HomeMy WebLinkAbout2023-05-16 ResolutionPrepared By:Nicole Davies, Finance Director
Reviewed By:Geoff Fruin, City Manager
Fiscal Impact:Adopted as part of the FY2023 Revised Budget and 2023-
2027 Capital Improvement Program
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Agreement Relating to Paying Agency, Registrar and Transfer Agency
Resolution.docx
Item Number: 6.b.
May 16, 2023
Resolution appointing U.S. Bank Trust Company, National Association of St. Paul, Minnesota,
to serve as Paying Agent, Bond Registrar, and Transfer Agent, approving the Paying Agent
and Bond Registrar and Transfer Agent Agreement and authorizing the execution of the
Agreement.
Executive Summary:
On the May 16 City Council agenda, there are two separate resolutions for the City Council to
consider in order to complete the sale of the 2023 General Obligation Bonds. The first
resolution appoints US Bank as the registrar and paying agent for the 2023 General
Obligation Bonds and authorizes the execution of an agreement with them for these services.
The second resolution approves the tax exemption certificate, the continuing disclosure
certificate and authorizes the issuance of the 2023 General Obligation Bonds. The resolution
also amends the tax levy requirements needed for the repayment of the bonds.
Background / Analysis:
On May 2, 2023, the City opened bids for the 2023 General Obligation Bonds at a par amount of
$9,655,000.
The City received seven bids on the 2023 General Obligation Bonds from Robert W. Baird & Company,
Piper Sandler & Company, Hilltop Securities Inc., D.A. Davidson & Company, BOK Financial Securities,
Inc., Northland Securities, Inc. and Raymond James & Associates, Inc. The lowest true interest rate bid
was received from Robert W. Baird & Company of Milwaukee, Wisconsin at 2.8547% and a price of
$10,485,213.45. The 2023 General Obligation Bonds are 10-year bonds that mature in 2033.
In order for the 2023 General Obligation Bonds to remain bank qualified bonds the issue
needed to be resized to be $10,000,000 or less. The bonds were resized to a par amount of
$9,105,000, with a true interest rate of 2.8244% and at a price of $9,941,862.25.
Prepared By:Nicole Davies, Finance Director
Reviewed By:Geoff Fruin, City Manager
Fiscal Impact:Adopted as part of the FY2023 Revised Budget and 2023-
2027 Capital Improvement Plan.
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Tax Exemption Certificate
Continuing Disclosure Certificate
Delivery Certificate
Transcript Certificate
Authentication Order
County Auditor's Certificate
Resolution
Item Number: 6.c.
May 16, 2023
Resolution Authorizing and Providing for the Issuance of $9,105,000 General Obligation
Bonds, Series 2023, and Levying a Tax to Pay Said Bonds; Approval of the Tax Exemption
Certificate and Continuing Disclosure Certificate.
Executive Summary:
On the May 16 City Council agenda, there are two separate resolutions for the City Council to
consider in order to complete the sale of the 2023 General Obligation Bonds. The first
resolution appoints US Bank as the registrar and paying agent for the 2023 General
Obligation Bonds and authorizes the execution of an agreement with them for these services.
The second resolution approves the tax exemption certificate, the continuing disclosure
certificate and authorizes the issuance of the 2023 General Obligation Bonds. The resolution
also amends the tax levy requirements needed for the repayment of the bonds.
Background / Analysis:
On May 2, 2023, the City sold the 2023 General Obligation Bonds at a par amount of
$9,655,000.
The City received seven bids on the 2023 General Obligation Bonds from Robert W. Baird &
Company, Piper Sandler & Company, Hilltop Securities Inc., D.A. Davidson & Company,
BOK Financial Securities, Inc., Northland Securities, Inc. and Raymond James & Associates,
Inc. The lowest true interest rate bid was received from Robert W. Baird & Company of
Milwaukee, Wisconsin at 2.8547% and a price of $10,485,213.45. The 2023 General
Obligation Bonds are 10-year bonds that mature in 2033.
In order for the 2023 General Obligation Bonds to remain bank qualified bonds the issue
needed to be resized to be $10,000,000 or less. The bonds were resized to a par amount of
$9,105,000, with a true interest rate of 2.8244% and at a price of $9,941,862.25.
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Items to Include on Agenda
City of Iowa City, Iowa
$9,105,000 General Obligation Bonds, Series 2023
Resolution Appointing Paying Agent, Bond Registrar, and Transfer Agent, Approving
the Paying Agent and Bond Registrar and Transfer Agent Agreement and Authorizing
the Execution of the Agreement.
Resolution authorizing and providing for the issuance, and levying a tax to pay the
Bonds; Approval of the Tax Exemption Certificate and Continuing Disclosure
Certificate.
Notice Must Be Given Pursuant to Iowa Code
Chapter 21 and the Local Rules of the City.
May 16, 2023
The City Council of the City of Iowa City, State of Iowa, met in regular
session, in the Emma J. Harvat Hall, City Hall,410 E. Washington, Iowa City, Iowa, at
6:00 P .M., on the above date. There were present Mayor Teague , in
the chair, and the following named Council Members:
Alter. Bergus, Dunn, Harmsen, Taylor, Teague, Thomas
Absent: None
Vacant: None
* * * * * * *
2
Council Member Taylor introduced the following resolution entitled
"Resolution Appointing U.S. Bank Trust Company,National Association of St. Paul, Minnesota,
to Serve as Paying Agent, Bond Registrar, and Transfer Agent, Approving the Paying Agent and
Bond Registrar and Transfer Agent Agreement And Authorizing The Execution of the
Agreement", and moved that the resolution be adopted. Council Member
Bergus seconded the motion to adopt. The roll was called and the vote was,
AYES: Alter, Bergus, Dunn, Harmsen, Taylor, Teague, Thomas
NAYS: None
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution No. 23-142
Resolution Appointing U.S. Bank Trust Company, National
Association of St. Paul, Minnesota, to Serve as Paying Agent,
Bond Registrar, and Transfer Agent, Approving the Paying
Agent and Bond Registrar and Transfer Agent Agreement and
Authorizing the Execution of the Agreement
WHEREAS, $9,105,000 General Obligation Bonds, Series 2023, dated June 1, 2023,
have been sold and action should now be taken to provide for the maintenance of records,
registration of certificates and payment of principal and interest in connection with the issuance
of the Bonds; and
WHEREAS, this Council has deemed that the services offered by U.S. Bank Trust
Company, National Association of St. Paul, Minnesota, are necessary for compliance with rules,
regulations, and requirements governing the registration, transfer and payment of registered
bonds; and
WHEREAS, a Paying Agent, Bond Registrar and Transfer Agent Agreement(hereafter
"Agreement")has been prepared to be entered into between the City and U.S. Bank Trust
Company,National Association.
Now, Therefore, Be it Resolved by the City Council of the City of Iowa City, State of
Iowa:
1. That U.S. Bank Trust Company, National Association of St. Paul, Minnesota, is
hereby appointed to serve as Paying Agent, Bond Registrar and Transfer Agent in connection
with the issuance of$9,105,000 General Obligation Bonds, Series 2023, dated June 1, 2023.
2. That the Agreement with U.S. Bank Trust Company, National Association of St.
Paul, Minnesota, is hereby approved and that the Mayor and Clerk are authorized to sign the
Agreement on behalf of the City.
3
Passed and Approved this 16th day of May, 2023.
Mayo -
ATTEST:
iirCaZe
Acti g City er
4
AGREEMENT RELATING TO PAYING AGENCY,REGISTRAR AND
TRANSFER AGENCY
THIS PAYING AGENT/BOND REGISTRAR AGREEMENT(this"Agreement"),is entered into as of June
1, 2023 by,and between the City of Iowa City,Iowa(the"Issuer"),and U.S.Bank Trust Company National Association
("Bank"),as Paying Agent and Bond Registrar.
RECITALS
WHEREAS the Issuer has duly authorized and provided for the issuance of its Bonds,entitled General Obligation
Bonds,Series 2023 (the "Bonds")in an aggregate principal amount of$9,105,000 to be issued as fully registered bonds
without coupons;
WHEREAS the Issuer will ensure all things necessary to make the Bonds the valid obligations of the Issuer,in
accordance with their terms,will be done upon the issuance and delivery thereof;
WHEREAS the Issuer and the Bank wish to provide the terms under which Bank will act as Paying Agent to
pay the principal,redemption premium(if any)and interest on the Bonds,in accordance with the terms thereof,and under
which the Bank will act as Registrar for the Bonds;
WHEREAS the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power
and authority to perform and serve as Paying Agent and Bond Registrar for the Bonds;
WHEREAS the Issuer has duly authorized the execution and delivery of this Agreement; and all things
necessary to make this Agreement a valid agreement have been done.
NOW,THEREFORE,it is mutually agreed as follows:
ARTICLE ONE
DEFINITIONS
Section 1.01. Definitions.For all purposes of this Agreement except as otherwise expressly provided or unless
the context otherwise requires:
Definition of Terms.The terms"item","receipt","transfer","turnaround","process","business day",and other
terms used throughout the Agreement shall be deemed to have the meanings provided in Rules 17Ad-1 and 17Ad-2 of
the Regulations promulgated pursuant to the Securities Exchange Act of 1934 and Section 76.10(4)of the Code of Iowa,
as amended and in effect from time to time.
"Bank" means U.S. Bank Trust Company National Association, a national banking association organized and
existing under the laws of the United States of America.
"Bond Register" means the book or books of registration kept by the Bank in which are maintained the names
and addresses and principal amounts registered to each Registered Owner.
"Fiscal Year"means the fiscal year of the Issuer ending on June 30 of each year.
"Issuer"means City of Iowa City,Iowa.
"Paying Agent" or"Agent"means the Bank when it is performing the function of paying agent for the
Bonds.
"Person" means any individual, corporation, partnership,joint venture, association,joint stock company, trust,
unincorporated organization or government or any agency or political subdivision of a government or any entity
whatsoever.
"Registered Owner"means a Person in whose name a Bond is registered in the Bond Register.
"Registrar"means the Bank when it is performing the function of registrar for the Bonds.
"Stated Maturity"when used with respect to any Bond means the date specified in the Bond as the date on which
the principal of such Bond is due and payable.
ARTICLE TWO
APPOINTMENT OF BANK AS
PAYING AGENT AND BOND REGISTRAR
Section 2.01. Appointment and Acceptance.The Issuer hereby appoints the Bank to act as Paying Agent with
respect to the Bonds,to pay to the Registered Owners in accordance with the terms and provisions of this Agreement the
principal of,redemption premium(if any),and interest on all or any of the Bonds.
The Issuer hereby appoints the Bank as Registrar with respect to the Bonds.As Registrar,the Bank shall keep
and maintain for and on behalf of the Issuer,books and records as to the ownership of the Bonds and with respect to the
transfer and exchange thereof as herein provided.
The Bank hereby accepts its appointment,and agrees to act as Paying Agent and Bond Registrar.
Section 2.02.Compensation. As compensation for the Bank's services as Paying Agent and Bond Registrar,the
"Issuer hereby agrees to pay the Bank the fees and amounts set forth in the Bank's proposal for paying agent/registrar
services dated March 12,2015.
In addition, the Issuer agrees to reimburse the Bank, upon its request,for all reasonable and necessary out-of-
pocket expenses, disbursements, and advances, including without limitation the reasonable fees, expenses, and
disbursements made or incurred by the Bank in connection with entering into and performing under this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01.Duties of Paying Agent. As Paying Agent,the Bank,provided sufficient collected funds have been
provided to it for such purpose by or on behalf of the Issuer,shall pay on behalf of the Issuer the principal of,redemption
premium,if any,and interest on each Bond in accordance with the provisions of the Bond.
Section 3.02.Payment Dates.The Issuer hereby instructs the Bank to pay the principal of,redemption premium
(if any)and interest on the Bonds,to the extent such funds have herein been provided by the Issuer,as follows:
(a) The Issuer hereby agrees to provide the Paying Agent with sufficient funds to make principal and
interest payments as follows: (1)payment by check must be received by the Paying Agent at least 5 business
days prior to payment date and (2)payment by wire must be received by the Paying Agent by the payment
date and no later than 11:30 a.m.CST.
(b) On each payment date Agent will pay interest and,upon presentation and surrender of the matured
or called Obligations,will pay principal to each registered owner of the Obligations as of the record date by
mailing a check to each such owner.In any case where the date of maturity of interest on or principal of the
Obligations or the date fixed for redemption of any Obligations shall be a Sunday or a legal holiday or a day
on which the banking institutions are authorized by law to close,then payment of interest or principal may
be made on the succeeding business day with the same force and effect as if made on the date of maturity or
the date fixed for redemption.Provided,however,that payment of principal shall be made not later than the
second day after receipt of the matured Obligation
(c) When the Agent shall receive notice from Issuer of its option to redeem Obligations prior to maturity,
the Agent shall select the Obligations to be redeemed and give notice of the redemption thereof, all in
accordance with the terms of the Obligations and the Resolution.
The Bank shall not be required to pay interest on any funds of the Issuer for any period during which such funds
are held bythe Bank awaiting the presentation of the Bonds for payment.
ARTICLE FOUR
REGISTRAR
Section 4.01. Initial Delivery of Bonds. The Bonds will be initially registered and delivered to the purchaser
designated by the Issuer as one Bond for each maturity.If such purchaser delivers a written request to the Bank not later
than five business days prior to the date of initial delivery,the Bank will,on the date of initial delivery,deliver Bonds of
authorized denominations,registered in accordance with the instructions in such written request.
Section 4.02. Duties of Registrar.The Bank shall provide for the proper registration of transfer, exchange and
replacement of the Bonds.Every Bond surrendered for transfer or exchange shall be duly endorsed or be accompanied by
a written instrument of transfer,the signature on which has been guaranteed by an eligible guarantor institution,in form
acceptable to the Bank, duly executed by the Registered Owner thereof or his attorney duly authorized in writing.The
Registrar may request any supporting documentation it deems necessary or appropriate to affect a re-registration. Bank
shall comply at all times with such rules,regulations, and requirements as may govern the registration, transfer and
payment of registered Bonds including without limitation Chapters 76, 384, 554.8101 et seq. Code of Iowa and
standards issued from time to time by the Municipal Securities Rulemaking Board of the United States and any other
securities industry standard and the requirements of the Internal Revenue Code of 1986.
For purposes of determining the registered owners of the Bonds, the record date shall be deemed to be the
fifteenth day of the month preceding the date on which payment of principal,premium,if any, or interest is payable
to the registered owners of the Bonds("payment date")whether such payment is due to optional redemption,operation
of a sinking fund, or for any other reason.
Bank agrees that it will turnaround within three business days of receipt all items received in proper form for
transfer,process or other action pursuant to the terms of this Agreement.
Bank will promptly cancel and deliver to Issuer all Bonds or certificates representing the Bonds surrendered
to it upon payment of the principal,premium,if any,and interest owing on such Bonds.
In the event any payment check representing payment of interest or principal on the Bonds is returned to the
Bank or is not presented for payment, or if any Bonds is not presented for payment of principal or premium, if any,
at the maturity or redemption date,if funds sufficient to pay such interest on Bonds shall have been made available
to the Bank for the benefit of the owner thereof, all liability of the Issuer to the owner thereof for such interest or
payment of such Bonds shall forthwith cease, terminate and be completely discharged,and thereupon it shall be the
duty of the Bank to hold such funds,without liability for interest thereon,for the benefit of the owner of such Bonds
who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this
Agreement or on,or with respect to, such interest or Bonds.The Bank's obligation to hold such funds shall continue
for a period equal to two years and six months following the date on which such interest or principal became due,
whether at maturity,or at the date fixed for redemption thereof,or otherwise,at which time the Bank, shall surrender
any remaining funds so held to the Issuer,whereupon any claim under this Agreement by the Owners of such interest
or Bonds of whatever nature shall be made upon the Issuer.
Section 4.03. Unauthenticated Bonds. The Issuer shall provide to the Bank on a continuing basis, an adequate
inventory of unauthenticated Bonds to facilitate transfers. The Bank agrees that it will maintain such unauthenticated
Bonds in safekeeping.
Section 4.04. Form of Bond Register. The Bank as Registrar will maintain its records as Bond Registrar in
accordance with standards issued from time to time by the Municipal Securities Rulemaking Board of the United States
and any other securities industry standard and the requirements of the Internal Revenue Code of 1986 and Chapter 76 of
the Code of Iowa.
Section 4.05.Reports. The records of Bank shall be in such form as to be in compliance with standards issued
from time to time by the Municipal Securities Rulemaking Board of the United States and any other securities industry
standard and the requirements of the Internal Revenue Code of 1986 and Chapter 76 of the Code of Iowa.
Bank's records in connection with the Bonds shall remain confidential records entitled to protection and
confidentiality pursuant to Section 22.7(17),Code of Iowa. Agent agrees that its use of the records will be limited to
the purposes of this Agreement and that Agent will make no private use or permit any private access thereto. The
Bank will not release or disclose the content of the Bond Register to any person other than to the Issuer at its written
request, except upon receipt of a subpoena or court order or as may otherwise be required by law. Upon receipt of a
subpoena or court order the Bank will notify the Issuer.
Section 4.06. Cancelled Bonds. All Bonds surrendered for payment, redemption, transfer, exchange, or
replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if surrendered to the Issuer, shall be
delivered to the Bank and,if not already cancelled,shall be promptly cancelled by the Bank.The Issuer may at any time
deliver to the Bank for cancellation any Bonds previously authenticated and delivered which the Issuer may have acquired
in any manner whatsoever,and all Bonds so delivered shall be promptly cancelled by the Bank.All cancelled Bonds held
by the Bank for its retention period then in effect and shall thereafter be returned to the Issuer.
Section 4.07. Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be
destroyed,stolen or lost,the Bank shall deliver a new Bond of like amount,number,maturity date and tenor in exchange
and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond
destroyed,stolen or lost,upon the payment of the reasonable expenses and charges of the Bank in connection therewith;
and,in the case of a Bond destroyed,stolen or lost,upon filing by the owner with the Bank of evidence satisfactory to the
Bank that such Bond was destroyed,stolen or lost,and of the ownership thereof,and upon furnishing to the Bank of an
appropriate bond of indemnity in form, substance and amount as may be required by law and as is satisfactory to the
Bank.All Bonds so surrendered to the Bank shall be canceled by it and evidence of such cancellation shall be given to
the Issuer.If the mutilated,destroyed,stolen or lost Bond has already matured or been called for redemption in accordance
with its terms it shall not be necessary to issue a new Bond prior to payment,provided that the owner shall first provide
the Bank with a bond of indemnity as set forth above.
ARTICLE FIVE
THE BANK
Section 5.01.Duties of Bank.The Bank undertakes to perform the duties set forth herein.No implied duties or
obligations shall be read into this Agreement against the Bank.The Bank hereby agrees to use the funds deposited with
it for payment of the principal of and interest on the Bonds to pay the same as it shall become due and further agrees to
establish and maintain such accounts and funds as may be required for the Bank to function as Paying Agent.
Section 5.02.Reliance on Documents,Etc. (a)The Bank may conclusively rely,as to the truth of the statements
and correctness of the opinions expressed therein,on certificates or opinions expressed therein,on certificates or opinions
furnished to the Bank by the Issuer.
(b) Bank may rely conclusively and act,without further investigation,upon any list,instruction,certification,
authorization, certificate or other instrument or paper suitably guaranteed and believed by it in good faith and due
diligence in performing its functions to be genuine and to have been signed, countersigned or executed by any duly
authorized person or persons or upon the instruction of any authorized officer of Issuer or upon the advice of Issuer's
counsel; and may register any certificate representing the Bonds or may refuse to register any such certificate if in
good faith Bank deems such refusal necessary in order to avoid any liability on the part of either Issuer or Bank, and
Issuer agrees to indemnify and hold harmless the Bank from and against any and all losses,costs,claims and liability
for so relying or acting or refusing to act.
(c) No provision of this Agreement shall require the Bank to expend or risk or use its own funds for performance
of any of its duties hereunder
(d) The Bank may consult with counsel for the Issuer,and the written advice or opinion of counsel for the Issuer
shall be full authorization and protection with respect to any action taken, suffered or omitted by it hereunder in good
faith and reliance thereon.
(e)The Bank shall not be responsible for delays or failures in performance resulting from acts beyond its control,
including without limitation acts of God,strikes,lockouts,riots,acts of war or terror,epidemics,governmental regulations,
fire,communication line failures,computer viruses,power failures,earthquakes or other disasters.
(f) The Bank is authorized, to comply with fmal orders issued or process entered by any court of competent
jurisdiction with respect to any money held by the Bank hereunder. If any portion of money held by the Bank hereunder
is at any time attached, garnished or levied upon under any court order, or in case the payment, assignment, transfer,
conveyance or delivery of any such property shall be stayed or enjoined by any court order,or in case any order,judgment
or decree shall be made or entered by any court affecting such property or any part thereof,then and in any such event,
the Bank is authorized, to rely upon and comply with any such order, writ,judgment or decree which it is advised by
legal counsel selected by the Issuer;and if the Bank complies with any such order,writ,judgment or decree,it shall not
be liable to any of the parties hereto or to any other person or entity by reason of such compliance even though such order,
writ,judgment or decree may be subsequently reversed,modified,annulled,set aside or vacated.
Section 5.03. Recitals of Issuer. The recitals contained in the Bonds shall be taken as the statements of the
Issuer, and the Bank assumes no responsibility for their correctness.
Section 5.04. May Own Bonds. The Bank, in its individual or any other capacity, may become the owner or
pledgee of Bonds with the same rights it would have if it were not the Paying Agent and Bond Registrar for the Bonds.
Section 5.05.Money Held by Bank.Money held by the Bank hereunder need not be segregated from other funds.
The Bank shall have no duties with respect to investment of funds deposited with it and shall be under no obligation to pay
interest on any money received by it hereunder.
Any money deposited with or otherwise held by the Bank for the payment of the principal,redemption premium
(if any)or interest on any Bond and remaining unclaimed,by the Registered Owner(or by the Issuer(which claim by the
Issuer shall be made in writing)after maturity and prior to escheatment)will be escheated pursuant to Iowa law.If funds
are returned to the Issuer,the Issuer and the Bank agree that the Registered Owner of such Bond shall thereafter look only
to the Issuer for payment thereof,and that all liability of the Bank with respect to such moneys shall thereupon cease.
Section 5.06.Other Transactions.The Bank may engage in or be interested in any financial or other transaction
with the Issuer.
Section 5.07.Interpleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse
claim,demand, or controversy over its person as well as funds on deposit,in a court situated in Johnson County Iowa.
The Issuer and the Bank further agree that the Bank has the right to file an action in interpleader in any court situated in
Johnson County Iowa to determine the rights of any person claiming any interest herein.
Section 5.08 Insurance. The Bank shall carry insurance in the types and amounts for the duration of this
agreement as listed in the Issuer's request for paying agent/registrar services dated February 20,2015.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01.Amendment. This Agreement may be amended only by an agreement in writing signed by both of
the parties hereto.
Section 6.02.Assignment. This Agreement may not be assigned by either party without the prior written consent
of the other party.
Section 6.03.Notices.Any request,demand, authorization,direction,notice, consent,waiver or other document
provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed,faxed,sent pdf or delivered
to the Issuer or the Bank,respectively,at the address shown below,or such other address as may have been given by one
party to the other by fifteen(15)days written notice:
If to the Issuer: City of Iowa City,Iowa,Finance Department
Ms.Nicole Davies,Finance Director
410 E.Washington Street
Iowa City,IA 52240-1826
Facsimile: 319-341-4008
If to the Bank: U.S.Bank Trust Company National Association
60 Livingston Avenue
St.Paul MN 55107
Facsimile: 651-466-7431
Section 6.04.Effect of Headings.The Article and Section headings herein are for convenience of reference only
and shall not affect the construction hereof.
Section 6.05.Successors and Assigns.All covenants and agreements herein by the Issuer and the Bank shall bind
their successors and assigns,whether so expressed or not.
Section 6.06. Severability. If any provision of this Agreement shall be determined to be invalid, illegal or
unenforceable,the validity,legality and enforceability of the remaining provisions hereof shall not in any way be affected
or impaired thereby.
Section 6.07.Benefits of Agreement.Nothing herein,express or implied,shall give to any Person,other than
the parties hereto and their successors hereunder,any benefit or any legal or equitable right,remedy or claim hereunder.
Section 6.08. Entire Agreement. This Agreement shall constitute the entire agreement between the parties
hereto relative to the Bank acting as Paying Agent and Bond Registrar.
Section 6.09.Counterparts. This Agreement may be executed in any number of counterparts,each of which shall
be deemed an original and all of which shall constitute one and the same Agreement.
Section 6.10.Term and Termination.This Agreement may be terminated by either party by giving the other party
at least 90 days advance written notice.At termination of the Agreement,Agent shall deliver to Issuer any and all records,
documents or other writings made or accumulated in the performance of its duties under this Agreement and
shall refund the unearned balance,if any,of fees paid in advance by Issuer.If the Bank shall resign,or become
incapable of acting,the Issuer shall promptly appoint a successor Paying Agent and Bond Registrar
Section 6.11. Governing Law.This Agreement shall be construed in accordance with and shall be governed by
the laws of the State of Iowa.
Section 6.12.Documents to be Filed with Bank.At the time of the Bank's appointment as Paying Agent and Bond
Registrar,the Issuer shall file with the Bank the following documents: (a)a specimen Bond; (b)a copy of the opinion of
bond counsel provided to the Issuer in connection with the issuance of the Bonds;and(c)such other relevant information
that the Bank may request.
