HomeMy WebLinkAbout2024-05-21 Resolution Item Number: 6.a.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
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.
Prepared By: Nicole Davies, Finance Director
Reviewed By: Geoff Fruin, City Manager
Fiscal Impact: Adopted as part of the FY2024 Revised Budget and 2024-
2028 Capital Improvement Program
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Resolution
Agreement Relating to Paying Agency, Registrar and Transfer Agency
Executive Summary:
On the May 21 City Council agenda, there are two separate resolutions for the City Council to
consider in order to complete the sale of the 2024 General Obligation Bonds. The first
resolution appoints US Bank as the registrar and paying agent for the 2024 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 2024 General Obligation Bonds. The resolution
also amends the tax levy requirements needed for the repayment of the bonds.
Background /Analysis:
On May 7, 2024, the City opened bids for the 2024 General Obligation Bonds at a par amount of
$10,140,000.
The City received seven bids on the 2024 General Obligation Bonds from Janney Montgomery Scott,
Robert W. Baird & Company, Piper Sandler & Company, BOK Financial Securities, Inc., KeyBanc
Capital Markets, Inc., Mesirow Financial and Raymond James & Associates, Inc. The lowest true
interest rate bid was received from Janney Montgomery Scott of Philadelphia, Pennsylvania at 3.0656%
and a price of $10,827,997.10. The 2024 General Obligation Bonds are 10-year bonds that mature in
2034.
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May 21, 2024
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
6:00P.M., on the above date. There were present Mayor Teague , in
the chair, and the following named Council Members:
Alter, Bergus, Dunn, Harmsen, Moe, Salih, Teague
Absent: None
Vacant: None
* * * * * * *
2
Council Member Dunn 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
Moe seconded the motion to adopt. The roll was called and the vote was,
Ayes: Alter, Bergus, Dunn, Harmsen, Moe, Salih, Teague
Nays: None
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution No. 24-130
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, $10,140,000 General Obligation Bonds, Series 2024, dated June 4, 2024, 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$10,140,000 General Obligation Bonds, Series 2024, dated June 4, 2024.
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 21'day of May, 2024.
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May r
Attest:
�1 r
(Def. City Clerk ,
4
County Auditor's Certificate
I, TRAvi4 cr.,-r , County Auditor of Johnson County, State of Iowa,
hereby certify that on the 21 s t day of May , 2024 there was filed in my
office the Resolution of the City Council of the City of Iowa City, State of Iowa, adopted on the
21' day of May, 2024, such Resolution levying a tax for the purpose of paying principal and
interest on $10,140,000 of General Obligation Bonds, Series 2024, dated June 4, 2024, and
authorizing the issuance of the Bonds.
(County Seal) County Auditor of Johnson County, State of
. t .
Iowa
•
SI �dNYy✓� .
02348987\10714-144
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 affixed this day of
12024.
City Clerk, City of Iowa City, State of Iowa
(Seal)
02348385\10714-144
AGREEMENT RELATING TO PAYING AGENCY,REGISTRAR AND
. TRANSFER AGENCY
THIS PAYING AGENT/BOND REGISTRAR AGREEMENT (this "Agreement"), is entered into as of
June 4, 2024 by and between the City of Iowa City, Iowa(the "Issuer"), and U.S. Bank 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 2024 (the 'Bonds") in an aggregate principal amount of$10,140,000 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 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 Re isg tray. 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 or 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 thisAgreement.
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 tothe 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 final 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 parry.
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
parry to the other by fifteen(15)days writtennotice:
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 National Association
111 Filmore Ave East
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.
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 NATIONAL ASSOCIATION,as
Paying Agent, Registrar and
Transfer Agent
By:
Authorized Representative
Print Name: Jason R Dressel
Title: 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 350.00
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.
02349041\10714-144 '..
Item Number: 6.b.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution Authorizing and Providing for the Issuance of$10,140,000 General Obligation
Bonds, Series 2024, and Levying a Tax to Pay Said Bonds; Approval of the Tax Exemption
Certificate and Continuing Disclosure Certificate.
Prepared By: Nicole Davies, Finance Director
Reviewed By: Geoff Fruin, City Manager
Fiscal Impact: Adopted as part of the FY2024 Revised Budget and 2024-
2028 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.docx
Executive Summary:
On the May 21 City Council agenda, there are two separate resolutions for the City Council to
consider in order to complete the sale of the 2024 General Obligation Bonds. The first
resolution appoints US Bank as the registrar and paying agent for the 2024 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 2024 General Obligation Bonds. The resolution
also amends the tax levy requirements needed for the repayment of the bonds.
Background /Analysis:
On May 7, 2024, the City opened bids for the 2024 General Obligation Bonds at a par
amount of$10,140,000.
The City received seven bids on the 2024 General Obligation Bonds from Janney
Montgomery Scott, Robert W. Baird & Company, Piper Sandler & Company, BOK Financial
Securities, Inc., KeyBanc Capital Markets, Inc., Mesirow Financial and Raymond James &
Associates, Inc. The lowest true interest rate bid was received from Janney Montgomery
Scott of Philadelphia, Pennsylvania at 3.0656% and a price of $10,827,997.10. The 2024
General Obligation Bonds are 10-year bonds that mature in 2034.
LP,C�
May 21, 2024
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
6:00P.M., on the above date. There were present Mayor Teague , in
the chair, and the following named Council Members:
Alter, Bergus, Dunn, Harmsen, Moe, Salih, Teague
Absent: None
Vacant: None
* * * * * * *
2
Council Member Dunn introduced the following Resolution
entitled "Resolution Authorizing and Providing for the Issuance of$10,140,000 General
Obligation Bonds, Series 2024, 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 Moe seconded the motion to adopt, and the roll being
called thereon, the vote was as follows:
Ayes: Alter, Bergus, Dunn, Harmsen, Moe, Salih, Teague
Nays: None
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution No. 24-131
Resolution Authorizing and Providing for the Issuance of
$10,140,000 General Obligation Bonds, Series 2024, 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 the replacement or planting of trees in public areas, related utility work,
traffic control devices, lighting, trails, sidewalks, and the acquisition of real estate for such
purposes; 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 $9,300,000 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, improvement and equipping of recreation buildings and centers, swimming pools
and City Hall, 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
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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 fire stations, general corporate purpose(s), and it is deemed
necessary and advisable that General Obligation Bonds, to the amount of not to exceed $200,000
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$10,140,000 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.
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.
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• "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$10,140,000 General Obligation Bonds, Series 2024,
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.
• "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 the replacement or planting of trees in public areas, related utility work,traffic
control devices, lighting, trails, sidewalks, and the acquisition of real estate for such
purposes; 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, improvement and equipping of
recreation buildings and centers, swimming pools and City Hall; and the acquisition,
reconstruction, improvement and equipping of fire stations.
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• "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:
FISCAL YEAR(JULY 1 TO JUNE 30)
AMOUNT YEAR OF COLLECTION
$2,495,734.17 2024/2025*
$1,284,900.00 2025/2026
$1,239,650.00 2026/2027
$1,194,400.00 2027/2028
$1,149,150.00 2028/2029
$1,103,900.00 2029/2030
$1,058,650.00 2030/2031
$1,013,400.00 2031/2032
$977,200.00 2032/2033
$936,000.00 2033/2024
8
*A levy in the amount of$2,499,000 has been included in the budget previously certified
and will be used to pay the principal and interest of the Bond coming due in fiscal year
2024/2025, with any amount leftover remaining in the debt service fund to pay principal
and interest in fiscal year 2025/2026.
(NOTE: For example the levy to be made and certified against the taxable valuations of
January 1, 2024 will be collected during the fiscal year commencing July 1, 2025.)
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 19, 2024, 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 "2024 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
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
9
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
$10,140,000, 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 2024", be dated June 4, 2024, and bear interest from
the date thereof, until payment thereof, at the office of the Paying Agent, said interest
payable on December 1, 2024, and semiannually thereafter on the 1st day of June and
December in each year until maturity at the rates hereinafter provided.
Principal Interest Maturity The
Amount Rate June 1st Bonds shall
be executed
$2,000,000 6.000% 2025 by the
$905,000 5.000% 2026 manual or
$905,000 5.000% 2027 facsimile
$905,000 5.000% 2028 signature of
$905,000 5.000% 2029 the Mayor
$905,000 5.000% 2030 and attested
$905,000 5.000% 2031 by the
$905,000 4.000% 2032 manual or
$905,000 • 4.000% 2033 facsimile
$900,000 4.000% 2034 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:
b) Redemption.
i. Optional Redemption. Bonds maturing after June 1, 2031, 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
10
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
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.
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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.
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
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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
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.
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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.
I) 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
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
14
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.
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 2024"
Corporate Purpose
15
Rate:
Maturity:
Bond Date: June 4, 2024
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
hereof until paid at the rate per annum specified above, payable on December 1, 2024, 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
the replacement or planting of trees in public areas, related utility work, traffic control devices,
lighting, trails, sidewalks, and the acquisition of real estate for such purposes; 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,
improvement and equipping of recreation buildings and centers, swimming pools and City Hall;
and the acquisition, reconstruction, improvement and equipping of fire stations, 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
16
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, 2031, 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.
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.
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;
17
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
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)
18
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)
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
19
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.
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
20
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.
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. Repeal of Conflicting Resolutions or Ordinances. All ordinances and
resolutions and parts of ordinances and resolutions in conflict herewith are hereby repealed.
Section 22. 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 21'day of May, 2024.
r
Attest:
City Cler
21
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 affixed this 2-1 S+ day of
Wl , 2024.
City lerk, City of Iowa City, State of Iowa
(Seal)
034.8SKIOX4 144
Tax Exemption Certificate
of
City of Iowa City, County of Johnson, State of Iowa, Issuer
$10,140,000 General Obligation Bonds, Series 2024
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 Defmitions
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
Section 2.8 Reimbursement Bonds
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
Exhibit A Purchaser's Certificate 21
Exhibit B Municipal Advisor's Certificate 25
25
2
Tax Exemption Certificate
City of Iowa City, State of Iowa
This Tax Exemption Certificate made and entered into on June 4, 2024, 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 $10,140,000 General Obligation Bonds, Series 2024 (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 $10,140,000 aggregate principal amount of General
Obligation Bonds, Series 2024, 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 $10,859,864.60, 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 the replacement or planting of trees in public areas, related utility work, traffic
control devices, lighting, trails, sidewalks, and the acquisition of real estate for such
purposes; 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, improvement and equipping of
recreation buildings and centers, swimming pools and City Hall; and the acquisition,
reconstruction, improvement and equipping of fire stations including sums already
expended that meet the requirements of Section 2.8 hereof, 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 Janney Montgomery Scott of Philadelphia,
Pennsylvania constituting the initial purchasers of the Bonds from the Issuer.
• "Rebate Amount" means the amount computed as described in this
Certificate.
• "Rebate Fund" means the fund to be created, if necessary, pursuant to this
Certificate.
5
• "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 21, 2024,
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.
7
(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.
(m) 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 1I.2 Receipts and Expenditures of Sale Proceeds
Sale Proceeds (par plus re-offering premium of$719,864.60), less underwriter's discount
of$31,887.50, received at Closing are expected to be deposited and expended as follows:
(a) $77,380.00 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) $10,750,597.10 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 I1.3 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 the replacement or planting of trees in public areas, related utility work,
traffic control devices, lighting, trails, sidewalks, and the acquisition of real estate for such
purposes; 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, improvement and equipping of recreation buildings and centers,
swimming pools and City Hall; and the acquisition, reconstruction, improvement and equipping
of fire stations.
Section 1I.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
the governmental operations or facilities of the Issuer being financed with the Proceeds of
9
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 I1.5 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 11.6 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,
will be deposited into the Bond Fund as set forth in the Resolution. The Issuer will spend
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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 I1.7 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 2.901360 percent.
This Bond Yield has been computed on the basis of a purchase price for the Bonds equal
to the Issue Price.
Section II.8 Reimbursement Bonds
(a) Not later than 60 days after payment of Original Expenditures, the Issuer
has adopted an Official Intent and has declared its intention to make a Reimbursement
Allocation of Original Expenditures incurred in connection with Project Segment(s) from
proceeds of the Reimbursement Bonds.
(b) The Reimbursement Allocation will occur on or before the later of(i)
eighteen months after the Original Expenditures are paid or(ii) eighteen months after the
first Project Segment is placed in service, but in no event more than three years after the
Original Expenditures are paid.
(c) No other Reimbursement Allocation will be made except for Preliminary
Expenditures.
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(d) The Reimbursement Allocation has not been undertaken to avoid, in
whole or in part, arbitrage yield restrictions or arbitrage rebate requirements and will not
employ an abusive arbitrage device under Regulation 1.148-10.
(e) Within one year of the Closing Date, the Reimbursement Allocation will
not be used in a manner that results in the creation of replacement proceeds, as defined in
Regulation 1.148-1.
(f) For purposes of Section 2.8, the following terms shall have the meanings
set forth below:
(1) "Official Intent" means a declaration of intent described under
Regulation 1.150-2 to reimburse Original Expenditures with the proceeds of the
Bonds.
(2) "Original Expenditure" means an expenditure for a governmental
purpose that is originally paid from a source other than the Reimbursement
Bonds.
(3) "Preliminary Expenditures", as defined in Regulation 1.150-
2(f)(2), means architectural, engineering, surveying, soil tests, Reimbursement
Bond issuance costs, and similar costs incurred prior to commencement of
construction, rehabilitation or acquisition of a Project Segment which do not
exceed 20% of the Issue Price of the portion of the Bonds that finances the Project
Segment for which they were incurred.
(4) "Project Segment" means the costs, described in an Official Intent
of the Issuer, incurred prior to the Closing Date to acquire, construct, or improve
land, buildings or equipment excluding current operating expenses but including
costs of issuing the Reimbursement Bonds.
(5) "Reimbursement Allocation" means written evidence of the use of
Reimbursement Bond proceeds to reimburse a fund of the Issuer for Original
Expenditures paid or advanced prior to the Closing Date and incurred in
connection with a Project Segment.
(6) "Reimbursement Bonds" means the portion of the Bonds which are
allocated to reimburse the Original Expenditures paid prior to the Closing Date
and incurred in connection with a Project Segment.
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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.
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 III.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;
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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.
• 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
14
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.
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 11I.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 1II.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
15
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
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.1 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
16
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
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.
17
(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
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
18
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:
(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.
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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
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.
20
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.
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.
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- $10,140,000 General Obligation Bonds, Series 2024
Issue Price Certificate
The undersigned, on behalf of Janney Montgomery Scott, of Philadelphia, Pennsylvania,
("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 7, 2024.
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
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
22
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.
Janney Montgomery Scott of Philadelphia,
Pennsylvania
By:
Name:
•
Dated: June 4, 2024
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- $10,140,000 General Obligation Bonds, Series 2024
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 Janney Montgomery Scott, of Philadelphia, Pennsylvania
(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 4, 2024
27
Attachment 1
Terms of Offering
(Attached)
28
Attachment 2
Bids Received
(Attached)
29
Attachment 3
Bid Comparison
(Attached)
02348547\10714-144
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$10,140,000 General Obligation Bonds, Series 2024 (the "Bonds") dated June 4, 2024. The
Bonds are being issued pursuant to a Resolution of the Issuer approved on May 21, 2024 (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
, 2024.
"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 2023/2024 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: 21 s t day of May , 2024.
City of Iowa City, State of Iowa
By:
Or
Attest:
By:
Cit Clerk
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: $10,140,000 General Obligation Bonds, Series 2024
Dated Date of Issue: June 4, 2024
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:
02348609\10714-144
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 Sections 384.25, 384.26 and 384.28, 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 2024, of the City of Iowa City, State of Iowa, in the amount of$10,140,000, dated
June 4, 2024, bearing interest and maturing as follows:
Principal Interest Maturity
Amount Rate June 1st
$2,000,000 6.000% 2025
$905,000 5.000% 2026
$905,000 5.000% 2027
$905,000 5.000% 2028
$905,000 5.000% 2029
$905,000 5.000% 2030
$905,000 5.000% 2031
$905,000 4.000% 2032
$905,000 4.000% 2033
$900,000 4.000% 2034
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:
Janney Montgomery Scott of Philadelphia, Pennsylvania
and have been paid for in accordance with the terms of the contract of sale and at a price of
$10,827,977.10, 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 , 2024, 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) $7,368,329,010
Total general obligation bonded indebtedness of the
City, including this issue $52,980,000
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 $42,237,073
kind
In Witness Whereof, we have hereunto affixed our hands at the City of Iowa City, State
of Iowa, this day of , 2024.
(
M r
City Clerk
nance Dire for
(City Seal)
02348964\10714-144
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$10,140,000 General Obligation
Bonds, Series 2024, of the City dated June 4, 2024, 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 2024, 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 21 st day of
May , 2024, at Iowa City, Iowa. ) , )
City Clerk, City of Iowa City, 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 eague
, ,.
(Original Si.►.? re)
City Clerk: Kellie Grace
(Original Signature)
Finance Director: Nicole Davies
( .ginal Signature)
State of Iowa )
) SS
County of Johnson )
Subscribed and sworn to before me by Bruce Teague,Kellie Grace and Nicole Davies on this
21st day of May , 2024.
• ryi
Notary Public in and for Johnson Count , owa
(Seal) ti CONNIE MCCURDY
Commission Number 855110
�GWN My Commission Expires
April 04,2027
02348996\10714-144
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") $10,140,000 aggregate principal amount
of Issuer's General Obligation Bonds, Series 2024, dated June 4, 2024 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, Janney Montgomery Scott, 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 21 s t day of May , 2024
Finance Direct
(Seal)
Exhibit A
Closing Amounts
Deposit of Funds Instructions
(See attached closing letter of the Financial Consultant)
02348991\10714-144
AGREEMENT RELATING TO PAYING AGENCY,REGISTRAR AND
TRANSFER AGENCY
THIS PAYING AGENT/BOND REGISTRAR AGREEMENT(this"Agreement"),is entered into as of June
4, 2024 by and between the City of Iowa City, Iowa (the "Issuer"), and U.S. Bank 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 2024(the"Bonds")in an aggregate principal amount of$10,140,000 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 timoo time.
"Bank" means U.S. Bank 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 final 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 writtennotice:
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 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.
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 NATIONAL ASSOCIATION, as
Paying Agent, Registrar and Transfer Agent
By:
Authorized Representative
Print Name: Jason R Dressel
Title: Assistant Vice President
bankA
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.
CTSO4110 Paying Agent/Registrar/Transfer Agent Annual fee for the standard transfer 375.00
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 fmancial statements,
licenses, identification and authorization documents from individuals claiming authority to represent the entity or the
entity or other relevant documentation.
02349041\10714-144
Form 8038-G Information Return for Tax-Exempt Governmental Bonds
(Rev.October 2021) ►Under 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/F8038G for instructions and the latest information.
Part I Reporting Authority Check box if Amended Return► ❑
1 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 [7 1
6 City,town,or post office,state,and ZIP code 7 Date of issue
Iowa City,Iowa 52240 June 4,2024
8 Name of issue 9 CUSIP number
$10,140,000 General Obligation Bonds,Series 2024 462308 T64
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 9,521,424.38
14 Public safety 14 141,461.16
15 Environment(including sewage bonds) 15
16 Housing 16
17 Utilities 17
18 Other. Describe►Parks and Recreation 18 1,196,979.06
19a If bonds are TANs or RANs,check only box 19a ► ❑ I
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 06/01/2034 $ 10,859,864.60 $ 10,140,000 5.059 years 2.90136 %
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 10,859,864.60
24 Proceeds used for bond issuance costs(including underwriters'discount) 24 109,267.50
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
29 Total(add lines 24 through 28) 29 109,267.50
30 Nonrefunding proceeds of the issue(subtract line 29 from line 23 and enter amount here) . . 30 10,750,597.10
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 . . . ► 0.000o 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 803E-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 P.
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 No-
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. ❑✓ 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
Signature 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
process this return,to the person that I have authorized above.
and
Consent Nicole Davies,Finance Director
' ign ure of issuer authorized 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 toghlers&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)
Tax Exemption Certificate
of
City of Iowa City, County of Johnson, State of Iowa, Issuer
$10,140,000 General Obligation Bonds, Series 2024
This instrument was prepared by:
Alders & 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
Section 2.8 Reimbursement Bonds
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
Exhibit A Purchaser's Certificate.................................................................21
Exhibit B Municipal Advisor's Certificate......................................................25
25
2
Tax Exemption Certificate
City of Iowa City, State of Iowa
This Tax Exemption Certificate made and entered into on June 4, 2024, 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 $10,140,000 General Obligation Bonds, Series 2024 (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 $10,140,000 aggregate principal amount of General
Obligation Bonds, Series 2024, 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 fust 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-l(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 $10,859,864.60, 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 the replacement or planting of trees in public areas, related utility work, traffic
control devices, lighting, trails, sidewalks, and the acquisition of real estate for such
purposes;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, improvement and equipping of
recreation buildings and centers, swimming pools and City Hall; and the acquisition,
reconstruction, improvement and equipping of fire stations including sums already
expended that meet the requirements of Section 2.8 hereof, 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 Janney Montgomery Scott of Philadelphia,
Pennsylvania constituting the initial purchasers of the Bonds from the Issuer.
• 'Rebate Amount" means the amount computed as described in this
Certificate.
• 'Rebate Fund" means the fund to be created, if necessary, pursuant to this
Certificate.
5
• "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 21, 2024,
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 11
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.
7
(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.
0) 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.
(m) 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$719,864.60), less underwriter's discount
of$31,887.50, received at Closing are expected to be deposited and expended as follows:
(a) $77,380.00 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) $10,750,597.10 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 II.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 the replacement or planting of trees in public areas, related utility work,
traffic control devices, lighting, trails, sidewalks, and the acquisition of real estate for such
purposes;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, improvement and equipping of recreation buildings and centers,
swimming pools and City Hall; and the acquisition,reconstruction, improvement and equipping
of fire stations.
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
the governmental operations or facilities of the Issuer being financed with the Proceeds of
9
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
(mance 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 II.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,
will be deposited into the Bond Fund as set forth in the Resolution. The Issuer will spend
10
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 2.901360 percent.
