Water Revenue Capital Loan Notes (SRF)_Vernon and Barrington Lakes Systems_Initiate Copyrighted
June 5, 2017
City of Dubuque Items to be set for Public Hearing # 5.
ITEM TITLE: Water Revenue Capital Loan Notes - (State Revolving Loan
Fund Program)
SUMMARY: City Manager recommending that the City Council set a
public hearing for June 19, 2017 on the proposition of
selling not to exceed $10,200,000 in Water Revenue
Capital Loan Notes (State Revolving Loan Fund Program)
for the purchase and improvements associated with the
City of Dubuque's acquisition of the Vernon and Barrington
Lakes water systems.
RESOLUTION Fixing date for a meeting on the
authorization of a Loan and Disbursement Agreement and
the issuance of not to exceed $10,200,000 Water Revenue
Capital Loan Notes 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 19, 2017
ATTACHMENTS:
Description Type
Water Re\enue Capital Loan Notes-MVM Memo City Manager Memo
Memo to Set Public Hearing $10.2 Staff Memo
Letter of Instruction from Ahlers $10.2 Supporting Documentation
Resolution for$10.2 Water SRF Resolutions
THE CITY OF Dubuque
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Masterpiece 012 the Mississippi 2007.2012«2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$10,200,000 Water Revenue Capital Loan Notes (State Revolving Loan
Fund Program)
DATE: May 26, 2017
Finance Director Jean Nachtman recommends the City Council set a public hearing for
June 19 on the proposition of selling not to exceed $10,200,000 in Water Revenue
Capital Loan Notes (State Revolving Loan Fund Program) for the purchase and
improvements associated with the City of Dubuque's acquisition of the Vernon and
Barrington Lakes water systems.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen `
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Jean Nachtman, Finance Director
Maureen Quann, Assistant City Attorney
Jennifer Larson, Budget Director
Denise Ihrig, Water Department Manager
Gus Psihoyos, City Engineer
Alexis Steger, Senior Budget Analyst
THE CITY OF Dubuque
UBgkE 111-America III
I.
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael C. Van Milligen, City Manger
FROM: Jean Nachtman, Finance Director
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$10,200,000 Water Revenue Capital Loan Notes (State Revolving Loan
Fund Program
DATE: May 25, 2017
INTRODUCTION:
The purpose of this memorandum is to provide suggested proceeding for a public hearing
on the issuance of a not to exceed $10,200,000 Water Revenue Capital Loan Notes. A
letter from attorney Kristin Cooper detailing information on the public hearing is enclosed.
DISCUSSION
In December 2016, the City of Dubuque purchased the Vernon Water Tower, Vernon
water system and the Barrington Lakes water system from Central Iowa Water Association
(CIWA). The intent of the City's purchase was to assist these communities in becoming
compliant with Iowa Department of Natural Resources (IDNR) standards and provide the
necessary back-up water supply and fire suppression by connecting them directly to the
City's water supply. The City is honoring the agreement with CIWA to meet the IDNR
water permits for these two systems in preparing plans to construct a water supply
connection from the City of Dubuque's water system to Vernon and Barrington Lakes. The
IDNR water permit required CIWA to provide a back-up or secondary water supply no later
than December 31, 2016, however following the City's recent acquisition, the IDNR has
granted a one year time extension to provide the adequate back up. The IDNR requires
the two water systems be provided with a back-up or secondary water supply no later than
December 31, 2017. The intent of the City is to provide the primary water supply, which
has multiple back-up sources, and abandon the current primary water supply wells located
in Vernon and Barrington Lakes.
For the City to meet the strict IDNR water operating permit connection completion date, it
was necessary for the City to seek financial and engineering assistance. The City turned
to the IDNR State Revolving Fund (Iowa SRF) program and hired IIW, P.C. consulting
engineers to prepare loan documents to secure funding for the project. On December 1,
20161 IIW, P.C. submitted the necessary preliminary engineering report, intended use plan
application, archeological and environmental assessment, and the self- assessment Iowa
Water System Viability documents to request the necessary funding. IIW, P.C. was further
retained to complete the final design plans, specification, and contract documents for
construction. They have completed the design and have prepared the plans for bidding
and IDNR construction permit submittal for the English Mill Road pump station and water
main extending from the pump station to North Cascade Road and Highway 20; the
connection location for the Vernon water system to City of Dubuque water. A final section
of water main and pressure station design to serve Barrington Lakes, is currently in the
process of final design. IIW, P.C. working with City of Dubuque's water department staff
have prepared construction plans providing for the connection of the City's water supply to
the Vernon area, and are in the final stages of design for the Barrington Lakes water
system connection. The project is scheduled to be bid in three separate contracts to
accommodate the December 31 , 2017 schedule. The contracts are grouped to minimize
possible delays and maximize parts and material delivery times to meet the completion
schedule.
