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Proceedings to Set Public Hearing on the Issuance of Not to Exceed $3,200,000 State Revolving Fund Sewer Revenue Loan_InitiateCity of Dubuque City Council Meeting Copyrighted January 3, 2024 Items to be set for Public Hearing # 01. ITEM TITLE: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $3,200,000, State Revolving Fund Sewer Revenue Loan SUMMARY: City Manager recommending that a public hearing be set for January 16, 2024, on the proposition of selling not to exceed $3,200,000 in State Revolving Fund Sewer Revenue Loan, the proceeds of which will be used to pay costs for Tamarack Sanitary Sewer Extension, Twin Ridge Sanitary Sewer Extension, and Granger Creek Lift Station I mprovements. RESOLUTION To fix a date for a public hearing on proposal to enter into a Sewer Revenue Loan and Disbursement Agreement and to borrow money thereunder in a principal amount not to exceed $3,200,000 SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for January DISPOSITION: 16, 2024Suggested Disposition: FIN ik[91:ILyil21zIII l+] Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Resolution Resolutions THE C DUUB-.'&-FE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Dubuque AII•Amerin City nwxnw�� Kw 2007-2012.2013 2017*2019 SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $3,200,000, State Revolving Fund Sewer Revenue Loan DATE: December 21, 2023 Chief Financial Officer Jennifer Larson recommends that a public hearing be set for January 16, 2024, on the proposition of selling not to exceed $3,200,000 in State Revolving Fund Sewer Revenue Loan, the proceeds of which will be used to pay costs for Tamarack Sanitary Sewer Extension, Twin Ridge Sanitary Sewer Extension, and Granger Creek Lift Station Improvements. I concur with the recommendation and respectfully request Mayor and City Council approval. � k�4/V;4� Michael C. Van Milligen MCVM/jml Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jennifer Larson, Chief Financial Officer Gus Psihoyos, City Engineer THE C DUUB-.'&-FE Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manger FROM: Jennifer Larson, Chief Financial Officer Dubuque All-AmericaCity 2007-2012.2013 2017*2019 SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $3,200,000, State Revolving Fund Sewer Revenue Loan DATE: December 21, 2023 INTRODUCTION: The purpose of this memorandum is to recommend the setting of a public hearing on the issuance of a not to exceed $3,200,000 SRF Construction Loan. The proceeds of which will be used to fund the construction of Tamarack Sanitary Sewer Extension, Twin Ridge Sanitary Sewer Extension, and Granger Creek Lift Station Improvements. DISCUSSION In November 2021, the City issued a $465,000 SRF Planning and Design Loan for the Tamarack Sanitary Sewer Extension, Twin Ridge Sanitary Sewer Extension, and Granger Creek Lift Station Improvements. The planning and design loan had a 0% interest rate and no initiation or servicing fees. The $465,000 will be rolled into the SRF Construction Loan and is included in the issuance of not to exceed $3,200,000 State Revolving Fund Sewer Revenue Loan. Tamarack Sanitary Sewer Extension In 1998 the City began to extend sanitary sewer along Granger Creek, for the Dubuque Technology Park development. The Granger Creek Interceptor sewer extension consisted of the Granger Creek Pump Station and approximately 17,600 LF of both 20 inch and 18" diameter pipe. In 2015, the City extended the interceptor sewer, continuing along Granger Creek and U.S. Highway 151/61, to the Dubuque Regional Airport. The GCIS extension increased Sewer Shed 4 to approximately 6,300 acres. Since the GCIS and the extension to the Dubuque Regional Airport has been completed, several adjacent areas in or near Key West have connected to the City's sewer system, such as Table Mound Mobile Home park, Kerrigan Heights Subdivision, Truck Country, a portion of Twin Ridge Subdivision, and Silver Oaks Subdivision. Tamarack Business Park and the City's Crossroads Industrial Park, along with other adjacent parcels, are also able to be served by GCIS. The City of Dubuque submitted a facility plan, based on the results of an intensive evaluation of the existing interceptor collection and pumping systems that convey sewage to the Water Resource Recovery Center (WRRC), to Iowa