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HomeMy WebLinkAboutCouncil Packet - 2/26/2018THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, REGULAR SESSION TO BE HELD AT THE HAROLD E. GETTY COUNCIL CHAMBERS Monday, February 26, 2018 5:30 PM CITY OF WATERLOO GOALS 1. Support the creation of new, livable wage jobs through a balanced economic development approach of assisting existing businesses, fostering start-ups, attracting new employers and cultivating an adequate workforce. 2. Implement a Community Policing strategy that creates a safe environment in Waterloo. 3. Reduce the City's property tax levies through a responsible balance of cost reduction in City operations and increases in taxable property valuations to ensure that Waterloo is a competitive, affordable, and livable city. 4. Enhance the image of Waterloo and the City to residents and businesses inside and outside of the community. General Rules for Public Participation 1. At the chair/presider's discretion, you may address an item on the current agenda by stepping to the podium, and after recognition by the chair/presider, state your name, address and group affiliation (if appropriate) and speak clearly into the microphone. 2. You may speak one (1) time per item for a maximum of five (5) minutes as long as you have registered with the City Clerk's office no later than 4:00 p.m. on the day of the Council Meeting. If not registered with the City Clerk's office you may speak one (1) time per item for a maximum of three (3) minutes. 3. If there is a hearing scheduled as part of an agenda item, the chair/presider will allow everyone who wishes to address the council, using the same participation guidelines found in these "general rules". 4. Although not required by city code of ordinances, oral presentations may be allowed at the chair/presider's (usually the Mayor or Mayor Pro Tem) discretion. The "oral presentations" section of the agenda is your opportunity to address items not on the agenda. You may speak one (1) time for a maximum of five (5) minutes as long as you have registered with the City Clerk's office no later than 4:00 p.m. on the day of the Council Meeting. If not registered with the City Clerk's office a speaker may speak to one (1) issue per meeting for a maximum of three (3) minutes. Official action cannot be taken by the Council at that time, but may be placed on a future agenda or referred to the appropriate department. 5. Keep comments germane and refrain from personal, impertinent or slanderous remarks. 6. Questions concerning these rules or any agenda item may be directed to the Clerk's Office at 291-4323. 7. Citizens are encouraged to register with the Clerk's Office by 4:00 p.m. on Monday of the day of the City Council meeting to appear before the City Council (may also register by phone). Registered speakers will be given first priority. Page 1 of 291 Roll Call. Prayer or Moment of Silence Pledge of Allegiance Jerome Amos, Ward 4 Council Member Agenda, as proposed or amended. Minutes of February 19, 2018, Regular Session, as proposed. ORAL PRESENTATIONS Iowa Code Chapter 21 gives the public the right to attend council meetings but it does not require cities to allow public participation except during public hearings. The City of Waterloo encourages the public to participate during the Oral Presentations by following the rules listed on the front of the agenda. 1. Consent Agenda: (The following items will be acted upon by voice vote on a single motion without separate discussion, unless someone from the council or public requests that a specific item be considered separately.) A. Resolution to approve the following: 1. Bills Payment, Finance Committee Invoice Summary Report, a copy of which is on file in the office of the City Clerk. 2. Request from Amy O'Brien and Jill Sires for a variance to the Noise Ordinance on September 22, 2018, from 3:00 p.m. to 11:00 p.m. in conjunction with the Rock the Look event, to be held on Jefferson Street between 5th and 6th Streets, including a band, PA system and the use of city barricades. Submitted By: Dave Mohlis, Police Captain B. Motion to approve the following: 1. TRAVEL REQUESTS a. Spencer Jensen, Facilities Specialist Class/Meeting: Returning Artwork Destination: Mahwah, New Jersey Dates: March 7-12, 2018 Amount not to exceed: $1,715 b. Chris Ferguson, Fire Marshal Class/Meeting: Arson K-9 Recertification Destination: Evansville, Indiana Dates: June 4-8, 2018 Amount not to exceed: $1,025 c. Pat Treloar, Fire Chief Class/Meeting: Labor -Management Alliance - Conference/Workshop Page 2 of 291 Destination: Denver, Colorado Dates: April 4-6, 2018 Amount not to exceed: $2,100 d. Paul Huting, Leisure Services Director Class/Meeting: Iowa Park and Recreation Association Conference Destination: Coralville, Iowa Dates: March 26-29, Amount not to exceed: $529.60 2018 e. LeAnn M. Even, Deputy City Clerk Class/Meeting: Iowa Municipal Finance Officers Association Spring Conference Destination: Des Moines, Iowa Dates: April 19-20, 2018 Amount not to exceed: $386 2. LIQUOR LICENSES a. Hampton Inn, 2034 LaPorte Road Class: Special C Liquor Renewal Application Includes Sunday Expiration Date: 1/31/2019 b. Legends Sports Grill, 118 Commercial Street Class: C Liquor w/Outdoor Service Renewal Application Includes Sunday Expiration Date: 1/21/2019 3. Cigarette/Tobacco Permit New Application for Mama's Kitchen, 4335 Texas Street. 4. Bonds. PUBLIC HEARINGS 2. General Obligation Bonds - ECP -1 - The issuance of not to exceed $11,500,000 in General Obligation Bonds for essential corporate purposes. Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution authorizing the issuance of not to exceed $11,500,000 General Obligation Bonds, and levying a tax for the payment thereof. Submitted By: Michelle Weidner, Chief Financial Officer 3. Adoption of the FY 2019-2023 Capital Improvements Program for the City of Waterloo. Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution adopting the FY 2019-2023 Capital Improvements Program. Submitted By: Noel Anderson, Community Planning and Development Director Page 3 of 291 4. Property Exchange Agreement with the Waterloo Community School District for the sale and conveyance of city owned property (southern 10 acres of Miriam Park) and acquisition of the former Edison School site. Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution approving the Exchange Agreement with the Waterloo Community School District for the sale and conveyance of City owned property (southerly 10 acres of Miriam Park) and acquisition of the former Edison School site, and authorize the Mayor and City Clerk to execute said documents. Submitted By: Noel Anderson, Community Planning & Development Director 5. Exchange Agreement and Assignment of Real Estate Contract with L & H Farms, Ltd. for the acquisition of property in Black Hawk County for exchange of property in the San Marnan TIF District in the amount of $364,117 for 9.54 acres, and up to $10,000 in closing costs. Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution approving the Exchange Agreement and Assignment of Real Estate Contract with L & H Farms, Ltd. for the acquisition of 9.54 acres of land in Black Hawk County for the sum of $364,117, and up to $10,000 in closing costs, in exchange for property in the San Marnan TIF District, and authorize the Mayor and City Clerk to execute said documents. Submitted By: Noel Anderson, Community Planning & Development Director RESOLUTIONS 6. Resolution approving the Iowa Certified Local Government 2017 Annual Report and authorize the Mayor and Planning Staff to execute said document. Submitted By: Noel Anderson, Community Planning and Development Director 7. Resolution approving Amendment to the Development Agreement with Cardinal Construction of Waterloo, Iowa, approved August 7, 2017, for the property to be platted as Brock Third Addition, and authorize the Mayor and City Clerk to execute said documents. Submitted By: Noel Anderson, Community Planning & Development Director 8. Resolution approving an agreement with the Waterloo Water Works for water main replacements, in conjunction with FY 2018 Street Reconstruction Program, Contract No. 944, and authorize the Mayor and City Clerk to execute said document. Submitted By: Dennis Gentz, PE, Assistant City Engineer 9. Resolution approving an agreement with the Waterloo Water Works for water main replacements in conjunction with FY 2018 University Avenue Reconstruction Phase I - Greenhill Road to Evergreen Avenue, Contract No. 933, and authorize the Mayor and City Clerk to execute said document. Submitted By: Dennis Gentz, PE, Assistant City Engineer 10. Resolution approving Facility Plan and the Intended Use Plan application Page 4 of 291 (IUP) for funding from the State Revolving Fund in conjunction with FY 2019 Sanitary Sewer Gatewell Repairs, Contract No. 951 and authorize the Mayor to execute said document. Submitted By: Jamie Knutson, PE, Associate Engineer 11. Resolution affirming support of the State Historic Tax Credit Program. Submitted By: Mayor Quentin Hart ORDINANCES 12. An Ordinance amending the 2008 Traffic Code, Section 549 - Loading Zones. Motion to receive, file, consider and pass for the first time an Ordinance amending the 2008 Traffic Code, Section 549 - Loading Zones, by deleting subsection (11a) Northeast side in the 200 block of Prospect Blvd. for 164 feet in front of the School, with a five (5) minute limit. Motion to suspend the rules. Motion to consider and pass for the second and third times and adopt said ordinance. Submitted By: Sandie Greco, Interim Public Works Director OTHER COUNCIL BUSINESS 13. Motion approving Change Order No. 4 from McGiII Restoration, for a net increase of $15,472.00, in conjunction with the FY 2017 East 5th Street Parking Garage Repairs, Contract No. 930, and authorize the Mayor and City Clerk to execute said document. Submitted By: Mark A. Boesen, Manager Rehabilitation Services/Building Maintenance ADJOURNMENT Motion to adjourn. Kelley Felchle City Clerk MEETINGS 4:00 p.m. Council Work Session, Harold E. Getty Council Chambers 5:10 p.m. Finance Committee, Harold E. Getty Council Chambers PUBLIC INFORMATION 1. Waterloo Leisure Services Board Minutes of January 9, 2018. 2. Communication from the Waterloo Public Library on the notice of the conclusion of employment for Andrea D. Smith, Library Assistant, effective February 12, 2018 with recommendation of approval of payout of $1,234.07 for unused benefits. 3. Airport Board Meeting Minutes, December 19, 2017 4. Airport Board Meeting Minutes of January 23, 2018. Page 5 of 291 CITY OF WATERLOO Council Communication Minutes of February 19, 2018, Regular Session, as proposed. City Council Meeting: 2/26/2018 Prepared: REVIEWERS: Department Reviewer Action Date Clerk Office Higby, Nancy Approved 2/20/2018 - 2:59 PM ATTACHMENTS: Description Type ® Minutes of February 19, 2018 Backup Material Submitted by: Submitted By: Page 6 of 291 February 19, 2018 The Council of the City of Waterloo, Iowa, met in Regular Session at Harold E. Getty Council Chambers, Waterloo, Iowa, at 5:30 p.m., on Monday, February 19, 2018. Mayor Quentin Hart in the Chair. Roll Call: Jacobs, Morrissey, Shimp, Klein, Amos, Schmitt, and Juon. Prayer or Moment of Silence. Pledge of Allegiance: Mayor Quentin Hart 146555 - Juon/Schmitt that the Agenda, as proposed, for the Regular Session on Monday, February 19, 2018, at 5:30 p.m., be accepted and approved. Voice vote -Ayes: Seven. Motion carried. 146556 - Juon/Schmitt that the Minutes, as proposed, for the Regular Session on Monday, February 12, 2018, at 5:30 p.m., be accepted and approved. Voice vote -Ayes: Seven. Motion carried. Mayor Hart recognized the Optimist Youth Basketball Coaches and players of the year. ORAL PRESENTATIONS Mary Potter, 207 Leland, commented that it is time for the council to work to make Waterloo a better place. She explained that people typically run for office on reducing taxes and it is not an approach that will bring people to Waterloo and asked the council to think about what will make Waterloo attractive to newcomers. Darrel Hartema, 158 Letch Road, commented that he would like to see council find solutions for Waterloo and stop trying to be like Cedar Falls and Dubuque. Mike Boquist, 416 Shirley, explained that he took an oath to serve his country and is frustrated that now that he is home he sees politics dividing the city and country and asked council to reconsider their decision to not hire John Oehlrich. Todd Obadal, 124 Amity Drive, commented on the hiring process per City Ordinance 1-8-1B. Forest Dillavou, 1725 Huntington Road, commented that when VGM underwent an expansion they told the council that it would consider moving operations to Cedar Falls because their property taxes are cheaper than Waterloo. He further expressed frustration with high taxes in Waterloo and tax incentives. John Sherbon, 1715 Robin Road, commented that the biggest problem he sees with the hiring process is a procedural problem. Mr. Morrissey read a statement regarding the council not hiring John Oehlrich and asked that the Mayor rule the vote taken by council out of order. Mrs. Juon questioned if the City Attorney can advise on the action that Mr. Morrissey has requested. Mayor Hart commented he will have that conversation with the City Attorney. 146557 - Juon/Schmitt that the above oral comments be received and placed on file. Voice vote -Ayes: Seven. Motion carried. CONSENT AGENDA 146558 - Juon/Schmitt that the following items on the consent agenda be received, placed on file and approved: Page 7 of 291 February 19, 2018 Page 2 a. Resolutions to approve the following: 1. Resolution approving Finance Committee Invoice Summary Report, dated February 19, 2018 in the amount of $2,945,402.85 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. 2018-89. 2. Resolution setting a date of public hearing as March 5, 2018 to approve the request by CRF Rentals for a site plan amendment to the "C -P" Planned Commercial District for construction of a 36' X 144' 5,184 square foot Commercial building located south of 2911 Southland Drive and instruct City Clerk to publish said notice. Resolution adopted and upon approval by Mayor assigned No. 2018-90. 3. Resolution setting date of public hearing as March 5, 2018, for a request by Michael Crane to vacate a platted 20' utility easement located along the southerly property line, for construction of a 12' X 16' 192 square foot shed, located at 235 Niagara Drive, and instruct City Clerk to publish said notice. Resolution adopted and upon approval by Mayor assigned No. 2018-91. 4. Resolution setting date of hearing as March 5, 2018 for the approval of a Development Agreement with Iowa Heartland Habitat for Humanity, which includes the sale of seven parcels of land in the Walnut Neighborhood, acquisition of a parcel in the Church Row Neighborhood, $28,000 to acquire additional properties in the Walnut Neighborhood, and the construction of homes in the area, and instruct City Clerk to publish notice. Resolution adopted and upon approval by Mayor assigned No. 2018-92. 5. Resolution setting date of public hearing as February 26, 2018, for adoption of the FY 2019- 2023 Capital Improvements Program for the City of Waterloo, and authorize City Clerk to publish said notice. Resolution adopted and upon approval by Mayor assigned No. 2018-93. 6. Resolution approving Order accepting Acknowledgment/Settlement Agreement and check for $1,500.00 from Casey's, 1604 LaPorte Road, Waterloo, Iowa for sale of tobacco to minor violation -2nd offense. Resolution adopted and upon approval by Mayor assigned No. 2018-94. 7. Resolution setting the date of public hearing as March 8, 2018 to approve the FYE2019 budget and instruct the City Clerk to publish said notice with a tax rate of 18.18863%. Resolution adopted and upon approval by Mayor assigned No. 2018-95. 8. Resolution setting date of public hearing as February 26, 2018 on the proposed issuance of not to exceed $11.5 million General Obligation Bonds, for essential corporate purposes, and instruct City Clerk to publish notice thereof. Resolution adopted and upon approval by Mayor assigned No. 2018-96. 9. Resolution approving preliminary specifications, bid document, form of contract, and estimate of cost, etc., and setting date of bid opening as March 8, 2018 and date of public hearing as March 12, 2018, for 5th and 6th Streets Systemic Traffic Safety Improvements, and instruct City Clerk to publish notice. Resolution adopted and upon approval by Mayor assigned No. 2018-97. 10. Resolution preliminarily approving plans, specifications, form of contract, etc. and setting date of bid opening as March 8, 2018 and date of public hearing as March 12, 2018 for the Page 8 of 291 February 19, 2018 2. Page 3 purchase of one (1) automated side -load garbage truck and instruct City Clerk to publish notice of plans, specifications, form of contract, etc. Resolution adopted and upon approval by Mayor assigned No. 2018-98. b. Motion to approve the following: a. b. c. a. b. c. d. e. f. g. Travel Requests Name & Title of Personnel Class/Meeting Destination Date(s) Amount not to Exceed Wayne Castle, Associate Engineer Society of Land Surveyors of Iowa - 2018 Conference. Ames, Iowa March 8-9, 2018 $400.00 Noel Anderson, Community Planning & Development Director 2018 Cedar Valley Coalition Washington, DC April 23-25, 2018 $2,065.00 Lt. Fangman, Sgt. Bose, Sgt. Camarata, Inv. Frein, Officers: Koontz, Watson, Ehlers, Gann, Nissen Constitutional Use of Force Waterloo, IA March 19, 2018 $1,161.00 Approved Beer, Liquor, and Wine Applications Name & Address of Business Class New or Renewal Expiration Date Includes Sunday Buzz's Bar, 1016 Maynard Avenue C Liquor/Outdoor Service Renewal Application 3/14/2019 Includes Sunday Dollar General, 3815 University Avenue B Wine/C Beer Renewal Application 2/28/2019 Includes Sunday Dollar General, 3815 University Avenue B Wine/C Beer Renewal Application 3/1/2019 Includes Sunday El Senor Tequila Nightclub, 118-120 E. 11th Street C Liquor/Outdoor Service Renewal Application 2/18/2019 Includes Sunday HyVee Food & Drugstore #3, 1422 Flammang Drive B Native Wine/C Beer/E Liquor Renewal Application 2/8/2019 Includes Sunday Hy -Vee Market Cafe #3, 1422 Flammang Drive C Liquor/Catering Renewal Application 3/15/2019 Includes Sunday Sky, 501 Sycamore St. C Liquor Renewal Application 12/14/2018 Includes Sunday 3. Mayor Hart's recommendation of the following appointments: Appointee Board/Commission Expiration Date New or Re -Appointment Brandon Schoborg General Contractors Board of Licensing, Examiners & Appeals 02/19/2021 New Appointment Quinton Richardson Human Rights Commission 02/12/2019 New Appointment Page 9 of 291 February 19, 2018 Page 4 Roll call vote -Ayes: Seven. Motion carried. PUBLIC HEARINGS 146559 - Schmitt/Amos that proof of publication of notice of public hearing on FY 2018 University Avenue - Phase I , from Greenhill Road to Evergreen Avenue, Contract 933, as published in the Waterloo Courier on February 1, 2018, be received and placed on file. Voice vote -Ayes: Seven. Motion carried. This being the time and place of public hearing, the Mayor called for oral comments. Larry Wheelie, AECOM, provided an overview of the proposed University Avenue improvements. 146560 - Schmitt/Amos that the hearing be closed and oral comments be received and placed on file. Voice vote -Ayes: Seven. Motion carried. 146561 - Schmitt/Amos that "Resolution confirming approval of plans, specifications, form of contract, estimate of cost, etc.", be adopted. Roll -call vote -Ayes: Six. Nays: One (Morrissey). Motion carried. Mr. Shimp requested an overview of the council survey results. Larry Wheelie, AECOM, provided an overview of the council survey results for improvement enhancement requests. Mayor Hart stepped out at 6:10 p.m. Mayor Hart returned at 6:12 p.m. Mr. Shimp questioned how the project phases were determined. Eric Thorson, City Engineer, explained that property easements needed to be required first and explained the different phases to the projects. Mr. Jacobs questioned the type of material that will be used. Larry Wheelie explained they will use concrete for the project. Mr. Schmitt questioned the cost of the project. Larry Wheelie explained the price comparison process. Eric Thorson explained that the city is also cooperating with Waterloo Water Works for main improvements which is about a million dollar project for the entity. Mr. Morrissey questioned what would happen if this item was defeated tonight. Larry Wheelie explained the project would have to start over. Mr. Morrissey expressed frustration that roundabouts were not included in the project. Larry Wheelie explained that the engineers looked at benefits vs. cost for signalized intersections versus roundabouts and that it would cut off access to neighborhood locations and increase costs. Mr. Morrissey requested that at Greenhill Road they eliminate the bridge and insert a roundabout to open up the area for development. He further commented that the public he spoke to has questioned why more time was not given for public input and that the public that has reached out to him has expressed that they want to see a roundabout. Page 10 of 291 February 19, 2018 Page 5 Mayor Hart commented that two public meetings were held and a website was created for the project. Resolution adopted and upon approval by Mayor assigned No. 2018-99. 146562 - Schmitt/Amos that "Resolution authorizing to proceed", be adopted. Roll -call vote -Ayes: Six. Nays: One (Morrissey). Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2018-100. 146563 - Schmitt/Amos Motion to receive and file and instruct City Clerk to read bids and refer to the City Engineer for review. Estimate: $11,288,00.25 Bidder Bid Security Bid Amount Vieth Construction Corp., Cedar Falls, IA 5% $9,469,045.08 K Cunningham Construction Co., Inc., Cedar Falls, IA 5% $8,978,740.40 Peterson Contractors, Inc., Reinbeck, IA 5% $8,709,078.89 Voice vote -Ayes: Six. Nays: One (Morrissey). Motion carried. RESOLUTIONS 146564 - Shimp/Schmitt that "Resolution approving and Agreement with the Iowa Department of Transportation, Chicago Central Railroad Company, and Pacific Railroad Company, for the Conger Street Railroad Crossing Surface Repair Project, with the City's share of the cost totaling $41,500.00, and authorize Mayor to execute said agreement", be adopted. Roll call vote -Ayes: Seven. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2018-101. 146565 - Shimp/Schmitt that "Resolution approving an agreement with the Iowa Department of Transportation, Chicago Central Railroad Company, and Pacific Railroad Company, for the West Donald Street Railroad Crossing Surface Repair project, with the City's share of the cost totaling $24,000.00, and authorize Mayor to execute said agreement", be adopted. Roll call vote -Ayes: Seven. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2018-102. 146566 - Shimp/Schmitt that "Resolution approving an agreement with the Iowa Department of Transportation, Chicago Central Railroad Company, and Pacific Railroad Company, for West Parker Street Railroad Crossing Surface Repair Project, with the city share of the cost totaling $57,000.00, and authorize the Mayor to execute said agreement", be adopted. Roll call vote -Ayes: Seven. Motion carried. Mr. Morrissey requested that the city ensure that detours for the project not block off access to parts of the community. Eric Thorson confirmed the city would be looking at this issue. Resolution adopted and upon approval by Mayor assigned No. 2018-103. Page 11 of 291 February 19, 2018 Page 6 146567 - Morrissey/Amos that "Resolution approving Professional Service Agreement with AECOM Technical Services, Inc. for an amount not to exceed $53,800 in conjunction with the FY 2018 Bridge and Culvert Repairs, Contract No. 950 and authorize the Mayor to execute said document", be adopted. Roll call vote - Ayes: Seven. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2018-104. 146568 - Morrissey/Amos that "Resolution approving Supplemental Agreement No. 1 with AECOM Technical Services, Inc. of Waterloo, Iowa, in the amount of $4,000, in conjunction with Runway 6/24, and authorize the Mayor to execute said document", be adopted. Roll call vote -Ayes: Six. Nays: One (Jacobs). Motion carried. Mr. Schmitt requested an overview of the item. Keith Kaspari, Airport Director, explained the scope of the contract. Mr. Jacobs questioned what size jet would be able to land on the runway. Keith Kaspari explained that only general aviation light aircraft would utilize the runway. Resolution adopted and upon approval by Mayor assigned No. 2018-105. 146569 - Morrissey/Amos that "Resolution approving Supplemental Agreement No. 1 to the Professional Services Agreement with HR Green Company of Cedar Rapids, Iowa, in the amount of $5,300 in conjunction with the former Chamberlain site redevelopment planning, and authorize the Mayor to execute said document", be adopted. Roll call vote -Ayes: Seven. Motion carried. Mayor Hart questioned if the city will have more public meetings. Noel Anderson, Community Planning and Development Director, explained that the city will continue to hold public meetings as they develop design plans with HR Green Company. Resolution adopted and upon approval by Mayor assigned No. 2018-106. 146570 - Amos/Shimp that "Resolution approving a request by CGA Engineers on behalf of BCS Properties, LLC for the preliminary plat of Village West 2nd Addition, a three lot commercial subdivision, located at the northeast corner of Highway 63 and West Ridgeway Avenue", be adopted. Roll call vote -Ayes: Seven. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2018-107. 146571 - Amos/Shimp that "Resolution approving an Amendment to the Development Agreement with Central Property Holdings, LLC, to alter the structure of the parking lot acquisition for the Grocery Store project located at East 2nd Street and Franklin Street, and authorize the Mayor and City Clerk to execute all necessary documents", be adopted. Roll call vote -Ayes: Seven. Motion carried. Mr. Shimp expressed support for the item. Mrs. Klein expressed support for the item. Mr. Schmitt explained that he received an email from Laura Hoy with the Walnut Neighborhood Association sharing her and the Association's support of the item. Page 12 of 291 February 19, 2018 Page 7 Rodney Anderson, 216 Heather, and Central Property Holdings, LLC, commented on the importance of community and taking the time to get to know the citizens of Waterloo. Resolution adopted and upon approval by Mayor assigned No. 2018-108. ORDINANCES 146572 - Morrissey/Amos that "an Ordinance amending g 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 at 719 West 6th Street", be considered and passed for the third time and adopted. Roll call vote -Ayes: Seven. Motion carried. Ordinance adopted and upon approval by Mayor assigned No. 5439. 146573 - Amos/Morrissey that "an Ordinance amending the 2008 Traffic Code, Section 540 - Obedience to Official Traffic - Control Devices, by deleting subsection (88) First Street (E) and Mulberry Street- Pre -timed and (90) First Street (E) and Sycamore Street - Pre -Timed, as signals have been removed", be considered and passed for the third time and adopted. Roll call vote -Ayes: Seven. Motion carried. Ordinance adopted and upon approval by Mayor assigned No. 5440. 146574 - Morrissey/Amos that "an Ordinance amending the 2008 Traffic Code, Section 543 - Thru Streets by deleting Subsection (57) First Street (E) and adding in lieu thereof a new Subsection (57) First Street (E), as follows: (57) First Street (E) - Cedar River to Franklin Street except for signals at Lafayette Street and Franklin Street; and except Stop signs at Mulberry Street and Sycamore Street", be considered and passed for the third time and adopted. Roll call vote -Ayes: Seven. Motion carried. Ordinance adopted and upon approval by Mayor assigned No. 5441. OTHER COUNCIL BUSINESS 146575 - Shimp/Amos that Change Order No. 1, for a net increase of $8,454.00, for ongoing exterior improvements to Hangar No. 4 at the Waterloo Regional Airport, and authorize the Mayor to execute said document, be received, placed on file and approved. Voice vote -Ayes: Seven. Motion carried. ADJOURNMENT 146576 - Morrissey/Shimp that the Council adjourn at 6:46 p.m. Voice vote -Ayes: Seven. Motion carried. Kelley Felchle City Clerk Page 13 of 291 CITY OF WATERLOO Council Communication Request from Amy O'Brien and Jill Sires for a variance to the Noise Ordinance on September 22, 2018, from 3:00 p.m. to 11:00 p.m. in conjunction with the Rock the Look event, to be held on Jefferson Street between 5th and 6th Streets, including a band, PA system and the use of city barricades. City Council Meeting: 2/26/2018 Prepared: 2/20/2018 REVIEWERS: Department Reviewer Action Date Police Department Mohlis, Dave Approved 2/20/2018 - 3:50 PM Clerk Office Higby, Nancy Approved 2/21/2018 - 12:07 PM ATTACHMENTS: Description Type o Rock the Look Noise Variance Request Cover Memo SUBJECT: Request from Amy O'Brien and Jill Sires for a variance to the Noise Ordinance on September 22, 2018, from 3:00 p.m. to 11:00 p.m. in conjunction with the Rock the Look event, to be held on Jefferson Street between 5th and 6th Streets, including a band, PA system and the use of city barricades. Submitted by: Submitted By: Dave Mohlis, Police Captain Recommended Action: Approve Request This event will bring Stylists and Models to the Cedar Valley for this event, to include estimated 600 spectators. The event will include a stage, live Summary Statement: music, and vendors. The event is weather dependent. In addition to the street closing, area businesses will be involved and request they are requesting a noise variance. This event will benefit St. Jude's Children's Research Hospital. Expenditure Required: Cost with placing and retrieving barricades. Source of Funds: General Policy Issue: None Background Information: This is the 1st year of this event will be held at this location. Page 14 of 291 CITY OF WATERLOO IOWA APPLICATION FOR VARIANCE TO NOISE ORDINANCE Applicant's Name: Amy O'Brien and Jill Sires Applicant's Address: 1727 Byron Waterloo IA 50702 Applicant's Phone#: 1-319-610-0820 Anticipated Date of Variance:Sept 22 2018 Name of Event: Rock the Look... S lists ivin Back su rtin St. Dudes Children Research Ho ital Group Organizing the Event: Cedar Valley Hairstylist put this on Times of day of variance: 7pm-1 Opm Set up between 3-6 Geographical location of variance, physical address: Between 5th and 6th on Jefferson Distance of activity from residential properties: 2 blocks Please explain the event requiring the variance and be specific. Include geographical location or dm and what actually will exceed the noise ordinance, such as band playing, PA system, etc. l .Our goal is to have a band outside b the Bri, house bar & ' ::1_ on Jefferson st We 1 will play between sets. There will be 2 Mcs for the show who will.announce who and wiukt is mon during the event. We will set up tables for our guest to stand at. We will have some „catered ' plan on letting the bars serve drinks that guest will be allowed to:%ring into the gent. Se'v talked #i owners on that block to confirm that the want to = _ : tc We will have venders as well as each salon will have the opportunity to show case the event displayed thru out our event. 2. We would Tike to bring in extra lighting to make sure the event i ll lite:. CITY OF WATERLOO Council Communication Bonds. City Council Meeting: 2/26/2018 Prepared: REVIEWERS: Department Reviewer Action Date Engineering Higby, Nancy Approved 2/21/2018 - 4:09 PM ATTACHMENTS: Description Type ❑ Bonds for Council Approval 2.26.18 Backup Material SUBJECT: Bonds. Page 16 of 291 CITY OF WATERLOO, IOWA CITY ATTORNEY'S OFFICE 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4327 Fax (319) 291-4286 February 20, 2018 Mayor Quentin Hart and City Council Members City Hall Waterloo, IA 50703 Dear Mayor Hart and Council Members: I have examined the bonds filed with the City Clerk/Auditor's Office up to the close of business on February 20, 2018. Of the ( bonds submitted, q were approved and rejected, as shown on the attached list. Very truly yours, vid R. Zellhoefer Waterloo City Attorney DRZ:sda CITY WEBSITE: www.cityofwaterlooiowa.com were WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer BONDS FOR COUNCIL APPROVAL FEBRUARY 26, 2018 RIGHT OF WAY CONSTRUCTION BOND AMOUNT $15,000.00 IA 596877 BUCHANAN MASONRY INC dba C & C MASONRY INDEPENDENCE, IA IA 559897 CARDINAL CONSTRUCTION INC. WATERLOO, IA IA 564241 CARL SCHULER MASONRY CONSTR. WATERLOO, IA IA 594846 MANATT'S, INC. BROOKYN, IA IA 627709 QUALITY CONSTRUCTION SERVICES ELDRIDGE, IA IA 599391 SEEHASE MASONRY, INC. SUMNER, IA SY56900 WEST UNION TRENCHING, LLC WEST UNION, IA IA 537809 YOUNG PLUMBING & HEATING CO. WATERLOO, IA 55-139158 YOUNGBLUT CONTRACTING INC. WASHBURN, IA Page 17 of 291 CITY OF WATERLOO Council Communication General Obligation Bonds - ECP -1 - The issuance of not to exceed $11,500,000 in General Obligation Bonds for essential corporate purposes. City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Reviewer Action Date Finance Weidner, Michelle Approved 2/21/2018 - 9:36 AM Clerk Office Even, LeAnn Approved 2/21/2018 - 11:50 AM ATTACHMENTS: Description Type ECP -1 Bond Hearing Council Comm Cover Memo SUBJECT: Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution authorizing the issuance of not to exceed $11,500,000 General Obligation Bonds, and levying a tax for the payment thereof. Submitted by: Submitted By: Michelle Weidner, Chief Financial Officer Recommended Action: ECP -1 - Not to exceed $11,500,000 General Obligation Bonds for essential corporate purposes of said City, the proceeds of which bonds will be used to provide funds to pay the costs of the acquisition, improvement and installation of traffic control devices, signage, fixtures, equipment and improvements, including but not limited to traffic signal, pavement markings, traffic safety, fiber optics installation, and street light fixtures, connections, and facility improvements; the acquisition and installation of emergency services communication equipment and systems, including early warning sirens; the acquisition of vehicles and equipment for the Police and Fire Rescue Departments, including fire engines; the acquisition of vehicles and equipment for the street, public works and sign and traffic departments; the rehabilitation and improvement of City parks and the acquisition, repair and replacement of facilities, equipment and improvements commonly found in City parks; the removal, replacement and planting of trees in parks and public grounds; the construction, reconstruction and repairing of street, sidewalk, trail, alley, public ground, marketplace, bridge, pedestrian underpass and overpass repairs and reconstruction, and intersection improvements; the acquisition, construction and improvement of real and personal property useful for the protection of property from floods or high waters, including flood control, levees, embankments, waterway, storm water and drainage improvements; the removal or replacement of dead or diseased trees; the acquisition and demolition of dangerous or dilapidated buildings, structures or properties, or funding multi -family housing assistance; and Page 18 of 291 Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Alternative: Background Information: refunding or refinancing outstanding debt, including General Obligation Bonds, Series 2010A (Taxable Build America Bonds) dated June 29, 2010. We are planning to sell $8 million in general obligation bonds for a number of general purposes this spring, and approximately $3 million in refunding bonds. We plan to use the State of Iowa Revolving Fund for sewer projects. Public hearings will be held for those projects at a later date. (Details on projects covered by each hearing are on file for review at City Hall.) The new principal amount of $8,000,000 plus interest will be required to be repaid in the future, as well as the principal and interest on the refunded bonds. Repayment will be made from various sources, including general property taxes and tax increment revenue. The issuance of bonds commits the city to future repayment. The City could choose not to sell bonds and not proceed with the projects. This would reduce future debt service costs. However, other costs would likely increase. For example, a number of the planned projects have been mandated by regulatory agencies that could have financial implications if the projects aren't completed as required. A general listing of projects planned to be completed using bond proceeds authorized by these hearings is attached. Additional hearings will be held at a later date for projects that are classified as general corporate purposes. Page 19 of 291 Mayor QUENTIN HART COUNCIL MEMBERS MARGARET KLEIN Ward 1 BRUCE JACOBS Ward 2 PATRICK MORRISSEY Ward 3 JEROME AMOS, JR. Ward 4 CHRIS SH!MP Ward 5 SHARON JUON Al -Large STEVE SCHMI`rT At -Large CITY OF WATERLOO, IOWA CITY CLERK AND FINANCE DEPARTMENT KELLEY FELCHLE • City Clerk MICHELLEWEIDNER,CPA • Chief Financial Officer Council Communication City Council Meeting: February 26, 2018 Prepared: February 21, 2018 Dept. Head Signature: Michelle Weidner Number of Attachments: None SUBJECT: FYE2018 Essential Corporate Purpose Bond Issue Hearing Submitted by: Michelle Weidner, Chief Financial Officer Recommended City Council Actions: Adopt a resolution to set the date of hearing as February 26, 2018 on the proposed issuance of the following bonds, as follows: ECP -1 - Not to exceed $11,500,000 General Obligation Bonds for essential corporate purposes of said City, the proceeds of which bonds will be used to provide funds to pay the costs of the acquisition, improvement and installation of traffic control devices, signage, fixtures, equipment and improvements, including but not limited to traffic signal, pavement markings, traffic safety, fiber optics installation, and street light fixtures, connections, and facility improvements; the acquisition and installation of emergency services communication equipment and systems, including early warning sirens; the acquisition of vehicles and equipment for the Police and Fire Rescue Departments, including fire engines; the acquisition of vehicles and equipment for the street, public works and sign and traffic departments; the rehabilitation and improvement of City parks and the acquisition, repair and replacement of facilities, equipment and improvements commonly found in City parks; the removal, replacement and planting of trees in parks and public grounds; the construction, reconstruction and repairing of street, sidewalk, trail, alley, public ground, marketplace, bridge, pedestrian underpass and overpass repairs and reconstruction, and intersection improvements; the acquisition, construction and improvement of real and personal property useful for the protection of property from floods or high waters, including flood control, levees, embankments, waterway, storm water and drainage improvements; the removal or replacement of dead or diseased trees; the acquisition and demolition of dangerous or dilapidated buildings, structures or properties, or funding multi -family housing assistance; and refunding or refinancing outstanding debt, including General Obligation Bonds, Series 2010A (Taxable Build America Bonds) dated June 29, 2010. WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 20 of 291 Council Communication FYE2018 Bond Hearings Page 2of2 Adopt a resolution authorizing the issuance of $11,500,000 General Obligation Essential Corporate Purpose Bonds and levying a tax for the payment thereof. Summary Statement: We are planning to sell $8,000,000 in general obligation bonds for a number of general purposes and approximately $2,845,000 to refund the balance of the Build America Bonds issued in June 2010 this spring. Please note that the hearing amount indicated is being set higher than the actual amounts to be issued to provide flexibility in the project allocations, which reduces future administrative costs. Expenditure Required: The principal amount plus interest will be required to be repaid in the future. Source of Funds: Repayment will be made from various sources, including general property taxes and tax increment revenue. Policy Issue: The issuance of bonds commits the city to future repayment. Alternative: The City could choose not to sell bonds and not proceed with the projects. This would reduce future debt service costs. However, other costs would increase. For example, a number of the planned projects are government mandates that could have financial ramifications if they are not completed. Background Information: A general listing of projects planned to be completed using bond proceeds authorized by this hearing is attached. Additional hearings will be held at a later date for projects that are classified as general corporate purposes. Page 21 of 291 CITY OF WATERLOO Council Communication Adoption of the FY 2019-2023 Capital Improvements Program for the City of Waterloo. City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Planning & Zoning Planning & Zoning Planning & Zoning Clerk Office Reviewer Schroeder, Aric Andera, Tim Schroeder, Aric Even, LeAnn ATTACHMENTS: Description o CIP Spreadsheets Li Leisure Services - Whitewater SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Action Rejected Approved Approved Approved Type Backup Material Backup Material Date 2/21/2018 - 10:57 AM 2/21/2018 - 11:01 AM 2/21/2018 - 11:02 AM 2/21/2018 - 11:47 AM Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution adopting the FY 2019-2023 Capital Improvements Program. Submitted By: Noel Anderson. Community Planning and Development Director Approval Transmitted herewith is a request for the adoption of the Capital Improvements Program for Fiscal Years 2019-2023. The Capital Improvements Plan details the City of Waterloo's priority capital expenditures for a five year period. It is updated annually to re-establish top priority projects as needs may change in the community, but while staying cognizant of the larger, multi-year planning methods for larger projects, overall infrastructure needs and based on the growth of the community. The overall priority for the 2019-2023 plan is centered around the many city projects and needs, with an emphasis on city facility management, flood protection, sewer improvements, economic development, capital equipment and vehicles, public safety,etc. None N/A Page 22 of 291 Policy Issue: Alternative: Background Information: Legal Descriptions: Long term and short term planning for capital improvements citywide. N/A The City of Waterloo annually updates and adopts a Capital Improvements Plan for a five year timeframe. N/A Page 23 of 291 Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 13,652,250 3,337,500 5,000 16,994,750 0 02 23 18 Final 8m Revision All Years - 2019-Pn@I124Cjgft }fiey Rearranging Summary 2/23/2018 2:19 PM Page 1 SUMMARY FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP Requested Approved Department FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 FY21 Capital Equipment and Vehicles 580,000 2,215,000 740,000 0 0 0 620,000 2,106,000 590,000 503,000 1,652,000 530,000 Public Works 125,000 670,000 295,000 0 0 0 185,000 0 0 150,000 0 0 City Facility Management 1,760,000 3,690,000 1,600,000 0 0 0 1,525,000 3,270,000 1,205,000 1,125,000 3,165,100 1,370,000 Clerks Department 0 0 0 0 0 0 0 0 0 0 0 0 Community Planning and Development 673,000 1,770,000 639,000 630,000 0 0 775,000 1,630,000 905,000 860,000 1,380,000 850,000 Airport 100,000 523,000 50,000 0 0 0 150,000 160,000 30,000 150,000 325,000 100,000 Engineering 3,492,000 3,645,000 2,625,000 0 0 0 2,682,000 4,730,000 2,922,500 3,212,000 5,165,000 3,078,000 Finance 125,000 125,000 125,000 0 0 0 125,000 125,000 125,000 125,000 125,000 125,000 Fire Rescue 70,000 800,000 580,000 0 0 0 445,000 1,200,000 845,000 720,000 1,345,000 795,000 Information Services 100,000 90,000 75,000 0 0 0 74,000 121,000 51,000 65,000 135,000 50,000 Leisure Services 573,000 1,948,500 704,500 0 0 87,500 925,000 1,540,000 855,500 586,000 1,236,000 642,000 Library 18,000 78,000 25,000 0 0 25,000 0 250,000 0 0 0 0 Police 130,000 679,000 285,000 0 0 250,000 210,000 373,000 209,000 175,000 363,000 189,000 Sign and Traffic 234,000 761,250 256,500 0 0 0 284,000 1,652,000 262,000 309,000 897,000 271,000 Code Enforcment 0 0 0 0 0 0 0 0 0 0 0 0 Cultural and Arts Center 20,000 0 0 0 0 0 0 0 0 20,000 0 0 Total G.O. Debt Requested 8,000,000 16,994,750 8,000,000 630,000 0 362,500 8,000,000 17,157,000 8,000,000 8,000,000 15,788,100 8,000,000 Waste Management - State Revolving Loan Fund 0 0 0 0 0 GRAND TOTAL 8,000,000 16,994,750 8,000,000 630,000 0 8,000,000 17,157,000 8,000,000 8,000,000 15,788,100 8,000,000 Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 13,652,250 3,337,500 5,000 16,994,750 0 02 23 18 Final 8m Revision All Years - 2019-Pn@I124Cjgft }fiey Rearranging Summary 2/23/2018 2:19 PM Page 1 Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 02 23 18 Final 8m Revision All Years - 2019- @ll2SCjgfit2}fiey Rearranging Summary 2/23/2018 2:19 PM Page 2 SUMMARY FY18 CIP Requested Approved FY18 CIP Requested Approved Department FY22 FY22 FY22 FY23 FY23 FY23 Capital Equipment and Vehicles 510,000 2,135,000 676,000 0 1,809,000 891,000 Public Works 143,000 0 0 0 0 0 City Facility Management 1,020,000 2,250,000 1,245,000 0 675,000 620,000 Clerks Department 0 0 0 0 0 0 Community Planning and Development 830,000 1,130,000 785,000 0 935,000 785,000 Airport 100,000 325,000 50,000 0 525,000 0 Engineering 4,090,000 5,530,000 3,810,000 0 4,575,000 4,035,000 Finance 125,000 125,000 125,000 0 125,000 125,000 Fire Rescue 210,000 40,000 245,000 0 140,000 90,000 Information Services 10,000 40,000 10,000 0 15,000 15,000 Leisure Services 573,000 1,185,000 612,000 0 1,101,000 893,500 Library 0 0 0 0 0 0 Police 165,000 335,500 208,000 0 345,500 250,500 Sign and Traffic 224,000 597,000 234,000 0 397,000 295,000 Code Enforcment 0 0 0 0 0 0 Cultural and Arts Center 0 0 0 0 0 0 Total G.O. Debt Requested 8,000,000 13,692,500 8,000,000 0 10,642,500 8,000,000 Waste Management - State Revolving Loan Fund 0 0 0 GRAND TOTAL 8,000,000 13,692,500 8,000,000 0 10,642,500 8,000,000 Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 02 23 18 Final 8m Revision All Years - 2019- @ll2SCjgfit2}fiey Rearranging Summary 2/23/2018 2:19 PM Page 2 Proj. Priority CAPITAL EQUIPMENT AND VEHICLES FY18CIP Requested Approved TIF Taxable Gaming FYI8CIP Requested Approved FY18CIP Requested # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 110 H High (07) Engineering - Replace 2005 pickups (2) 0 24,000 0 25,000 0 0 0 0 110 M Med (08) Planning & Zoning - Replace Sedans '05 & '08 0 24,000 0 0 0 0 0 0 110 L Low (09) MIS - Use Existing Fleet Transfer 0 0 0 0 0 0 0 0 110 H High (11) Police - Replace 7 patrol vehicle per year. 160,000 218,000 120,000 160,000 225,000 120,000 160,000 230,000 110 L Low (11) Police Equipment 30,000 0 0 0 0 0 28,000 0 110 H High (11) Police Investigation Vehicles. - Replace Sedans '06 (1), '07 (2), 25,000 25,000 25,000 0 25,000 0 25,000 25,000 110 L Low (11) Police Laboratory Vehicle Replacement - None 0 0 0 0 0 0 0 0 110 H High (12) Fire Rescue - Replace '03 Pick-ups (2) & '06 Utility Vehicle 0 35,000 35,000 35,000 35,000 0 0 50,000 110 L Low (17) Animal Control - None 0 0 0 0 0 0 0 0 110 H High (17) Sign & Traffic - Replace '03 Pickup, '04 Bucket Truck, Replace 65,000 95,000 50,000 100,000 350,000 150,000 70,000 70,000 110 H High (18) Public Works - Replace '08 &'11 Service Trucks, Replace '05 P 0 73,000 73,000 0 38,000 0 0 0 110 H High (19) Street - Repl. '72 snow blower, loaders, snow trucks, graders, siA 200,000 1,250,000 221,000 200,000 1,100,000 220,000 20,000 875,000 110 H High (22) Building Inspections - Replace '07 Sedan (2023) 25,000 0 0 0 0 0 0 0 110 L Low (23) Parking Maintenance - None 0 0 0 0 0 0 0 0 110 L Low (26) Center for the Arts - None 0 0 0 0 0 0 0 0 110 L Low (27) Human Rights - None 0 0 0 0 0 0 0 0 110 M Med (29) Airport - Replace '04 Ford Taurus 0 35,000 0 0 0 0 0 0 110 L Low (30) Housing Authority - None 0 0 0 0 0 0 0 0 110 L Low (32) Community Development - Use Existing Fleet Transfer 0 0 0 0 0 0 0 0 110 L Low (33) Library - None 0 0 0 0 0 0 0 0 110 H High (37) Leisure - Replace multiple pickups, service truck, grapple loader 50,000 275,000 120,000 100,000 305,000 100,000 200,000 375,000 110 L Low (51) Code Enforcement - None 0 0 0 0 0 0 0 0 110 H High (98) Facilities Maintenance - Replace '04 Bucket Truck 0 135,000 70,000 0 0 0 0 0 110 H High (99) Motor Pool - Replace Sedans (3) & Vans (2) 25,000 26,000 26,000 0 28,000 0 0 27,000 110 L Low City Clerk - None 0 0 0 0 0 0 0 0 110 Total - Capital Equipment & Vehicles 580,000 2,215,000 740,000 0 0 0 620,000 2,106,000 590,000 503,000 1,652,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 2,1 56,000 59,000 0 2,215,000 0 v2 - 02 12 18 Final 8m Revision APage -241e422aDIP Cap Equip 2/21/2018 9:34 AM Page 1 Proj. Priority CAPITAL EQUIPMENT AND VEHICLES Approved FY18CIP Requested Approved FY18CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 110 H High (07) Engineering - Replace 2005 pickups (2) 0 0 25,000 25,000 0 0 0 110 M Med (08) Planning & Zoning - Replace Sedans '05 & '08 0 0 25,000 25,000 0 0 0 110 L Low (09) MIS - Use Existing Fleet Transfer 0 0 0 0 0 0 0 110 H High (11) Police - Replace 7 patrol vehicle per year. 120,000 160,000 235,000 125,000 0 240,000 150,000 110 L Low (11) Police Equipment 0 0 0 0 0 0 0 110 H High (11) Police Investigation Vehicles. - Replace Sedans '06 (1), '07 (2), 25,000 0 25,000 0 0 25,000 0 110 L Low (11) Police Laboratory Vehicle Replacement - None 0 0 0 0 0 0 0 110 H High (12) Fire Rescue - Replace '03 Pick-ups (2) & '06 Utility Vehicle 25,000 25,000 40,000 25,000 0 0 0 110 L Low (17) Animal Control - None 0 0 0 0 0 0 0 110 H High (17) Sign & Traffic - Replace '03 Pickup, '04 Bucket Truck, Replace 0 0 125,000 100,000 0 70,000 50,000 110 H High (18) Public Works - Replace '08 &'11 Service Trucks, Replace '05 P 0 0 40,000 30,000 0 0 0 110 H High (19) Street - Repl. '72 snow blower, loaders, snow trucks, graders, siA 210,000 300,000 1,200,000 200,000 0 1,100,000 400,000 110 H High (22) Building Inspections - Replace '07 Sedan (2023) 0 0 0 0 0 25,000 25,000 110 L Low (23) Parking Maintenance - None 0 0 0 0 0 0 0 110 L Low (26) Center for the Arts - None 0 0 0 0 0 0 0 110 L Low (27) Human Rights - None 0 0 0 0 0 0 0 110 M Med (29) Airport - Replace '04 Ford Taurus 0 0 0 0 0 0 0 110 L Low (30) Housing Authority - None 0 0 0 0 0 0 0 110 L Low (32) Community Development - Use Existing Fleet Transfer 0 0 0 0 0 0 0 110 L Low (33) Library - None 0 0 0 0 0 0 0 110 H High (37) Leisure - Replace multiple pickups, service truck, grapple loader 150,000 0 365,000 120,000 0 290,000 240,000 110 L Low (51) Code Enforcement - None 0 0 25,000 0 0 30,000 0 110 H High (98) Facilities Maintenance - Replace '04 Bucket Truck 0 0 0 0 0 0 0 110 H High (99) Motor Pool - Replace Sedans (3) & Vans (2) 0 25,000 30,000 26,000 0 29,000 26,000 110 L Low City Clerk - None 0 0 0 0 0 0 0 110 Total - Capital Equipment & Vehicles 530,000 510,000 2,135,000 676,000 0 1,809,000 891,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m Revision APage 22.1102a IP Cap Equip 2/21/2018 9:34 AM Page 2 Proj. Priority PUBLIC WORKS (CENTRAL GARAGE) FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP Requested # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 46 H High Vehicle Automated Wash System 0 270,000 270,000 0 0 0 100,000 0 231 H High Exterior Painting of Public Works Bldg 0 25,000 25,000 25,000 0 0 0 0 229 M Med Public Works Fuel Distribution Site 75,000 75,000 0 0 0 0 0 0 233 M Med Construction of Storage Building 0 250,000 0 100,000 0 0 0 0 268 M Med Wireless Vehicle Lifts 50,000 50,000 0 60,000 0 0 0 0 164 L Low Central Garage Overhead Crane 0 0 0 0 0 0 50,000 0 Total - Public Works 125,000 670,000 295,000 0 0 0 185,000 0 0 150,000 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 295,000 375,000 0 670,000 0 v2 - 02 12 18 Final 8m Revision All ji-2818#2204 CIP Public Works 2/21/2018 9:31 AM Page 1 Proj. Priority PUBLIC WORKS (CENTRAL GARAGE) Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 46 H High Vehicle Automated Wash System 0 93,000 0 0 0 0 0 231 H High Exterior Painting of Public Works Bldg 0 0 0 0 0 0 0 229 M Med Public Works Fuel Distribution Site 0 0 0 0 0 0 0 233 M Med Construction of Storage Building 0 0 0 0 0 0 0 268 M Med Wireless Vehicle Lifts 0 0 0 0 0 0 0 164 L Low Central Garage Overhead Crane 0 50,000 0 0 0 0 0 Total - Public Works 0 143,000 0 0 0 0 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m Revision All ji-2918#2204 CIP Public Works 2/21/2018 9:31 AM Page 2 Proj. Priority CITY FACILITY MANAGEMENT FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP Requested # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 121 H High - 1 City Facility New Construction/Remodeling Fund 80,000 650,000 650,000 80,000 650,000 500,000 80,000 600,000 39 H High - 2 Young Arena Improvments 0 200,000 130,000 0 150,000 85,000 0 150,000 37 H High - 3 Swimining Pool Renovations 20,000 275,000 100,000 0 200,000 75,000 10,000 145,100 275 H High Structural & Mechanical Audit - City Bldgs 0 75,000 75,000 0 0 0 0 0 106 H High - 4 ADA Compliance 20,000 60,000 20,000 20,000 50,000 20,000 20,000 50,000 271 H High - 5 Fire Rescue - HAZMAT Center 0 25,000 20,000 0 15,000 5,000 0 0 23 H High - 6 Fire Station Improvements 10,000 160,000 70,000 0 40,000 20,000 0 40,000 272 H High - 7 Center For The Arts - Restroom Expansions 40,000 200,000 0 0 75,000 0 0 0 270 H High -8 Library Improvements - Outside Bldg. Maint. 5,000 140,000 40,000 0 65,000 25,000 0 0 36 M Med - 9 Library Improvements - Mtg. Rooms, Park. Lot 0 60,000 0 0 50,000 0 10,000 300,000 47 M Med - 10 Center For The Arts - General Maintenance 10,000 50,000 0 5,000 20,000 0 5,000 30,000 41 M Med - 11 Center for the Arts Parking Lot 500,000 300,000 280,000 400,000 650,000 300,000 0 650,000 127 M Med - 12 Downtown Parking Garages 375,000 500,000 150,000 300,000 500,000 175,000 300,000 400,000 M Med - 13 Parking/Revenue Control Equip. Commercial Ramp 0 220,000 65,000 0 0 0 0 0 M Med - 14 Parking Lot Between Sportsplex and Art Center 0 600,000 0 0 650,000 0 0 650,000 M Med - 15 Multi -Space Parking Meter System 0 150,000 0 0 155,000 0 0 150,000 M Med - 16 Veterans Memorial Hall 0 25,000 0 0 0 0 0 0 101 H High 5 Sullivan Bros Convention Cntr Improvements 700,000 0 0 700,000 0 0 700,000 0 273 H High Center for the Arts - Fire Alarm 0 0 0 20,000 0 0 0 0 43 L Low Public Market Facility Maint. Program 0 0 0 0 0 0 0 0 Total - City Facility Management 1,760,000 3,690,000 1,600,000 0 0 0 1,525,000 3,270,000 1,205,000 1,125,000 3,165,100 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 1,785,000 1,905,000 0 3,690,000 0 v2 - 02 12 18 Final 8m Revision Ap 3®0�- CIP Fac Mgmt 2/19/2018 11:54 AM Page 1 Proj. Priority CITY FACILITY MANAGEMENT Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 121 H High - 1 City Facility New Construction/Remodeling Fund 250,000 80,000 600,000 400,000 0 0 0 39 H High - 2 Young Arena Improvments 80,000 0 0 0 0 0 0 37 H High - 3 Swimining Pool Renovations 65,000 20,000 0 0 0 0 0 275 H High Structural & Mechanical Audit - City Bldgs 0 0 0 0 0 0 106 H High - 4 ADA Compliance 20,000 20,000 40,000 20,000 0 25,000 20,000 271 H High - 5 Fire Rescue - HAZMAT Center 0 0 0 0 0 0 23 H High - 6 Fire Station Improvements 30,000 0 40,000 25,000 0 0 0 272 H High - 7 Center For The Arts - Restroom Expansions 0 0 0 0 0 0 0 270 H High -8 Library Improvements - Outside Bldg. Maint. 0 0 0 0 0 0 0 36 M Med - 9 Library Improvements - Mtg. Rooms, Park. Lot 0 0 50,000 0 0 50,000 0 47 M Med - 10 Center For The Arts - General Maintenance 0 0 20,000 0 0 0 0 41 M Med - 11 Center for the Arts Parking Lot 250,000 0 600,000 250,000 0 300,000 300,000 127 M Med - 12 Downtown Parking Garages 300,000 200,000 300,000 250,000 0 300,000 300,000 M Med - 13 Parking/Revenue Control Equip. Commercial Ramp 0 0 0 0 0 0 0 M Med - 14 Parking Lot Between Sportsplex and Art Center 275,000 0 600,000 300,000 0 0 0 M Med - 15 Multi -Space Parking Meter System 100,000 0 0 0 0 0 0 M Med - 16 Veterans Memorial Hall 0 0 0 0 0 0 0 101 H High 5 Sullivan Bros Convention Cntr Improvements 0 700,000 0 0 0 0 0 273 H High Center for the Arts - Fire Alarm 0 0 0 0 0 0 0 43 L Low Public Market Facility Maint. Program 0 0 0 0 0 0 0 Total - City Facility Management 1,370,000 1,020,000 2,250,000 1,245,000 0 675,000 620,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m Revision AjP3$061-29$ CIP Fac Mgmt 2/19/2018 11:54 AM Page 2 Proj. Priority CLERKS FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 FY21 H High 'None 0 0 0 0 0 0 0 0 0 Total - Clerks 0 0 0 0 0 0 0 0 0 0 0 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 0 0 0 0 0 v2 - 02 12 18 Final 8m Revision PliV133132 402-9123 CIP Clerks 2/21/2018 9:39 AM Page 1 Proj. Priority CLERKS FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY22 FY22 FY22 FY23 FY23 FY23 H High None 0 0 0 0 0 0 Total - Clerks 0 0 0 0 0 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m RevisionFstitt* 31 (423 CIP Clerks 2/21/2018 9:39 AM Page 2 Proj. Priority COMMUNITY PLANNING & DEVELOPMENT (P&Z) FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP Requested # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 34 H High - 1 Demolition Projects/Housing Incentives 200,000 800,000 550,000 0 200,000 400,000 225,000 200,000 300,000 54 H High - 2 Bikeway Development 5,000 220,000 50,000 0 5,000 100,000 50,000 10,000 0 125 H High - 3 MidPort 0 0 0 0 0 0 0 0 0 172 H High - 4 Martin Road Tax Increment 0 200,000 0 200,000 50,000 300,000 180,000 100,000 100,000 107 H High - 5 Downtown Development Plan 80,000 80,000 0 80,000 80,000 80,000 80,000 80,000 80,000 90 H High - 6 Chamberlain Demolition & Redevelopment 20,000 50,000 19,000 0 0 50,000 20,000 20,000 50,000 55 H High - 7 Rath Tax Increment 200,000 200,000 0 200,000 100,000 300,000 160,000 100,000 200,000 H High - 8 Historic Survey - Triangle Area 0 20,000 20,000 0 0 0 0 0 0 79 M Med - 1 Downtown Acquisitions 100,000 150,000 0 150,000 200,000 300,000 150,000 210,000 400,000 112 M Med - 2 Housing Development - Ray Tiller Sewer 28,000 50,000 0 0 100,000 100,000 40,000 100,000 250,000 185 L Low - 1 Northeast Industrial Park 0 0 0 0 0 0 0 0 0 33 L Low - 1 San Marnan Drive Economic Development 0 0 0 0 0 0 0 0 0 152 L Low - 1 Logan Tax Increment 0 0 0 0 0 0 0 0 0 58 L Low - 1 GIS/GPS Mapping 0 0 0 0 0 0 0 0 0 248 L Low - 1 Complete Streets 40,000 0 0 0 40,000 0 0 40,000 0 L Low - 1 Highland Neighborhood Place Making & Promotio 0 0 0 0 0 0 0 0 0 L Low - 1 Dunsmore House Restoration Project 0 0 0 0 0 0 0 0 0 L Low - 1 Historic Survey - Church Row Neighborhood 0 0 0 0 0 0 0 0 0 L Low - 1 Revolving Loan Fund 0 0 0 0 0 0 0 0 0 Total - Planning and Development 673,000 1,770,000 639,000 630,000 0 0 775,000 1,630,000 905,000 860,000 1,380,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 1,570,000 200,000 0 1,770,000 0 v2 - 02 12 18 Final 8m Revision 4R 449 -2943 CIP Planning 2/21/2018 9:29 AM Page 1 Proj. Priority COMMUNITY PLANNING & DEVELOPMENT (P&Z) Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 34 H High - 1 Demolition Projects/Housing Incentives 175,000 200,000 300,000 175,000 0 200,000 190,000 54 H High - 2 Bikeway Development 0 10,000 100,000 50,000 0 0 0 125 H High - 3 MidPort 0 0 0 0 0 0 0 172 H High - 4 Martin Road Tax Increment 75,000 100,000 100,000 85,000 0 100,000 90,000 107 H High - 5 Downtown Development Plan 80,000 80,000 80,000 80,000 0 80,000 80,000 90 H High - 6 Chamberlain Demolition & Redevelopment 20,000 0 50,000 20,000 0 50,000 40,000 55 H High - 7 Rath Tax Increment 150,000 200,000 200,000 175,000 0 200,000 175,000 H High - 8 Historic Survey - Triangle Area 0 0 0 0 0 0 0 79 M Med - 1 Downtown Acquisitions 200,000 100,000 300,000 200,000 0 300,000 210,000 112 M Med - 2 Housing Development - Ray Tiller Sewer 150,000 140,000 0 0 0 0 0 185 L Low - 1 Northeast Industrial Park 0 0 0 0 0 0 0 33 L Low - 1 San Marnan Drive Economic Development 0 0 0 0 0 0 0 152 L Low - 1 Logan Tax Increment 0 0 0 0 0 0 0 58 L Low - 1 GIS/GPS Mapping 0 0 0 0 0 5,000 0 248 L Low - 1 Complete Streets 0 0 0 0 0 0 0 L Low - 1 Highland Neighborhood Place Making & Promotio 0 0 0 0 0 0 0 L Low - 1 Dunsmore House Restoration Project 0 0 0 0 0 0 0 L Low - 1 Historic Survey - Church Row Neighborhood 0 0 0 0 0 0 0 L Low - 1 Revolving Loan Fund 0 0 0 0 0 0 0 Total - Planning and Development 850,000 830,000 1,130,000 785,000 0 935,000 785,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m Revision 4Ragfm3gtif312Q43 CIP Planning 2/21/2018 9:29 AM Page 2 Proj. Priority AIRPORT FY18CIP Requested Approved TIF Taxable Gaming FY18CIP Requested Approved FY18CIP # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 H High - lA Replacemnt of Street/Parking Lot Light Head Fixtures 0 13,000 13,000 0 0 0 0 265 H High - 1B Pavement Rehab - Terminal Area Parking Lots 100,000 150,000 0 100,000 0 0 0 276 M Med - 2 Replace Vehicles - Airport Admin. 0 35,000 0 0 0 0 0 266 H High - lA Rehab FBO, Hangar 4 and Fire Dept. Parking Lots 0 200,000 37,000 0 0 0 150,000 H High - 1B Purchase of Electronic Decelerometer 0 0 0 0 35,000 30,000 0 267 H High - 1 Street Rehab - Livingston Ln & Betsworth Dr. 0 0 0 0 0 0 0 278 H High - 1 Street Rehab - Airport Blvd. Phase 1 of 2 0 0 0 0 0 0 0 H High - 1 Street Rehab - Airport Blvd. Phase 2 of 2 0 0 0 0 0 0 0 H High - 2 Replacement of Terminal Carpet - First Floor Only Phase 1 0 0 0 0 0 0 0 H High - 1 Matching Funds for FAA Funded Projects 0 125,000 0 0 125,000 0 0 277 H High Replace Fuel Mgt. Sytem for Airport Vehicles 0 0 0 50,000 0 0 0 Total - Airport 100,000 523,000 50,000 0 0 0 150,000 160,000 30,000 150,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 488,000 35,000 0 523,000 0 02 23 18 Final 8m Revision All Years - 2019-2023 CIP - Dept Money Rearranging Page 1 Page 36 of 291 Proj. Priority AIRPORT Requested Approved FY18CIP Requested Approved FY18CIP Requested Approved # Rank Project FY21 FY21 FY22 FY22 FY22 FY23 FY23 FY23 H High - lA Replacemnt of Street/Parking Lot Light Head Fixtures 0 0 0 0 0 0 0 0 265 H High - 1B Pavement Rehab - Terminal Area Parking Lots 0 0 0 0 0 0 0 0 276 M Med - 2 Replace Vehicles - Airport Admin. 