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General Obligation Bonds_Advertisement for SaleTO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proceedings to Direct Advertisement for Sale and Approve Electronic Bidding Procedures for $3,885,000 General Obligation Stormwater Bonds, Series 2008A, $3,290,000 General Obligation Urban Renewal Bonds, Series 20086 and $2,465,000 General Obligation Urban Renewal Bonds, Taxable Series 2008C DATE: September 8, 2008 Finance Director Ken TeKippe recommends advertisement for the sale of $3,885,000 General Obligation Stormwater Bonds, Series 2008A, $3,290,000 General Obligation Urban Renewal Bonds, Series 20086 and $2,465,000 General Obligation Urban Renewal Bonds, Taxable Series 2008C and approve electronic bidding procedures and the form of notice of sale. The Series 2008A bonds will provide funds to pay costs of construction of stormwater management facilities and improvements, including those costs associated with the acquisition of properties for the Bee Branch Creek Restoration Project, which was included in the adopted FY'09 CIP budget. The repayment of the debt will be from stormwater utility fees. The Series 20086 bonds will provide funds to pay costs of the Library Renovation Project and building renovations and improvements to the former Kephart's Building, which was included in the adopted FY'09 CIP budget ($2,835,000. The repayment of the debt will be tax increment revenues of the Greater Downtown Urban Renewal District. In addition, $455,000 of non-taxable bonds for the North Siegert Farm demolition and grading project are included Series 20086 bonds. The Series 2008C bonds will provide funds to pay costs of the North Siegert Farm demolition and grading project. The repayment of the debt will be from tax increment revenues of the Dubuque Industrial Center West Economic Development District. The bond sale will be held on October 6, 2008. I concur with the recommendation and respectfully request Mayor and City Council approval. ~' r ~ ~ ._ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Kenneth J. TeKippe, Finance Director THE CITY OF ~ i ~~ ~~~;~ ~ ~ ~ ~ ii I~ I~ ~ I ~ ,1 ~ ~ ~~~ - ~ -- - ~~ ~ ~~ TO: Michael C. Van Milligen, City Manager s FROM: Kenneth J. TeKippe, Finance Director ~~ ~' Ems!-/' ~~`~ ~~' SUEJECT: Proceedings to Direct Advertisement for Sale and Approve Electronic Bidding Procedures for $3,885,000 General Obligation Stormwater Bonds, Series 2008A, $3,290,000 General Obligation Urban Renewal Bonds, Series 20086 and $2,465,000 General Obligation Urban Renewal Bonds, Taxable Series 2008C DATE: September 8, 2008 The purpose of this memorandum is to recommend the advertisement for the sale of the $3,885,000 General Obligation Stormwater Bonds, Series 2008A, $3,290,000 General Obligation Urban Renewal Bonds, Series 20088 and $2,465,000 General Obligation Urban Renewal Bonds, Taxable Series 2008C and approve electronic bidding procedures and the form of notice of sale. The Series 2008A bonds will provide funds to pay costs of construction of stormwater management facilities and improvements, including those costs associated with the acquisition of properties for the Bee Branch Creek Restoration Project which was included in the adopted FY'09 CIP budget. The repayment of the debt will be from stormwater utility fees. The Series 20086 bonds will provide funds to pay costs of the Library Renovation Project and building renovations and improvements to the former Kephart's Building which was included in the adopted FY'09 CIP budget ($2,835,000). The repayment of the debt will be tax increment revenues of the Greater Downtown Urban Renewal District. In addition, $455,000 of non-taxable bonds for the North Siegert Farm demolition and grading project are included Series 20088 bonds. The Series 2008C bonds will provide funds to pay costs of the North Siegert Farm demolition and grading project. The repayment of the debt will be from tax increment revenues of the Dubuque Industrial Center West Economic Development District. The bond sale will be held on October 6, 2008. A letter from attorney William Noth detailing information on the bond advertisement is enclosed. The requested action step for City Council is to adopt the attached resolution to cover the advertisement for sale of the above bonds. KJT/jmg Enclosures cc: Barry Lindahl, City Attorney Jenny Larson, Budget Director Jeanne Schneider, City Clerk AHL,ERS -- GOONEY, P.G. 100 COURT AVENUE, SUITE 600 DES MOINES, IOWA 50309-2231 PH 0 N E: 515-243-7611 FAX:515-243-2149 WWW.AHLERSLAW.COM