This Bond Yield has been computed on the basis of a purchase price for the Bonds equal
to the Issue Price.
Section II.8 Reimbursement Bonds
(a) Not later than 60 days after payment of Original Expenditures,the Issuer
has adopted an Official Intent and has declared its intention to make a Reimbursement
Allocation of Original Expenditures incurred in connection with Project Segment(s) from
proceeds of the Reimbursement Bonds.
(b) The Reimbursement Allocation will occur on or before the later of(i)
eighteen months after the Original Expenditures are paid or (ii) eighteen months after the
fust Project Segment is placed in service, but in no event more than three years after the
Original Expenditures are paid.
(c) No other Reimbursement Allocation will be made except for Preliminary
Expenditures.
11
(d) The Reimbursement Allocation has not been undertaken to avoid, in
whole or in part, arbitrage yield restrictions or arbitrage rebate requirements and will not
employ an abusive arbitrage device under Regulation 1.148-10.
(e) Within one year of the Closing Date, the Reimbursement Allocation will
not be used in a manner that results in the creation of replacement proceeds, as defined in
Regulation 1.148-1.
(f) For purposes of Section 2.8,the following terms shall have the meanings
set forth below:
(1) "Official Intent" means a declaration of intent described under
Regulation 1.150-2 to reimburse Original Expenditures with the proceeds of the
Bonds.
(2) "Original Expenditure" means an expenditure for a governmental
purpose that is originally paid from a source other than the Reimbursement
Bonds.
(3) "Preliminary Expenditures", as defined in Regulation 1.150-
2(f)(2),means architectural, engineering, surveying, soil tests, Reimbursement
Bond issuance costs, and similar costs incurred prior to commencement of
construction,rehabilitation or acquisition of a Project Segment which do not
exceed 20% of the Issue Price of the portion of the Bonds that finances the Project
Segment for which they were incurred.
(4) "Project Segment" means the costs, described in an Official Intent
of the Issuer, incurred prior to the Closing Date to acquire, construct, or improve
land, buildings or equipment excluding current operating expenses but including
costs of issuing the Reimbursement Bonds.
(5) 'Reimbursement Allocation" means written evidence of the use of
Reimbursement Bond proceeds to reimburse a fund of the Issuer for Original
Expenditures paid or advanced prior to the Closing Date and incurred in
connection with a Project Segment.
(6) 'Reimbursement Bonds" means the portion of the Bonds which are
allocated to reimburse the Original Expenditures paid prior to the Closing Date
and incurred in connection with a Project Segment.
12
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.
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 III.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;
13
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.
• 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
14
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.
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 detired 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
15
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
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.1 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
16
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
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 IVA 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.
17
(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
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
18
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:
(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.
19
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
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.
20
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.
Section VIA 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.
In Witness Whereof, the Issuer has caused this Certificate to be executed by its duly
authorized officer, all as of the day fust above written.
Finance Director, City of Iowa City, State of
Iowa
(Seal)
21
Exhibit A
Iowa City,Iowa - $10,140,000 General Obligation Bonds,Series 2024
Issue Price Certificate
The undersigned, on behalf of Janney Montgomery Scott, of Philadelphia,Pennsylvania,
("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 fust 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 7, 2024.
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
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
22
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.
Janney Montgomery Scott of Philadelphia,
Pennsylvania
By:
Name:
Dated: June 4, 2024
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 - $10,140,000 General Obligation Bonds,Series 2024
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 Janney Montgomery Scott, of Philadelphia,Pennsylvania
(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 4,2024
27
Attachment 1
Terms of Offering
(Attached)
28
Attachment 2
Bids Received
(Attached)
29
Attachment 3
Bid Comparison
(Attached)
02348547\10714-144
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$10,140,000 General Obligation Bonds, Series 2024 (the 'Bonds") dated June 4, 2024. The
Bonds are being issued pursuant to a Resolution of the Issuer approved on May 21, 2024 (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
12024.
"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 2023/2024 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 12024.
City of Iowa City, State of Iowa
By:
Mayor
Attest:
By:
City Clerk
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: $10,140,000 General Obligation Bonds, Series 2024
Dated Date of Issue: June 4, 2024
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 120
City of Iowa City, State of Iowa
By:
Its:
02348609\10714-144
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 Sections 384.25, 384.26 and 384.28, 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 2024, of the City of Iowa City, State of Iowa, in the amount of$10,140,000, dated
June 4, 2024, bearing interest and maturing as follows:
Principal Interest Maturity
Amount Rate June 1st
$2,000,000 6.000% 2025
$905,000 5.000% 2026
$905,000 5.000% 2027
$905,000 5.000% 2028
$905,000 5.000% 2029
$905,000 5.000% 2030
$905,000 5.000% 2031
$905,000 4.000% 2032
$905,000 4.000% 2033
$900,000 4.000% 2034
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:
Janney Montgomery Scott of Philadelphia, Pennsylvania
and have been paid for in accordance with the terms of the contract of sale and at a price of
$10,827,977.10, 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 , 2024, 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) $7,36853295010
Total general obligation bonded indebtedness of the
City, including this issue $5259805000
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 $4252375073
kind
In Witness Whereof, we have hereunto affixed our hands at the City of Iowa City, State
of Iowa,this day of 12024.
Mayor
City Clerk
Finance Director
(City Seal)
02348964\10714-144
Transcript Certificate
I,the undersigned,being fust 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$10,140,000 General Obligation
Bonds, Series 2024,of the City dated June 4,2024, 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 2024, 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 day of
2024,at Iowa City,Iowa.
City Clerk,City of Iowa City, 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 Signature)
City Clerk: Kellie Grace
(Original Signature)
Finance Director: Nicole Davies
(Original Signature)
State of Iowa )
) SS
County of Johnson )
Subscribed and sworn to before me by Bruce Teague,Kellie Grace and Nicole Davies on this
day of 2024.
Notary Public in and for Johnson County,Iowa
(Seal)
02348996\10714-144
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") $10,140,000 aggregate principal amount
of Issuer's General Obligation Bonds, Series 2024, dated June 4, 2024 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, Janney Montgomery Scott, 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 day of 12024
Finance Director
(Seal)
Exhibit A
Closing Amounts
Deposit of Funds Instructions
(See attached closing letter of the Financial Consultant)
02348991\10714-144
County Auditor's Certificate
I, , County Auditor of Johnson County, State of Iowa,
hereby certify that on the day of , 2024 there was filed in my
office the Resolution of the City Council of the City of Iowa City, State of Iowa, adopted on the
21st day of May, 2024, such Resolution levying a tax for the purpose of paying principal and
interest on $10,140,000 of General Obligation Bonds, Series 2024, dated June 4, 2024, and
authorizing the issuance of the Bonds.
(County Seal) County Auditor of Johnson County, State of
Iowa
02348987\10714-144
Council Member introduced the following Resolution
entitled 'Resolution Authorizing and Providing for the Issuance of$10,140,000 General
Obligation Bonds, Series 2024, 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 seconded the motion to adopt, and the roll being
called thereon, the vote was as follows:
Ayes:
Nays:
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution Authorizing and Providing for the Issuance of
$10,140,000 General Obligation Bonds, Series 2024, 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 the replacement or planting of trees in public areas, related utility work,
traffic control devices, lighting, trails, sidewalks, and the acquisition of real estate for such
purposes;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 $9,300,000 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, improvement and equipping of recreation buildings and centers, swimming pools
and City Hall, general corporate purpose(s), and it is deemed necessary and advisable that
1
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, reconstruction,
improvement and equipping of fire stations, general corporate purpose(s), and it is deemed
necessary and advisable that General Obligation Bonds, to the amount of not to exceed $200,000
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$10,140,000 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.
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.
2
• "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 $10,140,000 General Obligation Bonds, Series 2024,
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.
• "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 the replacement or planting of trees in public areas, related utility work, traffic
control devices, lighting, trails, sidewalks, and the acquisition of real estate for such
purposes;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
3
already owned, including facilities, equipment and improvements commonly found in
city parks;the acquisition,reconstruction, redevelopment, improvement and equipping of
recreation buildings and centers, swimming pools and City Hall; and the acquisition,
reconstruction, improvement and equipping of fire stations.
• "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:
FISCAL YEAR(JULY 1 TO JUNE 30)
AMOUNT YEAR OF COLLECTION
$2,495,734.17 2024/2025*
$1,284,900.00 2025/2026
$1,239,650.00 2026/2027
$1,194,400.00 2027/2028
$1,149,150.00 2028/2029
$1,103,900.00 2029/2030
$1,058,650.00 2030/2031
$1,013,400.00 2031/2032
$977,200.00 2032/2033
$936,000.00 2033/2024
4
*A levy in the amount of$2,499,000 has been included in the budget previously certified
and will be used to pay the principal and interest of the Bond coming due in fiscal year
2024/2025,with any amount leftover remaining in the debt service fund to pay principal
and interest in fiscal year 2025/2026.
(NOTE: For example the levy to be made and certified against the taxable valuations of
January 1, 2024 will be collected during the fiscal year commencing July 1, 2025.)
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 19, 2024, 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 "2024 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
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
5
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
$10,140,000, 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 2024", be dated June 4, 2024, and bear interest from
the date thereof, until payment thereof, at the office of the Paying Agent, said interest
payable on December 1, 2024, 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:
Principal Interest Maturity
Amount Rate June 1st
$2,000,000 6.000% 2025
$905,000 5.000% 2026
$905,000 5.000% 2027
$905,000 5.000% 2028
$905,000 5.000% 2029
$905,000 5.000% 2030
$905,000 5.000% 2031
$905,000 4.000% 2032
$905,000 4.000% 2033
$900,000 4.000% 2034
b) Redemption.
i. Optional Redemption. Bonds maturing after June 1, 2031, 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
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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
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
7
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.
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,
8
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 'blearing 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
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.
9
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
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
10
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.
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 2024"
Corporate Purpose
11
Rate:
Maturity:
Bond Date: June 4, 2024
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
hereof until paid at the rate per annum specified above, payable on December 1, 2024, 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
the replacement or planting of trees in public areas,related utility work, traffic control devices,
lighting,trails, sidewalks, and the acquisition of real estate for such purposes;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,
improvement and equipping of recreation buildings and centers, swimming pools and City Hall;
and the acquisition, reconstruction, improvement and equipping of fire stations, 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
12
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, 2031, 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.
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.
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;
13
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
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)
14
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)
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
15
IA UNIF TRANS MIN ACT - .......... Custodian ..........
(Gust) (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.
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
16
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.
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. Repeal of Conflicting Resolutions or Ordinances. All ordinances and
resolutions and parts of ordinances and resolutions in conflict herewith are hereby repealed.
Section 22. 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.
17
Passed and Approved this 215 day of May, 2024.
Mayor
Attest:
City Clerk
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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 affixed this day of
12024.
City Clerk, City of Iowa City, State of Iowa
(Seal)
02348385\10714-144
Item Number: 6.c.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution adopting regulations governing the operation of Oakland Cemetery including lot
owner rights, maintenance practices, and visitor rules and rescinding Resolution No. 24-22.
Prepared By: Susan Dulek, First Ass't. City Attorney
Reviewed By: Geoff Fruin, City Manager
Juli Seydell Johnson, Director of Parks and Recreation
Russ Buffington, Cemetery Supervisor
Fiscal Impact: none
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Cemetery Regulations - redlined version
Resolution
Cemetery Regulations - clean version
Executive Summary:
The City Code provides regulations governing the operation of Oakland Cemetery shall be
established by resolution of the City Council. When Council updated the regulations in early
2024, no provisions addressed cremation monuments (a monument which is hollow to allow
placement of an urn). This resolution amends the the regulations to add provisions for
cremation monuments, and there are no other substantive changes.
OAKLAND CEMETERY REGULATIONS
Purchase of Lots
Persons desiring to purchase a lot or niche in Oakland Cemetery are referred to the
cemetery staff. Following the selection of a lot or niche, the prospective purchaser will need to
pay for said lot/niche in full by either cash or check. The purchaser will be given a receipt for
the transaction. The cemetery staff will take all funds and lot sale information to the City Clerk
to have the Certificate of Interment issued, recorded and mailed to the purchaser.
The Certificate of Interment will be placed only in the name(s) of a living person(s),
except in the case of a single space purchased by the estate of the deceased. At the time of need,
the cemetery lot or niche must be fully paid prior to the opening of the grave or niche.
Ownership Rights
The term "lot owner" or 'ownership" shall be defined as the right to use a lot or niche, or
part of a lot, as purchased from the City for burial purposes only, and under the existing and
subsequent regulations as prescribed by the City for such use. Ownership of the right will be
evidenced by a Certificate of Interment issued by the City.
Lots or fractional lots, for which the City has issued Certificates of Interment (known as
lot "cemetery deeds" prior to February 6, 2024), will not thereafter be divided except by consent
of the City. This Certificate of Interment rights conveys only a right to be interred in the
interment space(s) and in no way is any real estate title conveyed to the purchaser. All lots and
niches are exempt from taxation and cannot be seized for debt (except those owed to the
Cemetery)nor can they be mortgaged.
The City shall have the right to assume, at all times, that the lot/niche owner acquired the
lot/niche for the interment of the owner and family members. Unless otherwise directed in
writing and filed with the City Clerk by the owner, devisees, or heirs, the City will permit the
interment of family members at the request of any interested person upon the proof of eligibility
for burial as follows:
a. The surviving spouse of the lot/niche owner shall have the fust right to interment
or to direct the right of interment.
b. When there is no surviving spouse, the devisees or heirs of the owner may, by
agreement in writing, determine who among them shall have the right of
interment or direction of interment, which agreement shall be notarized and filed
with the City Clerk.
C. In the event the owner, devisees, or heirs shall not have arranged for future
interment,then the devisees or heirs as the case may be, of such owner, shall have
the right to interment in order of their need.
Only persons whose names appear on the Cemetery records of the City will be
recognized as owners or part owners of lots/niches. In the case of the will, a copy of the will
provided by a law office, a copy filed as part of an estate proceeding, or a similar means that
provides adequate verification of its authenticity, as solely determined by the City, shall be
delivered to the City Clerk before the City will recognize the change in ownership. If the
deceased lot/niche owner left no will, satisfactory proof of descent, as solely determined by the
City, shall be presented.
The Certificate of Interment invests the owner the right to use such lot(s) for burial
purposes only, for themselves, their heirs, or any such person(s) as they may choose to admit,
provided such admission is free of charge and without compensation and in accordance with the
Cemetery Regulations. Lot/niche owners may not resell or transfer their lots/niches or parts of
lots to anyone whomsoever. Transfer of a Certificate of Interment may be made only to the
owner's spouse or children by the surrender of the original Certificate of Interment (or deed) and
issuance of a new Certificate of Interment by the City to the new owners of lots/niches or parts of
lots so transferred. Lot/niche owners desiring to dispose of lots/niche(s) or parts of lots, may
upon surrender of the original Certificates of Interment(or deeds), sell the lots/niche(s) or part of
lots, back to the City for a price not to exceed the original purchase price of the lot/niche. Niches
cannot be repurchased if any engraving has been done.
Certain older lots, no longer usable due to their small size, would have no resale value
and are best left open. Said lots could be used, with the permission of the owners or heirs
thereof, to further the Cemetery beautification plan.
Interment
The funeral director, or person(s) making arrangements, for the interment shall, as soon
as there is knowledge of a pending service, notify the Cemetery staff. Said notification,
including all information pertaining to the gravesite and additional information as required, shall
be provided by the funeral director or person(s) assuming responsibility for the service. Based
on the information given to them, Cemetery staff will locate the exact site and determine the
earliest possible time a service can be held. When definite information for locating the gravesite
is not available, the Cemetery staff will exercise its best judgment in making the location. The
Cemetery assumes no responsibility for any error in such a location.
If a burial permit is required by the Code of Iowa, Section 144.32, no burial will be
allowed until a burial permit is provided to the Cemetery staff.
A charge for opening and closing the grave or niche, as well as the sodding or seeding of
the grave, will be made at a current rate set by the City. The payment of said charge becomes the
responsibility of the individual(s) in charge of interment. The account becomes due upon receipt
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of a statement issued by the City of Iowa City. Individuals, who make the arrangements, if not a
funeral director, must make payment prior to the grave or niche opening.
Graves shall be dug by Cemetery staff and shall conform to all applicable state laws.
Only Cemetery staff shall open niches.
A member of the Cemetery staff shall be present at every interment or service.
The interment of bodies of persons who have died of a contagious disease shall be in
strict accordance with the rules of the Iowa Department of Health and Human Services.
If a permanent type of outer container is not used for the interment, a special charge will
be levied to cover the extra maintenance required. Said special charge is listed in the Schedule
of Rates and Charges. In areas of Oakland Cemetery established prior to January 1, 2000, the
minimum container used for the interment of an adult body shall be an enclosed container with a
bottom strong enough to support the weight of the body when lifting at each end. Full body
interments made in areas established after January 1, 2000, require a permanent-type container of
concrete or other approved material.
The interment of more than one body in a single casket will not be allowed except in the
case of a parent and infant or two children interred at the same time. The limitation of numbers
of cremated remains allowed in one full body grave space purchased prior to July 1, 1991, is
regulated only by space. Full body adult graves purchased after June 30, 1991, are limited to a
maximum of four cremated remains each and only if planned in advance. In all cases, multiple
interments and/or cremated remains,marker regulations must be observed.
Interments requiring special consideration(s) of utilizing equipment not normally
available to the Cemetery staff could be provided upon request. Adequate time must be allowed
for preparation. Fees and charges must reflect the cost of the extra equipment, time and
materials. Such practices must be arranged by advance notification.
In addition to interment of cremated remains on family lots, there are two areas available
for the interment of single cremated remains and a columbarium for the interment of single
cremated remains. Locations and size restrictions can be obtained from Cemetery staff.
Exceptions to allowing one cremated remains to a single space or niche will be made only in
case of a parent and infant or two children interred at the same time. Only one urn may be
placed in a niche. Cremated remains must be interred or inurned and may not be distributed into
the atmosphere.
Single burial spaces for infants/babies are available in two areas - Babyland with 2' x 4'
spaces and Innocence with 2.5' x 4.5' spaces.
No interments of a body other than that of a human being will be permitted.
Should weather become a factor, or when several burials occur in a one (1) or two (2) day
period, the Cemetery staff shall schedule interments, working in close cooperation with the
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funeral directors. To avoid conflict, it will be necessary to honor service communications from
the funeral directors according to the time received.
Interments will be scheduled to enter Oakland Cemetery no later than 3:00 p.m. Monday
through Friday, and 1:00 p.m. Saturday. Interments that require work being done other than
during regular work hours Monday through Friday will be charged extra at the current overtime
rate for actual time spent. Interments will not be scheduled after 1:00 p.m. on Saturdays.
Requests for burials outside of designated hours must be approved by the Director of the
Department of Parks and Recreation, or designee. Request will only be approved for unique and
unusual circumstances, as solely determined by the City. No interments will be scheduled on
an official City holiday.
The interment regulations apply to the interment of cremated remains on a lot with a
cremation monument(a monument which is hollow for the purpose of placement of an urn).
Removal(Disinterment)
Removals of bodies from graves in Oakland Cemetery will be done only by the City, in
accordance with the requirements or the statutes of the State and the rules of the Iowa
Department of Health and Human Services. Charges made by the City for removal will be made
in accordance with the difficulty of the work and are payable in advance. The minimum charge
will be equal to twice the current charge for opening a grave of similar size.
Lot owners or their heirs desiring graves opened shall secure the necessary disinterment
permit from the State and deliver it to the Cemetery staff.
Public Lots
Grandview Addition, Lots 60 through 70 and Lots 77 through 78 and Valleyview Lots 53
through 78 and Lots 131 through 156, have now been designated as a burial ground for those
persons for whom no other place is provided. The graves will normally be dug in sequence and
in an orderly fashion except in the case of a requested reservation of a space for a spouse or
sibling(s). The requested reservation shall be made in writing and must be renewed annually. If
the person being interred in the reserved space doesn't meet the requirements for burial assistance
through Johnson County, the space must be purchased at the current rate and the full interment
charge must be paid. The Cemetery staff shall record all interments.
Military Lots
The west one-fourth (W 1/4) of block thirteen (13) of Oakland Cemetery and any
additional space that may be so designated by the Director, or designee, shall be designated as
burial ground for any person who has served in the military and been honorably discharged and
the service member's spouse. Note that as of 2/6/24, the lots available for service members and
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their spouses are temporarily not identified due to the need for City staff to search and review old
records in this section of block thirteen (13).
Stone and Monument Work
Monument dealers and the purchasers are encouraged to contact the Cemetery office
prior to ordering a monument to check on monument restrictions.
The City of Iowa City does not engage in stone or monument installation or repair;
however, all stone and monument work within Oakland Cemetery shall be subject to the
following regulations and requirements:
All monuments must either be flush with the ground or be at least four inches (4")
in height. The base for all-flush monuments or upright markers must correspond
as closely as possible to the contour of the existing soil surface. No monument
may be installed in such a fashion that it extends beyond the boundaries of the
designated lot or grave, or that will interfere with future grave openings or the
movement of the Cemetery maintenance equipment.
Monuments and/or foundations may not be wider than 65% of the width of the
space or spaces and may not be more than 24" from the front to back.
Monuments may not be larger than the base. By request, exceptions may be made
on larger lots in areas of the Cemetery that were established prior to 1974 or in
areas of the 2001 expansion that will not interfere with the opening of graves or
the movement of equipment.
Polished bases or monuments polished to the ground are not recommended, and
the City of Iowa City or its employees assume no liability for the actual damages
in the performance of normal maintenance operations.
The setting of monuments and the transportation of all tools, materials, etc.,
within the Cemetery grounds shall be subject to the supervision and control of the
Cemetery management. No unnecessary damage to the existing turf will be
allowed, and all debris is to be removed from the Cemetery except soil. Excess
soil must either be removed from the Cemetery or may be placed in the Cemetery
stockpile. It may not be used to fill in low areas or distributed on adjacent lots.
Heavy trucking will not be permitted within the Cemetery when, in the opinion of
the Cemetery management, such work might cause damage to the grounds or
driveways. Once begun, all monument and stone work is to be completed and any
accumulated debris is to be removed from the site within a seven-day period. All
work must be done during regular Cemetery hours of operation, Monday through
Friday, unless by special permission from the Cemetery management.