0 0 0 0 0 0 0 0 266 H High - lA Rehab FBO, Hangar 4 and Fire Dept. Parking Lots 0 100,000 100,000 0 50,000 0 0 0 H High - 1B Purchase of Electronic Decelerometer 0 0 0 0 0 0 0 0 267 H High - 1 Street Rehab - Livingston Ln & Betsworth Dr. 200,000 0 0 0 0 0 0 0 278 H High - 1 Street Rehab - Airport Blvd. Phase 1 of 2 0 0 0 200,000 0 0 0 0 H High - 1 Street Rehab - Airport Blvd. Phase 2 of 2 0 0 0 0 0 0 200,000 0 H High - 2 Replacement of Terminal Carpet - First Floor Only Phase 1 0 0 0 0 0 0 200,000 0 H High - 1 Matching Funds for FAA Funded Projects 125,000 0 0 125,000 0 0 125,000 0 277 H High Replace Fuel Mgt. Sytem for Airport Vehicles 0 0 0 0 0 0 Total - Airport 325,000 100,000 100,000 325,000 50,000 0 525,000 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 02 23 18 Final 8m Revision All Years - 2019-2023 CIP - Dept Money Rearranging Page 2 Page 37 of 291 Proj. Priority ENGINEERING FY18CIP Requested Approved TIF Taxable Gaming FY18CIP Requested Approved FY18CIP Requested # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 193 H High - 1 Biennial Bridge Inspections 50,000 65,000 65,000 0 0 0 75,000 75,000 61 H High - 2 Virden Creek Levee 1,700,000 1,850,000 1,850,000 0 0 0 0 0 52 H High -3 Sidewalk Repair/ADA Ramp Compliance 150,000 400,000 290,000 250,000 300,000 175,000 250,000 250,000 279 H High - 4 Flood Control (2016 Flood Issues) 100,000 30,000 0 0 0 0 0 0 81 H High - 5 Flood Control Improvements 100,000 450,000 200,000 50,000 450,000 200,000 50,000 360,000 62 H High - 6 Levee Clear Zone Tree Removal 412,000 300,000 220,000 492,000 300,000 207,500 0 0 16 H High - 7 Bikeway Maintenance 20,000 40,000 0 20,000 30,000 20,000 10,000 30,000 57 H High - 8 Sergeant Rd Bike Trail Bridge Replacement 0 60,000 0 20,000 0 0 100,000 0 H High - 9 Hwy 63 & Ranchero Pedestrian Crossing 0 50,000 0 0 0 0 0 0 80 M Med - 1 Allen Hospital Area Stoma Water Improvements 0 40,000 0 0 600,000 150,000 0 600,000 82 M Med - 2 Downtown Brick Repairs (Expo/Jefferson/Viaduct) 0 250,000 0 0 50,000 40,000 0 250,000 251 M Med - 3 Sidewalk Infill (Carver & Irving School Areas) 0 110,000 0 0 0 0 0 0 22 L Low Storm Sewer Improvements 20,000 0 0 50,000 0 0 100,000 50,000 27 L Low Virden Creek Dam Repairs 0 0 0 50,000 0 0 27,000 0 53 L Low Hammond Ave Bridge Replacement 0 0 0 100,000 325,000 250,000 300,000 325,000 74 L Low Park Avenue Bridge Replacement 300,000 0 0 600,000 1,400,000 1,050,000 1,100,000 1,400,000 175 L Low Bridge Repairs - Various Locations 50,000 0 0 100,000 150,000 100,000 100,000 150,000 26 L Low US Hwy 63 (South & Middle Segment) - Match 500,000 0 0 100,000 225,000 175,000 0 225,000 91 L Low Delane Avenue Drainage Project - Phase II 0 0 0 400,000 800,000 515,000 600,000 800,000 69 L Low Hammond Ave Paving 0 0 0 50,000 100,000 40,000 0 450,000 75 L Low Lower Sink Creek Improvements 0 0 0 100,000 0 0 100,000 200,000 167 L Low Clark Street Drainage Improvements 0 0 0 0 0 0 0 0 83 L Low Cloverdale Acres Storm Water - North 0 0 0 0 0 0 0 0 124 L Low 4th St Bridge Walkway Canopy Repairs & Painting 50,000 0 0 0 0 0 0 0 20 L Low Entertainment Area Parking Lot (Dental Lab) 40,000 0 0 300,000 0 0 400,000 0 Total - Engineering 3,492,000 3,645,000 2,625,000 0 0 0 2,682,000 4,730,000 2,922,500 3,212,000 5,165,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 3,245,000 400,000 0 3,645,000 0 02 23 18 Final 8m Revision All Years - 201F 38, olpQ9fyloney Rearranging Eng 2/23/2018 2:05 PM Page 1 Proj. _ Priority ENGINEERING Approved FY18CIP Requested Approved FY18CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 193 H High - 1 Biennial Bridge Inspections 60,000 0 0 0 0 85,000 80,000 61 H High - 2 Virden Creek Levee 0 0 0 0 0 0 0 52 H High -3 Sidewalk Repair/ADA Ramp Compliance 150,000 250,000 250,000 150,000 0 250,000 240,000 279 H High - 4 Flood Control (2016 Flood Issues) 0 0 0 0 0 0 0 81 H High - 5 Flood Control Improvements 175,000 100,000 500,000 250,000 0 510,000 460,000 62 H High - 6 Levee Clear Zone Tree Removal 0 0 0 0 0 0 0 16 H High - 7 Bikeway Maintenance 20,000 10,000 30,000 20,000 0 30,000 30,000 57 H High - 8 Sergeant Rd Bike Trail Bridge Replacement 0 0 0 0 0 0 0 H High - 9 Hwy 63 & Ranchero Pedestrian Crossing 0 0 0 0 0 0 0 80 M Med - 1 Allen Hospital Area Stoma Water Improvements 393,000 0 600,000 450,000 0 600,000 560,000 82 M Med - 2 Downtown Brick Repairs (Expo/Jefferson/Viaduct) 60,000 0 250,000 70,000 0 50,000 45,000 251 M Med - 3 Sidewalk Infill (Carver & Irving School Areas) 0 0 0 0 0 0 0 22 L Low Storm Sewer Improvements 20,000 80,000 100,000 40,000 0 50,000 45,000 27 L Low Virden Creek Dam Repairs 0 0 0 0 0 250,000 200,000 53 L Low Hammond Ave Bridge Replacement 200,000 300,000 0 0 0 0 0 74 L Low Park Avenue Bridge Replacement 1,000,000 2,000,000 1,400,000 1,000,000 0 1,400,000 1,250,000 175 L Low Bridge Repairs - Various Locations 100,000 150,000 150,000 80,000 0 150,000 135,000 26 L Low US Hwy 63 (South & Middle Segment) - Match 150,000 0 0 0 0 0 0 91 L Low Delane Avenue Drainage Project - Phase II 400,000 600,000 800,000 600,000 0 0 0 69 L Low Hammond Ave Paving 250,000 0 450,000 350,000 0 0 0 75 L Low Lower Sink Creek Improvements 100,000 100,000 1,000,000 800,000 0 1,000,000 890,000 167 L Low Clark Street Drainage Improvements 0 0 0 0 0 0 0 83 L Low Cloverdale Acres Storm Water - North 0 200,000 0 0 0 200,000 100,000 124 L Low 4th St Bridge Walkway Canopy Repairs & Painting 0 0 0 0 0 0 0 20 L Low Entertainment Area Parking Lot (Dental Lab) 0 300,000 0 0 0 0 0 Total - Engineering 3,078,000 4,090,000 5,530,000 3,810,000 0 4,575,000 4,035,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 02 23 18 Final 8m Revision All Years - 201F :rs Lsppolp419fj/loney Rearranging Eng 2/23/2018 2:05 PM Page 2 Proj. Priority FINANCE FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP Requested # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 109 H High - 1 G.O. Bond Costs 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 Total - Finance 125,000 125,000 125,000 0 0 0 125,000 125,000 125,000 125,000 125,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 125,000 0 0 125,000 0 v2 - 02 12 18 Final 8m Revision , l r4Qfi -Qg23 CIP Finance 2/19/2018 11:57 AM Page 1 Proj. Priority FINANCE Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 109 H High - 1 G.O. Bond Costs 125,000 125,000 125,000 125,000 0 125,000 125,000 Total - Finance 125,000 125,000 125,000 125,000 0 125,000 125,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m Revision pats@ 412602-W123 CIP Finance 2/19/2018 11:57 AM Page 2 Proj. Priority FIRE RESCUE FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP Requested # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 161 H High - 1 Replace Engine #303 0 575,000 550,000 375,000 0 0 300,000 0 H High - 1 Replace Engine #301 0 0 0 0 0 0 0 750,000 156 H High - 2 Equipment and Uniforms 10,000 80,000 30,000 20,000 100,000 45,000 20,000 80,000 30 H High - 3 Brush Truck Replacement 60,000 145,000 0 0 0 0 0 0 108 H High New Aerial Truck (Ladder) 0 0 0 0 1,100,000 800,000 400,000 0 236 H High Ambulance Replacement 0 0 0 0 0 0 0 215,000 280 H High Command Vehicle Replacement 0 0 0 50,000 0 0 H High Cardiac Monitors 0 0 0 0 0 0 0 300,000 M Med Fire Marshal Vehicle 0 0 0 0 0 0 0 0 Total - Fire Rescue 70,000 800,000 580,000 0 0 0 445,000 1,200,000 845,000 720,000 1,345,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 800,000 0 0 800,000 0 v2 - 02 12 18 Final 8m RevisioP,IP42-1M4023 CIP Fire 2/19/2018 11:57 AM Page 1 Proj. Priority FIRE RESCUE Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 161 H High - 1 Replace Engine #303 0 0 0 0 0 0 0 H High - 1 Replace Engine #301 400,000 0 0 225,000 0 0 0 156 H High - 2 Equipment and Uniforms 20,000 10,000 40,000 20,000 0 40,000 20,000 30 H High - 3 Brush Truck Replacement 0 0 0 0 0 0 0 108 H High New Aerial Truck (Ladder) 200,000 200,000 0 0 0 0 0 236 H High Ambulance Replacement 175,000 0 0 0 0 0 0 280 H High Command Vehicle Replacement 0 0 0 H High Cardiac Monitors 0 0 0 0 0 0 0 M Med Fire Marshal Vehicle 0 0 0 0 0 100,000 70,000 Total - Fire Rescue 795,000 210,000 40,000 245,000 0 140,000 90,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m RevisioRip4$-6M4023 CIP Fire 2/19/2018 11:57 AM Page 2 Proj. Priority INFORMATION SERVICES FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 H High - 1 City Hall UPS (Battery Backup) 0 20,000 20,000 0 26,000 6,000 58 H High - 2 Geographical Information Systems (GIS) 30,000 50,000 50,000 30,000 50,000 40,000 45 M Med - 3 Computer/Technology Replacement Program 0 20,000 5,000 34,000 20,000 5,000 M Med - 4 Network Switch Improvements 0 0 0 0 0 0 M Med - 5 Storage and Virtualization Needs 0 0 0 0 0 0 M Med - 6 E-mail Filtering and Archiving 0 0 0 0 20,000 0 L Low - 7 Conference Room Technologh Upgrades 0 0 0 0 5,000 0 138 M Med Communications Medium Modernization 0 0 0 0 0 234 H High CATV Studio Upgrades 30,000 0 0 10,000 0 0 238 H High Business Continuity (Offsite Backup/Disaster Recovery 40,000 0 0 0 0 0 Total - Information Services 100,000 90,000 75,000 0 0 0 74,000 121,000 51,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 70,000 20,000 0 90,000 0 v2 - 02 12 18 Final 8m RevisiOggef fsof22 2023 CIP IT 2/19/2018 11:58 AM Page 1 Proj. Priority INFORMATION SERVICES FY18 CIP Requested Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY21 FY21 FY21 FY22 FY22 FY22 FY23 FY23 FY23 H High - 1 City Hall UPS (Battery Backup) 0 0 0 0 0 0 0 0 0 58 H High - 2 Geographical Information Systems (GIS) 0 50,000 40,000 0 0 0 0 0 0 45 M Med - 3 Computer/Technology Replacement Program 40,000 20,000 10,000 10,000 0 0 0 0 0 M Med - 4 Network Switch Improvements 0 25,000 0 0 0 0 0 15,000 15,000 M Med - 5 Storage and Virtualization Needs 0 40,000 0 0 40,000 10,000 0 0 0 M Med - 6 E-mail Filtering and Archiving 0 0 0 0 0 0 0 0 0 L Low - 7 Conference Room Technologh Upgrades 0 0 0 0 0 0 0 0 0 138 M Med Communications Medium Modernization 25,000 0 0 0 0 0 0 0 0 234 H High CATV Studio Upgrades 0 0 0 0 0 0 0 0 0 238 H High Business Continuity (Offsite Backup/Disaster Recovery 0 0 0 0 0 0 0 0 0 Total - Information Services 65,000 135,000 50,000 10,000 40,000 10,000 0 15,000 15,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m RevisiOggefeWspf22 2023 CIP IT 2/19/2018 11:58 AM Page 2 Proj. Priority LEISURE SERVICES FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 29 H High -1 Ash Replacement Program 200,000 300,000 300,000 300,000 300,000 250,000 200,000 14 H High - 2 Park Improvement Fund 50,000 100,000 70,000 60,000 100,000 75,000 60,000 119 H High - 3 Chemical Storage Building 10,000 25,000 20,000 35,000 0 0 0 15 H High - 4 Golf Course Improvement Fund 50,000 150,000 40,000 60,000 150,000 60,000 70,000 39 H High - 5 Young Arena Improvements 20,000 100,000 40,000 100,000 100,000 60,000 20,000 148 H High - 6 Sports Facilities Improvement Fund 10,000 100,000 30,000 20,000 75,000 60,000 10,000 111 H High - 7 DT Area Maint. Infrastructure Imp. & Rep. 10,000 35,000 35,000 35,000 35,000 30,000 10,000 H High -8 Skate Park Replacment Fund 0 150,000 75,000 75,000 0 0 0 0 184 H High - 9 Off Road Maintenance Equipment - Parks 50,000 250,000 30,000 100,000 230,000 120,000 50,000 113 H High - 10 Off Road Maintenance Equipment - Golf 50,000 261,000 30,000 80,000 229,000 100,000 50,000 115 H High - 11 Off Road Maintenance Equipment - DT 50,000 40,000 20,000 55,000 55,000 40,000 50,000 120 H High - 12 Off Road Maintenance Equip. Young Arena 0 25,000 0 20,000 16,000 11,000 0 18 H High - 13 Riverfront Stadium Improvement Fund 20,000 25,000 12,500 12,500 10,000 25,000 12,500 10,000 H High - 14 Parking Lot Improvement Fund (All Park Lots) 0 75,000 0 0 75,000 0 0 38 H High - 15 Equipment Storage Building 0 150,000 0 0 0 0 0 131 M Med - 1 Katoski Greenbelt Maintenance 2,000 5,000 2,000 5,000 5,000 2,000 5,000 122 M Med - 2 Riverview Park Improvements 0 15,000 0 0 15,000 0 5,000 249 M Med - 3 Riverview Park Jetty Stabilization 0 60,000 0 0 0 0 0 77 M Med - 4 Playground/Park Inspection and Software 1,000 5,000 0 5,000 5,000 0 1,000 M Med - 5 Security System for 1101 Campbell Ave 0 40,000 0 0 0 0 0 19 M Med - 6 Tennis Improvements 0 7,500 0 0 75,000 25,000 5,000 283 M Med - 7 Sportsplex Improvement Fund 0 30,000 0 0 50,000 10,000 10,000 282 H High Downtown Area Maintenance Bldg. 50,000 0 0 40,000 0 0 30,000 Total - Leisure Services 573,000 1,948,500 704,500 0 0 87,500 925,000 1,540,000 855,500 586,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 1,786,000 162,500 0 1,948,500 0 v2 - 02 12 18 Final 8m Revision ipaiger4626f120C123 CIP Leis Ser 2/19/2018 11:58 AM Page 1 Proj. Priority LEISURE SERVICES Requested Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY21 FY21 FY22 FY22 FV22 FY23 FY23 FY23 29 H High -1 Ash Replacement Program 150,000 100,000 200,000 0 0 0 0 0 14 H High - 2 Park Improvement Fund 100,000 60,000 60,000 100,000 75,000 0 100,000 90,000 119 H High - 3 Chemical Storage Building 0 0 0 0 0 0 0 0 15 H High - 4 Golf Course Improvement Fund 150,000 100,000 70,000 150,000 120,000 0 150,000 130,000 39 H High - 5 Young Arena Improvements 100,000 60,000 50,000 100,000 70,000 0 100,000 85,000 148 H High - 6 Sports Facilities Improvement Fund 75,000 50,000 10,000 50,000 40,000 0 50,000 45,000 111 H High - 7 DT Area Maint. Infrastructure Imp. & Rep. 35,000 25,000 10,000 35,000 30,000 0 35,000 30,000 H High -8 Skate Park Replacment Fund 0 0 0 0 0 0 0 0 184 H High - 9 Off Road Maintenance Equipment - Parks 165,000 105,000 50,000 260,000 130,000 0 208,000 175,000 113 H High - 10 Off Road Maintenance Equipment - Golf 231,000 100,000 50,000 230,000 100,000 0 223,000 160,000 115 H High - 11 Off Road Maintenance Equipment - DT 55,000 40,000 50,000 60,000 40,000 0 60,000 50,000 120 H High - 12 Off Road Maintenance Equip. Young Arena 0 0 0 0 0 0 0 0 18 H High - 13 Riverfront Stadium Improvement Fund 25,000 0 0 25,000 0 0 25,000 0 H High - 14 Parking Lot Improvement Fund (All Park Lots) 0 0 0 0 0 0 0 0 38 H High - 15 Equipment Storage Building 0 0 0 0 0 0 0 0 131 M Med - 1 Katoski Greenbelt Maintenance 5,000 2,000 5,000 5,000 2,000 0 5,000 1,000 122 M Med - 2 Riverview Park Improvements 15,000 0 0 15,000 0 0 15,000 7,500 249 M Med - 3 Riverview Park Jetty Stabilization 0 0 0 0 0 0 0 0 77 M Med - 4 Playground/Park Inspection and Software 5,000 0 3,000 5,000 5,000 0 5,000 5,000 M Med - 5 Security System for 1101 Campbell Ave 0 0 0 0 0 0 0 0 19 M Med - 6 Tennis Improvements 75,000 0 5,000 75,000 0 0 50,000 50,000 283 M Med - 7 Sportsplex Improvement Fund 50,000 0 10,000 75,000 0 0 75,000 65,000 282 H High Downtown Area Maintenance Bldg. 0 0 0 0 0 0 0 0 Total - Leisure Services 1,236,000 642,000 573,000 1,185,000 612,000 0 1,101,000 893,500 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m Revision ipaiger4726f120C123 CIP Leis Ser 2/19/2018 11:58 AM Page 2 Proj. Priority LIBRARY FY18CIP Requested Approved TIF Taxable Gaming FY18CIP Requested Approved FY18CIP Requested_ # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 286 H High - 1 DVD/Blu Ray Theft Reduction 0 60,000 25,000 25,000 0 0 0 0 0 M Med - 1 Library Book Mobile 0 0 0 0 0 250,000 0 0 0 285 M Med - 2 RFID Security Gates 18,000 18,000 0 0 0 0 0 0 0 Total - Library 18,000 78,000 25,000 0 0 25,000 0 250,000 0 0 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 60,000 18,000 0 78,000 0 v2 - 02 12 18 Final 8m RevisioPti 8-an4023 CIP Libr 2/19/2018 11:58 AM Page 1 Proj. Priority LIBRARY Approved FY18CIP Requested Approved FY18CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 286 H High - 1 DVD/Blu Ray Theft Reduction 0 0 0 0 0 0 0 M Med - 1 Library Book Mobile 0 0 0 0 0 0 0 285 M Med - 2 RFID Security Gates 0 0 0 0 0 0 0 Total - Library 0 0 0 0 0 0 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m RevisioPti-an4023 CIP Libr 2/19/2018 11:58 AM Page 2 Proj. Priority POLICE FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP Requested # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 149 H High - 1 Tasers 10,000 42,000 42,000 0 20,000 42,000 25,000 20,000 42,000 116 H High - 2 Body Armor Replacement 10,000 20,000 20,000 0 10,000 20,000 10,000 15,000 20,000 241 H High - 3 Police Vehicle Impound Storage Bldg 5,000 200,000 0 250,000 30,000 5,000 0 5,000 5,000 158 H High - 4 Police Information System Program 45,000 150,000 100,000 0 100,000 160,000 100,000 50,000 160,000 114 H High - 5 LED Emergency Lightbars & Vehicle Equipment 20,000 40,000 40,000 0 10,000 40,000 35,000 20,000 55,000 140 H High - 6 Police Department Improvements 0 100,000 50,000 0 5,000 20,000 10,000 10,000 10,000 159 H High - 7 In Car Audio/Video Cameras 20,000 25,000 20,000 0 20,000 25,000 20,000 20,000 25,000 117 M Med - 8 Weapon Replacement Program 5,000 15,000 10,000 0 5,000 15,000 5,000 10,000 15,000 129 M Med - 9 Police Training Center Upgrades 0 10,000 0 0 0 10,000 4,000 0 5,000 118 M Med - 10 Office Equipment and Furniture Replacement 0 10,000 0 0 0 10,000 0 10,000 10,000 M Med - 11 Crash Date Recording Equipment 0 12,000 0 0 0 1,000 0 0 1,000 290 M Med - 12 Digital Evidence Mgt. System 10,000 30,000 0 0 10,000 10,000 0 5,000 5,000 287 M Med - 13 Crowd Control Equipment 5,000 5,000 0 0 0 5,000 0 5,000 5,000 288 M Med - 14 Gas Masks 0 12,000 0 0 0 5,000 0 0 0 195 L Low - 15 Body Cameras 0 5,000 0 0 0 5,000 0 5,000 5,000 160 M Med Radar Units 0 3,000 3,000 0 0 0 0 0 0 289 L Low Speed Trailer 0 0 0 0 0 0 0 0 0 Total - Police 130,000 679,000 285,000 0 0 250,000 210,000 373,000 209,000 175,000 363,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 577,000 97,000 5,000 679,000 0 02 23 18 Final 8m Revision All Years - 201F?RO®0 -ennoney Rearranging Police 2/23/2018 2:06 PM Page 1 Proj. Priority POLICE Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 149 H High - 1 Tasers 20,000 20,000 15,000 10,000 0 15,000 10,000 116 H High - 2 Body Armor Replacement 10,000 15,000 20,000 15,000 0 20,000 15,000 241 H High - 3 Police Vehicle Impound Storage Bldg 0 0 5,000 0 0 5,000 0 158 H High - 4 Police Information System Program 90,000 50,000 170,000 115,000 0 180,000 140,000 114 H High - 5 LED Emergency Lightbars & Vehicle Equipment 35,000 30,000 55,000 40,000 0 55,000 45,000 140 H High - 6 Police Department Improvements 0 5,000 5,000 0 0 5,000 4,000 159 H High - 7 In Car Audio/Video Cameras 15,000 20,000 25,000 15,000 0 25,000 20,000 117 M Med - 8 Weapon Replacement Program 5,000 10,000 10,000 5,000 0 10,000 7,500 129 M Med - 9 Police Training Center Upgrades 2,000 0 5,000 2,000 0 5,000 2,000 118 M Med - 10 Office Equipment and Furniture Replacement 4,000 10,000 10,000 4,000 0 10,000 5,000 M Med - 11 Crash Date Recording Equipment 8,000 0 500 2,000 0 500 2,000 290 M Med - 12 Digital Evidence Mgt. System 0 5,000 5,000 0 0 5,000 0 287 M Med - 13 Crowd Control Equipment 0 0 5,000 0 0 5,000 0 288 M Med - 14 Gas Masks 0 0 0 0 0 0 0 195 L Low - 15 Body Cameras 0 0 5,000 0 0 5,000 0 160 M Med Radar Units 0 0 0 0 0 0 0 289 L Low Speed Trailer 0 0 0 0 0 0 0 Total - Police 189,000 165,000 335,500 208,000 0 345,500 250,500 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 02 23 18 Final 8m Revision All Years - 201?10v -cingiloney Rearranging Police 2/23/2018 2:06 PM Page 2 Proj. Priority SIGN & TRAFFIC FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP Requested # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 H High - 1 Ansb. Ave Traffic Adaptive System and Fiber Proj. 0 98,250 96,500 0 0 0 0 0 130 H High -2 Street Light Improvements 0 30,000 20,000 10,000 30,000 10,000 10,000 30,000 181 H High -3 Traffic Safety Improvement Projects 30,000 50,000 0 40,000 50,000 10,000 10,000 40,000 H High - 4 Street Light LED Replacment Program 0 20,000 0 0 20,000 5,000 0 20,000 244 H High - 5 Upgrading Controllers and Cabinets to Fiber Optics 60,000 80,000 50,000 45,000 60,000 10,000 20,000 45,000 215 H High - 6 Video Detection Cameras and/or Radar Units 30,000 60,000 0 30,000 60,000 0 40,000 60,000 H High - 7 W Ridgeway Ave Improvements Project 0 100,000 0 0 0 0 0 0 102 H High -8 Street Sign Fabrication Equipment & Software 0 60,000 20,000 10,000 60,000 10,000 10,000 60,000 293 H High - 9 Battery Back -Up Project 4,000 5,000 5,000 4,000 5,000 2,000 4,000 5,000 245 H High - 10 Early Warning Sirens 10,000 40,000 25,000 0 45,000 25,000 20,000 45,000 222 H High -11 Greenhill Rd & Progress Ave Traffic Signalization 0 60,000 40,000 0 200,000 125,000 0 0 21 H High - 12 Thermoplastic Pavement Markings 0 12,000 0 5,000 12,000 5,000 10,000 12,000 163 H High - 13 Traffic Signal LED Replacment Program 20,000 20,000 0 20,000 20,000 0 30,000 20,000 213 H High - 14 Franklin Street Signal Replacement/Upgrades 20,000 60,000 0 30,000 60,000 0 20,000 60,000 65 M Med - 15 Downing Ave & Wren Rd Signal Project 0 22,000 0 0 0 20,000 0 0 218 M Med - 16 W 6th St & Williston Ave Signal Project 0 22,000 0 0 0 0 0 0 242 M Med - 17 W 4th St & Hubbard Ave. Signal Project 0 22,000 0 0 0 0 0 0 291 H High - 18 Advanced Traffic Mgt. System Center 40,000 0 0 0 40,000 40,000 0 0 H High - 19 Downtown Fiber and Monitoring Cameras 0 0 0 0 100,000 0 0 0 212 H High - 20 Tower Park Street Light Improvements 0 0 0 0 60,000 0 0 0 H High - 21 Vinton St and Independence Ave Signal Installation 0 0 0 0 130,000 0 0 0 219 H High - 22 Conger/River Rd/Westfield Ave Signal Project 0 0 0 50,000 275,000 0 0 0 246 M Med - 23 Traffic Safety Improvement - Fletcher & Hwy 63 0 0 0 0 175,000 0 75,000 0 294 M Med - 24 Traffic Safety Improvement - Utica & Harrison 0 0 0 20,000 250,000 0 40,000 0 H High - 25 Kimball Ave and Shaulis Rd Roundabout Project 0 0 0 0 0 0 0 500,000 H High - 26 Flammang Dr. Frontage Rd. Project 0 0 0 0 0 0 0 0 56 H High Traffic Signal Improvements 20,000 0 0 20,000 0 0 20,000 0 Total - Traffic Safety 234,000 761,250 256,500 0 0 0 284,000 1,652,000 262,000 309,000 897,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Corss-foot Check 695,250 66,000 0 761,250 0 v2 - 02 12 18 Final 8m Revision17440152 R§(1 ng23 CIP Traffic 2/19/2018 11:59 AM Page 1 Proj. Priority SIGN & TRAFFIC Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 H High - 1 Ansb. Ave Traffic Adaptive System and Fiber Proj. 0 0 0 0 0 0 0 130 H High -2 Street Light Improvements 20,000 10,000 30,000 20,000 0 30,000 25,000 181 H High -3 Traffic Safety Improvement Projects 20,000 20,000 40,000 25,000 0 40,000 35,000 H High - 4 Street Light LED Replacment Program 10,000 0 20,000 15,000 0 20,000 15,000 244 H High - 5 Upgrading Controllers and Cabinets to Fiber Optics 20,000 20,000 45,000 25,000 0 45,000 30,000 215 H High - 6 Video Detection Cameras and/or Radar Units 25,000 50,000 60,000 25,000 0 60,000 0 H High - 7 W Ridgeway Ave Improvements Project 0 0 0 0 0 0 0 102 H High -8 Street Sign Fabrication Equipment & Software 35,000 10,000 60,000 20,000 0 60,000 40,000 293 H High - 9 Battery Back -Up Project 3,000 4,000 5,000 4,000 0 5,000 3,000 245 H High - 10 Early Warning Sirens 30,000 20,000 45,000 30,000 0 45,000 30,000 222 H High -11 Greenhill Rd & Progress Ave Traffic Signalization 40,000 0 0 0 0 0 0 21 H High - 12 Thermoplastic Pavement Markings 8,000 10,000 12,000 10,000 0 12,000 7,000 163 H High - 13 Traffic Signal LED Replacment Program 10,000 30,000 20,000 0 0 20,000 10,000 213 H High - 14 Franklin Street Signal Replacement/Upgrades 30,000 40,000 60,000 40,000 0 60,000 30,000 65 M Med - 15 Downing Ave & Wren Rd Signal Project 0 0 0 0 0 0 218 M Med - 16 W 6th St & Williston Ave Signal Project 20,000 0 0 0 0 0 242 M Med - 17 W 4th St & Hubbard Ave. Signal Project 0 0 0 20,000 0 0 0 291 H High - 18 Advanced Traffic Mgt. System Center 0 0 0 0 0 20,000 H High - 19 Downtown Fiber and Monitoring Cameras 0 0 0 0 0 0 212 H High - 20 Tower Park Street Light Improvements 0 0 0 0 0 0 H High - 21 Vinton St and Independence Ave Signal Installation 0 0 0 0 0 0 219 H High - 22 Conger/River Rd/Westfield Ave Signal Project 0 0 0 0 0 0 246 M Med - 23 Traffic Safety Improvement - Fletcher & Hwy 63 0 0 0 0 0 0 294 M Med - 24 Traffic Safety Improvement - Utica & Harrison 0 0 0 0 0 0 H High - 25 Kimball Ave and Shaulis Rd Roundabout Project 0 0 0 0 0 0 H High - 26 Flammang Dr. Frontage Rd. Project 0 0 200,000 0 0 50,000 56 H High Traffic Signal Improvements 0 10,000 0 0 0 0 Total - Traffic Safety 271,000 224,000 597,000 234,000 0 397,000 295,000 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Corss-foot Check v2 - 02 12 18 Final 8m RevisionRtg401532 1 9823 CIP Traffic 2/19/2018 11:59 AM Page 2 Proj. Priority Code Enforecment FY18 CIP Requested Approved TIF Taxable Gaming FY18 CIP Requested Approved FY18 CIP Requested # Rank Project FY19 FY19 FY19 Bonds Requests FY20 FY20 FY20 FY21 FY21 H High -1 Code Enforcment Software Upgrade 0 0 0 0 0 0 0 0 Total - Code Enforcment 0 0 0 0 0 0 0 0 0 0 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 0 0 0 0 0 v2 - 02 12 18 Final 8m Revision AIIPMges540J9-2ge13 CIP Code Enf 2/19/2018 12:00 PM Page 1 Proj. Priority Code Enforecment Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 H High -1 Code Enforcment Software Upgrade 0 0 0 0 0 0 0 Total - Code Enforcment 0 0 0 0 0 0 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m Revision es5 0:0 2 3 CIP Code Enf 2/19/2018 12:00 PM Page 2 Proj. Priority Rank CULTURAL & ARTS Project FY18 CIP FY19 Requested FY19 Approved FY19 TIF Taxable Bonds Gaming Requests FY18 CIP FY20 Requested FY20 Approved FY20 FY18 CIP FY21 Requested FY21 # 1 40I H High Center for the Arts 0 0 0 0 0 0 0 76 H High Youth Pavillion 10,000 0 0 0 0 10,000 0 25 H High Amphitheatre 10,000 0 0 0 0 10,000 0 Total - Cultural & Arts 20,000 0 0 0 0 0 0 0 0 20,000 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check 0 0 0 0 0 v2 - 02 12 18 Final 8m Revision AINigp 291 CIP Cult & Arts 2/19/2018 11:56 AM Page 1 Proj. Priority CULTURAL & ARTS Approved FY18 CIP Requested Approved FY18 CIP Requested Approved # 1 Rank Project FY21 FY22 FY22 FY22 FY23 FY23 FY23 40I H High Center for the Arts 0 0 0 0 0 0 0 76 H High Youth Pavillion 0 0 0 0 0 0 0 25 H High Amphitheatre 0 0 0 0 0 0 0 Total - Cultural & Arts 0 0 0 0 0 0 0 H M L Subtotal High Priority Projects Subtotal Medium Priority Projects Subtotal Low Priority Projects Total Cross -foot Check v2 - 02 12 18 Final 8m Revision AID 291 CIP Cult & Arts 2/19/2018 11:56 AM Page 2 Proj. Priority Contract Proposed WASTE MANAGEMENT Bond Cash Balance Contract Balance Estimated Transfer Cash Projects Funded Unfunded FY17 CIP Requested Approved Total 1 Taxable # Rank # Fund Project 12/31/2017 12/31/2017 Project Cost to Other Proj Using Curr Bonds Cost FY18 FY18 FY18 Funding Bonds High 16AF GOS Diffuser Wing Dike Improvements 1,115,080.31 19,840.19 High GOS Street Sewer Annual Reconstruction 1,000,000 103 High 839 SRF Anaerobic Lagoon Improvements - Cover 0.00 6,000,000.00 6,000,000.00 0 High SRF Anaerobic Lagoon Bio -Gas Utilization Improvements High SRF Anaerobic Lagoon Site Imp. (Grease Removal) 0.00 0.00 0.00 0 High SRF Blower System Upgrades High SRF Cattle Congress Lift Station and Force Main Upgrades High SRF Cured in Place Pipe Impr (CIPP) - Phase III 2,000,000 High SRF Cured in Place Pipe Impr (CIPP) - Phase IV High SRF Cured In Place Pipe Impr (CIPP) - Phase V 87 High SRF Dry Run Creek Lift Station and Imterceptor Sewer 0.00 3,600,000.00 0.00 3,286,146.09 1,250,000 1,750,000 2,250,000 313,854 142 High SRF East Side Interceptor Sewer 0.00 6,400,000.00 0.00 6,400,000.00 150,000 2,500,000 350,000 High SRF Final Clarifier Dewatering System High SO Final Clarifier Repairs High SRF Easton Plan Configuration Rework High SRF Facility Plan Expected Future Plant Work 174 High SRF FEQ Overflow to Satellite 1,000,000 161 High GOS Highway 63 Sanitary Sewer Replacement (North Seg.) 658,000.00 0.00 658,000.00 658,000.00 0.00 658,000 155 High GOS US Hwy 63 (South Segment) - Sanitary Sewer 0.00 75,000.00 0.00 75,000.00 0 High SRF Lift Station Emergency Generator Program 141 High SRF Midland Street Street Pump Station (formerly Titus) 0.00 1,200,000.00 498,625.14 498,625.14 482,409.22 1,217,591 High SRF NW Interceptor - Hackett St Lift Station Replacement High SRF Satellite Plant Configuration Work High 907 SRF Satellite Wet Well Rehabilitation 9,838.59 9,838.59 205 High SRF SCADA Improvements (was Wonderware) 150,000.00 150,000.00 150,000.00 0.00 600,000 150,000 High SRF WAS System Upgrade Project High SRF Sewer Gatewell 93 Med GOS Footing Drain Removal 1,728,734.57 3,500,000 Med GOS Annual Misc. WWTP Maintenance Repairs Med SO Annual Root Control Program Med SRF Bar Screen Replacement Project Med SRF Replace Existing Filter Belt Presses 500,000 16B GOS US Hwy 63 (Jefferson to Newell) - Sanitary Sewer 540.45 540.45 78 748 SRF Northwest Interceptor Sewer 3,500.00 4,000,000.00 3,500.00 4,000,000.00 1,000,000 250,000 1,003,500 144 SRF West Side Interceptor Sewer 0.00 3,100,000.00 0.00 3,100,000.00 0 173 SRF Lift Station Upgrade or Replacement Annual Prog. 1,000,000 SO Nutrient Reduction - Facility Plan Study 139 9th Street Corridor Relief Sewer 0.00 3,000,000.00 0.00 3,000,000.00 0 176 Lift Station Rehabilitation 0.00 800,000.00 0.00 800,000.00 0 137 869 Addition of 3rd Filter Press/Sludge Dewatering Bldg 2,282.59 2,282.59 2,000,000.00 516,703.86 516,703.86 983,296.14 1,016,704 0 24 12U Drip Dispersal Treatment System (MidPort) 0.00 2,500,000.00 2,598,932.75 16,153.35 2,598,933 194 WPCF Effluent De -Nitrification 0.00 3,000,000.00 (141,969.18) (141,969.18) 2,858,030.82 0 143 I IL Infiltration and Inflow Reduction Program 0.00 (498,625.14) 19,961.42 0.00 19,961 203 City Cured in Place Pipe Impr - Phase II 2,000,000.00 300,000.00 300,000.00 1,700,000.00 1,450,000 223 Sewer Televising/Cleaning Equipment Flood Levee System Sanitary Sewer Gatewell Replacement 1,500,000 500,000 No projects identified? 190,881.46 197 Sewer Maintenance Equipment 154 Slip Lining Phase II Total - Waste Management 3,705,357.97 79,101.82 38,483,000.00 824,734.68 4,603,753.99 32,701,035.62 6,000,000 8,750,000 6,000,000 8,778,543 0 Bonds Sold -Project Not Under -Construction - uzz iz io IRR' 8m Revision All Rog 5j82�1 P29tjvingmt (3) 2/19/2018 2:21 PM Page 1 Proj. Priority Contract Proposed WASTE MANAGEMENT FY18 CIP Requested GOS SRF SO Approved FY18 CIP Requested GOS SRF SO # Rank # Fund Project FY19 FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20 High 16AF GOS Diffuser Wing Dike Improvements 850,000 0 0 0 0 0 0 High GOS Street Sewer Annual Reconstruction 500,000 0 0 500,000 500,000 0 0 103 High 839 SRF Anaerobic Lagoon Improvements - Cover 0 1,000,000 0 0 0 0 0 High SRF Anaerobic Lagoon Bio -Gas Utilization Improvements 4,000,000 0 4,000,000 0 0 0 0 0 High SRF Anaerobic Lagoon Site Imp. (Grease Removal) 250,000 0 250,000 0 0 0 0 0 High SRF Blower System Upgrades 0 0 0 0 1,500,000 0 1,500,000 0 High SRF Cattle Congress Lift Station and Force Main Upgrades 0 0 0 0 0 0 0 0 High SRF Cured in Place Pipe Impr (CIPP) - Phase III 924,000 0 924,000 0 0 0 0 0 High SRF Cured in Place Pipe Impr (CIPP) - Phase IV 1,000,000 0 1,000,000 0 1,000,000 0 1,000,000 0 High SRF Cured In Place Pipe Impr (CIPP) - Phase V 0 0 0 0 0 0 0 0 87 High SRF Dry Run Creek Lift Station and Imterceptor Sewer 1,000,000 2,000,000 0 2,000,000 0 1,000,000 1,100,000 0 1,100,000 0 142 High SRF East Side Interceptor Sewer 0 0 0 0 0 0 0 0 High SRF Final Clarifier Dewatering System 0 0 0 0 0 0 0 0 High SO Final Clarifier Repairs 100,000 0 0 100,000 125,000 0 0 125,000 High SRF Easton Plan Configuration Rework 0 0 0 0 0 0 0 0 High SRF Facility Plan Expected Future Plant Work 0 0 0 0 0 0 0 0 174 High SRF FEQ Overflow to Satellite 500,000 0 500,000 0 0 0 0 0 161 High GOS Highway 63 Sanitary Sewer Replacement (North Seg.) 70,000 70,000 0 0 0 0 0 0 155 High GOS US Hwy 63 (South Segment) - Sanitary Sewer 207,000 207,000 0 0 0 0 0 0 High SRF Lift Station Emergency Generator Program 100,000 0 100,000 0 100,000 0 100,000 0 141 High SRF Midland Street Street Pump Station (formerly Titus) 0 0 0 0 0 0 0 0 High SRF NW Interceptor - Hackett St Lift Station Replacement 0 0 0 0 4,000,000 0 4,000,000 0 High SRF Satellite Plant Configuration Work 0 0 0 0 2,500,000 0 2,500,000 0 High 907 SRF Satellite Wet Well Rehabilitation 500,000 0 500,000 0 0 0 0 0 205 High SRF SCADA Improvements (was Wonderware) 300,000 0 300,000 0 0 0 0 0 High SRF WAS System Upgrade Project 2,000,000 0 2,000,000 0 0 0 0 0 High SRF Sewer Gatewell 3,400,000 3,400,000 0 0 0 0 93 Med GOS Footing Drain Removal 500,000 500,000 0 0 500,000 500,000 0 0 Med GOS Annual Misc. WWTP Maintenance Repairs 500,000 500,000 0 0 500,000 500,000 0 0 Med SO Annual Root Control Program 0 0 0 0 500,000 0 0 500,000 Med SRF Bar Screen Replacement Project 0 0 0 0 500,000 0 500,000 0 Med SRF Replace Existing Filter Belt Presses 100,000 0 100,000 0 500,000 0 500,000 0 16B GOS US Hwy 63 (Jefferson to Newell) - Sanitary Sewer 78 748 SRF Northwest Interceptor Sewer 1,300,000 1,300,000 144 SRF West Side Interceptor Sewer 173 SRF Lift Station Upgrade or Replacement Annual Prog. SO Nutrient Reduction - Facility Plan Study 139 9th Street Corridor Relief Sewer 176 Lift Station Rehabilitation 137 869 Addition of 3rd Filter Press/Sludge Dewatering Bldg 24 12U Drip Dispersal Treatment System (MidPort) 194 WPCF Effluent De -Nitrification 143 I IL Infiltration and Inflow Reduction Program 203 City Cured in Place Pipe Impr - Phase II 223 Sewer Televising/Cleaning Equipment Flood Levee System Sanitary Sewer Gatewell Replacement No projects identified? 197 Sewer Maintenance Equipment 154 Slip Lining Phase II Total - Waste Management 2,300,000 16,451,000 2,627,000 16,074,000 100,000 0 2,300,000 9,100,000 1,500,000 11,200,000 625,000 v2 - 02 12 18 Final 8m Revision All Reg 52O1P29t1vingmt (3) 2/19/2018 2:21 PM Page 3 Proj. Priority Contract Proposed WASTE MANAGEMENT Approved FY18 CIP Requested GOS SRF SO Approved FY18 CIP Requested GOS SRF # Rank # Fund Project FY20 FY21 FY21 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 high 16AF GOS Diffuser Wing Dike Improvements 0 0 0 0 0 High GOS Street Sewer Annual Reconstruction 500,000 0 0 500,000 0 103 High 839 SRF Anaerobic Lagoon Improvements - Cover 0 0 0 0 0 High SRF Anaerobic Lagoon Bio -Gas Utilization Improvements 0 0 0 0 0 High SRF Anaerobic Lagoon Site Imp. (Grease Removal) 0 0 0 0 0 High SRF Blower System Upgrades 0 0 0 0 0 High SRF Cattle Congress Lift Station and Force Main Upgrades 725,000 0 725,000 0 580,000 0 580,000 High SRF Cured in Place Pipe Impr (CIPP) - Phase III 0 0 0 0 0 0 0 High SRF Cured in Place Pipe Impr (CIPP) - Phase IV 1,000,000 0 1,000,000 0 1,000,000 0 1,000,000 High SRF Cured In Place Pipe Impr (CIPP) - Phase V 0 0 0 0 0 0 0 87 High SRF Dry Run Creek Lift Station and Imterceptor Sewer 0 0 0 0 0 0 0 142 High SRF East Side Interceptor Sewer 2,500,000 0 2,500,000 0 3,000,000 0 3,000,000 High SRF Final Clarifier Dewatering System 0 0 0 0 0 0 0 High SO Final Clarifier Repairs 150,000 0 0 150,000 175,000 0 0 High SRF Easton Plan Configuration Rework 0 0 0 0 2,500,000 0 2,500,000 High SRF Facility Plan Expected Future Plant Work 0 0 0 0 4,000,000 0 4,000,000 174 High SRF FEQ Overflow to Satellite 0 0 0 0 0 0 0 161 High GOS Highway 63 Sanitary Sewer Replacement (North Seg.) 0 0 0 0 0 0 0 155 High GOS US Hwy 63 (South Segment) - Sanitary Sewer 0 0 0 0 0 0 0 High SRF Lift Station Emergency Generator Program 100,000 0 100,000 0 100,000 0 100,000 141 High SRF Midland Street Street Pump Station (formerly Titus) 3,000,000 0 3,000,000 0 3,000,000 0 3,000,000 High SRF NW Interceptor - Hackett St Lift Station Replacement 4,000,000 0 4,000,000 0 0 0 0 High SRF Satellite Plant Configuration Work 2,500,000 0 2,500,000 0 0 0 0 High 907 SRF Satellite Wet Well Rehabilitation 0 0 0 0 0 0 0 205 High SRF SCADA Improvements (was Wonderware) 0 0 0 0 0 0 0 High SRF WAS System Upgrade Project 0 0 0 0 0 0 0 High SRF Sewer Gatewell 0 0 0 0 0 0 0 93 Med GOS Footing Drain Removal 500,000 500,000 0 0 500,000 500,000 0 Med GOS Annual Misc. WWTP Maintenance Repairs 500,000 500,000 0 0 500,000 500,000 0 Med SO Annual Root Control Program 0 0 0 0 0 0 0 Med SRF Bar Screen Replacement Project 0 0 0 0 0 0 0 Med SRF Replace Existing Filter Belt Presses 500,000 0 500,000 0 0 0 0 16B GOS US Hwy 63 (Jefferson to Newell) - Sanitary Sewer 78 748 SRF Northwest Interceptor Sewer 144 SRF West Side Interceptor Sewer 173 SRF Lift Station Upgrade or Replacement Annual Prog. 1,000,000 SO Nutrient Reduction - Facility Plan Study 139 9th Street Corridor Relief Sewer 176 Lift Station Rehabilitation 137 869 Addition of 3rd Filter Press/Sludge Dewatering Bldg 24 12U Drip Dispersal Treatment System (MidPort) 194 WPCF Effluent De -Nitrification 143 I IL Infiltration and Inflow Reduction Program 203 City Cured in Place Pipe Impr - Phase II 223 Sewer Televising/Cleaning Equipment Flood Levee System Sanitary Sewer Gatewell Replacement No projects identified? 197 Sewer Maintenance Equipment 154 Slip Lining Phase II Total - Waste Management 0 1,000,000 15,475,000 1,500,000 14,325,000 150,000 0 0 15,355,000 1,500,000 14,180,000 v2 - 02 12 18 Final 8m Revision All ,deg 6020P29t1vingmt (3) 2/19/2018 2:21 PM Page 5 Proj. Priority Contract Proposed WASTE MANAGEMENT SO Approved FY18 CIP Requested GOS SRF SO Approved Total Funding # Rank # Fund Project FY21 FY22 FY23 FY23 FY23 FY23 FY23 FY23 High 16AF GOS Diffuser Wing Dike Improvements 0 0 0 0 0 High GOS Street Sewer Annual Reconstruction 0 0 500,000 0 0 103 High 839 SRF Anaerobic Lagoon Improvements - Cover 0 0 0 0 0 (1 High SRF Anaerobic Lagoon Bio -Gas Utilization Improvements 0 0 0 0 0 High SRF Anaerobic Lagoon Site Imp. (Grease Removal) 0 0 0 0 0 0 High SRF Blower System Upgrades 0 0 0 0 0 High SRF Cattle Congress Lift Station and Force Main Upgrades 0 0 0 0 0 0 High SRF Cured in Place Pipe Impr (CIPP) - Phase III 0 0 0 0 0 0 0 High SRF Cured in Place Pipe Impr (CIPP) - Phase IV 0 0 1,000,000 0 1,000,000 0 High SRF Cured In Place Pipe Impr (CIPP) - Phase V 0 0 0 0 0 0 87 High SRF Dry Run Creek Lift Station and Imterceptor Sewer 0 0 0 0 0 0 0 142 High SRF East Side Interceptor Sewer 0 0 3,000,000 0 3,000,000 0 0 High SRF Final Clarifier Dewatering System 0 0 0 0 0 0 High SO Final Clarifier Repairs 175,000 0 0 0 0 0 High SRF Easton Plan Configuration Rework 0 0 2,500,000 0 2,500,000 0 High SRF Facility Plan Expected Future Plant Work 0 0 4,000,000 0 4,000,000 0 174 High SRF FEQ Overflow to Satellite 0 0 0 0 0 0 0 161 High GOS Highway 63 Sanitary Sewer Replacement (North Seg.) 0 0 0 0 0 0 0 155 High GOS US Hwy 63 (South Segment) - Sanitary Sewer 0 0 0 0 0 0 0 High SRF Lift Station Emergency Generator Program 0 0 100,000 0 100,000 0 141 High SRF Midland Street Street Pump Station (formerly Titus) 0 0 0 0 0 0 0 High SRF NW Interceptor - Hackett St Lift Station Replacement 0 0 0 0 0 0 High SRF Satellite Plant Configuration Work 0 0 0 0 0 0 High 907 SRF Satellite Wet Well Rehabilitation 0 0 0 0 0 0 205 High SRF SCADA Improvements (was Wonderware) 0 0 0 0 0 0 0 High SRF WAS System Upgrade Project 0 0 0 0 0 0 High SRF Sewer Gatewell 0 0 0 0 0 0 93 Med GOS Footing Drain Removal 0 0 500,000 500,000 0 0 0 Med GOS Annual Misc. WWTP Maintenance Repairs 0 0 500,000 500,000 0 0 Med SO Annual Root Control Program 0 0 0 0 0 0 Med SRF Bar Screen Replacement Project 0 0 0 0 0 0 Med SRF Replace Existing Filter Belt Presses 0 0 0 0 0 0 0 16B GOS US Hwy 63 (Jefferson to Newell) - Sanitary Sewer 0 78 748 SRF Northwest Interceptor Sewer 0 0 144 SRF West Side Interceptor Sewer 0 0 173 SRF Lift Station Upgrade or Replacement Annual Prog. 0 0 SO Nutrient Reduction - Facility Plan Study 0 139 9th Street Corridor Relief Sewer 0 0 176 Lift Station Rehabilitation 0 0 137 869 Addition of 3rd Filter Press/Sludge Dewatering Bldg 0 0 24 12U Drip Dispersal Treatment System (MidPort) 0 0 194 WPCF Effluent De -Nitrification 0 0 143 1 IL Infiltration and Inflow Reduction Program 0 0 203 City Cured in Place Pipe Impr - Phase II 0 0 223 Sewer Televising/Cleaning Equipment 0 0 Flood Levee System Sanitary Sewer Gatewell Replacement 0 0 No projects identified? 0 197 Sewer Maintenance Equipment 0 0 154 Slip Lining Phase II 0 0 Total - Waste Management 175,000 0 11M 0 11,600,000 1,500,000 10,600,000 0 0 v2 - 02 12 18 Final 8m Revision All ,deg 621)20f P29t1vingmt (3) 2/19/2018 2:21 PM Page 7 0 0 $2,000,000 $500,000 $800,000 City of Waterloo Capital Improvements Program FY 2019 — FY 2023 PROGRAM DEPARTMENT PROJECT TITLE Home and Community Leisure Services Cedar River Whitewater and Habitat Improvement Project ESTIMATE $6,000,000 FUND** FY 2019 Recommended and Scheduled for 5 year period GO BHGA SA 0 0 0 FY 2020 FY 2021 0 0 0 $500,000 $2,000,000 $200,000 0 *PROJECT PRIORITY RANK* Please Circle One: HIGH- MEDIUM -LOW NUMERICAL RANK: * Estimate — Total project cost, including cost beyond the 5 -year period. ** Fund options include: AS — Special Assessment BG — Comm. Dev. Block Grant CH — Cash on Hand FA — Federal Assistance FB — Federal Bridge Funds GO — General Obligation Bonds GS — G.O. Sewer Bonds HM — Hotel/Motel Tax PI — Park Improvement Fund RB — Revenue Bonds SA — State Assistance SR — Sewer Revenue Bonds ST — Special Option Tax TI — Tax Increment Financing UN — Unmet Need DESCRIPTION: FY 2022 FY 2023 5 YEAR TOTAL BEYOND 2023 0 0 0 0 0 0 0 0 0 0 This project is to construct a whitewater park in the Cedar River in downtown Waterloo for kayaking, tubing, fishing, and riverfront recreation. Planning and Engineering has been funded by WDC. Design and permitting has been funded by WDC. Grants are being sought for the majority of the cost. JUSTIFICATION/PRIORITY RANK EXPLANATION: RELATIONSHIP TO PLAN: This is consistent with the City of Waterloo goal to enhance the quality of place opportunities for the citizens of our community IMPACT: Section: Park and Recreation Page Page 62 of 291 Project ID: CITY OF WATERLOO Council Communication Property Exchange Agreement with the Waterloo Community School District for the sale and conveyance of city owned property (southern 10 acres of Miriam Park) and acquisition of the former Edison School site. City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Planning & Zoning Clerk Office Reviewer Schroeder, Aric Even, LeAnn ATTACHMENTS: Description o Miriam legal ❑ Property Exchange Agreement SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Action Approved Approved Type Cover Memo Cover Memo Date 2/21/2018 - 11:15 AM 2/21/2018 - 11:51 AM Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution approving the Exchange Agreement with the Waterloo Community School District for the sale and conveyance of City owned property (southerly 10 acres of Miriam Park) and acquisition of the former Edison School site, and authorize the Mayor and City Clerk to execute said documents. Submitted By: Noel Anderson, Community Planning & Development Director Approval The City of Waterloo has been working with the Waterloo Community School District to evaluate and create better land use and efficiencies for various city and school sites. This is another great partnersahip between the two entities to allow the Schools to have more land for athletic field expansion and for reorganization of the Central School site for the Waterloo Career Center expansion; while simultaneously working with the City of Waterloo to redevelop a former school site for excellent infill residential and commercial redevelopment. The Property Exchange Agreement will better utilize both sites, creating a better trained workforce for the community to bring new businesses and jobs here, as well as working to put the former school site onto the tax rolls with new homes, and new commercial infill. Up to $2,000 in legal work Page 63 of 291 Source of Funds: Bonds Policy Issue: Strategy 1.1 to help create job opportunities through workforce training Strategy 1.3 to ensure development -ready sites are created through redevelopment of land along Falls Strategy 3.1 retruning land to tax rolls for revenue generation, eliminating cost of mowing excess land at southern end of Miriam Park through its new use by Schools Strategy 3.8 former Edison site is in CURA to foster new investment Strategy 3.10 new infill sites can work to help reinvestment in larger neighborhood surrounding site Alternative: Not approve Background Information: Legal Descriptions: The City and Schools have worked in recent years for the redevelopment of many sites in the community -- former Irving School, former Baltimore Field, former Williston Field, former Lincoln School, former Orange School, former Street Depatment building, -- to better use the sites for taxable development, new housing opportunities, savings in costs to the taxpayers of the community. This is another project that will help both entities and the community as a whole. Parcel "E" Legal Description: That part of the East one-half (1/2) of the Northwest one-quarter (1/4) of the Northeast one-quarter (1/4) and that part of the West Ten (10) acres of the Northeast one-quarter (1/4) of the Northeast one- quarter (1/4) all in Section 29, Township 89 North, Range 13 West of the 5th Principal Meridian, described as follows: Commencing at the Northeast Corner of said Section 29; thence N89°25'01"W 999.02 feet along the North line of the Northeast one-quarter (1/4) of said section to the East line of the West 10 acres; thence S00°23'42"E 543.39 feet along said East line (also the West line of Central Plaza Addition and the extension thereof) to the point of beginning; thence continuing S00°23'42'E 788.88 feet along said East line to the Southeast corner of said West 10 acres; thence N89°26'48" W 327.15 feet along the South line of said West 10 acres to the Southwest corner of the Northeast Quarter of the Northeast Quarter of said section; thence N00°23'50"W 300.02 feet along the West line of said Northeast Quarter of the Northeast Quarter (also the East line of Tract B, Central Heights Addition); thence N89°27'22"W 362.85 feet along Central Heights Addition to the Northwest corner of Lot 24, Central Heights Addition; thence N00°24'58" W 489.29 feet along the East line of Central Heights Addition; thence S89°25'01 "E 690.20 parallel with the North line of the Northeast Quarter of said Section 29 to the point of beginning, containing Page 64 of 291 10.00 acres. Legal Description of School Property GALLOWAY ADDITION WATERLOO LOTS 21 THRU 42 AND ROCK ISLAND AVE S OF AND ADJ LOTS 31 AND 32 AND ALLEY IN BETWEEN LOTS 21 THRU 42 AND FRL BLK DESIGNATED AS SCHOOL ADJ AND THAT PORTION OF HARWOOD AVE BETWEEN MAGNOLIA PARKWAY AND EVERGREEN AVE ALSO THAT PORTION OF EVERGREEN AVE LYING W OF LOTS 21 TO 31 AND LOTS 342 THRU 348 AND LOTS 409 THRU LOTS 415 AND PART VAC ALLEY COM AT THE SELY COR LOT 348 TH WLY TO SWLY COR LOT 343 TH SWLY 8 FT TO CENTERLINE OF ALLEY TH ELY 40 FT TH SWLY 8 FT TO NWLY COR LOT 413 TH ELY TO NELY COR LOT 409 TH NLY TO PL OF BEG AND FIRST ADDITION TO GALLOWAY LOTS 171 THRU LOTS 181. Page 65 of 291 ,W Z' Y ^ / W O 0 gr O M N • • N \.!, H~0 0.0 O OC N(6N(60O LU Oh 0000 O +. 0:-4 O 00 ro W O a) (..1 n. TS I CO .O CS 4.1 N 0 0 7 H 6O\ •0Ma) O N N o : omm 0�fA1 U) • ••(6JO OD E W N ~ 0¢00 a) U0 a)(6Z ri O a) 6)HI Q •.i CI CC LL CO CO LL asn s,JapJooaa /4uno3 Jo) pan)asaa O OO O M ca E ) up ca T w-w7Z 0 rnN 3 U Z00 ai _ N N cM- (6 (v Ca 6 O) (n o_ CO 0 U H O Nd rno O -o O N 0 0 CO o 00 (n M E Q" t (� (a) Y 60) L = (O (6 'a - t 0_ 3 •� a) W m .n (+ W~ Sig O 0 N •D W CCS � a)°)w w CO cz2> UMU a) 0- a) O •• T .. a) .J • >). C o tY x .�m a) >, a) N>E O_ C 0a)U dCO ed by the City of Waterloo. 0 (6 0 (L6 E U (C6 0 al Description: Parcel "E" Le O N u) 0) CCS m w c C -= 0 0 •C w Z �W c C o ro O= N O- U C O p Z V O) U N 0 C O ,C Q N N M N N 0 N -c W N O N W 0 +L-. 0) (6• O- (c- w "O O -co 6) 0 C c O ,0 h •� C� • x- 0 to Z 73 a) co N N c N- t cE 0 w V 0 Z C M j 6) O 0 00 U oo_9.) (_ '0 ca) 0 U = C O Q. N '6) O) 0 r '6' O= -t O) 0m - 0 ro c c cr) a) 00 L N -0 (B L-• U� (6 LLO..-. N oL Q N a) 0W a)0Z- (n0o) O� N•_ z a) O. --N (N6 O M 0 U O O C at 0 0 6 N 0 C 0 2_ U t C0 rn 01 •:_•__�-z 0 II.' m CO 6) 0c c O U a(6 - .'c-. O 0 NLQ (6 N c O O +' a 0 cC)°mm a)00 NI- O r m Cf v O 0 ro 0 Z t w N Z o co .-.,-60.cZocoo) 17') ai ca _2 0 O 'ONN a a) 6 0 N " N O O N (rW) 0 O 6) O) O a) C •a• O) N 0 .O 0 E 0? Z o r_.O c.0 c 0 0 .e..1_ a) N.co 0 o 0 c N E0 w 0 U O X 0 N- r u7 w s (�6 -o (/)/) C a) a) 3 a) ON) N a) Z0 6 ro E c 172 ONN(0cOcZt.0 C-=0Wc60�a)O— 0 6)� 0 o w °ZO N 2 N .2 .c 0 0 a) •5 U Q a) a a) c 2 0 .. y- O C N � 3 .0 6) d Gro) a) (6 y t N -O No -0 'D 6) a)Y� 't�a w�o NQ L- C w- (O as (6 in Nom) Z eco c ro 0 ii M� O) O m ro 0w �0. O 0 N> 0•� N W o o U rn o_= o f6 •5_ w C o 0 N (6 o o N M 0 Yoh o) - a) m N c W 0 c � •5 w c. � o 0 a0i - aNi t a) 0 ro� C Z U o U O) o ra 0 o o c o(0 o a) (6 o a°)o 00 E�c O owr•- oYl—_1U) Page 66 of 291 U) N 2 U (6 Q < EM (0 W N o E 0 o u) z u) `r at CA V d' co Q 1-Q!) W W LLN Z Z cTu o v v iU te0) z a. z Total: 10.00 Acres 6) () 0 Z O LO ate) 6) E 0 c 0 co N 0E coa; N cp U cd �2 0 0 a) N M (6 O Z -a 0 0)0 E O U a) 0 O (6 o c NI, c O 0 o•o roar0 U 0 N w 0 T CO ..._al >, (6 ch w 0 O L O -O ..0 Cn 15 -0 ._ cp .fl N Z -' a (6 Ec6 o 3 (n - O N W U ro - O O O N 0 U a) v a) a) �< u .0 N M V L() Set 5/8"0 x 24" Rebar w / Orange Cap L.S. #22561 Property Corner Found Set Section Corner Section Corner Found Dimension of Survey O •0® o O (100.00') Dimension of Record 0 U o. E0 00= `o 2 E u T m- c -o a N N `o N 3 v ., Y o m cn o m C a n m T m m E N d o L£ as Matthew A. Kofta mo 0 11 iN C 3� 0 N vte, H a) U 0 3- Part of the NE 1/4 Section 29—T89N—R13W r Ln LL U OLO8L i c.0 \J r NW Corner, NE 1/4 Section Section 29-T89N-R13W Fnd PK Nail in ACC Pavement per Doc. #2017-8990 101 100 W W W W w 99 98 97 96 95 94 N89°25'01 "W Sager Avenue 1326.89' D Plat of Survey Parcel "E" Part of the NE 1/4 Section 29-T89N-R13W Waterloo, Iowa NW Corner NE 1/4, NE 1/4 Section 29-T89N-R13W Set MAG Nail - S89°25'01 "E 2653.11' Central Heights 7 6 5 4 8 9 10 11 iF278.23' (278.26) nd 1 /2" 0 Rebar w/Damaged Cap ddition 3 2 89°2'17"E 1 Fnd 1/2"0 Rebar w/Damaged Cap S00°23'50"E Unplatted NW 1/4, NE 1/4 Section 29-T89N-R13W 12 Fnd 1"0 Pinched Pipe (Typical Unless Noted) N00°24'58"W 13 0 93 33.70' 14 a 92 N00°24'58"W 15 59.92' (60.0') 16 • 91 N00°24'58"W as 60.04' (60.0') 17 = N00°24'58"W 20.01' (120.0') UN00°24'58"W 18 59.91' (60.0') 90 89 88 19 S89°25'01 "E 87 N00°24'58"W 120 08' (120.0')21 20 86 85 N00°24'58"W 42.90' (42.89') 22 363.02' N00°24'58"W 26.42' East Line Central Heights Addition 3.09.£Z,,OOS 30.00' S00°23'50"E 119.95' (120.01') N89°25'01 "W 1326.22' (1326.58') Unplatted NE 1/4, NE 1/4 Section 29-T89N-R13W 690.20' Point of Beginning 3„Zt,£Z000s Ut A w Point of Commencement NE Corner, NE 1/4 Section 29-T89N-R13W Fnd 1/2"0 Rebar w/Yellow Cap PLS #8033 per 333 Misc 722 N89°25'01 "W 999.02' S00°23'42"E 104.83' (105') 8 Fnd 1/2"0 Rebar w/Yellow Cap #2697 7 N N 0 CO A w 3,Z17,EZo00S 6 U 0. c 1 2 3 5 Central Plaza Addition • Fnd 1/2"0 Rebar Parcel "E" 10.00 Acres co o to CO N O w 0 0 N89°27'22"W m 147.94' (148.04') - N89°27'22"W 362.85' (363.07') • 23 84 Q Onawa 83 t Drive 0) 82 24 N O N - W z r 81 80 25 N89°26'481W SW Corner NW 1/4, NE 1/4 Section 29-T89N-R13W Fnd 1/2"0 Rebar per Doc. #2017-8991 1325.63' z O O SW Corner, NE 1/4 Section Section 29-T89N-R13W Fnd MAG Nail in ACC Pavement per Doc. #2003-6765 N89°30'37'W 1325.14' O 0) E 26 -113 Q 27 cn 28 cb 29 U 30 327.18' V 00 COcoco /West Line NE 1/4, NE 1/4 Section 29-T89N-R13W & East Line "Tract B" Central Heights Addition z co O 0 0 co O W CTT CO N89°26'48'W w/Yellow Cap #2697 S00°23'42"E 113.78' fEast Line, West 10 Acres NE 1/4, NE 1/4 Section 29-T89N-R13W Unplatted NE 1/4, NE 1/4 Section 29-T89N-R13W m 0 100 NORTH 200 400 31 CF) W 2 0 0 SW Corner SE 1/4, NE 1/4 is Section 29-T89N-R13W `))- Set MAG Nail z 0 O N w 01 CO 327.15' SW Corner NE 1/4, NE 1/4 Section 29-T89N-R13W Set Witness Corners 15' North and 10' East of Corner due to Culvert co Northeast Corner Lot 42 o Central Heights Addition N W w 0 m N89°26'48"W Fnd 1"0 Pinched Pipe 998.94 (Typical Unless Noted) N89°30'37"W 2651.08' (2651.1') SE Corner NE 1/4, NE 1/4 Section 29-T89N-R13W Set MAG Nail N89°30'37"W 1325.94' a 6£,£Z000s W W O 07 v SE Corner, NE 1/4 Section 29-T89N-R13W Fnd 3-1/4"0 Aluminum Disk in PCC Pavement per Doc. #2003-6766 Page 2 of 2 VJ Engineering 1501 Technology Parkway Cedar Falls, Iowa - 319-266-5829 Parcel „E„ Part of the NE 1/4 Section 29-T89N-R13W scale 1"=200' drawn by MAK ac aie 11/30/201 PROPERTY EXCHANGE AGREEMENT This Property Exchange Agreement (the "Agreement") is made and entered into as of , by and between Waterloo Community School District (the "District") and the City of Waterloo, Iowa, (the "City"). RECITALS A. City is the owner of certain real property known as Miriam's Park, consisting of assessor parcel no. 8913-29-226-001 and 8913-29-207-026 (the "Park"). The parties desire that a 10 -acre portion of the Park be conveyed to District, as set forth on Exhibit "A" attached hereto (the "Park Property"). B. District is the owner of certain real property consisting of assessor parcel no. 8913-22-312-002 and known as the site of the former Edison School. Said property is legally described on Exhibit "B" attached hereto (the "School Property"). The parties desire that the School Property be conveyed to City. C. Each party desires to exchange its respective property with other parties hereto on the terms set forth in this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises exchanged herein between the parties and for other consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Property Exchange. Subject to the conditions set forth in this Agreement, on a date to be mutually determined by the parties hereafter (the "Closing Date"), City will convey the Park Property to District and District will convey the School Property to City. The parties judge the Park Property and the School Property to be of generally equivalent value. The property exchange shall be made in consideration of the benefits expected to accrue to the welfare of the community by each party being able to make more productive use of the property that it receives as compared to the uses now being made of those properties. No cash consideration will be paid by either party in connection with the exchange transaction. 2. Conditions to Conveyance. On the Closing Date, City shall deliver to District a properly executed special warranty deed for the Park Property, and District will deliver to City a properly executed special warranty deed for the School Property. Each property will be free and clear of all liens, claims, and encumbrances except: (a) easements, conditions, and restrictions of record; (b) general utility and right-of-way easements serving the property; and (c) restrictions imposed by local zoning ordinances and other applicable law. Each party will deliver to the other party an abstract of title for its respective property, updated to within thirty (30) days of the Closing Date. The abstract shall show marketable title in the owner in conformity with this Agreement, Iowa law, and title standards of the Iowa State Bar Association. Each grantor shall make every reasonable effort to promptly perfect title. The abstract shall become the property of Page 68 of 291 the grantee at the closing. Each party shall pay the costs of any additional abstracting and title work due to any act or omission by it or its predecessors in title. 3. Condition of Properties. Except as set forth in this Agreement, each party shall convey its respective property to the other in "AS -IS" condition. Each conveying party shall provide to the grantee at closing a properly executed groundwater hazard statement. Within 30 days after the date of this Agreement, any party may obtain, at its sole cost and expense, a report from a qualified engineer or other person qualified to analyze the existence or nature of any hazardous materials, substances, conditions or wastes located on the property to be conveyed to it by another party. The owner shall cooperate in providing reasonable access to the other party's inspectors and engineers. Each party agrees that any other party receiving conveyance of real property under this Agreement is not assuming responsibility or liability for the cleanup of any environmental conditions existing on the conveying party's property before the respective closing date. If before conveyance any substances defined as "hazardous" under applicable environmental laws are spilled, discharged or released on a property subject to this Agreement, the property owner shall promptly notify the intended grantee of such spill, discharge or release event and at its own cost and expense shall take all actions necessary to contain, remediate or otherwise clean up the substance(s) spilled, discharged or released as required by applicable law, rule or regulation. 4. Representations and Warranties of District. District hereby makes the following representations and warranties with respect to the School Property. Said representations and warranties are true and correct in all material respects on the date of the Agreement and shall be true and correct in all material respects as of the Closing Date. A. There are no claims, disputes, actions, or proceedings existing against or affecting the School Property that relate to environmental laws or permits, and there are no hazardous substances on the School Property. District is not subject to and is not currently operating under any compliance or consent order, schedule, decree, or agreement issued or entered into under any environmental law. B. District has provided to City a copy of all environmental reports, surveys or studies in its possession in respect of the School Property. C. Following approval of this Agreement by the District board, District shall have the right, power and authority to enter into this Agreement and to perform the terms of this Agreement, and 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 District. D. Following approval of this Agreement by the District board, the execution, delivery and performance of this Agreement and the closing will not conflict with any provision of law applicable to District nor result in any breach of any provision of or constitute a default under any agreement or instrument to which District is a party and which would affect the marketable title or City's use of the School Property. 2 Page 69 of 291 E. District is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. 5. Representations and Warranties of City. City hereby makes the following representations and warranties with respect to the Park Property. Said representations and warranties are true and correct in all material respects on the date of the Agreement and shall be true and correct in all material respects as of the Closing Date. A. There are no claims, disputes, actions, or proceedings existing against or affecting the Park Property that relate to environmental laws or permits, and there are no hazardous substances on the Park Property. City is not subject to and is not currently operating under any compliance or consent order, schedule, decree, or agreement issued or entered into under any environmental law. B. City has provided to District a copy of all environmental reports, surveys or studies in its possession in respect of the Park Property. C. Following approval of this Agreement by the City Council, City shall have the right, power and authority to enter into this Agreement and to perform the terms of this Agreement, and 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. D. Following the recommendation of approval of this Agreement by the Waterloo Leisure Services Commission and the subsequent approval of this Agreement by the City Council, the execution, delivery and performance of this Agreement and the closing will not conflict with any provision of law applicable to City nor result in any breach of any provision of or constitute a default under the agreement or instrument to which City is a party and which would affect the marketable title or District's use of the Park Property. E. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. 6. Real Estate Taxes and Assessments. There are no property taxes or special assessments payable in respect of the Park Property or the School Property. Each party is an entity exempt from taxation of real property under Iowa law. 7. Transfer Tax. No real estate transfer tax will be payable in connection with any of the property transfers contemplated by this Agreement, pursuant to Iowa Code § 428A.2(6), (21). 8. Risk of Loss and Insurance. Each party will bear the risk of loss or damage to its own property before the closing at which such property will be transferred to another party under this Agreement. Each party shall insure its respective property in the manner and to the extent it deems fit. 3 Page 70 of 291 9. Indemnity. To the extent permitted by applicable law, each party hereby agrees to indemnify and hold harmless any other part from and against and any all claims, demands, causes of action, liabilities, losses, damages, costs and expenses, including but not limited to reasonable attorney's fees, arising from or in connection with the indemnifying parry's breach of any representation or warranty made by it in Section 4 or 5, as applicable. 10. Survival of Terms. In order to accomplish the objectives intended by the parties pursuant to this Agreement, the representations, warranties, promises, covenants, and terms hereof shall not merge into the deeds to be delivered at each Closing, but shall survive each Closing. 11. Default. If any party shall default in any of its respective obligations under this Agreement, then the non -defaulting party may delivery written notice to the defaulting party that specifies the nature of the default. If the defaulting party does not cure the default within thirty (30) days, or within such other period to which the parties may mutually agree, then the non - defaulting party shall be entitled to exercise any right or remedy available under this Agreement or applicable law, including but not limited to specific performance, and the prevailing party shall also be entitled to obtain judgment for its costs and reasonable attorneys' fees. 12. Specific Performance. In the event either party defaults in performance of its obligations hereunder, the remedy of specific performance, in addition to any other remedies allowed by applicable law, shall be available to each party. The reasonable attorneys' fees and costs incurred by the prevailing party shall be borne by the other party. 13. Cooperation. Each party agrees to cooperate in good faith with the other party in connection with the performance of the other party's obligations hereunder or matters otherwise contemplated hereby. 14. Costs and Expenses. Unless specifically provided to the contrary in this Agreement, each party shall bear all cost and expense of any type or nature whatsoever resulting from or arising in connection with any action that is necessary or expedient for such party to perform its duties as provided in this Agreement, and neither party shall have any claim or right of reimbursement or setoff against the other for any such cost or expense. 15. Relationship of Parties. 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 parties nor to create any liability for one party with respect to the liabilities or obligations of another 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 its duly authorized representative, 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. 4 Page 71 of 291 17. Severability; Reformation. 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 upon and shall inure to the benefit of the parties and their respective successors and assigns. 20. Counterparts. This Agreement may be executed in multiple 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 hereto, constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. IN WITNESS WHEREOF, the parties have executed this Property Exchange Agreement by their duly authorized representatives as of the date first written above. WATERLOO COMMUNITY CITY OF WATERLOO, IOWA SCHOOL DISTRICT By: By: Shanlee McNally, Board President Quentin M. Hart, Mayor Attest: 5 Kelley Felchle, City Clerk Page 72 of 291 EXHIBIT "A" Legal Description of Park Property [insert description from survey] Page 73 of 291 EXHIBIT "B" Legal Description of School Property GALLOWAY ADDITION WATERLOO LOTS 21 THRU 42 AND ROCK ISLAND AVE S OF AND ADJ LOTS 31 AND 32 AND ALLEY IN BETWEEN LOTS 21 THRU 42 AND FRL BLK DESIGNATED AS SCHOOL ADJ AND THAT PORTION OF HARWOOD AVE BETWEEN MAGNOLIA PARKWAY AND EVERGREEN AVE ALSO THAT PORTION OF EVERGREEN AVE LYING W OF LOTS 21 TO 31 AND LOTS 342 THRU 348 AND LOTS 409 THRU LOTS 415 AND PART VAC ALLEY COM AT THE SELY COR LOT 348 TH WLY TO SWLY COR LOT 343 TH SWLY 8 FT TO CENTERLINE OF ALLEY TH ELY 40 FT TH SWLY 8 FT TO NWLY COR LOT 413 TH ELY TO NELY COR LOT 409 TH NLY TO PL OF BEG AND FIRST ADDITION TO GALLOWAY LOTS 171 THRU LOTS 181. Page 74 of 291 CITY OF WATERLOO Council Communication Exchange Agreement and Assignment of Real Estate Contract with L & H Farms, Ltd. for the acquisition of property in Black Hawk County for exchange of property in the San Marnan TIF District in the amount of $364,117 for 9.54 acres, and up to $10,000 in closing costs. City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Planning & Zoning Clerk Office ATTACHMENTS: Description o Exchange Agreement o Assignment o Memo LI Offer to Buy SUBJECT: Submitted by: Recommended Action: Reviewer Schroeder, Aric Even, LeAnn Action Approved Approved Type Cover Memo Cover Memo C over Memo C over Memo Date 2/21/2018 - 11:13 AM 2/21/2018 - 11:50 AM Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING - No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution approving the Exchange Agreement and Assignment of Real Estate Contract with L & H Farms, Ltd. for the acquisition of 9.54 acres of land in Black Hawk County for the sum of $364,117, and up to $10,000 in closing costs, in exchange for property in the San Marnan TIF District, and authorize the Mayor and City Clerk to execute said documents. Submitted By: Noel Anderson, Community Planning & Development Director Approval This would be the eighth acquisition of land under the master agreement for the long-term (11 years) purchase of land in the San Marnan area (plus additional amendment area and years to acquire). The City would be acquiring another 9.54 acres of land in this area, southeast of the Highway 20 and Ansborough Avenue interchange for future development. The City price of land being acquired is approximately $38,167 per acre for the development land in the City limits. It should be noted other farmland outside of the city limits has been selling for as high as $14,500 per acre, whereas the basis for the exchange agreement (3.47 ratio) and amount specified above is $11,000 per acre. This acquisition is paid out of the TIF District revenue itself, not out of Page 75 of 291 Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Alternative: Background Information: Legal Descriptions: general city funds. The TIF District and its funds are designed and required to be spent within the TIF District itself for improvements, this will be a large step in the continued planning, development, and marketing of this area. The City will earn rent money after acquisition, beginning at $190 per acre. The acreages are figured as such: 1) They are buying 33.1 acres in Black Hawk County at $415,405 ($12,520 per acre) 2) Based on the CSR ratings of farm land, that puts multiplier at 3.47, but lowered to $11,000 per appraisal. 