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Sewer Revenue Capital Loan Notes $2.4MMasterpiece 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 for 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 27, 2012 Finance Director Ken TeKippe recommends City Council approval of the proceedings for the public hearing on 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. I concur with the recommendation and respectfully request Mayor and City Council approval. brit44 krt., italy, Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager THE CITY OF Dui Masterpiece on the Mississippi Dubuque Seal All- America City 11111 2007 TO: Michael C. Van Milligen, City Manager FROM: Kenneth J TeKippe, Finance Director DATE: December 27,2012 SUBJECT: Proceedings for Public Hearing on the Issuance of not to exceed $2,400,000 Sewer Revenue Capital Loan Notes (State of Iowa Revolving Fund Loan) INTRODUCTION The purpose of this memorandum is to provide the suggested proceedings for the public hearing on 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 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 Notes to be closed. Immediately following, a resolution is to be introduced and adopted entitled "Resolution Instituting Proceedings to Take Additional Action for the Authorization of a Loan and Disbursement Agreement and the Issuance of $2,400,000 Sewer Revenue Capital Loan Notes." 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 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 City Council exceeded its authority. In the event the City Council decides to abandon the proposal then the form of resolution included in said proceedings should not be adopted. In this event, a motion merely be adopted to the effect that such proposal is abandoned. ACTION TO BE TAKEN The action step for City Council is to hold the public hearing and approve the resolution. A letter from attorney R. Mark Cory detailing information on the bond hearing is enclosed. Prepared by: KJT /e ml Enclosures cc: Barry Lindahl, City Attorney Jenny Larson, Budget Director Kevin Firnstahl, City Clerk Kenneth J. TeKippe, Finance Director Jennifer Larson, Budget Director 2 R. Mark Cory rcory @ahlerslaw.com AHLERS COONEY, P.C. 100 COURT AVENUE, SUITE 600 DES MOINES, IOWA 50309 -2231 PHONE: 515- 243 -7611 FAX: 515- 243 -2149 W W W.AHLERSLAW. COM December 26, 2012 Via E Mail and Overnight Delivery Mr. Ken TeKippe Finance 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 Ken: Direct Dial: (515)246 -0378 The public hearing 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 City Council to authorize the form of Loan and Disbursement Agreement and issue the Notes to the Iowa Finance Authority. 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 City Council decides to enter into the Agreement and issue the Notes, a form of resolution follows that should be introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional Action." 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 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 City 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. 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 26, 2012 Page 2 In the event the City Council decides to abandon the proposal then the form of resolution included in said proceedings should not be adopted. We would suggest that, in this event, a motion merely be adopted to the effect that such proposal is abandoned. The Resolution taking additional action also acknowledges and approves of the terms of the SRF loan program. As you know, the terms of the loan being offered to the City are established primarily by reference to two external sources: the Authority's administrative rules governing the SRF Program and, to a lesser extent, by the terms of the bonds issued by the Authority to fund the City's loan. These loan terms are not negotiable by individual borrowers, and the City's decision to participate in the SRF Program effectively commits it to accept a loan on the stated terms. 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 Should you have any questions concerning the enclosed proceedings, please don't hesitate to contact me. Very truly yours, R. Mark Cory FOR THE FIRM RMC:dc Enclosures cc: Jenny Larson 00911154 -1 \10422 -144 (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: January 7 , 2013. Time of Meeting: 6: 30 o'clock .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 • Public hearing on the authorization of a Loan and Disbursement Agreement and the issuance of Notes to evidence the obligation of the City thereunder. • Resolution instituting proceedings to take additional action. 