Sewer Rev. Cap. Loan Notes
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MEMORANDUM
November 14, 2006
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$253,850 Sewer Revenue Capital Loan Notes
Finance Director Ken TeKippe recommends the City Council set a public hearing for
December 4, 2006 regarding the issuance of not to exceed $253,850 in Sewer Revenue
Capital Loan Notes to be used for the rehabilitation of sanitary sewers in connection
with the North Fork Catfish Creek Project and the Water Pollution Control Plant Study.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
(l1~v1 ~~111'
Michael C. Van Milligen -
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe. Finance Director
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i5'G'~~E
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Memorandum
TO: Michael C. Van Milligen, City Manager
Kenneth J TeKippe, Finance Director ~cJ' {j' ~C!.:~
SUBJECT: Proceedings to Set Public Hearing on the Issuance of not to exceed
$253,850 Sewer Revenue Capital Loan Notes
FROM:
DATE:
November 14, 2006
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 $253,850 Sewer Revenue Capital Loan Notes (interim financing) from the State
of Iowa Revolving Fund Loan (SRF). The hearing called by the enclosed proceedings
will permit the City to take advantage of the 0% interest interim loan program, which
may be rolled into the future long-term SRF loan.
The loan funds will be used for the rehabilitation of sanitary sewers in connection with
the North Fork Catfish Creek Project ($168,850) and the Water Pollution Control Plant
Study ($85,000).
The City Council approved applying for the SRF loan at the November 6, 2006 meeting.
Information on the application was detailed in October 31,2006 memos.
The requested action step for City Council is to adopt the attached resolution fixing the
date of December 4, 2006 for a public hearing on the proposition of issuing not to
exceed $253,850 in Sewer Revenue Capital Loan Notes of Dubuque, Iowa and
providing for publication of notice. A letter from attorney William Noth detailing
information on the bond hearing is enclosed.
KJT/jmg
Enclosures
cc: Barry Lindahl, City Attorney
Dawn Lang and Jenny Larson, Budget Directors
Jeanne Schneider, City Clerk
AHLERS ~COONEY, P.C.
ATTORNEYS AT LAW
100 COURT AVENUE. SUITE 600
DES MOINES. IOWA 50309-2231
PHONE 515-2~-7611
FAX, 515-2~-2149
WWW.AHlERSlAW.COM
WilLIAM J. NOTH
WNOTH@AHlERSLAW.COM
Direct Dial:
(515)246-0332
November 10, 2006
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
RE: $253,850 Sewer Revenue Capital Loan Notes
(Interim financing)
(State ofIowa Revolving Fund Loan)
Dear Mr. TeKippe:
We have now prepared and are enclosing herewith suggested proceedings to be
acted upon by the Council in fixing the date of a meeting on the proposition to issue the
above mentioned Capital Loan Notes and ordering publication of a notice of hearing
consistent with the provisions of Code Sections 384.24A and 384.82.
As we understand it, the City has qualified for a 0% interim planning and design
loan from the SRF program to be applied to the engineering and planning for certain
projects. Following design otyour project, additional hearingls)will be necessary to
obtain borrowing authority over and above the amount covered herein. The hearing
called by the enclosed proceedings will permit the City to take advantage of the 0%
interim loan program, which may be rolled into the future long-term SRF loan.
WISHARD & BAllY- 1888, GUERNSEY & BAllY-1893, BAILV& STIPP - 1901: STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER. CARPENTER.
AHLERS & COONEY ~ 1950: AHLERS. CoONEY, DORWEllER. ALLBEE. HAYNIE & SMITH - 1974, AHLERS. COONEY, DORWE1LER. HAYNIE. SMrTH & ALLBEE. P.C. ~ 1990
November 10, 2006
Page 2
As you may recall, the borrowing of loan funds by the City through the Iowa
Sewage Treatment Works Financing Program involves the same procedures applicable to
the issuance and sale of municipal bonds generally. Although the Iowa Department of
Natural Resources ("DNR"), acting jointly with the Iowa Finance Authority (the
"Authority"), has agreed to make the City a loan under the terms of a Loan and
Disbursement Agreement, that loan 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.
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
time, the date of publication should be excluded. If the last day falls on Sunday, the
whole of the following Monday should be excluded.
Please keep us advised of the schedule so we can provide the necessary
proceedings to complete this loan.
Also enclosed is an extra copy of the proceedings to be filled in as the original and
certified back to this office, 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. A certificate to attest the proceedings is also
enclosed.
We will prepare and send to you proceedings for the hearing and for approving this
interim loan. Should you have any questions concerning the enclosed proceedings or the
SRF Program, please don't hesitate to contact me.
