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HomeMy WebLinkAboutRESOLUTION NO. 2017-48 Pairfax419915-26/2017 Sale GO Call RESOLUTION AWARDING SALE OF GENERAL OBLIGATION CORPORATE PURPOSE AND REFUNDING BONDS, SERIES 2017 AND AUTHORIZING REDEMPTION OF OUTSTANDING BONDS 419915-26 Fairfax, Iowa May 30, 2017 The City Council of the City of Fairfax, Iowa, met on May 30, 2017, 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: JoAnn Beer, Mike Daly, Joe Kell, Nick Volk, and Marianne Wainwright Absent: None. 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 and Refunding Bonds, Series 2017, 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 (interest cost) United Banker's Bank 2.1556% Bloomington, MN $113,482 D.A. Davidson & Co. 2.2489% Denver, CO $118,935 UMB Bank, n.a. 2.2694% Kansas City, MO $119,963 Banker's Bank 2.3144% Madison, WI $121,751 With Fairfax State Savings Bank -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA "FSpeer Financial, Inc. INDEPENDENT MUNICIPAL ADVISORS ESTABLISHED 1954 KEVIN DANtt?1, DAVID RAPHALIATA K9AGGIE ANTHONY LADY MARK MCCANNA FORBE's PHILLIPS NIcKUNZ.II? €3URGIER I ICEI.t 11UR ER JEREFINA Chairmon Presidem l recxtiv�r!%' Senior J7 Senior VP Senior'E-7' Nee Pre.shkou f'we President May 30, 2017 The Honorable Bernie 1 riede.n, Mayer And Members of the City Council City of Fairfax 300 80th Street Court PO Box 337 Fairfax, IA 52228 Dear Mayor Frieden and Council Members: Bids were received today for the $955,000 General Obligation Corporate Purpose and Refunding Bonds, Series 2017, "There were five bids received, which are listed at the bottom of this letter. Upon examination, it is our opinion that the bid of United makers' Bank, Bloomington, 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$949,747.50, beim at a true interest rata of 2..1556%, A portion of the; Bonds was used to currently refund the outstanding portion of the City's General Obligation Corporate; Purpose; Notes, Series 2009. By the City choosing to currently refund the; Series 2009 Notes, the City will realize a gross savings of $14,993.53, with a net present value saving of $14,250.50 or 4.1.31% of the principal amount of'the Refunded Notes. 'Prue Account Matygirs Interest hate United Bankers' Bank, Bloomington, Minnesota......................................... 2.1556% D.A. Davidson. & Co., Denver, Colorado......................................................... 2.248911/o UMB Bank, n.a., Kansas City, Missouri .......................................................... 2.2694% Bankers' Sank, Madison, Wisconsin............................................................... 2.3144% Northland Securities, Inc., Minneapolis. Minnesota........................................ 2.4723% Respectfully submitted, SPEER I'INANCIAL. INC. .,arr)A . 3urger, 46 're;sident I.,B/mr Enclosures SUITE 4100•ONl'NORTH LASALLG S LRI'FT•CI IICAGO,ILLINOIS 60602.(312)396-3700»FAX(312)3,16-8833 SUITE 608•331 COiM;Ivl1,'R('IAL.s'I'Rl:l-I'.WA`L`ER1.00,IOWA 50701 •(319)271-2077•FAX(319)291-8628 Pairfax419915-26/2017 Sale GO Call Northland Securities, Inc. 2.4723% Minneapolis, MN $130,007 (ATTACH BID TABULATION) Council Member Beer introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Kell. 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: Beer, Daly, Kell, Volk, and Wainwright Nays: None. Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out. -2- DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax419915-26/2017 Sale GO Call RESOLUTION NO. 2017-48 RESOLUTION AWARDING SALE OF GENERAL OBLIGATION CORPORATE PURPOSE AND REFUNDING BONDS, SERIES 2017 AND AUTHORIZING REDEMPTION OF OUTSTANDING BONDS WHEREAS, the City of Fairfax (the "City"), in Linn County, State of Iowa, has proposed to enter into a general obligation loan agreement (the "Loan Agreement") in a principal amount not to exceed $1,000,000, pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose of paying the cost,to that extent, of constructing street and waterworks improvements, planning for projects located in the Fairfax Urban Renewal Area, and refunding the outstanding balance of the City's General Obligation Corporate Purpose Notes, Series 2009, (the "Series 2009 Notes") and has published notice and has held a public hearing on the proposal to enter into the Loan Agreement; and WHEREAS, in the resolution authorizing the issuance of the Series 