Water Revenue Bonds_Proceedings to Direct Advertisement of SaleMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
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All-AmedcaCity
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2007
SUBJECT: Proceedings to Direct Advertisement for Sale and Approve Electronic
Bidding Procedures for $5,700,000 Water Revenue Bonds, Series 2010D
DATE: July 20, 2010
Finance Director Ken TeKippe recommends City Council approval to advertise the sale
of $5,700,000 Water Revenue Bonds and approve electronic bidding procedures and
the form of notice of sale. These funds will pay costs of water main replacements and
other water system improvements in the adopted Fiscal Year 2011 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
Michael C. Van Milligen
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director ° (Lc 2 , �, , V1 j k' r - / 2
,
SUBJECT: Proceedings to Direct Advertisement for Sale and Approve Electronic
Bidding Procedures for $5,700,000 Water Revenue Bonds, Series 2010D
DATE: July 20, 2010
The purpose of this memorandum is to recommend the advertisement for the sale of the
$5,700,000 Water Revenue Bonds and approve electronic bidding procedures and the
form of notice of sale. 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. The bond sale will be held on
August 16, 2010. A letter from attorney William Noth detailing information on the bdnd
advertisement is enclosed.
The requested action step for City Council is to adopt the attached resolution to cover
the advertisement for sale of the above bonds.
KJT /jmg
Enclosures
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Jeanne Schneider, City Clerk
Dubuque
AI- America CNy
2007
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.
100 COURT AVENUE. SUITE 600
DES MOINES. IOWA 50309 -2231
PHONE 515 -243 -7611
FAX: 515 -243 -2149
WWW.AHLERSLAW.COM
July 20, 2010
RE: $5,700,000 Water Revenue Bonds, Series 2010D
Direct Dial:
(515)246 -0332
I am enclosing suggested Council procedure to cover the advertisement for sale of
the above Bonds. It is my understanding this will be acted upon by the Council at its
meeting on August 2, 2010, with the sale being held on August 16, 2010.
The procedure consists of a resolution directing the advertisement of Bonds for
sale and the form of notice of sale. The Notice of Bond Sale must be published at least
one time in a newspaper published in the County where the Bonds are offered for sale.
The Bond sale may be held at any time; but not less than four clear days nor more than
twenty days following the date of the last publication. An extra copy of the notice is
enclosed for use by the newspaper.
The procedure assumes that your financial consultant has recommended to the
Council that electronic bidding procedures be utilized for this Bond sale. Based upon this
recommendation, the Iowa Code requires that the Council make a finding that the
recommended procedure will provide reasonable security and maintain the integrity of
the competitive bidding process and facilitate the delivery of bids by interested parties
under the circumstances of the particular sale. The proceedings enclosed are prepared on
the basis that the Council will agree with the recommendation and make the necessary
findings.
July 20, 2010
Page 2
The resolution also authorizes a preliminary Official Statement to be completed
distributed in connection with the offering of the Bonds for sale. A draft copy of the
preliminary Official Statement will be delivered to you separately by Public Financial
Management, and should be forwarded to the City Council with the enclosed
proceedings.
Careful review of the draft Official Statement by appropriate City staff and
members of the City Council is an important step in the offering of the Bonds for sale to
the public. The U.S. Securities and Exchange Commission (the "Commission ") has
stated that "issuers are primarily responsible for the content of their disclosure documents
and may be held liable under the federal securities laws for misleading disclosure." In
several recent enforcement proceedings, the Commission has made clear that it expects
public officials to generally review disclosure documents in light of their unique
knowledge and perspectives on the issuer and its financial circumstances, or else to
ensure that appropriate procedures are in place to provide the necessary review.
As you know, Rule 15c2 -12 of the Commission requires prospective purchasers of
the Bonds to obtain and review an official statement that has been "deemed final" by the
City prior to submitting a bid to purchase the Bonds. For this purpose, the official
statement may omit certain information that is dependent upon the pricing of the issue
(such as interest rates, bond maturities and redemption features), but should otherwise be
accurate and complete. The enclosed resolution authorizes you to complete the draft
document, and thereafter authorizes its distribution in connection with the offering of the
Bonds to the public.
An extra copy of the proceedings is enclosed to be completed as the original and
i"urned to us for our transcript of the action taken. A copy of the publisher's affidavit
also should be returned to us, using the separate certification enclosed.
If any questions arise please keep me advised.
WJN:dc
encl.
cc: Tionna Pooler (w /encl.)
Jenny Larson (w /encl.)