Yours very truly,
~
William J. Noth
WJN:dc
encl.
cc:
Barry Lindahl
Dawn Lang
Jeanne Schneider
DCORNELL\5 \4391. IIWPI\0422076
Council Member Michalski 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 $253,850 SEWER REVENUE CAPITAL LOAN
NOTES OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF
NOTICE THEREOF", and moved that the same be adopted. Council Member
Lynch
vote was,
seconded the motion to adopt. The roll was called and the
AYES: Braig, Buol, Cline, Connors, Jones,
Lynch, Michalski
NAYS: None
Whereupon, the Mayor declared the Resolution duly adopted as follows:
RESOLUTION NO. 559-06
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT
AND THE ISSUANCE OF NOT TO EXCEED $253,850 SEWER
REVENUE CAPITAL LOAN NOTES 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 $253,850,
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 Sewage Treatment
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 of the
City 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
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City or payable in any manner by taxation and the City shall be in no manner liable by
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 I . That this Council meet in the Auditorium, Carnegie-Stout Public
Library, Dubuque, Iowa, at 5 = 3 0 o'clock P .M., on the 4th day of
December , 2006, 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
$253,850 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 undertaking of a Plan of Action Study for the Water Pollution Control Plant, and
the rehabilitation of sanitary sewers in connection with the North Fork Catfish Creek
Project.
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.
Section 3. The notice of the proposed action shall be in substantially the following
form:
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NOTICE OF MEETING OF THE CITY COUNCIL 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 $253,850 SEWER
REVENUE CAPITAL LOAN NOTES, AND THE PUBLIC HEARING
ON THE AUTHORIZATION AND ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa,
will hold a public hearing on the 4th day of December , 2006, at 6 : 3 0 o'clock
P.M., in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at which
meeting the Council proposes to take additional action for the authorization of a Loan and
Disbursement Agreement by and between the City, the Iowa Finance Authority, the Iowa
Department of Natural Resources and Wells Fargo Bank, N.A. and the issuance to the
Iowa Finance Authority of not to exceed $253,850 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 undertaking of a Plan of Action
Study for the Water Pollution Control Plant, and the rehabilitation of sanitary sewers in
connection with the North Fork Catfish Creek Project. 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 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 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 Council of Dubuque, Iowa, as provided by
Sections 384.24A and 384.83 of the City Code of Iowa, as amended.
Dated this 24th day of November , 2006.
--/ 1
/City Clerk of Dubuque, Iowa
(End of Notice)
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PASSED AND APPROVED this 20th day of November , 2006.
I!/~
Mayor
ATTEST:
-~
ity Clerk
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CERTIFICATE
STATE OF IOWA )
SS
COUNTY OF DUBUQUE )
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is
a true and complete copy of the portion of the corporate records of said Municipality
showing proceedings of the Council, and the same is a true and complete copy of the
action taken by said Council with respect to said 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 said 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 said 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 said 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 said Municipality hereto affixed this 21 s t
day of November , 2006.
~, ~ ~..
ity Clerk, Dubuque, Iowa
SEAL
DCORNELL\514392.11 WP\ 10422000
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CIG-18
2-91
STATE OF IOWA )
SS
COUNTY OF DUBUQUE )
I, the undersigned, do hereby certify that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of
said City, I have caused a
NOTICE OF MEETING OF THE CITY COUNCIL 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 $253,850 SEWER
REVENUE CAPITAL LOAN NOTES, AND THE PUBLIC HEARING
ON THE AUTHORIZATION AND ISSUANCE THEREOF
of which the clipping annexed to the publisher's affidavit hereto attached is in words and
figures a correct and complete copy, to be published as required by law in the Telegraph
Herald, a legal newspaper published at least once weekly, printed wholly in the English
language, published regularly and mailed through the post office of current entry for more
than two years and which has had for more than two years a bona fide paid circulation
recognized by the postal laws of the United States, and has a general circulation in the
City, and that said Notice was published in said newspaper in all of the issues thereof
published and circulated on the following date:
November 24_ _ , 2006
WITNESS my official signature at Dubuque, Iowa, this 2 8th day of
November .2006.
.rte//i''~/~f= '~~/f//'./fi%-c-//*/
ity Clerk
(SEAL)
DCORNELL1514394. i\WP\10422000
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: November 20 , 2006.
Time of Meeting: 6 : 3 0 o'clock P .M.
Place of Meeting: Auditorium, Carnegie-Stout Public Library, 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 said
meeting is as follows:
Not to exceed $253,850 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 1 o 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 said governmental body.
,= '~ ,lam' -;/~~ ~ ~:.r~~:%,~Jr' ,li,~_,./
ity Clerk, Dubuque, Iowa
November 21
The City Council of Dubuque, Iowa, met in R e g u l a r
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
the above date. There were present Mayor R o y B u o l
and the following named Council Members:
2006
session, in the
5 : 3 0 o'clock P .M., on
in the chair,
Karla Braig, Patricia Cline, Joyce Connors,
Ric Jones, Kevin Lynch, Ann Michalski
Absent: Non e
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