MINUTES FOR HEARINGS ON LOAN AGREEMENTS, SET DATE FOR SALE OF BONDS AND TO AUTHORIZE OFFICIAL STATEMENT FOR BONDS
435926-26
Monticello, Iowa
May 16, 2011
The City Council of the City of Monticello, Iowa, met on May 16, 2011, at 6:00 o’clock p.m. at the Monticello Renaissance Center, in the City. The meeting was called to order by the Mayor Pro Tem, and the roll being called, the following named Council Members were present and absent:
Present: John Sauser, Dave Goedken, Gerald Muller, Gregg Merfeld, Chris Lux, and Tom Yeoman
Absent: None.
This being the time and place specified for taking action on the proposal to enter into an Essential Corporate Purpose Loan Agreement in a principal amount not to exceed $1,120,000, the City Clerk announced that no written objections had been placed on file. Whereupon, the Mayor Pro Tem called for any written or oral objections, and there being none, the Mayor Pro Tem closed the public hearing.
This also being the time and place specified for taking action on the proposal to enter into a General Corporate Purpose Loan Agreement in a principal amount not to exceed $60,000, the City Clerk announced that no petition had been filed asking that the question of entering into the loan agreement be submitted to the registered voters of the City, and that the City Council may proceed with the authorization of the loan agreement.
After due consideration and discussion, Council Member Sauser introduced the following resolution and moved its adoption, seconded by Council Member Yeoman. The Mayor Pro Tem put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted:
Ayes: Sauser, Yeoman, Lux, Goedken, Muller and Merfeld
Nays: None.
Whereupon, the Mayor Pro Tem declared the resolution duly adopted, as hereinafter set out.
• • • •
At the conclusion of the meeting and, upon motion and vote, the Council adjourned.
__________________________________
John Sauser, Mayor Pro Tem
Attest:
__________________________________
Sally Hinrichsen, City Clerk
RESOLUTION NO. #11-74
Resolution taking additional action to enter into a Loan Agreement, setting date for the sale of General Obligation Corporate Purpose Bonds, Series 2011 and authorizing the use of a preliminary official statement in connection therewith
WHEREAS, the City of Monticello (the “City”), in Jones County, State of Iowa, pursuant to the provisions of Section 384.24A of the Code of Iowa, has heretofore proposed to enter into a loan agreement (the “Essential Corporate Purpose Loan Agreement”) in a principal amount not to exceed $1,120,000 for the essential corporate purposes of paying the costs, to that extent, of constructing street improvements; constructing levee improvements for the sanitary sewer treatment plant; acquiring a GIS mapping system for the sanitation and water departments; removing asbestos from and demolishing a dilapidated building; and purchasing an ambulance, and has published notice of the proposed action and has held a hearing thereon on May 16, 2011; and
WHEREAS, pursuant to the provisions of Section 384.24A of the Code of Iowa, the City also proposes to enter into a loan agreement (the “General Corporate Purpose Loan Agreement”) in a principal amount not to exceed $60,000 for the general corporate purpose of paying the cost, to that extent, of reconstructing the public works facility, and in lieu of calling an election upon such proposal, has published notice of the proposed action and has held a hearing thereon, and as of May 16, 2011, no petition has been filed with the City asking that the question of entering into the General Corporate Purpose Loan Agreement be submitted to the registered voters of the City; and
WHEREAS, pursuant to Section 384.28 of the Code of Iowa, the City Council intends to combine the Essential Corporate Purpose Loan Agreement and the General Corporate Purpose Loan Agreement into a single loan agreement (the “Loan Agreement”); and
WHEREAS, a Preliminary Official Statement (the “P.O.S.”) has been prepared to facilitate the sale of General Obligation Corporate Purpose Bonds, Series 2011 (the “Bonds”) in evidence of the obligation of the City under the Loan Agreement, and it is now necessary to make provision for the approval of the P.O.S. and to authorize its use by Public Financial Management, Inc. (the “Financial Advisor”); and
WHEREAS, it is now necessary to set the date for the sale of the Bonds and to authorize the Financial Advisor to carry out such sale;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Monticello, as follows:
Section 1. The Essential Corporate Purpose Loan Agreement and the General Corporate Purpose Loan Agreement are hereby combined into a single loan agreement (the “Loan Agreement”), and the City Council hereby determines to enter into the Loan Agreement in the future and orders that the Bonds be issued at such time, in evidence thereof. The City Council further declares that this resolution constitutes the “additional action” required by Section 384.24A of the Code of Iowa.
Section 2. The City Administrator is hereby authorized to take such action as shall be deemed necessary and appropriate, with assistance from Dorsey & Whitney, LLP and the Financial Advisor, to set the date of June 8, 2011 as the date for the sale of the Bonds to be issued in evidence of the City’s obligation under the Loan Agreement
Section 3. The City Administrator is hereby authorized to take such action as shall be deemed necessary and appropriate with the assistance of the Financial Advisor to prepare the P.O.S. describing the Bonds and providing for the terms and conditions of their sale, and all action heretofore taken in this regard is hereby ratified and approved
Section 4. The use by the Financial Advisor of the P.O.S. relating to the Bonds in substantially the form as has been presented to and considered by the City is hereby approved, and the Financial Advisor is hereby authorized to prepare and use a final Official Statement for the Bonds substantially in the form of the P.O.S. but with such changes therein as are required to conform the same to the terms of the Bonds and the resolution, when adopted, providing for the sale and issuance of the Bonds, and the City Administrator is hereby authorized and directed to execute a final Official Statement for the Bonds, if requested. The P.O.S. as of its date is deemed final by the City within the meaning of Rule 15(c)(2)-12 of the Securities and Exchange Commission.
Section 5. Pursuant to Section 75.14 of the Code of Iowa, the City Council hereby authorizes the Financial Advisor to use electronic bidding procedures for the sale of the Bonds through PARITY®, and hereby finds and determines that the PARITY® competitive bidding system will provide reasonable security and maintain the integrity of the competitive bidding process and will facilitate the delivery of bids by interested parties under the circumstances of this bond sale.
Section 6. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
Passed and approved May 16, 2011.
John Sauser, Mayor Pro Tem
Attest:
Sally Hinrichsen, City Clerk
STATE OF IOWA
COUNTY OF JONES SS:
CITY OF MONTICELLO
I, the undersigned, City Clerk of the City of Monticello, do hereby certify that as such I have in my possession or have access to the complete corporate records of the City and of its Council and officers and that I have carefully compared the transcript hereto attached with those corporate records and that the transcript hereto attached is a true, correct and complete copy of all the corporate records relating to the authorization of a certain Loan Agreement and General Obligation Corporate Purpose Bonds, Series 2011 to be issued in evidence of the City’s obligation under the Loan Agreement and that the transcript hereto attached contains a true, correct and complete statement of all the measures adopted and proceedings, acts and things had, done and performed up to the present time with respect thereto.
I further certify that no petition was filed in my office asking that the question of entering into the General Corporate Purpose Loan Agreement be submitted to the registered voters of the City.
WITNESS MY HAND this _____ day of May, 2011.
Sally Hinrichsen, City Clerk
May 13, 2011
Doug Herman
City Administrator/City Hall
Monticello, Iowa
Via Email
Re: General Obligation Corporate Purpose Bonds, Series 2011
Our File No. 435926-26
Dear Doug:
We have prepared and attach the necessary proceedings related to the hearings on the Loan Agreements and to set the date for the sale of General Obligation Corporate Purpose Bonds, Series 2011, at the May 16th City Council meeting, and to authorize the use of a preliminary official statement in connection therewith.
The proceedings attached include the following items:
1. Minutes of the meeting covering the hearings, followed by the resolution taking additional action in connection with the Loan Agreement. This resolution simply sets forth the City Council’s determination to enter into the Loan Agreement in the future, and its adoption constitutes the “additional action” required by the statute. Further, the resolution fixes the date for the sale of Bonds and authorizes the preliminary official statement.
2. Certificate attesting the transcript.
The City Council should meet on May 16th as scheduled to hold the hearings. The minutes as drafted assume that no objections will be filed to the Essential Corporate Purpose Loan Agreement, and that no petition will be filed asking that the question of entering into the General Corporate Purpose Loan Agreement be submitted to the registered voters of the City.
As soon as possible after the City Council meeting, please return one fully executed copy of all of the completed pages in these proceedings. If you have any questions, please contact me.
Best regards,
John P. Danos
Attachments
cc: Sally Hinrichsen
Jon Burmeister