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Council Packet - 2/20/2017
THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, REGULAR SESSION TO BE HELD AT THE HAROLD E. GETTY COUNCIL CHAMBERS Monday, February 20, 2017 5:30 PM CITY OF WATERLOO GOALS 1. Support the creation of new, livable wage jobs through a balanced economic development approach of assisting existing businesses, fostering start-ups, attracting new employers and cultivating an adequate workforce. 2. Implement a Community Policing strategy that creates a safe environment in Waterloo. 3. Reduce the City's property tax levies through a responsible balance of cost reduction in City operations and increases in taxable property valuations to ensure that Waterloo is a competitive, affordable, and livable city. 4 Enhance the image of Waterloo and the City to residents and businesses inside and outside of the community. General Rules for Public Participation 1. At the chair/presider's discretion, you may address an item on the current agenda by stepping to the podium, and after recognition by the chair/presider, state your name, address and group affiliation (if appropriate) and speak clearly into the microphone. 2. You may speak one (1) time per item for a maximum of five (5) minutes as long as you have registered with the City Clerk's office no later than 4:00 p.m. on the day of the Council Meeting. If not registered with the City Clerk's office you may speak one (1) time per item for a maximum of three (3) minutes. 3. If there is a hearing scheduled as part of an agenda item, the chair/presider will allow everyone who wishes to address the council, using the same participation guidelines found in these "general rules". 4. Although not required by city code of ordinances, oral presentations may be allowed at the chair/presider's (usually the Mayor or Mayor Pro Tem) discretion. The "oral presentations" section of the agenda is your opportunity to address items not on the agenda. You may speak one (1) time for a maximum of five (5) minutes as long as you have registered with the City Clerk's office no later than 4:00 p.m. on the day of the Council Meeting. If not registered with the City Clerk's office a speaker may speak to one (1) issue per meeting for a maximum of three (3) minutes. Official action cannot be taken by the Council at that time, but may be placed on a future agenda or referred to the appropriate department. 5. Keep comments germane and refrain from personal, impertinent or slanderous remarks. 6. Questions concerning these rules or any agenda item may be directed to the Clerk's Office at 291-4323. 7. Citizens are encouraged to register with the Clerk's Office by 4:00 p.m. on Monday of the day of the City Council meeting to appear before the City Council (may also register by phone). Registered speakers will be given first priority. Page 1 of 405 Roll Call. Prayer or Moment of Silence Pledge of Allegiance Kelley Felchle, City Clerk Agenda, as proposed or amended. Minutes of February 13, 2017, Regular Session, as proposed. ORAL PRESENTATIONS Iowa Code Chapter 21 gives the public the right to attend council meetings but it does not require cities to allow public participation except during public hearings. The City of Waterloo encourages the public to participate during the Oral Presentations by following the rules listed on the front of the agenda. 1. Consent Agenda: (The following items will be acted upon by voice vote on a single motion without separate discussion, unless someone from the council or public requests that a specific item be considered separately.) A. Resolution to approve the following: 1. Bills Payment, Finance Committee Invoice Summary Report, a copy of which is on file in the office of the City Clerk. 2. Resolution setting date of public hearing as March 6, 2017, for a request by Noe and Selivy Sibrian, to enter into a development agreement,to vacate, sell and convey a portion of Dubuque Road right-of-way for $1,000.00, located adjacent and north of 2006 Dubuque Road, and instruct City Clerk to publish notice. Submitted By: Noel Anderson, Community Planning & Development Director 3. Resolution setting a date of public hearing as March 6, 2017 for the sale and conveyance of city owned property located at 515 E. 3rd Street, 519 E. 3rd Street, 516 Pine Street, and 521 Pine Street, to JSA Development, LLC, in the amount of $1.00, and authorize City Clerk to publish said notice. Submitted By: Noel Anderson, Community Planning & Development Director 4. Resolution setting date of public hearing as February, 27, 2017, to approve plans, specifications, form of contract, etc. for demolition services for 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408-410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 Chalmers Avenue and 1005 Chalmers Avenue, and authorize City Clerk to publish notice. Submitted By:Noel Anderson -Community Planning and Development Director 5. Resolution approving preliminary specifications, bid documents, etc., and setting date of bid opening as March 16, 2017 and date of public hearing as March 20, Page 2 of 405 2017, for FY 2017 Highland Park Playground Project, and instruct City Clerk to publish notice of specifications, bid document, etc. Submitted By: Travis Nichols, Facilities/Project Manager 6. Resolution approving preliminary plans, specifications, form of contract, etc. and setting date of bid opening as March 9, 2017 and date of public hearing as March 13, 2017 for the F.Y. 2017 Site Grading for the Northeast Industrial Park Project, Contract No. 926, and instruct City Clerk to publish notice of preliminary plans, specifications, form of contract, etc. Submitted By: Jeff Bales, Associate Engineer 7. Resolution setting the date of public hearing as Thursday, March 9, 2017 at 5:30 p.m. to approve the FYE2018 budget and instruct the City Clerk to publish notice. Submitted By: Michelle Weidner, Chief Financial Officer B. Motion to approve the following: 1. TRAVEL REQUESTS a. Abraham Funchess, Jr., Executive Director Class/Meeting: African American Children & Families Conference Destination: Cedar Falls, IA Dates: February 23-24, Amount not to exceed: $125.00 2017 2. LIQUOR LICENSES a. Veterans of Foreign Wars Club Post 1623, 1406 Commercial Street Class: A Liquor w/Outdoor Service Renewal Application Includes Sunday Expiration Date: 1/14/2018 PUBLIC HEARINGS 2. Sale and conveyance of city -owned property located at 1003 Lafayette Street to Karina Valdez with a purchase price of $130,000 through the Neighborhood Stabilization Program. Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING -No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution authorizing sale and conveyance of 1003 Lafayette Street to Karina Valdez, in the amount of $130,000, and authorize the Mayor and City Clerk to execute said documents. Submitted By:Rudy D. Jones, Community Development Director RESOLUTIONS 3. Resolution approving award of bid to McGrath Auto, Cedar Rapids, IA in the amount of $24,898, for the purchase of one (1) Front Wheel Drive Cargo Van, to support Animal Control Operation. Submitted By: Mark Rice, Public Works Director 4. Resolution authorizing an exception to the City of Waterloo purchasing procedures, to Page 3 of 405 approve piggyback from the current active bid from Bill Colwell Ford, Hudson Iowa, for the purchase of one (1) 2017 Ford Interceptor SUV in the amount of $28,576. Submitted By: Mark Rice, Public Works Director 5. Resolution recommending final acceptance of the Rehabilitation of Taxiway A and Runway 12/30 Crack Sealing Project, and Approve Release of Pay Estimate 5 (final), in the amount of $42,901.50, to Aspro, Inc. of Waterloo, Iowa, and authorize the Airport Director to execute said document. Submitted By: Keith Kaspari, Airport Director 6. Resolution approving award of contract to Mike Dolan Concrete and Masonry, Inc., of Waterloo, Iowa, in the amount of $141,709.87, and approving the contract, bonds, and certificate of Insurance for the FY 2017 Permeable Alley Project, Contract No. 905, and authorize Mayor and City Clerk to execute all necessary documents. Submitted By: Wayne Castle, PLS, PE, Associate Engineer 7. Resolution approving award of contract to Wapsi Pines Lawn Care & Landscaping, of Cedar Falls, Iowa in the amount of $17,150.00, and approving the contract, bonds, and certificate of Insurance for the FY 2017 Tree Clearing - City Composting Site Project, Contract No. 927, and authorize Mayor and City Clerk to execute all necessary documents documents. Submitted By: Dennis Gentz, PE, Assistsant City Engineer 8. Resolution approving Supplemental Agreements to 60/20/20 Railroad Surface Crossing Repair Agreements, for the E. 4th Street and Nevada Street Crossings, to clarify the maximum amount of retainage that Highway Authority may elect to retain, when making progressive payments to Company, as provided under Section IX of the aforesaid separate agreement. Submitted By: Jeff Bales, Associate Engineer 9. Resolution approving a request by JDE Engineering, on behalf of the City of Waterloo, for the final plat of Wagner Road Subdivision, a six (6) lot industrial subdivision, located to the north of 3488 Wagner Road. Submitted By: Noel Anderson, Community Planning and Development Director 10. Resolution approving the Final Plat of Southland Park Fifth Addition, a re -plat of lots C- 1, C-2, and C-3 in Southland Park Third Addition, to allow for the development of six (6) new residential lots. Submitted By: Noel Anderson, Community Planning and Development Director 11. Resolution supporting the application by Park Avenue Lofts, LLC, for the Iowa Workforce Housing Tax Incentives Program, to construct twenty-seven (27) residential units in Waterloo, located at 325 East Park Avenue. Submitted By: Noel Anderson, Community Planning & Development Director 12. Resolution amending the Real Estate Purchase Agreement with Locus Partnership, approved on October 10, 2016, regarding timeline for vacating the property from February 10, 2017 to March 31, 2017, and authorize the Mayor and City Clerk to execute all necessary documents. Page 4 of 405 Submitted By: Noel Anderson, Community Planning & Development Director 13. Resolution approving an additional $7,500 in funds from the City of Waterloo for local match to $600,000 in federal STP funds for the Northeast Industrial Access Study, and authorize Mayor and City Clerk to execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director 14. Resolution approving Development Agreement between City of Waterloo and BCS Properties, LLC for the construction of a $2 million commercial building, tied to the overall development of 10 acres of land, with 15 years at 95% tax rebates, generally located northeast of the intersection of East Ridgeway Avenue and Highway 63, and authorize the Mayor and City Clerk to sign and fully execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director 15. Resolution approving Development Agreement between City of Waterloo and BCS Properties, LLC for the development of land to other third party businesses and developers, by offering the land for development at low costs, for the overall development of over 10 acres of land, with 15 years at 95% tax rebates, generally located northeast of the intersection of East Ridgeway Avenue and Highway 63, and authorize the Mayor and City Clerk to execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director 16. Resolution approving Development Agreement between City of Waterloo and Fusion Real Estate Properties, LLC for the development of a 10,000 square foot commercial building, with a minimum assessed value of $750,000, and authorize the Mayor and City Clerk to sign and fully execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director 17. Resolution approving Development Agreement between City of Waterloo and Reed Properties, LLC for the development of a 10,000 square foot commercial building, with a minimum assessed value of $900,000, and authorize the Mayor and City Clerk to execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director 18. Resolution amending the existing 657A Sale of Property Policy to add provisions for payment back for acquisition price ($5,000), plus another $5,000, upon completion for successful development. Submitted By: Noel Anderson, Community Planning & Development Director ORDINANCES 19. An Ordinance amending the 2007 City of Waterloo Code of Ordinances - Weed Complaints, Abatement and Code Enforcement Motion to receive, file and consider for the first time an ordinance amending the 2007 Code of Ordinances of the City of Waterloo, Iowa, by repealing Article 1- Definitions, Article B-4 - Weed Complaints, Article B-5 - Notice to Property Owners, Article B-6 - Payment, Assessment of Costs, Appeal, Article B-7 - Exceptions, Article B-8 - Violation; Penalty, of Chapter 5 - Vegetation, of Title 7 - Public Ways & Property and enacting in lieu thereof a new Article 1- Definitions, Article B-4 - Weed Complaints, Article B-5 - Page 5 of 405 Notice to Property Owners, Article B-6 - Payment, Assessment of Costs, Appeal, Article B-7 - Exceptions, Article B-8 - Violation; Penalty, of Chapter 5 - Vegetation, of Title 7 - Public Ways & Property. Motion to suspend the rules. Motion to receive, file, consider and pass for the second and third times and adopt said ordinance. Submitted By: Dave Zellhoefer, City Attorney OTHER COUNCIL BUSINESS 20. Motion to receive the City of Waterloo Comprehensive Annual Financial Report for fiscal year ending June 30, 2016 and place on file. Submitted By: Michelle Weidner, Chief Financial Officer 21. Review of Waste Management Department budget. ADJOURNMENT Motion to adjourn. Kelley Felchle City Clerk MEETINGS 3:55 p.m. Council Work Session, Harold E. Getty Council Chambers 5:10 p.m. Finance Committee, Harold E. Getty Council Chambers PUBLIC INFORMATION 1. Certified List for the position of Facilities Maintenance Foreman for the City of Waterloo, Iowa Building Maintenance Department, as certified by the Civil Service Commission on February 14, 2017. 2. Certified List for the position of Police Lieutenant, for the City of Waterloo, Iowa Police Department, as certified by the Civil Service Commission on February 14, 2017. 3. Civil Service Commission Minutes of October 28, 2016. 4. Civil Service Commission Minutes of December 22, 2016. 5. Civil Service Commission Minutes of January 27, 2017. Page 6 of 405 CITY OF WATERLOO Council Communication Minutes of February 13, 2017, Regular Session, as proposed. City Council Meeting: 2/20/2017 Prepared: REVIEWERS: Department Reviewer Action Date Clerk Office Higby, Nancy Approved 2/13/2017 - 5:31 PM ATTACHMENTS: Description Type D Minutes of February 13, 2017 Backup Material Submitted by: Submitted By: Page 7 of 405 February 13, 2017 The Council of the City of Waterloo, Iowa, met in Regular Session at Harold E. Getty Council Chambers, Waterloo, Iowa, at 5:30 p.m., on Monday, February 13, 2017. Mayor Quentin Hart in the Chair. Roll Call: Jacobs, Morrissey, Powers, Lind, Amos, and Welper. Absent: Schmitt Prayer or Moment of Silence. Pledge of Allegiance: Mayor Quentin Hart 146039 - Welper/Amos that the Agenda, as proposed, for the Regular Session on Monday, February 13, 2017, at 5:30 p.m., be accepted and approved. Voice vote -Ayes: Six. Motion carried. 146040 - Welper/Amos that the Minutes, as proposed, for the Regular Session on Monday, February 6, 2017, at 5:30 p.m., be accepted and approved. Voice vote -Ayes: Six. Motion carried. ORAL PRESENTATIONS Todd Obadal, 124 Amity Drive, requested that the city refund recycling fees to citizens during the period that the city had to send recycling to the landfill. Mayor Hart commented that a press release was sent out stating that recycling services are operating again. Randy Herod, 111 Hyland Boulevard, announced that Junior Grimm, the former chief of police, has passed away. Mr. Grimm was the one who shared the telegram that let the Sullivan Family know that their five sons had passed away. Randy Herod invited citizens to the funeral. Steve Murphy, 124 Terrace Drive, commented that he would like to know how much money was made or lost by not recycling and if the city profited then requested that the money be refunded to Green Scene. Jim Chapman, 224 Bertch, provided council with a list of businesses that have left Waterloo and questioned if the city is keeping track of how many jobs the city is losing and gaining back. Mayor Hart commented that he would discuss with Noel Anderson, Community Planning & Development Director. Wayne Nathem, 548 Cloverdale, questioned if the Airport is making a profit. Keith Kaspari, Airport Director, explained that the airport is a self-sustaining facility. Wayne Nathem questioned how many additional individuals traveling in and out of Waterloo were from Honor Flights. Keith Kaspari, Airport Director, explained that the Honor Flight numbers were not included in the total. David Dryer, 3145 W. 4th Street, commented that he was disappointed in the budget presentations were primarily filled with goals and mission statements and would like to know the budget figures for each department. John Sherbon, 1715 Robin Road, questioned if Mediacom fiber cables could be tied in with the fiber cables that have been put in by the city. Mayor Hart commented that the city will look into it. Bill Kammeyer, 526 Home Park Boulevard, commented that it is difficult for senior citizens to operate computers and would like information provided to citizens during the meeting. Page 8 of 405 February 13, 2017 Page 2 Mr. Amos thanked Waterloo Police Officers for their response to an incident yesterday. 146041 - Welper/Amos that the above oral comments be received and placed on file. Voice vote -Ayes: Six. Motion carried. CONSENT AGENDA 146042 - Welper/Lind that the following items on the consent agenda be received, placed on file and approved: a. Resolutions to approve the following: 1. Resolution approving Finance Committee Invoice Summary Report, dated February 13, 2017, in the amount of $827,778.42 a copy of which is on file in the City Clerk's office, together with recommendation of approval of the Finance Committee. Resolution adopted and upon approval by Mayor assigned No. 2017-95. 2. Resolution approving the request of JSA Development, LLC for tax exemptions for the renovation of a commercial building valued at $2,800,000 for the property located at 611-615 Sycamore Street and located within the Consolidated Urban Revitalization Area (CURA). Resolution adopted and upon approval by Mayor assigned No. 2017-96. 3. Resolution approving the request of JSA Development, LLC for tax exemptions for the renovation of a commercial building valued at $3,400,000 for the property located at 320-322 E 4th Street and located within the Consolidated Urban Revitalization Area (CURA). Resolution adopted and upon approval by Mayor assigned No. 2017-97. 4. Resolution approving the request of JSA Development, LLC for tax exemptions for the renovation of a commercial building valued at $763,000 for the property located at 223 W 4th Street and located within the Consolidated Urban Revitalization Area (CURA). Resolution adopted and upon approval by Mayor assigned No. 2017-98. 5. Resolution approving the request of JSA Development, LLC for tax exemptions for the renovation of a commercial building valued at $798,000 for the property located at 225 W 4th Street and located within the Consolidated Urban Revitalization Area (CURA). Resolution adopted and upon approval by Mayor assigned No. 2017-99. 6. Resolution approving the request of JSA Investments, LLC for tax exemptions for the renovation of a commercial building valued at $1,201,000 for the property located at 227-229 W 4th Street and located within the Consolidated Urban Revitalization Area (CURA). Resolution adopted and upon approval by Mayor assigned No. 2017-100. 7. Resolution approving the request of Peter Hoecker for tax exemptions on the construction of a new condo valued at $164,900 for property located at 4007 Sarah Drive, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-101. 8. Resolution approving the request of Heather Solomon for tax exemptions on the construction of a new single family home valued at $1,250,000 for property located at 3665 W 4th Street, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-102. Page 9 of 405 February 13, 2017 Page 3 9. Resolution setting the date of public hearing as February 27, 2017, to sell and convey two (2) city -owned properties, generally located adjacent to 419 Almond Street, in the amount of $1.00 to Iowa Heartland Habitat for Humanity, along with a Development Agreement, and instruct City Clerk to publish notice. Resolution adopted and upon approval by Mayor assigned No. 2017-103. 10. Resolution setting the date of public hearing as February 27, 2017 for a request by the City of Waterloo to vacate a portion of a former frontage road, located east of and adjacent to 1326 La Porte Road, and instruct City Clerk to publish notice. Resolution adopted and upon approval by Mayor assigned No. 2017-104. 11. Resolution approving variance request by Nicole Fischels, to Section 5-2-6 of the Waterloo Code of Ordinances, Discharging Weapons, to allow for the St. John's/St. Athanasius National Archery in the Schools Tournament, to be held at the Cedar Valley Sportsplex, 300 Jefferson Street, on December 9, 2017 from 7:00 a.m. to 7:00 p.m. Resolution adopted and upon approval by Mayor assigned No. 2017-105. b. Motion to approve the following: 1. 2. a. b. c. d. e. a. b. c. d. e. Travel Requests Name & Title of Personnel Class/Meeting Destination Date(s) Amount not to Exceed Ben Wagner, Draftsperson Iowa Technology and Geospatial Conference West Des Moines, IA June 21- 23, 2017 $527.00 Lt. Campbell & Sgt. Ludwig 2017 (IAWP) Iowa Women's Police Association Conference Ames, IA March 20-21, 2017 $460.00 Sgt. Bose, Sgt. Farmer, P.O. Bovy, P.O. Brownell and P.O. Herkelman 2017 USPCA Certification for K-9 Teams Denison, IA March 13-15, 2017 $1,765.00 Nancy Culpepper, HR Administrative Secretary 2017 Iowa Employment Conference and Employment, Training, Benefits & Wellness Conference Altoona, IA April 5-6, 2017 $360.00 Steven Hoambrecker, Director Waste Management Services Iowa Rural Water Association, 42nd Annual Conference Des Moines, IA February 20-22, 2017 $651.00 Approved Beer, Liquor, and Wine Applications Name & Address of Business Class New or Renewal Expiration Date Includes Sunday Prime Mart, 3535 Marigold Drive B Wine / C Beer / E Liquor Renewal 1/19/2018 X The Other Place, 360 E. Ridgeway Avenue C Liquor Renewal 1/25/2018 X B & B East, 1615 Bishop Avenue B Wine / C Beer / E Liquor Renewal 2/13/2018 X Cedar Valley Golf Center, 1850 W. Ridgeway Avenue Special C Liquor Renewal 2/28/2018 X Hy -Vee Market Cafe 143, C Liquor Renewal 3/15/2018 X Page 10 of 405 February 13, 2017 f. g. h. Page 4 1422 Flammang Drive Hy -Vee Food & Drugstore #3, 1422 Flammang Drive B Wine / C Beer / E Liquor Renewal 2/8/2018 X Kings & Queens, 304 W. 4th Street (Adding Sunday Sales) C Liquor Renewal 11/15/2017 X WCA Building & Amphitheatre, 225 Commercial Street Special C Liquor w/Outdoor Service Renewal 6/21/2017 X Mayor Hart reminded staff that council would like a review of what they learned at training. Roll call vote -Ayes: Six. Motion carried. PUBLIC HEARINGS 146043 - Lind/Amos that proof of publication of notice of public hearing on the request by Chuck Heene to rezone approximately 0.456 acres from "R-4" Multiple Residence District to "R -4,C -Z" Conditional Multiple Residence District for the purpose of allowing a grocery/retail store at 915-919 West 4th Street, as published in the Waterloo Courier on January 30, 2017, be received and placed on file. Voice vote -Ayes: Six. Motion carried. This being the time and place of public hearing, the Mayor called for written and oral comments and there were none. 146044 - Lind/Amos that the hearing be closed and recommendation of approval of the Planning, Programming and Zoning Commission be received and placed on file. Voice vote -Ayes: Six. Motion carried. 146045 - Lind/Amos that "an Ordinance amending Ordinance No. 5079, as amended, City of Waterloo Zoning Ordinance, by amending the Official Zoning Map referred to in Section 10-4-4, approving a Rezone of certain property", be considered and passed for the first time. Roll -call vote -Ayes: Six. Motion carried. Mr. Morrissey commented that he is in favor of the item. 146046 - Lind/Amos that the rules requiring ordinances to be considered and voted for passage at two prior meetings be suspended. Roll -call vote -Ayes: Six. Motion carried. Mayor Hart questioned the urgency of the item. Chuck Heene commented that they would like to move the project forward as soon as possible. Noel Anderson, Community Planning & Development Director, commented that Mary Potter, President of Church Row Neighborhood Association is not in favor of the item and that a meeting was to take place between her and Mr. Heene. Mr. Jacobs questioned if the meeting took place. Chuck Heene explained that the meeting did take place and that Mary Potter was not in favor of the project going into that particular location. 146047 - Lind/Amos that "an Ordinance amending Ordinance No. 5079, as amended, City of Waterloo Zoning Ordinance, by amending the Official Zoning Map referred to in Section 10-4-4, approving a Rezone of certain Page 11 of 405 February 13, 2017 Page 5 property", be considered and passed for the second and third times and adopted. Roll call vote - Ayes: Six. Motion carried. Ordinance adopted and upon approval by Mayor assigned No. 5387. 146048 - Welper/Morrissey that proof of publication of notice of public hearing on the purchase of one (1) FWD/AWD Cargo Van to support Animal Control Operations, as published in the Waterloo Courier on January 30, 2017, be received and placed on file. Voice vote -Ayes: Six. Motion carried. This being the time and place of public hearing, the Mayor called for written and oral comments. Marcia Bunchen, 1510 Lyon, questioned if part of animal control went back to the Humane Society and questioned how the agreement works with the contract. Mayor Hart explained the contract. Sandie Greco, Superintendent of Traffic, provided the department contact information. 146049 - Welper/Powers that the hearing be closed and oral comments be received and placed on file. Voice vote -Ayes: Six. Motion carried. 146050 - Welper/Morrissey that "Resolution confirming approval of plans, specifications, form of contract, etc.", be adopted. Roll -call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-106. 146051 - Welper/Morrissey that "Resolution authorizing to proceed", be adopted. Roll -call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-107. 146052 - Welper/Morrissey Motion to receive and file and instruct City Clerk to read bids and refer to Public Works Director for review. Bidder Bid Amount McGrath Auto Cedar Rapids, IA $24,898.00 Dan Deery Dodge Waterloo, IA $28,921.00 Sandie Greco, Superintendent of Traffic Operations, explained the grant will pay for half of the vehicle. Mr. Lind questioned why the bids were so far off the estimate. Sandie Greco further explained the bids. Voice vote -Ayes: Six. Motion carried. 146053 - Morrissey/Amos that proof of publication of notice of public hearing on the FY 2017 Tree Clearing - City Composting Site, Contract No. 927, as published in the Waterloo Courier on January 30, 2017, be received and placed on file. Voice vote -Ayes: Six. Motion carried. Page 12 of 405 February 13, 2017 Page 6 This being the time and place of public hearing, the Mayor called for written and oral comments. David Dryer, 3145 W. 4th Street, requested an overview of the composting site. Mark Rice, Public Works Director, explained the plans for the site. 146054 - Morrissey/Amos that the hearing be closed and oral comments be received and placed on file. Voice vote -Ayes: Six. Motion carried. 146055 - Morrissey/Amos that "Resolution confirming approval of plans, specifications, form of contract, etc.", be adopted. Roll -call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-108. 146056 - Morrissey/Amos that "Resolution authorizing to proceed", be adopted. Roll -call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-109. 146057 - Morrissey/Amos Motion to receive and file and instruct City Clerk to read bids and refer to City Engineer for review. Bidder Bid Security Bid Amount Vieth Construction Cedar Falls, IA 5% $36,862.50 Professional Lawn Care Waterloo, IA 5% $20,199.50 Peterson Contractors Inc. Reinbeck, IA 5% $22,700.00 Twin City Tree Service, LLC Waterloo, IA 5% $23,900.00 Wapsie Pines Cedar Falls, IA 5% $17,150.00 Minturn, Inc. Brooklyn, IA 5% $36,937.50 Voice vote -Ayes: Six. Motion carried. RESOLUTIONS 146058 - Amos/Morrissey that "Resolution approving Preliminary Plat of Southland Park Fifth Addition, a re -plat of lots C-1, C-2, and C-3 in the Southland Park Third Addition to allow for the development of six (6) new residential lots", be adopted. Roll call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-110. 146059 - Amos/Morrissey that "Resolution approving a request by JDE Engineering on the behalf of the City of Waterloo for the preliminary plat of Wagner Road Subdivision, a six lot industrial subdivision, located to the north of 3488 Wagner Road", be adopted. Roll call vote -Ayes: Six. Motion carried. Page 13 of 405 February 13, 2017 Page 7 Resolution adopted and upon approval by Mayor assigned No. 2017-111. 146060 - Amos/Morrissey that "Resolution approving submission of application for the 2017 Governor's Traffic Safety Bureau Impaired Driving Countermeasures Grant", be adopted. Roll call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-112. 146061 - Amos/Morrissey that "Resolution approving City of Waterloo Open Records Request Policy", be adopted. Roll call vote -Ayes: Six. Motion carried. Forest Dillavou, 1725 Huntington Road, questioned if council members are charged for record requests. Kelley Fetchle, City Clerk, explained that council is not charged. 146062 - Lind/Welper motion to add language to the policy allowing council members to receive a copy of city records at no cost. Roll call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-113. 146063 - Welper/Morrissey that "Resolution approving staff recommendation of Option 2 for the FY 2017 4th Street Bridge Walkway and Canopy Improvements, Contract 910", be adopted. Roll call vote -Ayes: Five. Nays: One (Lind). Motion carried. Jim Chapman, 224 Bertch, spoke in favor of using a lower cost option for repairing the bridge. Forest Dillavou, 1725 Huntington Road, encouraged city staff to use TIF funds to repair the bridge. Eric Thorson, City Engineer, explained the proposed repairs to the 4th Street Bridge. Mayor Hart cleared up misconceptions that the project would not incorporate changes to the bridge that were not iconic. Eric Thorson explained that previously the project only received one bid and noted that specialty work is entailed in completing the work. He further explained that contractors are currently bidding out projects and stressed the importance of the city seeking bids now. Tavis Hall, Executive Director of Main Street Waterloo, 212 E. 4th Street, spoke in favor of repairing the bridge and preserving the canopy. David Dryer, 3145 W. 4th Street, commented that he has never been asked if he would like his taxes impacted by the project and that he is not in favor of keeping the canopy. Mayor Hart commented that the bridge is regarded as one of the most iconic bridges in the state. Wayne Nathem, 548 Cloverdale, spoke in support of keeping the canopy and added that had the city maintained it all along, it might not be costing so much now. Jessica Young, 318 W. 3rd Street, Apt. 1, commented on the iconic nature of the bridge and spoke in favor of keeping the bridge canopy. She also agrees with ongoing maintenance. Esther Valtchev, 527 E. Park, spoke in favor of keeping the bridge canopy and that she believes that residents would be willing to volunteer to save the bridge and thanked the city for listening to citizens for pitching in to help save the bridge and revitalize the downtown. Page 14 of 405 February 13, 2017 Page 8 Donna Nelson, 514 Columbia Circle, expressed concern for the city's image and believes that the bridge gives the city an iconic image and also thanked the Mayor for hiring a part time public relations employee. Chad Shipman, 2001 Teton Drive, asked that the city look at the bridge as a foundation of future growth and expressed a need for full time marketing employees at the city and at Main Street Waterloo. Brent Berg, 922 Mulberry, explained that when he first moved to Waterloo he felt that Waterloo was a town that believes it does not deserve nice things and that the city needs to invest in positive growth. Marcia Bunchen, 1510 Lyon, expressed support for repairing the canopy on the 4th Street bridge. Jim Ellis, 126 Hanes Ave., commented that the 4th Street bridge is number five on the list of top 10 bridges in Iowa. Steve Murphy, 124 Terrace Drive, commented that a lengthy conversation could be had about how to pay for the bridge and requested that safety cameras could be added to the bridge. Ivan Valtchev, 527 E. Park Ave., commented that the city should consider replacing the panels as part of the base bid and not an alternate. Mr. Amos commented that he has received more contact from citizens on this issue, and that all were in favor of keeping the canopy. Resolution adopted and upon approval by Mayor assigned No. 2017-114. 146064- Lind/Jacobs Motion to amend item #9 by designating that $750,000 of the project cost be paid for by TIF funds. Roll call vote -Ayes: One. Nays: Five (Amos, Welper, Jacobs, Morrissey, Powers). Motion failed. Mr. Jacobs requested an explanation of using TIF funds on the project. Michelle Weidner, Chief Financial Officer, explained that it could be studied but it would prevent downtown from working on other projects. Mayor Hart questioned if some parts of the project could be paid for with TIF funds. He commented that the bonds have been sold and that the city would need to look into changing the use of the bonds. Mr. Lind commented that this could be a compromise between those who are in favor of the bridge and having those who want to keep the canopy pay for the canopy with TIF funds. Mr. Jacobs commented that Ward 2 supports keeping the canopy and that he is in favor of looking into paying for part of it with TIF funds. Mr. Morrissey commented that he is not in favor of having cameras on the bridge and believes that it is a safe place to walk and that many historic structures have been torn down and that the investment should not be restricted to TIF funds. Mayor Hart commented that he is not hearing that council members want the canopy torn down but he is hearing that council members would like to look at other ways of paying for the project. Michelle Weidner explained that the city has sold bonds in prior bond issues to pay for the work but they were not sold as urban renewal bonds and the city has received grant funds for Black Hawk Gaming. Mayor Hart commented that the goal is to use as much TIF as possible without hindering other obligations. Page 15 of 405 February 13, 2017 Page 9 Mr. Morrissey commented that the motion to amend said to restrict to TIF funds meaning no additional funds other than the grant and TIF funds. Mr. Lind clarified that the motion is to restrict project funding to use TIF funds only. He further noted that Waterloo has the highest tax rate in the state. Mayor Hart clarified that the city is not the highest tax city in the state. Mr. Lind corrected his statement to, the second highest in the state, and added that the city needs to stop spending money to try and be another Seattle or Madison, Wisconsin. Mayor Hart commented that the city's tax rate is actually down from 17.76 last year prior to this council and him taking the Mayor's seat, with a continuing transition downward. He further committed, that if the vote does not pass to use only TIF funds, he will look at other ways to help pay for the project. Mr. Jacobs agrees that the bridge is important and it needs to be repaired and agrees that additional sources of funding should be considered to help lower taxes for the citizens. Mr. Welper commented that he is not in favor of the motion. 146065 - Lind/Morrissey that motion to approve Change Order No.1 for a net decrease of $7,953.20 for Hawkeye Lift Station Wet Well Rehabilitation Project, City Contract No. 911; and authorize the Mayor and City Clerk to execute said document", be adopted. Roll call vote -Ayes: Six. Motion carried. 146066 - Lind/Morrissey that "Resolution approving Completion of Project and Recommendation of Acceptance of work performed by Abolt, Inc. of Fort Madison, IA, at a total cost of $85,392.80, for the Hawkeye Lift Station Wet Well Rehabilitation Project, Contract No. 911, and receive and file a two (2) year maintenance bond", be adopted. Roll call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-115. 146067 - Lind/Morrissey that "Resolution recommending final acceptance of the Repair Siding and Doors on T -Hangar Row B, and approve and Release Pay Estimate No. 4 (Final) in the amount of $5,074.76 to Modern Builders, Inc. of Janesville, Iowa, for the Repair Siding and Doors on T -Hangar Row B project at Waterloo Regional Airport", be adopted. Roll call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-116. 146068 - Amos/Morrissey that "Resolution recommending final acceptance of the Terminal Building Bag Makeup Door Replacement and Release of Pay Estimate 4 (Final) in the amount of $2,420.00 to Modern Builders, Inc. of Janesville, Iowa for the Terminal Building Bag Makeup Door Replacement project at the Waterloo Regional Airport", be adopted. Roll call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-117. 146069 - Amos/Morrissey that "Resolution recommending final acceptance of the Wall Repairs to Hangar 4 and Release of Pay Estimate 4 (Final) in the amount of $3,882.15 (Project Retainage) to Modern Builders, Inc. of Janesville, Iowa, for the Wall Repairs to Hangar 4 project at the Waterloo Regional Airport", be adopted. Roll call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-118. 146070 - Morrissey/Amos Page 16 of 405 February 13, 2017 Page 10 that "Resolution adopting the 2017-2022 Strategic Plan", be adopted. Roll call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-119. 146071 - Lind/ Motion to table indefinitely until a work session is held. Mayor Hart ruled that the motion failed due to a lack of a second. Mayor Hart provided an overview of the goals and strategies of the proposed strategic plan and further commented that the payment for this process was supported by all of council. Mr. Welper commented that the city needs a bigger boat. Mayor Hart commented that the goals are big but believes staff needs to be challenged. Mr. Jacobs commented that it would be good to add a success indicator that shows, for example, how many jobs were brought in each year. He further commented that he believes that the levy rate goal needs to be more. Mr. Lind questioned if an alternative plan is in place if the strategic plan is not working. Mayor Hart commented that a city of similar size gives a report each year to council on progress on the goals. He is working on an internal score card for staff to measure progress on each of the goals. He further explained that the plan will outlive the election and allows council to have a real impact on the city beyond their term. Mr. Lind comments that he supports the strategic plan after hearing the Mayor's full explanation of the plan. Mr. Jacobs commented that he believes that the strategic plan provides a road map to guide our city. Mayor Hart explained that the challenge the city will have in the next few years is whether the commercial roll back is repealed. The rollback equates to approximately $1.8 million dollars and if a percentage is taken back, then the potential exists that it will be placed on the backs of residential property owners. Mr. Jacobs commented that it would be good to revisit on an annual basis and allow the city to reassess. Mr. Powers commented that the intent of the rollback was to bring new businesses, development and growth to the state and added that Waterloo city staff has had a vision to capitalize on the rollback. Mr. Morrissey commented that the strategic plan was a working document and that all of council would have input but that it would change during the process. He further commented that Waterloo needs to invest in order to grow and hopes that continues in the future. ORDINANCES 146072 - Lind/Amos that "an Ordinance amending Ordinance No. 5079, as amended City of Waterloo Zoning Ordinance, by amending the Official Zoning Map referred to in Section 10-4-4, approving a rezone of certain property", be received, placed on file, considered and passed for the second time. Roll call vote - Ayes: Six. Motion carried. 146073 - Lind/Amos that rules requiring ordinances to be considered and voted for passage at two prior meetings be suspended. Roll call vote -Ayes: Six. Motion carried. Page 17 of 405 February 13, 2017 Page 11 146074 - Lind/Amos that "an Ordinance amending Ordinance No. 5079, as amended City of Waterloo Zoning Ordinance, by amending the Official Zoning Map referred to in Section 10-4-4, approving a rezone of certain property", be considered and passed for the third time and adopted. Roll call vote -Ayes: Six. Motion carried. Ordinance adopted and upon approval by Mayor assigned No. 5388. OTHER COUNCIL BUSINESS 146075 - Morrissey/Powers that motion to approve Change Order No: 5 (Final) for the completion of Taxiway Alpha (East) via FAA Grant No: 44 at Waterloo Regional Airport, and request the Mayor and City Clerk execute said documents, be received, placed on file and approved. Voice- vote -Ayes: Six. Motion carried. ADJOURNMENT Mr. Morrissey commented on the need for citizens to contact local legislators about bills currently up for debate. 146076 - Welper/Jacobs that the Council adjourn at 7:33 p.m. Voice vote -Ayes: Six. Motion carried. Kelley Fetchle City Clerk Page 18 of 405 CITY OF WATERLOO Council Communication Resolution setting date of public hearing as March 6, 2017, for a request by Noe and Selivy Sibrian, to enter into a development agreement,to vacate, sell and convey a portion of Dubuque Road right-of-way for $1,000.00, located adjacent and north of 2006 Dubuque Road, and instruct City Clerk to publish notice. City Council Meeting: 2/20/2017 Prepared: 3/25/2015 REVIEWERS: Department Planning & Zoning Clerk Office Reviewer Schroeder, Aric Even, LeAnn ATTACHMENTS: Description D Attachments - 2006 Dubuque Rd Vacate SUBJECT: Submitted by: Recommended Action: Summary Statement: Action Approved Approved Type Cover Memo Date 2/15/2017 - 10:43 AM 2/15/2017 - 2:29 PM Resolution setting date of public hearing as March 6, 2017, for a request by Noe and Selivy Sibrian, to enter into a development agreement,to vacate, sell and convey a portion of Dubuque Road right-of-way for $1,000.00, located adjacent and north of 2006 Dubuque Road, and instruct City Clerk to publish notice. Submitted By: Noel Anderson, Community Planning & Development Director Approval Transmitted is a request setting the date of public hearing as March 6, 2017 for a request by Noe and Selivy Sibrian to enter into a development agreement to vacate, sell and convey a portion of Dubuque Road right-of- way for $1,000.00 located adjacent and north of 2006 Dubuque Road, and instruct City Clerk to publish pertinent notice. The right-of-way requested to be vacated is approximately 0.23 acres in size and is located at the southeast corner of Dubuque Road and Nevada Street. The applicant recently purchased this property, and the previous owner had multiple code violations ranging from a vehicular use area that encroaches into the Dubuque Road right-of-way and an unapproved hard surfacing to the east of the building. In recent action taken by the Board of Adjustment, the encroaching vehicular use area was required to be removed from the Dubuque Road right-of-way and have a setback of 1' from the north property line. The current applicant would like to see if the ability exists to vacate the right-of-way and not remove the paving, noting that due to the angle of the property line, they have concerns on the narrowness of the lot. Dubuque Road was once US Highway 20 before it was rerouted to the southern part of the city in the 1980s, and due to this once being a state Page 19 of 405 highway, the City of Waterloo had to follow Code of Iowa Section 306.23 when disposing of this property. The original parcel was a large triangular shape and the State of Iowa bought from two separate property owners in 1956 when Highway 20 was expanded in this particular area. Proper notice was sent to those two previous property owners last known in 1956, however, no response was heard back. The City had the property appraised to comply with the state code and the appraisal came back with a fair market value of $2,500.00. The applicant is offering to purchase for $1,000.00 to cover the appraisal cost, along with other costs and not the $2,500.00 appraised price, noting that they had $2,800.00 in surveyor costs, indicating their amount appears to meet the sale of city property policy. Staff feels that the offered amount of $1,000.00 appears to be fair and recommends approval of entering into a development agreement to get the property placed upon the tax rolls. At the November 10, 2015 Planning and Zoning Commission meeting, the Commission unanimously recommended approval of the vacate request. Expenditure Required: N/A Source of Funds: N/A Policy Issue: Right-of-way Alternative: N/A Background Information: N/A That part of Block Five (5), Cowin's 2nd Addition to Waterloo, Iowa, described as follows: Legal Descriptions: Commencing at the Southwest corner of aforesaid Block Five (5); thence N88°51'26"E Two Hundred Fifteen and Fifty-four Hundredths (215.54) feet along the South line of said Block Five (5) to the Southeast corner of parcel described in Document No. 2016-03074 in the Black Hawk County Recorder's Office and to the point of beginning; thence continue N88°51'26"E Twenty and Sixty-five Hundredths (20.65) feet still along said South line; thence Northwesterly Two Hundred Fifty-nine and Eighty Hundredths (259.80) feet along the arc of a curve concave Southerly having a radius of Seven Hundred Thirty-nine and Sixty Hundredths (739.60) feet and a long chord of Two Hundred Fifty-eight and Forty-seven Hundredths (258.47) feet which bears N61°33'54"W; thence S26°46'23"W Thirteen and Fourteen Hundredths (13.14) feet to the Northeasterly line of aforesaid parcel; thence Southeasterly Two Hundred Forty-one and Twenty-six Hundredths (241.26) feet along said Northeasterly line and along the arc of a curve concave Southerly having a radius of Seven Hundred Twenty-six and Sixty Hundredths (726.60) feet and a long chord of Two Hundred Forty and Fifteen Hundredths (240.15) feet which bears S62° 16' 04"E to the point of beginning containing 3,257 square feet. Page 20 of 405 REQUEST: APPLICANT: GENERAL DESCRIPTION: IMPACT ON NEIGHBORHOOD & SURROUNDING LAND USE: VEHICULAR & PEDESTRIAN TRAFFIC CONDITIONS: RELATIONSHIP TO RECREATIONAL TRAIL PLAN AND COMPLETE STREETS POLICY: ZONING HISTORY FOR SITE AND IMMEDIATE VICINITY: DEVELOPMENT HISTORY: BUFFERS/ SCREENING REQUIRED: DRAINAGE: FLOODPLAIN: Vacate portion of Dubuque Rd. November 10, 2015 Request by Noe Sibrian to vacate approximately 0.23 acres of Dubuque Road right-of-way adjacent to 2006 Dubuque Road. Noe Sibrian, 425 Independence Avenue, Waterloo, IA 50703 The applicant is requesting to vacate the right-of-way in question for the purposes of incorporating it with the site they own at 2006 Dubuque Road. The request would not appear to have a negative impact on the surrounding neighborhood or land use. The request would not appear to have a negative impact on vehicular or pedestrian traffic movements in the area. However, the applicant is showing on the submitted vacate document to vacate a portion of the right-of-way directly at the southeast corner of Nevada Street and Dubuque Road, which has two utility poles and a traffic signal. The right-of-way vacate plat will need to be updated to exclude this area. There are no recreational trails within the immediate area. There are no plans to extend a recreational trail along this portion of Dubuque Road, however, pedestrian accommodations could be added in the future in this area, as there are sidewalks along Nevada Street. The area of the proposed vacate is zoned "C-2" Commercial District, and has been zoned as such since October of 1975. North — Light industrial development and Chicago Central Railroad, zoned "R -2,C -Z" Conditional Zoning District. South — Single-family residences, zoned "R-2" One and Two Family Residence District. East — Single-family residences and Chicago Central Railroad, zoned "R-2" One and Two Family Residence District. West — Commercial development, zoned "C-2" Commercial District. The area is comprised of commercial and residential development, along with some light industrial uses, with the residential uses being developed in the early 1900s and commercial/industrial uses being developed in the 1960s up to 2009. No buffers or additional screening is needed with this request. Vacation of the right-of-way would not appear to have a negative impact on drainage in the area. No portion of the vacate area is located within a Special Flood Hazard Area as indicated by the Federal Insurance Administration's PgdtP2/f 6f 405 PUBLIC /OPEN SPACES/ SCHOOLS: UTILITIES: WATER, SANITARY SEWER, STORM SEWER, ETC RELATIONSHIP TO COMPREHENSIVE LAND USE PLAN: STAFF ANALYSIS — ZONING ORDINANCE: STAFF ANALYSIS — SUBDIVISION ORDINANCE: Vacate portion of Dubuque Rd. November 10, 2015 Flood Insurance Rate Map, Community Number 190025 and Panel Number 0302F, dated July 18, 2011. Highland Elementary School is located approximately a 1/2 mile to the east along Idaho Street. There are no known utilities in the area within question. There is a 30" sanitary sewer, along with a 48" storm sewer located within Nevada Street, directly to the west of the site in question. The Future Land Use Map designates this area as Commercial, and the vacate request is in conformance with the Future Land Use Map and Comprehensive Plan for this area. The Comprehensive Plan notes commercial uses as being uses that involve the retail sale of goods and/or services to the public for the purpose of profit. The site is located within the Primary Growth Area. The applicant is requesting to vacate 0.23 acres of City right-of-way at the intersection of Dubuque Road and Nevada Street, adjacent to 2006 Dubuque Road. There appears to be a possibility to vacate a portion of the right-of-way along the south side of Dubuque Road, as there appears to be no utilities in the area in question. The applicant is showing on the submitted vacate document to vacate a portion of the right-of-way directly at the southeast corner of Nevada Street and Dubuque Road, which has two utility poles and a traffic signal. That portion of the right-of-way vacate plat will need to be updated to exclude this area. The applicant recently purchased this property, and the previous owner had multiple code violations ranging from a vehicular use area that encroaches into the Dubuque Road right-of-way and an unapproved hard surfacing to the east of the building. In recent action taken by the Board of Adjustment, the encroaching vehicular use area was required to be removed from the Dubuque Road right-of-way and have a setback of 1' from the north property line. The current applicant would like to see if the ability exists to vacate the right-of-way and not remove the paving, noting that due to the angle of the property line, they have concerns on the narrowness of the lot. Dubuque Road at one time was Highway 20 before it was relocated to the south side of the City, therefore, the right-of-way will need to be appraised before it is sold and offered back to previous owners, abutting owners and properties that were a part of the overall acquisition parcel to follow state code. There is no platting required for this request. Pa'ff 22f 6f 405 November 10, 2015 STAFF Therefore, staff recommends that the request to vacate the RECOMMENDATION: approximately 0.23 acres of Dubuque Road right-of-way be approved for the following reasons: 1. The request would not appear to have a negative impact on the surrounding area. 2. The request would not appear to have a negative impact upon pedestrian and traffic conditions within the surrounding area, as there appears to be excess right-of-way. 3. There appears to be no utilities within the right-of-way in question. And subject to the following condition(s): 1. 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R73, 13 -P r I C-2 R-3 s a 2 P//fi z R -2 -,C=Z • C-1 , y • R-2, C=am 2006 Dubuque Road Right -of -Way Vacate Noe Sibrian Page 24 of 405 City of Waterloo Planning, Programming and Zoning Commission November 10, 2015 2006 Dubuque Road Right -of -Way Vacate Noe Sibrian Page 25 of 405 w.' 14--"IlliL 1�+� ,�,/ -T� �erE'r�00 50 25 0 so `O� (Feet 9200-000 (614') 0609—S£Z (6l£) :auoud LOCOS omol • 969 xo8 -0'd • anuany Ryisianiu0 SOLI .out `6uiAanang pue 6uueaui6u3 uassee13 auABM `) SNOISIn. sma- '0 0 'J39 0000 a3uo 060 Svc atlW 00 0000N 0Ne WAYNE CLAASSEN ENGINEERING AND SURVEYING, INC. PHONE: (VOICE) 319-235-6294 P.O. BOX 898 WATERLOO, IOWA 50704-0898 (FAX) 319-235-0028 PLAT OF SURVEY PARCEL "D" PART OF BLOCK 5 COWIN'S 2ND ADDITION, WATERLOO, BLACK HAWK COUNTY, IOWA SURVEY FOR: NOE I. SIBRIAN & SELIVY SIBRIAN LEGAL DESCRIPTION PARCEL "D" SHEET 1 OF 2 That part of Block Five (5), Cowin's 2nd Addition to Waterloo, Iowa, described as follows: Commencing at the Southwest corner of aforesaid Block Five (5); thence N88'51'26"E Two Hundred Fifteen and Fifty—four Hundredths (215.54) feet along the South line of said Block Five (5) to the Southeast corner of parcel described in Document No. 2016-03074 in the Black Hawk County Recorder's Office and to the point of beginning; thence continue N88'51'26"E Twenty and Sixty—five Hundredths (20.65) feet still along said South line; thence Northwesterly Two Hundred Fifty—nine and Eighty Hundredths (259.80) feet along the arc of a curve concave Southerly having a radius of Seven Hundred Thirty—nine and Sixty Hundredths (739.60) feet and a long chord of Two Hundred Fifty—eight and Forty—seven Hundredths (258.47) feet which bears N61'33'54"W; thence S26'46'23"W Thirteen and Fourteen Hundredths (13.14) feet to the Northeasterly line of aforesaid parcel; thence Southeasterly Two Hundred Forty—one and Twenty—six Hundredths (241.26) feet along said Northeasterly line and along the arc of a curve concave Southerly having a radius of Seven Hundred Twenty—six and Sixty Hundredths (726.60) feet and a long chord of Two Hundred Forty and Fifteen Hundredths (240.15) feet which bears 56216'04"E to the point of beginning containing 3257 square feet. NOTES: 1. The basis of bearings for this Plat of Survey is the South line of Block 5 Cowin's 2nd Addition assigned an assumed bearing of N88'51'25"E. C E S FIELD BOOK 722-26 ON 3113 S30 r This Plat or Subdivision has been reviewed by (City of Waterloo) Signature of (City of Waterloo) Date Zoning Ordinance Administrator CERTIFICATION I hereby certify that this land surveying document was prepared and the related survey work was performed by me or under my direct personal supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Iowa. Date of Survey November ?, 2015 Signature: David L Schell, LS. Date: , 20 License No 16775 Pages or Sheets Covered by this Seal: 2 My license renewal date is December 31. 2016 Nage 2 of 405 WAYNE CLAASSEN ENGINEERING AND SURVEYING, INC. P.O. BOX 898 WATERLOO, IOWA 50704-0898 PHONE: (VOICE) 319-235-6294 (FAX) 319-235-0028 0 50 1 INCH = 50 FEET PLAT OF SURVEY PARCEL "D" PART OF BLOCK 5 COWIN'S 2ND ADDITION, WATERLOO, BLACK HAWK COUNTY, IOWA SURVEY FOR: NOE I. SIBRIAN & SELIVY SIBRIAN CURVE TABLE DIMENSIONS IN FEET CURVE LENGTH RADIUS DELTA CHORD CHORD B. Cl (246.76) (726.60)'19°27'28") (245.57) (S62'29'05"E) 726.6 245.8 C2 (259.80) (739.60)(20°07'36' (258.47)(N61°33'54"W) C3 (241.26) (726.60)'19'01'27") (240.15) (56716'04"E) 726.6 O UJ F- W W I— (n 0 LL1 z 6 n 0 zz FOUND 5/3" REBAR w• BLOCK 5 - COWIN'S 2ND ADDITION m NOE I. SIBRIAN & SELNY SIBRIAN PARCEL 'D" (3257 SQUARE FEET) PROPRIETORS: 0, DOCUMENT No. FOUND 1/2" 2016-03074 ii/—REBAR 215.7' (N88'51'26"E-215.541 70' LOT 1 co 35' C E SHELD BOOK 35' LOT 35' 35' (S88'51'55"W-210.01') 722-26 2 35' Vf1/�YV RO,1 SURVEY LEGEND: SHEET 2 OF 2...%•,\ • DENOTES FOUND PIN & YELLOW CAP #8033 (UNLESS NOTED OTHERWISE) O DENOTES 1/2" X 24" STEEL REBAR W/ RED PLASTIC CAP W/ NO. 16775 SET 000.00 DENOTES RECORD DIMENSION (000.00) DENOTES FIELD DIMENSION PROPRIETOR: CITY OF WATERLOO 35' BLOCK 2 LINDEN LACE 35' 35' LOT 3 35' 35' (20.65') (N88'51'26"E) 35' LOT 4 35' 10' LOT 5 FOUND 1' CUP PIN MULBERRY STREET (60' R/W) 'ON 3113 S33 Nage 2. of 405 2006 Dubuque Rd — Right -of -Way Vacate Request Looking at the area of right-of-way that is being proposed to be vacated. Page 29 of 405 Pref red by: Tim Andera, City of Waterloo. 715 Mulberry Street. Waterloo. IA 50703 ( 319) 291-4366 DEVELOPMENT AGREEMENT This Agreement is made and entered into this day of 2017, by and between Noe I. Sibrian and Selivy Sibrian, husband and wife, hereafter called "Developer", and the City of Waterloo, Iowa, hereinafter called "City". WHEREAS, City considers development within the City a benefit to the community and is willing for the total good and welfare of the community to sell city -owned property not needed for current or future public purposes so as to encourage that goal, and WHEREAS, Developer is willing to purchase vacated City right-of-way in the amount of $1,000.00, and legally described on attached Exhibit "A", located adjacent to 2006 Dubuque Road (hereinafter the "Property"). NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS HEREINAFTER CONTAINED, Developer and City agree as follows: 1. The City agrees to convey the Property to Developer for $1,000.00, plus costs. The City shall convey the Property to Developer by Quit Claim Deed. The Property has a full appraised value of $2,500.00, but the City agreed to grant Developer a credit of $2500.00 against the full appraised value for the Developer's survey costs ($2,800.00), which is permitted by the City of Waterloo Sale of Property Policy, on the condition that Developer pay the City $1,000.00 to cover the cost of the appraisal. Developer shall construct storm water improvements and bring vehicular use areas into compliance with the City of Waterloo Zoning Ordinance,(hereinafter "Improvements"), and take out necessary permits within twelve months of the date of this agreement. The Improvements shall be constructed in accordance with all applicable City, State, and Federal building codes and be in compliance with all applicable city ordinances. 2. NOTICE: All notices, request, and other communication permitted or required herein shall be in writing and shall be effective when delivered to the addressee in person or when sent to such address by United States registered or certified mail, return receipt requited, postage prepaid, or by hand delivery, addressed as follows: For the City: Mayor Quentin Hart City Hall 715 Mulberry Street Waterloo, Iowa 50703 1 Page 30 of 405 By: By: With copy to City Planner For Developer: Noe I. Sibrian and Selivy Sibrian 425 Independence Avenue Waterloo, Iowa 50703 3. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon the successors and assigns of Developer. 4. IN WITNESS WHEREOF, the parties have executed this Agreement the date and year written above. Noe Sibrian Seli CITY OF WATERLOO, IOWA By: Date Date Quentin Hart, Mayor Date ATTEST: Kelley Felchle, City Clerk Date 2 Page 31 of 405 Exhibit "A" Legal Description — Portion of Right -of -Way to be Conveyed That part of Block Five (5), Cowin's 2nd Addition to Waterloo, Iowa, described as follows: Commencing at the Southwest corner of aforesaid Block Five (5); thence N88°51'26"E Two Hundred Fifteen and Fifty-four Hundredths (215.54) feet along the South line of said Block Five (5) to the Southeast corner of parcel described in Document No. 2016-03074 in the Black Hawk County Recorder's Office and to the point of beginning; thence continue N88°51'26"E Twenty and Sixty-five Hundredths (20.65) feet still along said South line; thence Northwesterly Two Hundred Fifty-nine and Eighty Hundredths (259.80) feet along the arc of a curve concave Southerly having a radius of Seven Hundred Thirty-nine and Sixty Hundredths (739.60) feet and a long chord of Two Hundred Fifty-eight and Forty-seven Hundredths (258.47) feet which bears N61 °33'54"W; thence S26°46'23"W Thirteen and Fourteen Hundredths (13.14) feet to the Northeasterly line of aforesaid parcel; thence Southeasterly Two Hundred Forty-one and Twenty-six Hundredths (241.26) feet along said Northeasterly line and along the arc of a curve concave Southerly having a radius of Seven Hundred Twenty-six and Sixty Hundredths (726.60) feet and a long chord of Two Hundred Forty and Fifteen Hundredths (240.15) feet which bears S62°16'04"E to the point of beginning containing 3,257 square feet. 3 Page 32 of 405 CITY OF WATERLOO Council Communication Resolution setting a date of public hearing as March 6, 2017 for the sale and conveyance of city owned property located at 515 E. 3rd Street, 519 E. 3rd Street, 516 Pine Street, and 521 Pine Street, to JSA Development, LLC, in the amount of $1.00, and authorize City Clerk to publish said notice. City Council Meeting: 2/20/2017 Prepared: 2/17/2017 REVIEWERS: Department Planning & Zoning Clerk Office Reviewer Schroeder, Aric Felchle, Kelley Action Approved Approved ATTACHMENTS: Description Type D JSA Walnut Development Agreement Backup Material SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Date 2/17/2017 - 10:26 AM 2/17/2017 - 1:12 PM Resolution setting a date of public hearing as March 6, 2017 for the sale and conveyance of city owned property located at 515 E. 3rd Street, 519 E. 3rd Street, 516 Pine Street, and 521 Pine Street, to JSA Development, LLC, in the amount of $1.00, and authorize City Clerk to publish said notice. Submitted By: Noel Anderson, Community Planning & Development Director Set date of hearing The City of Waterloo has agrressively gone after blighted and vacant homes, including these listed in the Walnut Neighborhood area. With renewed interest by Habitat for Humanity, the Walnut Neighborhood Association, and JSA Development, this partnership and agreement works to begin many rehabilitations of homes in the area. This saves the City approximately $8,000-$10,000 in demolition costs per structure, annual maintenance for snow removal and mowing, and restores tax base, investment, and stability back to this vital neighborhood. The City currently owns three of the four properties noted. The fourth would be acquired, with the City retaining the lot along Franklin Street (with billboard) for future projects. The remaining part of the property acquired works to help parking setup for both 515 and 519 East 3rd Street renovations. The City will also be updating a historic survey for the area, which should help for this project, as well as potential future projects for rehabilitation of homes to this area (estimated at $16,000 to $20,000). $60,000 in acquisition costs, $16,000-$20,000 in historic survey costs Page 33 of 405 Source of Funds: TIF and bond funds Policy Issue: Historic and Neighborhood Revitalization and Economic Development Alternative: NA Background Information: See summary Legal Descriptions: See attached Page 34 of 405 Prepared by Christopher S. Wendland, P.O. Box 596, Waterloo, IA 50704. Phone (319) 234-5701 DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of 2017 by and between the City of Waterloo, Iowa ("City") and JSA Development, LLC ("Company"). RECITALS A. City considers economic development and rehabilitation of historic properties within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. B. Company proposes to make significant renovations to certain historic residences in the Walnut Historic Neighborhood, proposing to invest over $1,200,000 to rehabilitate them up to modern standards appropriate for a federally and state qualified historic rehabilitation, as well as related parking and landscaping (collectively, the "Improvements"). Said properties are identified on Exhibit "A" attached hereto (the "Properties") and are located in the East Waterloo Unified Urban Renewal and Redevelopment Plan Area, which includes the former Logan Plaza Urban Renewal and Redevelopment Plan Area. C. City believes that development of the projects is in the vital and best interests of the City and in accordance with the public purposes and provisions of the applicable State and local laws and requirements under which the projects have been or will be undertaken and are being assisted. NOW, THEREFORE, in consideration of the premises and of other consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree to amend the Agreement as follows: 1. Documentation and Establishment of a National Register of Historic Places District. City will appropriate all funds necessary to finance the hiring of an appropriately qualified historical consultant to prepare, complete, submit and oversee through approval, all documentation necessary to establish a Walnut Historic Neighborhood National Register of Historic Places District (the "District"). The selected consultant will be engaged by no later than March 31, 2017. The National Park Service approval process will be completed expediently after the completion of the historic survey and district designation by consultant. In support of Page 35 of 405 this effort, City agrees to implement a building demolition moratorium in the proposed District area, effective for a minimum period of two (2) years. City also agrees to evaluate and meet with neighborhood representatives on a potential design review overlay in the proposed District. 2. Property Conveyances. City will convey title to each of the Properties to Company by Special Warranty Deed for $1.00, as set forth more particularly in the paragraphs below. Company and City shall equally share the costs of preparation and updates to abstracts of title. Before conveyance, Company will have an opportunity to assess the condition of each property and determine the financial feasibility of undertaking the rehabilitation project for that property. Company will confirm to City in writing whether or not it will accept a given property, and if Company declines to accept a property the parties will cooperate in good faith to identify a substitute property to be included under the terms of this Addendum. A. 519 E. 3rd Street. Said property will be conveyed within thirty (30) days following the date this Agreement is approved by the Waterloo City Council, following title review and any work necessary to clear title. Concurrently with conveyance of 519 E. 3rd Street, City will convey such interest as it then possesses in the Center Lot (defined below). B. Other Historic Properties. City will work diligently to acquire marketable title to each of the Properties, other than 519 E. 3rd Street which is already under City ownership. Each of the Properties will be conveyed to Company as promptly as possible after request from Company, with a closing date to be determined by mutual agreement, except that City will convey the property located at 515 E. 3rd Street, the abutting parcel currently owned by City (the "Center Lot") at the center of the block that has no address or tax parcel identification number, and abutting parcel no. 8913-24-312- 014, on the terms set forth in this Section, within thirty (30) days of the City acquiring title. In lieu of City acquiring title to 515 E. 3rd Street and parcel no. 8913-24-312-014, Company may negotiate for the purchase of same from the current owner and thereafter obtain reimbursement from City for the net acquisition cost within thirty (30) days after Company delivers to City a copy of the closing statement. Title from City to interests in the Center Lot remaining after the conveyance provided for in paragraph A above shall be conveyed concurrently with City's conveyance of 515 E. 3rd Street or within thirty (30) days after written request from Company. 3. Right of First Refusal. City hereby grants to Company a right of first refusal to acquire other residentially zoned City -owned property within the District, with the exception of 222 Walnut Street and abutting parking lot (parcels 8913-24-308-006 and 8913-24-308-025. Provided that the parties enter into a development agreement with respect to any such property, then the purchase price will not exceed $5,000, otherwise the purchase price will be the lesser of assessed value or appraised market value. 4. Easement. Concurrently with its purchase of 515 E. 3rd Street, City shall purchase adjacent property known as assessor parcel no. 8913-24-312-009 (the "Franklin Parcel"). City shall grant to Company, its successors and assigns, a 20 -foot wide easement for pedestrian and vehicular ingress and egress across the Franklin Parcel. If the City fails to acquire title to the Franklin Parcel by June 30, 2017 as set forth in Section 2.B above, then Company shall be free to acquire title directly from the current owner and thereafter obtain reimbursement from City for the net acquisition cost. 5. Grants to Support Rehabilitation. City will grant Company $10,000 upon completion of the historic rehabilitation for each Property in accordance with City of Waterloo 2 Page 36 of 405 Sale of 657A Property policy or otherwise as a redevelopment incentive. Completion shall be evidenced by City's issuance of a certificate of occupancy, which shall not be unreasonably withheld, conditioned or delayed. In addition, City will reimburse Company for all costs incurred by Company for asbestos testing and abatement, such payment to be made to Company within 60 days after Company's delivery of written substantiation of costs. 6. City Cooperation for Regulatory Approvals and Tax Credits. City and its departments shall provide reasonable cooperation to facilitate and expedite completion of the historic rehabilitation projects. Reasonable cooperation shall include, but not be limited to, coordination of oversight between various departments of the City (e.g., Community Planning and Development, Building Inspections, Fire, Engineering, and other relevant departments). Additionally, departments will agree to utilize the adopted Existing Building Code and recognize any utilities accommodations for flexibility that is accorded to historic structures. Departments shall reasonably assist in meeting non -City deadlines. City shall also support and advocate for variances and special permits that may be reasonable and necessary for Company to complete rehabilitation of the Properties in a manner that will achieve the goals contemplated by the parties. City agrees to execute and support any necessary historic documentation and/or applications necessary to obtain Federal or State Historic Tax credits for Company's rehabilitation projects with respect to the Properties. 7. Demolitions. If any structure in the District is identified before December 31, 2030 as suitable for demolition, City shall exercise best efforts to relocate such structure in lieu of demolition. With respect to any relocations, City will take no action the effect of which would be to prevent or jeopardize the District's designation as a National Register of Historic Places district. 8. Company Performance. The parties agree that Company intends to rehabilitate each of the Properties into market -rate duplexes for rental and that Company, in its discretion, may construct garages. Company agrees not to undertake its rehabilitation work in a manner that would prevent future conversion of any residential structure to a single-family dwelling. Company will commence work on 519 E. 3rd Street within thirty (30) days after conveyance of title, with project completion by July 31, 2018. Rehabilitation work on other Properties will be completed within 18 months of conveyance of title. By mutual agreement of City's Community Planning and Development Director and Company, deadlines may be extended by up to six months, and any extension will be specified in writing and signed by the parties. To secure Company's performance at each separate address, Company will post a separate performance bond for each address in the amount of $5,000 within ten (10) days of receiving title, and such bonds shall be released upon issuance of an occupancy permit for the respective property. 9. Option to Terminate. Company shall have the option to terminate this Agreement at any time upon delivery of written notice to City, if federal or State of Iowa programs for historic tax credits are eliminated or materially altered. For purposes of this Agreement, a material alteration includes reduction of available tax credits by more than 10% in value or any change or changes in eligibility criteria that Company, in its reasonable discretion, determines is likely to have a material adverse effect on project feasibility. 10. Minimum Assessment Agreement. Company acknowledges and agrees that it will pay when due all taxes and assessments, general or special, and all other lawful charges whatsoever levied upon or assessed or placed against each Property. Company further agrees that, prior to January 1, 2035, it will not seek or cause a reduction in the taxable valuation for a Property, which shall be fixed for assessment purposes, below the aggregate amount of $95,000 for each Property ("Minimum Actual Value"), through: 3 Page 37 of 405 (i) willful destruction of the Property, the Improvements, or any part of either; (ii) a request to the assessor of Black Hawk County; or (iii) any proceedings, whether administrative, legal, or equitable, with any administrative body or court within the City, Black Hawk County, the State of Iowa, or the federal government. At closing Company agrees to execute and deliver a minimum assessment agreement in the form attached hereto as Exhibit "B". 11. CURA Tax Exemptions. Provided that the Company has prepared and submitted required documents upon completion of work on a given Property in accordance with the terms of the City's Consolidated Urban Renewal Area ("CURA") property tax exemption program, City will grant and affirmatively support Company's receipt of property tax exemptions of 100% for any taxable value over the taxable value in effect immediately prior to commencement of improvements for the first three years following completion of rehabilitation. Completion of a rehabilitation project shall be determined by notice of completion delivered to City by the Company. Because the Properties are residential, they will not be eligible for tax rebates under current City policy. If, within seven (7) years after CURA exemptions expire with respect to any Property, City policy is modified to allow rebates for residential projects, then the parties will negotiate in good faith on a rebate schedule for the Properties. 12. Representations and Warranties of City. City hereby represents and warrants as follows: A. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Each person who executes and delivers this Agreement and all documents to be delivered hereunder is and shall be authorized to do so on behalf of City. 13. Representations and Warranties of Company. Company hereby represents and warrants as follows: A. Company is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Company is duly organized, validly existing, and in good standing under the laws of the state of its organization and is duly qualified and in good standing under the laws of the State of Iowa. C. Company has full right, title, and authority to execute and perform this Agreement and to consummate all of the transactions contemplated herein, and each person who executes and delivers this Agreement and all documents to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 14. Obligations Contingent. Each and every obligation of City under this Agreement is expressly made subject to and contingent upon City's completion of all 4 Page 38 of 405 procedures, hearings and approvals deemed necessary by City or its legal counsel for amendment of the urban renewal plan applicable to the Properties and/or project area, all of which must be completed within 180 days from the date this Agreement is approved by the City council. If such completion does not occur, then any conveyance, benefit or incentive of any type provided by City hereunder within said 180 -day period is subject to reverter of title, revocation, repayment or other appropriate action to restore such property, benefit or incentive to City, and Company agrees to cooperate diligently and in good faith with any reasonable request by City to effectuate the restoration of same, or failing such restoration Company agrees to be liable for same or for the fair value thereof, plus interest on any sums owing at the rate of 10% per annum commencing with the date of demand for payment, if said payment is not remitted to City within 30 days. 15. Materiality of Company's Promises, Covenants, Representations, and Warranties. Each and every promise, covenant, representation, and warranty set forth in this Agreement on the part of Company to be performed is a material term of this Agreement, and each and every such promise, covenant, representation, and warranty constitutes a material inducement for City to enter this Agreement. Company acknowledges that without such promises, covenants, representations, and warranties, City would not have entered this Agreement. Upon breach of any promise or covenant, or in the event of the incorrectness or falsity of any representation or warranty, City may, at its sole option and in addition to any other right or remedy available to it, terminate this Agreement and declare it null and void. 16. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director. (b) if to Company, at 315 E. 5th Street, Waterloo, Iowa 50703, facsimile number 319-234-5701, Attention: James E. Walsh, Jr. Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. A party may change the address for giving notice by any method set forth in this section. 17. No Joint Venture. Nothing in this Agreement shall, or shall be deemed or construed to, create or constitute any joint venture, partnership, agency, employment, or any other relationship between the City and Company nor to create any liability for one party with respect to the liabilities or obligations of the other party or any other person. 18. Amendment, Modification, and Waiver. No amendment, modification, or waiver of any condition, provision, or term of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or by the duly authorized representative of same, and specifying with particularity the extent and nature of the 5 Page 39 of 405 amendment, modification, or waiver. Any waiver by any party of any default by another party shall not affect or impair any rights arising from any subsequent default. 19. Severability. Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any portion of this Agreement shall be deemed invalid or unenforceable, whether in whole or in part, the offending provision or part thereof shall be deemed severed from this Agreement and the remaining provisions of this Agreement shall not be affected thereby and shall continue in full force and effect. If, for any reason, a court finds that any portion of this Agreement is invalid or unenforceable as written, but that by limiting such provision or portion thereof it would become valid and enforceable, then such provision or portion thereof shall be deemed to be written, and shall be construed and enforced, as so limited. 20. Captions. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and/or reference, and they shall in no way be construed as limiting, extending, or describing either the scope or intent of this Agreement or of any provisions hereof. 21. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 22. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. 23. Entire Agreement. This Agreement, together with the exhibits attached hereto, constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 24. Time of Essence. Time is of the essence of this Agreement. IN WITNESS WHEREOF, the parties have executed this Development Agreement by their duly authorized representatives as of the date first set forth above. JSA DEVELOPMENT, LLC CITY OF WATERLOO, IOWA By: By: James E. Walsh, Jr., Manager, Quentin Hart, Mayor Attest: 6 Kelley Felchle, City Clerk Page 40 of 405 STATE OF IOWA ) ) ss. BLACK HAWK COUNTY ) This record was acknowledged before me on , 2017, by James E. Walsh, Jr. as Manager of JSA Development, LLC. Notary Public STATE OF IOWA ) ) ss. BLACK HAWK COUNTY ) This record was acknowledged before me on , 2017, by Quentin Hart and Kelley Felchle, as Mayor and City Clerk, respectively, of the City of Waterloo, Iowa. Notary Public 7 Page 41 of 405 EXHIBIT "A" Descriptions of Property in Walnut Historic Neighborhood 1. 519 E. 3rd Street. COOLEY ADDITION, SW 30 FT LOT 4 BLK 63, SW 5 FT NE 30 FT SE 97.3 FT OF LOT 4 BLK 63, and NE 15 FT LOT 5 BLK 63. 2. 516 Pine Street. COOLEY ADDITION, E 40 FT N 75 FT LOT 6 BLK 72 AND 10 FT ADJ ON EAST. 3. 521 Pine Street. COOLEY ADDITION, W 50 FT LOT 1 BLK 68, and W 50 FT S 30 FT LOT 2 BLK 68. 4. 515 E. 3rd Street. COOLEY ADDITION, SW 45 FT LOT 5 BLK 63, and NE 5 FT SE 75 FT LOT 8 BLK 63 The minimum assessed value for each of the above properties upon completion of improvements as set forth in the Agreement shall be $95,000. Page 42 of 405 EXHIBIT "B" MINIMUM ASSESSMENT AGREEMENT (for use with Walnut Historic Neighborhood properties) This Minimum Assessment Agreement (the "Agreement") is entered into as of , 2017 by and among the CITY OF WATERLOO, IOWA, ("City"), JSA Development, LLC, ("Company"), and the COUNTY ASSESSOR of the City of Waterloo, Iowa ("Assessor"). WITNESSETH: WHEREAS, on or before the date hereof the City and Company have entered into a Development Agreement (the "Development Agreement") regarding certain real property located in the City; and WHEREAS, it is contemplated that pursuant to the Development Agreement, the Company will undertake the development of an area (the "Project") within the City and within the East Waterloo Unified Urban Renewal and Redevelopment Plan Area, formerly known as the Logan Plaza Urban Renewal and Redevelopment Plan Area; and WHEREAS, pursuant to Iowa Code section 403.6, as amended, the City and the Company desire to establish a minimum actual value for the land and building(s) thereon pursuant to the Development Agreement and applicable only to the development, which shall be effective upon substantial completion of the development and from then until this Agreement is terminated pursuant to the terms herein and which is intended to reflect the minimum actual value of the land and building(s) as to the development only; and WHEREAS, the City and the Assessor have reviewed the plans and specifications for the improvements (the "Improvements") and the work completed as a part of the development; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each other, do hereby agree as follows: 1. Upon substantial completion of construction of the Improvements by the Company or its affiliated companies on each of the properties described in Exhibit "A" attached hereto, the minimum actual taxable value which shall be fixed for assessment purposes for the land and Improvements constructed on each such property as a part of the Project shall not be less than $95,000 for each property ("Minimum Actual Value") until termination of this Agreement. With respect to each property, the parties agree to execute a supplement to this Agreement, substantially in the form attached hereto as "MAA Supplement Form 1", no later than December 31 of the year in which substantial completion of construction of Improvements for a given property occurs. The parties also acknowledge that the Company may submit one or more of the properties to a condominium regime after completion of the Improvements and that future owners of any such property as so divided are intended to be the beneficiaries of this Agreement and a related Development Agreement. 