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Bond Sale for Water ProjectsMEMORANDUM October 17, 2002 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Issuance of General Obligation Bonds and Advertisement of General Obligation Bonds for Sale The City Council will hold two public hearings. The first public hearing is to consider the sale of General Obligation Bonds in the amount not to exceed $3,300,000 to support the new water tower and water main along the Northwest Arterial. The second public hearing is to consider the sale of General Obligation Bonds in an amount not to exceed $650,000 for the purpose of refunding the remaining portion of $3,100,000 in General Obligation Bonds previously issued for Water Plant, Water Pollution Control Plant, Street Construction and Storm Sewer Projects, which will save the City $8,500 because of more favorable interest rates. Assuming both of these issuances are approved, Finance Director Ken TeKippe is recommending advertisement for sale of $3,110,000 in General Obligation Bonds. The reason it is not $3,300,000 plus $650,000, for a total of $3,950,000, is because the bids on the water project on the Northwest Arterial came in more favorable than originally expected, and only $2,500,000 of the $3,300,000 is needed. Also only $610,000 of the $650,00 is needed. The combination of $2,500,000 and $610,000 equals $3,110,000. I concur with the recommendation and respectfully request Mayor and City Council approval of the sale of General Obligation Bonds in the amount not to exceed $3,950,000 and the advertisement for sale of $3,110,000 in General Obligation Bonds. Michael C. Van Milligen MCVM/jh Attachment CC:Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Kenneth J. TeKippe, Finance Director Pauline Joyce, Administrative Services Manager CITY OF DUBUQUE, IOWA MEMORANDUM TO:Michael C. Van Milligen, City Manager FROM:Kenneth J. TeKippe, Finance Director SUBJECT:Proceedings for Public Hearings on the Issuance of General Obligation Bonds DATE:October 14, 2002 The purpose of this memorandum is to provide the suggested proceedings for the public hearings on the issuance of General Obligation Bonds for the Water Projects and to refund the General Obligation Bonds Series 1994, dated May 1, 1994. Separate hearings should be held on each proposal. In each case, the proceedings have been prepared on the basis that no objections will be flied 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 to be closed. Immediately following the first hearing, a resolution is to be introduced and adopted entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $3,300,000 General Obligation Bonds". Following the second hearing, a resolution entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $650,000 General Obligation Bonds" should be introduced and adopted. In the event the Council decides to abandon either proposal to issue said Bonds, then the form of resolution included in said proceedings 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. Bond Counsel William Noth has also prepared suggested proceedings to direct the advertisement of Bonds for sale, in the principal amount of $3,110,000 and to approve the form of Notice of Bond Sale (attached). Under the schedule proposed, these proceedings should be considered following the public hearings and adoption of the resolutions taking additional action, with the sale date set for November 4, 2002. KT/jg Attachments cc: Barry Lindahl, Corporation Counsel Pauline Joyce, Administrative Services Manager Jeanne Schneider, City Clerk MEMORANDUM October 1, 2002 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Bond Sale to Support Water Projects (New Water Tower and New Water Main Along Northwest Arterial) Finance Director Ken TeKippe is recommending the sale of General Obligation Bonds not to exceed $3,300,000 to support water projects which were included in the adopted Fiscal Year 2003 CIP budget, and that a public hearing be set for October 21, 2002. I concur with the recommendation and respectfully request Mayor and City Council approval, _____________________ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Kenneth J. TeKippe, Finance Director CITY OF DUBUQUE, IOWA MEMORANDUM. TO:Michael C. Van Milligen, City Manager FROM:Kenneth J TeKippe, Finance Diractor SUBJECT: Bond Sale to Support Water Projects (New Water Tower and New Water Main along Northwest Arterial) DATE:September 30, 2002 The purpose of this memorandum is to recommend the sale of General Obligation Bonds to support water projects which were included in the adopted FY'03 CIP budget. Although we are selling General Obligation Bonds to support the project, repayment of the debt will be from water revenues. The date of publication is to be not less than four clear days nor more