MINUTES TO SELL BONDS AND TO AUTHORIZE CALL OF OUTSTANDING BONDS
435926-30
Monticello, Iowa
April 18, 2016
The City Council of the Monticello, Iowa, met on April 18, 2016, at 6:00 o’clock p.m., at the Monticello Renaissance Center, Community Media Center, a/k/a City Council Chambers, 220 E. 1st Street, Monticello, Iowa.
The meeting was called to order by the Mayor, and the roll was called showing the following Council Members present and absent:
Present: Dave Goedken, Rob Paulson, Johnny Russ and Chris Lux
Absent: Brian Wolken and Tom Yeoman.
This being the time and place fixed by the City Council for the consideration of bids for the purchase of the City’s General Obligation Corporate Purpose and Refunding Bonds, Series 2016 the Mayor announced that bids had been received and canvassed on behalf of the City at the time and place fixed therefore.
Whereupon, such bids were placed on file, and the substance of such bids was noted in the minutes, as follows:
Name and Address of Bidder Final Bid
(interest cost)
(ATTACH BID TABULATION)
After due consideration and discussion, Council Member Lux introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Paulson. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted:
Ayes: Lux, Paulson, Goedken and Russ
Nays: None.
Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out.
RESOLUTION NO. 16-57
Resolution awarding sale of $2,640,000 General Obligation Corporate Purpose and Refunding Bonds, Series 2016 and authorizing call of outstanding Bonds
WHEREAS, the City of Monticello (the “City”), in Jones County, State of Iowa, previously issued its $1,195,000 Sewer Revenue Refunding Bonds, Series 2008, dated May 12, 2008 (the “2008 Bonds”) a portion of which currently remains outstanding maturing on such dates and in such amounts and bearing interest at such rates as follows as follows:
Year
Principal
Amount
Interest
Rate
2016
$115,000
3.75%
2017
$120,000
3.90%
2018
$125,000
4.00%
2019
$130,000
4.05%
;and
WHEREAS, pursuant to the resolution (the “2008 Bond Resolution”) authorizing the issuance of the 2008 Bonds, the City reserved the right to call the portion of the 2008 Bonds maturing in the years 2017 through 2019 (the “Callable 2008 Bonds”) for early redemption on any date on or after June 1, 2016, subject to the provisions of the 2008 Bond Resolution; and
WHEREAS, the City also previously issued its $3,400,000 General Obligation Urban Renewal Corporate Purpose Bonds, Series 2008B, dated October 15, 2008 (the “2008B Bonds”) a portion of which currently remains outstanding maturing on such dates and in such amounts and bearing interest at such rates as follows as follows:
Year
Principal
Amount
Interest
Rate
2016
$330,000
3.80%
2017
$345,000
4.00%
2018
$360,000
4.00%
2019
$380,000
4.05%
;and
WHEREAS, pursuant to the resolution (the “2008B Bond Resolution”) authorizing the issuance of the 2008B Bonds, the City reserved the right to call the portion of the 2008B Bonds maturing in the years 2017 through 2019 (the “Callable 2008B Bonds”) for early redemption on any date on or after June 1, 2016, subject to the provisions of the 2008B Bond Resolution; and
WHEREAS, the City heretofore proposed to enter into a General Obligation Corporate Purpose and Refunding Loan Agreement (the “Loan Agreement”) and to borrow money thereunder in a principal amount not to exceed $3,000,000 pursuant to the provisions of Section 384.24A of the Code of Iowa for the purpose of paying the cost, to that extent, of (1) current refunding the Callable 2008 Bonds; (2) current refunding the Callable 2008B Bonds; and (3) constructing street, water system, sanitary sewer system and storm water drainage improvements, and has published notice of the proposed action has held a hearing thereon on February 15, 2016; and
WHEREAS, a Preliminary Official Statement (the “P.O.S.”) has been prepared to facilitate the sale of $2,640,000 General Obligation Corporate Purpose and Refunding Bonds, Series 2016 (the “Bonds”) in evidence of the obligation of the City under the Loan Agreement, and the City Council has made provision for the approval of the P.O.S. and has authorized its use by Public Financial Management, Inc. (the “Financial Advisor”); and
WHEREAS, pursuant to advertisement of sale, bids for the purchase of 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, Madison, Wisconsin (the “Purchaser”), is the best, such bid proposing the lowest interest cost to the City for the Bonds; and
WHEREAS, it is now necessary to authorize the calling of the Callable 2008 Bonds and the Callable 2008B Bonds for early redemption on June 1, 2016 (the “Redemption Date”);
NOW, THEREFORE, Be It Resolved by the City Council of the City of Monticello, Iowa, as follows:
Section 1. 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 2. The City shall enter into the Loan Agreement with, and issue the Bonds to, the Purchaser in substantially the form as will be placed on file with the City Council, providing for a loan to the City in the principal amount of $2,640,000 for the purpose or purposes set forth in the preamble hereof.
