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12 15 08 City Council Proceedings Official CITY OF DUBUQUE, IOWA CITY COUNCIL PROCEEDINGS OFFICIAL The Dubuque City Council met in regular session at 6:30 p.m. on December 15, 2008 in the Historic Federal Building. Present: Mayor Buol, Council Members Braig, Connors, Jones, Lynch, Resnick, Voetberg, City Manager Van Milligen, City Attorney Lindahl Mayor Buol read the call and stated this is a regular session called for the purpose of discussing such matters which may properly come before the City Council. Invocation was provided by Father John Haugen of Loras College CONSENT ITEMS Motion by Lynch to receive and file the documents, adopt the resolutions, and dispose of as indicated. Seconded by Voetberg. Motion carried 7-0. Minutes and Reports Submitted: Cable TV Regulatory Commission of 11/12; Cable TV Teleprogramming Commission of 11/12; City Council of 12/1; Civil Service Commission of 11/17 and 11/25; Electrical Code Board of 12/1; Environmental Stewardship Advisory Commission of 12/2; Human Rights Commission of 11/10; Zoning Advisory Commission of 11/5; Zoning Board of Adjustment of 11/20 Library Board of Trustees Update from meeting of November 20, 2008 Proofs of publication of City Council Proceedings of November 17, 2008 (Special Session and Regular Session) and November 21, 2008 and List of Claims and Summary of Revenues for the month ended October 31, 2008 Printed Official Proceedings of the City Council for 2007 Upon motion the documents were received and filed. Claims/Suits: City Attorney advising that the following claims have been referred to Public Entity Risk Services of Iowa, the agent for the Iowa Communities Assurance Pool: Grand Opera House for property damage and Amanda Reynolds for vehicle damage. City Attorney recommending settlement of the claim of Irene Holz for property damage. Upon motion the documents were received and filed and concurred. Civil Service Commission: Civil Service Commission submitting the certified lists for the positions of Foreman and Park Ranger. Upon motion the documents were received and filed and made a Matter of Record. Five Flags Sidewalk Replacement Project: City Manager recommending acceptance of the Five Flags Sidewalk and Lighting Replacement Project as completed by Portzen Construction, Inc., in the final contract amount of $232,158.83. Upon motion the documents were received and filed and Resolution No. 423-08 Accepting the Five Flags Sidewalk and Lighting Replacement Project and authorizing payment of the contract amount to the contractor was adopted. RESOLUTION NO. 423-08 ACCEPTING THE FIVE FLAGS SIDEWALK AND LIGHTING REPLACEMENT PROJECT AND AUTHORIZING THE PAYMENT OF THE CONTRACT AMOUNT TO THE CONTRACTOR Whereas, the Public Improvement Contract for the Five Flags Sidewalk and Lighting Replacement Project (the Project) has been completed and the City Engineer has examined the work and filed a certificate stating that the Project has been completed according to the terms of the Public Improvement Contract and that the City Engineer recommends that the Project be accepted; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The recommendation of the City Engineer is approved and the Project is hereby accepted. Section 2. The Finance Director is hereby directed to pay to the Contractor from the Five Flags Sidewalk Replacement Fund, Main Street Historic Lights Fund, Downtown Street Light Replacement Fund, Traffic Signal Intersection Reconstruction Fund, Fiber Optic Conduit- Private Sub & Misc. Projects Fund, FY 2008 Street Construction Program Fund and Storm Sewer Improvements Fund appropriation for the contract amount of $232,158.83 less any retained percentage provided for therein as provided in Iowa Code chapter 573, and to pay such retainage only in accordance with the provisions of Iowa Code chapter 573. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk CITY ENGINEER’S CERTIFICATE OF FINAL COMPLETION OF THE FIVE FLAGS SIDEWALK AND LIGHTING REPLACEMENT PROJECT The undersigned City Engineer of the City of Dubuque, Iowa, hereby certifies that he has inspected the Five Flags Sidewalk and Lighting Replacement Project, that the Project has been performed in compliance with the terms of the Public Improvement Contract, and that the total cost of the completed work is $248,746.83. th Dated this 15 day of December, 2008. Gus Psihoyos, City Engineer th Filed in the office of the City Clerk on the 15 day of December, 2008. Jeanne F. Schneider, CMC, City Clerk Fire Station No. 2, John F. Kennedy Road Parking Lot Reconstruction Project: City Manager recommending acceptance of the Fire Station No. 2, John F. Kennedy Road Parking Lot Reconstruction Project as completed by Portzen Construction, Inc., in the final contract amount of $73,470.34. Upon motion the documents were received and filed and Resolution No. 424-08 Accepting the Fire Station No. 2 – John F. Kennedy Road Parking Lot Reconstruction Project and authorizing payment of the contact amount to the contractor was adopted. RESOLUTION NO. 424-08 ACCEPTING THE FIRE STATION NO. 2 – JOHN F. KENNEDY ROAD PARKING LOT RECONSTRUCTION PROJECT AND AUTHORIZING THE PAYMENT OF THE CONTRACT AMOUNT TO THE CONTRACTOR Whereas, the Public Improvement Contract for the Fire Station No. 2 – John F. Kennedy Road Parking Lot Reconstruction Project (the Project) has been completed and the City Engineer has examined the work and filed a certificate stating that the Project has been completed according to the terms of the Public Improvement Contract and that the City 2 Engineer recommends that the Project be accepted; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The recommendation of the City Engineer is approved and the Project is hereby accepted. Section 2. The Finance Director is hereby directed to pay to the Contractor from the Fire Station No. 2 – JFK Parking Lot Reconstruction CIP (1012055) appropriation for the contract amount of $73,470.34 less any retained percentage provided for therein as provided in Iowa Code chapter 573, and to pay such retainage only in accordance with the provisions of Iowa Code chapter 573. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk CITY ENGINEER’S CERTIFICATE OF FINAL COMPLETION OF THE FIRE STATION NO. 2 – JOHN F. KENNEDY ROAD PARKING LOT RECONSTRUCTION PROJECT The undersigned City Engineer of the City of Dubuque, Iowa, hereby certifies that he has inspected the Fire Station No. 2 – John F. Kennedy Road Parking Lot Reconstruction Project, that the Project has been performed in compliance with the terms of the Public Improvement Contract, and that the total cost of the completed work is $81,252.09. th Dated this 15 day of December, 2008. Gus Psihoyos, City Engineer th Filed in the office of the City Clerk on the 15 day of December, 2008. Jeanne F. Schneider, CMC, City Clerk Timber-Hyrst Estates, Phase I – Acceptance: City Manager recommending acceptance of the public improvements which the developer, North Cascade Road Developers, LLC (NCR Developers), has recently completed in Timber-Hyrst Estates. Upon motion the documents were received and filed and Resolution No. 425-08 Accepting public improvements in Timber- Hyrst Estates was adopted. RESOLUTION NO. 425-08 ACCEPTING PUBLIC IMPROVEMENTS IN TIMBER-HYRST ESTATES Whereas, pursuant to Resolution 167-06, certain public improvements including street paving with curb and gutter, sanitary sewer, watermain, storm sewer, catch basins, and street lighting were installed by the developer of the Timber-Hyrst Estates. Whereas, the improvements have been completed and the City Manager has examined the work and has filed a certificate stating that the same has been completed in accordance with the plans approved by the City Council and in conformance with City specifications, and has recommended that the improvements be accepted by the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the recommendation of the City Manager be approved and that said public improvements in the Timber-Hyrst Estates be and the same is hereby accepted. Section 2. That maintenance of said public improvements shall be the responsibility of the owner for a period of two (2) years from the date of this resolution. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk 3 Stone Brook Center Second Addition – Acceptance: City Manager recommending acceptance of the public improvements which the developer, NEZTROP, LLC has recently completed in Stone Brook Center Second Addition. Upon motion the documents were received and filed and Resolution No. 426-08 Accepting public improvements in Stone Brook Center Second Addition was adopted. RESOLUTION NO. 426-08 ACCEPTING PUBLIC IMPROVEMENTS IN STONE BROOK CENTER SECOND ADDITION Whereas, pursuant to Resolution 61-04, certain public improvements including street paving with curb and gutter, sanitary sewer, watermain, storm sewer, catch basins, boulevard street lighting, and a stormwater detention facility were installed by the developer of the Stone Brook Center Second Addition. Whereas, the improvements have been completed and the City Manager has examined the work and has filed a certificate stating that the same has been substantially completed in accordance with the plans approved by the City Council and in conformance with City specifications, and has recommended that the improvements be accepted by the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the recommendation of the City Manager be approved and that said public improvements, except the stormwater detention facilities, in the Stone Brook Center Second Addition be and the same is hereby accepted. Section 2. That maintenance of said public improvements shall be the responsibility of the owner for a period of two (2) years from the date of this resolution. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk Eagle Valley Subdivision – Acceptance: City Manager recommending acceptance of the public improvements that the developer, Fondell Excavating, Inc., has recently completed in Eagle Valley Subdivision in the City of Dubuque, Iowa. Upon motion the documents were received and filed and Resolution No.427-08 Accepting Public Improvements in Eagle Valley Subdivision was adopted. RESOLUTION NO. 427-08 ACCEPTING IMPROVEMENTS IN EAGLE VALLEY SUBDIVISION IN THE CITY OF DUBUQUE, IOWA Whereas, pursuant to 434-05, 479-04. and 293-03, certain public improvements including street paving with curb, sanitary sewer main, watermain, storm sewer and catch basins, boulevard street lighting, and stormwater detention facilities were installed by the developer of Eagle Valley Subdivision in the City of Dubuque, Iowa; and Whereas, the improvements have been completed and the City Manager has examined the work and has filed a certificate stating that the same has been completed in accordance with the plans approved by the City Council and in conformance with City specifications, and has recommended that the improvements be accepted by the City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: 4 Section 1. That the recommendation of the City Manager be approved and that said public improvements, except the stormwater detention facilities, in Eagle Valley Subdivision in the City of Dubuque, Iowa, be and the same is hereby accepted. Section 2. That maintenance of said improvements shall be the responsibility of Fondell Excavating, Inc., Morse Electric, Inc. and River City Paving, A Division of Mathy Construction Co., for a period of two (2) years from the date of this resolution. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk 2008 Weed Assessments: City Manager recommending approval of the levy of special assessments for the second half of the 2008 Weed Enforcement Program in the total amount of $1,810. Upon motion the documents were received and filed and Resolution No. 428-08 Adopting the schedule of assessments for the second half of the 2008 Weed/Garbage/Junk Enforcement Program specifying the number of annual installments into which assessments are divided, the interest on all unpaid installments, the time when the assessments are payable and directing the clerk to certify the schedule of assessments to the County Treasurer and to publish notice thereof was adopted. RESOLUTION NO. 428-08 ADOPTING THE SCHEDULE OF ASSESSMENTS FOR THE SECOND HALF OF THE 2008 WEED/GARBAGE/JUNK ENFORCEMENT PROGRAM SPECIFYING THE NUMBER OF ANNUAL INSTALLMENTS INTO WHICH ASSESSMENTS ARE DIVIDED, THE INTEREST ON ALL UNPAID INSTALLMENTS, THE TIME WHEN THE ASSESSMENTS ARE PAYABLE AND DIRECTING THE CLERK TO CERTIFY THE SCHEDULE OF ASSESSMENTS TO THE COUNTY TREASURER AND TO PUBLISH NOTICE THEREOF NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: That after full consideration of the Schedule of Assessments for the Second Half of the 2008 Weed/Garbage/Junk Enforcement Program which Schedule of Assessments was filed in the th office of the City Clerk on the 9 day of December, 2008, the said Schedule of Assessments be and the same is hereby approved and adopted. That there be, and is herby assessed and levied as a special tax against and upon each of the lots, the respective sums indicated. That the City Clerk be and is hereby directed to certify said schedule to the County Treasurer of Dubuque County, Iowa, and to publish notice of said certification once each week for two consecutive weeks in the manner provided in Iowa Code § 362.3, the first publication of which shall be not more than fifteen days from the date of filing of the final schedule. On or before the date of the second publication of the notice, the City Clerk shall also mail a copy of said notice to property owners whose property is subject to assessment, as provided and directed in Iowa Code § 384.60. The assessments may be paid in full or in part without interest at the office of the City th Treasurer, City Hall, 50 W. 13 Street, Dubuque, Iowa, at any time within 30 days after the date of the first publication of the notice of the filing of the Schedule of Assessments with the County Treasurer. After 30 days, unpaid assessments of $100.00 or more are payable in 10 annual installments at the County Treasurer’s Office, Dubuque County Courthouse, 720 Central Avenue, Dubuque, Iowa, and will draw annual interest at nine (9) percent (commencing on the date of acceptance of the work) computed to December 1 next following the due dates of the respective installments as provided in Section 384.65 of the Code of Iowa. 5 Each installment will be delinquent from October 1 following its due date on July 1 of each year. Property owners may elect to pay any annual installments semiannually in advance. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk Neighborhood Stabilization Program Funds: City Manager recommending approval of an application to the Iowa Department of Economic Development (IDED) for Neighborhood Stabilization Program funds. Upon motion the documents were received and filed and Resolution No. 429-08 Authorizing submission of an application to the Iowa Department of Economic Development (IDED) for Neighborhood Stabilization Program Funds was adopted. RESOLUTION NO. 429-08 RESOLUTION AUTHORIZING SUBMISSION OF AN APPLICATION TO THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT (IDED) FOR NEIGHBORHOOD STABILIZATION PROGRAM FUNDS Whereas, the US Department of Housing and Urban Development (HUD) has made available funding to state and local governments to respond to the increased number of foreclosures, by passage of the Housing and Economic Recovery Act of 2008; and Whereas, IDED has allocated $459 406 of these Neighborhood Stabilization Program funds to Dubuque, to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight; and Whereas, IDED requires submission of an application for approval of this allocation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That an application to IDED for these funds is hereby approved. Section 2. That the City Manager is hereby directed to sign this application and resulting standard contract. th Passed, approved and adopted this 15 day of December 2008. Roy D Buol, Mayor Attest: Jeanne F Schneider, CMC, City Clerk Purchase of Property – 2273 / 2301 Prince Street: City Manager recommending approval of the purchase of a residential rental dwelling located at 2273 / 2301 Prince Street as part of the acquisition program associated with the Bee Branch Creek Restoration Project. Upon motion the documents were received and filed and Resolution No. 430-08 Approving the acquisition of real estate located at 2273 / 2301 Prince Street in the City of Dubuque, Iowa, was adopted. RESOLUTION NO. 430-08 A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE LOCATED AT 2273- 2301 PRINCE STREET, IN THE CITY OF DUBUQUE WHEREAS, the City of Dubuque intends to acquire certain properties located in the area of the Bee Branch Creek Restoration Project for stormwater mitigation activities as recommended in the 2001 HDR “Drainage Basin Master Plan;” and WHEREAS, a purchase agreement has been finalized with the owner of the fifty eighth property scheduled for acquisition. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby approves the acquisition of the following legally 6 described property: Lot 56 in Sanford Subdivision in the City of Dubuque, Iowa, according to the recorded Plat thereof At the cost of One Hundred Nineteen thousand dollars ($119,000). Section 2. That the City of Dubuque be and is hereby authorized to accept a Quit Claim deed from the owner, conveying the owner’s interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Clerk be and she is hereby authorized and directed to cause said Quit Claim Deed to be recorded in the office of the Dubuque County Recorder, together with certified copy of the Resolution. Section 4. That the City Clerk be and she is hereby directed to forward a copy of this Resolution to the Dubuque County Assessor and the Dubuque County Auditor. th Passed, approved and adopted this15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne Schneider, CMC, City Clerk Purchase of Property – 1575 Maple Street: City Manager recommending approval of the purchase of a residential dwelling located at 1575 Maple Street as part of the acquisition program associated with the Bee Branch Creek Restoration Project. Upon motion the documents were received and filed and Resolution No. 431-08 Approving the acquisition of real estate located at 1575 Maple Street in the City of Dubuque, Iowa, was adopted. RESOLUTION NO. 431-08 A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE LOCATED AT 1575 MAPLE STREET, IN THE CITY OF DUBUQUE WHEREAS, the City of Dubuque intends to acquire certain properties located in the area of the Bee Branch Creek Restoration Project for stormwater mitigation activities as recommended in the 2001 HDR “Drainage Basin Master Plan;” and WHEREAS, a purchase agreement has been finalized with the owner of the fifty ninth property scheduled for acquisition. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby approves the acquisition of the following legally described property: Lot 290 in East Dubuque Addition No. 2 in the City of Dubuque, Iowa, according to the recorded plat thereof. At the cost of Seventy thousand dollars ($70,000). Section 2. That the City of Dubuque be and is hereby authorized to accept a Quit Claim deed from the owner, conveying the owner’s interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Clerk be and she is hereby authorized and directed to cause said Quit Claim Deed to be recorded in the office of the Dubuque County Recorder, together with certified copy of the Resolution. Section 4. That the City Clerk be and she is hereby directed to forward a copy of this Resolution to the Dubuque County Assessor and the Dubuque County Auditor. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne Schneider, CMC, City Clerk 7 Purchase of Property – 510-512 Rhomberg Avenue: City Manager recommending approval of the purchase of a rental dwelling located at 510 - 512 Rhomberg Avenue as part of the acquisition program associated with the Bee Branch Creek Restoration Project. Upon motion the documents were received and filed and Resolution No. 432-08 Rescinding Resolution No. 142-08 which contained an incorrect legal description and approving this resolution for the acquisition of real estate located at 510, 510½, and 512 Rhomberg Avenue, in the City of Dubuque, Iowa, was adopted. RESOLUTION NO. 432-08 RESOLUTION RESCINDING RESOLUTION NO. 142-08 WHICH CONTAINED AN INCORRECT LEGAL DESCRIPTION AND APPROVING THIS RESOLUTION FOR THE ACQUISITION OF REAL ESTATE LOCATED AT 510, 510½, 512 RHOMBERG AVENUE, IN THE CITY OF DUBUQUE WHEREAS, the City of Dubuque intends to acquire certain properties located in the area of the Bee Branch Creek Restoration Project for stormwater mitigation activities as recommended in the 2001 HDR “Drainage Basin Master Plan;” and WHEREAS, a purchase agreement has been finalized with the owner of the thirty-ninth th (39) property scheduled for acquisition. WHEREAS, Resolution No. 142-08 approving the acquisition of real estate located at 510, 510½, 512 Rhomberg Avenue, in the City of Dubuque contained an incorrect legal description. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby rescinds Resolution No. 142-08 and approves this new Resolution for the acquisition of real estate located at 510, 510½, 512 Rhomberg Avenue, in the City of Dubuque for the following legally described property: Lot 1 of the Subdivision of Lot 33 of High Street Subdivision; and Lots 16 and 16A of Smedley’s Subdivision; in the City of Dubuque, Iowa, according to the recorded plat thereof. At the cost of Eighty-five thousand dollars ($85,000). Section 2. That the City of Dubuque be and is hereby authorized to accept a Quit Claim deed from the owner, conveying the owner’s interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Clerk be and she is hereby authorized and directed to cause said Quit Claim Deed to be recorded in the office of the Dubuque County Recorder, together with certified copy of the Resolution. Section 4. That the City Clerk be and she is hereby directed to forward a copy of this Resolution to the Dubuque County Assessor and the Dubuque County Auditor. Section 5. This Ordinance shall take effect upon publication. Passed, approved and adopted this 15th day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne Schneider, CMC, City Clerk Purchase of Property – 2290 Washington Street: City Manager recommending approval of the purchase of a residential dwelling located at 2290 Washington Street as part of the acquisition program associated with the Bee Branch Creek Restoration Project. Upon motion the documents were received and filed and Resolution No. 433-08 Approving the acquisition of real estate located at 2290 Washington Street in the City of Dubuque, Iowa, was adopted. RESOLUTION NO. 433-08 8 A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE LOCATED AT 2290 WASHINGTON STREET, IN THE CITY OF DUBUQUE WHEREAS, the City of Dubuque intends to acquire certain properties located in the area of the Bee Branch Creek Restoration Project for stormwater mitigation activities as recommended in the 2001 HDR “Drainage Basin Master Plan;” and WHEREAS, a purchase agreement has been finalized with the owner of the sixtieth property scheduled for acquisition. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby approves the acquisition of the following legally described property: Lot 1 of the Subdivision of the South 45 feet of Lot 104 in L.H. Langworthy’s Addition in the City of Dubuque, Iowa, according to the recorded Plat thereof Subject to easements, restrictions, covenants, ordinances and limited access provisions of record. At the cost of Eighty-five thousand dollars ($85,000). Section 2. That the City of Dubuque be and is hereby authorized to accept a Quit Claim deed from the owner, conveying the owner’s interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Clerk be and she is hereby authorized and directed to cause said Quit Claim Deed to be recorded in the office of the Dubuque County Recorder, together with certified copy of the Resolution. Section 4. That the City Clerk be and she is hereby directed to forward a copy of this Resolution to the Dubuque County Assessor and the Dubuque County Auditor. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne Schneider, CMC, City Clerk Administrative Services Fee Renewal – Flexible Spending Plan: City Manager recommending approval of the renewal rates from Total Administrative Services Corporation (TASC) for administration of the City’s flexible spending plan. Upon motion the documents were received, filed, and approved. Human Rights Commission Annual Report: Human Rights Commission submitting the Annual Report for Fiscal Year 2008. Upon motion the document was received and filed. Alcohol Compliance – Civil Penalties for Alcohol License Holders: City Manager recommending approval of the Acknowledgement/Settlement Agreements for a first offense alcohol compliance violation for El Paisano Grocery Store and Isabella’s at the Ryan House. Upon motion the documents were received, filed, and approved. Citizen Communication: Communication from Jim and Anita Sullivan regarding the West nd 32 Street Detention Basin. Upon motion the documents were received and filed and referred to the City Manager. Amendment to B & G Consulting, LLC Agreement: City Manager recommending approval of an amendment to the consulting agreement with B & G Development, LLC for identifying and marketing City parcels or facilities to New Market Tax Credit Community Development Entities. Upon motion the documents were received, filed, and approved. 9 WS Live – Community Development Block Grant (CDBG) Loan Agreement: City Manager recommending approval of a $375,000 forgivable loan request from WS Live, LLC for funding through the City’s Community Development Block Grant (CDBG) Economic Development Loan th Program to assist in the company’s relocation to 131 W. 10 Street. Upon motion the documents were received and filed and Resolution No. 434-08 Authorizing a commitment letter and the execution of a Community Development Block Grant Loan of Three Hundred Seventy- Five Thousand Dollars ($375,000) to WS Live, LLC, was adopted. RESOLUTION NO. 434-08 A RESOLUTION AUTHORIZING A COMMITMENT LETTER AND THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT LOAN OF THREE HUNDRED SEVENTY- FIVE THOUSAND DOLLARS ($375,000) TO WS LIVE, LLC. Whereas, under provisions of Title I of the Housing and Community Development Act of 1974, as amended, the City of Dubuque has received Community Development Block Grant Funds for the purpose of stimulating economic development activities within the community; and Whereas, the City of Dubuque, Iowa desires to assist WS Live, LLC and to create new permanent employment opportunities for low and moderate income citizens. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the attached CDBG loan agreement is hereby approved. Section 2. That the City Manager is hereby authorized to execute, on behalf of the City Council of the City of Dubuque, Iowa, all necessary loan documents and is further authorized to disburse loan funds from the CDBG Economic Development Loan Program, in accordance with the terms and conditions of the executed agreement. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk Interstate Building, LLLP and WS Live, LLC – First Amendment to Development Agreement: City Manager recommending approval of the First Amendment to the Development Agreement with Interstate Building, LLLP and WS Live, LLC to reflect changes in employment numbers and that WS Live must be completely out of their current facility by January 15, 2009. Upon motion the documents were received and filed and Resolution No. 435-08 Approving the first amendment to the Interstate Building, LLLP and WS Live, LLC Development Agreement was adopted. RESOLUTION NO. 435-08 RESOLUTION APPROVING THE FIRST AMENDMENT TO THE INTERSTATE BUILDING, LLLP AND WS LIVE, LLC DEVELOPMENT AGREEMENT Whereas, a Development Agreement (the Agreement), dated November 3, 2008, was entered into by and between the City of Dubuque, a municipal corporation of the State of Iowa (City), and Interstate Building, LLLP and WS Live, LLC; and Whereas, City and Interstate Building, LLLP and WS Live, LLC now desire to amend the Development Agreement as set forth attached First Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the First Amendment of the Interstate Building, LLLP and WS Live, LLC 10 Development Agreement is hereby approved. Section 2. That the Mayor is hereby authorized and directed to execute said First Amendment on behalf of the City of Dubuque and the City Clerk is authorized and directed to attest to his signature. Section 3. That the City Manager is authorized to take such actions as are necessary to implement the terms of the First Amendment as herein approved. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk West Side Annexation: Joint Motion: City Manager transmitting a letter from Asbury City Administrator Beth Bonz and the joint motion by Dubuque and Asbury supporting the voluntary annexation of Sandwedge Subdivision to the City of Asbury. Upon motion the documents were received and filed. Dubuque Main Street, Ltd Program Agreement: City Manager recommending approval of a Program Agreement between Dubuque Main Street, Ltd., the City of Dubuque and the Iowa Department of Economic Development. Upon motion the documents were received and filed and Resolution No. 436-08 Resolution of Support and financial commitment for the Main Street Program in Dubuque, Iowa, was adopted. RESOLUTION NO. 436-08 RESOLUTION OF SUPPORT AND FINANCIAL COMMITMENT FOR THE MAIN STREET PROGRAM IN DUBUQUE WHEREAS, an Agreement between the Iowa Department of Economic Development, Dubuque Main Street, Ltd. and the City of Dubuque for the purpose of continuing the Main Street Iowa program in Dubuque; and WHEREAS, this Agreement is pursuant to contractual agreements between the National Trust for Historic Preservation and the Iowa Department of Economic Development to assist in the revitalization of the designated Main Street project area of Dubuque Iowa; and WHEREAS, the City Council of Dubuque endorses the goal of economic revitalization of the Downtown within the context of preservation and rehabilitation of its historic buildings and supports the continuation of the Main Street Four Point Approach as developed by the National Trust for Historic Preservation and espoused by Main Street Iowa. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Dubuque, Iowa, meeting in regular session on December 15, 2008, that the City of Dubuque hereby agrees to support both financially and philosophically the work of Dubuque Main Street, Ltd. and designates the Main Street Board to supervise the Program Director. th Passed, approved and adopted this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk nd SRF Loan Agreement – West 32 Street Detention Basin: City Manager recommending approval of the suggested proceedings to complete the action required on the issuance of $2,000,000 Sewer Capital Loan Notes (State of Iowa Revolving Fund Loan). Upon motion the documents were received and filed and Resolution No. 437-08 Relating to the issuance of Sewer Revenue Bonds by the City of Dubuque under the provisions of Chapter 384 of the Code of Iowa, authorizing and providing for the issuance and securing the payment of $2,000,000 Sewer Revenue Capital Loan Notes, Series 2009A, and providing for a method of 11 payment thereof and related matters, was adopted. RESOLUTION 437-08 MASTER RESOLUTION RELATING TO THE ISSUANCE OF SEWER REVENUE BONDS BY THE CITY OF DUBUQUE UNDER THE PROVISIONS OF CHAPTER 384 OF THE CODE OF IOWA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SECURING THE PAYMENT OF $2,000,000 SEWER REVENUE CAPITAL LOAN NOTES, SERIES 2009A, AND PROVIDING FOR A METHOD OF PAYMENT THEREOF, AND RELATED MATTERS WHEREAS, the City Council of the City of Dubuque, Iowa (the "City") has heretofore established charges, rates and rentals for services which are and will continue to be collected as system revenues of the Municipal Sewer Utility System; and WHEREAS, the City of Dubuque proposes to issue the sewer revenue capital loan notes hereinafter described to pay costs of acquisition, construction, reconstruction, extending, remodeling, improving, repairing and equipping all or part of the Municipal Sewer System, including those costs associated with construction of the West 32nd Street Detention Basin Project; and WHEREAS, the notice of intention of the Issuer to take action for the issuance of not to exceed $2,458,000 Sewer Revenue Capital Loan Notes for the foregoing purposes has heretofore been duly published and no objections to such proposed action have been filed; and WHEREAS, the Iowa Finance Authority has agreed to purchase said Notes, under the Iowa Water Pollution Control Works Financing Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, AS FOLLOWS: ARTICLE I DEFINITIONS Section 1.1. Definitions . The following terms shall have the following meanings in this Resolution unless the text expressly or by necessary implication requires otherwise: "Agreement" shall mean a Loan and Disbursement Agreement dated as of the Closing between the City and the Original Purchaser relating to the Loan made to the City under the SRF Program. "Authorized Denominations" shall mean $5,000 or any integral multiple thereof. "Beneficial Owner" shall mean the person in whose name such Bond is recorded as the beneficial owner of a Bond by a Participant on the records of such Participant or such person's subrogee. “Bond Principal and Interest Fund” means the fund by that name established in Section 6.5 of this Resolution. “Bond Register” means the books maintained by the Registrar for the registration, transfer and exchange of Bonds. "Bondholder" means the registered owner of one or more Bonds. "Bonds" means any sewer revenue bonds, notes or other obligations authorized by and authenticated and delivered pursuant to this Resolution and any Series Resolution, including the Series 2009A Bonds, any other Senior Bonds, and any Subordinate Bonds. “City Clerk” means the individual presently serving as the City Clerk of the Issuer, and any successor who may hereafter serve as such officer or be charged with substantially the same duties and responsibilities. "Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations of the Treasury Department proposed or promulgated thereunder. 