2. The Minimum Actual Value herein established with respect to a given property shall be of no further force and effect, and with respect to such property this Agreement shall terminate, on December 31, 2034. Page 43 of 405 Nothing herein shall be deemed to waive the Company's rights under Iowa Code § 403.6, as amended, to contest that portion of any actual value assignment made by the Assessor in excess of the Minimum Actual Value established herein. In no event, however, shall the Company seek or cause the reduction of the actual value assigned below the Minimum Actual Value established herein during the term of this Agreement. 3. This Agreement shall be promptly recorded by the City with the Recorder of Black Hawk County, Iowa, the City paying all costs of recording, and each supplement hereto shall be so recorded after execution. 4. Neither the preambles nor provisions of this Agreement are intended to, or shall be construed as, modifying the terms of the Development Agreement between the City and the Company. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. The City agrees to cooperate with any reasonable request by the Company to execute a written assignment of this Agreement to future owners of condominium units that may be created on any of the properties and to execute one or more amendments to this Agreement to divide the Minimum Actual Value for the property among such units and to ensure that such future owners receive the benefits contemplated by this Agreement and a related Development Agreement between the parties. CITY OF WATERLOO, IOWA JSA DEVELOPMENT, LLC By: By: Quentin Hart, Mayor James E. Walsh, Jr., Manager Attest: Kelley Felchle, City Clerk STATE OF IOWA ) ss. COUNTY OF BLACK HAWK On , 2017, before me, a Notary Public in and for the State of Iowa, personally appeared Quentin Hart and Kelley Felchle, to me personally known, who being duly being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waterloo, Iowa, a municipal corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said municipal corporation, and that said instrument was signed and sealed on behalf of said municipal corporation by authority and resolution of its City Council, and said Mayor and City Clerk 2 Page 44 of 405 acknowledged said instrument to be the free act and deed of said municipal corporation by it and by them voluntarily executed. STATE OF IOWA ) ss. COUNTY OF BLACK HAWK Notary Public Subscribed and sworn to before me on , 2017, by James E. Walsh, Jr., as Manager of JSA Development, LLC. Notary Public 3 Page 45 of 405 CERTIFICATION OF ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed for the development, and being of the opinion that the minimum market value contained in the foregoing Minimum Assessment Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the property subject to the development, upon completion of improvements to be made on it and in accordance with the Minimum Assessment Agreement, certifies that the actual value assigned to such land, building and equipment upon completion of the development shall not be less than Ninety -Five Thousand Dollars ($95,000.00) for each property identified on Exhibit "A" until termination of this Minimum Assessment Agreement pursuant to the terms hereof. STATE OF IOWA ) ss. COUNTY OF BLACK HAWK ) Assessor for Black Hawk County, Iowa Date Subscribed and sworn to before me on by T.J. Koenigsfeld, Assessor for Black Hawk County, Iowa. Notary Public Page 46 of 405 MAA SUPPLEMENT FORM 1 Supplement to Minimum Assessment Agreement (for use with Walnut Historic Neighborhood properties) This instrument is a supplement to that certain Minimum Assessment Agreement (the "Agreement") dated as of , 2017, by and between City of Waterloo, Iowa ("City") and JSA Development, LLC ("Company") and filed as Doc. No. Property Address: Tax Parcel No.: Legal Description: See attachment. Minimum Assessed Value: $95, 000.00 MAV Effective Date: January 1, This supplement is made for purposes of acknowledging the substantial completion of improvements to the above property and the establishment of Minimum Assessed Value as of the next assessment date. The Minimum Assessed Value shall be effective until and including December 31, 2034, as set forth in the Agreement. This supplement is subject to all terms and conditions of the Agreement. CITY OF WATERLOO, IOWA JSA DEVELOPMENT, LLC By: By: , Manager Title: Page 47 of 405 CITY OF WATERLOO Council Communication Resolution setting date of public hearing as February, 27, 2017, to approve plans, specifications, form of contract, etc. for demolition services for 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408-410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 Chalmers Avenue and 1005 Chalmers Avenue, and authorize City Clerk to publish notice. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Planning & Zoning Clerk Office ATTACHMENTS: Description D RFP Demolition D Bid Specs SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Reviewer Schroeder, Aric Even, LeAnn Action Approved Approved Type Cover Memo Cover Memo Date 2/15/2017 - 2:49 PM 2/15/2017 - 2:56 PM Resolution setting date of public hearing as February, 27, 2017, to approve plans, specifications, form of contract, etc. for demolition services for 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408-410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 Chalmers Avenue and 1005 Chalmers Avenue, and authorize City Clerk to publish notice. Submitted By:Noel Anderson -Community Planning and Development Director Approval All properties were acquired through Iowa Code 657A. N/A Nuisance abatement Dilapidated housing/Nuisance abatement Page 48 of 405 CITY OF WATERLOO, IOWA Request for Bid February 2017 DEMOLITION AND SITE CLEARANCE SERVICES [no regulated asbestos -containing materials (no RACM)] 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. City of Waterloo, Iowa Prepared by City of Waterloo Planning and Zoning Department Page 49 of 405 SECTION I NOTICE OF REQUEST FOR BID 1.0 Receipt and Opening of Bid The City of Waterloo is seeking sealed bids for the demolition, removal and disposal of 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. 1.1 All bids must be received in a sealed envelope in City Hall (date and time stamped) by Thursday February 16, 2017 at 1:00 p.m. (our clock), Central Time, in order to be considered. City Hall is located at 715 Mulberry St, Waterloo, Iowa. Bids sent electronically or via facsimile will not be accepted. The mailing container or envelope shall be plainly marked on the outside with the notation `SEALED RFP FOR DEMOLITION AND SITE CLEARANCE SERVICES — 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue, and the name of the company submitting the bid. RFP Timeline Name of the Bid: Notice of RFP Date: DEMOLITION AND SITE CLEARANCE SERVICES- 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. Wednesday February 1, 2017 Walk thru Date: No mandatory walk thru; however you may call to see any property at any time Deadline for Bid Submittal: Thursday February 16, 2017 at 1:00 p.m., Central Time Submit Sealed Bid to: SEALED RFP FOR DEMOLITION AND SITE CLEARANCE SERVICES (no RACM) 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. Address exactly as stated-* -* -* Method of Submittal: Contact Person, Title: E-mail Address: Phone/ Fax Numbers: City Hall City Clerk's Office 715 Mulberry Street Waterloo, IA 50703 Mail or Overnight Delivery, In Person (No Electronic or Fax Submittals) Chris Western, Planner/Project Manager chris.western©waterloo-ia. orq Phone: 319-291-4366 Fax: 319-291-4262 RFP FOR DEMOLITION SERVICES (no RACM) 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 LogarJA6 e5b28f 405 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. 1.2 The City reserves the right to accept or reject any or all bids and to waive any informalities or irregularities in bids if such waiver does not substantially change the offer or provide a competitive advantage to any Bidder. The City reserves the right to defer acceptance of any bid for a period not to exceed sixty (60) calendar days from the date of the deadline for receiving bids. 1.3 The City is not responsible for delays occasioned by the U.S. Postal Service, the internal mail delivery system of the City, or any other means of delivery employed by the Bidder. Similarly, the City is not responsible for, and will not open, any bid responses that are received later than the date and time stated above. Late bids will be retained in the RFP file, unopened. No responsibility will be attached to any person for premature opening of a bid not properly identified. 1.4 Bids will be opened on Thursday February 16, 2017, at 1:00 pm (our clock) Central Time in City Hall, 715 Mulberry Street, Waterloo. The main purpose of this opening is to reveal the name(s) of the Bidder(s), not to serve as a forum for determining the awarded bid(s). 1.5 Bids will be evaluated promptly after opening. After an award is made, a bid summary will be sent to all companies who submitted a bid. Bids may be withdrawn anytime prior to the scheduled closing time for receipt of bids; no bid may be modified or withdrawn for a period of sixty (60) calendar days thereafter. SECTION II INSTRUCTIONS TO BIDDERS 2.0 The Bid shall include the attached Exhibit "A" signature page, properly completed. A company representative who is authorized to bind the company will sign on behalf of the company to indicate to the City that you have read all provisions of the RFP and agree to all terms and conditions, except as provided in paragraph 2.4 below. By making a Bid, the Bidder represents that they have examined the subject property. Any questions about the meaning or intent of the specifications must be submitted by the Deadline for Questions listed above. The City of Waterloo reserves the right to reject any or all bids, and to accept in whole or in part, the bid, which, in the judgment of the bid evaluators, is the most responsive and responsible bid. 2.1 General Liability Insurance with limits of liability of at least $1,000,000 per occurrence for Bodily Injury and Property Damage. At a minimum, coverage for Premises, Operations, Products and Completed Operations shall be included. This coverage shall protect the public or any person from injury or property damages sustained by reason of the contractor or its employees carrying out their work. 2.1.1 The City reserves the right to require increased liability limits, not to exceed Fifteen Million Dollars ($15,000,000) from bidders, should the project represent an elevated hazard level to the City as determined by the Insurance Committee. 2.1.2 Commercial General Liability Insurance Policy, including but not limited to, insurance for premises construction operations (when applicable), contractual liability, completed operations with respect to liability arising RFP FOR DEMOLITION SERVICES (no RACM) 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 Logarp%6§ e51128f 405 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. out of the ownership, use, occupancy or maintenance of the premises and all areas appurtenant thereto, to afford protection with respect to bodily injury, personal injury, death or property damage of not less than One Million Dollars ($1,000,000) per occurrence combined single limit/Two Million Dollars ($2,000,000) general aggregate. 2.1.3 Comprehensive Automobile Liability Insurance Policy with limits for each occurrence of not less than One Million Dollars ($1,000,000) Combined Single Limit with respect to bodily injury, property damage or death. 2.1.4 Workers Compensation Insurance Policy or similar insurance in form and amounts required by law. 2.1.5 Coverage must be maintained by a financially stable carrier with a minimum AM Best rating of A- or above. It will be the outside party's responsibility to provide proof of their carriers rating. 2.1.6 The City of Waterloo, Iowa will be named as an additional insured with respect to all casualty insurance policies. 2.1.7 Certificate of insurance will be submitted to the City Clerk prior to commencement of the contract/agreement and shall include a thirty -day notice of cancellation provision. 2.1.8 If the outside party fails to perform any of its obligations under the City's Insurance and Policy Requirements, Waterloo reserves the right to either purchase the required insurance coverage and assess the cost directly to the outside party, or to declare the outside party's bid invalid. 2.2 Bonds 2.2.1 A guarantee from each Bidder equivalent to five percent (5%) of the price is required. The guarantee shall consist of a firm commitment, such as a bond, certified check, or other negotiable instrument acceptable to the City, as assurance that the Bidder will, upon acceptance of its, execute such contractual documents as may be required within the time specified. 2.2.2 Successful Bidder will be required to furnish bond in an amount equal to one hundred percent (100%) of the contract price and shall be issued by a responsible surety acceptable to the City. The bond shall guarantee the faithful performance of the contract and the terms and conditions therein contained, shall guarantee the prompt payment of all materials and labor and protect and save harmless the City from claims and damages of any kind arising out of the performance of this contract. 2.3 This Request for Bid does not commit the City to make an award, nor will the City pay any costs incurred in the preparation and submission of bids, or costs incurred in making necessary studies for the preparation of bids. 2.4 Important Exceptions to Contract Documents - The Bidder shall clearly state in the submitted bid any exceptions to, or deviations from, the minimum bid requirements, and any exceptions to the terms and conditions of this RFP. Such exceptions or deviations will be considered in evaluating the bids. Any exceptions should be noted on the Signature Page. Companies are cautioned that exceptions taken to this RFP may cause their bid to be rejected. No additional exceptions shall be allowed after submittal of a bid. RFP FOR DEMOLITION SERVICES (no RACM) 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 LogarJA6 e5228f 405 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. 2.5 Incomplete Information - Failure to complete or provide any of the information requested in this RFP, including references, and/or additional information as indicated, may result in disqualification by reason of "non responsiveness". SECTION III SPECIAL TERMS AND CONDITIONS 3.0 Term of Contract 3.0.1 The initial term of the Contract shall be for eight (6) weeks, anticipated to be from the end of the IDNR 10 Day Notice period starting (March 13, 2017) to (April 21, 2017). 3.0.2 A Contract, approved by the City Council and signed by the Mayor, shall become the document that authorizes the Contract to begin, assuming the insurance requirements have been met. Each section contained herein, any addenda and the response (Bid) from the successful bidder shall also be incorporated by reference into the resulting Contract. 3.0.3 No price escalation will be allowed during the initial term of the Contract. If it is mutually decided to renew beyond the initial period and the Contractor requests a price increase, the Contractor shall provide documentation on the requested increase. The City reserves the right to accept or reject price increases, to negotiate more favorable terms, or to terminate (or allow to expire) without cost, the future performance of the Contract. 3.0.4 The total actual expenses shall not exceed the amount allowed by the project Contract, including any renewal extensions thereof, unless amended by written agreement. 3.1 Agreement Forms 3.1.1 After award, the Bidder will be required to enter into a written contract with the City. 3.1.2. Termination for Cause. In the event that Contractor defaults in the performance or observance of any covenant, agreement or obligation set forth in the Contract, and if such default remains uncured for a period of seven (7) days after notice thereof shall have been given by City to Contractor (or for a period of fourteen (14) days after such notice if such default is curable but requires acts to be done or conditions to be remedied which, by their nature, cannot be done or remedied within such 14 -day period and thereafter Contractor fails to diligently and continuously prosecute the same to completion within such 14 -day period), then City may declare that Contractor is in default under the Contract. 3.1.3 Termination for Convenience. The Contract may be terminated at any time, in whole or in part, upon the mutual written agreement of the parties. City may also choose to terminate the Contract at any time by delivering to Contractor 10 -days' advance written notice of intent to terminate. 3.1.4 Remedies. If Contractor is in default of the Contract and has not cured said default as set forth in Section 3.1.2 above, the City may take any one or more of the following steps, at its option: 3.1.4.1 by mandamus or other suit, action or proceeding at law or in equity, require Contractor to perform its obligations and covenants under the Contract, or enjoin any acts or things which may be unlawful or in violation of the rights of the City under the Contract, or obtain damages caused to the City by any such default; 3.1.4.2 have access to and inspect, examine and make copies of all books and records of Contractor which pertain to the project; RFP FOR DEMOLITION SERVICES (no RACM) 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 LogaFA6e51828f 405 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. 3.1.4.3 declare a default of the Contract, make no further disbursements, and demand immediate repayment from Contractor of any funds previously disbursed under the Contract; 3.1.4.4 terminate the Contract by delivering to Contractor a written notice of termination; and/or 3.1.4.5 take whatever other action at law or in equity may be necessary or desirable to enforce the obligations and covenants of Contractor under the Contract, including but not limited to the recovery of funds. 3.1.4.6 No delay in enforcing the provisions hereof as to any breach or violation shall impair, damage or waive the right of City to enforce the same or to obtain relief against or recover for the continuation or repetition of such breach or violation or any similar breach or violation thereof at any later time or times. In the event that City prevails against Contractor in a suit or other enforcement action under the Contract, Contractor agrees to pay the reasonable attorneys' fees and expenses incurred by City. 3.2 Terms of Payment 3.2.1 Services authorized under this Contract shall be submitted as "lump sum" after services are delivered and accepted. 3.2.2 City has the right, at its discretion, to deny payment for any work by any Contractor if the total actual expenses exceed the amount allowed by the project Contract, including any renewal extensions thereof. The Contractor is not obligated to continue performance of services under this Agreement or otherwise incur costs in excess of the total actual expense allowed unless an amendment to the Contract is approved, and the City notifies the Contractor, in a written amendment, of the City's acceptance of the revised total actual expense allowed. 3.2.3 All work is to be done in strict compliance with this RFP and Demolition Specifications attached as Exhibit "B". The City may withhold payment for reasons including, but not limited to, the following: unsatisfactory job performance or progress, defective work, disputed work, failure to comply with material provisions of the Contract, third party claims filed or reasonable evidence that a claim will be filed or other reasonable cause. SECTION IV SERVICE REQUIREMENTS 4.0 Background The City of Waterloo, Iowa, is seeking bids for demolition and site clearance services for: 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. 4.1 Scope of Work The City of Waterloo is seeking a qualified demolition contractor to demolish the structures and clear the site. The Bidder understands and agrees that demolition and debris removal in the most expeditious manner possible is of the utmost importance and it will make every effort to complete all requirements of the Contract in the shortest time possible. The services to be performed under this Contract shall consist of the work described in the separate "Demolition Specifications" document (attached Exhibit "B") and shall be performed according to the standards set forth therein and herein. Any reference in this RFP to "this specification" shall include such Demolition Specifications. Bidder shall be responsible to RFP FOR DEMOLITION SERVICES (no RACM) 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 LogarJA6 e51428f 405 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. familiarize itself with the specifications and to make a personal examination of the job site(s) and the physical conditions that may affect its ding and performance under the contract. Important note: The structures are currently being abated of asbestos, and upon notice to proceed the property will be deemed to be clear of, or have been abated for, asbestos containing materials (ACM) and may be handled as such. 4.2 Silence of Specifications — Commercially accepted practices shall apply to any detail not covered in this specification and to any omission of this specification. Any omission or question of interpretation of the specification that affects the performance or integrity of the service being offered shall be addressed in writing and submitted with the Bid. SECTION V METHOD OF EVALUATION 5.0 Contract Award - Any Contract award(s) made by the City of Waterloo is subject to prior approval by the City of Waterloo City Council. 5.0.1 Award of Contract shall be made to the most responsible and responsive bid from a Company whose bid offers the greatest value to the City with regard to the criteria detailed and the specifications set forth herein. The City may select a Bidder based on an "all or none" bid, on individual responses, or as is otherwise deemed to be in the best interest of the City. 5.1 Financial Terms will not be the sole determining factor in the award. To determine the award, the City will award a contract to the Bidder offering services and experience that best represents the overall value to the City. 5.2 Bid Evaluation Procedures 5.3.1 Each bid will be evaluated based on experience and the evaluators judgment of how well the bid addresses the City's requirements. Each prospective company is assured that any bid submitted will be evaluated using the best available information and without any forgone conclusions. 5.3.2 Consideration will also be given to solicited written clarification provided during the evaluation process and input from staff or other persons judged to have useful expertise that should be considered in a responsible, fair assessment of the relative merits of each bid. 5.3 A Bidder's submission of a bid constitutes its acceptance of this evaluation technique and its recognition and acceptance that subjective judgments will be used by the evaluators in the evaluation. 5.4 Following the evaluation process, the award process is as follows: 5.5.1 The evaluators shall determine which bidder has submitted the best bid using the criteria set forth above, and make its recommendation to the City Council. 5.5.2 The City Council considers a resolution awarding the Contract and authorizing the Mayor to execute the Contract on behalf of the City. Note, no Contract shall be deemed to be created and exist unless and until the City Council adopts a resolution awarding the Contract and authorizes the Mayor to sign the Contract. 5.5.3 The Mayor executes the Contract. RFP FOR DEMOLITION SERVICES (no RACM) 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 LogaFA6e51528f 405 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. EXHIBIT "A" SIGNATURE PAGE 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. The undersigned Proposer/Bidder, having examined these documents and having full knowledge of the condition under which the work described herein must be performed, hereby proposes that they will fulfill the obligations contained herein in accordance with all instructions, terms, conditions, and specifications set forth; and that they will furnish all required services and pay all incidental costs in strict conformity with these documents for the stated process as payment in full. Our bid, for demolition and site clearance of the site is, not to exceed: $ Amount in written form, not to exceed: $ Submitting Firm: Address: City: State: ____ ____ Zip: _______ Authorized Representative (print) Authorized Representative Signature Date : Email: Phone: Fax: EXCEPTIONS/DEVIATIONS to this Request for Proposal shall be listed in writing on an attached document provided by the Bidder. Please be as specific as possible. Please check one: __ Our company has no exceptions/deviations. __ Our company does have exceptions/deviations which are listed on an attached document. GENERAL INFORMATION. Freight and/or delivery charges, if any, shall be included in the price. FIRM PRICING. Offered prices shall remain firm for a minimum of sixty (60) days after the due date of this solicitation unless indicated otherwise. Accepted prices shall remain firm for the duration of the contract. ADDENDA (It is the Bidder's responsibility to check for issuance of any addenda). The authorized representative herby acknowledges receipt of the following addenda: Addenda Number ___ Date ____ Addenda Number ___ Date _____ Addenda Number ___ Date ____ Addenda Number ___ Date _____ We choose not to bid at this time but would like to be considered for future requests for bid Page 56 of 405 EXHIBIT "B" CITY OF WATERLOO SPECIFICATIONS FOR DEMOLITION AND SITE CLEARANCE OF 1020 Wellington Street, 717 Fairview Street, 27 John Street, 408/410 Logan Avenue, 1120 Washington Street, 1201 Mulberry Street, 106 Woodside Drive, 1017 and 1005 Chalmers Avenue. [No Regulated asbestos containing materials (Non-RACM)] PART 1 - GENERAL 1.01 CITY REPRESENTATIVES The City's Representative for this project is: Chris Western, Planner II/Project Manager. 1.02 DESCRIPTION OF WORK Unless directed otherwise in the Contract Documents or by the Project Manager, the Contractor shall: A. Remove and properly dispose of all trees that are in close proximity of the structure and those that are marked with orange paint, structures, cement slabs, and driveways, trash, rubbish, basement walls, floors, foundations, steps, planters, retaining walls, fences, wells, cisterns, landscape features such as pools and waterers and concrete or asphalt flatwork such as sidewalks, driveways, and the like from the specified property. B. Remove any fuel tanks, outdoor toilets and septic tanks, cisterns, meter pits, and plug or abandon wells. As to cisterns, section 2.14 also applies. C. Remove the materials from the demolition site in accordance with federal, state and local regulations. D. Remove and dispose of appliances and other items that may contain refrigerants in accordance with 40 CFR, Part 82. Appliances and other items that may contain refrigerants include, but are not limited to, refrigerators, freezers, dehumidifiers and portable or central air conditioners. E. Remove and legally dispose of mercury -containing materials including fluorescent, high- pressure sodium, mercury vapor, metal halide light bulbs, and thermostats containing a liquid filled capsule. PCB -containing materials include capacitors, ballasts, and transformers where the component is contained within a metal jacket and does not have a specific, legible label stating no PCBs are present. F. Disconnect all utility services before demolition per Section 2.07. G. Perform site clearance. H. Complete the demolition work in accordance with the plans and these technical specifications. Page 57 of 405 1.03 PROTECTION OF THE PUBLIC AND PROPERTIES A. Littering Streets 1. The Contractor shall be responsible for removing any demolition debris or mud from any street, alley or right-of-way resulting from the execution of the demolition work. Any cost incurred by the City in cleaning up any litter or mud shall be charged to the Contractor and be deducted from funds due for the work. 2. Littering of the site shall not be permitted. 3. All waste materials shall be promptly removed from the site. B. Street Closure 1. If it should become necessary to close any traffic lanes, it shall be the Contractor's responsibility to acquire the necessary obstruction permits and to place adequate barricades and warning signs as required by the City. 2. Street or lane closures shall be coordinated with the appropriate City authority. C. Protection of the Public by the Contractor. A temporary fence shall be erected around all excavation, dangerous building(s) or structure(s) to prevent access to the public unless the City's Project Manager determines that the site is sufficiently secure without fencing. Such fence shall be at least four feet high, consistently restrictive from top to grade, and without horizontal openings wider than two inches. The fence shall be erected before demolition and shall not be removed until the hazard is removed. D. Noise Pollution: All construction equipment used in conjunction with this project shall be in good repair and adequately muffled. The Contractor shall comply with any noise pollution requirements of the City. E. Dust Control: The Contractor shall comply with applicable air pollution control requirements of the City's Representative. The Contractor shall take appropriate actions to minimize atmospheric pollution, and toward that objective the City's Representative shall have the authority to require that reasonable precautions be taken to prevent particulate matter from becoming airborne. Such reasonable precautions shall include, but not be limited to: 1. The use of water or chemicals for control of dusts in the demolition of existing buildings or structures, construction operations, the grading of roads, or the clearing of land. 2. Covering, at all times when in motion, open -bodied trucks transporting materials likely to give rise to airborne dusts. 2 Page 58 of 405 F. Requirements for the Reduction of Fire Hazards 1. Removal of Material: Before demolition of any part of any building, the Contractor shall remove all volatile or flammable materials, such as gasoline, kerosene, benzene, cleaning fluids, paints or thinners in containers, and similar substances. 2. Fire Extinguishing Equipment: The Contractor shall be responsible for having and maintaining the correct type and class of fire extinguisher on site. When a cutting torch or other equipment that might cause a fire is being used, a fire extinguisher shall be placed close at hand for instant use. 3. Fires: No fires of any kinds will be permitted in the demolition work area. 4. Hydrants: No material obstructions or debris shall be placed or allowed to accumulate within fifteen feet of any fire hydrant. All fire hydrants shall be accessible at all times. 5. Debris: Debris shall not be allowed to accumulate on roofs, floors, or in areas outside of and around any structure being demolished. Excess debris and materials shall be removed from the site as the work progresses. G. Protection of Public Utilities: The Contractor shall not damage existing fire hydrants, streetlights, traffic signals, power poles, telephone poles, fire alarm boxes, wire cables, pole guys, underground utilities, or other appurtenances in the vicinity of the demolition sites. The Contractor shall pay to repair or replace any damaged utilities. The Contractor shall pay for temporary relocation of utilities, which are relocated at the Contractor's request for his convenience. All below -ground utilities that are abandoned as a result of demolition shall be terminated at least two (2) feet below the finish grade of the site. H. Protection of Adjacent Property 1. The Contractor shall not damage or cause to be damaged any public right-of-way, structures, parking lots, drives, streets, sidewalks, utilities, lawns or any other property adjacent to parcels released for demolition whether or not the property is scheduled for future demolition. The Contractor shall pay to repair or replace any such damage. The Contractor shall provide such sheeting and shoring as required to protect adjacent property during demolition. Care must also be taken to prevent the spread of dust and flying particles. 2. The Contractor shall restore existing agricultural drain tiles or roadway sub drains that are cut or removed, including drainable backfill, to original condition. Repairs shall be subject to approval by the property owner where applicable, and by the City's Representative. 1.04 RISK OF LOSS 3 Page 59 of 405 A. The Contractor shall accept the site in its present condition and shall inspect the site for its character and type of structures to be demolished. The City assumes no responsibility for the condition of existing buildings, structures, and other property within the demolition area, or the condition of the property before or after the solicitation for proposals. No adjustment of proposal price or allowance for any change in conditions that occur after the acceptance of the lowest responsible, responsive proposal will be allowed. B. The Contractor acknowledges and understands that any disposal, removal, transportation or pick-up of any materials not covered under the scope of work shall be at the sole risk of the Contractor. The Contractor understands that it will be solely responsible for any liability, fees, fines, claims, etc. which may arise from its handling of materials not covered by the scope of the work. 1.05 PROPERTY OWNERSHIP A. Title: The property address will be included in the Contract Documents. Following execution of the contract, and upon issuance of Notice to Proceed with respect to a given property, for the work of demolition and site clearance on all or any part of the demolition area referenced in the Notice to Proceed, all rights, title, and interest of the City in and to buildings, structures, fixtures and other personal property to be demolished and/or removed by the Contractor on part or all of said project area as described in the Contract Documents and contract addenda thereto, shall be deemed to be vested in the Contractor. All materials are to be removed and disposed of or salvaged in conformance with these specifications. B. Land: No property rights, title, or interest of any kind whatsoever, in or to the land or premises upon which such buildings or structures stand, is created, assigned, conveyed, granted, or transferred to the Contractor, or any other person or persons, except only the license and right of entry to remove such buildings and structures in strict accordance with the Contract Documents. Contractor shall not use the land or premises, or allow any other party to use the land or premises, for any purpose other than activities in direct support of the demolition. 1.06 VACATING OF BUILDINGS The structures identified in the Contract Documents shall be vacated before a Notice to Proceed is issued and the Contractor begins work. In case the Contractor finds that any structure is not vacated, the Contractor shall immediately notify the City's Representative and shall not begin demolition or site clearance operations on such property until further directed by the City's Representative. The Contractor's responsibility for such buildings will not begin until the City's Representative issues a subsequent Notice to Proceed with Demolition Order. No claim for extension of time or increase in price will be considered because of occupancy of any buildings. In case such occupancy is prolonged, the City reserves the right to delete the structure from the work. 1.07 PERMITS AND FEES 4 Page 60 of 405 The Contractor shall obtain all the necessary permits and pay all permit fees that are required by the City or any other governmental authority in conjunction with the demolition work. 1.08 MEASUREMENT AND PAYMENT A. Demolition Work: The Contractor shall be paid the lump sum price for demolition as indicated in the proposal and as approved by the City, and this payment will be full compensation for removal of buildings, building materials, contents of buildings, appliances, trash, rubbish, basements, foundations, and steps from the site; disconnection of utilities; grading of disturbed areas; placing and removing safety fencing; removal of septic tanks and cisterns; removal or capping of wells; and other work as necessary to complete the project. B. Incidental Items: The Contractor shall provide and pay for all materials, labor, tools, equipment, transportation, temporary construction, charges, levies, fees, permits and other expenses necessary to complete this work according to the plans and specifications. PART 2 -EXECUTION 2.01 DEMOLITION SCHEDULE The Contractor shall complete the Project in an expeditious manner and shall commence work within ten (10) days after being notified by the City with a Notice to Proceed on the project (excluding any Limited Notice to Proceed). It is anticipated that the City will issue a Notice to Proceed immediately for purposes of completing required utility disconnect work. The site shall be completely fenced and secured when left unattended. If Contractor is prevented from timely completing the work because of circumstances beyond the Contractor's reasonable control as determined by the City, the time for completion of the work will be tolled for a period of time equivalent to the stoppage resulting from such circumstances. The Contractor does hereby expressly acknowledge and agree that time is of the essence of this Contract, and, thus, failure by the Contractor to timely render and perform services hereunder shall constitute a material break of the Contract. 2.02 SALVAGE OF DEMOLITION MATERIALS The Contractor shall be allowed to salvage materials from any property on this project. No salvaging shall occur on the property until after the City of Waterloo has issued a Notice to Proceed for the property. The Contractor shall assume all expense, risk, and liability for salvaging. It is preferred that the Contractor remove items to be salvaged from the premises to the Contractor's premises or other private lands for pick up by other individuals or entities. If the Contractor intends to allow any other individuals or entities to enter the property on this project to perform salvaging, the Contractor shall only do so after obtaining from the third -party salvager a certificate of insurance for general liability with limits of liability of at least $1,000,000 per occurrence for Bodily Injury and Property Damage. For entities with employees, it shall include Workers Compensation and Employers Liability Insurance meeting the requirements of the Iowa Workers Compensation Law covering all of the entity's employees carrying out their work. The Contractor and the City of Waterloo, Iowa, its officers and 5 Page 61 of 405 employees, shall be named as additional insured on the third -party salvager's general liability insurance policies and certificates of insurance 2.03 DEMOLITION AND REMOVALS A. Structural Parts of Buildings 1. No wall or part thereof shall be permitted to fall outwardly from any building except through chutes or by other controlled means or methods, which will ensure safety and minimize dust, noise and other nuisance. 2. Any part of a building, whether structural, collateral, or accessory, which has become unstable through removal of other parts, shall be removed as soon as practicable and no such unstable part shall be left free-standing or inadequately braced against all reasonably possible causes of collapse at the end of any day's work. B. Basements and Foundation Walls: Cement slabs and footings or foundations of structures without basements are to be completely removed. If basements or crawl spaces are present they must be completely removed and backfilled. C. Concrete Slabs: The Contractor shall remove all concrete slabs, asphalt, surface obstructions, masonry slabs and appurtenances, unless otherwise directed. D. Signs and Landscape Structures: Landscape structures or signs must be removed with the project. The Contractor shall employ hand labor or other suitable tools and equipment necessary to complete the work without damage to adjacent public or private property or the items noted above. Where such Landscape structures or signs are removed, the area shall be graded to match adjacent natural grade levels or as directed by the City's Representative. The cost of any tree or brush removal due to the removal and grading out of any landscape structures or signs will be considered incidental and shall be included in the lump -sum bid for demolition. E. Fences: Fences, guardrails, and similar facilities shall be completely removed from the site. All posts for support shall be pulled out or dug up so as to be entirely removed. F. Partially Buried Objects: All piping, posts, reinforcing bars, anchor bolts, railings and all other partly buried objects protruding from the ground shall be removed. The remaining void shall be filled with soil and compacted in accordance with these specifications. G. Vegetation: The Contractor shall remove all trees, and such other trees, stumps, bushes, vegetation, brush and weeds, whether standing or fallen. H. Fuel Tanks: If applicable, Fuel tanks, above or below ground, shall be carefully removed and disposed of in a safe manner in accordance with the State Fire Marshal's regulations and those of the Iowa Department of Natural Resources. 6 Page 62 of 405 1. Fuel tanks, above or below the ground, or tanks which have been used for storage of gasoline, kerosene, benzene, oils or similar volatile materials shall be carefully removed and disposed of in a safe manner. 2. All other tanks or receptacles shall be pumped out or emptied in a safe manner, and then shall be flushed out immediately with water, carbon dioxide or nitrogen gas until they are gas -free when checked with a "Explosimeter" or another equally efficient instrument, before the work of removal is begun. Checking with the "Explosimeter" shall be done in the presence of the City's Representative by competent personnel. 2.04 WELL PLUGGING AND ABANDONMENT If applicable, all drilled wells shall be plugged and abandoned in accordance with Iowa Code § 455B.190 and Iowa Administrative Code title 567, chapter 39. An Iowa Department of Natural Resources, Abandoned Water Well Plugging Record shall be filed upon completion of the well abandonment. All sand point wells shall be pulled out of the ground, or if unable to be pulled, shall be plugged in accordance with Iowa Code. 2.05 DISPOSAL OF DEMOLITION DEBRIS AND SOLID WASTE A. Acknowledgement: The Contractor acknowledges, represents and warrants to the City that it is familiar with all laws relating to disposal of the materials as stated herein and is familiar with and will comply with all applicable guidelines, requirements, laws, regulations, of any federal, state or local agencies or authorities. The Contractor acknowledges and understands that any disposal, removal, transportation or pick-up of any materials not covered under the scope of work or not in compliance with these specifications shall be at the sole risk of the Contractor. The Contractor understands that it will be solely responsible for any liability, fees, fines, claims, etc., which may arise from its handling of materials not covered by the scope of work or not in compliance with these specifications. B. Debris: All materials, rubbish, and trash shall be removed from the demolition area leaving the demolition area free of debris. Any cost incurred by the City in cleaning up such materials and debris left behind shall be deducted from funds due the Contractor under this contract. C. Tires, Household Hazardous Waste, White Goods and Electronics: Tires, household hazardous waste (HHW) (which includes propane tanks, paint, pesticides and other materials that are restricted items for disposal in municipal landfills), white goods (which include household appliances such as washers, dryers, refrigerators, stoves, dishwashers, heaters, hot water heaters, etc.) and electronics (e -waste) will be first segregated from the structures and transported to an appropriate disposal site. The Black Hawk County Landfill will not accept HHW, so an alternative disposal site must be proposed. These wastes may be segregated in the field and hauled in concentrated loads. The Contractor shall visit the site to determine the number of tires that have been abandoned on site. If any additional tires are deposited on site prior to commencing demolition activity, the Contractor shall immediately notify the City's Representative of the quantity of additional tires so a change order can be prepared for additional removal. A change order will only be considered if the Contractor identified the number of abandoned tires on the site in the bid tabulation. 7 Page 63 of 405 D. Disposal of Demolition Debris and Solid Waste: 1. All debris and solid waste shall be delivered by the Contractor to the Black Hawk County Landfill. The Contractor shall be responsible to pay all fees for waste disposal. The Contractor shall submit to the City's Representative copies of all disposal tickets for entire project. The cost of all disposal fees shall be considered incidental to the demolition. 2. All loads shall be secured while in transit, and all trucks used for disposal shall have a solid metal tailgate. Tarps and netting shall be used to prevent loss or dispersal of debris during transit and to minimize the threat of harm to the general public, private property and public infrastructure. E. Reserved F. Freon Removal and Disposal: The handling of Freon -containing appliances is subject to all applicable state and federal mandates and regulations. The Contractor shall be responsible for the identification and removal and disposal of the material in accordance with applicable regulations. All costs associated with said removal and disposal shall be considered incidental and shall be included in the lump sum bid for demolition. G. PCB and Mercury Removal and Disposal: The handling of any fluorescent lighting fixtures and ballasts containing PCB or mercury is subject to all applicable state and federal mandates and regulations. The Contractor shall be responsible for the removal and disposal of the material in accordance with applicable regulations. All costs associated with said removal and disposal shall be considered incidental and shall be included in the lump sum bid for demolition. 2.06 Final Cleaning Up: a. Before acceptance of the demolition work, the Contractor shall remove all unused material and rubbish from the site of the work, remedy any objectionable conditions the Contractor may have created on private property, and leave the right-of-way in a neat and presentable condition. The Contractor shall not make agreements that allow salvaged or unused material to remain on public or private property at or adjacent to the project area. All ground occupied by the Contractor in connection with the work shall be restored. Restoration shall include grading and erosion control that meets applicable standards and regulations. b. Final cleaning up shall be subject to approval of the City's Representative and in accordance with applicable regulations. All pieces, parts, scraps, debris, rubbish, wood or organic materials from demolition activities shall be cleaned up and removed from the premises on a weekly basis. Final cleanup after a structure is demolished shall include complete and thorough removal from the premises of all parts or pieces of the building, its contents and its furnishings, including all debris, organic materials, rubbish, wood, concrete and masonry rubble. All hazardous open pits and recesses shall be securely fenced. 8 Page 64 of 405 2.07 UTILITY DISCONNECTIONS The Contractor shall be responsible for coordinating with private utility companies for disconnection of services, including, but not limited to, electricity, natural gas, cable television, phone and internet. A. Sanitary Sewer Service Disconnection: All sanitary sewer services shall be disconnected before demolition work begins and plugged in conformance with requirements of the City. The Contractor shall not backfill the area prior to inspection by the Waterloo Building Inspections Department. Contractor may contact the Waterloo Building Inspections Department for requirements to comply with this specification. B. Water Service Disconnection: All water services and stubs for the buildings or properties within the demolition work shall be disconnected before demolition work begins in conformance with the requirements of the City. The Contractor shall not backfill the area prior to inspection by Waterloo Water Works. Contractor may contact the Waterloo Water Works for requirements to comply with this specification. C. Backfill and Compaction within City Right -of -Way: 1. Streets: The Contractor shall backfill, compact as specified and patch the surface of all excavations made in streets. The Contractor shall pay the cost. 2. Public Right -of -Way: All areas within the public right-of-way (including parking and sidewalk areas) shall be compacted. 3. Basements: Shall be backfilled with clean fill according to SUDAS specs. 2.08 EROSION CONTROL All sites: 1. Control off-site vehicle track out (stabilized entrance) 2. Controls at downslope perimeter: a. Prevent sediment from reaching neighboring properties or drainage infrastructure; this can be done through vegetative buffers, silt fence or wattles depending on setting b. Protect on-site or adjacent storm water intakes as needed, typically done with filter sock or inlet bag c. Stabilize after completion For any Sites over one acre of disturbance: 1. Meet all requirements stipulated above 2. Develop a storm water pollution prevention plan and submit to city engineer's office for approval 9 Page 65 of 405 3. Attain GP2 authorization from the Iowa DNR 4. Comply with all requirements of GP2 and City of Waterloo municipal code of ordinances 8- 4B: Construction Site Erosion and Sediment Control, including completion of weekly site inspections 5. Contact city engineers office for pre -construction inspection prior to land disturbance 6. Contact city engineers office for post -construction inspection prior to permit closure 2.09 SAFETY AND FENCING A. Safety: The Contractor shall comply with all applicable current federal, state and local safety and health regulations. B. Safety Fencing: The Contractor shall furnish and place a safety fence around the site adequate enough to secure the demolition site, including any resulting debris or excavation, and to prevent pedestrian access. C. Demolition Techniques: The Contractor shall employ good demolition techniques, which includes, but is not limited to: 1. Using demolition techniques that minimize ground disturbance. All trees and shrubs shall be removed from entire site. 2. Maintaining the practice of keeping personnel at a safe distance from demolition activities. 3. Loading the materials with techniques to maintain a sufficient distance from personnel to reduce excessive exposure to airborne material. 4. Tarping loads and otherwise preventing material from becoming airborne during hauling. 5. Manual cleaning of the demolition site to remove all materials from the site. Contractor shall be responsible for providing protective gear and equipment to its agents and employees and for ensuring its proper utilization. 2.10 AUTHORIZED WORKERS Only the Contractor and its employees are allowed to demolish, dismantle, detach or dispose of any part of the demolition structure or its contents. Other individuals or entities that the Contractor intends to allow to salvage materials shall only be allowed on the premises after fully satisfying the insurance requirements specified in Section 2.02 above. 2.11 DAILY CLEAN UP OF RIGHT-OF-WAY AND PRIVATE PROPERTY At the end of each workday, the Contractor shall clean sidewalks, streets, and private property of any debris caused by the demolition operation. 2.12 RESERVED 10 Page 66 of 405 2.13 EQUIPMENT 1. The Contractor shall be equipped with the normal tools of the trade and shall furnish all labor, tools, and other items necessary for and incidental to executing and completing all required work. 2. All equipment and vehicles utilized by the Contractor shall meet all the requirements of federal, state and local regulations, including, without limitation, all US DOT, Iowa DOT and safety regulations, and are subject to approval of the City. All loads must be secured and tailgates must be used on all loads. Sideboards must be sturdy and may not extend more than two feet above the metal sides of the truck or trailer. Trucks shall carry a supply of absorbent to be used to pickup any oil spilled from loading or hauling vehicles. 3. Contractor shall submit copies of the landfill tickets generated during project to the Project Manager that identifies the disposal site (Black Hawk County Landfill — refer to 2.05 (D) Disposal of Demolition Debris and Solid Waste) to which the materials were delivered. Such tickets shall be required to process billing statements by the Contractor. 2.14 ARCHAEOLOGY In the event that archaeological deposits (soils, artifacts and features, including cisterns, privies and the like), or other remnants of human activity are uncovered, or if archaeological deposits are found during demolition, the project will be halted immediately in the vicinity of the discovery, and the Contractor will take reasonable measures to avoid or minimize harm to finds. The Contractor will inform the Project Planner who will in turn notify the City. The City will then inform the State Historical Society of Iowa (SHSI) immediately. Work in the sensitive area cannot resume until a qualified archaeologist determines the extent of the discovery, consultations between SHSI are complete, and the City has been notified by SHSI. 2.15 PRICING This is a lump sum contract; all bids bid components are on a "not to exceed" basis. Change orders, additions, deletions and any other changes in the scope of work, will take the form of written amendments mutually agreed to by Contractor and City. In the case of mathematical errors, transposition of figures and the like, actual bid tabulation totals will take precedence over summary bid figures. 2.16 PROPERTY DAMAGE The Contractor shall be responsible for all damages to public and private property. The Contractor shall be responsible for having at least one person of authority and responsibility at the job site, and shall keep a report of all damage. If public or private property is damaged by the Contractor and is not repaired in a timely manner as determined by the City, the City has the ption of having the damage repaired at the Contractor's expense to be reimbursed to the City, withheld from future payments of the Contractor, or paid from the performance bond. 11 Page 67 of 405 CITY OF WATERLOO Council Communication Resolution approving preliminary specifications, bid documents, etc., and setting date of bid opening as March 16, 2017 and date of public hearing as March 20, 2017, for FY 2017 Highland Park Playground Project, and instruct City Clerk to publish notice of specifications, bid document, etc. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Leisure Services Clerk Office SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Alternative: Reviewer Even, LeAnn Even, LeAnn Action Approved Approved Date 2/15/2017 - 5:01 PM 2/15/2017 - 5:02 PM Resolution approving preliminary specifications, bid documents, etc., and setting date of bid opening as March 16, 2017 and date of public hearing as March 20, 2017, for FY 2017 Highland Park Playground Project, and instruct City Clerk to publish notice of specifications, bid document, etc. Submitted By: Travis Nichols, Facilities/Project Manager Approve the plans, specifications, etc. and taking of bids, and set the date of bid opening as March 16, 2017 and date of hearing as March 20, 2017 This project provides for new playground at Highland Park. $45,000 $20,000 Community Development Block Grant $20,000 G.O. Bond Funds $5,000 Donation N/A N/A Page 68 of 405 CITY OF WATERLOO Council Communication Resolution approving preliminary plans, specifications, form of contract, etc. and setting date of bid opening as March 9, 2017 and date of public hearing as March 13, 2017 for the F.Y. 2017 Site Grading for the Northeast Industrial Park Project, Contract No. 926, and instruct City Clerk to publish notice of preliminary plans, specifications, form of contract, etc. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Engineering Clerk Office ATTACHMENTS: Description NPH_926 NTB 926 SUBJECT: Submitted by: Summary Statement: Expenditure Required: Source of Funds: Reviewer Thorson, Eric Even, LeAnn Action Approved Approved Type Cover Memo Cover Memo Date 2/15/2017 - 11:38 AM 2/15/2017 - 2:14 PM Resolution approving preliminary plans, specifications, form of contract, etc. and setting date of bid opening as March 9, 2017 and date of public hearing as March 13, 2017 for the F.Y. 2017 Site Grading for the Northeast Industrial Park Project, Contract No. 926, and instruct City Clerk to publish notice of preliminary plans, specifications, form of contract, etc. Submitted By: Jeff Bales, Associate Engineer Plans prepared by JDE Engineering. TBD TIF Funds Page 69 of 405 NOTICE OF PUBLIC HEARING On Proposed Plans, Specifications, Form of Contract, And Estimate of Cost For the F.Y. 2017 SITE GRADING FOR NORTHEAST INDUSTRIAL PARK in the City of Waterloo, Iowa CONTRACT NO. 926 RECEIVING OF BIDS Sealed proposals will be received by the City Clerk of the City of Waterloo, Iowa, at her office in the City Hall of the said City on the 9th day of March, 2017 until 1:00 p.m. for the construction of the F.Y. 2017 SITE GRADING FOR NORTHEAST INDUSTRIAL PARK, CONTRACT NO. 926 as described in detail in the plans and specifications now on file in the Office of the City Clerk. OPENING OF BIDS All proposals received will be opened in the First Floor Conference Room at City Hall, in the City of Waterloo, Iowa, on the 9th day of March, 2017 at 1:00 p.m., and the proposals will be acted upon at such later time and place as may then be fixed by the City Council. PUBLIC HEARING Notice is hereby given that the Council of said City will conduct a public hearing on the proposed plans, specifications, form of contract, and estimate of cost for the construction of the above-described improvement project at 5:30 p.m. on the 13th day of March, 2017, said hearing to be held in the Harold E. Getty Council Chambers in City Hall in said City. The proposed plans, specifications, form of contract, and estimate of cost for said improvements heretofore prepared by City of Waterloo are now on file in the office of the City Clerk for public examination, and any person interested therein may file written objection thereto with the City Clerk before the date set for said hearing, or appear and make objection thereto with the City Clerk before the date set for said hearing, or appear and make objection thereto at the meeting above set forth. The NOTICE TO BIDDERS can be viewed at the following locations: 1) City of Waterloo web site at http://ci.waterloo.ia.us/ 2) Plan rooms: Master Builders of Iowa 221 Park Street, PO Box 695 Des Moines, IA 50303 NOTICE OF HEARING McGraw Hill Construction Dodge 3315 Central Ave. Hot Springs, AR 71913 CONTRACT NO. 926 Page 2 70 of 405 Reed Construction Data 30 Technology Parkway South, Ste. 500 Norcross, GA 30092 3) Plan Room Web sites: Master Builders of Iowa web site at www.mbionline.com Dodge Lead web site: http://dodgeprojects.construction.com/ Reed Const. Data Lead web site: http://www.cmdgroup.com/project-leads/ SCOPE OF WORK The extent of the work involved in this project consists of the grading of approximately 25 acres (approximately 55 acres total if alternate #1 is also selected for construction) of the Northeast Industrial Park expansion area, and related work, for future industrial development. This work includes, but is not limited to, cut and fill operations necessary to achieve level building sites ready for placement of footings, grading and realignment of ditch areas along Martin Luther King Jr. Drive and Newell Street, and storm sewer improvements within the existing Martin Luther King Jr. Drive right-of-way. Published pursuant to the provisions of Chapter 26 of the City Code of Iowa and upon order to the City Council of said Waterloo, Iowa, on the day of 2016. NOTICE OF HEARING CITY OF WATERLOO, IOWA BY: Kelley Felchle City Clerk CONTRACT NO. 926 Page 2 71 of 405 NOTICE TO BIDDERS for the Taking of Construction Bids for the F.Y. 2017 SITE GRADING FOR NORTHEAST INDUSTRIAL PARK in the City of Waterloo, Iowa CONTRACT NO. 926 RECEIVING OF BIDS Sealed proposals will be received by the City Clerk of the City of Waterloo, Iowa, at her office in the City Hall of the said City on the 9th day of March, 2017 unti11:00 p.m. for the construction of the F.Y. 2017 SITE GRADING FOR NORTHEAST INDUSTRIAL PARK, Contract No. 926, as described in detail in the plans and specifications now on file in the Office of the City Clerk. OPENING OF BIDS All proposals received will be opened in the First Floor Conference Room at City Hall, in the City of Waterloo, Iowa, on the 9th day of March, 2017, at 1:00 p.m., and the proposals will be acted upon at such later time and place as may then be fixed by the City Council. PUBLIC HEARING The Council of said City will conduct a public hearing on the proposed plans, specifications, form of contract, and estimate of cost for the construction of the above- described improvement project at 5:30 p.m. on March 13, 2017, said hearing to be held in the Harold E. Getty Council Chambers in City Hall in said City. SCOPE OF WORK The extent of the work involved in this project consists of the grading of approximately 25 acres (approximately 55 acres total if alternate #1 is also selected for construction) of the Northeast Industrial Park expansion area, and related work, for future industrial development. This work includes, but is not limited to, cut and fill operations necessary to achieve level building sites ready for placement of footings, grading and realignment of ditch areas along Martin Luther King Jr. Drive and Newell Street, and storm sewer improvements within the existing Martin Luther King Jr. Drive right-of-way. BEGINNING AND COMPLETION DATES The work under the proposed contract shall be commenced within ten (10) working days after receipt of "Notice to Proceed" and all items shall be completed on or before August 4, 2017. METHOD OF PAYMENT TO CONTRACTOR The Contractor will be paid against bi-monthly estimates in cash on the basis of ninety- five percent (95%) of the work as it is completed and materials delivered and work approved. Final payment will be made thirty-one (31) days after completion of the workand acceptance by the Council. Before final payment is made, vouchers showing thatall subcontractors and workmen and all persons furnishing materials have been fully NOTICE TO BIDDERS CONTRACT NO. 926 Page 1 of Page 72 of 405 paid for such materials and labor will be required unless the City is satisfied that material, men and laborers have been paid. The Contractor is hereby notified that if the City does not have cash on hand to pay monthly pay estimates, according to Chapter 384.57 of the Code of Iowa, payment may be made by anticipatory warrants issued bearing a rate of interest not exceeding that permitted by Chapter 74A, Code of Iowa. PLANS AND SPECIFICATIONS Plans and Specifications governing the construction of the proposed improvements have been prepared by the City of Waterloo Engineering Department, which plans and specifications and also the prior proceedings of the City Council referring to and defining said proposed improvements are hereby made a part of this notice, and the proposed contract by reference shall be executed in compliance therewith. Plans and Specifications are available from the Engineering Department on the second floor of City Hall upon the receipt of a $25.00 refundable deposit. Deposits will be refunded if the plans are returned in usable condition (i.e. generally free of highlights, ink markings, tears, stickers, water stains and soiling) to the Engineer's Office by the end of the 14th consecutive day after the project has been awarded. No deposits will be refunded for any requests or plans received after the 14th consecutive day, which includes plans returned via mail service. Plan holders are responsible for ascertaining when the project has been awarded. If the plan holder is the prime contractor or a subcontractor or supplier of the prime contractor that has been awarded the project, Plans and Specifications do not need to be returned to receive the deposit. The prime contractor must submit a list of his subcontractors and suppliers for the Cityto verify eligibility for the refundable deposit. Upon award of project, the prime contractor, his subcontractors and suppliers shall be supplied with the needed number of plans and specifications at no additional cost. CONTRACT AWARD A contract will be awarded to the qualified bidder submitting the lowest bid for Base Bid plus Alternate(s) that the City selects for construction. The City reserves the right to reject any or all bids, re -advertise for new bids, and to waive informalities in the bids submitted that might be in the best interest of the City. Bids may be held by the City of Waterloo, Iowa, for a period not to exceed thirty (30) days from the day of the opening of bids for the purpose of reviewing the bids and investigating the qualifications of bidders, prior to awarding the contract. By virtue of statutory authority, a preference will be given to products and provisions grown and coal produced with the State of Iowa and preference will be given to local domestic labor in the construction of the improvement. PROPOSALS SUBMITTED The bidder shall submit bids on the items listed in the proposal. The bidder shall clearly write or type the unit bid price and the bid item extension (Unit Price x Estimated Qty) in NOTICE TO BIDDERS CONTRACT NO. 926 Page 2 of Page 73 of 405 numerals on the blanks provided. Should there be any discrepancy between the unitbid price and extension, the City of Waterloo shall consider the unit bid price as being the valid unit bid price. The bidder has the option to submit a computer-generated spreadsheet in lieu of the portion of the Form of Bid or Proposal, which includes the Bid Item Number, Description, Unit, Estimated Quantity, Unit Bid Price, Total Bid Price and Total Bid. The computer-generated spreadsheet shall include all of the information listed in that portion of the Form of Bid or Proposal as well as bear the signature of the Prime Contractor submitting the bid. For the bidders who submit a computer-generated spreadsheet, the TOTAL BID (with alternates, if applicable) shall also be indicated in the space(s) provided on the Form of Bid or Proposal. BID SECURITY REQUIRED All bids must be accompanied in a separate envelope by a certified or cashier's check drawn on an Iowa bank, or a bank chartered under the laws of the United States, a certified share draft drawn on a credit union in Iowa or chartered under the laws of the United States, or bid bond, (on the form furnished by the City) payable to the City of Waterloo, Iowa, in the sum of not less than five percent (5%) of the bid submitted, which certified check, certified share draft or bid bond will be held as security that the Bidder will enter into a Contract for the construction of the work and will furnish the required bonds, and in case the successful Bidder shall fail or refuse to enter into the Contract and furnish the required bonds, his bid security may be retained by said City as agreed upon liquidated damages. If bid bond is used, it must be signed by both the Bidder and the surety or surety's agent. Signature of surety's agent must be supported by accompanying Power of Attorney. PERFORMANCE & PAYMENT BONDS The successful bidder will be required to furnish a "Performance Bond" and a "Payment Bond" within ten (10) days after forms are presented to him in an amount equal to one hundred percent (100%) of the contract price, said bond to be issued by a responsible surety approved by the City Council and shall guarantee the faithful performance of the contract and the terms and conditions therein contained, and shall guarantee the prompt payment of all materials and labor and protect and save harmless the City from claims of any kind caused by the operations of the contractor. MAINTENANCE BOND Before the Contractor shall be entitled to receive final payment for work done under this contract, it shall execute and file a bond in the penal sum of not less than 100% of the total amount of the contract, same to be known as "Maintenance Bond," and which bond must be approved by the City Council, and which bond is in addition to the bond given by the Contractor to guarantee the completion of the work. CONTRACT COMPLIANCE PROGRAM / SUBCONTRACTING The program proposes numerical projections regarding utilization of Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) as Subcontractors, vendors and suppliers in the performance of Contracts awarded by the City of Waterloo, Iowa. NOTICE TO BIDDERS CONTRACT NO. 926 Page 3 of Page 74 of 405 A goal of at least ten percent (10%) for MBE participation on all City funded construction projects that are estimated at $50,000.00 or more. A goal of at least two percent (2%) for WBE participation on all City funded construction projects that are estimated at $50,000.00 or more. Any project funded in part or in total with federal funds shall follow the respective agencies contract compliance program and goals. The Prime Contractor shall make "good -faith efforts" to meet the Contract Compliance MBE/WBE goals. The MBE/WBE subcontractors, suppliers or vendors must provide the Prime Contractor a reasonably competitive price for the service being rendered or the Contractor is not required to accept their bid. LIQUIDATED DAMAGES Time is an essential element of this contract. It is important that the work be diligently pursued to completion. If the work is not completed within the specified contract period, plus authorized extensions, the contractor shall pay to the City Liquidated Damages in the amount of five hundred dollars ($500.00) per day, for each day, as further described herein, in excess of the authorized time. Days beyond the specified completion date for which Liquidated Damages will be charged will be working days that the contractor does, or could have worked, from Monday through Saturday. Sundays will be counted only if work is performed. Partial working days will be considered as a full working day. Days not chargeable for Liquidated Damages will include rain days, Sunday if no work is done, and legal holidays. Working days will cease to be charged when only punch list items remain to be completed. Punch list items do not include contract bid items or approved change/extra work orders. When the Contractor believes the project to be substantially completed, a written notice stating the same shall be submitted to the Engineer and a request made for a Punch List. If the work under the Contract extends beyond the normal construction season for such work the Contractor shall submit to the Engineer in writing a request that working days counted toward the project be suspended until work is resumed the following construction season. This amount is not construed as a penalty. These damages are for the cost to the City of providing the required additional inspection, engineering and contract administration. PRE -CONSTRUCTION CONFERENCE Before the work is commenced on this contract, a conference shall be held for the purpose of discussing the contract. The conference shall be attended by the prime contractor, subcontractors and City Officials. RESIDENT BIDDER/NON-RESIDENT BIDDER Attention of bidders is called to compliance with the provisions of the Resident Bidder/Non-Resident Bidder requirements. Each bidder submitting a bid shall execute and include with the bid, a Resident Bidder Certification or a Non -Resident Bidder Certification in the form(s) herein provided. NOTICE TO BIDDERS CONTRACT NO. 926 Page 4 of Page 75 of 405 SALES TAX EXEMPTION CERTIFICATES Contractors and approved subcontractors will be provided a Sales Tax Exemption Certification to purchase building materials or supplies in the performance of construction contracts let by the City of Waterloo. Posted pursuant to the provisions of Chapter 26 of the City Code of Iowa. NOTICE TO BIDDERS CITY OF WATERLOO, IOWA CONTRACT NO. 926 Page 5 of Page 76 of 405 CITY OF WATERLOO Council Communication Resolution setting the date of public hearing as Thursday, March 9, 2017 at 5:30 p.m. to approve the FYE2018 budget and instruct the City Clerk to publish notice City Council Meeting: 2/20/2017 Prepared: 2/17/2017 REVIEWERS: Department Reviewer Action Date Finance Weidner, Michelle Approved 2/17/2017 - 5:00 PM Clerk Office Higby, Nancy Approved 2/17/2017 - 5:27 PM ATTACHMENTS: Description Type ❑ Budget Hearing FYE18 Request Council Comm Cover Memo SUBJECT: Submitted by: Summary Statement: Policy Issue: Alternative: Resolution setting the date of public hearing as Thursday, March 9, 2017 at 5:30 p.m. to approve the FYE2018 budget and instruct the City Clerk to publish notice. Submitted By: Michelle Weidner, Chief Financial Officer The annual budget is required to be adopted and certified with Black Hawk County and the State of Iowa by March 15, 2017. The budget estimate must be published in the paper ten to twenty days prior to the budget hearing. Approving the budget establishes the tax levy rate and maximum expenses by program for the fiscal year ending June 30, 2018. If the budget isn't certified by March 15, 2017, the levy rate currently in effect ($17.60522) will be used to establish property taxes for the City of Waterloo. There would likely be an audit finding regarding noncompliance with state law regarding budget deadlines also. Page 77 of 405 3fa or QUINTIN HART COUNCIL MEMBERS TOM POWERS Ward I BRUCE JACOBS Ward 2 PATRICK MORRISSEY Ward 3 JEROME AIv1OS. JR. Ward 4 RON WETTER Ward 5 TOM LIND Al -Large STEVE SCHMITT At -Large CITY OF WATERLOO, IOWA CITY CLERK AND FINANCE DEPARTMENT 715 Mulberry St. • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 SUZY SC] IARES • C/tv Clerk MICHELLE WEIDNER, CPA • Chief Financial Officer Council Communication City Council Meeting: Prepared: Dept. Head Signature: Number of Attachments: February 20, 2017 February 17, 2017_` CJ. -e iz/L None SUBJECT: Set Hearing Date for FYE2018 Budget Submitted by: Michelle Weidner, CFO Recommended City Council Action: Set the date of hearing for the FYE2018 budget for Thursday, March 9 at 5:30 p.m. Summary Statement: The budget is required to be adopted and certified with Black Hawk County and the State of Iowa by March 15, 2017. The budget estimate must be published in the paper ten to twenty days prior to the budget hearing. Expenditure Required: None Source of Funds: None Policy Issue: Approving the budget establishes the tax levy rate and maximum expenditures by program for the fiscal year ending June 30, 2018. Alternative: If the budget isn't certified by March 15, 2017, the levy rate currently in effect ($17.60522) will be used to establish property taxes for the City of Waterloo. There would likely be an audit finding regarding noncompliance with state law regarding budget deadlines also. Background Information: None WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 78 of 405 CITY OF WATERLOO Council Communication Sale and conveyance of city -owned property located at 1003 Lafayette Street to Karina Valdez with a purchase price of $130,000 through the Neighborhood Stabilization Program. City Council Meeting: 2/20/2017 Prepared: 2/13/2017 REVIEWERS: Department Community Development Clerk Office Reviewer Jones, Rudy Even, LeAnn ATTACHMENTS: Description ❑ Photo of 1003 Lafayette ❑ Photo of 1003 Lafayette D Legal Description SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Legal Descriptions: Action Approved Approved Type Cover Memo Cover Memo Backup Material Date 2/14/2017 - 3:11 PM 2/15/2017 - 2:45 PM Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING -No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution authorizing sale and conveyance of 1003 Lafayette Street to Karina Valdez, in the amount of $130,000, and authorize the Mayor and City Clerk to execute said documents. Submitted By:Rudy D. Jones, Community Development Director Approval The property was acquired using federal Neighborhood Stabilization Program funds and a new construction home was built. Authorize City Attorney to prepare and deliver deed accordingly. A forgivable loan will be recorded on the property for closing costs of $1,000 using Neighborhood Stabilization funds. Neighborhood Stabilization Program Round 3 THE NORTHWESTERLY 49 FEET OF THE SOUTHEASTERLY 98 FEET OF LOTS NOS. 7 AND 10 IN BLOCK 24 IN THE ORIGINAL PLAT ON THE EAST SIDE OF THE CEDAR RIVER IN THE CITY OF WATERLOO, BLACK HAWK COUNTY,IOWA Page 79 of 405 r"). 21r • 4 Page 81 of 405 RESIDENTIAL PURCHASE AGREEMENT TO: The City of Waterloo, Iowa ("SELLER") FROM: Karina Valdez ("BUYER") The undersigned BUYER hereby offers to buy, and the undersigned SELLER by its acceptance agrees to sell, the real property situated in Black Hawk County, Iowa, locally known as 1003 Lafayette Street, Waterloo, Iowa 50703, and legally described as: The Northwesterly Forty -Nine (49) feet of the Southeasterly Ninety-eight (98) feet of Lots Nos. Seven (7) and Ten (10) in Block No. Twenty-four (24) in the Original Plat on the East Side of the Cedar River in the City of Waterloo, Black Hawk County, Iowa, together with any easements, zoning restrictions, customary restrictive covenants, and mineral reservations of record, if any, herein referred to as the "Property," upon the following terms and conditions: 1. PURCHASE PRICE. The Purchase Price shall be One Hundred Thirty Thousand and 00/100 Dollars ($130,000.00), to be paid as follows: (a) with this offer, to be held in the Redfern, Mason, Larsen & Moore, P.L.C. Trust Account as earnest money, to be delivered to SELLER upon performance of SELLER'S obligations hereunder; and (b) the balance in cash at closing, with adjustment for closing costs to be added or deducted from this amount. This agreement is subject to BUYER obtaining a commitment for one or more conventional mortgage loan(s) on said Property aggregating up to 100% of the total purchase price, at an interest rate not to exceed 0% per annum amortized over a period of 30 years from Iowa Heartland Habitat for Humanity under terms consistent with its partner family program. All costs incurred in securing said mortgage shall be paid by the BUYER unless otherwise agreed herein. BUYER agrees upon acceptance of this agreement to make application immediately for such mortgage loan with a lender and to make a good faith effort to obtain a mortgage commitment and proceed toward closing as provided herein. BUYER shall obtain such mortgage commitment on or before February 28, 2017. Within this same period, BUYER shall notify SELLER, in writing, that BUYER has secured said mortgage commitment and that this contingency is removed. If BUYER, after a good faith effort, has not obtained a written mortgage commitment and given such written contingency removal notice within this same time period, this agreement shall be voidable at BUYER'S option. 2. REAL ESTATE TAXES. A. SELLER shall pay all real estate taxes that are due and payable as of the date of possession and which constitute a lien against the Property, including any unpaid real estate taxes for any prior years. B. SELLER shall pay its prorated share, based upon the date of possession, of the real estate taxes for the fiscal year in which possession is given (commencing July 1, 2016, and ending June 30, 2017) due and payable in the subsequent fiscal year (commencing July 1, 2017). BUYER shall be given a credit for such proration at closing based upon the actual net real estate taxes that will be payable for such period according to public record. However, if such taxes are based Page 1 of 5 Page 82 of 405 upon a partial assessment of the present property improvements or a changed tax classification as of the date of possession, such proration shall be based on the current millage rate, the assessed value, legislative tax rollbacks, and real estate tax exemptions that will actually be applicable as shown by the Assessor's Records on the date of possession. C. BUYER shall pay all subsequent real estate taxes. 3. SPECIAL ASSESSMENTS. SELLER shall pay in full at time of closing all special assessments which are a lien on the Property as of the date of acceptance. BUYER shall pay all other special assessments or installments not payable by SELLER. All charges for solid waste removal, sewage, and maintenance that are attributable to SELLER'S possession, including those for which assessments arise after closing, shall be paid by SELLER. BUYER shall pay all other special assessments. 4. RISK OF LOSS AND INSURANCE. SELLER shall bear the risk of loss or damage to the Property prior to closing or possession, whichever first occurs. SELLER agrees to maintain existing insurance, and BUYER may purchase additional insurance. In the event of substantial damage or destruction prior to closing, this Agreement shall be null and void; provided, however, BUYER shall have the option to complete the closing and receive insurance proceeds regardless of the extent of damages. The Property shall be deemed substantially damaged or destroyed if it cannot be restored to its present condition on or before the closing date. 5. POSSESSION AND CLOSING. If BUYER timely perform all obligations, possession of the Property shall be delivered and closing shall take place on February 28, 2017. Any adjustments of insurance, interest, and all charges attributable to the SELLER'S possession shall be made as of the date of possession. This transaction shall be considered closed upon the delivery of the title transfer documents to BUYER and receipt of all funds then due at closing from BUYER under the Agreement. 6. FIXTURES. Included with the Property shall be all fixtures that integrally belong to, are specifically adapted to or are a part of the real estate, whether attached or detached, such as: attached wall-to-wall carpeting, built-in appliances, light fixtures (including light bulbs), water softeners (except rentals), shutters, shades, rods, blinds, venetian blinds, awnings, storm windows, storm doors, screens, television antennas (including satellite dishes), air conditioning equipment (except window type), door chimes, automatic garage door openers, electrical service cables, attached mirrors, fencing, gates, attached shelving, bushes, trees, shrubs, and plants. 