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GO Bonds Series 2012E_$7K General Corporate PurposeTHE CITY OF Dui Masterpiece 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 $700,000 General Obligation Bonds, Series 2012E DATE: October 1, 2012 Dubuque kital All- America City II 111! 2012 Budget Director Jennifer Larson is recommending City Council approval of the suggested proceedings for the public hearing on the issuance of General Obligation Bonds prepared by 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 $700,000 General Obligation Bonds." These projects and their financing methods were approved by the City Council during the Fiscal Year 2013 budget process. The proceeds of which will be used to pay costs of projects including Granger Creek Trail at Technology Park South; development of Creek Wood Park in the Timber - Hyrst subdivision off Manson Road; development of the remainder of Westbrook Park in the Westbrook Subdivision on Seippel Road next to Dubuque Industrial Center West; maintenance on Parks buildings; Library interior and exterior repairs; and replacement play equipment for Marshall School on Rhomberg Avenue, which will continue the City's partnership with the Dubuque Community School District to provide playground equipment at schools that do not have parks close to them. Although the City is selling General Obligation Bonds to support the projects, repayments of the debt will be from tax increment revenues of the Technology Park South Urban Renewal Area, DRA Gaming and local option sales tax. The borrowing is subject to the "reverse referendum" procedures, under which petitions may be filed prior to the hearing asking that the bond proposal be submitted to an election. To qualify, a petition must be signed by eligible electors equal to at least ten percent of the number who voted in the last regular municipal election (but not less than ten persons). The proceedings have been prepared on the basis that no objections or petitions calling for an election on the bond proposal 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 closed. Immediately following, and assuming no petitions have been filed, a resolution is to be introduced and adopted entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $700,000 General Obligation Bonds." In the event the Council decides to abandon the proposal to issue said bonds, then the form of resolution included in said proceeding should not be adopted. In this event, a motion needs to be adopted to the effect that such bond proposal is abandoned. Section 384.25 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. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM /jml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jennifer Larson, Budget Director Kenneth TeKippe, Finance Director Susan Henricks, Library Director Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed $700,000 General Obligation Bonds, Series 2012E DATE: October 1, 2012 Dubuque kital All- America City II 111! 2012 INTRODUCTION The purpose of this memorandum is to provide the suggested proceedings for the public hearing on the issuance of General Obligation Bonds prepared by 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 $700,000 General Obligation Bonds." These projects and their financing methods were approved by the City Council during the Fiscal Year 2013 budget process. The proceeds of which will be used for general corporate purposes of the City. A letter from attorney Mark Cory detailing information on the bond hearing is enclosed. DISCUSSION Of the bond amount: • $193,000 is intended to provide funds to pay costs of Granger Creek Trail at Technology Park South. Improvements include asphalting the Granger Creek Nature Trail, plus trail signs, benches, shelters, picnic tables and litter receptacles. • $100,000 is intended to provide funds to pay costs of developing Creek Wood Park. This project provides for developing a new mini park in the Timber -Hyrst subdivision off Manson Road. Play equipment and play space will be included as well as a sitting area to enjoy the view. • $30,000 is intended to provide funds for developing the remainder of Westbrook Park in the Westbrook Subdivision on Seippel Road next to the Dubuque Industrial Center West. • $30,000 is intended to provide funds to pay costs of replacing the roofs on the golf course maintenance building, garage for the patrol cars, and building at the McAleece Park and Recreation Complex. • $10,000 is intended to provide funds for renovating the old ski club building on 32nd Street that is now used for storage of recreation program equipment. • $30,000 is intended to provide funds for Library Exterior Repair. This includes replacement of existing steps and brick stringers to basement of original Carnegie building, replacement of concrete door sill with Indiana limestone, repair deterioration in stone columns at historic entrance, remove rust stains at top landing, repair eight ornamental steps and railings, and light posts. • $135,000 is intended to provide funds for Library Renovation Repairs. The repairs and repainting include the mezzanine and rotunda ceiling, elm veneer replacement, additional ventilation to attic space over rotunda to prevent damage to interior paint, repair wainscoting that has slipped in the Board Room and Auditorium, additional HVAC control to third floor elevator lobby, and replacement of failed wood flooring. • $13,000 is intended to provide funds for the replacement of ten insulated glass windows, resealing, and repair of twenty -six aluminum grids at the Library. • $80,000 is intended to provide funds play equipment for Marshall School on Rhomberg Avenue. This project would continue our partnership with the Dubuque Community School District to provide playground equipment at schools that do not have parks close to them. • $10,000 is intended to provide funds for bond issuance costs and • $69,000 to be a contingency for fluctuations in the bond market for interest rates, bond issuance costs and change in project costs. Although the City is selling General Obligation Bonds to support the projects, repayments of the debt will be from tax increment revenues of the Technology Park South Urban Renewal Area, DRA Gaming and local option sales tax. 