HomeMy WebLinkAboutA001 - Council Action Form dated April 8, 2025ITEM #:18
DATE:04-08-25
DEPT:PW
SUBJECT:IOWAY CREEK-BROOKSIDE PERFORMANCE AGREEMENT WITH IOWA
DEPARTMENT OF NATURAL RESOURCES
Funding Source:Available Revenue:
19/20 Stormwater Erosion Control (Stormwater
Utility Fund)$432,000
Previous CIP Savings (Stormwater Utility Fund)$736,000
Clean Water State Revolving Fund $337,000
Iowa Finance Authority Water Infrastructure Fund $500,000
Iowa Department of Agriculture and Land
Stewardship $100,000
Anonymous Donation $98,000
Total:$2,203,000
COUNCIL ACTION FORM
BACKGROUND:
The City was awarded State Revolving Funds (SRF) for the 2019/20 Stormwater Erosion Control
Program for the Ioway Creek- Brookside Stream Restoration project in the amount not to exceed
$337,000. The funding loan grant (C1330R) requires a performance agreement (attached) where
the City ensures that the improvements made with the project will be maintained once the project
is complete.
The City plans to relocate the creek away from a failed slope so that the bank can be stabilized. Other
aspects proposed for the project include in-stream features to restore the waterway function and
incorporation of a water quality oxbow to treat storm water runoff from the existing storm sewer.
Maintenance activities following the completion of the project include ensuring the slope remains
adequately protected through inspection and maintenance activities. This work will be monitored
and performed by City staff. This Council action is to approve the requirements of the
performance agreement.
Revenue for this project comes from the following sources:
Iowa Earth Works is currently under contract to perform construction and will commence work this
summer, weather dependent. Substantial completion of the project is anticipated in December 2025.
ALTERNATIVES:
1. Approve the Iowa Department of Natural Resources Performance Agreement for the Ioway
Creek-Brookside Park Sponsored Project.
2. Do not approve the Performance Agreement, and forego the sponsored project funding.
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CITY MANAGER'S RECOMMENDED ACTION:
Approval of this agreement with the Iowa Department of Natural Resources must occur before
moving forward with construction of this project. Delay or rejection of this amendment to the
agreement could result in additional funding being required. Therefore, it is the recommendation of
the City Manager that the City Council adopt Alternative No. 1, as noted above.
ATTACHMENT(S):
Brookside -Ioway Creek -Overall View.pdf
WRR20-012_Ames_IowayCreek_PerformanceAgreement v2.pdf
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IP
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HORIZ.
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PERFORMANCE AGREEMENT Page 1 of 3
WATER RESOURCE RESTORATION SPONSORED PROJECT
PERFORMANCE AGREEMENT
PERFORMANCE AGREEMENT (hereinafter the “Agreement”), entered into between the Iowa Department of Natural
Resources, an agency of the State of Iowa, (hereinafter the “Department”), and
Name:
Address:
Address:
City, State, Zip:
Phone:
E-Mail Address:
Contact Person:
(hereinafter the “Borrower”).
WHEREAS, the Department and the Iowa Finance Authority are jointly designated to administer the Water Pollution
Control Works, also known as the Clean Water State Revolving Fund (CWSRF) pursuant to Iowa Code sections 455B.291
to 455B.299, 16.131 to 16.133A and the federal Water Pollution Control Act (Clean Water Act); and
WHEREAS, pursuant to Iowa Code section 455B.199 the Department has jurisdiction to administer the water resource
restoration sponsored projects program; and
WHEREAS, the water resource restoration sponsored projects program is implemented pursuant to 567 Iowa
Administrative Code chapter 92; and
WHEREAS, the Borrower proposes to construct a Water Resources Restoration Sponsored Project (hereinafter called the
“Project”); and
WHEREAS, the Project includes natural methods of stream channel stabilization for erosion control on a reach of Ioway
Creek located within Brookside Park in Ames, IA; and
WHEREAS, the Borrower shall ensure that the Project is constructed in accordance with the applicable practice design
checklist and the plans and specifications as approved by the Department on January 22, 2025, and the construction
contract documents entered into by the Borrower, and all attached as Attachment A to this Agreement; and
WHEREAS, the Borrower agrees to maintain the Project in accordance with the maintenance plan as reviewed by the
Department and accepted/signed by the Borrower on January 8, 2025, and attached as Attachment B to this Agreement;
and
WHEREAS, the Department shall notify the Iowa Finance Authority that the Borrower is eligible for additional funding of
an amount not to exceed $337,000 for the Project through an amendment to the Borrower’s associated Clean Water
State Revolving Fund loan agreement (C1330R) in the original/estimated amount of $4,071,000, for a total estimated
loan amount of $4,408,000; and
WHEREAS, this Agreement shall be applicable to all loans associated with the Project and will be incorporated by
reference into all loan agreements of loans associated with the Project; and
WHEREAS, any changes to the contract documents and/or maintenance plans referenced above must be submitted to
the Department for review and/or approval,
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PERFORMANCE AGREEMENT Page 2 of 3
NOW, THEREFORE, in consideration of the mutual promises exchanged above and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Department and the Borrower hereto
mutually agree as follows:
I. Default
The Borrower is in default of the Agreement upon the occurrence of one or more of the below conditions which
include the following:
1. Construction of the Project is not completed within the timeframe identified in Attachment A or Department
approved change orders that amend the timeframe identified in Attachment A;
2. The Project is not constructed in accordance with the approved plans and specifications of Attachment A, or
does not meet applicable practice design standard(s) which were the basis for the approved plans and
specifications;
3. The Project is not maintained in accordance with Attachment B;
4. The Project practice(s), which have not met their identified useful life (as identified in Attachment B), no
longer function as originally intended due to lack of maintenance, removal, modification of, or damage to the
Project that was not repaired; or
5. The Project is utilized for a purpose that would make it no longer eligible for SRF Sponsored Project funding
under State or Federal regulations.
