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HomeMy WebLinkAboutRESOLUTION NO. 2018-40 Fairfax/419915-27/SetGO BondSaleSeries201 A/POS SET DATE FOR SALE OF GENERAL OBLIGATION URBAN RENEWAL CORPORATE PURPOSE AND REFUNDING BONDS, SERIES 2018 419915-27 Fairfax, Iowa July 10, 2018 The City Council of the City of Fairfax, Iowa, met on July 10, 2018, at 6:00 o'clock p.m. at the City Hall, for the purpose of conducting a public hearing on a loan agreement in a principal amount not to exceed $2,200,000. The Mayor presided and the roll being called the following members of the Council were present and absent: Present: Travis Otto, Michael Daly, Joe Kell, Jr., Nicholas Volk, and Marriane Wainwright Absent: None It was reported that notice of the intention of the Council to conduct a public hearing on a loan agreement had been published according to law and as directed by the Council and that this is the time and place at which the Council shall receive oral or written comments from any resident or property owner of the City. All written statements and evidence that had been filed were reported to the Council. The Mayor called for public comments, and the following named persons presented oral statements, or evidence as summarized below; filed written statements, copies of which are attached hereto; or presented other exhibits, copies of which are attached hereto: None here in July. During June's meeting two people discussed the splash pad project. They asked about feasibility. There being no further comments or evidence offered, the Mayor announced the hearing closed. It was reported that it was necessary for the Council to set a date for the sale of the City's General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018. -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-27/SetGO BondSaleSeries2018/1'OS Council Member Kell introduced the resolution hereinafter next set out and moved its adoption, seconded by Council Member Daly; and after due consideration thereof by the City Council,the Mayor put the question upon the adoption of said resolution, and the roll being called, the following named Council Members voted: Ayes: Otto, Daly, Kell, Volk, and Wainwright Nays: None. The Mayor declared the resolution duly adopted, as hereinafter set out. • • . At the conclusion of the meeting, and upon motion and vote, the City Council adjourned. Burnell G. Frieden, Mayor Attest: C, ) Cyi'tithia K. Stimson, City Clerk/Treasurer -2- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-27/SetGO BondSaleSeries2018/1'OS RESOLUTION NO. 2018-40 RESOLUTION DETERMINING TO PROCEED WITH THE ISSUANCE OF GENERAL OBLIGATION URBAN RENEWAL CORPORATE PURPOSE AND REFUNDING BONDS, SERIES 2018, APPROVING PRELIMINARY OFFICIAL STATEMENT AND SETTING DATE FOR SALE OF THE BONDS WHEREAS, the City Council of the City of Fairfax, Iowa (the "City") has created the Fairfax Urban Renewal Area(the"Urban Renewal Area")and has approved an urban renewal plan for the Urban Renewal Area; and WHEREAS, an amendment to the urban renewal plan for the Urban Renewal Area has been prepared which describes the use of incremental property tax revenues for new urban projects related to improvements in the Urban Renewal Area and refinancing interim debt related to water and sanitary sewer improvements; and WHEREAS,the City has proposed to enter into a loan agreement(the"Loan Agreement") and to issue General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, pursuant to the provisions of Chapters 384 and 403 of the Code of Iowa, for the purpose of financing projects in the Fairfax Urban Renewal Area involving the construction of street,bridge, sanitary sewer, city park and trail improvements, and refunding the outstanding balances of sewer revenue bond anticipation project notes and water revenue bond anticipation project notes,and has published notice and has held a hearing thereon; and WHEREAS, the City now proposes to issue $2,170,000 General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018 (the "Bonds"); and WHEREAS, it is necessary to fix a date of meeting of the City Council to consider bids and take action for the sale and issuance of the Bonds and to give proper notice of such sale, as required by Chapter 75 of the Code of Iowa; and WHEREAS, a preliminary official statement (the "Preliminary Official Statement") has been prepared in connection with the sale of the Bonds, and it is necessary to make provision for the approval of the Preliminary Official Statement and to authorize its use by Speer Financial,Inc., as municipal advisor to the City; NOW, THEREFORE, It Is Resolved by the City Council of the City of Fairfax, Iowa, as follows: Section 1. The City Council hereby determines to enter into the Loan Agreement and to proceed with the issuance of the Bonds and declares that this resolution constitutes the "additional action" required by Sections 384.24A and 384.25 of the Code of Iowa. -3- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-27/SetGO BondSaleSeries2018/POS Section 2. Sealed bids for the purchase of the Bonds shall be received and canvassed on behalf of the City at 11:00 o'clock a.m. on July 24, 2018, at the office of the City Clerk, and electronic bids will be received on the SpeerAuction website: address www.SpeerAuction.com between 10:30 a.m. and 11:00 a.m. on July 24, 2018. The City Council shall meet on the same date at 6:00 o'clock p.m. at the City Hall for the purpose of considering such bids and considering and adopting a resolution providing for the award and sale of the Bonds. Speer Financial, Inc. is hereby authorized to disseminate the notice of bond sale, in compliance with the Internal Revenue Service regulations governing"Issue Price"determinations, and the City Clerk is hereby authorized and directed to publish notice of the bond sale, as provided by Chapter 75 of the Code of Iowa, in substantially the following form: -4- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-27/SetGO BondSaleSeries2018/1'OS NOTICE OF SALE City of Fairfax, Iowa $2,170,000* General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018 Bids will be received on behalf of the City of Fairfax, Iowa, until 11:00 o'clock a.m., Central Time, on July 24, 2018, for the purchase of $2,170,000* General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018 (the "Bonds"). Any of the methods set forth below may be used, but no open bids will be accepted: Sealed Bidding: Sealed bids will be received at the office of the City Clerk, City Hall, 300 80th Street Court, Fairfax, Iowa 52228. Electronic Internet Bidding: Electronic Internet bids will be received on the Speer Auction website: address www.SpeerAuction.com between 10:30 a.m. and 11:00 a.m., Central Time. Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of Speer Financial, Inc., at fax number(319) 291-8628, and will be sealed and treated as sealed bids. After the deadline for receipt of bids has passed,sealed bids will be opened and announced, and electronic internet bids will be accessed and announced. All bids will be presented to the City Council for consideration at its meeting to be held at 6:00 o'clock p.m. on July 24, 2018, at the City Hall, Fairfax, Iowa, at which time the Bonds will be sold to the best bidder for cash. The Bonds will be issued as fully registered bonds in denominations of $5,000 or any integral multiple thereof, will be dated August 28, 2018, will bear interest payable semiannually on each June 1 and December 1 to maturity, commencing June 1, 2019, and will mature on June 1 in the following years and amounts: Principal Principal Year Amount Year Amount 2019 $35,000 2026 $195,000 2020 $65,000 2027 $205,000 2021 $140,000 2028 $215,000 2022 $180,000 2029 $220,000 2023 $185,000 2030 $175,000 2024 $185,000 2031 $175,000 2025 $195,000 *The City reserves the right to increase or decrease the aggregate principal amount of the Bonds and to increase or reduce each scheduled maturity thereof after the determination of the successful bidder. -5- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-27/SetGO BondSaleSeries2018/POS The right is reserved to the City to call and redeem all of the Bonds maturing in the years 2025 to 2031, inclusive, in whole or from time to time in part, in one or more units of$5,000, on June 1, 2024, or on any date thereafter prior to and in any order of maturity (and within a maturity by lot), upon terms of par and accrued interest. Bidders must specify a price of not less than $2,152,640, plus accrued interest. The legal opinion of Dorsey & Whitney LLP, Attorneys, Des Moines, Iowa, will be furnished by the City. A good faith deposit of$43,400 is required from the successful bidder and may be forfeited to the City in the event the successful bidder fails or refuses to take and pay for the Bonds. The City reserves the right to reject any or all bids and to waive irregularities in any bid. The Bonds are being issued pursuant to the provisions of Chapters 384 and 403 of the Code of Iowa and will constitute general obligations of the City, payable from taxes levied upon all the taxable property in the City without limitation as to rate or amount. The Securities and Exchange Commission (the "SEC") has promulgated certain amendments to Rule 15c2-12 under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2- 12) (the "Rule") that make it unlawful for an underwriter to participate in the primary offering of municipal securities in a principal amount of$1,000,000 or more unless, before submitting a bid or entering into a purchase contract for such securities, it has reasonably determined that the issuer or an obligated person has undertaken in writing for the benefit of the holders of such securities to provide certain disclosure information to prescribed information repositories on a continuing basis so long as such securities are outstanding. On the date of issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Certificate pursuant to which the City will undertake to comply with the Rule. The City will covenant and agree to comply with and carry out the provisions of the Continuing Disclosure Certificate. All of the officers of the City will be authorized and directed to take any and all actions as may be necessary to comply with the Rule and the Continuing Disclosure Certificate. Bidders should be aware that the official terms of offering to be published in the Official Statement (the "Official Statement') for the Bonds contain additional bidding terms and information relative to the Bonds. In the event of a variance between statements in this Notice of Sale (except with respect to the time and place of the sale of the Bonds and the principal amount offered for sale) and said official terms of offering, the provisions of the latter shall control. In order to establish the issue price of the Bonds for federal income tax purposes, the City requires bidders to agree to the following, and by submitting a bid, each bidder agrees to the following: If a bid is submitted by a potential underwriter,the bidder confirms that(i)the underwriters have offered or reasonably expect to offer the Bonds to the public on or before the date of the award at the offering price(the "initial offering price")for each maturity as set forth in the bid and (ii)the bidder, if it is the winning bidder, shall require any agreement among underwriters, selling group agreement, retail distribution agreement or other agreement relating to the initial sale of the -6- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-27/SetGO BondSaleSeries2018/POS Bonds to the public to which it is a party to include provisions requiring compliance by all parties to such agreements with the provisions contained herein. For purposes hereof, Bonds with a separate CUSIP number constitute a separate "maturity," and the public does not include underwriters (including members of a