12 "Costs of Issuance" means issuance costs with respect to any series of Bonds, including but not limited to the following: underwriters' spread (whether realized directly or derived through purchase of such Bonds at a discount below the price at which they are expected to be sold to the public); Credit Facility fees; trustee’s fees; counsel fees (including bond counsel, underwriter's counsel, and any other specialized counsel fees incurred in connection with the borrowing); fees of any Financial Advisor to the Issuer incurred in connection with the issuance of the Bonds; Rating Agency fees; escrow agent and paying agent fees; accountant fees and other expenses related to issuance of the Bonds; printing costs (for the Bonds and of the preliminary and final official statement relating to the Bonds); and other fees and expenses of the Issuer incurred in connection with the issuance of the Bonds. "Credit Facility" means any letter of credit, insurance policy, guaranty, surety bond, standby bond purchase agreement, line of credit, revolving credit agreement, or similar obligation, arrangement, or instrument issued by a bank, insurance company, or other financial institution which is used by the Issuer to perform one or more of the following tasks: (i) enhancing the Issuer's credit by assuring owners of any of the Bonds that Principal of and interest on such Bonds will be paid promptly when due; (ii) providing liquidity for the owners of Bonds through undertaking to cause Bonds to be bought from the owners thereof when submitted pursuant to an arrangement prescribed by the Series Resolution relating to such Bonds; or (iii) remarketing any Bonds so submitted to the Issuer or Credit Facility Provider for purchase (whether or not the same Credit Facility Provider is remarketing the Bonds). "Credit Facility Agreement" means an agreement between the Issuer and a Credit Facility Provider pursuant to which the Credit Facility Provider issues a Credit Facility and may include the promissory note or other instrument evidencing the Issuer's obligations to a Credit Facility Provider pursuant to a Credit Facility Agreement. "Credit Facility Provider" means any issuer of a Credit Facility then in effect for all or part of the Bonds. Whenever in a Series Resolution the consent of the Credit Facility Provider is required, such consent shall only be required from the Credit Facility Provider whose Credit Facility is issued with respect to the series of Bonds for which the consent is required. Debt Service Requirement" shall mean the total Principal and interest coming due on Senior Bonds, or all Bonds, as applicable, whether at maturity, on any Interest Payment Date, or upon mandatory sinking fund redemption in any specified period; provided, however, that the Debt Service Requirement with respect to any Bonds shall mean the net amount of principal and interest coming due on such Bonds after taking into account any so-called “subsidy” (i.e., the amount of anticipated investment earnings which will accrue on any reserve account relating to the Bonds and which will reduce the debt service payments of the Issuer with respect to such Bonds). In addition: (a) With respect to any Bonds secured by a Credit Facility, Debt Service Requirement shall include (i) any upfront or periodic commission or commitment fee obligations with respect to such Credit Facility, (ii) the outstanding amount of any Reimbursement Obligation owed to the applicable Credit Facility Provider and interest thereon, and (iii) any remarketing agent fees. (b) The Principal of and interest on Bonds shall be excluded from the determination of Debt Service Requirement to the extent that (1) the same were or are expected to be paid with amounts on deposit on the date of calculation (or Bond proceeds to be deposited on the date of issuance of proposed Bonds) in the Project Fund, the Debt Service Reserve Fund or a similar fund for 13 Subordinate Bonds or (2) cash or non-callable Government Obligations are on deposit in an irrevocable escrow or trust account in accordance with Section 9.1 hereof (or a similar escrow or trust account for Subordinate Bonds) and such amounts (including, where appropriate, the earnings or other increment to accrue thereon) are required to be applied to pay Principal or interest and are sufficient to pay such Principal or interest. “Debt Service Reserve Fund” means the fund by that name established in Section 6.6 of this Resolution. "Debt Service Reserve Requirement" means the amount determined to be a reasonable reserve for the payment of Principal of and interest on Senior Bonds (other than Senior SRF Bonds), which amount shall be the least of (a) 10% of the stated Principal amount of the Senior Bonds (other than Senior SRF Bonds), (b) the maximum annual Principal and interest requirements on the Senior Bonds (other than Senior SRF Bonds) (determined as of the issue date of each series of such Senior Bonds), or (c) 125% of the average annual Principal and interest requirements on the Senior Bonds (other than Senior SRF Bonds) (determined as of the issue date of each series of such Senior Bonds). If the aggregate initial offering price of a series of Bonds to the public is less than 98% or more than 102% of par, such offering price shall be used in lieu of the stated Principal amount. Notwithstanding the foregoing, the Debt Service Reserve Requirement, if any, in connection with any Senior SRF Bonds or any Subordinate Bonds shall be as provided in the Series Resolution authorizing the issuance of such Senior SRF Bonds or such Subordinate Bonds. "Depository Bonds" shall mean the Bonds as issued in the form of one global certificate for each maturity, registered in the Bond Register maintained by the Registrar in the name of DTC or its nominee. "DTC" shall mean The Depository Trust Company, New York, New York, a limited purpose trust company, or any successor book-entry securities depository appointed for the Bonds. “Financial Advisor” means a financial advisory firm appointed by the Governing Body for the purpose of assisting the Issuer with the structuring and offering of Bonds, SRF Bonds, Subordinate Bonds or other obligations. "Fiscal Year" shall mean the twelve-month period beginning on July l of each year and ending on the last day of June of the following year, or any other consecutive twelve-month period adopted by the Governing Body or by law as the official accounting period of the System. Requirements of a Fiscal Year as expressed in this Resolution shall exclude any payment of principal or interest falling due on the first day of the Fiscal Year and include any payment of principal or interest falling due on the first day of the succeeding Fiscal Year. "Governing Body" shall mean the City Council of the Issuer, or its successor in function with respect to the operation and control of the System. "Government Obligations" means (a) direct obligations of the United States of America for the full and timely payment of which the full faith and credit of the United States of America is pledged or (b) obligations issued by an agency controlled or supervised by and acting as an instrumentality of the United States of America, the full and timely payment of the principal of and the interest on which is fully and unconditionally guaranteed as a full faith and credit obligation of the United States of America (including any securities described in (a) or (b) issued or held in book-entry form on the books of the Department of the Treasury of the United States of America), which obligations, in either case, (i) are not subject to redemption or prepayment prior to 14 maturity except at the option of the holder of such obligations and (ii) may include U.S. Treasury Trust Receipts. "Gross Revenues" shall mean all rents, profits, fees, charges and income derived directly from the operation of the System, including Investment Earnings. "Independent Auditor" shall mean an independent firm of certified public accountants or the Auditor of the State of Iowa. "Interest Payment Date" means each date on which interest is to become due on any Bonds, as established in the Series Resolution for such Bonds, and with respect to the Series 2009A Bonds, shall be as specified in Section 2.2 hereof. "Investment Earnings" means all interest received on and profits derived from investments of moneys in all funds and accounts of the Issuer established hereunder, other than investments derived from or with respect to (i) all funds and accounts established in connection with SRF Bonds and (ii) those funds or accounts established within or as part of the Project Fund or the Rebate Fund. "Issuer" shall mean the City of Dubuque, Iowa. "Loan" shall mean the principal amount allocated by the Original Purchaser to the City under the SRF Program in respect of the Series 2009A Project, equal in amount to the principal amount of the Series 2009A Bonds. "Maximum Annual Debt Service Requirement" means the maximum amount of Debt Service Requirements as computed for the then current or any future Fiscal Year. "Net Revenues" shall mean Gross Revenues of the System after provision for payment of all Operation and Maintenance Expenses. "Operation and Maintenance Expenses" shall mean the reasonable necessary current expenses paid or accrued in operating and maintaining the System as determined in accordance with generally accepted accounting principles, including but not limited to (a) costs, including a reserve for bad debts of collecting Gross Revenues and making refunds; (b) engineering, audit reports, legal and administrative expenses; (c) salaries, wages, benefits and other compensation; (d) costs of routine repairs, replacements and renewals; (e) costs of utility services; (f) general administrative overhead, marketing or advertising; (g) losses from the sale, abandonment, reclassification or other disposition of any property of the System; (h) material and supplies used in the ordinary course of business; (i) contractual and professional services; (j) costs of insurance and fidelity bonds; (k) costs of carrying out provisions of the Resolution; (l) expenditures which do not exceed the standards for capitalization under the Issuer's accounting basis; and (m) all other routine costs and expenses. The term "Operation and Maintenance Expense" shall not include any allowance for depreciation or amortization, any debt service or the costs associated with early extinguishment of debt, nor any other accounting charges which are not payable from Gross Revenues. “Operation and Maintenance Fund” means the fund by that name established in Section 6.4 of this Resolution. "Original Purchaser" shall mean the Iowa Finance Authority, as purchaser of the Series 2009A Bonds from the Issuer at the time of their original issuance. "Outstanding" shall mean, as of a particular date, all such Bonds theretofore and thereupon delivered except: (a) any such Bond cancelled by or on behalf of the Issuer on or before said date; (b) any such Bond defeased pursuant to Section 9.1 of this Resolution or of the Series Resolution authorizing its issuance, or otherwise defeased as permitted by applicable law; and (c) any such Bond in lieu of or in substitution for which another bond shall have been delivered pursuant to the Series Resolution authorizing 15 the issuance of such Bond. "Outstanding Interim Loan" shall mean the $253,850 Sewer Revenue Capital Loan Note Anticipation Project Note, Series 2006, dated December 28, 2006. The Outstanding Interim Loan shall be deemed to be a Subordinate SRF Bond under this Resolution. "Participants" shall mean those broker-dealers, banks and other financial institutions for which DTC holds Bonds as securities depository. "Paying Agent" shall mean Wells Fargo Bank, National Association, or such successor as may be approved by the Issuer as provided herein and who shall carry out the duties prescribed herein as the Issuer's agent to provide for the payment of principal of and interest on the Bonds as the same shall become due. "Permitted Investments" shall mean those obligations in which the Issuer is permitted to invest moneys of the Issuer under applicable law and the Issuer’s then- prevailing Investment Policy, as amended from time to time. "Principal" means the principal amount of such Bond. "Principal Maturity Date" means each date on which Principal is to become due on any Bonds, by maturity or mandatory sinking fund redemption, as established in the Series Resolution for such Bonds. "Project" shall mean the acquisition, construction, reconstruction, extension, improvement, repairing and equipping of any part of the System, in whole or in part with the proceeds of a series of Bonds. "Project Costs" with respect to any Project shall mean costs including the following: (a) obligations of the Issuer for labor and materials in connection with the construction, installation and equipping of the Project; (b) the cost of contract bonds and insurance of all kinds that may be required or necessary during the construction of the Project; (c) all costs of architectural and engineering services, including the costs of the Issuer for test borings, surveys, estimates, plans and specifications and preliminary investigation therefore, and for supervising construction, as well as for the performance of all other duties required by or consequent upon the proper construction of the Project; (d) all expenses incurred in connection with the issuance of Bonds, including without limitation compensation and expenses of any trustee, Registrar and Paying Agents, expenses of the Issuer, legal and accounting expenses and fees, costs of printing and engraving, recording and filing fees, compensation of underwriters, Rating Agency fees, costs of financial services, and accrued interest on the Bonds; (e) all sums required to reimburse the Issuer for advances made by it for any of the above items or for any other costs incurred and for work done, whether before or after the adoption of the Series Resolution, which are properly chargeable to the Project; and (f) all other components of cost of labor, materials, machinery, and equipment and financing charges attributable to the Project to the extent permitted by law. "Project Fund" shall mean the fund by that name established in Section 5.1 of this Resolution. "Rating" means a rating in one of the categories by a Rating Agency, disregarding pluses, minuses, and numerical gradations. "Rating Agencies""Rating Agency" or means Fitch, Inc., Moody's Investors Service, Inc., and Standard & Poor's, a division of The McGraw-Hill Companies, Inc., or 16 any successors thereto and any other nationally recognized credit rating agency then maintaining a rating on any Bonds at the request of the Issuer. If at any time a particular Rating Agency does not have a rating outstanding with respect to the relevant Bonds, then a reference to Rating Agency or Rating Agencies shall not include such Rating Agency. "Rebate Fund" means the fund by that name established in Section 6.10 of this Resolution. "Registrar" shall mean Wells Fargo Bank, National Association, or such successor as may be approved by the Issuer as provided herein and who shall carry out the duties prescribed herein with respect to maintaining a register of the owners of the Bonds. Unless otherwise specified, the Registrar shall also act as Transfer Agent for the Bonds. “Reimbursement Obligation” means the obligation of the Issuer to directly reimburse any Credit Facility Provider for amounts paid by such Credit Facility Provider under a Credit Facility, whether or not such obligation to so reimburse is evidenced by a promissory note or other similar instrument. "Representation Letter" shall mean the Blanket Issuer Letter of Representations executed by the Issuer and previously delivered to DTC. "Resolution" shall mean this Master Resolution of the Governing Body, as it may from time to time be modified, supplemented or amended by Supplemental Resolutions. "Revenue Fund" means the fund by that name established in Section 6.2 of this Resolution for the deposit of all Gross Revenues. "Senior Bonds" means the Series 2009A Bonds and any other Bonds, including other Senior SRF Bonds, issued with a right to payment and secured by a lien on the Net Revenues on a parity with the Series 2009A Bonds pursuant to Section 8.3 (except with respect to any Credit Facility which may be available only to one or more series of Senior Bonds and except that Senior SRF Bonds shall not be secured by the Debt Service Reserve Fund). "Senior SRF Bonds" means the Series 2009A Bonds and any other SRF Bonds which are issued as Senior Bonds (except with respect to any Credit Facility which may be available only to one or more series of Senior Bonds and except that Senior SRF Bonds shall not be secured by the Debt Service Reserve Fund). "Series 2009A Bonds" shall mean the $2,000,000 Sewer Revenue Capital Loan Notes, Series 2009A, dated the date of delivery, authorized to be issued pursuant to this Resolution. "Series 2009A Costs of Issuance Account" means the account by that name within the Project Fund established in Section 5.1 of this Resolution. "Series 2009A Project" means the acquisition, construction, reconstruction, extending, remodeling, improving, repairing and equipping all or part of the Municipal Sewer System, including those costs associated with construction of the West 32nd Street Detention Basin Project being funded with the proceeds of the Series 2009A Bonds. "Series Resolution" means a resolution or resolutions of the Governing Body (which may be supplemented by one or more resolutions) to be adopted prior to and authorizing the issuance and delivery of any series of Bonds. This Resolution shall constitute the Series Resolution for the Series 2009A Bonds. Such a Series Resolution as supplemented shall establish the date or dates of the pertinent series of Bonds, the schedule of maturities of such Bonds, the name of the purchaser(s) of such series of Bonds, the purchase price thereof, the rate or rates of interest to be borne thereby, whether fixed or variable, the interest payment dates for such Bonds, the terms and 17 conditions, if any, under which such Bonds may be made subject to redemption (mandatory or optional) prior to maturity, the form of such Bonds, and such other details as the Issuer may determine. “Sinking Fund” shall mean the Bond Principal and Interest Fund established in Section 6.5 of this Resolution. “SRF Bonds” shall mean such bonds, notes or other obligations as may be issued in connection with the Issuer’s participation in the SRF Program, which SRF Bonds may be Senior SRF Bonds or Subordinate SRF Bonds. "SRF Program" shall mean the Iowa Water Pollution Control Works Financing Program administered by the Iowa Finance Authority and Iowa Department of Natural Resources. "State" shall mean the State of Iowa. "Subordinate Bond Fund" means the fund by that name established in Section 6.7 of this Resolution. "Subordinate Bonds" means Bonds, including Subordinate SRF Bonds, issued with a right to payment from the Net Revenues and secured by a lien on the Net Revenues expressly junior and subordinate to the Senior Bonds. "Subordinate SRF Bonds" means the Outstanding Interim Loan and any other SRF Bonds which are issued as Subordinate Bonds. “Supplemental Resolution” means any Series Resolution and any modification, amendment or supplement to this Resolution (other than a Series Resolution). “Surplus Fund” means the fund by that name established in Section 6.8 of this Resolution. "System" shall mean the municipal sewer system utility of the Issuer and all properties of every nature hereinafter owned by the Issuer comprising part of or used as a part of the System, including all wastewater treatment facilities, sanitary sewers, force mains, pumping stations and all related property and improvements and extensions made by Issuer while any of the Bonds remain outstanding; all real and personal property; and all appurtenances, contracts, leases, franchises and other intangibles. "Tax Exemption Certificate" shall mean the Tax Exemption Certificate executed by the Treasurer and delivered at the time of issuance and delivery of the Series 2009A Bonds. "Treasurer" shall mean the City Treasurer or such other officer of the Issuer as shall succeed to the same duties and responsibilities with respect to the recording and payment of the Bonds issued hereunder. "Trustee" shall