WILLIAM J. NOTH wnoth@ahlerslaw.com September 5, 2008 Mr. Ken TeKippe Finance Officer City of Dubuque 50 West 13th Street Dubuque, Iowa 52001-4864 Direct Dial: (515)246-0332 RE: $3,885,000 General Obligation Stormwater Bonds, Series 2008A $3,290,000 General Obligation Urban Renewal Bonds, Series 2008B $2,465,000 General Obligation Urban Renewal Bonds, Taxable Series 2008C Dear Mr. TeKippe: With this letter I am enclosing suggested proceedings to direct the advertisement of the above Bonds for sale, and to approve the form of Notice of Bond Sale. Under the schedule proposed, these proceedings should be considered immediately following the public hearings and adoption of the three (3) resolutions taking additional action. The Notice of Bond Sale assumes that the sale will be set for 11:00 A.M. on October 6, 2008. The Notice also assumes that the Council will meet at 6:30 P.M. on October 6, 2008 to award the Bonds to the best bidders. If any of those details need to be revised, please let me know. The procedure assumes that your financial consultant has recommended to the Council that electronic bidding procedures be utilized for this bond sale. Based upon this recommendation, the Iowa Code requires that the Council make a finding that the recommended procedure will provide reasonable security .and maintain the integrity'of the competitive bidding process and facilitate. the delivery of bids by interested parties under the circumstances of the particular sale. The proceedings enclosed are prepared on the basis that the Council will agree with the recoinlnendation and inalce the necessary findings. WISHARO & GAILY - 1888: GUERNSEY & GAILY - 1893: GAILY 8 STIPP ^-1901 ;STIPP, PERRY. BANNISTER & STARZINGER - 1914; BANNISTER. CARPENTER. AHLE'RS & CUONEY - 1950: AHLERS, GOONEY, DORWEILER, ALLBEE, HAYNIE & SMITH - 1974: AHLERS, GOONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. - 1990 September 5,.2008 Page 2 The Notice of Bond Sale must be published at least one time. The sale may be held at any time, but not less than four days following the date of the last publication. An extra copy of the notice is enclosed for use by the newspaper. As always, extra copies of the proceedings are enclosed to be filled in as the originals and certified back to this office, together with publisher's affidavit covering publication of the Notice of Bond Sale. If any questions arise, please keep me advised. Very truly yours, I`` William J. Noth WJN:dc encl. cc: Michael Maloney (w/encl.) Jenny Larson (w/encl.) DCORNELU 590796.1 /MSWord\10422.084 (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of Dubuque, Iowa. Date of Meeting: September 15, 2008. 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 said meeting is as follows: $3,885,000 General Obligation Stormwater Bonds, Series 2008A $3,290,000 General Obligation Urban Renewal Bonds, Series 20088 $2,465,000 General Obligation Urban Renewal Bonds, Taxable Series 2008C X Resolution directing the advertisement of Bonds for sale and approving electronic bidding procedures Such additional matters as are set forth on the additional 13 page(s) attached hereto. This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of said governmental body. '.: ity Clerk, Dubuque, Iowa -1- Council Member Jones introduced the following Resolution entitled "RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF GENERAL OBLIGATION STORMWATER BONDS, SERIES 2008A, GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 20086, AND GENERAL OBLIGATION URBAN RENEWAL BONDS, TAXABLE SERIES 2008C, IN THE AGGREGATE PRINCIPAL AMOUNT OF $9,640,000 AND APPROVING ELECTRONIC BIDDING PROCEDURES" and moved its adoption. Council Member Braig seconded the Resolution to adopt. The roll was called and the vote was, AYES: Jones, lynch, Resnick, Braig, Connors NAYS: Nones Whereupon, the Mayor Pro-Tem declared the resolution duly adopted as follows: RESOLUTION 337-08 RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF GENERAL OBLIGATION STORMWATER BONDS, SERIES 2008A, GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 20088, AND GENERAL OBLIGATION URBAN RENEWAL BONDS, TAXABLE SERIES 2008C, IN THE AGGREGATE PRINCIPAL AMOUNT OF $9,640,000 AND APPROVING ELECTRONIC BIDDING PROCEDURES WHEREAS, the City of Dubuque, Iowa (the "City") is in need of funds to pay costs of the construction of stormwater management facilities and improvements, including those costs associated with the acquisition of properties for the Bee Branch Creek Restoration Project, an essential corporate purpose project, and it