3) The land cost ($11,000) times multiplier (3.47) equals $38,170. 5) The total land cost ($364,117) divided by land value ($38,170) determines the City land acquired at 9.54 acres. $364,117, plus up to $10,000 in closing costs TIF cash Economic Development - Goals 1, 3, and 4 in the City of Waterloo Strategic Plan. NA The City of Waterloo has been working for a number of years on the development of a South Waterloo Business Park, having recently achieved State of Iowa certified Site status. The continued development of this area of the City will work to provide for a major business and light industrial park setting along the Highway 20 corridor. Based on feedback from major companies, business location consultants, and the Waterloo Industrial Development Association, this growth along the Highway 20 corridor is key to drawing large companies, projects, and jobs to the City of Waterloo. This latest acquisition will now have the City owning approximately 106.19 acres, with an approximate 85.15 acres to be acquired under the agreement (from original agreement and amendment to agreement). The City continues to show this area for large development prospects. This current acquisition will further allow for areas of land needed for infrastructure improvements for full service of the area to be acquired immediately. The Waterloo City Council has previously zoned land in this area and expanded the San Marnan TIF District to include this land, down to the recently completed Shaulis Road extension, for business development of the area. The approval of these agreements would work as the next steps in this long-term process of development of this entire Highway 20 corridor area. See attached Page 76 of 291 EXCHANGE AGREEMENT THIS EXCHANGE AGREEMENT is entered into this day of , by and between the City of Waterloo, Iowa, a municipal corporation ("City"), and L & H Farms, Ltd., an Iowa general partnership ("LHF"). WHEREAS, City has offered to purchase approximately 33.1 acres more or less of Black Hawk County agricultural land described on the attached Exhibit "A" (hereinafter "Farm Land") for the sum of $415,405.00 on or before March 1, 2018, if LHF will agree to accept a conveyance of the Farm Land in exchange for 9.54 acres of development land located at the intersection of U.S. Highway 20 and Ansborough Avenue; and WHEREAS, LHF is the owner of 9.54 acres of real property located at the southeast corner of the intersection of U.S. Highway 20 and Ansborough Avenue described on the attached Exhibit "B" and depicted on the aerial photograph on attached Exhibit "C" (hereinafter "Development Land"); and WHEREAS, LHF is willing to convey the Development Land to City in exchange for the Farm Land so as to qualify the transaction for the non -recognition of gain under Internal Revenue Code Sec. 1031 (such exchange being hereafter referred to as the "Exchange"). NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: Section 1. Construction and Interpretation. This Agreement shall be carried out, governed by, and construed in accordance with the laws of Iowa and, to the extent necessary or appropriate, to obtain like -kind exchange treatment under Internal Revenue Code §1031. The parties agree to execute any additional documents required to allow this transaction to so qualify. LHF agrees to bear any expenses associated with document preparation necessary to qualify the Exchange for like -kind exchange treatment. Section 2. Contingencies. 2.1 City's obligations herein are subject to and conditioned upon the following: A. The City Council for the City of Waterloo, Iowa, adopting a resolution authorizing City to take assignment of the contract to purchase the Farm Land pursuant to the agreed-upon terms and conditions of the assignment set forth in Section 3 below, and further authorizing City to purchase the Farm Land for the sum of $415,405.00 pursuant to the terms and conditions of said contract; 1 Page 77 of 291 B. The City Council for the City of Waterloo adopting a resolution authorizing City to convey the Farm Land to LHF in exchange for the Development Land by directing the sellers of the Farm Land to convey it directly to LHF in accordance with the terms of that certain Option Exchange Agreement between City and LHF dated March 8, 2010, as amended on March 30, 2015; C. City completing its purchase of the Farm Land prior to closing on this exchange with LHF. 2.2 LHF's obligations herein shall be subject to and conditioned upon City completing its purchase of the Farm Land. Section 3. Terms of Assignment. City will be taking assignment of an existing contract to purchase the Farm Land. A copy of said contract, as amended, is attached to this Agreement as Exhibit "D." A copy of the Assignment is attached as Exhibit "E." Section 4. Conveyance of Property. 4.1 City agrees to require the current owners of the Farm Land to convey said real property directly to LHF by warranty deed as consideration for LHF's conveyance of the Development Land to City by warranty deed; 4.2 City agrees to accept the conveyance of the Development Land in accordance with the terms and conditions of this Exchange Agreement. 4.3 In recognition of LHF's role in identifying and pre -approving the Farm Land for acquisition by City for purposes of this Agreement, LHF agrees to accept the conveyance of the Farm Land "as is," subject to all conditions, easements, restrictions and other characteristics, and hereby acknowledges that City has not made and will not make any representation or warranty with respect to the Farm Land, whether as to merchantability of said land, its fitness for any particular purpose, or otherwise. 4.4 The parties agree that the Farm Land shall be deemed to have a value of $414,405.00 for purposes of this transaction, and the Development Land shall be deemed to have a value of $364,100.00 for purposes of this transaction. LHF will loan City the sum of $51,305.00 to acquire the Farm Land, and City will pay the balance of the purchase price in cash. As consideration for the conveyance of the Farm Land to LHF in this exchange, LHF will convey the Development Land to City and forgive the loan in the amount of $51,305.00. 4.5 No cash consideration will be exchanged between the parties. Section 5. Form of Conveyance 2 Page 78 of 291 5.1 City shall cause the current owner of the Farm Land to convey said real property directly to LHF by Warranty Deed. LHF shall convey the Development Land to City by Warranty Deed. Title shall be merchantable title in accordance with the Iowa Title Standards. 5.2 All liens or clouds on title shall be removed prior the Exchange. 5.3 If title cannot be made merchantable within a reasonable period of time, this Exchange Agreement shall become null and void. Section 6. Closing. The closing on the Exchange contemplated herein shall occur contemporaneously with the closing on City's purchase of the Farm Land. It is expected that the closing will occur on or before March 1, 2018. Section 7. Property Taxes. 7.1 LHF acknowledges that City will receive a credit against the $ purchase price for the Farm Land in an amount equal to the annual real estate taxes on the Farm Land prorated through the closing date, and that as a result of such credit, the seller of the Farm Land will expect City and its successors to pay the installments of property taxes due on and after March 31, 2018. LHF agrees to assume responsibility for making the general property tax payments for the Farm Land due March 31, 2018, and all subsequent installments. 7.2 LHF will pay the property taxes on the Development Land that are due March 31, 2019 and all prior installments. City shall be responsible for real estate taxes attributable to the Development Land due September 30, 2019, and all subsequent installments of general real estate taxes attributable to the Development Land, if any. Section 8. Survey. If the parties determine that a survey of the Development Land, or any part thereof, is required, then City shall reimburse LHF for the cost of procuring a plat of survey for the Development Land. The plat of survey must be completed and filed of record in the office of the Black Hawk County Recorder prior to the completion of the Exchange contemplated herein. Section 9. Abstracting. 9.1 The current owner of the Farm Land will provide City with an updated abstract of title or title report for the Farm Land prior to City having to complete its purchase of the Farm Land. Upon receipt of the abstract of title or title report, City shall deliver it to legal counsel for LHF. Legal counsel for LHF shall examine the abstract or title report and 3 Page 79 of 291 confirm that the current owner of the Farm Land possesses marketable title to the real estate as required by this Exchange Agreement. 9.2 LHF will provide City with an updated title report for the parcel of real estate that includes the Development Land. City acknowledges that the title report will include other real estate. City shall bear the expense of paying the abstract company to prepare a separate abstract of title for the Development Land. City may defer the preparation of this abstract of title until such time as it is prepared to sell all or a portion of the Development Land. Section 10. Other Closing Costs. Each of the parties agrees to pay any closing costs not specifically addressed herein in the manner customarily paid by buyers and sellers as part of real estate transactions in the State of Iowa. Section 11. Option to Rent. City agrees that as long as City remains the titleholder to all or a portion of the Development Land, Lanehaven Farms, Inc., shall be entitled to rent any and all undeveloped portions of the Development Land on a year-to-year basis on the condition that Lanehaven Farms, Inc., enter into a written lease agreement with City requiring, among other things, that Lanehaven Farms, Inc., provide the same indemnification customarily required of tenants in a cash basis farm lease and that Lanehaven Farms, Inc., procure customary liability insurance identifying City as an additional insured. Annual rent for the first faun -(4) -three (3) years (through the 2021 20222020- 2021 crop year) shall be $190.00 per acre. Thereafter, annual rent shall be mutually agreed upon by the parties or in the absence of such agreement, it shall be set at the then prevailing fair rental value as determined by a mutually agreeable farm management company such as Hertz Farm Management. Rent shall be payable in December of each calendar year. Section 12. Notices. All notices, requests, demands, directions and other communications required or permitted to be given pursuant to this Agreement shall be valid if in writing and if delivered personally, or sent by certified or registered mail, return receipt requested, postage prepaid and addressed as follows: To City: To LHF: The City of Waterloo, a municipal corporation Attention: Quentin M. Hart, Mayor Attention: Kelley Felchle, City Clerk 315 Mulberry Street Waterloo, Iowa 50703 L & H Farms, Ltd., an Iowa general partnership Lanehaven Farms, Inc., Partner Attention: Curtis Hollis, President 7502 Hammond Avenue Waterloo, Iowa 50701 4 Page 80 of 291 Section 13. Amendments. This Agreement may not be modified except in a written instrument signed by the parties. Section 14. Enforceability. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors, executors, personal representatives and assigns. No party to this Agreement may assign their/its rights or interests hereunder without the prior written consent of each of the other parties. Section 15. Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same document. Section 16. Limitation of Rights. With the exception of the rights herein expressly conferred, nothing expressed in this Agreement is intended or shall be construed to give to any person or entity, other than the parties hereto, any legal or equitable right, remedy or claim under or in respect to this Agreement or any covenants, agreements, conditions and provisions herein contained, this Agreement and all of the covenants, agreements, conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of the parties hereto. Section 17. Severability. If any provision of this Agreement shall be held or deemed to be or shall, in fact, be inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions or in all jurisdictions, or in all cases because it conflicts with any other provision or provisions hereof or any constitution or statute or rule of public policy, or for any other reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions herein contained invalid, inoperative, or unenforceable to any extent whatever. Section 18. Intent. It is the intent of the parties that this Exchange Agreement shall permit each party to complete a like -kind exchange pursuant to Internal Revenue Code Sec. 1031 and it is intended to comply with the requirements of the regulations thereunder, including, but not limited to, Reg. 1.1030(k)-1. To the extent that any provisions herein conflict with the requirements of the safe harbor provisions contained therein, the requirements and the conditions of the statute and the regulations shall control. 5 Page 81 of 291 IN WITNESS WHEREOF, City and LHF have each caused this Agreement to be executed, sealed and delivered as of the day and year first above written. THE CITY OF WATERLOO, IOWA, A MUNICIPAL CORPORATION By: Quentin M. Hart, Mayor By: Kelley Felchle, City Clerk L & H FARMS, LTD. By: LANEHAVEN FARMS, INC., Partner By: Curtis G. Hollis, President STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) This instrument was acknowledged before me on the day of , by Quentin M. Hart as Mayor and Kelley Felchle as City Clerk of the City of Waterloo, Iowa, an Iowa municipal corporation. Notary Public in and for Black Hawk County, Iowa 6 Page 82 of 291 STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) This instrument was acknowledged before me on the day of , by Curtis G. Hollis as President of Lanehaven Farms, Inc., an Iowa corporation, General Partner of L & H Farms, Ltd., an Iowa general partnership. Notary Public in and for Black Hawk County, Iowa 7 Page 83 of 291 EXHIBIT "A" The North 40 acres of the East 120 acres except the North 400 feet of the East 660 feet of the Southeast Quarter, all in Section 20, Township 88 North, Range 13 West of the 5th P.M., in Black Hawk County, Iowa (containing approximately 33.1 tillable acres). 8 Page 84 of 291 EXHIBIT "B" Development Land Parcel The South 184 feet of the North 1122.85 feet of the North Half of the Southwest Quarter (N 1/2 SW 1/4) in Section No. 9, Township No. 88 North, Range No. 13 West of the Fifth Principal Meridian, Black Hawk County, Iowa, EXCEPT that part thereof conveyed to the City of Waterloo in a deed filed March 14, 2012 as Doc. No. 2012-16922 AND EXCEPT that part thereof described in a deed dated April 29, 1996 and filed May 1, 1996, at Book 567 Land Deeds at Page 633 AND EXCEPT that part thereof described in a deed dated April 4, 1997 and filed April 4, 1997 at Book 569 Land Deeds at Page 042, all filed in the Office of the Black Hawk County Recorder. Subject to easements, restrictions, covenants, ordinances and limited access provisions of record and not of record. 9 Page 85 of 291 EXHIBIT "C" 2018 L&H - Anderson Exchange n Exchange 33.1 tillable acres for 9.54 acres development land legend 2018 bUZZ4a exchange • 9.54 Acres 2018 184' x 2257' 1 .aalairro &OD 133 601 0 Page 86 of 291 EXHIBIT "D" Anderson Contract 11 Page 87 of 291 EXHIBIT "E" ASSIGNMENT OF REAL ESTATE CONTRACT 12 Page 88 of 291 ASSIGNMENT OF REAL ESTATE CONTRACT THIS ASSIGNMENT is made and entered into this day of , by and between Hollis Farms, Inc., an Iowa corporation, and the City of Waterloo, Iowa, a municipal corporation ("City"). 1. Assignment. Hollis Farms, Inc. hereby assigns all of its right, title and interest in the Offer to Buy Real Estate and Acceptance (Non -Residential) between Hope Martin Andeerson, as Seller, and Hollis Farms, Inc., an Iowa corporation, as Buyer, dated June 22, 2017 (hereinafter "Contract") for the sale of the following described real estate: The North 40 acres of the East 120 acres except the North 400 feet of the East 660 feet of the Southeast Quarter, all in Section 20, Township 88 North, Range 13 West of the 5th P.M., in Black Hawk County, Iowa (containing approximately 33.1 tillable acres). 2. Acceptance of Assignment. City hereby accepts assignment of the Contract. HOLLIS FARMS, INC. THE CITY OF WATERLOO, IOWA, A MUNICIPAL CORPORATION By: Blake G. Hollis, President By: Quentin M. Hart, Mayor above. By: Kelley Felchle, City Clerk The undersigned, Hope Martin Anderson, hereby consents to the Assignment set forth Hope Martin Anderson Page 89 of 291 MEMORANDUM OF AGREEMENT REGARDING PRORATING OF REAL ESTATE TAXES This Agreement is entered into as of , 2017, by and between L & H Farms, Ltd. ("L&H") and the City of Waterloo, Iowa ("City"). RECITALS A. L&H and City are parties to a certain Exchange Agreement by which L&H will convey to City, as part of an exchange of like -kind real estate, certain real property described as: The South 184 feet of the North 1122.85 feet of the North Half of the Southwest Quarter (N 1/2 SW 1/4) in Section No. 9, Township No. 88 North, Range No. 13 West of the Fifth Principal Meridian, Black Hawk County, Iowa, EXCEPT that part thereof conveyed to the City of Waterloo in a deed filed March 14, 2012 as Doc. No. 2012-16922 AND EXCEPT that part thereof described in a deed dated April 29, 1996 and filed May 1, 1996, at Book 567 Land Deeds at Page 633 AND EXCEPT that part thereof described in a deed dated April 4, 1997 and filed April 4, 1997 at Book 569 Land Deeds at Page 042, all filed in the Office of the Black Hawk County Recorder. Subject to easements, restrictions, covenants, ordinances and limited access provisions of record and not of record. (the "Real Estate"). B. The purpose of this Agreement is to confirm the parties' agreement regarding the manner in which real estate taxes will be prorated. The parties acknowledge that the Exchange Agreement requires that taxes for the Real Estate are to be prorated to the closing date for the sale and purchase of the Real Estate, likely March 1, 2018. 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 that L&H will pay the full tax bill for the Real Estate that is due on or before September 30, 2018. Concurrently with said payment, L&H will also deliver a check in the amount of $ , payable to the Black Hawk County Treasurer, to the office of City's legal counsel, namely, Clark Butler Walsh & Hamann, 315 E. 5th Street, Waterloo, Iowa, 50703, Attn: Chris Wendland. City's legal counsel will be responsible for remittance of said check to the treasurer's office as a prepayment of L&H's prorated share of the March 2019 tax installment. The parties acknowledge that the sum of $ is a good -faith estimate based on currently available information. The parties also acknowledge that, when tax bills are issued in August 2019, the Real Estate will not be taxed as a separate parcel from the larger parcels of which it is a portion, but that the treasurer's office has indicated that taxes otherwise attributable to the Real Estate will not be included in said tax bills for the larger parcels. The August 2019 tax bills for the larger parcels will be the full and sole responsibility of L&H. The parties agree to cooperate Page 90 of 291 reasonably and in good faith, and to take such further steps as may be reasonably necessary or advisable, to carry out the purpose and intent of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives as of the date first set forth above. L & H FARMS, LTD. CITY OF WATERLOO, IOWA By: By: Curtis G. Hollis, President Quentin M. Hart, Mayor Attest: 2 Kelley Felchle, City Clerk Page 91 of 291 OFFER TO BUY REAL ESTATE AND ACCEPTANCE (NONRESIDENTIAL) TO: Hope Martin Anderson ("SELLERS") Hollis Farms, Inc., or its assigns ("BUYERS"), the undersigned hereby offer to buy and the undersigned SELLERS by their acceptance agree to sell the real property situated in Black Hawk County, Iowa, legally described as: The North 40 acres of the East 120 acres except the North 400 feet of the East 660 feet of the Southeast Quarter, all in Section 20, Township 88 North, Rang 13 West of the 5th P.M., in Black Hawk County, Iowa (containing approximately 33.1 tillable acres) together with any easements and appurtenant servient estates, but subject to any reasonable easements of record for public utilities or roads, any zoning restrictions customary restrictive covenants and mineral reservations of record, if any, herein referred to as the "Property," upon 'the following terms and conditions: 1. PURCHASE PRICE. The Purchase Price shall be $415,405 ($12,550 per tillable acre for 33.1 acres), with $20,000 to be held by Beecher, Field, Walker, Morris, Hoffman & Johnson, P.C. as Earnest Money, and the remainder to be paid at Closing. 2. REAL ESTATE TAXES. SELLERS shall pay the installments of real estate taxes prorated to the date of Closing and any unpaid real estate taxes payable in prior years. BUYERS shall pay all subsequent real estate taxes. 3. SPECIAL ASSESSMENTS. SELLERS shall pay in full at time of Closing all installments of special assessments which are a lien on the Property as of the date of acceptance of this offer. BUYERS shall pay all other special assessments or installments not payable by SELLERS. 4. RISK OF LOSS AND INSURANCE. SELLERS shall bear the risk of loss or damage to the Property prior to Closing or possession, whichever first occurs. SELLERS agree to maintain existing insurance and BUYERS may purchase additional insurance. In the event of substantial damage or destruction prior to Closing, this Agreement shall be null and void; provided, however, BUYERS shall have the option to complete Closing and receive insurance proceeds regardless of the extent of damages. The property shall be deemed substantially damaged or destroyed if it cannot be restored to its present condition on or before Closing. 5. POSSESSION AND CLOSING. If BUYERS timely perform all obligations, possession of the Property shall be delivered to BUYERS at Closing, and any adjustments of rent, insurance, interest and all charges attributable to the SELLERS' possession shall be made as of the date of possession. Closing shall occur on or before March 1, 2018. SELLERS agree to permit BUYERS to inspect the Property within 24 hours prior to closing to assure that the premises are in the condition required by this Agreement. If possession is given on a day other than Closing, the parties shall make a separate agreement with adjustments as of the date of possession. This transaction shall be considered closed upon the delivery of the title transfer documents and receipt of all funds due at Closing from BUYERS under the Agreement. 6. CONDITION OF PROPERTY. The property as of the date of this Agreement will be preserved by the SELLERS in its present condition until possession, ordinary wear and tear excepted. SELLERS make no warranties, expressed or implied, as to the condition of the property. BUYERS acknowledged that they have made a satisfactory inspection of the Property and are purchasing the Property in its existing condition_ 7. ABSTRACT AND TITLE. SELLERS, at their expense, shall promptly obtain an abstract of title to the Property continued through the date of acceptance of this Agreement, and deliver it to BUYERS' attorney for examination. It shall show marketable title in SELLERS in conformity with this Agreement, Iowa law, and title standards of the Iowa State Bar Association. The SELLERS shall snake every reasonable effort to promptly perfect title. If Closing is delayed due to SELLERS' inability to provide marketable title, this Agreement shall continue in force and effect until either party rescinds the Agreement after giving ten days written notice to the other party. The abstract shall become the property of BUYERS when the Purchase Price is paid in full. SELLERS shall pay the costs of any additional abstracting and title work due to any act or omission of SELLERS, including transfers by or the death of SELLERS or their assignees. The abstract shall be obtained from an abstracter qualified by the Guaranty Division of the Iowa Housing Finance Authority. 1 Page 92 of 291 8. SURVEY. If a survey is required under Iowa Code Chapter 354, or city or county ordinances, SELLERS shall pay the costs thereof. BUYERS may, at BUYERS' expense prior to Closing, have the property surveyed and certified by a registered land surveyor. If the survey shows an encroachment on the Property or if any improvements located on the Property encroach on lands of others, the encroachments shall be treated as a title defect. 9. ENVIRONMENTAL MATTERS. SELLERS warrant to the best of their knowledge and belief that there are no abandoned wells, solid waste disposal sites, hazardous wastes or substances, underground storage tanks, private burial sites, or private sewage disposal systems located on the Property, the Property does not contain levels of radon gas, asbestos, or urea - formaldehyde foam insulation which require remediation under current governmental standards, and SELLERS have done nothing to contaminate the Property with hazardous wastes or substances. SELLERS warrant that the property is not subject to any local, state, or federal judicial or administrative action, investigation or order, as the ease may be, regarding wells, solid waste disposal sites, hazardous wastes or substances, or underground storage tanks. SELLERS shall also provide BUYERS with a properly executed GROUNDWATER HAZARD STATEMENT showing no wells, solid waste disposal sites, hazardous wastes and underground storage tanks on the Property. 10. DEED. Upon payment of the Purchase Price, SELLERS shall convey the Property to BUYERS by warranty deed, free and clear of all liens, restrictions, and encumbrances except as provided in this Agreement. General warranties of the title shall extend to the time of delivery of the deed excepting liens and encumbrances suffered or permitted by BUYERS. 11. USE OF PURCHASE PRICE. At time of settlement, funds of the Purchase Price may be used to pay taxes and other liens and to acquire outstanding interests, if any, of others. 12. REMEDIES OF THE PARTIES. If BUYERS or SELLERS fail to timely fulfill the terms of this Agreement, then the other party shall be entitled to utilize any and all remedies or actions at law or in equity which may be available to them (including but not limited to forfeiture, foreclosure, termination, rescission, or specific performance), and the prevailing party shall further be entitled to obtain judgment for costs and attorney fees. 13. NOTICE. Any notice under this Agreement shall be in writing and be deemed served when it is delivered by personal delivery or mailed by certified mail, addressed to the parties at the addresses given below. 14. GENERAL PROVISIONS. In the performance of each part of this Agreement, time shall be of the essence. Failure to promptly assert rights herein shall not, however, be a waiver of such rights or a waiver of any existing or subsequent default. This Agreement shall apply to and bind the successors in interest of the parties. This Agreement shall survive the Closing. This Agreement contai s the entire agreement of the parties and shall not be amended except by a written instrument duly signed by SELLERS and BUYERS. Paragraph headings are for convenience of reference and shall not limit or affect the meaning of this Agreement. Words and phrases herein shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender according to the context. 15. CERTIFICATION. Buyer and Seller each certify that they are not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by an Executive Order or the United States Treasury Department as a terrorist, "Specially Designated National and Blocked Person" or any other banned or blocked person, entity, nation, or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and are not engaged in this transaction, directly or indirectly on behalf of, any such person, group, entity or nation. Each party hereby agrees to defend, indemnify and hold harmless the other party from and against any and all claims, damages, lasses, risks, liabilities, and expenses (including attorney's fees and costs) arising from or related to any breach of the foregoing certification. Seller further certifies that none of Seller is a "foreign person" within the meaning of Section 1445(i)(3) of the Internal Revenue Code of 1986, as amended and the related Treasury Department regulations. 16. ADDITIONAL PROVISION A. BUYERS accept the Property in "As Is" condition. B. Neither party has used the service of a real estate agent or broker in connection with this transaction. No broker fee is due and owing. 2 Page 93 of 291 C. BUYERS acknowledge that SELLERS has entered into an Option Agreement for a substation on real estate excepted from Property, with a right to have an easement for a transmission line on Property. BUYERS will negotiate in good faith regarding said easement, and any payments due for said easement shall be paid to BUYERS. D. BUYERS agree that they will not allow Property to be used as a substation through December 31, 2023. A restriction shall be noted on the warranty deed to this affect. 17. ELECTRONIC TRANSMISSION. Any notice required under this Agreement shall be deemed given when it is received in writing either by band delivery, fax, return receipt requested mail, or electronic mail. A signed copy of this Agreement, counteroffers, and all addendums or amendments to this Agreement shall, taken together, constitute a single binding agreement. 18. ACCEPTANCE. When accepted, this Agreement shall become a binding contract. If not accepted and delivered to BUYERS on or before the — day of June, 2017, this Agreement shall be null and void and all payments made shall be returned immediately to BUYERS. If accepted by SELLERS at a later date and acceptance is satisfied in writing, then this contract shall be valid and binding. Accepted JUNE 22.?Uf7 Dated % nr7 BUYER Hollis Farms, Inc. SELLERS Address: P.O. Box 777 Waterloo, IA 50704-0777 y: Blake . Hollis Its: President 7502 Hammond Ave. Waterloo, IA 50701 Page 94 of 291 CITY OF WATERLOO Council Communication Resolution approving the Iowa Certified Local Government 2017 Annual Report and authorize the Mayor and Planning Staff to execute said document. City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Planning & Zoning Clerk Office Reviewer Schroeder, Aric Even, LeAnn Action Approved Approved ATTACHMENTS: Description Type o CLG Annual Report 2017 Backup Material SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Date 2/21/2018 - 10:49 AM 2/21/2018 - 12:16 PM Resolution approving the Iowa Certified Local Government 2017 Annual Report and authorize the Mayor and Planning Staff to execute said document. Submitted By: Noel Anderson, Community Planning and Development Director Approval As a Certified Local Government the City of Waterloo needs to file a report annualy to the State of Iowa and the United States Department of the Interior. The benefit of being a Certified Local Government: • Access to special funding • Recognized by State and Federal Agencies • Technical Assistance for the State Historic Preservation Office • Information Excahnge This year the Historic Preservation Commission has accomplished: • Set goals and a action plan • Applied for multiple grants. • Recognized 5 groups and individuals for their contributions to historic preservation in the city. • Awarded a Certified Local Government Grant. • Nominated St. Mary's as one of Iowa's Most Endangered Buildings. None N/A Page 95 of 291 Policy Issue: Alternative: Historic Preservation Don't approve, which would cause the City of Waterloo to no longer be designated as a Certified Local Government. Page 96 of 291 Received [For SHPO use only] Minimum no. of meetings? yes no Required training? yes no Fully appointed commission? yes no Has the commission been active? yes no Has the commission accomplished at least one project? yes no Comments: Approved/CLG in good standing yes no More information requested Entered into database / IOWA CERTIFIED LOCAL GOVERNMENT 2017 ANNUAL REPORT (January 2017 -December 2017) NAME OF THE CITY, COUNTY, OR LAND USE DISTRICT: City of Waterloo Section I. Locating Historic Properties Identification, Evaluation, and Registration Activity CLG Standards found in CLG Agreement and National Historic Preservation Act The CLG shall maintain a system for the survey and inventory of historic and prehistoric properties in a manner consistent with and approved by the STATE. The CLG will review National Register nominations on any property that lies in the jurisdiction of the local historic preservation commission. 1. Please provide complete reports and site inventory forms from historic identification/survey, evaluation, and/or registration/nomination projects that your commission completed in 2017. Do not include projects that were funded with a CLG grant or mandated by the Section 106 review and compliance process as we already have these in our files. N/A 2. How many National Register of Historic Places (NRNP) properties in your City, County, or LUD were altered, moved, or demolished in 2017? Please identify the property (historic name and address) and the action 0 CLG Annual Report 2017 1 Page 97 of 291 3. In 2017, how many additional properties did your city place on its list of locally designated historic landmarks and/or historic districts? If you have questions about whether you have a locally designation program or not, please contact Paula Mohr before you complete this section. (As a reminder, before your elected officials approve or change local districts or ordinances, you must send a copy to the State Historic Preservation Office for review and comment.) Please attach a copy of the final designation nomination(s) and ordinance(s). Date the ordinance(s) reviewed and commented by SHPO 0 4. In 2017, what were the actions to revise, amend, change, or de -list a locally designated property? Please attach documentation of the review and appeal process and decisions made by the historic preservation commission, planning and zone commission, city Council, District Court or other governmental agency or official involved with the process. (use additional pages if needed) 0 Section II Managing, Protecting, and Preserving Historic Properties The CLG will enforce all appropriate state and local ordinances for designating and protecting historic properties The CLG shall provide for adequate public participation in the local historic preservation programs 5. Did your city, county, LUD or its historic preservation commission undertake any of the following activities in 2017? Please think broadly about this question and include any activity (small or large) that facilitated historic preservation in your community. This is your opportunity to boast about your accomplishments and get credit for the great work you do! (use additional pages if needed) a. Historic preservation planning. Examples include the development or revision of an preservation plan, development of a work plan for your commission, etc. (use additional pages if needed) On February 2"d, 2017 the Waterloo Historic Preservation Commission held a special goal setting session. From the goals created at the session an action plan was created that is updated on a monthly basis and included in the packet sent out to the commissioners. b. Provided technical assistance on historic preservation issues or projects. Examples include working with individual property owners, business owners, institutions to identify appropriate treatments and find appropriate materials, research advice, etc. Please be specific (use additional pages if needed) CLG Annual Report 2017 2 Page 98 of 291 City staff assisted projects by helping, through staff research and time as well as incentives to match, historic renovations of the former Wonderbread Bakery into the new Singlespeed Pub & Brewery. The city further assisted in funding staff/consultants to help with renovations to the KWWL building. c. Sponsored public educational programming in historic preservation. Examples include training sessions offered to the public, walking tours, open houses, lectures, Preservation Month activities, etc. (use additional pages if needed) On October 17th, the Historic Preservation Commission participated in a panel discussion at the Waterloo Library explaining what the commission does, some of the obstacles it faces, and some of the successes that commission has seen recently. After the commissioners gave their presentation there was a question and answer session with the public that was in attendance. Also on May 4th, the commission held its annual awards banquet. At the banquet the following were honored: Ann Olsson Ann Olsson is a former member of Historic Preservation Commission and a longtime advocate of ensuring that the history of Waterloo is preserved. She was a key advocate to help fight and ensure that the Wonderbread Building was preserved after it was closed by the Hostess Bankruptcy in 2012 and it has now been restored by David Morgan. Dave Morgan-Singlespeed David Morgan has taken one of Waterloo's iconic buildings and not only saved it from the wrecking ball but is turning it into a major destination that is destined to bring more life to the area. Not only did the $6 million project use the 1927 blueprints of the building to restore it, they restored the building by historical standards and made it LEED certified. The opening of Single Speed has made news as far away as California and Virginia, giving Waterloo some positive publicity. AHTS Architects AHTS Architects was contracted by JSA development for historic architecture services on the former Walden Blocks. AHTS was presented with Preservation Iowa's 2016 "Preservation at its best" award for small commercial projects. In addition, AHTS headquarters is located on East 4th Avenue in Downtown Waterloo East Commercial Historic District. Laura and Mike Hoy Laura and Mike Hoy have been longtime supporters of the Walnut Neighborhood. In addition to buying and restoring a house on Walnut Street, Laura works with several organizations in the district and was one of the people that pushed for the JSA/City of Waterloo development agreement that will restore 4 homes in the neighborhood. Brad and Holly Cote -Residence Brent Bohlen nominated Brad and Holly Cote for this award. Brad and Holly Cote own the house at 310 Independence that was built in 1904 by George Fowler of the Fowler Co. The Cote's have invested a large amount of time and money to restore the home authentically. Not CLG Annual Report 2017 3 Page 99 of 291 only are they investing in their home but they are also investing in a neighborhood that has been neglected over the years. 6. If the city or county amended its historic preservation ordinance or resolution or passed additional ordinances or resolutions that impact historic properties, please attach copies of the amendments and new ordinances or resolutions. No changes to the ordinance. (As a reminder, before your elected officials approve local districts or ordinances, you must send a copy to the State Historic Preservation Office for comment.) 7. If new or revised design standards and/or guidelines were developed and adopted during 2017, please attach a copy. It was brought to the attention to the commission that the Highland Neighborhood had guidelines developed in 2012 on their website but the commission and staff was using a much older set of guidelines. Staff determined that the 2012 guidelines were never approved by the Waterloo City Council so the commission started looking at those 2012 guidelines and the new Secretary of the Interior Standards and plan to have a new set of guidelines sometime in 2018 and ensure that they are sent to the Waterloo City Council who must approved them. 8. Are there any particular issues, challenges, and/or successes your preservation commission has encountered or accomplished this year? (use additional pages if needed) One of the ongoing issues the commission has encountered is the lack of funding. However, the commission was awarded a CLG Grant this year and has requested funing from the city's annual Capital Improvement Program LIP). The commission is seeking out other grants to work on projects throughout the city. Another challenge the commission faces is the lack of an active historical society in the city that the commission can partner with. There is a Cedar Valley Historic Society that has done presentations at the Grout Museum (although none in 2017) but they have not been very active. Another issue the commission has been facing is with Waterloo's currently only residential historic district the Highland Neighborhood. The neighborhood has seen little investment over the last few years and is seeing an increase in the number of homes that are not being kept up, being turned into rentals, and an increase in crime. The commission invited the Highland Neighborhood Association to its regular meeting in September. The commission and the association discussed issues of concern and brain stormed ideas of ways to help the neighborhood. This included a request for funds in the CIP to improve and promote the neighborhood. A National Register nomination survey was instituted by the City of Waterloo in a cooperative agreement with the Walnut Neighborhood, JSA Development, and other interested parties. This includes a development agreement with JSA Development that will see them restore 4 historic properties in the neighborhood. CLG Annual Report 2017 4 Page 100 of 291 In January Mount Moriah Church was named as one of Iowa's Most Endangered buildings. This led to the commission starting its own list of Most Endangered Buildings with the commission announcing its list at its annual awards banquet and it plans to come out with a list annually or at least make additions to the existing lists. The commission also nominated St. Mary's School and Church to Iowa's Most Endangered List for 2018. The commission also worked on developing a relationship with the Community Foundation of Northeast Iowa. The Community Foundation offers opportunities not only for grants but also to be able to network with its partners who could provide assistance to the commission. As noted below the commission now has its own website presence. Currently the site has maps, paperwork, and the most endangered list posted on it. Staff is currently working on digitizing all the reports that have been gathered by the department over the last 35 years and will post those onto the website when the project is completed. The long term goal is to make the website a portal for any information that is needed concerning historic preservation in the city. 9. Does your commission have a website and if so, what is the address? http://www.cityofwaterlooiowa.com/historicpreservation Section 111 Historic Preservation Program Administration The CLG will organize and maintain a historic preservation commission, which must meet at least three (3) times per year. The commission will be composed of community members with a demonstrated positive interest in historic preservation, or closely related fields, to the extent available in the community. The commission will comply with Iowa Code Chapter 21 (open meetings) in its operations. Commission members will participate in state-sponsored or state -approved historic preservation training activities. 10. List dates of meetings held (please note these are meetings actually held with a quorum, not just those that were scheduled). January 17, February 21, March 21, May 16, June 20, July 18, August 15, September 19, October 17, November 21, December 19 11. We recommend that each commission have a budget with a minimum of $750 to pay for training and other commission expenses. In 2017, what was the dollar amount for the historic preservation commission's annual budget? The commission currently does not have a budget. 12. Where are your official CLG files located? CLG Annual Report 2017 5 Page 101 of 291 City of Waterloo Office of Community Planning and Development 715 Mulberry Street Waterloo, Iowa 50703 13. Please update the attached CLG Personnel Information Table (this must be completed). See below. 14. Please attach biographical sketches for commissioners who were newly appointed in 2017 or 2018. Please be sure newly appointed commissioners sign and date their statement. See below. 15. Please complete the 2017 Commission Training Table. See below. PLEASE SIGN and DATE Signature of person who completed this report Date Signature of Mayor or Chairman of the Board of Supervisors Date Please retain a copy for your official CLG file and send a PDF of the signed document to paula.mohr@iowa.gov. OR you can mail a hard copy with original signatures to the address below. The deadline is February 28, 2018. Paula A. Mohr State Historical Society of Iowa 600 East Locust St, Des Moines IA 50319-0290 Paula.mohr@ iowa.gov If you have questions, please contact me at: (515) 281-6826. Thank you for your timely response! CLG Annual Report 2017 6 Page 102 of 291 2017 Historic Preservation Training Table An important requirement of the Certified Local Government program is annual state- sponsored or state -approved training undertaken by at least one member of the historic preservation commission and/or staff liaison. In this table, provide information about the commissioners' involvement in historic preservation training, listing the name of the conference, workshop or meeting (including on-line training opportunities); the sponsoring organization; the location and date when the training occurred. Be sure to provide the names of commissioners, staff, and elected officials who attended. Name of Training Session: 2017 Preserve Iowa Summit Sponsoring organization: SHPO/Davenport Historic Preservation Commission Location: Fort Dodge, Iowa Date: June 2017 Names of commission members, staff and elected officials who attended the Preserve Iowa Summit (please note this must be completed. If no one attended, enter none): Terry Stevens and John Dornoff Name of Training Session: Atlas of ReUrbanism: Buildings and Blocks in American Cities Sponsoring organization: National Trust for Historic Preservation Location: Webinar Date: February 9, 2017 Names of historic preservation commissioners, staff and elected officials who attended: John Dornoff Name of Training Session: Historic Tax Credits Roundtable Sponsoring organization: Community Bank and Trust Location: Waterloo, Iowa Center for the Arts Date: February 16, 2017 Names of historic preservation commissioners, staff and elected officials who attended: Ed Ottesen, Rick Jaacks, and John Dornoff Name of Training Session: Historic Preservation and Cultural and Entertainment District Tax Credit Sponsoring organization: Iowa Economic Development Authority Location: State Historical Building, Des Moines, Iowa Date: February 23`d, 2017 Names of historic preservation commissioners, staff and elected officials who attended: John Dornoff CLG Annual Report 2017 7 Page 103 of 291 Name of Training Session: Using the Historic Tax Credit for Affordable Housing Sponsoring organization: United Stated Department of Housing and Urban Development Location: Webinar Date: May 4, 2017 Names of historic preservation commissioners, staff and elected officials who attended: John Dornoff Name of Training Session: Policy Webinar: State (and Federal!) Historic Tax Credits Sponsoring organization: National Trust for Historic Preservation Location: Webinar Date: July 20, 2017 Names of historic preservation commissioners, staff and elected officials who attended: John Dornoff Name of Training Session: Commerce + Interpretation: The Possibilities, Pitfalls, and Principles of Shared Use at Historic Sites Sponsoring organization: National Trust for Historic Preservation Location: Webinar Date: September 26, 2017 Names of historic preservation commissioners, staff and elected officials who attended: John Dornoff Name of Training Session: Policy Webinar: Historic Tax Credit Threatened Sponsoring organization: National Trust for Historic Preservation Location: Webinar Date: November 2, 2017 Names of historic preservation commissioners, staff and elected officials who attended: John Dornoff Name of Training Session: Vacant not Blighted Sponsoring organization: Iowa State university Location: Ames, Iowa Date: December 4, 2017 Names of historic preservation commissioners, staff and elected officials who attended: John Dornoff CLG Annual Report 2017 8 Page 104 of 291 Biographical Sketch Applicant for Historic Preservation Commission NAME: Ron Miller ADDRESS: 1135 Independence Ave, Waterloo, IA 50703 WORK PHONE NUMBER WORK: HOME PHONE NUMBER: (232) 232-0698 EMAIL ADDRESS: rmiller742@aol.com INTEREST IN LOCAL HISTORY AND HISTORIC PRESERVATION (Describe education, employment, memberships, publications, and/or other activities which indicate your interest in and commitment to historic preservation; or provide a statement detailing your interest in local history and commitment to historic preservation) EDUCATION: EMPLOYMENT: INTERESTS: While serving on the city of Waterloo Historic Preservation Commission, I will work to insure that the commission enforces the Historic Preservation Ordinance/Resolution; upholds the CLG Agreement with the State of Iowa, and works in compliance with the Secretary of the Interior's Standards for Archaeology and Historic Preservation. Signature Date CLG Annual Report 2017 9 Page 105 of 291 CLG Personnel Table A. Please list the names of the Historic Preservation Commissioners who served during calendar year 2017: Ed Ottesen, Kathy Linda, Katie Orlando, Terry Stevens, Rick Jaacks, Luke Jenson, Ron Miller, and Susan Price. B. CHIEF ELECTED OFFICIAL Name of Mayor, Chairman of Board of Supervisors, or President of LUD Trustees: First Name: Quentin Last Name: Hart Mailing Address: 715 Mulberry Street, Waterloo, Iowa 50703 Phone Number: (319) 291-4301 Email Address: mayor@waterloo-ia.org 2018 (note this is beginning January 2018) C. STAFF PERSON FOR THE HISTORIC PRESERVATION COMMISSION First Name: John Last Name: Dornoff Job Title: Planner I Mailing Address: 715 Mulberry Street, Waterloo, Iowa 50703 Phone Number: (319) 291-4366 Email Address: john.dornoff@waterloo-ia.org CLG Annual Report 2017 10 Page 106 of 291 2018 HISTORIC PRESERVATION COMMISSION: Please note that this is for 2018 Please complete the following and provide information about your new 2017 commission. If the commissioner represents a locally designated district, provide the name of the district (Representative, Name of Historic District). Specify the month, day, and year that the commissioner's term will end (Term Ends). If a commission member serves as contact with the State Historic Preservation Office for the Commission, please circle yes. Electronic and mailed communication will be sent to the staff person for the commission and the contact. CHAIRPERSON/COMMISSIONER First Name: Ed Last Name: ottesen Mailing Address (please provide full mailing address including city and zip code): 1941 West 6th Street; Waterloo, IA 50702 Home Phone Number: (319) 234-1863 Work Phone Number: (319)277-5636 Email Address: edo@leviarch.com Representative, Name of Local Historic District: N/A Term Ends: Month February Day 3rd Year 2020 Please indicate if this person serves as the Contact with the State Historic Preservation Office for the Commission. Circle Yes CLG Annual Report 2017 11 Page 107 of 291 VICE CHAIRPERSON/COMMISSIONER First Name: Katie Last Name: Orlando Mailing Address (please provide full mailing address including city and zip code): 3735 Ravenwood Circle #5, Waterloo, IA 50702 Home Phone Number: (603) 702-0164 Work Phone Number: (319)235-9397 Email Address: katie.orlando@iowabigs.org Representative, Name of Local Historic District: N/A Term Ends: Month June Day 22 Year 2018 Please indicate if this person serves as the Contact with the State Historic Preservation Office for the Commission. Circle No SECRETARY/COMMISSIONER First Name: Susan Last Name: Price Mailing Address (please provide full mailing address including city and zip code): 2753 Fairlane Avenue, Waterloo, IA 50702 Home Phone Number: (319)233-4019 Work Phone Number: N/A Email Address: sueprice49@vahoo.com Representative, Name of Local Historic District: N/A Term Ends: Month January Day 28 Year 2019 Please indicate if this person serves as the Contact with the State Historic Preservation Office for the Commission. Circle No CLG Annual Report 2017 12 Page 108 of 291 COMMISSIONER First Name: Ron Last Name: Miller Mailing Address (please provide full mailing address including city and zip code): 1135 Independence Avenue, Waterloo, IA 50703 Home Phone Number: (319) 239-7194 Work Phone Number: N/A Email Address: rmiller742@aol.com Representative, Name of Local Historic District: Highland Historic District Term Ends: Month may Day 08 Year 2020 Please indicate if this person serves as the Contact with the State Historic Preservation Office for the Commission. Circle No COMMISSIONER First Name: Terry Last Name: Stevens Mailing Address (please provide full mailing address including city and zip code): 1629 Ackermant Street, Waterloo, IA 50703 Home Phone Number: (319) 291-6724 Work Phone Number: (319)833-3129 Email Address: danceterryh2oloo@aol.com Representative, Name of Local Historic District: N/A Term Ends: Month December Day 9 Note: Term in process of being extended. Year 2019 Please indicate if this person serves as the Contact with the State Historic Preservation Office for the Commission. Circle No CLG Annual Report 2017 13 Page 109 of 291 COMMISSIONER First Name: Luke Last Name: Jenson Mailing Address (please provide full mailing address including city and zip code): 1151 Ora Drive, Waterloo, IA 50701 Home Phone Number: (319) 234-4631 Work Phone Number: (319) 610-4688 Email Address: Ijenson@mrs-lawfirm.com Representative, Name of Local Historic District: N/A Term Ends: Month May Day 2 Year 2019 Please indicate if this person serves as the Contact with the State Historic Preservation Office for the Commission. Circle No COMMISSIONER First Name: Rick Last Name: Jaacks Mailing Address (please provide full mailing address including city and zip code): 2825 West Lith Street, Waterloo, IA 50701 Home Phone Number: (319) 433-6130 Work Phone Number: (507) 258-1708 Email Address: rjaacks@communitybt.com Representative, Name of Local Historic District: N/A Term Ends: Month October Day 10 Year 2019 Please indicate if this person serves as the Contact with the State Historic Preservation Office for the Commission. Circle No CLG Annual Report 2017 14 Page 110 of 291 CITY OF WATERLOO Council Communication Resolution approving Amendment to the Development Agreement with Cardinal Construction of Waterloo, Iowa, approved August 7, 2017, for the property to be platted as Brock Third Addition, and authorize the Mayor and City Clerk to execute said documents. City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Reviewer Action Date Planning & Zoning Schroeder, Aric Approved 2/21/2018 - 10:55 AM Clerk Office Even, LeAnn Approved 2/21/2018 - 12:12 PM ATTACHMENTS: Description Type o Amendment to Development Agreement Backup Material SUBJECT: Resolution approving Amendment to the Development Agreement with Cardinal Construction of Waterloo, Iowa, approved August 7, 2017, for the property to be platted as Brock Third Addition, and authorize the Mayor and City Clerk to execute said documents. Submitted by: Submitted By: Noel Anderson, Community Planning & Development Director Recommended Action: Approve Resolution as requested The City has entered into a development agreement with Cardinal construction on August 7, 2017 for the construction of their new building Summary Statement: along Martin Road. This amendment would allow for the property to be platted as Brock Third Addition. The parties will work together in formulating and finalizing the plat. Cardinal construction has also reviewed preliminary and final plats and consents to the platting of the lot. Expenditure Required: No new Source of Funds: NA Policy Issue: Economic Development - Goals 1, 3, and 4 in the City of Waterloo Strategic P Ian. Alternative: NA Background Information: The City has entered into a development agreement with Cardinal construction and is now working to plat the property in question. The amendment will allow the city to move forward with platting the property to allow for conveyance of the lot to Cardinal Construction. Page 111 of 291 Legal Descriptions: To be platted as Lot 1 of Brock Third Addition (12.91 acres total) Page 112 of 291 Prepared by Christopher S. Wendland P.O. Box 596, Waterloo IA 50703. 319-234-5701 Return to Waterloo Planning Dept, 715 Mulberry Street, Waterloo, IA 50703 AMENDMENT TO DEVELOPMENT AGREEMENT This Amendment to Development Agreement (the "Amendment") is entered into as of , 2018, by and between the City of Waterloo, Iowa ("City") and Cardinal Construction, Inc. ("Company"). RECITALS A. Company and City are parties to that certain Development Agreement dated August 7, 2017 (the "Agreement") concerning the development of property as described in the Agreement. B. The parties desire to amend the Agreement on the terms set forth herein. NOW, THEREFORE, in consideration of the premises and of other consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree to amend the Agreement as follows: 1. The Agreement is amended to add the following new Section 2.1: 2.1. Platting of Property. The parties agree that the Property is to be platted as Brock Third Addition. The parties will cooperate in formulating and finalizing the plat. Company acknowledges that it has reviewed preliminary and final plats of Brock Third Addition and hereby consents to said platting. 2. Exhibit "A" is hereby stricken in its entirety, and a new Exhibit "A" as attached to this Amendment is substituted in its place. 3. Except as modified herein, the Agreement shall continue unmodified in full force and effect. Capitalized terms used herein that are not defined in this Amendment shall have the meaning attributed to them in the Agreement. The Agreement and this Amendment shall inure to the benefit of and be binding upon the parties and their respective successors and assigns. IN WITNESS WHEREOF, the parties have executed this Amendment to Development Agreement by their duly authorized representatives as of the date first set forth above. Page 113 of 291 CARDINAL CONSTRUCTION, INC. CITY OF WATERLOO, IOWA By: By: Quentin M. Hart, Mayor Title: 2 Attest: Kelley Felchle, City Clerk Page 114 of 291 EXHIBIT "A" Legal Description of Property See attached. Page 115 of 291 CITY OF WATERLOO Council Communication Resolution approving an agreement with the Waterloo Water Works for water main replacements, in conjunction with FY 2018 Street Reconstruction Program, Contract No. 944, and authorize the Mayor and City Clerk to execute said document. City Council Meeting: 2/26/2018 Prepared: 2/20/2018 REVIEWERS: Department Reviewer Action Date Engineering Thorson, Eric Rejected 2/20/2018 - 11:05 AM Engineering Ross, Tracia Approved 2/20/2018 - 11:15 AM Engineering Thorson, Eric Rejected 2/20/2018 - 11:35 AM Engineering Ross, Tracia Approved 2/20/2018 - 12:28 PM Engineering Thorson, Eric Approved 2/20/2018 - 12:33 PM Clerk Office Even, LeAnn Approved 2/21/2018 - 12:05 PM ATTACHMENTS: Description Type D Cont 944_WWW agreement Cover Memo SUBJECT: Submitted by: Summary Statement: Source of Funds: Resolution approving an agreement with the Waterloo Water Works for water main replacements, in conjunction with FY 2018 Street Reconstruction Program, Contract No. 944, and authorize the Mayor and City Clerk to execute said document. Submitted By: Dennis Gentz, PE, Assistant City Engineer The City of Waterloo will be responsible for the cost of the reconstruction of the street and the Waterloo Water Works will be responsible for the cost of the water main replacement. The City will process the payments to the contractor and will then be reimbursed by the Waterloo Water Works. Street Recon portion - Local Option Sales Tax Funds Water Main portion - Waterloo Water Works Funds Page 116 of 291 CITY OF WATERLOO F.Y. 2018 STREET RECONSTRUCTION PROGRAM, CONTRACT No. 944 AGREEMENT NOW on this day of , 2018, the Waterloo Water Works and the City of Waterloo, Iowa, enter into this Agreement for and in consideration of the mutual covenants and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. I. RECITALS WHEREAS, the street reconstruction and water main replacements and extensions are to be constructed in the same corridors (Refer to E. AREA COVERED) in which the parties have some interest, are proposed to be constructed in calendar year 2018; and WHEREAS, the parties presently have varying degrees of responsibilities for the reconstruction of various streets in the F.Y. 2018 Street Reconstruction Program, Contract No. 944 and the replacement and extension of the existing water main in the streets listed below in E. AREA COVERED; and WHEREAS, the parties believe that the payments to be made to the contractor would best be handled by the City of Waterloo. NOW, THEREFORE, the parties agree as follows: II. TERMS OF AGREEMENT A. PURPOSE. Refer to Recitals. B. JURISDICTION. The jurisdiction for responsibility for design, inspection and funding shall be: Division I — City of Waterloo Division II — Waterloo Water Works C. FINANCING. The Waterloo Water Works and the City of Waterloo shall share the costs for the Project according to the following: 1. The Waterloo Water Works shall pay for the entire cost of reconstruction or extension of the water mains along the proposed corridors. (Division II) 2. The City of Waterloo shall pay for the entire cost of reconstruction of the streets along the proposed corridors. (Division I) Page 117 of 291 3. The City of Waterloo shall be responsible for administering the payments to the contractor, to bill the Waterloo Water Works and the Waterloo Water Works shall make payment within fifteen (15) days of said billing. 