Water Revenue Capital Loan Notes~.
THE CITY OF
i
DLTB ,l CTE
Musterpiece cm the Mississippi
MEMORANDUM
July 31, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings for 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 approval of the resolution to issue
$1,037,000 Water Revenue Capital Loan Notes from the Iowa Drinking Water State
Revolving Fund Program. This 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 loan at the February 20, 2007 meeting.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
l~~ ~ f ~~
Michael 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 ~~~~-,,..o"~ti ~- , ~ ~~
SUBJECT: Proceedings for Public Hearing on the Issuance of $1,037,000
Water Revenue Capital Loan Notes (Drinking Water State Revolving Fund
Loan)
DATE: July 26, 2007
The purpose of this memorandum is to provide the suggested proceedings for the public
hearing on the issuance of $1,037,000 Water Revenue Capital Loan Notes from the
Iowa Drinking Water State Revolving Fund Program (DWSRF). 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 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 Bonds 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 $1,037,000 Drinking Water Revenue Capital Loan
Notes."
In the event the Council decides to abandon the proposal to issue said loans, then the
form of resolution included in said proceedings should not be adopted. In this event, a
motion needs to be adopted to the effect that such loan proposal is abandoned.
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 issue the loan, 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 Council exceeded its authority.
The requested action steps for City Council are to hold the public hearing and approve
the resolution. A letter from attorney William Noth detailing information on the loan is
enclosed.
Future Council action to authorize issuance of the Notes will be requested once the City
is ready to begin drawing down the loan proceeds to pay project costs.
KT/jg
Attachments
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Jeanne Schneider, City Clerk
AHL,~RS COON~Y, 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:
(515)246-0332
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, dam before the date of said public meeting. In computing
WISHARO & GAILY - 1888; GUERNSEY & GAILY - 1893; GAILY & STIPP - 1901; STIPP, PERRY. BANNISTER b STARZINGER - 1914: BANNISTER, CARPENTER,
AHLERS & GOONEY - 195D: AHLERS. GOONEY, DORWEILER. ALLBEE, HAYNIE 8 SM{TH - 1974; AHLERS. GOONEY, DORWEILER. HAYNIE. SMITH &ALLBEE. P.C. - 1990
July 5, 2007
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 567 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\543851.11WP\10422079
ORIGINAL
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body
Date of Meeting:
Time of Meeting:
Place of Meeting:
The City Council of Dubuque, Iowa.
August 6 , 2007.
6 = 3 0 o'clock P .M.
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
- 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 12 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.
~
Jeanne F. Schneider~
City Clerk, Dubuque, Iowa
August 7 , 2007
The City Council of Dubuque, Iowa, met in R e g u 1 a r session, in the Auditorium,
Carnegie-Stout Public Library, Dubuque, Iowa, at 6:30 o'clock P .M., on the
above date. There were present Mayor Roy D . Buo 1 , in the
chair, and the following named Council Members:
Karla Braig, Patricia Cline, Joyce Connors,
Ric Jones, Kevin Lynch, Ann Michalski
Absent:
None
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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, 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 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, and that notice
of the proposed action by the 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 and 384.83 of the Code of Iowa, as
amended.
The Mayor then asked the City Clerk whether any written objections had been
filed by any City resident or properly owner to the proposal. The City Clerk advised the
Mayor and the Council that No written objections had been filed. The Mayor
then called for oral objections to the proposal and None 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)
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The Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member Joyce C o n n o r s 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 $1,037,000 WATER REVENUE CAPITAL LOAN NOTES", and
moved:
0
that the Resolution be adopted.
to ADJOURN and defer action on the Resolution and
the proposal to institute proceedings to the meeting
to be held at o'clock .M. on the
day of , 2007, at this place.
Council Member Patricia cline
was called and the vote was,
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 420-07
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE AUTHORIZATION OF A LOAN
AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF
$1,037,000 WATER REVENUE CAPITAL LOAN NOTES
seconded the motion. The roll
AYES: Buol, Cline, Connors, Jones,
Braig, Lynch, Michalski
NAYS: None
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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, 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, for the purpose of paying 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, 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, the Iowa Finance Authority, the Iowa Department of Natural Resources
and Wells Fargo Bank, N.A. and the issuance to the Iowa Finance Authority in the
manner required by law of $1,037,000 Water Revenue Capital Loan Notes for the
foregoing purpose.
Section 2. That this Council does hereby consent to the terms and conditions of
the DWSRF Loan Program, which terms and conditions and the disclosures provided with
respect thereto are hereby acknowledged, accepted and approved.
Section 3. That the City 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 DWSRF 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.
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PASSED AND APPROVED this 6th day of August, 2007.
ATTEST:
Mayor
Attest:
City Clerk
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
stn day of August , 2007.
C/ ~ ~
ity Clerk, Dubuque, Iowa
SEAL
DCORNELL\543855.1 \WP\ 10422079
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