RESOLUTION NO. 10-48
Taking additional action to enter into a Loan Agreement and awarding General Obligation Refunding Bonds, Series 2010, and Authorizing the Call of Bonds
WHEREAS, pursuant to a resolution (the “2002 Water Revenue Resolution”) adopted by the City Council of the City of Monticello, Iowa (the “City”) on February 21, 2002, there have been heretofore issued $1,210,000 Water Revenue Bonds, Series 2002, dated March 15, 2002 (the “2002 Water Revenue Bonds”), a portion of which remains outstanding; and
WHEREAS, pursuant to the 2002 Water Revenue Resolution, the City reserved the right to call the 2002 Water Revenue Bonds maturing in the years 2011 to 2021 (the “Callable 2002 Water Revenue Bonds”), inclusive, on any date on or after June 1, 2010; and
WHEREAS, pursuant to a resolution (the “2002 Sewer Revenue Resolution”) adopted by the City Council on February 21, 2002, there have been heretofore issued $935,000 Sewer Revenue Bonds, Series 2002, dated March 15, 2002 (the “2002 Sewer Revenue Bonds”), a portion of which remains outstanding; and
WHEREAS, pursuant to the 2002 Sewer Revenue Resolution, the City reserved the right to call the 2002 Sewer Revenue Bonds maturing in the years 2011 to 2021 (the “Callable 2002 Sewer Revenue Bonds”), inclusive, on any date on or after June 1, 2010; and
WHEREAS, the City has heretofore proposed to enter into a General Obligation Refunding Loan Agreement (the “Loan Agreement”) in a principal amount not to exceed $1,500,000 pursuant to the provisions of Section 384.24A of the Code of Iowa for the purpose of paying the cost, to that extent, of refunding the Callable 2002 Water Revenue Bonds and the Callable 2002 Sewer Revenue Bonds, and has published notice of the proposed action and has held a hearing thereon on April 19, 2010; and
WHEREAS, pursuant to advertisement of sale, bids for the purchase of $1,310,000 General Obligation Refunding Bonds, Series 2010 (the “Bonds”) to be issued in evidence of the City’s obligation under the Loan Agreement were received and canvassed on behalf of the City and the substance of such bids noted in the minutes; and
WHEREAS, upon final consideration of all bids, the bid of Bankers Bank (the “Purchaser”), is the best, such bid proposing the lowest interest cost to the City; and
WHEREAS, it is now necessary to authorize the calling of the Callable 2002 Water Revenue Bonds and the Callable 2002 Sewer Revenue Bonds (collectively, the “Outstanding Bonds”) for early redemption;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Monticello, Iowa, as follows:
Section 1. The City hereby determines to enter into the Loan Agreement in the future and hereby orders the issuance of the Bonds and declares that this resolution constitutes the “additional action” required by Section 384.24A of the Code of Iowa.
Section 2. The bid of the Purchaser referred to in the preamble is hereby accepted, and the Bonds are hereby awarded to the Purchaser at the price specified in such bid, together with accrued interest.
Section 3. The City shall enter into the Loan Agreement with the Purchaser in substantially the form as will be placed on file with the Council, providing for a loan to the City, for the purpose or purposes set forth in the preamble hereof.
Section 4. The form of agreement of sale (the “Sale Agreement”) of the Bonds to the Purchaser is hereby approved, and the Mayor and City Clerk are hereby authorized to execute the Sale Agreement for and on behalf of the City.
Section 5. Bankers Trust Company, Des Moines, Iowa, as Registrar and Paying Agent for the Outstanding Bonds is hereby authorized to take all action necessary to call the Outstanding Bonds for early redemption on June 1, 2010 (the “Redemption Date”), and is further authorized and directed to give notice of such redemption by sending notice to each of the registered owners of the Outstanding Bonds to be redeemed at the addresses shown on the City’s registration books, not less than 30 and not more than 60 days prior to the Redemption Date.
Section 6. Further action with respect to the final authorization of the Loan Agreement and the issuance of the Bonds is hereby adjourned to the City Council meeting on May 3, 2010.
Section 7. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
Passed and approved April 19, 2010.