4. Financing for this Project shall be the responsibility of each of the parties hereto as reflected in this Agreement. D. ADMINISTRATION OF AGREEMENT. The Waterloo Water Works shall prepare plans, specifications, estimate of quantities, estimate of cost, etc. and submit them to the City, to be included in the contract as Division II. A licensed professional engineer in the state of Iowa, who is a representative of the Waterloo Water Works, shall sign the Division II Plans and Specifications. The City of Waterloo shall follow the current City bidding procedures for the project and administer the letting phase of this project. The construction phase of this project shall be administered with City of Waterloo for Division I and Waterloo Water Works for Division II. The Waterloo Water Works shall be notified of all meetings involving said Project and shall have the right of review and acceptance for each of the following phases for Division II: 1. Bid Award Approval; 2. Final Construction Approval. E. AREA COVERED. The area covered by this Agreement shall be: a. Coachman Drive — from the east intersection of Carriage Hill Drive, north and west to the dead end of Coachman Drive (1800-2000 blocks) b. Denver Street — at the intersection of Hawthorne Avenue F. DURATION. This Agreement shall be in effect until completion of the construction or termination by written agreement of all parties. DATED this day of , 2018. Page 118 of 291 Waterloo Water Works By: Mary Potter, Chair Board of Trustees Waterloo Water Works ATTEST: Matthew L. Mahler, General Manager and Board Secretary STATE OF IOWA, BLACK HAWK COUNTY, ss: On this day of , 2017, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Mary Potter and Matthew L Mahler, to me personally known, and who, being by me duly sworn, did say that they are the Board of Trustees Chair and the General Manager and Board Secretary, respectively, of the Waterloo Water Works; and that the instrument was signed and sealed on behalf of the utility by authority of its Board of Trustees as contained in the Resolution adopted by the Board of Trustees, on the day of , 2018 and that Mary Potter and Matthew L Mahler acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the utility, by it voluntarily executed. Notary Public in and for the State of Iowa Page 119 of 291 CITY OF WATERLOO, IOWA By: Quentin Hart, Mayor City of Waterloo ATTEST: Kelley Felchle, City Clerk STATE OF IOWA, BLACK HAWK COUNTY, ss: On this day of , 2018, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Quentin Hart and Kelley Felchle, to me personally known, and who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waterloo, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation by authority of its City Council as contained in the Resolution adopted by the City Council, under Council Action No. of the City Council on the day of , 2018, and that Quentin Hart and Kelley Felchle acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. Notary Public in and for the State of Iowa Page 120 of 291 CITY OF WATERLOO Council Communication Resolution approving an agreement with the Waterloo Water Works for water main replacements in conjunction with FY 2018 University Avenue Reconstruction Phase I - Greenhill Road to Evergreen Avenue, Contract No. 933, and authorize the Mayor and City Clerk to execute said document. City Council Meeting: 2/26/2018 Prepared: 2/20/2018 REVIEWERS: Department Reviewer Action Date Engineering Thorson, Eric Rejected 2/20/2018 - 11:34 AM Engineering Ross, Tracia Approved 2/20/2018 - 12:29 PM Engineering Thorson, Eric Approved 2/20/2018 - 12:34 PM Clerk Office Even, LeAnn Approved 2/21/2018 - 12:08 PM ATTACHMENTS: Description Type Cont 933_WWW Agreement Cover Memo SUBJECT: Submitted by: Summary Statement: Source of Funds: Resolution approving an agreement with the Waterloo Water Works for water main replacements in conjunction with FY 2018 University. Avenue Reconstruction Phase I - Greenhill Road to Evergreen Avenue, Contract No. 933, and authorize the Mayor and City Clerk to execute said document. Submitted By: Dennis Gentz, PE, Assistant City Engineer The City of Waterloo will be responsible for the cost of the reconstruction of the street and the Waterloo Water Works will be responsible for the cost of the water main replacement. The City will process the payments to the contractor and will then be reimbursed by the Waterloo Water Works. Street Recon portion - University Avenue Transfer of Jurisdiction Funds Water Main portion - Waterloo Water Works Funds Page 121 of 291 CITY OF WATERLOO F.Y. 2018 UNIVERSITY AVENUE RECONSTRUCTION - PHASE 1 CONTRACT No. 933 AGREEMENT NOW on this day of , 2018, the Waterloo Water Works and the City of Waterloo, Iowa, enter into this Agreement for and in consideration of the mutual covenants and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. I. RECITALS WHEREAS, the University Avenue reconstruction and water main replacements and extensions are to be constructed in the same corridors (Refer to E. AREA COVERED) in which the parties have some interest, are proposed to be constructed in calendar year 2018; and WHEREAS, the parties presently have varying degrees of responsibilities for the reconstruction of University Avenue in the F.Y. 2018 University Avenue Reconstruction - Phase 1, Contract No. 933, and the replacement and extension of the existing water main in the segment of University Avenue listed below in E. AREA COVERED; and WHEREAS, the parties believe that the payments to be made to the contractor would best be handled by the City of Waterloo. NOW, THEREFORE, the parties agree as follows: II. TERMS OF AGREEMENT A. PURPOSE. Refer to Recitals. B. JURISDICTION. The jurisdiction for responsibility for design, inspection and funding shall be: Division 1— City of Waterloo Division 11 — Waterloo Water Works C. FINANCING. The Waterloo Water Works and the City of Waterloo shall share the costs for the Project according to the following: 1. The Waterloo Water Works shall pay for the entire cost of reconstruction or extension of the water mains along the proposed corridors. (Division 11) 2. The City of Waterloo shall pay for the entire cost of reconstruction of University Avenue along the proposed corridor. (Division I) Page 1 of 4 Page 122 of 291 3. The City of Waterloo shall be responsible for administering the payments to the contractor, to bill the Waterloo Water Works and the Waterloo Water Works shall make payment within fifteen (15) days of said billing. 4. Financing for this Project shall be the responsibility of each of the parties hereto as reflected in this Agreement. D. ADMINISTRATION OF AGREEMENT. AECOM shall prepare plans, specifications, estimate of quantities, estimate of cost, etc. and include them in the contract as Division 11. A licensed professional engineer in the state of Iowa, shall sign the Division 11 Plans and Specifications. The City of Waterloo shall follow the current City bidding procedures for the project and administer the letting phase of this project. The construction phase of this project shall be administered with City of Waterloo for Division I and Waterloo Water Works for Division 11. The Waterloo Water Works shall be notified of all meetings involving said Project and shall have the right of review and acceptance for each of the following phases for Division II: 1. Bid Award Approval; 2. Final Construction Approval. E. AREA COVERED. The area covered by this Agreement shall be: a. University Avenue — from Greenhill Road to Evergreen Avenue F. DURATION. This Agreement shall be in effect until completion of the construction or termination by written agreement of all parties. DATED this day of , 2018. Page 2 of 4 Page 123 of 291 Waterloo Water Works By: Mary Potter, Chair Board of Trustees Waterloo Water Works ATTEST: Matthew L. Mahler, General Manager and Board Secretary STATE OF IOWA, BLACK HAWK COUNTY, ss: On this day of , 2018, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Mary Potter and Matthew L. Mahler, to me personally known, and who, being by me duly sworn, did say that they are the Board of Trustees Chair and the General Manager and Board Secretary, respectively, of the Waterloo Water Works; and that the instrument was signed and sealed on behalf of the utility by authority of its Board of Trustees as contained in the Resolution adopted by the Board of Trustees, on the day of , 2018 and that Mary Potter and Matthew L. Mahler acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the utility, by it voluntarily executed. Notary Public in and for the State of Iowa Page 3 of 4 Page 124 of 291 CITY OF WATERLOO, IOWA By: Quentin Hart, Mayor City of Waterloo ATTEST: Kelley Felchle, City Clerk STATE OF IOWA, BLACK HAWK COUNTY, ss: On this day of , 2018, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Quentin Hart and Kelley Felchle, to me personally known, and who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waterloo, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation by authority of its City Council as contained in the Resolution adopted by the City Council, under Council Action No. of the City Council on the day of , 2018, and that Quentin Hart and Kelley Felchle acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. Notary Public in and for the State of Iowa Page 4of4 Page 125 of 291 CITY OF WATERLOO Council Communication Resolution approving Facility Plan and the Intended Use Plan application (IUP) for funding from the State Revolving Fund in conjunction with FY 2019 Sanitary Sewer Gatewell Repairs, Contract No. 951 and authorize the Mayor to execute said document. City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Reviewer Action Date Engineering Thorson, Eric Approved 2/21/2018 - 10:25 AM Clerk Office Even, LeAnn Approved 2/21/2018 - 12:15 PM ATTACHMENTS: Description Type o Cont 951_Exec Summary Cover Memo o Cont 951_IUP app Cover Memo Resolution approving Facility Plan and the Intended Use Plan application SUBJECT: (IUP) for funding from the State Revolving Fund in conjunction with FY 2019 Sanitary Sewer Gatewell Repairs, Contract No. 951 and authorize the Mayor to execute said document. Submitted by: Submitted By: Jamie Knutson, PE, Associate Engineer Source of Funds: State Revolving Loan Fund will be repaid with Sewer Fees Background Information: See the attached Executive Summary Page 126 of 291 Facility Plan Sanitary Gatewell Repairs City of Waterloo, Iowa EXECUTIVE SUMMARY The city of Waterloo is the sixth largest city in Iowa and is located on the Cedar River in northeastern Iowa. The City is protected from flooding by the Cedar River via a system of levees and walls that are approximately 20 miles long. In locations where a sanitary sewer crosses the levee or wall system, a gatewell or valve well is located on the sewer such that the gate or valve can be closed if there is a failure in the sanitary pipe on the wet side of the line of protection (levee or wall). In a recent inspection, the Army Corps of Engineers (ACOE) found that a majority of these gates and valves were nonfunctional. The purpose of the project is to repair these crossings such that the sanitary lines can be blocked in case of pipe failure during a flood. The purpose and scope of the project is as follows: 1. Repair the concrete tops and hatches and install new gates in 25 gatewell locations. 2. Install new valve wells to replace existing valve wells in 2 locations. Replace a valve well with a gatewell in one location. 3. install 1,246 LF of 8 -inch sewer and 147 LF of 12 -inch sewer in the areas between West 6th Street and West 11th Street to consolidate the sanitary sewer and install two new gatewells. 4. Check for operability of three gatewells and repair, if needed. Since the repairs are required by the ACOE, no other alternatives were considered viable. The cost for making these improvements is approximately $3.11 million. An environmental review of areas where excavation will take place to consolidate crossings or where new valve wells are to be installed will be required. Permits from the ACOE and the IDNR Flood Plain sections will be obtained where the levee/wall system will be disturbed. The project is anticipated to begin construction in summer of 2018, with anticipated completion in the fall of 2019. 8 Gatewcit dei February 2018 Page 127 of 291 CLEAN WATER STATE REVOLVING FUND INTENDED USE PLAN (IUP) APPLICATION Application Packet Checklist Application Packet Instructions IUP Application Form Real Property Assurance Form SRF STATE REVOLVING FUND The application for inclusion on the Clean Water State Revolving Fund (CWSRF) IUP can be submitted only when the wastewater project is at the right stage of the construction permitting process. This packet outlines the requirements of the permitting process that must be met and includes the materials and information needed to complete the IUP application. Please use the checklist and instructions to make sure your application is complete before submitting it. APPLICATION PACKET CHECKLIST A. Construction Permitting Information -- To Be Completed by Applicant For DNR Use Applicant Name City of Waterloo 1. DNR Number (e.g. W2014-#### or 52014-####) 2018-0100 Yes ❑ No ❑ 2. DNR Project Manager Name NichelleAnderson Yes ❑ No ❑ 3. Project Identification: City of Waterloo Sanitary Gatewell Repairs Yes ❑ No ❑ 4. Project Initiation Meeting Held (date) 09/29/17 Yes ❑ No ❑ 5. Flows and Loads Concurrence by DNR (date or N/A) If N/A, state reason: No additional flows or loads because of project. N/A Yes ❑ No ❑ 6. Wasteload Allocation Completed (date or N/A — see 5. above) N/A Yes ❑ No ❑ 7. Antidegradation Alternatives Analysis Required (if no, go to 8.) Yes ❑ No Yes ❑ No ❑ 7a. Alternatives Analysis Approved by DNR (date or N/A) N/A Yes ❑ No ❑ 8. Three Copies of Certified Facility Plan Yes Yes ❑ No ❑ 8a. If Already Submitted (submitted date) Certification Date: Yes ❑ No ❑ 9. Iowa Construction Permit Application Schedule A Yes Yes ❑ No ❑ 10. Schedules F and G (if needed for the project) If N/A, state reason: No new site or additional data used. Yes ❑ N/A iQ Yes ❑ No ❑ For DNR Use: The Applicant has followed the DNR Wastewater Construction to be placed on the IUP pending review of the SRF information requirements. DNR Project Manager: Date: Permitting Process and the project is eligible B. State Revolving Fund Information -- To Be Completed by Applicant For SRF Use 11. IUP Application Signed Yes Yes ❑ No ❑ 12. DUNS Number Included (note: Form 4700-4 no longer required) Yes Yes ❑ No n 13. Property Assurance Form Signed Yes Yes ❑ No ❑ 14. SRF Environmental Review Checklist and Attachments Completed and Submitted Yes Yes ❑ No ❑ For SRF Use: The IUP application materials are complete. The application will be placed on the IUP (IUP Year), (IUP Quarter) with CWSRF Number C51920 . February 2015 DNR Form 542-1320 INVESTING IN IOWA'S WATER www.iowasrf.com C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\E351341A-EB64-4E8F-9D96-446A0478456C\Waterloo.12520.1.Cont_951_IUP_app.doc Page 128 of 291 SRF STATE REVOLVING FUND DNR SRF Administrative Assistant: Date: CLEAN WATER STATE REVOLVING FUND INTENDED USE PLAN (IUP) APPLICATION INSTRUCTIONS ITEMS 1— 9: Wastewater Permitting The Clean Water SRF Intended Use Plan Application will only be accepted when Items 1-9 have been completed through the Wastewater Construction Permitting Process of the DNR Wastewater Engineering Section. Please refer to the Wastewater Permitting Process Manual for detailed information on these steps. 1. DNR Number (e.g. W2014-#### or S2014-####): All wastewater construction projects are assigned unique numbers for tracking by DNR. A number beginning with W and the fiscal year indicates a Work Record. A number beginning with S and the fiscal year indicates a Project. 2. DNR Project Manager Name: A project manager from the DNR Wastewater Engineering Section is assigned to each project. 3. Project Identification: A brief description of the project is required in Design Schedule A, General Information. The project description must fall under the project scope established at the project initiation meeting. An accurate description is necessary because multiple construction contracts may have the same project numbers, 4. Project Initiation Meeting Held (date): A project initiation meeting must be held with the DNR, Owner, Consulting engineer (licensed professional engineer), and other parties. 5. Flows and Loads Concurrence by DNR (date): If flows and loadings will change due to the project, the DNR Project Manager must concur with the proposed design flows and loadings prior to preparing the Facility Plan. 6. Wasteload Allocation Completed (date): If a Wasteload Allocation is required for the project, it must be received by the Owner before preparing the Facility Plan. 7. Antidegradation Alternatives Analysis Required; 7a. Alternatives Analysis Approved by DNR (date): If an antidegradation alternatives analysis is required for the project, it must be approved by the DNR Project Manager before the Owner prepares the Facility Plan. If a Facility Plan is submitted prior to DNR approval of Antidegradation Alternatives Analysis, it will not be accepted for review. 8. Three Copies of Certified Facility Plan; 8a. If Already Submitted (date) and Certification Date: After completing all applicable planning steps as discussed above, the Facility Plan may be submitted to DNR. If three copies of the Facility Plan have already been submitted, please note the date submitted and certified and do not send additional copies. INVESTING IN IOWA'S WATER February 2015 www.iowasrf.com DNR Form 542-1320 C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\E351341A-EB64-4E8F-9D96-446A0478456C\Waterloo.12520.1.Cont_951_IUP_app.doc Page 129 of 291 9. Iowa Construction Permit Application Schedule A: Design Schedule A must be certified by both the Owner and the Consulting engineer (licensed professional engineer). It is required for all wastewater projects. Schedule A must indicate that Clean Water SRF financing will be requested to be considered as part of this IUP application. 10. Schedules F and G (if needed for the project): Schedule G provides Wastewater Treatment Plant project design information and Schedule F provides site information for treatment process site selection. ITEMS 11 — 14: Clean Water SRF SRF STATE REVOLVING FUND 11. IUP Application Signed: The Intended Use Plan application must be signed by the Owner's authorized representative. 12. DUNS Number Included: The Dun and Bradstreet Number (DUNS) was collected as part of EPA 4700-4 form. That form is no longer required for SRF applicants. If the Owner does not have a DUNS number, go to http://fedgov.dnb.com/webform to request one. While loan recipients no longer have to fill out the 4700-4 form, it is important to note that they are still required to comply with Title VI of the Civil Rights Act of 1964. Title VI provides that no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. 13. Property Assurance Form Signed: This form is required whether or not the Owner currently intends to purchase land using SRF funds. Land for siting treatment facilities is an eligible cost as of October 1, 2014. 14. SRF Environmental Review Checklist and Attachments Completed and Submitted: The ER checklist outlines the information needed to start the SRF ER Services. Supporting materials may be requested to document funding requests and system needs. Please include the following items with your application: ■ Three official copies of the Facility Plan (unless previously submitted) ■ Iowa Construction Permit Application Schedules A (and F and G where applicable). ■ Materials included in Exhibit 5: SRF Environmental Review Checklist ■ Real Property Assurance Form with authorized signature Application materials should be sent to: State Revolving Fund, c/o DNR Wastewater Engineering Section Iowa Department of Natural Resources 502 E. 9th Street Des Moines, IA 50319-0034 Quarterly Application Deadlines For More Information about the Clean Water SRF IUP Application, contact Patti Cale -Finnegan, 515-725-0498 or patti.cale-finnegan@dnr.iowa.gov. INVESTING IN IOWA'S WATER February 2015 www.iowasrf.com DNR Form 542-1320 C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\E351341A-EB64-4E8F-9D96-446A0478456C\Waterloo.12520.1.Cont_951_IUP_app.doc Page 130 of 291 CLEAN WATER STATE REVOLVING FUND INTENDED USE PLAN (IUP) APPLICATION FORM This form may be used to apply for inclusion on the project priority list of the Clean Water SRF IUP at the time a complete Facility Plan is submitted. IUPs are developed on an annual basis with quarterly updates as needed. This form is not an application for a loan. SRF loan application materials may be obtained at www.lowaSRF.com. The loan application should not be completed until after bids are received. SRF STATE REVOLVING FUND Instructions: Complete the requested information in the following sections to the best of your ability. Please print or type the information on the form. If a particular item does not apply to your system, enter n/a for "not applicable." Attach supporting documentation as needed. Keep a copy of the completed application for your records, submit a copy to your engineer, and submit the original signed form to the following address: State Revolving Fund, c/o DNR Wastewater Engineering Section Iowa Department of Natural Resources 502 E. 9th Street Des Moines, IA 50319-0034 Section 1: Applicant and Consulting Engineer Information Applicant Name: City of Waterloo Mailing Address: 715 Mulberry Street City, State, Zip + 4 Waterloo, Iowa 50703 Authorized Representative: Quentin Hart Signature: Title: Mayor Telephone Number: 319-291-4301 E-mail: mayor@waterloo-ia.org DUNS Number: 058005404 Consulting Engineer: Harman Mallhi, PE Firm: AECOM Firm Address: 501 Sycamore Street, Suite 222 City, State, Zip + 4 Waterloo, Iowa 50703 Telephone Number: 319-232-6531 E-mail: harman.mallhi@aecom.com NPDES Facility No.: 0790001 February 2015 DNR Form 542-1320 INVESTING IN IOWA'S WATER www.iowasrf.com C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\E351341A-EB64-4E8F-9D96-446A0478456C\Waterloo.12520.1.Cont_951_IUP_app.doc Page 131 of 291 Section 2: Project Schedule Anticipated final plans and specifications submittal date: June 2018 Anticipated construction start date: August 2018 Section 3: Brief Project Summary (Attach additional pages if necessary.) Describe the reasons or the needs for the proposed project: (i.e. specific water quality problem or system improvement) The City is protected from flooding in the Cedar River via a system of levee and walls that are approximately 20 miles long. In locations where a sanitary sewer crosses the levee and wall system a gate well or valve well is located on the sewer such that the gate or valve can be closed if there is a failure in the pipe on the wet side of the line of protection. In a recent inspection the Army Corps of Engineers (ACOE) found that a majority of these gates and valves were nonfunctional. The purpose of the project is to repair these crossings such that the sanitary lines can be blocked in case of pipe failure during a flood. Describe the scope of the proposed project: (i.e., specific solution to the water quality problem, or proposed system improvement) The scope of the project is as follows: 1. Repair the concrete tops, hatches and install new gates in 25 gate wells 2. Install new valve wells to replace existing valve wells in 2 locations. Replace a gate well with a valve well in one location. 3. Install 1,246 LF of 8 in sewer and 147 LF of 12 in sewer in the areas between W 6th St. and W 11th St. to consolidate the sewer and install two new gate wells. 4. Check for operability of 3 gate wells and repair if needed. Which other funding programs are you considering to assist in completion of this project? Check all that apply: ❑ Community Development Block Grant (CDBG) ❑ Rural Development Grant and/or Loan ❑ Reserve Funds ❑ Other: Compliance Status ❑ Has been referred to the Iowa Attorney General ❑ Has received administrative order from DNR ❑ Under compliance schedule in the NPDES permit Other: Army Corps of Engineers Section 4: Project Environmental Outcomes Primary Impacted Waterbody NHD Reach Code: Cedar River Designated Surface Water Uses (e.g. Al, BWW): Al, Class 8 (WW1), Class HH Project Will Contribute to Water Quality... (check one) ❑ Improvement ❑ Maintenance ❑ Not Applicable Project Will Allow the System to... (check one) ❑ Achieve Compliance Maintain Compliance ❑ Not Applicable Project Will Allow the System to Address...(check all that apply) A Existing TMDL ❑ Projected TMDL ❑ Watershed Management Plan February 2015 C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\E351341A-EB64-4E8F-9D96-446A0478456C\Waterloo.12520.1.Cont_951_IUP_app.doc Page 132 of 291 Section 5: Project Cost Cost Category Estimated Total Cost in $ Name of Contact Person: Legal Expenses Mailing Address: $8,000 Land and Easements + Telephone Number: Engineering Planning Fees + kcooper@ahlerslaw.com Engineering Design Fees + $190,000 Engineering Construction Fees + $250,000 Construction + $2,552,000 Equipment + Other: + Other: + PROJECT SUBTOTAL = $3,000,000 Contingencies + $563,000 Planning and design loan proceeds, if rolling into construction loan + Less Any Funds Requested from Other Sources - LOAN SUBTOTAL = $3,563,000 Loan Initiation Fee (Loan Subtotal x .005) + $17,815 TOTAL IUP REQUEST (Round to the nearest $1,000) = $3,581,000 Section 6: Consultants Bond Counsel Firm: Ahlers Cooney Name of Contact Person: Kristin Billingsley Cooper Mailing Address: 100 Court Avenue, Suite 600 City, State, and Zip: Des Moines, Iowa 50309-2231 Telephone Number: 515-246-0330 Email Address: kcooper@ahlerslaw.com Municipal Advisor Firm: Speer Financial, Inc. Name of Contact Person: Maggie J. Burger Mailing Address: 531 Commercial Street, Suite 608 City, State, and Zip: Waterloo, Iowa 50701 Telephone Number: 319-291-2077 Email Address: mburger@speerfinancial.com Please provide these contacts if known at the time of application. The requirement to engage a Municipal (Financial) Advisor is new to SRF for projects starting in fiscal year 2015. February 2015 C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\E351341A-EB64-4E8F-9D96-446A047B456C\Waterloo.12520.1.Cont_951_IUP_app.doc Page 133 of 291 Section 7: Acquisition of Property by SRF Applicants U.S. ENVIRONMENTAL PROTECTION AGENCY ASSURANCE WITH RESPECT TO REAL PROPERTY ACQUISITION OF TITLE 111 OF THE UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES ACT OF 1970 AS AMENDED The City of Waterloo (Applicant) hereby assures that it has authority under applicable State and local law to comply with Section 213 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Public Law 91-646, 84 Stat. 1894 (42 U.S.C. 4601) as amended by the Surface Transportation and Uniform Relocation Assistance Act of 1987, Title IV of Public Law 100-17, 101 Stat. 246-256 (42 U.S.C. 4601 note) and 49 CFR 1.48(cc); and certifies, assures and agrees that, notwithstanding any other provision set forth in the application: 1. For projects resulting in the displacement of any person: a. It will adequately inform the public of the relocation payments and services which will be available as set forth in Subparts A, C, D and E of 49 CFR 24. b. It will provide fair and reasonable relocation payments to displaced persons as required by Subparts D and E of 49 CFR 24. c. It will provide a relocation assistance program for displaced persons offering services described in Subpart C of 49 CFR 24. d. Comparable replacement dwellings will be available pursuant to Subpart F of 49 CFR 24, or provided if necessary, a reasonable period in advance of the time any person is displaced. e. In acquiring real property, it will provide at least 90 days written notice to each lawful occupant of real property acquired, stating the date such occupant is required to move from a dwelling or to move his business or farm operation. 2. For projects resulting in the acquisition of real property: a. It will fully comply with the requirements of Subpart B of 49 CFR 24. b. It will adequately inform the public of the acquisition policies, requirements and payments which apply to the project. c. It will make every effort to acquire real property expeditiously through negotiation. d. Before the initiation of negotiations it will have the real property appraised and give the owner or his representative an opportunity to accompany the appraiser during inspection of the property, except as provided in 49 CFR 24.102(c)(2). e. Before the initiation of negotiations it will establish an amount which it believes to be just compensation for the real property, and make a prompt offer to acquire the property for that amount; and at the same time it will provide the owner a written statement of the basis for such amount in accordance with 49 CFR 24.102. f. Before requiring any owner to surrender possession of real property it will pay the agreed purchase price; or deposit with the court, for the benefit of the owner, an amount not less than the approved appraisal of the fair market value of the property; or pay the amount of the award of compensation in a condemnation proceeding for the property. February 2015 C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\E351341A-EB64-4E8F-9D96-446A0478456C\Waterloo.12520.1.Cont_951_IUP_app.doc Page 134 of 291 g. If interest in real property is to be acquired by exercise of the power of eminent domain, it will institute formal condemnation proceedings and not intentionally make it necessary for an owner to institute legal proceedings to prove the fact of the taking of this real property; and h. It will offer to acquire the entire property, if acquisition of only part of a property would leave its owner with an uneconomic remnant. References to 49 CFR are citations to Title 49, Code of Federal Regulations, Part 24, published in the Federal Register Vol. 54, No. 40, March 2, 1989. This document is hereby made part of and incorporated in any contract or agreement, or any supplements and amendments thereto, relating to the above -identified application and shall be deemed to supersede any provision therein to the extent that such provisions conflict with the assurances or agreements provided therein. City of Waterloo (Legal Name of Applicant) By (Signature of Authorized Representative) (Date) February 2015 C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\E351341A-EB64-4E8F-9D96-446A0478456C\Waterloo.12520.1.Cont_951_IUP_app.doc Page 135 of 291 CITY OF WATERLOO Council Communication Resolution affirming support of the State Historic Tax Credit Program. City Council Meeting: 2/26/2018 Prepared: 2/22/2018 REVIEWERS: Department Reviewer Action Date Mayor Office Felchle, Kelley Approved 2/22/2018 - 3:16 PM ATTACHMENTS: Description Type ❑ Senate Study Bill 3197 Backup Material ❑ Proposed Resolution Backup Material SUBJECT: Resolution affirming support of the State Historic Tax Credit Program. Submitted by: Submitted By: Mayor Quentin Hart Recommended Action: Approval. Page 136 of 291 Senate Study Bill 3197 - Introduced SENATE FILE BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) A BILL FOR 1 An Act relating to state and local revenue and finance by 2 modifying the individual and corporate income taxes, the 3 franchise tax, tax credits, the moneys and credits tax, the 4 sales and use taxes and local option sales tax, the hotel 5 and motel excise tax, the automobile rental excise tax, the 6 Iowa educational savings plan trust, and the disabilities 7 expenses savings plan trust, making penalties applicable, 8 and including immediate effective date and retroactive and 9 other applicability provisions. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5452XC (3) 87 mm/jh Page 137 of 291 S.F. 1 DIVISION I 2 INCOME TAX CHANGES FOR TAX YEAR 2018 3 Section 1. EARNED INCOME TAX CREDIT FOR 2018. 4 Notwithstanding the definition of -Internal Revenue Code"" 5 in section 422.3, for tax years beginning during the 2018 6 calendar year, any reference to the term "Internal Revenue 7 Code"" in section 422.12B shall mean the Internal Revenue Code 8 of 1954, prior to the date of its redesignation as the Internal 9 Revenue Code of 1986 by the Tax Reform Act of 1986, or means 10 the Internal Revenue Code of 1986 as amended and in effect on 11 January 1, 2016, but shall not be construed to include any 12 amendment to the Internal Revenue Code enacted after January 1, 13 2016, including any amendment with retroactive applicability 14 or effectiveness. 15 Sec. 2. ACCOUNTING METHOD AND OTHER MISCELLANEOUS 16 COUPLING PROVISIONS FOR TAX YEAR 2018. Notwithstanding any 17 other provision of law to the contrary, amendments to the 18 Internal Revenue Code enacted in Pub. L. No. 115-97, §13102, 19 §13221, §13504, §13541, §13543, §13611, and §13613, apply in 20 calculating federal adjusted gross income or federal taxable 21 income, as applicable, for state tax purposes for purposes of 22 chapter 422 for tax years beginning during the 2018 calendar 23 year to the extent those amendments affect the calculation of 24 federal adjusted gross income or federal taxable income, as 25 applicable, for federal tax purposes for tax years beginning 26 during the 2018 calendar year. 27 Sec. 3. TEACHER EXPENSE DEDUCTION. Notwithstanding any 28 other provision of law to the contrary, for tax years beginning 29 during the 2018 calendar year, a taxpayer is allowed to take 30 the deduction for certain expenses of elementary and secondary 31 school teachers allowed under section 62(a)(2)(D) of the 32 Internal Revenue Code, as amended by Pub. L. No. 114-113, 33 division Q, §104, in computing net income for state tax 34 purposes. 35 Sec. 4. EFFECTIVE DATE. This division of this Act, being LSB 5452XC (3) 87 -1- mm/jh Page 1- '838f 291 S.F. 1 deemed of immediate importance, takes effect upon enactment. 2 Sec. 5. RETROACTIVE APPLICABILITY. This division of this 3 Act applies retroactively to January 1, 2018, for tax years 4 beginning on or after that date, but before January 1, 2019. 5 DIVISION II 6 INCOME TAX AND FRANCHISE TAX CHANGES BEGINNING IN 2019 7 Sec. 6. Section 217.39, Code 2018, is amended to read as 8 follows: 9 217.39 Persecuted victims of World War II — reparations — 10 heirs. 11 Notwithstanding any other law of this state, payments paid 12 to and income from lost property of a victim of persecution 13 for racial, ethnic, or religious reasons by Nazi Germany or 14 any other Axis regime or as an heir of such victim which is 15 cxcmpt from statc incomc tax as providcd described in section 16 422.7, subsection 35, Code 2018, shall not be considered as 17 income or an asset for determining the eligibility for state or 18 local government benefit or entitlement programs. The proceeds 19 are not subject to recoupment for the receipt of governmental 20 benefits or entitlements, and liens, except liens for child 21 support, are not enforceable against these sums for any reason. 22 Sec. 7. Section 422.3, subsection 5, Code 2018, is amended 23 to read as follows: 24 5. -Internal Revenue Code" means the Internal Revenue Code 25 of 1954, prior to the date of its redesignation as the Internal 26 Revenue Code of 1986 by the Tax Reform Act of 1986, or means 27 the Internal Revenue Code of 1986, as amended and in effect 28 on January 1, 2015. This dcfinition shall not be construed 29 30 31 32 Sec. 8. Section 422.4, subsection 1, paragraphs 33 Code 2018, are amended to read as follows: 34 b. "Cumulative inflation factor- means the product of the 35 annual inflation factor for the 1988 2022 calendar year and after the date specified in the preceding sentence, including b and c, LSB 5452XC (3) 87 -2- mm/jh Page 1? of 291 S.F. 1 all annual inflation factors for subsequent calendar years 2 as determined pursuant to this subsection. The cumulative 3 inflation factor applies to all tax years beginning on or after 4 January 1 of the calendar year for which the latest annual 5 inflation factor has been determined. 6 c. The annual inflation factor for the 1988 2022 calendar 7 year is one 8 Sec. 9. by striking 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 to Sec. read 16. defined hundred percent. Section 422.4, subsection 2, Code 2018, the subsection. 10. Section 422.4, subsection is amended 16, Code 2018, is amended as follows: The words -taxable income"" mean the net income as in section 422.7 minus the dcductions deduction allowed by section 422.9, if available, in the case of individuals; in the case of estates or trusts, the words "taxable income"" mean the taxable income (without a deduction for personal exemption) as computed for federal income tax purposes under the Internal Revenue Code, but with the adjustments specified in section 422.7 providcd in scction 422.9. Sec. 11. Section 422.5, subsection 1, paragraphs a, b, c, d, and e, Code 2018, are amended by striking the paragraphs and inserting in lieu thereof the following: a. On all taxable income from zero through twelve thousand dollars in the case of a married couple filing jointly, or from zero to six thousand dollars in the case of all other persons, five percent. b, On all taxable income exceeding twelve thousand dollars but not married dollars exceeding thirty thousand dollars in the case of a couple filing jointly, or exceeding six thousand but not exceeding fifteen thousand dollars in the case of all other persons, five and one-quarter percent. c. On all taxable income exceeding thirty thousand dollars but not exceeding sixty thousand dollars in the case of a LSB 5452XC (3) 87 -3- mm/jh Page fBf 291 S.F. 1 married couple filing jointly, or exceeding fifteen thousand 2 dollars but not exceeding thirty thousand dollars in the case 3 of all other persons, five and one-half percent. 4 d. On all taxable income exceeding sixty thousand dollars 5 but not exceeding one hundred fifty thousand dollars in the 6 case of a married couple filing jointly, or exceeding thirty 7 thousand dollars but not exceeding seventy-five thousand 8 dollars in the case of all other persons, six percent. 9 e. On all taxable income exceeding one hundred fifty 10 thousand dollars in the case of a married couple filing 11 jointly, or exceeding seventy-five thousand dollars in the case 12 of all other persons, the following: 13 (1) Six and six -tenths percent for tax years beginning 14 during the 2019 calendar year. 15 (2) Six and one-half percent for tax years beginning during 16 the 2020 calendar year. 17 (3) Six and four -tenths percent for tax years beginning 18 during the 2021 calendar year. 19 (4) Six and three -tenths percent for tax years beginning on 20 or after January 1, 2022. 21 Sec. 12. Section 422.5, subsection 1, paragraphs f, g, h, 22 and i, Code 2018, are amended by striking the paragraphs. 23 Sec. 13. Section 422.5, subsection 1, paragraph j, Code 24 2018, is amended to read as follows: 25 j. (1) The tax imposed upon the taxable income of a 26 nonresident shall be computed by reducing the amount determined 27 pursuant to paragraphs ''d3'' through s'.19'' by the amounts of 28 nonrefundable credits under this division and by multiplying 29 this resulting amount by a fraction of which the nonresident's 30 net income allocated to Iowa, as determined in section 31 422.8, subsection 2, paragraph 'a is the numerator and the 32 nonresident's total net income computed under section 422.7 is 33 the denominator. This provision also applies to individuals 34 who are residents of Iowa for less than the entire tax year. 35 (2) (a) The tax imposed upon the taxable income of a LSB 5452XC (3) 87 —4— mm/jh Page 1141138f 291 S.F. 1 resident shareholder in an S corporation or of an estate 2 or trust with a situs in Iowa that is a shareholder in an S 3 corporation, which S corporation has in effect for the tax 4 year an election under subchapter S of the Internal Revenue 5 Code and carries on business within and without the state, 6 may be computed by reducing the amount determined pursuant to 7 paragraphs -a- through "e" by the amounts of nonrefundable 8 credits under this division and by multiplying this resulting 9 amount by a fraction of which the resident's or estate's 10 or trust's net income allocated to Iowa, as determined in 11 section 422.8, subsection 2, paragraph b"", is the numerator 12 and the resident's or estate's or trust's total net income 13 computed under section 422.7 is the denominator. If a resident 14 shareholder, or an estate or trust with a situs in Iowa 15 that is a shareholder, has elected to take advantage of this 16 subparagraph (2), and for the next tax year elects not to take 17 advantage of this subparagraph, the resident or estate or 18 trust shareholder shall not reelect to take advantage of this 19 subparagraph for the three tax years immediately following the 20 first tax year for which the shareholder elected not to take 21 advantage of this subparagraph, unless the director consents to 22 the reelection. This subparagraph also applies to individuals 23 who are residents of Iowa for less than the entire tax year. 24 (b) This subparagraph (2) shall not affect the amount of 25 the taxpayer's checkoffs under this division, the credits from 26 tax provided under this division, and the allocation of these 27 credits between spouses if the taxpayers filed separate returns 28 or scparatcly on combincd rcturns. 29 Sec. 14. Section 422.5, subsection 2, Code 2018, is amended 30 by striking the subsection. 31 Sec. 15. Section 422.5, subsections 3 and 3B, Code 2018, are 32 amended to read as follows: 33 3. a. The tax shall not be imposed on a resident or 34 nonresident whose net income, as defined in section 422.7, is 35 thirteen thousand five hundred dollars or less in the case LSB 5452XC (3) 87 -5- mm/jh Page f4ef 291 S.F. 1 of married persons filing jointly or filing separately on a 2 combincd rcturn, heads of household, and surviving spouses or 3 nine thousand dollars or less in the case of all other persons; 4 but in the event that the payment of tax under this division 5 would reduce the net income to less than thirteen thousand five 6 hundred dollars or nine thousand dollars as applicable, then 7 the tax shall be reduced to that amount which would result 8 in allowing the taxpayer to retain a net income of thirteen 9 thousand five hundred dollars or nine thousand dollars as 10 applicable. The preceding sentence does not apply to estates 11 or trusts. For the purpose of this subsection, the entire net 12 income, including any part of the net income not allocated 13 to Iowa, shall be taken into account. For purposes of this 14 subsection, net income includes all amounts of pensions or 15 other retirement income, except for military retirement pay 16 excluded under section 422.7, subsection 31A, paragraph "a" 17 or section 422.7, subsection 31B, paragraph "a"", received from 18 any source which is not taxable under this division as a result 19 of the government pension exclusions in section 422.7, or any 20 other state law. If the combined net income of a husband and 21 wife exceeds thirteen thousand five hundred dollars, neither 22 of them shall receive the benefit of this subsection, and it 23 is immaterial whether they file a joint return or separate 24 returns. However, if a husband and wife file separate returns 25 and have a combined net income of thirteen thousand five 26 hundred dollars or less, neither spouse shall receive the 27 benefit of this paragraph, if one spouse has a net operating 28 loss and elects to carry back or carry forward the loss as 29 provided under the Internal Revenue Code or in section 422.9- 30 oub3cction 3. A person who is claimed as a dependent by 31 another person as defined in section 422.12 shall not receive 32 the benefit of this subsection if the person claiming the 33 dependent has net income exceeding thirteen thousand five 34 hundred dollars or nine thousand dollars as applicable or the 35 person claiming the dependent and the person's spouse have LSB 5452XC (3) 87 -6- mm/jh Page fief 291 S.F. 1 combined net income exceeding thirteen thousand five hundred 2 dollars or nine thousand dollars as applicable. 3 b. In lieu of the computation in subsection 1 or 2, or in 4 paragraph -a- of this subsection, if the married persons" , - 5 filing jointly or filing scparatcly on a combincd rcturn, 6 head of household's, or surviving spouse's net income exceeds 7 thirteen thousand five hundred dollars, the regular tax imposed 8 under this division shall be the lesser of the maximum state 9 individual income tax rate for the tax year times the portion 10 of the net income in excess of thirteen thousand five hundred 11 dollars or the regular tax liability computed without regard 12 to this sentence. Taxpayers electing to file separately shall 13 compute the alternate tax described in this paragraph using the 14 total net income of the husband and wife. The alternate tax 15 described in this paragraph does not apply if one spouse elects 16 to carry back or carry forward the loss as provided under the 17 Internal Revenue Code or in section 422.9, subsection 3. 18 3B. a, The tax shall not be imposed on a resident or 19 nonresident who is at least sixty-five years old on December 20 31 of the tax year and whose net income, as defined in section 21 422.7, is thirty-two thousand dollars or less in the case 22 of married persons filing jointly or filing scparatcly on a 23 combincd rcturn, heads of household, and surviving spouses or 24 twenty-four thousand dollars or less in the case of all other 25 persons; but in the event that the payment of tax under this 26 division would reduce the net income to less than thirty-two 27 thousand dollars or twenty-four thousand dollars as applicable, 28 then the tax shall be reduced to that amount which would result 29 in allowing the taxpayer to retain a net income of thirty-two 30 thousand dollars or twenty-four thousand dollars as applicable. 31 The preceding sentence does not apply to estates or trusts. 32 For the purpose of this subsection, the entire net income, 33 including any part of the net income not allocated to Iowa, 34 shall be taken into account. For purposes of this subsection, 35 net income includes all amounts of pensions or other retirement LSB 5452XC (3) 87 -7- mm/jh Page 1iBf 291 S.F. 1 income, except for military retirement pay excluded under 2 section 422.7, subsection 31A, paragraph '',3'', or section 422.7, 3 subsection 31B, paragraph ''43'', received from any source which is 4 not taxable under this division as a result of the government 5 pension exclusions in section 422.7, or any other state law. 6 If the combined net income of a husband and wife exceeds 7 thirty-two thousand dollars, neither of them shall receive the 8 benefit of this subsection, and it is immaterial whether they 9 file a joint return or separate returns. However, if a husband 10 and wife file separate returns and have a combined net income 11 of thirty-two thousand dollars or less, neither spouse shall 12 receive the benefit of this paragraph, if one spouse has a net 13 operating loss and elects to carry back or carry forward the 14 loss as provided under the Internal Revenue Code or in section 15 422.9, subscction 3. A person who is claimed as a dependent by 16 another person as defined in section 422.12 shall not receive 17 the benefit of this subsection if the person claiming the 18 dependent has net income exceeding thirty-two thousand dollars 19 or twenty-four thousand dollars as applicable or the person 20 claiming the dependent and the person's spouse have combined 21 net income exceeding thirty-two thousand dollars or twenty-four 22 thousand dollars as applicable. 23 b. In lieu of the computation in subsection 1,--2; or 3, if 24 the married persons',— filing jointly or filing separately on 25 a combincd rcturn, head of household's, or surviving spouse's 26 net income exceeds thirty-two thousand dollars, the regular tax 27 imposed under this division shall be the lesser of the maximum 28 state individual income tax rate for the tax year times the 29 portion of the net income in excess of thirty-two thousand 30 dollars or the regular tax liability computed without regard 31 to this sentence. Taxpayers electing to file separately shall 32 compute the alternate tax described in this paragraph using the 33 total net income of the husband and wife. The alternate tax 34 described in this paragraph does not apply if one spouse elects 35 to carry back or carry forward the loss as provided under the LSB 5452XC (3) 87 -8- mm/jh Page f4Bf 291 S.F. 1 Internal Revenue Code or in section 422.9, subsection 3. 2 c. This subsection applies even though one spouse has not 3 attained the age of sixty-five, if the other spouse is at least 4 sixty-five at the end of the tax year. 5 Sec. 16. Section 422.5, subsection 6, Code 2018, is amended 6 by striking the subsection and inserting in lieu thereof the 7 following: 8 6. Upon determination of the latest cumulative inflation 9 factor, the director shall reduce each tax rate in subsection 10 1, paragraphs -a- through "d"", and paragraph -e-, subparagraph 11 (4), by the same percentage that the latest cumulative 12 inflation factor exceeds one hundred percent, shall round off 13 the resulting rate to the nearest one-hundredth of one percent, 14 and shall incorporate the result into the income tax forms and 15 instructions for each tax year. 16 Sec. 17. Section 422.7, unnumbered paragraph 1, Code 2018, 17 is amended to read as follows: 18 The term "net income- means the - 19 the net operating loss deduction taxable income as properly 20 computed for federal income tax purposes under section 63 the 21 Internal Revenue Code, with the following adjustments: 22 Sec. 18. Section 422.7, Code 2018, is amended by adding the 23 following new subsections: 24 NEW SUBSECTION. 4. Add any federal net operating loss 25 deduction carried over from a taxable year beginning prior to 26 January 1, 2019. 27 NEW SUBSECTION. 6. a. For tax years beginning in the 2019 28 calendar year, subtract the amount of federal income taxes 29 paid during the tax year to the extent payment is for a tax 30 year beginning prior to January 1, 2019, and add any federal 31 income tax refunds received during the tax year to the extent 32 the federal income tax was deducted for a tax year beginning 33 prior to January 1, 2019. Where married persons who have filed 34 a joint federal income tax return file separately for state tax 35 purposes, such total shall be divided between them according LSB 5452XC (3) 87 -9- mm/jh Page 11)4ef 291 S.F. 1 to the portion of the total paid by each. Federal income taxes 2 paid for a tax year in which an Iowa return was not required to 3 be filed shall not be subtracted. 4 b. Notwithstanding any other provision of law to the 5 contrary, amounts subtracted or added pursuant to this 6 subsection shall not be included in the calculation of net 7 income for purposes of section 422.5, subsection 3 or 3B, or 8 section 422.13. 9 Sec. 19. Section 422.7, subsection 12, paragraph a, 10 unnumbered paragraph 1, Code 2018, is amended to read as 11 follows: 12 For tax years beginning prior to January 1, 2022, if the 13 adjustcd groao federal taxable income includes income or loss 14 from a small business operated by the taxpayer, an additional 15 deduction shall be allowed in computing the income or loss from 16 the small business if the small business hired for employment 17 in the state during its annual accounting period ending with or 18 during the taxpayer's tax year any of the following: 19 Sec. 20. Section 422.7, subsection 12A, paragraph a, 20 unnumbered paragraph 1, Code 2018, is amended to read as 21 follows: 22 For tax years beginning prior to January 1, 2022, if the 23 adjustcd gro3s federal taxable income includes income or loss 24 from a business operated by the taxpayer, and if the business 25 does not qualify for the adjustment under subsection 12, an 26 additional deduction shall be allowed in computing the income 27 or loss from the business if the business hired for employment 28 in the state during its annual accounting period ending with or 29 during the taxpayer's tax year either of the following: 30 Sec. 21. Section 422.7, subsection 13, Code 2018, is amended 31 by striking the subsection and inserting in lieu thereof the 32 following: 33 13. Subtract, to the extent included, the amount of social 34 security benefits taxable under section 86 of the Internal 35 Revenue Code. LSB 5452XC (3) 87 -10- mm/jh Page144788f 291 S.F. 1 Sec. 22. Section 422.7, Code 2018, is amended by adding the 2 following new subsections: 3 NEW SUBSECTION. 18. Add, to the extent deducted for federal 4 tax purposes, charitable contributions under section 170 of 5 the Internal Revenue Code to the extent such contribution was 6 made to an organization for the purpose of deposit in the Iowa 7 education savings plan trust established in chapter 12D, and 8 the taxpayer designated that any part of the contribution be 9 used for the direct benefit of any dependent of the taxpayer or 10 any other single beneficiary designated by the taxpayer. 11 NEW SUBSECTION. 19. a. Subtract, to the extent included, 12 income resulting from the payment by an employer of the 13 taxpayer, whether paid to the taxpayer or to a lender, of 14 principal or interest on any qualified education loan incurred 15 by the taxpayer. 16 b. If the taxpayer has a deduction in computing federal 17 taxable income under section 221 of the Internal Revenue Code 18 for interest on a qualified education loan, the taxpayer shall 19 recompute for purposes of this subsection the amount of the 20 deduction under paragraph "a " by not subtracting any amount of 21 income resulting from the employer's payment of interest on a 22 qualified education loan that was also deducted by the taxpayer 23 under section 221 of the Internal Revenue Code. 24 c. For purposes of this subsection, qualified education 25 loan"" means the same as defined in section 221 of the Internal 26 Revenue Code. 27 Sec. 23. Section 422.7, subsection 31, Code 2018, is amended 28 to read as follows: 29 31. For a person who is disabled, or is fifty-five years of 30 age or older, or is the surviving spouse of an individual or 31 a survivor having an insurable interest in an individual who 32 would have qualified for the exemption under this subsection 33 for the tax year, subtract, to the extent included, the 34 total amount of a governmental or other pension or retirement 35 pay, including, but not limited to, defined benefit or -11- LSB 5452XC (3) 87 mm/jh Page31-48f 291 S.F. 1 defined contribution plans, annuities, individual retirement 2 accounts, plans maintained or contributed to by an employer, 3 or maintained or contributed to by a self-employed person as 4 an employer, and deferred compensation plans or any earnings 5 attributable to the deferred compensation plans, up to a 6 maximum of six ten thousand dollars for a person, other than a 7 husband or wife, who files a separate state income tax return 8 and up to a maximum of twelve twenty thousand dollars for a 9 husband and wife who file a joint state income tax return. 10 However, a surviving spouse who is not disabled or fifty-five 11 years of age or older can only exclude the amount of pension or 12 retirement pay received as a result of the death of the other 13 spouse. A husband and wife filing separate state income tax 14 returns or separately on a combined state return are allowed 15 a combined maximum exclusion under this subsection of up to 16 twelve twenty thousand dollars. The twelve twenty thousand 17 dollar exclusion shall be allocated to the husband or wife 18 in the proportion that each spouse's respective pension and 19 retirement pay received bears to total combined pension and 20 retirement pay received. 21 Sec. 24. Section 422.7, subsection 41, Code 2018, is amended 22 by adding the following new paragraph: 23 NEW PARAGRAPH. Oe. Add, to the extent deducted for 24 federal tax purposes, interest, taxes, and other miscellaneous 25 expenses to the extent such amounts are eligible home costs 26 in connection with a qualified home purchase that were paid 27 or reimbursed from funds in a first-time homebuyer savings 28 account. 29 Sec. 25. Section 422.7, subsection 44, paragraph a, 30 unnumbered paragraph 1, Code 2018, is amended to read as 31 follows: 32 -€ For tax years beginning before January 1, 2022, if the 33 taxpayer, while living, donates one or more of the taxpayer's 34 human organs to another human being for immediate human organ 35 transplantation during the tax year, subtract, to the extent -12- LSB 5452XC (3) 87 mm/jh Page44938f 291 S.F. 1 not otherwise excluded, the following unreimbursed expenses 2 incurred by the taxpayer and related to the taxpayer's organ 3 donation: 4 Sec. 26. Section 422.7, subsection 47, Code 2018, is amended 5 to read as follows: 6 47. Subtract, to the extent not otherwise deducted in 7 computing adjustcd gross federal taxable income, the amounts 8 paid by the taxpayer to the department of veterans affairs for 9 the purpose of providing grants under the injured veterans 10 grant program established in section 35A.14. Amounts 11 subtracted under this subsection shall not be used by the 12 taxpayer in computing the amount of charitable contributions as 13 defined by section 170 of the Internal Revenue Code. 14 Sec. 27. Section 422.7, Code 2018, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION. 51. The additional first-year depreciation 17 allowance authorized in section 168(k) of the Internal Revenue 18 Code does not apply in computing net income for state tax 19 purposes. If the taxpayer has taken the additional first-year 20 depreciation allowance for purposes of computing federal 21 taxable income, then the taxpayer shall make the following 22 adjustments to federal taxable income when computing net income 23 for state tax purposes: 24 a. Add the total amount of depreciation taken under section 25 168(k) of the Internal Revenue Code for the tax year. 26 b. Subtract the amount of depreciation allowable under the 27 modified accelerated cost recovery system described in section 28 168 of the Internal Revenue Code and calculated without regard 29 to section 168(k). 30 c. Any other adjustments to gains or losses necessary to 31 reflect the adjustments made in paragraphs ''43'' a„ and -b'. The 32 director shall adopt rules for the administration of this 33 paragraph. 34 Sec. 28. Section 422.7, subsections 3, 7, 8, 9, 10, 11, 14, 35 15, 16, 20, 21, 22, 23, 24, 25, 26, 29, 30, 35, 36, 37, 39, 39A, LSB 5452XC (3) 87 -13- mm/jh Page' ti f 291 S.F. 1 39B, 40, 43, 45, 49, 53, 55, 56, 57, and 58, Code 2018, are 2 amended by striking the subsections. 3 Sec. 29. Section 422.8, subsection 4, Code 2018, is amended 4 by striking the subsection. 5 Sec. 30. Section 422.9, Code 2018, is amended by striking 6 the section and inserting in lieu thereof the following: 7 422.9 Iowa net operating loss incurred prior to January 1, 8 2019. 9 Any Iowa net operating loss carried over from a taxable year 10 beginning prior to January 1, 2019, may be deducted as provided 11 in section 422.9, subsection 3, Code 2018. 12 Sec. 31. Section 422.11S, subsection 4, Code 2018, is 13 amended to read as follows: 14 4. Married taxpayers who file separate returns or file 15 ocparatcly on a combincd rcturn form must determine the tax 16 credit under subsection 1 based upon their combined net income 17 and allocate the total credit amount to each spouse in the 18 proportion that each spouse's respective net income bears to 19 the total combined net income. Nonresidents or part -year 20 residents of Iowa must determine their tax credit in the ratio 21 of their Iowa source net income to their all source net income. 22 Nonresidents or part -year residents who are married and elect 23 to file separate returns or to file separately on a combined 24 return form must allocate the tax credit between the spouses 25 in the ratio of each spouse's Iowa source net income to the 26 combined Iowa source net income of the taxpayers. 27 Sec. 32. Section 422.12B, subsection 2, Code 2018, is 28 amended to read as follows: 29 2. Married taxpayers electing to file separate returns e.- 30 filing separately on a combined rcturn may avail themselves 31 of the earned income credit by allocating the earned income 32 credit to each spouse in the proportion that each spouse's 33 respective earned income bears to the total combined earned 34 income. Taxpayers affected by the allocation provisions of 35 section 422.8 shall be permitted a deduction for the credit -14- LSB 5452XC (3) 87 mm/jh Page1116138f 291 S.F. 1 only in the amount fairly and equitably allocable to Iowa under 2 rules prescribed by the director. 3 Sec. 33. Section 422.12C, subsection 4, Code 2018, is 4 amended to read as follows: 5 4. Married taxpayers who have filed joint federal returns 6 electing to file separate returns or `o file s-eparately on a 7 combincd rcturn form must determine the child and dependent 8 care credit under subsection 1 or the early childhood 9 development tax credit under subsection 2 based upon their 10 combined net income and allocate the total credit amount to 11 each spouse in the proportion that each spouse's respective net 12 income bears to the total combined net income. Nonresidents 13 or part -year residents of Iowa must determine their Iowa child 14 and dependent care credit in the ratio of their Iowa source 15 net income to their all source net income. Nonresidents or 16 part -year residents who are married and elect to file separate 17 returns or to file scparately on a combincd return form must 18 allocate the Iowa child and dependent care credit between the 19 spouses in the ratio of each spouse's Iowa source net income to 20 the combined Iowa source net income of the taxpayers. 21 Sec. 34. Section 422.13, subsection 1, paragraph c, Code 22 2018, is amended by striking the paragraph. 23 Sec. 35. Section 422.16, subsection 1, paragraph f, Code 24 2018, is amended by striking the paragraph. 25 Sec. 36. Section 422.21, subsections 2, 5, and 7, Code 2018, 26 are amended to read as follows: 27 2. An individual in the armed forces of the United States 28 serving in an area designated by the president of the United 29 States or the United States Congress as a combat zone or as a 30 qualified hazardous duty area, or deployed outside the United 31 States away from the individual's permanent duty station while 32 participating in an operation designated by the United States 33 secretary of defense as a contingency operation as defined 34 in 10 U.S.C. §101(a)(13), or which became such a contingency 35 operation by the operation of law, or an individual serving in LSB 5452XC (3) 87 -15- mm/jh Pagelt8f 291 S.F. 1 support of those forces, is allowed the same additional time 2 period after leaving the combat zone or the qualified hazardous 3 duty area, or ceasing to participate in such contingency 4 operation, or after a period of continuous hospitalization, to 5 file a state income tax return or perform other acts related 6 to the department, as would constitute timely filing of the 7 return or timely performance of other acts described in section 8 7508(a) of the Internal Revenue Code. An individual on active 9 duty federal military service in the armed forces, armed forces 10 military reserve, or national guard who is deployed outside 11 the United States in other than a combat zone, qualified 12 hazardous duty area, or contingency operation is allowed the 13 same additional period of time described in section 7508(a) 14 of the Internal Revenue Code to file a state income tax 15 return or perform other acts related to the department. For 16 the purposes of this subsection, "other acts related to the 17 department- includes filing claims for refund for any tax 18 administered by the department, making tax payments other than 19 withholding payments, filing appeals on the tax matters, filing 20 other tax returns, and performing other acts described in the 21 department's rules. The additional time period allowed applies 22 to the spouse of the individual described in this subsection 23 to the extent the spouse files jointly or separately on the 24 combined return form with the individual or when the spouse 25 is a party with the individual to any matter for which the 26 additional time period is allowed. 27 5. The director shall determine for the 1989 2022 and each 28 subsequent calendar year the annual and cumulative inflation 29 factors for each calendar year to be applied to tax years 30 beginning on or after January 1 of that calendar year. The 31 director shall compute the new dollar amount3 tax rates 32 as specified to be adjusted in section 422.5 by the latest 33 cumulative inflation factor and round off the result to the 34 nearest one doll r one-hundredth of one percent. The annual 35 and cumulative inflation factors determined by the director LSB 5452XC (3) 87 -16- mm/jh Page46338f 291 S.F. 1 are not rules as defined in section 17A.2, subsection 11. The 2 44ree-tors z dctcrminc for thc 1990 calendar ycar and each 34 d -ed -u tion factors to bc applied to tax years beginning on or 5 aftcr January 1 of that calendar ycar. The director shall 6 - -. - 7 specified in section 422.9, subsection 1, by thc latest 8 cumulative standard dcduction factor and round off thc result 9 10 deduction factors dctcrmincd by the dir 11 defined in section 17A.2, subsection 11. 12 7. If married taxpayers file a joint return or file 13 separately on a combined return in accordance with rules 14 prescribed by the director, both spouses are jointly and 15 severally liable for the total tax due on the return, except 16 when one spouse is considered to be an innocent spouse under 17 criteria established pursuant to section 6015 of the Internal 18 Revenue Code. 19 Sec. 37. Section 422.32, subsection 1, paragraph h, Code 20 2018, is amended to read as follows: 21 h. "Internal Revenue Code- means the Internal Revenue Code 22 of 1954, prior to the date of its redesignation as the Internal 23 Revenue Code of 1986 by the Tax Reform Act of 1986, or means 24 the Internal Revenue Code of 1986, as amended and in effect 25 on January 1, 2015. This dcfinition shall not bc construed 26 27 28 29 Sec. 38. Section 422.33, subsection 1, paragraphs a, b, c, 30 and d, Code 2018, are amended to read as follows: 31 a. On the first twenty-five thousand dollars of taxable 32 income, or any part thereof, the rate of six percent for tax 33 years beginning prior to January 1, 2021, and the rate of 34 five and one-half percent for tax years beginning on or after 35 January 1, 2021. after the date specified in the preceding sentence, including LSB 5452XC (3) 87 -17- mm/jh Page' of 291 S.F. 1 b. On taxable income between twenty-five thousand dollars 2 and one hundred thousand dollars or any part thereof, the rate 3 of eight percent for tax years beginning prior to January 1, 4 2021, and the rate of five and one-half percent for tax years 5 beginning on or after January 1, 2021. 