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Home My WebLink AboutRESOLUTION NO. 2020-01 Fairfax419915-30/2020 Sale GO RESOLUTION AWARDING SALE OF GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2020 419915-30 Fairfax, Iowa January 14, 2020 The City Council of the City of Fairfax, Iowa, met on January 14, 2020, at 6:00 o'clock p.m., at the City Hall. The meeting was called to order by the Mayor, and the roll was called showing the following Council Members present and absent: Present: Travis Otto, Mike Daly, Kate Pacha, and Marianne Wainwright Absent: Nick Volk. This being the time and place fixed by the Council for the consideration of bids for the purchase of the City's General Obligation Corporate Purpose Bonds, Series 2020, the City Clerk announced that bids had been received and canvassed on behalf of the City at the time and place fixed therefor. 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 Piper Sandler& Co., Minneapolis, Minnesota 1.7656% Bankers Bank, Madison, Wisconsin 1.9212% UMB Bank, n.a., Kansas City, Missouri 2.0079% Robert W. Baird & Co., Inc., Milwaukee, Wisconsin 2.0770% D.A. Davidson Company, Denver, Colorado 2.0804% Commerce Bank, Kansas City, Missouri 2.1168% Bernardi Securities, Inc., Chicago, Illinois 2.1541% Council Member Daly introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Otto. After due consideration and discussion, the Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted: Ayes: Otto, Daly, Pacha, and Wainwright Nays: None. Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out. -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax419915-30/2020 Sale GO RESOLUTION NO. 2020-01 RESOLUTION AWARDING SALE OF GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2020 WHEREAS, the City of Fairfax, Iowa (the "City") has proposed to enter into a loan agreement (the "Loan Agreement") and to issue General Obligation Corporate Purpose Bonds, pursuant to the provisions of Chapter 384 of the Code of Iowa, for the purpose of financing the construction of certain sanitary sewer, waterworks, city park and bridge improvements, and acquisition of a fire truck, and has published notice and has held a hearing thereon; and WHEREAS,pursuant to advertisement of sale,bids for the purchase of$1,270,000 General Obligation Corporate Purpose Bonds, Series 2020 (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 City's municipal advisor has determined that the bid of Piper Sandler & Co., Minneapolis, Minnesota(the "Purchaser"), is the best, such bid proposing the lowest interest cost to the City; NOW, THEREFORE, It Is Resolved by the City Council of the City of Fairfax, 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 in the principal amount of$1,290,147.50 and at the price specified in such bid, together with accrued interest. Section 2. 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 3. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved January 14, 2020. Burnell G. Frieden, Mayor Attest: Cy thia K. Stimson, City Clerk/Treasurer -2- DORSEY 6&WHITNEY LLP,ATTORNEYS, DES MOINES, IOWA Fairfax419915-30/2020 Sale GO Upon motion and vote, the meeting was adjourned. Burnell G. Frieden, Mayor Attest: y thia K. Stimson, City Clerk/Treasurer -3- DORSEY & WHITNEY LLP,ATTORNEYS, DES MOINES, IOWA Fairfax419915-30/2020 Sale GO STATE OF IOWA COUNTY OF LINN SS: CITY OF FAIRFAX 1, the undersigned, City Clerk of the City of Fairfax, 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 Bonds, Series 2020, evidencing the City's obligation under a certain Loan Agreement. WITNESS MY HAND this day of 2020. nthia K. Stimson, City Clerk/Treasurer (Attach here a copy