Section 3. 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 4. Bankers Trust Company, as Registrar and Paying Agent for the Callable 2008 Bonds and the Callable 2008B Bonds is hereby authorized to take all action necessary to call the Callable 2008 Bonds and the Callable 2008B Bonds for early redemption on the Redemption Date, and is further authorized and directed to give notice of such redemption by sending notice by electronic means or by certified mail to each of the registered owners of the Callable 2008 Bonds and the Callable 2008B Bonds to be redeemed at the addresses shown on the City’s registration books, not less than 30 days prior to the Redemption Date.
Section 5. Further action with respect to the approval of the Loan Agreement and the issuance of the Bonds is hereby adjourned to the City Council meeting to be held on May 2, 2016.
Section 6. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
Section 7. This resolution shall be in full force and effect immediately upon its adoption and approval, as provided by law.
Passed and approved April 18, 2016.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
• • • •
Upon motion and vote, the meeting was adjourned.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
ATTESTATION CERTIFICATE:
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 City Clerk 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 in relation to the sale of General Obligation Corporate Purpose and Refunding Bonds, Series 2016 of the City evidencing the City’s obligation under a certain 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.
WITNESS MY HAND this ____ day of ___________, 2016.
Sally Hinrichsen, City Clerk
(Attach here a copy of the bid of the successful bidder.)
April 15, 2016
Via Email
Doug Herman
City Administrator/City Hall
Monticello, Iowa
Re: General Obligation Corporate Purpose and Refunding Bonds, Series 2016
Our File No. 435926-30
Dear Doug:
We have prepared and attach the necessary proceedings to be used at the City’s April 18th City Council meeting to report the bids received and to adopt the resolution approving the sale of the General Obligation Corporate Purpose and Refunding Bonds, Series 2016 to the best bidder and calling the Sewer Revenue Refunding Bonds, Series 2008, dated May 12, 2008 (the “2008 Bonds”) and the General Obligation Urban Renewal Corporate Purpose Bonds, Series 2008B, dated October 15, 2008 (the “2008B Bonds”) for early redemption on June 1, 2016.
The attached resolution must be completed with the name of the purchaser, and Public Financial Management, Inc. will tabulate the bid results and provide that name to you. Also, an executed copy of the resolution should be sent to Diana VanVleet at Bankers Trust by scan and email so that they may begin the process of calling the 2008 Bonds and the 2008B Bonds for redemption on June 1, 2016.
The proceedings attached include the following items:
1. Resolution awarding the sale of the Bonds, calling the 2008 Bonds and the 2008B Bonds for early redemption and providing for the adjournment of action on the Loan Agreement to May 2, 2016 for adoption of the issuance resolution.
2. Attestation Certificate attesting to the validity of the transcript.
As these proceedings are completed, please return one fully executed copy to our office. If you have any questions, please contact Emily Hammond or me.
Best regards,
John P. Danos
Attachments
cc: Sally Hinrichsen
PFM
Diana VanVleet