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Additional Proceedings_General Obligation Bonds $475KMasterpiece on the Mississippi Dubuque bierd All-America City 1 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed $475,000 General Obligation Bonds DATE: April 30, 2012 Budget Director Jennifer Larson is recommending City Council approval of the suggested proceedings for the public hearing on the issuance of General Obligation Bonds prepared by Bond Counsel and to present a resolution for City Council to adopt entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $475,000 General Obligation Bonds." The proceeds of the Bonds will be used for general corporate purposes of the City, including those costs associated with repairs needed as part of the original Library Renovation in 2010 which include repainting the mezzanine and rotunda ceiling and costs of equipment and installation of a comprehensive video surveillance system in the Locust Street Ramp that is compatible with current systems to enhance the safety of employees and customers. Although the City is selling General Obligation Bonds to support the project, repayments of the debt will be from local option sales tax and parking fees. The borrowing is subject to the "reverse referendum" procedures, under which petitions may be filed prior to the hearing asking that the bond proposal be submitted to an election. The proceedings have been prepared on the basis that no objections or petitions calling for an election on the bond proposal will be filed with the City Clerk. In the event the Council decides to abandon the proposal to issue said bonds, then the form of resolution included in said proceeding should not be adopted. In this event, a motion needs to be adopted to the effect that such bond proposal is abandoned. Section 384.25 of the Code of Iowa provides that any resident or property owner of the City may appeal the decision to take additional action to issue the bonds, to the District Court of a county in which any part of the City is located, within 15 days after such additional action is taken, but that the additional action is final and conclusive unless the court finds that the Council exceeded its authority. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Jenny Larson, Budget Director Masterpiece on the Mississippi Dubuque bierd All-America City 1 2007 TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed $475,000 General Obligation Bonds DATE: April 30, 2012 INTRODUCTION The purpose of this memorandum is to provide the suggested proceedings for the public hearing on the issuance of General Obligation Bonds prepared by our Bond Counsel and to present a resolution for City Council to adopt entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $475,000 General Obligation Bonds." The proceeds of the Bonds will be used for general corporate purposes of the City. A letter from attorney Mark Cory detailing information on the bond hearing is enclosed. DISCUSSION Of the bond amount: • $70,000 is intended to provide funds to pay costs of repairs needed as part of the original Library Renovation in 2010 which include repainting the mezzanine and rotunda ceiling. • $175,000 is intended to provide funds to pay costs of equipment and installation of a comprehensive video surveillance system in the Locust Street Ramp that is compatible with current systems to enhance the safety of employees and customers. • $3,800 is intended to provide funds for bond issuance costs and • $226,200 to be a contingency for fluctuations in the bond market for interest rates, bond issuance costs and change in project costs. The borrowing is subject to the "reverse referendum" procedures, under which petitions may be filed prior to the hearing asking that the bond proposal be submitted to an election. The proceedings have been prepared on the basis that no objections or petitions calling for an election on the bond proposal will be filed with the City Clerk. If there are objections, we will need to summarize them. The Mayor will then declare the hearing on the issuance of said bonds closed. Immediately following, and assuming no petitions have been filed, a resolution is to be introduced and adopted entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $475,000 General Obligation Bonds." In the event the Council decides to abandon the proposal to issue said bonds, then the form of resolution included in said proceeding should not be adopted. In this event, a motion needs to be adopted to the effect that such bond proposal is abandoned. Section 384.25 of the Code of Iowa provides that any resident or property owner of the City may appeal the decision to take additional action to issue the bonds, to the District Court of a county in which any part of the City is located, within 15 days after such additional action is taken, but that the additional action is final and conclusive unless the court finds that the Council exceeded its authority. RECOMMENDATION I respectfully recommend the adoption of the enclosed resolution instituting the proceedings to take additional action. JML Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Kenneth TeKippe, Finance Director fl (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Dubuque, Iowa. Date of Meeting: May 7, 2012. Time of Meeting: 6:30 o'clock P.M. Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for the meeting is as follows: Not to exceed $475,000 General Obligation Bonds • Public hearing on the issuance. • Resolution instituting proceedings to take additional action. Such additional matters as are set forth on the additional 4 page(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of the governmental body. A%p `A∎ City Clerk, City of I ubuquee, Iowa May 7, 2012 The City Council of the City of Dubuque, Iowa, met in regular session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date. There were present Mayor Roy D. Buol in the chair, and the following named Council Members: Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch David Resnick, Lynn Sutton Absent: 1 The Mayor announced that this was the time for meeting on the matter of the issuance of not to exceed $475,000 of General Obligation Bonds in order to provide funds to pay costs of the acquisition and installation of security cameras in the Locust Ramp, and Library repairs and improvements; general corporate purposes; and that notice of the proposal to issue the bonds and the right to petition for an election had been published as provided by Section 384.26, of the City Code of Iowa; and, the Mayor then asked the City Clerk whether any petition had been filed in the Clerk's Office, in the manner provided by Section 362.4 of the City Code of Iowa, and the Clerk reported that no such petition had been filed, requesting that the question of issuing the bonds be submitted to the qualified electors of the City. The Mayor then asked the Clerk whether any written objections had been filed by any City resident or property owner to the issuance of the Bonds. The Clerk advised the Mayor and the Council that no written objections had been filed. The Mayor then called for oral objections to the issuance of the Bonds and none were made. Whereupon, the Mayor declared the time for receiving oral and written objections to be closed. (Attach here a summary of objections received or made, if any) 2 Whereupon, Council Member Connors introduced and delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION AND ISSUANCE OF NOT TO EXCEED $475,000 GENERAL OBLIGATION BONDS ", and moved: Er that the Resolution be adopted. to ADJOURN and defer action on the Resolution and the proposal to institute proceedings for the issuance of bonds to the meeting to be held at o'clock .M. on the day of 2012, at this place. Council Member Braig seconded the motion. The roll was called and the vote was, AYES: Resnick, Sutton, Braig, Buol, Connors, Jones, Lynch NAYS: Whereupon, the Mayor declared the measure duly adopted. RESOLUTION NO. 119 -12 RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION AND ISSUANCE OF NOT TO EXCEED $475,000 GENERAL OBLIGATION BONDS WHEREAS, pursuant to notice published as required by law, the City Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of not to exceed $475,000 General Obligation Bonds, for general corporate purposes, in order to provide funds to pay costs of the acquisition and installation of security cameras in the Locust Ramp, and Library repairs and improvements, and no petition was filed calling for a referendum thereon. The following action is now considered to be in the best interests of the City and residents thereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: 3 Section 1. That this Council does hereby institute proceedings and take additional action for the authorization and issuance in the manner required by law of not to exceed $475,000 General Obligation Bonds for the foregoing general corporate purposes. PASSED AND APPROVED this 7th day of May 2012. ATTEST: 4 STATE OF IOWA COUNTY OF DUBUQUE CERTIFICATE ) SS I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City 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 (a copy of the face sheet of the agenda being attached hereto) 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 City hereto affixed this 8th day of May 2012. (SEAL) 00859347 -1 \10422 -134 City C er c, City of Du suque, "fie of Iowa AHLERS R. Mark Cory rcory@ahlerslaw.com Mr. Kevin Firnstahl City Clerk City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 -4864 COONEY, P.C. 100 COURT AVENUE, SUITE 600 DES MOINES, IOWA 50309 -2231 PHONE 515 -243 -7611 FAX: 515-243-2149 WWW.AHLERSLAW.COM April 25, 2012 RE: FY13 General Obligation Bond Proposals Dear Mr. Firnstahl: Direct Dial: (515)246 -0378 With this letter I am enclosing suggested proceedings to be acted upon by the City Council on the date fixed for the hearings on the proposed issuance of General Obligation Bonds to accomplish the financing of projects included within the capital improvements program budget for the FY2013. It is my understanding that the hearings on the general obligation bond proposals have been scheduled for the Council's meeting on May 7, 2012. Two (2) of the hearings relate to proposals to issue general obligation bonds for "essential corporate purpose" projects, while three (3) other hearings relate to "general corporate purpose" projects. As you know, however, one of the "essential corporate purpose" proposals involves urban renewal activities and therefore is subject to the same "reverse referendum" procedures applicable to the "general corporate purpose" projects. For the sake of clarity, I will distinguish between each of these proposals and describe the related proceedings according to the procedures involved: WISHARD & BAILY- 1888; GUERNSEY & BAILY - 1893: BAILY & STIPP - 1901: STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER, AHLERS & COONEY - 1950: AHLERS. COONEY, DORWEILER, ALLBEE. HAYNIE & SMITH - 1974: AHLERS, COONEY. DORWEILER, HAYNIE. SMITH & ALLBEE, P.C. - 1990 April 25, 2012 Page 2 Not to exceed $8,650,000 General Obligation Bonds (Misc. Essential Corporate Purpose Projects) The proceedings are prepared to show