2009 Notes, the City reserved the right to call for payment prior to maturity any or all of the Series 2009 Notes maturing in 2019 and 2021 (the "Callable Series 2009 Notes"); and WHEREAS, pursuant to advertisement of sale, bids for the purchase of$955,000 General Obligation Corporate Purpose and Refunding Bonds, Series 2017 (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 United Bankers' Bank(the "Purchaser"), is the best, such bid proposing the lowest interest cost to the City; and WHEREAS, it is necessary to authorize the early redemption of the Callable Series 2009 Notes; 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 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. Bankers Trust Company, as Registrar and Paying Agent for the Series 2009 Notes, is hereby authorized to take all action necessary to call the Callable Series 2009 Notes for redemption as of July 3, 2017 (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 Callable -3- DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA Fairfax419915-26/2017 Sale GO Call Series 2009 Notes to be redeemed at the addresses shown on the City's registration books,not less than 30 days prior to the Redemption Date. Section 4. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved May 30, 2017. Burnell G. Frieden, Mayor Attest: Cyn is K. Stimson, City Clerk/Treasurer ,.�'� �" '� •• �" t Upon motion and vote, the meeting was adjourned. Burnell G. Frieden, Mayor Attest: V / Cynth'a K. Stimson, City Clerk/Treasurer -4- DORSEY& WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA Fairfax419915-26/2017 Sale GO Call 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 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 2017, 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 , 2017. Cynt is K. Stimson, City Clerk/Treasurer (Attach here a copy of the bid of the successful bidder.) -5- DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA 05/3012017 10:53 (FAX) P.0011001 OFFICIAL BID FORM City of Fairfax May 30,2017 300 80'i'Street Court Speer Financial Inc. Fairfax,IA 52228 Facsimile: (319)291-8628 City Council Members; For the$955,0000 General Obligation Corporate Purpose and Refunding Bonds, Series 2017 (the "Bonds"),of the City of Fairfax,Linn County,Iowa, he"City""Z as described in the annexed Official Terms of Offering,which is expressly made a part of this bid,we will pay yon$ g'�Ir 7#7 �y (no less than$947,360)bearing interest as follows(each rate a multiple of 1/8 or 1/100 of AMOUNTS*AND MATURITIES—JUNE 1 $ 85,000............2018 _L,_°fo $60,000..............2022 /*09 % $60,000..........,...2026 % 125,000............2019 I O % 65,000..............2023 `Yo 60,000..............2027 Z 55— % 145,000............2020% 55,000..............2024 05' % 60,000..............me '2.&c7 % 140,000............2021 r�% 66,000...•..........2025 .t % 65,000..•,.,....,..,2029 % Atty coteseculi a maturities narybe aggregated pito teras boods w the option of the bidder, In which ease the tnandototy twdett+ptlon provisions shall be on the sante schedule as above Manrltles: ZOZZ- Terni Maindo,2©2Z Matwmev2y?. Term Maturity Q2 masa hies;70,N Terni Maturity 20 2`,:r Maturuies;?�aze �Term Malurtty v Z Maturleles: Ternt Raturio? 'Subject to principal adjustment in accordance ivith the Official Terms of Offering. The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal opinion of Dorsey&Whitney LLP,Des Moines,Iowa. The City will pay for the legal opinion. The Purchaser agrees to apply for CUSIP numbers and pay the fee charged by the CUSIP Service Bureau and will accept the Bonds with the CUSIP numbers as entered on the Bonds. No good faith deposit is required. Account Maunger.nIn-fo(rm�atiion Bidders Qption Insurance Underwriter/Bank 1)41 Te-j gp,.,.k erc`t 1J 114.k We have purchased / , g insurance from: Address ! r C Name of Insurer Authorized Rap (PteareJitttn) Ci t ,$tate/'lip � e(J ���c7 Premium: Direct Phone 5ell g 7 Maturities: (Check One) FAX Number { } [_1 ____.Years S-Mail Address Stir) l.)All The foregoing bid was accepted and the Bonds solddby resolution of the City on May 30,2017. ATTEST, CITY OF FAIRFAX LIMN COUNTY,IOWA City Cork Mayor --__--NOT MAT OF THE BID............... Caicuiattan v tens inlarast cost Gross Interest $ 41 Less Premium/Plus Discount $ True Interast Cost $ & True Interest Rate % TOTAL BOND YEARS 5,246.03 AVERAGE LIFE 5.493 Years