HomeMy WebLinkAboutA002 - Proceedings from Bond Counsel dated July 26, 2016 Ames/419370-50/1�"/z-Sewer Rev
MINUTES TO SET DATE FOR HEARING
ON ENTERING INTO A LOAN AND
DISBURSEMENT AGREEMENT
419370-50 (N/I)
Ames, Iowa
July 26, 2016
The City Council of the City of Ames, Iowa, met on July 26, 2016, at six o'clock p.m., at
the City Hall Council Chambers, 515 Clark Avenue, in the City. The Mayor presided and the
roll was called showing the following members of the Council present and absent:
Present: Beatty-Hansen, Betcher, Corrieri, Gartin, Nelson, Orazem
Absent: None.
Council Member Betcher introduced a resolution hereinafter next set out and moved its
adoption, seconded by Council Member Nelson; and after due consideration thereof by the
Council, the Mayor put the question upon the adoption of the said resolution and the roll being
called, the following named Council Members voted:
Ayes: Beatty-Hansen, Betcher, Corrieri, Gartin,Nelson, Orazem
Nays: None.
Whereupon, the Mayor declared the resolution duly adopted as follows:
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DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/419370-50/1`%:-Sewer Rev
RESOLUTION NO. 16-426
Resolution to fix a date for a public hearing on a proposal to enter into a Sewer
Revenue Loan and Disbursement Agreement and to borrow money thereunder in
a principal amount not to exceed $797,000
WHEREAS, the City of Ames (the "City"), in Story County, State of Iowa, did
heretofore establish a Municipal Sanitary Sewer System (the "Utility") in and for the City which
has continuously supplied sanitary sewer service in and to the City and its inhabitants since its
establishment; and
WHEREAS, the management and control of the Utility are vested in the City Council
(the "Council") and no board of trustees exists for this purpose; and
WHEREAS, pursuant to a prior resolution (the "Outstanding Bond Resolution") of the
Council, the City has heretofore issued its Sewer Revenue Bond, SRF Series 2012, dated
November 16, 2012 (the "Outstanding Bond") in the principal amount of$3,121,000, a portion
of which remains outstanding; and
WHEREAS, pursuant to the Outstanding Bond Resolution, the City reserved the right to
issue additional obligations payable from the net revenues of the Utility and ranking on a parity
with the Outstanding Bond; and
WHEREAS, the City now proposes to enter into a Sewer Revenue Loan and
Disbursement Agreement (the "Agreement") in a principal amount not to exceed $797,000
pursuant to the provisions of Section 384.24A of the Code of Iowa for the purpose of paying the
cost, to that extent, of planning, designing and constructing improvements and extensions to the
Utility, and it is necessary to fix a date of meeting of the Council at which it is proposed to take
action to enter into the Agreement and to give notice thereof as required by such law;
In
NOW, THEREFORE, Be It Resolved by the City Council of the City of Ames, Iowa, as
follows:
Section 1. This Council shall meet on the 9th day of August, 2016, at the City Hall
Council Chambers in the City, at six o'clock p.m., at which time and place a hearing will be held
and proceedings will be instituted and action taken to enter into the Agreement.
Section 2. The City Clerk is hereby directed to give notice of the proposed action on
the Agreement setting forth the amount and purpose thereof, the time when and place where the
said meeting will be held, by publication at least once and not less than four nor more than
twenty days before the meeting, in a legal newspaper which has a general circulation in the City.
The notice shall be in substantially the following form:
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DORSEY & WHITNEY LLP,ATTORNEYS, DES MOINES, IOWA
Ames/4193 70-50/1"%-Sewer Rev
NOTICE OF PROPOSED ACTION TO INSTITUTE
PROCEEDINGS TO ENTER INTO A LOAN AND DISBURSEMENT AGREEMENT
IN A PRINCIPAL AMOUNT NOT TO EXCEED $797,000
(SEWER REVENUE)
The City Council of the City of Ames, Iowa, will meet on the 9th day of August, 2016, at
the City Hall Council Chambers, 515 Clark Avenue, in the City, at six o'clock p.m., for the
purpose of instituting proceedings and taking action to enter into a loan and disbursement
agreement (the "Agreement") and borrow money in a principal amount not to exceed $797,000,
for the purpose of paying the cost, to that extent, of planning, designing and constructing
improvements and extensions to the Municipal Sanitary Sewer System.