Section 6.13. Patriot Act Compliance. To help the government fight the funding of terrorism and money
laundering activities, Federal law requires all financial institutions to obtain, verify and record information that
identifies each person who opens an account. For a non-individual person such as a business entity,a charity,a Trust
or other legal entity we will ask for documentation to verify its formation and existence as a legal entity. We may
also ask to see financial statements, licenses, identification and authorization documents from individuals claiming
authority to represent the entity or other relevant documentation.
Section 6.14.Examination of Records. Issuer or its duly authorized agents may examine all records relating
to the Obligations at the principal office of the Agent at reasonable times as agreed upon with the Agent and such
records shall be subject to audit from time to time at the request of Issuer or Agent.The Agent,on request,will furnish
Issuer with a list of the names, addresses, and other information concerning the owners of the Obligations or any of
them.
Section 6.15 Electronic Transactions. The transactions described in this Agreement may be conducted and
related documents may be sent,received and stored by Electronic Means.Copies,telecopies,facsimiles,electronic files
and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such
original documents for all purposes,including the filing of any claim,action or suit in the appropriate court of law.All
notices,approvals,consents,requests and any communications to the Bank hereunder must be in writing in English and
must be in the form of a document that is signed manually or by way of an electronic signature (including electronic
images of handwritten signatures and digital signatures provided by DocuSign, Orbit, Adobe Sign or any other
electronic signature provider acceptable to the Bank). Electronic signatures believed by the Bank, to comply with the
ESIGN ACT of 2000 or other applicable law shall be deemed original signatures for all purposes.If the Issuer chooses
to use electronic signatures to sign documents delivered to the Bank hereunder, the Issuer agrees to assume all risks
arising out of its use of electronic signatures,including without limitation the risk of the Bank acting on an unauthorized
document and the risk of interception or misuse by third parties. Notwithstanding the foregoing, the Bank may in any
instance and in its sole discretion require that an original document bearing a manual signature be delivered to the Bank
in lieu of, or in addition to,any document signed via electronic signature.
IN WITNESS WHEREOF, the Issuer and the Bank have caused this agreement to be executed in their
respective names by their duly authorized representatives,in two counterparts,each of which shall be deemed an
original.
City of Iowa City,Iowa,Issuer
By:
Print Name: Bruce Teague
Title: Mayor
U.S.BANK TRUST COMPANY
NATIONAL ASSOCIATION,as Paying
Agent, Registrar and Transfer Agent
By:
Authorized Representative
Print Name:Jason R Dressel
Title: Assistant Vice President
bank.
U.S.Bank Customer Confidential
Schedule of Fees for Services as Paying
Agent
CTS01010A Acceptance Fee The acceptance fee includes the administrative review of 325.00
documents,initial set-up of the account,and other reasonably required services
up to and including the closing.This is a one-time,non-refundable fee,payable
at closing.
CTS04110 Paying Agent/Registrar/Transfer Agent Annual fee for the standard 375.00
transfer agent,registrar,and paying agent services associated with the
administration of the account. Administration fees are payable in advance.
Direct Out of Pocket Expenses Reimbursement of expenses associated with At Cost
the performance of our duties,including but not limited to publications,legal
counsel after the initial close,travel expenses and filing fees.
Extraordinary Services Extraordinary Services are duties or responsibilities
of an unusual nature,including termination,but not provided for in the governing
documents or otherwise set forth in this schedule. A reasonable charge will be
assessed based on the nature of the services and the responsibility involved.
At our option,these charges will be billed at a flat fee or at our hourly rate then
in effect.
Account approval is subject to review and qualification.Fees are subject to change at our discretion and upon written
notice.Fees paid in advance will not be prorated.The fees set forth above and any subsequent modifications thereof
are part of your agreement.Finalization of the transaction constitutes agreement to the above fee schedule,including
agreement to any subsequent changes upon proper written notice. In the event your transaction is not finalized, any
related out—of-pocket expenses will be billed to you directly.Absent your written instructions to sweep or otherwise
invest,all sums in your account will remain uninvested and no accrued interest or other compensation will be credited
to the account.Payment of fees constitutes acceptance of the terms and conditions set forth.
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT:
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all
financial institutions to obtain,verify and record information that identifies each person who opens an account.
For a non-individual person such as a business entity, a charity, a Trust or other legal entity we will ask for
documentation to verify its formation and existence as a legal entity. We may also ask to see financial statements,
licenses,identification and authorization documents from individuals claiming authority to represent the entity or the
entity or other relevant documentation.
01884874-1\10714-138
County Auditor's Certificate
kv-41/610-:1 oun Auditor of Johnson County, State of Iowa,
hereby certify that off the J day of , 2023 there was filed in my
office the Resolution of the City Council of the City off owa City, State of Iowa, adopted on the
16th day of May, 2023, such Resolution levying a tax for the purpose of paying principal and
interest on$9,105,000 of General Obligation Bonds, Series 2023, dated June 1, 2023, and
authorizing the issuance of the Bonds.
Pltiv
(County Seal) County Aliditor of JohnsrriCounty, State of
Iowa
RECEIVE;
JOHNSON CO. IOWA
MAY -2 3 2023
COUNTY AUD r TOR
02201289-1\10714-143
Council Member Taylor introduced the following Resolution
entitled "Resolution Authorizing and Providing for the Issuance of$9,105,000 General
Obligation Bonds, Series 2023, and Levying a Tax to Pay Said Bonds; Approval of the Tax
Exemption Certificate and Continuing Disclosure Certificate" and moved that it be adopted.
Council Member Bergus seconded the motion to adopt, and the roll being
called thereon, the vote was as follows:
Ayes: Alter, Bergus, Dunn, Harmsen, Taylor, Teague,
Thomas
Nays: None
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution No. 23-143
Resolution Authorizing and Providing for the Issuance of
$9,105,000 General Obligation Bonds, Series 2023, and Levying a
Tax to Pay Said Bonds; Approval of the Tax Exemption Certificate
and Continuing Disclosure Certificate
Whereas, the Issuer is duly incorporated, organized and exists under and by virtue of the
laws and Constitution of the State of Iowa; and
Whereas, the Issuer is in need of funds to pay costs of the opening, widening, extending,
grading and drainage of the right-of-way of streets, highways, avenues, alleys, and public
grounds; the construction, reconstruction, and repairing of any street and streetscape
improvements, including landscaping and the replacement or planting of trees in public areas,
related utility work, traffic control devices, lighting, sidewalks, and the acquisition of real estate
for such purposes; equipping the fire department; the acquisition, construction,reconstruction,
enlargement, improvement, and repair of bridges, culverts, retaining walls, viaducts,
underpasses, grade crossing separations, and approaches thereto; and the rehabilitation and
improvement of parks already owned, including facilities, equipment and improvements
commonly found in city parks, essential corporate purpose(s), and it is deemed necessary and
advisable that General Obligation Bonds, to the amount of Not to Exceed $7,610,000 be
authorized for said purpose(s); and
Whereas,pursuant to notice published as required by Section 384.25 of the Code of Iowa,
this Council has held a public meeting and hearing upon the proposal to institute proceedings for
the issuance of the Bonds, and the Council is therefore now authorized to proceed with the
issuance of said Bonds for such purpose(s); and
Whereas, the City is in need of funds to pay costs of the acquisition,reconstruction,
redevelopment and equipping of the Terrell Mill Skate Park, general corporate purpose(s), and it
is deemed necessary and advisable that General Obligation Bonds, to the amount of Not to
Exceed $700,000 be authorized for said purpose(s); and
5
Whereas, the Issuer has a population of more than 5,000 but not more than 75,000, and
the Bonds for these purposes do not exceed $700,000; and
Whereas, pursuant to notice published as required by Section 384.26 of the Code of Iowa,
the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above
set forth, and, no petition for referendum having been received, the Council is therefore now
authorized to proceed with the issuance of said Bonds for such purpose(s); and
Whereas, the City is,in need of funds to pay costs of the acquisition, reconstruction,
improvement and equipping of the Mercer Park Ball Diamond, general corporate purpose(s), and
it is deemed necessary and advisable that General Obligation Bonds, to the amount of Not to
Exceed $700,000 be authorized for said purpose(s); and
Whereas, the Issuer has a population of more than 5,000 but not more than 75,000, and
the Bonds for these purposes do not exceed $700,000; and
Whereas, pursuant to notice published as required by Section 384.26 of the Code of Iowa,
the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above
set forth, and, no petition for referendum having been received, the Council is therefore now
authorized to proceed with the issuance of said Bonds for such purpose(s); and
Whereas, the City is in need of funds to pay costs of the acquisition, installation,
improving and equipping of city facilities and buildings, including the animal shelter, fire
stations, and Riverside Festival Stage, general corporate purpose(s), and it is deemed necessary
and advisable that General Obligation Bonds, to the amount of Not to Exceed $700,000 be
authorized for said purpose(s); and
Whereas, the Issuer has a population of more than 5,000 but not more than 75,000, and
the Bonds for these purposes do not exceed $700,000; and
Whereas, pursuant to notice published as required by Section 384.26 of the Code of Iowa,
the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above
set forth, and, no petition for referendum having been received, the Council is therefore now
authorized to proceed with the issuance of said Bonds for such purpose(s); and
Whereas,pursuant to Section 384.28 of the Code of Iowa, it is hereby found and
determined that the various general obligation Bonds authorized as hereinabove described shall
be combined for the purpose of issuance in a single issue of$9,105,000 General Obligation
Bonds as hereinafter set forth; and
Whereas, pursuant to the provisions of Chapter 75 of the Code of Iowa, the above
mentioned Bonds were heretofore sold at public sale and action should now be taken to issue
said Bonds conforming to the terms and conditions of the best bid received at the advertised
public sale.
6
Now, Therefore, Be It Resolved By the City Council of the City of Iowa City, State of
Iowa:
Section 1. Definitions. The following terms shall have the following meanings in this
Resolution unless the text expressly or by necessary implication requires otherwise:
• "Authorized Denominations" shall mean$5,000 or any integral multiple
thereof
• "Beneficial Owner" shall mean, whenever used with respect to a Bond, the
person in whose name such Bond is recorded as the beneficial owner of such Bond by a
Participant on the records of such Participant or such person's subrogee.
• "Blanket Issuer Letter of Representations" shall mean the Representation
Letter from the Issuer to DTC, with respect to the Bonds.
• "Bond Fund" shall mean the fund created in Section 3 of this Resolution.
• "Bonds" shall mean$9,105,000 General Obligation Bonds, Series 2023,
authorized to be issued by this Resolution.
• "Cede& Co." shall mean Cede& Co., the nominee of DTC, and any
successor nominee of DTC with respect to the Bonds.
• "Continuing Disclosure Certificate" shall mean that certain Continuing
Disclosure Certificate approved under the terms of this Resolution and to be executed by
the Issuer and dated the date of issuance and delivery of the Bonds, as originally executed
and as it may be amended from time to time in accordance with the terms thereof
• "Depository Bonds " shall mean the Bonds as issued in the form of one
global certificate for each maturity, registered in the Registration Books maintained by
the Registrar in the name of DTC or its nominee.
• "DTC" shall mean The Depository Trust Company, New York,
New York, which will act as security depository for the Bond pursuant to the
Representation Letter.
• "Issuer" and "City" shall mean the City of Iowa City, State of Iowa.
• "Participants" shall mean those broker-dealers, banks and other financial
institutions for which DTC holds Bonds as securities depository.
• "Paying Agent" shall mean U.S. Bank Trust Company,National
Association, or such successor as may be approved by Issuer as provided herein and who
shall carry out the duties prescribed herein as Issuer's agent to provide for the payment of
principal of and interest on the Bonds as the same shall become due.
7
• "Project" shall mean the opening, widening, extending, grading and
drainage of the right-of-way of streets, highways, avenues, alleys, and public grounds; the
construction, reconstruction, and repairing of any street and streetscape improvements,
including landscaping and the replacement or planting of trees in public areas,related
utility work, traffic control devices, lighting, sidewalks, and the acquisition of real estate
for such purposes; equipping the fire department; the acquisition, construction,
reconstruction, enlargement, improvement, and repair of bridges, culverts, retaining
walls, viaducts, underpasses, grade crossing separations, and approaches thereto; and the
rehabilitation and improvement of parks already owned, including facilities, equipment
and improvements commonly found in city parks: the acquisition, reconstruction,
redevelopment and equipping of the Terrell Mill Skate Park; the acquisition,
reconstruction, improvement and equipping of the Mercer Park Ball Diamond; and the
acquisition, installation, improving and equipping of city facilities and buildings,
including the animal shelter, fire stations, and Riverside Festival Stage.
• "Project Fund" shall mean the fund required to be established by this
Resolution for the deposit of the proceeds of the Bonds.
• "Rebate Fund" shall mean the fund so defined in and established pursuant
to the Tax Exemption Certificate.
• "Registrar" shall mean U.S. Bank Trust Company,National Association of
St. Paul, Minnesota, or such successor as may be approved by Issuer as provided herein
and who shall carry out the duties prescribed herein with respect to maintaining a register
of the owners of the Bonds. Unless otherwise specified, the Registrar shall also act as
Transfer Agent for the Bonds.
• "Resolution" shall mean this resolution authorizing the Bonds.
• "Tax Exemption Certificate" shall mean the Tax Exemption Certificate
approved under the terms of this Resolution and to be executed by the Treasurer and
delivered at the time of issuance and delivery of the Bonds.
• "Treasurer" shall mean the Finance Director or such other officer as shall
succeed to the same duties and responsibilities with respect to the recording and payment
of the Bonds issued hereunder.
Section 2. Levy and Certification of Annual Tax; Other Funds to be Used.
a)Levy of Annual Tax. That for the purpose of providing funds to pay the
principal and interest of the Bonds hereinafter authorized to be issued, there is hereby
levied for each future year the following direct annual tax on all of the taxable property in
the City of Iowa City, State of Iowa, to-wit:
8
Fiscal Year(July 1 to June 30)
Amount Year of Collection
$1,843,450.00 2023/2024*
$1,298,700.00 2024/2025
$1,252,700.00 2025/2026
$1,206,700.00 2026/2027
$1,160,700.00 2027/2028
$1,114,700.00 2028/2029
$1,068,700.00 2029/2030
$1,027,700.00 2030/2031
$981,450.00 2031/2032
$350,200.00 2032/2033
*A levy in the amount of$1,842,750.00 has been included in the budget previously
certified and will be used together with available City funds to pay the principal and
interest of the Bond coming due in fiscal year 2023/2024.
(NOTE: For example the levy to be made and certified against the taxable valuations of
January 1, 2023 will be collected during the fiscal year commencing July 1, 2024.)
b)Resolution to be Filed With County Auditor. A certified copy of this
Resolution, which amends the Resolution authorizing the issuance and levying a tax for
the payment thereof dated March 21, 2023, shall be filed with the Auditor of Johnson
County, Iowa and the Auditor is hereby instructed in and for each of the years as
provided, to levy and assess the tax hereby authorized in Section 2 of this Resolution, in
like manner as other taxes are levied and assessed, and such taxes so levied in and for
each of the years aforesaid be collected in like manner as other taxes of the City are
collected, and when collected be used for the purpose of paying principal and interest on
said Bonds issued in anticipation of the tax, and for no other purpose whatsoever.
c) Additional City Funds Available. Principal and interest coming due at any time
when the proceeds of said tax on hand shall be insufficient to pay the same shall be
promptly paid when due from current funds of the City available for that purpose and
reimbursement shall be made from such special fund in the amounts thus advanced.
Section 3. Bond Fund. Said tax shall be assessed and collected each year at the same
time and in the same manner as, and in addition to, all other taxes in and for the City, and when
collected they shall be converted into a special fund within the Debt Service Fund to be known
as the "General Obligation Bond Fund No. 1" (the "Bond Fund"), which is hereby pledged for
and shall be used only for the payment of the principal of and interest on the Bonds hereinafter
authorized'to be issued; and also there shall be apportioned to said fund its proportion of taxes
received by the City from property that is centrally assessed by the State of Iowa.
Section 4. Application of Bond Proceeds. Proceeds of the Bonds, other than accrued
interest except as may be provided below, shall be credited to the Project Fund and expended
9
therefrom for the purposes of issuance. Any amounts on hand in the Project Fund shall be
available for the payment of the principal of or interest on the Bonds at any time that other funds
shall be insufficient to the purpose, in which event such funds shall be repaid to the Project Fund
at the earliest opportunity. Any balance on hand in the Project Fund and not immediately
required for its purposes may be invested not inconsistent with limitations provided by law or
this Resolution.
Section 5. Investment of Bond Fund Proceeds. All moneys held in the Bond Fund,
provided for by Section 3 of this Resolution shall be invested in investments permitted by
Chapter 12B, Code of Iowa, 2023, as amended, or deposited in financial institutions which are
members of the Federal Deposit Insurance Corporation and the deposits in which are insured
thereby and all such deposits exceeding the maximum amount insured from time to time by
FDIC or its equivalent successor in any one financial institution shall be continuously secured in
compliance with Chapter 12C of the Code of Iowa, 2023, as amended, or otherwise by a valid
pledge of direct obligations of the United States Government having an equivalent market value.
All such interim investments shall mature before the date on which the moneys are required for
payment of principal of or interest on the Bonds as herein provided.
Section 6. Bond Details, Execution and Redemption.
a)Bond Details. General Obligation Bonds of the City in the amount of
$9,105,000, shall be issued pursuant to the provisions of Sections 384.25, 384.26 and
384.28 of the Code of Iowa for the aforesaid purposes. The Bonds shall be designated
"General Obligation Bond, Series 2023",be dated June 1, 2023, and bear interest from
the date thereof, until payment thereof, at the office of the Paying Agent, said interest
payable on December 1, 2023, and semiannually thereafter on the 1st day of June and
December in each year until maturity at the rates hereinafter provided.
The Bonds shall be executed by the manual or facsimile signature of the Mayor
and attested by the manual or facsimile signature of the Clerk, and impressed or printed
with the seal of the City and shall be fully registered as to both principal and interest as
provided in this Resolution; principal, interest and premium, if any, shall be payable at
the office of the Paying Agent by mailing of a check to the registered owner of the Bond.
The Bonds shall be in the denomination of$5,000 or multiples thereof. The Bonds shall
mature and bear interest as follows:
10
Principal Interest Maturity
Amount Rate June 1st
$1,395,000 5.000% 2024
$920,000 5.000% 2025
$920,000 5.000% 2026
$920,000 5.000% 2027
$920,000 5.000% 2028
$920,000 5.000% 2029
$920,000 5.000% 2030
$925,000 5.000% 2031
$925,000 5.000% 2032
$340,000 3.000% 2033
b)Redemption.
i. Optional Redemption. Bonds maturing after June 1, 2030, may be
called for optional redemption by the Issuer on that date or any date thereafter,
from any funds regardless of source, in whole or from time to time in part, in any
order of maturity and within an annual maturity by lot. The terms of redemption
shall be par,plus accrued interest to date of call.
Thirty days' written notice of redemption shall be given to the registered
owner of the Bond. Failure to give written notice to any registered owner of the
Bonds or any defect therein shall not affect the validity of any proceedings for the
redemption of the Bonds. All Bonds or portions thereof called for redemption
will cease to bear interest after the specified redemption date, provided funds for
their redemption are on deposit at the place of payment. Written notice will be
deemed completed upon transmission to the owner of record.
If selection by lot within a maturity is required, the Registrar shall
designate the Bonds to be redeemed by random selection of the names of the
registered owners of the entire annual maturity until the total amount of Bonds to
be called has been reached.
If less than all of a maturity is called for redemption, the Issuer will notify
DTC of the particular amount of such maturity to be redeemed prior to maturity.
DTC will determine by lot the amount of each Participant's interest in such
maturity to be redeemed and each Participant will then select by lot the beneficial
ownership interests in such maturity to be redeemed. All prepayments shall be at
a price of par plus accrued interest.
Section 7. Issuance of Bonds in Book-Entry Form., Replacement Bonds.
a)Notwithstanding the other provisions of this Resolution regarding registration,
ownership, transfer, payment and exchange of the Bonds, unless the Issuer determines to
11
permit the exchange of Depository Bonds for Bonds in Authorized Denominations,the
Bonds shall be issued as Depository Bonds in denominations of the entire principal
amount of each maturity of Bonds (or, if a portion of said principal amount is prepaid,
said principal amount less the prepaid amount). The Bonds must be registered in the
name of Cede & Co., as nominee for DTC. Payment of semiannual interest for any
Bonds registered in the name of Cede & Co. will be made by wire transfer or New York
Clearing House or equivalent next day funds to the account of Cede & Co. on the interest
payment date for the Bonds at the address indicated or in the Representation Letter.
b)The Bonds will be initially issued in the form of separate single authenticated
fully registered bonds in the amount of each stated maturity of the Bonds. Upon initial
issuance, the ownership of the Bonds will be registered in the registry books of the U.S.
Bank Trust Company, National Association kept by the Paying Agent and Registrar in
the name of Cede& Co., as nominee of DTC. The Paying Agent and Registrar and the
Issuer may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds
registered in its name for the purposes of payment of the principal or redemption price of
or interest on the Bonds, selecting the Bonds or portions to be redeemed, giving any
notice permitted or required to be given to registered owners of Bonds under the
Resolution of the Issuer, registering the transfer of Bonds, obtaining any consent or other
action to be taken by registered owners of the Bonds and for other purposes. The Paying
Agent, Registrar and the Issuer have no responsibility or obligation to any Participant or
Beneficial Owner of the Bonds under or through DTC with respect to the accuracy of
records maintained by DTC or any Participant; with respect to the payment by DTC or
Participant of an amount of principal or redemption price of or interest on the Bonds;
with respect to any notice given to owners of Bonds under the Resolution; with respect to
the Participant(s) selected to receive payment in the event of a partial redemption of the
Bonds, or a consent given or other action taken by DTC as registered owner of the Bonds.
The Paying Agent and Registrar shall pay all principal of and premium, if any, and
interest on the Bonds only to Cede & Co. in accordance with the Representation Letter,
and all payments are valid and effective to fully satisfy and discharge the Issuer's
obligations with respect to the principal of and premium, if any, and interest on the Bonds
to the extent of the sum paid. DTC must receive an authenticated Bond for each separate
stated maturity evidencing the obligation of the Issuer to make payments of principal of
and premium, if any, and interest. Upon delivery by DTC to the Paying Agent and
Registrar of written notice that DTC has determined to substitute a new nominee in place
of Cede & Co., the Bonds will be transferable to the new nominee in accordance with this
Section.
c) In the event the Issuer determines that it is in the best interest of the Beneficial
Owners that they be able to obtain Bonds certificates, the Issuer may notify DTC and the
Paying Agent and Registrar, whereupon DTC will notify the Participants, of the
availability through DTC of Bonds certificates. The Bonds will be transferable in
accordance with this Section. DTC may determine to discontinue providing its services
with respect to the Bonds at any time by giving notice to the Issuer and the Paying Agent
and Registrar and discharging its responsibilities under applicable law. In this event, the
Bonds will be transferable in accordance with this Section.
12
d)Notwithstanding any other provision of the Resolution to the contrary, so long
as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments
with respect to the principal of and premium, if any, and interest on the Bond and all
notices must be made and given, respectively to DTC as provided in the Representation
letter.
e) In connection with any notice or other communication to be provided to
Bondholders by the Issuer or the Paying Agent and Registrar with respect to a consent or
other action to be taken by Bondholders, the Issuer or the Paying Agent and Registrar, as
the case may be, shall establish a record date for the consent or other action and give
DTC notice of the record date not less than 15 calendar days in advance of the record
date to the extent possible. Notice to DTC must be given only when DTC is the sole
Bondholder.
f) The Representation Letter is on file with DTC and sets forth certain matters
with respect to, among other things, notices, consents and approvals by Bondholders and
payments on the Bonds. The execution and delivery of the Representation Letter to DTC
by the Issuer is ratified and confirmed.
g) In the event that a transfer or exchange of the Bonds is permitted under this
Section, the transfer or exchange may be accomplished upon receipt by the Registrar
from the registered owners of the Bonds to be transferred or exchanged and appropriate
instruments of transfer. In the event Bond certificates are issued to holders other than
Cede & Co., its successor as nominee for DTC as holder of all the Bonds, or other
securities depository as holder of all the Bonds, the provisions of the Resolution apply to,
among other things, the printing of certificates and the method or payment of principal of
and interest on the certificates. Any substitute depository shall be designated in writing
by the Issuer to the Paying Agent. Any such substitute depository shall be a qualified and
registered "clearing agency" as provided in Section 17A of the Securities Exchange Act
of 1934, as amended. The substitute depository shall provide for(i) immobilization of
the Depository Bonds, (ii) registration and transfer of interests in Depository Bonds by
book entries made on records of the depository or its nominee and (iii)payment of
principal of, premium, if any, and interest on the Bonds in accordance with and as such
interests may appear with respect to such book entries.
h)The officers of the Issuer are authorized and directed to prepare and furnish to
the purchaser, and to the attorneys approving the legality of Bonds, certified copies of
proceedings, ordinances, resolutions and records and all certificates and affidavits and
other instruments as may be required to evidence the legality and marketability of the
Bonds, and all certified copies, certificates, affidavits and other instruments constitute
representations of the Issuer as to the correctness of all stated or recited facts.
