GO Bonds Series 2012E_$4M Essential Corporate PurposesMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
kital
All- America City
II h/
2012
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$4,000,000 Essential Corporate Purpose General Obligation Bonds,
Series 2012E
DATE: October 1, 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 $4,000,000 General Obligation Bonds." These project costs 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 essential corporate
purpose projects including the Southwest Arterial Project; installation of 1,200 feet of
storm sewer in conjunction with the reconstruction of 7th Street from Iowa Street to Shot
Tower Drive; repair of the 30 inch diameter sanitary sewer force main from the Cedar
Street lift station to the Terminal Street lift station; Comiskey Park improvements
including park amenity replacements and additions, new entry and gathering space, and
replacement of the exterior doors; replacement of the playground equipment structure
for ages two through five year -olds in Flora Park; Water System Improvements; and
replacement of Public Safety software.
Although the City is selling General Obligation Bonds to support the projects,
repayments of the debt will be from tax increment revenues of the Greater Downtown
Urban Renewal Area, local option sales tax, DRA gaming, sanitary sewer user fees and
water user fees.
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 $4,000,000
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 proceedings should not be adopted. In this event, a
motion needs to be adopted to the effect that such Bond proposal is abandoned.
Section 384.25 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
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
Dubuque
kital
All- America City
II h/
2012
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$4,000,000 Essential Corporate Purpose General Obligation Bonds,
Series 2012E
DATE: October 1, 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 $4,000,000 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 the Bonds
will be used for essential corporate purposes of the City. A letter from attorney Mark
Cory detailing information on the bond hearing is enclosed.
DISCUSSION
Of the bond amount:
• $1,280,000 is intended to provide funds to pay costs of Southwest Arterial
Project.
• $135,000 is intended to provide funds to pay for the installation of 1,200 feet of
storm sewer in conjunction with the reconstruction of 7th Street from Iowa Street
to Shot Tower Drive.
• $650,000 is intended to provide funds for repair of the 30 inch diameter sanitary
sewer force main from the Cedar Street lift station to the Terminal Street lift
station.
• $100,000 is intended to provide funds to pay costs for Comiskey Park
improvements including park amenity replacements and additions, new entry
and gathering space, and replacement of the exterior doors.
• $30,000 is intended to provide funds for replacing the playground equipment
structure for ages two through five year -olds in Flora Park.
• $424,000 is intended to provide funds for Water Main Replacements.
• $50,000 is intended to provide funds for Water Main Extensions.
• $165,000 is intended to provide funds for water main replacements in Green
Alleys.
• $50,000 is intended to provide funds to extend the public water main from the
current end point at Digital Driver south to the Airport.
• $360,000 is intended to provide funds for replacement of Public Safety software,
including Computer Aided Dispatch (CAD), Corrections, Mobile Radios, and
Records Management for Dubuque Police, Dubuque Fire Emergency
Communications, and Dubuque County.
• $60,000 is intended to provide funds for bond issuance costs and
• $696,000 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 Greater Downtown
Urban Renewal Area, local option sales tax, DRA gaming, sanitary sewer user fees and
water user fees.
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 $4,000,000
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 proceedings should not be adopted. In this event, a
motion needs to be adopted to the effect that such Bond proposal is abandoned.
Section 384.25 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.
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.
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 &COON EY, 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@ahlerstaw.com
September 28, 2012
Ms. Jenny Larson
Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
RE: Not to exceed $4,000,000 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 issuance of the above mentioned bonds, pursuant to the
provisions of Code Section 384.25. 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 $4,000,000
General Obligation Bonds, Series 2012E."
Action Must Be Taken At The Hearing.
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
WISHARD & 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
suggest that, in this event, a motion merely be adopted to the effect that such bond
proposal is abandoned.
Appeal to District Court.
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.
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.
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.
Very s,
R. Ma Cory
FOR THE FIRM
RMC:dc
Encl.
cc: Ken TeKippe
Tim Oswald
00895418 -1 \10422 -139
f! , !1
J J 4;ate
(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 1,5 , 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 $4,000,000 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
k, City of
ubuque, 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 and place for the public hearing and
meeting on the matter of the issuance of not to exceed $4,000,000 General Obligation
Bonds, Series 2012E, in order to provide funds to pay costs of the opening, widening,
extending, grading, and draining of the right -of -way of streets, highways and avenues, the
construction, reconstruction, and repairing of any street improvements, the acquisition,
installation, and repair of traffic control devices and the acquisition of real estate needed
for any of the foregoing purposes; the acquisition, construction, reconstruction, extension,
improvement, and equipping of works and facilities useful for the collection, treatment,
and disposal of sewage and industrial waste in a sanitary manner, for the collection and
disposal of solid waste, and for the collection and disposal of surface waters and streams,
including the 7th Street Storm Sewer, and sanitary forcemain repairs; the rehabilitation
and improvement of parks already owned, including the removal, replacement and
planting of trees in the parks, and facilities, equipment, and improvements commonly
found in City parks, including improvements for Comiskey Park and Flora Park; the
acquisition, construction, reconstruction, improvement, repair, and equipping of
waterworks, water mains, and extensions, and real and personal property, useful for
providing potable water to residents of a City, including annual water main replacement,
water main extensions, Green Alley water mains and fittings and Airport water main; and
the acquisition of peace officer communication equipment and other emergency services
communication equipment and systems, including police /emergency /public safety
communication software, essential corporate purposes, and that notice of the proposed
action by the Council to institute proceedings for the issuance of the bonds, had been
published pursuant to the provisions of Section 384.25 of the City Code of Iowa.