The Agreement will not constitute a general obligation of the City, nor will it be payable
in any manner by taxation but, together with the City's outstanding Sewer Revenue Bond, SRF
Series 2012, dated November 16, 2012, and any additional obligations of the City as may be
hereafter issued and outstanding from time to time ranking on a parity therewith, will be payable
solely and only from the Net Revenues of the Municipal Sanitary Sewer System of the City.
At that time and place, oral or written objections may be filed or made to the proposal to
enter into the Agreement. After receiving objections, the City may determine to enter into the
Agreement, in which case, the decision will be final unless appealed to the District Court within
fifteen(15) days thereafter.
By order of the City Council of the City of Ames, Iowa.
Diane R. Voss
City Clerk
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DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/419370-50/151%-Sewer Rev
Section 3. Pursuant to Section 1.150-2 of the Income Tax Regulations (the
"Regulations") of the Internal Revenue Service, the City declares (a) that it intends to undertake
the Project which is reasonably estimated to cost at least $797,000, (b) that other than (i)
expenditures to be paid or reimbursed from sources other than the issuance of bonds, notes or
other obligations (the "Bonds"), or (ii) expenditures made not earlier than 60 days prior to the
date of this Resolution or a previous intent resolution of the City, or (iii) expenditures amounting
to the lesser of$100,000 or 5% of the proceeds of the Bonds, or (iv) expenditures constituting
preliminary expenditures as defined in Section 1.150-2(f)(2) of the Regulations, no expenditures
for the Project have heretofore been made by the City and no expenditures will be made by the
City until after the date of this Resolution or a prior intent resolution of the City, and (c) that the
City reasonably expects to reimburse the expenditures made for costs of the City out of the
proceeds of the Bonds. This declaration is a declaration of official intent adopted pursuant to
Section 1.150-2 of the Regulations.
Section 4. All resolutions or parts of resolutions in conflict herewith are hereby
repealed to the extent of such conflict.
Section 5. This resolution shall be in full force and effect immediately upon its
adoption and approval, as provided by law.
Passed and approved this July 26, 2016.
Mayor
Attest:
City Clerk
On motion and vote, the meeting adjourned.
Mayor
Attest:
City Clerk
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DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/419370-50/I S"/_-Sewer Rev
STATE OF IOWA
COUNTY OF STORY SS:
CITY OF AMES
I, the undersigned, Clerk of the City of Ames, do hereby certify that attached hereto is a
true and correct copy of the proceedings of the City Council relating to fixing a date for hearing
on the City Council's proposal to take action in connection with a Sewer Revenue Loan and
Disbursement Agreement.
WITNESS MY HAND this 26 day of July, 2016.
City Clerk
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DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/419370-50/151 j/2-Sewer Rev
STATE OF IOWA
COUNTY OF STORY SS:
CITY OF AMES
I, the undersigned City Clerk, do hereby certify that the City of Ames is organized and
operating under the provisions of Title IX of the Code of Iowa and not under any special charter
and that the City is operating under the Mayor-Council form of government and that there is not
pending or threatened any question or litigation whatsoever touching the incorporation of the
City, the inclusion of any territory within its limits or the incumbency in office of any of the
officials hereinafter named.
And I do further certify that the following named parties are officials of the City as
indicated:
Ann H. Campbell Mayor
Diane R. Voss City Clerk
Steven L. Schainker City Manager
Roger Wisecup City Treasurer
Duane Pitcher Finance Director
Peter Orazem Council Member/Mayor Pro Tem
Bronwyn Beatty-Hansen Council Member
Gloria Betcher Council Member
Amber Corrieri Council Member
Tim Gartin Council Member
Chris Nelson Council Member
WITNESS MY HAND this 26th day of July, 2016.
