Sewer Revenue Capital Loan Notes_WPC Plant RenovationTHE CTTY OF Dubuque
....
DUB E AII-ameticaCilll
i
Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$3,500,000 Sewer Revenue Capital Loan Notes
DATE: January 26, 2009
Finance Director Ken TeKippe recommends that a public hearing be set for
February 16, 2009, on the proposition of issuing not to exceed $3,500,000 in Sewer
Revenue Capital Loan Notes for the engineering and design work for the Water
Pollution Control Plant improvements.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mich el C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
THE CITY OF Dubuque
~~~ A!I-America City
~~A~ I
Masterpiece an the Mississippi ','11I ~, ~
i.
N ~
)
' N
,
d~7
2~~/
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J TeKippe, Finance Director (~t^~'t""~ ' ~ ~
SUBJECT: Proceedings to Set Public Hearing on the Issuance of not to exceed
$3,500,000 Sewer Revenue Capital Loan Notes
DATE: January 20, 2009
The purpose of this memorandum is to recommend the setting of a public hearing on
the authorization of a loan and disbursement agreement and the issuance of not to
exceed $3,500,000 Sewer Revenue Capital Loan Notes (interim financing) from the
Iowa Water Pollution Control Works Financing Program. The hearing called by the
enclosed proceedings will permit the City to take advantage of the 0% interest interim
loan program, which may be rolled into the future long-term SRF loan.
The loan funds will be used for engineering and design work for the Water Pollution
Control Plant improvements.
The requested action step for City Council is to adopt the attached resolution fixing the
date of February 16, 2009 for a public hearing on the proposition of issuing not to
exceed $3,500,000 in Sewer Revenue Capital Loan Notes of Dubuque, Iowa and
providing for publication of notice. A letter from attorney William Noth detailing
information on the bond hearing is enclosed.
KJT/jmg
Enclosures
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Jeanne Schneider, City Clerk
AHL.ERS COON~Y, P.C.
ATTDRNEYS AT LAW
100 CDURT AVENUE • SUITE 60D
DES MOINES. IOWA 50309-2231
PHONE 515-243-7611
FAX: 515-243-2149
WWW.AHLERSLAW.COM
WILLIAM J. NOTH Direct Dial:
WNDTH~AHLERSLAW.COM (5151246-0332
January 19, 2009
1VIr. Ken TeKippe
Finance Officer
City ofDubuque
SO West 13th Street
Dubuque, Iowa 52001-4864
RE: Not to exceed $3,500,000 Sewer Revenue Capital Loan Notes
(Interim financing)
(State of Iowa Revolving Fund Loan)
Dear 1VLr. TeKippe:
We have now prepared and are enclosing herewith suggested proceedings to be
acted upon by the Council in fixing the date of a meeting on the proposition to issue the
above mentioned Capital Loan Notes and ordering publication of a notice of hearing
consistent with the provisions of Code Sections 384.24A and 384.82.
We understand the City has qualified fora 0% interim planning and design loan
from the Iowa Water Pollution Control Works Financing Program (the "SRF program") to
be applied to the engineering and planning for certain projects. Following design of your
project, additional hearing(s) will be necessary to obtain borrowing authority over and
above the amount covered herein. The hearing called by the enclosed proceedings will
permit the City to take advantage of the 0% interim loan program, which may be rolled
into the future long-term SRF loan:.
As you know, the borrowing of loan funds by the City through the SRF program
involves the same procedures applicable to the issuance and sale of municipal bonds
generally. Although the Iowa Finance Authority (the "Authority") has agreed to make the
Ciiy a loan under the terms of a Loan and Disbursement Agreement, that loan will be
secured and evidenced by a Sewer Revenue Capital Loan Note that will be issued to the
Authority at the time the loan is closed.