The Mayor then asked the Clerk whether any written objections had been filed by
any City resident or property owner to the issuance of the bonds. The Clerk advised the
Mayor and the Council that -0- written objections had been filed. The Mayor then
called for oral objections to the issuance of the bonds and -0- 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 Council then considered the proposed action and the extent of objections
thereto.
• Whereupon, Council Member Jones introduced and delivered to the Clerk the
Resolution hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS
TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED
$4,000,000 GENERAL OBLIGATION BONDS, SERIES 2012E ", and moved that the
Resolution be adopted.
was,
Council Member Connors seconded the motion. The roll was called and the vote
AYES: Jones, Lynch, Resnick, Sutton, Braig, Buol, Connors
NAYS:
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 285-12
RESOLUTION INSTITUTING PROCEEDINGS TO
TAKE ADDITIONAL ACTION FOR THE ISSUANCE
OF NOT TO EXCEED $4,000,000 GENERAL
OBLIGATION BONDS, SERIES 2012E
WHEREAS, pursuant to notice published as required by law, this Council has held
a public meeting and hearing upon the proposal to institute proceedings for the issuance
of not to exceed $4,000,000 General Obligation Bonds, Series 2012E, for the essential
corporate purpose of paying costs of the opening, widening, extending, grading, and
draining of the right -of -way of streets, highways and avenues, the construction,
reconstruction; and repairing of any street improvements, the acquisition, installation, and
repair of traffic control devices and the acquisition of real estate needed for any of the
3
foregoing purposes; the acquisition, construction, reconstruction, extension,
improvement, and equipping of works and facilities useful for the collection, treatment,
and disposal of sewage and industrial waste in a sanitary manner, for the collection and
disposal of solid waste, and for the collection and disposal of surface waters and streams,
including the 7th Street Storm Sewer, and sanitary forcemain repairs; the rehabilitation
and improvement of parks already owned, including the removal, replacement and
planting of trees in the parks, and . facilities, equipment, and improvements commonly
found in City parks, including improvements for Comiskey Park and Flora Park; the
acquisition, construction, reconstruction, improvement, repair, and equipping of
waterworks, water mains, and extensions, and real and personal property, useful for
providing potable water to residents of a City, including annual water main replacement,
water main extensions, Green Alley water mains and fittings and Airport water main; and
the acquisition of peace officer communication equipment and other emergency services
communication equipment and systems, including police /emergency /public safety
communication software, and has considered the extent of objections received from
residents or property owners as to the proposed issuance of bonds; and, accordingly the
following action is now considered to be in the best interests of the City and residents
thereof; and
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:
-4-
Section 1. That this Council does hereby institute proceedings and take additional
action for the sale and issuance in the manner required by law of not to exceed
$4,000,000 General Obligation Bonds, Series 2012E, for the foregoing essential
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
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
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)
00895400 -1 \10422 -139
NOTICE OF MEETING
OF THE CITY
COUNCIL OF THE
CITY OF DUBUQUE,
IOWA, ON THE
MATTER OF THE
PROPOSED ISSUANCE
OF NOT TO EXCEED
$4,000,000 GENERAL
OBLIGATION BONDS,
SERIES 2012E, (FOR
ESSENTIAL
CORPORATE
PURPOSES) OF THE
CITY, AND THE
HEARING ON THE
ISSUANCE THEREOF
PUBLIC NOTICE is
hereby given that the
City of Dubuque, Iowa,
will hold a public
hearing on the 15th
day of October, 2012,
at 6:30 o'clock PM, in
the Historic Federal
Building, 350 West 6th
Street, Dubuque, Iowa,
at which meeting the
Council proposes to
take additional action
for the issuance of not
to exceed $4,000,000
General Obligation
Bonds, Series 2012E,
for essential corporate
purposes of said City,
in order to provide
funds to pay costs of
the opening, widening,
extending, grading,
and draining of the
right -of -way of streets,
highways and avenues,
the construction,
reconstruction, and
repairing of any street
improvements, the
acquisition, installa-
tion, and repair of
traffic control devices
and the acquisition of
real estate needed for
any of the foregoing
purposes; the acqui-
sition, construction,
reconstruction, exten-
sion, improvement, and
equipping of works and
facilities useful for the
collection, treatment,
and disposal of sewage
and industrial waste in
a sanitary manner, for
the collection and
disposal of solid waste,
and for the collection
and disposal of surface
waters and streams,
including the 7th Street
Storm Sewer, and
sanitary forcemain
repairs; the rehabil-
itation and improve-
ment of parks already
owned, including the
removal, replacement
and planting of trees in
the parks, and
facilities, equipment,
and improvements
commonly found in
City parks, including
improvements for
Comiskey Park and
Flora Park; the
acquisition, construc-
tion, reconstruction,
improvement, repair,
and equipping of
waterworks, water
mains, and extensions,
and real and personal
property, useful for
providing potable
water to residents of a
City, including annual
water main replace-
ment, water main
extensions, Green Alley
water mains and
fittings and Airport
water main; and the
acquisition of peace
officer communication
equipment and other
emergency services
communication equip -'
ment and systems,
including police /emer-
gency /public safety
communication soft-
ware.
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 issuance
of bonds or will
abane
to issue don bothnds. proposal
This notice is given by
order of the City
Council of the City of
Dubuque, State of
I, as provided by
Section dwa 384.25 of the
City 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 (563)
589 -4120 or TDD' at
(563) 690 -6678 at least
48 hours prior to the
meeting.
Dated this 3rd day of --
October, 2012.
Kevin S. Firnstahl
City Clerk, City of
Dubuque, Iowa
It 10/3
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 $43.30.
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this day of 20
Notary Public in and for Dubuque County, Iowa.
MARY K. WESTERMEYER
Commission I1umbor 154^n885