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. The borrowing is subject to the "reverse referendum" procedures, under which petitions may be filed prior to the hearing asking that the bond proposal be submitted to an election. To qualify, a petition must be signed by eligible electors equal to at least ten percent of the number who voted in the last regular municipal election (but not less than ten persons). The proceedings have been prepared on the basis that no objections or petitions calling for an election on the bond proposal 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 closed. Immediately following, and assuming no petitions have been filed, a resolution is to be introduced and adopted entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $700,000 General Obligation Bonds." In the event the Council decides to abandon the proposal to issue said bonds, then the form of resolution included in said proceeding should not be adopted. In this event, a motion needs to be adopted to the effect that such bond proposal is abandoned. Section 384.25 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. RECOMMENDATION I respectfully recommend the adoption of the enclosed resolution instituting the proceedings to take additional action. JML Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Kenneth TeKippe, Finance Director 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 R. Mark Cory rcory@ahlerslaw.com September 28, 2012 Ms. Jenny Larson Budget Director City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 RE: Not to exceed $700,000 General Obligation Bonds, Series 2012E Dear Ms. Larson: Direct Dial: (515)246 -0378 We enclose suggested proceedings to be acted upon by the Council on the date fixed for the hearing on the proposed issuance of the above mentioned bonds, pursuant to the provisions of Code Section 384.26. A certificate to attest the proceedings is also enclosed. Action must be taken at hearing. The proceedings are prepared to show as a first step the receipt of any petition for election on the proposed action of the Council to issue the bonds. If no petition is filed, the Council should proceed to adopt the resolution instituting proceedings to take additional action for the issuance of the bonds. Please notify me of the action taken so we can arrange to prepare the proceedings to follow. In the event the Council decides to abandon the proposal to issue bonds, then the form of resolution should not be adopted. We would suggest that, in this event, a motion merely be adopted to the effect that the bond proposal is abandoned. If Petition for Referendum is Filed. If such a petition has been received and if the Council decides not to abandon the proposal to issue bonds, a form of resolution should be introduced and adopted, to adjourn the matter to permit preparation of the resolution to call an election. WISHARO & BAILY - 1888: GUERNSEY & BAILY - 1893; BAILY & 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 September 28, 2012 Page 2 Please see that we are advised immediately if a petition is filed bearing signatures of a sufficient number of eligible electors. The resolution also authorizes a preliminary Official Statement to be completed and 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 Piper Jaffray, 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 the Finance Director to complete the draft document, and thereafter authorizes its distribution in connection with the offering of the Bonds to the public. September 28, 2012 Page 3 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. R. Mark Cory FOR THE FIRM RMC:dc Encl. cc: Ken TeKippe Tim Oswald 00895413 -1 \10422 -139 (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: October 15 , 2012. 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 $700,000 General Obligation Bonds, Series 2012E. • Public hearing on the issuance. • Resolution instituting proceedings to take additional action. • Resolution approving Distribution of Preliminary Official Statement and Electronic Bidding Procedures Such additional matters as are set forth on the additional 5 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. City erk, City of Dubuque, tate of Iowa October 15, 2012 The City Council of the City 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, Lynn Sutton Absent: 1 The Mayor announced that this was the time for meeting on the matter of the issuance of not to exceed $700,000 of General Obligation Bonds, Series 2012E, in order to provide funds to pay costs of the acquisition, construction, reconstruction, enlargement, improvement, and equipping of community center houses, recreation grounds, recreation buildings, juvenile playgrounds, swimming pools, recreation centers, parks, and golf courses, and the acquisition of real estate therefor, including the Granger Creek Trail, Creek Wood Park, Westbrook Park Phase II, roof replacement at McAleece Park, Park Maintenance Headquarters improvements and, Veteran's Memorial 32nd storage; and the construction, reconstruction, enlargement, improvement, and equipping of libraries, including Library exterior repairs, renovation and repair and replacement of windows; and any other purpose which is necessary for the operation of the City or the health and welfare of its citizens, including the acquisition and installation of Marshall School playground equipment; a general corporate purpose; and that notice of the proposal to issue the bonds and the right to petition for an election had been published as provided by Section 384.26, of the City Code of Iowa; and, the Mayor then asked the City Clerk whether any petition had been filed in the Clerk's Office, in the manner provided by Section 362.4 of the City Code of Iowa, and the Clerk reported that no such petition had been filed, requesting that the question of issuing the bonds be submitted to the qualified electors of the City. closed. Whereupon, the Mayor declared the hearing on the issuance of the bonds to be 2 Whereupon, Council Member Connors introduced and delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION AND ISSUANCE OF NOT TO EXCEED $700,000 GENERAL OBLIGATION BONDS, SERIES 2012E ", and moved that the Resolution be adopted. Council Member Jones seconded the motion. The roll was called and the vote was, AYES: Jones, Lynch, Resnick, Sutton, Braig, Buol, Connors NAYS: Whereupon, the Mayor declared the measure duly adopted. RESOLUTION NO. 284-12 RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION AND ISSUANCE OF NOT TO EXCEED $700,000 GENERAL OBLIGATION BONDS, SERIES 2012E WHEREAS, pursuant to notice published as required by law, the City Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of not to exceed $700,000 General Obligation Bonds, for general corporate purposes, in order to provide funds to pay costs of the acquisition, construction, reconstruction, enlargement, improvement, and equipping of community center houses, recreation grounds, recreation buildings, juvenile playgrounds, swimming pools, recreation centers, parks, and golf courses, and the acquisition of real estate therefor, including the Granger Creek Trail, Creek Wood Park, Westbrook Park Phase II, roof replacement at McAleece Park, Park Maintenance Headquarters improvements and, Veteran's Memorial 32nd storage; and the construction, reconstruction, enlargement, improvement, and equipping of libraries, including Library exterior repairs, renovation 3 and repair and replacement of windows; and any other purpose which is necessary for the operation of the City or the health and welfare of its citizens, including the acquisition and installation of Marshall School playground equipment, and no petition was filed calling for a referendum thereon. The following action is now considered to be in the best interests of the City and residents thereof; WHEREAS, pursuant to Section 384.28 of the Code of Iowa, it is appropriate to offer the foregoing Bonds for sale, in the aggregate principal amount as hereinafter described; and WHEREAS, a preliminary form of Official Statement has been prepared for the purpose of offering the Bonds for sale to the public; and WHEREAS, it is appropriate that the form of the preliminary Official Statement be approved and deemed final and, upon completion of the same, that the preliminary Official Statement be used in connection with the offering of the Bonds for sale to the public; and WHEREAS, the Council has received information from its financial advisor 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, STATE OF IOWA: Section 1. That this Council does hereby institute proceedings and take additional action for the authorization and issuance in the manner required by law of not to exceed $700,000 General Obligation Bonds, for the foregoing general corporate purpose. Section 2. The receipt of electronic bids by facsimile machine and through the PARITY competitive bidding system described in the Official Statement 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 at public sale. Section 3. 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 -4- 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 advisor, shall determine to be appropriate, and is authorized to be distributed thereafter in connection with the offering of the Bonds for sale. PASSED AND APPROVED this 15th day of October , 2012. ATTEST: 5 AidLi Mayor 7 CERTIFICATE STATE OF IOWA ) SS COUNTY OF DUBUQUE 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. WITNESS my hand and the seal of the City hereto affixed this day of , 2012. City Clerk, City of Dubuque, State of Iowa (SEAL) 00895408 -1 \10422 -139 NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $700,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS SERIES GENERAL 2012E (FOR CORPORATE PURPOSES), AND HEARING ON ISSUANCE OF FONDS Public Note is hereby given that ic the Council of the City of necessary for the operation of the City or the health and welfare of its citizens, including the acqui- sition and installation of i Marshall School playground equipment. At any time before the date of the meeting, at' petition, asking Dubuque, Iowa, will ruction, enlargement, improvement, and ncluding L of ibrary rexter- and repairepaenovatand replacement of win- dows; and any other purpose which is the question of issuing hold a public hearing such bonds be on the '15th day of sobmi of d ho'C the Y octber, 2012, at 630 be filed with the City o'clock Fed in d- Clerk of the;City in the Historic 0edWel Bu6d- manner provided by ins, ,D West :6th Section 362.4 of the Street, Dubuque, Iowa, Code of Iowa, pursuanf at which meeting Council proposes to take action for the issuance of not to exceed $700,000 of General Obligation Bonds, Series 2012E (for general corporate puoses), the rate of bearing interest at not to exceed nine (9) per centum per annum, the bonds to be issued for the purpose of providing funds to pay costs of construction, acqui- sition, reennstructio oue , iment ment, imp and equipping center community recreation houses, recreation ecreation buildings, juvenile playng - grounds, swi m mi pools, recreation gtohle f torsr , sep c arks,annd caocquisition to ? pr,.26 ns o section 384°4!26 of the code of Iowa. This Notice is given by order of the Council of the City of Dubuque, Iowa, as provided by Section 384.26 of the Code of Iowa. Any visual or hearing - impaired persons need- ing special assistance or persons with special accessibility needs should contact the City Clerk's office at ( TDD 563) at of real estate therefor, includ- ing the anger Cre Tral, Greek Gr Wood Parkek , Wesitbrook Park Phase II, roo replacement at McAlef ece Park, Park Maintenance Head- quarters improvements and, Veteran's Memor- ial 32nd storage; and the construction, recon- 589 -4120 or (563) 690 -6678 at least 48 hours prior to the meeting. Dated , this 2412 3rd day of October. Kevin S. Firnstahl City Clerk, City of Dubuque, Iowa 0/3 STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: October 03, 2012, and for which the charge is $34.81. Subscribed to before me, alptary Public in and for Dubuque County, Iowa, ,20 this day of rotary Public in and for Dubuque County, Iowa. MARY K. WEST ERMEYER Cdrnrnj eiart lkiumbor 184885