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'