Water Revenue Capital Loan Notes $1mMasterpiece on the Mississippi
DATE: January 11, 2010
MCVM:Iw
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. Tekippe, Finance Director
Michael C. Van Milligen
Dubuque
hititi
All-America City
1 1r
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
$1,000,000 Water Revenue Capital Loan Notes for the Water Meter
Change Out Project (American Recovery and Reinvestment Act (ARRA)
Forgivable Loan)
Finance Director Kenneth Tekippe is requesting City Council to adopt the attached
resolution fixing the date of February 1, 2010 for a public hearing on the proposition of
issuing not to exceed $1,000,000 Water Revenue Capital Loan Notes for the Water
Meter Change Out Project (American Recovery and Reinvestment Act (ARRA)
forgivable loan) and providing for publication of notice.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
THE CITY OF
Dui
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
DATE: January 11, 2010
DISCUSSION
Dubuque
Al-America City
1 '
2007
The project includes replacing approximately 22,000 water meters and installation of
hardware and software for fixed based remote read capabilities.
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 $1,000,000 Water Revenue Capital Loan Notes for the Water Meter Change
Out Project (American Recovery and Reinvestment Act (ARRA) forgivable loan).
The forgivable loan funds will be the first funds u1Itlegifor Coss of the Water Meter
Change Out Project.
FROM: Kenneth J TeKippe, Finance Director ��.,,�, ✓ -'
SUBJECT: Proceedings to Set Public Hearing on the Issuance of not to exceed
$1,000,000 Water Revenue Capital Loan Notes for the Water Meter
Change Out Project (American Recovery and Reinvestment Act (ARRA)
Forgivable Loan)
BACKGROUND
A public hearing was held on July 20, 2009 for a not to exceed $8,000,000 Water
Revenue Capital Loan Notes (Drinking Water State Revolving Fund Loan) for the Water
Meter Change Out Project Loan which is the primary financing for the project. The City
will take advantage of a 3% fixed interest rate for 20 years with a .25% annual
administrative fee and a one -time 1% loan origination fee for the not to exceed
$8,000,000 borrowing.
At the December 7, 2009 City Council meeting approving a firm for the project, the
$8,875,000 project budget included $7,875,000 State Revolving Fund (SRF) loan antt a
$1,000,000 American Recovery and Reinvestment Act (ARRA) forgivable loan. At the
time the firm was identified, the total estimated project cost was $8,675,709.
RECOMMENDED ACTION
The requested action step for City Council is to adopt the attached resolution fixing the
date of February 1, 2010 for a public hearing on the proposition of issuing not to exceed
$1,000,000 Water Revenue Capital Loan Notes for the Water Meter Change Out Project
(American Recovery and Reinvestment Act (ARRA) forgivable loan) 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
WILLIAM J. NOTH
WNOTHOAHLERSLAW.COM
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001 -4864
Dear Mr. TeKippe:
AHLERS COONEY, P.C.
ATTORNEYS AT LAW
100 COURT AVENUE • SUITE 600
DES MOINES.10WA 50309 -2231
PHONE 515- 243 -7611
FAX: 515 -243 -2149
WWW.AHLERSLAW.COM
January 8, 2010
RE: Not to exceed $1,000,000 Water Revenue Capital Loan Note
(Forgivable Loan)
WISHARBI & BMLY - 1 BBB: GUERNSEY & BAILY - 1893: BMLY & STIPP - 1901: STIPP. PERRY. BANNISTER & STARZVNGER -1914: BANNISTER. CARPENTER,
AHLERS & COONEY -1950: ANLERSS. COONEY. DORWER.ER. ALLBEE. HAYNIE & Sumi - 1974; ANLERS, COONEY, DORWEILER. HAYNIE. SMITH & ALLBEE. P.C. - 1990
Direct Dial:
(515)245 -0332
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 Note and ordering publication of a notice of hearing
consistent with the provisions of Code Sections 384.24A and 384.83.