The local climate is such that marble is not recommended as a suitable material
for monument use. Granite is a much more durable stone. Bronze is an
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acceptable material. Cemetery management prior to installation must approve
other material.
Only those lot pins set by the City of Iowa City are allowed in areas where
lots/spaces are pinned individually.
Stone work or monuments of any sort, once established in Oakland Cemetery,
may not be removed except by permission of the Cemetery management. Details
concerning monument restrictions for specific areas of Oakland Cemetery are
found in Individual Lot Restrictions.
No cremation monument (a monument which is hollow for the purpose of placement of
an urn) may be installed without prior approval of the City. The opening must have a
lock and a key to the lock must be provided to Cemetery staff. Cemetery staff must be
present at the time the urn is interred and at any time the urn is subsequently removed
from the monument (also known as uninterred) and any time the urn is placed back inside
the monument.
The City reserves the right to approve the design and lettering on a monument and stone.
Design and lettering that are profane, vulgar, or obscene will not be approved and are not
allowed in the cemetery. No design or lettering that promotes or references a controlled
substance will be approved or allowed.
Vaults and Mausoleums
Vaults or mausoleums are not permitted on lots less than 400 square feet and the portion
of the lot occupied by the building shall not exceed 25%. In no case will permission be given to
set the building nearer to the lot line than five (5) feet. Where the vault or mausoleum exceeds
five (5) feet in height, the setback shall be five (5) feet plus one (1) foot for each additional foot
or fraction thereof.
All applications for permits to erect such structures shall be made in writing to the
Cemetery management. Complete plans and specifications of the proposed construction,
including details of materials, workmanship, method of construction, etc., shall accompany such
an application, and the approval of the City of Iowa City shall be obtained before any
construction work is begun. The City of Iowa City reserves the right to prohibit the erection or
any structure that is not considered to be safe, suitable, desirable or appropriate.
Before any vault or mausoleum may be erected, the lot owner shall pay the City an
amount of not less than ten percent (10%) of the cost of the structure. Check, cash, or credit card
is to be made payable to the City of Iowa City and submitted to the Finance Department, and will
be used by the City for the future care and maintenance of the structure and grounds. Vaults and
mausoleums may be placed only on such lots considered to be appropriate for said purpose by
the Cemetery management.
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Maintenance Practices
Oakland Cemetery, a non-perpetual care cemetery, assumes all responsibility for the
maintenance of all lots that have been sold or will be sold. All monies previously collected for
perpetual care will be held in a separate trust and interest therefrom will be used to maintain
graves deeded under perpetual care. Landscaping and maintenance of the Cemetery, including
all lots therein, shall be under the direction of the Cemetery staff.
Permission for all permanent plantings must be acquired from the Cemetery staff.
Permanent plantings that are planted without permission may be removed without notice.
Generally, it will not be possible to locate evergreen or shrub plantings directly on the gravesite.
In most cases, a nearby location will be designated as part of a group planting to enhance the
entire area.
Existing individual lot plantings may be trimmed or removed by the Cemetery staff when
they have become unsightly or unmanageable. Individual plantings so removed may be
replanted as a part of a group planting.
No hedges, fences, or enclosures of any kind will be permitted on or around lots. Any
objects that are obstructing the general maintenance of the Cemetery shall be removed without
notice. Existing enclosures will be removed when they have deteriorated to an unattractive or
unsafe condition.
Live flowers in plastic or paper mache containers are most welcome and may be used at
all times. Annuals or perennials planted on the graves must be limited to a small area directly
next to the monument and must be mulched and tended by the planter. Plantings must be kept
weed and grass free, and those that are not tended and become unsightly shall be removed
without notice by Cemetery staff. Plantings must be on the respective lot and not extend more
then 12" from the monument. The Cemetery staff assumes no responsibility for the preservation,
maintenance, or protection of any type of grave decoration. Plants that must be removed for
grave opening will be set to the side and are the planter's responsibility to replant.
Placement of funeral or special anniversary flowers will be allowed for a period of
approximately five days; after this period, they will be removed. Notification of placement of
special flowers will be given to the Cemetery Superintendent. Artificial wreaths, artificial
flowers, and holiday decorations may be used any time between November 15 to the end of
February and for a period of four (4) days before and five (5) days after Memorial Day. After
that period, if not claimed, they will be removed from the site. The Cemetery staff assumes no
responsibility for lost or stolen articles. The use of flags and emblems may be used for a period
of four (4) days before and five (5) days following Memorial Day, but they will be removed and
stored, without responsibility for preservation, if still in place on the sixth day following
Memorial Day.
All wooden boxes, glass jars and bottles, toys, cans, wired flowers, and other objects that
might create a mowing hazard will not be permitted during the mowing season except as
designated and, when used, will be removed and disposed of by the Cemetery staff without
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notice. Shepherd's crooks are permitted, but when used they must be placed directly next to the
side of the monument with the crook over the monument. All paintings or decorations placed on
the crook must comply with all Cemetery decoration rules. Exceptions may be made in
Babyland and Innocence sections if approved by the Cemetery management.
The City of Iowa City reserves the right for its staff and other persons to enter upon or
cross over any lot in the Cemetery when deemed necessary to the performance of normal
Cemetery operation.
The City of Iowa City reserves the right to move monuments for the purpose of machine
digging graves. The City of Iowa City assumes the responsibility for resetting the monument in
a timely manner.
The City of Iowa City, its officers, and employees are not responsible for property
damage„ emotional distress, or any other loss suffered by a visitor or lot owner as the result of
the City's operation of the cemetery or for any loss due to vandalism or other acts beyond the
City's reasonable control.
The lot owner should feel free to consult with the Cemetery staff regarding any item or
clarification of the rules and regulations at any time.
Rules for Visitors
Visiting hours for the Cemetery are from 7:30 a.m. to 9:00 p.m. Visitors are requested to
use designated walks and drives and not to trespass unnecessarily on Cemetery lots, pick any
flowers, damage any shrub, tree or plant, or mar or deface any monument, stone or structure in
the Cemetery. The use of materials such as are necessary to produce the art form known as
rubbings or tracings are prohibited on any monument, stone or statuary within the boundary of
Oakland Cemetery.
Controlled use permits are required for all special projects or groups entering the
Cemetery for purposes other than attending funeral services or a grave visitation. Special use
permits are available at the Cemetery office or on the City of Iowa City web page at
www.icgov.org. Arrangements must be made well in advance of need. Filming or videotaping
of funeral proceedings is not allowed without permission from the immediate family.
Brown Street is designated as the entrance and exit for vehicles in Oakland Cemetery.
Vehicles traveling within the Cemetery shall observe the hours of visitation as previously
stated and shall proceed at a rate not to exceed ten (10) miles per hour. Drivers should be aware
at all times of the City's right to alter, change or close alleyways, roadways, and other physical
properties of the Cemetery.
Firearms may not be discharged inside the Cemetery. Blank ammunition may be
discharged at military funerals and military services, such as Memorial Day. Special
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permission to discharge blank ammunition must be obtained in advance from the Cemetery
Superintendent.
Individual Lot Restrictions
Graceland, lots 1-281, Grandview, Prospect Hill, Fernland, Fairview and all numbered
block sections, except for lots numbered above 92 in block 9 and 108 in block 29, are designated
as having unrestricted monument privileges that permit the installation of both family
monuments and individual grave monuments where the lot area is of sufficient size. The
monument must be placed on solid ground and shall not interfere with future grave openings or
the movement of Cemetery maintenance equipment.
On Graceland Drive, the monument must be on the west for lots 1-110 and lots 160-208.
The monument must be on the east for lots 111-159. Additional monuments, if used, must be
flush with the contour of the existing ground.
Glenview, Cedarview, Sunny Slope, and lots numbered above 92 in block 9 and 108 in
block 29 have flush monuments. Only one monument per grave or a double monument, as for a
married couple, for two adjoining graves is permitted.
Innocence (an infant/baby area) monuments are restricted to 65% of the width of the
space, or 20 inches, and may not be more than 10 inches from front to back. The monument
must be placed at the west end of the lot and placed flush with the contour of the existing soil.
Babyland monuments are restricted to 65% of the width of the space, or 15.6 inches, and
may not be more than 9 inches from front to back. The monument must be placed at the west
end of the lot.
The monument must be on the west end of all lots in Rose Hill, Oak Green, and
Graceland lots 282-331. Foot stones, if used, must be flush with the contour of the existing soil.
Foot stones may be placed at any time on lots that are 12 feet long,but may be placed after burial
only on lots that are 10 feet long.
In the following sections, the Director may designate certain lots as restricted to flush
monuments. Lots restricted to flush monuments will be shown on a map and/or a list available
on the City website. Based on the reasonable needs of the Cemetery, as solely determined by the
Director, the Director may change said designation.
Oak Ridge, Sunrise, Deerview, Forrest Lawn, Oakview,Valleyview, Hickoryview.
Forestview and Cherish Columbarium: The City reserves the right to approve the design
and lettering of any niche face or bud vase. Design and lettering that are not profane, vulgar, or
obscene will not be approved and are not allowed in the cemetery, and no design or lettering that
promotes or references a controlled substance will be approved or allowed. The face of a niche
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is 12" by 12". All engraving, inscription, lettering, symbols, insignias, etc. are to be cut into the
polished face. No coloring or highlighting is allowed. The lettering for the name and dates shall
be #9 Condensed Roman. Additional sayings must be #20 Vermarco.
Attachments are limited to one small bud vase for cut flowers in the mowing season and
artificial when allowed (see maintenance section of rules). No temporary attachments such as
tape,wire, string or stickers are allowed. All bud vases shall be of the same style, size and color.
Bud vases must be mounted on the right side of the niche and the decorations may not encroach
on adjoining niches.
Fees and Pavments
The payment of fees and charges is due when billed by the City. Fees, rates and charges
shall be specified herein or as established by the City Council.
Revised: 5/24 (Resolution No. 24-_)
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Prepared by: Susan Dulek, First Ass't. City Atty, 410 E. Washington St., Iowa City, IA 52240; 319/356-5030
Resolution No. 24-132
Resolution adopting regulations governing the operation of Oakland
Cemetery including lot owner rights, maintenance practices, and
visitor rules and rescinding Resolution No. 24-22.
Whereas, Section 10-7-2 of the Iowa City Code provides regulations governing the operation of
Oakland Cemetery shall be established by resolution of the City Council; and
Whereas, City Council adopted regulations in Resolution No. 24-22, which did not include
regulations for cremation monuments; and
Whereas, it is in the public interest to adopt the attached revised Oakland Cemetery Regulations
to add regulations for cremation monuments.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. The attached Oakland Cemetery Regulations is adopted.
2. Resolution No. 24-22 is rescinded.
Passed and approved this 21st day of May, 2024.
f(
Ma
Attest: 1.1-S2-Q-A-18 -(22::
O City Clerk
Approved By:
City Y
Attorn ice
(Sue Dule —05/10/2024)
Resolution No. 24-132
Page 2
It was moved by Dunn and seconded by MOe _ the Resolution
be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Alter
x Bergus
x Dunn
x Harmsen
x Moe
x Salih
x Teague
OAKLAND CEMETERY REGULATIONS
Purchase of Lots
Persons desiring to purchase a lot or niche in Oakland Cemetery are referred to the
cemetery staff. Following the selection of a lot or niche, the prospective purchaser will need to
pay for said lot/niche in full by either cash or check. The purchaser will be given a receipt for
the transaction. The cemetery staff will take all funds and lot sale information to the City Clerk
to have the Certificate of Interment issued, recorded and mailed to the purchaser.
The Certificate of Interment will be placed only in the name(s) of a living person(s),
except in the case of a single space purchased by the estate of the deceased. At the time of need,
the cemetery lot or niche must be fully paid prior to the opening of the grave or niche.
Ownership Rights
The term "lot owner" or "ownership" shall be defined as the right to use a lot or niche, or
part of a lot, as purchased from the City for burial purposes only, and under the existing and
subsequent regulations as prescribed by the City for such use. Ownership of the right will be
evidenced by a Certificate of Interment issued by the City.
Lots or fractional lots, for which the City has issued Certificates of Interment (known as
lot "cemetery deeds" prior to February 6, 2024), will not thereafter be divided except by consent
of the City. This Certificate of Interment rights conveys only a right to be interred in the
interment space(s) and in no way is any real estate title conveyed to the purchaser. All lots and
niches are exempt from taxation and cannot be seized for debt (except those owed to the
Cemetery) nor can they be mortgaged.
The City shall have the right to assume, at all times, that the lot/niche owner acquired the
lot/niche for the interment of the owner and family members. Unless otherwise directed in
writing and filed with the City Clerk by the owner, devisees, or heirs, the City will permit the
interment of family members at the request of any interested person upon the proof of eligibility
for burial as follows:
a. The surviving spouse of the lot/niche owner shall have the first right to interment
or to direct the right of interment.
b. When there is no surviving spouse, the devisees or heirs of the owner may, by
agreement in writing, determine who among them shall have the right of
interment or direction of interment, which agreement shall be notarized and filed
with the City Clerk.
c. In the event the owner, devisees, or heirs shall not have arranged for future
interment, then the devisees or heirs as the case may be, of such owner, shall have
the right to interment in order of their need.
Only persons whose names appear on the Cemetery records of the City will be
recognized as owners or part owners of lots/niches. In the case of the will, a copy of the will
provided by a law office, a copy filed as part of an estate proceeding, or a similar means that
provides adequate verification of its authenticity, as solely determined by the City, shall be
delivered to the City Clerk before the City will recognize the change in ownership. If the
deceased lot/niche owner left no will, satisfactory proof of descent, as solely determined by the
City, shall be presented.
The Certificate of Interment invests the owner the right to use such lot(s) for burial
purposes only, for themselves, their heirs, or any such person(s) as they may choose to admit,
provided such admission is free of charge and without compensation and in accordance with the
Cemetery Regulations. Lot/niche owners may not resell or transfer their lots/niches or parts of
lots to anyone whomsoever. Transfer of a Certificate of Interment may be made only to the
owner's spouse or children by the surrender of the original Certificate of Interment (or deed) and
issuance of a new Certificate of Interment by the City to the new owners of lots/niches or parts of
lots so transferred. Lot/niche owners desiring to dispose of lots/niche(s) or parts of lots, may
upon surrender of the original Certificates of Interment (or deeds), sell the lots/niche(s) or part of
lots, back to the City for a price not to exceed the original purchase price of the lot/niche. Niches
cannot be repurchased if any engraving has been done.
Certain older lots, no longer usable due to their small size, would have no resale value
and are best left open. Said lots could be used, with the permission of the owners or heirs
thereof, to further the Cemetery beautification plan.
Interment
The funeral director, or person(s) making arrangements, for the interment shall, as soon
as there is knowledge of a pending service, notify the Cemetery staff. Said notification,
including all information pertaining to the gravesite and additional information as required, shall
be provided by the funeral director or person(s) assuming responsibility for the service. Based
on the information given to them, Cemetery staff will locate the exact site and determine the
earliest possible time a service can be held. When definite information for locating the gravesite
is not available, the Cemetery staff will exercise its best judgment in making the location. The
Cemetery assumes no responsibility for any error in such a location.
If a burial permit is required by the Code of Iowa, Section 144.32, no burial will be
allowed until a burial permit is provided to the Cemetery staff.
A charge for opening and closing the grave or niche, as well as the sodding or seeding of
the grave, will be made at a current rate set by the City. The payment of said charge becomes the
responsibility of the individual(s) in charge of interment. The account becomes due upon receipt
2
of a statement issued by the City of Iowa City. Individuals, who make the arrangements, if not a
funeral director, must make payment prior to the grave or niche opening.
Graves shall be dug by Cemetery staff and shall conform to all applicable state laws.
Only Cemetery staff shall open niches.
A member of the Cemetery staff shall be present at every interment or service.
The interment of bodies of persons who have died of a contagious disease shall be in
strict accordance with the rules of the Iowa Department of Health and Human Services.
If a permanent type of outer container is not used for the interment, a special charge will
be levied to cover the extra maintenance required. Said special charge is listed in the Schedule
of Rates and Charges. In areas of Oakland Cemetery established prior to January 1, 2000, the
minimum container used for the interment of an adult body shall be an enclosed container with a
bottom strong enough to support the weight of the body when lifting at each end. Full body
interments made in areas established after January 1, 2000, require a permanent-type container of
concrete or other approved material.
The interment of more than one body in a single casket will not be allowed except in the
case of a parent and infant or two children interred at the same time. The limitation of numbers
of cremated remains allowed in one full body grave space purchased prior to July 1, 1991, is
regulated only by space. Full body adult graves purchased after June 30, 1991, are limited to a
maximum of four cremated remains each and only if planned in advance. In all cases, multiple
interments and/or cremated remains, marker regulations must be observed.
Interments requiring special consideration(s) of utilizing equipment not normally
available to the Cemetery staff could be provided upon request. Adequate time must be allowed
for preparation. Fees and charges must reflect the cost of the extra equipment, time and
materials. Such practices must be arranged by advance notification.
In addition to interment of cremated remains on family lots, there are two areas available
for the interment of single cremated remains and a columbarium for the interment of single
cremated remains. Locations and size restrictions can be obtained from Cemetery staff.
Exceptions to allowing one cremated remains to a single space or niche will be made only in
case of a parent and infant or two children interred at the same time. Only one urn may be
placed in a niche. Cremated remains must be interred or inurned and may not be distributed into
the atmosphere.
Single burial spaces for infants/babies are available in two areas - Babyland with 2' x 4'
spaces and Innocence with 2.5' x 4.5' spaces.
No interments of a body other than that of a human being will be permitted.
Should weather become a factor, or when several burials occur in a one (1) or two (2) day
period, the Cemetery staff shall schedule interments, working in close cooperation with the
3
funeral directors. To avoid conflict, it will be necessary to honor service communications from
the funeral directors according to the time received.
Interments will be scheduled to enter Oakland Cemetery no later than 3:00 p.m. Monday
through Friday, and 1:00 p.m. Saturday. Interments that require work being done other than
during regular work hours Monday through Friday will be charged extra at the current overtime
rate for actual time spent. Interments will not be scheduled after 1:00 p.m. on Saturdays.
Requests for burials outside of designated hours must be approved by the Director of the
Department of Parks and Recreation, or designee. Request will only be approved for unique and
unusual circumstances, as solely determined by the City. No interments will be scheduled on
an official City holiday.
The interment regulations apply to the interment of cremated remains on a lot with a
cremation monument (a monument which is hollow for the purpose of placement of an urn).
Removal(Disinterment)
Removals of bodies from graves in Oakland Cemetery will be done only by the City, in
accordance with the requirements or the statutes of the State and the rules of the Iowa
Department of Health and Human Services. Charges made by the City for removal will be made
in accordance with the difficulty of the work and are payable in advance. The minimum charge
will be equal to twice the current charge for opening a grave of similar size.
Lot owners or their heirs desiring graves opened shall secure the necessary disinterment
permit from the State and deliver it to the Cemetery staff.
Public Lots
Grandview Addition, Lots 60 through 70 and Lots 77 through 78 and Valleyview Lots 53
through 78 and Lots 131 through 156, have now been designated as a burial ground for those
persons for whom no other place is provided. The graves will normally be dug in sequence and
in an orderly fashion except in the case of a requested reservation of a space for a spouse or
sibling(s). The requested reservation shall be made in writing and must be renewed annually. If
the person being interred in the reserved space doesn't meet the requirements for burial assistance
through Johnson County, the space must be purchased at the current rate and the full interment
charge must be paid. The Cemetery staff shall record all interments.
Military Lots
The west one-fourth (W 1/4) of block thirteen (13) of Oakland Cemetery and any
additional space that may be so designated by the Director, or designee, shall be designated as
burial ground for any person who has served in the military and been honorably discharged and
the service member's spouse. Note that as of 2/6/24, the lots available for service members and
4
their spouses are temporarily not identified due to the need for City staff to search and review old
records in this section of block thirteen(13).
Stone and Monument Work
Monument dealers and the purchasers are encouraged to contact the Cemetery office
prior to ordering a monument to check on monument restrictions.
The City of Iowa City does not engage in stone or monument installation or repair;
however, all stone and monument work within Oakland Cemetery shall be subject to the
following regulations and requirements:
All monuments must either be flush with the ground or be at least four inches (4")
in height. The base for all-flush monuments or upright markers must correspond
as closely as possible to the contour of the existing soil surface. No monument
may be installed in such a fashion that it extends beyond the boundaries of the
designated lot or grave, or that will interfere with future grave openings or the
movement of the Cemetery maintenance equipment.
Monuments and/or foundations may not be wider than 65% of the width of the
space or spaces and may not be more than 24" from the front to back.
Monuments may not be larger than the base. By request, exceptions may be made
on larger lots in areas of the Cemetery that were established prior to 1974 or in
areas of the 2001 expansion that will not interfere with the opening of graves or
the movement of equipment.
Polished bases or monuments polished to the ground are not recommended, and
the City of Iowa City or its employees assume no liability for the actual damages
in the performance of normal maintenance operations.
The setting of monuments and the transportation of all tools, materials, etc.,
within the Cemetery grounds shall be subject to the supervision and control of the
Cemetery management. No unnecessary damage to the existing turf will be
allowed, and all debris is to be removed from the Cemetery except soil. Excess
soil must either be removed from the Cemetery or may be placed in the Cemetery
stockpile. It may not be used to fill in low areas or distributed on adjacent lots.
Heavy trucking will not be permitted within the Cemetery when, in the opinion of
the Cemetery management, such work might cause damage to the grounds or
driveways. Once begun, all monument and stone work is to be completed and any
accumulated debris is to be removed from the site within a seven-day period. All
work must be done during regular Cemetery hours of operation, Monday through
Friday, unless by special permission from the Cemetery management.
The local climate is such that marble is not recommended as a suitable material
for monument use. Granite is a much more durable stone. Bronze is an
5
acceptable material. Cemetery management prior to installation must approve
other material.
Only those lot pins set by the City of Iowa City are allowed in areas where
lots/spaces are pinned individually.
Stone work or monuments of any sort, once established in Oakland Cemetery,
may not be removed except by permission of the Cemetery management. Details
concerning monument restrictions for specific areas of Oakland Cemetery are
found in Individual Lot Restrictions.
No cremation monument (a monument which is hollow for the purpose of placement of
an urn) may be installed without prior approval of the City. The opening must have a
lock and a key to the lock must be provided to Cemetery staff. Cemetery staff must be
present at the time the urn is interred and at any time the urn is subsequently removed
from the monument (also known as uninterred) and any time the urn is placed back inside
the monument.
The City reserves the right to approve the design and lettering on a monument and stone.
Design and lettering that are profane, vulgar, or obscene will not be approved and are not
allowed in the cemetery. No design or lettering that promotes or references a controlled
substance will be approved or allowed.
Vaults and Mausoleums
Vaults or mausoleums are not permitted on lots less than 400 square feet and the portion
of the lot occupied by the building shall not exceed 25%. In no case will permission be given to
set the building nearer to the lot line than five (5) feet. Where the vault or mausoleum exceeds
five (5) feet in height, the setback shall be five (5) feet plus one (1) foot for each additional foot
or fraction thereof.
All applications for permits to erect such structures shall be made in writing to the
Cemetery management. Complete plans and specifications of the proposed construction,
including details of materials, workmanship, method of construction, etc., shall accompany such
an application, and the approval of the City of Iowa City shall be obtained before any
construction work is begun. The City of Iowa City reserves the right to prohibit the erection or
any structure that is not considered to be safe, suitable, desirable or appropriate.
Before any vault or mausoleum may be erected, the lot owner shall pay the City an
amount of not less than ten percent (10%) of the cost of the structure. Check, cash, or credit card
is to be made payable to the City of Iowa City and submitted to the Finance Department, and will
be used by the City for the future care and maintenance Of the structure and grounds. Vaults and
mausoleums may be placed only on such lots considered to be appropriate for said purpose by
the Cemetery management.
6
Maintenance Practices
Oakland Cemetery, a non-perpetual care cemetery, assumes all responsibility for the
maintenance of all lots that have been sold or will be sold. All monies previously collected for
perpetual care will be held in a separate trust and interest therefrom will be used to maintain
graves deeded under perpetual care. Landscaping and maintenance of the Cemetery, including
all lots therein, shall be under the direction of the Cemetery staff.
Permission for all permanent plantings must be acquired from the Cemetery staff
Permanent plantings that are planted without permission may be removed without notice.
Generally, it will not be possible to locate evergreen or shrub plantings directly on the gravesite.
In most cases, a nearby location will be designated as part of a group planting to enhance the
entire area.
Existing individual lot plantings may be trimmed or removed by the Cemetery staff when
they have become unsightly or unmanageable. Individual plantings so removed may be
replanted as a part of a group planting.
No hedges, fences, or enclosures of any kind will be permitted on or around lots. Any
objects that are obstructing the general maintenance of the Cemetery shall be removed without
notice. Existing enclosures will be removed when they have deteriorated to an unattractive or
unsafe condition.
Live flowers in plastic or paper mache containers are most welcome and may be used at
all times. Annuals or perennials planted on the graves must be limited to a small area directly
next to the monument and must be mulched and tended by the planter. Plantings must be kept
weed and grass free, and those that are not tended and become unsightly shall be removed
without notice by Cemetery staff Plantings must be on the respective lot and not extend more
then 12" from the monument. The Cemetery staff assumes no responsibility for the preservation,
maintenance, or protection of any type of grave decoration. Plants that must be removed for
grave opening will be set to the side and are the planter's responsibility to replant.
Placement of funeral or special anniversary flowers will be allowed for a period of
approximately five days; after this period, they will be removed. Notification of placement of
special flowers will be given to the Cemetery Superintendent. Artificial wreaths, artificial
flowers, and holiday decorations may be used any time between November 15 to the end of
February and for a period of four (4) days before and five (5) days after Memorial Day. After
that period, if not claimed, they will be removed from the site. The Cemetery staff assumes no
responsibility for lost or stolen articles. The use of flags and emblems may be used for a period
of four (4) days before and five (5) days following Memorial Day, but they will be removed and
stored, without responsibility for preservation, if still in place on the sixth day following
Memorial Day.
All wooden boxes, glass jars and bottles, toys, cans, wired flowers, and other objects that
might create a mowing hazard will not be permitted during the mowing season except as
designated and, when used, will be removed and disposed of by the Cemetery staff without
7
notice. Shepherd's crooks are permitted, but when used they must be placed directly next to the
side of the monument with the crook over the monument. All paintings or decorations placed on
the crook must comply with all Cemetery decoration rules. Exceptions may be made in
Babyland and Innocence sections if approved by the Cemetery management.
The City of Iowa City reserves the right for its staff and other persons to enter upon or
cross over any lot in the Cemetery when deemed necessary to the performance of normal
Cemetery operation.
The City of Iowa City reserves the right to move monuments for the purpose of machine
digging graves. The City of Iowa City assumes the responsibility for resetting the monument in
a timely manner.
The City of Iowa City, its officers, and employees are not responsible for property
damage„ emotional distress, or any other loss suffered by a visitor or lot owner as the result of
the City's operation of the cemetery or for any loss due to vandalism or other acts beyond the
City's reasonable control.
The lot owner should feel free to consult with the Cemetery staff regarding any item or
clarification of the rules and regulations at any time.
Rules for Visitors
Visiting hours for the Cemetery are from 7:30 a.m. to 9:00 p.m. Visitors are requested to
use designated walks and drives and not to trespass unnecessarily on Cemetery lots, pick any
flowers, damage any shrub, tree or plant, or mar or deface any monument, stone or structure in
the Cemetery. The use of materials such as are necessary to produce the art form known as
rubbings or tracings are prohibited on any monument, stone or statuary within the boundary of
Oakland Cemetery.
Controlled use permits are required for all special projects or groups entering the
Cemetery for purposes other than attending funeral services or a grave visitation. Special use
permits are available at the Cemetery office or on the City of Iowa City web page at
www.icgov.org. Arrangements must be made well in advance of need. Filming or videotaping
of funeral proceedings is not allowed without permission from the immediate family.
Brown Street is designated as the entrance and exit for vehicles in Oakland Cemetery.
Vehicles traveling within the Cemetery shall observe the hours of visitation as previously
stated and shall proceed at a rate not to exceed ten (10) miles per hour. Drivers should be aware
at all times of the City's right to alter, change or close alleyways, roadways, and other physical
properties of the Cemetery.
Firearms may not be discharged inside the Cemetery. Blank ammunition may be
discharged at military funerals and military services, such as Memorial Day. Special
8
permission to discharge blank ammunition must be obtained in advance from the Cemetery
Superintendent.
Individual Lot Restrictions
Graceland, lots 1-281, Grandview, Prospect Hill, Fernland, Fairview and all numbered
block sections, except for lots numbered above 92 in block 9 and 108 in block 29, are designated
as having unrestricted monument privileges that permit the installation of both family
monuments and individual grave monuments where the lot area is of sufficient size. The
monument must be placed on solid ground and shall not interfere with future grave openings or
the movement of Cemetery maintenance equipment.
On Graceland Drive, the monument must be on the west for lots 1-110 and lots 160-208.
The monument must be on the east for lots 111-159. Additional monuments, if used, must be
flush with the contour of the existing ground.
Glenview, Cedarview, Sunny Slope, and lots numbered above 92 in block 9 and 108 in
block 29 have flush monuments. Only one monument per grave or a double monument, as for a
married couple, for two adjoining graves is permitted.
Innocence (an infant/baby area) monuments are restricted to 65% of the width of the
space, or 20 inches, and may not be more than 10 inches from front to back. The monument
must be placed at the west end of the lot and placed flush with the contour of the existing soil.
Babyland monuments are restricted to 65% of the width of the space, or 15.6 inches, and
may not be more than 9 inches from front to back. The monument must be placed at the west
end of the lot.
The monument must be on the west end of all lots in Rose Hill, Oak Green, and
Graceland lots 282-331. Foot stones, if used, must be flush with the contour of the existing soil.
Foot stones may be placed at any time on lots that are 12 feet long, but may be placed after burial
only on lots that are 10 feet long.
In the following sections, the Director may designate certain lots as restricted to flush
monuments. Lots restricted to flush monuments will be shown on a map and/or a list available
on the City website. Based on the reasonable needs of the Cemetery, as solely determined by the
Director, the Director may change said designation.
Oak Ridge, Sunrise, Deerview, Forrest Lawn, Oakview, Valleyview, Hickoryview.
Forestview and Cherish Columbarium: The City reserves the right to approve the design
and lettering of any niche face or bud vase. Design and lettering that are not profane, vulgar, or
obscene will not be approved and are not allowed in the cemetery, and no design or lettering that
promotes or references a controlled substance will be approved or allowed. The face of a niche
9
is 12" by 12". All engraving, inscription, lettering, symbols, insignias, etc. are to be cut into the
polished face. No coloring or highlighting is allowed. The lettering for the name and dates shall
be#9 Condensed Roman. Additional sayings must be#20 Vermarco.
Attachments are limited to one small bud vase for cut flowers in the mowing season and
artificial when allowed (see maintenance section of rules). No temporary attachments such as
tape, wire, string or stickers are allowed. All bud vases shall be of the same style, size and color.
Bud vases must be mounted on the right side of the niche and the decorations may not encroach
on adjoining niches.
Fees and Payments
The payment of fees and charges is due when billed by the City. Fees, rates and charges
shall be specified herein or as established by the City Council.
Revised: 5/24 (Resolution No. 24-13
10
Item Number: 6.d.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution establishing a schedule of rates and charges for Oakland Cemetery and rescinding
Resolution No. 24-23.
Prepared By: Susan Dulek, First Ass't. City Attorney
Reviewed By: Geoff Fruin, City Manager
Juli Seydell Johnson, Director of Parks and Recreation
Russ Buffington, Cemetery Supervisor
Fiscal Impact: none
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Resolution
Schedule of Rates and Charges
Executive Summary:
The City Code provides rates and charges for services and burial spaces for Oakland
Cemetery shall be established by resolution of the City Council. When Council updated the
rates and charges in early 2024, rates for cremation monuments (a monument which is
hollow to allow placement of an urn) were not included. This resolution amends the rate
schedule to add a rate for cremation monuments, and there are no other changes to rates
and charges.
Prepared by: Susan Dulek, First Ass't. City Atty,410 E.Washington St., Iowa City, IA 52240; 319/356-5030
Resolution No. 24-133
Resolution establishing a schedule of rates and charges for Oakland
Cemetery and rescinding Resolution No. 24-23.
Whereas, Section 10-7-3 of the Iowa City Code provides rates and charges for services and burial
spaces for Oakland Cemetery shall be established by resolution of the City Council; and
Whereas, City Council adopted a schedule of rates and charges in Resolution No. 24-23, which
did not include fees for cremation monuments; and
Whereas, it is in the public interest to adopt the attached revised schedule of rates and charges
for Oakland Cemetery to include fees for cremation monuments.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. The attached schedule of rates and charges for Oakland Cemetery is adopted.
2. Resolution No. 24-23 is rescinded.
Passed and approved this 21st day of May, 2024.
MaSIAAA- ��'' ?--
Attest: 1 1-i 4:ba
024p. City Clerk 4
Approved By:
L
City Attor y's Office
(Sue Dulek-05/10/2024)
Resolution No. 24-133
Page 2
It was moved by Dunn and seconded by Moe the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Alter
x Bergus
x Dunn
x Harmsen
x Moe
x Salih
x Teague
Rev. 5/21/24
RATES AND CHARGES for
OAKLAND CEMETERY
INTERMENTS
(City residents)
TYPE WEEKDAY SATURDAY
3 pm is the last available time for a 1 pm is the last available time for a
weekday interment Saturday interment
Infant $145.00 $195.00
Youth $450.00 $615.00
Adult $785.00 $1,000.00
Cremation $345.00 $450.00
Columbarium Niches $300.00 $400.00
Cremation Monuments $100.00 $100.00
Non-Resident + 50% + 50%
Disinterment Double the appropriate resident/non-resident weekday charge (minimum).
The fee to return the urn to the cremation monument is$100.00.
NOTE: Interments outside of designated hours must be approved by the Director of
Dept. of Parks and Recreation, and fees are double the weekday rate. No
interments will be scheduled on an official City holiday.
EQUIPMENT AND ADDITIONAL SERVICES
Tent (optional) $110.00 $200.00 $200.00
Lowering Device
(optional) $170.00 $280.00 $280.00
Extra Maintenance -
Adult, No Vault $280.00 N/A N/A
Finder's Fee NC* $95.00 $95.00
Weekday Overtime Actual Cost N/A N/A
LOT SALES
TYPE MONUMENT AREAS FLUSH MARKER AREAS***
Infant N/A $345.00
Youth/Adult $900.00** $900.00 **
Cremains N/A $450.00
Forestview N/A $900.00
Columbarium Niches
Cherish Columbarium N/A Single Niche $900.00
Niches Double (dual) Niche $1550.00
Non-resident + 50% + 50%
* Actual cost when overtime is incurred. This includes when extra staff is required (more
than 3) for an internment.
** Can accommodate up to four cremation interments.
*** Persons purchasing flush markers before 2/6/24 may use above ground monuments for no
extra fee.
Item Number: 6.e.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution approving an agreement with the Downtown District to allow the sale and
possession of beer and wine during the Block Party and Oktoberfest.
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
Executive Summary:
The City Code allows private entities by agreement to sell and their customers to consume
and possess alcohol on public right-of-way under limited circumstances. The Downtown
District would like to be able to sell beer and wine in demarcated areas during the Block Party
on June 22 and Oktoberfest on Sept. 28 and customers to possess beer and wine. This
resolution approves the attached agreement, which is the same agreement as last year. The
demarcated areas for the two events are shown on exhibits to the agreement.
Prepared by:Susan Dulek, First Asst. City Attorney,410 E.Washington St., Iowa City, IA 52240(319)356-5030
Resolution No. 24-134
Resolution approving an agreement with the Downtown District
to allow the sale and possession of beer and wine during the
Block Party and Oktoberfest.
Whereas, section 4-5-3D of the City Code allows private entities by written agreement to sell
and their customers to consume and possess alcohol on public right-of-way under limited
circumstances; and
Whereas, Downtown District would like to be able to sell beer and wine in a demarcated area on
City streets and sidewalks during the Block Party this summer and during Oktoberfest this fall;
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 21st day of May , 2024.
or
Approved by:
Attest:
, City Clerk City Attor y's Office
(Sue Dulek-05/14/2024)
It was moved by Dunn and seconded by Moe the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Alter
x Bergus
x Dunn
x Harmsen
x Moe
x Salih
x Teague
Drafted by: Susan Dave Assl,City Attorney,410 E.WaOtington$L,Iowa Cily,ti‘ 52240:319156,5)20
2024 AGREEMENT
BETWEEN THE CITY OF IOWA CITY AND IOWA CITY DOWNTOWN SELF-
SUPPORTED MUNICIPAL IMPROVEMENT DISTRICT
TO ALLOW THE TEMPORARY AND LIMITED SALE, CONSUMPTION, AND
POSSESSION OF BEER DURING THE BLCOK PARTY AND OKTOBERFEST
This Agreement is made between Iowa City Downtown Setf Supported Municipal
Improvement District, d/b/a Iowa City Downtown District (6Districr) and the City of Iowa
City, a municipal corporation ("City"), in Iowa City, Iowa
WHEREAS, District is an "authorized entity" as that term is defined in section 4-5-
3D of the City Ccide;
WHEREAS. District has applied for a license to sell beer during the Block Party and
Northside Oktoberfest:and
WHEREAS, the parties wish to enter into an agreement to allow District to sell beer
to allow persons to possess and consume beer under limited circumstances on downtown
City streets.
THE PARTIES THEREFORE AGREE AS FOLLOWS:
1. Authorized Site,
a) !lock Party. In consideration for District's promises herein, the City agrees to
allow District control from 4..00 pm to 11:00 pm on June 22, 2024 an area as
shown on the diagram which is attached, marked Exhibit A, and incorporated
herein ('Block Party authorized site") for purposes set forth herein. District
must allow members of the public not participating in the event, to walk
through the authorized site on the sidewalk.
b) Oktoberfest. In consideration for District's promises herein, the City agrees
to allow District control over the area in the 200 300 block of Market Street
and the City parking lot in the 300 block of Market Street on September 28,
2024 from 5:00 am to 10:30 pm as shown on the diagram which is attached,
marked Exhibit B, and incorporated herein ("Oktoberfest authorized site)
with alcohol to be sold and consumed only from 10:00 am to 8:00 pm.
District must allow members of the public not participating in the event to
walk through the Authorized Site on the sidewalk.
2. Term_ This agreement shall be in effect only on June 22. 2024 for the Block
Party and on September 28. 2024 for Oktoberfest.
3. Access, District shall take aft reasonable steps to ensure that only persons over
twenty-one (21) years of age have access to beer and wine,. Said reasonable
steps include, but are not,limited to, ensuring that a) alb persons over twenty-one
(21) years of age shall be provided a wrist band and an approved container upon
purchase of beer or wine; and b) no one may possess an open container of beer
or wine unless it is in an approved container and the person is wearing a wrist
band. Approved container means a glass or cup that is approved by the City
prior to the event. If the District observes anyone in possession of an open
container of beer or wine (or any type of alcohol) that is not in an approved
container or anyone in possession of an approved container with beer or wine
who does not have a wrist, band, the District shall immediately request that the
person pour out the liquid. If the person refuses to do so, the District shall
immediately contact the Iowa City Police Department,
4, License. This agreement is void if District does not have, a license to sell beer
and wine on the Block Party authorized site on June 22, 2024 and on the
Oktoberfest authorized site on September 28, 2024,
5. SaleofBeerNiiine and Alcohol Restrictions. District shall only sell beer and wine
to a person who is over twenty-one (21) years of age. District acknowledges
that the authorized sites are subject to all applicable alcohol restrictions in the
City Code.
6. Advertisement. District 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
and exterior tent walls. 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. District shall be sorely responsible for collecting all debris and
trash from the authorized sites, and the City shall then remove the debris and
trash, If District fails to do so and if City staff has to collect the debris and trash
from the authorized sites, District 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, Ile Smoking.
a) Oktoberfest. Smoking is prohibited in the City parking lot, and District shall
post two no-smoking signs in said lot for Ntobetfest. The signs shalt comply
with Iowa Code Section 1421/6, as amended. Additionally, the use of
electronic cigarettes is prohibited in the parking lot. Electronic cigarette means
vapor product as defined in Section 453A.1 of the Code of Iowa, as amended.
b) Block Party. Smoking is prohibited by City Code in City Plaza, aka the ped
mall, 'but not in the alleys. Smoking is also prohibited by City Code on the
sidewalk to the east of the Iowa City Public Library. Additionally, the use of
electronic cigarettes is prohibited in these two areas. Electronic cigarette
means vapor product as defined in Section 453A.,1 of the Code of Iowa, as
amended.
to. Igipn orazi Toilet Facilities and Hand Washing Stations.
a) Block Party, District shall provide at its sole cost thirty (30) temporary toilet
facilities, including one (1) that is handicap accessible in five (5) locations.
District shall further provide at it sole cost six(6)hand washing stations adjacent to the
facilities unie$$the facilities themselves are equipped with hand washing stations.
Oktoberfest District shall provide at its sole cost sixty (60) temporary toilet
facilities, including two (2) that are handicap accessible, District shall further
provide at its sore cost twelve (12)hand washing stations adjacent to the facilities unless
the facilities themselves are equipped with hand washing stations,
2
_ _
11.Anchoring and Drilling. District 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.
12.Fencing. The authorized site shall be enclosed by fencing as approved by the
City.
a Security, District shall reimburse the City for the costs of an agreed upon
number of officers and supervisory staff at 582.00 per hour per officer and
$100.00 per hour per Sgt. or Lt. from 4:00 pm to 11:00 pm on June 22, 2024 for
the Block Party. District acknowledges the City's preference is for ten (10)
officers to be present, but the number of officers available is dependent on
staffing demands at the time of the Block Party. Supervisory staff will be present
if needed as determined by the City. Payment is due within thirty (30) days of
receipt of an invoice,
14.Insurance.
a) Premises Insurance. On June 22, 2024 and on September 28, 2024,
District shall carry comprehensive general liability insurance for bodily
injury and property damage on the authorized site in the amount of
51,000,000 (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. District shall furnish a copy of a certificate of insurance for same,
satisfactory to the City at the time of execution of this agreement. District
shall notify the City 1 week before cancellation of said insurance,and said
cancellation shall automatically terminate this Agreement.
b) Dram Shop Insurance, On June 22, 2024 and on September 28, 2024,
District 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). District shall provide 1 week notice to the City before
cancellation of said insurance, and said cancellation shall automatically
terminate this Agreement.
c) Governmental Immunities Endorsement, District shall obtain a
governmental immunities endorsement that meets the requirements set
forth on Exhibit C, which is attached and incorporated herein.
15. Indemnification_ District 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 on the authorized site, whether sustained
by any person or person, caused by accident or otherwise and shall defend
at its awn 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 on the authorized site.
16. Non-Discrimination, District 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
3
employment. "Public accommodation" shall include but not be limited to
providing goods, services,facilitieL privileges and advantages to the public.
17. Termination. The City may terminate this agreement upon written notice for
violation of any provision of this agreement.
18. Assignment and Subletting. District shall not assign or sublet this agreement
without prior written approval of the City.
19. Entire Agreement. This constitutes the whole agreement between the parties,
and may be modified in writing only, duly signed by the parties,
Dated, this 21st day of May, 2024.
IOWA CITY AND IOWA CITY DOWNTOWN SELF-SUPPORTED
MUNICIPAL IMPROVEMENT DISTRICT
B : Betsy Potter, Executive Director
THE CITY OF IOWA CITY
--droff F , City Manager
Approved by:
( -d
City Attorney's Office
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EXHIBITC
Governmental Immunities Endorsement
1. Non-waiver of Government Immunity. The insurance carrier expressly agrees and
states that the purchase of this policy and the including of the City of Iowa City, Iowa
as Additional Insured does not waive any of the defenses of governmental immunity
available to the City of Iowa City, Iowa, under Code of Iowa Section 670.4 as it now
exists and as it may be amended from time to time.
2. Claims Coverage. The insurance carrier further agrees that this policy of
insurance shall cover only those claims not subject to the defense of governmental
immunity under the Code of Iowa Section 670.4 as it now exists and as it may be
amended from time to time. Those claims not subject to Code of Iowa Section 670.4
shall be covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunity. The City of Iowa City, Iowa shall be
responsible for asserting any defense of governmental immunity, and may do so at
any time and shall do so upon the timely written request of the insurance carrier.
Nothing contained in this endorsement shall prevent the carrier from asserting the
defense of governmental immunity on behalf of the City of Iowa City.
4. Non-Denial of Coverage. The insurance carrier shall not deny coverage under this
policy and the insurance carrier shall not deny any of the rights and benefits accruing
to the City of Iowa City, Iowa under this policy for reasons of governmental immunity
unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of
governmental immunity asserted by the City of Iowa City, Iowa.
5. No Other Change in Policy. The insurance carrier, the City of Iowa City, Iowa,
agree that the above preservation of governmental immunities shall not otherwise
change or alter the coverage available under the policy.
Item Number: 6.f.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution approving an agreement with Riverside Theatre to allow the sale of wine and beer
under limited circumstances in City Park.
Prepared By: Susan Dulek, First Ass't. City Attorney
Reviewed By: Geoff Fruin, City Manager
Juli Seydell Johnson, Director of Parks and Recreation
Fiscal Impact: none
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Resolution
Agreement
Executive Summary:
The City Code allows non-profit entities by agreement to sell and their patrons to consume
and possess alcohol in a city park and on public right-of-way. Riverside Theatre would like to
be able to sell beer and wine during performances in June and July 2024 in a demarcated
area in and around Riverside Festival Stage in City Park. This resolution approves an
agreement which is the same as last year.
Prepared by:Susan Dulek, First Asst. City Attorney,410 E.Washington St., Iowa City, IA 52240(319)356-5030
Resolution No. 24-135
Resolution approving an agreement with Riverside Theatre to allow
the sale of wine and beer under limited circumstances in City Park.
Whereas, section 4-5-3D of the City Code allows non-profit entities by agreement to sell,
consume, and possess alcohol in a city park, on public right-of-way or on a city ground
excluding public buildings under limited circumstances; and
Whereas, Riverside Theatre would like to be able to sell beer and wine during performances in
June and July 2024 in a demarcated area in and around Riverside Festival Stage in City Park;
and
Whereas, it is in the City of Iowa City's interest to execute the attached agreement.
Now, therefore, be in 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 21st day of May, 2024.
M or
Approved by
Attest:
ae, City Clerk City Attorne s ice
(Sue Dulek-05/10/2024)
It was moved by Dunn and seconded by Moe the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
X Alter
Bergus
X Dunn
Harmsen
Moe
X Salih
X Teague
Drafted by: Susan Dulek,Ass't.City Attorney,410 E.Washington St., Iowa City, IA 52240;319/356-5030
AGREEMENT
BETWEEN THE CITY OF IOWA CITY AND RIVERSIDE THEATRE
TO ALLOW THE TEMPORARY AND LIMITED SALE, CONSUMPTION, AND
POSSESSION OF BEER AND WINE IN CITY PARK
This Agreement is made between Riverside Theatre (hereinafter "Riverside") and
the City of Iowa City, a municipal corporation (hereinafter"City"), in Iowa City, Iowa.
WHEREAS, Riverside is an "authorized entity" as that term is defined in section 4-5-
3D of the City Code;
WHEREAS, Riverside has applied for a license to sell beer and wine for 119 E.
College Street, Iowa City, Iowa and intends to apply to transfer said license to an area in
City Park in and around the Riverside Theatre Festival Stage; and
WHEREAS, the parties wish to enter into an agreement to allow Riverside to sell
beer and wine and to allow persons to possess and consume beer and wine under limited
circumstances in City Park during performances.
THE PARTIES THEREFORE AGREE AS FOLLOWS:
1. Authorized Site. In consideration for Riverside's promises herein, the City
agrees to allow Riverside control over an area south and east of the festival
stage and the seating area as shown on the diagram, which is attached,
marked Exhibit A, and incorporated herein ("authorized site").
2. Term. This agreement shall commence on June 13, 2024 and shall expire on
June 30, 2024.
3. Access. Riverside shall take all reasonable steps to ensure that every person on
the authorized site has a ticket or invitation to that day's event or is an employee
of, an independent contractor of, or volunteer for Riverside and shall exclude any
person who is not.
4. License. This agreement is void if Riverside does not have a license to sell beer
or wine on the authorized site at any time during the period of June 13, 2024
through June 30, 2024.
5. Sale of Beer/Wine. Riverside shall only sell beer or wine to a person who is over
twenty-one (21) years of age and who has a ticket or invitation to that day's
event or is an employee of, an independent contractor of, or a volunteer for
Riverside. Further, Riverside shall only sell beer or wine from 6:00 pm to 10:00
on evenings of events, which weather permitting will be Thursdays through
Sundays.
6. Advertisement. Riverside 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. Notwithstanding any other provision, 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 site without any prior notice to determine
compliance with the terms of this agreement.
8. Debris and Trash. Riverside shall be solely responsible for collecting all debris
and trash from the authorized site, and the City shall then remove the debris and
trash. If Riverside fails to do so and if City staff has to collect the debris and
trash from the authorized site, Riverside 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. Insurance.
a) Premises Insurance. From June 13, 2024 through June 30, 2024,
Riverside shall carry comprehensive general liability insurance for bodily
injury and property damage on the authorized site in the amount of
$1,000,000 (one million dollars) for each occurrence and $2,000,000 (two
million dollars) in the aggregate, shall name the City as an additional
insured, and shall include the Governmental Immunities Endorsement, a
copy of which is attached, marked Exhibit B, and incorporated herein.
Riverside shall furnish a copy of a certificate of insurance for same,
satisfactory to the City at the time of execution of this agreement.
Riverside 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 13, 2024 through June 30, 2024,
Riverside 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). Riverside shall provide thirty (30) days notice to the City
before cancellation of said insurance, and said cancellation shall
automatically terminate this Agreement.
10.Indemnification. Riverside 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 or 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 any claim against the City
arising out of the use of the authorized site or sale, consumption, or possession
of beer or wine on the authorized site.
11.No Smoking. Smoking, including the use of electronic cigarettes, is prohibited
in the authorized site, and Riverside shall post a no-smoking a sign at the front
entrance to the authorized site and two signs inside the authorized site. The
signs shall comply with Iowa Code Section 142D.6, as amended. Electronic
cigarette means vapor product as defined in Section 453A.1 of the Code of
Iowa, as amended.
12. Non-Discrimination. Riverside 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.
2
13. Termination. The City may terminate this agreement upon written notice for
violation of any provision of this agreement.
14. Assignment and Subletting. Riverside shall not assign or sublet this agreement
without prior written approval of the City.
15. Entire Agreement. This constitutes the whole agreement between the parties,
and may be modified in writing only, duly signed by the parties.
Dated, this 21st day of May, 2024.
RIVERSIDE THEATRE
r
A19LC
By: Irena Saric
THE CITY OF IOWA CITY
By: Geoff Fruin, City Manager
Approved by:
City Attorney's Office
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EXHIBIT B
City of Iowa City, Iowa
Governmental Immunities Endorsement
1. Non-waiver of Government Immunity. The insurance carrier expressly agrees
and states that the purchase of this policy and the including of the City of Iowa
City, Iowa as Additional Insured does not waive any of the defenses of
governmental immunity available to the City of Iowa City, Iowa, under Code of
Iowa Section 670.4 as it now exists and as it may be amended from time to
time.
2. Claims Coverage. The insurance carrier further agrees that this policy of
insurance shall cover only those claims not subject to the defense of
governmental immunity under the Code of Iowa Section 670.4 as it now exists
and as it may be amended from time to time. Those claims not subject to
Code of Iowa Section 670.4 shall be covered by the terms and conditions of
this insurance policy.
3. Assertion of Government Immunity. The City of Iowa City, Iowa, shall be
responsible for asserting any defense of governmental immunity, and may do
so at any time and shall do so upon the timely written request of the insurance
carrier. Nothing contained in this endorsement shall prevent the carrier from
asserting the defense of governmental immunity on behalf of the City of Iowa
City.
4. Non-Denial of Coverage. The insurance carrier shall not deny coverage under
this policy and the insurance carrier shall not deny any of the rights and
benefits accruing to the City of Iowa City, Iowa under this policy for reasons of
governmental immunity unless and until a court of competent jurisdiction has
ruled in favor of the defense(s) of governmental immunity asserted by the City
of Iowa City, Iowa.
5. No Other Change in Policy. The insurance carrier, the City of Iowa City, Iowa
agree that the above preservation of governmental immunities shall not
otherwise change or alter the coverage available under the policy.
Item Number: 6.g.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution authorizing the City Manager to sign an agreement with Eide Bailly LLP to provide
consulting services for the Inflation Reduction Act Clean Energy Tax Credit.
Prepared By: Nicole Davies, Finance Director
Reviewed By: Geoff Fruin, City Manager
Fiscal Impact: The contract fee of not to exceed $275,000 will be funded
through V3184 - Wastewater Digester Gas Improvements.
It is currently estimated that the amount of possible Inflation
Reduction Act Clean Energy Tax Credit is $3,8000,000.
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Resolution
Consultant Agreement
Executive Summary:
This agenda item approves the consultant agreement with Eide Bailly LLP for services for the
Inflation Reduction Act Clean Energy Tax Credit related to the Wastewater Digester Gas
Improvements Project.
Background /Analysis:
The current 5 year Capital Improvement Plan includes a $16,800,000 for wastewater digestor
gas improvements. This project is important in helping the City reach our climate action goals
as it will take the gas being released during the digestion process and clean it to be injected
back into the natural gas pipeline. The federal Inflation Reduction Act created several new
clean energy credits and the City believes this project will qualify for the Investment Tax
Credit for Energy Property. This credit ranges from 6% to 30% of qualified costs. The current
estimate of the potential tax credit the City could receive provided by the consultants hired to
design this project is approximately $3,800,000. The design consultants strongly encouraged
the City to hire tax consultants to assist with determining and documenting eligibility to help
ensure that the City can maximize the amount of credit. The City then engaged several CPA
firms in discussion about what services they could provide. Staff determined that Eide Bailly
LLP was the best option to provide these services.
This resolution authorizes the City Manager to execute the agreement with Eide Bailly LLP
and any amendments thereto as needed.
(prc;\
Prepared by: Nicole Davies, Finance Director,410 E.Washington St., Iowa City, IA 52240 (319)356-5085
Resolution No. 24-136
Resolution authorizing the City Manager to sign an agreement with Eide
Bailly LLP to provide consulting services for the Inflation Reduction Act
Clean Energy Tax Credit.
Whereas, Eide Bailly LLP is a regional certified public accounting (CPA) and business advisory
firm and has provided services to municipalities throughout the U.S. for over 100 years; and
Whereas, City staff has negotiated the attached agreement with Eide Bailly LLP for consulting
services for the Inflation Reduction Act(IRA) Clean Energy Tax Credit; and
Whereas, the City's purchasing policy requires City Council to approve consulting services
contracts over$100,000; and
Whereas, it is in the public interest to enter into said Consultant Agreement with Eide Bailly LLP;
and
Whereas, the City expects to expend approximately $275,000 for these services; and
Whereas, funds for this project are available in the Wastewater Digester Gas Improvement
Project Account#V3184.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
The City Manager is authorized to execute the attached Energy Credits & Incentives
Engagement Letter and amendments thereto as needed.
Passed and approved this 21st day of May, 2024.
J2-75A--e---
So
Approved by
Attest:
City Clerk City Attor y Office-05/16/2024
Resolution No. 24-136
Page 2
It was moved by Dunn and seconded by Moe the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
X Dunn
x Harmsen
x Moe
x Salih
Teague
ENERGY CREDITS & INCENTIVES
ENGAGEMENT LETTER
May 14,2024
Iowa City
410 E Washington St
Iowa City, IA 52240
This letter is to confirm and specify the terms of our understanding with Iowa City("you,""your,"or the "City")
and to clarify the nature and extent of the tax consulting services Eide Bailly LLP("Eide Bailly", "we" or"our")
will provide.
SCOPE OF ENGAGEMENT
Consistent with our proposal dated May 1, 2024,
Eide Bailly LLP personnel will provide tax consulting services as requested. Our services will remain advisory in
nature. We cannot act in a capacity equivalent to that of a member of management or of an employee. Decision
making and oversight of services must remain the responsibility of management.
The scope of the consulting services will be to qualify, quantify, document, and assist in claiming amounts
available to the City under Section 48 Energy Credit related to the upgrade to an existing biodigester and
construction of new waste facilities that are planned to begin construction in late 2024. The scope of our
consulting services include:
• Advising management on the existing regulations,the IRA, and any current guidance.
• Educating your architects,engineers,and contractors on the qualifying criteria.
• Evaluating scenarios to monetize potential incentives including rules under Section 6417.
• Modeling and dashboarding the potential incentives.
• Assisting with construction planning to incorporate eligible incentives.
• Advising on prevailing wage and apprenticeship criteria as well as applicable exceptions.
• Advising on the Domestic Content Bonus eligibility.
• Reviewing mapping and census tract data for Energy Community Bonus eligibility.
• Reviewing state and local incentives for renewables and efficiency including but not limited to grants,
rebates, sales tax exemptions, state income tax credits, and property tax incentives.
• Relating energy incentives to your sustainability and environmental initiatives.
• Determination and documentation of construction start date under§48(a)(9)(B)(ii).
• Advising management on the existing regulations,the IRA and current guidance.
• Discussing with architects,engineers, and contractors on the qualifying criteria.
• Advising on scenarios and methods of monetizing incentives including rules under Section 6417, as
applicable.
• Providing provisional assessments throughout the course of the construction project(s),
• Reviewing expenditure request forms, invoices, and other supporting documents,
• Reviewing prevailing wage and apprenticeship language in contracts and bid documents,
1
• Reviewing prevailing wage and apprenticeship data provided by contractors and subcontractors,
• Documenting the related financing terms of the tax-exempt bonds and advising on whether financing
impacts eligible incentives.
• Documenting on the Domestic Content Bonus eligibility.
• Documenting mapping and census tract data for Energy Community Bonus eligibility.
• Assisting with the IRS pre-registration filing requirements related to Section 6417 elections.
• Review of applicable sale agreements
• Cost engineering to determine the appropriate basis of, including treatment of indirect costs under
Section 263A and other applicable code sections, and
• Componentizing functionally interdependent property through our building software to determine basis
amounts of dual use energy property.
• Conducting a property valuation to determine the applicability of the 80/20 Rule for retrofitted
equipment added to qualified facilities.
• Draft proforma IRS forms and applicable election statements to aid in claiming the energy credits.
• Performance of a site visit which will include photographs of qualifying energy property components, if
needed.
• Provide a deliverable report to assist in substantiating the Energy Credit.
Throughout the course of the consulting engagement,we may identify other consulting services and
opportunities. We will discuss with you any such scope under a separate engagement letter.
During the course of the engagement,we will only provide confidential engagement documentation to you via
Eide Bailly's secure portal or other secure methods, and request that you use the same or similar tools in
providing information to us. Should you choose not to utilize secure communication applications,you
acknowledge that such communication contains a risk of the information being made available to unintended
third parties. Similarly, we may communicate with you or your personnel via e-mail or other electronic methods,
and you acknowledge that communication in those mediums contains a risk of misdirected or intercepted
communications.
Should you provide us with remote access to your information technology environment, including but not
limited to your financial reporting system,you agree to(1)assign unique usernames and passwords for use by
our personnel in accessing the system and to provide this information in a secure manner; (2) limit access to
"read only"to prevent any unintentional deletion or alteration of your data; (3) limit access to the areas of your
technology environment necessary to perform the procedures agreed upon; and (4)disable all usernames and
passwords provided to us upon the completion of procedures for which access was provided.We agree to only
access your technology environment to the extent necessary to perform the identified procedures.
We may use third party service providers and/or affiliated entities(including Eide Bailly Shared Services Private
Limited), whether located within or outside the United States, (collectively, "service providers") in order to
facilitate delivering our services to you. Our use of service providers may require access to client information by
the service provider. We will take reasonable precautions to determine that they have the appropriate
procedures in place to prevent the unauthorized release of confidential information to others. We will remain
responsible for the confidentiality of client information accessed by such service provider and any work
performed by such service provider.You acknowledge that your information may be disclosed to such service
providers, including those outside'the United States.
2
It is our policy to keep records related to this engagement for eight years. However,we do not keep any of your
original records,so we will return those to you upon the completion of the engagement.When records are
returned to you, it is your responsibility to retain and protect the records for possible future use, including
potential examination by governmental or regulatory agencies.
By signing this engagement letter,you acknowledge and agree that upon the expiration of the eight-year period,
we are free to destroy our records related to this engagement.
Certain communications involving tax advice are privileged and not subject to disclosure to the IRS. By disclosing
the contents of those communications to anyone,or by turning over information about those communications
to the government,you may be waiving this privilege.To protect this right to privileged communication, please
consult with us or your attorney prior to disclosing any information about our tax advice. Should you decide
that it is appropriate for us to disclose any potentially privileged communication,you agree to provide us with
written, advance authority to make that disclosure.
Should we receive any request for the disclosure of privileged information from any third party, including a
subpoena or IRS summons,we will notify you. In the event you direct us not to make the disclosure,you agree
to hold us harmless from any expenses incurred in defending the privilege, including, by way of illustration only,
our attorney's fees, court costs, outside adviser's costs, or penalties or fines imposed as a result of your
asserting the privilege or your direction to us to assert the privilege.
We will perform our energy tax credit services in accordance with applicable professional standards. However,
you understand and acknowledge that the results of the energy credit services are subject to challenge and
should not be viewed by you as a representation,warranty, or guarantee that the IRS, Iowa Department of
Revenue, or the courts will concur with our advice or conclusions.
Eide Bailly LLP shall not commit any of the following employment practices and agrees to prohibit the following
practices in any subcontracts. (1)To discharge or refuse to hire any individual because of their race, color,
religion,sex, national origin, disability, age, marital status, gender identity, or sexual orientation. (2)To
discriminate against any individual in terms,conditions,or privileges of employment because of their race, color,
religion,sex, national origin, disability, age, marital status,gender identity, or sexual orientation.
TIMELINE
We will begin our procedures upon acceptance of this engagement agreement. We will meet expected
completion dates and deadlines assuming the timely receipt of requested information and the cooperation of
the parties involved. If delays are experienced in receiving information,the delivery of our work will be delayed
accordingly.
FEES
Our fees based on the level of effort needed to calculate, document, and file for the credit. We anticipate that
the work performed under the base services of this engagement letter will range between$225,000 to
$275,000, plus actual out-of-pocket expenses such as travel time, mileage, lodging and meals as well as an
administrative and technology fee of six percent.
Upon execution of this Agreement, you understand and agree that we will invoice you an advance fee totaling
$25,000. We will invoice the any additional amounts on a monthly basis.
3
Our bills are due upon receipt.Should our relationship terminate before our tax consulting services are
completed,you will be billed for services to the date of termination.All bills are payable upon receipt.A finance
charge of 1%per month, which is an annual rate of 12%,will be added to all invoices that remain unpaid for
more than thirty days. If collection action is necessary, expenses and reasonable attorney's fees will be added to
the amount due.
In addition, we will be compensated for any time and expenses, including time and expenses of legal counsel,
we may incur in conducting or responding to discovery requests or participating as a witness or otherwise in any
legal, regulatory, or other proceedings as a result of our Firm's performance of these services.You and your
attorney will receive, if lawful, a copy of every subpoena we are asked to respond to on your behalf and will
have the ability to control the extent of the discovery process to control the costs you may incur.
The ability to effectively and efficiently perform our engagement depends upon the quality of your underlying
records and the timeliness of providing information and responding to our requests.A lack of preparation,
including not providing this information in a complete,accurate and timely manner may result in an increase in
our fees and/or a delay in the completion of our engagement.
We may be requested to make certain engagement documentation available to outside parties, including
regulators, pursuant to authority provided by law or regulation or applicable professional standards. If
requested, access to such engagement documentation will be provided under the supervision of Eide Bailly LLP's
personnel. Furthermore, upon request,we may provide copies of selected engagement documentation to the
outside party,who may intend, or decide,to distribute the copies of information contained therein to others,
including other governmental agencies.
Neither of us may use or disclose the other's confidential information for any purpose except as permitted
under this engagement letter or as otherwise necessary for Eide Bailly to provide the services. Your confidential
information is defined as any information you provide to us that is not available to the public. Our engagement
documentation shall at all times remain the property of Eide Bailly LLP. The confidentiality obligations described
in this paragraph shall supersede and replace any and all prior confidentiality and/or nondisclosure agreements
(NDAs) between us.
Assisting you with your compliance with the Corporate Transparency Act("CTA"), including beneficial ownership
information ("BOI") reporting, if applicable, is not within the scope of this engagement. You have sole
responsibility for your compliance with the CTA, including its BOI reporting requirements and the collection of
relevant ownership information. We shall have no liability resulting from your failure to comply with CTA.
Consider consulting with legal counsel if you have questions regarding the applicability of the CTA's reporting
requirements and issues surrounding the collection of relevant ownership information.
Iowa City accepts responsibility for the results of the services being provided and agrees to perform the
following functions in connection with this engagement:
• Make all management decisions and perform all management functions.
• Designate a competent individual to oversee the services.
• Evaluate the adequacy and results of the services performed.
• Accept responsibility for the results of the services.
• Establish and maintain internal controls, including monitoring ongoing activities.
4
DISPUTE RESOLUTION
In the event of any dispute arising out of or in connection with this agreement(including any dispute regarding
its existence,validity, interpretation, performance, or termination),the parties shall attempt to resolve such
dispute amicably through good faith negotiations. If the parties are unable to resolve the dispute through
negotiation within thirty days, either party may initiate litigation proceedings in a court of competent
jurisdiction.This dispute resolution clause shall not preclude either party from seeking interim injunctive relief
or other equitable remedies from a court of competent jurisdiction.