Section 8. Registration of Bonds; Appointment of Registrar; Transfer; Ownership;
Delivery; and Cancellation.
a)Registration. The ownership of Bonds may be transferred only by the making
of an entry upon the books kept for the registration and transfer of ownership of the
13
Bonds, and in no other way. U.S. Bank Trust Company, National Association is hereby
appointed as Bond Registrar under the terms of this Resolution and under the provisions
of a separate agreement with the Issuer filed herewith which is made a part hereof by this
reference. Registrar shall maintain the books of the Issuer for the registration of
ownership of the Bonds for the payment of principal of and interest on the Bonds as
provided in this Resolution. All Bonds shall be negotiable as provided in Article 8 of the
Uniform Commercial Code and Section 384.31 of the Code of Iowa, subject to the
provisions for registration and transfer contained in the Bonds and in this Resolution.
b)Transfer. The ownership of any Bond may be transferred only upon the
Registration Books kept for the registration and transfer of Bonds and only upon
surrender thereof at the office of the Registrar together with an assignment duly executed
by the holder or his duly authorized attorney in fact in such form as shall be satisfactory
to the Registrar, along with the address and social security number or federal employer
identification number of such transferee (or, if registration is to be made in the name of
multiple individuals, of all such transferees). In the event that the address of the
registered owner of a Bond (other than a registered owner which is the nominee of the
broker or dealer in question) is that of a broker or dealer, there must be disclosed on the
Registration Books the information pertaining to the registered owner required above.
Upon the transfer of any such Bond, a new fully registered Bond, of any denomination or
denominations permitted by this Resolution in aggregate principal amount equal to the
unmatured and unredeemed principal amount of such transferred fully registered Bond,
and bearing interest at the same rate and maturing on the same date or dates shall be
delivered by the Registrar.
c) Registration of Transferred Bonds. In all cases of the transfer of the Bonds, the
Registrar shall register, at the earliest practicable time, on the Registration Books, the
Bonds, in accordance with the provisions of this Resolution.
d)Ownership. As to any Bond, the person in whose name the ownership of the
same shall be registered on the Registration Books of the Registrar shall be deemed and
regarded as the absolute owner thereof for all purposes, and payment of or on account of
the principal of any such Bonds and the premium, if any, and interest thereon shall be
made only to or upon the order of the registered owner thereof or his legal representative.
All such payments shall be valid and effectual to satisfy and discharge the liability upon
such Bond, including the interest thereon, to the extent of the sum or sums so paid.
e) Cancellation. All Bonds which have been redeemed shall not be reissued but
shall be cancelled by the Registrar. All Bonds which are cancelled by the Registrar shall
be destroyed and a certificate of the destruction thereof shall be furnished promptly to the
Issuer; provided that if the Issuer shall so direct, the Registrar shall forward the cancelled
Bonds to the Issuer.
f) Non-Presentment of Bonds. In the event any payment check, wire, or
electronic transfer of funds representing payment of principal of or interest on the Bonds
is returned to the Paying Agent or if any bond is not presented for payment of principal at
the maturity or redemption date, if funds sufficient to pay such principal of or interest on
14
Bonds shall have been made available to the Paying Agent for the benefit of the owner
thereof, all liability of the Issuer to the owner thereof for such interest or payment of such
Bonds shall forthwith cease, terminate and be completely discharged, and thereupon it
shall be the duty of the Paying Agent to hold such funds, without liability for interest
thereon, for the benefit of the owner of such Bonds who shall thereafter be restricted
exclusively to such funds for any claim of whatever nature on his part under this
Resolution or on, or with respect.to, such interest or Bonds. The Paying Agent's
obligation to hold such funds shall continue for a period equal to two years and six
months following the date on which such interest or principal became due, whether at
maturity, or at the date fixed for redemption thereof, or otherwise, at which time the
Paying Agent shall surrender any remaining funds so held to the Issuer, whereupon any
claim under this Resolution by the Owners of such interest or Bonds of whatever nature
shall be made upon the Issuer.
g) Registration and Transfer Fees. The Registrar may furnish to each owner, at
the Issuer's expense, one bond for each annual maturity. The Registrar shall furnish
additional Bonds in lesser denominations (but not less than the minimum denomination)
to an owner who so requests.
Section 9. Reissuance of Mutilated, Destroyed, Stolen or Lost Bonds. In case any
outstanding Bond shall become mutilated or be destroyed, stolen or lost, the Issuer shall at the
request of Registrar authenticate and deliver a new Bond of like tenor and amount as the Bond so
mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond to
Registrar, upon surrender of such mutilated Bond, or in lieu of and substitution for the Bond
destroyed, stolen or lost, upon filing with the Registrar evidence satisfactory to the Registrar and
Issuer that such Bond has been destroyed, stolen or lost and proof of ownership thereof, and
upon furnishing the Registrar and Issuer with satisfactory indemnity and complying with such
other reasonable regulations as the Issuer or its agent may prescribe and paying such expenses as
the Issuer may incur in connection therewith.
Section 10. Record Date. Payments of principal and interest, otherwise than upon full
redemption, made in respect of any Bond, shall be made to the registered holder thereof or to
their designated agent as the same appear on the books of the Registrar on the 15th day of the
month preceding the payment date. All such payments shall fully discharge the obligations of
the Issuer in respect of such Bonds to the extent of the payments so made. Upon receipt of the
final payment of principal, the holder of the Bond shall surrender the Bond to the Paying Agent.
Section 11. Execution,Authentication and Delivery of the Bonds. Upon the adoption of
this Resolution, the Mayor and Clerk shall execute the Bonds by their manual or authorized
signature and deliver the Bonds to the Registrar, who shall authenticate the Bonds and deliver the
same to or upon order of the Purchaser. No Bond shall be valid or obligatory for any purpose or
shall be entitled to any right or benefit hereunder unless the Registrar shall duly endorse and
execute on such Bond a Certificate of Authentication substantially in the form of the Certificate
herein set forth. Such Certificate upon any Bond executed on behalf of the Issuer shall be
conclusive evidence that the Bond so authenticated has been duly issued under this Resolution
and that the holder thereof is'entitled to the benefits of this Resolution.
15
No Bonds shall be authenticated and delivered by the Registrar unless and until there
shall have been provided the following:
1. A certified copy of the Resolution of Issuer authorizing the issuance of the Bonds;
2. A written order of Issuer signed by the Treasurer of the Issuer directing the
authentication and delivery of the Bonds to or upon the order of the Purchaser
upon payment of the purchase price as set forth therein;
3. The approving opinion of Ahlers & Cooney, P.C., Bond Counsel, concerning the
validity and legality of all the Bonds proposed to be issued.
Section 12. Right to Name Substitute Paying Agent or Registrar. Issuer reserves the right
to name a substitute, successor Registrar or Paying Agent upon giving prompt written notice to
each registered bondholder.
Section 13. Form of Bond. Bonds shall be printed substantially in the form as follows:
"STATE OF IOWA"
"COUNTY OF JOHNSON"
"CITY OF IOWA CITY"
"GENERAL OBLIGATION BOND"
"SERIES 2023"
CORPORATE PURPOSE
Rate:
Maturity:
Bond Date: June 1, 2023
CUSIP No.:
"Registered"
Certificate No.
Principal Amount: $
The City of Iowa City, State of Iowa, a municipal corporation organized and existing
under and by virtue of the Constitution and laws of the State of Iowa(the "Issuer"), for value
received, promises to pay from the source and as hereinafter provided, on the maturity date
indicated above, to
(Registration panel to be completed by Registrar or Printer with name of Registered
Owner).
or registered assigns, the principal sum of(enter principal amount in long form)Thousand
Dollars in lawful money of the United States of America, on the maturity date shown above, only
upon presentation and surrender hereof at the office of U.S. Bank Trust Company, National
Association, Paying Agent of this issue, or its successor, with interest on the sum from the date
16
hereof until paid at the rate per annum specified above, payable on December 1, 2023, and
semiannually thereafter on the 1st day of June and December in each year.
Interest and principal shall be paid to the registered holder of the Bond as shown on the
records of ownership maintained by the Registrar as of the 15th day of the month preceding such
interest payment date. Interest shall be computed on the basis of a 360-day year of twelve 30-
day months.
This Bond is issued pursuant to the provisions of Sections 384.25, 384.26 and 384.28 of
the Code of Iowa, for the purpose of paying costs of the opening, widening, extending, grading
and drainage of the right-of-way of streets, highways, avenues, alleys, and public grounds; the
construction, reconstruction, and repairing of any street and streetscape improvements, including
landscaping and the replacement or planting of trees in public areas, related utility work, traffic
control devices, lighting, sidewalks, and the acquisition of real estate for such purposes;
equipping the fire department; the acquisition, construction, reconstruction, enlargement,
improvement, and repair of bridges, culverts, retaining walls, viaducts,underpasses, grade
crossing separations, and approaches thereto; and the rehabilitation and improvement of parks
already owned, including facilities, equipment and improvements commonly found in city parks:
the acquisition, reconstruction, redevelopment and equipping of the Terrell Mill Skate Park; the
acquisition, reconstruction, improvement and equipping of the Mercer Park Ball Diamond; and
the acquisition, installation, improving and equipping of city facilities and buildings, including
the animal shelter, fire stations, and Riverside Festival Stage, in conformity to a Resolution of
the Council of said City duly passed and approved.
Unless this certificate is presented by an authorized representative of The Depository
Trust Company, a limited purpose trust company ("DTC"), to the Issuer or its agent for
registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede & Co. or such other name as requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other Issuer as is requested by an authorized
representative of DTC), Any Transfer, Pledge Or Other Use Hereof For Value Or Otherwise By
Or To Any Person Is Wrongful inasmuch as the registered owner hereof, Cede & Co., has an
interest herein.
Bonds maturing after June 1, 2030 may be called for optional redemption by the Issuer
and paid before maturity on said date or any date thereafter, from any funds regardless of source,
in whole or from time to time in part, in any order of maturity and within an annual maturity by
lot. The terms of redemption shall be par, plus accrued interest to date of call.
Thirty days' written notice of redemption shall be given to the registered owner of the
Bond. Failure to give written notice to any registered owner of the Bonds or any defect therein
shall not affect the validity of any proceedings for the redemption of the Bonds. All bonds or
portions thereof called for redemption will cease to bear interest after the specified redemption
date, provided funds for their redemption are on deposit at the place of payment. Written notice
will be deemed completed upon transmission to the owner of record.
17
If selection by lot within a maturity is required, the Registrar shall designate the Bonds to
be redeemed by random selection of the names of the registered owners of the entire annual
maturity until the total amount of Bonds to be called has been reached.
If less than all of a maturity is called for redemption, the Issuer will notify DTC of the
particular amount of such maturity to be redeemed prior to maturity. DTC will determine by lot
the amount of each Participant's interest in such maturity to be redeemed and each Participant
will then select by lot the beneficial ownership interests in such maturity to be redeemed. All
prepayments shall be at a price of par plus accrued interest.
Ownership of this Bond may be transferred only by transfer upon the books kept for such
purpose by U.S. Bank Trust Company,National Association, the Registrar. Such transfer on the
books shall occur only upon presentation and surrender of this Bond at the office of the Registrar
as designated below, together with an assignment duly executed by the owner hereof or his duly
authorized attorney in the form as shall be satisfactory to the Registrar. Issuer reserves the right
to substitute the Registrar and Paying Agent but shall, however, promptly give notice to
registered Bondholders of such change. All bonds shall be negotiable as provided in Article 8 of
the Uniform Commercial Code and Section 384.31 of the Code of Iowa, subject to the provisions
for registration and transfer contained in the Bond Resolution.
This Bond is a "qualified tax-exempt obligation" designated by the City for purposes of
Section 265(b)(3)(B) of the Internal Revenue Code of 1986.
And it is hereby represented and certified that all acts, conditions and things requisite,
according to the laws and Constitution of the State of Iowa, to exist, to be had, to be done, or to
be performed precedent to the lawful issue of this Bond,have been existent,had, done and
performed as required by law; that provision has been made for the levy of a sufficient
continuing annual tax on all the taxable property within the territory of the Issuer for the payment
of the principal and interest of this Bond as the same will respectively become due; that such
taxes have been irrevocably pledged for the prompt payment hereof, both principal and interest;
and the total indebtedness of the Issuer including this Bond, does not exceed the constitutional or
statutory limitations.
In Testimony Whereof,the Issuer by its Council,has caused this Bond to be signed by
the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature
of its City Clerk, with the seal of the City printed or impressed hereon, and to be authenticated by
the manual signature of an authorized representative of the Registrar, U.S. Bank Trust Company,
National Association, St. Paul, Minnesota.
Date of authentication:
This is one of the Bonds described in the within mentioned
Resolution, as registered by U.S. Bank Trust Company,National
Association.
U.S. Bank Trust Company, National Association, Registrar
18
By:
Authorized Signature
Registrar and Transfer Agent: U.S. Bank Trust Company,
National Association
Paying Agent: U.S. Bank Trust Company,
National Association
See Reverse for Certain Definitions
(Seal)
(Signature Block)
City Of Iowa City, State of Iowa
By: (manual or facsimile signature)
Mayor
ATTEST:
By: (manual or facsimile signature)
City Clerk
(Information Required for Registration)
Assignment
For value received, the undersigned hereby sells, assigns and transfers unto
(Social Security or Tax Identification No.
) the within Bond and does hereby irrevocably constitute and appoint
attorney in fact to transfer the said Bond on the books kept
for registration of the within Bond, with full power of substitution in the premises.
Dated:
(Person(s) executing this Assignment sign(s) here)
Signature)
Guaranteed)
19
Important- Read Carefully
The signature(s) to this Power must correspond with the name(s) as written upon the face
of the certificate(s) or bond(s) in every particular without alteration or enlargement or any
change whatever. Signature guarantee must be provided in accordance with the
prevailing standards and procedures of the Registrar and Transfer Agent. Such standards
and procedures may require signature to be guaranteed by certain eligible guarantor
institutions that participate in a recognized signature guarantee program.
Information Required For Registration Of Transfer
Name of Transferee(s)
Address of Transferee(s)
Social Security or Tax Identification
Number of Transferee(s)
Transferee is a(n):
Individual* Corporation
Partnership Trust
*If the Bond is to be registered in the names of multiple individual owners, the names of all such
owners and one address and social security number must be provided.
The following abbreviations, when used in the inscription on the face of this Bond, shall
be construed as though written out in full according to applicable laws or regulations:
TEN COM- as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with rights of survivorship and not as tenants in common
IA UNIF TRANS MIN ACT - Custodian
(Cust) (Minor)
Under Iowa Uniform Transfers to Minors Act
(State)
Additional Abbreviations May
Also Be Used Though Not in The Above List
(End of form of Bond)
Section 14. Closing Documents. The Mayor and City Clerk are authorized and directed
to execute, attest, seal and deliver for and on behalf of the City any other additional certificates,
documents, or other papers and perform all other acts, including without limitation the execution
of all closing documents, as they may deem necessary or appropriate in order to implement and
carry out the intent and purposes of this Resolution.
Section 15. Contract Between Issuer and Purchaser. This Resolution constitutes a
contract between said City and the purchaser of the Bonds.
20
Section 16. Non-Arbitrage Covenants. The Issuer reasonably expects and covenants that
no use will be made of the proceeds from the issuance and sale of the Bonds issued hereunder
which will cause any of the Bonds to be classified as arbitrage bonds within the meaning of
Sections 148(a) and (b) of the Internal Revenue Code of the United States, as amended, and that
throughout the term of the Bonds it will comply with the requirements of statutes and regulations
issued thereunder.
To the best knowledge and belief of the Issuer, there are no facts or circumstances that
would materially change the foregoing statements or the conclusion that it is not expected that
the proceeds of the Bonds will be used in a manner that would cause the Bonds to be arbitrage
bonds.
Section 17. Approval of Tax Exemption Certificate. Attached hereto is a form of Tax
Exemption Certificate stating the Issuer's reasonable expectations as to the use of the proceeds of
the Bonds. The form of Tax Exemption Certificate is approved. The Issuer hereby agrees to
comply with the provisions of the Tax Exemption Certificate and the provisions of the Tax
Exemption Certificate are hereby incorporated by reference as part of this Resolution. The
Finance Director is hereby directed to make and insert all calculations and determinations
necessary to complete the Tax Exemption Certificate at issuance of the Bonds to certify as to the
reasonable expectations and covenants of the Issuer at that date.
Section 18. Continuing Disclosure. The Issuer hereby covenants and agrees that it will
comply with and carry out all of the provisions of the Continuing Disclosure Certificate, and the
provisions of the Continuing Disclosure Certificate are hereby incorporated by reference as part
of this Resolution and made a part hereof. Notwithstanding any other provision of this
Resolution, failure of the Issuer to comply with the Continuing Disclosure Certificate shall not
be considered an event of default under this Resolution; however, any holder of the Bonds or
Beneficial Owner may take such actions as may be necessary and appropriate, including seeking
specific performance by court order, to cause the Issuer to comply with its obligations under the
Continuing Disclosure Certificate. For purposes of this section, "Beneficial Owner" means any
person which(a)has the power, directly or indirectly, to vote or consent with respect to, or to
dispose of ownership of, any Bond (including persons holding Bonds through nominees,
depositories or other intermediaries), or(b) is treated as the owner of any Bonds for federal
income tax purposes.
Section 19. Additional Covenants, Representations and Warranties of the Issuer. The
Issuer certifies and covenants with the purchasers and holders of the Bonds from time to time
outstanding that the Issuer through its officers, (a) will make such further specific covenants,
representations and assurances as may be necessary or advisable; (b) comply with all
representations, covenants and assurances contained in the Tax Exemption Certificate, which
Tax Exemption Certificate shall constitute a part of the contract between the Issuer and the
owners of the Bonds;(c) consult with Bond Counsel (as defined in the Tax Exemption
Certificate); (d)pay to the United States, as necessary, such sums of money representing required
rebates of excess arbitrage profits relating to the Bonds;(e) file such forms, statements and
supporting documents as may be required and in a timely manner; and (f) if deemed necessary or
advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other
persons to assist the Issuer in such compliance.
21
Section 20. Amendment of Resolution to Maintain Tax Exemption. This Resolution may
be amended without the consent of any owner of the Bonds if, in the opinion of Bond Counsel,
such amendment is necessary to maintain tax exemption with respect to the Bonds under
applicable Federal law or regulations.
Section 21. Qualified Tax-Exempt Obligations. For the sole purpose of qualifying the
Bonds as "Qualified Tax-Exempt Obligations" pursuant to Section 265(b)(3)(B) of the Internal
Revenue Code of the United States, the Issuer hereby designates the Bonds as qualified tax-
exempt obligations and represents that the reasonably anticipated amount of tax-exempt
governmental and qualified 501(c)(3) obligations which will be issued during the current
calendar year will not exceed Ten (10) Million Dollars.
Section 22. Repeal of Conflicting Resolutions or Ordinances. All ordinances and
resolutions and parts of ordinances and resolutions in conflict herewith are hereby repealed.
Section 23. Severability Clause. If any section, paragraph, clause or provision of this
Resolution be held invalid, such invalidity shall not affect any of the remaining provisions
hereof, and this Resolution shall become effective immediately upon its passage and approval.
Passed and Approved this 16th day of May, 2023.
( / : 4 r
ES\LAA,c_c_
Mayor 41
Attest:
r
Acing City er
22
Certificate
State of Iowa )
) SS
County of Johnson )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the 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 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 Council hereto of 1 ed this 16th day of
May , 2023.
Acti g City C rk, City - Iowa City, State of
Iowa
(SEAL)
02201149-1\10714-143
Tax Exemption Certificate
Of
City of Iowa City, County of Johnson, State of Iowa, Issuer
$9,105,000 General Obligation Bonds, Series 2023
This instrument was prepared by:
Ahlers & Cooney, P.C.
100 Court Avenue, Suite 600
Des Moines, Iowa 50309
(515) 243-7611
Table of Contents •
This Table of Contents is not a part of this Tax Exemption Certificate and is provided
only for convenience of reference.
Introduction
ARTICLE I Definitions
ARTICLE II Specific Certifications, Representations And Agreements
Section 2.1 Authority to Certify and Expectations
Section 2.2 Receipts and Expenditures of Sale Proceeds
Section 2.3 Purpose of Bonds
Section 2.4 Facts Supporting Tax-Exemption Classification
Section 2.5 Facts Supporting Temporary Periods for Proceeds
Section 2.6 Resolution Funds at Restricted or Unrestricted Yield
Section 2.7 Pertaining to Yields
ARTICLE III Rebate
Section 3.1 Records
Section 3.2 Rebate Fund
Section 3.3 Exceptions to Rebate •
Section 3.4 Calculation of Rebate Amount
Section 3.5 Rebate Requirements and the Bond Fund
Section 3.6 Investment of the Rebate Fund
Section 3.7 Payment to the United States
Section 3.8• Records
Section 3.9 Additional Payments
ARTICLE IV Investment Restrictions
Section 4.1 Avoidance of Prohibited Payments
Section 4.2 Market Price Requirement
Section 4.3 Investment in Certificates of Deposit
Section 4.4 Investment Pursuant to Investment Contracts and Agreements
Section 4.5 Records
Section 4.6 Investments to be Legal
ARTICLE V General Covenants
ARTICLE VI Amendments And Additional Agreements
Section 6.1 Opinion of Bond Counsel; Amendments
• Section 6.2 Additional Covenants, Agreements
Section 6.3 Internal Revenue Service Audits
Section 6.4 Amendments
ARTICLE VII Qualified Tax Exempt Obligations
EXHIBIT A PURCHASER'S CERTIFICATE 19
EXHIBIT B MUNICIPAL ADVISOR'S CERTIFICATE 24
•
Tax Exemption Certificate
City of Iowa City, State of Iowa
This Tax Exemption Certificate made and entered into on June 1, 2023, by the City of
Iowa City, County of Johnson, State of Iowa(the "Issuer").
Introduction
This Certificate is executed and delivered in connection with the issuance by the Issuer of
its $9,105,000 General Obligation Bonds, Series 2023 (the "Bonds"). The Bonds are issued
pursuant to the provisions of the Resolution of the Issuer authorizing the issuance of the Bonds.
Such Resolution provides that the covenants contained in this Certificate constitute a part of the
Issuer's contract with the owners of the Bonds.
The Issuer recognizes that under the Code (as defined below) the tax-exempt status of the
interest received by the owners of the Bonds is dependent upon, among other things, the facts,
circumstances, and reasonable expectations of the Issuer as to future facts not in existence at this
time, as well as the observance of certain covenants in the future. The Issuer covenants that it
will take such action with respect to the Bonds as may be required by the Code, and pertinent
legal regulations issued thereunder in order to establish and maintain the tax-exempt status of the
Bonds, including the observance of all specific covenants contained in the Resolution and this
Certificate.
ARTICLE I
Definitions
The following terms as used in this Certificate shall have the meanings set forth below.
The terms defined in the Resolution shall retain the meanings set forth therein when used in this
Certificate. Other terms used in this Certificate shall have the meanings set forth in the Code or
in the Regulations.
• "Annual Debt Service" means the principal of and interest on the Bonds
scheduled to be paid during a given Bond Year.
• "Bonds" means the $9,105,000 aggregate principal amount of General
Obligation Bonds, Series 2023, of the Issuer issued in registered form pursuant to the
Resolution.
• "Bond Counsel" means Ahlers & Cooney, P.C., Des Moines, Iowa, or an
attorney at law or a firm of attorneys of nationally recognized standing in matters
pertaining to the tax-exempt status of interest on obligations issued by states and their
political subdivisions, duly admitted to the practice of law before the highest court of any
State of the United States of America.
3
• "Bond Fund" means the Sinking Fund described in the Resolution.
• "Bond Purchase Agreement" means the binding contract in writing for the
sale of the Bonds.
• "Bond Year" as defined in Regulation 1.148-1(b), means a one-year period
beginning on the day after expiration of the preceding Bond Year. The first Bond Year
shall be the one-year or shorter period beginning on the Closing Date and ending on a
principal or interest payment date, unless Issuer selects another date.
• "Bond Yield" means that discount rate which produces an amount equal to
the Issue Price of the Bonds when used in computing the present value of all payments of
principal and interest to be paid on the Bonds, using semiannual compounding on a 360-
day year as computed under Regulation 1.148-4.
• "Certificate" means this Tax Exemption Certificate.
• "Closing" means the delivery of the Bonds in exchange for the agreed
upon purchase price.
• "Closing Date" means the date of Closing.
• "Code" means the Internal Revenue Code of 1986, as amended, and any
statutes which replace or supplement the Internal Revenue Code of 1986.
• "Computation Date" means each five-year period from the Closing Date
through the last day of the fifth and each succeeding fifth Bond Year.
• "Excess Earnings" means the amount earned on all Nonpurpose
Investments minus the amount which would have been earned if such Nonpurpose
Investments were invested at a rate equal to the Bond Yield,plus any income attributable
to such excess.
• "Final Bond Retirement Date" means the date on which the Bonds are
actually paid in full.
• "Governmental Obligations" means direct general obligations of, or
obligations the timely payment of the principal of and interest on which is
unconditionally guaranteed by the United States.
• "Gross Proceeds" as defined in Regulation 1.148-1(b), means any Proceeds
of the Bonds and any replacement proceeds (as defined in Regulation 1.148-1(c)) of the
Bonds.
• "Gross Proceeds Funds" means the Project Fund, Proceeds held to pay
cost of issuance, and any other fund or account held for the benefit of the owners of the
Bonds or containing Gross Proceeds of the Bonds except the Bond Fund and the Rebate
Fund.
4
• "Issue Price" as defined in Regulation 1.148-1(b) and (f)(2), means the
price determined pursuant to the Special Rule for Competitive Sales in accordance with
Regulation 1.148-1(f)(2)(iii). The Issuer hereby elects to utilize the Special Rule for
Competitive Sales and treats the reasonably expected initial offering price to the public as
of the sale date as the issue price of the Bonds. The Purchasers have certified the Issue
Price to be not more than $9,999,132.70, as set forth in Exhibit A.
• "Issuer" means the City of Iowa City, a municipal corporation in the
County of Johnson, State of Iowa.
• "Minor Portion of the Bonds", as defined in Regulation 1.148-2(g), means
the lesser of five(5)percent of Proceeds or$100,000. The Minor Portion of the Bonds is
computed to be $100,000.