Contract A: English Mill Road & North Cascade Road Water Main Extension
The extent of the work consists of the construction of a 12-inch water main from near the
intersection of Stone Valley Drive and English Mill Road to the south to North Cascade
Road and along North Cascade Road to the west to near the intersection of Highway 20. A
water main extension into Barrington Lakes Subdivision at Barrington Drive along with a
pressure control station will be included in the project. The project consists of
approximately 11 ,000 LF of 12-inch water main, including approximately 875 LF of 12-inch
DIP and 10,125 LF of 12-inch PVC. Portions of the PVC water main will require directional
drilling. The project also includes various water main appurtenances including: fittings,
resilient seat gate valves, fire hydrants, mechanical and push-on joint restraints, etc. Rock
is anticipated to be encountered for the water main installation along portions of the
proposed water main alignment. Erosion control including silt fence, rolled erosion control
product, topsoil and removal and replacement, and seeding. Traffic control is included in
the project to maintain a safe work site for both the Contractor and the public. Coordination
with another project in the same general area associated with the project will be required.
Contract B: English Mill Pumping Facility
The extent of the work involved in the City of Dubuque, Iowa Water System Improvements
2017 Contract B: English Mill Road Pumping Facility project consists of the construction of
a new pumping facility create a new pressure zone (Zone 7) in the City of Dubuque's
distribution system. The project consists of various components, the major items being:
the construction of a new 40'x50' block and brick building, with two 125 HP booster
pumps, DIP process piping, electrical, plumbing and mechanical components, standby
power and site work (including PCC parking and driveway, site grading, fencing, seeding
and 12 inch DIP water main installation including valves and fittings). Coordination with
another project in the same general area associated with the project will be required.
Contract C: Highway 20 Water Main Extension is in the process of final design and will be
bid later, but still complying with the IDNR December 31 , 2017 completion date.
ACTION TO BE TAKEN
I respectfully recommend the adoption of the enclosed resolution fixing the date of June
1 gth for a public hearing on the proposition of selling not to exceed $10,200,000 in Water
Revenue Capital Loan Notes (State Revolving Loan Fund Program) for the purchase and
improvements associated with the City of Dubuque's acquisition of the Vernon and
Barrington Lakes water systems.
Attachments
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manger
Jenny Larson, Budget Director
Ahlers&Cooney,P.C.
IA H L E R S COONEY Attorneys at Law
100 Court Avenue, Suite 600
A T T O R N E Y S Des Moines, Iowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
Kristin B. Cooper
515.246.0330
kcooper@ahlerslaw.com
May 24, 2017
Ms. Jenny Larson
Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
RE: Not To Exceed $10,200,000 Water Revenue Capital Loan Notes (Iowa
Drinking Water Facilities Financing Program)
Dear Jenny:
We have now prepared and are enclosing herewith suggested proceedings to be acted
upon by the City Council in fixing the date of a meeting on the proposition to issue the above
mentioned Capital Loan Note and ordering publication of a notice of hearing consistent with the
provisions of Code Sections 384.24A and 384.83.
As you may know, the borrowing of loan funds by the City through the Iowa Drinking
Water Facilities Financing Program ("DWSRF Program") involves the same procedures
applicable to the issuance and sale of municipal bonds generally. In this instancr�;the Iowa
Finance Authority (the "Authority") has agreed to make the City a low-interest loan under the
terms of a Loan and Disbursement Agreement, which will be secured and evidenced by a Water
Revenue Capital Loan Note that will be issued to the Authority at the time the loan is closed.
The Authority has advised that all Revolving Fund loans are subject to additional
procedural requirements, most notably - compliance with prevailing wage (Davis-Bacon)
provisions. We'll coordinate with the Authority on your behalf to properly document this loan
program, but will defer to your engineers for contract compliance requirements.
Publication Requirement—Notice of Hearing.
Notice of this meeting must be published at least once in a legal newspaper, printed
wholly in the English language, published at least once weekly, and having general circulation in
the City. The date of publication is to be not less than four clear da s nor more than twenty days
before the date of said public meeting. In computing time,the date of publication should be
excluded. If the last day falls on Sunday, the whole of the following Monday should be
excluded.
