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Home My WebLink AboutRESOLUTION NO. 2020-34 Fairfax/419915-28/15"/2-Water Rev RESOLUTION NO. 2020-34 RESOLUTION TO FIX A DATE FOR A PUBLIC HEARING ON PROPOSAL TO ENTER INTO A WATER REVENUE LOAN AND DISBURSEMENT AGREEMENT AND TO BORROW MONEY THEREUNDER IN A PRINCIPAL AMOUNT NOT TO EXCEED $3,850,000 WHEREAS,the City of Fairfax(the"City"), in Linn County, State of Iowa, did heretofore establish a Municipal Waterworks Utility System (the "Utility") in and for the City which has continuously supplied water 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,the City now proposes to enter into a Water Revenue Loan and Disbursement Agreement(the"Agreement")and to borrow money thereunder in a principal amount not to exceed $3,850,000,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 (the "Project"), and it is necessary to fix a date of meeting of the City Council at which it is proposed to take action to enter into the Agreement and to give notice thereof as required by such law; NOW, THEREFORE, Be It Resolved by the City Council of the City of Fairfax, Iowa, as follows: Section 1. This City Council shall meet on May 12, 2020, at 6:00 o'clock p.m., at which time a hearing will be held and proceedings will be instituted and action taken to enter into the Agreement. The meeting will be held electronically via conference call at 425-436-6370, access code 759797. 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, not less than four (4) and not more than twenty (20) 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: -2- DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-28/111/z-Water Rev NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS TO ENTER INTO A LOAN AND DISBURSEMENT AGREEMENT IN A PRINCIPAL AMOUNT NOT TO EXCEED $3,850,000 (WATER REVENUE) The City Council of the City of Fairfax, Iowa, will meet on May 12, 2020, at 6:00 o'clock p.m., for the purpose of instituting proceedings and taking action to enter into a loan and disbursement agreement(the"Agreement")and to borrow money thereunder in a principal amount not to exceed $3,850,000, for the purpose of paying the cost,to that extent, of planning, designing and constructing improvements and extensions to the City's Municipal Waterworks Utility System. Due to federal and state government recommendations in response to COVID-19 pandemic conditions, the meeting will be held electronically via conference call at 425-436-6370, access code 759797. In addition to electronic access, written comments may be filed or made prior to the meeting and will be recorded in the minutes. The Agreement will not constitute a general obligation of the City, nor will it be payable in any manner by taxation but, together with 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 Waterworks Utility System of the City. At the aforementioned 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 Fairfax, Iowa. Cynthia Stimson City Clerk -3- DORSEY chi WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-28/1"%z-Water 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 approximately $3,989,730, (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 April 14, 2020. Burnell G. Frieden, Mayor Attest: C nthia K. Stimson, City Clerk/Treasurer a ap r,date kY�'. On motion and vote, the meeting adjourned. 4urne`lIG. Frieden, Mayor Attest: 0 y thia K. Stimson, City Clerk/Treasurer -4- DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA Fairfax/419915-28/15"'/2-Water Rev ATTESTATION CERTIFICATE: STATE OF IOWA COUNTY OF LINN SS: CITY OF FAIRFAX 1, the undersigned, City Clerk/Treasurer of the City of Fairfax, 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 Water Revenue Loan and Disbursement Agreement. WITNESS MY HAND this 15t" day of April, 2020. Cyn ,is K. Stimson, City Clerk/Treasurer -5- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA Fairfax/419915-28/1"1/2-Water Rev ORGANIZATION AND ESTABLISHMENT CERTIFICATE: STATE OF IOWA COUNTY OF LINN SS: CITY OF FAIRFAX I, the undersigned City Clerk/Treasurer, do hereby certify that the City is organized and operating under the provisions of Title IX of the Code of Iowa and not under any special charter and that such 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: Burnell G. Frieden, Mayor Cynthia K. Stimson, City Clerk/Treasurer Marianne Wainwright, Council Member/Mayor Pro Tem Michael Daly, Council Member Travis Otto, Council Member Katherine Pacha, Council Member Nicholas Volk, Council Member I further certify that the City established the Municipal Waterworks Utility System (the "Utility") prior to January 1, 1961, and that the Utility has been in continuous operation by the City since its establishment as aforesaid in supplying water service to the City and its inhabitants. I further certify that the management and control of the Utility are vested in the City Council of the City, and that no board of trustees exists which has any part of the control and management of such Utility. WITNESS MY HAND this 15t1i day of April, 2020. 4,141 Cylithia K. Stimson, City Clerk/Treasurer -6- DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA Fairfax/419915-28/15"h-Water Rev OUTSTANDING DEBT CERTIFICATE: STATE OF IOWA COUNTY OF LINN SS: CITY OF FAIRFAX 1, the undersigned, City Clerk/Treasurer of the City of Fairfax, do hereby 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 Municipal Waterworks Utility System (the "Utility"), except as follows: Date Type Principal Amount Maturity Outstanding NONE (Attach here a separate sheet listing any outstanding obligations of the City secured by and payable from the revenues of the Utility excluding the proposed issue.) WITNESS MY HAND this 15"' day of April, 2020. Cy thia K. timson, City Clerk/Treasurer -7- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA