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Sewer Revenue Capital Loan Notes $3.6M - Kerper Boulevard Sanitary Sewer Reconstruction Projects_Hearing Copyrighted June 19, 2017 City of Dubuque Public Hearings # 4. ITEM TITLE: Sewer Revenue Capital Loan Notes - Kerper Boulevard Sanitary Sewer Reconstruction Projects SUMMARY: Proof of publication on notice of public hearing to consider the sale of not-to-exceed $3,600,000 in Sewer Revenue Capital Loan Notes (State Revolving Loan Fund Program) for the Kerper Boulevard sanitary sewer reconstruction projects and the City Manager recommending approval. RESOLUTION Instituting proceedings to take additional action for the authorization of a Loan and Disbursement Agreement and the Issuance of not-to-exceed $3,600,00 Sewer Revenue Capital Loan Notes SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Proceedings for Public Hearing on the Issuance of Not to Exceed $3,600,000 Sewer Utility Revenue Capital City Manager Memo Loan Notes-MVM Memo Staff Memo Staff Memo Ahlers & Cooney, P.C. Letter Supporting Documentation Resolution Resolutions Proof of Publication Supporting Documentation THE CITY OF Dubuque fta B E I 11p y Masterpiece 012 the Mississippi 2007.2012«2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed $3,600,000 Sewer Utility Revenue Capital Loan Notes (State of Iowa Revolving Fund Loan) (Kerper Project) DATE: June 12, 2017 Finance Director Jean Nachtman recommends City Council approval of the suggested proceeding for a public hearing on the issuance of not to exceed $3,600,000 Sewer Utility Revenue Capital Loan Notes. Engineering staff have identified several different issues with the Kerper Boulevard sanitary sewer and have discussed and investigated several different options for both repair and replacement of the sewer. Other than the condition of the pipe itself, a portion of the sewer has substandard slope (flat) and contains sags which reduces velocity and allows sediment and grease to build up in the pipe. All the issues were considered when evaluating a course of action. The loan funds will be used to provide funds to pay the costs of acquisition, construction, reconstruction, extension, improvement, and equipping all or part of the Municipal Sewer System, including those costs associated with Kerper Boulevard Sanitary Sewer reconstruction project. The State Revolving Capital Loan Notes will carry an annual 1.75% interest rate for 20 years, with an annual servicing fee of 0.25%. There is also a onetime 0.5% upfront loan origination fee. 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 City 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 City Council decides to enter into the Agreement and issue the Notes, a form of resolution follows that should be introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional Action." In the event the City 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. Micliael C. Van Milligen` A MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Jean Nachtman, Finance Director 2 THE CUY OF Dude DUB E 'fililililir Masterpiece on the Mississippi •m:•w> TO: Michael C. Van Milligen, City Manager FROM: Jean Nachtman, Finance Director SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed $3,600,000 Sewer Utility Revenue Capital Loan Notes (State of Iowa Revolving Fund Loan) (Kerper Project) DATE: June 13, 2017 INTRODUCTION The purpose of this memorandum is to provide suggested proceeding for a public hearing on the issuance of not to exceed $3,600,000 Sewer Utility Revenue Capital Loan Notes. A letter from attorney Kristen Billingsley Cooper detailing information on the public hearing is enclosed. DISCUSSION Engineering staff have identified several different issues with the Kerper Blvd. sanitary sewer and have discussed and investigated several different options for both repair and replacement of the sewer. Other than the condition of the pipe itself, a portion of the sewer has substandard slope (flat) and contains sags which reduces velocity and allows sediment and grease to buildup in the pipe. All the issues were considered when evaluating a course of action. The selected option, was chosen to repair the immediate issues and for future expansion of Chaplain Schmitt Island. The selected option includes a combination of gravity sewer and a lift station and force main. A new 24" gravity sewer will be constructed from a sewer located adjacent to the Lower Bee Branch Channel and extend easterly along the north side of 16th Street to Kerper Blvd. The lift station will be placed near the intersection of Fengler and Kerper Blvd. The forcemain will be constructed along west side of Kerper Blvd., from the lift station to the intersection of Kerper Blvd and 16th Street where it will discharge to the new 24" gravity sanitary sewer. A second lift station will serve the properties on Kerper Court and two properties along Kerper Blvd, east of the intersection of Kerper