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Proceedings to Set Public Hearing on June 2, 2025 for Not to Exceed $2,000,000 Water Revenue Capital Loan Notes (State Revolving Loan Fund Program) Private Lead Service Line Replacement Pilot Program - Phase 1City of Dubuque City Council Copyrighted May 19, 2025 ITEMS SET FOR PUBLIC HEARING # 5. ITEM TITLE: Proceedings to Set Public Hearing on June 2, 2025 for the Issuance of Not to Exceed $2,000,000 Water Revenue Capital Loan Notes (State Revolving Loan Fund Program) Private Lead Service Line Replacement Pilot Program — Phase I SUMMARY: City Manager recommending that a public hearing be set for June 2, 2025, on the issuance of a not to exceed $2,000,000 Water Revenue Capital Loan Notes, State Revolving Loan Fund Program, the proceeds of which will be used to fund the Private Lead Service Line Replacement Pilot Program — Phase I. RESOLUTION To fix a date for a public hearing on proposal to enter into a Water Revenue Loan and Disbursement Agreement and to borrow money thereunder in a principal amount not to exceed $2,000,000 SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for DISPOSITION: June 2, 2025 ATTACHMENTS: 1. MVM Memo Private Lead Lines SRF Set Public Hearing_MVM memo_2025_05_14 2. Private Lead Lines SRF Set Public Hearing_Staff memo_2025_05_14 3. 1st Half Set Hrg Water Rev LDA (Lead Service Line) (Dubuque #20 2025)-v1 Page 605 of 950 THE C DUUB-.'*-TE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Dubuque All-Aoerin City wvxsiw r w- i i 2007*2012.2013 2017*2019 SUBJECT: Proceedings to Set Public Hearing on June 2, 2025 for the Issuance of Not to Exceed $2,000,000 Water Revenue Capital Loan Notes (State Revolving Loan Fund Program) Private Lead Service Line Replacement Pilot Program — Phase I DATE: May 14, 2025 Chief Financial Officer Jennifer Larson recommends that a public hearing be set for June 2, 2025, on the issuance of a not to exceed $2,000,000 Water Revenue Capital Loan Notes, State Revolving Loan Fund Program, the proceeds of which will be used to fund the Private Lead Service Line Replacement Pilot Program — Phase I. I concur with the recommendation and respectfully request Mayor and City Council approval. / � kw4 Michael C. Van Milligen MCVM/jml Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Chris Lester, Water Department Director Brian DeMoss, Finance Manager Page 606 of 950 THE CITY OF DUB E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Chief Financial Officer Dubuque AnA AI -America City II I., 2007 • 2012 •2013 SUBJECT: Proceedings to Set Public Hearing on June 2, 2025 for the Issuance of Not to Exceed $2,000,000 Water Revenue Capital Loan Notes (State Revolving Loan Fund Program) Private Lead Service Line Replacement Pilot Program — Phase I DATE: May 14, 2025 INTRODUCTION The purpose of this memorandum is to provide suggested proceedings to set a public hearing on the issuance of not to exceed $2,000,000 Water Revenue Capital Loan Notes (State Revolving Loan Fund Program) Private Lead Service Line Replacement Pilot Program — Phase I. BACKGROUND On November 15, 2021, the Bipartisan Infrastructure Law (BIL) was signed by President Biden, which includes $50 billion to the Environmental Protection Agency (EPA) to strengthen the nation's drinking water and wastewater systems —the single largest investment in clean water that the federal government has ever made. The City of Dubuque is taking part in a unique opportunity to assist approximately 585 homes in three phases (owner occupied or rented) within the city with the functional replacement of private lead -water service lines by trenching or pull -through methods to prevent the potential for drinking water contamination at a house -by -house level. This phase of the pilot program is 100% voluntary and is open to those residents with a verified drinking water lead service line meeting the socioeconomic guidelines established by the Bipartisan Infrastructure Law. The city is moving forward with this unique opportunity and has secured a level of BIL funding to conduct the first of its kind in the community, Lead Service Line Replacement Pilot Program. The BIL funds are being administered locally through the Iowa Department of Natural Resources' State Revolving Fund (Iowa