• "Nonpurpose Investments" means any investment property which is
acquired with Gross Proceeds and is not acquired to carry out the governmental purpose
of the Bonds, and may include but is not limited to U.S. Treasury bonds, corporate bonds,
or certificates of deposit.
• "Proceeds" as defined in Regulation 1.148-1(b), means Sale Proceeds,
investment proceeds and transferred proceeds of the Bonds.
• "Project" means the opening, widening, extending, grading and drainage
of the right-of-way of streets, highways, avenues, alleys, and public grounds; the
construction, reconstruction, and repairing of any street and streetscape improvements,
including landscaping and the replacement or planting of trees in public areas, related
utility work, traffic control devices, lighting, sidewalks, and the acquisition of real estate
for such purposes; equipping the fire department; the acquisition, construction,
reconstruction, enlargement, improvement, and repair of bridges, culverts, retaining
walls, viaducts, underpasses, grade crossing separations, and approaches thereto; and the
rehabilitation and improvement of parks already owned, including facilities, equipment
and improvements commonly found in city parks: the acquisition,reconstruction,
redevelopment and equipping of the Terrell Mill Skate Park; the acquisition,
reconstruction, improvement and equipping of the Mercer Park Ball Diamond; and the
acquisition, installation, improving and equipping of city facilities and buildings,
including the animal shelter, fire stations, and Riverside Festival Stage, as more fully
described in the Resolution.
• "Project Fund" shall mean the fund required to be established by the
Resolution for the deposit of the Proceeds of the Bonds.
• "Purchasers" means Robert W. Baird & Co., Inc. of Milwaukee,
Wisconsin, constituting the initial purchasers of the Bonds from the Issuer.
• "Rebate Amount" means the amount computed as described in this
Certificate.
5
• "Rebate Fund" means the fund to be created, if necessary, pursuant to this
Certificate.
• "Rebate Payment Date" means a date chosen by the Issuer which is not
more than 60 days following each Computation Date or the Final Bond Retirement Date.
• "Regulations" means the Income Tax Regulations, amendments and
successor provisions promulgated by the Department of the Treasury under Sections 103,
148 and 149 of the Code, or other Sections of the Code relating to "arbitrage bonds",
including without limitation Regulations 1.148-1 through 1.148-11, 1.149(b)-1, 1.149-
d(1), 1.150-1 and 1.150-2.
• "Replacement Proceeds" include, but are not limited to, sinking funds,
amounts that are pledged as security for an issue, and amounts that are replaced because
of a sufficiently direct nexus to a governmental purpose of an issue.
• "Resolution" means the resolution of the Issuer adopted on May 16, 2023,
authorizing the issuance of the Bonds.
• "Sale Proceeds" as defined in Regulation 1.148-1(b), means any amounts
actually or constructively received from the sale of the Bonds, including amounts used to
pay underwriter's discount or compensation and accrued interest other than pre-issuance
accrued interest.
• "Sinking Fund" means the Bond Fund.
• "SLGS" means demand deposit Treasury securities of the State and Local
Government Series.
• "Tax Exempt Obligations" means bonds or other obligations the interest
on which is excludable from the gross income of the owners thereof under Section 103 of
the Code and include certain regulated investment companies, stock in tax-exempt mutual
funds and demand deposit SLGS.
• "Taxable Obligations" means all investment property, obligations or
securities other than Tax Exempt Obligations.
• "Verification Certificate" means the certificate attached to this Certificate
as Exhibit A, setting forth the offering prices at which the Purchaser will reoffer and sell
the Bonds to the public.
ARTICLE II
Specific Certifications, Representations
And Agreements
The Issuer hereby certifies,represents and agrees as follows:
6
Section II.1 Authority to Certify and Expectations
(a) The undersigned officer of the Issuer along with other officers of the
Issuer, are charged with the responsibility of issuing the Bonds.
(b) This Certificate is being executed and delivered in part for the purposes
specified in Section 1.148-2(b)(2) of the Regulations and is intended (among other
purposes) to establish reasonable expectations of the Issuer at this time.
(c) The Issuer has not been notified of any disqualification or proposed
disqualification of it by the Commissioner of the Internal Revenue Service as a bond
issuer which may certify bond issues under Section 1.148-2(b)(2) of the Regulations.
(d) The certifications, representations and agreements set forth in this Article
II are made on the basis of the facts, estimates and circumstances in existence on the date
hereof, including the following: (1) with respect to amounts expected to be received from
delivery of the Bonds, amounts actually received, (2) with respect to payments of
amounts into various funds or accounts, review of the authorizations or directions for
such payments made by the Issuer pursuant to the Resolution and this Certificate, (3)
with respect to the Issue Price, the certifications of the Purchasers as set forth in the
Verification Certificate, (4) with respect to expenditure of the Proceeds of the Bonds,
actual expenditures and reasonable expectations of the Issuer as to when the Proceeds
will be spent for purposes of the Project, (5) with respect to Bond Yield, review of the
Verification Certificate, and (6) with respect to the amount of governmental and qualified
501(c)(3) bonds to be issued during the calendar year, the budgeting and present planning
of Issuer. The Issuer has no reason to believe such facts, estimates or circumstances are
untrue or incomplete in any material way.
(e) To the best of the knowledge and belief of the undersigned officer of the
Issuer, there are no facts, estimates or circumstances that would materially change the
representations, certifications or agreements set forth in this Certificate, and the
expectations herein set out are reasonable.
(f) No arrangement exists under which the payment of principal or interest on
the Bonds would be directly or indirectly guaranteed by the United States or any agency
or instrumentality thereof.
(g) After the expiration of any applicable temporary periods, and excluding
investments in a bona fide debt service fund or reserve fund, not more than five percent
(5%) of the Proceeds of the Bonds will be (a) used to make loans which are guaranteed
by the United States or any agency or instrumentality thereof, or(b) invested in federally
insured deposits or accounts.
(h) The Issuer will file with the Internal Revenue Service in a timely fashion
Form 8038-G, Information Return for Tax-Exempt Governmental Obligations with
respect to the Bonds and such other reports required to comply with the Code and
applicable Regulations.
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(i) The Issuer will take no action which would cause the Bonds to become
"private activity bonds" as defined in Section 141 (a) of the Code, including any use of
the Project by any person other than a governmental unit if such use will be by other than
a member of the general public. None of the Proceeds of the Bonds will be used directly
or indirectly to make or finance loans to any person other than a governmental unit.
(j) The Issuer will make no change in the nature or purpose of the Project
except as provided in Section 6.1 hereof.
(k) Except as provided in the Resolution, the Issuer will not establish any
sinking fund,bond fund, reserve fund, debt service fund or other fund reasonably
expected to be used to pay debt service on the Bonds (other than the Bond Fund),
exercise its option to redeem Bonds prior to maturity or effect a refunding of the Bonds.
(1) No bonds or other obligations of the Issuer(1) were sold in the 15 days
preceding the date of sale of the Bonds, (2) were sold or will be sold within the 15 days
after the date of sale of the Bonds, (3)have been delivered in the past 15 days or(4) will
be delivered in the next 15 days pursuant to a common plan of financing for the issuance
of the Bonds and payable out of substantially the same source of revenues.
(n) None of the Proceeds of the Bonds will be used directly or indirectly to
replace funds of the Issuer used directly or indirectly to acquire obligations having a yield
higher than the Bond Yield.
(n) No portion of the Bonds is issued for the purpose of investing such portion
at a higher yield than the Bond Yield.
(o) The Issuer does not expect that the Proceeds of the Bonds will be used in a
manner that would cause them to be "arbitrage bonds" as defined in Section 148(a) of the
Code. The Issuer does not expect that the Proceeds of the Bonds will be used in a
manner that would cause the interest on the Bonds to be includible in the gross income of
the owners of the Bonds under the Code. The Issuer will not intentionally use any
portion of the Proceeds to acquire higher yielding investments.
(p) The Issuer will not use the Proceeds of the Bonds to exploit the difference
between tax-exempt and taxable interest rates to obtain a material financial advantage.
(q) The Issuer has not issued more Bonds, issued the Bonds earlier, or allowed
the Bonds to remain outstanding longer than is reasonably necessary to accomplish the
governmental purposes of the Bonds. In fact, the Bonds will not remain outstanding
longer than 120% of the economic useful life of the assets financed with the Proceeds of
the Bonds.
(r) The Bonds will not be Hedge Bonds as described in Section 149(g)(3) of
the Code because the Issuer reasonably expects that it will meet the Expenditure test set
forth in Section 2.5(b)hereof and that 50% or more of the Proceeds will not be invested
in Nonpurpose Investments having a substantially guaranteed yield for four or more
years.
8
Except for costs of issuance, all Sale Proceeds and investment earnings thereon will be
expended for costs of the type that would be chargeable to capital accounts under the Code
pursuant to federal income tax principles if the Issuer were treated as a corporation subject to
federal income taxation.
Section II.2 Receipts and Expenditures of Sale Proceeds
Sale Proceeds (par plus re-offering premium of$894,132.70), less underwriter's discount
of$57,270.45, received at Closing are expected to be deposited and expended as follows:
(a) $67,665.00 representing costs of issuing the Bonds will be used within six
months of the Closing Date to pay the costs of issuance of the Bonds (with any excess
remaining on deposit in the Project Fund); and
(b) $9,874,197.25 will be deposited into the Project Fund and will be used
together with earnings thereon to pay the costs of the Project and will not exceed the
amount necessary to accomplish the governmental purposes of the Bonds.
Section 1I.3 Purpose of Bonds
The Issuer is issuing the Bonds to pay the costs of the opening, widening, extending,
grading and drainage of the right-of-way of streets, highways, avenues, alleys, and public
grounds; the construction, reconstruction, and repairing of any street and streetscape
improvements, including landscaping and the replacement or planting of trees in public areas,
related utility work, traffic control devices, lighting, sidewalks, and the acquisition of rear estate
for such purposes; equipping the fire department; the acquisition, construction, reconstruction,
enlargement, improvement, and repair of bridges, culverts, retaining walls, viaducts,
underpasses, grade crossing separations, and approaches thereto; and the rehabilitation and
improvement of parks already owned, including facilities, equipment and improvements
commonly found in city parks: the acquisition, reconstruction,redevelopment and equipping of
the Terrell Mill Skate Park; the acquisition, reconstruction, improvement and equipping of the
Mercer Park Ball Diamond; and the acquisition, installation, improving and equipping of city
facilities and buildings, including the animal shelter, fire stations, and Riverside Festival Stage
Section II.4 Facts Supporting Tax-Exemption Classification
Governmental Bonds
Private Business Use/Private Security or Payment Tests
The Bonds are considered to be governmental bonds, not subject to the provisions
of the alternate minimum tax. The Proceeds will be used for the purposes described in
Section 2.3 hereof These bonds are not private activity bonds because no amount of
Proceeds of the Bonds is to be used in a trade or business carried on by a non-
governmental unit. Rather, the Proceeds will be used to finance the general government
operations and facilities of the Issuer described in Section 2.3 hereof None of the
payment of principal or interest on the Bonds will be derived from, or secured by, money
or property used in a trade or business of a non-governmental unit. In addition, none of
9
the governmental operations or facilities of the Issuer being financed with the Proceeds of
the Bonds are subject to any lease,management contract or other similar arrangement or
to any arrangement for use other than as by the general public.
Private Loan Financing Test
No amount of Proceeds of the Bonds is to be used directly or indirectly to make or
finance loans to persons other than governmental units.
Section II.5 Facts Supporting Temporary Periods for Proceeds
(a) Time Test. Not later than six months after the Closing Date, the Issuer
will incur a substantial binding obligation to a third party to expend at least 5% of the net
Sale Proceeds of the Bonds.
(b) Expenditure Test. Not less than 85% of the net Sale Proceeds will be
expended for Project costs, including the reimbursement of other funds expended to date,
within a three-year temporary period from the Closing Date.
(c) Due Diligence Test. Not later than six months after Closing, work on the
Project will have commenced and will proceed with due diligence to completion.
(d) Proceeds of the Bonds representing less than six months accrued interest
on the Bonds will be spent within six months of this date to pay interest on the Bonds,
and will be invested without restriction as to yield for a temporary period not in excess of
six months.
Section I1.6 Resolution Funds at Restricted or Unrestricted Yield
(a) Proceeds of the Bonds will be held and accounted for in the manner
provided in the Resolution. The Issuer has not and does not expect to create or establish
any other bond fund, reserve fund, or similar fund or account for the Bonds. The Issuer
has not and will not pledge any moneys or Taxable Obligations in order to pay debt
service on the Bonds or restrict the use of such moneys or Taxable Obligations so as to
give reasonable assurances of their availability for such purposes.
(b) Any monies which are invested beyond a temporary period are expected to
constitute less than a major portion of the Bonds or to be restricted for investment at a
yield not greater than one-eighth of one percent above the Bond Yield.
(c) The Issuer has established and will use the Bond Fund primarily to
achieve a proper matching of revenues and debt service within each Bond Year and the
Issuer will apply moneys deposited into the Bond Fund to pay the principal of and
interest on the Bonds. Such Fund will be depleted at least once each Bond Year except
for a reasonable carryover amount. The carryover amount will not exceed the greater of
(1) one year's earnings on the Bond Fund or(2) one-twelfth of Annual Debt Service. The
Issuer will spend moneys deposited from time to time into such fund within 13 months
after the date of deposit. Revenues, intended to be used to pay debt service on the Bonds,
10
will be deposited into the Bond Fund as set forth in the Resolution. The Issuer will spend
interest earned on moneys in such fund not more than 12 months after receipt.
Accordingly, the Issuer will treat the Bond Fund as a bona fide debt service fund as
defined in Regulation 1.148-1(b).
Investment of amounts on deposit in the Bond Fund will not be subject to
arbitrage rebate requirements as the Bonds meet the safe harbor set forth in Regulation
1.148-3(k), because the average annual debt service on the Bonds will not exceed
$2,500,000.
(d) The Minor Portion of the Bonds will be invested without regard to yield.
Section II.7 Pertaining to Yields
(a) The purchase price of all Taxable Obligations to which restrictions apply
under this Certificate as to investment yield or rebate of Excess Earnings, if any, has been
and shall be calculated using (i) the price taking into account discount, premium and
accrued interest, as applicable, actually paid or(ii) the fair market value if less than the
price actually paid and if such Taxable Obligations were not purchased directly from the
United States Treasury. The Issuer will acquire all such Taxable Obligations directly
from the United States Treasury or in an arm's length transaction without regard to any
amounts paid to reduce the yield on such Taxable Obligations. The Issuer will not pay or
permit the payment of any amounts (other than to the United States)to reduce the yield
on any Taxable Obligations. Obligations pledged to the payment of debt service on the
Bonds, or deposited into any reserve fund after they have been acquired by the Issuer will
be treated as though they were acquired for their fair market value on the date of such
pledge or deposit. Obligations on deposit in any reserve fund on the Closing Date shall
be treated as if acquired for their fair market value on the Closing Date.
(b) Qualified guarantees have not been used in computing yield.
(c) The Bond Yield has been computed as not less than 2.571036 percent.
This Bond Yield has been computed on the basis of a purchase price for the Bonds equal
to the Issue Price.
ARTICLE III
Rebate
Section III.1 Records
Sale Proceeds of the Bonds will be held and accounted for in the manner provided in the
Resolution. The Issuer will maintain adequate records for funds created by the Resolution and
this Certificate including all deposits, withdrawals, transfers from, transfers to, investments,
reinvestments, sales, purchases, redemptions, liquidations and use of money or obligations until
six years after the Final Bond Retirement Date.
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Section III.2 Rebate Fund
(a) In the Resolution, the Issuer has covenanted to pay to the United States the
Rebate Amount, an amount equal to the Excess Earnings on the Gross Proceeds Funds, if
any, at the times and in the manner required or permitted and subject to stated special
rules and allowable exceptions.
(b) The Issuer may establish a fund pursuant to the Resolution and this
Certificate which is herein referred to as the Rebate Fund. The Issuer will invest and
expend amounts on deposit in the Rebate Fund in accordance with this Certificate.
(c) Moneys in the Rebate Fund shall be held by the Issuer or its designee and,
subject to Sections 3.4, 3.5 and 6.1 hereof, shall be held for future payment to the United
States as contemplated under the provisions of this Certificate and shall not constitute
part of the trust estate held for the benefit of the owners of the Bonds or the Issuer.
(d) The Issuer will pay to the United States from legally available money of
the Issuer(whether or not such available money is on deposit in any fund or account
related to the Bonds) any amount which is required to be paid to the United States.
Section II1.3 . Exceptions to Rebate
The Issuer reasonably expects that the Bonds are eligible for one or more exceptions from
the arbitrage rebate rules set forth in the Regulations. If any Proceeds are ineligible, or become
ineligible, for an exception to the arbitrage rebate rules, the Issuer will comply with the
provisions of this Article III. A description of the applicable rebate exception(s) is as follows:
• Eighteen-Month Exception
The Gross Proceeds of the Bonds are expected to be expended for the governmental
purposes for which the Bonds were issued in accordance with the following schedule:
1) 15 percent spent within six months of the Closing Date;
2) 60 percent spent within one year of the Closing Date;
3) 100 percent spent within eighteen months of the Closing Date (subject to 5
percent retainage for not more than one year).
In any event, the Issuer expects that the 5%reasonable retainage will be spent within 30 months
of the Closing Date. For purposes of determining compliance with the six-month and twelve-
month spending periods, the amount of investment earnings included shall be based on the
Issuer's reasonable expectations that the average annual interest rate on investments will be not
more than 6%. For purposes of determining compliance with the eighteen-month spending
period, the amount of investment earnings included shall be based on actual earnings. If the
Issuer fails to meet the foregoing expenditure schedule, the Issuer shall comply with the arbitrage
rebate requirements of the Code.
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• Election to Treat as Construction Bonds.
The Issuer reasonably expects that more than 75 percent of the "available construction
proceeds" ("ACP") of the Bonds, as defined in Section 148(f)(4)(C)(vi) of the Code, will be used
for construction expenditures. ACP includes the issue price of the issue plus the earnings on
such issue. Not less than the following percentages of the ACP will be spent within the
following periods:
1) 10 percent spent within six months of the Closing Date;
2) 45 percent spent within one year of the Closing Date;
3) 75 percent spent within eighteen months of the Closing Date;
4) 100 percent spent within two years of the Closing Date (subject to 5
percent retainage for not more than one year).
In any event, the Issuer expects that the 5% reasonable retainage will be spent within a three-year
period beginning on the Closing Date. A failure to spend an amount that does not exceed the
lesser of(i) 3%of the issue price or(ii) $250,000, is disregarded if the Issuer exercises due
diligence to complete the Project.
• Election with respect to future earnings
Pursuant to Section 1.148-7(f)(2) of the Regulations, the Issuer elects to use actual
investment earnings of the ACP in determining compliance with the above schedule.
If the Issuer fails to meet the foregoing expenditure schedule, the Issuer shall comply
with the arbitrage rebate requirements of the Code.
Section III.4 Calculation of Rebate Amount
(a) As soon after each Computation Date as practicable, the Issuer shall, if
necessary, calculate and determine the Excess Earnings on the Gross Proceeds Funds (the
"Rebate Amount"). All calculations and determinations with respect to the Rebate
Amount will be made on the basis of actual facts as of the Computation Date and
reasonable expectations as to future events.
(b) If the Rebate Amount exceeds the amount currently on deposit in the
Rebate Fund, the Issuer may deposit an amount in the Rebate Fund such that the balance
in the Rebate Fund after such deposit equals the Rebate Amount. If the amount in the
Rebate Fund exceeds the Rebate Amount, the Issuer may withdraw such excess amount
provided that such withdrawal can be made from amounts originally transferred to the
Rebate Fund and not from earnings thereon, which may not be transferred, and only if
such withdrawal may be made without liquidating investments at a loss.
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Section III.5 Rebate Requirements and the Bond Fund
It is expected that the Bond Fund described in the Resolution and Section 2.6(c) of this
Certificate will be treated as a bona fide debt service fund as defined in Regulation 1.148-1(b).
As such, any amount earned during a Bond Year on the Bond Fund and amounts earned on such
amounts, if allocated to the Bond Fund, will not be taken into account in calculating the Rebate
Amount for the reasons outlined in Section 2.6(c) hereof However, should the Bond Fund cease
to be treated as a bona fide debt service fund, the Bond Fund will become subject to the rebate
requirements set forth in Section 3.4 hereof.
Section III.6 Investment of the Rebate Fund
(a) Immediately upon a transfer to the Rebate Fund, the Issuer may invest all
amounts in the Rebate Fund not already invested and held in the Rebate Fund, to the
extent possible, in(1) SLGS, such investments to be made at a yield of not more than
one-eighth of one percent above the Bond Yield, (2) Tax Exempt Obligations, (3) direct
obligations of the United States or(4) certificates of deposit of any bank or savings and
loan association. All investments in the Rebate Fund shall be made to mature not later
than the next Rebate Payment Date.
(b) If the Issuer invests in SLGS, the Issuer shall file timely subscription
forms for such securities (if required). To the extent possible, amounts received from
maturing SLGS shall be reinvested immediately in zero yield SLGS maturing on or
before the next Rebate Payment Date.
Section III.7 Payment to the United States
(a) On each Rebate Payment Date, the Issuer will pay to the United States at
least ninety percent (90%) of the Rebate Amount less a computation credit of$1,000 per
Bond Year for which the payment is made.
(b) The Issuer will pay to the United States not later than sixty (60) days after
the Final Bond Retirement Date all the rebatable arbitrage as of such date and any income
attributable to such rebatable arbitrage as described in Regulation 1.148-3(f)(2).
(c) If necessary, on each Rebate Payment Date, the Issuer will mail a check to
the Internal Revenue Service Center, Ogden, UT 84201. Each payment shall be
accompanied by a copy of Form 8038-T, Arbitrage Rebate, filed with respect to the
Bonds or other information reporting form as is required to comply with the Code and
applicable Regulations.
Section III.8 Records
(a) The Issuer will keep and retain adequate records with respect to the
Bonds, the Gross Proceeds Funds, the Bond Fund, and the Rebate Fund until six years
after the Final Bond Retirement Date. Such records shall include descriptions of all
calculations of amounts transferred to the Rebate Fund, if any, and descriptions of all
calculations of amounts paid to the United States as required by this Certificate. Such
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records will also show all amounts earned on moneys invested in such funds, and the
actual dates and amounts of all principal, interest and redemption premiums (if any)paid
on the Bonds.
(b) Records relating to the investments in such Funds shall completely
describe all transfers, deposits, disbursements and earnings including:
(1) a complete list of all investments and reinvestments of amounts in
each such Fund including, if applicable, purchase price, purchase date, type of
security, accrued interest paid, interest rate, dated date, principal amount, date of
maturity, interest payment dates, date of liquidation, receipt upon liquidation,
market value of such investment on the Final Bond Retirement Date if held by the
Issuer on the Final Bond Retirement Date, and market value of the investment on
the date pledged to the payment of the Bonds or the Closing Date if different from
the purchase date.
(2) the amount and source of each payment to, and the amount,
purpose and payee of each payment from, each such Fund.
Section III.9 Additional Payments
The Issuer hereby agrees to pay to the United States from legally available money of the
Issuer(whether or not such available money is on deposit in any fund or account related to the
Bonds) any amount which is required to be paid to the United States, but which is not available
in a fund related to the Bonds for transfer to the Rebate Fund or payment to the United States.
ARTICLE IV
Investment Restrictions
Section IV.I Avoidance of Prohibited Payments
The Issuer will not enter into any transaction that reduces the amount required to be
deposited into the Rebate Fund or paid to the United States because such transaction results in a
smaller profit or a larger loss than would have resulted if the transaction had been at arm's length
and had the Bond Yield not been relevant to either party. The Issuer will not invest or direct the
investment of any funds in a manner which reduces an amount required to be paid to the United
States because such transaction results in a small profit or larger loss than would have resulted if
the transaction had been at arm's length and had the Bond Yield not been relevant to the Issuer.
In particular, notwithstanding anything to the contrary contained herein or in the Resolution, the
Issuer will not invest or direct the investment of any funds in a manner which would violate any
provision of this Article IV.
Section IV.2 Market Price Requirement
(a) The Issuer will not purchase or direct the purchase of Taxable Obligations
for more than the then available market price for such Taxable Obligations. The Issuer
15
will not sell, liquidate or direct the sale or liquidation of Taxable Obligations for less than
the then available market price.
(b) For purposes of this Certificate, United States Treasury obligations
purchased directly from the United States Treasury will be deemed to be purchased at the
market price.
Section IV.3 Investment in Certificates of Deposit
(a) Notwithstanding anything to the contrary contained herein or in the
Resolution, the Issuer will invest or direct the investment of funds on deposit in the
Reserve Fund, any other Gross Proceeds Fund, the Bond Fund, and the Rebate Fund, in a
certificate of deposit of a bank or savings bank which is permitted by law and by the
Resolution only if the purchase price of such a certificate of deposit is treated as its fair
market value on the purchase date and if the yield on the certificate of deposit is not less
than (1) the yield on reasonably comparable direct obligations of the United States; and
(2) the highest yield that is published or posted by the provider to be currently available
from the provider on reasonably comparable certificates of deposit offered to the public.
(b) The certificate of deposit described in paragraph 4.3(a) above must be
executed by a dealer who maintains an active secondary market in comparable
certificates of deposit and must be based on actual trades adjusted to reflect the size and
term of that certificate of deposit and the stability and reputation of the bank or savings
bank issuing the certificate of deposit.
Section IV.4 Investment Pursuant to Investment Contracts and Agreements
The Issuer will invest or direct the investment of funds on deposit in the Gross Proceeds
Funds, the Bond Fund, and the Rebate Fund pursuant to an investment contract(including a
repurchase agreement) only if all of the following requirements are satisfied:
(a) The Issuer makes a bona fide solicitation for the purchase of the
investment. A bona fide solicitation is a solicitation that satisfies all of the following
requirements:
(1) The bid specifications are in writing and are timely forwarded to
potential providers.
(2) The bid specifications include all material terms of the bid. A term
is material if it may directly or indirectly affect the yield or the cost of the
investment.
(3) The bid specifications include a statement notifying potential
providers that submission of a bid is a representation that the potential provider
did not consult with any other potential provider about its bid, that the bid was
determined without regard to any other formal or informal agreement that the
potential provider has with the issuer or any other person (whether or not in
connection with the Bonds), and that the bid is not being submitted solely as a
16
courtesy to the issuer or any other person for purposes of satisfying the
requirements of paragraph(d)(6)(iii)(B)(1) or (2) of Section 1.148-5 of the
Regulations.
(4) The terms of the bid specifications are commercially reasonable.
A term is commercially reasonable if there is a legitimate business purpose for the
term other than to increase the purchase price or reduce the yield of the
investment.
(5) For purchases of guaranteed investment contracts only, the terms
of the solicitation take into account the Issuer's reasonably expected deposit and
drawdown schedule for the amounts to be invested.
(6) All potential providers have an equal opportunity to bid and no
potential provider is given the opportunity to review other bids (i.e., a last look)
before providing a bid.
(7) At least three reasonably competitive providers are solicited for
bids. A reasonably competitive provider is a provider that has an established
industry reputation as a competitive provider of the type of investments being
purchased.
(b) The bids received by the Issuer meet all of the following requirements:
(1) The Issuer receives at least three bids from providers that the
Issuer solicited under a bona fide solicitation meeting the requirements of
paragraph (d)(6)(iii)(A) of Section 1.148-5 of the Regulations and that do not
have a material financial interest in the issue. A lead underwriter in a negotiated
underwriting transaction is deemed to have a material financial interest in the
issue until 15 days after the issue date of the issue. In addition, any entity acting
as a financial advisor with respect to the purchase of the investment at the time
the bid specifications are forwarded to potential providers has a material financial
interest in the issue. A provider that is a related party to a provider that has a
material financial interest in the issue is deemed to have a material financial
interest in the issue.
(2) At least one of the three bids described in paragraph
(d)(6)(iii)(B)(1) of Section 1.148-5 of the Regulations is from a reasonably
competitive provider, within the meaning of paragraph(d)(6)(iii)(A)(7) of Section
1.148-5 of the Regulations.
(3) If the Issuer uses an agent to conduct the bidding process, the agent
did not bid to provide the investment.
(c) The winning bid meets the following requirements:
17
(1) Guaranteed investment contracts. If the investment is a guaranteed
investment contract, the winning bid is the highest yielding bona fide bid
(determined net of any broker's fees).
(2) Other investments. If the investment is not a guaranteed
investment contract, the winning bid is the lowest cost bona fide bid (including
any broker's fees).
(d) The provider of the investments or the obligor on the guaranteed
investment contract certifies the administrative costs that it pays (or expects to pay, if
any) to third parties in connection with supplying the investment.
(e) The Issuer will retain the following records with the bond documents until
three years after the last outstanding bond is redeemed:
(1) For purchases of guaranteed investment contracts, a copy of the
contract, and for purchases of investments other than guaranteed investment
contracts, the purchase agreement or confirmation.
(2) The receipt or other record of the amount actually paid by the
Issuer for the investments, including a record of any administrative costs paid by
the Issuer, and the certification under paragraph(d)(6)(iii)(D) of Section 1.148-5
of the Regulations.
(3) For each bid that is submitted, the name of the person and entity
submitting the bid, the time and date of the bid, and the bid results.
(4) The bid solicitation form and, if the terms of the purchase
agreement or the guaranteed investment contract deviated from the bid solicitation
form or a submitted bid is modified, a brief statement explaining the deviation and
stating the purpose for the deviation.
(5) For purchases of investments other than guaranteed investment
contracts, the cost of the most efficient portfolio of State and Local Government
Series Securities, determined at the time that the bids were required to be
submitted pursuant to the terms of the bid specifications.
Section IV.5 Records
The Issuer will maintain records of all purchases, sales, liquidations, investments,
reinvestments, redemptions, disbursements, deposits, and transfers of amounts on deposit.
Section IV.6 Investments to be Legal
All investments required to be made pursuant to this Certificate shall be made to the
extent permitted by law. In the event that any such investment is determined to be ultra vires, it
shall be liquidated and the proceeds thereof shall be invested in a legal investment,provided that
prior to reinvesting such proceeds, the Issuer shall obtain an opinion of Bond Counsel to the
18
effect that such reinvestment will not cause the Bonds to become arbitrage bonds under Sections
103, 148, 149, or any other applicable provision of the Code.
ARTICLE V
General Covenants
The Issuer hereby covenants to perform all acts within its power necessary to ensure that
the reasonable expectations set forth in Article II hereof will be realized. The Issuer reasonably
expects to comply with all covenants contained in this Certificate.
ARTICLE VI
Amendments And Additional Agreements
Section VI.1 Opinion of Bond Counsel; Amendments
The various provisions of this Certificate need not be observed and this Certificate may
be amended or supplemented at any time by the Issuer if the Issuer receives an opinion or
opinions of Bond Counsel that the failure to comply with such provisions will not cause any of
the Bonds to become "arbitrage bonds" under the Code and that the terms of such amendment or
supplement will not cause any of the Bonds to become "arbitrage bonds" under the Code, or
otherwise cause interest on any of the Bonds to become includable in gross income for federal
income tax purposes.
Section VI.2 Additional Covenants, Agreements
The Issuer hereby covenants to make, execute and enter into (and to take such actions, if
any, as may be necessary to enable it to do so) such agreements as may be necessary to comply
with any changes in law or regulations in order to preserve the tax-exempt status of the Bonds to
the extent that it may lawfully do so. The Issuer further covenants (1) to impose such limitations
on the investment or use of moneys or investments related to the Bonds, (2) to make such
payments to the United States Treasury, (3) to maintain such records, (4) to perform such
calculations, and (5) to perform such other lawful acts as may be necessary to preserve the tax-
exempt status of the Bonds.
Section VI.3 Internal Revenue Service Audits
The Internal Revenue Service has not audited the Issuer regarding any obligations issued
by or on behalf of the Issuer. To the best knowledge of the Issuer, no such obligations of the
Issuer are currently under examination by the Internal Revenue Service.
19
Section VI.4 Amendments
Except as otherwise provided in Section 6.1 hereof, all the rights, powers, duties and
obligations of the Issuer shall be irrevocable and binding upon the Issuer and shall not be subject
to amendment or modification by the Issuer.
ARTICLE VII
Qualified Tax Exempt Obligations
The Issuer, a "qualified small issuer," designates the Bonds as "qualified tax exempt
obligations" as defined in Code Section 265(b)(3) and represents that the reasonably anticipated
amount of tax-exempt governmental and qualified 501(c)(3) obligations (including for this
purpose tax exempt installment sales, lease or lease purchase agreements or other tax exempt
obligations) which will be issued during the current calendar year will not exceed ten million
dollars ($10,000,000).
In support of the foregoing, the Issuer states:
(a) In the current calendar year the Issuer has issued governmental or
qualified 501(c)(3) obligations as follows:
$9,105,000 General Obligation Bonds, Series 2023 (Covered by this Certificate)
This issue contains premium in excess of 2%, and therefore the Issuer will consider the
issue price minus reasonable underwriter compensation as the amount counting towards its bank
qualification limit.
(b) The Issuer expects to issue during the remainder of the calendar year
governmental or qualified 501(c)(3) obligations as follows:
NONE
(c) The Issuer has subordinate entities or is subordinate to another entity
governed by separate governing bodies which have issued or expect to issue
governmental or qualified 501(c)(3) obligations on behalf of the Issuer during the
calendar year which must be aggregated under Code Section 265(b)(3)(E) as follows:
NONE
(d) The Issuer is a member of or affiliated with one or more organizations
(such as an Iowa Code Chapter 28E or 28F organization or other multimember body
under which more than one governmental entity receives benefits) governed by a separate
governing body which has or expects to issue governmental or qualified 501(c)(3)
obligations during the calendar year all or a portion of which are allocable to the Issuer
under Code Section 265(b)(3)(C)(iii) as follows:
20
NONE
In Witness Whereof, the Issuer has caused this Certificate to be executed by its duly
authorized officer, all as of the day first above written.
Finance Director, City of Iowa City, State of
Iowa
(Seal)
21
Exhibit A
Iowa City, Iowa- $9,105,000 General Obligation Bonds, Series 2023
Issue Price Certificate
The undersigned, on behalf of Robert W. Baird & Co., Inc., of Milwaukee, Wisconsin,
("Purchaser"),hereby certifies as set forth below with respect to the sale of the above-captioned
obligations (the "Bonds").
1. Reasonably Expected Initial Offering Price.
a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to
the Public by Purchaser are the prices listed in Schedule A (the "Expected Offering Prices"). The
Expected Offering Prices are the prices for the Maturities of the Bonds used by Purchaser in
formulating its bid to purchase the Bonds. Attached as Schedule B is a true and correct copy of
the bid provided by Purchaser to purchase the Bonds.
b) Purchaser was not given the opportunity to review other bids prior to submitting
its bid.
c) The bid submitted by Purchaser constituted a firm offer to purchase the Bonds.
2. Defined Terms.
a) Maturity means Bonds with the same credit and payment terms. Bonds with
different maturity dates, or Bonds with the same maturity date but different stated interest rates,
are treated as separate Maturities.
b) Public means any person (including an individual, trust, estate,partnership,
association, company, or corporation) other than an Underwriter or a related party to an
Underwriter. The term "related party" for purposes of this certificate generally means any two or
more persons who have greater than 50 percent common ownership, directly or indirectly.
c) Sale Date means the first day on which there is a binding contract in writing for
the sale of a Maturity of the Bonds. The Sale Date of the Bonds is May 2, 2023.
d) Underwriter means (i) the Purchaser or any person that agrees pursuant to a
written contract with the Issuer(or with the lead underwriter to form an underwriting syndicate)
to participate in the initial sale of the Bonds to the Public, and(ii) any person that agrees
pursuant to a written contract directly or indirectly with a person described in clause (i) of this
paragraph to participate in the initial sale of the Bonds to the Public (including a member of a
selling group or a party to a retail distribution agreement participating in the initial sale of the
Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only.
Nothing in this certificate represents Purchaser's interpretation of any laws, including
22
specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the
Treasury Regulations thereunder. The undersigned understands that the foregoing information
will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax
Exemption Certificate and with respect to compliance with the federal income tax rules affecting
the Bonds, and by Ahlers & Cooney, P.C. in connection with rendering its opinion that the
interest on the Bonds is excluded from gross income for federal income tax purposes, the
preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice
that it may give to the Issuer from time to time relating to the Bonds.
Robert W. Baird & Co., Inc., of Milwaukee,
Wisconsin
By:
Name:
Dated: June 1, 2023
23
Schedule A
Expected Offering Prices
(Attached)
24
Schedule B
Copy Of Underwriter's Bid
(Attached)
25
Exhibit B
Certificate Of Municipal Advisor
Iowa City, Iowa- $9,105,000 General Obligation Bonds, Series 2023
The undersigned, on behalf of Speer Financial (the "Municipal Advisor"), as the
municipal advisor to the City of Iowa City, Iowa in connection with the issuance of the above-
captioned obligations (the "Bonds"), has assisted the Issuer in soliciting and receiving bids from
potential underwriters in connection with the sale of the Bonds in a competitive bidding process
in which bids were requested for the purchase of the Bonds at specified written terms, and
hereby certifies as set forth below with respect to the bidding process and award of the Bonds.
1. The Bonds were offered for sale at specified written terms more particularly
described in the Terms of Offering, which was distributed to potential bidders, a copy of which is
attached to this certificate as Attachment 1.
2. The Terms of Offering were disseminated electronically through
SPEERAUCTION. The method of distribution of the Terms of Offering is regularly used for
purposes of disseminating notices of sale of new issuances of municipal bonds, and notices
disseminated in such manner are widely available to potential bidders.
3. To the knowledge of the Municipal Advisor, all bidders were offered an equal
opportunity to bid to purchase the Bonds so that, for example, if the bidding process afforded any
opportunity for bidders to review other bids before providing a bid, no bidder was given an
opportunity to review other bids that was not equally given to all other bidders (that is, no
exclusive "last-look").
4. The Issuer received bids from at least three bidders who represented that they
have established industry reputations for underwriting new issuances of municipal bonds. Based
upon the Municipal Advisor's knowledge and experience in acting as the municipal advisor for
other municipal issues, the Municipal Advisor believes those representations to be accurate.
Copies of the bids received are attached to this certificate as Attachment 2.
5. The winning bidder was Robert W. Baird & Co., Inc. (the "Purchaser"), whose
bid was determined to be the best conforming bid in accordance with the terms set forth in the
Terms of Offering, as shown in the bid comparison attached as Attachment 3 to this certificate.
The Issuer awarded the Bonds to the Purchaser.
The representations set forth in this certificate are limited to factual matters only.
Nothing in this certificate represents the Municipal Advisor's interpretation of any laws,
including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended,
and the Treasury Regulations thereunder. The undersigned understands that the foregoing
information will be relied upon by the Issuer with respect to certain of the representations set
forth in the Tax Exemption Certificate and with respect to compliance with the federal income
tax rules affecting the Bonds, and by Ahlers & Cooney, P.C. in connection with rendering its
opinion that the interest on the Bonds is excluded from gross income for federal income tax
purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal
26
income tax advice that it may give to the Issuer from time to time relating to the Bonds. No
other persons may rely on the representations set forth in this certificate without the prior written
consent of the Municipal Advisor.
Speer Financial, Inc.
By:
Name:
Dated: June 1, 2023
27
Attachment 1
Terms of Offering
(Attached)
28
Attachment 2
Bids Received
(Attached)
29
Attachment 3
Bid Comparison
(Attached)
02201378-1\10714-143
30
Continuing Disclosure Certificate
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and
delivered by the City of Iowa City, State of Iowa(the "Issuer"), in connection with the issuance
of$9,105,000 General Obligation Bonds, Series 2023 (the "Bonds") dated June 1, 2023. The
Bonds are being issued pursuant to a Resolution of the Issuer approved on May 16, 2023 (the
"Resolution"). The Issuer covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate; Interpretation. This Disclosure
Certificate is being executed and delivered by the Issuer for the benefit of the Holders and
Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in
complying with S.E.C. Rule 15c2-12(b)(5). This Disclosure Certificate shall be governed by,
construed and interpreted in accordance with the Rule, and, to the extent not in conflict with the
Rule, the laws of the State. Nothing herein shall be interpreted to-require more than required by
the Rule.
Section 2. Definitions. In addition to the definitions set forth in the Resolution, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this
Section, the following capitalized terms shall have the following meanings:
"Annual Financial Information" shall mean financial information or operating data of the
type included in the final Official Statement, provided at least annually by the Issuer pursuant to,
and as described in, Sections 3 and 4 of this Disclosure Certificate.
"Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly,
to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons
holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the
owner of any Bonds for federal income tax purposes.
"Business Day" shall mean a day other than a Saturday or a Sunday or a day on which
banks in Iowa are authorized or required by law to close.
"Dissemination Agent" shall mean the Issuer or any Dissemination Agent designated in
writing by the Issuer and which has filed with the Issuer a written acceptance of such
designation.
"Financial Obligation" shall mean a(i) debt obligation; (ii) derivative instrument entered
into in connection with, or pledged as security or a source of payment for, an existing or planned
debt obligation; or(iii) guarantee of(i) or(ii). The term Financial Obligation shall not include
municipal securities as to which a final official statement has been provided to the MSRB
consistent with S.E.C. Rule 15c2-12.
"Holders" shall mean the registered holders of the Bonds, as recorded in the registration
books of the Registrar.
"Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure
Certificate.
"Municipal Securities Rulemaking Board" or"MSRB" shall mean the Municipal
Securities Rulemaking Board, 1300 I Street NW, Suite 1000, Washington, DC 20005.
"National Repository" shall mean the MSRB's Electronic Municipal Market Access
website, a/k/a "EMMA" (emma.msrb.org).
"Official Statement" shall mean the Issuer's Official Statement for the Bonds, dated May
2, 2023.
"Participating Underwriter" shall mean any of the original underwriters of the Bonds
required to comply with the Rule in connection with offering of the Bonds.
"Rule" shall mean Rule 15c2-12 adopted by the Securities and Exchange Commission
(S.E.C.)under the Securities Exchange Act of 1934, and any guidance and procedures
thereunder published by the S.E.C., as the same may be amended from time to time.
"State" shall mean the State of Iowa.
Section 3. Provision of Annual Financial Information.
a) The Issuer shall, or shall cause the Dissemination Agent to, not later than two
hundred ten(210) days after the end of the Issuer's fiscal year(presently June 30th),
commencing with information for the 2022/2023 fiscal year, provide to the National
Repository an Annual Financial Information filing consistent with the requirements of
Section 4 of this Disclosure Certificate. The Annual Financial Information filing must be
submitted in such format as is required by the MSRB (currently in "searchable PDF"
format). The Annual Financial Information filing may be submitted as a single document
or as separate documents comprising a package. The Annual Financial Information filing
may cross-reference other information as provided in Section 4 of this Disclosure
Certificate; provided that the audited financial statements of the Issuer may be submitted
separately from the balance of the Annual Financial Information filing and later than the
date required above for the filing of the Annual Financial Information if they are not
available by that date. If the Issuer's fiscal year changes, it shall give notice of such
change in the same manner as for a Listed Event under Section 5(c).
b) If the Issuer is unable to provide to the National Repository the Annual
Financial Information by the date required in subsection (a), the Issuer shall send a notice
to the Municipal Securities Rulemaking Board, if any, in substantially the form attached
as Exhibit A.
c) The Dissemination Agent shall:
i. each year file Annual Financial Information with the National
Repository; and
ii. (if the Dissemination Agent is other than the Issuer), file a report with
the Issuer certifying that the Annual Financial Information has been filed pursuant
to this Disclosure Certificate, stating the date it was filed.
Section 4. Content of Annual Financial Information. The Issuer's Annual Financial
Information filing shall contain or incorporate by reference the following:
a) The last available audited financial statements of the Issuer for the prior fiscal
year, prepared in accordance with generally accepted accounting principles promulgated
by the Financial Accounting Standards Board as modified in accordance with the
governmental accounting standards promulgated by the Governmental Accounting
Standards Board or as otherwise provided under State law, as in effect from time to time,
or, if and to the extent such financial statements have not been prepared in accordance
with generally accepted accounting principles, noting the discrepancies therefrom and the
effect thereof If the Issuer's audited financial statements for the preceding years are not
available by the time Annual Financial Information is required to be filed pursuant to
Section 3(a), the Annual Financial Information filing shall contain unaudited financial
statements of the type included in the final Official Statement, and the audited financial
statements shall be filed in the same manner as the Annual Financial Information when
they become available.
b) A table, schedule or other information prepared as of the end of the preceding
fiscal year, of the type contained in the final Official Statement under the captions:
• Debt Limit.
• Direct Debt.
• General Obligation Debt.
• Statement of Bonded Indebtedness.
• Other Obligations.
• Percentages for Taxable Valuation After Rollbacks.
• Building Permits.
• Property Valuations and Trend of Valuations-Actual (100%)
Valuations for the City.
• Property Valuations and Trend of Valuations-Taxable("Rollback")
Valuations for the City.
• Levies and Tax Collections.
• Larger Taxpayers.
• Tax Rates.
• Statement of Net Position-Governmental Activities.
• Statement of Activities-Governmental Activities.
• Balance Sheet-General Fund.
• Statement of Revenues, Expenditures and Changes in Fund
Balance-General Fund.
Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues of the Issuer or related public entities,
which have been filed with the National Repository. The Issuer shall clearly identify each such
other document so included by reference.
Section 5. Reporting of Significant Events.
a) Pursuant to the provisions of this Section, the Issuer shall give, or cause to be
given, notice of the occurrence of any of the following events with respect to the Bonds
in a timely manner not later than 10 Business Days after the day of the occurrence of the
event:
i. Principal and interest payment delinquencies;
ii. Non-payment related defaults, if material;
iii. Unscheduled draws on debt service reserves reflecting financial
difficulties;
iv. Unscheduled draws on credit enhancements relating to the Bonds
reflecting financial difficulties;
v. Substitution of credit or liquidity providers, or their failure to perform;
vi. Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue (IRS
Form 5701-TEB) or other material notices or determinations with respect to the
tax-exempt status of the Series Bonds, or material events affecting the tax-exempt
status of the Bonds;
vii. Modifications to rights of Holders of the Bonds, if material;
viii. Bond calls (excluding sinking fund mandatory redemptions), if
material, and tender offers;
ix. Defeasances of the Bonds;
x. Release, substitution, or sale of property securing repayment of the
Bonds, if material;
xi. Rating changes on the Bonds;
xii. Bankruptcy, insolvency, receivership or similar event of the Issuer;
xiii. The consummation of a merger, consolidation, or acquisition
involving the Issuer or the sale of all or substantially all of the assets of the Issuer,
other than in the ordinary course of business, the entry into a definitive agreement
to undertake such an action or the termination of a definitive agreement relating to
any such actions, other than pursuant to its terms, if material;
xiv. Appointment of a successor or additional trustee or the change of
name of a trustee, if material;
xv. Incurrence of a Financial Obligation of the Issuer, if material, or
agreement to covenants, events of default, remedies, priority rights, or other
similar terms of a Financial Obligation of the Issuer, any of which affect security
holders, if material; and
xvi. Default, event of acceleration, termination event, modification of
terms or other similar events under the terms of a Financial Obligation of the
Issuer, any of which reflect financial difficulties.
b) Whenever the Issuer obtains the knowledge of the occurrence of a Listed
Event, the Issuer shall determine if the occurrence is subject to notice only if material,
and if so shall as soon as possible determine if such event would be material under
applicable federal securities laws.
c) If the Issuer determines that knowledge of the occurrence of a Listed Event is
not subject to materiality, or determines such occurrence is subject to materiality and
would be material under applicable federal securities laws, the Issuer shall promptly, but
not later than 10 Business Days after the occurrence of the event, file a notice of such
occurrence with the Municipal Securities Rulemaking Board through the filing with the
National Repository.
Section 6. Termination of Reporting Obligation. The Issuer's obligations under this
Disclosure Certificate with respect to each Series of Bonds shall terminate upon the legal
defeasance,prior redemption or payment in full of all of the Bonds of that Series or upon the
Issuer's receipt of an opinion of nationally recognized bond counsel to the effect that, because of
legislative action or final judicial action or administrative actions or proceedings, the failure of
the Issuer to comply with the terms hereof will not cause Participating Underwriters to be in
violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as
amended.
Section 7. Dissemination Agent. The Issuer may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate,
and may discharge any such Agent, with or without appointing a successor Dissemination Agent.
The Dissemination Agent shall not be responsible in any manner for the content of any notice or
report prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination
Agent shall be the Issuer.
Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure
Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this
Disclosure Certificate may be waived, provided that the following conditions are satisfied:
a) If the amendment or waiver relates to the provisions of Section 3(a), 4, or 5(a),
it may only be made in connection with a change in circumstances that arises from a
change in legal requirements, change in law, or change in the identity, nature or status of
an obligated person with respect to the Bonds, or the type of business conducted;
b) The undertaking, as amended or taking into account such waiver, would, in the
opinion of nationally recognized bond counsel, have complied with the requirements of
the Rule at the time of the original issuance of the Bonds, after taking into account any
amendments or interpretations of the Rule, as well as any change in circumstances; and
c) The amendment or waiver either(i) is approved by the Holders of the Bonds in
the same manner as provided in the Resolution for amendments to the Resolution with
the consent of Holders, or(ii) does not, in the opinion of nationally recognized bond
counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer
shall describe such amendment in the next Annual Financial Information filing, and shall
include, as applicable, a narrative explanation of the reason for the amendment or waiver and its
impact on the type (or in the case of a change of accounting principles, on the presentation) of
financial information or operating data being presented by the Issuer. In addition, if the
amendment relates to the accounting principles to be followed in preparing financial statements,
(i) notice of such change shall be given in the same manner as for a Listed Event under Section
5(c), and (ii) the Annual Financial Information filing for the year in which the change is made
will present a comparison or other discussion in narrative form (and also, if feasible, in
quantitative form) describing or illustrating the material differences between the financial
statements as prepared on the basis of the new accounting principles and those prepared on the
basis of the former accounting principles.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed
to prevent the Issuer from disseminating any other information,using the means of dissemination
set forth in this Disclosure Certificate or any other means of communication, or including any
other information in any Annual Financial Information filing or notice of occurrence of a Listed
Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses
to include any information in any Annual Financial Information filing or notice of occurrence of
a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the
Issuer shall have no obligation under this Certificate to update such information or include it in
any future Annual Financial Information filing or notice of occurrence of a Listed Event.
Section 10. Default. In the event of a failure of the Issuer to comply with any provision
of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds may take such
actions as may be necessary and appropriate, including seeking mandate or specific performance
by court order, to cause the Issuer to comply with its obligations under this Disclosure
Certificate. Direct, indirect, consequential and punitive damages shall not be recoverable by any
person for any default hereunder and are hereby waived to the extent permitted by law. A
default under this Disclosure Certificate shall not be deemed an event of default under the
Resolution, and the sole remedy under this Disclosure Certificate in the event of any failure of
the Issuer to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The
Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure
Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its officers,
directors, employees and agents, harmless against any loss, expense and liabilities which it may
incur arising out of or in the exercise or performance of its powers and duties hereunder,
including the costs and expenses (including attorneys' fees) of defending against any claim of
liability, but excluding liabilities due to the Dissemination Agent's negligence or willful
misconduct. The obligations of the Issuer under this Section shall survive resignation or removal
of the Dissemination Agent and payment of the Bonds.
Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of
the Issuer, the Dissemination Agent, the Participating Underwriters and Holders and Beneficial
Owners from time to time of the Bonds, and shall create no rights in any other person or entity.
Section 13. Rescission Rights. The Issuer hereby reserves the right to rescind this
Disclosure Certificate without the consent of the Holders in the event the Rule is repealed by the
S.E.C. or is ruled invalid by a federal court and the time to appeal from such decision has
expired. In the event of a partial repeal or invalidation of the Rule, the Issuer hereby reserves the
right to rescind those provisions of this Disclosure Certificate that were required by those parts
of the Rule that are so repealed or invalidated.
Date: day of , 2023.
City of Iowa City, State of Iowa
By:
M or
Attest:
By:
Acti g City erk /
Exhibit A
Notice To National Repository of Failure To File Annual Financial Information
Name of Issuer: City of Iowa City, Iowa.
Name of Bond Issue: $9,105,000 General Obligation Bonds, Series 2023
Dated Date of Issue: June 1, 2023
Notice Is Hereby Given that the Issuer has not provided Annual Financial Information
with respect to the above-named Bonds as required by Section 3 of the Continuing Disclosure
Certificate delivered by the Issuer in connection with the Bonds. The Issuer anticipates that the
Annual Financial Information will be filed by
Dated: day of , 20 .
City of Iowa City, State of Iowa
By:
Its:
02182240-1\10714-143
Delivery Certificate
We the undersigned City Officials, do hereby certify that we are the officers, respectively
below indicated, of a municipal corporation in the State of Iowa, known as the City of Iowa City,
State of Iowa; that in pursuance of the provisions of Chapter 75 and Section 384.25, Code of
Iowa, there have been heretofore lawfully authorized and this day by us lawfully executed,
issued, caused to be registered, authenticated and delivered fully registered General Obligation
Bonds, Series 2023, of the City of Iowa City, State of Iowa, in the amount of$9,105,000, dated
June 1, 2023, bearing interest and maturing as follows:
Principal Interest Maturity
Amount Rate June 1st
$1,395,000 5.000% 2024
$920,000 5.000% 2025
$920,000 5.000% 2026
$920,000 5.000% 2027
$920,000 5.000% 2028
$920,000 5.000% 2029
$920,000 5.000% 2030
$925,000 5.000% 2031
$925,000 5.000% 2032
$340,000 3.000% 2033
Each of the Bonds has been executed with the manual or facsimile signature of the Mayor and
the manual or facsimile signature of the City Clerk of the City.
The Bonds have been delivered to DTC on behalf of:
Robert W. Baird & Co., Inc. of Milwaukee, Wisconsin
and have been paid for in accordance with the terms of the contract of sale and at a price of
$9,941,862.25, and accrued interest.
We further certify that no controversy or litigation is pending, prayed or threatened
involving the incorporation, organization, existence or boundaries of the City, or the titles of the
undersigned City officers to their respective positions, or the validity of the Bonds, or the power
and duty of the City to provide and apply adequate taxes for the full and prompt payment of the
principal and interest of the Bonds, and that no measure or provision for the authorization or
issuance of the Bonds has been repealed or rescinded.
We further certify that due provision has been made for the collection of sufficient taxes
to meet all payments coming due, whether of principal or of interest on the Bond Issue; that all
payments coming due before the next collection of the tax provided for as aforesaid will be paid
promptly when due from cash on hand; and that the proceedings authorizing the issuance and
delivery of the Bonds remain in full force and effect and have not been withdrawn, amended or
rescinded.
To the best of our knowledge, information and belief, we further certify that the Official
Statement dated May 2, 2023, as of its date and the date hereof, did not and does not contain any
untrue statement of material fact or omit to state a material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not
misleading.
We further certify that each of the officers whose signatures appear on the Bonds were in
occupancy and possession of their respective offices at the time the Bonds were executed and do
hereby adopt and affirm their signatures appearing in the Bonds.
We further certify that the present financial condition of the Bond is as follows:
Assessed and taxable value of all taxable property within
the City, except moneys and credits and tax free lands
(Year 2022), according to the last completed State and
County tax lists (100% - Before Rollback) $7,248,396,257
Total general obligation bonded indebtedness of the City,
including this issue $52,915,000
All other general obligation indebtedness, (including
warrants,judgments, contracts of purchase or
lease/purchase, self-insurance or local government risk
pool obligations, loan agreements, and revenue bonds
issued under Code Section 403.9), of the City of any kind $44,789,369
In Witness Whereof, we have hereunto affixed our hands at the City of Iowa City, State
of Iowa, this day of , 2023.
Mayor '
,c1\14);(311---
Actin ity C rk
Finance Director
(City Seal)
02201311-1\10714-143
•
Transcript Certificate
I, the undersigned, being first duly sworn, do hereby depose and certify that I am the duly
appointed, qualified and acting City Clerk of the City of Iowa City, State of Iowa, and that as such Clerk
I have in my possession or have access to the complete corporate records of the City and of its Council
and officials, and that I have carefully compared the transcript hereto attached with the aforesaid
corporate records and that the transcript hereto attached is a true and complete copy of all the corporate
records in relation to the authorization, issuance and disposition of$9,105,000 General Obligation Bonds,
Series 2023, of the City dated June 1, 2023, and that the transcript hereto attached contains a true and
complete statement of all the measures adopted and proceedings, acts and things had, done and performed
up to the present time, in relation to the authorization, issuance and disposition of the Bonds, and that the
City Council consists of a Mayor and six(6) Council Members, and that the offices were duly and
lawfully filled by the individuals listed in the attached transcript as of the dates and times referred to
therein.
I further certify that the City is and throughout the period of such proceedings has been governed
under the Mayor/Council form of municipal government authorized by Chapter 372, Code of Iowa,under
the provisions of its charter as recorded with the Secretary of State.
I further certify that according to the records in my office,the named members of the Council
were duly and regularly elected to such office, and were, during all of the year 2023, and now are, the
legally elected, constituted and acting City Council of the City.
I further certify that no litigation is pending,prayed or threatened affecting the validity of the
Bonds hereinabove referred to, nor affecting the title of any of the City officers and Council Members to
their official positions.
I further certify that all meetings of the City Council of the City at which action was taken in
connection with the Bonds were open to the public at all times in accordance with a notice of meeting and
tentative agenda, a copy of which was timely served on each member of the Council and was duly given
at least twenty-four hours prior to the commencement of the meeting by notification of the
communications media having requested such notice and posted on a bulletin board or other prominent
place designated for the purpose and easily accessible to the public at the principal office of the Council
all pursuant to the provisions and in accordance with the conditions of the local rules of the Council and
Chapter 21, Code of Iowa.
I further certify that no City officer or employee has any interest in the contract for the sale of the
Bonds or any matter incidental thereto, according to my best knowledge and belief.
Witness my hand and the seal of the City hereto attached this I 1:2 day of
flf\ , 2023, at Iowa City, Iowa.
Act. g City C `r1, Ci of Iowa ity, State of Iowa
(Seal)
Finally, the below stated officers whose signatures appear hereafter are now the duly
qualified and acting officials of the City, possessed of the offices as designated below, to-wit:
Mayor: Bruce Teague
(Original Sig a re)
Acting City Clerk: Rachel Kilburg
( 'gina Si ature)
Finance Director: Nicole Davies
(Original Signature)
State of Iowa )
) SS
County of Johnson )
Subscribed and sworn to before me by Bruce Teague, Rachel Kilburg and Nicole Davies
on this /(e f-» day of /17M , 2023.
Notary Public in and for Johnson County, Iowa
(Seal)
$,�*pug � TAMARA NEUMANN
' Commission Number 838058
•* MY COMMISSION WIRES
40"A MARCH 14,2025
02201298-1\10714-143
Authentication Order
The undersigned Finance Director of the City of Iowa City, State of Iowa(the "Issuer"),
pursuant to a resolution of the City Council of the City of Iowa City, authorizing the issuance
and delivery of the Bonds, acting for and on behalf of the Issuer, hereby deliver to U.S. Bank
Trust Company, National Association(the "Registrar") $9,105,000 aggregate principal amount
of the Issuer's General Obligation Bonds, Series 2023, dated June 1, 2023 in fully registered
form, bearing interest, maturing and conforming to the specifications set forth in the Resolution
(the "Bonds").
Each Bond has been executed on behalf of the Issuer with the manual or facsimile
signature of the Mayor and the manual or facsimile signature of the City Clerk. The signatures
are hereby ratified, affirmed and adopted.
The seal of the Issuer is printed or impressed thereon.
The Registrar is hereby requested to authenticate the Bonds and to complete the records
with respect to registration as provided in the Bond Resolution and the instructions of the
Original Purchaser as to designation of owners of the Bonds.
Upon such authentication, the Registrar is authorized to deliver the Bonds on behalf of
Issuer to the Original Purchaser, Robert W. Baird & Co., Inc., or their registered assigns, upon
receipt of payment therefor in immediately available funds of the agreed purchase price plus
accrued interest to the date of delivery as shown on Exhibit A attached hereto and incorporated
herein, subject to the receipt at closing of the opinion of bond counsel. The Original Purchaser
shall deposit the monies to the account of Issuer as designated in Exhibit A.
The acknowledgment of receipt of the Bonds by the Original Purchasers, or registered
assigns, shall be evidenced by separate signed receipts or certificates.
Dated: this I L.o day of I ✓ \(A v , 2023
Fi ance Director
(Seal)
Exhibit A
Closing Amounts
Deposit of Funds Instructions
(See attached closing letter of the Financial Consultant)
02201293-1\10714-143
Form 8038-G Information Return for Tax-Exempt Governmental Bonds
(Rev.October 2021) PIPUnder Internal Revenue Code section 149(e)
►See separate instructions. OMB No.1545-0047
Department of the Treasury Caution:If the issue price is under$100,000,use Form 8038-GC.
Internal Revenue Service ►Go to www.irs.gov/F80338G for instructions and the latest information.
Part I Reporting Authority Check box if Amended Return► ❑
I Issuer's name 2 Issuer's employer identification number(EIN)
City of Iowa City, Iowa
3a Name of person(other than issuer)with whom the IRS may communicate about this return(see instructions) 3b Telephone number of other person shown on 3a
4 Number and street(or P.O.box if mail is not delivered to street address) Room/suite 5 Report number(For IRS Use Only)
410 E.Washington Street 13 I-17
6 City,town,or post office,state,and ZIP code 7 Date of issue
Iowa City,Iowa 52240 Jurie 1,2023
8 Name of issue 9 CUSIP number
$9,105,000 General Obligation Bonds,Series 2023 462308 S40
10a Name and title of officer or other employee of the issuer whom the IRS may call for more information 10b Telephone number of officer or other
employee shown on 10a
Nicole Davies,Finance Director 319-356-5053
Part II Type of Issue(Enter the issue price.)See the instructions and attach schedule.
11 Education 11
12 Health and hospital 12
13 Transportation 13 $4,295,105.90
14 Public safety 14 $2,171,210.20
15 Environment(including sewage bonds) 15
16 Housing 16
17 Utilities 17
18 Other. Describe►see attached 18 $3,532,816.60
19a If bonds are TANs or RANs,check only box 19a ► ❑
b If bonds are BANs,check only box 19b ► ❑
20 If bonds are in the form of a lease or installment sale, check box ► ❑
Part III Description of Bonds.Complete for the entire issue for which this form is being filed.
(a)Final maturity date (b)Issue price (c)Stated redemption (d)Weighted (e)Yield
price at maturity average maturity
21 06/01/2033 $ 9,999,132.70 $ 9,105,000 5.084 years 2.571036 %
Part IV Uses of Proceeds of Bond Issue(including underwriters' discount)
22 Proceeds used for accrued interest 22 -0-
23 Issue price of entire issue(enter amount from line 21,column(b)) 23 9,999,132.70
24 Proceeds used for bond issuance costs(including underwriters'discount) 24 124,935.45
25 Proceeds used for credit enhancement 25 0-
26 Proceeds allocated to reasonably required reserve or replacement fund 26 -0_
27 Proceeds used to refund prior tax-exempt bonds. Complete Part V . . 27 -0-
28 Proceeds used to refund prior taxable bonds.Complete Part V . . . 28_ -o-
29 Total(add lines 24 through 28) 29 124,935.45
30 Nonrefunding proceeds of the issue(subtract line 29 from line 23 and enter amount here) . . 30 9,874,197.25
Part V Description of Refunded Bonds.Complete this part only for refunding bonds.
31 Enter the remaining weighted average maturity of the tax-exempt bonds to be refunded . . . ► 0.0000 years
32 Enter the remaining weighted average maturity of the taxable bonds to be refunded . . . . ► 0.0000 years
33 Enter the last date on which the refunded tax-exempt bonds will be called(MM/DD/YYYY) . . ►
34 Enter the date(s)the refunded bonds were issued►(MM/DD/YYYY)
For Paperwork Reduction Act Notice,see separate instructions. Cat.No.63773S Form 8038-G(Rev.10-2021)
Form 8038-G(Rev.10-2021) Page 2
Part VI Miscellaneous
35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . . . . 35 -0-
36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract
(GIC).See instructions 36a -0-
b Enter the final maturity date of the GIC►(MM/DD/YYYY) -
c Enter the name of the GIC provider► -
37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans
to other governmental units 37 -0-
38a If this issue is a loan made from the proceeds of another tax-exempt issue,check box► ❑ and enter the following information:
b Enter the date of the master pool bond►(MM/DD/YYYY)
c Enter the EIN of the issuer of the master pool bond►
d Enter the name of the issuer of the master pool bond►
39 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III)(small issuer exception),check box . . . ► ❑�
40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate,check box ► ❑
41a If the issuer has identified a hedge, check here► ❑ and enter the following information:
b Name of hedge provider► -
c Type of hedge►-
d Term of hedge►-
42 If the issuer has superintegrated the hedge,check box ► ❑
43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated
according to the requirements under the Code and Regulations(see instructions),check box ► ❑✓
44 If the issuer has established written procedures to monitor the requirements of section 148,check box ► ❑�
45a If some portion of the proceeds was used to reimburse expenditures,check here P. LI and enter the amount
of reimbursement ►
b Enter the date the official intent was adopted►(MM/DD/YYYY)
Under penalties of perjury,I declare that I have examined this return and accompanying schedules and statements,and to the best of my knowledge
Sinature and belief,they are true,correct,and complete.I further declare that I consent to the IRS's disclosure of the issuer's return information,as necessary to
g process this return,to the person that have authorized above.
and
Consent Nicole Davies,Finance Director
Sig ature of issuer's au orized representative Date ' Type or print name and title
Paid Print/Type preparer's name Preparer's signature Date Check ❑ if PTIN
Kristin Billingsley Cooper self-employed P02001942
Preparer Firm's EIN► 42-1323559
Use Only Firm's name ►Ahlers&Cooney,P.C.
Firm's address►100 Court Avenue,Suite 600,Des Moines,Iowa 50309 Phone no. 515-243-7611
Form 8038-G(Rev.10-2021)
Prepared By:Susan Dulek, First Ass't. City Attorney
Reviewed By:Geoff Fruin, City Manager
Fiscal Impact:none
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Resolution
Agreement
Item Number: 6.d.
May 16, 2023
Resolution approving an agreement with Summer of the Arts, Inc. to allow the sale,
consumption, and possession of beer and wine on City streets during Arts Fest and Jazz Fest.
Executive Summary:
The City Code allows private entities to sell and their customers to consume and possess
alcohol on public right-of-way under limited circumstances. Summer of the Arts, Inc. would
like to be able to sell beer and wine in a demarcated area on N. Clinton Street during Arts
Fest and Jazz Fest. The agreement is the same as the 2022 agreement.
Prepared by: Susan Dulek,Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240(319)356-5030
Resolution No. 23-144
Resolution approving an agreement with Summer of the Arts,
Inc. to allow the sale, consumption, and possession of beer and
wine on City streets during Arts Fest and Jazz Fest.
Whereas, section 4-5-3D of the City Code allows private entities to sell and their customers to
consume and possess alcohol on public right-of-way under limited circumstances; and
Whereas, Summer of the Arts, Inc. would like to be able to sell beer and wine in a demarcated
area on a City street during Arts Fest and Jazz Fest; and
Whereas, it is in the City of Iowa City's interest to execute the attached agreement.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
The City Manager is authorized to sign the attached agreement and any needed amendments.
Passed and approved this 16th day of May , 2023.
-"{(C`s)-
"Siti‘
May
Approved by
z,
Attest: G - `
Acting y Cler City Attorney' Office
(Sue Dulek- 05/05/2023)
•
Resolution No. 23-144
Page 2
It was moved by Taylor and seconded by Bergus
The Resolution be adopted, and upon roll call there were:
Ayes: Nays: Absent
X Alter
X Bergus
X Dunn
X
Harmsen
X Taylor
X Teague
X Thomas
2023 AGREEMENT
BETWEEN THE CITY OF IOWA CITY AND SUMMER OF THE ARTS, INC.
TO ALLOW THE TEMPORARY AND LIMITED SALE, CONSUMPTION, AND
POSSESSION OF BEER AND WINE ON CITY STREETS DURING IOWA ARTS
FESTIVAL AND IOWA CITY JAZZ FESTIVAL
This Agreement is made between Summer of the Arts, Inc. ("SOTA") and the City of
Iowa City, a municipal corporation ("City"), in Iowa City, Iowa.
Whereas, SOTA is an "authorized entity" as that term is defined in section 4-5-3D of
the City Code; and
Whereas, SOTA has applied for a license to sell beer and wine during the Iowa Arts
Festival ("Arts Fest") and the Iowa City Jazz Festival ("Jazz Fest") in downtown Iowa City;
and
Whereas, the parties wish to enter into an agreement to allow SOTA to sell beer
and wine and to allow persons to possess and consume beer and wines under limited
circumstances on downtown City streets.
THE PARTIES THEREFORE AGREE AS FOLLOWS:
1. Authorized Site.
a) Arts Fest. In consideration for SOTA's promises herein, the City agrees to
allow SOTA control over the area in the 10 block of N. Clinton Street as shown
on the diagram which is attached, marked Exhibit A, and incorporated herein
("Arts Fest authorized site") during the Term of this agreement.
b) Jazz Fest. In consideration for SOTA's promises herein, the City agrees to
allow SOTA control over the area in the 10 block of N. Clinton Street as shown
on the diagram which is attached, marked Exhibit B, and incorporated herein
("Jazz Fest authorized site") during the Term of this agreement.
2. Term. This agreement shall commence at 5:00 pm on June 2, 2023 and shall
expire at 4:00 pm on June 4, 2023 for Arts Fest and shall commence again at
5:00 pm on June 30, 2023 and shall expire again at 4:00 pm on July 2, 2023 for
Jazz Fest. More particularly, alcohol may only be sold and possessed on the
Arts Fest authorized site during the following hours: June 2: 5:00 pm-10:00 pm;
June 3: noon — 10:00 pm; June 4: noon-4:00 pm. More particularly, alcohol may
only be sold and possessed on the Jazz Fest authorized site during the following
hours: June 30: 5:00 pm — 10:00 pm; July 1: 11:30 am — 10:30 pm; July 2: noon
—4:00 pm.
3. Access. SOTA shall take all reasonable steps to ensure that every person on
the authorized site has a stamp or wrist band for entry or is an employee of, an
independent contractor of, or volunteer for SOTA and shall exclude any person
who is not.
4. License. This agreement is void if SOTA does not have a license to sell beer and
wine on the Arts Fest authorized site at any time during the period of June 2,
2023 through June 4, 2023 and on the Jazz Fest authorized site at any time
during the period of June 30, 2023 through July 2, 2023.
5. Sale of Beer and Alcohol Restrictions. SOTA shall only sell beer and wine to a
person who is over twenty-one (21) years of age. SOTA acknowledges that the
authorized sites are subject to all applicable alcohol restrictions in the City Code
including Section 4-5-8 of the City Code that restricts entry to those over twenty-
one (21) years of age after 10:00 p.m. with limited exception.
6. Advertisement. SOTA shall not, nor shall it allow anyone to, erect or place any
sign or other matter advertising any brand of alcoholic liquor, beer, or wine upon
the authorized site with the exception that signage may be placed on the interior
tent wall. Sponsorship signage unrelated to businesses selling alcohol, beer,
wine, or tobacco will be allowed.
7. Inspection. City staff, including the Iowa City Police Department, may periodically
inspect the authorized sites without any prior notice to determine compliance with
the terms of this agreement.
8. Debris and Trash. SOTA shall be solely responsible for collecting all debris and
trash from the authorized sites, and the City shall then remove the debris and
trash. If SOTA fails to do so and if City staff has to collect the debris and trash
from the authorized sites, SOTA may be responsible for the cost incurred by the
City, including staff time, and shall pay the costs in full within thirty (30) days of
receiving an invoice.
9. No Smoking. Smoking is prohibited in the authorized sites, and SOTA shall post
a no-smoking a sign at the front entrance to the authorized sites and two signs
inside the authorized sites. The signs shall comply with Iowa Code Section
142D.6, as amended. Additionally, the use of electronic cigarettes is prohibited.
Electronic cigarette means vapor product as defined in Section 453A.1 of the
Code of Iowa, as amended.
10.Temporary Toilet Facilities. SOTA shall provide at its sole cost the temporary
toilet facilities shown on Exhibits A and B, including two (2) that are handicap
accessible.
11.Occupancy and Exits. The maximum occupancy load of the authorized sites will
be provided by the City prior to the events. SOTA is solely responsible for
maintaining the occupancy limits. SOTA shall post a sign with the maximum
occupancy load inside the authorized site. SOTA shall maintain two (2) exits in
each authorized site and post "exit" signs at both exits, with the location and size
of the signs to be approved by the City Fire Department. Each exit must be a
minimum 36 inches in width.
12. Anchoring and Drilling. SOTA shall not drill any holes into the pavement or the
sidewalk and shall not anchor a tent tie down or pole to the pavement or the
sidewalk.
13.Fencing. The authorized site shall be enclosed by fencing as approved by the
City.
14.Fire Lane. SOTA shall maintain a fire lane of twenty feet (20') between the
2
outside fence and the vendors across the street, unless approved by the Fire
Code Official.
15.Insurance.
a) Premises Insurance. From June 2, 2023 through June 4, 2023 and from
June 30, 2023 through July 2, 2023, SOTA shall carry comprehensive
general liability insurance for bodily injury and property damage on the
Arts Fest and Jazz Fest in the amount of$1,000,000 (one million dollars)
for each occurrence and $2,000,000 (two million dollars) in the aggregate
and shall name the City as an additional insured. SOTA shall furnish a
copy of a certificate of insurance for same, satisfactory to the City at the
time of execution of this agreement. SOTA shall provide thirty (30) days
notice to the City before cancellation of said insurance, and said
cancellation shall automatically terminate this Agreement.
b) Dram Shop Insurance. From June 2, 2023 through June 4, 202 and from
June 30, 2023 through July 2, 2023, SOTA shall carry "dram shop"
insurance in compliance with Iowa Code section 123.92, as amended, in
the amount of$1,000,000 (one million dollars). SOTA shall provide thirty
(30) days notice to the City before cancellation of said insurance, and
said cancellation shall automatically terminate this Agreement.
c) Governmental Immunities Endorsement. SOTA shall obtain a
governmental immunities endorsement that meets the requirements set
forth on Exhibit C, which is attached and incorporated herein.
16. Indemnification. SOTA shall pay on behalf of the City all sums which the City
shall be obligated to pay by reason of any liability imposed upon the City for
damages of any kind resulting from the use of the authorized sight or sale,
consumption, or possession of beer and wine on the authorized site, whether
sustained by any person or person, caused by accident or otherwise and
shall defend at its own expense and on behalf of the City, its officers,
employees and agents any claim against the City, its officers, employees,
and agents arising out of the use of the authorized site or sale, consumption,
or possession of beer and wine on the Arts Fest and Jazz Fest authorized
sites.
17. Non-Discrimination. SOTA shall not discriminate against any person in
employment or public accommodation because of race, religion, color, creed,
gender identity, sex, national origin, sexual orientation, mental or physical
disability, marital status or age. "Employment" shall include but not be limited
to hiring, accepting, registering, classifying, promoting, or referring to
employment. "Public accommodation" shall include but not be limited to
providing goods, services, facilities, privileges and advantages to the public.
18. Termination. The City may terminate this agreement upon written notice for
violation of any provision of this agreement.
19. Assignment and Subletting. SOTA shall not assign or sublet this agreement
without prior written approval of the City.
20. Entire Agreement. This constitutes the whole agreement between the parties,
and may be modified in writing only, duly signed by the parties.
3
SUMMER OF THE A TS, INC.
By: Lisa J. Bar s
THE CITY OF IOWA
By: ff Fruin, City Manager
Approved b
City Attorney's Office
4
Prepared By:Darian L. Nagle-Gamm; Director of Transportation Services
Reviewed By:Geoff Fruin, City Manager
Fiscal Impact:University Heights agrees to pay the City of Iowa City
$45,366 for the continued provision of transit service in
FY24.
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Resolution.doc
28E Agreement
Item Number: 6.e.
May 16, 2023
Resolution authorizing the Mayor to sign and the City Clerk to attest the FY24 Agreement
between the City of Iowa City and the City of University Heights for the provision of transit
service within the corporate limits of University Heights.
