Sewer Revenue Capital Loan Notes $65MMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
All- America City
2007
SUBJECT: Proceedings to Set Public Hearing on the Issuance of not to exceed
$65,000,000 Sewer Revenue Capital Loan Notes (State of Iowa Revolving
Fund Loan)
DATE: July 13, 2010
Finance Director Ken TeKippe recommends that a public hearing be set for August 2,
2010, on the authorization of a loan and disbursement agreement and the issuance of
not to exceed $65,000,000 Sewer Revenue Capital Loan Notes from the Iowa Water
Pollution Control Works Financing Program. This will permit the City to take advantage
of the 3% fixed interest rate for 26 years with a .25% annual administrative fee and a
one -time 1% loan origination fee for the borrowing. The funds will be used to pay the
costs of acquisition, construction, reconstruction, extending, remodeling, improving,
repairing and equipping all or part of the Municipal Sewer System, including those costs
associated with the Water Pollution Control Plant Modification Project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
Michael C. Van Milligen
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J TeKippe, Finance Director
DATE: July 13, 2010
KJT /jmg
Enclosures
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Jeanne Schneider, City Clerk
Dubuque
kraal
M- AmericaCity
111 I
'
2007
SUBJECT: Proceedings to Set Public Hearing on the Issuance of not to exceed
$65,000,000 Sewer Revenue Capital Loan Notes (State of Iowa Revolving
Fund Loan)
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 $65,000,000 Sewer Revenue Capital Loan Notes 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 3% fixed interest rate for 26 years with a .25%
annual administrative fee associated with the borrowing. There is a one -time 1% loan
origination fee for the borrowing. The planning and design loans for this project will be
rolled into this State of Iowa Revolving Fund Loan.
The loan funds 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 System, including those costs associated with the
Water Pollution Control Plant Modification Project.
The requested action step for City Council is to adopt the attached resolution fixing Ma
date of August 2, 2010 for a public hearing on the proposition of issuing not to exceed
$65,000,000 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.
WILLIAM J. NOTH
WNOTH @AHLERSLAW.COM
BY OVERNIGHT DELIVERY
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. IOWA 50309 -2231
PHONE 515 -243 -7611
FAX: 515 - 243 -2149
WWW.AHLERSLAW.COM
July 12, 2010
RE: Not to exceed $65,000,000 Sewer Revenue Capital Loan Notes
(State of Iowa Revolving Fund Loan)
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 384.82. Proceedings for the
date of the public hearing also are enclosed.
As you may know, the borrowing of loan funds by the City through the Iowa Water
Pollution Control Works Financing 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 low- interest loan under the
terms of a Loan and Disbursement Agreement, which 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.
WISHARD & BAILY - 1888; GUERNSEY & BAILY - 1893; GAILY & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER,
AHLERS & COONEY - 1950; AHLERS, COONEY, DORWEILER. ALLBEE, HAYNIE & SMITH - 1974; AHLERS, COONEY. DORWEILER, HAYNIE. SMITH & ALLBEE. P.C. - 1990
Direct Dial:
(515)246 -0332
July 12, 2010
Page 2
The Authority has advised that all Revolving Fund loans are subject to additional
procedural requirements, most notably - compliance with "Buy American" and prevailing
wage (Davis- Bacon) provisions. We'll coordinate with the Authority on your behalf to
properly document this loan program, but will defer to your engineers for contract
compliance requirements.
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.
The public hearing proceedings are 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 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 Agreement and issue the Notes, 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.
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.
July 12, 2010
Page 3
The Resolution taking additional action also acknowledges and approves of the
terms of the SRF loan program. As you know, the terms of the loan being offered to the
City are established primarily by reference to two external sources: the Authority's
administrative rules governing the SRF Program and, to a lesser extent, by the terms of
the bonds issued by the Authority to fund the City's loan. These loan terms are not
negotiable by individual borrowers, and the City's decision to participate in the SRF
Program effectively commits it to accept a loan on the stated terms.
Extra copies of the proceedings are enclosed to be filled in as the originals and
returned to us for our transcript of the action taken, 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.
Should you have any questions concerning the enclosed proceedings or the SRF
Program, please don't hesitate to contact me.
WJN:dc
encl.
cc: Barry Lindahl (w /encl.)
Jenny Larson (w /encl.)
DCORNELL \662237.1 \W P\ 10422.000
Yours very truly,
William J. Noth
NOTICE AND CALL OF PUBLIC MEETING
Not to exceed $65,000,000 Sewer Revenue Capital Loan Notes
(This Notice to be posted)
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: July 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 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 13 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.
July 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 Roy D. Buol in the chair, and the following named Council
Members:
Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch, David Resnick
Absent: Dirk Voetberg
* * * * * * * * * * * * * * * * **
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Council Member 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 $65,000,000 SEWER REVENUE CAPITAL LOAN NOTES OF DUBUQUE,
IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF ", and moved
that the same be adopted. Council Member Braig seconded the motion to adopt. The roll
was called and the vote was,
AYES: Braig, Buol, Connors, Jones, Lynch, Resnick
NAYS: None
Whereupon, the Mayor declared the Resolution duly adopted as follows:
RESOLUTION NO. 265-10
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT
AND THE ISSUANCE OF NOT TO EXCEED $65,000,000 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
$65,000,000, 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 System and shall be a first
lien on the future net earnings of the Utility; and shall not be general obligations of the
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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
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 2nd day of August, 2010, 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 $65,000,000 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 System, including those costs associated with the Water Pollution Control Plant
Modification Project.
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
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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 $65,000,000 SEWER
REVENUE CAPITAL LOAN NOTES, AND THE PUBLIC HEARING
ON THE AUTHORIZATION AND ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa,
will hold a public hearing on the 2 day of August, 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 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 $65,000,000 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 System, including those costs associated with the
Water Pollution Control Plant Modification Project. 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 System.
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 23 day of July, 2010.
City Clerk of Dubuque, Iowa
(End of Notice)
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ATTEST:
PASSED AND APPROVED this 19th day of
July
, 2010.
STATE OF IOWA
COUNTY OF DUBUQUE )
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 July, 2010.
SEAL
DCORNELL \662238.1 \WP\ 10422.000
ity Clerk, Dubuque, Iowa
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