Loading...
HomeMy WebLinkAboutMinutes-01/05/2009January 5, 2009 The Council of the City of Waterloo, Iowa, met in Regular Session at City Hall Council Chambers, Waterloo, Iowa, at 5:30 p.m., on Monday, January 5, 2009. Mayor Timothy J. Hurley in the Chair. Roll Call: Cole, Getty, Greenwood, Steve Schmitt, Welper, Reggie Schmitt. Absent: Hart. Moment of Silence. Pledge of Allegiance: Doug Carter, Fire Chief. 128383 - Reggie Schmitt/Steve Schmitt that the Agenda, as amended, for the Regular Session on Monday, January 5, 2009, at 5:30 p.m., be accepted and approved. Ayes: Six. Absent: Hart. Motion carried. 128384 - Reggie Schmitt/Steve Schmitt 128385 that the Minutes, as 2008, at 5:30 p.m., Motion carried. CONSENT AGENDA proposed, for the Regular Session on Monday, December 22, be accepted and approved. Ayes: Six. Absent: Hart. Reggie Schmitt/Steve Schmitt that the following items on approved: the consent agenda be received, placed on file and a. Resolution to approve the following: 1. Resolution approving Schedule AP642, pp. 1-73, dated January 5, 2009, in the amount of $2,117,900.73,' 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. 2009-1. b. Motion to approve the following: 1. Tom Klein and Mark Suchy, Golf Maintenance II, to attend Iowa Conference and Trade Show in Des Moines, Iowa on January 20-22, costs not to exceed $280.00. 2. James Bolger, Golf Manager, to attend Iowa Turfgrass Conference Show in Des Moines, Iowa on January 20-22, 2009, with costs not $435 00 Turfgrass 2009, with and Trade to exceed 3. Kye Richter and Melissa Ludwig, Police Officers, to attend BLS Instructor Course in Waterloo, Iowa on January 24, 2009, with costs not to exceed $230.00, including use of city vehicle. c. Beer/Liquor License Permit Application Class C Tony's Trattoria, Inc., 3251 West 4th Street (Renewal) (Expires 1/31/10) (Includes Sunday Sales) The Other Place, 360 E. Ridgeway Avenue (Renewal) (Expires 1/25/10) (Includes Sunday Sales) Electric Park Ballroom, 310 W. Conger Street (Renewal) (Expires 1/27/10) (Includes Sunday Sales) d. Liquor License Permit Application Class E Save More Foods, 1975 Franklin Street (New) (Expires 12/23/09) Sunday Sales) e. Wine License Permit Application Class B Save More Foods, 1975 Franklin Street (New) (Expires 12/23/09) Sunday Sales) (Includes (Includes January 5, 2009 Page 2 Consent Agenda continued f. Beer License Permit Application Class C Save More Foods, 1975 Franklin Street (New) (Expires 12/23/09) (Includes Sunday Sales) Ayes: Six. Absent: Hart. Motion carried. HEARINGS 128386 - Greenwood/Steve Schmitt that proof of publication of notice of public hearing on request of Robert Fischels to rezone from "C -1,C -Z" Conditional Zoning District to "R-4" Multiple Family Residence property generally located at 209 Brookeridge Drive for the purpose of establishing a child care facility, as published in the Waterloo Courier on December 19, 2009, be received and placed on file. Ayes: Six. Absent: Hart. Motion carried. 128387 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Greenwood/Steve Schmitt that the hearing be closed and recommendation of approval of Planning, Programming and Zoning Commission be received and placed on file. Ayes: Six. Absent: Hart. Motion carried. 128388 - Greenwood/Steve Schmitt that "an Ordinance amending Ordinance Ordinance by adding Subsection No. 400 Property", be received, placed on file, time. Ayes: Six. Absent: Hart. Motion 128389 - Greenwood/Steve Schmitt No. 2479, as amended, City Zoning to Section 2A-5, Rezoning Certain considered and passed for the first carried. that rules requiring ordinances to be considered prior meetings be suspended. Ayes: Six. Absent: 128390 Greenwood/Steve Schmitt and voted for passage at two Hart. Motion carried. that "an Ordinance amending Ordinance No. 2479, as amended, City Zoning Ordinance by adding Subsection No. 400 to Section 2A-5, Rezoning Certain Property", be considered and passed for the second and third times and adopted. Prior to a vote on the above motion, the following comments were heard. Councilperson Steve Schmitt asked 'if rtfierebr'e any issues regarding the timely manner we need to necessarily rush thi's through and is Mr. Fischels trying to get this done by a certain time., Councilperson Steve Schmitt stated that he just wonders if the neighbors are going to feel that they have had adequate exposure or made aware of this. Noel Anderson, Community Planning & Development Director, reported there was no opposition at the Planning, Programming and Zoning Commission meeting concerning this request. The property was zoned R-4 in the past. It was rezoned as C-1,CZ for the Sylvan Learning Center. The majority of the area surrounding the site is actually zoned R-4, so its pretty compatible with the existing zoning in the area. There were no concerns from neighbors. Following comments a vote was taken on the above motion with the following result. Ayes: Six. Absent: Hart. Ordinance adopted and upon approval by Mayor assigned No. 4936. • • January 5, 2009 Page 3 UNFINISHED BUSINESS 128391 - Getty/Reggie Schmitt that communication from Superintendent of Central Garage transmitting recommendation of award of contract in the amount of $83,163.00 to Truck Country of Cedar Rapids, Iowa in conjunction with Purchase of One Current Year Single Axle Dump Truck with 12 -Foot Box, be received, placed on file and "Resolution approving award of said contract", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2009-2. 