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HomeMy WebLinkAboutCouncil Packet - 11/6/2017THE C I TY C O U N C I L O F THE C I TY O F WATE R LO O, I O WA, R E G U LA R S E SS I O N TO B E HE LD AT TH E HA R O LD E. G E TTY C O U N C I L C H A M B E R S M onday, Novem ber 6, 2017 5:30 PM CITY OF WATERLOO GOALS 1. S upport the creatio n o f new, livab le wage jo b s through a b alanc ed econo mic d evelopment ap p ro ach of as s is ting existing b us ines s es , fo s tering s tart-ups, attrac ting new emp lo yers and c ultivating an ad eq uate workfo rce. 2. Implement a C ommunity P o lic ing s trategy that creates a s afe enviro nment in Waterlo o . 3. R ed uc e the C ity's property tax levies thro ugh a respons ib le b alanc e of cost reductio n in C ity operatio ns and inc reas es in taxab le property valuations to ens ure that Waterloo is a c ompetitive, affo rd ab le, and livab le c ity. 4. Enhanc e the image o f Waterloo and the C ity to residents and bus ines s es inside and o uts id e of the c o mmunity. G eneral Rul es for P ubl i c P arti ci pati on 1. At the c hair/p res id er's disc retio n, yo u may ad d res s an item on the c urrent agend a by s tepping to the podium, and after rec o gnition by the chair/pres id er, s tate your name, ad d res s and gro up affiliation (if appropriate) and speak c learly into the mic ro p hone. 2. Yo u may s p eak o ne (1) time per item fo r a maximum of five (5) minutes as lo ng as you have regis tered with the C ity C lerk's offic e no later than 4:00 p .m. on the d ay o f the C o uncil Meeting. If not regis tered with the C ity C lerk's offic e you may speak one (1) time p er item for a maximum o f three (3) minutes . 3. If there is a hearing sc heduled as part of an agend a item, the c hair/pres ider will allo w everyo ne who wis hes to ad d res s the c o uncil, us ing the s ame p artic ip ation guidelines found in thes e "general rules". 4. Altho ugh not required by c ity c ode o f ordinanc es , o ral presentations may be allo wed at the c hair/p res id er's (us ually the Mayor o r Mayor P ro Tem) dis c retio n. T he "o ral p res entations " sec tion of the agend a is your opportunity to ad d res s items no t o n the agend a. You may speak one (1) time fo r a maximum of five (5) minutes as lo ng as you have regis tered with the C ity C lerk's offic e no later than 4:00 p .m. on the d ay o f the C o uncil Meeting. If not regis tered with the C ity C lerk's offic e a s peaker may speak to one (1) is s ue p er meeting for a maximum of three (3) minutes . O ffic ial actio n cannot be taken b y the C ounc il at that time, b ut may b e plac ed on a future agenda o r referred to the ap p ro p riate d ep artment. 5. Keep c o mments germane and refrain from p ers o nal, impertinent or s landerous remarks . 6. Q ues tions c o nc erning thes e rules o r any agend a item may be direc ted to the C lerk's O ffice at 291-4323. 7. C itizens are enc o uraged to regis ter with the C lerk's O ffic e by 4:00 p .m. on Mo nday of the d ay o f the C ity C ounc il meeting to ap p ear before the C ity C ounc il (may also register by p hone). R egistered speakers will b e given first priority. Page 1 of 297 Roll Call. Prayer or Moment of Silence Pastor Jason Falck from Walnut Ridge Baptist Church Pledge of Allegiance Sandie Greco, Interim Public Works Director Agenda, as proposed or amended. Minute s of Octobe r 23, 2017, Regular Session, as proposed. Wate rloo Fire Rescue Busine ss Comme ndation to Warre n Transport, Inc, and Civ ilian Comme ndation to Lance Votroube k, Glynna Borwig, and Jeff Wilson. Recognize coache s and playe rs of the ye ar in Optimist Club Flag Football. ORAL P RES ENTAT I ONS I owa C ode 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. T he City of Waterloo encourages the public to participate during the Oral P resentations by f ollowing the rules listed on the f ront of the agenda. Mayor and Council Monthly Reports 1.Conse nt Agenda: (The fol lowing items will be acted upon by voice vote on a si ngle motion without separate discussion, unless someone from the counci l or publ ic requests that a speci fi c i tem 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 a date of public hearing as November 20, 2017 to approve the request by Standard Distribution Company, Inc. for a site plan amendment to the “M-2,P” Planned Industrial District to allow for the construction of a 50,000 square foot industrial building with a 26 acre laydown yard, located just north of 3040 Leversee Road, and instruct City Clerk to publish said notice. Submitted By: Noel Anderson, Community Planning & Development Director 3.Resolution setting a date of public hearing as November 20, 2017 to approve the sale and conveyance of city owned property located north of 3040 Leversee Road, in the amount of $1.00, to S D C Real Estate, L.L.C., including a Development Agreement, and instruct City Clerk to publish said notice. Page 2 of 297 Submitted By: Noel Anderson, Community Planning & Development Director 4.Resolution setting a date of public hearing as November 20, 2017 to approve the sale and conveyance of city owned property located near Chalmers Drive and at the Northeast corner of Ansborough and Upton Avenue, in the amount of $15,001, to Village Creek Rentals, LL C, including a Development Agreement, and instruct City Clerk to publish said notice. Submitted By: Noel Anderson, Community Planning & Development Director 5.Resolution approving preliminary plans, specifications, form of contract, etc., setting date of bid opening as December 14, 2017 and date of public hearing as December 18, 2017 for the construction of a vehicle/evidence storage facility, and instruct the City Clerk to publish said notice. Submitted By: Captain Frank Krogh 6.Request from Jack Wilson for a waiver for a concrete driveway located at 827 and 829 E. Ridgeway Avenue with the elimination of the sidewalk section due to the inability to meet grade requirements. Submitted By: Eric T horson, PE, City Engineer 7.Request from Iowa Heartland Habitat for Humanity for a waiver for a concrete driveway located at 721 Eureka Street and authorizing the construction of a concrete driveway and placing a driveway or sidewalk on city right-of-way on an unimproved street. Submitted By: Eric T horson, PE, City Engineer 8.Request from Hawkeye Community College for a waiver for a concrete driveway located at 6315 Hammond Avenue and authorizing the construction of a concrete driveway and placing a driveway or sidewalk on city right-of-way on an unimproved street. Submitted By: Eric T horson, PE, City Engineer 9.Request from Linda Gaul for a waiver to use colored concrete on the concrete approach located at 4238 Suburban Drive. Submitted By: Eric T horson, PE, City Engineer 10.Resolution approving preliminary plans, specifications, bid documents, etc., setting a date of bid opening as November 16, 2017, and setting a date of public hearing as November 20, 2017, for the Flow Equalization Facility Overflow Connect to Satellite WPCF, City Contract No. 880, and instruct City Clerk to publish notice. Submitted By: Steven Hoambrecker, Director, Waste Management Services B.Motion to approve the following: 1.T RAV EL R EQ U ES T S a.P.O. Suljic Class/Meeting: Street Survival Seminar Destination: Waterloo, IA Dates: July 25-26, 2017 Amount not to exceed: $229 b.Chris Weste rn, Planne r I I , Brownfie lds Coordinator Class/Meeting: Brownfields 2017 Conference Destination: Pittsburgh, PA Page 3 of 297 Dates: Dec. 4-7, 2017 Amount not to exceed: $1,725 2.L I QUOR L I C ENS ES a.Hy Ve e #1 Clubroom,2834 Ansborough Av enue Class: Special C Liquor Renewal Application Includes Sunday Expiration Date: 10/16/2018 b.Hy Ve e Wine and Spirits #1, 2126 Kimball Av e nue Class: B Wine / C Beer / E Liquor Renewal Application Includes Sunday Expiration Date: 11/14/2018 c.Kings and Quee ns, 304 W. 4th Stree t Class: C Liquor w/Outdoor Service Renewal Application Includes Sunday Expiration Date: 11/15/2018 d.Kings and Quee ns, 304 W. 4th Stree t *Owne rship Update* Class: C Liquor w/Outdoor Service New Application Includes Sunday Expiration Date: 11/16/2018 e.Ne ighborhood Mart, 2102 Lafaye tte Stree t Class: B Wine / C Beer / E Liquor New Application Includes Sunday Expiration Date: 11/14/2018 f.WCA Building & Amphitheatre, 225 Comme rcial Stre et Class: Special C Liquor Renewal Application Includes Sunday Expiration Date: 6/21/2018 g.Z's Re staurant & Lounge , 3937 W. Airline Highway Class: C Liquor Renewal Application Does not include Sunday Expiration Date: 10/31/2018 3.APPOI N T M ENTS a.Ry an Ve stal Board/Commission: Board of Electrical Examiners and Appeals Expiration Date: 11/1/20 Re-Appointment b.Richard Mott Board/Commission: Board of Electrical Examiners and Appeals Expiration Date: 11/10/20 Re-Appointment c.Matthew Chapman Page 4 of 297 Board/Commission: Board of Electrical Examiners and Appeals Expiration Date: 11/10/20 Re-Appointment d.Mike Fereday B oard/C ommission: Heating, Ventilation & Air Conditioning Mechanical Board for Licensing & Appeals Expiration Date: 11/10/2020 Re-Appointment e.Julie Gardne r B oard/C ommission: Heating, Ventilation & Air Conditioning Mechanical Board for Licensing & Appeals Expiration Date: 11/10/2020 Re-Appointment f.Trav is Young B oard/C ommission: Heating, Ventilation & Air Conditioning Mechanical Board for Licensing & Appeals Expiration Date: 11/10/2020 Re-Appointment g.Mike Mrzlak Board/Commission: Memorial Hall Commission Expiration Date: 12/31/2020 Re-Appointment h.Craig White Board/Commission: Memorial Hall Commission Expiration Date: 12/31/2020 Re-Appointment i.De nise Dermody Board/Commission: ADA Compliance Commission Expiration Date: 11/6/2020 New Appointment 4.Motion to receive and place on file the 2016 Audit of the Waterloo Water Works. Submitted By: Matt Mahler, Water Works General Manager 5.Bonds PUBLI C HEARI N GS 2.Amendment to the City of Waterloo Zoning Ordinance No. 5079 to update m ultiple se ctions re garding re gulations for Recy cling, Junk or Salvage Yards and other misce llane ous update s. Motion to receive and file proof of publication of notice of public hearing. H OL D HEARIN G - No comments on file. Motion to close hearing and receive and file oral and written comments and recommendation of approval of Planning, Programming and Zoning Commission. Page 5 of 297 Motion to receive, file, consider and pass for the first time an Ordinance amending Ordinance No. 5079, as amended, City of Waterloo Zoning Ordinance, by amending Section 10-3-1 Definition of Impound Yard and Recycling, Junk or Salvage Yards, and Section 10-27-1(H)(8) Special Permit Regulations for Recycling, Junk and Salvage Yards. Motion to suspend the rules. Motion to consider and pass for the second and third times and adopt ordinance. Submitted By: Aric Schroeder, City Planner 3.Flow Equalization Facility Ov erflow Connect to Sate llite WP F C, City Contract No. 880. T he public hearing is cancelled and will be rescheduled for a later date. Submitted By: Steven Hoambrecker, Director, Waste Management Services 4.Sale and conv e y ance of city owne d prope rty to Rebe l Saffold Jr. and Rhonda S. Saffold to purchase city ow ne d prope rty generally located at 408 and 414 Fowler Stre et, with De ve lopme nt Agre ement. Motion to receive and file proof of publication of notice of public hearing. H OL D HEARIN G - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution authorizing sale and conveyance of city owned property located at 408 and 414 Fowler Street, to Rebel Saffold Jr. and Rhonda S. Saffold in the amount of $1.00 per property, and authorizing the City Attorney to prepare and deliver the deed accordingly, and authorizing the Mayor and City Clerk to execute said documents. Resolution approving a Development Agreement with Rebel Saffold Jr. and Rhonda S. Saffold for the property located 408 and 414 Fowler Street, and authorizing the Mayor and City Clerk to execute said agreement. Submitted By: Noel Anderson, Community Planning and Development Director 5.Sale and conv e y ance of city owne d prope rty locate d at the northe ast corne r of Idaho Stre e t and Martin Luther King, Jr. Driv e to The Ov e rland Group, LLC in the amount of $25,000, and approving a Purchase and Sale Contract. Motion to receive and file proof of publication of notice of public hearing. H OL D HEARIN G - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution approving the sale and conveyance of city owned property located at the northeast corner of Idaho Street and Martin Luther King, Jr. Drive to T he Overland Group, L L C in the amount of $25,000, and authorizing the Mayor and City Clerk to execute said documents. Resolution approving Purchase and Sale Contract between T he Overland Group, LL C and the City of Waterloo, Iowa, for the purchase of city-owned property located at the northeast corner of Idaho Street and Martin Luther King, Jr. Drive, and authorizing the Mayor and City Clerk to execute said documents. Submitted By: Noel Anderson, Community Planning & Development Director 6.F Y 2018 Lev ee Tre e Cle aring Cedar Riv er, Contract No. 938. Motion to receive and file proof of publication of notice of public hearing. H OL D HEARIN G - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution confirming approval of plans, specifications, form of contract, etc. Page 6 of 297 Resolution authorizing to proceed. Motion to receive and file and instruct City Clerk to read bids and refer to City Engineer for review. Submitted By: Jamie Knutson, P E, Associate Engineer R ES OLUTI ONS 7.Resolution approving a Professional Services Agreement with AE C OM Technical Services, Inc. for design services associated with the completion of the Categorical Exclusion Amendment for the F Y-2018 FAA funded project at Waterloo Regional Airport in the amount of $31,700, and authorize the Mayor to execute said document. Submitted By: Keith Kaspari, Airport Director 8.Resolution approving Convention and Visitors Bureau Board recommendations for funding the following hotel-motel mini grant application for the Senior Scratch Bowling Association/Cadillac XBC in the amount of $2,231. Submitted By: Annette Freeseman, Waterloo Convention and Visitors Bureau 9.Resolution approving the contract with Tyson Fresh Meats, Inc. of Waterloo, Iowa, and the Iowa Economic Development Authority for High Quality Jobs Program-Tax Credit Component Incentives, and authorize the Mayor and City Clerk to execute said document. Submitted By: Noel Anderson, Community Planning & Development Director 10.Resolution approving FY 2018-2023 Airport Capital Improvement Plan for the Waterloo Regional Airport. Submitted By: Keith Kaspari, Airport Director 11.Resolution awarding the recycling processing facility to support the City of Waterloo's Curbside Recycling Program bid to Cedar Valley Recycling & Transfer of Waterloo, Iowa in the amount of $32,000, for a period of one (1) year and approving contract, bond and certificate of insurance and authorize the Mayor and City Clerk to execute said documents. Submitted By: Sandie Greco, Interim Public Works Director 12.Resolution approving Final Quantity Summary for a net increase of $8,007.85 for the F Y 2017 Sergeant Road Trail Bridge No. 1 Replacement, Contract No. 917, and authorize the Mayor and City Clerk to execute said document. Submitted By: Wayne Castle, PL S, P E, Associate Engineer 13.Resolution approving Completion of Project and Recommendation of Acceptance of Work for work performed by Lodge Construction, Inc. of Clarksville, Iowa, at a total cost of $74,163.13 for the F Y 2017 Sergeant Road Trail Bridge No. 1 Replacement, Contract No. 917, and receive and file two (2) year maintenance bond. Submitted By: Eric T horson, PE, City Engineer 14.Resolution approving a Professional Services Agreement with Great Plains Survey, Inc. for land surveying services within the Northeast Industrial area, in an amount not to exceed $34,101, and authorize the Mayor to execute said document. Page 7 of 297 Submitted By: Noel Anderson-Community Planning and Development Director 15.Resolution approving the Agreement for Subdivision Platting with Roger T. Kalsem, Jeffrey L. Swartzendruber and Patricia Swartzendruber, and authorize the Mayor and City Clerk to execute said documents. Submitted By: Noel Anderson, Community Planning & Development Director 16.Resolution approving a variance to the requirements of the Subdivision Ordinance in Section 11-3-2 Preliminary Plats and Section 11-3-3 Final Plats, relating to approval of a Plat of Survey of Parcel E located adjacent to the proposed extension of Bay Berry Drive. Submitted By: Noel Anderson, Community Planning & Development Director 17.Resolution approving the request by Jeffrey L. Swartzendruber and Patricia Swartzendruber to approve a Plat of Survey of Parcel E located adjacent to the proposed extension of Bay Berry Drive. Submitted By: Noel Anderson, Community Planning & Development Director ORDI NANCES 18.An ordinance amending Ordinance No. 5079, as ame nded, City of Wate rloo Zoning Ordinance, by ame nding the Official Zoning Map re fe rred to in Section 10-4-4, approv ing a re zone of ce rtain prope rty, located west of 2010 W. Ridgew ay Ave nue Motion to receive, file and consider for the third time and adopt 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, located west of 2010 W. Ridgeway Avenue. Submitted By: Noel Anderson, Community Planning & Development Director A D JOU R NMENT M otion to adjourn. Kelley Felchle City Clerk MEE T I N GS 4:30 p.m. Council Work Session, Harold E. Getty Council Chambers 4:50 p.m. Building and Grounds Committee, Harold E. Getty Council Chambers 5:05 p.m. Boards and Commissions, Harold E. Getty Council Chambers 5:10 p.m. Finance Committee, Harold E. Getty Council Chambers PUBLI C I NF ORM AT I ON 1.Communication from the Leisure Services Department on the notice of the conclusion of employment for Joe McCracken, Golf Maintenance II, effective September 29, 2017 with recommendation of approval of payout of $4,137.71 for unused benefits. Page 8 of 297 2.Communication from the Waterloo Public Library Department on the notice of the conclusion of employment for Michael J. Dargan, Technical Systems & Reference Administrator, effective September 29, 2017 with recommendation of approval of payout of $10,342.75 for unused benefits. 3.Waterloo Water Works Board of Trustees meeting minutes of October 18, 2017 on file in the Waterloo City Clerk’s office. Page 9 of 297 C ITY OF WATER LOO Council Communication Minutes of O c to b er 23, 2017, R egular S es s ion, as proposed. City Council Meeting: 11/6/2017 Prepared: R EV I EWER S : D epartment R eviewer Action D ate C lerk O ffice H igby, Nancy Approved 10/30/2017 - 4:27 P M ATTA C H M EN TS : Description Type M inutes of 10/23/17 B ackup M aterial S ub mitted by:S ubmitted By: Page 10 of 297 October 23, 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, October 23, 2017. Mayor Quentin Hart in the Chair. Roll Call: Jacobs, Morrissey, Powers, Lind, Amos, and Welper. Absent: Mr. Schmitt. Prayer or Moment of Silence. Pledge of Allegiance: Kelley Felchle, City Clerk. 146153 - Welper/Amos that the Agenda, as amended, by adding Item 8. 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, located west of 2010 W. Ridgeway Avenue; and Item 9, An Ordinance amending the 2008 Traffic Code by amending Section 544 - All-Way Stop Intersections by adding Subsection (36) Shaulis Road and Ansborough Avenue, for the Regular Session on Monday, October 23, 2017, at 5:30 p.m., be accepted and approved. Voice vote-Ayes: Six. Motion carried. 146154 - Welper/Amos that the Minutes, as proposed, for the Regular Session on Monday, October 16, 2017, at 5:30 p.m., be accepted and approved. Voice vote-Ayes: Six. Motion carried. Mayor Hart read a Proclamation declaring October 26, 2017 as Gentleman Day. Mayor Hart read a Proclamation declaring October 22-28, 2017 as National Lead Poisoning Prevention Week. Mayor Hart read a Proclamation declaring October 28, 2017 as Steadfast and Immovable. ORAL PRESENTATIONS Jim Chapman, 224 Bertch, expressed concern about bicycle safety in Waterloo. Mayor Hart agreed it would be good to add additional safety information beyond what is currently available. 146155 - Welper/Morrissey that the above oral comments be received and placed on file. Voice vote-Ayes: Six. Motion carried. CONSENT AGENDA 146156 - Welper/Powers 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 October 23, 2017, in the amount of $4,295,107.85 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. 2017-870. 2. Resolution approving request of Friends of the Family for a variance to the Noise Ordinance No. 3094, on October 27, from 4:00 p.m. to 6:00 p.m. in conjunction with the Domestic Violence Awareness Walk, to be held at Lincoln Park, including the use of a PA system, together with recommendation of approval of Captain of Police Services. Resolution adopted and upon approval by Mayor assigned No. 2017-871. Page 11 of 297 October 23, 2017 Page 2 3. Resolution approving cancellation of assessment for 1658 Hyperion Drive in the amount of $264.02; and 2929 Spruce Lane in the amount of $235.32, and authorize City Clerk to notify Black Hawk County Treasurer of said cancellation. Resolution adopted and upon approval by Mayor assigned No. 2017-872. 4. Resolution setting date of public hearing as November 27, 2017 to approve Amendment No. 3 to the Northeast Industrial Area Urban Renewal and Redevelopment Plan, to remove properties from the TIF area, and setting date of consultation with taxing entities on November 8, 2017, and instruct City Clerk to publish notice. Resolution adopted and upon approval by Mayor assigned No. 2017-873. 5. Resolution setting date of public hearing as November 27, 2017 to approve Amendment No. 4 to the Northeast Industrial Area Urban Renewal and Redevelopment Plan, to expand the boundaries and update projects and include additional projects and update related financial information, and include other general updates to the Plan, and setting date of consultation with taxing entities on November 8, 2017, and instruct City Clerk to publish notice. Resolution adopted and upon approval by Mayor assigned No. 2017-874. 6. Resolution setting date of public hearing as November 27, 2017 to approve Amendment No. 3 to the San Marnan Urban Renewal and Redevelopment Plan, to remove properties from the TIF area, and setting date of consultation with taxing entities on November 8, 2017, and instruct City Clerk to publish notice. Resolution adopted and upon approval by Mayor assigned No. 2017-875. 7. Resolution setting date of public hearing as November 27, 2017 to approve Amendment No. 4 to the San Marnan Urban Renewal and Redevelopment Plan, to expand the boundaries and to update projects and include additional projects and update related financial information, and include other general updates to the Plan, and setting date of consultation with taxing entities on November 8, 2017, and instruct City Clerk to publish notice. Resolution adopted and upon approval by Mayor assigned No. 2017-876. 8. Resolution setting a date of public hearing as November 6, 2017 to approve a Purchase and Sale Contract for city owned property located at the northwestern corner of Martin Luther King Jr Drive and Idaho Street, in the amount of $25,000.00, to The Overland Group, LLC, and instruct City Clerk to publish said notice. Resolution adopted and upon approval by Mayor assigned No. 2017-877. 9. Resolution setting date of public hearing as November 6, 2017 to approve an amendment to the City of Waterloo Zoning Ordinance No. 5079 to update multiple sections regarding regulations for Recycling, Junk or Salvage Yards and other miscellaneous updates, and instruct City Clerk to publish notice. Resolution adopted and upon approval by Mayor assigned No. 2017-878. 10. Resolution setting the date of public hearing as November 6, 2017 for the request by Rebel Saffold Jr. and Rhonda S. Saffold to purchase city owned property generally located at 408 and 414 Fowler Street, with development agreement, and instruct City Clerk to publish notice. Resolution adopted and upon approval by Mayor assigned No. 2017-879. 11. Resolution approving preliminary plans, specifications, form of contract, etc., setting the date of bid opening as November 9, 2017, and the date of public hearing as November 13, 2017, in conjunction with the Hangar No. 4 Rehabilitation Project, at the Waterloo Regional Airport, via IDOT Project No. 9-I-180-ALO-200, and IDOT Contract No. 19559, and instruct the City Clerk to publish said notice. Page 12 of 297 October 23, 2017 Page 3 Resolution adopted and upon approval by Mayor assigned No. 2017-880. 12. Resolution approving the request of DS Rentals for tax exemptions on the construction of a twin home valued at $150,000 for property located at 5645 Keith Lane, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-881. 13. Resolution approving the request of DS Rentals for tax exemptions on the construction of a twin home valued at $150,000 for property located at 5647 Keith Lane, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-882. 14. Resolution approving the request of DS Rentals for tax exemptions on the construction of a twin home valued at $130,000 for property located at 5632 Keith Lane, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-883. 15. Resolution approving the request of DS Rentals for tax exemptions on the construction of a twin home valued at $130,000 for property located at 5630 Keith Lane, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-884. 16. Resolution approving the request of DS Rentals for tax exemptions on the construction of a twin home valued at $150,000 for property located at 5623 Keith Lane, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-885. 17. Resolution approving the request of DS Rentals for tax exemptions on the construction of a twin home valued at $150,000 for property located at 5621 Keith Lane, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-886. 18. Resolution approving the request of DS Rentals for tax exemptions on the construction of a twin home valued at $130,000 for property located at 2904 Cohen Lane, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-887. 19. Resolution approving the request of DS Rentals for tax exemptions on the construction of a twin home valued at $130,000 for property located at 2903 Cohen Lane, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-888. 20. Resolution approving the request of DS Rentals for tax exemptions on the construction of a twin home valued at $130,000 for property located at 2901 Cohen Lane, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-889. 21. Resolution approving the request of DS Rentals for tax exemptions on the construction of a twin home valued at $130,000 for property located at 2902 Cohen Lane, and located in the City Limits Urban Revitalization Area (CLURA). Resolution adopted and upon approval by Mayor assigned No. 2017-890. Page 13 of 297 October 23, 2017 Page 4 22. Resolution approving request to certify assessment to property for work performed by the Waterloo Water Works, together with recommendation of approval by the Waterloo Water Works Board of Trustees: Address and amount to certify: 929 Grant Avenue - $1,384.89 Resolution adopted and upon approval by Mayor assigned No. 2017-891. b. Motion to approve the following: 1. Travel Requests Name & Title of Personnel Class/Meeting Destination Date(s) Amount not to Exceed a. Bob Lentzkow, Combination Inspector Residential Building Inspector Exam Coralville, IA October 25, 2017 $199 b. Bob Ball, Chief Building Inspector Wisconsin Commercial Building Code Refresher Madison, WI February 25-28, 2018 $1,295 c. Steven Hoambrecker, Director Waste Management Services 11th Annual Four-States Governmental Affairs Meeting EPA Region 7 Office Lenexa, KS November 5-6, 2017 $327.75 d. Sgt. Greenlee and P.O. Moore Radar Lidar Instructor Course. Johnston, IA October 23- 26, 2017 $800 2. Approved Beer, Liquor, and Wine Applications Name & Address of Business Class New or Renewal Expiration Date Includes Sunday a. The Brown Bottle, 209 W. 5th Street C Liquor Renewal 10/21/2018 x b. Logan Convenience Store, 735 Logan Avenue B Wine / C Beer / E Liquor Renewal 11/11/2018 x c. New World Lounge II, 504 Riehl Street C Liquor Renewal 9/14/2018 x d. Walmart Supercenter #1496, 1334 Flammang Drive B Wine / C Beer / E Liquor Renewal 9//30/2018 x 3. Motion to approve Cigarette/Tobacco/Nicotine/Vapor Permit Application for Sarwar Corporation dba Neighborhood Mart, 2102 LaFayette Street. Roll call vote-Ayes: Six. Motion carried. PUBLIC HEARINGS 146157 - Lind/Amos that proof of publication of notice of public hearing on motor grader rentals to support snow operations, as published in the Waterloo Courier on October 16, 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. 146158 - Lind/Morrissey to close hearing. Voice vote-Ayes: Six. Motion carried. 146159- Lind/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. 2017-892. Page 14 of 297 October 23, 2017 Page 5 146160 - Lind/Morrissey that “Resolution authorizing to proceed”, be adopted. Roll-call vote-Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-893. 146161 - Lind/Morrissey Motion to receive and file and instruct City Clerk to read bids. Estimate: $100,800 Bidder Bid Amount Murphy Tractor Waterloo, IA $107,200 Ziegler CAT Postville, IA $130,000 Voice vote-Ayes: Six. Motion carried. 146162 - Lind/Morrissey that “Resolution awarding motor grader rental bid to Murphy Tractor of Waterloo, Iowa, for the rental of four (4) motor graders to support snow operations, in the amount of $107,200, and approving the contract”, be adopted. Roll-call vote-Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-894. RESOLUTIONS 146163 - Amos/Welper that “Resolution approving Cloverdale Park Lease Agreement with the Black Hawk County Board of Supervisors, and authorize the Mayor and City Clerk to execute said document”, be adopted. Roll-call vote-Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-895. 146164 - Amos/Welper that “Resolution approving extension of a moratorium for a period ending December 4, 2017 on the issuance of a Special Permit or License, for the establishment of any new recycling, junk, or salvage yards”, be adopted. Roll-call vote-Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-896. 146165 - Amos/Welper that “Resolution approving the Professional Services Agreement with Strand Associates of Madison, Wisconsin, in an amount not to exceed $58,000, for engineering and construction related services for the Anaerobic Lagoon Upgrades and Biogas End Use Study, and authorize Mayor and City Clerk to execute said document”, be adopted. Roll-call vote-Ayes: Six. Motion carried. David Dreyer, 3145 W. 4th Street, questioned if methane gas is still being used at the Waste Management facility and why the study has to be completed. Steve Hoambrecker, Waste Management Director, explained that the methane gas is being generated is used to heat the waste in a series of boilers. This project will work on harnessing methane gas at the anaerobic lagoon, which treats waste from Tyson. The value of biogas has dropped over time and the study will look for alternatives for generating profit from the methane gas. He further Page 15 of 297 October 23, 2017 Page 6 commented other cities are conducting similar studies and that it will also be used to study the lid that needs to be replaced on the lagoon. Mayor Hart questioned if other cities have an anaerobic lagoon and the potential for profit. Steve Hoambrecker explained the function of the anaerobic lagoon. Resolution adopted and upon approval by Mayor assigned No. 2017-897. 146166 - Morrissey/Powers that “Resolution approving the Professional Services Agreement with RJN Group of Des Moines, Iowa in an amount not to exceed $39,500.00, for engineering services for a collection system data analysis, and authorize the Mayor to execute said document”, be adopted. Roll-call vote-Ayes: Six. Motion carried. Steve Hoambrecker provided an overview of the contract and commented that the contract is required by the consent decree. Resolution adopted and upon approval by Mayor assigned No. 2017-898. 146167 - Morrissey/Powers that “Resolution approving the Professional Services Agreement with AECOM Technical Services, Inc. of Waterloo, Iowa, in an amount not to exceed $16,000 for the FY 2018 Sink Creek Channel Cleanout and Shaping, Contract No. 924, and authorize the Mayor to execute said document”, be adopted. Roll-call vote-Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2017-899. ORDINANCES 146168 - Welper/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, located west of 2010 W. Ridgeway Avenue”, be received, placed on file, considered and passed for the second time. Roll-call vote-Ayes: Six. Motion carried. 146169 - Welper/Amos that rules requiring ordinances to be considered and voted for passage at two prior meetings be suspended. Roll-call vote-Ayes: Five. Nays: One (Lind). Motion failed. 146170 - Morrissey/Powers that “an Ordinance amending the 2008 Traffic Code by amending Section 544 - All-Way Stop Intersections by adding Subsection (36) Shaulis Road and Ansborough Avenue”, be received, placed on file, considered and passed for the second time. Roll-call vote-Ayes: Five. Nays: One (Welper). Motion carried. Mr. Welper commented that he asked for a traffic count study of seven days and that the study concluded that traffic on Shaulis Road is heavier than on Ansborough. He further commented that he would like the ordinance rewritten to have stop signs on Ansborough with flashing approaching lights on all four corners. Mr. Amos requested that the numbers of the study be read. Mr. Welper read the results for council. Mr. Jacobs questioned if information was given about bicycle or pedestrian traffic. Mr. Welper stated the study only included vehicles. Page 16 of 297 October 23, 2017 Page 7 Mr. Morrissey commented that it sounds like a significant amount of traffic flows through the intersection and that the ordinance should proceed and additional precautions should be addressed as well. Mr. Welper commented that he would like to see flow maintained along with safety with an oncoming flashing sign at all four corners. Mr. Morrissey commented that he would be in favor of passing this reading and having the Traffic Engineer present the changes at the next meeting. Mr. Lind asked if staff had recommended any other changes. Mayor Hart stated this is the first he has heard about it. Sandie Greco, Interim Public Works Director, commented that the Traffic Engineer would prefer a four way stop and that the intersection should be studied every two years. Mayor Hart requested Mohammad Elahi provide clarification. Mohammad Elahi, Traffic Engineer, commented that the optimal solution would be a four way stop. Mayor Hart questioned the amount of people who stop at stop signs. Mohammad Elahi explained how flashing approaching lights are utilized. Mayor Hart questioned what would happen when stop signs were removed from a location that used to have stop signs. Mohammad Elahi commented that it would take adjustment but traffic would adjust. David Dreyer, 3145 W. 4th Street, questioned the amount of accidents involving cars and pedestrians at the intersection. He further requested a bicycle training and licensing program should be started in the community. Sandie Greco explained that the intersection has had 5 crashes in 3 ½ years. Mohammad Elahi commented that the number of crashes for 2017 is not yet available, but we know there wat at least one. Mr. Lind questioned what letter grade would be assigned if the signs were reversed. Mohammad Elahi explained that the level of service would be switched with the location of the stop. Mr. Amos questioned if putting a four way stop at the intersection would change the traffic flow. Mohammad Elahi explained that four way stops improve the traffic flow. He further explained that level of service notes the number of stops. Mayor Hart questioned if the area is expected to grow with increased traffic. Noel Anderson, Community Planning and Development Director, explained that the area is expected to grow with residential development. Mayor Hart commented that the he is hearing from the Traffic Engineer that a four way stop is safest. Mohammad Elahi confirmed. Mr. Powers asked if it is an option to have a stop sign with flashing lights all the way around the sign. Sandie Greco commented that it could be considered, and explained the current plan is to place beacons at the top of the signs. Page 17 of 297 October 23, 2017 Page 8 Mr. Welper commented that the delay time is less than one second by switching the signs. Mr. Morrissey requested that Mr. Welper agree to suspend the rules. 146171 - Morrissey/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. 146172 - Morrissey/Amos that “an Ordinance amending the 2008 Traffic Code by amending Section 544 - All-Way Stop Intersections by adding Subsection (36) Shaulis Road and Ansborough Avenue”, be considered and passed for third time and adopted. Roll-call vote-Ayes: Five. Nays: One (Welper). Motion carried. Ordinance adopted and upon approval by Mayor assigned No. 5423. OTHER COUNCIL BUSINESS 146173 - Lind/Amos Motion to direct City Clerk to read bids for the recycling processing facility to support the City of Waterloo's curbside recycling program and refer bids to Interim Public Works Director for review. Estimate: $32,000 Bidder Bid Amount Republic Services $117.00 per ton for processing and transportation, minus a rebate every month of as least $40.00 per ton depending on market, with a total cost per ton of $77.00 depending on market value of recyclables. Cedar Valley Recycling $55.00 per ton, with contamination of $90.00 per ton. $0.00 rebates. 98% of loads are contaminated. $65.00 per ton for not scheduled hours Monday thru Friday. Voice vote-Ayes: Six. Motion carried. ADJOURNMENT 146174 - Welper/Lind that the Council adjourn at 6:22 p.m. Voice vote-Ayes: Six. Motion carried. _____________________________ Kelley Felchle City Clerk Page 18 of 297 C ITY OF WATER LOO Council Communication R es o lutio n s etting a date of p ublic hearing as Novemb er 20, 2017 to ap p rove the req uest by S tandard Dis tribution C o mp any, Inc . fo r a s ite p lan amend ment to the “M-2,P ” P lanned Indus trial Dis tric t to allo w for the c o nstruc tio n o f a 50,000 square foot indus trial b uilding with a 26 acre layd o wn yard , lo cated jus t north of 3040 Levers ee R o ad , and instruc t C ity C lerk to p ublis h said notice. City Council Meeting: 11/6/2017 Prepared: 10/31/2016 R EV I EWER S : D epartment R eviewer Action D ate P lanning & Z oning S chroeder, Aric R ejected 10/31/2017 - 1:53 P M P lanning & Z oning Andera, Tim Approved 10/31/2017 - 3:21 P M P lanning & Z oning S chroeder, Aric Approved 11/1/2017 - 10:28 AM C lerk O ffice H igby, Nancy Approved 11/1/2017 - 10:38 AM ATTA C H M EN TS : Description Type C ouncil L tr Attachments - S tandard Distribution C over Memo S UB J E C T: R es o lution s etting a date of p ublic hearing as Novemb er 20, 2017 to approve the reques t by S tandard Dis tribution C omp any, Inc . fo r a s ite p lan amendment to the “M-2,P ” P lanned Indus trial Dis tric t to allo w fo r the cons truction of a 50,000 s q uare fo o t indus trial build ing with a 26 ac re laydown yard , lo cated jus t north o f 3040 Levers ee R oad, and ins truct C ity C lerk to pub lis h s aid no tic e. S ub mitted by:S ubmitted By: No el Anderson, C o mmunity P lanning & Develo p ment Directo r R ec o mmended Ac tio n:Ap p ro val Transmitted herewith is a req uest for a res o lutio n s etting date of hearing as No vember 20, 2017 to ap p ro ve the reques t by S tandard Dis tribution C o mp any, Inc . for a site plan amend ment to the “M-2,P ” P lanned Indus trial Dis tric t to allow for the c o nstruc tion of a 50,000 S F indus trial b uilding with a 26 acre layd o wn yard , lo cated jus t north of 3040 Levers ee R oad. T he applic ant is reques ting to cons truct a new indus trial b uilding with an acc o mp anying railyard and laydown area. T he reques t would no t ap p ear to have a negative imp act on the s urrounding neighb o rhood o r land us e. T he area is mos tly c omprised o f light ind ustrial d evelopment and the new build ing and railyard wo uld ap p ear to be in charac ter with that. T he reques t would not appear to have a negative imp act on vehic ular or p ed es trian traffic mo vements in the area. T he area is s erved by Levers ee R oad, whic h is classified as a C ollec tor S treet. Highway 218 is not loc ated far from the s ite Page 19 of 297 S ummary S tatement: in q uestion and is classified as a P rinc ipal Arterial. T he area in ques tion is zo ned “M-2,P ” P lanned Indus trial Dis tric t and has b een zo ned as s uc h s inc e March 13, 1995. S urro und ing land us es and their zo ning d es ignatio ns are as fo llo ws: North – Vac ant develo p ment gro und and the Waterloo R egional Airport, zo ned “M-2,P ” P lanned Indus trial Dis tric t. S outh – Exis ting light indus trial d evelopment, zo ned “M-1” Light Ind us trial Dis tric t. East – Vac ant develo p ment gro und and the Waterloo R egional Airp o rt, zo ned “M-2,P ” P lanned Indus trial Dis tric t. West – Levers ee R oad and the C ity o f C ed ar F alls , zoned “M-1” Light Ind ustrial Dis tric t. T he propo s ed s truc ture is 200’x 250’ (50,000 S F ) and is s ituated to the s o uthwes t of the Waterloo R egional Airport. T here will b e a 26 ac re laydown yard s urround ing the p ro p o s ed build ing with multip le rail s p urs and a future laydown yard of 10.55 acres in the future. T he parking requirements for a wareho use is o ne p arking s p ace fo r eac h two p ers o ns regularly emp lo yed on the premises . At this time it is no t kno wn how many emp lo yees will b e at the wareho use, however, with a 26 acre laydo wn yard , there appears to b e a s uffic ient amo unt o f spac e for p arking. T he p arking area shall be laid out in an o rganized fo rm to fac ilitate proper traffic flo w and mo vements. It should b e no ted that all vehicular us e areas and driveways shall be p ro p erly p aved with either c onc rete or as p halt. At their O c tober 3, 2017 meeting the P lanning, P ro gramming and Zo ning C o mmis s ion unanimo usly rec o mmended approval of the reques t, with the cond ition that the final site plan meets all applic ab le c ity c o d es , inc luding but not limited to, parking, landsc ap ing, d rainage, etc., exc ep t as spec ifically altered b y approval of the site plan amendment.. Exp enditure R equired :No ne S ource o f F und s :No ne required P olic y Issue:Land Us e and Econo mic Development, p o lic ies 1, 3 and 4. Legal Desc riptio ns : S AI D P R O P ERT Y I S L E G ALLY DES C R I BED AS : L O C AT ED W IT HIN R ELEAS E PAR C EL "D", WAT ER LO O R E G I O NAL AIR P O R T I N T HE S O UT HW ES T 1/4 O F S E C T I O N 5, T O W NS HI P 89 NO RT H, R ANG E 13 W ES T O F T HE 5th P.M., BLAC K HAW K C O UNT Y, I O WA. MO R E PART I C ULAR LY DES C R I BED AS F O L L O W S : C O MMENC I NG AT T HE S O UT HW ES T C O R NER O F S AI D S E C T I O N 5; T HENC E, N0°36'45"E 795.20' ALO NG T HE W E S T L I NE O F T HE S O U T HW E S T 1/4 O F S AI D S E C T I O N 5; T HENC E, S 89°23'15"E 33.00' T O A P O I NT O N T HE EAS T R I G HT O F WAY L I NE O F LEVER S EE R O AD, S AI D P O INT AL S O BEI NG T HE P O I NT O F BEG I NNI NG ; T HE NC E, N0°36'45"E 1189.63' ALO NG S AI D EAS T R I G HT O F WAY L I NE TO T HE NO RT HW ES T C O R NER O F R ELEAS E PAR C E L "D"; T HENC E, S 89°08'07"E 651.72' ALO NG T HE NO R T H L I NE O F S AID R ELEAS E PAR C EL Page 20 of 297 "D"; T HENC E, S 36°15'04"E 672.24'; T HENC E, S 0°36'45"W 716.50' TO A P O I NT O N T HE NO R T H R I G HT O F WAY LI NE O F C HI C AG O , C E NT R AL & PAC I F I C R AI L R O AD; T HENC E, N89°12'38"W 362.69' AL O NG S AI D NO R T H R AI LR O AD R I G HT O F WAY L I NE; T HENC E, W ES T ER LY 424.56' AL O NG T HE AR C O F A 2370.51' R ADI US C URVE, C O NC AVE NO RT HER LY, HAVI NG A C HO R D BEAR I NG O F N86°21'38"W AND A C HO R D D I S TANC E O F 423.99' AL O NG S AI D NO R T H R AI LR O AD R I G HT O F WAY L I NE; T HENC E, W ES T ER LY 272.64' AL O NG T HE AR C O F A 2557.26' R ADI US C URVE, C O NC AVE NO RT HER LY, HAVI NG A C HO R D BEAR I NG O F N80°04'51"W AND A C HO R D D I S TANC E O F 272.51' AL O NG S AI D NO R T H R AI LR O AD R I G HT O F WAY L I NE TO T HE P O I NT O F BEG I NNI NG C O NTAINI NG 27.58 AC R E S . S UBJEC T TO EAS EME NT S AND R ES T R I C T I O NS O F R EC O R D, I F ANY. Page 21 of 297 October 3, 2017 10_3_17 SPA M2P - 2850 Livingston Ln - 50000 SF bldg Page 1 of 3 REQUEST: Request by Standard Distribution Company, Inc. for a site plan amendment to the “M-2,P” Planned Industrial District to allow for the construction of a 50,000 SF industrial building with a 26 acre laydown yard, located at 2802-2850 Livingston Lane. The location in question is actually just north of 3040 Leversee Road. APPLICANT: Standard Distribution Company, Inc., 1109 Viking Road, Cedar Falls, IA 50613 GENERAL DESCRIPTION: The applicant is requesting to construct a new industrial building with an accompanying railyard and laydown area. IMPACT ON NEIGHBORHOOD & SURROUNDING LAND USE: The request would not appear to have a negative impact on the surrounding neighborhood or land use. The area is mostly comprised of light industrial development and the new building and railyard would appear to be in character with that. VEHICULAR & PEDESTRIAN TRAFFIC CONDITIONS: The request would not appear to have a negative impact on vehicular or pedestrian traffic movements in the area. The area is served by Leversee Road, which is classified as a Collector Street. Highway 218 is not located far from the site in question and is classified as a Principal Arterial. RELATIONSHIP TO RECREATIONAL TRAIL PLAN AND COMPLETE STREETS POLICY: There are no recreational trails located within the immediate vicinity of the site in question. The potential exists for more pedestrian accommodations to be extended in this area. ZONING HISTORY FOR SITE AND IMMEDIATE VICINITY: The area in question is zoned “M-2,P” Planned Industrial District and has been zoned as such since March 13, 1995. Surrounding land uses and their zoning designations are as follows: North – Vacant development ground and the Waterloo Regional Airport, zoned “M-2,P” Planned Industrial District. South – Existing light industrial development, zoned “M-1” Light Industrial District. East – Vacant development ground and the Waterloo Regional Airport, zoned “M-2,P” Planned Industrial District. West – Leversee Road and the City of Cedar Falls, zoned “M-1” Light Industrial District. DEVELOPMENT HISTORY: The area where the new building would be constructed is primarily undeveloped, however, there is light industrial development to the south that occurred in the 1960s and 1970s. BUFFERS/ SCREENING/ LANDSCAPING REQUIRED: There is no buffering or screening required as a part of this request, however, the applicant will need to submit and execute an approved landscaping plan as part of the of the building permit process. DRAINAGE: If approved, the applicant will need to submit a storm water drainage and detention plan to the Engineering Department prior to Page 22 of 297 October 3, 2017 10_3_17 SPA M2P - 2850 Livingston Ln - 50000 SF bldg Page 2 of 3 issuance of any building permits. FLOODPLAIN: No portion of the property is 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 0166F, dated July 18, 2011. PUBLIC /OPEN SPACES/ SCHOOLS: There are no schools located within the nearby vicinity. UTILITIES: WATER, SANITARY SEWER, STORM SEWER, ETC. There is a 12” sanitary sewer line located in West Airline Highway to the south at its intersection with Leversee Road. There is a 12” water main in Leversee Road that stops at the south side of the railroad tracks, and it is planned to extend that line to service this new development. RELATIONSHIP TO COMPREHENSIVE LAND USE PLAN: The Future Land Use Map designates this area as Industrial. The proposed site plan amendment 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 functions. STAFF ANALYSIS – ZONING ORDINANCE: The “M-2,P” Planned Industrial District is meant to permit the establishment of industrial parks and to provide for the orderly planned growth of industries in large tracts of land, allowing greater flexibility and diversification of land uses and building locations. It is also intended that such industrial parks be developed to maximize the potentials of industrial areas and at the same time, minimize any adverse effect upon adjacent properties in other zoning districts. Specific things that are looked at in this section of the Zoning Ordinance is orderly growth and development, traffic patterns and compatible design and use be preserved. The proposed structure is 200’x 250’ (50,000 SF) and is situated to the southwest of the Waterloo Regional Airport. There will be a 26 acre laydown yard surrounding the proposed building with multiple rail spurs and a future laydown yard of 10.55 acres in the future. The parking requirements for a warehouse is one parking space for each two persons regularly employed on the premises. At this time it is not known how many employees will be at the warehouse, however, with a 26 acre laydown yard, there appears to be a sufficient amount of space for parking. The parking area shall be laid out in an organized form to facilitate proper traffic flow and movements. It should be noted that all vehicular use areas and driveways shall be properly paved with either concrete or asphalt. At this time, no side building elevations have been submitted for review, however, staff has made contact with the architect and they are currently working on them. It should be noted that the parcel in question is listed as 2802 -2850 Livingston Lane, which is the address of the Waterloo Regional Airport’s terminal, however, the location of the building is located north of 3040 Leversee Road. When the new building is Page 23 of 297 October 3, 2017 10_3_17 SPA M2P - 2850 Livingston Ln - 50000 SF bldg Page 3 of 3 constructed, it will have an address listed off of Leversee Road. STAFF ANALYSIS – SUBDIVISION ORDINANCE: It is anticipated that a plat will be coming in the future to split the property in question off from the overall airport property. STAFF RECOMMENDATION: Therefore, staff recommends that the request for a site plan amendment in the “M-2,P” Planned Industrial District to allow for the construction of a 50,000 SF building be approved, for the following reasons: 1. The request would appear to be compatible with the surrounding area, which is primarily comprised of light industrial development. 