7. CONDITION OF PROPERTY. A. The Property as of the date of this Agreement, including buildings, grounds, and all improvements, will be preserved by the SELLER in its present condition until possession, ordinary wear and tear excepted. B. Within ten (10) days after the final acceptance date of this agreement, BUYER may, at BUYER'S sole expense, have the property inspected by a person(s) of BUYER'S choice to identify any structural, mechanical, plumbing, electrical, pest infestation, environmental concerns or other deficiency(ies). Within this same period, the BUYER may notify the SELLER in writing of any deficiency the BUYER wants remedied. Failure to do so shall be deemed a waiver of the BUYER'S inspection. In the event of any request by BUYER as a result of Page 2 of 5 Page 83 of 405 inspections, SELLER shall within three (3) business days after said notification (date of notification does not count) notify the BUYER in writing which steps, if any, SELLER will take to remedy any deficiency before closing. The BUYER shall within three (3) business days (date of notification does not count) notify the SELLER in writing that (1) such steps are acceptable, in which case this agreement, so modified, shall be binding upon all parties; or (2) that such steps are not acceptable, in which case this agreement shall be null and void, and any earnest money shall be returned to BUYER. Failure by either SELLER or BUYER to give the notification within the three (3) business days as stated above, shall render this agreement null and void, and any earnest money shall be returned to BUYER. 8. ABSTRACT AND TITLE. SELLER, at its expense, promptly shall obtain an abstract of title to the Property continued through the date of acceptance of this Agreement and shall deliver it to BUYER'S attorney for examination. It shall show merchantable title in SELLER in conformity with this Agreement, Iowa law, and Title Standards of the Iowa State Bar Association. The SELLER shall make every reasonable effort to promptly perfect title. If closing is delayed due to SELLER'S inability to provide marketable title, this Agreement shall continue in force and effect until either party rescinds the Agreement after giving ten days written notice to the other party. The abstract shall become the property of BUYER when the purchase price is paid in full. SELLER shall pay the costs of any additional abstracting and title work due to any act or omission of SELLER. 9. SURVEY. BUYER may, at BUYER'S expense prior to closing, have the Property surveyed and certified by a Registered Land Surveyor. If the survey shows any encroachment on the Property or if any improvements located on the Property encroach on lands of others, the encroachments shall be treated as a title defect. If the survey is required under Chapter 354, SELLER shall pay the cost thereof. 10. ENVIRONMENTAL MATTERS. SELLER warrants to the best of its knowledge and belief that there are no abandoned wells, solid waste disposal sites, hazardous wastes or substances, or underground storage tanks located on the Property; the Property does not contain levels of radon gas, asbestos, or urea -formaldehyde foam insulation which require remediation under current governmental standards; and SELLER has done nothing to contaminate the Property with hazardous wastes or substances. SELLER warrants that the Property is not subject to any local, state, or federal judicial or administrative action, investigation, or order, as the case may be, regarding wells, solid waste disposal sites, hazardous wastes or substances, or underground storage tanks. SELLER shall also provide BUYER with a properly executed GROUNDWATER HAZARD STATEMENT showing no private burial sites, solid waste disposal sites, hazardous waste, or underground storage tanks on the Property. 11. DEED. Upon payment of the purchase price, SELLER shall convey the Property to BUYER by Warranty Deed, free and clear of all liens, restrictions, and encumbrances except as provided in this Agreement. General warranties of title shall extend to the time of delivery of the deed excepting liens or encumbrances suffered or permitted by BUYER. 12. USE OF PURCHASE PRICE. At time of settlement, funds of the purchase price may be used to pay taxes and other liens and to acquire outstanding interests, if any, of others. Page 3 of 5 Page 84 of 405 13. REMEDIES OF THE PARTIES. A. If BUYER fails to timely perform this Agreement, SELLER may forfeit it as provided in the Iowa Code (Chapter 656), and all payments made shall be forfeited; or, at SELLER'S option, upon thirty days written notice of intention to accelerate the payment of the entire balance because of BUYER'S default (during which thirty days the default is not corrected), SELLER may declare the entire balance immediately due and payable. Thereafter this Agreement may be foreclosed in equity and the Court may appoint a receiver. B. If SELLER fails to timely perform this Agreement, BUYER has the right to have all payments made returned to them. C. BUYER and SELLER are also entitled to utilize any and all other remedies or actions at law or in equity available to them, and the prevailing parties shall be entitled to obtain judgment for costs and attorney fees actually incurred in any way related to this Agreement and any representations, whether required by law or otherwise, related to the Property. The right to recover costs and attorney fees under this provision shall survive closing. 14. NOTICE. Any notice under this Agreement shall be in writing and be deemed served when it is delivered by personal delivery or by certified mail return receipt requested, addressed to the parties at their respective addresses given below. 15. GENERAL PROVISIONS. In the performance of each part of this Agreement, time shall be of the essence. Failure to promptly assert rights herein shall not, however, be a waiver of such rights or a waiver of any existing or subsequent default. This Agreement shall apply to and bind the successors in interest of the parties. This Agreement shall survive the closing. This Agreement contains the entire agreement of the parties and shall not be amended except by a written instrument duly signed by SELLER and BUYER. Paragraph headings are for convenience of reference and shall not limit or affect the meaning of this Agreement. Words and phrases herein shall be construed as in the singular or plural number, and as masculine, feminine, or neuter gender according to the context. 16. INSPECTION OF PRIVATE SEWAGE DISPOSAL SYSTEM. SELLER represents and warrants to BUYER that there are no known private sewage disposal systems on the property. 17. REPRESENTATION. A. Neither party has used the service of a real estate agent or broker in connection with this transaction. B. The parties acknowledge and agree that the firm of Redfern, Mason, Larsen & Moore, P.L.C. (the "Firm") has drafted this Agreement at the request of the parties. Neither the BUYER nor the SELLER has been represented by the Firm in this matter, and both parties have had the opportunity to obtain independent legal counsel at their option. 18. OTHER PROVISIONS. A. Washer, dryer, refrigerator, stove, microwave, and water softener shall be included at no additional value. Page 4 of 5 Page 85 of 405 19. ACCEPTANCE. When accepted, this Agreement shall become a binding contract. If not accepted and delivered to BUYER on or before 5:00 p.m. local time on Friday, February 3, 2017, this Agreement shall be null and void. If accepted by SELLER at a later date and acceptance is satisfied in writing, then this contract shall be valid and binding. SELLER City of Waterloo, Iowa By: Its: Date: 2—/-4 Its: Date: BUYER kavivt . lic loLe t Karina Valdez Date: - L - 1 k Page 5 of 5 Page 86 of 405 Legal description of 1003 Lafayette Street THE NORTHWESTERLY 49 FEET OF THE SOUTHEASTERLY 98 FEET OF LOTS NOS. 7 AND 10 IN BLOCK 24 IN THE ORIGINAL PLAT ON THE EAST SIDE OF THE CEDAR RIVER IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA J:\NANCY-G\NSP3\1003 Lafayette\Legal description of 1003 Lafayette Street.docx Page 87 of 405 CITY OF WATERLOO Council Communication Resolution approving award of bid to McGrath Auto, Cedar Rapids, IA in the amount of $24,898, for the purchase of one (1) Front Wheel Drive Cargo Van, to support Animal Control Operation. City Council Meeting: 2/20/2017 Prepared: 2/14/2017 REVIEWERS: Department Public Works Department Clerk Office SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Reviewer Rice, Mark Even, LeAnn Action Approved Approved Date 2/14/2017 - 8:44 AM 2/15/2017 - 1:59 PM Resolution approving award of bid to McGrath Auto, Cedar Rapids, IA in the amount of $24,898, for the purchase of one (1) Front Wheel Drive Cargo Van, to support Animal Control Operation. Submitted By: Mark Rice, Public Works Director Recommend Approval This purchase will provide a reliable, serviceable vehicle for Animal Control Officers to perform their day to day duties. The City is responsible for 1/2 of the total cost of this vehicle ($12,449) in conjunction with a grant from the Black Hawk County Gaming Association for 1/2 cost of vehicle, up to $25,000. $24,898 City share: $12,449 GO Bond Funds Page 88 of 405 CITY OF WATERLOO Council Communication Resolution authorizing an exception to the City of Waterloo purchasing procedures, to approve piggyback from the current active bid from Bill Colwell Ford, Hudson Iowa, for the purchase of one (1) 2017 Ford Interceptor SUV in the amount of $28,576. City Council Meeting: 2/20/2017 Prepared: 2/14/2017 REVIEWERS: Department Public Works Department Clerk Office SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Reviewer Rice, Mark Even, LeAnn Action Approved Approved Date 2/14/2017 - 11:51 AM 2/15/2017 - 2:12 PM Resolution authorizing an exception to the City of Waterloo purchasing procedures, to approve piggyback from the current active bid from Bill Colwell Ford, Hudson Iowa, for the purchase of one (1) 2017 Ford Interceptor SUV in the amount of $28,576. Submitted By: Mark Rice, Public Works Director Recommend Approval This purchase will replace unit #507, involved in accident that rendered the vehicle non -repairable. Insurance proceeds from this accident are $21,741.10. $6834.90 after applying insurance proceeds. GO Bond Funds Page 89 of 405 CITY OF WATERLOO Council Communication Resolution recommending final acceptance of the Rehabilitation of Taxiway A and Runway 12/30 Crack Sealing Project, and Approve Release of Pay Estimate 5 (final), in the amount of $42,901.50, to Aspro, Inc. of Waterloo, Iowa, and authorize the Airport Director to execute said document. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Airport Clerk Office Reviewer Even, LeAnn Even, LeAnn Action Approved Approved ATTACHMENTS: Description Type D Copy of Pay Estimate No: 5 (Final) Cover Memo SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Alternative: Background Information: Legal Descriptions: Date 2/15/2017 - 2:52 PM 2/15/2017 - 2:52 PM Resolution recommending final acceptance of the Rehabilitation of Taxiway A and Runway 12/30 Crack Sealing Project, and Approve Release of Pay Estimate 5 (final), in the amount of $42,901.50, to Aspro, Inc. of Waterloo, Iowa, and authorize the Airport Director to execute said document. Submitted By: Keith Kaspari, Airport Director Approve acceptance of project and approve payment of final request as recommended by Staff. This project performed rehabilitation of Taxiway "A" by asphalt mill and overlay and repair cracks and joints in Runway 12/30 by cleaning and sealing. 10% local match is required for this project using the Airport's Passenger Facility Charge (PFC Program). This project will be funded via the FAA AIP program, with 10% local funds required which are provided in the form of Passenger Facility Charges (PFCs). Not applicable for this project request by Staff No project alternatives were recommended by Staff. This project will extend the life expectancy of the Taxiway A and Runway 12/30 pavements. Not Applicable for this request by Staff. Page 90 of 405 Item for Agenda Resolution recommending final acceptance of the Rehabilitation of Taxiway A and Runway 12/30 Crack Sealing completed by Aspro, Inc. of Waterloo, Iowa at the Waterloo Regional Airport as part of the FAA AIP Project No. 3-19-0094-044. Submitted By: Keith Kaspari, Airport Director CITY OF WATERLOO Council Communication Resolution recommending final acceptance of the Rehabilitation of Taxiway A and Runway 12/30 Crack Sealing completed by Aspro, Inc. of Waterloo, Iowa for the Rehabilitation of Taxiway A and Runway 12/30 Crack Sealing project at the Waterloo Regional Airport. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 ATTACHMENTS: Description Type AECOM Letter of Recommendation Cover Memo SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Alternative: Background Information: Legal Descriptions: Resolution recommending final acceptance of the Rehabilitation of Taxiway A and Runway 12/30 Crack Sealing and Release of Pay Estimate 5 (FINAL) in the amount of $42,901.50 to Aspro, Inc. of Waterloo, Iowa for the Rehabilitation of Taxiway A and Runway 12/30 Crack Sealing project at the Waterloo Regional Airport. Submitted By:Keith Kaspari, Director of Aviation Approve acceptance of project and payment of final request recommended by Staff. This project performed rehabilitation of Taxiway "A" by asphalt mill and overlay and repair cracks and joints in Runway 12/30 by cleaning and sealing. 10% local match is required for this project using Passenger Facility Charges (PFCs). This project will be funded via the FAA AIP program, with 10% local funds required which are provided in the form of Passenger Facility Charges (PFCs). Not Applicable for this project No project alternatives are recommended by Staff. This project will extend the life expectancy of the Taxiway A and Runway 12/30 pavements. Not Applicable Page 91 of 405 February 7, 2017 Mr. Keith Kaspari,MPA, CM Waterloo Regional Airport 2790 Livingston Lane Waterloo, IA 50703 AECOM 5153237919 tel 500 SW 7th Street 515 244 480fax Suite 301 Des Moines, /vwusnxoo www.aecom.com SUBJECT: Rehabilitate Taxiway A and Runway 12/30 Crack Sealing Waterloo Regional Airport Waterloo, Iowa FAA AUP Project No. 3-19-0094-44 AECOM ID No. 60440546 Dear Mr. Kaspari: Please find enclosed four (4) copies of Pay Estimate No. 5 (Final) for the above -referenced project for the period ending December 10, 2016. We have reviewed this project, find it to be completed in accordance with the plans and apaoificoUons, find the punch list items to be completed, and recommend acceptance of this project. We recommend release of retainage to Aspro, Inc. in the amount of $42.901.50 for work completed. Please return two (2) signed copies of the final pay estimate for our use and distribution. If you have any questions or commentsplease contact our office at your convenience. Yours sincerely, -^*'�! David B. Hughes, P.E. Enclosure: As noted cc: Mr. Milt Dakovich, Aspro, Inc. p:16u44umoALO Twrx nTwy^pssStatement ofCompletion m= Page 92 of 405 0) (Q (D W 0 0 01 PAY ESTIMATE NO. 5 (FINAL) REHABILITATION OF TAXIWAY "A" WATERLOO REGIONAL AIRPORT, WATERLOO, IOWA FAA AIP PROJECT NO. 3-19-0094-44 AECOM PROJECT NO. 60440546 Date: December 10, 2016 ITEM NO. DESCRIPTION UNIT UNIT PRICE CONTRACT QUANTITY CONTRACT AMOUNT AUTHORIZED QUANTITY AUTHORIZED AMOUNT TO DATE QUANTITY TO DATE AMOUNT I MOBILIZATION AND DEMOBILIZATION LS $ 206,400.00 1 $ 206,400.00 1 $ 206,400.00 1.0 $ 206,400.00 2 PAVEMENT REMOVAL SY $ 5.30 2,300 $ 12,190.00 2,300 $ 12,190.00 2,277.31 $ 12,069.74 3 JOINT AND CRACK REPAIR LF $ 2.40 24,500 $ 58,800.00 24,500 $ 58,800.00 22,772.0 $ 54,652.80 4 COLD MILLING SY $ 4.95 13,000 $ 64,350.00 13,000 $ 64,350.00 13,505.7 $ 66,853.22 5 EMBANKMENT IN PLACE CY $ 25.00 300 $ 7,500.00 300 $ 7,500.00 250.5 $ 6,262.50 6 TEMPORARY SEEDING AND MULCHING SY $ 0.55 4,840 $ 2,662.00 - $ - - $ 7 INSTALLATION AND REMOVAL OF SILT FENCE LF $ 2.95 1,250 $ 3,687.50 1,250 $ 3,687.50 - $ 8 EROSION CONTROL MATTING SY $ 1.45 3,750 $ 5,437.50 3,750 $ 5,437.50 1,176.9 $ 1,706.51 9 BITUMINOUS SURFACE COURSE TON $ 85.25 3,100 $ 264,275.00 2,533 $ 215,938.25 2,395.95 $ 204,254.74 10 BITUMINOUS TACK COAT GAL $ 2.75 2,600 $ 7,150.00 2,600 $ 7,150.00 1,685.0 $ 4,633.75 11 JOINT SEALING FILLER LF $ 3.00 400 $ 1,200.00 400 $ 1,200.00 400 $ 1,200.00 12 RUNWAY AND TAXIWAY MARKING SF $ 1.85 44,750 $ 82,787.50 44,750 $ 82,787.50 211.00 $ 390.35 13 SURFACE APPLIED THERMOPLASTIC HOLDING POSITION SIGN SF $ 48.00 310 $ 14,880.00 - $ - - $ - 14 REFLECTIVE MEDIA (TYPE 1, GRADATION A) LB $ 1.00 300 $ 300.00 300 $ 300.00 3,117 $ 3,117.00 15 SEEDING AC $ 3,750.00 1 $ 3,750.00 1 $ 3,750.00 0.97 $ 3,637.50 16 TOPSOILING (FURNISHED FROM OFF THE SITE) CY $ 40.00 600 $ 24,000.00 600 $ 24,000.00 175.3 $ 7,012.00 17 MULCHING SY $ 0.60 4,840 $ 2,904.00 4,840 $ 2,904.00 3,585.3 $ 2,151.18 18 NO. 8 AWG, 5KV, L-824, TYPE C CABLE, INSTALLED IN TRENCH DUCT BANK OR CONDUIT $ 1.10 8,000 $ 8,800.00 8,000 $ 8,800.00 6,367.0 $ 7,003.70 19 NO. 6 AWG BARE COPPER COUNTERPOISE WIRE, INSTALLED IN TRENCH, ABOVE THE DUCTBANK OR CONDUIT LF $ 1.20 3,750 $ 4,500.00 3,750 $ 4,500.00 3,155.0 $ 3,786.00 20 NON-ENCASED ELECTRICAL CONDUIT, 2 -INCH SCHEDULE 40 PVC LF $ 2.50 3,750 $ 9,375.00 3,750 $ 9,375.00 3,056.0 $ 7,640.00 21 REMOVE TAXIWAY EDGE LIGHT EA $ 70.00 64 $ 4,480.00 64 $ 4,480.00 64.0 $ 4,480.00 22 L-861T(LED)TAXIWAY EDGE LIGHT - LED EA $ 950.00 62 $ 58,900.00 62 $ 58,900.00 60.0 $ 57,000.00 23 L-804(LED) RUNWAY GUARD LIGHT EA $ 3,400.00 2 $ 6,800.00 2 $ 6,800.00 2.0 $ 6,800.00 24 REMOVE AND REPLACE AIRFIELD GUIDANCE SIGN PANEL, SIZE 1 EA $ 240.00 12 $ 2,880.00 12 $ 2,880.00 12.0 $ 2,880.00 25 REMOVE AND REPLACE AIRFIELD GUIDANCE SIGN PANEL, SIZE 3 EA $ 400.00 8 $ 3,200.00 8 $ 3,200.00 8.0 $ 3,200.00 101 SURFACE APPLIED PAINTED HOLDING POSITION SIGN SF $ 11.00 - $ - 310 $ 3,410.00 310.0 $ 3,410.00 102 DIRECTIONAL BORE 1-2 INCH HDPE CONDUIT LF $ 13.20 - $ - 100 $ 1,320.00 100.0 $ 1,320.00 103 AIRFIELD ELECTRICAL HANDHOLE (L-867) EA $ 1,045.00 - $ - 2 $ 2,090.00 2.0 $ 2,090.00 104 E PROVIDE 1 ADDITIONAL 2 -INCH CONDUIT IN DIRECTIONAL BOR- LF $ 4.40 - 100 $ 440.00 100.0 $ 440.00 Page 1 of 2 PAY ESTIMATE NO. 5 (FINAL) REHABILITATION OF TAXIWAY "A" WATERLOO REGIONAL AIRPORT, WATERLOO, IOWA FAA AIP PROJECT NO. 3-19-0094-44 AECOM PROJECT NO. 60440546 Date: December 10, 2016 ITEM NO. DESCRIPTION UNIT UNIT PRICE CONTRACT QUANTITY CONTRACT AMOUNT AUTHORIZED QUANTITY AUTHORIZED AMOUNT TO DATE QUANTITY TO DATE AMOUNT 150 ADDITIONAL RUNWAY AND TAXIWAY MARKING SF 1.60 - - 30,198.5 $ 48,317.60 114,774.4 183,639.04 TOTALS 1 861,208.50J 850,907.35 I 858,030.02 Prepared by: AECOM Project Engineer Approved by: Aspro anager Waterloo Regional Airport Representative Date Date Director of Aviation 9017 40 176 abed Date Page 2 of 2 Total Earned to Date Stored Materials Subtotal Less Retainage (5%) Subtotal Less Previous Payments Total Amount Due This Estimate Percent Complete $ 858,030.02 $ $ 858,030.02 $ $ 858,030.02 $ 815,128.52 42,901.50 100.0% CITY OF WATERLOO Council Communication Resolution approving award of contract to Mike Dolan Concrete and Masonry, Inc., of Waterloo, Iowa, in the amount of $141,709.87, and approving the contract, bonds, and certificate of Insurance for the FY 2017 Permeable Alley Project, Contract No. 905, and authorize Mayor and City Clerk to execute said documents. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Reviewer Action Date Engineering Thorson, Eric Approved 2/15/2017 - 11:35 AM Clerk Office Even, LeAnn Approved 2/15/2017 - 2:00 PM SUBJECT: Submitted by: Source of Funds: Resolution approving award of contract to Mike Dolan Concrete and Masonry, Inc., of Waterloo, Iowa, in the amount of $141,709.87, and approving the contract, bonds, and certificate of Insurance for the FY 2017 Permeable Alley Project, Contract No. 905, and authorize Mayor and City Clerk to execute all necessary documents. Submitted By: Wayne Castle, PLS, PE, Associate Engineer Stormwater Fees Page 95 of 405 CITY OF WATERLOO Council Communication Resolution approving award of contract to Wapsi Pines Lawn Care & Landscaping, of Cedar Falls, Iowa in the amount of $17,150.00, and approving the contract, bonds, and certificate of Insurance for the FY 2017 Tree Clearing - City Composting Site Project, Contract No. 927, and authorize Mayor and City Clerk to execute said documents. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Engineering Engineering Engineering Clerk Office SUBJECT: Submitted by: Source of Funds: Reviewer Thorson, Eric Ross, Tracia Thorson, Eric Even, LeAnn Action Rejected Approved Approved Approved Date 2/15/2017 - 11:36 AM 2/15/2017 - 11:39 AM 2/15/2017 - 11:39 AM 2/15/2017 - 2:01 PM Resolution approving award of contract to Wapsi Pines Lawn Care & Landscaping, of Cedar Falls, Iowa in the amount of $17,150.00, and approving the contract, bonds, and certificate of Insurance for the FY 2017 Tree Clearing - City Composting Site Project, Contract No. 927, and authorize Mayor and City Clerk to execute all necessary documents documents. Submitted By: Dennis Gentz, PE, Assistsant City Engineer Sanitation Funds Page 96 of 405 CITY OF WATERLOO Council Communication Resolution approving Supplemental Agreements to 60/20/20 Railroad Surface Crossing Repair Agreements, for the E. 4th Street and Nevada Street Crossings, to clarify the maximum amount of retainage that Highway Authority may elect to retain, when making progressive payments to Company, as provided under Section IX of the aforesaid separate agreement. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Reviewer Action Date Engineering Thorson, Eric Approved 2/15/2017 - 11:37 AM Clerk Office Even, LeAnn Approved 2/15/2017 - 2:08 PM ATTACHMENTS: Description Type D RR retainage agreements Cover Memo SUBJECT: Submitted by: Summary Statement: Resolution approving Supplemental Agreements to 60/20/20 Railroad Surface Crossing Repair Agreements, for the E. 4th Street and Nevada Street Crossings, to clarify the maximum amount of retainage that Highway Authority may elect to retain, when making progressive payments to Company, as provided under Section IX of the aforesaid separate agreement. Submitted By: Jeff Bales, Associate Engineer These proposed agreements are with the Chicago, Central, & Pacific Railroad Company (CC&P) and requires the City to promptly reimburse the CC&P for an amount not less that 97% of the invoiced amount for the 60/20/20 Railroad Surface Crossing Repair Agreements. Page 97 of 405 RETAINAGE AGREEMENT This Retainage Agreement ("AGREEMENT") is made and entered into by and between the CITY OF WATERLOO IOWA and the CHICAGO, CENTRAL & PACIFIC RAILROAD COMPANY, effective as of the date of latest execution shown below: KNOWN ALL PERSONS BY THESE PRESENTS: WHEREAS, the City of Waterloo, Iowa (hereinafter referred to as HIGHWAY AUTHORITY) is a political subdivision organized and existing under the laws of the State of Iowa; that its official mailing address is 715 Mulberry Street, Waterloo, Iowa, 50701; and WHEREAS, the Chicago, Central & Pacific Railroad Company (hereinafter referred to as COMPANY) is a corporation organized and existing under the laws of the State of Delaware and duly authorized to conduct business in the State of Iowa; that it operates a common carrier service by railroad between points in Iowa and between points in other states; that its principal offices are located at 17641 South Ashland Avenue, Homewood, Illinois 60430-1345; and WHEREAS, the HIGHWAY AUTHORITY initiated the request to the State of Iowa to secure said State of Iowa safety funds to assist in the costs of upgrading and reconstructing the CROSSING to an enhanced surface. The HIGHWAY AUTHORITY and COMPANY may become parties to a separate agreement being provided by the State of Iowa pursuant to Iowa Code Chapter 327G and 761 Iowa Adminstrative Code, Chapter 821 to upgrade and reconstruct the at -grade crossing (hereinafter referred to as the CROSSING) located at the location where Nevada Street (DOT No. 307117K) crosses over the COMPANY tracks in Waterloo, Iowa, which is attached hereto as Exhibit A. WHEREAS, the HIGHWAY AUTHORITY and COMPANY are entering into this AGREEMENT for the purpose of simply clarifying the maximum amount of retainage that HIGHWAY AUTHORITY may elect to retain when making progressive payments to COMPANY as provided under Section IX of the aforesaid separate agreement attached hereto as Exhibit A. NOW, THEREFORE, in consideration of the stated premises and the mutual covenants and agreements of the parties as herein contained and for other valuable consideration flowing unto the parties, the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows: 1. The HIGHWAY AUTHORITY shall promptly reimburse the COMPANY in amount not less than NINETY-SEVEN per cent (97%) of any amount progressively billed by COMPANY to HIGHWAY AUTHORITY covering the upgrade and Page 98 of 405 reconstruction of the CROSSING as aforementioned and provided for in Exhibit A. 2. The COMPANY shall agree to enter a separate tri -party agreement presented by the State of Iowa covering the upgrade and reconstruction of the CROSSING as aforementioned and provided for in Exhibit A.. It is agreed between the COMPANY and HIGHWAY AUTHORITY to incorporate by reference the "WHEREAS" clauses set forth above as if fully set forth herein, and each party agrees to be fully bound thereby. This AGREEMENT is binding upon all successors and assigns, and supersedes all other offers, negotiations, and agreements related to the PROJECT. Modifications to this AGREEMENT, and amendments or addenda thereto, must be agreed upon in writing by both parties and executed by both parties. IN WITNESS WHEREOF, the parties have executed this AGREEMENT after being duly authorized to do so. Authorized by the Council of the City of Waterloo, Iowa, on the day of March, 20, per Resolution and executed by the of the of acting by and on behalf of City of Waterloo, Iowa, this the day of March, 20 City of Waterloo BY: Title , City of Waterloo ATTEST: Clerk, City of Waterloo Approved by Tom L. Bourgonje, Regional Chief Engineer, of the Chicago, Central & Pacific Railroad Company, this the day of March, 20 . BY: Regional Chief Engineer 2 Page 99 of 405 RETAINAGE AGREEMENT This Retainage Agreement ("AGREEMENT") is made and entered into by and between the CITY OF WATERLOO IOWA and the CHICAGO, CENTRAL & PACIFIC RAILROAD COMPANY, effective as of the date of latest execution shown below: KNOWN ALL PERSONS BY THESE PRESENTS: WHEREAS, the City of Waterloo, Iowa (hereinafter referred to as HIGHWAY AUTHORITY) is a political subdivision organized and existing under the laws of the State of Iowa; that its official mailing address is 715 Mulberry Street, Waterloo, Iowa, 50701; and WHEREAS, the Chicago, Central & Pacific Railroad Company (hereinafter referred to as COMPANY) is a corporation organized and existing under the laws of the State of Delaware and duly authorized to conduct business in the State of Iowa; that it operates a common carrier service by railroad between points in Iowa and between points in other states; that its principal offices are located at 17641 South Ashland Avenue, Homewood, Illinois 60430-1345; and WHEREAS, the HIGHWAY AUTHORITY initiated the request to the State of Iowa to secure said State of Iowa safety funds to assist in the costs of upgrading and reconstructing the CROSSING to an enhanced surface. The HIGHWAY AUTHORITY and COMPANY may become parties to a separate agreement being provided by the State of Iowa pursuant to Iowa Code Chapter 327G and 761 Iowa Adminstrative Code, Chapter 821 to upgrade and reconstruct the at -grade crossing (hereinafter referred to as the CROSSING) located at the location where East 4`'' Street (DOT No. 307122G) crosses over the COMPANY tracks in Waterloo, Iowa, which is attached hereto as Exhibit A. WHEREAS, the HIGHWAY AUTHORITY and COMPANY are entering into this AGREEMENT for the purpose of simply clarifying the maximum amount of retainage that HIGHWAY AUTHORITY may elect to retain when making progressive payments to COMPANY as provided under Section IX of the aforesaid separate agreement attached hereto as Exhibit A. NOW, THEREFORE, in consideration of the stated premises and the mutual covenants and agreements of the parties as herein contained and for other valuable consideration flowing unto the parties, the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows: 1. The HIGHWAY AUTHORITY shall promptly reimburse the COMPANY in amount not less than NINETY-SEVEN per cent (97%) of any amount progressively billed by COMPANY to HIGHWAY AUTHORITY covering the upgrade and Page 100 of 405 reconstruction of the CROSSING as aforementioned and provided for in Exhibit A. 2. The COMPANY shall agree to enter a separate tri -party agreement presented by the State of Iowa covering the upgrade and reconstruction of the CROSSING as aforementioned and provided for in Exhibit A.. It is agreed between the COMPANY and HIGHWAY AUTHORITY to incorporate by reference the "WHEREAS" clauses set forth above as if fully set forth herein, and each party agrees to be fully bound thereby. This AGREEMENT is binding upon all successors and assigns, and supersedes all other offers, negotiations, and agreements related to the PROJECT. Modifications to this AGREEMENT, and amendments or addenda thereto, must be agreed upon in writing by both parties and executed by both parties. IN WITNESS WHEREOF, the parties have executed this AGREEMENT after being duly authorized to do so. Authorized by the Council of the City of Waterloo, Iowa, on the day of March, 20 , per Resolution and executed by the of the of , acting by and on behalf of City of Waterloo, Iowa, this the day of March, 20_. City of Waterloo BY: Title , City of Waterloo ATTEST: Clerk, City of Waterloo Approved by Tom L. Bourgonje, Regional Chief Engineer, of the Chicago, Central & Pacific Railroad Company, this the day of March, 20_. BY: Regional Chief Engineer 2 Page 101 of 405 CITY OF WATERLOO Council Communication Resolution approving a request by JDE Engineering, on behalf of the City of Waterloo, for the final plat of Wagner Road Subdivision, a six (6) lot industrial subdivision, located to the north of 3488 Wagner Road. City Council Meeting: 2/20/2017 Prepared: 2/7/2017 REVIEWERS: Department Planning & Zoning Clerk Office Reviewer Schroeder, Aric Even, LeAnn ATTACHMENTS: Description D Attachments - Wagner Road Subdivision SUBJECT: Submitted by: Recommended Action: Summary Statement: Action Approved Approved Type Final Plat Cover Memo Date 2/15/2017 - 10:36 AM 2/15/2017 - 1:56 PM Resolution approving a request by JDE Engineering, on behalf of the City of Waterloo, for the final plat of Wagner Road Subdivision, a six (6) lot industrial subdivision, located to the north of 3488 Wagner Road. Submitted By: Noel Anderson, Community Planning and Development Director Approval Transmitted herewith is a request for the final plat of Wagner Road Subdivision, a six lot industrial subdivision located to the north of 3488 Wagner Road. Please find attached to this council letter the following items: • Staff report • Aerial photograph • Final Plat • Legal Description • Report of City Engineer The request would not appear to have a negative impact on the surrounding neighborhood or land use, and the request would not appear to have a negative impact on vehicular or pedestrian traffic movements in the area. The area is served by Wagner Road, which is classified as a Collector. The majority of the property is located within a Special Flood Hazard Area (Zone AE, 100 -year floodplain) as indicated by the Federal Insurance Administration's Flood Insurance Rate Maps, Community Number 190025 and Panel Numbers 0167F and 0186F, dated July 18, 2011. As the plat develops, new development will need to adhere to proper floodplain development provisions. The proposed lots will be graded in a manner that the locations where the building would be located will be elevated above the Page 102 of 405 base flood elevation. The final plat consists of six lots, containing approximately 13.95 acres of land, and lot sizes are about 2.32 acres in size. The proposed plat is located just to the north of 3488 Wagner Road along the east side of Wagner Road, and is zoned "M-1" Light Industrial District, which is intended to provide for areas of the community which are suitable for industrial development adjacent to commercial districts. Any outside storage of materials, equipment or product shall be accessory to the Principal Permitted Use and shall not include the outside storage of junk or salvage material or similar debris except in an approve recycling yard (salvage yard) and except for inoperable vehicles being restored to miming condition as part of an auto repair shop. At the September 13, 2016 Planning, Programming and Zoning Commission meeting, the Commission unanimously recommended approval of the final plat. Expenditure Required: N/A Source of Funds: N/A Policy Issue: Land Use and Economic Development. Alternative: N/A Background Information: N/A Legal Descriptions: THAT PART OF THE SOUTHWEST QUARTER OF THE NORTHWEST FRACTIONAL QUARTER OF SECTION NO. THREE (3), TOWNSHIP EIGHTY-NINE (89) NORTH, RANGE NO. THIRTEEN (13) WEST OF THE FIFTH (5TH) PRINCIPAL MERIDIAN, BLACK HAWK COUNTY, IOWA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF THE SOUTHWEST QUARTER (SW1/4) OF THE NORTHWEST QUARTER (NW1/4) OF SAID SECTION; THENCE NORTH 88°51'36" EAST, 70.01 FEET TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF WAGNER ROAD AS DESCRIBED IN BOOK 548, PAGE 735 AND ALSO THE POINT OF BEGINNING; THENCE NORTH 00° 14'49" WEST ALONG SAID EAST LINE 827.10 FEET (827 FEET -RECORD); THENCE SOUTH 88°51'36" WEST, 5.00 FEET; THENCE NORTH 00°14'49" WEST, 73.01 FEET; THENCE NORTH 88°51'36" EAST, 680.41 FEET TO THE EAST LINE OF THAT PARCEL DESCRIBED IN LAND DEED BOOK 536, PAGE 555; THENCE SOUTH 00°08'59" EAST, 990.13 FEET TO THE SOUTH LINE OF SAID NORTHWEST QUARTER (NW1/4); THENCE SOUTH 88°51'36" WEST, 673.88 FEET TO THE POINT OF BEGINNING, CONTAINING 13.95 ACRES, MORE OR LESS. Page 103 of 405 REQUEST: APPLICANT/ OWNER: GENERAL DESCRIPTION: IMPACT ON NEIGHBORHOOD & SURROUNDING LAND USE: September 13, 2016 Request by JDE Engineering, PLC on the behalf of the City of Waterloo for the final plat of Wagner Road Subdivision, a six lot industrial subdivision, located north of 3488 Wagner Road JDE Engineering, 3731 Pheasant Lane, Ste. 201, Waterloo, IA 50701. The owner is the City of Waterloo. The applicant is requesting to plat the property in question for the purposes of creating a six lot industrial park subdivision. The request would not appear to have a negative impact on the surrounding neighborhood or land use. VEHICULAR & The request would not appear to have a negative impact on PEDESTRIAN vehicular or pedestrian traffic movements in the area. The area is TRAFFIC served by Wagner Road, which is classified as a Collector. No new CONDITIONS: streets are proposed in the subdivision. RELATIONSHIP TO There are no nearby recreational trails within the immediate vicinity. RECREATIONAL Potentially it could be looked at adding pedestrian TRAIL PLAN AND accommodations along Wagner Road in the future to better COMPLETE STREETS complete the existing transportation network. POLICY: ZONING HISTORY The area in question is zoned "M-1" Light Industrial District and FOR SITE AND was rezoned from "R-1" One and Two Family Residence District in IMMEDIATE VICINITY: March of 2013. Surrounding land uses and their zoning are as follows: North — Single family residence, zoned "M-1" Light Industrial District. South — Existing industrial development, zoned "M-2" Heavy Industrial District. East — Vacant development ground, zoned "M-2" Heavy Industrial District. West — Waterloo Regional Airport, zoned "M -2,P" Planned Industrial District. DEVELOPMENT The area is comprised of agricultural land and industrial HISTORY: development that has been constructed in recent years. There are some residential uses within the surrounding area. BUFFERS/ No buffers would be required as a part of this platting request. SCREENING However, as the area develops for industrial uses, it may be REQUIRED: necessary to screen the vehicular use area from abutting residential uses to the north. DRAINAGE: The submitted plat shows an 80' storm sewer easement across Lots 1 and 2, which will drain easterly to a drainage channel. As each site is developed, it will be necessary that a storm water detention plan is submitted to show how storm water will be N of 3488 Wagner Rd — Wagner Rd Subdivision — Final Plat Pa'ff18f43of 405 FLOODPLAIN: PUBLIC /OPEN SPACES/ SCHOOLS: UTILITIES: WATER, SANITARY SEWER, STORM SEWER, ETC: RELATIONSHIP TO COMPREHENSIVE LAND USE PLAN: STAFF ANALYSIS — ZONING ORDINANCE: STAFF ANALYSIS — SUBDIVISION ORDINANCE: September 13, 2016 detained on the site. The majority of the property is located within a Special Flood Hazard Area (Zone AE, 100 -year floodplain) as indicated by the Federal Insurance Administration's Flood Insurance Rate Maps, Community Number 190025 and Panel Numbers 0167F and 0186F, dated July 18, 2011. As the plat develops, new development will need to adhere to proper floodplain development provisions. The proposed lots will be graded in a manner that the locations where the building would be located will be elevated above the base flood elevation. There are no schools or public open spaces located within the nearby vicinity. A proposed 40' sanitary sewer easement is shown going north/south through the middle of all lots within the subdivision to allow for a new sanitary sewer extension, however; no sanitary sewer size is indicated. There is an overhead electrical line that runs along the south side of Lot 6 in a 45' wide easement. A 12" water main is shown in Wagner Road just to the west of the platted area. The Future Land Use Map designates this area as Industrial. The plat would be in conformance with the Comprehensive Plan and Future Land Use Map for this Area. Industrial uses are intensive and generally involve production, manufacturing, and/or assembly function. These uses, if placed next to an incompatible use such as residences, may have a dramatic effect on surrounding properties because of their traffic, hours of operation, noise, smell or dust. The final plat consists of six lots, containing approximately 13.92 acres of land, and lot sizes are about 2.32 acres in size. The proposed plat is located just to the north of 3488 Wagner Road along the east side of Wagner Road, and is zoned "M-1" Light Industrial District, which is intended to provide for areas of the community which are suitable for industrial development adjacent to commercial districts. Any outside storage of materials, equipment or product shall be accessory to the Principal Permitted Use and shall not include the outside storage of junk or salvage material or similar debris except in an approve recycling yard (salvage yard) and except for inoperable vehicles being restored to running condition as part of an auto repair shop. The submitted plat appears to be in accordance with the Subdivision Ordinance. N of 3488 Wagner Rd — Wagner Rd Subdivision — Final Plat P a' X 05 of 405 September 13, 2016 STAFF Therefore, staff recommends that the request for the final plat of RECOMMENDATION: Wagner Road Subdivision be approved for the following reasons: 1. The request would not appear to have a negative impact on the surrounding area. 2. The request would not appear to have a negative impact upon pedestrian and traffic conditions within the surrounding area. 3. The request is in conformance with the Future Land Use Map and Comprehensive Plan for this area, which designate it as Industrial. 4. The subdivision would appear to be similar to adjacent industrial subdivisions in the area. N of 3488 Wagner Rd — Wagner Rd Subdivision — Final Plat Pgd& I0g of 405 City of Waterloo Planning, Programming and Zoning Commission September 13, 2016 North of 3488 Wagner Road Wagner Road Subdivision Final Plat JDE Engineering Page 107 of 405 City of Waterloo Planning, Programming and Zoning Commission September 13, 2016 North of 3488 Wagner Road Wagner Road Subdivision Final Plat JDE Engineering Page 108 of 405 ' ;; E _�� �\y /� A, N44, f,�- ✓`tiT1�1 400 200 0 400 %;700. %° (Feet City of Waterloo Planning, Programming and Zoning Commission September 13, 2016 North of 3488 Wagner Road Wagner Road Subdivision Final Plat JDE Engineering Page 109 of 405 ' ;; E _����y ih,,1�� f,R- ✓`tiT11 400 200 0 400 %7173.;--%° %° (Feet FINAL PLAT OF "WAGNER ROAD SUBDIVISION" WATERLOO, BLACK HAWK COUNTY, IOWA SEPTEMBER 2016 PS Great Pains Survey, Inc. LOCATION MAP NOT TO SCALE) PROJECT LOCATION NOTES: AREA OF "Wagner Road Subdivision" 13.45 Acres ADDRESSES: DEVELOPER: ENGINEER: None at this time City of Waterloo JOE Engineering. PLC Attn: Jim Ellis 3731 Pheasant Lane, Suite 0201 Waterloo, IA, 50701 LAND SURVEYOR: Great Plains Survey, Inc. Attn: Jeffrey R. Hutton, P.L.S. 407 Sycamore St. La Porte City, IA 50651 FLOOD PLAIN: In Flood Plain FIRM 1900250167E (Zone AE, Zone X Shaded and Zone X Unshaded) ZONING: M-1, Light Industrial LEGAL DESCRIPTION: THAT PART OF THE SOUTHWEST QUARTER OF THE NORTHWEST FRACTIONAL OUARTER OF SECTION NO. THREE 131, TOWNSHIP EIGHTY-NINE (841 NORTH, RANGE NO. THIRTEEN 1131 WEST DF THE FIFTH 15TH) PRINCIPAL MERIDIAN, BLACK HAWK COUNTY. IOWA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF THE SOUTHWEST QUARTER (SWI/41 OF THE NORTHWEST QUARTER (NWI/4) OF SAID SECTION; THENCE NORTH 88051'36" EAST, 70.01 FEET TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF WASHER ROAD AS DESCRIBED 1N BOOK 546, PAGE 735 AND ALSO THE POINT OF BEGINNING, THENCE NORTH 00'14'49" WEST ALONG SAID EAST LINE 827.10 FEET 1827 FEET -RECORD); THENCE SOUTH 86051'36" WEST. 5.00 FEET; THENCE NORTH 00014'44" WEST, 73.01 FEET; THENCE NORTH 88051'36" EAST, 680.41 FEET TO THE EAST LIRE OF THAT PARCEL DESCRIBED IN LAND DEED BOOK 536, PAGE 555; THENCE SOUTH 00008'54" EAST. 490.17 FEET TO THE SOUTH LINE OF SAID NORTHWEST STARTER INWI/41; THENCE SOUTH 88'51'36" WEST, 673.88 FEET TO TEE POINT OF BEGINNING, CONTAINING 13.95 ACRES, MORE OR LESS. DATED: 09/16/2016 REVISED: 09/30/20 tetChr cx+vrr riot rms Iww evvarino 0000001 . orepved end the reioted svvey 0* ws oerfs'$OA Dy under ee direct persagl &Loon. tan aid thor I am I ;cased Pro0essic001 Lund Scree 01 0Wer the Iws of R. NU 11U1 LICENSE N0. 17929 011E Nr i icense is subject to rem. oe Lbce,Der 31. 2011. This netifi00ti0n oppli0a m!Y tO the 00000 up. .01, it <meas. FILENAME: O:11510211Cad\Plets\FINAL PLAT.dgn MODEL: Project Overview DATE: 12117/201610:19:02 AM Page 110 of 405 SOD '1449.0 1177.59' (1177.691 FAD. CUT "X" IN PCC WAGNER RD. W. LINE NWI/1 SEC. 3-1894-R13w & E. LINE NEI/4 SEC. 4-T89N-R13. FINAL PLAT OF "WAGNER ROAD SUBDIVISION" WATERLOO, BLACK HAWK COUNTY, IOWA SEPTEMBER 2016 NW COR. NWI/4 NWI/4 FND, 3" BRASS MONUMENT 7" E. OF IN KC WAGNER ROAD (314 MISC. 891 END. I/O" REBAR 0.10' M. OF LINE N89°02'O8IE 229.90' 1230' 651 0') .\0*14 80I.,!% RC. 5/8" REBAR WI YELLOW CP .17929 586'51'36W 5.00' EDGE OF EXISTING HIGHWAY POINT OF COMENCENENT SW COR. SW1/4 NWI/4 FAD. 3' BRASS MON. IN PCC WAGNER RD. 100C. 2008-0166591 1709 ' 164,89' FND. 1/2" REBAR 0.11' W. OF LINE & APPROX. 5.0' SW OF FENCE POST PRESENTLY ESTABLISHED EASTERLY RIGHT-OF-WAY LINE Cr WAGNER RD. SCALE: 1' = 100' 0` 25' 50' 700' - • 1 ' 5002218"6 /101.98' 1107.949 1-14139°4117241 158.8 9' LEGEND: A FOUND SECTION CORNER AS NOTED • FOUND PINCHED PIPE UNLESS OTHERWISE NOTED 0 SET 5/8" REBAR W/YELLOW CAP .17929 UNLESS OTHERWISE NOTED ( ) DEED RECORD BEARING/DISTANCE INESI RECORD FROM HOLLAND PLAT FILE: 2013-00023442 .51 57.7%!'f5IRA -. • N89756'40' BOB' 1354.781 1356.6' HE 0.4:0 e501-1 10°V;5' a*0 N88°51'36"1 880.41' c1. I FNO. 5/8" REBAR WI YELLOW CAP .17929 STORM SEWER /DRAINAGE EASEMENT AA'675.15' 302.15' FND. PINCHED PIPE 2.32' WEST AND 1,55' NORTH OF COR. 7,59 231 S88°5116 74.90' — 70.01' 1401 SANITARY SEWER EASEMENT 8°51'3611 674.64' 31 43.10' FND. 1/2" REBAR W/ORANGE CAP .16264 77. cA 938°51'36N 674.39' 5,0\1545 S88'151'3611 674.14' EXIST TNG UTILITY EASEMENT 304.39' S. LINE SWI/4 NW1/4 POINT OF BEGINNING END. 5/8" REBAR W/ YELLOW CAP .17929 SES°51'36"W 673.28' S88°51'36N 743.841' (743.90' END. I/2" RERAN 9/ORANGE CAP .16264 E. LINE LAND DEED SK. 536, PG, 555) ST. LA PORTE CITY. IOWA Y R. HUTTON, P.L.S. * 407 SYCA SHEET NO. 2 of2 FILENAME: 0:11510211CadtPlats1FINAL PLATTIgn MODEL: Project Overview DATE: 12117/2016 10:18134 AM Page 111 of 405 SURVEYOR'S CERTIFICATE WAGNER ROAD SUBDIVISION IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA, is described as follows: LAND DESCRIPITON: THAT PART OF THE SOUTHWEST QUARTER OF THE NORTHWEST FRACTIONAL QUARTER OF SECTION NO. THREE (3), TOWNSHIP EIGHTY-NINE (89) NORTH, RANGE NO. THIRTEEN (13) WEST OF THE FIFTH (5TH) PRINCIPAL MERIDIAN, BLACK HAWK COUNTY, IOWA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF THE SOUTHWEST QUARTER (SW 1/4) OF THE NORTHWEST QUARTER (NW 1/4) OF SAID SECTION; THENCE NORTH 88°51'36" EAST, 70.01 FEET TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF WAGNER ROAD AS DESCRIBED IN BOOK 548, PAGE 735 AND ALSO THE PONT OF BEGINNING; THENCE NORTH 00°14'49" WEST ALONG SAID EAST LINE 827.10 FEET (827 FEET -RECORD); THENCE SOUTH 88°51'36" WEST, 5.00 FEET; THENCE NORTH 00°14'49" WEST, 73.01 FEET; THENCE NORTH 88°51'36" EAST, 680.41 FEET TO THE EAST LINE OF THAT PARCEL DESCRIBED IN LAND DEED BOOK 536, PAGE 555; THENCE SOUTH 00°08'59" EAST, 990.13 FEET TO THE SOUTH LINE OF SAID NORTHWEST QUARTER (NW1/4); THENCE SOUTH 88°51'36" WEST, 673.88 FEET TO THE POINT OF BEGINNING, CONTAINING 13.95 ACRES, MORE OR LESS. I hereby certify that this lana surveying doweent los prepared and the related survey 'Mark was performed by we ar oder my direst personal supervision and that I am a duly licensed Professional Lend Surveyor under the leve of the State cf I. ,tea ice. frf � Zj yjz4317 y[flREl R.AI}T1IN LICENSE NO. 17929 DATE My license Is subject to renewal an Decaeber It. 2017. Jhls csrtlflootlan applies only to the pops noon wloh 1f appears. Page 112 of 405 DEED OF DEDICATION WAGNER ROAD SUBDIVISION WATERLOO, BLACK HAWK COUNTY, STATE OF IOWA The City of Waterloo, Iowa ("Owner"), being desirous of platting the land described in the attached Certificate of Survey, by , a licensed land surveyor, dated , 2016, does by these presents designate and set apart the aforesaid premises as a subdivision of the City of Waterloo, Black Hawk County, Iowa, the same to be hereafter known as and called Wagner Road Subdivision, Waterloo, Black Hawk County, Iowa (the "Property"), all of which is with the free consent and desire of the undersigned, and the undersigned hereby dedicates and sets apart for public use the streets and avenues as shown on the attached plat. The undersigned hereby covenants and agrees for itself, its successors and assigns, that said subdivision shall be and the same is hereby made subject to the following restrictions as fully and effectively for all intents and purposes as if the same were contained and set forth in each deed, conveyance and mortgage that this grantor or its successors in interest may hereafter make and that such restrictions shall run with the land in the particulars hereinafter stated, to wit: ARTICLE I DEDICATION; RESTRICTIONS 1. Establishment of Restrictions. The Property is now held and shall hereafter be held, transferred, sold, leased, conveyed and occupied, subject to the covenants, conditions, restrictions and easements set forth in this instrument, each of which shall run with the land and shall be binding upon the inure to the benefit of each and every parcel of the Property, and each of which shall apply to and bind and benefit and may be enforced by the owner of each or any parcel of the Property, and the heirs, assignees and successors in interest of each and every owner of a parcel or parcels. 2. Utilities. (a) Any company or agency supplying electricity, gas or communication service to any parcel in said addition shall have the right to construct, maintain and operate permanent underground gas, electricity, or communication feeder or service facilities, within the easement lines as shown on the plat of said addition attached hereto. (b) Further, the City of Waterloo and any public company having a franchise for the distribution and sale of gas, electricity, water or communication service in said City shall have the right to construct and maintain underground sewer, water, gas and communication service lines within the easement lines as shown on the plat attached hereto. The proprietor, agents and workmen of all such service corporations or agencies shall have the right to reasonable access to their said services and installation for the purpose of the proper construction and maintenance of their lines and equipment. ARTICLE II USE OF THE PROPERTY 1. Permitted Use. Unless otherwise specifically prohibited by the City of Waterloo or other governmental agency, permitted uses shall be distribution warehouse, office facilities, technological or business operation, manufacturing, assembly facility, laboratory and research. Page 113 of 405 2. Uses Not Permitted. The following uses are expressly prohibited: Auto salvage yard, feed and fuel yard, poultry or meat killing, poultry or meat processing plant or residential use. This is in addition to limitations called for in the zoning restrictions or ordinances applicable to the Property from time to time. 3. Other Conditions Not Permitted. Any facility or operation which causes a nuisance due to noise, odor, rubbish accumulation and/or release of hazardous materials shall not be permitted. 4. Temporary Structures. Temporary structures will be allowed to be used only as construction offices and/or small tool sheds. The temporary structures are to be removed within two (2) years after placement. ARTICLE III DEVELOPMENT STANDARDS 1. Vehicle Parking. All vehicle parking requirements must be provided for within the property boundaries and shall be set back from all property lines with street frontage a minimum of fifteen (15) feet. On -street parking will not be permitted. 2. Truck Parking and Maneuvering. The truck dock and maneuvering area must be to the rear or side of the building. The maneuvering area for trucks must be such as to allow for the truck to back up to the buildings without using the street as part of the maneuvering area. 3. Pavement Requirement. The entire area for auto parking, truck parking and maneuvering shall be paved. Empty truck parking area may be gravel. Outside storage area, where approved, may be gravel. 4. Outside Storage. Outside storage will not be allowed, unless it is totally screened and in the rear yard only. 5. Display Space. Outside display of a product, material and/or equipment will be allowed, provided that these shall not be more than three (3) such items in the front and side yards combined. 6. Landscape. The entire area that is not covered with building and pavement must have grass/landscaping in accordance with City of Waterloo requirements. 7. Building Materials. All exterior faces of buildings shall be finished. 8. Fences. Where fences are to be installed, the fence shall be located entirely on the subject parcel and shall not be closer than ten feet from the street's right-of-way, and the area between the fence and the right-of-way shall be grassed and landscaped. The finished side of any fence shall be placed in such a manner as to face outward from the property. 2 Page 114 of 405 ARTICLE IV ORGANIZATION AND APPROVAL 1. Plan Approval. Proposed site plans will be reviewed through the City of Waterloo site plan process. Existing owners of land in the subdivision shall be notified of the plan review process at the time said plan is submitted to the City for review. 2. Time of Covenants. Unless otherwise extended or removed, these restrictions shall be applicable for a term of twenty-one (21) years commencing upon the recordation hereof and thereafter may be renewed as provided in Iowa law. At any time, any of the restrictions may be terminated by written agreement joined in by the owners of 90% in area of the land subject hereto. 3. Amendment. These restrictions may only be amended in writing by the agreement of not less than the owners of 90% in area of the land subject hereto. Any amendment to these restrictions shall be recorded. Dated this day of , 2016. CITY OF WATERLOO, IOWA By: Quentin M. Hart, Mayor Attest: STATE OF IOWA ) ) ss. BLACK HAWK COUNTY ) City Clerk / Deputy Clerk Acknowledged before me on , 2016 by Quentin M. Hart and as Mayor and City Clerk / Deputy Clerk, respectively, of the City of Waterloo, Iowa. Notary Public 3 Page 115 of 405 CITY OF WATERLOO, IOWA WATERLOO ENGINEERING DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4312 Fax (319) 291-4262 City Engineer • email: city.engineer@waterloo-ia.org December 21, 2016 9131 9641 Aric Schroeder, City Planner Planning, Programming & Zoning Commission Waterloo City Hall Waterloo, IA 50703 RE: FINAL PLAT WAGNER ROAD SUBDIVISION Dear Aric: This final plat has been reviewed, and it has been determined that it meets the requirements of the applicable portions of Section 3, 4 and 5 of Ordinance 2997, Subdivision Ordinance. It is recommended that this final plat be approved. Since twirls r o 1of Dennis . Gentz, Assistant City Engineer CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 116 of 405 Wagner Road Subdivision Looking northeast from Wagner Road at the southwestern portion of the proposed subdivision. Looking west across Wagner Road at the Waterloo Regional Airport directly across the road from the proposed subdivision. Looking southeast from Wagner Road at the northwestern portion of the proposed subdivision. Looking at existing industrial development to the south of the proposed subdivision. Page 117 of 405 CITY OF WATERLOO Council Communication Resolution approving the Final Plat of Southland Park Fifth Addition, a re -plat of lots C-1, C-2, and C-3 in Southland Park Third Addition, to allow for the development of six (6) new residential lots. City Council Meeting: 2/20/2017 Prepared: 2/7/2017 REVIEWERS: Department Planning & Zoning Planning & Zoning Planning & Zoning Clerk Office Reviewer Schroeder, Aric Hyberger, Seth Schroeder, Aric Even, LeAnn Action Rejected Approved Approved Approved ATTACHMENTS: Description D Southland Park Third Addition Replat Documentation SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Type Cover Memo Date 12/7/2016 - 10:20 AM 2/15/2017 - 10:27 AM 2/15/2017 - 10:39 AM 2/15/2017 - 2:10 PM Resolution approving the Final Plat of Southland Park Fifth Addition, a re - plat of lots C-1, C-2, and C-3 in Southland Park Third Addition, to allow for the development of six (6) new residential lots. Submitted By: Noel Anderson, Community Planning and Development Director Approval Transmitted herewith is a request for the final plat, a Re -plat of Lots C-1, C- 2, and C-3 in Southland Park Third Addition to allow for the development of 6 new residential lots. Please find attached to this council letter the following items: • Staff report • Aerial photograph • Final Plat • Legal Description • Deed of Dedication • Report of City Engineer At the November 1, 2016 Planning, Programming and Zoning Commission meeting, the Commission voted 5-3 to approve the final plat. N/A N/A Page 118 of 405 Policy Issue: Land Use Alternative: N/A Background Information: N/A Legal Descriptions: SOUTHLAND PARK THIRD ADDITION LOTS C -I, C-2, and C-3 CITY OF WATERLOO, BLACKHAWK COUNTY IOWA Page 119 of 405 REQUEST: APPLICANT: GENERAL DESCRIPTION: IMPACT ON NEIGHBORHOOD & SURROUNDING LAND USE: VEHICULAR & PEDESTRIAN TRAFFIC CONDITIONS: RELATIONSHIP TO RECREATIONAL TRAIL PLAN: ZONING HISTORY FOR SITE AND IMMEDIATE VICINITY: DEVELOPMENT HISTORY: BUFFERS/ SCREENING REQUIRED: DRAINAGE: February 2, 2017 Request by Midwest Development Company, for the preliminary plat of a Replat of Lots C-1, C-2, and C-3 in the Southland Park Third Addition to allow for the development of 6 new residential lots. Midwest Development Company, 411 1St Avenue, Suite 410, Cedar Rapids, IA 52401-1368 The applicant is requesting to plat 6 new residential lots, just north of Charm Drive, and adjacent to 2950 Southland Drive. The preliminary plat will increase the number of residential lots from 3 to 6 The request to preliminary plat the area would not appear to have a negative impact upon the surrounding area. It would appear that the proposed residential lots would blend in well with the surrounding neighborhood which consists of a commercial building and single family homes. The average lot size within a 250 feet buffer of the project area for residential lots is 19,776 square feet. The average lot size for the 6 proposed residential lots is 24,554 square feet. The proposed development would be served by Southland Drive and Charm Drive, which are classified as Local Streets, and Highway 63 which is classified as a Principal Arterial. A sidewalk is listed on the preliminary plat and will link up with sidewalks to the west and east of the property. The Sergeant Road Recreational Trail runs along the northwest side of Highway 63. No, trails will be impacted by this development. The area in question was rezoned from "A-1" Agriculture to "R-3, R- P" Planned Residence District on November 24, 1975. Surrounding land uses and their zoning designations are as follows: North — Vacant land, zoned "B -P" Business Park District. South — Vacant land, zoned "R -3,R -P" Planned Residence District. East — Single family homes, zoned "R -3,R -P" Planned Residence District. West — Existing professional office, zoned "R -3,R -P" Planned Residence District. The surrounding area consists predominantly of light to moderate density residential uses in the adjacent, nearby areas, with development occurring from the 1980s to the 2000s. Effective visual screening will be placed along the westerly property line of lot 6, adjoining the existing professional office located at 2950 Southland Drive. The preliminary plat request would appear to have an impact on drainage in the area due to the close proximity of Prescott's Creek. Southland Park Third Addition - Preliminary Plat Pgd> 1213 of 405 FLOODPLAIN: PUBLIC /OPEN SPACES/ SCHOOLS: UTILITIES: WATER, SANITARY SEWER, STORM SEWER, ETC: RELATIONSHIP TO COMPREHENSIVE LAND USE PLAN: STAFF ANALYSIS — ZONING ORDINANCE: February 2, 2017 However, the preliminary plat does denote a storm water detention area, drainage easement, storm water detention outlet pipe, and a berm on the northern edge of the proposed development. A preliminary detention basin design narrative has been provided. The majority of the area in question is not located within a Special Flood Hazard Area as indicated by the Federal Insurance Administration's Flood Insurance Rate Map Community Number 190025 and Panel Number 0284F, dated July 18, 2011. The northern area of lots 1, 2, and 3 are in the 500 -year floodplain and a northern sliver of lots 1 and 2 are in the 100 -year floodplain. The Preliminary Plat denotes that no homes are proposed to be constructed in the 100 -year or 500 -year floodplain. Prescott's Creek is located directly to the north of the proposed development. There are no nearby schools in the vicinity. There is a 12" sanitary sewer line and storm sewer that is located within Charm Drive to the south of the proposed residential subdivision. There is also a 10' utility easement on the southern edge of the property. The project area currently has storm sewer, water, and sanitary sewer services readily available in the project area. The proposed development is not in conformance with the Future Land Use Map which designates this area as Mixed Commercial: Medium to High Density Residential; Professional Offices; and Compatible Commercial. However, the proposed preliminary plat is in conformance with the Comprehensive Plan which supports Land Use Goal Number 4, in which the community should work to offer a variety of housing opportunities to residents. The Future Land Use Map is used as a guide when making land use decisions. The City of Waterloo is currently in the beginning stages of updating its Comprehensive Plan and it will be necessary to change the Future Land Use Map to reflect the change in the proposed land use. The applicant is requesting to preliminary plat 3.4 acres and increases the number of residential lots for the project area from 3 to 6 lots. The size of the lots range in size from 17,747 sf to 34,815 sf. Lot widths range from 56' to 91', and ranging from 195' to 350' deep. Each property shows a 25' setback from the front and 100' or more for the rear property lines, and over 5' on the sides. These setbacks all meet the minimum requirements of the "R -3,R -P" Planned Residence District. The average lot size for residential properties within a 250' buffer of the project area is 19,776 square feet. The average width of the properties is approximately 100 linear feet, which is a little higher than the 69.58 linear feet average for the proposed development, but the average lot depth for those properties within the 250 feet buffer are only approximately 110 linear feet, as opposed to the Southland Park Third Addition - Preliminary Plat Pa'ff 12'13 of 405 February 2, 2017 250 feet average for the proposed development. The area is zoned "R -3,R -P" Planned Residence District which is intended and designed to provide for greater flexibility and diversification of land uses. Staff believes that the new residential development will have a positive impact upon the surrounding neighborhood. The preliminary plat shows all requirements such as the legal description, existing topographic contours, property lines/dimensions, building setback lines, sanitary sewer, storm sewer locations, date/north arrow, sizes of the proposed lots and right-of-ways, utility easements, electric, sidewalk locations, street surfacing, gas, telephone, cable, existing structures, size of individual vegetation, and street names. STAFF Therefore, staff recommends that the request of the preliminary RECOMMENDATION: plat of Southland Park Third Addition to be approved for the following reasons: 1. The proposed use would appear to have a positive impact on the area by brining additional housing on vacant land within a residential area. 2. The proposed use has a drainage design to properly direct stormwater from the development, though the platting process. 3. The proposed use would not appear to have a negative impact on the area and be compatible to existing development in the area, with lots comparable in size to the surrounding development. 4. The proposed development is within the density requirements as set forth in the Zoning Ordinance for this particular zoning district. 5. The proposed use would not appear to have a negative impact on traffic and pedestrian conditions in the area, as the lots sit upon previously built local roads. Southland Park Third Addition - Preliminary Plat Pgd> 122 of 405 City of Waterloo Planning, Programming and Zoning Commission November 1, 2016 Adjacent to 295o Southland Drive Preliminary Plat - Southland Park 5th Addition Midwest Development Company Page 123 of 405 N ' ;; E S „����� / �1p■��,r=� i►�T1�� �`�rerioo 150 75 0 150 `°) (Feet Southland Park Fifth Addition A Re -Plat of Lots C-1, C-2, and C-3 in Southland Park Third Addition `Preliminary Plat February 2017 Legal Description: Lots C-1, C-2, and C-3, Southland Park Third Addition to the City of Waterloo, Black Hawk County, Iowa — — E. Clapsaddle-Garber Associates Inc 16 East Main Street Marshalltown, Iowa 50158 Ph 641-]52-6]01 www. ogaoonsultant s. nom SHOFF CONSULTING ENGINEERS, L.C. • Construction Management • • La. Development • • Insurance Claim Investigation • 11289 5106 Nordic Drive Cedar Falls, Iowa 50613-6967 Phone 1316,26 0256 Fax 266-1515 www eno �9ine rs com =e r= a„ SLOT 3 ����s, w<.ER o N.eN ELMEM f;OT2 I e l , �H9 r i=;aa�A )7`x Jl // — 50 N� T.R PARK RO ypOIIYON _�» scwra sm�rc saes (r APPRON EN j - PROSECT LOCATION Zoning: R-3, R -P (Planned Multiple Residence) Buyer (Option Sale)/Developer: Midwest Development Co. 411 1st Avenue, SE Cedar Rapids, IA 50677 Owner: Engineer: L and BB LLC Jerry Shoff, PE, PLS Brian Beckman 1814 Jefferson Street Surveyor: Waterloo, IA 50702 Aaron Mueller, PLS 11 `,‘\\ \\\J PARCEL CURVE, TABLE CURVE# LENGTH RADIUS DELTA CHORD DIRECTION CHORD LENGTH Ca _ Seo'a4m'E 15 02' Cs saa n"o3"w (12-09, 579.'2330" w 85.45 ]Rae] C11 112,1,, 45E 79 70. -,z 54714. 183,0 113a12] 147.55 155.50 545600 Proposed Setbacks: Front Yard: 25 Feet Rear Yard: 30 Feet Side Yard: 5 Feet s CTIO C 0 +-r . o CD 0 C Co 0 REVISIONS O O ^L^,, Preliminary Plat DATE B REVISION ON L MUELLER, L S IOWA REG NO 21:28' DATE DRAWN BY 2/2/2017 Aaron HECKED APPROVED ROJECT NUMBER Drawing No of 1 Page 124 of 405 Aaron Mueller, Clapsaddle-Garber Associates, Inc., 5106 Nordic Dr., Cedar Falls, IA 50613, (319) 266-0258 SURVEYOR'S CERTIFICATE SOUTHLAND PARK FIFTH ADDITION is a subdivision of the land described in Exhibit 'A' attached hereto and made a part hereof. For a more definite location and description, reference is made to a Final Plat dated February 2, 2017, attached hereto and made a part hereof. Said SOUTHLAND PARK FIFTH ADDITION is divided into Six (6) numbered lots, numbered consecutively from One (1) through Six (6), both inclusive. The number of each Lot is designated on the Final Plat by figures near the center of each Lot. Dimensions of each lot, street widths, and distances from government lines and corners are shown in feet and decimals thereof on said Final Plat. Lot areas are provided pursuant to the provisions of Section 354.6, Paragraph 3, Code of Iowa by figures near the center of each Lot. A1/2" re -bar with an yellow plastic cap embossed with "MUELLER LS 21428" will be set at each point indicated by a small circle, marked —o- on said plat by August 1, 2017. Utility and storm water drainage easements are reserved along lot lines as shown on said Final Plat, and in widths noted. I hereby certify that this Final Plat, Report and Land Description were prepared by me or under my direct personal supervision, and that I am a duly licensed Professional Land Surveyor under the laws of the State of Iowa EXECUTED in Cedar Falls, Iowa this Second day of February, 2017 o AARON L. •`x MUELLER • fi' 21428 OW I\ „e rrrHriraN`~ /At Aaron Mueller, PLS Iowa License No. 21428 License Renewal Date: December 31, 2018 Aaron Mueller, Clapsaddle-Garber Associates, Inc, 5106 Nordic Dr., Cedar Falls, IA 50613, (319) 266-0258 Page 125 of 405 Exhibit "A" LEGAL DESCRIPTION LOTS C-1, C-2, AND C-3, SOUTHLAND PARK THIRD ADDITION TO THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. SOUTHLAND PARK FIFTH ADDITION CONTAINS 3.38 ACRES. BASIS OF BEARING IS BASED ON THE NORTH LINE OF LOT C-2 BEARING NORTH 89°43'45" EAST. Page 126 of 405 CITY OF WATERLOO, IOWA WATERLOO ENGINEERING DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4312 Fax (319) 291-4262 City Engineer • email: city.engineer@waterloo-ia.org February 8, 2017 9131 9641 Aric Schroeder, City Planner Planning, Programming & Zoning Commission Waterloo City Hall Waterloo, IA 50703 RE: PRELIMINARY PLAT SOUTHLAND PARK FIFTH ADDITION Dear Aric: This preliminary plat has been reviewed, and it has been determined that it meets the requirements of the applicable portions of Section 3, 4 and 5 of Ordinance 2997, Subdivision Ordinance. It is recommended that this preliminary plat be approved. Sincerel , j/ice_. ��.� Mr17 Dennis J. Gentz, P.E. Assistant City Engineer CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 127 of 405 City of Waterloo Planning, Programming and Zoning Commission November 1, 2016 N Adjacent to 295o Southland Drive Final Plat - Southland Park 5th Addition Midwest Development Company Page 128 of 405 �' ;; E s /fir -71i1\ //Arm, r,k i►itAT1�� 104_,V1 150 75 0 ,5° ` 1, --oo `off (Feet N N ,% N N \R, LR N N SOUTHLAND PARK FIFTH ADDITION LEGEND A RE -PLAT OF LOTS C-1, C-2, AND C-3 IN SOUTHLAND PARK THIRD ADDITION FINAL PLAT Waterloo, Iowa . FOUND ge,Ia eMILR February 2017 • memo GRA/ n REBAR w,NOOT CAP ImxlEa mrmmwff No, SET v REC. w/rcumw Pusmc ow Ma Con 0.26,1" . as7.291 RECORDED BEARING 8 o,=T .CE FROM PIAT of cAvE. (ne, 2m,a-mmoml,2m tN C26,51 w 2653.391 REEoRDEo BEARING a DISTANCE FROM SOUTHLAND PARK THIRD AWIMON J�s9� Sp ¢9 fm eMvao�w zaR.oa] Ix aB.2.6 F paw) CGA Clapsaddle-Garber Associates, Inc 16 East Main Street Marshalltown, Iowa 50158 Pb 611-152-6101 www.cgaconsatents.com SHOFF CONSULTING ENGINEERS, L C. Electrical • • Land Development • • Insurance Claim Investigation • 5106 Nordrc Dave 506136967 Ne (319)266me0 Far (319)2661515 NOTES oAND BB LLC. BRIAN ma MAN 2. 01/6R InPnni2 SAI EVOF3VTLOPR: 3HfF6 ENGINEERS. LC 51.5 NORDIC DRIVE acH ys814z5E 111/1U1jrAi THE g6 g6VA ER4`LOPS, BET. TMµ ; IN 5.000 7 9A, OF BFARIN, e 5 E. R (SEEC0111O1 DEDCA0ON) B lt1T AREA, uE.-sWn. 'MP, PLANNED MUL,LE RESIDENCE REAR YARD = 30 FT. SIDE YARD = 5 LAND DESCRIPTION WATERLOO. BLACK HAM COUNTY. IOWA. LA0claC-1, C-2, AND C-3 CONTAINS 3.38 Y O PARCEL CURVE TABLE LENGTH 31 95 LUDO. 323 SC DELTA CHORD DRECTION CHORD LENGTH 52 17 31 02 183 90' 80 25. 103 CO 10112142. 34 37 16 39. 183 00. 16 3,4 CC 183 SO. 183 90. 15.1500. 40 60. 15 03. 183 SW 15 OP CO 21,030. )R -C9) 03 95. 225 35' 8,23301 VI, 03. 1R -C9] 106 1T 195 36 133.00 93 59 APID 1 PO 94 75 103.00 79 72 BO 36. 103 90. 25101451 79 701 176 26. 64136121 IRS 10. OR -C121 142.58 152.08 O TO aU- Y I- Co C CO '0 71.4 V ) DATE Waterloo, Iowa REVISIONS BY To I - To U - REVISION DRAWN BY DNP A<,RaN"L. MUELLER, L. Fcb. W/y C DIIIII OWA REG. NO. 21628 A CHECKED PROJECT NUMBER: Drawing No 1 of 1 Page 129 of 405 Aaron Mueller, Clapsaddle-Garber Associates, Inc., 5106 Nordic Dr., Cedar Falls, IA 50613, (319) 266-0258 SURVEYOR'S CERTIFICATE SOUTHLAND PARK FIFTH ADDITION is a subdivision of the land described in Exhibit 'A' attached hereto and made a part hereof. For a more definite location and description, reference is made to a Final Plat dated February 2, 2017, attached hereto and made a part hereof. Said SOUTHLAND PARK FIFTH ADDITION is divided into Six (6) numbered lots, numbered consecutively from One (1) through Six (6), both inclusive. The number of each Lot is designated on the Final Plat by figures near the center of each Lot. Dimensions of each lot, street widths, and distances from government lines and corners are shown in feet and decimals thereof on said Final Plat. Lot areas are provided pursuant to the provisions of Section 354.6, Paragraph 3, Code of Iowa by figures near the center of each Lot. A1/2" re -bar with an yellow plastic cap embossed with "MUELLER LS 21428" will be set at each point indicated by a small circle, marked —o- on said plat by August 1, 2017. Utility and storm water drainage easements are reserved along lot lines as shown on said Final Plat, and in widths noted. I hereby certify that this Final Plat, Report and Land Description were prepared by me or under my direct personal supervision, and that I am a duly licensed Professional Land Surveyor under the laws of the State of Iowa EXECUTED in Cedar Falls, Iowa this Second day of February, 2017 o AARON L. •`x MUELLER • fi' 21428 OW I\ „e rrrHriraN`~ /At Aaron Mueller, PLS Iowa License No. 21428 License Renewal Date: December 31, 2018 Aaron Mueller, Clapsaddle-Garber Associates, Inc, 5106 Nordic Dr., Cedar Falls, IA 50613, (319) 266-0258 Page 130 of 405 Exhibit "A" LEGAL DESCRIPTION LOTS C-1, C-2, AND C-3, SOUTHLAND PARK THIRD ADDITION TO THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. SOUTHLAND PARK FIFTH ADDITION CONTAINS 3.38 ACRES. BASIS OF BEARING IS BASED ON THE NORTH LINE OF LOT C-2 BEARING NORTH 89°43'45" EAST. Page 131 of 405 Prepared by: Richard R. Morris, 620 Lafayette St, Ste. 300, PO Box 178, Waterloo, IA 5070,1 (319) 1766 DEED OF DEDICATION OF SOUTHLAND PARK FIFTH ADDITION A REPLAT OF LOTS C-1, C-2 AND C-3 IN SOUTHLAND PARK THIRD ADDITION, WATERLOO, BLACK HAWK COUNTY, IOWA KNOW ALL MEN BY THESE PRESENTS: That Midwest Development Co., an Iowa corporation, with its principal office in Cedar Rapids, Iowa, being desirous of setting out and platting into lots and streets the land described in the attached Certificate of Survey by Aaron Mueller, a licensed land surveyor, dated the 2nd day of February, 2017, do by these presents designate and set apart the aforesaid premises as a subdivision of the City of Waterloo, Iowa, the same to be known as: SOUTHLAND PARK FIFTH ADDITION WATERLOO, BLACK HAWK COUNTY, IOWA, all of which is with the free consent and the desire of the undersigned and the undersigned do hereby designate and set apart for public use the streets and avenues as shown upon the attached plat. EASEMENTS The undersigned do hereby grant and convey to the City of Waterloo, its successors and assigns, and to any private corporation, firm or person furnishing utilities for the transmission and/or distribution of water, sanitary sewer, storm sewer, drain tile, surface drainage, gas, electricity, communication service or cable television, perpetual easements for the erection, laying, building, and maintenance of said services over, across, on and/or under the property as shown on the attached plat. RESTRICTIONS Be it also known that the undersigned do hereby covenant and agree for themselves and their successors and assigns that each and all of the residential lots in said subdivision be and the same are hereby made subject to the following restrictions upon their use and occupancy as fully and effectively to all intents and purposes as if the same were contained and set forth in each deed of conveyance or mortgage that the undersigned or their successors in interest may hereinafter make for any of said lots and Page 132 of 405 that such restrictions shall run with the land and with each individual lot thereof for the length of time and in all particulars hereinafter stated, to -wit: 1. Any dwelling that shall be erected on any lot shall have a minimum setback from the front of the lot line of 25 feet as indicated on the plat. 2. Although lots in said Addition may be split or divided in any fashion to provide for more lot area when added to an adjoining lot, no dwelling shall be built or maintained on any partial lot unless said partial lot is combined with an adjoining lot or partial lot so that the resulting lot has no less frontage than the smallest lot as indicated on the plat. 3. No buildings or structure not attached to the original structure shall be constructed upon any lot or combination of lots in this subdivision, with the exception of a gazebo which has been approved in accordance with Paragraph 20 hereof. Sheds may be permitted but only if size, design, and materials are approved in writing by the developer. 4. No trailer, basement, tent, shack, garage or barn erected in said Addition shall at any time be used as a residence, temporarily or permanently, nor shall any residence of a temporary character be permitted on any lot in said Addition. 5. Midwest Development Co. shall construct only one family dwellings on the lots in this subdivision. 6. No single family dwelling shall be constructed, permitted or occupied on any lot herein having square footage floor space, designed, intended and constructed for living quarters, which space shall not include cellars, attics, garages, breezeways, porches, stoops, and other such non -living areas, of less than the following requirements: A. 1,100 square feet for single story houses. B. Any split level house, one and one-half story house, or house of two stories must have total minimum square footage of at least 1,300 square feet. 7. Each single family residence shall have a minimum of a two -car attached garage with a minimum of 400 square feet. 8. The owner of each lot, vacant or improved, shall keep his lot or lots free of weeds and debris. Further, the owner and/or occupant of each lot shall jointly and severally be responsible to keep in good order or to maintain the area between the curbline and the property line abutting his property including keeping said area free of holes, pitfalls, stumps of trees, fences, brick, stone, cement or other monument -type mail boxes, stakes, post or rods to which a metal, plastic or similar receptacle designed to hold newspapers are affixed, retaining walls, landscaping brick, block, stone, timber or other similar material, or any other similar obstructions. 9. No obnoxious or offensive trade or activity shall be carried on upon any lot nor shall anything be done thereon which may be or become an annoyance or nuisance to the neighborhood. 10. All approaches and driveways in said Addition shall be paved with concrete. 2 Page 133 of 405 11. No dwelling on any lot in said Addition shall be occupied until it meets City of Waterloo requirements for occupancy. 12. No old or used buildings shall be moved upon any of the lots in said Addition for any purpose. 13. All electrical distribution lines and service entrances, all telephone lines and services therefor, all cable TV/fiber optic cable and service therefor, and all other utilities of whatever kind or nature shall be installed underground on all lots in said Addition. 14. No dog compound, enclosure, shelter, storage outbuilding, playhouse, or wood pile for firewood shall be constructed, used or maintained within ten feet of any lot line nor shall they exceed eight feet in height on any of said lots. All outbuilding exteriors shall be approved by the developer in writing prior to start of construction. 15. A perpetual easement is reserved along the lot lines of said lots as shown by the recorded plat for storm water drainage and utility installation and maintenance. There shall be no fences, buildings, large plantings or other obstructions upon or under the property covered by these easements, so that access is available for any equipment and/or persons necessary for the construction, reconstruction or maintenance of said utilities and/or drainage ways. 16. No radio station or short-wave operators of any kind shall operate from any lot which shall cause interference with audio or visual reception upon any other lot. Antennas are permitted if attached to the structure and do not extend more than eight feet above the peak of the home. All other antennas, satellite TV dishes in excess of 24 inches in diameter, poles for radios, and windmills are prohibited. 17. No motor home or recreational vehicle, trailer of any kind, whether camping, boat, house, utility or otherwise, shall be parked or kept for more than a 48 hour period on any street, driveway or on the lot in said Addition. Any such vehicle must be stored inside the garage. 18. No bus, semi -tractor, trailer or truck of any kind, except what is commonly described as a "pickup truck", shall be kept or parked on any lot or street in said Addition; provided, however, that this prohibition shall not apply to such vehicles driven in said Addition in pursuit of and in conducting their usual business. 19. No shrubs or trees shall be planted so as to infringe upon adjoining property lines based on maximum expected growth and shall be maintained so as not to infringe. 20. Each person or entity who is a record owner of a fee or undivided fee interest in any lot shall be a member of the Association to be known as The Southland Park Fifth Addition Neighborhood Association. This shall not be construed to include persons or entities who hold an interest merely as security for the performance of an obligation. There shall be one vote per lot and each lot owner shall be a member of the Neighborhood Association. Membership shall be appurtenant to and may not be separated from ownership of any lot; ownership of such lot shall be the sole qualification of membership. 3 Page 134 of 405 The purpose of The Southland Park Fifth Addition Neighborhood Association shall be to maintain the shared sewer and other service lines of the subdivision as needed. In the event of any work done to repair a specific sewer and/or service line on any lot, said Association will pay for that expense. In the event there would be any damage done to a specific lot due to any work completed by an individual owner, then the individual owner would be responsible for said expense. The Association would be responsible for any maintenance costs for sanitary sewer service line blockage which will be paid for by the Association out of the dues assessed to all of the owners in the subdivision. The Association would also be responsible for the expense associated with the shared detention areas across the rear of the subdivision with an outlet. Each property owner will be responsible for their portion of the perpetual easement on their property, with the owners of all lots being responsible for the outlet contained on Lot No. 2. The Association's responsibility for these maintenance issues shall begin when the developer, Midwest Development Co. notifies the Neighborhood Association that they are turning over the responsibility of these matters to the Neighborhood Association. The provisions contained in this paragraph of paragraph 20 shall be perpetual and not be governed by the provisions of paragraph 23 of this Deed of Dedication. The annual dues for the Association shall initially be set at $250.00 per lot per year beginning January 1, 2018. The Association shall have the ability and authority to adjust annual dues as it deems appropriate to carry out the maintenance duties described above. The developer, Midwest Development Co. shall have no responsibility for annual association dues. 21. No building or structure shall be erected or placed on any lot in this subdivision until the building plans, and plot plan, showing all buildings, fences, patios, and pools, and showing the location thereof, and side yard distances, rear yard distances, front yard distances, driveways, and walkways, and type of construction have been approved in writing as to conformity and harmony of external design and quality workmanship and materials with existing structures in the subdivision by Midwest Development Co. 22. All of the provisions hereof shall be enforceable by appropriate legal proceedings by any present or future owner of the legal or equitable title to any lot in said subdivision. Invalidation of any one or more of the within restrictions by judgment or decree of court shall not be regarded as affecting the validity of any of the other provisions hereof, nor shall any judicial determination with respect to any of the restrictive provisions hereof be regarded as affecting the validity or sufficiency of this instrument as a deed of dedication of said plat, all of which such other provisions shall remain in full force and effect. 23. The undersigned and all persons and corporations hereafter requiring any right, title or interest in any of the lots in said subdivision shall be taken and held to have agreed and covenanted with the owners of all other lots in this subdivision and with the respective successors and assigns of all of the rest of such other lots to conform to and observe all of the foregoing covenants, restrictions and stipulations as to the construction of building thereon for a period of twenty-one (21) years from the date of filing of said plat and this deed of dedication for record. Within the period of twenty-one (21) years and in accordance with Iowa Code Chapter 614.24 and 614.25 (2015 Code of Iowa) or their successor provisions, these covenants, restrictions and stipulations shall be automatically extended for an additional period of twenty-one (21) years upon compliance with Chapter 614.24 and Chapter 614.25 of the 2015 Code of Iowa. In the event an extension of the covenants, restrictions and stipulations is not filed within 4 Page 135 of 405 the period of twenty-one (21) years or successive 21 -year period, then the covenants, restrictions and stipulations contained herein shall terminate at the end of the existing period of twenty-one (21) years. 24. If the parties hereto or any of them or their heirs or assigns shall violate or attempt to violate any of the covenants or restrictions herein, it shall be lawful for any other person or persons owning property in said Addition to prosecute any proceedings at law or in equity against the person or persons violating or attempting to violate any such covenants or restrictions and for the purpose of preventing such acts or to recover damages for such violation, or both, and for costs and reasonable attorney's fees as determined by the Court and not the statute. 