of the bid of the successful bidder.) -4- DORSEY & WHITNEY LLP,ATTORNEYS, DES MOINES,IOWA Speer Financial, Inc. INDEPENDENT MUNICIPAL ADVISORS ESTABLISHED 1954 KEVIN DANIEL RAPHALIATA PAGGIE AN"rHONY LARRY PARK .,McCANN.A FORBES 'McKENZIE BURGER tv110E1-I BURGER JERETINA Chairman President Senior 17' .Senior PP Senior IT Tice Premien Tice Pre.sidem January 14, 2020 The Honorable Burnell G.Frieden, Mayor and Members of the City Council City of Fairfax 300 80`11 Street Court P.O. Box 337 Fairfax, IA 52228 Dear Mayor Frieden and Council Members: Bids were received today for the $1,270,000 General Obligation Corporate Purpose Bonds, Series 2020. There were seven bids received, which are listed at the bottom of this letter. Upon examination, it is our opinion that the bid of Piper Sandler & Co., Minneapolis, Minnesota, is the best bid received, and it is further our opinion that the bid is favorable to the City and should be accepted. We therefore recommend that the Bonds be awarded to that bidder at a price of$1,290,147.50, being at a true interest rate of 1.7656%. True Account Managers Interest Rate Piper Sandler& Co., Minneapolis,Minnesota............................................ 1.7656% Bankers' Bank, Madison, Wisconsin................................................................ 1.9212% UMB Bank, n.a., Kansas City, Missouri .......................................................... 2.0079% Robert W. Baird & Co., Inc., Milwaukee, Wisconsin...................................... 2.0770% D.A. Davidson Company, Denver, Colorado................................................... 2.0804% Commerce Bank, Kansas City, Missouri.......................................................... 2.1168% Bernardi Securities, Inc., Chicago, Illinois....................................................... 2.1541% Respectfully submitted, SPEER FINANCIAL, INC. �I 1 Maggie Burger, Sr. Vice President MB/lnr Enclosures SUITE 4100•ONE NORTI 11_ASALl.1.STREF]"•CIIICAGO:11,1.1NOIS 60602•(312)346-3700•FAX(312)346-8833 SUITE 608•531 COJMMFRCIA1,STREET•wA"I'I IRI_00.IOWA 50701 •(319)291-2077•PAX(319)291-8628 Speer Financial, Inc. INDEPENDENT MUNICIPAL ADVISORS • ESTABLISHED 1954 SUITE 608 531 COMMERCIAL.STREET WATERLOO,IOWA 50701 •(319)291-2077 FAX(319)291-8628 Not Rated $1,270,000 CITY OF FAIRFAX iliClMv _WUT Hf,rMU Linn County,Iowa General Obligation Corporate Purpose Bonds, Series 2020 Date of Sale: January 14, 2020 Average Life: 7.144 Years (Based on TIC) True Bidders* Price Maturities Rates Interest** Piper Sandler& Co. 101.586% 2021 - 2031 2.000% 1.7656% Minneapolis, Minnesota $1,290,147.50 2032 - 2035 2.050% $161,974 Fairfax State Savings Bank, Fairfax, Iowa Bankers' Bank 99.500% 2021 - 2022 1.300% 1.9212% Madison, Wisconsin $1,263,650.00 2023 - 2024 1.400% $174,548 2025 - 2026 1.550% 2027 - 2028 1.700% 2029 -2030 1.900% 2031 -2035 2.250% UMB Bank, n.a. 100.488% 2021 - 2031 2.000% 2.0079% Kansas City, Missouri $1,276,201.75 2032 - 2035 2.600% $183,183 Robert W. Baird & Co., Inc. 99.586% 2021 - 2032 2.000% 2.0770% Milwaukee, Wisconsin $1,264,743.50 2033 2.125% $188,078 2034 - 2035 2.250% D.A. Davidson Company 105.967% 2021 - 2035 3.000% 2.0804% Denver, Colorado $1,345,792.40 $196.399 Commerce Bank 100.375% 2021 - 2030 2.000% 2.1168% Kansas City, Missouri $1,274,764.13 2031 2.250% $193.294 2032 - 2035 3.000% Bernardi Securities, Inc. 105.471% 2021 - 2035 3.000% 2.1541% Chicago. Illinois $1,339,482.50 $202.709 "Syndicate uiformation isprovided UY the arnder-li�riter. The information contained in this report is the most current available. "The true nnerest rate reflects the time value of money where dollars spent in early Years