HomeMy WebLinkAbout2025-05-20 ResolutionItem Number: 5.c.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution approving applications for retail tobacco, tobacco products, alternative nicotine
products, vapor products, and device retailer permits, as required by Iowa Code 453A.47A
and Iowa Code 453E.3.
Reviewed By: Geoff Fruin, City Manager
Jennifer Schwickerath, Assistant City Attorney
Fiscal Impact: N/A
Staff Recommendation: Approval
Attachments: Resolution
Executive Summary:
Pursuant to Iowa Code §453A.47A, a retail permit is required to sell tobacco, tobacco
products, alternative nicotine products, or vapor products at any place of business or through
delivery sales. All permits provided for in Iowa Code §453A.47A expire on June 30 of each
year and require payment of the applicable fee established in Iowa Code §453A.47A(7). The
Iowa Department of Revenue implements the retail permit requirements of Iowa Code
§453A.47A. The City Clerk's Office issues all permits for retailers located within city limits. As
part of the retail permit process, the Iowa Department of Revenue requires applications be
approved by the City Council once the City receives the completed application and the
appropriate fee is paid.
Background / Analysis:
During the 2024 legislative session, the Iowa legislature enacted Iowa Code §453E.3, which
regulates and taxes the sale of devices effective January 1, 2025. Per the legislation, a
"device" is defined as any equipment or product, made in whole or in part of glass or metal,
that is designed for use in inhaling through combustion tobacco, hemp, other plant materials,
or a controlled substance. A device retailer shall only display and sell devices in a location of
a retail outlet where the device retailer ensures that the devices are not visible to a person
younger than twenty-one years of age and where no person younger than twenty-one years
of age is present or permitted to enter at any time. Based on this legislation, we have
included 'device' in the permit approval resolution and will indicate the permit type for which
each business has applied.
Prepared by: Wendy Mayer, License Specialist, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5042
Resolution Number: 25-109
Resolution approving applications for retail tobacco, tobacco
products, alternative nicotine products, vapor products, and device
retailer permits, as required by Iowa Code 453A.47A and Iowa Code
453E.3.
Whereas, applications for Tobaccolfobacco Products/Alternative Nicotine Products/
Vapor Products/Device Retail permits have been submitted and filed with the City Clerk;
and
Whereas, the applicants have fled the proper application and fees as required by the
Iowa Department of Revenue; and
Whereas, applications are presented to City Council for approval.
Now, Therefore, be it Resolved by The City Council of Iowa City, Iowa, That:
Section 1. The City Clerk is hereby authorized and directed to issue a permit to the
following named applicants and locations to sell the following products:
Effective from: May 21, 2025 to June 30, 2025.
Business Name
Business Address
Permit T
e
Hawks Mighty Mart
1504 E. Burlington St.
Tobacco Permit
Passed and approved this 20th day of
2025
Mayor Pro Tat
Approved by
i
Attest:
Deputy City CIW City Attomey's Ice
(Jennifer Schwickerath - 05/15/2025)
Resolution No. 25-109
Page No. 2
It was moved by Moe , and seconded by Harmsen that the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x Alter
x
Bergus
x
Harmsen
x
Moe
X
Salih
x
Teague
x
Weilein
Item Number: 6.a.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
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: Jacklyn Fleagle, Assistant Finance Director
Reviewed By: Nicole Davies, Finance Director
Geoff Fruin, City Manager
Fiscal Impact: Adopted as part of the FY2025 Revised Budget and 2025-
2029 Capital Improvement Program
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Agreement Relating to Paying Agency, Registrar and Transfer Agency
Resolution
Executive Summary:
On the May 20 City Council agenda, there are two separate resolutions for the City Council to
consider in order to complete the sale of the 2025 General Obligation Bonds. The first
resolution appoints US Bank as the registrar and paying agent for the 2025 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 2025 General Obligation Bonds. The resolution
also amends the tax levy requirements needed for the repayment of the bonds.
Background / Analysis:
On May 6, 2025, the City opened bids for the 2025 General Obligation Bonds at a par
amount of $14,535,000.
The City received ten bids on the 2025 General Obligation Bonds from Jefferies LLC,
Huntington Securities, Inc., Robert W. Baird & Company, KeyBanc Capital Markets, Inc.,
Piper Sandler & Company, Raymond James & Associates, Inc., BOK Financial Securities,
Inc., Hilltop Securities Inc., UBS Financial Services Inc., and The Baker Group LP. The
lowest true interest rate bid was received from Jefferies LLC of New York, New York at
3.393698% and a price of $15,617,566.27. The 2025 General Obligation Bonds are 10-year
bonds that mature in 2035.
AGREEMENT RELATING TO PAYING AGENCY, REGISTRAR AND
TRANSFER AGENCY
THIS PAYING AGENT/BOND REGISTRAR AGREEMENT (this "Agreement"), is entered into as of June
3, 2025 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 2025A (the "Bonds") in an aggregate principal amount of $14,535,000 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 prep um (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:
Del t tioxa o Terrns. Tire terms "item", "receipt", "transfei", "tur-naround", "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. Ar pointment anO a_ cce . 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. gpj gnu; sat�.oa°�. 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 A ot;,__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 DgLs 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 olmBonds. 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 Brands. All Bonds surrendered for payment, redemption, transfer, exchange, or
replacement, if surrenderedto the Bank, shall be promptly cancelled by it and, if surrendered to the Issuer, shall be
deliverers to the Bank and, if not already cancelled, shall be promptly, cancelled by the Bank. The Issuer may at any tinge
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, Los
t _5,tolen r jjgstro „ed Boards. 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 forthabove.
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. Reluapc on Documents, De. (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 thelssuer.
(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 dutieshereunder
(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.
(0 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. Mone Held_hy Bad. 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 Band and remaining unclaimed, by the Registered Owner (or by the Issuer (which claim by the
Issuer shall be made in writing) after mattuit:y 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. TpterpLl ex. 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. Assi m-Anent, °Ihs Agreement may not be assigned by either party without the prior written consent
of the other party.
Section 6.03. Notices. .es. 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
111 Filmore Ave East
St. Paul, MN 55107
Facsimile: 651-466-7431
Section 6.04. Effect o%` jcad . The Article and Section headings herein are for convenience of reference only
and shall not affect the construction hereof.
Section 6.05. Successors and , sisi as. ,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. Severabili.tyIf any provision of this Agreement shall be detemuned 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 Agpcement. ;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. Lion. 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. Qovemipg L w. "Phis Agreement shall be construed in accordance with and shall be governed by
the laws of the State of Iowa.
Section 6.12. Docw-nents to be .17 led 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 c piuiion of
Registrar,
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 6.1 , rtricot t aorta Hance. To Delp the government fight the funding of terrorism aid 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 Rea:.o_rds. Issuer or its duly authorized agents may examine all records relating
to the Obligations atthe principal office of the Agent at reasonable times as agreed upon with the Agent and such.
records shark 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, lowa, Issuer
By:
Print Name: ``Mazahir Salih
Title: Mayor Pro Tem
U.S. BANK NATIONAL ASSOCIATION, as
Paying Agent, Registrar and Transfer Agent
I0
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 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 financial statements,
licenses, identification and authorization documents from individuals claiming authority to represent the entity or the
entity or other relevant documentation.
4914-0240-8256-1 \1 0714-151
May 20, 2025
The City Council of the City of Iowa City, State of Iowa, met in regular
session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at
6:00 P .M., on the above date. There were present Mayor Pro are Salih in
the chair, and the following named Council Members:
Ber us Harmsern Moe Salih, Tea ue, Weilein
Absent: Alter
Vacant:
None
2
Council Member 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
Harmsen seconded the motion to adopt. The roll was called and the vote was,
Ayes: Bergus, Harmsen, Moe, Salih, Teague, Weilein
Nays:
None
Absent: Alter
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution No. 25-110
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, $14,535,000 General Obligation Bonds, Series 2025A, dated June 3, 2025,
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 $14,535,000 General Obligation Bonds, Series 2025A, dated June 3, 2025.
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 201h day of May, 2025,
Attest:
I ' ) kce
City Clerk
Item Number: 6.b.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution Authorizing and Providing for the Issuance of $14,535,000 General Obligation
Bonds, Series 2025, and Levying a Tax to Pay Said Bonds; Approval of the Tax Exemption
Certificate and Continuing Disclosure Certificate.
Prepared By: Jacklyn Fleagle, Assistant Finance Director
Reviewed By: Nicole Davies, Finance Director
Geoff Fruin, City Manager
Fiscal Impact: Adopted as part of the FY2025 Revised Budget and 2025-
2029 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
Executive Summary:
On the May 20th City Council agenda, there are two separate resolutions for the City Council
to consider in order to complete the sale of the 2025 General Obligation Bonds. The first
resolution appoints US Bank as the registrar and paying agent for the 2025 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 2025 General Obligation Bonds. The resolution
also amends the tax levy requirements needed for the repayment of the bonds.
Background / Analysis:
On May 6, 2025, the City opened bids for the 2025 General Obligation Bonds at a par
amount of $14,535,000.
The City received ten bids on the 2025 General Obligation Bonds from Jefferies LLC,
Huntington Securities, Inc., Robert W. Baird & Company, KeyBanc Capital Markets, Inc.,
Piper Sandler & Company, Raymond James & Associates, Inc., BOK Financial Securities,
Inc., Hilltop Securities Inc., UBS Financial Services Inc., and The Baker Group LP. The
lowest true interest rate bid was received from Jefferies LLC of New York, New York at
3.393698% and a price of $15,617,566.27. The 2025 General Obligation Bonds are 10-year
bonds that mature in 2035.
Tax Exemption Certificate
of
City of Iowa City, County of Johnson, State of Iowa, Issuer
$14,535,000 General Obligation Bonds, Series 2025A
This instrument was prepared by:
Ahlers & Cooney, P.C.
100 Court Avenue, Suite 600
Des Moines, Iowa 50309
(515) 243-7611
Table of Contents
This Table of Contents is not a part of this Tax Exemption Certificate and is provided
only for convenience of reference.
Introduction
ARTICLE I Definitions
ARTICLE II Specific Certifications, Representations And Agreements
Section 2.1
Authority to Certify and Expectations
Section 2.2
Receipts and Expenditures of Sale Proceeds
Section 2.3
Purpose of Bonds
Section 2.4
Facts Supporting Tax -Exemption Classification
Section 2.5
Facts Supporting Temporary Periods for Proceeds
Section 2.6
Resolution Funds at Restricted or Unrestricted Yield
Section 2.7
Pertaining to Yields
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
EXHIBITA Issue Price Certificate....................................................................21
EXHIBIT B Municipal Advisors' Certificate........................................................25
2
Tax Exemption Certificate
City of Iowa City, State of Iowa
This Tax Exemption Certificate made and entered into on June 3, 2025, 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 $14,535,000 General Obligation Bonds, Series 2025A (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.
0 "Annual Debt Service" means the principal of and interest on the Bonds
scheduled to be paid during a given Bond Year.
a "Bonds" means the $14,535,000 aggregate principal amount of General
Obligation Bonds, Series 2025A, of the Issuer issued in registered form pursuant to the
Resolution.
0 "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.
"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.
2
• "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 $15,630,818.85, 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; the acquisition, construction and improvement of
works and facilities useful for the collection and disposal of surface waters and streams,
and for the protection of property situated within the corporate limits from floods or high
waters, and for the protection of property from the effects of flood waters; equipping the
fire department; 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 a swimming
pool, park and related facilities; the acquisition, construction, improvement and
equipping of recreational grounds and buildings, parks and the acquisition of real estate
therefor; the acquisition, reconstruction, improvement and equipping of fire stations,
pools, recreation centers, community centers and City Hall 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 Jefferies LLC of New York, New York, constituting
the initial purchasers of the Bonds from the Issuer.
Certificate.
"Rebate Amount" means the amount computed as described in this
"Rebate Fund" means the fund to be created, if necessary, pursuant to this
Certificate.
• "Rebate Payment Date" means a date chosen by the Issuer which is not
more than 60 days following each Computation Date or the Final Bond Retirement Date.
• "Regulations" means the Income Tax Regulations, amendments and
successor provisions promulgated by the Department of the Treasury under Sections 103,
148 and 149 of the Code, or other Sections of the Code relating to "arbitrage bonds",
including without limitation Regulations 1.148-1 through 1.148-11, 1.149(b)-1, 1.149-
d(1), 1.150-1 and 1.150-2.
• "Replacement Proceeds" include, but are not limited to, sinking funds,
amounts that are pledged as security for an issue, and amounts that are replaced because
of a sufficiently direct nexus to a governmental purpose of an issue.
• "Resolution" means the resolution of the Issuer adopted on May 20, 2025,
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.
rol
ARTICLE II
Specific Certifications, Representations
And Agreements
The Issuer hereby certifies, represents and agrees as follows:
Section II.1 ut errity to Cert d E ec tions
(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 1,14-2(b)(2) o'fthe 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, ()
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()(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
7
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
Forma 8038-G, Information Return for Tax -Exempt Goverrinmental Obligations with
respect to the Bonds and such other reports required to comply with the Code and
applicable Regulations.
(i) The Issuer will take no action which would cause the Bonds to become
°'"private activity bonds" as defined in Section 1.41 (ai) 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 Bend 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 there to be "arbitrage bonds" as defined in Section 148(a) of the
Code. The Issuer does not expect that the Proceeds o f 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
E:3
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.
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 I1.2 Receipts and Expenditures of Sale Proceeds
Sale Proceeds (par plus re -offering premium of $1,095,818.85), less underwriter's
discount of $13,252.58, received at Closing are expected to be deposited and expended as
follows:
(a) $84,365.00 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) $15,533,201.27 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 PuKposc 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; the acquisition, construction and improvement of works and facilities useful
for the collection and disposal of surface waters and streams, and for the protection of property
situated within the corporate limits from floods or high waters, and for the protection of property
from the effects of flood waters; equipping the fire department; 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 a swimming pool, park and related facilities; the acquisition, construction,
improvement and equipping of recreational grounds and buildings, parks and the acquisition of
real estate therefor; the acquisition, reconstruction, improvement and equipping of fire stations,
pools, recreation centers, community centers and City Hall.
E
Section II.4 .Facts Suppo tin rax-Pxern tion Classification
Govemmental Bonds
Private Business LTsefPrivate Securit car rent 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
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. Financn Test
No amount of Proceeds of the Bonds is to be used directly or indirectly to make or
finance loans to persons other than governmental units.
Section II.S Facts Sup r rtin TejnvqKqDLRpfigkfor Proceeds
(a) 'rime 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
10
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
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 I'etamirt tio; "Melds
(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 aver 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.
11
(c) The Bond Yield has been computed as not less than 3.218713 percent.
This Bond Yield has been computed on the basis of a purchase price for the Bonds equal
to the Issue Price.
Section I1.8 ReimburserneLit 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.
(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. 1 50-2(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.
12
(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.
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 Flnd
(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 Exce tion 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 relate exception(s) is as follows:
13
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:
15 percent spent within six months of the Closing Date;
2) 60 percent spent within one year of the Closing Date;
3) 100 percent spent within eighteen months of the Closing Date (subject to 5
percent retainage for not more than one year).
In any event, the Issuer expects that the 5% reasonable retainage will be spent within 30 months
of the Closing Date. For purposes of determining compliance with the six-month and twelve-
month spending periods, the amount of investment earnings included shall be based on the
Issuer's reasonable expectations that the average annual interest rate on investments will be not
more than 6%. For purposes of determining compliance with the eighteen -month spending
period, the amount of investment earnings included shall be based on actual earnings. If the
Issuer fails to meet the foregoing expenditure schedule, the Issuer shall comply with the arbitrage
rebate requirements of the Code.
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(h)(i)(3) of the Regulations, the Issuer shall calculate the
amount of future earnings to be used in determining compliance with the first three spending
periods based on its reasonable expectations that the average annual interest rate on investments
14
of the ACP will be not more than 5%. Compliance with the final spending period shall be
calculated using actual earnings.
If the Issuer fails to meet the foregoing expenditure schedule, the Issuer shall comply
with the arbitrage rebate requirements of the Code.
Section IIIA Calculation of Rebate Amount
(a) As soon after each Computation Date as practicable, the Issuer shall, if
necessary, calculate and determine the Excess Earnings on the Gross Proceeds Funds (the
"Rebate Amount"). All calculations and determinations with respect to the Rebate
Amount will be made on the basis of actual facts as of the Computation Date and
reasonable expectations as to future events.
(b) If the Rebate Amount exceeds the amount currently on deposit in the
Rebate Fund, the Issuer may deposit an amount in the Rebate Fund such that the balance
in the Rebate Fund after such deposit equals the Rebate Amount. If the amount in the
Rebate Fund exceeds the Rebate Amount, the Issuer may withdraw such excess amount
provided that such withdrawal can be made from amounts originally transferred to the
Rebate Fund and not from earnings thereon, which may not be transferred, and only if
such withdrawal may be made without liquidating investments at a loss.
Section II1.5 Rebate Reg uirernents and the Bond Fund
It is expected that the Bond Fund described in the Resolution and Section 2.6(c) of this
Certificate will be treated as a bona fide debt service fund as defined in Regulation 1.148-1(b).
As such, any amount earned during a Bond Year on the Bond Fund and amounts earned on such
amounts, if allocated to the Bond Fund, will not be taken into account in calculating the Rebate
Amount for the reasons outlined in Section 2.6(c) hereof. However, should the Bond Fund cease
to be treated as a bona fide debt service fund, the Bond Fund will become subject to the rebate
requirements set forth in Section 3.4 hereof.
Section III.6 Investment of the Rebate Fund
(a) Immediately upon a transfer to the Rebate Fund, the Issuer may invest all
amounts in the Rebate Fund not already invested and held in the Rebate Fund, to the
extent possible, in (1) SLGS, such investments to be made at a yield of not more than
one -eighth of one percent above the Bond Yield, (2) Tax Exempt Obligations, (3) direct
obligations of the United States or (4) certificates of deposit of any bank or savings and
loan association. All investments in the Rebate Fund shall be made to mature not later
than the next Rebate Payment Date.
(b) If the Issuer invests in SLGS, the Issuer shall file timely subscription
forms for such securities (if required). To the extent possible, amounts received from
maturing SLGS shall be reinvested immediately in zero yield SLGS maturing on or
before the next Rebate Payment Date.
15
Section III.7 Pavment to the United States
(a) On each Rebate Payment Date, the Issuer will pay to the United States at
least ninety percent (90%) of the Rebate Amount less a computation credit of $1,000 per
Bond Year for which the payment is made.
(b) The Issuer will pay to the United States not later than sixty (60) days after
the Final Bond Retirement Date all the rebatable arbitrage as of such date and any income
attributable to such rebatable arbitrage as described in Regulation 1.148-3(f)(2).
(c) If necessary, on each Rebate Payment Date, the Issuer will mail a check to
the Internal Revenue Service Center, Ogden, UT 84201. Each payment shall be
accompanied by a copy of Form 8038-T, Arbitrage Rebate, filed with respect to the
Bonds or other information reporting form as is required to comply with the Code and
applicable Regulations.
Section III.8 Records
(a) The Issuer will keep and retain adequate records with respect to the
Bonds, the Gross Proceeds Funds, the Bond Fund, and the Rebate Fund until six years
after the Final Bond Retirement Date. Such records shall include descriptions of all
calculations of amounts transferred to the Rebate Fund, if any, and descriptions of all
calculations of amounts paid to the United States as required by this Certificate. Such
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 Pay, r ents
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.
16
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
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 IUe�aosit
(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.
17
Section IVA Investment Pursuant to Investment Contracts and ARreements
The Issuer will invest or direct the investment of funds on deposit in the Gross Proceeds
Funds, the Bond Fund, and the Rebate Fund pursuant to an investment contract (including a
repurchase agreement) only if all of the following requirements are satisfied:
(a) The Issuer makes a bona fide solicitation for the purchase of the
investment. A bona fide solicitation is a solicitation that satisfies all of the following
requirements:
(1) The bid specifications are in writing and are timely forwarded to
potential providers.
(2) The bid specifications include all material terms of the bid. A term
is material if it may directly or indirectly affect the yield or the cost of the
investment.
(3) The bid specifications include a statement notifying potential
providers that submission of a bid is a representation that the potential provider
did not consult with any other potential provider about its bid, that the bid was
determined without regard to any other formal or informal agreement that the
potential provider has with the issuer or any other person (whether or not in
connection with the Bonds), and that the bid is not being submitted solely as a
courtesy to the issuer or any other person for purposes of satisfying the
requirements of paragraph (d)(6)(iii)(B)(1) or (2) of Section 1.148-5 of the
Regulations.
(4) The terms of the bid specifications are commercially reasonable.
A term is commercially reasonable if there is a legitimate business purpose for the
term other than to increase the purchase price or reduce the yield of the
investment.
(5) For purchases of guaranteed investment contracts only, the terms
of the solicitation take into account the Issuer's reasonably expected deposit and
drawdown schedule for the amounts to be invested.
(6) All potential providers have an equal opportunity to bid and no
potential provider is given the opportunity to review other bids (i.e., a last look)
before providing a bid.
(7) At least three reasonably competitive providers are solicited for
bids. A reasonably competitive provider is a provider that has an established
industry reputation as a competitive provider of the type of investments being
purchased.
(b) The bids received by the Issuer meet all of the following requirements:
(1) The Issuer receives at least three bids from providers that the
Issuer solicited under a bona fide solicitation meeting the requirements of
paragraph (d)(6)(iii)(A) of Section 1.148-5 of the Regulations and that do not
have a material financial interest in the issue. A lead underwriter in a negotiated
underwriting transaction is deemed to have a material financial interest in the
issue until 15 days after the issue date of the issue. In addition, any entity acting
as a financial advisor with respect to the purchase of the investment at the time
the bid specifications are forwarded to potential providers has a material financial
interest in the issue. A provider that is a related party to a provider that has a
material financial interest in the issue is deemed to have a material financial
interest in the issue.
(2) At least one of the three bids described in paragraph
(d)(6)(iii)(B)(1) of Section 1.148-5 of the Regulations is from a reasonably
competitive provider, within the meaning of paragraph (d)(6)(iii)(A)(7) of Section
1.148-5 of the Regulations.
(3) If the Issuer uses an agent to conduct the bidding process, the agent
did not bid to provide the investment.
(c) The winning bid meets the following requirements:
(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.
19
(4) The bid solicitation form and, if the terms of the purchase
agreement or the guaranteed investment contract deviated from the bid solicitation
form or a submitted bid is modified, a brief statement explaining the deviation and
stating the purpose for the deviation.
(5) For purchases of investments other than guaranteed investment
contracts, the cost of the most efficient portfolio of State and Local Government
Series Securities, determined at the time that the bids were required to be
submitted pursuant to the terms of the bid specifications.
Section IV.5 Records
The Issuer will maintain records of all purchases, sales, liquidations, investments,
reinvestments, redemptions, disbursements, deposits, and transfers of amounts on deposit.
Section IV.6 Investments to be Le al
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 11 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 ..p nio—n Bon f"ou seC;_Amendtp.�e�it
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.
20
Section VI.2 Additional Covenants, A erg e ents
The Issuer hereby covenants to make, execute and enter into (and to take such actions, if
any, as may be necessary to enable it to do so) such agreements as may be necessary to comply
with any changes in law or regulations in order to preserve the tax-exempt status of the Bonds to
the extent that it may lawfully do so. The Issuer further covenants (1) to impose such limitations
on the investment or use of moneys or investments related to the Bonds, (2) to make such
payments to the United States Treasury, (3) to maintain such records, (4) to perform such
calculations, and (5) to perform such other lawful acts as may be necessary to preserve the tax-
exempt status of the Bonds.
Section VI.3 Internal. Revenue Service Audits
The Internal Revenue Service has not audited the Issuer regarding any obligations issued
by or on behalf of the Issuer. To the best knowledge of the Issuer, no such obligations of the
Issuer are currently under examination by the Internal Revenue Service.
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.
21
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.
(Seal)
& Director, City of Iowa City, State of
Iowa
22
Exhibit A
Iowa City, Iowa - $14,535,000 General Obligation Bonds, Series 2025A
Issue Price Certificate
The undersigned, on behalf of Jefferies LLC, New York, New York ("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.
its bid.
b) Purchaser was not given the opportunity to review other bids prior to submitting
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 6, 2025.
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 o f 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
23
Exemption Certificate and with respect to compliance with the federal income tax rules affecting
the Bonds, and by Ahlers & Cooney, P.C., as bond counsel, 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.
Dated: June 3, 2025
Jefferies LLC, New York, New York
By:_ ..............
Name:
24
Schedule A
Expected Offering Prices
(Attached)
25
Schedule B
Copy Of Underwriter's Bid
(Attached)
26
Exhibit B
Iowa City, Iowa - $14,535,000 General Obligation Bonds, Series 2025A
Certificate of Municipal Advisor
The undersigned, on behalf of Speer Financial, Inc. (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 Jefferies LLC, New York, New York (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., as bond counsel, 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
27
other federal 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 3, 2025
Attachment 1
Terms of Offering
(Attached)
29
Attachment 2
Bids Received
(Attached)
30
4931-6607-3407-1 \1 0714-151
Attachment 3
Bid Comparison
(Attached)
31
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 $14,535,000 General Obligation Bonds, Series 2025A (the "Bonds") dated June 3, 2025. The
Bonds are being issued pursuant to a Resolution of the Issuer approved on May 20, 2025 (the
"Resolution"). The Issuer covenants and agrees as follows:
Section 1. Pu Dose of the Disclosure Certificate` Int retatin. This Disclosure
Certificate is being executed and delivered by the Issuer for the benefit of the Holders and
Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in
complying with S.E.C. Rule 15c2-12(b)(5). This Disclosure Certificate shall be governed by,
construed and interpreted in accordance with the Rule, and, to the extent not in conflict with the
Rule, the laws of the State. Nothing herein shall be interpreted to require more than required by
the Rule.
