SRF Loan for Water & Resource Recovery CenterTHE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
kital
All- America City
II 111!
2012
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$2,400,000 Sewer Revenue Capital Loan Notes (State of Iowa Revolving
Fund Loan)
DATE: December 11, 2012
Finance Director Ken TeKippe recommends the City Council set a public hearing for
January 7, 2013, on the proposition of issuing not to exceed $2,400,000 in Sewer
Revenue Capital Loan Notes.
The loan funds will be used to provide funds to pay the costs of acquisition,
construction, reconstruction, extending, remodeling, improving, repairing and equipping
all or part of the Municipal Sewer System, including those costs associated with the
acquisition and installation of microturbines, compression skid, heat recovery units and
related mechanical, electrical and site work at the Water & Resource Recovery Center
to utilize anaerobic digester gas in a combined heat and power facility.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
hrilit44 krt.,709,
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Kenneth J. TeKippe, Finance Director
Masterpiece on tile Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J TeKippe, Finance Director
Dubuque
kraal
All-America City
1
2007
SUBJECT: Proceedings to Set Public Hearing on the Issuance of not to exceed
$2,400,000 Sewer Revenue Capital Loan Notes (State of Iowa Revolving
Fund Loan)
DATE: December 10, 2012
The purpose of this memorandum is to recommend the setting of a public hearing on
the authorization of a loan and disbursement agreement and the issuance of not to
exceed $2,400,000 Sewer Revenue Capital Loan Notes from the Iowa Water Pollution
Control Works Financing Program. The hearing called by the enclosed proceedings will
permit the City to take advantage of the 1.75% fixed interest rate for 20 years with a
.25% annual administrative fee associated with the borrowing. There is a one -time
.50% loan origination fee for the borrowing.
The loan funds will be used to provide funds to pay the costs of acquisition,
construction, reconstruction, extending, remodeling, improving, repairing and equipping
all or part of the Municipal Sewer System, including those costs associated with the
acquisition and installation of microturbines, compression skid, heat recovery units and
related mechanical, electrical and site work at the Water & Resource Recovery Center
to utilize anaerobic digester gas in a combined heat and power facility.
The requested action step for City Council is to adopt the attached resolution fixing the
date of January 7, 2013 for a public hearing on the proposition of issuing not to exceed
$2,400,000 in Sewer Revenue Capital Loan Notes of Dubuque, Iowa and providing for
publication of notice. A letter from attorney R. Mark Cory detailing information on the
bond hearing is enclosed.
KJT /em 1
Enclosures
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Kevin Firnstahl, City Clerk
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
December 10, 2012
Ms. Jenny Larson
Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
RE: Not to exceed $2,400,000 Sewer Revenue Capital Loan Notes
(State of Iowa Revolving Fund Loan)
Dear Ms. Larson:
Direct Dial:
(515)246 -0378
We have now prepared and are enclosing herewith suggested proceedings to be
acted upon by the City Council in fixing the date of a meeting on the proposition to issue
the above mentioned Capital Loan Note and ordering publication of a notice of hearing
consistent with the provisions of Code Sections 384.24A and 384.82. Proceedings for the
date of the public hearing also are enclosed.
As you may know, the borrowing of loan funds by the City through the Iowa
Water Pollution Control Works Financing Program involves the same procedures
applicable to the issuance and sale of municipal bonds generally. In this instance, the
Iowa Finance Authority (the "Authority ") has agreed to make the City a low- interest loan
under the terms of a Loan and Disbursement Agreement, which will be secured and
evidenced by a Sewer Revenue Capital Loan Note that will be issued to the Authority at
the time the loan is closed.
The Authority has advised that all Revolving Fund loans are subject to additional
procedural requirements, most notably - compliance with prevailing wage (Davis- Bacon)
provisions. We'll coordinate with the Authority on your behalf to properly document this
loan program, but will defer to your engineers for contract compliance requirements.
Notice of this meeting must be published at least once in a legal newspaper,
printed wholly in the English language, published at least once weekly, and having
general circulation in the City. The date of publication is to be not less than four clear
days nor more than twenty days before the date of said public meeting. In computing
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
December 10, 2012
Page 2
time, the date of publication should be excluded. If the last day falls on Sunday, the
whole of the following Monday should be excluded.
Also enclosed is an extra copy of the proceedings to be filled in as the original and
returned to us for our transcript of the action taken, together with publisher's affidavit of
publication of notice of hearing. We are also enclosing an extra copy of the notice of
hearing to be delivered to the newspaper for publication purposes.
Should you have any questions concerning the enclosed proceedings or the SRF
Program, please don't hesitate to contact me.
Very ittuly y;, urs,
R. Mark Cory
FOR THE FIRM
RMC:dc
Enclosures
cc: Ken TeKippe
Barry Lindahl
00911149-1 \ 10422 -144
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of the City of Dubuque, State of Iowa.
Date of Meeting: December 17 , 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 $2,400,000 Sewer Revenue Capital Loan Notes
• Resolution fixing date for a meeting on the proposition to authorize a Loan and
Disbursement Agreement and the issuance of Notes to evidence the obligations of
the City thereunder.
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 C rk, City of D bu. owa
December 17 ,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
Council Member Lynch introduced the following
Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE
ISSUANCE OF NOT TO EXCEED $2,400,000 SEWER REVENUE CAPITAL LOAN
NOTES OF CITY OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION
OF NOTICE THEREOF ", and moved that the same be adopted. Council Member
Braig seconded the motion to adopt. The roll was called and the
vote was,
AYES: Rssnick, Sutton, Braig, Buol
NAYS:
Connors, Jones, Lynch
Whereupon, the Mayor declared the Resolution duly adopted as follows:
RESOLUTION NO. 348 -12
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AND DISBURSEMENT
AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $2,400,000 SEWER REVENUE CAPITAL LOAN
NOTES OF CITY OF DUBUQUE, IOWA, AND
PROVIDING FOR PUBLICATION OF NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa
should provide for the authorization of a Loan and Disbursement Agreement and the
issuance of Sewer Revenue Capital Loan Notes, in the amount of not to exceed
$2,400,000, as authorized by Sections 384.24A and 384.82, Code of Iowa, as amended,
for the purpose of providing funds to pay costs as hereinafter described; and
WHEREAS, the City has applied for a loan through the Iowa Water Pollution
Control Works Financing Program pursuant to which the Iowa Finance Authority has
agreed to purchase the City's Notes and has requested that such Notes be issued as a
single Note in a denomination equal to the total amount of the issue as authorized by
Chapter 384 Code of Iowa; and
WHEREAS, the Loan and Disbursement Agreement and Note shall be payable
solely and only out of the net earnings of the Municipal Sewer System and shall be a first
lien on the future net earnings of the Utility; and shall not be general obligations of the
City or payable in any manner by taxation and the City shall be in no manner liable by
2
reason of the failure of the net revenues to be sufficient for the payment of the Loan and
Disbursement Agreement and Note; and
WHEREAS, before a Loan and Disbursement Agreement may be authorized and
Sewer Revenue Capital Loan Notes issued to evidence the obligation of the City
thereunder, it is necessary to comply with the provisions of the City Code of Iowa, as
amended, and to publish a notice of the proposal and of the time and place of the meeting
at which the Council proposes to take action for the authorization of the Loan and
Disbursement Agreement and Notes and to receive oral and /or written objections from
any resident or property owner of the City to such action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That this City Council meet in the Historic Federal Building, 350 West
6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the seventh day of
January , 20 12, for the purpose of taking action on the matter of the
authorization of a Loan and Disbursement Agreement and the issuance of not to exceed
$2,400,000 Sewer Revenue Capital Loan Notes to evidence the obligations of the City
thereunder, the proceeds of which will be used to provide funds to pay the costs of
acquisition, construction, reconstruction, extending, remodeling, improving, repairing
and equipping all or part of the Municipal Sewer System, including those costs associated
with the acquisition and installation of microturbines, compression skid, heat recovery
units and related mechanical, electrical and site work at the Water & Resource Recovery
Center to utilize anaerobic digester gas in a combined heat and power facility.
Section 2. That the Clerk is hereby directed to cause at least one publication to be
made of a notice of said meeting, in a legal newspaper, printed wholly in the English
language, published at least once weekly, and having general circulation in said City, said
publication to be not less than four clear days nor more than twenty days before the date
of said public meeting on the issuance of the Notes.
form:
Section 3. The notice of the proposed action shall be in substantially the following
3
NOTICE OF MEETING OF THE CITY OF DUBUQUE,
IOWA ON THE MATTER OF THE PROPOSED
AUTHORIZATION OF A LOAN AND DISBURSEMENT
AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $2,400,000 SEWER REVENUE CAPITAL
LOAN NOTES, AND THE PUBLIC HEARING ON THE
AUTHORIZATION AND ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque,
Iowa, will hold a public hearing on the day of , 20 , at
o'clock .M., in the Historic Federal Building, 350 West 6th Street,
Dubuque, Iowa, at which meeting the City Council proposes to take additional action for
the authorization of a Loan and Disbursement Agreement by and between the City and
the Iowa Finance Authority, and the issuance to the Iowa Finance Authority of not to
exceed $2,400,000 Sewer Revenue Capital Loan Notes to evidence the obligations of the
City under said Loan and Disbursement Agreement, in order to provide funds to pay the
costs of acquisition, construction, reconstruction, extending, remodeling, improving,
repairing and equipping all or part of the Municipal Sewer System, including those costs
associated with the acquisition and installation of microturbines, compression skid, heat
recovery units and related mechanical, electrical and site work at the Water & Resource
Recovery Center to utilize anaerobic digester gas in a combined heat and power facility.
The Notes will not constitute general obligations or be payable in any manner by
taxation, but will be payable from and secured by the net revenues of the Municipal
Sewer System.
At the above meeting the City 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 City Council will at this meeting or at any
adjournment thereof, take additional action for the authorization of said Loan and
Disbursement Agreement and the issuance of Notes or will abandon the proposal to issue
the Notes.
This Notice is given by order of the City Council of the City of Dubuque, Iowa, as
provided by Sections 384.24A and 384.83, as amended.
Dated this
day of , 2012.
City Clerk.
(End of Notice)
-4-
PASSED AND APPROVED this 17th day of December
ATTEST:
, 2012.
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)
00911153 -1 \10422 -144