WISHARO Be BA1LY - 7888; GUERNSEY $ BAR.Y - 1893; GAILY 8 S71PP - 19D1; STIAP, PERRY, BAN?l151ER B. STARaNGER -1914; BANNISTER, CARPENTER
AHLERS $ GOONEY - 1958; ANLERS, GOONEY. DatwEILER, ALLREE, HAYNiE 8 SNRN - 197b: AHLERS. COON£Y, DatwEKER. HAYNIE, SHTTH & ALLBEE. P.C. - 1990
January 19, 2009
Page 2
Notice of this meeting must be published at least once in a legal newspaper,
printed wholly in the English language, published at least once weekly, and having
general circulation in the City. The date of publication is to be not less than four clear
days nor more than twenty dates before the date of said public meeting. In computing
time, the date of publication should be excluded. Ifthe last day falls on Sunday, the
whole of the following Monday should he excluded.
Please keep us advised of the schedule so we can provide the necessary
proceedings to complete this loan.
Also enclosed is an extra copy of the proceedings to be frlled in as the original and
certified back to this office, together with publisher's affidavit of publication of notice of
hearing. We are also enclosing an extra copy of the notice of hearing to be delivered to
the newspaper for publication purposes. A certificate to attest the proceedings is also
enclosed.
We will prepare and send to you proceedings for the hearing and for approving this
interim loan. Should you have any questions concerning the enclosed proceedings or the
S1ZF Program, please don't hesitate to contact me.
Yours very truly,
William J. Noth
WJIV:do
encl.
cc: Jenny Larson (wJencl.)
DCORNELL1604026. ! 1WP110422.000
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
Date of Meeting:
Time of Meeting
Place of Meeting
PUBLIC NOTICE I~
body will meet at the date,
meeting is as follows:
The City Council of Dubuque, Iowa.
February 2, 2009
6:30 o'clock P.M.
Historic Federal Building, 350 West 6th Street, Dubuque,
Iowa.
HEREBY GIVEN that the above mentioned governmental
time and place above set out. The tentative agenda for said
Not to exceed $3,500,000 Sewer Revenue Capital Loan Notes
Resolution fixing date for a meeting on the proposition to authorize a Loan
and Disbursement Agreement and the issuance of Notes to evidence the
obligations of the City thereunder.
Such additional matters as are set forth on the additional 8 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
February 3, 2009
The City Council 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 City Council Members:
Present: Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch, David Resnick,
Dirk Voetberg
Absent: None
-2-
Council Member Kevin Lynch introduced the following Resolution entitled
"RESOLUTION FIXING DATE FOR A MEETING ON THE AUTHORIZATION OF A
LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $3,500,000 SEWER REVENUE CAPITAL LOAN NOTES OF DUBUQUE,
IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF", and moved
that the same be adopted. Council Member Jones seconded the motion to adopt. The
roll was called and the vote was,
AYES: Braig, Buol, Connors, Jones, Lynch, Resnick, Voetberg
NAYS: None
Whereupon, the Mayor declared the Resolution duly adopted as follows:
RESOLUTION NO. 41-09
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT
AND THE ISSUANCE OF NOT TO EXCEED $3,500,000 SEWER
REVENUE CAPITAL LOAN NOTES OF DUBUQUE, IOWA, AND
PROVIDING FOR PUBLICATION OF NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque,
Iowa should provide for the authorization of a Loan and Disbursement Agreement and
the issuance of Sewer Revenue Capital Loan Notes, in the amount of not to exceed
$3,500,000, as authorized by Sections 384.24A and 384.82, Code of Iowa, as
amended, for the purpose of providing funds to pay costs as hereinafter described; and
WHEREAS, the City has applied for a loan through the Iowa Water Pollution
Control Works Financing Program pursuant to which the Iowa Finance Authority has
agreed to purchase the City's Notes and has requested that such Notes be issued as a
single Note in a denomination equal to the total amount of the issue as authorized by
Chapter 384 of the City Code of Iowa; and
WHEREAS, the Loan and Disbursement Agreement and Note shall be payable
solely and only out of the net earnings of the Municipal Sewer Utility and shall be a first
lien on the future net earnings of the Utility; and shall not be general obligations of the
City or payable in any manner by taxation and the City shall be in no manner liable by
reason of the failure of the net revenues to be sufficient for the payment of the Loan and
