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Water Revenue Bonds $5.7M_Water System ImprovementsMasterpiece on the Mississippi TO: 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 $5,700,000 Water Revenue Bonds DATE: July 13, 2010 Finance Director Ken TeKippe is recommending City Council approval of the suggested proceedings for the public hearing on the issuance of Water Revenue Bonds and approval of a "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $5,700,000 Water Revenue Bonds ". The proceeds of the bonds will be used to pay costs of water main replacements and other water system improvements in the adopted FY11 CIP budget. The repayment of the debt will be from water utility fees. 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 1 Michael C. Van Milligen Dubuque bitti AN- AmeticaCity 11111 r 2007 Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Kenneth J. TeKippe, Finance Director 2'"" Cl/l.�f SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed $5,700,000 Water Revenue Bonds DATE: July 12, 2010 Dubuque kilkd AFAmerica Criy 2007 The purpose of this memorandum is to provide the suggested proceedings for the public hearing on the issuance of Water Revenue Bonds to support several water capital projects prepared by our Bond Counsel and to present a resolution for City Council to adopt entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $5,700,000 Water Revenue Bonds." The project involves providing funds to pay costs of water main replacements and other water system improvements in the adopted FY'11 CIP budgets. The repayment of the debt will be from water utility fees. A letter from attorney William Noth detailing information on the bond hearing is enclosed. 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 Bonds to be closed. Immediately following, a resolution is to be introduced and adopted entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $5,700,000 Water Revenue Bonds." In the event the Council decides to abandon the 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 384.83 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 Bonds, to the District Court of a county in which any part of the City is located, within 15 days after,auch additional action is taken, but that the additional action is final and conclusive unless the court finds that the Council exceeded its authority. KT /jg Enclosures cc: Barry Lindahl, City Attorney Jenny Larson, Budget Director Jeanne Schneider, City Clerk William J. Noth wnoth @ahlerstaw.com Mr. Ken TeKippe Finance Officer City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 -4864 Dear Mr. TeKippe: AHLERS BY OVERNIGHT DELIVERY COONEY, P.C. 100 COURT AVENUE. SUITE 600 DES MOINES. IOWA 50309 -2231 PHONE 515 -243 -7611 FAX; 515- 243 -2149 WWW.AHLERSLAW.COM June 7, 2010 Re: Not to exceed $5,700,000 Water Revenue Bonds WISHARD & BAILY - 1888; GUERNSEY & BAILY - 1893; BAILY & STIPP - 1901; STIPP. PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER. AHLERS & COONEY - 1950: AHLERS, COONEY. DDRWEILER. ALLBEE, HAYNIE & SMITH - 1974: AHLERS, COONEY. DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. - 1990 Direct Dial: (515)246 -0332 We enclose suggested proceedings to be acted upon by the Council on the date fixed for the hearing on the issuance of the above mentioned Bonds, pursuant to the provisions of Code Sections 384.82 and 384.83. A certificate to attest the proceedings is also enclosed. The 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 issue the Bonds. 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 not to abandon the proposal to issue the Bonds, a form of resolution follows that should be introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of not to exceed $5,700,000 Water Revenue Bonds." The Council is required by statute to adopt the resolution instituting proceedings to issue the Bonds at the hearing -- or an adjournment thereof. If necessary to adjourn, the minutes are written to accommodate that action. In the event the Council decides to abandon the proposal to issue said Bonds, then the form of resolution included in said proceedings should not be adopted. We would June 7, 2010 Page 2 suggest that, in this event, a motion merely be adopted to the effect that such bond proposal is abandoned. Sections 384.82 and 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 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. 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. Also enclosed is an extra copy of the proceedings to be filled in as the original and certified back to this office. If you have any questions pertaining to the proceedings enclosed or this letter, please do not hesitate to either write or call. WJN:dc Encl. cc: Jenny Larson (w /encl.) Tionna Pooler (w /encl.) DCORNELU 661430.1 /MSWord110422.109 Very truly yours, William J. Noth (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City 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 the meeting is as follows: Not to exceed $5,700,000 Water Revenue Bonds. • Public hearing on the issuance. • Resolution instituting proceedings to take additional action. Such additional matters as are set forth on the additional 13 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 the governmental body. ity Clerk, City of Dubuque, Iowa 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 * * * * * * * * * * * * * * * * ** 1 July 20, 2010 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 $5,700,000 Water Revenue Bonds of the City, in order to provide funds to pay costs of constructing and equipping improvements and extensions to the Municipal Water System, and that notice of the proposed action to institute proceedings for the issuance of the Bonds, had been published pursuant to the provisions of Section 384.83 of the City Code of Iowa. Inquiry was made whether any written objections had been filed by any resident or property owner of the City to the issuance of the Bonds by the City. The Clerk stated that no written objections had been filed. Oral objections to the issuance of the Bonds were then called for and received 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 proposed action and the extent of objections thereto were then considered. Whereupon, Council Member Connors introduced and delivered to the City Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $5,700,000 WATER REVENUE BONDS," and moved its adoption. 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. 271-10 RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $5,700,000 WATER REVENUE BONDS WHEREAS, pursuant to notice published as required by law, a public meeting and hearing has been held upon the proposal to institute proceedings for the issuance of not to exceed $5,700,000 Water Revenue Bonds for the purpose of paying costs of constructing and equipping improvements and extensions to the Municipal Water System; and the extent of objections received from residents or property owners as to the proposed issuance of Bonds has been fully considered; 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, STATE OF IOWA: Section 1. That this governing body does hereby institute proceedings and takes additional action for the sale and issuance in the manner required by law of not to exceed $5,700,000 Water Revenue Bonds for the foregoing purpose. 3 Section 2. 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 the water utility funds may be advanced from time to time for capital expenditures which are to be paid from the proceeds of the above Bonds. The amounts so advanced shall be reimbursed from the proceeds of the Bonds 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 amount authorized in this Resolution unless the same are for preliminary expenditures or unless another declaration of intention is adopted. ATTEST: PASSED AND APPROVED this 19th day of July , 2010. STATE OF IOWA COUNTY OF DUBUQUE CERTIFICATE ) SS I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the 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 the 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 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 the 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. 2010. (SEAL) WITNESS my hand and the seal of the City hereto affixed this 20 day of July, DCORNELL/ 661431.1 /MSWord \10422.109 5 ity Clerk, City of Dubuque, Iowa