City Clerk
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA
Ames/419370-50/151%-Sewer Rev
STATE OF IOWA
COUNTY OF STORY SS:
CITY OF AMES
I, the undersigned, City Clerk of the City of Ames, Iowa (the "City"), do hereby certify
that the City established the Municipal Sanitary Sewer System (the "Utility"), and that the Utility
has been in continuous operation by the City since its establishment as aforesaid in supplying
sanitary sewer service to the City and its inhabitants.
I further certify that the management and control of the Utility are vested in the Council
of the City, and that no board of trustees exists which has any part of the control and
management of such Utility.
I further certify that the City has no bonds or other obligations of any kind now
outstanding which are secured by and payable from the revenues derived from the operation of
the Utility, except as follows:
Date Type Principal Amount Maturity
Outstanding
November 16, 2012 Sewer Revenue Bonds $2,076,250 June 1, 2033
(Attach here a separate sheet listing any other outstanding obligations of the
City secured by and payable from the revenues of the Utility excluding the
proposed issue.)
I further certify that the annual earnings and annual operating expenses in connection
with the operation of the Utility for each of the years indicated have been as follows:
Operation and Net Revenues from
Maintenance Expenses Operation Before
Fiscal (do not include Bond Payment of Capital
Year Debt Service and Capital Expenditures and Bond
Ending Gross Revenues Expense Items) Debt Service
2015 $8.267.051 $5,334,578 $2,932.473
2016 $ $ $ 2016 Not Available
I do further certify that the rates which were in effect for services furnished to customers
by the Utility during the aforementioned fiscal years were as follows:
(Attach here a copy of each of the rate schedules in effect during; such fiscal
years).
DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/419370-50/15"/-Sewer Rev
I further certify that the budgeted annual earnings and annual operating expenses in
connection with the operation of the Utility for the Fiscal Year ending June 30, 2017 are as
follows:
Operation and Net Revenues from
Maintenance Expenses Operation Before
Fiscal (do not include Bond Payment of Capital
Year Debt Service and Capital Expenditures and Bond
Ending Gross Revenues Expense Items) Debt Service
2017 $8.672,200 $5,388,073 $3,284,127
I do further certify that attached hereto is a true, correct and complete copy of the present
rate ordinance for the Utility.
(Attach here a copy of the current rate ordinance).
WITNESS MY HAND this (G day of , 2016.
. UU�
City Clerk
DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA
City of Ames Sewer Rate Schedule
Sewer Rates and Billing
FY 2014-15
Each user shall pay for services provided by the City based on his/her use of the treatment works
as determined by water meter readings or other appropriate methods acceptable to the City. The
minimum charge shall be $10.20. In addition, each user shall be billed $2.61 per 100 cu. ft. of
usage.
FY 2015-16
Each user shall pay for services provided by the City based on his/her use of the treatment works
as determined by water meter readings or other appropriate methods acceptable to the City. The
minimum charge shall be $10.71. In addition, each user shall be billed $2.74 per 100 cu. ft. of
usage.
Industrial Waste Charges may apply per terms of attached ordinance.
ORDINANCE NO. 4215
tN ORDNANCE TOAMENl3'I'HEMUNIC::IPALCODEOF'IHECITYOF
MI' .S, IONVA, BY REPEALING C IAPTER -M. SE COON 201(1)
SECTION 204(3). ENACTING A NEVV CHAPTER 28, SECTION
20I(t)(b)(i0(a)(b),2(b)(ii)(ayhy 3('b)(ii)(a)(b), 4(b)(6)(a)(1)), ('b)(ii)(a)(b), 7,
8 AND SEM IOiN 2(WO; THEREOI',F C)R THE PIJIZI'OSE OF INC RI;ASIi.
OF WATI R AND SEWER RATES; RI?11EALINC ANN' AND ALI,
ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT TO THE.