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 Cl-, c, ity of Dubuque, owa January 7, 2013 The City Council of the City of Dubuque, Iowa, inet 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 Pro Tem Kevin Lynch in the chair, and the following named Council Members: Mayor Buol (via telephone); Karla Braig, Joyce Connors, Ric Jones, David Resnick, Lynn Sutton Absent: The Mayor announced that this was the time and place for the public hearing and meeting on the matter of 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 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, and that notice of the proposed action by the City Council to institute proceedings for the authorization of the Loan and Disbursement Agreement and the issuance of the Notes had been published pursuant to the provisions of Sections 384.24A, 384.82 and 384.83, as amended. The Mayor then asked the Clerk whether any written objections had been filed by any City resident or property owner to the proposal. The City Clerk advised the Mayor and the City Council that - °- written objections had been filed. The Mayor then called for oral objections to the proposal 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 City 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 AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $2,400,000 SEWER REVENUE CAPITAL LOAN NOTES ", and moved that the Resolution be adopted. was, Council Member Resnick seconded the motion. The roll was called and the vote AYES: Sutton, Braig, Buol, Connors, Jones, Resnick NAYS: Lynch Whereupon, the Mayor declared the measure duly adopted. RESOLUTION NO. 9 -13 RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $2,400,000 SEWER REVENUE CAPITAL LOAN NOTES 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 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 3 under said Loan and Disbursement Agreement, for the purpose of paying 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, and has considered the extent of objections received from residents or property owners as to said proposal 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, IOWA: Section 1. That this Council does hereby institute proceedings and takes 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 in the manner required by law of not to exceed $2,400,000 Sewer Revenue Capital Loan Notes for the foregoing purpose. Section 2. That this Council does hereby consent to the terms and conditions of the SRF Loan Program, which terms and conditions and the disclosures provided with respect thereto are hereby acknowledged, accepted and approved. Section 3. That the Clerk, with the assistance of the City Attorney and bond counsel, is hereby authorized and directed to proceed with the preparation of such documents and proceedings as shall be necessary to authorize the City's participation in the SRF Loan Program, to select a suitable date for final Council authorization of the required Loan and Disbursement Agreement and issuance of the Note to evidence the City's obligations thereunder, and to take such other actions as the Clerk shall deem necessary to permit the completion of a loan on a basis favorable to the City and acceptable to this Council. Section 4. 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 general fund and sewer capital fund moneys may be advanced from time to time for capital expenditures which are to be paid from the proceeds of the above loan agreement. The amounts so advanced shall be reimbursed from the proceeds of the Loan Agreement 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 loan amount authorized in this Resolution unless the same are for preliminary expenditures or unless another declaration of intention is adopted. 4 PASSED AND APPROVED this 7th day of January , 2013. Mayor Pro ATTEST: a �� 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. WITNESS my hand and the seal of the City hereto affixed this 8th day of January, 2013. (SEAL) 00912664 -1 \10422 -144 P PAP" City Cl, rk, City of Dubuque, tate of Iowa i ROLL CALL ORDER FOR MEETING OF 1/7/2013 Sutton, Braig, Buol, Connors, Jones, Lynch, Resnick CITY OF DUBUQUE,IOWA CITY COUNCIL MEETING Historic Federal Building 350 W. 6th Street January 7, 2013 Council meetings are video streamed live and archived at www.citvofdubuaue.orq /media and on Dubuque's CityChannel on the Mediacom cable system at Channel 8 (analog) and 97.2 (digital). WORK SESSION 5:00 PM - Dubuque County Regional Smart Plan Dubuque County Regional Smart Plan -MVM Memo, Staff Memo, Smart Plan Sect. 1, Smart Plan Sect. 2, Smart Plan Sect. 3, Smart Plan Presentation REGULAR SESSION 6:30 PM PLEDGE OF ALLEGIANCE MOMENT OF SILENCE May the spirit of wisdom keep our hearts and minds open as we endeavor to serve the common good. CONSENT ITEMS The consent agenda items are considered to be routine and non - controversial and all consent items will be normally voted upon in a single motion without any separate discussion on a particular item. If you would like to discuss one of the Consent Items, please go to the microphone and be recognized by the Mayor and-state the item you would like removed from the Consent Agenda for separate discussion and consideration. 1. Minutes and Reports Submitted Cable TV Commission of 12/5/12; City Council Proceedings of 12/17/12, Community Development Advisory Commission of 12/12/12; Historic Preservation Commission Education Task Force of 12/6/12; Safe Community Advisory Committee of 11/14/12; Proof of Publication for City Council Proceedings of 12/3/12; Proof of Publication for List of Claims and Summary of Revenues for Month Ending November 30, 2012 Suggested Disposition: Receive and File Cable TV Minutes 12/5, City Council Proceedings 12/17, CDAC Minutes 12/12, Historic Preservation TF Minutes 12/6, Safe Community Minutes 11/14, Proof - City Council Proceedings 12/3 Proof - List of Claims /Revenues 11/30 2. Notice of Claims and Suits Leroy Benson for vehicle damage and Joseph Schumacher for vehicle damage. Suggested Disposition: Receive and File; Refer to City Attorney Benson Claim, Schumacher Claim 3. Disposition of Claims Joseph Schumacher for vehicle damage Suggested Disposition: Receive and File; Concur ICAP Claims, 4. City Council 2011 Official Proceedings City Clerk submitting the Official City Council Proceedings for 2011. Suggested Disposition: Receive and File; Approve 2011 Official City Council Proceedings Pg. 1 IOWA WATER POLLUTION CONTROL WORKS FINANCING PROGRAM LOAN TERMS • Principal amount authorized ... Determined in accordance with City's application. • Interest rate Currently 1.75 %. • Interest payment dates Typically June 1 and December 1 of each year, unless outstanding parity bonds require otherwise. • Principal repayment dates Typically June 1 of each year, commencing not later than one year after the completion of the project being funded with the SRF loan. • Term of loan Typically twenty or thirty years from date of completion of project. • Optional redemption Principal of the loan may be called for redemption and paid before maturity on any date following receipt of written consent by the Iowa Finance Authority, from any funds regardless of source, in whole or from time to time in part, by giving thirty days' notice of redemption by certified or registered mail. The terms of redemption shall be par, plus accrued interest to date of call. The loan also is subject to optional redemption in the event all or substantially all of the Project is damaged or destroyed, at a price of par plus accrued interest. • Initiation fee 0.50% of the principal amount borrowed, which may be deducted from the loan proceeds at the time of closing. • Annual servicing fee 0.25% of the outstanding principal balance, payable each year at the time principal is paid. • Rate covenant Sewer user charges must be established at a level which produces and maintains net revenues at a level not less than 110% of principal and interest falling due in the same year. • Other covenants No reserve fund or improvement fund is required for the SRF loan. SRF loan may be subordinate to outstanding sewer revenue obligations with consent of Iowa Finance Authority. • Disbursement schedule Loan proceeds are disbursed following the receipt by the Iowa Finance Authority of a completed disbursement request form. • Source of loan funds Iowa Finance Authority ( "SRF Program Bonds ") Iowa State Revolving Fund Revenue Bonds • SRF Program Trustee Wells Fargo Bank, National Association (contact person: Chitra Patel) (telephone: 312/781 -0727) (e -mail: Chitra.N.Patel @wellsfargo.com) hold a; public hearing related mechanical, provided by Sections on the 7th day of electrical and site work 384.24A and 3$4.83, as January 2013 at 6 :30 at the Water & amended. o'clock P.M., in the Resource Recovery Dated this 21st day of Historic Federal'Build- Center to utilize December, 2012. ing, 350 West 6th anaerobic digester gas Kevin S. Firnstahl,l; Street, Dubuque, lowa in a combined heat and City Clerk at which meeting the power facility. The it 12121 City Council proposes Notes will not to take additional constitute ;general obli action for the gations or; be payable' authorization of a Loan in any manner by and Disbursement taxation, but will be Agreement by and payable from and between the City and secured by the net rev - the Iowa Finance enues of the Municipal Authority, and the Sewer System. issuance to the Iowa At the above meeting Finance Authority of the City Council shall NOTICE OF MEETING not to exceed receive oral or written OF THE CITY OF $2,400,000 Sewer ii objections from any /3,usuQIJE, IOWA ON Revenue Capital Loan resident or property THE MATTER OF THE Notes to evidence the owner of the City, to PROPOSED obligations of the City the above action. After AUTHORIZATION OF under said Loan and all objections have A LOAN AND Disbursement Agree- been received and DISBURSEMENT ment, : in order to considered, the City AGREEMENT AND provide funds to pay Council will at this THE ISSUANCE OF the costs of acqui- meeting or at any NOT TO EXCEED sition, construction, adjournment thereof, $2,400,000rSEWER reconstruction, extend- take additional action REVENIJE[CAPITAL ing, remodeling, im- for the authorization of LOAN NOTES, AND s proving, repairing and said Loan and Dis' THE P'JIBLIC'HEARING equipping all or part of bursement Agreement ON TIE the Municipal Sewer and the issuance of AUTHORIZATION System, including Notes or will abandon AND ISSUANCE those costs associated the proposal to issue' - THEREOF with the acquisition the Notes. PUBLIC NOTICE is and installation of This Notice is given by hereby given that the microturbines, ' corn- order of the City City Council of the City pression skid, heat Council of the City of of Dubuque, Iowa, will recovery units' and Dubuque, l Iowa, as STATE OF IOWA DUBUQUE COUNTY {SS: 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: December 21, 2012, and for which the charge is $32.54. 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. R K. WE:;a_S'