have a greater weight than dollars spent in later sears. Speer Financial,Inc. INDEPENDENT MUNICIPAL ADVISORS City of Fairfax, Iowa $1,270,000 General Obligation Coporate Purpose Bonds, Series 2020 *** FINAL *** Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 02/11/2020 - - 12/01/2020 - - 20,501.39 20,501.39 - 06/01/2021 85,000.00 2.000% 12,725.00 97,725.00 118,226.39 12/01/2021 - - 11,875.00 11,875.00 - 06/01/2022 95,000.00 2.000% 11,875.00 106,875.00 118,750.00 12/01/2022 - - 10,925.00 10,925.00 - 06/01/2023 95,000.00 2.000% 10,925.00 105,925.00 116,850.00 12/01/2023 - - 9,975.00 9,975.00 - 06/01/2024 1007000.00 2.000% 9,975.00 109,975.00 119,950.00 12/01/2024 __ - - 8,975.00 8,975.00 - 06/01/2025 105,000.00 2.000% 8,975.00 113,975.00 122,950.00 12/01/2025 - - 7,925.00 7,925.00 - 06/01/2026 105,000.00 2.000% 7,925.00 112,925.00 120,850.00 12/01/2026 - - 6,875.00 6,875.00 - 06/01/2027 115,000.00 2.000% 6,875.00 121,875,00 128,750.00 12/01/2027-------- --- 5,725.00 ----- 5,725.00 - CALL 06/01/2028 1157000.00 2.000% 5,725.00 120,725.00 126,450.00 12/01/2028 - - 4,575.00 4,575.00 - 06/01/2029 115,000.00 2.000% 4,575.00 119,575.00 124,150.00 12/01/2029 - _ 3,425.00 3,425.00 - 06/01/2030 120,000.00 2.000% 3,425.00 123,425.00 126,850.00 12/01/2030 - - 2,225.00 2,225.00 - 06/01/2031 120,000.00 2.000% 2,225.00 122,225.00 124,450.00 12/01/2031 - - 1,025.00 1,025.00 - 06/01/2032 55,000.00 2.050% 1,025.00 56,025.00 57,050.00 12/01/2032 - - 461.25 461.25 - 06/01/2033 15,000.00 2.050% 461.25 15,461.25 15,922.50 12/01/2033 - - 307.50 307.50 - 06/01/2034 15.000.00 2.050% 307.50 15,307.50 15,615.00 12/01/2034 - - 153.75 153.75 - 06/01/2035 15,000.00 2.050% 153.75 15,153.75 15,307.50 Total 51,270,000.00 - S182,121.39 $1,452,121.39 - Yield Statistics Bond Year Dollars $9,073.06 Average Life 7.144 Years Average Coupon - - 2.0072774% Net Interest Cost(NIC) 1.7852188% True Interest Cost(TIC) _ _ 1.7656197% Bond Yield for Arbitrage Purposes 1.6588161% All Inclusive Cost(AIC) 1.7656197% IRS Form 8038 Net Interest Cost 1.6553462% Weighted Average Maturity 7.12 .Years 20 Fairfax 1.270 GO CP 1. 1 SINGLE PURPOSE 1 1/14/2020 1 12:59 PM Speer Financial, Inc. Independent Public Financial Advisors Since 1954 I I $1,270,000 * City of Fairfax,Linn County,Iowa General Obligation Corporate Purpose Bonds,Series 2020 Best AON Bidder: Best AON TIC: Piper Jaffray 1.765620 % Serial/ Principal Sinker/ Due Amount * Term Coupon Jun 1,2021 $85,000 Serial 2.000% Jun 1,2022 $95,000 Serial 2.000% Jun 1,2023 $95,000 Serial 2.000% Jun 1,2024 $100,000 Serial 2.000% Jun 1,2025 $105,000 Serial 2.000% Jun 1,2026 $105,000 Serial 2.000% Jun 1,2027 $115,000 Serial 2.000% Jun 1,2028 $115,000 Serial 2.000% Jun 1,2029 $115,000 Serial 2.000% Jun 1,2030 $120,000 Serial 2.000% Jun 1,2031 $120,000 Serial 2.000% Jun 1,2032 $55,000 Sinker 2.050% Jun 1,2033 $15,000 Sinker 2.050% Jun 1,2034 $15,000 Sinker 2.050% Jun 1,2035 $15,000 Term 2.050% Purchase Price:$1,290,147.50 Spread:None Entered Time Submitted:January 14,2020 at 11:39:56 AM EST SpeerAuction Interest Cost Calculations (for informational purposes onl ) Issue Size $1,270,000 Gross Interest $182,121.39 Plus Discount/(Less Premium) (20,147.50) Total Interest Cost $161,973.89 True Interest Rate 1.765620% Total Bond Years 9,073.06 vera a Life 7.144 Years Firm:Piper Jaffray *Preliminary,subject to change The foregoing bid as submitted or as revised post sale,if appropriate,was accepted and the Securities sold by action of this Board,and receipt is hereby acknowledged of the good faith Deposit,if any,which is being held in accordance with the terms of the annexed Official Notice of Sale. Signature: Title: