MINUTES TO RECEIVE BIDS AND SELL BONDS
435926-29
Monticello, Iowa
September 15, 2014
The City Council of the Monticello, Iowa, met on September 15, 2014, at 6:00o’clock p.m., at the Mary Lovell LeVan, Monticello Renaissance Center, Community Media Center, 220 East First 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: Bill Meyer, Frank Yanda, Johnny Russ, Chris Lux and Tom Yeoman
Absent: Dave Goedken.
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 2014 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
(true interest cost)
UMB Bank, Kansas City, MO 2.0042%
See Attachment for Tabulation of Bids
After due consideration and discussion, Council Member Russ introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Yanda. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted:
Ayes: Russ, Yanda, Lux and Yeoman
Nays: Meyer.
Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out.
RESOLUTION NO. 14-100
Awarding General Obligation Corporate Purpose Bonds, Series 2014
WHEREAS, the City of Monticello (the “City”), in Jones County, State of Iowa, pursuant to the provisions of Section 384.24A of the Code of Iowa, heretofore proposed to enter into a General Obligation Loan Agreement (the “Essential Purpose Loan Agreement”) and to borrow money thereunder in a principal amount not to exceed $1,335,000 for the purpose of paying the costs, to that extent, of designing and constructing street, bridge and sanitary sewer system improvements, installing street lighting improvements and making improvements to existing municipal parks, and has published notice of the proposed action and has held a hearing thereon on September 2, 2014; and
WHEREAS, the City also proposed to enter into a General Obligation Loan Agreement (the “General Purpose Loan Agreement”) and to borrow money thereunder in a principal amount not to exceed $215,000 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 and installing improvements to municipal green space and parking lots in the downtown area, and as of September 2, 2014, no petition had been filed with the City asking that the question of entering into the General Purpose Loan Agreement be submitted to the registered voters of the City; and
WHEREAS, pursuant to the provisions of Section 384.24A of the Code of Iowa, the City also proposed to enter into a General Obligation Loan Agreement (the “Community Building Loan Agreement”) and to borrow money thereunder in a principal amount not to exceed $400,000 for the purpose of paying the cost, to that extent, of constructing and installing repairs and improvements to the municipal community building, and as of September 2, 2014, no petition had been filed with the City asking that the question of entering into the Community Building Loan Agreement be submitted to the registered voters of the City; and
WHEREAS, pursuant to Section 384.28 of the Code of Iowa, the City Council has heretofore determined to combine the Essential Purpose Loan Agreement, the General Purpose Loan Agreement and the Community Building Loan Agreement into a single loan agreement (the “Loan Agreement”) and to issue General Obligation Corporate Purpose Bonds, Series 2014 (the “Bonds”) in evidence of its obligations thereunder; and
WHEREAS, a Preliminary Official Statement (the “P.O.S.”) has been prepared to facilitate the sale of 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 UMB Bank, Kansas City, Missouri (the “Purchaser”), is the best, such bid proposing the lowest interest cost to the City for the Bonds; and
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 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. The City shall enter into the Loan Agreement with 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 $1,595,000 for the purpose or purposes set forth in the preamble hereof.
Section 4. 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 October 6, 2014.
Section 5. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
Section 6. This resolution shall be in full force and effect immediately upon its adoption and approval, as provided by law.
Passed and approved September 15, 2014.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
• • •
Upon motion and vote, the meeting was adjourned.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
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 Bonds, Series 2014 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 ___________, 2014.
Sally Hinrichsen, City Clerk
September 10, 2014
Doug Herman
City Administrator/City Hall
Monticello, Iowa
Via Email
Re: General Obligation Corporate Purpose Bonds, Series 2014
Our File No. 435926-29
Dear Doug:
We have prepared and attach the necessary proceedings to be used at next week’s Council meeting to report the bids received and to adopt the resolution approving the sale of General Obligation Corporate Purpose Bonds, Series 2014 to the best bidder.
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.
The proceedings attached include the following items:
1. Resolution awarding the sale of the Bonds and providing for the adjournment of action on the Loan Agreement to October 6, 2014 for adoption of the issuance resolution.
2. Certificate attesting the transcript.
As these proceedings are completed, please return one fully executed copy to our office.
If you have any questions, please contact me.
Best regards,
John P. Danos
Attachments
cc: Sally Hinrichsen
Public Financial Management, Inc.