2. The request would not appear to have a negative impact upon the surrounding area. 3. The request would not appear to have a negative impact upon vehicular and pedestrian traffic in the area. 4. The request is in conformance with the Future Land Use Map and Comprehensive Plan for this area, which designates it as Industrial. Subject to the following condition: 1. That the final site plan meets all applicable city code s, including but not limited to, parking, landscaping, drainage, etc., except as specifically altered by approval of the site plan amendment. Page 24 of 297 P a g e 2 5 o f 2 9 7 P a g e 2 6 o f 2 9 7 O. H D O O R MT L P A N E L PR E F I N . S H T . M T L . GU T T E R & D O W N S P O U T EXP. FOUNDATION H. M W A L K D O O R MTL PANELPREFIN. SHT. MTL.FASCIA H.M WALK DOOR Pa g e 2 7 o f 2 9 7 O. H D O O R PR E F I N . S H T . M T L . GU T T E R & D O W N S P O U T EX P . F O U N D A T I O N H. M W A L K D O O R MTL PANELPREFIN. SHT. MTL.FASCIA H.M WALK DOOR MT L P A N E L Pa g e 2 8 o f 2 9 7 Pa g e 2 9 o f 2 9 7 Page 30 of 297 C ITY OF WATER LOO Council Communication R es o lutio n s etting a date of p ublic hearing as Novemb er 20, 2017 to ap p rove the s ale and c o nveyance o f c ity o wned property loc ated north o f 3040 Levers ee R oad, in the amo unt o f $1.00, to S DC R eal Estate, L.L.C ., inc luding a Development Agreement, and ins truc t C ity C lerk to p ublish said no tic e. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate P lanning & Z oning S chroeder, Aric Approved 11/1/2017 - 10:18 AM C lerk O ffice H igby, Nancy Approved 11/1/2017 - 10:39 AM ATTA C H M EN TS : Description Type Development Agrement B ackup M aterial Lot L ayout B ackup M aterial S UB J E C T: R es o lution s etting a date of p ublic hearing as Novemb er 20, 2017 to approve the sale and c o nveyance o f c ity owned property lo cated no rth of 3040 Leversee R oad, in the amo unt o f $1.00, to S DC R eal Estate, L.L.C ., inc luding a Development Agreement, and ins truc t C ity C lerk to pub lis h s aid notice. S ub mitted by:S ubmitted By: No el Anderson, C o mmunity P lanning & Develo p ment Directo r R ec o mmended Ac tio n:S et d ate of hearing S ummary S tatement: T he C ity of Waterlo o is working with S tand ard Dis trib utio n fo r their expans io n plans in Waterloo. S tand ard Dis tribution will be cons tructing a new 50,000 s q. ft. d is tribution c enter on the s ite with an estimated value o f $1.8 million. T he C ity will b e deeding land and offering tax rebates at 5 years at 50% fo r the p ro ject, thro ugh the Development Agreement. Exp enditure R equired :T I F S ource o f F und s :T I F funds P olic y Issue:P o licies 1, 3, and 4 in the S trategic P lan d ealing with ec o nomic develo pment. Alternative:No t ap p rove T he C ity ac q uired this land as a part of an FAA R elease in . It has b een d es ignated and planned fo r ind ustrial development, so this projec t fits well with the goal and s urrounding land uses in this area. T he Development Agreement wo uld d eed 27.58 acres to S tand ard Page 31 of 297 Background I nformatio n: Dis tributio n fo r the p ro ject. T he projec t will inc lud e two rail spurs to allo w fo r trans loading capabilities for their bus ines s . T he C ity has b een working with the C hic ago C entral R ail and Engineers to develo p an overall ind us trial p ark layout for this s ite and the ad d itional 240 acres available to the no rth, alo ng Levers ee R o ad , fo r develo p ment. T he C ity is working to ward cons truction of a pub lic rail line that will allo w fo r private s p urs fo r b usines s es in the area. S anitary sewer will als o be cons tructed to the s ite and Water Works is cons tructing a line alo ng Levers ee R o ad to allow for further d evelopment in the area. Legal Desc riptio ns : L O C AT ED W IT HIN R ELEAS E PAR C EL "D", WAT ER LO O R E G I O NAL AIR P O R T I N T HE S O UT HW ES T 1/4 O F S E C T I O N 5, T O W NS HI P 89 NO RT H, R ANG E 13 W ES T O F T HE 5th P.M., BLAC K HAW K C O UNT Y, I O WA. MO R E PART I C ULAR LY DES C R I BED AS F O L L O W S : C O MMENC I NG AT T HE S O UT HW ES T C O R NER O F S AI D S E C T I O N 5; T HENC E, N0°36'45"E 795.20' ALO NG T HE W E S T L I NE O F T HE S O U T HW E S T 1/4 O F S AI D S E C T I O N 5; T HENC E, S 89°23'15"E 33.00' T O A P O I NT O N T HE EAS T R I G HT O F WAY L I NE O F LEVER S EE R O AD, S AI D P O INT AL S O BEI NG T HE P O I NT O F BEG I NNI NG ; T HE NC E, N0°36'45"E 1189.63' ALO NG S AI D EAS T R I G HT O F WAY L I NE TO T HE NO RT HW ES T C O R NER O F R ELEAS E PAR C E L "D"; T HENC E, S 89°08'07"E 651.72' ALO NG T HE NO R T H L I NE O F S AID R ELEAS E PAR C EL "D"; T HENC E, S 36°15'04"E 672.24'; T HENC E, S 0°36'45"W 716.50' TO A P O I NT O N T HE NO R T H R I G HT O F WAY LI NE O F C HI C AG O , C E NT R AL & PAC I F I C R AI L R O AD; T HENC E, N89°12'38"W 362.69' AL O NG S AI D NO R T H R AI LR O AD R I G HT O F WAY L I NE; T HENC E, W ES T ER LY 424.56' AL O NG T HE AR C O F A 2370.51' R ADI US C URVE, C O NC AVE NO RT HER LY, HAVI NG A C HO R D BEAR I NG O F N86°21'38"W AND A C HO R D D I S TANC E O F 423.99' AL O NG S AI D NO R T H R AI LR O AD R I G HT O F WAY L I NE; T HENC E, W ES T ER LY 272.64' AL O NG T HE AR C O F A 2557.26' R ADI US C URVE, C O NC AVE NO RT HER LY, HAVI NG A C HO R D BEAR I NG O F N80°04'51"W AND A C HO R D D I S TANC E O F 272.51' AL O NG S AI D NO R T H R AI LR O AD R I G HT O F WAY L I NE TO T HE P O I NT O F BEG I NNI NG C O NTAINI NG 27.58 AC R E S . S UBJEC T TO EAS EME NT S AND R ES T R I C T I O NS O F R EC O R D, I F ANY. Page 32 of 297 P a g e 3 3 o f 2 9 7 P a g e 3 4 o f 2 9 7 P a g e 3 5 o f 2 9 7 P a g e 3 6 o f 2 9 7 P a g e 3 7 o f 2 9 7 P a g e 3 8 o f 2 9 7 P a g e 3 9 o f 2 9 7 P a g e 4 0 o f 2 9 7 P a g e 4 1 o f 2 9 7 P a g e 4 2 o f 2 9 7 P a g e 4 3 o f 2 9 7 P a g e 4 4 o f 2 9 7 P a g e 4 5 o f 2 9 7 P a g e 4 6 o f 2 9 7 P a g e 4 7 o f 2 9 7 P a g e 4 8 o f 2 9 7 P a g e 4 9 o f 2 9 7 P a g e 5 0 o f 2 9 7 O. H D O O R MT L P A N E L PR E F I N . S H T . M T L . GU T T E R & D O W N S P O U T EXP. FOUNDATION H. M W A L K D O O R MTL PANELPREFIN. SHT. MTL.FASCIA H.M WALK DOOR Pa g e 5 1 o f 2 9 7 O. H D O O R PR E F I N . S H T . M T L . GU T T E R & D O W N S P O U T EX P . F O U N D A T I O N H. M W A L K D O O R MTL PANELPREFIN. SHT. MTL.FASCIA H.M WALK DOOR MT L P A N E L Pa g e 5 2 o f 2 9 7 C ITY OF WATER LOO Council Communication R es o lutio n s etting a date of p ublic hearing as Novemb er 20, 2017 to ap p rove the s ale and c o nveyance o f c ity o wned property loc ated near C halmers Drive and at the No rtheas t corner o f Ans borough and Upto n Avenue, in the amount o f $15,001, to Village C reek R entals , LL C , inc luding a Development Agreement, and instruc t C ity C lerk to p ublis h s aid notice. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate P lanning & Z oning S chroeder, Aric Approved 11/1/2017 - 10:55 AM C lerk O ffice H igby, Nancy Approved 11/1/2017 - 10:59 AM ATTA C H M EN TS : Description Type Upton L ot M ap B ackup M aterial Development Agreement B ackup M aterial S UB J E C T: R es o lution s etting a date of p ublic hearing as Novemb er 20, 2017 to approve the sale and c o nveyance o f c ity owned property lo cated near C halmers Drive and at the No rtheas t corner of Ans borough and Upto n Avenue, in the amo unt of $15,001, to Village C reek R entals , LLC , includ ing a Develop ment Agreement, and ins truc t C ity C lerk to publis h s aid notice. S ub mitted by:S ubmitted By: No el Anderson, C o mmunity P lanning & Develo p ment Directo r R ec o mmended Ac tio n:S et d ate of hearing S ummary S tatement: T he C ity of Waterlo o is working with Village C reek R entals, LLC to allow fo r c o nstruc tio n o f residential p ro p erties on the lo ts lo cated at 1005 C halmers,1017 C halmers and a parc el of land at the northeast c o rner of Up ton Ave and Ans borough Ave with values no les s than $50,000. T he d eveloper will als o b e c o nstruc ting a 3,250 s q uare fo o t commerc ial building with a to tal value o f no less than $140,000. Up o n the issuanc e of a certificate o f oc cup anc y fo r eac h res id ential p ro p erty the d eveloper will receive $5,000.00 as reimburs ement of the allo c ated portio n o f the P urc has e P rice and an additio nal $5,000.00 as an ad d itional incentive payment for a total incentive o f $10,000.00 fo r eac h res idential p ro p erty per the new 657A lo t d evelop ment polic y. Exp enditure R equired :$10,000 per res id ential Unit p er new 657A lo t d evelopment p o licy. S ource o f F und s :Bond P olic y Issue:P o licies 1, 3, and 4 in the S trategic P lan d ealing with ec o nomic develo pment. Page 53 of 297 Alternative:No t ap p rove Background I nformatio n: T he C ity ac q uired the lots at 1005 C halmers and 1017 C halmers thro ugh the s tate 657A proc es s for d ilap id ated s tructures . T he C ity p urc hased the lo t lo cated at the no rtheas t corner of Up ton Ave and Ansborough Avenue in 2015 for develo p mental purp o s es . Legal Desc riptio ns : Lo t 6, Bloc k 16 Downing P lace, C ity o f Waterlo o , Iowa (1005 C halmers Avenue, Waterlo o ) Als o : Lo t 7 Bloc k 16, Downing P lace, C ity o f Waterlo o , Iowa (1017 C halmers Avenue, Waterlo o ) Als o : A p arcel of land lo cated in part of Lo ts "A" and "B" in Hummel Addition to Waterlo o , I o wa, des c rib ed as fo llo ws: Beginning at the S outheas t C o rner o f said Lot No. "B"; thenc e no rth 01 d egrees 33 minutes 52 sec o nds Eas t, 100.02 feet along the East line of s aid Lo t No . "B"; thenc e North 89 degrees 25 minutes 28 s econd s Wes t, 116.68 feet to a po int on the Eas t line o f the Wes t 11 feet o f said Lo t No . "B"; thenc e North 01 Degrees 27 minutes 26 s ec o nds Eas t, 223.92 feet alo ng s aid line; thence S outh 60 d egrees 38 minutes 58 s ec o nds West, 76.67 feet; thenc e S outh 01 degrees 22 minutes 05 sec ond s Wes t. 285.67 feet to a p o int o n the S outh line o f said Lo t No . "A"; thenc e S o uth 89 degrees 25 minutes 28 sec o nds Eas t, 181.91 feet along s aid line to the point o f beginning, exc ept the Easterly 20 feet thereo f in even width. Page 54 of 297 Upton Ave / City of Waterloo, I ow aNote: Base map data source is Black Hawk County. This map does not represent a survey, no liability is assumed for the accuracy of the data delineated herein, either expressed or implied by Black Hawk County, the Black Hawk County Assessor, or their employees. The City of Waterloo makes no warranty, express or implied, as to the accuracy of the information shown on this map, and expressly disclaims liability for the accuracy thereof. Users should refer to official plats, surveys, recorded deeds, etc. located at the Black Hawk County Assessor’s Office for complete and accurate information. A n s b o r o u g h A v e Page 55 of 297 P a g e 5 6 o f 2 9 7 P a g e 5 7 o f 2 9 7 P a g e 5 8 o f 2 9 7 P a g e 5 9 o f 2 9 7 P a g e 6 0 o f 2 9 7 P a g e 6 1 o f 2 9 7 P a g e 6 2 o f 2 9 7 Exhibit “A” Legal Description Lot 6, Block 16 Downing Place, City of Waterloo, Iowa (1005 Chalmers Avenue, Waterloo) Also: Lot 7 Block 16, Downing Place, City of Waterloo, Iowa (1017 Chalmers Avenue, Waterloo) Also: A parcel of land located in part of Lots "A" and "B" in Hummel Addition to Waterloo, Iowa, described as follows: Beginning at the Southeast Corner of said Lot No. "B"; thence north 01 degrees 33 minutes 52 seconds East, 100.02 feet along the East line of said Lot No. "B"; thence North 89 degrees 25 minutes 28 seconds West, 116.68 feet to a point on the East line of the West 11 feet of said Lot No. "B"; thence North 01 Degrees 27 minutes 26 seconds East, 223.92 feet along said line; thence South 60 degrees 38 minutes 58 seconds West, 76.67 feet; thence South 01 degrees 22 minutes 05 seconds West. 285.67 feet to a point on the South line of said Lot No. "A"; thence South 89 degrees 25 minutes 28 seconds East, 181.91 feet along said line to the point of beginning, except the Easterly 20 feet thereof in even width. Page 63 of 297 C ITY OF WATER LOO Council Communication R es o lutio n approving preliminary p lans, spec ific ations , fo rm of contrac t, etc ., s etting d ate o f bid o p ening as December 14, 2017 and d ate o f pub lic hearing as December 18, 2017 for the c ons tructio n o f a vehicle/evidenc e s to rage facility, and instruc t the C ity C lerk to pub lis h s aid notic e. City Council Meeting: 11/6/2017 Prepared: 10/31/2017 R EV I EWER S : D epartment R eviewer Action D ate P olice Department K rogh, Frank Approved 10/31/2017 - 12:53 P M C lerk O ffice H igby, Nancy Approved 11/1/2017 - 10:14 AM ATTA C H M EN TS : Description Type S torage B uilding P lans B ackup M aterial Notice to B idders B ackup M aterial S UB J E C T: R es o lution approving preliminary p lans, s p ec ific ations , fo rm of contrac t, etc ., setting date of b id opening as Decemb er 14, 2017 and d ate o f public hearing as Dec ember 18, 2017 for the c ons truc tio n o f a vehicle/evidence s torage fac ility, and instruc t the C ity C lerk to pub lis h s aid no tic e. S ub mitted by:S ubmitted By: C ap tain F rank Kro gh R ec o mmended Ac tio n: Authorize the P o lice Dep artment to s eek bids fo r the cons tructio n o f a vehicle /evidenc e s torage fac ility, setting the d ate o f bid o p ening as Dec ember 14, 2017 and the d ate o f P ublic Hearing o f Dec emb er 18,2017 , and ins truct the C ity C lerk to p ublis h s aid notice. S ummary S tatement: T he Waterlo o P olic e Department c urrently s tores vehicles at a sto rage facility that is not big eno ugh o r ac cessible for wrec kers to enter and put c ars inside. A new s torage fac ility will be cons truc ted to s tore vehicles that have b een s eized as evid enc e and some that are waiting to be fo reieted as drug p ro ceeds until they c an b e disposed o f or s old at auc tion. Exp enditure R equired :Yes S ource o f F und s :G eneral O bligation Bo nds P olic y Issue:N/A Alternative: If this building is no t rep laced the c ity c ould be liab le for d amage that can inc ur b y s to ring thes e vehicles in a sto rage fac ility that is not temp erature controlled c aus ing d amage to the vehic les lo wering their value. Waterlo o P o lic e Department seizes vehic les as d rug proc eed s under Io wa Page 64 of 297 Background I nformatio n: law. T hese vehic les as well as other vehic les that have b een s eized as evidence are s tored at a small facility that is not temp erature c o ntro lled and inac cessible for wrec kers. It s o me times takes s everal years for the c o urts to d ecided what to do with thes e vehic les and the c ity is liab le to maintain the vehicles co nditio n. After many years o f s torage in a facility that is no t a good environment the vehicles cond ition is damaged by the weather and animals that get into the facility. T he fac ility is als o o wned by a company that is in c urrent litigatio n with another p arty that c ould c ause us to lo o s e the ab ility to store vehicle there. If this happens we will have no sto rage fac ility. We p lan on build ing a s torage fac ility that would be temperature controlled and s ecure fo r the future red uc ing our liab ility. Legal Desc riptio ns :N/A Page 65 of 297 P a g e 6 6 o f 2 9 7 P a g e 6 7 o f 2 9 7 P a g e 6 8 o f 2 9 7 P a g e 6 9 o f 2 9 7 P a g e 7 0 o f 2 9 7 P a g e 7 1 o f 2 9 7 P a g e 7 2 o f 2 9 7 P a g e 7 3 o f 2 9 7 P a g e 7 4 o f 2 9 7 P a g e 7 5 o f 2 9 7 CITY OF WATERLOO, IOWA WATERLOO POLICE DEPARTMENT NOTICE OF PUBLIC HEARING On Proposed Specifications and the NOTICE TO BIDDERS FY 2018 POLICE VEHICLE/EVIDENCE STORAGE FACILITY PROJECT NON-MANDATORY PRE-BID CONFERENCE 10:00 a.m., December 5th, 2017 at Waterloo Police Department, 715 Mulberry Street, Waterloo, Iowa. RECEIVING OF BIDS Sealed proposals will be received by the City Clerk of the City of Waterloo, Iowa, at her office in City Hall, Waterloo, Iowa, on December 14th, 2017 until1:00 p.m., for the FY2018 POLICE VEHICLE /EVIDENCE STORAGE FACILITY PROJECT. OPENING OF BIDS All proposals received for FY2018 PROPERTY DIVISION BUILDING PROJECT will be opened in the First Floor Conference Room in City Hall, Waterloo, Iowa on Thursday, December 14th, 2017 until 1:00 p.m., and the proposals will be referred to the Waterloo Police Department for recommendation of award. PUBLIC HEARING Notice is hereby given that the Waterloo City Council will conduct a public hearing on the proposed Specifications and Form of Contract for the FY2018 POLICE VEHICLE/EVIDENCE STORAGE FACILITY PROJECT at 5:30 p.m. on Monday, December 18th, 2017. The hearing will be held in the Council Chambers in Waterloo City Hall. The contract documents are on file in the City Clerk's office, 715 Mulberry St. and the Waterloo Police Department, 715 Mulberry Street, Waterloo, Iowa, for public examination. Any person interested may file written objection with the City Clerk before the date set for the hearing or appear and make objection at the meeting. SCOPE OF WORK The Contractor shall provide all labor and materials necessary for the FY2018 POLICE VEHICLE/EVIDENCE FACILITY PROJECT in accordance with these plans and specifications. CONTRACT PERIOD The work shall be completed no later than June 22, 2018. PROPOSALS SUBMITTED All bids must be submitted on forms supplied by the Waterloo Police Department. Page 76 of 297 BID SECURITY REQUIRED All bids must be accompanied, in a separate envelope, by a certified or cashier's check drawn on an Iowa bank chartered under the laws of the United States, or a certified share draft drawn on a Credit Union in Iowa chartered under the laws of the United States, or a bid bond 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 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, the bid security may be retained by said City as agreed liquidated damages. If Bid Bond is used, it must be signed by both the bidder and the surety or the surety's agent. Signature of surety's agent must be supported by accompanying Power of Attorney. CONTRACT AWARD The City shall award the Contract to the responsible Bidder(s) whose bid, conforming to the Specifications, is most advantageous to the City and the Waterloo Leisure Services Commission; price and other factors considered. The intention is not to award the contract at the time of bid opening, but to award the contract after review of bids and bidder information by the City and Waterloo Leisure Services Commission such that the award is made within thirty (30) days after bid opening. The City reserves the right to waive any and all parts of a specific bid. BOND The successful Bidder shall furnish a Performance and Payment Bond, within ten (10) days after notification of acceptance of the bid, in an amount equal to one hundred percent (100%) of the contract price. The Bond is 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 operation of the Contractor. AFFIRMATIVE ACTION PROGRAM The successful Bidder and any subcontractors will be required to execute and have approved an Affirmative Action Program or Update before beginning work on the project, if they have been awarded an aggregate of $10,000 in City projects during the current calendar year. METHOD OF PAYMENT TO CONTRACTOR The Contractor will be paid against monthly estimates of the work completed and work approved by the Waterloo Police Department staff. Final payment will be made thirty one (31) days after completion of the work and acceptance by the Waterloo Police Department staff. Before final payment is made for said work, vouchers showing that all subcontractors and workmen and all persons furnishing materials have been fully paid for such materials and labor will be required. Published pursuant to the provision of Division VI of Chapter 384 the City Code of Iowa and upon order of the City Council of said Waterloo, Iowa, on the City of Waterloo, Iowa Kelley Felchle City Clerk Page 77 of 297 C ITY OF WATER LOO Council Communication R eq uest from Jac k Wils o n fo r a waiver for a c onc rete driveway loc ated at 827 and 829 E. R idgeway Avenue with the eliminatio n o f the s id ewalk sec tion d ue to the inab ility to meet grade req uirements. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate E ngineering T horson, E ric Approved 11/1/2017 - 11:42 AM C lerk O ffice H igby, Nancy Approved 11/1/2017 - 11:52 AM ATTA C H M EN TS : Description Type D W Waiver_829-827 E R idgeway Ave C over Memo S UB J E C T: R eq uest fro m Jac k Wils o n fo r a waiver fo r a c oncrete driveway loc ated at 827 and 829 E. R idgeway Avenue with the eliminatio n o f the s id ewalk s ectio n d ue to the inability to meet grade requirements . S ub mitted by:S ubmitted By: Eric T ho rs o n, P E, C ity Engineer R ec o mmended Ac tio n:R ecommended fo r approval by the C ity Engineer. S ummary S tatement: Attached is a req ues t for cons tructio n of a c o nc rete d riveway with the elimination of the s idewalk s ectio n d ue to the inability to meet req uirements o f the d riveway and sidewalk s p ecific atio ns , S ec tion 18, to be lo cated at 829-827 E R idgeway Avenue. I have reviewed this req uest and rec o mmend its approval sub ject to the fo llo wing provis io ns : 1. Work to be p erfo rmed by an app ro ved and b o nded contrac tor. 2. A permit is to b e obtained fro m the offic e of the C ity Engineer prior to cons truc tion. 3. All wo rk s hall b e performed und er the s up ervision of the C ity Engineer at no cos t to the C ity of Waterloo. $7.00 cash fo r the p urpose o f rec o rd ing this waiver and a c o p y o f the legal d es cription have b een p ro vided to the C ity C lerk’s offic e. Background I nformatio n: T his is a waiver of the C ity’s S tand ard S p ec ific ations for Driveway C o nstruc tio n. It requires C ounc il approval s o that it c an b e rec o rd ed to the p ro p erty, s o that the waiver requirements run with the p ro p erty ownership. Page 78 of 297 Legal Desc riptio ns : UNP L AT T ED W LO O W ES T S 248 F T O F T HAT PAR T S E 1/4 S EC 35 T 89 R 13 C O M AT P T 223.7 F T E O F S W C O R S E S AI D S EC T H N TO P T 30 F T S O F S LI NE BL K 10 LINC O LN HG T S & 224.6 F T E O F W LI NE S E T H E 224.6 F T T H S TO P T O N S L I NE S E C 223.7 F T E O F BEG T H W TO B E G E XC W 75 F T & EXC E 75 F T ALS O E XC S T R EET Page 79 of 297 P a g e 8 0 o f 2 9 7 C ITY OF WATER LOO Council Communication R eq uest from I o wa Heartland Habitat fo r Humanity for a waiver fo r a conc rete d riveway lo cated at 721 Eureka S treet and authorizing the c o nstruc tion of a c onc rete driveway and plac ing a driveway or s id ewalk on c ity right- o f-way on an unimp ro ved s treet. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate E ngineering T horson, E ric Approved 11/1/2017 - 11:40 AM C lerk O ffice H igby, Nancy Approved 11/1/2017 - 11:52 AM ATTA C H M EN TS : Description Type D W Waiver_721 E ureka S t.C over Memo S UB J E C T: R eq uest fro m Io wa Heartland Habitat for Humanity fo r a waiver for a concrete d riveway lo cated at 721 Eureka S treet and authorizing the cons truction of a c o nc rete d riveway and plac ing a d riveway o r sidewalk on city right-o f-way on an unimproved street. S ub mitted by:S ubmitted By: Eric T ho rs o n, P E, C ity Engineer R ec o mmended Ac tio n: R ecommend fo r approval by the C ity Engineer. T his waiver is needed d ue to the plac ement o f a d riveway o r sidewalk on C ity right-of-way o n an unimp ro ved s treet. I have reviewed this req uest and rec o mmend its approval sub ject to the fo llo wing provis io ns . S ummary S tatement: 1.Work to b e performed b y an ap p ro ved and bond ed c o ntracto r. 2.A p ermit is to b e obtained fro m the o ffic e of the C ity Engineer p rio r to cons truction. 3.All wo rk s hall be p erfo rmed under the s upervis io n o f the C ity Engineer and at no c o s t to the C ity o f Waterloo. $7.00 cash fo r the p urpose o f rec o rd ing this waiver and a c o p y o f the legal d es cription have b een p ro vided to the C ity C lerk's offic e. Legal Desc riptio ns :L O T 12 I RVING S Q UAR E ADDI T I O N Page 81 of 297 P a g e 8 2 o f 2 9 7 C ITY OF WATER LOO Council Communication R eq uest from Hawkeye C ommunity C o llege for a waiver fo r a concrete driveway lo cated at 6315 Hammond Avenue and autho rizing the cons tructio n o f a c o nc rete d riveway and p lacing a d riveway o r sidewalk o n city right-of-way on an unimproved street. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate E ngineering T horson, E ric Approved 11/1/2017 - 11:41 AM C lerk O ffice H igby, Nancy Approved 11/1/2017 - 11:53 AM ATTA C H M EN TS : Description Type D W Waiver_6315 H ammond Ave C over Memo S UB J E C T: R eq uest fro m Hawkeye C ommunity C ollege for a waiver fo r a concrete d riveway loc ated at 6315 Hammond Avenue and autho rizing the cons truc tion o f a concrete d riveway and p lacing a driveway o r s idewalk o n city right-o f- way on an unimp ro ved s treet. S ub mitted by:S ubmitted By: Eric T ho rs o n, P E, C ity Engineer R ec o mmended Ac tio n: R ecommend fo r approval by the C ity Engineer. T his waiver is needed d ue to the plac ement o f a d riveway o r sidewalk on C ity right-of-way o n an unimp ro ved s treet. I have reviewed this req uest and rec o mmend its approval sub ject to the fo llo wing provis io ns . S ummary S tatement: 1.Work to b e performed b y an ap p ro ved and bond ed c o ntracto r. 2.A p ermit is to b e obtained fro m the o ffic e of the C ity Engineer p rio r to cons truction. 3.All wo rk s hall be p erfo rmed under the s upervis io n o f the C ity Engineer and at no c o s t to the C ity o f Waterloo. $7.00 cash fo r the p urpose o f rec o rd ing this waiver and a c o p y o f the legal d es cription have b een p ro vided to the C ity C lerk's offic e. Legal Desc riptio ns : UNP L AT T ED W LO O W ES T PART S W NW S EC 23 T 88 R 13 BEG AT A P T 875.8 F T N O F S W C O R NW 1/4 T H N 130 F T T H E 200 F T T H S 130 F T T H W 200 F T TO P T O F BEG EX C HW Y Page 83 of 297 P a g e 8 4 o f 2 9 7 C ITY OF WATER LOO Council Communication R eq uest from Lind a G aul fo r a waiver to us e c olored concrete on the conc rete ap p ro ach loc ated at 4238 S uburb an Drive. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate E ngineering T horson, E ric R ejected 11/1/2017 - 11:45 AM E ngineering R oss, T racia Approved 11/1/2017 - 11:44 AM E ngineering T horson, E ric Approved 11/1/2017 - 12:34 P M C lerk O ffice H igby, Nancy Approved 11/1/2017 - 12:43 P M ATTA C H M EN TS : Description Type D W Waiver_4238 S uburban D r C over Memo S UB J E C T:R eq uest fro m Lind a G aul fo r a waiver to us e c olored concrete on the concrete ap p ro ach loc ated at 4238 S ub urb an Drive. S ub mitted by:S ubmitted By: Eric T ho rs o n, P E, C ity Engineer R ec o mmended Ac tio n:R ecommendatio n o f approval by the C ity Engineer. S ummary S tatement: T his waiver is needed b ecaus e ho meo wner is wanting to us e colored co nc rete in the c o nc rete ap p ro ac h. I have reviewed this req uest and rec o mmend its approval sub ject to the fo llo wing provis io ns : 1. Work to be p erfo rmed by an app ro ved and b o nded contrac tor. 2. A permit is to b e obtained fro m the offic e of the C ity Engineer prior to cons truction. 3. All work s hall be p erfo rmed under the s upervis io n o f the C ity Engineer and at no c o s t to the C ity o f Waterlo o . $7.00 cash fo r the p urpose o f rec o rd ing this waiver and a c o p y o f the legal d es cription have b een p ro vided to the C ity C lerk’s offic e. Legal Desc riptio ns :F I R S T ADDI T I O N TO S UBUR BAN HEIG HT S LO T 12 Page 85 of 297 P a g e 8 6 o f 2 9 7 C ITY OF WATER LOO Council Communication R es o lutio n approving preliminary p lans, spec ific ations , b id doc uments, etc ., s etting a date of b id opening as No vember 16, 2017, and setting a date of pub lic hearing as Novemb er 20, 2017, fo r the F lo w Eq ualization F acility O verflow C onnec t to S atellite W P C F, C ity C o ntract No. 880, and ins truct C ity C lerk to p ublish notice. City Council Meeting: 11/6/2017 Prepared: 11/2/2017 R EV I EWER S : D epartment R eviewer Action D ate Waste Management H oambrecker, S teven Approved 11/2/2017 - 5:37 P M C lerk O ffice E ven, L eAnn Approved 11/2/2017 - 5:39 P M S UB J E C T: R es o lution approving preliminary p lans, s p ec ific ations , b id doc uments, etc ., s etting a date of b id opening as No vember 16, 2017, and setting a date o f p ublic hearing as Novemb er 20, 2017, for the F lo w Eq ualizatio n F acility O verflo w C onnec t to S atellite W P C F, C ity C ontrac t No . 880, and ins truc t C ity C lerk to p ublis h no tic e. S ub mitted by:S ubmitted By: S teven Ho amb recker, Direc to r, Was te Management S ervic es R ec o mmended Ac tio n:To ap p rove s pec ificatio ns, etc. and taking of b id s , and s et the date of bid o p ening and hearing. S ummary S tatement:T he bid opening and pub lic hearing d ates have b een changed . Exp enditure R equired :Ap p ro x $700,000 S ource o f F und s :S R F Page 87 of 297 C ITY OF WATER LOO Council Communication Motio n to rec eive and p lace o n file the 2016 Aud it o f the Waterlo o Water Wo rks . City Council Meeting: 11/6/2017 Prepared: 10/18/2017 R EV I EWER S : D epartment R eviewer Action D ate Water Works M ahler, M att Approved 10/18/2017 - 5:45 P M C lerk O ffice H igby, Nancy Approved 10/27/2017 - 10:58 AM ATTA C H M EN TS : Description Type 2016 Audit R eport - Waterloo Water Works C over Memo S UB J E C T:Motio n to rec eive and p lace o n file the 2016 Aud it o f the Waterlo o Water Works . S ub mitted by:S ubmitted By: Matt Mahler, Water Works G eneral Manager R ec o mmended Ac tio n:Motio n to rec eive and p lace o n file the 2016 Aud it o f the Waterlo o Water Works . S ummary S tatement: T he 2016 Audit R eport of the Waterloo Water Works was rec eived and filed b y the Water Wo rks Board o f Trus tees at their regular meeting of O c tob er 18, 2017. Exp enditure R equired :No C ity funds are required for this ac tion. S ource o f F und s :Waterlo o Water Wo rks o p erating funds, p rimarily generated fro m water s ales . Page 88 of 297 WATERLOO WATER WORKS A COMPONENT UNIT OF THE CITY OF WATERLOO, IOWA) FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEARS ENDED DECEMBER 31, 2016 AND 2015 S CliftonLarsonAllen LLP S J) WEALTH ADVISORY I OUTSOURCING Page 89 of 297 PAGE INTENTIONALLY LEFT BLANK. 1 Page 90 of 297 WATERLOO WATER WORKS TABLE OF CONTENTS YEARS ENDED DECEMBER 31, 2016 AND 2015 INTRODUCTORY SECTION ORGANIZATION SCHEDULE 1 FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 2 MANAGEMENT'S DISCUSSION AND ANALYSIS 4 FINANCIAL STATEMENTS STATEMENTS OF NET POSITION 9 STATEMENTS OF REVENUES, EXPENSES, AND CHANGE IN NET POSITION 11 STATEMENTS OF CASH FLOWS 12 NOTES TO BASIC FINANCIAL STATEMENTS 14 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS FOR WATERLOO WATER WORKS PENSION PLAN 34 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR WATERLOO WATER WORKS PENSION PLAN 35 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION FOR WATERLOO WATER WORKS PENSION PLAN 36 IPERS SCHEDULE OF THE WATER WORKS' PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 37 IPERS SCHEDULE OF WATER WORKS' CONTRIBUTIONS 38 SUPPLEMENTARY INFORMATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN NET POSITION -BUDGET AND ACTUAL (CASH BASIS) 39 NOTE TO SUPPLEMENTARY INFORMATION 40 OTHER REPORTS SECTION INDEPENDENT AUDITORS' 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 41 SCHEDULE OF FINDINGS AND RESPONSES 43 Page 91 of 297 PAGE INTENTIONALLY LEFT BLANK. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I 0 0 Page 92 of 297 INTRODUCTORY SECTION Page 93 of 297 PAGE INTENTIONALLY LEFT BLANK. Page 94 of 297 WATERLOO WATER WORKS ORGANIZATION SCHEDULE DECEMBER 31, 2016 Board of Trustees Title Term Expires Terry Kuntz Chair 1/12/2018 Mary Potter Vice-Chair 1/12/2022 Scott Wienands Trustee 2/3/2020 Administration Dennis Clark Secretary, Treasurer, and General Manager Rick Wilberding Assistant Treasurer and Distribution Manager Mary Ratkovich Assistant Treasurer and Office Manager Tim Robbins Water Production Manager 1) Page 95 of 297 PAGE INTENTIONALLY LEFT BLANK. Page 96 of 297 FINANCIAL SECTION Page 97 of 297 PAGE INTENTIONALLY LEFT BLANK. Page 98 of 297 CliftonLarsonAllen LLP CLAconnect.com Clifton LarsonAllen INDEPENDENT AUDITORS' REPORT Board of Trustees Waterloo Water Works Waterloo, Iowa Report on the Financial Statements We have audited the accompanying financial statements of Waterloo Water Works (the Water Works), a component unit of the City of Waterloo, Iowa as of and for the years ended December 31, 2016 and 2015, and the related notes to the financial statements, which collectively comprise the Water Works' 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. Auditors'Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' 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 Water Works' 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 Water Works' 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 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 opinion. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Waterloo Water Works as of December 31, 2016 and 2015, and the respective changes in its financial position and cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America. A member of Nexia 2) International Page 99 of 297 Board of Trustees Waterloo Water Works 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 employer contributions for Waterloo Water Works pension plan, schedule of changes in net pension liability and related ratios for Waterloo Water Works pension plan, (PERS schedule of the Water Works' proportionate share of the net pension liability, and IPERS schedule of Water Works' contributions, 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 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 Water Works' basic financial statements. The Statement of Revenues, Expenditures and Changes in Net Position — Budget and Actual (Cash Basis) is presented for purposes of additional analysis and is not a required part of the basic financial statements. The Statement of Revenues, Expenditures and Changes in Net Position — Budget and Actual (Cash Basis) has not been subjected to the auditing procedures applied in the audit 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 September 8, 2017, on our consideration of Waterloo Water Works' internal control over financial reporting and on 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 result 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 Waterloo Water Works' internal control over financial reporting and compliance. Ll>i CliftonLarsonAllen LLP Cedar Rapids, Iowa September 8, 2017 3) Page 100 of 297 WATERLOO WATER WORKS MANAGEMENT'S DISCUSSION AND ANALYSIS YEARS ENDED DECEMBER 31, 2016 AND 2015 The management's discussion and analysis is designed to offer readers of the Water Works' financial statements a narrative overview and analysis of the financial activities of the Water Works for the years ended December 31, 2016 and 2015. Readers are encouraged to read the Management's Discussion and Analysis in conjunction with the Water Works' financial statements. Financial Highlights The Water Works' assets exceeded its liabilities by $34,567,102 as of December 31, 2016. Of this amount, approximately $7,723,273 may be used to meet ongoing obligations to the customers and creditors. The remaining net position consists of the Water Works' net investment in capital assets. The operating revenue of the Water Works exceeded operating expenses by $2,541,799 and 2,396,126 for the years ended December 31, 2016 and 2015, respectively. As of December 31, 2016, the Water Works' current assets exceeded total current liabilities by 10,325,208. Overview of the Financial Statements Management's discussion and analysis is intended to serve as an introduction to the Water Works' basic financial statements. The Water Works is a single purpose component unit of the City of Waterloo, Iowa (City). The Water Works provides water to its customers at rates designed to recover the cost of providing the water, including costs associated with installation and maintenance of water pumping, storage and transmission systems. As a result, the Water Works prepares financial statements as a single enterprise fund in a manner similar to a private-sector business. The statements of net position present information on all of the Water Works' assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between the two 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 Water Works is improving or deteriorating. The statements of revenue, expenses, and changes in net position present information showing how the Water Works' net position changed during the 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 the related cash flows. Thus, revenue and expenses are reported in this statement for some transactions that will result in cash flows in the following year. The statements of cash flows present information showing major sources and uses of cash by four types of activities. The activities are operating; noncapital financing; capital and related financing; and investing. Also included is a schedule which reconciles income from operations to net cash provided by operating activities. The basic financial statements can be found on pages 9 through 13 of this report. 4) I Page 101 of 297 WATERLOO WATER WORKS MANAGEMENT'S DISCUSSION AND ANALYSIS YEARS ENDED DECEMBER 31, 2016 AND 2015 Overview of the Financial Statements (Continued) The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the basic financial statements. Notes are considered to be an integral part of financial statements prepared in accordance with generally accepted accounting principles. The notes to the financial statements can be found on pages 14 through 33 of this report. Financial Analysis As noted earlier, net position may serve over time as a useful indicator of the Water Works' financial position. The Water Works' assets and deferred outflows exceeded its liabilities and deferred inflows by 34,567,102, $31,295,876, and $31,580,863 on December 31, 2016, 2015, and 2014, respectively. The following is a summary of the composition of net position as of December 31: Table 1 STATEMENT OF NET POSITION 2016 2015 2014 Current Assets 12,414,366 $ 9,371,930 $ 8,085,247 Noncurrent, Noncapital Assets 419,155 456,476 431,134 Capital Assets, Net of Accumulated Depreciation 26,910,951 26,086,148 25,291,492 Total Assets 39,744,472 35,914,554 33,807,873 Deferred Outflows of Resources 911,448 669,216 Current and Other Liabilities 2,275,314 1,681,334 1,811,010 Noncurrent Liabilities 3,761,480 3,529,032 416,000 Total Liabilities 6,036,794 5,210,366 2,227,010 Deferred Inflows of Resources 52,024 77,528 Net Position: Net Investment in Capital Assets 26,843,829 26,086,148 24,875,492 Unrestricted 7,723,273 5,209,728 6,705,371 Total Net Position 34,567,102 $ 31,295,876 $ 31,580,863 Net investment in capital assets is the largest portion of the Water Works' net position. At December 31, 2016, the net investment in capital assets is 77.7%, of total net position, and reflects its net investment in capital assets (e.g., land, buildings, machinery, equipment, meters, and water supply system). The Water Works uses these capital assets to provide water and services to the customers; consequently, these assets are not available for future spending. Note: 2014 information was not restated for the implementation of GASB Statement No. 68 and No. 71. 5) Page 102 of 297 WATERLOO WATER WORKS MANAGEMENT'S DISCUSSION AND ANALYSIS YEARS ENDED DECEMBER 31, 2016 AND 2015 Financial Analysis (Continued) The restricted component of net position represents resources that are subject to external restrictions on how they may be used. The unrestricted component of net position may be used to meet the Water Works' ongoing obligations to citizens and creditors. It is the Water Works' intention to use these assets for future operating purposes and capital asset acquisition and improvements. The following is a summary of the changes in net position for the years ended December 31: Table 2 STATEMENT OF ACTIVITIES 2016 2015 2014 Total Operating Revenue 9,216,787 $ 8,643,669 $ 8,288,056 Total Operating Expenses 6,674,988 6,247,543 6,722,355 Operating Income 2,541,799 2,396,126 1,565,701 Nonoperating Income 728,101 440,296 462,488 Nonoperating Expenses 12,330) 3,952) 116,096) Income Before Contributions 3,257,570 2,832,470 1,912,093 Contributions 13,656 9,023 407,873 Change in Net Position 3,271,226 2,841,493 2,319,966 Net Position- Beginning of Year 31,295,876 31,580,863 29,260,897 Prior Period Adjustment-GASB 68/71 3,126,480) Net Position -Beginning of Year, as Restated 31,295,876 28,454,383 29,260,897 Net Position-End of Year 34,567,102 $ 31,295,876 $ 31,580,863 Operating revenue is the Water Works' primary source of revenue and is generated from water sales and other services to customers. For 2016, operating revenue increased $573,118 from 2015 due primarily to a 5% increase in water rates as well as an almost 1% increase in gallons sold. For 2015, operating revenue increased $355,613 from 2014 due primarily to a 10% increase in water rates, which was partially offset by an almost 3% decrease in gallons sold. Operating expenses totaled $6,674,988 for 2016, a $427,445 increase from 2015 due primarily to increased expenses for salaries and benefits, contractual services, and commodities. Operating expenses totaled $6,247,543 for 2015, a $474,812 decrease from 2014 due primarily to the decrease in salaries and benefits expense as well as depreciation expense. Operating expenses included depreciation expense of $766,730, $661,769, and $670,812 for the years ended December 31, 2016, 2015, and 2014, respectively. 6) Page 103 of 297 WATERLOO WATER WORKS MANAGEMENT'S DISCUSSION AND ANALYSIS YEARS ENDED DECEMBER 31, 2016 AND 2015 Financial Analysis (Continued) Note: 2014 information was not restated for the implementation of GASB Statement No. 68 and No. 71. Net nonoperating revenue (expense) includes interest income and expense, losses on disposals of assets and rent from leasing space for billboards and antennas. Net nonoperating revenue (expense) increased by $279,427 between 2016 and 2015. Rent income totaled $171,242, $151,791, and 139,865 for the years ended December 31, 2016, 2015, and 2014, respectively. Capital contributions totaled $13,656, $9,023, and $407,873 for the years ended December 31, 2016, 2015 and 2014, respectively. These contributions are received as "front footage" fees as property is developed with resulting taps into the Water Works' water distribution system and from private parties installing water main infrastructure in new developments. The amount of capital contributions varies year to year depending on the nature of projects and timing of work being performed. Water services contributed to the City of Waterloo were $297,276, $350,273, and $271,896 for the years ended December 31, 2016, 2015, and 2014, respectively, are equal to the value of metered water provided to the City at no charge. Operating revenue includes an amount equal to the transfer. The Water Works also provides unmetered water to the City at no charge. However, no reasonable estimate of the value of the unmetered water can be made. Therefore, the value of unmetered water is not included in the financial statements. Capital Assets The Water Works' investment in capital assets totaled $26,910,951, $26,086,148, and $25,291,492 as of December 31, 2016, 2015, and 2014, respectively, (net of accumulated depreciation of$11,764,876, 11,062,238, and $10,400,469 as of December 31, 2016, 2015, and 2014, respectively). This investment in capital assets includes land; buildings and improvements; water supply and distribution systems; meters; machinery; and equipment. Major capital asset construction and acquisition during 2016 included the following: Continued purchase and implementation of new CIS billing software. Replacement of Water Works fleet vehicle and rubber tired backhoe. Water main extensions serving new developments within the service area. Water main replacement in association with Iowa DOT's reconstruction of U.S. Highway 63 from Newell Street to Donald Street. Engineering services in association with Iowa DOT's reconstruction of U.S. Highway 63 from Jefferson Street to Newell Street. Water main replacement of piping along Ansborough Avenue at Highway 20. Water main extension along Shaulis Road in Waterloo. Water main replacement in association with the City of Waterloo's annual Street Reconstruction projects. Upgrade and repair of well house buildings and other facilities. 7) Page 104 of 297 WATERLOO WATER WORKS MANAGEMENT'S DISCUSSION AND ANALYSIS YEARS ENDED DECEMBER 31, 2016 AND 2015 Capital Assets (Continued) Major capital asset construction and acquisition during 2015 included the following: Purchasing, data migration, testing, and initial implementation of new CIS billing software. Completed Installation of new water main and casing to restore crossing at US Hwy 20 and Ansborough Avenue. Water main replacement in associated with City's annual Street Reconstruction projects. Upgrade and repair of well house buildings and other facilities. Additional information about the Water Works' capital assets can be found in Note 4 to the financial statements. Long-Term Debt Total Water Works' long-term debt was $-0-, $-0-, and $416,000 as of December 31, 2016, 2015 and 2014, respectively. Additional information about the Water Works' long-term debt can be found in Notes 5 to the financial statements. Economic Factors and Next Year's Budget and Rates The Water Works' primary source of revenue is water sales. Water rates were not increase for the 2017 fiscal year. Budgeted revenue has been adjusted to reflect the stagnant rate. Operating expense for 2017 is expected to increase over the same expenditures in 2016 due to payroll step increases for new employees, insurance premium increases, contributions to the pension plan and other operating expense increases. Capital expenditures are expected to remain at a high level as the Water Works is planning to continue work on the US Highway 63 Jefferson Street to Franklin Street and Franklin Street to Newell Street water main replacement projects; development and integration of new Supervisory Control and Data Acquisition system; implementation of Phase 2 and Phase 3 of the CIS billing software and associated interfaces; replacement of water main along Progress Avenue from University Avenue to Cadillac Drive, along Hanna Boulevard from Maxine Avenue to Joy Drive and along Dysart Road; the Well No. 21 variable frequency drive and replacement standby power project; the University Avenue water main replacement engineering and planning; the Northeast Drive water main extension project; Phase 1 of the Automatic Meter Reading and Advanced Meter Infrastructure integration project; the Pumping Station building maintenance project; implementation of GIS mapping and software systems; and the office reconfiguration and remodel; all at an estimated cost of approximately$7,669,850. CONTACTING THE WATER WORKS' FINANCIAL MANAGEMENT This financial report is designed to provide a general overview of the Water Works' finances for all of those with an interest in the Water Works' finances. Questions concerning and of the information provided in this report or request for additional financial information should be addressed to the Waterloo Water Works, 325 Sycamore Street, Waterloo, Iowa 50703 or by phone at 319-232-6280. 8) Page 105 of 297 PAGE INTENTIONALLY LEFT BLANK. Page 106 of 297 FINANCIAL STATEMENTS Page 107 of 297 WATERLOO WATER WORKS STATEMENTS OF NET POSITION DECEMBER 31, 2016 AND 2015 2016 2015 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash and Cash Equivalents 9,975,070 $ 6,668,998 Certificates of Deposit 399,648 380,849 Accounts Receivable(Net of Allowance) 1,512,310 1,805,442 Accrued Interest 4,976 6,515 Inventories 402,543 405,354 Prepaid Expenses 119,819 104,772 Total Current Assets 12,414,366 9,371,930 OTHER ASSETS Restricted Certificates of Deposit 186,156 199,151 Repair Assessments Receivable 232,999 257,325 Total Other Assets 419,155 456,476 CAPITAL ASSETS Land 314,543 314,543 Buildings and Improvements 1,781,153 1,772,617 Water Supply System 6,654,168 6,600,068 Distribution System 24,136,212 23,578,452 Meters and Equipment 1,173,594 1,173,594 Machinery and Equipment 3,497,270 3,313,454 Office Equipment 89,054 Construction In Progress 1,029,833 395,658 Total, at Cost 38,675,827 37,148,386 Less:Accumulated Depreciation 11,764,876) 11,062,238) Total Capital Assets 26,910,951 26,086,148 Total Assets 39,744,472 35,914,554 DEFERRED OUTFLOWS OF RESOURCES Pension Related Deferred Outflows 911,448 669,216 9) Page 108 of 297 WATERLOO WATER WORKS STATEMENTS OF NET POSITION (CONTINUED) DECEMBER 31, 2016 AND 2015 2016 2015 LIABILITIES, DEFERRED INFLOWS OF RESOURCES,AND NET POSITION CURRENT LIABILITIES Accounts Payable 173,243 $266,156 Retainage Payable 51,375 38,513 Accrued Payroll and Benefits 125,787 92,455 Due to City of Waterloo: Garbage Fees 359,347 239,235 Sewer Fees 1,052,585 580,505 Storm Sewer Fees 203,615 142,996 Due to Other Governments 53,292 54,815 Current Maturities of Long-Term Liabilities 69,914 67,508 Total Current Liabilities 2,089,158 1,482,183 LIABILITIES PAYABLE FROM RESTRICTED ASSETS 186,156 199,151 LONG-TERM LIABILITIES Net Pension Liability 3,761,480 3,529,032 Total Liabilities 6,036,794 5,210,366 DEFERRED INFLOWS OF RESOURCES Pension Related Deferred Inflows 52,024 77,528 NET POSITION Net Investment in Capital Assets 26,843,829 26,086,148 Unrestricted 7,723,273 5,209,728 Total Net Position 34,567,102 $ 31,295,876 10) Page 109 of 297 WATERLOO WATER WORKS STATEMENTS OF REVENUES, EXPENSES, AND CHANGE IN NET POSITION YEARS ENDED DECEMBER 31, 2016 AND 2015 0 0 2016 2015 OPERATING REVENUES Water Sales 8,661,083 $ 8,149,853 Metered Water Provided to City of Waterloo 297,276 350,273 Fire Protection 70,436 19,776 Billing and Collection Fees 187,992 123,767 Total Operating Revenue 9,216,787 8,643,669 OPERATING EXPENSES Salaries and Benefits 3,535,114 3,264,574 Contractual Services 850,692 863,479 Commodities 1,225,176 1,107,448 Services Contributed to the City of Waterloo 297,276 350,273 Depreciation 766,730 661,769 Total Operating Expenditures 6,674,988 6,247,543 OPERATING INCOME 2,541,799 2,396,126 NONOPERATING INCOME(EXPENSE) Other Sales and Services 484,265 253,333 Interest Income 72,594 35,172 Interest Expense 3,952) Loss on Disposal of Capital Assets 12,330) Billboard and Antenna Rent 171,242 151,791 Total Nonoperating Income(Expense) 715,771 436,344 Income Before Contributions 3,257,570 2,832,470 CAPITAL CONTRIBUTIONS Capital Contributions 13,656 9,023 CHANGE IN NET POSITION 3,271,226 2,841,493 Net Position - Beginning of Year 31,295,876 28,454,383 NET POSITION -END OF YEAR 34,567,102 $ 31,295,876 0 See accompanying Notes to Basic Financial Statements. 11) Page 110 of 297 WATERLOO WATER WORKS STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2016 AND 2015 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 9,223,974 $ 8,150,078 Cash Paid to or on Behalf of Employees 3,534,664) 3,451,853) Cash Paid to Suppliers 2,235,277) 1,858,884) Net Cash Provided by Operating Activities 3,454,033 2,839,341 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash Collected on Behalf of Primary Government 13,919,705 11,497,047 Cash Collected on Behalf of Other Governments 454,876 648,177 Cash Paid to Primary Government(Less 1% Collection Fee) 13,213,033) 11,677,818) Cash Paid to Other Governments(Less Collection Fee) 417,852) 558,599) Cash Received from Other Services 391,857 117,644 Proceeds from Sale of Capital Assets 2,200 Billboard and Antenna Rent 171,242 151,791 Net Cash Provided by Noncapital Financing Activities 1,308,995 178,242 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Contributed Capital 13,656 9,023 Repayment of Long-Term Liabilities 416,000) Interest Paid on Capital Loan Notes 3,952) Acquisition of Capital Assets 1,538,941) 1,359,823) Net Cash Used by Investing Activities 1,525,285) 1,770,752) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from the Maturities of Certificates of Deposit 350,000 133,279 Purchases of Certificates of Deposit 355,804) 133,279) Interest Received 74,133 30,543 Net Cash Provided by Investing Activities 68,329 30,543 NET INCREASE IN CASH AND CASH EQUIVALENTS 3,306,072 1,277,374 Cash and Cash Equivalents-Beginning of Year 6,668,998 5,391,624 CASH AND CASH EQUIVALENTS -END OF YEAR 9,975,070 $ 6,668,998 See accompanying Notes to Basic Financial Statements. 12) Page 111 of 297 WATERLOO WATER WORKS STATEMENTS OF CASH FLOWS (CONTINUED) YEARS ENDED DECEMBER 31, 2016 AND 2015 2016 2015 RECONCILIATION OF OPERATING INCOME TO CASH PROVIDED BY OPERATING ACTIVITIES Operating Income 2,541,799 $ 2,396,126 Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation 766,730 661,769 Increase) Decrease in Assets and Deferred Outflows: Accounts Receivable and Assessment Receivable 317,458 143,418) Inventory 2,811 101,680 Prepaid Expenses 15,047) 11,716 Pension Related Deferred Outflows 242,232) 512,545) 41/Increase(Decrease) in Liabilities and Deferred Inflows: Accounts and Retainage Payable 147,173) 14,194) Accrued Payroll and Fringe 33,332 4,051) Compensated Absences 2,406 5,908 Customer Deposits 12,995) 100 Net Pension Liability 232,448 445,721 Liabilities Payable from Restricted Assets 12,841 Pension Related Deferred Inflows 25,504) 122,312) Net Cash Provided by Operating Activities 3,454,033 $ 2,839,341 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest Paid 3,952 SUPPLEMENTAL DISCLOSURE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Capital Asset Additions Included in Accounts Payable 67,122 $ 96,602 S S S S S S See accompanying Notes to Basic Financial Statements. 13) Page 112 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Operation The Waterloo Water Works (the Water Works) is a component unit of the City of Waterloo, Iowa (the City). The Water Works provides water to customers in the cities of Waterloo, Elk Run Heights, Hudson, Raymond and adjacent areas of Black Hawk County. The Water Works' rates are set by its governing board. The Water Works is governed by a three- member board of trustees. Board members are appointed by the City Council to six-year terms. The financial statements presented here are also included in the financial statements of the City. The accounting policies of the Water Works conform to accounting principles generally accepted in the United States of America. Financial Reporting Entity Component units are legally separate entities for which the Water Works (primary government) is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit include whether or not the primary government appoints the voting majority of the potential component unit's governing body, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. Based on these criteria, there are no organizations considered to be component units of the Water Works. Basis of Accounting The accrual basis of accounting is used by the Water Works. Under this method, revenues are recorded when earned and expenses are recorded when the related liability is incurred. The Water Works distinguishes operating revenues and expenses from other items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with ongoing operations. The principal operating revenue of the Water Works is charges to customers for sales of water. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Water Works' policy to use restricted resources first, and then unrestricted resources as they are needed. 14) Page 113 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus The accounting and reporting treatment applied to the capital assets and long-term liabilities are determined by its measurement focus. Water Works is accounted for on a full accrual, economic resources basis. This means that all assets, deferred outflows, liabilities, and deferred inflows (whether current or noncurrent) associated with their activity are included on their statement of net position. The Water Works' net position is reported in three parts: 1) net investment in capital assets; (2) restricted net position; and (3) unrestricted net position. Capital Assets Capital Assets are recorded at cost, less depreciation calculated using the straight-line method over the assets' estimated useful lives as follows: Estimated Tvpe Useful Lives Buildings and Improvements 10 to 99 Years Water Supply System 10 to 99 Years Distribution System 10 to 60 Years Meters and Equipment 5 to 63 Years Machinery and Equipment. 3 to 40 Years Cash and Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both: A. Readily convertible to known amounts of cash, or B. So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Water Works' policy considers cash equivalents to be those that meet the above criteria and have maturities of three months or less when purchased. Cash and cash equivalents consist of checking, savings, certificates of deposit, and cash on hand. Accounts Receivable Water sales are estimated for the period from the previous billing to year-end and are included in revenue and accounts receivable. At December 31, 2016, there is an allowance for doubtful accounts of $384,439 reflected in the financial statements and $266,777 at December 31, 2015. Accounts receivable are uncollateralized. I 15) I Page 114 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 S NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Inventories Inventory is stated at average cost. Deferred Outflows of Resources Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense) until then. Deferred outflows of resources consist of unrecognized items not yet charged to pension expense and contributions from the employer after the measurement date but before the end of the employer's reporting period. The Water Works has one type of deferred outflow of resources related to pensions. This pension related deferred outflow of resources will be recognized as expense in subsequent years. Compensated Absences In accordance with the Water Works' policy, all employees accrue vacation on their anniversary year date and not on a calendar year-end. No vacation time can be carried over after the anniversary date. Sick leave is accrued on a calendar year-end. Each employee accrues 56 hours per year. Employees are allowed to carry over 75% into the next year and the remaining 25% is paid out. The accrued vacation and sick pay balance is $69,914 and $67,508 at December 31, 2016 and 2015, respectively. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources related to pensions, pension expense, information about the fiduciary net position of the Iowa Public Employee's Retirement System (IPERS) and Waterloo Water Works Pension Plan and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the pension plans. 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. Deferred Inflows of Resources Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The Water Works has one type of deferred inflow of resources, which is related to pension plans as discussed in Note 6. S 16) Page 115 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Net Position Net position represents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources in the proprietary financial statements and is classified into three components: a) Net investment in capital assets — This component consists of capital assets net of accumulated depreciation and reduced by the amount of outstanding balance of bonds or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b) Restricted net position — Net position with constraints placed on the use either by 1) external groups such as creditors, grantors, or laws or regulations of other governments; or 2) law through constitutional provisions or enabling legislation are reflected in this component. c) Unrestricted net position — All other net position that does not meet the definition of restricted" or"net investment in capital assets." Reclassification Certain 2015 amounts have been reclassified to conform to 2016 presentation. The reclassifications did not affect the Water Works' change in net position. S NOTE 2 CASH AND INVESTMENTS The Water Works' deposits in banks at December 31, 2016 and 2015 were entirely covered by federal depository 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 insure there will be no loss of public funds. The Water Works is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured depository institutions approved by the Board of Trustees; prime eligible bankers acceptances; certain high rated commercial paper; perfected repurchase agreements; certain registered open-ended management investment companies; certain joint investment trusts; and warrants or improvement certificates of a drainage district. The Water Works had no investments meeting the disclosure requirements of Governmental Accounting Standards Board Statement No. 72. S S S 17) Page 116 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 2 CASH AND INVESTMENTS (CONTINUED) At June 30, the Water Works' cash and investments consisted of cash, certificates of deposit, and investments in external investment pools as follows: 2016 2015 Cash on Hand 1,800 $ 1,800 Certificates of Deposit 585,804 580,000 Cash and Cash Equivalents 8,444,833 5,139,554 Other Cash Equivalents-Iowa Public Agency Investment Trust 1,528,437 1,527,644 Total Cash and Deposits 10,560,874 $ 7,248,998 Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Water Works does not have a formal investment policy for credit risk. The Iowa Public Agency Investment Trust (IPAIT) is rated AAAm by Standard & Poor's S&P). Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Water Works will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At December 31, 2016 all investments and collateral were listed in the name of the Water Works. Water Works does not have a formal investment policy for custodial credit risk. Fair Value Measurements The Water Works uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Water Works follows an accounting standard that defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and requires expanded disclosures about fair value measurements. In accordance with this standard, the Water Works has categorized its investments, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation techniques as follows: Level 1 — Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in active markets accessible at the measurement date of identical financial assets and liabilities. 18) Page 117 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 2 CASH AND INVESTMENTS (CONTINUED) Fair Value Measurements (Continued) Level 2 — Financial assets and liabilities are valued based on quoted prices for similar assets, or inputs that are observable, either directly or indirectly for substantially the full term through corroboration with observable market data. Level 3 — Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset, inputs that reflect the reporting entity's own assumptions about the assumptions market participants and would use in pricing the asset. Assets measured at fair value on a recurring basis: 2015 Level 1 Level 2 Level 3 Total Securities Investments Valued at Net Asset Value(NAV) 1,527,644 1,527,644 2016 Level 1 Level 2 Level 3 Total Securities Investments Valued at Net Asset Value(NAV) 1,528,437 1,528,437 IPAIT is an external investment pool that is managed to maintain a dollar-weighted average portfolio maturity of no greater than 397 days and seeks to maintain a constant net asset value (NAV) per share of $1.00. The Pool elects to measure its investments at amortized cost in accordance with accounting statements issued by the Government Accounting Standards Board. The Water Works reports its investments in the IPAIT at the NAV per share, the fair value established by the IPAIT, and is included in one share class as follow: 2015 Net Asset Unfunded Value Commitments IPAIT Diversified Portfolio 1,527,644 $ 2016 Net Asset Unfunded Value Commitments IPAIT Diversified Portfolio 1,528,437 $ The Diversified Portfolio has no redemption requirements. 19) Page 118 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 3 RESTRICTED CERTIFICATES OF DEPOSIT Restricted certificates of deposit represent monies set aside to provide security for deposits and advances. The composition of these funds as of December 31, 2016 and 2015 was as follows: Restricted Corresponding Restricted Assets Liability Net Position 2016 Customer Deposits(Certificates of Deposit)186,156 $ 186,156 $ 2015 Customer Deposits(Certificates of Deposit)199,151 $ 199,151 $ NOTE 4 CAPITAL ASSETS A summary of capital asset activity for the year ended December 31, 2016 and 2015 is as follows: Beginning Ending Balance Retirements/Balance 1/1/2016 Additions Transfers 12/31/2016 Capital Assets, Not Being Depreciated Land 314,543 $ 314,543 Construction in Progress 395,658 1,139,343 505,168)1,029,833 Total Capital Assets, Not Being Depreciated 710,201 1,139,343 505,168)1,344,376 Capital Assets, Being Depreciated Buildings and improvements 1,772,617 8,536 1,781,153 Water Supply System 6,600,068 54,100 6,654,168 Distribution System 23,578,452 557,760 24,136,212 Meters and Equipment 1,173,594 1,173,594 Machinery and Equipment 3,313,454 351,492 78,622)3,586,324 Total Capital Assets, Being Depreciated 36,438,185 971,888 78,622) 37,331,451 Less Accumulated Depreciation Buildings and improvements 813,118) 29,317) 842,435) Water Supply System 3,292,053)196,144) 3,488,197) Distribution System 4,759,806) ' (276,071) 5,035,877) Meters and Equipment 718,817) 25,293) 744,110) Machinery and Equipment 1,478,444)239,905) 64,092 1,654,257) Total Accumulated Depreciation (11,062,238)766,730) 64,092 (11,764,876) Net Capital Assets, Being Depreciated 25,375,947 205,158 14,530) 25,566,575 Net Capital Assets 26,086,148 $ 1,344,501 $ (519,698) $ 26,910,951 20) Page 119 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 0 0 NOTE 4 CAPITAL ASSETS (CONTINUED) 0 Beginning Ending Balance Retirements/Balance 1/1/2015 Additions Transfers 12/31/2015 ID 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 System 6,594,178 5,890 6,600,068 0 Distribution System 22,876,149 702,303 23,578,452 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 Buildings and improvements 784,349) 28,769) 813,118) Water Supply System 3,077,011)215,042) 3,292,053) Distribution System 4,504,487)255,319) 4,759,806) 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) Net Capital Assets, Being Depreciated 24,085,061 1,290,886 25,375,947 Net Capital Assets 25,291,492 $ 2,684,162 $(1,889,506) $ 26,086,148 NOTE 5 LONG-TERM DEBT A summary of long-term debt activity for the year ended December 31, 2016 and 2015 is as follows: Beginning Ending Balance Balance Due Within Description 1/1/2016 Additions Retirements 12/31/2016 One Year Compensated Absences 67,508 $ 151,018 $ 148,612 $ 69,914 $ 69,914 Total Debt 67,508 $ 151,018 $ 148,612 $ 69,914 $ 69,914 Beginning Ending Balance Retirements/ Balance Due Within Description 1/1/2015 Additions Refunded 12/31/2015 One Year Water Revenue Capital Loan Note, Series 2014 $ 416,000 $ 416,000 $ Compensated Absences 61,600 120,260 114,352 67,50867,508 Total Debt 477,600 $ 120,260 $ 530,352 $ 67,508 $ 67,508 21) Page 120 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 5 LONG-TERM DEBT(CONTINUED) Debt indentures required 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. During 2015, the Water Works was in compliance with required covenants. NOTE 6 DEFINED BENEFIT PENSION PLANS 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% 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. At December 31, the following employees were covered by the WWW Plan: 2016 2015 Inactive Plan Members and Beneficiaries Currently Receiving Benefits 34 32 Inactive Plan Members Entitled to but not yet Receiving Benefits 2 4 Active Plan Members 17 17 Total Members 53 53 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 IPERS 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% 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. As of January 1, 2011, plan members were required to contribute two-thirds of the full contribution rate of 4.3% 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. 22) Page 121 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 6 DEFINED BENEFIT PENSION PLANS (CONTINUED) Waterloo Water Works Pension Plan (Continued) Net Pension Liability: The Water Works' net pension liability was measured as of December 31, 2016 and 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of those dates. The total pension liability as of December 31, 2016 and 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 Annum Long-Term Investment Rate of Return 8.00%, Compounded Annually, Net of Investment Expenses The actuarial assumptions used in the December 31, 2016 and 2015 valuations were based on the results of an actuarial experience study for the periods of January 1, 2016 through December 31, 2016 and January 1, 2015 through December 31, 2015, respectively. In addition, mortality rates were based on 2017 and 2016 IRS Combined Mortality Tables 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, 2016 and December 31, 2015 are summarized in the following tables: 2016 Long-Term Expected Asset Class Target Allocation Real Rate of Return Cash and Fixed Income 11% 2.50% Equity Large Cap 63% 5.50% Equity Mid Cap 12% 6.00% Equity Small Cap 12% 6.00% Real Estate 2% 5.00% Cash 0% 0.00% Total 100% 23) Page 122 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 6 DEFINED BENEFIT PENSION PLANS (CONTINUED) Waterloo Water Works Pension Plan (Continued) 2015 Long-Term Expected Asset Class Target Allocation Real Rate of Return 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 0% 0.00% Total 100% Discount Rate: The discount rate used to measure the total pension liability was 8.00% for the years ended December 31, 2016 and 2015. 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, 2016 were as follows: Total Plan Fiduciary Net Pension Net Pension Liability Position Liability Balance-Beginning of Year 7,927,445 $ 5,105,369 $ 2,822,076 1 Changes for the Year: Service Cost 53,886 53,886 Interest 616,847 616,847 Difference Between Expected and Actual Experience 164,103 164,103 Changes in Assumptions 13,141 13,141 Contributions-Employer 489,448 489,448) Contributions-Member 60,713 60,713) Net Investment Income 281,674 281,674) of Employee Contributions 541,494) 541,494) Balance-End of Year 8,233,928 $ 5,395,710 $ 2,838,218 24) Page 123 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 6 DEFINED BENEFIT PENSION PLANS (CONTINUED) Waterloo Water Works Pension Plan (Continued) Changes in the Water Works' net pension liability for the year ended December 31, 2015 were as follows: Total Plan Fiduciary Net Pension 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 157,690) 157,690 Benefit Payments Including Refunds of Employee Contributions 518,306) 518,306) Administrative Expense Balance-End of Year 7,927,445 $ 5,105,369 $ 2,822,076 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%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1% lower, or 1% higher than the current rate for the year ended December 31, 2016 and 2015: 1% Discount 1% Decrease Rate Increase 7.00% 8.00% 9.00% 2016 Net Pension Liability 3,496,932 $ 2,838,218 $ 2,228,297 2015 Net Pension Liability 3,543,475 $ 2,822,076 $216,852 I 25) Page 124 of 297 II WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 6 DEFINED BENEFIT PENSION PLANS (CONTINUED) Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions As of December 31, 2016 and 2015, the Water Works' recognized pension expense of 396,172 and $291,775, respectively. At December 31, 2016, the Water Works' reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences Between Expected and Actual Experience $109,402 $ 9,345 Changes in Assumptions 12,961 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 448,401 570,764 $ 9,345 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 Outflows Deferred 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: 2017 Pension 2016 Pension Year Ending December 31, Expense Amount Expense Amount 2016 110,428 2017 194,929 110,428 2018 200,075 115,573 2019 140,995 115,574 2020 25,420 Total 561,419 $452,003 26) Page 125 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 6 DEFINED BENEFIT PENSION PLANS (CONTINUED) Iowa Public Employees' Retirement System (IPERS) Plan Description: IPERS membership is mandatory for employees of the Water Works, except for those covered by another retirement system. Employees of the Water Works are provided with pensions through a cost sharing multiple employer defined benefit pension plan administered by Iowa Public Employees' Retirement System (IPERS). IPERS issues a stand-alone financial report which is available to the public by mail at 7401 Register Drive P.O. Box 9117, Des Moines, Iowa 60306-9117 or at www.ipers.org. IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder. Chapter 97B 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: A regular member may retire at normal retirement age and receive monthly benefits without an early-retirement reduction. Normal retirement age is age 65, any time after reaching age 62 with 20 or more years of covered employment, or when the member's years of service plus the members age at the last birthday equals or exceeds 88, whichever comes first. These qualifications must be met on the member's first month of entitlement to benefits. Members cannot begin receiving retirement before age 55. The formula used to calculate a Regular member's monthly IPERS benefit includes: A multiplier(based on years of service) The member's highest five-year average salary, except members with service before June 30, 2012, the highest three-year average salary as of that date will be used if it is greater than the highest five-year salary. If a member retires before normal retirement age, the member's monthly retirement benefit will be permanently reduced by an early-retirement reduction. The early-retirement reduction is calculated differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the reduction is 0.25% for each month that the member receives benefits before the member's earliest normal retirement age. For service earned starting July 1, 2012, the reduction is 0.50% for each month the member receives benefits before age 65. Pension Benefits (continued): Generally once a member selects a benefit option, a monthly benefit is calculated and remains the same for the rest of the member's lifetime. However, to combat the effects of inflation, retirees who began receiving benefits prior to July 1990 receive a guaranteed dividend with their regular November benefit payments. Disability and Death Benefits: A vested member who is awarded federal Social Security disability or Railroad Retirement disability benefits is eligible to claim IPERS benefits regardless of age. Disability benefits are not reduced for early retirement. If a member dies before retirement, the member's beneficiary will receive a lifetime annuity or a lump-sum payment equal to the present actuarial value of the member's accrued benefit or calculated with a set formula, whichever is greater. When a member dies after retirement, death benefits depend on the benefit option the member selected at retirement. 27) Page 126 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 6 DEFINED BENEFIT PENSION PLANS (CONTINUED) Iowa Public Employees Retirement System (IPERS) (Continued) Contributions: Contribution rates are established by (PERS following the annual actuarial valuation, which applies IPERS' Contribution Rate Funding Policy and Actuarial Amortization Method. Statute limits the amount rates can increase or decrease each year to 1 percentage point. (PERS Contribution Rate Funding Policy requires the actuarial contribution rate be determined using the "entry age normal" actuarial cost method and the actuarial assumptions and the methods approved by the (PERS Investment Board. The actuarial contribution rate covers normal cost plus the unfunded actuarial liability payment based on a 30-year amortization period. The payment to amortize the unfunded actuarial liability is determined as a level percentage of payroll based on the Actuarial Amortization Method adopted by the Investment Board. In 2016 and 2015, pursuant to the required rate, Regular members contributed 5.95% of covered payroll and the Water Works contributed 8.93% of covered payroll for a total rate of 14.88%. The Water Works' Contributions to IPERS for the years ended December 31, 2016 and 2015 were $96,378 and $90,911, respectively. At December 31, 2016 and 2015, the Water Works' liability for its proportionate share of the net pension liability totaled $923,262 and $706,956, respectively. The net pension liability was measured as of June 30, 2016, 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 IPERS participating employers. At June 30, 2016, the Water Works' collective proportion was 0.014805%, which was an increase of 0.000585% from its proportion measured as of June 30, 2015 of 0.014220%. For the years ended December 31, 2016 and 2015, the Water Works recognized pension expense of $145,873 and $90,305, respectively. At December 31, 2016, the Water Works reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences Between Expected and Actual Experience 8,159 $ 11,019 Changes in Assumptions 14,086 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 163,196 31,660 Changes in Proportion and Differences Between Water Works Contributions and Proportionate Share of Contributions 107,243 Differences Between Actual and Proportionate Share of Employee Contributions Water Works Contributions Subsequent to the Measurement Date 48,000 340,684 $ 42,679 28) Page 127 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 6 DEFINED BENEFIT PENSION PLANS (CONTINUED) Iowa Public Employees Retirement System (IPERS) (Continued) 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 Outflows Deferred Inflows of Resources of Resources Differences Between Expected and Actual Experience 10,681 $ Changes in Assumptions 19,464 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 58,837 Changes in Proportion and Differences Between Water Works Contributions and Proportionate Share of Contributions 113,377 Differences Between Actual and Proportionate Share of Employee Contributions Water Works Contributions Subsequent to the Measurement Date 55,000 198,522 $ 58,837 il • For December 31, 2016 and 2015, $48,000 and $55,000, respectively, was 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, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: 2017 Pension 2016 Pension Year Ending December 31, Expense Amount Expense Amount 2016 11,037 2017 54,161 11,037 2018 54,161 11,037 2019 92,999 47,839 2020 47,682 3,735 2021 1,002 Total 250,005 $ 84,685 There were no nonemployer contributing entities at (PERS. 29) Page 128 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 6 DEFINED BENEFIT PENSION PLANS (CONTINUED) Iowa Public Employees Retirement System (IPERS) (Continued) Actuarial Assumptions: The total pension liability in the June 30, 2016 and 2015 actuarial valuations was determined using the following actuarial assumptions applied to all periods included in the measurement, as follows: Rate of Inflation 3.00% Per Annum Effective June 30, 2014) Rates of Salary Increases 4.00%-17.00% Per Annum Effective June 30, 2010)Depending on Years of Service Long-Term Investment Rate of Return 7.50%, Compounded Annually, Net of Effective June 30, 1996)Investment Expenses. Wage Growth 4.00% per annum based on 3.00% inflation Effective June 30, 1990)and 1.00% real wage inflation The actuarial assumptions used in the June 30, 2016 and 2015 valuations were based on the results of actuarial experience studies with dates corresponding to those listed above. 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. 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 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 for December 31, 2016 and 2015 are summarized in the following tables: 2016 Long-Term Expected Real Asset Class Asset Allocation Rate of Return Core Plus Fixed Income 28% 2.04% Domestic Equity 24% 6.29% International Equity 16% 6.75% Private Equity/Debt 11% 11.32% Real Estate 8% 3.48% Credit Opportunities 5% 3.63% US TIPS 5% 1.91% Other Real Assets 2% 6.24% Cash 1% 0.71)% Total 100% 30) Page 129 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 6 DEFINED BENEFIT PENSION PLANS (CONTINUED) Iowa Public Employees Retirement System (IPERS) (Continued) 2015 Long-Term Expected Real Asset Class Asset Allocation Rate of Return US Equity 23% 6.31% III Non US Equity 15% 6.76% Private Equity 13% 11.34% Real Estate 8% 3.52% Core Plus Opportunities 28% 2.06% Credit Opportunities 5% 3.67% US TIPS 5% 1.92% Other Real Assets 2% 6.27% Cash 1% 0.69)% Total 100% Discount Rate: The discount rate used to measure the total pension liability was 7.5% for the years ended December 31, 2016 and 2015. 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%, 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% lower (6.5%) or 1% higher(8.5%) than the current rate. 1% Discount 1% Decrease Rate Increase 6.50% 7.50% 8.50% Water Work's 2016 Proportionate Share of the Net Pension Liability $ 1,493,708 $923,262 $441,792 Water Work's 2015 Proportionate Share of the Net Pension Liability $ 1,237,753 $706,956 $258,925 IPERS' Fiduciary Net Position: Detailed information about the pension plan's fiduciary net position is available in the separately issued IPERS financial report which is available on IPERS' website www.ipers.org. S 31) 0 Page 130 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 II • I . NOTE 6 DEFINED BENEFIT PENSION PLANS (CONTINUED) Iowa Public Employees Retirement System (IPERS) (Continued) Payables to IPERS: At December 31, 2016 and 2015, the Water Works reported payables to the defined benefit pension plan of $7,633 and $7,043, respectively, for legally required employee contributions which had been withheld from employee wages but not yet remitted to (PERS. The total pension expense is as follows for the years ended December 31, 2016 and 2015: 111 Pension Plan 2016 2015 PERS Pension Expense 145,873 $ 90,305 Waterloo Water Works Pension Expense 396,172 291,775 542,045 $382,080 NOTE 7 PROPERTY UNDER LEASE AGREEMENTS The Water Works is the lessor of space on towers under various operating lease agreements. The lease agreements expire at various times through 2018. Current monthly rent income is approximately $13,000 per month. At December 31, 2016 future minimum lease payments receivable under the noncancelable operating leases are as follows: Year Ending December 31, Amount 2017 114,770 2018 109,067 2019 87,395 2020 73,707 Total 384,939 NOTE 8 RELATED PARTY TRANSACTIONS The Water Works provides customer file maintenance, meter reading, billing and collecting services for the City of Waterloo's (City) Sanitation (Garbage) and Sanitary Sewer Enterprise Funds and keeps 1% of cash collected as a service fee. During 2016 and 2015, the Water Works recorded $140,087 and $118,504, respectively, as City service fees and forwarded approximately $13,900,000 and $11,500,000 during 2016 and 2015, respectively, to the City. As of December 31, 2016 and 2015, the Water Works' payables to the City were 1,615,547 and $962,736, for garbage, sewer, and storm water collections, respectively. The Water Works pays office expenses (data processing charges, postage, and other expenses of the billing cycle) and passes approximately one-half of those costs on to the City. During 2016 and 2015, the Water Works received approximately $92,000 and $72,000, respectively, from the City which reduced office expenses. 32) Page 131 of 297 WATERLOO WATER WORKS NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 NOTE 8 RELATED PARTY TRANSACTIONS (CONTINUED) The Water Works also provides metered and unmetered water to the City at no charge. Metered water furnished to the City is valued at equivalent sales rates and is included in the financial statements as water sales revenue and water services contributed to the City of Waterloo. During the years ended December 31, 2016 and 2015, the Water Works provided metered water to the City valued at approximately$297,000 and $350,000, respectively. NOTE 9 RISK MANAGEMENT The Water Works is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; business interruption; error or omissions; employee's injuries and illnesses; or natural disasters. Commercial insurance coverage is purchased for claims arising from such matters. Settled claims have not exceeded this commercial coverage in any of the three preceding years. NOTE 10 COMMITMENTS The Water Works began working on water main extension projects and other various projects. As of December 31, 2016, the Water Works expects the remaining costs of the existing contracts to be $264,646. Through a Cooperative Agreement with the Iowa Department of Transportation, the Water Works will be responsible for approximately $1.06 million of the costs relating to reconstruction of roadways, which includes water main infrastructure. S S S S S S S S S S 33) S Page 132 of 297 REQUIRED SUPPLEMENTARY INFORMATION Page 133 of 297 WATERLOO WATER WORKS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS FOR WATERLOO WATER WORKS PENSION PLAN LAST TEN FISCAL YEARS 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Actuarially Determined Contribution $ 489,448 $ 475,911 $ 481,861 $ 480,199 $ 423,689 $ 383,404 $ 357,677 $ 379,444 $ 281,460 $ 219,249 Contributions in Relation to Actuarially Determined contribution 550,161 540,043 570,419 538,658 473,114 445,212 396,550 379,444 505,000 205,059 Contribution Deficiency(Excess) 60,713)64,132)88,558)58,459)49,425)61,808)38,873) 223,540) 14,190 Covered Payroll 1,004,723 $ 1,045,603 $ 1,064,651 $ 1,100,185 $ 1,105,893 $ 1,248,200 $ 1,306,209 $ 1,374,782 $ 1,356,797 $ 1,263,173 Contributions as a Percentage of Covered Payroll 54.8% 51.6% 53.6% 49.0% 42.8% 35.7% 30.4% 27.6% 37.2% 16.2% 34) Page 134 of 297 II' • WATERLOO WATER WORKS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR WATERLOO WATER WORKS PENSION PLAN 2016 2015 Total Pension Liability Service Cost 53,886 $ 53,008 Interest 616,847 607,558 Difference Between Expected and Actual Experience 164,103 28,037) Changes in Assumptions 13,141 12,600 Benefit Payments Including Refunds 541,494) 518,306) Change in Total Pension Liability 306,483 126,823 Total Pension Liability-Beginning of Year 7,927,445 7,800,622 Total Pension Liability-End of Year 8,233,928 7,927,445 Plan Fiduciary Net Position Contributions-Employer 489,448 481,000 Contributions-Member 60,713 59,043 Contributions-Nonemployer Contributing Member Net Investment Income 281,674 157,690) Benefit Payments Including Refunds 541,494) 518,306) Administrative Expense Change in Plan Fiduciary Net Position 290,341 135,953) Plan Fiduciary Net Position-Beginning of Year 5,105,369 5,241,322 Plan Fiduciary Net Position-End of Year 5,395,710 5,105,369 Net Pension Liability-End of Year 2,838,218 $ 2,822,076 Plan Fiduciary Net Position as a%of Total 65.5% 64.4% Pension Liability Covered Payroll 1,004,723 $ 1,045,603 Net Pension Liability as a%of Covered Payroll 282.5% 269.9% Additional years will be added going forward as information becomes available. 35) Page 135 of 297 I • WATERLOO WATER WORKS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION FOR WATERLOO WATER WORKS PENSION PLAN FOR THE YEAR ENDED DECEMBER 31, 2016 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 Entry Age Cost Method Amortization Method Level Dollar Remaining Amortization Period 20 Years Asset Valuation Method Market Value of Assets Inflation 2.50% Annual Pay Increases 3.00% Investment Rate of Return 8.00% Retirement Age 100%at age 62 Mortality Rates 2017 IRS Combined Mortality 36) Page 136 of 297 WATERLOO WATER WORKS REQUIRED SUPPLEMENTARY INFORMATION IPERS SCHEDULE OF THE WATER WORKS' PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Measurement Date June 30, 2016 2015 2014 Water Work's Proportion of the Net Pension Liability: 0.014805% 0.014220% 0.012797% Water Work's Total Proportionate Share of the Net Pension Liability 923,262 $ 706,956 $ 524,011 Water Work's Covered-Employee Payroll 1,018,040 $ 885,398 $ 791,254 Water Work's Proportionate Share of the Net Pension Liability as a Percentage of its Covered-Employee Payroll 91% 80% 66% IPERS' Net Position as a Percentage of the Total Pension Liability 85.19% 87.61% 87.61% Additional years will be added going forward as information becomes available. 37) Page 137 of 297 WATERLOO WATER WORKS REQUIRED SUPPLEMENTARY INFORMATION PERS SCHEDULE OF WATER WORKS CONTRIBUTIONS 2016 2015 2014 2013 2012 2011 2010 Statutorily Required Contribution 96,378 $ 90,911 $ 79,066 $ 70,659 $ 56,189 $ 43,676 $ 35,136 Contributions in Relation to the Statutorily Required Contribution 96,378) (90,911) (79,066) (70,659) (56,189) (43,676) (35,136) Contribution Deficiency(Excess) Water Works'Covered-Employee Payroll 1,079,261 $ 1,018,040 $ 885,398 $ 791,254 $ 648,085 $ 541,214 $ 505,554 Contributions as a Percentage of Covered-Employee Payroll 8.93% 8.93% 8.93% 8.93% 8.67% 8.07% 6.95% Additional years will be added going forward as information becomes available. 38) Page 138 of 297 SUPPLEMENTARY INFORMATION Page 139 of 297 S S S S PAGE INTENTIONALLY LEFT BLANK. S Page 140 of 297 WATERLOO WATER WORKS SUPPLEMENTARY INFORMATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN NET POSITION BUDGET AND ACTUAL (CASH BASIS) YEAR ENDED DECEMBER 31, 2016 Variance with 2016 Final Budget Original Final Actual Over Budget Budget Cash Basis Under) OPERATING REVENUES Water Sales 8,920,000 $ 8,920,000 $ 9,076,072 $156,072 Fire Protection 98,000 98,000 96,188 1,812) Total Operating Revenue 9,018,000 9,018,000 9,172,260 154,260 OPERATING EXPENSES Salaries and Benefits 3,555,040 3,555,040 3,555,947 907 Contractual Services 1,004,600 1,004,600 979,392 25,208) Commodities 7,126,450 7,126,450 3,469,065 3,657,385) Total Operating Expenditures 11,686,090 11,686,090 8,004,404 3,681,686) OPERATING INCOME(LOSS) 2,668,090) 2,668,090) 1,167,856 3,835,946 NONOPERATING INCOME(LOSS) Other Sales and Services 430,000 430,000 564,758 134,758 Interest Income 22,000 22,000 34,111 12,111 Billboard and Antenna Rent 140,000 140,000 164,207 24,207 Other Expense 50) 50) Total Nonoperating Income(Loss) 592,000 592,000 763,026 171,026 Income(Loss)Before Contributions and Transfers 2,076,090) 2,076,090) 1,930,882 4,006,972 CAPITAL CONTRIBUTIONS Capital Contributions 8,000 8,000 13,656 5,656 CHANGE IN FUND BALANCE 2,068,090) 2,068,090) 1,944,538 4,012,628 Fund Balance-Beginning of Year 5,829,367 5,829,367 5,829,367 FUND BALANCE-END OF YEAR 3,761,277 $ 3,761,277 $ 7,773,905 $ 4,012,628 39) Page 141 of 297 WATERLOO WATER WORKS NOTE TO SUPPLEMENTARY INFORMATION DECEMBER 31, 2016 0 NOTE 1 BUDGETARY INFORMATION In accordance with the Code of Iowa, the Water Works annually adopts a budget on the cash basis following required public notice and hearing. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Encumbrances are not recognized on the cash basis budget and appropriations lapse at year-end. 0 0 0 0 0 40) 0 Page 142 of 297 OTHER REPORTS SECTION Page 143 of 297 44: PAGE INTENTIONALLY LEFT BLANK. Page 144 of 297 iir Airlh CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT AUDITORS' 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 Board of Trustees Waterloo Water Works Waterloo, Iowa III 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 Waterloo Water Works Water Works), a component unit of the City of Waterloo, Iowa as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise Waterloo Water Works' basic financial statements and have issued our report thereon dated September 8, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Waterloo Water Works' internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Water Works' internal control. Accordingly, we do not express an opinion on the effectiveness of the Water Works' 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 Water Works' 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. 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. We did identify certain deficiencies in internal control, described as items 2016-001 through 2016-003 in the accompanying schedule of findings and responses that we consider to be material weaknesses. A member of Nexia 41) International Page 145 of 297 Board of Trustees Waterloo Water Works Compliance and Other Matters As part of obtaining reasonable assurance about whether Waterloo Water Works' 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. Comments involving statutory and other legal matters about the Water Works' operations for the year ended December 31, 2016 are based exclusively on knowledge obtained from procedures performed during our audit of the financial statements of the Water Works. 