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Issuance of Not to Exceed $15,000,000 Sewer Revenue Capital Loan Notes (State Revolving Loan Fund Program) Old Mill Rd. Lift Station Project – Phase 2 Copyrighted June 2, 2025 City of Dubuque ITEMS SET FOR PUBLIC HEARING # 3. City Council ITEM TITLE: Proceedings to Set Public Hearing on June 16, 2025 for the Issuance of Not to Exceed $15,000,000 Sewer Revenue Capital Loan Notes (State Revolving Loan Fund Program) Old Mill Rd. Lift Station Project— Phase 2 SUMMARY: City Manager recommending that a public hearing be set for June 16, 2025, on the issuance of a not to exceed $15,000,000 Sewer Revenue Capital Loan Notes, State Revolving Loan Fund Program, the proceeds of which will be used to fund the Old Mill Road Lift Station and Force Main Project Phase II Project. 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 $15,000,000 SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for DISPOSITION: June 16, 2025 ATTAC H M ENTS: 1. MVM Memo Old MIII Rd LS Phase 2 SRF Set Public Hearing_MVM Memo_2025_05_28 2. Old MIII Rd Phase 2 SRF Set Public Hearing_Staff inemo_2025_05_28 2 3. 1st Half Set Hrg Sewer Rev LDA (Old Mill Phase II) (Dubuque #19 2025)-v1 Page 621 of 2490 Dubuque THE CTTY O� � D F All-America Cit� U� L wcix?�LLnm�ii-n:��. ' � II ��' Maste iece on the Mississi i z°°'.z°lz.z°13 �P pp �oi�*Zo�9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proceedings to Set Public Hearing on June 16, 2025 for the Issuance of Not to Exceed $15,000,000 Sewer Revenue Capital Loan Notes (State Revolving Loan Fund Program) Old Mill Rd. Lift Station Project— Phase 2 DATE: May 28, 2025 Chief Financial Officer Jennifer Larson recommends that a public hearing be set for June 16, 2025, on the issuance of a not to exceed $15,000,000 Sewer Revenue Capital Loan Notes, State Revolving Loan Fund Program, the proceeds of which will be used to fund the Old Mill Road Lift Station and Force Main Project Phase II Project. I concur with the recommendation and respectfully request Mayor and City Council approval. �J�/'vr"', Y WN Michael C. Van Milligen MCVM/jml Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Gus Psihoyos, City Engineer Brian DeMoss, Finance Manager Page 622 of 2490 THE CTTY QF Du��que i.i.i.i.�� D�L L i-America Ci i I I� Mas te�piece on the Mississippi zoo�•zu�z•zo�s TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Chief Financial Officer SUBJECT: Proceedings to Set Public Hearing on June 16, 2025 for the Issuance of Not to Exceed $15,000,000 Sewer Revenue Capital Loan Notes (State Revolving Loan Fund Program) Old Mill Rd. Lift Station Project — Phase 2 DATE: May 28, 2025 INTRODUCTION The purpose of this memorandum is to provide suggested proceedings to set a public hearing on the issuance of a not to exceed $15,000,000 Sewer Revenue Capital Loan Notes (State Revolving Loan Fund Program) Old Mill Rd. Lift Station Project— Phase 2. BACKGROUND The older sections of the Catfish Creek Sanitary Sewer (CCSS) that deliver wastewater to the Catfish Creek Pump Station (CCPS) were constructed circa late 1960s. It is common for sanitary sewer pipes to remain in service for 60 years or longer. However, when sizing an interceptor sewer, it is not common to design it to handle predicted flows more than 50 years into the future, most often a 25-year timespan is considered. The CCPS was last upgraded in 1995 based on predicting growth over the next 20-30 years, consistent with a 25-year life for a lift station. Despite challenges due to terrain (i.e. steep slopes, bluffs, shallow rock, etc.), the City has experienced significant growth within the Catfish Creek sewer shed in the last 20 years. Based on land use mapping in GIS,and only considering development that has occurred over the last twenty years, within the tributary area, the design flow to the CCSS and the CCPS has grown by 6.5 MGD (million gallons per day) since the pump station was last upgraded in 1995 to a capacity of 8.0 MGD. Due to potential development area within the CCSS tributary area, the City hired Strand Associates, Inc. (Strand) in late 2018 to develop a better understanding of the hydraulic capacity of the Catfish Creek Sanitary Sewer collection system. The analysis of the CCSS and the CCPS involved the implementation of a flow metering program and the development of a sanitary sewer model. One of the things that the computer model revealed is that some Page 623 of 2490 wet weather events will result in the flow rising above the top of the pipe, at certain locations, such that the sanitary system becomes pressurized which is an indicator of possible SSO's In late December of 2020, Strand provided the City with final drafts of both the study, for Catfish Creek Sanitary Sewer collection system, and a more focused technical memo which evaluated the effect of adding new industrial flow to the existing system. On January 4, 2021, a State Revolving Fund (SRF) Planning and Design Loan Intended Use Plan (IUP) application in the amount of $350,000 was submitted to the State for the "Catfish Creek Lift Station & Force Main Project (that) 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". On April 28, 2021, the City authorized Strand Task Order One, which provided for the development of a facility plan and design of the Old Mill road lift station to a 30% level. This level of design provided the City with a basis of design, a refined cost estimate, and the necessary information to allow the City to submit a facility Plan to IDNR to begin the SRF construction loan process. The 30% design followed the recommended improvement option identified in the January 7, 2021, memo regarding the results of the Catfish Creek Sanitary Sewer Interceptor system study, which evaluated the existing system capacity and identified improvements to ensure that it has adequate capacity for existing developments and for growth throughout the tributary area. The City of Dubuque submitted a facility plan to lowa Department of Natural Resources (IDNR), in May of 2021, for the construction of a 20 MGD sanitary sewer lift station and 30" dual force mains. The facility plan is based on the results of an intensive evaluation of the existing interceptor collection and pumping systems that transport sewage to the Water Resource Recovery Center (WRRC). Several options were considered, and the City chose to proceed with the design and construction of the Old Mill Road Lift Station and Force Main Project, a recommended option. At the June 7, 2021, the City Council meeting, the City Council approved the facility plan and IUP application for the Old Mill Rd. Lift Station and Force Main Project. Part of the SRF process is to complete an environmental review for the effected project area, which is conducted by IDNR staff along with other state agencies. One of the items that is looked at is the history of the area to determine the historical significance of the area, if any. The Office of the State Archaeologist (OSA) conducted a phase I archaeological study, due to a portion of the project alignment running through the old Town of Rockdale. Some artifacts, from the settlement, were recovered and it was determined that a more in- depth phase II study was warranted. OSA and the State Historic Preservation Office (SHPO) directed the City to complete a Phase II archeological study. Due to the results of the phase II study, it was determined that an alternate alignment needed to be evaluated to avoid the Town of Rockdale. Once the alternate alignment was selected, a second phase II archeological study was completed for the alternate alignment. The alternate alignment was cleared by SHPO and the design was able to be completed for the entire project. Page 624 of 2490 Due to available funding and the funding being spread over five fiscal years, a revised facility plan was submitted in May of 2024, that split the project into two phases. The first phase being the lift station and site development and the second phase being the force main, from the lift station to WRRC, along with the force main structures. The revised facility plan was approved by IDNR in June of 2024. The phased approach allowed the City to begin with the longest duration portion of the project, currently under construction, and start the second phase of the project a year later, when the remainder of the funding becomes available in FY26 and FY27. The completion for both phases is December 18, 2026. DISCUSSION The Old Mill Road Lift Station and Force Main Project is the first of several improvements that are needed, within the Catfish Creek Interceptor Sewer system, to provide adequate capacity to serve existing and future development within the City, and to allow for future additional flow from future growth areas. Once constructed and in service, the 20 MGD Old Mill Road Lift Station will intercept over 80% of the flow which is currently conveyed to the undersized 8 MGD Catfish Creek Lift Station. With the reduction in flow coming from the Catfish Creek Interceptor System (West end of town), the Catfish Creek Lift Station will then be primarily dedicated to the Key West area and the growth areas along US Highway 151/61, to the airport, which is served by the Granger Creek Interceptor Sewer. Currently, IDNR has issued sanitary sewer permits with peak flows totaling approximately 3.5 MGD, for the areas south of town, since 2017. The reduction in flow from the Catfish Creek Interceptor System will provide the Catfish Creek Lift Station with enough capacity to adequately serve the Granger Creek sewer shed into the near future. The State Revolving Fund loan will have a variable interest rate of 2.84% plus a servicing fee of 0.25%, a twenty-year term, 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 16, 2025, for a public hearing on the proposed issuance not to exceed $15 million in Sewer Revenue Capital Loan Notes (State Revolving Loan Fund Program) for the Old Mill Rd. Lift Station and Force Main Project— Phase II. Attachments cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Brian DeMoss, Finance Manager Page 625 of 2490 DORSEY Y L May 27, 2025 VIA EMAIL Jenny Larson Chief Financial Officer Dubuque, Iowa Re: $15,000,000 SRF Sewer Revenue Loan and Disbursement Agreement File No. 430411-19 Dear Jenny: We have prepared and attach proceedings for use at the June 2, 2025, City Council meeting to set June 16, 2025, as the date for a hearing on the proposal to enter into the SRF Sewer Revenue Loan and Disbursement Agreement (the "Agreement") in connection with the Old Mill Lift Station and Force Main Project - Phase II. The documents attached include the following items: 1. Resolution fixing the date of ineeting 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 effectivel�published is June 12, 2025. As soon as the notice appears in the newspaper, please have a copy scanned and emailed to me. 8oi Grand Avenue�Suite qioo�Des Moines,IA I 5o3o9-HOOz I T 515•z83•1o00�dorsey.com Page 626 of 2490 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 Todd Irwin Tionna Pooler Tracy Scebold Tony Toigo Lee Wagner DORSEY&WHITNEY LLP Page 627 of 2490 Dubuque/ 430411-19/1""/z - Sewer Rev MINUTES TO SET DATE FOR HEARING ON ENTERING INTO A LOAN AND DISBURSEMENT AGREEMENT 430411-19 (N/I) Dubuque, Iowa June 2, 2025 The City Council of the City of Dubuque, Iowa, met on June 2, 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: Present: Mayor Cavanagh, Council Members Farber, Jones, Resnick, Roussell, Sprank, Wethal Absent: - - Other Business- - MOTION TO APPROVE RESOLUTION Council Member Roussell introduced the resolution hereinafter next set out and moved its adoption, seconded by Council Member Sprank; 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: Cavanagh, Roussell, Wethal, Sprank, Resnick, Farber, Jones Nays: Whereupon, the Mayor declared the resolution duly adopted as follows: -1- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque/ 430411-19/1"'h - Sewer Rev RESOLUTION NO. 189-25 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 $15,000,000 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 $15,000,000, 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 16, 2025, at 6:30 p.m., at the Historic Federal Building, 350 W. 61h 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/4304ll-19/15t1h-Sewer Rev NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS TO ENTER INTO A LOAN AND DISBURSEMENT AGREEMENT IN A PRINCIPAL AMOLTNT NOT TO EXCEED $15,000,000 (SEWER REVENUE) The City Council of the City of Dubuque, Iowa, will meet on June 16, 2025, 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 $15,000,000 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&WffiTNEY LLP,ATTORNEYS,DES MOINES,IOWA Page 630 of 2490 Dubuque/ 43041 l-l9/1 "/z - 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 $15,000,000, (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 June 2, 2025. ayor Attest: aA� 04 � W4- City Clerk - • Other Business - On motion and vote, the meeting adjourned. dIR-ayor Attest: City Clerk -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOMES, IOWA Dubuque/ 430411-19/1" '/2 -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 day of Jun , 2025. City Clerk -5- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque/ 43041 1-19/1"'/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 Dann S rank , Council Member/Mayor Pro Tern Susan Farber , Council Member Ric Jones , Council Member David Resnick , Council Member Roussell , Council Member KLty 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, DES MINES, IOWA Dubuque/ 430411-19/1 "/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. WITNESS MY HAND this 3 day of _,TWIf , 2025. City Clerk -7- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque/4304ll-19/15t1h-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: Principal Amount Date Type Outstandin� 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 , 2025. City Clerk -8- DORSEY&WffiTNEY LLP,ATTORNEYS,DES MOINES,IOWA Page 635 of 2490 Dubuque/4304ll-19/15t1h-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 ineeting 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&WffiTNEY LLP,ATTORNEYS,DES MOINES,IOWA Page 636 of 2490