Water Revenue Capital Loan NotesTHE CITY OF
DLTB E
Masterpiece on the Mississippi
MEMORANDUM
July 11, 2007
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 $1,037,000 Water
Revenue Capital Loan Notes (Drinking Water State Revolving Fund Loan)
Finance Director Ken TeKippe is recommending that a public hearing be established for
August 6, 2007 on the proposition of issuing $1,037,000 of Water Revenue Capital Loan
Notes. The loan funds will be used for the rehabilitation of the walls, floors and concrete
covers of two clear well reservoirs at Eagle Point Water Plant.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~;~
Mi hael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
THE CITY OF
DUB E
~~
Memorandum
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director ~ - ~ ~~`~"~`~
SUBJECT: Proceedings to Set Public Hearing on the Issuance of $1,037,000 Water
Revenue Capital Loan Notes (Drinking Water State Revolving Fund
Loan)
DATE: July 9, 2007
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 $1,037,000
Water Revenue Capital Loan Notes from the Iowa Drinking Water State Revolving Fund
Program (DWSRF). The hearing called by the enclosed proceedings will permit the City
to take advantage of a 3% fixed interest rate for 20 years.
The loan funds will be used for the rehabilitation of the walls, floors and concrete covers
of two clear well reservoirs at Eagle point Water Plant. The City Council approved
applying for the DWSRF loan at the February 20, 2007 meeting.
The requested action step for City Council is to adopt the attached resolution fixing the
date of August 6, 2007 for a public hearing on the proposition of issuing $1,037,000
Water 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/kjt
Enclosures
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Jeanne Schneider, City Clerk
AHLERS GOONEY, P.C.
ATTORNEYS AT LAW
100 COURT AVENUE • SUITE 600
DES MOINES, IOWA 50309-2231
PHONE 515-243-7611
FAX: 515-243-2149
WWW.AHLERSLAW.COM
WILLIAM J. NOTH
WNOTH~AHLERSLAW.COM
July 5, 2007
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
RE: $1,037,000 Water Revenue Capital Loan Notes
(Drinking Water State Revolving Fund Loan)
Dear Mr. TeKippe:
Direct Dial:
(5151246-0332
At the request of Jenny Larson, I am enclosing 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 Note and ordering publication of a notice of hearing consistent
with the provisions of Code Sections 384.24A and 384.83. Proceedings for the date of
the public hearing also are enclosed.
As you may recall, the borrowing of loan funds by the City through the Iowa
Drinking Water State Revolving Fund Program ("DWSRF 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 aloes-interest loan under the
terms of a Loan and Disbursement Agreement, that loan will be secured and evidenced by
a Water 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 davs before the date of said public meeting. In computing
WISHARD & GAILY - 1888; GUERNSEY & GAILY - 1893; GAILY & STIPP - 1901: ST1PP, PERRY, BANNISTER & STARZINGER - 1914: BANNISTER, CARPENTER,
AHLERS ~ GOONEY - 1950: AHLERS. GOONEY, DORWEILER. ALLBEE. HAYNIE $ SMITH - 1974; AHLERS. GOONEY, DORWEILER, HAYNIE. SMITH 8 ALLBEE. P.C. - 1990
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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
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.
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 Council to authorize the form of Loan and Disbursement Agreement and issue the
Notes to the 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
Council decides to enter into the Agreement and issue the Note, 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 davs 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.
In the event the 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 DWSRF Program, a general description of which is enclosed for your
review. As you may know, the terms of the loan being offered to the City are established
primarily by reference to two external sources: the DNR's administrative rules governing
the DWSRF Program (set forth in s67 Iowa Administrative Code, Chapter 44) and, to a
lesser extent, by the terms of the bonds issued by the Authority to fund the City's loan.
- July 5, 2007
Page 3
These loan terms are not negotiable by individual borrowers, and the City's decision to
participate in the DWSRF Program effectively commits it to accept a loan on the stated
terms.
Should you have any questions concerning the enclosed proceedings or the
DWSRF Program, please don't hesitate to contact me.
Yours very truly,
V~
William J. Noth
WJN:dc
encl.
cc: Barry Lindahl (w/encl.)
Jeanne Schneider (w/originals)
DCORNELL\543851.1 \WP\ 10422079
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: , 2007.
Time of Meeting: o'clock .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:
$1,037,000 Water 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 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.
City Clerk, Dubuque, Iowa
2007
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
on the above date. There were present Mayor
and the following named Council Members:
session, in the
o'clock .M.,
in the chair,
Absent:
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Council Member Patricia Cline introduced the following
Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE
ISSUANCE OF $1,037,000 WATER REVENUE CAPITAL LOAN NOTES OF
DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE
THEREOF", and moved that the same be adopted. Council Member
Karla Braig seconded the motion to adopt. The roll was called and the
vote was,
AYES:
Braig, Buol, Cline, Connors, Jones
Lynch, Michalski
None
NAYS:
Whereupon, the Mayor declared the Resolution duly adopted as follows:
RESOLUTION NO. 391-07
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT
AND THE ISSUANCE OF $1,037,000 WATER 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 Water Revenue Capital Loan Notes, in the amount of $1,037,000, as
authorized by Sections 384.24A and 384.83, 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 Drinking Water State
Revolving Fund 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
Code of Iowa; and
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WHEREAS, the Loan and Disbursement Agreement and Note shall be payable
solely and only out of the net earnings of the Municipal Water Utility 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
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
Water Revenue Capital Loan Notes issued to evidence the obligation of the City
thereunder, it is necessary to comply with the provisions of the 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 Council meet in the Auditorium, Carnegie-Stout Public
Library, Dubuque, Iowa, at 6 = 3 0 o'clock P .M., on the 6th day of
Auq u s t , 2007, for the purpose of taking action on the matter of the
authorization of a Loan and Disbursement Agreement and the issuance of $1,037,000
Water 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 Water Utility, including those costs associated with the
restoration of two deteriorating concrete clear well storage reservoirs.
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 $1,037,000 WATER 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 6th day of August, 2007, at 6:30 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 $1,037,000 Water 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
Water Utility, including those costs associated with the restoration of two deteriorating
concrete clear well storage reservoirs. 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 Water Utility.
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 City Council of Dubuque, Iowa, as provided
by Sections 384.24A and 384.83 of the Code of Iowa, as amended.
Dated this 20th day of July, 2007.
/s/Jeanne F. Schneider, CMC
City Clerk
1 t 7/20
PASSED AND APPROVED this 16 t n day of J u 1 y 2007.
Roy D. Buol
Mayor
ATTEST:
Jeanne F. Schneider
City Clerk
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CIG-3
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
day of _ , 2007.
SEAL
DCORNELL\543853. I1WP\10422079
City Clerk, Dubuque, Iowa
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