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 interpretations of those statutes. Responses to Findings Waterloo Water Works' responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. Waterloo Water Works' responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the responses. 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 Water Works' internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Water Works' internal control and compliance. Accordingly, this communication is not suitable for any other purpose. a,c_LLQ CliftonLarsonAllen LLP Cedar Rapids, Iowa September 8, 2017 42) Page 146 of 297 WATERLOO WATER WORKS SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED DECEMBER 31, 2016 PART I: SUMMARY OF AUDITORS' RESULTS a) An unmodified opinion was issued on the financial statements. b) Material weaknesses in internal control over financial reporting were disclosed by the audit of the financial statements. c) No instances of noncompliance material to the basic financial statements of Waterloo Water Works were disclosed during the audit. 43) Page 147 of 297 WATERLOO WATER WORKS SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED DECEMBER 31, 2016 I PART II: FINDINGS RELATED TO THE BASIC FINANCIAL STATEMENTS INTERNAL CONTROL DEFICIENCIES: FINDING 2016-001 ANNUAL FINANCIAL REPORTING UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) Condition: Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with accounting principles generally accepted in the United States of America. Criteria: The Water Works does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and related footnote disclosures are complete and presented in accordance with accounting principles generally accepted in the United States of America. Context: Management has informed us that they do not have an internal control policy in place over the annual financial reporting and that they do not have the necessary staff capacity to prepare the annual financial statements including footnote disclosures. Effect: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the Water Works' internal controls. Cause: The Water Works relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Recommendation: Management should continue to evaluate their internal staff capacity to determine if an internal control policy over the annual financial reporting is beneficial. CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Findings There is no disagreement with the audit finding. Actions Planned in Response to Finding: The Water Works will continue to engage the audit firm to prepare the annual financial statements. However, the general manager and the office manager will review a draft of the statements and related note disclosures. Official Responsible for Ensuring CAP: Dennis Clark, General Manager is the official responsible for ensuring corrective action of the deficiency. Planned Completion Date for CAP: December 31, 2017 Plan to Monitor Completion of CAP: The board of trustees will be monitoring this corrective action plan. I 44) I Page 148 of 297 WATERLOO WATER WORKS SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED DECEMBER 31, 2016 PART II: FINDINGS RELATED TO THE BASIC FINANCIAL STATEMENTS (CONTINUED) FINDING 2016-002 MATERIAL AUDIT ADJUSTMENTS Condition: The audit firm identified, and Water Works posted to its general ledger accounts, certain financial statement misstatements. Criteria: Water Works should have controls in place to prevent, or detect and correct, a material misstatement in the financial statements in a timely manner. Context: Water Works has reviewed and approved all proposed audit adjustments and posted them to the general ledger. Effect: The potential exists that a material misstatement could be present in the financial statements and not be prevented, or detected and corrected, by the Water Works' internal controls. Cause:The Water Works' controls were not adequate to ensure that all accounts were adjusted to their appropriate year-end balances in accordance with accounting principles generally accepted in the United States of America. Recommendation:We recommend that the Water Works continue to provide training to accounting staff and continue to evaluate its internal control processes to determine if additional internal control procedures should be implemented to ensure that accounts are adjusted to their appropriate year-end balances in accordance with accounting principles generally accepted in the United States of America. CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: Water Works will continue to provide training for staff in the accounting department. Official Responsible for Ensuring CAP: Dennis Clark, General Manager is the official responsible for ensuring corrective action of the deficiency. Planned Completion Date for CAP: December 31, 2017 Plan to Monitor Completion of CAP: The board of trustees will be monitoring this corrective action plan. 45) Page 149 of 297 WATERLOO WATER WORKS SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED DECEMBER 31, 2016 PART II: FINDINGS RELATED TO THE BASIC FINANCIAL STATEMENTS (CONTINUED) FINDING 2016-003 LACK OF REVIEW AND APPROVAL OF BANK RECONCILIATIONS Condition: There was no review or approval documentation on the monthly bank reconciliations. Criteria: The Water Works should have controls in place to prevent or detect a material misstatement in the financial statements in a timely manner. Context: The Water Works did not have adequate internal controls over their bank reconciliation. Effect: The potential exists that a material misstatement could occur in the financial statements and not be prevented or detected by the Water Works' internal controls. Cause: The Water Works does not have a review and approval process over its monthly bank reconciliations. Recommendation: The Water Works should have procedures in place for the review and authorization of monthly bank reconciliations. CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Findings There is no disagreement with the audit finding. Actions Planned in Response to Finding: The Water Works will start to have the monthly bank reconciliations reviewed and approved by an independent reviewer. Official Responsible for Ensuring CAP: Dennis Clark, General Manager is the official responsible for ensuring corrective action of the deficiency. Planned Completion Date for CAP: December 31, 2017 Plan to Monitor Completion of CAP: The board of trustees will be monitoring this corrective action plan. 46) Page 150 of 297 WATERLOO WATER WORKS SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED DECEMBER 31, 2016 PART III: Other Findings Related to Required Statutory Reporting: III-A-16 Certified Budget — No disbursements during the year ended December 31, 2016 exceeded the amended certified budget amounts. III-B-16 Questionable Disbursements — We noted no disbursements that fail to meet the requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979. III-C-16 Travel Expense — No disbursements of the Water Works money for travel expenses of spouses of Water Works officials or employees were noted. III-D-16 Business Transactions — No transactions between the Water Works and Water Works' officials or employees were noted. III-E-16 Bond Coverage — Surety bond coverage of Water Works officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to insure that the coverage is adequate for current operations. III-F-16 Revenue Notes — As of December 31, 2016, the Water Works was in compliance with funding and payment provisions of the revenue note resolutions. III-J-16 Notice of Public Hearing for Public Improvements — The Water Works has published a notice of public hearing for all public improvement projects, during 2016, as required by Chapters 26.12 and 362.3 and the Code of Iowa. III-G-16 Board Minutes — No transactions were found that we believe should have been approved in the board minutes but were not. III-H-16 Deposits and Investments— No instances of noncompliance were noted with the deposit and investment provisions of Chapter 12B and 12C of the Code of Iowa and the Water Works' investment policy. III-1-16 Financial Condition — The Water Works did not have a deficit balance at December 31, 2016. I 47) r1 Page 151 of 297 C ITY OF WATER LOO Council Communication Bond s City Council Meeting: 11/6/2017 Prepared: R EV I EWER S : D epartment R eviewer Action D ate E ngineering H igby, Nancy Approved 11/1/2017 - 11:47 AM ATTA C H M EN TS : Description Type B onds for council approval 11.6.17 B ackup M aterial S UB J E C T:Bond s Page 152 of 297 BONDS FOR COUNCIL APPROVAL November 6, 2017 RIGHT OF WAY CONSTRUCTION BOND AMOUNT $15,000.00_ __ 7900460919 BEARD’S PLUMBING, EXCAVATION & SEPTIC, LLC REINBECK, IA 41277167 CONCRETE SOLUTIONS, INC. ONALASKA, WI RADISLAV RAJSIC AND EMIRA RAKOVIC WATERLOO, IA Page 153 of 297 C ITY OF WATER LOO Council Communication Amendment to the C ity of Waterlo o Zoning O rdinanc e No. 5079 to update multip le s ec tions regard ing regulations fo r R ec yc ling, Junk o r S alvage Yard s and other mis cellaneo us up d ates . City Council Meeting: 11/6/2017 Prepared: 11/1/2017 ATTA C H M EN TS : Description Type Ordiance Amendment C over Memo S UB J E C T: Motio n to rec eive and file proof o f pub lic ation of notice o f pub lic hearing. HO LD HEAR ING - No comments o n file. Motio n to c lo s e hearing and rec eive and file o ral and written comments and recommendatio n o f approval of P lanning, P rogramming and Zoning C o mmis s ion. Motio n to rec eive, file, c o nsider and p as s fo r the firs t time an O rdinanc e amending O rd inance No . 5079, as amended, C ity o f Waterloo Zo ning O rdinanc e, by amend ing S ec tion 10-3-1 Definition of Impound Yard and R ecycling, Junk o r S alvage Yards, and S ec tio n 10-27-1(H)(8) S pec ial P ermit R egulatio ns fo r R ec yc ling, Junk and S alvage Yards. Motio n to s us p end the rules . Motio n to c o ns ider and p as s for the sec ond and third times and ad o p t o rd inance. S ub mitted by:S ubmitted By: Aric S c hroeder, C ity P lanner R ec o mmended Ac tio n:Ap p ro val of the ordinanc e. S ummary S tatement: S taff is pro p o s ing multiple changes to the C ity o f Waterloo Zo ning O rdinanc e No . 5079 regard ing R ec yc ling, Junk or S alvage Yard s . T he amendment wo uld change add a definition o f Imp o und Yard s the and make changes to how R ec yc ling, Junk and S alvage Yards are regulated , it als o updates the wo rd ing and requirements in the S pec ial P ermit sec tion. T his is a summary of the major changes but d o es not c o ver all c hanges. A c omplete copy of the p ro p o s ed c hanges, sho wing s trike thro ugh o f wo rd ing prop o s ed to b e remo ved and und erlined fo r wo rd ing p ro p o s ed to be ad d ed is als o attached . T he P lanning, P rogramming and Zo ning C o mmis s io n held a hearing o n O c to b er 3rd , 2017 and unanimous ly recommend ed approval o f the propos ed amend ment. T he proposed c hanges are based o n the I-C are p ro gram that is a vo luntary c ertific ation p ro gram created by the Iowa Auto mo tive R ec yclers. At the meeting the only p ers o n to s p eak was S ue S chauls Exec utive Direc tor o f the Iowa Automotive R ecyclers and autho r of the I-C AR E p ro gram who spoke in favor o f the changes with some mino r changes that were inc luded b y the C ommis s io n in their rec o mmendation and have b een inc o rp o rated in the propos ed ordinanc e attac hed. Page 154 of 297 Exp enditure R equired :none S ource o f F und s :n/a P olic y Issue:Zo ning O rd inance Background I nformatio n: In S eptember, 2015 the Waterlo o C ity C ounc il vo ted to p as s a mo ratorium o n the establis hment of any new S alvage Yards within the C ity of Waterloo p ending the ad o p tion of changes to the Zoning O rd inance that covers R ecycling, Junk and S alvage Yard s . T he P lanning and Zoning Department has worked fo r the las t year o n d eveloping an ordinanc e that wo uld enc o urage mo re ec o lo gic ally friendly bus ines s es and encourage the follo wing o f the Iowa Automotive R ecylers I-C are p ro gram. Bo th the F ire and P o lic e Dep artments were no tified o f the p ro p o s ed c hanges to ins ure that the new regulations d id no t conflict with any o f their c o d es . Legal Desc riptio ns :n/a Page 155 of 297 Amendment to the City of Waterloo Zoning Ordinance Ordinance No. ____ Amending Ordinance No. 5079 Planning and Zoning Commission Hearing: _______________ City Council Approval: _______________ Changes and Updates to the City of Waterloo Zoning Ordinance, including: -Section 10-3-1 Update to include definition of Impound Yard and update Recycling, Junk or Sal- vage yards. - Section 10-27-1 (H)(8) Update the regulations for Recycling, Junk or Salvage Yards Page 156 of 297 CHAPTER 3 DEFINITIONS 10-3-1 DEFINITIONS. 13 3. Individually listed on the State In- ventory of Historic Places; 4. Individually listed on the local in- ventory of historic places. Home Occupation: A home occupation is an accessory use of a dwelling unit, conduct- ed entirely within the dwelling unit, carried on by one or more persons, all of whom r e- side within the dwelling unit and where no persons living outside the home are e m- ployed other than resident and domestic help. The use is clearly incidental and se c- ondary to the use of the dwelling for res i- dence purposes and does not change the character thereof or adversely affect the uses permitted in the residential district of which it is a part. There shall be no outside storage of any kind; and any indoor storage, con- struction, alterations, or electrical or me chani- cal equipment used shall not change the fire rating of the structure of the fire district in which the structure is located. The use may increase vehicular traffic flow and parking by no more than one additional vehicle at a time. It shall not cause an increase in the use of one or more utilities (water, sewer, electricity, te l- ephone, or garbage) so that the combined t o- tal use of dwelling and home occupation purposes of the one or more utilities exceeds the average for residences in the neighbo r- hood. When a use is a home occupation, it means that the owner, lessee, or other pe r- sons who have a legal right to the use of the dwelling unit also have the vested right to conduct the home occupation without secur- ing special permission to do so. Ho wever, such person shall be subject to all conditions, which are applied in this Ordinance general- ly, such as off-street parking, and to all other permits required under the City code, such as Building Permits and Business Licenses. Hotel: A building containing twenty (20) or more individual sleeping rooms or suites having each a private bathroom attached thereto for the purpose of providing ove r- night lodging facilities to the general public for compensation with or without meals ex- cluding accommodation for employees and in which ingress and egress to and from all rooms is made through an inside office or lobby supervised by a person in charge at all hours. Where a hotel is permitted as principal use, all uses customarily and historically an accessory thereto for the comfort, accommo- dation and entertainment of the patron, in- cluding the service of alcoholic beverages shall be permitted. [Ordinance 3050, 11/1/79] Impound Lot: See Recycling, Junk or Sal- vage Yard. Junk Vehicle, Salvage Vehicle: A motor vehicle or other vehicle, or portion thereof not in running condition or not licensed for the current year as provided by law. No junk ve- hicle shall be kept, stored, or otherwise loca t- ed anywhere except in an enclosed building or in an approved and licensed recycling, junk or salvage yard, except as provided in City Code Section 4-4-7. [Ordinance 5288, 06/15/15] Junk Yard: See Recycling, Junk or Salvage Yard Juvenile Center: See Group Home (Super- vised or Unsupervised) [Ordinance 4554, 6/3/02] Juvenile Detention Center: See Halfway (Rehabilitation) House [Ordinance 4554, 6/3/02] Kennel: Any building or lot on which five (5) or more dogs or five (5) or more cats six (6) months old or older are housed, bred, boarded, trained, groomed or sold. This would allow for up to 4 dogs and up to 4 cats in a residential setting. Kennel, Boarding: A place or establish- ment other than a pound or animal shelter where dogs or cats not owned by the proprie- tor are sheltered, fed and watered in return for a consideration. Lot: For the purposes of this Ordinance, a lot is a parcel of land of at least sufficient size to meet minimum zoning requirements for use, coverage and area to provide such yards Page 157 of 297 CHAPTER 3 DEFINITIONS 10-3-1 DEFINITIONS. 17 Porch, Unenclosed: A roofed projection which has no more than sixty (60) percent of each outside wall area enclosed by a building or siding material other than meshed screens. If said unenclosed porch extends over a r e- quired front or rear setback as provided her e- in then the outside wall shall be a non-solid wall utilizing a spindle or board design with openings between boards to provide that no more than sixty (60) percent of the wall area is enclosed, or a solid wall when extending not more than forty-two (42) inches above the floor of the porch. Principal Permitted Use: The main use of land or structures, as distinguished from a secondary or accessory use, or Special Permit use. Protected Uses: Protected uses include a building in which a majority of floor space is used for residential purposes; a property lo- cated within a residentially zoned district; a day care center where such day care center is a principal use; a preschool; an elementary, middle or high school (public, private or p a- rochial); a house of worship; a mission; a pub- lic library; a museum or cultural arts center or facility; a public park; a publicly owned or operated recreation center or athletic facility; a privately operated recreational use; a civ- ic/convention center; a community residen- tial facility; a hospital; a dental, med ical or mental health facility; a building or office op- erated by any governmental entity. However, this definition shall not apply if the protected use is a legal non-conforming use. Whether a given use is a protected use as defined herein shall be determined by the city planner in his reasonable discretion. Public Utility: Public or quasi-public dis- tributing or operating equipment for related services for telephone, cable television, elec- tricity, gas, sewer and water, and other essen- tial commodities or services such as transpo r- tation or communication. This includes pri- vately owned structures and equipment when used to provide an essential commod i- ty or service to the public. Rear Lot Line: Ordinarily that line of a lot which is opposite and farthest from the front lot line. In triangular or other odd-shaped lots the rear lot lines shall be determined by the City Planner or designee. Recreational Vehicle: [Ordinance 4125, 9/11/95] A vehicle which is: 1. Built on a single chassis; 2. 400 square feet or less when measured at the largest horizontal projection (this provision is for floodplain management purposes only); [Ordinance 5049, 6/20/11] 3. Designed to be self-propelled or permanently towable by a light duty truck; and 4. Designed primarily not for use as a permanent dwelling but as tem- porary living quarters for recrea- tional, camping, travel or seasonal use. Recycling, Junk or Salvage Yard: Any place where materials that would otherwise be considered waste, are collected, separated, or processed to be used as raw materials. M a- terials would include, but not be limited to: scrap iron or other metals, motor vehicles not in running condition and not being actively restored to running condition, parts of vehi- cles, plastic bottles or containers, rags, paper cardboard, glass and tires. [Ordinance 3864, 6/3/92] This would also include any area where waste, discarded, or salvaged mater i- als are bought, sold, exchanged, baled or packed, disassembled, kept, stored or han- dled, including house wrecking yards, used lumber yards and places or yards for storage of salvaged house wrecking and structural steel materials and equipment, but not in- cluding areas where such uses are conducted entirely within a completely enclosed build- ing, and not including the processing of used, discarded or salvaged materials as part of manufacturing operations, and not including Page 158 of 297 CHAPTER 3 DEFINITIONS 10-3-1 DEFINITIONS. 18 contractors storage yards, and not including rubble fill deposited on property in compli- ance with 4-3B of the Code of Ord inances. For the purpose of this Ordinance, the term “actively restored to running condition” in other than a recycling, junk or salvage yard shall mean if within the last thirty (30) days the owner of the business or premises on which the vehicle is located has spent at least ten (10) hours of labor in the repairing, re- building or reconstruction of the motor vehi- cle. The burden shall be on the owner to prove that it is being actively restored which may include receipts for the purchase of parts and supplies during the last thirty (30) days which have been installed in the vehicle. This exception for motor vehicles being actively restored shall not extend to vehicles from which parts are being taken to restore another vehicle. Parts being used in the restoration of a motor vehicle must be stored in an e nclosed building while restoration work is not taking place. For the purposes of this Ordinance, the term “recycling yard” shall include a “junk yard”, “salvage yard”, or “auto salvage yard”. Impound yards to which vehicles are taken for temporary or long term storage un- til control of vehicle can be returned to the owner, or the vehicles are recycled or auc- tioned off shall be considered recycling, junk or salvage yards. Regulatory Flood: A flood which is rep- resentative of large floods known to have o c- curred generally in the area and reasonable characteristic of what can be expected to oc- cur in a particular stream. The regulatory flood has a frequency of approximately 100 years determined from an analysis of floods on a particular stream and other streams in the same general region. Regulatory Flood Protection Elevation: The elevation to which uses regulated by this Ordinance are required to be elevated or floodproofed. Restaurants: 1. Drive-In Establishment: An estab- lishment which by design or phys- ical facilities or by service or pack- aging procedures, encourages or permits customers to receive or obtain a product which may be used or consumed in an automo- bile on the premises or to be enter- tained while remaining in an au- tomobile. This term does not in- clude sidewalk or patio cafes where service is provided to tables only. 2. Fast Casual Type: Where custom- ers are normally served at the same table or counter at which items are consumed but customers are served with disposable dishes and cutlery which are expected to be disposed of by the customer. 3. Fast Food Type: Where customers are normally served their food or beverages in disposable containers for consumption on the premises or within a motor vehicle. 4. Standard Type: Where customers are normally provided with an in- dividual menu and are served their food or beverages by a res- taurant employee at the same ta- ble or counter at which said items are consumed. Rooming House: A building where a room or rooms are provided for compens a- tion to three (3) or more persons. Rubble Disposal Site or Rubble Fill Site: The premises where rubble fill is placed, set down or deposited for the purpose of, or which has the result or effect of changing the existing contour or raising the elevation of said land with 25 cubic yards or more of fill. A fill site is also where the owner/operator advertises “fill wanted” regardless of the vol- ume. Temporary above-ground storage dur- Page 159 of 297 CHAPTER 27 SPECIAL PROVISIONS, EXCEPTIONS AND MODIFICATIONS 10-27-1 SPECIAL PROVISIONS, EXCEPTIONS AND MODIFICATIONS. 146 property unless approved by the City Council by encroachment agreement. [Ordinance 4841, 10/16/06] In “C-2” and less restrictive Dis- tricts, signs, overhangs, and marquees at- tached to a building may extend over street right-of-way lines provided the erection of such signs, overhangs, and marquees are con- structed in accordance with the provisions of the building code. G. Existing Unenclosed Porch, New Deck or Unenclosed Porch. 1. An existing unenclosed porch on the front of a dwelling built prior to adop- tion of Ordinance 2479, adopted 02/03/69, may be re-modeled or re- built to an enclosure when projecting no farther than the original open porch. [Ordinance 4656, 11/10/03] [Or- dinance 4855, 2/19/07] 2. A new deck or unenclosed porch ad- dition to a dwelling may be built eight (8) feet or one fourth (1/4) the dis- tance (whichever is greater) into the required front or rear yard setback. This shall only include the required setback as stated in the Bulk Regula- tions Section of the District in which located, and shall not include the av- erage setback required by the Front Yard Section of Chapter 5, General Regulations. Existing dwellings with a front or rear yard setback that is less than the minimum required shall cal- culate one fourth (1/4) the distance of the existing setback, however this shall not prohibit the erection of an eight (8) foot deck or unenclosed porch. This will not be interpreted in any way to authorize any addition over a platted building line, easement, property line or road right-of-way line. This provision shall not allow a deck or unenclosed porch addition within a required side yard setback, except a required side yard along a street frontage on a corner lot. Said addition is defined as a non-enclosed structure and, for decks in the front yard, with a non-solid side wall, if any at all, which cannot be enclosed in the future as an addition to the home. Non-solid wall shall mean a wall or fence utilizing a spindle or board de- sign with openings between boards that are at least the width of the boards. For porches in the front or rear, or decks in the rear, a solid wall may be used if it does not exceed for- ty-two (42) inches in height above the floor of the deck or porch. [Ordinance 4386, 10/18/99] [Ordinance 4656, 11/10/03] H. Special Permit Required. A Special Permit for the location of any of the following buildings or uses in any district permitted by this Ordinance must be ob- tained from the Board of Adjustment [Ordi- nance 3614, 1/9/89] after public hearing there- on: 1. Any public building or use erected or maintained by any department of the city, township, county, state or federal government, excluding parks or rec- reational trails and accessory uses and structures customarily incidental to a park or recreational trail. 2. Public and parochial schools and oth- er educational institutions having an established current curriculum similar to that ordinarily given in Waterloo public schools, and colleges, universi- ties, or institutions of higher educa- tion. 3. Hospitals, excluding animal hospitals, and clinics, excluding clinics in the “R- 4” Multiple Residence District or less restrictive district. 4. Group Homes (Unless located in a "C- 1" or less restrictive district). [Ordi- nance 4554, 6/3/02] 5. Halfway (Rehabilitation) Houses. [Or- dinance 4554, 6/3/02] Page 160 of 297 CHAPTER 27 SPECIAL PROVISIONS, EXCEPTIONS AND MODIFICATIONS 10-27-1 SPECIAL PROVISIONS, EXCEPTIONS AND MODIFICATIONS. 147 6. Community building, institutional or community recreation center or field, commercial and private outdoor rec- reational uses such as baseball fields, swimming pools, skating facilities, golf course or country clubs, minia- ture/goofy golf and driving ranges, Commercial Campgrounds, Hunting and Fishing Clubs, Skeet or Trap Shooting Ranges, Archery and Gun Range Facilities, Outdoor Paintball Facilities, Automobile Race Tracks, Drag Strips, Go-cart Tracks, Mini Bikes or Activity Areas for Motorcy- cles, Snowmobiles, or ATV’s, Drive-in Theaters, or similar public or private open air recreational uses and facili- ties, excluding public or private parks or pedestrian recreational trails and accessory uses and structures custom- arily incidental to a park or pedestrian recreational trail. Private non- commercial areas, such as non-profit clubs, etc. shall only require Special Permit approval if organized events or activities occur more than 12 times in a calendar year. [Ordinance 5395, 04/10/17] 7. Public or private cemetery or burial ground. (Minimum thirty (30) acres) [Ordinance 5395, 04/10/17] 8. Recycling, Junk or Salvage Yards as defined in this Ordinance provided that they are within the following zon- ing classifications: “M-1” Light Indus- trial District, “M-2” Heavy Industrial District or “M-2,P” Planned Industrial District and meet the following mini- mum requirements: The City of Waterloo in attempt to be more sustainable and encourage more ecologically friendly businesses adopts these salvage yard regulations in part based on the Iowa Recyclers Association’s I-CARE program. a. The yard shall be completely sur- rounded with a fence or wall that is eight (8) feet in uniform height and color. The fence shall be of an opaque material and kept free of any openings such as broken out areas and torn holes. Chain link or heavy wire gates may be used for see through inspection pur- poses for no more than forty (40) feet along each side of the yard having street frontage and at ap- proved points of access to a public street or alley. Chain link or heavy wire fencing that is free from torn areas or openings may be placed along sides of the yard adjoining a flood control levee or other such barrier which would permanently screen the yard from public view. No storage outside of fenced area except for receiving of vehicles that must be moved in 5 business days. b. No off-premise advertising shall be on any wall or fence. The name of the yard and other services of- fered by the yard, if placed on the wall or fence, shall occupy no more than ten (10) percent of the wall or fence. c. The posts, rails or other support- ing elements of the fence shall face the inside of the yard and not be visible from outside the yard. d. Vehicle bodies stacked higher than the wall or fence shall be no higher than two (2) car bodies above the wall or fence when stacked at least fifteen (15) feet from the wall or fence. Car bodies stacked no higher than the fence need not be 15 feet from the fence. All other stacked salvage material shall not be stacked higher than the allowa- ble building height for the District. The Board of Adjustment shall Page 161 of 297 CHAPTER 27 SPECIAL PROVISIONS, EXCEPTIONS AND MODIFICATIONS 10-27-1 SPECIAL PROVISIONS, EXCEPTIONS AND MODIFICATIONS. 148 have the power to grant an excep- tion to these stacking provisions so long as said exception is in a c- cordance with the purpose and in- tent of the Zoning Ordinance. e. All work performed shall be car- ried on within the fenced area or within an enclosed building or structure approved as a part of the salvage operation. f. Contaminating fluids, such as gasoline, oil and grease, are pro- hibited from being discharged on- to the grounAll automotive fluids must be properly removed and managed as part of the disman- tling procedure and/or prior to crushing the vehicles to ensure that no fluids are discharged into the ground. All fluids removed from the vehicles must be stored in containers that are in good con- dition. If containers are in excess of 55 gallons and stored outdoors they must have secondary con- tainment and be properly marked as to what fluids they contain and be properly stored to insure that they do not lead into the ground, sewer systems, drainage pipes, or bodies of water. f.g. No salvage materials shall be placed in the Floodway District. Materials in the Floodway Fringe District (100 year flood district) shall be in accordance with the performance standards of that District. h. New yards established after the adoption of these provisions shall place the required solid wall or fence no closer to any street lot line than the minimum front yard required in the District in which it is located. Within this setback there shall be at least four (4) 2- inch caliper understory trees with- in every 100 feet or part thereof that are maintained in a healthy condition. This does not pertain to expansions of existing yards within the same block and on the same street as the existing yard. All areas devoted to customer and/or employee parking located outside of the fence or wall area must be hard surfaced and on pri- vate property in accordance with the off-street parking Section of the Zoning Ordinance. [Ordinance 3104, 10/6/80] [Ordinance 3233, 8/2/82] [Ordinance 3323, 2/6/84] [Ordinance 3614, 1/9/89] [Ordinance 3864, 6/1/92] i. The Iowa Department of Natural Resources must be notified of any hazardous spill that has the poten- tial to leave the property by run- off, sewers, tile lines, culverts, drains, utility lines, or some other conduit; has the potential to reach a water of the state either surface or groundwater; the substance can be detected in the air at the boundaries of the facilities; there is a potential threat to public health and safety; j. Maintain a Spill Prevention con- trol and Countermeasures plan per EPA regulations. k. All lead-acid and hybrid batteries are properly removed and man- aged as part of the dismantling procedure and/or prior to crush- ing the vehicles. Spent lead-acid batteries are placed either in a covered storage area on an imper- vious surface or in plastic contain- ers with lids. Spent lead-acid bat- teries are recycled through a repu- Page 162 of 297 CHAPTER 27 SPECIAL PROVISIONS, EXCEPTIONS AND MODIFICATIONS 10-27-1 SPECIAL PROVISIONS, EXCEPTIONS AND MODIFICATIONS. 149 table battery recycler. Hybrid bat- teries should be recycled. l. Refrigerant is evacuated from each vehicle in accordance with appli- cable regulations, or contracts for refrigerant removal with a li- censed vendor. Records are main- tained for off-site refrigerant dis- posal/reclamation that includes the amount of refrigerant, the date spent, and the facility that re- ceived the refrigerant. m. Engines and transmissions to be resold are stored under a perma- nent roof on an impervious sur- face, or in an outside covered weather-proof container. Scrap core, engines and transmissions are stored under a permanent roof on an impervious surface, in an outside covered weather-proof container, or an impervious sur- face that drains to an oil-water separator. n. Vehicle hoods are routinely kept closed to reduce exposure to rain fall of engines that remain in the vehicles stored in the yard. o. Spent solvents from the parts cleaning systems are disposed of with an authorized processor. p. Waste water from parts washing is either recycled or collected for disposal in an approved manner, and shall not be discharged to the surface (ground) or any storm wa- ter collection system. q. Waste tires are stored on-site with at least 20 feet of clearance be- tween tire storage areas, the pe- rimeter of the yard and/or struc- tures. No more than 500 exposed non-racked tires and no more than 1,500 tires are kept on-site at any given time. r. Fluorescent bulbs are managed as Universal Waste and properly re- cycled. s. Maintain compliance with City of Waterloo Storm Water regulatory requirements and IDNR storm wa- ter general permit for industrial classification 5015. t. Maintain Iowa DOT recycler’s li- cense, Iowa DOT Used car Deal- er’s license, Sales Tax Permit, and Household Hazardous Material permit (if any are required). u. Any new impound lot must obtain Special Permit approval and meet all regulations as a Recycling, Junk or Salvage Yard. Existing im- pound lots that are not currently licensed as a Recycling Yard under Section 3-10 of the Code of Ordi- nances shall obtain said license by May 1, 2018. v. Must have current licenses, be up to date on any required training and follow all applicable state and federal regulations. w. All recycling facilities within the City of Waterloo are encouraged to be certified under the Iowa Re- cyclers I-CARE program. x. Any new yard must be at least 600 feet from any protected use as de- fined herein. y. Any yard that has failed to renew their Recycling Yard license pro- vided in Section 3-10 of the Code of Ordinances within six months of the deadline will be considered Page 163 of 297 CHAPTER 27 SPECIAL PROVISIONS, EXCEPTIONS AND MODIFICATIONS 10-27-1 SPECIAL PROVISIONS, EXCEPTIONS AND MODIFICATIONS. 150 abandoned and will have to cease operations or go through the Spe- cial Permit process and meet cur- rent regulations. 9. Waste Disposal Site [Ordinance 3263, 3/7/83]. Any such request shall in- clude the submittal of a site plan. The Commission may require any specific criteria to protect the health, safety and welfare of the citizens of Waterloo and vicinity, including, but not lim- ited to the following items: Detailed site plan delineating slope, access, fencing, provisions for erosion (wind and water), leaching, landscap- ing, setbacks and other required pro- visions. Performance Bond to secure the reha- bilitation of the site in accordance with the approved plan. Statement as to what types of wastes will be contained in the site. Review by the Iowa Department of Natural Resources [Ordinance 3614 1/9/89], advising the City of the poten- tial hazards and necessary safeguards. 10. Mobile Home Parks, including facto- ry-built home parks and subdivisions if the structures are not classified as real estate. 11. Rubble Disposal Site, Rubble Fill Site, or clean fill site, except clean fill ap- proved as part of a development plan. A duplicate of the application submit- ted to the Black Hawk County Health Department shall be submitted to the Commission. The application shall contain the signature of landowner, legal description of property, a plot plan showing area to be filled with ex- isting and proposed final elevations. The application shall also include an estimate of the number of cubic yards necessary and length of time estimat- ed to complete filling. [Ordinance 3590, 10/17/88] 12. Adult Businesses/Adult Uses [Ordi- nance 3642, 5/1/89] in accordance with “Adult Businesses/Adult Uses” of Sections 10-3-1, 10-15-1(A)(2), and 10- 27-1(N). 13. Gaming facilities, unless located with- in a Planned District where listed as a Permitted Use. [Ordinance 4735, 10/18/04] 14. One or two-family residential struc- tures when more than one (1) such structure is erected on a single lot in the “R-1” or “R-2” District. [Ordinance 4855, 2/19/07] [Ordinance 4885, 10/15/07] 15. Non-Limited Alcohol Sales Uses, when meeting the following mini- mum requirements: a. Where the business, when operat- ed in conformance with such rea- sonable conditions as may be im- posed by the Board of Adjust- ment, satisfies the following crite- ria: i. The proposed location, design, construction and operation of the particular use adequately safeguards the health, safety and general welfare of persons residing in the adjoining or surrounding residential area. ii. The business uses landscaping, walls or structures to prevent any noise, vibration or light generated by the business from having a significant det- rimental impact upon the ad- joining residential or protected uses. iii. The business will not unduly increase congestion on the streets in the adjoining resi- dential area. Page 164 of 297 C ITY OF WATER LOO Council Communication F lo w Eq ualization F ac ility O verflow C onnec t to S atellite W P F C , C ity C ontrac t No . 880. City Council Meeting: 11/6/2017 Prepared: 10/31/2017 R EV I EWER S : D epartment R eviewer Action D ate Waste Management H oambrecker, S teven Approved 11/1/2017 - 8:50 AM C lerk O ffice E ven, L eAnn Approved 11/1/2017 - 2:34 P M S UB J E C T:T he pub lic hearing is cancelled and will be res c hed uled fo r a later d ate. S ub mitted by:S ubmitted By: S teven Ho amb recker, Direc to r, Was te Management S ervic es Page 165 of 297 C ITY OF WATER LOO Council Communication S ale and c o nveyanc e of city o wned property to R ebel S affo ld Jr. and R ho nda S . S affo ld to purchas e c ity o wned property generally loc ated at 408 and 414 F owler S treet, with Development Agreement. City Council Meeting: 11/6/2017 Prepared: 10/18/2017 R EV I EWER S : D epartment R eviewer Action D ate P lanning & Z oning S chroeder, Aric Approved 11/1/2017 - 10:25 AM C lerk O ffice F elchle, K elley Approved 11/1/2017 - 4:53 P M ATTA C H M EN TS : Description Type Application C over Memo Action G arage Q uote C over Memo 414 F owler L egal D ocuments C over Memo 408 F owler L egal D ocuments C over Memo Aerial M ap C over Memo Development Agreement C over Memo S UB J E C T: Motio n to rec eive and file proof o f pub lic ation of notice o f pub lic hearing. HO LD HEAR ING - No comments o n file. Motio n to c lo s e hearing and rec eive and file o ral and written comments. R es o lution autho rizing sale and conveyanc e o f c ity owned p ro p erty loc ated at 408 and 414 F owler S treet, to R ebel S affold Jr. and R ho nda S . S affold in the amount o f $1.00 per p ro p erty, and authorizing the C ity Attorney to p rep are and d eliver the deed acc o rd ingly, and autho rizing the Mayo r and C ity C lerk to exec ute said d o cuments . R es o lution approving a Development Agreement with R ebel S affo ld Jr. and R hond a S . S affo ld for the property lo cated 408 and 414 F o wler S treet, and authorizing the Mayo r and C ity C lerk to exec ute s aid agreement. S ub mitted by:S ubmitted By: No el Anderson, C o mmunity P lanning and Develo p ment Directo r R ec o mmended Ac tio n:Ap p ro val S ummary S tatement: T he parc el fo rmerly kno wn as 414 F o wler S treet was acquired by Q uit C laim Deed , d ated Marc h 24, 2006, fro m Nektario s Bro kalakis ; R es o lution # 2006-252.T he property was demolished in 2009. T he parcel formally known as 408 Fowler S treet was acquired through I owa C ode 657A also in 2009, and both sites have have been maintained by the city since. P arcel 8913-25-212-004 (414 F owler S treet) which is immediately to the west of the applicants home is 40' x 140' with a total square footage of 5,600 square Page 166 of 297 feet with an assessed value of $1,050. P arcel 8913-25-212-003 (408 F owler Street) is a irregular shaped lot with a total square footage of 4,400 and has a current assessed value of $960. B oth parcels are considered lots of record as neither parcel meet the minimum parcel square footage of 6,000 square feet or the minimum lot width of 50', as required by ordinance adopted in 1969. At the September 25, 2017 B uilding and G rounds C ommittee meeting, the committee recommended approval of the request as submitted. Exp enditure R equired : No ne S ource o f F und s :N/A P olic y Issue:S ale of C ity o wned P roperty / 657A Nuis anc e Abatement Alternative: Legal Desc riptio ns :S ee attac hed Page 167 of 297 P a g e 1 6 8 o f 2 9 7 P a g e 1 6 9 o f 2 9 7 Page 170 of 297 Page 171 of 297 Page 172 of 297 0 10050Feet / City of Waterloo, IowaNote: Base map data source is Black Hawk County. This map does not represent a survey, no liability is assumed for the accuracy of the data delineated herein, either expressed or implied by Black Hawk County, the Black Hawk County Assessor, or their employees. The City of Waterloo makes no warranty, express or implied, as to the accuracy of the information shown on this map, and expressly disclaims liability for the accuracy thereof. Users should refer to official plats, surveys, recorded deeds, etc. located at the Black Hawk County Assessor’s Office for complete and accurate information. 414 Fowler StreetLot to be Sold City owned 408 Fowler StreetLot to be SoldCity owned 418 Fowler StreetApplicants Home 404 Fowler StreetCity owned Page 173 of 297 Preparer Information: Christopher W. Western 715 Mulberry Street Waterloo Iowa 50703 (319) 291.4366 Name Address City Phone SPACE ABOVE THIS LINE FOR RECORDER DEVELOPMENT AGREEMENT This Development Agreement (the “Agreement”) is entered into as of November 6, 2017 by and between Rebel Saffold Jr. and Rhonda S. Saffold, (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 finance and construct a garage and related improvements on vacant lots generally located at 408 and 414 Fowler Street, and legally described on Exhibit “A” attached hereto (the “Property”). AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Sale of Property; Title. Subject to the terms hereof, City shall convey the Property to Company for the sum of $1.00 per lot (the “Purchase Price”). Conveyance shall be by quit claim deed, free and clear of all encumbrances arising by or through City except: (a) easements, conditions and restrictions of record which do not, in Company’s opinion, interfere with Company’s proposed use; (b) current and future real estate real property taxes and assessments subject to the agreements made herein; (c) general utility and right-of-way easements serving the Property; and (d) restrictions imposed by the City zoning ordinances and other applicable law. City shall have no duty to convey title to Company until Company delivers to City reasonable and satisfactory proof of financial ability to undertake and carry on the Project (defined below), which may take the form of a lending commitment letter. Company shall, at its Page 174 of 297 DEVELOPMENT AGREEMENT Page 2 own expense, prepare an updated abstract of title, or in lieu thereof Company may, at its own expense, obtain whatever form of title evidence it desires. If title is unmarketable or subject to matters not acceptable to Company, and if City does not remedy or remove such objectionable matters in timely fashion following written notice of such objections from Company, Company may terminate this Agreement. City shall provide any title documents it has in its possession, including any abstracts, to assist in title preparation. 2. Timeliness of Construction; Possibility of Reverter. The parties agree that Company’s commitment to undertake the Project and to construct a garage in a timely manner constitutes a material inducement for the City to convey the Property or to cause the Property to be conveyed, to Company and that without said commitment City would not do so. Measured from the date the Property is deeded to Company, Company must obtain permits and begin construction within one (1) month and substantially complete construction of a detached garage no later than November 6, 2019. If Company has not, in good faith, begun the construction of the detached garage on the schedule stated above, then title to the Property shall revert to the City, except as provided in this Agreement; provided, however, that if construction has not begun within the state period but the development of the Project is still imminent, the City Council may, but shall not be required to, consent to an extension of time for the construction of the Improvements, and if an extension is granted but construction of the Improvements has not begun within such extended period, then the title to the Property shall revert to the City after the end of said extended period. If Company determines at any time that the Project is not economically feasible, then after giving thirty (30) days’ advance written notice to City, Company may convey the Property to City by special warranty deed, and thereupon neither party shall have any further obligation under this Agreement except as expressly provided. If development has commenced within the required period or any extended period and 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 of the Project 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 then title to the Property shall revert to the City. 3. Reverter of Title; Indemnity. In the event of any reverter of title, Company agrees that it shall, at its own expense, promptly execute all documents, including but not limited to a special warranty deed, or take such other actions as the City may reasonably request to effectuate said reverter and to deliver to City title to the Property that is free and clear of any lien, claim, or encumbrance arising by or through Company. Company shall pay in full, so as to discharge or satisfy, all liens, claims, charges, and encumbrances on or against the Property. If Company fails to deliver such documents, including but not limited to a special warranty deed, to City within thirty (30) days of written demand by City, then City shall be authorized to execute, on Company’s behalf and as its attorney-in-fact, the special warranty deed required by this Page 175 of 297 DEVELOPMENT AGREEMENT Page 3 Section, and for such limited purpose Company does hereby constitute and appoint City as its attorney-in-fact. Company further agrees that it shall indemnify City and hold it harmless with respect to any demand, claim, cause of action, damage, or injury made, suffered, or incurred as a result of or in connection with the Project, Company’s failure to carry on or complete same, or any lien, claim, charge, or encumbrance on or against the Property of any type or nature whatsoever that attaches to the Property by virtue of Company’s ownership of same. If City files suit to enforce the terms of this Agreement and prevails in such suit, then Company shall be liable for all legal expenses, including but not limited to reasonable attorneys’ fees. Company’s duties of indemnity pursuant to this Section shall survive the expiration, termination or cancellation of this Agreement for any reason. 