Court and Kerper Blvd., the existing 10- inch diameter sewer, along Kerper Court, flows west to east. The east one half of the existing 10-inch diameter gravity sewer will be replaced with an 8-inch diameter sewer flowing east to west and will terminate at the new lift station on Kerper Court. The reconstructed portion of the Kerper Court gravity main serves two commercial/industrial properties along the east side of Kerper Blvd. and a portion of an industrial site adjacent to Kerper Court. The loan funds will be used to provide funds to pay the costs of acquisition, construction, reconstruction, extension, improvement, and equipping all or part of the Municipal Sewer System, including those costs associated with Kerper Boulevard Sanitary Sewer reconstruction project. The State Revolving Capital Loan Notes will carry an annual 1 .75% interest rate for 20 years, with an annual servicing fee of 0.25%. There is also a onetime 0.5% upfront loan origination fee. 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 Instituting Proceedings to Take Additional Action." 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. ACTION TO BE TAKEN I respectfully recommend the holding of the public hearing and approve the resolution. Attachments cc: Crenna Brumwell, City Attorney Teri Goodman, Assistant City Manager Jenny Larson, Budget Director Ahlers&Cooney, P.C. tQ A H L E R 5 COONEY Attorneys at Law 100 Court Avenue, Suite 600 A T T 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 June 8, 2017 VIA EMAIL Ms. Jenny Larson Budget Director City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 RE: Not To Exceed $3,600,000 Sewer Revenue Capital Loan Notes (State of Iowa Revolving Fund Loan) (Kerper Project) Dear Jenny: The public hearing proceedings scheduled for June 19, 2017 for the above referenced matter are enclosed. The proceedings are 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 City Council to authorize the form of Loan and Disbursement Agreement and issue the Notes to the 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 City Council decides to enter into the Agreement and issue the Notes, a form of resolution follows that should be introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional Action." Section 384.83 of the Code of Iowa provides that any resident or property owner of the City may appeal the decision to take additional action to the District Court of a county in which any part of the City is located, within 15 days after such additional action is taken, but that the additional action is final and conclusive unless the court finds that the City Council exceeded its authority. In the event an appeal is filed by any resident or property owner, please see that we are notified immediately; and, as soon as available, a copy of the notice of appeal should be furnished to our office for review. In the event the City Council decides to abandon the proposal then the form of resolution included in said proceedings should not be adopted. We would suggest that, in this event, a motion merely be adopted to the effect that such proposal is abandoned. WISHARD & BAILY - 1888; GUERNSEY & BAILY - 1893; GAILY & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER, AHLERS & COONEY - 1950; AHLERS, COONEY, DORWEILER, ALLUEE, HAYNIE & SMITH - 1974; AHLERS, COONEY, DORWE_ILER, HAYNIE, SMITH & AI_I.BEE, P.C. - 1990 June 8, 2017 Page 2 The Resolution taking additional action also acknowledges and approves of the terms of the SRF loan program. As you know, the terms of the loan being offered to the City are established primarily by reference to two external sources: the Authority's administrative rules governing the SRF Program and, to a lesser extent, by the terms of the bonds issued by the Authority to fund the City's loan. These loan terms are not negotiable by individual borrowers, and the City's decision to participate in the SRF Program effectively commits it to accept a loan on the stated terms. B Also enclosed in an extra copy of the proceedings to be filled in as the original and certified back to this office. If you have any questions pertaining to the proceedings enclosed or this letter, please do not hesitate to either write or call. Very truly yours, Ahlers & Cooney, P.C. tKj- ir 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 Kevin Firnstahl, City Clerk, City of Dubuque Ella Lahey, Confidential Account Clerk, City of Dubuque Tionna Pooler, Independent Public Advisors, LLC 01366735-1\10422-181 ITEMS TO INCLUDE ON AGENDA CITY OF DUBUQUE, IOWA Not To Exceed $3,600,000 Sewer Revenue Capital Loan Notes (State of Iowa Revolving Fund Loan) (Kerper Project) • Public hearing on the authorization of a Loan and Disbursement Agreement and the issuance of Notes to evidence the obligation of the City thereunder. • Resolution instituting proceedings to take additional action. NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE CHAPTER 21 AND THE