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Home My WebLink AboutRESOLUTION NO. 2008-23 - AWARDING $780000 GO REFUNDING NOTES Fairfax/419915-11/2nd'/2 Sale Only MINUTES TO SELL NOTES 419915-11 (2nd V2 ,Sale) FOR YOUR DSFairfax, Iowa March 31, 2008 The City Council of the City of Fairfax, Iowa, met on March 31, 2008, at _o'clock -�L.m., at the 1 cfFairfax, Iowa. The meeting was called to order by the Mayor, and the roll was called showing the following Council Members present and absent: T t {g{g{g{g{g{g g Present. .X'0 Absent: `, This being the time and place fixed by the Council for the consideration of bids for the purchase of the City's $780,000 General Obligation Refunding Notes, Series 2008B, the Mayor announced that bids had been received and canvassed on behalf of the City at the time and place fixed therefor, 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 introduced the resolution next hereinafter set out and moved its adoption, seconded by„Council Member ~,, ,' . ,_. The Mayor put the question upon the adoption of said resolution, and the roll being called,the following Council Members voted: Ayes, .� ,'.r 1 a .,r r,l„ 1�, ..1., eu` q Nays: Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out. i -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA i PUBLIC FINANCE CONSULTANTS sllvice Issa S 11"R "INANCIAL INC. PIM r KEWN W.McCANNA DAVID F.PHILLIPS LARRY P.BURGER DANIEL D.FDRBES BARBARA L.CHEVALIER RAPHALIATA MCKFNZIE PRESIDENT SR.VICE PRESFDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT V9C£PRESIDENT March 31, 2008 The Honorable William Voss, Mayor and Members of the City Council City of Fairfax 525 Vanderbilt Street Fairfax, Iowa 52228 Dear Mayor Voss and City Council Members: Bids were received today for the $780,000 General Obligation Refunding Notes, Series 20088, There were 7 bids received, which are listed at the bottom of this letter. Upon examination, it is our opinion that the bid of Bankers' Bank, Madison, Wisconsin with Fairfax State Savings Bank, Fairfax, Iowa, 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 Notes be awarded to that bidder at a price of $776,880.00, plus accrued interest, being at a true interest rate of 3.4542%/ . True Account Managers Interest Rate Bankers' Bank, Madison, Wisconsin ..........................,.................................. 3.4542% UMB Banlc, n.a., Kansas City, Missouri........................................................... 3.6254% Ruan Securities, Des Moines, Iowa.................................................................. 3.64016% Northland Securities, Minneapolis, Minnesota................................................. 3.7339% Apple River State Bank, Apple River, Illinois.......................... ........................ 3,9143% Bernardi Securities, Inc,, Chicago, Illinois ....................................................... 3.9424% Regions Bank, Waterloo,, Iowa......................................................................... 3.9880% Respectfully submitted, SPEER FINANCIAL, INC---. arr Burger Vi resident ILPB/mb Enclosures SUITE 4100-ONE NORTH LASAL LE STREET,CHICAGO,ILLINOIS 60602-1(312)346-3700 FAX(312)346-8833 SUITE 609.531 COMMERCIAL CIAL STREET<WATERLOO,IOWA 50701 .(3191)298-2077.FAX(319)291-8626 Fairfax/419915-11/2nd 1/2 Sale Only RESOLUTION NO.Ii.j Awarding $780,000 General Obligation Refunding Notes WHEREAS, pursuant to the provisions of Section 384.24A of the Code of Iowa, the City Of Fairfax (the "City"), in the County of Linn, State of Iowa has heretofore proposed to contract indebtedness and enter into a loan agreement (the "Loan Agreement") in the principal amount of $780,000; for the purpose of paying the cost, to that extent, of refunding the City's outstanding General Obligation Corporate Piuzpose Notes, Series 2001, .and has published notice of the proposed action and has held a hearing thereon; and WHEREAS,pursuant to advertisement of sale, bids for the purchase of$780,000 General. Obligation Refunding Notes (the "'Notes") 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 ", `a it _ g i:; i'�; (the Purchaser' is the best, such bid proposing the lowest interest cost to the City; NOW, THEREFORE, Be:It Resolved by the City Council of the City of Fairfax, Iowa, as follows: Section 1. The City shall enter into the Loan