HomeMy WebLinkAbout2018-05-15 Resolutiontfd(L)
Prepared by: Dave Panos, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319)3565145
Resolution No. 18-135
Resolution awarding contract and authorizing the Mayor to sign
and the City Clerk to attest a contract for construction of the
Asphalt Resurfacing 2018 — US Hwy 1 (Burlington Street and
Governor Street) Project
Whereas, LL Pelling Company of North Liberty, Iowa has submitted the lowest responsible bid of
$2,989,880.24 for construction of the above-named project; and
Whereas, funds for this project are available in the Pavement Rehabilitation Fund account
#S3824; and
Whereas, the Iowa Department of Transportation is providing funding through agreement No.
#2018-16-197; and
Whereas, 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.
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 LL
Felling Company, 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.
Passed and approved this 15th day of May 2018
A eproved y
��
Attest : CCS e >� /tom — GC-[— 7� , _-- ) /�
City Clerk U City Attorney's Office
It was moved by Botchway and seconded by Taylor the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays: Absent:
X
Botchway
X
Cole
X
Mims
X
Salih
X
Taylor
X
Thomas
X
Throgmorton
CITY OF IOWA C I T v4db2s
-m COUNCIL ACTION REPOR4�
May 15, 2018
Resolution awarding contract and authorizing the Mayor to sign and
the City Clerk to attest a contract for construction of the Asphalt
Resurfacing 2018 — US Hwy 1 (Burlington Street and Governor Street)
Project
Prepared By: Dave Panos - Sr. Civil Engineer
Reviewed By: Jason Havel - City Engineer, Ron Knoche - Public Works Director
Simon Andrew — Assistant to the City Manager
Fiscal Impact: The cost for this project is $2,989,880.24 and will be funded with
Pavement Rehabilitation Fund Account #S3824.
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution, Engineer's Report
Executive Summary:
Plans, Specifications, Form of Agreement and Estimate of Cost for the Asphalt
Resurfacing 2018 — US Hwy 1 (Burlington Street and Governor Street) Project were
approved at the April 17, 2018 Council Meeting.
This is a joint Iowa Department of Transportation and City of Iowa City maintenance project that
concentrates on asphalt resurfacing along Hwy 1 in Iowa City along Burlington Street from Van
Buren Street to Governor Street, and along Governor Street from Burlington Street to Dodge
Street. This project will be referenced by the Iowa Department of Transportation as Project
No. NHSN-001-5(116) - - 2R-52.
One (1) bid was submitted for the May 9, 2018 letting, and LL Pelling of North Liberty, Iowa
submitted the lowest responsible bid of $2,989,880.24. The engineer's estimate of construction
costs was $2,972,900.
Staff recommends awarding the contract for the Asphalt Resurfacing 2018 — US Hwy 1
(Burlington Street and Governor Street) Project to LL Pelling of North Liberty, Iowa. This
project is anticipated to be completed by October 2018.
Background / Analysis:
The Asphalt Resurfacing 2018 — US Hwy 1 (Burlington and Governor Street) Project will
include work at the following locations:
Street Milling and 3" Overlay
US Hwy 1 (Burlington Street) from Van Buren Street to Governor Street
US Hwy 1 (Governor Street) from Burlington Street to Dodge Street
Burlington Street from Governor Street to Summit Street
Johnson Street from Burlington Street to Bowery Street
Court Street from Johnson Street to Dodge Street
CITY OF IOWA CITY
COUNCIL ACTION REPORT
Chipsealing
Taft Avenue from American Legion Road to Rochester Avenue
Napoleon Street from Sand Road to South Wastewater Treatment Plant
Ridge Street from Ginter Avenue to Highland Avenue
Maier Avenue from Rohret Road to Kessler Road
Windsor Ridge Park Trail
Project Timeline:
Award Date — May 15, 2018
Construction Start — June 11, 2018
NOTICE TO BIDDERS
ASPHALT RESURFACING 2018 — HWY 1
(BURLINGTON STREET AND GOVERNOR STREET)
Sealed proposals will be received by the City Clerk of the City of Iowa City, Iowa, until 3:00 P.M.
on the 9T" day of May 2018. Sealed proposals will be opened immediately thereafter. Bids
submitted by fax machine shall not be deemed a "sealed bid" for purposes of this Project.
Proposals received after this deadline will be returned to the bidder unopened. Proposals will be
acted upon by the City Council at a meeting to be held in the Emma J. Hanrat Hall at 7:00 P.M. on
the 15th day of May, 2018, or at special meeting called for that purpose.
The Project will involve sanitary sewer and storm sewer replacement, intake top replacement,
pavement milling and resurfacing, and ADA curb ramp replacement along Burlington Street,
Governor Street, Johnson Street, and Court Street in Iowa City. This work will include the
following estimated quantities: 9,567 tons of asphalt cement concrete, 29,475 sq. yards of
pavement milling, 3,391 feet of pcc curb and gutter replacement, 1,868 sq. yards of pcc sidewalk
and curb ramp pavement removal and replacement. The Project will also include street sealcoat
work along Taft Avenue, Ridge Park, Napoleon Street, Maier Street in Iowa City. This work will
include the following estimated quantities: 13,904 GAL. of chip sealing binder, 700 tons of chip
seal cover aggregate, traffic control, other related work.
All work is to be done in strict compliance with the plans and specifications prepared by the City of
Iowa City, which have heretofore been approved by the City Council, and are on file for public
examination in the Office of the City Clerk.
Each proposal shall be completed on a form furnished by the City and must be submitted in a
sealed envelope. In addition, a separate sealed envelope shall be submitted containing a
completed Bidder Status Form and a bid bond executed by a corporation authorized to contract as
a surety in the State of Iowa, in the sum of 10% of the bid. The bid security shall be made
payable to the TREASURER OF THE CITY OF IOWA CITY, IOWA, and shall be forfeited to the
City of Iowa City in the event the successful bidder fails to enter into a contract within ten (10)
calendar days of the City Council's award of the contract and post bond satisfactory to the City
ensuring the faithful performance of the contract and maintenance of said Project, if required,
pursuant to the provisions of this notice and the other contract documents. The City shall retain
the bid security furnished by the successful bidder until the approved contract form has been
executed, a bond has been filed by the bidder guaranteeing the performance of the contract, and
the contract and bond have been approved by the City. The City shall promptly return the checks
or bidder's bonds of unsuccessful bidders to the bidders as soon as the successful bidder is
determined or within thirty days, whichever is sooner.
The successful bidder will be required to furnish a bond in an amount equal to one hundred
percent (100%) of the contract price, said bond to be issued by a responsible surety approved by
the City, and shall guarantee the prompt payment of all materials and labor, and also protect and
save harmless the City from all claims and damages of any kind caused directly or indirectly by-
the
ythe operation of the contract, and shall also guarantee the maintenance of the improvement for a
period of Two (2) year(s) from and after its completion and formal acceptance by the City Council.
The following limitations shall apply to this Project:
AF -1
Phase 1:
Start: June 18, 2017
Sanitary and Storm Sewer Repairs on Burlington Street and Governor Street
Milling and Overlay, Street Patching, Curb, and Curb Ramps along Governor, Burlington, Johnson, Court
Street
Working Days = 120 days
Liquidated Damages: $500 per day
Phase 2: Chipseal Surfacing
Early start: July 1, 2017
Working Days = 30 Days
Liquidated Damages: $500 per day
The plans, specifications and proposed contract documents may be examined at the office of the
City Clerk. Copies of said plans and specifications and form of proposal blanks may be secured
at the Office of Rapids Reproductions/Technographics of Iowa City located at 415 Highland Ave
Suite 100, by bona fide bidders. A JL5.00 fee is required for each set of plans and specifications
provided to bidders or other interested persons. The fee shall be in the form of a check, made
payable to Technigraphics. The fee is refundable if returned within 14 days of award of the
project by City Council in re -usable condition.
Prospective bidders are advised that the City of Iowa City desires to employ minority contractors
and subcontractors on City projects. A listing of minority contractors can be obtained from the
Iowa Department of Inspections and Appeals at (515) 281-5796 and the Iowa Department of
Transportation Contracts Office at (515) 239-1422.
Bidders shall list on the Form of Proposal the names of persons, firms, companies or other parties
with whom the bidder intends to subcontract. This list shall include the type of work and
approximate subcontract amount(s).
The Contractor awarded the contract shall submit a list on the Form of Agreement of the
proposed subcontractors, together with quantities, unit prices and extended dollar amounts.
By virtue of statutory authority, preference must be given to products and provisions grown and
coal produced within the State of Iowa, and to Iowa domestic labor, to the extent lawfully required
under Iowa Statutes. The Iowa reciprocal resident bidder preference law applies to this Project.
The City reserves the right to reject any or all proposals, and also reserves the right to waive
technicalities and irregularities.
Posted upon order of the City Council of Iowa City, Iowa
KELLIE K. FRUEHLING, CITY CLERK
AF -2
Julie Voparil
From: Julie Voparil
Sent: Wednesday, April 18, 2018 9:29 AM
To: 'mbiplanroom-dsm@mbionline.com'
Subject: Notice to Bidders - Asphalt Resurfacing 2018 - Hwy. 1
Attachments: Notice to Bidders 2018 Asphalt Resurfacing - BURGOV.pdf
Please post the attached on 4/19 for:
Asphalt Resurfacing 2018 — Hwy. 1(Burlington Street and Governor Street)
Julie Voparil
Deputy City Clerk
City of Iowa City
410 E. Washington Street
Iowa City, IA 52240
(319)356-5040
Prepared by: Scott Sovers, Sr. Civil Engineer, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5142
Resolution No. 18-136
Resolution accepting the work for the Iowa River Raw Water
Main Conversion Project
Whereas, the Engineering Division has recommended that the work for construction of the Iowa
River Raw Water Main Conversion Project, as included in a contract between the City of Iowa City
and Calacci Construction Company, Inc. of Iowa City, Iowa, dated May 9, 2016, be accepted; and
Whereas, the Engineer's Report and the performance and payment bond have been filed in the
City Clerk's office; and
Whereas, funds for this project are available in the Iowa City Gateway Project account # S3809;
and
Whereas, the final contract price is $147,590.30.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that said
improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 15th day of May, 2018
l/ /fi . /
Ma or
Attes �S
City Clerk
Approved by
City Attorney's Office
It was moved by Botchway and seconded by Taylor the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays:
Absent:
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
L{ rj (3)
I 1 CITY OF IOWA CIT-
`'Im
,, COUNCIL ACTION REP0105
4do,
May 15, 2018
Resolution accepting the work for the Iowa River Raw Water Main
Conversion Project
Prepared By: Scott Sovers - Sr. Civil Engineer
Reviewed By: Jason Havel - City Engineer
Ron Knoche - Public Works Director
Simon Andrew — Assistant to the City Manager
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution, Engineer's Report
Executive Summary:
The project involved the conversion of a raw water main to a finished water main, as well as
the abandonment of the existing finished water main, along the east bank of the Iowa River
between Davenport Street and Park Road.
Work on the project was completed by Calacci Construction Company, Inc. of Iowa City,
Iowa, in substantial accordance with the plans and specifications. The Engineer's Report and
Performance and Payment bonds are on file with the City Clerk.
❖ Project Estimated Cost: $ 170,000.00
Project Bid Received: $ 184,562.00
Project Actual Cost: $ 147,590.30
ENGINEER'S REPORT
May 3, 2018
:,r 1
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
(319) 356 - 5009 FAX
www.icgov.org
City Clerk
Iowa City, Iowa
Re: Iowa River Raw Water Main Conversion Project
Dear City Clerk:
I hereby certify that the construction of the Iowa River Raw Water Main Conversion Project has
been completed by Calacci Construction Company, Inc. of Iowa City, IA in substantial
accordance with the plans and specifications prepared by Veenstra & Kimm, Inc.
The project was bid as a unit price contract and the final contract price is $ 147,590.30.
There was one (1) change or extra work order for the project as described below:
Installation of appurtenances on the existing water main
that was buried deeper than anticipated. $ 22,119.97
I recommend that the above -referenced improvements be accepted by the City of Iowa City.
Sincerely,
�r- //-
Jason Havel, P.E.
City Engineer
Prepared by: Dave Panos, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5145
Resolution No. 18-137
Resolution accepting the work for the Davenport Brick Street
Reconstruction Project
Whereas, the Engineering Division has recommended that the work for construction of the
Davenport Brick Street Reconstruction Project, as included in a contract between the City of Iowa
City and All American Concrete of West Liberty, Iowa, dated June 6, 2017, be accepted; and
Whereas, the Engineer's Report and the performance and payment bond have been filed in the
City Clerk's office; and
Whereas, funds for this project are available in the Davenport Brick Street Reconstruction account
#S3850; and
Whereas, the final contract price is $ 885,874.27.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that said
improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 15th day of
2018
MaKor
Approved by
Attest:
�� - J _/y
City Clerk City Attorney's Office
It was moved by Botchway and seconded by Taylor the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays:
Absent:
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
CITY OF IOWA CITY
COUNCIL ACTION REPOF
May 15, 2018
Resolution accepting the work for the Davenport Brick Street
Reconstruction Project
Prepared By:
Dave Panos - Sr. Civil Engineer
Reviewed By:
Jason Havel - City Engineer
Ron Knoche - Public Works Director
Simon Andrew — Assistant to the City Manager
Fiscal Impact:
None
Recommendations:
Staff: Approval
Commission: N/A
Attachments:
Resolution, Engineer's Report
Executive Summary:
The project has been completed by All American Concrete of West Liberty, Iowa, in
substantial accordance with the plans and specifications. The Engineer's Report and
Performance and Payment bonds are on file with the City Clerk.
❖ Project Estimated Cost: $ 990,000.00
Project Bid Received: $ 926,881.40
Project Actual Cost: $ 885,874.27
The project included three change orders that addressed issues discovered during
construction, including a sanitary sewer service repair, sidewalk curb, and replacement of river
rock landscaping.
Background / Analysis:
This project replaced the brick street surface and upgraded storm sewer and water utilities
along Davenport Street from Linn Street to Clinton Street. Work on this project also
included replacement of curb and gutter and replacement of curb ramps to current ADA
standards.
� r �
+. Aft= 1sQQ
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
(319) 356 - 5009 FAX
www.icgov.org
ENGINEER'S REPORT
May 10, 2018
City Clerk
Iowa City, Iowa
Re: Davenport Brick Street Reconstruction Project
Dear City Clerk:
I hereby certify that the construction of the Davenport Brick Reconstruction Project has been
completed by All American Concrete of West Liberty, Iowa in substantial accordance with the
plans and specifications prepared by McClure Engineering Company of North Liberty, Iowa.
This project was bid as a unit price contract and the final contract price is $ 885,874.27.
There were a total of three (3) change or extra work orders for the project:
Change Order #1 - Sanitary Sewer Service Cleanout $2,383.17
Change Order#2 - Sidewalk Curb $1,230.00
Change Order #3 — River Rock $545.00
1 recommend that the above -referenced improvements be accepted by the City of Iowa City.
Sincerely,
Jam son Havel, P.E.
City Engineer
CITY OF IOWA CITE
COUNCIL ACTION REPO mTrf 4d(-
May 15, 2018
Resolution approving, authorizing and directing the Mayor to execute and the
City Clerk to attest an Agreement by and between the City of Iowa City and
AECOM to provide engineering consultant services for the McCollister
Boulevard — Gilbert Street to Sycamore Street Project.
Prepared By: Dave Panos - Sr. Civil Engineer
Reviewed By: Jason Havel - City Engineer
Ron Knoche - Public Works Director
Ashley Monroe — Assistant City Manager
Fiscal Impact: $329,600
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
This agreement authorizes AECOM to provide design engineering services related to the
McCollister Boulevard — Gilbert Street to Sycamore Street Project. The project includes the
extension of McCollister Boulevard from its current terminus east of Gilbert Street to connect with
the new roundabout on Sycamore Street, and will fulfill a need for better east -west traffic
circulation in the South District. The scope of the project will include construction of an arterial
street with bicycle facilities, sidewalk, storm sewer, water main and a new traffic signal at the
Gilbert Street and McCollister Boulevard intersection. The consultant services agreement is for
$329,600 and will be funded by General Obligation Bonds.
Project Background:
McCollister Boulevard currently ends east of Gilbert Street, but when extended, it will serve as
an arterial connection to Sycamore Street. Due to the construction of a new school and
projected growth in this area, Iowa City is now ready to construct the extension of McCollister
Boulevard to Sycamore Street. The roadway will serve as a catalyst for further residential
development in the South District, and will also reduce traffic pressure on Langenberg Avenue.
The area of the new roadway is currently open farm land located outside Iowa City corporate
limits.
The length of construction is approximately 3,250 feet, and recent Sycamore Street traffic counts
indicated a total average daily traffic (ADT) of 4,460, with 3% truck traffic. Projected volumes for the
year 2030 are between 7,200 and 8,300 vehicles per day.
Design parameters will reflect the direction of Council at the April 2, 2018 work session. Staff will
report back to Council for further direction on design if necessary.
)-Idt&)
Prepared by. Jason Havel, City Engineer, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5410
RESOLUTION NO. 18-139
Resolution adopting the Statewide Urban Design and
Specifications (SUDAS) Specifications and City of Iowa City
Supplemental Specifications
Whereas, the City of Iowa City desires to use SUDAS specifications for the construction of public
improvements; and
Whereas, the City of Iowa City has developed supplemental specifications to provide additional
details and revisions for the application of SUDAS specifications on public improvement projects
within the City of Iowa City; and,
Whereas, said specifications and supplemental specifications have been placed on file with the
City Engineer's Office.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
The SUDAS Construction Specifications and the City of Iowa City Supplemental
Specifications on file with the Office of the City Engineer and dated May 2018 are hereby
approved and shall be used for all public improvement projects and construction within the
public right-of-way within the City of Iowa City.
2. The construction specifications shall be kept on file in the City Engineer's Office and shall
be made available to City staff and the public for use in the construction of public
improvements and construction within the public right-of-way within the City of Iowa City.
Passed and approved this 15th day of May 2018
M or
Attest �.
City Clerk
proved by
City Attorney's Office
It was moved by Botchwav and seconded by Taylor the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Botchway
x Cole
% Mims
% Salih
Resolution No. 18-139
Page 2
x Taylor
x Thomas
x Throgmorton
I 1 CITY OF IOWA CITY
COUNCIL ACTION REPO 4d('6)
May 15, 2018
Resolution adopting the Statewide Urban Design and Specifications
(SUDAS) Specifications and City of Iowa City Supplemental
Specifications
Prepared By: Jason Havel - City Engineer
Reviewed By: Ron Knoche - Public Works Director
Ashley Monroe — Assistant City Manager
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
This item adopts the Statewide Urban Design and Specifications (SUDAS) specifications as the
basis for construction work on public improvement projects and within the right-of-way in Iowa
City. In addition, the City has developed supplemental specifications to revise the general
specifications in order to provide additional detail and guidance to contractors completing work
within Iowa City.
While SUDAS includes both design and specifications manuals, this item includes adoption of
construction specifications only. It is anticipated that adoption of the design manual will be
considered at a separate Council meeting later this year.
Background / Analysis:
The goal of SUDAS is to develop common urban standards for public improvements within
urban communities in the State of Iowa, including sanitary sewers and water mains, streets and
sidewalks, utility locations, signalization, drainage and erosion control, etc. The Institute for
Transportation (InTrans) at Iowa State University maintains and updates the SUDAS manuals,
and developing and maintaining the SUDAS manuals is the result of a lengthy and painstaking
effort by more than 300 stakeholders across the state. Some of the benefits of adopting SUDAS
specifications include:
• Uniformity of urban design and specifications across the state
• Reduction of contractor confusion and mistakes due to differing specifications;
encourages more bidders
• Mechanism to be proactive in research and studies for new and improved urban design
and specifications
• Method for study and statewide implementation of latest techniques and material use
• Forum that allows state and local governments to collaborate with industry
• Reduced costs through uniformity, understanding, and acceptance
• InTrans keeps the statewide manuals up to date. This relieves individual communities
of that burden and expense while ensuring they are informed about new products and
procedures.
Prepared by: Eleanor M. Dilkes, City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 18-140
Resolution approving and authorizing the Mayor to sign and the
Deputy City Clerk to attest Amendment No. 1 to the City Clerk's
Employment Agreement to establish allowable annual vacation
accrual.
Whereas, the City Clerk's employment agreement provides for the maximum annual vacation
accrual that is available to all Administrative employees (192); hours over that amount are lost;
and,
Whereas, due to the understaffing of the Clerk's office following former Clerk Marian Karr's
retirement, and the demands of the new position since being appointed as Clerk on June 20,
2017, the Clerk has been able to take only limited vacation time resulting in accruals of
approximately 320 hours on July 1, 2018; and,
Whereas, the City Council and the City Clerk have agreed to amend the Employment
Agreement of the City Clerk to provide for 320 hours of annual vacation accrual and maximum
payment when employment terminates.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
Amendment No. 1 to the City Clerk's Employment Agreement, which is attached hereto and made
a part of hereof, is hereby approved as to form and content; and
The Mayor and City Clerk are authorized and directed to execute said Amendment No. 1 for and
on behalf of the City of Iowa City, Iowa.
Passed and approved this 15th day of
ATTEST:
�eP —CITY Y CLERK
App oved by
City Attorney's Office
May
2018
MAYOR
qr_i ("l"
Resolution No. 18-140
Page 2
It was moved by Botchway and seconded by Taylor the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT
On this 15thday of May , 2018 the City of Iowa City, Iowa and Kellie Fruehling, the
City Clerk, do hereby amend the Employment Agreement between them dated June 20,
2017.
Section 6 of said Employment Agreement is amended by inserting the underlined
language below:
Section 6: Vacation, Sick, Holidays and Retirement
A. Except as provided in paragraph B of this section. Employee shall accrue, and have
credited to her personal account, vacation and sick leave equal to that which is provided
to all other administrative employees of the City, and shall receive holiday pay on the
same terms as that which is provided to all other administrative employees of Iowa City.
The Employee will receive any retirement benefit required by Iowa law and the ability to
access and contribute to a deferred compensation plan to the same extent and on the
same terms as other administrative employees of the City.
B. The Employee is entitled to accrue unused vacation leave up to a maximum of 320
hours, and in the event the Employee's employment is terminated, either voluntarily or
involuntarily, the Employee shall be compensated for all accrued vacation time not
exceeding 320 hours.
By: � w+
M or
b
ATTEST:
P �t� CITY CLERK
By.
Kel ie Fruehling
/proved o 0
( City Attorney
r 1 CITY OF IOWA CITY
-^Vat� COUNCIL ACTION REPO 4,
May 15, 2018
Resolution approving and authorizing the Mayor to sign and the
Deputy City Clerk to attest Amendment No. 1 to the City Clerk's
Employment Agreement to establish allowable annual vacation
accrual.
Prepared By: Eleanor M. Dilkes, City Attorney
Reviewed By: Simon Andrew, Acting City Manager
Fiscal Impact: 128 hours of vacation or payout when employment terminates
Recommendations: Staff: Approval
Commission: not applicable
Attachments: Resolution and Amendment
Executive Summary:
The City Clerk's employment agreement allows for the annual vacation accrual that is available
to all Administrative employees (192). On July 1 vacation hours exceeding the annual accrual
are lost. Due to the understaffing of the Clerk's office following former Clerk Marian Karr's
retirement, and the demands of the new position since being appointed as Clerk on June 20,
2017, the Clerk has been able to take only limited vacation time resulting in estimated accruals
of 320 hours on July 1, 2018. The amendment to the Employment Agreement will allow for
annual accrual by the City Clerk and maximum payment when employment terminates of 320
hours.
)Id(2)
Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
Resolution No. 18-141
Resolution approving an agreement with the Downtown District
to allow the sale, consumption, and possession of beer and wine
during the Block Party on City streets.
Whereas, section 4-5-3D of the City Code allows private entities to sell, consume, and possess
alcohol in a city park, on public right-of-way or on a city ground excluding public buildings under
limited circumstances;
Whereas, the Downtown District would like to be able to sell beer and wine in a demarcated
area on a City street during the Block Party on City streets and City Plaza (aka, the ped mall);
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 15th day of May , 2018.
�
M or
'J Approved by
City Clerk City Attomey's Office
Resolution No. 18-141
Page 2
It was moved by Botchway and seconded by Taylor the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
%
Botchway
%
Cole
%
Mims
x
Salih
x
Taylor
%
Thomas
%
Throgmorton
Drafted by: Susan Dulek, Asst. City Attorney, 410 E. Washington St, Iowa City, IA 52240;319/3565030
2018 AGREEMENT
BETWEEN THE CITY OF IOWA CITY AND IOWA CITY DOWNTOWN SELF -
SUPPORTED MUNICIPAL IMPROVEMENT DISTRICT
TO ALLOW THE TEMPORARY AND LIMITED SALE, CONSUMPTION, AND
POSSESSION OF BEER AND WINE DURING THE DOWNTOWN BLOCK PARTY
This Agreement is made between Iowa City Downtown Self Supported Municipal
Improvement District, d/b/a Iowa City Downtown District ("District") and the City of Iowa
City, a municipal corporation ("City"), in Iowa City, Iowa.
WHEREAS, District is an "authorized entity" as that term is defined in section 4-5-
3D of the City Code;
WHEREAS, District has applied for a license to sell beer and wine during the
Downtown Block Party to be held in the downtown area; and
WHEREAS, the parties wish to enter into an agreement to allow District to sell beer
and wine and to allow persons to possess and consume beer and wine under limited
circumstances on downtown City streets and City Plaza.
THE PARTIES THEREFORE AGREE AS FOLLOWS:
1. Authorized Site. In consideration for District's promises herein, the City agrees
to allow District control over the area bounded on the north by the parking
spaces on southern side of Iowa Avenue, on the east by the building face on the
eastern side of Linn Street, on the south by the building face on the northern
side of City Plaza (aka, the ped mall), and on the west by the middle of Clinton
Street as shown on the diagram which is attached, marked Exhibit A, and
incorporated herein ("authorized site").
2. Term. This agreement shall be in effect only on June 23, 2018 from 5:00 pm to
11:00 pm.
3. Access. District shall take all reasonable steps to ensure that only persons over
twenty-one (21) years of age have access to beer and wine. Said reasonable
steps include, but are not limited to, ensuring that: a) all persons over twenty-one
(21) years of age shall be provided a wrist band and an approved container upon
purchase of beer or wine; and b) no one may possess an open container of beer
or wine unless it is in an approved container and the person is wearing a wrist
band. Approved container means a cup that is approved by the City prior to the
event. If the District observes anyone in possession of an open container of
beer or wine (or any type of alcohol) that is not in an approved container or
anyone in possession of an approved container with beer or wine who does not
have a wrist band, the District shall immediately request that the person pour out
the liquid. If the person refuses to do so, the District shall immediately contact a
member of the Iowa City Police Department who is present at the event.
