Reallocation of General Obligation Bonds Series 2014B_Initiate Copyrighted
May 15, 2017
City of Dubuque Items to be set for Public Hearing # 2.
ITEM TITLE: Reallocation of General Obligation Bonds Series 2014B
SUMMARY: City Manager recommending setting a public hearing for
June 5, 2017, on a proposal to reallocate not-to-exceed
$80,000 of the unspent proceeds of the General Obligation
Bond Series 2014B from the City Hall improvements
project to fund the HVAC improvements of the Historic
Federal Building located at 350 West 6th Street.
RESOLUTION Fixing date for a meeting on the proposal to
reallocate certain unspent proceeds of the General
Obligation Bonds, Series 20148, of the City of Dubuque,
Iowa, and providing for publication of notice thereof
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s), Set Public Hearing for June 5, 2017
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Building Services Memo Supporting Documentation
Resolution Resolutions
THE CITY OF Dubuque
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Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings for Reallocation of General Obligation Bonds Series 2014B
DATE: May 10, 2017
Budget Director Jennifer Larson recommends setting a public hearing for June 5, 2017,
on a proposal to reallocate not to exceed $80,000 of the unspent proceeds of the
General Obligation Bond Series 2014B from the City Hall improvements project to fund
the HVAC improvements of the Historic Federal Building located at 350 West 6t" Street.
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
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant Finance Director
Jennifer Larson, Budget Director
Jean Nachtman, Finance Director
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Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
SUBJECT: Proceedings for Reallocation of General Obligation Bonds Series 2014B
DATE: May 10, 2017
INTRODUCTION
The purpose of this memorandum is to provide suggested proceedings for holding a
public hearing on the reallocation of General Obligation Bond Series 20148.
DISCUSSION
The City of Dubuque issued General Obligation Bonds ($18,835,000) in November of
2014 for the purpose, among other things, of paying the costs of acquisition,
construction, reconstruction, and repair, and equipping of waterworks, water mains, and
extensions, and real and personal property, useful for providing potable water to
residents of a city, acquisition, improvement and equipping of recreation grounds,
including the Bunker Hill Golf course and the concrete skate park, and improvements to
City Hall, transit bus stops, Fire Station #2 and Ham House, general corporate
purposes.
There are unspent bond proceeds related to City Hall improvements project. The City
Hall HVAC system has had many improvements over the course of the last five to
seven years and the current life expectancy of equipment is greater than five years.
Additionally, many other improvement projects have been completed at City Hall and
these funds can be used for greater needs in other City buildings.
The Historic Federal Building recently had a compressor unit go out. This unit is one of
four compressors that operates in conjunction with the chiller units which provide
cooling to the Federal Building. The Federal building has two chiller units, each of which
have two compressor units. The compressor unit went out due to two electrical contacts
in a three-phase electrical system getting stuck shut, then welded together and shorted
out the compressor unit. The compressor unit that needs to be replaced is only five
years old, and when it was replaced last time it was because of the same issue with
contacts getting stuck shut and welded together. By installing new chiller units, the
existing compressors will be removed because the new equipment is constructed as
one overall unit with overcurrent protection built into the equipment to avoid the
possibility of a short. New chiller units will also be extremely more efficient to operate
and reduce our energy consumption compared to what we use currently. Installing new
chiller units completely removes the risk of the equipment shorting out, due to
overcurrent protection installed within the equipment to avoid this risk.
The Historic Federal Building currently does not have any funds available for the
replacement of any HVAC related equipment.
These proceedings are required to reallocate the balance of the bonds not to exceed
$80,000 of the unused bond funds from the General Obligation Bond Series 2014B from
the improvements to City Hall to fund the HVAC improvements of the Historic Federal
Building located at 350 West 6th Street.
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolution fixing the date of June
5, 2017 for a public hearing on the proposal to reallocate unspent bond proceeds of the
General Obligation Series 2014B and providing for publication of notice.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Jean Nachtman, Finance Director
THE COF Dubuque City of Dubuque
F Building Services Department
DtUB AmCdGaCilY 50 west 13 th, Io Street
Dubuque, Iowa 52001
VIII'' Office: 563-589-4150
Fax: 563-690-6687
TTY 563-690-6678
Masterpiece on the Mississippi zoW-U1z•zo13 Email:building@cityofdubuque.org
TO: Michael C. Van Milligen, City Manager
FROM: Todd Carr, Building Services Manager
SUBJECT: Request to Reallocate Series 2014B General Obligation Bond Funds
DATE: May 5th, 2017
INTRODUCTION
The purpose of this memo is to request the reallocation of the Series 2014B General
Obligation funding that was partially allocated to the City Hall capital improvement
projects.
