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$15,000,000 Sewer Revenue Capital Loan Notes (State Revolving Loan Fund Program) Old Mill Rd. Lift Station Project – Phase 2City of Dubuque City Council PUBLIC HEARINGS # 8. Copyrighted June 16, 2025 ITEM TITLE: Proceedings for Public Hearing 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: 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 $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, and City Manager recommending approval. RESOLUTION Taking additional action on proposal to enter into a Sewer Revenue Loan and Disbursement Agreement SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo Old MITI Rd LS Phase 2 SRF Public Hearing_MVM Memo_2025_06_10 2. Old MITI Rd Phase 2 SRF Public Hearing_Staff memo_2025_06_10 3. 2nd Half Hrg Only Sewer Rev LDA (Old Mill Phase II) (Dubuque #19 2025)-v1 Page 680 of 1053 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-Anerin City I II 2007.2012.2013 2017*2019 SUBJECT: Proceedings for Public Hearing 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: June 10, 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 $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. 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. 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. Page 681 of 1053 I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jml Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jennifer Larson, Chief Financial Officer Gus Psihoyos, City Engineer Brian DeMoss, Finance Manager 2 Page 682 of 1053 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 for Public Hearing 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: June 10, 2025 INTRODUCTION The purpose of this memorandum is to provide suggested proceedings for 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 683 of 1053 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 Iowa 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 684 of 1053 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 resolutions. Attachments cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Brian DeMoss, Finance Manager Page 685 of 1053 DO R S EY DORSEY+WHITNEY LLP June 10, 2025 VIA EMAIL Jenny Larson Chief Financial Officer Dubuque, Iowa Re: $15,000,000 SRF Sewer Revenue Loan and Disbursement Agreement Our File No. 430411-19 Dear Jenny: We have prepared and attach proceedings for the June 16, 2025, City Council meeting related to the public hearing and additional action on the Sewer Revenue Loan and Disbursement Agreement (the "Agreement") in connection with the Old Mill Lift Station and Force Main Project - Phase II. 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 16, 2025, the City Council should meet as scheduled and hold the hearing on its intention 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 Todd Irwin Tionna Pooler Tracy Scebold Tony Toigo Lee Wagner 8oi Grand Avenue I Suite 4i00 I Des Moines, IA 150309-8002 IT 53-5.283.3-000 I dorsey.com Page 686 of 1053 Dubuque / 43041 1-19 / 2nd'h Hrg Only Sewer Rev (Old Mill Phase II) (Hearing — Sewer Revenue) 430411-19 Dubuque, Iowa June 16, 2025 The City Council of the City of Dubuque, Iowa, met on June 16, 2025, at 6:30 p.m., at the Historic Federal Building, 350 W. 6th 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: mvor Cavo�no,4i' COuoc' I I IP m 6rS Absent: C.ound I i1Cfyt6-r ` 0neS • • 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 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. MOTION TO APPROVE RESOLUTION After due consideration and discussion, Council Member ,jpfc\n k introduced the following resolution and moved its adoption, seconded by Council Member WC kk 011 . The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted: Ayes: we- h di 6p,van nc� RoU 55e h l Resn C k, & rr, Sprgn. )\ Nays: Whereupon, the Mayor declared the resolution duly adopted, as follows: DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque / 430411-19 / 2nd'/z Hrg Only Sewer Rev (Old Mill Phase 11) RESOLUTION NO. 227-25 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 $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, and has published notice of the proposed action and has held a hearing thereon on June 16, 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 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 / 430411-19 / 2nd 'h Hrg Only Sewer Rev (Old Mill Phase 11) 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 16, 2025. Mayor Attest: ALW City Clerk - - Other Business- - On motion and vote, the meeting adjourned. or F;�r4 Attest: City Clerk -3 - DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque / 43041 1-19 / 2nd'/z Hrg Only Sewer Rev (Old Mill Phase 11) 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 Sewer Revenue Loan and Disbursement Agreement in a principal amount not to exceed $15,000,000. WITNESS MY HAND this day of -J U41'e 52025. 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: 06/06/2025 and for which the charge is 31.35 Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this 6th day of June, 2025 OPOA(& JANET K. PAPE ( 7 Commission Number 199659 My Commission Expires o vo 12/11/2025 Ad text : CITY OF DUBUQUE, IOWA OFFICIAL NOTICE NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS TO ENTER INTO A LOAN AND DISBURSEMENT AGREEMENT IN A PRINCIPAL AMOUNT 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 Citys 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 6/6