128392 - Getty/Reggie Schmitt that communication from Fire Chief transmitting recommendation of award of bid in the amount of $72,799.00 to Harrison. Truck Centers of Elk Run Heights, Iowa in conjunction with Purchase of Ambulance Chassis, be received, placed on file and "Resolution approving award of said.bid", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2009-3. DOCUMENTS 128393 - Cole/Reggie Schmitt that communication from Superintendent of Waste Management Services transmitting Contracts, Bonds and Certificates of Insurance in the amount of $314,823.00 with Prairie Construction Company of Waterloo, Iowa in conjunction with Storage Building for Water Pollution Control Facility, be received, placed on file and "Resolution approving said documents", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2009-4. 128394 - Cole/Reggie Schmitt that communication from City Planner transmitting permanent easement agreement with Rose of Waterloo LP to allow for a portion of public sidewalk to encroach approximately 6 feet onto private property generally located at the northwest corner of Oak Avenue and Mulberry--S't`teet,' be received, placed on file and "Resolution approving said agreement' :be •adopted and Mayor and City Clerk authorized to execute same. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2009-5. 128395 - Cole/Reggie Schmitt that communication from City Planner transmitting encroachment agreement with Rose of Waterloo LP to allow for five decorative pillars to encroach into public right-of-way generally located along Mulberry and Utica Streets as well as Oak Avenue extending between 0.2 feet to 0.8 feet into the right-of-way, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2009-6. NEW BUSINESS 128396 - Welper/Reggie Schmitt that communication from General Manager of Waterloo Water Works transmitting request to certify the amount of $1,64 for work performed by the Water Works at 91 East Parker Street, together.,w hY`recommendation of approval of Board of Waterloo Water Works Trustees, be`received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Treasurer of same. Ayes:,. Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2009-7. January 5, 2009 New Business continued 128397 Welper/Reggie Schmitt that communication from General Manager of Waterloo Water Works transmitting request to certify the amount of $2400:00 for work performed by the Water Works at 819 Williston, together with recommendation of approval of Board of Waterloo Water Works Trustees, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Treasurer of same. Ayes: Six. Absent: Hart. Page 4 Resolution adopted and upon approval by Mayor assigned No. 2009-8. ORAL PRESENTATIONS 128398 Mayor Hurley stated that he noticed in reading the minutes from the December 22, 2008 council meeting that there was conversation that started with the Center For The Arts' request to apply for a gaming grant and that conversation turned to tax relief. Councilman Getty visited him the following Tuesday with questions, and there have been Letters to The Editor and Call The Courier questions about what happens to these revenues and why aren't we getting lower taxes. The city has several types of revenues that come from the gaming operations. There is a host city fee required by state law, which is .5 percent of the adjusted gross revenue. Black Hawk County also gets .5 percent, which is also tax relief on our county taxes. There is a 1 percent contractual development fee, which is in lieu of a turnstile admission fee. Isle of Capri pays property taxes on all land. :and buildings, they contribute to our hotel/motel taxes and there were two''$1'million 'disbursements to the city before they even started operations. The B1 k Hawk County Gaming Commission, which holds the gaming license, does quarterly discretionary grants. The city host fee and the development fee eactiv brought in $376,000.00 last year and $195,000.00 six months year to date. You might ask why does the development fee look suspiciously the same as the host 'city fee which is only .5 percent. The city's development agreement says that it will be .5 percent for the first couple of years and on the anniversary of the third year, which is July 1, 2009, it will revert to the full 1 percent. Isle of Capri's buildings and land are valued at over $73 million. Its estimated that Isle of Capri will pay total property taxes of about $3.2 million school, county and city in 2010. They paid $1.35 million this year and $575,000 of that is the