BACKGROUND
In 2014, the net proceeds from the sale of Series 2014B General Obligation Bond that
was allocated for City Hall capital improvement projects was $203,282. The current
balance of the bond is $149,225, however $49,000 is committed for the HVAC capital
improvement project that was bid and awaiting approval for contract signing. Since the
issuance of these bonds, the following City Hall projects have been completed: City Hall
Electrical Upgrade, Air Handler Replacement in Conference Room B, Cooling Tower
Upgrades, Building Services Department Remodel, and the Personnel Department
Renovation will take place in FY17. The Personnel Department scope of work will
include re-carpeting the corridor and stairway leading to the basement of City Hall,
along with re-building the half-wall to accommodate a new ADA service counter and
secured entry for Personnel Department.
Upon completion of the most recent HVAC project that will begin in May of 2017, all City
Hall HVAC equipment will be less than ten years old except for the main boiler which
was installed in 2005.
Although not part of this bond or proceeds, other most recent City Hall projects that
were completed include the re-roofing project, exterior tuckpointing project, and the fire
escape restoration project.
DISCUSSION
The Historic Federal Building recently had a compressor unit go out. This unit is one of
four compressors that operates in conjunction with the chiller units which provide
cooling to the Federal Building. The Federal building has two chiller units, each of which
have two compressor units. The compressor unit went out due to two electrical contacts
in a three-phase electrical system getting stuck shut, then welded together and shorted
out the compressor unit. The compressor unit that needs to be replaced is only five
years old, and when it was replaced last time it was because of the same issue with
contacts getting stuck shut and welded together.
The cost of a new compressor unit is approximately $10,000 to $13,000, and there are
four compressor units in this system, so a total of$40,000 to $52,000 in compressor
units. If the current compressor unit is replaced, the City will have spent approximately
$21 ,000 in the past five years on compressors. Installing a new compressor does not
solve the root cause of many other issues, but most importantly provides no overcurrent
protection if the contacts get stuck shut and then short out a compressor.
The two chiller units were installed in 1984 and are now over thirty years old. There
have been many service calls throughout a cooling season on these two chiller units.
There is no more life expectancy left in these chiller units, it is a matter of time before
they need to be replaced. The cost of service repairs is increasing as is the cost of the
parts due to the age of these units. From an energy consumption perspective, the
current chiller units and compressors are not efficient. New chiller units will be extremely
more efficient to operate and reduce the energy consumption compared to what is used
currently.
The Building Services Department is currently seeking bids from four to five local
contractors to have the two chiller units replaced. By installing new chiller units, the
existing compressors will be removed because the new equipment is constructed as
one overall unit with overcurrent protection built into the equipment to avoid the
possibility of a short. New chiller units will also be extremely more efficient to operate
and reduce our energy consumption compared to what we use currently. Installing new
chiller units completely removes the risk of the equipment shorting out, due to
overcurrent protection installed within the equipment to avoid this risk.
I have additionally discussed and reviewed the current size of the chiller units versus
the size of our cooling tank, and considered the capacity of these chiller units if future
development of interior space were to take place. Currently the size of these chiller units
is fine with our current conditions and load and demand needed. If our cooling tower is
ever replaced in the future, it would get bigger, versus smaller, so the size of the chiller
units we have currently will work for future improvements on the cooling tower. If at
some point in the future the City or possibly a new tenant were to move into the Federal
Building and look to re-develop the area that the Post Office is vacating, we would then
need to add additional chiller units to accommodate the added load of the new space
and design. If a development like this was to move forward, we would then need to have
an energy assessment done to calculate the additional load for both the cooling tower
and the need for an additional chiller unit. This type of re-development in the future has
no effect on a decision today to replace our current two chiller units, nor would these
new units need to be upgraded or replaced with such a development.
2
CONCLUSION:
City Hall HVAC system has had many improvements over the course of the last five to
seven years and the current life expectancy of equipment is greater than five years.
Additionally, as mentioned above many other improvement projects have been
completed here at City Hall. The Historic Federal Building currently does not have any
funds available for the replacement of any HVAC related equipment. From a statistical
standpoint in terms of life expectancy for these current chiller units, there is nothing left,
and replacement is going to be needed soon. The replacement of these chiller units has
no effect on any future development of new office space at the Federal Building and the
new units would remain and be easily tied into any other upgrades that may be made in
the future.
The other project that was anticipated on being done at City Hall with these funds, was
a full ASHRAE compliant energy assessment of our building, along with possible
software upgrades to our HVAC monitoring system. This assessment would provide us
with a list of improvements that could be made to improve our energy consumption, as
well as provide us with anticipated equipment replacement dates or projections.
Additionally, this would provide improvement recommendations that could be made to
the existing systems in terms of performance for both climate control and efficiency.
Although this would be a benefit to facility maintenance, I do not find this to be a
necessity or an emergency. As mentioned above the equipment is modern for the most
part at City Hall, which provides energy efficient equipment and the current HVAC
software controls work effectively to control and manage energy usage. The software
controls are approximately five years old and were installed during the 2013 HVAC
upgrade project.