Agreement with the aforesaid bidder; as Purchaser (the "Purchaser"), in substantially the form as will be placed on file with the Council, providing for a loan to the City in the principal amount of$780,000 for the purpose or purposes set forth in the preamble hereof: Section 2. The bid of the Purchaser referred to in the preamble is hereby accepted, and the Notes are hereby awarded to the Purchaser at the price specified in such bid, together with accrued interest. Section 3. The form of agreement of sale (the "Sale Agreement") of the Notes 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. -2- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA S Fairfax/419915-11/2nd V. Sale Only Section 4. All resolutions or parts thereof in conflict,herewith are hereby repealed to the extent of such conflict. Passed and approved March 31, 2008, Mayor Attest: City Clerk -3- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fair1`ax/419915-11/2nd V� Sale Only Thereupon, it was moved by Council Member L"I UC,"V1')- and seconded by Council Member that further action with respect to the approval lof' the Loan Agreement and the issuance the Notes be deferred until April 8, 2008, at V o'clock '0 m., at the in the City. The Mayor put the question on the motion and the roll being called, the following named Council Members voted: Ayes: Nuys: Whereupon, the Mayor declared the motion adopted. Mayor Attest: t City Clerk -4- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fazrl"ax/419915-11/2nd'/z Sale Only STATE OF IOWA COUNTY OF LINN SS: CITY OF FAIRFAX I, 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 the aforesaid 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 $780,000 General Obligation Refunding Notes of said 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 and the seal of the City hereto affixed this day of Y„ /1 , 2008. City Clerk (Seal) (attach here a copy of the bid of the successful bidder.) 5 DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA i 33-31-'08 10:47 FF;0H-Bankers Bank 6088295589 T-145 F0010"001 F-764 WEVISED OFFICIAL BID FORM City of Fairfax March 21, 2008 525 Vanderbilt Street Spur Financial, rnc. Fairfax, LA 52228 Facsh-elle (319) 291-8628 embers of The City Council: For the $780,000 General Obligation Refunding Notes (Tax Exempt), Series 2008$ (the "Notes77) of the City of Fairfax, Linn County, Iowa, (the "City„) as described in the annexed Preliminary Tera Sheet, WIfjoh is expressly made a part hereof, we: will pay you $ `l'7(,. 2 _ (no less than $772,200) plugs accrued interest from April 1,2008 to the date of delivery, The Notes are to beat- interest at the fol lowitig respective rates (each rate a milltiple of 1/8 or II100 of I%) for Notes of each designated maturity. MATURITIES - JUNE 1 Interest hiterest Interest Rate Rate Rate $ 85,000 ..........2009 2.'7a % $100,000..........2012 :3. I, % $'100,000....._..._2714 $ '90,000..........2010 % $ 95,000........ 2013 z ,y % $105,000..........2015 $ 95,000..........2011 3.as % $110,000..........2016 % "Any vgnseovive wafrities may he aggregated into no more than fottr jerol rrvtes of rhe option of the binder, itr whicig arse the mandatary redemption provisions shall be on fire s[rrne schedule as rabnve. Maturities Term Matrtrity_ Matrerities Term Katrarity Maturities Term Ma 64 rity rerrn Maturity The Notes are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal opinion of Dorsey & Whitney LLP, Des Moines, Iowa.. The City is to pay for the legal opinion. The Purchaser agrees to apply for CUS1P numbers arta pay the fee charged by the CUSIP Service Btirea'ty. sav1n1C,, PURCHASER INFORMATION Marne q„kers6 g'I y-- DirectTeiephoncNo. � o � �2 By �qn. �C,,/1 ... 1axNumber SS�5 Address r7+7Qc, m er-P e6iwt -PL signator, f� g=:�a City J1�1 �� (So Email Address state/`Lits 1 t ti S $ Thc foregoing bid was accepted and the $780,000 General Obligation Refunding Notes (Tax Exempt), Series 2008B, sold by resolution of the City of Fairfax, Litan County, on March 31, 2008. CITE''"OF FAIRFAX ATTEST: LIMN COUNTY, IOWA Ciry Clerk Mayor �— -----NOT PART OF THE BID----- -� Xalculatian a true imerest cost) Gross Interest $ 1 2.-7, l L4 S ° Less rc1'ni1jm/1'[LS Disc®unt $ l 2-0- TFUti Interest COSI $ I ,3 , 2(0_,-. 0� Truc Interest Rate ,' UK Total Band bear} 3,770.00 Average Lite 4,$33:yews