SRF) program, with 49% of construction costs being forgivable. Page 607 of 950 DISCUSSION The scope of work in the first phase includes the replacement of approximately 200 lead service lines identified throughout the City's water distribution service area. The nature of the replacements will vary by site, ranging from full replacements (public water main to interior plumbing) to partial replacements (a portion of the service line between the public water main and the interior plumbing). Work will be conducted within the City's right-of-way and on private properties with authorization from property owners. Water Department staff visited property owners and verified the service line material was lead piping, and to reduce lead exposure to both the homeowner/tenant and the contractors during construction, the preferred methods of replacement by the Iowa DNR are the "pull - through" and directional -drill techniques for service line replacements. These methods also minimize property and soil disturbance beyond the original service trench. As the project is being funded using BIL funds, there are specific requirements that must be adhered to in determining project costs that are eligible for loan forgiveness and overall SRF Funding. Due to the nature of the project, such that the project extends to the interior of a private home, premise plumbing is considered not an eligible expense for either traditional SRF or BIL SRF funds. Some interior or premise plumbing will be required as part of the service line replacement, which will be funded by water funds to cover premise plumbing. The State Revolving Fund loan will have an interest rate of 2.61 %, a maturity date of June 1, 2045, and will be abated from the sanitary sewer fund. ACTION TO BE TAKEN I respectfully recommend the adoption of the enclosed resolution fixing the date of June 2, 2025, for a public hearing on the proposed issuance not to exceed $2 million in Water Revenue Capital Loan Notes (State Revolving Loan Fund Program) for the Private Lead Service Line Replacement Pilot Program — Phase I. Attachments cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Brian DeMoss, Finance Manager Page 608 of 950 DORSEY DORSEY+WHITNEY LLP May 14, 2025 VIA EMAIL Jenny Larson Chief Financial Officer Dubuque, Iowa Re: $2,000,000 SRF Water Revenue Loan and Disbursement Agreement File No. 430411-20 Dear Jenny: We have prepared and attach proceedings for use at the May 19, 2025, City Council meeting to set June 2, 2025, as the date for a hearing on the proposal to enter into the SRF Water Revenue Loan and Disbursement Agreement (the "Agreement") in connection with the Lead Service Line Replacement - Phase 1 Project. 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. Organization and Establishment Certificate. 4. Outstanding Debt Certificate with respect to the outstanding debt of the Water 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 M99 2025. to me. As soon as the notice appears in the newspaper, please have a copy scanned and emailed 8oi Grand Avenue I Suite 4100 1 Des Moines, IA 1 50309-8002 1 T 51-5.283.2-000 1 dorsey.conn Page 609 of 950 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 Christopher Lester Tionna Pooler Tracy Scebold Tony Toigo Lee Wagner DORSEY & WHITNEY LLP Page 610 of 950 Dubuque/ 430411-20/1" %2 - Sewer Rev MINUTES TO SET DATE FOR HEARING ON ENTERING INTO A LOAN AND DISBURSEMENT AGREEMENT 430411-20 (N/I) Dubuque, Iowa May 19, 2025 The City Council of the City of Dubuque, Iowa, met on May 19, 2025, at 6:30 p.m., at the Historic Federal Building, 350 W. 61h 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: II'' Present: Avon (ayomjq , 6)ur1cJ (Y;cmlw5 FoAtc, Jn , , Rc5(1;ck� Roys.scll, — ffmk, uAd Absent: • • Other Business- - MOTION TO APPROVE RESOLUTION Council Member ROU550 introduced the resolution hereinafter next set out and moved its adoption, seconded by Council Member S ('an k ; and after due consideration thereof by the Council, the Mayor put the ques ion upon the adoption of the said resolution and the roll being called, the following named Council Members voted: Ayes: Nays: us [Y Whereupon, the Mayor declared the resolution duly adopted as follows: -1- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque/ 430411-20/1 "/2 - Sewer Rev RESOLUTION NO. 169-25 Resolution to fix a date for a public hearing on proposal to enter into a Water Revenue Loan and Disbursement Agreement and to borrow money thereunder in a principal amount not to exceed $2,000,000 WHEREAS, the City of Dubuque (the "City"), in Dubuque County, State of Iowa, did heretofore establish a Municipal Waterworks Utility System (the "Utility") in and for the City which has continuously supplied water 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 Water Revenue bonds or notes as set forth on attached outstanding debt certificate, and a portion of such prior Water 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 Water Revenue Loan and Disbursement Agreement (the "Agreement') and to borrow money thereunder in a principal amount not to exceed $2,000,000, 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 June 2, 2025, at 6:30 p.m., at the Historic Federal Building, 350 W. 6ch 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, DES MOINES, IOWA Dubuque/ 430411-20/1"'/2 - Sewer Rev NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS TO ENTER INTO A LOAN AND DISBURSEMENT AGREEMENT IN A PRINCIPAL AMOUNT NOT TO EXCEED $2,000,000 (WATER REVENUE) The City Council of the City of Dubuque, Iowa, will meet on June 2, 2025, at 6:30 p.m., at the Historic Federal Building, 350 W. 6ch 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 $2,000,000 for the purpose of paying the cost, to that extent, of planning, designing and constructing improvements and extensions to the Municipal Waterworks Utility 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 Water 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, DES MOINES, IOWA Dubuque/ 43041 1-20/ 1 " '/ - 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 $2,000,000, (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 (iii) 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 1.150-2(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 May 19, 2025. Attest: City Clerk • • Other Business- - On motion and vote, the meeting adjourned. ayor Attest: -4-10 4V,4�4 City Clerk -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque/ 430411-20/1" YZ - 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 Water Revenue Loan and Disbursement Agreement. WITNESS MY HAND this 30� r� day of mo,U , 2025. ow"2" &Z", City Clerk -5- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque/ 430411-20/15"/2 - 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: BrJ cayoo can ; , Mayor PIC110Ae I VO4 MJ , City Manager lnn i fer Larson , Chief Financial Officer A rienrie BreiTie11c ,City Clerk Je- nti'! e r Lo rso(! , City Treasurer �or111, V SAran K , Council Member/Mayor Pro Tem R; G Jones , Council Member Dcwd Qe5(i-,c K , Council Member 5uw Fo�r6er , Council Member Lavro, Rous.Se I I , Council Member 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 Waterworks Utility System (the "Utility") prior to January 1, 1961, and that the Utility has been in continuous operation by the City since its establishment as aforesaid in supplying water service to the City and its inhabitants. -6- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque/ 430411-20/1 "/a - 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. -�,r.4 rn WITNESS MY HAND this 2 day of I � AV , 2025. City Clerk -7- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque/ 430411-20/1" %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 Waterworks Utility System (the "Utility"), except as follows: Principal Amount Date Type Outstandin>; Maturity 08/18/21 Revenue Bond $2,435,000.00 6/1/2030 10/18/07 SRF Revenue $232,000.00 6/1/2028 02/12/10 SRF Revenue $1,346,000.00 6/1/2031 12/01/16 SRF Revenue $6,235,000.00 6/1/2036 08/09/19 SRF Revenue $3,644,000.00 6/1/2040 01/07/22 SRF Revenue $423,767.36 6/1/2047 02/12/10 SRF Revenue $2,692,000.00 6/1/2031 (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.) , � 4!-) WITNESS MY HAND this day of I n,,y , 2025. City Clerk -1- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque/ 430411-20/111 % - 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 , 2025. City Clerk (Attach here the publisher's original affidavit with clipping of the notice, as published.) -9- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Page 619 of 950