Section 2. Definitions. In addition to the definitions set forth in the Resolution, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this
Section, the following capitalized terms shall have the following meanings:
"Annual Financial Information" shall mean financial information or operating data of the
type included in the final Official Statement, provided at least annually by the Issuer pursuant to,
and as described in, Sections 3 and 4 of this Disclosure Certificate.
"Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly,
to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons
holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the
owner of any Bonds for federal income tax purposes.
"Business Day" shall mean a day other than a Saturday or a Sunday or a day on which
banks in Iowa are authorized or required by law to close.
"Dissemination Agent" shall mean the Issuer or any Dissemination Agent designated in
writing by the Issuer and which has filed with the Issuer a written acceptance of such
designation.
"Financial Obligation" shall mean a (i) debt obligation; (ii) derivative instrument entered
into in connection with, or pledged as security or a source of payment for, an existing or planned
debt obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include
municipal securities as to which a final official statement has been provided to the MSRB
consistent with S.E.C. Rule 15c2-12.
"Holders" shall mean the registered holders of the Bonds, as recorded in the registration
books of the Registrar.
"Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure
Certificate.
"Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal
Securities Rulemaking Board, 1300 I Street NW, Suite 1000, Washington, DC 20005.
"National Repository" shall mean the MSRB's Electronic Municipal Market Access
website, a/k/a "EMMA" (emma.msrb.org).
"Official Statement" shall mean the Issuer's Official Statement for the Bonds, dated
May 6 , 2025.
"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 2024/2025 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.
w 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.
0 Levies and Tax Collections.
0 Larger Taxpayers.
0 Tax Rates.
!, Statement of Net Position -Governmental Activities.
a 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. Repo tin o�gnifican -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 Repo tjjObli ation. 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. . 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. Bengficiarics. 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. Resci �'R�Jts, 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 1 2025.
City ; ofTrvixrn City qtnte. of TnWa
M-
Attest:
By*
City Cl rk
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: $14,535,000 General Obligation Bonds, Series 2025A
Dated Date of Issue: June 3, 2025
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:
4897-2772-8447-1 \1 0714-151
Delive 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 2025A, of the City of Iowa City, State of Iowa, in the amount of $14,535,000,
dated June 3, 2025, bearing interest and maturing as follows:
Principal
Interest
Maturity
Amount
Rate
June 1 st
$2,200,000.00
5.000%
2026
$1,375,000.00
5.000%
2027
$1,370,000.00
5.000%
2028
$1,370,000.00
5.000%
2029
$1,370,000.00
5.000%
2030
$1,370,000.00
5.000%
2031
$1,370,000.00
5.000%
2032
$1,370,000.00
5.000%
2033
$1,370,000.00
5.000%
2034
$1,370,000.00
5.000%
2035
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:
Jefferies LLC of New York, New York
and have been paid for in accordance with the terms of the contract of sale and at a price of
$15,617,566.27, 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 6 , 2025 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 2023), according to the last completed
State and County tax lists (100% - Before Rollback) $8,707,355,872
Total general obligation bonded indebtedness of the
City, ncludi�is issue $56,970,000
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 $39,212,230
kind
In Witness Whereof, we have hereunto affixed our hands at the City of Iowa City, State
of Iowa, this
(City Seal)
4938-0990-1119-1 \10714-151
day of 2025.
.......
May r
C c
City U, k
'' an r or
T'r ng pt 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 $14,535,000 General Obligation
Bonds, Series 2025A, of the City dated June 3, 2025, 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 2025, 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 20th day of
May 2025, at Iowa City, Iowa.
City4City f Iowa City, State of Iowa
'_HtLy�,,y
(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 Pro Tem Mazahir Salih
............ �.._.
(Original+Signre)!�7
City Clerk: Kellie Grace
(Original Signature)
Finance Director: Nicole D ies t
(Original Signature)
State of Iowa )
) SS
County of Johnson )
Subscribed and sworn to before me Ma2x-,kr W Vellie Grace and Nicole Davies on this
'2_0 day of r%V1.0LA 2025.
c
(Seal)
4911-6283-6031-1\10714-151
Not Public in and _ Iowa
Notary E'er Johnson C.c �. ty,
CONNIE MCCURDY
Commission Number 855110
My Commission Expires
/Q\V�
April 04, 2027
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") $14,535,000 aggregate principal amount
of Issuer's General Obligation Bonds, Series 2025A, dated June 3, 2025 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, Jefferies LLC, New York, New York, 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 loth day of May , 2025
mane Director
(Seal)
Exhibit A
Closing Amounts
Deposit of Funds Instructions
(See attached closing letter of the Financial Consultant)
4898-5827-6159-1\10714-151
Form 8038—G
(Rev, October 2021)
Department of the Treasury
Internal Revenue Service
Information Return for Tax -Exempt Governmental Bonds
► Under Internal Revenue Code section 149(e)
No -See separate instructions. OMB No. 1545-0047
Caution: If the issue price is under $100,000, use Form 8038-GC.
Ili -Go to www.irs.gov/F8038G for instructions and the latest information.
Amithnr^ity Check box if Amended Return ►
_...... ....
1 Issuers name
r 14- of 1— r1l. Inwa ............. ......�._..�...�„�......._
2 Issuer's employer identification number (EIN)
3ammmName of n other than issuer with �mmmmmmm� p ( ) ith whom the IRS may communicate about this return (see instructions) 3b Telephone number o other person s ow
4 Number and street (or P.O, box if mail is not delivered to street address) Room swte5 meport
10 E. to Washin n Street, 3
4
6 City, town, or post office, state, and ZIP code
Iowas!y, lovr "522 0 .... a...... __..
8 Name of issue
t" t3 d series 2025A
7 Date of issue
June
9 CUSIP number
U88
$14 535,000 General 43rII a Ion cfg s... _ _......._ .....__:m......_m......
..__._ $1...._
10a Name and title of officer or other employee of the issuer whom the IRS may call for more information
of
10b employee s'um rn 10a officer or other
Teep .
Nicole Davies Finance Director
Typeof Issue Inter the issue price.) See the instructions and attach schedule.
319.356.5053
�.
11
Education . . .
E
11
12
mmmmm-
12
Health and hospital
. .
13
§, 54m542,35
13
Transportation . . . . . . . . , , , . . . • . .
....
14
.....
7"55,151 m2
14
Public safety .
15
_..._
15
Environment (including sewage bonds) . ., . • . • . .
mm— •••---
16
Housing . . . . . . . . . .
16
17
_ ._....
2a0i183.1
17
18b
19a
Utilities . . . . . . . . .
_.a _. _ ....___ .. _ .. _....
If bonds are TANS orrks and Recreation
only box 19a ►
arerBANs,ibe No- Pcheck
18No.
2 54x 942 08
IIff bondDs only box 19b
20
If bonds are in the form of a lease or installment sale, check box ,
.
s. CO fete for g ed.
rp the entire issue for which thismtorrn Ismbeln f)l d
Bonds. ..
..µ�.
. ..... tlCde
() maturity
(b) Issue price
Ic) Stated redemption
price at maturity
(d) Weighted
average maturity
(e) Yield
21
06/0112035
$ $15630,818.85,$
$14,535,000.00,
ears 3.2187"ITIT
5.313 ears Y Im%
Uses f Proceeds of Bond Issue including Underwriters" discount)
........... _... .._.....
...... . � ......._
22
Proceeds used for accrued interest . . . . . . . . .
22
23
Issue price of entire Issue (enter amount lineg21, column (b)) .
23�
_ 15, 630 818.8
24
from
Issuance costs (including underwriters'
Proceeds used for bond "discount)_
25
97 617 58
0
L
25
Proceeds used for credit enhancement .
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
g
28
Proceeds used to refund prior taxable bonds. Complete Part V
28
0
29
Totales
( g )
�
97 5 8
30
o4 reds of the issue subtract line 29 from I
g p ( me 23 and enter amount here)
30
15,533,201.27
Description of Refunded Bonds. Complete this pant CIO for refunding bonds
31
Enter the remaining weighted average maturity of the tax-exempt bonds to be refunded
► 0.0000 Years .
32
.. g .g g .�
Enter the remaining weighted average maturity of the taxable bonds to be refunded
"
► 0 0000 Y ears
33
Enter the last date on which the refunded tax-exempt bonds will be called MM/DDNYYY)
p (
► �.
34
Enter the dates) the refunded bonds were issued ► (MM/DD/YYYY)
-
For Paperwork Reduction Act Notice, see separate instructions. Cat. No, 63773S
Form 8038-G (Rev. 10-2021)
Form 8038-G (Rev. 10-2021) Page 2
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 ;,,u,, 1�
(GIC). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . 36a
-0-
b
Enter the final maturity date of the GIC ► (MM/DD/YYYY) _......_ -
Enter the name ovider 0--.-.-.-�_--._..--_............ f
37c
Pooled financings: Entehe r the amount of the proceeds of this issue that are to be used to p sed t make loans
to other governmental units . . . . . . . . . . . . . . . . . . . . . . . . 37
.0-
38a
If this issue is a loan made from the proceeds of another tax-exempt issue, check box ► ❑ and enter the following information:
b
Enter the date of the master pool bond ► (MM/DD/YYYY)
c
Enter the EIN of the issuer of the master pool bond ►
d
Enter the name of the issuer of the master pool bond ►
39
If the issuer has designated the issue under section 265(b)(3)(13)(i)(111) (small issuer exception), check box . . . . ►
❑
40
If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box . . . . . . . . ►
❑
41 a
If the issuer has identified a hedge, check here ► ❑ and enter the following information:
b
Name of hedge provider ► -
c
Type of hedge ► -
d
Term of hedge ► -
42
If the issuer has superintegrated the hedge, check box . . . . . . . . . . . . . . . . . . . . . ►
❑
43
If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated
according to the requirements under the Code and Regulations (see instructions), check box . . . . . . . . ►
❑✓
44
If the issuer has established written procedures to monitor the requirements of section 148, check box . . . . . ►
❑�
45a
If some portion of the proceeds was used to reimburse expenditures, check here ► ❑✓ and enter the amount
of reimbursement . . . . . . . . . . . . . . ►
b
Enter the date the official intent was adopted ► (MM/DD/"fYYYY)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge
Sinature and belief, they are true, correct, and complete. I further declare that I consent to the IRS s disclosure of the issuer s return information, as necessary to
g process this return, to the person that I have authorized above.
and
Consent _ _ __ _ _ _ Nicole Davies, Finance Director
Sig ature of suet's authorized representative _ _ Date _,-------- - -- Type or print name and title
-__._._._._._.._.._.._.._.._...._._.----_._._._._._.----------------------._._.--......
Paid Print/Type preparer's name Preparer's signature Date Check ❑ if PTIN
Kristin Billinsle Coa ermmmmmm self-employed P02001942
Preparer __ ___..__ ..__. .............� _ �. _.........................
Use Only Firm's name ► Ahtters & oone „ P.C. Firm's EIN ► 42-1323559
Frm's address ► 100 Court Avenue, smite 600. Des Moines. Iowa 50309 Phone no. 515-243-7611
Form 8038-G (Rev. 10-2021)
County Audi" Cer�alicate
I County Auditor of Johnson County, State of Iowa,
herebycerti that on ae�t day of c , 2025 there was filed in my
fY
office the Resolution of the City Council of the City o Iowa City, State of Iowa, adopted on the
20th day of May, 2025, such Resolution levying a to or the purpose of paying principal and
interest on $14,535,000 of General Obligation Bonds, Series 2025A, dated June 3, 2025, and
authorizing the issuance of the Bonds.
(COUNTY SEAL) County Auditor , Johnson C unty, S t o
Iowa
RECEIVED
JOHNSON CO. IOWA
MAY 2 8 2025
4897-0334-9055-1 \1 0714-151
Council Member Moe introduced the following Resolution
entitled "Resolution Authorizing and Providing for the Issuance of $14,535,000 General
Obligation Bonds, Series 2025,.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 Harmsen seconded the motion to adopt, and the roll being
called thereon, the vote was as follows:
Ayes: Bergus, Harmsen, Moe, Salih, Tea ue, Weilein
Nays:
None
Absent: Alter
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution No. 25-111
Resolution Authorizing and Providing for the Issuance of
$14,535,000 General Obligation Bonds, Series 2025, 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; the acquisition, construction and improvement of works and facilities useful
for the collection and disposal of surface waters and streams, and for the protection of property
situated within the corporate limits from floods or high waters, and for the protection of property
from the effects of flood waters; equipping the fire department; 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 $11,300,000 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 a swimming pool, park and related facilities,
general corporate purpose(s), and it is deemed necessary and advisable that General Obligation
Bonds, to the amount of not to exceed $1,335,100 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 $934,570; 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, construction,
improvement and equipping of recreational grounds and buildings, parks and the acquisition of
real estate therefor, general corporate purpose(s), and it is deemed necessary and advisable that
General Obligation Bonds, to the amount of not to exceed $1,000,000 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 $934,570; 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, pools, recreation centers, community centers 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 $900,000 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 $934,570; 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 $14,535,000 General Obligation
Bonds as hereinafter set forth; and
R
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.
• "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 $14,535,000 General Obligation Bonds, Series
2025A, 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; the acquisition, construction and improvement of
works and facilities useful for the collection and disposal of surface waters and streams,
and for the protection of property situated within the corporate limits from floods or high
waters, and for the protection of property from the effects of flood waters; equipping the
fire department; 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 a swimming
pool, park and related facilities; the acquisition, construction, improvement and
equipping of recreational grounds and buildings, parks and the acquisition of real estate
therefor; the acquisition, reconstruction, improvement and equipping of fire stations,
pools, recreation centers, community centers and City Hall.
• "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. ._he Used.
a) Lev 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
$2,922,712.50
2025/2026*
$1,991,750.00
2026/2027
$1,918,000.00
2027/2028
$1,849,500.00
2028/2029
$1,781,000.00
2029/2030
$1,712,500.00
2030/2031
$1,644,000.00
2031/2032
$1,575,500.00
2032/2033
$1,507,000.00
2033/2034
$1,438,500.00
2034/2035
*A levy in the amount of $2,922,712.50 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 2025/2026, with any amount leftover remaining in the debt service fund to pay
principal and interest in fiscal year 2026/2027.
(NOTE: For example the levy to be made and certified against the taxable valuations of
January 1, 2025 will be collected during the fiscal year commencing July 1, 2026.)
b) Resolution to be Filed. With Count �aditor. A certified copy of this
Resolution, which amends the Resolution Authorizing the Issuance of General Obligation
Bonds, Series 2025A, and Levying a Tax for the Payment Thereof, dated March 11,
2025, 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 C%t Funils 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.
9
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 "2025A 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 Band Proceed. 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, 2025, 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, 2025, 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 Redem tion.
a) Bond Details. General Obligation Bonds of the City in the amount of
$14,535,000, 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 2025A", be dated June 3, 2025, and bear interest from
the date thereof, until payment thereof, at the office of the Paying Agent, said interest
payable on December 1, 2025, and semiannually thereafter on the 1 st day of June and
December in each year until maturity at the rates hereinafter provided.
The Bonds shall be executed by the manual or facsimile signature of the Mayor
and attested by the manual or facsimile signature of the Clerk, and impressed or printed
with the seal of the City and shall be fully registered as to both principal and interest as
provided in this Resolution; principal, interest and premium, if any, shall be payable at
the office of the Paying Agent by mailing of a check to the registered owner of the Bond.
The Bonds shall be in the denomination of $5,000 or multiples thereof. The Bonds shall
mature and bear interest as follows:
10
Principal
Interest
Maturity
Amount
Rate
June 1 st
$2,200,000.00
5.000%
2026
$1,375,000.00
5.000%
2027
$1,370,000.00
5.000%
2028
$1,370,000.00
5.000%
2029
$1,370,000.00
5.000%
2030
$1,370,000.00
5.000%
2031
$1,370,000.00
5.000%
2032
$1,370,000.00
5.000%
2033
$1,370,000.00
5.000%
2034
$1,370,000.00
5.000%
2035
b) Rcpton.
i. Qptional RederrKptiq . Bonds maturing after June 1, 2032, may be
called for optional redemption by the Issuer on that date or any date thereafter,
from any funds regardless of source, in whole or from time to time in part, in any
order of maturity and within an annual maturity by lot. The terms of redemption
shall be par, plus accrued interest to date of call.
Thirty days' written notice of redemption shall be given to the registered
owner of the Bond. Failure to give written notice to any registered owner of the
Bonds or any defect therein shall not affect the validity of any proceedings for the
redemption of the Bonds. All Bonds or portions thereof called for redemption
will cease to bear interest after the specified redemption date, provided funds for
their redemption are on deposit at the place of payment. Written notice will be
deemed completed upon transmission to the owner of record.
If selection by lot within a maturity is required, the Registrar shall
designate the Bonds to be redeemed by random selection of the names of the
registered owners of the entire annual maturity until the total amount of Bonds to
be called has been reached.
If less than all of a maturity is called for redemption, the Issuer will notify
DTC of the particular amount of such maturity to be redeemed prior to maturity.
DTC will determine by lot the amount of each Participant's interest in such
maturity to be redeemed and each Participant will then select by lot the beneficial
ownership interests in such maturity to be redeemed. All prepayments shall be at
a price of par plus accrued interest.
Section 7. Issuance of Bonds in Book -Entry Form; _Re lceinent 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
11
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 US.
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 tinder 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 Participants) 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 DI"C to the Paying Agent and
Registrar of written notice that DTC has determined to substitute a new nominee in place
of Cede & Co., the: Bonds will be transferable to the new nominee in accordance with this
Section.
c) In the event the Issuer determines that it is in the best interest of the Beneficial
Owners that they be able to obtain Bonds certificates, the Issuer may notify DTC and the
Paying Agent and Registrar, whereupon DTC will notify the Participants, of the
availability through DTC of Bonds certificates, The Bonds will be transferable in
accordance with this Section. DTC may determine to discontinue providing its services
with respect to the Bonds at any time by giving notice to the Issuer and the Paying Agent
and Registrar and discharging its responsibilities under applicable law. In this event, the
Bonds will be transferable in accordance with this Section.
12
d) Notwithstanding any other provision of the Resolution to the contrary, so long
as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments
with respect to the principal of and premium, if any, and interest on the Bond and all
notices must be made and given, respectively to DTC as provided in the Representation
letter.
e) In connection with any notice or other communication to be provided to
Bondholders by the Issuer or the Paying Agent and Registrar with respect to a consent or
other action to be taken by Bondholders, the Issuer or the Paying Agent and Registrar, as
the case may be, shall establish a record date for the consent or other action and give
DTC notice of the record date not less than 15 calendar days in advance of the record
date to the extent possible. Notice to DTC must be given only when DTC is the sole
Bondholder.
f) The Representation Letter is on file with DTC and sets forth certain matters
with respect to, among other things, notices, consents and approvals by Bondholders and
payments on the Bonds. The execution and delivery of the Representation Letter to DTC
by the Issuer is ratified and confirmed.
g) In the event that a transfer or exchange of the Bonds is permitted under this
Section, the transfer or exchange may be accomplished upon receipt by the Registrar
from the registered owners of the Bonds to be transferred or exchanged and appropriate
instruments of transfer. In the event Bond certificates are issued to holders other than
Cede & Co., its successor as nominee for DTC as holder of all the Bonds, or other
securities depository as holder of all the Bonds, the provisions of the Resolution apply to,
among other things, the printing of certificates and the method or payment of principal of
and interest on the certificates. Any substitute depository shall be designated in writing
by the Issuer to the Paying Agent. Any such substitute depository shall be a qualified and
registered "clearing agency" as provided in Section 17A of the Securities Exchange Act
of 1934, as amended. The substitute depository shall provide for (i) immobilization of
the Depository Bonds, (ii) registration and transfer of interests in Depository Bonds by
book entries made on records of the depository or its nominee and (iii) payment of
principal of, premium, if any, and interest on the Bonds in accordance with and as such
interests may appear with respect to such book entries.
h) The officers of the Issuer are authorized and directed to prepare and furnish to
the purchaser, and to the attorneys approving the legality of Bonds, certified copies of
proceedings, ordinances, resolutions and records and all certificates and affidavits and
other instruments as may be required to evidence the legality and marketability of the
Bonds, and all certified copies, certificates, affidavits and other instruments constitute
representations of the Issuer as to the correctness of all stated or recited facts.
Section 8. Registration of Bonds A ointment of Re istr r` 'Fransfer` Ownersl
elivery and Cancellation.
a) Rggjgjation. The ownership of Bonds may be transferred only by the making
of an entry upon the books kept for the registration and transfer of ownership of the
13
Bonds, and in no other way. U.S. Bank Trust Company, National Association is hereby
appointed as Bond Registrar under the terms of this Resolution and under the provisions
of a separate agreement with the Issuer filed herewith which is made a part hereof by this
reference, Registrar shall maintain the books of the Issuer for the registration of
ownership of the Bonds for the payment of principal of and interest on the Bonds as
provided in this Resolution. All Bonds shall be negotiable as provided in Article 8 of the
Uniform Commercial Code and Section 384.31 of the Code of Iowa, subject to the
provisions for registration and transfer contained in the Bonds and in this Resolution.
b) Transfer. The ownership of any Bond may be transferred only upon the
Registration Books kept for the registration and transfer of Bonds and only upon
surrender thereof at the office of the Registrar together with an assignment duly executed
by the holder or his duly authorized attorney in fact in such form as shall be satisfactory
to the Registrar, along with the address, and social security number or federal employer
identification number of such transferee (or, if registration is to, be made in the name of
multiple individuals, of all such transferees). In the event that the address of the
registered owner of a Bond (other than a registered owner which is the nominee of the
broker or dealer in question) is that of a broker or dealer, theremust 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
urunatured and unredeemed principal amount of such transferred fully registered 'Bond,
and bearing interest at the same rate and maturing on the same date or dates shall be
delivered by the Registrar.
C) Re - istratic�n 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) Qwrtorshi, . 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.
0 Non -Presentment off" Bonds. In the event any payment check, wire, or
electronic transfer of funds representing payment of principal of or interest on the Bonds
is returned to the Paying Agent or if any bond is not presented for payment of principal at
the maturity or redemption date, if funds sufficient to pay such principal of or interest on
14
Bonds shall have been made available to the Paying Agent for the benefit of the owner
thereof, all liability of the Issuer to the owner thereof for such interest or payment of such
Bonds shall forthwith cease, terminate and be completely discharged, and thereupon it
shall be the duty of the Paying Agent to hold such funds, without liability for interest
thereon, for the benefit of the owner of such Bonds who shall thereafter be restricted
exclusively to such funds for any claim of whatever nature on his part under this
Resolution or on, or with respect to, such interest or Bonds. The Paying Agent's
obligation to hold such funds shall continue for a period equal to two years and six
months following the date on which such interest or principal became due, whether at
maturity, or at the date fixed for redemption thereof, or otherwise, at which time the
Paying Agent shall surrender any remaining funds so held to the Issuer, whereupon any
claim under this Resolution by the Owners of such interest or Bonds of whatever nature
shall be made upon the Issuer.
g) I�istration and Transfer Fees. The Registrar may furnish to each owner, at
the Issuer's expense, one bond for each annual maturity. The Registrar shall furnish
additional Bonds in lesser denominations (but not less than the minimum denomination)
to an owner who so requests.
Section 9. Reissuance of Mutilated Destroyed, Stolen or Lost Bonds. In case any
outstanding Bond shall become mutilated or be destroyed, stolen or lost, the Issuer shall at the
request of Registrar authenticate and deliver a new Bond of like tenor and amount as the Bond so
mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond to
Registrar, upon surrender of such mutilated Bond, or in lieu of and substitution for the Bond
destroyed, stolen or lost, upon filing with the Registrar evidence satisfactory to the Registrar and
Issuer that such Bond has been destroyed, stolen or lost and proof of ownership thereof, and
upon furnishing the Registrar and Issuer with satisfactory indemnity and complying with such
other reasonable regulations as the Issuer or its agent may prescribe and paying such expenses as
the Issuer may incur in connection therewith.
Section 10. Record. Date. Payments of principal and interest, otherwise than upon full
redemption, made in respect of any Bond, shall be made to the registered holder thereof or to
their designated agent as the same appear on the books of the Registrar on the 15th day of the
month preceding the payment date. All such payments shall fully discharge the obligations of
the Issuer in respect of such Bonds to the extent of the payments so made. Upon receipt of the
final payment of principal, the holder of the Bond shall surrender the Bond to the Paying Agent.
Section 11. Execution, Authentication and Delivery of the Bonds. Upon the adoption of
this Resolution, the Mayor and Clerk shall execute the Bonds by their manual or authorized
signature and deliver the Bonds to the Registrar, who shall authenticate the Bonds and deliver the
same to or upon order of the Purchaser. No Bond shall be valid or obligatory for any purpose or
shall be entitled to any right or benefit hereunder unless the Registrar shall duly endorse and
execute on such Bond a Certificate of Authentication substantially in the form of the Certificate
herein set forth. Such Certificate upon any Bond executed on behalf of the Issuer shall be
conclusive evidence that the Bond so authenticated has been duly issued under this Resolution
and that the holder thereof is entitled to the benefits of this Resolution.
15
No Bonds shall be authenticated and delivered by the Registrar unless and until there
shall have been provided the following:
1. A certified copy of the Resolution of Issuer authorizing the issuance of the Bonds;
2. A written order of Issuer signed by the Treasurer of the Issuer directing the
authentication and delivery of the Bonds to or upon the order of the Purchaser
upon payment of the purchase price as set forth therein;
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 Patio Agent or Ret;a_tarar. Issuer reserves the right
to name a substitute, successor Registrar or Paying Agent upon giving prompt written notice to
each registered bondholder.
Section 13. Forrn 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 2025A"
Corporate Purpose
Rate:
Maturity:
Bond Date: June 3, 2025
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 sung of (enter principal amount in long form) Thousand
Dollars in lawful money of the United. States of Arnerica, 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 ofthis 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, 2025, and
semiannually thereafter on the 1 st day of June and December in each year.