LOCAL RULES OF THE CITY. June 19, 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, Ric Jones, Kevin Lynch, David Resnick, Jake Rios Absent: Luis Del Toro The Mayor announced that this was the time and place for the public hearing and meeting on the matter of 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 $3,600,000 Sewer Revenue Capital Loan Notes to evidence the obligations of the City under said Loan and Disbursement Agreement, in order to provide Bands to pay costs of acquisition, construction, reconstruction, extending, remodeling, improving, repairing and equipping all or part of the Municipal Sewer System, including those costs associated with Kerper Boulevard Sanitary Sewer reconstruction project, and that notice of the proposed action by the City Council to institute proceedings for the authorization of the Loan and Disbursement Agreement and the issuance of the Notes had been published pursuant to the provisions of Sections 384.24A and 384.82, as amended. The Mayor then asked the Clerk whether any written objections had been filed by any City resident or property owner to the proposal. The City Clerk advised the Mayor and the City Council that -0- written objections had been filed. The Mayor then called for oral objections to the proposal and -0- were made. Whereupon, the Mayor declared the time for receiving oral and written objections to be closed. (Attach here a summary of objections received or made, if any) 2 The City Council then considered the proposed action and the extent of objections thereto. Whereupon, Council Member Connors introduced and delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $3,600,000 SEWER REVENUE CAPITAL LOAN NOTES", and moved: X that the Resolution be adopted. ❑ to ADJOURN and defer action on the Resolution and the proposal to institute proceedings to the meeting to be held at o'clock .M. on the day of , 2017, at this place. Council Member Lynch seconded the motion. The roll was called and the vote was, AYES: Connors, Rios, Buol, Jones, Resnick, Lynch NAYS: Whereupon, the Mayor declared the measure duly adopted. RESOLUTION NO. 225-17 RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $3,600,000 SEWER REVENUE CAPITAL LOAN NOTES WHEREAS, pursuant to notice published as required by law, this Council has held a public meeting and hearing upon the proposal to institute proceedings 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 $3,600,000 Sewer Revenue Capital Loan Notes to evidence the obligations of the City under said Loan and Disbursement Agreement, for the purpose of paying costs of acquisition, construction, reconstruction, extending, remodeling, improving, repairing and equipping all or part of the Municipal Sewer System, including those costs associated with Kerper Boulevard Sanitary Sewer reconstruction project, and has considered the extent of objections received from residents or property owners as to said proposal and, accordingly the following action is now considered to be in the best interests of the City and residents thereof: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, STATE OF IOWA: Section 1. That this Council does hereby institute proceedings and takes 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 in the manner required bylaw of not to exceed $3,600,000 Sewer Revenue Capital Loan Notes for the foregoing purpose. Section 2. That this Council does hereby consent to the terms and conditions of the SRF Loan Program, which terms and conditions and the disclosures provided with respect thereto are hereby acknowledged, accepted and approved. Section 3. That the Clerk, with the assistance of the City Attorney and bond counsel, is hereby authorized and directed to proceed with the preparation of such documents and proceedings as shall be necessary to authorize the City's participation in the SRF Loan Program, to select a suitable date for final Council authorization of the required Loan and Disbursement Agreement and issuance of the Note to evidence the City's obligations thereunder, and to take such other actions as the Clerk shall deem necessary to permit the completion of a loan on a basis favorable to the City and acceptable to this Council. Section 4. This Resolution shall serve as a declaration of official intent under Treasury Regulation 1.150-2 and shall be maintained on file as a public record of such intent. It is reasonably expected that Sewer fund moneys may be advanced from time to time for capital expenditures which are to be paid from the proceeds of the above loan agreement. The amounts so advanced shall be reimbursed from the proceeds of the Loan Agreement not later than eighteen months after the initial payment of the capital expenditures or eighteen months after the property is placed in service. Such advancements shall not exceed the loan amount authorized in this Resolution unless the same are for preliminary expenditures or unless another declaration of intention is adopted. 