Issuance of Not to Exceed $1,950,000 Sanitary Sewer Revenue Capital Loan Notes (State of Iowa - Water Quality Financing Program)_InitiateCity of Dubuque
City Council Meeting
Copyrighted
April 18, 2022
Items to be set for Public Hearing # 3.
ITEM TITLE: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$1,950,000, Sanitary Sewer Revenue Capital Loan Notes (State of Iowa
— Water Quality Financing Program)
SUMMARY: City Manager recommending that a public hearing be set for May 2,
2022, on the proposition of selling not to exceed $1,950,000 in Sanitary
Sewer Revenue Capital Loan Notes, State of Iowa Water Quality
Financing Program, the proceeds of which will be used to pay
construction costs for the stabilization of approximately 3,000 feet of the
City's 42-inch diameter sanitary sewer force main that runs along the main
channel of the Mississippi River from Maus Lake to the south.
SUGGESTED
DISPOSITION:
ATTACHMENTS:
Description
MVM Memo
RESOLUTION Fixing date for a meeting on the authorization of a Loan
and Disbursement Agreement and the issuance of not to exceed
$1,950,000 Sewer Revenue Capital Loan Notes of the City of Dubuque,
State of Iowa, and providing for publication of notice thereof
Receive and File; Adopt Resolution(s), Set Public Hearing for May 2,
2022Suggested Disposition:
Staff Memo
Resolution Fixing Date of Public Hearing
Notice of Public Hearing
Bond Counsel Letter
Type
City Manager Memo
Staff Memo
Resolutions
Supporting Documentation
Supporting Documentation
THE CITY OF
Dubuque
D U i/ R F
L
All -America City
wtix`v ?x u_a
Masterpiece2-2013
on the Mississippi
200
2017*2019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $1,950,000,
Sanitary Sewer Revenue Capital Loan Notes (State of Iowa — Water Quality
Financing Program)
DATE: April 9, 2022
Director of Finance and Budget Jennifer Larson recommends that a public hearing be set for
May 2, 2022, on the proposition of selling not to exceed $1,950,000 in Sanitary Sewer Revenue
Capital Loan Notes, State of Iowa Water Quality Financing Program, the proceeds of which will
be used to pay construction costs for the stabilization of approximately 3,000 feet of the City's
42-inch diameter sanitary sewer force main that runs along the main channel of the Mississippi
River from Maus Lake to the south. The project includes reconstruction of the river
embankment so that there is adequate cover and protection from the river and debris floating
along the reiver. It will also provide protection from river barges that travel up and down the
river, sometimes tying off in areas where the existing force main is exposed.
The project will be done by the U.S. Army Corps of Engineers (USACE) through their
Emergency Streambank Repair and Shoreline Protection program (Section 14 of the Flood
Control Act of 1946). Through that program, USACE will design and construct the
improvements. The USACE began the Planning Design Analysis (PDA) in FY21. The USACE
covers the initial $100,000. Any cost above that amount is shared 50/50. The City budgeted
$100,000 in FY21 to cover its share of PDA costs. The City's share of construction cost will be
35% of the total cost and it is due to the USACE up front, prior to construction.
I concur with the recommendation and respectfully request Mayor and City Council approval.
AAlka k�4
Mich el C. Van Milligen
MCVM/jml
Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Director of Finance and Budget
Gus Psihoyos, City Engineer
Deron Muehring, Civil Engineer
THE C
DUUB-.'&-FE
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manger
Dubuque
All-AmericaCity
2007-2012.2013
2017*2019
FROM: Jennifer Larson, Director of Finance and Budget
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$1,950,000, Sanitary Sewer Revenue Capital Loan Notes (State of Iowa —
Water Quality Financing Program)
DATE: April 9, 2022
INTRODUCTION:
The purpose of this memorandum is to recommend setting of a public hearing on the
issuance of not to exceed $1,950,000 Sanitary Sewer Revenue Capital Loan Notes, State
of Iowa Water Quality Financing Program (WQFP). A letter from attorney Kristin Cooper
detailing information on setting the public hearing is enclosed.
