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