5. No Encumbrances; Limited Exception. Until completion of the Improvements, Company agrees that it shall not create, incur, or suffer to exist any lien, encumbrance, mortgage, security interest, or charge on the Property, other than such mortgage or mortgages as may be reasonably necessary to finance Company’s completion of the Improvements and of which Company notifies City in advance of Company’s execution of any such mortgage. Company may not mortgage the Property or any part thereof for any purpose except in connection with financing of the Improvements. 6. 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. 7. Reserved 8. Reserved 9. Reserved 10. 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. 11. Representations and Warranties of Company. Company hereby represents and warrants as follows: Page 176 of 297 DEVELOPMENT AGREEMENT Page 4 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. 12. No Assignment or Conveyance. Company agrees that it will not sell, convey, assign or otherwise transfer its interest in the Property prior to completion of the Project, whether in whole or in part, to any other person or entity without the prior written consent of City. Reasonable grounds for the City to withhold its consent shall include but are not limited to the inability of the proposed transferee to demonstrate to the City’s satisfaction that it has the financial ability to observe all of the terms to be performed by Company under this Agreement. 13. 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. 14. 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, to Rebel Saffold Jr. and Rhonda S. Saffold, 418 Fowler Street, Waterloo, Iowa 50701, Attention: Rebel Saffold 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 Page 177 of 297 DEVELOPMENT AGREEMENT Page 5 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. 15. 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. 16. 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. 17. 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. 18. 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. 19. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 20. 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. 21. Entire Agreement. This Agreement, together with the exhibits attached hereto, constitutes the entire agreement of the parties and supersedes all prior or Page 178 of 297 DEVELOPMENT AGREEMENT Page 6 contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 22. 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 Buyer By: ___________________________ By: ___________________________ Quentin Hart, Mayor Rebel Saffold Jr. By: ___________________________ Rhonda S. Saffold Attest: _________________________ LeAnn Even, Deputy City Clerk Page 179 of 297 DEVELOPMENT AGREEMENT Page 7 Page 180 of 297 EXHIBIT “A” Legal Descriptions of Properties Parcel- 8913-25-212-004 The west 40 feet of Lot 2, Block 7, Lane Fowlers Addition, Waterloo, Black Hawk County, Iowa. And Parcel- 8913-25-212-003 Page 181 of 297 C ITY OF WATER LOO Council Communication S ale and c o nveyanc e of city o wned property loc ated at the no rtheas t corner o f Id aho S treet and Martin Luther King, Jr. Drive to T he O verland G ro up, LLC in the amo unt o f $25,000, and approving a P urc hase and S ale C o ntract. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate P lanning & Z oning Anderson, N oel Approved 11/1/2017 - 10:47 AM C lerk O ffice E ven, L eAnn Approved 11/1/2017 - 3:28 P M ATTA C H M EN TS : Description Type Legal B ackup M aterial P urchase and S ale Agreement B ackup M aterial S UB J E C T: M otion to receive and file proof of publication of notice of public hearing. HO LD HEAR ING - No comments o n file. Motio n to c lo s e hearing and rec eive and file o ral and written comments. R es o lution approving the s ale and c o nveyanc e of city o wned property lo cated at the no rtheas t corner of Idaho S treet and Martin Luther King, Jr. Drive to T he O verland G roup , L L C in the amount of $25,000, and authorizing the Mayo r and C ity C lerk to execute s aid doc uments. R es o lution approving P urchas e and S ale C ontrac t b etween T he O verland G roup , LLC and the C ity o f Waterloo, Iowa, fo r the p urc hase o f c ity- o wned pro p erty loc ated at the no rtheas t c o rner o f Id aho S treet and Martin Luther King, Jr. Drive, and autho rizing the Mayor and C ity C lerk to exec ute s aid doc uments . S ub mitted by:S ubmitted By: No el Anderson, C o mmunity P lanning & Develo p ment Directo r R ec o mmended Ac tio n:Ap p ro ve P urc has e and S ale C o ntract S ummary S tatement: T he C ity has owned s ite s inc e develo p ment o f Martin Luther King Jr Drive in the 1990's . T he p arcel is excess right-o f-way that was offered b ack thro ugh 306.23 p ro cess b ack in 2007. No o ffers were rec eived fo r the ap p rais ed value of $40,000 at that time. T he parc el is 1.42 acres in s ize, and d o es not includ e the area right at c orner where trail head fo r rec reational trail is loc ated. Exp enditure R equired :NA S ource o f F und s :NA Page 182 of 297 P olic y Issue: T his reques t wo uld help meet the following S trategies in the C ity o f Waterlo o S trategic P lan 2017-2022: 1.6 attract new retail bus inesses to Waterloo 3.8 to fo s ter new inves tment in C UR A Alternative:No t s ell Background I nformatio n: T he C ity has owned this land since 1990's . It was offered up fo r sale thro ugh 306.23 p ro cess, with no offers rec eived. T his agreement will work to create new jobs , new taxab le value o n s ite and to c reate mo re bus ines s in this area of the C ity o f Waterloo. Legal Desc riptio ns :Attached Page 183 of 297 Page 184 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 1 V5.3.3.0 THIS PURCHASE AND SALE CONTRACT OF REAL PROPERTY (the “Agreement”) made and entered into this day of 2017 by and between CITY OF WATERLOO and/or ASSIGNS, (hereinafter “Seller”) and THE OVERLAND GROUP, LLC. and/or ASSIGNS, (hereinafter “Buyer”). WITNESSETH: WHEREAS, Seller is the owner of a certain tract of real property measuring approximately 265' +- of frontage on Idaho Street by 67' +- of depth frontage on MLK by 183' +- Willow Street for a total 1.42± acres, City of Waterloo, Black Hawk County, Iowa, which tract of land is more particularly shown on Exhibit “A” attached hereto and made a part hereof (the “Property”). The Property shall mean net usable acres and shall not include real property burdened by permanent rights-of-way for public roads, drainage or utilities; and WHEREAS, Buyer desires to purchase the Property upon the terms, provisions and conditions hereinafter set forth, and together with all appurtenances, improvements, easements and/or hereditaments thereunto belonging; and NOW THEREFORE, for and in consideration of the mutual covenants and agreements contained herein, Buyer and Seller hereby covenant and agree as follows: 1. PURCHASE PRICE. The total purchase price for the Property shall be TWENTY FIVE THOUSAND AND NO/100 DOLLARS ($25,000.00). The Purchase Price, less credit for monies heretofore paid to Seller by Buyer for the Inspection Period and any payments made pursuant to Section 18 herein below, shall be paid to Seller at closing as hereinafter defined (the “Closing”). 2. EARNEST MONEY. Buyer shall deposit ONE THOUSAND AND NO/100 ($1,000.00) into a non-interest bearing escrow account held by David D. Nelson, Whitfield & Eddy, P.L.C., 699 Walnut Street Suite 2000, Des Moines, Iowa 50309, (515) 558-0150, Email: Portwine@whitfieldlaw.com, within five (5) days after execution of the contract. 3. INSPECTION PERIOD. For a period of one hundred and eighty (180) days from the date of this Agreement (the “Inspection Period”), Buyer shall have the privilege of going upon the Property as needed to confirm zoning, confirm availability of all utilities (including sewer), to inspect, examine, survey, make soil and subsoil tests, percolation tests, arrange financing for the proposed development and to otherwise do what Buyer reasonably deems necessary to determine, to Buyer’s sole satisfaction, whether the Property is suitable for Buyer’s intended development and use. If Buyer exercises its rights under the provisions of this Section, it shall (1) keep the Property free of any liens or third-party claims resulting therefrom; (2) promptly pay when due the costs of all tests, investigations and examinations done with regard to the Property; (3) indemnify and hold Seller harmless from and against any and all liability, damages, claims, causes of action, costs or other expenses, including without limitation reasonable attorney’s fees, paid, incurred or asserted against Seller any lien claims or for injuries to or death of persons or damage to property arising from or caused by Buyer’s entry onto the Property or the negligence or willful misconduct of Buyer, its agents, employees and contractors in Page 185 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 2 V5.3.3.0 connection with the exercise by Buyer of the rights hereunder; and (4) if Closing does not occur for any reason, fully restore the Property as nearly as practicable to its condition immediately before such exercise. This Section shall survive the termination of this Agreement or Closing and delivery of the Deed. If Buyer determines, in its sole discretion, that the Property is unsuitable for its proposed development and gives notice of this to Seller prior to the expiration of the Inspection Period, then this Agreement shall terminate and all earnest monies less $100 to Seller as independent consideration for the right to terminate shall be immediately returned to the Buyer. If Buyer terminates this contract before the end of the initial Inspection Period, Buyer shall be entitled to the immediate return of the Earnest Money without the need of Seller's release. Notwithstanding the foregoing, the Buyer may extend its Inspection Period for an additional ninety (90) days by depositing into escrow an additional FIVE THOUSAND AND NO/100 DOLLARS ($5,000.00) nonrefundable Earnest Money, for a total of SIX THOUSAND AND NO/100 DOLLARS ($6,000.00), which shall be applicable to the purchase Price but nonrefundable. 4. SURVEY. Buyer will secure at Buyer’s expense a boundary survey of the Property, prepared by an engineer or land surveyor registered in the state of Iowa, selected by Buyer. This boundary survey shows all easements, rights of way, encroachments and matters of record, together with a certification as to the number of acres. 5. CONVEYANCE AND PERMITTED EXCEPTIONS. Upon payment by Buyer of all amounts due at Closing for the Property and Buyer’s performance of all other obligations to be performed by Buyer at Closing, Seller shall convey title to the Property to Buyer by general warranty deed subject to any permitted exceptions. 6. TITLE EVIDENCE AND ABSTRACT. Within thirty (30) days after execution of this Contract for Purchase and Sale, Seller shall deliver to David D. Nelson, Whitfield & Eddy, P.L.C., 699 Walnut Street Suite 2000, Des Moines, Iowa 50309, (515) 558-0150, Email: Portwine@whitfieldlaw.com (the “Title Company”) the original abstract of title for the Property. The abstract will be updated for closing at Purchaser’s expense. If the original abstract of title cannot be located, Seller shall pay all costs of obtaining a new abstract as required for closing. Notwithstanding anything in this Agreement to contrary, the Inspection Period shall be extended day for day for the duration of the period necessary, if any, to create a new abstract. Within thirty (30) days after receipt of the Abstract, Buyer shall obtain a commitment (the “Commitment”) for owner’s policy of title insurance from Tara Lawrence, Title Guaranty, 2015 Grand Avenue, Des Moines, Iowa 50312, 515-725-4904, 800-432-7230, Fax: 515-725-4901, certified to a current date, and at Closing, the title policy referred to in the commitment (the “Title Policy”) in the amount of the Purchase Price. If the commitment or survey shows any defects or encumbrances or any covenant, restriction, easement or right -of-way of record or any private road or utility line or facility which in Buyer’s reasonable judgment will materially interfere with Buyer’s proposed development of the Property, then prior to Closing, Buyer shall notify Seller of its objections to any such matter. Seller shall have a reasonable time to cure the title defects to which Buyer has objected. If Seller fails to cure the title defects, Buyer shall have the option of either (1) accept title subject to the objections raised by Buyer and such accepted objections become Permitted Exceptions Page 186 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 3 V5.3.3.0 (“Permitted Exceptions”) without any adjustment in the Purchase Price, or (2) rescind this Agreement, whereupon the earnest monies less $100 to Seller as independent consideration for the right to terminate shall be immediately returned to Buyer by Escrow Agent, or (3) work with Seller to satisfy unacceptable matters and postpone the closing date for the same time period as it takes to satisfy these matters. 7. DEVELOPMENT OF TRACT AND CONDITIONS PRECEDENT. Buyer's obligation to close is subject to the satisfaction, as of the Closing Date, of each of the conditions described below (any of which may be waived in whole or in part in writing by Buyer at or prior to the Closing Date). Unless specifically stated as Seller's obligation, the satisfaction of all these conditions shall be at Buyer's sole expense. Buyer shall diligently and in good faith pursue the satisfaction of these conditions and Seller shall promptly cooperate whenever required by Buyer. In the event the conditions below have not been satisfied to the Buyer's satisfaction, the Buyer shall have the right to terminate this Agreement by so notifying Seller in writing. In such event, the Escrow Agent shall return the refundable earnest money to Buyer. A. Subdivision. In the event a subdivision plat is required pursuant to applicable law in connection with the conveyance of the Property to Buyer and/or the development of the Property, Buyer shall use diligent efforts to cause the Property to be properly subdivided in compliance with applicable law prior to Closing. Without limitation, Seller shall sign subdivision plats and other normal and customary documentation as may be required to comply with applicable laws relating to the subdivision of the Entire Tract. In the event that the Seller has property lying within 500 feet of the Property conveyed hereunder is subdivided out of a larger tract still owned by the Seller the remaining Seller’s Property shall be subjected to a DECLARATION OF COVENANTS AND RESTRICTIONS as described on Exhibit “B”. Without limitation, Seller shall sign DECLARATION OF COVENANTS AND RESTRICTIONS on or before Closing. Buyer shall pay for subdivision costs. B. Mutual Cooperation. Buyer and Seller agree to cooperate with one another in all reasonable respects in connection with any approvals, zoning changes or variances, or similar actions or consents which may be necessary or appropriate in connection with use of the Property and to otherwise cooperate in all reasonable respects in connection with the development of the Property. As of the Closing Date the Property shall be properly zoned for commercial real estate with all necessary zoning variances, if any are required, approved for Buyer’s intended development. Buyer shall pay all costs incurred by either party in connection with satisfying this condition. C. No Moratoriums. There shall be no development or building moratorium in effect with regard to the Property. In the event any such moratorium shall exist, then Buyer shall have the option of either (1) closing the transaction in accordance with the terms of this Agreement, (2) delaying closing until after the moratorium is lifted, or (3) terminating this Agreement by notice to the Seller, in which event the earnest monies shall be returned to Buyer. Page 187 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 4 V5.3.3.0 D. Ingress and Egress. There shall be suitable ingress and egress to the Property, including all necessary turning movements and curb cuts for Buyer's proposed development. Buyer and Seller agree that there shall be no shared access. E. Sanitary Sewer and Water Facilities. Buyer shall have (1) determined that sanitary sewer and water facilities adequate to serve the Property are available and (2) secured all required governmental approvals for the installations and use of such sanita ry sewer and water facilities. F. Governmental Approvals. Buyer shall have obtained all necessary governmental approvals from the appropriate authorities for Buyer's proposed development, including without limitation, building permits, site plan approval including parking, and storm water retention. In addition, Buyer shall have received approval of its proposed tenant of the site plan as satisfying all tenants’ conditions pursuant to tenant's lease agreement with Buyer. If Buyer’s have requests pending before any government body for a permit, license or other approval required to begin the construction Buyer anticipates on the Property, Buyer may, by delivering written notice prior to expiration of this Agreement, extend the closing for thirty (30) days past such time as all applicable government bodies rule on the issuance of any requested permits, not to exceed one hundred twenty (120) days in addition to all other extensions provided for herein. G. Taxes/Liens. In the event there are unpaid taxes or liens relating to the Property for any time prior to the execution of the contract, Buyer will give Seller written notice by facsimile transmission or electronic mail of such unpaid taxes or liens effecting the Property and request that Seller pay those taxes or liens. In the event Seller fails to pay the taxes or liens within three (3) calendar days of Seller’s receipt, Buyer may pay those taxes or liens directly and Seller shall reimburse Buyer for such paid amounts on or before Closing out of Seller's closing proceeds. The Parties agree that Seller will only be liable for taxes or liens resulting from its use of the Property prior to Closing. For purposes of this Section 7 (G), notice to Seller’s agent shall constitute sufficient notice to Seller. 7.1 PROPOSED USE. Buyer shall only use the Property for the construction of a Dollar General Store. If construction in not commenced within two years of the date of closing Seller may repurchase the property for the purchase price paid by Buyer. If Seller does not elect to repurchase the property within 24 months from the date of closing the Dollar General Store use restriction shall terminate and the property may be used for any lawful purpose. 8. NON-NEGOTIATION. Seller hereby covenants and agrees that it shall not during the Inspection Period or any extension thereof, nor prior to closing, lease the Property or convey, demise, or otherwise encumber the Property except as specifically provided in this Agreement. Page 188 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 5 V5.3.3.0 9. REPRESENTATIONS AND WARRANTIES OF BUYER. Buyer represents and warrants to Seller that: A. Buyer is a Missouri Limited Liability Company, duly organized, validly existing, and in good standing under the laws of the State of Missouri and duly authorized to transact business in and in good standing under the laws of the state where the Property is located. B. Buyer has full capacity, right, power and authority to execute, deliver and perform this Agreement and all documents to be executed by Buyer pursuant hereto. 10. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller to the best of their knowledge represents and warrants, and covenants with, Buyer as follows: A. Seller has good and indefeasible fee simple title to the Property subject to matters of record and affecting the Property and at Closing will have and will convey to Buyer by warranty deed good and indefeasible fee simple title to the Propert y, free and clear of all liens, defects, encumbrances, conditions, exceptions, restrictions or other matters affecting title except Permitted Exceptions; B. Seller has full capacity, right, power and authority to execute, deliver and perform this Agreement and all documents to be executed by Seller pursuant hereto; provided, however, that this Agreement shall not be binding upon Seller until approval by the city council following a public hearing as prescribed by Iowa law; C. Seller has not received any written notice of any current or pending litigation, tax appeals or environmental investigations against Seller or the Property and, to Seller’s knowledge, there is no pending litigation, tax appeals or environmental investigations against Seller or the Property; D. Seller has not entered into any contracts, subcontracts or agreements affecting the Property which will be binding upon Buyer after the Closing; E. Seller has not received any written notice from (or delivered any notice to) any governmental authority regarding any violation of any law applicable to the Property and, to the best of Seller’s knowledge, there are no such violations; F. There are no occupancy rights, leases or tenancies affecting the Property; G. No person or entity has any option, right of first refusal or other right to purchase the Property or any part thereof or interest therein; H. To Seller’s knowledge, no pending or, to Seller’s knowledge, threatened condemnation proceedings affecting the Property and Seller has not received any written notice that there is any pending or threatened condemnation of all or any part of the Property; I. To Seller’s knowledge, no hazardous substances have been generated, stored, released, or disposed of on or about the Property in violation of any law, rule or regulation applicable to a Property which regulates or controls matters relating to the environment or public health or safety (collectively, “Environmental Laws”). Seller has not received any written notice from (nor delivered any notice to) any federal, state, county, municipal or other governmental department, agency or authority concerning any petroleum product or other hazardous substance discharge or seepage relating to the Property. For purposes of this Agreement, “hazardous substances” shall mean any substance or material that is defined or deemed to be hazardous or toxic pursuant to any Environmental Laws; and J. Seller has no knowledge of any hazardous or solid waste placed on the property that would require remediation or disposal. Page 189 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 6 V5.3.3.0 Should Seller receive notice or actual knowledge of any materially inaccurate information regarding any of the matters set forth in this Section 10 after the date of this Agreement and prior to Closing, Seller will immediately notify Buyer of the same in writing. If Seller is unwilling or unable to correct such inaccuracy on or before Closing of the applicable Property, Buyer may cancel this Agreement and any Earnest Money shall be returned to Buyer. The representations and warranties of Seller shall survive the Closing for a period of one (1) year. Any action based on a breach of any such representations or warranties shall be commenced within such one (1) year period or deemed waived. 11. NOTICES. All notices will be in writing and served by postage prepaid certified mail, by next day delivery (such as Federal Express), by facsimile transmission, or by electronic mail to the addresses shown below, until notification of a change of such addresses. All such notices shall be deemed delivered on the date initiated. For Buyer: With a Copy To: The Overland Group The Overland Group 194 Narrows Drive, Suite 1 1598 Imperial Center, Ste. 2001 Birmingham, AL 35242 P.O. Box 885 Phone: 205-995-2990 West Plains, MO 65775 Fax: 205-995-2989 For Seller: CITY OF WATERLOO 715 Mulberry Street | Waterloo, Iowa 50703 Phone: 319-291-4366 | Fax: 319-291-4262 adrienne.miller@waterloo-ia.org 12. AGENCY DISCLOSURE. THE BUYERS ARE LICENSED REAL ESTATE BROKERS IN THE STATES OF MISSOURI AND ALABAMA. There is no listing company. The selling company Sulentic-Fischels Commercial Group is assisting the Buyer as a transaction broker. 13. BROKER. Each party represents and warrants to the other that Sulentic-Fischels Commercial Group is the only Broker in connection with the sale of the Property. Buyer agrees to pay Sulentic-Fischels Commercial Group in this transaction, in cash, at closing, a FLAT RATE FEE commission in the amount of $10,000.00 (TEN THOUSAND AND 00/100). Buyer and Seller each warrant and represent to the other that no real estate broker or agent other than Broker aforementioned have been used or consulted in connection with the negotiation or execution of this Agreement and each covenants and agrees that it will defend, indemnify and save the other harmless from and against any actions, real estate commissions, fees, costs and /or expenses (including reasonable attorney’s fees) resulting or arising from acts of the Real Estate Agent: Matt Miehe CCIM, Commercial Specialist Sulentic-Fischels Commercial Group 319-291-7005 - Direct 319-269-6222 - Mobile Page 190 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 7 V5.3.3.0 indemnifying party and resulting in commission, fees, costs and/or expenses being actually found due to any real estate broker or agent by a court of competent jurisdiction in connection with the purchase and sale, if at all, of the Property. 14. DISCLAIMER. Seller and Buyer acknowledge that they have not relied upon advice or representations of Broker (or Broker’s associated salespersons) relative to the legal or tax consequences of this contract and the sale, purchase or ownership of the Property. Seller and Buyer acknowledge that if such matters are of concern to them in the decision to sell or purchase the Property, they have sought and obtained independent advice relative thereto. 15. DEFAULT. In the event Seller breaches its covenant to convey the Property to Buyer or otherwise fails to perform its obligations under this Agreement which are to be performed by Seller at or prior to Closing in accordance with its terms, Buyer shall be entitled to one of the following as Buyer’s sole remedy: (a) terminate this Agreement and receive a prompt and complete return of the Earnest and any other monies heretofore paid by Buyer to Seller or for Buyers out-of-pocket expense: OR (b) obtain specific performance of this Agreement. If Buyer fails to perform as required under this Agreement, then Seller shall receive the earnest monies as liquidated damages, it being agreed between Buyer and Seller that such sum shall be liquidated damages for a default of Buyer hereunder because of the difficulty, inconvenience, and the uncertainty of ascertaining actual damages for such default. 16. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT (FIRPTA). In the Closing of this transaction, Seller and Buyer shall comply with the FIRPTA and the regulations promulgated thereunder by the IRS. 17. NON-BUSINESS DAYS. If any date herein set forth for the performance of any obligations by Seller or Buyer or for the delivery of any instrument or Notice or for the satisfaction of any condition precedent, or the expiration of any contingency period, as herein provided should be on a Saturday, Sunday or legal holiday, the compliance with such obligations or delivery or satisfaction of such condition or expiration of such contingency period, shall be extended to the next business day following such Saturday, Sunday or legal holiday. As used herein, the term “legal holiday” means any state or federal holiday for which financial institutions or post offices are generally closed in t he State of Iowa for observance thereof. 18. CLOSING. In the event Buyer exercises its rights to purchase the Property, the consummation of the purchase and sale, delivery of the deed of conveyance and payment of the Purchase Price (the “Closing”) shall take place at a legal office on a date and time mutually agreed to by the parties hereto, but in no event later than sixty (60) days after the end of the Inspection Period, or any extensions of Closing as outlined in Section 18. All federal, state, county and municipal ad valorem real property taxes and assessments with respect to the Property shall be prorated at closing. If the amount of such taxes and assessments is not known as of closing, then the pro-ration of such taxes and assessments shall be made upon the basis of the most recent ascertainable statements, and such pro- rations shall be adjusted when such taxes and assessments are available. Page 191 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 8 V5.3.3.0 Seller agrees that it shall deliver sole and exclusive possession of the Property to Buyer at Closing free and clear of all tenancies. Seller further agrees that Buyer shall have the option to set a closing date upon sixty (60) days written notice. Seller shall be able to remove any furniture, buildings, fixtures, or contents prior to closing. Any furniture, buildings, fixtures, or contents remaining on the property after closing shall be owned by the Buyer. In the event that Buyer sets a closing date in accordance with this section and Seller fails or refuses to close on the closing date as set, Buyer may, (1) either waive the default and proceed to close the transaction, or (2) terminate the contract and receive the return of all Earnest Money in which case Buyer shall also be entitled to recover all of Buyer's out of pocket expenses in due diligence and design of its project in an amount not to exceed fifty thousand Dollars ($50,000). The remedies contained herein shall be in addition and cumulative to those set forth in section 15 above. Notwithstanding the foregoing, Buyer may extend the closing date for two (2) additional periods of sixty (60) days each upon payment of $5,000 to the Escrow Agent at the time each such extension is requested, which deposits shall be non-refundable (subject only to Seller’s ability to convey clear title), and shall be applied towards the Purchase Price at closing. Seller will pay the costs of Seller’s counsel, preparation of the deed and any bill of sale, pay all costs of obtaining a new abstract if original cannot be found,, and transfer taxes for the conveyance. Buyer will pay the cost of Buyer’s counsel, the cost of the survey, all loan costs required by Buyer’s lender, updating original abstract, title policy, escrow fees, broker commissions and recording fees for the deed and mortgage, and any applicable mortgage tax. 19. GOVERNING LAW. This Agreement shall be construed, and the terms hereof shall be enforceable, in accordance with the internal laws (as distinguished from the conflicts of law provisions) of the state where the Property is located, and in the event any legal proceedings are brought in connection with this Agreement, the parties agree that the venue therefore shall be only state and federal courts located in the state where the Property is located, and the courts to which an appeal therefrom may be taken. 20. EXPENSES OF ENFORCEMENT. In the event of litigation between the parties with respect to the Property, this Agreement, the performance of their obligations hereunder or the effect of a termination under this Agreement, the losing party shall pay all costs and expenses incurred by the prevailing party in connection with such litigation, including reasonable attorneys’ fees. 21. SEVERABILITY. In case any of the provisions of this Agreement shall for any reason be held invalid, illegal, or unenforceable in any respect, the remaining provisions shall remain in effect and the Agreement be performed in a fair and equitable manner as to any uncertainties arising from the unenforceable provisions. Page 192 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 9 V5.3.3.0 22. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures may be faxed or e-mailed. 23. AMENDMENTS. Neither this Agreement nor any provisions hereof may be waived, modified, amended, discharged or terminated except by an instrument in writing signed by the party against which the enforcement of such waiver, modification, amendment, discharge or termination is sought, and then only to the extent set forth in such instrument. 24. DESTRUCTION OR DAMAGE. Risk of loss by damage or destruction to the Property prior to the Closing shall be borne by Seller. The parties acknowledge that if there are improvements on the Property, and in the event of any damage or casualty to any such improvements on the Property, by fire or other casualty, this Agreement shall continue unaffected, and Buyer shall have no right to any insurance proceeds of Seller with respect to said damage. 25. CROPS/FARMING. In the event that the Property is farmed for crops, Seller shall have the right to plant crops on the property, maintain and harvest the crop while Property is under contract. If Buyer closes on the Property and desires to commence construction prior to harvesting the crops, Buyer shall pay Seller the sum of $2000.00 as compensation for the crop loss. Buyer may also request that Sellers forego planting any crops by written request to Seller, with Buyer paying Seller $1,000.00 as compensation for the anticipated loss of profit. Any amounts paid pursuant to this paragraph shall be in addition to the purchase price stated in paragraph 1. 26. EXPIRATION. If this Agreement is not executed by Seller and Buyer on or before 5:00 P.M., CST/CDT time Oct. 23rd., 2017, this Agreement shall be null and void and shall have no force and effect and neither Seller nor Buyer shall have any further obligations hereunder. The effective date of this Agreement shall be the date upon which the later of Seller or Buyer executes this Agreement. Page 193 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 10 V5.3.3.0 27. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between Buyer and Seller regarding the Property, and supersedes all prior discussion, negotiations and agreements between Buyer and Seller, whether oral or written. Neither Buyer, Seller, nor Broker, nor any sales agent shall be bound by any understanding, agreement, promise, or representation concerning the Property, expressed or implied, not specified herein. If any clause or provision of this Agreement, or the application thereof to any entity or circumstance, is or becomes illegal, invalid or unenforceable to any extent because of present or future laws or rules or regulation of any governmental body or entity, the intention of the parties hereto is that the remaining parts of this Agreement shall not be affected thereby and that the same shall otherwise remain enforceable to the fullest extent permitted by law. This Agreement shall be construed under Iowa law, and the parties agree that any action to enforce this Agreement shall not be affected thereby and that the same shall otherwise remain enforceable to the fullest extent permitted by law. Seller(s) CITY OF WATERLOO __________________________________ By: As Its: Date: _____________________________ Buyer: THE OVERLAND GROUP, LLC _______________________________ By: Sid Aultman As Its: Member Date: ____________________ Page 194 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 11 V5.3.3.0 EXHIBIT “A” Page 195 of 297 PURCHASE AND SALE CONTRACT Buyer’s Initials ____________ Seller’s Initials____________ 12 V5.3.3.0 EXHIBIT “B” Prepared by and when recorded return to: DECLARATION OF COVENANTS AND RESTRICTIONS Date: _______________________, 2017 Owner: CITY OF WATERLOO When recorded return to: 1598 Imperial Center, Suite 2001, West Plains, MO 65775 Tract: Shall be described once there is a survey and legal description The Owner hereby declares that the Tract shall be held, sold, and conveyed subject to the following restrictions for the purpose of, among other things, insuring the quiet enjoyment of the Tract for the purpose that it is being developed and improved. 1. Benefited Parties/Binding Effect. The rights and obligations established in this Declaration of Restrictions (this “Declaration”) shall run with the land and be for the benefit of the Tract and any portion of the Tract and shall run with the land and be binding upon the Tract and any use of the Tract. 2. Business Restrictions on Tract. Owner hereby further declares that the Tract shall not be used for or used to access any business operated as the following: Family Dollar Store, Bill’s Dollar Store, Fred’s, Dollar Tree, Ninety-Nine Cents Only, Deals, Big Lots, Walgreens, CVS, Rite Aid, Wal-Mart, Wal-Mart Supercenter, Wal-Mart Neighborhood Market or any Wal-Mart retail concept, as well as any establishment selling or exhibiting paraphernalia for use with illicit drugs, any establishment selling or exhibiting materials or devices which are adjudicated to be pornographic by a court of competent jurisdiction, and any adult bookstore, adult video store or adult movie theater or a funeral parlor. 3. Enforcement. Owner acknowledges that monetary damages would be an inadequate remedy for breach of this Declaration, and that any violation of this Declaration will result in immeasurable and irreparable harm to the other party, warranting an injunction. 4. Duration. The provisions of this Declaration shall run with and bind the land described herein and shall be and remain in effect perpetually to the extent permitted by law. Page 196 of 297 C ITY OF WATER LOO Council Communication F Y 2018 Levee Tree C learing C ed ar R iver, C o ntract No. 938. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate E ngineering T horson, E ric Approved 11/1/2017 - 5:26 P M C lerk O ffice E ven, L eAnn Approved 11/1/2017 - 5:30 P M ATTA C H M EN TS : Description Type B id Tab B ackup M aterial S UB J E C T: Motio n to rec eive and file proof o f pub lic ation of notice o f pub lic hearing. HO LD HEAR ING - No comments o n file. Motio n to c lo s e hearing and rec eive and file o ral and written comments. R es o lution c o nfirming ap p ro val o f plans , s pec ificatio ns, form o f c o ntrac t, etc . R es o lution autho rizing to proc eed . Motio n to rec eive and file and ins truct C ity C lerk to read b id s and refer to C ity Engineer fo r review. S ub mitted by:S ubmitted By: Jamie Knuts o n, P E, As s oc iate Engineer Exp enditure R equired :T BD S ource o f F und s :G O Bo nds Page 197 of 297 FY18 TREE CLEARING CEDAR RIVER CONT. 938 Bid Tab: November 2, 2017 Estimate: $337,713.00 Bidder Bid Security Bid Amount Vieth Construction Cedar Falls, IA 5% 134,353.00 Hatch Grading & Contracting Dysart, IA 5% 339,703.50 J Pettiecord5%$263,241.50 Bondurant, IA Twin City Tree Service, LLC Waterloo, IA Check 5% 101566640 242,312.90 Peterson Contractors, Inc. Reinbeck, IA 5% 453,538.10 Lodge Construction, Inc. Clarksville, IA 5% 291,380.70 Page 198 of 297 C ITY OF WATER LOO Council Communication R es o lutio n approving a P ro fes s io nal S ervic es Agreement with AE C O M Tec hnic al S ervic es , Inc. for d es ign s ervic es assoc iated with the completio n o f the C ategoric al Exclus io n Amendment fo r the F Y-2018 FAA fund ed projec t at Waterloo R egional Airp o rt in the amo unt o f $31,700, and autho rize the Mayo r to execute s aid d o cument. City Council Meeting: 11/6/2017 Prepared: 10/30/2017 R EV I EWER S : D epartment R eviewer Action D ate Airport K aspari, K eith Approved 10/30/2017 - 11:14 AM C lerk O ffice E ven, L eAnn Approved 11/1/2017 - 3:53 P M ATTA C H M EN TS : Description Type Design Agreement with AE C O M for FAA G rant 46 Tree C over Memo 2018 - 2023 AC I P F inal C over Memo S UB J E C T: R es o lution approving a P ro fes s io nal S ervic es Agreement with AE C O M Tec hnical S ervic es , Inc . fo r design s ervic es as s o ciated with the completion o f the C ategoric al Exclus io n Amend ment fo r the F Y-2018 FAA funded p ro ject at Waterlo o R egio nal Airport in the amount of $31,700, and authorize the Mayor to execute s aid doc ument. S ub mitted by:S ubmitted By: Keith Kaspari, Airp o rt Direc tor R ec o mmended Ac tio n:Ap p ro ve of the above reques t b y S taff to s tart the c o mp letion of the amendment proc es s for the C AT E X (C atego rical Exc lusion). S ummary S tatement: S ee attac hed AC I P for F Y's 2018 - 2023. T his projec t is the O b s tructio n Mitigation projec t lis ted und er F Y-2018. Exp enditure R equired : T his is p art of a larger projec t fo r the comp letion of s o me obstruc tion mitigation (aka - Tree R emo val) at numerous loc ations on the airfield (centerfield and wes t o f R unway 18/36, and/o r to the north o f the airfield (north o f the approac h to R unway 18 and no rth of the approac h to R unway 12). Des ign c os ts as s oc iated with this projec t is ap p ro ximately: $31,700. S ource o f F und s :T his projec t will be fund ed via the FAA and Airp o rt's P as s enger F ac ility C harge pro gram. G oal No : 3, and S trategy No s : 3.1, 3.3, 3.4, 3.5 and 3.7 Page 199 of 297 P olic y Issue:G oal No : 4, and S trategy No : 4.5. Alternative:No alternatives were selec ted fo r this S taff reques t. Background I nformatio n: T his is the c ontinuatio n o f a p ro ject that was s tarted during late F Y-2014 / F Y-2015, and no w needs to b e brought to a c onclus io n with the formal completion of the C AT E X wo rk fo r the tree obs truc tion, mitigation and remo val in the areas no ted b elo w: 1. C enterfield and Wes t o f R unway 18/36; 2. North of the Ap p ro ach to R unway 18; and , 3. North of the Ap p ro ach to R unway 12. Legal Desc riptio ns :No t Applic able fo r this req uest by S taff. Page 200 of 297 P a g e 2 0 1 o f 2 9 7 P a g e 2 0 2 o f 2 9 7 P a g e 2 0 3 o f 2 9 7 P a g e 2 0 4 o f 2 9 7 P a g e 2 0 5 o f 2 9 7 P a g e 2 0 6 o f 2 9 7 P a g e 2 0 7 o f 2 9 7 C ITY OF WATER LOO Council Communication R es o lutio n approving C onvention and Vis ito rs Bureau Bo ard rec o mmendations for fund ing the fo llo wing hotel-mo tel mini grant applic ation for the S enior S cratch Bo wling Assoc iatio n/C ad illac XBC in the amount o f $2,231. City Council Meeting: 11/6/2017 Prepared: 10/31/2017 R EV I EWER S : D epartment R eviewer Action D ate H otel/Motel D iscretionary F unding C ommittee E ven, L eAnn Approved 10/31/2017 - 3:26 P M ATTA C H M EN TS : Description Type R ecommendation B ackup M aterial S UB J E C T: R es o lution approving C onvention and Vis ito rs Bureau Bo ard recommendatio ns fo r funding the following hotel-mo tel mini grant ap p lic ation fo r the S enio r S c ratc h Bowling As s o ciation/C adillac XB C in the amo unt of $2,231. S ub mitted by:S ubmitted By: Annette F rees eman, Waterlo o C onvention and Vis itors Bureau R ec o mmended Ac tio n:Ap p ro ve rec o mmendatio n. Page 208 of 297 Council Communication City Council Meeting: November 6, 2017 Prepared: October 19, 2017 Dept. Head Signature: Number of Attachments: 1 SUBJECT: Hotel/Motel Tax Mini -Grant Recommendation Submitted by: Annette Freeseman Recommended City Council Action: Approve Waterloo Convention & Visitors Bureau board recommendation for funding a mini -grant application by Senior Scratch Bowling Association / Cadillac XBC in the amount of $2,231. Summary Statement: The CVB Board has reviewed and scored the grant application, which covers an upcoming three-day tournament. The scored percentage was 74.36% which leads to the recommendation of $2,231 (74.35% of $3000 requested). Expenditure Required: $2,231 Source of Funds: Hotel -Motel Tax Grants Policy Issue: None Alternative: Do not fund. Background Information: This tournament has been in Waterloo for years, but without this funding they will move the tournament out of town. They have also added a singles event on Friday which should increase hotel nights. Page 209 of 297 Waterloo Hotel -Motel Tax Grant (Mini Grant) Application Waterloo Hotel -Motel Tax Year -Round (Mini) Grant Application Entire application MUST be typed and every question must be answered fully Total Request: $3000.00 Total Project Cost $20,000,00 1. Contact Information/Background Information Name & Date of Event/Project: 50/50 Singles, Team, Doubles Tournament / December 1" 2nd 3rd Name of presenting organization: Senior Scratch Bowling Association / CadillacXBC Non -Profit Organization: For -Profit Organization: Yes Check payable to (if different than above) SSBA / Cadillac XBC FEIN Number 20-4908836 Contact person Rich Eighme Address 1980 Winston Place City: Waterloo State: Iowa Zip: 50701 Phone number: 319-239-8148 Email: RnKurban@aol.com Organization web address www.lowabowl.com Please describe your organization. Include information about mission, history, staff, volunteers, etc.? Please also describe how your organization collaborates with others in the community throughout the year. We have run this annual bowling tournament for the last 20 years her in Waterloo at Cadillac Lanes. The team event of this tournament has been held on Saturday with many of the bowlers staying overnight for the Sunday doubles. This year we are adding a singles event on Friday evening which should increase the number of stayovers from Friday to Saturday then to Sunday. With singles, doubles, and team events we for the first time also be offering an All Events entry we have not been able to offer in the past. Is a member of the Waterloo City Council on your Board of Directors? NO How does your organization market to/reach an audience outside of Black Hawk County? Entry blanks are sent to each bowling center in Iowa and surrounding states that have participated in the past tournaments, as well as through the GIBA (Greater Iowa Bowling Association) and the SSBA (Senior Scratch Bowling Association) Have hotel -motel tax grants been received for this project previously? YES If so, please provide a copy of the completed project evaluation form(s) that were turned in for reimbursement. If so, please provide an explanation for why you are applying outside of the regular grant cycle. Please provide IRS documentation and Board/Management information. Proof of Liability Insurance for the project/event will be required prior to the event taking place. 4 Page 210 of 297 Waterloo Hotel -Motel Tax Grant (Mini Grant) Application 2. Please share the following information about your project/event: a. Please describe the project and specify the goals/expectations. b. Please describe the mechanism for measuring to see if expectations are met. 3. Based on past history of this event (in Waterloo and/or in other communities) please provide as much specific information as you can about attendance and hotel use. a. How many people do you expect to attend? 