25. No animals, livestock, or poultry of any kind shall be raised, bred or kept on any lot, except that two dogs or cats maximum, or other household pets are allowed and then only if they are not kept, bred or maintained for any commercial purposes. Such animals shall be kept under control so as not to constitute a public nuisance and must be kept in compliance with applicable zoning laws and regulations of the City of Waterloo, Black Hawk County, Iowa. 26. Upon the sale of a lot, owner shall take responsibility for any erosion control issues, certifications and/or requirements of the Iowa Department of Natural Resources. 27. All buildings erected on any lot in said Addition shall be constructed in accordance with the Building, Plumbing and Electrical Codes of the City of Waterloo, Iowa. 28. The developer, Midwest Development Co. agrees: A. That sanitary sewer, together with the necessary manholes and sewer service lines to all lots in the plat, will be provided. B. That underground utilities, as required by the Subdivision Ordinance of the City of Waterloo, Iowa, shall be installed. C. That the city water will be provided to all lots as required by the City of Waterloo, Iowa Water Works. D. That municipal fire hydrants will be provided as required by the Waterloo Public Safety Department. E. That handicap ramps will be provided as required by law and as required by the City of Waterloo, Iowa details and specifications. F. A Portland cement concrete sidewalk and a hard surfaced driveway approach shall be installed during or immediately after the construction of a residential dwelling on a lot in the subdivision, but before issuance of an Occupancy Permit from the City of Waterloo, Iowa, or only sidewalk construction within five (5) years of the transfer of said lot from the developer to a purchaser, whichever is earlier. Said sidewalk shall be constructed across the full length of all street frontages of the lot, and extend to match the end of existing sidewalk(s) on adjoining lots where sidewalk exists. Said sidewalk shall also be required to be constructed across all street frontages of two (2) or more adjoining lots, or 5 Page 136 of 405 portions thereof, when any owner has acquired said two (2) or more adjoining lots, or portions thereof, upon construction upon one (1) or more lots, or portions thereof, all as required by the City of Waterloo, Iowa. Construction of handicap access ramps at the intersections shall be the responsibility of the developer or adjacent property owner. In the event that the City is required to construct the sidewalk as permitted by subparagraph (H), a lien or liens may only be imposed against the lot or lots which require city construction and no others in the subdivision. G. That the work improvements called for herein shall be in accordance with the specifications of the City of Waterloo, Iowa, and performed under the supervision of the City Engineer. In the event that the developer, Midwest Development Co., its grantees and assigns fail to complete the work and improvements called for herein within one (1) year from the date of the acceptance of said final plat by each developer by the City of Waterloo, Iowa, the City may then make the improvements and assess the costs of the same to the lots owned and platted by the developer. The undersigned, for themselves, their successors, grantees and assigns, waive all statutory requirements of notice of time and place of hearing and agree that the City may install said improvements and assess the total costs thereof against the respective lots. H. That the City may perform said work, levy the cost thereof as assessments, and the undersigned agree that said assessments so levied shall be a lien on the respective lots with the same force and effect as though all legal provisions pertaining to the levy of such special assessments have been observed, and further authorize the City Clerk to certify such assessments to the County Auditor as assessments to be paid in installments as provided by law. 29. The developer, Midwest Development Co., states: A. That this plat and development shall comply with the R -P, R-3 Residential Zoning District Classification Regulations. 30. Notwithstanding anything contained in the Deed of Dedication to the contrary, any assessment made under the Deed of Dedication shall not be a lien against any property described herein unless and until the City of Waterloo records with the Black Hawk County Recorder a "Notice of Assessment Lien" which notice shall describe the property against which the lien attaches in the amount of said lien. 31. All subsequent owners of lots in the subdivision shall be obligated to meet any requirements imposed by the Commissioners of the Black Hawk County Conservation District or any other governmental agency, by the authority of Chapter 161A, Code of Iowa, pertaining to soil erosion control plans for certain land distributing activities. This covenant shall be perpetual and not be governed by the provisions of Paragraph 23 of this Deed of Dedication. 6 Page 137 of 405 SIGNED and DATED this MIDWEST DEVELOPMENT CO. By day of ft , 2017. Kevin ' ittro. Vice President STATE OF IOWA COUNTY OF BLACK HAWK ) ) ss. This instrument was acknowledged before me on Fittro as Vice President of Midwest Development Co. , 2017, by Kevin Notary Public in and for the State of Iowa rfI • DEBORA A KESTER COMMISSION NO.792662 MY co flES 7 Page 138 of 405 CITY OF WATERLOO, IOWA WATERLOO ENGINEERING DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4312 Fax (319) 291-4262 City Engineer • email: city.engincer@waterloo-ia.org February 15, 2017 9131 9641 Aric Schroeder, City Planner Planning, Programming & Zoning Commission Waterloo City Hall Waterloo, IA 50703 RE: FINAL PLAT SOUTHLAND PARK FIFTH ADDITION Dear Aric: This final plat has been reviewed, and it has been determined that it meets the requirements of the applicable portions of Section 3, 4 and 5 of Ordinance 2997, Subdivision Ordinance. It is recommended that this final plat be approved. Sincerel top,p 'Dennis J. Gentz, P.E. Assistant City Engineer CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 139 of 405 CITY OF WATERLOO Council Communication Resolution supporting the application by Park Avenue Lofts, LLC, for the Iowa Workforce Housing Tax Incentives Program, to construct twenty-seven (27) residential units in Waterloo, located at 325 East Park Avenue. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Reviewer Action Date Planning & Zoning Schroeder, Aric Approved 2/15/2017 - 10:45 AM Clerk Office Even, LeAnn Approved 2/15/2017 - 2:31 PM ATTACHMENTS: Description Type D Map Backup Material Resolution supporting the application by Park Avenue Lofts, LLC, for the SUBJECT: Iowa Workforce Housing Tax Incentives Program, to construct twenty- seven (27) residential units in Waterloo, located at 325 East Park Avenue. Submitted by: Submitted By: Noel Anderson, Community Planning & Development Director Recommended Action: Approval of a Resolution supporting the application by Park Avenue Lofts, LLC for the Iowa Workforce Housing Tax Incentives Program. The Iowa Workforce Housing Tax Incentives Program is a new tax credit Summary Statement: program that is effective January 28, 2015. The program is similar to the Enterprise Zone program that was dissolved by the State of Iowa on June 30, 2014. Expenditure Required: N/A Source of Funds: N/A Policy Issue: Economic Development Alternative: N/A The requirements for the Iowa Workforce Housing Incentives Program includes: Projects must meet one of four criteria: • Located on a grayfield or brownfield site . Repair or rehabilitation of dilapidated housing stock • Upper story project • New construction in a community with demonstrated workforce Page 140 of 405 Background Information: housing needs • The developer must build or rehabilitate at least four single-family homes or at least one multi -family building containing three or more units or at least two upper story units. • Total project costs may not exceed $200,000 per unit for new construction or $250,000 per unit for historic rehabilitation. • Total program benefits are limited to a maximum of $1 million per recipient. • The housing project must be completed within three years of award. • IEDA must approve the developer's application for Workforce Housing Tax Credit prior to project initiation. Along with the requirements listed above the developer must have documentation of local matching funds pledges for the housing project in an amount equal to at least $1,000 per dwelling unit. These funds will be matched through a development agreement that was approved by City Council on June 8, 2015 with the incentive package for 10 years at 70% per year for any taxable value over the January 1, 2015 value of $614,210. The applicant did receive a resolution of support for 25 units in October of 2016 but the scope of the project has since been adjusted to 27 units, therefore they are asking for another resolution of support for the updated number of units. Lots 1 and 4 , Block 30, Original Plat on the East side of the Cedar River, in the City of Waterloo, Black Hawk County, Iowa Legal Descriptions: Also Southeasterly 8 feet of Lots 2 and 3 , Block 30, Original Plat, on the East Side of the Cedar River, in the City of Waterloo, Black Hawk County, Iowa. Page 141 of 405 ��s'•'�' . Note Base map tlab souse is Black Nawk County. TMs map does not rep esenta survey, no Ilab lll y assumed tortbe actuary of the tlab dellneatetl herein. either exp essetl or Impli ed by Black Hawk County, the Black Hawk County Assessor, oriheir employees. The C of Wae oo makes no wan ant y, express of Implied a bbe accuary otthe into mabon shown n this map, a. expressly tllsc alms liability forihe o uarymeeot. uses showtl ere boffclal alai NawkC ecobetl sso s eb e o c mpee elaek Nawk chum Asses nrs on�n a �enmplee ntlaeenateln`°'mallon N W E 4,100%° CitLj of Waterloo Iowa 7 100 50 0 100 Feet Paae 142 of 403 CITY OF WATERLOO Council Communication Resolution amending the Real Estate Purchase Agreement with Locus Partnership, approved on October 10, 2016, regarding timeline for vacating the property from February 10, 2017 to March 31, 2017, and authorize the Mayor and City Clerk to sign and fully execute all necessary documents. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Reviewer Action Date Planning & Zoning Schroeder, Aric Approved 2/15/2017 - 10:33 AM Clerk Office Even, LeAnn Approved 2/15/2017 - 1:49 PM SUBJECT: Submitted by: Resolution amending the Real Estate Purchase Agreement with Locus Partnership, approved on October 10, 2016, regarding timeline for vacating the property from February 10, 2017 to March 31, 2017, and authorize the Mayor and City Clerk to execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director Recommended Action: Approve the Resolution Mr. Dick Jacobi has sold the site at 220 Commercial Street to the City of Waterloo for expanded Downtown Waterloo parking and redevelopment efforts. Mr. Jacobi previously had sold a rear portion of parking years back for the Sportsplex project, so he has been very good to work with for the City of Waterloo projects. Summary Statement: Mr. Jacobi's agreement for the recent sale allowed him time (February 10th) to get all equipment and salvage items out of the building after the sale. He has had some personal family health problems and has asked for an extension. City intentions are to demolish the building, ad we may begin asbestos testing while he is still in there building, so the extension should not impact any City timelines for demolition significantly. Expenditure Required: NA Source of Funds: NA Policy Issue: Downtown Redevelopment Alternative: NA Background Information: See summary Legal Descriptions: NA Page 143 of 405 CITY OF WATERLOO Council Communication Resolution approving an additional $7,500 in funds from the City of Waterloo for local match to $600,000 in federal STP funds for the Northeast Industrial Access Study, and authorize Mayor and City Clerk to sign and fully execute all necessary documents. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Planning & Zoning Clerk Office SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Alternative: Reviewer Schroeder, Aric Even, LeAnn Action Approved Approved Date 2/15/2017 - 10:38 AM 2/15/2017 - 1:58 PM Resolution approving an additional $7,500 in funds from the City of Waterloo for local match to $600,000 in federal STP funds for the Northeast Industrial Access Study, and authorize Mayor and City Clerk to execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director Approve resolution The City has previously partnered with INRCOG, Elk Run Heights, Evansdale, Back Hawk County, and Raymond, to provide local match for $600,000 in federal STP funds for a Northeast Industrial Access corridor study. This study wil evaluate and make recommendations for truck and traffic movements in this area of the county and city. The City of Waterloo had previously approved providing $45,000 in local match. That amount is being raised to a total of $52,500 due to funding shortfalls in the original amounts from the smaller cities. The City of Waterloo still believes this local match to be financially sound for the amount of work being accomplished with this study. $7,500 Bond funds Economic Development and Transportation NA On Noveber 10, 2014 the Waterloo City Council previously approved $45,000 in matching funds for this project. We are requesting an additional $7,500. The bond funds are already in place from the 2014 bond sale. Page 144 of 405 Background Information: The Northeast Industrial Access Study will look at more efficient truck routes and access to the Northeast Industrial area of Waterloo. We believe this will aide in congestion relief, economic development efforts, and potentially helping for better land use in the smaller communities along the route. Page 145 of 405 CITY OF WATERLOO Council Communication Resolution approving Development Agreement between City of Waterloo and BCS Properties, LLC for the construction of a $2 million commercial building, tied to the overall development of 10 acres of land, with 15 years at 95% tax rebates, generally located northeast of the intersection of East Ridgeway Avenue and Highway 63, and authorize the Mayor and City Clerk to sign and fully execute all necessary documents. City Council Meeting: 2/20/2017 Prepared: 2/16/2017 REVIEWERS: Department Planning & Zoning Clerk Office Reviewer Schroeder, Aric Felchle, Kelley ATTACHMENTS: Description D BCS Brownfield -Development Agreement SUBJECT: Submitted by: Recommended Action: Summary Statement: Action Approved Approved Type Cover Memo Date 2/17/2017 - 10:16 AM 2/17/2017 - 12:43 PM Resolution approving Development Agreement between City of Waterloo and BCS Properties, LLC for the construction of a $2 million commercial building, tied to the overall development of 10 acres of land, with 15 years at 95% tax rebates, generally located northeast of the intersection of East Ridgeway Avenue and Highway 63, and authorize the Mayor and City Clerk to sign and fully execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director Approve the resolution This site is generally located northeast of the intersection of East Ridgeway Avenue and Highway 63. The site soil testing probes have shown irregular amounts of concrete and other materials throughout the site. Previous developers have dropped the site for difficulty of building upon it due to the problematic soil conditions as well as problems for construction due to unstable and unknown objects buried underground. It is truly a brownfield site, even as a vacant site. City records and Courier articles show that the site was previously a dump site in the 1970s and 1980s. The City first acted to create ordinances regulating rubble fill and dumping of garbage in part as a reaction to the past use of this site. The tax rebate schedule is figured in at 15 years at 95% to account for the extra costs of dirt movements, unknown cleanup activities, and excavation amounts that will be needed for the site. Our consultants estimate that amount at $800,000 to $1.2 million potentially. The developer will also be Page 146 of 405 responsible for all infrastructure to be built into the site. Expenditure Required: NA Source of Funds: NA Policy Issue: Economic Development & Brownfield Development Alternative: Background Information: Not financial assistance to develop the site and have it continue to remain vacant, paying $5,778 in taxes per year. Even with the tax rebate schedule, the first project would pay over $35,000 to the debt service and TIF in first year of taxes due. The site was a dump site in the 1970s -1980s. The site was recently looked at by Dr. Sundaram for site plan and rezoning action to create a medical park expansion in this area. Upon soil testing, Dr. Sundaram relocated his project further west in Greenbelt Centre. Staff has been working with BCS to estimate added costs of the unknown features of this site. BCS has had excavators on the site to randomly and strategically look for soil anomalies, and many exist. Legal Descriptions: See attachment Page 147 of 405 Prepared by Christopher S. Wendland, P.O. Box 596, Waterloo, IA 50704 Phone (319) 234-5701 DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of , 2016 by and between BCS Properties, L.L.C. (the "Company") and the City of Waterloo, Iowa (the "City"). RECITALS A. City considers economic development within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. B. Company is willing and able to undertake, or to cause to be undertaken, the financing and construction of a building and related improvements on property legally described on Exhibit "A" (the "Property"), located in the Martin Road Development Plan Area of the City. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Purchase of Property. Company is purchasing the real property described on Exhibit "A" attached hereto (the "Property"), consisting of assessor parcel no. 8913-33-376-012. Company shall take all steps necessary or advisable to complete the purchase of the Property and to obtain marketable title thereto as promptly as possible. 2. Improvements. Company shall construct a new commercial building, and related parking and landscaping (collectively, the "Improvements"), all of which shall be located on the Property. The Improvements shall be constructed in accordance with all applicable City, state, and federal building codes and shall comply with all applicable City ordinances and other applicable law. It is contemplated that the Improvements will have a total project cost exceeding $2,000,000. The Property, the Improvements, and all site preparation and development -related work to make the Property usable for Page 148 of 405 Company's purposes as contemplated by this Agreement are collectively referred to as the "Project". 3. Timeliness of Construction. The parties agree that Company's commitment to cause the Project to be undertaken and the Improvements to be constructed in a timely manner constitutes a material inducement for the City to extend the development incentives provided for in this Agreement, and that without said commitment City would not have done so. Company must begin construction of Improvements on the Property within four (4) months after the date of this Agreement, and construction of Improvements must be completed by October 31, 2018 (the "Project Completion Date"). If development has commenced but is stopped and/or delayed as a result of an act of God, war, civil disturbance, court order, labor dispute, fire, or other cause beyond the reasonable control of Company or the developer, the requirement that construction is to be completed by the Project Completion Date shall be tolled for a period of time equal to the period of such stoppage or delay, and thereafter if construction is not completed within the allowed period of extension the City may terminate this Agreement following the failure of Company or the developer to diligently undertake construction within thirty (30) days following written notice of default from City to Company. If at any time Company or the developer fails to diligently undertake construction and other activities necessary for completion of the Project, then City may term in -+ate this Agreement following the failure of Company or developer to resume and diligently carry on construction within thirty (30) days following written notice of default from City to Company. 4. Water and Sewer. Company or the developer will be responsible for extending water and sewer service to any location on the Property and for payment of any associated connection fees. 5. Minimum Assessment Agreement. Company acknowledges and agrees that it, or any successor in title to the Property, will pay when due all taxes and assessments, general or special, and all other lawful charges whatsoever levied upon or assessed or placed against the Property. For itself and each of its successors in title to the Property, Company further agrees that, prior to the date set forth in Section 2 of Exhibit "B", neither it nor any successor in title will seek or cause a reduction in the taxable valuation for the Property, which shall be fixed for assessment purposes, below the amount of $2,000,000.00 (the "Minimum Actual Value"), through: (i) willful destruction of the Property, Improvements, or any part of either; (ii) a request to the assessor of Black Hawk County; or (iii) any proceedings, whether administrative, legal, or equitable, with any administrative body or court within the City, Black Hawk County, the State of Iowa, or the federal government. 2 Page 149 of 405 Company agrees to sign the agreement attached as Exhibit "B" concurrently with execution of this Agreement. 6. Tax Rebates. Provided that the Improvements have been completed as set forth herein, and provided that Company has executed the Minimum Assessment Agreement as set forth in Section 5, City agrees to rebate property tax (with the exceptions noted below) for a period of fifteen (15) years at 95% per year for any taxable value over the January 1, 2016 value of $157,410 for the Property, which taxable value is anticipated to be $2,000,000 for both land and buildings. Rebates are payable in respect of a given year only to the extent that general property taxes due and owing for the Property for such year have actually been paid. To receive rebates for a given year, Company must, within twelve (12) months after the tax payment due date, submit a completed rebate request to City on the form provided by or otherwise satisfactory to City, or the rebate will be forfeited at City's option. The first year in which a rebate may be given ("Year One") shall be the first full year for which the assessment is based on the completed value of the Improvements and not a prior year for which the assessment is based solely on the value of the land or on the value of the land and a partial value of the Improvements, due to partial completion of the Improvements or a partial tax year. The assessed value of the Property as a result of the Improvements must be increased by a minimum of 10% and must increase the annual tax by a minimum of $500.00. This rebate program is not applicable to any special assessment levy, debt service levy, or any other levy that is exempted from treatment as tax increment financing under the provisions of applicable law. 7. Obligations Contingent. Each and every obligation of City under this Agreement is expressly made subject to and contingent upon City's completion of all procedures, hearings and approvals deemed necessary by City or its legal counsel for amendment of the urban renewal plan applicable to the Property and/or project area, all of which must be completed within 180 days from the date this Agreement is approved by the City council. If such completion does not occur, then this Agreement shall be deemed canceled and shall be null and void. 8. Representations and Warranties of City. City hereby represents and warrants as follows: A. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Each person who executes and delivers this Agreement and all documents to be delivered hereunder is and shall be authorized to do so on behalf of City. 9. Representations and Warranties of Company. Company hereby represents and warrants as follows: 3 Page 150 of 405 A. Company is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Company is duly organized, validly existing, and in good standing under the laws of the state of its organization and is duly qualified and in good standing under the laws of the State of Iowa. C. Company has full right, title, and authority to execute and perform this Agreement and to consummate all of the transactions contemplated herein, and each person who executes and delivers this Agreement and all documents to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 10. Materiality of Company's Promises, Covenants, Representations, and Warranties. Each and every promise, covenant, representation, and warranty set forth in this Agreement on the part of Company to be performed is a material term of this Agreement, and each and every such promise, covenant, representation, and warranty constitutes a material inducement for City to enter this Agreement. Company acknowledges that without such promises, covenants, representations, and warranties, City would not have entered this Agreement. Upon breach of any promise or covenant, or in the event of the incorrectness or falsity of any representation or warranty, City may, at its sole option and in addition to any other right or remedy available to it, terminate this Agreement and declare it null and void. 11. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director. (b) if to Company, at 2202 College Street, Cedar Falls, Iowa, 50613, Attention: Brent Dahlstrom. Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. A party may change the address for giving notice by any method set forth in this section. 12. No Joint Venture. Nothing in this Agreement shall, or shall be deemed or construed to, create or constitute any joint venture, partnership, agency, 4 Page 151 of 405 employment, or any other relationship between the City and Company nor to create any liability for one party with respect to the liabilities or obligations of the other party or any other person. 13. Amendment, Modification, and Waiver. No amendment, modification, or waiver of any condition, provision, or term of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or by the duly authorized representative of same, and specifying with particularity the extent and nature of the amendment, modification, or waiver. Any waiver by any party of any default by another party shall not affect or impair any rights arising from any subsequent default. 14. Severability. Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any portion of this Agreement shall be deemed invalid or unenforceable, whether in whole or in part, the offending provision or part thereof shall be deemed severed from this Agreement and the remaining provisions of this Agreement shall not be affected thereby and shall continue in full force and effect. If, for any reason, a court finds that any portion of this Agreement is invalid or unenforceable as written, but that by limiting such provision or portion thereof it would become valid and enforceable, then such provision or portion thereof shall be deemed to be written, and shall be construed and enforced, as so limited. 15. Captions. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and/or reference, and they shall in no way be construed as limiting, extending, or describing either the scope or intent of this Agreement or of any provisions hereof. 16. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 17. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. 18. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 19. Time of Essence. Time is of the essence of this Agreement. IN WITNESS WHEREOF, the parties have executed this Development Agreement by their duly authorized representatives as of the date first set forth above. 5 Page 152 of 405 CITY OF WATERLOO, IOWA BCS PROPERTIES, L.L.C. By: By: Quentin M. Hart, Mayor Brent Dahlstrom, Manager Attest: Kelley Felchle, City Clerk 6 Page 153 of 405 EXHIBIT "A" Legal Description of Property A PARCEL OF LAND IN THE SE QTR OF THE SW QTR OF SEC 33 T 89 R 13 DESC AS FOL: BEG AT THE INTERSECTION OF THE W LINE OF SAID SE SW WITH THE SELY RIGHT OF WAY LINE OF US HWY63THS89DEG 50MIN 15SEC E432.65FTTH51 DEG 40 MIN 30 SEC E 986.4 FT TO A PT ON THE N LINE OF RIDGEWAY AVE TH S 90 DEG 00 MIN W ALONG THE N LINE OF RIDGEWAY AV TO THE W LINE OF SAID SE SW TH N 0 DEG 43 MIN 15 SEC W 985.97 FT TO PT OF BEG. Page 154 of 405 EXHIBIT "B" MINIMUM ASSESSMENT AGREEMENT This Minimum Assessment Agreement (the "Agreement") is entered into as , 2016, by and among the CITY OF WATERLOO, IOWA ("City"), BCS Properties, L.L.C. ("Company"), and the COUNTY ASSESSOR of the City of Waterloo, Iowa ("Assessor"). WITNESSETH: WHEREAS, on or before the date hereof the City and Company have entered into a development agreement (the "Development Agreement") regarding certain real property, described in Exhibit "A" thereto, located in the City; and WHEREAS, it is contemplated that pursuant to the Development Agreement, the Company will undertake, or cause to be undertaken, the development of an area ("Project") within the Martin Road Development Plan area of the City; and WHEREAS, pursuant to Iowa Code § 403.6, as amended, the City and the Company desire to establish a minimum actual value for the land and the building pursuant to this Agreement and applicable only to the Project, which shall be effective upon substantial completion of the Project and from then until this Agreement is terminated pursuant to the terms herein and which is intended to reflect the minimum actual value of the land and buildings as to the Project only; and WHEREAS, the City and the Assessor have reviewed the preliminary plans and specifications for the improvements (the "Improvements") which the parties contemplate will be erected as a part of the Project. NOW, THEREFORE, the parties hereto, in consideration of the promises, covenants, and agreements made by each other, do hereby agree as follows: 1. Upon substantial completion of construction of the Improvements, the minimum actual taxable value which shall be fixed for assessment purposes for the land and Improvements to be constructed thereon as a part of the Project shall not be less than $2,000,000.00 (the "Minimum Actual Value") until termination of this Agreement. The parties agree that construction of the Improvements will be substantially completed on or before December 31, 2017. 2. The Minimum Actual Value herein established shall be of no further force and effect, and this Minimum Assessment Agreement shall terminate, on December 31, 2032. Nothing herein shall be deemed to waive Company's rights under Iowa Code § 403.6, as amended, to contest that portion of any actual value assignment made by the Assessor in excess of the Minimum Actual Value established herein. In no event, however, shall Company seek or cause the reduction of the actual value assigned below the Minimum Actual Value established herein during the term of this Agreement. Page 155 of 405 3. This Agreement shall be promptly recorded by the City with the Recorder of Black Hawk County, Iowa. The City shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, or shall be construed as, modifying the terms of the Development Agreement. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties, including but not limited to future owners of the Project property. CITY OF WATERLOO, IOWA BCS PROPERTIES, L.L.C. By: By: Quentin M. Hart, Mayor Brent Dahlstrom, Manager Attest: Kelley Felchle, City Clerk STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) On this day of , 2016, before me, a Notary Public in and for the State of Iowa, personally appeared Quentin M. Hart and Suzy Schares, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waterloo, Iowa, a municipal corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said municipal corporation, and that said instrument was signed and sealed on behalf of said municipal corporation by authority and resolution of its City Council, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipal corporation by it and by them voluntarily executed. Notary Public 2 Page 156 of 405 STATE OF IOWA ) ss. BLACK HAWK COUNTY ) Subscribed and sworn to before me on , 2016 by Brent Dahlstrom as Manager of BCS Properties, L.L.C. Notary Public 3 Page 157 of 405 CERTIFICATION OF ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed for the development, and being of the opinion that the minimum market value contained in the foregoing Minimum Assessment Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the property subject to the development, upon completion of improvements to be made on it and in accordance with the Minimum Assessment Agreement, certifies that the actual value assigned to such land, building and equipment upon completion of the development shall not be less than Two Million Dollars ($2,000,000) in the aggregate, until termination of this Minimum Assessment Agreement pursuant to the terms hereof. Assessor for Black Hawk County, Iowa Date STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) Subscribed and sworn to before me on , by T.J. Koenigsfeld, Assessor for Black Hawk County, Iowa. Notary Public Page 158 of 405 CITY OF WATERLOO Council Communication Resolution approving Development Agreement between City of Waterloo and BCS Properties, LLC for the development of land to other third party businesses and developers, by offering the land for development at low costs, for the overall development of over 10 acres of land, with 15 years at 95% tax rebates, generally located northeast of the intersection of East Ridgeway Avenue and Highway 63, and authorize the Mayor and City Clerk to execute all necessary documents. City Council Meeting: 2/20/2017 Prepared: 2/16/2017 REVIEWERS: Department Planning & Zoning Clerk Office Reviewer Schroeder, Aric Felchle, Kelley Action Approved Approved ATTACHMENTS: Description Type D BCS West Development Agreement Backup Material SUBJECT: Submitted by: Recommended Action: Summary Statement: Date 2/17/2017 - 10:54 AM 2/17/2017 - 12:48 PM Resolution approving Development Agreement between City of Waterloo and BCS Properties, LLC for the development of land to other third party businesses and developers, by offering the land for development at low costs, for the overall development of over 10 acres of land, with 15 years at 95% tax rebates, generally located northeast of the intersection of East Ridgeway Avenue and Highway 63, and authorize the Mayor and City Clerk to execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director Approve Resolution The City of Waterloo and BCS Properties LLC are partnering to develop the land behind the existing Reserves at Ridgeway by BCS developing the infrastructure, offering the land for development to other businesses, and being paid for the land through the taxes created by that development. This allows the private developer to expend funds up front for roads, infrastructure, utilities, and land grading and development for the project area, and save the City from bonding for such expenses. The 15 years at 95% will offset land values and infrastructure costs to develop and build out the site. The tax rebates will be awarded from 2018 to 2032 to help push for the faster development of projects and the project area. The partnership will bring two other projects immediately on this land with Fusion Dance Studio and Black Hawk Gymnastics both on the agenda as Page 159 of 405 well. Expenditure Required: NA Source of Funds: NA Policy Issue: Economic Development Alternative: Background Information: Legal Descriptions: Not partner with private developers to create more buildable lots and development areas within the community This land was previously the driving range and mini golf course. It now has a $2 million building on it (the Reserves), the Amy Weinands building going up, more buildable lots, and will soon have Black Hawk Gymnastics and Fusion going up. This entire development will create additional jobs, traffic, sales tax, etc. to this area of the community. See attachment Page 160 of 405 Prepared by Noel Anderson, 715 Mulberry Street, Waterloo, IA 50703 Phone (319) 291-4366 DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of , 2016 by and between BCS Properties, L.L.C. (the "Company") and the City of Waterloo, Iowa (the "City"). RECITALS A. City considers economic development within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. B. Company is willing and able to undertake, or to cause to be undertaken, the financing and construction of a building and related improvements on property legally described on Exhibit "A" (the "Property"), located in the Martin Road Development Plan Area of the City. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Development. Company owns the Property and intends to sell it in one or more transactions to one or more third -party developers for construction of buildings for office or commercial use, and related parking, landscape, and other improvements to the building and grounds (the "Improvements"). The Improvements shall be constructed in accordance with all applicable City, state, and federal building codes and shall comply with all applicable City ordinances and other applicable law. The Improvements and all site preparation and development -related work as contemplated by this Agreement are collectively referred to as the "Project". The parties desire by this Agreement to provide assistance to Company for its investments in assembling the Property and readying it for development by installation of new roads, public infrastructure, and other basic improvements. Page 161 of 405 2. Future Agreements. In connection with phase of development, City will enter into a development agreement and a minimum assessment agreement with the phase developer, both agreements to be in form and content acceptable to City. City may require that Company or the phase developer submit specific building designs and site plans for City review and approval as a condition to approval of a development agreement. Improvements to the Property completed within the schedule established by a third -party development agreement will be eligible for the tax -rebate benefits provided for in this Agreement or, if different, as provided for in the third -party development agreement, and any part of the Improvements not completed within the prescribed period will not be eligible for said benefits. The intent of incentive payments to Company or the developer, as applicable, is to cover the cost of land acquisition pertaining to such phase of development. 3. Water and Sewer. Company or the developer will be responsible for extending water and sewer service to any location on the Property and for payment of any associated connection fees. 4. Tax Rebates. Provided that the Improvements have been completed as set forth herein and in a third -party development agreement, and provided that Company or the phase developer has executed a Minimum Assessment Agreement as provided in Section 6 below, City agrees to rebate property tax (with the exceptions noted below) to Company for a period of fifteen (15) years at 95% per year for any taxable value over the value of the applicable Property phase area before the commencement of Improvements. Rebates are payable in respect of a given year only to the extent that general property taxes due and owing for the Property for such year have actually been paid. To receive rebates for a given year, Company must, within twelve (12) months after the tax payment due date, submit a completed rebate request to City on the form provided by or otherwise satisfactory to City, or the rebate will be forfeited at City's option. The first year in which a rebate may be given ("Year One") shall be the first full year for which the assessment is based on the completed value of the Improvements and not a prior year for which the assessment is based solely on the value of the land or on the value of the land and a partial value of the Improvements, due to partial completion of the Improvements or a partial tax year. The assessed value upon completion of the Improvements to the applicable Property phase area must be increased by a minimum of 10% and must increase the annual tax by a minimum of $500.00. This rebate program is not applicable to any special assessment levy, debt service levy, or any other levy that is exempted from treatment as tax increment financing under the provisions of applicable law. To meet the timeline allowed for the Martin Road Tax Increment Finance (TIF) District as an economic development TIF District, all eligible tax rebates for projects to be paid to Company will commence for values shown in assessment year 2018 and ending in assessment year 2032. The Company is eligible for tax rebates for project built within the Property area, above any tax rebates given for the specific project (i.e. if a $ 2 million building is given 2 Page 162 of 405 5 years at 50%, the Company would get the 45% above that 50% calculated amount eligible for rebates that first 5 years, then go to the 95% schedule per this agreement for the remaining 10 years). 5. Obligations Contingent. Each and every obligation of City under this Agreement or a third -party development agreement is expressly made subject to and contingent upon City's completion of all procedures, hearings and approvals deemed necessary by City or its legal counsel for amendment of the urban renewal plan applicable to the Property and/or project area, all of which must be completed within 180 days from the date this Agreement or, as applicable, a third -party development agreement, is approved by the City council. If such completion does not occur, then this Agreement or, as applicable, a third -party development agreement, shall be deemed canceled and shall be null and void. 6. Minimum Assessment Agreement. In connection with each third -party development agreement, Company acknowledges that the phase developer must execute a minimum assessment agreement in form and content acceptable to City. 7. Representations and Warranties of City. City hereby represents and warrants as follows: A. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Each person who executes and delivers this Agreement and all documents to be delivered hereunder is and shall be authorized to do so on behalf of City. 8. Representations and Warranties of Company. Company hereby represents and warrants as follows: A. Company is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Company is duly organized, validly existing, and in good standing under the laws of the state of its organization and is duly qualified and in good standing under the laws of the State of Iowa. C. Company has full right, title, and authority to execute and perform this Agreement and to consummate all of the transactions contemplated herein, and each person who executes and delivers this Agreement and all documents to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 9. Materiality of Company's Promises, Covenants, Representations, and Warranties. Each and every promise, covenant, representation, and warranty set 3 Page 163 of 405 forth in this Agreement on the part of Company to be performed is a material term of this Agreement, and each and every such promise, covenant, representation, and warranty constitutes a material inducement for City to enter this Agreement. Company acknowledges that without such promises, covenants, representations, and warranties, City would not have entered this Agreement. Upon breach of any promise or covenant, or in the event of the incorrectness or falsity of any representation or warranty, City may, at its sole option and in addition to any other right or remedy available to it, terminate this Agreement and declare it null and void. 10. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director. (b) if to Company, at 2202 College Street, Cedar Falls, Iowa, 50613, Attention: Brent Dahlstrom. Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. A party may change the address for giving notice by any method set forth in this section. 11. No Joint Venture. Nothing in this Agreement shall, or shall be deemed or construed to, create or constitute any joint venture, partnership, agency, employment, or any other relationship between the City and Company nor to create any liability for one party with respect to the liabilities or obligations of the other party or any other person. 12. Amendment, Modification, and Waiver. No amendment, modification, or waiver of any condition, provision, or term of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or by the duly authorized representative of same, and specifying with particularity the extent and nature of the amendment, modification, or waiver. Any waiver by any party of any default by another party shall not affect or impair any rights arising from any subsequent default. 13. Severability. Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any portion of this Agreement shall be deemed invalid or unenforceable, whether in whole or in part, the offending 4 Page 164 of 405 provision or part thereof shall be deemed severed from this Agreement and the remaining provisions of this Agreement shall not be affected thereby and shall continue in full force and effect. If, for any reason, a court finds that any portion of this Agreement is invalid or unenforceable as written, but that by limiting such provision or portion thereof it would become valid and enforceable, then such provision or portion thereof shall be deemed to be written, and shall be construed and enforced, as so limited. 14. Captions. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and/or reference, and they shall in no way be construed as limiting, extending, or describing either the scope or intent of this Agreement or of any provisions hereof. 15. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 16. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. 17. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 18. Time of Essence. Time is of the essence of this Agreement. IN WITNESS WHEREOF, the parties have executed this Development Agreement by their duly authorized representatives as of the date first set forth above. CITY OF WATERLOO, IOWA BCS PROPERTIES, L.L.C. By: By: Quentin Hart, Mayor Brent Dahlstrom, Manager Attest: Kelley Felchle, City Clerk 5 Page 165 of 405 EXHIBIT "A" Legal Description of Property That part of the following described property that will be platted as Lots 1-6, Village West Subdivision, City of Waterloo, Iowa: REAL PROPERTY LOCATED IN PARCEL "K", PARCEL "D" AND A CERTAIN PARCEL OF LAND AS RECORDED IN INSTRUMENT #2014000376, ALL IN THE OFFICE OF THE RECORDER, BLACK HAWK COUNTY, IOWA, ALL BEING IN THE SOUTHEAST 1/4 OF THE SOUTHWEST 1/4 AND THE SOUTHWEST 1/4 OF THE SOUTHEAST 1/4 OF SECTION 33, TOWNSHIP 89 NORTH, RANGE 13 WEST OF THE FIFTH PRINCIPAL MERIDIAN, IN WATERLOO, BLACK HAWK COUNTY, IOWA. MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTH 1/4 CORNER OF SAID SECTION 33: THENCE, N1 °45'02"W 33.00' TO A POINT ON THE NORTH RIGHT OF WAY LINE OF RIDGEWAY AVENUE, ALSO BEING THE POINT OF BEGINNING; THENCE, 589°08'15"W 138.66' ALONG SAID NORTH RIGHT OF WAY LINE TO THE SOUTHWEST CORNER OF A CERTAIN PARCEL OF LAND RECORDED IN INSTRUMENT #2014-00376 IN THE OFFICE OF THE RECORDER BLACK HAWK, COUNTY, IOWA, ALSO BEING THE SOUTHEAST CORNER OF A CERTAIN PARCEL OF LAND DESCRIBED AS PARCEL "K" AND RECORDED IN INSTRUMENT #2003-27008 AND RECORDED IN THE OFFICE OF THE RECORDER BLACK HAWK, COUNTY, IOWA; THENCE, 589°03'50"W 183.40' ALONG SAID NORTH RIGHT OF WAY LINE TO THE SOUTHWESTERLY CORNER OF SAID PARCEL "K"; THENCE, N2°45'09"W 167.84' ALONG THE EAST LINE OF SAID PARCEL "K"; THENCE, N0°52'36"W 875.11'; THENCE, N89°18'03"E 607.53' TO A POINT ON THE EAST LINE OF SAID PARCEL "D"; THENCE, S1 °44'40"E 1040.25' ALONG SAID EAST LINE OF SAID PARCEL "D" TO THE NORTH RIGHT OF WAY LINE OF RIDGEWAY AVENUE; THENCE, 589°09'13"W 211.11' ALONG SAID NORTH RIGHT OF WAY LINE; THENCE, 588°34'38"W 84.61', TO THE POINT OF BEGINNING, CONTAINING 14.71 ACRES. Page 166 of 405 CITY OF WATERLOO Council Communication Resolution approving Development Agreement between City of Waterloo and Fusion Real Estate Properties, LLC for the development of a 10,000 square foot commercial building, with a minimum assessed value of $750,000, and authorize the Mayor and City Clerk to sign and fully execute all necessary documents. City Council Meeting: 2/20/2017 Prepared: 2/16/2017 REVIEWERS: Department Planning & Zoning Clerk Office ATTACHMENTS: Description D Fusion DA SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Alternative: Reviewer Schroeder, Aric Felchle, Kelley Action Approved Approved Type Backup Material Date 2/17/2017 - 10:54 AM 2/17/2017 - 12:58 PM Resolution approving Development Agreement between City of Waterloo and Fusion Real Estate Properties, LLC for the development of a 10,000 square foot commercial building, with a minimum assessed value of $750,000, and authorize the Mayor and City Clerk to sign and fully execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director Approve the resolution The Fusion project is to expand and relocate in the Waterloo area. Having outgrown their current space, this is a great opportunity for them to expand into a growing area of the community, and provide a new venue for Cedar Valley residents to the company at a convenient location. This project will receive the land from Company for $1.00 as BCS will receive tax rebates from the project to reimburse them for the land. Through this partnership with BCS, the project works out for the Fusion project to move ahead at this time, and create new construction in this commercial and business park area. NA NA Economic Development NA Page 167 of 405 Background Information: The City has entered into a development agreement with BCS Properties LLC to create a new commercial and business park for smaller projects. The Fusion project will help be one of the first businesses into this area, joining the Reserves, Amy Weinands, and Black Hawk Gymnastics. Legal Descriptions: See attached Page 168 of 405 Prepared by Christopher S. Wendland, P.O. Box 596, Waterloo, IA 50704 Phone (319) 234-5701 DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of , 2017 by and between Fusion Real Estate Properties, LLC (the "Company") and the City of Waterloo, Iowa (the "City"). RECITALS A. City considers economic development within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. B. Company is willing and able to undertake, or to cause to be undertaken, the financing and construction of a building and related improvements on property legally described on Exhibit "A" (the "Property"), located in the Martin Road Development Plan Area of the City. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Improvements. Company owns the Property, or is acquiring the property, to construct a building for office or commercial use consisting of not less than 10,000 square feet, and related parking, landscape, and other improvements to the building and grounds (the "Improvements"). The Improvements will have an assessed value upon completion of no less than $750,000 ($230,000 land and $520,000 building).The Improvements shall be constructed in accordance with all applicable City, state, and federal building codes and shall comply with all applicable City ordinances and other applicable law. The Improvements and all site preparation and development -related work as completed by this Agreement are collectively referred to as the "Project". 2. Timeliness of Construction. The parties agree that Company's commitment to cause the Project to be undertaken and the Improvements to be constructed in a timely manner constitutes a material inducement for the City to extend Page 169 of 405 the development incentives provided for in this Agreement, and that without said commitment City would not have done so. Construction of Improvements must be completed by July 1, 2018 (the "Project Completion Date"). If development has commenced but is stopped and/or delayed as a result of an act of God, war, civil disturbance, court order, labor dispute, fire, or other cause beyond the reasonable control of Company, the requirement that construction is to be completed by the Project Completion Date shall be tolled for a period of time equal to the period of such stoppage or delay, and thereafter if construction is not completed within the allowed period of extension the City may terminate this Agreement following the failure of Company to diligently undertake construction within thirty (30) days following written notice of default from City to Company. If at any time Company fails to diligently undertake construction and other activities necessary for completion of the Project, then City may terminate this Agreement following the failure of Company to resume and diligently carry on construction within thirty (30) days following written notice of default from City to Company. 3. Water and Sewer. Company will be responsible for extending water and sewer service to any location on the Property and for payment of any associated connection fees. 4. Obligations Contingent. Each and every obligation of City under this Agreement is expressly made subject to and contingent upon City's completion of all procedures, hearings and approvals deemed necessary by City or its legal counsel for amendment of the urban renewal plan applicable to the Property and/or project are, all of which must be completed within 180 days from the date this Agreement is approved by the City Council. If such completion does not occur, then this Agreement shall be deemed canceled and shall be null and void. 5. Minimum Assessment Agreement. Company acknowledges and agrees that it, or any successor in title to the Property, will pay when due all taxes and assessments, general or special, and all other lawful charges whatsoever levied upon or assessed or placed against the Property. For itself and each of its successors in title to the Property, Company further agrees that, prior to the date set forth in Section 2 of Exhibit "B", neither it nor any successor in title will seek or cause a reduction in the taxable valuation for the Property, which shall be fixed for assessment purposes, below the amount of $750,000.00 (the "Minimum Actual Value"), through: (i) willful destruction of the Property, Improvements, or any part of either; (ii) a request to the assessor of Black Hawk County; or (iii) any proceedings, whether administrative, legal, or equitable, with any administrative body or court within the City, Black Hawk County, the State of Iowa, or the federal government. 2 Page 170 of 405 Company agrees to sign the agreement attached as Exhibit "B" concurrently with execution of this Agreement. 6. Representations and Warranties of City. City hereby represents and warrants as follows: A. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Each person who executes and delivers this Agreement and all documents to be delivered hereunder is and shall be authorized to do so on behalf of City. 7. Representations and Warranties of Company. Company hereby represents and warrants as follows: A. Company is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Company is duly organized, validly existing, and in good standing under the laws of the state of its organization and is duly qualified and in good standing under the laws of the State of Iowa. C. Company has full right, title, and authority to execute and perform this Agreement and to consummate all of the transactions contemplated herein, and each person who executes and delivers this Agreement and all documents to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 8. Materiality of Company's Promises, Covenants, Representations, and Warranties. Each and every promise, covenant, representation, and warranty set forth in this Agreement on the part of Company to be performed is a material term of this Agreement, and each and every such promise, covenant, representation, and warranty constitutes a material inducement for City to enter this Agreement. Company acknowledges that without such promises, covenants, representations, and warranties, City would not have entered this Agreement. ` Upon breach of any promise or covenant, or in the event of the incorrectness or falsity of any representation or warranty, City may, at its sole option and in addition to any other right or remedy available to it, terminate this Agreement and declare it null and void. 9. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: Page 171 of 405 (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director. (b) if to Company, at 2326 Sunset Blvd., Cedar Falls, IA 50613, Attention: Kirby Baumgard. Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. A party may change the address for giving notice by any method set forth in this section. 10. No Joint Venture. Nothing in this Agreement shall, or shall be deemed or construed to, create or constitute any joint venture, partnership, agency, employment, or any other relationship between the City and Company nor to create any liability for one party with respect to the liabilities or obligations of the other party or any other person. 11. Amendment, Modification, and Waiver. No amendment, modification, or waiver of any condition, provision, or term 'of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or by the duly authorized representative of same, and specifying with particularity the extent and nature of the amendment, modification, or waiver. Any waiver by any party of any default by another party shall not affect or impair any rights arising from any subsequent default. 12. Severability. Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any portion of this Agreement shall be deemed invalid or unenforceable, whether in whole or in part, the offending provision or part thereof shall be deemed severed from this Agreement and the remaining provisions of this Agreement shall not be affected thereby and shall continue in full force and effect. If, for any reason, a court finds that any portion of this Agreement is invalid or unenforceable as written, but that by limiting such provision or portion thereof it would become valid and enforceable, then such provision or portion thereof shall be deemed to be written, and shall be construed and enforced, as so limited. 13. Captions. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and/or reference, and they shall in no way be construed as limiting, extending, or describing either the scope or intent of this Agreement or of any provisions hereof. 4 Page 172 of 405 14. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 15. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed, an original and all of which, taken together, shall constitute one and the same instrument. 16, Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 17. Time of Essence. Time is of the essence of this Agreement. IN WITNESS WHEREOF, the parties have executed this Development Agreement by their duly authorized representatives as of the date first set forth above. 5 Page 173 of 405 CITY OF WATERLOO, IOWA Fusion Rea By: By: Quentin M. Hart, Mayor Attest: Kelley Felchle, City Clerk Estate Properties, LLC Afton J. Wilson, Manager Page 174 of 405 EXHIBIT "A" Legal Description of Property Lot 2, Village West Subdivision, City of Waterloo, Iowa. Page 175 of 405 EXHIBIT "B" MINIMUM ASSESSMENT AGREEMENT This Minimum Assessment Agreement (the "Agreement") is entered into as , 2017, by and among the CITY OF WATERLOO, IOWA ("City"), Fusion Real Estate Properties, LLC. ("Company"), and the COUNTY ASSESSOR of the City of Waterloo, Iowa ("Assessor"). WITNESSETH: WHEREAS, on or before the date hereof the City and Company have entered into a development agreement (the "Development Agreement") regarding certain real property, described in Exhibit "A" thereto, located in the City; and WHEREAS, it is contemplated that pursuant to the Development Agreement, the Company will undertake, or cause to be undertaken, the development of an area ("Project") within the Martin Road Development Plan area of the City; and WHEREAS, pursuant to Iowa Code § 403.6, as amended, the City and the Company desire to establish a minimum actual value for the land and the building pursuant to this Agreement and applicable only to the Project, which shall be effective upon substantial completion of the Project and from then until this Agreement is terminated pursuant to the terms herein and which is intended to reflect the minimum actual value of the land and buildings as to the Project only; and WHEREAS, the City and the Assessor have reviewed the preliminary plans and specifications for the improvements (the "Improvements") which the parties contemplate will be erected as a part of the Project. NOW, THEREFORE, the parties hereto, in consideration of the promises, covenants, and agreements made by each other, do hereby agree as follows: 1. Upon substantial completion of construction of the Improvements, the minimum actual taxable value which shall be fixed for assessment purposes for the land and Improvements to be constructed thereon as a part of the Project shall not be less than $750,000.00 (the "Minimum Actual Value") until termination of this Agreement. The parties agree that construction of the Improvements will be substantially completed on or before July 1, 2018. 2. The Minimum Actual Value herein established shall be of no further force and effect, and this Minimum Assessment Agreement shall terminate, on July 1, 2033. Nothing herein shall be deemed to waive Company's rights under Iowa Code § 403.6, as amended, to contest that portion of any actual value assignment made by the Assessor in excess of the Minimum Actual Value established herein. In no event, however, shall Company seek or cause the reduction of the actual value assigned below the Minimum Actual Value established herein during the term of this Agreement. Page 176 of 405 3. This Agreement shall be promptly recorded by the City with the Recorder of Black Hawk County, Iowa. The City shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, or shall be construed as, modifying the terms of the Development Agreement. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties, including but not limited to future owners of the Project property. CITY OF WATERLOO, IOWA FUSION REAL ESTATE PROPERTIES, LLC By: By: Quentin M. Hart, Mayor Afto 1. Wilson, Manager Attest: Kelley Felchle, City Clerk STATE OF IOWA ) ss. COUNTY OF BLACK HAWK On this day of , 2017, before me, a Notary Public in and for the State of Iowa, personally appeared Quentin M. Hart and Kelley Felchle, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waterloo, Iowa, a municipal corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said municipal corporation, and that said instrument was signed and sealed on behalf of said municipal corporation by authority and resolution of its City Council, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipal corporation by it and by them voluntarily executed. Notary Public 2 Page 177 of 405 STATE OF IOWA ) ) ss. BLACK HAWK COUNTY ) Subscribed and sworn to before me on , 2017 by Afton J. Wilson as Manager of Fusion Real Estate Properties 3 It �� Notary ' blic SARA ANDERSON COMMISSION NO. 770486 MY e M SSI' ' :to •ak Page 178 of 405 CERTIFICATION OF ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed for the development, and being of the opinion that the minimum market value contained in the foregoing Minimum Assessment Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the property subject to the development, upon completion of improvements to be made on it and in accordance with the Minimum Assessment Agreement, certifies that the actual value assigned to such land, building and equipment upon completion of the development shall not be less than Seven Hundred Fifty Thousand Dollars ($750,000) in the aggregate, until termination of this Minimum Assessment Agreement pursuant to the terms hereof. Assessor for Black Hawk County, Iowa Date STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) Subscribed and sworn to before me on , by T.J. Koenigsfeld, Assessor for Black Hawk County, Iowa. Notary Public Page 179 of 405 CITY OF WATERLOO Council Communication Resolution approving Development Agreement between City of Waterloo and Reed Properties, LLC for the development of a 10,000 square foot commercial building, with a minimum assessed value of $900,000, and authorize the Mayor and City Clerk to execute all necessary documents. City Council Meeting: 2/20/2017 Prepared: 2/16/2017 REVIEWERS: Department Planning & Zoning Clerk Office ATTACHMENTS: Description D Reed DA SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Reviewer Schroeder, Aric Felchle, Kelley Action Approved Approved Type Backup MateriP Date 2/17/2017 - 10:55 AM 2/17/2017 - 1:00 PM Resolution approving Development Agreement between City of Waterloo and Reed Properties, LLC for the development of a 10,000 square foot commercial building, with a minimum assessed value of $900,000, and authorize the Mayor and City Clerk to execute all necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director Approve the resolution The Black Hawk Gymnastics project is to expand and relocate in the Waterloo area. Having outgrown their current space, this is a great opportunity for them to expand into a growing area of the community, and provide a new venue for Cedar Valley residents to the company at a convenient location. This project will receive the land from Company for $1.00 as BCS will receive tax rebates from the project to reimburse them for the land. Through this partnership with BCS, the project works out for the Black Hawk Gymnastics project to move ahead at this time, and create new construction in this commercial and business park area NA NA Economic Development Page 180 of 405 Alternative: Background Information: Legal Descriptions: NA The City has entered into a development agreement with BCS Properties LLC to create a new commercial and business park for smaller projects. The Black Hawk Gymnastics project will help be one of the first businesses into this area, joining the Reserves, Amy Weinands, and Fusion. See attached Page 181 of 405 Prepared by Christopher S. Wendland, P.O. Box 596, Waterloo, IA 50704 Phone (319) 234-5701 DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of , 2016 by and between Reed Properties, L.L.C. (the "Company") and the City of Waterloo, Iowa (the "City"). RECITALS City considers economic development within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. Company is willing and able to undertake, or to cause to be undertaken, the financing and construction of a building and related improvements on property legally described on Exhibit "A" (the "Property"), located in the Martin Road Development Plan Area of the City. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Improvements. Company owns the Property, or is acquiring the property, to construct a building for office or commercial use consisting of no less than 10,000 square feet, and related parking, landscape, and other improvements to the building and grounds (the "Improvements"). The Improvements will have an assessed value upon completion of no less than $900,000 ($315,000 land and $585,000 building). The Improvements shall be constructed in accordance with all applicable City, state, and federal building codes and shall comply with all applicable City ordinances and other applicable law. The Improvements and all site preparation and development -related work as contemplated by this Agreement are collectively referred to as the "Project". 2. Timeliness of Construction. The parties agree that Company's commitment to cause the Project to be undertaken and the Improvements to be constructed in a timely manner constitutes a material inducement for the City to extend Page 182 of 405 the development incentives provided for in this Agreement, and that without said commitment City would not have done so. Construction of Improvements must be completed by December 31, 2017 (the "Project Completion Date"). If development has commenced but is stopped and/or delayed as a result of an act of God, war, civil disturbance, court order, labor dispute, fire, or other cause beyond the reasonable control of Company, the requirement that construction is to be completed by the Project Completion Date shall be tolled for a period of time equal to the period of such stoppage or delay, and thereafter if construction is not completed within the allowed period of extension the City may terminate this Agreement following the failure of Company to diligently undertake construction within thirty (30) days following written notice of default from City to Company. If at any time Company fails to diligently undertake construction and other activities necessary for completion of the Project, then City may terminate this Agreement following the failure of Company to resume and diligently carry on construction within thirty (30) days following written notice of default from City to Company. 3. Water and Sewer. Company will be responsible for extending water and sewer service to any location on the Property and for payment of any associated connection fees. 4. Obligations Contingent. Each and every obligation of City under this Agreement is expressly made subject to and contingent upon City's completion of all procedures, hearings and approvals deemed necessary by City or its legal counsel for amendment of the urban renewal plan applicable to the Property and/or project area, all of which must be completed within 180 days from the date this Agreement is approved by the City council. If such completion does not occur, then this Agreement shall be deemed canceled and shall be null and void. 6. Minimum Assessment Agreement. Company acknowledges and agrees that it, or any successor in title to the Property, will pay when due all taxes and assessments, general or special, and all other lawful charges whatsoever levied upon or assessed or placed against the Property. For itself and each of its successors in title to the Property, Company further agrees that, prior to the date set forth in Section 2 of Exhibit "B", neither it nor any successor in title will seek or cause a reduction in the taxable valuation for the Property, which shall be fixed for assessment purposes, below the amount of $900,000.00 (the "Minimum Actual Value"), through: (i) either; willful destruction of the Property, Improvements, or any part of (ii) a request to the assessor of Black Hawk County; or (iii) any proceedings, whether administrative, legal, or equitable, with any administrative body or court within the City, Black Hawk County, the State of Iowa, or the federal government. 2 Page 183 of 405 Company agrees to sign the agreement attached as Exhibit "B" concurrently with execution of this Agreement. 6. Representations and Warranties of City. City hereby represents and warrants as follows: A. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Each person who executes and delivers this Agreement and all documents to be delivered hereunder is and shall be authorized to do so on behalf of City. 7. Representations and Warranties of Company. Company hereby represents and warrants as follows: A. Company is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Company is duly organized, validly existing, and in good standing under the laws of the state of its organization and is duly qualified and in good standing under the laws of the State of Iowa. C. Company has full right, title, and authority to execute and perform this Agreement and to consummate all of the transactions contemplated herein, and each person who executes and delivers this Agreement and all documents to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 8. Materiality of Company's Promises, Covenants, Representations, and Warranties. Each and every promise, covenant, representation, and warranty set forth in this Agreement on the part of Company to be performed is a material term of this Agreement, and each and every such promise, covenant, representation, and warranty constitutes a material inducement for City to enter this Agreement. Company acknowledges that without such promises, covenants, representations, and warranties, City would not have entered this Agreement. Upon breach of any promise or covenant, or in the event of the incorrectness or falsity of any representation or warranty, City may, at its sole option and in addition to any other right or remedy available to it, terminate this Agreement and declare it null and void. 9. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: 3 Page 184 of 405 (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director. (b) if to Company, at 2605 Heather Lane, Waterloo, IA 50701 Attention: Vicki Reed Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. A party may change the address for giving notice by any method set forth in this section. 10. No Joint Venture. Nothing in this Agreement shall, or shall be deemed or construed to, create or constitute any joint venture, partnership, agency, employment, or any other relationship between the City and Company nor to create any liability for one party with respect to the liabilities or obligations of the other party or any other person. 11. Amendment, Modification, and Waiver. No amendment, modification, or waiver of any condition, provision, or term of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or by the duly authorized representative of same, and specifying with particularity the extent and nature of the amendment, modification, or waiver. Any waiver by any party of any default by another party shall not affect or impair any rights arising from any subsequent default. 12. Severability. Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any portion of this Agreement shall be deemed invalid or unenforceable, whether in whole or in part, the offending provision or part thereof shall be deemed severed from this Agreement and the remaining provisions of this Agreement shall not be affected thereby and shall continue in full force and effect. If, for any reason, a court finds that any portion of this Agreement is invalid or unenforceable as written, but that by limiting such provision or portion thereof it would become valid and enforceable, then such provision or portion thereof shall be deemed to be written, and shall be construed and enforced, as so limited. 13. Captions. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and/or reference, and they shall in no way be construed as limiting, extending, or describing either the scope or intent of this Agreement or of any provisions hereof. 4 Page 185 of 405 14. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 15. Counterparts. This Agreement may be executed in one or more Counterparts, each of which shall be deemedan original and -all of which, taken together, shall constitute one and the same instrument. 16. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 17. Time of Essence. Time is of the essence of this Agreement. IN WITNESS WHEREOF, the parties have executed this Development Agreement by their duly authorized representatives as of the date first set forth above. [signatures on next page] 5 Page 186 of 405 CITY OF WATERLOO, IOWA L.L.C. By: By: /2b Quentin Hart, Mayor Vicki L. Reed, Reed Properties, L.L.C. Attest: Kelley Feichle, City Clerk 6 Page 187 of 405 EXHIBIT "A" Legal Description of Property That part of the following described property that will be platted as Lot 3, Village West Subdivision, City of Waterloo, Iowa: REAL PROPERTY LOCATED IN PARCEL "K", PARCEL "D" AND A CERTAIN PARCEL OF LAND AS RECORDED IN INSTRUMENT #2014000376, ALL IN THE OFFICE OF THE RECORDER, BLACK HAWK COUNTY, IOWA, ALL BEING IN THE SOUTHEAST 1/4 OF THE SOUTHWEST 1/4 AND THE SOUTHWEST 1/4 OF THE SOUTHEAST 1/4 OF SECTION 33, TOWNSHIP 89 NORTH, RANGE 13 WEST OF THE FIFTH PRINCIPAL MERIDIAN, IN WATERLOO, BLACK HAWK COUNTY, IOWA. MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTH 1/4 CORNER OF SAID SECTION 33: THENCE, N1°45'02'W 33.00' TO A POINT ON THE NORTH RIGHT OF WAY LINE OF RIDGEWAY AVENUE, ALSO BEING THE POINT OF BEGINNING; THENCE, S89°08'15"W 138.66' ALONG SAID NORTH RIGHT OF WAY LINE TO THE SOUTHWEST CORNER OF A CERTAIN PARCEL OF LAND RECORDED IN INSTRUMENT #2014-00376 IN THE OFFICE OF THE RECORDER BLACK HAWK, COUNTY, IOWA, ALSO BEING THE SOUTHEAST CORNER OF A CERTAIN PARCEL OF LAND DESCRIBED AS PARCEL "K" AND RECORDED IN INSTRUMENT #2003-27008 AND RECORDED IN THE OFFICE OF THE RECORDER BLACK HAWK, COUNTY, IOWA; THENCE, S89°03'50"W 183.40' ALONG SAID NORTH RIGHT OF WAY LINE TO THE SOUTHWESTERLY CORNER OF SAID PARCEL "K"; THENCE, N2°45'09"W 167.84' ALONG THE EAST LINE OF SAID PARCEL "K"; THENCE, N0°52'36"W 875.11'; THENCE, N89°18'03"E 607.53' TO A POINT ON THE EAST LINE OF SAID PARCEL "D"; THENCE, S1°44'40"E 1040.25' ALONG SAID EAST LINE OF SAID PARCEL "D" TO THE NORTH RIGHT OF WAY LINE OF RIDGEWAY AVENUE; THENCE, S89°09'13"W 211.11' ALONG SAID NORTH RIGHT OF WAY LINE; THENCE, S88°34'38"W 84.61', TO THE POINT OF BEGINNING, CONTAINING 14.71 ACRES. Page 188 of 405 EXHIBIT "B" MINIMUM ASSESSMENT AGREEMENT This Minimum Assessment Agreement (the "Agreement") is entered into as , 2016, -by and among the CITY OF WATERLOO, IOWA ("City"), , L.L.C. ("Company"), and the COUNTY ASSESSOR of the City of Waterloo, Iowa ("Assessor"). WITNESSETH: WHEREAS, on or before the date hereof the City and Company have entered into a development agreement (the "Development Agreement") regarding certain real property, described in Exhibit "A" thereto, located in the City; and WHEREAS, it is contemplated that pursuant to the Development Agreement, the Company will undertake, or cause to be undertaken, the development of an area ("Project") within the Martin Road Development Plan area of the City; and WHEREAS, pursuant to Iowa Code § 403.6, as amended, the City and the Company desire to establish a minimum actual value for the land and the building pursuant to this Agreement and applicable only to the Project, which shall be effective upon substantial completion of the Project and from then until this Agreement is terminated pursuant to the terms herein and which is intended to reflect the minimum actual value of the land and buildings as to the Project only; and WHEREAS, the City and the Assessor have reviewed the preliminary plans and specifications for the improvements (the "Improvements") which the parties contemplate will be erected as a part of the Project. NOW, THEREFORE, the parties hereto, in consideration of the promises, covenants, and agreements made by each other, do hereby agree as follows: 1. Upon substantial completion of construction of the Improvements, the minimum actual taxable value which shall be fixed for assessment purposes for the land and Improvements to be constructed thereon as a part of the Project shall not be less than $900,000 (the "Minimum Actual Value") until termination of this Agreement. The parties agree that construction of the Improvements will be substantially completed on or before December 31, 2017. 2. The Minimum Actual Value herein established shall be of no further force and effect, and this Minimum Assessment Agreement shall terminate, on December 31, 2032. Nothing herein shall be deemed to waive Company's rights under Iowa Code § 403.6, as amended, to contest that portion of any actual value assignment made by the Assessor in excess of the Minimum Actual Value established herein. In no event, however, shall Company seek or cause the reduction of the actual value assigned below the Minimum Actual Value established herein during the term of this Agreement. Page 189 of 405 3. This Agreement shall be promptly recorded by the City with the Recorder of Black Hawk County, Iowa. The City shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, or shall be construed as, modifying the terms of the Development Agreement. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties, including but not limited to future owners of the Project property. CITY OF WATERLOO, IOWA L.L.C. By: By: Quentin Hart, Mayor name here Attest: Kelley Felchle, City Clerk STATE OF IOWA COUNTY OF BLACK HAWK On this day of , 2016, before me, a Notary Public in and for the State of Iowa, personally appeared Quentin Hart and Kelley Felchle, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waterloo, Iowa, a municipal corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said municipal corporation, and that said instrument was signed and sealed on behalf of said municipal corporation by authority and resolution of its City Council, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipal corporation by it and by them voluntarily executed. Notary Nubuc 2 Page 190 of 405 STATE OF IOWA ) ) ss. BLACK HAWK COUNTY ) Subscribed and sworn to before me on , 2016 by as of L.L.C. 3 Notary Public Page 191 of 405 CERTIFICATION OF ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed for the development, and being of the opinion that the minimum market value contained in the foregoing Minimum Assessment Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the property subject to the development, upon completion of improvements to be made on it and in accordance with the Minimum Assessment Agreement, certifies that the actual value assigned to such land, building and equipment upon completion of the development shall not be less than Nine Hundred Thousand Dollars ($900,000) in the aggregate, until termination of this Minimum Assessment Agreement pursuant to the terms hereof. Assessor for Black Hawk County, Iowa Date STATE OF IOWA ss. COUNTY OF BLACK HAWK Subscribed and sworn to before me on , by T.J. Koenigsfeld, Assessor for Black Hawk County, Iowa. otary ruoiIc 4 Page 192 of 405 CITY OF WATERLOO Council Communication Resolution amending the existing 657A Sale of Property Policy to add provisions for payment back for acquisition price ($5,000), plus another $5,000, upon completion for successful development. City Council Meeting: 2/20/2017 Prepared: 2/17/2017 REVIEWERS: Department Planning & Zoning Clerk Office Reviewer Schroeder, Aric Felchle, Kelley Action Approved Approved ATTACHMENTS: Description Type D 657A Sale of Property Policy -Amend 2017 Backup Material SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Date 2/17/2017 - 10:28 AM 2/17/2017 - 12:36 PM Resolution amending the existing 657A Sale of Property Policy to add provisions for payment back for acquisition price ($5,000), plus another $5,000, upon completion for successful development. Submitted By: Noel Anderson, Community Planning & Development Director Approve the Policy Amendment The City of Waterloo has over 100 lots that are buildable, in need of infill development, and cost the City of Waterloo over $150,000 annually to maintain. Currently, properties for sale are sold by Development Agreement to ensure development and future tax base is created. The properties have a minimum sales price of $5,000 to ensure the developer is serious and financially capable of completing the project. The City has not yet generated a fair amount of interest and reinvestment in the properties. In speaking with developers, they often have a hard time with infrastructure relocation, etc. for projects, and then sales price can be limited due to appraisals for nearby homes. This change in policy is meant to help cover the infrastructure costs and help cover a potentially lower sales price. A successful project would get their $5,000 back, plus $5,000 from the City of Waterloo. The City pays about $2,500 per year in annual maintenance per lot, so the City would be covered in a two year period, and free of ongoing costs. Plus, new homes would bring additional tax base, citizens, school children, employees, etc. None at this time, but would require payments of $10,000 per successful home in future Page 193 of 405 Source of Funds: Bond funds Policy Issue: Neighborhood Revitalization and Economic Development Alternative: Continue to see escalating costs of property maintenance Background Information: See summary Legal Descriptions: NA Page 194 of 405 Sale of 657A Property Policy: 2017 Amendment Process for identifying eligible housing for rehabilitation: 1. Housing eligible for rehabilitation will be identified based on an inspection from the inspection team. • Building Maintenance Administrator (And or Designee) • Fire Marshall (And or Designee) • Director of Community Development (And or Designee) • Community Planning and Development Director (And or Designee) 2. If property is deemed sound enough for rehabilitation, then check list of requirements for rehab will be created. 