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Water Revenue Capital Loan NotesTHE CITY OF Dubuque T--~. V B E AN-Amer~aCilY 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 $8,000,000 Water Revenue Capital Loan Notes (Drinking Water State Revolving Fund Loan) for the Water Meter Change Out Project DATE: June 30, 2009 Finance Director KenTeKippe is recommending that a public hearing be set for July 20, 2009 on the proposition of issuing not to exceed $8,000,000 in Water Revenue Capital Loan Notes for a Drinking Water Site Revolving Fund Loan for the Water Meter Change Out Project. I concur with the recommendation and respectfully request Mayor and City Council approval. Mi ael C. Van Milligen MCVM:Iw Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Ken TeKippe, Finance Director THE CITY OF DUB E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Kenneth J TeKippe, Finance Director Dubuque AA-AmedcaCMy ~ r 2007 j.~ v `' r ~' ~,~L ~~ SUBJECT: Proceedings to Set Public Hearing on the Issuance of not to exceed $8,000,000 Water Revenue Capital Loan Notes (Drinking Water State Revolving Fund Loan) for the Water Meter Change Out Project DATE: June 29, 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 $8,000,000 Water Revenue Capital Loan Notes (Drinking Water State Revolving Fund Loan) for the Water Meter Change Out Project. The hearing called by the enclosed proceedings will permit the City to take advantage of the 3% fixed interest rate for 20 years with a .25% annual administrative fee associated with the borrowing. There is a one-time 1 % loan origination fee for the borrowing. The loan funds will be used for the Water Meter Change Out Project. The work includes replacing approximately 22,000 water meters and installation of hardware and software for fixed based remote read capabilities. The requested action step for City Council is to adopt the attached resolution fixing the date of July 20, 2009 for a public hearing on the proposition of issuing not to exceed $8,000,000 Water Revenue Capital Loan Notes (Drinking Water State Revolving Fund Loan) for the Water Meter Change Out Project 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 Bob Green, Water Department Manager (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of Dubuque, Iowa. Date of Meeting: , ?009. Time of Meeting: o'clock .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: Not to exceed $8,000,000 Water 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 _ 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 said governmental body. City Clerk. Dubuque, Iowa 2009 The City Council of Dubuque, Iowa, met in Federal Building, 350 West 6th Street, Dubuque, Iowa, at the above date. There were present Mayor __ the following named Council Members: Absent: session, in the Historic o'clock .M., on _, in the chair, and -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 $8,000,000 WATER REVENUE CAPITAL LOAN NOTES OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF",,and moved that the same be adopted. Council Member Karla Braig 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. 222-09 RESOLUTION FIXING DATE FOR A MEETING ON THE AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $8,000,000 WATER 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 Water Revenue Capital Loan Notes, in the amount of not to exceed $8,000,000, as authorized by Sections 384.24A and 384.83, 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 Drinking Water State Revolving Fund 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 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 Water 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 _3_ WHEREAS, before a Loan and Disbursement Agreement may be authorized and Water Revenue Capital Loan Notes issued to evidence the obligation of the City thereunder, it is necessary to comply with the provisions of the 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 20T" day of July, 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 $8,000,000 Water 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 Water Utility, including those costs associated with the acquisition and installation of a fixed radio network water meter system. 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 $8,000,000 WATER REVENUE CAPITAL LOAN NOTES, AND THE PUBLIC HEARING ON THE AUTHORIZATION AND ISSUANCE THEREOF PUBLIC NOTICE is hereby-given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 20th day of July, 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 $8,000,000 Water 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 Water Utility, including those costs associated with the acquisition and installation of a fixed radio network water meter system. 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 Water Utility. 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 City Council of Dubuque, Iowa, as provided by Sections 384.24A and 384.83 of the Code of Iowa, as amended. Dated this 10th day of July, 2009. Jeanne F. Schneider, CMC City Clerk of Dubuque, Iowa (End of Notice) -5- PASSED AND APPROVED this 6th day of July, 2009. ATTEST: Roy D. Buol Mayor ATTEST: Jeanne F. Schneider City Clerk CIG-3 9/91 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 reduired 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 __ ___ _ day of .2009. City Clerk, Dubuque, Iowa SEAL DCORNELU 622646 1 Rv1SWord\I0422 091 -7- O~f~6r~~~,,~ STATE OF IOWA ) SS COUNTY OF DUBUQUE ) CIG-I8 I, the undersigned, do hereby certify that I am now and was at the times hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of Dubuque, State of Iowa, and that as such Clerk and by full authority from,the Council of said City, I have caused a 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 $8,000,000 WATER REVENUE CAPITAL LOAN NOTES AND THE PUBLIC HEARING ON THE AUTHORIZATION AND ISSUANCE THEREOF of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures a correct and complete copy, to be published as required by law in the Telegraph Herald, a legal newspaper published at least once weekly, printed wholly in the English language, published regularly and mailed through the post office of current entry for more than two years and which has had for more than two years a bona fide paid circulation recognized by the postal laws of the United States, and has a general circulation in the City, and that said Notice was published in said newspaper in all of the issues thereof published and circulated on the following date: 2009 WITNESS my official signature at Dubuque, Iowa, this day of 2009. City Clerk SEAL DCORNELL\622492 I \ W P\ 10422.000