than twenty days before the date of said public meeting on the issuance of said Bonds. The requested action steps for City Council is to adopt the attached resolution fixing the date of October 21, 2002 for a public hearing on the proposition of selling not to exceed $3,300,000 in General Obligation Bonds (for an essential corporate purpose) of Dubuque, Iowa and providing for publication of notice thereof. KJT/jmg Attachments cc: Barry Lindahl Pauline Joyce Jeanne Schneider (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body:The City Council of Dubuque, Iowa. Date of Meeting: October 21 , 2002. Time of Meeting: 6:30 o'clock P .M. Place of Meeting:Auditorium, Carnegie-Stout Public Library, 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: Not to exceed $3,300,000 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 9 .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 roles of said governmental body. C~ty Clerk, Dubuque, Iowa October 22 ,2002 The City Council of Dubuque, Iowa, met in Regul ar session, in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date. There were present Mayor lerrance M. Duqqan , in the chair, andthe following named Council Members: Roy Buol, Patricia Cline, Joyce Connors, John Markham, Ann Michalski, Dan Nicholson Absent: None -1- The Mayor announced that this was the time and place for the public hearing and meeting on the matter of the issuance of not to exceed $3,300,000 General Obligation Bonds in order to provide funds to pay costs of the acquisition, construction, improvement and equipping of waterworks and water main extensions, including water trealment plant facilities and water main extensions and improvements, an essential corporate purpose, and that notice of the proposed action by the Council to institute proceedings for the issuance of said Bonds had been published pursuant to the provisions of Section 384.25 of the City Code of Iowa. The Mayor then asked the Clerk whether any written objections had been filed by any City resident or property owner to the issuance of said Bonds. The Clerk advised the Mayor and the Council that no written objections had been filed. The Mayor then called for omi objections to the issuance of said 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- The Council then considered the proposed action and the extent of objections thereto. Whereupon, Council Member Markham introduced and delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $3,300,000 GENERAL OBLIGATION BONDS", and moved: that the Resolution be adopted. to ADJOURN and defer action on the Resolution and the proposal to institute proceedings for the issuahce of Bonds to the meeting to be held at o'clock__.M, on the day of , 2002, at this place. Council Member called and the vote was, Buol seconded the motion. The roll was AYES: BuOl, Cline, Connors, Duggan, Markham, Michalski, Nicholson NAYS: None Whereupon, the Mayor declared the measure duly adopted. RESOLUTION NO. 573-02 RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $3,300,000 GENERAL OBLIGATION BONDS WHEREAS, pursuant to notice published as required by law, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of not to exceed $3,300,000 General Obligation Bonds for the essential corporate purpose of paying costs of the acquisition, construction, improvement and equipping of waterworks and water main extensions, including water treatment plant facilities and water main extensions and improvements, and has considered the extent of objections received from residents or property owners as to said proposed issuance of -3- bonds; and, accordingly 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: Section 1. That this Council does hereby institute proceedings and take additional action for the sale and issuance in the manner required by law of not to exceed $3,300,000 General Obligation Bonds for the foregoing essential corporate purpose. Section 2. That this Resolution be and does hereby serve as a declaration of official intent under Treasury Regulation 1.150-2, because the City reasonably expects to reimburse with the proceeds of the Bonds, all or a portion of original expenditures incurred in connection with the above purpose. PASSED AND APPROVED this 2002. ATTEST: lerk 21st day of October CIG-3 9/91 CERTIFICATE STATE OF IOWA COUNTY OF DUBUQUE ) ) ss ) I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is a tree and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council, and the same is a tree 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 fi~her 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 22nd day of October ,2002. Clerk, Dubuque, Iowa SEAL DCORNELL~336588\l \10422060 -5- CITY OF DUBUQUE, IOWA CITY COUNCIL MEETING MONDAY, OCTOBER 21, 2002 5:00 - DINNER - LIBRARY ROTUNDA 5:30 P.M. - SPECIAL MEETING - PUBLIC WORKS FACILITY DESIGN 6:30 P.M.