4. License. This agreement is void if District does not have a license to sell beer
and alcohol on the authorized site on June 23, 2018.
5. Alcohol Restrictions. District acknowledges that the authorized site is subject to
all applicable alcohol restrictions in the City Code and the Iowa Code.
6. Advertisement. District shall not, nor shall it allow anyone to, erect or place any
sign or other matter advertising any brand of alcoholic liquor, beer, or wine upon
the authorized site with the exception that signage may be placed on the interior
and exterior tent walls. Sponsorship signage unrelated to businesses selling
alcohol, beer, wine, or tobacco will be allowed.
7. Inspection. City staff, including the Iowa City Police Department, may
periodically inspect the authorized site without any prior notice to determine
compliance with the terms of this agreement.
8. Debris and Trash. District 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 District fails to do so and if City staff has to collect the debris and trash
from the authorized sites, District may be responsible for the cost incurred by the
City, including staff time, and shall pay the costs in full within thirty (30) days of
receiving an invoice.
9. Security. District shall reimburse the City for the costs of ten (10) police officers
at $69.00 per hour per officer from 5:00 pm to 12:00 midnight. Payment is due
within thirty (30) days of receipt of an invoice.
10. No Smoking. Smoking is prohibited by City Code in City Plaza, aka the ped
mall, but not in the alleys. Smoking is also prohibited by City Code on the
sidewalk to the east of the Iowa City Public Library. Additionally, the use of
electronic cigarettes is prohibited in these two areas. Electronic cigarette
means vapor product as defined in Section 453A.1 of the Code of Iowa (2017).
11. Temporary Toilet Facilities and Hand Washing Stations. District shall provide at
its sole cost seventeen (17) temporary toilet facilities in the five (5) locations
shown on Exhibit A, including one (1) that is handicap accessible in three (3)
locations. District shall further provide at its sole cost two (2) hand washing stations
adjacent to the facilities unless the facilities themselves are equipped with hand washing
stations.
12. Exits. District shall maintain exits in the authorized site and post "exit" signs at
all exits, with the location and size of the signs to be approved by the City Fire
Department. The District shall have personnel, volunteers, or contractors such
as private security at every exit. Each exit must be a minimum 36 inches in
width.
13. Anchoring and Drilling. District shall not drill any holes into the pavement or the
sidewalk and shall not anchor a tent tie down or pole to the pavement or the
sidewalk.
14. Fencing. The authorized site shall be enclosed by fencing as approved by the
City.
15. Insurance.
a) Premises Insurance. On June 23, 2018, District shall carry
comprehensive general liability insurance for bodily injury and property
damage on the authorized site in the amount of $1,000,000 (one million
dollars) for each occurrence and $2,000,000 (two million dollars) in the
aggregate and shall name the City as an additional insured. District shall
furnish a copy of a certificate of insurance for same, satisfactory to the
City at the time of execution of this agreement. District shall notify the
2
City 1 week before cancellation of said insurance, and said cancellation
shall automatically terminate this Agreement.
b) Dram Shop Insurance. On June 23, 2018, District shall carry "dram shop"
insurance in compliance with Iowa Code section 123.92 (2017) in the
amount of $500,000 (five hundred thousand dollars). District shall
provide 1 week notice to the City before cancellation of said insurance,
and said cancellation shall automatically terminate this Agreement.
G) Governmental Immunities Endorsement. District shall obtain a
governmental immunities endorsement that meets the requirements set
forth on Exhibit B, which is attached and incorporated herein.
16. Indemnification. District shall pay on behalf of the City all sums which the
City shall be obligated to pay by reason of any liability imposed upon the City
for damages of any kind resulting from the use of the authorized sight or sale,
consumption, or possession of beer on the authorized site, whether sustained
by any person or person, caused by accident or otherwise and shall defend
at its own expense and on behalf of the City, its officers, employees and
agents any claim against the City, its officers, employees, and agents arising
out of the use of the authorized site or sale, consumption, or possession of
beer on the authorized site.
17. Non -Discrimination. District shall not discriminate against any person in
employment or public accommodation because of race, religion, color, creed,
gender identity, sex, national origin, sexual orientation, mental or physical
disability, marital status or age. "Employment' shall include but not be limited
to hiring, accepting, registering, classifying, promoting, or referring to
employment. "Public accommodation" shall include but not be limited to
providing goods, services, facilities, privileges and advantages to the public.
18. Termination. The City may terminate this agreement upon written notice for
violation of any provision of this agreement.
19. Assignment and Subletting. District 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
15th
day of May, 2018.
IOWA CITY AND IOWA CITY DOWNTOWN SELF -SUPPORTED
MUNICIPAL IMPROVEMENT DISTRICT
By: Nancy Bird, Executive Urector
THE CITY OF IOWA CITY
Geoff Fruin, Cljty Manager
Approved.
9 .1
City Attorney's Office
L --
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fi8fi9-lE] 008 fiUDN3d
The event area will be within the black ,
line. Open container and the liquor
license will cover this area.
There will be 5 locations for portable
toilets with 17 in total, including ADA
accessible locations. In addition, all of
the restaurants and bars will allow
their restrooms to be used.
Iowa Ave: Only the North Parking
spots will be closed to vehicle traffic
Clinton St: Only the two East lanes
and East parking will be closed,
leaving the 2 West lanes and West
parking open to vehicle traffic
N
WE
S
m St
%1y Maps
81 a.
61e 7oi
St
EXHIBIT B
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.
I 1 CITY OF IOWA CITY
COUNCIL ACTION REP 4di
"
May 15, 2018
Resolution approving an agreement with the Downtown District
to allow the sale, consumption, and possession of beer and wine
during the Downtown Block Party on City streets
Prepared By: Susan Dulek, Ass't. City Attorney
Reviewed By: Simon Andrew, Ass't. to City Manager
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Agreement
Executive Summary:
Section 4-5-3 of the City Code allows for the sale and consumption of alcohol in a city park, on
a right-of-way, or other public ground, excluding public buildings, pursuant to written
agreement.
As it did last year, the Iowa City Downtown District has planned a Block Party encompassing
the central part of the City including the ped mall on Sat., June 23, from 5 pm to 11 pm. The
agreement attached to the resolution authorizes the sale and possession of alcohol on City
streets and the ped mall in the area shown on the exhibit to the agreement.
Background / Analysis:
The agreement allows the Downtown District to sell beer and wine in a fenced off area
bounded on the north by the parking spaces on southern side of Iowa Ave., on the east by the
building face on the eastern side of Linn St., on the south by the building face on the northern
side of the ped mall, and on the west by the middle of Clinton St. on June 24 from 5:00 pm to
11:00 pm. The exact location for the Block Party is attached as an exhibit to the proposed
agreement. A person over the age of 21 will be able to purchase an empty cup from the
District, go inside a licensed premises, purchase a glass of beer or wine that will be poured
into the cup, and leave that licensed premises with a cup of beer or wine. The District itself
will be selling beer and wine as well.
Under the agreement, the District will reimburse the City for the cost of ten uniformed officers
who will be present on the site from 5:00 to midnight.
Entertainment will be provided including local musicians and children's activities.
yC4(9)
Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
Resolution No. 18-142
Resolution approving an agreement with Riverside Theatre to allow
the sale of wine and beer under limited circumstances in City Park.
Whereas, section 4-5-31D of the City Code allows private entities to sell, consume, and possess
alcohol in a city park, on public right-of-way or on a city ground excluding public buildings under
limited circumstances;
Whereas, Riverside Theatre would like to be able to sell beer and wine during performances
from June 15 through June 24 in a demarcated area in an around Riverside Festival Stage in
City Park; and
Whereas, it is in the City of Iowa City's interest to execute the attached agreement.
Now, therefore, be in resolved by the City Council of the City of Iowa City, Iowa that
The City Manager is authorized to sign the attached agreement and any needed amendments
Passed and approved this 15th day of May 2018.
M or
A ro db
V 7`Attest S F �( 8
ity Clerk City Attorney's Office
Resolution No. 18-142
Page 2
It was moved by Botchway and seconded by Taylor the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Botchway
x
Cole
%
Mims
%
Salih
%
Taylor
%
Thomas
%
Throgmorton
Drafted by. Susan Dulek, Asst City Attorney, 410 E. Washington St, Iowa City, IA 52240;319/356-5030
AGREEMENT
BETWEEN THE CITY OF IOWA CITY AND RIVERSIDE THEATRE
TO ALLOW THE TEMPORARY AND LIMITED SALE, CONSUMPTION, AND
POSSESSION OF BEER AND WINE IN CITY PARK
This Agreement is made between Riverside Theatre (hereinafter "Riverside") and
the City of Iowa City, a municipal corporation (hereinafter "City'), in Iowa City, Iowa.
WHEREAS, Riverside is an "authorized entity' as that term is defined in Iowa City
City Ordinance No. 04-4123, codified at section 4-5-3D of the City Code;
WHEREAS, Riverside has applied for a license to sell beer and wine for 213 N.
Gilbert Street, Iowa City, Iowa and intends to apply to transfer said license to an area in
City Park in and around the Riverside Theatre Festival Stage; and
WHEREAS, the parties wish to enter into an agreement to allow Riverside to sell
beer and wine and to allow persons to possess and consume beer and wine under limited
circumstances in City Park.
THE PARTIES THEREFORE AGREE AS FOLLOWS:
1. Authorized Site. In consideration for Riverside's promises herein, the City
agrees to allow Riverside control over an area south and east of the festival
stage and the seating area as shown on the diagram, which is attached,
marked Exhibit A, and incorporated herein ("authorized site").
2. Term. This agreement shall commence on June 15, 2018 and shall expire on
June 24, 2018.
3. Access. Riverside shall take all reasonable steps to ensure that every person on
the authorized site has a ticket or invitation to that days event or is an employee
of, an independent contractor of, or volunteer for Riverside and shall exclude any
person who is not.
4. License. This agreement is void if Riverside does not have a license to sell beer
orwine on the authorized site at any time during the period of June 15, 2018
through June 24, 2018.
5. Sale of Beer/Wine. Riverside shall only sell beer or wine to a person who is over
twenty-one (21) years of age and who has a ticket or invitation to that days
event or is an employee of, an independent contractor of, or a volunteer for
Riverside.
6. Advertisement. Riverside shall not, nor shall it allow anyone to, erect or place
any sign or other matter advertising any brand of alcoholic liquor, beer, or wine
upon the authorized site. Notwithstanding any other provision, sponsorship
signage unrelated to businesses selling alcohol, beer, wine, or tobacco will be
allowed.
7. Inspection. City staff, including the Iowa City Police Department, may
periodically inspect the authorized site without any prior notice to determine
compliance with the terms of this agreement. ,
8. Debris and Trash. Riverside shall be solely responsible for collecting all debris
and trash from the authorized site, and the City shall then remove the debris and
trash. If Riverside fails to do so and if City staff has to collect the debris and
trash from the authorized site, Riverside maybe responsible for the cost incurred
by the City, including staff time, and shall pay the costs in full within thirty (30)
days of receiving an invoice.
9. Insurance.
a) Premises Insurance. From June 15, 2018 through June 24, 2018,
Riverside shall carry comprehensive general liability insurance for bodily
injury and property damage on the authorized site in the amount of
$1,000,000 (one million dollars) for each occurrence and $2,000,000 (two
million dollars) in the aggregate, shall name the City as an additional
insured, and shall include the Governmental Immunities Endorsement, a
copy of which is attached, marked Exhibit B, and incorporated herein.
Riverside shall furnish a copy of a certificate of insurance for same,
satisfactory to the City at the time of execution of this agreement.
Riverside shall provide thirty (30) days notice to the City before
cancellation of said insurance, and said cancellation shall automatically
terminate this Agreement.
b) Dram Shop Insurance. From June 15, 2018 through June 24, 2018,
Riverside shall carry "dram shop" insurance in compliance with Iowa
Code section 123.92 (2017) in the amount of $500,000 (five hundred
thousand dollars). Riverside shall provide thirty (30) days notice to the
City before cancellation of said insurance, and said cancellation shall
automatically terminate this Agreement.
10. Indemnification. Riverside shall pay on behalf of the City all sums which the
City shall be obligated to pay by reason of any liability imposed upon the City
for damages of any kind resulting from the use of the authorized sight or sale,
consumption, or possession of beer or wine on the authorized site, whether
sustained by any person or person, caused by accident or otherwise and shall
defend at its own expense and on behalf of the City any claim against the City
arising out of the use of the authorized site or sale, consumption, or possession
of beer or wine on the authorized site.
11. No Smoking. Smoking, including the use of electronic cigarettes, is prohibited
in the authorized sites, and Riverside shall post a no -smoking a sign at the
front entrance to the authorized site and two signs inside the authorized site.
The signs shall comply with Iowa Code Section 142D.6 (2017). Electronic
cigarette means vapor product as defined in Section 453A.1 of the Code of
Iowa (2017).
12. Non -Discrimination. Riverside shall not discriminate against any person in
employment or public accommodation because of race, religion, color, creed,
gender identity, sex, national origin, sexual orientation, mental or physical
disability, marital status or age. "Employment' shall include but not be limited to
hiring, accepting, registering, classifying, promoting, or referring to employment.
"Public accommodation" shall include but not be limited to providing goods,
services, facilities, privileges and advantages to the public.
13. Termination. The City may terminate this agreement upon written notice for
violation of any provision of this agreement.
2
14. Assignment and Subletting. Riverside shall not assignor sublet this
agreement without prior written approval of the City.
15. Entire Agreement. This constitutes the whole agreement between the
parties, and maybe modified in writing only, duly signed by the parties.
Date, this 15th day of May, 2018.
RIVERSIDE THEATRE
By. Irena Saric
THE C ITY OF IOWA C ITY
BrGe ruin, City Manager
Approved
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City Attorneys Office
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EXHIBIT B
City of Iowa City, Iowa
Governmental Immunities Endorsement
1. Non -waiver of Government Immunitv. 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 i ns ura nce po licy.
3. Assertion of Government Immunity. The City of Iowa City, Iowa, shall be
responsible for asserting anydefense 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 carriershall not denycoverage 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.
'r 1 CITY OF IOWA CI
05-15-18
-r� COUNCIL ACTION REP 4d(9)
May 15, 2018
Resolution approving an agreement with Riverside Theatre to
allow the sale, consumption, and possession of wine and beer in
City Park
Prepared By: Sue Dulek, Assistant City Attorney
Reviewed By: Simon Andrew, Ass't. to City Manager
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Agreement
Executive Summary:
Section 4-5-3 of the City Code allows for the sale and consumption of alcohol in a city park, on a
right-of-way, or other public ground, excluding public buildings, pursuant to written agreement.
Background /Analysis:
Section 4-5-3 of the City Code allows for the sale and consumption of alcohol in a city park and
on a right-of-way pursuant to written agreement. Staff has approved the agreement, which is
attached to the resolution, that allows Riverside Theatre to sell beer and wine and for attendees
to consume beer and wine from June 15 through June 24 in a specified area in and around
Riverside Festival Stage in City Park. The terms in the agreement are the same as in 2017.
4/ PD)
Prepared by: Eleanor Dilkes, City Attorney, 410 E. Washington Street, Iowa City, IA 52240 319/356-5030
RESOLUTION NO. 18-143
Resolution repealing Resolution No. 13-81 of the City
Council of the City of Iowa City and approving a new
resolution setting the order of business for formal council
meetings.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
Said Council does hereby repeal Resolution No. 13-81 and, in its place,
establishes the rules for Order of Business and the content of the Consent
Calendar at formal meetings as follows:
A. Order of Business
The business of the City Council shall be taken up for consideration in substantially
the following order, except as otherwise determined by the City Manager, Mayor
or City Council for good reason:
1. Roll Call
2. Mayor's Proclamations
3. Consent Calendar
4. Community Comment (until 8:00 p.m.)
5. Planning and Zoning Matters: hearings, recommendations, ordinances and
resolutions, with the exception of setting public hearings which shall be on
the Consent Calendar
6. Other Public Hearings
7. Other Ordinances
8. Other Resolutions
9. Community Comment (continued if necessary)
10. City Council Information
11. City Manager, City Attorney, and City Clerk Reports
12. Adjournment
B. Content of Consent Calendar
Those items on the Agenda which are considered routine will be listed under the
Consent Calendar and be enacted by one motion, with a roll call vote. If the Mayor,
a Council member or a citizen specifically requests that any of the items be
considered separately, these items will be removed and considered later on the
Agenda.
Passed and approved this 15th day ofMa 2018
AYOR `/
ATTEST: 6 -P
C TY CLERK A r!g c d by-)
City Attorney's Office
Resolution No.
Page 2
18-143
It was moved by Botchway and seconded by Taylor the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Botchway
Cole
x Mims
x Salih
x Taylor
T— Thomas
x Throgmorton
CITY OF IOWA CI 05-15-18
COUNCIL ACTION REP 4d(10)
May 15, 2018
Resolution repealing Resolution No. 13-81 of the City Council of the
City of Iowa City and approving a new resolution setting the order of
business for formal council meetings.
Prepared By: Eleanor M. Dilkes, City Attorney
Reviewed By: Simon Andrew, Acting City Manager
Kellie Fruehling, City Clerk
Fiscal Impact: none
Recommendations: Staff: Approval
Commission: not applicable
Attachments: Resolution
Executive Summary:
The order of business for formal City Council meetings is set by resolution. The proposed
resolution does not change the general order of business but will provide flexibility to the City
Manager or Mayor to change the order for good reason when the agenda is being prepared.
For example, resolutions generally follow all ordinances but there are circumstances when it is
appropriate to place a resolution with an ordinance (e.g. ordinance vacating right-of-way should
be followed by resolution authorizing conveyance of the right-of-way).
LI(j(il)
+A 0Z,)
May 15, 2018
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
7:00 P .M., on the above date. There were present Mayor Throgmorton in the
chair, and the following named Council Members:
Botchway, Cole, Mims, Salih, Taylor, Thomas, Throgmorton
Absent: None
Vacant: None
-I-
qd(I;
Council Member Botchway introduced the following resolution entitled
"RESOLUTION APPOINTING U.S. BANK 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 Taylor seconded
the motion to adopt. The roll was called and the vote was,
AYES: Botchway, Cole, Mims, Salih
Taylor, Thomas, Throgmorton
NAYS: None
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution No 18-144
RESOLUTION APPOINTING U.S. BANK 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, $8,895,000 General Obligation Bonds, Series 2018A, dated June 1, 2018,
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 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 National
Association.
-2-
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, STATE OF IOWA:
1. That U.S. Bank 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
$8,895,000 General Obligation Bonds, Series 2018A, dated June 1, 2018.
2. That the Agreement with U.S. Bank 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.
PASSED AND APPROVED this 15th day of May, 2018.
ATTEST:
�
City Clerk
4'�'�
M or
1910
)Id(
Council Member Botchway introduced the following Resolution entitled
"RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF $8,895,000
GENERAL OBLIGATION BONDS, SERIES 2018A, 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
Taylor seconded the motion to adopt, and the roll being called thereon, the
vote was as follows:
AYES: Botchway, Cole, Mims, Salih
Taylor, Thomas, Throgmorton
NAYS: None
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution No 18-145
RESOLUTION AUTHORIZING AND PROVIDING FOR THE
ISSUANCE OF $8,895,000 GENERAL OBLIGATION BONDS,
SERIES 2018A, 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:
a) acquisition, construction, reconstruction, and improvement of real and
personal property, useful for the protection of property in the City from the effects
of flood waters, including construction and improvement of embankments and the
development and beautification of the banks and other areas adjacent to flood
control improvements;
b) opening, widening, extending, grading, and draining of the right-of-way of
streets, highways, avenues, alleys and public grounds, and market places, and the
removal and replacement of dead or diseased trees thereon; the construction,
reconstruction, and repairing of any street improvements, bridges, grade crossing
separations and approaches; the acquisition, installation, and repair of sidewalks,
culverts, retaining walls, storm sewers, sanitary sewers, water service lines, street
lighting, and traffic control devices; and the acquisition of any real estate needed
for any of the foregoing purposes; and
c) rehabilitation and improvement of parks already owned, including the
removal, replacement and planting of trees in the parks, and facilities, equipment,
and improvements commonly found in city parks,
essential corporate purposes, and it is deemed necessary and advisable that General Obligation
Bonds, to the amount of not to exceed $10,750,000 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 purposes; and
WHEREAS, the City is in need of funds to pay costs of acquisition, construction,
reconstruction, enlargement, improvement, and equipping of city halls, recreation grounds,
recreation buildings, juvenile playgrounds, recreation centers, and parks, and the acquisition of
any real estate necessary therefor, general corporate purposes, and it is deemed necessary and
advisable that General Obligation Bonds, to the amount of not to exceed $545,000 be authorized
for said purposes; and
WHEREAS, the Issuer has a population of more than 5,000 but not more than 75,000,
and the Bonds for these purposes do not exceed $700,000; and
WHEREAS, pursuant to notice published as required by Section 384.26 of the Code of
Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purposes 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 purposes; and
WHEREAS, the City is in need of funds to pay costs of acquisition, construction,
reconstruction, enlargement, improvement, and equipping of portions of the new public works
facility, for general corporate purposes, and it is deemed necessary and advisable that General
Obligation Bonds, to the amount of not to exceed $700,000 be authorized for said purposes; and
WHEREAS, the Issuer has a population of more than 5,000 but not more than 75,000,
and the Bonds for these purposes do not exceed $700,000; and
WHEREAS, pursuant to notice published as required by Section 384.26 of the Code of
Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purposes 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 purposes; 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 $8,895,000 General Obligation
Bonds as hereinafter set forth; and
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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 $8,895,000 General Obligation Bonds, Series 2018A,
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
re 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 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:
a) acquisition, construction, reconstruction, and improvement of real and
personal property, useful for the protection of property in the City from the effects
of flood waters, including construction and improvement of embankments and the
development and beautification of the banks and other areas adjacent to flood
control improvements;
b) opening, widening, extending, grading, and draining of the right-of-way of
streets, highways, avenues, alleys and public grounds, and market places, and the
removal and replacement of dead or diseased trees thereon; the construction,
reconstruction, and repairing of any street improvements, bridges, grade crossing
separations and approaches; the acquisition, installation, and repair of sidewalks,
culverts, retaining walls, storm sewers, sanitary sewers, water service lines, street
lighting, and traffic control devices; and the acquisition of any real estate needed
for any of the foregoing purposes;
c) rehabilitation and improvement of parks already owned, including the
removal, replacement and planting of trees in the parks, and facilities, equipment,
and improvements commonly found in city parks;
d) acquisition, construction, reconstruction, enlargement, improvement, and
equipping of city halls, recreation grounds, recreation buildings, juvenile
playgrounds, recreation centers, and parks, and the acquisition of any real estate
necessary therefor; and
e) acquisition, construction, reconstruction, enlargement, improvement, and
equipping of portions of the new public works facility, for general corporate
purposes.
• "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 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.
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"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 Finance Director
and delivered at the time of issuance and delivery of the Bonds.
• "Treasurer" shall mean the Finance Director or such other officer as shall
succeed to the same duties and responsibilities with respect to the recording and payment
of the Bonds issued hereunder.
Section 2. Levy and Certification of Annual Tax; Other Funds to be Used.
a) Levy of Annual Tax. That for the purpose of providing funds to pay the
principal and interest of the Bonds hereinafter authorized to be issued, there is hereby
levied for each future year the following direct annual tax on all of the taxable property in
the City of Iowa City, State of Iowa, to -wit:
FISCAL YEAR (JULY 1 TO JUNE 30)
AMOUNT YEAR OF COLLECTION
$1,076,850.00(cash on hand)
2018/2019
$1,067,550.00
2019/2020
$1,057,800.00
2020/2021
$1,047,600.00
2021/2022
$1,041,950.00
2022/2023
$1,035,700.00
2023/2024
$1,028,850.00
2024/2025
$1,026,400.00
2025/2026
$1,018,200.00
2026/2027
$1,009,400.00
2027/2028
(NOTE: For example the levy to be made and certified against the taxable valuations of
January 1, 2019 will be collected during the fiscal year commencing July 1, 2020.)
b) Resolution to be Filed With County Auditor. A certified copy of this
Resolution shall be filed with the Auditor of Johnson County, Iowa and the Auditor is
hereby instructed in and for each of the years as provided, to levy and assess the tax
hereby authorized in Section 2 of this Resolution, in like manner as other taxes are levied
and assessed, and such taxes so levied in and for each of the years aforesaid be collected
in like manner as other taxes of the City are collected, and when collected be used for the
purpose of paying principal and interest on said Bonds issued in anticipation of the tax,
and for no other purpose whatsoever.
c) Additional City Funds Available. Principal and interest coming due at any
time when the proceeds of said tax on hand shall be insufficient to pay the same shall be
promptly paid when due from current funds of the City available for that purpose and
reimbursement shall be made from such special fund in the amounts thus advanced.
Section 3. Bond Fund. Said tax shall be assessed and collected each year at the same
time and in the same manner as, and in addition to, all other taxes in and for the City, and when
collected they shall be converted into a special fund within the Debt Service Fund to be known
as the "GENERAL OBLIGATION BOND FUND NO. I" (the "Bond Fund"), which is hereby
pledged for and shall be used only for the payment of the principal of and interest on the Bonds
hereinafter authorized to be issued; and also there shall be apportioned to said fund its proportion
of taxes received by the City from property that is centrally assessed by the State of Iowa.
Section 4. Application of Bond Proceeds. Proceeds of the Bonds, other than accrued
interest except as may be provided below, shall be credited to the Project Fund and expended
therefrom for the purposes of issuance. Any amounts on hand in the Project Fund shall be
available for the payment of the principal of or interest on the Bonds at any time that other funds
shall be insufficient to the purpose, in which event such funds shall be repaid to the Project Fund
at the earliest opportunity. Any balance on hand in the Project Fund and not immediately
required for its purposes may be invested not inconsistent with limitations provided by law or
this Resolution.
Section 5. Investment of Bond Fund Proceeds. All moneys held in the Bond Fund,
provided for by Section 3 of this Resolution shall be invested in investments permitted by
Chapter 12B, Code of Iowa, 2017, 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, 2017, as amended, or otherwise by a valid
pledge of direct obligations of the United States Government having an equivalent market value.
All such interim investments shall mature before the date on which the moneys are required for
payment of principal of or interest on the Bonds as herein provided.
Section 6. Bond Details, Execution and Redemption.
a) Bond Details. General Obligation Bonds of the City in the amount of
$8,895,000, 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 2018A", be dated June 1, 2018, and bear
interest from the date thereof, until payment thereof, at the office of the Paying Agent,
said interest payable on December 1, 2018, and semiannually thereafter on the 1st day of
June and December in each year until maturity at the rates hereinafter provided.
The Bonds shall be executed by the manual or facsimile signature of the Mayor
and attested by the manual or facsimile signature of the Clerk, and impressed or printed
with the seal of the City and shall be fully registered as to both principal and interest as
provided in this Resolution; principal, interest and premium, if any, shall be payable at
the office of the Paying Agent by mailing of a check to the registered owner of the Bond.
SZ
The Bonds shall be in the denomination of $5,000 or multiples thereof. The Bonds shall
mature and bear interest as follows:
Principal
Amount
Interest Maturity
Rate June 1st
$810,000
3.000%
2019
$825,000
3.000%
2020
$840,000
3.000%
2021
$855,000
3.000%
2022
$875,000
3.000%
2023
$895,000
3.000%
2024
$915,000
3.000%
2025
$940,000
3.000%
2026
$960,000
3.000%
2027
$980,000
3.000%
2028
b) Redemption.
i. Optional Redemption. Bonds maturing after June 1, 2024, 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.
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Section 7. Issuance of Bonds in Book -Entry Form, Replacement Bonds.
a) Notwithstanding the other provisions of this Resolution regarding registration,
ownership, transfer, payment and exchange of the Bonds, unless the Issuer determines to
permit the exchange of Depository Bonds for Bonds in Authorized Denominations, the
Bonds shall be issued as Depository Bonds in denominations of the entire principal
amount of each maturity of Bonds (or, if a portion of said principal amount is prepaid,
said principal amount less the prepaid amount). The Bonds must be registered in the
name of Cede & Co., as nominee for DTC. Payment of semiannual interest for any
Bonds registered in the name of Cede & Co. will be made by wire transfer or New York
Clearing House or equivalent next day funds to the account of Cede & Co. on the interest
payment date for the Bonds at the address indicated or in the Representation Letter.
b) The Bonds will be initially issued in the form of separate single authenticated
fully registered bonds in the amount of each stated maturity of the Bonds. Upon initial
issuance, the ownership of the Bonds will be registered in the registry books of the U.S.
Bank National Association kept by the Paying Agent and Registrar in the name of Cede
& Co., as nominee of DTC. The Paying Agent and Registrar and the Issuer may treat
DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name
for the purposes of payment of the principal or redemption price of or interest on the
Bonds, selecting the Bonds or portions to be redeemed, giving any notice permitted or
required to be given to registered owners of Bonds under the Resolution of the Issuer,
registering the transfer of Bonds, obtaining any consent or other action to be taken by
registered owners of the Bonds and for other purposes. The Paying Agent, Registrar and
the Issuer have no responsibility or obligation to any Participant or Beneficial Owner of
the Bonds under or through DTC with respect to the accuracy of records maintained by
DTC or any Participant; with respect to the payment by DTC or Participant of an amount
of principal or redemption price of or interest on the Bonds; with respect to any notice
given to owners of Bonds under the Resolution; with respect to the Participant(s) selected
to receive payment in the event of a partial redemption of the Bonds, or a consent given
or other action taken by DTC as registered owner of the Bonds. The Paying Agent and
Registrar shall pay all principal of and premium, if any, and interest on the Bonds only to
Cede & Co. in accordance with the Representation Letter, and all payments are valid and
effective to fully satisfy and discharge the Issuer's obligations with respect to the
principal of and premium, if any, and interest on the Bonds to the extent of the sum paid.
DTC must receive an authenticated Bond for each separate stated maturity evidencing the
obligation of the Issuer to make payments of principal of and premium, if any, and
interest. Upon delivery by DTC to the Paying Agent and Registrar of written notice that
DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will
be transferable to the new nominee in accordance with this Section.
c) In the event the Issuer determines that it is in the best interest of the Beneficial
Owners that they be able to obtain Bonds certificates, the Issuer may notify DTC and the
Paying Agent and Registrar, whereupon DTC will notify the Participants, of the
availability through DTC of Bonds certificates. The Bonds will be transferable in
accordance with this Section. DTC may determine to discontinue providing its services
with respect to the Bonds at any time by giving notice to the Issuer and the Paying Agent
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and Registrar and discharging its responsibilities under applicable law. In this event, the
Bonds will be transferable in accordance with this Section.
d) Notwithstanding any other provision of the Resolution to the contrary, so long
as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments
with respect to the principal of and premium, if any, and interest on the Bond and all
notices must be made and given, respectively to DTC as provided in the Representation
letter.
e) In connection with any notice or other communication to be provided to
Bondholders by the Issuer or the Paying Agent and Registrar with respect to a consent or
other action to be taken by Bondholders, the Issuer or the Paying Agent and Registrar, as
the case may be, shall establish a record date for the consent or other action and give
DTC notice of the record date not less than 15 calendar days in advance of the record
date to the extent possible. Notice to DTC must be given only when DTC is the sole
Bondholder.
f) The Representation Letter is on file with DTC and sets forth certain matters
with respect to, among other things, notices, consents and approvals by Bondholders and
payments on the Bonds. The execution and delivery of the Representation Letter to DTC
by the Issuer is ratified and confirmed.
g) In the event that a transfer or exchange of the Bonds is permitted under this
Section, the transfer or exchange may be accomplished upon receipt by the Registrar
from the registered owners of the Bonds to be transferred or exchanged and appropriate
instruments of transfer. In the event Bond certificates are issued to holders other than
Cede & Co., its successor as nominee for DTC as holder of all the Bonds, or other
securities depository as holder of all the Bonds, the provisions of the Resolution apply to,
among other things, the printing of certificates and the method or payment of principal of
and interest on the certificates. Any substitute depository shall be designated in writing
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.
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Section 8. Registration of Bonds; Appointment of Registrar; Transfer; Ownership
Delivery; and Cancellation.
a) Registration. The ownership of Bonds may be transferred only by the making
of an entry upon the books kept for the registration and transfer of ownership of the
Bonds, and in no other way. U.S. Bank National Association is hereby appointed as Bond
Registrar under the terms of this Resolution and under the provisions of a separate
agreement with the Issuer filed herewith which is made a part hereof by this reference.
Registrar shall maintain the books of the Issuer for the registration of ownership of the
Bonds for the payment of principal of and interest on the Bonds as provided in this
Resolution. All Bonds shall be negotiable as provided in Article 8 of the Uniform
Commercial Code and Section 384.31 of the Code of Iowa, subject to the provisions for
registration and transfer contained in the Bonds and in this Resolution.
b) Transfer. The ownership of any Bond may be transferred only upon the
Registration Books kept for the registration and transfer of Bonds and only upon
surrender thereof at the office of the Registrar together with an assignment duly executed
by the holder or his duly authorized attorney in fact in such form as shall be satisfactory
to the Registrar, along with the address and social security number or federal employer
identification number of such transferee (or, if registration is to be made in the name of
multiple individuals, of all such transferees). In the event that the address of the
registered owner of a Bond (other than a registered owner which is the nominee of the
broker or dealer in question) is that of a broker or dealer, there must be disclosed on the
Registration Books the information pertaining to the registered owner required above.
Upon the transfer of any such Bond, a new fully registered Bond, of any denomination or
denominations permitted by this Resolution in aggregate principal amount equal to the
unmatured and unredeemed principal amount of such transferred fully registered Bond,
and bearing interest at the same rate and maturing on the same date or dates shall be
delivered by the Registrar.
c) Registration of Transferred Bonds. In all cases of the transfer of the Bonds, the
Registrar shall register, at the earliest practicable time, on the Registration Books, the
Bonds, in accordance with the provisions of this Resolution.
d) Ownership. As to any Bond, the person in whose name the ownership of the
same shall be registered on the Registration Books of the Registrar shall be deemed and
regarded as the absolute owner thereof for all purposes, and payment of or on account of
the principal of any such Bonds and the premium, if any, and interest thereon shall be
made only to or upon the order of the registered owner thereof or his legal representative.
All such payments shall be valid and effectual to satisfy and discharge the liability upon
such Bond, including the interest thereon, to the extent of the sum or sums so paid.
e) Cancellation. All Bonds which have been redeemed shall not be reissued but
shall be cancelled by the Registrar. All Bonds which are cancelled by the Registrar shall
be destroyed and a certificate of the destruction thereof shall be furnished promptly to the
Issuer; provided that if the Issuer shall so direct, the Registrar shall forward the cancelled
Bonds to the Issuer.
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f) Non -Presentment of Bonds. In the event any payment check representing
payment of principal of or interest on the Bonds is returned to the Paying Agent or if any
bond is not presented for payment of principal at the maturity or redemption date, if funds
sufficient to pay such principal of or interest on Bonds shall have been made available to
the Paying Agent for the benefit of the owner thereof, all liability of the Issuer to the
owner thereof for such interest or payment of such Bonds shall forthwith cease, terminate
and be completely discharged, and thereupon it shall be the duty of the Paying Agent to
hold such funds, without liability for interest thereon, for the benefit of the owner of such
Bonds who shall thereafter be restricted exclusively to such funds for any claim of
whatever nature on his part under this Resolution or on, or with respect to, such interest
or Bonds. The Paying Agent's obligation to hold such funds shall continue for a period
equal to two years and six months following the date on which such interest or principal
became due, whether at maturity, or at the date fixed for redemption thereof, or
otherwise, at which time the Paying Agent, shall surrender any remaining funds so held
to the Issuer, whereupon any claim under this Resolution by the Owners of such interest
or Bonds of whatever nature shall be made upon the Issuer.
g) Registration and Transfer Fees. The Registrar may furnish to each owner, at
the Issuer's expense, one bond for each annual maturity. The Registrar shall furnish
additional Bonds in lesser denominations (but not less than the minimum denomination)
to an owner who so requests.
Section 9. Reissuance of Mutilated, Destroyed, Stolen or Lost Bonds. In case any
outstanding Bond shall become mutilated or be destroyed, stolen or lost, the Issuer shall at the
request of Registrar authenticate and deliver a new Bond of like tenor and amount as the Bond so
mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond to
Registrar, upon surrender of such mutilated Bond, or in lieu of and substitution for the Bond
destroyed, stolen or lost, upon filing with the Registrar evidence satisfactory to the Registrar and
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
-14-
conclusive evidence that the Bond so authenticated has been duly issued under this Resolution
and that the holder thereof is entitled to the benefits of this Resolution.
No Bonds shall be authenticated and delivered by the Registrar unless and until there
shall have been provided the following:
A certified copy of the Resolution of Issuer authorizing the issuance of the Bonds;
2. A written order of Issuer signed by the Finance Director 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 Paving Agent or Reig straz. Issuer reserves the right
to name a substitute, successor Registrar or Paying Agent upon giving prompt written notice to
each registered bondholder.
Section 13. Form of Bond. Bonds shall be printed substantially in the form as follows:
"STATE OF IOWA"
"COUNTY OF JOHNSON"
"CITY OF IOWA CITY"
"GENERAL OBLIGATION BOND"
"SERIES 2018A"
CORPORATE PURPOSE
Rate:
Maturity:
Bond Date: June 1, 2018
CUSIP No.:
"Registered"
Certificate No.
Principal Amount: $
The City of Iowa City, State of Iowa, a municipal corporation organized and existing
under and by virtue of the Constitution and laws of the State of Iowa (the "Issuer"), for value
received, promises to pay from the source and as hereinafter provided, on the maturity date
indicated above, to
(Registration panel to be completed by Registrar or Printer with name of Registered
Owner).
or registered assigns, the principal sum of (enter principal amount in long form) THOUSAND
DOLLARS in lawful money of the United States of America, on the maturity date shown above,
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only upon presentation and surrender hereof at the office of U.S. Bank National Association, St..
Paul, Minnesota, Paying Agent of this issue, or its successor, with interest on the sum from the
date hereof until paid at the rate per annum specified above, payable on December 1, 2018, and
semiannually thereafter on the 1 st day of June and December in each year.
Interest and principal shall be paid to the registered holder of the Bond as shown on the
records of ownership maintained by the Registrar as of the 15th day of the month preceding such
interest payment date. Interest shall be computed on the basis of a 360 -day year of twelve 30 -
day months.
This Bond is issued pursuant to the provisions of Sections 384.25, 384.26 and 384.28 of
the Code of Iowa, for the purpose of paying costs of:
a) acquisition, construction, reconstruction, and improvement of real and
personal property, useful for the protection of property in the City from the effects
of flood waters, including construction and improvement of embankments and the
development and beautification of the banks and other areas adjacent to flood
control improvements;
b) opening, widening, extending, grading, and draining of the right-of-
way of streets, highways, avenues, alleys and public grounds, and market places,
and the removal and replacement of dead or diseased trees thereon; the
construction, reconstruction, and repairing of any street improvements, bridges,
grade crossing separations and approaches; the acquisition, installation, and repair
of sidewalks, culverts, retaining walls, storm sewers, sanitary sewers, water
service lines, street lighting, and traffic control devices; and the acquisition of any
real estate needed for any of the foregoing purposes;
c) rehabilitation and improvement of parks already owned, including the
removal, replacement and planting of trees in the parks, and facilities, equipment,
and improvements commonly found in city parks;
d) acquisition, construction, reconstruction, enlargement, improvement,
and equipping of city halls, recreation grounds, recreation buildings, juvenile
playgrounds, recreation centers, and parks, and the acquisition of any real estate
necessary therefor; and
e) acquisition, construction, reconstruction, enlargement, improvement,
and equipping of portions of the new public works facility,
for general corporate purposes, 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
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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, 2024, may be called for optional redemption by the Issuer
and paid before maturity on said date or any date thereafter, from any funds regardless of source,
in whole or from time to time in part, in any order of maturity and within an annual maturity by
lot. The terms of redemption shall be par, plus accrued interest to date of call.
Thirty days' written notice of redemption shall be given to the registered owner of the
Bond. Failure to give written notice to any registered owner of the Bonds or any defect therein
shall not affect the validity of any proceedings for the redemption of the Bonds. All bonds or
portions thereof called for redemption will cease to bear interest after the specified redemption
date, provided funds for their redemption are on deposit at the place of payment. Written notice
will be deemed completed upon transmission to the owner of record.
If selection by lot within a maturity is required, the Registrar shall designate the Bonds to
be redeemed by random selection of the names of the registered owners of the entire annual
maturity until the total amount of Bonds to be called has been reached.
If less than all of a maturity is called for redemption, the Issuer will notify DTC of the
particular amount of such maturity to be redeemed prior to maturity. DTC will determine by lot
the amount of each Participant's interest in such maturity to be redeemed and each Participant
will then select by lot the beneficial ownership interests in such maturity to be redeemed. All
prepayments shall be at a price of par plus accrued interest.
Ownership of this Bond may be transferred only by transfer upon the books kept for such
purpose by U.S. Bank National Association, St. Paul, Minnesota, the Registrar. Such transfer on
the books shall occur only upon presentation and surrender of this Bond at the office of the
Registrar as designated below, together with an assignment duly executed by the owner hereof or
his duly authorized attorney in the form as shall be satisfactory to the Registrar. Issuer reserves
the right to substitute the Registrar and Paying Agent but shall, however, promptly give notice to
registered Bondholders of such change. All bonds shall be negotiable as provided in Article 8 of
the Uniform Commercial Code and Section 384.31 of the Code of Iowa, subject to the provisions
for registration and transfer contained in the Bond Resolution.
This Bond is a "qualified tax-exempt obligation" designated by the City for purposes of
Section 265(b)(3)(B) of the Internal Revenue Code of 1986.
And it is hereby represented and certified that all acts, conditions and things requisite,
according to the laws and Constitution of the State of Iowa, to exist, to be had, to be done, or to
be performed precedent to the lawful issue of this Bond, have been existent, had, done and
performed as required by law; that provision has been made for the levy of a sufficient
continuing annual tax on all the taxable property within the territory of the Issuer for the payment
-17-
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
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 National Association.
U.S. BANK NATIONAL ASSOCIATION, Registrar
St. Paul, Minnesota
Authorized Signature
Registrar and Transfer Agent:U.S. Bank National Association
Paying Agent: U.S. Bank National Association
SEE REVERSE FOR CERTAIN DEFINITIONS
(Seal)
(Signature Block)
CITY OF IOWA CITY, STATE OF IOWA
By: manual or facsimile signature)
Mayor
ATTEST:
By: (manual or facsimile signature)
City Clerk
(Information Required for Registration)
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
(Social Security or Tax Identification No. ) the
within Bond and does hereby irrevocably constitute and appoint
attorney in fact to transfer the said Bond on the books kept for registration of the within Bond,
with full power of substitution in the premises.
Dated:
(Person(s) executing this Assignment sign(s) here)
SIGNATURE)
GUARANTEED)
IMPORTANT - READ CAREFULLY
The signature(s) to this Power must correspond with the name(s) as written upon the face
of the certificate(s) or bond(s) in every particular without alteration or enlargement or any
change whatever. Signature guarantee must be provided in accordance with the
prevailing standards and procedures of the Registrar and Transfer Agent. Such standards
and procedures may require signature to be guaranteed by certain eligible guarantor
institutions that participate in a recognized signature guarantee program.
INFORMATION REQUIRED FOR REGISTRATION OF TRANSFER
Name of Transferee(s)
Address of Transferee(s)
Social Security or Tax Identification
Number of Transferee(s)
Transferee is a(n):
Individual*
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
CD2!
IA UNIF TRANS MIN ACT - .......... Custodian ..........
(Cust) (Minor)
Under Iowa Uniform Transfers to Minors Act ...................
(State)
ADDITIONAL ABBREVIATIONS MAY
ALSO BE USED THOUGH NOT IN THE ABOVE LIST
(End of form of Bond)
Section 14. Closing Documents. The Mayor and City Clerk are authorized and directed
to execute, attest, seal and deliver for and on behalf of the City any other additional certificates,
documents, or other papers and perform all other acts, including without limitation the execution
of all closing documents, as they may deem necessary or appropriate in order to implement and
carry out the intent and purposes of this Resolution.
Section 15. Contract Between Issuer and Purchaser. This Resolution constitutes a
contract between said City and the purchaser of the Bonds.
Section 16. Non -Arbitrage Covenants. The Issuer reasonably expects and covenants that
no use will be made of the proceeds from the issuance and sale of the Bonds issued hereunder
which will cause any of the Bonds to be classified as arbitrage bonds within the meaning of
Sections 148(a) and (b) of the Internal Revenue Code of the United States, as amended, and that
throughout the term of the Bonds it will comply with the requirements of statutes and regulations
issued thereunder.
To the best knowledge and belief of the Issuer, there are no facts or circumstances that
would materially change the foregoing statements or the conclusion that it is not expected that
the proceeds of the Bonds will be used in a manner that would cause the Bonds to be arbitrage
bonds.
Section 17. Approval of Tax Exemption Certificate. Attached hereto is a form of Tax
Exemption Certificate stating the Issuer's reasonable expectations as to the use of the proceeds of
the Bonds. The form of Tax Exemption Certificate is approved. The Issuer hereby agrees to
comply with the provisions of the Tax Exemption Certificate and the provisions of the Tax
Exemption Certificate are hereby incorporated by reference as part of this Resolution. The
Finance Director is hereby directed to make and insert all calculations and determinations
necessary to complete the Tax Exemption Certificate at issuance of the Bonds to certify as to the
reasonable expectations and covenants of the Issuer at that date.
Section 18. Continuing Disclosure. The Issuer hereby covenants and agrees that it will
comply with and carry out all of the provisions of the Continuing Disclosure Certificate, and the
provisions of the Continuing Disclosure Certificate are hereby incorporated by reference as part
of this Resolution and made a part hereof. Notwithstanding any other provision of this
Resolution, failure of the Issuer to comply with the Continuing Disclosure Certificate shall not
be considered an event of default under this Resolution; however, any holder of the Bonds or
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Beneficial Owner may take such actions as may be necessary and appropriate, including seeking
specific performance by court order, to cause the Issuer to comply with its obligations under the
Continuing Disclosure Certificate. For purposes of this section, 'Beneficial Owner" means any
person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to
dispose of ownership of, any Bond (including persons holding Bonds through nominees,
depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal
income tax purposes.
Section 19. Additional Covenants, Representations and Warranties of the Issuer. The
Issuer certifies and covenants with the purchasers and holders of the Bonds from time to time
outstanding that the Issuer through its officers, (a) will make such further specific covenants,
representations and assurances as may be necessary or advisable; (b) comply with all
representations, covenants and assurances contained in the Tax Exemption Certificate, which
Tax Exemption Certificate shall constitute a part of the contract between the Issuer and the
owners of the Bonds; (c) consult with Bond Counsel (as defined in the Tax Exemption
Certificate); (d) pay to the United States, as necessary, such sums of money representing required
rebates of excess arbitrage profits relating to the Bonds; (e) file such forms, statements and
supporting documents as may be required and in a timely manner; and (f) if deemed necessary or
advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other
persons to assist the Issuer in such compliance.
Section 20. Amendment of Resolution to Maintain Tax Exemption. This Resolution may
be amended without the consent of any owner of the Bonds if, in the opinion of Bond Counsel,
such amendment is necessary to maintain tax exemption with respect to the Bonds under
applicable Federal law or regulations.
Section 21. Qualified Tax -Exempt Obligations. For the sole purpose of qualifying the
Bonds as "Qualified Tax -Exempt Obligations" pursuant to Section 265(b)(3)(B) of the Internal
Revenue Code of the United States, the Issuer hereby designates the Bonds as qualified tax-
exempt obligations and represents that the reasonably anticipated amount of tax-exempt
governmental and qualified 501(c)(3) obligations which will be issued during the current
calendar year will not exceed Ten (10) Million Dollars.
Section 22. Repeal of Conflicting Resolutions or Ordinances. All ordinances and
resolutions and parts of ordinances and resolutions in conflict herewith are hereby repealed.
Section 23. Severability Clause. If any section, paragraph, clause or provision of this
Resolution be held invalid, such invalidity shall not affect any of the remaining provisions
hereof, and this Resolution shall become effective immediately upon its passage and approval.
-21-
PASSED AND APPROVED this 15th day of May, 2018.
ATTEST:
City Clerk
M or
I►.#M
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 15th day of
12018.
City Clerk, City of Io City, State of lowiO
(SEAL)
01476371-1\10714-130
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, Iowa, Issuer
By: G/
Print Name: James A. Throgmorton
Title: Mayor
U.S. BANK NATIONAL ASSOCIATION, as
Paying Agent, Registrar and �,Tra5lnsferAgent
By: �CI till �' - Ac", —
Authorized Representativ
Print Name: Diane L. Johnson
Title: Vice President
AGREEMENT RELATING TO PAYING AGENCY, REGISTRAR AND TRANSFER AGENCY
THIS PAYING AGENT/BOND REGISTRAR AGREEMENT (this "Agreement"), is entered into as of June
151, 2018 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 2018A (the "Bonds") in an aggregate principal amount of $8,895,000 to be issued as fully
registered bonds without coupons;
WHEREAS the Issuer will ensure all things necessary to make the Bonds the valid obligations of the Issuer, in
accordance with their terms, will be done upon the issuance and delivery thereof;
WHEREAS the Issuer and the Bank wish to provide the terms under which Bank will act as Paying Agent to
pay the principal, redemption premium (if any) and interest on the Bonds, in accordance with the terms thereof, and under
which the Bank will act as Registrar for the Bonds;
WHEREAS the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power
and authority to perform and serve as Paying Agent and Bond Registrar for the Bonds;
WHEREAS the Issuer has duly authorized the execution and delivery of this Agreement; and all things
necessary to make this Agreement a valid agreement have been done.
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
DEFINITIONS
Section 1.01. Definitions. For all purposes of this Agreement except as otherwise expressly provided or unless
the context otherwise requires:
Definition of Terms. The terms "item", "receipt", "transfer", "turnaround", "process", "business day", and other
terms used throughout the Agreement shall be deemed to have the meanings provided in Rules 17Ad-1 and 17Ad-2 of
the Regulations promulgated pursuant to the Securities Exchange Act of 1934 and Section 76.10(4) of the Code of Iowa,
as amended and in effect from time to time.
"Bank" means U.S. Bank National Association, a national banking association organized and existing under the
laws of the United States of America.
"Bond Register" means the book or books of registration kept by the Bank in which are maintained the names
and addresses and principal amounts registered to each Registered Owner.
"Fiscal Year" means the fiscal year of the Issuer ending on June 30 of each year.
"Issuer" means City of Iowa City, Iowa.
"Paying Agent" means the Bank when it is performing the function of paying agent for the Bonds.
"Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision of a government or any entity
whatsoever.
"Registered Owner" means a Person in whose name a Bond is registered in the Bond Register.
"Registrar" means the Bank when it is performing the function of registrar for the Bonds.
"Stated Maturity" when used with respect to any Bond means the date specified in the Bond as the date on which
the principal of such Bond is due and payable.
ARTICLE TWO
APPOINTMENT OF BANK AS
PAYING AGENT AND BOND REGISTRAR
Section 2.01. Appointment and Acceptance. The Issuer hereby appoints the Bank to act as Paying Agent with
respect to the Bonds, to pay to the Registered Owners in accordance with the terms and provisions of this Agreement the
principal of, redemption premium (if any), and interest on all or any of the Bonds.
The Issuer hereby appoints the Bank as Registrar with respect to the Bonds. As Registrar, the Bank shall keep
and maintain for and on behalf of the Issuer, books and records as to the ownership of the Bonds and with respect to the
transfer and exchange thereof as herein provided.
The Bank hereby accepts its appointment, and agrees to act as Paying Agent and Bond Registrar.
Section 2.02. Compensation. As compensation for the Bank's services as Paying Agent and Bond Registrar, the
Issuer hereby agrees to pay the Bank the fees and amounts set forth in. The Bank's proposal for paying agent/registrar
services dated March 12, 2015.
In addition, the Issuer agrees to reimburse the Bank, upon its request, for all reasonable and necessary out-of-
pocket expenses, disbursements, and advances, including without limitation the reasonable fees, expenses, and
disbursements made or incurred by the Bank in connection with entering into and performing under this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. Duties of Paving Agent. As Paying Agent, the Bank, provided sufficient collected funds have been
provided to it for such purpose by or on behalf of the Issuer, shall pay on behalf of the Issuer the principal of, redemption
premium, if any, and interest on each Bond in accordance with the provisions of the Bond.
Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of, redemption premium
(if any) and interest on the Bonds, to the extent such funds have herein been provided by the Issuer, as follows:
(a) The Issuer hereby agrees to provide the Paying Agent with sufficient funds to make principal
and interest payments as follows: (1) payment by check must be received by the Paying Agent at
least 5 business days prior to payment date and (2) payment by wire must be received by the Paying
Agent by the payment date and no later than 11:30 a.m. CST.
(b) On each payment date Agent will pay interest and, upon presentation and surrender of the
matured or called Obligations, will pay principal to each registered owner of the Obligations as of
the record date by mailing a check to each such owner. In any case where the date of maturity of
interest on or principal of the Obligations or the date fixed for redemption of any Obligations shall
be a Sunday or a legal holiday or a day on which the banking institutions are authorized by law to
close, then payment of interest or principal may be made on the succeeding business day with the
same force and effect as if made on the date of maturity or the date fixed for redemption. Provided,
however, that payment of principal shall be made not later than the second day after receipt of the
matured Obligation.
(c) When the Agent shall receive notice from Issuer of its option to redeem Obligations prior to
maturity, the Agent shall select the Obligations to be redeemed and give notice of the redemption
thereof, all in accordance with the terms of the Obligations and the Resolution.
The Bank shall not be required to pay interest on any funds of the Issuer for any period during which such funds
are held by the Bank awaiting the presentation of the Bonds for payment.
ARTICLE FOUR
REGISTRAR
Section 4.01. Initial Delivery of Bonds. The Bonds will be initially registered and delivered to the purchaser
designated by the Issuer as one Bond for each maturity. If such purchaser delivers a written request to the Bank not later
than five business days prior to the date of initial delivery, the Bank will, on the date of initial delivery, deliver Bonds of
authorized denominations, registered in accordance with the instructions in such written request.
Section 4.02. Duties of Registrar. The Bank shall provide for the proper registration of transfer, exchange and
replacement of the Bonds. Every Bond surrendered for transfer or exchange shall be duly endorsed or be accompanied
by a written instrument of transfer, the signature on which as been guaranteed by an eligible guarantor institution, in form
acceptable to the Bank, duly executed by the Registered Owner thereof or his attorney duly authorized in writing. The
Registrar may request any supporting documentation it deems necessary or appropriate to affect a re -registration. Bank
shall comply at all times with such rules, regulations, and requirements as may govern the registration,
transfer and payment of registered Bonds including without limitation Chapters 76, 384, 554.8101 et seq.
Code of Iowa and standards issued from time to time by the Municipal Securities Rulemaking Board of the
United States and any other securities industry standard and the requirements of the Internal Revenue Code
of 1986.
For purposes of determining the registered owners of the Bonds, the record date shall be deemed to
be the fifteenth day of the month preceding the date on which payment of principal, premium, if any, or
interest is payable to the registered owners of the Bonds ("payment date") whether such payment is due to
optional redemption, operation of a sinking fund, or for any other reason.
Bank agrees that it will turnaround within three business days of receipt all items received in proper
form for transfer, process or other action pursuant to the terms of this Agreement.
Bank will promptly cancel and deliver to Issuer all Bonds or certificates representing the Bonds
surrendered to it upon payment of the principal, premium, if any, and interest owing on such Bonds.
In the event any payment check representing payment of interest or principal on the Bonds is
returned to the Bank or is not presented for payment, or if any Bonds is not presented for payment of
principal or premium, if any, at the maturity or redemption date, if funds sufficient to pay such interest on
Bonds shall have been made available to the Bank for the benefit of the owner thereof, all liability of the
Issuer to the owner thereof for such interest or payment of such Bonds shall forthwith cease, terminate and
be completely discharged, and thereupon it shall be the duty of the Bank to hold such funds, without liability
for interest thereon, for the benefit of the owner of such Bonds who shall thereafter be restricted exclusively
to such funds for any claim of whatever nature on his part under this Agreement or on, or with respect to,
such interest or Bonds. The Bank's obligation to hold such funds shall continue for a period equal to two
years and six months following the date on which such interest or principal became due, whether at maturity,
or at the date fixed for redemption thereof, or otherwise, at which time the Bank, shall surrender any
remaining funds so held to the Issuer, whereupon any claim under this Agreement by the Owners of such
interest or Bonds of whatever nature shall be made upon the Issuer.
Section 4.03. Unauthenticated Bonds. The Issuer shall provide to the Bank on a continuing basis, an adequate
inventory of unauthenticated Bonds to facilitate transfers. The Bank agrees that it will maintain such unauthenticated
Bonds in safekeeping.
Section 4.04. Form of Bond Register. The Bank as Registrar will maintain its records as Bond Registrar in
accordance with standards issued from time to time by the Municipal Securities Rulemaking Board of the United States
and any other securities industry standard and the requirements of the Internal Revenue Code of 1986 and Chapter 76 of
the Code of Iowa.
Section 4.05. Reports. The records of Bank shall be in such form as to be in compliance with standards
issued from time to time by the Municipal Securities Rulemaking Board of the United States and any other
securities industry standard and the requirements of the Internal Revenue Code of 1986 and Chapter 76 of
the Code of Iowa.
Bank's records in connection with the Bonds shall remain confidential records entitled to protection
and confidentiality pursuant to Section 22.7(17), Code of Iowa. Agent agrees that its use of the records will
be limited to the purposes of this Agreement and that Agent will make no private use or permit any private
access thereto. The Bank will not release or disclose the content of the Bond Register to any person other than to the
Issuer at its written request, except upon receipt of a subpoena or court order or as may otherwise be required by law.
Upon receipt of a subpoena or court order the Bank will notify the Issuer.
Section 4.06. Cancelled Bonds. All Bonds surrendered for payment, redemption, transfer, exchange, or
replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if surrendered to the Issuer, shall be
delivered to the Bank and, if not already cancelled, shall be promptly cancelled by the Bank. The Issuer may at any time
deliver to the Bank for cancellation any Bonds previously authenticated and delivered which the Issuer may have acquired
in any manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the Bank. All cancelled Bonds
held by the Bank for its retention period then in effect and shall thereafter be returned to the Issuer.
Section 4.07. Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be
destroyed, stolen or lost, the Bank shall deliver a new Bond of like amount, number, maturity date and tenor in exchange
and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond
destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Bank in connection therewith;
and, in the case of a Bond destroyed, stolen or lost, upon filing by the owner with the Bank of evidence satisfactory to
the Bank that such Bond was destroyed, stolen or lost, and of the ownership thereof, and upon famishing to the Bank of
an appropriate bond of indemnity in form, substance and amount as may be required by law and as is satisfactory to the
Bank. All Bonds so surrendered to the Bank shall be canceled by it and evidence of such cancellation shall be given to
the Issuer. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in
accordance with its terms it shall not be necessary to issue a new Bond prior to payment, provided that the owner shall
first provide the Bank with a bond of indemnity as set forth above.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of Bank. The Bank undertakes to perform the duties set forth herein. No implied duties or
obligations shall be read into this Agreement against the Bank. The Bank hereby agrees to use the funds deposited with
it for payment of the principal of and interest on the Bonds to pay the same as it shall become due and further agrees to
establish and maintain such accounts and fimds as may be required for the Bank to function as Paying Agent.
Section 5.02. Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the statements
and correctness of the opinions expressed therein, on certificates or opinions expressed therein, on certificates or opinions
furnished to the Bank by the Issuer.
(b) Bank may rely conclusively and act, without further investigation, upon any list, instruction,
certification, authorization, certificate or other instrument or paper suitably guaranteed and believed by it
in good faith and due diligence in performing its functions to be genuine and to have been signed,
countersigned or executed by any duly authorized person or persons or upon the instruction of any
authorized officer of Issuer or upon the advice of Issuer's counsel; and may register any certificate
representing the Bonds or may refuse to register any such certificate if in good faith Bank deems such
refusal necessary in order to avoid any liability on the part of either Issuer or Bank, and Issuer agrees to
indemnify and hold harmless the Bank from and against any and all losses, costs, claims and liability for so
relying or acting or refusing to act.
(c) No provision of this Agreement shall require the Bank to expend or risk or use its own funds for performance
of any of its duties hereunder
(d) The Bank may consult with counsel for the Issuer, and the written advice or opinion of counsel for the Issuer
shall be full authorization and protection with respect to any action taken, suffered or omitted by it hereunder in good
faith and reliance thereon.
(e) The Bank shall not be responsible for delays or failures in performance resulting from acts beyond its control,
including without limitation acts of God, strikes, lockouts, riots, acts of war or terror, epidemics, governmental
regulations, fire, communication line failures, computer viruses, power failures, earthquakes or other disasters.
(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. Money Held by Bank. Money held by the Bank hereunder need not be segregated from other
funds. The Bank shall have no duties with respect to investment of funds deposited with it and shall be under no obligation
to pay interest on any money received by it hereunder.
Any money deposited with or otherwise held by the Bank for the payment of the principal, redemption premium
(if any) or interest on any Bond and remaining unclaimed, by the Registered Owner (or by the Issuer (which claim by the
Issuer shall be made in writing) after maturity and prior to escheatment) will be escheated pursuant to Iowa law. If funds
are returned to the Issuer, the Issuer and the Bank agree that the Registered Owner of such Bond shall thereafter look only
to the Issuer for payment thereof, and that all liability of the Bank with respect to such moneys shall thereupon cease.
Section 5.06. Other Transactions. The Bank may engage in or be interested in any financial or other transaction
with the Issuer.
Section 5.07. Intemleader. 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.
"PI 11711 D&I 0:1
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by both of
the parties hereto.
Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written consent
of the other party.
Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver or other document
provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed, faxed, sent pdf or delivered
to the Issuer or the Bank, respectively, at the address shown below, or such other address as may have been given by one
party to the other by fifteen (15) days written notice:
If to the Issuer: City of Iowa City, Iowa, Finance Department
Mr. Dennis Bockenstedt, Finance Director
410 E. Washington Street
Iowa City, IA 52240-1826
Facsimile: 319-341-4008
If to the Bank: U.S. Bank National Association
60 Livingston Avenue
St. Paul MN 55107
Facsimile: 651466-7431
Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience of reference only
and shall not affect the construction hereof.
Section 6.05. Successors and Assians. All covenants and agreements herein by the Issuer and the Bank shall
bind their successors and assigns, whether so expressed or not.
Section 6.06. Severability. If any provision of this Agreement shall be determined to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected
or impaired thereby.
Section 6.07. Benefits of Agreement. Nothing herein, express or implied, shall give to any Person, other than
the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy or claim hereunder.
Section 6.08. Entire Agreement. ement. This Agreement shall constitute the entire agreement between the parties
hereto relative to the Bank acting as Paying Agent and Bond Registrar.
Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall
be deemed an original and all of which shall constitute one and the same Agreement.
Section 6.10. Term and Termination. This Agreement may be terminated by either party by giving the other
party at least 90 days advance written notice. At termination of the Agreement, Agent shall deliver to Issuer any and all
records, documents or other writings made or accumulated in the performance of its duties under this Agreement and
shall refund the unearned balance, if any, of fees paid in advance by Issuer. If the Bank shall resign, or become
incapable of acting, the Issuer shall promptly appoint a successor Paying Agent and Bond Registrar
Section 6.11. Governing This Agreement shall be construed in accordance with and shall be governed by
the laws of the State of Iowa.
Section 6.12. Documents to be Filed with Bank. At the time of the Bank's appointment as Paying Agent and
Bond Registrar, the Issuer shall file with the Bank the following documents: (a) a specimen Bond; (b) a copy of the
opinion of bond counsel provided to the Issuer in connection with the issuance of the Bonds; and (c) such other relevant
information that the Bank may request.
Section 6.13. Patriot Act Compliance. To help the government fight the funding of terrorism and money
laundering activities, Federal law requires all financial institutions to obtain, verify and record information that
identifies each person who opens an account. For a non -individual person such as a business entity, a charity, a Trust
or other legal entity we will ask for documentation to verify its formation and existence as a legal entity. We may
also ask to see financial statements, licenses, identification and authorization documents from individuals claiming
authority to represent the entity or other relevant documentation.
Section 6.14. Examination of Records. Issuer or its duly authorized agents may examine all records relating
to the Obligations at the principal office of the Agent at reasonable times as agreed upon with the Agent and such
records shall be subject to audit from time to time at the request of Issuer or Agent. The Agent, on request, will
furnish Issuer with a list of the names, addresses, and other information concerning the owners of the Obligations or
any of them.
01097925-1\10714-119
embank®
U.S. Bank Customer Confidential
Schedule of Fees for Services as
Paying Agent
CTSO1010A Acceptance Fee The acceptance fee includes the administrative review of 325.00
documents, initial set-up of the account, and other reasonably required
services up to and including the closing. This is a one-time, non-refundable
fee, payable at closing.
CTS04110 Paying Agent / Registrar / Transfer Agent Annual fee for the standard 375.00
transfer agent, registrar, and paying agent services associated with the
administration of the account. Administration fees are payable in advance.
Direct Out of Pocket Expenses Reimbursement of expenses associated At Cost
with 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.
TAX EXEMPTION CERTIFICATE
of
CITY OF IOWA CITY, COUNTY OF JOHNSON, STATE OF IOWA, ISSUER
$8,895,000 General Obligation Bonds, Series 2018A
This instrument was prepared by:
Ahlers & Cooney, P.C.
100 Court Avenue, Suite 600
Des Moines, Iowa 50309
(515) 243-7611
TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................1
ARTICLE I DEFINITIONS.........................................................................................................1
ARTICLE II SPECIFIC CERTIFICATIONS, REPRESENTATIONS AND
AGREEMENTS.................................................................................................................5
Section 2.1
Authority to Certify and Expectations.........................................................5
Section 2.2
Receipts and Expenditures of Sale Proceeds...............................................7
Section 2.3
Purpose of Bonds.........................................................................................8
Section 2.4
Facts Supporting Tax -Exemption Classification.........................................8
Section 2.5
Facts Supporting Temporary Periods for Proceeds.....................................9
Section 2.6
Resolution Funds at Restricted or Unrestricted Yield.................................9
Section 2.7
Pertaining to Yields....................................................................................10
Section 2.8
Reimbursement Bonds...............................................................................10
ARTICLE III REBATE..............................................................................................................11
Section3.1
Records......................................................................................................11
Section3.2
Rebate Fund...............................................................................................1
I
Section 3.3
Exceptions to Rebate..................................................................................12
Section 3.4
Calculation of Rebate Amount...................................................................13
Section 3.5
Rebate Requirements and the Bond Fund..................................................14
Section 3.6
Investment of the Rebate Fund..................................................................14
Section 3.7
Payment to the United States.....................................................................14
Section3.8
Records......................................................................................................14
Section 3.9
Additional Payments..................................................................................15
ARTICLE IV INVESTMENT RESTRICTIONS.....................................................................15
Section 4.1
Avoidance of Prohibited Payments............................................................15
Section 4.2
Market Price Requirement.........................................................................15
Section 4.3
Investment in Certificates of Deposit........................................................16
Section 4.4
Investment Pursuant to Investment Contracts and Agreements ................16
Section4.5
Records......................................................................................................18
Section 4.6
Investments to be Legal.............................................................................18
ARTICLE V GENERAL
COVENANTS..................................................................................19
ARTICLE VI AMENDMENTS AND ADDITIONAL AGREEMENTS...............................19
Section 6.1
Opinion of Bond Counsel; Amendments...................................................19
Section 6.2
Additional Covenants, Agreements...........................................................19
Section 6.3
Internal Revenue Service Audits...............................................................19
Section6.4
Amendments..............................................................................................19
ARTICLE VII QUALIFIED
TAX EXEMPT OBLIGATIONS..............................................20
EXHIBIT "A"
EXHIBIT "B"
TAX EXEMPTION CERTIFICATE
CITY OF IOWA CITY, STATE OF IOWA
THIS TAX EXEMPTION CERTIFICATE made and entered into on June I, 2018, 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 $8,895,000 General Obligation Bonds, Series 2018A (the "Bonds"). The Bonds are issued
pursuant to the provisions of the Resolution of the Issuer authorizing the issuance of the Bonds.
Such Resolution provides that the covenants contained in this Certificate constitute a part of the
Issuer's contract with the owners of the Bonds.
The Issuer recognizes that under the Code (as defined below) the tax-exempt status of the
interest received by the owners of the Bonds is dependent upon, among other things, the facts,
circumstances, and reasonable expectations of the Issuer as to future facts not in existence at this
time, as well as the observance of certain covenants in the future. The Issuer covenants that it
will take such action with respect to the Bonds as may be required by the Code, and pertinent
legal regulations issued thereunder in order to establish and maintain the tax-exempt status of the
Bonds, including the observance of all specific covenants contained in the Resolution and this
Certificate.
ARTICLE I
DEFINITIONS
The following terms as used in this Certificate shall have the meanings set forth below.
The terms defined in the Resolution shall retain the meanings set forth therein when used in this
Certificate. Other terms used in this Certificate shall have the meanings set forth in the Code or
in the Regulations.
• "Annual Debt Service" means the principal of and interest on the Bonds
scheduled to be paid during a given Bond Year.
• "Bonds" means the $8,895,000 aggregate principal amount of General
Obligation Bonds, Series 2018A, of the Issuer issued in registered form pursuant to the
Resolution.
• "Bond Counsel" means Ahlers & Cooney, P.C., Des Moines, Iowa, or an
attorney at law or a firm of attorneys of nationally recognized standing in matters
pertaining to the tax-exempt status of interest on obligations issued by states and their
political subdivisions, duly admitted to the practice of law before the highest court of any
State of the United States of America.
"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.
• "Issue Price" as defined in Regulation 1.148-1(b) and (f)(2), means the
price determined pursuant to the Special Rule for Competitive Sales in accordance with
Regulation 1.148-1(f)(2)(iii) . The Issuer hereby elects to utilize the Special Rule for
Competitive Sales and treats the reasonably expected initial offering price to the public as
of the sale date as the issue price of the Bonds. The Purchasers have certified the Issue
Price to be not more than $9,130,940.15, 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 cavy out the govemmental 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:
a) acquisition, construction, reconstruction, and improvement of real and
personal property, useful for the protection of property in the City from the effects
of flood waters, including construction and improvement of embankments and the
development and beautification of the banks and other areas adjacent to flood
control improvements;
b) opening, widening, extending, grading, and draining of the right-of-way of
streets, highways, avenues, alleys and public grounds, and market places, and the
removal and replacement of dead or diseased trees thereon; the construction,
reconstruction, and repairing of any street improvements, bridges, grade crossing
separations and approaches; the acquisition, installation, and repair of sidewalks,
culverts, retaining walls, storm sewers, sanitary sewers, water service lines, street
lighting, and traffic control devices; and the acquisition of any real estate needed
for any of the foregoing purposes;
c) rehabilitation and improvement of parks already owned, including the
removal, replacement and planting of trees in the parks, and facilities, equipment,
and improvements commonly found in city parks;
d) acquisition, construction, reconstruction, enlargement, improvement, and
equipping of city halls, recreation grounds, recreation buildings, juvenile
playgrounds, recreation centers, and parks, and the acquisition of any real estate
necessary therefor; and
c) acquisition, construction, reconstruction, enlargement, improvement, and
equipping of portions of the new public works facility,
including sums already expended that meet the requirements of Section 2.8 hereof, as
more fully described in the Resolution.
• "Project Fund" shall mean the fund required to be established by the
Resolution for the deposit of the Proceeds of the Bonds.
• "Purchasers" means BOK Financial Securities, Inc. of Milwaukee,
Wisconsin, constituting the initial purchasers of the Bonds from the Issuer.
"Rebate Amount" means the amount computed as described in this
Certificate.
"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(l), 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 15, 2018,
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.
0
• "SLGS" means demand deposit Treasury securities of the State and Local
Government Series.
• "Tax Exempt Obligations" means bonds or other obligations the interest
on which is excludable from the gross income of the owners thereof under Section 103 of
the Code and include certain regulated investment companies, stock in tax-exempt mutual
funds and demand deposit SLGS.
• "Taxable Obligations" means all investment property, obligations or
securities other than Tax Exempt Obligations.
• "Verification Certificate" means the certificate attached to this Certificate
as Exhibit A, setting forth the offering prices at which the Purchaser will reoffer and sell
the Bonds to the public.
ARTICLE II
SPECIFIC CERTIFICATIONS, REPRESENTATIONS
AND AGREEMENTS
The Issuer hereby certifies, represents and agrees as follows:
Section 2.1 Authoritv to Certifv and Expectations
(a) The undersigned officer of the Issuer along with other officers of the
Issuer, are charged with the responsibility of issuing the Bonds.
(b) This Certificate is being executed and delivered in part for the purposes
specified in Section 1.148-2(b)(2) of the Regulations and is intended (among other
purposes) to establish reasonable expectations of the Issuer at this time.
(c) The Issuer has not been notified of any disqualification or proposed
disqualification of it by the Commissioner of the Internal Revenue Service as a bond
issuer which may certify bond issues under Section 1.148-2(b)(2) of the Regulations.
(d) The certifications, representations and agreements set forth in this Article
II are made on the basis of the facts, estimates and circumstances in existence on the date
hereof, including the following: (1) with respect to amounts expected to be received from
delivery of the Bonds, amounts actually received, (2) with respect to payments of
amounts into various funds or accounts, review of the authorizations or directions for
such payments made by the Issuer pursuant to the Resolution and this Certificate, (3)
with respect to the Issue Price, the certifications of the Purchasers as set forth in the
Verification Certificate, (4) with respect to expenditure of the Proceeds of the Bonds,
actual expenditures and reasonable expectations of the Issuer as to when the Proceeds
will be spent for purposes of the Project, (5) with respect to Bond Yield, review of the
Verification Certificate, and (6) with respect to the amount of governmental and qualified
501(c)(3) bonds to be issued during the calendar year, the budgeting and present planning
of Issuer. The Issuer has no reason to believe such facts, estimates or circumstances are
untrue or incomplete in any material way.
(e) To the best of the knowledge and belief of the undersigned officer of the
Issuer, there are no facts, estimates or circumstances that would materially change the
representations, certifications or agreements set forth in this Certificate, and the
expectations herein set out are reasonable.
(f) No arrangement exists under which the payment of principal or interest on
the Bonds would be directly or indirectly guaranteed by the United States or any agency
or instrumentality thereof.
(g) After the expiration of any applicable temporary periods, and excluding
investments in a bona fide debt service fund or reserve fund, not more than five percent
(5%) of the Proceeds of the Bonds will be (a) used to make loans which are guaranteed
by the United States or any agency or instrumentality thereof, or (b) invested in federally
insured deposits or accounts.
(h) The Issuer will file with the Internal Revenue Service in a timely fashion
Form 8038-G, Information Return for Tax -Exempt Governmental Obligations with
respect to the Bonds and such other reports required to comply with the Code and
applicable Regulations.
(i) The Issuer will take no action which would cause the Bonds to become
"private activity bonds" as defined in Section 141 (a) of the Code, including any use of
the Project by any person other than a governmental unit if such use will be by other than
a member of the general public. None of the Proceeds of the Bonds will be used directly
or indirectly to make or finance loans to any person other than a governmental unit.
0) The Issuer will make no change in the nature or purpose of the Project
except as provided in Section 6.1 hereof.
(k) Except as provided in the Resolution, the Issuer will not establish any
sinking fund, bond fund, reserve fund, debt service fund or other fund reasonably
expected to be used to pay debt service on the Bonds (other than the Bond Fund),
exercise its option to redeem Bonds prior to maturity or effect a refunding of the Bonds.
(1) Except for the Bonds described as $3,100,000 Taxable General Obligation
Bonds, Series 2018B, 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. The Series 2018B Bonds were not issued pursuant
to a common plan of financing for the issuance of the Bonds and payable out of
substantially the same source of revenues.
(m) None of the Proceeds of the Bonds will be used directly or indirectly to
replace funds of the Issuer used directly or indirectly to acquire obligations having a yield
higher than the Bond Yield.
(n) No portion of the Bonds is issued for the purpose of investing such portion
at a higher yield than the Bond Yield.
(o) The Issuer does not expect that the Proceeds of the Bonds will be used in a
manner that would cause them to be "arbitrage bonds" as defined in Section 148(a) of the
Code. The Issuer does not expect that the Proceeds of the Bonds will be used in a
manner that would cause the interest on the Bonds to be includible in the gross income of
the owners of the Bonds under the Code. The Issuer will not intentionally use any
portion of the Proceeds to acquire higher yielding investments.
(p) The Issuer will not use the Proceeds of the Bonds to exploit the difference
between tax-exempt and taxable interest rates to obtain a material financial advantage.
(q) The Issuer has not issued more Bonds, issued the Bonds earlier, or allowed
the Bonds to remain outstanding longer than is reasonably necessary to accomplish the
governmental purposes of the Bonds and in fact, the Bonds will not remain outstanding
longer than 120% of the economic useful life of the assets financed with the Proceeds of
the Bonds.
(r) The Bonds will not be Hedge Bonds as described in Section 149(g)(3) of
the Code because the Issuer reasonably expects that it will meet the Expenditure test set
forth in Section 2.5(b) hereof and that 50% or more of the Proceeds will not be invested
in Nonpurpose Investments having a substantially guaranteed yield for four or more
years.
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 2.2 Receipts and Expenditures of Sale Proceeds
Sale Proceeds (par plus re -offering premium of $235,940.15), less underwriter's discount
of $51,548.75, received at Closing are expected to be deposited and expended as follows:
(a) $-0- representing pre -issuance accrued interest will be deposited into the
Bond Fund and will be used to pay a portion of the interest accruing on the Bonds on the
first interest payment date; and
(b) $55,356.00 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
(c) $9,024,035.40 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 2.3 Purpose of Bonds
The Issuer is issuing the Bonds to pay the costs of
a) acquisition, construction, reconstruction, and improvement of real and personal
property, useful for the protection of property in the City from the effects of flood waters,
including construction and improvement of embankments and the development and
beautification of the banks and other areas adjacent to flood control improvements;
b) opening, widening, extending, grading, and draining of the right-of-way of streets,
highways, avenues, alleys and public grounds, and market places, and the removal and
replacement of dead or diseased trees thereon; the construction, reconstruction, and
repairing of any street improvements, bridges, grade crossing separations and approaches;
the acquisition, installation, and repair of sidewalks, culverts, retaining walls, storm
sewers, sanitary sewers, water service lines, street lighting, and traffic control devices;
and the acquisition of any real estate needed for any of the foregoing purposes;
c) rehabilitation and improvement of parks already owned, including the removal,
replacement and planting of trees in the parks, and facilities, equipment, and
improvements commonly found in city parks;
d) acquisition, construction, reconstruction, enlargement, improvement, and equipping of
city halls, recreation grounds, recreation buildings, juvenile playgrounds, recreation
centers, and parks, and the acquisition of any real estate necessary therefor; and
e) acquisition, construction, reconstruction, enlargement, improvement, and equipping of
portions of the new public works facility.
Section 2.4 Facts Sunnortine Tax -Exemption Classification
Governmental Bonds
Private Business Use/Private Securitv or Pavment 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.
Private Loan Financing Test
No amount of Proceeds of the Bonds is to be used directly or indirectly to make or
finance loans to persons other than governmental units.
Section 2.5 Facts Supporting Temporary Periods for Proceeds
(a) Time Test. Not later than six months after the Closing Date, the Issuer
will incur a substantial binding obligation to a third party to expend at least 5% of the net
Sale Proceeds of the Bonds.
(b) Expenditure Test. Not less than 85% of the net Sale Proceeds will be
expended for Project costs, including the reimbursement of other funds expended to date,
within a three-year temporary period from the Closing Date.
(c) Due Diligence Test. Not later than six months after Closing, work on the
Project will have commenced and will proceed with due diligence to completion.
(d) Proceeds of the Bonds representing less than six months accrued interest
on the Bonds will be spent within six months of this date to pay interest on the Bonds,
and will be invested without restriction as to yield for a temporary period not in excess of
six months.
Section 2.6 Resolution Funds at Restricted or Unrestricted Yield
(a) Proceeds of the Bonds will be held and accounted for in the manner
provided in the Resolution. The Issuer has not and does not expect to create or establish
any other bond fund, reserve fund, or similar fund or account for the Bonds. The Issuer
has not and will not pledge any moneys or Taxable Obligations in order to pay debt
service on the Bonds or restrict the use of such moneys or Taxable Obligations so as to
give reasonable assurances of their availability for such purposes.
(b) Any monies which are invested beyond a temporary period are expected to
constitute less than a major portion of the Bonds or to be restricted for investment at a
yield not greater than one-eighth of one percent above the Bond Yield.
(c) The Issuer has established and will use the Bond Fund primarily to
achieve a proper matching of revenues and debt service within each Bond Year and the
Issuer will apply moneys deposited into the Bond Fund to pay the principal of and
interest on the Bonds. Such Fund will be depleted at least once each Bond Year except
for a reasonable carryover amount. The carryover amount will not exceed the greater of
(1) one year's earnings on the Bond Fund or (2) one -twelfth of Annual Debt Service. The
Issuer will spend moneys deposited from time to time into such fund within 13 months
after the date of deposit. Revenues, intended to be used to pay debt service on the Bonds,
will be deposited into the Bond Fund as set forth in the Resolution. The Issuer will spend
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 2.7 Pertaining to Yields
(a) The purchase price of all Taxable Obligations to which restrictions apply
under this Certificate as to investment yield or rebate of Excess Earnings, if any, has been
and shall be calculated using (i) the price taking into account discount, premium and
accrued interest, as applicable, actually paid or (ii) the fair market value if less than the
price actually paid and if such Taxable Obligations were not purchased directly from the
United States Treasury. The Issuer will acquire all such Taxable Obligations directly
from the United States Treasury or in an arm's length transaction without regard to any
amounts paid to reduce the yield on such Taxable Obligations. The Issuer will not pay or
permit the payment of any amounts (other than to the United States) to reduce the yield
on any Taxable Obligations. Obligations pledged to the payment of debt service on the
Bonds after they have been acquired by the Issuer will be treated as though they were
acquired for their fair market value on the date of such pledge or deposit.
(b) Qualified guarantees have not been used in computing yield.
(c) The Bond Yield has been computed as not less than 2.3829641 percent.
This Bond Yield has been computed on the basis of a purchase price for the Bonds equal
to the Issue Price.
Section 2.8 Reimbursement Bonds
(a) Not later than 60 days after payment of Original Expenditures, the Issuer
has adopted an Official Intent and has declared its intention to make a Reimbursement
Allocation of Original Expenditures incurred in connection with Project Segment(s) from
proceeds of the Reimbursement Bonds.
(b) The Reimbursement Allocation will occur on or before the later of (i)
eighteen months after the Original Expenditures are paid or (ii) eighteen months after the
first Project Segment is placed in service, but in no event more than three years after the
Original Expenditures are paid.
(c) No other Reimbursement Allocation will be made except for Preliminary
Expenditures.
(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 terns shall have the meanings
set forth below:
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(1) "Official Intent" means a declaration of intent described under
Regulation 1.150-2 to reimburse Original Expenditures with the proceeds of the
Bonds.
(2) "Original Expenditure" means an expenditure for a governmental
purpose that is originally paid from a source other than the Reimbursement
Bonds.
(3) "Preliminary Expenditures", as defined in Regulation 1.150-
2(0(2), means architectural, engineering, surveying, soil tests, Reimbursement
Bond issuance costs, and similar costs incurred prior to commencement of
construction, rehabilitation or acquisition of a Project Segment which do not
exceed 20% of the Issue Price of the portion of the Bonds that finances the Project
Segment for which they were incurred.
(4) "Project Segment" means the costs, described in an Official Intent
of the Issuer, incurred prior to the Closing Date to acquire, construct, or improve
land, buildings or equipment excluding current operating expenses but including
costs of issuing the Reimbursement Bonds.
(5) "Reimbursement Allocation" means written evidence of the use of
Reimbursement Bond proceeds to reimburse a fund of the Issuer for Original
Expenditures paid or advanced prior to the Closing Date and incurred in
connection with a Project Segment.
(6) "Reimbursement Bonds" means the portion of the Bonds which are
allocated to reimburse the Original Expenditures paid prior to the Closing Date
and incurred in connection with a Project Segment.
ARTICLE III
REBATE
Section 3.1 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 3.2 Rebate Fund
(a) In the Resolution, the Issuer has covenanted to pay to the United States the
Rebate Amount, an amount equal to the Excess Earnings on the Gross Proceeds Funds, if
any, at the times and in the manner required or permitted and subject to stated special
rules and allowable exceptions.
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(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 3.3 Exceptions to Rebate
The Issuer reasonably expects that the Bonds are eligible for one or more exceptions from
the arbitrage rebate rules set forth in the Regulations. If any Proceeds are ineligible, or become
ineligible, for an exception to the arbitrage rebate rules, the Issuer will comply with the
provisions of this Article III. A description of the applicable rebate exceptions is as follows:
Six Month Exception
The Gross Proceeds of the Bonds are expected to be fully expended for the governmental
purposes for which the Bonds were issued no later than six months after the date of issue. If
contrary to the reasonable expectations of the Issuer, the Gross Proceeds are not expended within
six months if no other exemption applies, the Issuer will comply with the arbitrage rebate
requirements of the Code.
Eighteen -Month Exception
The Gross Proceeds of the Bonds are expected to be expended for the governmental
purposes for which the Bonds were issued in accordance with the following schedule:
1) 15 percent spent within six months of the Closing Date;
2) 60 percent spent within one year of the Closing Date;
3) 100 percent spent within eighteen months of the Closing Date (subject to 5
percent retainage for not more than one year).
In any event, the Issuer expects that the 5% reasonable retainage will be spent within 30 months
of the Closing Date. For purposes of determining compliance with the six-month and twelve-
month spending periods, the amount of investment earnings included shall be based on the
Issuer's reasonable expectations that the average annual interest rate on investments will be not
more than 6%. For purposes of determining compliance with the eighteen -month spending
period, the amount of investment earnings included shall be based on actual earnings. If the
Issuer fails to meet the foregoing expenditure schedule if no other exemption applies, the Issuer
shall comply with the arbitrage rebate requirements of the Code.
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Election to Treat as Construction Bonds.
The Issuer reasonably expects that more than 75 percent of the "available construction
proceeds" ("ACP") of the Bonds, as defined in Section 148(f)(4)(C)(vi) of the Code, will be used
for construction expenditures. ACP includes the issue price of the issue plus the earnings on
such issue. Not less than the following percentages of the ACP will be spent within the
following periods:
1) 10 percent spent within six months of the Closing Date;
2) 45 percent spent within one year of the Closing Date;
3) 75 percent spent within eighteen months of the Closing Date;
4) 100 percent spent within two years of the Closing Date (subject to 5
percent retainage for not more than one year).
In any event, the Issuer expects that the 5% reasonable retainage will be spent within a three-year
period beginning on the Closing Date. A failure to spend an amount that does not exceed the
lesser of (i) 3% of the issue price or (ii) $250,000, is disregarded if the Issuer exercises due
diligence to complete the Project.
Election with respect to future earnings
Pursuant to Section 1. 1 48-7(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
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 3.4 Calculation of Rebate Amount
(a) As soon after each Computation Date as practicable, the Issuer shall, if
necessary, calculate and determine the Excess Earnings on the Gross Proceeds Funds (the
"Rebate Amount'). All calculations and determinations with respect to the Rebate
Amount will be made on the basis of actual facts as of the Computation Date and
reasonable expectations as to future events.
(b) If the Rebate Amount exceeds the amount currently on deposit in the
Rebate Fund, the Issuer may deposit an amount in the Rebate Fund such that the balance
in the Rebate Fund after such deposit equals the Rebate Amount. If the amount in the
Rebate Fund exceeds the Rebate Amount, the Issuer may withdraw such excess amount
provided that such withdrawal can be made from amounts originally transferred to the
Rebate Fund and not from earnings thereon, which may not be transferred, and only if
such withdrawal may be made without liquidating investments at a loss.
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Section 3.5 Rebate Requirements and the Bond Fund
It is expected that the Bond Fund described in the Resolution and Section 2.6(c) of this
Certificate will be treated as a bona fide debt service fund as defined in Regulation 1.148-1(b).
As such, any amount earned during a Bond Year on the Bond Fund and amounts earned on such
amounts, if allocated to the Bond Fund, will not be taken into account in calculating the Rebate
Amount for the reasons outlined in Section 2.6(c) hereof. However, should annual gross
earnings exceed $100,000 or 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 3.6 Investment of the Rebate Fund
(a) Immediately upon a transfer to the Rebate Fund, the Issuer may invest all
amounts in the Rebate Fund not already invested and held in the Rebate Fund, to the
extent possible, in (1) SLGS, such investments to be made at a yield of not more than
one-eighth of one percent above the Bond Yield, (2) Tax Exempt Obligations, (3) direct
obligations of the United States or (4) certificates of deposit of any bank or savings and
loan association. All investments in the Rebate Fund shall be made to mature not later
than the next Rebate Payment Date.
(b) If the Issuer invests in SLGS, the Issuer shall file timely subscription
forms for such securities (if required). To the extent possible, amounts received from
maturing SLGS shall be reinvested immediately in zero yield SLGS maturing on or
before the next Rebate Payment Date.
Section 3.7 Payment to the United States
(a) On each Rebate Payment Date, the Issuer will pay to the United States at
least ninety percent (90%) of the Rebate Amount less a computation credit of $1,000 per
Bond Year for which the payment is made.
(b) The Issuer will pay to the United States not later than sixty (60) days after
the Final Bond Retirement Date all the rebatable arbitrage as of such date and any income
attributable to such rebatable arbitrage as described in Regulation 1.148-3(f)(2).
(c) If necessary, on each Rebate Payment Date, the Issuer will mail a check to
the Internal Revenue Service Center, Ogden, UT 84201. Each payment shall be
accompanied by a copy of Form 8038-T, Arbitrage Rebate, filed with respect to the
Bonds or other information reporting form as is required to comply with the Code and
applicable Regulations.
Section 3.8 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
14
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 3.9 Additional Payments
The Issuer hereby agrees to pay to the United States from legally available money of the
Issuer (whether or not such available money is on deposit in any fund or account related to the
Bonds) any amount which is required to be paid to the United States, but which is not available
in a fund related to the Bonds for transfer to the Rebate Fund or payment to the United States.
ARTICLE IV
INVESTMENT RESTRICTIONS
Section 4.1 Avoidance of Prohibited PaMents
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 4.2 Market Price Requirement
(a) The Issuer will not purchase or direct the purchase of Taxable Obligations
for more than the then available market price for such Taxable Obligations. The Issuer
15
will not sell, liquidate or direct the sale or liquidation of Taxable Obligations for less than
the then available market price.
(b) For purposes of this Certificate, United States Treasury obligations
purchased directly from the United States Treasury will be deemed to be purchased at the
market price.
Section 4.3 Investment in Certificates of Deposit
(a) Notwithstanding anything to the contrary contained herein or in the
Resolution, the Issuer will invest or direct the investment of funds on deposit in any
Gross Proceeds Fund, the Bond Fund, and the Rebate Fund, in a certificate of deposit of a
bank or savings bank which is permitted by law and by the Resolution only if the
purchase price of such a certificate of deposit is treated as its fair market value on the
purchase date and if the yield on the certificate of deposit is not less than (1) the yield on
reasonably comparable direct obligations of the United States; and (2) the highest yield
that is published or posted by the provider to be currently available from the provider on
reasonably comparable certificates of deposit offered to the public.
(b) The certificate of deposit described in paragraph 4.3(a) above must be
executed by a dealer who maintains an active secondary market in comparable
certificates of deposit and must be based on actual trades adjusted to reflect the size and
term of that certificate of deposit and the stability and reputation of the bank or savings
bank issuing the certificate of deposit.
Section 4.4 Investment Pursuant to Investment Contracts and Agreements
The Issuer will invest or direct the investment of funds on deposit in the Gross Proceeds
Funds, the Bond Fund, and the Rebate Fund pursuant to an investment contract (including a
repurchase agreement) only if all of the following requirements are satisfied:
(a) The Issuer makes a bona fide solicitation for the purchase of the
investment. A bona fide solicitation is a solicitation that satisfies all of the following
requirements:
(1) The bid specifications are in writing and are timely forwarded to
potential providers.
(2) The bid specifications include all material terms of the bid. A term
is material if it may directly or indirectly affect the yield or the cost of the
investment.
(3) The bid specifications include a statement notifying potential
providers that submission of a bid is a representation that the potential provider
did not consult with any other potential provider about its bid, that the bid was
determined without regard to any other formal or informal agreement that the
potential provider has with the issuer or any other person (whether or not in
connection with the Bonds), and that the bid is not being submitted solely as a
Z
courtesy to the issuer or any other person for purposes of satisfying the
requirements of paragraph (d)(6)(iii)(B)(I) or (2) of Section 1.148-5 of the
Regulations.
(4) The terms of the bid specifications are commercially reasonable.
A term is commercially reasonable if there is a legitimate business purpose for the
term other than to increase the purchase price or reduce the yield of the
investment.
(5) For purchases of guaranteed investment contracts only, the terms
of the solicitation take into account the Issuer's reasonably expected deposit and
drawdown schedule for the amounts to be invested.
(6) All potential providers have an equal opportunity to bid and no
potential provider is given the opportunity to review other bids (i.e., a last look)
before providing a bid.
(7) At least three reasonably competitive providers are solicited for
bids. A reasonably competitive provider is a provider that has an established
industry reputation as a competitive provider of the type of investments being
purchased.
(b) The bids received by the Issuer meet all of the following requirements:
(1) The Issuer receives at least three bids from providers that the
Issuer solicited under a bona fide solicitation meeting the requirements of
paragraph (d)(6)(iii)(A) of Section 1.148-5 of the Regulations and that do not
have a material financial interest in the issue. A lead underwriter in a negotiated
underwriting transaction is deemed to have a material financial interest in the
issue until 15 days after the issue date of the issue. In addition, any entity acting
as a financial advisor with respect to the purchase of the investment at the time
the bid specifications are forwarded to potential providers has a material financial
interest in the issue. A provider that is a related party to a provider that has a
material financial interest in the issue is deemed to have a material financial
interest in the issue.
(2) At least one of the three bids described in paragraph
(d)(6)(iii)(B)(1) of Section 1.148-5 of the Regulations is from a reasonably
competitive provider, within the meaning of paragraph (d)(6)(iii)(A)(7) of Section
1.148-5 of the Regulations.
(3) If the Issuer uses an agent to conduct the bidding process, the agent
did not bid to provide the investment.
(c) The winning bid meets the following requirements:
17
(1) Guaranteed investment contracts. If the investment is a guaranteed
investment contract, the winning bid is the highest yielding bona fide bid
(determined net of any broker's fees).
(2) Other investments. If the investment is not a guaranteed
investment contract, the winning bid is the lowest cost bona fide bid (including
any broker's fees).
(d) The provider of the investments or the obligor on the guaranteed
investment contract certifies the administrative costs that it pays (or expects to pay, if
any) to third parties in connection with supplying the investment.
(e) The Issuer will retain the following records with the bond documents until
three years after the last outstanding bond is redeemed:
(1) For purchases of guaranteed investment contracts, a copy of the
contract, and for purchases of investments other than guaranteed investment
contracts, the purchase agreement or confirmation.
(2) The receipt or other record of the amount actually paid by the
Issuer for the investments, including a record of any administrative costs paid by
the Issuer, and the certification under paragraph (d)(6)(iii)(D) of Section 1.148-5
of the Regulations.
(3) For each bid that is submitted, the name of the person and entity
submitting the bid, the time and date of the bid, and the bid results.
(4) The bid solicitation form and, if the terms of the purchase
agreement or the guaranteed investment contract deviated from the bid solicitation
form or a submitted bid is modified, a brief statement explaining the deviation and
stating the purpose for the deviation.
(5) For purchases of investments other than guaranteed investment
contracts, the cost of the most efficient portfolio of State and Local Government
Series Securities, determined at the time that the bids were required to be
submitted pursuant to the terms of the bid specifications.
Section 4.5 Records
The Issuer will maintain records of all purchases, sales, liquidations, investments,
reinvestments, redemptions, disbursements, deposits, and transfers of amounts on deposit.
Section 4.6 Investments to be Legal
All investments required to be made pursuant to this Certificate shall be made to the
extent permitted by law. In the event that any such investment is determined to be ultra vires, it
shall be liquidated and the proceeds thereof shall be invested in a legal investment, provided that
prior to reinvesting such proceeds, the Issuer shall obtain an opinion of Bond Counsel to the
R -A
effect that such reinvestment will not cause the Bonds to become arbitrage bonds under Sections
103, 148, 149, or any other applicable provision of the Code.
ARTICLE V
GENERAL COVENANTS
The Issuer hereby covenants to perform all acts within its power necessary to ensure that
the reasonable expectations set forth in Article II hereof will be realized. The Issuer reasonably
expects to comply with all covenants contained in this Certificate.
ARTICLE VI
AMENDMENTS AND ADDITIONAL AGREEMENTS
Section 6.1 Opinion of Bond Counsel; Amendments
The various provisions of this Certificate need not be observed and this Certificate may
be amended or supplemented at any time by the Issuer if the Issuer receives an opinion or
opinions of Bond Counsel that the failure to comply with such provisions will not cause any of
the Bonds to become "arbitrage bonds" under the Code and that the terms of such amendment or
supplement will not cause any of the Bonds to become "arbitrage bonds" under the Code, or
otherwise cause interest on any of the Bonds to become includable in gross income for federal
income tax purposes.
Section 6.2 Additional Covenants, Aueements
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 6.3 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 6.4 Amendments
Except as otherwise provided in Section 6.1 hereof, all the rights, powers, duties and
obligations of the Issuer shall be irrevocable and binding upon the Issuer and shall not be subject
to amendment or modification by the Issuer.
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ARTICLE VII
QUALIFIED TAX EXEMPT OBLIGATIONS
The Issuer, a "qualified small issuer," designates the Bonds as "qualified tax exempt
obligations" as defined in Code Section 265(b)(3) and represents that the reasonably anticipated
amount of tax-exempt governmental and qualified 501(c)(3) obligations (including for this
purpose tax exempt installment sales, lease or lease purchase agreements or other tax exempt
obligations) which will be issued during the current calendar year will not exceed ten million
dollars ($10,000,000).
In support of the foregoing, the Issuer states:
(a) In the current calendar year the Issuer has issued governmental or
qualified 501(c)(3) obligations as follows:
$8,895,000 General Obligation Bonds, Series 2018A, dated June 1, 2018
(Issue covered by this certificate).
$3,100,000 Taxable General Obligation Bonds, Series 2018B, dated June 1, 2018.
(b) The Issuer expects to issue during the remainder of the calendar year
governmental or qualified 501(c)(3) obligations as follows:
None
(c) The Issuer has subordinate entities or is subordinate to another entity
governed by separate governing bodies which have issued or expect to issue
governmental or qualified 501(c)(3) obligations on behalf of the Issuer during the
calendar year which must be aggregated under Code Section 265(b)(3)(E) as follows:
None
(d) The Issuer is a member of or affiliated with one or more organizations
(such as an Iowa Code Chapter 28E or 28F organization or other multimember body
under which more than one governmental entity receives benefits) governed by a separate
governing body which has or expects to issue governmental or qualified 501(c)(3)
obligations during the calendar year all or a portion of which are allocable to the Issuer
under Code Section 265(b)(3)(C)(iii) as follows:
None
20
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)
Finance Director, City of Iowa City, State of
Iowa
21
Holding Page for
Exhibit "A"
Issue Price Certificate
CONSTRUCTION ISSUE CERTIFICATION
I, the undersigned, do hereby certify that I am the Finance Director of the City of Iowa
City, Iowa. I acknowledge that this Certificate is given as the basis for certain representations
made in the Tax Exemption Certificate delivered by the City of Iowa City, State of Iowa (the
"Issuer"), as of the date hereof, in connection with the issuance of $8,895,000 General Obligation
Bonds, Series 2018A, of the Issuer (the "Bonds").
The Issuer has elected to satisfy the requirements of Code Section 148(f)(4)(C)(iv)(I)
based upon its reasonable expectations that more than 75% of the "available construction
proceeds" of the Bonds, as defined in Section 148(f)(4)(C)(vi) of the Code, are to be used for
construction expenditures with respect to property to be owned by the Issuer as a governmental
unit.
Construction expenditures means capital expenditures, as defined in Regulation 1.150-
1(b), that, on or before the date the property financed by the expenditures is placed in service, as
defined in Regulation 1.150-2(c), will be properly chargeable to or may be capitalized as part of
the basis of (1) real property, other than expenditures for the acquisition of any interest in land or
real property other than land, (2) constructed personal property as defined in Regulation 1.148-
7(g)(3), or (3) specially developed computer software as defined in Regulation 1.148-7(g)(4),
that is functionally related and subordinate to real property or constructed personal property.
As of the date of issue of the Bonds, it is my opinion that at least 75% of the available
construction proceeds of the Issue will be used for construction expenditures as defined above.
IN WITNESS WHEREOF, I hereunto affix my official signature this (S-ji. day of
p6t 2018.
CITY OF IOWA CITY, IOWA
By:
Title: Finance Director
LIC( (13)
Od0`)
May 15, 2018
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
7:00 P .M., on the above date. There were present Mayor Throamorton in the
chair, and the following named Council Members:
Botchway, Cole, Mims, Salih, Taylor, Thomas, Throgmorton
Absent: None
Vacant: None
- 1 -
z(d 03)
Council Member Botchway introduced the following resolution entitled
"RESOLUTION APPOINTING U.S. BANK 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 Taylor seconded
the motion to adopt. The roll was called and the vote was,
AYES: Botchway, Cole, Mims, Salih
Taylor, Thomas,
NAYS: None
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution No 18-146
RESOLUTION APPOINTING U.S. BANK 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, $3,100,000 Taxable General Obligation Bonds, Series 2018B, dated June I,
2018, 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 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 National
Association.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, STATE OF IOWA:
1. That U.S. Bank 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
$3,100,000 Taxable General Obligation Bonds, Series 2018B, dated June 1, 2018.
2. That the Agreement with U.S. Bank 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.
PASSED AND APPROVED this 15th day of May, 2018.
ATTEST:
y,
City Clerk 61
M yor
1912
Council Member Botchway introduced the following Resolution entitled
'RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF $3,100,000
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2018B, AND LEVYING A TAX TO
PAY SAID BONDS; APPROVAL OF THE CONTINUING DISCLOSURE CERTIFICATE"
and moved that it be adopted. Council Member Taylor seconded the motion to
adopt, and the roll being called thereon, the vote was as follows:
AYES: Botchway, Cole Mims, Salih
Taylor, Thomas, Throgmorton
NAYS: None
Whereupon, the Mayor declared said Resolution duly adopted as follows:
Resolution No 18-147
RESOLUTION AUTHORIZING AND PROVIDING FOR THE
ISSUANCE OF $3,100,000 TAXABLE GENERAL
OBLIGATION BONDS, SERIES 2018B, AND LEVYING A
TAX TO PAY SAID BONDS; APPROVAL OF THE
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 opening, widening, extending,
grading, improvement and draining of the right-of-way of streets, avenues, alleys and public
grounds, parks and market places; the construction, reconstruction, and repairing of street
improvements; the acquisition, installation, and repair of sidewalks, street lighting, and traffic
control devices and streetscape improvements; and the acquisition of any real estate needed for
any of the foregoing purposes, essential corporate purposes, and it is deemed necessary and
advisable that Taxable General Obligation Bonds, to the amount of not to exceed $10,750,000 be
authorized for said purposes; 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 purposes; and
WHEREAS, pursuant to the provisions of Chapter 75 of the Code of Iowa, the above
mentioned Bonds were heretofore sold at public sale and action should now be taken to issue
said Bonds conforming to the terms and conditions of the best bid received at the advertised
public sale.
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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 $3,100,000 Taxable General Obligation Bonds, Series
2018B, 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 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.
Sim
• "Project" shall mean the opening, widening, extending, grading,
improvement and draining of the right-of-way of streets, avenues, alleys and public
grounds, parks and market places; the construction, reconstruction, and repairing of street
improvements; the acquisition, installation, and repair of sidewalks, street lighting, and
traffic control devices and streetscape improvements; and the acquisition of any real
estate needed for any of the foregoing purposes.
• "Project Fund" shall mean the fund required to be established by this
Resolution for the deposit of the proceeds of the Bonds.
• "Registrar" shall mean U.S. Bank 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.
• "Treasurer" shall mean the Finance Director or such other officer as shall
succeed to the same duties and responsibilities with respect to the recording and payment
of the Bonds issued hereunder.
Section 2. Levy and Certification of Annual Tax; Other Funds to be Used
a) Lew 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
$2,175,350 (cash on hand) 2018/2019
$1,026,000 2019/2020
(NOTE: For example the levy to be made and certified against the taxable valuations of
January 1, 2019 will be collected during the fiscal year commencing July 1, 2020.)
b) Resolution to be Filed With County Auditor. A certified copy of this
Resolution shall be filed with the Auditor of Johnson County, Iowa and the Auditor is
hereby instructed in and for each of the years as provided, to levy and assess the tax
hereby authorized in Section 2 of this Resolution, in like manner as other taxes are levied
and assessed, and such taxes so levied in and for each of the years aforesaid be collected
in like manner as other taxes of the City are collected, and when collected be used for the
purpose of paying principal and interest on said Bonds issued in anticipation of the tax,
and for no other purpose whatsoever.
c) Additional City Funds Available. Principal and interest coming due at any
time when the proceeds of said tax on hand shall be insufficient to pay the same shall be
promptly paid when due from current funds of the City available for that purpose and
reimbursement shall be made from such special fund in the amounts thus advanced.
Section 3. Bond Fund. Said tax shall be assessed and collected each year at the same
time and in the same manner as, and in addition to, all other taxes in and for the City, and when
collected they shall be converted into a special fund within the Debt Service Fund to be known
as the "GENERAL OBLIGATION BOND FUND NO. 2" (the 'Bond Fund"), which is hereby
pledged for and shall be used only for the payment of the principal of and interest on the Bonds
hereinafter authorized to be issued; and also there shall be apportioned to said fund its proportion
of taxes received by the City from property that is centrally assessed by the State of Iowa.
Section 4. Application of Bond Proceeds. Proceeds of the Bonds, other than accrued
interest except as may be provided below, shall be credited to the Project Fund and expended
therefrom for the purposes of issuance. Any amounts on hand in the Project Fund shall be
available for the payment of the principal of or interest on the Bonds at any time that other fimds
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, 2018, 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, 2018, as amended, or otherwise by a valid
pledge of direct obligations of the United States Government having an equivalent market value.
All such interim investments shall mature before the date on which the moneys are required for
payment of principal of or interest on the Bonds as herein provided.
Section 6. Bond Details, Execution and Redemption.
a) Bond Details. Taxable General Obligation Bonds of the City in the amount of
$3,100,000, shall be issued pursuant to the provisions of Section 384.25 of the Code of
Iowa for the aforesaid purposes. The Bonds shall be designated 'TAXABLE GENERAL
OBLIGATION BOND, SERIES 201813", be dated June 1, 2018, and bear interest from
the date thereof, until payment thereof, at the office of the Paying Agent, said interest
payable on December 1, 2018, and semiannually thereafter on the 1st day of June and
December in each year until maturity at the rates hereinafter provided.
The Bonds shall be executed by the manual or facsimile signature of the Mayor
and attested by the manual or facsimile signature of the Clerk, and impressed or printed
with the seal of the City and shall be fully registered as to both principal and interest as
provided in this Resolution; principal, interest and premium, if any, shall be payable at
Iffle
the office of the Paying Agent by mailing of a check to the registered owner of the Bond.
The Bonds shall be in the denomination of $5,000 or multiples thereof. The Bonds shall
mature and bear interest as follows:
Principal
Amount
$2,100,000
$1,000,000
Interest
Rate
Maturity
June 1st
2.350% 2019
2.600% 2020
b) Redemption. The Bonds are not subject to redemption prior to maturity.
Section 7. Issuance of Bonds in Book -Entry Form; Replacement Bonds
a) Notwithstanding the other provisions of this Resolution regarding registration,
ownership, transfer, payment and exchange of the Bonds, unless the Issuer determines to
permit the exchange of Depository Bonds for Bonds in Authorized Denominations, the
Bonds shall be issued as Depository Bonds in denominations of the entire principal
amount of each maturity of Bonds (or, if a portion of said principal amount is prepaid,
said principal amount less the prepaid amount). The Bonds must be registered in the
name of Cede & Co., as nominee for DTC. Payment of semiannual interest for any
Bonds registered in the name of Cede & Co. will be made by wire transfer or New York
Clearing House or equivalent next day funds to the account of Cede & Co. on the interest
payment date for the Bonds at the address indicated or in the Representation Letter.
b) The Bonds will be initially issued in the form of separate single authenticated
fully registered bonds in the amount of each stated maturity of the Bonds. Upon initial
issuance, the ownership of the Bonds will be registered in the registry books of the U.S.
Bank National Association kept by the Paying Agent and Registrar in the name of Cede
& Co., as nominee of DTC. The Paying Agent and Registrar and the Issuer may treat
DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name
for the purposes of payment of the principal or redemption price of or interest on the
Bonds, selecting the Bonds or portions to be redeemed, giving any notice permitted or
required to be given to registered owners of Bonds under the Resolution of the Issuer,
registering the transfer of Bonds, obtaining any consent or other action to be taken by
registered owners of the Bonds and for other purposes. The Paying Agent, Registrar and
the Issuer have no responsibility or obligation to any Participant or Beneficial Owner of
the Bonds under or through DTC with respect to the accuracy of records maintained by
DTC or any Participant; with respect to the payment by DTC or Participant of an amount
of principal or redemption price of or interest on the Bonds; with respect to any notice
given to owners of Bonds under the Resolution; with respect to the Participant(s) selected
to receive payment in the event of a partial redemption of the Bonds, or a consent given
or other action taken by DTC as registered owner of the Bonds. The Paying Agent and
Registrar shall pay all principal of and premium, if any, and interest on the Bonds only to
Cede & Co. in accordance with the Representation Letter, and all payments are valid and
effective to fully satisfy and discharge the Issuer's obligations with respect to the
principal of and premium, if any, and interest on the Bonds to the extent of the sum paid.
M
DTC must receive an authenticated Bond for each separate stated maturity evidencing the
obligation of the Issuer to make payments of principal of and premium, if any, and
interest. Upon delivery by DTC to the Paying Agent and Registrar of written notice that
DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will
be transferable to the new nominee in accordance with this Section.
c) In the event the Issuer determines that it is in the best interest of the Beneficial
Owners that they be able to obtain Bonds certificates, the Issuer may notify DTC and the
Paying Agent and Registrar, whereupon DTC will notify the Participants, of the
availability through DTC of Bonds certificates. The Bonds will be transferable in
accordance with this Section. DTC may determine to discontinue providing its services
with respect to the Bonds at any time by giving notice to the Issuer and the Paying Agent
and Registrar and discharging its responsibilities under applicable law. In this event, the
Bonds will be transferable in accordance with this Section.
d) Notwithstanding any other provision of the Resolution to the contrary, so long
as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments
with respect to the principal of and premium, if any, and interest on the Bond and all
notices must be made and given, respectively to DTC as provided in the Representation
letter.
e) In connection with any notice or other communication to be provided to
Bondholders by the Issuer or the Paying Agent and Registrar with respect to a consent or
other action to be taken by Bondholders, the Issuer or the Paying Agent and Registrar, as
the case may be, shall establish a record date for the consent or other action and give
DTC notice of the record date not less than 15 calendar days in advance of the record
date to the extent possible. Notice to DTC must be given only when DTC is the sole
Bondholder.
0 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 rarified 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 'blearing agency" as provided in Section 17A of the Securities Exchange Act
of 1934, as amended. The substitute depository shall provide for (i) immobilization of
the Depository Bonds, (ii) registration and transfer of interests in Depository Bonds by
book entries made on records of the depository or its nominee and (iii) payment of
IM
principal of, premium, if any, and interest on the Bonds in accordance with and as such
interests may appear with respect to such book entries.
h) The officers of the Issuer are authorized and directed to prepare and furnish to
the purchaser, and to the attorneys approving the legality of Bonds, certified copies of
proceedings, ordinances, resolutions and records and all certificates and affidavits and
other instruments as may be required to evidence the legality and marketability of the
Bonds, and all certified copies, certificates, affidavits and other instruments constitute
representations of the Issuer as to the correctness of all stated or recited facts.
Section 8. Registration of Bonds; Appointment of RegistrarTransfer Ownership
Delivery: and Cancellation.
a) Registration. The ownership of Bonds may be transferred only by the making
of an entry upon the books kept for the registration and transfer of ownership of the
Bonds, and in no other way. U.S. Bank National Association is hereby appointed as Bond
Registrar under the terms of this Resolution and under the provisions of a separate
agreement with the Issuer filed herewith which is made a part hereof by this reference.
Registrar shall maintain the books of the Issuer for the registration of ownership of the
Bonds for the payment of principal of and interest on the Bonds as provided in this
Resolution. All Bonds shall be negotiable as provided in Article 8 of the Uniform
Commercial Code and Section 384.31 of the Code of Iowa, subject to the provisions for
registration and transfer contained in the Bonds and in this Resolution.
b) Transfer. The ownership of any Bond may be transferred only upon the
Registration Books kept for the registration and transfer of Bonds and only upon
surrender thereof at the office of the Registrar together with an assignment duly executed
by the holder or his duly authorized attorney in fact in such form as shall be satisfactory
to the Registrar, along with the address and social security number or federal employer
identification number of such transferee (or, if registration is to be made in the name of
multiple individuals, of all such transferees). In the event that the address of the
registered owner of a Bond (other than a registered owner which is the nominee of the
broker or dealer in question) is that of a broker or dealer, there must be disclosed on the
Registration Books the information pertaining to the registered owner required above.
Upon the transfer of any such Bond, a new fully registered Bond, of any denomination or
denominations permitted by this Resolution in aggregate principal amount equal to the
unmatured and unredeemed principal amount of such transferred fully registered Bond,
and bearing interest at the same rate and maturing on the same date or dates shall be
delivered by the Registrar.
c) Registration of Transferred Bonds. In all cases of the transfer of the Bonds, the
Registrar shall register, at the earliest practicable time, on the Registration Books, the
Bonds, in accordance with the provisions of this Resolution.
d) Ownership. As to any Bond, the person in whose name the ownership of the
same shall be registered on the Registration Books of the Registrar shall be deemed and
regarded as the absolute owner thereof for all purposes, and payment of or on account of
SDE
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 famished 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 of Bonds. In the event any payment check representing
payment of principal of or interest on the Bonds is returned to the Paying Agent or if any
bond is not presented for payment of principal at the maturity or redemption date, if funds
sufficient to pay such principal of or interest on Bonds shall have been made available to
the Paying Agent for the benefit of the owner thereof, all liability of the Issuer to the
owner thereof for such interest or payment of such Bonds shall forthwith cease, terminate
and be completely discharged, and thereupon it shall be the duty of the Paying Agent to
hold such funds, without liability for interest thereon, for the benefit of the owner of such
Bonds who shall thereafter be restricted exclusively to such funds for any claim of
whatever nature on his part under this Resolution or on, or with respect to, such interest
or Bonds. The Paying Agent's obligation to hold such funds shall continue for a period
equal to two years and six months following the date on which such interest or principal
became due, whether at maturity, or at the date fixed for redemption thereof, or
otherwise, at which time the Paying Agent, shall surrender any remaining funds so held
to the Issuer, whereupon any claim under this Resolution by the Owners of such interest
or Bonds of whatever nature shall be made upon the Issuer.
g) Registration and Transfer Fees. The Registrar may furnish to each owner, at
the Issuer's expense, one bond for each annual maturity. The Registrar shall famish
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
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month preceding the payment date. All such payments shall fully discharge the obligations of
the Issuer in respect of such Bonds to the extent of the payments so made. Upon receipt of the
final payment of principal, the holder of the Bond shall surrender the Bond to the Paying Agent.
Section 11. Execution. Authentication and Delivery of the Bonds. Upon the adoption of
this Resolution, the Mayor and Clerk shall execute the Bonds by their manual or authorized
signature and deliver the Bonds to the Registrar, who shall authenticate the Bonds and deliver the
same to or upon order of the Purchaser. No Bond shall be valid or obligatory for any purpose or
shall be entitled to any right or benefit hereunder unless the Registrar shall duly endorse and
execute on such Bond a Certificate of Authentication substantially in the form of the Certificate
herein set forth. Such Certificate upon any Bond executed on behalf of the Issuer shall be
conclusive evidence that the Bond so authenticated has been duly issued under this Resolution
and that the holder thereof is entitled to the benefits of this Resolution.
No Bonds shall be authenticated and delivered by the Registrar unless and until there
shall have been provided the following:
A certified copy of the Resolution of Issuer authorizing the issuance of the Bonds;
2. A written order of Issuer signed by the Finance Director 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 Paving Agent or Regis fraz. Issuer reserves the right
to name a substitute, successor Registrar or Paying Agent upon giving prompt written notice to
each registered bondholder.
Section 13. Form of Bond. Bonds shall be printed substantially in the form as follows:
"STATE OF IOWA"
"COUNTY OF JOHNSON"
"CITY OF IOWA CITY"
"TAXABLE GENERAL OBLIGATION BOND"
"SERIES 201813"
ESSENTIAL CORPORATE PURPOSE
TAXABLE FOR FEDERAL INCOME TAX PURPOSES
Rate:
Maturity:
Bond Date: June 1, 2018
CUSIP No.:
"Registered"
Certificate No.
Principal Amount: $_
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The City of Iowa City, State of Iowa, a municipal corporation organized and existing
under and by virtue of the Constitution and laws of the State of Iowa (the "Issuer"), for value
received, promises to pay from the source and as hereinafter provided, on the maturity date
indicated above, to
(Registration panel to be completed by Registrar or Printer with name of Registered
Owner).
or registered assigns, the principal sum of (enter principal amount in long form) THOUSAND
DOLLARS in lawful money of the United States of America, on the maturity date shown above,
only upon presentation and surrender hereof at the office of U.S. Bank National Association,
Paying Agent of this issue, or its successor, with interest on the sum from the date hereof until
paid at the rate per annum specified above, payable on December 1, 2018, and semiannually
thereafter on the I st day of June and December in each year.
Interest and principal shall be paid to the registered holder of the Bond as shown on the
records of ownership maintained by the Registrar as of the 15th day of the month preceding such
interest payment date. Interest shall be computed on the basis of a 360 -day year of twelve 30 -
day months.
THE HOLDERS OF THE BONDS SHOULD TREAT THE INTEREST AS
SUBJECT TO FEDERAL INCOME TAXATION.
This Bond is issued pursuant to the provisions of Section 384.25 of the Code of Iowa, for
the purpose of paying costs of opening, widening, extending, grading, improvement and draining
of the right-of-way of streets, avenues, alleys and public grounds, parks and market places; the
construction, reconstruction, and repairing of street improvements; the acquisition, installation,
and repair of sidewalks, street lighting, and traffic control devices and streetscape improvements;
and the acquisition of any real estate needed for any of the foregoing purposes, 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.
The Bonds are not subject to redemption prior to maturity.
Ownership of this Bond may be transferred only by transfer upon the books kept for such
purpose by U.S. Bank National Association, St. Paul, Minnesota, and the Registrar. Such transfer
on the books shall occur only upon presentation and surrender of this Bond at the office of the
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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
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 National Association.
U.S. BANK NATIONAL ASSOCIATION, Registrar
St, Paul, Minnesota
By:
Authorized Signature
Registrar and Transfer Agent:U.S. Bank National Association
Paying Agent: U.S. Bank National Association
SEE REVERSE FOR CERTAIN DEFINITIONS
(Seal)
(Signature Block)
CITY OF IOWA CITY, STATE OF IOWA
By: (manual or facsimile signature)
Mayor
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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.
within Bond and does hereby irrevocably constitute and appoint
attorney in fact to transfer the said Bond on the books kept for registration of the within Bond,
with full power of substitution in the premises.
Dated:
(Person(s) executing this Assignment sign(s) here)
SIGNATURE)
GUARANTEED)
IMPORTANT - READ CAREFULLY
the
The signature(s) to this Power must correspond with the name(s) as written upon the face
of the certificate(s) or bond(s) in every particular without alteration or enlargement or any
change whatever. Signature guarantee must be provided in accordance with the
prevailing standards and procedures of the Registrar and Transfer Agent. Such standards
and procedures may require signature to be guaranteed by certain eligible guarantor
institutions that participate in a recognized signature guarantee program.
-15-
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. Closing Documents. The Mayor and City Clerk are authorized and directed
to execute, attest, seal and deliver for and on behalf of the City any other additional certificates,
documents, or other papers and perform all other acts, including without limitation the execution
of all closing documents, as they may deem necessary or appropriate in order to implement and
carry out the intent and purposes of this Resolution.
Section 15. Contract Between Issuer and Purchaser. This Resolution constitutes a
contract between said City and the purchaser of the Bonds.
Section 16. 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
-16-
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 17. Repeal of Conflicting Resolutions or Ordinances. All ordinances and
resolutions and parts of ordinances and resolutions in conflict herewith are hereby repealed.
Section 18. 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 15th day of May, 2018.
ATTEST:
1-e- ,H
9: L,- -L IL
City C erk
Ma or
-17-
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 15 th day of
May 2018.
City Clerk, City of Iowalty, State of low
(SEAL)
01476281-1\10714-131
AGREEMENT RELATING TO PAYING AGENCY, REGISTRAR AND TRANSFER AGENCY
THIS PAYING AGENTBOND REGISTRAR AGREEMENT (this "Agreement'), is entered into as ofJune
IM, 2018 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 Taxable General
Obligation Bonds, Series 2018B (the 'Bonds") in an aggregate principal amount of $3,100,000 to be issued as fully
registered bonds without coupons;
WHEREAS the Issuer will ensure all things necessary to make the Bonds the valid obligations of the Issuer, in
accordance with their terms, will be done upon the issuance and delivery thereof;
WHEREAS the Issuer and the Bank wish to provide the terms under which Bank will act as Paying Agent to
pay the principal, redemption premium (if any) and interest on the Bonds, in accordance with the terms thereof, and under
which the Bank will act as Registrar for the Bonds;
WHEREAS the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power
and authority to perform and serve as Paying Agent and Bond Registrar for the Bonds;
WHEREAS the Issuer has duly authorized the execution and delivery of this Agreement; and all things
necessary to make this Agreement a valid agreement have been done.
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
DEFINITIONS
Section 1.01. Definitions. For all purposes of this Agreement except as otherwise expressly provided or unless
the context otherwise requires:
Definition of Terms. The terms "item", "receipt", "transfer", "turnaround", "process", "business day", and other
terms used throughout the Agreement shall be deemed to have the meanings provided in Rules 17Ad-I 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" means the Bank when it is performing the function of paying agent for the Bonds.
"Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision of a government or any entity
whatsoever.
"Registered Owner" means a Person in whose name a Bond is registered in the Bond Register.
"Registrar" means the Bank when it is performing the function of registrar for the Bonds.
"Stated Maturity" when used with respect to any Bond means the date specified in the Bond as the date on which
the principal of such Bond is due and payable.
ARTICLE TWO
APPOINTMENT OF BANK AS
PAYING AGENT AND BOND REGISTRAR
Section 2.01. Appointment and Acceptance. The Issuer hereby appoints the Bank to act as Paying Agent with
respect to the Bonds, to pay to the Registered Owners in accordance with the terms and provisions of this Agreement the
principal of, redemption premium (if any), and interest on all or any of the Bonds.
The Issuer hereby appoints the Bank as Registrar with respect to the Bonds. As Registrar, the Bank shall keep
and maintain for and on behalf of the Issuer, books and records as to the ownership of the Bonds and with respect to the
transfer and exchange thereof as herein provided.
The Bank hereby accepts its appointment, and agrees to act as Paying Agent and Bond Registrar.
Section 2.02. Compensation. As compensation for the Bank's services as Paying Agent and Bond Registrar, the
Issuer hereby agrees to pay the Bank the fees and amounts set forth in. The Bank's proposal for paying agent/registrar
services dated March 12, 2015.
In addition, the Issuer agrees to reimburse the Bank, upon its request, for all reasonable and necessary out-of-
pocket expenses, disbursements, and advances, including without limitation the reasonable fees, expenses, and
disbursements made or incurred by the Bank in connection with entering into and performing under this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. Duties of Paving Agent. As Paying Agent, the Bank, provided sufficient collected funds have been
provided to it for such purpose by or on behalf of the Issuer, shall pay on behalf of the Issuer the principal of, redemption
premium, if any, and interest on each Bond in accordance with the provisions of the Bond.
Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of, redemption premium
(if any) and interest on the Bonds, to the extent such funds have herein been provided by the Issuer, as follows:
(a) The Issuer hereby agrees to provide the Paying Agent with sufficient funds to make principal
and interest payments as follows: (1) payment by check must be received by the Paying Agent at
least 5 business days prior to payment date and (2) payment by wire must be received by the Paying
Agent by the payment date and no later than 11:30 a.m. CST.
(b) On each payment date Agent will pay interest and, upon presentation and surrender of the
matured or called Obligations, will pay principal to each registered owner of the Obligations as of
the record date by mailing a check to each such owner. In any case where the date of maturity of
interest on or principal of the Obligations or the date fixed for redemption of any Obligations shall
be a Sunday or a legal holiday or a day on which the banking institutions are authorized by law to
close, then payment of interest or principal may be made on the succeeding business day with the
same force and effect as if made on the date of maturity or the date fixed for redemption.
Provided, however, that payment of principal shall be made not later than the second day after
receipt of the matured Obligation
(c) When the Agent shall receive notice from Issuer of its option to redeem Obligations prior to
maturity, the Agent shall select the Obligations to be redeemed and give notice of the redemption
thereof, all in accordance with the terms of the Obligations and the Resolution.
The Bank shall not be required to pay interest on any funds of the Issuer for any period during which such funds
are held by the Bank awaiting the presentation of the Bonds for payment.
ARTICLE FOUR
REGISTRAR
Section 4.01. Initial Delivery of Bonds. The Bonds will be initially registered and delivered to the purchaser
designated by the Issuer as one Bond for each maturity. If such purchaser delivers a written request to the Bank not later
than five business days prior to the date of initial delivery, the Bank will, on the date of initial delivery, deliver Bonds of
authorized denominations, registered in accordance with the instructions in such written request.
Section 4.02. Duties of Registrar. The Bank shall provide for the proper registration of transfer, exchange and
replacement of the Bonds. Every Bond surrendered for transfer or exchange shall be duly endorsed or be accompanied
by a written instrument of transfer, the signature on which has been guaranteed by an eligible guarantor institution, in
form acceptable to the Bank, duly executed by the Registered Owner thereof or his attorney duly authorized in writing.
The Registrar may request any supporting documentation it deems necessary or appropriate to affect a re -registration.
Bank shall comply at all times with such rules, regulations, and requirements as may govern the registration,
transfer and payment of registered Bonds including without limitation Chapters 76, 384, 554.8101 et seq.
Code of Iowa and standards issued from time to time by the Municipal Securities Rulemaking Board of the
United States and any other securities industry standard and the requirements of the Internal Revenue Code
of 1986.
For purposes of determining the registered owners of the Bonds, the record date shall be deemed to
be the fifteenth day of the month preceding the date on which payment of principal, premium, if any, or
interest is payable to the registered owners of the Bonds ("payment date") whether such payment is due to
optional redemption, operation of a sinking fund, or for any other reason.
Bank agrees that it will turnaround within three business days of receipt all items received in proper
form for transfer, process or other action pursuant to the terms of this Agreement.
Bank will promptly cancel and deliver to Issuer all Bonds or certificates representing the Bonds
surrendered to it upon payment of the principal, premium, if any, and interest owing on such Bonds.
In the event any payment check representing payment of interest or principal on the Bonds is
returned to the Bank or is not presented for payment, or if any Bonds is not presented for payment of
principal or premium, if any, at the maturity or redemption date, if funds sufficient to pay such interest on
Bonds shall have been made available to the Bank for the benefit of the owner thereof, all liability of the
Issuer to the owner thereof for such interest or payment of such Bonds shall forthwith cease, terminate and
be completely discharged, and thereupon it shall be the duty of the Bank to hold such funds, without liability
for interest thereon, for the benefit of the owner of such Bonds who shall thereafter be restricted exclusively
to such funds for any claim of whatever nature on his part under this Agreement or on, or with respect to,
such interest or Bonds. The Bank's obligation to hold such funds shall continue for a period equal to two
years and six months following the date on which such interest or principal became due, whether at maturity,
or at the date fixed for redemption thereof, or otherwise, at which time the Bank, shall surrender any
remaining funds so held to the Issuer, whereupon any claim under this Agreement by the Owners of such
interest or Bonds of whatever nature shall be made upon the Issuer.
Section 4.03. Unauthenticated Bonds. The Issuer shall provide to the Bank on a continuing basis, an adequate
inventory of unauthenticated Bonds to facilitate transfers. The Bank agrees that it will maintain such unauthenticated
Bonds in safekeeping.
Section 4.04. Form of Bond Register. The Bank as Registrar will maintain its records as Bond Registrar in
accordance with standards issued from time to time by the Municipal Securities Rulemaking Board of the United States
and any other securities industry standard and the requirements of the Internal Revenue Code of 1986 and Chapter 76 of
the Code of Iowa.
Section 4.05. Reports. The records of Bank shall be in such form as to be in compliance with standards
issued from time to time by the Municipal Securities Rulemaking Board of the United States and any other
securities industry standard and the requirements of the Internal Revenue Code of 1986 and Chapter 76 of
the Code of Iowa.
Bank's records in connection with the Bonds shall remain confidential records entitled to protection
and confidentiality pursuant to Section 22.7(17), Code of Iowa. Agent agrees that its use of the records will
be limited to the purposes of this Agreement and that Agent will make no private use or permit any private
access thereto. The Bank will not release or disclose the content of the Bond Register to any person other than to the
Issuer at its written request, except upon receipt of a subpoena or court order or as may otherwise be required by law.
Upon receipt of a subpoena or court order the Bank will notify the Issuer.
Section 4.06. Cancelled Bonds. All Bonds surrendered for payment, redemption, transfer, exchange, or
replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if surrendered to the Issuer, shall be
delivered to the Bank and, if not already cancelled, shall be promptly cancelled by the Bank. The Issuer may at any time
deliver to the Bank for cancellation any Bonds previously authenticated and delivered which the Issuer may have acquired
in any manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the Bank. All cancelled Bonds
held by the Bank for its retention period then in effect and shall thereafter be returned to the Issuer.
Section 4.07. Mutilated, Lost. Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be
destroyed, stolen or lost, the Bank shall deliver a new Bond of like amount, number, maturity date and tenor in exchange
and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond
destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Bank in connection therewith;
and, in the case of a Bond destroyed, stolen or lost, upon filing by the owner with the Bank of evidence satisfactory to
the Bank that such Bond was destroyed, stolen or lost, and of the ownership thereof, and upon famishing to the Bank of
an appropriate bond of indemnity in form, substance and amount as may be required by law and as is satisfactory to the
Bank. All Bonds so surrendered to the Bank shall be canceled by it and evidence of such cancellation shall be given to
the Issuer. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in
accordance with its terms it shall not be necessary to issue a new Bond prior to payment, provided that the owner shall
first provide the Bank with a bond of indemnity as set forth above.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of Bank. The Bank undertakes to perform the duties set forth herein. No implied duties or
obligations shall be read into this Agreement against the Bank. The Bank hereby agrees to use the funds deposited with
it for payment of the principal of and interest on the Bonds to pay the same as it shall become due and further agrees to
establish and maintain such accounts and funds as may be required for the Bank to fimction as Paying Agent.
Section 5.02. Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the statements
and correctness of the opinions expressed therein, on certificates or opinions expressed therein, on certificates or opinions
famished to the Bank by the Issuer.
(b) Bank may rely conclusively and act, without further investigation, upon any list, instruction,
certification, authorization, certificate or other instrument or paper suitably guaranteed and believed by it
in good faith and due diligence in performing its functions to be genuine and to have been signed,
countersigned or executed by any duly authorized person or persons or upon the instruction of any
authorized officer of Issuer or upon the advice of Issuer's counsel; and may register any certificate
representing the Bonds or may refuse to register any such certificate if in good faith Bank deems such
refusal necessary in order to avoid any liability on the part of either Issuer or Bank, and Issuer agrees to
indemnify and hold harmless the Bank from and against any and all losses, costs, claims and liability for so
relying or acting or refusing to act.
(c) No provision of this Agreement shall require the Bank to expend or risk or use its own funds for performance
of any of its duties hereunder
(d) The Bank may consult with counsel for the Issuer, and the written advice or opinion of counsel for the Issuer
shall be full authorization and protection with respect to any action taken, suffered or omitted by it hereunder in good
faith and reliance thereon.
(e) The Bank shall not be responsible for delays or failures in performance resulting from acts beyond its control,
including without limitation acts of God, strikes, lockouts, riots, acts of war or terror, epidemics, governmental
regulations, fire, communication line failures, computer viruses, power failures, earthquakes or other disasters.
(f) The Bank is authorized, to comply with final orders issued or process entered by any court of competent
jurisdiction with respect to any money held by the Bank hereunder. If any portion of money held by the Bank hereunder
is at any time attached, garnished or levied upon under any court order, or in case the payment, assignment, transfer,
conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment
or decree shall be made or entered by any court affecting such property or any part thereof, then and in any such event,
the Bank is authorized, to rely upon and comply with any such order, writ, judgment or decree which it is advised by
legal counsel selected by the Issuer; and if the Bank complies with any such order, writ, judgment or decree, it shall not
be liable to any of the parties hereto or to any other person or entity by reason of such compliance even though such order,
writ, judgment or decree may be subsequently reversed, modified, annulled, set aside or vacated.
Section 5.03. Recitals of Issuer. The recitals contained in the Bonds shall be taken as the statements of the
Issuer, and the Bank assumes no responsibility for their correctness.
Section 5.04. May Own Bonds. The Bank, in its individual or any other capacity, may become the owner or
pledgee of Bonds with the same rights it would have if it were not the Paying Agent and Bond Registrar for the Bonds.
Section 5.05. Money Held by Bank Money held by the Bank hereunder need not be segregated from other
funds. The Bank shall have no duties with respect to investment of funds deposited with it and shall be under no obligation
to pay interest on any money received by it hereunder.
Any money deposited with or otherwise held by the Bank for the payment of the principal, redemption premium
(if any) or interest on any Bond and remaining unclaimed, by the Registered Owner (or by the Issuer (which claim by the
Issuer shall be made in writing) after maturity and prior to escheatment) will be escheated pursuant to Iowa law. If funds
are returned to the Issuer, the Issuer and the Bank agree that the Registered Owner of such Bond shall thereafter look only
to the Issuer for payment thereof, and that all liability of the Bank with respect to such moneys shall thereupon cease.
Section 5.06. Other Transactions. The Bank may engage in or be interested in any financial or other transaction
with the Issuer.
Section 5.07. Interpleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse
claim, demand, or controversy over its person as well as funds on deposit, in a court situated in Johnson County Iowa.
The Issuer and the Bank further agree that the Bank has the right to file an action in interpleader in any court situated in
Johnson County Iowa to determine the rights of any person claiming any interest herein.
Section 5.08 Insurance. The Bank shall carry insurance in the types and amounts for the duration of this
agreement as listed in the Issuer's request for paying agent/registrar services dated February 20, 2015.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by both of
the parties hereto.
Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written consent
of the other party.
Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver or other document
provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed, faxed, sent pdf or delivered
to the Issuer or the Bank, respectively, at the address shown below, or such other address as may have been given by one
party to the other by fifteen (15) days written notice:
If to the Issuer: City of Iowa City, Iowa, Finance Department
Mr. Dennis Bockenstedt, Finance Director
410 E. Washington Street
Iowa City, IA 52240-1826
Facsimile: 319-3414008
If to the Bank: U.S. Bank National Association
60 Livingston Avenue
St. Paul MN 55107
Facsimile: 651466-7431
Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience of reference only
and shall not affect the construction hereof.
Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer and the Bank shall
bind their successors and assigns, whether so expressed or not.
Section 6.06. Severability. If any provision of this Agreement shall be determined to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected
or impaired thereby.
Section 6.07. Benefits of Agreement. Nothing herein, express or implied, shall give to any Person, other than
the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy or claim hereunder.
Section 6.08. Entire Agreement. This Agreement shall constitute the entire agreement between the parties
hereto relative to the Bank acting as Paying Agent and Bond Registrar.
Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall
be deemed an original and all of which shall constitute one and the same Agreement.
Section 6.10. Term and Termination. This Agreement may be terminated by either party by giving the other
party at least 90 days advance written notice. At termination of the Agreement, Agent shall deliver to Issuer any and all
records, documents or other writings made or accumulated in the performance of its duties under this Agreement and
shall refund the unearned balance, if any, of fees paid in advance by Issuer. If the Bank shall resign, or become
incapable of acting, the Issuer shall promptly appoint a successor Paying Agent and Bond Registrar
Section 6.11. Governing Law. This Agreement shall be construed in accordance with and shall be governed by
the laws of the State of Iowa.
Section 6.12. Documents to be Filed with Bank. At the time of the Bank's appointment as Paying Agent and
Bond Registrar, the Issuer shall file with the Bank the following documents: (a) a specimen Bond; (b) a copy of the
opinion of bond counsel provided to the Issuer in connection with the issuance of the Bonds; and (c) such other relevant
information that the Bank may request.
Section 6.13. Patriot Act Compliance. To help the government fight the funding of terrorism and money
laundering activities, Federal law requires all financial institutions to obtain, verify and record information that
identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a Trust
or other legal entity we will ask for documentation to verify its formation and existence as a legal entity. We may
also ask to see financial statements, licenses, identification and authorization documents from individuals claiming
authority to represent the entity or other relevant documentation.
Section 6.14. Examination of Records. Issuer or its duly authorized agents may examine all records relating
to the Obligations at the principal office of the Agent at reasonable times as agreed upon with the Agent and such
records shall be subject to audit from time to time at the request of Issuer or Agent. The Agent, on request, will
fiunish 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, I wa, Issuer_ —
By: lam/
Print Name: James A. Throgmorton
Title: Mayor
U.S. BANK NATIONAL ASSOCIATION, as
Paying Agent, Registrar and Transfer Agent
By: 1'. %,�AP-41•
Authorized Representatiij
Print Name: Diane L. Johnson
Title: Vice President
01097925-1\10714-119
®bank,
U.S. Bank Customer Confidential
Schedule of Fees for Services as
Paying Agent
CTSO1010A Acceptance Fee The acceptance fee includes the administrative review of 325.00
documents, initial set-up of the account, and other reasonably required
services up to and including the closing. This is a one-time, non-refundable
fee, payable at closing.
CTS04110 Paying Agent / Registrar / Transfer Agent Annual fee for the standard 375.00
transfer agent, registrar, and paying agent services associated with the
administration of the account. Administration fees are payable in advance.
Direct Out of Pocket Expenses Reimbursement of expenses associated At Cost
with 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.
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 $8,895,000 General Obligation Bonds, Series 2018A and $3,100,000 Taxable General
Obligation Bonds, Series 2018B (collectively, the "Bonds") dated June 1, 2018. The Bonds are
being issued pursuant to Resolutions of the Issuer approved on May 15, 2018 (the
"Resolutions"). The Issuer covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. 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).
Section 2. Definitions. In addition to the definitions set forth in the Resolutions, 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.
"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 1, 2018.
"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(b)(5) adopted by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, 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 2017/2018 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 MSRI3 (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-1 and A-2.
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:
2
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
"Property Valuations and Trend of Valuations", "Larger Taxpayers", "Tax Rates",
"Levies and Collections", "Debt Limit", "Direct Debt".
Any or all of the items listed above may be included by specific reference to other documents,
including official statements of debt issues of the Issuer or related public entities, which have
been filed with the National Repository. The Issuer shall clearly identify each such other
document so included by reference.
Section 5. Reporting of Significant Events.
a) Pursuant to the provisions of this Section, the Issuer shall give, or cause to be
given, notice of the occurrence of any of the following events with respect to the Bonds
in a timely manner not later than 10 Business Days after the day of the occurrence of the
event:
i. Principal and interest payment delinquencies;
ii. Non-payment related defaults, if material;
iii. Unscheduled draws on debt service reserves reflecting financial
difficulties;
iv. Unscheduled draws on credit enhancements relating to the Bonds
reflecting financial difficulties;
v. Substitution of credit or liquidity providers, or their failure to perform;
vi. Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue (IRS
Form 5701-TEB) or other material notices or determinations with respect to the
tax-exempt status of the Series Bonds, or material events affecting the tax-exempt
status of the Bonds;
vii. Modifications to rights of Holders of the Bonds, if material;
viii. Bond calls (excluding sinking fund mandatory redemptions), if
material, and tender offers;
ix. Defeasances of the Bonds;
x. Release, substitution, or sale of property securing repayment of the
Bonds, if material;
xi. Rating changes on the Bonds;
xii. Bankruptcy, insolvency, receivership or similar event of the Issuer;
xiii. The consummation of a merger, consolidation, or acquisition
involving the Issuer or the sale of all or substantially all of the assets of the Issuer,
other than in the ordinary course of business, the entry into a definitive agreement
to undertake such an action or the termination of a definitive agreement relating to
any such actions, other than pursuant to its terms, if material; and
xiv. Appointment of a successor or additional trustee or the change of
name of a trustee, if material.
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 Reportine Oblieation. 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.
13
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 Resolutions for amendments to the Resolutions 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.
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
Resolutions, and the sole remedy under this Disclosure Certificate in the event of any failure of
the Issuer to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The
Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure
Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its officers,
directors, employees and agents, harmless against any loss, expense and liabilities which it may
incur arising out of or in the exercise or performance of its powers and duties hereunder,
including the costs and expenses (including attorneys' fees) of defending against any claim of
liability, but excluding liabilities due to the Dissemination Agent's negligence or willful
misconduct. The obligations of the Issuer under this Section shall survive resignation or removal
of the Dissemination Agent and payment of the Bonds.
Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of
the Issuer, the Dissemination Agent, the Participating Underwriters and Holders and Beneficial
Owners from time to time of the Bonds, and shall create no rights in any other person or entity.
Date: 15 th day of May 2018.
CITY OF IOWA CITY, STATE OF IOWA
By-
Ma5,or
ATTEST:
By:
City Clerk
EXHIBIT A-1
NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL FINANCIAL
INFORMATION
Name of Issuer: City of Iowa City, Iowa.
Name of Bond Issue: $8,895,000 General Obligation Bonds, Series 2018A
Dated Date of Issue: June 1, 2018
NOTICE IS HEREBY GIVEN that the Issuer has not provided Annual Financial
Information with respect to the above-named Bonds as required by Section 3 of the Continuing
Disclosure Certificate delivered by the Issuer in connection with the Bonds. The Issuer
anticipates that the Annual Financial Information will be filed by
Dated: day of 120.
CITY OF IOWA CITY, STATE OF IOWA
By:
Its:
EXHIBIT A-2
NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL FINANCIAL
INFORMATION
Name of Issuer: City of Iowa City, Iowa.
Name of Bond Issue: $3,100,000 Taxable General Obligation Bonds, Series 2018B
Dated Date of Issue: June 1, 2018
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:
01472611-1\10714-130
r ICITY O F IOWA CI os_15-1i
-r � COUNCIL ACTION REP 05-151
AA141
May 15, 2018 1 4d(13
Resolutions Appointing Registrar and Paying Agent and I
Authorizing the Issuance of the Bonds.
Prepared By:
Dennis Bockenstedt, Finance Director
Reviewed By:
Ashley Monroe, Assistant to the City Manager
Fiscal Impact:
Adopted as part of the FY2019 Budget and 2018-2022 Capital
Improvement Program
Recommendations:
Staff: Approval
Commission: N/A
Attachments:
Resolution Appointing Paying Agent, Bond Registrar, and Transfer
Agent, Approving the Paying Agent and Bond Registrar and Transfer
Agent Agreement and Authorizing the Execution of the Agreement for
the Series 2018A Bonds; Resolution authorizing and providing for the
issuance, and levying a tax to pay the Bonds; Approval of the Tax
Exemption Certificate and Continuing Disclosure Certificate for the
Series 2018A Bonds; Resolution Appointing Paying Agent, Bond
Registrar, and Transfer Agent, Approving the Paying Agent and Bond
Registrar and Transfer Agent Agreement and Authorizing the Execution
of the Agreement for the Series 2018B Bonds; Resolution authorizing
and providing for the issuance, and levying a tax to pay the Bonds;
Approval of the Continuing Disclosure Certificate for the Series 2018B
Bonds.
Executive Summary:
There are four separate resolutions to appoint the registrar and paying agent and to authorize
the issuance of the 2018A General Obligation Bonds and the 2018B Taxable General
Obligation Bonds on May 15. These actions are the final City Council actions to complete the
2018 bond sales.
The first two resolutions are to 1) appoint US Bank as the paying agent and registrar for the
2018A General Obligation Bonds, and 2) approve the tax exemption certificate, the continuing
disclosure certificate, and authorize the issuance of the 2018A General Obligation Bonds.
The next two resolutions are to 1) appoint US Bank as the paying agent and registrar for the
2018B Taxable General Obligation Bonds, and 2) approve the continuing disclosure certificate
and authorize the issuance of the 2018B Taxable General Obligation Bonds.
Background / Analysis:
On May 1, 2018, the City sold two separate bond issues: the 2018A General Obligation Bonds
and the 2018B Taxable General Obligation Bonds.
'r' CITY OF IOWA CITY
COUNCIL ACTION REPORT
The City received five bids on the 2018A General Obligation Bonds from BOK Financial
Securities, FTN Financial Capital Markets, Robert W. Baird & Co, D.A. Davidson & Co, and
Northland Securities. The lowest true interest rate bid was received from BOK Financial
Securities out of Milwaukee, Wisconsin at 2.5979°/x. The 201 SA bonds are 10 year bonds that
mature in 2028.
The City received eight bids on the 2018B Taxable General Obligation Bonds from Northland
Securities, Piper Jaffray & Co, Bankers' Bank, Raymond James & Associates, SAMCO Capital
Markets, Robert W. Baird & Co, D.A. Davidson & Co, and Bernardi Securities. The lowest true
interest rate bid was received from Northland Securities out of Minneapolis, Minnesota at
2.5944%. The 2018B bonds are 2 year bonds that mature in 2020.
1-a (is)
May 15, 2018
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
7:00 P .M., on the above date. There were present Mayor Throgmorton in the
chair, and the following named Council Members:
Botchway, Cole, Mims, Salih, Taylor, Thomas, Throgmorton
Absent:
Vacant:
-2 -
Council Member Botchway introduced the following Resolution entitled
"RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING SEWER
REVENUE REFUNDING CAPITAL LOAN NOTES, SERIES 2010A, OF THE CITY OF
IOWA CITY, STATE OF IOWA, DATED APRIL 15, 2010, AND DIRECTING NOTICE BE
GIVEN" and moved its adoption. Council Member Taylor seconded the motion to
adopt. The roll was called and the vote was,
AYES: Botchway, Cole, Mims, Salih
Taylor, Thomas, Throgmorton
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
Resolution No 18-148
RESOLUTION AUTHORIZING THE REDEMPTION OF
OUTSTANDING SEWER REVENUE REFUNDING CAPITAL
LOAN NOTES, SERIES 2010A, OF THE CITY OF IOWA CITY,
STATE OF IOWA, DATED APRIL 15, 2010, AND DIRECTING
NOTICE BE GIVEN
WHEREAS, the City did by resolution dated March 23, 2010, authorize the issuance of
$15,080,000 Sewer Revenue Refunding Capital Loan Notes, Series 2010A, (the "Notes") dated
April 15, 2010; and
WHEREAS, the Notes are redeemable in any order of their numbering on July 1, 2018 or
any date thereafter upon giving notice in the manner provided in the resolution authorizing the
issuance of the Notes; and
WHEREAS, it is deemed necessary and advisable that $2,670,000 be so redeemed on
July 1, 2018 and notice of redemption be given according to the terms of the resolution
authorizing issuance of the Notes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, STATE OF IOWA:
Section 1. That outstanding Sewer Revenue Refunding Capital Loan Notes, dated April
15, 2010, in the principal amount of $2,670,000, be and the same are hereby redeemed as of
July 1, 2018.
-3 -
Section 2. The Registrar and Paying Agent, U.S. Bank National Association, St. Paul,
Minnesota, is hereby authorized and directed to cause notice of such redemption be given not
less than thirty (30) days prior to the redemption date and to cause notice of redemption to be
mailed to the registered owners of the Notes by ordinary mail, and to notify DTC.
Section 3. The Finance Director is hereby authorized and directed to cause to be
deposited in a separate fund sum sufficient to pay all principal and interest on the redeemed
Notes to the date of redemption and to notify the City's dissemination agent to post the Notice of
Redemption to the MSRB's website (EMMA) in searchable PDF format for the refunded Notes
in accordance with the Continuing Disclosure Certificate for the Notes.
Section 4. That the form of such notice be substantially as follows:
-4 -
NOTICE OF THE CALL OF NOTES FOR REDEMPTION TO THE HOLDERS OF THE
FOLLOWING DESCRIBED NOTES:
Please take notice that the Notes described below have been called for redemption.
Owners of the Notes should present their Notes for payment on the redemption date.
Issuer: City of Iowa City, State of Iowa
Original Issue Amount: $15,080,000
Note Issue: Sewer Revenue Refunding Capital Loan Notes, Series 2010A
Dated Date: April 15, 2010
Redemption Date: July 1, 2018
Redemption Price: At par, plus accrued interest
Notes Called for Redemption
CUSIP
Principal
Interest
Maturity
Numbers
Amount
Rate
June 1st
462362 LV4
$1,310,000
4.000%
2019
462362 LW2
$1,360,000
4.000%
2020
No representation is made as to the accuracy of the CUSIP numbers printed herein or on
the Notes.
The above Notes should be presented to U.S. Bank National Association, St. Paul,
Minnesota, St. Paul, Minnesota. This represents a full call of the outstanding obligations. All
interest will cease to accrue on the Redemption Date.
U.S. BANK NATIONAL ASSOCIATION
St. Paul, Minnesota
Registrar
(End of Notice)
-5 -
PASSED AND APPROVED this 15th day of May, 2018.
M or
ATTEST:
City Clerk
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 15th day of
May , 2018. J
City C erk, City of Io a City, State of 10 a
(SEAL)
01472745-1\10714-099
-1-
qd oo
May 15, 2018
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
7:00 P .M., on the above date. There were present Mayor Throgmorton in the
chair, and the following named Council Members:
Botchway, Cole, Mims, Salih, Taylor, Thomas, Throgmorton
Absent: None
Vacant: None
-2 -
Council Member Botchway introduced the following Resolution entitled
"RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING GENERAL
OBLIGATION REFUNDING CAPITAL LOAN NOTES, SERIES 2011 C, OF THE CITY OF
IOWA CITY, STATE OF IOWA, DATED JUNE 8, 2011, AND DIRECTING NOTICE BE
GIVEN" and moved its adoption. Council Member Taylor seconded the motion to
adopt. The roll was called and the vote was,
AYES: Botchway, Cole, Mims, Salih
Taylor, Thomas, Throgmorton
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
Resolution No 18-149
RESOLUTION AUTHORIZING THE REDEMPTION OF
OUTSTANDING GENERAL OBLIGATION REFUNDING
CAPITAL LOAN NOTES, SERIES 2011C, OF THE CITY OF
IOWA CITY, STATE OF IOWA, DATED JUNE 8, 2011, AND
DIRECTING NOTICE BE GIVEN
WHEREAS, the City did by resolution dated May 3, 2011, authorize the issuance of
$10,930,000 General Obligation Refunding Capital Loan Notes, Series 2011C, (the "Notes")
dated June 8, 2011; and
WHEREAS, the Notes are redeemable in any order of their numbering on June 1, 2017 or
any date thereafter upon giving notice in the manner provided in the resolution authorizing the
issuance of the Notes; and
WHEREAS, it is deemed necessary and advisable that $3,850,000 be so redeemed on
July 1, 2018 and notice of redemption be given according to the terms of the resolution
authorizing issuance of the Notes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, STATE OF IOWA:
Section 1. That outstanding General Obligation Refunding Capital Loan Notes, dated
June 8, 2011, in the principal amount of $3,850,000, be and the same are hereby redeemed as of
July 1, 2018.
-3 -
Section 2. The Registrar and Paying Agent, U.S. Bank National Association, St. Paul,
Minnesota, is hereby authorized and directed to cause notice of such redemption be given not
less than thirty (30) days prior to the redemption date and to cause notice of redemption to be
mailed to the registered owners of the Notes by ordinary mail, and to notify DTC.
Section 3. The Finance Director is hereby authorized and directed to cause to be
deposited in a separate fund sum sufficient to pay all principal and interest on the redeemed
Notes to the date of redemption and to notify the City's dissemination agent to post the Notice of
Redemption to the MSRB's website (EMMA) in searchable PDF format for the refunded Notes
in accordance with the Continuing Disclosure Certificate for the Notes.
Section 4. That the form of such notice be substantially as follows:
-4 -
NOTICE OF THE CALL OF NOTES FOR REDEMPTION TO THE HOLDERS OF THE
FOLLOWING DESCRIBED NOTES:
Please take notice that the Notes described below have been called for redemption.
Owners of the Notes should present their Notes for payment on the redemption date.
Issuer: City of Iowa City, State of Iowa
Original Issue Amount: $10,930,000
Note Issue: General Obligation Refunding Capital Loan Notes, Series 2011 C
Dated Date: June 8, 2011
Redemption Date: July 1, 2018
Redemption Price: At par, plus accrued interest
Notes Called for Redemption
CUSIP
Principal
Interest
Maturity
Numbers
Amount
Rate
June 1"
462308 A23
$1,240,000
3.250%
2019
462308 A31
$1,280,000
3.500%
2020
462308 A49
$1,330,000
3.625%
2021
No representation is made as to the accuracy of the CUSIP numbers printed herein or on
the Notes.
The above Notes should be presented to U.S. Bank National Association, St. Paul,
Minnesota. This represents a full call of the outstanding obligations. All interest will cease to
accrue on the Redemption Date.
U.S. BANK NATIONAL ASSOCIATION,
St. Paul, Minnesota
Registrar
(End of Notice)
-5 -
PASSED AND APPROVED this 15th day of May, 2018.
M or
ATTEST:
City Clerk
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 15th day of
May 2018. J)
City Clerk, City of Iowa ity, State of I tj
(SEAL)
01472726-1\10714-105
COUNCIL ACTION
May 15, 2018
Resolution Authorizing the Redemption of Outstanding General
Obligation Capital Loan Notes, Series 2011 C and Resolution Authorizing
the Redemption of Outstanding Sewer Revenue Refunding Capital Loan
Notes, Series 2010A
Prepared By:
Dennis Bockenstedt, Finance Director
Reviewed By:
Ashley Monroe, Assistant City Manager
Fiscal Impact:
Interest expense savings of $263,428 on the 2011C General Obligation
Capital Loan Notes and $161,200 interest expense savings on the
2010A Sewer Revenue Refunding Capital Loan Notes
Recommendations:
Staff: Approval
Commission: N/A
Attachments:
Resolution Authorizing the Redemption of Outstanding General
Obligation Capital Loan Notes, Series 2011 C and directing notice be
given; Resolution Authorizing the Redemption of Outstanding Sewer
Revenue Refunding Capital Loan Notes, Series 2010A and directing
notice be given
Executive Summary:
There are two separate resolutions for the early redemption of outstanding debt. One resolution
is for the early redemption of the 2011 C General Obligation Capital Loan Notes (2011 C GO
Bonds) totaling $3,850,000. The second resolution is for the early redemption of the 2010A
Sewer Revenue Refunding Capital Loan Notes (2010A Sewer Revenue Bonds) totaling
$2,670,000.
Background / Analysis:
In 2011, the City issued $10,930,000 in 2011C GO Bonds to refund the 2002 general obligation
bond issue. The 2011C GO Bonds became callable on June 1, 2017. The outstanding callable
balance on July 1, 2018 will be $3,850,000. The City intends to call the outstanding bonds at
that time with Debt Service Fund cash balance. The total interest expense savings on the early
redemption of the 2011 C GO Bonds is $263,428.
In 2010, the City issued $15,080,000 in 2010A Sewer Revenue Bonds to refund the 2001 and
2002 sewer revenue bond issues. The 2010A Sewer Revenue Bonds become callable on July
1, 2018 when the outstanding callable balance will be $2,670,000. The City intends to call the
outstanding bonds at that time with Sewer Fund cash balance. The total interest expense
savings on the early redemption of the 2010A Sewer Revenue Bonds is $161,200.
qeCl�
Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240
(319) 356-5030
RESOLUTION NO. 18-150
Resolution setting public hearing for May 29, 2018, on a
proposal to convey a single-family home located at 717 E.
Davenport Street.
WHEREAS, the UniverCity Neighborhood Partnership Program is a joint effort between the
University of Iowa and the City to encourage home ownership and reinvestment in designated
neighborhoods surrounding the University of Iowa; and
WHEREAS, the City purchases rental units located in designated neighborhoods surrounding
the University of Iowa, rehabilitates them, and then sells them to income -eligible buyers; and
WHEREAS, the City purchased and rehabilitated a single family home located at 717 E.
Davenport Street, Iowa City; and
WHEREAS, the City has received an offer to purchase 717 E. Davenport Street for the principal
sum of $165,000; and
WHEREAS, this sale would provide affordable housing in a designated area surrounding the
University of Iowa; and
WHEREAS, this sale is conditioned on the family securing adequate financing for the purchase
of the home.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, that:
1. The City Council does hereby declare its intent to convey a single family home located at
717 E. Davenport Street, Iowa City, Iowa, also known as part of Lot 2 in Block 16, Iowa
City, Iowa, for the sum of $165,000.
2. A public hearing on said proposal should be and is hereby set for May 29, 2018, at 7:00
p.m. in Emma J. Harvat Hall of the Iowa City City Hall, 410 East Washington Street, Iowa
City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter
as posted by the City Clerk, and that the City Clerk be and is hereby directed to cause
notice of said public hearing to be published as provided by law.
Resolution No. is -iso
Page 2
It was moved by Botchwav and seconded by Taylor the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Botchway
x Cole
x Mims
x Salih
x Taylor
x Thomas
x Throgmorton
Passed and approved this 15th day of May 2018.
i�
MOOR
ATTEST:
CITY CLERK
Approved by
City Attorney's Office
r C I T Y O F 1 0 WA C I T_„_,�
''� COUNCIL ACTION REPO 4e(1)
May 15, 2018
Resolution authorizing conveyance of a single family home located at 717
East Davenport Street.
Prepared By:
Lucy Joseph, NDS Code Enforcement Specialist
Reviewed By:
Tracy Hightshoe, Director, Neighborhood & Development Services
Erika Kubly, Neighborhood Services Coordinator
Simon Andrew, Assistant to the City Manager
Fiscal Impact:
The assessed value of 717 E. Davenport at the time of purchase was
$136,670 and the sale is approximately 165,000. There will be no
impact on the general fund for ongoing operating expenses.
Recommendations: Staff: Approval of the sale of 717 E. Davenport (UniverCity
Neighborhood Partnership Program home)
Commission: NA
Attachments:
Resolution
Executive Summary:
On May 15, 2018 City Council will set a public hearing for May 29, 2018 to consider a resolution
authorizing the conveyance of 717 E. Davenport as part of the UniverCity Neighborhood
Partnership Program. Once this home is sold, this will be the 62”' home sold under the program.
Background / Analysis:
717 E. Davenport
Under the UniverCity Neighborhood Partnership, the City proposes to sell 717 E. Davenport for
$165,000. The City purchased the home for $150,000. City funds were used to rehabilitate and
sell the home as a single-family owner -occupied home to an income -eligible buyer. Renovations
included electrical work, updated interior and exterior paint, plumbing, refinished hardwood
floors, carpet in 2"' floor bedroom, new light fixtures, installation of concrete driveway, privacy
fence and porch repair, updated bathroom, and a complete renovation of the kitchen. The cost
of renovations (up to 50,000) is not included in the sale price and forgiven once the homeowner
has lived there for five years. The home is required to be owner -occupied for 30 years.
Built at the turn of the century, this cozy house has two bedrooms, one bathroom, and 960
square feet of finished living space.
This home is located on a street where there is a mix of owner -occupied and rental properties.
The renovated home will be an asset to the neighborhood and community. Staff recommends
approval of the resolution to authorize the conveyance of 717 E. Davenport as part of the
UniverCity Neighborhood Partnership program.
r 4
CITY OF IOWA CITY
COUNCIL ACTION REPORT
717 E. Davenport - Before Renovations
717 E. Davenport- After Renovations
Prepared by: Joe Welter, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319) 356-5144
Resolution No. 18-151
Resolution setting a public hearing on May 29, 2018 on plans,
specifications, form of contract, and estimate of cost for the
construction of the Landfill Dual Extraction System Construction
Project, directing City Clerk to publish notice of said hearing, and
directing the City Engineer to place said plans on file for public
inspection.
Whereas, funds for this project are available in the Landfill Leachate Pumping System account #
L3330.
Now, therefore, be it resolved by the Council of the City of Iowa City, Iowa, that:
A public hearing on the plans, specifications, form of contract, and estimate of cost for the
construction of the above-mentioned project is to be held on the 291 day of May, 2018, at
7:00 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 plans, specifications, form of contract, 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 15th day of May 2018
Attest:
City Clerk Ci
Mayor '
roved y
City Attorney's Office
It was moved by sotchway and seconded by Taylor the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays:
Absent:
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
LJe(2�
CITY OF IOWA CI 05-15-18
COUNCIL ACTION REPO 4e(2)
May 15, 2018
Resolution setting a public hearing on May 29, 2018 on plans,
specifications, form of contract, and estimate of cost for the construction of
the Landfill Dual Extraction System Construction Project, directing City
Clerk to publish notice of said hearing, and directing the City Engineer to
place said plans on file for public inspection.
Prepared By: Joseph Welter - Senior Civil Engineer
Reviewed By: Jason Havel - City Engineer, Ron Knoche - Public Works Director,
Ashley Monroe — Assistant City Manager
Fiscal Impact: $450,000 available in Landfill Leachate Pumping System, Account #L3330
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
The landfill's vertical gas extraction wells, which are part of the facility's active gas collection
system, have become overwhelmed with liquid. Our consultant, Barker Lemar recommends
dewatering selected landfill gas wells to improve landfill gas extraction and limit the potential
effects of landfill gas. Barker Lemar has designed a dual extraction system for thirteen of the
facility's gas wells.
Background / Analysis:
The landfill has an active gas collection system that has been installed and expanded over time;
the most recent expansion occurred in Summer 2016. During the course of operation, many of
the vertical gas extraction wells have become overwhelmed with liquid. Barker Lemar
recommends dewatering selected landfill gas wells, which involves pumping out the
accumulated liquid from these wells and discharging it for treatment at the wastewater treatment
facility. Exposing additional perforated pipe within a well improves landfill gas extraction and
limits the potential effects of landfill gas, leachate migration and can have a positive impact on
groundwater in the vicinity of the unlined areas of the landfill, as extraction of leachate acts as a
form of leachate source control.
Barker Lemar has designed a dual extraction system for thirteen of the landfill gas wells, which
includes design of the following for the proposed system:
• Air compressor
■ Pneumatic pumps
• Layout of air lines from the compressor to the pumps
• Force main discharge lines to convey extracted liquid from the gas wells to the existing
leachate collection system
Barker Lamar will also work on an amendment to the facility's sanitary disposal project permit,
52 -SDP -01-72P, for incorporation of this new system. This amendment will be sent to the Iowa
Department of Natural Resources (DNR) following construction of the new system.
qe (3)
Prepared by: Brett Zimmerman, Public Works, 410 E. Washington St., Iowa City, IA 52240,(319)356-5044
Resolution No. 18-152
Resolution setting a public hearing on May 29, 2018 on plans,
specifications, form of contract, and estimate of cost for the
construction of the Creekside Park Improvements 2018 Project,
directing City Clerk to publish notice of said hearing, and
directing the City Engineer to place said plans on file for public
inspection.
Whereas, funds for this project are available in account # R4341.
Now, therefore, be it resolved by the Council of The City of Iowa City, Iowa, that:
1. A public hearing on the plans, specifications, form of contract, and estimate of cost for the
construction of the above-mentioned project is to be held on the 29th day of May, 2018, at
7:00 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 plans, specifications, form of contract, 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 15th day of May 12018
Ma or
p ooved by
Attest:
City Clerk City Attorney's Office
It was moved by sotchway and seconded by Taylor the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays:
Absent:
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
CITY OF IOWA CITY
COUNCIL ACTION REP 4e(3)
May 15, 2018
Resolution setting a public hearing on May 29, 2018 on plans, specifications,
form of contract, and estimate of cost for the construction of the Creekside
Park Improvements 2018 Project, directing City Clerk to publish notice of
said hearing, and directing the City Engineer to place said plans on file for
public inspection.
Prepared By: Brett Zimmerman - Civil Engineer
Reviewed By: Juli Seydell Johnson - Parks and Recreation Director
Kumi Morris - Facilities Manager
Jason Havel - City Engineer
Ron Knoche - Public Works Director
Simon Andrew — Assistant to the City Manager
Fiscal Impact: The estimated cost for this project is $563,500 and will be funded by the
Creekside Park Redevelopment account #R4341
Recommendations: Staff: Approval
Commission: Parks Commission reviewed the Park Redevelopment
Master Plan on June 14, 2017.
Attachments: Resolution
Executive Summary:
This agenda item begins the bidding process for the Creekside Park Improvements 2018
Project. Base bid scope of work for this project includes removal and replacement of the
existing shelter, restrooms, play area, play equipment and pavement; installation of drinking
fountain, benches, bike repair station, dog litter bag station, garbage and recycling containers;
site landscaping, removal of existing bridge/creek crossing and rerouting of sidewalk, and
storm and sanitary improvements at Creekside Park.
Project alternates include the following:
• Add Alternate #1: The additional work and cost for providing split face block along the
base of the restroom and open shelter structures as shown on the plans.
• Add Alternate #2: The additional work and cost for providing limestone veneer along
the base of the restroom and open shelter structures as shown on the plans.
• Add Alternate #3: The additional work and cost for providing limestone for creek
access as shown on the plans.
• Add Alternate #4: The additional work and cost for providing site amenities of grills,
benches, bike parking, bike repair station, dog liter receptacle, trash/recycling
receptacles and associated work as shown on the plans.
• Add Alternate #5: The additional work and cost for assembly and installation of the
proposed playground equipment including surfacing and associated work as shown on
the plans.
I r 1 CITY OF IOWA CITY
Th, COUNCIL ACTION REPORT
Background I Analysis:
A master plan was created in 2017 to guide redevelopment of Creekside Park. Creekside
Park is a 5 -acre park located at 1858 7th Avenue Court. The park area has been expanded in
recent years through the acquisition of six residential lots as part of the flood mitigation
program.
Project Timeline:
Set Public Hearing — May 15, 2018
Hold Public Hearing — May 29, 2018
Bid Letting — June 26, 2018
Award Date — July 3, 2018
Construction Start —July 16, 2018
Final Completion — May 31, 2019
ti-
S N Y D E R Creekside Park Master Plan
&ASSOCIATES N
Iowa City, IA June 1, 2017
qe(q)
Prepared by: Brett Zimmerman, Public Works, 410 E. Washington St., Iowa City, IA 52240,(319)356-5044
Resolution No. 18-19-1
Resolution setting a public hearing on May 29, 2018 on plans,
specifications, form of contract, and estimate of cost for the
construction of the Melrose Avenue Fiber Optic Extension,
directing City Clerk to publish notice of said hearing, and
directing the City Engineer to place said plans on file for public
inspection.
Whereas, funds for this project are available in account # S3814.
Now, therefore, be it resolved by the Council of The City of Iowa City, Iowa, that:
1. A public hearing on the plans, specifications, form of contract, and estimate of cost for the
construction of the above-mentioned project is to be held on the 29th day of May, 2018, at
7:00 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 plans, specifications, form of contract, 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 15th day of May 2018
Ma or
p ov y y
Attest:
Ci Clerk City Attorney's Office
It was moved by sotchway and seconded by Taylor the Resolution be
adopted, and upon roll call there were:
Ayes:
Nays: Absent:
X
Botchway
X
Cole
X
Mims
X
Salih
X
Taylor
X
Thomas
X
Throgmorton
I r 1 CITY OF IOWA C
-
r� 5-15-18 .8l �Wffift
COUNCIL ACTION REP=
May 15, 2018
Resolution setting a public hearing on May 29, 2018 on plans, specifications,
form of contract, and estimate of cost for the construction of the Melrose
Avenue Fiber Optic Extension, directing City Clerk to publish notice of said
hearing, and directing the City Engineer to place said plans on file for public
inspection.
Prepared By: Brett Zimmerman - Civil Engineer
Reviewed By: Trent Hansen - PC/Communications Technician
Jason Havel - City Engineer
Ron Knoche - Public Works Director
Ashley Monroe — Assistant City Manager
Fiscal Impact: The estimated cost for this project is $192,000 and will be funded by the
Annual Traffic Signal Projects account #53814
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
This agenda item begins the bidding process for the Melrose Avenue Fiber Optic Extension.
This project includes the installation of three fiber optic ducts beginning east of South Grand
Avenue in Iowa City and ending just west of Emerald Drive in University Heights. Additionally,
the project will include installation of handholes and related hardware.
Background / Analysis:
The existing above ground fiber optic connection that services the City's traffic signals
between Emerald Street and South Grand Avenue requires frequent repairs due to its
exposure to the elements. The City desires to replace the existing aerial fiber optic cable with
a permanent underground connection.
Project Timeline:
Set Public Hearing — May 15, 2018
Hold Public Hearing — May 29, 2018
Bid Letting — June 25, 2018
Award Date — July 3, 2018
Construction Start —July 16, 2018
Final Completion — August 29, 2018
Prepared by: Scott Sovers, Sr. Civil Engineer, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319)3565142
Resolution No. 18-154
Resolution setting a public hearing on May 29, 2018 on plans,
specifications, form of contract, and estimate of cost for the
construction of the Mormon Trek Boulevard Four Lane to Three
Lane Conversion and Lighting Improvements, directing City
Clerk to publish notice of said hearing, and directing the City
Engineer to place said plans on file for public inspection.
Whereas, funds for this project are available in the Mormon Trek Boulevard Three Lane
Conversion account # S3868.
Now, therefore, be it resolved by the Council of the City of Iowa City, Iowa, that:
1. A public hearing on the plans, specifications, form of contract, and estimate of cost for the
construction of the above-mentioned project is to be held on the 29th day of May 2018, at
7:00 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 plans, specifications, form of contract, 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 15th day of rtav 12018
Ma or
Attest:
City Clerk
p ved by
City Attorney's Office
It was moved by Botchwav and seconded by Taylor the Resolution be
adopted, and upon roll call there were:
Ayes:
i7
Nays:
Absent:
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
— CITY O F 1 O WA C I T Y4�-,/e (5\
COUNCIL ACTION REPORT
May 15, 2018
Late Handouts Distributed
Resolution setting a public hearing on May 29, 2018 on plans, Z Isl l -,,
specifications, form of contract, and estimate of cost for the eenstrtletion of
the Mormon Trek Boulevard Four Lane to Three Lane Con4&06n and
Lighting Improvements, directing City Clerk to publish notice of said
hearing, and directing the City Engineer to place said plans on file for
public inspection.
Prepared By: Scott Sovers — Sr. Civil Engineer
Reviewed By: Jason Havel — City Engineer, Ron Knoche — Public Works Director,
Geoff Fruin — City Manager
Fiscal Impact: $1,465,000, available in the Mormon Trek Boulevard Three Lane
Conversion account #S3868.
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
This agenda item begins the bidding process for the Mormon Trek Boulevard Four Lane to
Three Lane Conversion and Lighting Improvements. This project generally includes restriping
the existing pavement to a 3 -lane section (a through lane in either direction with a center two-
way left turn lane) with bike lanes, traffic signal replacement at three intersections on Mormon
Trek (Rohret Rd./Cae Dr., Benton St., Walden Sq./Cameron Way), replacement of non -ADA
compliant sidewalk ramps and the addition of a right turn lane on Mormon Trek Boulevard at
Benton Street. The Project also includes the replacement of the existing roadway lighting on
Mormon Trek Boulevard from Melrose Avenue north to the Iowa Interstate Railroad.
Background / Analysis:
Current research suggests that converting a four -lane roadway to a three -lane roadway
improves vehicle and pedestrian safety, reduces vehicular speeds, improves emergency
response time and allows for on -street bike accommodations within the existing pavement
cross section.
Based on a number of factors, including traffic volumes and collision history, the Mormon Trek
Boulevard corridor was considered a good candidate for a 4 -lane to 3 -lane conversion, and
the City of Iowa City was successful in securing a grant ($500,000) through the Iowa
Department of Transportation Traffic Safety Improvement Program.
The existing light poles on Mormon Trek, from Melrose Avenue north to the Iowa Interstate
Railroad, originally installed in 2001 as a part of the Mormon Trek Improvements Project
(Melrose to the Railroad Viaduct), have deteriorated to the point where they are in need of
replacement. As a part of the light pole replacement, the existing high-pressure sodium
fixtures will be upgraded to a more efficient LED fixtures.
r CITY OF IOWA CITY
COUNCIL ACTION REPORT
The plans, specifications, form of contract, and estimate of cost for construction of the Mormon
Trek Boulevard Four Lane to Three Lane Conversion and Lighting Improvements have been
filed in the Office of the City Clerk for public examination.
The estimated construction cost is $1,465,000, and project construction is expected to begin in
the fall of 2018.
Late Handouts Distributed
(Date)
it 1
�_.:.®oaf
NORr �
CITY OF IOWA CITY
COUNCIL ACTION REPO 4e(5)
May 15, 2018
Resolution setting a public hearing on May 29, 2018 on plan ,
specifications, form of contract, and estimate of cost for th construction of
the ormon Trek Boulevard (Westside Drive to Melrose venue) — Four
Lane t Three Lane Conversion Project, directing City Jerk to publish
notice of id hearing, and directing the City Engine9f to place said plans
on file for public inspection.
Prepared By: Cott Sovers — Sr. Civil Engineer
Reviewed By: son Havel — City Engineer, Ron noche — Public Works Director,
As ey Monroe — Assistant City anager
Fiscal Impact: $1,4 ,000, available in the MWrmon Trek Boulevard Three Lane
Conve 'on account #5386
Recommendations: Staff: Ap roval
Commissio N/A
Attachments: Resolution
Executive Summary:
This agenda item begins tAMelroseAvenue
roc ss for the Mormon Trek Boulevard Four Lane to
Three Lane Conversion anImpro ements. This project generally includes restriping
the existing pavement to aection (a rough lane in either direction with a center two-
way left turn lane) with biktraffic sign replacement at three intersections on Mormon
Trek (Rohret Rd./Cae Dr., t., Walden q./Cameron Way), replacement of non -ADA
compliant sidewalk ramps addition of a r ht turn lane on Mormon Trek Boulevard at
Benton Street. The Projeccludes the repl ement of the existing roadway lighting on
Mormon Trek Boulevard frose Avenue nort to the Iowa Interstate Railroad.
Background !Analysi .
Current research sug sts that converting a four -lane r dway to a three -lane roadway
improves vehicle an pedestrian safety, reduces vehicul speeds, improves emergency
response time and Ilows for on -street bike accommodati s within the existing pavement
cross section.
Based on a nu er of factors, including traffic volumes and c Ilision history, the Mormon Trek
Boulevard cord' or was considered a good candidate for a 4 -la a to 3 -lane conversion, and
the City of Io4 City was successful in securing a grant ($500, 0) through the Iowa
Department Transportation Traffic Safety Improvement Prografn.
The existing light poles on Mormon Trek, from Melrose Avenue no h to the Iowa Interstate
Railroad, originally installed in 2001 as a part of the Mormon Trek I provements Project
(Melrose to the Railroad Viaduct), have deteriorated to the point wh a they are in need of
replacement. As a part of the light pole replacement, the existing hi g -pressure sodium
fixtures will be upgraded to more efficient LED fixtures.
The estimated construction cost is $1,465,000, and project construction fs expected to begin in
the fall of 2018. \
Prepared by: Scott Sovers, Sr. Civil Engineer, Public Works, 410 E. Washington St., Iowa City, IA 52240,(319)356-5142
Resolution No.
Resolution setting a public hearing on May 29, 2018 on plans,
sp cl
ofications, form of contract, and estimate of cost for the
cn truction of the Mormon Trek Boulevard (Westside Drive to
Melro a Avenue) — Four Lane to Three Lane Conversion
Project, directing City Clerk to publish notice of said he Ing, and
directing he City Engineer to place said plans on f' for public
inspection.
Whereas, funds for thi project are available in the Mormo Trek Boulevard Three Lane
Conversion account # S38 .
Now, therefore, be it resolved bathe Council of the City of I*a City, Iowa, that
1. A public hearing on the plarltk,specifications, fo#n of contract, and estimate of cost for the
construction of the above -me ioned project 01c, be held on the 29th day of May 2018, at
7:00 p.m. in the Emma J. Harvat Hall, CoHall, Iowa City, Iowa, or if said meeting is
cancelled, at the next meeting of t e City 3Zouncil thereafter as posted by the City Clerk.
2. The City Clerk is hereby authorized a d directed to publish notice of the public hearing for
the above-named project in a new pa er published at least once weekly and having a
general circulation in the /amed
ss th\public
nor more than twenty (20) days before
said hearing.
3. A copy of the plans, sfntract, and estimate of cost for the
construction of the abovprojeby ordered placed on file by the City
Engineer in the office of trk fopection.
Passed and approved this day of
Attest:
City
2018
Mayor
Appfoved by
City Attorney's Office
It was mov9d by and seconded by
adopted, Od upon roll call there were:
Ayes:
Nays:
Absent:
the Resolution be
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
:i� qo- (5)
Prepared by: Scott Sovers, Sr. Civil Engineer, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319)3565142
Resolution No.
Resolution setting a public hearing on May 29, 2018 on plans,
'specifications, form of contract, and estimate of costf the
construction of the Mormon Trek Boulevard Four Lane Three
Lane Conversion and Lighting Improvements, dir cting City
Clerk to publish notice of said hearing, and dire -t- ng the City
Engineer to place said plans on file for public ins ectiUte Handouts Distributed
Whereas, funds for this project are available in the Mormon Trek Boulevard Three Lane
Conversion account # S3868.
Now, therefore, be it resolved by the Council of the City Of Iowa City, Iowa, Qote)
1. A public hearing on the plans, specifications,/form of contract, and estimate of cost for the
construction of the above-mentioned project is to be held on the 29th day of May 2018, at
7:00 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 Ja newspaperpublished 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 plans specifications, form of contract, 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 day of
i
Attest:
City Clerk
Mayor
2018
p ved by
City Attorney's Office
It was moved by and seconded by
adopted, and upon roll call there were:
Ayes:
Nays:
Absent:
the Resolution be
Botchway
Cole
Mims
Salih
Taylor
Thomas
Throgmorton
52-483
CITY BUDGET AMENDMENT AND CERTIFICATION RESOLUTION - FY 2018 - AMENDMENT #3
To the Auditor of JOHNSON County, Iowa:
The City Council of Iowa City in said County/Counties met on 5/1512018
,at the place and hour set in the notice, a copy of which accompanies this certificate and is certified as to
publication. Upon taking up the proposed amendment, it was considered and taxpayers were heard for and agaIRILLE+l D
the amendment. JOHNSON Co.IOWA
The Council, after hearing all taxpayers wishing to be heard and considering the statements made by them, ga Y R Z�18
final consideration to the proposed amendment(s) to the budget and modifications proposed at the hearing, if a rY
thereupon, the following resolution was introduced.
RESOLUTION No. 18- 155 lj
A RESOLUTION AMENDING THE CURRENT BUDGET FOR THE FISCAL YEAR ENDING JUNE 20GOUNTY AUDITOR
(AS AMENDED LAST ON 3/6/20111 .)
Be it Resolved by the Council of the City of Iowa Ity
Section 1. Following notice published 5/2/2018
and the public hearing held, 5/15/2018 the current budget (as previously amended) is amended as set out
herein and in the detail by fund type and activity that supports this resolution which was considered at that hearing:
Passed this 15th day of
taer�
� Srgnalur� �
City ClerklFinance'' Officer
May, 2018
n rnnrceer) /'
6/^ a
Signature
Mayor
Total Budget
as certified
or last amended
Current
Amendment
Total Budget
after Current
Amendment
Revenues & Other Financing Sources
Taxes Levied on Property
1 -
56,458 399
0
56,458,399
Less: Uncollected Property Taxes -Levy Year
2
0
0
0
Net Current Property Taxes
3
56,458,399
0
56,458,399
Delinquent Properly Taxes
4
0
0
0
TIF Revenues
5
2,454 719
0
2,454,719
Omer City Taxes
6
2,777,889
0
2,777,889
Licenses & Permits
7
1,867,190
0
1,867,190
Use of Money and Property
8
2,340,393
0
2,340,393
Intergovernmental
9
35,316,650
96,500
35,413,150
Charges for Services
10
46,011,372
445,500
46,456,872
Special Assessments
11
1,000
0
1,000
Miscellaneous
12
4,464,043
373,100
4,837,143
Other Financing Sources
13
18,432,722
265,000
18,697,722
Transfers In
14
50,225,065
330,000
50,555,065
Total Revenues and Other Sources
15
220,349,442
1,510,100
221,859,542
Expenditures & Other Financing Uses
Public Safety
16
24,465 070
139,830
24 60 4.90 0
Public works
17
10,081,484
52,132
10,133,616
Health and Social Services
18
300,000
0
300,000
Culture and Recreation
19
14,433,380
-5,768
14,427,612
Community and Economic Development
20
10,780,774
0
10,780,774
General Government
21
9,832,565
-60,364
9,772,201
Debt Service
22
13,564,492
0
13,564,492
Capital Projects
23
77,077,677
485,000
77,562,677
Total Government Activities Expenditures
24
160,535,442
610,830
161,146,272
Business Type l Enterprises
25
86,078,455
420,582
86,499,037
Total Gov Activities & Business Expenditures
26
246,613,897
1,031,412
247,645,309
Transfers Out
27
50,225,065
330,000
50,555,065
Total Expendituresnransfers Out
28
296,838,962
1,361,412
298,200,374
Excess Revenues & Other Sources Over7777777777
(under) ExpenditureslTransfers Out Fiscal Year
29
76,489,520
7777777777
148,688
-76,340,832
Beginning Fund Balance July t
30
211,373,048
0
211,373,048
Ending Fund Balance June 30
31
134,883,528
148,688
135,032,216
Passed this 15th day of
taer�
� Srgnalur� �
City ClerklFinance'' Officer
May, 2018
n rnnrceer) /'
6/^ a
Signature
Mayor
Resolution No. 18-155
Page 2
It was moved by Mims and seconded by Botchway the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
%
Botchway
%
Cole
%
Mims
x
Salih
%
Taylor
%
Thomas
x
Throgmorton
Publication Notice
Iowa City Press Citizen
Tuesday, May 1, 2018
Public Meeting Notice
FY19 Annual Action Plan
The City Council will hold a public meeting, accept comments,
and consider approval of Iowa City's FY19 Annual Action Plan
on May 15, 2018. The meeting will be held at Emma Harvat
Hall, 410 East Washington Street at 7:00 p.m.
The Annual Action Plans are a portion of Iowa City's
Consolidated Plan (a.k.a. CITY STEPS). The Annual Action Plan
includes information on the proposed use of Community
Development Block Grant (CDBG) and HOME Investment
Partnership (HOME) funds for housing, jobs, and services for
low -moderate income persons. The Annual Action Plan
outlines proposed activities and their budgets for the fiscal
year starting July 1, 2018.
Copies are available from the Neighborhood and
Development Services Department, 410 East Washington
Street; the Iowa City Public Library, 123 S. Linn Street; or on
Iowa City's web site (www.icgov.org/actionplan). Additional
information is available by calling 319-356-5230.
Comments may be submitted in writing to the Neighborhood
and Development Services Department at the address above
or by email to Kirk-Lehmann@iowa-city.org. If you require
special accommodations or language translation please
contact Tracy Hightshoe at 356-5230 or 356-5493 TTY at least
seven (7) days prior to the meeting.
C:\Users\jvoparil\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\X0008UC5\Public Comment Notice 5-1 Annual Action
Plan.doc