State Revolving Fund 28E Agremeent for Secondary FundingMasterpiece on the Mississippi
Dubuque
All-America CITY
1111
2007
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
SUBJECT: State Revolving Fund — 28E Agreement for Secondary Funding
DATE: February 27, 2012
INTRODUCTION
The purpose of this memorandum is to request the Mayor and City Clerk to execute a
28E Agreement with the Dubuque Soil and Water Conservation District. The 28E
Agreement is a requirement of the State Revolving Fund (SRF) Secondary Funding
application that the City plans to submit for the $9.4 million Bee Branch Watershed
Green Infrastructure Project. The application must be submitted by Thursday, March 1,
2012.
Through the Bee Branch Watershed Green Infrastructure Project, the City proposes to
install permeable interlocking concrete pavement at 42 different locations in the Bee
Branch Watershed. When constructed, the 42 different locations will total approximately
268,000 square feet (6.2 acres) of pervious pavement for an estimated total cost of
$9.42 million and result in approximately 2,400 pounds per year of total suspended
solids (TSS) and 750,000 cubic feet of runoff going into the ground rather than the
Mississippi River. The project will be funded by the interest generated from the $65
million SRF loan for the Water & Resource Recovery Center.
BACKGROUND
During the 2009 Iowa General Assembly session, legislation was passed to allow a new
method for funding water quality protection. Senate File 339 amended the Iowa Code to
add a new category of projects that can be financed with sewer revenues. This new
category, called "water resource restoration," includes locally directed, watershed -based
projects to address water quality impairments. Before this amendment, utility revenues
could only be used for construction and improvements for the wastewater system
itself. With the new legislation, wastewater utilities can also finance and pay for projects,
within or outside the city limits, that cover best management practices for nonpoint
source pollution control.
On February 20, 2012, the City Council passed a resolution in support of a State
Revolving Loan Fund Secondary Funding application for the Bee Branch Watershed
Green Infrastructure Project.
DISCUSSION
The Bee Branch Watershed covers approximately 6.5 square miles of the City of
Dubuque and is almost fully developed. Following an intense thunderstorm in 1999, the
City of Dubuque commissioned an engineering study and the development of the
Drainage Basin Master Plan (DBMP). In addition to identifying at -risk properties, the
DBMP identified three major projects to provide flood control and water quality
improvement: the Carter Road Detention Basin; the expansion and improvement of the
32nd Street Detention Basin; and the restoration of the Bee Branch Creek. The City has
completed the first two projects, and the Bee Branch project is currently under
construction.
For the most part, these projects were designed to manage stormwater runoff that has
increased due to development. With the Bee Branch Watershed Green Infrastructure
Project, the City of Dubuque proposes to take stormwater management a step further
by managing it at the site, where rainfall hits the ground. The Bee Branch Watershed
Green Infrastructure Project includes over six acres in permeable paver alleys and
parking lots which will result in preventing almost 2,400 pounds of sediment and
750,000 cubic feet of runoff per year from entering the Mississippi River.
Green Infrastructure is an approach to stormwater management that is cost - effective,
sustainable, and environmentally - friendly. Green Infrastructure management
approaches and technologies infiltrate, evapotranspire, capture and reuse stormwater to
maintain or restore natural hydrology. At the largest scale, the preservation and
restoration of natural landscape features (such as forests, floodplains and wetlands) are
critical components of green stormwater infrastructure. On a smaller scale, green
infrastructure practices include rain gardens, porous pavements, green roofs, infiltration
planters, trees and tree boxes, and rainwater harvesting for non - potable uses such as
toilet flushing and landscape irrigation.
Through the Bee Branch Watershed Green Infrastructure Project, the City proposes to
install permeable interlocking concrete pavement at 42 different locations in the Bee
Branch Watershed. Approximately 40 locations will be green alleys for a total area of
approximately 219,000 square feet at an estimated cost of $8.75 million. Two
installations are proposed in parking lots over an area of approximately 49,000 square
feet at an estimated cost of $663,000. When constructed, the 42 different locations will
total approximately 268,000 square feet (6.2 acres) of pervious pavement for an
estimated total cost of $9.42 million. The City proposes to implement the project over
three years. To date, the City has converted four standard alleys to pervious green
alleys, which is approximately 1% of all alleys in the Bee Branch Watershed. This
percentage would increase to almost 20% upon completion of the Bee Branch
Watershed Green Infrastructure Project.