is deemed necessary and advisable that the City issue general obligation stormwater bonds for said purpose in the amount of not to exceed $4,000,000 as authorized by Section 384.25 of the City Code of Iowa; and WHEREAS, pursuant to notice published as required by Section 384.25 this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of the above described Bonds, and all objections, if any, to such Council action made by any resident or property owner of said City were received and considered by the Council; and it is the decision of the Council that additional action be taken for the issuance of said Bonds, and that such action is considered to be in the best interests of said City and the residents thereof; and WHEREAS, the City also is in need of funds to pay costs of aiding in the planning, undertaking and carrying out of urban renewal project activities under the authority of Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District, including those costs -3- associated with the Library Renovation Project and building renovations and improvements to the former Kephart's Building, and it is deemed necessary and advisable that the City issue general obligation urban renewal bonds for said purpose to the amount of not to exceed $3,000,000 as authorized by Sections 403.12 and 384.24(3)(q) of the Code of Iowa; and WHEREAS, pursuant to notice published as required by Sections 403.12 and 384.24(3)(q) this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of the above described Bonds, and no petitions were filed calling for an election thereon and all objections, if any, to such Council action made by any resident or property owner of said City were received and considered by the Council; and it is the decision of the Council that additional action be taken for the issuance of said Bonds, and that such action is considered to be in the best interests of said City and the residents thereof; and WHEREAS, the City also is in need of funds to pay costs of aiding in the planning, undertaking and carrying out of urban renewal project activities under the authority of Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plan for the Dubuque Industrial Center West Economic Development District, including those costs associated with the North Siegert Farm demolition and grading project, and it is deemed necessary and advisable that the City issue general obligation urban renewal bonds for said purpose to the amount of not to exceed $3,100,000 as authorized by Sections 403.12 and 384.24(3)(q) of the Code of Iowa; and WHEREAS, pursuant to notice published as required by Sections 403.12 and 384.24(3)(q) this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of the above described Bonds, and no petitions were filed calling for an election thereon and all objections, if any, to such Council action made by any resident or property owner of said City were received and considered by the Council; and it is the decision of the Council that additional action be taken for the issuance of said Bonds, and that such action is considered to be in the best interests of said City and the residents thereof; and WHEREAS, pursuant to Section 384.28 of the Code of Iowa, it is appropriate to offer the foregoing Bonds for sale in three separate series, in the aggregate principal amounts as hereinafter described; and WHEREAS, the Council has received information from its Financial Consultant recommending that sealed and electronic facsimile and Internet bidding be authorized for the sale of the Bonds, and that such procedures will maintain the integrity and security of the competitive bidding process and facilitate the delivery of bids by interested parties; and -4- WHEREAS, the Council deems it in the best interests of the City and the residents thereof to receive bids to purchase such Bonds by means of sealed and electronic facsimile and Internet communication. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the receipt of electronic bids by facsimile machine and through the PARITY© competitive bidding system described in the Notice of Sale are hereby found. and determined to provide reasonable security and to maintain the integrity of the competitive bidding process, and to facilitate the delivery of bids by interested parties in connection with the offering of the Bonds hereinafter described at public sale. Section 2. That the City Clerk be and is hereby authorized and directed to publish notice of sale of said Bonds at least once, the last one of which shall be not less than four clear days nor more than twenty days before the date of the sale. Publication shall be made in the Telegraph Herald, a legal newspaper, printed wholly in the English language, published within the county in which the Bonds are to be offered for sale or an adjacent county. Said notice is given pursuant to Chapter 75 of the Code of Iowa, and shall state that this Council, on the 6th day of October, 2008, at 6:30 o'clock P.M., will hold a meeting to receive and act upon bids for said Bonds; said notice to be in substantially the following form: -5- NOTICE OF BOND SALE Time and Place of Sealed Bids: Sealed bids for the sale of Bonds of the City of Dubuque, Iowa, will be received at the office of the Finance Director, City Hall, 50 West 13th Street, in the City of Dubuque, Iowa (the "Issuer") at 11:00 o'clock A.M., on the 6th day of October, 2008. The bids will then be publicly opened and referred for action to the meeting of the City Council in conformity with the terms of offering. Sale and Award: The sale and award of the Bonds will be held at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at a meeting of the City Council on the above date at 6:30 o'clock P.M. The Bonds: The Bonds to be offered are the following: GENERAL OBLIGATION STORMWATER BONDS, SERIES 2008A, in the amount of $3,885,000, to be dated the date of delivery. GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 20086, in the amount of $3,290,000, to be dated the date of delivery. GENERAL OBLIGATION URBAN RENEWAL BONDS, TAXABLE SERIES 2008C, in the amount of $2,465,000, to be dated the date of delivery. (together, the "Bonds") Manner of Bidding: Open bids will not be received. Bids for each series of the Bonds will be received by any of the following methods: Sealed Bidding: Sealed bids may be submitted and will be received at the office of the Finance Director, Dubuque, Iowa Electronic Internet Bidding: Electronic internet bids will be received at the office of the Finance Director, Dubuque, Iowa. The bids must be submitted through the PARITY' competitive bidding system. Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the Finance Director, Dubuque, Iowa (facsimile number: 563/589-0890). Electronic facsimile bids will be sealed and treated as sealed bids. Consideration of Bids: After the time for receipt of bids has passed, the close of sealed bids will be announced. Sealed bids will then be publicly opened and announced. Finally, electronic internet bids will be accessed and announced. Official Statement: The Issuer has issued an Official Statement of information pertaining to the Bonds to be offered, including a statement of the Terms of Offering and an Official Bid Form for each series, which is incorporated by reference as a part of this notice. The Official Statement may be obtained by request addressed to the City Clerk, 50 W. 13th Street, Dubuque,- Iowa 52001 (telephone: 563/589-4100) or the financial advisor to the City, Public Financial Management, Inc., 2600 Grand Avenue, Suite 214, Des Moines, Iowa 50312 (telephone: 515/243-2600). Terms of Offering: All bids shall be in conformity with and the sale shall be in accord with the Terms of Offering as set forth in the Official Statement. Legal Opinion: Said Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C., Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except to the extent necessary to issue their opinion as to the legality of the Bonds, the attorneys will not examine or review or express any opinion with respect to the accuracy or completeness of documents, materials or statements made or furnished in connection with the sale, issuance or marketing of the Bonds. Rights Reserved: The right is reserved to reject any or all bids, and to waive any irregularities as deemed to be in the best interests of the public. By order of the City Council of the City of Dubuque, Iowa. Jeanne F. Schneider, CMC City Clerk 1 t 9/19 PASSED AND APPROVED this 15t" day of September, 2008. .~ Kevin J.` Lynch Mayor Pro-Tem ATTEST: Jerk _g_ CIG-3 CERTIFICATE STATE OF IOWA ) SS COUNTY OF DUBUQUE ) I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council, and the same is a true and complete copy of the action taken by said Council with respect to said 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 said 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 said 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 said 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 said Municipality hereto affixed this 16t" day of September, 2008. ,~ ~ .~'~ ty Clerk, Dubuque, Iowa SEAL DCORNELL/ 590785.1 /MSWord\10422.084 -9-