DISCUSSION
The State of Iowa Water Quality Financing Program was created in 2018 as a revolving
fund to finance projects that improve water quality. Priority is given to projects that are
collaborative efforts. Projects can address either point of source or nonpoint source water
quality issues. Eligible applicants include municipalities, landowners, public utilities, rural
water districts and industries that are required by the Nutrient Reduction Strategy to collect
data and evaluate alternatives to reduce discharges of nitrogen and phosphorus.
WQFP loans have a 2% loan initiation fee, 1 % interest rate, no loan servicing fee, and can
be issued as revenue debt. In addition, WQFP loans do not require an environmental
review because the program is state funded.
The $1,950,000 in loan proceeds would be used to fund the stabilization of approximately
3,000 feet of the City's 42-inch diameter sanitary sewer force main that runs along the
main channel of the Mississippi River from Maus Lake to the south. The City's 42-inch
diameter sanitary sewer force main was constructed in 1977 with about 3,000 feet located
along the banks along the Mississippi River. It carries approximately 80% of the City's
daily average flows to the Water and Resource Recovery Center. Over the years, erosion
of the banks of the Mississippi River have reduced the ground cover and protection to the
point where the pipe is showing in a few places. Because the flow is under pressure, if the
force main ruptured, it would result in the discharge of thousands of gallons of untreated
wastewater directly into the Mississippi River. The work entails the reconstruction of the
river embankment so that there is adequate cover and protection from the river and debris
floating along the reiver. It will also provide protection from river barges that travel up and
down the river, sometimes tying off in areas where the existing force main is exposed. The
project will be done by the U.S. Army Corps of Engineers (USACE) through their
Emergency Streambank Repair and Shoreline Protection program (Section 14 of the Flood
Control Act of 1946). Through that program, USACE will design and construct the
improvements. The USACE began the Planning Design Analysis (PDA) in FY21. The
USACE covers the initial $100,000. Any cost above that amount is shared 5050. The City
budgeted $100,000 in FY21 to cover its share of PDA costs. The City's share of
construction cost will be 35% of the total cost and it is due to the USACE up front, prior to
construction.
The issuance of State of Iowa Water Quality Financing Program loans instead of State
Revolving Fund Loans will save approximately $174,000 over the life of the debt in interest
and loan serving fee costs.
ACTION TO BE TAKEN
I respectfully recommend the public hearing be set for May 2, 2022 and approval of the
resolutions.
Attachments
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Gus Psihoyos, City Engineer
Deron Muehring, Civil Engineer
ITEMS TO INCLUDE ON AGENDA
CITY OF DUBUQUE, IOWA
Not to exceed $1,950,000 Sewer Revenue Capital Loan Notes (Water Quality Financing
Program)
Resolution fixing date for a meeting on the proposition to authorize a Loan and
Disbursement Agreement and the issuance of Notes to evidence the obligations of the
City thereunder.
NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE
CHAPTER 21 AND THE LOCAL RULES OF THE CITY.
- 1 -
April 18, 2022
The City Council of the City of Dubuque, State of Iowa, met in regular session, in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 P.M., on the above date.
There were present Mayor Cavanagh, in the chair, and the following named Council Members:
Farber, Jones, Resnick, Roussell, Sprank, Wethal
Absent: ___________________________________________
Vacant: ___________________________________________
* * * * * * *
- 2 -
Council Member Roussell introduced the following Resolution entitled "RESOLUTION
FIXING DATE FOR A MEETING ON THE AUTHORIZATION OF A LOAN AND
DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $1,950,000
SEWER REVENUE CAPITAL LOAN NOTES OF THE CITY OF DUBUQUE, STATE OF
IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF", and moved that the
same be adopted. Council Member Sprank seconded the motion to adopt. The roll was called
and the vote was,
AYES: Sprank, Roussell, Jones, Wethal, Cavanagh, Resnick,
Farber
___________________________________________
NAYS: ___________________________________________
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 138-22
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AND DISBURSEMENT
AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED
$1,950,000 SEWER REVENUE CAPITAL LOAN NOTES OF
THE CITY OF DUBUQUE, STATE OF IOWA, AND
PROVIDING FOR PUBLICATION OF NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque, State of
Iowa, should provide for the authorization of a Loan and Disbursement Agreement and the
issuance of Sewer Revenue Capital Loan Notes, to the amount of not to exceed $1,950,000, as
authorized by Sections 384.24A and 384.83, of the Code of Iowa, for the purpose of providing
funds to pay costs of carrying out project(s) as hereinafter described; and
WHEREAS, the City has applied for a loan through the Iowa Water Quality Financing
Program pursuant to which the Iowa Finance Authority has agreed to purchase the City’s Notes
and has requested that such Notes be issued as a single Note in a denomination equal to the total
amount of the issue as authorized by Chapter 384 of the Code of Iowa; and
WHEREAS, the Loan and Disbursement Agreement and Notes shall be payable solely
and only out of the Net Revenues of the Municipal Sewer Utility and shall be a first lien on the
future Net Revenues of the Utility; and shall not be general obligations of the City or payable in
any manner by taxation and the City shall be in no manner liable by reason of the failure of the
Net Revenues to be sufficient for the payment of the Loan and Disbursement Agreement and
Notes; and
- 3 -
WHEREAS, before the Loan and Disbursement Agreement and Notes may be issued, it
is necessary to comply with the provisions of the Code, and to publish a notice of the proposal to
issue such notes and of the time and place of the meeting at which the Council proposes to take
action for the authorization of the Loan and Disbursement Agreement and Notes and to receive
oral and/or written objections from any resident or property owner of the City to such action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, STATE OF IOWA:
Section 1. That this Council meet in the Historic Federal Building, 350 West 6th Street,
Dubuque, Iowa, at 6:30 P.M., on the 2nd day of May, 2022, for the purpose of taking action on
the matter of the authorization of a Loan and Disbursement Agreement and the issuance of not to
exceed $1,950,000 Sewer Revenue Capital Loan Notes, the proceeds of which notes will be used
to provide funds to pay the costs of the acquisition, construction, reconstruction, extending,
remodeling, improving, repairing and equipping all or part of the Municipal Sewer Utility,
including those costs associated with force main stabilization improvements.
Section 2. That the Clerk is hereby directed to cause at least one publication to be made
of a notice of the meeting, in a legal newspaper, printed wholly in the English language,
published at least once weekly, and having general circulation in the City. The publication to be
not less than four clear days nor more than twenty days before the date of the public meeting on
the issuance of the Notes.
Section 3. The notice of the proposed action to issue notes shall be in substantially the
following form:
(To be published between April 12, 2022 and April 27, 2022)
NOTICE OF MEETING OF THE CITY COUNCIL OF THE
CITY OF DUBUQUE, STATE OF IOWA, ON THE MATTER
OF THE PROPOSED AUTHORIZATION OF A LOAN AND
DISBURSEMENT AGREEMENT AND THE ISSUANCE OF
NOT TO EXCEED $1,950,000 SEWER REVENUE CAPITAL
LOAN NOTES, AND THE HEARING ON THE ISSUANCE
THEREOF
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, State of
Iowa, will hold a public hearing on the 2nd day of May, 2022, at .M., in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at which meeting the Council
proposes to take additional action for the authorization of a Loan and Disbursement Agreement
by and between the City and the Iowa Finance Authority and the issuance to the Iowa Finance
Authority of not to exceed $1,950,000 Sewer Revenue Capital Loan Notes, to evidence the
obligations of the City under the said Loan and Disbursement Agreement, in order to provide
funds to pay the costs of the acquisition, construction, reconstruction, extending, remodeling,
improving, repairing and equipping all or part of the Municipal Sewer Utility, including those
costs associated with force main stabilization improvements. The Notes will not constitute
general obligations or be payable in any manner by taxation, but will be payable from and
secured by the Net Revenues of the Municipal Sewer Utility.
At the above meeting the Council shall receive oral or written objections from any
resident or property owner of the City to the above action. After all objections have been
received and considered, the Council will at the meeting or at any adjournment thereof, take
additional action for the authorization of a Loan and Disbursement Agreement and the issuance
of the Notes to evidence the obligation of the City thereunder or will abandon the proposal to
issue said Notes.
