Proceedings for Public Hearing on the Issuance of Not to Exceed $3,200,000, State Revolving Fund Sewer Revenue Loan_HearingCity of Dubuque
City Council Meeting
Public Hearings # 02.
Copyrighted
January 16, 2024
ITEM TITLE: Proceedings for Public Hearing on the Issuance of Not to Exceed
$3,200,000, State Revolving Fund Sewer Revenue Loan
SUMMARY: Proof of Publication on notice of public hearing to consider the issuance
of not to exceed $3,200,000 State Revolving Fund Sewer Revenue
Loan and the proceeds will be used to fund the construction of Tamarack
Sanitary Sewer Extension, Twin Ridge Sanitary Sewer Extension, and
Granger Creek Lift Station Improvements and City Manager
recommending approval
RESOLUTION Taking Additional Action on Proposal to Enter into a
Sewer Revenue Loan and Disbursement Agreement
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
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 for Public Hearing on the Issuance of Not to Exceed
$3,200,000, State Revolving Fund Sewer Revenue Loan
DATE: January 9, 2024
Chief Financial Officer Jennifer Larson is recommending City Council approval of the
suggested proceedings for a public hearing on the issuance of not to exceed
$3,200,000 State Revolving Fund Sewer Revenue Loan. $3,200,000 of the proceeds
will be used to fund the construction of Tamarack Sanitary Sewer Extension, Twin
Ridge Sanitary Sewer Extension, and Granger Creek Lift Station Improvements.
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 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 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.
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.
The State Revolving Capital Loan Notes will carry a variable 2.43% interest rate for 20
years, with an annual servicing fee of 0.25%. There is also a onetime 0.5% upfront loan
origination fee.
The proceedings have been prepared to show as a first step the receipt of any oral or
written objections from any resident or property owner to the proposed action of the
Council to authorize the form of Loan and Disbursement Agreement and issue the
Notes to the Iowa Finance Authority. A summary of objections received or made, if any,
should be attached to the proceedings. After all objections have been received and
considered if the Council decides to enter into the Agreement and issue the Notes, a
form of resolution follows that should be introduced and adopted, entitled "Resolution
taking additional action on proposal to enter into a Sewer Revenue Loan and
Disbursement Agreement."
In the event the Council decides to abandon the proposal, then the form of resolution
included in said proceedings should not be adopted. In this event, a motion merely be
adopted to the effect that such proposal is abandoned.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mich el C. Van Milligen
MCVM/jml
Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Brian DeMoss, Finance Manager
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 -America City
ii
2007-2012.2013
2017*2019
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$3,200,000, State Revolving Fund Sewer Revenue Loan
DATE: January 9, 2024
INTRODUCTION:
The purpose of this memorandum is to provide suggested proceedings for a public hearing
on the issuance of a not to exceed $3,200,000 State Revolving Fund Sewer Revenue
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 a variable 2.43% interest rate for 20
years, with an annual servicing fee of 0.25%. There is also a onetime 0.5% upfront loan
origination fee.
The proceedings have been prepared to show as a first step the receipt of any oral or written
objections from any resident or property owner to the proposed action of the Council to
authorize the form of Loan and Disbursement Agreement and issue the Notes to the Iowa
Finance Authority. A summary of objections received or made, if any, should be attached
to the proceedings. After all objections have been received and considered if the Council
decides to enter into the Agreement and issue the Notes, a form of resolution follows that
should be introduced and adopted, entitled "Resolution taking additional action on proposal
to enter into a Sewer Revenue Loan and Disbursement Agreement."
In the event the Council decides to abandon the proposal, then the form of resolution
included in said proceedings should not be adopted. In this event, a motion merely be
adopted to the effect that such proposal is abandoned.
ACTION TO BE TAKEN
I respectfully recommend approval of the resolutions.
Attachments
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Gus Psihoyos, City Engineer
Todd Irwin, Engineering Technician
Dubuque 1430411-9H 2nd % Hrg Only Sewer Rev.
(Hearing — Sewer Revenue)
430411-9
Dubuque, Iowa
January 16, 2024
The City Council of the City of Dubuque, Iowa, met on January 16, 2024, at 6:30 p.m., at
the Historic Federal Building, 350 W. 6ch St, Second Floor Council Chambers, Dubuque, Iowa.
The meeting was called to order by the Mayor, and the roll was called showing the following
members of the Council present and absent:
Present: Mayor Brad Cavanagh; Council Members Susan Farber, Ric Jones, David
Resnick, Laura Roussell, Danny Sprank, and Katy Wethal.
Absent: None.
This being the time and place specified for holding the public hearing and taking action on
the proposal to enter into a Sewer Revenue Loan and Disbursement Agreement, the City Clerk
announced that no written objections had been placed on file. Whereupon, the Mayor called for
any written or oral objections, and there being none, the Mayor declared the public hearing closed.
After due consideration and discussion, Council Member Roussell introduced the
following resolution and moved its adoption, seconded by Council Member Wethal. The Mayor
put the question upon the adoption of said resolution, and the roll being called, the following
Council Members voted:
Ayes: Roussell, Jones, Sprank, Resnick, Farber, Wethal, Cavanagh.
Nays: None.
Whereupon, the Mayor declared the resolution duly adopted, as follows:
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Dubuque / 430411-9 / 2nd % Hrg Only Sewer Rev.
RESOLUTION NO. 15-24
Resolution taking additional action on proposal to enter into a Sewer Revenue Loan
and Disbursement Agreement
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 in prior proceedings of the Council, 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 has heretofore proposed to contract indebtedness and enter into a
certain 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, and has published notice
of the proposed action and has held a hearing thereon on January 16, 2024;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Dubuque, Iowa,
as follows:
Section 1. The City Council hereby determines to enter into the Agreement in the
future and orders that Sewer Revenue Bonds be issued at such time in evidence thereof. The City
Council further declares that this resolution constitutes the "additional action" required by
Section 384.24A of the Code of Iowa.
Section 2. All resolutions or parts thereof in conflict herewith are hereby repealed, to
the extent of such conflict.
-2-
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Dubuque / 430411-912nd'/2 Hrg Only Sewer Rev.
Section 3. This resolution shall be in full force and effect immediately upon its
adoption and approval, as provided by law.
Passed and approved January 16, 2024,
Attest:
City Clerk
• • .
On motion and vote, the meeting adjourned.
Attest:
City Clerk
a or
-3-
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Dubuque / 430411-9 / 2nd %: Hrg Only Sewer Rev,
ATTESTATION CERTIFICATE:
STATE OF IOWA
DUBUQUE COUNTY SS:
CITY OF DUBUQUE
1, the undersigned, City Clerk of the City of Dubuque, do hereby certify that attached hereto
is a true and correct copy of the proceedings of the City Council relating to the hearing on the City
Council's intention to enter into a Sewer Revenue Loan and Disbursement Agreement in a
principal amount not to exceed $3,200,000.
C n
WITNESS MY HAND this LE day of J-' ' y , 2024,
City Clerk
-4-
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, 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