Department of Natural Resources (IDNR), in September of 2021. The facility plan identified three improvement projects related to the Granger Creek Interceptor Sewer System: Granger Creek Lift Station Capacity Improvements, Twin Ridge Sanitary sewer Extension and lagoon abandonment and the Tamarack Sanitary Sewer Extension. The Tamarack Sanitary Sewer Extension Project will extend sanitary sewer service to the existing unsewered commercial development, Tamarack Business Park, and provide future sanitary sewer service opportunities for the Crossroads Industrial Park area along with adjacent developed and undeveloped areas to the west. The City selected Fehr Graham, as the design consultant, for this project through the RFP Process. The sanitary sewer design is based on the approved IDNR Facility plan, for the Granger Creek Interceptor Sewer Improvements. The sanitary sewer extension will cross under U.S. Highway 151/61, to the west, and continue along an unnamed tributary of Granger Creek and terminate at the south property line of the Crossroads Industrial Park property. The new sewer extension will provide direct access for the existing unsewered Tamarack Business Park development to connect to the City's sanitary sewer collection system, along with providing access to sewer service for adjacent developed and undeveloped areas to the north and west of Tamarack Business Park. Upon completion of the project, a sanitary sewer connection fee will be established for the service area. The connection fee will be calculated by distributing the total project costs over the gross acreage served by the sewer extension. This will determine the sanitary sewer cost per acre. Future developments with connections to this sewer extension will be charged at the calculated fee per acre, for each acre that will be connected to the sewer extension. Estimated project cost of Tamarack Sanitary Sewer Extension is $1,657,572. Twin Ridge Sanitary Sewer Extension and Lagoon Abandonment Project The City of Dubuque submitted a facility plan, based on the results of an intensive evaluation of the existing interceptor collection and pumping systems that convey sewage to the Water Resource Recovery Center (WRRC), to Iowa Department of Natural Resources (IDNR), in September of 2021. The facility plan identified three improvement projects related to the Granger Creek Interceptor Sewer System: Granger Creek Lift Station Capacity Improvements, Twin Ridge Sanitary sewer Extension and lagoon abandonment and the Tamarack Sanitary Sewer Extension. The Twin Ridge Sanitary Sewer Extension and Lagoon Abandonment Project will extend the sanitary sewer gravity system and connect into the existing Twin Ridge Subdivision gravity sewer system along with abandoning the existing lagoon system. With the completion of this project the City will no longer need to permit, operate, and maintain the lagoon system and the parcel, currently occupied by the lagoon system, would then be available for redevelopment. The City selected Origin Design as the design consultant for this project through the RFP Process. The sanitary sewer design is based on the approved IDNR Facility plan, for the Granger Creek Interceptor Sewer Improvements. The sanitary sewer extension will cross under U.S. Highway 151/61, to the west, and connect into the existing Twin Ridge Subdivision gravity sewer system. The lagoon system will be decommissioned and abandoned in accordance with IDNR regulations. A sanitary sewer connection fee will not be established for the service area since the Twin Ridge Subdivision is currently served by a City owned sanitary sewer collection system. Estimated project cost of Twin Ridge Sanitary Sewer Extension and Lagoon Abandonment Project is $1,175,373. Granger Creek Lift Station Improvements The City of Dubuque submitted a facility plan, based on the results of an intensive evaluation of the existing interceptor collection and pumping systems that convey sewage to the Water Resource Recovery Center (WRRC), to Iowa Department of Natural Resources (IDNR), in September of 2021. The facility plan identified three improvement projects related to the Granger Creek Interceptor Sewer System: Granger Creek Lift Station Capacity Improvements, Twin Ridge Sanitary sewer Extension and lagoon abandonment and the Tamarack Sanitary Sewer