6 c. On taxable income between one hundred thousand dollars 7 and two hundred fifty thousand dollars or any part thereof, the 8 rate of ten percent for tax years beginning prior to January 1, 9 2020, the rate of eight percent for tax years beginning during 10 the 2020 calendar year, and the rate of five and one-half 11 percent for tax years beginning on or after January 1, 2021. 12 d. On taxable income of two hundred fifty thousand dollars 13 or more, the rate of twclvc ten percent for tax years beginning 14 on or after January 1, 2019, but prior to January 1, 2021, the 15 rate of eight percent for tax years beginning during the 2021 16 calendar year, and the rate of seven percent for tax years 17 beginning on or after January 1, 2022. 18 Sec. 39. Section 422.33, subsection 4, Code 2018, is amended 19 by striking the subsection. 20 Sec. 40. Section 422.35, unnumbered paragraph 1, Code 2018, 21 is amended to read as follows: 22 The term -net income- means the taxable income bcforc the 23 nct operating loss dcduction, as properly computed for federal 24 income tax purposes under the Internal Revenue Code, with the 25 following adjustments: 26 Sec. 41. Section 422.35, subsection 4, Code 2018, is amended 27 to read as follows: 28 4. Subtract fifty percent of the federal income taxes paid 29 or accrued, as the case may be, during the tax year to the 30 extent payment is for a tax year beginning prior to January 1, 31 2019, adjusted by any federal income tax refunds; and add the 32 Iowa income tax dcductcd in computing said taxablc incomc to 33 the extent the tax was deducted for a tax year beginning prior 34 to January 1, 2019. 35 Sec. 42. Section 422.35, subsection 6, paragraph a, -18- LSB 5452XC (3) 87 mm/jh Pageli36538f 291 S.F. 1 unnumbered paragraph 1, Code 2018, is amended to read as 2 follows: 3 For tax years beginning before January 1, 2022, if the 4 taxpayer is a small business corporation, subtract an amount 5 equal to sixty-five percent of the wages paid to individuals, 6 but not to exceed twenty thousand dollars per individual, named 7 in subparagraphs (1), (2), and (3) who were hired for the first 8 time by the taxpayer during the tax year for work done in this 9 state: 10 Sec. 43. Section 422.35, subsection 6A, paragraph a, 11 unnumbered paragraph 1, Code 2018, is amended to read as 12 follows: 13 1-# For tax years beginning prior to January 1, 2022, if the 14 taxpayer is a business corporation and does not qualify for 15 the adjustment under subsection 6, subtract an amount equal to 16 sixty-five percent of the wages paid to individuals, but shall 17 not exceed twenty thousand dollars per individual, named in 18 subparagraphs (1) and (2) who were hired for the first time by 19 the taxpayer during the tax year for work done in this state: 20 Sec. 44. Section 422.35, subsection 11, Code 2018, is 21 amended by striking the subsection and inserting in lieu 22 thereof the following: 23 11. a, Add any federal net operating loss deduction carried 24 over from a taxable year beginning prior to January 1, 2019. 25 b, Any Iowa net operating loss carried over from a taxable 26 year beginning prior to January 1, 2019, may be deducted as 27 provided in section 422.35, subsection 11, Code 2018. 28 Sec. 45. Section 422.35, Code 2018, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION. 23. The additional first-year depreciation 31 allowance authorized in section 168(k) of the Internal Revenue 32 Code does not apply in computing net income for state tax 33 purposes. If the taxpayer has taken the additional first-year 34 depreciation allowance for purposes of computing federal 35 taxable income, then the taxpayer shall make the following LSB 5452XC (3) 87 -19- mm/jh Pageli)8f 291 S.F. 1 adjustments to federal taxable income when computing net income 2 for state tax purposes: 3 a. Add the total amount of depreciation taken under section 4 168(k) of the Internal Revenue Code for the tax year. 5 b, Subtract the amount of depreciation allowable under the 6 modified accelerated cost recovery system described in section 7 168 of the Internal Revenue Code and calculated without regard 8 to section 168(k). 9 c. Any other adjustments to gains or losses necessary to 10 reflect the adjustments made in paragraphs "a"" and -b". The 11 director shall adopt rules for the administration of this 12 paragraph. 13 Sec. 46. Section 422.35, subsections 3, 5, 7, 8, 10, 16, 14 17, 18, 19, 19A, 19B, 20, 22, and 24, Code 2018, are amended by 15 striking the subsections. 16 Sec. 47. Section 541B.3, subsection 1, paragraph b, Code 17 2018, is amended to read as follows: 18 b. A married couple electing to file a joint Iowa individual 19 income tax return may establish a joint first-time homebuyer 20 savings account. Married taxpayers electing to file separate 21 tax returns or scparatcly on a combincd tax rcturn for Iowa tax 22 purposes shall not establish or maintain a joint first-time 23 homebuyer savings account. 24 Sec. 48. Section 541B.6, Code 2018, is amended to read as 25 follows: 26 541B.6 Tax considerations. 27 The state income tax treatment of a first-time homebuyer 28 savings account shall be as provided in section 422.7, 29 subsection 41, and scction 422.9, subscction 2, paragraph k". 30 Sec. 49. EFFECTIVE DATE. This division of this Act takes 31 effect January 1, 2019. 32 Sec. 50. APPLICABILITY. This division of this Act applies 33 to tax years beginning on or after January 1, 2019. 34 DIVISION III 35 TAX CREDITS LSB 5452XC (3) 87 -20- mm/jh Page2'P8f 291 S.F. 1 Sec. 51. Section 8.57E, subsection 2, Code 2018, is amended 2 to read as follows: 3 2. Moneys in the taxpayers trust fund shall only be used 4 pursuant to appropriations or transfers made by the general 5 assembly for tax relief. During each fiscal year beginning on 6 or after July 1, 2014, but before June 30, 2020, in which the 7 balance of the taxpayers trust fund equals or exceeds thirty 8 million dollars, there is transferred from the taxpayers trust 9 fund to the Iowa taxpayers trust fund tax credit fund created 10 in section 422.11E, the entire balance of the taxpayers trust 11 fund to be used for the Iowa taxpayers trust fund tax credit in 12 accordance with section 422.11E, subsection 5. 13 Sec. 52. Section 15.119, subsection 2, paragraph a, Code 14 2018, is amended by striking the paragraph and inserting in 15 lieu thereof the following: 16 a, The high quality jobs program administered pursuant 17 to sections 15.326 through 15.336. In allocating tax 18 credits pursuant to this subsection, the authority shall not 19 allocate more than eighty million dollars for purposes of this 20 paragraph. 21 Sec. 53. Section 15.119, subsection 2, paragraphs d, e, and 22 g, Code 2018, are amended to read as follows: 23 d. The tax credits for investments in qualifying businesses 24 issued pursuant to section 15E.43. In allocating tax credits 25 pursuant to this subsection, the authority shall not allocate 26 two more than four million dollars for purposes of this 27 paragraph, --- - - -- - - 28 awardcd will be lcss than that amount. 29 e, The tax credits for investments in an innovation fund 30 pursuant to section 15E.52. In allocating tax credits pursuant 31 to this subsection in a fiscal year in which the allocation for 32 purposes of paragraph "d"" does not exceed two million dollars, 33 the authority shall not allocate more than eight million 34 dollars for purposes of this paragraph, unlcss the authority 35 -21- LSB 5452XC (3) 87 mm/jh Page21- f 291 S.F. 1 amount. In allocating tax credits pursuant to this subsection 2 in a fiscal year in which the allocation for purposes of 3 paragraph -d"" exceeds two million dollars, the authority shall 4 not allocate for purposes of this paragraph an amount that 5 exceeds an amount equal to the difference of eight million 6 dollars less the amount that the allocation for purposes of 7 paragraph "d"" exceeds two million dollars for the same fiscal 8 year. 9 g. The workforce housing tax incentives program administered 10 pursuant to sections 15.351 through 15.356. In allocating 11 tax credits pursuant to this subsection, the authority shall 12 not allocate more than twcnty twenty-two million dollars for 13 purposes of this paragraph. Of the moneys allocated under this 14 paragraph, fivc seven million dollars shall be reserved for 15 allocation to qualified housing projects in small cities, as 16 defined in section 15.352, that are registered on or after July 17 1, 2017. 18 Sec. 54. Section 15.329, subsection 1, paragraph f, Code 19 2018, is amended to read as follows: 20 f. The business shall not be a retail business or a business 21 where entrance is limited by a cover charge or membership 22 requirement, or a web search portal business as defined in 23 section 423.3, subsection 93, or a data center business as 24 defined in section 423.3, subsection 95, unless such web search 25 portal business or data center business had a physical presence 26 in this state prior to July 1, 2018. 27 Sec. 55. Section 15.331A, subsection 1, Code 2018, is 28 amended to read as follows: 29 1. The eligible business shall be entitled to a refund 30 of the sales and use taxes paid under chapter 423 for gas, 31 electricity, water, or sewer utility services, goods, wares, or 32 merchandise, or on services rendered, furnished, or performed 33 to or for a contractor or subcontractor and used in the 34 fulfillment of a written contract relating to the construction 35 or equipping of a facility that is part of a project of the LSB 5452XC (3) 87 -22- mm/jh Page21?8f 291 S.F. 1 eligible business. Taxes attributable to intangible property 2 and furniture and furnishings shall not be refunded. However, 3 .. 4 attributable to racks, shelving, and conveyor equipment to bc 5 used in a warchousc or distribution ccntcr subject to scction 6 15.331C. 7 Sec. 56. Section 15.331C, Code 2018, is amended to read as 8 follows: 9 15.331C Corporate tax credit for certain sales taxes paid by 10 third -party developer. 11 1. An eligible business may claim a corporate tax credit 12 in an amount equal to the sales and use taxes paid by a 13 third -party developer under chapter 423 for gas, electricity, 14 water, or sewer utility services, goods, wares, or merchandise, 15 or on services rendered, furnished, or performed to or for a 16 contractor or subcontractor and used in the fulfillment of a 17 written contract relating to the construction or equipping of 18 a facility of the eligible business. Taxes attributable to 19 intangible property and furniture and furnishings shall not 20 be included, but taxcs attributable to racks, shelving, and 21 - .. 22 center shall bc included. Any credit in excess of the tax 23 liability for the tax year may be credited to the tax liability 24 for the following seven years or until depleted, whichever 25 occurs earlier. An eligible business may elect to receive a 26 refund of all or a portion of an unused tax credit. 27 2. A third -party developer shall state under oath, on 28 forms provided by the department of revenue, the amount of 29 taxes paid as described in subsection 1 and shall submit such 30 forms to the department of revenue. The taxes paid Shall bc 31- 32 to racks, shelving, and conveyor equipment to be used in a 33 . --_.-- _ -- - After receiving the form 34 from the third -party developer, the department of revenue shall 35 issue a tax credit certificate to the eligible business equal LSB 5452XC (3) 87 -23- mm/jh Page2fBf 291 S.F. 1 to the sales and use taxes paid by a third -party developer 2 under chapter 423 for gas, electricity, water, or sewer 3 utility services, goods, wares, or merchandise, or on services 4 rendered, furnished, or performed to or for a contractor or 5 subcontractor and used in the fulfillment of a written contract 6 relating to the construction or equipping of a facility. 7 - - _ - alio issue a tax credit 8-- 9 and attributable to racks, shelving, and conveyor equipment to 1011 combined total amount of tax refunds under Section 15.331A for 12 taxcs attributable to racks, shelving, and conveyor cquipmcnt 13 14 15 taxcs paid and attributable to racks, shelving, and conveyor 16 - -- 17 shall not cxcccd five hundred thousand dollars in a fiscal 18 year. If an applicant for a tax crcdit ccrtificatc docs not 19certificate for the taxes paid and attributable 20 to racks, shelving, and conveyor cquipmcnt to be used in a 21 -• - -• ... 22 considered in succeeding fiscal years. The eligible business 23 shall not claim a tax credit under this section unless a tax 24 credit certificate issued by the department of revenue is 25 included with the taxpayer's tax return for the tax year for 26 which the tax credit is claimed. A tax credit certificate 27 shall contain the eligible business's name, address, tax 28 identification number, the amount of the tax credit, and other 29 information deemed necessary by the department of revenue. 30 Sec. 57. Section 15.335, subsection 7, paragraph b, Code 31 2018, is amended by striking the paragraph and inserting in 32 lieu thereof the following: 33 b. For purposes of this section, "Internal Revenue Code"" 34 means the same as defined in section 422.3. 35 Sec. 58. Section 15.335, subsection 8, Code 2018, is amended 3 issued by the department of revenue for the -24- LSB 5452XC (3) 87 mm/jh Page211613Bf 291 S.F. 1 by striking the subsection and inserting in lieu thereof the 2 following: 3 8. Any tax credit in excess of the taxpayer's liability for 4 the tax year is not refundable and may not be credited to the 5 tax liability for any other year. 6 Sec. 59. Section 16.80, subsection 5, paragraphs a and b, 7 Code 2018, are amended to read as follows: 8 a, Except as provided in paragraph "b", the tax credit shall 9 equal fivc seven percent of the amount paid to the taxpayer 10 under the agreement. 11 b. The tax credit shall equal fifteen seventeen percent 12 of the amount paid to the taxpayer from crops or animals sold 13 under an agreement in which the payment is exclusively made 14 from the sale of crops or animals. 15 Sec. 60. Section 16.80, subsection 10, Code 2018, is amended 16 to read as follows: 17 10. The amount of tax credit certificates that may be issued 18 pursuant to this section shall not exceed oix eight million 19 dollars in any fiscal year. The authority shall issue the tax 20 credit certificates on a first-come, first-served basis. 21 Sec. 61. NEW SECTION. 260G.8 Future repeal. 22 This chapter is repealed effective July 1, 2025. 23 Sec. 62. Section 403.19A, subsection 3, paragraph c, 24 subparagraph (2), Code 2018, is amended to read as follows: 25 (2) The pilot project city and the economic development 26 authority shall not enter into a withholding agreement after 27 June 30, 2018 2019. 28 Sec. 63. Section 404A.4, subsection 1, paragraph a, Code 29 2018, is amended to read as follows: 30 a. Except as provided in subsections 2 and 3, the authority 31 shall not award in any one fiscal year an amount of tax credits 32 provided in section 404A.2 in excess of forty fivc thirty-five 33 million dollars. 34 Sec. 64. Section 404A.4, subsections 2 and 3, Code 2018, are 35 amended by striking the subsections. LSB 5452XC (3) 87 -25- mm/jh Page2fBf 291 S.F. 1 Sec. 65. NEW SECTION. 404A.7 Future repeal. 2 This chapter is repealed effective July 1, 2025. 3 Sec. 66. Section 422.10, subsection 1, Code 2018, is amended 4 by adding the following new paragraph: 5 NEW PARAGRAPH. Oa. An individual shall only be eligible for 6 the credit provided in this section if the business conducting 7 the research meets all of the following requirements: 8 (1) (a) The business is engaged in the manufacturing, 9 life sciences, software engineering, or aviation and aerospace 10 industry. 11 (b) A person who is engaged in agricultural production 12 as defined in section 423.1, or who is a contractor, 13 subcontractor, builder, or a contractor -retailer that engages 14 in commercial and residential repair and installation, 15 including but not limited to heating or cooling installation 16 and repair, plumbing and pipe fitting, security system 17 installation, or electrical installation and repair, does not 18 qualify under subparagraph division (a) and is not eligible 19 for the credit. For purposes of this subparagraph division, 20 "contractor -retailer"" means a business that makes frequent 21 retail sales to the public or to other contractors and that 22 also engages in the performance of construction contracts. 23 (2) The business claims and is allowed a research credit 24 for such qualified research expenses under section 41 of the 25 Internal Revenue Code for the same taxable year as it is 26 claiming the credit provided in this section. 27 Sec. 67. Section 422.10, subsection 3, Code 2018, is amended 28 by adding the following new paragraph: 29 NEW PARAGRAPH. Oa. For purposes of this section, base 30 amount"" means the product of the fixed -based percentage times 31 the average annual gross receipts of the taxpayer for the four 32 taxable years preceding the taxable year for which the credit 33 is being determined, but in no event shall the base amount be 34 less than fifty percent of the qualified research expenses for 35 the credit year. LSB 5452XC (3) 87 -26- mm/jh Page2$Bf 291 S.F. 1 Sec. 68. Section 422.10, subsection 3, paragraph a, Code 2 2018, is amended to read as follows: 3 a. For purposes of this section, "basc amount", 'basic 4 research payment", and "qualified research expense" mean the 5 same as defined for the federal credit for increasing research 6 activities under section 41 of the Internal Revenue Code, 7 except that for the alternative simplified credit such amounts 8 are for research conducted within this state. 9 Sec. 69. Section 422.10, subsection 3, paragraph b, Code 10 2018, is amended by striking the paragraph. 11 Sec. 70. Section 422.11B, Code 2018, is amended to read as 12 follows: 13 422.11B Minimum tax credit. 14 1. a, Thcrc For tax years beginning before January 1, 2020, 15 there is allowed as a credit against the tax determined in 16 section 422.5, subsection 1, paragraphs "a through "j" for a 17 tax year an amount equal to the minimum tax credit for that tax 18 year. 19 b. The minimum tax credit for a tax year is the excess, if 20 any, of the net minimum tax imposed for all prior tax years 21 beginning on or after January 1, 1987, but before January 1, 22 2019, over the amount allowable as a credit under this section 23 for those prior tax years. 24 2. a. The allowable credit under subsection 1 for a 25 tax year beginning before January 1, 2019, shall not exceed 26 the excess, if any, of the tax determined in section 422.5, 27 subsection 1, paragraphs "a through "j"" over the state 28 alternative minimum tax as determined in section 422.5, 29 subsection 2, Code 2018. The allowable credit under subsection 30 1 for a tax year beginning in the 2019 calendar year shall not 31 exceed the tax determined under section 422.5, subsection 1. 32 b. The net minimum tax for a tax year is the excess, if 33 any, of the tax determined in section 422.5, subsection 2, 34 Code 2018, for the tax year over the tax determined in section 35 422.5, subsection 1, paragraphs 'athrough "j" for the tax LSB 5452XC (3) 87 -27- mm/jh Page2M43Bf 291 S.F. 1 year. 2 3. This section is repealed January 1, 2020, for tax years 3 beginning on or after January 1, 2020. 4 Sec. 71. Section 422.11E, Code 2018, is amended by adding 5 the following new subsection: 6 NEW SUBSECTION. 6. This section is repealed on January 1, 7 2020. 8 Sec. 72. Section 422.11S, subsection 6, paragraph a, Code 9 2018, is amended to read as follows: 10 a. "Eligible student"" means a student who is a member of a 11 household whose total annual income during the calendar year 12 before the student receives a tuition grant for purposes of 13 this section does not exceed an amount equal to thrcc four 14 times the most recently published federal poverty guidelines in 15 the federal register by the United States department of health 16 and human services. 17 Sec. 73. Section 422.11S, subsection 8, paragraph a, 18 subparagraph (2), Code 2018, is amended to read as follows: 19 (2) "Total approved tax credits"" means for the tax year 20 beginning in the 2006 calendar year, two million five hundred 21 thousand dollars, for the tax year beginning in the 2007 22 calendar year, five million dollars, for tax years beginning 23 on or after January 1, 2008, but before January 1, 2012, seven 24 million five hundred thousand dollars, for tax years beginning 25 on or after January 1, 2012, but before January 1, 2014, eight 26 million seven hundred fifty thousand dollars, and for tax years 27 beginning on or after January 1, 2014, but before January 1, 28 2019, twelve million dollars, and for tax years beginning on or 29 after January 1, 2019, thirteen million dollars. 30 Sec. 74. Section 422.12, subsection 2, paragraph b, Code 31 2018, is amended to read as follows: 32 b. A For tax years beginning before January 1, 2022, a 33 tuition credit equal to twenty-five percent of the first one 34 thousand dollars which the taxpayer has paid to others for each 35 dependent in grades kindergarten through twelve, for tuition LSB 5452XC (3) 87 -28- mm/jh Page2i33Bf 291 S.F. 1 and textbooks of each dependent in attending an elementary or 2 secondary school situated in Iowa, which school is accredited 3 or approved under section 256.11, which is not operated for 4 profit, and which adheres to the provisions of the federal 5 Civil Rights Act of 1964 and chapter 216. Notwithstanding 6 any other provision, all other credits allowed under this 7 subsection shall be deducted before the tuition credit under 8 this paragraph. The department, when conducting an audit of 9 a taxpayer's return, shall also audit the tuition tax credit 10 portion of the tax return. 11 Sec. 75. Section 422.12, subsection 2, paragraph c, 12 subparagraph (1), Code 2018, is amended to read as follows: 13 (1) A For tax years beginning before January 1, 2022, 14 a volunteer fire fighter and volunteer emergency medical 15 services personnel member credit equal to one hundred dollars 16 to compensate the taxpayer for the voluntary services if the 17 volunteer served for the entire tax year. A taxpayer who 18 is a paid employee of an emergency medical services program 19 or a fire department and who is also a volunteer emergency 20 medical services personnel member or volunteer fire fighter in 21 a city, county, or area governed by an agreement pursuant to 22 chapter 28E where the emergency medical services program or 23 fire department performs services, shall qualify for the credit 24 provided under this paragraph "c". 25 Sec. 76. Section 422.12, subsection 2, paragraph d, 26 subparagraph (1), Code 2018, is amended to read as follows: 27 (1) A For tax years beginning before January 1, 2022, a 28 reserve peace officer credit equal to one hundred dollars to 29 compensate the taxpayer for services as a reserve peace officer 30 if the reserve peace officer served for the entire tax year. 31 Sec. 77. Section 422.33, subsection 5, Code 2018, is amended 32 by adding the following new paragraph: 33 NEW PARAGRAPH. Oe. A corporation shall only be 34 eligible for the credit provided in this subsection if the 35 business conducting the research meets all of the following LSB 5452XC (3) 87 -29- mm/jh Page24)6VBf 291 S.F. 1 requirements: 2 (1) (a) The business is engaged in the manufacturing, 3 life sciences, software engineering, or aviation and aerospace 4 industry. 5 (b) A person who is engaged in agricultural production 6 as defined in section 423.1, or who is a contractor, 7 subcontractor, builder, or a contractor -retailer that engages 8 in commercial and residential repair and installation, 9 including but not limited to heating or cooling installation 10 and repair, plumbing and pipe fitting, security system 11 installation, or electrical installation and repair, does not 12 qualify under subparagraph division (a) and is not eligible 13 for the credit. For purposes of this subparagraph division, 14 -contractor-retailer"" means a business that makes frequent 15 retail sales to the public or to other contractors and that 16 also engages in the performance of construction contracts. 17 (2) The business claims and is allowed a research credit 18 for such qualified research expenses under section 41 of the 19 Internal Revenue Code for the same taxable year as it is 20 claiming the credit provided in this subsection. 21 Sec. 78. Section 422.33, subsection 5, paragraph e, Code 22 2018, is amended by adding the following new subparagraph: 23 NEW SUBPARAGRAPH. (01) For purposes of this section, -base 24 amount"" means the product of the fixed -based percentage times 25 the average annual gross receipts of the taxpayer for the four 26 taxable years preceding the taxable year for which the credit 27 is being determined, but in no event shall the base amount be 28 less than fifty percent of the qualified research expenses for 29 the credit year. 30 Sec. 79. Section 422.33, subsection 5, paragraph e, 31 subparagraph (1), Code 2018, is amended to read as follows: 32 (1) For purposes of this subsection, "base amount"", -basic 33 research payment"", and -qualified research expense"" mean the 34 same as defined for the federal credit for increasing research 35 activities under section 41 of the Internal Revenue Code, LSB 5452XC (3) 87 -30- mm/jh Page3l40Bf 291 S.F. 1 except that for the alternative simplified credit such amounts 2 are for research conducted within this state. 3 Sec. 80. Section 422.33, subsection 5, paragraph e, 4 subparagraph (2), Code 2018, is amended by striking the 5 subparagraph. 6 Sec. 81. Section 422.33, subsection 7, Code 2018, is amended 7 to read as follows: 8 7. a. (1) Therc For tax years beginning before January 1, 9 2020, there is allowed as a credit against the tax determined 10 in subsection 1 for a tax year an amount equal to the minimum 11 tax credit for that tax year. 12 (2) The minimum tax credit for a tax year is the excess, 13 if any, of the net minimum tax imposed for all prior tax years 14 beginning on or after January 1, 1987, but before January 15 1, 2019, over the amount allowable as a credit under this 16 subsection for those prior tax years. 17 b. (1) The allowable credit under paragraph "a""for a tax 18 year beginning before January 1, 2019, shall not exceed the 19 excess, if any, of the tax determined in subsection 1 over 20 the state alternative minimum tax as determined in subsection 21 4. The allowable credit under paragraph 'a""for a tax year 22 beginning in the 2019 calendar year shall not exceed the tax 23 determined in subsection 1. 24 (2) The net minimum tax for a tax year is the excess, if 25 any, of the tax determined in subsection 4 for the tax year 26 over the tax determined in subsection 1 for the tax year. 27 c. This subsection is repealed January 1, 2020, for tax 28 years beginning on or after January 1, 2020. 29 Sec. 82. 2018 INTERIM TAX CREDIT STUDY. The legislative tax 30 expenditure committee created in section 2.45 shall study all 31 tax credits available under Iowa law during the 2018 interim. 32 The study shall comprehensively review and evaluate each tax 33 credit to assess its cost, equity, simplicity, competitiveness, 34 public purpose, adequacy, effectiveness, and the extent of 35 conformance with the original purpose of the tax credit. The LSB 5452XC (3) 87 -31- mm/jh Page461838f 291 S.F. 1 legislative tax expenditure committee shall also consider 2 new or different tax credits or other incentive programs 3 for economic development that will improve predictability, 4 flexibility, and utilization, and put Iowa in the best position 5 for attracting and retaining business in the future. The 6 legislative tax expenditure committee shall submit its findings 7 and recommendations to the general assembly for consideration 8 during the 2019 legislative session. 9 Sec. 83. FUTURE REPEAL. Sections 15.326, 15.327, 15.329, 10 15.330, 15.330A, 15.331A, 15.331C, 15.332, 15.333, 15.333A, 11 15.335, 15.335A, 15.335B, 15.335C, and 15.336, Code 2018, are 12 repealed effective July 1, 2025. 13 Sec. 84. REPEAL. Sections 422.10A, 422.11I, and 422.11N, 14 Code 2018, are repealed. 15 Sec. 85. REPEAL. Section 422.11L, Code 2018, is repealed. 16 Sec. 86. REPEAL. Chapter 190B, Code 2018, is repealed. 17 Sec. 87. EFFECTIVE DATE AND APPLICABILITY. 18 1. Except as provided in subsections 2 through 11, this 19 division of this Act takes effect January 1, 2019, and applies 20 to tax years beginning on or after that date. 21 2. The section of this division of this Act repealing 22 section 422.11L, takes effect July 1, 2018, and applies to 23 solar energy system installations occurring on or after that 24 date. 25 3. The section of this division of this Act striking and 26 replacing section 15.119, subsection 2, paragraph "a"", takes 27 effect July 1, 2018. 28 4. The section of this division of this Act amending section 29 15.119, subsection 2, paragraphs "d", "e", and "g", takes 30 effect July 1, 2018. 31 5. The sections of this division of this Act amending 32 section 404A.4 take effect July 1, 2018. 33 6. The section of this division of this Act amending section 34 16.80, subsection 10, takes effect July 1, 2018. 35 7. The sections of this division of this Act enacting LSB 5452XC (3) 87 -32- mm/jh Page3M938f 291 S.F. 1 section 422.10, subsection 1, paragraph -Oa"", and enacting 2 section 422.33, subsection 5, paragraph "0e"", being deemed of 3 immediate importance, take effect upon enactment, and apply 4 retroactively to January 1, 2018, for tax years beginning on or 5 after that date and for tax returns, including amended returns, 6 filed on or after that date for any tax year. 7 8. The sections of this division of this Act amending 8 section 422.10, subsection 3, paragraph "a"", and section 9 422.33, subsection 5, paragraph "e", subparagraph (1), and 10 enacting section 422.10, subsection 3, paragraph "Oa"", and 11 section 422.33, subsection 5, paragraph "e", subparagraph 12 (01), being deemed of immediate importance, take effect upon 13 enactment, and apply retroactively to January 1, 2010, for tax 14 years beginning on or after that date. 15 9. The section of this division of this Act amending section 16 15.329, subsection 1, paragraph "f", takes effect July 1, 2018. 17 10. The section of this division of this Act amending 18 section 403.19A, subsection 3, paragraph "c"", subparagraph (2), 19 takes effect July 1, 2018. 20 11. The section of this division of this Act establishing 21 a 2018 interim tax credit study by the legislative tax 22 expenditure committee takes effect July 1, 2018. 23 DIVISION IV 24 FRANCHISE TAX AND MONEYS AND CREDITS TAX 25 Sec. 88. Section 15.293A, subsection 1, paragraph a, Code 26 2018, is amended to read as follows: 27 a. A redevelopment tax credit shall be allowed against 28 the taxes imposed in chapter 422, divisions II, III, and V, 29 and in chapter 432, - - - 30 imposed in section 533.329, for a portion of a taxpayer's 31 equity investment, as provided in subsection 3, in a qualifying 32 redevelopment project. 33 Sec. 89. Section 15.293A, subsection 2, paragraphs c and f, 34 Code 2018, are amended to read as follows: 35 c. The tax credit certificate, unless rescinded by the -33- LSB 5452XC (3) 87 mm/jh Page3Bf 291 S.F. 1 authority, shall be accepted by the department of revenue as 2 payment for taxes imposed pursuant to chapter 422, divisions 3 II, III, and V, and in chapter 432, and for thc moncy3 and 4 credits tax impo3ed in section 533.329, subject to any 5 conditions or restrictions placed by the authority upon 6 the face of the tax credit certificate and subject to the 7 limitations of this section. 8 f, A tax credit shall not be claimed by a transferee 9 under this section until a replacement tax credit certificate 10 identifying the transferee as the proper holder has been 11 issued. The transferee may use the amount of the tax credit 12 transferred against the taxes imposed in chapter 422, divisions 13 II, III, and V, and in chapter 432, and against thc moncys and 14 credits tax imposed in section 533.329, for any tax year the 15 original transferor could have claimed the tax credit. Any 16 consideration received for the transfer of the tax credit shall 17 not be included as income under chapter 422, divisions II, III, 18 and V. Any consideration paid for the transfer of the tax 19 credit shall not be deducted from income under chapter 422, 20 divisions II, III, and V. 21 Sec. 90. Section 15.333, subsection 1, Code 2018, is amended 22 to read as follows: 23 1. An eligible business may claim a tax credit equal to a 24 percentage of the new investment directly related to new jobs 25 created or retained by the project. The tax credit shall be 26 amortized equally over five calendar years. The tax credit 27 shall be allowed against taxes imposed under chapter 422, 28 division II, III, or V, and against thc moncys and crcdits tax 29 imposed in 3cction 533.329. If the business is a partnership, 30 S corporation, limited liability company, cooperative organized 31 under chapter 501 and filing as a partnership for federal tax 32 purposes, or estate or trust electing to have the income taxed 33 directly to the individual, an individual may claim the tax 34 credit allowed. The amount claimed by the individual shall 35 be based upon the pro rata share of the individual's earnings -34- LSB 5452XC (3) 87 mm/jh Page3138f 291 S.F. 1 of the partnership, S corporation, limited liability company, 2 cooperative organized under chapter 501 and filing as a 3 partnership for federal tax purposes, or estate or trust. The 4 percentage shall be determined as provided in section 15.335A. 5 Any tax credit in excess of the tax liability for the tax year 6 may be credited to the tax liability for the following seven 7 years or until depleted, whichever occurs first. 8 Sec. 91. Section 15.355, subsection 3, paragraph b, Code 9 2018, is amended to read as follows: 10 b. The tax credit shall be allowed against the taxes imposed 11 in chapter 422, divisions II, III, and V, and in chapter 432- 12 and against thc moncys and crcdits tax imposcd in section 13 533.329. 14 Sec. 92. Section 15.355, subsection 3, paragraph e, 15 subparagraphs (3) and (6), Code 2018, are amended to read as 16 follows: 17 (3) The tax credit certificate, unless rescinded by the 18 authority, shall be accepted by the department of revenue as 19 payment for taxes imposed pursuant to chapter 422, divisions 20 II, III, and V, and in chapter 432, and for thc moncys and 21 credits tax imposcd in s-cction 533.329, subject to any 22 conditions or restrictions placed by the authority upon 23 the face of the tax credit certificate and subject to the 24 limitations of this program. 25 (6) A tax credit shall not be claimed by a transferee 26 under this section until a replacement tax credit certificate 27 identifying the transferee as the proper holder has been 28 issued. The transferee may use the amount of the tax credit 29 transferred against the taxes imposed in chapter 422, divisions 30 II, III, and V, and in chapter 432, and against the moneye and 31 __ •, for any tax year the 32 original transferor could have claimed the tax credit. Any 33 consideration received for the transfer of the tax credit shall 34 not be included as income under chapter 422, divisions II, 35 III, and V. Any consideration paid for the transfer of the tax LSB 5452XC (3) 87 -35- mm/jh Page3f1Bf 291 S.F. 1 credit shall not be deducted from income under chapter 422, 2 divisions II, III, and V. 3 Sec. 93. Section 15E.43, subsection 1, paragraphs a and d, 4 Code 2018, are amended to read as follows: 5 a, For tax years beginning on or after January 1, 2015, 6 a tax credit shall be allowed against the taxes imposed in 7 chapter 422, divisions II, III, and V, and in chapter 432, affel 8 against thc moncys and crcdits tax imposcd in scction 533.329, 9 for a portion of a taxpayer's equity investment, as provided in 10 subsection 2, in a qualifying business. 11 d. For a tax credit claimed against the taxes imposed in 12 chapter 422, division II, any tax credit in excess of the 13 tax liability is refundable. In lieu of claiming a refund, 14 the taxpayer may elect to have the overpayment shown on 15 the taxpayer's final, completed return credited to the tax 16 liability for the following tax year. For a tax credit claimed 17 against the taxes imposed in chapter 422, divisions III and 18 V, and in chapter 432, and against thc moncys and crcdits tax 19 imposed in section 533.329, any tax credit in excess of the 20 taxpayer's liability for the tax year may be credited to the 21 tax liability for the following three years or until depleted, 22 whichever is earlier. A tax credit shall not be carried back 23 to a tax year prior to the tax year in which the taxpayer 24 redeems the tax credit. 25 Sec. 94. Section 15E.44, subsection 4, Code 2018, is amended 26 to read as follows: 27 4. After verifying the eligibility of a qualifying 28 business, the authority shall issue a tax credit certificate 29 to be included with the equity investor's tax return. The tax 30 credit certificate shall contain the taxpayer's name, address, 31 tax identification number, the amount of credit, the name of 32 the qualifying business, and other information required by the 33 department of revenue. The tax credit certificate, unless 34 rescinded by the authority, shall be accepted by the department 35 of revenue as payment for taxes imposed pursuant to chapter LSB 5452XC (3) 87 -36- mm/jh Page3fi1ef 291 S.F. 1 422, divisions II, III, and V, and in chapter 432, and for thc 2 moncys and crcdits tax imposcd in scction 533.329, subject to 3 any conditions or restrictions placed by the authority upon 4 the face of the tax credit certificate and subject to the 5 limitations of section 15E.43. 6 Sec. 95. Section 15E.52, subsection 2, paragraph a, Code 7 2018, is amended to read as follows: 8 a. A tax credit shall be allowed against the taxes imposed 9 in chapter 422, divisions II, III, and V, and in chapter 432, 10 and against thc moncys and crcdit3 tax imposcd in scction 11 533.329, for a portion of a taxpayer's equity investment in the 12 form of cash in an innovation fund. 13 Sec. 96. Section 15E.52, subsection 13, Code 2018, is 14 amended to read as follows: 15 13. The transferee may use the amount of the tax credit 16 transferred against the taxes imposed in chapter 422, divisions 17 II, III, and V, and in chapter 432, and against thc moncys and 18 crcdit3 tax imposcd in scction 533.329, for any tax year the 19 original transferor could have claimed the tax credit. Any 20 consideration received for the transfer of the tax credit shall 21 not be included as income under chapter 422, divisions II, III, 22 and V. Any consideration paid for the transfer of the tax 23 credit shall not be deducted from income under chapter 422, 24 divisions II, III, and V. 25 Sec. 97. Section 15E.62, subsection 8, Code 2018, is amended 26 to read as follows: 27 8. -Tax credit' means a contingent tax credit issued 28 pursuant to section 15E.66 that is available against tax 29 liabilities imposed by chapter 422, divisions II, III, and 30 V, and by chapter 432 and against thc moneys and credits tax 31 imposcd by scction 5334. 32 Sec. 98. Section 15E.305, subsection 1, Code 2018, is 33 amended to read as follows: 34 1. For tax years beginning on or after January 1, 2003, 35 a tax credit shall be allowed against the taxes imposed in LSB 5452XC (3) 87 -37- mm/jh Page31'ef 291 S.F. 1 chapter 422, divisions II, III, and V, and in chapter 432, and 2 against the moncys and crcdits tax imposcd in scction 533.329 3 equal to twenty-five percent of a taxpayer's endowment gift to 4 an endow Iowa qualified community foundation. An individual 5 may claim a tax credit under this section of a partnership, 6 limited liability company, S corporation, estate, or trust 7 electing to have income taxed directly to the individual. The 8 amount claimed by the individual shall be based upon the pro 9 rata share of the individual's earnings from the partnership, 10 limited liability company, S corporation, estate, or trust. A 11 tax credit shall be allowed only for an endowment gift made to 12 an endow Iowa qualified community foundation for a permanent 13 endowment fund established to benefit a charitable cause in 14 this state. The amount of the endowment gift for which the 15 tax credit is claimed shall not be deductible in determining 16 taxable income for state income tax purposes. Any tax credit 17 in excess of the taxpayer's tax liability for the tax year may 18 be credited to the tax liability for the following five years 19 or until depleted, whichever occurs first. A tax credit shall 20 not be carried back to a tax year prior to the tax year in which 21 the taxpayer claims the tax credit. 22 Sec. 99. Section 331.427, subsection 1, unnumbered 23 paragraph 1, Code 2018, is amended to read as follows: 24 Except as otherwise provided by state law, county revenues 25 from taxes and other sources for general county services shall 26 be credited to the general fund of the county, including 27 revenues received under sections 9I.11, 101A.3, 101A.7, 123.36, 28 123.143, 142D.9, 176A.8, 321.105, 321.152, 321G.7, 321I.8, 29 section 331.554, subsection 6, sections 341A.20, 364.3, 368.21, 30 423A.7, 428A.8, 433.15, 434.19, 445.57, 453A.35, 458A.21, 31 483A.12, 533.329, 556B.1, 583.6, 602.8108, 904.908, and 906.17, 32 and the following: 33 Sec. 100. Section 422.60, subsection 2, paragraph a, Code 34 2018, is amended to read as follows: 35 a. In addition to all taxes imposed under this division, -38- LSB 5452XC (3) 87 mm/jh Page3M8f 291 S.F. 1 there is imposed upon each financial institution doing business 2 within the state and that is not exempt from the federal income 3 tax, the greater of the tax determined in section 422.63 or 4 the state alternative minimum tax equal to sixty percent of 5 the maximum state franchise tax rate, rounded to the nearest 6 one-tenth of one percent, of the state alternative minimum 7 taxable income of the taxpayer computed under this subsection. 8 Sec. 101. Section 422.60, subsection 3, paragraph a, 9 subparagraph (1), Code 2018, is amended to read as follows: 10 (1) Thcrc For a financial institution that is not exempt 11 from the federal income tax, there is allowed as a credit 12 against the tax determined in section 422.63 for a tax year an 13 amount equal to the minimum tax credit for that tax year. 14 Sec. 102. Section 422.61, subsections 1, 3, and 4, Code 15 2018, are amended to read as follows: 16 1. 'Financial institution- means a state bank as defined 17 in section 524.103, subsection 41, a state bank chartered 18 under the laws of any other state, a national banking 19 association, a trust company, a federally chartered savings 20 and loan association, an out-of-state state chartered savings 21 bank, a credit union as defined in section 533.102 that is 22 incorporated or organized under chapter 533 or under the laws 23 of another state, a financial institution chartered by the 24 federal home loan bank board, a non -Iowa chartered savings and 25 loan association, e-- a production credit association, or an 26 agricultural credit association that is a member of the farm 27 credit system under the federal Farm Credit Act, 12 U.S.C. ch. 28 23, as amended. 29 3. a. 'Net income"" means one of the following: 30 (1) For a financial institution that is exempt from the 31 federal income tax, the total revenue less total expenses as 32 properly reported on the financial institution's internal 33 revenue service form 990 covering the same period, with the 34 adjustments in paragraph "b"" to the extent the taxes, income, 35 and deductions described in such adjustments are applicable LSB 5452XC (3) 87 -39- mm/jh Page3M38f 291 S.F. 1 to the financial institution's calculation of revenues and 2 expenses as determined by the director by rule. 3 (2) For any other financial institution, the net income of 4 the financial institution computed in accordance with section 5 422.35, with the following adjustments-- in paragraph 6 b. Applicable adjustments in computing 'net income": 7 (1) Federal income taxes paid or accrued shall not be 8 subtracted. 9 (2) Notwithstanding section 422.35, subsection 2, or 10 any other provisions of law, income from obligations of the 11 state and its political subdivisions and franchise taxes paid 12 or accrued under this division during the taxable year shall 13 be added. Income from sales of obligations of the state and 14 its political subdivisions and interest and dividend income 15 from these obligations are exempt from the taxes imposed by 16 this division only if the law authorizing the obligations 17 specifically exempts the income from the sale and interest and 18 dividend income from the state franchise tax. 19 e: (3) Interest and dividends from federal securities shall 20 not be subtracted. 21 eL (4) Interest and dividends derived from obligations of 22 United States possessions, agencies, and instrumentalities, 23 including bonds which were purchased after January 1, 1991, and 24 issued by the governments of Puerto Rico, Guam, and the Virgin 25 Islands shall be added, to the extent they were not included in 26 computing federal taxable income. 27 e: (5) A deduction disallowed under section 265(b) or 28 section 291(e)(1)(B) of the Internal Revenue Code shall be 29 subtracted. 30 (6) A deduction shall not be allowed for that portion of 31 the taxpayer's expenses computed under this paragraph which is 32 allocable to an investment in an investment subsidiary. The 33 portion of the taxpayer's expenses which is allocable to an 34 investment in an investment subsidiary is an amount which bears 35 the same ratio to the taxpayer's expenses as the taxpayer's LSB 5452XC (3) 87 -40- mm/jh Page4478f 291 S.F. 1 average adjusted basis, as computed pursuant to section 1016 2 of the Internal Revenue Code, of investment in that investment 3 subsidiary bears to the average adjusted basis for all assets 4 of the taxpayer. The portion of the taxpayer's expenses that 5 is computed and disallowed under this paragraph shall be added. 6 (7) Where a financial institution as defined in section 7 581 of the Internal Revenue Code is not subject to income tax 8 and the shareholders of the financial institution are taxed on 9 the financial institution's income under the provisions of the 10 Internal Revenue Code, such tax treatment shall be disregarded 11 and the financial institution shall compute its net income for 12 franchise tax purposes in the same manner under this subsection 13 as a financial institution that is subject to or liable for 14 federal income tax under the Internal Revenue Code in effect 15 for the applicable year. 16 4. "Taxable year"" means the calendar year or the fiscal year 17 ending during a calendar year, for which the tax is payable. 18 Fiscal year"" includes a tax period of less than twelve months 19 if, under the Internal Revenue Code, a corporation is required 20 to file a tax return or internal revenue service form 990 21 covering a tax period of less than twelve months. 22 Sec. 103. Section 422.62, Code 2018, is amended to read as 23 follows: 24 422.62 Due and delinquent dates. 25 The franchise tax is due and payable on the first day 26 following the end of the taxable year of each financial 27 institution, and for a financial institution that is exempt 28 from the federal income tax, the franchise tax is delinquent 29 after the last day of the fifth month following the due date. 30 For all other financial institutions, the franchise tax is 31 delinquent after the last day of the fourth month following the 32 due date or forty-five days after the due date of the federal 33 tax return, excluding extensions of time to file, whichever is 34 the later. Every financial institution shall file a return as 35 prescribed by the director on or before the delinquency date. -41- LSB 5452XC (3) 87 mm/jh Page4 1Bf 291 S.F. 1 Sec. 104. Section 422.63, Code 2018, is amended to read as 2 follows: 3 422.63 Amount of tax. 4 1. The franchise tax is imposed annually in an amount equal 5 to fivc perccnt of computed by applying the following rates 6 of taxation to the net income received or accrued during the 7 taxable year: 8 a. On net income from zero to seven million five hundred 9 thousand dollars, two percent. 10 b. On net income exceeding seven million five hundred 11 thousand dollars, four percent. 12 2. If the net income of the financial institution is derived 13 from its business carried on entirely within the state, the tax 14 in subsection 1 shall be imposed on the entire net income, but 15 if the business is carried on partly within and partly without 16 the state, the tax in subsection 1 shall be imposed on the 17 portion of net income reasonably attributable to the business 18 within the state, which net income shall be specifically 19 allocated or equitably apportioned within and without the state 20 under rules of the director. 21 Sec. 105. REPEAL. Section 533.329, Code 2018, is repealed. 22 Sec. 106. PRESERVATION OF EXISTING RIGHTS. This division 23 of this Act is not intended and shall not limit, modify, 24 or otherwise adversely affect any tax credit or tax credit 25 certificate issued, awarded, or allowed before January 1, 2019, 26 nor shall it limit, modify, or otherwise adversely affect 27 a taxpayer's right to claim or redeem a tax credit issued, 28 awarded, or allowed before January 1, 2019, including but not 29 limited to any tax credit carryforward amount. Any amount of 30 tax credit that would have been eligible to be claimed by a 31 taxpayer on or after January 1, 2019, against the moneys and 32 credits tax imposed in section 533.329, Code 2018, shall be 33 allowed in the same manner and to the same extent as a credit 34 against the franchise tax imposed in chapter 422, division V. 35 Sec. 107. EFFECTIVE DATE. This division of this Act takes LSB 5452XC (3) 87 -42- mm/jh Page41?8f 291 S.F. 1 effect January 1, 2019. 2 Sec. 108. APPLICABILITY. This division of this Act applies 3 to tax years beginning on or after January 1, 2019. 4 DIVISION V 5 CHANGES TO IOWA EDUCATIONAL SAVINGS PLAN TRUST AND IOWA ABLE 6 SAVINGS PLAN TRUST 7 Sec. 109. Section 12D.1, Code 2018, is amended to read as 8 follows: 9 12D.1 Purpose and definitions. 10 1. The general assembly finds that the general welfare and 11 well-being of the state are directly related to educational 12 levels and skills of the citizens of the state, and that a 13 vital and valid public purpose is served by the creation and 14 implementation of programs which encourage and make possible 15 the attainment of higher formal education by the greatest 16 number of citizens of the state. The 17 resources to provide additional programs for higher education 18 19 _ .. general 20 welfare of the citizens of the state will be enhanced by 21 establishing a program which allows citizens of the state to 22 invest money in a public trust for future application to the 23 payment of higher education costs qualified education expenses. 24 The creation of the means of encouragement for citizens to 25 invest in such a program represents the carrying out of a 26 vital and valid public purpose. In order to make available 27 to the citizens of the state an opportunity to fund future 28 higher formal education needs, it is necessary that a public 29 trust be established in which moneys may be invested for future 30 educational use. 31 2. As used in this chapter, unless the context otherwise 32 requires: 33 a. Account balance limit- means the maximum allowable 34 aggregate balance of accounts established for the same 35 beneficiary. Account earnings, if any, are included in the LSB 5452XC (3) 87 -43- mm/jh Page4fBf 291 S.F. 1 account balance limit. 2 b. 7AdMinistrative fund"" means the administrative fund 3 established under section 12D.4. 4 c. Beneficiary"" means the individual designated by a 5 participation agreement to benefit from advance payments of 6 - -:.-. - qualified education expenses on behalf 7 of the beneficiary. 8 d, 'Benefits- means the payment of highcr cducation costs 9 qualified education expenses on behalf of a beneficiary by the 10 trust during the beneficiary's attendance at an institution of 11 higher edu ation a qualified educational institution. 12 e. "Higher cducation costs"" means the samc as "qualified 13 highcr cducation expenses"" as defined inscction 529(c)(3) of 14 -- - - --.- 15 €: e. -Institution of higher education"" means an institution 16 described in section 481 of the federal Higher Education Act of 17 1965, 20 U.S.C. §1088, which is eligible to participate in the 18 United States department of education's student aid programs. 19 f. "Internal Revenue Code"" means the same as defined 20 insection 12I.1. 21 fr q, "Iowa educational savings plan trust or -trust, means 22 the trust created under section 12D.2. 23 3— h. Participant"" means an individual, individual's legal 24 representative, trust, estate, or an organization described 25 in section 501(c)(3) of the Internal Revenue Code and exempt 26 from taxation under section 501(a) of the Internal Revenue 27 Code, that has entered into a participation agreement under 28 this chapter for the advance payment of highcr cducation costs 29 qualified education expenses on behalf of a beneficiary. 30 i, 'Participation agreement"" means an agreement between 31 a participant and the trust entered into under this chapter. 32 j. 'Program fund"" means the program fund established 33 under section 12D.4. 34 k. "Qualified education expenses"" means the same as 35 -qualified higher education expenses"" as defined in section LSB 5452XC (3) 87 -44- mm/jh Page411813Bf 291 S.F. 1 529(e)(3) of the Internal Revenue Code, as amended by Pub. L. 2 No. 115-97, and shall include elementary and secondary school 3 expenses for tuition described in section 529(c)(7) of the 4 Internal Revenue Code, subject to the limitations imposed by 5 section 529(e)(3)(A) of the Internal Revenue Code. 6 1. "Qualified educational institution"" means an institution 7 of higher education, or any elementary or secondary public, 8 private, or religious school described in section 529(c)(7) of 9 the Internal Revenue Code. 10 � m, -Tuition and feta"" -Tuition"" means the quarter, e-- 11 semester, or annual charges imposed to attend an institution 12 of highcr cducation a qualified educational institution and 13 required as a condition of enrollment or attendance. 14 Sec. 110. Section 12D.2, subsections 2, 5, 9, and 14, Code 15 2018, are amended to read as follows: 16 2. Enter into agreements with any institution of highcr 17 cducation qualified educational institution, the state, or any 18 federal or other state agency, or other entity as required to 19 implement this chapter. 20 5. Carry out studies and projections so the treasurer of 21 state may advise participants regarding present and estimated 22 future highcr education costs qualified education expenses 23 and levels of financial participation in the trust required 24 in order to enable participants to achieve their educational 25 funding objectives. 26 9. Make payments to institutions of higher cducation 27 qualified educational institutions, participants, or 28 beneficiaries, pursuant to participation agreements on behalf 29 of beneficiaries. 30 14. Establish, impose, and collect administrative fees 31 and charges in connection with transactions of the trust, and 32 provide for reasonable service charges, including penalties for 33 34 agrc-cmcnta. 35 Sec. 111. Section 12D.3, subsections 1 and 2, Code 2018, are LSB 5452XC (3) 87 -45- mm/jh Page4fBf 291 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 S.F. amended to read as follows: 1. a- Each participation agreement may require a participant to agree to invest a specific amount of money in the trust for a specific period of time for the benefit of a specific beneficiary. A participant shall not be required to make an annual contribution on behalf of a beneficiary. The maximum contribution that may be deducted for Iowa income tax purposes shall not exceed two thousand dollars per beneficiary per year adjusted annually to reflect increases in the consumer price index. The treasurer of state shall set an account balance limit to maintain compliance with section 529 of the Internal Revenue Code. A contribution shall not be permitted to the extent it causes the aggregate balance of all accounts established for the same beneficiary under the trust to exceed the applicable account balance limit. adjusted levels of payments based upon changed circumstances or changes in cducational plans. 2. The execution of a participation agreement by the trust shall not guarantee in any way that highcr cducation costs qualified education expenses will be equal to projections and estimates provided by the trust or that the beneficiary named in any participation agreement will attain any of the following: a, Be admitted to an institution of highcr cducation a qualified educational institution. b. If admitted, be determined a resident for tuition purposes by the institution of highcr cducation qualified educational institution. c. Be allowed to continue attendance at the in3titution of highcr cducation qualified educational institution following admission. d. Graduate from the institution of highcr cducation qualified educational institution. Sec. 112. Section 12D.3, Code 2018, is amended by adding the LSB 5452XC (3) 87 -46- mm/jh Page4$Bf 291 S.F. 1 following new subsection: 2 NEW SUBSECTION. 5. A participant may designate a successor 3 in accordance with rules adopted by the treasurer of state. 4 The designated successor shall succeed to the ownership of the 5 account in the event of the death of the participant. In the 6 event a participant dies and has not designated a successor to 7 the account, the following criteria shall apply: 8 a, The beneficiary of the account, if eighteen years of 9 age or older, shall become the owner of the account as well as 10 remain the beneficiary upon filing the appropriate forms in 11 accordance with rules adopted by the treasurer of state. 12 b. If the beneficiary of the account is under the age of 13 eighteen, account ownership shall be transferred to the first 14 surviving parent or other legal guardian of the beneficiary to 15 file the appropriate forms in accordance with rules adopted by 16 the treasurer of state. 17 Sec. 113. Section 12D.4, Code 2018, is amended to read as 18 follows: 19 12D.4 Program and administrative funds — investment and 20 payments. 21 1. a. The treasurer of state shall segregate moneys 22 received by the trust into two funds: the program fund and the 23 administrative fund. 24 b. All moneys paid by participants in connection with 25 participation agreements shall be deposited as received into 26 separate accounts within the program fund. 27 c. Contributions to the trust made by participants may only 28 be made in the form of cash. 29 d, A participant or beneficiary -shall not provide invcatmcnt 30 direction regarding program contributions or earnings held by 31 *h -c trust may, directly or indirectly, direct the investment of 32 any contributions to the trust or any earnings thereon no more 33 than two times in a calendar year. 34 e. The amount of cash distributions from the trust and all 35 other qualified state tuition programs under section 529 of LSB 5452XC (3) 87 -47- mm/jh Page41'Bf 291 S.F. 1 the Internal Revenue Code to a beneficiary during any taxable 2 year shall, in the aggregate, include no more than ten thousand 3 dollars in expenses for tuition in connection with enrollment 4 at an elementary or secondary public, private, or religious 5 school incurred during the taxable year. 6 2. Moneys accrued by participants in the program fund of 7 the trust may be used for payments to any institution of highcr 8 cducation qualified educational institution. Payments can be 9 made to the qualified educational institution, the participant, 10 or the beneficiary. 11 Sec. 114. Section 12D.6, subsection 1, paragraph a, Code 12 2018, is amended to read as follows: 13 a. A participant retains ownership of all payments made 14 under a participation agreement up to the date of utilization 15 for payment of highcr cducation costs qualified education 16 expenses for the beneficiary. 17 Sec. 115. Section 12D.6, subsections 2, 3, and 5, Code 2018, 18 are amended to read as follows: 19 2. In the event the program is terminated prior to payment 20 of highcr cducation costs qualified education expenses for the 21 beneficiary, the participant is entitled to a refund of the 22 participant's account balance. 23 3. The institution of highcr cducation qualified 24 educational institution shall obtain ownership of the payments 25 made for the highcr cducation costs qualified education 26 expenses paid to the institution at the time each payment is 27 made to the institution. 28 5. A participant may transfer ownership rights to another 2930 to a minor beneficiary participant, or may transfer funds to 31 another plan under the trust or to an ABLE account as permitted 32 under section 529(c)(3)(C) of the Internal Revenue Code. 33 The transfer shall be made and the property distributed in 34 accordance with rules adopted by the treasurer of state or with 35 the terms of the participation agreement. -48- LSB 5452XC (3) 87 mm/jh Page4i33Bf 291 S.F. 1 Sec. 116. Section 12D.7, Code 2018, is amended to read as 2 follows: 3 12D.7 Effect of payments on determination of need and 4 eligibility for student financial aid. 5 A student loan program, student grant program, or other 6 program administered by any agency of the state, except as 7 may be otherwise provided by federal law or the provisions 8 of any specific grant applicable to that law, shall not take 9 into account and shall not consider amounts available for 10 the payment of highcr cducation costs qualified education 11 expenses pursuant to the Iowa educational savings plan trust in 12 determining need and eligibility for student aid. 13 Sec. 117. Section 12D.9, subsection 1, paragraph a, Code 14 2018, is amended to read as follows: 15 a. Pursuant to section 12D.3, subsection 1, paragraph "a 16 a participant may make contributions to an account which is 17 established for the purpose of meeting the qualified higher 18 education expenses of the designated beneficiary of the 19 account. 20 Sec. 118. Section 422.7, subsection 32, paragraph c, Code 21 2018, is amended by striking the paragraph and inserting in 22 lieu thereof the following: 23 c. (1) Add, to the extent previously deducted as a 24 contribution to the trust, the amount resulting from a 25 withdrawal or transfer made by the taxpayer from the Iowa 26 educational savings plan trust for purposes other than any of 27 the following: 28 (a) The payment of qualified higher education expenses. 29 (b) The payment of tuition to an elementary or secondary 30 school if the tuition amounts are qualified education expenses. 31 (c) A change in beneficiaries under, or transfer to another 32 account within, the Iowa educational savings plan trust, or a 33 transfer to the Iowa ABLE savings plan trust, provided such 34 change or transfer is permitted under section 12D.6, subsection 35 5. LSB 5452XC (3) 87 -49- mm/jh Page44)Bf 291 S.F. 1 (2) For purposes of this paragraph: 2 (a) -Elementary or secondary school- means an elementary 3 or secondary school in this state which is accredited under 4 section 256.11, and adheres to the provisions of the federal 5 Civil Rights Act of 1964 and chapter 216. 6 (b) -Institution of higher education"", "qualified education 7 expenses-, and -tuition-all mean the same as defined in section 8 12D.1, subsection 2. 9 (c) (i) "Qualified higher education expenses- means the same 10 as defined in section 529(e)(3) of the Internal Revenue Code. 11 (ii) For purposes of this subparagraph division (c), 12 -Internal Revenue Code"" means the Internal Revenue Code of 13 1954, prior to the date of its redesignation as the Internal 14 Revenue Code of 1986 by the Tax Reform Act of 1986, or means 15 the Internal Revenue Code of 1986 as amended and in effect on 16 January 1, 2018. This definition shall not be construed to 17 include any amendment to the Internal Revenue Code enacted 18 after the date specified in the preceding sentence, including 19 any amendment with retroactive applicability or effectiveness. 