LIMITED INDEMNITY
Eide Bailly LLP and its partners, affiliates, officers, and employees(collectively"Eide Bailly") shall not be
responsible for any misstatements in the information provided to us to complete our engagement that we may
fail to detect as a result of misrepresentations or concealment of information by any of your owners, directors,
officers or employees. You shall indemnify and hold Eide Bailly harmless from any claims, losses,settlements,
judgments, awards, damages, and attorneys'fees arising from any such misstatement or concealment of
information.
If through no fault of Eide Bailly we are named as a party to a dispute between you and a third party,you shall
indemnify and hold Eide Bailly harmless against any losses, damages, settlements,judgments, awards, and the
costs of litigation (including attorneys'fees)we incur in connection with the dispute.
Eide Bailly shall not be entitled to indemnification under this agreement unless the services were performed in
accordance with professional standards in all material respects.
LIMITATION OF LIABILITY
The exclusive remedy available to you for any alleged loss or damages arising from or related to Eide Bailly's
services or relationship with you shall be the right to pursue claims for actual damages that are directly caused
by Eide Bailly's breach of this agreement or Eide Bailly's violation of applicable professional standards. In no
event shall Eide Bailly's aggregate liability to you exceed ten times fees paid, nor shall Eide Bailly ever be liable to
you for incidental,consequential, punitive, or exemplary damages, or attorneys'fees.
TIME LIMITATION
You may not bring any legal proceeding against Eide Bailly unless it is commenced within forty-eight(48) months
("Limitation Period")after the date when we delivered our report, return, or other deliverable under this
agreement to you, regardless of whether we do other services for you or that may relate to the engagement.
The Limitation Period applies and begins to run even if you have not suffered any damage or loss or have not
become aware of a possible Dispute.
GOVERNING LAW AND VENUE
Any Dispute between us, including any Dispute related to the engagement contemplated by this agreement,
shall be governed by Iowa law. Any unresolved Dispute shall be submitted to a federal or state court located in
Des Moines, Iowa.
5
ASSIGNMENTS PROHIBITED
You shall not assign,sell, barter or transfer any legal rights, causes of actions,claims or disputes you may have
against Eide Bailly to any person.
Please sign and return the attached copy of this letter to indicate your acknowledgment of, and agreement with,
the arrangements for our engagement including our respective responsibilities.
We appreciate the opportunity to be of service to you and look forward to working with you and your staff.
Respectfully,
iy
Joseph O'Neil
Partner, Business Credits&Incentives
***************************************************************
RESPONSE:
This letter correctly sets forth our understanding.
Acknowledged and agreed on behalf of Iowa City by:
Name:
am/
Title: �� �J/ c�
Date: 5/e?/
6
Item Number: 6.11h.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution accepting the work for the storm sewer, sanitary sewer, water main, paving, and
certain sidewalk public improvements for Sycamore Woods — Parts One and Three, and
declaring public improvements open for public access and use.
Prepared By: Josh Slattery, Sr. Engineer
Reviewed By: Jason Havel, City Engineer
Ron Knoche, Public Works Director
Geoff Fruin, City Manager
Fiscal Impact: None
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Engineer's Report
Resolution
Executive Summary:
The construction of the storm sewer, sanitary sewer, water main, paving, and certain
sidewalk public improvements for Sycamore Woods — Parts One and Three have been
completed in substantial accordance with the plans and specifications on file with the
Engineering Division of the City of Iowa City.
Background /Analysis:
Sycamore Woods — Parts One and Three is a 21.52-acre residential subdivision providing 47
lots zoned for attached and detached single family residences. This subdivision consists of
development of the northerly portion of a 34.9-acre subdivision development of townhouses
and single-family homes located south of Highway 6 and east of Sycamore Street in
southeast Iowa City. The Lakeside Addition borders the north, Whispering Meadows
development borders the site to the east, the Sycamore Greenway borders the site to the
west, and crop land and open space to the south.
With this subdivision, Whispering Meadows Drive has been extended west to Sherman Drive.
A short portion of Verbena Drive was also constructed south of its intersection with
Whispering Meadows Drive. In addition to the residential lots, there are two large outlots
which total 13.3 acres. The outlots are conservation areas which include constructed
wetlands and will be maintained by the homeowner's association.
+. y�tanrRp�
CITY OF IOWA CITY
UNESCO CITY OF LITERATURE
ENGINEER'S REPORT 410 East Washington Street
Iowa City, Iowa 52240-1826
319-356-5000 1 www.icgov.org
May 16, 2024
Honorable Mayor and City Council
Iowa City, Iowa
Re: Sycamore Woods — Parts One and Three
Dear Honorable Mayor and Councilpersons:
I hereby certify that the construction of the sanitary sewer, storm sewer, water
main, street paving, and certain sidewalk improvements for Sycamore Woods —
Parts One and Three have been completed in substantial accordance with the
plans and specifications on file with the Engineering Division of the City of Iowa
City. The required maintenance bonds are on file in the City Clerk's Office for
the sanitary sewer, storm sewer, and water main improvements constructed by
Maxwell Construction, Inc. of Iowa City, Iowa and for the paving improvements
constructed by Streb Construction Co., Inc. of Coralville, Iowa.
I recommend that the above-referenced improvements be accepted by the City
of Iowa City.
Sincerely,
Jason Havel, P.E.
City Engineer
Prepared by:Josh Slattery,Engineering Division,410 E.Washington St.,Iowa City, IA 52240(319)356-5149
Resolution No. 24-137
Resolution accepting the work for the storm sewer, sanitary
sewer, water main, paving, and certain sidewalk public
improvements for Sycamore Woods — Parts One and Three, and
declaring public improvements open for public access and use
Whereas, the Engineering Division has certified that the following improvements have been
completed in accordance with the plans and specifications approved by the Engineering Division.
Sanitary sewer, storm sewer, and water main improvements for Sycamore Woods - Parts
One and Three, as constructed by Maxwell Construction, Inc. of Iowa City, Iowa.
Paving improvements for Sycamore Woods - Parts One and Three, as constructed by
Streb Construction Co., Inc. of Coralville, Iowa.
Whereas, the maintenance bonds have been filed in the City Clerk's office; and
Whereas, the City of Iowa City has notified those contractors listed previously of the date on which
it will consider acceptance of the aforementioned public improvements; and
Whereas, the traffic control signs have been installed.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that said
improvements are hereby accepted by the City of Iowa City, Iowa and that all dedications and
public improvements previously set aside as not being open for public access are hereby formally
accepted and declared open for public access and use.
Passed and approved this 21st day of May , 2024.
Ma or
Approv by
Attest: 0(7)Q .
Dep City Clerk City Attor ey's Office
(Sue Dulek-05/16/2024)
It was moved by Dunn and seconded by Moe the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
x Dunn
x Harmsen
x Mae-
x Salih
x Teague
Item Number: 6.i.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution accepting the work for the Hickory Hill Park Shelter and Restrooms Project.
Prepared By: Marri Van Dyke - Civil Engineer
Reviewed By: Jason Havel - City Engineer
Ron Knoche — Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: None
Staff Recommendation: Approval
Attachments: Engineer's Report
Resolution
Executive Summary:
The project has been completed by Rogers Construction, Inc. of Iowa City, Iowa, in
substantial accordance with the plans and specifications. The Engineer's Report and
Performance and Payment bonds are on file with the City Clerk.
Project Estimated Cost: $442,000.00
Project Bid Received: $424,696.25
Project Actual Cost: $431,268.70
Background /Analysis:
This project included replacement of the combined shelter and restroom located at the
Conklin Lane entrance of Hickory Hill Park, which needed to be replaced due to its age and
condition. The new shelter and restroom were split into two separate structures, with the
shelter staying in the same location and the restrooms moving closer to the parking lot. These
improvements were in alignment with the 2016 Hickory Hill Park Master Plan, and the 2017
Park Master Plan.
CITY OF IOWA CITY
UNESCO CITY OF LITERATURE
410 East Washington Street
Iowa City, Iowa 52240-1826
ENGINEER'S REPORT 319-356-5000 1 www.icgov.org
May 15, 2024
City Clerk
Iowa City, Iowa
RE: Hickory Hill Park Shelter and Restrooms Project
Dear City Clerk:
I hereby certify that the Hickory Hill Park Shelter and Restrooms Project has been completed by
Rogers Construction, Inc., of Iowa City, Iowa, in substantial accordance with the plans and
specifications prepared by Snyder &Associates, Inc., of Iowa City, Iowa.
The project was bid as a unit price contract and the final contract price is $431,268.70.
There was a total of one (1) change order for the project as described below:
Concrete footing rebar and upsized sanitary sewer service $4,107.41
1 recommend that the above-referenced improvements be accepted by the City of Iowa City.
Sincerely,
Jason Havel, P.E.
City Engineer
Prepared by: Marri VanDyke,Engineering Division,Public Works,410 E.Washington St.,Iowa City, IA 52240(319)356-5044
Resolution No. 24-138
Resolution accepting the work for the Hickory Hill Park Shelter
and Restrooms Project
Whereas, the Engineering Division has recommended that the work for construction of the Hickory
Hill Park Shelter and Restrooms Project, as included in a contract between the City of Iowa City
and Rogers Construction, Inc. of Iowa City, Iowa, dated June 13, 2023, be accepted; and
Whereas, the Engineer's Report and the performance, payment and maintenance bond have
been filed in the City Clerk's office; and
Whereas, funds for this project are available in the Hickory Hill Park account#R4365; and
Whereas, the final contract price is $431,268.70
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that said
improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 21st day of May , 2024
��Ma
Approved by
Attest: 04
Osy. City Clerk eC )- -.6(.." :1City Attor ey's Office
(Liz Craig—05/15/2024)
It was moved by Dunn and seconded by Moe the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
x Dunn
x Harmsen
x Moe
x Salih
x Teague
Item Number: 6.j.
CITY OF OF IOWA CITY
� fil COUNCIL ACTION REPORT
May 21, 2024
Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a
contract for construction of the Kirkwood Avenue CRANDIC Railroad Crossing Project.
Prepared By: Ethan Yoder — Civil Engineer
Reviewed By: Jason Havel - City Engineer
Ron Knoche - Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: $138,167.00 available in the Pavement Rehabilitation
project fund #S3824
Staff Recommendation: Approval
Attachments: Bid Tab - Kirkwood Ave CRANDIC RR Crossing
Resolution
Executive Summary:
This agenda item awards the Kirkwood Avenue CRANDIC Railroad Project. Four (4) bids
were submitted prior to the May 9, 2024 deadline:
Bidder Name City Bid Amount
Feldman Concrete Dyersville, Iowa $138,167.00
All American Concrete, Inc. West Liberty, Iowa $154,570.00
Boomerang Corp Anamosa, Iowa $159,262.00
Tschiggfrie Excavating Dubuque, Iowa $164,096.90
Engineers Estimate i 1$165,000.00
Staff recommends awarding the contract for the Kirkwood Avenue CRANDIC Railroad
Crossing Project to Feldman Concrete.
Background /Analysis:
CRANDIC Railroad is repairing the railroad crossing on Kirkwood Avenue and is working with
the City to construct the approaches to the crossing. This project generally includes removal
and replacement of pavement, ADA compliant sidewalk and curb ramps, and storm intake
tops replacement.
Project Timeline:
Construction Start — June 2024
Final Completion — September 2024
ep�nawn nmsn� �a wA.n nm e o
oa
Eii Eli
Bid Tally
Kirkwood Avenue CRANDIC Railroad Crossing
Bid Opening_59/2024
Felnm an Concrete - All American Concrete,Inc.- Tschiggfne Exceva5ng,
Engineers Estimate Dye rsville,IA West Liberty,IA Boomerang Corp-Anamosa,IA Dubuque,IA
TOTAL $ 165,000.00 $ 138,167.00 S 154,670.00 $ 159,262.00 $ 164,09fi.90
'Mathematical Error
Prepared by:Ethan Yoder,Engineering Division,410 E.Washington St.,Iowa City,IA 52240(319)356-5145
Resolution No. 74-139
Resolution awarding contract and authorizing the Mayor to sign
and the City Clerk to attest a contract for construction of the
Kirkwood Avenue CRANDIC Railroad Crossing Project
Whereas, Feldman Concrete of Dyersville, Iowa has submitted the lowest responsive, responsible
bid of$138,167.00 for construction of the above-named project; and
Whereas, funds for this project are available in the Pavement Rehabilitation account#S3824.
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 is hereby awarded to
Feldman Concrete, 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 and the City Clerk to attest the contract for
construction of the above-named project, 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 21st day of May , 20 24
Mayor
Approved by
Attest : .�
. `t • City Clerk City Attorn y's Office
(Liz Craig —05/16/2024)
It was moved by Dunn and seconded by Moe the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
x Dunn
x Harmsen
x Moe
x Salih
x Teague
Item Number: 7.a.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution setting a public hearing for June 4, 2024 on an ordinance amending Title 3, entitled
"Finance, Taxation and Fees," Chapter 4, entitled "Schedule of Fees, Rates, Charges, Bonds,
Fines and Penalties" of the City Code to increase or change charges and fees.
Prepared By: Nicole Davies, Finance Director
Reviewed By: Geoff Fruin, City Manager
Fiscal Impact: Adjustments to the low income discount will decrease
revenues annually by approximately $6,500 for both the
Water and Wastewater Funds and $4,100 for the
Stormwater Fund. The $17,100 in lost annual revenue will
be reimbursed by the General Fund.
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Notice of Public Hearing
Utility Fee Draft Ordinance
Utility Fee Resolution
Executive Summary:
The Finance Department requests the City Council set a public hearing for June 4, 2024 to
consider amending Title 3, Chapter 4 of the City Code.
Title 3, Chapter 4 amendments includes changing the low income discount for water and
wastewater user charges from 60 percent to 75 percent of the minimum monthly charge and
for stormwater utility fee from 60 percent to 75 percent of the monthly charge and updating
Section 5 "Solid Waste Disposal" to match the language in Section 3 'Potable Water Use and
Service" on the 10 percent delinquency charge that was approved in October 2020. It was
inadvertently changed back to 5 percent with the utility rate changes set to be approved May
21, 2024.
Background /Analysis:
Title 3, Chapter 4 of the City Code is the "Schedule of Fees. Rates, Charges, Bonds. Fines
and Penalties"
Low Income Discount
On May 7, 2024 during the City Council Work Session, the City Council directed staff to
increase the low income discount for water and wastewater user charges from 60 percent to
75 percent of the minimum monthly charge and the stormwater utility fee from 60 percent to
75 percent of the monthly charge. This will be a decrease in annual revenue for the Water
and Wastewater Funds of approximately $6,500 and approximately $4,100 for the
Stormwater Fund. This annual decrease will be reimbursed by the General Fund for a total
amount of$17,100.
Delinquency Charge on Past Due Bills
In October 2020, the Iowa City City Council approved increasing the delinquency charge on
past due bills from 5% to 10%. Identical language for this charge is located in Sections 3, 4
& 5. In October of 2020, it was only updated in Section 3. In October of 2023, Sections 4 & 5
were updated. Set to be approved on May 21 , 2024, it was inadvertently changed back to 5%
in Section 5. This will update Section 5 back to 10%.
Notice of Public Hearing
Notice is hereby given that a public hearing will
be held at which the Council will consider:
Ordinance amending Title 3, Entitled
"Finances, Taxation and Fees," Chapter 4,
entitled "Schedule of Fees, Rates, Charges,
Bonds, Fines and Penalties," of the City Code
to increase water system, wastewater system
and stormwater low income discount and
increase solid waste disposal charges and
fees.
Copies of the proposed ordinance are on file
for public examination in the office of the City
Clerk, City Hall, 410 E. Washington St., Iowa
City, Iowa. Copies are available by telephoning
the City Clerk at 319/356-5043 or emailing
kgrace(cDiowa-city.org.
The public hearing will be held at 6:00 p.m. on
June 4, 2024, in the Emma J. Harvat Hall, City
Hall, Iowa City. Persons wishing to make their
views known for Council consideration are
encouraged to participate.
Kellie K. Grace, City Clerk
Prepared by: Nicole Davies, Finance Director, 410 E.Washington Street, Iowa City, IA 52240,319-356-5085
Ordinance No.
Ordinance Amending Title 3, Entitled "City Finances, Taxation And Fees,"
Chapter 4, Entitled "Schedule Of Fees, Rates, Charges, Bonds, Fines, And
Penalties"
Whereas, pursuant to Chapter 384, Code of Iowa (2023), the City of Iowa City is authorized to
establish and provide for the collection of rates to pay for the City's utility systems, including the
City's water supply and treatment system, wastewater treatment system, solid waste disposal
services at the municipal landfill, and stormwater system; and
Whereas, the Iowa City City Council proposes to increase the low income discount for water user
charges from 60% to 75% of the minimum monthly charge; and
Whereas, the Iowa City City Council proposes to increase the low income discount for wastewater
user charges from 60% to 75% of the minimum monthly charge; and
Whereas, the Iowa City City Council proposes to increase the low income discount for stormwater
user charges from 60% to 75% of the monthly charge; and
Whereas, the City increased the delinquency charge on current billed portion of the outstanding
amount on combined water and/or sanitary sewer and/or solid waste account that is not paid
within 22 days of billing date from 5% to 10% on October 20, 2020; and
Whereas, the City's City Code was updated for this increase in Title 3, Chapter 4, Section 5,
entitled "Solid Waste Disposal" on October 3, 2023; and
Whereas, the City's City Code was inadvertently updated back to 5% in Title 3, Chapter 4, Section
5, entitled "Solid Waste Disposal" as set to be approved May 21, 2024; and
Whereas, the Iowa City City Council proposes to update City Code for this increase in Title 3,
Chapter 4, Section 5, entitled "Solid Waste Disposal".
Now, therefore, be it ordained by the City Council of the City of Iowa City, Iowa:
Section I. Amendment.
1. Title 3, entitled "City Finances, Taxation, and Fees," Chapter 4, entitled "Schedule of Fees,
Rates, Charges, Bonds, Fines, and Penalties," Section 3, entitled "Potable Water Use and
Service," of the Iowa City Code is hereby amended by deleting it in its entirety and
replacing it as follows:
3-4-3: Potable Water Use and Service:
Description Of Fee,Charge, Bond, Fine Or Penalty Amount Of Fee, Charge, Bond, Fine Or Penalty
Water service charges(see section 16-3A-4 of this Code): Meter Size Charge
(Inches)
For first 100 cubic feet or less of water used, based on '/e,5/e x '/4 $8.78
meter size 3/4 9.59
1 11.29
11/2 22.51
Ordinance No-
Page
o.Pa e 2
2 3027
3 55.95
4 97.57
6 196.34
There will be no minimum monthly charge for a single purpose water meter for the months of November to March if
no water is used.
User charges for water in excess of 100 cubic feet per Monthly Charge Per 100 Cubic Feet
month: Usage
(Cubic Feet)
Dual purpose meters 101 -3,000 $4.09
Over 3,000 2.94
Single purpose meters Over 100 4.09
Other charges and discounts: Charge
Low income discount 75 percent of minimum monthly water charge
Temporary water use (see subsection 16-3A4 B of this
Code):
During construction for the first 90 days from the date Charge Per Month
of the connection to the water main for a new water
service or a maximum of 90 days for reconstruction:
Single-and two-family residences $20.52
Multi-family residences 2052.
Commercial structures 34.19
After 90 days for any structure, until the water meter is 136.72
installed
Charge
Direct purchase of water fee, per 100 gallons or fraction $0.50
thereof(see subsection 16-3A4 C of this Code)
Deposit and delinquency fee for combined City water
and/or sanitary sewer and/or solid waste collection
accounts(see section 16-3A5 of this Code):
Residential owner account 0.00
Residential tenant account 120.00
Commercial account An amount equal to an average 2 month billing for
commercial service for City water and/or sanitary sewer
service,or$120.00,whichever is greater
10 percent delinquency charge on current billed portion of the outstanding amount on combined water and/or
sanitary sewer and/or solid waste account that is not paid within 22 days of billing date. Can be waived once every 12
months
Delinquency deposit fee for combined water and/or An amount equal to an average 2 month billing for the
sanitary sewer and/or solid waste collection accounts (see delinquent account. Can be waived if the account holder
section 16-3A-5 of this Code) enrolls in SurePay
To connect water main extensions, per acre Charge
$539.42
Service Fees
During Normal After Normal
Working Hours Working Hours'
Reconnection of discontinued service $45 $94.48
Posting fee for shutting off water in collection procedure $0 Not done after normal
working hours
Ordinance No-
Page
o.Pa e 3
Frozen water meters $40.13, plus cost of meter $94.48, plus cost of
meter
Shut off water service at curb and check for exterior leaks No charge $94.48, plus hourly
overtime rate beyond 2
hours
Broken or damaged hydrant Repair cost $94.48, plus repair cost
Location of City owned water main for other utilities No charge No charge
Location of City owned water main for private enterprise No charge $94.48, plus hourly
overtime rate beyond 2
hours
Check water meter for accuracy at consumer's request $90.94 Not done after normal
working hours
Annual fire hydrant fee for inspection and operation of fire 107.47 Not done after normal
hydrants which are privately owned or owned by other working hours
government agencies
After hours callout fee for any water work done outside of Not applicable $94.48, plus hourly
normal working hours overtime rate beyond 2
hours
2. Title 3, entitled "City Finances, Taxation, and Fees," Chapter 4, entitled "Schedule of Fees, Rates,
Charges, Bonds, Fines, and Penalties," Section 4, entitled "Wastewater Treatment Works User
Charges," of the Iowa City Code is hereby amended by deleting it in its entirety and replacing it as
follows-
3-4-4: Wastewater Treatment Works User Charges:
Sanitary Sewer Service Charges; Description Of Fee, Amount Of Fee, Charge, Bond, City Code
Charge, Bond, Fine Or Penalty Fine Or Penalty Chapter, Article Or
Section Reference
Minimum monthly charge (includes the first 100 cubic $8.73 16-3A-4
feet of water used)
Monthly charge for each additional 100 cubic feet of 427 16-3A-4
water used
Low income discount 75 percent of monthly minimum 16-3A4
charge
Monthly surcharge:
BOD(per pound) 300 or less MPL' Included in charge for 100 cubic feet 16-3A4
of water used
BOD(per pound)from 301 MPL to 2,000 MPL' $0.305 16-3A4
BOD(per pound) greater than 2,000 MPL' 0.456 16-3A4
Suspended solids(SS)(per pound) 0244 16-3A4
Monthly minimum, unmetered user 35.73 16-3A4
Manufactured housing park, monthly minimum per lot 35.73 16-3A4
Holding tank waste -plus landfill fees 0.035 per gallon 16-3A4
Holding tank waste hauler-annual permit 971.40 per year 16-3A4
Deposit and delinquency fee for combined City water 16-3A-5, 16-3A-7
and/or sanitary sewer and/or solid waste collection
accounts:
Residential owner account, per combined residential 0.00
service for City water and/or sanitary sewer and/or
solid waste collection service
Ordinance No-
Page
o.Pa e 4
Residential tenant account, per combined residential 120.00
service for City water and/or sanitary sewer and/or
solid waste collection service
10 percent delinquency charge on current billed 10.0 percent current billed portion.
portion of the outstanding amount on combined water Can be waived once every 12
and/or sanitary sewer and/or solid waste account that months
is not paid within 22 days of billing date
Delinquency deposit fee for combined City water and/or An amount equal to an average 2- 16-3A-5
sanitary sewer and/or solid waste collection accounts month billing for the delinquent
account. Can be waived if the
account holder enrolls in SurePay
3. Title 3, entitled "City Finances, Taxation, and Fees," Chapter 4, entitled "Schedule of Fees, Rates,
Charges, Bonds, Fines, and Penalties," Section 5, entitled "Solid Waste Disposal," of the Iowa City
Code is hereby amended by deleting it in its entirety and replacing it as follows:
3.4.6: Solid Waste Disposal:
Description Of Fee, Charge, Bond, Fine Or Penalty Charge
Yard waste collection fees:
Per dwelling unit, per month $3.50
Low income discount 75 percent of monthly charge
Untreated wood waste Free
Additional yard waste carts over 1, per month $3.50
Collection of large items fees:
Appliance collection, per Rem collected $20.00
Bulky solid was $20.00 per stop and 1 item; $10.00 per
additional items
Tire collection $3.75 per tire;$7.50 tire and rim
Residential solid waste collection fees:
Curbside household refuse:
Per dwelling unit, per month $14.00
Low income discount 75 percent of monthly charge
Per sticker for each additional bag beyond each units monthly $2.50 each
allotment
Additional refuse carts over 1, per month $14.00 each
Per 2 rooming units, per month (in addition to the dwelling unit 15.90
fees)
Electronic waste TVs or monitors$21.50 per Rem
Curbside recycling:
Per dwelling unit, per month $8.50
Low income discount 75 percent of monthly charge
Iowa City community compost $20.00 per ton, $2.00 minimum
Wood chip mulch No charge
Deposit and delinquency fee combined for City water and/or sanitary
sewer and/or solid waste collection accounts:
Residential owner account, per combined residential service for City $0.00
water and/or sanitary sewer and/or solid waste collection service
Residential tenant account, per combined residential service for 120.00
Ordinance No-
Page
o.Pa e 5
City water and/or sanitary sewer and/or solid waste collection
service
10 percent delinquency charge on current billed portion of the 10 percent current billed portion. Can be
outstanding amount on combined water and/or sanitary sewer waived once every 12 months
and/or solid waste account that is not paid within 22 days of billing
date
Delinquency deposit for combined water and/or sanitary sewer and/or An amount equal to an average 2-month
solid waste collection service billing for the delinquent account. Can be
waived if the account holder enrolls in
SurePay
Special wastes disposal fees:
Disposal of special wastes (except for asbestos containing material 2 times the landfill use fees in this section
and contaminated soils)
Minimum fee 2 times the landfill use fee for 1 ton
Asbestos containing material(ACM):
Nonfriable ACM, from Iowa City premises subject to a Property $100-00tton
Tax and City owned property
Nonfriable ACM,from other locations 105.001ton
Friable ACM, from Iowa City premises subject to a Property 100.001cubic yard
Tax and City owned property
Friable ACM,from other locations 105.001cubic yard
Minimum fee for any regulated ACM 100.00
Contaminated soil: 50.00tton
Minimum fee for contaminated soil 150.00
Disposal of large items fees (see also Collection of large items fees
above):
Appliance disposal fees:
Commercial per item disposed 1.001cubic foot
Residential per Rem disposed $12.50(at landfill scale house)
Tire disposal fee:
Per pound $015
Subject to minimum fee 3.00
Untreated wood waste and yard waste: 24.00/ton
Minimum 2.00
Landfill use fees:
Arriving at the landfill with an unsecured or uncovered load:
First instance in trailing 12 months Warning
Second or subsequent instances in trailing 12 months $50.00
Electronic waste $3.00 per item; TVs or monitors $15.00 per
item
Solid waste from Iowa City premises subject to a Property Tax and
City owned property:
Total landfill fee per ton (includes State fee per ton) $47.50
All other solid waste:
Total landfill fee per ton (includes State fee per ton) $52.50
Minimum fee in lieu of tonnage fees (600 pounds or less):
Solid waste from Iowa City premises subject to a Property Tax $14.00
Ordinance No.
Page 6
and City owned property
All other solid waste $15.00
Title 3, entitled "City Finances, Taxation, and Fees," Chapter 4, entitled "Schedule of Fees, Rates,
Charges, Bonds, Fines, and Penalties," Section 6, entitled "Stormwater Utility Fee," of the Iowa
City Code is hereby amended by deleting it in its entirety and replacing it as follows:
3-4-6: Stormwater Utility Fee:
Description Of Fee, Bond, Charge, Fine Or Penalty Amount Of Fee, Charge, Bond,
Fine Or Penalty
Stormwater utility fee. Users include all users owning or occupying developed 1 equivalent residential unit (ERU) _
property in the City of Iowa City $5.50
Low income discount 75 percent of the monthly charge
Section II. Repealer. All ordinances and parts of ordinances in conflict with the provisions of this
Ordinance are hereby repealed.
Section III. Severability. If any section, provision or part of the Ordinance shall be adjudged to be
invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a
whole or any section, provision or part thereof not adjudged invalid or unconstitutional.
Section IV. Effective Date. This Ordinance shall be in effect on August 1, 2024.
Passed and approved this day of 20
Mayor
Attest:
City Clerk
Approved by
City Attorney's Office
(`
Prepared by:Nicole Davies, Finance Director,410 E.Washington St., Iowa City, IA 52240(319)356-5085
Resolution No. 24-140
Resolution setting a public hearing for July 16, 2024 on an ordinance
amending Title 3, entitled "Finance, Taxation and Fees," Chapter 4, entitled
"Schedule of Fees, Rates, Charges, Bonds, Fines and Penalties" of the City
Code to increase or change charges and fees.
Whereas, pursuant to Chapter 384, Code of Iowa (2023), the City of Iowa City provides certain
utilities, such as potable water use and service, wastewater treatment, solid waste disposal
services, and stormwater; and
Whereas, it is in the public interest to review certain fees and charges associated with said
services; and
Whereas, the Iowa City City Council proposes to increase the low income discount for water user
charges from 60% to 75% of the minimum monthly charge; and
Whereas, the Iowa City City Council proposes to increase the low income discount for wastewater
user charges from 60% to 75% of the minimum monthly charge; and
Whereas, the Iowa City City Council proposes to increase the low income discount for stormwater
user charges from 60% to 75% of the monthly charge; and
Whereas, the City increased the delinquency charge on current billed portion of the outstanding
amount on combined water and/or sanitary sewer and/or solid waste account that is not paid
within 22 days of billing date from 5% to 10% on October 20, 2020; and
Whereas, the City's City Code was updated for this increase in Title 3, Chapter 4, Section 5,
entitled "Solid Waste Disposal" on October 3, 2023; and
Whereas, the City's City Code was inadvertently updated back to 5% in Title 3, Chapter 4, Section
5, entitled "Solid Waste Disposal" as set to be approved May 21, 2024; and
Whereas, the Iowa City City Council proposes to correct said oversight by increasing the
delinquency charge from 5% to 10% in Title 3; Chapter 4, Section 5, entitled "Solid Waste
Disposal"; and
Whereas, the City Code requires that notice and public hearing on proposed changes in rates for
fees and charges for City utilities be provided to the public, prior to enactment of said rates for
fees and charges.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. A public hearing on an ordinance amending Title 3 entitled "Finances, Taxation and Fees,"
Chapter 4 entitled "Schedule of Fees, Rates, Charges, Bonds, Fines and Penalties," of the
City Code to increase the low income discount for water service charges, wastewater
treatment charges and stormwater service charges and to increase solid waste disposal
charges is to be held on the 16th day of July, 2024, 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.
Resolution No. 24-140
Page 2
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.
Passed and approved this 21st day of May , 2024.
or
Approved sy
Attest: z
p , City Cler City Attorne s Office—05/21/2024
Resolution No. 24-140
Page 3
It was moved by Dunn 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
Moe
x Salih
x Teague
e
Prepared by:Nicole Davies, Finance Director,410 E.Washington St., Iowa City, IA 52240(319)356-5085
Resolution No.
Resolu:on setting a public hearing for June 4, 2024 on an ordinance
amendin• Title 3, entitled "Finance, Taxation and Fees," apter 4, entitled
"Schedule of Fees, Rates, Charges, Bonds, Fines and nalties" of the City
Code to inc ease or change charges and fees.
Whereas, pursuant o Chapter 384, Code of Iowa (2023), -e City of Iowa City provides certain
utilities, such as po ble water use and service, wast-! ater treatment, solid waste disposal
services, and stormwa -r; and
Whereas, it is in the pu lic interest to review ce,ain fees and charges associated with said
services; and
Whereas, the Iowa City City ••uncil propose- to increase the low income discount for water user
charges from 60% to 75% of the minimum ►•nthly charge; and
Whereas, the Iowa City City Coun ' pro,,oses to increase the low income discount for wastewater
user charges from 60% to 75% of th_ inimum monthly charge; and
Whereas, the Iowa City City Counc' pr•soses to increase the low income discount for stormwater
user charges from 60% to 75% of he mo thly charge; and
Whereas, the City increased e delinquen,y charge on current billed portion of the outstanding
amount on combined water .nd/or sanitary sewer and/or solid waste account that is not paid
within 22 days of billing data from 5% to 10% • October 20, 2020; and
Whereas, the City's Cit Code was updated fo this increase in Title 3, Chapter 4, Section 5,
entitled "Solid Waste D' posal" on October 3, 202 and
Whereas, the City's r ity Code was inadvertently upd. ed back to 5% in Title 3, Chapter 4, Section
5, entitled "Solid Waste Disposal" as set to be approve May 21, 2024; and
Whereas, the I• a City City Council proposes to co rect said oversight by increasing the
delinquency charge from 5% to 10% in Title 3, Chapt-, 4, Section 5, entitled "Solid Waste
Disposal"; and
Whereas, t City Code requires that notice and public hearing on proposed changes in rates for
fees and arges for City utilities be provided to the public, prit to enactment of said rates for
fees and ' arges.
Now, t -refore, be it resolved by the City Council of the City of Iowa C , Iowa, that:
1. A public hearing on an ordinance amending Title 3 entitled "Financ:s, Taxation and Fees,"
Chapter 4 entitled "Schedule of Fees, Rates, Charges, Bonds, Fines .nd Penalties," of the
City Code to increase the low income discount for water service charges, wastewater
treatment charges and stormwater service charges and to increase solid waste disposal
charges is to be held on the 4th day of June, 2024, 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 lerk is hereby authorized and directed to publish notice of the public hea ' g for
the above amed project in a newspaper published at least once weekly and aving a
general circ lation in the City, not less than four(4) nor more than twenty(20 says before
said hearing.
Passed and approved is day of , 202,.
Mayor
Appr'•ved by
Attest:
•
City Clerk City Attorne '_ ce—_
05/16/2024
Item Number: 7.b.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution setting a public hearing on June 4, 2024 on project manual and estimate of cost for
the construction of the 2024 Water Pavement Patching 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.
Prepared By: Marri Van Dyke — Civil Engineer
Reviewed By: Jason Havel - City Engineer
Ron Knoche — Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: $320,000 available in the Water Divisions Operating
Budget, account#73730130.
Staff Recommendation: Approval
Attachments: Resolution
Executive Summary:
This item begins the process for the 2024 Water Pavement Patching Project, which includes
pavement repairs associated with water main breaks on various streets throughout Iowa City.
Types of pavement that need repaired include portland cement concrete (PCC), PCC with hot
mix asphalt (HMA) overlay, and full depth HMA. Some locations will also require replacement
of driveway, sidewalk, and/or curb and gutter.
Background /Analysis:
On average, there are approximately 60 water main breaks in Iowa City each year. Street
and sidewalk pavement typically need to be replaced following water main repairs. With
limited resources and the emergency nature of the pavement repairs, the City combines the
pavement repairs at multiple main break sites into a single project to more efficiently address
pavement damage resulting from water main breaks. As additional main breaks occur later
this year, those sites will also be added to this project for repair.
Project Timeline:
Set Public Hearing — May 21 , 2024
Hold Public Hearing — June 4, 2024
Bid Letting — June 25, 2024
Award Date — July 16, 2024
Construction — August to November 2024
Prepared by:Marri VanDyke,Engineering Division,410 E.Washington St.,Iowa City,IA 52240,(319)356-5044
Resolution No. 24-141
Resolution setting a public hearing on June 4, 2024 on project
manual and estimate of cost for the construction of the 2024
Water Pavement Patching 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 Water Divisions Operating Budget, account
#73730130.
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 4g' day of June, 2024, 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 21st day of May , 2024
Mayo
Approved by
Attest: adi
R2F City Clerk City Attor y's Office
(Liz Craig —05/15/2024)
It was moved by Dunn and seconded by Moe the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
Dunn
x Harmsen
x Moe
x Salih
x Teague
Item Number: 10.a.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution approving project manual and estimate of cost for the construction of the Asphalt
Resurfacing 2024 Project, establishing amount of bid security to accompany each bid,
directing City Clerk to post notice to bidders, and fixing time and place for receipt of bids.
Prepared By: Marri Van Dyke — Civil Engineer
Reviewed By: Jason Havel - City Engineer
Ron Knoche - Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: $1,350,000 available in the Annual Pavement Management
Account #S3824.
Staff Recommendation: Approval
Attachments: Resolution
Executive Summary:
This item approves the project manual and estimate of the cost for construction of the Asphalt
Resurfacing 2024 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 2024 Project includes work at the following locations:
Asphalt Resurfacing
• Park Road — Rocky Shore Drive to Riverside Drive
• East Benton Street— Gilbert Street to Van Buren Street
Chip Seal
• Taft Avenue — Herbert Hoover Highway to American Legion Road
Project Timeline:
Set Public Hearing — May 7, 2024
Hold Public Hearing — May 21 , 2024
Bid Letting — June 11 , 2024
Award Date — June 18, 2024
Construction — July to November 2024
Prepared by:Marri VanDyke,Engineering Division,410 E.Washington St., Iowa City,IA 52240,(319)356-5044
Resolution No. 24-142
Resolution approving project manual and estimate of cost for the
construction of the Asphalt Resurfacing 2024 Project,
establishing amount of bid security to accompany each bid,
directing City Clerk to post notice to bidders, and fixing time and
place for receipt of bids.
Whereas, notice of public hearing on the project manual and estimate of cost for the above-
named project was published as required by law, and the hearing thereon held; and
Whereas, the City Engineer or designee intends to post notice of the project on the website
owned and maintained by the City of Iowa City; and
Whereas, funds for this project are available in the Annual Pavement Management Account,
account#S3824.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. The project manual and estimate of cost for the above-named project are hereby
approved.
2. The amount of bid security to accompany each bid for the construction of the above-
named project shall be in the amount of 10% (ten percent) of bid payable to City of Iowa
City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated
by the Master Builder of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 11th day of June,
2024. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 6:00 p.m. on the 18th day of June, 2024, or at a special meeting called for that
purpose.
Passed and approved this 21st day of May , 2024.
MaAA-L---4--- LP-[SLA-4---
Approved by
Attest:
t • City Clerk City Attorn 's ffice
(Liz Craig-05/15/2024)
Resolution No. 74-142
Page 2
It was moved by Dunn and seconded by Salih the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
x Dunn
x Harmsen
x Moe
x Salih
x Teague
Item Number: 10.b.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution approving project manual and estimate of cost for the construction of the Landfill
Equipment Building Replacement Project, establishing amount of bid security to accompany
each bid, directing City Clerk to post notice to bidders, and fixing time and place for receipt of
bids.
Prepared By: Joe Welter — Senior Engineer
Reviewed By: Jen Jordan — Resource Management Superintendent
Jason Havel — City Engineer
Ron Knoche — Public Works Director
Geoff Fruin — City Manager
Fiscal Impact: $4,650,000 available in the Landfill Equipment Building
Replacement Account Number L3328
Staff Recommendation: Approval
Attachments: Landfill Equipment - Site Plan
Resolution
Executive Summary:
This agenda item is to approve the project manual and estimate of the cost for the
construction of the Landfill Equipment Building Replacement Project. This project generally
includes demolition of Building B, construction of a new equipment building, and renovations
to the Scale House Building. The new building will include storage bays for equipment and
vehicles, maintenance areas, an interior wash bay, two offices, breakroom, mudroom/locker
room, and restrooms/shower.
Background /Analysis:
At the Landfill, there are two existing buildings, known as Buildings A and B, used for
maintenance and storage of equipment and materials as well as the operator breakroom,
locker room, and restroom. The equipment maintenance and storage building, Building B, is
undersized and the building is in disrepair. Building B will be demolished as part of this
project. Building A will remain.
The Facility Plan, dated June 2023, prepared by Stearns, Conrad and Schmidt, Consulting
Engineers, Inc. (SCS Engineers), discusses planning factors for short, mid-range, and long-
term planning needs at the Landfill. Included in the Facility Plan is the conceptual design of
the proposed new equipment storage building. The replacement building will be a single-
story pre-engineered metal building (PEMB) with approximately 12,100 square feet. The City
will use the building to store heavy equipment and provide finished office, breakroom, and
meeting areas. The new building will include an equipment wash bay, an exterior bulk water
filling station for the public, interior bulk water filling for city staff, connection of the city
potable water system (added by the Melrose/IWV Project) to the Scalehouse Building, and
some renovations to the Scalehouse Building.
9
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Prepared by:Joe Welter,Engineering Division,410 East Washington Street,Iowa City,Iowa 52240,(319)356-5144
Resolution No. 24-143
Resolution approving project manual and estimate of cost for the
construction of the Landfill Equipment Building Replacement
Project, establishing amount of bid security to accompany each
bid, directing City Clerk to post notice to bidders, and fixing time
and place for receipt of bids.
Whereas, notice of public hearing on the project manual and estimate of cost for the above-named
project was published as required by law, and the hearing thereon held; and
Whereas, the City Engineer or designee intends to post notice of the project on the website owned
and maintained by the City of Iowa City; and
Whereas, funds for this project are available in the Landfill Equipment Building Replacement,
Account Number L3328.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. The project manual and estimate of cost for the above-named project are hereby approved.
2. The amount of bid security to accompany each bid for the construction of the above-named
project shall be in the amount of 10% (ten percent)of bid payable to City of Iowa City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated by
the Master Builder of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 12th day of June,
2024. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 6:00 p.m. on the 18th day of June, 2024, or at a special meeting called for that
purpose.
Passed and approved this 21st day of May , 20 24 •
May r
Approved by
.Attest:
$2 • City Clerk City Attor y's Office
(Liz Craig-05/15/2024)
Resolution No. 24-143
Page 2
It was moved by Dunn and seconded by Alter the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
Bergus
x Dunn
x Harmsen
x Moe
x Salih
Teague
Item Number: 10.c.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution approving project manual and estimate of cost for the construction of the Fire
Station 1 Apparatus Bay Slab Reconstruction Project, establishing amount of bid security to
accompany each bid, directing City Clerk to post notice to bidders, and fixing time and place
for receipt of bids.
Prepared By: Ben Clark — Senior Engineer
Reviewed By: Jason Havel — City Engineer
Ron Knoche — Public Works Director
Geoff Fruin — City Manager
Fiscal Impact: $300,000.00 available in the Fire Station 1 Apparatus Bay
Slab Reconstruction account#Z4409 in the City's Storm
Water Fund.
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Resolution
Executive Summary:
This agenda item approves the project manual & estimate of cost for the construction of the
Fire Station 1 Apparatus Bay Slab Reconstruction Project.
Background /Analysis:
The slab in the apparatus bay of Fire Station 1 has deteriorated to the point it needs
replacement. This project includes replacing the front half of the slab with structural concrete,
installing new floor drains and a code required sand/oil separator with connection to the
sanitary system and associated exterior pavement replacement.
Prepared by:Ben Clark,Engineering Division,410 E.Washington St.,Iowa City,IA 52240,(319)356-5436
Resolution No. 24-144
Resolution approving project manual and estimate of cost for the
construction of the Fire Station 1 Apparatus Bay Slab
Reconstruction Project, establishing amount of bid security to
accompany each bid, directing City Clerk to post notice to
bidders, and fixing time and place for receipt of bids.
Whereas, notice of public hearing on the project manual and estimate of cost for the above-
named project was published as required by law, and the hearing thereon held; and
Whereas, the City Engineer or designee intends to post notice of the project on the website
owned and maintained by the City of Iowa City; and
Whereas, funds for this project are available in the Fire Station 1 Apparatus Bay Slab
Reconstruction account#Z4409.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. The project manual and estimate of cost for the above-named project are hereby
approved.
2. The amount of bid security to accompany each bid for the construction of the above-
named project shall be in the amount of 10% (ten percent) of bid payable to City of Iowa
City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated
by the Master Builder of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 12th day of June,
2024. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 6:00 p.m. on the 18th day of June, 2024, or at a special meeting called for that
purpose.