city's. Mayor Hurley noted the hotel/motel taxes are much higher than they were in the past, and he thinks that is largely due to the higher occupancy rate enjoyed by the Isle Hotel. Mayor Hurley reported that the two $1 million dollar advances, the .5 percent host city fee, the 1 percent contractual development fee and property taxes all go into the general fund. That was all forecasted in the budget adopted by council last year. Council approves a formula for the hotel/motel taxes that go to the Convention & Visitors Bureau so that they can run their operations and their grant process, maintenance of the Five Sullivan Brothers and the City Council has a discretionary fund. Councilperson Greenwood asked if the.hotel/motel tax is voted upon by the people of Waterloo, if a public vote sets t1f. levy. Mayor Hurley responded that the hotel/motel rate is set by state law*,': .. Councilperson Greenwood commented that its different in other cities in Iowa that he stays in, that its higher in`Des'Moines than it is in Waterloo. James Walsh, City Attorney, stated that the state sets the maximum. The cities are free to be lower than the maximum, but the City of Waterloo is at the maximum. Mr. Walsh stated he doesn't know how Des Moines is getting more, but maybe they are compounding state sales tax and the city tax together. Mr. Walsh noted that the legislature is likely to•address this again this session. Its on the League's agenda, its on everybody's agenda as an item that is going to be addressed, so that Iowa can get compatible. Anybody who travels knows that Iowa is on the low side of what cities are charging for hotel taxes. Mayor Hurley stated that one of the proposals drifting about right now is to allow cities to go up to 9 percent or to charge a 50 cent per room per night additional fee, just as an idea for alternative revenue. The point about our hotel/motel taxes is that they are growing, and when we use hotel/motel funds toward the maintenance of the Five Sullivan Brothers Convention Center, its money that would otherwise come from capital budget or general operating funds. The council has discretionary hotel/motel funds which they help the general fund by approving proposals to use part of that funding for public safety overtime for events like My Waterloo Days, Cattle Congress and 4th Street Cruise. • January 5, 2009 Oral Presentations continued Mayor Hurley noted that a couple of fiscal years ago, we had an approved budget where we were going to lay off four police and four fire positions. Using the $1 million development fee gift, we were able to save those positions and they are still in existence today. That is general fund tax relief. In addition, the $1 million development fee gift in 2005 was used as follows: $300,000.00 went to the Youth Pavilion building project; $50,000.00 went to the Mayor's YES+ Summer Youth Program, which is general fund; $30,000.00 to WDC as a match for the VanderWalle contract, which is general fund; $10,000.00 for a council approved project; and we had $200,000.00 left over that went into the following year's general fund to help close the budget gap, so it went straight to tax relief. The $1 million to WDC was mutually designated by the City of Waterloo and the Black Hawk County Gaming Association for the Phelps Youth Pavilion and the Riverloop Expo projects. The City has received at least five competitive discretionary grants from the Black .I awk County Gaming Association for just under $500,000.00, which was used for ;`library enhancements, some emergency home repairs supplemental, so they are things that kept the city moving. Mayor Hurley stated that in his mind that is all tax relief and tax relief is what is written into our agreement. One of the ways of defining that would be an outright tax reduction. Another way of looking at it is that our levy rate remains stable in light of rising inflationary costs or that our general fund city services remain in place or expand with a constant or lower levy rate. For some of those capital items that the Isle monies have funded, the city doesn't have to borrow money and pay it off for 15 or 20 years at about 20 percent more. Mayor Hurley stated we have had all forms of tax relief with the money that we have received so far, our levy rates have_ decreased in three out of the last four years, and any increase has been less than the rate of inflation. Mayor Hurley stated the city has been able to maintain city services, its pretty much stable, in fact even add some positions like downtown maintenance and getting the police department and fire department back to their authorized levels. Our property taxes levy has remained stable to lower in the last 15 years span and any increase less than the rate of inflation. Mayor Hurley reviewed the Admission Fee Administration and Development Agreement with Isle of Capri, which outlines the .5 percent, the 1 percent, the $1 million gift and the $1 million development fee. Mayor Hurley reviewed a letter he wrote June 2007 to council members informing them that the Black Hawk County Gaming:' issoeiation was requesting that counties around us be included in the proceeds''`as'that was Black Hawk County Gaming Association's original intent, but the original agreement language did not reflect that so we negotiated with them. The county and the cities in Black Hawk County will receive 60 percent instead of 50 percent of the Black Hawk County Gaming Association's total revenue for property tax relief. After June 30, 2010, the 60 percent shall become 50 percent. An amount up to 10 percent of the total revenue may be allocated by Black Hawk County Gaming Association to entities or projects outside Black Hawk County to support the Cedar Valley. Mayor Hurley reviewed a 2004 document comparing the fifty cent admission fee and the 1 percent development fee which shows why Waterloo went with the development fee rather than a 50 cent turnstile fee. Mayor Hurley noted that in every Iowa casino case, it panned out to a total difference of over $700,000.00. Page 5 Mayor Hurley reviewed the city's Isle of Capri Gaming Fees and Development Fees report as of the end of December 2008. For Fiscal Year 2008, the city received $375,867.00 for each of the development fees and the host city fees, and this fiscal year to date the city has received $194,734.00 for both of the fees. Mayor Hurley reviewed the city's hotel/motel tax report for 2009. The city has received $770,723.94 hotel/motel funds through two quarters, and last year at this time in the same two quarter, the city had received almost $559,000.00. Mayor Hurley reviewed a letter write&Y by':;him ,in September 2007 to the Black Hawk County Gaming Association regerd'i'n4 the discretionary monies. The city had submitted 14 requests for gaming funds,and they asked him to prioritize them and the bullets show how he prioritized them. The city was awarded some of the requests, but they didn't pay for things like a city recreation master plan. Mayor Hurley reviewed grants awarded to the city for items such as the emergency home repairs, the learning center expansion at the library, the Cultural and Arts large digital sign, the infield turf project, the $190,000.00 Riverfront Stadium Project, and the Hoing-Rice softball stadium improvements. January 5, 2009 Oral Presentations continued Mayor Hurley reviewed a letter he wrote in September 2005 to a lady who had questioned what the city was doing with, the $1 million. His letter listed the projects, which was basically for Lund for tax relief. Mayor Hurley reviewed a recent note from Michel;e,rWeidner, Chief Financial Officer, on the estimated taxes the Isle of Capri will pay on its $73 million valuation. Mayor Hurley reviewed the tax rate history :tor the city from FY05 through FY09. Mayor Hurley noted that the city has had., three consecutive years of tax levy reduction. Mayor Hurley reviewed the gaming receipts history showing what the city budgeted and what the city has received. In Fiscal Year 2008 we budgeted $450,000.00 but that was because we chose to budget conservatively. We didn't know what was going to happen the first year of operation, but the city received a total of $752,000.00 between the development fee and the host city fee, which went to the general fund for tax relief. So far this year through six months the city has received $390,000.00, which is general fund direct tax relief. Mayor Hurley reviewed the Isle of Capri's impact on property taxes. If we took all that the city has received, including the partial property taxes for 2009, that would be 65 cents on the levy. If the city did not have that revenue and we did everything that committed to in all the programs and the people, that would be another 65 cents on the levy. Mayor Hurley noted the tax savings on homes with a taxable value of $100,000.00, $150,000.00, and $200,000.00, which would be $65.00, $97.50 and $130.00 in taxes. Page 6 Mayor Hurley The property the fees on the programs that is why services and reviewed all the grants and gifts received from the Isle of Capri. taxes from all gaming revenue, property taxes, one time gifts and a $100,000.00 taxable hbine'-would be $298.00 less in taxes with all , people and initiatives * nain1:ng the same. Mayor Hurley stated he says there is tax reli'ef because we are able to keep up city in some cases add just a little bit more to do a little better job. Mayor Hurley noted he included some colored forms from the Chief Financial Officer's annual budget presentation just to show the history of our tax levy rate against inflation. Mayor Hurley stated the city does have a high tax levy rate, but we get a really good bang for our buck, and the gaming revenues have a positive impact. Getty/Reggie Schmitt that the above oral comments be received and placed on file. Ayes: Six. Absent: Hart. Motion carried. ADJOURNMENT 128399 - Welper/Getty that the Council adjourn at 6:00 p.m. Ayes: Six. Absent: Hart. Motion carried. -r,,fedy Nancy Ec'rt, CMC City Clerk