II. Actions
In the event that the Borrower is in default of the Agreement as defined above, the Department shall by written
notice inform the Borrower that they are in default with the Agreement; and the Department may take one or more
of the following actions:
1. Grant the Borrower an extension of time to correct deficiencies and/or to complete the Project through the
issuance of a change order as an amendment to Attachment A or other applicable action;
2. Instruct the Borrower to complete work necessary to correct deficiencies of practices not constructed to the
approved plans and specifications in Attachment A and/or any change orders approved by the Department
that amend Attachment A, or that do not meet the applicable practice design standard(s) which were the basis
for the approved plans and specifications;
3. Instruct Iowa Finance Authority to withhold further disbursements related to the Project until actions
necessary to remedy deficiencies have been completed and approved by the Department;
4. Instruct the Borrower to perform the required maintenance identified in Attachment B;
5. Instruct the Borrower to repair any damage to the Project that impairs or prevents the Project practices from
functioning properly; or
6. In the event the actions in items 1-5 would be ineffective given the circumstances of the default, or in the
event the Department took any action detailed in items 1-5 or took any other action under item 7 and the
Borrower failed to remedy the default, instruct the Iowa Finance Authority to increase the interest rate of any
associated Clean Water State Revolving Fund loan agreement(s) such that the entire amount disbursed to the
Borrower for the Project or an amount prorated according to the proportion of remaining years of useful life
to the total years of useful life of the Project practice(s) in default is repaid to the Clean Water State Revolving
Fund; or
7. Take any other action deemed necessary by the Department that will allow the Borrower to remedy the
default and/or allow the Department or the Iowa Finance Authority to recoup previously dispersed funding for
the Project, so long as the action does not increase the SRF funding provided for the Project and is allowed
under law or rule. The Department may only take this action if the actions in items 1-5 would be ineffective
given the circumstances of the default, or in the event the Department took any action detailed in items 1-5
and the Borrower failed to remedy the default.
III. Other
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PERFORMANCE AGREEMENT Page 3 of 3
By signing this Agreement, the Borrower expressly agrees to any amendment of any loan agreement of a loan
associated with the Project that the Iowa Finance Authority deems necessary to fulfill an instruction by the
Department in items 3, 6, and/or 7 of the Actions section of this Agreement. However, this clause shall not be
construed as in any way limiting the right of the Borrower to contest that it is in default of this Agreement.
Nothing in this Agreement shall be construed as limiting the rights, powers, options, or remedies of the Iowa Finance
Authority to collect a debt or take any other action related to a loan agreement for any loan.
IN WITNESS WHEREOF, the parties have caused this Agreement to be signed on their behalf by their duly authorized
officers all as of the Dated Date.
CITY OF AMES
BY: DATE:
IOWA DEPARTMENT OF NATURAL RESOURCES
BY: DATE:
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PERFORMANCE AGREEMENT – Attachment A Page A-1
ATTACHMENT A
This Attachment incorporates by reference the following documents related to the Project:
• Practice(s) design checklist (if applicable)
• Plans and specifications as approved by the Department on January 22, 2025
• The construction contract documents entered into by the Borrower
Due to the size of these documents, they are incorporated by reference but have been omitted as a direct attachment to
this Agreement. These documents were made available to all signatories prior to the finalization of this Agreement. The
documents are available by contacting the Department’s SRF program.
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PERFORMANCE AGREEMENT – Attachment B Page B-1
ATTACHMENT B
This Attachment incorporates by reference the following documents related to the Project:
• Native Seed and Tree Establishment and Maintenance for Brookside Park
Due to the size of the plan, it is incorporated by reference but has been omitted as a direct attachment to this
Agreement. The plan was made available to all signatories prior to the finalization of this Agreement. The plan is
available by contacting the Department’s SRF program.
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