Extension. The Granger Creek Lift Station Improvements Project will increase the firm pumping capacity of the existing Granger Creek Lift Station from 0.5 MGD to 2.9 MDG which will provide the needed capacity to serve existing and proposed developments within sewer shed 4. The City selected Strand Associates, as the design consultant, for this project through the RFP Process. The Granger Creek Lift Station Improvements design is based on the approved IDNR Facility plan, for the Granger Creek Interceptor Sewer Improvements. The increased pumping capacity is needed to serve additional areas that are now served by the original Granger Creek Interceptor Sewer (constructed in 1998) and the extension of the interceptor sewer to the Dubuque Regional Airport (constructed in 2015). The project will also provide upgrades to the existing Catfish Creek Lift Station. The installation of the new Granger Creek Lift Station control equipment, within the Catfish Creek Lift Station Building, will require some minor modifications to electrical fixtures and the replacement of the existing HVAC system, to be code compliant. The installation of the new control equipment, for the upgraded Granger Creek Lift Station, will require the HVAC system to be replaced to ensure proper temperature control, for all electrical components, and proper ventilation for personnel entering the building. The new HVAC system will utilize some of the existing roof penetrations, used by the existing system, but will require modifications to the existing openings along with additional roof penetrations. The modified and additional roof openings will require the replacement of the existing roofing system. The existing roofing system is in extremely poor condition and is not able to be modified to accommodate the changes. Estimated project cost of Granger Creek Lift Station Improvements is $1,062,672. The State Revolving Capital Loan Notes will carry an annual 2.84% interest rate for 20 years, with an annual servicing fee of 0.25%. There is also a onetime 0.5% upfront loan origination fee. ACTION TO BE TAKEN I respectfully recommend the adoption of the enclosed resolution fixing the date of January 16, 2024, for a public hearing on the proposition of issuing not to exceed $3,200,000 in State Revolving Fund Sewer Revenue Loan for Tamarack Sanitary Sewer Extension, Twin Ridge Sanitary Sewer Extension, and Granger Creek Lift Station Improvements. Attachments cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Gus Psihoyos, City Engineer Todd Irwin, Engineering Technician OORSEY"' always ahead December 20, 2023 VIA EMAIL Jenny Larson Chief Financial Officer Dubuque, Iowa Re: $3,200,000 SRF Sewer Revenue Loan and Disbursement Agreement File No. 430411-9 Dear Jenny: We have prepared and attach proceedings for use at the January 3rd City Council meeting to set January 16th as the date for a hearing on the proposal to enter into the SRF Sewer Revenue Loan and Disbursement Agreement (the "Agreement"). The documents attached include the following items: 1. Resolution fixing the date of meeting at which it is proposed to take action to enter into the Agreement. The form of notice is set out in Section 2 of the resolution. 2. Attestation Certificate with respect to the validity of the transcript. 3. Organization and Establishment Certificate. 4. Outstanding Debt Certificate with respect to the outstanding debt of the Sewer Utility. 5. Publication Certificate with respect to publication of the notice, to which must be attached the publisher's affidavit of publication with a clipping of the notice as published. The notice must be published at least once, not less than four (4) and not more than twenty (20) days before the meeting date set for the hearing, in a legal newspaper which has a general circulation in Dubuque. The last date on which this notice can be effectively published is January 12, 2024. As soon as the notice appears in the newspaper, please have a copy scanned and emailed to me. 8oi Grand Avenue I Suite 4100 1 Dubuque, IA 150309-2790 1 T 515.283.1000 1 F 515.283•io6o I dorsey.com Please return one fully executed copy of these proceedings to us as soon as they are available. Please call me if you have questions. Best regards, David D. Grossklaus John P. Danos Attachments cc: Crenna Brumwell Adrienne Breitfelder Deron Muehring Steve Brown Todd Irwin Tionna Pooler Tracy Scebold Tony Toigo Lee Wagner OORSEY & WHITNEY LLP Dubuque/ 430411-9/1s"/z - Sewer Rev MINUTES TO SET DATE FOR HEARING ON ENTERING INTO A LOAN AND DISBURSEMENT AGREEMENT 430411-9 (N/I) Dubuque, Iowa January 3, 2024 The City Council of the City of Dubuque, Iowa, met on January 3, 2024, at 6:30 p.m., at the Historic Federal Building, 350 W. 6th St, Second Floor Council Chambers, Dubuque, Iowa. The Mayor presided and the roll was called showing the following members of the Council present and absent: Present: Mayor Cavanagh; Council Members Farber, Jones, Resnick, Roussell, Sprank, Wethal. Absent: None. Council Member Roussell introduced the resolution hereinafter next set out and moved its adoption, seconded by Council Member Wethal; and after due consideration thereof by the Council, the Mayor put the question upon the adoption of the said resolution and the roll being called, the following named Council Members voted: Ayes: Jones, Cavanagh, Farber, Wethal, Roussell, Sprank, Resnick Nays: None. Whereupon, the Mayor declared the resolution duly adopted as follows: -1- DORSEY & WHITNEY LLP, ATTORNEYS, DUBUQUE, IOWA Dubuque/ 430411-9/1s"/z - Sewer Rev RESOLUTION NO.4-24 Resolution to fix a date for a public hearing on proposal to enter into a Sewer Revenue Loan and Disbursement Agreement and to borrow money thereunder in a principal amount not to exceed $3,200,000 WHEREAS, the City of Dubuque (the "City"), in Dubuque County, State of Iowa, did heretofore establish a Municipal Sanitary Sewer System (the "Utility") in and for the City which has continuously supplied sanitary sewer service in and to the City and its inhabitants since its establishment; and WHEREAS, the management and control of the Utility are vested in the City Council (the "Council") and no board of trustees exists for this purpose; and WHEREAS, pursuant to prior resolutions of the Council, the City has heretofore issued sewer revenue bonds or notes as set forth on attached outstanding debt certificate, and a portion of such prior sewer revenue debt remains outstanding (the "Outstanding Indebtedness"); and WHEREAS, pursuant to the resolutions relating to and authorizing the Outstanding Indebtedness (the "Outstanding Bond Resolutions") the City reserved the right to issue additional obligations payable from the net revenues of the Utility and ranking on a parity with the Outstanding Indebtedness under the terms and conditions set forth in the Outstanding Bond Resolutions; and WHEREAS, the City now proposes to enter into a Sewer Revenue Loan and Disbursement Agreement (the "Agreement") and to borrow money thereunder in a principal amount not to exceed $3,200,000, pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose of paying the cost, to that extent, of planning, designing and constructing improvements and extensions to the Utility (the "Project"), and it is necessary to fix a date of meeting of the Council at which it is proposed to take action to enter into the Agreement and to give notice thereof as required by such law; NOW, THEREFORE, Be It Resolved by the City Council of the City of Dubuque, Iowa, as follows: Section 1. This City Council shall meet on January 16, 2024, at 6:30 p.m., at the Historic Federal Building, 350 W. 6th St, Second Floor Council Chambers, at which time and place a hearing will be held and proceedings will be instituted and action taken to enter into the Agreement. Section 2. The City Clerk is hereby directed to give notice of the proposed action on the Agreement setting forth the amount and purpose thereof, the time when and place where the said meeting will be held, by publication at least once, not less than four (4) and not more than twenty (20) days before the meeting, in a legal newspaper which has a general circulation in the City. The notice shall be in substantially the following form: -2- DORSEY & WHITNEY LLP, ATTORNEYS, DUBUQUE, IOWA Dubuque/ 430411-9/1s"/z - Sewer Rev NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS TO ENTER INTO A LOAN AND DISBURSEMENT AGREEMENT IN A PRINCIPAL AMOUNT NOT TO EXCEED $3,200,000 (SEWER REVENUE) The City Council of the City of Dubuque, Iowa, will meet on January 16, 2024, at 6:30 p.m., at the Historic Federal Building, 350 W. 6th St, Second Floor Council Chambers, for the purpose of instituting proceedings and taking action to enter into a loan and disbursement agreement (the "Agreement") and to borrow money thereunder in a principal amount not to exceed $3,200,000 for the purpose of paying the cost, to that extent, of planning, designing and constructing improvements and extensions to the Municipal Sanitary Sewer System (the "Utility") of the City. The Agreement will not constitute a general obligation of the City, nor will it be payable in any manner by taxation but, together with the City's outstanding Sewer Revenue Indebtedness and any additional obligations of the City as may be hereafter issued and outstanding from time to time ranking on a parity therewith, will be payable solely and only from the Net Revenues of the Utility. At that time and place, oral or written objections may be filed or made to the proposal to enter into the Agreement. After receiving objections, the City may determine to enter into the Agreement, in which case, the decision will be final unless appealed to the District Court within fifteen (15) days thereafter. By order of the City Council of the City of Dubuque, Iowa. Adrienne Breitfelder City Clerk -3- DORSEY & WHITNEY LLP, ATTORNEYS, DUBUQUE, IOWA Dubuque/ 430411-9/ I" % - sewer Rev Section 3. Pursuant to Section 1.150-2 of the Income Tax Regulations (the "Regulations") of the Internal Revenue Service, the City declares (a) that it intends to undertake the Project which is reasonably estimated to cost approximately $3,200,000, (b) that other than (i) expenditures to be paid or reimbursed from sources other than the issuance of bonds, notes or other obligations (the "Bonds"), or (ii) expenditures made not earlier than 60 days prior to the date of this Resolution or a previous intent resolution of the City, or (ill) expenditures amounting to the lesser of $100,000 or 5% of the proceeds of the Bonds, or (iv) expenditures constituting preliminary expenditures as defined in Section 1. 1 50-2(f)(2) of the Regulations, no expenditures for the Project have heretofore been made by the City and no expenditures will be made by the City until after the date of this Resolution or a prior intent resolution of the City, and (c) that the City reasonably expects to reimburse the expenditures made for costs of the City out of the proceeds of the Bonds. This declaration is a declaration of official intent adopted pursuant to Section 1.150-2 of the Regulations. Section 4. All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Section 5. This resolution shall be in full force and effect immediately upon its adoption and approval, as provided by law. Passed and approved January 3, 2024. Attest: Mayor City Clerk On motion and vote, the meeting adjourned. ivlayor Attest: City Clerk -4- DORSEY & WHITNEY LLP, ATTORNEYS, DUBUQUE, IOWA Dubuque/ 430411-911" /z - Sewer Rev ATTESTATION CERTIFICATE: STATE OF IOWA COUNTY OF DUBUQUE SS: CITY OF DUBUQUE I, the undersigned, City Clerk of the City of Dubuque, Iowa, do hereby certify that attached hereto is a true and correct copy of the proceedings of the City Council relating to fixing a date for hearing on the City Council's proposal to take action in connection with a Sewer Revenue Loan and Disbursement Agreement. WITNESS MY HAND this r `� day of 3o,0+Ua(,y , 2024. City Clerk -5- DORSEY & WHITNEY LLP, ATTORNEYS, DUBUQUE, IOWA Dubuque/ 430411-9/1s"/z - Sewer Rev ORGANIZATION AND ESTABLISHMENT CERTIFICATE: STATE OF IOWA COUNTY OF DUBUQUE SS: CITY OF DUBUQUE I, the undersigned City Clerk, do hereby certify that the aforementioned City is organized and operating under the provisions of Title IX of the Code of Iowa and not under any special charter and that such City is operating under the Council -manager -ward form of government and that there is not pending or threatened any question or litigation whatsoever touching the incorporation of the City, the inclusion of any territory within its limits or the incumbency in office of any of the officials hereinafter named. And I do further certify that the following named parties are officials of the City as indicated: Brad Cavanagh, Mayor Michael Van Milligen, City Manager Jennifer Larson, Chief Financial Officer Adrienne Breitfelder, City Clerk Jennifer Larson, City Treasurer Ric Jones, Council Member/Mayor Pro Tern David Resnick, Council Member Susan