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City staff estimates that approximately $35 million is necessary to convert all alleys to
pervious surface. The greatest benefit of pervious pavement is that it allows water to
go back into the ground — where it went prior to development. Although sometimes
more costly than other Green Infrastructure practices, pervious pavement is typically the
most efficient at removing pollutants from runoff because the pollutants are allowed to
go into the ground where they are filtered out in the soils below rather than conveyed to
another practice that requires regular maintenance to remove the collected pollutants.
If executed, the 28E Agreement can be used for future SRF Secondary Funding
applications, not just the proposed Bee Branch Green Infrastructure Project.
RECOMMENDATION
I recommend that the Mayor and City Clerk execute the attached 28E Agreement. The
agreement is a requirement of the Secondary Funding legislation, and the executed
agreement will be submitted with the City's application on Thursday, March 1, 2012.
The agreement has been reviewed by the City Attorney.
Mr. Eric Schmechel of the Dubuque Soil and Water Conservation District is coordinating
execution by the County.
BUDGET IMPACT
The executed 28E Agreement will have no impact to the City's budget.
The City of Dubuque and the Iowa Housing Authority entered into a State Revolving
Fund Loan agreement in the amount of $64,885,000 on August 18, 2010 to upgrade the
City's wastewater treatment plant. Terms of the loan include a 3% annual interest rate
and will be paid over 26 years with semi - annual interest payments due June 1 and
December 1. Total interest payments over the loan period will be approximately
$33,201,730.05.
Of the $33,201,730.05 to be paid in interest, the City is requesting to use approximately
$9.4 million of what would be interest payments to instead pay for the construction of
green alleys. If approved, this will significantly improve the City's ability to construct
green alleys and will positively affect the City's budget.
ACTION TO BE TAKEN
I respectfully request that the City Council adopt the attached resolution authorizing the
Mayor to execute the attached 28E agreement with the Dubuque Soil & Water
Conservation District for the purpose of implementing water resource restoration
projects.
3
Attachments (2)
cc: Barry Lindahl, City Attorney
Teri Goodmann, Assistant City Manager
David Lyons, Project Manager — Smarter Sustainable Dubuque
Deron Muehring, Civil Engineer
Todd Shoemaker, Environmental Engineer
Prepared by: Todd Shoemaker
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manage
FROM: Gus Psihoyos, City Engineer
SUBJECT: State Revolving Fund — 28E Agreement for Secondary Funding
DATE: February 27, 2012
Dubuque
biebd
All- America CRY
'I
2007
INTRODUCTION
The purpose of this memorandum is to request the Mayor and City Clerk to execute a
28E Agreement with the Dubuque Soil and Water Conservation District. The 28E
Agreement is a requirement of the State Revolving Fund (SRF) Secondary Funding
application that the City plans to submit for the $9.4 million Bee Branch Watershed
Green Infrastructure Project. The application must be submitted by Thursday, March 1,
2012.
Through the Bee Branch Watershed Green Infrastructure Project, the City proposes to
install permeable interlocking concrete pavement at 42 different locations in the Bee
Branch Watershed. When constructed, the 42 different locations will total approximately
268,000 square feet (6.2 acres) of pervious pavement for an estimated total cost of
$9.42 million and result in approximately 2,400 pounds per year of total suspended
solids (TSS) and 750,000 cubic feet of runoff going into the ground rather than the
Mississippi River. The project will be funded by the interest generated from the $65
million SRF loan for the Water & Resource Recovery Center.
BACKGROUND
During the 2009 Iowa General Assembly session, legislation was passed to allow a new
method for funding water quality protection. Senate File 339 amended the Iowa Code to
add a new category of projects that can be financed with sewer revenues. This new
category, called "water resource restoration," includes locally directed, watershed -based
projects to address water quality impairments. Before this amendment, utility revenues
could only be used for construction and improvements for the wastewater system
itself. With the new legislation, wastewater utilities can also finance and pay for projects,
within or outside the city limits, that cover best management practices for nonpoint
source pollution control.