mean Wells Fargo Bank, National Association, with its principal office located in the City of Des Moines, Iowa, and its successors and any corporation resulting from or surviving any consolidation or merger to which it or its successors may be a party and any successor trustee under the Program. "U.S. Treasury Trust Receipts" means receipts or certificates which evidence an undivided ownership interest in the right to the payment of portions of the principal of or interest on obligations described in clauses (a) or (b) of the term Government Obligations, provided that such obligations are held by a bank or trust company organized under the laws of the United States acting as custodian of such obligations, in a special account separate from the general assets of such custodian. ARTICLE II THE BONDS Section 2.1. Authority . The Bonds authorized by this Resolution shall be issued pursuant to Chapter 384 of the Code of Iowa, and in compliance with all applicable provisions of the 18 Constitution and laws of the State of Iowa. The Bonds may be issued and sold from time to time in one or more series, may be designated "Sewer Revenue Bonds" or "Sewer Revenue Capital Loan Notes," and shall be in substantially the form set forth in the related Series Resolution, but such variations, omissions, substitutions, and insertions may be made therein, and such particular series designation, legends, or text may be endorsed thereon, as may be necessary or appropriate to conform to and as required or permitted by this Resolution and any Series Resolution or as may be necessary or appropriate to comply with applicable requirements of the Code. The Series 2009A Bonds authorized pursuant to Section 2.2 shall constitute the initial series of Bonds issued and delivered under, and secured by, this Resolution. As set forth in Section 8.8(b) hereof, the Outstanding Interim Loan shall be deemed to be a Subordinate SRF Bond under the terms hereof. Additional Senior Bonds may be issued from time to time as provided in, and subject to the limitations set forth in Section 8.3. Subordinate Bonds may be issued from time to time as provided in, and subject to the limitations set forth in, Section 8.4. Unless otherwise provided in a Series Resolution, each authenticated Bond shall bear interest from its dated date. Each Bond shall bear interest on overdue Principal at the rate borne by such Bond until the Principal balance thereof is paid in full. Unless otherwise provided in a Series Resolution, the Bonds shall be issued in fully registered form in Authorized Denominations and shall be dated as provided in the pertinent Series Resolution. The Principal of, premium, if any, and interest on the Bonds shall be payable in any coin or currency of the United States of America which, at the respective dates of payment thereof, is legal tender for the payment of public and private debts. The Bonds and the Registrar's Certificate of Authentication shall be in substantially the form set forth in the Series Resolution pursuant to which such series of Bonds are issued. Section 2.2. Series 2009A Bonds - Authorization and Purpose . Pursuant to Sections 384.24A and 384.82 of the Code of Iowa, there are hereby authorized to be issued, negotiable, serial, fully registered $2,000,000 Sewer Revenue Capital Loan Notes, Series 2009A, for the purpose of paying costs of acquisition, construction, reconstruction, extending, remodeling, improving, repairing and equipping all or part of the Municipal Sewer System, including those costs associated with construction of the West 32nd Street Detention Basin Project, and paying related Costs of Issuance. The Agreement is authorized to be executed and issued on behalf of the City by the Mayor and attested by the City Clerk. The Series 2009A Bonds shall be issued to evidence the obligations of the City under the Agreement pursuant to the provisions of Sections 384.24A and 384.82 of the City Code of Iowa for the aforesaid purpose. The Senior 2009A Bonds shall be designated “CITY OF DUBUQUE, IOWA, SEWER REVENUE CAPITAL LOAN NOTES, SERIES 2009A", be dated the date of delivery, and bear interest at the rate of 3.00% per annum from the date of each advancement made under the Agreement, until payment thereof, at the office of the Paying Agent, said interest payable on June 1, 2009, and semi-annually thereafter on the 1st day of June and December in each year until maturity as set forth on the debt service schedule attached to the Agreement as Exhibit B and incorporated herein by this reference. As set forth on said debt service schedule, principal shall be payable on June 1, 2009 and annually thereafter on the 1st day of June in the amounts set forth therein until principal and interest are fully paid, except that the final installment of the entire balance of principal and interest, if not sooner paid, shall become due and payable on June 1, 2028. Notwithstanding the foregoing or any other provision hereof, principal and interest shall be payable as shown on said debt service schedule until completion of the Series 2009A Project, at which time the final debt service schedule shall be determined by the Trustee based upon actual advancements, final 19 costs and completion of the Series 2009A Project, all as provided in the administrative rules governing the SRF Program. Payment of principal and interest on the Series 2009A Bonds shall at all times conform to said debt service schedule and the rules of the SRF Program. The Series 2009A Bonds and the Registrar’s Certificate of Authentication shall be in substantially the form set forth in Exhibit A attached hereto, with such variations, omissions, substitutions and insertions as are required or permitted by this Resolution. The Series 2009A Bonds shall be executed by the manual or facsimile signature of the Mayor and attested by the manual or facsimile signature of the City Clerk, and shall be fully registered as to both principal and interest as provided in this Resolution; principal, interest and premium, if any shall be payable at the office of the Paying Agent by mailing of a check, wire transfer or automated clearing house system transfer to the registered owner of the Bond. The Series 2009A Bonds shall be in the denomination of $1,000 or multiples thereof and may at the request of the Original Purchaser be initially issued as a single Note in the denomination of $2,000,000 and numbered R-1. In addition to the payment of principal of and interest on the Series 2009A Bonds, the Issuer also agrees to pay the Initiation Fee and the Servicing Fee as defined and in accordance with the terms of the Agreement. Section 2.3. Issuance of Bonds in Book-Entry Form; Replacement Bonds . (a) Notwithstanding the other provisions of this Resolution regarding registration, ownership, transfer, payment and exchange of the Bonds, unless the Issuer determines in a Series Resolution to permit the exchange of Depository Bonds for Bonds in the Authorized Denominations, the Bonds shall be issued as Depository Bonds in denominations of the entire principal amount of each maturity of Bonds (or, if a portion of said principal amount is prepaid, said principal amount less the prepaid amount); and such Depository Bonds shall be registered in the name of Cede & Co., as nominee of DTC. Payment of semi-annual interest for any Depository Bond shall be made by wire transfer or New York Clearing House or equivalent next day funds to the account of Cede & Co. on the interest payment date for the Bonds at the address indicated in or pursuant to the Representation Letter. (b) With respect to Depository Bonds, neither the Issuer nor the Paying Agent shall have any responsibility or obligation to any Participant or to any Beneficial Owner. Without limiting the immediately preceding sentence, neither the Issuer nor the Paying Agent shall have any responsibility or obligation with respect to (i) the accuracy of the records of DTC or its nominee or of any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant, any Beneficial Owner or any other person, other than DTC or its nominee, of any notice with respect to the Bonds, (iii) the payment to any Participant, any Beneficial Owner or any other person, other than DTC or its nominee, of any amount with respect to the principal of, premium, if any, or interest on the Bonds, or (iv) the failure of DTC to provide any information or notification on behalf of any Participant or Beneficial Owner. The Issuer and the Paying Agent may treat DTC or its nominee as, and deem DTC or its nominee to be, the absolute owner of each Bond for the purpose of payment of the principal of, premium, if any, and interest on such Bond, for the purpose of all other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes whatsoever (except for the giving of certain Bondholder consents, in accordance with the practices and procedures of DTC as may be applicable thereto). The Paying Agent shall pay all principal of, premium, if any, and interest on the Bonds only to or upon the order of the Bondholders as shown on the Bond Register, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to the principal of, premium, if any, and interest on the Bonds to the extent so paid. Notwithstanding the provisions of this Resolution to the contrary (including without limitation those provisions 20 relating to the surrender of Bonds, registration thereof, and issuance in Authorized Denominations), as long as the Bonds are Depository Bonds, full effect shall be given to the Representation Letter and the procedures and practices of DTC thereunder, and the Paying Agent shall comply therewith. (c) Upon (i) a determination by the Issuer that DTC is no longer able to carry out its functions or is otherwise determined unsatisfactory, or (ii) a determination by DTC that the Bonds are no longer eligible for its depository services or (iii) a determination by the Paying Agent that DTC has resigned or discontinued its services for the Bonds, if such substitution is authorized by law, the Issuer shall (A) designate a satisfactory substitute depository as set forth below or, if a satisfactory substitute is not found, (B) provide for the exchange of Depository Bonds for replacement Bonds in Authorized Denominations. (d) To the extent authorized by law, if the Issuer determines to provide for the exchange of Depository Bonds for Bonds in Authorized Denominations, the Issuer shall so notify the Paying Agent and shall provide the Registrar with a supply of executed unauthenticated Bonds to be so exchanged. The Registrar shall thereupon notify the owners of the Bonds and provide for such exchange, and to the extent that the Beneficial Owners are designated as the transferee by the owners, the Bonds will be delivered in appropriate form, content and Authorized Denominations to the Beneficial Owners, as their interests appear. (e) Any substitute depository shall be designated in writing by the Issuer to the Paying Agent. Any such substitute depository shall be a qualified and registered "clearing agency" as provided in Section 17A of the Securities Exchange Act of 1934, as amended. The substitute depository shall provide for (i) immobilization of the Depository Bonds, (ii) registration and transfer of interests in Depository Bonds by book entries made on records of the depository or its nominee and (iii) payment of principal of, premium, if any, and interest on the Bonds in accordance with and as such interests may appear with respect to such book entries. Section 2.4. Registration of Bonds; Appointment of Registrar; Transfer; Ownership; and Cancellation . (a) Registration. The ownership of Bonds may be transferred only by the making of an entry upon the books kept for the registration and transfer of ownership of the Bonds, and in no other way. The Treasurer is hereby appointed as Bond Registrar for the Series 2009A Bonds under the terms of this Resolution. Registrar shall maintain the books of the Issuer for the registration of ownership of the Bonds for the payment of principal of and interest on the Bonds as provided in this Resolution or the applicable Series Resolution. All Bonds shall be negotiable as provided in Article 8 of the Uniform Commercial Code, subject to the provisions for registration and transfer contained in the Bonds and in this Resolution or the applicable Series Resolution. (b) Transfer. The ownership of any Bond may be transferred only upon the Bond Register kept for the registration and transfer of Bonds and only upon surrender thereof at the office of the Registrar together with an assignment duly executed by the holder or his duly authorized attorney in fact in such form as shall be satisfactory to the Registrar, along with the address and social security number or federal employer identification number of such transferee (or, if registration is to be made in the name of multiple individuals, of all such transferees). In the event that the address of the registered owner of a Bond (other than a registered owner which is the nominee of the broker or dealer in question) is that of a broker or dealer, there must be disclosed on the Bond Register the information pertaining to the registered owner required above. Upon the transfer of any such Bond, a new fully registered Bond, of any denomination or denominations permitted by this Resolution or the applicable Series Resolution in aggregate principal amount equal to the unmatured and unredeemed principal amount of such transferred fully registered Bond, and bearing interest at the same rate and maturing on the same date or 21 dates shall be delivered by the Registrar. (c) Registration of Transferred Bonds. In all cases of the transfer of the Bonds, the Registrar shall register the Bonds, at the earliest practicable time, on the Bond Register in accordance with the provisions of this Resolution or the applicable Series Resolution. (d) Ownership. As to any Bond, the person in whose name the ownership of the same shall be registered on the Bond Register of the Registrar shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal of any such Bonds and the premium, if any, and interest thereon shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid. (e) Cancellation. All Bonds which have been redeemed shall not be reissued but shall be cancelled by the Registrar. All Bonds which are cancelled by the Registrar shall be destroyed and a certificate of the destruction thereof shall be furnished promptly to the Issuer; provided that if the Issuer shall so direct, the Registrar shall forward the cancelled Bonds to the Issuer. (f) Non-Presentment of Bonds. In the event any payment check representing payment of principal of or interest on the Bonds is returned to the Paying Agent or is not presented for payment of principal at the maturity or redemption date, if funds sufficient to pay such principal of or interest on Bonds shall have been made available to the Paying Agent for the benefit of the owner thereof, all liability of the Issuer to the owner thereof for such interest or payment of such Bonds shall forthwith cease, terminate and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the owner of such Bonds who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Resolution or the applicable Series Resolution or on, or with respect to, such interest or Bonds. The Paying Agent's obligation to hold such funds shall continue for a period equal to two years and six months following the date on which such interest or principal became due, whether at maturity, or at the date fixed for redemption thereof, or otherwise, at which time the Paying Agent, shall surrender any remaining funds so held to the Issuer, whereupon any claim under this Resolution or the applicable Series Resolution by the owners of such interest or Bonds of whatever nature shall be made upon the Issuer. Section 2.5. Reissuance of Mutilated, Destroyed, Stolen or Lost Bonds . In case any outstanding Bond shall become mutilated or be destroyed, stolen or lost, the Issuer shall at the request of Registrar authenticate and deliver a new Bond of like tenor and amount as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond to Registrar, upon surrender of such mutilated Bond, or in lieu of and substitution for the Bond destroyed, stolen or lost, upon filing with the Registrar evidence satisfactory to the Registrar and Issuer that such Bond has been destroyed, stolen or lost and proof of ownership thereof, and upon furnishing the Registrar and Issuer with satisfactory indemnity and complying with such other reasonable regulations as the Issuer or its agent may prescribe and paying such expenses as the Issuer may incur in connection therewith. Section 2.6. Record Date. Payments of principal and interest, otherwise than upon full redemption, made in respect of any Bond, shall be made to the registered holder thereof or to their designated agent as the same appear on the books of the Registrar on the 15th day preceding the payment date. All such payments shall fully discharge the obligations of the Issuer in respect of such Bonds to the extent of the payments so made. Payment of principal shall only be made upon surrender of the Bond to the Paying Agent. Section 2.7. Execution, Authentication and Delivery of the Series 2009A Bonds . Upon the adoption of this Resolution, the Mayor and City Clerk shall execute and deliver the Series 22 2009A Bonds to the Registrar, who shall authenticate the same and deliver the same to or upon order of the Original Purchaser. No such Bond shall be valid or obligatory for any purpose or shall be entitled to any right or benefit hereunder unless the Registrar shall duly endorse and execute on such Bond a Certificate of Authentication substantially in the form of the Certificate herein set forth. Such Certificate upon any such Bond executed on behalf of the Issuer shall be conclusive evidence that the Bond so authenticated has been duly issued under this Resolution and that the holder thereof is entitled to the benefits of this Resolution. Section 2.8. Right to Name Substitute Paying Agent or Registrar . Issuer reserves the right to name a substitute, successor Registrar or Paying Agent for any Bonds upon giving prompt written notice to each registered Bondholder. ARTICLE III REDEMPTION OF BONDS Section 3.1. Optional and Mandatory Redemption . (a) Redemption Generally. The Bonds shall be subject to optional and mandatory redemption as provided in the Series Resolution pursuant to which such series of Bonds are issued. (b) Optional Redemption of Series 2009A Bonds. The Series 2009A Bonds are subject to optional redemption at a price of par plus accrued interest (i) on any date upon receipt of written consent of the Original Purchaser or (ii) in the event that all or substantially all of the Series 2009A Project is damaged or destroyed. Any optional redemption of the Series 2009A Bonds may be made from any funds regardless of source, in whole or from time to time in part, in inverse order of maturity, by giving not less than thirty (30) days notice of redemption by certified or registered mail to the Original Purchaser (or any other registered owner of the Series 2009A Bonds). The terms of redemption shall be par, plus accrued interest to date of call. The Series 2009A Bonds are also subject to mandatory redemption as set forth in Section 5 of the Agreement. Section 3.2. Notice of Redemption . Unless waived by any registered owner of Bonds to be redeemed and except as may be otherwise provided in a Series Resolution, official notice of any such redemption shall be given by the Registrar of the Bonds to be redeemed on behalf of the Issuer by mailing a copy of an official redemption notice by first class mail, at least 30 days prior to the date fixed for redemption to the registered owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owner to the Registrar. All official notices of redemption shall be dated, shall contain the complete official name of the Bond issue, and shall state: (1) the redemption date; (2) the redemption price; (3) the interest rate, maturity date and CUSIP numbers of the Bonds being redeemed; (4) if less than all the Outstanding Bonds are to be redeemed, the Bond numbers, and, where part of the Bonds evidenced by one Bond certificate are being redeemed, the respective Principal amounts of such Bonds to be redeemed; (5) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after such date; and (6) the place where such Bonds are to be surrendered for payment of the redemption price (which place of payment shall be the principal payment office of the Paying Agent or at such other office designated by the Paying Agent for such purpose) and the name, address, and telephone number of a person or persons at the Paying Agent who may be contacted with respect to the redemption. 