This notice is given by order of the City Council of the City of Dubuque, State of Iowa,
as provided by Sections 384.24A and 384.83 of the Code of Iowa.
Dated this day of 12022.
City Clerk, City of Dubuque, State of Iowa
(End of Notice)
PASSED AND APPROVED this 18`h day of April, 2022.
Mayor
ATTEST:
City Clerk
-5-
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this 3 rd day of
m', 2022. Ak, 1
City Clerk, City of Dubuque, State of Iowa
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
I, the undersigned, do hereby certify that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of the
City, I have caused a
NOTICE OF PUBLIC HEARING
(Not to Exceed $1,950,000 Sewer Revenue Capital Loan Notes)
of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures
a correct and complete copy, to be published as required by law in the Telegraph Herald, a legal
newspaper published at least once weekly, printed wholly in the English language, published
regularly and mailed through the post office of current entry for more than two years and which
has had for more than two years a bona fide paid circulation recognized by the postal laws of the
United States, and has a general circulation in the City, and that the Notice was published in all
of the issues thereof published and circulated on the following date:
APrl l as 2022.
WITNESS my official signature this j rd day of y 2022.
City Clerk, City of Dubuque, State of Iowa
02034345-1\10422-225
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
04/22/2022
and for which the charge is 35.55
bscribed to before me, a Notary Pb li in and for
Dubuque County, Iowa,
this 25th day of April, 2022
Notary Pu U
n and for Dubuque Cou ty, Iowa.
JA.NET K. PAPE
Commission Number 199559
I-e-t;7t jMyComm.Exp.DEC11,2022
Ad text : CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, STATE OF IOWA, ON THE MATTER OF THE PROPOSED
AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE
ISSUANCE OF NOT TO EXCEED $1,950,000 SEWER REVENUE CAPITAL
LOAN NOTES, AND THE HEARING ON THE ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the City Council of the
City of Dubuque, State of Iowa, will hold a public hearing on
the 2nd day of May, 2022, at 6:30 P.M., in the Historic
Federal Building, 350 West 6th Street, Dubuque, Iowa, at which
meeting the Council proposes to take additional action for the
authorization of a Loan and Disbursement Agreement by and
between the City and the Iowa Finance Authority and the
issuance to the Iowa Finance Authority of not to exceed
$1,950,000 Sewer Revenue Capital Loan Notes, to evidence the
obligations of the City under the said Loan and Disbursement
Agreement, in order to provide funds to pay the costs of the
acquisition, construction, reconstruction, extending,
remodeling, improving, repairing and equipping all or part of
the Municipal Sewer Utility, including those costs associated
with force main stabilization improvements. The Notes will
not constitute general obligations or be payable in any manner
by taxation, but will be payable from and secured by the Net
Revenues of the Municipal Sewer Utility.
At the above meeting the Council shall receive oral or
written objections from any resident or property owner of the
City to the above action. After all objections have been
received and considered, the Council will at the meeting or at
any adjournment thereof, take additional action for the
authorization of a Loan and Disbursement Agreement and the
issuance of the Notes to evidence the obligation of the City
thereunder or will abandon the proposal to issue said Notes.
This notice is given by order of the City Council of the
City of Dubuque, State of Iowa, as provided by Sections
384.24A and 384.83 of the Code of Iowa.
Dated this 22nd day of April, 2022.