WISHARD & BAILY - 1888; GUERNSEY & BAILY - 1893; GAILY & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER,
AHLERS & COONEY - 1950; AHLERS, COONEY, DORWEILER, ALLBEE, HAYNIE & SMITH - 1974; AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. - 1990
May 24, 2017
Page 2
Also enclosed is an extra copy of the proceedings to be filled in as the original and
certified back to this office, together with the publisher's affidavit of publication of the notice of
hearing. We are also enclosing an extra copy of the notice of hearing to be delivered to the
newspaper for publication purposes. A certificate to attest the proceedings is also enclosed.
Should you have any questions concerning the enclosed proceedings or the DWSRF
Program, please don't hesitate to contact me.
Very truly yours,
Ahlers & Cooney, P.C.
Kri tin Billingsley Cooper
FOR THE FIRM
KBC:seb
Enclosures
cc: Alexis Steger, Senior Budget Analyst, City of Dubuque
Jean Nachtman, Finance Director, City of Dubuque
Tami Lansing, Assistant Finance Director, City of Dubuque
Tionna Pooler, Independent Public Advisors, LLC
01366757-1\10422-182
ITEMS TO INCLUDE ON AGENDA
CITY OF DUBUQUE, IOWA
Not to Exceed $10,200,000 Water Revenue Capital Loan Notes (SRF).
• Resolution fixing date for a meeting on the proposition to authorize a Loan and
Disbursement Agreement and the issuance of Notes to evidence the obligations of the
City thereunder..
NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE
CHAPTER 21 AND THE LOCAL RULES OF THE CITY.
June 5, 2017
The City Council of the City of Dubuque, State of 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:
1
Council Member Lynch introduced the following Resolution entitled "RESOLUTION
FIXING DATE FOR A MEETING ON THE AUTHORIZATION OF A LOAN AND
DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $10,200,000
WATER REVENUE CAPITAL LOAN NOTES 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: Rios, Resnick, Buol, Connors, Lynch, Del Toro, Jones
NAYS:
Whereupon, the Mayor declared the Resolution duly adopted as follows:
RESOLUTION NO. 199-17
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AND DISBURSEMENT
AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED
$10,200,000 WATER REVENUE CAPITAL LOAN NOTES OF
THE CITY OF DUBUQUE, IOWA, AND PROVIDING FOR
PUBLICATION OF NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa should
provide for the authorization of a Loan and Disbursement Agreement and the issuance of Water
Revenue Capital Loan Notes, in the amount of not to exceed $10,200,000, as authorized by
Sections 384.24A and 384.83, Code of Iowa, as amended, for the purpose of providing funds to
pay costs as hereinafter described; and
WHEREAS, the City has applied for a loan through the Iowa Drinking Water Facilities
Financing Program pursuant to which the Iowa Finance Authority has agreed to purchase the
City's Notes and has requested that such Notes be issued as a single Note in a denomination
equal to the total amount of the issue as authorized by Chapter 384 of the Code of Iowa; and
WHEREAS, the Loan and Disbursement Agreement and Note shall be payable solely and
only out of the Net Revenues of the Municipal Water System and shall be a first lien on the
future Net Revenues of the Utility; and shall not be general obligations of the City or payable in
any manner by taxation and the City shall be in no manner liable by reason of the failure of the
Net Revenues to be sufficient for the payment of the Loan and Disbursement Agreement and
Note; and
WHEREAS, before a Loan and Disbursement Agreement may be authorized and Water
Revenue Capital Loan Notes issued to evidence the obligation of the City thereunder, it is
necessary to comply with the provisions of the Code of Iowa, as amended, and to publish a
-2-
notice of the proposal and of the time and place of the meeting at which the Council proposes to
take action for the authorization of the Loan and Disbursement Agreement and Notes and to
receive oral and/or written objections from any resident or property owner of the City to such
action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, STATE OF IOWA:
Section 1. That this City Council meet in the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa at 6:00 o'clock P.M., on the 19th day of June, 2017, for the purpose of
taking action on the matter of the authorization of a Loan and Disbursement Agreement and the
issuance of not to exceed $10,200,000 Water Revenue Capital Loan Notes to evidence the
obligations of the City thereunder, the proceeds of which will be used to provide funds to pay the
costs of acquisition, construction, reconstruction, extending, remodeling, improving, repairing
and equipping all or part of the Municipal Water Utility, including those costs associated with
the Westside water system purchase and construction project.
Section 2. That the Clerk is hereby directed to cause at least one publication to be made
of a 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 on
the issuance of the Notes.
Section 3. The notice of the proposed action shall be in substantially the following form:
3
(To be published between: May 30, 2017 and June 14, 2017)
NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA ON THE MATTER OF THE PROPOSED
AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND
THE ISSUANCE OF NOT TO EXCEED $10,200,000 WATER REVENUE
CAPITAL LOAN NOTES, AND THE PUBLIC HEARING ON THE
AUTHORIZATION AND ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa,
will hold a public hearing on the 19t1 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 City Council
proposes to take additional action for the authorization of a Loan and Disbursement Agreement
by and between the City and the Iowa Finance Authority, and the issuance to the Iowa Finance
Authority of not to exceed $10,200,000 Water Revenue Capital Loan Notes to evidence the
obligations of the City under said Loan and Disbursement Agreement, in order to provide funds
to pay the costs of acquisition, construction, reconstruction, extending, remodeling, improving,
repairing and equipping all or part of the Municipal Water Utility, including those costs
associated with the Westside water system purchase and construction project. The Notes will not
constitute general obligations or be payable in any manner by taxation, but will be payable from
and secured by the Net Revenues of the Municipal Water Utility.
At the above meeting the City Council shall receive oral or written objections from any
resident or property owner of the City, to the above action. After all objections have been
received and considered, the City Council will at this meeting or at any adjournment thereof,
take additional action for the authorization of said Loan and Disbursement Agreement and the
issuance of Notes or will abandon the proposal to issue the Notes.
This Notice is given by order of the City Council of the City of Dubuque, Iowa, as
provided by Sections 384.24A and 384.83, as amended.
Dated this 9th day of June, 2017.
City Cle
(End of Notice)
4
ity of Dubuque, State of Iowa
PASSED AND APPROVED this 5th day ofJune, 2017.
Mayor
ATTEST:
CERTIFICATE
STATE OF IOWA
) SS
COUNTY OF DUBUQUE
I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the corporate records of the City
showing proceedings of the City Council, and the same is a true and complete copy of the action
taken by the Council with respect to the 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 public hearing 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 the 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 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 the 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 the City hereto affixed -'s 6th day of June, 2017.
City C =rk, City of Dubuque, State of Iowa
(SEAL)
ROLL CALL ORDER FOR MEETING OF
June 5, 2017
Jones, Connors, Resnick, Buol, Rios, Lynch, Del Toro
CITY OF DUBUQUE, IOWA
CITY COUNCIL MEETING
Historic Federal Building
350 W. 6th Street
June 5, 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. DARE Essay Contest Winners
DARE Officer Rick Fullmer will recognize the winners of the annual DARE essay contest.
2. ARK Advocates Distinguished Community Service Award
Leisure Services Recreation Division Manager Dan Kroger to present Recreation Supervisor
Janna Beau with the ARK Advocates Distinguished Community Service Award for her efforts to
bring adaptive sports to Dubuque.
PROCLAMATION(S)
1. Juneteenth Celebration Day (June 17, 2017)
2. LGBTQ+ Pride Month (June 2017)
3. A City of Welcome and Opportunity
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 5/15, 5/22; Five Flags Civic Center Advisory Commission of 5/22;
Housing Commission of 3/28; Historic Preservation Commission of 5/18; Library Board of Trustees of
4/27; Long Range Planning Advisory Commission of 5/17; Sister City Relationship Advisory Commission
of 5/17; Transit Advisory Board of 5/11; Proof of Publication for City Council Proceedings of 5/8; Proof of
Publication for List of Claims and Summary of Revenues for Month Ending 4/30.
Suggested Disposition: Receive and File
Pg. 1
CERTIFICATE
STATE OF IOWA
) SS
COUNTY OF DUBUQUE
I, the undersigned, do hereby certify that I am now and was at the tunes hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of the
City, I have caused a
NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, STATE OF IOWA, ON THE MATTER OF THE PROPOSED
AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT
AND THE ISSUANCE OF NOT TO EXCEED $10,200,000 WATER
REVENUE CAPITAL LOAN NOTES, SERIES 2017, OF THE CITY OF
DUBUQUE, AND THE PUBLIC HEARING ON THE AUTHORIZATION
AND ISSUANCE THEREOF
of which the clipping annexed to the publisher's affidavit hereto attached is in words and
figures a correct and complete copy, to be published as required by law in the Telegraph
Herald, a legal newspaper published at least once weekly, printed wholly in the English
language, published regularly and mailed through the post office of current entry for
more than two years and which has had for more than two years a bona fide paid
circulation recognized by the postal laws of the United States, and has a general
circulation in the City, and that the Notice was published in all of the issues thereof
published and circulated on the following date:
June 9, 2017.
WITNESS my official signature at Dubuque, Iowa, this day of
, 2017.
(SEAL)
City Clerk, City of Dubuque, State of Iowa
01366761-1\10422-182