HomeMy WebLinkAbout2025-05-05 I01E_01 28E Agreement Amendment_Bravo Greater Des MoinesAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: May 5, 2025
AGENDA ITEM:Consideration of approval of resolution authorizing the execution of an
agreement, made pursuant to Iowa Code Chapter 28E, between the City of
Waukee, Iowa and Bravo Greater Des Moines, Inc. for the benefit of cultural
community
FORMAT:Resolution
SYNOPSIS INCLUDING PRO & CON: The City of Waukee, along with 16 other Des Moines area
metro government entities, partner with Bravo Greater Des Moines, Inc. to
support the collaboration and coordination of funding among cultural
organizations of the Greater Des Moines area. Funding to Bravo is primarily
derived through hotel/motel tax revenues that each community receives in
accordance with Chapter 423A of the Code of Iowa.
The current agreement signed in 2012, between Waukee and Bravo outlines
that the arranged payment to Bravo be 2/7ths (or 28.57%) of Waukee’s
collected hotel/motel tax. For Fiscal Year 2024, the total amount provided by
Waukee to Bravo was $45,000.
With recent legislative changes to the property tax system in Iowa,
specifically limitations on property tax revenue growth imposed by House File
718, this necessitates a comprehensive review of the City’s expenditures and
revenue allocation strategies to ensure the City’s long term financial stability.
The proposal presented recommends amending the City’s existing 28E
agreement with Bravo to reduce the City’s allocation of hotel/motel tax
revenue to Bravo from 28.57% to 25%. This adjustment is projected to
generate a modest increase in the City’s available hotel/motel tax revenue that
can be kept by the City, providing greater flexibility in funding cultural,
economic development, and recreational projects in the city while still
maintaining a significant level of support to advance regional cultural
priorities. It should be noted that as Waukee continues to add hotels, this
increase in retained funds for the City will continue to grow over time
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
Current Agreement – Bravo projected contributions (FY26) = $85,710
Proposed Agreement – Bravo projected contributions (FY26) = $75,000
Difference = $10,710
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COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: Staff recommends approval of the Amended 28E with Bravo
Greater Des Moines, Inc.
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
II. Proposed 28E Agreement
PREPARED BY:Brad Deets, City Administrator
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION:
DATE OF PUBLICATION:
THE CITY OF WAUKEE, IOWA
RESOLUTION 2025-
AUTHORIZING THE AMENDMENT TO THE INTERGOVERNMENTAL
AGREEMENT, MADE PURSUANT TO IOWA CODE CHAPTER 28E, BETWEEN THE
CITY OF WAUKEE, IOWA AND BRAVO GREATER DES MOINES INC. FOR THE
BENEFIT OF THE CULTURAL COMMUNITY
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal
Organization; AND,
WHEREAS, Bravo Greater Des Moines, Inc., an Iowa not-for-profit corporation, is organized
for the purpose of assisting the cultural community of the Greater Des Moines area; AND,
WHEREAS, the City of Waukee values its partnerships with local organizations that provide
essential services and contribute to the quality of life for its residents; AND,
WHEREAS, the enactment of HF 718 by the Iowa State Legislature imposes limitations on the
amount of property tax revenue that municipalities, including the City of Waukee, are permitted
to collect; AND,
WHEREAS, this aforementioned state law necessitates a comprehensive review and potential
adjustment of the City’s budget, expenditures, and financial commitments to ensure continued
fiscal responsibility and the sustainable provision of City services; AND,
WHEREAS, the City Council deems it necessary and in the best interest of the City of Waukee
and its residents to adjust the percentage of designated hotel/motel tax revenue allocated to
Bravo Greater Des Moines, Inc. to align with current fiscal conditions and modify the Agreement
accordingly.
NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council in session this
5th day of May, 2025, that the proposed Amendment to the Intergovernmental 28E Agreement
with Bravo Greater Des Moines, Inc. is hereby approved.
____________________________
Courtney Clarke, Mayor
Attest:
___________________________________
Rebecca D. Schuett, City Clerk
RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN
R. Charles Bottenberg
Chris Crone
Rob Grove
Anna Bergman Pierce
Ben Sinclair
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AGREEMENT BETWEEN THE CITY OF WAUKEE AND
BRAVO GREATER DES MOINES, INC.
This Agreement is made and entered into on this ________ day of ________________,
2025, (the “Execution Date”) by and between the City of Waukee, Iowa (”Waukee”), and
Bravo Greater Des Moines, Inc. (“Bravo”) an Iowa not-for-profit corporation, pursuant to
the provisions of Chapter 28E, Code of Iowa. The Agreement shall be effective with respect
to Commitments beginning July 1, 2025 (the “Effective Date”).
That inasmuch as Bravo is organized for the purpose of assisting the cultural community
of Polk County and contiguous counties (the “Greater Des Moines Area”) in providing
an enriched quality of life by increasing cultural awareness, advocacy, and funding,
as well as by fostering collaboration among cultural organizations.
That the City of Waukee has as a goal the unification and coordination of monies for the
use and benefit of the cultural community and specifically the cultural organizations
eligible for funding by Bravo.The City of Waukee is committed to the reasonable
stewardship of monies for arts and cultural purposes.
That the City of Waukee and Bravo entered into an Agreement effective on April 2, 2012,
which agreement was filed in the Iowa Secretary of State Office on April 16, 2012. In
order to continue the underlying purpose of such prior Agreement, the City of Waukee and
Bravo desire to enter into this Agreement to replace the prior Agreement as of the Effective
Date.
That the City of Waukee and Bravo agree as follows:
I. DEFINITIONS
(1)"Hotel/Motel Tax" means a tax imposed in accordance with Chapter 423A of the
Code of Iowa, 2023, or similar successor provisions.
(2)"Hotel/Motel Tax Revenues" means the funds remitted to the City of Waukee by
the Treasurer of the State of Iowa from the local Transient Guest Tax Fund in
accordance with provisions of Chapter 423A of the Code of Iowa, 2023, and the
rules promulgated by the Director of the Iowa Department of Revenue thereunder,
or similar successor provisions, representing the proceeds collected by the State
of Iowa from the Hotel/Motel Tax imposed by the City of Waukee.
II. PRE-CONDITIONS TO OBLIGATIONS OF THE CITY OF WAUKEE
The parties understand and intend that the obligation of the City of Waukee to make the
payments hereunder shall be limited to the Hotel/Motel tax revenues available to the city of
Waukee and shall not constitute legal indebtedness of the City of Waukee within the meaning
of any applicable constitutional or statutory debt limitation. In the event that any of the
provisions of this Agreement are determined by a court of competent jurisdiction to create,
will result in the creation of, such a legal indebtedness of the City of Waukee, the
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enforcement of the payment provisions of this Agreement shall be suspended and the
Agreement shall at all times be construed and applied in such a manner as will preserve the
foregoing intent of the parties.
III. COVENANT FROM CITY OF WAUKEE
(1) The City of Waukee does hereby agree to pay Bravo for the promotion of arts and
cultural activities in the Greater Des Moines Area for the entire term of this
Agreement and all extensions thereof, 25% of its Hotel/Motel Tax Revenues
attributable after the Effective Date (the “Commitment”) to be distributed and
expended by Bravo in the manner set forth in this Agreement and the bylaws of
Bravo.
(2) The City of Waukee shall take all action necessary to implement disbursement of
the Commitment. Payment of the Commitment to Bravo shall be made in
installments, paid no later than 30 days following the date on which the City
receives the remittance of Hotel/Motel Tax Revenues.
(3) If Chapter 423A of the Code of Iowa is amended to permit and the City of Waukee
subsequently imposes a Hotel/Motel Tax in excess of 7%, the Commitment shall be
limited to 25% of Hotel/Motel Tax Revenues derived from the initial 7% of tax.
IV. PURPOSE
The purpose of this Agreement is to facilitate and support the cultural community of the
Greater Des Moines Area in providing an enriched quality of life by increasing cultural
awareness, advocacy and funding as well as by fostering collaboration among cultural
organizations and increasing stability of Bravo in carrying out its goals for the benefit
of the Greater Des Moines Area. This Agreement is not intended to establish a separate
legal entity.
V. ACCOUNTING OF BENEFITS
(1) Bravo shall administer the undertakings between the City of Waukee and Bravo
as described herein, and Bravo shall acquire, hold and disburse its assets,
including the Commitment, in accordance with the purpose and terms stated
herein and the governing documents of Bravo. Upon request, Bravo shall provide
to the City of Waukee copies of the governing documents, including applicable
bylaws and policy guidelines. The City of Waukee hereby appoints its City
Administrator to administer this Agreement with Bravo, and Bravo hereby
appoints its President to administer this Agreement with the City of Waukee.
Bravo shall post on its website and send via email to the City Administrator or
its designee advance notice of the time, location and agenda for its board
meetings and shall provide minutes of action taken via email to the City
Administrator or its designee.
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(2) The City of Waukee and Bravo acknowledge that Polk County and the
communities within the Greater Des Moines Area that make payment
commitments to Bravo (Polk County and the described communities are together
the “Participating Communities”) and not-for-profit cultural organizations
within such Participating Communities may, as part of a cultural improvement
capital campaign, apply for grant funding. Bravo shall establish a separate fund
to provide matching funds to support the capital campaigns for cultural
improvements of Participating Communities and of not-for-profit cultural
organizations within such Participating Communities (the “Fund”). Each fiscal
year, Bravo shall allocate a minimum of $150,000 and a maximum of $450,000
of the Commitment payments from all Participating Communities for such
cultural improvement capital campaigns. For a not-for-profit cultural
organization to be eligible to receive a disbursement from the Fund, the not-for-
profit cultural organization must make a presentation regarding its capital
campaign to Bravo before the not-for-profit cultural organization approaches any
of the Participating Communities for a contribution. Bravo, in its reasonable
discretion shall make determinations on Fund disbursements for proposed capital
campaigns within the Participating Communities in such manner that will
enhance the competitiveness of the grant funding applications and further the
purpose of this Agreement. The City of Waukee and Bravo acknowledge that any
matching funds provided by Bravo for a not-for-profit cultural organization’s
capital campaign shall not be intended or construed as the sole or exclusive
capital funding source to be provided by Participating Communities for such
project.
(3) Bravo shall present to the City Administrator of the City of Waukee no later
than 30 days after Bravo’s Board of Directors approves Bravo’s audited
fiscal year financial statements, a full accounting of Bravo’s revenues,
disbursements and operations for such year in a form reasonably acceptable
to the City (“Financial Statements”). The Financial Statements will include a
summary of the disbursement awards made by Bravo during the fiscal year,
including for each recipient of an award the amount awarded and a brief description
of the approved uses for the award. Upon request, Bravo shall provide the City of
Waukee with copies of recipient funding Agreements. The fiscal year of Bravo ends
each June 30.
(4) The Financial Statements shall be prepared by Bravo and certified by an
independent auditor selected by Bravo.
VI. OPERATIONS AND FINANCES
Bravo shall prepare and submit to the Waukee City Council prior to the commencement of
each of Bravo’s fiscal years a distribution plan for public funds (the “Plan”). The Plan for
the 2025-26 fiscal year shall be submitted to the Waukee City Council prior to the Effective
Date. All expenditures of public funds by Bravo shall be made pursuant to the Plan.
Notwithstanding anything this Agreement to the contrary, Bravo may, once each fiscal year,
submit a revised plan to the Waukee City Council and the governing bodies of the other
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Participating Communities to reallocate up to 10% of the Commitment payments from the
city of Waukee and contributions by other Participating Communities for the fiscal year.
VII. DURATION AND TERMINATION
(1) This Agreement shall continue in effect from the Effective Date until terminated in
accordance with the terms of this Article VII.
(2) This Agreement may be terminated by either party as provided in this paragraph. Any
such termination may be accomplished only by delivery of notice to the other party
not later than January 1 of any given year after the year ending December 31, 2026
and shall be effective on July 1 occurring eighteen (18) months after January 1
following the giving of the required notice.
(3) Notwithstanding paragraphs (2) or (3) above, in the event that any part of the
commitment is dispersed or expended by Bravo in violation of the terms of this
Agreement the City may deliver to Bravo a notice to cure or remedy such default or
breach within sixty (60) days and if such default or breach is not remedied within
such cure period, this Agreement shall promptly terminate.
(4) This Agreement shall terminate if Chapter 423A of the Code of Iowa is either: (a)
repealed or amended to remove the authority of the City of Waukee to collect the
Hotel/Motel Tax at a rate of at least 7% or (b) so modified that the purpose of the
Agreement can no longer be carried out. If the Agreement terminates pursuant to
the previous sentence, the termination date shall be June 30 coinciding with or
next following the effective date of the statutory change that causes the
termination.
(5) This Agreement shall terminate if an alternative, reliable funding source is secured
for Bravo that provides funding to Bravo, in the reasonable determination of the
Bravo board of directors, that is comparable in amount to the annual funding
streams Bravo has secured in the aggregate through 28E Agreements with the cities,
counties and municipalities of the Greater Des Moines Area (for example, if
Chapter 423A of the Code of Iowa were amended to increase the Hotel/Motel tax
and to direct a portion of the increase to Bravo in an amount comparable to the
annual funding streams expected from 28E Agreements already in place). If a
reliable alternative funding source is secured for Bravo, which partially replaces
the funds provided by the City of Waukee to Bravo, the amount of annual funding
provided to Bravo pursuant to this Agreement shall be reduced proportionately in
such amount as the parties may reasonably determine. If the Agreement terminates
pursuant to this paragraph, the termination date shall be the June 30 coinciding with
or next following the effective date of the alternative funding source that causes the
termination.
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(6) Any notice or demand required or desired to be given hereunder shall be in writing
and deemed given when personally delivered or when deposited in the United
States mail, postage prepaid, sent certified or registered, and addressed as follows:
If to the City of Waukee, to:
City of Waukee
230 W Hickman Road
Waukee, Iowa 50263
Attention: City Administrator
If to Bravo, to:
Bravo Greater Des Moines, Inc.
Kathleen K. Law
Nyemaster Goode Law Firm
700 Walnut Street, Suite 1600
Des Moines, Iowa 50309
With a copy to:
Bravo Greater Des Moines, Inc.
Attn: Sally Dix
801 Grand Avenue, Suite 250
Des Moines, IA 50309
or to such other address or person as hereafter shall be designated in writing by the
applicable party.
VIII. AMENDMENT OF AGREEMENT
Any amendment to this Agreement shall be made in writing upon Agreement of the City of
Waukee and Bravo and after appropriate discussion and public dialogue, and such
amendment has been approved by resolution of the City of Waukee Council.
IX. MISCELLANEOUS
(1) This Agreement has been made and entered into solely for the benefit of the goals
and objectives of the City of Waukee and Bravo as expressly provided herein and
is not intended to create any rights in any other person.
(2) Notwithstanding anything in this Agreement to the contrary, any liabilities, debts,
or other obligations experienced by Bravo as a corporation/body or its members
shall not be the responsibility of the City of Waukee.
(3) While this Agreement is in effect, the City of Waukee shall have the right to
designate one person to serve on the Board of Directors of Bravo.
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(4) It is the intention and expectation of Bravo and the City of Waukee that no
organization that receives funding from Bravo during the term of this Agreement
will approach the City of Waukee for additional operational funding during the
term of this Agreement. This expectation does not apply to: (1) any member of
Bravo that is owned, managed or operated by the City of Waukee or a political
subdivision of the City; or (2) capital campaigns.
(5) Each of the City of Waukee and Bravo shall pay its own costs incurred to negotiate,
amend, abide by or terminate this Agreement.
(6) After execution by the parties, this Agreement shall be filed with the Iowa Secretary
of State in an electronic format in accordance with the provisions of Iowa Code
§ 28E.8.
(7) As of the Effective Date, this Agreement is intended to replace the prior Agreement
referred to in paragraph four of the preamble to this document.
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BRAVO GREATER DES MOINES, INC.
By:
Print Name:
Print Title:
State of Iowa )
) ss.
County of Polk )
This instrument was acknowledged before me on , 2025, by
______________ as _______________ of Bravo Greater Des Moines, Inc.
Notary Public in and for the State of Iowa
THE CITY OF WAUKEE, IOWA
______________________________
Courtney Clarke, Mayor
ATTEST:
______________________________
Rebecca D. Schuett, City Clerk
STATE OF IOWA )
) ss:
COUNTY OF DALLAS )
On this _____ day of _______________, 2025, before me, the undersigned, a
Notary Public, personally appeared COURTNEY CLARKE and REBECCA D.
SCHUETT, to me personally known, who, being by me duly sworn, did state that they are
the Mayor and City Clerk, respectively, of the City of Waukee, Iowa; that the seal affixed
to the foregoing instrument is the seal of the corporation, and that the instrument was signed
and sealed on behalf of the corporation, by authority of its City Council, as Roll Call No.
___________ on the _____ day of ________________, 2025, and that Courtney Clarke
and Rebecca D. Schuett acknowledged the execution of the instrument to be the voluntary
act and deed of the municipal corporation, by it voluntarily executed.
___________________________________
Notary Public for the State of Iowa