- REGULAR MEETING LIBRARY AUDITORIUM INVOCATION Sister Dorothy Heiderscheit, President of the Sisters of St. Francis PROCLAMATIONS Childhood Lead Poisoning Prevention Week (October 20 - 26, 2002) Red Ribbon Week (October 23 - 31, 2002) CONSENT ITEMS The consent agenda items are considered to be routine and non-controversial and all consent items will be normally voted upon in a single motion without any separate discussion on a particular item. If you would like to discuss one of the Consent Items, please go to the microphone and be recognized by the Mayor and state the item you would like removed from the Consent Agenda for separate discussion and consideration. Minutes Submitted Airport Commission of 9/26; City Council of 10/7; Housing Code Appeals Board of 8/20; Human Rights Commission of 9~9; Long Range Planning Commission of 10118; Plumbing Board of 10/8; Zoning Advisory Commission of 10/2; Zoning Board of Adjustment of 9~26 Proofs of publication of City Council Proceedings of 9/26 and List of Claims and Summary of Revenues for month ending August 31, 2002 Printed City Council Official Proceedings for August, 2002 Finance Director submitting the City of Dubuque Financial Reports for the month ending September 30, 2002 Suggested Disposition: Receive and File; Approve as Printed Notice of Claims/Suits American Trust and Savings Bank for property damage; Paul Beyer for property damage; Hartig Drug Company for property damage; Nancy M. and Lynn J. Kalina for personal injury; Mike Kilcoyne for property damage; Garry Swank for property damage Suggested Disposition: Receive and File; Refer to Legal for Investigation/Report Corporation Counsel advising that the following claims have been referred to Public Entity Risk Services of Iowa, the agent for the Iowa Communities Assurance Pool: American Trust and Savings Bank for property damage and Garry Swank for property damage EXP PRIOR TO FY 02 ESTIMATED FY 02 PROJECT BUDGET A. EXPENDITUREITEMS Design & Engineering Land and R.O.W. Con,ruction Other TOTAL B. PROJECT FINANCING Water Depreciation Fund GO Bonds TOTAL 2002-03 $ 154,490 $ 1,776,635 $ 1,931,125 $ 3t,125 $ 1,900,000 $ 1,931,125 2003-04 2004-05 BEYOND 2005-06 2006-07 2007 - $ - $ $ $ PROJECT DESCRIPTION This project provides for installation of a 16-inch water main from Highway 20 north along the east side of the Northwest Arterial to John F. Kennedy Road, and then west on John F. Kennedy Road to the new water tower located at the soccer complex. JUSTIFICATION This project will dramatically increase fire flows and carrying capacity to the fourth pressure zone and industrial parks west of Radford Road. This project will serve as a main transmission tine from the proposed elevated storage tank at the Soccer Complex. This project will be funded with a $1,500,000 General Obligation Bond issue paid ~vith water revenues. Debt service will require a 2% rate increase in Fiscal Year 2003, 2004 and 2006. RELATIONSHIP TO OTHER PROJECTS This project will improve flows into the fourth pressure zone and supply water to areas being developed west of town and will eliminate the need to do major improvements to the Asbury pump station. This project implements the Comprehensive Plan's Infrastructure Element: Goals 1.1, 1.2, 11.1, 11.7, and 11.9; and the Land Use and Urban Design Element: Goals 2.2 and 3.1. EXP PRIOR ESTIMATED TO FY 02 FY 02 735 $ 735 $ $ 735 $ 735 $ PROJECT BUDGET A. EXPENDITURE ITEMS Design & Engineering Land and R.O.W. Construction Other TOTAL B. PROJECT FINANCING GO Bonds TOTAL 2002-03 $ 200,000 $ 1,200,000 $ 1,400,000 $ 1,400 000 $ 1,400,000 2003-04 2004.05 2005-06 2006-07 BEYOND 2007 PROJECT DESCRIPTION This project has created a fourth pressure zone in the Water Distribution System. This improvement has successfully provided adequate water pressure to areas of the City located in higher elevations. In Fiscal Year 2003 the project provides for a new one million gallon hydropillar water tower located on John F. Kennedy Road next to the soccer complex. JUSTIFICATION The number of water users is increasing due to rapfd expansion of the city on the west side. The new hydropillar water tank will provide the necessary storage for reserve water capacity as well as extra capacity for fire protection. This project will be funded with a General Obligation bond issue of $1,400,000 in Fiscal Year 2003. The annual debt service on this issue will be financed with current water revenues plus a two percent rate increase in Fiscal Year 2003, 2004 and 2006. The rate increases will each generate an additional $70,000 in water fees to be used for debt service. RELATIONSHIP TO OTHER PROJECTS This project implements the Comprehensive Plan's Infrastructure Element: Goals 1.1, 1.2, and 1.3.