16
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; the acquisition,
construction and improvement of works and facilities useful for the collection and disposal of
surface waters and streams, and for the protection of property situated within the corporate limits
from floods or high waters, and for the protection of property from the effects of flood waters;
equipping the fire department; 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 a swimming pool, park and
related facilities; the acquisition, construction, improvement and equipping of recreational
grounds and buildings, parks and the acquisition of real estate therefor; the acquisition,
reconstruction, improvement and equipping of fire stations, pools, recreation centers, community
centers and City Hall, in conformity to a Resolution of the Council of said City duly passed and
approved.
Unless this certificate is presented by an authorized representative of The Depository
Trust Company, a limited purpose trust company ("DTC"), to the Issuer or its agent for
registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede & Co. or such other name as requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other Issuer as is requested by an authorized
representative of DTC), Any Transfer, Pledge Or Other Use Hereof For Value Or Otherwise By
Or To Any Person Is Wrongful inasmuch as the registered owner hereof, Cede & Co., has an
interest herein.
Bonds maturing after June 1, 2032, may be called for optional redemption by the Issuer
and paid before maturity on said date or any date thereafter, from any funds regardless of source,
in whole or from time to time in part, in any order of maturity and within an annual maturity by
lot. The terms of redemption shall be par, plus accrued interest to date of call.
Thirty days' written notice of redemption shall be given to the registered owner of the
Bond. Failure to give written notice to any registered owner of the Bonds or any defect therein
shall not affect the validity of any proceedings for the redemption of the Bonds. All bonds or
portions thereof called for redemption will cease to bear interest after the specified redemption
date, provided funds for their redemption are on deposit at the place of payment. Written notice
will be deemed completed upon transmission to the owner of record.
17
If selection by lot within a maturity is required, the Registrar shall designate the Bonds to
be redeemed by random selection of the names of the registered owners of the entire annual
maturity until the total amount of Bonds to be called has been reached.
If less than all of a maturity is called for redemption, the Issuer will notify DTC of the
particular amount of such maturity to be redeemed prior to maturity. DTC will determine by lot
the amount of each Participant's interest in such maturity to be redeemed and each Participant
will then select by lot the beneficial ownership interests in such maturity to be redeemed. All
prepayments shall be at a price of par plus accrued interest.
Ownership of this Bond may be transferred only by transfer upon the books kept for such
purpose by U.S. Bank Trust Company, National Association, the Registrar. Such transfer on the
books shall occur only upon presentation and surrender of this Bond at the office of the Registrar
as designated below, together with an assignment duly executed by the owner hereof or his duly
authorized attorney in the form as shall be satisfactory to the Registrar. Issuer reserves the right
to substitute the Registrar and Paying Agent but shall, however, promptly give notice to
registered Bondholders of such change. All bonds shall be negotiable as provided in Article 8 of
the Uniform Commercial Code and Section 384.31 of the Code of Iowa, subject to the provisions
for registration and transfer contained in the Bond Resolution.
And it is hereby represented and certified that all acts, conditions and things requisite,
according to the laws and Constitution of the State of Iowa, to exist, to be had, to be done, or to
be performed precedent to the lawful issue of this Bond, have been existent, had, done and
performed as required by law; that provision has been made for the levy of a sufficient
continuing annual tax on all the taxable property within the territory of the Issuer for the payment
of the principal and interest of this Bond as the same will respectively become due; that such
taxes have been irrevocably pledged for the prompt payment hereof, both principal and interest;
and the total indebtedness of the Issuer including this Bond, does not exceed the constitutional or
statutory limitations.
In Testimony Whereof, the Issuer by its Council, has caused this Bond to be signed by
the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature
of its City Clerk, with the seal of the City printed or impressed hereon, and to be authenticated by
the manual signature of an authorized representative of the Registrar, U.S. Bank Trust Company,
National Association, St. Paul, Minnesota.
Date of authentication:
This is one of the Bonds described in the within mentioned
Resolution, as registered by U.S. Bank Trust Company, National
Association.
U.S. Bank Trust Company, National Association, Registrar
By:
Authorized Signature
Registrar and Transfer Agent:
National Association
Paying Agent:
National Association
See Reverse for Certain Definitions
(Seal)
(Signature Block)
City Of Iowa City, State of Iowa
U.S. Bank Trust Company,
U.S. Bank Trust Company,
By:(manual „or facsimile si ature
Mayor
Attest:
By: manual or facsimile signature)
City Clerk
(Information Required for Registration)
Assignment
For value received, the undersigned hereby sells, assigns and transfers unto
(Social Security or Tax Identification No.
_) the within Bond and does hereby irrevocably constitute and appoint
attorney in fact to transfer the said Bond on the books kept
for registration of the within Bond, with full power of substitution in the premises.
Dated:
Signature )
Guaranteed
(Person(s) executing this Assignment sign(s) here)
19
Important - Read Carefully
The signature(s) to this Power must correspond with the name(s) as written upon the face
of the certificate(s) or bond(s) in every particular without alteration or enlargement or any
change whatever. Signature guarantee rust 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*
Partnership
Corporation
Trust
*If the Bond is to be registered in the names of multiple individual owners, the names of all such
owners and one address and social security number must be provided.
The following abbreviations, when used in the inscription on the face of this Bond, shall
be construed as though written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with rights of survivorship and not as tenants in common
IA UNIF TRANS MIN ACT - .......... Custodian ..........
(Cust) (Minor)
Under Iowa Uniform Transfers to Minors Act ...................
(State)
Additional Abbreviations May
Also Be Used Though Not In The Above List
(End of form of Bond)
Section 14. !Q osin 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 lssuer and Purchaser. This Resolution constitutes a
contract between said City and the purchaser of the Bonds.
pill
Section 16. Non-Arbitra e 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. royal of Tax Exem tion Certificate. Attached hereto is a form of Tax
Exemption Certificate stating the Issuer's reasonable expectations as to the use of the proceeds of
the Bonds. The form of Tax Exemption Certificate is approved. The Issuer hereby agrees to
comply with the provisions of the Tax Exemption Certificate and the provisions of the Tax
Exemption Certificate are hereby incorporated by reference as part of this Resolution. The
Finance Director is hereby directed to make and insert all calculations and determinations
necessary to complete the Tax Exemption Certificate at issuance of the Bonds to certify as to the
reasonable expectations and covenants of the Issuer at that date.
Section 18. Continuing Disclosure. The Issuer hereby covenants and agrees that it will
comply with and carry out all of the provisions of the Continuing Disclosure Certificate, and the
provisions of the Continuing Disclosure Certificate are hereby incorporated by reference as part
of this Resolution and made a part hereof. Notwithstanding any other provision of this
Resolution, failure of the Issuer to comply with the Continuing Disclosure Certificate shall not
be considered an event of default under this Resolution; however, any holder of the Bonds or
Beneficial Owner may take such actions as may be necessary and appropriate, including seeking
specific performance by court order, to cause the Issuer to comply with its obligations under the
Continuing Disclosure Certificate. For purposes of this section, "Beneficial Owner" means any
person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to
dispose of ownership of, any Bond (including persons holding Bonds through nominees,
depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal
income tax purposes.
Section 19, Additional Covenants Re resentations and Warranties of the Issuer. The
Issuer certifies and covenants with the purchasers and holders of the Bonds from time to time
outstanding that the Issuer through its officers, (a) will make such further specific covenants,
representations and assurances as may be necessary or advisable; (b) comply with all
representations, covenants and assurances contained in the Tax Exemption Certificate, which
Tax Exemption Certificate shall constitute a part of the contract between the Issuer and the
owners of the Bonds;(c) consult with Bond Counsel (as defined in the Tax Exemption
Certificate); (d) pay to the United States, as necessary, such sums of money representing required
rebates of excess arbitrage profits relating to the Bonds;(e) file such forms, statements and
supporting documents as may be required and in a timely manner; and (f) if deemed necessary or
advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other
persons to assist the Issuer in such compliance.
21
Section 20. Amendment of Resolution to Maintain Tax Exemption. This Resolution may
be amended without the consent of any owner of the Bonds if, in the opinion of Bond Counsel,
such amendment is necessary to maintain tax exemption with respect to the Bonds under
applicable Federal law or regulations.
Section 21. &peal o f C�q lictin 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 201h day of May, 2025.
Attest:
City Clerl
Mayor Pro Tem
22
Certificate
State of Iowa )
) SS
County of Johnson )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this 20th day of
May
City Clerk, City of Iowa City, State of Iowa
(Seal)
4900-3581-0623-1\10714-151
Item Number: 6.c.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution approving an agreement with Summer of the Arts, Inc. to allow the sale,
consumption, and possession of beer and wine on City streets during Arts Fest and Jazz Fest.
Prepared By:
Reviewed By:
Fiscal Impact:
Staff Recommendation:
Commission Recommendations
Attachments: Resolution
Agreement
Susan Dulek, First Ass't. City Attorney
Geoff Fruin, City Manager
none
Approval
N/A
Executive Summary:
The City Code allows non -profits by written agreement to sell and their customers to
consume and possess alcohol on City streets under limited circumstances. Summer of the
Arts, Inc. would like to be able to sell beer and wine in a demarcated area near the
intersection of Iowa Ave. and Clinton St. during Arts Fest and Jazz Fest. The resolution
approves an agreement that is the same as previous years.
61c
Prepared by: Susan Dulek, First Asst. City Attomey, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
Resolution No. 25-112
Resolution approving an agreement with Summer of the Arts,
Inc. to allow the sale, consumption, and possession of beer and
wine on City streets during Arts Fest and Jazz Fast.
Whereas, section 4-5-3D of the City Code allows non-profit corporations by written agreement
to sell and their customers to consume and possess alcohol on public right-of-way under limited
circumstances; and
Whereas, Summer of the Arts, Inc. would like to be able to sell beer and wine in a demarcated
area on a City street during Arts Fast and Jazz Fast; 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 loth day of May, 2025.
Mayor pro Tem
Approved by
Attest: /
eputy City Mrk City Atton) y's Office
(Sue Dulek — 05/1312025)
It was moved by Moe and seconded by Harmsen the Resolution be
adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
X Alter
X
Bergus
X
Harmsen
X
Moe
x
Salih
�—
Teague
Weilein
2025 AGREEMENT
BETWEEN THE CITY OF IOWA CITY AND SUMMER OF THE ARTS, INC.
TO ALLOW THE TEMPORARY AND LIMITED SALE, CONSUMPTION, AND
POSSESSION OCITYSTREETS DURING IOWA ARTS
FESTIVAL AND IOWA CITY JAZZ FESTIVAL
This Agreement is made between Summer of the Arts, Inc. ("SOTA") and the City of
Iowa City, a municipal corporation ("City"), in Iowa City, Iowa.
Whereas, SOTA is an "authorized entity' as that term is defined in section 4-5-31) of
the City Code; and
Whereas. SOTA has applied for a license to sell beer and wine during the Iowa Arts
Festival ("Arts Fast") and the Iowa City Jazz Festival ("Jazz Fast") in downtown Iowa City;
and
Whereas, the parties wish to enter into an agreement to allow SOTA to sell beer
and wine and to allow persons to possess and consume beer and wines under limited
circumstances on downtown City streets.
THE PARTIES THEREFORE AGREE AS FOLLOWS.
1. Authorized Site.
a) Arts Fest. In consideration for SOTA's promises herein, the City agrees to
allow SOTA control over the area in the 10 block of N. Clinton Street as shown
on the diagram which is attached, marked Exhibit A, and incorporated herein
("Arts Fest authorized site") during the Term of this agreement.
b) Jazz Fest. In consideration for SOTA's promises herein, the City agrees to
allow SOTA control over the area in the 10 block of S. Clinton Street as shown
on the diagram which is attached, marked Exhibit B, and incorporated herein
("Jazz Fast authorized site") during the Term of this agreement.
2. Term. This agreement shall commence at 5:00 pm on June 6, 2025 and shall
expire at 4:00 pm on June 8, 2025 for Arts Fast and shall commence again at
5:00 pm on July 4, 2025 and shall expire again at 4:00 pm on July 6, 2025 for
Jazz Fast. More particularly, alcohol may only be sold and possessed on the
Arts Fest authorized site during the following hours: June 6: 6:00 pm-10:00 pm;
June 7: noon —10:00 pm; June 8: noon-4:00 pm. More particularly, alcohol may
only be sold and possessed on the Jazz Fast authorized site during the following
hours: July 5: 5:00 pm — 10:00 pm; July 6: 11:30 am — 10:00 pm; July 7: noon —
4:00 pm.
3. Access. at every person on
the authorized site has a stamp or wrist band forntry oke all reasonable steps to r is h SOTA shallsan employee of, an
independent contractor of, or volunteer for SOTA and shall exclude any person
who is not.
4. License. This agreement is void if SOTA does not have a license to sell beer and
wine on the Arts Fast authorized site at any time during the period of June 6,
2025 through June 8, 2025 and on the Jazz Fast authorized site at any time
during the period of July 4, 2024 through July 6, 2024.
5. Sale of Beer and Alcohol Restrictions. SOTA shall only sell beer and wine to a
Person who is over twenty-one (21) years of age. SOTA acknowledges that the
authorized sites are subject to all applicable alcohol restrictions in the City Code
including Section 4-5-8 of the City Code that restricts entry to those over twenty-
one (21) years of age after 10:00 p.m. with limited exception.
6. Advertisement. SOTA shall not, nor shall it allow anyone to, erect or place any
sign or other matter advertising any brand of alcoholic liquor, beer, or wine upon
the authorized site with the exception that signage may be placed on the interior
tent wall. Sponsorship signage unrelated to businesses selling alcohol, beer,
wine, or tobacco will be allowed.
T. fpn. 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.
B. Debris and Trash. SOTA shall be solely responsible for collecting all debris and
trash from the authorized sites, and the City shall then remove the debris and
trash. If SOTA fails to do so and if City staff has to collect the debris and trash
from the authorized sites. SOTA may be responsible for the cost incurred by the
City, including staff time, and shall pay the costs in full within thirty (30) days of
receiving an invoice.
9. No Smoking. Smoking is prohibited in the authorized sites, and SOTA shall post
a no -smoking a sign at the front entrance to the authorized sites and two signs
inside the authorized sites. The signs shall comply with Iowa Code Section
142D.6, as amended. Additionally, the use of electronic cigarettes is prohibited.
Electronic cigarette means vapor product as defined in Section 453A.1 of the
Code of Iowa, as amended.
tO.Temoorery Toilet Facilities. SOTA shall provide at its sole cost the temporary
toilet faciliti
accessible. as
shown on Exhibits A and 8, including two (2) that are handicap
11.Occupancv and Exits. The maximum occupancy load of the authorized sites will
be provided by the City prior to the events. SOTA is solely responsible for
maintaining the occupancy limits. SOTA shall post a sign with the maximum
occupancy load inside the authorized site. SOTA shall maintain two (2) exits in
each authorized site and post "exit" signs at both exits, with the location and size
of the signs to be approved by the City Fire Department. Each exit must be a
minimum 36 inches in width.
12. Anchoring and Drilling. SOTA shall not drill any holes into the pavement or the
sidewalk and shall not anchor a tent tie down or pole to the pavement or the
sidewalk.
13. Fencing. The authorized site shall be enclosed by fencing as approved by the
City.
14. Fire Lane. SOTA shall maintain a fire lane of twenty feet (20') between the
outside fence and the vendors across the street, unless approved by the Fire
Code Official.
15. Insurance.
a) Premises Insurance. From June 6, 2025 through June 8, 2025 and from
July 4, 2025 through July 6, 2025 SOTA shall carry comprehensive
general liability insurance for bodily injury and property damage on the
Arts Fest and Jazz Fest in the amount of $1,000,000 (one million dollars)
at
for each occurrence and $2,000,000 (two million dollars) in the aggregate
and shall name the City as an additional insured. SOTA shall furnish a
copy of a certificate of insurance for same, satisfactory to the City at the
time of execution of this agreement. SOTA shall provide thirty (30) days
notice to the City before cancellation of said insurance, and said
cancellation shall automatically terminate this Agreement.
b) Dram Shop Insurance. From June 6, 2025 through June 8, 2025 and
from July 4, 2025 through July 6, 2025, SOTA shall carry "dram shop"
insurance in compliance with Iowa Code section 123.92, as amended, in
the amount of $1,000,000 (one million dollars). SOTA shall provide thirty
(30) days notice to the City before cancellation of said insurance, and
said cancellation shall automatically terminate this Agreement.
c) Governmental Immunities Endorsement. SOTA shall obtain a
governmental immunities endorsement that meets the requirements set
forth on Exhibit C, which is attached and incorporated herein.
16. Indemnification. SOTA shall pay on behalf of the City all sums which the City
shall be obligated to pay by reason of any liability imposed upon the City for
damages of any kind resulting from the use of the authorized sight or sale,
consumption, or possession of beer and wine on the authorized site, whether
sustained by any person or person, caused by accident or otherwise and
shall defend at its own expense and on behalf of the City, its officers,
employees and agents any claim against the City, its officers, employees,
and agents arising out of the use of the authorized site or sate, consumption,
or possession of beer and wine on the Arts Fast and Jazz Fest authorized
sites.
17. Non -Discrimination. SOTA shall not discriminate against any person in
employment or public accommodation because of race. religion, color, creed,
gender identity, sex, national origin, sexual orientation, mental or physical
disability, marital status or age. "Employment" shall include but not be limited
to hiring, accepting, registering, classifying, promoting, or referring to
employment. "Public accommodation" shall include but not be limited to
providing goods, services, facilities, privileges and advantages to the public.
18. Termination. The City may terminate this agreement upon written notice for
violation of any provision of this agreement.
19. Assianment and Subletting. SOTA shall not assign or sublet this agreement
without prior written approval of the City.
20. Entire Agreement. This constitutes the whole agreement between the parties,
and may be modified in writing only, duly signed by the parties.
Dated, this Z— � _— day of May, 2025.
SUMMER OF THE
ARTS, INC.
r
By. Lisa J. B4Fhes, Executive Director
THE CITY OF IOWA CI
B �deoff Fruin, City Manager
Approved b
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City Attorneys Office
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EXHIBIT
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2025 Iowa City Jazz Festival x�
Beverage Garden Map w
120' wsglcrwe aroxae
i Entert
Legend
- 6 ft.Tables (12)
S ft. Tables (2)
X High Tops(9)
■ Portos
■ Recycling
x x x mm
mm
X x X - -
X X X ■■
Clinton St
1 Oxl 0 ft. Entrance Tent
Sidewalls in Serving
Nightime Sidewalls
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Bike Rack Barricades
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EXHIBIT C
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.d.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution approving, authorizing and directing the Mayor to execute and the City Clerk to
attest Amendment No. 2 to the May 2, 2023 Consultant Agreement by and between the City of
Iowa City and Strand Associates, Inc., of Madison, Wisconsin to provide bidding and
construction phase services for the Wastewater Treatment Facility Digester Complex
Rehabilitation - Phase 1 Project.
Prepared By: Ben Clark — Senior Engineer
Reviewed By: Tim Wilkey — Wastewater Superintendent
Jason Havel — City Engineer
Ron Knoche — Public Works Director
Geoff Fruin — City Manager
Fiscal Impact: $2,080,000 available in the Digester Complex
Rehabilitation fund #V3151 and in the Wastewater Digester
Gas Improvements fund #V3184.
Staff Recommendation: Approval
Attachments: Resolution
Agreement
Executive Summary:
This agenda item authorizes an amendment to the Consultant Agreement for the Wastewater
Treatment Facility Digester Complex Rehabilitation - Phase 1 Project to include bidding -
related, construction -related, air permit assistance, and construction closeout services.
Background / Analysis:
The City entered into an Agreement on May 2, 2023, with the Consultant to provide design
engineering services to rehabilitate existing digester equipment, provide new struvite
management processes and design a new high strength waste receiving facility.
The Agreement was amended (Amendment No. 1) on November 21, 2023, to include design
engineering services and equipment procurement -related services for renewable natural gas
(RNG) equipment and systems.
The Project includes replacing the existing tank insulation, tank seals, gas safety equipment,
and monitoring instrumentation. It also includes replacing the existing draft tube mixing
systems with linear motion mixing systems, a new sludge screening process, a new chemical
storage building and process for struvite management, a new high strength waste receiving
and storage facility, and the installation of equipment to produce and distribute pipeline
quality gas to be sold on the renewable fuel market.
Prepared by: Ben Cla*, Engineering Division, 410 E. Washington St., Iowa City, IA 52240, (319) 356-5436
Resolution No. 25-113
Resolution approving, authorizing and directing the Mayor to
execute and the City Clerk to attest Amendment No. 2 to the
May 2, 2023 Consultant Agreement by and between the City of
Iowa City and Strand Associates, Inc., of Madison, Wisconsin to
provide bidding and construction phase services for the
Wastewater Treatment Facility Digester Complex Rehabilitation
— Phase 1 Project.
Whereas, the City entered into an Agreement on May 2, 2023, with the Consultant to provide
design engineering services for the Digester Complex Rehabilitation Project; and
Whereas, the City entered into Amendment No. 1 on November 21, 2023, with the Consultant to
provide design engineering services and equipment procurement -related services to add
renewable natural gas (RNG) equipment and systems into the current Project; and
Whereas, the City now desires to amend the Agreement to include additional services outside
the scope of the original Agreement and Amendment No. 1, and will require additional time and
compensation to complete the services; and
Whereas, the additional services required include bidding -related services, construction -related
services, air permit assistance services, and construction closeout services; and
Whereas, the Consultant (or its subcensullants) have the expertise to complete the services
included in this Amendment No. 2; and
Whereas, Consultant is willing to perform these additional services in exchange for a revised
time of completion and additional compensation; and
Whereas, funds are available in the Digester Complex Rehabilitation fund #V3151 and in the
Wastewater Digester Gas Improvements fund #V3184
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The Consultant Agreement Amendment No. 2 attached hereto is in the public interest, and
is approved as to form and content.
2. The Mayor and City Clerk are hereby authorized and directed to execute the attached
Amendment No. 2.
3. The City Manager is authorized to execute amendments to the Consultant Agreement as
they may become necessary.
Passed and approved this 20th day of Ma 2025
Mayor pro Te
Resolution No. 25-113
Page 2
Approved by
Attest:
Dej5uty City Clerk City Attor eys Office
(Liz Craig - 05/14/2025)
It was moved by Moe and seconded by Harmsen the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays: Absent:
X Alter
X
Bergus
x_
Harmsen
x
Moe
_
x
Seth
x
Teague
x
Weilein
Consultant Agreement
Amendment No. 2
This Amendment No. 2 to the May 2, 2023, Consultant Agreement for the Digester Complex
Rehabilitation Project (the "Project"), by and between the City of Iowa City, a municipal corporation,
hereinafter referred to as the City and Strand Associates, Incothda f MWisconsin, adison, hereinafter
referred to sit the Consultant is made and entered into this _ dayof
MaY Whereas, the City entered into an Agreement on May 2, 2023, with the Consultant to provide design
engineering services for the Digester Complex Rehabilitation Project; and
Whereas, the City entered into an Amendment NO. 1 on November 21, 2023, with the Consultant
to provide design engineering services and equipment procurement -related services to add
renewable natural gas (RNG) equipment and systems into the current Project; and
Whereas, the Consultant (or its subconsultants) have the expertise to complete the services
included in this Amendment and
Whereas, the additional services required to add the bidding -related services, construction -related
services, air permit assistance services, and construction closeout services to the Project is outside
the scope of the original Agreement and Amendment No. 1 and will require additional time and
compensation to complete the services; and
Whereas, the City now desires to amend the Agreement to integrate these additional services into
the Project; and
Whereas, Consultant is willing to perform these additional services in exchange for a revised time
of completion and additional compensation; and
Whereas, funds are available in the Digester Complex Rehabilitation fund #V3151 and in the
Wastewater Digester Gas Improvements fund #V3184.
Now Therefore, it is agreed by and between the parties hereto that the Agreement is hereby
amended as follows:
Scope of Services is hereby amended as follows:
ADD the following:
"Biddinc-Related Services
1. Prepare the Notice to Bidder to be issued by City.
2. Provide City with Bidding Documents electronically.
3. Conduct one prebid meeting at Citys Wastewater Treatment Facility (W WTF) with City and
prospective bidders. Conduct site walkthrough of the WWTF Project area with City and
prospective bidders. Provide a sign -in sheet to prebid meeting attendees.
4. Respond to questions from prospective bidders.
5. Prepare and issue addenda, it necessary.
Page 1 of 5
a. Attend virtual bid opening, tabulate and analyze bid results, and assist City in the award of
the Construction Contract.
7. Prepare two sets of Contract Documents for signature.
Construction -Related Services
1. Contract Administration
a. Provide three hard copy sets of Contract Documents, and one copy in electronic
portable document format. Incorporate addenda into the conformed Contract
Documents.
b. Review contractor's preliminary progress schedule, preliminary schedule of
submittals, and preliminary schedule of values for conformance with the Contract
Documents.
C. Attend one preconstruction conference at the W WTF with project manager and a
project engineer. Other project engineers will attend the meeting virtually. Prepare
and distribute agenda and minutes to attendees.
d. Attend up to 108 weekly construction progress meetings virtually with project
manager and one project engineer. Prepare and distribute agenda and minutes for
each meeting to attendees.
e. Attend up to 35 monthly construction progress meetings at the W WTF with project
manager and a project engineer with other project engineers attending meeting
virtually, If necessary. Prepare and distribute agenda and minutes for each meeting
to attendees.
f. Attend one cast -in -place concrete pre -installation meeting, one precast concrete
hollow core planks pre -installation meeting, one masonry pre -installation
meeting, one spray -applied digester cover roofing pre -installation meeting, one
tank lining system pre -installation meeting, and one pre -painting meeting at the
W WTF with one project engineer with other project engineers attending meeting
virtually, if necessary. Attend one process control systems pre -submittal
conference virtually.
g. Review contractor's progress schedule each month for up to 36 months. Review up to
36 contractor payment applications. Consultants review of payment applications from
contractor(s) will not impose responsibility to determine that title to any of the work has
passed to City free and clear of any liens, claims, or other encumbrances. Any such
service by Consultant will be provided through an amendment to this Agreement.
h. Review and respond to up to 150 contractor requests for information.