23 Any notice of an optional redemption of any Bonds (pursuant to Section 3.1(b) of this resolution or any other Series Resolution) may specify that the redemption is contingent upon the deposit of moneys with the Paying Agent in an amount sufficient to pay the redemption price (which price shall include the redemption premium, if any) of all the Bonds or portions of Bonds which are to be redeemed on that date. Prior to any redemption date, the Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. For so long as DTC is effecting book–entry transfers of the Bonds, the Registrar shall provide the notices specified in this Section to DTC. It is expected that DTC shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of DTC or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Registrar, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. Any defect in any notice of redemption shall not affect the validity of proceedings for redemption of the Bonds. Section 3.3. Effect of Notice of Redemption . Official notice of redemption having been given in the manner and under the conditions provided in this Article and moneys for payment of the redemption price being held by the Paying Agent as provided in the Series Resolution, the Bonds or portions of Bonds called for redemption shall, on the redemption date designated in such notice, become and be due and payable at the redemption price provided for redemption of such Bonds or portions of Bonds on such date, and from and after such date interest on the Bonds or portions of Bonds called for redemption shall cease to accrue, such Bonds or portions of Bonds shall cease to be entitled to any lien, benefit, or security under the Series Resolution, and the owners of such Bonds or portions of Bonds shall have no rights in respect thereof except to receive payment of the redemption price thereof. Upon surrender for partial redemption of any Bond, there shall be prepared for and delivered to the registered owner a new Bond or Bonds of the same series, maturity, and interest rate in the amount of the unpaid Principal. Section 3.4. Redemption Among Series . Subject to the redemption provisions of any Series Resolution, the Issuer in its discretion may redeem the Bonds of any series, or a portion of the Bonds of any such series, before it redeems the Bonds of any other series. Within any particular series, any redemption of Bonds shall be effected in the manner provided in this Resolution and in any Series Resolution. Section 3.5. Selection of Bonds to be Redeemed . If less than all of the Bonds of like maturity of any series shall be called for redemption, the particular Bonds, or portions of Bonds, to be redeemed shall be selected by the Paying Agent in such equitable manner as the Paying Agent may determine. The portion of any Bond of a denomination of more than $5,000 to be redeemed shall be in the Principal amount of $5,000 or an integral multiple thereof, and, in selecting portions of such Bonds for redemption, the Issuer shall treat each such Bond as representing that number of Bonds which is obtained by dividing the Principal of such Bond to be redeemed in part by $5,000. Section 3.6. Purchase in Open Market . Nothing herein contained shall be construed to limit the right of the Issuer to purchase with any excess moneys in the Sinking Fund (i.e., moneys not needed in the then current Fiscal Year to pay Principal of and interest on any Senior Bonds) and for Sinking Fund purposes, any Senior Bonds in the open market. Any such Senior Bonds so purchased shall not be reissued and shall be cancelled. ARTICLE IV 24 APPLICATION OF PROCEEDS Section 4.1. Application of Series 2009A Bond Proceeds . The proceeds of the Series 2009A Bonds shall be applied as follows: (i) An amount sufficient to pay Costs of Issuance of the Series 2009A Bonds shall be deposited into the Series 2009A Costs of Issuance Account. (ii) The balance of the proceeds shall be deposited in the Series 2009A Account of the Project Fund and applied to pay Project Costs of the Series 2009A Project. ARTICLE V PROJECT FUND Section 5.1. Project Fund . There is hereby established a Project Fund and within the Project Fund, there shall be established a separate account for each Project and a separate Costs of Issuance Account for each series of Bonds issued under a Series Resolution; provided, however, that in the case of the Series 2009A Bonds and any other SRF Bonds, the Project Fund shall mean the Loan Account maintained by the Trustee under the SRF Program for the benefit of the City, into which the proceeds of the Loan and the Series 2009A Bonds shall be allocated and held until disbursed to pay Project Costs of the Series 2009A Bonds. Except as may be otherwise provided herein or in the Series Resolution authorizing the issuance of SRF Bonds, moneys in the Project Fund shall be held as may from time to time be designated by the Issuer, and applied to the payment of the Project Costs, or for the repayment of advances made for that purpose in accordance with and subject to the provisions and restrictions set forth in this Article. The Issuer covenants that it will not cause or permit to be paid from the Project Fund any sums except in accordance with such provisions and restrictions; provided, however, that any moneys in the Project Fund not presently needed for the payment of current obligations during the course of construction may be invested in Permitted Investments maturing not later than (i) the date upon which such moneys will be needed or (ii) 36 months from the date of purchase, in either case upon direction of the Treasurer. Any such investments shall be held in trust for the account of the Project Fund until maturity or until sold, and at maturity or upon such sale the proceeds received therefrom including accrued interest and premium, if any, shall be immediately deposited in the Project Fund and shall be disposed of in the manner and for the purposes provided in the Resolution. At such time as all Costs of Issuance have been paid, and in any case not later than 6 months after the date of issuance of the applicable series of Bonds, any money in a Costs of Issuance Account shall be transferred to the applicable account of the Project Fund. Section 5.2. Funds Remaining on Completion of Projects . For each series of Bonds, the Issuer shall, when a Project has been completed, and may, when a Project has been substantially completed, estimate what portion of the funds remaining in the separate account relating to such Project will be required by the Issuer for the payment or reimbursement of the Project Costs of such Project, and thereafter such funds that will not be used shall be, at the direction of the Governing Body, either (1) applied to pay the costs of other Projects, (2) transferred to the Sinking Fund and used to redeem Bonds of the related series on the next redemption date or to pay Principal of such Bonds on the next Principal Maturity Date, or (3) transferred to the Sinking Fund and used to pay interest on Bonds of the related series, provided that the Issuer shall first obtain an opinion of bond counsel to the effect that, under existing law, the application of such moneys to pay interest on such Bonds (a) is allowed under State law, and (b) if such Bonds are tax-exempt Bonds, will not, by itself and without more, adversely affect the exclusion from gross income for federal income tax purposes of interest payable on such Bonds. When all moneys have been withdrawn or transferred from any separate account within the Project Fund in accordance with the provisions of this Section, such separate account shall terminate and cease to exist. 25 ARTICLE VI PLEDGE OF NET REVENUES AND FLOW OF FUNDS Section 6.1. Pledge of Revenues; Limited Obligations . Subject only to the rights of the Issuer to apply amounts as provided in this Article VI, all Net Revenues shall be and are hereby pledged to the prompt payment of the Principal of, premium, if any, and interest on the Bonds; provided, however, that the pledge of the Net Revenues to any Subordinate Bonds shall be junior and subordinate in lien and right of payment to all Senior Bonds Outstanding at any time. Such moneys and securities shall immediately be subject to the lien of this pledge for the benefit of the Bondholders without any physical delivery thereof or further act, and the lien of this pledge shall be valid and binding against the Issuer and against all other persons having claims against the Issuer, whether such claims shall have arisen in tort, contract, or otherwise, and regardless of whether such persons have notice of the lien of this pledge. This pledge shall rank superior to all other pledges which may hereafter be made of any of the Net Revenues. The lien of the pledge made in this Section does not secure any obligation of the Issuer other than the Bonds. The Bonds shall be limited obligations of the Issuer as provided therein payable solely from the Net Revenues. The Bonds and the interest thereon shall not constitute a general or moral obligation of the Issuer nor a debt, indebtedness, or obligation of the Issuer or the State or any political subdivision thereof within the meaning of any constitutional, statutory or charter provision whatsoever. No taxing power of the Issuer is pledged to the payment of the Principal of, premium, if any, or interest on the Bonds or other costs incident thereto. Neither the members of the Governing Body nor any person executing the Bonds shall be liable personally on the Bonds by reason of the issuance thereof. Section 6.2. Special Funds . The following special funds shall be established, maintained and accounted for as hereinafter provided so long as any of the Bonds remain Outstanding: (a) Revenue Fund; (b) Operation and Maintenance Fund; (c) Bond Principal and Interest Fund; (d) Debt Service Reserve Fund; (e) Subordinate Bond Fund (while Subordinate Bonds are Outstanding); (f) Surplus Fund; and (g) Rebate Fund. The Issuer shall have the right to create special accounts, from time to time, in each of the foregoing Funds as the Governing Body determines to be desirable. Section 6.3. Flow of Funds . All Gross Revenues shall be deposited as received into the Revenue Fund. Moneys from time to time credited to the Revenue Fund shall be applied to the funds hereby established in the following order of priority: (a) First, to transfer to the Operation and Maintenance Fund sufficient amounts required for the payment of all current Operation and Maintenance Expenses, as provided in Section 6.4 of this Resolution. (b) Second, to transfer all amounts to the Bond Principal and Interest Fund as required by Section 6.5 of this Resolution. (c) Third, to transfer all amounts to the Debt Service Reserve Fund as required by Section 6.6 of this Resolution. (d) Fourth, to transfer all amounts to the Rebate Fund as required by Section 6.10 of this Resolution. (e) Fifth, to transfer all amounts to the Subordinate Bond Fund as required by Section 6.7 of this Resolution. (f) Sixth, to make deposits to the Surplus Fund as required in Section 6.8 of this 26 Resolution. Section 6.4. Operation and Maintenance Fund . Money in the Revenue Fund shall first be disbursed to make deposits into the Operation and Maintenance Fund. There shall be deposited in the Operation and Maintenance Fund each month an amount sufficient to pay the Operation and Maintenance Expenses due, or expected to come due, during the month, plus an amount equal to one/twelfth of expenses payable on an annual basis such as insurance. After the first day of the month, further deposits may be made to the Operations and Maintenance Fund from the Revenue Fund to the extent necessary to pay current Operation and Maintenance Expenses accrued and payable to the extent that funds are not available in the Surplus Fund. Section 6.5. Bond Principal and Interest Fund . On or before the last business day of each month so long as any Bonds remain Outstanding, there shall next be transferred into the Bond Principal and Interest Fund (also referred to as the “Sinking Fund”) from the Revenue Fund, to the extent not funded from capitalized interest, the following amounts: (a) General. Sufficient moneys shall be paid in periodic installments from the Revenue Fund into the Sinking Fund for the purpose of paying the Principal of and interest on the Senior Bonds as they become due and payable. Amounts held in the Sinking Fund shall be used solely to pay interest and Principal of the Senior Bonds as the same become due and payable (whether at maturity or upon redemption). (b) Interest. On or before the 30th day preceding each Interest Payment Date for Senior Bonds, the Issuer shall deposit in the Sinking Fund an amount which, together with any other moneys already on deposit therein and available to make such payment, is not less than the interest coming due on such Senior Bonds on such Interest Payment Date. (c) Principal. On or before the 30th day preceding each Principal Maturity Date for Senior Bonds, the Issuer shall deposit in the Sinking Fund an amount which, together with any other moneys already on deposit therein and available to make such payment, is not less than the Principal coming due on such Senior Bonds on such Principal Maturity Date. (d) Application of Money in Sinking Fund. No further payments need be made into the Sinking Fund whenever the amount available in the Sinking Fund, if added to the amount then in the Debt Service Reserve Fund, is sufficient to retire all Senior Bonds then Outstanding and to pay all unpaid interest accrued and to accrue prior to such retirement. No moneys in the Sinking Fund shall be used or applied to the optional purchase or redemption of Senior Bonds prior to maturity unless: (i) provision shall have been made for the payment of all of the Senior Bonds; or (ii) such moneys are applied to the purchase and cancellation of Senior Bonds which are subject to mandatory redemption on the next mandatory redemption date, which falls due within 12 months, such Senior Bonds are purchased at a price not more than would be required for mandatory redemption, and such Senior Bonds are cancelled upon purchase; or (iii) such moneys are in excess of the then required balance of the Sinking Fund and are applied to redeem a part of the Senior Bonds Outstanding on the next succeeding redemption date for which the required notice of redemption may be given. Section 6.6. Debt Service Reserve Fund . There shall be deposited into the Debt Service Reserve Fund the amounts specified in Series Resolutions with respect to additional Senior Bonds. Notwithstanding the foregoing, there shall be no deposit into the Debt Service Reserve Fund with respect to the Series 2009A Bonds or any other SRF Bonds nor shall the Debt Service Reserve Fund secure any SRF Bonds. After the issuance of any Senior Bonds, the increase in the amount of the Debt Service Reserve Requirement resulting from the issuance of such Senior Bonds shall be accumulated, to the extent not covered by deposits from Bond proceeds or funds on hand, over a period not exceeding 61 months from the date of delivery of such Senior Bonds in monthly deposits ("Accumulation Payments"), none of which is less than 27 1/60 of the amount to be accumulated. The balance of the Debt Service Reserve Fund shall be maintained at an amount equal to the Debt Service Reserve Requirement (or such lesser amount that is required to be accumulated in the Debt Service Reserve Fund in connection with the periodic accumulation to the Debt Service Reserve Requirement after the issuance of Senior Bonds). There shall be transferred from the Revenue Fund to the Debt Service Reserve Fund the amount necessary to restore, as further described below, the amount of cash and securities in the Debt Service Reserve Fund to an amount equal to the Debt Service Reserve