City staff estimates that approximately $35 million is necessary to convert all alleys to
pervious surface. The greatest benefit of pervious pavement is that it allows water to
go back into the ground — where it went prior to development. Although sometimes
more costly than other Green Infrastructure practices, pervious pavement is typically the
most efficient at removing pollutants from runoff because the pollutants are allowed to
go into the ground where they are filtered out in the soils below rather than conveyed to
another practice that requires regular maintenance to remove the collected pollutants.
If executed, the 28E Agreement can be used for future SRF Secondary Funding
applications, not just the proposed Bee Branch Green Infrastructure Project.
RECOMMENDATION
I recommend that the Mayor and City Clerk execute the attached 28E Agreement. The
agreement is a requirement of the Secondary Funding legislation, and the executed
agreement will be submitted with the City's application on Thursday, March 1, 2012.
The agreement has been reviewed by the City Attorney.
Mr. Eric Schmechel of the Dubuque Soil and Water Conservation District is coordinating
execution by the County.
BUDGET IMPACT
The executed 28E Agreement will have no impact to the City's budget.
The City of Dubuque and the Iowa Housing Authority entered into a State Revolving
Fund Loan agreement in the amount of $64,885,000 on August 18, 2010 to upgrade the
City's wastewater treatment plant. Terms of the loan include a 3% annual interest rate
and will be paid over 26 years with semi - annual interest payments due June 1 and
December 1. Total interest payments over the loan period will be approximately
$33,201,730.05.
Of the $33,201,730.05 to be paid in interest, the City is requesting to use approximately
$9.4 million of what would be interest payments to instead pay for the construction of
green alleys. If approved, this will significantly improve the City's ability to construct
green alleys and will positively affect the City's budget.
ACTION TO BE TAKEN
I respectfully request that the City Council adopt the attached resolution authorizing the
Mayor to execute the attached 28E agreement with the Dubuque Soil & Water
Conservation District for the purpose of implementing water resource restoration
projects.
3
Attachments (2)
cc: Barry Lindahl, City Attorney
Teri Goodmann, Assistant City Manager
David Lyons, Project Manager — Smarter Sustainable Dubuque
Deron Muehring, Civil Engineer
Todd Shoemaker, Environmental Engineer
Prepared by: Todd Shoemaker
RESOLUTION NO. 59 -12
AUTHORIZING THE EXECUTION OF A 28E AGREEMENT WITH THE DUBUQUE
SOIL AND WATER CONSERVATION DISTRICT REGARDING THE
IMPLEMENTATION OF WATER RESOURCE RESTORATION PROJECTS
Whereas, Iowa Code section 384.82 authorizes a city to carry out projects,
borrow money, and issue revenue bonds and pledge orders to pay all or part of the
cost of projects, which may include a qualified water resource restoration project,
such revenue bonds and pledge orders to be payable solely and only out of the net
revenues of the city utility, combined utility system, city enterprise, or combined city
enterprise involved in the project; and
Whereas, Iowa Code section 384.80(15) provides that a water resource
restoration project means the acquisition of real property or improvements or other
activity or undertaking that will assist in improving the quality of the water in the
watershed where a city water or wastewater utility is located; and
Whereas, Iowa Code section 384.84 provides that the governing body of a
city water or wastewater utility may enter into an agreement with a qualified entity to
use proceeds from revenue bonds for a water resource restoration project if the rate
imposed is no greater than if there was not a water resource restoration project
agreement; and
Whereas, City and District are qualified entities to enter into the attached
Agreement pursuant to Iowa Code chapter 28E to undertake water resource
restoration project that have been approved for water quality improvements in the
watershed where City's water or wastewater utility is located; and
Whereas, the City Council has determined that it is in the best interests of the
City of Dubuque to enter into the Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. The Agreement is hereby approved.
Section 2. The Mayor is hereby authorized and directed to sign the
Agreement on behalf of the City of Dubuque.
Passed, approved, and adopted this29th day of February , 2012.
Roy D uol, Mayor
Attest:
Ke, in S. Firnstahl, City Clerk
Prepared by: Barry A. Lindahl, Suite 330, 300 Main Street, Dubuque, IA 52001 (563) 583 -4113
Return to: Barry A. Lindahl, Suite 330, 300 Main Street, Dubuque, IA 52001
28E AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
DUBUQUE SOIL AND WATER CONSERVATION DISTRICT
FOR
WATER RESOURCE RESTORATION PROJECTS
This Agreement, dated for reference purposes the 29tlday ofFebruary
2012, is made and entered into by and between the City of Dubuque, Iowa (City)
and Dubuque Soil and Water Conservation District (District).
