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Maturity Extensions of State Revolving Fund Planning and Design Loans, Series 2021A, 2021B and 2021CCity of Dubuque City Council Meeting Consent Items # 05. Copyrighted May 6, 2024 ITEM TITLE: Maturity Extensions of State Revolving Fund Planning and Design Loans, Series 2021 A, 2021 B and 2021 C SUMMARY: City Manager recommending City Council approval of the suggested proceedings to enable the City to extend the maturity date of the State Revolving Fund (SRF) Planning and Design Loans, Series 2021A, 2021 B, and 2021 C, from March 19, 2024, to September 19, 2024. RESOLUTION Extending the Maturity Dates of the City's Sewer Revenue Capital Loan Notes Anticipation Project Notes, Series 2021 A- C SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Amendment 2021A SRF P&D Supporting Documentation Amendment 2021 B SRF P&D Loan Supporting Documentation Amendment 2021 C SRF P&D Loan Supporting Documentation Dorsey Communication 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: Maturity Extensions of State Revolving Fund Planning and Design Loans, Series 2021 A, 2021 B and 2021 C DATE: May 1, 2024 Chief Financial Officer Jennifer Larson is recommending City Council approval of the suggested proceedings to enable the City to extend the maturity date of the State Revolving Fund (SRF) Planning and Design Loans, Series 2021 A, 2021 B, and 2021 C, from March 19, 2024, to September 19, 2024. $1,600,000 in Sewer Revenue Capital Loan Notes State Revolving Loan Fund Planning and Design Loans were issued on March 19, 2021 to fund planning and design costs for Auburn and Custer, Center Place Area, Maiden Lane Area, Hawthorne to Fengler Street "track Line" sewer, Catfish Creek Lift Station and Force Main, and Sanitary Asset Management Master Plan projects. The Iowa Finance Authority has agreed to extend the maturity date of the planning and design loans from March 19, 2024 to September 19, 2024. The planning and design loans will continue to bear an interest rate of 0% until the date of their maturity. The City has the right to prepay principal of the planning and design loans in whole or in part at any time prior to the maturity date. I concur with the recommendation and respectfully request Mayor and City Council approval. � k�41v4j,� Michael C. Van Milligen MCVM/jml Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City 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-AmericaCity 2007-2012.2013 2017*2019 SUBJECT: Maturity Extensions of State Revolving Fund Planning and Design Loans, Series 2021 A, 2021 B and 2021 C DATE: May 1, 2024 INTRODUCTION: The purpose of this memorandum is to provide proceedings to enable the City to extend the maturity date of the State Revolving Fund (SRF) Planning and Design Loans, Series 2021 A, 2021 B, and 2021 C, from March 19, 2024, to September 19, 2024. BACKGROUND On March 19, 2021, State Revolving Fund Planning and Design Loans were issued. Series 2021A was issued in the amount of $970,000 for the planning and design of the Sanitary Asset Management Master Plan to allow the City to better understand the condition of its assets, current and future deficiencies and needs, and the financial resources necessary to rehabilitate and replace assets when necessary. The core components of the undertaking are as follows: level of service requirements, asset inventory, critical asset identification, condition assessment (CCTV pipe inspections, manhole inspections, flow metering, etc.), life cycle costing, prioritized replacement/improvements schedule, and funding strategy. $641,813 is left to draw on the planning and design loan. Series 2021 B was issued in the amount of $350,000 to fund the planning and design for the system improvements to the Catfish Creek Lift Station and Force Main Project. This project involves system improvements to address wet -weather related overflows at the Catfish Creek Lift Station and provide capacity for future development within the Catfish Creek sewer shed. $291 is left to draw on the planning and design loan. Series 2021 C was issued in the amount of $160,000 to fund the planning and design of the rehabilitation/reconstruction of the sanitary sewers serving Auburn and Custer Street