3. The Community Planning and Development Department will then prepare development proposal and bid packet. Successful bidder will be required to sign a Development Agreement binding them to a specified completion date in the agreement. Bid packet must contain a $1,000 earnest down payment and an "as is" minimum bid price of $5,000. 4. The Policy shall refund the $5,000 purchase price after successful issuance of a Certificate of Occupancy for the project, as specified in the approved Development Agreement. A successful Certificate of Occupancy shall also allow for issuance of an additional $5,000 in funds to the developer, for their time, investment, and help towards infill development for the City of Waterloo. 5. Once bid packet is complete, property will be advertised for sale by way of "For Sale" sign in yard, published in the legal section of the Waterloo Courier, and others notified by staff to generate interest in properties. 6. Once all bids are submitted on or before the deadline, Community Planning & Development staff will rank all bids with the following in mind: a. Price to be paid b. Taxable value created through new construction or rehabilitation c. Compatibility of design with surrounding development d. Highest and best use of the property for proper land use designations and long term redevelopment e. Any other criteria specific to an individual site/building Said information will then be presented to Mayor for review, and then forwarded to Building & Grounds Committee prior to City Council for review and recommendation. 7. The City Council will set date of hearing for conveyance of city owned property and publish an official notice pertinent to the requested sale. Hearing for sale of property will be held approximately two weeks later as required by State Law. 8. Property will be transferred to successful bidder by Quit Claim Deed following council approval. 9. An inspection will occur at twelve (12) months, or at a point if specified differently in Development Agreement approved by City Council. Page 195 of 405 CITY OF WATERLOO Council Communication An Ordinance amending the 2007 City of Waterloo Code of Ordinances - Weed Complaints, Abatement and Code Enforcement City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Reviewer Code Enforcement Even, LeAnn Action Approved ATTACHMENTS: Description Type ❑ Code Enforcement Cover Memo SUBJECT: Submitted by: Recommended Action: Summary Statement: Date 2/15/2017 - 5:00 PM Motion to receive, file and consider for the first time an ordinance amending the 2007 Code of Ordinances of the City of Waterloo, Iowa, by repealing Article 1- Definitions, Article B-4 - Weed Complaints, Article B-5 - Notice to Property Owners, Article B-6 - Payment, Assessment of Costs, Appeal, Article B-7 - Exceptions, Article B-8 - Violation; Penalty, of Chapter 5 - Vegetation, of Title 7 - Public Ways & Property and enacting in lieu thereof a new Article 1- Definitions, Article B-4 - Weed Complaints, Article B-5 - Notice to Property Owners, Article B-6 - Payment, Assessment of Costs, Appeal, Article B-7 - Exceptions, Article B-8 - Violation; Penalty, of Chapter 5 - Vegetation, of Title 7 - Public Ways & Property. Motion to suspend the rules. Motion to receive, file, consider and pass for the second and third times and adopt said ordinance. Submitted By: Dave Zellhoefer, City Attorney Approval. Reviewed by Ordinance Committee and recommended for approval by Council. Page 196 of 405 7-5-1: DEFINITIONS: Unless otherwise expressly stated or the context clearly indicates a different intention, the following terms shall have the following meanings in this chapter: HAZARD: Any tree or shrub which interferes with any sidewalk or the traveled portion of any roadway or alley or with visibility at any intersection, traffic -control light or sign, or otherwise endangers life or property. NUISANCE: Any tree or shrub or portion thereof which, due to death, disease, manner of growth or any other factor, may cause or promote the spread of insects or disease or may cause an annoyance to the general public. EXCESSIVE NUISANCE: Any property with three (3) or more calls for service deemed a founded nuisance. PERSON: Any individual, firm, partnership, association, corporation, company or organization of any kind and their legal representatives. PRIVATE PROPERTY: Includes all nonpublic property as defined herein. PRIVATE PROPERTY OWNER: The contract purchaser if there is one of record, otherwise the record holder of legal title as shown by the Waterloo city assessor's records. PUBLIC PROPERTY: Includes any and all property held in the name of the city by any of the departments, commissions or agencies within the city government and any and all property managed by the city by agreement with other governmental agencies or private persons. STREET: The entire width between property lines of every public way of whatever nature within the city when part thereof is open to the use of the public as a matter of right, for the purpose of vehicular or pedestrian traffic. TREES AND SHRUBS: Include all woody vegetation except where otherwise indicated. (Ord. 3341, 5-29-1984) 7-5B-4: WEED COMPLAINTS: A. The wastc managcmcnt scrviccs dcpartmcnt [code enforcement officers] shall be responsible for the administration of this article[.] _ - _ _ _ _ _ _ _ _ - • _ . - _- . - . property. B. The superintcndcnt of wastc managcmcnt scrvices, with thc approval of thc public works committcc of thc city council, shall bc authorizcd to prcparc a form for thc resolution of wccd complaint policics. A writtcn wccd complaint may bc filcd with thc city by an individual complainant. Page 197 of 405 [B.] The implementation of the provisions of this article and the Waterloo weed complaint policies shall be the responsibility of the superintcndcnt of wastc managcmcnt scrviccs, his designee, or code enforcement. [code enforcement department.]The superintendent or his dcsigncc and codc cnforccmcnt [The code enforcement department] shall have concurrent authority to cause the standards and procedures of this article to be enforced and shall be authorized to direct the removal of any weeds, grasses or other herbaceous vegetation if such vegetation is located on private property and is declared a nuisance or hazard in accordance with this article. (Ord. 5155, 3-25-2013) [C. Abandoned properties and or lots: Abandoned properties and or lots that are confirmed to be excessive nuisances will be put on a list to be mowed in accordance with the city mowing contract. Cost for said mowing may be assessed to the taxes for the property.] 7-5B-5: NOTICE TO PROPERTY OWNERS: A. Upon receipt of a complaint or observation by the superintcndcnt of wastc managcmcnt scrviccs, his/hcr dcsigncc, or cods cnforccmcnt, [code enforcement department,] a notice shall be issued to the owner (as shown by the official records of Black Hawk County), agent, and/or person in possession or control of said property, describing the nuisance or hazard on said property. The first notice issued in respect of a given property in a calendar year shall demand abatement of the nuisance or hazard within five (5) days from the date of conspicuous posting at listed address, or parcel, and service by regular mail. Notices issued in respect of the samc property in the samc calcndar year shall be dclivcrcd by conspicuous posting on the property and by rcgular mail and shall dcmand abatcmcnt of the nuisancc or hazard within thrcc (3) days from thc datc of posting and mailing. [Subsequent notices issued in respect of the same property in a calendar year shall demand abatement of the nuisance or hazard within three (3) days from the date of conspicuous posting at listed address or parcel, and service by regular mail.] Failure of the owner to abate the growth within the time frame set forth herein may result in the city's abating said growth and assessing all costs associated therewith against the affected property. For purposes of this section, days shall be measured in calendar days. B. Notice required herein shall be given in the manner prescribed, stating that the property is in violation of this article, and that failure of the owner, agent, and/or person in possession of said property to abate the growth within the time frame set forth herein may result in the city's abating the growth and assessing costs of said action against the property. If the code enforcement department, or thc firc or health dcpartmcnts dcclarc [declares] the growth to be an emergency, the city may perform any action required to abate said growth without prior notice, and assess any and all costs of said action to the property as provided herein. An "emergency" shall be any act or omission of the property owner, agent, and/or person in possession which constitutes a health, safety, or fire hazard to anyone. Page 198 of 405 one hundrcd dollars ($100.00) shall bc chargcd to a property owncr who is issucd morc than ($300.00) administrativc fcc will bc chargcd as providcd in subscction 7 5B 6B of this article. A party to whom a noticc is issucd who wishcs to contcst thc administrativc fcc may filc an appctal pursuant to subscction 7 5B 6C of this articic. (Ord. 5155, 3 25 2013) 7-5B-6: PAYMENT, ASSESSMENT OF COSTS, APPEAL: A. Payment: Upon completion of the abatement of a weed hazard or nuisance as provided for herein, the city clerk shall demand payment for the costs of such abatement, plus applicable administrative fees, from the property owner by mailing a statement of the fees and charges to the last known address of the owner and/or person in possession as shown by the records of the county. Notice shall be by ordinary mail. Said statement shall be due and payable upon mailing and shall become delinquent if not paid within ten (10) days of the mailing date of the notice. Any delinquent fees and charges may be assessed against the property for collection in the same manner as a property tax, as provided in state law. B. administrativc Fccs For Subscqucnt Abatcmcnts: If thc city is rcquircd to abatc anothcr fcc will bc thrcc hundrcd dollars ($300.00). G . Appeal: A property owner in receipt of a statement of fees and charges for a weed abatement who contests the statement may file a written appeal with the city clerk within ten (10) days of the postmarked date of the statement. An administrative fee of fifty dollars ($50.00) must be paid when the appeal is filed. Failure to file the appeal and pay the administrative fee within said ten (10) days shall constitute a waiver of the right to a hearing, and the statement of fees and charges shall thereupon become final. Hearing on the appeal before the city council or its designated committee shall be scheduled for a date within thirty (30) days of filing the appeal and shall be scheduled for no more than thirty (30) minutes in length, or such additional time as the city council or committee in its discretion may deem necessary. If the appellant desires additional time, he or she must make application to the city council or committee at least seven (7) days prior to the hearing date. The appeal hearing shall be simple and informal, without regard to technicalities of procedure or rules regarding admissibility of evidence. The city council or committee may consider any evidence it considers credible, including testimony of city employees, written summaries and other secondary sources, and give such weight to the evidence as it considers warranted. After such hearing the city council or committee shall determine whether the amount of the assessment should be affirmed, reduced, or waived. Such determination shall be contained in a written decision and shall be filed with the city clerk within ten (10) days after the hearing, or any continued session thereof. In the event the city council or committee waives the amount of the Page 199 of 405 assessment by over half, the fifty dollar ($50.00) filing fee for the appeal will be refunded to the appellant. (Ord. 5155, 3-25-2013) 7-5B-7: EXCEPTIONS: The following shall be exceptions to the provisions of this article: A. Vegetable and/or flower gardens, purposefully planted, shall be permitted to exceed twelve inches (12") in height if they are maintained free of weed hazard or nuisance. B. Wood perennials, purposefully planted, shall be permitted to exceed twelve inches (12") if they are planted and maintained in compliance with this chapter. C. Nonnoxious weeds and other growth shall be permitted to exceed twelve inches (12") in height upon those properties within the corporate city limits upon which development has never occurred and which are not located within three hundred feet (300') of dcvclopcd arctas [any developed area's closest property line] so that uncontrolled growth will constitute a weed hazard or nuisance to developed areas. 7-5B-8: VIOLATION; PENALTY: It is unlawful for any owner or person in possession of any lot, parcel or tract of ground situated within the city, to permit a weed hazard or nuisance to grow thereon or upon the abutting right of way as provided in this article. Any person who violatcs any provision of this articic shall be with subscction 1 3 2C of this codc. (Ord. 5155, 3 25 2013) [Failure of the owner to abate the growth within the time frame set forth herein may result in the city's abating said growth and assessing all costs associated therewith against the affected property. For purposes of this section, days shall be measured in calendar days.] Page 200 of 405 CITY OF WATERLOO Council Communication Motion to receive the City of Waterloo Comprehensive Annual Financial Report for fiscal year ending June 30, 2016 and place on file. City Council Meeting: 2/20/2017 Prepared: 2/15/2017 REVIEWERS: Department Finance Clerk Office Reviewer Weidner, Michelle Even, LeAnn ATTACHMENTS: Description ❑ CAFR FYE16 Council Communication ❑ City of Waterloo CAFR FYE16 Submitted by: Recommended Action: Action Approved Approved Type Cover Memo Cover Memo Date 2/15/2017 - 4:04 PM 2/15/2017 - 5:00 PM Submitted By: Michelle Weidner, Chief Financial Officer I recommend that the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2016 be placed on file. Page 201 of 405 Mayor QUENTIN HART COUNCIL MEMBERS TOM POWERS Ward 1 BRUCE JACOBS Ward 2 PATRICK MORRISSEY Ward 3 JEROME AMOS, ,TR. lYard RON WELPER Ward S TOM LIND At -Large STEVE SCT-IMITT At -Large CITY OF WATERLOO, IOWA CITY CLERK AND FINANCE DEPARTMENT 715 Mulberry St. • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 SUZY SCI TARES • Cine Clerk MICHELLE WEIDNER, CPA • Chief Financial Officer Council Communication City Council Meeting: February 20, 2017 Prepared: February 15, 2017 Dept. Head Signature: 7,4 a Number of Attachments: None SUBJECT: Comprehensive Annual Financial Report for the Year Ended June 30, 2016 Submitted by: Michelle Weidner, Chief Financial Officer Recommended City Council Action: I recommend that the Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2016 be placed on file. Summary Statement: N/A Expenditure Required: None Source of Funds: N/A Policy Issue: None Alternative: N/A Background Information: WE'RE WORKING FOR YOU! An Equal opportunity/Affirmative Action Employer Page 202 of 405 Page 203 of 405 CITY OF WATERLOO, IOWA COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2016 Prepared by: City of Waterloo Finance Department Michelle C. Weidner, CPA, Chief Financial Officer Joyce Schroeder, Financial Analyst Emily Graham, Financial Analyst Brent Bohlen, Financial Analyst Page 204 of 405 Contents Introductory Section Table of contents i — ii Transmittal letter iii — x Officials xi Organizational structure xii GFOA Certificate xiii Financial Section Independent auditor's report 1 — 2 Management's discussion and analysis 3 — 14 Basic financial statements: Government -wide financial statements: Statement of net position 15 — 16 Statement of activities 17 — 18 Fund financial statements: Balance sheet - governmental funds 19 — 22 Reconciliation of governmental funds balance sheet to the statement of net position 23 Statement of revenues, expenditures and changes in fund balances - governmental funds 24 — 25 Reconciliation of the statement of revenues, expenditures and changes in fund balances of governmental funds to the statement of activities 26 Statement of net position — enterprise funds 27 — 28 Statement of revenues, expenses and changes in net position — enterprise funds 29 Statement of cash flows — enterprise funds 30 — 31 Notes to basic financial statements 32 — 76 Required supplementary information: Other postemployment benefit plan 77 Iowa Public Employees' Retirement System: Schedule of the City's proportionate share of the net pension liability 78 Schedule of City contributions 79 Notes to required supplementary information — IPERS pension liability 80 Municipal Fire and Police Retirement System of Iowa: Schedule of the City's proportionate share of the net pension liability 81 Schedule of City contributions 82 Notes to required supplementary information — MFPRSI pension liability 83 Budgetary comparison schedule — budget and actual (modified cash basis) — all governmental funds and proprietary funds 84 — 85 Note to required supplementary information - budgetary reporting 86 Schedule of comparison — funds statements (GAAP basis) to budgetary (modified cash) basis 87 — 90 Schedule of employer contributions for Waterloo Water Works pension plan 91 — 92 Schedule of changes in net pension liability and related ratios for Waterloo Water Works pension plan 93 Notes to required supplementary information for Waterloo Water Works pension plan 94 IPERS schedule of the Waterloo Water Works proportionate share of the net pension liability 95 IPERS schedule of Waterloo Water Works contribution 96 — 97 i Page 205 of 405 Contents Financial Section (continued) Supplementary information: Schedule of revenues, expenditures and changes in fund balances — General Fund Nonmajor governmental funds: Combining balance sheet Combining statement of revenues, expenditures and changes in fund balances Nonmajor special revenue funds: Fund descriptions Combining balance sheet Combining statement of revenues, expenditures and changes in fund balances (deficit) Capital projects funds: Fund descriptions Combining balance sheet Combining statement of revenues, expenditures and changes in fund balances (deficit) Fiduciary funds, fund descriptions Agency Fund, statement of changes in assets and liabilities 98 — 108 109 110 111 112 — 113 114 — 115 116 117 — 118 119 - 120 121 122 Statistical Section (Unaudited) Statistical section contents Net position by component Changes in net position Fund balances, governmental funds Changes in fund balances, governmental funds Assessed and taxable value of property Property tax rates Principal taxpayers Property tax levies and collections Ratios of outstanding debt by type Ratios of general bonded debt outstanding Direct and overlapping governmental activities debt Legal debt margin information Sewer revenue bond coverage Demographic and economic statistics Principal area employers Full-time equivalent city government employees by function/program Operating indicators by function/program Capital asset statistics by function/program 123 124 125 — 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 — 142 143 Financial Assistance Section Schedule of expenditures of federal awards Notes to schedule of expenditures of federal awards Summary schedule of prior audit findings Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards Report on compliance for the major federal program and report on internal control over compliance required by Uniform Guidance Schedule of findings and questioned costs Corrective action plan 144 — 145 146 147 148 — 149 150 — 151 152 — 154 155 ii Page 206 of 405 CITY OF WATERLOO, IOWA 715 Mulberry St. • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 QUENTIN HART • .May. or MICHELLE WEIDNER, CPA • Chief Financial Officer Mayor QUENTIN HART January 30, 2017 COUNCIL Members of the City Council MEMBERS and Citizens of the City of Waterloo, Iowa TOM POWERS Ward 1 BRUCE JACOBS Ward 2 PATRICK MORRISSEY Ward 3 JEROME AMOS, JR. Ward 4 RON WELPER Ward 5 TOM LIND At -Large STEVE SCHMITT At -Large We are pleased to present the Comprehensive Annual Financial Report of the City of Waterloo, Iowa (the "City") for the fiscal year ended June 30, 2016 in accordance with the provisions of Chapter 11 of the Code of Iowa. This report represents the 13th consecutive year that the financial statements are presented in conformity with Governmental Accounting Standards Board Statement # 34 and the 19th consecutive time that it has been presented in accordance with generally accepted accounting principles. It has also been audited by an independent certified public accounting firm in accordance with generally accepted auditing standards and the single audit act requirements and Subpart F of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). RSM US LLP issued an unmodified ("clean") opinion on the financial statements for the year ended June 30, 2016. This report is published to provide the City Council, financial institutions and citizens detailed information concerning the financial condition of the City of Waterloo. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. Management assumes this responsibility based on a comprehensive framework of internal control established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Management therefore believes the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial activity have been included. Management is required to provide a narrative introduction, overview and analysis of the basic financial statements, known as Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A, found at pages 3 through 14 and should be read in conjunction with it. The information presented in the Statistical Section contains information that management believes that readers of the financial statements will find useful for understanding City operations. III WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 207 of 405 THE CITY'S BACKGROUND AND SERVICES Waterloo is the sixth largest and historically one of the most diverse cities in the state of Iowa, with a 2010 total census of 68,406. The City was incorporated in 1868 and is the county seat of Black Hawk County. Waterloo and the neighboring City of Cedar Falls are the primary urban centers in the region, serving as a retail and healthcare hub for the region. The City operates under a Mayor — Council form of government, with the mayor as the elected chief executive. The City Council is comprised of seven members, five of whom are elected from separate wards and two who are elected at -large. The Mayor is elected to two-year terms, and the City Council members are elected to four-year staggered terms. The City of Waterloo provides a full range of municipal services to its citizens and is organized into 20 operating departments, the activities of which are directed by the Mayor. The public services provided by the employees of the City include police and fire protection, building inspections and animal control, a regional airport, construction and maintenance of highways, streets and other infrastructure, and recreational and cultural and arts services. The City also provides solid waste collection and wastewater treatment services. Various other human services are provided through the community development, housing and human rights departments. In addition, the central garage provides vehicle maintenance services, while the human resources and management information systems departments, city attorney, city clerk and chief financial officer and their respective departments perform various administrative functions. Funds, agencies, boards, commissions, trusts and authorities involved in the provision of municipal services must be included in the City's financial reporting as component units if the City is financially accountable for them. Although the Waterloo Water Works and the Waterloo Convention & Visitors Bureau, Inc. are operated as independent entities, they do meet the requirements to be considered component units of the City, and therefore, transactions of these entities are required to be included in this report. The Waterloo Community School District and the Metropolitan Transit Authority do not meet the established criteria for component entities of the City and are therefore not included in this report. MAJOR INITIATIVES AND PROJECTS The City has undertaken a number of major improvement initiatives as described in the following paragraphs. Downtown redevelopment and the creation of economic corridors, districts of similar uses, and opportunities for other compatible development have been development priorities. The City acquired more than 4 blocks of land in the downtown core area, creating sites for development. ➢ Cedar Valley SportsPlex The Cedar Valley SportsPlex, a 125,000 square -foot recreational facility includes such things as indoor soccer fields, gyms, a leisure pool and slide, fitness facility, running track and multi-purpose activity spaces, opened in January 2014. Construction of this $23 million building was completed using private donations and gaming grants. It was built on a 1.5 -block area downtown. Several vacant and flood -damaged buildings were acquired and demolished by the City to redevelop this site. This venue is spurring activity in the downtown area. The facility continues to set membership records. iv Page 208 of 405 ➢ Cedar Valley Riverfront Renaissance The Riverfront Renaissance project was a major project that utilized state "Vision Iowa" funds, as well as private funds, local funds, and partnerships with other businesses to create three major objectives: o The RiverWalk Loop — a walking and recreational trail system along the banks of Cedar River from 1st Street to 18th Street in Downtown Waterloo. This "loop" interconnects with the overall trail system of the Cedar Valley (over 100 miles total) and is a part of the American Discovery Trail system through Iowa. o The Cedar River Dam improvements — an inflatable bladder dam system that improved boatable recreational water depth upstream of the dam at 4th Street. It was designed to allow for a potential kayak course in the future, which is now under preliminary design. o The Riverfront Amphitheater — hosting former President Barack Obama, various concerts, Friday Loo celebrations, and the local municipal band, this space has become a popular destination for many activities, and is bringing more residents and visitors to downtown Waterloo and the riverfront. Additionally, the Center for the Arts Youth Pavilion, the Veterans addition to the Grout Museum and the construction of the East Side Ministerial Alliance Community Center were all leveraged by this project. ➢ Cedar Valley TechWorks Campus Area At the other end of the Riverwalk Loop, the $52 million Cedar Valley Tech Works Campus Project is transforming two former Deere and Company 6 -story industrial buildings into a Marriott Hotel, Deere Training center and a multi -tenant green technology and advanced manufacturing innovation center. To help in the implementation of this project, the City of Waterloo became the State of Iowa's first project approved under a new State program called the Iowa Reinvestment District. The overall development will also include the creation of a Marina along the Cedar River and lots available for additional commercial development. Other development that has been created in the downtown area includes the $15 million Grand Crossing private development. Phase I is 90% complete creating 68 condominium units, Phase II has just begun construction which will have 40 condominium units and first floor retail and commercial space, and Phase III is in planning stages for over 40 additional units and commercial space. In addition, Hawkeye Community College has begun work on an $8 million urban campus downtown between these sites which will bring additional educational and student services populations downtown. ➢ Significant Brownfields Redevelopment A new 160,000 square -foot City Public Works building is open on the site of a former manufacturing company. The City received several grants to redevelop the former Construction Machinery Company site (CMC) and utilized those funds to demolish unsafe buildings, remove underground rail cars previously used for environmental dumping, and acquire one 25,000 square -foot building for redevelopment. The site is enrolled in the Iowa Department of Natural Resources Land Recycling Program. In addition to redeveloping a Brownfield site, the facility consolidated many public works functions and provides more efficient and effective operations for the City. The City was awarded $5 million in state I -Jobs funding and $1 million in funds from the Black Hawk Gaming Association for this $9 million project. V Page 209 of 405 The City also completed the demolition of more than ten acres of buildings on the former Chamberlain Manufacturing complex site. Chamberlain, the company that formerly operated Chamberlain Manufacturing, is working with the EPA to address potential pollution remediation needs at the site as well. As the work on environmental testing continues to show evidence of progress, the City will continue to work towards additional cleanup and redevelopment activities. > Street Improvements The street system continues to be maintained using a substantial program of reconstruction, overlays and long-term repairs funded with approximately $9.5 million in annual local option sales tax collections. The one -cent local option tax was renewed in November 2013 by the taxpayers for another ten years, continuing to be required to be used for street repairs and improvements. Other major construction initiatives that are primarily funded with grants include the reconstruction of Highway 63 through the northern part of the city. The first segment of Highway 63 is open and design continues for other segments. Additionally, $7 million has been invested in traffic flow improvements to Kimball Avenue, which is now open. The initial paving and construction of Shaulis Road in the southern part of the city and the reconstruction of East Donald Street on the north side of the city have also been completed. > Recreational Facilities The City is also continuing to develop its extensive system of bike trails, which are being connected to countywide and regional trail networks, creating a system of more than 117 miles of trails. The Riverwalk Loop trail in downtown Waterloo has been completed and a new trail has been constructed along the newly constructed Shaulis Road connection from Highway 21 to Highway 63. A recreational area for all -terrain vehicle trails has been developed in the Riverview neighborhood, along with new picnic shelters, fishing jetties and walking trails. A new trail around Getty Lake is complete. Many improvements have been made to Riverfront Municipal Stadium, the city's baseball facility, over the past several years, including a new video board/scoreboard for the stadium. Riverfront Sports Park has been developed next to the baseball stadium with improvements including irrigation, field renovations, and electronic scoreboards, new and improved field lighting and new dugouts. Similar improvements are being made to baseball facilities at Tibbitts and Danes baseball complexes. The River Loop Amphitheatre and Mark's Park children's splash park are drawing crowds to the downtown riverfront. An LED video board and sound system have been installed at Young Arena, in addition to other facility improvements made to the facility by the Black Hawks Hockey team, a member of the United States Hockey League. Sans Souci Island, a FEMA flood buyout site on the banks of the Cedar River has been opened to the public for hiking, fishing and picnicking. > Storm Water Pump Stations As a result of the severe flooding that occurred in 2008, the City procured $17 million in funding to construct eight storm water pump stations. Construction of all eight of the pump stations is now complete. The pump stations were effective in protecting both private and public property during flooding that occurred in the fall of 2016. vi Page 210 of 405 ECONOMIC OUTLOOK The economy of Waterloo and the Cedar Valley area remains positive with continued commercial and industrial activity The City has a significant number of national and international businesses including Tyson, ConAgra, Omega/Master Brand Cabinetry, Bertch Cabinets, and Deere Waterloo Works Drivetrain Operations, Engine Works, Foundry, Product Engineering and Assembly facilities. Our regional economic development corporation, the Greater Cedar Valley Alliance & Chamber, continues to work to spur development in Waterloo as well as the entire metropolitan area. Building permit valuation reached the second highest level at $127.5 million compared to $100.2 million during the fiscal year ended June 30, 2015. There was a substantial increase in residential construction activity during the past year, with permits for 205 total new units, well above the 129 total that were taken out during the fiscal year 2015. This included Waterloo's highest total single family home construction of 99 for the year. Waterloo is a regional retail center for Black Hawk and surrounding counties. Retail sales have increased steadily by an annual average rate of approximately 1.5% in Waterloo during the ten years ended June 30, 2015 (the most recent period for which statistics are available). Retail sales in 2005 totaled $734 million and increased to $1.2 billion for the fiscal year ended June 30, 2015 (the most recent information available). The 2010 census reflected a slight population decline of 0.4% from 2000. Although Waterloo has not returned to the population levels of the 1970's (prior to the major disruption in the farm economy), the population has remained relatively stable during the past decade. The overall city tax base has also remained stable, reflecting an average annual growth level of approximately 1% for the last five years. The City has developed a more diverse employment base since the mid -seventies, although John Deere and Company continues to play a major role in the local economy. Deere (a Fortune 100 company) remains the city's largest employer and one of the larger taxpayers, currently accounting for about 6.5% of total county employment and 2% of total property values. Deere has invested $915 million in its Waterloo area facilities since 2010, including the Westfield advanced manufacturing facility and the Waterloo Foundry, now the largest electric foundry in the state. Deere's staff levels in Waterloo have grown by 34% over the past several years and reflect net growth even with the lay-off of nearly 1,000 employees during the past year. The Company has continued to experience record-setting performance years recently. The city's average unemployment level of 5.6% (at September 30, 2016) compared to the state level of 4.2%, and the national level of 5.0%. The Isle Casino Hotel Waterloo continues to provide a stable, strong revenue source for the City. The Isle employs nearly 600 Iowans and generates approximately $860,000 in annual City property taxes. The City receives a host city fee of 0.5% of weekly adjusted gross receipts in addition to an annual development fee of 1% of weekly adjusted gross receipts from the Isle. The City also continues to benefit from the one -cent local option tax for school construction. Nearly all school buildings in the city have been replaced with new construction or renovated to better address students' learning needs. The City of Waterloo and the Waterloo Community Schools have been working in partnership to utilize former school buildings and sites to be used as infill residential development. This helps the City to reinvigorate existing neighborhoods with new construction, adding new tax base to the community without the expense of additional infrastructure, and utilizing land for its highest and best use. The City and School District have demolished six dilapidated former school buildings in recent years. The sites are being vii Page 211 of 405 redeveloped into residential neighborhoods, with 26 new single family homes now completed, 2 under construction, and approximately 20 more planned. The Waterloo Community Schools have also launched a new Career Interest Academy format for many students to offer courses with a career them such as construction, business and finance, performing arts, healthcare, marketing, or engineering. East and West High Schools also offer the International Baccalaureate World Schools program. These schools share a common philosophy—a commitment to high quality, challenging, international education that both schools believe is important for our students. The TechWorks Campus is a 30 -acre advanced manufacturing, research & development, innovation, education, commercial and manufacturing center. Located in downtown Waterloo, the campus is comprised of 20 acres of development sites and 300,000 square feet of flex space and is a place for innovation and development. The 300,000 square feet of existing flex space is divided among two historic John Deere manufacturing buildings: Tech 1 and Tech 2. The Tech 1 building is home to the University of Northern Iowa Metal Casting Additive Manufacturing Center and Design Lab, Hawkeye Community College Design Lab, and is home to the largest 3D printer in North America that uses a variety of 3D printing formats, creating a well-equipped applied research center with a national reputation for innovative additive manufacturing assistance. The Cedar Valley Makerspace is also located in Techl. The campus includes parcels suitable for larger scale manufacturing facilities and two retail lots. TechWorks is the first technology park of its kind in Iowa to combine world-class business amenities within a Brownfield industrial redevelopment project. This will help leverage the region's existing advanced manufacturing base. The TechWorks has received several grants to develop the site. The construction of a new extension to West Commercial Street has opened a new route to the TechWorks Campus and Downtown Waterloo. Storm water improvements were also made to aid in the development of the TechWorks complex. The John Deere Engine and Tractor Museum opened to the public in December 2014 on the TechWorks campus and is expected to bring many visitors to downtown annually. A marina development is planned along the riverfront portion of the campus. The City and the Iowa Department of Transportation have undertaken a project to reconstruct Highway 63 through downtown Waterloo, which has resulted in the appropriation of $11,500,000 in federal funds and over $25 million in State funds to complete the design and initiate construction. The primary goals of this project are to correct the highway's current negative impact on adjacent low income and minority -populated communities, improve traffic operations and capacity and encourage private sector development along this corridor. Construction of the first segment is now complete, with two more phases to follow in the next few years. The Avenue of the Saints provides access north through Minneapolis and south through St. Louis, while Highway 20 provides access east through Chicago and west through Sioux City. The City will use over $8.7 million in federal roads funds allocated to the local urban area by the Metropolitan Planning Organization to make additional improvements, including trails and pedestrian accommodations, along the newly renovated highway system. viii Page 212 of 405 The City continues to see healthy private investment in the community. Major projects underway include the following: ➢ A $60 million expansion by Con Agra Foods, adding a David's Sunflower Seeds product line to the existing Snack Pack pudding product line, bringing an additional 52 high - paying jobs to the community. Several additional buildings are also under construction in this area, located on the newly constructed Geraldine Road extension. ➢ More than 500 lots are being planned, platted, and constructed for continued and future residential development. ➢ Commercial development exceeding $15 million is being planned near the Highway 63 and Highway 20 Interchange area, including a Love's Travel Stop, an expansion by Hawkeye Stages, an existing local business, and a multi -use commercial building. ➢ Commercial and office development along the San Marnan corridor near the Ansborough Interchange continues with over $7.5 million in projects now open, underway, or planning to start construction in the spring. This activity brings more retail components to the business park area with a new convenience store, car wash, as well as medical office and new 100,000 sq. ft. of a new modern, interior storage facility. This area also marks Farmers State Bank acquiring the Tower Park office complex and adding another 20 employees to its work force of 100 in the area. ➢ The VGM Group, which currently employs more than 800 people in the area, is currently constructing a 74,000 square -foot professional office building designed to provide space for another 250-300 employees. This expansion will also provide additional lots for further office campus development through the extension of two roads. ➢ The South Waterloo Business Park was recently named an Iowa Economic Development Authority (IEDA) certified economic development site. The site totals 181 acres and is located immediately south of Highway 20 and generally bounded by Ansborough Avenue, Shaulis Road, and Kimball Avenue. Waterloo is one of only 17 sites certified in Iowa. FINANCIAL MANAGEMENT INFORMATION Internal Controls - City management is responsible for establishing and maintaining internal controls designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. Internal control is designed to provide reasonable, but not absolute assurance that those objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Budgetary Controls - The City's management staff is responsible and is actively involved in the financial planning and management of the City for both short-term daily operations and long- range strategic planning. The objective of established budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council, as well as the budget control procedures mandated by the State of Iowa for the prevention of spending that would lead to negative fund balance. Budgetary control is exercised at two levels in compliance with both the requirements of the Code of Iowa and the City Council's adopted policies. Management control polices adopted by the City Council require that departmental and activity budgets comply with line -item ix Page 213 of 405 appropriations. Amendments exceeding de minimus guidelines require the specific approval of the City Council Finance Committee. The adopted policies also require most expenditures exceeding $1,000 to be pre -authorized by the City Council Finance Committee, which reviews those items for budget availability and compliance with procurement procedures. Long-term financial and capital improvement planning are crucial strategic functions of the City. The City's management staff, coordinated by the Planning Department, prepares and presents the five-year Capital Improvement Program (CIP) to the Mayor and City Council for their review and approval annually. The CIP outlines the City's planned schedule of capital project construction over the next five-year cycle. The CIP provides an analysis of the financial funding impact and capital debt impact of the planned construction project program. AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Waterloo, Iowa for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2015. This is the twelfth year that the City received this award, which is a prestigious national award, recognizing conformance with the highest standards for the preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The CAFR must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Management believes that the current report continues to meet the Certificate of Achievement program requirements and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS This report could not have been completed without the dedicated service of the entire Finance department and other City staff in addition to the RSM US LLP audit team. We want to express our appreciation to everyone who was involved in the completion of the audit process and the preparation of this report including the administrative staff of all City departments, and especially to Joyce Schroeder, Emily Graham and Brent Bohlen in the Finance Department and the City Clerk's staff as well. Each of you has our appreciation and respect for your contributions to this report. We also want to thank the City Council for their participation in the planning and oversight processes of the City of Waterloo financial operations. Sincerely, Quentin M. Hart Mayor x Michelle C. Weidner, CPA Chief Financial Officer Page 214 of 405 City of Waterloo, Iowa Officials June 30, 2016 Name Title Term Expires Ernest G. Clark David Jones Carolyn Cole Patrick Morrissey Quentin Hart Ron Welper Tom Lind Steven Schmitt Quentin Hart David Jones Bruce Jacobs Patrick Morrissey Jerome Amos Ron Welper Tom Lind Steven Schmitt Michelle Weidner, CPA Suzy Schares, CMC Eric Thorson, PE David Zellhoefer Daniel Trelka Elected (Before January, 2016) Mayor Council Member- 1st Ward Council Member - 2nd Ward Council Member - 3rd Ward Council Member - 4th Ward Council Member - 5th Ward Council Member - At -Large Council Member - At -Large (After December 31, 2015) Mayor Council Member- 1st Ward Council Member - 2nd Ward Council Member - 3rd Ward Council Member - 4th Ward Council Member - 5th Ward Council Member - At -Large Council Member - At -Large Appointed Chief Financial Officer City Clerk City Engineer City Attorney Director of Safety Services xi January 2016 January 2018 January 2016 January 2018 January 2016 January 2018 January 2018 January 2016 January 2018 January 2018 January 2020 January 2018 January 2020 January 2018 January 2018 January 2020 Indefinite Indefinite Indefinite Indefinite Indefinite Page 215 of 405 CITY OF WATERLOO, IOWA — ORGANIZATIONAL STRUCTURE CITIZENS OF WATERLOO City Council David Jones (Resigned Aptil201,0 Bruce Jacobs Jerome Amos Patrick Morrissey Ron Welper Ton Lind Suzy Schares City Clerk 901740 91.2 abed Daus el IF:1: I )it._c S.1 C S er'ices tic :iorsoit City Engineer Admin - Clark Rie Ji:ec tor Public ar}:t Sandie Cir ro Ila 'f c [Jeer lions Supt. Ke [Ii K at ia:i A Ipo:r Ditecmr Mayor Quentin Hart ALr:,hita Five i si Hilt lal: Rishls Director Kent Shankle Cultural Sc Arts Lt ii cctt:-r Paul Hurin Leisure 5er:ice, ate(i r C'onnn[inity Dc': CLupit:Ctil Board Host trig B cavi I. i bra rs Board Ei r.au Director hoe er City A Olney Noel Anderson Community Planning Development Director Steven Nielsen Librar; Director Govcsnirient Finance Officers Aswciation Certificate of Achievement for Excellence in Financial Reporting Pre,,ented tc' City of Waterloo Iowa For its Comprehensive Annual 1'i[',arlcial Report For ilk f r; . ai Year Ended June 30, 2015 Ey_ sc ttive Di ctor!CEC) XIII Page 217 of 405 RSM Independent Auditor's Report RSM US LLP To the Honorable Mayor and Members of the City Council City of Waterloo, Iowa Waterloo, Iowa Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Waterloo, Iowa (the City) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the discretely presented component units, Waterloo Water Works and Waterloo Convention & Visitors Bureau, Inc., which collectively represent 100 percent of the assets, net position and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the discretely presented component units, is based solely upon the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The financial statements of Waterloo Convention & Visitors Bureau, Inc. were not audited in accordance with Government Auditing Standards. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING 1 RSM US LLP is the U.S. member firm of RSM International. a global network of independent audit, tax, and consulting firms. Visit rsmus,com/aboutus for more information regarcirPF age_218 of 405 RSM International. Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Waterloo, Iowa as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As explained in Note 22 to the basic financial statements, the Waterloo Water Works adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions and Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Rate, which restated beginning net position, net pension liability and deferred outflows of resources of the aggregate discretely presented component units. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, schedule of funding progress for other postemployment benefit information, the schedule of the city's proportionate share of the net pension liability and schedule of city contributions for the Iowa Public Employees' Retirement System, the schedule of the city's proportionate share of the net pension liability and schedule of city contributions for the Municipal Fire and Police Retirement System of Iowa, and budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying combining individual and nonmajor fund financial statements and other schedules and statements, listed in the table of contents as supplementary information, and the schedule of expenditures of federal awards, as required by the Single Audit Act and Subpart F of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us. In our opinion, based on our audit and the procedures performed as described above, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The accompanying introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audits of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2017 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. s141 PS 12P Davenport, Iowa January 30, 2017 2 Page 219 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 As management of the City of Waterloo, we offer readers of the City of Waterloo's financial statements this narrative overview and analysis of the financial activities of the City of Waterloo for the fiscal year ended June 30, 2016. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found at pages iii - x of this report. Financial Highlights • The assets and deferred outflows of resources of the City of Waterloo exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $405,271,154 (net position). Of this amount, the City's unrestricted net position ($11,182,107) is negative, due to recording the City's share of pension liabilities as required due to the implementation of GASB Statement No. 68, an accounting standard applicable for the city's participation in pension plans. • The City's total net position increased by $8,462,871 compared to the 2015 ending net position of $396,808,283. • As of the close of this current fiscal year, the City of Waterloo's governmental funds reported combined ending fund balances of $71,394,597, an increase of $11,017,473 in comparison with the prior year. Approximately 7.5 percent of this total amount, $5,341,107, is available for spending at the City's discretion (unassigned fund balance), although some funds are legally limited for specified purposes. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $9,836,132, or 20.5 percent of total General Fund expenditures. • The City of Waterloo's total long-term debt increased by $17,165,550 or 12.6 percent during the current fiscal year, due primarily to the issuance of general obligation bonds to finance various capital improvements and also for economic development projects. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Waterloo's basic financial statements. The City of Waterloo's basic financial statements are comprised of three components: (1) government -wide financial statements, (2) fund financial statements and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Waterloo's finances in a manner similar to a private - sector business. The statement of net position presents information about all of the City of Waterloo's assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the difference between them reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Waterloo is improving or deteriorating. The statement of activities presents information illustrating how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). 3 Page 220 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 Both of the government -wide financial statements distinguish functions of the City of Waterloo that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Waterloo include public safety, public works, health and social services, culture and recreation, community and economic development and general government. In addition, the convention bureau provides marketing services for tourism operated as a separate discretely presented component unit of the City. The business -type activities of the City of Waterloo include the sanitary sewer system and the solid waste system. The water utility is operated as a separate discretely presented component unit of the City. For detailed information about the Waterloo Convention & Visitors Bureau, Inc. or the Waterloo Water Works, please see their separate audited financial statements. The government -wide financial statements include only the City of Waterloo itself (known as the primary government) and its discretely presented component units, the Waterloo Water Works and Waterloo Convention and Visitors Bureau, Inc. The Waterloo Community School District and the Metropolitan Transit Authority provide services to the citizens of Waterloo but do not meet established criteria as component units of the City and thus are not included in this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Waterloo, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the City of Waterloo can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Waterloo maintains 20 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Trust and Agency Fund, Tax Increment Financing Fund, General Obligation Debt Service Fund, and the June 2016 GO Bonds Fund, all of which are considered to be major funds. Data from the other 15 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. Proprietary funds. The City of Waterloo maintains two proprietary funds, which are used to report the same functions presented as business -type activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the sanitary sewer fund and the sanitation fund. The sanitary sewer fund is considered to be a major fund of the City of Waterloo. 4 Page 221 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City of Waterloo's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has one type of fiduciary fund, an agency fund. There were no assets held in the fiduciary fund as of June 30, 2016. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. Other information. The City's budgetary comparison schedule and the other postemployment benefit plan schedule of funding progress are presented as required supplementary information immediately following the notes to the financial statements. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. Government -wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City of Waterloo, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $405,271,154 at the close of the fiscal year ended June 30, 2016. By far the largest portion of the City of Waterloo's net position (98 percent) reflects its investment in capital assets (e.g., land, buildings and improvements, infrastructure and vehicles and equipment), less any related debt used to acquire those assets that is still outstanding. The City of Waterloo uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Waterloo's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Statement of Net Position A condensed version of the Statement of Net Position as of June 30, 2016 and 2015 follows: City of Waterloo's Net Position Governmental Activities Business -Type Activities Total 2016 2015 2016 2015 2016 2015 Assets Current and other assets $ 128,687,675 $ 120,121,950 $ 22,481,940 $ 29,940,346 $ 151,169,615 $ 150,062,296 Capital assets 365,180,771 357,893,267 97,981,444 92,799,424 463,162,215 450,692,691 Total assets 493,868,446 478,015,217 120,463,384 122,739,770 614,331,830 600,754,987 Deferred outflows of resources 14,935,009 7,713,428 889,137 461,614 15,824,146 8,175,042 Liabilities Current liabilities 19,807,201 20,757,002 4,222,849 5,485,528 24,030,050 26,242,530 Long-term liabilities 120,636,207 100,914,527 24,297,384 26,287,667 144,933,591 127,202,194 Total liabilities 140,443,408 121,671,529 28,520,233 31,773,195 168,963,641 153,444,724 Deferred inflows of resources 55,309,481 57,884,928 611,700 792,094 55,921,181 58,677,022 Net position Net investment in capital assets 316,701,068 307,415,275 79,522,665 78,270,214 396,223,733 385,685,489 Restricted 20,032,995 30,438,501 672,515 727,235 20,705,510 31,165,736 Unrestricted (23,683,497) (31,681,588) 12,025,408 11,638,646 (11,658,089) (20,042,942) Total net position $ 313,050,566 $ 306,172,188 $ 92,220,588 $ 90,636,095 $ 405,271,154 $ 396,808,283 5 Page 222 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 $20,229,528 of the City of Waterloo's net position (5.0 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($11,182,107) is a negative position, due to the net pension liabilities for the city's share of liabilities in the (PERS and MFPRSI pension plans. The separate governmental activities had positive balances in the net investment in capital assets and fund balances restricted for specific purposes. Business -type activities also reported positive balances in all categories. The same situation held true for the prior fiscal year. The City's total net position increased by $8,462,871 during the current fiscal year from the 2015 net position of $396,808,283. Governmental -type activities' net position increased by $6,878,378 from the 2015 net position of $306,172,188. This increase was largely related to the net effect of capital asset transactions. See page 26 for a reconciliation of this increase. The total business -type activities' net position increased by $1,584,493 from the 2015 net position of $90,636,095. This increase was due primarily to capital asset and related debt transactions. Statement of Activities A condensed version of the Statement of Activities as of June 30, 2016 and 2015 follows: City of Waterloo's Changes in Net Position Governmental Activities Business -Type Activities Total 2016 2015 2016 2015 2016 2015 Revenues: Program revenues: Charges for services $ 10,025,626 $ 11,545,698 $ 17,928,023 $ 16,246,872 $ 27,953,649 $ 27,792,570 Operating grants and contributions 18,581,010 11,335,064 275,516 298,560 18,856,526 11,633,624 Capital grants and contributions 9,065,137 39,116,737 1,271,776 - 10,336,913 39,116,737 General revenues: Property taxes 46,327,997 45,514,979 - 46,327,997 45,514,979 Other taxes 17,554,079 17,471,721 - 17,554,079 17,471,721 Other 2,410,436 1,288,756 49,277 41,425 2,459,713 1,330,181 Total revenues 103,964,285 126,272,955 19,524,592 16,586,857 123,488,877 142,859,812 Expenses: Public safety Public works Health and social services Culture and recreation Community and economic development General government Interest on long-term debt Sanitary sewer Sanitation Total expenses 34,120,160 29,670,192 295,088 11,950,688 13,753,669 5,247,593 2,048,517 25, 988, 767 29, 570, 277 325,607 11,676,287 13,190, 672 4,869,696 2,208,744 14, 018, 836 12, 518, 569 3,921,263 3,612,307 34,120,160 29, 670,192 295,088 11,950,688 13, 753, 669 5,247,593 2,048,517 14,018,836 3,921,263 25, 988, 767 29,570,277 325,607 11,676,287 13,190, 672 4,869,696 2,208,744 12, 518, 569 3,612,307 97,085,907 87,830,050 17,940,099 16,130, 876 115, 026, 006 103, 960, 926 Increase in net position before transfers 6,878,378 38,442,905 1,584,493 455,981 8,462,871 38,898,886 Transfers (2,035) 2,035 Change in net position 6,878,378 38,440,870 1,584,493 458,016 8,462,871 38,898,886 Net position, beginning 306,172,188 267,731,318 90,636,095 90,178,079 396,808,283 357,909,397 Net position, ending $ 313,050,566 $ 306,172,188 $ 92,220,588 $ 90,636,095 $ 405,271,154 $ 396,808,283 6 Page 223 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 Total governmental activities' revenue for the current fiscal year was $103,964,285. The largest single revenue source for the City was property taxes of $46,327,997. Property taxes increased by $813,018 (1.8 percent) during the year. This increase is a result of a combination of factors, including an increase in the assessed value of property of 0.7 percent, a reduction of 0.5 percent in the taxable value of property and a reduction of 1.1 percent in the levy rate. Certain revenues are generated that are specific to governmental program activities. These totaled $37,671,773 during the fiscal year ended June 30, 2016. The graph below illustrates the comparison between the expenses by governmental activity type and the revenues generated that are specific to those activities. Expenses and Program Revenues—Governmental Activities $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- $(5,000,000) Public safety Public works lk Health and Culture and Community General Interest and social recreation and government issuance services economic costs on development long-term debt •Expenses ■Revenues The graph below shows the percentage of the total governmental revenues allocated by each revenue type. Revenues by Source - Governmental Activities Other Charges for 2% services Other Taxes 17% Roperty Taxes 44% 7 Operating Grants and Contributions 18% Capital Grants and Contributions 9% Page 224 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 Total business -type activities' revenue for the fiscal year was $19,524,592. $19,475,315 of this revenue was generated for specific business -type activity expenses. The graph below shows a comparison between the business -type activity expenses and program revenues. Expenses and Program Revenues - Business -Type Activities $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Sanitary Sewer San Ration • Expenses • Revenues The graph below shows the breakdown of revenues by source for the business -type activities. Revenues by Source - Business -Type Activities Capital Grants and Contributions 7% Operating Grants and Contributions 1% Charges i 01 services 92% Business -type activities. Business -type activities increased the City of Waterloo's net position by $1,584,493 from the 2015 net position of $90,636,095, accounting for 18.7 percent of the growth in the City's net position. This increase was due primarily to the generation of operating revenue that was used for the construction of mandated sewer system improvements and to repay related debt. 8 Page 225 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 Financial Analysis of the Government's Funds As noted earlier, the City of Waterloo uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City of Waterloo's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City of Waterloo's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Waterloo's governmental funds reported combined ending fund balances of $71,394,597, an increase of $11,017,473 in comparison with the prior year. Fund balance in the amount of $66,053,490 is not available for new spending because it represents amounts previously paid for items that were not exhausted at year-end (nonspendable) or has already been restricted, committed or assigned to be used for a variety of purposes.. Approximately 7.5 percent of total fund balance or $5,341,107, constitutes unassigned fund balance. The General Fund is the chief operating fund of the City of Waterloo. At the end of the current fiscal year, unassigned fund balance of the General Fund was $9,836,132, while total fund balance was $25,501,012. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 20.5 percent of total General Fund expenditures, while total fund balance represents 53.1 percent of that same amount. Net general fund operations resulted in an increase in total general fund balance of $994,617, and a decrease in unassigned fund balance of $388,827 for the year. Several items contributed to these results. The City continued to realize savings in health care costs during the year ended June 30, 2016. Net claims expense was $1 million less than expected. While most operating activities came in under budget for the year, those savings were primarily due the health care cost savings that are restricted and not available for general use. Additional savings resulted from positions that were vacant for portions of the year. Overall general fund revenue was $180,111 less than budgeted. Utility franchise fee revenue was the largest underperforming revenue source, $347,000 less than expected, due to milder weather and less customer use than predicted. This was offset by other revenue sources outperforming expectations, including proceeds from the sale of city owned property of $135,000. The City originally budgeted for no change in unassigned fund balance for operations for the budget year ended June 30, 2016. However, $500,000 was budgeted to be used for operations for the budget year ending June 30, 2017.This amount was included in assigned fund balance at June 30, 2016, resulting in less unassigned fund balance at June 30, 2016. Overall performance was better than expected by $111,173 for the year. Trust & Agency Fund— The net decrease in fund balance during the current year was $144,370, resulting from a variety of factors, including revenue less than originally budgeted due to the settlement of several property tax appeal cases and additional pension expense incurred due to payments required for employees returning from military leave. 9 Page 226 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 The General Obligation Debt Service Fund—The net decrease in fund balance of $140,062 during the current year is largely due to the planned use of refunding savings received in prior years to reduce property taxes levied. Property tax protest settlements were also a factor. TIF Fund—The total fund balance of $2,440,140 is restricted for the payment of debt service related to tax increment financing district projects. The net increase in fund balance during the current year was $2,726,228 and is the result of timing differences between revenue collections and the payment of TIF obligations. June 2016 GO Bonds Fund – The net increase in fund balance of $17,231,233 is due to the issuance of general obligation bonds in the current year. Proprietary funds. The City of Waterloo's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Total net position of the sanitary sewer fund at the end of the year was $87,384,526, an increase of $1,573,310 from the 2015 net position of $85,811,216. This increase was due primarily to the continued investment in the construction of mandated sewer system improvements using bond funds sold in prior years. Other factors concerning the finances of the sanitary sewer fund have already been addressed in the discussion of the City of Waterloo's business -type activities. Budgetary Highlights In accordance with the Code of Iowa, the City Council annually adopts a budget on the modified cash basis following required public notice and hearing for all funds. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon ten major classes of disbursements known as functions, not by fund or fund type. These ten functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital projects, business -type and non -program. Function disbursements required to be budgeted include disbursements for the general fund, special revenue funds, debt service fund, capital projects funds and permanent funds. Although the budget document presents function disbursements by fund, the legal level of control is at the aggregated function level, not at the fund or fund type level. These budget amendments are reflected in the final budgeted amounts. Differences between the original budget and the final amended budget for the City of Waterloo are summarized below. The total original expenditure budget including transfers out of $179,785,714 was increased to $200,031,131 (an increase of $20,245,417). • The City added project budgets for several Public Safety department grants and expenses funded with other miscellaneous revenue that were approved after the original budget certification date as well as increased expenditures for the animal control activity ($0.4 million). • The City amended the budget to add air service development and pavement management projects at the airport as well as increased expenditures for the sidewalk repair assessment program and two traffic signal projects ($0.4 million). • Expenditures were increased for the SportsPlex due to revenues exceeding original budget expectations as well as for Leisure Services and the Library due to additional grants and donations that were received ($0.4 million). 10 Page 227 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 • The City amended the budget to reflect disaster recovery grant funds for a multi -family new housing project that were awarded after the original budget certification date ($3.8 million). • The City increased expenditures for medical claims funded by stop loss insurance refunds received ($0.4 million). • The City amended the debt service budget to provide for an anticipated refunding bond issue in June 2016 ($2.4 million). • Expenditures were increased for capital projects approved for design and construction after the original budget certification date and also to reflect work completed during the current year on capital projects that were originally included in the prior year budget ($7.2 million). • The City increased the budget to fund sanitary sewer operations ($0.6 million). • Transfers out were increased to reflect the sewer portion of the refunding bond issue as well as an increased transfer from the tax increment financing fund to the capital projects fund ($4.6 million). The total original revenue budget, including other financing sources of $174,069,831 was increased to $189,346,527 (an increase of $15,276,696). • State and federal grant revenue was increased to reflect several additional grants awarded after the original budget certification for such things as public safety projects, airport improvements, parks improvements, storm water lift stations and a multi -family housing project, as well as others ($6.5 million). • Amendments were made to various miscellaneous charges for services to reflect higher revenues than originally anticipated with the certified budget ($0.5 million). • Miscellaneous revenue was increased to reflect additional donations received from Black Hawk Gaming and other entities for various City projects and for insurance and other refunds received that exceeded original budget projections ($1.3 million). • The City amended the original budget for debt proceeds to reflect bond proceeds from anticipated general obligation and sewer bond refunding issues ($2.4 million). • Transfers in were increased to reflect the sewer portion of the refunding bond issue as well as an increased transfer to the capital projects fund from the tax increment financing fund ($4.6 million) See pages 84 through 90 for the Budgetary Comparison Schedule - Budget and Actual (Modified Cash Basis) — All Governmental Funds and Proprietary Funds. Capital Asset and Debt Administration Capital Assets. The City of Waterloo's investment in capital assets for its governmental and business - type activities as of June 30, 2016, amounts to $463,162,215 (net of accumulated depreciation) as reflected in the following table. The total increase in the City of Waterloo's investment in capital assets for the current fiscal year was 2.8 percent (a 2.0 percent increase for governmental activities and a 5.6 percent increase for business -type activities). 11 Page 228 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 This investment in capital assets includes land, buildings and improvements, park facilities, vehicles and equipment, and roads, highways and bridges (also referred to as infrastructure assets) placed in service since July 1, 1980. City of Waterloo's Capital Assets at Fiscal Year End (Net of Depreciation) Governmental Activities Business -Type Activities Total 2016 2015 2016 2015 2016 2015 Land $ 44,331,630 $ 43,387,370 $ 348,055 $ 348,055 $ 44,679,685 $ 43,735,425 Land held for redevelopment 10,672,268 7,778,851 - 10,672,268 7,778,851 Buildings and improvements 71,510,780 73,455,495 47,720,172 49,108,792 119,230,952 122,564,287 Other improvements - 38,836,964 34,767,577 38,836,964 34,767,577 Software 305,913 393,569 3,988 305,913 397,557 Infrastructure 220,540,159 202,119,561 - 220,540,159 202,119,561 Furniture, vehicles, machinery and equipment 10,666,916 11,263,856 6,236,960 4,371,629 16,903,876 15,635,485 Construction -in -progress 7,153,105 19,494,565 4,839,293 4,199,383 11,992,398 23,693,948 $ 365,180,771 $ 357,893,267 $ 97,981,444 $ 92,799,424 $ 463,162,215 $ 450,692,691 Major capital assets events during the current fiscal year included the following: • The City continued to acquire land and buildings in the Downtown Master Plan Redevelopment Area as well the San Marnan, Northeast Site and Midport TIF Districts for continued economic development ($3.0 million). • Buildings and improvements completed ($2.0 million) included a new video display board at Riverfront Stadium, playground equipment at Upper Gates Park, field lighting and Riverfront Sports Park and the overlay of Taxiway A (East) at the Waterloo Regional Airport. • The city invested $1.6 million into new vehicles, equipment, computers and software for various city departments. The most significant of these included a new fire truck, ambulance, street sweeper and replacement of various mowing and maintenance equipment for the city's parks and golf courses. • Significant investments in street construction, reconstruction and overlay programs funded with local option taxes and grants were completed ($18.8 million) and transferred to infrastructure assets. Another $7.7 million in storm water and flood protection improvements were completed and transferred to infrastructure assets, including new lift stations at Hollywood Street, Cedar Bend Street, and Fletcher Avenue. An additional $5.8 million was invested in new street construction, repair of existing streets and construction of storm water improvements still in progress at June 30, 2016. • The City invested $2.6 million in new vehicles and equipment for the sewer and sanitation departments as well as added $4.9 million in sanitary sewer and storm sewer infrastructure. An additional $3.7 million was invested in sanitary sewer construction still in progress at June 30, 2016. Additional information about the City of Waterloo's capital assets can be found in Note 6 of this report. Long-term liabilities. At the end of the current fiscal year, the City of Waterloo had total bonded debt outstanding of $98,320,000. Of this amount, $98,180,000 is comprised of debt backed by the full faith and credit of the government. The remainder of the City of Waterloo's bonded debt ($140,000) represents bonds secured solely by specified revenue sources (i.e., revenue bonds). 12 Page 229 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 The City has incurred other debt to construct Ridgeway Towers, purchase land in the City's industrial parks and complete projects, as well as purchase equipment. The City has obligations to employees for benefit time not used at fiscal year-end. During the current fiscal year the balance due on these obligations increased by $12,300,550. City of Waterloo Long-term Outstanding Debt Governmental Activities Business -Type Activities Total 2016 2015 2016 2015 2016 2015 Bonded Debt: General obligation bonds $ 75,117,200 $ 67,066,200 $ 23,062,800 $ 25,673,800 $ 98,180,000 $ 92,740,000 Revenue bonds 140,000 715,000 140,000 715,000 Total bonded debt 75,117,200 67,066,200 23,202,800 26,388,800 98,320,000 93,455,000 Unamortized discounts (174,914) (132,062) (79,221) (87,525) (254,135) (219,587) Bond premium 955,433 898,973 217,849 222,357 1,173,282 1,121,330 Total bonded debt, net 75,897,719 67,833,111 23,341,428 26,523,632 99,239,147 94,356,743 Other Debt: Loans and notes 1,934,063 2,061,316 - 1,934,063 2,061,316 Deferred compensation 238 6,441 - 238 6,441 Compensated absences 4,247,266 4,035,007 347,388 294,799 4,594,654 4,329,806 Net pension liability - IPERS 9,653,901 7,631,561 2,463,483 1,948,102 12,117,384 9,579,663 Net pension liability - MFPRSI 36,408,843 26,777,406 36,408,843 26,777,406 Total other debt 52,244,311 40,511,731 2,810,871 2,242,901 55,055,182 42,754,632 Total long-term debt outstanding $ 128,142,030 $ 108,344,842 $ 26,152,299 $ 28,766,533 $ 154,294,329 $ 137,111,375 The City of Waterloo's total long-term liabilities increased by $17,165,550 (12.6 percent) during the current fiscal year, due to an increased debt issuance for economic development purposes and an increase in the net pension liabilities due for the IPERS and MFPRSI retirement plans. The government issued general obligation bonds in the amount of $19,665,000 during the current fiscal year; $17,315,000 for general purposes and $1,825,000 in general use refunding bonds and $525,000 in refunding bonds for previously financed sewer projects. The City of Waterloo maintains an Aa2 rating from Moody's Investor Services, Inc. for general obligation debt and an Aa3 rating for sewer revenue debt. State statutes limit the amount of general obligation debt a governmental entity may issue to 5 percent of its total assessed valuation. The current debt limitation for the City of Waterloo is $182,820,872, which is significantly greater than the City of Waterloo's outstanding general obligation debt ($98,180,000) and other debt subject to debt limitation ($1,934,301). The total debt subject to this limitation is $101,030,605, resulting in available debt margin of $81,790,267. Additional information about the City of Waterloo's long-term liabilities can be found in Note 9 of this report. 13 Page 230 of 405 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2016 Economic Factors and Next Year's Budgets and Rates Property taxes provide 45 percent of General Fund revenues. Over the past five years, citywide assessed valuations have risen an average of 0.6 percent annually, while property tax regulations imposed by the State of Iowa resulted in taxable values increasing by an average of 1.7 percent over that same time period. The fiscal 2016 budget reflects total property tax and utility excise tax revenue to decline by 1.8 percent. State property tax reform added a provision that the state would replace property tax revenue lost due to the implementation of a new reduction in taxable value of commercial and industrial properties. The City budgeted to receive $1.8 million in property tax replacement payments. The franchise fee of 2 percent for gas and electric utilities that was implemented effective July 1, 2013 to diversify revenue sources was increased to 3 percent effective July 1, 2014. This revenue source is expected to generate approximately $3 million in revenue for the year ending June 30, 2016. As discussed elsewhere in this report, the City budgeted to use $500,000 in general fund reserves for general operations for the year ended June 30, 2016. Personnel costs make up a significant portion of City operating costs. Wage increases identified in contractual bargaining agreements are 3 percent for fiscal year 2016. The employer contribution rate required for the Municipal Fire and Police Retirement System decreased by 8.7 percent, while the contribution rate for the Iowa Public Employees Retirement System remained at the same rate as the prior year. After many years of increases in health care costs, the anticipated health care costs for the year ending June 30, 2016 are expected to decline. Federal and state mandates for clean water continue to result in additional costs both for sewer system users and property taxpayers. The current national economic environment continues to have an impact on the local economy, although to a lesser degree through the date of this report. Sales tax revenue is expected to be stable. Residential property values remain at a stable level. These factors were considered in preparing the City of Waterloo's budget for fiscal year 2016. Requests for Information This financial report is designed to provide a general overview of the City of Waterloo's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Michelle C. Weidner, CPA, Chief Financial Officer, City of Waterloo, 715 Mulberry Street, Waterloo, Iowa 50703. 14 Page 231 of 405 City of Waterloo, Iowa Statement of Net Position June 30, 2016 Primary Government Governmental Business -Type Activities Activities Total Waterloo Convention Waterloo & Visitors Water Works Bureau, Inc. Assets Current assets: Cash and cash equivalents $ 55,193,931 $ 10,775,915 $ 65,969,846 $ 6,668,998 $ 125,285 Restricted cash and cash equivalents 1,117,473 - 1,117,473 - - Investments - 417,179 379,420 Receivables: Customer accounts, net of allowance for uncollectible accounts 1,356,101 3,768,817 5,124,918 1,805,442 Property taxes: Delinquent 238,057 238,057 Succeeding year 45,205,033 - 45,205,033 Internal accounts (38,704) 38,704 Due from other governments: Component unit 1,074,153 1,074,153 Primary government - - 325,221 Other 10,170,145 13,405 10,183,550 Miscellaneous - - Accrued interest 9,182 - 9,182 6,515 1,573 Special assessments 212,133 353,386 565,519 - - Inventories and prepaids 557,530 23,215 580,745 510,126 12,430 Total current assets 114,020,881 16,047,595 130,068,476 9,408,260 843,929 Noncurrent assets: Restricted assets: Cash and cash equivalents Investments Receivables Loans and notes, net of allowance for uncollectible amounts Special assessments receivable Assets held for sale Capital assets, net of accumulated depreciation Capital assets not being depreciated Total noncurrent assets 14,483,713 6,434,345 20,918,058 - - 162,821 14,743 14,743 31,900 31,900 115,301 115,301 257,325 21,137 - 21,137 - 303,023,768 92,778,746 395,802,514 25,375,947 62,157,003 5,202,698 67,359,701 710,201 407,909 49,196 379,847,565 104,415,789 484,263,354 26,506,294 457,105 Total assets 493,868,446 Deferred Outflows of Resources Pension related amounts Deferred charge on refunding Total deferred outflows of resources See notes to basic financial statements. 