Requirement (or such lesser monthly amount that is required to be deposited into the Debt Service Reserve Fund after the issuance of Senior Bonds). Whenever for any reason the amount in the Sinking Fund is insufficient to pay all interest or Principal becoming due on the Senior Bonds within the next seven days, the Issuer shall make up any deficiency by transfers from the following funds and accounts, in the following order of priority: first, from the Surplus Fund; and second, from the funds and accounts of the Issuer relating to Subordinate Bonds which are not Subordinate SRF Bonds. Whenever, on the date that such interest or Principal is due, there are insufficient moneys in the Sinking Fund available to make such payment, the Issuer shall, without further instructions, apply so much as may be needed of the moneys in the Debt Service Reserve Fund to prevent default in the payment of such interest or Principal, with priority to interest payments. Whenever by reason of any such application or otherwise (other than required Accumulation Payments), the amount remaining to the credit of the Debt Service Reserve Fund is less than the amount then required to be in the Debt Service Reserve Fund, such deficiency shall be remedied by monthly deposits from the Revenue Fund, to the extent funds are available in the Revenue Fund for such purpose after all required transfers set forth above have been made. Section 6.7. Subordinate Bond Fund . On or before the last business day of each month so long as any Subordinate Bonds remain Outstanding, there shall next be transferred into the Subordinate Bond Fund from the Revenue Fund such amounts as may be required to be deposited into the funds and accounts created by any Series Resolution authorizing the issuance of Subordinate Bonds, for the purpose of paying Principal of and interest on Subordinate Bonds, and accumulating reserves for such payments. Moneys credited to the Subordinate Bond Fund shall be used solely for the purpose provided in the Series Resolutions authorizing the Subordinate Bonds. Section 6.8. Surplus Fund . After making all payments and transfers hereinabove required, all amounts remaining in the Revenue Fund shall be transferred by the last day of each month to the Surplus Fund. Amounts credited to the Surplus Fund may be used for any lawful System purposes, including without limitation, to pay for any Projects, to pay costs of replacing any depreciable property or equipment of the System, to pay costs of any major or extraordinary repairs, replacements or renewals of the System, to acquire land or any interest therein, to pay any lease or contractual obligations not paid as Operation and Maintenance Expenses and to make any transfers required to cure any deficiencies in any funds. Section 6.9. Deficiencies in Funds . If in any month there shall not be transferred into any fund maintained pursuant to this Article, the full amounts required herein, amounts equivalent to such deficiency shall be set apart and transferred to such fund or funds from the first available and unallocated moneys in the Revenue Fund, and such transfer shall be in addition to the amounts otherwise required to be transferred to such funds during any succeeding month or months. Section 6.10. Rebate Fund . The Issuer shall calculate, from time to time, as required in order to comply with the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended, the amounts required to be rebated (including penalties) to the United States and 28 shall deposit or cause to be deposited into the Rebate Fund any and all of such amounts promptly following a determination of any such amount. The Issuer shall direct any depository of the Rebate Fund to keep all moneys held therein invested in Permitted Investments. To the extent and at the times required in order to comply with Section 148(f) of the Code, the Issuer may withdraw funds from the Rebate Fund for the purpose of making rebate payments (including penalties) to the United States as required by Section 148(f) of the Code. Except as otherwise specifically provided in this Section, moneys in the Rebate Fund may not be withdrawn from the Rebate Fund for any other purpose. All Investments Earnings held in the Rebate Fund shall be retained in the Rebate Fund and shall become part of the Rebate Fund. Moneys held in the Rebate Fund, including the Investment Earnings thereon, if any, shall not be subject to a pledge in favor of the owners of the Bonds under the Series Resolution and may not be used to pay amounts due on the Bonds or amounts required for the operation, maintenance, enlargement, or extension of the System. Whenever the Issuer has filed all reports required to be filed with the United States pursuant to Section 148(f) of the Code with respect to any series of Bonds and has made all payments required to be made to the United States pursuant to Section 148(f) of the Code relating thereto, all moneys or investments remaining in the Rebate Fund may be transferred to the Surplus Fund, and such moneys and investments may be used by the Issuer for any lawful purpose. Section 6.11. Investment of Funds; Transfer of Investment Earnings. (a) Monies in all funds shall, at the option and direction of the Treasurer, be invested and secured in the manner required by law for public funds, in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, or in any other Permitted Investments; provided that all such deposits and investments shall be made in such manner that the money required to be expended from any fund will be available at the proper time or times. All such investments shall be valued no less frequently than the last business day of the Issuer's fiscal year at cost (taking into account normal amortization and accretions of premiums and discounts) or, in the case of investments having a maturity greater than five years from the date of valuation, at market value, except that any direct obligations of the United States of America - State and Local Government Series shall be continuously valued at their par value or principal face amount. For purposes of maximizing investment returns, money in such funds may be invested, together with money in other funds or with other money of the Issuer, in common investments of the kind described above, or in a common pool of such investments maintained by the Issuer which shall be kept and held at an official depository of the Issuer, which shall not be deemed to be a loss of the segregation of such money or funds. Safekeeping receipts, certificates of participation or other documents clearly evidencing the investment or investment pool in which such money is invested and the share thereof purchased with such money or owned by such fund shall be held by or on behalf of each such fund. If and to the extent necessary, such investments shall be promptly sold to prevent any default. (b) To the extent it is not otherwise provided for in a Series Resolution or is needed to eliminate a deficiency, all Investment Earnings derived from deposits and investments credited to the funds established in this Article shall be transferred or credited to the Revenue Fund. (c) Notwithstanding anything to the contrary contained herein, any interest and income derived from deposits and investment of any amounts credited to any fund or account may be paid to the federal government if in the written opinion of bond counsel such payment is required in order to prevent interest on any Bonds from being includable within the gross income of the owners thereof for federal income tax purposes. ARTICLE VII 29 GENERAL PROVISIONS Section 7.1. Rate Covenant . The Issuer shall continuously own, control, operate, and maintain the System in an efficient and economical manner and on a revenue producing basis and shall at all times prescribe, fix, maintain and collect rates, fees and other charges for the services and facilities furnished by the System that are fully sufficient at all times to: (a) provide for 100% of the budgeted Operation and Maintenance Expenses and for the accumulation in the Revenue Fund of a reasonable reserve therefore; and (b) produce Net Revenues in each Fiscal Year which: (a) will equal at least 110% of the Debt Service Requirement on all Senior Bonds then Outstanding for the year of computation; (b) will enable the Issuer to make all required payments, if any, into the Debt Service Reserve Fund and the Rebate Fund; (c) will enable the Issuer to accumulate an amount which, in the judgment of the Governing Body, is adequate to meet the costs of major renewals, replacements, repairs, additions, betterments, and improvements to the System, necessary to keep the same in good operating condition or as is required by any governmental agency having jurisdiction over the System; and (d) will remedy all deficiencies in required payments into any of the funds and accounts established under the Resolution from prior Fiscal Years. If the Issuer fails to prescribe, fix, maintain and collect rates, fees and other charges in accordance with the provisions of this Section, the owners of not less than 25% in aggregate principal of the Bonds then Outstanding, without regard to whether any Event of Default shall have occurred, may institute and prosecute in any court of competent jurisdiction an appropriate action to compel the Issuer to prescribe, fix, maintain and collect rates, fees and other charges in accordance with the requirements of this Section. Section 7.2. Other Covenants Regarding the Operation of the System . The Issuer hereby covenants and agrees with each and every holder of the Bonds as follows: (a) Maintenance and Efficiency. The Issuer will maintain the System in good condition and operate it in an efficient manner and at reasonable cost. (b) Insurance. The Issuer shall maintain insurance for the benefit of the holders on the insurable portions of the System of a kind and in an amount which normally would be carried by private companies engaged in a similar kind of business. The proceeds of any insurance, except public liability insurance, shall be used to repair or replace the part or parts of the System damaged or destroyed, or if not so used shall be placed in the Operations and Maintenance Fund. (c) Accounting and Audits. The Issuer will cause to be kept proper books and accounts adapted to the System and in accordance with generally accepted accounting practices, and will diligently act to cause the books and accounts to be audited annually and reported upon not later than 180 days after the end of each Fiscal Year, or as soon thereafter as is practicable, by an Independent Auditor and will provide copies of the audit report to the Bondholders upon request. The Bondholders shall have at all reasonable times the right to inspect the System and the records, accounts and data of the Issuer relating thereto. (d) State Laws. The Issuer will faithfully and punctually perform all duties with reference to the System required by the Constitution and laws of the State of Iowa, including the making and collecting of reasonable and sufficient rates for services rendered by the System as above provided, and will segregate the revenues of the System and apply said revenues to the funds specified in this Resolution. (e) Property. The Issuer will not sell, lease, mortgage or in any manner dispose of the 30 System, or any capital part thereof, including any and all extensions and additions that may be made thereto, until satisfaction and discharge of all of the Bonds shall have been provided for in the manner provided in this Resolution; provided, however, that this covenant shall not be construed to prevent the disposal by the Issuer of property which in the judgment of the Governing Body has become inexpedient or unprofitable to use in connection with the System, or if it is to the advantage of the System that other property of equal or higher value be substituted therefore, and provided further that the proceeds of the disposition of such property shall be placed in the Operations and Maintenance Fund and used in preference to other sources for capital improvements to the System. (f) Fidelity Bond. The Issuer shall maintain fidelity bond coverage in amounts which normally would be carried by private companies engaged in a similar kind of business on each officer or employee having custody of funds of the System. (g) Additional Charges. The Issuer will require proper connecting charges and/or other security for the payment of services charges. (h) Budget. The Governing Body of the Issuer shall approve and conduct operations pursuant to a system budget of revenues and current expenses for each Fiscal Year. Such budget shall take into account revenues and expenses during the current and last preceding Fiscal Years. Section 7.3. Disposition of Bond Proceeds; Arbitrage Not Permitted . The Issuer reasonably expects and covenants that no use will be made of the proceeds from the issuance and sale of the Series 2009A Bonds issued hereunder which will cause any of the Series 2009A Bonds to be classified as arbitrage bonds within the meaning of Section 148(a) and (b) of the Code, and that throughout the term of said Series 2009A Bonds it will comply with the requirements of said statute and regulations issued thereunder. To the best knowledge and belief of the Issuer, there are no facts or circumstances that would materially change the foregoing statements or the conclusion that it is not expected that the proceeds of the Series 2009A Bonds will be used in a manner that would cause such Bonds to be arbitrage bonds. Without limiting the generality of the foregoing, the Issuer hereby agrees to comply with the provisions of the Tax Exemption Certificate and the provisions of the Tax Exemption Certificate are hereby incorporated by reference as part of this Resolution. The Treasurer is hereby directed to make and insert all calculations and determinations necessary to complete the Tax Exemption Certificate in all respects and to execute and deliver the Tax Exemption Certificate at issuance of the Series 2009A Bonds to certify as to the reasonable expectations and covenants of the Issuer at that date. The Issuer covenants that it will treat as yield restricted any proceeds of the Series 2009A Bonds remaining unexpended after three years from the issuance and any other funds required by the Tax Exemption Certificate to be so treated. If any investments are held with respect to the Series 2009A Bonds, the Issuer shall treat the same for the purpose of restricted yield as held in proportion to the original principal amounts of each issue. The Issuer covenants that it will exceed any investment yield restriction provided in this Resolution only in the event that it shall first obtain an opinion of bond counsel that the proposed investment action will not cause the Series 2009A Bonds to be classified as arbitrage bonds under Section 148(a) and (b) of the Code. The Issuer covenants that it will proceed with due diligence to spend the proceeds of the Series 2009A Bonds for the purpose set forth in this Resolution. The Issuer further covenants that it will make no change in the use of the proceeds available for the construction of facilities or change in the use of any portion of the facilities constructed therefrom by persons other than the Issuer or the general public unless it has obtained an opinion of bond counsel or a revenue ruling that the proposed project or use will not be of such character as to cause interest on any 31 of the Series 2009A Bonds not to be exempt from federal income taxes in the hands of holders under the provisions of the Code. Section 7.4. Additional Covenants, Representations and Warranties of the Issuer . The Issuer certifies and covenants with the purchasers and holders of the Series 2009A Bonds from time to time outstanding that the Issuer through its officers, (a) will make such further specific covenants, representations and assurances as may be necessary or advisable; (b) comply with all representations, covenants and assurances contained in the Tax Exemption Certificate, which Tax Exemption Certificate shall constitute a part of the contract between the Issuer and the owners of the Series 2009A Bonds; (c) consult with bond counsel (as defined in the Tax Exemption Certificate); (d) pay to the United States, as necessary, such sums of money representing required rebates of excess arbitrage profits relating to the Series 2009A Bonds; (e) file such forms, statements and supporting documents as may be required and in a timely manner; and (f) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other persons to assist the Issuer in such compliance. ARTICLE VIII SENIOR BONDS AND SUBORDINATE BONDS Section 8.1. No Prior Lien Bonds nor Senior Bonds Except as Permitted in the Resolution. All Senior Bonds shall have complete parity of lien on the Net Revenues despite the fact that any of the Senior Bonds may be delivered at an earlier date than any other of the Senior Bonds. The Issuer may issue Senior Bonds in accordance with this Resolution, but the Issuer shall issue no other obligations of any kind or nature payable from or enjoying a lien on the Net Revenues or any part thereof having priority over or, except as permitted in this Resolution, on a parity with the Series 2009A Bonds. Section 8.2. Refunding Bonds. Any or all of the Senior Bonds may be refunded prior to maturity, upon redemption in accordance with their terms, or with the consent of the owners of such Senior Bonds, and the refunding Bonds so issued shall constitute Senior Bonds, if the Issuer shall have obtained a report from an Independent Auditor or a Financial Advisor demonstrating that the refunding will reduce the total debt service payments on the Senior Bonds being refunded on a present value basis or, as an alternative to, and in lieu thereof, the Senior Bonds are being refunded under arrangements which immediately result in making provision for the payment of the refunded Bonds. Section 8.3. Senior Bonds. Bonds (including refunding Bonds which do not meet the requirements of Section 8.2) may also be issued on a parity with the Series 2009A Bonds pursuant to a Series Resolution, and the Bonds so issued shall constitute Senior Bonds, if all of the following conditions are satisfied: (a) The Issuer shall have received, at