20 Sec. 119. Section 422.7, subsection 34, Code 2018, is 21 amended to read as follows: 22 34. a. (1) Subtract the amount contributed during the tax 23 year on behalf of a designated beneficiary that is a resident 24 of this state to the Iowa ABLE savings plan trust or to the 25 qualified ABLE program with which the state has contracted 26 pursuant to section 121.10, not to exceed the maximum 27 contribution level established in section 121.3, subsection 1, 28 paragraph "d", or section 121.10, subsection 2, paragraph 'a"", 29 as applicable. 30 (2) This paragraph 'a"" shall not apply to any amount 31 of contribution that represents a transfer from the Iowa 32 educational savings plan trust created in chapter 12D that 33 meets the requirements of subsection 32, paragraph "c"", 34 subparagraph (1), subparagraph division (c), and that was 35 previously deducted as a contribution to the Iowa educational LSB 5452XC (3) 87 -50- mm/jh Page5.47Bf 291 S.F. 1 savings plan trust. 2 b. Add the amount resulting from the cancellation of a 3 participation agreement refunded to the taxpayer as an account 4 owner in the Iowa ABLE savings plan trust or the qualified 5 ABLE program with which the state has contracted pursuant to 6 section 121.10 to the extent previously deducted pursuant 7 to this subsection by the taxpayer or any other person as a 8 contribution to the trust or qualified ABLE program, or to the 9 extent the amount was previously deducted by the taxpayer or 10 any other person pursuant to subsection 32, paragraph 'a"", and 11 qualified as a transfer under paragraph 'a", subparagraph (2), 12 of this subsection. 13 c. Add the amount resulting from a withdrawal made by a 14 taxpayer from the Iowa ABLE savings plan trust or the qualified 15 ABLE program with which the state has contracted pursuant to 16 section 121.10 for purposes other than the payment of qualified 17 disability expenses to the extent previously deducted pursuant 18 to this subsection by the taxpayer or any other person as a 19 contribution to the trust or qualified ABLE program, or to the 20 extent the amount was previously deducted by the taxpayer or 21 any other person pursuant to subsection 32, paragraph 'a"", and 22 qualified as a transfer under paragraph 'a", subparagraph (2), 23 of this subsection. 24 Sec. 120. Section 627.6, Code 2018, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION. 17. The debtor's interest, whether as 27 participant or beneficiary, in contributions and assets, 28 including the accumulated earnings and market increases in 29 value, held in an account in the Iowa educational savings plan 30 trust organized under chapter 12D. 31 Sec. 121. EFFECTIVE DATE. This division of this Act, being 32 deemed of immediate importance, takes effect upon enactment. 33 Sec. 122. RETROACTIVE APPLICABILITY. 34 1. Except as provided in subsection 2, this division of this 35 Act applies retroactively to January 1, 2018, for withdrawals LSB 5452XC (3) 87 -51- mm/jh Page51- 8f 291 S.F. 1 from the Iowa educational savings plan trust made on or after 2 that date. 3 2. The sections of this division of this Act amending 4 section 422.7 apply retroactively to January 1, 2018, for tax 5 years beginning on or after that date, and for withdrawals from 6 the Iowa educational savings plan trust made on or after that 7 date. 8 DIVISION VI 9 SALES AND USE TAXES 10 Sec. 123. Section 15J.4, subsection 3, paragraph f, Code 11 2018, is amended to read as follows: 12 f. The total aggregate amount of state sales tax revenues 13 and state hotel and motel tax revenues that may be approved by 14 the board for remittance to all municipalities and that may 15 be transferred to the state reinvestment district fund under 16 section 423.2, subsection 11, 423.2A or section 423A.6, and 17 remitted to all municipalities having a reinvestment district 18 under this chapter shall not exceed one hundred million 19 dollars. 20 Sec. 124. Section 15J.5, subsection 1, paragraph a, Code 21 2018, is amended to read as follows: 22 a. The department shall calculate quarterly the amount of 23 new state sales tax revenues for each district established in 24 the state to be deposited in the state reinvestment district 25 fund created in section 15J.6, pursuant to section 423.2, 26 -subsection 11, paragraph "b" 423.2A, subsection 2, subject to 27 remittance limitations established by the board pursuant to 28 section 15J.4, subsection 3. 29 Sec. 125. Section 15J.6, subsection 1, Code 2018, is amended 30 to read as follows: 31 1. A state reinvestment district fund is established in the 32 state treasury under the control of the department consisting 33 of the new state sales tax revenues collected within each 34 district and deposited in the fund pursuant to section 423.2, 35 423.2A, subsection 2, and the -52- LSB 5452XC (3) 87 mm/jh Page51?Bf 291 S.F. 1 new state hotel and motel tax revenues collected within each 2 district and deposited in the fund pursuant to section 423A.6. 3 Moneys deposited in the fund are appropriated to the department 4 for the purposes of this section. Moneys in the fund shall 5 only be used for the purposes of this section. 6 Sec. 126. Section 418.11, subsection 1, Code 2018, is 7 amended to read as follows: 8 1. The department of revenue shall calculate quarterly the 9 amount of increased sales tax revenues for each governmental 10 entity approved to use sales tax increment revenues and the 11 amount of such revenues to be transferred to the sales tax 12 increment fund pursuant to section 423.2, subscction 11, 13 paragraph "b" 423.2A, subsection 2. 14 Sec. 127. Section 418.12, subsection 1, Code 2018, is 15 amended to read as follows: 16 1. A sales tax increment fund is established as a separate 17 and distinct fund in the state treasury under the control of 18 the department of revenue consisting of the amount of the 19 increased state sales and services tax revenues collected by 20 the department of revenue within each applicable area specified 21 in section 418.11, subsection 3, and deposited in the fund 22 pursuant to section 423.2, subsection 11, paragraph "b" 423.2A, 23 subsection 2. Moneys deposited in the fund are appropriated 24 to the department of revenue for the purposes of this section. 25 Moneys in the fund shall only be used for the purposes of this 26 section. 27 Sec. 128. Section 421.26, Code 2018, is amended to read as 28 follows: 29 421.26 Personal liability for tax due. 30 If a licensee or other person under section 452A.65, a 31 retailer or purchaser under chapter 423A, 423B, or 423E, or 32 scction sections 423.14, 423.14A, 423.29, 423.31, 423.32, or 33 423.33, or a rctailcr or purchascr undcr scction 423.32, or 34 a user under section 423.34, or a permit holder or licensee 35 under section 453A.13, 453A.16, or 453A.44 fails to pay a tax LSB 5452XC (3) 87 -53- mm/jh Page5f3Bf 291 S.F. 1 under those sections when due, an officer of a corporation 2 or association, notwithstanding section 489.304, a member or 3 manager of a limited liability company, or a partner of a 4 partnership, having control or supervision of or the authority 5 for remitting the tax payments and having a substantial legal 6 or equitable interest in the ownership of the corporation, 7 association, limited liability company, or partnership, who has 8 intentionally failed to pay the tax is personally liable for 9 the payment of the tax, interest, and penalty due and unpaid. 10 However, this section shall not apply to taxes on accounts 11 receivable. The dissolution of a corporation, association, 12 limited liability company, or partnership shall not discharge a 13 person's liability for failure to remit the tax due. 14 Sec. 129. Section 423.1, subsection 5, Code 2018, is amended 15 to read as follows: 16 5. "Agricultural production"" includcs means the commercial 17 production of livestock, milk, honey, eggs, or plants, 18 including but not limited to flowering, ornamental, or 19 vegetable plants in commercial greenhouses or otherwise, 20 aid commercial production from aquaculture, and commercial 21 production from silvicultural activities. -.Agricultural 22 products"" includes flowering, ornamental, or vegetable plants 23 and those products of aquaculture and silviculture. 24 Sec. 130. Section 423.1, Code 2018, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION. 22A. -Information services"" means every 27 activity, process, or function by which a seller accumulates, 28 prepares, organizes, conveys, analyzes, or delivers data, 29 facts, knowledge, procedures, information, and other similar 30 services to a purchaser through any tangible, intangible, 31 or electronic medium. Information accumulated, prepared, 32 or organized for a purchaser is an information service even 33 though it may incorporate preexisting components of data or 34 other information. -Information services"" includes but is not 35 limited to database files, research information, genealogical LSB 5452XC (3) 87 -54- mm/jh Page514138f 291 S.F. 1 information, and other similar services. 2 Sec. 131. Section 423.1, subsection 24, paragraph a, Code 3 2018, is amended to read as follows: 4 a. Lease or rental"" means any transfer of possession 5 or control of, or access to, tangible personal property or 6 specified digital products for a fixed or indeterminate term 7 for consideration. A -lease or rental"" may include future 8 options to purchase or extend. 9 Sec. 132. Section 423.1, subsection 37, Code 2018, is 10 amended to read as follows: 11 37. "Place of business"" means any warehouse, store, 12 place, office, building, or structure where goods, wares, or 13 mcrchandi3e tangible personal property, specified digital 14 products, or services are offered for sale at retail or where 15 any taxable amusement is conducted, or each office where gas, 16 water, heat, communication, or electric services are offered 17 for sale at retail. When a retailer or amusement operator 18 sells merchandise by means of vending machines or operates 19 music or amusement devices by coin-operated machines at more 20 than one location within the state, the office, building, or 21 place where the books, papers, and records of the taxpayer are 22 kept shall be deemed to be the taxpayer's place of business. 23 Sec. 133. Section 423.1, Code 2018, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION. 36A. Personal property"" includes but is 26 not limited to tangible personal property and specified digital 27 products. 28 Sec. 134. Section 423.1, subsection 43, paragraph a, 29 subparagraph (3), Code 2018, is amended to read as follows: 30 (3) Taking possession or making first use of digital goods 31 specified digital products, whichever comes first. 32 Sec. 135. Section 423.1, subsection 47, Code 2018, is 33 amended to read as follows: 34 47. Retailer"" means and includes every person engaged 35 in the business of selling tangible personal property, -55- LSB 5452XC (3) 87 mm/jh Page5fBf 291 S.F. 1 specified digital products, or taxable services at retail, or 2 the furnishing of gas, electricity, water, or communication 3 service, and tickets or admissions to places of amusement 4 and athletic events or operating amusement devices or other 5 forms of commercial amusement from which revenues are derived. 6 However, when in the opinion of the director it is necessary 7 for the efficient administration of this chapter to regard 8 any salespersons, representatives, truckers, peddlers, or 9 canvassers as agents of the dealers, distributors, supervisors, 10 employers, or persons under whom they operate or from whom 11 they obtain tangible personal property, services, or specified 12 digital products sold by them irrespective of whether or not 13 they are making sales on their own behalf or on behalf of such 14 dealers, distributors, supervisors, employers, or persons, 15 the director may so regard them, and may regard such dealers, 16 distributors, supervisors, employers, or persons as retailers 17 for the purposes of this chapter. -Retailer"" includes a seller 18 obligated to collect sales or use tax, including any person 19 obligated to collect sales and use tax pursuant to section 20 423.14A. 21 Sec. 136. Section 423.1, subsection 48, paragraph a, Code 22 2018, is amended to read as follows: 23 a. -Retailer maintaining a place of business in this state"" 24 or any like term includes any of the following: 25 (1) A retailer having or maintaining within this state, 26 directly or by a subsidiary, an office, distribution house, 27 sales house, warehouse, or other place of business, or any 28 representative operating within this state under the authority 29 of the retailer or its subsidiary, irrespective of whether that 30 place of business or representative is located here permanently 31 or temporarily, or whether the retailer or subsidiary is 32 admitted to do business within this state pursuant to chapter 33 490. 34 (2) A person obligated to collect sales and use tax pursuant 35 to section 423.14A. LSB 5452XC (3) 87 -56- mm/jh Page5f8f 291 S.F. 1 Sec. 137. Section 423.1, subsection 48, paragraph b, 2 subparagraph (1), unnumbered paragraph 1, Code 2018, is amended 3 to read as follows: 4 A retailer shall be presumed to be maintaining a place of 5 business in this state, as dcfincd in for purposes of paragraph 6 'a", subparagraph (1), if any person that has substantial nexus 7 in this state, other than a person acting in its capacity as a 8 common carrier, does any of the following: 9 Sec. 138. Section 423.1, subsection 48, paragraph b, 10 subparagraph (1), subparagraph division (b), Code 2018, is 11 amended to read as follows: 12 (b) Maintains an office, distribution facility, warehouse, 13 storage place, or similar place of business in this state to 14 facilitate the delivery of personal property or services sold 15 by the retailer to the retailer's customers. 16 Sec. 139. Section 423.1, subsection 50, Code 2018, is 17 amended to read as follows: 18 50. -Sales- or -sale- means any transfer, exchange, or 19 barter, conditional or otherwise, in any manner or by any means 20 whatsoever, for consideration, including but not limited to any 21 such transfer, exchange, or barter on a subscription basis. 22 Sec. 140. Section 423.1, Code 2018, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION. 55A. "Sold at retail in the state- and 25 other references to sales -in the state"" or "in this state"" 26 includes but is not limited to sales sourced to this state 27 under this chapter. 28 Sec. 141. Section 423.1, Code 2018, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION. 55B. a. "Specified digital products- means 31 electronically transferred digital audio-visual works, digital 32 audio works, digital books, or other digital products. 33 b. For purposes of this subsection: 34 (1) "Digital audio-visual works- means a series of related 35 images which, when shown in succession, impart an impression of LSB 5452XC (3) 87 -57- mm/jh Page51'8f 291 S.F. 1 motion, together with accompanying sounds, if any. 2 (2) -Digital audio works- means works that result from 3 the fixation of a series of musical, spoken, or other sounds, 4 including but not limited to ringtones. For purposes of this 5 subparagraph, "ringtones"" means digitized sound files that are 6 downloaded onto a device and that may be used to alert the 7 customer with respect to a communication. 8 (3) -Digital books"" means works that are generally 9 recognized in the ordinary and usual sense as books. 10 (4) Electronically transferred"" means obtained or accessed 11 by the purchaser by means other than tangible storage media, 12 including but not limited to a specified digital product 13 purchased through a computer software application, commonly 14 referred to as an in -app purchase, or through another specified 15 digital product, or through any other means. 16 (5) -Other digital products"" means greeting cards, images, 17 video or electronic games or entertainment, news or information 18 products, and computer software applications. 19 Sec. 142. Section 423.1, Code 2018, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION. 57A. "Subscription"" means any arrangement 22 in which a person has the right or ability to access, 23 receive, use, obtain, purchase, or otherwise acquire tangible 24 personal property, specified digital products, or services 25 on a permanent or less than permanent basis, regardless of 26 whether the person actually accesses, receives, uses, obtains, 27 purchases, or otherwise acquires such tangible personal 28 property, specified digital product, or service. 29 Sec. 143. Section 423.1, subsections 62, 63, and 64, Code 30 2018, are amended to read as follows: 31 62. "Use"" means and includes the exercise by any person of 32 any right or power over or access to tangible personal property 33 or a specified digital product incident to the ownership of 34 that property, or any right or power over or access to the 35 product or result of a service. A retailer's or building LSB 5452XC (3) 87 -58- mm/jh Page5i33Bf 291 S.F. 1 contractor's sale of manufactured housing for use in this 2 state, whether in the form of tangible personal property or 3 of realty, is a use of that property for the purposes of this 4 chapter. 5 63. -Use tax"" means the tax levied under subchapter III of 6 this chapter for which the retailer collects and remits tax to 64. -User"" means the immediate recipient of the personal property or services who is entitled to exercise a right of or power over or access to the personal property, or the product or result of such services. Sec. 144. Section 423.2, subsection 1, paragraph a, subparagraph (1), Code 2018, is amended to read as follows: (1) Sales of engraving, photography, retouching, printing, and binding services. Sec. 145. Section 423.2, subsection 6, Code 2018, is amended to read as follows: 6. The sales price of any of the following enumerated services is subject to the tax imposed by subsection 5: a. altcration Alteration and garment repair; armored. b. Armored car; vehicle. c. Vehicle repair; battery. d. Battery, tire, and allied, investment. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 e. Investment counseling; f. Service charges of all financial institutions; barbcr. For the purposes of this paragraph, "financial institutions"" means all national banks, federally chartered savings and loan associations, federally chartered savings banks, federally chartered credit unions, banks organized under chapter 524, credit unions organized under chapter 533, and all banks, savings banks, credit unions, and savings and loan associations chartered or otherwise created under the laws of any state and doing business in Iowa. g. Barber and beauty; boat. h. Boat repair; vehicle. LSB 5452XC (3) 87 -59- mm/jh Page54)9VBf 291 S.F. 1 1. Vehicle wash and wax, campgrounds, carpentry, roof. 2 j. Campgrounds. 3 k. Carpentry. 4 1. Roof, shingle, and glass repair; dancc. 5 m. Dance schools and dance studios; dating. 6 n. Dating services; dry. 7 o. Dry cleaning, pressing, dyeing, and laundering excluding 8 the use of self -pay washers and dryers; electrical. 9 p. Electrical and electronic repair and installation; 10 excavating. 11 q. Excavating and gradingm. 12 r. Farm implement repair of all kinds; flying. 13 s. Flying service, furniturc. 14 t, Furniture, rug, carpet, and upholstery repair and 15 cleaning; fur. 16 u, Fur storage and repair; golf. 17 v. Golf and country clubs and all commercial recreation; 18 ttun. 19 w. Gun and camera repair; house. 20 x. House and building moving; household. 21 y. Household appliance, television, and radio repair; 22 janitorial. 23 z. Janitorial and building maintenance or cleaning, jewelry. 24 aa. Jewelry and watch repair; lawn. 25 ab. Lawn care, landscaping, and tree trimming and removal;. 26 ac. Personal transportation service, including but not 27 limited to taxis, driver service, ride sharing service, rides 28 for hire, and limousine service, including driver, machine. 29 ad. Machine operator; machine. 30 ae. Machine repair of all kinds; motor. 31 af. Motor repair; motorcycle. 32 ag, Motorcycle, scooter, and bicycle repair; oilers. 33 ah. Oilers and lubricators; officc. 34 ai. Office and business machine repair; painting. 35 aj. Painting, papering, and interior decorating; parking. LSB 5452XC (3) 87 -60- mm/jh Page61/Bf 291 S.F. 1 ak. Parking facilities; pay. 2 al. Pay television; pct, including but not limited to 3 streaming video, video on -demand, and pay-per-view. 4 am. Pet grooming; pips. 5 an. Pipe fitting and plumbing; wood. 6 ao. Wood preparation; executivc. 7 ap. Executive search agencies; private. 8 aq. Private employment agencies, excluding services for 9 placing a person in employment where the principal place of 10 employment of that person is to be located outside of the 11 state; reflexology; security. 12 ar. Reflexology. 13 as. Security and detective services, excluding private 14 security and detective services furnished by a peace officer 15 with the knowledge and consent of the chief executive officer 16 of the peace officer's law enforcement agency; 3cwagc. 17 at. Sewage services for nonresidential commercial 18 operations; . 19 au. Sewing and stitching; shoe. 20 ay. Shoe repair and shoeshine; sign. 21 aw. Sign construction and installation; storage. 22 ax. Storage of household goods, mini -storage, and 23 warehousing of raw agricultural products; swimming. 24 ay. Swimming pool cleaning and maintenance; tanning. 25 az. Tanning beds or salons; taxidermy. 26 ba. Taxidermy services; telephone. 27 bb. Telephone answering service; test. 28 bc. Test laboratories, including mobile testing laboratories 29 and field testing by testing laboratories, and excluding tests 30 on humans or animals and excluding environmental testing 31 services, termite. 32 bd. Termite, bug, roach, and pest eradicators; tin. 33 be. Tin and sheet metal repair; transportation. 34 bf. Transportation service consisting of the rental of 35 recreational vehicles or recreational boats, or the rental of LSB 5452XC (3) 87 -61- mm/jh Page61Bf 291 S.F. 1 vehicles subject to registration which are registered for a 2 gross weight of thirteen tons or less for a period of sixty 3 days or less, or the rental of aircraft for a period of sixty 4 days or less;. 5 bg, Turkish baths, massage, and reducing salons, excluding 6 services provided by massage therapists licensed under chapter 7 152C; watcr. 8 bh. Water conditioning and softening; weighing; welding; 9 well. 10 bi. Weighing. 11 bj. Welding. 12 bk. Well drilling, wrapping. 13 bi, Wrapping, packing, and packaging of merchandise other 14 than processed meat, fish, fowl, and vegetables; wrecking. 15 bm. Wrecking service; wrecker. 16 bn, Wrecker and towing. 17 b. For the purposes of this subsection, "financial 18 institutions- m ans all national bank3, federally chartcrcd 19 -savings and loan associations, federally chartered savings 20 bank3, federally chartcrcd crcdit unions, bank3 organizcd undcr 21 chapter 524, crcdit unions organized undcr chapter 533, and 22 all banks, savings banks, credit unions, and savings and loan 23 - - - - - - - - - 24 any state and doing business in Iowa. 25 bo. Photography. 26 bp. Retouching. 27 bq, Storage of tangible or electronic files, documents, or 28 other records. 29 br. Information services. 30 bs. Services arising from or related to installing, 31 maintaining, servicing, repairing, operating, upgrading, or 32 enhancing specified digital products. 33 bt. Video game services and tournaments. 34 bu. Software as a service. 35 Sec. 146. Section 423.2, subsection 8, Code 2018, is amended LSB 5452XC (3) 87 -62- mm/jh Page61?Bf 291 S.F. 1 by adding the following new paragraph: 2 NEW PARAGRAPH. d. A transaction that otherwise meets 3 the definition of "bundled transaction"" as defined in this 4 subsection is not a bundled transaction if it is any of the 5 following: 6 (1) The retail sale of tangible personal property and a 7 service where the tangible personal property is essential 8 to the use of the service, and is provided exclusively in 9 connection with the service, and the true object of the 10 transaction is the service. 11 (2) The retail sale of services where one service is 12 provided that is essential to the use or receipt of a second 13 service and the first service is provided exclusively in 14 connection with the second service and the true object of the 15 transaction is the second service. 16 (3) (a) A transaction that includes taxable products and 17 nontaxable products and the purchase price or sales price of 18 the taxable products is de minimis. 19 (b) For purposes of this subparagraph, "de minimis" means 20 the seller's purchase or sales price of the taxable products 21 is ten percent or less of the total purchase price or sales 22 price of the bundled products. Sellers shall use either the 23 purchase price or the sale price of the products to determine 24 if the taxable products are de minimis. Sellers may not use 25 a combination of the purchase price and sales price of the 26 products to determine if the taxable products are de minimis. 27 (4) The retail sale of exempt tangible personal property and 28 taxable tangible personal property where all of the following 29 apply: 30 (a) The transaction includes food and food ingredients, 31 drugs, durable medical equipment, mobility enhancing equipment, 32 prosthetic devices, or medical supplies. 33 (b) The seller's purchase price or sales price of the 34 taxable tangible personal property is fifty percent or less 35 of the total purchase price or sales price of the bundled LSB 5452XC (3) 87 -63- mm/jh Page62 8f 291 S.F. 1 tangible personal property. Sellers may not use a combination 2 of the purchase price and sales price of the tangible personal 3 property when making the fifty percent determination for a 4 transaction. 5 Sec. 147. Section 423.2, Code 2018, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION. 9A. a. A tax of six percent is imposed on 8 the sales price of specified digital products sold at retail 9 in the state. The tax applies whether the purchaser obtains 10 permanent use or less than permanent use of the specified 11 digital product, whether the sale is conditioned or not 12 conditioned upon continued payment from the purchaser, and 13 whether the sale is on a subscription basis or is not on a 14 subscription basis. 15 b. The sale of a digital code that may be used to obtain 16 or access a specified digital product shall be taxed in the 17 same manner as the specified digital product. For purposes 18 of this paragraph, -digital code"" means a method that permits 19 a purchaser to obtain or access at a later date a specified 20 digital product. 21 Sec. 148. Section 423.2, subsections 10, 11, and 12, Code 22 2018, are amended by striking the subsections. 23 Sec. 149. NEW SECTION. 423.2A Deposit and transfer of 24 revenues. 25 1. a. All revenues arising under the operation of the 26 provisions of this subchapter II shall be deposited into the 27 general fund of the state. 28 b. Subsequent to the deposit into the general fund of 29 the state, the director shall credit an amount equal to the 30 product of the sales tax rate imposed in section 423.2 times 31 the sales price of the tangible personal property or services 32 furnished to purchasers at a baseball and softball complex that 33 has received an award under section 15F.207 and that meets 34 the qualifications of section 423.4, subsection 10, into the 35 baseball and softball complex sales tax rebate fund created LSB 5452XC (3) 87 -64- mm/jh Page62613Bf 291 S.F. 1 under section 423.4, subsection 10, paragraph 'e". The director 2 shall credit the moneys beginning the first day of the quarter 3 following July 1, 2016. This paragraph is repealed thirty 4 days following the date on which five million dollars in total 5 rebates have been provided under section 423.4, subsection 10. 6 2. Subsequent to the deposit into the general fund of the 7 state pursuant to subsection 1, the department shall do the 8 following in the order prescribed: 9 a. Transfer the revenues collected under chapter 423B. 10 b. Transfer from the remaining revenues the amounts required 11 under Article VII, section 10, of the Constitution of the State 12 of Iowa to the natural resources and outdoor recreation trust 13 fund created in section 461.31, if applicable. 14 c. Transfer one-sixth of the remaining revenues to the 15 secure an advanced vision for education fund created in section 16 423F.2. This paragraph 'c" is repealed December 31, 2029. 17 d. Transfer to the baseball and softball complex sales tax 18 rebate fund that portion of the sales tax receipts described 19 in subsection 1, paragraph 'b", remaining after the transfers 20 required under paragraphs -.3", "b"", and -c- of this subsection 21 2. This paragraph is repealed thirty days following the date 22 on which five million dollars in total rebates have been 23 provided under section 423.4, subsection 10. 24 e. Beginning the first day of the calendar quarter 25 beginning on the reinvestment district's commencement date, 26 subject to remittance limitations established by the economic 27 development authority board pursuant to section 15J.4, 28 subsection 3, transfer to a district account created in the 29 state reinvestment district fund for each reinvestment district 30 established under chapter 15J, the amount of new state sales 31 tax revenue, determined in section 15J.5, subsection 1, 32 paragraph "b", in the district, that remains after the prior 33 transfers required under this subsection 2. Such transfers 34 shall cease pursuant to section 15J.8. 35 f. Subject to the limitation on the calculation and LSB 5452XC (3) 87 -65- mm/jh Page668f 291 S.F. 1 deposit of sales tax increment revenues in section 418.12, 2 beginning the first day of the quarter following adoption 3 of the resolution pursuant to section 418.4, subsection 3, 4 paragraph "d"", transfer to the account created in the sales tax 5 increment fund for each governmental entity approved to use 6 sales tax increment revenues under chapter 418, that portion 7 of the increase in sales tax revenue, determined in section 8 418.11, subsection 2, paragraph "d"", in the applicable area of 9 the governmental entity, that remains after the other transfers 10 required under this subsection 2. 11 g. Beginning the first day of the quarter following July 12 1, 2014, transfer to the raceway facility tax rebate fund 13 created in section 423.4, subsection 11, paragraph "e"", that 14 portion of the sales tax receipts collected and remitted upon 15 sales of tangible personal property or services furnished by 16 retailers at a raceway facility meeting the qualifications of 17 section 423.4, subsection 11, that remains after the transfers 18 required in paragraphs 'a"" through "f" of this subsection 19 2. This subparagraph is repealed June 30, 2025, or thirty 20 days following the date on which an amount of total rebates 21 specified in section 423.4, subsection 11, paragraph "c"", 22 subparagraph (4), subparagraph division (a) or (b), whichever 23 is applicable, has been provided or thirty days following the 24 date on which rebates cease as provided in section 423.4, 25 subsection 11, paragraph "c", subparagraph (5), whichever is 26 earliest. 27 3. Of the amount of sales tax revenue actually transferred 28 per quarter pursuant to subsection 2, paragraphs "e" and "f"", 29 the department shall retain an amount equal to the actual cost 30 of administering the transfers under subsection 2, paragraphs 31 "e"" and "f", or twenty-five thousand dollars, whichever is 32 less. The amount retained by the department pursuant to this 33 subsection shall be divided pro rata each quarter between 34 the amounts that would have been transferred pursuant to 35 subsection 2, paragraphs "e" and "f"", without the deduction LSB 5452XC (3) 87 -66- mm/jh Page6 8f 291 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 S.F. made by operation of this subsection. Revenues retained by the department pursuant to this subsection shall be considered repayment receipts as defined in section 8.2. Sec. 150. Section 423.3, subsections 1, 2, and 17, Code 2018, are amended to read as follows: 1. The sales price from sales of tangible personal property, specified digital products, and services furnished which this state is prohibited from taxing under the Constitution or laws of the United States or under the Constitution of this state. 2. The sales price of sales for resale of tangible personal property or taxable services, or for resale of tangible personal property in connection with the furnishing of taxable services, except for oales, the following: a. Sales, other than leases or rentals, which are sales to nonqualified and replacement and used in the dealers of machinery, equipment, attachments, parts specifically enumerated in subsection 37 manner described in subsection 37 or thc. For purposes of this paragraph, -nonqualified dealer" means any dealer who is not a party to a dealership agreement, as those terms are defined in section 322F.1. b. The purchase of tangible personal property, the leasing or rental of which is exempted from tax by subsection 49. 17. The sales price of all goods, wares, or mcrchandi3c, tangible personal property, specified digital products, or services, used for educational purposes sold to any private nonprofit educational institution in this state. For the purpose of this subsection, "educational institution- means an institution which primarily functions as a school, college, or university with students, faculty, and an established curriculum. The faculty of an educational institution must be associated with the institution and the curriculum must include basic courses which are offered every year. 'Educational institution"" includes an institution primarily functioning as a library. 35 Sec. 151. Section 423.3, subsection 3, Code 2018, is amended LSB 5452XC (3) 87 -67- mm/jh Page628f 291 S.F. 1 by striking the subsection and inserting in lieu thereof the 2 following: 3 3. a. The sales price of tangible personal property used 4 primarily in agricultural production by a commercial farmer 5 if the cost of the tangible personal property is properly 6 claimed as a business deduction for purposes of chapter 422 and 7 the tangible personal property is used on land eligible for 8 the agricultural land credit created in chapter 426. If the 9 other requirements of this subsection are satisfied, "tangible 10 personal property"" includes but is not limited to the following: 11 (1) Farm machinery and equipment, including supplies, 12 replacement parts, and auxiliary attachments which improve the 13 performance, safety, operation, or efficiency of the machinery 14 and equipment. 15 (2) Agricultural breeding livestock, domesticated fowl, 16 preserve whitetail as defined in section 484C.1, and draft 17 horses. 18 b. Vehicles subject to registration, as defined in section 19 423.1, and replacement parts for such vehicles, are not exempt 20 under paragraph -a"" of this subsection. 21 Sec. 152. Section 423.3, subsections 3A, 4, 5, 6, 7, 8, 22 9, 10, 11, 12, 13, 14, 15, and 16, Code 2018, are amended by 23 striking the subsections. 24 Sec. 153. Section 423.3, subsection 18, unnumbered 25 paragraph 1, Code 2018, is amended to read as follows: 26 The sales price of tangible personal property or specified 27 digital products sold, or of services furnished, to the 28 following nonprofit corporations: 29 Sec. 154. Section 423.3, subsections 20, 21, 22, 23, 26, 27, 30 28, and 31, Code 2018, are amended to read as follows: 31 20. The sales price of tangible personal property or 32 specified digital products sold, or of services furnished, to 33 nonprofit legal aid organizations. 34 21. The sales price of goods, wares, or merchandise, 35 tangible personal property, of specified digital products, LSB 5452XC (3) 87 -68- mm/jh Page668f 291 S.F. 1 or of services, used for educational, scientific, historic 2 preservation, or aesthetic purpose sold to a nonprofit private 3 museum. 4 22. The sales price from sales of goods, ware3, or 5 _chand se, tangible personal property, of specified digital 6 products, or from services furnished, to a nonprofit private 7 art center to be used in the operation of the art center. 8 23. The sales price of tangible personal property or 9 specified digital products sold, or of services furnished, by a 10 fair organized under chapter 174. 11 26. The sales price of tangible personal property or 12 specified digital products sold, or of services furnished, to a 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 statewide nonprofit organ procurement organization, as defined in section 142C.2. 27. The sales price of tangible specified digital products sold, or personal property or of services furnished, to a nonprofit hospital licensed pursuant to chapter 135B to be used in the operation of the hospital. 28. The sales price of tangible personal property or specified digital products sold, or of services furnished, to a freestanding nonprofit hospice facility which operates a hospice program as defined in 42 C.F.R. ch. IV, §418.3, which property or services are to be used in the hospice program. 31. The sales price of goods, ware3, or merchandiao tangible personal property or specified digital products sold to and of services furnished, and used for public purposes sold to a tax -certifying or tax -levying body of the state or a governmental subdivision of the state, including regional transit systems, as defined in section 324A.1, the state board of regents, department of human services, state department of transportation, any municipally owned solid waste facility which sells all or part of its processed waste as fuel to a municipally owned public utility, and all divisions, boards, commissions, agencies, or instrumentalities of state, federal, county, or municipal government which have no earnings going to LSB 5452XC (3) 87 -69- mm/jh Page620VBf 291 S.F. 1 the benefit of an equity investor or stockholder, except any 2 of the following: 3 (1) a. The sales price of goods, wares, or merchandise 4 tangible personal property or specified digital products sold 5 to, or of services furnished, and used by or in connection with 6 the operation of any municipally owned public utility engaged 7 in selling gas, electricity, heat, pay television service, or 8 communication service to the general public. 9 (2) b. The sales price of furnishing of sewage services to 10 a county or municipality on behalf of nonresidential commercial 11 operations. 12 (3) c. The furnishing of solid waste collection and 13 disposal service to a county or municipality on behalf of 14 nonresidential commercial operations located within the county 15 or municipality. 16 b, The exemption provided by this subsection shall also 17 apply to all such sales of goods, wares, or merchandise or of 18 ocrvices furnished and subject to use tax. 19 Sec. 155. Section 423.3, subsection 32, unnumbered 20 paragraph 1, Code 2018, is amended to read as follows: 21 The sales price of tangible personal property or specified 22 digital products sold, or of services furnished, by a county or 23 city. This exemption does not apply to any of the following: 24 Sec. 156. Section 423.3, subsection 36, unnumbered 25 paragraph 1, Code 2018, is amended to read as follows: 26 The sales price from sales of tangible personal property 27 or specified digital products or of the sale or furnishing of 28 electrical energy, natural or artificial gas, or communication 29 service to another state or political subdivision of another 30 state if the other state provides a similar reciprocal 31 exemption for this state and political subdivision of this 32 state. 33 Sec. 157. Section 423.3, subsection 39, paragraph a, 34 subparagraphs (1) and (2), Code 2018, are amended to read as 35 follows: LSB 5452XC (3) 87 -70- mm/jh Page72€Bf 291 S.F. 1 (1) Sales of tangible personal property or specified 2 digital products, or the furnishing of services, of a 3 nonrecurring nature, by the owner, if the seller, at the time 4 of the sale, is not engaged for profit in the business of 5 selling tangible personal property, specified digital products, 6 or services taxed under section 423.2. 7 (2) The sale of all or substantially all of the tangible 8 personal property, or specified digital products, or services 9 held or used by a seller in the course of the seller's trade or 10 business for which the seller is required to hold a sales tax 11 permit when the seller sells or otherwise transfers the trade 12 or business to another person who shall engage in a similar 13 trade or business. 14 Sec. 158. Section 423.3, subsection 47, paragraph d, 15 subparagraph (4), Code 2018, is amended by striking the 16 subparagraph and inserting in lieu thereof the following: 17 (4) (a) 'Manufacturer"" means a business that primarily 18 purchases, receives, or holds personal property of any 19 description for the purpose of adding to its value by a process 20 of manufacturing with a view to selling the property for gain 21 or profit. 22 (b) 'Manufacturer"" includes contract manufacturers. A 23 contract manufacturer is a manufacturer that otherwise falls 24 within the definition of manufacturer, except that a contract 25 manufacturer does not sell the tangible personal property 26 the contract manufacturer processes on behalf of other 27 manufacturers. 28 (c) For purposes of this subparagraph, "business"" means 29 those businesses conducted for profit, but excludes professions 30 and occupations and nonprofit organizations. 31 (d) For purposes of this subparagraph, "manufacturing"" 32 means those activities commonly understood within the ordinary 33 meaning of the term, and shall include: 34 (i) Refining. 35 (ii) Purifying. LSB 5452XC (3) 87 -71- mm/jh Page72Bf 291 S.F. 1 (iii) Combining of different materials. 2 (iv) Packing of meats. 3 (v) Activities subsequent to the extractive process of 4 quarrying or mining, such as crushing, washing, sizing, or 5 blending of aggregate materials. 6 (e) 'Manufacturer- does not include persons who are not 7 commonly understood as manufacturers, including but not limited 8 to persons engaged in any of the following activities: 9 (i) Construction contracting. 10 (ii) Repairing tangible personal property or real property. 11 (iii) Providing health care. 12 (iv) Farming, including cultivating agricultural products 13 and raising livestock. 14 (v) Transporting for hire. 15 (vi) Making retail sales to consumers. 16 Sec. 159. Section 423.3, subsection 63, Code 2018, is 17 amended to read as follows: 18 63. The sales price from the sale of tangible personal 19 property, specified digital products, or services which will be 20 given as prizes to players in games of skill, games of chance, 21 raffles, and bingo games as defined in chapter 99B. 22 Sec. 160. Section 423.3, subsections 65, 66, and 67, Code 23 2018, are amended by striking the subsections. 24 Sec. 161. Section 423.3, subsection 78, paragraph a, 25 unnumbered paragraph 1, Code 2018, is amended to read as 26 follows: 27 The sales price from oalc3 or rcntal the sale of tangible 28 personal property, specified digital products, or services 29 rendered by any entity where the profits from the -aales or 30 rcntal sale of the tangible personal property, specified 31 digital products, or services rendered, are used by or donated 32 to a nonprofit entity that is exempt from federal income 33 taxation pursuant to section 501(c)(3) of the Internal Revenue 34 Code, a government entity, or a nonprofit private educational 35 institution, and where the entire proceeds from the oalc3, LSB 5452XC (3) 87 -72- mm/jh Page72 8f 291 S.F. 1 rental, sale or services are expended for any of the following 2 purposes: 3 Sec. 162. Section 423.3, subsection 79, Code 2018, is 4 amended to read as follows: 5 79. The sales price from the sale or rental of tangible 6 personal property or specified digital products, or from 7 services furnished, to a recognized community action agency as 8 provided in section 216A.93 to be used for the purposes of the 9 agency. 10 Sec. 163. Section 423.3, Code 2018, is amended by adding the 11 following new subsections: 12 NEW SUBSECTION. 103. a. The sales price of specified 13 digital products sold, and of enumerated services described in 14 section 423.2, subsection 6, paragraphs �bq, "br"", "bs"", and 15 'bu""furnished, to a commercial enterprise for use exclusively 16 by the commercial enterprise. The use of a specified digital 17 product or service fails to qualify as a use exclusively by the 18 commercial enterprise if its use for noncommercial purposes is 19 more than de minimis. 20 b. For purposes of this subsection: 21 (1) -Commercial enterprise means the same as defined in 22 section 423.3, subsection 47, paragraph "d, subparagraph (1). 23 (2) "De minimis- and "noncommercial purposes- shall be 24 defined by the director by rule. 25 NEW SUBSECTION. 104. The sales price of specified digital 26 products sold to a non -end user. For purposes of this 27 subsection, "non -end user"" means a person who receives by 28 contract a specified digital product for further commercial 29 broadcast, rebroadcast, transmission, retransmission, 30 licensing, relicensing, distribution, redistribution, or 31 exhibition of the product, in whole or in part, to another 32 person. 33 NEW SUBSECTION. 105. The sales price from the sale of a 34 grain bin or materials used to construct a grain bin. For 35 purposes of this subsection, -grain bin"" means property that is LSB 5452XC (3) 87 -73- mm/jh Page72ef 291 S.F. 1 vented and covered with corrugated metal or similar material, 2 and that is primarily used to hold loose grain for drying or 3 storage. 4 Sec. 164. Section 423.4, subsection 3, unnumbered paragraph 5 1, Code 2018, is amended to read as follows: 6 A relief agency may apply to the director for refund of the 7 amount of sales or use tax imposed and paid upon sales to it 8 of any goods, wares, merchandise, tangible personal property 9 or specified digital products, or services furnished, used for 10 free distribution to the poor and needy. 11 Sec. 165. Section 423.4, subsection 3, paragraph a, 12 subparagraph (1), Code 2018, is amended to read as follows: 13 (1) On forms furnished by the department, and filed within 14 the time as the director shall provide by rule, the relief 15 agency shall report to the department the total amount or 16 amounts, valued in money, expended directly or indirectly 17 for goods, wares, merchandise, tangible personal property or 18 specified digital products, or services furnished, used for 19 free distribution to the poor and needy. 20 Sec. 166. Section 423.4, subsection 10, paragraph e, Code 21 2018, is amended to read as follows: 22 e. There is established within the state treasury under the 23 control of the department a baseball and softball complex sales 24 tax rebate fund consisting of the amount of state sales tax 25 revenues transferred pursuant to section 423.2, subscction 11, 26 paragraph "b", subparagraph (4) 423.2A, subsection 2, paragraph 27 -d"'. An account is created within the fund for each baseball 28 and softball complex receiving an award under section 15F.207 29 and meeting the qualifications of this subsection. Moneys 30 in the fund shall only be used to provide rebates of state 31 sales tax pursuant to this subsection, and only the state sales 32 tax revenues in the baseball and softball complex rebate fund 33 are subject to rebate under this subsection. The amount of 34 rebates paid from each baseball and softball complex's account 35 within the fund shall not exceed the amount of the award under LSB 5452XC (3) 87 -74- mm/jh Page721138f 291 S.F. 1 section 15F.207, and not more than five million dollars in 2 total rebates shall be paid from the fund. Any moneys in the 3 fund which represent state sales tax revenue for which the time 4 period in paragraph "c"for receiving a rebate has expired, 5 or which otherwise represent state sales tax revenue that has 6 become ineligible for rebate pursuant to this subsection, shall 7 immediately revert to the general fund of this state. 8 Sec. 167. Section 423.4, subsection 11, paragraph b, 9 subparagraph (1), Code 2018, is amended to read as follows: 10 (1) Sales tax imposed and collected by retailers upon 11 sales of tangible personal property or services furnished to 12 purchasers at the raceway facility. Notwithstanding the state 13 sales tax imposed in section 423.2, a sales tax rebate issued 14 pursuant to this subparagraph shall not exceed the amounts 15 transferred to the raceway facility tax rebate fund pursuant to 16 section 423.2, Subs-cction 11, paragraph "b", subparagraph (7) 17 423.2A, subsection 2, paragraph "g". 18 Sec. 168. Section 423.4, subsection 11, paragraph b, 19 subparagraph (2), subparagraph division (c), Code 2018, is 20 amended to read as follows: 21 (c) Notwithstanding the state sales tax imposed in section 22 423.2, a sales tax rebate issued pursuant to this subparagraph 23 shall not exceed the amounts remaining after the transfers 24 required under section 423.2, 3ub3ection 11, paragraph 25 oubparagraph3 (1) through (6) 423.2A, subsection 2, paragraphs 26 'a- through 'f", have been made from the total amount of sales 27 tax for which the rebate is requested. 28 Sec. 169. Section 423.4, subsection 11, paragraph e, Code 29 2018, is amended to read as follows: 30 e. There is established within the state treasury under 31 the control of the department a raceway facility tax rebate 32 fund consisting of the amount of state sales tax revenues 33 transferred pursuant to section 423.2, subsection 11, paragraph 34 b, Subparagraph (7) 423.2A, subsection 2, paragraph "g". An 35 account is created within the fund for each raceway facility LSB 5452XC (3) 87 -75- mm/jh Page72ef 291 S.F. 1 meeting the qualifications of this subsection. Moneys in the 2 fund shall only be used to provide rebates of state sales tax 3 pursuant to paragraph "b", subparagraph (1). The total amount 4 of rebates paid from the fund shall not exceed the amount 5 specified in paragraph -c"", subparagraph (4), subparagraph 6 division (a) or (b), whichever is applicable. Any moneys in 7 the fund which represent state sales tax revenue for which the 8 time period in paragraph "c"for receiving a rebate has expired, 9 or which otherwise represent state sales tax revenue that has 10 become ineligible for rebate pursuant to this subsection shall 11 immediately revert to the general fund of the state. 12 Sec. 170. Section 423.5, subsection 1, paragraph a, Code 13 2018, is amended to read as follows: 14 a. The use in this state of tangible personal property 15 as defined in section 423.1, including aircraft subject to 16 registration under section 328.20, purchased for use in this 17 state. For the purposes of this subchapter, the furnishing 18 or use of the following services is also treated as the use 19 of tangible personal property: optional service or warranty 20 contracts, except residential service contracts regulated under 21 chapter 523C, vulcanizing, recapping, or retreading services, 22 engraving, photography, rctouching, printing, or binding 23 services, and communication service when furnished or delivered 24 to consumers or users within this state. 25 Sec. 171. Section 423.5, subsection 1, paragraph d, Code 26 2018, is amended to read as follows: 27 d. Purchases of tangible personal property or specified 28 digital products made from the government of the United States 29 or any of its agencies by ultimate consumers shall be subject 30 to the tax imposed by this section. Services purchased from 31 the same source or sources shall be subject to the service 32 tax imposed by this subchapter and apply to the user of the 33 services. 34 Sec. 172. Section 423.5, subsection 1, Code 2018, is amended 35 by adding the following new paragraph: LSB 5452XC (3) 87 -76- mm/jh Page7Nef 291 S.F. 1 NEW PARAGRAPH. f. (1) The use in this state of specified 2 digital products. The tax applies whether the purchaser 3 obtains permanent use or less than permanent use of the 4 specified digital product, whether the use is conditioned or 5 not conditioned upon continued payment from the purchaser, 6 and whether the use is on a subscription basis or is not on a 7 subscription basis. (2) The use of a digital code that may be used to obtain or access a specified digital product shall be taxed in the same manner as the specified digital product. For purposes of this subparagraph, "digital code"" means the same as defined in 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 section Sec. to read 423.2, subsection 9A. 173. Section 423.5, subsection 3, Code 2018, is amended as follows: 3. For the purpose of the proper administration of the use tax and to prevent its evasion, evidence that tangible personal property was or specified digital products were sold by any person for delivery in this state shall be prima facie evidence that such tangible personal property waa or specified digital products were sold for use in this state. Sec. 174. Section 423.5, subsection 4, Code 2018, is amended by striking the subsection. Sec. 175. Section 423.6, unnumbered paragraph 1, Code 2018, is amended to read as follows: The use in this state of the following tangible personal property, specified digital products, and services from the tax imposed by this Sec. 176. Section 423.6, 2018, are amended to read as subchapter: subsections follows: 1, 2, 4, is exempted and 6, Code 1. Tangible personal property, specified digital products, and enumerated services, the sales price from the sale of which are required to be included in the measure of the sales tax, if that tax has been paid to the department or the retailer. This exemption does not include vehicles subject to registration or subject only to the issuance of a certificate of title. LSB 5452XC (3) 87 -77- mm/jh Page72 8f 291 S.F. 1 2. The sale of tangible personal property, specified 2 digital products, or the furnishing of services in the regular 3 course of business. 4 4. All articles of tangible personal property and all 5 specified digital products brought into the state of Iowa by a 6 nonresident individual for the individual's use or enjoyment 7 while within the state. 8 6. Tangible personal property, specified digital products, 9 or services the sales price of which is exempt from the sales 10 tax under section 423.3, except section 423.3, subsections 39 11 and 73, as it relates to the sale, but not the lease or rental, 12 of vehicles subject only to the issuance of a certificate of 13 title and as it relates to aircraft subject to registration 14 under section 328.20. 15 Sec. 177. Section 423.14, subsection 2, paragraphs b and c, 16 Code 2018, are amended to read as follows: 17 b. The tax upon the use of all tangible personal property 18 and specified digital products other than that enumerated in 19 paragraph "a, which is sold by a seller who is a retailer 20 maintaining a placc of busincss in this state, or by such othcr 21 22 ocction 423.30 or its agent that is not otherwise required 23 to collect sales tax under the provisions of this chapter, 24 shall be collected by the retailer or agent and remitted to the 25 department, pursuant to the provisions of paragraph "e", and 26 sections 423.24, 423.29, 423.30, 423.32, and 423.33. 27 c. The tax upon the use of all tangible personal property 28 and specified digital products not paid pursuant to paragraphs 29 -a"" and "b shall be paid to the department directly by any 30 person using the property within this state, pursuant to the 31 provisions of section 423.34. 32 Sec. 178. NEW SECTION. 423.14A Persons required to collect 33 sales and use tax — supplemental conditions, requirements, and 34 responsibilities. 35 1. For purposes of this section, -Iowa sales"" means sales LSB 5452XC (3) 87 -78- mm/jh Page72 f 291 S.F. 1 of tangible personal property, services, or specified digital 2 products sourced to this state pursuant to section 423.15, 3 423.16, 423.17, 423.19, or 423.20, or that are otherwise sold 4 in this state or for delivery into this state. 5 2. In addition to and not in lieu of any application of 6 this chapter to sellers who are retailers and sellers who are 7 retailers maintaining a place of business in this state, any 8 person described in subsection 3, or the person's agents, 9 shall be considered a retailer in this state and a retailer 10 maintaining a place of business in this state for purposes of 11 this chapter on or after January 1, 2019, and shall be subject 12 to all requirements of this chapter imposed on retailers and 13 retailers maintaining a place of business in this state, 14 including but not limited to the requirement to collect and 15 remit sales and use taxes pursuant to sections 423.14 and 16 423.29, and local option taxes under chapter 423B. 17 3. a. A retailer that has gross revenue from Iowa sales 18 equal to or exceeding one hundred thousand dollars for the 19 immediately preceding calendar year or the current calendar 20 year. 21 b. A retailer that makes Iowa sales in two hundred or more 22 separate transactions for the immediately preceding calendar 23 year or the current calendar year. 24 c. (1) A retailer that owns, licenses, or uses software 25 or data files that are installed or stored on property used 26 in this state. For purposes of this subparagraph, "software 27 or data files"" include but are not limited to software that is 28 affirmatively downloaded by a user, software that is downloaded 29 as a result of the use of a website, preloaded software, and 30 cookies. 31 (2) A retailer that uses in-state software to make Iowa 32 sales. For purposes of this subparagraph, "in-state software"" 33 means computer software that is stored on property located in 34 this state or that is distributed within this state for the 35 purpose of facilitating a sale by the retailer. LSB 5452XC (3) 87 -79- mm/jh Page72Wef 291 S.F. 1 (3) A retailer that provides, or enters into an agreement 2 with another person to provide, a content distribution network 3 in this state to facilitate, accelerate, or enhance the 4 delivery of the retailer's internet site to purchasers. For 5 purposes of this subparagraph, -content distribution network"" 6 means a system of distributed servers that deliver internet 7 sites and other internet content to a user based on the 8 geographic location of the user, the origin of the internet 9 site or internet content, and a content delivery server. 10 (4) This paragraph "c- shall not apply to a retailer that 11 has gross revenue from Iowa sales of less than one hundred 12 thousand dollars for the immediately preceding calendar year 13 or the current calendar year. 14 d, (1) A retailer that makes Iowa sales through a 15 marketplace provider. This subparagraph shall not apply to a 16 retailer that has gross revenue from Iowa sales of less than 17 ten thousand dollars for the immediately preceding calendar 18 year or the current calendar year. 19 (2) A marketplace provider that makes or facilitates Iowa 20 sales for one or more retailers equal to or exceeding one 21 hundred thousand dollars, or in two hundred or more separate 22 transactions, for the immediately preceding calendar year or 23 the current calendar year. 24 (3) Retailers and marketplace providers subject to this 25 paragraph may enter into agreements regarding the fulfillment 26 of the requirements of this chapter. 27 (4) A marketplace provider shall collect sales and use tax 28 on the entire sales price or purchase price paid by a purchaser 29 on each Iowa sale made or facilitated by the marketplace 30 provider that is subject to sales and use tax, regardless of 31 the amount of the sales price or purchase price that will 32 ultimately accrue to or benefit the marketplace provider, 33 another retailer, or any other person. This sales and use tax 34 collection responsibility of a marketplace provider applies but 35 shall not be limited to sales facilitated through a computer LSB 5452XC (3) 87 -80- mm/jh Page82 f 291 S.F. 1 software application, commonly referred to as in -app purchases, 2 or through a specified digital product. 3 (5) If a retail sale subject to the sales and use tax 4 involves both a marketplace provider and another retailer 5 that is required to collect and remit sales and use tax, 6 the marketplace provider and any other retailer involved in 7 the transaction shall be jointly and severally liable for 8 collecting and remitting sales and use tax under this chapter. 9 (6) (a) For purposes of this paragraph, ':marketplace 10 provider"" means a person who facilitates a retail sale by 11 satisfying subparagraph divisions (i) and (ii) as follows: 12 (i) The person directly or indirectly does any of the 13 following: 14 (A) Lists, makes available, or advertises tangible personal 15 property, services, or specified digital products for sale by a 16 retailer in any forum. 17 (B) Transmits or otherwise communicates an offer or 18 acceptance of a retail sale of tangible personal property, 19 services, or specified digital products between a retailer and 20 a purchaser. 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 (C) Owns, rents, licenses, makes available, or operates any electronic or physical infrastructure or any property, process, method, copyright, trademark, or patent that connects retailers to purchasers for the purpose of making retail sales of tangible personal property, products. (D) Provides a platform or services, or specified digital other marketplace for making retail sales of tangible personal property, services, or specified digital sales of tangible digital products, tangible personal products that are products, or otherwise facilitates retail personal property, services, or specified regardless of ownership or control of the property, services, or specified digital the subject of the retail sale. (E) Provides software development or research and development activities related to any activity described in LSB 5452XC (3) 87 -81- mm/jh PageRif 291 S.F. 1 this subparagraph subdivision (i), if such software development 2 or research and development activities are directly related 3 to the physical or electronic marketplace provided by a 4 marketplace provider. 5 (F) Provides or offers fulfillment or storage services for 6 a retailer. 7 (G) Sets prices for a retailer's sale of tangible personal 8 property, services, or specified digital products. 9 (H) Provides or offers customer service to a retailer or 10 a retailer's customers, or accepts or assists with returns or 11 exchanges of tangible personal property, services, or specified 12 digital products sold by a retailer. 13 (ii) The person directly or indirectly does any of the 14 following: 15 (A) Collects the sales price or purchase price of a retail 16 sale of tangible personal property, services, or specified 17 digital products. 18 (B) Provides payment processing services for a retail sale 19 of tangible personal property, services, or specified digital 20 products. 21 (C) Charges, collects, or otherwise receives selling 22 fees, listing fees, referral fees, closing fees, fees for 23 inserting or making available tangible personal property, 24 services, or specified digital products on a marketplace, or 25 other consideration from the facilitation of a retail sale of 26 tangible personal property, services, or specified digital 27 products, regardless of ownership or control of the tangible 28 personal property, services, or specified digital products that 29 are the subject of the retail sale. 30 (D) Through terms and conditions, agreements, or 31 arrangements with a third party, collects payment in connection 32 with a retail sale of tangible personal property, services, 33 or specified digital products from a purchaser and transmits 34 that payment to the retailer, regardless of whether the person 35 collecting and transmitting such payment receives compensation LSB 5452XC (3) 87 -82- mm/jh Page 8f 291 S.F. 1 or other consideration in exchange for the service. 2 (E) Provides a virtual currency that purchasers are allowed 3 or required to use to purchase tangible personal property, 4 services, or specified digital products. 5 (b) For purposes of this paragraph, ':marketplace provider"" 6 includes but is not limited to a digital distribution service, 7 digital distribution platform, online portal, or an application 8 store. 9 e. (1) A retailer that makes Iowa sales through the use of 10 a solicitor. For purposes of this paragraph, 'solicitor means 11 a person that directly or indirectly solicits business for a 12 retailer. 