Whereas, Iowa Code section 384..82 authorizes a city to carry out projects,
borrow money, and issue revenue bonds and pledge orders to pay all or part of the
cost of projects, which may include a qualified water resource restoration project,
such revenue bonds and pledge orders to be payable solely and only out of the net
revenues of the city utility, combined utility system, city enterprise, or combined city
enterprise involved in the project; and
Whereas, Iowa Code section 384.80(15) provides that a water resource
restoration project means the acquisition of real property or improvements or other
activity or undertaking that will assist in improving the quality of the water in the
watershed where a city water or wastewater utility is located; and
Whereas, Iowa Code section 384.84 provides that the governing body of a
city water or wastewater utility may enter into an agreement with a qualified entity to
use proceeds from revenue bonds for a water resource restoration project if the rate
imposed is no greater than if there was not a water resource restoration project
agreement; and
Whereas, City and District are qualified entities to enter into an agreement
pursuant to Iowa Code chapter 28E to undertake water resource restoration
projects that have been approved for water quality improvements in the watershed
where City's water or wastewater utility is located; and
Whereas, City and District desire to enter into this Agreement pursuant to
Iowa Code Chapter 28E for the purpose of carrying out water resource restoration
projects in the watershed where City's city water and wastewater utilities are
located.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES
AS FOLLOWS:
022712bal
SECTION 1. IDENTITY OF THE PARTIES.
1.1 The City of Dubuque (City) is a municipality of the State of Iowa, organized
and operating pursuant to Iowa Code Chapter 364. Its address is 50 West 13th
Street, Dubuque, Iowa 52001.
1.2 The Dubuque Soil and Water Conservation District (District) is a
governmental division of the State of Iowa as defined in Iowa Code section
161A.3(6) and a soil and water conservation district established pursuant to Iowa
Code section 161A5(1). Its address is 210 Bierman Road, Epworth, IA 52045
SECTION 2. PURPOSE.
2.1 The purpose of this Agreement is to provide for the manner in which the
parties shall cooperate with one another to successfully complete the water
resource restoration projects (the Projects), including but not limited to the following:
1) Riparian buffer acquisition, enhancement, expansion, or restoration.
2) Conservation easements.
3) Riparian zone or wetland buffer extension or restoration.
4) Wetland restoration in conjunction with an adjoining high - quality water
resource.
5) Stream bank stabilization and natural channel design techniques.
6) In- stream habitat enhancements and dam removals.
7) Green infrastructure projects such as rain gardens and permeable
pavement projects.
SECTION 3. NO SEPARATE ENTITY CREATED.
3.1 No separate legal or administrative entity shall be created by this Agreement.
3.2 A joint board of the parties known as the Watershed Water Resource
Restoration Board (the Board) shall be responsible for coordinating the Projects.
The joint board shall comprise City's Mayor and City Manager and District's Urban
Conservationist.
3.3 The Board shall meet from time to time during the term of this Agreement
but not less than quarterly to review the Projects.
SECTION 4. DURATION. This Agreement shall be in effect perpetually until
terminated pursuant to Section 10.
SECTION 5. POWERS AND DUTIES
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5.1 The parties to this Agreement shall retain all powers and duties conferred by
law and shall assist each other in the exercise of such powers and the performance
of this Agreement.
5.2 City shall be responsible for:
1) Identifying opportunities for funding and in -kind support for the
undertaking of water quality and water improvement projects within
the watershed;
2) Identifying opportunities for infrastructure development and planning
capable of improving water quality in the watershed;
3) Providing support for the administration of any projects, including
technical, financial and clerical;
4) Securing such financing, including grants, loans and the issuance of
bonds or loan agreements, as City determines to be necessary or
desirable to achieve the objectives of the agreement;
5) Coordinating with the wastewater utility;
6) Designing and bidding of projects;
7) Administering contracts; and
8) Observing construction.