as a first step the receipt of any oral or written objections from any resident or property owner to the proposed action of the Council to issue the bonds. A summary of objections received or made, if any, should be attached to the proceedings. After all objections have been received and considered if the Council decides not to abandon the proposal to issue the bonds, a form of resolution follows that should be introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional Action." The Council is required by statute to adopt the resolution instituting proceedings to issue the bonds at the hearing -- or an adjournment thereof. If necessary to adjourn, the minutes are written to accommodate that action. In the event the Council decides to abandon the proposal to issue said bonds, then the form of resolution included in said proceedings should not be adopted. We would suggest that, in this event, a motion merely be adopted to the effect that such bond proposal is abandoned. Section 284.25 of the Code of Iowa, provides that any resident or property owner of the City may appeal the decision to take additional action to issue the bonds, to the District Court of a county in which any part of the city is located, within 15 days after such additional action is taken, but that the additional action is final and conclusive unless the court finds that the Council exceeded its authority. In the event an appeal is filed by any resident or property owner, please see that we are notified immediately; and, as soon as available, a copy of the notice of appeal should be furnished our office for review. April 25, 2012 Page 3 Not to exceed $5,575,000 General Obligation Bonds - (Urban Renewal Projects) Not to exceed $700,000 General Obligation Bonds (General Corporate Purposes) Not to exceed $475,000 General Obligation Bonds (General Corporate Purposes) Not to exceed $600,000 General Obligation Bonds (General Corporate Purposes) The above proposals are subject to the "reverse referendum" procedures, under which petitions may be filed prior to the hearing asking that the particular bond proposal be submitted to an election. In each case, the proceedings assume that no petition has been received calling for an election on the proposed action of the Council to issue bonds for the purposes described. At the hearing, the Council should receive any oral or written objections to the proposal under consideration. If no petition has been filed with respect to the proposal, and the Council decides not to abandon the proposal to issue bonds for the purposes described, the Council then should proceed to institute proceedings to take additional action for the issuance of the bonds under consideration. In the event the Council decides to abandon the proposal to issue certain of the bonds, then the applicable resolution should not be adopted. We would suggest that, in this event, a motion merely be adopted to the effect that the bond proposal is abandoned. If a petition has been received with respect to a particular proposal and if the Council decides not to abandon the proposal to issue said bonds for that purpose, a form of resolution should be introduced and adopted to adjourn the matter to permit preparation of the resolution to call an election. Please see that we are advised immediately if a petition is filed bearing signatures of a sufficient number of eligible electors. April 25, 2012 Page 4 An extra copy of the proceedings is enclosed to be completed as the original and returned to us for our transcript of the action taken. If you have any questions pertaining to the proceedings enclosed or this letter, please do not hesitate to either write or call. RMC:dc encl. cc: Jenny Larson (w /encl.) Tionna Pooler (w /encl.) Ken TeKippe (w /encl.) 00859352 -1 \10422 -134 NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $475,000, PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS (FOR GENERAL CORPORATE PURPOSES), AND HEARING ON ISSUANCE OF SAID BONDS Public Notice is hereby given that the Council of the City of Dubuque, Iowa, will hold a public hearing on the 7th day of May, 2012, at 6:30 o'clock P.M., in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at which meeting the Council proposes to take action for the issuance of not to exceed $475,000 of General Obligation Bonds, bearing interest at the rate of not to exceed nine percent (9%) per annum, said bonds to be issued for the purpose of providing funds to pay costs of the acquisition and installation of security cameras in the Locust Ramp, and Library, repairs and improvements. At any time before the date of said meeting, a petition, asking that the question of issuing such bonds be submitted to the legal voters of said City, may be filed with the Clerk of said City in the manner provided by Section 362.4 of the City. Code of Iowa, pursuant to the provisions of Section 384.26(5) of the City Code of Iowa. This Notice is given by order of the Council of the City of Dubuque, Iowa, as provided by Section 384.26(5) of the City Code of Iowa. Any visual or hearing impaired persons need- ing special assistance or persons with special accessibility needs should contact the City Clerk's Office at (563) 589 -4120 or TTY (563) 690 -6678 at least 48 hours prior to the meeting. Dated this 20th day of April, 2012. Kevin S. Firnstahl City Clerk, City of Dubuque, Iowa It 4/20 STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: April 20, 2012, and for which the charge is $23.74. Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this day of / , 20 /L . otary Public in and for Dubuque County, Iowa.