EXTENT OF SUCH CONFi K14 AND ESTABLISHING AN EFFECTIVE
DATE:.
BE IT ENACTED, by the City Council for the Ciiv of Ames. lovva.that:
S ction 0ne:. "The Municipal Code of the City of nws, Iowa shall be and the smock hereby amended by
t l caiirt< Chapter 28, Section 201(i)(bHKgagb),2(b)(i Anyb).3(b)(i0(a9bE 4("b)(ii)(a)(b). 5(byhga)(by A 8 and
Section 20,4(3). L'nacting a new Chapter N. Section 201(I)(b)(it)(a)(b),2(byk ja)(b).3QYii)(a)(b).40p ii)(a)(b),
7.8 and Section 2O4(3)as follows:
"Sec. 28.201. WATER RATES AND CHARGES
The rates and Naga tot water supplied to consumers by dw wato utility ofthe-city.to be billed on or aher July 1.2013
are its follows:
(1) Residentiai Rates.
(b) Rate per billing period. For each rnonthly billing,period a residential
rate cu tomcr:
(ii) shall be charged liar Water usa,;e durim_the billing periods as follows:
(a) for bilis mailed on or between Jaly 1 and October 31 (surrtnacr period):
50.0215 per cubic foot fin-the first 1000 cubic feet of usttse
,O.o379 per cubic foot for the next 1500 cubic feet of usagc
SOM5 70 per cubic foot for all tt a Te OVCr 2500 cubic feet
(b) Tor bills mailed on or between November I and June 30(\,micr pia riod;:
$0MY 5 per cubic foot.
(2) Non-residential(Commercial) Rates
(b) Rate per billing; period: Fctr each monthl-y bill tqg period a non-residential custumer�
(ii) shall be charged par water usage during,the billing,periods a ioilows:
(a) for !)ills mailed on or hoween.lulr l and October 31 (summer period):
S0).0281 per cubic Coot
(b) for hills mailed on or between November I and June 30 (winter period):
S0 02_13 per cubic Coot
(3) Non-Peak.in<g, industrial Rate.
(b) Rate per Billing Period. hor each monthly billing period a non-pealing_ indusirirrl rate
costumer:
(h) shall be charged for",awr usa s Whig the billing,periods as fbllo"v
(a) for bills mailed on or k( ecn July I and October 31 (sunimcr period):
; ION j per cubic Not
(b) for bills mailed on or between November I and.lunc 30(wince:-period):
SIO 1 5 per cubic foot
(A) Irrigation and Yard Water Service hate..
(b) Rate per FUI inc Period. For each monthly billing period an irrigation and yard water rate
QW01 iCr:
("ii) ~hall be changed for water usage during* billin,",periods as follows:
(a) for hilt,mailed on or %wevi AN i and Octolver 31 (summer pe.riody
50.0310 per cubic foot lir the first 2000 cubic l;ca of usa,l;e
S0.570 per cubic riot for the next 30(X)cubic feet liarr sage.
STON9 per cubic Picot for all us ge grafter Wan 5MM cubic feet.
(b) for hills riaailcd tni or bemeua November I ;and Junc 30(,winter period):
SOME j per cubic foul
(3) Rural Water Raw.
Raw per billing period. i-or each monthly billing I)Criod; a rural Water rate customer:
(ii) shall Lac climled Or %rater usage durinq l0irig pentads as follows:
(a) for bills mailed on oa hctwCah.ttaly 1 and (.ctohCT' 3 1 (sunu)aer period):
50.0356 per cubic root for the: first 2000 cubic fCet of usaz!ce
S1005 per eubtc foot 1w the next 3000 cubic feet of usay—c
SU.1092 per cubic toot for all u a e greater ih:n 5000 cubic i,ea.