Executive Summary:
The City of Iowa City currently provides transit service for the City of University Heights
utilizing an annual 28E Agreement. This resolution will continue that service through FY24 for
a contracted payment of $45,366.
Background / Analysis:
University Heights has contracted with the City of Iowa City for transit services since the
1970's. Currently, Iowa City Transit provides service to University Heights via the 10 - West
Iowa City and the 8 - Oakcrest routes, serving the Melrose Avenue corridor and Sunset
Street with 78 trips per day. The Metropolitan Planning Organization of Johnson County
develops the contract amount based on a formula that takes into account the Consumer
Price Index (CPI) as an escalator of the previous year's agreement. The University Heights
City Council approved this agreement at their May 9, 2023 me eting.
Per this agreement, University Heights agrees to pay $45,366 for contracted fixed route
transit services for FY24. This is an increase of 5.7% from FY23, based on the CPI.
Prepared By:Dan Striegel, Equipment Superintendent
Reviewed By:Ron Knoche, Public Works Director
Geoff Fruin, City Manager
Fiscal Impact:$363,860.00; funds are available account #’s 81710520
and 22710332
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Resolution
Item Number: 6.f.
May 16, 2023
Resolution authorizing the procurement of one (1) new motor grader.
Executive Summary:
At the May 16, 2023 City Council meeting, consideration will be given to a resolution
authorizing the procurement of one (1) new John Deere 672G motor grader for Streets
Operations. Motor grader purchase includes a right mounted snow wing and front mounted
ice removal attachment.
Sourcewell Cooperative contract 032119-JDC will be utilized for the procurement of the
motor grader from Martin Equipment in Cedar Rapids, IA. Purchase price of the motor grader
with attachments, contract discount and trade-in allowance is $363,860.00 as per Martin
Equipment/Sourcewell quote #7004510 dated April 26, 2023.
Background / Analysis:
The Streets Division has one motor grader in the fleet used for general grading and snow
removal operations and is scheduled for replacement in fiscal year 2024. The current motor
grader, unit #207, is a 2000 model year which the City purchased used in 2008. Our current
machine will be traded in toward the purchase at a reasonable trade allowance of
$37,500.00. Since the current machine was purchased used, the replacement reserves
available are below the true replacement cost. The Streets Division has additional funding
approved to supplement the purchase.
At the present time, if a unit is ordered in May 2023, estimated delivery will be
November/December 2023.
te
Prepared by: Dan Striegel, Equipment Superintendent, 1200 S. Riverside Drive, Iowa City, IA 52246(319)356-5197
Resolution No. 23-146
Resolution authorizing the procurement of one (1 ) new motor
grader.
Whereas, the motor grader in Streets Operations is scheduled for replacement in fiscal year 2024;
and
Whereas, Sourcewell cooperative contract 032119-JDC will be utilized for the procurement of the
motor grader; and
Whereas, the total purchase price of the motor grader is $363,860.00; and
Whereas, the amount exceeds the City Manager's spending authority of$150,000.00,thus requiring
City Council approval; and
Whereas, funds for this purchase are available in account#'s 81710520 and 22710332; and
Whereas, approval of this procurement is in the public interest.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The proposed procurement as described above is approved.
2. The City Manager is authorized to take the steps necessary to effectuate the purchase and
approve any change orders that may develop during the manufacturing process.
Passed and approved this 1 6 th day of May , 2023.
or
Approved by
Attest: 4(&("F/Acting Ci T City Attorney's i
(Jennifer Schwickerath-05/11/2023)
It was moved by Taylor and seconded by Bergus the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
x Dunn
x Harmsen
x Taylor
x Teague
x Thomas
Prepared By:Marri VanDyke, Civil Engineer
Reviewed By:Jason Havel, City Engineer
Ron Knoche, Public Works Director
Geoff Fruin, City Manager
Fiscal Impact:$424,697 available in the Hickory Hill Park account #R4365
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Resolution
Item Number: 6.g.
May 16, 2023
Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a
contract for construction of the Hickory Hill Park Shelter and Restrooms Project.
Executive Summary:
The Hickory Hill Park Shelter and Restrooms Project includes replacement of the shelter and
restroom located at the Conklin Lane entrance of Hickory Hill Park. The Project Manual was
approved at the April 18, 2023 Council Meeting.
Three (3) bids were submitted prior to the May 9, 2023 deadline:
Bidder Name City Bid
Rogers Construction Iowa City, IA $424,697.00
All American Concrete West Liberty, IA $469,437.90
McComas Lacina Construction Iowa City, IA $484,380.33
Engineer's Estimate $442,000.00
Public Works and Engineering recommend awarding the project to Rogers Construction of
Iowa City, Iowa.
Background / Analysis:
Currently, the Conklin Lane entrance has a combined shelter and restroom that needs
replaced due to its age and condition. The new structures will be separate from each other,
with the shelter staying in the same location and the restrooms moving closer to the parking
lot. These improvements align with what is called for in the 2016 Hickory Hill Park Master
Plan. The park is also prioritized in the 2017 Park Master Plan. City staff has worked closely
with Friends of Hickory Hill during project design.
Project Timeline:
Construction – June to December 2023
Prepared by:Marri VanDyke,Engineering Division,410 E.Washington St.,Iowa City,IA 52240(319)356-5044
Resolution No. 23-147
Resolution awarding contract and authorizing the Mayor to sign
and the City Clerk to attest a contract for construction of the
Hickory Hill Park Shelter and Restrooms Project.
Whereas, Rogers Construction, Inc. of Iowa City, Iowa has submitted the lowest responsive,
responsible bid of$424,696.25 for construction of the above-named project; and
Whereas, funds for this project are available in the Hickory Hill Park account#R4365.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The contract for the construction of the above-named project for base bid only is hereby
awarded to Rogers Construction, Inc., subject to the condition that awardee secure
adequate performance and payment bond, insurance certificates, and contract compliance
program statements.
2. The Mayor is hereby authorized to sign the contract for construction of the above-named
project and the Contractor's Bond, subject to the condition that awardee secure adequate
performance and payment bond, insurance certificates, and contract compliance program
statements.
3. The City Engineer and City Manager are authorized to execute change orders according
to the City's Purchasing Policy as they may become necessary in the construction of the
above-named project.
Passed and approved this 16th day of May , 2023
ii"CA-
M
Approved by
Attest:
Ac ing City Cljk/ ( I City Attorn 's Office
\ (Liz Craig -05/11/2023)
It was moved by Taylor and seconded by Bergus the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
x Dunn
x Harmsen
x Taylor
x Teague
x Thomas
Prepared By:Joe Welter, Sr. Engineer
Reviewed By:Jason Havel, City Engineer
Ron Knoche, Public Works Director
Geoff Fruin, City Manager
Fiscal Impact:$205,250.00 available in the Future Landfill Cell Project,
Account #L3338
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Resolution
Change Order #2
Item Number: 6.h.
May 16, 2023
Resolution authorizing the Mayor to sign Change Order 2 to the Contract between Delong
Construction, Inc. of Washington, Iowa and the City of Iowa City for extra work on the Landfill
Cell FY23 Construction Project.
Executive Summary:
This item is for the approval of Change Order 2 related to the construction of the Landfill Cell
FY23 Construction Project. Circumstances encountered during the construction of the
Landfill Cell FY23 Construction Project necessitated additional work beyond the original
scope of the project.
The extra work was determined by the preconstruction survey, which identified additional
earthwork required for completion of the project beyond what was specified in the project
documents. As a result of the actual quantities, staff has negotiated Change Order 2, which
modifies the project scope, timeline and budget necessitating City Council approval in
accordance with the Purchasing Policy. The total cost of the extra work is $205,250.00 and
will be funded by the Future Landfill Cell Project, Account Number L3338. The revised total
amount for the contract with Delong Construction, Inc. is $3,482,935.00.
Background / Analysis:
The quantity of earthwork required for placement of the cell liner was estimated for the
bidding documents based on surveys taken, as well as an estimation of materials that would
be removed by Landfill Operators for daily cover between the time of final design
(September/October 2022) and start of construction. The amount of materials removed for
daily cover was over estimated in the bid documents - resulting in smaller quantities for the
earthwork items. In the pre-bid meeting the pre-construction survey and the variability in the
earthwork quantities was discussed extensively. The notes for this meeting were included in
the project addenda. Bidders were informed that the quantity could and likely would change
based on the results of the survey. The pre-construction survey, referenced in several places
within the contract documents, was performed in March 2023 and resulted in a change of
49,750 cubic yards (CY) of excavation and 4,500 CY needed to reach the proposed grade.
Due to the additional work, this change order also revises the Substantial Completion Date to
October 23, 2023 and the Final Completion Date to November 22, 2023.
Prepared by:Joe Welter, Engineering Division,410 East Washington Street,Iowa City,Iowa 52240(319)356-5144 ; �
Resolution No. 23-148
Resolution authorizing the Mayor to sign Change Order 2 to the
Contract between Delong Construction, Inc. of Washington, Iowa
and the City of Iowa City for extra work on the Landfill Cell FY23
Construction Project.
Whereas, the City entered into a contract on December 29, 2022 with Delong Construction, Inc. of
Washington, Iowa for the construction of the Landfill Cell FY23 Construction Project; and
Whereas, circumstances encountered prior to construction and after awarding the contract
necessitated additional work beyond the original scope of the project as specified with the approved
project manual; and
Whereas, as a result of these changes in circumstances, staff has negotiated a change order that
modified the project scope, timeline, and budget necessitating City Council approval in accordance
with the Purchasing Policy; and
Whereas, it is in the public interest to approve said negotiated change order with Delong
Construction, Inc.; and
Whereas, the Finance Director has reviewed the change order; and
Whereas, funds for this project are available in the Future Landfill Cell Project, Account#L3338.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The attached change order hereto is in the public interest, and is approved as to form and
content.
2. The Mayor is hereby authorized and directed to execute the attached Change Order.
Passed and approved this 16th day of Ma 2023
1 ,.
Mayor
Approved by
Attest :
Act g City Clvrk City Attorney' Office
(Liz Craig —05/11/2023)
It was moved by Taylor and seconded by Bergus the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
X Dunn
x Harmsen
x Taylor
X Teague
x Thomas
Description The project includes an approximately 11 acre landfill cell and associated piping and liner tie-ins, landfill gas system improvements, pavement
repair and new pavement construction, sanitary sewer line realignment, and stormwater improvements.
Prime Contractor DELONG CONSTRUCTION, INC.
Change Order 2
Status Pending
Date Created 04/17/2023
Type Significant - Non-Participating
Summary Revised Grading Quantity and Schedule
Change Order Description The quantity of earthwork required for placement of the cell liner was estimated for the bidding documents based on surveys taken as well as an
estimation of materials that would be removed by Landfill Operators for daily cover between the time of final design (September/October 2022) and
start of construction.The amount of materials removed for daily cover was over estimated in the bid documents - resulting in smaller quantities for the
earthwork items.Attached to Addendum No. 1 are the Pre-Bid Meeting Notes.In this meeting the pre-construction survey and the variability in the
earthwork quantities was discussed extensively.Bidders were informed that the quantity could and likely would change based on the results of the
survey.The pre-construction survey is referenced in several places within the contract documents.According to Section 01 10 12, Measurement and
Payment, 1.8.B [for Item 6 - Bulk Excavation (to Subbase Elevations) - Clay Material], "Measurement for payment will be based on volume of material
excavated determined by a topographic survey performed prior to construction activities and a field survey after grading activities are complete. This
item will be paid based on the established bid quantity for work completed and accepted."According to Section 01 10 12, 1.9.B [for Item 7 - General
Earthen Fill (to Subbase Elevations with On-Site Materials)], "Measurement for payment will be based on cubic yard of material placed determined by a
topographic survey performed prior to construction activities and a field survey after grading work is complete. This item will be paid based on the
established bid quantity for work completed and accepted."This pre-construction survey is also referred to on Sheet 1 - Site Layout, Note 2; Sheet 2 -
Site Preparation and Demolition Plan, Note 2; Sheet 3 - Proposed Site Plan, Note 2; and in 31 22 00 -5, 3.3.C.The pre-construction survey was
City of Iowa City - Iowa
Change Order Details
Landfill Cell FY23 Construction L3338
Change Order Details:
Landfill Cell FY23 Construction L3338
05/08/2023
Page 1 of 3
performed in March 2023 and resulted in 137,500 cubic yards (CY) of excavation and 20,500 CY needed to reach the proposed grade.The following
items will have quantity changes as noted in the INCREASES/DECREASES Section below:Items 6 and 7.
The Contractor requested an additional 23 working days for the increase in the earthwork quantities.The Contractor had 40 working days
(55 calendar days) included within the preliminary schedule, provided after the pre-construction meeting, for bulk earthwork.Utilizing a
straight linear estimation of additional days needed for the increased quantity yields an additional 23 working days or 31 calendar days.
This would result in a new Substantial Completion Date of 6 November 2023.The City is concerned about winter weather related delays
or stoppage of construction activities in late October or November.Additionally, the increased quantity of work should have a resulting
increase in efficiency.The Substantial Completion Date will be extended by 21 calendar days to 27 October 2023.The Final
Completion Date is revised to 27 November 2023, which is the closest weekday to the City's standard 30-day period between
completion dates.
Awarded Project Amount $3,277,685.00
Authorized Project Amount $3,279,328.65
Change Order Amount $205,250.00
Revised Project Amount $3,484,578.65
Increases/Decreases
Line Number Item ID Unit Unit Price Current Change Revised
Quantity Amount Quantity Amount Quantity Amount
Section: 1 - Description
0060 31 22 00 - 1 CY $3.800 87,750.000 $333,450.00 49,750.000 $189,050.00 137,500.000 $522,500.00
Bulk Excavation (to Subbase Elevations) - Clay Material
Reason:Based on the pre-construction survey analysis described in the Change Order Description.
Change Order Details:
Landfill Cell FY23 Construction L3338
05/08/2023
Page 2 of 3
Line Number Item ID Unit Unit Price Current Change Revised
Quantity Amount Quantity Amount Quantity Amount
0070 31 22 00 - 2 CY $3.600 16,000.000 $57,600.00 4,500.000 $16,200.00 20,500.000 $73,800.00
General Earthen Fill (to Subbase Elevations with On-Site Materials)
Reason:Based on the pre-construction survey analysis described in the Change Order Description.
2 items Totals $391,050.00 $205,250.00 $596,300.00
Time Limit Changes
Type Original Deadline Current Deadline Pending Extension Pending Deadline
Completion Date 10/31/2023 10/31/2023 27.0 Days 11/27/2023
Final Completion Date
Completion Date 10/06/2023 10/06/2023 21.0 Days 10/27/2023
Substantial Completion Date
2 time limits
Signatures will be applied through Doc Express.
Change Order Details:
Landfill Cell FY23 Construction L3338
05/08/2023
Page 3 of 3
Doc Express® Document Signing Histor y
Contract: Landfill Cell FY23 Construction L3338 Document: CO 02
This document is in the process of being signed by all required signatories using the Doc Express® service. Following are the
signatures that have occurred so far.
Date Signed By
05/09/2023
Kyle Johnson
DeLong Construction
Electronic Signature
(Reviewed by Contractor)
05/11/2023
Joe Welter
City of Iowa City - Iowa
Electronic Signature
(Reviewed by Project Inspector)
05/11/2023
Joe Welter
City of Iowa City - Iowa
Electronic Signature
(Reviewed by Project Engineer)
(Reviewed by City Engineer)
(Reviewed by FHWA)
Prepared By:Ron Knoche, Public Works Director
Reviewed By:Jen Jordan, Resource Management Superintendent
Geoff Fruin, City Manager
Fiscal Impact:None
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Resolution
Item Number: 6.i.
May 16, 2023
Resolution adopting the fees for the rental of the Environmental Education Center at the East
Side Recycling Center.
Executive Summary:
The rental fees for the Environmental Education Center need to be revised to offset the actual
costs to provide the space.
Background / Analysis:
The fees for the rental of the Environmental Education Center at the East Side Recycling
Center have not been revised since 2018 and were only adopted through the permitting
process. This item will formally adopt the hourly rental fees which will be an increase from
the current fees.
The fees for rental of the Environmental Education Center will be increased as indicated
below:
2023 Current
Hourly Rate Non-Alcoholic Event $25.00 $12.50
Hourly Rate Alcohol $50.00 $40.00
Hourly Rate Non-profit Events $10.00 $5.00
Damage Deposit $100.00 $100.00
L
Prepared by:Ronald R.Knoche,Public Works Director,410 East Washington Street, Iowa City, Iowa 52240,(319)356-5138
Resolution No. 23-149
Resolution adopting the fees for the rental of the Environmental
Education Center at the East Side Recycling Center.
Whereas, the Environmental Education Center is available for rent by the public; and
Whereas, the current rental fees were established through the permitting process in 2018; and
Whereas, it is in the public interest to review and occasionally revise said fees.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The fees for rental of the Environmental Education Center are as follows:
Hourly Rate Non-Alcoholic Event $25.00
Hourly Rate Alcohol $50.00
Hourly Rate Non-profit Events $10.00
Damage Deposit $100.00
3. This Resolution shall be in effect on July 1, 2023.
Passed and approved this 16th day of May , 2023.
- _
M r ;
Approved by
Attest: ,
Act ng City C rk ( / City Attorne s Office-05/11/2023
It was moved by Taylor and seconded by Bergus the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
x Dunn
x Harmsen
x Taylor
x Teague
x Thomas
Prepared By:Danielle Sitzman, Development Services Coordinator
Reviewed By:Tim Hennes, Senior Building Inspector
Sue Dulek, First Assistant City Attorney
Fiscal Impact:None
Staff Recommendation:Approval
Commission Recommendations:The Board of Appeals recommended approval of the
proposed ordinance at its meeting May 1, 2023.
Attachments:StaffMemotoBOA4.25.23.pdf
BOA 5-1-23 minutes DRAFT_.docx
Item Number: 7.a.
May 16, 2023
Motion to set a public hearing for June 6, 2023 on an ordinance to amend Title 17 of the Iowa
City Code for the adoption of the 2021 Edition of the International Building Code (IBC), the
International Residential Code (IRC), and local amendments.
Executive Summary:
State law requires a public hearing on the adoption of a model code. Staff is recommending
adoption of the 2021 edition of International Building Code (IBC) and International Residential
Code (IRC) along with local amendments. A copy of the ordinance and the IBC and IRC are
on file in the City Clerk's office.
Background / Analysis:
A description of the notable changes are included in a memorandum from Tim Hennes,
Senior Building Inspector to the Board of Appeals dated April 25, 2023.
MEMORANDUM
Date: April 25, 2023
To: Iowa City Board of Appeals
From: Tim Hennes, Senior Building Inspector
Re: Notable Changes Contained in the 2021 Edition of Building Codes.
Following are significant changes made by local amendments and notable changes between
the 2018 codes and the 2021 codes.
Building Codes
The majority of amendments to the building codes are for clarification of a code
requirement, to reflect local practices that have evolved from previous building codes
and their amendments and to remain consistent with the Fire Code as amended.
Following are notable changes or proposed new amendments:
Section R302.5.1: Delete the requirement that requires house to garage doors to have
self-closing devices.
Comment: The amendment to delete the requirement maintains current requirements.
The amendment does not prohibit someone from installing such device.
Section R302.13: Delete the requirement to protect the underside of floor/ceiling
assemblies in unfinished basements.
Comment: This amendment eliminates the requirement to drywall the ceiling or sprinkle
an unfinished basement ceiling. The amendment to delete the requirement maintains
current requirements. The amendment does not prohibit someone from installing such
protection.
Section R312.2 (IRC) & 1015.8 (IBC): Delete the requirement to install guards on
operable windows that are located less than 24” above the floor and more than 72”
above the finish surface on the exterior of the building.
Comment: The amendment eliminates the requirement to install guards on all operable
windows that meet specified location criteria. The requirement is not consistent with
other guard location criteria requirements and could conflict with emergency and escape
window opening requirements. The amendment to delete the requirement maintains
current requirements. This amendment does not prohibit the installation of fall protection
devices on windows.
Section R313: Delete the requirement to install a fire sprinkling system in one- and two-
family dwelling and townhouses.
Comment: This amendment eliminates the requirement for structures regulated by the
IRC have an automatic fire suppression system installed. The amendment to delete the
requirement maintains current requirements. The amendment does not prohibit the
installation of a automatic fire suppression system.
Section R314.4: Delete the requirement to interconnect smoke alarms when a home is
being altered, repaired or an addition is added.
Comment: This amendment eliminates the requirement for smoke alarms to be
interconnected when a home is being altered, repaired or an addition is added.
Previous codes have not required this extensive of an update and eliminating the
requirement does not forgive the requirement to install battery operated smoke alarms
when alterations, repairs or additions. The amendment to delete the requirement
maintains current requirements. The amendment does not prohibit someone from
installing such protection.
Section R320.3: Add section to include eight provisions to implement universal design
features that provide accessibility, usability and visit-ability for all.
Comment: The amendment applies only to new dwelling units and is not required for
existing structures for repairs, alterations, change of occupancy or additions unless the
square footage of the addition is more than 25% of the existing structure, then, the
addition must comply. The amendment maintains current requirements.
The minimum usability requirements are as follows:
1. Step-less Entrance: At least one entrance must be designed to provide a
step-less entry.
2. Interior doors: At least one bedroom and one bathroom, if either are provided,
and all other passage doorway header widths, on the level served by the
designed step-less entrance, must be framed to accommodate a minimum 38”
clear rough opening. The framing for the doorway width opening may be reduced
to accommodate any door size. 3. Sanitation facilities: There must be at least one bathroom containing a water closet (toilet) and lavatory (sink) on the level of the dwelling to be accessed by the designed step-less entrance. The room shall have a minimum thirty inches (30") by forty-eight inches (48") clear floor space at the water closet and lavatory.
4. Wall Reinforcement: A bathroom must be provided with wood blocking
installed within wall framing to support grab bars as needed.
5. Decks: All exterior decks surfaces adjacent to the level served by the
designed step-less entrance must be built within four inches (4") of the dwelling
units finish floor level. 6. Switch and outlet requirements: All wall switches, controlling light fixtures, fans, all temperature control devices and all receptacles shall be located in an area between fifteen (15) and forty-eight (48) inches above finished floor. 7. Electrical panel requirements: : Electrical panels on the level of the dwelling to be accessed by the designed step-less entrance shall be located so that the individual circuit breakers are located between 15" and 54 " above the floor.
8. Garages: Must be wired for power operated overhead doors.
Section R327: Delete Section R327 Swimming Pools, Spas and Hot Tubs.
Comment: This section was moved to the body of the code from the appendix in the
previous code cycle. Deleting it results in no change of enforcement for pools, spas and
hot tubs. They are still regulated by the electrical and zoning code.
Adoption of Appendices (IRC and IBC)
Appendix F (IRC) – Radon Control Methods:
Amend the code provision to remove the requirement for testing for radon prior to
moving into a house. The amendment does not prohibit testing prior to occupancy.
Comment: We are in a region known to have high levels of radon gas and this code
provision requires a passive radon system in new homes and additions to existing
homes. A pipe installed from below the basement floor up through the roof will serve as
a passive radon system and has the capability of becoming an active system with the
addition of a fan.
Appendix J (IRC): Existing Buildings and Structures:
Adopt Appendix J
Comment: The purpose of these provisions is to encourage the continued use or reuse
of legally existing buildings and structures. These provisions are intended to permit work
in existing buildings that is consistent with the purpose of this code.
Appendix K (IBC) – Administrative Provisions:
Adopt Appendix K
Comment: These provisions are intended to be a tool for jurisdictions to implement and
enforce the National Electrical Code while using administrative provisions that are
consistent with the International Code Council family of codes. This will allow us to
reference the State Electrical Code without needing a separate ordinance to lay out our
administrative provisions.
Existing Building Code (multifamily and commercial)
Adopted by reference: Section 102.6 in the International Building Code directs us to the
International Existing Building Code (IEBC) for existing structures.
Comment: The IEBC allows and encourages the use and reuse of existing buildings
while requiring reasonable upgrades and improvements for alterations, repairs,
additions, occupancy change, historic and relocated buildings.
Energy Code
Adopt by reference the State Energy Code:
Comment: The State of Iowa adopted the 2012 International Energy Conservation Code
(IECC). Referencing the state energy code provides consistency for designers and
builders.
Accessibility Code
Adopted by reference the State Accessibility Code:
Comment: The State of Iowa Accessibility Code is based on the 2010 ADA Standards for
Accessible Design and requirements of the federal Fair Housing Act. Adopting the state
accessibility codes by reference provides consistency for designers and builders.
Plumbing and Mechanical Codes
Adopt by reference the State Plumbing and Mechanical Codes:
Comment: Iowa Code Section 105.4 requires local jurisdictions to adopt the State Plumbing
and Mechanical Code. Adopting the state plumbing and mechanical codes by reference
provides consistency for designers and builders.
Electrical Code
Adopt by reference the State Electrical Code:
Comment: Iowa Electrical Code applies to all electrical installations across the state and cities
cannot adopt or enforce an electrical code less restrictive than the State Electric Code.
Adopting the State Electrical Code by reference provides consistency for designers and
builders.
cc: Tracy Hightshoe, Director, Neighborhood and Development Services
Danielle Sitzman, Coordinator, Development Services
1
DRAFT
MINUTES
IOWACITYBOARDOFAPPEALS
May 1, 2023 –4 PM
HELLING CONFERENCE ROOM,CITYHALL
410 E. WASHINGTON STREET
IOWA CITY, IA52240
MEMBERSPRESENT:AndreaFrench, Andrew Martin,Thomas McInerney, GT Karr
MEMBERS ABSENT:Jim Walker
STAFF PRESENT:Tim Hennes (Sr. Building Inspector),Sarah Horning (Development
Services Assistant), Troy Roth (Fire Marshal), Sue Dulek (Assistant City
attorney)
RECOMMENDATIONS TO COUNCIL:
Adoption of 2021 International Building and Fire Codes
CALL TO ORDER:
Chair Andrew Martin called the meeting to order at 4 PM
CONSIDERATION OF MINUTES: April 5, 2023 Board of Appeals minutes
MOTION:McInerney moved to approve the minutes from the April 5, 2023 Board of Appeals
meeting. Seconded by French.