Very truly yours,
William J. Noth
comell/662879.1 /Word\ 1 0422.109
NOTICE AND CALL OF PUBLIC MEETING
(This Notice to be posted)
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: August 2, 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:
$5,700,000 Water Revenue Bonds, Series 2010D.
Resolution directing the advertisement for sale and approving electronic
bidding procedures
Such additional matters as are set forth on the additional 10 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 the governmental body.
ity Clerk, 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,
Dirk Voetberg
Absent: None
* * * * * * **
August 3, 2010
Council Member Kevin Lynch introduced the following Resolution entitled
"RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF $5,700,000
WATER REVENUE BONDS, SERIES 2010D, AND APPROVING ELECTRONIC
BIDDING PROCEDURES" and moved its adoption. Council Member Karla Braig
seconded the Resolution to adopt. The roll was called and the vote was,
AYES: Braig, Buol, Connors, Jones, Lynch, Resnick, Voetberg
NAYS: None
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 284-10
RESOLUTION DIRECTING THE ADVERTISEMENT
FOR SALE OF $5,700,000 WATER REVENUE BONDS,
SERIES 2010D, AND APPROVING ELECTRONIC
BIDDING PROCEDURES
WHEREAS, the City of Dubuque, Iowa (the "City ") is in need of funds to pay
costs of constructing and equipping improvements and extensions to the Municipal Water
System, and it is deemed necessary and advisable that the City issue water revenue bonds
for such purposes to the amount of $5,700,000 as authorized by Section 384.83 of the
City Code of Iowa; and
WHEREAS, pursuant to notice published as required by Section 384.83 this
Council has held a public meeting and hearing upon the proposal to institute proceedings
for the issuance of the above described Bonds, and all objections, if any, to such Council
action made by any resident or property owner of the City were received and considered
by the Council; and it is the decision of the Council that additional action be taken for the
issuance of Bonds, and that such action is considered to be in the best interests of the City
and the residents thereof;
WHEREAS, the Council has received information from its Financial Consultant
recommending that sealed and electronic facsimile and internet bidding be authorized for
the sale of the Bonds, and that such procedures will maintain the integrity and security of
the competitive bidding process and facilitate the delivery of bids by interested parties;
and
WHEREAS, the Council deems it in the best interests of the City and the residents
thereof to receive bids to purchase such Bonds by means of sealed and electronic
facsimile and internet communication.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That the receipt of electronic bids by facsimile machine and through
the PARITY competitive bidding system described in the Notice of Sale are hereby
found and determined to provide reasonable security and to maintain the integrity of the
competitive bidding process, and to facilitate the delivery of bids by interested parties in
connection with the offering of the Bonds hereinafter described at public sale.
Section 2. That the preliminary Official Statement in the form presented to this
meeting be and the same hereby is approved as to form and deemed final for purposes of
Rule 15c2 -12 of the Securities and Exchange Commission, subject to such revisions,
corrections or modifications as the Finance Director, upon the advice of bond counsel and
the City's financial consultant, shall determine to be appropriate, and is authorized to be
distributed thereafter in connection with the offering of the Bonds for sale.
Section 3. That the Clerk is hereby directed to publish notice of sale of the Bonds
at least once, the last one of which shall be not less than four clear days nor more than
twenty days before the date of the sale. Publication shall be made in the Telegraph
Herald, a legal newspaper, printed wholly in the English language, published within the
county in which the Bonds are to be offered for sale or an adjacent county. The notice is
given pursuant to Chapter 75 of the Code of Iowa, and shall state that this Council, on the
16th day of August, 2010, at 6:30 o'clock P.M., will hold a meeting to receive and act
upon bids for the Bonds; the notice to be in substantially the following form:
NOTICE OF BOND SALE
Time and Place of Sealed Bids: Sealed bids for the sale of Bonds of the City of
Dubuque, Iowa, will be received at the office of the Finance Director, City Hall, 50 West
13th Street, Dubuque, Iowa (the "Issuer ") until 11:00 o'clock A.M., on the 16th day of
August, 2010. The bids will then be publicly opened and referred for action to the
meeting of the City Council as stated below.
Sale and Award: The sale and award of the Bonds will be held at the Historic
Federal Building, 350 West 6th Street, at a meeting of the City Council on the above date
at 6:30 o'clock P.M.
The Bonds: The Bonds to be offered are the following:
WATER REVENUE BONDS, SERIES 2010D, in the amount
of $5,700,000, to be dated the date of delivery (the "Bonds ").