I. Prepare up to 100 cost proposal requests, work change directives, and change
orders for possible changes in scope of work and provide to City and the contractor.
Review contractor -provided responses to cost proposal requests and work change
directives and provide responses, as appropriate. Discuss responses with City.
Page 2 of 5
I. Review shop drawing and manufacturer -provided operation and maintenance
submittals. Review includes up to three submittals of shop drawings and one
submittal of manufacture -provided operation and maintenance manuals. Shop
drawings exceeding three submittals will be reviewed on an hourly rate basis plus
expenses in accordance with the Contract Documents. It is anticipated charges
incurred will be billed to City who will be reimbursed by contractor via change order.
k. Review of unsolicited media including but not limited to photos, videos, and drone
footage provided by the City or contractor is not included.
I. Visit W WTF construction site up to 30 times to observe construction progress with
two engineers per visit. Site visits may be attended by either the project manager,
project engineer, electrical engineer, structural, or mechanical engineer as
appropriate. In furnishing observation services, Consultant's efforts will be directed
toward determining for City that the completed project will, in general, conform to
the Contract Documents; but Consultant will not supervise, direct, or have control
over the contractor's work and will not be responsible for the contractor's
construction means, methods, techniques, sequences, procedures, or health and
safety precautions or programs, or for the contractor's failure to perform the
construction work in accordance with the Contract Documents.
M. Conduct one partial utilization review for the waste gas burner, one partial utilization
review forthe Sludge Conditioning Building, and one substantial completion reviewfor
the remainder of the project with City and conbactor at the W WTF. Prepare list of items
to be completed or corrected for two partial utilizations and substantial completion.
n. Conduct three final completion reviews with City and contractor to review the list of
items to be completed or corrected by contractor.
o. Conduct surveying to prepare a Federal Emergency Management Agency (FEMA)
National Flood Insurance Program Elevation Certificate for the new structures at the
W WTF. Prepare and submit Elevation Certificate to FEMA.
2. Start -Up and Training
a. Provide start-up assistance including consultation with City, observation of start-up
and training by equipment manufacturers, response to operators' inquiries, and
attendance at classroom training sessions. One Consultant to attend up to 25
equipment manufacturer led trainings at the W WfF.
b. Provide three on -site classroom training sessions for City describing operational
overview of the high strength waste management process, sludge screening
process, and the digester gas/RNG process at the W WTF.
3. Supervisory Control and Data Acquisition (SCADA) Services
a. Attend contractor -led factory -acceptance testing at the contractors facility for new
programmable logic controller (PLC) -based control panels provided by the
contractor. Factory -acceptance testing will include testing PLC inputs and outputs
and their representation on the new SCADA System HMI graphics, and new process
control logic. This includes up to two five-day trips to contractor's testing facility with
one travel day per trip.
Page 3 of 5
b. Attend contractor -led site -acceptance testing at the WWTF for new PLC -based
control panels provided by the contractor. She -acceptance testing will include testing
PLC inputs and outputs and new process control logic. This includes up to six trips
to the W WTF with 14 days total onsite at the W WTF.
4. Operation and Maintenance (O&M) Manual
a. Prepare an O&M Manual for the project, including written narratives, figures, and
descriptive tables of the newand modeled 6gesterprocesses. Submitto Cityelearonimlly.
b. Organize one set of hard copy equipment O&M manuals provided by equipment
manufacturers from the contractor and turn these manuals over to City prior to final
completion of the project as one deliverable.
Record Drawings
Prepare record drawings based on contractors markup drawings. Record drawings
will be transmitted to City electronically as a portable document format file and as
AutoCAD and Revit files. Consultant is providing drafting services for record
drawings only based on the records presented to Consultant by contractor and City.
Consultant will not be liable for the accuracy of the record drawing information
provided by contractor and City.
Air Permitting Assistance Services
Prepare an air permit application for the new waste gas burner and submit to the Iowa
Department of Natural Resources.
If. Time of Completion is hereby amended as follows. The table included in the original
Agreement shall be replaced with the following table:
'Scope Item
Anticipated Milestone Completion Date
Kickoff Meeting
Completed
Thirty Percent Desi n Documents to City
Completed
Thirty Percent Design Review Meeting
Completed
RNG Equipment Pre -procurement Bidding
Com eted
Sixty Percent Design Documents to City
Completed
Sixty Percent Design Review Meeting
Completed
Ninety Percent Desi n Documents to City
Comp4eted
Ninety Percent Design Review Meeting
Completed
IDNR Submittal
Completed
Final Bidding Documents to City
ril 2025
Open Bids
i July
2025
City issues Notice to Proceed on Construction
Project
Au ust 2025
Substantial Com lotion of Construction Project
ri12028
Final Completion of the Construction Project
_
July 2026
Ill. Compensation for Services
Consultant shall be compensated for the Amendment No. 2 services on an hourly rate basis in
accordance with Hourly Billing Rate Schedule of the Consultant Agreement an amount not to
exceed $2,080,000.
The total compensation for seances, as herein amended, shall not exceed $5,061,900.
Page 4 of 5
IV. All other provisions of the May 2, 2023, Consultant Agreement not specifically amended
herein shall remain in full force and effect.
FOR THE CITY FOR THE CONSULTANT
CITY OF IOWA CITY STRAND ASSOCIATES, INC
By' By. oseph M. Bunker
Title: Ma [o Tem Title: Corporate Secretary
Date: May 20 2025 Date: �S
ATTEST: ATTEST:
Approved by:
City A rrney's Office
Date:
Page 5 of 5
Item Number: 6.e.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution authorizing the Mayor to sign and the City Clerk to attest the FY 2026 28E
Agreement between the City of Iowa City and Johnson County for the Mobility Coordinator
position.
Prepared By: Darian L. Nagle-Gamm, Director of Transportation Services
Reviewed By: Geoff Fruin, City Manager
Fiscal Impact: $44,075
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Resolution
28E Agreement
Executive Summary:
This is a resolution to continue the joint funding agreement with Johnson County Social
Services for the Mobility Coordinator position. The Mobility Coordinator provides
transportation and mobility referrals, education, and community outreach in Iowa City and
across the metro area.
Background / Analysis:
The Mobility Coordinator's goals are to increase awareness of the metro area public transit
system and improve mobility for the elderly, low-income, persons with disability or medical
issues, and the mobility challenged.
The Mobility Coordinator helps residents reach their destinations by providing information on
community transportation options, offering trip planning and education, and transit system
training.
The position is jointly funded by Johnson County (50%), Iowa City (35%), and Coralville
(15%). The total costs of the position including salary, benefits, supplies, and mileage are
divided amongst the three entities. Iowa City's total contribution in FY26 is $44,075
Item Number: 6.f.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution authorizing the Mayor to sign and the City Clerk to attest the FY2026 — FY2028
Agreement between the City of Iowa City and the City of University Heights for the provision of
transit service within the corporate limits of University Heights.
Prepared By: Darian L. Nagle-Gamm; Director of Transportation Services
Reviewed By: Geoff Fruin, City Manager
Fiscal Impact: University Heights agrees to pay the City of Iowa City
$52,946.80 in FY26, $58,758.33 in FY27, and $64,569.86
in FY28 for the continued provision of transit service.
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Resolution
28E Agreement
Executive Summary:
The City of Iowa City has historically provided transit service for the City of University Heights
utilizing an annual 28E Agreement. This resolution will establish a 3-year agreement to
continue service from FY26 until FY28 for a contracted payments of $52,946.80 in FY26,
$58,758.33 in FY27, and $64,569.86 in FY28.
Background / Analysis:
University Heights has contracted with the City of Iowa City for transit services since the
1970's. Currently, Iowa City Transit provides service to University Heights via the 10 - West
Iowa City and the 8 - Oakcrest routes, serving the Melrose Avenue and Sunset Street
corridors with 78 trips per day.
The agreement for transit service was formerly negotiated utilizing a percentage increase
over the previous year's contract, using the U.S. Bureau of Labor Statistics' Consumer Price
Index (CPI), however the annual increases have not reflected the increase in operational
costs of the transit service provided.
This updated three-year agreement reflects a negotiated amount derived from University
Heights' percentage of Iowa City Transit's service area population applied to the most recent
fiscal year's (FY24) total annual operating costs. This population percentage was established
using the 5-year American Community Survey data and the negotiated amount calculated by
the Metropolitan Planning Organization of Johnson County. The resulting increase in the
contracted amount will be applied incrementally over the three-year term.
Per this agreement, University Heights agrees to pay $52,946.80 in FY26, $58,758.33 in
FY27, and $64,569.86 in FY28 for contracted fixed route transit services for the next three
fiscal years.
Item Number: 6.g.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution supporting the submission of an Iowa Economic Development Authority (IEDA)
application to the Workforce Housing Tax Credit Program by Rollos Gatos, LLC.
Prepared By: Tracy Hightshoe, NDS Director
Reviewed By: Geoff Fruin, City Manager
Fiscal Impact: Up to $14,000 from 31610900 448070 Economic
Development Assistance Funds
Staff Recommendation: Approval
Commission Recommendations: NA
Attachments: Preliminary Plans
Resolution
Executive Summary:
This resolution of support would commit the required minimum project match of $1,000 per
unit, or $14,000, to enable the Rollos Gatos, LLC application to be considered for Workforce
Housing Tax Credits by the Iowa Economic Development Authority (IEDA). The project
converts 20 boarding rooms into 14 studio apartments on the upper two floors of a downtown
historic building. This project aims to phase out non -conforming housing in favor of
sustainable, code -compliant development. City matching funds can be in the form of cash or
local property tax exemption, rebate, refund or reimbursement. By supporting the tax credit
application, the City will be allowing the developer to leverage significant state resources that
will otherwise go to projects outside of our community
Background / Analysis:
The Iowa Economic Development Authority (IEDA) provides tax benefits to developers to
provide housing in Iowa communities, focusing especially on those projects using
abandoned, empty or dilapidated properties. To be eligible, projects must meet one of four
criteria:
1) Located on a grayfield or brownfield site;
2) Repair or rehabilitation of dilapidated housing stock;
3) Upper story housing development; or
4) New construction on a greenfield site.
Housing developers are eligible to receive a refund of state sales, service or use taxes paid
during construction and an investment tax credit up to a maximum of 10% of the investment
directly related to the construction or rehabilitation of housing. There are no rental restrictions
or income limitations for the assisted dwelling units, however the average project cost per unit
may not exceed $230,000 for a multi -family project.
To date, the City has approved requests for resolutions of support and local matching funds
totaling $876,000 for this IEDA program; however the City has only paid out $385,000 in
matching funds. Projects have three years from the date of the tax credit award to complete
the project before the award expires. The City pays the local match once the State verifies
project completion and all program requirements are met.
Peter Byler, Managing Member of Rollos Gatos, LLC, is the developer of the project. They
propose to rehabilitate the historic mixed use property at 203 N. Linn Street/222 E. Market St.
Currently the 20 boarding rooms share two bathrooms, but they have no access to kitchen
facilities. Boarding rooms without kitchens do not meet contemporary expectations for safe,
independent living. Residents often rely on unsafe alternatives such as hot plates or
microwave -only cooking. The renovated studio apartments will have their own kitchen,
bathroom, laundry facilities, and utilize geothermal heating and cooling. These
improvements align with modern housing codes and support long-term livability. Floor plans
of the upper two residential floors are attached for review.
The developer reports that the target market for these units are people who live and work in
the Northside and Downtown. The rent range is anticipated to be under $900 a month, with
the hope of renting below $800, plus electricity, depending on final renovation costs and tax
credits received. There are 12 roomers who will be impacted. The developer states they have
secured equivalent housing within one block of the building for all tenants who wish to stay
nearby. The developer states they will be financially assisting tenants with moving, utilities
and rent differences. Their hope is that some of the tenants can move back once the
renovations are complete.
The developer purchased the building and also plans to renovate the first floor commercial
space to accommodate two new tenants. Their application to add an exterior entrance on
Linn St. was approved by the Historic Preservation Commission on May 8, 2025.
Staff recommends approval of a resolution of support and committing the required minimum
project match of $14,000 in order for the application to be considered for Workforce Housing
Tax Credits. If the City Council approves this request, the application to IEDA will be the
responsibility of the developer, Rollos Gatos, LLC.
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Prepared by Tracy Hightshoe, NDS Director, 410 E. Washington St., Iowa City, IA 52240: 319-356-52"
Resolution No. 95-116
Resolution supporting the submission of an Iowa Economic Development
Authority (IEDA) application to the Workforce Housing Tax Credit Program
by Rollos Gatos, LLC.
Whereas, Rollos Gatos, LLC proposes converting 20 boarding rooms into 14 studio apartments
and investing $1,400,000 at the property locally known as 203 S. Linn Street and 222 E. Market
Street, Iowa City, Iowa; and
Whereas, the proposed project will support the City's efforts to phase out partially vacant, non-
conforming housing on the upper two floors of a mixed use historic building in favor of
sustainable, code -compliant housing development for a growing workforce within the
community; and
Whereas, Rollos Gatos, LLC has committed a significant amount of private financing to the
project; and
Whereas, the City of Iowa City has committed up to $14,000 in local general funds to assist the
project; and
Whereas, Rollos Gatos, LLC's application to the Workforce Housing Tax Credit Program will
provide necessary tax credits and other benefits which will directly contribute to the success of
the development; and
Whereas, the City supports said application to the Workforce Housing Tax Credit Program by
Rollos Gatos, LLC
Now, Therefore, be it resolved by the Iowa City City Council that:
The City of Iowa City hereby supports the submission of an Iowa Economic
Development Authority application to the Workforce Housing Tax Credit Program by
Rollos Gatos, LLC, as referred to in the preamble hereof, for necessary tax credits and
other benefits directly contributing to the success of the development at 203 S. Linn
Street and 222 E Market Street.
Passed and approved this 20tt
Attest:
D puty City Clerk
Resolution No. 25-116
Page No. 2
It was moved by MOe and seconded by
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x Alter
x
Bergus
x
Harmsen
x
Moe
X
Salih
x
Teague
x
Weilein
Harmsen ,thatthe
Item Number: 6.h.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a
contract for construction of the 2025 Pavement Rehabilitation Project.
Prepared By: Justin Harland — Senior Engineer
Reviewed By: Jason Havel — City Engineer
Ron Knoche — Public Works Director
Geoff Fruin — City Manager
Fiscal Impact: $2,483,512.75 available in the Pavement Rehabilitation
account #S3824.
Staff Recommendation: Approval
Attachments: Resolution
Executive Summary:
This project generally consists of asphalt resurfacing and chip sealing streets throughout
Iowa City. This project includes resurfacing HMA streets with 3" HMA pavement, full depth
HMA and PCC patching, sanitary sewer manhole replacement, storm intake top replacement,
PCC sidewalk, ADA curb ramp improvements and chip seal surface rehabilitation at various
locations.
One (1) bid was submitted prior to the May 7, 2025 deadline:
Bidder Name
City
Bid
LL Pelling
North Liberty, IA
$2,483,512.75
Engineer's Estimate
$2,458,000.00
L.L. Pelling Company of North Liberty, Iowa submitted the lowest responsive, responsible bid
of $2,483,512.75. Staff recommends awarding the Contract for the 2025 Pavement
Rehabilitation Project to L.L. Pelling Company.
Background / Analysis:
The 2025 Pavement Rehabilitation Project includes work at the following locations:
Asphalt Resurfacina:
S Dubuque Street
E College Street
Glendale Road
Ridgeway Drive
N Lowell Street
Hawthorne Street
Ashwood Drive
S Lowell Street
Chip Seal:
Nursery Lane
Taft Avenue
Grove Street
Hutchinson Avenue
Dodge Street Court
Conklin Lane
Project Timeline:
Construction Dates: June - August 2025
Pm,bar by: Justin Hatlantl, Engineenng Division, 41D E. Washington SL, Iowa City, IA 52240 (319)35&5154
Resolution No. 95-117
Resolution awarding contract and authorizing the Mayor to sign
and the City Clerk to attest a contract for construction of the
2025 Pavement Rehabilitation Project.
Whereas, L.L. Palling Company of North Liberty, Iowa has submitted the lowest responsive,
responsible bid of $2,483,512.75 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 L.L.
Pelling Compnay, 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 20th day of May 2025
Mayor Pro Tem
Appro ed by
Attest: /
D puty City Clerk City AttomeV s Office
(Liz Craig — 05/13/2025)
It was moved by MOe and seconded by
adopted, and upon roll call there were:
Ayes: Nays:
xarmsen the Resolution be
Absent:
x Alter
_ Bergus
Harmsen
Moe
Salih
_ Teague
Weilein
Item Number: 6.i.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution accepting payment of $300.00 civil penalty and waiver of right to hearing from
Casey's #2781.
Prepared By: Rebecca Passavant, City Attorney's Office Administrative
Secretary
Reviewed By: Jennifer L. Schwickerath, Assistant City Attorney
Fiscal Impact: No impact
Staff Recommendation: Approval
Attachments: Resolution Accepting 1 st Offense Civil Penalty
Executive Summary:
This Resolution accepts a waiver of right to hearing and payment of a $300.00 civil penalty by
Casey's #2781. The civil penalty is required by Iowa Code Section 453A.22(2) due to a first
instance of an employee selling or providing tobacco to a minor within a two-year period.
UJ
Prepared by: lennifer Schwickemth, Asst. City Attomey, 410 E. Washington St., Iowa City, IA 52244, 319-356-5030
Resolution number: 25-118
Resolution accepting payment of $300.00 civil penalty and
waiver of right to hearing from Casey's #2781
Whereas, on January 31, 2025, an employee of Casey's Marketing Company, dba
Casey's #2781, 1410 Willow Creek Drive, Iowa City, violated Iowa Code §453A.2(1) by
selling or providing tobacco, tobacco products or cigarettes to a minor and this was the
first such violation by one of its employees in a two-year period; and
Whereas, at the time of the violation, Casey's #2781 was operating under a retail
cigarette permit issued by the City of Iowa City; and
Whereas, pursuant to Iowa Code §453A.22(2), an establishment which holds a retail
cigarette permit is subject to a civil penalty of $300.00 as a result of its employee violating
Iowa Code §453A.2(1), for a first violation within a two-year period; and
Whereas, Casey's #2781 has waived its right to the hearing required by Iowa Code
§453A.22(2) and accepted responsibility for its employee's violation of Iowa Code
§453A.2(l) by paying a $300.00 civil penalty to the City Clerk of the City of Iowa City.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that the
City Council should accept the waiver of right to hearing and payment of $300.00 civil
penalty on behalf of Casey's #2781.
Be it further resolved, that the City Clerk will forward this Resolution to the City
Attorney's Office, which will then provide a copy of the same to the retail cigarette permit
holder via regular mail sent to the permit holders place of business as it appears on the
application for a retail cigarette permit.
Passed and approved this20ctyay of May 2025,
Mayor To em
Approved by
Attest:
puty City Clerk City Attorney' Office - 05/15/2025
Resolution No. 25-I18
Page 2
It was moved by Moe and seconded by Ha—sen the
Resolution be adopted, and upon roll call there were:
Ayes: Nays:
Absent:
x Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
—77-
Weilein
Item Number: 6.j.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution accepting payment of $1,500.00 civil penalty and waiver of right to hearing from
Casey's #4367.
Prepared By: Rebecca Passavant, City Attorney's Office Administrative
Secretary
Reviewed By: Jennifer Schwickerath, Assistant City Attorney
Fiscal Impact: No impact
Staff Recommendation: Approval
Attachments: Resolution Accepting 2nd offense Civil Penalty
Executive Summary:
This Resolution accepts a waiver of right to hearing and payment of a $1,500.00 civil penalty
by Casey's #4367. The civil penalty is required by Iowa Code Section 453A.22(2) due to a
second instance of an employee selling or providing tobacco to a minor within a two-year
period.
Prepared by: Jennifer Schwickerath, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52244, 319-3565030
Resolution number: 29-11 q
Resolution accepting payment of $1,500.00 civil penalty and waiver of
right to hearing from Casey's #4367
Whereas, on January 13, 2025, an employee of Casey's Marketing Company, dba Casey's #4367,
2410 Mormon Trek Boulevard, Iowa City, violated Iowa Code §453A.2(1) by selling or providing
tobacco, tobacco products or cigarettes to a minor and this was the second such violation by one of
its employees in a two-year period; and
Whereas, at the time of the violation, Casey's #4367 was operating under a retail cigarette permit
issued by the City of Iowa City; and
Whereas, pursuant to Iowa Code §453A.22(2), an establishment which holds a retail cigarette permit
is subject to a civil penalty of $300.00 as a result of its employee violating Iowa Code §453A.2(1),
after a hearing and proper notice, and the civil penalty for a second violation within a two-year period
is, at the retailer's option, $1,500.00 or a thirty -day permit suspension; and
Whereas, Casey's #4367 has waived its right to the hearing required by Iowa Code §453A.22(2)
and accepted responsibility for its employee's violation of Iowa Code §453A.2(1), by paying a
$1500.00 civil penalty to the City Clerk of the City of Iowa City.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that the City
Council should accept the waiver of right to hearing and payment of $1,500.00 civil penalty on
behalf of Casey's #4367.
Be it further resolved, that the City Clerk will forward this Resolution to the City Attorney's Office,
which will then provide a copy of the same to the retail cigarette permit holder via regular mail sent
to the permit holder's place of business as it appears on the application for a retail cigarette permit.
Passed and approved this 20tbay of May , 2025.
Mayor Pro Tern
Approved by
ccAttest: /
D u City Clerk City Attorne� 025
Resolution No. 25-119
Page 2
It was moved by Moe and seconded by
adopted, and upon roll call there were:
Ayes: Nays:
x
x
x —
x
aarmsen the Resolution be
Absent:
Alter
Bergus
Harmsen
Moe
Salih
Teague
Weilein
Item Number: 6.k.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution accepting payment of $300.00 civil penalty and waiver of right to hearing from
Casey's #4369.
Prepared By: Rebecca Passavant, City Attorney's Office Administrative
Secretary
Reviewed By: Jennifer L. Schwickerath, Assistant City Attorney
Fiscal Impact: No impact
Staff Recommendation: Approval
Attachments: Resolution Accepting 1 st Offense Civil Penalty
Executive Summary:
This Resolution accepts a waiver of right to hearing and payment of a $300.00 civil penalty by
Casey's #4369. The civil penalty is required by Iowa Code Section 453A.22(2) due to a first
instance of an employee selling or providing tobacco to a minor within a two-year period.
(0,K
Prepared by: Jennifer Schwickemth, Amt. City Attomey, 410 E. Washington St., Iowa City, IA 52244, 319-356-5030
Resolution number: 25-120
Resolution accepting payment of $300.00 civil penalty and
waiver of right to hearing from Casey's #4369
Whereas, on January 31, 2025, an employee of Casey's Marketing Company, dba
Casey's #4369, 206 East Benton Street, Iowa City, violated Iowa Code §453A.2(1) by
selling or providing tobacco, tobacco products or cigarettes to a minor and this was the
first such violation by one of its employees in a two-year period; and
Whereas, at the time of the violation, Casey's #4369 was operating under a retail
cigarette permit issued by the City of Iowa City; and
Whereas, pursuant to Iowa Code §453A.22(2), an establishment which holds a retail
cigarette permit is subject to a civil penalty of $300.00 as a result of its employee violating
Iowa Code §453A.2(1), for a first violation within a two-year period; and
Whereas, Casey's #4369 has waived its right to the hearing required by Iowa Code
§453A.22(2) and accepted responsibility for its employee's violation of Iowa Code
§453A.2(1) by paying a $300.00 civil penalty to the City Clerk of the City of Iowa City.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that the
City Council should accept the waiver of right to hearing and payment of $300.00 civil
penalty on behalf of Casey's #4369.
Be it further resolved, that the City Clerk will forward this Resolution to the City
Attorney's Office, which will then provide a copy of the same to the retail cigarette permit
holder via regular mail sent to the permit holder's place of business as it appears on the
application for a retail cigarette permit.
Passed and approved this 20f$ay of May 2025.
Mayor pia Tem
Approved by
/
Attest:
p ty City Clerk City Attorneys Office - 05/15/2025
Resolution No. 25-120
Page 2
It was moved by Moe and seconded by
Resolution be adopted, and upon roll call there were:
Harmsen the
Ayes: Nays:
Absent:
x Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
_Y
Weilein
Item Number: 6.1.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution accepting payment of $300.00 civil penalty and waiver of right to hearing from Hy-
Vee Food Store #1.
Prepared By: Rebecca Passavant, City Attorney's Office Administrative
Secretary
Reviewed By: Jennifer L. Schwickerath, Assistant City Attorney
Fiscal Impact: No impact
Staff Recommendation: Approval
Attachments: Resolution Accepting 1 st Offense Civil Penalty
Executive Summary:
This Resolution accepts a waiver of right to hearing and payment of a $300.00 civil penalty by
Hy-Vee Food Store #1. The civil penalty is required by Iowa Code Section 453A.22(2) due to
a first instance of an employee selling or providing tobacco to a minor within a two-year
period.
Prepared by: Jennifer Schwickerath, Asst, City Attomey, 410 E. Washington St., Iowa City, IA 52244, 319-356-5030
Resolution number: 25-121
Resolution accepting payment of $300.00 civil penalty and
waiver of right to hearing from Hy-Vee Food Store #1
Whereas, on February 6, 2025, an employee of Hy-Vee Inc, dba Hy-Vee Food Store #1,
1720 Waterfront Drive, Iowa City, violated Iowa Code §453A.2(1) by selling or providing
tobacco, tobacco products or cigarettes to a minor and this was the first such violation by
one of its employees in a two-year period; and
Whereas, at the time of the violation, Hy-Vee Food Store #1 was operating under a retail
cigarette permit issued by the City of Iowa City; and
Whereas, pursuant to Iowa Code §453A.22(2), an establishment which holds a retail
cigarette permit is subject to a civil penalty of $300.00 as a result of its employee violating
Iowa Code §453A.2(1), for a first violation within a two-year period; and
Whereas, Hy-Vee Food Store #1 has waived its right to the hearing required by Iowa
Code §453A.22(2) and accepted responsibility for its employee's violation of Iowa Code
§453A.2(1) by paying a $300.00 civil penalty to the City Clerk of the City of Iowa City.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that the
City Council should accept the waiver of right to hearing and payment of $300.00 civil
penalty on behalf of Hy-Vee Food Store #1.
Be it further resolved, that the City Clerk will forward this Resolution to the City
Attorney's Office, which will then provide a copy of the same to the retail cigarette permit
holder via regular mail sent to the permit holder's place of business as it appears on the
application for a retail cigarette permit.
Passed and approved this20tibay of May 2025.
Mayor Pro Tem
Approved by
Attest: /
DPuCitey%erk City Attorney' ce --M/15/2025
Resolution No. 25-121
Page 2
It was moved by Noe and seconded by Narmsen the
Resolution be adopted, and upon roll call there were:
Ayes: Nays:
Absent:
x Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
Weilein
Item Number: Ta.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Motion setting a public hearing for June 3, 2025 to consider an ordinance conditionally
rezoning approximately 2.69 acres of land located North of E. Foster Rd. between N. Dubuque
Street and Prairie du Chien Rd. from High Density Single -Family Residential with a Planned
Development Overlay (OPD/RS-12) zone to High Density Single -Family Residential (RS-12)
zone. (REZ25-0005)
Attachments: REZ25-0005_Staff Report w Attachments
STAFF REPORT
To: Planning and Zoning Commission Prepared by: Madison Conley
Item: REZ25-0005 Date: May 7, 2025
Parcel: 1003127002
GENERAL INFORMATION:
Applicant/Owner: Foster Road Development, LLC
340 Herky St
North Liberty, Iowa 52317
(319) 351-2028
gstiltner(a�stillnerelectric.com
Contact Person: Ron Amelon
MMS Consultants, Inc
1917 South Gilbert St
Iowa City, Iowa, 52240
(319) 631-2703
r.amelon(a)mmsconsultants.net
Requested Action: Rezoning of 2.69 acres from High Density
Single -Family Residential with a Planned
Development Overlay (OPD/RS-12) zone to
High Density Single -Family Residential (RS-12)
zone.
Purpose: Rezoning that provides consistency with the
adjacent property to the west (parcel
1003201002). Rezoning is needed in order to
approve associated boundary line adjustment
(BLA25-0003) application.
Location: North of E. Foster Rd.
Size: 2.69 Acres
Existing Land Use and Zoning: High Density Single -Family Residential with a
Planned Development Overlay (OPD/RS-12)
Surrounding Land Use and Zoning: North: Vacant, OPD/RS-12
South: Vacant, High Density Single -Family
K
Comprehensive Plan:
Neighborhood Open Space District
North District Plan:
Public Meeting Notification:
File Date:
45 Day Limitation Period:
BACKGROUND INFORMATION:
Residential (RS-12)
East: Multi -Family Residential, OPD/RS12
West: Vacant, High Density Single -Family
Residential (RS-12)
Conservation Design & Public/Private Open
Space
N2
Conservation Design & Public/Private Open
Space
Property owners and occupants within 500' of
the property received notification of the
Planning and Zoning Commission public
meeting. A rezoning sign was posted along E.
Foster Rd. in front of the property.
April 4, 2025
June 19, 2025
The owner, Foster Road Development, LLC, is requesting approval for the rezoning of
approximately 2.69 acres of land from High Density Single -Family Residential with a Planned
Development Overlay (OPD/RS-12) zone to High Density Single -Family Residential (RS-12) zone
for a portion of the property located north of E. Foster Rd. (parcel 1003127002). Concurrently with
the rezoning, the owner has applied for a boundary line adjustment (BLA25-0003) to increase the
size of the adjacent property to the west (parcel 1003201002).
The subject property is a part of Lot 4 Forest Hill Estates Subdivision. The boundary line adjustment
request is to remove 2.69 acres from Lot 4 Forest Hill Estates and add it to the adjacent property to
the west. This land is currently vacant and has not been subdivided. These two properties have two
different zoning designations. To approve the boundary line adjustment, the zoning must be
consistent. Hence the request for the rezoning.
Staff has prepared the map below, Figure 1, that visually shows the parcels of land involved in the
proposed rezoning and boundary line adjustment.
Figure 1 shows the location of Lot 4 Forest Hill Estates outlined in red. The adjacent property to the
west is outlined in blue. Subdivision boundaries are show in purple. The area proposed to be
rezoned is generally shown in the black dashed line. This area is also the area proposed to be part
of the adjacent property to the west with the boundary line adjustment application.
3
Figure 1. Proposed Rezoning and Boundary Line Adjustment Area
ter.
In terms of case history, the subject property was rezoned and subdivided in 2017 and 2018. As of
today, some of the land has been developed. Here's a summary:
In 2017, a rezoning was approved for land located south of I-80 between Dubuque Street and
Prairie Du Chien Road (including the subject property). That rezoning rezoned 50.11 acres to
OPD/RS-12 zone and 3.18 acres to Commercial Office (CO-1) zone to allow for multifamily
residential and office development (REZ17-00017).
In 2018, the City adopted a resolution that approved the preliminary plat of Forest Hill Estates
(SUB18-00004 & Res. No 18-96) and the Final Plat for Forest Hill Estates was adopted in May 2018
(SUB18-00008). The Final Plat states that Lot 4 Forest Hill Estates is approximately 9.52 acres and
includes a conservation easement that applies to the subject property. See Attachment 2.
In 2024, a Major Site Plan for Lot 5 Forest Hill Estates was approved for a total of five buildings and
nineteen dwelling units. These units are currently under construction. The property directly south of
Lot 5 Forest Hill Estates is also concurrently involved in a separate rezoning (REZ25-0006) request
and boundary line adjustment (BLA25-0002) as part of the land swap between owners.
The applicant has indicated that the subject property is to be added to the adjacent property to the
west in Figure 1. The purpose of the proposed rezoning is to have consistent zoning on the adjacent
property to the west and to increase its size. That said, the subject property contains numerous
sensitive features and is located within a conservation easement. Therefore, the subject property
will not provide any additional development potential to the existing property.
A good neighbor meeting was not held for this rezoning. Attachment 3 includes the applicant
submittal materials such as the Rezoning Exhibit and the Applicant Statement which describes the
rationale behind the request.
CI
ANALYSIS:
Current Zoning: The subject property is currently zoned OPD/RS-12. The purpose of the RS-12
zone is to provide for development of single-family dwellings, duplexes and attached housing
units at a higher density than in other single- family zones. Properties zoned RS-12 allow
townhome style multi -family with up to six units attached. The maximum height in this zone is 35'.
An OPD was required due to impacts to sensitive areas and the mix of housing types proposed
which includes a large-scale multi -family building that provides housing to seniors, as well as
townhome style multi -family residential units.
Proposed Zoning: The applicant is proposing to rezone the subject property to the RS-12 zone.
The intent of the RS-12 zone is to provide housing opportunities for individual households,
duplexes, and attached housing units at a higher density compared to other single-family zones.
This zone also allows for some nonresidential uses that contribute to the livability of residential
neighborhoods, such as parks, schools, religious institutions, and daycare facilities.
Table 1 includes the minimum lot size required for detached single-family, duplexes, and attached
single-family housing types in the RS-12 zone.
Table 1. RS-12 Zoning Summary
Minimum Lot Size (Sq. Ft.
Detached single- family, including zero lot line
5,000
Duplexes
6,000
Attached single-family
3,000
Regardless of the zoning for the subject property no development will be allowed because it is
located within an existing conservation easement. The rezoning combined with the boundary line
adjustment do not change the land uses that are allowed on Lot 4 Forest Hill Estates Subdivision.
Lastly, since the proposed zoning does not follow existing parcel boundaries, staff is
recommending a condition that no building permit shall be issued for Lot 4 Forest Hill Estates
Subdivision until the City approves a boundary line adjustment that conforms to the proposed
zoning boundaries.
Rezoning Review Criteria:
Staff uses the following two criteria in the review of rezonings:
1. Consistency with the comprehensive plan;
2. Compatibility with the existing neighborhood character.
Compliance with Comprehensive Plan: The subject property is reviewed to the North District
Plan and the IC2030 Comprehensive Plan.
The Future Land Use Map of the North District Plan identifies the subject property as
appropriate for Conservation Design & Public/Private Open Space. The Conservation Design
land use designation is intended primarily for areas where sensitive environmental features or
the land topography limit the development potential of the land, and the Public/Private Open
Space designation indicates there is existing open space that is important for the protection of
sensitive natural features. Development may occur if development density is clustered away
and/or if a proposal meets the underlying zoning requirements in addition to the Iowa City
Sensitive Areas Ordinance.
The IC2030 Comprehensive Plan's Future Land Use Map identifies the subject property
appropriate for Conservation Design & Public/Private Open Space uses.
9
The proposed rezoning to RS-12 is consistent with the land use policy direction of the City's
adopted plans. The plans envision conservation design and open space. The existing
conservation easement will ensure the subject property will not be developed. Development to
the east of the subject property (on the remainder of Lot 4 Forest Hill Estates Subdivision) will
still be allowed pursuant to the approved rezoning (REZ17-00017).
Compatibility with Existing Neighborhood Character: The subject property is bordered by
RS-12 to the south and west, OPD/RS-12 to the north, and OPD/RS-12 to the east. A majority
of the land surrounding the subject property is currently vacant. Lot 5 Forest Hill Estates, which
is located south of the subject property and across E. Foster Rd. is currently under
development. Nineteen townhome style dwellings are currently being built at this location.
The subject property is part of Lot 4 Forest Hill Estates and zoned OPD/RS-12. This lot is 9.52
acres and the OPD plan approved a total number of 33 dwelling units. The proposed rezoning and
boundary line adjustment would reduce the size of Lot 4 by 2.96 acres resulting in a total acreage of
6.83. The development approved with the OPD plan could still move forward even with this rezoning
and boundary line adjustment. Also, the development potential of this area would remain unaffected
because the subject property is not considered developable land due to the conservation easement
and sensitive areas.
Environmentally Sensitive Areas: The subject property is in an existing conservation
easement that was established as part of the Final Plat and does not allow for development. The
Final Sensitive Areas Development Plan for Lot 4 Forest Hill Estates identifies regulated sensitive
features including critical and protected slopes, wetlands, and wooded areas.
NEXT STEPS:
Upon recommendation from the Planning and Zoning Commission, a public hearing will be
scheduled for consideration by the City Council.
STAFF RECOMMENDATION:
Staff recommends approval of REZ25-0005, a proposed rezoning to rezone 2.69 acres of the
property located north of E. Foster Rd. from OPD/RS-12 zone to RS-12 zone subject to the
following conditions:
a. In consideration of the City's rezoning of the subject property, Owners agree that no
building permit shall be issued for Lot 4 Forest Hill Estates Subdivision until the City
approves a boundary line adjustment for the subject property that conforms to the
zoning boundaries established by the rezoning ordinance to which this Agreement
is attached.
ATTACHMENTS:
1. Location & Zoning Map
2. Forest Hill Estates Final Plat
3. Applicant Submittal Materials
Approved by
Danielle Sitzman, AICP, Development Services Coordinator
Department of Neighborhood and Development Services
ATTACHMENT 1
Location & Zoning Maps
ATTACHMENT 2
Forest Hill Estates Final Plat
APPLICATION FOR FINAL PLAT
FOREST HILL ESTATES.
IN THE CITY OF IOWA CITY,
JOHNSON COUNTY, IOWA
LEGAL DESCRIPTION
A RESUBDIVISION OF AUDITOR'S PARCEL W AS RECORDED IN BOOK 32, PAGE 52, OF THE RECORDS
OF THE JOHNSON COUNTY, IOWA RECORDER'S OFFICE; AUDITOR'S PARCEL'B' AS RECORDED IN
BOOK 32, PAGE 53, OF THE RECORDS OF THE JOHNSON COUNTY, IOWA RECORDER'S OFFICE; A
PORTION OF THE NORTH HALF OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF
SECTION 3, TOWNSHIP 79 NORTH, RANGE 6 WEST, A TRIANGULAR PIECE LAYING IN THE NORTH
HALF OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 3, TOWNSHIP 79
NORTH, RANGE 6 WEST, AND SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 34,
TOWNSHIP 80 NORTH, RANGE 6 WEST, LYING SOUTH OF INTERSTATE 80, EXCEPT THAT LAND
CONVEYED TO THE CITY OF IOWA CITY FOR FOSTER ROAD AS RECORDED IN BOOK 3058 PAGE 10F
THE JOHNSON COUNTY, IOWA RECORDER'S OFFICE; THE PARCEL DESCRIBED IN TRUSTEE
WARRANTY DEED RECORDED IN BOOK 5696, PAGE 474 OF THE RECORDS OF THE JOHNSON
COUNTY, IOWA RECORDER'S OFFICE; PART OF SOUTHWEST QUARTER OF THE SOUTHEAST
QUARTER OF SECTION 34, TOWNSHIP 80 NORTH, RANGE 6 WEST, LYING SOUTH OF INTERSTATE 80;
PART OF -SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER SECTION 34, TOWNSHIP 80 NORTH,
RANGE 6 WEST, LYING SOUTH OF INTERSTATE 80; PART OF SOUTHEAST QUARTER OF THE
SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER SECTION 34, TOWNSHIP 80 NORTH, RANGE
6 WEST LYING SOUTH OF INTERSTATE 80; AND ALL OF THE PARCEL DESCRIBED IN WARRANTY DEED
4879-681 OF THE RECORDS OF THE JOHNSON COUNTY, IOWA RECORDER'S OFFICE; ALL LOCATED IN
THE CITY OF IOWA CITY, JOHNSON COUNTY, IOWA:
SAID PARCEL CONTAINS 50.15 ACRES, AND IS SUBJECT TO EASEMENTS AND RESTRICTIONS
OF RECORD.
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PROPERTY OWNER ATTORNEY:
JAMES D. HOUGHTON
ANDERSON AND HOUGHTON, LLP_.._._
568 HIGHWAY 1 WEST
IOWA CITY, IA 52246
319-351.-8600
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— -- --- — — — — — WHITE— / BK1002-60 J J '. FOND PROJECT NUMBER:
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I i s I I I L95 I o jTpFWA r / 4).� / CONSERVATION I FOUND IP ROD WPC
LOT 4 FOUND PIN EASEMENT ENGINEER:
I l I w I L4o3 STORMWATER / / MGM21 / �<�' / I I \�
I 9.52 AC. I w I w ItTo F MGMT ESMT �ry�/ / 1 /^� / 4OLAND
70,c�- IRON — L34
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I J w I J I I IU I STORM// SEWER 8/ AFOUND PIN / // I /� ��\
I / ¢ I I I¢ I I SANITARY I / / / / LOT 5 � EX. SANITARY �, _
SEWER ESMT FOU DIP �_
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[ c1 r %< �1o8SEWER ESMTt0 // // 6.53 AC/ ` `' - ENGINEERING
/ pie'? L BK300-412 \
UIs�� a 1 J~\
j STORMWATER Lno / j i �� % / } Goa G�ti/ / FOUND PIN /
MGMTESMT �� �♦ \ HBK ENGINEERING LLC .
I ;�-- LT2 'L �1 \ _ v , J 4112 / / , �� ', Y 509 S. GILBERT ST.
V68 L71 C
[ h i�2j G� 11 —61 G16 C4 CID L126 v / CONSERVATION ' / \� UNLESS NOTED OTHERWISE, ALL DIMENSIONS ARE IN FEET AND IOWA CITY, fA 52240
! L23 L110 / HUNDREDTHS
SET PIN G'{ i l N 4 EASEMENT PHONE: (319) 338-7557
IA I, FOUND PIN FOUND PIN �; / NOTES:
L28 1 l
/ — — 1. BASIS OF BEARINGS IS GPS MEASUREMENTS IN THE IOWA PLANE
STORMWATER plc �` / COORDINATE SYSTEM SOUTH ZONE NAD 83.
MGMT ESMT wy/ \ / G6 T r -- - - — -' STORM I I / 'FOUND IOWA DEPARTMENT
SEWER I / V IRON �/ 2, OUTLOT C TO BE DEDICATED TO THE CITY OF IOWA CITY FOR PUBLIC
\ / EASEMENT R.O.W. OF LABOR
t STORMWAT�R / / �I I — — — —L140 — — — — �{ h/ ' i ti D / ' REGISTRATION
y �„
L62 MGMT ESMT/ FOUND P / -` I / . / 3. SEE SHEET 2 FOR CONSERVATION EASEMENTS NO. 00527328
\�s L138 15 ° FOUND IR6N
[ / ��/. STORM WATER I r -DEC / /" /�
[ \ <so � / �ORM SEWER
I I MGMT ESMT;;�4. LOT CORNERS ARE g�" R>;BAR UNLESS OTHERWISE NOTED.
/ n<7�_ a _ROD YPC WWW.HBKENGINEERING.COM
....... --- L135
i --
L25 �ji L38 5. ERROR OF CLOSURE IS LESS THAN 1:10,000.
' �/ I EX SANITARY SEWER ESMT r ` ~ DEVELOPER:
FOSTER ROAD
_. DEVELOPERS, LLC
340 HERKY STREET
L9 L11 - NORTH LIBERTY, IA 52317
FOUNDIPOST FOUND RAIL 319-351-6788
FOUND RAIL
OWNER:
L7
_ -.- - � _ FOSTER ROAD
FOUND RAIL FOUND RAIL DEVELOPERS, LLC
FOUND RAIL s Lu
k - I
340 ERKY STREET
H TR T
rl A>U- NORTH LIBERTY, IA 52317
OUTLOT "All
FOUND RAILI 23,81 AC. 319-351-6788
r^
FO N PIN , ,S
L2 N 1 1 CORNER SEC 3 DATE SUBMITTED:
FCM MAY 29, 2018
DRAWING LOG
REV ISSUED FOR DATE
Ur Z /04/18
�- FOUND PIN 0 w. A FINAL PLAT SUBMITTAL o4
__.._. -. _....— — -..... -- --- _.. Ll64
I—
LU
w L27 r
1 ! w S a CORNER SEC 34
\ I I SCM
-------�-_ =------ - �--------------------------------------_------___ -----�
I i ,
I HEREBY CERTIFY THAT THIS LAND SURVEYING DOCUMENT WAS
PREPARED AND THE RELATED SURVEY WORK WAS PERFORMED BY ME
�tttt ti L r�1<<�T� OR UNDER MY DIRECT PERSONAL SUPERVISION AND THAT I AM A DULY
s IO'^144 �fop LICENSED LAND SURVEYOR UNDER THE LAM OF THE STATE OF IOWA.
Q
�3w-o x5 - 30 18
y CDTHOMAS E. SIGNATURE DATE
LLI • HAGENSEE C - 09889 THOMAS E. HAGENSEE
N :
LICENSE NUMBER 09889
.�.
17' MY LICENSE RENEWAL DATE IS DECEMBER 31,201 S.
PAGES OR SHEETS COVERED BY THIS SEAL:
l 11 I II I IVlilt"
ilt THIS SHEET ONLY
STANDARD LEGEND
Boundary or Property Line
Existing Lot Line, Internal
— —
Section Line
Right -of -Way
Easement (Existing)
—
Easement (Proposed)
— — — — —
Property Corner, Found
0
Property Corner, Set
O
Section Corner - Found
Recorded Dimensions
(R)
Measured Dimensions
(M)
INDEX LEGEND
Location:
PART OF SE 1/4 SEC. 34-T80N-R6W
PART OF SW 1/4 SEC. 34-T80N-R6W
PART OF NE 1/4 SEC. 3-T80N-R6W
IOWA CITY, JOHNSON, IOWA
Proprietor:
FOSTER ROAD DEVELOPERS
PO BOX 2208
IOWA CITY, IA 52244-2208
319-351-6788
Developer:
FOSTER ROAD DEVELOPERS, LLC
340 HERKSY STREET
NORTH LIBERTY, IA 52317
319-351-6788
Surveyor:
Thomas E. Hagensee
Company:
HBK Engineering, LLC
509 S. Gilbert St.
Iowa City, Iowa 52240
Return To:
Thomas Hagensee, PLS
509 S. Gilbert St,
Iowa City, Iowa 52240
PLAT/PLAN APPROVED
by the
City of Iowa City
CITY CLERK
DATE
UTILITY EASEMENTS, AS SHOWN HEREON, MAY OR MATK6T,
INCLUDE SANITARY
SEWER LINES AND/OR STORM SEWER LINES, AND/OR WATER LINES: SEE
CONSTRUCTION PLANS FOR DETAILS.
UTILITYEASEMENTS, AS SHOWN HEREON, ARE ADEQUATE
FOR THE INSTALLATION
AND MAINTENANCE OF THE FACILITIES REQUIRED BY THE FOLLOWING AGENCIES:
MiDAMERICAN ENERGY CO:
DATE
J .s C,,
d'
CENTURYLINK
DA�E
MEDIACOM
DATE
PROJECT MANAGER:
N. BETTIS
DRAWN BY: CHECKED BY:
QM AA
SHEET TITLE:
FINAL PLAT
SHEET:
PAGE 1
May 30, 2018 - 11:10am i:lProject11705401dwg1CAD1Plat1170540 - FP -Forest Hill Estates UPDATED.dwq
ATTACHMENT 3
Applicant Submittal Materials —Rezoning Exhibit & Applicant
Statement
LOCATION:
APPLICANT:
A PORTION OF LOT 4 OF "AMENDED" FOREST HILL ESTATES,
FOSTER ROAD DEVELOPERS LLC
LOCATED IN THE NORTHWEST QUARTER OF THE NORTHEAST
340 HERKY DRIVE
QUARTER OF SECTION 3, TOWNSHIP 79 NORTH, RANGE 6
NORTH LIBERTY, IOWA 52317
WEST, OF THE FIFTH PRINCIPAL MERIDIAN, IOWA CITY,
JOHNSON COUNTY, IOWA.
LAND SURVEYOR:
PROPRIETOR OR OWNER:
RICHARD R. NOWOTNY P.L.S
FOSTER ROAD DEVELOPERS LLC
MMS CONSULTANTS INC.
340 HERKY DRIVE
1917 SOUTH GILBERT STREET
NORTH LIBERTY, IOWA 52317
IOWA CITY, IOWA, 52240
PHONE: 319-351-8282
NORTH QUARTER CORNER
OF
SECTION 3-T79N-R6W
OF THE FIFTH P.M. _----
FOUND IDOT MONUMENT W\
1\2" PIN
BOOK 50 AT PAGE 146
0 10 25 50 75 100
GRAPHIC SCALE IN FEET
1 "=100'
REZONING EXHIBIT
A PORTION OF LOT 4 OF "AMENDED" FOREST HILL ESTATES
IOWA CITY, JOHNSON COUNTY, IOWA
O LUJ LL U OU II II FOUND 5\8" REBAR
(� W\ YELLOW PLASTIC
LS CAP 9889
N89°29'44"E 700.61'(M) 700.42'(R)
200.30' / .1 i
EX16FINO i
GREAT LAKES PIPELINE EASEMENT
---------- ----
POINT OF
LEGEND AND NOTES
0
— CONGRESSIONAL CORNER, FOUND
•
— PROPERTY CORNER(S), FOUND (as noted)
O
— PROPERTY CORNERS SET
(5/8" Iron Pin w/ yellow, plastic LS Cap
embossed with "MMS" )
®
— CUT „X„
— PROPERTY &/or BOUNDARY LINES
— CONGRESSIONAL SECTION LINES
— RIGHT—OF—WAY LINES
— CENTER LINES
— LOT LINES, INTERNAL
— LOT LINES, PLATTED OR BY DEED
— — — — — —
— — EASEMENT LINES, WIDTH & PURPOSE NOTED
— EXISTING EASEMENT LINES, PURPOSE NOTED
(R)
— RECORDED DIMENSIONS
(M)
— MEASURED DIMENSIONS
C22-1
— CURVE SEGMENT NUMBER
UNLESS NOTED OTHERWISE, ALL DIMENSIONS ARE IN FEET AND HUNDREDTHS
BEGINNING p I I DESCRIPTION - REZONING PARCEL ( OPD/RS-12 TO RS-12)
� NORTHWEST00
90 CORNER OF LOT
LOU t
BEGINNING at the Northwest Corner of Lot 4 of "Amended" Forest Hill Estates to Iowa City, Iowa, in
accordance with the Plat thereof Recorded in Plat Book 62 at Pages 109-110 of the Records of the
Johnson County Recorder's Office; Thence N89'29'44"E, along the North Line of said Lot 4, a distance
co
of 200.30 feet; Thence S02o 35i 04n E, 311.07 feet; Thence S13o 42i 14n W, 389.59 feet, to a Point on the
j
South Line of said Lot 4; Thence S89'56'41"E, along said South Line, 90.87 feet, to the Southwest
F0.0 OOo� ���� WPMCorner
thereof, Thence NO2'35'40"W, along the West Line of said Lot 4, a distance of 688.11 feet, to
REZONING PARCEL
--�
the POINT OF BEGINNING. Said Rezoning Parcel contains 2.69 Acres, and is subject to easements and
IN AGGGRDANOE WITH THE PLAT THEREOF REL,09P
restrictions of record.
(OPD/RS-12 TO IRS-12) IN PLAT f5OO(\ 62 AT PAGES 109-110 OF THE
RECORD OF THE JOHNSON COUNTY RECORDER" j
11 117,184 S F OFFIGE.
2.69 AC
I I I I I I
I I I I I I
I I I I I I I
I I I I I
EXISTING
CONSERVATION
EASEMENT
Ir_----
I I �
N ; I ,
��zv
o \
°
00
0
90.87'
S89°56'41"E / 248.02'(M) 247.95'(R)
I i l
LOCATION
e
1
T _ • ,i�
RA
M
S
CIVIL ENGINEERS
LAND PLANNERS
LAND SURVEYORS
LANDSCAPE ARCHITECTS
ENVIRONMENTAL SPECIALISTS
1917 S. GILBERT ST.
IOWA CITY, IOWA 52240
(319)351-8282
www. mmsconsultants. net
Date I Revision
04-02-2025 PER RRN REVIEW - RLW
REZONING EXHIBIT
IOWA CITY
JOHNSON COUNTY
I O WA
MMS CONSULTANTS, INC.