area, the Center Place Area, the Cooper and Maiden Lane area, and the Hawthorne to Fengler Street "track line" sewer that runs along the railroad tracks. These sewer systems have all been identified as significant sources of I&I due to their deteriorated conditions. $84,714 is left to draw on the planning and design loan. The State Revolving Capital Loan Notes will carry a 0% interest rate for up to three years, or longer if an extension is filed, and have no initiation or servicing fees. The loan may be rolled into an SRF Construction Loan or repaid when permanent financing is obtained. DISCUSSION The Iowa Finance Authority has agreed to extend the maturity date of the planning and design loans from March 19, 2024 to September 19, 2024. The planning and design loans will continue to bear an interest rate of 0% until the date of their maturity. The City has the right to prepay principal of the planning and design loans in whole or in part at any time prior to the maturity date. 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 AMENDMENT TO IFA INTERIM LOAN AND DISBURSEMENT AGREEMENT (SEWER REVENUE — SERIES 2021A) This Amendment (the "Amendment") to IFA Interim Loan and Disbursement Agreement is made and entered into as of May 6, 2024, by and between the City of Dubuque, Iowa (the "Participant") and the Iowa Finance Authority, an agency and public instrumentality of the State of Iowa (the "Lender"), and amends that certain IFA Interim Loan and Disbursement Agreement, Series 2021A, dated March 19, 2021, by and between the Lender and the Participant (the "Original Series 2021A Agreement"). WHEREAS, the Lender, in cooperation with the Iowa Department of Natural Resources, is authorized to undertake the creation, administration and financing of the Iowa Water Pollution Control Works Financing Program and the Drinking Water Facilities Financing Program established in Iowa Code Sections 455B.291 through 455B.299; and WHEREAS, the Participant has requested, and the Lender has agreed, to extend the Maturity Date set forth in the Original Series 2021A Agreement; and WHEREAS, the City Council of the Participant has approved the extension of the Maturity Date by resolution on May 6, 2024; NOW, THEREFORE, the parties agree as follows: Section 1. Notwithstanding anything to the contrary therein, the Maturity Date of the Original Series 2021A Agreement shall be September 19, 2024. Section 2. Except as otherwise provided in this Amendment, the provisions of the Original Series 2021A Agreement, as heretofore amended, are hereby ratified, approved and confirmed and incorporated herein. IN WITNESS WHEREOF, we have hereunto affixed our signatures all as of the date first above written. CITY OF DUBUQUE, IOWA By: ayor Attest: City Clerk IN WITNESS WHEREOF, I have hereunto affixed my signature all as of the date first above written. IOWA FINANCE AUTHORITY By: Its: AMENDMENT TO IFA INTERIM LOAN AND DISBURSEMENT AGREEMENT (SEWER REVENUE — SERIES 2021B) This Amendment (the "Amendment") to IFA Interim Loan and Disbursement Agreement is made and entered into as of May 6, 2024, by and between the City of Dubuque, Iowa (the "Participant") and the Iowa Finance Authority, an agency and public instrumentality of the State of Iowa (the "Lender"), and amends that certain IFA Interim Loan and Disbursement Agreement, Series 2021B, dated March 19, 2021, by and between the Lender and the Participant (the "Original Series 2021B Agreement"). WHEREAS, the Lender, in cooperation with the Iowa Department of Natural Resources, is authorized to undertake the creation, administration and financing of the Iowa Water Pollution Control Works Financing Program and the Drinking Water Facilities Financing Program established in Iowa Code Sections 455B.291 through 455B.299; and WHEREAS, the Participant has requested, and the Lender has agreed, to extend the Maturity Date set forth in the Original Series 2021B Agreement; and WHEREAS, the City Council of the Participant has approved the extension of the Maturity Date by resolution on May 6, 2024; NOW, THEREFORE, the parties agree as follows: Section 1. Notwithstanding anything to the contrary therein, the Maturity Date of the Original Series 2021B Agreement shall be September 19, 