Passed and approved this 21st day of May , 20 24
Mayor 'e.°L3vuz-
Approved by
Attest: ®
vim` City Clerk City Atto ey s Office
(Liz Craig-05/15/2024)
Resolution No. 24-144
Page 2
It was moved by Moe and seconded by Salih the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
X Alter
Bergus
x Dunn
x Harmsen
x Moe
x Salih
x Teague
Item Number: 10.g.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
Resolution selecting City Park Pool Conceptual Design A and authorizing the City Manager to
enter into agreement with Williams Associates Architects, Ltd. to develop plans, specifications,
bidding and construction services for the City Park Pool Replacement Project.
Prepared By: Juli Seydell Johnson, Parks and Recreation Director
Reviewed By: Geoff Fruin, City Manager
Sue Dulek, Assistant City Attorney
Fiscal Impact: Funds for this project will primarily come from the City's
Facility Reserve Fund but will also be supplemented by
other secondary sources including, but not limited to,
General Obligation bonding and internal loans.
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Resolution
2023-040 Iowa City Park Pool_Option A.pdf
City Council correspondence - Lingo
Executive Summary:
This item continues the process to replace the 70+ year old City Park Pool with a new pool at
the same site. City Park Pool Conceptual Design A was identified by staff and project
consultants as the preferred option after an extensive public input and survey process. The
concept design includes six 50 meter lap lanes, a zero-depth entry leisure pool with children's
activities, a separate diving pool with low and high diving boards, a new bath house and a
separate filter building.
Background /Analysis:
The City of Iowa City desires to construct a new City Park Swimming Pool ("City Park Pool
Replacement Project") to provide community recreation and swimming instruction for the
community. Resolution Nos. 23-187 and 23-253 City Council approved a consulting services
agreement with Williams Associates Architects, Ltd. ("project consultants") to provide
conceptual designs for City Park Pool. The project consultant solicited public input through
in-person and on-line open houses, focus groups, and public surveys between October 2023
and March 2024. The results of this process was presented to the City Council and Parks &
Recreation Commission at an informal work session on May 7, 2024.
Based on public input and project goals, City staff recommends moving forward into full
design with City Park Pool Conceptual Design A serving as the foundation for the final
design. Staff further recommends that during the design phase variations to Conceptual
Design A be considered that further the previously established goals of the project outlined in
the May 7, 2024 City Council Work Session and keep the project in line with the $18.39
preliminary cost estimate. Such design variations may include, but are not limited to,
detaching the connected pools, enhancing 25 meter and/or 50 meter lap swimming options
beyond what is illustrated, replacing the current channel with other recreational features for
young swimmers, adjusting pool deck size and accommodations, and making bathhouse and
filter building modifications
l 1
201
-4
110
City Council Supplemental Meeting Packet
CITY OF IOWA CITY May 21, 2024
Information submitted between distribution of packet on Thursday and 4:OOpm on Monday
Late Handout(s):
9•a• Rezoning - 302-316 E Bloomington Street - Local Historic Landmark - See
correspondent ---�
1a.g. City Park Poal - Selection of Conceptual Design A - See correspondence fro
Susan Mellecker
11.1b. Airport Commission - See correspondence from Judith Pfohl
May 21,2024 City of Iowa City
Item Number: 10.g.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 21, 2024
City Park Pool - Selection of Conceptual Design A - See correspondence from Susan
Mellecker
Attachments: correspondence
Ashley Platz
From: Susan Mellecker <susan.mellecker@gmail.com>
Sent: Monday, May 20, 2024 7:36 AM Late Handouts Distributed
To: *City Council;Juli Seydell Johnson;Juli Seydell Johnson
Subject: City Park Pool - please don't forget about short course lap lanes!
S - 20- 2-q
-
A
(Date)
RISH
**This email originated outside of the City of Iowa City email system. Please take extra care opening any links or
attachments. **
Hello!
First, congratulations to Parks and Rec for the great work on the CPP redesign!
That said, PLEASE do not forget or overlook the fact that there are currently no "short course" lap lanes in any of the CPP
redesign options,which was a highly desired and requested feature.Thank you to those counselors who pointed that
out at the last meeting.
While there has been a very vocal group advocating for long course (50 meter) lap lanes,there are many, many, many
people who swam short course at CPP, which is across the deep end of the current pool.
A simple way to accommodate both long and short course lap swimming is to have a mobile bulkhead,similar to what's
at Mercer, added to Design A.This bulkhead could be pushed to one end at certain times of the day(i.e. early mornings
through 12n)to accommodate 50m lap swimming and then moved to the middle for shorter lap swimming. Being able
to essentially cut the lap lane area of the pool in half creates twice the amount of 25m lap swimming area, and/or
creates the opportunity to simultaneously have lap swimming and a multi use area in the pool for water walking,open
swim etc.
If moving a bulkhead every day is not feasible, please push to have short course lanes added somewhere else, such as
the deep end as Juli Johnson discussed at the last meeting.
Just a reminder to please not forget about this important feature as you vote on the design!
Thanks to you all!
Susan Mellecker
1
Item: 10.g
STAFF PRESENTATION TO FOLLOW :
T
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240- 1826
(319) 3S6-5000
(319) 356-5009 FAX
www.icgov.org
t
�' 4 ��Yyl y J♦� �?,.,.'k '�
6 ♦ �T e
CITY PARK POOL
QTY OF IOWA CITY P LA N N I N G
``- - City Park Pool
Design Recommendation
1
May 21, 2024
h.
Fr �'
Project Goals
1. Provide community recreation experiences for a wide range of users.
2. Provide increased independent accessibility to all water experiences.
3. Provide shade in several areas of the deck and some in the water areas.
4. Provide design and operating efficiencies that support the City of Iowa City climate action goals.
5. Maximize efficiency of lifeguards.
6. Promote the vision "Every child learns how to swim."
7. Welcome users of all backgrounds with specific attention to facility entry patterns, shower /
changing and restroom design.
8. Evaluate the potential merging of the outdoor park restrooms and year-round recreation
programming space into the swimming pool facility.
9. Limit the construction area generally within the fence line/site plan of the current pool.
What We Learned
Design Considerations
Preserve Focus Avoid
History Learn to Swim Overlapping
Trees Multigenerational Functions
Open Feel Safety
What We Heard
How We Listened . . .
• 1 . . . . Iunity nput Touchpoints
495 Online Idea Representative Electronic Focus
Idea Generation Generation Focus Group Group
Participants Submissions Participants Submissions
566 Feedback Touchpoints 1,582 Survey Responses
Interest LeveIs of Interest in Pool Design
Each Pool Design
— Random Sample r
d
9
• Most respondents indicated they were OC
interested in seeing Pool Design A (84%)
w
0
• There was also strong interest in Pool
Design B (75%)
a
• Only 23% of residents were interested in
seeing Pool Design D
Pool Design A Pool Design B Pool Design C Pool Design D
Pool Design
■Interested Neither Interested or Uninterested ■Uninterested
Option A
is Recommended
FREE FORM ACTIVITY POOL ATTACHED TO
LAP POOL
• (6) 50-meter lap lanes in 31/2 to 5-foot-deep 1)o
water. Zero Depth entry through activity area STAR TA'R
and integrated accessible stair entry.
Attached organically shaped zero-depth entry
activity pool with depth up to 31/2 feet. Includes
current channel and other bubbler/spray I Po L
features.
Separate deep pool with low and high diving
• boards. Integrated accessible stair entry.
• Estimated 495,600 gallons of water volume
(current City Park pool is 751,575 gallons). This
is 140/b less wat, than the current pool r'
• Maximum Bather Load: 975
Noa,H
• Cost Estimate: $18.39 Million ear..
P�
� srx
STAIR
X
POOL
STAIR
x
x
tl
HW
l llll
"On Deck" Lifeguard Estimates
Light Busy
Open Open
Lap Swim Swim Swim
Current Pool 2-4 7 10-12
Option A 2-3 7 10-14
Option A +2 50 M Lanes 2-4 9 12-15
Option A - Separate Pools 2-3 5 10-12
Current project budget developed
2022 Master
from master plan phase = $1o . 8 _ Plan Concept
million
Concept A preliminary cost
estimate = x18 .39 million
Y '
•
F
♦ iF
m
Projected sources to cover gap : 2024 Concept
• Facilities Reserve Fund Plan
Emergency Reserve Fund
• Internal Loans
Example Items to Consider During Design Phase :
1. Detaching leisure and lap pools
2 . Enhancing 25 meter and/or 50 meter lap swimming
options
3 . Replacing current channel with other recreational
features for young swimmers
4 . Adjusting pool deck size and accommodations
5 . Bathhouse and Filter House modifications
6 . Placement of shade structures
Next Steps
COUNCILAPPROVAL
Arta
DESIGN JUNE 2024 • ,
• Schematic Design
• Design Development
• Construction Documents 4
• Permitting ` :~
BIDDING & CONTRACTS • 2025
• Bid Documents Issued to Potential Bidders
• Pre-Bid Meeting & RFI Responses
• Bids Received & Meetings with Potentially Low Bidders
• Bid Award Recommendations
• Owner/ Contractor Contract
F
CONSTRUCTION APRIL 2025 •
GRAND OPENING MAY 2026
V y
V V
Option A
FREE FORM ACTIVITY POOL ATTACHED TO
LAP POOL
• (6) 50-meter lap lanes in 31/2 to 5-foot-deep
water. Zero Depth entry through activity area °°R
and integrated accessible stair entry. sT�R
• Attached organically shaped zero-depth entry ---
activity pool with depth up to 31/2 feet. Includes
current channel and other bubbler/spray
features.
_ ST IR
• Separate deep pool with low and high diving Sr°
boards. Integrated accessible stair entry. /
• Estimated 495,600 gallons of water volume
(current City Park pool is 751,575 gallons). This
is than the current pool. f=
�cN
• Maximum Bather Load: 975
Cost Estimate: $18.39 Million "°"'"
Option 6 I`
3 SEPARATE POOLS
ZERO DEPTH
• Separate pool with (6) 50-meter lap lanes in
31/2 to 5-foot-deep water. Integrated
accessible sloped entry ramp & stair entry.
• Separate zero-depth entry activity pool with x
PO
° L_
depth up to 31/2 feet. Includes play structure I STAIR w_
and other bubbler/spray features.
o,
• Separate deep pool with low and high diving
boards. Integrated accessible stair entry.
Estimated 458,555 gallons of water volume
(current City Park Pool is 751,575 gallons).
This is 39% less water than the current
pool.
• Maximum bather load: 881
• Cost estimate: $17.94 Million low H.
W1._tl
i
Option C _
"L" SHAPED COMBINED LAP & a
ACTIVITY POOL `
oN
o =
• (6) 50-meter lap lanes in 31/2 to 5-foot-deep a g
water. Zero Depth entry through activity area
and integrated accessible stair entry. _ I—
• Attached rectangular zero-depth entry activity
pool with depth up to 31/2 feet. Includes play
structure and other bubbler/spray features.
• Separate deep pool with low and high diving
boards. Integrated accessible stair entry. -
• Estimated 443,700 gallons of water volumeSOL
(current City Park Pool is 751,575 gallons). This a "
is than the current pool.
• Maximum Bather Load: 825
• Cost Estimate: $17.25 Million °
Option D
REPLACE POOL AND WADING POOL -
w
THE SAME AS CURRENT POOL ` + "
• (1) large pool with separate wading pool.
(9) 50-meter lap lanes with (2) "wings" of `ST"'R
shallow water. Lap Lane depth from 31/2 to
13 feet deep. Diving Area within the lap lane o 0
area. Lap Lanes available during limited "lap p
swim" hours. Open for general swim the
remainder of the day.
• Integrated accessible stair entry at large
pool. No zero-depth entry at large pool. C
Small zero-depth entry at wading pool only.
• Estimated 751,575 gallons of water volume.
This is the same as the current pool.
• Maximum Bather Load: 1,082
LOW HIGH
• Cost Estimate: $19.56 Million ;
1t
r 10 z� <o
J
Comparison Factors
OPTION A OPTION B OPTION C OPTION D
FREE FORM ACTIVITY POOL THREE POOLS "L"SHAPED POOL ORIGINAL
COST $18.39 M $17.94 M $17.25 M $19.56 M
BATHER LOAD 975 881 825 1,082
WATER SAVINGS 34% Less 39% Less 41% Less 751,572 gallons
495,600 gallons 458,555 gallons 443,700 gallons No water savings.
SEPARATE PROGRAM AREAS ✓ ✓ It X
ACCESSIBLE ZERO-DEPTH ENTRY ✓ ✓ ✓ X
CHILDREN ACTIVITY AREA ✓ ✓ ✓ X
25 M LAP LANES X X
Shared Open Swim
50 M LAP LANES 6 Lanes 6 Lanes 6 Lanes 8-9 Lanes
(All 6 for 3-4.5 hrs/day) (All 6 for 3-4.5 hrs/day) (All 6 for 3-4.5 hrs/day) (3-4.5 Hours per Day)
50 M LAP LANES AVAILABLE ALL DAY* 2-3 Lanes All Day* 2-3 Lanes All Day* 2-3 Lanes All Day* X
LOW + HIGH DIVING BOARDS ✓ ✓ ✓ ✓
DECK SPACE FOR CHAIRS + SUNBATHING ✓ ✓ ✓ ✓
ADDITIONAL SHADE ✓ ✓ ✓ ✓
MINIMAL TREE IMPACT ✓ ✓ ✓ ✓
DESIGNED WITHIN CURRENT FENCE LINE ✓ ✓ ✓ ✓
NEW BATHHOUSE + MECHANICAL BUILDING ✓ ✓ ✓ ✓
ADMISSIONS
SPRINKLER
lk ff.
LAPRt--SS LOCKERS,
COMMUNITY
WOMEN ECHMEN
ROOM '"C
NURSING 11, L
AN
JAR
STOR
WENDING
Bathhouse Floor Plan R\
FIRSTAID GOADS,
• Bathhouse design is preliminary and is subject to change.
PbOLMANGI IL I
• Bathhouse plan is the same with all four options.
• Pool mechanical and filtration systems move to a separate building.
• Bathhouse community room is 29'-4"x 25'-0" equaling 773 SF(size of N�TH
small classroom). Ad
o Z 4 iff
STAFF PRESENTATION CONCLUDED
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240-1826
(3 19) 356-5000
(319) 356-5009 FAX
www.icgov.org
Prepared by: Juli Seydell Johnson, Parks & Rec Director, 220 S. Gilbert St., Iowa City, IA 52240;
319/356-5104
Resolution No. 24-145
Resolution selecting City Park Pool Conceptual Design A and
authorizing the City Manager to enter into agreement with
Williams Associates Architects, Ltd. to develop plans,
specifications, bidding and construction services for the City
Park Pool Replacement Project.
Whereas, the City of Iowa City desires to construct a new City Park Swimming Pool ("City
Park Pool Replacement Project")to provide community recreation and swimming
instruction for the community; and
Whereas, in Resolution Nos. 23-187 and 23-253 City Council approved a consulting services
agreement with Williams Associates Architects, Ltd. to provide conceptual designs for City Park
Pool; and
Whereas, City staff and Williams Associates Architects, Ltd. appeared at the May 7, 2024
informal City Council Work Session to review public input including feedback on four conceptual
pool designs; and
Whereas, public input received indicates that City Park Pool Conceptual Design A, illustrated in
the attached Exhibit A, received the highest level of support from the public compared to other
conceptual designs; and
Whereas, Williams Associates Architects, Ltd. has developed a preliminary cost estimate of
$18.39 million for City Park Pool Conceptual Design A; and
Whereas, City staff has recommended moving forward into full design with City Park Pool
Conceptual Design A serving as the foundation for the final design; and
Whereas, funds for this project will primarily come from the City's Facility Reserve fund but will
also be supplemented by other secondary sources including, but not limited to, General
Obligation bonding and internal loans; and
Whereas, during the design phase, it is appropriate for City staff to pursue variations to
Conceptual Design A that further the previously established goals of the project outlined in the
May 7, 2024 City Council Work Session and keep the project in line with the $18.39 preliminary
cost estimate. Such design variations may include, but are not limited to, detaching the
connected pools, enhancing 25 meter and/or 50 meter lap swimming options beyond what is
illustrated, replacing the current channel with other recreational features for young swimmers,
adjusting pool deck size and accommodations, and making bathhouse and filter building
modifications; and
Whereas, City Council has considered the input and needs of the community as well as the
professional recommendations from the consulting team and City staff; and
Resolution No. 24-145
Page 2
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. For purposes of the City Park Pool Replacement Project, which is currently planned for
bid letting in 2025, it is in the best interests of the City of Iowa City to select City Park
Pool Conceptual Design A, with a preliminary cost estimate of$18.39 million, to serve as
a foundation for the final pool design and project budget.
2. Upon the direction of the City Attorney, the City Manager is directed to enter into a
contract with Williams Associates Architects, Ltd. for completion of plans and
specifications, bidding and construction services for the City Park Pool Replacement
Project.
3. During the design phase, City staff may pursue variations to Conceptual Design A that
further the previously established goals of the project outlined in the May 7, 2024 City
Council Work Session and keep the project in line with the $18.39 preliminary cost
estimate. Such design variations may include, but are not limited to, detaching the
connected pools, enhancing 25 meter and/or 50 meter lap swimming options beyond
what is illustrated, replacing the current channel with other recreational features for young
swimmers, adjusting pool deck size and accommodations, and making bathhouse and
filter building modifications.
Passed and approved this _ 21st day of May, 2024.
c
l _
Ma#14)
Attest: 0 1 ° '
City s
Approved By:
•
J
City Attorn 's Office—05/21/2024
Resolution No. 24-145
Page 3
It was moved by Dunn and seconded by Salih the Resolution
be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Alter
x Bergus
x Dunn
x Harmsen
x Moe
x Salih
x Teague
ACCESSIBLE PASSENGER '
LOPDING ZONE
ACCESSIBLE PARKING
ACCESSIBLE ROUTE
E%ISfING PLAYGR00N0
AOMSSIONS \�
BAiHH004(INWDDING MEN'S - - OPTION A-FREE FORMACTIVITYPWL ATTACHE0i0LAP POOL
PNO WOIuEN'S LOCHER ROOM$
9NGLE USER TOILETS PNO �j /f" LANESIN3'ATO 5FOOTDEEP WATER CTIVITAMAADINTEGATE ZERO
910WER ROOM$NIIR9NG
DEPTHENTRYTHROUGH ACRNTYAREAFOR ADEtl1ATE0
ROOM,PDMSSIONS,GOPAO ACCESSIBLE STAR ENTRY.WILL ALLOW FOR AD01➢ONAL LAP SWIM
LOCHER ROOMS,FIRST RIO, - ALL SINCEW LAP LANES PLAN LIKELYBEAVAILABLE DURING
POOL MPNAGER,PNO MOPENSWIMHOOKS.LAP LANESAREOFESS. FORBOiH
WMMINITYRPRTYRWM) SIMMMNG,WATER WPLHING AND AQUA FITNESS.
WMuIONITYRARTYR00M ATTACHED ORGANICALLY SHAPED ZEROLDEPTH ENTRY ACTIVITY
POOL WITH DEPTH OP i0]'A FEET.INCLUDES CURRENT CHANNEL
SINGLE USER TOILETS FOR
AN OTHER BOBBLER5PRAY FEATURES.NOPLAYSTROCTORE
HATH THIS OPTION.
PARK
SEPARATE DEEP POOL WITH LOW AND HIGH DIVING BOARDS.
POOL MANAGER m® • INTEGRATED ACCESSIBLE STAR ENTRY.
W 'w
ESTIMATED 495,600 GALLONS OF WATER VOLUME(CURRE NT CITY
ACTI ITYPOOL WITH ZERO- PAW PARK POOL IS 751,575 GALLONS$THIS IS 34°b LESS WATER THAN
DEPTH ENTRY `\ THE CURRENT POOL.
\ �Ni
WRRENi CHANNEL \\ ''y M MMUMBATHERLOA0:975
MST ESTIMATE:$16.]9 MLLION
LAPPOOL6 LPNE5-SO METERS
1
LAWN
CURRENT CHANNEL:
SHOE STRUCTURES
DEEPPWLWITHIKETERAND3
METER DIVING
FILTER BUILDING
$
IOWA CITY I CITY PARK POOL OPTION A $18.39M ""°"
Kellie Grace
From: Mitch Lingo <mitchlingo@gmail.com>
Sent: Saturday, May 11, 2024 9:53 PM
To: 'City Council
Subject: City Park Pool Redesign
A
**This email originated outside of the City of Iowa City email system. Please take extra care opening any links or
attachments. **
Dear Mayor and Council Members,
After watching the last Iowa City Council work session, I am reaching out to you on what I felt was lacking in the
discussion: ensuring that the City Park Pool remodel provides access and activities for children and early adolescents.
Yes,shocking, I know. A person who has spent their career working for/with children is writing to argue for children.Yes,
Coralville has a pool for families and children.Yes, North Liberty has a pool for families and children. But Iowa City
deserves a pool for families and children, too.
I bring this up because,from watching the meeting,there was a continual focus on lap swimming.This is all good, but IC
has an entire pool at Mercer Park(16 lanes) devoted to lap swimming. Even the redesign of Mercer Park Pool focuses
on providing more activities for older Gen-Xers, Baby Boomers, and the Silent Generation. In a neighborhood full of
children, nothing in the Mercer Park redesign increases pool access for children. Kids under five can only use the lower-
depth pool with a life jacket. Lee provides six lanes, and UI provides 16 lanes. How many lap lanes are needed in our
community for lap lanes to be the main focus of questions and comments on the City Park Pool?
I understand you are working with finite resources, but adults have two public pools focused on them and their
swimming habits.Additionally,one of those pools will expand and focus more on adult swimming habits. Let the
children have an accessible pool to meet their needs by maximizing the space for children to tweens and providing an
interactive play structure for the littler. And, if people find the pool noisier(I am still saddened by that comment during
the meeting from a citizen representative for Parks and Recreation)and I cannot hear the person I am trying to talk to?
Good.That means the City Park Pool is having its intended consequence of children interacting with each other, having
fun, and building a lifelong love for the water.
The only way we can have a quiet pool is not to have children at the pool.That is a value I am unwilling to accept out of
Iowa City.
Thank you for your service and have a good Sunday,
Mitch Lingo
t