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 Copyrighted
June 2, 2025
City of Dubuque PUBLIC HEARINGS # 7.
City Council
ITEM TITLE: Proceedings for Public Hearing 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: Proof of publication on notice of public hearing to consider
City Council approval of the suggested proceedings for 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, and Clty Manager
recommending approval.
RESOLUTION Taking additional action on proposal to enter
into a Water Revenue Loan and Disbursement Agreement
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTAC H M ENTS:
1. MVM Memo Private Lead Lines SRF Public Hearing_MVM memo_2025_05_28
2. 2nd Half Hrg Only Water Rev LDA (Lead Service Line) (Dubuque #20 2025)-v1
3. Private Lead Lines SRF Public Hearing_Staff memo_2025_05_28
Page 981 of 2490
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings for Public Hearing 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 28, 2025
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
$2,000,000 Water Revenue Capital Loan Notes (State Revolving Loan Fund Program)
Private Lead Service Line Replacement Pilot Program — Phase I. 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 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
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 lowa
Department of Natural Resources' State Revolving Fund (lowa SRF) program, with 49%
of construction costs being forgivable.
The State Revolving Fund loan will have an interest rate of 2.84%, a maturity date of June
1, 2045, and will be abated from the water fund.
Page 982 of 2490
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 lowa 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 Water 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.
�Jv�'n"'� �y,�,t
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
2
Page 983 of 2490
D4RSEY
May 28,2025
VIA EMAIL
Jenny Larson
Chief Financial Officer
Dubuque,Iowa
Re: $2,000,000 SRF Water Revenue Loan and Disbursement Agreement
Our File No. 430411-20
Dear Jenny:
We have prepared and attach proceedings for the June 2, 2025, City Council meeting related to the
public hearing and additional action on the Water Revenue Loan and Disbursement Agreement (the
"Agreement")in connection with the Lead Service Line Replacement-Phase 1 Project.
The proceedings attached include the following items:
1. Minutes of the meeting covering the public hearing, followed by the resolution taking
additional action in connection with the Agreement. This resolution simply sets forth the City Council's
determination to enter into the Agreement in the future and its adoption constitutes the "additional action"
required by the Iowa Code.
2. Attestation Certificate with respect to the validity of the transcript.
On June 2, 2025, the Ciry Council should meet as scheduled and hold the hearing on its intenrion to
enter into the Agreement. The minutes as drafted assume that no objections will be filed or made.
Please return one fully executed copy of these proceedings to our office as soon as possible. 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
8oi Grand Avenue�Suite 4100�Des Moines,IA I 5o3�9-HOOz I T 515•z83•1o00�dorsey.com
Page 984 of 2490
Dubuque / 430411-20 / 2nd Yh Hrg Only Water Rev (Lead service Line)
(Hearing — Water Revenue)
430411-20
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. 6t11 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 Cavanagh; Council Members Farber, Jones, Resnick, Roussell, Sprank,
Wethal
Absent:
• • Other Business-
PUBLIC HEARING
This being the time and place specified for holding the public hearing and taking action on
the proposal to enter into a Water 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.
MOTION TO APPROVE RESOLUTION
After due consideration and discussion, Council Member Sprank introduced the following
resolution and moved its adoption, seconded by Council Member Jones. The Mayor put the
question upon the adoption of said resolution, and the roll being called, the following Council
Members voted:
Ayes: Cavanagh, Roussell, Wethal, Sprank, Resnick, Farber, Jones
Nays:
Whereupon, the Mayor declared the resolution duly adopted, as follows:
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Dubuque / 430411-20 / 2nd'/z Hrg Only Water Rev (Lead Service Line)
RESOLUTION NO. 200-25
Resolution taking additional action on proposal to enter into a Water Revenue Loan
and Disbursement Agreement
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 in prior proceedings of the Council, 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 has heretofore proposed to contract indebtedness and enter into a
certain 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 3 84.24A 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 June 2, 2025;
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 Water 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 / 430411-20 / 2nd'/z Hrg Only Water Rev (Lead Service Line)
Section 3. 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.
4�ayyor
Attest:
City Clerk
- - Other Business- -
On motion and vote, the meeting adjourned.
Mayor
Attest:
0i.. jx,City Clerk
-3-
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Dubuque / 430411-20 / 2nd'/z Hrg Only Water Rev (Lead Service Line)
ATTESTATION CERTIFICATE:
STATE OF IOWA
DUBUQUE COUNTY SS:
CITY OF DUBUQUE
I, 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 Water Revenue Loan and Disbursement Agreement in a
principal amount not to exceed $2,000,000.
WITNESS MY HAND this 3 day of jkop— 52025.
City Clerk
-4-
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
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TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
SUBJECT: Proceedings for Public Hearing 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 28, 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 lowa Department
of Natural Resources' State Revolving Fund (lowa SRF) program, with 49% of
construction costs being forgivable.
Page 989 of 2490
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 lowa 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 2.84%, a maturity date of June
1, 2045, and will be abated from the water fund.
ACTION TO BE TAKEN
I respectfully recommend the adoption of the enclosed resolution 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 990 of 2490