Date:
04-01-2025
De5l9ned by: Field Book No:
RLA 1401
Drawn by: Scale:
RLW 1 "=100'
Checked b6N Sheet No:
Project No:
IC 11619-002 of:
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M
M MMS Consultants, Inc.
Experts in Planning and Development Since 1975
April 4, 2025
City of Iowa City
Neighborhood and Development Services
410 E. Washington Street
Iowa City, IA 52240
Re: Portion of Lot 4 Forest Hill Estates
1917 S. Gilbert Street
Iowa City, Iowa 52240
319.351.8282
mmsconsultants.net
mms@mmsconsultants.net
On behalf of the applicant, MMS Consultants requests a rezoning of Auditor's Parcel
2025001. The auditor's parcel is a portion of Lot 4 Forest Hill Estates, Iocated on E.
Foster Road. The request is to change the zoning from OPD/RS12 to RS12.
The applicant wishes to add auditor's parcel 2025001 to parcel number 1003201002.
Auditor's parcel 2025001 is for a land swap with the adjacent property owner. Parcel
number 1003201002 is currently zoned RS12. The purpose of the rezoning is so the
property will not have two different zonings.
Respectfully submitted,
Ronald L. Amelon, PE
Item Number: 7.b.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Motion setting a public hearing for June 3, 2025 to consider an ordinance rezoning
approximately 2.69 acres of land located South of E. Foster Rd. between N. Dubuque Street
and Prairie du Chien Rd. from High Density Single -Family Residential (RS-12) zone to High
Density Single -Family Residential with a Planned Development Overlay (OPD/RS-12) zone.
(REZ25-0006)
Attachments: REZ25-0006_Staff Report w Attachments
STAFF REPORT
To: Planning and Zoning Commission
Item: REZ25-0006
Parcel: 1003126004
GENERAL INFORMATION:
Applicant/Owner:
Contact Person:
Requested Action:
Purpose:
Location:
Location Map:
Size:
Existing Land Use and Zoning:
Surrounding Land Use and Zoning:
Prepared by: Madison Conley
Date: May 7, 2025
Raymond Alberhasky
4756 Dingleberry Rd NE
Iowa City, Iowa 52240
(319) 330-5481
Ron Amelon
MMS Consultants, Inc
1917 South Gilbert St
Iowa City, Iowa, 52240
(319) 631-2703
r.amelon(a)mmsconsultants.net
Rezoning of 2.69 acres from High Density
Single -Family Residential (RS-12) zone to High
Density Single -Family Residential with a
Planned Development Overlay (OPD/RS-12)
zone.
Rezoning that provides consistency with Lot 5
Forest Hill Estates. Rezoning is needed in
order to approve associated boundary line
adjustment (BLA35-0002) application.
South of E. Foster Rd.
2.69 Acres
High Density Single -Family Residential (RS-12)
North: Multi -Family Residential, OPD/RS-12
South: Vacant, High Density Single -Family
Residential (RS-12)
East: Single -Family Residential, Low
K
Comprehensive Plan:
Neighborhood Open Space District
North District Plan:
Public Meeting Notification:
File Date:
45 Day Limitation Period:
BACKGROUND INFORMATION:
Density Single -Family Residential
(RS-5)
West: Vacant, OPD/RS-12
Conservation Design & Public/Private Open
Space
N2
Conservation Design & Public/Private Open
Space
Property owners and occupants within 500' of
the property received notification of the
Planning and Zoning Commission public
meeting. A rezoning sign was posted along E.
Foster Rd. in front of the property.
April 4, 2025
June 19, 2025
The owner is requesting approval for the rezoning of approximately 2.69 acres of land from High
Density Single -Family Residential (RS-12) zone to High Density Single -Family Residential with a
Planned Development Overlay (OPD/RS-12) zone for a portion of the property located south of E.
Foster Rd. (parcel 1003126004). Concurrently with the rezoning, the owner has applied for a
boundary line adjustment (BLA25-0002) to increase the size of Lot 5 Forest Hill Estates.
The subject property has not been subdivided. This area is planned to develop as the stormwater
system for the townhome development located on Lot 5 Forest Hill Estates. Additionally, adjacent
property south of the subject property has not been subdivided. The boundary line adjustment
request is to remove 2.69 acres from the current parcel (1003126004) and add it to Lot 5 Forest Hill
Estates. These two properties have two different zoning designations. To approve the boundary line
adjustment, the zoning must be consistent. Hence the request for the rezoning.
Staff has prepared the map below, Figure 1, that visually shows the parcels of land involved in the
proposed rezoning and boundary line adjustment.
Figure 1 shows the location of Lot 5 Forest Hill Estates outlined in red. The adjacent property to the
south is outlined in blue. Subdivision boundaries are show in purple. The area proposed to be
rezoned is generally shown in the black dashed line. This area is also the area proposed to join Lot
5 Forest Hill Estates with the boundary line adjustment application.
3
1. Proposed Rezoning and Boundary Line Adjustment Area
750
IF Forest Hill
Estates
713 do
p
o`'��t
623
fi51
657
677
-
695
711
A
r1613
1637 1611
.A &sp $48
834V
W.
$22 I 852
816
f 825 $31
E ,ass
• 813' 835 y
r845
15,52
v 1542f-
1534
1:
1545 r-r
.1541
1529
15-
1524 1518 152
A �Resubdi�ision
of Lot 34-Convvay,s 1
5ubdi�ision of Part 15�
of Section 3-79-6�
In terms of case history, Lot 5 Forest Hill Estates located directly north of the subject property, was
rezoned and subdivided in 2017 and 2018. As of today, some of the land has been developed.
Here's a summary:
In 2017, a rezoning was approved for land located south of 1-80 between Dubuque Street and
Prairie Du Chien Road. That rezoning rezoned 50.11 acres to OPD/RS-12 zone and 3.18 acres to
Commercial Office (CO-1) zone to allow for multifamily residential and office development (REZ17-
00017).
In 2018, the City adopted a resolution that approved the preliminary plat of Forest Hill Estates
(SUB18-00004 & Res. No 18-96) and the Final Plat for Forest Hill Estates was adopted in May 2018
(SUB18-00008). The Final Plat states that Lot 5 Forest Hill Estates is approximately 6.53 acres and
includes a conservation easement. See Attachment 2.
In 2024, a Major Site Plan for Lot 5 Forest Hill Estates was approved for a total of five buildings and
nineteen dwelling units. These units are currently under construction. The Major Site Plan shows a
variety of proposed and existing easements on the subject property. These easements include
storm water management, storm sewer, sanitary sewer and grading.
Additionally, Lot 4 Forest Hill Estates is also concurrently involved in a separate rezoning (REZ25-
0005) request and boundary line adjustment (BLA25-0002) as part of the land swap between
owners.
The applicant has indicated that the subject property is to be added to Lot 5 Forest Hill Estates,
shown in Figure 1. The purpose of the proposed rezoning is to have consistent zoning on Lot 5
Forest Hill Estates and to increase its size. That said, the subject property contains numerous
sensitive features and proposed and existing easements. Therefore, the subject property will not
provide any additional development potential to Lot 5 Forest Hill Estates.
CI
A good neighbor meeting was not held for this rezoning. Attachment 3 includes the applicant
submittal materials such as the Rezoning Exhibit and the Applicant Statement which describes the
rationale behind the request
ANALYSIS:
Current Zoning: The subject property is currently zoned RS-12. The purpose of the RS-12 zone
is to provide for development of single-family dwellings, duplexes and attached housing units at a
higher density than in other single- family zones. Properties zoned RS-12 allow townhome style
multi -family with up to six units attached. The maximum height in this zone is 35'. This zone also
allows for some nonresidential uses that contribute to the livability of residential neighborhoods,
such as parks, schools, religious institutions, and daycare facilities.
Proposed Zoning: The applicant is proposing to rezone the subject property to the OPD/RS-12
zone. The OPD was required for the Forest Hill Estates Subdivision due to impacts to sensitive
areas and the mix of housing types proposed which includes a large-scale multi -family building
that provides housing to seniors, as well as townhome style multi -family residential units. The
intent of the RS-12 zone is to provide housing opportunities for individual households, duplexes,
and attached housing units at a higher density compared to other single-family zones. The
rezoning combined with the boundary line adjustment do not change the land uses that have been
approved on the 2024 Major Site Plan for Lot 5 Forest Hill Estates.
Rezoning Review Criteria:
Staff uses the following two criteria in the review of rezonings:
1. Consistency with the comprehensive plan;
2. Compatibility with the existing neighborhood character.
Compliance with Comprehensive Plan: The subject property is reviewed to the North District
Plan and the IC2030 Comprehensive Plan.
The Future Land Use Map of the North District Plan identifies the subject property appropriate
for Conservation Design & Public/Private Open Space. The Conservation Design land use
designation is intended primarily for areas where sensitive environmental features or the land
topography limit the development potential of the land, and the Public/Private Open Space
designation indicates there is existing open space that is important for the protection of sensitive
natural features. Development may occur if development density is clustered away and/or if a
proposal meets the underlying zoning requiremnts in addition to the Iowa City Sensitive Areas
Ordinance.
The IC2030 Comprehensive Plan's Future Land Use Map identifies the subject property
appropriate for Conservation Design & Public/Private Open Space uses.
The proposed rezoning to OPD/RS-12 is consistent with the land use policy direction of the
City's adopted plans. The plans envision conservation design and open space. The subject
property would become a part of Lot 5 Forest Hill Estates which is clustering residential
development away from sensitive features and providing a mix of housing in Forest Hill Estates
Subdivision.
Compatibility with Existing Neighborhood Character: The subject property is bordered by
RS-12 to the south and west, OPD/RS-12 to the north, and RS-5 to the east. A majority of the
land surrounding the subject property is vacant, except for Lot 5 Forest Hill Estates, which is
currently under development. Nineteen townhome style dwellings are currently being built at this
location.
9
The proposed rezoning and boundary line adjustment would increase the size of Lot 5 Forest Hill
Estates by 2.69 acres resulting in a total acreage of 9.22. The OPD plan approved a total number
of nineteen dwelling units for this lot. The development approved with the OPD plan would not be
impacted with this proposed rezoning and boundary line adjustment. Additionally, the
development potential of Lot 5 Forest Hill Estates would remain unaffected because the subject
property is not considered developable land due to the sensitive areas and proposed and existing
easements located on the property.
Environmentally Sensitive Areas: Lot 5 Forest Hill Estates contains regulated sensitive
features including critical and protected slopes, wetlands, and wooded areas. A conservation
easement was established on Lot 5 as part of the final platting process. The Major Site Plan for
Lot 5 Forest Hill Estates shows that the subject property will be used to accommodate stormwater
for the development of townhomes.
NEXT STEPS:
Upon recommendation from the Planning and Zoning Commission, a public hearing will be
scheduled for consideration by the City Council.
STAFF RECOMMENDATION:
Staff recommends approval of REZ25-0006, a proposed rezoning to rezone 2.69 acres of the
property located south of E. Foster Rd. from RS-12 zone to OPD/RS-12 zone.
ATTACHMENTS:
1. Location & Zoning Map
2. Forest Hill Estates Final Plat
3. Applicant Submittal Materials
Approved by:
Danielle Sitzman, AICP, Development Services Coordinator
Department of Neighborhood and Development Services
ATTACHMENT 1
Location & Zoning Maps
0
0 0.020.04 0.08 Miles
I I I I I
REZ2 5-0006
E Foster Road
m
Prepared By: Rachael Schaefer
Date Prepared: April 2025
ATTACHMENT 2
Forest Hill Estates Final Plat
APPLICATION FOR FINAL PLAT
FOREST HILL ESTATES.
IN THE CITY OF IOWA CITY,
JOHNSON COUNTY, IOWA
LEGAL DESCRIPTION
A RESUBDIVISION OF AUDITOR'S PARCEL W AS RECORDED IN BOOK 32, PAGE 52, OF THE RECORDS
OF THE JOHNSON COUNTY, IOWA RECORDER'S OFFICE; AUDITOR'S PARCEL'B' AS RECORDED IN
BOOK 32, PAGE 53, OF THE RECORDS OF THE JOHNSON COUNTY, IOWA RECORDER'S OFFICE; A
PORTION OF THE NORTH HALF OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF
SECTION 3, TOWNSHIP 79 NORTH, RANGE 6 WEST, A TRIANGULAR PIECE LAYING IN THE NORTH
HALF OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 3, TOWNSHIP 79
NORTH, RANGE 6 WEST, AND SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 34,
TOWNSHIP 80 NORTH, RANGE 6 WEST, LYING SOUTH OF INTERSTATE 80, EXCEPT THAT LAND
CONVEYED TO THE CITY OF IOWA CITY FOR FOSTER ROAD AS RECORDED IN BOOK 3058 PAGE 10F
THE JOHNSON COUNTY, IOWA RECORDER'S OFFICE; THE PARCEL DESCRIBED IN TRUSTEE
WARRANTY DEED RECORDED IN BOOK 5696, PAGE 474 OF THE RECORDS OF THE JOHNSON
COUNTY, IOWA RECORDER'S OFFICE; PART OF SOUTHWEST QUARTER OF THE SOUTHEAST
QUARTER OF SECTION 34, TOWNSHIP 80 NORTH, RANGE 6 WEST, LYING SOUTH OF INTERSTATE 80;
PART OF -SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER SECTION 34, TOWNSHIP 80 NORTH,
RANGE 6 WEST, LYING SOUTH OF INTERSTATE 80; PART OF SOUTHEAST QUARTER OF THE
SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER SECTION 34, TOWNSHIP 80 NORTH, RANGE
6 WEST LYING SOUTH OF INTERSTATE 80; AND ALL OF THE PARCEL DESCRIBED IN WARRANTY DEED
4879-681 OF THE RECORDS OF THE JOHNSON COUNTY, IOWA RECORDER'S OFFICE; ALL LOCATED IN
THE CITY OF IOWA CITY, JOHNSON COUNTY, IOWA:
SAID PARCEL CONTAINS 50.15 ACRES, AND IS SUBJECT TO EASEMENTS AND RESTRICTIONS
OF RECORD.
PROJECT VICINITY MAP
Io1ra River
c
PROJECT UNDER RID)
LOCATION
ATKIN§A
7'�'"` 7
P4 (IOWA dTY CORPORATE LIMITS) .
# Fl}N19R ROAD
OS R
a /
ON
MISRSION PT
ARCRRO�C D�j0� 4c�O N! SAMUEL
FOSTER UE AR NE4VE AROUKECT
i �,,EEpWAY � E � G OaLIHE
A fAFT O IHiITING AVE d R
VIVID NOT TO SC Iowa River
IOWA CITY, JOHNSON COUNTY, IOWA
PROPERTY OWNER ATTORNEY:
JAMES D. HOUGHTON
ANDERSON AND HOUGHTON, LLP_.._._
568 HIGHWAY 1 WEST
IOWA CITY, IA 52246
319-351.-8600
FOUND RAIL all l,11 1,kEf_4111_1'J 1111C) FOUND IRON --- - N
L11 L12 L13 L14 7 SCM L18 j..
FOUND RAIL 1s �,'��' FOUND RAIL � 1 r hl
FOUND RAIL �_, ZQIB,� I Phi:.E;I� 4� i1V�k%�,
FOUND RAIL
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3.11 AC. -- - _ ► Vr 1 , 4 GRAPHIC SCALE
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FOR CONSERVATION I r/ t�l / FOUND
IRON � ��� � IIIIIIIIIIIIIIIII IIIII Illllllllllllllllllllll Iill Ill llllllllilll
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- — — — — — FOUND ROD / 25' ELEC. ESMT J OUTLOT B
— -- --- — — — — — WHITE— / BK1002-60 J J '. FOND PROJECT NUMBER:
L51�--- -SET P4N� — , `— l� IRON — 1 -O �1`t V
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/ // FOUND --� i 0 // - --- - FOUND fRbN BK�' 02-59 \PIPELINE
ZSCORNER/SEC 34_— -- _ ----- / Lsa -- --------- _ _ _------ ---I -- IRON------ _/ —SOU DPIN --- ---� ------ROD (BENT) _ _ — BK2256NI
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CONSERVATION � I � 1.,zs y // � — EX SANITATT
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CONSERVATION 1,�l / / BK300 415 \`1
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i o i — ' \ STORM L32 �\
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1 I-' I i o' � � � �.11a �R � /G" � �� � / / � � co FOUND iRON
I i s I I I L95 I o jTpFWA r / 4).� / CONSERVATION I FOUND IP ROD WPC
LOT 4 FOUND PIN EASEMENT ENGINEER:
I l I w I L4o3 STORMWATER / / MGM21 / �<�' / I I \�
I 9.52 AC. I w I w ItTo F MGMT ESMT �ry�/ / 1 /^� / 4OLAND
70,c�- IRON — L34
i 1 0 1 ¢ 1 W ( j Irn l 1 L101 I / / o / - / / ROD YPC
I J w I J I I IU I STORM// SEWER 8/ AFOUND PIN / // I /� ��\
I / ¢ I I I¢ I I SANITARY I / / / / LOT 5 � EX. SANITARY �, _
SEWER ESMT FOU DIP �_
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[ c1 r %< �1o8SEWER ESMTt0 // // 6.53 AC/ ` `' - ENGINEERING
/ pie'? L BK300-412 \
UIs�� a 1 J~\
j STORMWATER Lno / j i �� % / } Goa G�ti/ / FOUND PIN /
MGMTESMT �� �♦ \ HBK ENGINEERING LLC .
I ;�-- LT2 'L �1 \ _ v , J 4112 / / , �� ', Y 509 S. GILBERT ST.
V68 L71 C
[ h i�2j G� 11 —61 G16 C4 CID L126 v / CONSERVATION ' / \� UNLESS NOTED OTHERWISE, ALL DIMENSIONS ARE IN FEET AND IOWA CITY, fA 52240
! L23 L110 / HUNDREDTHS
SET PIN G'{ i l N 4 EASEMENT PHONE: (319) 338-7557
IA I, FOUND PIN FOUND PIN �; / NOTES:
L28 1 l
/ — — 1. BASIS OF BEARINGS IS GPS MEASUREMENTS IN THE IOWA PLANE
STORMWATER plc �` / COORDINATE SYSTEM SOUTH ZONE NAD 83.
MGMT ESMT wy/ \ / G6 T r -- - - — -' STORM I I / 'FOUND IOWA DEPARTMENT
SEWER I / V IRON �/ 2, OUTLOT C TO BE DEDICATED TO THE CITY OF IOWA CITY FOR PUBLIC
\ / EASEMENT R.O.W. OF LABOR
t STORMWAT�R / / �I I — — — —L140 — — — — �{ h/ ' i ti D / ' REGISTRATION
y �„
L62 MGMT ESMT/ FOUND P / -` I / . / 3. SEE SHEET 2 FOR CONSERVATION EASEMENTS NO. 00527328
\�s L138 15 ° FOUND IR6N
[ / ��/. STORM WATER I r -DEC / /" /�
[ \ <so � / �ORM SEWER
I I MGMT ESMT;;�4. LOT CORNERS ARE g�" R>;BAR UNLESS OTHERWISE NOTED.
/ n<7�_ a _ROD YPC WWW.HBKENGINEERING.COM
....... --- L135
i --
L25 �ji L38 5. ERROR OF CLOSURE IS LESS THAN 1:10,000.
' �/ I EX SANITARY SEWER ESMT r ` ~ DEVELOPER:
FOSTER ROAD
_. DEVELOPERS, LLC
340 HERKY STREET
L9 L11 - NORTH LIBERTY, IA 52317
FOUNDIPOST FOUND RAIL 319-351-6788
FOUND RAIL
OWNER:
L7
_ -.- - � _ FOSTER ROAD
FOUND RAIL FOUND RAIL DEVELOPERS, LLC
FOUND RAIL s Lu
k - I
340 ERKY STREET
H TR T
rl A>U- NORTH LIBERTY, IA 52317
OUTLOT "All
FOUND RAILI 23,81 AC. 319-351-6788
r^
FO N PIN , ,S
L2 N 1 1 CORNER SEC 3 DATE SUBMITTED:
FCM MAY 29, 2018
DRAWING LOG
REV ISSUED FOR DATE
Ur Z /04/18
�- FOUND PIN 0 w. A FINAL PLAT SUBMITTAL o4
__.._. -. _....— — -..... -- --- _.. Ll64
I—
LU
w L27 r
1 ! w S a CORNER SEC 34
\ I I SCM
-------�-_ =------ - �--------------------------------------_------___ -----�
I i ,
I HEREBY CERTIFY THAT THIS LAND SURVEYING DOCUMENT WAS
PREPARED AND THE RELATED SURVEY WORK WAS PERFORMED BY ME
�tttt ti L r�1<<�T� OR UNDER MY DIRECT PERSONAL SUPERVISION AND THAT I AM A DULY
s IO'^144 �fop LICENSED LAND SURVEYOR UNDER THE LAM OF THE STATE OF IOWA.
Q
�3w-o x5 - 30 18
y CDTHOMAS E. SIGNATURE DATE
LLI • HAGENSEE C - 09889 THOMAS E. HAGENSEE
N :
LICENSE NUMBER 09889
.�.
17' MY LICENSE RENEWAL DATE IS DECEMBER 31,201 S.
PAGES OR SHEETS COVERED BY THIS SEAL:
l 11 I II I IVlilt"
ilt THIS SHEET ONLY
STANDARD LEGEND
Boundary or Property Line
Existing Lot Line, Internal
— —
Section Line
Right -of -Way
Easement (Existing)
—
Easement (Proposed)
— — — — —
Property Corner, Found
0
Property Corner, Set
O
Section Corner - Found
Recorded Dimensions
(R)
Measured Dimensions
(M)
INDEX LEGEND
Location:
PART OF SE 1/4 SEC. 34-T80N-R6W
PART OF SW 1/4 SEC. 34-T80N-R6W
PART OF NE 1/4 SEC. 3-T80N-R6W
IOWA CITY, JOHNSON, IOWA
Proprietor:
FOSTER ROAD DEVELOPERS
PO BOX 2208
IOWA CITY, IA 52244-2208
319-351-6788
Developer:
FOSTER ROAD DEVELOPERS, LLC
340 HERKSY STREET
NORTH LIBERTY, IA 52317
319-351-6788
Surveyor:
Thomas E. Hagensee
Company:
HBK Engineering, LLC
509 S. Gilbert St.
Iowa City, Iowa 52240
Return To:
Thomas Hagensee, PLS
509 S. Gilbert St,
Iowa City, Iowa 52240
PLAT/PLAN APPROVED
by the
City of Iowa City
CITY CLERK
DATE
UTILITY EASEMENTS, AS SHOWN HEREON, MAY OR MATK6T,
INCLUDE SANITARY
SEWER LINES AND/OR STORM SEWER LINES, AND/OR WATER LINES: SEE
CONSTRUCTION PLANS FOR DETAILS.
UTILITYEASEMENTS, AS SHOWN HEREON, ARE ADEQUATE
FOR THE INSTALLATION
AND MAINTENANCE OF THE FACILITIES REQUIRED BY THE FOLLOWING AGENCIES:
MiDAMERICAN ENERGY CO:
DATE
J .s C,,
d'
CENTURYLINK
DA�E
MEDIACOM
DATE
PROJECT MANAGER:
N. BETTIS
DRAWN BY: CHECKED BY:
QM AA
SHEET TITLE:
FINAL PLAT
SHEET:
PAGE 1
May 30, 2018 - 11:10am i:lProject11705401dwg1CAD1Plat1170540 - FP -Forest Hill Estates UPDATED.dwq
ATTACHMENT 3
Applicant Submittal Materials —Rezoning Exhibit & Applicant
Statement
LOCATION:
APPLICANT:
A PORTION OF THE NORTHWEST QUARTER OF THE
FOSTER ROAD DEVELOPERS LLC
NORTHEAST QUARTER OF SECTION 3, TOWNSHIP 79 NORTH,
340 HERKY DRIVE
RANGE 6 WEST, OF THE FIFTH PRINCIPAL MERIDIAN, IOWA
NORTH LIBERTY, IOWA 52317
CITY, JOHNSON COUNTY, IOWA.
PROPRIETOR OR OWNER:
LAND SURVEYOR:
MARY ELLEN ALBERHASKYDAVID
RICHARD R. NOWOTNY P.L.S
LEE ALBERHASKY
MMS CONSULTANTS INC.
RAYMOND C ALBERHASKY
1917 SOUTH GILBERT STREET
M B ALBERHASKY PROPERTIES LLC
IOWA CITY, IOWA, 52240
22 7 ETH STREET
PHONE: 319-351-8282
IOWAA CITY, IOWA 52245
REZONING EXHIBIT
A PORTION OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION
3, TOWNSHIP 79 NORTH, RANGE 6 WEST, OF THE FIFTH PRINCIPAL MERIDIAN
IOWA CITY, JOHNSON COUNTY, IOWA
Oo 0UL0U II nw II
� NORTH QUARTER CORNER
OF /
SECTION 3—T79N—R6W '
I ,
OF THE FIFTH P.M. /
-- -----------------------------
FOUND IDOT MONUMENT W\ / � - \
1\2" PIN '
BOOK 50 AT PAGE 146 L___, r___J
I
/ -
0
IN ACCORDANCE WITH THE PLAT Ti1ERE6F RECORD
IN PLAT f500K /v2 AT PAGES 109-110 OF THE
RECORD OF THE JOf fNSON COUNTY RECORDER'S I
OFFICE
,
'I LOU 4 I /
II d
L07 3
00
Oo
00
90
' 1 /
I , /
/yFOSUER ROAD
I / /
N ACCORDANCE WITH THE PLAT THEREOF REGOR�J
IN PLAT WOK 62 AT PA&E5 109-110 OF THE/ / n
POINT OF BEGINNING RECORD OF THE JOHNSON COUNTY RECORDERS/ p o L 07 2N
/ SOUTHWEST_CORNER OF LOT 5 OFFICE
------------------------------L07 5 cyl / N
00
NO3°34'39"W
19. 5'
S89°56'41"E 966.58'
S89'56 344.35' M 344.12' R 962.84'(M)962.88'(R)
0=13°00'24" /' R=467.00'(M)(R) aEZONING PARCEL (RS-12 TO OPD1RS7-12)---- --- -------------
R=783.00'(M)(R) L=0.07'(M)(R) -
T=0.03' 117,184 SF --- 2.69 AC __--------- S03°38.28'
L=177.75'(M)(R) / / _--- -- 48.28'
T=89.26' C=0.07'(M)(R) ___------- I
C=177.37'(M)(R) CB=N44°07'45"E Z
J ---- _-----
- CB=N50°37'42"E------_-- ___--------- S83°38'13"W
D 00
m
QP ti3''' 1226.50'
o / C
rn
��o / 0
V) A
/ �o Gil Z O
`V Lp Z
oI F
NI0
N
L'i
cn
o'
m
CENTER
OF
SECTION 3—T79N—R6W
OF THE FIFTH P.M.