Disbursement Agreement and Note; and
WHEREAS, before a Loan and Disbursement Agreement may be authorized and
Sewer Revenue Capital Loan Notes issued to evidence the obligation of the City
thereunder, it is necessary to comply with the provisions of the City Code of Iowa, as
-3-
thereunder, it is necessary to comply with the provisions of the City Code of Iowa, as
amended, and to publish a notice of the proposal and of the time and place of the
meeting at which the Council proposes to take action for the authorization. of the Loan
and Disbursement Agreement and Notes and to receive oral and/or written objections
from any resident or property owner of the City to such action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That this Council meet in the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the 16t" day of February, 2009, for the
purpose of taking action on the matter of the authorization of a Loan and Disbursement
Agreement and the issuance of not to exceed $3,500,000 Sewer Revenue Capital Loan
Notes to evidence the obligations of the City thereunder, the proceeds of which will be
used to provide funds to pay the costs of acquisition, construction, reconstruction,
extending, remodeling, improving, repairing and equipping all or part of the Municipal
Sewer Utility, including those costs associated with design engineering and construction
for upgrades to the Water Pollution Control Plant and implementation of the results of
the Water Pollution Control Plant Study.
Section 2. That the Clerk is hereby directed to cause at least one publication to
be made of a notice of said meeting, in a legal newspaper, printed wholly in the English
language, published at least once weekly, and having general circulation in said City,
said publication to be not less than four clear days nor more than twenty days before
the date of said public meeting on the issuance of the Notes.
Section 3. The notice of the proposed action shall be in substantially the
following form:
-4-
NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA ON THE MATTER OF THE PROPOSED
AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT
AND THE ISSUANCE OF NOT TO EXCEED $3,500,000 SEWER
REVENUE CAPITAL LOAN NOTES, AND THE PUBLIC HEARING ON
THE AUTHORIZATION AND ISSUANCE THEREOF
PUBLIC NOTICE is hereby ~iven that the Council of the City of Dubuque, Iowa,
will hold a public hearing on the 16t day of February, 2009, 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 additional action for the authorization of a Loan and
Disbursement Agreement by and between the City and the Iowa Finance Authority, and
the issuance to the Iowa Finance Authority of not to exceed $3,500,000 Sewer Revenue
Capital Loan Notes to evidence the obligations of the City under said Loan and
Disbursement Agreement, in order to provide funds to pay the costs of acquisition,
construction, reconstruction, extending, remodeling, improving, repairing and equipping
..all or part of the Municipal Sewer Utility, including those costs associated with design
engineering and construction for upgrades to the Water Pollution Control Plant and
implementation of the results of the Water Pollution Control Plant Study. The Notes will
not constitute general obligations or be payable in any manner by taxation, but will be
payable from and secured by the net revenues of the Municipal Sewer Utility.
The proceeds of the Sewer Revenue Capital Loan Notes may be applied to pay
project costs directly or to pay interim Project Notes which the City will issue in the
approximate amount of $3,500,000 in anticipation of the future receipt of funds or bond
proceeds applicable to the foregoing project and purpose. .
At the above meeting the Council shall receive oral or written objections from any
resident or property owner of the City, to the above action. After all objections have
been received and considered, the Council will at this meeting or at any adjournment
thereof, take additional action for the authorization of said Loan and Disbursement
Agreement and the issuance of Notes or will abandon the proposal to issue the Notes.
This Notice is given by order of the Council of Dubuque, Iowa, as provided by
Sections 384.24A and 384.83 of the City Code of Iowa, as amended.
Dated this 6th day of February, 2009.
Clerk of Dubuque, Iowa
(End of Notice)
PASSED AND APPROVED this 2nd day of February, 2009.
Mayor
ATTEST:
Clerk
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 the Municipality hereto affixed this 3rd day of
February, 2009.
City Clerk, Dubuque, Iowa
SEAL