120,463,384 614,331,830 35,914,554 1,301,034 14,935,009 860,424 15,795,433 669,216 28,713 28,713 14,935,009 889,137 15,824,146 669,216 15 Page 232 of 405 Primary Government Governmental Business -Type Activities Activities Total Waterloo Convention Waterloo & Visitors Water Works Bureau, Inc. Liabilities Current: Accounts and retainages payable $ 3,828,499 $ 1,101,204 $ 4,929,703 $ 304,669 $ 3,796 Accrued liabilities and other 1,464,495 160,731 1,625,226 128,785 9,064 Due to primary government - 962,736 Due to component unit 325,221 325,221 Due to other governments - 54,815 Noncurrent liabilities due and payable within one year 12,474,569 2,900,603 15,375,172 67,508 Unearned revenues 184,350 - 184,350 Current liabilities payable from restricted assets: Health claims 1,117,473 1,117,473 Other 261,002 - 261,002 Accrued interest 151,592 60,311 211,903 Total current liabilities 19,807,201 4,222,849 24,030,050 1,518,513 12,860 Noncurrent: Customer deposits 77,947 380,027 457,974 162,821 Worker's compensation claims 447,500 - 447,500 General obligation bonds and notes, net of bond discounts and premium 66,344,519 20,699,628 87,044,147 Other loans and notes 1,745,017 1,745,017 Other postemployment benefits obligation 4,443,299 665,661 5,108,960 Compensated absences and deferred compensation 1,515,181 88,585 1,603,766 Net pension liability 46,062,744 2,463,483 48,526,227 3,529,032 Total noncurrent liabilities 120,636,207 24,297,384 144,933,591 3,691,853 Total liabilities Deferred Inflows of Resources 140,443,408 28,520,233 168,963,641 5,210,366 12,860 Property taxes 45,205,033 - 45,205,033 Pension related amounts 10,104,448 611,700 10,716,148 77,528 Total deferred inflows of resources 55,309,481 611,700 55,921,181 77,528 Net Position Net investment in capital assets 316,701,068 79,522,665 396,223,733 Restricted for: Debt service 2,550,845 196,533 2,747,378 Tourism promotion 1,162,298 - 1,162,298 Public access television 127,615 127,615 Civil rights enforcement 61,014 61,014 Housing 4,342,698 4,342,698 Donor specified 617,022 617,022 Library 149,585 149,585 Street and right-of-way maintenance 6,577,194 - 6,577,194 Improvements 4,444,724 475,982 4,920,706 Unrestricted (deficit) (23,683,497) 12,025,408 (11,658,089) 26,086,148 49,196 5,209,728 1,238,978 Total net position $ 313,050,566 $ 92,220,588 $ 405,271,154 $ 31,295,876 $ 1,288,174 16 Page 233 of 405 City of Waterloo, Iowa Statement of Activities Year Ended June 30, 2016 Program Revenues Operating Capital Direct Indirect Charges for Grants and Grants and Expenses Allocations Services Contributions Contributions Programs/Functions Governmental activities: Public safety Public works Health and social services Culture and recreation Community and economic development General government Interest and issuance costs on long-term debt Total governmental activities Business -type activities: Sanitary Sewer Sanitation Total business -type activities Total primary government Component unit, Waterloo Water Works Component unit, Waterloo Convention & Visitors Bureau, Inc. See notes to basic financial statements. $ 34,120,160 $ $ 4,325,957 $ 690,982 $ 30,050,192 (380,000) 1,284,289 8,763,604 370,088 (75,000) (74,627) 53,013 12,000,688 (50,000) 3,645,647 323,916 13,753,669 636,414 8,704,691 5,886,093 (638,500) 207,946 44,804 2,048,517 - - - 8,473,722 14,987 576,428 98,229,407 (1,143,500) 10,025,626 18,581,010 9,065,137 13,326,836 692,000 14,277,752 3,469,763 451,500 1,892 1,271,776 3,650,271 273,624 16,796,599 1,143,500 17,928,023 275,516 1,271,776 $ 115,026,006 $ $ 27,953,649 $ 18,856,526 $ 10,336,913 $ 6,251,495 $ $ 8,293,396 $ - $ 9,023 $ 577,834 $ $ $ 641,085 $ General Revenues Taxes: Property taxes levied for general purposes Property taxes levied for debt service Other taxes: Local option sales Utility excise Gaming Hotel/motel Gas and electric Cable television Mobile home Investment earnings Miscellaneous Gain on sale of capital assets Total general revenues Changes in net position Net position, beginning of year, as restated Net position, end of year 17 Page 234 of 405 Net (Expense) Revenue and Changes in Net Position Component Units Governmental Business -Type Activities Activities Total Waterloo Convention & Waterloo Visitors Water Works Bureau, Inc. $ (29,103,221) $ $ (29,103,221) $ $ (11,148,577) (11,148,577) (316,702) (316,702) (7,966,138) (7,966,138) (3,836,136) (3,836,136) (4,994,843) (4,994,843) (2,048,517) (2,048,517) (59,414,134) (59,414,134) 1,532,584 1,532,584 2,632 2,632 1,535,216 1,535,216 (59,414,134) 1,535,216 (57,878,918) 30,794,803 15,533,194 30,794,803 15,533,194 2,050,924 63,251 9,853,274 9,853,274 1,577,775 1,577,775 1,343,753 1,343,753 1,281,311 1,281,311 2,652,450 2,652,450 775,606 775,606 69,910 - 69,910 - 187,046 49,277 236,323 35,172 7,350 2,034,957 - 2,034,957 755,397 7,499 188,433 188,433 - - 66,292,512 49,277 66,341,789 6,878,378 306,172,188 1,584,493 90,636,095 8,462,871 396,808,283 790,569 14,849 2,841,493 78,100 28,454,383 1,210,074 $ 313,050,566 $ 92,220,588 $ 405,271,154 $ 31,295,876 $ 1,288,174 18 Page 235 of 405 City of Waterloo, Iowa Balance Sheet Governmental Funds June 30, 2016 General Trust and Agency Assets Cash and cash equivalents $ 9,673,606 $ 312,263 Receivables: Customer accounts, net 1,219,742 Property tax: Delinquent 119,780 51,433 Succeeding year 20,117,362 9,205,125 Special assessments 327,434 Accrued interest - Loans and notes 31,900 Due from other funds 5,772,389 Due from other governments: Federal 93,966 Iowa 383,829 Other 212,401 100,537 Inventories and prepaids 267,413 Restricted assets: Cash and cash equivalents 11,622,367 1,844,107 Receivables 14,743 Advances to other funds - Total assets (Continued) 19 $ 49,856,932 $ 11,513,465 Page 236 of 405 Tax Increment General Obligation June 2016 Other Financing Debt Service GO Bonds Governmental Total $ 4,105,608 $ 588,210 $ 17,373,523 $ 23,140,721 $ 55,193,931 - 136,359 1,356,101 23,224 40,359 - 3,261 238,057 7,738,405 7,560,439 - 583,702 45,205,033 - - - 327,434 - - 9,182 9,182 - - - 31,900 - 30,104 - 1,650 5,804,143 156,175 85,874 43,333 658,094 752,060 8,059,136 8,442,965 420,133 975,120 290,117 557,530 2,091,379 15,601,186 - 14,743 129,612 129,612 $ 12,023,412 $ 8,348,319 $ 17,373,523 $ 35,523,346 $ 134,638,997 20 Page 237 of 405 City of Waterloo, Iowa Balance Sheet (Continued) Governmental Funds June 30, 2016 General Trust and Agency Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable $ 349,429 $ 2,058 Retainages payable - - Accrued liabilities 1,103,423 152,299 Due to other funds 30,104 Unearned revenue 184,350 Compensated absences 177,436 Due to Waterloo Convention & Visitors Bureau, Inc. 325,221 Payables from restricted assets 1,378,475 Advances from other funds 168,316 Total liabilities 3,716,754 154,357 Deferred Inflows of Resources Unavailable revenue - property tax 20,237,142 9,256,558 Unavailable revenue - local option sales tax - Unavailable revenue - special assessments 327,434 Unavailable revenue - intergovernmental 74,590 Total deferred inflows of resources 20,639,166 9,256,558 Fund balances Nonspendable Restricted Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances See notes to basic financial statements. 21 267,413 10,390,434 5,007,033 9,836,132 2,102,550 25,501,012 2,102,550 $ 49,856,932 $ 11,513,465 Page 238 of 405 Tax Increment Financing General Obligation Debt Service June 2016 Other GO Bonds Governmental Total $ 147,688 $ 14,292 $ 91,379 $ 2,487,378 $ 3,092,224 - 50,911 685,364 736,275 - - 208,773 1,464,495 1,673,955 - 4,100, 084 5,804,143 - - - 184,350 - - 29,221 206,657 - - - 325,221 - - 77,947 1,456,422 - - - 168,316 1,821,643 14,292 142,290 7,588,767 13,438,103 7,761,629 7,600,798 - 586,963 45,443,090 - - 375,000 375,000 - - - 327,434 - - 3,586,183 3,660,773 7,761,629 7,600,798 4,548,146 49,806,297 1,969,208 470,932 - 290,117 557,530 733,229 17,231,233 25,637,672 58,064,326 - 1,953,669 7,431,634 - (4,495,025) 5,341,107 2,440,140 733,229 17,231,233 23,386,433 71,394,597 $ 12,023,412 $ 8,348,319 $ 17,373,523 $ 35,523,346 $ 134,638,997 22 Page 239 of 405 City of Waterloo, Iowa Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2016 Total governmental fund balances Amounts reported for governmental activities in the statement of net position are different because: $ 71,394,597 Capital assets net of accumulated depreciation used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds 365,180,771 Assets held for resale 21,137 Certain revenues are not available to pay for current period expenditures and, therefore, are reported as deferred inflows of resources in the funds 4,601,264 Pension related deferred outflows of resources and deferred inflows of resources are not due and payable in the current year and, therefore, are not reported in the governmental funds, as follows: Deferred outflows of resources - IPERS Deferred outflows of resources - MFPRSI Deferred inflows of resources - IPERS Deferred inflows of resources - MFPRSI Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds: General obligation bonds Other loans and notes Bond discount Bond premium Other post employment benefits obligation Worker's compensation claims payable Compensated absences and deferred compensation Net pension liability - IPERS Net pension liability - MFPRSI Accrued interest payable 3,343,316 11, 591, 693 (2,395,107) (7,709,341) 4,830,561 $ (75,117, 200) (1,934,063) 174,914 (955, 433) (4,443,299) (447, 500) (4,040,847) (9,653,901) (36,408,843) (151,592) (132,977,764) Net position of governmental activities $ 313,050,566 See notes to basic financial statements. 23 Page 240 of 405 City of Waterloo, Iowa Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2016 General Trust and Agency Revenues: Property taxes $ 19,969,442 $ 10,162,678 Other taxes 6,917,710 443,559 Licenses and permits 1,455,620 Investment income 80,633 10,735 Rent 976,204 Intergovernmental 1,040,156 Charges for services 7,824,098 Interfund charges for services 1,885,000 Special assessments 138,434 Miscellaneous 1,454,500 Total revenues 41,741,797 10,616,972 Expenditures: Current operating: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service: Principal Interest and fees Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 26,938,184 3,146,095 375,769 10,008,068 1,925,673 5,648,846 4,424,221 22,794 48,042,635 4,447,015 (6,300,838) 6,169,957 Other financing sources (uses): Transfers in 6,453,326 - Transfers out (138,478) (6,314,327) Insurance proceeds 766,470 - Bond discount Bond premium Proceeds from sale of capital assets 214,138 Issuance of long-term debt - Total other financing sources (uses) 7,295,456 (6,314,327) Net changes in fund balances 994,618 (144,370) Fund balances, beginning of year 24,506,394 2,246,920 Fund balances, end of year $ 25,501,012 $ 2,102,550 See notes to basic financial statements. 24 Page 241 of 405 Tax Increment General Obligation Financing Debt Service June 2016 Other GO Bonds Governmental Total $ 7,622,740 $ 7,910,454 $ 313,560 16,807 7,396 64,296 166,591 215 $ 594,097 $ 46,259,411 9,634,250 17,309,079 35,511 1,491,131 71,261 187,047 195,025 1,235,525 25,463,875 26,670,622 318,609 8,142,707 50,000 1,935,000 138,434 578,229 2,032,729 7,639,547 8,462,297 215 36,940,857 105,401,685 1,842,087 144,486 11,170,017 81,798 1,971,903 500 - 18,583 31,380,988 23,518,475 26,664,570 - 375,769 829,915 10,837,983 9,715,687 13,483,447 5,671,640 88,836 27,460 53,470 12,781,239 11,314,503 2,169,997 12,835,209 2,068,871 13,141,920 142,306 46,891,359 114, 734,106 5,570,676 (4,679,623) (142,091) (9,950,502) (9,332,421) 89,000 2,665,079 (8,385,904) - 49,482 1,825,000 (61,455) 119,779 17,315,000 5,675,022 (43,718) 121,480 14,882,427 (14,882,427) 766,470 (61,455) 169,261 335,618 19,140,000 (8,296,904) 4,539,561 17,373,324 5,752,784 20,349,894 (2,726,228) (140,062) 17,231,233 5,166,368 873,291 (4,197,718) 11,017,473 27,584,151 60, 377,124 $ 2,440,140 $ 733,229 $ 17,231,233 $ 23,386,433 $ 71,394,597 25 Page 242 of 405 City of Waterloo, Iowa Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2016 Net change in fund balances - governmental funds Amounts reported for governmental activities in the statement of activities are different because: Capital outlays to purchase or construct capital assets are reported in the governmental funds as expenditures. However, those costs are reported in the statement of net position and are allocated over their estimated useful lives as depreciation expense in the statement of activities. The amounts of capital outlay and depreciation expense for the year are as follows: Capital outlay $ 22,580,873 Depreciation (15,146,184) The net effect of various miscellaneous transactions involving capital assets is to increase/ decrease net position: Proceeds from sale of capital assets Net gain on disposal of capital assets $ 11,017,473 7,434,689 (335,618) 188,433 (147,185) Change in assets held for resale (75,730) The issuance of long-term debt provides current financial resources to governmental funds while repayment of the principal of long-term debt consumes current financial resources. These transactions have no effect on the change in net position in the statement of activities. Also, governmental funds report the effect of premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. In addition, interest is accrued on outstanding debt in the statement of net position whereas in the governmental funds an interest expenditure is reported only when due. The following is a detail of the net effect on these differences in the treatment of long-term debt and related items: General obligation bonds issued for governmental purposes Repayment of general obligation bond principal Issuance of loans and notes Repayment of other long-term debt principal Bond discount Bond premium Amortization of bond discounts and premiums Change in accrued interest (19,140,000) 11,089,000 (98,250) 225,503 61,455 (169,261) 94,198 27,282 (7,910,073) Revenue in the statement of activities that does not provide current financial resources is not reported as revenue in the governmental funds: Current year 4,601,264 Prior year (6,483,567) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Change in other post employment benefits obligation (75,215) Change in worker's compensation claims payable (114,500) Change in compensated absences and deferred compensation liabilities (185,492) Pension expense - PERS 413,332 Pension expense - MFPRSI (1,596,618) Change in net position of governmental activities See notes to basic financial statements. 26 $ 6,878,378 Page 243 of 405 City of Waterloo, Iowa Statement of Net Position Enterprise Funds June 30, 2016 Sanitary Sewer Nonmajor - Sanitation Total Assets Current assets: Cash and cash equivalents Customer accounts receivable Special assessments receivable Due from other governments: Waterloo Water Works Other Inventories Total current assets Noncurrent assets: Advances to other funds Restricted cash and cash equivalents Capital assets, net of accumulated depreciation Capital assets not being depreciated Net capital assets Total noncurrent assets Total assets Deferred Outflows of Resources Pension related amounts Deferred charge on refunding Total deferred outflows of resources See notes to basic financial statements. 7,601,102 $ 3,174,813 $ 10,775,915 3,034,695 734,122 3,768,817 108,528 244,858 353,386 763,599 310,554 1,074,153 4,963 8,442 13,405 23,215 - 23,215 11,536,102 4,472,789 16,008,891 27,003 11,701 38,704 6,316,586 117,759 6,434,345 91,305,045 5,187,348 1,473,701 92,778,746 15,350 5,202,698 96,492,393 1,489,051 97,981,444 102,835,982 1,618,511 104,454,493 114,372,084 6,091,300 120,463,384 618,292 242,132 860,424 28,713 - 28,713 647,005 242,132 889,137 27 Page 244 of 405 Sanitary Sewer Nonmajor - Sanitation Total Liabilities, Deferred Inflows of Resources, and Net Position Liabilities: Current: Accounts payable Retainages payable Accrued liabilities Current maturities of general obligation and revenue bonds Compensated absences and deferred compensation Accrued interest Total current liabilities Noncurrent: Security deposits General obligation bonds, net bond discount and premium Other postemployment benefits obligation Compensated absences and deferred compensation Net pension liability Total noncurrent liabilities 767,968 $ 205,158 110,355 2,641,800 186,968 60,311 128,078 $ 896,046 205,158 50,376 160,731 2,641,800 71,835 258,803 60,311 3,972,560 250,289 4,222,849 262,268 20,699,628 413,044 67,796 1,775,540 117,759 252,617 20,789 687,943 380,027 20,699,628 665,661 88,585 2,463,483 23,218,276 1,079,108 24,297,384 Total liabilities 27,190,836 1,329,397 28,520,233 Deferred Inflows of Resources, pension related amounts 443,727 Net position: Net investment in capital assets Restricted for: Debt service Improvements Unrestricted Total net position 167,973 611,700 78,033,614 196,533 475,982 8,678,397 1,489,051 79,522,665 3,347,011 196,533 475,982 12,025,408 $ 87,384,526 $ 4,836,062 $ 92,220,588 28 Page 245 of 405 City of Waterloo, Iowa Statement of Revenues, Expenses and Changes in Net Position Enterprise Funds Year Ended June 30, 2016 Sanitary Sewer Nonmajor - Sanitation Total Operating revenues: Charges for sales and service $ 14,221,349 $ 3,641,773 $ 17,863,122 Miscellaneous 56,403 8,498 64,901 Total operating revenues 14,277,752 3,650,271 17,928,023 Operating expenses: Salaries and benefits Contractual services Intra -city reimbursements Commodities Depreciation Total operating expenses 3,917,024 3,168, 035 692,000 2,848,008 2,683,502 1,561,399 994,742 451,500 495,488 313,134 5,478,423 4,162,777 1,143,500 3,343,496 2,996,636 13, 308, 569 3,816,263 17,124, 832 Operating income (loss) 969,183 (165,992) 803,191 Nonoperating revenues (expenses): Interest income 40,726 8,551 49,277 Intergovernmental 1,892 273,624 275,516 Interest expense (697,846) - (697,846) Amortization (12,421) - (12,421) (Loss) on disposal of capital assets (105,000) (105,000) Total nonoperating revenues (expenses) (667,649) 177,175 (490,474) Income prior to capital contributions 301,534 11,183 312,717 Capital contributions 1,271,776 - 1,271,776 Change in net position 1,573,310 11,183 1,584,493 Net position, beginning of year 85,811,216 4,824,879 90,636,095 Net position, end of year $ 87,384,526 $ 4,836,062 $ 92,220,588 See notes to basic financial statements. 29 Page 246 of 405 City of Waterloo, Iowa Statement of Cash Flows Enterprise Funds Year Ended June 30, 2016 Sanitary Sewer Nonmajor - Sanitation Total Cash flows from operating activities: Receipts from customers and users $ 13,913,670 $ 3,564,161 $ 17,477,831 Payments to suppliers (7,190,120) (1,474,975) (8,665,095) Payments to or on behalf of employees (3,899,064) (1,527,620) (5,426,684) Payment for interfund services used (692,000) (451,500) (1,143,500) Net cash provided by operating activities 2,132,486 110,066 2,242,552 Cash flows from noncapital financing activities, intergovernmental proceeds 6,324 286,372 292,696 Cash flows from capital and related financing activities: Purchase and construction of capital assets (6,059,441) (442,522) (6,501,963) Proceeds from bonds, loans and notes, net bond premiums 539,677 - 539,677 Principal paid on debt (3,711,000) - (3,711,000) Interest paid on debt (804,976) - (804,976) Net cash (used in) capital and related financing activities (10,035,740) (442,522) (10,478,262) Cash flows from investing activities, interest received 40,726 8,551 49,277 (Decrease) in cash and cash equivalents (7,856,204) (37,533) (7,893,737) Cash and cash equivalents, beginning of year 21,773,892 Cash and cash equivalents, end of year 3,330,105 25,103, 997 $ 13,917,688 $ 3,292,572 $ 17,210,260 Reconciliation of cash and cash equivalents to statement of net position: Unrestricted cash and cash equivalents $ 7,601,102 $ 3,174,813 $ 10,775,915 Restricted cash and cash equivalents 6,316,586 117,759 6,434,345 $ 13, 917, 688 $ 3,292,572 $ 17, 210, 260 (Continued) 30 Page 247 of 405 City of Waterloo, Iowa Statement of Cash Flows (Continued) Enterprise Funds Year Ended June 30, 2016 Sanitary Sewer Nonmajor - Sanitation Total Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) $ 969,183 $ (165,992) $ 803,191 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 2,683,502 313,134 2,996,636 (Increase) in accounts receivable (353,681) (119,293) (472,974) (Increase) decrease in due from Waterloo Water Works (10,401) 33,183 22,782 (Increase) in inventories and prepaids (2,319) - (2,319) Increase (decrease) in accounts payable (1,184,101) 9,146 (1,174,955) Increase in security deposits 12,343 6,109 18,452 Increase in accrued liabilities 22,814 13,573 36,387 Increase in other post employment benefits obligation 40,547 35,768 76,315 Increase in compensated absences and deferred compensation 39,054 13,535 52,589 Increase in net pension liability 367,693 147,688 515,381 (Increase) in deferred outflows of resources (323,448) (125,091) (448,539) (Decrease) in deferred inflows of resources (128,700) (51,694) (180,394) Net cash provided by operating activities $ 2,132,486 $ 110,066 $ 2,242,552 Schedule of noncash capital and related financing activities: Payables for acquisition of capital assets $ 413,104 $ - $ 413,104 Capital assets contributed 1,271,776 - 1,271,776 Capitalized interest 96,813 - 96,813 See notes to basic financial statements. 31 Page 248 of 405 City of Waterloo, Iowa Index to the Notes to Basic Financial Statements Note Number Title Page Number 1 Nature of Operations, Reporting Entity, Basis of Presentation, 33 - 43 Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies 2 Cash and Investments 43 - 44 3 Leasing Activities 44 - 45 4 Loans and Notes 45 5 Interfund Activity 46 - 47 6 Capital Assets 47 - 50 7 Deferred Compensation Plans 50 8 Compensated Absences 51 9 Long -Term Liabilities 52 - 56 10 Operating Leases 56 11 Retirement Systems 57 - 69 12 Deficit Fund Balances 70 13 Commitments 70 14 Other Postemployment Benefits 70 - 72 15 Employee Health Care Plan 72 16 Worker's Compensation Plan 73 17 Joint Ventures and Jointly Governed Organizations 73 18 Industrial Development Revenue Bonds 73 19 Risk Management 74 20 Fund Balances 74 21 New GASB Statements and Pending Pronouncements 75 - 76 22 Prior Period Adjustment 76 23 Subsequent Event 76 32 Page 249 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies Nature of operations: The City of Waterloo, Iowa (City) is a political subdivision of the state of Iowa located in Black Hawk County. It was incorporated in 1868 and operates under the Home Rule provisions of the Constitution of Iowa. The City operates under the Mayor -Council form of government with the full-time Mayor and seven part-time City Council members elected on a nonpartisan basis. The Mayor is elected for a two- year term. City Council members from five wards plus two at -large are elected for staggered four-year terms. The City provides numerous services to citizens including public safety, public works, health and social services, culture and recreation, community and economic development and general government services. The City also provides sanitary sewer and sanitation (garbage pickup) utilities for its citizens. Through its component unit, Waterloo Water Works, water utility services are also provided. Reporting entity: In accordance with Governmental Accounting and Financial Reporting Standards, the basic financial statements include all funds, organizations, agencies, boards, commissions, authorities and material component units and have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The City has considered all potential component units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The GASB has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the City to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on, the City. These financial statements present the City of Waterloo (the primary government) and its discretely presented component units, the Waterloo Water Works and Waterloo Convention & Visitors Bureau, Inc. Complete financial statements of the Waterloo Water Works component unit can be obtained from the Waterloo Water Works administrative office, 325 Sycamore Street, Waterloo, Iowa. Complete financial statements of the Waterloo Convention & Visitors Bureau, Inc. can be obtained from their office at 500 Jefferson Street, Waterloo, Iowa. Blended component unit: The Waterloo Housing Authority (Authority) is governed by a board that includes all seven members of the City Council plus two members appointed by the Mayor, subject to approval of a majority of the City Council, for a total of nine members. Although the Authority is considered legally separate from the City, it receives administrative support from the various departments within the City's General Fund. Due to the nature of its relationship with the City, the Authority is considered part of the primary government. The Authority is reported as a special revenue fund. 33 Page 250 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Discretely presented component units: Waterloo Water Works: The Waterloo Water Works is a component unit that is legally separate from the City, but is financially accountable to the City. The Waterloo Water Works is governed by a three-member board appointed by the City Council and its operating budget is subject to the review of the City Council. The Waterloo Water Works operates on a calendar year-end and prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. Due to the different year-end, the amount reported by the Waterloo Water Works as due to the primary government and the primary government's due from the Waterloo Water Works do not agree by $111,417. Waterloo Convention & Visitors Bureau, Inc.: The Waterloo Convention & Visitors Bureau, Inc. is a nonprofit corporation and a component unit of the City whose purpose is to strengthen the local economy by competitively marketing the area as a destination for conventions, tour groups, sporting events and individual travelers. The Organization's operations are funded primarily by an allocation of the local hotel/motel tax from the City's local transient guest tax. By ordinance, the City allocates 50 percent of the tax to the Organization. The Organization is governed by a 15 -member Board of Directors. Five members are appointed by the City, and the other ten are elected by other members of the Organization's Board. Although the City does not appoint the voting majority of the Organization's Board of Directors, the Organization has been determined to be fiscally dependent on the City. Basis of presentation: Government -wide financial statements: The statement of net position and the statement of activities report information on all the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. However, interfund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by tax and intergovernmental revenue, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from the legally separate Waterloo Water Works and Waterloo Convention & Visitors Bureau, Inc. component units. The statement of net position presents the City's nonfiduciary assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as net position. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given program or function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific program or function. Program/function revenue includes: (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given program/function and (2) grants, contributions and other resources that are restricted to meeting the operational or capital requirements of a particular program/function. Taxes and other items not properly included among program revenue are reported instead as general revenue. 34 Page 251 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Fund financial statements: Separate financial statements are provided for governmental and proprietary funds. The focus of fund financial statements is on major funds. Major individual governmental funds and the major enterprise fund are reported as separate columns in the fund financial statements. All remaining governmental funds are aggregated and reported as other nonmajor governmental funds. The other enterprise fund is reported in a separate column on the enterprise funds financial statements as a nonmajor fund. Description of funds: The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balance/net position, revenue and expenditures or expenses, and other financing sources and uses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into categories as follows: Governmental Fund Types: Governmental fund types are those funds through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used; current liabilities are assigned to the fund from which they are paid; and the difference between governmental fund assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, the fund equity, is referred to as "fund balance." The measurement focus is upon determination of changes in financial position, rather than upon net income determination. The following are the City's governmental fund types: General fund is used to account for and report all financial resources not accounted for and reported in another fund. Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. Debt service funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest on long-term debt. Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. The City had the following major governmental funds: General Fund is used to account for and report all financial resources not accounted for and reported in another fund. Trust and Agency (Employee Benefits) Special Revenue Fund is required by the Code of Iowa to account for property taxes levied for employee benefits. This fund either pays benefits as expenditures (primarily police and fire pension costs) or transfers cash to the General Fund to reimburse allowable benefits paid from that fund. 35 Page 252 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Tax Increment Financing Fund is a special revenue fund used to account for the accumulation of resources from tax increment financing projects, payment of contracted rebates and other obligations related to the projects and transfers to the GO Debt Service Fund and/or other funds to reimburse the other funds for expenditures on the projects. General Obligation Debt Service Fund is required by the Code of Iowa to account for the accumulation of resources for, and payment of, debt service on general obligation long-term debt. June 2016 GO Bonds Fund is a capital project fund used to account for proceeds from the 2016 general obligation bond sale until expended for the restricted purpose. Proprietary Fund Type: Proprietary fund types are used to account for a government's ongoing organizations and activities which are similar to those often found in the private sector. The measurement focus is upon income determination, financial position and cash flows. Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to that of a private business enterprise where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. The City had the following major proprietary fund: Sanitary Sewer Fund: Operates the sewage collection system and wastewater treatment plant. Fiduciary Fund Type: To account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. Agency Fund: This is an Agency Fund used to account for property taxes collected on behalf of the Metropolitan Transit Agency, Water Works kill water assessments, and building permits passed through to Black Hawk County. Measurement focus and basis of accounting: The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Agency funds follow accrual basis of accounting but do not have a measurement focus as they report only assets and liabilities. Revenue is recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied and budgeted for. Grants and similar items are recognized as revenue at the same time the related asset is recorded. For reimbursable grants, the asset is recorded as soon as all eligibility requirements imposed by the provider have been met. 36 Page 253 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenue is recognized as soon as it is both measurable and available. Revenue is considered to be available when it is collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenue to be available if it is collected within 60 days of the end of the fiscal year. Property taxes when levied for, other taxes, charges for services, intergovernmental revenue (shared revenue, grants and reimbursements from other governments) and interest are considered to be measurable and are recognized as revenue, if available. All other revenue items are considered to be measurable and available only when cash is received by the City. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, principal and interest on long-term debt, claims and judgments, pension benefits and compensated absences are recorded as expenditures only when payment is due. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt, premiums and discounts on the issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Under terms of grant agreements, the City funds certain programs by a combination of specific cost - reimbursement grants and general revenue. It is the City's policy to first apply cost -reimbursement grant resources to such programs and then by general revenue. Proprietary funds distinguish operating revenue and expenses from nonoperating items. Operating revenue and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the City's enterprise funds are charges to customers for services. Operating expenses include the costs of services and administrative expenses. All revenue and expenses not meeting this definition are reported as nonoperating revenue and expenses. Budgets and budgetary accounting: The budgetary comparison and related disclosures are reported as required supplementary information. Summary of significant accounting policies: The significant accounting policies followed by the City include the following: Cash and cash equivalents: The cash balances of most City funds are pooled and deposited into interest-bearing demand deposit accounts. Interest earned on investments is allocated among funds in the ratio of cash provided by the fund unless otherwise provided by law. Interest earned by the Road Use Tax Fund is allocated to the General Fund. Investments consist of nonnegotiable certificates of deposit and deposits in Iowa Public Agency Investment Trust money market accounts which are stated at amortized cost. For purposes of the statement of cash flows, all short-term cash investments that are highly liquid (including restricted assets) are considered to be cash equivalents. Cash equivalents are readily convertible to known amounts of cash and, at the day of purchase, have a maturity date no longer than three months. Receivables and payables: Receivables are reported net of any allowance for uncollectible accounts. As of June 30, 2016, the General Fund had allowances for uncollectible customer accounts totaling $953,432. 37 Page 254 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Property taxes receivable are recognized on the levy or lien date, which is the date that the tax asking is certified by the City to the County Board of Supervisors. Current year delinquent property taxes receivable represent unpaid taxes from the current year. The succeeding year property taxes receivable represent taxes certified by the City to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor by March 15 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following fiscal year becomes effective on the first day of that year. Although the succeeding year property taxes receivable have been recorded, the related revenue is reported as a deferred inflow of resources (unavailable revenue) and will not be recognized as revenue until the year for which it is levied and budgeted for. Property tax revenue which became due and collectible in September and March of the fiscal year with a 11/2 percent per month penalty for delinquent payments; was based on January 1, 2014 assessed property valuations; was for the tax accrual period July 1, 2015 through June 30, 2016; and reflected the tax asking contained in the budget certified to the County Board of Supervisors in March 2015. Special assessments are levied against certain property owners and become liens against the property benefited by the improvement. Special assessments receivable consist of current assessments which are due within one year, delinquent assessments remaining unpaid after the due date, uncollected assessments which have been levied, but are not due within one year. Customer accounts receivable consist of amounts owed from private individuals or organizations for goods and services. Loans and notes consist of amounts advanced to private individuals or organizations. Collections of principal and interest from loans and notes made from federal funds are program income of the federal program when received in cash. Due from other governments consists of grants, shared revenue and amounts collected by other governments on behalf of the City. Inventories and prepaids: Inventories are valued at cost using the first-in/first-out (FIFO) method. The cost of governmental fund -type inventories are recorded as expenditures when purchased. Inventories and prepaids recorded in the governmental fund types do not reflect current available resources; therefore, an equivalent portion of fund balance is nonspendable. Prepaids consist primarily of a deposit for insurance deductibles and premiums paid in advance. Assets held for sale: Land and buildings acquired for rehabilitation and held for sale by the City is recorded at the lower of cost or fair value (specific identification basis). The cost of land acquired and construction costs incurred by the City at year-end amounted to $21,137. The cost associated with these assets are reported as expenditures in the governmental funds as they do not represent a current financial resource and are reported as assets on the government -wide statement of net position. Restricted assets: Certain assets of the governmental funds are classified as restricted assets because their use is completely restricted by donors, bond indentures, contracts or grant agreements. 38 Page 255 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net position because their use is limited by applicable bond covenants. The "revenue, operations and maintenance" account is used to report resources set aside to subsidize potential deficiencies from the City's operation that could adversely affect debt service payments. The "revenue bond debt sinking" account is used to segregate resources accumulated for debt service payments over the next 12 months. The "revenue bond debt reserve" account is used to segregate 10 percent of the original face value of bond issues which are still outstanding to provide payments due if the "debt sinking" balance is not adequate. The "revenue bond improvements" account is used to report resources set aside to meet unexpected contingencies or to fund asset renewals and replacements. The "project" account is used to report those proceeds of bond issuances that are restricted for use in construction. Bond discounts, premiums and issuance costs: In the government -wide financial statements and proprietary fund types in the fund financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bond issuance costs are reported as an expense in the year the costs are incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Bond issuance costs are reported as an expenditure in the year the costs are incurred. Interest capitalized: Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. $96,813 of interest expense in the Sanitary Sewer Fund was capitalized during the year ended June 30, 2016. Capital assets: Capital assets are reported in the applicable governmental or business -type activities columns in the government -wide statement of net position and in the fund financial statements for proprietary funds. Capital assets are recorded at historical cost. Donated capital assets are recorded at estimated acquisition value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset useful lives are not capitalized. Capital assets, other than infrastructure, are defined by the City as assets with an initial, individual cost in excess of $5,000 and estimated useful lives in excess of one year. Infrastructure is defined by the City as assets available for public use, other than buildings, and having a cost of $50,000 or more. 39 Page 256 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Depreciation is computed using the straight-line method over the estimated useful life of the asset. Estimated useful lives are as follows: Years Governmental activities: Buildings and improvements 10 - 40 Infrastructure 15 - 100 Furniture and equipment 3 - 20 Vehicles, machinery and equipment 3 - 25 Software 5 Assets under capital lease 10 - 15 Business -type activities: Buildings 15 - 50 Improvements other than buildings 50 Furniture and equipment 5 - 20 Vehicles, machinery and equipment 5 -10 Software 5 Discretely presented component units: Buildings and improvements Water supply and distribution systems Meters and equipment Machinery and equipment Leasehold improvements 8-40 10-99 5-63 5-26 5-39 The City's collection of works of art, library books and other similar assets are not capitalized. These collections are unencumbered, held for public exhibition and education, protected, cared for and preserved and subject to City policy that requires proceeds from the sale of these items to be used to acquire other collection items. Deferred outflows of resources: In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. The first is a deferred charge on refunding reported in the government -wide and enterprise funds statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The second item is a pension related deferred outflow, which consists of unrecognized items not yet charged to pension expense and contributions from the City after the measurement date but before the end of the City's reporting period. Deferred inflows of resources: In addition to liabilities, the statement of net position and balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The governmental funds report unavailable revenues from four sources: property taxes, local option sales taxes, special assessments and intergovernmental revenue. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 40 Page 257 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) In the City's government -wide statements, the property tax revenues are reported as a deferred inflow of resources and will become an inflow in the year for which they are levied and budgeted for. The City's government -wide statements also include unrecognized pension related amounts as deferred inflows. Pensions: The net pension liability, deferred inflows and outflows of resources related to pensions, pension expense, information about the fiduciary net position of the Iowa Public Employees' Retirement System (IPERS) and the Municipal Fire and Police Retirement System of Iowa (MFPRSI) and additions to/deductions from (PERS' and MFPRSI's fiduciary net position have been determined on the same basis as they are reported by (PERS and MFPRSI. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Interfund transactions: Transactions among City funds that would be treated as revenues and expenditures or expenses if they involved organizations external to City government are accounted for as revenues and expenditures or expenses in the funds involved. Transactions which constitute reimbursements to a fund for expenditures initially made from it which are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the reimbursed fund. Transactions, which constitute the transfer of resources from a fund receiving revenues to a fund through which the revenues are to be expended, are separately reported in the respective fund's operating statements. Activity between funds that are representative of lending/borrowing arrangements at the end of the fiscal year are referred to as "due to/from other funds" in the fund financial statements. Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Noncurrent portions of long-term interfund loan receivables and payables are reported as advances within the governmental and enterprise funds. Compensated absences: City ordinances and labor contracts with the City call for the accumulation of vacation, compensatory time and sick leave for subsequent use or for payment upon termination or retirement. During 2001, the City began offering an early sick leave payout option for certain employees. Qualifying employees can elect to receive 60 percent of the time in their frozen sick leave bank over a five-year period prior to their retirement or termination of employment. Vacation, compensatory time and sick pay are accrued when incurred in the government -wide and the proprietary funds statements and reported as a liability. Matured compensated absences, for example, as a result of employee retirements and resignations, are considered due and expected to be liquidated with expendable available financial resources and are reported as an expenditure and a fund liability of the respective governmental fund. Governmental fund liabilities for unmatured compensated absences are not reported in the fund financial statements. 41 Page 258 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Long-term liabilities: In the government -wide financial statements and the proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. In the governmental fund financial statements, the face amount of long-term debt issued is reported as an other financing source. Fund balance: In the governmental fund financial statements, fund balances are classified as follows: Nonspendable: Amounts which cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. Restricted: Amounts restricted to specific purposes when constraints placed on the use of the resources are either externally imposed by creditors, grantors or state or federal laws or imposed by law through constitutional provisions or enabling legislation. Committed: Amounts which can be used only for specific purposes pursuant to constraints formally imposed by the City Council through resolution approved prior to year-end. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same action it employed to commit those amounts. Assigned: Amounts constrained by the City's intent to use them for a specific purpose. The authority to assign fund balance has been delegated by the City Council to the Chief Financial Officer in accordance with the City's Fund Balance and Reserve Policy. Unassigned: All amounts not included in other spendable classifications. The General Fund is the only fund that would report a positive amount in unassigned fund balance. Residual deficit amounts of other governmental funds would also be reported as unassigned. When an expenditure is incurred in governmental funds which can be paid using either restricted or unrestricted resources, the City's policy is to pay the expenditure from restricted fund balance and then from less -restrictive classifications — committed, assigned and then unassigned fund balances. Net position: Net position represents the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources. Amounts reported as net investment in capital assets consist of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net investment in capital assets excludes unspent debt proceeds. Unspent debt proceeds for the various capital project GO Bonds Funds are $27,418,016 and the Sanitary Sewer enterprise fund is $4,853,936. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The government -wide statement of net position reports $30,494,718 of restricted net position of which $14,452,066 is restricted by enabling legislation for debt service, employee benefits, self- funded health insurance, library, tourism promotion and public access television. The City applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position are available. 42 Page 259 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Indirect allocations: Operating funds, departments and activities receive services from supporting funds, departments and activities. Annually, management estimates the value of those services and records applicable indirect allocations. Activities related to federal grant programs have not been included in the indirect cost calculations, but are reported within the function the grant serves. Estimates and assumptions: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Note 2. Cash and Investments Interest rate risk: The City's policy allows the operating funds to be invested in instruments authorized by the City's investment policy that mature within 397 days and funds not identified as operating funds to be invested with maturities longer than 397 days. However, all investments of the City shall have maturities that are consistent with the liquidity needs of the City. As of June 30, 2016, the City had investments in the Iowa Public Agency Investment Trust (IPAIT) which were valued at an amortized cost of $14,188,429 pursuant to GASB Statement No. 79. IPAIT is registered with the Securities and Exchange Commission. The City's investment in IPAIT is not subject to interest rate risk. The discretely presented Waterloo Water Works component unit's certificates of deposit are restricted to comply with debt covenants and to secure customer deposits. Credit risk: In accordance with the City's investment policy, the City may invest in interest bearing savings accounts, interest bearing money market accounts, and interest bearing checking accounts at any bank, savings and loan associations or credit union in the state of Iowa, obligations of the United States government, its agencies and instrumentalities, certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions, IPAIT, prime bankers' acceptances that mature within 270 days of purchase and are eligible for purchase by a Federal Reserve Bank, commercial paper or other short-term corporate debt that matures within 270 days of purchase and is rated within the two highest classifications, as established by at least one of the standard rating services, repurchase agreements, open-end management investment company organized in trust form, registered with Securities & Exchanges Commission. The policy does not allow the City to invest in reverse repurchase agreements and futures and options contracts. The investment in the Iowa Public Agency Investment Trust is rated AAAm by Standard & Poors. Concentration of credit risk: The City's investment policy is to diversify its investment portfolio to eliminate the risk of loss resulting from overconcentration of assets in a specific maturity, a specific issuer or a specific class of securities. However, the policy limits the City from investing in prime bankers' acceptances or commercial paper of more than 10 percent of the investment portfolio and more than 5 percent of the investment portfolio with a single issuer at the time of purchase. In addition, no more than 5 percent of all amounts invested in commercial paper and other short-term corporate debt shall be invested in paper and debt rated in the second highest classification at the time of purchase. As of June 30, 2016, the City's investments were not subject to concentration of credit risk. 43 Page 260 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 2. Cash and Investments (Continued) Custodial credit risk: For deposits, this is the risk that in the event of bank failure, the City's deposits may not be returned to it. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City and Waterloo Water Works' deposits as of June 30, 2016 were entirely covered by federal depository insurance, National Credit Union insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to ensure that there will be no loss of public funds. In addition, the City had no investments subject to custodial credit risk since the City does not hold the underlying investments. Note 3. Leasing Activities Airport: The Waterloo Municipal Airport has entered into various operating leases with airlines, fixed base operators, auto lease companies, the airport restaurant and hangar tenants, as well as farm airport land. These agreements range from month-to-month leases to longer-term leases with various specified terms. Some of these lease agreements contain cancellable conditions which eliminate any future guaranteed rentals or are contingent upon income produced by the lessee. The following is a schedule by years of the future minimum lease rentals to be received under these leases as of June 30: During the year ending June 30: 2017 $ 441,197 2018 59,478 2019 49,653 2020 44,867 2021 44,867 2022 - 2024 134,600 Total future minimum lease rentals to be received $ 774,662 Board of Regents, State of Iowa: The City has entered into a lease agreement with the Board of Regents, State of Iowa, for the former Chicago Great Western Depot building. The term of the lease is from August 21, 2001 through August 20, 2016 at a rate of $6,035 per month. The following is a schedule by years of the future minimum lease rentals to be received under the lease as of June 30: During the year ending June 30: 2017 $ 74,421 2018 74,421 2019 74,421 2020 74,421 2021 74,421 2022 12,070 Total future minimum lease rentals to be received 44 $ 384,175 Page 261 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 3. Leasing Activities (Continued) Waterloo Hotel Equities, LLC d/b/a Ramada Waterloo Civic and Convention Center: The City has entered into a lease agreement with the Waterloo Hotel Equities, LLC d/b/a Ramada Waterloo Civic and Convention Center (Hotel) for the use of the Five Sullivan Brothers Convention Center and City parking facilities. The term of the lease is from May 23, 2005 through December 31, 2019. The rental rates are based on the gross income and sales of the Five Sullivan Brothers Convention Center, also known as the Ramada Inn Convention Center (Center) paid on a monthly basis. The amount of revenue recognized for the year ended June 30, 2016 is $28,530. The lease includes a management agreement with the Hotel for the management of the Center. Note 4. Loans and Notes General Fund: Rath/Urban Development Action Grant (UDAG) Loans: In prior years, the City received federal aid in the form of UDAGs to assist local businesses, including Rath Packing Company (Rath). Rath subsequently liquidated and the City received real estate and cash as a result of the liquidation. A portion of the cash has been loaned to local businesses to assist in their economic development: Economic development revolving loans: From time -to -time, the City has made economic development loans with repayment terms of 5 years and interest ranging from 0 to 6.5 percent. These loans were paid off during 2016. Special Revenue Funds: Community Development Block Grant (CDBG) Loans: Low-interest loans: The City has fifteen low-interest rehabilitation and other loans due as of June 30, 2016, with a balance of $62,300. These loans are estimated to be uncollectible. Collections of CDBG loans are grant program income which is reported in the Special Revenue Fund (CDBG) as charges for services as received. Low-income housing loans: The City has provided seven loans for low-income housing projects, five of which have a below-market interest rate. All have minimal payments required each year until maturity. Maturities range from September 2018 to August 2031. The balance of the seven loans at June 30, 2016 was $1,267,769. Maturities range from September 2018 to August 2031. Cash received is program income and considered to be charges for services. Given the nature and collection history of the loans, the City has determined these amounts are uncollectible and has recorded an allowance for the full amount of the loans. Forgivable loans: The City, through its CDBG, HOME program, Economic Development Initiative program, Lead Paint Removal grant, federal and state Jumpstart funds and Iowans Helping Iowans funds, provides forgivable rehabilitation loans to low-income households. The loans are forgiven on a sliding scale over a five-year period, provided the home is not sold or abandoned. If the home is sold or abandoned, the City's lien against the property prevents a clear title transfer unless the unforgiven portion of the note is satisfied. As of June 30, 2016, the City had made 1,685 such loans totaling $31,550,640. The loan balances are considered forgivable and/or uncollectible by the City given the nature and terms of the loans and therefore, have not been recorded as assets on the balance sheet. 45 Page 262 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 5. Interfund Activity The composition of interfund receivables and payables balances as of June 30, 2016 was as follows: Due From Due To Major governmental funds: General $ 5,772,389 $ 30,104 Tax increment financing - 1,673,955 General obligation debt service 30,104 - Nonmajor governmental funds 1,650 4,100,084 $ 5,804,143 $ 5,804,143 Advances to and from other funds as of June 30, 2016, were as follows: Major governmental fund, General Nonmajor governmental funds Major Enterprise Fund, sanitary sewer Advances To Advances From $ - $ 168,316 129,612 - 27,003 - Nonmajor Enterprise Fund, sanitation 11,701 $ 168,316 $ 168,316 Interfund balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system and (3) payments between funds are made. The interfund receivables and payables are scheduled to be collected in the subsequent year whereas the interfund advances are not. Due to/from primary government and component units: Due to Enterprise Funds: Sanitary sewer $ 763,599 Sanitation 310,554 Due from Waterloo Water Works 1,074,153 Waterloo Water Works - due to primary government 962,736 Difference $ 111,417 The difference in the above amounts of $111,417 results from the different year ends of the entities as described in Note 1. Due to Waterloo Convention & Visitors Bureau, Inc. from General Fund 46 $ 325,221 Page 263 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 5. Interfund Activity (Continued) The following is a schedule of transfers as included in the basic financial statements of the City: Transfers In Transfers Out Major governmental funds: General $ 6,453,326 $ 138,478 Trust and agency - 6,314,327 Tax increment financing 89,000 8,385,904 General obligation debt service 2,665,079 - Nonmajor governmental funds 5,675,022 43,718 $ 14,882,427 $ 14,882,427 Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them. Note 6. Capital Assets Capital asset activity for the year ended June 30, 2016 was as follows: Beginning Ending Balance Balance June 30, 2015 Additions Deletions Transfers June 30, 2016 Governmental Activities Capital assets, not being depreciated: Land $ 43,387,370 $ 944,260 $ - $ $ 44,331,630 Land held for redevelopment 7,778,851 2,997,273 103,856 10,672,268 Construction -in -progress 19,494,565 16,014,712 (28,356,172) 7,153,105 Total capital assets, not being depreciated 70,660,786 19,956,245 103,856 (28,356,172) 62,157,003 Capital assets, being depreciated: Buildings and improvements 128,622,535 563,864 56,039 1,426,106 130,556,466 Infrastructure 329,022,739 974,893 - 26,423,938 356,421,570 Vehicles, machinery, furniture and equipment 29,960,405 1,040,129 916,316 506,128 30,590,346 Software 746,716 45,742 40,009 752,449 Total capital assets, being depreciated 488,352,395 2,624,628 1,012,364 28,356,172 518,320,831 Less accumulated depreciation for: Buildings and improvements Infrastructure Vehicles, machinery, furniture and equipment Software Total accumulated depreciation 55,167,040 126,903,178 18,696,549 353,147 3,934,685 8,978,233 2,099,868 133,398 56,039 872,987 40,009 59,045,686 135,881,411 19,923,430 446,536 201,119,914 15,146,184 969,035 215,297,063 Total capital assets, being depreciated, net 287,232,481 (12,521,556) 43,329 28,356,172 303,023,768 Governmental activities capital assets, net $ 357,893,267 $ 7,434,689 $ 147,185 $ - $ 365,180,771 47 Page 264 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 6. Capital Assets (Continued) Beginning Ending Balance Balance June 30, 2015 Additions Deletions Transfers June 30, 2016 Business -Type Activities Capital assets, not being depreciated: Land $ 348,055 $ - $ $ - $ 348,055 Construction -in -progress 4,199,383 5,610,285 (4,970,375) 4,839,293 Total capital assets, not being depreciated 4,547,438 5,610,285 (4,970,375) 5,187,348 Capital assets, being depreciated: Buildings 71,117,517 15,349 Improvements other than buildings 49,836,068 95,733 Vehicles, machinery, furniture and equipment 10,738,104 2,562,289 Software 19,940 - Total capital assets, being depreciated Less accumulated depreciation for: Buildings Improvements other than buildings Vehicles, machinery, furniture and equipment Software Total accumulated depreciation 4,970,375 319,676 71,132 ,866 54,902,176 12,980,717 19,940 131,711,629 2,673,371 319,676 4,970,375 139, 035, 699 22,008,725 15,068,491 6,366,475 15,952 1,403,969 996,721 591,958 3,988 214,676 23,412,694 16,065,212 6,743,757 19,940 43,459,643 2,996,636 214,676 46,241,603 Total capital assets, being depreciated, net 88,251,986 Business -type activities capital assets, net (323,265) 105,000 4,970,375 92,794,096 $ 92,799,424 $ 5,287,020 $ 105,000 $ - $ 97,981,444 48 Page 265 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 6. Capital Assets (Continued) Beginning Ending Balance Balance December 31, December 31, Discretely Presented Component Unit - 2014 Additions Deletions 2015 Waterloo Water Works Capital Assets Capital assets, not being depreciated: Land $ 307,000 $ 7,543 $ - $ 314,543 Construction -in -progress 899,431 1,385,733 (1,889,506) 395,658 Total capital assets, not being depreciated 1,206,431 1,393,276 (1,889,506) 710,201 Capital assets, being depreciated: Buildings and improvements 1,760,202 12,415 1,772,617 Water supply and distribution systems 29,470,327 708,193 30,178,520 Meters and equipment 1,173,594 - 1,173,594 Machinery and equipment 2,081,407 1,232,047 3,313,454 Total capital assets, being depreciated 34,485,530 1,952,655 36,438,185 Less accumulated depreciation for: Buildings and improvements 784,349 28,769 813,118 Water supply and distribution systems 7,581,498 470,361 8,051,859 Meters and equipment 691,199 27,618 718,817 Machinery and equipment 1,343,423 135,021 1,478,444 Total accumulated depreciation 10,400,469 661,769 11,062,238 Total capital assets, being depreciated, net Net discretely presented component unit - Waterloo Water Works capital assets, net 24,085,061 1,290,886 25,375,947 $ 25,291,492 $ 2,684,162 $ (1,889,506) $ 26,086,148 Ending Balance Balance Discretely Presented Component Unit - June 30, 2015 Additions Deletions June 30, 2016 Waterloo Convention & Visitors Bureau, Inc. Capital assets, being depreciated: Equipment $ 67,588 $ $ 786 $ 66,802 Leasehold improvements 125,924 125,924 Total capital assets, being depreciated 193,512 786 192,726 Less accumulated depreciation Total capital assets, being depreciated, net 49 126,105 18,211 786 143,530 $ 67,407 $ (18,211) $ $ 49,196 Page 266 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 6. Capital Assets (Continued) Depreciation expense was charged by the City as follows for the year ended June 30, 2016: Governmental activities: Public safety $ 934,739 Public works 11,702,286 Culture and recreation 2,142,398 Community and economic development 172,165 General government 194,596 Total governmental activities 15,146,184 Business -type activities: Sanitary sewer 2,683,502 Sanitation 313,134 Total business -type activities 2,996,636 Total primary government $ 18,142,820 Component unit - Waterloo Water Works $ 661,769 Component unit - Waterloo Convention & Visitors Bureau, Inc. $ 18,211 Note 7. Deferred Compensation Plans Deferred frozen sick leave payout: Retirees have the option of receiving their frozen sick leave (Note 8) payout immediately or receiving it as an annuity over 60 months. If the annuity option is selected, interest is paid to the retiree at the same rate as the City pays on the general obligation bonds last issued before the retirement date. During 2001, the City began offering an early sick leave payout option. Qualifying employees can elect to receive 60 percent of the balance in their frozen sick leave bank over a 52 -month period prior to their retirement or termination of employment. As of June 30, 2016, one employee was receiving payments, the remaining balance was $238 and is attributable to governmental activities. Deferred compensation is reported in business -type activities as accrued liabilities and in the governmental -type activities as a long-term liability. 50 Page 267 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 8. Compensated Absences City employees accumulate vacation and sick leave hours for subsequent use or for payment upon termination or retirement. A calendar year is primarily used for the calculation of vacation pay benefits while sick leave utilizes the City's fiscal year. Vacation days for most bargaining unit employees must be taken or paid during the calendar year with limited exceptions. Nonbargaining unit employees may carry forward up to 10 days vacation with proper approval. Upon termination, employees receive payment for unused vacation plus a payment for vacation hours accrued from January through the termination date. As of June 30, 2016, there was $2,927,560 accrued for vacation. Prior to July 1, 1984, sick leave was allowed to accumulate to a maximum of 240 days, except for police and fire personnel who could accumulate a maximum of 260 days. Any unused days as of July 1, 1984 were accumulated into a frozen sick leave bank. The days frozen in the bank are paid upon use, termination or retirement (except for library employees who will only be paid upon use). If paid upon retirement, the amount due to employees is computed as the amount equal to 60 percent of the total accumulated hours times the employee's current pay rate paid to employees. Retirees have the option of receiving the payout immediately or receiving it as an annuity over 60 months. As discussed in Note 7, active employees could elect to receive a payout of 60 percent of their frozen sick dollars beginning in July 2001. As of June 30, 2016, there was $137,111 accrued for the frozen sick leave bank. After July 1, 1984, sick leave is allowed to accumulate up to 12 days per year. At the end of the year, 25 percent of any unused sick leave is payable to the employee as a bonus and the balance of 75 percent of the unused sick leave is added to the employee's sick leave storage bank for future use. The days accumulated in the bank after July 1, 1984 are not payable upon termination or retirement. Certain Fire Department employees are eligible to receive pay -outs of 75 percent of their unused sick leave, with the balance of 25 percent of their unused leave added to their sick leave storage bank. As of June 30, 2016, $60,191, equivalent to 25 percent of unused sick leave subject to payout, has been accrued. Certain employees can elect either to be paid overtime compensation or to accrue the hours as compensatory time, defined as additional time off from regular hours. Employees are required to be paid for these services upon termination of employment. Maximum hours eligible to be used later as compensatory time are limited by law and labor contracts. Governmental funds do not recognize these accumulations as expenditures until paid. As of June 30, 2016, there was $1,460,437 accrued for unused compensatory time, which includes unused sick leave and frozen sick leave bank. Employees are also eligible to receive pay -outs of a portion of unused casual leave. The City accrued a total of $53,810 for unused casual leave earned during the fiscal year ended June 30, 2016. The sick leave bonus and accrued casual pay are reported as compensated absences in the applicable fund which includes $206,657 in governmental funds, as the liabilities are considered matured and are expected to be liquidated with expendable available financial resources. Frozen sick leave, vacation pay and compensatory time liabilities are accrued when incurred in the government -wide and proprietary fund statements and reported as a liability. 51 Page 268 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 9. Long -Term Liabilities The following is a summary of the changes in long-term liabilities for the year ended June 30, 2016: Increases Decreases and Due Within June 30, 2015 and Issues Retirements June 30, 2016 One Year Governmental activities: General obligation bonds $ 67,066,200 $ 19,140,000 $ 11,089,000 $ 75,117,200 $ 9,553,200 Loans and notes 2,061,316 98,250 225,503 1,934,063 189,046 Deferred compensation 6,441 6,203 238 238 Compensated absences 4,035,007 3,648,910 3,436,651 4,247,266 2,732,085 Net pension liability - IPERS 7,631,561 2,022,340 - 9,653,901 - Net pension liability - MFPRSI 26,777,406 9,631,437 - 36,408,843 - Subtotal 107,577,931 34,540,937 14,757,357 127,361,511 12,474,569 Unamortized discounts (132,062) (61,455) (18,603) (174,914) - Bond premium 898,973 169,261 112,801 955,433 - Total long-term liabilities, governmental activities $ 108, 344, 842 $ 34, 648, 743 $ 14, 851, 555 $ 128,142, 030 $ 12, 474, 569 Business -type activities: General obligation bonds $ 25,673,800 $ 525,000 $ 3,136,000 $ 23,062,800 $ 2,501,800 Revenue bonds 715,000 575,000 140,000 140,000 Compensated absences 294,799 386,225 333,636 347,388 258,803 Net pension liability 1,948,102 515,381 - 2,463,483 - Subtotal 28,631,701 1,426,606 4,044,636 26,013,671 2,900,603 Unamortized discounts (87,525) (8,304) (79,221) - Bond premium 222,357 14,677 19,185 217,849 - Total long-term liabilities, business - type activities $ 28,766,533 $ 1,441,283 $ 4,055,517 $ 26,152,299 $ 2,900,603 Compensated absences, deferred compensation and the net pension liability attributable to governmental activities are generally liquidated by the General Fund. The City issues bonds and notes primarily to provide funds for the acquisition and construction of major capital facilities. General obligation bonds and notes have been issued for governmental and business - type activities and to refund debt. Revenue bonds have been issued to fund the acquisition and construction of sanitary sewer facilities and to refund prior general obligation and revenue debt. General obligation bonds and notes are direct obligations and pledge the full faith and credit of the City. Revenue bonds are the obligations of the Sanitary Sewer Enterprise Fund and are generally payable solely from the revenue of the Sanitary Sewer Enterprise Fund. Bonds generally are issued as 15- to 20 - year serial bonds. 52 Page 269 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 9. Long -Term Liabilities (Continued) On June 29, 2016, the City issued $8,605,000 in tax-exempt General Obligation Bonds, Series 2016A maturing June 1, 2017 through June 1, 2031 with interest rates ranging from 2.00 percent to 2.25 percent. Of the total balance for the Series 2016A bonds, $2,385,000 currently refunded the balance of the 2008A general bond issue, of which $1,860,000 was for general purpose and $525,000 was for sewer purposes. The net change was a decrease in cash flows related to the current refunding of $223,863. The economic gain resulting from the current refunding was $210,951. On June 29, 2016, the City issued $1,810,000 in taxable General Obligation Bonds, Series 2016B maturing June 1, 2017 through June 1, 2031 with interest rates ranging from 0.80 percent to 3.10 percent. On June 29, 2016, the City issued $9,250,000 in taxable General Obligation Bonds, Series 2016C maturing June 1, 2017 through June 1, 2036 with interest rates ranging from 0.90 percent to 3.40 percent. Reasons for issuance for the Series 2016A and 2016B bonds were to finance a variety of capital improvements, including facility improvements, flood control and bridge improvements, street reconstruction, equipment and technology needs and vehicle acquisitions, as well as to pay the costs of issuance of the Bonds. The Series 2016C bonds were issued to provide an economic development grant for the Tech II building at the TechWorks campus. The City's outstanding general obligation long-term debt is as follows: Outstanding Issue Date Purpose Interest Rates June 30, 2016 June 2007 Taxable 5.400 - 5.600 $ 150,000 June 2008 Taxable 5.000 705,000 June 2009 Taxable 1.750 - 5.750 3,605,000 June 2010 Refunding 1.000 - 2.450 935,000 June 2010 Taxable 1.000 - 5.000 5,435,000 June 2011 Refunding 2.000 - 4.000 6,380,000 June 2011 Taxable 0.600 - 4.600 5,925,000 June 2012 Taxable 2.000 - 2.300 5,950,000 June 2012 Refunding 0.350 - 1.350 2,410,000 June 2012 Taxable 2.200 - 3.500 3,980,000 June 2013 Taxable 2.000 - 3.700 10,645,000 June 2013 Refunding 0.500 - 2.500 910,000 June 2014 Taxable 1.000 - 4.000 12,485,000 June 2014 Refunding 2.000 5,850,000 June 2015 Taxable 3.000 - 3.500 11,695,000 June 2015 Taxable 1.500 - 4.000 1,455,000 June 2016 Refunding 2.000 - 2.250 8,605,000 June 2016 Taxable 0.800 - 3.100 1,810,000 June 2016 Taxable 0.900 - 3.400 9,250,000 53 $ 98,180,000 Page 270 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 9. Long -Term Liabilities (Continued) Annual debt service on general obligation and revenue bonds as of June 30, 2016 are as follows: Year ending June 30: 2017 2018 2019 2020 2021 2022 - 2026 2027 - 2031 2032 - 2036 Year ending June 30: 2017 2018 2019 2020 2021 2022 - 2026 2027 - 2030 GO Debt Service General Obligation Bonds Principal Interest $ 9,553,200 8,568,000 7,676,000 6,210,000 5,313,000 22, 366, 000 12, 436, 000 2,995,000 $ 2,041,360 1,842,229 1,630,284 1,429,941 1,273,988 4,267,361 1,380,212 302,810 $ 75,117, 200 $ 14,168,185 Sanitary Sewer Enterprise General Obligation Bonds Sanitary Sewer Enterprise Revenue Bonds Principal Interest Principal Interest $ 2,501,800 2,492,000 2,464,000 2,005,000 1,957,000 8,834,000 2,809,000 $ 724,667 663,748 600,297 532,991 472,817 1,386,603 200,781 $ 140,000 $ 4,200 $ 23, 062, 800 $ 4,581,904 $ 140,000 $ 4,200 The City has pledged future sewer customer revenues, net of specified operating expenses, to repay $21,235,000 in sewer system revenue bonds issued August 2004 and $6,285,000 in sewer system refunding revenue bonds issued July 2011. Proceeds from the bonds issued August 2004 were used to construct improvements to the sewer plant. Proceeds from the bonds issued July 2011 were used to currently refund the 2004 bonds and pay costs of issuance on the 2011 bonds. The bonds are payable solely from sewer customer net revenues and are payable through 2017. Annual principal and interest payments on the bonds are expected to require less than 90 percent of net revenues in any one year of the life of the bond. The total principal and interest remaining to be paid on the bonds is $144,200. Principal and interest paid for the current year and total customer net revenues were $592,413 and $3,695,489, respectively. The resolutions providing for the issuance of revenue bonds include the following covenants: 1. The bonds will only be redeemed from the future earnings of the sewer system and the bondholders hold a lien on the future earnings. 2. Sufficient monthly transfers shall be made to the sewer revenue bond and interest sinking account for the purpose of making the bond principal and interest payments when due. 3. Monthly transfers will be made to establish a sewer revenue debt reserve fund. (The minimum required is currently $172,500). The amounts shall be used solely for the purpose of paying principal or interest on the bonds when insufficient money is available in the sinking fund. Whenever it shall become necessary to use the funds in the debt reserve fund, monthly payments shall be established to restore the funds used within a three-year period. 54 Page 271 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 9. Long -Term Liabilities (Continued) 4. Monthly transfers of $20,000 shall be made to the sewer improvement fund until the fund equals or exceeds $450,000. Amounts in the improvement fund not otherwise specially limited by provisions of the bond resolution shall first be used for the purpose of paying principal or interest on the bonds when there shall be insufficient money in the sinking fund and the reserve fund, to pay the cost of extraordinary maintenance or repairs, renewals and replacements not included in the annual budget of revenue and current expenses, payment of rentals on any part of the system or payments due for any property purchased as a part of the system and for capital improvements to the system. Whenever it becomes necessary to use the improvement fund, the monthly payments required shall be continued or resumed until the fund is restored to the required minimum balance. 5. The City will cause to be kept proper books and accounts adapted to the system and in accordance with accounting principles generally accepted in the United States of America, and will cause the books and accounts to be audited annually not later than 270 days after the end of each fiscal year by an independent auditor. 6. The City will faithfully and punctually perform all duties with reference to the Sewer Enterprise required by the Constitution and laws of the state of Iowa. 7. The City will establish rates to allow net revenue to meet or exceed 125 percent of debt service requirements for the year. For the year ended June 30, 2016, sewer net revenue was 497 percent of sewer revenue bond debt service. Loans and notes: The City, through its blended component unit, Waterloo Housing Authority, was indebted to the Federal Financing Bank (FFB) for $81,017 from the purchase of the Ridgeway Towers housing complex. The debt was paid off in November 2015. The United States Department of Housing and Urban Development pays interest and principal of $86,364, annually, directly to FFB. The City reports the payment transaction in the GO Debt Service Fund. During the years ended June 30, 2013 and 2011, the City had drawn $195,348 and $235,082, respectively, in loans from the Iowa Department of Economic Development, Brownfield Redevelopment Program (Department). The loans are at zero percent with no payments due in years one through five. The loan may be forgiven if planned increases in taxable valuation of property within the redevelopment area have been attained. Repayment of unforgiven loan is to be repaid in 10 equal semiannual payments as determined by the Department at a 6 percent interest rate. As of June 30, 2016, the unpaid principal was $255,430. The City has entered into development agreements including rebates of property taxes paid by other parties to the agreements. Most agreements include a set percentage of taxes paid for a specified number of years. Since payment years and amounts are unknown, they are not included in the schedule of maturities of debt. The following agreements require a guaranteed amount of principal plus interest to be paid to the developer. • Wilbert Burial Vault Co., $14,058 plus interest at 5 percent, compounded annually. The City was to pay all accrued interest by September 30, 2007 after which 90 percent of eligible property taxes will be rebated until interest and principal have been paid. • Young Development, Ltd., $20,796 plus interest at 5 percent, payable semiannually beginning November 2009 until paid in full from 100 percent of property tax payments, subject to annual appropriation. • Deer Creek Development, LLC, $1,643,599 plus interest at 7 percent through March 31, 2011 then at 4.750 percent, compounded semiannually. In fiscal year 2014, there were additions to the agreement of $6,130. Payable at $300,000 in fiscal year 2011 and semiannual payments of $100,000 are due beginning November 2011 until principal plus interest have been paid. 55 Page 272 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 9. Long -Term Liabilities (Continued) Other loans and notes: Other governmental activity loans and notes mature as follows: Governmental Activities Nonmajor Governmental Funds Principal Interest Year ending June 30: 2017 $ 189,046 $ 78,623 2018 182,499 70,600 2019 189,912 63,983 2020 193,658 57,428 2021 200,453 50,633 2022 - 2026 978,495 139,336 $ 1,934,063 $ 460,603 Discretely presented component unit: Balance Balance Due Within December 31, 2014 Additions Deletions December 31, 2015 One Year Capital loan notes $ 416,000 $ - $ 416,000 $ - $ Compensated absences 61,600 120,260 114,352 67,508 67,508 Total long-term debt $ 477,600 $ 120,260 $ 530,352 $ 67,508 $ 67,508 Debt indentures require that certain covenants relating to the maintenance and efficiency of the operating system, the rate structure, restrictions on borrowings, leasing or disposition of assets and minimum insurance coverage be adhered to. Note 10. Operating Leases Effective July 1, 1999, the City's sanitary sewer operations entered into a five-year agreement for the management of biosolid by-products produced at the Wastewater Treatment Facility. The agreement included the lease of a storage facility. This lease was extended August 1, 2014 for another five-year period, at a monthly rental of $4,900. Rental expense for all material operating leases was $114,500 for the year ended June 30, 2016. Cedar Valley SportsPlex: The Cedar Valley SportsPlex, a 125,000 square foot recreational facility that includes indoor soccer fields, gyms, a leisure pool, fitness facility, running track and multi-purpose activity spaces, opened in January 2014. The facility is a joint project of the City and the Waterloo Development Corporation. The Waterloo Development Corporation raised the funds, through a combination of private donations and grants from the Black Hawk County Gaming Association, to construct the $23 million facility. The City acquired the property where the facility is located and signed a lease purchase agreement to operate the facility for $100 per year. The lease purchase agreement gave the City the option to take ownership of the facility at the end of the lease term or to cease operating the facility at that time. In August 2014, the lease agreement was amended to remove that option, so the property will automatically transfer to the City at the end of the lease term. The Waterloo Development Corporation signed an agreement with the City which guarantees that the fundraising for construction will be completed. Because there was an automatic transfer of the assets at the end of the term of the agreement, and that future lease payments to the Waterloo Development Corporation are nominal, the City has no capital contribution to report for the year ended June 30, 2016, and no capital lease liability as of June 30, 2016. The Leisure Services department of the General Fund is operating the facility with a combination of existing and additional staff positions. The intent is for the facility to be self-supporting. 56 Page 273 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems Iowa Public Employees' Retirement System: Plan description: Employees of the City are provided with pensions through the Iowa Public Employees Retirement System (IPERS)—a cost-sharing multiple -employer defined benefit pension plan administered by the State of Iowa. (PERS provides retirement and death benefits which are established by State statute to plan members and beneficiaries. (PERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to (PERS, P.O. Box 9117, Des Moines, Iowa, 50306-9117. Benefits provided: (PERS provides retirement, disability and death benefits. Retirement benefits are determined based on the employee's highest five-year average salary and a multiplier based on the years of service. Employees are eligible for full retirement age 65; at age 62 with at least 20 years of covered employment or when the years of service plus the employee's age equals or exceeds 88. Four years of service is required for nonservice-related disability eligibility. Disability benefits are determined in the same manner as retirement benefits but are payable immediately without an actuarial reduction. Death benefits are calculated based on the actuarial present value of the employee's accrued benefit at the time of death or a calculation based on the employee's contributions, highest covered annual wage and years of service. Contributions: Per Iowa Code Section 97B.4(4)(d) the required contribution rate is determined by the (PERS actuary as the rate necessary to fully fund the benefits as defined by Iowa Code Chapter 97B. Employees are required to contribute 5.95 percent of their annual pay. The City contractually required contribution rate for the year ended June 30, 2016, was 8.93 percent of annual payroll, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the City were $1,564,955 for the year ended June 30, 2016. Pension Liabilities, Pension Expense, and Deferred Inflow and Outflows of Resources Related to Pensions At June 30, 2016, the City reported a liability of $12,117,384 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating governments, actuarially determined. At June 30, 2015, the City's proportion was 0.24526715 percent, an increase of 0.00371675 percent from the City's proportion at June 30, 2014. 