Water Revenue Capital Loan Notes_$8mTO: 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
$8,000,000 Water Revenue Capital Loan Notes (Drinking Water State
Revolving Fund Loan) for the Water Meter Change Out Project
DATE: July 15, 2009
Finance Director Ken TeKippe is recommending approval of the "Resolution Instituting
Proceedings to Take Additional Action for the Authorization of a Loan and Disbursement
Agreement and the Issuance of $8,000,000 Water Revenue Capital Loan Notes."
This 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 from the Drinking Water
State Revolving Loan Fund. There is a 1 % 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.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
,~
Mic ael 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
DT TR ~ M-AmerlcaClty
Masterpiece on the Mississippi.
2007
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J TeKippe, Finance Director
SUBJECT: Proceedings for 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: July 13, 2009
The purpose of this memorandum is to provide the suggested proceedings for the 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. 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 proceedings have been prepared on the basis that no objections 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 Notes to be closed. Immediately
following, a resolution is to be introduced and adopted entitled "Resolution Instituting
Proceedings to Take Additional Action for the Authorization of a Loan and Disbursement
Agreement and the Issuance of $8,000,000 Water Revenue Capital Loan Notes."
Section 384.83 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 loan, 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 the Council decides to
abandon the proposal to issue said loans, 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 loan proposal is abandoned.
The action step for City Council is to hold the public hearing and approve the resolution.
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
AHLERS ~.COON~Y, P.C.
ATTORNEYS AT LAW
100 COURT AVENUE • SUITE 600
DES MOINES, IOWA 50309-2231
PHONE 515-243-7611
FAX: 515-243-2149
WWW.AHLERSLAW.COM
WILLIAM J. NOTH
WNOTH@AHLERSLAW.COM
July 7, 2009
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
RE: Not to exceed $8,000,000 Water Revenue Capital Loan Notes
(Drinking Water State Revolving Fund Loan)
Dear Mr. Tekippe:
Direct Dial:
(515)246-0332
With this letter I am enclosing suggested Council proceedings for the date of the
public hearing on the proposed issuance of the above Notes. The proceedings have been
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 authorize the form of
Loan and Disbursement Agreement and issue the Notes to the Iowa Finance Authority.
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 to enter into
the Loan Agreement and issue the Note, a form of resolution follows that should be
introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional
Action."
Section 384.83 of the Code of Iowa provides that any resident or property owner
of the City may appeal the decision to take additional action 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.
July 7, 2009
Page 2
In the event the Council decides to abandon the proposal 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 proposal is abandoned.
Once a final loan amount has been determined, you will need to contact the Iowa
Finance Authority to request a disbursement and repayment schedule. Please let me
know when you receive the same so that I can prepare the final Council resolution
authorizing issuance of the Note.
Should you have any questions, please don't hesitate to contact me.
Yours very truly,
William J. Noth
WJN:dc
encl.
DCORNELU 622491.1 /MSWord\10422.091
The Council then considered the proposed action and the extent of objections
thereto.
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 OF A LOAN AND
DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED
$8,000,000 WATER REVENUE CAPITAL LOAN NOTES", and moved:
XX that the Resolution be adopted.
to ADJOURN and defer action on the Resolution and
the proposal to institute proceedings to the meeting
to be held at o'clock .M. on the
day of , 2009, at this place.
Council Member Lynch seconded the motion. The roll was called and the vote
was,
AYES: Braig, Buol, Connors, Jones, Lynch, Resnick, Voetberg
NAYS: None
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 254-09
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL
ACTION FOR THE AUTHORIZATION OF A LOAN AND
DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $8,000,000 WATER REVENUE CAPITAL LOAN NOTES
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
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, for the purpose of paying 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, and
has considered the extent of objections received from residents or property owners as
to said proposal 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 takes
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 in the manner required by law of not to exceed $8,000,000 Water Revenue
Capital Loan Notes for the foregoing purpose.
Section 2. That the City Clerk, with the assistance of the City Attorney and
bond counsel, is hereby authorized and directed to proceed with the preparation of such
documents and proceedings as shall be necessary to authorize the City's participation
in the DWSRF Loan Program, to select a suitable date for final Council authorization of
the required Loan and Disbursement Agreement and issuance of the Note to evidence
the City's obligations thereunder, and to take such other actions as the Clerk shall deem
necessary to permit the completion of a loan on a basis favorable to the City and
acceptable to this Council.
Section 3. This Resolution shall serve as a declaration of official intent under
Treasury Regulation 1.150-2 and shall be maintained on file as a public record of such
intent. It is reasonably expected that water fund moneys may be advanced from time to
time for capital expenditures which are to be paid from the proceeds of the above Loan
and Disbursement Agreement. The amounts so advanced shall be reimbursed from the
proceeds of the Loan and Disbursement Agreement not later than eighteen months
after the initial payment of the capital expenditures or eighteen months after the
property is placed in service. Such advancements shall not exceed the loan amount
authorized in this Resolution unless the same are for preliminary expenditures or unless
another declaration of intention is adopted.
PASSED AND APPROVED this 20t"day of July, 2009.
ATTEST:
~G`ity Clerk
(This Notice to be posted)
Governmental Body:
Date of Meeting:
Time of Meeting:
Place of Meeting:
NOTICE AND CALL OF PUBLIC MEETING
The City Council of Dubuque, Iowa.
2009.
o'clock .M.
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
Public hearing on the authorization of a Loan and Disbursement Agreement
and the issuance of Notes to evidence the obligation of the City thereunder.
- Resolution instituting proceedings to take additional action.
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 session, in the Historic
Federal Building, 350 West 6th Street, Dubuque, Iowa, at o'clock
.M., on the above date. There were present Mayor
in the chair, and the following named Council
Members:
Absent:
The Mayor announced that this was the time and place for the public hearing and
meeting on the matter of 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 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, and that notice of the proposed action by the Coui,~~l
to institute proceedings for the authorization of the Loan and Disbursement Agreement
and the issuance of the Notes had been published pursuant to the provisions of Sections
384.24A and 384.83 of the Code of Iowa, as amended.
The Mayor then asked the City Clerk whether any written objections had been
filed by any City resident or property owner to the proposal. The City Clerk advised the
Mayor and the Council that written objections had been filed. The Mayor
then called for oral objections to the proposal and 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)
CERTIFICATE
STATE OF IOWA )
SS
COUNTY OF DUBUQUE )
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attacheU 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
day of , 2009.
City Clerk, Dubuque, Iowa
SEAL
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