or before issuance of the Senior Bonds, a report by an Independent Auditor or Financial Advisor to the effect that the historical Net Revenues for the preceding Fiscal Year were equal to at least 125% of the Maximum Annual Debt Service Requirement on all Senior Bonds which will be Outstanding immediately after the issuance of the proposed Senior Bonds. The report by the Independent Auditor or Financial Advisor as aforesaid may contain proforma adjustments to historical Net Revenues equal to 100% of the increased annual amount attributable to any revision in the schedule of rates, fees and charges for the services and facilities furnished by the System, adopted prior to the date of delivery of the proposed Senior Bonds and not fully reflected in the historical Net Revenues actually received during such 12 month period. For purposes of this Section, “preceding Fiscal Year” shall be the most recently completed Fiscal Year for which audited financial statements prepared by a certified 32 public accountant are issued and available, but in no event a Fiscal Year which ended more than eighteen (18) months prior to the date of issuance of the additional Senior Bonds. (b) The Issuer shall have received, at or before issuance of the Senior Bonds, a report from an Independent Auditor or Financial Advisor to the effect that the payments required to be made into each account of the Sinking Fund, the Debt Service Reserve Fund and the Subordinate Bond Fund have been made and the balance in each account of each such Fund is not less than the balance required by this Resolution as of the date of issuance of the proposed Senior Bonds. (c) The Series Resolution authorizing the proposed Senior Bonds must require (i) that the amount to be accumulated and maintained in the Debt Service Reserve Fund be increased to not less than 100% of the Debt Service Reserve Requirement computed on a basis which includes all Senior Bonds (other than Senior SRF Bonds) which will be Outstanding immediately after issuance of the proposed Senior Bonds and (ii) that the amount of such increase be deposited in the Debt Service Reserve Fund on or before the date and at least as fast as specified in Section 6.6 of this Resolution. (d) The Series Resolution authorizing the proposed Senior Bonds must require the proceeds of such proposed Senior Bonds to be used solely to make capital improvements to the System, to fund interest on the proposed Senior Bonds, to acquire existing or proposed Sewer utilities, extensions or related facilities, to refund other obligations issued for such purposes (whether or not such refunding Bonds satisfy the requirements of Section 8.2), and to pay expenses incidental thereto and to the issuance of the proposed Senior Bonds. (e) Notwithstanding the foregoing or anything herein to the contrary, if only SRF Bonds are then outstanding, additional Senior SRF Bonds may be issued as provided in this Resolution without complying with the provisions of Sections 8.3(a), (b) and (c) hereof, and said provisions shall not apply. Section 8.4. Subordinate Bonds. (a) Bonds may also be issued on a subordinate basis to the Series 2009A Bonds and any other Senior Bonds pursuant to a Series Resolution, and the Bonds so issued shall constitute Subordinate Bonds, if all of the following conditions are satisfied: (1) The Series Resolution authorizing the Subordinate Bonds shall provide that such Subordinate Bonds shall be junior and subordinate in lien and right of payment to all Senior Bonds Outstanding at any time. (2) The Series Resolution authorizing the Subordinate Bonds shall establish funds and accounts for the moneys to be used to pay debt service on the Subordinate Bonds, and to provide any desired reserves therefore. (3) The requirements of Section 8.3(d) are met with respect to such Subordinate Bonds (as if such Bonds constituted Senior Bonds). (b) In the event of any insolvency or bankruptcy proceedings, and any receivership, liquidation, reorganization, or other similar proceedings in connection therewith, relative to the Issuer or to its creditors, as such, or to its property, and in the event of any proceedings for voluntary liquidation, dissolution, or other winding up of the Issuer, whether or not involving insolvency or bankruptcy, the owners of all Senior Bonds then Outstanding shall be entitled to receive payment in full of all Principal and interest due on all such Senior Bonds in accordance with the provisions of the Series Resolution before the owners of the Subordinate Bonds are entitled to receive any payment from the Net Revenues or the amounts held in the funds and accounts created under the Series Resolution on account of Principal of, premium, if any, or interest on the Subordinate Bonds. 33 (c) If any Event of Default shall have occurred and be continuing (under circumstances when the provisions of paragraph (b) are not applicable), the owners of all Senior Bonds then Outstanding shall be entitled to receive payment in full of all Principal and interest then due on all such Senior Bonds before the owners of the Subordinate Bonds are entitled to receive any Payment from the Net Revenues or the amounts held in the funds and accounts created under the Series Resolution of Principal of, premium, if any, or interest on the Subordinate Bonds. (d) Any series of Subordinate Bonds may have such rank or priority with respect to any other series of Subordinate Bonds as may be provided in the Series Resolution authorizing such series of Subordinate Bonds and may contain such other provisions as are not in conflict with the provisions of the Series Resolution. Section 8.5. Accession of Subordinate Bonds to Senior Status . By proceedings authorizing all or any Subordinate Bonds, the Issuer may provide for the accession of such Subordinate Bonds to the status of complete parity with the Senior Bonds if, as of the date of accession, the conditions of Section 8.3 are satisfied, on a basis which includes all Outstanding Senior Bonds and such Subordinate Bonds, and if on the date of accession: (a) the Debt Service Reserve Fund contains an amount equal to the Debt Service Reserve Requirement computed on a basis which includes all Outstanding Senior Bonds and such Subordinate Bonds (but which excludes, in the case of both Outstanding Senior Bonds and such Subordinate Bonds, any SRF Bonds); and (b) the Sinking Fund contains the amount which would have been required to be accumulated therein on the date of accession if the Subordinate Bonds had originally been issued as Senior Bonds. Section 8.6. Adoption of Proceedings . The Governing Body shall adopt a Series Resolution authorizing the issuance of any additional Bonds and reciting that the requirements of this Article have been satisfied, and shall set forth in such proceedings, among other things, the date or dates such additional Bonds shall bear and the rate or rates of interest, interest payment date or dates, maturity date or dates, and redemption provisions with respect to such additional Bonds and any other matters applicable to such additional Bonds as the Governing Body may deem advisable. Any such Series Resolution shall restate and reaffirm, by reference, all of the applicable terms, conditions and provisions of this Resolution not modified by the Series Resolution. Section 8.7. Proceedings Authorizing Additional Bonds . No Series Resolution authorizing the issuance of additional Bonds as permitted under this Article shall conflict with the terms and conditions of this Resolution, except to the extent that the Series Resolution is adopted for one of the purposes set forth in Section 11.1 and complies with the provisions of Section 11.1 for the adoption of Supplemental Resolutions without the consent of Bondholders. Section 8.8. Applicability to Additional Bonds and Outstanding Interim Loan . (a) The provisions of this Resolution shall be construed as including and being applicable to any future series of Bonds, and any such Bonds shall be treated, unless otherwise specifically stated, as if they had been issued together with the Series 2009A Bonds and pursuant to the terms of this Resolution. (b) The Outstanding Interim Loan shall be deemed to be a Subordinate SRF Bond within the meaning of this Resolution. This Resolution shall be construed whenever possible so as not to conflict with the terms and conditions of the Interim Loan and Disbursement Agreement approved and entered into at the time of issuance of the Outstanding Interim Loan. In the event such construction is not possible, or in the event of any conflict or inconsistency between the terms hereof and those of the foregoing Interim Loan and Disbursement Agreement, the terms of said Interim Loan and Disbursement Agreement shall prevail and be given effect to the extent necessary to resolve any such conflict or inconsistency. 34 Section 8.9. Credit Facilities. In connection with the issuance of any Bonds under the Series Resolution, the Issuer may obtain or cause to be obtained one or more Credit Facilities providing for payment of all or a portion of the Principal of, premium, if any, or interest due or to become due on such Bonds, providing for the purchase of such Bonds by the Credit Facility Provider, or providing funds for the purchase of such Bonds by the Issuer. In connection therewith the Issuer shall enter into Credit Facility Agreements with such Credit Facility Providers providing for, among other things, (i) the payment of fees and expenses to such Credit Facility Providers for the issuance of such Credit Facilities; (ii) the terms and conditions of such Credit Facilities and the Bonds affected thereby; and (iii) the security, if any, to be provided for the issuance of such Credit Facilities. The Issuer may secure any Credit Facility by an agreement providing for the purchase of the Bonds secured thereby with such adjustments to the rate of interest, method of determining interest, maturity, or redemption provisions as are specified by the Issuer in the applicable Series Resolution. The Issuer may in a Credit Facility Agreement agree to directly reimburse such Credit Facility Provider for amounts paid under the terms of such Credit Facility, together with interest thereon; provided, however, that no Reimbursement Obligation shall be created for purposes of the Series Resolution until amounts are paid under such Credit Facility. Any such Reimbursement Obligation shall be deemed to be a part of the Bonds to which the Credit Facility relates which gave rise to such Reimbursement Obligation, and references to Principal and interest payments with respect to such Bonds shall include Principal and interest due on the Reimbursement Obligation incurred as a result of payment of such Bonds with the Credit Facility. Any such Credit Facility shall be for the benefit of and secure such Bonds or portion thereof as specified in the applicable Series Resolution. ARTICLE IX DISCHARGE AND SATISFACTION Section 9.1. Discharge and Satisfaction of Bonds . The covenants, liens and pledges entered into, created or imposed pursuant to this Resolution or any Series Resolution may be fully discharged and satisfied with respect to the Bonds authorized thereunder, or any of them, in any one or more of the following ways: (a) By paying the said Bonds when the same shall become due and payable; and (b) By depositing in trust with the Treasurer, or with a corporate trustee designated by the Governing Body for the payment of said Bonds and irrevocably appropriated exclusively to that purpose an amount in cash or Government Obligations the maturities and income of which shall be sufficient to retire at maturity, or by redemption prior to maturity on a designated date upon which said Bonds may be redeemed, all of such Bonds Outstanding at the time, together with the interest thereon to maturity or to the designated redemption date, premiums thereon, if any that may be payable on the redemption of the same; provided that proper notice of redemption of all such obligations to be redeemed shall have been previously published or provisions shall have been made for such publication. Upon such payment or deposit of money or securities, or both, in the amount and manner provided by this Section, all liability of the Issuer with respect to such Bonds shall cease, determine and be completely discharged, and the holders thereof shall be entitled only to payment out of the money or securities so deposited. ARTICLE X EVENTS OF DEFAULT AND REMEDIES Section 10.1. Events of Default . An Event of Default is one or more of the following: (a) A default shall be made in the due and punctual payment of the principal or redemption price of any Bond when and as the same shall become due and payable, 35 whether at maturity or by call or proceedings for redemption, or otherwise; (b) A default shall be made in the due and punctual payment of any installment of interest on any Bond when and as such interest installment shall become due and payable; (c) A default shall be made by the Issuer in the performance or observance of any other of the covenants, agreements or conditions on its part in the Series Resolution or in the Bonds contained, and such default shall have continued for a period of 90 days after written notice specifying such default and requiring that it shall have been remedied is given to the Issuer by the owners of not less than 25% in principal amount of the Bonds Outstanding; provided that, if such failure cannot be corrected within such 90 day period, it shall not constitute an Event of Default if corrective action is instituted within such period and such corrective action is diligently pursued until the failure is corrected, provided that if such corrective action includes legal action such legal action shall be diligently pursued until either the failure is corrected or such failure shall be determined by a court of final and competent jurisdiction as not correctable as a matter of law. Section 10.2. Default and Remedies . In the event of (a) a default on the part of the Issuer in the prompt and full payment of principal of or interest on any Bond, or (b) a default in the keeping of any other covenant herein contained (if such default shall continue for a period of ninety days after written notice specifying the nature of the default and requiring it to be remedied is received by the Issuer), the holders of the Bonds shall have the right to proceed at law or in equity by suit, action or mandamus to enforce and compel performance of the duties required by the terms of the Resolution authorizing the issuance of the Bonds, or to obtain the appointment of a receiver to take possession of and operate the System, and to perform the duties required by the terms of the Resolution. The holders of the Bonds shall have no right to accelerate any payment obligation of the Issuer with respect to the Bonds. No holder of any Bond shall have the right to institute any proceeding, judicial or otherwise, for the enforcement of the covenants herein contained, except as provided in this Section. The holders of not less than 25% in principal amount of the Outstanding Bonds shall have the right, either at law or in equity, through suit, action or other proceedings, to protest and enforce the rights of all holders of such Bonds and to compel the performance of any and all of the covenants required herein to be performed by the Issuer, and its officers and employees, including but not limited to the fixing and maintaining of rates, fees and charges and the collection and proper segregation of Net Revenues and the application and use thereof. The holders of a majority in principal amount of Outstanding Bonds shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Bondholders or the exercise of any power conferred on them and the right to waive a default in the performance of any such covenant, and its consequences, except a default in the payment of the principal of or interest on any Bond when due. Nothing herein, however, shall impair the absolute and unconditional right of the holder of each Bond to receive payment of the principal of, premium, if any, and interest on such Bond as such principal, premium and interest respectively become due, and to institute suit for any such payment. Section 10.3. Resolution a Contract . The provisions of this Resolution shall constitute a contract between the Issuer and the holder or holders of the Bonds, and after the issuance of any of the Bonds no change, variation or alteration of any kind in the provisions of this Resolution shall be made in any manner, except as provided in Article XI, until such time as all of the Bonds, and interest due thereon, shall have been satisfied and discharged as provided in this Resolution. ARTICLE XI SUPPLEMENTAL RESOLUTIONS 36 Section 11.1. Amendment of Resolution Without Consent . The Issuer may, without the consent of or notice to any of the holders of the Bonds, approve one or more Supplemental Resolutions, which thereafter shall form a part of this Resolution, for any one or more of the following purposes: (a) to cure any ambiguity, defect, omission or inconsistent provision in this Resolution or in the Bonds; or to comply with any applicable provision of law or regulation of federal or state agencies; provided, however, that such action shall not materially adversely affect the interests of the holders of the Bonds; (b) to change the terms or provisions of this Resolution to the extent necessary to prevent the interest on the Bonds from being includable within the gross income of the holders thereof for federal income tax purposes; (c) to grant to or confer upon the holders of the Bonds any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the holders of the Bonds; (d) to add to the covenants and agreements of the Issuer contained in this Resolution other covenants and agreements of, or conditions or restrictions upon, the Issuer or to surrender or eliminate any right or power reserved to or conferred upon the Issuer in this Resolution; (e) To subject to the lien and pledge of this Resolution additional Net Revenues as may be permitted by law; (f) To modify any of the provisions of the Resolution in any respect if such modification shall not become effective until after the Bonds Outstanding immediately prior to the effective date of such Supplemental