FOUND 5\8" REBAR
BOOK 40 AT PAGE 256
0 10 25 50 75 100
GRAPHIC SCALE IN FEET
1 "=100'
SOUTHEAST CORNER
OF THE
NORTHWEST QUARTER
OF THE
NORTHEAST QUARTER
OF
SECTION 3—T79N—R6W
OF THE FIFTH P.M.
SET 5\8" REBAR W\ YELLOW
PLASTIC LS CAP 17916
PER RESUBDIVISION OF LOT 30
OF CONWA`
FIN/
rn
cn
W
LEGEND AND NOTES
®
- CONGRESSIONAL CORNER, FOUND
•
- PROPERTY CORNER(S), FOUND (as noted)
O
- PROPERTY CORNERS SET
(5/8" Iron Pin w/ yellow, plastic LS Cap
embossed with "MMS" )
®
- CUT "X"
- PROPERTY &/or BOUNDARY LINES
- CONGRESSIONAL SECTION LINES
- RIGHT-OF-WAY LINES
- CENTER LINES
- LOT LINES, INTERNAL
- LOT LINES, PLATTED OR BY DEED
— — — — — —
— - EASEMENT LINES, WIDTH & PURPOSE NOTED
------
- EXISTING EASEMENT LINES, PURPOSE NOTED
(------
R)
- RECORDED DIMENSIONS
M
- MEASURED DIMENSIONS
C22-1
- CURVE SEGMENT NUMBER
UNLESS NOTED OTHERWISE, ALL DIMENSIONS ARE IN FEET AND HUNDREDTHS
DESCRIPTION - REZONING PARCEL (RS-12 TO OPD/RS-12
BEGINNING at the Southwest Corner of Lot 5 of "Amended"
Forest Hill Estates, to Iowa City, Iowa, in accordance with the
Plat thereof Recorded in Plat Book 62 at Pages 109-110 of the
Records of the Johnson County Recorder's Office; Thence
S89056'41"E, along the South Line of said Lot 5, and the Easterly
Projection thereof, 966.58 feet, to a Point on the West Line of a
Resubdivision of Lot 30 Conway's Subdivision, in accordance
with the Plat thereof Recorded in Plat Book 17 at Page 53 of the
Records of the Johnson County recorder's Office; Thence
S03034'39"E, along said West Line, 48.28 feet; Thence
S83038'13"W, 1226.50 feet, to a Point on the East Right -of -Way
Line of Foster Road, in accordance with the Condemnation
Recorded in Book 3100 at Page 358 of the Records of the
Johnson County Recorder's Office; Thence N57007'54"E, along
said Easterly Right -of -Way Line, 133.57 feet; Thence
Northeasterly, 177.75 feet, along said Easterly Right -of -Way Line
on a 783.00 foot radius curve, concave Northwesterly, whose
177.37 foot chord bears N50037'42"E; Thence Northeasterly,
0.07 feet, along said Easterly Right -of -Way Line on a 467.00 foot
radius curve, concave Southeasterly, whose 0.07 foot chord
bears N44007'45"E, to the POINT OF BEGINNING. Said Rezoning
Parcel contains 2.69 Acres, and is subject to easements and
restrictions of record.
LOCATION MAP - N.T.S.
to a0 ►t ion -a city - Interstate 80
]' PA R
Rs1 . (RS-1�TO
0PD/R -
1 BSI�TIIIIW
shkenek Ra-: sbillla
RS�-Z
FkA
M
CIVIL ENGINEERS
LAND PLANNERS
LAND SURVEYORS
LANDSCAPE ARCHITECTS
ENVIRONMENTAL SPECIALISTS
1917 S. GILBERT ST.
IOWA CITY, IOWA 52240
(319)351-8282
www.mmsconsultants.net
Date I Revl5lon
04-02-2025 PER RRN REVIEW - RLW
REZONING EXHIBIT
IOWA CITY
JOHNSON COUNTY
IOWA
MMS CONSULTANTS, INC.
Date:
04-01-2025
Designed by:
Field Book No:
RRN
1401
Drawn by:
Scale:
RLW
1 "=100'
Checked by:
Sheet No:
RRN
Project No:
IOWA CITY
11619-002
of: 1
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MMS Consultants, Inc.
Experts in Planning and Development Since 1975
April 4, 2025
City of Iowa City
Neighborhood and Development Services
410 E. Washington Street
Iowa City, IA 52240
Re: Auditor's Parcel 2025002
1917 S. Gilbert Street
Iowa City, Iowa 52240
319351.8282
mmsconsultants.net
mms@mmsconsultants.net
On behalf of the applicant, MMS Consultants requests a rezoning of Auditor's Parcel
2025002. The auditor's parcel is a portion of parcel number 1003126004, located on E.
Foster Road. The request is to change the zoning from RS12 to OPD/RS12.
The applicant wishes to add auditor's parcel 2025002 to Lot 5 Forest Hill Estates.
Auditor's parcel 2025002 is for a land swap with the adjacent property owner. Parcel
number 1003126004 is currently zoned RS12. The purpose of the rezoning is so the
property will not have two different zonings.
Respectfully submitted,
Ronald L. Amelon, PE
Item Number: 7.c.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution setting a public hearing on June 3, 2025 on project manual and estimate of cost for
the construction of the 2025 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: Timothy Schmadeke — Civil Engineer
Reviewed By: Jason Havel — City Engineer
Ron Knoche — Public Works Director
Geoff Fruin — City Manager
Fiscal Impact: $360,000 available in the Water Division Operating Budget
account #73730130.
Staff Recommendation: Approval
Attachments: Resolution
Executive Summary:
This agenda item begins the bidding process for the 2025 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 70 water main breaks in Iowa City each year, and 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 20, 2025
Hold Public Hearing: June 3, 2025
Bid Letting: July 1, 2025
Award Date: July 8, 2025
Construction: July to November 2025
Prepared by: Timothy Schmadeke, Engineering Division, 410 E. Washington St., Iowa City, IA 52240, (319)35G5044
Resolution No. 25-122
Resolution setting a public hearing on June 3, 2025 on project
manual and estimate of cost for the construction of the 2025
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 V day of June, 2025, 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 20th day of May 2025
Mayor Pro Tem
Approved by
Attest:
De lyity Clerk City Attomqs Office
(Liz Craig — 05/15/2025)
It was moved by_
adopted, and upon
Ayes:
Moe and seconded by
call there were:
Aarmsen the Resolution be
Nays: Absent:
x Alter
Bergus
Harmsen
Moe
Salih
Teague
Weilein
�,G
Item Number: 7.d.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution setting a public hearing on June 3, 2025 on plans, specifications and estimate of
cost for the construction of the Wastewater Treatment Facility Digester Complex Rehabilitation
- Phase 1 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: Ben Clark — Senior Engineer
Reviewed By: Tim Wilkey — Wastewater Superintendent
Jason Havel — City Engineer
Ron Knoche — Public Works Director
Geoff Fruin — City Manager
Fiscal Impact: $28,200,000 available in the Digester Complex
Rehabilitation fund #V3151 and in the Wastewater Digester
Gas Improvements fund #V3184.
Staff Recommendation: Approval
Attachments: Resolution
Executive Summary:
This agenda item begins the bidding process for the Wastewater Treatment Facility Digester
Complex Rehabilitation - Phase 1 Project. This project generally includes improvements to
the digester complex and a process to produce pipeline quality gas for sale on the renewable
fuel market.
Background / Analysis:
The City of Iowa City commissioned a facility plan for the Digester Complex in 2021 that
evaluated the condition of the existing digester equipment, current digester loadings, gas
production, future capacity needs and struvite management alternatives. The facility plan
identified improvements that will rehabilitate the existing facility and will allow for the
production of pipeline quality gas for sale on the renewable fuel market.
This project includes replacing the existing tank insulation, tank seals, gas safety equipment,
and monitoring instrumentation. It also includes replacing the existing draft tube mixing
systems with linear motion mixing systems for an estimated annual energy savings of
approximately 400,000 kWh or $25,000. Additional improvements include a new sludge
screening process, a new chemical storage building and process for struvite management,
and a new high strength waste receiving and storage facility. The project also includes the
installation of equipment to produce and distribute pipeline quality gas to be sold on the
renewable fuel market.
A future phase will include replacing the boilers and transfer pumps and will happen when
funds are available in the Capital Improvement Program.
Project Timeline:
Public Hearing / Approve Project Manual: June 3, 2025
Bid Letting Date: July 15, 2025
Contract Award Date: August 5, 2025
Construction Dates: Fall 2025 to Summer 2028
i
Prepared by: Ben Clark, Engineering Division, 410 E. Washington SL Iowa City, IA 52240, (319), W5 35
Resolution No. 25-123
Resolution setting a public hearing on June 3, 2025 on plans,
specifications and estimate of cost for the construction of the
Wastewater Treatment Facility Digester Complex Rehabilitation -
Phase 1 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 Digester Complex Rehabilitation fund #V3151
and in the Wastewater Digester Gas Improvements fund #V3184.
Now, therefore, be it resolved by the Council of the City of Iowa City, Iowa, that:
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 3'o day of June, 2025, 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.
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.
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 20eh day of May 2025
Mayor Pro Tem
APprov by
Attest:
eputy City Clerk City Atto ey's Office
(Liz Craig - 05/13/2025)
It was moved by Moe and seconded by
adopted, and upon roll call there were:
aarmsen the Resolution be
Ayes: Nays:
Absent:
x Alter
X
Bergus
X
Harmsen
X
Moe
�—
Salih
—�
Teague
x
Weilein
Item Number: 10.b.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution approving an application to the Iowa Economic Development Authority for State
CDBG-CV funds.
Prepared By: Erika Kubly, Neighborhood Services Coordinator
Reviewed By: Tracy Hightshoe, Neighborhood and Development Services
Director
Fiscal Impact: Iowa City anticipates receiving $301,500 in federal CDBG-
CV funds.
Staff Recommendation: Approval
Commission Recommendations: NA
Attachments: Resolution
Executive Summary:
Iowa City anticipates receiving $301,500 in State CDBG-CV funds for shelter operations to
prevent, prepare for, and/or respond to the COVID-19 pandemic. Funds are being awarded to
local governments on behalf of shelters as determined by the Iowa Economic Development
Authority. Iowa City expects to receive $300,000 to be allocated to Shelter House for shelter
operations, along with $1,500 in project delivery or administrative funds to be used by the
City to administer this activity. Funds will be available once agreements are in place and the
environmental review is complete. The program deadline for expenditures is May 2026.
Background / Analysis:
Congress provided $5 billion in the CARES Act for the Community Development Block Grant
(CDBG) program to be allocated by the Department of Housing and Urban Development
(HUD). Iowa City previously received multiple awards of CDBG-CV funding through HUD and
as a subrecipient of the State of Iowa totaling $2,282,642. Funds were used for emergency
housing assistance, aid to nonprofits, business assistance, and emergency shelter facility
improvements.
The Iowa Economic Development Authority (IEDA) recently approached the City of Iowa City
with an opportunity to apply for $301,500 in CDBG-CV public service funds for shelter
operations in partnership with Shelter House. Eligibility for this funding was determined by
IEDA with the local funding amount based on the number of shelter beds. The City will
administer the funds as a subrecipient of IEDA with $300,000 going to Shelter House and
$1,500 available for staff administrative costs. Staff plans to request additional administrative
funds from IEDA to cover all internal staff time for this activity.
Shelter House Emergency Shelter is located at 429 Southgate Avenue in Iowa City. The
facility has 70 beds with two dormitory areas for single adults (including dormitory bathroom
facilities) and eight private family rooms with separate bathrooms. The Emergency Shelter is
staffed 24/7 and is fully accessible. Clients include infants through elderly, single adults, and
families with children. All are considered extremely low income falling at or below 30% of the
Area Median Income (AMI). Breakfast and dinner are served daily to shelter clients. Laundry
services, bedding, towels, clothing, and personal care items are also provided. The
Emergency Shelter is low barrier and does not screen out for substance abuse, lack of
income, etc.
Because CDBG-CV funding is tied to COVID-19, the City and Shelter House must describe
how shelter operations will prevent, prepare for, and/or respond to effects of the pandemic.
Health issues associated with the COVID-19 pandemic have highlighted the relationship
between shelter, housing and public health. Ensuring individuals have a safe and secure
place to sleep is a critical prevention mechanism for maintaining public health and preventing
spread of illness in our community. In recent years, eviction prevention resources available
during the pandemic have expired. This, in combination with significantly increased costs of
living and barriers to accessing rental housing, points to the importance of ensuring the
financial stability of the local emergency shelter as a component of our overall community's
health. Shelter House committed to meeting the 24/7 demands of shelter in Iowa City during
the height of the pandemic and continue their efforts today.
CDBG-CV funds will be used by Shelter House exclusively to support Emergency Shelter
operations at 429 Southgate Avenue in Iowa City. The Emergency Shelter operating budget
is projected to run at a deficit of $634,000 for the contract period, indicating that this funding
will not constitute a duplication of benefits. Additionally, CDBG program rules do not allow for
funds to supplant local financial support for community development activities, meaning this
funding cannot be used to reduce other local funding planned for shelter operations.
The State CDBG-CV Homelessness Operations Application was made available for public
comment on May 13, 2025. May 20, 2025 will constitute a public meeting for the application.
Next steps will be to submit materials to the Iowa Economic Development Authority by June
1, 2025. All funds must be expended by May 2026.
Prepared by: Erika Kubly, Neighborhood Services, 410 E. Washington SL, Iowa City, IA 52240 (319) 356.5230
Resolution No. 25-124
Resolution approving an application to the Iowa Economic Development
Authority for State CDBG-CV funds
Whereas, the Iowa Economic Development Authority (IEDA) has $2,000,000 of unobligated
CDBG-CV funds that must be expended within the next year, and
Whereas, IEDA is using those funds to support homeless shelters around the state with
increased operating costs as they work to prevent, prepare for and/or respond to the effects of
the pandemic; and
Whereas, IEDA has allocated State of Iowa CDBG-CV funds to communities based on shelter
location and number of beds; and
Whereas, the City of Iowa City anticipates an allocation of $301,500 in State of Iowa CDBG-CV
funds to prevent, prepare for, and/or respond to the COVID-19 pandemic in partnership with
Shelter House; and
Whereas, the State CDBG-CV Homelessness Operations Application contains the proposed
use of funds attached hereto as Appendix A; and
Whereas, the City has held a public comment period and public meeting on the State CDBG-CV
Homelessness Operations Application and the proposed use of funds; and
Whereas, adoption of Iowa City's State CDBG-CV Homelessness Operations Application will
make Iowa City eligible for federal funds administered by the Iowa Economic Development
Authority; and
Whereas, the City Council finds that the public interest will be served by the approval of the
State CDBG-CV Homelessness Operations Application and submission to the Iowa Economic
Development Authority.
Now, Therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The City of Iowa City State CDBG-CV Homeless Operations Application, containing the
proposed use of funds attached hereto as Appendix A, is hereby approved and adopted.
2. The City Manager is hereby designated as the Chief Executive Officer and authorized to
act on behalf of the City of Iowa City in connection with the State CDBG-CV funds.
3. The City Manager of Iowa City is hereby authorized and directed to submit the City of
Iowa City's State CDBG-CV Homelessness Operations Application to the Iowa
Economic Development Authority and is further authorized and directed to provide all the
necessary certifications or documents required by the Iowa Economic Development
Authority or the U.S. Department of Housing and Urban Development.
Resolution No. 25-124
Page 2
4, The City Manager is hereby authorized to execute, terminate, or amend State CDBG-CV
Agreements executed in connection with the allocation of public funds with sub -
recipients or other legal entities.
Passed and approved this 20' day of May 2025.
Attest: /
eputy City CWK
(Sue Dulek - 0511312025)
Resolution No. 25-124
Page No. 3
It was moved by
Moe , and seconded by Ha=sen , that the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Alter
x Bergus
x Harmsen
x Moe
_x Salih
x Teague
x Weilein
Appendix A
Homelessness Operations CDBG-CV Application
Name of City: City of Iowa City
Allocation Amount: $301,500
General Considerations:
1. 100% of funds must be for Low -to Moderate Income Activities. 24 CFR 570.208(a)(2)(1)(A)
includes homeless persons in the definition of presumed to be principally low and moderate
income persons.
2. Activity costs must be for shelter operations expenses; no construction, rehab, etc., work is
allowed. CDBG matrix code 03T "Homeless/AIDS Patients Programs' (e.g., staff costs, utilities,
maintenance, insurance).
3. Estimate the amount of funds allocated to activity delivery cost per activity/homeless program.
Activity delivery cost would be the source of administration dollars for entitlement cities to
administer these funds, and non -entitlement communities would allocate those admin dollars to
a grant administrator as per regular CDBG program awards. HUD put out a CPD Notice about
activity delivery costs vs. general administration costs:
https,//files hudexchangeinfo/resources/documents/Notice-CPD-13-07-Allocating-Staff-Costs-
P rogra m-Adm i n istration-De I ive ry-Costs-CDBG. pdf.
4. This is a non-competitive application. IEDA is seeking information on how you will expend your
allocation (referenced above) of IEDA's remaining CDBG-CV allocation.
S. 100%of funds must be expended post -award after the IEDA environmental/historic review and
approval date and before the contract end date of 5/31/26. All costs must be incurred post -
award and before 5/31/26.
6. This is a reimbursement grant. Requests for reimbursement of shelter operations expenses and
any city activity delivery expenses should be submitted in IowaGrants ideally monthly but at a
minimum on a quarterly basis.
7. Unless waived or modified by the Federal Register Notice, all state CDBG regulations will govern
these funds. This includes but is not limited to: going through IEDA for the
environmental/historic review process, using IowaGrants for all form submissions, using the
I EDA Procurement Policy for any purchases made with grant funds, and complying with IEDA
records retention, monitoring, and other requirements.
Submit with the Application:
1. Cover Page: The application must be accompanied by a letter on City letterhead signed by the
Chief Elected Official authorizing IEDA to consider the application
2. Applicant Disclosure Report: https�//www.hud.gov/sites/dfiles/OCHCO/documents/2880.pdf
3. Federal Assurances Signature Page: Included on page seven (7) of this document.
4. Public Hearing minutes and the notification of the public hearing. Instructions for the public
hearing can be found on page two (2).
S. The completed Program pages that follow in this document, on pages 3-6. Complete one page
per shelter that would receive funding.
6. Duplication of Benefits (DOB) documentation: a) the IEDA CDBG DOB Policy to be adopted by
the City, and b) documentation demonstrating that this award would not constitute a
duplication of benefits for either the City as recipient or shelter subrecipient(s).
7. Email all materials to Sarah Plowman (sarah olowman2iowaeda.com) by June 1, 2025.
Origin of Funds:
In 2020, HUD made three allocations of CDBG-CV funds to states. States are allowed to fund
either entitlement or non -entitlement communities with these funds. For the Federal Register
notice, see here: httos //www.hud.govlsites/dfiles/CPDldocuments/CDBG-
CV Notice Federal Register Publication 2002-08.odf For memos regarding the methodology
of the second and third allocations of funds, see these links respectively:
httr)s,//www.hud.govlsites/dfiles/C`PD/documentsiRevised CDBG-CV2 Methodologv.adf and
https-//www.hud.govlsites/dfiles/CPD/document_sLMethodoloFy-for-CDBG-CARES-Act-Final-
Allocation-CV-3-Part-A-9-11-2020.pdf
Next Steps:
Applications due by 6/1/25. After your community submits the entitlement application, it will
be reviewed by IEDA staff who will notify you if any other application materials will be needed
for clarification. If the application is complete and meets the CDBG-CV regulations, upon
Director approval IEDA would then send you an award letter and contract. Award funds are
contingent upon the successful return and execution of the contract.
Overall Budget (fill as many lines as you need):
Program
Amount of
Funds
Activity Delivery Cost Per Unit or
Individual Activity
National
objectiv e
1 Shelter Operations
$301,500
Total ADC: $1,500
Per Unit ADC: $1,500/400 = $3.75
LMI
2
3
4
Total amount
$301,500
Public Hearing Instructions:
The purpose of the hearing is to make the public aware of the application to IEDA to spend the CDBG-CV
funds allocated to the City.
Publication: The public hearing notice must be published no more than 20 days and no less than 4 days
from the date of the public hearing. The notification should follow the City's normal protocols for
publication but should at a minimum be published in a newspaper of general circulation.
Public Hearing: The City should follow their normal public hearing protocols. These can be virtual or in -
person. The public hearing must include:
1. Need for the CDBG project
2. Description of the CDBG funded project & activities
3. The amount of CDBG funds for the project
4. Estimated amount of CDBG assistance that will benefit low -and moderate -income persons
5. The location of project activities
6. Any relocation that will have to take place because of the CDBG project, plans to minimize any
displacement of persons as a result of the funded activity, and plans to assist persons actually
displaced if that were to occur
7. City/ County contact information for residents to contact with concerns or complaints regarding
the project
8. Community Development and Housing Needs of low to moderate persons in the City and any
planned or potential activities to address these needs. The City should ask for public input on
this item and include public comments in the minutes.
9. Other Community Development and Housing needs and any planned or potential activities to
address these needs. The City should ask for public input on this item and include public
comments in the minutes.
Minutes: The public hearing minutes from the hearing must include the information provided at the
hearing on the 9 points listed above.
Program Description:
Shelter 1 Name: Shelter House —Shelter Operations
1. Amount of funds to be allocated to the shelter: $300,000
2. Description (pre- and post -pandemic) of the shelter and its operations:
Shelter House Emergency Shelter serves single adults and families. The shelter facility is located
at 429 Southgate Avenue in Iowa City; it is a 70-bed shelter with two dormitory areas for single
adults (including dormitory bathroom facilities) and eight private family rooms with separate
bathrooms. The facility is staffed 24/7, is fully accessible, and meets ADA standards, including
elevator access. Breakfast and dinner are served daily to shelter clients and accommodations
are made for dietary and/or religious reasons. Shelter House provides laundry services for all
shelter clients. Bedding and towels are provided as are clothing and personal care items through
community donations.
The people Shelter House serves are in crisis and struggle with histories of trauma and violence.
The majority struggle with complex behavioral health and chronic health conditions —serious
mental illness, substance use, polysubstance use, chronic and acute health issues, co-occurring
illnesses, ambulatory challenges, brain injury, and intellectual disabilities. Shelter House serves
infants through elderly, single adults, and families with children. All are extremely low income
falling at or below 30%area median income.
Funding is being requested for Emergency Shelter Operations. Shelter House's Emergency
Shelter runs through the region's coordinated entry system. If diversion is not possible, the
people with the highest needs will be prioritized for shelter beds (not first come first served). In
shelter, essential services are provided to everyone to assist them with self -resolving their
homelessness. If that is not possible after 7-14 days, they are entered into Coordinated Entry for
assessment to a housing project (Rapid Rehousing or Permanent Supportive Housing).
Shelter House Emergency Shelter is low barrier and does not screen out for substance use, lack
of income, etc. Shelter House follows HUD's equal access rule with regards to gender and
gender identity. Employment assistance is also provided in shelter where job search, resume
development, and computers are set up (along with staff support) to help people with
employment. Clinical health and behavioral health services are available on -site weekly through
partnerships with the University of Iowa Adult Psychiatry and U of I College of Nursing.
As a low -barrier provider, Shelter House Emergency Shelter provides immediate relief to area
first responders and our hospital emergency rooms, as people with complex health and
behavioral health challenges are able to access shelter and are not living their lives on the
streets, in encampments, and other places not meant for human habitation. We know the
solution to homelessness is housing and that emergency shelter is a short-term solution. That
said, it is a critically necessary short-term solution that saves lives and personal dignity. Being a
low barrier and Housing First provider means the people Shelter House works with, irrespective
of the service intervention, are not required to engage in services or follow a program; they are
not required to demonstrate sobriety or medication -compliance as a prerequisite to shelter or
housing or even as a condition to retaining their housing. Instead, we rely on motivational
interviewing and trauma -informed care techniques, combined with harm reduction strategies,
to encourage and support individual choice, growth, and positive change.
Individuals served and supported through the emergency shelter have previously been trapped
in a cycle of crisis and housing instability (including homelessness and chronic homelessness)
due to poverty, trauma, violence, mental illness, substance misuse, or other chronic health
conditions. The traditional service and housing interventions have not worked for these
individuals and are instead experienced as functional barriers to stability and care with the
result being the most vulnerable habitually cycle in and out of high -cost crisis services. This
comes at great cost to our communities, our state, and indeed results in the greatest cost of all:
the loss of life. Through our commitment to a low -barrier and Housing First approach, Shelter
House disrupts this cycle and instead offers support, guidance, resources, a path to improved
health and stability and a way home.
3. Estimate of the number of individuals to be assisted with this funding over the contract
period:
Shelter House estimates serving 400 unique individuals during the contract period.
4. Describe how the planned activity will prevent, prepare for, and/or respond to the effects of
the COVID-19 pandemic in this shelter specifically and the community as a whole:
The health -related issues associated with the COVID-19 pandemic illuminated the relationship
between shelter, housing, and public health. Housing is a leading social determinant of health,
and, according to the Center for Disease Control and Prevention, social determinants influence
health more than either genetic factors or access to healthcare. Emergency Shelter is an
intervention that provides a safe, decent, and welcoming temporary living environment where
clients' daily needs can be met as they pursue pathways back to safe and stable housing. Our
goal at Shelter House is to ensure individuals have safe, quality, affordable housing as the first
step toward stabilization. To that end, providing Emergency Shelter while seeking permanent
housing has a clear and direct impact on client health and, by extension, the health of the entire
community. Ensuring individuals have a safe and secure place to sleep becomes a critical
prevention mechanism when highly virulent and contagious illnesses, like the COVID-19 virus,
spread in our community. Shelter House has always been committed to meeting the 24/7
demands of shelter for the hundreds of adults, children, and families we serve each year.
Notably, Eviction Prevention resources made available throughout the duration of the pandemic
recovery period are soon to end. This, in combination with the significantly higher costs and
barriers faced to accessing rental housing following the pandemic, and significantly increased
cost of living means that, now more than ever, ensuring the financial stability of Emergency
Shelter is critical to our community's health.
S. Describe any additional ways that the planned activity will address public health, coronavirus,
and/or housing and economic disruption needs:
As Colburn & Aldern exhaustively detail in their 2022 study, homelessness is, ultimately, a
housing problem. Shelter House works with extremely low-income clients experiencing, at risk
of, and exiting homelessness to help them on their path to housing. Clients often have
compounding issues such as chronic health problems, physical disabilities, brain injuries,
multiple physical and mental health issues, inadequate access to healthcare, childhood trauma,
histories of abuse, post -traumatic stress, and veteran status, among other concerns. Shelter
House's work providing Emergency Shelter while connecting difficult to house individuals to a
safe and stable permanent home is critical to the public health of the community.
6. Describe how the full allotment of funds will be expended on operations expenses by
5/31/26:
The operating budget for Emergency Shelter is projected to run at a deficit of $634,000 for the
contract period. Shelter House will utilize CDBG-CV funds for Emergency Shelter payroll and
benefits with the goal of maintaining current level of effort.
7. Describe how this funding will not constitute a duplication of benefits (DOB) for either the City
as recipient or the shelter as subrecipient. Attach supporting documentation.
CDBG-CV funds will be used exclusively to support Emergency Shelter operations at 429
Southgate Avenue, Iowa City. The Emergency Shelter operating budget is projected to run at a
deficit of $634,000 for the contract period. This does not include Administration, Fundraising, or
other Indirect Costs. The projection assumes an award from the City of Iowa City of no less than
the current fiscal year award. There is no duplication of benefit.
FEDERAL ASSURANCES SIGNATURE PAGE
1, , (applicant official) hereby certify that in carrying out the activities funded under the CDBG Program, the
City/County of
A. will minimize displacement of persons as a result of such activities;
B. will conduct and administer the program in conformity with Public Law 88-352 (Title VI of the Civil Rights Act
of 1964), and Public Law 90-284 (Title Vlll of the Civil Rights Act of 1968) and will affirmatively further fair
housing);
C. will provide for opportunities for citizen participation, hearings, and access to information with respect to
our community development program comparable to the requirements found under sections 304(a)(2) and
104(a)(3) of Title I of the Housing and Community Development Act of 1975 as amended through 1987; and
D. will not attempt to recover any capital costs of public improvements assisted in whole or part under the
CDBG Program by assessing any amount against properties owned and occupied by persons of low and
moderate income, including any fee charged or assessment made as a condition of obtaining access to such
public improvements, unless (i) funds received under the CDBG Program are used to pay the proportion of
such fee or assessment that relates to the capital costs of such public improvements that are financed from
revenue sources other than under Public Law 93-383, as amended, or (ii) for purposes of assessing any
amount against properties owned and occupied by persons of low and moderate income who are not of
very low income, the city/county has certified to the State that it lacks sufficient funds received under the
CDBG Program to comply with the requirements of clause (i) above.
I also certify that to the best of my knowledge and belief, data in the application is true and correct, including
commitment of local resources; the document has been duly authorized by the governing body of the applicant;
and the applicant will comply with all applicable federal and state requirements, including the following, if
assistance is approved:
A. Civil Rights Acts;
B. Housing and Community Development Acts of 1974, as amended;
C. Age Discrimination Act of 1975;
D. Section 504 of the Rehabilitation Act of 1973;
E. Davis -Bacon Act, as amended, where applicable under Section 110 of the Housing and Community
Development Act of 1974, as amended; Contract Work Hours and Safety Standards Act; the Copeland Anti -
kickback Act; the Department of Defense Reauthorization Act of 1986 and the Fair Labor Standards Act.
F. National Environmental Policy Act of 1969 and 24 CFR 58 (Environmental Review).
G. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended;
H. State of Iowa Citizen Participation Plan;
1. Lead -based Paint Poisoning Prevention Act;
J. Residential Anti -displacement and Relocation Assistance Plan;
K. Government -wide Restriction on Lobbying and the Hatch Act; and
L. Prohibition on the Use of Excessive Force.
SA-0/Zr
Typed f a of Applicant Official Signature
Date
TypEEE/dd/d/ Name of Person Attesting Signature Date
Item #10.b
STAFF PRESENTATION TO FOLLOW:
="
� r
�
m
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240- 1 826
(319) 356-5000
(319) 356-5009 FAX
www. icgov.org
CDBGm CV SHELTER OPERATIONS
Application to IEDA
May 20, 2025
CDBG- CV FUNDS
• CDBG-CV funds made available through the 2020 CARES Act
• Funds must be used to "prevent, prepare for, and/or respond to the
effects of the COVID-19 pandemic"
Past Allocations:
Round
o d 1
HUD
$ 410, 422
Emergency Housing Assistance
Aid to Nonprofits
Round
o d 2
IEDA
6 6, 610
$ 8
Emergency Housing Assistance
Aid to Nonprofits
Round 3
HUD
$424,128
Business Assistance Program
Supplemental
IEDA
$685,982
Emergency Shelter Improvements
CDBG- CV APPLICATION OVERVIEW
Description of the Project:
• CDBG-CV funding for emergency shelter operations
(staff costs, utilities, maintenance, insurance, etc.)
• Funding available to Iowa shelters selected by IEDA
o Shelter House Emergency Shelter
Amount of CDBG - CV Funds:
• Total anticipated award: $301,500
o $300,000 to Shelter House
o $1,500 administrative funds to the city
■ City plans to request additional administrative funds to cover staff costs
CDBG- CV APPLICATION OVERVIEW
Estimated amount of CDBG assistance that will benefit LMI persons:
• All funds must be for Low -to -Moderate Income Activities
• Project expected to assist 400 individuals who are extremely low
income (<30% AMI)e
• Clients referred through local Coordinated Entry process
location of project activities:
• Shelter House - 429 Southgate Avenue, Iowa City
0 70 bed emergency shelter
No relocation or displacement will take place as a result of this
activity being funded.
NEED FOR THE PROJECT
• Housing is a leading social determinant of health
• Emergency shelter provides a safe temporary living environment
where clients' daily needs can be met as they pursue stable
housing.
• Economic hardship and housing insecurity has increased since
the pandemic.
• Shelter House projects a deficit of $723,407 for the emergency
shelter operating budget this year. CDBG-CV funds will allow the
agency to continue provision of services.
COMMUNITY DEVELOPMENT & HOUSING NEEDS
This public meeting provides an opportunity for members of the public to
provide input on this activity and community need.
What are needs of low -to -moderate income persons in Iowa City?
o Access to safe, affordable housing
o Access to services including shelter and other basic needs
What are planned or potential activities to address these needs?
o The planned shelter operations project will address the need for shelter
and related housing services for individuals experiencing homelessness.
o Low barrier shelter prioritizing those with the highest needs
o Funding will support continued operations
OTHER COMMUNITY DEVELOPMENT & HOUSING NEEDS
This public meeting provides an opportunity for members of the public to
provide input on this activity and community need.
What are other community development and housing needs in Iowa City?
1. Expansion and preservation of affordable housing
2. Provision of public services
3. Public facility improvements
What are planned or potential activities to address these needs?
Federally Funded Activities:
• ARPA Housing Stability Pilot
• CDBG funding rounds
• HOME -ARP activities
• HCV & Public Housing programs
• HOME TBRA
Local Initiatives:
• Aid to Agencies
• Street Outreach funding
• Winter Shelter funding
• Security Deposit Assistance
• Landlord Risk Mitigation
NEXT STEPS FOR CDBGCV APPLICATION
• Public notice of the CDBG-CV application was posted in the Press
Citizen on May IT h.
• Application to IEDA is due June 1, 2025
• Funds will be available post -award and must be expended by May
2026
• City contact information regarding the project:
Erika Kubly
Neighborhood Services Coordinator
ekubly@iowa-city.org
319-356-5121
STAFF PRESENTATION CONCLUDED
� r
m7pL
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240- 1 826
(319) 356-5000
(319) 356-5009 FAX
www.icgov.org
Item Number: 10.c.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution assessing $1500.00 civil penalty and thirty -day retail cigarette permit suspension
against Casey's General Store #2761.
Prepared By: Rebecca Passavant, City Attorney's Office Administrative
Secretary
Reviewed By: Jennifer L. Schwickerath, Assistant City Attorney
Fiscal Impact: No impact
Staff Recommendation: Approval
Attachments: Resolution Assessing 3rd Offense Civil Penalty
Executive Summary:
Iowa Code Section 453A.22(2) provides that, after a hearing, a civil penalty shall be
assessed when an employee of a retailer violates Iowa Code Section 453A.2(1) by selling or
providing tobacco to a minor. This hearing is the time designated for the Council to consider
whether to assess such a civil penalty against Casey's General Store #2761, 204 North
Dubuque Street, Iowa City. The civil penalty for a third violation within a three-year period is
$1500.00 and a thirty -day retail cigarette permit suspension.
Prepared by: Jennifer Schwickerath, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52244, 319-356-5030
Resolution number: 25-125
Resolution assessing $1500.00 civil penalty and thirty -day retail
cigarette permit suspension against Casey's General Store
#2761
Whereas, on January 31, 2025, an employee of Casey's Marketing Company, dba
Casey's General Store #2761, 204 North Dubuque Street, Iowa City, violated Iowa Code
§453A.2(1) by selling or providing tobacco, tobacco products or cigarettes to a minor; and
Whereas, at the time of the violation, Casey's General Store #2761 was operating under
a retail cigarette permit issued by the City of Iowa City; and
Whereas, pursuant to Iowa Code §453A.22(2), an establishment which holds a retail
cigarette permit is subject to a civil penalty of $300.00 the first time its employee violates
Iowa Code §453A.2(1), after a hearing and proper notice; either a civil penalty of $1500.00
or a suspension of its permit for a period of thirty (30) days the second time its employee
violates §453A.2(1) within a two-year period, after a hearing and proper notice; and both
a $1500.00 civil penalty and a thirty (30) day permit suspension the third time its
employees violate §453A.2(1) within a three-year period, after a hearing and proper
notice; and
Whereas, a hearing was held on this date by the City Council to determine whether to
assess the civil penalty against Casey's General Store #2761 and at said hearing the
City Council heard the facts of the violation and the arguments of the retailer, if any; and
Whereas, this is the third such violation of an employee of Casey's General Store #2761
within a three-year period to be considered by the City Council under Iowa Code
§453A.22(2).
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that the
City Council after notice and hearing and pursuant to Iowa Code §453A.22(2) and
§453A.47A(11) hereby imposes a $1500.00 civil penalty and thirty day retail cigarette
permit suspension against Casey's General Store #2761.
Be it further resolved, that said retail cigarette permittee has twenty (20) days from the
date of this Resolution to pay the $1500.00 civil penalty in full to the City Clerk and to
deliver to the City Clerk its retail cigarette permit for service of a thirty -day suspension.
Be it further resolved, that the City Clerk will forward a copy of this Resolution to the City
Attorney's Office, which will then provide a copy of the same to the retail cigarette permit
holder via regular mail sent to the permit holder's place of business as it appears on the
application for a retail cigarette permit.
Passed and approved this 20tbay of May 2025.
Resolution No. 25-125
Page 2
Mayor Pro Tem
Approved by
Attest.
�
U�' ,��a.,,�.,rare---
f eputy City Clerk City Attorney° b-f ice _ 05/15/2025
It was moved by Moe and seconded by Harmsen the
Resolution be adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Alter
x Bergus
x Harmsen
x Moe
Salih
x Teague
x Weilein
Item Number: 10.d.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution assessing $300.00 civil penalty against Essentials Vape and Smoke Shop.
Prepared By: Rebecca Passavant, City Attorney's Office Administrative
Secretary
Reviewed By: Jennifer L. Schwickerath, Assistant City Attorney
Fiscal Impact: No impact
Staff Recommendation: Approval
Attachments: Resolution Assessing 1 st Offense Civil Penalty
Executive Summary:
Iowa Code Section 453A.22(2) provides that, after a hearing, a civil penalty shall be
assessed when an employee of a retailer violates Iowa Code Section 453A.2(1) by selling or
providing tobacco to a minor. This hearing is the time designated for the Council to consider
whether to assess such a civil penalty against Essentials Vape and Smoke Shop, 560
Highway 1 West, Iowa City. The civil penalty for a first violation within a two-year period is
$300.00.
Prepared by: Jennifer Schwickemth, Amt City Attomey, 410 E. Washington St., Iowa City, IA 52244, 319-356-5030
Resolution number: 25-126
Resolution assessing $300 civil penalty against Essentials
Vape and Smoke Shop
Whereas, on January 31, 2025, an employee of NG Stores LLC, dba Essentials Vape and
Smoke Shop, 560 Highway 1 West, Iowa City, violated Iowa Code §453A.2(1) by selling
or providing tobacco, tobacco products or cigarettes to a minor; and
Whereas, at the time of the violation, Essentials Vape and Smoke Shop was operating
under a retail cigarette permit issued by the City of Iowa City; and
Whereas, pursuant to Iowa Code §453A.22(2), an establishment which holds a retail
cigarette permit is subject to a civil penalty of $300.00 as a result of its employee violating
Iowa Code §453A.2(1), after a hearing and proper notice; and
Whereas, a hearing was held on this date by the City Council to determine whether to
assess the civil penalty against Essentials Vape and Smoke Shop and at said hearing
the City Council heard the facts of the violation and the arguments of the retailer, if any;
and
Whereas, this violation, is the first such violation of an employee of Essentials Vape and
Smoke Shop within a two-year period to be considered by the City Council under Iowa
Code §453A.22(2).
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that the
City Council after notice and hearing, pursuant to Iowa Code §453A.22(2) and
§453A.47A(11) hereby imposes a civil penalty in full, and if the civil penalty is not timely
paid any applicable permit held by the retailer shall automatically be suspended for a
period of (14) days, in addition to the $300.00 civil penalty.
Be it further resolved, that the City Clerk will forward a copy of this Resolution to the City
Attorney's Office, which will then provide a copy of the same to the retail cigarette permit
holder via regular mail sent to the permit holder's place of business as it appears on the
application for a retail cigarette permit.
Passed and approved this 20 cdlay of May 2025.
Mayor Pro Tom
Approved by
Attest:
City Clerk City Attorney' niice - 05115/2025
Resolution No. 25-126
Page 2
It was moved by aergus and seconded by Noe the
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
ABSENT:
x Alter
_
x
Bergus
x
Harmsen
x
Moe
x
Salih
Y
Teague
x
Weilein
Item Number: 10.e.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution assessing $300 civil penalty against Hawkeye Smoke and Liquor.
Prepared By: Rebecca Passavant, City Attorney's Office Administrative
Secretary
Reviewed By: Jennifer L. Schwickerath, Assistant City Attorney
Fiscal Impact: No impact
Staff Recommendation: Approval
Attachments: Resolution Assessing 1 st Offense Civil Penalty
Executive Summary:
Iowa Code Section 453A.22(2) provides that, after a hearing, a civil penalty shall be
assessed when an employee of a retailer violates Iowa Code Section 453A.2(1) by selling or
providing tobacco to a minor. This hearing is the time designated for the Council to consider
whether to assess such a civil penalty against Hawkeye Smoke and Liquor, 108 East College
Street, Iowa City. The civil penalty for a first violation within a two-year period is $300.00.
I C..
Prepared by: Jennifer Schwickerath, Asst. Ciry Attorney, 410 E. Washington St., Iowa City, IA 52244, 319-356-5030
Resolution number: 25-127
Resolution assessing $300 civil penalty against Hawkeye
Smoke and Liquor
Whereas, on January 31, 2025, an employee of Linn Food LLC, dba Hawkeye Smoke and
Liquor, 108 East College Street, Iowa City, violated Iowa Code §453A.2(1) by selling or
providing tobacco, tobacco products or cigarettes to a minor; and
Whereas, at the time of the violation, Hawkeye Smoke and Liquor was operating under a
retail cigarette permit issued by the City of Iowa City; and
Whereas, pursuant to Iowa Code §453A.22(2), an establishment which holds a retail
cigarette permit is subject to a civil penalty of $300.00 as a result of its employee violating
Iowa Code §453A.2(1), after a hearing and proper notice; and
Whereas, a hearing was held on this date by the City Council to determine whether to
assess the civil penalty against Hawkeye Smoke and Liquor and at said hearing the City
Council heard the facts of the violation and the arguments of the retailer, if any; and
Whereas, this violation, is the first such violation of an employee of Hawkeye Smoke and
Liquor within a two-year period to be considered by the City Council under Iowa Code
§453A.22(2).
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that the
City Council after notice and hearing, pursuant to Iowa Code §453A.22(2) and
§453A.47A(11) hereby imposes a civil penalty in full, and if the civil penalty is not timely
paid any applicable permit held by the retailer shall automatically be suspended for a
period of (14) days, in addition to the $300.00 civil penalty.
Be it further resolved, that the City Clerk will forward a copy of this Resolution to the City
Attorney's Office, which will then provide a copy of the same to the retail cigarette permit
holder via regular mail sent to the permit holder's place of business as it appears on the
application for a retail cigarette permit.
Passed and approved this 201:6y, of May , 2025.
Mayor Pxo Tem
Approved by
Attest:
O puty City Clerk City Attomey's Mice — Ob/15/2025
Resolution No. 25-127
Page 2
It was moved by aergus and seconded by Moe the
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
ABSENT:
x Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
x
Weilein
Item Number: 10.f.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution assessing $300.00 civil penalty against The Crown Liquor.
Prepared By: Rebecca Passavant, City Attorney's Office Administrative
Secretary
Reviewed By: Jennifer L. Schwickerath, Assistant City Attorney
Fiscal Impact: No impact
Staff Recommendation: Approval
Attachments: Resolution Assessing 1 st Offense Civil Penalty
Executive Summary:
Iowa Code Section 453A.22(2) provides that, after a hearing, a civil penalty shall be
assessed when an employee of a retailer violates Iowa Code Section 453A.2(1) by selling or
providing tobacco to a minor. This hearing is the time designated for the Council to consider
whether to assess such a civil penalty against The Crown Liquor, 324 East Washington
Street, Iowa City. The civil penalty for a first violation within a two-year period is $300.00.
Prepared by: Jennifer Schwickeralh, Asst. City Attorney, 410 E. Washington St, Iowa City, IA 52244, 319-356-5030
Resolution number: 25-128
Resolution assessing $300.00 civil penalty against The Crown
Liquor
Whereas, on January 31, 2025, an employee of Crown Retail LLC, dba The Crown Liquor,
324 East Washington Street, Iowa City, violated Iowa Code §453A.2(1) by selling or
providing tobacco, tobacco products or cigarettes to a minor; and
Whereas, at the time of the violation, The Crown Liquor was operating under a retail
cigarette permit issued by the City of Iowa City; and
Whereas, pursuant to Iowa Code §453A.22(2), an establishment which holds a retail
cigarette permit is subject to a civil penalty of $300.00 the first time its employee violates
Iowa Code §453A.2(1); and
Whereas, a hearing was held on this date by the City Council to determine whether to
assess the civil penalty against The Crown Liquor and at said hearing the City Council
heard the facts of the violation and the arguments of the retailer, if any; and
Whereas, this is the first such violation of an employee of The Crown Liquor within a
two-year period to be considered by the City Council under Iowa Code §453A.22(2).
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that the
City Council, after notice and hearing and pursuant to Iowa Code §453A.22(2) and
§453A.47A(11) hereby imposes a civil penalty in full, and 9 the civil penalty is not timely
paid any applicable permit held by the retailer shall automatically be suspended for a
period of (14) days, in addition to the civil penalty.
Be it further resolved, that the City Clerk will forward a copy of this Resolution to the City
Attorney's Office, which will then provide a copy of the same to the retail cigarette permit
holder via regular mail sent to the permit holder's place of business as it appears on the
application for a retail cigarette permit.
Passed and approved this20thday of May , 2025.
Mayor Pro Tem
Approved by
Attest:
D City Clerk City Attorney' ffice - 05/15/2025
Resolution No. 25-128
Page 2
It was moved by Moe and seconded by Matmsen the
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
ABSENT:
x Alter
x
Bergus
x
Harmsen
x
Moe
—�
Salih
—37—
Teague
x
Weilein
Item Number: 10.g.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
May 20, 2025
Resolution assessing $300 civil penalty against The Smokin Outlet Tobacco and Vapor Shop.
Prepared By: Rebecca Passavant, City Attorney's Office Administrative
Secretary
Fiscal Impact: No impact
Staff Recommendation: Approval
Attachments: Resolution Assessing 1 st Offense Civil Penalty
Executive Summary:
Iowa Code Section 453A.22(2) provides that, after a hearing, a civil penalty shall be
assessed when an employee of a retailer violates Iowa Code Section 453A.2(1) by selling or
providing tobacco to a minor. This hearing is the time designated for the Council to consider
whether to assess such a civil penalty against The Smokin Outlet Tobacco and Vapor Shop,
221-223 S Gilbert St, Iowa City. The civil penalty for a first violation within a two-year period
is $300.00.
Prepared by: Jennifer Schwickerath, Asst. City A00mey, 410 E. Washington St., Iowa City, IA 52244, 319-356-5030
Resolution number: 25-129
Resolution assessing $300 civil penalty against The Smokin
Outlet Tobacco and Vapor Shop
Whereas, on January 31, 2025, an employee of Taqdeer Smoke Time LLC, dba The
Smokin Outlet Tobacco and Vapor Shop, 221-223 S Gilbert St, Iowa City, violated Iowa
Code §453A.2(1) by selling or providing tobacco, tobacco products or cigarettes to a
minor; and
Whereas, at the time of the violation, The Smokin Outlet Tobacco and Vapor Shop was
operating under a retail cigarette permit issued by the City of Iowa City; and
Whereas, pursuant to Iowa Code §453A.22(2), an establishment which holds a retail
cigarette permit is subject to a civil penalty of $300.00 as a result of its employee violating
Iowa Code §453A.2(1), after a hearing and proper notice; and
Whereas, a hearing was held on this date by the City Council to determine whether to
assess the civil penally against The Smokin Outlet Tobacco and Vapor Shop and at said
hearing the City Council heard the facts of the violation and the arguments of the retailer,
if any; and
Whereas, this violation, is the first such violation of an employee of The Smokin Outlet
Tobacco and Vapor Shop within a two-year period to be considered by the City Council
under Iowa Code §453A.22(2).
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that the
City Council after notice and hearing, pursuant to Iowa Code §453A.22(2) and
§453A.47A(11) hereby imposes a civil penalty in full, and 'if the civil penalty is not timely
paid any applicable permit held by the retailer shall automatically be suspended for a
period of (14) days, in addition to the $300.00 civil penalty.
Be it further resolved, that the City Clerk will forward a copy of this Resolution to the City
Attorney's Office, which will then provide a copy of the same to the retail cigarette permit
holder via regular mail sent to the permit holder's place of business as it appears on the
application for a retail cigarette permit.
20th
Passed and approved this day of MaY 2025.
Mayor Pro Teat
Approved by
Attest: '
D uty City Clerk City Attorney' O ice - 05/15/2025
Resolution No. 25-129
Page 2
It was moved by Bergus and seconded by weilein the
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
ABSENT:
x Alter
x
Bergus
x
Harmsen
—37-
Moe
—7�
Salih
Teague
Weilein
x
6.,
Prepared by: Danan Nagle-Gamm, Director of Transportation Sewib , 1200 S. Riverside Drive, Iowa City, IA 52246
(319)356-5156
Resolution number 25-115
Resolution authorizing the Mayor to sign and the City Clerk to attest
the FY2026 — FY2028 Agreement between the City of Iowa City and
the City of University Heights for the provision of transit service within
the corporate limits of University Heights
Whereas, Chapter 28E, Code of Iowa, provides, in substance, that any power which may be
exercised by a public agency of this state may be exercised jointly with another public agency
having such power; and
Whereas, it is in the mutual interest of the City of Iowa City and the City of University Heights to
encourage the use of public transit by residents of University Heights; and
Whereas, the parties have negotiated a contract for transit service in FY2026 - FY2028 at an rate
of $52,946.80 in FY26, $58,758.33 in FY27, and $64,569.86 in FY28, a copy of which is attached
and incorporated herein.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
The attached FY2026 - FY2028 28E Agreement for transit services between the City
of Iowa City, Iowa and the City of University Heights, Iowa is hereby approved, and the
Mayor is hereby authorized to execute and the City Clerk to attest in duplicate same
on behalf of the City of Iowa City.
2. The City Clerk is directed to file a copy of said agreement with the Secretary of the
State of Iowa, as required by Iowa Code Chapter 28E.
Passed and approved this 20th day of
i
Attest:
puty City Clerk
May 2025.
Mayor Pro Tem
Approved by:
City Attonr s Office
(Jennifer Schwickerath - 05/15/2025)
Resolution No. 25-115
Page 2
It was moved by Moe and seconded by Rarmsen the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays: Absent:
x Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
x
Weilein