13 (2) (a) A retailer is deemed to have a solicitor in 14 this state if the retailer enters into an agreement with a 15 resident under which the resident, for a commission, fee, or 16 other similar consideration, directly or indirectly refers 17 potential customers, whether by link on an internet site, 18 or otherwise, to the retailer. This determination may be 19 rebutted by a showing of proof that the resident with whom the 20 retailer has an agreement did not engage in any solicitation 21 in this state on behalf of the retailer that would satisfy the 22 nexus requirement of the United States Constitution during the 23 calendar year in question. 24 (b) This subparagraph (2) shall not apply to a retailer that 25 has Iowa gross revenue from Iowa sales of ten thousand dollars 26 or less for the immediately preceding calendar year or the 27 current calendar year. 28 (c) For purposes of this subparagraph (2): 29 (i) "Iowa gross revenue' means gross revenue from Iowa 30 sales to purchasers who were referred to the retailer by all 31 solicitors who are residents. 32 (ii) 'Resident"" includes an individual who is a resident 33 of this state, as defined in section 422.4, and any business 34 that owns any tangible or intangible property with a situs in 35 this state, or that has one or more employees performing or LSB 5452XC (3) 87 -83- mm/jh Paged 8f 291 S.F. 1 providing services for the business in this state. 2 (d) This paragraph "e" does not apply to chapter 422 and 3 does not expand or contract the state's jurisdiction to tax a 4 trade or business under chapter 422. 5 f. A retailer that owns, controls, rents, licenses, makes 6 available, or uses any tangible or intangible property in this 7 state or with a situs in this state, to make or otherwise 8 facilitate a retail sale. 9 g. (1) Any person that enters into a contract or agreement 10 with a governmental entity, including but not limited to 11 contracts for the provision of financial assistance or 12 incentives such as a tax credit, forgivable loan, grant, tax 13 rebate, or any other thing of value. For purposes of this 14 subparagraph, "governmental entity"" means any unit of government 15 in the executive, legislative, or judicial branch, or any 16 political subdivision of the state, including but not limited 17 to a city, county, township, or school district. 18 (2) Every bid submitted and each contract or agreement 19 executed by a state agency shall contain a certification by 20 the bidder or contractor stating that the bidder or contractor 21 is registered with the department pursuant to this chapter 22 and will collect and remit Iowa sales and use tax due under 23 this chapter. In the certification, the bidder or contractor 24 shall also acknowledge that the state agency may declare the 25 contractor or bid void if the certification is false or becomes 26 false. Fraudulent certification, by act or omission, may 27 result in the state agency or its representative filing for 28 damages for breach of contract. 29 h. Any affiliate of any retailer that is required to collect 30 and remit sales and use tax under this chapter, provided the 31 affiliate makes retail sales. 32 Sec. 179. Section 423.15, unnumbered paragraph 1, Code 33 2018, is amended to read as follows: 34 All sales of products tangible personal property, services, 35 or specified digital products, except those sales enumerated LSB 5452XC (3) 87 -84- mm/jh Page822°138f 291 S.F. 1 in section 423.16, shall be sourced according to this section 2 by sellers obligated to collect Iowa sales and use tax. The 3 sourcing rules described in this section apply to sales of 4 tangible personal property, specified digital goods products, 5 and all services other than telecommunications services. This 6 section only applies to determine a seller's obligation to pay 7 or collect and remit a Iowa sales or use tax with respect to 8 the seller's sale of a product. This section does not affect 9 the obligation of a purchaser or lessee to remit tax on the use 10 of the product to the taxing jurisdictions in which the use 11 occurs. A sellers obligation to collect Iowa sales tax or 12 Iowa use tax only occurs if the sale is sourced to this state. 13 Whcthcr Iowa sales tax applies to a sale sourced to Iowa oha11 14 be determined based on the lo ation at which the sale is 15 16 - - -- -- -- - made by a seller subject to 17 section 423.1, subsection 48, or section 423.14A. 18 Sec. 180. Section 423.15, subsection 1, paragraph e, Code 19 2018, is amended to read as follows: 20 e. When paragraphs "a"", "b", "c", and "d"" do not apply, 21 including the circumstance where the seller is without 22 sufficient information to apply the previous rules, then the 23 location will be determined by the address from which tangible 24 personal property was shipped, from which the specified digital 25 good product or the computer software delivered electronically 26 was first available for transmission by the seller, or from 27 which the service was provided disregarding for these purposes 28 any location that merely provided the digital transfer of the 29 product sold. 30 Sec. 181. Section 423.22, Code 2018, is amended to read as 31 follows: 32 423.22 Taxation in another state. 33 If any person who causes tangible personal property or 34 specified digital products to be brought into this state or 35 who uses in this state services enumerated in section 423.2 ery or, in the case of a service, whcrc the LSB 5452XC (3) 87 -85- mm/jh Page82Bf 291 S.F. 1 has already paid a tax in another state in respect to the sale 2 or use of the property or the performance of the service, or 3 an occupation tax in respect to the property or service, in 4 an amount less than the tax imposed by subchapter II or III, 5 the provisions of those subchapters shall apply, but at a rate 6 measured by the difference only between the rate fixed by 7 subchapter II or III and the rate by which the previous tax on 8 the sale or use, or the occupation tax, was computed. If the 9 tax imposed and paid in the other state is equal to or more than 10 the tax imposed by those subchapters, then a tax is not due in 11 this state on the personal property or service. 12 Sec. 182. Section 423.29, subsection 1, Code 2018, is 13 amended to read as follows: 14 1. Every seller who is a retailer and who is making taxable 15 sales of tangible personal property or specified digital 16 products in Iowa shall, at the time of -- 17 making the sale, collect the sales tax. Every seller who 18 is a retailer maintaining a placc of busincss in this statc 19 that is not otherwise required to collect sales tax under the 20 provisions of this chapter and who is selling tangible personal 21 property or specified digital products for use in Iowa shall, 22 at the time of making the sale, whether within or without the 23 state, collect the use tax. Sellers required to collect sales 24 or use tax shall give to any purchaser a receipt for the tax 25 collected in the manner and form prescribed by the director. 26 Sec. 183. Section 423.30, subsection 1, Code 2018, is 27 amended to read as follows: 28 1. The director may, upon application, authorize the 29 collection of the use tax by any seller who is a retailer not 30 maintaining a place of business within this state and not 31 registered under the agreement, who, to the satisfaction of 32 the director, furnishes adequate security to ensure collection 33 and payment of the tax. Such sellers shall be issued, without 34 charge, permits to collect tax subject to any regulations 35 which the director shall prescribe. When so authorized, it LSB 5452XC (3) 87 -86- mm/jh Page8f 291 S.F. 1 shall be the duty of foreign sellers to collect the tax upon 2 all tangible personal property and specified digital products 3 sold, to the retailer's knowledge, for use within this state, 4 in the same manner and subject to the same requirements as a 5 retailer maintaining a place of business within this state. 6 The authority and permit may be canceled when, at any time, the 7 director considers the security inadequate, or that tax can 8 more effectively be collected from the person using property 9 in this state. 10 Sec. 184. Section 423.31, subsection 1, Code 2018, is 11 amended to read as follows: 12 1. Each person subject to this section and section 423.36 13 and in accordance with the provisions of this section and 14 section 423.36 shall, on or before the last day of the month 15 following the close of each calendar quarter during which 16 such person is or has become or ceased being subject to the 17 provisions of this section and section 423.36, make, sign, and 18 file a return for the calendar quarter in the form as may be 19 required. Returns shall show information relating to sales 20 prices including goods, wares, tangible personal property, 21 specified digital products, and services converted to the 22 use of such person, the amounts of sales prices excluded and 23 exempt from the tax, the amounts of sales prices subject to 24 tax, a calculation of tax due, and any other information for 25 the period covered by the return as may be required. Returns 26 shall be signed by the retailer or the retailer's authorized 27 agent and must be certified by the retailer to be correct in 28 accordance with forms and rules prescribed by the director. 29 Sec. 185. Section 423.31, subsection 5, paragraph a, Code 30 2018, is amended to read as follows: 31 a. Upon making application and receiving approval from 32 the director, a parent corporation person and its affiliated 33 corporations affiliates that make retail sales of tangible 34 personal property, specified digital products, or taxable 35 enumerated services may make deposits and file a consolidated LSB 5452XC (3) 87 -87- mm/jh Page W 8f 291 S.F. 1 sales tax return for the affiliated group, pursuant to rules 2 adopted by the director. A parcnt corporation person and each 3 affiliate corporation that files a consolidated return are 4 jointly and severally liable for all tax, penalty, and interest 5 found due for the tax period for which a consolidated return is 6 filed or required to be filed. 7 Sec. 186. Section 423.32, subsection 1, paragraph b, Code 8 2018, is amended to read as follows: 9 b. The deposit form is due on or before the twentieth day of 10 the month following the month of collection, except a deposit 11 is not required for the third month of the calendar quarter, 12 and the total quarterly amount, less the amounts deposited for 13 the first two months of the quarter, is due with the quarterly 14 report on the last day of the month following the month of 15 collection. At that time, the retailer shall file with the 16 department a return for the preceding quarterly period in the 17 form prescribed by the director showing the purchase price of 18 the tangible personal property, specified digital products, and 19 services sold by the retailer during the preceding quarterly 20 period, the use of which is subject to the use tax imposed 21 by this chapter, and other information the director deems 22 necessary for the proper administration of the use tax. 23 Sec. 187. Section 423.33, subsection 3, Code 2018, is 24 amended to read as follows: 25 3. Event sponsor's liability for sales tax. A person 26 sponsoring a flea market or a craft, antique, coin, or stamp 27 show or similar event shall obtain from every retailer selling 28 tangible personal property, specified digital products, 29 or taxable services at the event proof that the retailer 30 possesses a valid sales tax permit or secure from the retailer 31 a statement, taken in good faith, that tangible personal 32 property, specified digital products, or services offered for 33 sale are not subject to sales tax. Failure to do so renders 34 a sponsor of the event liable for payment of any sales tax, 35 interest, and penalty due and owing from any retailer selling LSB 5452XC (3) 87 -88- mm/jh PageBf 291 S.F. 1 property or services at the event. Sections 423.31, 423.32, 2 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42 apply to the 3 sponsors. For purposes of this subsection, a person sponsoring 4 a flea market or a craft, antique, coin, or stamp show or similar 5 event" does not include an organization which sponsors an 6 event determined to qualify as an event involving casual sales 7 pursuant to section 423.3, subsection 39, or the state fair or 8 a fair as defined in section 174.1. 9 Sec. 188. Section 423.33, Code 2018, is amended by adding 10 the following new subsection: 11 NEW SUBSECTION. 4. Liability of affiliates. 12 a, Notwithstanding any other provision of law to the 13 contrary, if any retailer required to collect and remit sales 14 and use tax pursuant to sections 423.14, 423.14A, and 423.29, 15 or any other provision of this chapter, fails to do so, all 16 affiliates that directly, indirectly, or constructively control 17 the retailer shall be jointly and severally liable for any tax, 18 penalty, and interest under this chapter, regardless of whether 19 the affiliate is a retailer. 20 b, Pursuant to paragraph -a", the department may elect 21 to assess the full amount of any tax, penalty, and interest 22 against the retailer, an affiliate of the retailer described 23 in paragraph -a-, or any combination of the retailer and the 24 retailer's affiliates described in paragraph 'a". 25 c, Notwithstanding any other provision of law to the 26 contrary, the department has the discretion to deem an 27 affiliate of a retailer an agent or alter ego of that retailer. 28 d. Notwithstanding any other provision of law to the 29 contrary, the department has the discretion to disregard or 30 look through any organizational structure of an enterprise in 31 order to assess and collect any tax, penalty, and interest 32 against an affiliate that is acting to benefit an affiliate or 33 an enterprise of which the affiliate is a part. 34 Sec. 189. Section 423.34, Code 2018, is amended to read as 35 follows: LSB 5452XC (3) 87 -89- mm/jh Page822t38f 291 S.F. 1 423.34 Liability of user. 2 Any person who uses any tangible personal property, 3 specified digital products, or services enumerated in section 4 423.2 upon which the use tax has not been paid, either to the 5 county treasurer or to a retailer or direct to the department 6 as required by this subchapter, shall be liable for the payment 7 of tax, and shall on or before the last day of the month next 8 succeeding each quarterly period pay the use tax upon all 9 property or services used by the person during the preceding 10 quarterly period in the manner and accompanied by such returns 11 as the director shall prescribe. All of the provisions of 12 sections 423.32 and 423.33 with reference to the returns and 13 payments shall be applicable to the returns and payments 14 required by this section. 15 Sec. 190. Section 423.36, subsection 1, Code 2018, is 16 amended to read as follows: 17 1. A person shall not engage in or transact business as a 18 retailer making taxable sales of tangible personal property, 19 specified digital products, or furnishing services within 20 this state or as a retailer making taxable sales of tangible 21 personal property, specified digital products, or furnishing 22 services for use within this state, unless a permit has been 23 issued to the retailer under this section, except as provided 24 in subsection 7. Every person desiring to engage in or 25 transact business as a retailer shall file with the department 26 an application for a permit to collect sales or use tax. Every 27 application for a sales or use tax permit shall be made upon 28 a form prescribed by the director and shall set forth any 29 information the director may require. The application shall 30 be signed by an owner of the business if a natural person; in 31 the case of a retailer which is an association or partnership, 32 by a member or partner; and in the case of a retailer which 33 is a corporation, by an executive officer or some person 34 specifically authorized by the corporation to sign the 35 application, to which shall be attached the written evidence of LSB 5452XC (3) 87 -90- mm/jh Page92 Bf 291 S.F. 1 the person's authority. 2 Sec. 191. Section 423.36, subsection 2, paragraph a, Code 3 2018, is amended to read as follows: 4 a. Notwithstanding subsection 1, if any person will make 5 taxable sales of tangible personal property, specified digital 6 products, or furnish services to any state agency, that person 7 shall, prior to the sale, apply for and receive a permit to 8 collect sales or use tax pursuant to this section. A state 9 agency shall not purchase tangible personal property, specified 10 digital products, or services from any person unless that 11 person has a valid, unexpired permit issued pursuant to this 12 section and is in compliance with all other requirements in 13 this chapter imposed upon retailers, including but not limited 14 to the requirement to collect and remit sales and use tax and 15 file sales and use tax returns. 16 Sec. 192. Section 423.36, subsection 7, paragraph b, Code 17 2018, is amended to read as follows: 18 b. Persons engaged in selling tangible personal property, 19 specified digital products, or furnishing services shall not be 20 required to obtain or retain a sales tax permit for a place of 21 business at which taxable sales of tangible personal property, 22 specified digital products, or taxable performance of services 23 will not occur. 24 Sec. 193. Section 423.36, subsection 9, paragraph a, Code 25 2018, is amended to read as follows: 26 a. Except as provided in paragraph "b"", purchasers, users, 27 and consumers of tangible personal property, specified digital 28 products, or enumerated services taxed pursuant to subchapter 29 II or III of this chapter or chapter 423B may be authorized, 30 pursuant to rules adopted by the director, to remit tax owed 31 directly to the department instead of the tax being collected 32 and paid by the seller. To qualify for a direct pay tax permit, 33 the purchaser, user, or consumer must accrue a tax liability 34 of more than four thousand dollars in tax under subchapters 35 II and III in a semimonthly period and make deposits and file LSB 5452XC (3) 87 -91- mm/jh Pagee928f 291 S.F. 1 returns pursuant to section 423.31. This authority shall not 2 be granted or exercised except upon application to the director 3 and then only after issuance by the director of a direct pay 4 tax permit. 5 Sec. 194. Section 423.40, subsection 2, Code 2018, is 6 amended to read as follows: 7 2. a. Any person who knowingly sells tangible personal 8 property, specified digital products, tickets or admissions 9 to places of amusement and athletic events, or gas, water, 10 electricity, or communication service at retail, or engages in 11 the furnishing of services enumerated in section 423.2, in this 12 state without procuring a permit to collect tax, as provided 13 in section 423.36, or who violates section 423.24 and the 14 officers of any corporation who so act are guilty of a serious 15 misdemeanor. 16 b. A person who knowingly sells tangible personal property, 17 specified digital products, tickets or admissions to places of 18 amusement and athletic events, or gas, water, electricity, or 19 communication service at retail, or engages in the furnishing 20 of services enumerated in section 423.2, in this state after 21 the person's sales tax permit has been revoked and before it 22 has been restored as provided in section 423.36, subsection 6, 23 and the officers of any corporation who so act are guilty of an 24 aggravated misdemeanor. 25 Sec. 195. Section 423.41, Code 2018, is amended to read as 26 follows: 27 423.41 Books — examination. 28 Every retailer required or authorized to collect taxes 29 imposed by this chapter and every person using in this state 30 tangible personal property, specified digital products, 31 services, or the product of services shall keep records, 32 receipts, invoices, and other pertinent papers as the director 33 shall require, in the form that the director shall require, 34 for as long as the director has the authority to examine and 35 determine tax due. The director or any duly authorized agent LSB 5452XC (3) 87 -92- mm/jh Pagee92 8f 291 S.F. 1 of the department may examine the books, papers, records, 2 and equipment of any person cithcr selling tangible personal 3 property, specified digital products, or services or liable 4 for the tax imposed by this chapter, and investigate the 5 character of the business of any person in order to verify 6 the accuracy of any return made, or if a return was not made 7 by the person, ascertain and determine the amount due under 8 this chapter. These books, papers, and records shall be made 9 available within this state for examination upon reasonable 10 notice when the director deems it advisable and so orders. If 11 the taxpayer maintains any records in an electronic format, 12 the taxpayer shall comply with reasonable requests by the 13 director or the director's authorized agents to provide those 14 electronic records in a standard record format. The preceding 15 requirements shall likewise apply to users and persons 16 furnishing services enumerated in section 423.2. 17 Sec. 196. Section 423.45, subsection 4, paragraphs a, b, and 18 e, Code 2018, are amended to read as follows: 19 a. The department shall issue or the seller may separately 20 provide exemption certificates in the form prescribed by the 21 director, including certificates not made of paper, which 22 conform to the requirements of paragraph "c', to assist 23 retailers in properly accounting for nontaxable sales of 24 tangible personal property, specified digital products, 25 or services to purchasers for a nontaxable purpose. The 26 department shall also allow the use of exemption certificates 27 for those circumstances in which a sale is taxable but the 28 seller is not obligated to collect tax from the buyer. 29 b, The sales tax liability for all sales of tangible 30 personal property and specified digital products and all sales 31 of services is upon the seller and the purchaser unless the 32 seller takes from the purchaser a valid exemption certificate 33 stating under penalty of perjury that the purchase is for a 34 nontaxable purpose and is not a retail sale as defined in 35 section 423.1, or the seller is not obligated to collect tax LSB 5452XC (3) 87 -93- mm/jh Page92Bf 291 S.F. 1 due, or unless the seller takes a fuel exemption certificate 2 pursuant to subsection 5. If the tangible personal property, 3 specified digital products, or services are purchased tax free 4 pursuant to a valid exemption certificate and the tangible 5 personal property, specified digital products, or services are 6 used or disposed of by the purchaser in a nonexempt manner, the 7 purchaser is solely liable for the taxes and shall remit the 8 taxes directly to the department and sections 423.31, 423.32, 9 423.37, 423.38, 423.39, 423.40, 423.41, and 423.42 shall apply 10 to the purchaser. 11 e. If the circumstances change and as a result the tangible 12 personal property, specified digital products, or services are 13 used or disposed of by the purchaser in a nonexempt manner or 14 the purchaser becomes obligated to pay the tax, the purchaser 15 is liable solely for the taxes and shall remit the taxes 16 directly to the department in accordance with this subsection. 17 Sec. 197. Section 423.57, Code 2018, is amended to read as 18 follows: 19 423.57 Statutes applicable. 20 The director shall administer this subchapter as it relates 21 to the taxes imposed in this chapter in the same manner and 22 subject to all the provisions of, and all of the powers, 23 duties, authority, and restrictions contained in sections 24 423.14, 423.14A, 423.15, 423.16, 423.17, 423.19, 423.20, 25 423.21, 423.22, 423.23, 423.24, 423.25, 423.29, 423.31, 423.32, 26 423.33, 423.34, 423.34A, 423.35, 423.37, 423.38, 423.39, 27 423.40, 423.41, and 423.42, section 423.43, subsection 1, and 28 sections 423.45, 423.46, and 423.47. 29 Sec. 198. Section 423.58, Code 2018, is amended to read as 30 follows: 31 423.58 Collection, permit, and tax return exemption for 32 certain out-of-state businesses. 33 Notwithstanding sections 423.14, 423.14A, 423.29, 423.31, 34 423.32, and 423.36, a person meeting the requirements of 35 section 29C.24 is not required to obtain a sales or use tax LSB 5452XC (3) 87 -94- mm/jh Page921138f 291 S.F. 1 permit, collect and remit sales and use tax, or make and file 2 applicable sales or use tax returns, as provided in section 3 29C.24, subsection 3, paragraph "a", subparagraph (2). 4 Sec. 199. Section 423B.5, subsection 1, Code 2018, is 5 amended to read as follows: 6 1. A local sales and services tax at the rate of not more 7 than one percent may be imposed by a county on the sales price 8 taxed by the state under chapter 423, subchapter II. A local 9 sales and services tax shall be imposed on the same basis as 10 the state sales and services tax or in the case of the use of 11 natural gas, natural gas service, electricity, or electric 12 service on the same basis as the state use tax and shall not 13 be imposed on the sale of any property or on any service not 14 taxed by the state, except the tax shall not be imposed on 15 the sales price from the sale of motor fuel or special fuel 16 as defined in chapter 452A which is consumed for highway use 17 or in watercraft or aircraft if the fuel tax is paid on the 18 transaction and a refund has not or will not be allowed, 19 on the sales price from the sale of equipment by the state 20 department of transportation, or on the sales price from the 21 sale or use of natural gas, natural gas service, electricity, 22 or electric service in a city or county where the sales price 23 from the sale of natural gas or electric energy is subject to 24 a franchise fee or user fee during the period the franchise 25 or user fee is imposed. A local sales and services tax is 26 applicable to transactions within those incorporated and 27 unincorporated areas of the county where it is imposed and, 28 which transactions include but are not limited to sales sourced 29 pursuant to sections 423.15, 423.17, 423.19, or 423.20, to a 30 location within that incorporated or unincorporated area of the 31 county. The tax shall be collected by all persons required 32 to collect state sales taxes. All cities contiguous to each 33 other shall be treated as part of one incorporated area and the 34 tax would be imposed in each of those contiguous cities only 35 if the majority of those voting in the total area covered by LSB 5452XC (3) 87 -95- mm/jh Page92Bf 291 S.F. 1 the contiguous cities favors its imposition. In the case of a 2 local sales and services tax submitted to the registered voters 3 of two or more contiguous counties as provided in section 4 423B.1, subsection 4, paragraph "c', all cities contiguous to 5 each other shall be treated as part of one incorporated area, 6 even if the corporate boundaries of one or more of the cities 7 include areas of more than one county, and the tax shall be 8 imposed in each of those contiguous cities only if a majority 9 of those voting on the tax in the total area covered by the 10 contiguous cities favored its imposition. 11 Sec. 200. Section 423B.6, subsection 2, paragraph b, Code 12 2018, is amended to read as follows: 13 b. The ordinance of a county board of supervisors imposing 14 a local sales and services tax shall adopt by reference the 15 applicable provisions of the appropriate sections of chapter 16 423. All powers and requirements of the director to administer 17 the state sales tax law and use tax law are applicable to the 18 administration of a local sales and services tax law and the 19 local excise tax, including but not limited to the provisions 20 of section 422.25, subsection 4, sections 422.30, 422.67, 21 and 422.68, section 422.69, subsection 1, sections 422.70 22 through 422.75, section 423.14, subsection 1 and subsection 23 2, paragraphs "b"" through "e', and sections 423.14A, 423.15, 24 423.23, 423.24, 423.25, 423.31 through 423.35, 423.37 through 25 423.42, 423.46, and 423.47. Local officials shall confer 26 with the director of revenue for assistance in drafting the 27 ordinance imposing a local sales and services tax. A certified 28 copy of the ordinance shall be filed with the director as soon 29 as possible after passage. 30 Sec. 201. LEGISLATIVE INTENT. It is the intent of the 31 general assembly that the provisions of this division of this 32 Act amending the definition of "place of business"" in section 33 423.1, subsection 37, and -sales"" in section 423.1, subsection 34 50, enacting definitions of -sold at retail in the state"" in 35 section 423.1, subsection 55A, and -subscription"" in section LSB 5452XC (3) 87 -96- mm/jh Page9M13.38f 291 S.F. 1 423.1, subsection 57A, and amending the enumerated service of 2 pay television in 423.2, subsection 6, paragraph "al"", are 3 conforming amendments consistent with current state law, and 4 that the amendments do not change the application of current 5 law but instead reflect current law both before and after the 6 enactment of this division of this Act. 7 Sec. 202. RELATIONSHIP TO EXISTING LAW FOR TAXATION OF 8 SPECIFIED DIGITAL PRODUCTS. The provisions of this division of 9 this Act relating to the imposition of tax on the sale or use of 10 "specified digital products"", as defined in this division of 11 this Act, shall not be construed as affecting the taxability 12 or nontaxability under other provisions of existing law of 13 sales or uses occurring prior to the enactment of this division 14 of this Act of products meeting the definition of "specified 15 digital products"", as defined in this division of this Act. 16 Sec. 203. EFFECTIVE DATE. 17 1. Except as provided in subsection 2, this division of this 18 Act takes effect January 1, 2019. 19 2. The following take effect July 1, 2018: 20 a. The sections of this division of this Act amending 21 section 423.1, subsections 37 and 50. 22 b. The sections of this division of this Act enacting 23 section 423.1, subsections 55A and 57A. 24 c. The section of this division of this Act amending section 25 423.2, subsection 1, paragraph "a"", subparagraph (1). 26 d. The provision amending the enumerated service of pay 27 television to include but not be limited to streaming video, 28 video on -demand, and pay-per-view, in the section of this 29 division of this Act amending section 423.2, subsection 6. 30 e. The provisions adding photography and retouching to the 31 list of enumerated services subject to the sales tax in the 32 section of this division of this Act amending section 423.2, 33 subsection 6. 34 f. The section of this division of this Act enacting section 35 423.2, subsection 8, paragraph "d". LSB 5452XC (3) 87 -97- mm/jh Page928f 291 S.F. 1 g. The section of this division of this Act amending section 2 423.5, subsection 1, paragraph "a". 3 h. The section of this division of this Act entitled 4 "legislative intent"" which describes the intent of the general 5 assembly with respect to certain amendments in this division of 6 this Act to the definition of "place of business"" in section 7 423.1, subsection 37, "sales"" in section 423.1, subsection 50, 8 the enactment of a definition for "subscription"" in section 9 423.1, subsection 57A, and -sold at retail"" in section 423.1, 10 subsection 55A, and amendments to the enumerated service of pay 11 television in section 423.2, subsection 6, paragraph "al". 12 DIVISION VII 13 HOTEL AND MOTEL EXCISE TAX AND AUTOMOBILE RENTAL EXCISE TAX 14 CHANGES 15 Sec. 204. Section 423A.2, subsection 1, Code 2018, is 16 amended to read as follows: 17 1. For the purposes of this chapter, unless the context 18 otherwise requires: 19 a. 'Department- means the department of revenue. 20 b. Lessor" means any of the following: 21 (1) A person engaged in the business of renting lodging to 22 users. 23 (2) A person who acquires a right to or interest in any 24 lodging with an intent to rent the lodging to another person. 25 (3) A person who actually or constructively rents lodging, 26 regardless of who owns or controls the lodging. 27 (4) A lodging facilitator. 28 (5) A retailer or retailer maintaining a place of business 29 in this state as defined in section 423.1, including those 30 persons who meet the requirements of section 423.14A, which 31 retailer or retailer maintaining a place of business in this 32 state would be responsible for collection and payment of the 33 hotel and motel tax if it were a sales or use tax under chapter 34 423. 35 c. "Lodging- means rooms, apartments, or sleeping quarters LSB 5452XC (3) 87 -98- mm/jh Pagee9238f 291 S.F. 1 in a hotel, motel, inn, public lodging house, rooming house, 2 cabin, apartment, residential property, or manufactured or 3 mobile home which is tangible personal property, or in a 4 tourist court, or in any place where sleeping accommodations 5 are furnished to transient guests for rent, whether with or 6 without meals. Lodging does not include rooms that are not 7 used for sleeping accommodations. 8 d. 'Lodging facilitator" means any person who facilitates 9 the renting of lodging to users by satisfying subparagraphs (1) 10 and (2) as follows: 11 (1) The person directly or indirectly does any of the 12 following: 13 (a) Lists, makes available, or advertises lodging for rent 14 by a lessor in any forum. 15 (b) Transmits or otherwise communicates an offer or 16 acceptance between a lessor or user. 17 (c) Owns, rents, licenses, makes available, or operates any 18 electronic or physical infrastructure or any property, process, 19 method, copyright, trademark, or patent that connects lessors 20 and users to each other. 21 (d) Provides a platform or other marketplace for renting 22 lodging or otherwise facilitates the renting of lodging, 23 regardless of ownership or control of the lodging. 24 (e) Provides software development or research and 25 development activities related to any activity described in 26 this subparagraph (1), if such software development or research 27 and development activities are directly related to the physical 28 or electronic marketplace provided by a lodging facilitator. 29 (f) Provides or offers fulfillment or storage services for a 30 lessor. 31 (g) Sets prices for a lessor's rental of lodging. 32 (h) Provides or offers customer service to a lessor or 33 a lessor's customers, or accepts or assists with returns, 34 exchanges, cancellations, or rescheduling of the rental of 35 lodging by a lessor. LSB 5452XC (3) 87 -99- mm/jh Page923VBf 291 S.F. 1 (2) The person directly or indirectly does any of the 2 following: 3 (a) Collects the sales price for the renting of the lodging. 4 (b) Provides payment processing services for the renting of 5 lodging. 6 (c) Charges, collects, or otherwise receives booking fees, 7 advertising revenues, or other consideration from the renting 8 of lodging or the facilitation of the renting of lodging, 9 regardless of ownership or control of the lodging. 10 (d) Through terms and conditions, agreements, or 11 arrangements with a third party, collects payment in connection 12 with a rental of lodging from a user and transmits that payment 13 to the lessor, regardless of whether the person collecting 14 and transmitting such payment receives compensation or other 15 consideration in exchange for the service. 16 (e) Provides a virtual currency that users are allowed or 17 required to use to rent lodging. 18 e. -Person"" means the same as the term is defined in 19 section 423.1. 20 f. Renting"", -rental-, or rent- means a transfer of 21 possession or control of lodging for a fixed or indeterminate 22 term for consideration and includes any kind of direct or 23 indirect charge for such lodging or its use. 24 #- q, -Sales price"" means 25 lodging and mcans the samc as the tcrm is dcfincd in scction 26 423.1 all direct or indirect consideration, including but 27 not limited to cash, credit, property, and services, paid in 28 connection with any charge of any description associated with 29 the renting of lodging or with communicating, negotiating, 30 reserving, booking, facilitating, or otherwise arranging to 31 rent lodging, including but not limited to booking fees, 32 reservation fees, service fees, cleaning fees, linen fees, 33 towel fees, and nonrefundable deposits. When determining -sales 34 price"", no deduction shall be taken for any of the following: 35 (1) The lessor's cost of the property rented. LSB 5452XC (3) 87 -100- mm/jh Pag6°208f 291 S.F. 1 (2) The cost of materials used, labor or service cost, 2 interest, losses, all costs of transportation to the lessor, 3 all taxes imposed on the lessor, or any other expenses of the 4 lessor. 5 (3) Charges by the lessor for any services necessary to 6 complete the rental transaction. 7 g h. -User"" means a person to whom lodging is rented. 8 Sec. 205. NEW SECTION. 423A.3A Collection and remittance by 9 lodging facilitators — joint and several liability. 10 If a transaction for the rental of lodging involves both a 11 lodging facilitator and another lessor, all of the following 12 shall apply: 13 1. The lodging facilitator shall collect the state -imposed 14 tax under section 423A.3 and the locally imposed tax under 15 section 423A.4 on the entire sales price paid by the user, 16 regardless of the amount of the sales price that will 17 ultimately accrue to or benefit the lodging facilitator, 18 another lessor, or any other person. 19 2. The lodging facilitator and any other lessor involved 20 in the transaction shall be jointly and severally liable for 21 collecting and remitting the tax under sections 423A.3 and 22 423A.4. 23 Sec. 206. Section 423A.5, Code 2018, is amended to read as 24 follows: 25 423A.5 Exemptions. 26 There are exempted from the provisions of this chapter 27 and from the computation of any amount of tax imposed by 28 Gcction 423A.3 this chapter all of the following: 29 1. The sales price from the renting of lodging which is 30 rented by the same person for a period of more than thirty-one 31 consecutive days. 32 2. The sales price from the renting of sleeping rooms 33 in dormitories and in memorial unions at all universities and 34 colleges located in the state of Iowa. 35 2. Thcre is exempted from the provisions of this chapter and -101- LSB 5452XC (3) 87 mm/jh Pag6°2'83Bf 291 S.F. 1 from the computation of any amount of tax imposed by section 2 423A.4 all of the following: 3 -- -- -- -- -- = _ 4 exempt undcr subsection 1. 5 b— 3. The sales price of lodging furnished to the guests of 6 a religious institution if the property is exempt under section 7 427.1, subsection 8, and the purpose of renting is to provide a 8 place for a religious retreat or function and not a place for 9 transient guests generally. 10 Sec. 207. Section 423A.6, subsection 4, Code 2018, is 11 amended to read as follows: 12 4. Section 422.25, subsection 4, sections 422.30, 422.67, 13 and 422.68, section 422.69, subsection 1, sections 422.70, 14 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 15 1, and sections 423.23, 423.24, 423.25, 423.31, 423.33, 16 423.35, 423.37 through 423.42, and 423.47, consistent with the 17 provisions of this chapter, apply with respect to the taxes 18 authorized under this chapter, in the same manner and with the 19 same effect as if the state and local hotel and motel taxes 20 were retail sales taxes within the meaning of those statutes. 21 Notwithstanding this subsection, the director shall provide for 22 quarterly filing of returns and for other than quarterly filing 23 of returns both as prescribed in section 423.31. The director 24 may require all persons who are engaged in the business of 25 deriving any sales price subject to tax under this chapter to 26 register with the department. All taxes collected under this 27 chapter by a retailer, lessor, or any individual other person 28 are deemed to be held in trust for the state of Iowa and the 29 local jurisdictions imposing the taxes. 30 Sec. 208. Section 423C.2, subsection 3, Code 2018, is 31 amended to read as follows: 32 3. "Lessor"" means a any of the following: 33 a. A person engaged in the business of renting automobiles 34 to users. "Lessor"" includes a 35 b. A motor vehicle dealer licensed pursuant to chapter LSB 5452XC (3) 87 -102- mm/jh Pag6°2 Bf 291 S.F. 1 322 who rents automobiles to users. For this purposc, the 2 - 3 not nccc33ary to makc the 3 rcnting activity a bu3inc3s. 4 c. A person who acquires a right to or interest in any 5 automobile with an intent to rent the automobile to another 6 person. 7 d. A person who actually or constructively rents 8 automobiles, regardless of who owns or controls the 9 automobiles. 10 e. A rental facilitator. 11 f. A retailer or retailer maintaining a place of business in 12 this state as defined in section 423.1, including those persons 13 who meet the requirements of section 423.14A, which retailer or 14 retailer maintaining a place of business in this state would be 15 responsible for collection and payment of the automobile rental 16 excise tax if it were a sales or use tax under chapter 423. 17 Sec. 209. Section 423C.2, Code 2018, is amended by adding 18 the following new subsection: 19 NEW SUBSECTION. 06. -Rental facilitator"" means any person 20 who facilitates the renting of an automobile to users by 21 satisfying paragraphs a and -b- as follows: 22 a. The person directly or indirectly does any of the 23 following: 24 (1) Lists, makes available, or advertises automobiles for 25 rent by a lessor in any forum. 26 (2) Transmits or otherwise communicates an offer or 27 acceptance between a lessor or user. 28 (3) Owns, rents, licenses, makes available, or operates any 29 electronic or physical infrastructure or any property, process, 30 method, copyright, trademark, or patent that connects lessors 31 and users to each other. 32 (4) Provides a platform or other marketplace for 33 renting automobiles or otherwise facilitates the renting 34 of automobiles, regardless of ownership or control of the 35 automobile. LSB 5452XC (3) 87 -103- mm/jh Pag6°24 Bf 291 S.F. 1 (5) Provides software development or research and 2 development activities related to any activity described in 3 this paragraph 'a"", if such software development or research and 4 development activities are directly related to the physical or 5 electronic marketplace provided by a rental facilitator. 6 (6) Provides or offers fulfillment or storage services for a 7 lessor. 8 (7) Sets prices for a lessor's rental of automobiles. 9 (8) Provides or offers customer service to a lessor or 10 a lessor's customers, or accepts or assists with returns, 11 exchanges, cancellations, or rescheduling of the rental of 12 automobiles by a lessor. 13 b. The person directly or indirectly does any of the 14 following: 15 (1) Collects the rental price for the renting of an 16 automobile. 17 (2) Provides payment processing services for the renting of 18 an automobile. 19 (3) Charges, collects, or otherwise receives booking 20 fees, advertising revenues, or other consideration from the 21 renting of an automobile or the facilitation of the renting 22 of an automobile, regardless of ownership or control of the 23 automobile. 24 (4) Through terms and conditions, agreements, or 25 arrangements with a third party, collects payment in connection 26 with a rental of automobiles from a user and transmits that 27 payment to the lessor, regardless of whether the person 28 collecting and transmitting such payment receives compensation 29 or other consideration in exchange for the service. 30 (5) Provides a virtual currency that users are allowed or 31 required to use to rent automobiles. 32 Sec. 210. Section 423C.2, subsection 6, Code 2018, is 33 amended by striking the subsection and inserting in lieu 34 thereof the following: 35 6. -Rental price"" means all direct or indirect LSB 5452XC (3) 87 -104- mm/jh Pag6°24113Bf 291 S.F. 1 consideration, including but not limited to cash, credit, 2 property, and services, paid in connection with any charge of 3 any description associated with the renting of an automobile 4 or with communicating, negotiating, reserving, booking, 5 facilitating, or otherwise arranging to rent an automobile, 6 including but not limited to booking fees, reservation fees, 7 service fees, and nonrefundable deposits. When determining 8 -rental price-, no deduction shall be taken for any of the 9 following: 10 a. The lessor's cost of the property rented. 11 b. The cost of materials used, labor or service cost, 12 interest, losses, all costs of transportation to the lessor, 13 all taxes imposed on the lessor, or any other expenses of the 14 lessor. 15 c. Charges by the lessor for any services necessary to 16 complete the rental transaction. 17 Sec. 211. NEW SECTION. 423C.3A Collection and remittance by 18 rental facilitators — joint and several liability. 19 If a transaction for the rental of an automobile involves 20 both a rental facilitator and another lessor, all of the 21 following shall apply: 22 1. The rental facilitator shall collect the tax under 23 section 423C.3 on the entire rental price paid by the user, 24 regardless of the amount of the rental price that will 25 ultimately accrue to or benefit the rental facilitator, another 26 lessor, or any other person. 27 2. The rental facilitator and any other lessor involved 28 in the transaction shall be jointly and severally liable for 29 collecting and remitting the tax under section 423C.3. 30 Sec. 212. LEGISLATIVE INTENT. It is the intent of the 31 general assembly that the provision of this division of this 32 Act amending the definition of -lodging"" in section 423A.2, 33 subsection 1, paragraph "c", is a conforming amendment 34 consistent with current state law, and that the amendment 35 does not change the application of current law but instead LSB 5452XC (3) 87 -105- mm/jh Pagb°248f 291 S.F. 1 reflects current law both before and after the enactment of 2 this division of this Act. 3 Sec. 213. EFFECTIVE DATE. 4 1. Except as provided in subsection 2, this division of this 5 Act takes effect January 1, 2019. 6 2. The following take effect July 1, 2018: 7 a. The provision amending the definition of "lodging"" in the 8 section of this division of this Act amending section 423A.2, 9 subsection 1, paragraph "c". 10 b. The section of this division of this Act entitled 11 "legislative intent"" which describes the intent of the general 12 assembly with respect to the amendment in this division of 13 this Act to the definition of -lodging"" in section 423A.2, 14 subsection 1, paragraph "c". 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation's substance by the members of the general assembly. 18 This bill makes numerous changes to the individual and 19 corporate income taxes, the franchise tax, tax credits, 20 the moneys and credits tax, the sales and use taxes and 21 local option sales tax, the hotel and motel excise tax, the 22 automobile rental excise tax, and the Iowa 529 plan and Iowa 23 ABLE plan. 24 DIVISION I — INCOME TAX CHANGES FOR TAX YEAR 2018. The 25 federal Protecting Americans From Tax Hikes Act (PATH Act) 26 enacted by Congress in 2015 made permanent certain increased 27 phase-out amounts and increased credit percentages of the 28 federal earned income tax credit (EITC) that were scheduled 29 to expire in 2018, and made permanent the deduction for 30 certain expenses incurred by elementary and secondary school 31 teachers that was scheduled to expire in 2015. To date, Iowa 32 has not coupled with these federal changes for purposes of 33 calculating the Iowa EITC or for the teacher expense deduction. 34 Division I couples with these federal EITC and teacher expense 35 deduction changes for purposes of the Iowa EITC and Iowa net LSB 5452XC (3) 87 -106- mm/jh Pagb°N1338f 291 S.F. 1 income calculation for tax year 2018. Division I also couples 2 for tax year 2018 with certain accounting method and other 3 miscellaneous changes made in the federal Tax Cuts and Jobs Act 4 of 2017 for purposes of the individual and corporate income 5 taxes, and the franchise tax, to the extent those amendments 6 affect the calculation of federal adjusted gross income or 7 federal taxable income for federal tax purposes for tax year 8 2018. These include amendments contained in the following 9 sections of the federal Tax Cuts and Jobs Act: §13102 (small 10 business accounting method changes), §13221 (accounting method 11 rules for the taxable year of inclusion), §13504 (repeal of 12 technical termination of partnerships), §13541 (electing small 13 business trust), §13543 (treatment of S corporation conversion 14 to C corporation), §13611 (repeal of special rule permitting 15 recharacterization of Roth IRA conversions), and §13613 16 (extended rollover period for qualified plan loans). 17 The division takes effect upon enactment and applies 18 retroactively to January 1, 2018, for tax years beginning on or 19 after that date, but prior to January 1, 2019. 20 DIVISION II — INCOME AND FRANCHISE TAX CHANGES BEGINNING IN 21 2019. Division II makes numerous changes to the individual and 22 corporate income tax and franchise tax. 23 INDIVIDUAL INCOME TAX. Under current law, the starting 24 point for computing the Iowa individual income tax is federal 25 adjusted gross income before the net operating loss deduction, 26 which is generally a taxpayer's gross income minus several 27 deductions. From that point, Iowa requires several adjustments 28 and then provides taxpayers with a deduction for federal income 29 taxes paid, and the option to deduct a standard deduction or 30 itemized deductions. The bill changes the starting point for 31 computing the individual income tax to federal taxable income, 32 which includes all deductions and adjustments taken at the 33 federal level in computing tax, including a standard deduction 34 or itemized deductions, and the new qualified business income 35 deduction allowed for certain income earned from a pass-through LSB 5452XC (3) 87 -107- mm/jh Pag6°2443Bf 291 S.F. 1 entity. Because the starting point will now be federal taxable 2 income, and federal law does not provide for the filing status 3 of married filing separately on a combined return, the bill 4 repeals that filing status option for Iowa tax purposes. 5 Because net operating loss will no longer be calculated 6 at the state level, the bill requires taxpayers to add back 7 any federal net operating loss deduction carried over from a 8 taxable year beginning prior to January 1, 2019, but allows 9 taxpayers to deduct any remaining Iowa net operating loss from 10 a prior taxable year. 11 The bill repeals the alternative minimum tax, and also 12 repeals most deductions and exclusions previously available 13 when computing net income and taxable income under Iowa law, 14 including the Iowa optional standard deduction and all itemized 15 deductions, and the ability to deduct federal income taxes, 16 except for a one-year phase-out in 2019 for taxes paid, or 17 refunds received, that relate to a prior year. 18 The bill keeps the deduction for military pension income 19 or military active duty pay. The bill also keeps the general 20 pension exclusion available under current law, and increases 21 it from $6,000 ($12,000 for married filing jointly) to $10,000 22 ($20,000 for married filing jointly). 23 The bill maintains the deductions for contributions to the 24 Iowa 529 plan, the Iowa ABLE plan, the first-time homebuyer 25 savings account, the deduction for social security retirement 26 benefits, the deduction for certain payments received for 27 providing unskilled in-home health care, for contributions 28 to an individual development account, for certain amounts 29 received from the veterans trust fund, for victim compensation 30 awards, and for biodiesel production refunds. The bill 31 keeps the deductions for certain wages paid to individuals 32 with disabilities or individuals previously convicted of a 33 felony, and for certain organ donations, but only for tax years 34 beginning before January 1, 2022. 35 The bill provides a new deduction for any income of an LSB 5452XC (3) 87 -108- mm/jh Pag6°2Bf 291 S.F. 1 employee resulting from the payment by an employer, whether 2 paid to the employee or to a lender, of principal or interest 3 on the employee's qualified education loan. 4 Federal income tax law does provide a limited deduction for 5 a taxpayer's payment of interest on qualified education loans, 6 and the bill disallows the deduction provided in the bill for 7 any amount of income that represents an interest payment that 8 was also deducted by the employee in computing federal taxable 9 income. 10 The term "qualified education loan"" is defined to mean the 11 same as it does under the Internal Revenue Code (IRC), and 12 generally includes debt incurred on behalf of a taxpayer, or a 13 taxpayer's spouse or dependent, to pay expenses of attending 14 institutions of higher education participating in the federal 15 student financial aid programs. 16 Under current law, the Iowa individual income tax conforms 17 to the IRC as of a certain date, and the general assembly 18 chooses to couple or decouple with changes to the IRC through 19 legislation. The bill changes this conformity by permanently 20 coupling with the IRC. This permanent coupling has the effect 21 of incorporating into Iowa tax law all the changes made to 22 the IRC since 2015, including changes made in the federal 23 Protecting Americans from Tax Hikes Act of 2015, and the 24 federal Tax Cuts and Jobs Act of 2017. This permanent coupling 25 also has the effect of automatically incorporating into Iowa 26 tax law any future changes that may be made to the IRC, unless 27 the general assembly were to affirmatively decouple from a 28 particular provision through legislation. 29 However, the bill does decouple from the federal additional 30 first-year depreciation allowance in section 168(k) of the 31 IRC. By decoupling, taxpayers who claim bonus depreciation for 32 federal tax purposes are required to add such depreciation 33 amounts back to Iowa net income, but are then allowed under 34 existing state law to deduct the amount of depreciation that 35 would otherwise be allowable under federal law, without regard LSB 5452XC (3) 87 -109- mm/jh Pag6°24Bf 291 S.F. 1 to the bonus depreciation allowance. 2 Current law provides nine regular tax brackets containing 3 progressively higher amounts of taxable income that are taxed 4 at progressively higher tax rates, from a low of 0.36 percent, 5 to a high of 8.98 percent. The taxable income amounts in each 6 tax bracket are indexed to inflation and increased each year. 7 The bill reduces the number of brackets to five and modifies 8 the tax rates as follows: 9 Income over: But not over: Tax rate: 10 1) $0 $6,000 5.00% 11 2) $6,000 $15,000 5.25% 12 3) $15,000 $30,000 5.50% 13 4) $30,000 $75,000 6.00% 14 5) $75,000 or more 6.60% 15 The bill further reduces the top tax rate from 6.60% to 6.50% 16 in tax year 2020, to 6.40% in tax year 2021, and to 6.30% for 17 tax year 2022 and beyond. For a married couple filing a joint 18 return, the bill provides that all of the income amounts in 19 each bracket above are doubled. Finally, the bill provides 20 that beginning in 2023, all of the tax rates will be indexed to 21 inflation and reduced each year. 22 CORPORATE INCOME TAX AND FRANCHISE TAX. The starting point 23 for calculating the corporate income tax and the franchise 24 tax is federal taxable income before the net operating loss 25 deduction, because net operating loss is calculated at the 26 state level. The bill repeals the separate calculation of 27 net operating loss at the state level. As a result, the bill 28 requires taxpayers to add back any federal net operating loss 29 deduction carried over from a taxable year beginning prior to 30 January 1, 2019, but allows taxpayers to deduct any remaining 31 Iowa net operating loss from a prior taxable year. 32 The bill repeals the alternative minimum tax for the 33 corporate income tax, and also repeals most deductions and 34 exclusions previously available when computing net income and 35 taxable income under Iowa law, including the ability to deduct LSB 5452XC (3) 87 -110- mm/jh Pag6124738f 291 S.F. 1 federal income taxes, except for a one-year phase-out in 2019 2 for taxes paid, or refunds received, that relate to a prior 3 year. The bill keeps the deduction for certain wages paid 4 to individuals with disabilities or individuals previously 5 convicted of a felony, but only for tax years beginning before 6 January 1, 2022. 7 Under current law, the Iowa corporate income tax and 8 franchise tax conforms to the IRC as of a certain date, and the 9 general assembly chooses to couple or decouple with changes to 10 the IRC through legislation. The bill changes this conformity 11 by permanently coupling with the IRC. This permanent coupling 12 has the effect of incorporating into Iowa tax law all the 13 changes made to the IRC since 2015, including changes made in 14 the federal Protecting Americans from Tax Hikes Act of 2015, 15 and the federal Tax Cuts and Jobs Act of 2017. This permanent 16 coupling also has the effect of automatically incorporating 17 into Iowa tax law any future changes that may be made to the 18 IRC, unless the general assembly were to affirmatively decouple 19 from a particular provision through legislation. 20 However, the bill does decouple from the federal additional 21 first-year depreciation allowance in section 168(k) of the 22 IRC. By decoupling, taxpayers who claim bonus depreciation 23 for federal tax purposes are required to add such depreciation 24 amounts back to Iowa net income, but are then allowed under 25 existing state law to deduct the amount of depreciation that 26 would otherwise be allowable under federal law, without regard 27 to the bonus depreciation allowance. 28 Current law provides four progressively higher tax brackets 29 and tax rates for the corporate income tax, ranging from a low 30 of 8 percent, to a high of 12 percent. The bill reduces the 31 corporate tax rates as follows: 32 Income over: But not over: 2019 2020 2021 2022 and later 33 1) $0 $25,000 6% 6% 5.5% 5.5% 34 2) $25,000 $100,000 8% 8% 5.5% 5.5% 35 3) $100,000 $250,000 10% 8% 5.5% 5.5% -111- LSB 5452XC (3) 87 mm/jh Pag6124Bf 291 S.F. 1 4) $250,000 and more 10% 10% 8% 7% 2 Division II takes effect January 1, 2019, and applies to tax 3 years beginning on or after that date. 4 DIVISION III — TAX CREDITS. Division III makes numerous 5 changes to tax credits and tax credit programs. 6 The bill repeals the taxpayers trust fund tax credit 7 effective January 1, 2020. 8 The bill increases the annual tax credit allocation limit 9 of the angel investor tax credit program from $2 million to 10 $4 million, and provides that in any fiscal year in which the 11 angel investor program allocation exceeds $2 million, the $8 12 million annual tax credit allocation limit of the innovation 13 fund investment tax credit program shall be reduced by the 14 amount that the angel investor tax credit allocation exceeds $2 15 million for that same fiscal year. This change takes effect 16 July 1, 2018. 17 The bill increases the annual tax credit allocation limit of 18 the workforce housing tax incentive program to $22 million from 19 $20 million, and provides that the entire $2 million increase 20 shall be reserved for housing projects in small cities, thereby 21 increasing the small city reserve under the program from $5 22 million to $7 million per fiscal year. These changes take 23 effect July 1, 2018. 24 The bill makes several changes to the high quality jobs 25 program. The bill reduces to $80 million the annual tax 26 credit allocation limit of the high quality jobs program, for 27 fiscal years beginning on or after July 1, 2018. The bill 28 also prohibits data center businesses and web search portal 29 businesses, as defined in the bill, from participating in 30 the high quality jobs program, unless the businesses had a 31 physical presence in this state prior to July 1, 2018. The 32 bill repeals the ability under the high quality jobs program of 33 eligible businesses to receive tax credits and tax refunds for 34 taxes attributable to racks, shelving, and conveyor equipment 35 to be used in a warehouse or distribution center, beginning -112- LSB 5452XC (3) 87 mm/jh Pagb'24 8f 291 S.F. 1 January 1, 2019. The bill repeals the refundability of the 2 supplemental research activities tax credit available under the 3 high quality jobs program beginning January 1, 2019. Finally, 4 the bill repeals the high quality jobs program effective July 5 1, 2025. 6 The bill increases, from 5 percent and 15 percent, to 7 7 percent and 17 percent, the two tax credit rates of the 8 agricultural asset transfer tax credit, beginning January 1, 9 2019. The bill also increases from $6 million to $8 million 10 the number of tax credits that may be issued per fiscal year 11 under the agricultural asset transfer tax credit program, 12 beginning July 1, 2018. 13 The bill repeals the accelerated career education program 14 provided under Code chapter 260G on July 1, 2025. 15 The bill extends by one year the deadline for entering into 16 withholding agreements under the targeted jobs withholding 17 credit pilot project from June 30, 2018, to June 30, 2019. 18 The bill reduces to $35 million from $45 million the number 19 of historic preservation tax credits that may be awarded each 20 fiscal year, beginning July 1, 2018, and repeals the historic 21 preservation tax credit program on July 1, 2025. 22 The bill modifies the research activities tax credits under 23 the individual and corporate income tax by providing that the 24 credits will only be available to businesses engaged in the 25 manufacturing, life sciences, software engineering, or aviation 26 and aerospace industry, and to the extent the business claims 27 and is allowed a research credit for such qualified research 28 expenses under the IRC for the same taxable year it is claiming 29 the state research activities credit. The bill includes 30 examples of persons ineligible for the tax credits. These 31 changes take effect upon enactment and apply retroactively to 32 January 1, 2018, for tax years beginning on or after that date 33 and for tax returns, including amended returns, filed on or 34 after that date for any tax year. 35 The bill further modifies the research activities tax LSB 5452XC (3) 87 -113- mm/jh Pagb3-2M8f 291 S.F. 1 credits under the individual and corporate income tax by 2 amending the definition of "base amount"" for purposes of 3 calculating the credits. This change takes effect upon 4 enactment and applies retroactively to January 1, 2010, for tax 5 years beginning on or after that date. 6 Because Division II repeals the individual and corporate 7 alternative minimum taxes, the bill allows a taxpayer to 8 claim any remaining alternative minimum tax credit against 9 the individual's or corporation's regular tax liability for 10 the 2019 tax year, and the bill then repeals the alternative 11 minimum tax credit beginning in tax year 2020. 12 The bill increases the total amount of school tuition 13 organization tax credits that may be issued per tax year to $13 14 million from $12 million for tax years beginning on or after 15 January 1, 2019. The bill also increases the household income 16 limit at which a student is considered an "eligible student"" 17 under the school tuition organization tax credit program to 18 four times the federal poverty amount for tuition grants 19 provided on or after January 1, 2019. 20 The bill repeals the tuition and textbook tax credit, the 21 volunteer fire fighter and volunteer emergency medical services 22 personnel member tax credit, and the reserve peace officer tax 23 credit, effective January 1, 2022. 24 The bill repeals the geothermal tax credit, the geothermal 25 heat pump tax credit, the farm to food donation tax credit, and 26 the ethanol promotion tax credit on January 1, 2019. 27 The bill repeals the solar energy system tax credits on July 28 1, 2018, for solar energy system installations occurring on or 29 after that date. 30 The bill requires the legislative tax expenditure committee 31 created in Code section 2.45 to study all tax credits available 32 under Iowa law during the 2018 interim, and to submit its 33 findings and recommendations to the general assembly for 34 consideration during the 2019 legislative session. As part 35 of the study, the legislative tax expenditure committee is -114- LSB 5452XC (3) 87 mm/jh Pagb126138f 291 S.F. 1 required to consider new or different tax credit or other 2 incentive programs for economic development. 3 DIVISION IV — FRANCHISE TAX AND MONEYS AND CREDITS TAX. 4 Division IV relates to the state franchise tax and the state 5 moneys and credits tax. The bill repeals the state moneys and 6 credits tax in Code section 533.329 imposed on the required 7 reserves of state credit unions, which are institutions 8 organized in Iowa and exempt from the federal income tax. 9 The bill includes credit unions incorporated in Iowa as well 10 as under the laws of another state within the definition of 11 "financial institution"" for purposes of the state franchise 12 tax on financial institutions, thereby imposing the state 13 franchise tax on state and out-of-state credit unions. The 14 bill also imposes the state franchise tax on agricultural 15 credit associations that are members of the farm credit system 16 under the federal Farm Credit Act. 17 The bill modifies the state franchise tax to provide that 18 neither the state alternative minimum franchise tax (AMT tax), 19 a component of the state franchise tax, nor the associated 20 alternative minimum tax credit for previous AMT tax paid, 21 applies to financial institutions that are exempt from the 22 federal income tax. The bill amends the definition of "net 23 income"" upon which the state franchise tax is computed to 24 provide that -net income"" for a financial institution that is 25 exempt from the federal income tax means the total revenue 26 less total expenses as properly reported on the financial 27 institution's internal revenue service form 990 (return of 28 organization exempt from income tax) for the same period, with 29 the adjustments provided under current law for other financial 30 institutions to the extent such adjustments are applicable to 31 the federally tax-exempt financial institution's calculation of 32 revenues and expenses, as determined by the director by rule. 33 The bill provides that a federally tax-exempt financial 34 institution's state franchise tax is due at the end of the 35 taxable year and will be considered delinquent if not paid and LSB 5452XC (3) 87 -115- mm/jh Pagb128f 291 S.F. 1 filed within five months of that date. 2 Under current law, the state franchise tax rate is 5 percent 3 on all net income of a financial institution. The bill 4 reduces the state franchise tax rate to 2 percent on the first 5 $7.5 million of net income, and 4 percent on all net income 6 exceeding $7.5 million. 7 All revenues arising from the state franchise tax are 8 deposited in the general fund of the state by operation of 9 law. The state moneys and credits tax revenues were shared 10 among cities, counties, and the state according to a statutory 11 formula. 12 The bill makes numerous conforming amendments throughout the 13 Code to remove references to the state moneys and credits tax. 14 The bill provides that the repeal of the state moneys and 15 credits tax shall not affect tax credits issued, awarded, 16 or allowed before January 1, 2019, including tax credit 17 carryforward amounts, and that any credits that would have been 18 eligible to be claimed on or after January 1, 2019, against 19 the state moneys and credits tax shall be allowed against the 20 franchise tax. 21 The division takes effect January 1, 2019, and applies to tax 22 years beginning on or after that date. 23 DIVISION V — CHANGES TO IOWA EDUCATIONAL SAVINGS PLAN TRUST 24 AND IOWA ABLE SAVINGS PLAN TRUST. Division V makes several 25 changes to the Iowa educational savings plan trust in Code 26 chapter 12D (Iowa 529 plan), the disabilities expenses savings 27 plan trust in Code chapter 12I (Iowa ABLE plan), and the income 28 tax treatment of contributions to and withdrawals from such 29 plans. 30 IRC §529, which governs state tuition programs, previously 31 required that in order for a state tuition program to be 32 considered qualified and therefore eligible for certain 33 federal tax benefits, the program must be established to 34 allow contributions for the purposes of funding certain 35 qualifying expenses of attendance at institutions of higher LSB 5452XC (3) 87 -116- mm/jh Pagb1�8f 291 S.F. 1 education. Accordingly, the Iowa 529 plan allows participants 2 to contribute and withdraw funds to and from the Iowa 529 plan 3 for the payment of higher education costs related to attendance 4 at institutions of higher education. 5 The federal Tax Cuts and Jobs Act of 2017 amended IRC 6 §529 to provide that during each tax year, up to $10,000 of 7 cash distributions from all qualified tuition programs for a 8 beneficiary for tuition expenses in connection with enrollment 9 or attendance at an elementary or secondary public, private, 10 or religious school, may be considered a distribution for 11 qualified higher education expenses and thus excludable from 12 income for federal income tax purposes. The federal Tax 13 Cuts and Jobs Act of 2017 also provided that under certain 14 conditions, amounts in qualified tuition programs may be 15 transferred to a qualified ABLE account without incurring 16 federal income tax consequences. 17 The bill amends the Iowa 529 plan to provide for qualified 18 withdrawals from the plan for elementary or secondary school 19 tuition as is now allowed under federal law pursuant to the 20 federal Tax Cuts and Jobs Act of 2017. The bill modifies the 21 findings and purpose provision of the Iowa 529 plan in Code 22 section 12D.1(1) by striking or amending specific references 23 to higher education and institutions of higher education so 24 that such provisions more generally reference education and 25 educational institutions, and by providing that the Iowa 529 26 plan's purpose is to make available an opportunity to invest in 27 a public trust to fund future formal education needs. 28 The bill strikes the definition of -higher education costs-, 29 as well as numerous references to that term throughout the Iowa 30 529 plan, and replaces them with the term "qualified education 31 expenses-, which is defined in the bill to mean the same as 32 qualified higher education expenses as defined in IRC §529, 33 including elementary and secondary school tuition to the extent 34 such tuition amounts are described and allowed under IRC §529. 35 The bill also replaces numerous references to -institution LSB 5452XC (3) 87 -117- mm/jh Page -251438f 291 S.F. 1 of higher education"" throughout the Iowa 529 plan with 2 references to a "qualified educational institution"", which 3 is defined in the bill to include an institution of higher 4 education and any elementary or secondary, public, private, or 5 religious school described in IRC §529. 6 The federal Tax Cuts and Jobs Act of 2017 also amended 7 IRC §529 to allow certain transfers from a qualified tuition 8 program to an ABLE account without incurring federal income tax 9 consequences. The bill amends the Iowa 529 plan to provide 10 that a participant may transfer amounts in an Iowa 529 plan to 11 an ABLE account, including the Iowa ABLE plan, if the transfer 12 is permitted under IRC §529. The Iowa 529 plan is further 13 amended to allow the transfer of funds to another account in 14 the Iowa 529 plan, if the transfer is permitted under IRC §529. 15 Several other modifications are made to the Iowa 529 plan 16 to remove references to the imposition of penalties for 17 cancellation and late payments under the trust, to remove 18 certain references to the ability to amend participation 19 agreements, to describe rules and procedures for determining 20 account successors in the case of death of a participant, and 21 to modify the permissible investment direction that may be 22 provided by participants and beneficiaries under the trust. 23 Finally, the bill adds Iowa 529 plan accounts to the list of 24 exemptions from execution under Code section 627.6. 25 Under current law in Code section 422.7(32)(c), previously 26 tax -deducted contributions to an Iowa 529 plan that are 27 withdrawn for purposes other than the payment of qualified 28 education expenses are required to be added back to income 29 in computing Iowa individual income tax. The bill amends 30 this provision to provide that Iowa 529 plan withdrawals of 31 previously tax -deducted contributions must be added back to 32 Iowa income unless the amount is a withdrawal or transfer 33 for one of three eligible purposes. First, for the payment 34 of qualified higher education expenses. Second, for the 35 payment of tuition to an elementary or secondary school if the LSB 5452XC (3) 87 -118- mm/jh Pagb128f 291 S.F. 1 tuition amounts are qualified education expenses. Third, for a 2 change in beneficiaries under, or transfer to another account 3 within, the Iowa 529 plan, or a transfer to the Iowa ABLE plan, 4 provided such beneficiary change or transfer is permitted under 5 the Iowa 529 plan. The bill defines -institution of higher 6 education"" and "tuition"" to mean the same as defined under 7 the Iowa 529 plan. The bill defines -elementary or secondary 8 school"" to mean an elementary or secondary school in this state 9 which is accredited under Code section 256.11 (educational 10 standards), and adheres to the provisions of the federal 11 Civil Rights Act of 1964 and Code chapter 216 (civil rights 12 commission). The bill defines "qualified higher education 13 expenses"" to mean the same as defined under IRC §529. 14 The bill amends the income tax treatment of contributions 15 to and withdrawals from the Iowa ABLE plan to provide that a 16 contribution shall not be deducted from Iowa income tax to the 17 extent it represents a transfer from the Iowa 529 plan that was 18 previously deducted as a contribution to the Iowa 529 plan, 19 and that amounts resulting from a cancellation or withdrawal 20 from the Iowa ABLE plan for purposes other than the payment of 21 qualified disability expenses shall be added back to income in 22 computing Iowa individual income tax to the extent the amount 23 was previously transferred from the Iowa 529 plan and deducted 24 as a contribution to the Iowa 529 plan. 25 The division takes effect upon enactment and applies 26 retroactively to January 1, 2018, for withdrawals and transfers 27 from the Iowa educational savings plan trust made on or after 28 that date, and for tax years beginning on or after that date. 29 DIVISION VI — SALES AND USE TAXES. Division VI makes 30 numerous changes to the sales and use taxes, including the 31 local option sales tax. 32 SPECIFIED DIGITAL PRODUCTS. The bill imposes the sales and 33 use tax at a rate of six percent on the sale or use of specified 34 digital products in Iowa. The bill defines -specified digital 35 products"" as electronically transferred digital audio-visual -119- LSB 5452XC (3) 87 mm/jh Pagb12 f 291 S.F. 1 works, digital audio works, digital books, or other digital 2 products. These and other related terms are defined in 3 the bill in new Code section 423.1(55A). The sales or use 4 tax applies whether the purchaser obtains permanent use or 5 less than permanent use of the specified digital product, 6 whether the sale or use is conditioned or not conditioned upon 7 continued payment from the purchaser, and whether the sale or 8 use is on a subscription basis or is not on a subscription 9 basis. The bill also provides that the sale or use of digital 10 code that may be used to obtain or access a specified digital 11 product at a later date is taxed in the same manner as a 12 specified digital product. 13 The bill creates an exemption for the sale or use of 14 specified digital products to a non -end user, as defined in the 15 bill. 16 The bill amends numerous existing sales and use tax 17 exemptions to include specified digital products, including 18 the following: sales the state is prohibited from taxing 19 under the United States Constitution or the Iowa Constitution; 20 sales to certain nonprofit corporations, organizations, 21 educational institutions, legal aid organizations, museums, 22 art centers, organ procurement organizations, hospitals, or 23 hospice facilities; sales by a state fair; sales to political 24 subdivisions; sales by counties or cities; casual sales; sales 25 of property which will be distributed as prizes to players 26 of certain amusement games; sales to recognized community 27 action agencies; uses of property for which the sales tax has 28 already been paid; sales in the regular course of business; 29 and property brought into Iowa by a nonresident and used here 30 temporarily. The bill amends a sales tax refund provision 31 relating to relief agencies that purchase property for free 32 distribution to the poor to include purchases of specified 33 digital products. 34 The bill makes certain other conforming amendments related 35 to the treatment of specified digital products for purposes LSB 5452XC (3) 87 -120- mm/jh Pag622 / f 291 S.F. 1 of the administration of the sales and use taxes. The bill 2 provides that the imposition of tax on the sale or use of 3 specified digital products shall not be construed as affecting 4 the taxability or nontaxability under other provisions of 5 existing law of sales or uses occurring prior to the enactment 6 of this division of this Act of products meeting the definition 7 of "specified digital products"". 8 SUBSCRIPTIONS AND PAY TELEVISION SERVICE. The bill amends 9 the definition of "sale"" in Code section 423.1(50) for purposes 10 of the sales tax to provide that a sale includes but is not 11 limited to any transfer, exchange, or barter on a subscription 12 basis. The bill defines "subscription"" in new Code section 13 423.1(57A). 14 The bill amends the taxable service of pay television to 15 provide that pay television includes but is not limited to 16 streaming video, video on -demand, and pay-per-view. 17 The bill provides that it is the intent of the general 18 assembly that these changes to the definition of -sale"" and 19 "subscription"", and changes to the service of pay television, 20 are conforming amendments consistent with current state law, 21 and that the amendments do not change the application of 22 current law but instead reflect current law both before and 23 after the enactment of these changes. 24 These changes take effect July 1, 2018. 25 OTHER CHANGES TO TAXABLE SERVICES. Under current law, the 26 services of photography and retouching are subject to the 27 sales and use tax, but such services are taxed as if they were 28 sales of tangible personal property. The bill strikes these 29 provisions treating photography and retouching as tangible 30 personal property, and adds photography and retouching to the 31 list of enumerated services subject to the sales and use tax. 32 These changes to photography and retouching take effect July 33 1, 2018. 34 Current law provides that a limousine service is subject 35 to the sales and use tax. The bill modifies this service to -121- LSB 5452XC (3) 87 mm/jh Pag622Bf 291 S.F. 1 provide that a personal transportation service shall be subject 2 to the sales and use tax, and includes taxis, driver services, 3 ride sharing services, rides for hire, and limousine services 4 as examples of the types of services which qualify as a taxable 5 personal transportation service. 6 Under current law, the furnishing of information services, 7 as defined in Code section 423.3(66), is exempt from the 8 sales and use tax. The bill strikes this exemption and makes 9 information services a taxable service for purposes of the 10 sales and use tax. The bill defines -information services"". 11 The bill additionally adds the following services to the 12 list of enumerated services subject to the sales and use 13 tax: storage of tangible or electronic files, documents, or 14 other records; services arising from or related to installing, 15 maintaining, servicing, repairing, operating, upgrading, or 16 enhancing specified digital products; video game services and 17 tournaments; and software as a service. 18 OTHER SALES AND USE TAX EXEMPTIONS. Current law provides 19 a sales and use tax exemption for access charges related to 20 online computer services in Code section 423.3(65), and for any 21 retail sale delivered electronically in Code section 423.3(67). 22 The bill strikes both of these exemptions. 23 The bill creates a sales and use tax exemption in new 24 Code section 423.3(103) for certain sales to a commercial 25 enterprise for use exclusively by the commercial enterprise. 26 The exemption specifies that such a use fails to qualify as 27 a use exclusively by the commercial enterprise if its use 28 for noncommercial purposes is more than de minimis. The 29 bill provides that the terms -de minimis"" and "noncommercial 30 purposes"" shall be defined by the director of revenue by 31 rule. The bill defines -commercial enterprise"" to mean the 32 same as defined under the machinery and equipment sales and 33 use tax exemption in Code section 423.3(47), which includes 34 businesses and manufacturers conducted for profit and centers 35 for data processing services to insurance companies, financial LSB 5452XC (3) 87 -122- mm/jh Pag6226938f 291 S.F. 1 institutions, businesses, and manufacturers, but excludes 2 professions and occupations and nonprofit organizations. 3 The exemption applies to sales of specified digital 4 products, and to the furnishing of the following enumerated 5 taxable services: storage of tangible or electronic files, 6 documents, or other records; information services; services 7 arising from or related to installing, maintaining, servicing, 8 repairing, operating, upgrading, or enhancing specified digital 9 products; and software as a service. 10 The bill adds the sale of services to the items that may 11 qualify for the sales and use tax exemption in Code section 12 423.3(63) relating to items purchased for the purposes of 13 providing them as prizes to players of certain amusement games. 14 The bill creates a sales and use tax exemption in new Code 15 section 423.3(105) for the sale of a grain bin, or materials 16 used to construct a grain bin. The bill defines "grain bin"". 17 The bill also repeals numerous sales and use tax exemptions 18 related to agricultural production and creates a new sales and 19 use tax exemption for sales of tangible personal property used 20 primarily in agricultural production by a commercial farmer if 21 the cost of the tangible personal property is properly claimed 22 as a business deduction for Iowa income tax purposes and if 23 the tangible personal property is used on land eligible for 24 the agricultural land property tax credit. The bill includes 25 several categories of items that qualify for the exemption, and 26 modifies the definition of "agricultural production"" in Code 27 section 423.1(5). 28 The bill amends the definition of "manufacturer"" for 29 purposes of the manufacturing and equipment sales and use tax 30 exemption in Code section 423.3(47) to require that a business 31 be primarily engaged in manufacturing in order to qualify for 32 the exemption. The definition includes several examples of 33 activities that do and do not qualify as manufacturing for 34 purposes of the exemption. 35 Finally, the bill amends the sale -for -resale exemption LSB 5452XC (3) 87 -123- mm/jh Pagb22 8f 291 S.F. 1 as it relates to certain construction equipment. Under 2 current law in Code section 423.3(37), the lease or rental 3 of machinery, equipment, attachments, and replacement parts 4 directly and primarily used in specified construction services 5 by an owner, contractor, subcontractor, or builder is exempt 6 from the sales tax (construction equipment exemption). Also 7 under current law, in Code section 423.3(2), the purchase 8 of tangible personal property for subsequent resale, lease, 9 or rental is exempt from the sales tax (sale -for -resale 10 exemption). However, the purchase of construction equipment 11 for a subsequent lease or rental that will qualify for the 12 construction equipment exemption does not qualify for the 13 sale -for -resale exemption. 14 The bill amends the sale -for -resale exemption to provide 15 that the purchase of construction equipment for a subsequent 16 lease or rental that will qualify for the construction 17 equipment exemption will only fail to qualify for the 18 sale -for -resale exemption if the sale is to a nonqualified 19 dealer. The bill defines "nonqualified dealer"" to mean any 20 dealer who is not a party to a dealership agreement, as those 21 terms are defined in Code section 322F.1. The definitions 22 of -dealer"" and -dealership agreement"" in that Code section 23 respectively include persons engaged in the retail sale of 24 equipment and agreements between a dealer and supplier which 25 grant the dealer the right to sell, distribute, or service the 26 supplier's equipment. 27 SALES AND USE TAX NEXUS AND COLLECTION REQUIREMENTS. The 28 bill modifies the requirement of persons to collect and remit 29 the state sales and use taxes and the local option sales tax. 30 Current law requires retailers to collect sales tax for taxable 31 items sold at retail in the state. The bill defines -sold 32 at retail in the state"" and other similar terms to include 33 but not be limited to sales sourced to this state under Code 34 chapter 423 (sales and use tax), and provides that it is 35 the intent of the general assembly that the definition is a -124- LSB 5452XC (3) 87 mm/jh Pag6221-138f 291 S.F. 1 conforming amendment consistent with current state law, and 2 that the amendment does not change the application of current 3 law but instead reflects current law both before and after the 4 enactment of the definition. The enactment of the definition 5 of -sold at retail in the state"" takes effect July 1, 2018. 6 Under current law, Code section 423.15 provides general 7 rules for the sourcing of sales to Iowa. The bill amends a 8 provision in this Code section relating to when sales tax 9 applies to a sale sourced to Iowa, to provide that Iowa sales 10 tax applies to a sale sourced to Iowa made by a seller who is a 11 retailer maintaining a place of business in this state, or who 12 is subject to the new Code section 423.14A (described below). 13 The bill also amends provisions relating to the requirement 14 of retailers maintaining a place of business in this state to 15 collect use tax in Code sections 423.14 and 423.29, to provide 16 that use tax shall be collected by retailers not otherwise 17 required to collect sales tax under Code chapter 423 (sales and 18 use tax). 19 Under current law in Code section 423B.5, the local sales and 20 services tax is applicable to transactions within the areas of 21 the county imposing the tax. The bill amends this provision 22 to provide that a transaction occurring within the taxing area 23 includes a sale sourced to a location in that area pursuant 24 to the sourcing rules governing the sales and use tax (Code 25 sections 423.15 through 423.20). 26 The bill creates new Code section 423.14A that deems certain 27 persons, or agents of those persons, to be a retailer and 28 a retailer maintaining a place of business in this state 29 on or after January 1, 2019, and subjects those persons to 30 all requirements of Code chapter 423 (sales and use taxes), 31 including but not limited to the requirement to collect and 32 remit Iowa sales and use tax, and the requirement to collect 33 and remit the local option sales tax. The bill provides that 34 the requirements in Code section 423.14A are in addition to, 35 and not in lieu of, any other application of Code chapter 423 LSB 5452XC (3) 87 -125- mm/jh Pag622Bf 291 S.F. 1 to a retailer or a retailer maintaining a place of business in 2 this state. Qualifying persons required to collect and remit 3 Iowa sales and use tax include any person described below. For 4 purposes of any threshold requirement described below that 5 involves the sales of taxable items, the bill defines -Iowa 6 sales"" to include any sale sourced to this state under Code 7 chapter 423, or otherwise sold in this state or for delivery 8 into this state, of tangible personal property, specified 9 digital products, or services. 10 A qualifying person includes any retailer that has gross 11 revenue from Iowa sales equal to or exceeding $100,000 for the 12 current or previous calendar year. 13 A qualifying person includes any retailer that makes Iowa 14 sales in 200 or more separate transactions for the current or 15 previous calendar year. 16 A qualifying person includes any retailer that owns, 17 licenses, or uses software or data files (as defined in the 18 bill) that are installed or stored on property used in this 19 state. 20 A qualifying person includes any retailer that uses in-state 21 software (as defined in the bill) to make Iowa sales. 22 A qualifying person includes any retailer that provides, or 23 enters into an agreement to provide, a content distribution 24 network (as defined in the bill) in this state to facilitate, 25 accelerate, or enhance the delivery of the retailer's internet 26 site to purchasers. However, this provision does not apply to 27 any retailer that has gross revenue from Iowa sales of less 28 than $100,000 for the current or previous calendar year. 29 A qualifying person includes any retailer that makes Iowa 30 sales through a marketplace provider (as defined in the bill). 31 However, this provision does not apply to any retailer that 32 has gross revenue from Iowa sales of less than $10,000 for the 33 current or previous calendar year. 34 A qualifying person includes any marketplace provider that 35 makes or facilitates Iowa sales for a retailer equal to or LSB 5452XC (3) 87 -126- mm/jh Pag62�Bf 291 S.F. 1 exceeding $100,000, or in 200 or more separate transactions for 2 the current or previous year. The bill requires marketplace 3 providers to collect Iowa sales and use tax on the entire 4 sales price or purchase price paid the purchaser, regardless 5 of the amount that will ultimately accrue to or benefit the 6 marketplace provider or any other person, includes other 7 provisions related to marketplace providers, and subjects 8 certain marketplace providers and retailers described in the 9 bill to joint and several liability for the collection and 10 payment of Iowa sales and use tax. 11 A qualifying person includes a retailer that makes Iowa 12 sales through the use of a solicitor (as defined in the bill). 13 The bill creates a presumption that a retailer has a solicitor 14 in this state under certain circumstances. This provision does 15 not apply to retailers that have gross revenue from Iowa sales 16 referred by solicitors of $10,000 or less for the current or 17 previous calendar year. 18 A qualifying person includes any person that owns, controls, 19 rents, licenses, makes available, or uses any tangible or 20 intangible property in this state or with a situs in this state 21 to make or facilitate a retail sale. 22 A qualifying person includes any person that enters into a 23 contract or agreement with a governmental entity, as defined in 24 the bill, including but not limited to contracts or agreements 25 for the provision of financial assistance or incentives such as 26 a tax credit, forgivable loan, grant, tax rebate, or any other 27 thing of value. This provision includes certain requirements 28 for contractors who submit bids and agreements to state 29 agencies similar to language in current Code section 423.2(10). 30 The bill strikes the similar language under existing law in 31 Code section 423.2(10). 32 A qualifying person includes any affiliate or any retailer 33 that is required to collect Iowa sales and use tax, provided 34 the affiliate makes retail sales. 35 OTHER MISCELLANEOUS SALES AND USE TAX CHANGES. The bill LSB 5452XC (3) 87 -127- mm/jh Pagb228f 291 S.F. 1 moves provisions relating to the deposit and transfer of sales 2 tax revenues in Code section 423.11 to a new Code section 3 423.2A, and makes corresponding changes to other provisions of 4 the Code that reference those deposit and transfer provisions. 5 The bill amends the definition of -lease or rental"", "use"", 6 -use tax"", and "user"" in Code section 423.1. The bill also 7 amends the definition of "bundled transaction"" in Code section 8 423.2(8) to incorporate certain language also included in 9 the definition of "bundled transaction"" for purposes of the 10 streamlined sales tax agreement, of which Iowa is a member 11 state. The changes to the definition of bundled transaction 12 take effect July 1, 2018. 13 The bill defines 'personal property"" for purposes of the 14 sales and use tax to include but not be limited to tangible 15 personal property and specified digital products. 16 The bill amends the definition of -place of business"" in 17 Code section 423.1 to include places where specified digital 18 products or services are offered for sale, and provides that 19 it is the intent of the general assembly that the change to 20 the definition is a conforming amendment consistent with 21 current state law, and that the amendment does not change the 22 application of current law but instead reflects current law 23 both before and after the enactment of the change. These 24 changes to the definition of "place of business"" take effect 25 July 1, 2018. 26 The bill provides that when any retailer required under 27 Iowa law to collect and remit sales and use tax fails to do 28 so, the retailer and any affiliate that directly, indirectly, 29 or constructively controls the retailer shall be held jointly 30 and severally liable for the tax and any resulting penalty and 31 interest, regardless of whether the affiliate is a retailer. 32 The bill provides the department the authority to assess 33 the full amount of any tax, penalty, or interest against 34 the retailer and these affiliates, and gives the department 35 discretion to disregard or look through any organizational LSB 5452XC (3) 87 -128- mm/jh Pagb228f 291 S.F. 1 structure of an enterprise to assess tax, penalty, and interest 2 against an affiliate of a retailer. The term "affiliate"" for 3 purposes of these provisions is defined under existing law in 4 Code section 423.1(2). 5 Finally, the bill adds several Code sections relating to 6 the requirement to collect sales and use tax to the provisions 7 for which failure to comply may subject a retailer to personal 8 liability under Code section 421.26. 9 EFFECTIVE DATE PROVISIONS. Except as otherwise provided 10 above, the division takes effect January 1, 2019. 11 DIVISION VII — HOTEL AND MOTEL EXCISE TAX AND AUTOMOBILE 12 RENTAL EXCISE TAX. The bill amends the hotel and motel excise 13 tax in Code chapter 423A and the automobile rental excise tax 14 in Code chapter 423C to expand the types of persons who must 15 collect and remit the excise taxes, and to make other changes 16 to the administration of the taxes. 17 Current law requires lessors, as defined with respect to 18 each excise tax, to collect the excise tax. The bill amends 19 the definition of "lessor"" under each tax to more broadly 20 include any person who acquires a right or interest in lodging 21 or an automobile, any person who actually or constructively 22 rents lodging or an automobile, lodging facilitators and rental 23 facilitators, and retailers who would be required to collect 24 the excise taxes if the excise taxes were a sales and use tax 25 under Code chapter 423. The bill defines a lodging facilitator 26 with respect to the hotel and motel excise tax, and defines a 27 rental facilitator with respect to the automobile rental excise 28 tax, to include certain persons who facilitate the renting of 29 the taxable items by directly or indirectly performing certain 30 acts with regard to the rental transaction. The bill modifies 31 the definition of "sales price"" for purposes of the hotel 32 and motel excise tax and "rental price"" with respect to the 33 automobile rental excise tax. 34 The bill repeals an exemption from the hotel and motel excise 35 tax provided for the renting of rooms in a memorial union of an LSB 5452XC (3) 87 -129- mm/jh Pagb228f 291 S.F. 1 Iowa college or university, and expands an exemption for the 2 renting of rooms in certain religious institutions so that it 3 also applies to the state and local hotel and motel excise tax. 4 Under current law, that exemption only applies to the local 5 hotel and motel excise tax. 6 The bill modifies the definition of "lodging"" for purposes 7 of the hotel and motel excise tax to include a cabin, 8 apartment, or residential property. The bill provides that it 9 is the intent of the general assembly that the change to the 10 definition of "lodging"" is a conforming amendment consistent 11 with current state law, and that the amendments do not change 12 the application of current law but instead reflect current law 13 both before and after the enactment of these changes. The 14 changes to the definition of "lodging"" take effect July 1, 15 2018. 16 Finally, the bill provides that if a transaction under 17 either excise tax involves both a lessor and a lodging 18 facilitator or rental facilitator, as applicable, then both 19 parties will be jointly and severally liable for the applicable 20 tax, and further provides that the lodging facilitator or 21 rental facilitator shall collect the entire amount of tax 22 due on the transaction, regardless of the amount that will 23 ultimately accrue to the benefit of the lodging facilitator or 24 rental facilitator, or any other person. 25 EFFECTIVE DATE PROVISIONS. Except as otherwise provided 26 above, the division takes effect January 1, 2019. LSB 5452XC (3) 87 -130- mm/jh Pagb3278f 291 PRESERVE IOWA HISTORIC TAX CREDITS A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA AFFIRMING ITS SUPPORT OF THE STATE HISTORIC TAX CREDIT PROGRAM WHEREAS, the State of Iowa Rehabilitation Tax Credit, also known as the State Historic Tax Credit Program (SHTC), in its current form, was enacted by the Iowa Legislature to attract capital to historic rehabilitation projects that help stimulate local economies; and WHEREAS, each $1 of SHTC, results in an investment of $3.20 of non-SHTC investment and for each $1 of SHTC, the state and local government receives more tax revenue to local and state government than the cost; and WHEREAS, the historic tax credit program creates four times as many jobs as did new construction with personal income gains four times that of new construction per dollar of tax credit; and WHEREAS, nearly one-half of State Historic Tax credit projects in 52 counties across Iowa, between 2001-2014, were small projects with under $500,000 of qualified costs; and WHERAS, current demand for SHTC exceeds available credits. During the October 2017 allocation round only $19.7 million of SHTC where allocated to 13 projects leaving 11 project, representing an investment of $120 million, unfunded; and WHEREAS, SHTC projects are catalytic, generating additional real estate investment in nearby properties that spur an area -wide revitalization cycle. The SHTC also leverages hundreds of millions of dollars of funding from the FHTC that would not otherwise be utilized if the SHTC program did not exist; and WHEREAS, the SHTC, in conjunction with the Federal Historic Tax Credit Program (FHTC), has been a powerful tool for driving economic development in the State of Iowa, in particular the Waterloo and the Cedar Valley community; and WHEREAS, SHTC projects increase the utilization of existing streets and other public infrastructure in our communities, thereby reducing burden on local, state and federal government resources; and WHEREAS, the SHTC program, combined with the FHTC program, is a powerful tool that has led to the redevelopment of such vacant, blighted and/or underutilized buildings in Waterloo as the Single Speed Brewing Company (former Wonder Bakery), Courtyard by Marriott (former John Deere) President Apartments, Russell Lamson Building, Repass Building, Steely Block, Fowler Page 268 of 291 Building, Brown Derby Building, the Union Block (former Walker's Shoe), the Walden Photo buildings, Roosevelt School and at least 17 other buildings. Because of the SHTC, these buildings were returned to both full utilization and to the local tax roll; and WHEREAS, there remains hundreds of thousands of square feet of vacant or underutilized space in Waterloo buildings and dozens of buildings that need to be rehabilitated and would qualify for the State and Federal Historic Tax Credit, including buildings in Downtown, the Walnut Neighborhood, the Triangle, Church Row and others. Rehabilitation of most of these buildings and sites will not be financially feasible without the State Historic Tax Credit; and NOW THEREFORE BE IT RESOLVED by the City Council of the City of Waterloo in due regular and legal session convened, that the Waterloo City Council supports the State Historic Tax Credit program in its current form and urges Senator William Dotzler, Senator Jeff Danielson, Representative Walt Rodgers, Representative Ras Smith, Representative Timi Brown -Powers, Representative Sandy Salmon and Representative Bob Kressig and other members of the Iowa Legislature to continue the State Historic Tax Credit program in its current form. BE IT FURTHER RESOLVED by the City Council of the City of Waterloo in due regular and legal session convened, that the Waterloo City Council urges Senator Grassley, Senator Ernst and Congressman Blum to support the State of Iowa Historic Tax Credit Program. ### Page 269 of 291 CITY OF WATERLOO Council Communication An Ordinance amending the 2008 Traffic Code, Section 549 - Loading Zones. City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Reviewer Action Traffic Operations Even, LeAnn Approved ATTACHMENTS: Description Type ❑ Ordinance Backup Material SUBJECT: Date 2/21/2018 - 11:50 AM Motion to receive, file, consider and pass for the first time an Ordinance amending the 2008 Traffic Code, Section 549 - Loading Zones, by deleting subsection (11a) Northeast side in the 200 block of Prospect Blvd. for 164 feet in front of the School, with a five (5) minute limit. Motion to suspend the rules. Motion to consider and pass for the second and third times and adopt said ordinance. Submitted by: Submitted By: Sandie Greco, Interim Public Works Director Recommended Action: Adopt Ordinance Summary Statement: Policy Issue: Background Information: Marty Metcalf from Waterloo Schools, asked that the ordinance be rescinded as a change has been made for school buses to use this section of Propsect Blvd. to load and unload Kingsley students. This will eliminiate vehicles parking in front of the school and students running between vehicles and buses. Strategy 2.2 - Enlist all City departments and staff members in efforts to promote a safer community. This 5 - minute Loading Zone ordinance was passed on September 8, 2008. Since then the loading and unloading of buses has been moved to the Prospect side of Kingsley School. Page 270 of 291 ORDINANCE NO. AN ORDINANCE AMENDING THE 2008 TRAFFIC CODE BY DELETING SUBSECTION (1 la) PROSPECT BLVD. TO SECTION 549, LOADING ZONES. BE IT ORDAINED by the City Council of the City of Waterloo, Iowa: That Subsection (11a) Prospect Blvd. of Section 549, Loading Zones, of the 2008 Traffic Code shall be deleted in its entirety. (11 a) Prospect Blvd. Northeast side in the 200 block for 164 feet in front of the school, with a five (5) minute time limit (DELETED IN ITS ENTIRETY) PASSED AND ADOPTED by the City Council this day of February, 2018, and approved by the Mayor this day of 26th day of February, 2018. Quentin Hart, Mayor ATTEST: Kelley Felchle, City Clerk Page 271 of 291 CITY OF WATERLOO Council Communication Motion approving Change Order No. 4 from McGill Restoration, for a net increase of $15,472.00, in conjunction with the FY 2017 East 5th Street Parking Garage Repairs, Contract No. 930, and authorize the Mayor and City Clerk to execute said document. City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Reviewer Action Date Engineering Thorson, Eric Approved 2/21/2018 - 10:24 AM Clerk Office Even, LeAnn Approved 2/21/2018 - 12:03 PM ATTACHMENTS: Description Type D Cont 930_Change Order No. 4 Cover Memo o Cont 930_background info Cover Memo Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Submitted By: Mark A. Boesen, Manager Rehabilitation Services/Building Maintenance 15,472.00 (previously approved 10/2/17) GO Bonds Background Information: See attached Page 272 of 291 CHANGE ORDER NO. 4 Owner: City of Waterloo Date: 02-16-2018 Project: East 5th Street Parking Garage Repairs Owner's Contract No. 930 Contractor: McGill Restoration Date of Contract Start: 7-10-17 $ 444,854.00 You are directed to make the following changes in the Contract Documents. Description: 4-1 Repair additional floor drain and piping. $3,350.00 4-2 Add Grind, Route and Seal Pavement. 3190 LF @ $3.80 = $12,122.00 Reason for Change Order: 4-1 Provide better ramp drainage by replacing a corroded drain and piping. 4-2 Increase the repair scope of joint caulk sealant in parking ramp pavement to include additional, joints and cracks. Grind approximately 30 LF of uneven pavement, route all existing caulk joints/cracks, and seal with new sealant. Includes all labor, equipment, and materials associated with this work. CONTRACT PRICE To substantial completion Original: Previous CIO's (ADD/DEDUCT): This C.O. (ADD/DEDUCT): Contract Price with all approved Change Orders: $444,854.00 $63,406.00 $15,472.00 $523,732.00 CONTRACT TIMES (Calendar Days) To final completion Original Completion Date: 6-15-18 Previous CIO's (ADD/DEDUCT): NIA This C.O. (ADD/DEDUCT): REVISED: Revised Completion Date: 12-4-17 It is agreed by the Contractor that this Change Order includes any and all costs associated with or resulting from the change(s) ordered herein, including all impact, delays, and acceleration costs. Other than the dollar amount and time allowance listed above, there shall be no further time or dollar compensation as a result of this Change Order. THIS DOCUMENT SHALL BECOME AN AMENDMENT TO THE CONTRACT AND ALL STIPULATIONS AND COVENANTS OF THE CONTRACT SHALL APPLY HERETO. APPROVED: By: OWNER (Authorized Signature) Date ACCEPTED: By: CONTRACTOR (Authorized Signature) Date AECOM, Inc. 60551064/ 4 Change Order 14o. Project Number CHANGE ORDER FORM CO -4 AECOM 60551064 Page 273 of 291 Change Order Totals for East 5th Street Parking Garage Repairs Contract No. 930 dated June 26, 2017 McGill Restoration Services Project Contract Amount: $444,854.00 Dated June 26, 2017 Change Order No. 1-1: 6,900.00 Council Approval - 9118/17 Change Order No. 2-1: -$12,272.00 Council Approval - 10/2/17 (not to exceed $75,000) Change Order No. 3-1: $68,778.00 Council Approval - 10/2/17 (not to exceed $75,000) Total these two CO's: $56,506.00 Balance of $75,000 approved 10/2/17 $18,494.00 Change Order No. 4-1: $15,472.00, leaves a balance of $3,022 left in the original $75,000 approved 10/2/17 Page 274 of 291 Coversheet Page 1 of 1 CITY OF WATERLOO Council Communication Motion authorizing additional work on East 5th Street Parking Garage Repairs Project. City Council Meeting: 10/2/2017 Prepared: 9/27/2017 ATTACHMENTS: Description Type n Additional Work Order Backup Material Submitted by: Recommended Action: Summary Statement: Expenditure Required: Policy Issue: Submitted By: Noel Anderson, Community Planning & Development Director Approve additional work. With repairs well underway, anticipated quantities to finish the project have been tabulated. The quantities show some growth to the overhead/curb repairs but also include additional repairs to the ramp driving surface. The ramp delaminations were known prebid but were not included in the plans to keep the project within the initial budget and because other repairs took precedent. It is the recommendation of AECOM, however, that the City complete these repairs now while the ramp is closed to traffic. Traffic staging on this ramp is not easy due to the layout of the ramps. Completing this work now would eliminate future disruption and would not extend December completion date. Not to exceed $75,000. Strategy 1.7: Seek ways to create a "live, learn, work, and play" environment with amenities that attract and retain population in Waterloo --- as the ramps serve Downtown Waterloo businesses, visitors, and residents. Strategy 4.5: Maintain and develop community services and facilities that support quality of place ---- as the ramps are indicative of the City's ability to maintain and support its infrastructure, buildings, and a positive image. https://waterloo.novusagenda.cora/AgendaPublic/CoverSheet.aspx?ItemID=9768&Meetin... P /20580f 291 September 13, 2017 The Honorable Quentin Hart, Mayor and City Council Members City of Waterloo 715 Mulberry Street Waterloo, Iowa 50703 RE: "Authorization of Additional Work" East 5th Street Parking Garage Repairs Dear Mayor and Council: As you know, the East 5th Street Parking Garage has been closed for the past couple months for repairs. The project focus has been primarily items that pose structural/safety concerns to ramp users. These include repairing deteriorated overhead concrete, repairing structural ramp curbs/columns, and replacing failing expansion joints. The timeframe to complete repairs was originally June 15, 2018 and utilized staged construction with partial to full ramp closure. Change Order #1 allows the contractor to fully close the structure during construction but requires repairs to be completed by December 4, 2017, well ahead of the June completion date. With repairs well underway, anticipated quantities to finish the project have been tabulated. The quantities show some growth to the overhead/curb repairs but also include additional repairs to the ramp driving surface. The ramp delaminations were known prebid but were not included in the plans to keep the project within the initial budget and because other repairs took precedent. It is the recommendation of AECOM, however, that the City complete these repairs now while the ramp is closed to traffic. Traffic staging on this ramp is not easy due to the layout of the ramps. Completing this work now would eliminate future disruption and would not extend December completion date. item No, item Unit Unit. prig t:crrttract Additional Requested Quantity' Cost quantity Cost 5 Patch, Partial Depth Flntsh, 8y Area ,5F $ 49.00 813 $ 39,337,00 877 $ 42,97100 6 Concrete Repairs, Formed 5F S 80,00 1093 $ 87,840.00 518 e 454 361 $ 41,440.00 5 (23,114.00) 5 740.05 7 Concrete Repairs, Troweled $F 5 91.00 F 274 1900 5 24,934,00 5 3,895.00 12 Surface Coatin; - Wall 5F $ 2.05 $ 156,506.00 $ 62,039.05 Page 276 of 291 Notes: Item 5 includes ramp and top of slab driving surfaces Item 6 includes larger overhead and curb repairs Item 7 includes smaller overhead and curb repairs Item 12 is surface coating to blend in and hide patches It is my opinion that we should proceed with the recommendation of the Project Engineer and proceed to repairing these additional areas during this ramp closure. There are enough bond funds to cover any additional costs. I would like to request from the Council "Authorization for Additional Work" with a cost not to exceed $75,000. We would then, based upon actual quantities needed, provide a Change Order for these costs at a later date. I would like to place this on the September 25, 2017 Council Agenda for your approval. Sincerely, Mark A. Boesen Manager of Rehabilitation Services/Building Maintenance MAB:mb cc: Noel Anderson, Community Planning and Development Director Michelle Weidner, Chief Financial Officer Page 277 of 291 CITY OF WATERLOO Council Communication Waterloo Leisure Services Board Minutes of January 9, 2018. City Council Meeting: 2/26/2018 Prepared: 2/15/2018 REVIEWERS: Department Reviewer Action Date Leisure Services Huting, Paul Approved 2/15/2018 - 3:55 PM Clerk Office Higby, Nancy Approved 2/21/2018 - 10:07 AM ATTACHMENTS: Description Type © 1/9/2018 Minutes Backup Material SUBJECT: Waterloo Leisure Services Board Minutes of January 9, 2018. Submitted by: Submitted By: Madonna Welsh Page 278 of 291 MINUTES WATERLOO LEISURE SERVICES COMMISSION TUESDAY, January 9, 2018 Waterloo Leisure Services 1101 Campbell Avenue Megan Hannam called the meeting to order at 7:34am. Present: Megan Hannam, Brenda Durbahn, Sharon Samec, Don Huff, Marvin Spencer, Brenton Shavers. Staff: Paul Huting, Todd Derifield, JB Bolger, Chris Dolan, Travis Nichols, Bill Bachman, Mark Gallagher and Council Liaison Steve Schmitt. Absent: Nancy Bamsey Megan Hannam asked for a motion to amend the agenda to appoint an interim acting secretary for January through March meeting due to Nancy Bamsey being absent. Motion was made by Sharon Samec, second by Marvin Spencer to appoint Sharon Samec as acting secretary. Megan Hannam called for approval of the agenda. Motion to approve agenda by Marvin Spencer second by Sharon Samec. Ayes: All. Nays: None Megan Hannam called for approval of the 12/12/2017 meeting minutes. Motion by Sharon Samec second by Marvin Spencer to approve the minutes. Ayes: AIL Nays: None. Megan Hannam called for approval of the bills. Questions were answered. Motion by Don Huff, second by Marvin Spencer to approve the bills. Ayes: All. Nays: None Committee Meeting No committee meetings were held. STAFF UPDATES Young Arena — Chris Dolan Chris handed out information showing attendance numbers on the many activities held between Thanksgiving and January 7th. Staff continues to monitor the shuttle for parking. Construction continues on the suites. The goal for the suites to open is February. Construction -- Travis Nichols The parking lot project at the Boat House is 85% complete. Work will stop now until spring. The contractor working on the lights for Diamond number 2 hopes to have the lights up in February. Then City electrician will work on the wiring. Forestry — Todd Derifield Crews continue to work on ash tree removals. Currently working in the Kingsley neighborhood. Crew members are working with Sanitation to chop up Christmas trees. Working on bids for tree plantings, tree removals, and sale of logs. Some grants have been received. Page 279 of 291 Golf and Downtown Area — JB Bolger Working on snow removal after recent snow fall. Crew was able to groom cross country trails at Warren and South Hills. Crews are working on servicing equipment. Sports and SportsPlex — Mark Gallagher Meetings are going to be held with Waters Edge, a consultant for the outdoor pools. Winter activities are in full swing. The weight room has been rearranged. Holding charged fitness classes. Membership numbers are up. The next regular Leisure Services Commission Meeting will be held Tuesday, February 13, 2018 at the 1101 Campbell office. Megan Hannam asked for motion to adjourn. Motion by Marvin Spencer to adjourn, second by Don Huff. Adjourned at 8:14am. Sharon Samec, ` etary 0 -) Ii// Signed this Date Page 280 of 291 CITY OF WATERLOO Council Communication Communication from the Waterloo Public Library on the notice of the conclusion of employment for Andrea D Smith, Library Assistant, effective February 12, 2018 with recommendation of approval of payout of $1,234.07 for unused benefits. City Council Meeting: 2/26/2018 Prepared: REVIEWERS: Department Reviewer Action Human Resources Higby, Nancy Approved ATTACHMENTS: Description SUBJECT: Type Date 2/21/2018 - 12:12 PM Communication from the Waterloo Public Library on the notice of the conclusion of employment for Andrea D. Smith, Library Assistant, effective February 12, 2018 with recommendation of approval of payout of $1,234.07 for unused benefits. Submitted by: Submitted By: Page 281 of 291 CITY OF WATERLOO, IOWA To: City Council Members Re: Notice of Severance CITY HALL 715 MULBERRY STREET 50703 Department Library Today's Date: 2/13/2018 Effective Date: 2/12/2018 Employment Date: 5/26/2015 Job Title/Classification Library Assistant This is to report that the employment of Andrea D. Smith with the City of Waterloo has been severed by reason of: ❑ Retired Disability Related ❑ No ❑ Yes O Resigned ❑ Termination ❑ Other In accordance with City Policy, it is requested to allow payment which consists of the following; Benefits Total Hours (x) Hourly Rate Total Payout Vacation -Accrued 28.8 $ 22.60 $ 650.88 Vacation -Current 13.5 $ 22.60 $ 305.10 Usable Sick Leave 33.22 * $ 22.60 (x) 25% $ 187.69 Frozen Sick Leave (x) 60% $ - Persona! Hours $ - Plus Time $ - Unscheduled Leave $ - Other Pay 4 $ 22.60 $ 90.40 Total Payment $ 1,234.07 Comments: "Other Pay" is birthday holiday. Personal time is not paid out at resignation. hrS put CAc v\A•.n\e.sCr-or- tin r�Vip�15 � Approved by Human Resource Routing: Original to Human Resources by Department Human Resources will forward original to City Clerk (Copy in Personnel File) Clerk's Office will forward copy of approved form to Department and Human Resources Council Agenda Date: ❑ Accruals ❑Status E-9 Datetq l I "g/bill C Date e`;'115118 Updated 6/28/11 Page 282 of 291 CITY OF WATERLOO Council Communication Airport Board Meeting Minutes, December 19, 2017 City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Reviewer Action Airport Even, LeAnn Approved ATTACHMENTS: Description Type ❑ Airport Board Meeting Minutes, December 19, 2017 Cover Memo Date 2/21/2018 - 12:42 PM SUBJECT: Airport Board Meeting Minutes, December 19,2017 Submitted by: Submitted By:Keith Kaspari, Director of Aviation Page 283 of 291 MINUTES WATERLOO REGIONAL AIRPORT BOARD Tuesday, December 19, 2017 I. ROLL CALL Chairperson, Field, called the meeting to order at 11:58 a.rn. Board Members Present: Hugh Field, Steve Dust, Arlene Humble, Scott Voigt and Dr. Linda Allen. Chuck Needham participated via telephone. Board Members Absent: Gwenne Berry. City Officials Present: Noel Anderson, Planning and Zoning. City Officials Absent: Councilman Steve Schmitt, Councilman Tom Lind. Airport Staff Present: Keith Kaspari, Airport Director and Sheila Combs, Airport Bookkeeper. Other Attendees: David Hughes and Doug Schindel, AECOM; Tim Newton and Rick Young, Livingston Aviation; and numerous general aviation pilots. II. AGENDA AS RECEIVED OR AMENDED Moved by Humble, seconded by Allen, to approve the agenda. Ayes: 5. Motion carried. III. PUBLIC COMMENTS Tim Newton stated that he had sent an email regarding the possible closure of Runway 6- 24, so would keep his comments brief but wanted to stress that the third runway is important to general aviation (GA) pilots and brings value to the airport. David Hughes spoke about the existing (poor) pavement condition. FAA does not see a need for three runways, so stopped funding any rehabilitation of 6-24 many years ago. Hugh Field asked if the runway could be shortened to allow southwest industrial park development to go forward and to reduce the cost of needed rehabilitation. Hughes stated it could be shortened as commercial jets don't use it and private planes don't need as long a runway to land. Newton stated that bigger private jets still need close to 5,000 feet. Keith Kaspari stated that FAA nav aids would need to be moved in if the ends of the runway were removed. Rick Young asked why 6-24 has already been closed for the winter season since there has not yet been any adverse weather. Joel Harris stated that no other airport in .Iowa has three runways and it makes us stand out from the others. Young asked about standards used to evaluate pavement, if FAA is not funding, are lower standards applied. Hughes explained the standards (still need to pass FAA inspection). Young stated if city officials are concerned about economic development the city should fund rehabilitation needed to keep 6-24 open, as 93% of landings are by private planes. Kaspari spoke about air traffic stats; operations are down over the previous year. Field stated that Board will look at a cost -benefit analysis next tnonth when the pavement analysis by AECOM is completed, rather than just looking at the benefits now. Steve Dust moved public comments be received and placed on file; seconded by Humble. Ayes: 5. Motion carried. Page 284 of 291 1V. REPORTS A. Director's Report. Kaspari reviewed written report. Scott Voigt again asked why Runway 6-24 is already closed for the winter season when it can be closed at a moment's notice when weather requires closure. Dust moved that airport keep Runway 6-24 open unless weather requires closure, that runway is reopened as soon as possible once it is clear and that the standards followed to make the decision to close should be clearly understandable. Seconded by Humble. Ayes: 5. Motion carried. B. Planning & Development Report. N/A; Projects discussed under Old Business. C. Legislative Updates. Discussed probability of upcoming government shutdown. D. Monthly Airport Reports. Board reviewed year-to-date budget, AA performance and fares. V. BOARD APPROVAL A. Approval of Minutes of October 24, 2017 Regular Meeting. Minutes of the October 24, 2017 meeting were reviewed. Allen moved approval of the minutes, seconded by Dust. Ayes: 5. Motion carried. B. Approval of Minutes of November 17, 201.7 Special Meeting. Minutes of the November 17, 2017 meeting were reviewed. Voigt moved approval of the minutes, seconded by Allen. Ayes: 5. Motion carried. C. Motion to Receive and File October 2017 Expenses. All operating and capital expenses were reviewed. Voigt questioned amount paid to Schumacher Elevator, Combs explained this was a quarterly invoice for monthly service. Moved by Allen, seconded by Humble, that expenses be received and placed on file. Ayes: 5. Motion. carried. D. Motion to Receive and File November 2017 Expenses. All operating and capital expenses were reviewed. Moved by Allen, seconded by Humble, that expenses be received and placed on file. Ayes: 5. Motion carried. E. Approval of T --Hangar Lease with David Hummel. Moved by Allen, seconded by Dust, that lease be approved. Ayes: 5. Motion carried. 2 Page 285 of 291 VU OLD BUSINESS A. General Discussion — Southwest Development. Noel Anderson reviewed development being looked at along Leversee Road and explained why this site is desired, including close proximity to rail line, ability to add a rail spur, and located across the road from the company's existing building. B. Update: Draft Copy of the Airport Pavement Management Program_ Reviewed parts of August draft, should have final copy for review next month. C. Update: Regional Fly -In — Aircraft Owners and Pilots Association (AOPA). Kaspari stated that he had spoken with an AOPA Rep about hosting a future fly -in. With upcoming projects, 2019 would be the best year for ALO to host. D. Update: FAA Funded Construction — Taxiway Charlie and Runway 12/30 Repair. Kaspari stated that a stop -order had been issued on construction and runway 18-36 was reopened. Construction will continue in the spring. E. Update: Parking Lot Equipment Replacement Project. Kaspari reported that specs are ready to go, need to change bid due dates and will put out for bid after January 1s`. Should be a spring 2018 project. F. Update: USDOT — General and/or Additional Board Discussion on Community Recommendation. Kaspari reported there have been no updates from USDOT on air carrier selection. Will need to reach out to whichever airline gets the bid and would be best to plan a visit to their office. VII. NEW BUSINESS A. Discussion of FY -2019 Budget. Preliminary budget numbers for FY -19 will be due in. January, probably before the next meeting. Dust requested that a copy of the preliminary budget be sent to Board members for review. B. Farm. Agreement Discussion. Waiting for final 2017 tally from farmer. Item will be picked up for discussion in January. C. Discussion of Meeting Dates and Times for CY-2018 Board Meetings. Kaspari asked if the 4th Tuesday at noon meetings still work best for everyone. Consensus was that this time works as good as any other. VIII. STAFF AND BOARD MEMBER COMMENT Kaspari wished everyone happy holidays. 3 Page 286 of 291 IX. ADJOURNMENT Moved by Dust, seconded by Voigt, that meeting be adjourned at 1:30 p.m. Respectfully submitted,, Hugh M. Field, Chairperson 4 Page 287 of 291 CITY OF WATERLOO Council Communication Airport Board Meeting Minutes of January 23, 2018. City Council Meeting: 2/26/2018 Prepared: 2/21/2018 REVIEWERS: Department Reviewer Action Date Airport Kaspari, Keith Approved 2/21/2018 - 11:03 AM Clerk Office Higby, Nancy Approved 2/21/2018 - 11:49 AM ATTACHMENTS: Description Type ® Airport Board Meeting Minutes, January 23,2018 Cover Memo SUBJECT: Airport Board Meeting Minutes of January 23, 2018. Submitted by: Submitted By:Keith Kaspari, Director of Aviation Page 288 of 291 MINUTES WATERLOO REGIONAL AIRPORT BOARD Tuesday, January 23, 2018 I. ROLL CALL Chairperson, Field, called the meeting to order, without a quorum, at 12:03 p.m. Board Members Present: Hugh Field, Scott Voigt and Dr. Linda Allen. Board Members Absent: Steve Dust, Chuck Needham, Arlene Humble and Gwenne Berry. City Officials Present: Noel Anderson and Adrienne Miller, Planning and Zoning; Councilperson Margaret Klein, Councilperson Chris Shimp. Airport Staff Present: Keith Kaspari, Airport Director and Sheila Combs, Airport Bookkeeper. Other Attendees: David Hughes and Doug Schindel, AECOM; Tim Newton, Livingston Aviation; Joel Harris, Dennis Hanson, David Deeds and Tim Jamison. II. AGENDA AS RECEIVED OR AMENDED Moved by Scott Voigt, seconded by Linda Alien, to approve the agenda. Ayes: 2. III. PUBLIC COMMENTS Field asked if all comments to be made would pertain to the possible closure, or rehabilitation, of Runway 6-24 and, if so, if it was okay with all in attendance to skip to Items VII. C and D, Presentation by David Hughes (AECOM) on the Pavement Management Study and Analysis and Estimates for the Rehabilitation of Runway 6-24. Public comments and questions would then be taken during the Board discussion. No objections were heard. IV. REPORTS N/A V. BOARD APPROVAL N/A VI. OLD BUSINESS N/A 1 Page 289 of 291 VII. NEW BUSINESS C. Update: Board Discussion of Estimate for the Rehabilitation of Runway 6-24 (*). And D. Discussion of the Airport Pavement Management Study and Analysis (*). *Presentation and discussion of both items ran together. David Hughes presented an overview of the Pavement Management Program prepared by AECOM, including a recommended 10 -Year Maintenance and Repair Plan for FAA Airport Improvement Plan (AIP) funding, based on current and projected pavement conditions. Mr. Hughes also presented AECOM's separate study of the pavement condition of Runway 6-24, most of which is rated either Poor or Very Poor. Hughes explained FAA criteria for AIP funding and why this third runway was ineligible for any funding for either routine maintenance or rehabilitation. Mr. Hughes also presented three possible repair cost estimates ranging from Complete Reconstruction estimated $5,200,000; A 2 -inch Mill and Overlay with an estimate of $2,100,000; and, An extensive project to provide Joint and Crack Repair estimated at $290,200. Hughes was asked to provide an estimate of how long each repair might last: Complete Reconstruction approximately 40 years; The 2 -inch Mill and Overlay approximately 10 years; and, The Joint and Crack Repair approximately 3 years. The Airport Board discussed the possibility of reducing runway rehabilitation costs by reducing the length and width of Runway 6-24. Hughes and Kaspari pointed out that while this might provide some overall savings, additional costs would be incurred to move lighting and FAA -owned navigational aids via a standard cooperative and reimbursable agreement between the City of Waterloo and the Federal Aviation Administration. The Board asked Hughes and Schindel if they would be able to prepare a more detailed report of costs for the repair options and directed Kaspari to contract with AECOM in an amount not to exceed $5,000, to pay for this report. Members of the public stated that they realized the Airport does not have funds available for these repair options but feel that the City should invest in the Airport, especially as they continue to take Airport farm ground for commercial projects, thereby reducing farming revenue, which has provided a large portion of the revenue in the Airport operations budget each year. Kaspari pointed out that the City is going to need to bond for, or somehow supplement, the City match portion of the AIP funds for the future reconstruction of Primary Runway 12-30, as the current annual revenue from the FAA -approved Passenger Facility Charge program will not cover the 10% local match needed for completion of that project. 2 Page 290 of 291 VIII. STAFF AND BOARD MEMBER COMMENT Other agenda items were briefed to the Board Members as information only. No Board approvals or other actions were taken, due to the lack of a quorum, so the remaining Agenda items will be forwarded to the February meeting. Field and Voigt both stated that they will be unable to attend on February 27, 2018 and would like to move the meeting date up. Staff will poll remaining Board members on their availability on February 20, 2018. IX. ADJOURNMENT Hearing no objections, Field adjourned the meeting at 1:25 p.m. Resctfully submitted, Hugh M. Field, Chairperson 3 Page 291 of 291