By choosing to install new chiller units we remove the risk of the equipment shorting out
in the future because the new equipment has overcurrent protection installed within the
unit to avoid this risk. The new equipment will be more efficient to operate, and we will
avoid costly repairs and maintenance expense trying to keep the old equipment running.
RECOMMENDATION
It is recommended to reallocate $80,000 of the Series 2014B General Obligation Bond
funds to be able to be used for HVAC capital improvement projects at the Historical
Federal Building, and specifically be used to replace the two current chiller units.
BUDGETIMPACT
The City has received three proposals to have the chiller units replaced, the cost of
each proposal is listed below.
Advantage Sheet Metal, Inc: $74,475
Geisler Brothers CO.: $106,125
Giese Sheet Metal Co., Inc: $123,900
3
CIP No. Reallocation of Funds I Reallocated Amount
3501045 Historic Federal Building 1 $80,000
ACTION TO BE TAKEN
I respectfully recommend setting a public hearing on the proposal to reallocate $80,000
of the Series 2014B General Obligation Bond funds to be used for HVAC capital
improvement project at the Historic Federal Building.
Todd Carr, Building Services Manager
CC: Jennifer Larson, Budget Director
Alvin Nash, Housing Department Director
Jean Nachtman, Finance Director
4
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of the City of Dubuque, Iowa.
Date of Meeting: May 15, 2017.
Time of Meeting: 6:00 o'clock P.M.
Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque,
Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for said
meeting is as follows:
• Resolution fixing date for a meeting on the proposal to reallocate certain
unspent proceeds of the General Obligation Bonds, Series 2014B, and
providing for publication of notice thereof
Such additional matters as are set forth on the additional 4 page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
City '(erk, Dubugi{e, Iowa
May 15, 2017
The City Council of Dubuque, Iowa, met in regular session, in the Historic Federal
Building, 350 West 6th Street, Dubuque, Iowa, at 6:00 o'clock P.M., on the above date.
There were present Mayor Roy D. Buol in the chair, and the following named Council
Members:
Joyce Connors, Luis Del Toro, Ric Jones, Kevin Lynch,
David Resnick, Jake Rios
Absent:
Council Member Lynch introduced the following Resolution entitled
"RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSAL TO
REALLOCATE CERTAIN UNSPENT PROCEEDS OF THE GENERAL
OBLIGATION BONDS, SERIES 2014B, OF THE CITY OF DUBUQUE, IOWA, AND
PROVIDING FOR PUBLICATION OF NOTICE THEREOF", and moved that the same
be adopted. Council Member Connors seconded the motion to adopt. The roll was called
and the vote was,
AYES: Jones, Connors, Resnick, Buol, Rios, Lynch, Del Toro
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 175-17
RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSAL
TO REALLOCATE CERTAIN UNSPENT PROCEEDS OF THE
GENERAL OBLIGATION BONDS, SERIES 2014B, OF THE CITY OF
DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF
NOTICE THEREOF
WHEREAS, pursuant to hearings duly held under Iowa Code Section 384.25 and a
resolution approved on December 1, 2014, the City Council of the City of Dubuque, Iowa
has previously issued its General Obligation Bonds, Series 2014B, in the aggregate
principal amount of $18,835,000 (the "Series 2014B Bonds"), for the purpose, among
other things, of paying the costs of acquisition, construction, reconstruction, and repair,
and equipping of waterworks, water mains, and extensions, and real and personal
property, useful for providing potable water to residents of a city, acquisition,
improvement and equipping of recreation grounds, including the Bunker Hill Golf course
and the concrete skate park, and improvements to City Hall, transit bus stops, Fire Station
#2 and Ham House, general corporate purposes; and
WHEREAS, certain proceeds of the Series 2014B Bonds remain unspent, and the
City Manager has recommended that not to exceed $80,000 of such unspent proceeds (the
"Unspent Proceeds") be applied for the purpose of funding the HVAC improvements of
the Historic Federal Building located at 350 West 6th Street in the amount of
approximately $80,000, (the "Project"); and
WHEREAS, there being no procedure specified under Iowa law for consideration
or approval of such a reallocation, it is hereby determined, pursuant to Section 364.6 of
the Code of Iowa, that the procedure set forth in Section 384.25 of the Code of Iowa
should apply to such proposal, and that a hearing be held upon the proposal to reallocate
the Unspent Proceeds to provide funds for the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That this Council meet in the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa, at 6:00 o'clock P.M., on the 5th day of June, 2017, for the purpose
of taking action on the matter of the proposed reallocation of the Unspent Proceeds of the
Series 2014B Bonds to provide funds to defray all or a portion of the costs of the Project.
Section 2. That the City Clerk is hereby directed to cause one publication to be
made of notice of said meeting, in a legal newspaper, printed wholly in the English
language, published at least once weekly, and having general circulation in said City, said
publication to be not less than four clear days nor more than twenty days before the date
of said public meeting.
Section 3. The notice of the proposed action shall be in substantially the following
form:
NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED
REALLOCATION OF CERTAIN UNSPENT PROCEEDS OF THE
GENERAL OBLIGATION BONDS, SERIES 2014B, OF THE CITY OF
DUBUQUE, IOWA, AND THE PUBLIC HEARING THEREON
PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa,
will hold a public hearing on the 5th day of June, 2017, at 6:00 o'clock P.M., in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at which meeting the
Council proposes to take additional action for the reallocation of certain unspent proceeds
of the General Obligation Bonds, Series 2014B, of the City of Dubuque, Iowa (together,
the "Bonds"), in the aggregate amount of not to exceed $80,000, in order to provide funds
to pay costs of funding the HVAC improvements of the Historic Federal Building located
at 350 West 6th Street in the amount of approximately $80,000. Any person interested
may appear at the public hearing, either orally or in writing, and be heard as to the
reallocation of said proceeds of the Bonds for the above purposes.
This Notice is given by order of the Council of Dubuque, Iowa, as provided by
Sections 364.6 and 384.25 of the Code of Iowa, as amended.
Dated this 19th day of May, 2017.
Kevin S. Fimstahl
City Clerk of Dubuque, Iowa
(End of Notice)
PASSED AND APPROVED this 15th day of May, 2017.
Mayor
ATTEST:
CERTIFICATE
STATE OF IOWA
) SS
COUNTY OF DUBUQUE
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is
a true and complete copy of the portion of the corporate records of said Municipality
showing proceedings of the Council, and the same is a true and complete copy of the
action taken by said Council with respect to said matter at the meeting held on the date
indicated in the attachment, which proceedings remain in full force and effect, and have
not been amended or rescinded in any way; that meeting and all action thereat was duly
and publicly held in accordance with a notice of meeting and tentative agenda, a copy of
which was timely served on each member of the Council and posted on a bulletin board
or other prominent place easily accessible to the public and clearly designated for that
purpose at the principal office of the Council (a copy of the face sheet of said agenda
being attached hereto) pursuant to the local rules of the Council and the provisions of
Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at
least twenty-four hours prior to the commencement of the meeting as required by said
law and with members of the public present in attendance; I further certify that the
individuals named therein were on the date thereof duly and lawfully possessed of their
respective city offices as indicated therein, that no Council vacancy existed except as may
be stated in said proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City
or the right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of said Municipality hereto affixed this 16th day
of May, 2017.
City Cleric • ubuque, Iowa
ROLL CALL ORDER FOR MEETING OF
May 15, 2017
Jones, Connors, Resnick, Buol, Rios, Lynch, Del Toro
CITY OF DUBUQUE, IOWA
CITY COUNCIL MEETING
Historic Federal Building
350 W. 6th Street
May 15, 2017
Council meetings are video streamed live and archived at www.cityofdubuque.org/media and
on Dubuque's CityChannel on the Mediacom cable system at cable channel 8 and digital 117.2
REGULAR SESSION
6:00 PM
PLEDGE OF ALLEGIANCE
PRESENTATION(S)
1. Introduction of Leisure Services Rec-n-Roll Events Trailer
The Leisure Services Rec-n- Roll events trailer will be on display outside the Historic Federal
Building on Monday, May 15, from 5:15 to 6:00 p.m. prior to the City Council meeting.
PROCLAMATION(S)
1. Apples for Students Months (June/July 2017)
2. Play Ball Summer (June -August 2017)
3. Revive Civility and Respect Month (May 2017) Added
Late
CONSENT ITEMS
The consent agenda items are considered to be routine and non -controversial and all consent items
will be normally voted upon in a single motion without any separate discussion on a particular item. If
you would like to discuss one of the Consent Items, please go to the microphone and be recognized
by the Mayor and state the item you would like removed from the Consent Agenda for separate
discussion and consideration.
1. Minutes and Reports Submitted
City Council Proceedings of 5/1, 5/8; Civil Service Commission of 3/28, 5/3; Dubuque County Emergency
Management Commission of 11/1/16; 2/15/17, 3/21/17; Human Rights Commission of 4/10/17; Investment
Oversight Advisory Commission of 4/26; Library Board of Trustees of 3/16; Library Board of Trustees
Council update #160 of 4/27; Zoning Advisory Commission of 5/3; Proof of Publication for City Council
Proceedings of 4/17, 4/24, 5/1; Proof of Publication of List of Claims and Summary of Revenues for
Month Ending 3/31
Suggested Disposition: Receive and File
2. Notice of Claims and Suits
Pg. 1