Adrienne N. Breitfelder
City Clerk, City of Dubuque, State of Iowa
It 4/22
(To be published between April 12, 2022 and April 27, 2022)
NOTICE OF MEETING OF THE CITY COUNCIL OF THE
CITY OF DUBUQUE, STATE OF IOWA, ON THE MATTER
OF THE PROPOSED AUTHORIZATION OF A LOAN AND
DISBURSEMENT AGREEMENT AND THE ISSUANCE OF
NOT TO EXCEED $1,950,000 SEWER REVENUE CAPITAL
LOAN NOTES, AND THE HEARING ON THE ISSUANCE
THEREOF
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, State of
Iowa, will hold a public hearing on the 2nd day of May, 2022, at .M., in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at which meeting the Council
proposes to take additional action for the authorization of a Loan and Disbursement Agreement
by and between the City and the Iowa Finance Authority and the issuance to the Iowa Finance
Authority of not to exceed $1,950,000 Sewer Revenue Capital Loan Notes, to evidence the
obligations of the City under the said Loan and Disbursement Agreement, in order to provide
funds to pay the costs of the acquisition, construction, reconstruction, extending, remodeling,
improving, repairing and equipping all or part of the Municipal Sewer Utility, including those
costs associated with force main stabilization improvements. The Notes will not constitute
general obligations or be payable in any manner by taxation, but will be payable from and
secured by the Net Revenues of the Municipal Sewer Utility.
At the above meeting the Council shall receive oral or written objections from any
resident or property owner of the City to the above action. After all objections have been
received and considered, the Council will at the meeting or at any adjournment thereof, take
additional action for the authorization of a Loan and Disbursement Agreement and the issuance
of the Notes to evidence the obligation of the City thereunder or will abandon the proposal to
issue said Notes.
This notice is given by order of the City Council of the City of Dubuque, State of Iowa,
as provided by Sections 384.24A and 384.83 of the Code of Iowa.
Dated this day of , 2022.
City Clerk, City of Dubuque, State of Iowa
(End of Notice)
Ahlers & Cooney, P.C.
AHLERS COONEY Attorneys at Law
100 Court Avenue, Suite 600
A T T O R N E Y S Des Moines, Iowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
April 8, 2022
VIA EMAIL
Ms. Jenny Larson
Director of Finance & Budget
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
Kristin B. Cooper
515.246.0330
kcooper@ahlerslaw.com
Re: Dubuque, Iowa - Not to Exceed $1,950,000 Sewer Revenue Capital Loan Notes
(State of Iowa — Water Quality Financing Program)
Dear Jenny:
We have now prepared and are including with this letter suggested proceedings to be
acted upon by the City Council in fixing the date of a meeting on the proposition to issue the
above mentioned Capital Loan Note and ordering publication of a notice of hearing consistent
with the provisions of Code Sections 384.24A and 384.83.
The City has chosen to borrow funds through the State of Iowa Water Quality Financing
Program. Borrowing through this program requires the same procedures applicable to the
issuance and sale of municipal bonds generally. In this instance, the Iowa Finance Authority (the
"Authority") has agreed to make the City a low -interest loan under the terms of a Loan and
Disbursement Agreement, which will be secured and evidenced by a Sewer Revenue Capital
Loan Note that will be issued to the Authority at the time the loan is closed.
Notice of this meeting must be published at least once in a legal newspaper, printed
wholly in the English language, published at least once weekly, and having general circulation in
the City. The date of publication is to be not less than four clear days nor more than twenty days
before the date of said public meeting. In computing time, the date of publication should be
excluded. If the last day falls on Sunday, the whole of the following Monday should be
excluded.
Please send us an executed copy of the proceedings for our transcript, along with the
publisher's affidavit of publication of the notice of hearing. We would also appreciate electronic
scans. If you have any questions, please do not hesitate to contact us.
WISHARD & BAILY- 1888; GUERNSEY & BAILY- 1893; BAILY & STIPP- 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER,
AHLERS & COONEY- 1950; AHLERS, COONEY, DORWEILER, ALLBEE, HAYNIE & SMITH - 1974; AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. -1990
April 8, 2022
Page 2
Very truly yours,
Ahlers & Cooney, P.C.
Kristin Billingsley Cooper
FOR THE FIRM
KBC:seb
Enclosures
cc: Adrienne N. Breitfelder, City of Dubuque (via e-mail w/enc.)
Trish Gleason, City of Dubuque (via e-mail w/enc.)
Tionna Pooler, Independent Public Advisors (via e-mail w/enc.)
Deron Muehring, City of Dubuque (via e-mail w/enc.)
02034382-1\10422-225