240+ Of those, how many will be from outside Black Hawk County? 85% b. What method was used to determine this information? Collecting data from previous years tournaments c. What will be the mechanism for tracking/measuring attendance? Asking the bowlers to 011 out a survey upon checking in to the tournament. How are you adjusting it from the prior year? We will try to get a larger percentage of bowlers to take part in the survey. d. What are your expectations for hotel room use in Waterloo? 100+ rooms e. How will you track room use? Survey f. Do you have room blocks? Rates? Not as of yet. We are seeking a host Hotel. g. When are rooms typically booked? A few weeks prior to the event h. How long will people stay? Duration of the tournament i. How many people stay in a room? 2-3 j. Please include event attendance and hotel use history if applicable. Where has the event been held before? Waterloo Only How many participants/spectators were involved previously? Estimated at 50+ k. For profit entities only: Please describe how this project is different from your normal business and how this ties into your normal business. This tournament draws a far larger percentage of out of town and out of state bowlers then normal local tournaments. How is this project tourism -related? As many of the bowlers travel with family, many of whom seek out other things to do while the tournament is going on as well as after. How much does this grant funding mean to the success of your event? Part of what drives this tournament is the added prize money it offers. What are your expectations for attendance with and without grant funding? 175+ 1. For event -related capital projects only: Please describe how this ties into your organization's mission, and how the project allows you to draw additional people to Waterloo, 4. Is this a new project or idea? YES & NO If yes, please describe, in detail, how this project explores a new idea, new direction, is innovative or a new project? Yes — The Friday singles is new NO — The Saturday Team and Sunday Doubles is not 5. Are there significant changes to the event/application from previous years? NO If yes, please describe, in detail, those changes. Examples could include changes in marketing efforts, expansion of the event schedule, etc. 6. How does your event/project strengthen Waterloo and/or the perception of Waterloo? Waterloo and this tournament is one of the, if not largest anticipated bowling tournaments in the state. Entries fill up for the Sunday doubles event more than a month in advance with pre -paid entries. Since there is a maximum number of entries due to the limited number of lanes CadillacXBC have to offer. There always are several entries on a waiting list. 7. What specific marketing will you be doing outside of Black Hawk County for this event/project? Please specify locations, audience size, etc. Please provide information about specific media, schedule, costs, etc. mailing entry blanks and marketing through bowling websites and other Internet sites such as Facebook 5 Page 211 of 297 Waterloo Hotel -Motel Tax Grant (Mini Grant) Application 8. Please fill out the attached budget information (attached Excel file), and provide the following budget snapshot. Budget information should be as complete as possible. Based on last year 2016 a. Total Income: $17579.00 b. Total Expense: $17579.00 c. Net Profit (Loss) for the event: $0 d. Please describe how the requested grant money fits into the overall project. How will the funds be used, and how would not receiving full funding through this process affect your event? Grant money be used for added prize money for the 4 events of the tournament weekend. e. How will profit (if applicable) be used by the project/organization/business? Event prize money Additional Information Are there additional details that should be known by the CVB Board of Directors or Waterloo City Council? Acknowledgment and Signature I have reviewed this Application for Grant Funds from the City al Waterloo and Waterloo Convention and Visitors Bureau, To the best ohm; knowledge, the information contained in this application and its attachments is accurate and complete. The Hotel -Motel Tax Grant funds ore reimbursement funds for project funding already spent, and are to be used for the express purpose os stated in the Grant Application. 1, the undersigned, know full and well that If this program/project does not transpire, recommendation by the Waterloo Convention and Visitors Bureau Board of Directors farjunding will be withdrawn. My organization will be responsible for refunding any portion of grant funds already received or for covering the costs for portions of the project that ore non -fundable or not stated herein. Rich Eighme 10/3/2017 Signature of Applicant Date 6 Page 212 of 297 C ITY OF WATER LOO Council Communication R es o lutio n approving the contrac t with Tys on F res h Meats, Inc . o f Waterlo o , Iowa, and the Io wa Economic Development Authority fo r High Q uality Job s P rogram-Tax C redit C ompo nent Incentives , and authorize the Mayo r and C ity C lerk to execute s aid doc ument. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate P lanning & Z oning S chroeder, Aric Approved 11/1/2017 - 10:06 AM C lerk O ffice E ven, L eAnn Approved 11/1/2017 - 4:31 P M ATTA C H M EN TS : Description Type I E D A Tyson C ontract B ackup M aterial S UB J E C T: R es o lution approving the contrac t with Tys on F res h Meats, Inc . o f Waterlo o , I o wa, and the Iowa Ec o nomic Development Autho rity for High Q uality Job s P rogram-Tax C redit C ompo nent Incentives , and authorize the Mayo r and C ity C lerk to execute s aid do c ument. S ub mitted by:S ubmitted By: No el Anderson, C o mmunity P lanning & Develo p ment Directo r R ec o mmended Ac tio n:Ad o p t a res o lutio n to ap p ro ve the c o ntrac t. S ummary S tatement: T he High Q uality Jo b s program provid es q ualifying bus inesses tax c redits and d irect financ ial as s is tance to o ff-s et s ome o f the costs incurred to lo c ate, expand or modernize an Io wa facility. To qualify fo r this very flexib le as s is tance pac kage that includ es loans , forgivable lo ans, tax credits , exemptio ns and / o r refunds, eligib le bus ines s es mus t meet certain wage thres hold requirements . Vis it wage requirements to view the req uirements fo r wage thres ho ld s . Exp enditure R equired :N/A S ource o f F und s :Ind ustrial P ro p erty Tax Exemptio n P olic y Issue:P o licies 1, 3, and 4 in the S trategic P lan d ealing with Ec o nomic Development. Alternative:NA Eligibility R equirements : A bus ines s must meet wage thres ho ld s requirements . Actual award amounts will be b as ed o n the bus iness's level o f need; Page 213 of 297 Background I nformatio n: the q uality o f the jo b s ; the perc entage of created or retained jobs d efined as high-quality; and the ec ono mic imp act of the projec t. C reated jobs must pay at least 100 p erc ent o f the q ualifying wage thres ho ld at the s tart of the projec t and 120 perc ent of the qualifying wage thres hold b y p ro ject c o mp letio n and thro ugh the projec t maintenanc e period unles s in a d is tres s ed area. R etained jo b s mus t p ay at leas t 120 perc ent of the qualifying wage thres ho ld througho ut the p ro ject c ompletio n and maintenance p eriods . T he b us ines s mus t p ro vide a suffic ient benefits p ackage to all full time employees that includ es at least one o f the fo llo wing: Bus ines s pays 80 p ercent of med ical and d ental premiums fo r s ingle coverage p lans, O R Bus ines s pays 50 p ercent of med ical and d ental premiums fo r family c o verage plans , O R Bus ines s pays for s o me level o f medic al and dental coverage and provid es the mo netary equivalent value through other employee benefits. Tax Inc entives : T he S tate's refundable res earch ac tivities c red it may b e increased while the bus iness is participating in the program. A loc al property tax exemp tion of up to 100 perc ent of the value ad ded to the property to a period no t to exc eed 20 years may b e availab le. An inves tment tax credit equal to a perc entage o f the q ualifying inves tment, amo rtized o ver five years . T his tax credit is earned when the c orres pond ing asset is p laced in s ervice and can be carried fo rward for up to s even additio nal years or until d ep leted, whic hever o cc urs firs t. A refund o f s tate s ales , s ervic e or us e taxes p aid to c o ntracto rs o r s ubc ontrac tors d uring cons truction. F or d is tribution c enter projec ts, a refund o f s ales and use taxes p aid o n rac ks , s helving, and c o nveyor equip ment. To as s ure yo ur ad d ition/exp ansion c an benefit fro m this p ro gram, b usines s es must apply prior to the b eginning o f the p ro ject. Legal Desc riptio ns :NA Page 214 of 297 ECONOMIC DEVELOPMENT ASSISTANCE CONTRACT BY TYSON FRESH MEATS, INC., THE CITY OF WATERLOO, AND THE IOWA ECONOMIC DEVELOPMENT AUTHORITY CONTRACT NUMBER: 18-TC-018 Page 215 of 297 Contract # 18-TC-018 - 2 - Fmt Approved 12/2014 TABLE OF CONTENTS ARTICLE 1: CONTRACT DURATION ARTICLE 2: DEFINITIONS ARTICLE 3: AWARD TERMS ARTICLE 4: CONDITIONS TO DISBURSEMENT OF FUNDS AND ISSUANCE OF TAX CREDIT NUMBER; DISBURSEMENT TERMS ARTICLE 5: SECURITY REQUIREMENTS ARTICLE 6: REPRESENTATIONS AND WARRANTIES ARTICLE 7: COVENANTS OF THE RECIPIENT ARTICLE 8: COVENANTS OF THE COMMUNITY ARTICLE 9: EVENTS OF DEFAULT; NOTICE AND OPPORTUNITY TO CURE; AND REMEDIES AVAILABLE TO IEDA ARTICLE 10: MISCELLANEOUS CONTRACT EXHIBITS Exhibit A - Recipient’s Financial Assistance Application (on file with IEDA), Application # 18-HQJTC-018 Exhibit B-1 High Quality Jobs Program - Tax Credit Special Conditions Conditions Exhibit C - Description of the Project and Award Budget Exhibit D - Job Obligations Exhibit E - Reserved Exhibit F - Reserved Page 216 of 297 Contract # 18-TC-018 - 3 - Fmt Approved 12/2014 Economic Development Assistance Contract RECIPIENT: TYSON FRESH MEATS, INC. COMMUNITY: CITY OF WATERLOO CONTRACT NUMBER: 18-TC-018 AWARD DATE: SEPTEMBER 22, 2017 AWARD AMT. – TAX INCENTIVES $2,396,535 This ECONOMIC DEVELOPMENT ASSISTANCE CONTRACT (Contract) is made as of the Contract Effective Date by the Iowa Economic Development Authority (IEDA or Authority), 200 East Grand Avenue, Des Moines, IA 50309, and Tyson Fresh Meats, Inc. (Recipient), 2200 Don Tyson Parkway (CP131), Springdale, AR 72762 and the City of Waterloo (Community), 715 Mulberry St., Waterloo, IA 50703. WHEREAS, the Recipient submitted an application to IEDA requesting assistance in financing its Project as more fully described in Exhibit C, Description of the Project and Award Budget (the Project); and WHEREAS, the Iowa Economic Development Authority Board (IEDA Board) awarded the Recipient assistance for the Project from the funding sources identified herein (collectively, the Award), all of which are subject to the terms and conditions set forth herein; and NOW THEREFORE, in consideration of the mutual promises contained herein and intending to be legally bound, the Recipient, the Community and IEDA agree to the following terms: Page 217 of 297 Contract # 18-TC-018 - 4 - Fmt Approved 12/2014 ARTICLE 1: CONTRACT DURATION This Contract shall be in effect on the Contract Effective Date and shall remain in effect until after completion of each of the following: (a) Through Project Completion Date. Through the Project Completion Period and for a reasonable period of time after Project Completion Date during which IEDA will conduct Project closeout procedures to verify that the Project was completed in compliance with Contract requirements. (b) Through Maintenance Period Completion Date and Contract Closeout. Through the Maintenance Period Completion Date and for a reasonable period of time after Maintenance Period Completion Date during which IEDA will conduct closeout procedures to verify that the Project was maintained in compliance with Contract requirements. (c) Repayment or Payment Obligation. Until all outstanding amounts due to IEDA, if any, are received by IEDA or all outstanding obligations to IEDA are satisfied in full. (d) Contract End Date. Until IEDA has completed Contract closeout procedures and provided Recipient and Community with written Notice of Final Contract Closeout. This Contract shall terminate as of the date stated in the written Notice of Final Contract Closeout. Such date shall be the Contract End Date. ARTICLE 2: DEFINITIONS The following terms apply to this Contract: “Affiliate” means any entity to which any of the following applies: a. Directly, indirectly, or constructively controls another entity. b. Is directly, indirectly or constructively controlled by another entity. c. Is subject to the control of a common entity. A common entity is one which owns directly or individually more than ten percent of the voting securities of the entity. “Award” means any and all assistance provided by IEDA for the Project under this Contract. “Award Date” means the date first stated in this Contract and is the date the IEDA Board approved the award of financial assistance to the Recipient for the Project. “Award Funds” means the cash that is provided by IEDA for this Project as Project Completion Assistance, including loans. “Base Employment Level” means the number of Full-Time Equivalent positions as established by IEDA and Recipient using Recipient’s payroll records, as of the date Recipient applied for Tax Incentives or Project Completion Assistance. The number of jobs Recipient has pledged to create and retain shall be in addition to the Base Employment Level. “Benefits” means nonwage compensation provided to an employee. Benefits include medical and dental insurance plans, pension, retirement, and profit-sharing plans, child care services, life insurance coverage, vision insurance coverage, and disability insurance coverage. “Brownfield site” means an abandoned, idled, or underutilized property where expansion or redevelopment is complicated by real or perceived environmental contamination. A brownfield site includes property contiguous with the site on which the property is located. A brownfield site does not include property which has been placed, or is proposed for placement, on the national priorities list established Page 218 of 297 Contract # 18-TC-018 - 5 - Fmt Approved 12/2014 pursuant to the federal Comprehensive Environmental Response, Compensation, and Liability Act, 42, U.S.C. 9601 et seq. In order to administer similar programs in a similar manner, the IEDA will attempt to apply this definition in substantially the same way as similar definitions are applied by the Brownfield Advisory Council established in Iowa code section 15.294 and may consult members of the council or other staff as necessary. “Contract Effective Date” means the latest date on the signature page of this Contract. “Contract End Date” means the date stated in the Notice of Final Contract Closeout issued by IEDA pursuant to Article 1. “Created Job” means a new, permanent, Full-Time Equivalent (FTE) position added to Recipient’s payroll in excess of the Base Employment Level at the time of application for Tax Incentives or Project Completion Assistance. “Full-Time Equivalent job,””FTE,” or “full-time” means the employment of one person: 1. For 8 hours per day for a 5-day, 40-hour workweek for 52 weeks per year, including paid holidays, vacations and other paid leave; or 2. The number of hours or days per week, including paid holidays, vacations and other paid leave, currently established by schedule, custom, or otherwise, as constituting a week of full-time work for the kind of service an individual performs for an employing unit, provided that the number of hours per week is at least 32 hours per week for 52 weeks per year including paid holidays, vacations, and other paid leave. For purposes of this definition, “employment of one person” means the employment of one natural person and does not include “job sharing” or any other means of aggregation or combination of hours worked by more than one natural person. “Grayfield site” means a property meeting all of the following requirements: a. The property has been developed and has infrastructure in place, but the property’s current use is outdated or prevents a better or more efficient use of the property. Such property includes vacant, blighted, obsolete, or otherwise underutilized property. b. The property’s improvements and infrastructure are at least twenty-five years old and one or more of the following conditions exists: (1) Thirty percent or more of a building located on the property that is available for occupancy has been vacant or unoccupied for a period of twelve months or more. (2) The assessed value of the improvements on the property has decreased by twenty-five percent or more. (3) The property is currently being used as a parking lot. (4) The improvements on the property no longer exist. c. The Authority will attempt to apply this definition in substantially the same manner as similar definitions are applied by the Brownfield Advisory Council established in Iowa code section 15.294. “Job Obligations” means the jobs that must be created or retained as a result of receipt of state or federal financial assistance, Project Completion Assistance, or Tax Incentives from IEDA and that are required to meet the Qualifying Wage Threshold requirements. Recipient’s Job Obligations are specified in Exhibit D of this Contract. Jobs that do not meet the Qualifying Wage Threshold requirements shall not be counted toward Recipient’s job creation or job retention obligations contained in Exhibit D. The Job Obligations in Exhibit D include Recipient’s Base Employment Level and the number of new jobs required to be created above the Base Employment Level. “Laborshed Wage” means the Qualifying Wage Threshold applicable to Recipient’s Project as calculated pursuant to rule 261 IAC 173.2 and 261 IAC chapter 174 and as specified in Exhibit D of this Contract. Page 219 of 297 Contract # 18-TC-018 - 6 - Fmt Approved 12/2014 “Loan” means an Award of assistance with the requirement that the Award be repaid with term, interest rate, and other conditions specified as part of the conditions of the Award. “Loan” includes deferred loans, forgivable loans, and float loans. A “deferred loan” is one for which the payment for principal, interest, or both, is not required for some specified period. A “forgivable loan” is one for which repayment is eliminated in part or entirely if the borrower satisfies specified conditions. A “float loan” means a short-term loan, not to exceed 30 months, made from obligated but unexpended moneys. “Maintenance Period” means the period of time between the Project Completion Date and the Maintenance Period Completion Date. The Project must be maintained in Iowa for this period of time. “Maintenance Period Completion Date” means the date on which the Maintenance Period ends. The specific date on which the Maintenance Period ends is identified in Exhibit D. “Person” means as defined in Article 6.1(g) of this Contract. “Project” means the description of the work and activities to be completed by the Recipient as outlined in Exhibit C - Description of the Project and Award Budget. “Project Completion Assistance” means financial assistance or technical assistance provided to an eligible business in order to facilitate the start-up, location, modernization, or expansion of the business in this state and provided in an expedient manner to ensure the successful completion of the start-up location, modernization, or expansion project. “Project Completion Date” means the date by which the Recipient of incentives or assistance has agreed to meet all the terms and obligations contained in this Contract. The Project Completion Date will be a date by which the project must be completed, all incented jobs must be created or retained, and all other applicable requirements must be met. The specific date on which the project completion period ends is identified in Exhibit D. “Project Completion Period” means the period of time between the Award Date and the Project Completion Date. “Qualifying Jobs” are those Created or Retained Jobs that meet or exceed the Qualifying Wage Threshold Requirement established to qualify for program funding for the programs providing assistance to this Project. “Qualifying Wage Threshold” means the Laborshed Wage as calculated by IEDA pursuant to statute and rule for each program under which financial assistance or Tax Incentives for this Project are awarded. The Qualifying Wage Threshold Requirement for this Project is outlined in Exhibit D, Job Obligations. “Recipient’s Employment Base” means the number of jobs as stated in Exhibit D – Job Obligations that the Recipient and IEDA have established as the Base Employment Level for this Project. The number of jobs the Recipient has pledged to create shall be in addition to the Recipient’s Employment Base. “Retained Job” means an existing job that meets the Qualifying Wage Threshold Requirements and would be eliminated or moved to another state if the Project did not proceed in Iowa. “Sufficient Benefits” means that Recipient offers to each Full-Time Equivalent permanent position a benefits package that meets one of the following: 1. Recipient pays 80 percent of the premium costs for a standard medical plan for single employee coverage with the maximum deductible specified for this project in Exhibit D; or Page 220 of 297 Contract # 18-TC-018 - 7 - Fmt Approved 12/2014 2. Recipient pays 50 percent of the premium costs for a standard medical plan for employee family coverage with the maximum deductible specified for this project in Exhibit D; or 3. Recipient provides medical coverage and pays the monetary equivalent of paragraph “1” or “2” above in supplemental employee benefits. Benefits counted toward monetary equivalent could include medical coverage, dental coverage, vision insurance, life insurance, pension, retirement, 401k, profit sharing, disability insurance, and child care services. “Tax Incentives” means the tax credits, refunds, or exemptions IEDA has awarded for this Project as detailed in Article 3. “Total Project Cost” means the cost incurred by the Recipient to complete the Project as described in Exhibit C. ARTICLE 3: AWARD TERMS 3.1 Total Award Amount. The IEDA Board has approved an Award to the Community and Recipient from the funding sources and in the maximum amounts shown below: TAX INCENTIVES FORM MAXIMUM AMOUNT High Quality Jobs Program Tax Incentives $ 2,396,535 TOTAL STATE TAX INCENTIVES: $ 2,396,535 3.2 Terms and Conditions of Award. The terms and conditions of the Award shall be as described in this Contract and the following incorporated exhibit(s): Exhibit B-1 High Quality Jobs Program – Tax Credit Component Special Conditions ARTICLE 4: CONDITIONS TO AWARD; DISBURSEMENT AND ISSUANCE TERMS 4.1 Direct State Financial Assistance – Disbursements of Award Funds. (a) Conditions to Disbursement. The obligation of IEDA to disburse funds under this Contract shall be subject to the conditions described in this Article 4. (b) Process to Request Disbursement of Award Funds. Recipient shall prepare, sign and submit disbursement requests and reports as specified in this Contract in the form and content required by IEDA. Recipient shall verify that claimed expenditures are allowable costs. The Recipient shall maintain documentation adequate to support the claimed costs. (c) Documents Submitted. Funds will not be disbursed until IEDA has received the documents described in section 4.3 below as well as the following additional documents, properly executed and completed and approved by IEDA as to form and substance: 1. Security Documents. The fully executed Security Documents required in Article 5. 2. Promissory Note(s). The Promissory Note(s) required and described in the exhibit(s). Page 221 of 297 Contract # 18-TC-018 - 8 - Fmt Approved 12/2014 3. Requests for Disbursement. All disbursements of Award Funds shall be subject to receipt by the IEDA of requests for disbursement, in form and content acceptable to IEDA, submitted by the Recipient. All requests shall include documentation of costs that have been paid or costs to be paid immediately upon receipt of Award proceeds. (d) Prior Costs. No expenditures made prior to the Award Date may be included as Project costs. No funds will be disbursed for expenditures prior to the Award Date. (e) Cost Variation. In the event that the actual cost of the Project is less than the Total Project Cost specified in Exhibit C, the Award Funds specified in Article 3.1 shall be reduced at the same ratio as the reduction in the actual cost of the Project bears to the Total Project Cost specified in Exhibit B. Any funds previously disbursed by IEDA in excess of the reduced Award Funds to be provided by IEDA shall be returned to IEDA immediately upon receipt by Recipient of a written request by IEDA for repayment. (f) Investment of Award Funds. 1. In the event that the Award Funds are not immediately utilized, temporarily idle Award Funds held by the Recipient may be invested, provided that such investments shall be in accordance with State law, including but not limited to the provisions of Iowa Code chapter 12C concerning the deposit of public funds. Interest accrued on temporarily idle Award Funds held by the Recipient shall be credited to and expended on the Project prior to the expenditure of other Award Funds. 2. Within ten (10) days of receipt of a written request from IEDA, Recipient shall inform IEDA in writing of the amount of unexpended Award Funds in the Recipient's possession or under the Recipient's control, whether in the form of cash on hand, investments, or otherwise. Recipient shall return to IEDA all unexpended Award Funds remaining, including accrued interest, after all allowable Project costs have been paid or obligated within thirty (30) days after the Project Completion Date. 4.2 Tax Incentives–Conditions to Issuance of Tax Credit Number. (a) Tax Credit Number Required to Claim Incentives. Recipient shall not claim the Tax Incentives described in Article 3 until IEDA has issued a tax credit number for this Project and Recipient has undertaken the activities described in this Contract and the applicable law to be eligible for such Tax Incentives. (b) Issuance of Tax Credit Number. Upon satisfaction of the conditions described herein, IEDA will issue a tax credit number to the Recipient for this Project. The tax credit number shall be used in preparing any claims for Tax Incentives. (c) Conditions to Issuance of Tax Credit Number. The obligation of IEDA to issue a tax credit number shall be subject to the conditions precedent described in Article 4. (d) Documents Submitted. IEDA shall have received the documents described in section 4.3, properly executed and completed, and approved by IEDA as to form and substance, prior to issuing any tax credit number. 4.3 Documents required. (a) Contract. Fully executed Contract. (b) Incorporation Documents. Copies of the Articles of Incorporation or the Articles of Organization, whichever is appropriate, of the Recipient, certified in each instance by its secretary or assistant secretary. Page 222 of 297 Contract # 18-TC-018 - 9 - Fmt Approved 12/2014 (c) Certificate of Existence; Certificate of Authority. A certificate of existence for the Recipient from the State of incorporation or organization, whichever is appropriate, and a certificate of authority authorizing the Recipient to conduct business in the state of Iowa, if it is not organized or incorporated in Iowa. (d) Results of Lien and Tax Search and Documentation of Satisfactory Credit History. Financing statement, tax and judgment lien search results, in the Recipient’s state of incorporation or organization, against the Recipient and/or the property serving as the Recipient’s security under this Contract, and documentation of satisfactory credit history of the Recipient and guarantors, as applicable, with no judgments or unsatisfied liens or similar adverse credit actions. (e) Other Required Documents. Such other contracts, instruments, documents, certificates and opinions as IEDA may reasonably request. (f) Solid or Hazardous Waste Audit. To comply with Iowa Code section 15A.1(3)”b,” if the Recipient generates solid or hazardous waste, it must either: a) submit a copy of the Recipient’s existing in-house plan to reduce the amount of waste and safely dispose of the waste based on an in-house audit conducted within the past 3 years; or b) submit an outline of a plan to be developed in-house; or c) submit documentation that the Recipient has authorized the Iowa Department of Natural Resources or Iowa Waste Reduction Center to conduct the audit. (g) Release Form – Confidential Tax Information. A signed Authorization for Release of Confidential State Tax Information form to permit IEDA to receive the Recipient’s state tax information directly from the Iowa Department of Revenue for the purpose of evaluation and administration of Tax Incentives and other state financial assistance programs. (h) Project Financial Commitments. The Recipient shall have submitted documentation acceptable to IEDA from the funding sources identified in Exhibit A committing to the specified financial involvement in the Project and received the IEDA's approval of the documentation. The documentation shall include the amount, terms and conditions of the financial commitment, as well as any applicable schedules and may include agreements and resolutions to that effect. (i) State Building Code Bureau Approval. If any part of the Award proceeds will be used for the construction of new buildings and if any of the following applies: 1. The building or structure is located in a governmental subdivision which has not adopted a local building code; or 2. The building or structure is located in a governmental subdivision which has adopted a building code, but the building code is not enforced; or 3. Bidding for construction shall not be conducted prior to obtaining written approval of the final plans by the State Building Code Bureau of the Iowa Department of Public Safety. 4.4 Suspension, Reduction or Delay of Award. Any one or more of the following shall be grounds for IEDA to suspend, delay or reduce the amount of disbursement of Award Funds or delay the issuance of a tax credit number or receipt of Tax Incentives: (a) Unremedied event of default. Upon the occurrence of an Event of Default, as defined in this Contract, by the Recipient, IEDA may suspend payment or issuance of the Award to the Recipient until such time as the default has been cured. (b) Layoff, closure or relocation. In the event the Recipient experiences a layoff within the state of Iowa, relocates or closes any of its Iowa facilities IEDA has the discretion to reduce or eliminate some or Page 223 of 297 Contract # 18-TC-018 - 10 - Fmt Approved 12/2014 all of the Award. (c) Reduction, discontinuance or alteration of state funding/programs. Any termination, reduction, or delay of funds or Tax Incentives available due, in whole or in part, to (i) lack of, reduction in, or a deappropriation of revenues or Tax Incentives previously appropriated or authorized for this Contract, or (ii) any other reason beyond the IEDA’s control may, in the IEDA’s discretion, result in the suspension, reduction or delay of Award Fund or authorization or issuance of Tax Incentives to the Recipient. 4.5 Closing Cost Fee. Upon execution of the contract and prior to the issuance of a tax credit number or the disbursement of Award Funds, an eligible business shall remit to the Authority a one-time compliance cost fee in the amount of $500. ARTICLE 5: RESERVED. ARTICLE 6: REPRESENTATIONS AND WARRANTIES 6.1 Representations of Recipient. The Recipient represents and warrants to IEDA as follows: (a) Organization and Qualifications. The Recipient is duly organized, validly existing and in good standing under the state of its incorporation or organization, whichever is appropriate, and is authorized to conduct business in the state of Iowa. The Recipient has full and adequate power to own its property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the property owned or leased by it requires such licensing or qualifying, except where the failure to so qualify would not have a material adverse effect on the Recipient’s ability to perform its obligations hereunder. (b) Authority and Validity of Obligations. The Recipient has full right and authority to enter into this Contract. The person signing this Contract has full authority on behalf of Recipient to execute this Contract and issue, execute or otherwise secure or deliver any documents or obligations required under this Contract on behalf of the Recipient, and to perform, or cause to be performed, each and all of the obligations under the Contract. The Contract delivered by the Recipient has been duly authorized, executed and delivered by the Recipient and constitutes the valid and binding obligations of the Recipient and is enforceable against it in accordance with its terms. This Contract and related documents do not contravene any provision of law or any judgment, injunction, order, or decree binding upon the Recipient or any provision of the corporate governance documents of the Recipient, nor does this Contract contravene or constitute a default under any covenant, indenture or contract of or affecting the Recipient or any of its properties. (c) Affiliates. The Recipient has no Affiliates involved with the Project on the Contract Effective Date. (d) Financial Reports. The consolidated balance sheet of Tyson Foods, Inc. and Subsidiaries, which includes the Recipient, furnished to IEDA fairly presents its financial condition as of said date and is in conformity with Generally Accepted Accounting Principles (GAAP) applied on a consistent basis. The Recipient has no contingent liabilities which are material to it, other than as indicated on such financial statements or, with respect to future periods, on the financial statements furnished to IEDA. (e) No Material Adverse Change. Since the Award Date, there has been no change or the Recipient foresees no change in the condition (financial or otherwise) of the Recipient or the prospects of the Recipient, except those occurring in the ordinary course of business, none of which individually or in the Page 224 of 297 Contract # 18-TC-018 - 11 - Fmt Approved 12/2014 aggregate has been materially adverse. To the knowledge of the Recipient, there has been no material adverse change in the condition of the Recipient, financial or otherwise, or the prospects of the Recipient. (f) Full Disclosure; Recipient’s Financial Assistance Application. The statements and other information furnished to the IEDA by Recipient in its Financial Assistance Application and in connection with the negotiation of this Contract do not contain any untrue statements of a material fact or omit a material fact necessary to make the material statements contained herein or therein not misleading. The IEDA acknowledges that, as to any projections furnished to the IEDA, the Recipient only represents that the same were prepared on the basis of information and estimates it believed to be reasonable. (g) Trademarks, Franchises and Licenses. To the best of its knowledge, the Recipient owns, possesses, or has the right to use all necessary patents, licenses, franchises, trademarks, trade names, trade styles, copyrights, trade secrets, knowhow and confidential commercial and proprietary information to conduct its business as now conducted, without a known material conflict with any patent, license, franchise, trademark, trade name, trade style, copyright or other proprietary right of any other Person. As used in this Contract, “Person” means an individual, partnership, corporation, association, trust, unincorporated organization or any other entity or organization, including a government or agency or political subdivision thereof. (h) Governmental Authority and Licensing. The Recipient has received all licenses, permits, and approvals of all Federal, state, local, and foreign governmental authorities, if any, necessary to conduct its business, in each case where the failure to obtain or maintain the same could reasonably be expected to have a material adverse effect. No investigation or proceeding which, if adversely determined, could reasonably be expected to result in revocation or denial of any material license, permit, or approval is pending or, to the knowledge of the Recipient, threatened. (i) Litigation and Other Controversies. There is no litigation or governmental proceeding pending, nor to the knowledge of the Recipient, threatened, against the Recipient which, if adversely determined would result in any material adverse change in the financial condition, properties, business or operations of the Recipient, nor is the Recipient aware of any existing basis for any such litigation or governmental proceeding. (j) Good Title. The Recipient has good and defensible title to or valid leasehold interests in all of its property involved with the Project including, without limitation, the Secured Property if real property is a security for this Contract reflected on the most recent balance sheets furnished to the IEDA, except for sales of assets in the ordinary course of business. (k) Taxes. All tax returns the Recipient is required to file in any jurisdiction have, in fact, been filed, and all taxes, assessments, fees and other governmental charges upon the Recipient or upon any of its property, income or franchises, which are shown to be due and payable in such returns, have been paid, except such taxes, assessments, fees and governmental charges, if any, which are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and as to which adequate reserves established in accordance with GAAP have been provided. The Recipient knows of no proposed additional tax assessment against it for which adequate provisions in accordance with GAAP have not been made on its accounts. Adequate provisions in accordance with GAAP for taxes on the books of the Recipient have been made for all open years, and for their current fiscal period. (l) Other Contracts. The Recipient is not in default under the terms or any covenant, indenture or contract of or affecting the Recipient’s business or any of its properties, which default, if uncured, would have a material adverse effect on its financial condition, properties, business or operations. (m) No Event of Default. No Event of Default, as defined in Article 9, has occurred or is continuing. (n) Compliance with Laws. The Recipient is in compliance with the requirements of all federal, state and local laws, rules and regulations applicable to or pertaining to the business operations of the Recipient and laws and regulations establishing quality criteria and standards for air, water, land and toxic or hazardous Page 225 of 297 Contract # 18-TC-018 - 12 - Fmt Approved 12/2014 wastes or substances, non-compliance with which could have a material adverse effect on the financial condition, properties, business or operations of the Recipient. Other than what was disclosed in the Affidavit submitted as an attachment to the Financial Assistance Application, the Recipient has not received notice that its operations are not in compliance with any of the requirements of applicable federal, state or local environmental or health and safety statutes and regulations or are the subject of any governmental investigation evaluating whether any remedial action is needed to respond to a release of any toxic or hazardous waste or substance into the environment, which non-compliance or remedial action could have a material adverse effect on the financial condition, properties, business or operations of the Recipient. (o) Effective Date of Representations and Warranties. The warranties and representations of this Article are made as of the Contract Effective Date and shall be deemed to be renewed and restated by the Recipient at the time each request for disbursement of Award Funds is submitted to IEDA or each time Tax Incentives are claimed by the Recipient. 6.2 Representations of Community. (a) Local Approvals Received; Authority and Validity of Obligations. The Community has secured all necessary local approvals and has full right and authority to enter into this Contract. The person signing this Contract has full authority on behalf of the Community to: 1. Sign this Contract, and 2. Perform each and all of the Community’s obligations under this Contract. The Contract delivered by the Community has been duly authorized, executed and delivered by the Community and constitutes the valid and binding obligations of the Community and is enforceable against it in accordance with its terms. This Contract and related documents do not contravene any provision of law or any judgment, injunction, order or decree binding upon the Community or contravene or constitute a default under any covenant, indenture or contract of or affecting the Community or any of its properties. (b) Local Commitment. The Community represents that there are legally enforceable commitments in place for the Community local commitment identified for the Project in Exhibit C -Description of the Project and Award Budget. (c) No Material Adverse Change. Since the Award Date, there has been no material adverse change in the Community’s ability to perform its obligations under this Contract. (d) Full Disclosure; Community’s Financial Assistance Application. The statements and other information furnished to the IEDA by the Community in the Financial Assistance Application and in connection with the negotiation of this Contract do not contain any untrue statements of a material fact or omit a material fact necessary to make the material statements contained herein or therein not misleading. The IEDA acknowledges that, as to any projections furnished to the IEDA, the Community only represents that the same were prepared on the basis of information and estimates it believed to be reasonable. (e) Governmental Authority and Licensing. The Community has received all licenses, permits, and approvals of all federal, state, local, and foreign governmental authorities, if any, necessary to perform its obligations under this Contract. No investigation or proceeding which, if adversely determined, could reasonably be expected to result in revocation or denial of any material license, permit, or approval is pending or, to the knowledge of the Community, threatened. (f) Litigation and Other Controversies. There is no litigation or governmental proceeding pending, nor to the knowledge of the Community, threatened, against the Community which, if adversely determined would result in any material adverse change in the Community’s ability to perform under this Contract, nor is the Community aware of any existing basis for any such litigation or governmental proceeding. Page 226 of 297 Contract # 18-TC-018 - 13 - Fmt Approved 12/2014 (g) No Event of Default. No Event of Default by the Community, as defined in Article 9, has occurred or is continuing. (h) Compliance with Laws. The Community is in compliance with the requirements of all federal, state and local laws, rules and regulations applicable to or pertaining to the operations of the Community and laws and regulations establishing quality criteria and standards for air, water, land and toxic or hazardous wastes or substances, non-compliance with which could have a material adverse effect on the financial condition, properties, business or operations of the Community in relation to the Community’s ability to perform its obligations under this contract. The Community has not received notice that its operations are not in compliance with any of the requirements of applicable federal, state or local environmental or health and safety statutes and regulations or are the subject of any governmental investigation evaluating whether any remedial action is needed to respond to a release of any toxic or hazardous waste or substance into the environment, which non-compliance or remedial action could have a material adverse effect on the financial condition, properties, business or operations of the Community in relation to the Community’s ability to perform its obligations under this contract. (i) Effective Date of Representations and Warranties. The warranties and representations of this Article are made as of the Contract Effective Date. ARTICLE 7: COVENANTS OF THE RECIPIENT For the duration of this Contract, the Recipient covenants to IEDA as follows: 7.1 Project Performance Obligations. (a) Use Award Funds only for Project. The Recipient shall use the Award Funds only for the Project and for the activities described in Exhibit C -Description of the Project and Award Budget and this Contract. Use of the Award Funds shall conform to the Budget for the Project as detailed in Exhibit C -Description of the Project and Award Budget. The Recipient represents that there are legally enforceable commitments in place from the funding sources identified for the Project in Exhibit C -Description of the Project and Award Budget. (b) Meet and Maintain Eligibility Requirements. Recipient shall continue to meet and maintain all statutory eligibility requirements for the funding sources providing assistance under this Contract. (c) Project Time Period. This Contract covers the Project time period from the Award Date through the Maintenance Period Completion Date. Recipient shall complete and maintain the Project within the Project time period shown below: Page 227 of 297 Contract # 18-TC-018 - 14 - Fmt Approved 12/2014 COMPLIANCE MEASUREMENT POINT COMPLIANCE MEASUREMENT POINT Award Date Project Completion Period Project Completion Date Maintenance Period Maintenance Period Completion Date Contract Closeout “Award Date” is the date first stated in this Contract and is the date the IEDA Board approved the awarding of financial assistance to the Recipient for the Project. “Project Completion Period” is the period of time between the Award Date and the Project Completion Date. “Project Completion Date” is the date defined in Exhibit D by which the Recipient must complete the Project. At this point, IEDA will review the Project to verify compliance with Contract terms and obligations. “Maintenance Period” is the period of time between the Project Completion Date and the Maintenance Period Completion Date. The Project must be maintained in Iowa for this period of time. “Maintenance Period Completion Date” is the date defined in Exhibit D on which the Maintenance Period ends. At this point, IEDA will review the Project to verify that it was maintained in compliance with Contract terms and obligations. IEDA will conduct Contract Closeout procedures after all events described in Article 1 have been met. “Contract End Date” is the date stated in IEDA’s written Notice of Final Contract Closeout that is issued pursuant to Article 1. (d) Complete Project by Project Completion Date. By the Project Completion Date, Recipient shall complete the Project, make the total investment it pledged for the Project and in accordance with the Award Budget as detailed in Exhibit C - Description of the Project and Award Budget, and comply with all other performance requirements described in this Contract. (e) Total Project Costs. By the Project Completion Date, Recipient shall have completed the Project with a Total Project Cost as detailed in Exhibit C - Description of the Project and Award Budget. (f) Maintain Project through Maintenance Period Completion Date. Recipient shall maintain the Project through the Maintenance Period Completion Date. (g) Maintain Project in Iowa During Contract Period. The Recipient shall at all times preserve and maintain its existence as a corporation in good standing and maintain the Project in Iowa. The Recipient will preserve and keep in force and effect all licenses, permits, franchises, approvals, patents, trademarks, trade names, trade styles, copyrights and other proprietary rights necessary to the proper conduct of its respective business. 