selling group or retail distribution group) or persons related to underwriters. If, however, a bid is submitted for the bidder's own account in a capacity other than as an underwriter of the Bonds, and the bidder has no current intention to sell, reoffer, or otherwise dispose of the Bonds,the bidder shall notify the City to that effect at the time it submits its bid and shall provide a certificate to that effect in place of the certificate otherwise required below. If the winning bidder intends to act as an underwriter, the City shall advise the winning bidder at or prior to the time of award whether the competitive sale rule applies. If the City advises the Purchaser that the requirements for a competitive sale have been satisfied and that the competitive sale rule applies, the Purchaser will be required to deliver to the City at or prior to closing an Underwriter's Certificate, substantially in the form attached to the Terms of Offering as to the reasonably expected initial offering price as of the award date. If the City advises the Purchaser that the requirements for a competitive sale have not been satisfied, the Purchaser shall (1) advise the City as soon as practicable after the award, but on the date of the award, whether the underwriters have sold at least 10% of each maturity of the Bonds to the public at the initial offering price, and, if not,the maturities with respect to which that is not the case (the"Undersold Maturities"); (2) from time to time, and upon one or more requests of the City, inform the City in writing of the amounts, times and prices of sales of Bonds that are Undersold Maturities and whether such sales were to the public until, with respect to a maturity, at least 10% of that maturity has been sold to the public at a single price, or, if earlier, the date on which all Bonds of such Undersold Maturity have been sold to the Public; and (3) at or prior to closing, deliver to the City an Underwriter's Certificate substantially in the form attached to the Terms of Offering. The Bonds will be NOT be subject to the "hold-the-offering-price" rule. Any bid submitted pursuant to the Terms of Proposal shall be considered a firm offer for the purchase of the Bonds, and bids submitted will not be subject to cancellation or withdrawal. By order of the City Council of Fairfax, Iowa. Cynthia Stimson City Clerk -7- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-27/SetGO BondSaleSeries2018/1'OS Section 3. The use by Speer Financial, Inc. of the Preliminary Official Statement related to the Bonds, in substantially the form as has been presented to and considered by the City Council, is hereby approved, and Speer Financial, Inc. is hereby authorized to prepare and use the final Official Statement for the Bonds, substantially in the form of the Preliminary Official Statement, but with such changes as are required to conform the same to the terms of the Bonds and the resolution that will be adopted to authorize the issuance of the Bonds, and the appropriate City officials are hereby authorized to execute the final Official Statement for the Bonds, if requested. The Preliminary Official Statement is deemed final by the City, as of its date, within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. Section 4. Pursuant to Section 75.14 of the Code of Iowa, the City Council hereby authorizes the use of electronic bidding procedures for the sale of the Bonds through Speer Auction', and hereby finds and determines that the Speer Auctions 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 5. All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved July 10, 2018. Burnell G. Frieden, Mayor Attest: CyrAhia K. Stlrnson, City Clerk/Treasurer rem -g- DORSEY&WHITNEY LLY,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-27/SetGO BondSaleSeries2018/1'OS STATE OF IOWA COUNTY OF LINN SS: CITY OF FAIRFAX 1, the undersigned, City Clerk of the City of Fairfax, Iowa, do hereby certify that attached hereto is a true and correct copy of the proceedings of the City Council of the City relating to setting a date for the sale of General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018. WITNESS MY HAND this 11 day of July, 2018. 1611�111;a' Cy hia K. Stimson, City Clerk/Treasurer -9- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-27/SetGO BondSaleSeries2018/POS STATE OF IOWA COUNTY OF LINN SS: CITY OF FAIRFAX 1, the undersigned, City Clerk of the City of Fairfax, Iowa, do hereby certify that pursuant to the resolution of its Council setting the date for the sale of General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018, the notice, of which the printed slip attached to the publisher's affidavit hereto attached is a and complete copy, was published on the date specified in such affidavit, which newspaper has a general circulation in the City. WITNESS MY HAND this day of 2018. Cynthia K. Stimson, City Clerk/Treasurer (Attach here publisher's original affidavit with clipping of the notice, as published. -10- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA July 6, 2018 Cynthia Stimson City Clerk/City Hall 300 80t" Street Court/P.O. Box 337 Fairfax, IA 52228-0337 Re: General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018 Our File No. 419915-27 Dear Cynthia: Enclosed are proceedings for use by your City Council on July 10 to hold a public hearing on a loan agreement and to adopt a resolution to set July 24 as the date for the sale of the City's General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018. The notice of bond sale that is included in this resolution must be published once, not less than four nor more than twenty days before July 24, Please scan or fax a copy of the published notice to me. We will appreciate receiving executed copies of these proceedings as soon as they are available. Please contact me if you have any questions. Sincerely, Robert E. Josten Cc by email: Maggie Burger Charlotte Nielsen