VOTE:Motion passed 4-0.
Discussion and possible recommendation to Council regarding the adoption of the
2021 International Building and Fire Codes.
DISCUSSION:Martin commented that the new code seems to have been amended to keep
it the way it is now. Tim Hennes agreed and stated that the main difference between the 2018
and 2021 codes is that the new code allows for mass timber construction , which allows for
up to 18 stories be constructed of wood. Hennes also noted that the city’s delay in adopting
the new code was due to the discussion of the state legislatures adopting a state building
code, which would have taken building codes out of the hands of the city all together and
since that did not happen, the staff chose to move forward with the adoption of the 2021
codes.
Hennes stated that the city has worked with neighboring jurisdictions (Johnson County, North
Liberty, Coralville & Tiffin) to be consistent with code enforcement and Roth shared that the four
communities are near identical when it comes to the fire code.
MOTION:McInerney moved to recommend to Council to adopt the 2021 International Building
and Fire Codes as amended.Seconded by Karr.
VOTE:Motion passed 4-0.
ADJOURNMENT:
MOTION:McInerney moved to adjourn meeting, French seconded.
VOTE:Motion passed 4-0.
Meeting adjourned at 4:10 PM.
2
Chairperson, Board of Appeals Date
Prepared By:Danielle Sitzman, Development Services
Reviewed By:Troy Roth, Fire Marshall
Sue Dulek, First Assistant City Attorney
Fiscal Impact:None
Staff Recommendation:Approval
Commission Recommendations:The Board of Appeals recommended approval of the
proposed ordinance at its meeting May 1, 2023.
Attachments:FireMemo.pdf
BOA 5-1-23 minutes DRAFT_.docx
Item Number: 7.b.
May 16, 2023
Motion to set a public hearing for June 6, 2023 on an ordinance amending Title 7, Fire
Prevention and Protection, by adopting the 2021 Edition of the International Fire Code.
Executive Summary:
State law requires a public hearing on the adoption of a model code. Staff is recommending
adoption of the 2021 Edition of the International Fire Code (IFC) along with local
amendments. A copy of the ordinance and the IFC are on file in the City Clerk's office.
Background / Analysis:
A description of the notable changes are included in a memorandum from Troy Roth, Fire
Marshall to the Board of Appeals dated April 25, 2023.
Memorandum
Date: April 25, 2023
To: Board of Appeals
From: Troy Roth, Fire Marshal
Re: Notable changes to the 2021 International Fire Code local amendments
The fire department presents for your review, notable changes to the 2018 International Fire
Code (IFC).
308.3 Local Amendment. Open Flames. Add number 4: Outdoor assembly spaces
are allowed to be provided with natural gas fueled fire pit appliances complying
with the applicable adopted codes and manufacturer’s listing.
321 Addition. Artificial Combustible Vegetation On Roofs And Near Buildings.
The trend of rooftop assembly areas has resulted in artificial vegetation
decorations posing increased fire threat.
405 Modification. Emergency Evacuation Drills. This change increases the
frequency and participation of evacuation drill. E occupancies are increased to
monthly. Iowa City amends this to follow state code requiring four drills per
school year, two in the fall semester and two in the spring semester.
503.2.9 Local amendment. Add a new section to read as follows: Thickness. Fire
apparatus access roads shall be constructed of Portland cement concrete
conforming to the specifications of the Iowa Department of Transportation C-3 or
M-3 mixes. The concrete access road shall be a minimum of 7 inches thick over
compacted soil.
506.1 Local amendment. Add a sentence to the end of the section to read as follows: An
approved key box shall be installed in an approved location on all new
construction.
Exception: Group R-3
508 Modification. Fire Command Center. Command center requirements were
added to large factories and warehouses where they had generally only been
required in high-rises.
Iowa City Fire Department
_____________________________________________________________________
410 E. Washington Street – Iowa City, IA 52240-1821
Phone: 319.356.5260 www.icgov.org
510 Modification. Emergency Responder Communication Coverage – Signals.
Clarified testing criteria for radio signal strength as well as requiring more area
coverage.
610 Addition. Clothes Dryer Exhaust Systems. This new section regulates the
installation and cleaning of dryer vents due to nation fire cause statistics.
808.5 Addition. Play Structures. Play structures installed at the time of construction
are regulated by the International Building Code (IBC). This new section directs
designers and installers of play structures that are added to existing buildings to
follow the IBC requirements.
901 Modification. Life Safety Systems. Essentially a verbiage change from fire
protection systems to life safety systems. An example is CO detection.
903.2.10 Modification. Group S-2 Parking Garages. Open parking ramps exceeding
48,000 square feet now require sprinkler systems.
903.2.10.02 Addition. Mechanical-Access Parking Garages. New section regulating
mechanical parking structures.
903.3.1.2 Modification. NFPA 13R Sprinkler Systems. The maximum allowable height
to allow 13R to be used rather than 13 is lowered to 30 feet above lowest fire
department access. This will increase the likelihood of sprinklered attics.
903.5.2 Local amendment. Add a new section to read as follows: Forward Flow Testing.
Automatic sprinkler systems shall be provided with an external outlet to perform forward
flow testing as required by NFPA 25. Outlet shall be supervised, signed as testing, and
have male threads.
903.7 Local amendment. Section 903.7 Add a new section to read as follows: Zones.
Automatic sprinkler system zones shall not exceed the area permitted by NFPA 13 or
NFPA 13R and shall provide a sprinkler control valve and waterflow device for each
normally occupied floor. The location of sprinkler control valves must be approved by
the fire code official.
905.4 Local amendment. Requirement #1 Delete the section and replace with: In every
required interior exit stairway, a hose connection shall be provided for each story above
and below grade plane. Hose connections shall be located at intermediate landing
between stories, unless otherwise approved by the fire code official.
907.4 Modification. Low-Frequency Alarms in Sleeping Rooms. Alarm notification
in sleeping room will now be required to be 520 Hz. Studies have shown the low
frequency sound is six times more effective at waking at-rink populations than the
current 3KHz tone.
912.4.1 Local amendment. Delete the section and replace with: Locking fire department
connection caps. Locking fire department connection caps approved by the fire
department are required for all new construction that have a water-based fire
protection system and existing structures that have a water-based fire protection
system shall be required immediately after conducting the five-year obstruction
and maintenance testing, or if one or more of the fire department caps are missing.
1009.2.1 Modification. Elevator Serving Occupied Roof. An occupied roof is now
counted as a story when determining if an elevator is required in a building.
1010.1.1 Modification. Size of Doors. The maximum width of doors (48”) is eliminated.
Section 1010.1.3 still limits the force need to open the to 5lbs, but the door can
now be 12 feet wide for example.
1010.2.8 Modification. Locking arrangements in Educational Occupancies. This
section allows for tighter lockdown options to protect occupants from intruders.
1204 Addition. Portable Generators. Previously generally unregulated, portable
generators are now regulated under this section.
3303.3 Addition. Daily Fire Safety Inspection. Because of the increase of fires in
buildings under construction, the building owner is now responsible to ensure that
a daily fire safety inspection is conducted.
1
DRAFT
MINUTES
IOWACITYBOARDOFAPPEALS
May 1, 2023 –4 PM
HELLING CONFERENCE ROOM,CITYHALL
410 E. WASHINGTON STREET
IOWA CITY, IA52240
MEMBERSPRESENT:AndreaFrench, Andrew Martin,Thomas McInerney, GT Karr
MEMBERS ABSENT:Jim Walker
STAFF PRESENT:Tim Hennes (Sr. Building Inspector),Sarah Horning (Development
Services Assistant), Troy Roth (Fire Marshal), Sue Dulek (Assistant City
attorney)
RECOMMENDATIONS TO COUNCIL:
Adoption of 2021 International Building and Fire Codes
CALL TO ORDER:
Chair Andrew Martin called the meeting to order at 4 PM
CONSIDERATION OF MINUTES: April 5, 2023 Board of Appeals minutes
MOTION:McInerney moved to approve the minutes from the April 5, 2023 Board of Appeals
meeting. Seconded by French.
VOTE:Motion passed 4-0.
Discussion and possible recommendation to Council regarding the adoption of the
2021 International Building and Fire Codes.
DISCUSSION:Martin commented that the new code seems to have been amended to keep
it the way it is now. Tim Hennes agreed and stated that the main difference between the 2018
and 2021 codes is that the new code allows for mass timber construction , which allows for
up to 18 stories be constructed of wood. Hennes also noted that the city’s delay in adopting
the new code was due to the discussion of the state legislatures adopting a state building
code, which would have taken building codes out of the hands of the city all together and
since that did not happen, the staff chose to move forward with the adoption of the 2021
codes.
Hennes stated that the city has worked with neighboring jurisdictions (Johnson County, North
Liberty, Coralville & Tiffin) to be consistent with code enforcement and Roth shared that the four
communities are near identical when it comes to the fire code.
MOTION:McInerney moved to recommend to Council to adopt the 2021 International Building
and Fire Codes as amended.Seconded by Karr.
VOTE:Motion passed 4-0.
ADJOURNMENT:
MOTION:McInerney moved to adjourn meeting, French seconded.
VOTE:Motion passed 4-0.
Meeting adjourned at 4:10 PM.
2
Chairperson, Board of Appeals Date
Prepared By:Marri Van Dyke, Civil Engineer
Reviewed By:Jason Havel, City Engineer
Ron Knoche, Public Works Director
Geoff Fruin, City Manager
Fiscal Impact:$600,000 available in the Annual Pavement Rehabilitation -
Account #S3824
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Resolution
Item Number: 7.c.
May 16, 2023
Resolution setting a public hearing on June 6, 2023 on project manual and estimate of cost for
the construction of the Asphalt Resurfacing 2023 Project, directing City Clerk to publish notice
of said hearing, and directing the City Engineer to place said project manual on file for public
inspection.
Executive Summary:
This item begins the bidding process for the Asphalt Resurfacing 2023 Project, which is a
recurring maintenance project that concentrates on asphalt resurfacing and chip sealing
streets throughout Iowa City. In addition to resurfacing, this project includes storm intake
repairs, repair of curb and gutter as needed, and replacement of curb ramps to meet current
ADA standards.
Background / Analysis:
The Asphalt Resurfacing 2023 Project includes work at the following locations:
Asphalt Overlay
• Court Street – Elmira Street to Berkeley Lane
• Gilbert Street – at the railroad crossing between Southgate Avenue and Cherry Avenue
Chip Seal
• Taft Avenue – Herbert Hoover Highway to American Legion Road
Project Timeline:
Hold Public Hearing – June 6, 2023
Bid Letting – June 27, 2023
Award Date – July 11, 2023
Construction – July to November 2023
•
Prepared by:Marri VanDyke,Engineering Division,410 E.Washington St., Iowa City,IA 52240,(319)356-5044
Resolution No. 23-150
Resolution setting a public hearing on June 6, 2023 on project
manual and estimate of cost for the construction of the Asphalt
Resurfacing 2023 Project, directing City Clerk to publish notice of
said hearing, and directing the City Engineer to place said project
manual on file for public inspection.
Whereas, funds for this project are available in the Annual Pavement Rehabilitation account,
account#S3824.
Now, therefore, be it resolved by the Council of the City of Iowa City, Iowa, that:
1. A public hearing on the project manual and estimate of cost for the construction of the above-
mentioned project is to be held on the 6th day of June, 2023, at 6:00 p.m. in the Emma J.
Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of
the City Council thereafter as posted by the City Clerk.
2. The City Clerk is hereby authorized and directed to publish notice of the public hearing for
the above-named project in a newspaper published at least once weekly and having a
general circulation in the City, not less than four (4) nor more than twenty (20) days before
said hearing.
3. A copy of the project manual and estimate of cost for the construction of the above-named
project is hereby ordered placed on file by the City Engineer in the office of the City Clerk
for public inspection.
Passed and approved this 16th day of May , 2023
Ma
Y
Approved by
Attest:
Ac ing City Clerk City Attorn s Office
(Liz Craig -05/09/2023)
It was moved by Taylor and seconded by Bergus the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
x Dunn
x Harmsen
x Taylor
x Teague
x Thomas
Prepared By:Ethan Yoder, Civil Engineer
Reviewed By:Jason Havel, City Engineer
Ron Knoche, Public Works Director
Geoff Fruin, City Manager
Fiscal Impact:$155,000.00 available in the Curb Ramp – ADA account
#S3822
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Resolution
Item Number: 7.d.
May 16, 2023
Resolution setting a public hearing on June 6, 2023 on project manual and estimate of cost for
the construction of the CDBG ADA Curb Ramp 2023 Project, directing City Clerk to publish
notice of said hearing, and directing the City Engineer to place said project manual on file for
public inspection.
Executive Summary:
This item begins the bidding process for the CDBG ADA Curb Ramp 2023 Project. This
project generally includes removal and replacement of curb ramps and sidewalks at various
locations within Iowa City.
Background / Analysis:
The curb ramp locations included in the CDBG ADA Curb Ramp 2023 Project are Broadway
Street at Cross Park Avenue, Apple Court, and Sandusky Drive, Hollywood Blvd at
Hollywood Court and Delwood Drive, Tracy Lane and Davis Street, Downey Drive and Ridge
Street, and Sandusky Drive at Davis Street and Bancroft Drive.
Project Timeline:
Bid Letting – June 28, 2023
Award Date – July 11, 2023
Construction – July through September 2023
Prepared by:Ethan Yoder Engineering Division,410 E.Washington St., Iowa City,IA 52240,(319)356-5145
Resolution No. 23-151
Resolution setting a public hearing on June 6, 2023 on project
manual and estimate of cost for the construction of the CDBG
ADA Curb Ramp 2023 Project, directing City Clerk to publish
notice of said hearing, and directing the City Engineer to place
said project manual on file for public inspection.
Whereas, funds for this project are available in the Curb Ramps—ADA account#S3822.
Now, therefore, be it resolved by the Council of the City of Iowa City, Iowa, that:
1. A public hearing on the project manual and estimate of cost for the construction of the
above-mentioned project is to be held on the 6th day of June, 2023, at 6:00 p.m. in the
Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next
meeting of the City Council thereafter as posted by the City Clerk.
2. The City Clerk is hereby authorized and directed to publish notice of the public hearing for
the above-named project in a newspaper published at least once weekly and having a
general circulation in the City, not less than four (4) nor more than twenty(20) days before
said hearing.
3. A copy of the project manual and estimate of cost for the construction of the above-named
project is hereby ordered placed on file by the City Engineer in the office of the City Clerk
for public inspection.
Passed and approved this 16th day of May , 2023
Ma 4,
Approved by
Attest:
A ting City C,I&k City Attar y's Office
(Liz Craig—05/09/2023)
It was moved by Taylor and seconded by Bergus the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
x Dunn
x Harmsen
x Taylor
x Teague
x Thomas
Prepared By:Darian L. Nagle-Gamm; Transportation Services Director
Reviewed By:Geoff Fruin, City Manager
Fiscal Impact:Permits application for State and Federal transit operating
and capital funds which may require matching funds.
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Resolution
Item Number: 11.a.
May 16, 2023
Resolution authorizing the filing of an application with the Iowa Department of Transportation
for FY2024 State Transit Assistance and Federal Transit Administration funding.
Executive Summary:
The consolidated transit funding application is an annual application filed with Iowa
Department of Transportation (DOT) listing capital and operating expenses for which the City
seeks funding from the Iowa DOT and the Federal Transit Administration (FTA). The projects
contained in the application have been programmed by Iowa City Transit for FTA Section
5307, 5310 and/or 5339 funds in FY2024. The projects will be included in the FY2024 Iowa
DOT consolidated transit funding application that the Metropolitan Planning Organization of
Johnson County (MPOJC) is completing and in the FY2024-2027 MPOJC Transportation
Improvement Program (TIP). Iowa City Transit may not seek funding for all of the projects;
however, each project needs to be listed in order to be eligible for funding. The total amount
of funds being requested in the funding application is approximately $20.01 million dollars.
Background / Analysis:
Due to our application for and potential receipt of federal grant funds, we are required to hold
a public hearing so that the public has an opportunity to comment on the funding request.
The specific allocations for the funds being applied for are detailed below:
State Transit Assistance Program: approximately $692,290 -- These are formula
funds for operations awarded to the Metropolitan Planning Organization (MPO) and
then distributed between Iowa City Transit, Coralville Transit and the University of Iowa
-- Cambus.
Federal operating assistance for transit (5307): approximately $1,900,000 -- These
are funds awarded from FTA to provide operational assistance to the transit agency.
From federal funds for transit in non-urbanized areas and/or for transit serving
primarily elderly persons and persons with disabilities (5310): $177,523 -- These
funds are awarded to Iowa City and committed to para-transit services that are
contracted through a 28E Agreement with Johnson County.
State-wide federal capital assistance for transit (5339): $20,034,476 -- These funds
include all of the capital projects that Iowa City Transit wishes to see funded. This sum
includes replacement and relocation of the transit facility, electric bus replacements and
bus shelters. A local match of 15%-20% is commonly required for the award of these
funds.
City Council Supplemental Meeting Packet
May 15, 2023
Information submitted between distribution of packet on Thursday and 4:00pm on Monday.
Late Handout(s):
Regular Formal Agenda
Item 11.a Transit Funding Application - See revised Council Action Report and
resolution.
May 15, 2023 City of Iowa City
11 .E
Prepared by: Hannah Neel,Asst.Transp. Planner,410 E. Washington St., Iowa City, IA 52240 319-356-5235
RESOLUTION NO.
i
Resolution authorizing the filing of an applicati9n with the Iowa
epartment of Transportation for FY2024 State Transit Assistance and
Fe•eral Transit Administration Funding
WHEREAS, no ' e of public hearing was published as required . law, and the hearing thereon
held; and
WHEREAS, the City of Iowa City, Iowa has undertaken to provide its residents with a public
transportation system; a,d
WHEREAS, the Iowa Department of Transportation offers financial assistance to local
governmental units for their pu lic transportation sysst-ms.
NOW, THEREFORE, BE IT RES LVED BY THE/CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
We, hereby, authorize the City Manage o behalf of the City of Iowa City, to apply for financial
assistance as noted below and to enter nto related contract(s) with the Iowa Department of
Transportation.
From the State Transit Assist ce Program:
4.05491754% (app oximately $692, •0) of Formula Funds
From federal operating ssistance for transit:
/ $1,900,000;
From federal funis for transit in non-urbanized area- and/or for transit serving primarily
elderly persons nd person with disabilities:
$177,523;
From stat -wide federal capital assistance for transit:
/ $20,034,476;
We unders nd acceptance of federal transit assistance involves an agree ent to comply with
certain la or protection provisions.
We ce Ify that the City of Iowa City has sufficient non-federal funds to provide requui�red local match
for caOtal projects and at time of delivery will have the funds to operate and maintal vehicles and
equipment purchased under this project.
1
We request the State Transit Assistance formula funding be advanced monthly as allow d by law,
t improve transit system cash flow.
Passed and approved this 16st day of May, 2023.
Resolution No.
Page 2
MAYOR
Approved by
ATTEST:
Acting CITY CLERK City Attorne s ;lice
(Jennifer Schw' kerath—05/11/2023)
It was moved by and seconded by the Resolution be
adopted, and upon roll gall there were:
AYES: NAYS: AB ENT:
Alter
Bergus
Dunn
'�,, Harmsen
Taylor
`� Teague
Thomas
A,
/ \
Late Handouts Distributed
51Is /a3
(Date)
Prepared by: Hannah Neel,Asst.Transp. Planner,410 E.Washington St., Iowa City, IA 52240 319-356-5235
RESOLUTION NO.
Resolution authorizing the filing of an application with the Iowa Department of
Transportation for FY2024 State Transit Assistance and Federal Transit
Administration Funding
WHEREAS, the City of Iowa City, Iowa has undertaken to provide its residents with a public
transportation system; and
WHEREAS, the Iowa Department of Transportation offers financial assistance to local
governmental units for their public transportation systems.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
We, hereby, authorize the City Manager, on behalf of the City of Iowa City, to apply for financial
assistance as noted below and to enter into related contract(s) with the Iowa Department of
Transportation.
From the State Transit Assistance Program:
4.05491754% (approximately$692,290)of Formula Funds
From federal operating assistance for transit:
$2,950,000;
From federal funds for transit in non-urbanized areas and/or for transit serving primarily
elderly persons and person with disabilities:
$177,523;
From state-wide federal capital assistance for transit:
$30,448,597;
We understand acceptance of federal transit assistance involves an agreement to comply with
certain labor protection provisions.
We certify that the City of Iowa City has sufficient non-federal funds to provide required local
match for capital projects and at time of delivery will have the funds to operate and maintain
vehicles and equipment purchased under this project.
We request the State Transit Assistance formula funding be advanced monthly as allowed by law,
to improve transit system cash flow.
Passed and approved this 16st day of May, 2023.
Resolution No.
Page 2
MAYOR
Approved by
ATTEST:
CITY CLERK City Attorney's Office
It was moved by and seconded by the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Alter
Bergus
Dunn
Harmsen
Taylor
Teague
Thomas
I I,a'
Prepared by: Hannah Neel,Asst.Transp. Planner,410 E.Washington St., Iowa City, IA 52240 319-356-5235
RESOLUTION NO. 23-152
Resolution authorizing the filing of an application with the Iowa Department of
Transportation for FY2024 State Transit Assistance and Federal Transit Administration
Funding
WHEREAS, the City of Iowa City, Iowa has undertaken to provide its residents with a public
transportation system; and
WHEREAS, the Iowa Department of Transportation offers financial assistance to local
governmental units for their public transportation systems.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
We, hereby, authorize the City Manager, on behalf of the City of Iowa City, to apply for financial
assistance as noted below and to enter into related contract(s) with the Iowa Department of
Transportation.
From the State Transit Assistance Program:
4.05491754% (approximately$692,290) of Formula Funds
From federal operating assistance for transit:
$2,950,000;
From federal funds for transit in non-urbanized areas and/or for transit serving primarily
elderly persons and person with disabilities:
$177,523;
From state-wide federal capital assistance for transit:
$30,448,597;
We understand acceptance of federal transit assistance involves an agreement to comply with
certain labor protection provisions.
We certify that the City of Iowa City has sufficient non-federal funds to provide required local
match for capital projects and at time of delivery will have the funds to operate and maintain
vehicles and equipment purchased under this project.
We request the State Transit Assistance formula funding be advanced monthly as allowed by law,
to improve transit system cash flow.
Passed and approved this 16st day of May, 2023.
Resolution No. 23-152
Page 2
416,
/� ) _ Approv by
ATTEST:
--6)
CI Y CLE y Attorney's Office
It was moved by Harmsen and seconded by Bergus the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Alter
x Bergus
x Dunn
x Harmsen
x Taylor
x Teague
x Thomas
Prepared By:Ron Knoche, Public Works Director
Reviewed By:Jen Jordan, Resource Management Superintendent
Geoff Fruin, City Manager
Fiscal Impact:None
Staff Recommendation:Approval
Commission Recommendations:N/A
Attachments:Resolution
Item Number: 11.c.
May 16, 2023
Resolution adopting the fees for solid waste services for items left on the public right of way
and rescinding Resolution No. 10-138.
Executive Summary:
The fees for the Resource Management Division’s 24 hour tag procedure needs to be revised
to offset the actual costs to provide the service.
Background / Analysis:
The 24 hour tag procedure is utilized when items are placed on the City right of way and a
bulky item pickup has not been scheduled. When items are encountered, they are tagged. If
items are not removed within 24 hours, the City picks up the items and charges the adopted
fees. The fees were established to offset the actual administrative and inspection costs.
The current fees for the 24 hour tag procedure were adopted by City Council on April 27,
2010. The revised fees will increase the minimum charge for the service from $70.50 to
$76.50. The customer is also charged the per item fee. This fee is $20.00.
•
Prepared by:Ronald R.Knoche,Public Works Director,410 East Washington Street,Iowa City,Iowa 52240, (319)356-5138
Resolution No. 23-153
Resolution adopting the fees for solid waste services for items left
on the public right of way and rescinding Resolution No. 10-138.
Whereas, section 16-1A-5B of the City Code requires the owner or person in control of the property
to remove debris promptly from the right of way; and
Whereas, section 6-1A-5B further provides the City may remove the debris after reasonable notice
to remove the debris and assess the cost against the property; and
Whereas, the City procedure to implement section 16-1A-5B is referred to as the "24-hour tag
procedure"; and
Whereas, the cost to remove the debris should include the fees to offset the actual administrative
and inspection costs of such activities; and
Whereas, Resolution No. 10-138 established the fees for the 24-hour tag procedure.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The fees for removal of items in the public right of way under section 16-1 A-5B of the City
Code (a/k/a 24-hour tag procedure) are as follows:
Labor fee $22.00 plus $22.00 per hour after the first hour
Equipment fee $27.50 plus $27.50 per hour after the first hour
Administrative fee $27.00
Re-Inspection (call back) fee $27.00
2. Resolution No.10-138 is rescinded.
3. This Resolution shall be in effect on July 1, 2023.
Passed and approved this 16th day of May , 2023.
. Ma
Approved by
Attest: QC1 ' .
Ag ing City clerk City Attorney' Office-05/10/2023
It was moved by Bergus and seconded by Alter the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
X Alter
x Bergus
x Dunn
X Harmsen
X Taylor
x Teague
x Thomas