7.2 Taxes and Insurance. (a) Pay Taxes and Assessments. The Recipient shall duly pay and discharge all taxes, rates, assessments, fees, and governmental charges upon or against its properties, in each case before the same become delinquent and before penalties accrue thereon, unless and to the extent that the same are being contested in good faith and by appropriate proceedings and adequate reserves are provided therefore. (b) Maintain Insurance. The Recipient shall insure and keep insured in good and responsible insurance companies all insurable property owned by it which is of a character usually insured by Persons similarly situated and operating like properties against loss or damage from such hazards or risks as are insured by Persons similarly situated and operating like properties, and the Recipient shall insure such other hazards and risks, including employers' and public liability risks in good and responsible insurance companies as and to the extent usually insured by Persons similarly situated and conducting similar business. The Page 228 of 297 Contract # 18-TC-018 - 15 - Fmt Approved 12/2014 Recipient will, upon request of IEDA, furnish a certificate setting forth in summary form the nature and extent of the insurance maintained pursuant to this Article. 7.3 Preserve Project and Protect Security. (a) Maintenance of Properties. The Recipient shall maintain, preserve and keep its properties in good repair, working order and condition, ordinary wear and tear excepted, and will from time to time make all needful and proper repairs, renewals, replacements, additions and betterments thereto so that at all times the efficiency thereof shall be fully preserved and maintained in accordance with prudent business practices. (b) Restrictions on Security. If Security is required pursuant to Article 5 of this Contract, the Recipient shall not, without prior written disclosure to IEDA and prior written consent of IEDA, which shall not be unreasonably withheld, directly or indirectly: 1. Sell, transfer, convey, assign, encumber or otherwise dispose of any of the Secured Property for this Project. 2. Place or permit any restrictions, covenants or any similar limitations on the Secured Property or in the Security Documents for the Project. 3. Remove from the Project site or the State all or any part of the Secured Property. 4. Create, incur or permit to exist any lien of any kind on the Secured Property. 7.4 Recipient Changes. (a) No Changes in Recipient Operations. The Recipient shall not materially change the Project or the nature of the business and activities being conducted or proposed to be conducted by Recipient, as described in the Recipient's approved Financial Assistance Application, Exhibit A of this Contract, unless approved in writing by IEDA prior to the change. (b) Changes in Recipient Ownership, Structure and Control. The Recipient shall not materially change the ownership, structure, or control of the business if it would adversely affect the Project. This includes, but is not limited to, entering into any merger or consolidation with any person, firm or corporation or permitting substantial distribution, liquidation or other disposal of assets directly associated with the Project. Recipient shall provide IEDA with advance notice of any proposed changes in ownership, structure or control. The materiality of the change and whether the change adversely affects the Project shall be as reasonably determined by IEDA. 7.5 Required Reports. (a) Review of Reports. The Recipient shall prepare, sign and submit required reports, in the form and content required by IEDA, as specified in this Contract. (b) Reports. The Recipient shall prepare, sign and submit the following reports to the IEDA throughout the Contract period: Report Due Date Annual Project Status Report The Annual Project Status Report will collect information from the Recipient about the status of the Project. July 31st for the period ending June 30th Page 229 of 297 Contract # 18-TC-018 - 16 - Fmt Approved 12/2014 End of Project Report The End of Project Report will collect information from the Recipient about the completed Project. Within 30 days of Project Completion Date End of Maintenance Period Report The End of Maintenance Period Report will collect information from the Recipient’s continued maintenance of the Project. Within 30 days of the end of the Maintenance Period Completion Date (c) Additional Reports, Financial Statements as Requested by IEDA. The IEDA reserves the right to require more frequent submission of reports if, in the opinion of the IEDA, more frequent submissions would provide needed information about Recipient’s Project performance, or if necessary in order to meet requests from the Iowa General Assembly, the Department of Management or the Governor’s office. At the request of IEDA, Recipient shall submit the annual 10K SEC Filing of its parent company and subsidiaries which includes Recipient. . 7.6 Compliance with Laws. (a) State, local and federal laws. Recipient shall comply in all material respects with the requirements of all applicable federal, state and local laws, rules, regulations and orders. (b) Environmental laws. Recipient shall comply in all material respects with all applicable environmental, hazardous waste or substance, toxic substance and underground storage laws and regulations, and the Recipient shall obtain any permits or licenses and shall acquire or construct any buildings, improvements, fixtures, equipment or its property required by reason of any applicable environmental, hazardous waste or substance, toxic substance or underground storage laws or regulations. (c) Nondiscrimination laws. Recipient shall comply in all material respects with all applicable federal, state, and local laws, rules, ordinances, regulations and orders applicable to the prevention of discrimination in employment, including the administrative rules of the Iowa Department of Management and the Iowa Civil Rights Commission which pertain to equal employment opportunity and affirmative action. (d) Worker rights and safety. The Recipient shall comply in all material respects with all applicable federal, state and local laws, rules, ordinances, regulations and orders applicable to worker rights and worker safety. (e) Immigration laws. Recipient shall only employ individuals legally authorized to work in this State. In addition to any and all other applicable penalties provided by current law, all or a portion of the Award is subject to recapture by IEDA if Recipient is found to knowingly employ individuals not legally authorized to work in the State of Iowa. (f) Compliance with IEDA’s Administrative Rules. Recipient shall comply with IEDA’s administrative rules for the programs under which assistance is provided to the Project and rules governing administration of this Contract. 7.7 Inspection and Audit. The Recipient shall permit the IEDA and its duly authorized representatives, at such reasonable times and reasonable intervals as the IEDA may designate, to: (a) Conduct site visits and inspect the Project. Page 230 of 297 Contract # 18-TC-018 - 17 - Fmt Approved 12/2014 (b) Audit financial records related to the Project. (c) Examine and make copies of the books of accounts and other financial records of the Recipient related to the Project. (d) Discuss the affairs, finances and accounts of the Recipient with, and to be advised as to the same by, its officers, and independent public accountants. By this provision, the Recipient authorizes such accountants to discuss with the IEDA and the IEDA’s duly authorized representatives the finances and affairs of the Recipient related to the Project 7.8 Maintenance and Retention of Records. (a) Maintain Accounting Records. The Recipient is required to maintain its books, records and all other evidence pertaining to this Contract in accordance with GAAP and such other procedures specified by IEDA. (b) Access to Records. Records to verify compliance with the terms of this Contract shall be available at all times, and made available to IEDA and its designees at places and times designated by IEDA, for the duration of this Contract and any extensions thereof. Recipient shall make its records available to: (i) IEDA; (ii) IEDA’s internal or external auditors, agents and designees; (iii) the Auditor of the State of Iowa; (iv) the Attorney General of the State of Iowa; (v) the Iowa Division of Criminal Investigations and any other applicable law enforcement agencies. (c) Records Retention Period. Recipient shall retain the records for a period of three (3) years from the Contract End Date, unless the records are the subject of an audit, investigation, or administrative or legal proceeding. In those instances, the records shall be retained until the audit, investigation or proceeding has been resolved. 7.9 Required Notices from Recipient to IEDA. (a) Notice of Major Changes. Recipient shall provide IEDA with written notice within thirty (30) days of the occurrence of: (a) any event that has a material adverse effect on Recipient’s ability to complete the Project in accordance with the terms of this Contract; (b) the termination of the business conducted at the Project; (c) a material modification of the nature of the business conducted at the Project; and (d) the transfer of the Project or any material interest in the Project in connection with financing or refinancing the Project. (b) Notice of Proceedings. Without limiting Section 7.9(a), Recipient shall promptly provide IEDA with written notice within ten (10) days of the occurrence of any claims, lawsuits, bankruptcy proceedings, or other proceedings brought against Recipient that have a material adverse effect on Recipient’s ability to complete the Project in accordance with the terms of this Contract. 7.10 Indemnification. The Recipient shall indemnify, defend and hold harmless the IEDA; the State of Iowa; its departments, divisions, agencies, sections, commissions, officers, employees and agents from and against all losses, liabilities, penalties, fines, damages and claims ,including taxes, and all related costs and expenses ,including reasonable attorneys' fees and disbursements and costs of investigation, litigation, settlement, judgments, interest and penalties, arising from or in connection with any of the following: (a) Any claim, demand, action, citation or legal proceeding arising out of or resulting from the Project; (b) Any claim, demand, action, citation or legal proceeding arising out of or resulting from a breach by the Recipient of any representation, warranty or covenant made by the Recipient in this Contract; Page 231 of 297 Contract # 18-TC-018 - 18 - Fmt Approved 12/2014 (c) Any claim, demand, action, citation or legal proceeding arising out of or related to occurrences that the Recipient is required to insure against as provided for in this Contract; and (d) Any claim, demand, action, citation or legal proceeding which results from an act or omission of the Recipient or any of its agents in its or their capacity as an employer of a person. 7.11 Repayment of Unallowable Costs. Recipient shall repay any Award received or realized that is determined by IEDA, its auditors, agents or designees, the Auditor of the State of Iowa, or similar authorized governmental entity to be unallowable under the terms of this Contract. 7.12 Ongoing Fees Based on Claims. For the duration of this Contract and for as long as Recipient claims or applies for benefits against its Iowa tax liability under this Contract, Recipient shall remit to the Authority a compliance cost fee equal to one-half of 1 percent of the value of the Tax Incentives claimed pursuant to this Contract. The fee shall be due and payable upon filing the Recipient’s annual tax return for each tax year in which the Recipient claims Tax Incentives under this Contract. ARTICLE 8: COVENANTS OF THE COMMUNITY For the duration of this Contract, the Community covenants to IEDA as follows: 8.1 Local Match. The Community shall provide the local financial assistance for the Project as described in Exhibit C, Project Description and Award Budget. 8.2 Notice to IEDA. In the event the Community becomes aware of any material alteration in the Project, initiation of any investigation or proceeding involving the Project, any change in the Recipient's ownership, structure or operation, or any other similar occurrence, the Community shall promptly provide written notice to IEDA. ARTICLE 9: DEFAULTS AND REMEDIES 9.1 Default by Recipient. An unremedied Event of Default may result in termination of this Contract and repayment of all or a portion of the Award Funds disbursed to Recipient and the value of the Tax Incentives actually received, plus applicable default interest and costs. (a) Events of Default Any one or more of the following shall constitute an "Event of Default" under this Contract: 1. Nonpayment. Failure to make a payment when due of any Loan or other payment required by this Contract whether by lapse of time, acceleration or otherwise; or 2. Noncompliance with Covenants. Default in the observance or performance of any covenant set forth in Article 7, for more than twenty (20) business days; or 3. Noncompliance with Security Documents. Default in the observance or performance of any term of any Security Document if required in Article 5 beyond any applicable grace period set forth therein; or 4. Noncompliance with Contract. Default in the observance or performance of any other provision of this Contract; or Page 232 of 297 Contract # 18-TC-018 - 19 - Fmt Approved 12/2014 5. Material Misrepresentation. Any representation or warranty made by the Recipient in this Contract or in any statement or certificate furnished by it pursuant to this Contract, or made in Exhibit A, Recipient’s Financial Assistance Application, or in connection with any of the above, proves untrue in any material respect as of the date of the issuance or making thereof; or 6. Security Deficiencies. Any of the Security Documents that represent the Security pledged by Recipient to secure this Contract fails for any reason to create a valid and perfected priority security interest in favor of the IEDA; or 7. Judgment. Any judgment or judgments, writ or writs or warrant or warrants of attachment, or any similar process or processes entered or filed against the Recipient or against any of its property and remains unvacated, unbonded or unstayed for a period of 30 days which materially and adversely affects Recipient’s ability to perform its obligations under this Contract; or 8. Adverse Change in Financial Condition. Any change occurs in the financial condition of the Recipient which would have a material adverse effect on the ability of the Recipient to perform under this Contract; or 9. Bankruptcy or Similar Proceedings Initiated. Either the Recipient shall (i) have entered involuntarily against it an order for relief under the United States Bankruptcy Code, as amended, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to, or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its property, (v) commence any proceeding seeking to have entered against it an order for relief under the United States Bankruptcy Code as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, or (vi) fail to contest in good faith any appointments or proceeding described below; or 10. Appointment of Officials. A custodian, receiver, trustee, examiner, liquidator or similar official is appointed for either the Recipient or any substantial part of any of its respective property, or a proceeding described above is commenced against the Recipient and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of sixty (60) days; or 11. Insecurity. IEDA in good faith deems itself insecure and reasonably believes, after consideration of all the facts and circumstances then existing, that the prospect of payment and satisfaction of the obligations under this Contract, or the performance of or observance of the covenants in this Contract, is or will be materially impaired; or 12. Failure to Submit Required Reports. The Recipient fails to submit complete reports by the required due dates as outlined in Article 7; or 13. Layoffs, Relocation or Closure. The Recipient or any Affiliate experiences a layoff or relocates or closes any of its facilities within the state of Iowa; or 14. Hiring workers not authorized to work in state. The Recipient fails to only employ only individuals legally authorized to work in the state of Iowa. If Recipient is found to knowingly employ individuals not legally authorized to work in the state of Iowa then, in addition to any and all other applicable penalties provided by current law, all or a portion of the assistance received is subject to repayment; or 15. Failure to Maintain Program Eligibility Requirements. Recipient fails to maintain a statutory Page 233 of 297 Contract # 18-TC-018 - 20 - Fmt Approved 12/2014 eligibility requirement for a program providing assistance under this Contract. (b) Notice of Default and Opportunity to Cure. If IEDA has reasonable cause to believe that an Event of Default has occurred under this Contract, IEDA shall issue a written Notice of Default to the Recipient setting forth the nature of the alleged default in reasonable specificity and providing therein a reasonable period of time, which shall not be fewer than thirty (30) days from the date of the Notice of Default, during which the Recipient shall have an opportunity to cure, provided that cure is possible and feasible. (c) Remedies Available to IEDA. When an Event of Default has occurred and is not cured within the required time period, IEDA may, after written notice to Recipient: 1. Terminate this Contract. 2. Suspend or reduce pending and future disbursements. 3. Declare immediately due and payable without further demand, presentment, protest or notice of any kind the principal and any accrued interest on any outstanding Promissory Notes issued pursuant to this Contract, including both principal and interest and all fees, charges and other amounts payable under this Contract. 4. Require repayment of all or a portion of Award Funds disbursed. 5. Revoke or reduce authorized Tax Incentives. 6. Require full repayment of all or a portion of the value of Tax Incentives received. (d) Reserved. (e) Default Interest Rate. If an Event of Default occurs and remains uncured, a default interest rate of 6% shall apply to repayment of amounts due under this Contract. The default interest rate shall accrue from the first date Award Funds are disbursed or Tax Incentives are received. (f) Expenses. The Recipient agrees to pay to the IEDA all expenses reasonably incurred or paid by IEDA, including reasonable attorneys’ fees and court costs, in connection with any Default or Event of Default by the Recipient or in connection with the enforcement of any of the terms of this Contract. 9.2 Default by Community. An unremedied Event of Default may result in termination of this Contract and repayment by Community of all or a portion of the pledged local match, plus applicable default interest and costs. (a) Events of Default. Any one or more of the following shall constitute an "Event of Default by Community" under this Contract: 1. Noncompliance with Covenants. Default in the observance or performance of any covenants of the Community set forth in Article 8, for more than five (5) business days; or 2. Material Misrepresentation. Any representation or warranty made by the Community in this Contract or in any statement or certificate furnished by it pursuant to this Contract, or made by Community in Exhibit A, Recipient’s Financial Assistance Application, or in connection with any of the above, proves untrue in any material respect as of the date of the issuance or making thereof. (b) Notice of Default and Opportunity to Cure. If IEDA has reasonable cause to believe that an Event of Default has occurred under this Contract, IEDA shall issue a written Notice of Default to the Community Page 234 of 297 Contract # 18-TC-018 - 21 - Fmt Approved 12/2014 setting forth the nature of the alleged default in reasonable specificity and providing therein a reasonable period of time, which shall not be fewer than thirty (30) days from the date of the Notice of Default, during which the Community shall have an opportunity to cure, provided that cure is possible and feasible. (c) Remedies Available to IEDA. When an Event of Default by Community has occurred and is not cured within the required time period, IEDA may, after written notice to Community: 1. Suspend or reduce pending and future disbursements to Community. 2. Require payment by Community of the amount of local financial assistance pledged to the Project but not provided. (d) Expenses. The Community agrees to pay to the IEDA all expenses reasonably incurred or paid by IEDA including reasonable attorneys’ fees and court costs, in connection with any Default or Event of Default by the Community or in connection with the enforcement of any of the terms of this Contract. ARTICLE 10: MISCELLANEOUS. 10.1 Choice of Law and Forum; Governing Law. (a) In the event any proceeding of a quasi-judicial or judicial nature is commenced in connection with this Contract, the proceeding shall be brought in Des Moines, Iowa, in Polk County District Court for the State of Iowa, if such court has jurisdiction. If, such court lacks jurisdiction and jurisdiction lies only in a United States District Court, the matter shall be commenced in the United States District Court for the Southern District of Iowa, Central Division. (b) This provision shall not be construed as waiving any immunity to suit or liability, in state or federal court, which may be available to the IEDA, the State of Iowa or its members, officers, employees or agents. (c) This Contract and the rights and duties of the parties hereto shall be governed by, and construed in accordance with, the internal laws of the State of Iowa without regard to principles of conflicts of laws. 10.2 Contract Amendments. Neither this Contract nor any documents incorporated by reference in connection with this Contract, may be changed, waived, discharged or terminated orally, except as provided below: (a) Writing required. The Contract may only be amended if done so in writing and signed by all the parties. Examples of situations requiring an amendment include, but are not limited to, time extensions, budget revisions, and significant alterations of existing activities or beneficiaries. (b) IEDA review. Requests to amend this Contract shall be processed by IEDA in compliance with the IEDA’s rules and procedures applicable to contract amendments. 10.3 Notices. Except as otherwise specified herein, all notices hereunder shall be in writing, including, without limitation by fax, and shall be given to the relevant party at its address, e-mail address, or fax number set forth below, or such other address, e-mail address, or fax number as such party may hereafter specify by notice to the other parties provided by United States mail, by fax or by other telecommunication device capable of creating a written record of such notice and its receipt. Notices hereunder shall be addressed: Page 235 of 297 Contract # 18-TC-018 - 22 - Fmt Approved 12/2014 To the Recipient at: Tyson Fresh Meats, Inc. Alyson Brown 2200 Don Tyson Parkway (CP131) Springdale, AR 72762 E-mail: Alyson.Brown@tyson.com Telephone: 479.290.4809 To the IEDA at: Iowa Economic Development Authority Compliance 200 East Grand Avenue Des Moines, Iowa 50309 Attention: Business Development - Compliance E-mail: Compliance@iowaeda.com Telephone: 515.725.3000 Facsimile: 515.725.3010 To the Community at: City of Waterloo Noel Anderson 715 Mulberry St. Waterloo, IA 50703 E-mail: noel.anderson@waterloo-ia.org Telephone: 319.291.4366 Each such notice, request or other communication shall be effective (i) if given by facsimile, when such facsimile is transmitted to the facsimile number specified in this Article and a confirmation of such facsimile has been received by the sender, (ii) if given by e-mail, when such e-mail is transmitted to the e-mail address specified in this Article and a confirmation of such e-mail has been received by the sender, (iii) if given by mail, five (5) days after such communication is deposited in the mail, certified or registered with return receipt requested, addressed as aforesaid or (iv) if given by any other means, when delivered at the addresses specified in this Article. 10.4 Headings. Article headings used in this Contract are for convenience of reference only and are not a part of this Contract for any other purpose. 10.5 Final Authority. The IEDA shall have the authority to reasonably assess whether the Recipient has complied with the terms of this Contract. Any IEDA determinations with respect to compliance with the provisions of this Contract shall be deemed final determinations pursuant to Iowa Code Chapter 17A, Iowa Administrative Procedure Act. 10.6 Waivers. No waiver by IEDA of any default hereunder shall operate as a waiver of any other default or of the same default on any future occasion. No delay on the part of the IEDA in exercising any right or remedy hereunder shall operate as a waiver thereof. No single or partial exercise of any right or remedy by IEDA shall preclude future exercise thereof or the exercise of any other right or remedy. Page 236 of 297 Contract # 18-TC-018 - 23 - Fmt Approved 12/2014 10.7 Counterparts. This Contract may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. 10.8 Survival of Representations. All representations and warranties made herein or in any other Contract document or in certificates given pursuant hereto or thereto shall survive the execution and delivery of this Contract and the other Contract documents and shall continue in full force and effect with respect to the date as of which they were made until all of Recipient's obligations or liabilities under this Contract have been satisfied. 10.9 Severability of Provisions. Any provision of this Contract which is unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. All rights, remedies and powers provided in this Contract or any other Contract document may be exercised only to the extent that the exercise thereof does not violate any applicable mandatory provisions of law, and all the provisions of this Contract and any other Contract document are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Contract or any other Contract document invalid or unenforceable. 10.10 Successors and Assigns. This Contract shall be binding upon the Recipient and IEDA and their respective successors and assigns, and shall inure to the benefit of the IEDA and Recipient and their successors and assigns. 10.11 Nonassignment. This Contract shall not be assigned, in whole or in part, by Recipient unless approved in writing by IEDA. 10.12 Termination. This Contract can be terminated under any of the following circumstances: (a) Agreement of the Parties. Upon written agreement of the Recipient, the Community and IEDA. (b) Unremedied Event of Default. As a result of the Recipient’s or Community’s unremedied Event of Default pursuant to Article 9. (c) Termination or reduction in funding to IEDA. As a result of the termination or reduction of funding to IEDA as provided in Article 4.4(c). 10.13 Documents Incorporated by Reference. The following documents are incorporated by reference and considered an integral part of this Contract: 1. Exhibit A - Recipient’s Financial Assistance Application (on file with IEDA), Application # 18-HQJP-018 2. Exhibit B-1 High-Quality Jobs Program – Tax Credit Component Special Conditions 3. Exhibit C - Description of the Project and Award Budget 4. Exhibit D - Job Obligations 5. Exhibit E- Reserved 6. Exhibit F - Reserved 10.14 Order of Priority. In the case of any inconsistency or conflict between the specific provisions of this document and the exhibits, the following order of priority shall control: Page 237 of 297 Contract # 18-TC-018 - 24 - Fmt Approved 12/2014 1. Article 1 - 10 of this Contract. 2. Exhibit A - Recipient’s Financial Assistance Application (on file with IEDA), Application # 18-HQJP-018 3. Exhibit B-1 High-Quality Jobs Program – Tax Credit Component Special Conditions 4. Exhibit C - Description of the Project and Award Budget 5. Exhibit D - Job Obligations 6. Exhibit E - Reserved 7. Exhibit F - Reserved 10.15 Integration. This Contract contains the entire understanding between the Parties relating to the Project and any representations that may have been made before or after signing this Contract, which are not contained herein, are nonbinding, void and of no effect. None of the Parties has relied on any such prior representation in entering into this Contract. -This space intentionally left blank, signature page follows - Page 238 of 297 Contract # 18-TC-018 - 25 - Fmt Approved 12/2014 IN WITNESS WHEREOF in consideration of the mutual covenants set forth above and for other good and valuable consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the parties have entered into this Contract and have caused their duly authorized representatives to execute this Contract, effective as of the latest date stated below (Contract Effective Date). FOR IEDA: FOR RECIPIENT: BY: Deborah V. Durham, Director BY: Signature Typed Name and Title Date Date FOR THE COMMUNITY: BY: Signature Typed Name and Title Date Page 239 of 297 Contract # 18-TC-018 - 26 - Fmt Approved 12/2014 LIST OF EXHIBITS Exhibit A - Recipient’s Financial Assistance Application (on file with IEDA), Application # 18- HQJP-018 Exhibit B-1 High Quality Jobs Program – Tax Credit Component Special Conditions Exhibit C - Description of the Project and Award Budget Exhibit D - Job Obligations Exhibit E - Reserved Exhibit F - Reserved Page 240 of 297 Contract # 18-TC-018 Exhibit B-1, Page 1 Fmt Approved 12/2014 EXHIBIT B – 1 High Quality Jobs Program – Tax Credit Component Special Conditions to Contract # 18-TC-018 The following additional terms shall apply to the Contract: SECTION 1: ADDITIONAL DEFINITIONS. The following additional terms are defined in this Contract as follows: “Capital Investment” means the investment spent on depreciable assets. The minimum Capital Investment required for this Project is as stated in Section 2 of this Exhibit. The allowable categories of expenditures for purposes of calculating Capital Investment are described in IEDA’s administrative rule 261 IAC 174.10. "Investment Qualifying for the Tax Credit" means new investment directly related to jobs created or retained by the start-up, location, expansion or modernization for this Project. "Qualifying Investment" means the statutorily-required minimum investment amount that must be made and maintained by the Recipient to receive High Quality Jobs Program Tax Incentives for this Project. This amount is as stated in Section 2 of this Exhibit. Not all expenditures count toward meeting the required Qualifying Investment. The categories of expenditures that can be included for purposes of meeting and maintaining statutorily-required investment requirements are described in 261 IAC 174.10. “Economically Distressed Area” means a county that ranks among the bottom 33 of all Iowa counties, as measured by either the average monthly unemployment level for the most recent 12-month period or the average annualized unemployment level for the most recent five-year period. SECTION 2: TERMS AND CONDITIONS OF THE AWARD 2.1 Award. The Recipient is awarded the following Tax Incentives through the High Quality Jobs Program, based on the minimum investment requirements described herein: $2,396,535. 2.2 Minimum Investment Requirements. As a condition of receiving Tax Incentives, the Recipient shall meet the following minimum investment requirements: (a) Capital Investment. $ 28,242,500 (b) Qualifying Investment. $ 28,242,500 (c) Investment Qualifying for Tax Credits. $ 28,242,500 2.3 Additional Tax Incentives. The Recipient is eligible for additional incentives pursuant to Iowa Code section 15.326, et. seq. The following Tax Incentives, in the maximum amounts shown for each authorized incentive, are so available to the Recipien Page 241 of 297 Contract # 18-TC-018 Exhibit B-1, Page 2 Fmt Approved 12/2014 Authorized Incentives Included in Award Maximum Amt. Refund of Sales, Service, and Use Taxes. Yes No $ 396,535 Refund of Sales Taxes Attributable to Racks, Shelving, and Conveyor Equipment. Yes No $ 0 Corporate Tax Credit For Certain Sales Taxes Paid By Third Party Developer. Yes No $ 0 Investment Tax Credit (7%, negotiated) Yes No $ 2,000,000 Research Activities Credit. Yes No $ 0 Local Property Tax Exemption Provided by Community Yes No $ 0 2.4 Conditions for Authorized Incentives. The Recipient is responsible to seek these additional incentives through processes described in the applicable statutes and corresponding administrative rules, ordinances and procedures. The following conditions shall apply to the incentives described in section 2.3 of this Exhibit. (a) Refund Of Sales, Service And Use Taxes Paid To Contractors Or Subcontractors. The Recipient is eligible for a refund of sales, service and use taxes paid to contractors and subcontractors as authorized in Iowa Code section 15.331A (2011 Supplement). 1. The Recipient may apply for a refund of the sales and use taxes paid under Iowa Code chapters 422 and 423 for gas, electricity, water or sewer utility services, goods, wares, or merchandise, or on services rendered, furnished, or performed to or for a contractor or subcontractor and used in the fulfillment of a written contract relating to the construction or equipping of a facility of the Recipient. 2. Taxes attributable to intangible property and furniture and furnishings shall not be refunded. 3. To receive a refund of the sales, service and use taxes paid to contractors or subcontractors, the Recipient must: i. Inform the Iowa Department of Revenue (IDR) in writing within two weeks of project completion. For purposes of claiming this refund, "project completion" means the first date upon which the average annualized production of finished product for the preceding ninety-day period at the manufacturing facility operated by the Recipient is at least fifty percent of the initial design capacity of the facility. ii. Make an application to IDR within one year after Project Completion, as defined in sub-paragraph i above. (b) Reserved. Page 242 of 297 Contract # 18-TC-018 Exhibit B-1, Page 3 Fmt Approved 12/2014 (c) Reserved. (d) Investment Tax Credit. 1. The Recipient may claim an investment tax credit as provided in Iowa Code section 15.333. Such credit may be claimed for a portion of the Qualifying Expenditures, as defined below in subparagraph (3), directly related to Job Obligations, as described in Exhibit D, of the start-up or location, expansion, or modernization of the business under this program. The credit shall be earned when the qualifying asset is placed in service. The Recipient shall not claim more than the amount authorized for this incentive as stated above and in Article 3 of the Contract. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs first. 2. The tax credit shall be amortized equally over a five-year period as specified below: October 1, 2016 – September 20, 2017 $ 400,000 October 1, 2017 – September 20, 2018 $ 400,000 October 1, 2018 – September 20, 2019 $ 400,000 October 1, 2019 – September 20, 2020 $ 400,000 October 1, 2020 – September 20, 2021 $ 400,000 3. Only Qualifying Expenditures are eligible for the investment tax credit. For purposes of this benefit, “Qualifying Expenditures” means: i. The purchase price of real property and any buildings and structures located on the real property. ii. The cost of improvements made to real property which is used in operation of the business. iii. The costs of machinery and equipment, as defined in Iowa Code section 427A.1(1) “e” and “j” purchased for use in the operation of the business and for which the purchase price may have been depreciated in accordance with GAAP. 4. If the Project includes leasing of new construction or major renovation of an existing building, the annual base rent paid to a third-party developer by Recipient must be for a period equal to the term of the lease agreement but cannot exceed the maximum term of the agreement, provided the cumulative cost of the base rent payments for that period does not exceed the cost of the land or the third-party developer’s costs to build or renovate the building for the Recipient. Limitations to annual base rent shall only be considered when the Project includes the construction of a new building or the major renovation of an existing building. The Recipient shall enter into a lease agreement with the third-party developer for a minimum of five years. (e) Reserved. (f) Reserved. Page 243 of 297 Contract # 18-TC-018 Exhibit B-1, Page 4 Fmt Approved 12/2014 SECTION 3: ADDITIONAL COVENANTS In addition to the Covenants described in Article 7 of the Contract, the Recipient shall be bound to the additional covenants: 3.1 Job Obligations. By the Project Completion Date, the Recipient shall create and/or retain the number of FTE Created Jobs and Retained Jobs as detailed in Exhibit D – Job Obligations, and maintain the jobs through the Maintenance Period. 3.2 Wage Obligations. The Qualifying Wage Threshold rates specific to this Contract that must be met are stated in Exhibit D, Job Obligations. By the Project Completion Date and through the Maintenance Completion Period Date, the Recipient shall: (a) For Projects in Economically Distressed Areas or at a designated Grayfield Site, the Qualifying Wage Threshold requirement applicable to all phases of the Project is 100% of the Qualifying Wage Threshold. (b) For Projects at a designated Brownfield Site, the Qualifying Wage Threshold requirement applicable to all phases of the Project is 90% of the Qualifying Wage Threshold. (c) For all other Projects: 1. For the Created Jobs, pay 100% of the Qualifying Wage Threshold at the start of the Project Completion Period, at least 120% of the Qualifying Wage Threshold by the Project Completion Date, and at least 120% of the Qualifying Wage Threshold until the Maintenance Period Completion Date. 2. For the Retained Jobs, pay at least 120% of the Qualifying Wage Threshold throughout both the Project Completion Period and the Maintenance Period. 3.3 Provide Sufficient Benefits. The Recipient shall provide Sufficient Benefits to all employees included as part of the job and wage obligations. SECTION 4: ADDITIONAL DEFAULT PROVISIONS In addition to the default provisions included in Article 9 of the Contract, the following default provisions shall apply: 4.1 Repayment of Tax Incentives Received - High Quality Jobs Program. IDR is the state agency responsible for collecting the value of any Tax Incentives received in violation of the terms of this Contract. The Community is the party responsible for collecting the value of the local tax incentives received in violation of this Contract. IEDA will determine if the Recipient has met the terms of this Contract. If there is an unremedied Event of Default, IEDA will provide written notice to IDR and the Community. Calculation of the amount owed may be based on a sliding scale in certain circumstances and may include interest assessed by IDR. Those circumstances are as follows: (a) Failure to Meet Job Obligations by Project Completion Date. If the Recipient does not meet its Job Obligations as detailed in Exhibit D, Job Obligations by the Project Completion Date, the repayment amount shall be the same proportion as the amount of the shortfall in created jobs. For example, if the business creates 50 percent of the jobs required, the business shall repay 50 percent of the incentives received. Page 244 of 297 Contract # 18-TC-018 Exhibit B-1, Page 5 Fmt Approved 12/2014 Upon repayment of the amount due, IEDA will reduce the Recipient’s Job Obligations. The reduced Job Obligations must be maintained through the Maintenance Period Completion Date. (b) Job shortfall at Maintenance Period Completion Date. If the Recipient does not maintain its adjusted Job Obligations through the Maintenance Period Completion Date, Recipient shall repay an additional percentage of the Tax Incentives it has received. The amount to be repaid will be calculated as described in subsection (a) above. (c) Qualifying Investment. If the Business does not meet its Qualifying Investment requirement as defined in Section 2 of this Exhibit, the repayment amount shall be the same proportion as the amount of the shortfall in required Qualifying Investment. For example, if the business meets 75 percent of the amount of required capital investment, the business shall repay 25 percent of the amount of the incentives received. (d) Less than Total Project Cost at Project Completion Date. If the Recipient does not complete the Project with a Total Project Cost as stated in Exhibit C, Project Description and Award Budget, by the Project Completion Date Recipient shall repay a portion of the Tax Incentives received. For example, if the Recipient’s required Total Project Cost is 10% less than pledged, 10% of the value of the Tax Incentives received, plus any interest assessed by IDR, must be repaid. (e) Repayment Amount If Shortfall in Job Obligations, Qualifying Investment and/or Less Than Total Project Cost. If the Recipient experiences a shortfall in two or more of its requirements related to Job Obligations, Qualifying Investment, or the Total Project Cost, IEDA will calculate the percentage owed for the Recipient’s failure to meet each of the requirements. The higher of these amounts shall be the amount Recipient shall repay to IDR. (f) Selling, Disposing, or Razing of Property. If, within five years of purchase, the Recipient sells, disposes of, razes, or otherwise renders unusable all or a part of the land, building, or other existing structures for which an investment tax credit was claimed, the income tax liability of the Recipient for the year in which all or part of the property is sold, disposed of, razed, or otherwise rendered unusable shall be increased by one of the following amounts, plus any interest assessed by IDR: 1. 100% of the tax credit claimed if the property ceases to be approved for the tax credit within one full year after being placed in service. 2. 80% of the tax credit claimed if the property ceases to be approved for the tax credit within two full years after being placed in service. 3. 60% of the tax credit claimed if the property ceases to be approved for the tax credit within three full years after being placed in service. 4. 40% of the tax credit claimed if the property ceases to be approved for the tax credit within four full years after being placed in service. 5. 20% of the tax credit claimed if the property ceases to be approved for the tax credit within five full years after being placed in service. - End of Exhibit B – 1 - Page 245 of 297 PROJECT DESCRIPTION Tyson Fresh Meats, Inc. will construct a 56,400 s.f. new warehouse addition and renovate 18,250 square foot existing building. Implementing the warehouse expansion will improve accuracy, inventory management, product flow, overall efficiency and customer service. AWARD BUDGET SOURCE OF FUNDS AMOUNT FORM USE OF FUNDS COST IEDA Programs *Land Acquisition HQJP Tax Credit 1 See Below *Site Preparation $909,788 *Building Acquisition Tyson $28,242,500 Cash/Equity *Building Construction $12,308,034 *Building Remodeling Lease Payments *Mfg Machinery and Equipment $15,024,678 Other Machinery and Equipment Racking, Shelving, etc. *Computer Hardware Computer Software *Furniture and Fixtures Working Capital Research and Development Job Training *included as capital investment if awarded tax credit program Total $28,242,500 Total $28,242,500 1$2,396,535 estimated benefit value OTHER FUNDING SOURCE OF FUNDS TOTAL AMOUNT FORM/TERM USED AS MATCH TIF Rebate Tax Exemption TBD 427B YES 260E Job Training In-Kind Contributions RISE RED Other DESCRIPTION OF THE PROJECT AND AWARD BUDGET (EXHIBIT C) Name of Recipient: Tyson Fresh Meats, Inc. Name of Community: City of Waterloo Contract Number: 18-TC-018 Page 246 of 297 EXHIBIT D – JOB OBLIGATIONS Recipient: Tyson Fresh Meats, Inc. Community: City of Waterloo Contract Number: 18-TC-018 This Project has been awarded Project Completion Assistance and Tax Incentives from the High Quality Jobs Program (HQJP) – Tax Credit Component. The chart below outline the contractual job obligations related to this Project. Data in the “Employment Base” column has been verified by IEDA and reflects the employment characteristics of the facility receiving funding before this award was made. Jobs to be retained as a part of this Project must be included in these calculations. Data in the “Jobs To Be Created” column outlines the new full-time jobs (including their wage characteristics) that must be added to the employment base and, if applicable, statewide employment base as a result of this award. At the Project Completion Date and through the Maintenance Period Completion Date, the Recipient must achieve, at a minimum, the numbers found in the “Total Job Obligations” column. HQJP JOB OBLIGATIONS Employment Jobs Total Project Completion Date: September 30, 2020 Base To Be Created Job Maintenance Period Completion Date: September 30, 2022 Obligations Total employment at project location 2,892 245 3,137 Average wage of total employment at project location $17.52 Qualifying Laborshed Wage threshold requirement (per hr) $17.29 (100%) Number of jobs at or above qualifying wage 642 245 887 Average Wage of jobs at or above qualifying wage $23.31 Notes re: Job Obligations 1. When determining the number of jobs at or above the qualifying wage, wages will include only the regular hourly rate that serves as the base level of compensation. The wage will not include nonregular forms of compensation such as bonuses, unusual overtime pay, commissions, stock options, pension, retirement or death benefits, unemployment benefits or other insurance, or other fringe benefits. 2. Employment Base includes 0 “Retained Jobs”. If the Recipient uses or proposes to use a non-standard work week (8 hours a day, 5 days a week, 52 weeks a year including holidays, vacation and other paid leave), check the box below and describe that alternative schedule. The alternative schedule must meet the requirements of 261 IAC 173.2. If the box is not checked or if no alternative schedule is provided, IEDA will consider “Full-time Equivalent (FTE) Job” to mean the employment of one person for 8 hours per day for a 5-day, 40- hour workweek for 52 weeks per year, including paid holidays, vacations and other paid leave.  The Recipient shall use an alternative work week for purposes of its employees described in the Contract. The alternative work week is as follows: [description]. Sufficient Benefits Deductible Requirements Recipient shall provide Sufficient Benefits with a maximum deductible of $1,250 for single coverage or $2,500 for family coverage. Page 247 of 297 C ITY OF WATER LOO Council Communication R es o lutio n approving F Y 2018-2023 Airport C ap ital Improvement P lan for the Waterlo o R egio nal Airport. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate Airport K aspari, K eith Approved 11/1/2017 - 10:54 AM C lerk O ffice E ven, L eAnn Approved 11/1/2017 - 3:35 P M ATTA C H M EN TS : Description Type AL O - F Y-2018 - 2023 Airport C apital I mprovement P lan C over Memo S UB J E C T:R es o lution approving F Y 2018-2023 Airp o rt C ap ital Improvement P lan fo r the Waterlo o R egio nal Airport. S ub mitted by:S ubmitted By: Keith Kaspari, Airp o rt Direc tor R ec o mmended Ac tio n:Ap p ro ve the AC IP as rec o mmended b y Airp o rt S taff. S ummary S tatement: T his plan c ontinues p revious projec ts and 5-year AC I P p lans fo r the airport, fo r the continued develo p ment of the airs id e infras tructure fo r the Waterloo R egional Airport. Exp enditure R equired : P ending the total funds available, the lo cal matc h c o s ts fo r these p ro jects is histo rically 10%. T he AC I P as attac hed, provid es an Engineer's Es timate of p ro ject c o s ts , inc luding des ign and cons tructio n ad minis tratio n and inspec tion services . S ource o f F und s : T he source of fund s for the projec ts will be via the F ederal Aviation Ad ministratio n's (FAA) Airp o rt Improvement P ro gram (AI P ) at 90%. His toric ally for airp o rts o f our "Hub " c las s ific ation (Waterloo is a P rimary No n-Hub C o mmercial S ervic e Airp o rt), we rec eive on an annual basis $1,000,000 - whereby the C ity of Waterloo p ro vides matc hing fund s of $100,000 to ap p ly then $1.1M fo r the Des ign and C o nstruc tion for p hys ic al imp ro vements to the airp o rt's b as e infras truc ture. T he remaining 10% balance o f the costs will b e borne by the C ity of Waterlo o and the Waterloo R egional Airport. F or the Airp o rt Dep artment, this will then b e - his to rically, via the Airp o rt's P as s enger F ac ility C harge (P F C ). Page 248 of 297 P olic y Issue: T his 5/6 Year Airport C apital Imp ro vement P rogram c o mp lies with the C ity o f Waterlo o 's S trategic P lan, as fo llo ws: G oal No : 2, and S trategy No : 2.2. G oal No : 3, and S trategy No : 3.3, 3.4, and 3.5. G oal No : 4, and S trategy No : 4.5. Alternative: F o r projec t alternatives, S taff, ALO 's C o ns ulting Engineer, and the Airport Board reviewed o ther O p tions or Alternatives , yet this final as rec o mmend ed p lan is the bes t plan moving forward for Waterloo R egional Airp o rt fo r the next 5/6 year term. Background I nformatio n: His toric ally, the Airport Direc tor has not req ues ted sup p o rt o f the C ity C o uncil, nor b y the Airp o rt Board, for 5-Year C apital P lans for the d evelopment of the Airp o rt. As the Airp o rt Directo r, I've b een ab le to take a in-depth lo o k at the pro jec ts o ver the las t 3-years , and working with our c ons ulting engineer, been able to p rio ritize pas t projec ts - yet future p ro jects fo r the 2018 - 2023 term. T herefo re, I believe it is now prud ent and the timing is correc t, to allow the C ity C ounc il and memb ers of the G eneral P ub lic to s ee the future 5/6 year p lan fo r the ongoing airs id e develo p ment o f the Waterlo o R egio nal Airp o rt. Legal Desc riptio ns :No t Applic able fo r this req uest by S taff. Page 249 of 297 P a g e 2 5 0 o f 2 9 7 C ITY OF WATER LOO Council Communication R es o lutio n award ing the recycling p ro cessing fac ility to sup p o rt the C ity of Waterlo o 's C urb s id e R ec yc ling P ro gram b id to C ed ar Valley R ec yc ling & Trans fer o f Waterloo, Io wa in the amo unt o f $32,000, fo r a period o f one (1) year and ap p ro ving contrac t, bond and certificate of insuranc e and authorize the Mayor and C ity C lerk to exec ute s aid doc uments. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate T raffic O perations E ven, L eAnn Approved 11/1/2017 - 3:43 P M C lerk O ffice E ven, L eAnn Approved 11/1/2017 - 3:43 P M S UB J E C T: R es o lution award ing the recycling p ro ces s ing fac ility to sup p o rt the C ity of Waterlo o 's C urbs ide R ecycling P ro gram bid to C ed ar Valley R ec yc ling & Transfer of Waterlo o , Iowa in the amo unt of $32,000, for a period o f one (1) year and approving c o ntract, b o nd and certific ate o f ins urance and autho rize the Mayor and C ity C lerk to exec ute said doc uments. S ub mitted by:S ubmitted By: S andie G rec o , Interim P ub lic Works Direc tor R ec o mmended Ac tio n:Ap p ro ve R es olution S ummary S tatement: T his servic e is fo r provid ing equip ment, s ite s ervice and collec tion/delivery o f materials fro m c urbside containers and the proc es s ing and ultimate marketing and d is p o s al of materials thereby generated . Exp enditure R equired :$32,000.00 S ource o f F und s :S anitation F und ing - 525-15-5400-1300 P olic y Issue: S trategy 3.4 and 3.5 - identify and implement proven cost and resource s aving meas ures and c o ntinue to engage with lo cal p ublic partners to identify cost savings , s treamline effo rts and imp rove effic ienc y in C ity operations and activities . Background I nformatio n:T he C ity of Waterlo o has provid ed c urbs id e rec yc ling for a number o f years. T he vend o r divid es and separates all rec yc lab les . Page 251 of 297 C ITY OF WATER LOO Council Communication R es o lutio n approving F inal Q uantity S ummary fo r a net increase o f $8,007.85 fo r the F Y 2017 S ergeant R o ad Trail Brid ge No. 1 R eplac ement, C o ntract No . 917, and autho rize the Mayor and C ity C lerk to execute s aid d o cument. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate E ngineering T horson, E ric Approved 11/1/2017 - 11:39 AM C lerk O ffice E ven, L eAnn Approved 11/1/2017 - 2:37 P M ATTA C H M EN TS : Description Type C ont 917_F inal Q ty S umm C over Memo S UB J E C T: R es o lution approving F inal Q uantity S ummary fo r a net increase o f $8,007.85 for the F Y 2017 S ergeant R oad Trail Brid ge No . 1 R ep lacement, C o ntract No . 917, and autho rize the Mayor and C ity C lerk to execute s aid d o cument. S ub mitted by:S ubmitted By: Wayne C as tle, P LS , P E, As s oc iate Engineer S ummary S tatement: T his is the ac c umulated amo unt o f adjus tments from o riginal to final q uantities that were d etermined necessary d uring the c o nstruc tion of the p ro ject, whic h res ults in an increase to the total projec t cost. S ource o f F und s :G O Bo nds Page 252 of 297 P a g e 2 5 3 o f 2 9 7 P a g e 2 5 4 o f 2 9 7 C ITY OF WATER LOO Council Communication R es o lutio n approving C ompletio n o f P rojec t and R ec o mmendatio n o f Acc eptanc e of Work for work p erfo rmed by Lo d ge C o nstruc tion, Inc. of C larks ville, Io wa, at a total c os t of $74,163.13 for the F Y 2017 S ergeant R oad Trail Brid ge No . 1 R ep lacement, C o ntract No. 917, and rec eive and file two (2) year maintenance bond . City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate E ngineering T horson, E ric Approved 11/1/2017 - 11:46 AM C lerk O ffice E ven, L eAnn Approved 11/1/2017 - 4:08 P M ATTA C H M EN TS : Description Type C ont 917_M aintenance B ond C over Memo S UB J E C T: R es o lution approving C ompletio n o f P ro jec t and R ec o mmendatio n o f Acc ep tanc e of Work for work performed by Lodge C ons tructio n, Inc . of C larksville, Io wa, at a total c o s t o f $74,163.13 for the F Y 2017 S ergeant R o ad Trail Brid ge No . 1 R ep lacement, C o ntract No. 917, and receive and file two (2) year maintenanc e bond . S ub mitted by:S ubmitted By: Eric T ho rs o n, P E, C ity Engineer S ummary S tatement: Lo d ge C ons truc tio n, Inc . has completed the above referenced p ro ject in acc o rd anc e with the plans and spec ifications . Transmitted als o to the C lerk’s O ffice is the Maintenance Bond that guarantees to remed y any defec ts in workmans hip o r materials that may d evelop in s aid work within a period o f two (2) years from the date of the acc ep tance of the wo rk und er said contrac t. S ource o f F und s :G O Bo nds Page 255 of 297 P a g e 2 5 6 o f 2 9 7 P a g e 2 5 7 o f 2 9 7 C ITY OF WATER LOO Council Communication R es o lutio n approving a P ro fes s io nal S ervic es Agreement with G reat P lains S urvey, Inc . fo r land surveying s ervic es within the No rtheas t Ind ustrial area, in an amo unt not to exceed $34,101, and authorize the Mayo r to exec ute said doc ument. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate P lanning & Z oning F elchle, K elley Approved 11/1/2017 - 4:55 P M C lerk O ffice F elchle, K elley Approved 11/1/2017 - 4:56 P M ATTA C H M EN TS : Description Type N E Industrial P ark S ubdivision B ackup M aterial Agreement B ackup M aterial S UB J E C T: R es o lution approving a P ro fes s io nal S ervic es Agreement with G reat P lains S urvey, Inc . fo r land surveying services within the Northeast Indus trial area, in an amount no t to exc eed $34,101, and autho rize the Mayo r to execute s aid d o cument. S ub mitted by:S ubmitted By: No el Anderson-C o mmunity P lanning and Develo p ment Directo r R ec o mmended Ac tio n:To ap p rove and autho rize the contrac t. S ummary S tatement: T he C ity of Waterlo o c urrently owns 40+ ac res of land near the Northeas t Ind ustrial P ark that is availab le for d evelo p ment. T he C ity o f Waterloo has s een recent interes t in approximately 35 ac res . T he C ity would be working with G reat P lains to p lat and finalize s urvey wo rk that has alread y b een s tarted for the area. Exp enditure R equired :Up to $32,101. S ource o f F und s :T I F P olic y Issue:Econo mic Develo p ment polic y numb er 1, 3 &4 within the S trategic P lan. Alternative:N/A Page 258 of 297 P a g e 2 5 9 o f 2 9 7 P a g e 2 6 0 o f 2 9 7 P a g e 2 6 1 o f 2 9 7 P a g e 2 6 2 o f 2 9 7 P a g e 2 6 3 o f 2 9 7 C ITY OF WATER LOO Council Communication R es o lutio n approving the Agreement for S ub d ivis ion P latting with R o ger T. Kals em, Jeffrey L. S wartzendruber and P atric ia S wartzend ruber, and autho rize the Mayo r and C ity C lerk to execute s aid d o cuments . City Council Meeting: 11/6/2017 Prepared: 10/31/2017 R EV I EWER S : D epartment R eviewer Action D ate P lanning & Z oning S chroeder, Aric Approved 11/1/2017 - 11:20 AM C lerk O ffice E ven, L eAnn Approved 11/1/2017 - 4:30 P M ATTA C H M EN TS : Description Type S ubdiviosn P lat Agreement B ackup M aterial P lat of S urvey of P arcel E B ackup M aterial S UB J E C T: R es o lution approving the Agreement for S ub d ivis ion P latting with R o ger T. Kals em, Jeffrey L. S wartzend ruber and P atric ia S wartzendrub er, and authorize the Mayo r and C ity C lerk to exec ute s aid doc uments. S ub mitted by:S ubmitted By: No el Anderson, C o mmunity P lanning & Develo p ment Directo r R ec o mmended Ac tio n:Ad o p t res olutions approving the agreement, ap p ro ving the varianc e to the s ubdivis ion ordinanc e, and ap p ro ving a p lat o f s urvey. S ummary S tatement: T he C ity of Waterlo o S ub d ivision O rd inanc e requires the p latting of land for d evelopment when s plit more than o nc e fro m an original p arcel in existenc e p rio r to ad o p tion of the S ub d ivision O rdinanc e in 1978. Kals em is p ro p o s ing to s ubdivid e land adjac ent to Timo thy R id ge 2nd Ad d ition. T he S wartzend rubers o wn the p ro p erty at 3308 Bay Berry Drive in Timothy R id ge 2nd Additio n and are proposing to purc has e a p ro p o s ed lot in the p ro p o s ed Kals em s ub d ivision that wo uld adjoin their p ro p erty and wo uld be alo ng an extens ion of Bay Berry Drive. T he S wartzendrub er's are p ro p o s ing to p urc hase the lot prior to it being p latted and sub d ivided as p art o f Kalsem's propos ed s ubdivis io n, and have prepared a P lat of S urvey of the property. T he P lat of S urvey d o es not meet all req uirements o f the S ubdivis ion O rd inance, but the S wartzendrub er's and Kalsem have agreed to the attac hed agreement for S ubdivis ion P latting that will ensure that the p ro p erty in q ues tio n is still includ ed in the propos ed Kals em sub d ivision, ensuring that the extens io n o f Bay Berry Drive and s id ewalk along Bay Berry d rive in front o f the lo t to b e split will be adequately addressed, as well as any utility or d rainage easements needed on the lo t when it is plated as part o f the Kals em s ubdivis io n. In the end, this agreement will ac commodate the timeline to allo w the property to b e c o nveyed to the S wartzendrub er's ahead Page 264 of 297 o f the Kals am s ubdivis io n, but s till ensure that the property will b e included in the subdivis io n with all requirements of the S ubdivis io n O rdinanc e being met when it is inc luded in the future plat. Exp enditure R equired :No ne S ource o f F und s :NA P olic y Issue:Land Us e and P latting Alternative:NA Legal Desc riptio ns :S ee attac hed P lat of S urvey Page 265 of 297 AGREEMENT FOR SUBDIVISION PLATTING This Agreement for Subdivision Platting (the “Agreement”) is entered into as of _________________, 2017, by and among the City of Waterloo, Iowa (“City”), Roger T. Kalsem (“Kalsem”) and Jeffrey L. Swartzendruber and Patricia Swartzendruber, husband and wife (collectively, “Swartzendruber”). RECITALS A. Kalsem is the owner of real property in the Northwest Quarter of Section 12, Township 88 North, Range 12 West of the 5th P.M., Black Hawk County, Iowa, and Swartzendruber owns land adjacent thereto legally described as Lots 14, 15 and 16 of Timothy Ridge Second Addition, City of Waterloo, Black Hawk County Iowa (the “Swartzendruber Land”). B. Kalsem is planning a residential subdivision development on his property, which is currently known as Kalsem’s Second Addition Preliminary Plat as approved by the City of Waterloo City Council on April 10, 2017, and shall be referred to herein as the “Subdivision”, and Swartzendruber desires to purchase that portion thereof that is legally described as set for in Exhibit “A” attached hereto (“Lot 27”) prior to said area being part of a final plat of the Subdivision that is approved by the City of Waterloo and recorded. C. City is willing to approve a Plat of Survey as shown in Exhibit “A” for filing and to grant a variance to the subdivision platting requirements on the terms set forth herein. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises exchanged herein and for other consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Survey. Kalsem has submitted the Plat of Survey to City. City staff have indicated that the Plat of Survey conforms to City requirements for plats of survey that are not subdivision plats, City planning staff will promptly affix the customary stamp and signature to indicate that the Plat of Survey has been reviewed by City, and thereafter City will not impede the further processing of the Plat of Survey or its filing in any county offices. 2. Future Platting. At any future date that Kalsem proposes to final plat land adjoining Lot 27 for the Subdivision, Kalsem and Swartzendruber agree and consent to include Lot 27 in said final plat of the Subdivision. It is understood and agreed that Lot 27 may be renumbered as a different lot number for consistency with the Subdivision. It is agreed that Lot 27 will be part of the Subdivision, and subject to the deed of dedication and restrictive covenants of the Subdivision (including requirements for sidewalk installation adjacent to Lot 27), and Lot 27 will be encumbered with easements and platted building lines consistent with other lots in the Page 266 of 297 2 Subdivision, which is anticipated to include an 8’ drainage and utility easement along the rear (southwesterly) lot line, a 10’ utility easement along the front (northeasterly) lot line, and a 20’ platted building line along the front (northeasterly) lot line. 3. Use Restrictions Until Platted. The parties agree that until such time as Lot 27 is included in a final plat of a Subdivision that is approved by the City of Waterloo and recorded, no buildings or structures shall be erected on Lot 27 and the use of Lot 27 shall be restricted to yard/open space associated with the use of Swartzendruber Land, and Lot 27 shall not be further subdivided or sold in part or in whole, except that Lot 27 and the Swartzendruber Land may be sold as a unified parcel. 3.1. Ordinance Variance. City agrees that, at the earliest possible date, its city council will grant a variance to the subdivision ordinance so that Kalsem and Swartzendruber are relieved of the necessity to satisfy subdivision platting requirements at the present time. 4. Entire Agreement; Modification. This Agreement constitutes the entire agreement among the parties pertaining to the subject matter hereof. All exhibits hereto, if any, are hereby incorporated into and made a part of this Agreement. This Agreement may not be modified or amended except pursuant to a written instrument executed by all parties. 5. Binding Effect; Successors. The provisions of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. This Agreement is intended to run with the land. 6. Counterparts. This Agreement may be executed in any number of counterparts, each of which, including signed counterparts transmitted by facsimile or other electronic means, shall be deemed an original and all of which together shall constitute one and the same instrument. 7. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person or by United States registered or certified mail, postage prepaid and addressed: KALSEM SWARTZENDRUBER CITY OF WATERLOO Roger Kalsem Jeff and Pat Swartzendruber City of Waterloo 191 Belle Street 3308 Bay Berry Drive Planning Department Waterloo, Iowa 50702 Waterloo, Iowa 50702 Attn: Noel Anderson 715 Mulberry Street Waterloo, Iowa 50703 Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, or (ii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid. Page 267 of 297 3 IN WITNESS WHEREOF, the parties have executed this Agreement for Subdivision Platting by their duly authorized representatives as of the date first written above. KALSEM CITY OF WATERLOO, IOWA By: _______________________________ By: _______________________________ Roger T. Kalsem Quentin Hart, Mayor SWARTZENDRUBER Attest: _____________________________ Kelley Felchle, City Clerk By: _______________________________ Jeffrey L. Swartzendruber By: _______________________________ Patricia Swartzendruber STATE OF IOWA ) ) ss. BLACK HAWK COUNTY ) Acknowledged before me by Roger T. Kalsem on __________________, 2017. ___________________________________ Notary Public STATE OF IOWA ) ) ss. BLACK HAWK COUNTY ) Subscribed and sworn to me by Jeffrey L. Swartzendruber and Patricia Swartzendruber, husband and wife, on __________________, 2017. ___________________________________ Notary Public Page 268 of 297 4 STATE OF IOWA ) ) ss. BLACK HAWK COUNTY ) On this _________ day of __________ 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 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 Page 269 of 297 P a g e 2 7 0 o f 2 9 7 P a g e 2 7 1 o f 2 9 7 C ITY OF WATER LOO Council Communication R es o lutio n approving a variance to the requirements o f the S ubdivis io n O rd inanc e in S ectio n 11-3-2 P reliminary P lats and S ectio n 11-3-3 F inal P lats , relating to ap p ro val o f a P lat of S urvey o f P arc el E lo cated ad jacent to the p ro p o s ed extens io n o f Bay Berry Drive. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate C ommunity D evelopment E ven, L eAnn Approved 11/1/2017 - 4:26 P M ATTA C H M EN TS : Description Type P lat of S urvey B ackup M aterial S UB J E C T: R es o lution approving a variance to the req uirements o f the S ubdivis io n O rdinanc e in S ectio n 11-3-2 P reliminary P lats and S ectio n 11-3-3 F inal P lats, relating to ap p ro val o f a P lat o f S urvey o f P arc el E lo cated adjac ent to the propos ed extens io n o f Bay Berry Drive. S ub mitted by:S ubmitted By: No el Anderson, C o mmunity P lanning & Develo p ment Directo r R ec o mmended Ac tio n:Ad o p t res olutions approving the agreement, ap p ro ving the varianc e to the s ubdivis ion ordinanc e, and ap p ro ving a p lat o f s urvey. S ummary S tatement: T he C ity of Waterlo o S ub d ivision O rd inanc e requires the p latting of land for d evelopment when s plit more than o nc e fro m an original p arcel in existenc e p rio r to ad o p tion of the S ub d ivision O rdinanc e in 1978. Kals em is p ro p o s ing to s ubdivid e land adjac ent to Timo thy R id ge 2nd Ad d ition. T he S wartzend rubers o wn the p ro p erty at 3308 Bay Berry Drive in Timothy R id ge 2nd Additio n and are proposing to purc has e a p ro p o s ed lot in the p ro p o s ed Kals em s ub d ivision that wo uld adjoin their p ro p erty and wo uld be alo ng an extens ion of Bay Berry Drive. T he S wartzendrub er's are p ro p o s ing to p urc hase the lot prior to it being p latted and sub d ivided as p art o f Kalsem's propos ed s ubdivis io n, and have prepared a P lat of S urvey of the property. T he P lat of S urvey d o es not meet all req uirements o f the S ubdivis ion O rd inance, but the S wartzendrub er's and Kalsem have agreed to the attac hed agreement for S ubdivis ion P latting that will ensure that the p ro p erty in q ues tio n is still includ ed in the propos ed Kals em sub d ivision, ensuring that the extens io n o f Bay Berry Drive and s id ewalk along Bay Berry d rive in front o f the lo t to b e split will be adequately addressed, as well as any utility or d rainage easements needed on the lo t when it is plated as part o f the Kals em s ubdivis io n. In the end, this agreement will ac commodate the timeline to allo w the property to b e c o nveyed to the S wartzendrub er's ahead o f the Kals am s ubdivis io n, but s till ensure that the property will b e included Page 272 of 297 in the subdivis io n with all requirements of the S ubdivis io n O rdinanc e being met when it is inc luded in the future plat. Exp enditure R equired :No ne S ource o f F und s :NA P olic y Issue:Land Us e and P latting Alternative:NA Legal Desc riptio ns :S ee attac hed P lat of S urvey Page 273 of 297 asn sJapJoaaJ / 4Uno3 Jo; pa, uasaj 0w0WJ x w0 c) E o ••= c C vo < Z fl-'- E E coo • c) ') o co 4- w U m a7 Li_ COCD( oZY 1) ` m N Q a`) W• -`)= rUr» Ct T E ma) nU a) cn u c) Wo C0 7 ? T a) c Z d 0G7Cl? co [ 1 0UaO3a) a) a) cnatcThisPlatorSubdivi TIMOTHYRIDGEADDITION" 1 `. o_ 1- OJ A3EE) No O JW0dO Q O 1= 0 a W0Z O Q N JCO W I- 1)> LLJ v Y UNPLATTED" o W Qco WU) iw v z w ow 1 Q } Qc3U Q d wC5 Ce F 0 o -- Lo $ 631 i ee 041;" , l': r' 13'\ S ' a. 0LLn0 r iEARINGSAREASSUMED 0Oct 0 r BAYBERRYDR. CC Q CO CO osi LLIuJ : EL o z00w Q J W N LLJ NHz1- z m z 0 0o 0wco1- OJ i 7 02cEc Q 1-: x J- LLI w Z e(?) M Z• O -,-- i- I-- 0 . n 51-: + I --- CL F- 0 W m3 NN 0 u") ZL uj btlFSo W No w Q N 11 O L~ J N 0 X __ jr.__ mrn Lc._ C. CC Lo D 2 - o 2— O Owce0Fii vRVE1jh o cw , 00,.,, 2p Om0 9 `° n - p 4 Z C aCOCO U0 0 < 0 O eL J In w r n1Ln 11a 6. j7 W O w OkrLiaZCL iCQ' 101wawa0 II Q v00 0 0 cc di z O J co 0w( coo f 0 0 Lha CD 0 m'_ aQ 9 co 0 Page 274 of 297 CURVETABLE DELTAANGLE 4°01'50" (4°01' LC) NLC) v 31°52' (31°52'00') 26°53Y2' (40") CHORDBEARING N530373/4 W (N 54°38'5 N57°06' W (N57°31'40 N73°33%' W(N 74°2020" W N77°03%1E (N 76°16'E) CHORDLENGTHARCLENGTH 0M ccd C) 75) Nti 0CO U) D LOMco c0co 0M OO WU U NU MU UL a co C co o ` _ ( 7) coco.. N C L N a) U N L... O : L -..- CO N W_ C' c W - N Z LE o C cU W O L\() 0_ oziO Co t t Opp O 0 ( o ° CO C O CCr) CO- \ E m E a) - a a) . c 0 — U' i ifi t O - t O_ - 0 0 . O O Z Z ca O cfl O o a) ' o co .- iJ • Q O U O • O" W C CO Z Z CO Z OJ O • CO . gyLpJ0LLJ - C Bpp CO p o QCe W o co a 0 d C O O° U • N LL ' U = O A coCa) O.,- c c L — 0) 67 O-;, 17; - 5 - D i WZ 0p c W ( o co + rt - (). O y IX N LE Q ( N co O o n - C CO O - C E LL Cn Cr _ 0 = mCD ( J L--' •- CNV. O Z a) O U a) _ O o rn • ti c`.) V) L( NI Ili - oto O Ola) L C d Z o 3 c) V w ci) o W a) Z 2 . E a) O - 4 ;= a) a) C4 - c OC U" U U O F- o E) 5 o ac) o 2 aa)) aa)i J J =' -' O CO C ..--. O N ' 1 ..-- o a OA• U O Ua) T) - ' a - P2 "= C C O O a HZ2 Q 0 OO) O IS C — () 0 C) Sri cri O 1- c o a) ® 0) U . E E ico co o0 co O co00ca0E Oo Cco O 0 C ( ( 1) co co a v7o a) O 0 n O 0 a Z co o N C O 0_ i a) J ' C O Oo CO - 0 < U 0 2 0 N• LE Z' 0) 4- E O ` O o >,..... U N 4) C0 N C W - O CCCOCCO o 12 O O > ti s OD Oo ao2) 0 cc) a te, U),_ ( J) _ c ca O 2 O a) - C '- C F- Z a) CO U . O j a> U a) O in a 0 a 0 a 47 r d 0at7z00< Cr 2. W J 0d _ J UJ 0 Lc)) o) L - co 11 a( fl — >- Ow Lu CZZZOA OJ J0CLItykL0_ N O Li' a ca av0Z0ce0 c W W 0 J V) Q' (. 0 0- 0 o 0 z Page 275 of 297 C ITY OF WATER LOO Council Communication R es o lutio n approving the req uest by Jeffrey L. S wartzendrub er and P atricia S wartzend ruber to ap p ro ve a P lat o f S urvey of P arc el E lo cated adjac ent to the propos ed extension of Bay Berry Drive. City Council Meeting: 11/6/2017 Prepared: 11/1/2017 R EV I EWER S : D epartment R eviewer Action D ate C ommunity D evelopment E ven, L eAnn Approved 11/1/2017 - 4:23 P M ATTA C H M EN TS : Description Type P lat of S urvey B ackup M aterial S UB J E C T: R es o lution approving the req uest by Jeffrey L. S wartzendrub er and P atric ia S wartzend ruber to ap p ro ve a P lat of S urvey of P arcel E loc ated ad jacent to the propos ed extens io n o f Bay Berry Drive. S ub mitted by:S ubmitted By: No el Anderson, C o mmunity P lanning & Develo p ment Directo r R ec o mmended Ac tio n: T he C ity of Waterlo o S ub d ivision O rd inanc e requires the p latting of land for d evelopment when s plit more than o nc e fro m an original p arcel in existenc e p rio r to ad o p tion of the S ub d ivision O rdinanc e in 1978. Kals em is p ro p o s ing to s ubdivid e land adjac ent to Timo thy R id ge 2nd Ad d ition. T he S wartzend rubers o wn the p ro p erty at 3308 Bay Berry Drive in Timothy R id ge 2nd Additio n and are proposing to purc has e a p ro p o s ed lot in the p ro p o s ed Kals em s ub d ivision that wo uld adjoin their p ro p erty and wo uld be alo ng an extens ion of Bay Berry Drive. T he S wartzendrub er's are p ro p o s ing to p urc hase the lot prior to it being p latted and sub d ivided as p art o f Kalsem's propos ed s ubdivis io n, and have prepared a P lat of S urvey of the property. T he P lat of S urvey d o es not meet all req uirements o f the S ubdivis ion O rd inance, but the S wartzendrub er's and Kalsem have agreed to the attac hed agreement for S ubdivis ion P latting that will ensure that the p ro p erty in q ues tio n is still includ ed in the propos ed Kals em sub d ivision, ensuring that the extens io n o f Bay Berry Drive and s id ewalk along Bay Berry d rive in front o f the lo t to b e split will be adequately addressed, as well as any utility or d rainage easements needed on the lo t when it is plated as part o f the Kals em s ubdivis io n. In the end, this agreement will ac commodate the timeline to allo w the property to b e c o nveyed to the S wartzendrub er's ahead o f the Kals am s ubdivis io n, but s till ensure that the property will b e included in the subdivis io n with all requirements of the S ubdivis io n O rdinanc e being met when it is inc luded in the future plat. Exp enditure R equired :No ne Page 276 of 297 S ource o f F und s :NA P olic y Issue:Land Us e and P latting Alternative:NA Legal Desc riptio ns :S ee attac hed P lat of S urvey Page 277 of 297 asn sJapJoaaJ / 4Uno3 Jo; pa, uasaj 0w0WJ x w0 c) E o ••= c C vo < Z fl-'- E E coo • c) ') o co 4- w U m a7 Li_ COCD( oZY 1) ` m N Q a`) W• -`)= rUr» Ct T E ma) nU a) cn u c) Wo C0 7 ? T a) c Z d 0G7Cl? co [ 1 0UaO3a) a) a) cnatcThisPlatorSubdivi TIMOTHYRIDGEADDITION" 1 `. o_ 1- OJ A3EE) No O JW0dO Q O 1= 0 a W0Z O Q N JCO W I- 1)> LLJ v Y UNPLATTED" o W Qco WU) iw v z w ow 1 Q } Qc3U Q d wC5 Ce F 0 o -- Lo $ 631 i ee 041;" , l': r' 13'\ S ' a. 0LLn0 r iEARINGSAREASSUMED 0Oct 0 r BAYBERRYDR. CC Q CO CO osi LLIuJ : EL o z00w Q J W N LLJ NHz1- z m z 0 0o 0wco1- OJ i 7 02cEc Q 1-: x J- LLI w Z e(?) M Z• O -,-- i- I-- 0 . n 51-: + I --- CL F- 0 W m3 NN 0 u") ZL uj btlFSo W No w Q N 11 O L~ J N 0 X __ jr.__ mrn Lc._ C. CC Lo D 2 - o 2— O Owce0Fii vRVE1jh o cw , 00,.,, 2p Om0 9 `° n - p 4 Z C aCOCO U0 0 < 0 O eL J In w r n1Ln 11a 6. j7 W O w OkrLiaZCL iCQ' 101wawa0 II Q v00 0 0 cc di z O J co 0w( coo f 0 0 Lha CD 0 m'_ aQ 9 co 0 Page 278 of 297 CURVETABLE DELTAANGLE 4°01'50" (4°01' LC) NLC) v 31°52' (31°52'00') 26°53Y2' (40") CHORDBEARING N530373/4 W (N 54°38'5 N57°06' W (N57°31'40 N73°33%' W(N 74°2020" W N77°03%1E (N 76°16'E) CHORDLENGTHARCLENGTH 0M ccd C) 75) Nti 0CO U) D LOMco c0co 0M OO WU U NU MU UL a co C co o ` _ ( 7) coco.. N C L N a) U N L... O : L -..- CO N W_ C' c W - N Z LE o C cU W O L\() 0_ oziO Co t t Opp O 0 ( o ° CO C O CCr) CO- \ E m E a) - a a) . c 0 — U' i ifi t O - t O_ - 0 0 . O O Z Z ca O cfl O o a) ' o co .- iJ • Q O U O • O" W C CO Z Z CO Z OJ O • CO . gyLpJ0LLJ - C Bpp CO p o QCe W o co a 0 d C O O° U • N LL ' U = O A coCa) O.,- c c L — 0) 67 O-;, 17; - 5 - D i WZ 0p c W ( o co + rt - (). O y IX N LE Q ( N co O o n - C CO O - C E LL Cn Cr _ 0 = mCD ( J L--' •- CNV. O Z a) O U a) _ O o rn • ti c`.) V) L( NI Ili - oto O Ola) L C d Z o 3 c) V w ci) o W a) Z 2 . E a) O - 4 ;= a) a) C4 - c OC U" U U O F- o E) 5 o ac) o 2 aa)) aa)i J J =' -' O CO C ..--. O N ' 1 ..-- o a OA• U O Ua) T) - ' a - P2 "= C C O O a HZ2 Q 0 OO) O IS C — () 0 C) Sri cri O 1- c o a) ® 0) U . E E ico co o0 co O co00ca0E Oo Cco O 0 C ( ( 1) co co a v7o a) O 0 n O 0 a Z co o N C O 0_ i a) J ' C O Oo CO - 0 < U 0 2 0 N• LE Z' 0) 4- E O ` O o >,..... U N 4) C0 N C W - O CCCOCCO o 12 O O > ti s OD Oo ao2) 0 cc) a te, U),_ ( J) _ c ca O 2 O a) - C '- C F- Z a) CO U . O j a> U a) O in a 0 a 0 a 47 r d 0at7z00< Cr 2. W J 0d _ J UJ 0 Lc)) o) L - co 11 a( fl — >- Ow Lu CZZZOA OJ J0CLItykL0_ N O Li' a ca av0Z0ce0 c W W 0 J V) Q' (. 0 0- 0 o 0 z Page 279 of 297 C ITY OF WATER LOO Council Communication An o rd inance amend ing O rd inance No . 5079, as amended, C ity o f Waterlo o Zoning O rd inance, by amending the O fficial Zoning Map referred to in S ection 10-4-4, approving a rezo ne of c ertain p ro p erty, loc ated wes t o f 2010 W. R idgeway Avenue City Council Meeting: 11/6/2017 Prepared: 10/23/2017 R EV I EWER S : D epartment R eviewer Action D ate C lerk O ffice H igby, Nancy Approved 10/23/2017 - 11:57 AM ATTA C H M EN TS : Description Type R ezone M -2P to B P B ackup M aterial S UB J E C T: Motio n to rec eive, file and cons id er for the third time and adopt an o rd inance amend ing O rd inance No . 5079, as amended, C ity o f Waterloo Zo ning O rd inance, by amend ing the O ffic ial Zo ning Map referred to in S ectio n 10-4-4, approving a rezo ne o f c ertain p ro p erty, loc ated west of 2010 W. R idgeway Avenue. S ub mitted by:S ubmitted By: No el Anderson, C o mmunity P lanning & Develo p ment Directo r R ec o mmended Ac tio n:Ap p ro ve third read ing and adopt ordinanc e. S ummary S tatement: Transmitted herewith is a R eq uest by the I s lamic F o und ation of Iowa, I nc . to rezo ne approximately 8.25 acres fro m “M-2,P ” P lanned Ind ustrial Dis tric t to “B-P ” Bus ines s P ark Dis tric t, loc ated Wes t o f 2010 West R idgeway Avenue. Exp enditure R equired :No ne. S ource o f F und s :No ne required . P olic y Issue: G oal 1 S up p o rt the c reation of new, livable wage jobs tho ugh a balanced econo mic develo p ment approac h o f assis ting exis ting bus inesses, fostering s tart-ups, attrac ting new emp lo yers and c ultivating an adequate workforc e. Legal Desc riptio ns :PART O F S W S E DES C AS BEG S E C O R T H W 475 F T T H N 790 F T T H E 475 F T T H S 790 F T T O P T O F BEG S EC 32 T 89 R 13 Page 280 of 297 September 12, 2017 West of 2010 West Ridgeway Ave. rezone from “M-2,P” to “B-P” REQUEST: Request by the Islamic Foundation of Iowa, Inc. to rezone approximately 8.25 acres from “M-2,P” Planned Industrial District to “B-P” Business Park District, located West of 2010 West Ridgeway Avenue. APPLICANT: Islamic Foundation of Iowa, Inc., 330 South Street, Waterloo, IA 50701 GENERAL DESCRIPTION: The applicant is requesting to rezone the property in question to construct a daycare facility, play area, utility garage, Community Centre/Gym, and Islamic Centre/School. The first phase of the project will only consist of constructing a 6,400 square foot daycare facility, 80’ X 40’ play area, and 16-stall parking lot. The second phase will consist of a 5,000 square foot community Centre/Gym, a 7,000 square foot Islamic Centre/School, and utility garage. IMPACT ON NEIGHBORHOOD & SURROUNDING LAND USE: The request would not appear to have a negative impact on the neighborhood which consists of the Katoski Greenbelt to the north and west, the future Kwik Star Fuel Blending Facility to the east, and vacant land to the south which is also zoned “B-P” Business Park District. VEHICULAR & PEDESTRIAN TRAFFIC CONDITIONS: The request would not appear to have a negative impact on vehicular or pedestrian traffic movements in the area. The site is served by West Ridgeway Avenue, which is classified as a Minor Arterial. RELATIONSHIP TO RECREATIONAL TRAIL PLAN AND COMPLETE STREETS POLICY: There are currently no sidewalks located along West Ridgeway Avenue. A recreational trail is anticipated to be constructed along the south side of West Ridgeway Avenue in the future. ZONING HISTORY FOR SITE AND IMMEDIATE VICINITY: The area of the proposed site is currently zoned “M-2,P” Planned Industrial District. The site was rezoned from “A-1” Agricultural District to “M-2,P” Planned Industrial District on 11/01/1999. North – Katoski Greenbelt, zoned “A-1” Agricultural District. South – Vacant Commercial Property, zoned “B-P” Business Park District East – Vacant Industrial Property, zoned “M-2,P” Planned Industrial District. West – Katoski Greenbelt, zoned “A-1” Agricultural District. DEVELOPMENT HISTORY: The Katoski Greenbelt is located to the west and north of the site, which is not anticipated to be developed in the future, as most of it is located within the floodplain. The future Kwik Star Fuel Blending Facility will be located to the east. Future commercial business development is anticipated to occur to the south along West Ridgeway Avenue. The request for the construction of a daycare and future phases of the Islamic Center Development would not appear to have a negative impact on the surrounding area, however the Page 281 of 297 September 12, 2017 West of 2010 West Ridgeway Ave. rezone from “M-2,P” to “B-P” applicant still needs to be cognizant of the industrial nature, intended use, and design of nearby properties. BUFFERS/ SCREENING REQUIRED: No Buffering will be required. DRAINAGE: It will be necessary that a storm water detention plan is submitted to the Engineering Department for review and approval prior to the issuance of a building permit. The proposed request would not appear to have a negative impact upon drainage in the area if proper storm water detention techniques are put in place. FLOODPLAIN: The property is located within a Zone A (100-year floodplain), Zone X (500-year floodplain), and non-floodplain. The area for the proposed daycare facility is not located in a special flood hazard area per the Federal Insurance Administration's Flood Insurance Rate Map, Community Number 190025 and Panel Number 0282F, dated July 18, 2011. PUBLIC /OPEN SPACES/ SCHOOLS: The Katoski Greenbelt is located to the west and north of the site. No schools are located in the immediate vicinity. UTILITIES: WATER, SANITARY SEWER, STORM SEWER, ETC: The closest sewer line to the property in question is an 8” line that runs within West Ridgeway Avenue, but stops 1,350’ to the east at Martin Road. This sewer line will be extended to connect with the future Kwik Star Fuel Blending Facility, but it will not be extended to the Islamic Community Center site. The applicant at this time intends to build a sewer septic system. The area does not contain any storm water infrastructure, but it does contain a 20” water main that runs along the south side of West Ridgeway Avenue. RELATIONSHIP TO COMPREHENSIVE LAND USE PLAN: The Future Land Use Map designates this area as Industrial. Land to the north and west is designated Parks, Open Spaces, Airport, Government Facilities, and Public Spaces. Land to the south is designated as Business Park, Professional Offices, Commercial, and Compatible Light Industrial. Land to the east is designated as Industrial. The proposed use appears to be compatible with the comprehensive plan. The site is also located within the Primary Growth Area on the City of Waterloo’s Growth Map. STAFF ANALYSIS – ZONING ORDINANCE: The applicant is requesting to rezone 8.25 acres from “M-2,P” Planed Industrial District to “B-P” Business Park District. The intention of the rezoning request is to provide the Islamic Foundation of Iowa, Inc. greater flexibility in regards to phasing its development. The site previously received special permit approval by the Board of Adjustment on April 9, 2007 to build an Islamic Community Center with a Mosque, and other related facilities under one roof. The Islamic Foundation of Iowa now intends to have the Islamic Community Center built in phases that will be comprised of separate buildings. The first phase will consist of a 6,400 square foot daycare Page 282 of 297 September 12, 2017 West of 2010 West Ridgeway Ave. rezone from “M-2,P” to “B-P” facility, 3,200 square foot play area, and a 16-stall parking lot. The second phase will consist of a 5,000 square foot Community Centre/Gym, a 7,000 square foot Islamic Centre/School, and utility garage. Parking will need to be noted on the site plan when the Islamic Community Center gets ready to construct its second phase. A Islamic Community Center is a permitted use in the “M-2,P” Planned Industrial District, subject to special permit approval, which was received in 2007. Unfortunately, a stand-alone daycare or school building is not a permitted use within the “M-2,P” Planned Industrial District. The rezoning of the land from “M-2,P” to “B-P” Business Park District will enable the Islamic Foundation of Iowa, Inc. to better phase its Islamic Community Center development. A daycare, school, and Community Centre/Gym Islamic Centre/School are permitted uses under the Business Park District. Land to the south of the site is also zoned Business Park District. The rezoning of the site would be in character with the neighborhood. STAFF ANALYSIS – SUBDIVISION ORDINANCE: The applicant is not planning to subdivide the property. TECHNICAL REVIEW COMMITTEE Lori Glover with the Black Hawk County Office of Emergency Management expressed concerns regarding a portion of the site being located in the 100-year floodplain. The City of Waterloo Planning Staff however, noted that the proposed daycare facility will not be built in the 100-year floodplain. Members of the Technical Review Committee expressed concerns regarding the close proximity of the proposed day care to the soon to be constructed Kwik Trip Fuel Blending Facility and asked if the applicant has looked at the possibility of having sanitary s ewer connected to the site. The City of Waterloo Planning Staff indicated they are only planning on having a sewer septic system installed on the site at this time. The proposed daycare facility will be located 700 feet to the west of the Kwik Trip Fuel Blending Facility and there are trees located between the two sites to act as a buffer. A representative with the Kwik Trip indicated that there are numerous safety measures that will be incorporated into the design of the tanks to mitigate any potential impacts and limit potential damage to the site itself. In addition the fueling tanks are located within a containment wall in case of any spillage or faults with the tanks. Page 283 of 297 September 12, 2017 West of 2010 West Ridgeway Ave. rezone from “M-2,P” to “B-P” STAFF RECOMMENDATION: Therefore, staff recommends that the request to rezone approximately 8.25 acres from “M-2,P” Planned Industrial District to “B-P” Business Park District 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 will better enable the applicant to phase its development as funding and timing allows. And with the following conditions(s): 1. That the final site plan meets all applicable city codes, regulations, etc. including, but not limited to, parking, landscaping, screening, drainage, etc., except as specifically altered though the site plan approval process. Page 284 of 297 T I T A N T R ATHENS DR G R E Y H O U N D D R W. RIDGEWAY AVEW. RIDGEWAY AVE W. RIDGEWAY AVE W. RIDGEWAY AVE T I T A N T R W. RIDGEWAY AVE ATHENS DR AT HENS DR G R E Y H O U N D D R City of Waterloo Planning, Programming and Zoning CommissionSeptember 12, 2017 W of 2010 West Ridgeway AvenueRezone M-2,P to B-PIbrahim Shehata 300 0 300150Feet µ Proposed Rezone Area 2010 West Ridgeway Avenue Page 285 of 297 63 G R E Y H O U N D D R . CYCLONE DR. K A T O S K I D R . MARTIN RD. M A R T I N R D . 63 M A R N I E A V E . KINGSWOOD PL. A-1 B-P M-1 M-1 M-2,P M-2,P A-1 R-3 A-1 R-4 R-4 M-2,P M-1 R-4,R-P A-1 R-R M-1 A-1 R-2,C-Z R-2 City of Waterloo Planning, Programming and Zoning CommissionSeptember 12, 2017 W of 2010 West Ridgeway AvenueRezone M-2,P to B-PIbrahim Shehata 800 0 800400Feet µ ^ Page 286 of 297 P a g e 2 8 7 o f 2 9 7 P a g e 2 8 8 o f 2 9 7 P a g e 2 8 9 o f 2 9 7 P a g e 2 9 0 o f 2 9 7 C ITY OF WATER LOO Council Communication C o mmunication from the Leisure S ervices Department on the notice o f the c o nc lus ion of emp lo yment for Jo e Mc C racken, G olf Maintenanc e I I, effec tive S ep tember 29, 2017 with rec ommend ation of ap p ro val o f payout o f $4,137.71 fo r unus ed benefits. City Council Meeting: 11/6/2017 Prepared: R EV I EWER S : D epartment R eviewer Action D ate H uman Resources D unn, Lance Approved 10/31/2017 - 5:52 P M C lerk O ffice H igby, Nancy Approved 10/31/2017 - 5:55 P M ATTA C H M EN TS : Description Type S UB J E C T: C o mmunic ation from the Leisure S ervices Department on the notice of the conclus ion of emp lo yment fo r Joe Mc C rac ken, G olf Maintenanc e I I, effective S eptemb er 29, 2017 with recommendatio n o f approval of p ayo ut of $4,137.71 for unus ed b enefits . S ub mitted by:S ubmitted By: Page 291 of 297 P a g e 2 9 2 o f 2 9 7 C ITY OF WATER LOO Council Communication C o mmunication from the Waterloo P ublic Lib rary Dep artment o n the no tic e o f the conclus io n o f employment fo r Michael J. Dargan, Tec hnical S ystems & R eferenc e Ad ministrator, effec tive S eptemb er 29, 2017 with recommend atio n o f approval of p ayout o f $10,342.75 for unused b enefits . City Council Meeting: 11/6/2017 Prepared: R EV I EWER S : D epartment R eviewer Action D ate H uman Resources D unn, Lance Approved 10/31/2017 - 5:52 P M C lerk O ffice H igby, Nancy Approved 10/31/2017 - 5:55 P M ATTA C H M EN TS : Description Type M ichael J . D argan P ayout C over Memo S UB J E C T: C o mmunic ation from the Waterloo P ublic Lib rary Dep artment o n the notic e o f the conc lus ion of emp lo yment fo r Mic hael J. Dargan, Tec hnical S ystems & R eferenc e Adminis trato r, effective S eptemb er 29, 2017 with recommendatio n o f approval of p ayout of $10,342.75 for unused b enefits . S ub mitted by:S ubmitted By: Page 293 of 297 P a g e 2 9 4 o f 2 9 7 C ITY OF WATER LOO Council Communication Waterlo o Water Wo rks Board o f Trus tees meeting minutes of O c tober 18, 2017 o n file in the Waterlo o C ity C lerk’s o ffice. City Council Meeting: 11/6/2017 Prepared: 10/31/2017 R EV I EWER S : D epartment R eviewer Action D ate Water Works M ahler, M att Approved 10/31/2017 - 5:14 P M C lerk O ffice H igby, Nancy Approved 10/31/2017 - 5:48 P M ATTA C H M EN TS : Description Type L E G AL N O T I C E O F M I N U T E S - O C T O B E R 2017 C over Memo S UB J E C T:Waterlo o Water Wo rks Board o f Trus tees meeting minutes of O c tober 18, 2017 on file in the Waterlo o C ity C lerk’s offic e. S ub mitted by:S ubmitted By:Matt Mahler, G eneral Manager Page 295 of 297 Board of Water Works Trustees held their regular meeting on Wednesday, October 18, 2017, with Terry Kuntz, Chairman; Mary Potter, Vice-Chair; and Scott Wienands, Trustee; present. Also in attendance: Rick Wilberding, Distribution Department Manager, and Matthew L. Mahler, General Manager and Secretary. The Board approved to adopt: the agenda; the minutes of the regular meeting of September 15, 2017; the Monthly Financial Report; the Monthly Revenue and Expense Summary; a resolution to cause $1,384.89 for service line repair to be assessed to the property taxes of 929 Grant Avenue; a motion to receive and place on file proof of publication of notice of public hearing for the Dysart Road Water Main Replacement Project, to open the public hearing, to declare the hearing closed with no written or oral comments, a resolution to confirm approval of bid documents, plans, specifications, form of contract, etc., a resolution to award the contract to Ricklefs Excavating, Ltd., and to authorize the General Manager to execute the appropriate documents; a motion to receive and place on file the 2016 Audit Report of the Waterloo Water Works; a motion to set the date of Public Hearing as the November 2017 Board of Trustees meeting to adopt the 2018 Budget ; and to set the date of the next regular Board meeting as Wednesday, November 22, 2017 at 8:00 a.m. Payment of the following bills: Acco Unlimited Supplies 16,937.80 Advanced Systems Services 144.13 AECOM Services 4,304.73 Al Gordon Plumbing & Heating Repairs 750.00 All Star Plumbing & Heating Repairs 632.50 Aramark Uniform Services 387.22 Aspro Supplies 1,348.65 AWWA Membership Dues 90.00 AWWA Standards Update Renewal 767.00 BerganKDV Services 100.00 Black Hawk County Auditor Water & Sewer Bond 4,240.65 Black Hawk Electrical Services 153.45 Black Hawk Waste Disposal Services 104.00 BMC Aggregates Supplies 4,107.19 BRB Lawn and Snow Services 791.25 Campbell Supply Supplies 126.22 Cedar Valley Sportsplex Payroll Deduction 224.04 Cedar Valley United Way Payroll Deduction 97.50 CenturyLink Services 212.74 Charles Schwab Institutional Pension 47,314.40 City of Raymond Sewer, Garbage & Yard Waste 21,811.27 City of Waterloo Sewer, Garbage & Storm Water 956,519.15 Clapsaddle-Garber Assoc. Services 9,115.00 Cogsdale Corp. CIS Project 3,217.50 Courier Communications Legal Ads 204.00 Crossroads Auto Repair Services & Repairs 3,874.78 D & J Oil Co. Supplies 1,765.16 Dex Media East Services 33.50 Electrical Engineering & Equipment Services 900.00 EMA, Inc. Consulting Services 310.00 Firestone Store Supplies 638.83 Frickson Bros. Excavating Repairs 2,737.50 Gierke-Robinson Supplies 177.20 Hogan & Hansen Services 719.10 Iowa Assoc. of Water Agencies Conference 110.00 Iowa Dept. of Public Health Backflow Tester Renewals 1,008.00 Iowa Municipalities Worker’s Compensation Assoc. Insurance 4,249.00 Iowa One Call Services 641.70 Iowa Section – AWWA Conference 240.00 Page 296 of 297 IPERS Pension 22,486.63 IWI Motor Parts Supplies 15.26 K & R Consulting Group Services 140.00 Kerns, Steve Reimbursement 50.00 Keystone Lab Testing 2,224.40 Kwik Trip Fuel 3,560.48 Larson, Travis Reimbursement 50.00 Lehman Trucking & Excavating Services 4,800.00 Lodge Construction Project 5,874.40 Mahler, Matthew L. Reimbursement 273.48 Menards Supplies 710.90 MidAmerican Energy Gas, Power & Electric 51,735.96 O’Connor, Pam Reimbursement 22.15 Payroll 107,654.69 PDCM Insurance Insurance 43.00 Postmaster Postage 1,863.40 PPG Architectural Finishes Supplies 192.69 Professional Office Services Services 9,806.62 Public Employees Credit Union Payroll Deduction 9,455.00 Quam Trucking Supplies 4,800.00 R Company Repairs 2,840.00 Radio Communications Services 126.00 Ramsey Truck and Auto Repair Services 90.00 Ratkovich, Mary Reimbursement 34.31 Ray Mount Wrecker Service Services 45.00 Refunds 3,054.49 Rochester Armored Car Services 469.52 Schimberg Co. Supplies 1,618.84 Sensus USA, Inc. Supplies 8,400.00 SJE-Rhombus Services 2,517.20 State of Iowa Treasurer Sales Tax 41,686.00 Storey Kenworthy Supplies 2,008.85 Sun Life Financial Insurance 7,653.97 Swisher & Cohrt, P.L.C. Legal Services 869.50 Teamsters Local Union #238 Payroll Deduction 997.00 Thompson Truck & Trailer Services 4,598.06 Titan Machinery Services 1,157.44 Torney’s Electric Motor Service Services 75.00 Treasurer, State of Iowa State Tax 13,017.00 U.S. Cellular Services 79.24 UnityPoint Clinic-Occupational Medicine Services 37.00 US Dept. of Treasurer Federal Tax 74,238.24 Utility Equipment Supplies 1,419.36 Van Wert Inc. Services 6,144.60 Voya Institutional Trust Payroll Deduction 7,954.00 Waterloo Water Works Reimbursement 10,014.38 Wellmark Blue Cross Blue Shield Insurance 52,994.17 Wilberding, Rick Reimbursement 50.00 $1,561,053.39 WATERLOO WATER WORKS ATTEST: ___________________________ Secretary Page 297 of 297