Farber, Council Member Laura Roussell, Council Member Danny Sprank, Council Member Katy Wethal, Council Member And I do further certify that the City has provided for the office of Treasurer, and the Council has selected the Treasurer. I further certify that the City established the Municipal Sanitary Sewer System (the "Utility") and that the Utility has been in continuous operation by the City since its establishment as aforesaid in supplying sanitary sewer service to the City and its inhabitants. -6- DORSEY & WHITNEY LLP, ATTORNEYS, DUBUQUE, IOWA Dubuque/ 430411-91151 '/2 - Sewer Rev I further certify that the management and control of the Utility are vested in the City Council of the City, and that no board of trustees exists which has any part of the control and management of such Utility. WITNESS MY HAND this day of J- MUCX/'y , 2024. A-Z-6,& City Clerk -7- DORSEY & WHITNEY LLP, ATTORNEYS, DUBUQUE, IOWA Dubuque/ 430411-9/1s"/z - Sewer Rev OUTSTANDING DEBT CERTIFICATE: STATE OF IOWA COUNTY OF DUBUQUE SS: CITY OF DUBUQUE I, the undersigned, City Clerk of the City of Dubuque, Iowa (the "City"), do hereby certify that the City has no bonds or other obligations of any kind now outstanding which are secured by and payable from the revenues derived from the operation of the Municipal Sanitary Sewer System (the "Utility"), except as follows: Date Tyne Principal Amount Outstanding Maturity (Attach here a separate sheet listing any outstanding obligations of the City secured by and payable from the revenues of the Utility, excluding the proposed issue.) WITNESS MY HAND this day of 52024. City Clerk -8- DORSEY & WHITNEY LLP, ATTORNEYS, DUBUQUE, IOWA Dubuque/ 430411-9/1"'h - Sewer Rev PUBLICATION CERTIFICATE: STATE OF IOWA COUNTY OF DUBUQUE SS: CITY OF DUBUQUE I, the undersigned, City Clerk of the City of Dubuque, Iowa, do hereby certify that pursuant to the resolution of its City Council fixing a date of meeting at which it is proposed to take action to enter into a loan and disbursement agreement, the notice, of which the printed slip attached to the publisher's affidavit hereto attached is a true and complete copy, was published on the date and in the newspaper specified in such affidavit, which newspaper has a general circulation in the City. WITNESS MY HAND this day of 7m(jary , 2024. ��A" A44& City Clerk (Attach here the publisher's original affidavit with clipping of the notice, as published.) -9- DORSEY & WHITNEY LLY, ATTORNEYS, DUBUQUE, IOWA 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: 01/05/2024 and for which the charge is 29.26 Sub cribed to be re me, a Notary Public i and for Dubuque County, Iowa, this 5th day of January, 2024 No*yblic in and for Dub que County, Iowa. L-0 JANET K. PAPE Y Commission �um4er 199859 My Commission expires 12111112025 Ad text : NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS TO ENTER INTO A LOAN AND DISBURSEMENT AGREEMENT IN A PRINCIPAL AMOUNT NOT TO EXCEED $3,200,000 (SEWER REVENUE) The City Council of the City of Dubuque, Iowa, will meet on January 16, 2024, at 6:30 p.m., at the Historic Federal Building, 350 W. 6th St, Second Floor Council Chambers, for the purpose of instituting proceedings and taking action to enter into a loan and disbursement agreement (the "Agreement") and to borrow money thereunder in a principal amount not to exceed $3,200,000 for the purpose of paying the cost, to that extent, of planning, designing and constructing improvements and extensions to the Municipal Sanitary Sewer System (the "Utility") of the City. The Agreement will not constitute a general obligation of the City, nor will it be payable in any manner by taxation but, together with the City's outstanding Sewer Revenue Indebtedness and any additional obligations of the City as may be hereafter issued and outstanding from time to time ranking on a parity therewith, will be payable solely and only from the Net Revenues of the Utility. At that time and place, oral or written objections may be filed or made to the proposal to enter into the Agreement. After receiving objections, the City may determine to enter ! into the Agreement, in which case, the decision will be final unless appealed to the District Court within fifteen (15) days thereafter. By order of the City Council of the City of Dubuque, Iowa. Adrienne Breitfelder City Clerk It 115