(b) for bills mailed earl or between November I and Jung: 30(winter period):
Si0.0247 per cubic foot fir all consumption.
(7) 1liuimum charges. For each monthly btllin,_.each customer shall be chm-ged a arair;inautn naondaly
change based on the size liar the "uwr meter ts) ardor Wigaticni meter(s) at each Iockon. The minimum n,ondQ
chage mire be prorated,based on a 30ALy billing period. for the customer's initial andlorfinal bills, provided that in
ttn case sht:all the minimum Monthly chance he less than five dollars and cents(Sl .27)
i'he miniamnia monthly chargc for each %rater meter location shall bc:its lollows
Residential.
Non-residential,
Size of, Non-peak.in,,, Industrial, Yard Water
aet�er and lrriz_ation AcanaW.s Accounts
.5., m 5,5.. 3 T' 10.95 4.16 12.63
- -» wail 21.96 0.,16 2 5.26
I inch 9.00 50.5
K L2 inch 87'.S6 12.41 101,04
2 inch 175.72 16,41) 202.08
2 Oct batter, oft 34135 -- 391.40
2 inch, batten of--) 505.06 -- 580.81
3 itch 351.35 21,16 404M6
4 inch 592.88 216.6S 681.82
6 inch 988.14 1.9 1,136.36
S inch 1,976.27
10 inch 2.964.41 -12.1i) 3,409.07
(8) Mulliple dwellings—Mobile home pv-is. tvlultiple dwellings,including mobile hone parts,
may be serviced from it sinLie water meter. I1owcvcr,there shall be it surchill--c added ttl they water rates set forth
above. to be calculated as 1611oW :
For a 5;8 inch meter scrvin'.;' or more dwellimz units...... ...... ............. 3.I6!month unit
For a ' inch meter ser i,l =1 or illore dliellim_, units...............I..........
... .L6:tlhUnthrUnll
for it I inch meter cry in2 S or more dV Veldt units.......................... .. .I(vnti)ntl,.-unit
For;i I-li'' inch nlete-r serving I(i of-nitnc(IwCIlin1_1 units.. ...... .. ......... I.I6inlonthAunit
For za 2 inch meter servinx 30 or more(i�ellill` units................................. 9•1.60imallth
for the first 31) units plus S4.91imonth per unit for
each a.dditiorlal unit in excess of"30 units
For a 3 inch or larucr meter serum,anv ntunber of dwefline units........ 4.35,`]nonth/unit
For the purposes ofthis section. it (iweliirl11_1 unit is cielirlcd is it sell-contained live)�,, facilit% (i.e.,
iricilidi �,f<itchen and b,ltl i:such as an apitrullent or if liceil ed independent mobile home space.
Sec. 28.304. SE EIR RATES ES"l ABL.lS11E•;().
(3) For each moothlY billing on or itfter.huh, L 2015,c hch customer Shilll be charged a mini]huru men thh
The mininuuhl char-LLe for "ach location shah be ten dollars and seventy-one cents (Sli).71). 'HIC mininliull
tl on;llly char c ma% be piottttcci. ba,eil on a 30-dnv hilliw_, period. Ior the custi)nlct`s inil,lal andior final bills,provided
Chill in no c-l:e shall the nrorated rltinimull)moritilk ch u_s.e h; Ics than four dollars and twelve cents(S-�1.13). In addition.
tot ill] water metered be�ntnn; ,mth the first cubic loineacl:rr;ontlt,each) user SIM11 puy mo i oilsirs irncl scvenh--ti�ur
cents(52.74) Per 100 cubit: heel.'
SC(Ail)tl '1�+�o. Fill ordin,tnee�. t)t palms of ordinances.. in conl'lic[ hucN%iiil cue herco" re.pc-ti_d to the stem
of-such c )tlilict. it Sul\
Section Three. This ordinilncc shall be in till) force and efTect iron, and irl'ter its and public;uion as
required h,.. lim
'assed titi., "''' i:l,'1v ol- N'liis ?0I
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