2024. Section 2. Except as otherwise provided in this Amendment, the provisions of the Original Series 2021B Agreement, as heretofore amended, are hereby ratified, approved and confirmed and incorporated herein. IN WITNESS WHEREOF, we have hereunto affixed our signatures all as of the date first above written. CITY OF DUBUQUE, IOWA By: I � �—. z � - - �-- Z- Mayor Attest: Q W4 a2L"�—� City Clerk IN WITNESS WHEREOF, I have hereunto affixed my signature all as of the date first above written. IOWA FINANCE AUTHORITY By: Its: AMENDMENT TO IFA INTERIM LOAN AND DISBURSEMENT AGREEMENT (SEWER REVENUE — SERIES 2021C) This Amendment (the "Amendment") to IFA Interim Loan and Disbursement Agreement is made and entered into as of May 6, 2024, by and between the City of Dubuque, Iowa (the "Participant") and the Iowa Finance Authority, an agency and public instrumentality of the State of Iowa (the "Lender"), and amends that certain IFA Interim Loan and Disbursement Agreement, Series 2021C, dated March 19, 2021, by and between the Lender and the Participant (the "Original Series 2021 C Agreement"). WHEREAS, the Lender, in cooperation with the Iowa Department of Natural Resources, is authorized to undertake the creation, administration and financing of the Iowa Water Pollution Control Works Financing Program and the Drinking Water Facilities Financing Program established in Iowa Code Sections 455B.291 through 455B.299; and WHEREAS, the Participant has requested, and the Lender has agreed, to extend the Maturity Date set forth in the Original Series 2021 C Agreement; and WHEREAS, the City Council of the Participant has approved the extension of the Maturity Date by resolution on May 6, 2024; NOW, THEREFORE, the parties agree as follows: Section 1. Notwithstanding anything to the contrary therein, the Maturity Date of the Original Series 2021 C Agreement shall be September 19, 2024. Section 2. Except as otherwise provided in this Amendment, the provisions of the Original Series 2021 C Agreement, as heretofore amended, are hereby ratified, approved and confirmed and incorporated herein. IN WITNESS WHEREOF, we have hereunto affixed our signatures all as of the date first above written. CITY OF DUBUQUE, IOWA By: Mayor Attest:17 / City Clerk IN WITNESS WHEREOF, I have hereunto affixed my signature all as of the date first above written. IOWA FINANCE AUTHORITY By: Its: 0ORSEY DORSEY & WHITNEY LLP April 30, 2024 VIA EMAIL Jenny Larson Chief Financial Officer Dubuque, Iowa Re: Maturity Extensions - SRF Planning and Design Loans Our File No. 430411-9 Dear Jenny: We have prepared and attach the necessary proceedings to enable the City Council to extend the maturity date of the City's SRF Planning and Design Loans, Series 2021A-C, from March 19, 2024 to September 19, 2024. The proceedings attached include the following items: 1. Resolution extending the maturity date of the SRF Planning and Design Loans. 2. Amendment to IFA Interim Loan and Disbursement Agreement for each Planning and Design Loan. Please sign each Amendment and have the Mayor sign. Please return each executed Amendment and one fully executed resolution to our office for our records, and please retain one copy for the City's records. We will have the Amendment signed by the Iowa Finance Authority, after which we will provide you with a fully executed copy for the City's records. If you have any questions, please contact Emily Hammond or me. Best regards, David D. Grossklaus John P. Danos Attachments cc: Todd Irwin Crenna Brumwell Adrienne Breitfelder Deron Muehring Steve Brown 8oi Grand Avenue I Suite 41001 Des Moines, IA 150309-8002 IT 515.283.10001 F 515.z83.io6o I dorsey.com Dubuque/430411-9/Extend P&D Maturity INTERIM LOAN AND DISBURSEMENT AGREEMENT MATURITY EXTENSIONS Dubuque, Iowa 430411-9 May 6, 2024 The City Council of the City of Dubuque, Iowa, met on May 6, 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 being called, there were present and absent the following named Council Members: Present: Mayor Brad Cavanagh; Council Members Susan Farber, Ric Jones, David Resnick, Laura Roussell, Danny Sprank, and Katy Wethal. Absent: The City Council took up and considered the extension of the maturity date of its outstanding Sewer Revenue Capital Loan Notes Anticipation Project Notes, Series 2021A-C. After due consideration and discussion, Council Member Resnick introduced the resolution next hereinafter set out and moved its adoption. The motion was seconded by Council Member Farber, and passed with record vote as follows: Ayes: Jones, Wethal, Farber, Sprank, Resnick, Cavanagh, Roussell. Nays: Thereupon, the resolution was declared adopted, as follows: -1- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque-430411-9/Extend P&D Maturity RESOLUTION NO. 105-24 Resolution Extending the Maturity Dates of the City's Sewer Revenue Capital Loan Notes Anticipation Project Notes, Series 2021A-C WHEREAS, the City Council of the City of Dubuque, Iowa (the "City"), has previously authorized the issuance of its Sewer Revenue Capital Loan Notes Anticipation Project Note, Series 2021A, in a principal amount not to exceed $970,000 (the "Series 2021A Project Note") to the Iowa Finance Authority, as lender (the "Lender"), for the purpose of paying the cost, to that extent, of planning and designing improvements and extensions to the Municipal Sanitary Sewer System (the "Utility") of the City; and WHEREAS, the City Council has also previously authorized the issuance of its Sewer Revenue Capital Loan Notes Anticipation Project Note, Series 202113, in a principal amount not to exceed $350,000 (the "Series 2021B Project Note") to the Lender for the purpose of paying the cost, to that extent, of planning and designing improvements and extensions to the Utility; and WHEREAS, the City Council has also previously authorized the issuance of its Sewer Revenue Capital Loan Notes Anticipation Project Note, Series 2021C, in a principal amount not to exceed $160,000 (the "Series 2021C Project Note") (the Series 2021A Project Note, the Series 2021B Project Note and the Series 2021C Project Note are collectively referred to hereinafter as the "Project Notes") to the Lender for the purpose of paying the cost, to that extent, of planning and designing improvements and extensions to the Utility; and WHEREAS, the City intended to refund the Project Notes by their scheduled maturity date on March 19, 2024, through the issuance of bonds or notes, but refunding proceeds were not yet available to the City; and WHEREAS, the Lender has agreed to extend the maturity date of the Project Notes to September 19, 2024, on the terms hereinafter set out; NOW, THEREFORE, Be It Resolved by the City Council of the City of Dubuque, Iowa, as follows: Section 1. The maturity date of the Project Notes is hereby extended to September 19, 2024, and the Project Notes shall continue to bear interest at the rate of 0% per annum from the date hereof to their maturity. Section 2, The City Council hereby reserves the right to prepay principal of the Project Notes in whole or in part at any time prior to the maturity thereof with accrued interest to the date of such payment. Section 3. The Mayor and City Clerk are hereby authorized and directed to enter into whatever legal documents are required by the Lender to effectuate the provisions of this resolution. -2- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque143041E-9/Extend P&D Maturity Section 4. All resolutions or parts of resolutions in conflict herewith be and the same are hereby repealed, to the extent of such conflict. Passed and approved May 6, 2024. Attest: City Clerk • • . On motion and vote, the meeting adjourned. Attest: aklee-',� City Clerk ayor or -3- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubugue1430411-9/Extend P&D Maturity ATTESTATION CERTIFICATE: STATE OF IOWA COUNTY OF DUBUQUE SS: CITY OF DUBUQUE I, the undersigned, City Clerk of the City of Dubuque, do hereby certify that I have in my possession or have access to the complete records of the City Council; that I have carefully compared the transcript hereto attached with the aforesaid records; and that said transcript hereto attached is a true, correct and complete copy of all the records relating to the extension of the maturity date of the City's Sewer Revenue Capital Loan Notes Anticipation Project Notes, Series 2021 A-C, as shown therein. WITNESS MY HAND this 9 day of (YiA 52024. City Clerk -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA