Sewer Revenue Captial Loan Notes_$9.4M SRF SponsoredMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
bierd
All-America City
1
2007
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$9,400,000 Sewer Revenue Capital Loan Notes (State Revolving Fund
Sponsored Project)
DATE: June 25, 2012
Budget Director Jennifer Larson recommends that a public hearing be set for July 16,
2012 on the proposition of issuing not to exceed $9,400,000 in Sewer Revenue Capital
Loan Notes, (State Revolving Fund Sponsored Project), the proceeds of which will be
used to convert forty alleys and two parking lots to pervious pavement to improve water
quality and augment the City's stormwater management system and the Bee Branch
Creek Restoration Project. The purpose of the hearing is to establish authority for
amending the City's Series 2010E Sewer Note with the Iowa Finance Authority which
will permit additional funds for the Bee Branch Watershed Green Infrastructure Project
as a "sponsored project" under the Authority's new program.
On June 19, 2012, the State Revolving Loan Fund, a joint program of the Iowa
Department of Natural Resources and the Iowa Finance Authority, awarded the City of
Dubuque $9.4 million for the City of Dubuque's Bee Branch Watershed Green
Infrastructure Project. The funds are part of SRF's new Water Resource Restoration
effort, in which watershed protection projects are supported through interest rate
reductions on Clean Water SRF wastewater loans. The funding for the $9.4 million in
improvements will come from interest payments on the City's SRF wastewater loan to
complete the $64 million Water and Resource Recover Center Project which will be
returned to the City to fund the Bee Branch Watershed Green Infrastructure Project.
This arrangement is the first under the Water Resource Restoration program and is a
pilot that the DNR and IFA will use to determine how best to structure the program and
make it available to communities across the state in the future.
The funds will allow the City of Dubuque to install permeable interlocking concrete
pavement in 40 alleys (2.6 linear miles) and two parking lots (1.13 acres) located in the
Bee Branch Watershed, which covers approximately 6.5 square miles from
approximately 9th Street north to 32nd Street and from the Mississippi River west to
Asbury Road. When constructed, the 42 locations will total approximately 268,000
square feet (6.2 acres) of pervious pavement. The project's estimated total cost is $9.42
million and will result in approximately 750,000 cubic feet of runoff water and 2,400
pounds of sediment per year going into the ground rather than the Mississippi River.
Models predict this project could reduce the solids sent to the river by 67 percent and
runoff volume by 50 percent.
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 issue the loan, to the District
Court of a county in which any part of the City is located, within fifteen days after such
additional action is taken, but that the additional action is final and conclusive unless the
court finds that the Council exceeded its authority.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM /jml
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Jennifer Larson, Budget Director
Kenneth TeKippe, Finance Director
Gus Pshoyos, City Engineer
Deron Muehring, Civil Engineer II
2
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
Dubuque
bierd
All-America City
1
2007
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$9,400,000 Sewer Revenue Capital Loan Notes (State Revolving Fund
Sponsored Project)
DATE: June 25, 2012
INTRODUCTION
The purpose of this memorandum is to recommend the setting of a public hearing on
the proposal to issue not to exceed $9,400,000 Sewer Revenue Capital Loan Notes
(State Revolving Fund Sponsored Project), the proceeds of which will be used to
convert forty alleys and two parking lots to pervious pavement to improve water quality
and augment the City's stormwater management system and the Bee Branch Creek
Restoration Project. The purpose of the hearing is to establish authority for amending
the City's Series 2010E Sewer Note with the Iowa Finance Authority which will permit
additional funds for the Bee Branch Watershed Green Infrastructure Project as a
"sponsored project" under the Authority's new program. A letter from attorney Mark Cory
detailing information on the bond hearing is enclosed.
DISCUSSION
On June 19, 2012, the State Revolving Loan Fund, a joint program of the Iowa
Department of Natural Resources and the Iowa Finance Authority, awarded the City of
Dubuque $9.4 million for the City of Dubuque's Bee Branch Watershed Green
Infrastructure Project. The funds are part of SRF's new Water Resource Restoration
effort, in which watershed protection projects are supported through interest rate
reductions on Clean Water SRF wastewater loans. The funding for the $9.4 million in
improvements will come from interest payments on the City's SRF wastewater loan to
complete the $64 million Water and Resource Recover Center Project which will be
returned to the City to fund the Bee Branch Watershed Green Infrastructure Project.
This arrangement is the first under the Water Resource Restoration program and is a
pilot that the DNR and IFA will use to determine how best to structure the program and
make it available to communities across the state in the future.
The funds will allow the City of Dubuque to install permeable interlocking concrete
pavement in 40 alleys (2.6 linear miles) and two parking lots (1.13 acres) located in the
Bee Branch Watershed, which covers approximately 6.5 square miles from
approximately 9th Street north to 32nd Street and from the Mississippi River west to
Asbury Road. When constructed, the 42 locations will total approximately 268,000
square feet (6.2 acres) of pervious pavement. The project's estimated total cost is $9.42
million and will result in approximately 750,000 cubic feet of runoff water and 2,400
pounds of sediment per year going into the ground rather than the Mississippi River.
Models predict this project could reduce the solids sent to the river by 67 percent and
runoff volume by 50 percent.
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 issue the loan, to the District
Court of a county in which any part of the City is located, within fifteen days after such
additional action is taken, but that the additional action is final and conclusive unless the
court finds that the Council exceeded its authority.
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolution fixing the date of July
16, 2012 for a public hearing on the proposition of issuing not to exceed $9,400,000 in
Sewer Revenue Capital Loan Notes (State Revolving Fund Sponsored Project) for the
purpose of reconstructing thirty -nine alleys and constructing two parking lots with
permeable interlocking concrete pavement as well as reconstructing underground
utilities at forty -two locations within the Bee Branch Watershed and providing publication
of notice.
JML
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth TeKippe, Finance Director
Gus Pshoyos, City Engineer
Deron Muehring, Civil Engineer II
2
AHLERS COONEY, P.C.
100 COURT AVENUE. SUITE 600
DES MOINES. IOWA 50309 -2231
PHONE 515 -243 -7611
FAX: 515-243-2149
WWW.AHLERSLAW.COM
R. Mark Cory
rcory@ahlerslaw.com
June 22, 2012
Ms. Jenny Larson
Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
RE: Not to exceed $9,400,000 Sewer Revenue Capital Loan Notes
(SRF Sponsored Project)
Dear Ms. Larson:
Direct Dial:
(515)246 -0378
With this letter I am enclosing 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. Proceedings for the date of the public
hearing also are enclosed.
As you may know, the borrowing of loan funds by the City through the Iowa
Water Pollution Control Works Financing Program involves the same procedures
applicable to the issuance and sale of municipal bonds generally. In this instance, 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 Sewer Revenue Capital Loan Note that will be issued to the Authority at
the time the loan is closed. The purpose of this hearing is to establish authority for
amending the City's Series 2010E Sewer Note with the Iowa Finance Authority which
will permit additional funds for the Bee Branch Watershed Green Infrastructure Project
as a "sponsored project" under the Authority's new program.
WISHARD & BAILY - 1888: GUERNSEY & BAILY - 1893; BAILY & 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
June 22, 2012
Page 2
Notice of the hearing 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 days 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.
I also am enclosing suggested public hearing proceedings 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 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.
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.
June 22, 2012
Page 3
Enclosed are extra copies of the proceedings to be filled in as the originals and
returned to us for our transcript of the action taken, together with publisher's affidavit of
publication of notice of hearing. We are also enclosing an extra copy of the notice of
hearing to be delivered to the newspaper for publication purposes.
Should you have any questions concerning the enclosed proceedings or the SRF
Program, please don't hesitate to contact me.
R. Mark Cory
RMC:dc
Enclosures
cc Ken TeKippe (w /encl.)
Dave Lyons (w /encl.)
Mike Van Milligen (w /encl.)
Teri Goodman (w /encl.)
00867647-1\10422-132
(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: July 2, 2012.
Time of Meeting: 6:30 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 the
meeting is as follows:
Not to exceed $9,400,000 Sewer Revenue Capital Loan Notes
• 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.
Such additional matters as are set forth on the additional 6 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 the governmental body.
City er , City of r ubu s ue, Iowa
July 2, 2012
The City Council of the City of Dubuque, Iowa, met in regualr session, in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on
the above date. There were present Mayor Pro -Tem Ric W. Jones in the chair, and the
following named Council Members:
Karla Braig, Kevin Lynch, David Resnick
Absent: Mayor Roy D. Buol, Joyce Connors, Lynn Sutton
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 $9,400,000 SEWER 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 Resnick seconded
the motion to adopt. The roll was called and the vote was,
AYES: Braig, Jones, Lynch, Resnick
NAYS:
Whereupon, the Mayor declared the Resolution duly adopted as follows:
RESOLUTION NO. 178 -12
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AND DISBURSEMENT
AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $9,400,000 SEWER 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 Sewer Revenue Capital Loan Notes, in the amount of not to exceed
$9,400,000, 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 previously issued to the Iowa Finance Authority its
$64,885,000 Sewer Revenue Capital Loan Notes, Series 2010E, dated August 18, 2010;
and
WHEREAS, Iowa Code section 384.82 permits the City to issue obligations
secured by the net revenues of the sewer utility for projects, the definition of which
includes a "water resource restoration project "; and
WHEREAS, the Iowa Finance Authority has a new program which makes
additional loan funds available for qualified watershed projects; and
2-
WHEREAS, the City has proposed its Bee Branch Watershed Green Infrastructure
Project within the City limits for consideration as the pilot project under this new
program, and is in the process of negotiating a 28E Agreement with the Dubuque Soil
and Conservation District for the purpose of administering watershed projects; and
WHEREAS, pending approval of the Bee Branch Watershed Green Infrastructure
Project, the City would seek to amend the Loan and Disbursement Agreement with Iowa
Finance Authority for its Series 2010E Notes; and
WHEREAS, the City has applied for a loan through the Iowa Water Pollution
Control Works 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 Code of Iowa; and
WHEREAS, the Loan and Disbursement Agreement and Note shall be payable
solely and only out of the net earnings of the Municipal Sewer System and shall be a first
lien on the future net earnings 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
Sewer Revenue Capital Loan Notes issued to evidence the obligation of the City
thereunder, it is necessary to comply with the provisions of the City Code of Iowa, as
amended, and to publish a 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, IOWA:
Section 1. That this City Council meet in the Historic Federal Building, 350 West
6th Street, Dubuque, Iowa, at 6:30 P.M., on the 16th day of July, 2012, 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 $9,400,000 Sewer 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 associated with the Bee Branch Watershed Green
Infrastructure Project, including the construction and installation of permeable
interlocking concrete pavement at approximately 42 alley and parking lot locations in the
Bee Branch Watershed.
3
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.
form:
Section 3. The notice of the proposed action shall be in substantially the following
4
NOTICE OF MEETING 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 $9,400,000 SEWER 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 16th day of July, 2012, at 6:30 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 $9,400,000 Sewer 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 associated with the
Bee Branch Watershed Green Infrastructure Project, including the construction and
installation of permeable interlocking concrete pavement at approximately 42 alley and
parking lot locations in the Bee Branch Watershed. 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 Sewer System.
The proposed Notes, if and when issued, will be combined with the outstanding
Sewer Revenue Capital Loan Notes, Series 2010E, under a single loan agreement with
the Iowa Finance Authority.
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
day of ,2012.
Mayor
(End of Notice)
- 5 -
PASSED AND APPROVED this 9 day of ,) Li L 1 , 2012.
ATTEST:
6
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 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 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 3rd day of July
2012.
(SEAL)
00876932- 1U0422 -137
ir�
City C erk, City of 1► ubuque, State of Iowa
NovusAGENDA
Agenda Minutes Close
http: / /publicagenda. cityofdubuque. org /MeetingView.aspx?Meeting...
ROLL CALL ORDER FOR MEETING OF 7/2/2012
Braig, Buol, Connors, Jones, Lynch, Resnick, Sutton
CITY OF DUBUQUE,IOWA
CITY COUNCIL MEETING
Historic Federal Building
350 W. 6th Street, Dubuque
July 2, 2012
Council meetings are video streamed live and archived at
www.citvofdubuque.ora /media and on Dubuque's
CityChannel on the Mediacom cable system at Channel 8
(analog) and 97.2 (digital).
REGULAR SESSION
6:30 PM
PLEDGE OF ALLEGIANCE
MOMENT OF SILENCE
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 6/18
Proof of publication for City Council proceedings of 6/4
Suggested Disposition: Receive and File
City Council Proceedings 6/18, Proof - City Council Proceedings 6/4,
2. Notice of Claims and Suits
Donna McKnight for property damage, North Grandview Estates, LLC /Richard Henkel vs. City
of Dubuque for installation of streets, Tina Pfeiler for vehicle damage
Suggested Disposition: Receive and File; Refer to City Attorney
McKnight Claim, N. Grandview Estates/Henkel Suit, Pfeiler Claim,
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: Claim by Donna
McKnight for property damage, claim by Tina Pfeiler for vehicle damage.
1 of 7 6/29/2012 1:55 PM