As you know, the borrowing of loan funds by the City through the Iowa Drinking
Water State Revolving Fund Program ( "DWSRF Program ") involves the same procedures
applicable to the issuance and sale of municipal bonds generally. In this instance, the'
Iowa Finance Authority (the "Authority ") has agreed to make the City a forgivable Ioan
under the terms of a Forgivable Loan and Disbursement Agreement, which will be
secured and evidenced by a Water Revenue Capital Loan Note that will be issued to the
Authority at the time the loan is closed.
January 8, 2010
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 days before the date of said public meeting. In computing
time, the date of publication should be excluded. If the last day falls on Sunday, the
whole of the following Monday should be excluded.
Also enclosed is an extra copy of the proceedings to be filled 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.
Should you have any questions concerning the enclosed proceedings, please don't
hesitate to contact me.
WJN:dc
encl.
DCORNELL1642210.1 \WA10422.091
Yours very truly,
William J. Noth
NOTICE AND CALL OF PUBLIC MEETING
Not to exceed $1,000,000 Water Revenue Capital Loan Notes
1
agilt
ity Clerk, Dubuque, Iowa
(This Notice to be posted)
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: January 19, 2010
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:
Resolution fixing date for a meeting on the proposition to authorize a
Forgivable 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 7 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.
January 20, 2010
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 Pro -Tem David Resnick in the chair, and the following named
Council Members:
Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch, Dirk Voetberg
Absent: Mayor Roy Buol
* * * * * * * * * * * * * * * * **
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Council Member Karla Braig introduced the following Resolution entitled
"RESOLUTION FIXING DATE FOR A MEETING ON THE AUTHORIZATION OF A
FORGIVABLE LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF
NOT TO EXCEED $1,000,000 WATER REVENUE CAPITAL LOAN NOTES OF
DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF ",
and moved that the same be adopted. Council Member Dirk Voetberg seconded the motion
to adopt. The roll was called and the vote was,
AYES: Braig, Connors, Jones, Lynch, Resnick, Voetberg
NAYS: None
Whereupon, the Mayor declared the Resolution duly adopted as follows:
RESOLUTION NO. 18 -10
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A FORGIVABLE LOAN AND
DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $1,000,000 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 Forgivable Loan and Disbursement Agreement
and the issuance of Water Revenue Capital Loan Notes, in the amount of not to exceed
$1,000,000, 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, and pursuant to the American Recovery and Reinvestment Act
of 2009 ( "ARRA ") and in accordance with the terms of a Forgivable Loan and
Disbursement Agreement, the Iowa Finance Authority has determined to make a
forgivable loan to the City in the amount of not to exceed $1,000,000, from funds
3
available to the Iowa Finance Authority under the ARRA, for the purpose of assisting the
project as hereinafter described; and
WHEREAS, before the Forgivable 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 Forgivable 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 1 day of February, 2010, for the
purpose of taking action on the matter of the authorization of a Forgivable Loan and
Disbursement Agreement and the issuance of not to exceed $1,000,000 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.
form:
Section 3. The notice of the proposed action shall be in substantially the following
4
NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA ON THE MATTER OF THE PROPOSED
AUTHORIZATION OF A FORGIVABLE LOAN AND
DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $1,000,000 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 1 day of February 2010, 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 Forgivable 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 $1,000,000 Water Revenue
Capital Loan Notes to evidence the obligations of the City under said Forgivable 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 22 day of January, 2010.
Jeanne F. Schneider, CMC
City Clerk
(End of Notice)
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ATTEST:
PASSED AND APPROVED this 19th day of January, 2010.
David T. Resnick
Mayor Pro Tem
ATTEST:
Jeanne F. Schneider
City Clerk
STATE OF IOWA
COUNTY OF DUBUQUE
SEAL
DCORNELU 642245.1 /MSWord\10422.091
CERTIFICATE
) SS
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 20 day
of January, 2010.
ity Clerk, Dubuque, Iowa
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