5.3 District shall be responsible for:
1) Identifying water quality impairments within the watershed;
2) Identifying water quality improvement opportunities within the
watershed;
3) Identifying the most effective best management practices for water
quality and quantity improvements;
4) Participating in any educational /outreach programs in accordance with
the City's NPDES permit and stormwater /watershed program; and
5) Continuing a strong connection with the City's sustainability efforts,
building upon needs and necessary improvements.
SECTION 6. MANNER OF FINANCING. The Board may solicit, accept and
receive donations, endowments, gifts, grants, reimbursements and other such funds
as necessary to support work pursuant to this Agreement.
SECTION 7. ENTIRE AGREEMENT.
7.1 This Agreement contains the entire agreement and integrates all of the terms
and conditions contained in and incidental to such agreement and supersedes all
prior negotiations and communications concerning this Agreement, oral or written,
between the parties, their agents, employees and representatives. No modifications
or waiver of any provision in this Agreement shall be valid unless in writing and
signed by all of the parties. If, for any reason, any provisions of this Agreement
3
shall be inoperative, the validity and affect of the other provisions shall not be
affected thereby.
7.2 If any provisions of this Agreement is found to be invalid by any court,
administrative agency, or tribunal of competent jurisdiction, the invalidity of any such
provision shall not affect the validity of the remaining provisions hereof.
7.3 This Agreement shall be binding upon and inure to the benefit of the parties
and their respective successors and assigns. The parties agree that neither City
nor District shall have the right to assign their rights and obligations hereunder to
any party without prior written consent of the other party, which consent shall not be
unreasonably withheld.
SECTION 8. GOVERNING LAW. This Agreement shall be governed by and
interpreted under the laws of the State of Iowa.
SECTION 9. AMENDMENTS. This Agreement may be amended at any time by
the parties. All amendments shall be in writing, signed by both parties, and filed in
an electronic format with the Iowa Secretary of State as required by Iowa Code
section 28E.8.
SECTION 10. TERMINATION. This Agreement shall terminate upon mutual
agreement of the parties.
SECTION 11. EFFECTIVE DATE. This Agreement shall take effect upon
execution by the parties as required by law, filing with the Secretary of State in an
electronic format.
SECTION 12. DISPUTE RESOLUTION. Any dispute between the parties arising
out of or within the scope of the interpretation, construction or application of this
Agreement shall, prior to the commencement of any formal legal proceedings, be
submitted to arbitration. Either party may submit to the other a written request for
arbitration. Within ten days after the date of such request, City and District shall
each select one arbitrator and notify the other party of the name and address of
such arbitrator. The arbitrators so selected shall within ten days after being notified
of their selection, select a third arbitrator and after doing so, shall notify City and
District in writing forthwith of the name and address of the third arbitrator. The
arbitration proceedings shall be governed by Iowa Code Chapter 679A.
CITY OF DUBUQUE, IOWA
By:
DUBUQUE SOIL AND WATER
CONSERVATION DISTRICT
Roy I '"Buol, Mayor Kelvin Wilgenbu , Chairman
4
By:
Ke n S. Firnstahl
City Clerk
STATE OF IOWA )
COUNTY OF DUBUQUE ) ss:
On this 29th day of February , 2012, before me, a Notary Public in
and for the State of Iowa, personally appeared Roy D. Buol and Kevin S. Firnstahl,
to me personally known, and, who, being by me duly sworn, did say that they are
the Mayor and Acting City Clerk, respectively, of the City of Dubuque, Iowa; that the
seal affixed to the foregoing instrument is the corporate seal of the city, and that the
instrument was signed and sealed on behalf of the city, by authority of its City
Council, approved by the City Council of the City of Dubuque, Iowa, on the 29th
day of February , 2012, and that they acknowledged the execution of the
instrument to be their voluntary act and deed and the voluntary act and deed of the
corporation, by it voluntarily executed.
TRISH L. GLEASON
Commission Number 719986
My Commission Expires
ia.►�►�i
STATE OF IOWA )
COUNTY OF DUBUQUE ) ss:
instrument was acknowledged before me on the d\'7 day of
, 2012 by Melvin Wilgenbusch as Chairperson of the
Dubuque Sc iI)and Water Conservation Dist
This
Notary Public in and for State of Iowa
Sandralee M. Scott
Iowa Notarial Seal
Commission Number 146807
My Commission Expires 04/14/2012
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