Adjustment of Principal Amounts. The Issuer reserves the right to decrease the
aggregate principal amount of the Bonds at the time of sale, as described in the
Terms of Offering. Any such change will be in increments of $5,000, and may be
made in any of the maturities. The purchase price will be adjusted proportionately
to reflect any change in issue size.
Manner of Bidding: Open bids will not be received. Bids for each series of the
Bonds will be received by any of the following methods:
• Sealed Bidding: Sealed bids may be submitted and will be received at the
office of the Finance Director, Dubuque, Iowa
• Electronic Internet Bidding: Electronic internet bids will be received at the
office of the Finance Director, Dubuque, Iowa. The bids must be submitted
through the PARITY competitive bidding system.
• Electronic Facsimile Bidding: Electronic facsimile bids will be received at
the office of the Finance Director, Dubuque, Iowa (facsimile number:
563/589- 0890). Electronic facsimile bids will be sealed and treated as
sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of
sealed bids will be announced. Sealed bids will then be publicly opened and announced.
Finally, electronic internet bids will be accessed and announced.
Official Statement: The Issuer has issued an Official Statement of information
pertaining to the Bonds to be offered, including a statement of the Terns of Offering and
an Official Bid Form, which is incorporated by reference as a part of this notice. The
Official Statement may be obtained by request addressed to the City Clerk, 50 W. 13th
Street, Dubuque, Iowa 52001 (telephone: 563/589 -4100) or the financial advisor to the
City, Public Financial Management, Inc., 2600 Grand Avenue, Suite 214, Des Moines,
Iowa 50312 (telephone: (515) 243 - 2600).
Terms of Offering: All bids shall be in conformity with and the sale shall be in
accord with the Terms of Offering as set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the opinion of Ahlers & Cooney,
P.C., Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished
together with the printed Bonds without cost to the purchaser and all bids will be so
conditioned. Except to the extent necessary to issue their opinion as to the legality of the
Bonds, the attorneys will not examine or review or expres s any opinion with respect to
the accuracy or completeness of documents, materials or statements made or furnished in
connection with the sale, issuance or marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
By order of the City Council of the City of Dubuque, Iowa.
City Clerk of the City of Dubuque, Iowa
(End of Notice)
STATE OF IOWA
COUNTY OF DUBUQUE
(SEAL)
662880.1 /MSWord \10422.109
) SS
NOTICE OF BOND SALE
, 2010.
CERTIFICATE
I, the undersigned, do hereby certify that I am now and was at the times
hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the
County of Dubuque, State of Iowa, and that as such Clerk and by full authority from the
Council of the City, I have caused a
of which the clipping annexed to the publisher's affidavit hereto attached is in
words and figures a correct and complete copy, to be published as required by law
in the Telegraph Herald, a legal newspaper published at least once weekly, printed
wholly in the English language, published regularly and mailed through the post
office of current entry for more than two years and which has had for more than
two years a bona fide paid circulation recognized by the postal laws of the United
States, and has a general circulation in the City, and that the Notice was published
in all of the issues thereof published and circulated on the following date:
WITNESS my official signature at Dubuque, Iowa, this day of
, 2010.
City Clerk, City of Dubuque, Iowa
STATE OF IOWA
COUNTY OF DUBUQUE
(SEAL)
662880.1 /MSWord\ 1 0422.109
CERTIFICATE
) SS
I, the undersigned, do hereby certify that I am now and was at the times
hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the
County of Dubuque, State of Iowa, and that as such Clerk and by full authority from the
Council of the City, I have caused a
NOTICE OF BOND SALE
of which the clipping annexed to the publisher's affidavit hereto attached is in
words and figures a correct and complete copy, to be published as required by law
in the Telegraph Herald, a legal newspaper published at least once weekly, printed
wholly in the English language, published regularly and mailed through the post
office of current entry for more than two years and which has had for more than
two years a bona fide paid circulation recognized by the postal laws of the United
States, and has a general circulation in the City, and that the Notice was published
in all of the issues thereof published and circulated on the following date:
, 2010.
COMPLETE AND RETURN TO
MR. NOTH
WITNESS my official signature at Dubuque, Iowa, this day of
, 2010.
City Clerk, City of Dubuque, Iowa
ATTEST:
PASSED AND APPROVED this 2 day of : ugust, 2010.
Mayor
d�
STATE OF IOWA
COUNTY OF DUBUQUE
CERTIFICATE
) SS
CIG -3
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 the Municipality
showing proceedings of the 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.
WITNESS my hand and the seal of the Municipality hereto affixed this 3 day of
August, 2010.
SEAL
CORNELL/662875.1 /MSWord \10422.109
ity Clerk, Dubuque, Iowa