Resolution shall cease to be Outstanding and if any Bonds issued contemporaneously with or after the effective date of such Supplemental Resolution shall contain a specific reference to the modifications contained in such subsequent proceedings; (g) To modify the Resolution to provide for the issuance of Senior Bonds or Subordinate Bonds, and such modification may deal with any subjects and make any provisions which the Issuer deems necessary or desirable for that purpose; (h) To modify any of the provisions of the Resolution in any respect (other than a modification of the type described in Section 11.2 requiring the consent of the Bondholders); provided that for (i) any Outstanding Bonds which are assigned a Rating and which are not secured by a Credit Facility providing for the payment of the full amount of Principal and interest to be paid thereon, each Rating Agency shall have given written notification to the Issuer that such modification will not cause the then applicable Rating on any Bonds to be reduced or withdrawn, and (ii) any Outstanding Bonds which are secured by Credit Facilities providing for the payment of the full amount of the Principal and interest to be paid thereon, each Credit Facility Provider shall have consented in writing to such modification. Section 11.2. Amendment of Resolution Requiring Consent . The Issuer also may approve one or more Supplemental Resolutions, which thereafter shall form a part of this Resolution, if such Supplement Resolution shall have been consented to by holders of not less than two-thirds (2/3) in principal amount of the Bonds at any time Outstanding (not including in any case any Bonds which may then be held or owned by or for the account of the Issuer, but including such refunding Bonds as may have been issued for the purpose of refunding any of such Bonds if such refunding Bonds shall not then be owned by the Issuer); but this Resolution may not be so amended in such manner as to: (a) Make any change in the maturity or interest rate of the Bonds, or modify the terms of payment of Principal of or interest on the Bonds or any of them or impose any 37 conditions with respect to such payment; (b) Materially affect the rights of the holders of less than all of the Bonds then Outstanding; and (c) Reduce the percentage of the Principal amount of Bonds, the consent of the holders of which is required to effect a further amendment; in each case without the consent of the owners of all of the affected Bonds then Outstanding. Whenever the Issuer shall propose to amend this Resolution under the provisions of this Section, it shall cause notice of the Supplemental Resolution to be filed with the Original Purchaser and to be mailed by certified mail to each registered owner of any Bond as shown by the records of the Registrar. Such notice shall set forth the nature of the proposed amendment and shall state that a copy of the proposed Supplemental Resolution is on file in the office of the City Clerk. Whenever at any time within one year from the date of the mailing of said notice there shall be filed with the City Clerk an instrument or instruments executed by the holders of at least two-thirds in aggregate principal amount of the Bonds then outstanding as in this Section defined, which instrument or instruments shall refer to the proposed Supplemental Resolution described in said notice and shall specifically consent to and approve the adoption thereof, thereupon, but not otherwise, the Governing Body of the Issuer may adopt such Supplemental Resolution and such Supplemental Resolution shall become effective and binding upon the holders of all of the Bonds. Any consent given by the holder of a Bond pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the instrument evidencing such consent and shall be conclusive and binding upon all future holders of the same Bond during such period. Such consent may be revoked at any time after six months from the date of such instrument by the holder who gave such consent or by a successor in title by filing notice of such revocation with the City Clerk. The fact and date of the execution of any instrument under the provisions of this Section may be proved by the certificate of any officer in any jurisdiction who by the laws thereof is authorized to take acknowledgments of deeds within such jurisdiction that the person signing such instrument acknowledged before him the execution thereof, or may be proved by an affidavit of a witness to such execution sworn to before such officer. The amount and numbers of the Bonds held by any person executing such instrument and the date of his holding the same may be proved by an affidavit by such person or by a certificate executed by an officer of a bank or trust company showing that on the date therein mentioned such person had on deposit with such bank or trust company the Bonds described in such certificate. ARTICLE XII MISCELLANEOUS PROVISIONS Section 12.1. Severability . If any section, paragraph, or provision of this Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions. Section 12.2. Repeal of Conflicting Ordinances or Resolutions and Effective Date . All other ordinances, resolutions and orders, or parts thereof, in conflict with the provisions of this Resolution are, to the extent of such conflict, hereby repealed; and this Resolution shall be in effect from and after its adoption. Section 12.3. Rule of Construction . This Resolution and the terms and conditions of the Series 2009A Bonds authorized hereby shall be construed whenever possible so as not to conflict with the terms and conditions of the Loan and Disbursement Agreement. In the event 38 such construction is not possible, or in the event of any conflict or inconsistency between the terms hereof and those of the Loan and Disbursement Agreement, the terms of the Loan and Disbursement Agreement shall prevail and be given effect to the extent necessary to resolve any such conflict or inconsistency. th Passed and approved this 15 day of December, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk Donation of Firefighter Gear: City Manager recommending approval of the donation of firefighter gear to firefighters in the Philippines. Upon motion the documents were received, filed, and approved. U.S. Conference of Mayors: Communication from the U.S. Conference of Mayors advising that the City has received a Best Practice Award for our lead safety efforts. Upon motion the document was received and filed. Business License Refunds Diamond Jo, LLC requesting a refund of Cigarette License No. DBQ-037 in the amount of $50.00. David Wetter, Club Phoenix, requesting a refund of Beer/Wine/Liquor License #LC0035579 in the amount of $422.50. Upon motion the documents were received and filed and the refunds approved. Business License Applications: City Manager recommending approval of annual liquor license renewals as submitted. Upon motion the documents were received and filed and Resolution No. 438-08 Granting the issuance of one new license to sell cigarettes to Diamond Jo Casino and Resolution No. 439-08 Granting the issuance of a Class “B” (Hotel/Motel) Liquor License to Holiday Inn Five Flags; Class “C” Beer/Liquor License to The White House, Mario’s Italian Restaurant, Pepper Sprouts, Bowling and Beyond, The Moracco, Cue Masters Billiards, and Instant Replay; a Class “B” Wine Permit to Diamond Jo, LLC; and a Class “WBN” (Native Wine) Permit to Engraved Gift Collection were adopted. RESOLUTION NO. 438-08 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: That the following having complied with the provisions of law relating to the sale of Cigarettes within the City of Dubuque, Iowa, be granted a permit to sell Cigarettes and Cigarette Papers within said City. Diamond Jo Casino Diamond Jo, LLC 301 Bell Street th Passed, approved and adopted this 15 day of December, 2008 Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk RESOLUTION NO. 439-08 Whereas, applications for Liquor Licenses have been submitted to this Council for approval and the same have been examined and approved; and Whereas, the premises to be occupied by such applicants were inspected and found to comply with the State Laws and all City Ordinances relevant thereto and they have filed proper bonds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 39 DUBUQUE, IOWA: That the Manager be authorized to cause to be issued the following named applicants a Liquor License. CLASS “B” (HOTEL/MOTEL) LIQUOR LICENSE Kinseth Hotel Corporation Holiday Inn Five Flags+(Sunday Sale) 450 Main Street CLASS “C” BEER/LIQUOR LICENSE Mary A. Hoffman The White House 450 W Locust Street T & M, Inc. Mario’s Italian Restaurant 1298 Main Street +(Sunday Sale) Pepper Sprout, Inc. Pepper Sprout+(Sunday Sale) 378 Main Street Bowling & Beyond Bowling & Beyond DBQ 1860 Hawthorne Street Dubuque +(Sunday/Outdoor Sale) The Moracco, Inc. The Moracco+(Sunday Sale) 1413 Rockdale Cue Masters Billiards, Inc. Cue Masters Billiards 900 Central Avenue +(Sunday Sale) Pamela Barry Arensdorf Instant Replay +(Sunday Sale) 1602 Central Avenue CLASS “B” WINE Diamond Jo, LLC Diamond Jo Casino 301 Bell Street CLASS “WBN” (NATIVE WINE) PERMIT Woodline, Inc. Engraved Gift Collection 962 Main Street Passed, approved and adopted this 15th day of December, 2008 Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk BOARDS/COMMISSIONS Applicants were invited to address the City Council regarding their desire to serve on the following Boards/Commissions: Housing Code Appeals Board: Two 3-year terms through January 11, 2012 (Terms of Durley and Newman). Applicants: Fred Miller, 2462 Central Avenue; and Paul Newman, 1895 Central Avenue, #3. Mr. Miller spoke in support of his appointment. Appointments to the following Boards/Commissions: Historic Preservation Commission – Langworthy District Interim Commissioner: One 4-year term through July 1, 2011 (Term of Cleek). Applicant: Eli Licht, 1759 Vizaleea Drive. Motion by Lynch to appoint Eli Licht to the Historic Preservation Commission as an Interim Commissioner for the Langworthy Historic District for a 4-year term through July 1, 2011. Seconded by Connors. Motion carried 7-0. Human Rights Commission: Three 3-year terms through January 1, 2012 (Terms of Allen, Wilberding, Vanden Heuvel). Applicants: Anthony Allen, 575 Almond Street; Terry Driskell, 249 York Street; and Katrina Wilberding, 3715 Asbury Road. Motion by Jones to appoint Anthony Allen and Katrina Wilberding to the Human Rights Commission for 3-year terms through January 1, 2012. Seconded by Voetberg. Jones stated that it is important for applicants who are unknown to the City Council be present for the interview portion of the appointment process. Voetberg concurred with Jones. Connors stated that many applicants are appointed without coming forward to introduce themselves and asked the City Clerk’s Office to use stronger language when informing applicants to be present. Motion carried 5-2 with Connors and Lynch voting nay. Motion by Connors to appoint Terry Driskell to the Human Rights Commission for a 3-year term through January 1, 2012. Seconded by Resnick. Motion carried 4-2 with Voetberg and 40 Braig voting nay and Jones voting present. Mediacom Charitable Foundation: Two 1-year terms through December 31, 2009 (Terms of Chavenelle and Twining). Applicants: Gail Chavenelle, 1155 Kelly Lane; and Connie Twining, 421 North Booth Street. Motion by Braig to appoint Gail Chavenelle and Connie Twining to the Mediacom Charitable Foundation for 1-year terms through December 31, 2009. Seconded by Connors. Motion carried 7-0. Transit Board of Trustees: One 3-year term through July 30, 2011 (Term of Davidson): Applicant: John Curtis, 1951 Alta Vista. Motion by Jones to appoint John Curtis to the Transit Board of Trustees for a 3-year term through July 30, 2011. Seconded by Braig. Motion carried 7-0. PUBLIC HEARINGS Upon motion the rules were suspended to allow anyone present to address the City Council. Request to Rezone – 6255 Pennsylvania Avenue: Proof of publication on notice of public hearing to consider a request from Dave and Tim Blake to rezone property located at 6255 Pennsylvania Avenue (west of Heacock Road and north of Pennsylvania Avenue) from AG Agricultural to AG Agricultural District with a RROD Rural Residential Overlay Designation and Zoning Advisory Commission recommending approval. Motion by Lynch to receive and file the documents and that the requirement that a proposed ordinance be considered and voted on for passage at two Council meetings prior to the meeting at which it is to be passed be suspended. Seconded by Connors. Motion carried 7-0. Motion by Lynch for final consideration and passage of Ordinance No. 80-08 Amending Appendix A (the Zoning Ordinance) of the City of Dubuque Code of Ordinances by reclassifying hereinafter described property located at the northwest corner of Middle Road and Heacock Road from AG Agricultural District to AG Agricultural District with a Rural Residential Overlay District Designation. Seconded by Jones. Motion carried 7-0. OFFICIAL PUBLICATION ORDINANCE NO. 80-08 AN ORDINANCE AMENDING APPENDIX A (THE ZONING ORDINANCE) OF THE CITY OF DUBUQUE CODE OF ORDINANCES BY RECLASSIFYING HEREINAFTER DESCRIBED PROPERTY LOCATED AT THE NORTHWEST CORNER OF MIDDLE ROAD AND HEACOCK ROAD FROM AG AGRICULTURAL DISTRICT TO AG AGRICULTURAL DISTRICT WITH AN RROD RURAL RESIDENTIAL DISTRICT OVERLAY DISTRICT DESIGNATION. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That Appendix A (The Zoning Ordinance) of the City of Dubuque Code of Ordinances is hereby amended by reclassifying the hereinafter-described property from AG Agricultural District to AG Agricultural District with an RROD Rural Residential Overlay District Designation, to wit: Lot 1 SE ¼ SE ¼ Section 19 T89N R2E, and to the centerline of the adjoining public right-of-way, all in the City of Dubuque, Iowa. Section 2. The foregoing amendment has heretofore been reviewed by the Zoning Advisory Commission of the City of Dubuque, Iowa. Section 3. This ordinance shall take effect immediately upon publication, as provided by law. 41 th Passed, approved and adopted this 15 day of December, 2008. /s/Roy D. Buol, Mayor Attest: /s/Jeanne F. Schneider, CMC, City Clerk th Published officially in the Telegraph Herald Newspaper the 20 day of December, 2008. /s/Jeanne F. Schneider, CMC, City Clerk REINSTATE THE RULES Upon motion the rules were reinstated limiting discussion to the City Council. ACTION ITEMS Alley at St. Anthony’s School: City Manager recommending that the City plow and de-ice the alley that connects St. Ambrose Street and Grandview Avenue through the St. Anthony’s property as a safety precaution. Motion by Voetberg to receive and file the documents and approve the recommendation. Seconded by Connors. Motion carried 7-0. Renaming of David Court: Zoning Advisory Commission recommending approval of the renaming of David Court to Peach Tree Lane as requested by the City of Dubuque. Motion by Lynch to receive and file the documents and that the requirement that a proposed ordinance be considered and voted on for passage at two Council meetings prior to the meeting at which it is to be passed be suspended. Seconded by Connors. Motion carried 7-0. Motion by Lynch for final consideration and passage of Ordinance No. 81-08 Renaming the street currently named David Court to Peach Tree Lane. Seconded by Connors. Motion carried 7-0. OFFICIAL PUBLICATION ORDINANCE NO. 81-08 AN ORDINANCE RENAMING THE STREET CURRENTLY NAMED DAVID COURT TO PEACH TREE LANE Whereas, the City Council desires to rename David Court to correspond to the requested name of the extension of said roadway; and Whereas, the request has been reviewed by the Zoning Advisory Commission; and Whereas, the City Council desires to rename the current David Court as Peach Tree Lane. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the street currently known as David Court be renamed Peach Tree Lane. Section 2. The foregoing street name change has heretofore been reviewed by the Zoning Advisory Commission of the City of Dubuque, Iowa. Section 3. That the Mayor and City Clerk are hereby authorized and directed to endorse the approval of the City of Dubuque, Iowa upon such street name, and to file notice of the renaming of said street with the Recorder, Auditor and City Assessor of Dubuque County, Iowa. th Passed, approved and adopted this 15 day of December, 2008. /s/Roy D. Buol, Mayor Attest: /s/Jeanne F. Schneider, CMC, City Clerk th Published officially in the Telegraph Herald Newspaper the 20 day of December, 2008. /s/Jeanne F. Schneider, CMC, City Clerk 42 Community Foundation (Project HOPE) Contract: City Manager recommending approval of an amendment to the contract for services with the Community Foundation of Greater Dubuque for services relating to Project HOPE which extends the termination date until June 30, 2009, and modifies the scope of work. Motion by Connors to receive and file the documents and approve the recommendation. Seconded by Braig. Motion carried 7-0. Fiscal Year 2010 Budget Policy Guidelines: City Manager recommending approval of the Budget Policy Guidelines for Fiscal Year 2010. Motion by Braig to receive and file the documents and approve the recommendation. Seconded by Voetberg. Jones objected to Guideline #10. Lynch congratulated staff on a fantastic job. Motion carried 7-0. COUNCIL MEMBER REPORTS Braig inquired as to the status of the Trailways Bus Depot issue. Van Milligen stated that the City is looking at options at the Keyline Transit Office as well as exploring alternative locations. He stated that a transition period may be needed. Resnick stated that he has obtained a quantity of information regarding green roofs like the one recently approved for the fire station. He said the technology is unique and it is the right thing to do. CLOSED SESSION Motion by Lynch to go into closed session at 7:16 p.m. regarding pending litigation and property acquisition pursuant to Chapter 21.5(1)(c)(j) 2007 Code of Iowa. Seconded by Voetberg. Motion carried 7-0. Upon motion the City Council reconvened in open session at 7:39 p.m. stating that staff had been given proper direction. There being no further business, upon motion the City Council adjourned at 7:40 p.m. /s/Jeanne F. Schneider, CMC City Clerk 43