4 PASSED AND APPROVED this 19th day of June, 2017. ATTEST: 5 Mayor ' thi"," 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 this 2Oth day of June, 2017. (SEAL) 01370164-1 \10422-181 City Clerk City of Dubuque, State of Iowa ROLL CALL ORDER FOR MEETING OF June 19, 2017 Connors, Rios, Buol, Del Toro, Jones, Resnick, Lynch CITY OF DUBUQUE, IOWA CITY COUNCIL MEETING Historic Federal Building 350 W. 6th Street June 19, 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 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 6/5, 6/12; Civil Service Commission of 5/30; Library Board of Trustees Report #161 of 5/25; Park and Recreation Commission of 5/9; Zoning Advisory Commission of 6/7; Zoning Board of Adjustment of 5/25; Proof of publication for City Council Proceedings of 5/15, 5/12 Suggested Disposition: Receive and File 2. Notice of Claims and Suits Anderson Windows for property damage, Herbert Cook for vehicle damage, Ron Ludwig for vehicle damage, Judie Root for property damage, James Schreiner for personal injury/vehicle damage, Skyler Lee Tracy for vehicle damage. Suggested Disposition: Receive and File; Refer to City Attorney 3. Disposition of Claims City Attorney advising that the following claims have been referred to Public Entity Risk Services of Iowa, the agent for the Iowa Communities Assurance Pool: Anderson Windows for property damage, Herbert Cook for vehicle damage, Ron Ludwig for vehicle damage, Judie Root for property damage, James Schreiner for personal injury/vehicle damage, Skyler Lee Tracy for vehicle damage. Suggested Disposition: Receive and File; Concur 4. Administrative Services Agreement with SisCo City Manager recommending approval of an Administrative Services Agreement with Self Insured Services Company (SisCo) for COBRA Administration of the Medical and Dental Plans and Administration of the Short -Term Disability Plan effective July 1, 2017. Pg. 1 STATE OF IOWA COUNTY OF DUBUQUE CERTIFICATE ) SS ) I, the undersigned, do hereby certify that I am now and was at the times 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 $3,600,000 SEWER 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 A-1/#? day of , 2017. City Clerk, City of Dubuque, State of Iowa (SEAL) 01366731-1\10422-181 STATE OF IOWA {SS: DUBUQUE COUNTY ISI CERTIFICATION OF PUBLICATION li I, Suzanne Pike, 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: June 9, 2017, and for which the charge is $33.76. I 1 1 Subscribed to before me otary Public in and for Dubuque County, Iowa, j this day of , 20 I i a a Notary Public in and for Dubuque County, Iowa. 0=WEESTERMEYEREYER54885.i,2020 j o'clock P.M., in the by Clerk's office at (563)taxation„but will be I Historic federal Build- payable from and 589-4100 or TOD/1TY ing, 350 11 West- 6th secured by the Net (563)'690-6678;at least Street, Dubuque,Iowa, Revenues of the 48 hours prior to the at which meeting,the Municipal Sewer meeting. City Council proposes System. Dated this 9th day of to take additional At the above meeting June,2017. action for the author- the City Council shall Roy D.Buol,Mayor a ization of a Loan and receive oral or written It 6/9 Disbursement Agree objections from any I ment by and between resident or property the City and the Iowa owner,of the City, to Finance Authority, and the above action:After-::, CITY OF DUBUQUE, the issuance to the all objections -have IOWA: Iowa Finance Authority been received and OFFICIAL NOTICE of not to exceed considered, the City NOTICE OF MEETING $3,600,000 Sewer Reve- Council will at this OF THE CITY OF nue Capital Loan Notes meeting 'or at any DUBUQUE, IOWA ON to evidence the`obli- :adjournment thereof, THE`MATTER OF THE gations of the City take additional action PROPOSED AUTHORI- under said Loan and for the authorization`of ~ZATION',OF A LOAN Disbursement Agree- said Loan and Dis- I AND DISBURSEMENT ment, in order to bursement Agreement AGREEMENT” AND provide funds to;pay and the issuance of THE ISSUANCE OF the costs of acquk Notes or will abandon NOT TO EXCEED sition, construction, the proposal to issue $3,600 ,000 SEWER reconstruction;extend- the Notes. y REVENUE .CAPITAL ing, remodeling, im This Notice is given by LOAN NOTES, ANDproving, repairing and order of the City THE`PUBLIC'HEARING equipping all or part of Council of the City of ON THE AUTHORI the Municipal :-Sewer Dubuque, Iowa; as ZATION AND ISSU- System, , including provided by Sections ANCETHEREOF those costs associated 384.24A and 384.83, as PUBLIC NOTICE' is with the. Keeper Boule- amended. d hereby given that the vard. sanitary>sewer Any visual or hearing City Council of the City reconstruction project. impaired persons need- of Dubuque, Iowa, will. The Notes will .not ing special assistance p hold a public-hearing constitute general or persons with special on the 19thday of obligations or be accessibility needs ; 'June, 2017, at '6:00 payable in any manner should contact the City