57 Page 274 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) For the year ended June 30, 2016, the City recognized pension expense of $2,091,839. At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between City contributions and proportionate share of contributions Total deferred amounts to be recognized in pension expense in future periods Deferred Deferred Outflows of Inflows of Resources Resources $ 183,078 $ 333,622 1,813,001 (2,821,484) 309,084 (185,323) 2,638,785 (3,006,807) City contributions subsequent to the measurement date 1,564,955 Total deferred amounts related to pensions $ 4,203,740 $ (3,006,807) $1,564,955 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. The deferred outflows and deferred inflows resulting from the difference between projected and actual earnings on pension plan investments will be recognized as a reduction of pension expense over five years. The other deferred inflows and outflows will be recognized in pension expense using the average expected remaining service lives of all (PERS members. The average is determined by taking the calculated total future service years of the Plan divided by the number of the people in the Plan including retirees. Deferred outflows of resources and deferred inflows of resources will be recognized in pension expense as follows: Year ended June 30: 2017 $ (320,573) 2018 (320,573) 2019 (320,573) 2020 568,679 2021 25,018 $ (368,022) 58 Page 275 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00 percent Salary increases 4.00 to 17.00 percent, average, including inflation. Investment rate of return 7.50 percent, net of pension plan investment expense, including inflation Mortality rates were based on the RP -2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the four-year period ending June 30, 2014. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Long -Term Asset Expected Real Allocation Rate of Return U.S. equity 24% 6.29% Non U.S. equity 16 6.75 Private equity 11 11.32 Real estate 8 3.48 Core plus fixed income 28 2.04 Credit opportunities 5 3.63 TIPS 5 1.91 Other real assets 2 6.24 Cash 1 (0.71) 100% Discount rate: The discount rate used to measure the total pension liability was 7.50 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that contributions from cities will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 59 Page 276 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Sensitivity of the City's proportionate share of the net pension liability to changes in the discount rate: The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.50 percent, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (6.50 percent) or 1 - percentage -point higher (8.50 percent) than the current rate: 1% Decrease (6.50%) Discount Rate (7.50 %) 1% Increase (8.50 %) City's proportionate share of the net pension liability $ 21,215,359 $ 12,117,384 $ 4,438,040 Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued (PERS financial report; which can be located at www.ipers.orq. As of June 30, 2016 the City owed (PERS $57,123 for legally required employee contributions which had been withheld from employees but not yet remitted to (PERS. Municipal Fire and Police Retirement System of Iowa Plan description: MFPRSI membership is mandatory for fire fighters and police officers covered by the provisions of Chapter 411 of the Code of Iowa. Employees of the City are provided with pensions through a cost-sharing multiple employer defined benefit pension plan administered by MFPRSI. MFPRSI issues a stand-alone financial report which is available to the public by mail at 7155 Lake Drive, Suite #201, West Des Moines, Iowa 50266 or at www.mfprsi.org. MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. Pension benefits: Members with 4 or more years of service are entitled to pension benefits beginning at age 55. Full service retirement benefits are granted to members with 22 years of service, while partial benefits are available to those members with 4 to 22 years of service based on the ratio of years completed to years required (i.e., 22 years). Members with less than 4 years of service are entitled to a refund of their contribution only, with interest, for the period of employment. Benefits are calculated based upon the member's highest 3 years of compensation. The average of these 3 years becomes the member's average final compensation. The base benefit is 66 percent of the member's average final compensation. Additional benefits are available to members who perform more than 22 years of service (2 percent for each additional year of service, up to a maximum of 8 years). Survivor benefits are available to the beneficiary of a retired member according to the provisions of the benefit option chosen plus an additional benefit for each child. Survivor benefits are subject to a minimum benefit for those members who chose the basic benefit with a 50 percent surviving spouse benefit. Active members, at least 55 years of age, with 22 or more years of service have the option to participate in the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member who is otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a 3, 4, or 5 year DROP period. By electing to participate in DROP the member is signing a contract indicating the member will retire at the end of the selected DROP period. During the DROP period the member's retirement benefit is frozen and a DROP benefit is credited to a DROP account established for the member. Assuming the member completes the DROP period, the DROP benefit is equal to 52 percent of the member's retirement benefit at the member's earliest date eligible and 100 percent if the member delays enrollment for 24 months. At the member's actual date of retirement, the member's DROP account will be distributed to the member in the form of a lump sum or rollover to an eligible plan. 60 Page 277 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Disability and death benefits: Disability coverage is broken down into two types, accidental and ordinary. Accidental disability is defined as permanent disability incurred in the line of duty, with benefits equivalent to the greater of 60 percent of the member's average final compensation or the member's service retirement benefit calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the greater of 50 percent of the member's average final compensation, for those with 5 or more years of service, or the member's service retirement benefit calculation amount, and 25 percent of average final compensation for those with less than 5 years of service. Death benefits are similar to disability benefits. Benefits for accidental death are 50 percent of the average final compensation of the member plus an additional amount for each child, or the provisions for ordinary death. Ordinary death benefits consist of a pension equal to 40 percent of the average final compensation of the member plus an additional amount for each child, or a lump -sum distribution to the designated beneficiary equal to 50 percent of the previous year's earnable compensation of the member or equal to the amount of the member's total contributions plus interest. Benefits are increased (escalated) annually in accordance with Chapter 411.6 of the Code of Iowa which states a standard formula for the increases. The surviving spouse or dependents of an active member who dies due to a traumatic personal injury incurred in the line of duty receives a $100,000 lump -sum payment. Contributions: Member contribution rates are set by state statute. In accordance with Chapter 411 of the Code of Iowa as modified by act of the 1994 General Assembly, to establish compliance with the Federal Older Workers Benefit Protections Act, the contribution rate was 9.4 percent of earnable compensation for the year ended June 30, 2016. Employer contribution rates are based upon an actuarially determined normal contribution rate and set by state statute. The required actuarially determined contributions are calculated on the basis of the entry age normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of Iowa. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, with such total divided by 1 percent of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions and state appropriations. Under the Code of Iowa the employer's contribution rate cannot be less than 17 percent of earnable compensation. The City's contribution rate was 30.41 percent for the year ended June 30, 2016. The City's contributions to MFPRSI for the year ended June 30, 2016 were $4,280,766. If approved by the state legislature, state appropriation may further reduce the employer's contribution rate, but not below the minimum statutory contribution rate of 17 percent of earnable compensation. The State of Iowa therefore is considered to be a nonemployer contributing entity in accordance with the provisions of the Governmental Accounting Standards Board Statement No. 67 — Financial Reporting for Pension Plans, (GASB 67). There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2015. 61 Page 278 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Net Pension Liabilities, Pension Expense, and Deferred Inflows and Outflows of Resources Related to Pensions: At June 30, 2016, the City reported a liability of $36,408,843 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's share of contributions to the pension plan relative to the contributions of all MFPRSI participating employers. At June 30, 2015, the City's proportion was 5.724535 percent, an increase of 0.004015 percent from the City's proportion at June 30, 2014. For the year ended June 30, 2016, the City recognized pension expense of $2,684,148. At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between City contributions and proportionate share of contributions Total deferred amounts to be recognized in pension expense in future periods Deferred Deferred Outflows of Inflows of Resources Resources $ 5,270,594 $ (45,962) 2,023,610 (7,315,974) 16,723 (347,405) 7,310,927 (7,709,341) City contributions subsequent to the measurement date 4,280,766 Total deferred amounts related to pensions $ 11,591,693 $ (7,709,341) $4,280,766 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. The deferred outflows and deferred inflows resulting from the difference between projected and actual earnings on pension plan investments will be recognized as a reduction of pension expense over five years. The other deferred inflows and outflows will be recognized in pension expense using the average expected remaining service lives of all MFPRSI members. The average is determined by taking the calculated total future service years of the Plan divided by the number of the people in the Plan including retirees. Deferred outflows of resources and deferred inflows of resources will be recognized in pension expense as follows: Year ended June 30: 2017 $ (737,818) 2018 (737,818) 2019 (737,818) 2020 1,611,177 2021 203,863 $ (398,414) 62 Page 279 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Actuarial Assumptions: The total pension liability in the June 30, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00 percent Salary increases 4.00 to 15.11 percent, average, including inflation. Investment rate of return 7.50 percent, net of pension plan investment expense, including inflation The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period from July 1, 2002 to June 30, 2012. There were no significant changes of benefit terms. Mortality rates used by the plan were based weighting equal to 1/12 of the 1971 GAM table and 11/12 of the 1994 GAM table with no projection of future mortality improvement. The one additional step results in a weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994 Group Annuity Mortality Table. The City updated the mortality rates to the RP -2000 Blue Collar mortality with a projected mortality improvement using Scale BB -2D. As a result, the City increased its net pension obligation by approximately $10 million as of June 30, 2016. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates (i.e., expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Long -Term Asset Expected Real Allocation Rate of Return Core plus fixed income Emerging markets debt Domestic equities Master limited partnerships International equities Tactical asset allocation Private equity Private non-core real estate Private core real estate 7.0% 3.0 12.5 5.0 12.5 35.0 15.0 5.0 5.0 100% 3.80% 6.50 6.00 8.50 7.00 6.00 9.80 9.30 6.80 Discount rate: The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions will be made at 9.40 percent of covered payroll and the City contributions will be made at rates equal to the difference between actuarially determined rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 63 Page 280 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Sensitivity of City's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.50 percent, as well as what the city's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percent lower (6.50 percent) or 1 -percent higher (8.5 percent) than the current rate. 1% Decrease (6.50%) Discount Rate (7.50 %) 1% Increase (8.50 %) City's proportionate share of the net pension liability $ 57,534,391 $ 36,408,843 $ 18,855,985 As of June 30, 2016 the City owed MFPRSI $152,299 for legally required employee contributions that had been withheld from employee wages but not yet remitted to MFPRSI. Component Unit The Water Works contributes to the Waterloo Water Works Pension Plan (WWW Plan) and the Iowa Public Employees' Retirement System (IPERS). Waterloo Water Works Pension Plan: Plan description: The Waterloo Water Works Pension Plan is a single -employer defined benefit plan administered by the Pension Committee of Waterloo Water Works. The WWW Plan provides retirement benefits to plan members and beneficiaries. Cost -of -living adjustments are provided to members and beneficiaries at the discretion of the Committee. The WWW Plan does not issue a stand-alone financial report. The actuarial report on the WWW Plan is held at the Water Works' office. Benefits provided: The WWW Plan provides retirement benefits to plan members and their beneficiaries. Retirement benefits are calculated using the highest three consecutive years of pensionable earnings during the last ten years of employment. The accrued benefit is determined to be 60 percent of average compensation, reduced if years of service is less than thirty years. Normal retirement age is 65. Married members may receive a benefit for life; however, members are required by law to receive a reduced qualified joint and survivor benefit, unless formally elected otherwise. In no event shall pensionable earnings exceed the limitation specified in Section 401(a)(17) of the Internal Revenue Code. As of December 31, the following employees were covered by the WWW Plan: Inactive plan members and beneficiaries currently receiving benefits 32 Inactive plan members entitled to but not yet receiving benefits 4 Active plan members 17 Total members 53 64 Page 281 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Contributions: The contribution requirements of the Plan members (employees) and the Water Works are established and may be amended by the Water Works. Mandatory contributions to the plan are equal to the (PERS rate effective January 1 of the previous year. Prior to 2010, plan members contributions were not required and the Water Works made all the required contributions. Beginning January 1, 2010, plan members were required to contribute one-third of the full contribution rate of 4.1 percent and the Water Works paid the rest of the required contribution. As of January 1, 2011, plan members were required to contribute two-thirds of the full contribution rate of 4 .3 percent and beginning January 1, 2012, plan members were required to contribute all of the mandatory contributions. The vesting period also changed from 12 years to 4 years as of January 1, 2010. Net pension liability: The Water Works' net pension liability was measured as of December 31, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The total pension liability in the December 31, 2015 was determined using the following actuarial assumptions, applied to all periods included in the measurement: Rate of inflation 2.50% per annum Rates of salary increases 3.00% per annun Long-term investment rate of return 8.00%, compounded annually, net of investment expenses. The actuarial assumptions used in the December 31, 2015 valuation were based on the results of an actuarial experience study for the period January 1, 2015 through December 31, 2015. In addition, mortality rates were based on 2016 IRS Combined Mortality Table as appropriate. The long-term expected rate of return on WWW Plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the WWW Plan's target asset allocation as of December 31, 2015 are summarized in the following table: Long -Term Target Expected Real Allocation Rate of Return Asset Class: Cash and fixed income 7% 2.50% Equity large cap 60 5.50 Equity mid cap 20 6.00 Equity small cap 11 6.00 Real estate 2 5.00 Cash and fixed income Total 100% 65 Page 282 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Discount rate: The discount rate used to measure the total pension liability was 8.00 percent. The projection of cash flows used to determine the discount rate assumed that WWW Plan member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the differences between actuarially determined contribution rates and the member rate. Based on those assumptions the WWW Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit. Changes in Water Works' net pension liability: Changes in the Water Works' net pension liability for the year ended December 31, 2015 were as follows: Total Plan Net Pension Fiduciary Net Pension Liability Position Liability Balance, beginning of year $ 7,800,622 $ 5,241,322 $ 2,559,300 Changes for the year: Service cost 53,008 53,008 Interest 607,558 607,558 Difference between expected and actual experience (28,037) (28,037) Changes in assumptions 12,600 12,600 Contributions, employer 481,000 (481,000) Contributions, member 59,043 (59,043) Contributions, nonemployer contributing member Net investment income (157,692) 157,692 Benefit payments including refunds of - employee contributions (518,306) (518,306) Administrative expense - - Balance, end of year $ 7,927,445 $ 5,105,367 $ 2,822,078 Sensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability calculated using the discount rate of 8.00 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percent lower, or 1 percent higher than the current rate: 1% Discount 1% Decrease Rate Increase 7.00% 8.00% 9.00% Net pension liability $ 3,543,475 $ 2,822,078 $ 2,160,852 66 Page 283 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Net pension liabilities, pension expense and deferred outflows of resources and deferred inflows of resources related to pensions: At December 31, 2015, the Water Works' recognized pension expense of $291,775. At December 31, 2015, the Water Works' reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual experience $ - $ 18,691 Changes in assumptions 8,400 Net difference between projected and actual earnings on pension plan investments 462,294 $ 470,694 $ 18,691 Amounts reported as deferred outflows of resources and deferred inflows or resources will be recognized in pension expense as follows: Pension Expense Amount Year ending December 31: 2017 $ 110,428 2018 110,428 2019 115,573 2020 115,574 Total $ 452,003 IPERS — Waterloo Water Works: In 2015, pursuant to the required rate, Regular members contributed 5.95 percent of covered payroll and the Water Works contributed 8.93 percent of covered payroll for a total rate of 14.88 percent. The Water Works' Contributions to (PERS for the year ended December 31, 2015 were $90,911. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions: At December 31, 2015, the Water Works' liability for its proportionate share of the net pension liability totaled $706,956. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Water Works' proportion of the net pension liability was based on the Water Works' share of contributions to the pension plan relative to the contributions of all (PERS participating employers. At June 30, 2015, the Water Works' collective proportion was .014220 percent, which was an increase of .001423 percent from its proportion measured as of June 30, 2014. 67 Page 284 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) For the year ended December 31, 2015, the Water Works recognized pension expense of $90,305. At December 31, 2015, the Water Works reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between Water Works contributions and proportionate share of contributions Total deferred amounts to be recognized in pension expense in future periods Deferred Deferred Outflows of Inflows of Resources Resources $ 10,681 $ 19,464 (58,837) 113,377 143,522 (58,837) Water Works contributions subsequent to the measurement date 55,000 Total deferred amounts related to pensions $ 198,522 $ (58,837) $55,000 reported as deferred outflows of resources related to pensions resulting from the Water Works contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2015. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2017 $ 11,037 2018 11,037 2019 11,037 2020 47,839 2021 3,735 $ 84,685 There were no non -employer contributing entities at (PERS. Actuarial Assumptions: The total pension liability in the June 30, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurements: Inflation 3.00 percent Salary increases 4.00 to 17.00 percent, average, including inflation. Investment rate of return 7.50 percent, net of pension plan investment expense, including inflation The actuarial assumptions used in the June 30, 2015 valuation were based on the results of actuarial experience. Study for the period from July 1, 2002 to June 30, 2012. There were no significant changes to benefit terms. Mortality rates were based on the RP -2000 Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. 68 Page 285 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Long -Term Asset Expected Real Allocation Rate of Return U.S. equity 24% 6.29% Non U.S. equity 16 6.75 Private equity 11 11.32 Real estate 8 3.48 Core plus fixed income 28 2.04 Credit opportunities 5 3.63 TIPS 5 1.91 Other real assets 2 6.24 Cash 1 (0.71) 100% Discount Rate: The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the contractually required rate and that contributions from the Water Works will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Water Works' Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the Water Works' proportionate share of the net pension liability calculated using the discount rate of 7.5 percent, as well as what the Water Works' proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percent lower (6.5 percent) or 1 percent higher (8.5 percent) than the current rate. Water Work's proportionate share of the net pension liability 1% Decrease (6.50%) Discount Rate (7.50%) 1% Increase (8.50%) $ 1,237,753 $ 706,954 $ 258,925 Payables to the Pension Plan: At December 31, 2015, the Water Works reported payables to the defined benefit pension plan of $7,043 for legally required employee contributions which had been withheld from employee wages but not yet remitted to (PERS. 69 Page 286 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 12. Deficit Fund Balances Funds with deficit balances as of June 30, 2016 were as follows: Non major governmental: Special revenue: Community Development Block Grant $ 215,967 Grants 1,882,864 Federal Aviation Agency Projects 380,200 Capital projects, Capital Improvements 1,815,963 The deficit of the above funds are expected to be eliminated through future transfers from other funds, grant proceeds or bond proceeds. Note 13. Commitments Construction: The City is involved in construction of capital assets, mainly streets, riverfront improvements and Brownfields reconstruction. Much of the construction is partially funded through federal, state and local grants and donations. City participation in the programs is generally funded through proceeds of debt issues, local option taxes and distributions from the Black Hawk County Solid Waste Management Commission. As of June 30, 2016, the City was committed to approximately $12.5 million of construction contracts. Property tax rebates: The City has entered into a number of development agreements with various businesses located in City tax increment financing districts. The agreements offer rebates of portions of taxes paid for up to 10 years, depending on each individual agreement. The amount of the rebates are a percentage of the actual taxes paid by the business. Rebates are reported at the time property taxes are received. See Note 9 for additional information. Loan guarantee: The City has guaranteed a bank loan of Cedar Skyline Corporation d/b/a Main Street Waterloo, a not-for-profit corporation. Main Street Waterloo and the City are not part of the same reporting entity. In 1999, Main Street Waterloo entered into a loan agreement with a financial institution, which was amended in 2006, 2010 and 2016. The note matures monthly through August 17, 2020. When the loan was entered into, the City voted to extend a nonexchange financial guarantee on the Main Street Waterloo loan. In the event that Main Street Waterloo is unable to repay the loan, the City would be required to make the payment, with no requirements for Main Street Waterloo to repay the City if the City has to pay any amount on the loan. As of June 30, 2016, the loan balance was $211,676. Based on City management's assessment of the qualitative factors and historical data, the City has not recorded a liability for this nonexchange financial guarantee. Note 14. Other Postemployment Benefits Plan description: The City sponsors a single -employer health care plan that provides self-insured medical, prescription drug, dental and vision benefits to all active and retired employees and their eligible dependents. As required by state law, employees who retire from service with the City prior to age 65 are eligible for coverage in the plan. Police and fire employees must have completed four years of service, be age 55 and vested in the Municipal Fire and Police Retirement System. All other employees must have completed four years of service (seven years of service after July 1, 2012), be age 55 and be vested in (PERS to participate in the plan. Retirees are allowed to be covered by the plan until they are Medicare eligible at age 65. Spouses of retirees are eligible to be covered on the plan for an additional eight years or until they reach age 65, whichever is sooner. Other dependents are allowed to be covered under the plan while an eligible dependent. The plan does not issue a stand-alone financial report. 70 Page 287 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 14. Other Postemployment Benefits (Continued) Funding policy: Management develops the health insurance plan contributions based on expected claims. The current funding policy of the City is to pay health claims as they occur. Retirees are responsible for the portion of premium rates not covered by the City. The required contribution is based on projected pay-as-you-go financing. For fiscal year 2016, the City contributed $1,429,058. Retiree and active members receiving benefits have required contributions of $623 per month for single health coverage and $1,576 for family coverage. Annual OPEB cost and net OPEB obligation: The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance to the parameters for GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The following table shows the components of the City's annual OPEB cost for the year, the amount actuarially contributed to the plan and changes in the City's annual OPEB obligation: Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost (expense) Contributions and payments made Increase in net OPEB obligation Net OPEB obligation - July 1, 2015 Net OPEB obligation - June 30, 2016 $ 1,655,000 198,000 (272,412) 1,580,588 1,429,058 151,530 4,957,430 $ 5,108,960 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligations for 2016 and the two preceding years follows. OPEB liability attributable to governmental activities are generally liquated by the General fund. Fiscal Year Ended June 30, 2014 June 30, 2015 June 30, 2016 Annual OPEB Cost Percentage of Annual OPEB Cost Contributed Net OPEB Obligation $ 1,723,884 1,712,953 1,580,588 93.21% 92.97 90.41 $ 4,837,000 4,957,430 5,108,960 Funded status and funding progress: As of July 1, 2015, the most recent valuation date, the plan was zero percent funded. The actuarial accrued liability for benefits was $20,596,000 and the actuarial value of assets is none resulting in an unfunded actuarial accrued liability (UAAL) of $20,596,000. The covered payroll (annual payroll of active employees covered by the plan) was $33,862,392 and the ratio of the UAAL to the covered payroll was 60.8 percent. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care cost trend. Amounts determined regarding the funded status of the plan and annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 71 Page 288 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 14. Other Postemployment Benefits (Continued) Actuarial methods and assumptions: Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and included in the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2015 actuarial valuation, projected unit credit method was used. The actuarial assumptions included a 4.0 percent annual discount rate, a healthcare cost trend rate of 8.0 percent on a select basis reducing 0.5 percent each year until reaching the ultimate trend rate of 4.5 percent, an annual salary increase of 3.5 percent, and an inflation rate of 3.5 percent. The UAAL is being amortized as a level percentage of salary on an open basis. The amortization of UAAL is over a period of 20 years for the explicit portion of the subsidy and a period of 30 years for the implicit portion of the subsidy. Note 15. Employee Health Care Plan The City provides health care, including dental, vision and prescription coverages, to its employees and certain former employees through a self-funded health insurance plan. Administration is provided by contracted providers. The City accounts for the plan in the General Fund, City Clerk and Finance Department, Health/Life Insurance Activity. Other funds, departments and activities are assessed for costs based on current and former employees within the activity. General Fund costs of these activities are funded by an employee benefits levy in the Trust and Agency Fund. The City is allowed to levy amounts needed to provide benefits. The City purchases stop -loss insurance, $100,000 specific and 125 percent aggregate of expected claims. The City's estimated unpaid claims as of June 30 and its needed reserves for claim fluctuation were determined by an actuarial study performed as of June 30. All outstanding claims are considered matured and expected to be paid in fiscal year 2015, with current available financial resources, and accordingly, a liability payable from restricted resources is reported within the General Fund. Changes and balances are as follows: Estimated unpaid claims, beginning of year Estimated claims incurred Claims payments Estimated unpaid claims, end of year 72 2016 2015 $ 1,012,196 $ 978,898 8,894,980 8,934,148 (8,789,703) (8,900,850) $ 1,117,473 $ 1,012,196 Page 289 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 16. Worker's Compensation Plan The City provides worker's compensation benefits through a self-funded plan. Administration is provided by a contracted provider. The City accounts for the plan in the General Fund, City Clerk and Finance Department, Self -Funded Worker's Compensation Activity. Costs are funded by an employee benefits levy in the Trust and Agency Fund. The City is allowed to levy amounts needed to provide benefits. The City's estimated unpaid claims as of June 30 are based on projected costs of future payments for injuries incurred prior to June 30, 2016, and is recorded as a liability in the government -wide statement of net position. $46,581 is considered matured and is recorded in the General Fund and governmental activities with accrued liabilities. Changes and balances are as follows: 2016 2015 Estimated unpaid claims, beginning of year $ 399,777 $ 401,986 Estimated claims incurred 600,529 659,700 Claims payments (506,225) (661,909) Estimated unpaid claims, end of year $ 494,081 $ 399,777 Note 17. Joint Ventures and Jointly Governed Organizations The City is a participating member of several organizations including the Black Hawk County Criminal Justice Information System (CJIS), the Consolidated Dispatch Center (Center), the Black Hawk County Solid Waste Management Commission (SWMC) and the Metropolitan Transit Authority (MET). In addition, the City pays its share of costs for CJIS, including debt service, pays its share of costs of the Center, pays landfill fees to SWMC and levies and collects property taxes from Black Hawk County and remits them to MET ($1,484,049 during the year ended June 30, 2016). Also, during the year ended June 30, 2016, the Sanitation Fund received an operating grant of $273,624 from SWMC. This grant was used to offset recycling costs. The Center's financial information is reported within the Black Hawk County annual financial report. CJIS, SWMC and MET issue their own annual reports. Reports are available on the Iowa Auditor of State's website http://auditor.iowa.gov/reports. The City has no equity position in any of the organizations. Note 18. Industrial Development Revenue Bonds The City has issued a total of $160,401,000 of industrial development revenue bonds under the provisions of Chapter 419 of the Code of Iowa. The amount outstanding as of June 30, 2015 is not reported to the City by either the debtors or creditors. Therefore, outstanding balances are unknown. The bonds and related interest are payable solely from revenue of applicable projects. Bond principal and interest do not constitute liabilities of the City. 73 Page 290 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 19. Risk Management The City is exposed to various risks of loss related to torts; theft, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by the purchase of commercial insurance and self-funded worker's compensation. Settled claims from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. The City assumes the risks of loss of both mobile vehicles and equipment, except for certain pieces of equipment, such are fire and forestry equipment, with large per-unit costs which are insured against loss subject to deductibles. As of June 30, 2016, the City has assigned $3,430,545 of its General Fund, fund balance for insurable risks retained. Note 20. Fund Balances GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental fund types. The details for the City's fund balances are as follows: Tax General Trust and Increment Obligation June 2016 Nonmajor Fund balances: General Agency Financing Debt Service GO Bonds Governmental Total Nonspendable: Inventories $ 197,040 $ - $ - $ - $ - $ 280,829 $ 477,869 Prepaids 70,373 - - - - 9,288 79,661 Total nonspendable 267,413 - - - - 290,117 557,530 Restricted: Debt service - - 1,969,208 733,229 - - 2,702,437 Self-funded health insurance 8,359,173 1,844,107 - - - - 10,203,280 Tourism promotion 1,162,298 - - - - - 1,162,298 Public access television 127,615 - - - - - 127,615 Civil rights enforcement 61,014 - - - - - 61,014 Housing 63,312 - - - - 4,279,386 4,342,698 Donor specified 617,022 - - - - - 617,022 Employee benefits - 258,443 - - - - 258,443 Library - - - - - 149,585 149,585 Street and right-of-way maintenance - - - - - 6,577,194 6,577,194 Improvements - - - - 17,231,233 14,631,507 31,862,740 Total restricted 10,390,434 2,102,550 1,969,208 733,229 17,231,233 25,637,672 58,064,326 Assigned: Insurance 3,430,545 - - - - - 3,430,545 Other postemploy- ment benefits 1,040,792 - - - - - 1,040,792 Improvements - - - - - 1,872,611 1,872,611 Other 35,696 - 470,932 - - 81,058 587,686 Use of fund balance for future budget 500,000 - - - - - 500,000 Total assigned 5,007,033 - 470,932 - - 1,953,669 7,431,634 Unassigned 9,836,132 - - - - (4,495,025) 5,341,107 Total fund balances $ 25,501,012 $ 2,102,550 $ 2,440,140 $ 733,229 $ 17,231,233 $ 23,386,433 $ 71,394,597 74 Page 291 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 21. New GASB Statements and Pending Pronouncements The GASB has issued several statements not yet implemented by the City. The statements which might impact the City are as follows: GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, issued in June 2015, will be effective for the City beginning with its fiscal year ending June 30, 2018. The Statement replaces the requirements of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions and requires governments to report a liability on the face of the financial statements for the OPEB they provide and outlines the reporting requirements by governments for defined benefit OPEB plans administered through a trust, cost-sharing OPEB plans administered through a trust and OPEB not provided through a trust. The Statement also requires governments to present more extensive note disclosures and required supplementary information about their OPEB liabilities. Some governments are legally responsible to make contributions directly to an OPEB plan or make benefit payments directly as OPEB comes due for employees of other governments. In certain circumstances, called special funding situations, the Statement requires these governments to recognize in their financial statements a share of the other government's net OPEB liability. GASB Statement No. 77, Tax Abatement Disclosures, issued August 2015, will be effective for the City beginning with its fiscal year ending June 30, 2017. This statement requires governments to disclose information about their own tax abatements separately from information about tax abatements that are entered into by other governments and reduce the reporting government's tax revenues. The disclosures about the government's own tax abatement agreements includes the purpose of the tax abatement program, the tax being abated, the amount of tax being abated, the provisions of recapturing abated taxes, the types of commitments made by tax abatement recipients, and other commitments made by government in tax abatement agreements. The disclosures about tax abatements that are entered into by other governments and reduce the reporting government's tax revenues includes the name of the government entering into the abatement agreement, the tax being abated, and the amount of the reporting government's tax being abated. GASB Statement No. 80, Blending Requirements for Certain Component Units, issued February 2016, will be effective for the City beginning with its fiscal year ending June 30, 2017. Statement No. 80 clarifies the display requirements in GASB Statement No. 14, The Financial Reporting Entity, by requiring component units incorporated as not-for-profit corporations to be blended into the primary state or local government's financial statements in a manner similar to a department or activity of the primary government. The guidance addresses diversity in practice regarding the presentation of not-for-profit corporations in which the primary government is the sole corporate member. The additional criterion does not apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are Component Units. GASB Statement No. 82, Pension Issues, issued April 2016, will be effective for the City beginning with its fiscal year ending June 30, 2017. Statement No. 82 is designed to improve consistency in the application of the pension standards by clarifying or amending related areas of existing guidance with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. Specifically, this Statement addresses issues regarding (1) the presentation of payroll -related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. 75 Page 292 of 405 City of Waterloo, Iowa Notes to Basic Financial Statements Note 21. New GASB Statements and Pending Pronouncements (Continued) GASB Statement No. 83, Certain Asset Retirement Obligations, issued December 2016, will be effective for the City beginning with its fiscal year ending June 30, 2019. Under Statement No. 83, a government that has legal obligations to perform future asset retirement activities related to its tangible capital assets is required to recognize a liability and a corresponding deferred outflow of resources. The guidance also identifies the circumstances that trigger recognition of these transactions. Statement No. 83 requires the measurement of an asset retirement obligation to be based on the best estimate of the current value of outlays expected to be incurred. The deferred outflow of resources associated with an asset retirement obligation will be measured at the amount of the corresponding liability upon initial measurement and generally recognized as an expense during the reporting periods that the asset provides service. Statement No. 83 also requires the disclosure of a general description of the asset retirement obligation and associated tangible capital assets; the source of the obligation to retire the assets; the methods and assumptions used to measure the liability; and other relevant information. The City's management has determined the implementation of GASB Statement No. 75 will have a significant impact on the City's financial statements but has not yet determined the effect of Statement Nos. 77, 80, 82 and 83. Note 22. Prior Period Adjustment During fiscal year ending December 31, 2015, the Waterloo Water Works adopted GASB Statements Nos. 68 and 71. As a result, the Water Works' net position as of December 31, 2014 has been restated to reflect the recognition of the Water Works' proportionate share of the Iowa Public Employees' Retirement System as well as the net pension liability of the Waterloo Water Works Pension Plan. The Water Works is part of the aggregate discretely presented component units opinion unit. Net position - December 31, 2014, as previously reported Cumulative effect of the application of GASB 68, net pension liability Cumulative effect of the application of GASB 71, deferred outflows of resources for the Water Works contributions made to the plan during the first half of the measurement period, from July 1, 2014 to December 31, 2014 Net position - December 31, 2014, as restated $ 31,580,863 (3,074,386) (52,094) $ 28,454,383 Note 23. Subsequent Event The City entered into a development agreement with North Crossing, LLC for the redevelopment of the former Logan Plaza Shopping Center site. The agreement requires new buildings with a minimum assessed value exceeding $9.5 million to be built on the site and also requires the developer to demolish the existing center. The City will pay property tax rebates of 50 percent of taxes paid for ten years. The agreement also includes provisions the City would purchase 50.84 acres of vacant land north of the shopping center, contingent upon the developer acquiring the property. The developer purchased the property in October 2016, committing the City to future payments of $1,000,000 annually with total payments due of $8,000,000. 76 Page 293 of 405 City of Waterloo, Iowa Required Supplementary Information Other Postemployment Benefit Plan SCHEDULE OF FUNDING PROGRESS Unfunded Actuarial (Over UAAL as a Actuarial Accrued funded) Percentage Fiscal Actuarial Value of Liability AAL Funded Covered of Covered Year Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll Ended Date (a) (b) (b -a) (a/b) (c) [(b-a)/c] 2014 7/1/13 $ $ 22,667,000 $ 22,667,000 - % $ 32,617,036 69.49% 2015 7/1/13 22,667,000 22,667,000 31,171,476 72.72 2016 7/1/15 20,596,000 20,596,000 33,862,392 60.82 The information presented in the required supplementary schedule was determined as part of the actuarial valuation date as of July 1, 2015. Additional information follows: a. The actuarial method used to determine the ARC is the projected unit credit method. b. There are no plan assets. c. The actuarial assumptions included: a) 4.0 percent annual discount rate, b) a healthcare cost trend rate of 8.0 percent initially, decreasing 0.5 percent each year until reaching the ultimate trend rate of 4.5 percent, c) an annual salary increase of 3.5 percent, and d) an inflation rate of 3.5 percent. d. The amortization method is level percentage of pay on an open basis over 30 years. 77 Page 294 of 405 City of Waterloo, Iowa Required Supplementary Information Schedule of the City's Proportionate Share of the Net Pension Liability Iowa Public Employees' Retirement System 2016 2015 City's proportion of the net pension liability 0.2452672% 0.2415504% City's proportionate share of the net pension liability $ 12,117,384 $ 9,579,663 City's covered -employee payroll $ 16,800,363 $ 15,816,626 City's proportionate share of the net pension liability as a percentage of its covered payroll 72.13% 60.57% Plan fiduciary net position as a percentage of the total pension liability 85.19% 87.61% Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. The amounts presented each year are as of the City's measurement date. See notes to required supplementary information. 78 Page 295 of 405 City of Waterloo, Iowa Required Supplementary Information Schedule of City Contributions Iowa Public Employees' Retirement System Statutorily Required Contribution Contributions in Relation to the Statutorily Required Contribution Contributions Deficiency (Excess) City's Covered - Employee Payroll Contributions as a Percentage of Covered Employee Payroll 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 N/A - information was not available $ 1,564,955 1,500, 510 1,420, 507 1,358, 920 1,250, 399 1,066, 879 991,202 923,462 843,709 743,851 $ 1,564,955 1,500,510 1,420,507 1,358,920 1,250,399 1,066,879 991,202 923,462 843,709 743,851 Note: The amounts reported in this schedule are as of the City's fiscal year-end. See notes to required supplementary information. 79 $ 17,523,333 8.93% 16,800,363 8.93 15,816,626 8.98 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Page 296 of 405 City of Waterloo, Iowa Notes to Required Supplementary Information — !PERS Pension Liability Year Ended June 30, 2016 Note 1. Changes of benefit terms Legislation passed in 2010 modified benefit terms for current Regular members. The definition of final average salary changed from the highest three to the highest five years of covered wages. The vesting requirement changed from four years of service to seven years. The early retirement reduction increased from 3 percent per year measured from the member's first unreduced retirement age to a 6 percent reduction for each year of retirement before age 65. In 2008, legislative action transferred four groups — emergency medical service providers, county jailers, county attorney investigators, and National Guard installation security officers — from Regular membership to the protection occupation group for future service only. Benefit provisions for sheriffs and deputies were changed in the 2004 legislative session. The eligibility for unreduced retirement benefits was lowered from age 55 by one year each July 1 (beginning in 2004) until it reached age 50 on July 1, 2008. The years of service requirement remained at 22 or more. Their contribution rates were also changed to be shared 50-50 by the employee and employer, instead of the previous 40-60 split. Note 2. Changes of assumptions The 2014 valuation implemented the following refinements as a result of a quadrennial experience study: • Decreased the inflation assumption from 3.25 percent to 3.00 percent • Decreased the assumed rate of interest on member accounts from 4.00 percent to 3.75 percent per year. • Adjusted male mortality rates for retirees in the Regular membership group. • Reduced retirement rates for sheriffs and deputies between the ages of 55 and 64. • Moved from an open 30 year amortization period to a closed 30 year amortization period for the UAL beginning June 30, 2014. Each year thereafter, changes in the UAL from plan experience will be amortized on a separate closed 20 -year period. 80 Page 297 of 405 City of Waterloo, Iowa Required Supplementary Information Schedule of the City's Proportionate Share of the Net Pension Liability Municipal Fire and Police Retirement System of Iowa 2016 2015 City's proportion of the net pension liability 5.724535% 5.720520% City's proportionate share of the net pension liability $ 36,408,843 $ 26,777,406 City's covered -employee payroll $ 15,012,366 $ 14,608,497 City's proportionate share of the net pension liability as a percentage of its covered payroll 242.53% 183.30% Plan fiduciary net position as a percentage of the total pension liability 83.04% 86.27% Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. The amounts presented each year are as of the City's measurement date. See notes to required supplementary information. 81 Page 298 of 405 City of Waterloo, Iowa Required Supplementary Information Schedule of City Contributions Municipal Fire and Police Retirement System of Iowa Statutorily Required Contribution Contributions in Relation to the Statutorily Required Contribution Contributions Deficiency (Excess) City's Cove red - Employee Payroll Contributions as a Percentage of Covered Employee Payroll 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 N/A - information was not available $ 4,280,766 4,565,261 4,418,650 3,844,363 3,522,615 2,731,277 2,249,021 2,417,019 3,074,329 3,319,634 $ 4,280,766 4,565,261 4,418,650 3,844,363 3,522,615 2,731,277 2,249,021 2,417,019 3,074,329 3,319,634 Note: The amounts reported in this schedule are as of the City's fiscal year-end. See notes to required supplementary information. 82 $ 15,365,321 27.86% - 15,012,366 30.41 - 14,608,497 30.25 - N/A N/A - N/A N/A - N/A N/A - N/A N/A - N/A N/A - N/A N/A - N/A N/A Page 299 of 405 City of Waterloo, Iowa Notes to Required Supplementary Information — MFPRSI Pension Liability Year Ended June 30, 2016 Note 1. Changes of Benefit Terms There were no significant changes of benefit terms. Note 2. Changes of Assumptions Effective July 1, 2015, an additional step was taken to phase in the 1994 Group Annuity Mortality Table for post-retirement mortality. The additional step results in a weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994 Group Annuity Mortality Table. The City also updated the mortality assumptions to the RP -2000 Blue Collar Mortality table with projected mortality improvement using scale BB -2D for the June 30, 2015 measurement date. 83 Page 300 of 405 City of Waterloo, Iowa Budgetary Comparison Schedule Budget and Actual (Modified Cash Basis) - All Governmental Funds and Proprietary Funds Required Supplementary Information Year Ended June 30, 2016 Budgeted Amounts Original Final Revenues and other financing sources receipts: Receipts: Property taxes $ 38,480,720 $ 38,480,720 Tax increment financing 7,405,250 7,405,250 Other City taxes 17,616,016 17,616,016 Licenses and permits 1,294,660 1,294,660 Use of money and property 1,401,166 1,401,166 Intergovernmental 26,300,597 32,762,217 Charges for services 25,193,701 25,713,557 Special assessments 229,000 229,000 Miscellaneous 5,424,543 6,723,813 Total receipts 123,345,653 131,626,399 Other financing sources: Transfer from other funds Issuance of long-term debt Proceeds from sale of capital assets Total other financing sources Total receipts and other financing sources 15, 709,178 33,250,000 1,765,000 20,284,128 35,665,000 1,771,000 50,724,178 57,720,128 174, 069, 831 189, 346, 527 Disbursements and other financing uses: Governmental -type activities: Public safety 31,758,785 32,156,867 Public works 27,973,803 28,351,514 Health and social services 385,056 430,451 Culture and recreation 10,746,594 11,186,873 Community and economic development 11,848,856 15,601,988 General government 6,444,562 6,860,534 Debt service 15,912,068 18,320,468 Capital projects 36,031,774 43,231,670 Business -type activities 22,975,038 23,606,638 Total disbursements 164,076,536 179,747,003 Other financing uses, transfers to other funds Total disbursements and other financing uses Receipts and other financing sources over (under) disbursements and other financing uses Balances, beginning of year Balances, end of year See note to required supplementary information. 84 15,709,178 20,284,128 179, 785, 714 200, 031,131 (5,715,883) (10,684,604) 80,880,177 83,025,994 $ 75,164,294 $ 72,341,390 Page 301 of 405 Variance Actual Amounts With Final Budgetary Basis Budget $ 39,712,931 $ 1,232,211 7,169,254 (235,996) 17,327,379 (288,637) 1,499,089 204,429 1,465,619 64,453 32,172,296 (589,921) 25, 993, 950 280,393 212,547 (16,453) 5,835,880 (887,933) 131,388,945 (237,454) 19, 370, 317 19, 665, 000 345,618 (913,811) (16,000,000) (1,425,382) 39,380,935 (18,339,193) 170,769,880 (18,576,647) 31,020,799 25, 919, 334 372,697 10, 523, 860 12, 797, 629 5,662,171 17, 051, 941 20, 464,192 22, 647, 250 1,136,068 2,432,180 57,754 663,013 2,804,359 1,198,363 1,268,527 22,767,478 959,388 146,459,873 33,287,130 - 20,284,128 146,459,873 53,571,258 24,310,007 34,994,611 83, 025, 994 $ 107,336,001 $ 34,994,611 85 Page 302 of 405 City of Waterloo, Iowa Note to Required Supplementary Information — Budgetary Reporting Year Ended June 30, 2016 In accordance with the Code of Iowa, the City Council annually adopts a budget on a modified cash basis following required public notice and hearing for all funds. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon 10 major classes of disbursements known as functions, not by fund or fund type. These 10 functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital projects, business -type and nonprogram. Although the budget document presents function disbursements by fund type, the legal level of control is at the aggregated function level, not at the fund or fund type level. During the year, a budget amendment was adopted which increased budgeted expenditures by $20,245,417. The budget amendment is reflected in the final budgeted amount. The City uses the same modified cash basis of accounting for budgetary reporting as is used for its internal financial records. Under this basis, cash transactions are modified by certain receivables and payables and by certain noncash revenue and expenditures. In addition, many transactions which should be recorded in and reported by the Sanitary Sewer Enterprise Fund are recorded in and reported by governmental funds. 86 Page 303 of 405 City of Waterloo, Iowa Schedule of Comparison Funds Statements (GAAP Basis) to Budgetary (Modified Cash) Basis Required Supplementary Information Year Ended June 30, 2016 Governmental Fund Types Basis Actual Amounts Enterprise Fund Types Basis Actual Amounts Total Funds Revenue/Receipts: Property taxes and TIF revenue Other taxes Licenses and permits Use of money and property Intergovernmental Charges for services Interfund charges for services Special assessments Miscellaneous Total revenuelreceipts Expenditures and expenses/disbursements: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Capital projects Business -type activities Total expenditures and expenses/ disbursements Net $ 46,259,411 $ 17,309,079 1,491,131 1,422,572 26, 670, 622 8,142, 707 1,935,000 138,434 2,032,729 49,277 275,516 17,863,122 1,231,677 $ 46, 259, 411 17,309,079 1,491,131 1,471,849 26, 946,138 26,005,829 1,935,000 138,434 3,264,406 105,401,685 19,419,592 124,821,277 31,380,988 26, 664, 570 375,769 10, 837, 983 13, 483, 447 5,671,640 13, 484, 500 12, 835, 209 17,835,099 31,380,988 26,664,570 375,769 10,837,983 13,483,447 5,671,640 13,484,500 12,835,209 17,835,099 114, 734,106 17,835,099 132,569,205 (9,332,421) 1,584,493 (7,747,928) (Continued) 87 Page 304 of 405 Property Tax Collected Budgetary for and Other GAAP Basis Remitted Conversion Budgetary Exceptions to MET Adjustments Basis - $ 1,484,049 $ (861,275) $ 46,882,185 - 18,300 17,327,379 - 7,958 1,499,089 - (6,230) 1,465,619 - 5,226,158 32,172,296 - (11,879) 25,993,950 - (1,935,000) - - 74,113 212,547 - 2,571,474 5,835,880 1,484,049 5,083,619 131,388,945 - (360,189) 31,020,799 - 1,484,049 (2,229,285) 25,919,334 - (3,072) 372,697 - (314,123) 10,523,860 - (685,818) 12,797,629 - (9,469) 5,662,171 - 3,567,441 17,051,941 - 7,628,983 20,464,192 - 4,812,151 22,647,250 1,484,049 12,406,619 146,459,873 (7,323,000) (15,070,928) 88 Page 305 of 405 City of Waterloo, Iowa Schedule of Comparison Funds Statements (GAAP Basis) to Budgetary (Modified Cash) Basis (Continued) Required Supplementary Information Year Ended June 30, 2016 Governmental Enterprise Fund Fund Types Basis Types Basis Actual Amounts Actual Amounts Total Funds Other financing sources (uses): Transfers in $ 14,882,427 $ - $ 14,882,427 Transfers out (14,882,427) - (14,882,427) Insurance proceeds 766,470 - 766,470 Bond discount (61,455) - (61,455) Bond premium 169,261 - 169,261 Proceeds from sales of capital assets 335,618 - 335,618 Issuance of long-term debt 19,140,000 - 19,140,000 Total other financing sources (uses) 20,349,894 - 20,349,894 Change in fund balancelnet position 11,017,473 1,584,493 12,601,966 Balance, beginning of year 60,377,124 90,636,095 151,013,219 Balance, end of year $ 71,394,597 $ 92,220,588 $ 163,615,185 89 Page 306 of 405 Property Tax Collected Budgetary for and Other GAAP Basis Remitted Conversion Budgetary Exceptions to MET Adjustments Basis - $ $ 4,487,890 $ 19,370,317 - 14,882,427 - - (766,470) - - 61,455 - - (169,261) - - 10,000 345,618 - 525,000 19,665,000 19,031,041 39,380,935 11,708,041 24,310,007 (67,987,225) 83,025,994 $ $ (56,279,184) $ 107,336,001 90 Page 307 of 405 City of Waterloo, Iowa Required Supplementary Information Schedule of Employer Contributions for Waterloo Water Works Pension Plan Last Nine Fiscal Years 2015 2014 2013 Actuarially determined contribution $ 475,911 $ 481,861 $ 480,199 Contributions in relation to actuarially determined contribution 540,043 570,419 538,658 Contribution deficiency (excess) (64,132) (88,558) (58,459) Covered payroll $ 1,045,603 $ 1,064,651 $ 1,100,185 Contributions as a percentage of covered payroll 51.6% 53.6% 49.0% Additional years will be added going forward as information becomes available. 91 Page 308 of 405 2012 2011 2010 2009 2008 2007 $ 423,689 $ 383,404 $ 357,677 $ 379,444 $ 281,460 $ 219,249 473,114 (49,425) 445,212 (61,808) 396,550 (38,873) 379,444 505,000 (223,540) 205,059 14,190 $ 1,105,893 $ 1,248,200 $ 1,306,209 $ 1,374,782 $ 1,356,797 $ 1,263,173 42.8% 35.7% 30.4% 27.6% 92 37.2% 16.2% Page 309 of 405 City of Waterloo, Iowa Required Supplementary Information Schedule of Changes in Net Pension Liability and Related Ratios for Waterloo Water Works Pension Plan Total pension liability Service cost $ 53,008 Interest 607,558 Difference between expected and actual experience (28,037) Changes in assumptions 12,600 Benefit payments including refunds (518,306) Change in total pension liability 126,823 Total pension liability, beginning of year 7,800,622 Total pension liability, end of year 7,927,445 Plan fiduciary net position Contributions, employer 481,000 Contributions, member 59,043 Contributions, nonemployer contributing member Net investment income (157,692) Benefit payments including refunds (518,306) Administrative expense - Change in plan fiduciary net position (135,955) Plan fiduciary net position, beginning of year 5,241,322 Plan fiduciary net position, end of year 5,105,367 Net pension liability, end of year $ 2,822,078 Plan fiduciary net position as a % of total pension liability 64.4% Covered payroll $ 1,045,603 Net pension liability as a % of covered payroll 269.9% Additional years will be added going forward as information becomes available. 93 Page 310 of 405 City of Waterloo, Iowa Notes to Required Supplementary Information for Waterloo Water Works Pension Plan For the Year Ended December 31, 2015 Note 1: Valuation Date: Actuarially determined contributions rates are calculated as of December 31 of the current fiscal year. Note 2: Methods and assumptions used to determine contribution rates Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Annual pay increases Investment rate of return Retirement age Mortality rates 94 Entry age cost method Level dollar 20 years Market value of assets 2.50% 3.00% 8.00% 100% at age 62 2016 IRS combined mortality Page 311 of 405 City of Waterloo, Iowa Required Supplementary Information (PERS Schedule of the Waterloo Water Works' Proportionate Share of the Net Pension Liability Measurement Date June 30, 2015 2014 Water Work's proportion of the net pension liability 0.014220% 0.012797% Water Work's total proportionate share of the net pension liability $ 706,956 $ 524,011 Water Work's covered -employee payroll $ 980,325 $ 864,591 Water Work's proportionate share of the net pension liability as a percentage of its covered -employee payroll 72% 61% (PERS' net position as a percentage of the total pension liability Additional years will be added going forward as information becomes available. 95 85.19% 87.61% Page 312 of 405 City of Waterloo, Iowa Required Supplementary Information (PERS Schedule of Waterloo Water Works Contributions 2015 2014 2013 Statutorily required contribution $ 90,911 $ 79,066 $ 70,659 Contributions in relation to the Statutorily required contribution (90,911) (79,066) (70,659) Contribution deficiency (excess) $ $ $ Water Work's covered -employee payroll $ 1,018,040 $ 885,398 $ 791,254 Contributions as a percentage of covered -employee payroll 8.93% 8.93% 8.93% Additional years will be added going forward as information becomes available. 96 Page 313 of 405 2012 2011 2010 $ 56,189 $ 43,676 $ 35,136 (56,189) (43,676) (35,136) $ $ $ $ 648,085 $ 541,214 $ 505,554 8.67% 8.07% 6.95% 97 Page 314 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances General Fund Year Ended June 30, 2016 Revenues: Property taxes $ 19,969,442 Other taxes 6,917,710 Licenses and permits 1,455,620 Investment income 80,633 Rent 976,204 Intergovernmental 1,040,156 Charges for services 7,824,098 Indirect allocations 1,885,000 Special assessments 138,434 Miscellaneous 1,454,500 Total revenues $ 41,741,797 Expenditures: Public safety function Mayor Black Hawk Emergency Management Agency Contractual services $ 165,487 Total activity and department 165,487 Police department Police operations Compensation and benefits 11,490,314 Contractual services 959,253 Commodities 228,113 Total activity 12,677,680 Police computer services Contractual services Commodities Total activity Police grants Compensation and benefits Contractual services Commodities Total activity 75,055 76,866 151,921 536,969 525 51,031 588,525 Law enforcement programs Compensation and benefits 58,614 Contractual services 149,882 Commodities 231,656 Capital outlay 11,177 Total activity 451,329 Tobacco grant Compensation and benefits Total activity (Continued) 98 2,384 2,384 Page 315 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2016 Expenditures (continued): Public safety function (continued) Police department (continued) Public safety administration Compensation and benefits $ 149,549 Contractual services 547 Total activity 150,096 Total department 14,021,935 Fire department Fire protection Compensation and benefits 8,297,795 Contractual services 450,276 Commodities 76,459 Total activity 8,824,530 Fire restricted programs Compensation and benefits 8,174 Commodities 959 Total activity 9,133 Fire ambulance services Compensation and benefits 1,667,242 Contractual services 179,881 Commodities 193,494 Total activity 2,040,617 Fire safety program Compensation and benefits 129,084 Contractual services 25,987 Commodities 1,600 Total activity 156,671 Fire Federal CDC Grant Compensation and benefits Contractual services Total activity Total department 40,890 8,843 49,733 11, 080,684 Traffic operations department Animal Control Compensation and benefits 145,950 Contractual services 65,710 Commodities 22,977 Total activity and department 234,637 Building inspection department Building and housing safety Compensation and benefits 1,117,930 Contractual services 59,356 Commodities 36,170 Total activity and department 1,213,456 (Continued) 99 Page 316 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2016 Expenditures: Public safety function (continued) Central garage department Fire - garage parts & service Compensation and benefits $ 84,991 Commodities 99,142 Total activity 184,133 Ambulance - garage parts & service Commodities Total activity Total department 37,852 37,852 221,985 Public safety function totals Current Compensation and benefits 23,729,886 Contractual services 2,140,802 Commodities 1,056,319 Subtotal 26, 927, 007 Capital outlay 11,177 Total public safety function $ 26,938,184 Public works function Clerk Parking administration Compensation and benefits 3,149 Contractual services 1,791 Commodities 28 Total activity 4,968 Sidewalk repair/construction Capital outlay Total activity Total department 214,948 214,948 219,916 Traffic operations Parking maintenance Compensation and benefits 39,475 Contractual services 1,141 Commodities 1,227 Total activity and department 41,843 Central garage Central garage Compensation and benefits 709,607 Contractual services 22,470 Commodities 110,363 Total activity 842,440 Motor pool service Commodities Total activity Total department (Continued) 100 533,452 533,452 1,375,892 Page 317 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2016 Expenditures: Public works function (continued) Airport Airport administration Compensation and benefits $ 596,183 Contractual services 240,896 Commodities 82,790 Capital outlay 4,859 Total activity and department 924,728 Building inspection department Parking operations Contractual services Commodities Total activity and department 498,438 85,278 583,716 Public works function totals Current Compensation and benefits 1,348,414 Contractual services 764,736 Commodities 813,138 Subtotal 2,926,288 Capital outlay 219,807 Total public works function $ 3,146,095 Health and social services function Mayor Health and sanitation Contractual services $ 75,000 Total activity and department 75,000 Human rights department Human rights Compensation and benefits 234,566 Contractual services 11,184 Commodities 1,507 Total activity 247,257 EEOC contract Compensation and benefits Contractual services Total activity Housing enforcement Contractual services Commodities Total activity Total department 10,000 27,158 37,158 16,354 16,354 300,769 Health and social services function totals Current Compensation and benefits 244,566 Contractual services 129,696 Commodities 1,507 Total health and social services function $ 375,769 (Continued) 101 Page 318 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2016 Expenditures: Culture and recreation function Mayor Fairview cemetery association Contractual services $ 50,000 Total activity and department 50,000 Cultural/arts Center for the arts Compensation and benefits 615,558 Contractual services 77,143 Commodities 26,415 Total activity 719,116 Youth pavilion Compensation and benefits 296,848 Contractual services 44,639 Commodities 23,320 Total activity 364,807 Culture and arts grants and projects Compensation and benefits 3,131 Contractual services 70,589 Commodities 1,647 Total activity 75,367 Total department 1,159,290 Library Library services Compensation and benefits 1,408,545 Contractual services 180,232 Commodities 264,525 Total activity 1,853,302 Library Enrich Iowa Contractual services Commodities Total activity Library access plus Commodities Total activity Library grants Contractual services Commodities Total activity (Continued) 102 12,452 4,829 17,281 2,997 2,997 63,632 30,440 94,072 Page 319 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2016 Expenditures (continued): Culture and recreation function (continued): Library (continued): Library gift and trust Contractual services $ 15,993 Commodities 44,379 Total activity 60,372 Library service area Commodities Capital outlay Total activity County library system Compensation and benefits Commodities Total activity Library open access Contractual services Commodities Total activity Total department 4,108 4,108 58,592 991 59,583 2,812 3,647 6,459 2,098,174 Leisure services Leisure services Compensation and benefits 1,940,845 Contractual services 224,718 Commodities 222,607 Capital outlay 5,995 Total activity 2,394,165 Downtown area maintenance Compensation and benefits 188,611 Contractual services 51,602 Commodities 35,000 Total activity 275,213 Leisure services projects Compensation and benefits 1,000 Contractual services 43,725 Commodities 66,208 Capital outlay 13,070 Total activity 124,003 Golf courses Compensation and benefits 940,697 Contractual services 111,841 Commodities 148,007 Total activity 1,200,545 Golf course improvements Contractual services Total activity (Continued) 103 587 587 Page 320 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2016 Expenditures (continued): Culture and recreation function (continued): Leisure services (continued) Sports and youth services Compensation and benefits $ 479,853 Contractual services 37,714 Commodities 136,440 Total activity 654,007 Young arena Compensation and benefits 452,913 Contractual services 195,023 Commodities 185,851 Total activity 833,787 Sportsplex Compensation and benefits 757,469 Contractual services 316,770 Commodities 136,022 Capital outlay 8,036 Total activity 1,218,297 Total department 6,700,604 Culture and recreation function totals Current Compensation and benefits 7,144,062 Contractual services 1,499,472 Commodities 1,337,433 Subtotal 9,980,967 Capital outlay 27,101 Total culture and recreation function $ 10,008,068 Community and economic development function Mayor Iowa northland council of governments Contractual services $ 32,151 Total activity 32,151 Tourism promotion Contractual services Total activity Waterloo Convention & Visitors Bureau, Inc. Contractual services Total activity Total department 296,361 296,361 640,655 640,655 969,167 Planning and zoning Planning and zoning Compensation and benefits 509,253 Contractual services 20,225 Commodities 5,276 Capital outlay 35,427 Total activity 570,181 City property management Contractual services Total activity (Continued) 104 120,626 120,626 Page 321 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2016 Expenditures (continued): Community and economic development function (continued): Planning and zoning (continued) Economic development Compensation and benefits $ 50,976 Total activity 50,976 Special projects Contractual services Total activity Total department 10,981 10,981 752,764 Building inspection department Five Sullivans Civic Center Compensation and benefits 95,489 Contractual services 92,178 Commodities 16,075 Total activity and department 203,742 Community and economic development function totals Current Compensation and benefits 655,718 Contractual services 1,213,177 Commodities 21,351 Subtotal 1,890,246 Capital outlay 35,427 Total community and economic development function $ 1,925,673 General government function Mayor Mayor's office Compensation and benefits $ 192,757 Contractual services 13,948 Commodities 772 Total activity 207,477 Mayor restricted projects Contractual services Total activity 617 617 Administrative and management information services Compensation and benefits 219,562 Contractual services 119,588 Commodities 14,281 Total activity 353,431 Total department 561,525 City council City council Compensation and benefits Contractual services Total activity and department (Continued) 105 65,751 1,848 67,599 Page 322 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2016 Expenditures: General government function (continued): City clerk and finance Telecommunications Compensation and benefits $ 143,616 Contractual services 966 Commodities 1,068 Total activity 145,650 City clerk and finance Compensation and benefits 843,619 Contractual services 300,917 Commodities 77,838 Total activity 1,222,374 Liability insurance Compensation and benefits Contractual services Total activity Health/life insurance Compensation and benefits Contractual services Total activity Self-funded worker's compensation Contractual services Total activity Print shop Contractual services Total activity Total department 45,241 1,614,246 1,659,487 2,429 325,079 327,508 468,584 468,584 30,042 30,042 3,853,645 City attorney City attorney Compensation and benefits 200,425 Contractual services 58,061 Commodities 7,447 Total activity and department 265,933 Human resources Employee assistance program Contractual services Total activity 1,560 1,560 Human resources Compensation and benefits 297,010 Contractual services 70,414 Commodities 6,568 Total activity 373,992 (Continued) 106 Page 323 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2016 Expenditures (continued): General government function (continued): Human resources (continued): Safety committee Compensation and benefits Contractual services Commodities Total activity Total department 540 5,507 2,170 8,217 383,769 Building inspection department Facilities maintenance Compensation and benefits 259,495 Contractual services 204,467 Commodities 43,212 Total activity 507,174 Facilities restricted project Contractual services 552 Commodities 1,848 Total activity 2,400 Veteran's memorial hall Contractual services Total activity Total department 6,801 6,801 516,375 General government function totals Current Compensation and benefits 2,270,445 Contractual services 3,223,197 Commodities 155,204 Total general government function $ 5,648,846 107 Page 324 of 405 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2016 Expenditures: Public safety Public works Health and social services Culture and recreation Community and economic development General government Total expenditures Revenue under expenditures Other financing sources (uses): Transfers in Transfers out Insurance proceeds Proceeds from sale of capital assets Total other financing sources Net change in fund balance Fund balance, beginning of year Fund balance, end of year 108 $ 26, 938,184 3,146, 095 375,769 10,008,068 1,925,673 5,648,846 $ 48,042,635 $ (6,300,838) 6,453,326 (138,478) 766,470 214,138 7,295,456 994,618 24, 506, 394 $ 25,501,012 Page 325 of 405 City of Waterloo, Iowa Combining Balance Sheet Nonmajor Governmental Funds June 30, 2016 Special Revenue Capital Projects Total Assets Cash and cash equivalents $ 12,521,958 $ 10,618,763 $ 23,140,721 Receivables: Customer accounts 14,935 121,424 136,359 Property taxes: Delinquent 3,261 - 3,261 Succeeding year 583,702 - 583,702 Accrued interest 9,182 - 9,182 Due from other funds 1,650 - 1,650 Due from other governments: Federal 658,094 - 658,094 Iowa 8,059,136 - 8,059,136 Other 420,133 - 420,133 Inventories and prepaids 290,117 - 290,117 Restricted assets, cash and cash equivalents 2,091,379 - 2,091,379 Advances to other funds 129,612 - 129,612 Total assets Liabilities, Deferred Inflows of Resources and Fund Balances $ 24, 783,159 $ 10, 740,187 $ 35, 523, 346 Liabilities: Accounts payable $ 1,731,166 $ 756,212 $ 2,487,378 Retainages payable 630,244 55,120 685,364 Accrued liabilities 208,773 - 208,773 Due to other funds 2,663,474 1,436,610 4,100,084 Compensated absences 29,221 - 29,221 Payable from restricted assets 77,947 - 77,947 Total liabilities 5,340,825 2,247,942 7,588,767 Deferred inflows of resources: Unavailable revenue - property taxes 586,963 - 586,963 Unavailable revenue - local option sales tax 375,000 - 375,000 Unavailable revenue - intergovernmental 3,464,759 121,424 3,586,183 Total deferred inflows of resources 4,426,722 121,424 4,548,146 Fund Balances: Nonspendable Restricted Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances 290,117 15,377,581 1,953,669 (2,605,755) 10,260,091 (1,889,270) 290,117 25, 637, 672 1,953,669 (4,495,025) 15,015,612 8,370,821 23,386,433 $ 24, 783,159 $ 10, 740,187 $ 35, 523, 346 109 Page 326 of 405 City of Waterloo, Iowa Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2016 Special Revenue Capital Projects Total Revenues: Property taxes $ 594,097 $ - $ 594,097 Other taxes 9,634,250 - 9,634,250 Licenses and permits 35,511 - 35,511 Investment income 11,269 59,992 71,261 Rent 195,025 - 195,025 Intergovernmental 25,463,875 - 25,463,875 Charges for services 318,609 - 318,609 Interfund charges for services 50,000 - 50,000 Miscellaneous 121,431 456,798 578,229 Total revenues 36,424,067 516,790 36,940,857 Expenditures: Current: Public safety 18,583 - 18,583 Public works 23,518,475 - 23,518,475 Culture and recreation 829,915 - 829,915 Community and economic development 9,715,687 - 9,715,687 General government - - Debt service, interest and fees 27,460 27,460 Capital outlay 12,781,239 12,781,239 Total expenditures 34,082,660 12,808,699 46,891,359 Revenues over (under) expenditures 2,341,407 (12,291,909) (9,950,502) Other financing sources (uses): Transfers in 43,718 5,631,304 5,675,022 Transfers out (43,718) (43,718) Bond discount - - Bond premium - - Proceeds from the sale of capital assets 121,480 - 121,480 Total other financing sources (uses) 165,198 5,587,586 5,752,784 Net change in fund balance 2,506,605 (6,704,323) (4,197,718) Fund balance, beginning of year 12,509,007 15,075,144 27,584,151 Fund balance, end of year $ 15,015,612 $ 8,370,821 $ 23,386,433 110 Page 327 of 405 City of Waterloo, Iowa Special Revenue Funds June 30, 2016 Special Revenue Funds account for the proceeds of specific revenue sources that are legally or contractually restricted for particular purposes. The proceeds are segregated into individual funds to ensure that expenditures are made exclusively for qualified purposes, as follows: Nonmajor: Local Option Tax Fund — This fund is used to account for resources provided from a 1 percent sales tax approved by the citizens of Waterloo which is restricted for the construction, reconstruction and repair of City streets. Library Tax Levy Fund — This fund is used to account for property taxes levied, as passed by local referendum, to be used to increase the hours of operation of the Waterloo Public Library. Community Development Block Grant Fund — This fund accounts for revenue received under the Community Development Block Grant federal entitlement. Road Use Tax Fund — This fund is required by the Code of Iowa to account for the City's share of fuel taxes collected and allocated by the state which is restricted for local street maintenance. Housing Programs Fund — This fund is used to account for resources received to provide housing assistance, primarily Federal Section 8 and Ridgeway Towers. Grants Fund — This fund is used to account for resources received for various federal and Iowa funded projects which are not accounted for elsewhere and are restricted to specific programs. Federal Aviation Agency Projects Fund — This fund is used to account for resources from the Federal Aviation Agency and Passenger Facility Charges restricted for airport development. 111 Page 328 of 405 City of Waterloo, Iowa Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2016 Special Revenue Community Local Option Library Development Sales Tax Tax Levy Block Grant Assets Cash and cash equivalents $ 4,823,080 $ 237,550 $ 700 Receivables: Customer accounts - - Property taxes: Delinquent 3,261 - Succeeding year 583,702 - Accrued interest - 8,849 Due from other funds - - Due from other governments: Federal - 93,272 Iowa 2,013,749 - 1,728,562 Other 413,457 5,876 - Inventories and prepaids - - Restricted cash and cash equivalents - - Advances to other funds 13,598 7,825 - Total assets Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 7,263,884 $ 838,214 $ 1,831,383 Liabilities: Accounts payable $ 456,344 $ - $ 654,519 Retainages payable 282,197 - 216,402 Accrued liabilities 32,020 18,326 16,357 Due to other funds - - 931,658 Compensated absences 1,020 2,282 4,301 Payable from restricted assets - - - Total liabilities 771,581 20,608 1,823,237 Deferred inflows of resources: Unavailable revenue - property taxes 586,963 - Unavailable revenue - local option sales tax 375,000 - - Unavailable revenue - intergovernmental - 224,113 Total deferred inflows of resources 375,000 586,963 224,113 Fund balances (deficit): Nonspendable - - Restricted 4,244,692 149,585 - Assigned 1,872,611 81,058 - Unassigned - - (215,967) Total fund balances (deficit) 6,117,303 230,643 (215,967) Total liabilities, deferred inflows of resources and fund balances (deficit) $ 7,263,884 $ 838,214 $ 1,831,383 112 Page 329 of 405 Special Revenue Road Use Tax Federal Aviation Housing Programs Grants Agency Projects Total $ 5,127,801 $ 2,332,827 $ - $ $ 12,521,958 2,647 12,288 - 14,935 - - 3,261 - - 583,702 - 333 - 9,182 - 1,650 1,650 - 23,257 - 541,565 658,094 1,692,087 2,580,845 43,893 8,059,136 - - 800 420,133 280,829 9,288 - 290,117 - 2,041,640 - 49,739 2,091,379 108,189 - 129,612 $ 7,211,553 $ 4,419,633 $ 2,582,495 $ 635,997 $ 24,783,159 90,619 $ 124,192 1,650 17,108 25,188 $ 17,465 4,510 77,947 292,550 $ 211,946 $ 1,731,166 87,378 44,267 630,244 413 - 208,773 1,543,808 186,358 2,663,474 29,221 77,947 233,569 125,110 1,924,149 442,571 5,340,825 - - 586,963 - - 375,000 119,961 5,849 2,541,210 573,626 3,464,759 119,961 5,849 2,541,210 573,626 4,426,722 280,829 9,288 - 290,117 6,577,194 4,279,386 - 126,724 15,377,581 - - - 1,953,669 - (1,882,864) (506,924) (2,605,755) 6,858,023 4,288,674 (1,882,864) (380,200) 15,015,612 $ 7,211,553 $ 4,419,633 $ 2,582,495 $ 635,997 $ 24,783,159 113 Page 330 of 405 City of Waterloo, Iowa Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) Nonmajor Special Revenue Funds Year Ended June 30, 2016 Special Revenue Community Local Option Library Development Sales Tax Tax Levy Block Grant Revenues: Property taxes $ $ 594,097 $ - Other taxes 9,597,048 25,976 - Licenses and permits - - - Investment income 9,398 439 - Rent - - Intergovernmental - 4,272,867 Charges for services - 101,959 Interfund charges for services - - Miscellaneous 48 40,708 Total revenues 9,606,446 620,560 4,415,534 Expenditures: Current: Public safety - - Public works 9,511,073 - - Culture and recreation 584,726 - Community and economic development - 4,624,828 General government - - Total expenditures 9,511,073 584,726 4,624,828 Excess of revenues over expenditures 95,373 35,834 (209,294) Other financing sources (uses): Transfers in Proceed from the sale of capital assets Total other financing sources (uses) - - Change in fund balance (deficit) 95,373 35,834 (209,294) Fund balances (deficit), beginning of year 6,021,930 194,809 (6,673) Fund balances (deficit), end of year $ 6,117,303 $ 230,643 $ (215,967) 114 Page 331 of 405 Special Revenue Road Use Tax Federal Aviation Housing Programs Grants Agency Projects Total - $ $ - $ $ 594,097 - 11,226 9,634,250 35,511 - 35,511 - 1,117 - 315 11,269 - 195,025 - 195,025 8,379,362 4,941,923 7,069,668 800,055 25,463,875 60,214 38,627 - 117,809 318,609 50,000 - - 50,000 73,215 7,460 - 121,431 8,598,302 5,184,152 7,080,894 918,179 36, 424, 067 5,208 7,098,393 5,651,271 245,189 5,061,733 29,126 13,375 1,257,738 18,583 23,518,475 829,915 9,715,687 7,098,393 5,061,733 5,930,794 1,271,113 34,082,660 1,499,909 122,419 1,150,100 (352, 934) 2,341,407 43,718 43,718 121,480 121,480 165,198 165,198 1,499,909 122,419 1,315,298 (352, 934) 2,506,605 5,358,114 4,166,255 (3,198,162) (27,266) 12,509,007 $ 6,858,023 $ 4,288,674 $ (1,882,864) $ (380,200) $ 15,015,612 115 Page 332 of 405 City of Waterloo, Iowa Capital Projects Funds June 30, 2016 Capital Projects Funds account for the City's financial resources used for the acquisition or construction of major nonproprietary capital facilities. The City of Waterloo has capital projects funds as follows: Nonmajor: June 2009 GO Bonds Fund — This fund is used to account for proceeds from the 2009 general obligation bond sale until expended for the restricted purpose. June 2010 GO Bonds Fund — This fund is used to account for proceeds from the 2010 general obligation bond sale until expended for the restricted purpose. June 2011 GO Bonds Fund — This fund is used to account for proceeds from the 2011 general obligation bond sale until expended for the restricted purpose. June 2012 GO Bonds Fund — This fund is used to account for proceeds from the 2012 general obligation bond sale until expended for the restricted purpose. June 2013 GO Bonds Fund — This fund is used to account for proceeds from the 2013 general obligation bond sale until expended for the restricted purpose. June 2014 GO Bonds Fund — This fund is used to account for proceeds from the 2014 general obligation bond sale until expended for the restricted purpose. June 2015 GO Bonds Fund — This fund is used to account for proceeds from the 2015 general obligation bond sale until expended for the restricted purpose. Capital Improvements Funds — This fund is used to account for the use of resources on governmental capital projects not accounted for in other capital projects funds and are restricted for specific projects. 116 Page 333 of 405 City of Waterloo, Iowa Combining Balance Sheet Capital Projects Funds June 30, 2016 June 2009 GO Bonds June 2010 GO Bonds June 2011 GO Bonds Assets Cash and cash equivalents $ $ 450,381 $ 572,519 Receivables, customer accounts Total assets $ $ 450,381 $ 572,519 Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) Liabilities: Accounts payable $ $ 11,019 $ 864 Retainages payable - Due to other funds - Total liabilities 11,019 864 Deferred inflows of resources, unavailable revenue - intergovernmental Fund balances (deficit): Restricted 439,362 571,655 Unassigned Total fund balances (deficit) 439,362 571,655 Total liabilities, deferred inflows of resources and fund balances (deficit) $ $ 450,381 $ 572,519 117 Page 334 of 405 June 2012 GO Bonds June 2013 GO Bonds June 2014 GO Bonds June 2015 Capital GO Bonds Improvements Total $ 1,193,406 $ 1,521,566 $ 1,837,204 $ 5,043,687 $ 121,424 $ 10,618,763 121,424 $ 1,193,406 $ 1,521,566 $ 1,837,204 $ 5,043,687 $ 121,424 $ 10,740,187 $ 2,879 $ 10,579 $ 157,098 $ 249,540 $ 324,233 $ 756,212 55,120 55,120 1,436,610 1,436,610 2,879 10,579 157,098 249,540 1,815,963 2,247,942 121,424 121,424 1,190,527 1,510,987 1,680,106 4,794,147 73,307 (1,889,270) 10,260,091 (1,889,270) 1,190,527 1,510,987 1,680,106 4,794,147 (1,815,963) 8,370,821 $ 1,193,406 $ 1,521,566 $ 1,837,204 $ 5,043,687 $ 121,424 $ 10,740,187 118 Page 335 of 405 City of Waterloo, Iowa Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) Capital Projects Funds Year Ended June 30, 2016 June 2009 GO Bonds June 2010 GO Bonds June 2011 GO Bonds Revenues: Investment income Miscellaneous Total revenues Expenditures: Debt service, interest expense Capital outlay Total expenditures $ 1,098 $ 2,144 $ 3,137 1,098 2,144 3,137 320,352 36,692 280,653 320,352 36,692 280,653 Revenues over (under) expenditures (319,254) (34,548) (277,516) Other financing sources (uses): Transfers in - - Transfers out - - Bond discount - - Bond premium - - Issuance of long-term debt - - Total other financing sources (uses) - - Net change in fund balances (deficit) Fund balances (deficit), beginning of year Fund balances (deficit), end of year 119 (319, 254) 319,254 (34,548) (277,516) 473,910 849,171 $ 439,362 $ 571,655 Page 336 of 405 June 2012 June 2013 June 2014 June 2015 Capital GO Bonds GO Bonds GO Bonds GO Bonds Improvements Total $ 6,789 $ 7,726 $ 11,531 $ 27,567 $ $ 59,992 - - - - 456,798 456,798 6,789 7,726 11,531 27,567 456,798 516,790 3,500 - 23,960 350,828 392,125 2,534,235 354,328 392,125 2,558,195 3,226,415 3,226,415 (347,539) (384,399) (2,546,664) (3,198,848) 27,460 5,639,939 12,781,239 5,639,939 12,808,699 (5,183,141) (12,291,909) - (43,718) 5,631,304 5,631,304 (43,718) - (43,718) 5,631,304 5,587,586 (347,539) (384,399) (2,546,664) (3,242,566) 448,163 (6,704,323) 1,538,066 1,895,386 4,226,770 8,036,713 (2,264,126) 15,075,144 $ 1,190,527 $ 1,510,987 $ 1,680,106 $ 4,794,147 $ (1,815,963) $ 8,370,821 120 Page 337 of 405 City of Waterloo, Iowa Fiduciary Funds June 30, 2016 Fiduciary Funds account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. The City of Waterloo has the following fiduciary fund: Agency Fund — This fund is used to account for property taxes collected on behalf of the Metropolitan Transit Agency, Water Works kill water assessments, and building permits passed through to Black Hawk County. 121 Page 338 of 405 City of Waterloo, Iowa Statement of Changes in Assets and Liabilities Agency Fund Year Ended June 30, 2016 Balance Balance June 30, June 30, 2015 Additions Deletions 2016 Assets, cash $ - $ 1,484,049 $ 1,484,049 $ Liabilities, due to private entities $ - $ 1,484,049 $ 1,484,049 $ 122 Page 339 of 405 City of Waterloo, Iowa Statistical Section This part of the City of Waterloo's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the city provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The city implemented GASB Statement 34 in fiscal 2003; therefore, schedules presenting government -wide information include information beginning in that year. 123 124 129 133 138 140 Page 340 of 405 Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business -type activities Net investment in capital assets Restricted Unrestricted Total business -type activities net position Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position City of Waterloo, Iowa Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) 2007 $ 193, 678, 687 22, 213, 054 5,626,315 $ 221,518,056 $ 63,144,916 3,334,062 7,963,580 $ 74,442,558 $ 256,823,603 25, 547,116 13, 589, 895 $ 295,960,614 2008 $ 202,629,813 25, 583, 429 7,342,293 $ 235,555,535 $ 63,754,721 3,182, 802 9,473,128 $ 76,410,651 $ 266,384,534 28, 766, 231 16,815,421 $ 311,966,186 2009 $ 216, 863, 066 32, 652, 537 4,738,557 $ 254,254,160 $ 65,420,051 3,171,308 9,440,050 $ 78,031,409 $ 282,283,117 35, 823, 845 14,178, 607 $ 332,285,569 2010 $ 233,853,135 36, 648, 414 3,591,308 $ 274,092,857 2011 $ 243,084,776 28, 098, 845 9,823,688 $ 281,007,309 $ 66,494,749 $ 67,576,579 3,178, 807 3,170, 694 10, 719, 450 13, 086, 820 2012 $ 250,819,314 31, 552, 558 9,694,131 $ 292,066,003 2013 $ 264,695,106 30, 823, 956 7,214,587 $ 302,733,649 2014 $ 273,871,470 30,579,471 8,998,045 $ 313, 448, 986 $ 71,243,134 $ 74,508,694 $ 79,920,865 1,655,694 1,383,659 1,310,099 14, 659, 699 14, 202, 857 11, 445, 832 $ 80,393,006 $ 83,834,093 $ 87,558,527 $ 90,095,210 $ 92,676,796 $ 300, 347, 884 39, 827, 221 14, 310, 758 $ 354,485,863 124 $ 310,661,355 31, 269, 539 22, 910, 508 $ 364,841,402 $ 322,062,448 33, 208, 252 24, 353, 830 $ 379,624,530 $ 339,203,800 32, 207, 615 21,417,444 $ 392,828,859 Page 341 of 405 $ 353,792,335 31, 889, 570 20,443,877 $ 406,125, 782 2015 $ 307, 415, 275 30,438,501 (31, 681, 588) $ 306,172,188 $ 78,270,214 727,235 11, 638, 646 $ 90,636,095 $ 385,685,489 31,165, 736 (20, 042, 942) $ 396,808,283 2016 $ 316,701,068 20, 032, 995 (23,683,497) $ 313, 050, 566 $ 79,522,665 672,515 12, 025, 408 $ 92,220,588 $ 396,223,733 20, 705, 510 (11, 658, 089) $ 405,271,154 Expenses Governmental activities: Public safety Public works Health and social services Culture and recreation Community and economic development General government Interest on long-term debt Total governmental activities expenses City of Waterloo, Iowa Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Page 1 of 2) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $ 26,046,236 $ 26,214,669 $ 26,719,053 $ 28,612,482 $ 29,629,282 $ 30,037,249 $ 31,913,280 $ 31,773,269 $ 25,988,767 $ 34,120,160 17,265,784 21,705,472 22,435,723 22,839,814 23,276,707 23,297,561 24,938,888 28,911,525 29,570,277 29,670,192 258,818 268,761 260,584 244,594 257,618 278,589 299,282 368,173 325,607 295,088 8,059,963 8,408,694 9,512,453 9,951,066 10,080,005 10,515,120 10,491,266 11,315,704 11,676,287 11,950,688 9,666,943 9,581,090 13, 520, 082 15,138, 776 16, 675, 218 16,138, 333 14,129, 616 12, 910, 299 13,190, 672 13, 753, 669 3,903,632 4,511,057 5,150,029 4,548,726 4,860,959 4,219,355 3,714,993 2,749,672 4,869,696 5,247,593 2,728,225 2,782,119 2,880,205 2,736,194 2,639,047 2,459,710 2,680,614 2,349,054 2,208,744 2,048,517 67,929,601 73,471,862 80,478,129 84,071,652 87,418,836 86,945,917 88,167,939 90,377,696 87,830,050 97,085,907 Business -type activities: Sanitary sewer 8,242,650 8,649,104 8,573,832 8,682,068 10,437,723 9,730,465 10,033,041 9,811,929 12,518,569 14,018,836 Sanitation 3,226,802 3,289,854 3,593,300 3,873,028 3,408,358 3,680,500 3,640,314 3,215,663 3,612,307 3,921,263 Total business -type activities expenses 11,469,452 11,938,958 12,167,132 12,555,096 13,846,081 13,410,965 13,673,355 13,027,592 16,130,876 17,940,099 Total primary government expenses $ 79,399,053 $ 85,410,820 $ 92,645,261 $ 96,626,748 $ 101,264,917 $ 100,356,882 $ 101,841,294 $ 103,405,288 $ 103,960,926 $ 115,026,006 Program Revenue Governmental activities: Charges for services: Public safety Public works Culture and recreation Other activities Operating grants and contributions Capital grants and contributions Total governmental activities program revenue $ 1,940,446 $ 3,441,302 $ 3,143,136 $ 3,331,924 $ 3,874,275 $ 3,602,246 $ 3,683,489 $ 3,800,273 $ 4,018,731 $ 4,325,957 1,774,681 1,933,607 1,894,200 1,887,850 1,984,786 2,224,870 2,192,414 2,802,925 2,498,057 1,284,289 2,077,330 2,263,815 2,441,457 2,337,191 2,339,044 2,592,204 2,492,426 3,010,899 3,361,891 3,645,647 580,948 1,361,824 1,139, 772 1,125, 370 1,229,991 1,268,316 1,489,631 1,531,761 1,667,019 769,733 16, 568, 953 14, 018,130 16, 803, 356 18, 592, 551 16, 376, 376 16, 603, 449 14, 967,188 11, 938, 221 11, 335, 064 18, 581, 010 5,911,499 8,609,193 13,787,329 14,938,736 9,832,416 10,720,735 9,364,734 12,668,122 39,116,737 9,065,137 28,853,857 31,627,871 39,209,250 42,213,622 35,636,888 37,011,820 34,189,882 35,752,201 61,997,499 37,671,773 Business -type activities: Charges for services: Sanitary sewer 9,321,295 9,598,454 9,628,876 11,185,490 13,283,908 13,147,754 12,285,502 12,845,301 12,661,602 14,277,752 Sanitation 3,274,550 3,294,443 3,349,978 3,398,533 3,446,332 3,572,238 3,615,787 3,609,500 3,585,270 3,650,271 Operating grants and contributions: Sanitary sewer - 240,678 339,496 - 125,802 54,041 - - 24,236 1,892 Sanitation 315,437 288,866 274,988 314,940 399,000 215,584 273,869 272,755 274,324 273,624 Capital grants and contributions: Sanitary sewer 799,265 127,092 106,200 - 81,302 82,443 - - - 1,271,776 Sanitation - - 3,000 - - 560 13,585 Total business -type activities program revenue 13,710,547 13,549,533 13,702,538 14,898,963 17,336,344 17,072,620 16,188,743 16,727,556 16,545,432 19,475,315 Total primary government program revenue $ 42,564,404 $ 45,177,404 $ 52,911,788 $ 57,112,585 $ 52,973,232 $ 54,084,440 $ 50,378,625 $ 52,479,757 $ 78,542,931 $ 57,147,088 Net (Expense)/Revenue Governmental activities Business -type activities $ (39,075,744) $ (41,843,991) $ (41,268,879) $ (41,858,030) $ (51,781,948) $ (49,934,097) $ (53,978,057) $ (54,625,495) $ (25,832,551) $ (59,414,134) 2,241,095 1,610,575 1,535,406 2,343,867 3,490,263 3,661,655 2,515,388 3,699,964 414,556 1,535,216 Total primary government net expense $ (36,834,649) $ (40,233,416) $ (39,733,473) $ (39,514,163) $ (48,291,685) $ (46,272,442) $ (51,462,669) $ (50,925,531) $ (25,417,995) $ (57,878,918) 125 Page 342 of 405 City of Waterloo, Iowa Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Page 2 of 2) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 General Revenue and Other Changes in Net Position Governmental activities: Taxes: Property taxes levied for general purposes $ 25,835,947 $ 25,848,956 $ 27,456,508 $ 28,508,924 $ 28,741,347 $ 29,825,135 $ 31,586,154 $ 30,834,085 $ 30,647,230 $ 30,794,803 Property taxes levied for debt service 9,727,666 10,050,725 11,319,918 11,988,239 12,287,504 12,997,545 13,950,496 13,751,830 14,867,749 15,533,194 Other taxes 12,101, 827 13, 674, 750 14, 208, 362 13, 911, 219 14, 566, 088 14, 844, 322 15,142, 297 16, 745, 434 17, 471, 721 17, 554, 079 Investment earnings 1,924,494 1,432,651 426,353 170,946 152,078 54,485 45,578 117,515 180,123 187,046 Miscellaneous 4,030,419 3,900,343 6,556,363 5,189,217 2,879,152 3,315,471 3,925,918 2,748,468 1,108,633 2,034,957 Gain (loss) on sale of assets 1,827,508 - - - - 188,433 Transfers 70,231 (44,167) (4,740) (2,035) - Total governmental activities 53,620,353 54,907,425 59,967,504 61,596,053 58,696,400 60,992,791 64,645,703 64,197,332 64,273,421 66,292,512 Business -type activities: Investment earnings 532,645 357,518 85,352 17,730 21,055 18,612 16,555 25,122 39,714 49,277 Gain (loss) on sale of assets - - - 1,711 Transfers (70,231) 44,167 4,740 2,035 Total business -type activities 532,645 357,518 85,352 17,730 (49,176) 62,779 21,295 25,122 43,460 49,277 Total primary government $ 54,152,998 $ 55,264,943 $ 60,052,856 $ 61,613,783 $ 58,647,224 $ 61,055,570 $ 64,666,998 $ 64,222,454 $ 64,316,881 $ 66,341,789 Changes in Net Assets Governmental activities Business -type activities Total primary government $ 14,544,609 $ 13,063,434 $ 18,698,625 $ 19,738,023 $ 6,914,452 $ 11,058,694 $ 10,667,646 $ 10,715,337 $ 38,440,870 $ 6,878,378 2,773,740 1,968,093 1,620,758 2,361,597 3,441,087 3,724,434 2,536,683 2,581,586 458,016 1,584,493 $ 17,318,349 $ 15,031,527 $ 20,319,383 $ 22,099,620 $ 10,355,539 $ 14,783,128 $ 13,204,329 $ 13,296,923 $ 38,898,886 $ 8,462,871 126 Page 343 of 405 City of Waterloo, Iowa Fund Balances - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 General Fund Nonspendable $ - $ - $ - $ - $ 310,432 $ 326,276 $ 322,077 $ 392,741 $ 323,781 $ 267,413 Restricted - - - - 3,602,691 3,438,392 5,497,065 8,667,499 9,109,347 10,390,434 Committed - - - - 662,415 - - 36,595 - Assigned - - - - 4,878,877 4,802,837 5,318,721 4,430,460 4,848,307 5,007,033 Unassigned - - - - 8,417,600 9,644,699 8,907,668 10,184,876 10,224,959 9,836,132 Reserved 2,159,691 3,074,869 2,367,516 3,064,085 Unreserved: Designated 5,131,230 4,577,679 4,720,531 5,077,047 - - - - - - Undesignated 6,946,759 7,438,418 8,152,625 8,610,737 - Total general fund $ 14,237,680 $ 15,090,966 $ 15,240,672 $ 16,751,869 $ 17,872,015 $ 18,212,204 $ 20,045,531 $ 23,712,171 $ 24,506,394 $ 25,501,012 All Other Governmental Funds Nonspendable $ - $ - $ - $ - $ 208,100 $ 297,516 $ 233,192 $ 466,165 $ 298,880 $ 290,117 Restricted - - - - 39,357,168 42,286,946 42,907,706 28,709,385 38,887,421 47,673,892 Committed - - - - - - - - - - Assigned - - - - 2,322,606 2,332,997 2,370,221 80,148 2,396,279 2,424,601 Unassigned - - - - (5,150,315) (7,161,884) (4,608,778) (1,929,863) (5,711,850) (4,495,025) Reserved 2,103,658 2,633,730 2,923,228 2,786,146 Undesignated, reported in: Special revenue funds 13,021,323 16,846,339 17,918,742 16,410,755 - - - - - - Debt service funds 1,529,968 - - - - - - - - - Capital project funds 16,440,553 17,205,128 14,259,781 12,144,579 - Total all other governmental funds $ 33,095,502 $ 36,685,197 $ 35,101,751 $ 31,341,480 $ 36,737,559 $ 37,755,575 $ 40,902,341 $ 27,325,835 $ 35,870,730 $ 45,893,585 GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, implemented in fiscal year 2011. 127 Page 344 of 405 City of Waterloo, Iowa Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenue Property taxes $ 35,550,774 $ 35,863,457 $ 38,789,695 $ 40,454,704 $ 41,013,565 $ 42,864,091 $ 45,485,229 $ 44,623,905 $ 45,440,607 $ 46,259,411 Other taxes 11, 609, 390 13, 532, 878 14, 368, 254 13, 982, 362 14, 703, 052 15, 460, 718 14, 683, 459 16, 946, 689 17, 599, 304 17, 309, 079 Licenses and permits 1,528,961 1,274,948 977,306 996,031 1,236,912 1,119,886 1,128,513 1,350,599 1,413,739 1,491,131 Investment income 1,924,494 1,432,651 426,353 170,946 152,078 54,485 45,578 117,515 183,938 187,047 Rent* 1,023,689 992,710 1,060,566 1,060,889 1,094,271 1,186,419 1,191,376 1,263,682 1,293,559 1,235,525 Intergovernmental 21,107,074 21,833,988 22,932,392 30,681,962 30,092,432 25,596,988 27,797,797 23,425,271 28,647,425 26,670,622 Charges for services* 5,554,760 5,767,327 5,963,660 5,932,437 6,397,007 6,748,285 6,512,462 6,894,308 7,371,370 8,142,707 Interfund charges for service 2,802,327 2,825,152 2,808,833 2,385,680 2,134,553 1,935,000 1,935,000 1,935,000 1,935,000 1,935,000 Special assessments 39,932 39,931 37,216 225,198 47,171 93,870 124,467 139,408 127,266 138,434 Miscellaneous 3,878,401 4,683,887 6,043,260 3,773,963 3,292,228 3,702,763 4,503,173 3,425,567 2,760,949 2,032,729 Total revenue 85,019,802 88,246,929 93,407,535 99,664,172 100,163,269 98,762,505 103,407,054 100,121,944 106,773,157 105,401,685 Expenditures Current: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Principal Interest and fees Bond Issuance Costs** Capital projects Total expenditures Revenue over (under) expenditures Other financing sources (uses) Transfers in Transfers out Insurance proceeds Proceeds from sale of assets Capital lease obligations incurred Refunding bonds issued Payment to refunded bond escrow agent Proceeds from debt issued Bond discounts and issue costs Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures 25,074,830 25,958,017 22, 688, 730 15, 354, 726 332,431 346,169 7,385,038 7,683,720 9,097,089 10, 075,134 4,128,315 4,539,873 7,353,618 8,134,849 2,909,085 2,908,196 11, 035, 051 20, 405, 512 90, 004,187 95, 406,196 (4,984,385) (7,159,267) 10, 871, 913 13, 447, 647 (10,871,913) (13,447,647) 88,102 41,491 25,941,016 26,947,910 27,686,410 29,272,717 30,517,147 30,865,364 30,588,630 31,380,988 23,846,845 27,635,226 19,761,835 25,565,737 26,286,055 29,009,814 34,515,685 26,664,570 333,706 316,974 325,730 346,952 370,275 365,847 407,060 375,769 8,844,296 9,264,689 8,960,633 9,396,914 9,134,554 9,835,758 10,633,238 10,837,983 13, 954, 851 17, 423, 767 15, 740, 405 13, 794,104 13, 555, 391 12, 966, 402 11, 783, 311 13, 483, 447 5,532,557 5,097,361 5,623,650 4,956,104 3,980,405 2,468,932 5,459,817 5,671,640 7,698,818 8,783,299 9,565,662 8,623,207 8,708,554 8,886,944 9,659,890 11,314,503 2,975,411 2,799,830 2,623,038 2,536,705 2,276,310 2,150,525 2,023,366 2,169,997 100,798 149,580 - - 16, 639, 618 15,126, 719 11, 792, 357 14,140, 916 9,646,195 14, 033, 868 11, 855, 746 12, 835, 209 105, 767,118 113, 395, 775 102, 079, 720 108, 633, 356 104, 575, 684 110, 733, 034 116, 926, 743 114, 734,106 (12,359,583) (13,731,603) 15, 295, 255 (15, 295, 255) 1,421,521 74,294 14, 434, 303 (14, 434, 303) 1,734,450 2,243,301 (1,916,451) (9,870,851) (1,168,630) (10,611,090) (10,153,586) (9,332,421) 13, 368,149 14, 206, 860 12, 765, 878 11, 006, 208 10, 276, 970 14, 882, 427 (13,297,918) (14,206,860) (12,765,878) (11,006,208) (10,276,970) (14,882,427) 138,157 19,968 173,397 356,454 1,400 766,470 221,807 - 71,014 47,937 (6,168) 335,618 7,995,000 3,935,000 4,271,100 4,240,000 5,500,000 4,200,000 2,630,000 8,670,000 - - (7,932,132) (3,917,230) (4,200,992) (4,172,380) (5,586,483) - (6,744,723) (8,806,014) - - 8,526,127 9,661,649 9,400,000 7,500,000 7,735,081 6,740,000 9,900,348 11,595,000 8,000,000 19,140,000 60,280 (40,080) (62,842) 353,883 269,088 118,687 205,713 129,606 107,806 8,677,097 9,781,190 10,925,843 11,482,529 8,432,676 11,229,056 6,148,723 12,069,090 8,124,838 20,349,894 $ 3,692,712 $ 2,621,923 $ (1,433,740) $ (2,249,074) $ 6,516,225 $ 1,358,205 $ 4,980,093 $ 1,458,000 $ (2,028,748) $ 11,017,473 13.0% 14.7% 12.0% 11.8% 13.5% 11.8% 13.2% 12.3% 13.2% 13.2% For the fiscal years ended June 30, 2003 and 2004, some rents were included in charges for services and miscellaneous revenue on the Statement of Activities. They have been reclassified to rent on this schedule. "For the fiscal years prior to June 30, 2013, bond issuance costs were included with interest and fees 128 Page 345 of 405 City of Waterloo, Iowa Assessed and Taxable Value of Property Last Ten Fiscal Years For Fiscal Less: Total Taxable Assessment Year Military Total Taxable Total Total Value as a Date Ended Residential Commercial Industrial TIF Other Tax -Exempt Assessed Direct Assessed Percentage of January 1, June 30, Property Property Property Property Property Property Value Tax Rate Value Assessed Value 2004 2006 894,181,940 667,846,702 99,012,385 63,981,335 107,833,856 8,509,114 1,824,347,104 19.15566 2,805,711,189 65.02% 2005 2007 957,337,336 668,759,754 102,622,530 91,641,046 108,515,161 8,409,864 1,920,465,963 18.84580 3,075,559,088 62.44% 2006 2008 965,742,730 680,175,443 101,833,850 95,440,962 106,356,577 8,117,232 1,941,432,330 18.76669 3,133,666,442 61.95% 2007 2009 1,021,046,822 766,647,219 98,127,515 125,534,846 109,339,414 7,908,493 2,112,787,323 18.36687 3,447,851,253 61.28% 2008 2010 1,080,004,413 787,580,318 99,231,835 134,668,232 110,644,404 7,754,888 2,204,374,314 18.30689 3,542,643,298 62.22% 2009 2011 1,119,328,144 786,637,586 99,943,010 136,188,661 106,874,812 7,498,605 2,241,473,608 18.26406 3,566,368,445 62.85% 2010 2012 1,166,201,221 781,318,790 100,090,080 150,383,839 111,996,683 7,253,351 2,302,737,262 18.53335 3,747,030,046 61.45% 2011 2013 1,251,445,651 813,065,056 121,443,090 179,551,015 111,367,841 6,985,742 2,469,886,911 18.20505 3,738,165,467 66.07% 2012 2014 1,316,533,993 800,057,810 122,324,860 183,333,664 111,068,231 6,742,623 2,526,575,935 17.49319 3,762,106,346 67.16% 2013 2015 1,303,730,888 717,175,119 112,118,499 207,637,570 112,027,732 6,558,362 2,446,131,446 17.95159 3,623,346,971 67.51% 2014 2016 1,347,497,993 662,021,833 105,004,150 214,993,747 110,527,435 6,267,608 2,433,777,550 17.76370 3,656,417,436 66.56% Source: Black Hawk County Auditor. Notes: (1) Does not include tax-exempt property. Tax rates are per $1,000 of assessed value. (2) Property tax on machinery and equipment was phased out during the period FYE2001 through FYE2003. 129 Page 346 of 405 City of Waterloo, Iowa Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years Overlapping Rates City of Waterloo Black Hawk County Schools Total Total Total Direct & Fiscal Operating Debt Total City Operating Debt County Operating Debt School Overlapping Year Millage Service Millage Millage Service Millage Millage Service Millage Other Rates 2007 15.47706 3.36874 18.84580 6.83182 0.55784 7.38966 15.33395 1.00000 16.33395 1.34392 43.91333 2008 15.33540 3.43129 18.76669 6.82613 0.58407 7.41020 15.74972 1.00000 16.74972 1.18405 44.11066 2009 15.10748 3.25939 18.36687 6.35616 0.57975 6.93591 15.65725 1.00000 16.65725 1.36422 43.32425 2010 15.01876 3.28813 18.30689 6.12831 0.57689 6.70520 15.45746 1.00000 16.45746 1.33721 42.80676 2011 14.92433 3.33973 18.26406 6.22972 0.44212 6.67184 15.43697 1.00000 16.43697 1.38794 42.76081 2012 15.16068 3.37267 18.53335 5.92415 0.67322 6.59737 15.28141 1.00000 16.28141 1.28109 42.69322 2013 15.03346 3.17159 18.20505 5.59849 0.64144 6.23993 14.80265 1.00000 15.80265 1.33770 41.58533 2014 14.39276 3.10043 17.49319 5.39234 0.62882 6.02116 13.12135 2.60683 15.72818 1.36950 40.61203 2015 14.74920 3.20239 17.95159 5.52447 0.59472 6.11919 13.28631 2.68895 15.97526 1.35851 41.40455 2016 14.50433 3.25937 17.76370 5.43985 1.30832 6.74817 12.92607 2.69825 15.62432 1.34988 41.48607 Source: Black Hawk County Auditor. 130 Page 347 of 405 Employer City of Waterloo, Iowa Principal Taxpayers Current Year and Nine Years Ago 2016 2007 Assessed Percentage of Assessed Percentage of Value Total Assessed Value Total Assessed 1/1/2014 Rank Value 1/1/2005 Rank Value Deere and Company $ 48,943,842 1 1.34% $ 25,245,560 3 0.90% IOC Black Hawk County, Inc. 48,937,500 2 1.34% Waterloo Owner, LLC (Crossroads Mall) 32,155,128 3 0.88% 30,996,870 2 1.10% Equitable Life Assurance in 2003 3 Con Agra k/n/a Hunt Wesson, Inc. 19,951,236 4 0.55% 16,357,690 7 0.58% Ferguson Enterprises, Inc. 18,636,903 5 0.51% 20,654,850 4 0.74% Tyson Fresh Meats (formerly IBP, Inc.) 15,531,098 6 0.42% 19,968,530 5 0.71% Bertch Cabinet Manufacturing 14,746,095 7 0.40% 15,518,840 8 0.55% Howard L. Allen Investments, Inc. 14,606,889 8 0.40% -- Walmart Stores 12,019,959 9 0.33% VGM Management 10,640,866 10 0.29% MidAmerican Energy 105,839,708 1 3.77% Qwest Corporation (formerly US West) 16,408,174 6 0.58% Banco Mortgage Company 10,487,300 9 0.37% Menard Inc 9,882,890 10 0.35% Total $236,169,516 6.46% $271,360,412 9.32% Source: Official Bond Statements prepared by Speer Financial, Inc. 131 Page 348 of 405 City of Waterloo, Iowa Property Tax Levies and Collections Last Ten Fiscal Years Percent of Percent of Assessment Fiscal Year Current Current Tax Delinquent Total Total Tax Date Ended Total Tax Collections Tax Tax Collections January 1, June 30, Tax Levy Collections To Tax Levy Collections Collections To Tax Levy 2005 2007 $ 33,117,028 33,098,938 99.95% $ 20,019 $33,118,957 100.01% 2006 2008 33,302,685 33,292,118 99.97% 22,716 33,314,834 100.04% 2007 2009 35,238,473 35,092,505 99.59% 40,319 35,132,824 99.70% 2008 2010 36,645,462 36,619,212 99.93% 16,989 36,636,201 99.97% 2009 2011 37,312,210 37,186,887 99.66% 34,746 37,221,633 99.76% 2010 2012 38,703,447 38,469,916 99.40% 20,895 38,490,811 99.45% 2011 2013 40,620,062 40,275,404 99.15% 18,966 40,294,370 99.20% 2012 2014 39,993,210 39,763,526 99.43% (72,698) " 39,690,828 99.24% 2013 2015 39,200,603 38,901,557 99.24% (362,370) " 38,539,187 98.31% 2014 2016 38,480,720 38,405,051 99.80% (176,170) " 38,228,881 99.35% Source: Black Hawk County Auditor's office. Current year tax collections can exceed the total tax levy in certain instances, such as when property valuation adjustments are made after the tax levy certifications are completed. Information regarding changes to levies and the years that delinquent payments are attributable is not available to the City. " A number of property valuation appeals for the valuation at the January 1, 2011 assessment date were settled during the fiscal years ended June 30, 2014, 2015 and 2016 which resulted in refunds owed for prior taxes paid on those properties. Black Hawk County netted those refunds from delinquent taxes paid to the City, resulting in negative delinquent tax collections. 132 Page 349 of 405 Business -Type Activities Governmental Activities a co a) Tz 0) O O N C E U a U 0) 0 o — i 0) 0) 0) E o E ~ 0_ > 0 C9 _ C 0 .2 N N (6 � 0) 2 O = Om 5 U 0) .0 J N 0) O 03 C 0) 03 0 o Q 'Q Z Q 0 _ C 03 .0 N 0) (6 � 01 O °Om 0) o 0 0 LL 00) CMO CO W CO 0 0) 0 M CO CO CO V V V M V V O 0 0 0 0 0 0 0 0 0 M OCO W COW LO CO M ✓ V M M M M M M M M In 0 CO 0 CO I� 0) 0 0 N CO 0) V CO (O V CO In N 0 0 V LO 0 LO 0 0 N • 0 (MO (MO 0) CO- O r co- r In - V N N LO O (O V 0) 0) 0) 0) 0) 0) 0) 0) 0) O EFT LO •Cr o o 0 0 0 l!) 0 (CO OO CO 00 O O O O O 0 co V N co O LO- O LO- In r 0) V 0) N In In CO In NV CO CO CO N (O N.-0) I: M N O 0) r V co - CO V N M0) I� r N (O V (O r- O 0) O V N E)O N co 0) V I� co co Loi O 0 M r (NO O� 0 lf) 0 0)0 CO CO I� 0 CO V N CO V V O O V N LO- CO - C,1 N N N N N N EFT $ 2,708,707 CO (O (O 0 0) • N 0) 0 (O 0 N V 0) M 0) CO 0 N LO- (O V V M 0) V 0 N CO (O M 0) co CO In N 0 0) CO- N N N N N N o o o o O O N 0 N M uT $ 63,940,000 O V V O O 0) M O N co N N 0) 0 co CO I� N 0) r 0) CO- CO- N (CLO M I� O (O In r 7)(O N co 0) 1---O O r co 0) N co CO LO - LO 0 0 0 0 0 0 0 I� O O 0 N—N M V LO 0 O O 0 0 0 0 0 0 0 0 N N N N N N N N N N Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Page 350 of 405 City of Waterloo, Iowa Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Percentage of General Total Assessed Fiscal Obligation Assessed Value Value Per Year Bonds of Property of Property Capita* 2007 $ 79,019,518 $ 3,075,559,088 2.57% $ 1,149 2008 80,518,995 3,133,666,442 2.57% 1,171 2009 81,200,822 3,447,851,253 2.36% 1,181 2010 83,832,977 3,542,643,298 2.37% 1,219 2011 85,835,630 3,566,368,445 2.41% 1,255 2012 89,522,781 3,747,030,046 2.38% 1,302 2013 90,366,627 3,738,165,467 2.42% 1,321 2014 91,480,632 3,762,106,346 2.43% 1,337 2015 93,637,457 3,623,346,971 2.58% 1,369 2016 99,096,543 3,656,417,436 2.71% 1,449 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. * Population data can be found in the Schedule of Demographic and Economic Statistics. 134 Page 351 of 405 City of Waterloo, Iowa Direct and Overlapping Governmental Activities Debt As of June 30, 2016 Governmental Unit Estimated Estimated Percentage Share of Debt Applicable Overlapping Outstanding To City* Debt City of Waterloo direct debt $ 77,831,781 100.00% $ 77,831,781 Overlapping: Black Hawk County $ 37,940,000 43.94% 16,670,836 Hudson Community Schools 0 0.00% - Hawkeye Community College 3,680,000 25.50% 938,400 Subtotal, overlapping debt $ 41,620,000 $ 17,609,236 Total direct and overlapping debt $ 119,451,781 $ 95,441,017 Source: Black Hawk County Auditor Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Waterloo. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. *The percentage of overlapping debt applicable is estimated using net taxable property values. Applicable percentages were estimated by determining the portion of the County's net value that is within the government's boundaries and dividing it by the County's total value. Prep Notes Only: Source: Black Hawk County Auditor Helen R. Steffen 09-14-16 Taxable val for DS excl G&E BHCo 5,352,884,257 Waterloo 2,728,994,072 135 Page 352 of 405 City of Waterloo, Iowa Legal Debt Margin Information Last Ten Fiscal Years 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Debt Limit $ 153,777,954 $ 156,683,322 $ 172,392,563 $ 178,318,422 $ 178,318,423 $ 187,351,502 $ 186,908,273 $ 188,105,317 $ 181,167,349 $ 182,820,872 Total net debt applicable to limit 81,728,225 82,750,081 84,593,090 85,978,443 88,642,530 91,810,117 92,890,939 93,762,629 95,698,764 101,030,606 Legal debt margin $ 72,049,729 $ 73,933,241 $ 87,799,473 $ 92,339,979 $ 89,675,893 $ 95,513,435 $ 94,503,961 $ 94,342,688 $ 85,468,585 $ 81,790,266 Total net debt applicable to the limit as a percentage of debt limit 53.15% 52.81% 49.07% 48.22% 49.71% 49.02% 49.44% 49.44% 52.82% 55.26% Legal Debt Margin Calculation for Fiscal Year 2016 Estimated actual valuation (assessed) as of January 1, 2014 $ 3,656,417,436 Debt limit (5% of total estimated actual valuation) 182,820,872 Debt applicable to debt limit: General obligation bonds 99,096,543 General obligation capital loan notes Other debt 1,934,063 Total net debt applicable to limit 101,030,606 Legal debt margin $ 81,790,266 Note: Under the State of Iowa Constitution, the city's outstanding general obligation debt should not exceed 5% of total assessed property value. 136 Page 353 of 405 City of Waterloo, Iowa Sewer Revenue Bond Coverage Last Ten Fiscal Years Less: Applicable Net Revenue Debt Fiscal Gross Operating Available for Service Year Revenue Expenses Debt Service Requirements Coverage 2007 9,761,167 4,580,852 5,180,315 3,020,198 1.7152 2008 10,121,735 5,051,048 5,070,687 2,099,173 2.4156 2009 10,030,590 5,070,016 4,960,574 2,038,173 2.4338 2010 11,195,472 5,266,284 5,929,188 2,079,198 2.8517 2011 13,468,610 7,041,089 6,427,521 2,059,323 3.1212 2012 13,217,083 6,450,294 6,766,789 1,655,847 4.0866 2013 12,312,670 6,803,784 5,508,886 1,659,883 3.3188 2014 12,863,347 8,069,660 4,793,687 1,259,403 3.8063 2015 12,716,670 9,894,071 2,822,599 1,233,703 2.2879 2016 14,261,375 11,319,925 2,941,450 592,413 4.9652 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Gross revenue includes both operating and non-operating revenue. Operating expenses do not include interest, depreciation or amortization of bond issue costs. 137 Page 354 of 405 City of Waterloo, Iowa Demographic and Economic Statistics Last Ten Calendar Years Per Capita Personal Personal Median Unemployment School Year Population' Income Income2 Age' Rate3 Enrollment4 2005 68,747 $ 2,117,888,829 30,807 35.9 5.3% 10,391 2006 68,747 2,216,265,786 32,238 35.9 4.3% 10,192 2007 68,747 2,326,329,733 33,839 35.9 4.3% 10,039 2008 68,747 2,396,932,902 34,866 35.9 4.7% 10,069 2009 68,747 2,475,029,494 36,002 35.9 6.8% 10,150 2010 68,406 2,501,812,638 36,573 35.9 7.3% 10,020 2011 68,406 2,524,386,618 36,903 35.9 7.1% 10,103 2012 68,406 2,681,173,170 39,195 35.9 6.5% 10,239 2013 68,406 2,827,835,634 41,339 35.7 5.6% 10,483 2014 68,406 2,857,250,214 41,769 35.5 6.5% 10,611 2015 68,406 2,817,779,952 41,192 35.8 5.4% 10,445 N/A = Not available. Sources: 1 2000 and 2010 U.S. Census 2 U.S. Department of Commerce, Bureau of Economic Analysis 3 Iowa Workforce Development 4 Waterloo Community Schools 138 Page 355 of 405 Employer City of Waterloo, Iowa Principal Area Employers Current Year and Nine Years Ago 2015 2006 Percentage Percentage of Total City of Total City Employees Rank Employment Employees Rank Employment Deere & Company 5,600 1 17.02% 5,400 1 15.93% Wheaton Franciscan Health Care * 3,060 2 9.30% 2,910 2 8.58% Tyson Fresh Meats (formerly IBP, Inc.) 2,500 3 7.60% 2,500 3 7.37% University of Northern Iowa 1,740 4 5.29% 1,780 4 5.25% Unity Point Health(Allen Memorial Hospital) 1,615 5 4.91% 1,770 5 5.22% Waterloo Community Schools 1,610 6 4.89% 1,670 6 4.93% Hy -Vee 1,545 7 4.70% 980 9 2.89% Wal-Mart 1,045 8 3.18% -- Target Distribution Center 860 9 2.61% CBE Companies 800 10 2.43% -- -- Bertch Cabinet Manufacturing -- -- -- 1,500 7 4.42% Omega Cabinets 1,350 8 3.98% GMAC 735 10 2.17% Total 20,375 61.93% Source: Official Bond Statements from Speer Financial, Inc. * Formerly known as Covenant Medical Center 139 19,860 54.60% Page 356 of 405 City of Waterloo, Iowa Full -Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Public Safety Police 130.0 128.0 131.0 135.0 139.0 138.0 131.0 130.0 130.0 130.0 Fire 115.0 118.0 113.0 116.5 114.5 112.5 109.5 108.5 106.5 109.5 Building Inspection 15.0 16.0 15.0 15.5 10.5 12.5 12.5 12.5 13.5 13.5 Public Works City Engineer 19.0 19.0 20.0 19.0 18.0 20.0 20.0 20.0 20.0 20.0 Traffic 13.5 12.0 13.0 12.0 12.0 12.0 15.0 16.0 16.0 14.0 Central Garage 9.5 10.0 10.0 8.0 9.0 9.0 9.0 10.0 10.0 9.0 Street 36.0 34.0 40.0 39.0 37.0 38.0 36.0 34.0 37.0 35.0 Airport 5.5 5.5 5.5 5.5 5.5 6.0 5.0 6.0 6.0 6.0 Health & Social Services Human Rights 3.0 2.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Culture & Recreation Cultural & Arts 10.0 12.0 13.5 13.5 14.0 14.5 13.0 11.0 13.0 12.0 Library 25.5 24.0 24.5 25.0 24.5 24.5 25.0 25.0 24.5 24.0 Leisure Services 37.0 39.0 41.0 40.0 40.0 39.0 36.0 40.0 43.0 42.0 Community & Economic Development Community Planning & Development 25.0 24.0 24.0 24.0 24.0 24.0 22.0 23.0 23.0 22.0 General Government Mayor's Office Administrative Services/MIS City Clerk & Finance City Attorney/Code Enforcement Human Resources Facilities Maintenance 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 2.0 13.0 13.0 13.0 13.0 13.0 13.0 14.0 14.0 12.0 12.0 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 6.0 3.0 3.0 2.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 4.0 4.0 4.0 Waste Management Services Sewer 30.1 30.1 30.1 29.0 32.0 35.0 33.9 41.0 39.0 40.0 Sanitation 13.9 13.9 13.9 13.0 15.0 14.0 17.1 13.0 17.0 13.0 Total 511.5 511.0 520.0 521.5 521.5 525.5 511.5 517.5 524.0 521.0 Source: City Human Resources Department records. 140 Page 357 of 405 Function/Program City of Waterloo, Iowa Operating Indicators by Function/Program Last Ten Fiscal Years (Page 1 of 2) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Public Safety Police * Traffic accidents 1,788 1,942 2,141 1,941 1,712 1,630 1,598 1,839 1,726 1,607 Cases 13,928 14,468 13,740 13,411 12,079 11,591 11,344 11,298 11,111 10,110 Citations 11,651 9,816 6,781 7,983 6,851 7,271 6,448 6,989 5,060 4,917 Calls for service 70,037 73,690 75,932 82,044 81,110 80,872 75,626 77,161 67,717 61,944 Total arrests 5,771 6,176 5,506 5,590 5,243 5,244 4,984 4,931 4,728 4,004 Fire Fire responses 5,759 6,223 5,208 4,885 4,238 4,307 4,622 5,011 5,129 5,232 Ambulance responses 7,030 7,503 7,234 6,928 5,328 6,062 6,997 6,729 6,830 6,650 Building Inspection Construction permits issued 9,124 8,961 8,143 8,657 9,386 8,012 8,682 9,969 10,327 10,620 Construction value of permits $ 181,082,614 $ 119,894,709 $ 74,920,243 $ 82,650,598 $ 103,199,063 $ 124,803,841 $ 91,192,766 $ 101,677,108 $ 100,224,478 $ 127,513,038 Public Works Engineering Street reconstruction (miles) 1.94 1.57 2.55 2.45 1.98 2.90 3.08 3.15 1.59 2.61 Street resurfacing (miles) 17.60 13.57 18.63 12.42 14.15 12.64 14.05 12.21 18.63 12.53 Street Department Tons of salt used for streets 4,505.35 6,185.86 5,506.97 6,043.06 5,012.05 4,816.00 5,700.00 5,162.00 4,217.00 3,024.00 Man hours for road maintenance 72,800 66,560 71,448 71,448 72,800 68,640 67,345 66,650 67,320 79,357 Airport Commercial Enplanements 33,507 27,026 25,467 22,255 23,206 22,173 19,897 21,573 26,170 27,325 Aircraft take -offs and landings 30,644 25,979 25,921 22,738 20,772 21,521 20,589 19,109 19,550 21,037 Based aircraft 98 101 100 100 101 101 104 104 74 75 Health & Social Services Human Rights Civil Rights complaints New cases opened 74 109 62 74 78 95 106 64 66 50 Cases closed 58 63 182 88 76 103 59 43 100 50 Active cases at year-end 214 262 126 109 113 103 154 177 143 142 Culture & Recreation Leisure Services SportsPlex Members N/A N/A N/A N/A N/A N/A N/A 2594 4,450 4,965 Young Arena facility usage Event Visitors 133,540 142,278 121,324 118,286 118,089 127,508 118,639 119,903 100,064 100,913 Recreational Visitors 139,824 138,285 138,541 143,370 153,018 164,315 174,780 186,384 189,121 189,586 Sports - youth programs 4,517 4,677 5,034 5,117 5,691 5,720 5,451 5,571 5,623 5,689 Sports -adult programs 1,277 1,261 1,461 1,665 1,621 1,620 1,588 1,598 1,617 1,543 Pool attendance 41,580 40,789 40,561 41,743 42,883 44,741 39,611 37,603 33,866 34,733 Golf rounds 95,851 86,268 93,932 95,898 87,173 97,032 81,218 75,737 74,891 76,137 Annual flowers grown for parks 21,768 21,765 22,880 28,008 24,984 22,488 23,304 - - Public Library Total Circulation 427,921 413,525 426,593 441,746 419,333 424,435 405,341 422,204 470,786 446,467 Total Library Visits 261,261 259,144 241,539 274,903 290,161 207,597 263,261 271,603 278,431 253,929 Waterloo Center for the Arts In House Visitors 99,097 104,499 125,351 118,541 113,411 119,404 125,958 118,970 128,140 122,334 Events, meetings, and programs 1,268 1,479 1,839 1,683 1,625 1,578 1,563 1,074 1,103 1,003 141 Page 358 of 405 Function/Program City of Waterloo, Iowa Operating Indicators by Function/Program Last Ten Fiscal Years (Page 2 of 2) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Community & Economic Development Planning and Zoning Planning commission agenda items 84 69 50 54 77 65 72 91 100 86 CURA applications received ** 51 35 46 29 20 12 24 30 41 31 CURAimprovementsvalue $ 13,391,834 $ 7,346,601 $ 5,972,779 $ 12,309,630 $ 2,063,995 $ 9,307,075 $ 2,776,663 $ 11,368,905 $ 7,856,518 $ 13,451,612 CLURA applications received*** 6 19 58 69 41 CLURA improvments value $ $ $ $ $ $ 1,249,100 $ 4,385,349 $ 14,418,617 $ 15,057,131 $ 8,849,239 Community Development Down payment assistance 36 41 50 57 12 22 10 3 4 8 Home buyer education 168 193 183 147 - - - - - - Owner -occupied homes rehabilitated 28 46 36 10 32 46 31 42 26 24 Emergency repairs (including roofs) 36 34 38 44 39 45 49 37 33 34 Demolitions (residential & commercial) 8 19 20 27 11 20 18 21 13 Housing Actual vouchers 961 1,032 1,007 1,003 994 996 1,005 931 937 975 Public housing units 50 49 50 48 50 50 50 50 50 50 Family self sufficiency participants 65 75 59 49 53 54 47 36 31 34 Sewer Sewer system customers 25,637 25,843 25,769 Source: Various city departments * Statistics for Police Department are for the calendar year ending within the fiscal year shown. ** Consolidated Urban Revitalization Area. ***City Limits Urban Revitalization Area Started FY12 # Door counter was broken for several months, so not all visitors could be counted. N/A - not available 25,565 25,450 25,707 25,393 26,102 25,584 26,498 142 Page 359 of 405 Function/Program City of Waterloo, Iowa Capital Asset Statistics by Function/Program Last Ten Fiscal Years 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Fire* Stations 7 7 7 7 7 7 7 7 7 7 Trucks and special vehicles 30 30 32 32 32 34 31 29 ** 29 30 Public Works Miles of streets - paved 354 354 356 357 364 364 364 364 364 360 Miles of streets - unpaved 74 74 73 73 72 72 72 72 72 68 Street lights 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,807 1,807 1,807 Traffic Signals 198 198 198 197 200 200 200 197 198 198 Airport runway lengths Runway 12/30 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 Runway 18/36 6,002 6,002 6,002 6,002 6,002 6,002 6,002 6,002 6,002 6,002 Runway 6/24 5,403 5,403 5,403 5,403 5,403 5,403 5,403 5,403 5,403 5,403 Culture & Recreation City parks 48 48 48 48 48 48 48 48 48 48 Golf courses 3 3 3 3 3 3 3 3 3 3 Swimming pools 2 2 2 2 2 2 2 2 2 2 Softball diamonds 23 23 23 23 23 23 23 23 23 23 Baseball diamonds 8 8 8 6 6 6 6 6 6 6 Baseball stadium 1 1 1 1 1 1 1 1 1 1 Softball complexes 2 2 2 2 2 2 2 2 2 2 Tennis courts 27 27 27 27 27 27 27 27 27 27 Ice arena 1 1 1 1 1 1 1 1 1 1 Soccer complex 1 1 1 1 1 1 1 1 1 1 Exposition plaza 0 0 1 1 1 1 1 1 1 1 Skatepark 1 1 1 1 1 1 1 1 1 1 Dog park 0 0 1 1 1 1 1 1 1 1 Amphitheater 0 0 0 0 0 1 1 1 1 1 Splash Park 0 0 0 0 0 1 1 1 1 1 Indoor sports & fitness faciity N/A N/A N/A N/A N/A N/A N/A N/A 1 1 Center for the Arts collection size 2,494 2,794 3,153 3,362 3,766 4,178 4,352 4,682 5,102 5,498 Library collection size 190,092 192,678 200,246 168,295 172,580 163,247 161,462 164,486 138,540 138,305 Sewer Miles of sanitary sewer 356 356 356 356 356 356 356 357 358 368 Source: Various city departments * Effective July 1, 2007, fire station at the Airport being maintained by Airport maintenance personnel ** Added boats N/A - not available 143 Page 360 of 405 City of Waterloo, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2016 Federal Grantor/Pass-Through Grantor/Program Title Pass -Through Federal Amount Entity Identifying CFDA Provided to Federal Number Number Subrecipients Expenditures Department of Commerce Direct: Economic Adjustment Assistance: Disaster Recovery 5-79-05007 11.307 $ - $ 3,050 Department of Housing and Urban Development Direct: Community Development Block Grants/Entitlement Grants HOME Investments Partnerships Program Title 1, VA -HUD Independent Agencies Appropriations Act for FY 2008, PL 110-161 B -15 -MC -190008 14.218 M -15 -DC -190206 14.239 B -08 -SP -IA -0568 14.251 108,331 167,814 1,432,549 552,036 71,566 Fair Housing Assistance Program -State and Local FF207k0270M 14.401 - 2,608 Fair Housing Assistance Program -State and Local FF207K137014 14.401 - 13,246 Subtotal - 15,854 Public and Indian Housing IA050001043 14.850 - 156,371 Public and Indian Housing IA05003 14.850 - 86,364 Subtotal - 242,735 Section 8 Housing Choice Vouchers IA05VO+CE 14.871 - 4,924,155 Public Housing Capital Fund Public Housing Capital Fund Subtotal Total direct IA05P05050114 14.872 IA05P05050115 14.872 21,395 21,047 42,442 276,145 7,281,337 Indirect: Pass Through Iowa Department of Economic Development: Community Development Block Grants/State's Program 08-DRH-011 14.228 12,378 08-DRH-211 14.228 2,286,299 2,521,704 Disaster Recovery Infrastructure 08 -DRI -078 14.228 - 813,758 08 -DRI -277 14.228 2,230,421 Total indirect 2,286,299 5,578,261 Total Department of Housing and Urban Development 2,562,444 12,859,598 Department of Interior Indirect: Pass Through Sios and Smokestacks: National Heritage Area Federal Financial Assistance 15.939 - 500 Department of Justice Direct: Bulletproof Vest Partnership Program N/A 16.607 - 7,525 Edward Byrne Memorial Justice Assistance Grant Program 2012 -DJ -BK -0617 16.738 - 23,531 Edward Byrne Memorial Justice Assistance Grant Program 2013 -DJ -BK -0604 16.738 - 16,492 Edward Byrne Memorial Justice Assistance Grant Program 2013 -DJ -BK -0217 16.738 - 11,034 Edward Byrne Memorial Justice Assistance Grant Program 2013 -DJ -BK -0713 16.738 - 1,408 Subtotal - 52,465 Total direct - 59,990 Indirect: Pass Through Crime Victims Assistance Division, Federal Violence Against Women Act Contract Pass Through Governor's Office of Drug Control Policy, Public Safety Partnership and Community Policing Grants Edward Byrne Memorial Justice Assistance Grant Program Total indirect Total Department of Justice VW -16 -92 -CJ 16.588 - 35,113 14-HotSpots-Enforcement-02 16.710 4,406 11 -JAG -58456 16.738 (Continued) 144 140,848 15,587 211,750 145,254 262,450 145,254 322,440 Page 361 of 405 City of Waterloo, Iowa Schedule of Expenditures of Federal Awards (Continued) Year Ended June 30, 2016 Federal Grantor/Pass-Through Grantor/Program Title Pass -Through Entity Identifying Number Federal CFDA Number Amount Provided to Subrecipients Federal Expenditures Department of Transportation Direct: Federal Aviation Administration: Airport Improvement Program Total direct Indirect: Federal Highway Administration Pass Through Iowa Department of Transportation: Highway Planning and Construction Subtotal 20.205 National Highway Traffic Safety Administration Pass Through Iowa Department of Public Safety Governor's Traffic National Priority Safety Programs Subtotal Total indirect Total Department of Transportation U.S. Equal Employment Opportunity Commission Direct: Employment Discrimination Title VII of the Civil Rights Act of 1964 Employment Discrimination Title VII of the Civil Rights Act of 1964 Total U.S. Equal Employment Opportunity Commission National Foundation on the Arts and the Humanities Indirect, National Endowment for the Humanities Pass Through Iowa Arts Council Promotion of the Humanities Federal/State Partnership Environmental Protection Agency Direct: Brownfield Assessment & Cleanup Cooperative Agreements Brownfield Assessment & Cleanup Cooperative Agreements Total Environmental Protection Agency Department of Homeland Security Indirect: Pass Through Iowa Homeland Security and Emergency Management Division: Disaster Grants - Public Assistance (Presidentially Declared Disasters) Staffing for Adequate Fire & Emergency Response (SAFER) Total Department of Homeland Security Total Expenditures of Federal Awards See Notes to Schedule of Expenditures of Federal Awards. 3-19-0094-43 3-19-0094-44 NHSX-63-6(69)--3H-07 STP -U-8155(711)--70-07 STP -U-8155(714)--70-07 STP -E -8155(723)--8V-07 SRTS-U-8155(728)--8U-07 STP -U -8155(729)--8U-07 STP -U-8155(731)--70-07 TAP -U-8155(741)--81--07 STP -U-8155(744)--70-07 20.106 20.106 20.205 20.205 20.205 20.205 20.205 20.205 20.205 20.205 20.205 PAP-15-405d-M6OT, Task 57 20.616 PAP-16-405d-M6OT, Task 48 20.616 EECCN130125FFY13 30.001 EECCN130125FFY14 30.001 OSP 1420 FY15 BF -97731101-0 BF -97731201-0 45.129 66.818 66.818 013-82425-00 DR 4187 97.036 EMW-2014-FH-00136 97.083 145 1,012 1,004,112 1,005,124 4,587 16,974 636 66,093 64,860 75,521 1,488,689 22,861 33,671 1,773,892 15,748 40,002 55,750 1,829,642 2,834,766 15,072 22,086 37,158 17,027 1,188 522 1,710 8,250 51,735 59,985 $ 2,707,698 $ 16,136,234 Page 362 of 405 City of Waterloo, Iowa Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2016 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Waterloo, Iowa (the City). The schedule of expenditures of federal awards does not include the federal grant activity of the City's discretely presented component units. All federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies are included in this schedule. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Program expenditures include only amounts subject to reimbursements from the grantor agency or program income; thus, they are net of local matching. Note 2. Significant Accounting Policies Expenditures reported on the schedule are reported on the accrual basis of accounting whereas expenditures/expenses are recognized in the accounting period in which the cost is incurred. Such expenditures are recognized following the cost principles contained in OMB Circular A-87 or Uniform Guidance, as appropriate, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Note 4. Total Expenditures by Program The total expenditures for the Edward Byrne Memorial Justice Assistance Grant Program, CFDA No. 16.738 is $264,215. Note 5. Indirect Cost Rate The City has elected not to use the 10 percent deminimis indirect cost rate allowed under the Uniform Guidance. 146 Page 363 of 405 City of Waterloo, Iowa Summary Schedule of Prior Audit Findings Year Ended June 30, 2016 Finding Corrective Action Plan Status or Other Explanation Other Findings Related to Required Statutory Reporting 15 -IV -H The Grants, Special Revenue Fund, Community Development Block Grant, Special Revenue Fund, Federal Aviation and Capital Improvements, Capital Projects Fund had deficit fund balances as of June 30, 2015. 15 -IV -J The City did not amend the airport ordinance to repeal the positive cash balance requirement. Through June 30, 2015, the accumulative cash deficit totaled $580,771. 147 Not corrected See corrective action plan at 16 -IV -H. Not corrected See corrective action plan at 16 -IV -J. Page 364 of 405 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor's Report To the Honorable Mayor and Members of City Council City of Waterloo, Iowa Waterloo, Iowa RSM RSM US LLP We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Waterloo, Iowa, (the City) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated January 30, 2017. As explained in Note 22 to the basic financial statements, the Waterloo Water Works adopted GASB Statement Nos. 68 and 71 which restated beginning net position, net pension liability and deferred outflow of resources. Our report includes a reference to other auditors who audited the financial statements of the Waterloo Water Works as of and for the year ended December 31, 2015 and the Waterloo Convention & Visitors Bureau, Inc. as of and for the year ended June 30, 2016, both discretely presented component units, as described in our report on the City's financial statements. This report does not include the results of the other auditor's testing of internal control over financial reporting or compliance and other matters that are reported separately by those auditors. The financial statements of Waterloo Convention & Visitors Bureau, Inc. were not audited in accordance with Government Auditing Standards. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING 148 RSM US LLP is the U.S. member form of RSM International. a global network of independent audit, tax, and consulting firms. Visit rsmus,com/aboutus for more information regardinge. 365 of 405 RSM International. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a deficiency in internal control in the accompanying schedule of findings and questioned costs as item 2016-001 that we consider to be a significant deficiency. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. However, we noted immaterial instances of noncompliance or other matters that are described in Part IV of the accompanying schedule of findings and questioned costs. Comments involving statutory or other legal matters about the City's operations for the year ended June 30, 2016 are based exclusively on the knowledge obtained from procedures during our audit of the basic financial statements of the City. Since our audit was based on tests and samples, not all transactions that might have had an impact on the comments were necessarily audited. The comments involving statutory and other legal matters are not intended to constitute legal interpretation of those statues. The City's Response to Findings The City's responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the City's responses and, accordingly, we express no opinion on them. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. s1-1 vs 12? Davenport, Iowa January 30, 2017 149 Page 366 of 405 Report on Compliance For Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance Independent Auditor's Report To the Honorable Mayor and Members of the City Council City of Waterloo, Iowa Waterloo, Iowa RSM RSM US LLP Report on Compliance for the Major Federal Program We have audited the City of Waterloo, Iowa's (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2016. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Scope The City's basic financial statements include the operations of the Waterloo Water Works and the Waterloo Convention & Visitors Bureau, Inc. discretely presented component units which did not have a single audit performed for their fiscal years ended December 31, 2015 and June 30, 2016, respectively. Our audit, described below, does not include the operations of the Waterloo Water Works or the Waterloo Convention and Visitors Bureau, Inc. because these discretely presented component units were audited by other auditors. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the City of Waterloo, Iowa's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City's compliance. THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING 150 RSM US LLP is the U.S. member form of RSM International. a global network of independent audit, tax, and consulting firms. Visit rsmus,com/aboutus for more information regardinge. 367 of 405 RSM International. Opinion on each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016. Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of Uniform Guidance. Accordingly, this report is not suitable for any other purpose. s1-1 vs 12? Davenport, Iowa January 30, 2017 151 Page 368 of 405 City of Waterloo, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2016 I. Summary of the Independent Auditor's Results Financial Statements Type of auditors report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? Significant deficiencies identified? Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: Material weakness(es) identified? Significant deficiencies identified? Type of auditors report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Section 2 CFR 200.516(a)? Identification of major programs: CFDA Number Name of Federal Program or Cluster 14.218 Community Development Block Grants 20.106 Airport Improvement Program 20.205 Highway Planning & Construction Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? (Continued) 152 ❑ Yes ❑ No ❑.r Yes ❑ None Reported ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ None Reported ❑ Yes ❑ No ❑ Yes ❑ No Page 369 of 405 City of Waterloo, Iowa Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2016 II. Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance With Generally Accepted Government Auditing Standards A. Significant Deficiency in Internal Control 2016-001 Finding: The City did not have adequate procedures in place across all departments to ensure that retainage payable is complete and accurate at year-end. Condition: One of 27 subsequent disbursements tested within the aggregate non -major funds had retainage of $216,402 that was not properly accrued as retainage payable at year-end. The related project was approved for the CDBG Disaster Relief grant; therefore, the related federal receivable and expenditures had not been properly recorded either. An adjustment was subsequently made by the City to properly include this retainage in the financial statements and schedule of expenditures of federal awards. Context: Pervasive to all expenditure accounts and to retainage payable balances. Effect: Potential misstatement of retainage payable balances and related expenditures. Cause: The project was being monitored by a department that is not familiar with the requirements of recording retainage at year-end. Recommendation: We recommend the City implement procedures across all departments to ensure all retainage has been properly accounted for and recorded in the City's financial statement as of year-end. Corrective Action Plan: The City will implement procedures to more closely monitor contracts with retainage for all City departments. B. Compliance findings None reported. Ill. Findings and Questioned Costs for Federal Awards A, Internal Control None reported. B. Compliance Findings None reported. IV. Findings Related to Statutory Reporting 16 -IV -A Certified Budget Expenditure/expenses during the year ended June 30, 2016, did not exceed the budgeted amounts. 16 -IV -B Questionable Disbursements No questionable disbursements were noted. 16 -IV -C Travel Expenses No expenditures of City money for travel expenses of spouses of City officials or employees were noted. 16 -IV -D Business Transactions No material business transactions between the City and City officials or employees were noted. 153 Page 370 of 405 City of Waterloo, Iowa Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2016 16 -IV -E Bond Coverage Surety bond coverage of City officials and employees is in accordance with statutory provisions. 16 -IV -F Council Minutes and Resolutions No instances of noncompliance with the council minutes and resolutions. 16 -IV -G Deposits and Investments No instances of noncompliance with the deposit and investment provisions of Chapter 12B and 12C of the Code of Iowa and the City's investment policy were noted. 16 -IV -H Deficit Balances Finding: The following funds had deficit balances as of June 30, 2016: Grants, Special Revenue Community Development Block Grant, Special Revenue Federal Aviation Agency Projects, Special Revenue Capital Improvements, Capital Projects $ 1,882,864 215,967 380,200 1,815,963 Recommendations: The City should investigate alternatives to eliminate these deficits in order to return the funds to sound financial positions. Response and Corrective Action Plan: The Grants, Special Revenue Fund reported a deficit fund balance due to timing delays in receiving grant reimbursements. Most grants that the City receives require the City request and receive reimbursement from the granting agencies only after the City has expended the funds. This creates a temporary deficit in the funds. Because the City's books are maintained on an accrual basis, expenses are recorded for invoices that may not be paid until after year-end. The City can not request reimbursements until after the invoices are paid, creating temporary timing deficits. The City continues to investigate alternatives for shortening the turnaround time between spending grant funds and receiving reimbursements where possible. 16 -IV -1 Revenue Bonds No instances of noncompliance noted regarding the provisions of the revenue bond indentures. Information required by sewer revenue bond resolutions is reported in the statistical section. 16 -IV -J Airport Ordinance Finding: The City adopted ordinance number 4400 on December 13, 1999 which established an Airport Board of Directors and requires the Board to "Maintain a positive cash balance at all times in airport operations." Airport operations are accounted for in the General Fund (Fund 010), Airport Commission Department (Department number 29), Airport Administration Activity (Activity number 7700). Through June 30, 2016, the accumulative cash deficit totaled $546,618. Recommendations: To ensure the City is in compliance with its own ordinances, we recommend that the City either provide airport operations with additional cash resources to enable it to achieve and maintain a positive cash balance or amend the ordinance to repeal the positive cash balance requirement. Response and Corrective Action Plan: It is the City's intent at this time to continue to require the positive cash balance, although City management realizes that the Airport may not be able to maintain that balance due to current economic conditions. 154 Page 371 of 405 City of Waterloo, Iowa Corrective Action Plan Year Ended June 30, 2016 Current Anticipated Date Number Comment Corrective Action Plan of Completion Contact Person Findings Related to the Financial Statement Audit 2016-001 The City does not have adequate procedures across all departments in place to ensure that retainage payable is complete and accurate at year-end. Other Findings Related to Required Statutory Reporting 16 -IV -H The Grants, Special Revenue Fund, Community Development Block Grant, Special Revenue Fund, Federal Aviation Agency Projects, Special Revenue Fund and Capital Improvements, Capital Projects Fund had deficit fund balances as of June 30, 2016. 16 -IV -J The City did not amend the airport ordinance to repeal the positive cash balance requirement. Through June 30, 2016, the accumulative cash deficit totaled $546,618. See corrective action plan at 2016-001 See corrective action plan at 16 -IV -H. See corrective action plan at 16 -IV -J. 155 June 2017 June 2017 June 2017 Chief Financial Officer Chief Financial Officer Chief Financial Officer Page 372 of 405 Page 373 of 405 CITY OF WATERLOO Council Communication Review of Waste Management Department budget. City Council Meeting: 2/20/2017 Prepared: REVIEWERS: Department Reviewer Action Date Waste Management Felchle, Kelley Approved 2/16/2017 - 3:12 PM ATTACHMENTS: Description Type ❑ WMSD FY18 Budget Presentation Backup Material Page 374 of 405 moo on mom=e Page 375 of 405 Our Mission 01' • "The Mission of Waste Management Services Department (WMSD) is "to properly operate and maintain the collection system infrastructure, transporting and treating wastewater without disruption or overflows, while meeting the needs of Waterloo's citizens, protecting surface and groundwater resources and complying with all Federal and State regulations." Page 376 of 405 Waste Management, What do we Do?? We process everybody's wastes taking from their home to the Cedar River I'm so Happy Liquid's to the River 101M.41111 SlialiklitRI A CH M‘Cl. A I NE Solids to Farm Fields Page 3 Our Goal Remain Waterloo's Silent Partner But...When Needed We Are Professionally Positioned To Respond QufrkLy and Professional LAiiribtl• vun aii-mein Meet all Requirements of Consent Decree Avoiding Future Fines ave a Sewer Cleaning Program in Place that Minimizes Backups rovide Treatment that Always Meets Final Effluent Requirements WMSD Org Chart DIRECTOR Steve Hoambrecker WASTEWATER WAS L`4WATER TREATMENT OPERATIONS COLLECTION SYSTEM OPERATIONS ADMINISTRATIVE SERVICES Treatment Operations Supervisor Brian Rath Operations Foreman Brian Bowman Operations Dan VIBE_e Rick Hj, Howard Brooks Al Bainbridge Brad MAREkhl Anda Lab Foreman Kathy Skillines Lab Staff Craig �r Thad chibaten c Cort Plant Maintenance Foreman Dick Olson Plant mint Staff Stan Sella Todd Da,att Jesse rakfau. Chris Pg1 Mike McDonald Matt Schaefer Lt1.5t=1n4k Cont. Tech Forem an Kent Coin ICT Staff Steve lAtatw r John Hyman Kevin Kiintatling Supervisor Vacant) Foreman Gary Luck Staff Al arlligIael Todd Gaede Dave Ross Tony Graves Dana Clement Tim Sahr Joe Jones Jr. Justin Gaede Ryan Anderson Joe Schaefer Milo fir. John Holler CMOM Specialist Mark arA.R CMOM Tech Laura Wolff Administrative Secretary Evelyn Russell Clerk II Carrie Lewis FOG Inspector Bob Employees in Red are funded by 521 Storm Sewer Fund All others are funded by 520, Sanitary Sewer fund Page 379 of 405 Current Budget 43 FTE 36 Funded from Sanitary Sewer Fund 7 Funded from Storm Sewer Fund Plant Operations 1 Foreman 6 Operators Operating the Anaerobic Lagoon and WWTP Lab- Industrial Pretreatment 1 Foreman 3Techs Oversee 16 industries 17,660 Yearly analysis WPCP Location of Buildings at 3505 Easton Waterloo Water Pollution Control Facilities OS-Jertage Rec¢Nbg 9dbi 11 -Bar Screen Bul4rg 15 -Rat PIIIp BBIYg 19- nxr Carrel suitltg 18-S1ellk Sytaes SkaUaa IN-ATiSstra lan.cl g 150 -Gaels Ewer 9 Mtn 115-8 gnESIBI1-103:03e EN:arg 1?C-Ole -Its CIallas 1Y - SalHl[e E„AaNFax Me.e Pump aabr IN -WAS .dng 190-t1.1.1xrUV]M 190 -TPS 1141I9Ig 2116-Eahtl Pnnary GYllas 2I O-Ea.Ln P9may MkSge°Mr.] 2M-Ea4 I &aar Bula g 219 - Earn Aeradon Ems. 230 - Eagan Sex CIM1s 2M -Paul RAS Mang 2EB-EaR En. Fl aid 3M -Amen:. olgxb s s Elc.r 1111.eg 32'1-Slltly grrage Tani 325-91uifi`.v at Pu11a&Alm 330-eeaaMlg 1 SCO -E drl BasIns 416-YeWaste go ate 421-Sec}y Caere&MIK aW-Bhp BNIdig SIC -MpagE 9JIRg 99G -Rall LR Galan m a-Irta nerlak. realm IPrev. 1MaM01e2CBpgJ SEG s Clans -.Erg R., ...Rate 9W -O IR:ahuls S. Sr. Maung SW-. Primary Clan!. SC-. Final 1.11 =don 959-P.. 1 969-W Irtermemedae Clanks panaage Cas) 975-T[Mileg RFas, Hg� RaY 1 Foreman and 6 Mechanics Maintaining Lift Stations Maintenance WWTP & Anaerobic Lagoon Lift Stations 61 Buildings 37 Motors 112 Pumps 462 Page 382 of 405 ICT, Instrumentation Control Technicians 1 Foreman 3 Technicians Instrumentation Controls Anaerobic Lagoon Plant & Lift Station Installing Area Velocity Meters Sewer Maintenance Crews 1 Foreman - 12 FTE • Sanitary Sewer Cleaning and Televising • Sanitary and Storm Sewer Repairs • Culverts and Lift Station Trash Maintenance • Storm Gate Maintenance • Levee Maintenance • Ditch Cleaning • Catch Basin repairs • Manhole Repairs • Flood Duty • Backup Calls Page 384 of 405 Televising Sewers lllll.l I II flBll 111!1 11111111111111111111 2016 Major Department Accomplishments ➢ Departmental efforts for 2016 were concentrated by efforts to comply with the consent decree. A summary of those efforts are as follow: ✓ The Capacity Assessment for SA15 and SA16 was completed by September 30, 2016 and submitted by December 31, 2016. ✓ The Condition Assessment for SA15 and SA16 was completed by September 30, 2016 and submitted by December 31, 2016. ✓ A computerized hydraulic model for the sanitary sewer system was developed with an associated report submitted as required by August 31, 2016. ✓ Ongoing CIPP sewer lining projects were completed; 16.85 miles in total have been completed reducing the number of severely rated sanitary sewers by 81.4% in SA 15 and SA16. ✓ Along with the CIPP projects, 248 of the 740 manholes in combined SA 15 &16 were rehabbed. ✓ The footing drain removal program has removed 2,117 households from discharging directly into the sanitary sewers reducing an average of 16.4 million gallons per month and 27.8 million gallons during a wet month of Ill. ✓ The FOG program is in full swing. Continual progress has been experienced since inception in 2015. The monthly averages of grease removed from the city of Waterloo restaurants has increased 129%, going from 50,000 #/Month in 2014 to 114,000 #/Month in 2016. ✓ 11 Area Velocity Meters were installed in strategic locations and 10 Volu calc measuring devices have been installed in strategic lift stations to better monitor system flows. ✓ Crews televised 46.5 miles of sanitary sewer in 2016. ➢ Our Department played a key role in successfully handling the 211d highest Cedar River Crest in Waterloo's history. Our role concentrated on closing key storm sewer valves and insuring collected storm water was pumped successfully back into the Cedar River. In total over 1500 man-hours were tallied over the weeklong plus period. FOG Program FOc • i+a.a as LAGOON RAE - 2 014-2 o I 6 ■ 274 2015 • 2016 3a.aaa ❑ 3a. as a ia.aaa 56.4% Imes from 2014 �J n iSe pi 2046 on! 129% Total Increase from zo14 to xo16 AVG GALLONS *24346 AVG GALLONS Page 387 of 405 Footing Drain Program Thru September 2,117 have been Disconnected ample 1 o C The footing drain program is reducing the amount of water to be treated by an average of 16.4 MG/Month, 27.8 MG Max Footing Drain Flow Related Information April May June July August Sept 2016 2016 2016 2016 2016 2016 Total Compliant 2211 2309 2398 2655 2805 2923 Total Disconnects 1633 1705 1781 1913 2039 2117 Average GPD 221 317 521 190 195 289 Est Month MG reduced 10.2 16.7 27.8 13.1 11.6 19.0 Estimated monthly savings** $1,606 $2,632 $4,378 $2,066 $1,817 $2,984 ** $157.28 2 Year average cost to treat MG of WW The Reduced Flow is Saving an estimated $2,000 - $4,000 per month in Operational Costs Page 388 of 405 Successful Flood Control Over 1500 Man Hours Closing Gates Pumping Flood Water Servicing Lift Stations Departmental Changes ➢ Transitional Changes through Current Budget Year ✓ Lab Tech as budgeted has been filled, PT, transitioning to FT in April 2017, NPDES testing requirement changes ✓ FOG Inspector and Footing Drain Inspector positions combined, both sanitary sewer funded, but operating out of Building Inspections ✓ Advertising with intent to fill vacant Collection System Supervisor position ➢ Proposed Operational Changes ✓ To enable more sewer cleaning and televising achieving desired goals adding 4 seasonal laborers for 6 months each (hanges in Operating Mode Need to be Considered Presently Presently, this is what we are doing, cleaning and TV'ing Together with 1 person on each vehicle Achievi 1,000 Feet per day each Industry standard would be cleaning and TV'ing separately, but using 2 people per vehicle Achieving 3,000 Feet per day each If able to utilize all vehicles, we could go from 3,000 to 18,000 Feet per day Page 391 of 405 Analyzing/Evaluating Options • Sewer Maintenance Staff has 1 Foreman & 12 Workers • Currently using — 6 +/- to Clean - Televise — 4-5 to Perform Maintenance • To fully utilize Equipment — 10-12 to Clean - Televise — 0-2 to Perform Maintenance • Evaluating Options — Keep Staff same — Contract additional Cleaning - Televising — Adding Permanent Employees • 3-4 FT Employees — Adding Seasonal Summer time help, April thru October • Adding 4-6 Seasonal Laborers Page 392 of 40 Why 4 Seasonal's? • Separate Operations will Enable Greater Amount of Work Accomplished • Safe Operational Practices Typically Require 2 per Truck • Propose Working a Seasonal Employee with Sewer Maintenance Staff Person • Can Accomplish Needed Cleaning and TV'ing without Contracting • Extreme Cold Weather Limits Equipment Usage • 4 Seasonal Employees(2FTE) < 1 FT Employee with Benefits • Possible Union Concerns Page 393 of 405 CITY OF WATERLOO Council Communication Certified List for the position of Facilities Maintenance Foreman for the City of Waterloo, Iowa Building Maintenance Department, as certified by the Civil Service Commission on February 14, 2017. City Council Meeting: 2/20/2017 Prepared: REVIEWERS: Department Reviewer Action Date Human Resources Even, LeAnn Approved 2/15/2017 - 2:59 PM ATTACHMENTS: Description Type ❑ Certified List Facilities Maintenance Cover Memo Certified List for the position of Facilities Maintenance Foreman for the City SUBJECT: of Waterloo, Iowa Building Maintenance Department, as certified by the Civil Service Commission on February 14, 2017. Submitted by: Submitted By: Page 394 of 405 CITY OF WATERLOO, IOWA HUMAN RESOURCES DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4303 Fax (319) 291-4569 February 14, 2017 TO: Honorable Mayor & City Council We, the members of the Civil Service Commission, certify the following list of applicants, who are eligible based upon the examination process as set forth by the Civil Service Commission for the appointment to the position of Facilities Maintenance Foreman for the City of Waterloo, Iowa Building Maintenance Department. This list shall be used to fill any vacancy in the Facilities Maintenance Foreman classification for the next two years (February 14, 2017 — February 13, 2019). CERTIFIED LIST Todd Henrich Edward Abben Respectfully submitted, 97Ag1 Lovie •aldwell ' Date CS LIST FACILITIES MAINTENANCE FOREMAN 17 CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 395 of 405 CITY OF WATERLOO, IOWA HUMAN RESOURCES DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4303 Fax (319) 291-4569 February 14, 2017 The City of Waterloo Civil Service Laws adopted October 20, 1983, and approved by the Waterloo City Council on November 14, 1983, allow under Chapter IV, Section 2c for the Mayor and the department head to recommend the approval of a promotional eligibility list of less than three individuals. We are recommending the Civil Service Commission certify a promotional list of two for Facilities Maintenance Foreman — Building Maintenance. Quentin Hart, Mayor Noel Anderson Community Planning & Development Director CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 396 of 405 CITY OF WATERLOO Council Communication Certified List for the position of Police Lieutenant, for the City of Waterloo, Iowa Police Department, as certified by the Civil Service Commission on February 14, 2017. City Council Meeting: 2/20/2017 Prepared: REVIEWERS: Department Reviewer Action Date Human Resources Even, LeAnn Approved 2/15/2017 - 3:00 PM ATTACHMENTS: Description SUBJECT: Submitted by: Type Certified List for the position of Police Lieutenant, for the City of Waterloo, Iowa Police Department, as certified by the Civil Service Commission on February 14, 2017. Submitted By: Page 397 of 405 CITY OF WATERLOO, IOWA HUMAN RESOURCES DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4303 Fax (319) 291-4569 February 14, 2017 TO: Honorable Mayor & City Council We, the members of the Civil Service Commission, certify the following list of applicants, who are eligible based upon the examination process as set forth by the Civil Service Commission for appointment to the position of Police Lieutenant for the City of Waterloo, Iowa Police Department. Appointment(s) shall be made from this list for the next two years (February 14, 2017 — February 13, 2019). CERTIFIED LIST Matthew McGeough Richard Gehrke Steven Bose Kye Richter Augustin Farmer Michael Rasmussen Robert Camarata Robert Greenlee III Brian Hoelscher Robert Duncan The reserve list shall be held in reserve and must be certified within the first year in order to be utilized. Respectfully submitted, Barry askins RESERVE LIST Shawn Monroe iqarrp,„Df-9//ate Ethel Washin ons" Date / L. ie Caldwell D c---/57-//7 CS LIST POLICE LIEUTENANT 17 CITY WEBSITE: www.cityofwaterloniowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 398 of 405 CITY OF WATERLOO Council Communication Civil Service Commission Minutes of October 28, 2016. City Council Meeting: 2/20/2017 Prepared: REVIEWERS: Department Reviewer Action Date Human Resources Even, LeAnn Approved 2/15/2017 - 3:01 PM ATTACHMENTS: Description Type SUBJECT: Civil Service Commission Minutes of October 28, 2016. Submitted by: Submitted By: Page 399 of 405 CIVIL SERVICE COMMISSION MINUTES 7:30 a.m. Friday, October 28, 2016 1st Floor Conference Room — City Hall Members Present: Member Absent: Others Present: Ethel Washington, Lovie Caldwell, Barry Haskins Abraham Funchess (Ex officio) Pat Treloar, Jim Rodemeyer, Sandie Greco, Cheryl Huddleston Moved by Haskins, seconded by Caldwell to approve the October 28, 2016 Agenda. Motion carried. Moved by Caldwell, seconded by Washington to approve the Minutes from September 26, 2016. Motion carried. UNFINISHED BUSINESS The Civil Service List for Battalion Chief -Fire Rescue was presented for certification. The Human Resources Committee approved beginning the Civil Service process on 4/11/16 and the Civil Service Commission approved the job description and testing criteria on 6/10/16. There are anticipated vacancies due to retirements. The position was posted at all Fire Stations, 3 applied and took a written test worth 50% of the total score. One did not pass the written test. The other candidates participated in a panel evaluation conducted by Fire Chief John Grier from Iowa City, Fire Chief Greg Martin from Rochester, MN and Deputy Chief Don Ryan from Burlington which was worth 40% of the total score. Both passed the panel evaluation. Battalion Chiefs Freshwater, Moore and Jenn evaluated a written exercise completed by the candidates that was worth 10% of the score. The Civil Service List has 2 white males. Moved by Haskins, seconded by Washington: We, the members of the Civil Service Commission, certify the following list of applicants, who are eligible based upon the examination process as set forth by the Civil Service Commission for the appointment to the position of Battalion Chief for the City of Waterloo, Iowa Fire Rescue Department. Appointments shall be made from this list for the next three years (October 28, 2016 — October 27, 2019). CERTIFIED LIST Ben Petersen Troy Luck Motion carried. The Civil Service List for Maintenance Electrician -Traffic Operations was presented for certification. The job description and testing criteria were approved by the Civil Service Commission on 6/10/16 and the Human Resources Committee approved beginning the Civil Service process on 9/12/16. There is a vacancy due to a resignation. The position was advertised in the Courier, a notice sent to the agencies and organizations on the Affirmative Action list, posted on the City website and in all City departments. We received 7 resumes and 6 were invited to interview. Panel members were Mohammad Elahi and Matt Vlasak from Traffic Operations and Cheryl Huddleston from Human Resources. One candidate withdrew and we have a list with 5 white males. Moved by Caldwell, seconded by Haskins: We, the members of the Civil Service Commission, certify the following list of applicants, who are eligible based upon the examination process as set forth by the Civil Service Commission for appointment to the position of Maintenance Electrician for the Traffic Operations Department. Appointment(s) shall be made from this list for the next year (October 28, 2016 — October 27, 2017). Page 400 of 405 CERTIFIED LIST Justin Aten Donald Oelmann Joel Wardell Scott Buchan Richard Mott Motion carried. The Civil Service List for Equipment Operator II—Street Department was presented for certification. The Human Resources Committee approved beginning the Civil Service process on 7/25/16 and the Civil Service Commission approved the job description and testing criteria on 8/30/16. There is a vacancy due to a retirement. The position was posted internally in all City departments and we received 2 resumes. Both candidates took an equipment test worth 60% of the score judged by Mike Gienau and Daniel Greer from the Street Department and both passed. Candidates were interviewed by JB Bolger from Leisure Services, Tony Pauley from the Street Department and Cheryl Huddleston from Human Resources. The interview was worth 40% of the total score and both passed. We have a list with 2 white males. Moved by Haskins, seconded by Caldwell: We, the members of the Civil Service Commission, certify the following list of applicants, who are eligible based upon the examination process as set forth by the Civil Service Commission for the appointment to the position of Equipment Operator II for the City of Waterloo, Iowa Street Department. Appointments shall be made from this list for the next two years (October 28, 2016 — October 27, 2018). CERTIFIED LIST Frank Frost Chad McNamara Motion carried. The Civil Service List for Medical Officer -Fire Rescue was presented for certification. The Civil Service Commission approved the job description and testing criteria on 8/30/16 and the Human Resources Committee approved beginning the Civil Service testing process on 9/6/16. There is a vacancy due to a department transfer. The position was posted at all Fire Stations and we received 2 resumes. The candidates were interviewed by Barb McBride, Jason Hernandez, Greg Stewart and Mike Jenn from Fire Rescue and Cheryl Huddleston from Human Resources and both candidates passed. We have a list with 2 white males. Moved by Haskins, seconded by Caldwell: We, the members of the Civil Service Commission, certify the following list of applicants, who are eligible based upon the examination process as set forth by the Civil Service Commission for the appointment to the position of Medical Officer for the City of Waterloo, Iowa Fire Rescue Department. Appointments shall be made from this list for the next three years (October 28, 2016 — October 27, 2019). CERTIFIED LIST Travis Ihnen Ben Smith Motion carried. Page 401 of 405 Updates Fire Marshal — Fire Rescue — Promotional - approved by Civil Service on 8/30/16 and by Human Resources on 9/6/16; posted internally; received 2 resumes and a written test is scheduled for 11/17/16. Laboratory Technician — Waste Management Services — Open — approved by Civil Service on 9/26/16 and by Human Resources on 10/3/16; advertised in Courier, posted on City website, listed with agencies and organizations on the Affirmative Action list and posted in all City departments; have received 13 resumes to date. Permit Writer — Building Inspections — Open — approved by Civil Service on 6/10/16 and by Human Resources on 9/26/16; advertised in Courier, posted on City website, listed with agencies and organizations on the Affirmative Action list and posted in all City departments; received 15 resumes and 4 invited to interview on 11/8/16. NEW BUSINESS None OTHER BUSINESS None With no further business, moved by Haskins, seconded by Caldwell to adjourn. Motion carried. Cheryl Huddleston, Human Resources Manager Clerk for the Civil Service Commission Page 402 of 405 CITY OF WATERLOO Council Communication Civil Service Commission Minutes of December 22, 2016. City Council Meeting: 2/20/2017 Prepared: REVIEWERS: Department Reviewer Action Date Human Resources Even, LeAnn Approved 2/15/2017 - 3:00 PM SUBJECT: Civil Service Commission Minutes of December 22, 2016. Submitted by: Submitted By: Page 403 of 405 CITY OF WATERLOO Council Communication Civil Service Commission Minutes of January 27, 2017. City Council Meeting: 2/20/2017 Prepared: REVIEWERS: Department Reviewer Action Date Human Resources Even, LeAnn Approved 2/15/2017 - 3:00 PM ATTACHMENTS: Description Type SUBJECT: Civil Service Commission Minutes of January 27, 2017. Submitted by: Submitted By: Page 404 of 405 CIVIL SERVICE COMMISSION MINUTES 7:30 a.m. Friday, January 27, 2017 1st Floor Conference Room — City Hall Members Present: Ethel Washington, Lovie Caldwell, Barry Haskins, Abraham Funchess (Ex officio) Others Present: Steve Hoambrecker, Jim Rodemeyer, Cheryl Huddleston Moved by Caldwell, seconded by Haskins to approve the January 27, 2017 Agenda. Motion carried. Moved by Washington, seconded by Caldwell to approve the Minutes from December 22, 2016. Motion carried. UNFINISHED BUSINESS Updates Financial Analyst — Finance Department — Open Exam - approved by Human Resources on 11/21/16 and by Civil Service on 12/1/16; vacancy due to termination; advertised Courier, City website, Affirmative Action list, posted in all departments, then readvertised all the same locations with an extended deadline and additional ads posted with Government Finance Officers Association and Iowa League of Cities; 19 resumes received to date. Facilities Maintenance Foreman —Maintenance — Promotional Exam - approved by Human Resources on 12/19/16 and by Civil Service on 12/22/16; new position; posted in all departments; received 3 resumes; 2 invited to interview 2/7/17. Police Sergeant — Promotional Exam — approved by Human Resources on 12/12/16 and by Civil Service on 12/22/16; posted in the Police Department; received 15 resumes; written exam most likely mid-March. Police Lieutenant — Promotional Exam — approved by Human Resources on 12/12/16 and by Civil Service on 12/22/16; posted in the Police Department; received 11 resumes; interviews on 2/6-7/17. NEW BUSINESS The job description and testing criteria for Police Recruit was presented for approval. The position was approved by the Human Resources Committee on 12/12/16. Changes have been made to the drug use policy as follows: (a) went from 3 years to 1 year; (b) went from 3rd year to 1 year and from 10 individual uses to 20 individual uses; (c) added "or the abuse of a legal substance." After discussion regarding recruiting women and minorities and diversity inclusion training, moved by Haskins, seconded by Washington to approve the job description and testing criteria for Police Recruit. Motion carried. The job description and testing criteria for Waste Water Systems Maintenance Foreman — Waste Management Services was presented for approval. The position was approved by the Human Resources Committee on 12/19/16. There is a vacancy due to a retirement. This is a promotional position. The description was rewritten to better reflect the expectations for the position — the last description was 16 years old. The candidate will also be required to obtain a Waste Water Operator II certification. The title was changed from Maintenance Foreman. Moved by Haskins, seconded by Caldwell to approve the job description and testing criteria for Waste Water Systems Maintenance Foreman. Motion carried. OTHER BUSINESS None With no further business, moved by Haskins, seconded by Washington to adjourn. Motion carried. Cheryl Huddleston, Human Resources Manager Clerk for the Civil Service Commission Page 405 of 405