MINUTES TO SET DATE FOR SALE OF BONDS AND TO AUTHORIZE OFFICIAL STATEMENT FOR BONDS
435926-30
Monticello, Iowa
April 4, 2016
The City Council of the City of Monticello, Iowa, met on April 4, 2016, at 6:00 o’clock p.m. at the Monticello Renaissance Center, Community Media Center, a/k/a City Council Chambers, 220 E. 1st Street, in the City. The meeting was called to order by the Mayor Pro Tem, and the roll being called, the following named Council Members were present and absent:
Present: Dave Goedken, Brian Wolken, Rob Paulson, Johnny Russ, Chris Lux and Tom Yeoman.
Absent: Mayor Dena Himes.
After due consideration and discussion, Council Member Goedken introduced the following resolution and moved its adoption, seconded by Council Member Russ. The Mayor Pro Tem put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted:
Ayes: Goedken, Russ, Wolken, Paulson, Lux and Yeoman
Nays: none.
Whereupon, the Mayor declared the resolution duly adopted, as hereinafter set out.
• • • •
At the conclusion of the meeting and, upon motion and vote, the Council adjourned.
__________________________________
Tom Yeoman, Mayor Pro Tem
Attest:
__________________________________
Sally Hinrichsen, City Clerk
RESOLUTION NO. 16-41
Resolution setting the date for sale of General Obligation Corporate Purpose and Refunding Bonds, Series 2016 and authorizing the use of a preliminary official statement in connection therewith
WHEREAS, the City of Monticello (the “City”), in Jones County, State of Iowa, previously issued its $1,195,000 Sewer Revenue Refunding Bonds, Series 2008, dated May 12, 2008 (the “2008 Bonds”) a portion of which currently remains outstanding maturing on such dates and in such amounts and bearing interest at such rates as follows as follows:
Year
Principal
Amount
Interest
Rate
2016
$115,000
3.75%
2017
$120,000
3.90%
2018
$125,000
4.00%
2019
$130,000
4.05%
;and
WHEREAS, pursuant to the resolution (the “2008 Bond Resolution”) authorizing the issuance of the 2008 Bonds, the City reserved the right to call the portion of the 2008 Bonds maturing in the years 2017 through 2019 (the “Callable 2008 Bonds”) for early redemption on any date on or after June 1, 2016, subject to the provisions of the 2008 Bond Resolution; and
WHEREAS, the City also previously issued its $3,400,000 General Obligation Urban Renewal Corporate Purpose Bonds, Series 2008B, dated October 15, 2008 (the “2008B Bonds”) a portion of which currently remains outstanding maturing on such dates and in such amounts and bearing interest at such rates as follows as follows:
Year
Principal
Amount
Interest
Rate
2016
$330,000
3.80%
2017
$345,000
4.00%
2018
$360,000
4.00%
2019
$380,000
4.05%
;and
WHEREAS, pursuant to the resolution (the “2008B Bond Resolution”) authorizing the issuance of the 2008B Bonds, the City reserved the right to call the portion of the 2008B Bonds maturing in the years 2017 through 2019 (the “Callable 2008B Bonds”) for early redemption on any date on or after June 1, 2016, subject to the provisions of the 2008B Bond Resolution; and
WHEREAS, the City heretofore proposed to enter into a General Obligation Corporate Purpose and Refunding Loan Agreement (the “Loan Agreement”) and to borrow money thereunder in a principal amount not to exceed $3,000,000 pursuant to the provisions of Section 384.24A of the Code of Iowa for the purpose of paying the cost, to that extent, of (1) current refunding the Callable 2008 Bonds; (2) current refunding the Callable 2008B Bonds; and (3) constructing street, water system, sanitary sewer system and storm water drainage improvements, and has published notice of the proposed action has held a hearing thereon on February 15, 2016; and
WHEREAS, a Preliminary Official Statement (the “P.O.S.”) has been prepared to facilitate the sale of $2,640,000 General Obligation Corporate Purpose and Refunding Bonds, Series 2016 (the “Bonds”) in evidence of the obligation of the City under the Loan Agreement, and it is now necessary to make provision for the approval of the P.O.S. and to authorize its use by Public Financial Management, Inc. (the “Financial Advisor”); and
WHEREAS, it is now necessary to set the date for the sale of the Bonds and to authorize the Financial Advisor to carry out such sale;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Monticello, as follows:
Section 1. The City Clerk is hereby authorized to take such action as shall be deemed necessary and appropriate, with assistance from Dorsey & Whitney, LLP and the Financial Advisor, to set the date of April 18, 2016 as the date for the sale of the Bonds to be issued in evidence of the City’s obligation under the Loan Agreement.
Section 2. The City Administrator and City Clerk are hereby authorized to take such action as shall be deemed necessary and appropriate with the assistance of the Financial Advisor to prepare the P.O.S. describing the Bonds and providing for the terms and conditions of their sale, and all action heretofore taken in this regard is hereby ratified and approved.
Section 3. The use by the Financial Advisor of the P.O.S. relating to the Bonds in substantially the form as has been presented to and considered by the City is hereby approved, and the Financial Advisor is hereby authorized to prepare and use a final Official Statement for the Bonds substantially in the form of the P.O.S. but with such changes therein as are required to conform the same to the terms of the Bonds and the resolution, when adopted, providing for the sale and issuance of the Bonds, and the City Administrator is hereby authorized and directed to execute a final Official Statement for the Bonds, if requested. The P.O.S. as of its date is deemed final by the City within the meaning of Rule 15(c)(2)-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 Financial Advisor to use electronic bidding procedures for the sale of the Bonds through PARITY®, and hereby finds and determines that the PARITY® 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 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 April 4, 2016.
Tom Yeoman, Mayor Pro Tem
Attest:
Sally Hinrichsen, City Clerk
ATTESTATION CERTIFICATE:
STATE OF IOWA
COUNTY OF JONES SS:
CITY OF MONTICELLO
I, the undersigned, City Clerk of the City of Monticello, do hereby certify that attached hereto is a true and correct copy of the proceedings of the City Council of the City relating to fixing a date for the sale of General Obligation Corporate Purpose and Refunding Bonds, Series 2016 and the approval of a preliminary official statement for the issuance of such Bonds.
WITNESS MY HAND this _____ day of _______________, 2016.
Sally Hinrichsen, City Clerk
March 30, 2016
VIA EMAIL
Doug Herman
City Administrator/City Hall
Monticello, Iowa
Re: General Obligation Corporate Purpose and Refunding Bonds, Series 2016
Our File No. 435926-30
Dear Doug:
We have prepared and attach the necessary proceedings to set April 18th as the date for the sale of the General Obligation Corporate Purpose and Refunding Bonds, Series 2016 at the April 4th City Council meeting and to authorize the use of a preliminary official statement in connection therewith.
The proceedings attached include the following items:
1. Minutes of the City Council meeting providing for the adoption of a resolution fixing the date for the sale of Bonds and authorizing the preliminary official statement. The actual resolution follows the minutes.
2. Attestation Certificate attesting to the validity of the transcript.
Prior to the adoption of the resolution, you and the City Council should review the proposed Preliminary Official Statement, which Public Financial Management, Inc. is preparing, carefully for accuracy and to ensure that there are no important facts being left out of the document that might bear any potential risks to bond holders. It should be noted that, while we have reviewed and commented on the portions of the document that are pertinent to our role as bond counsel, we have not engaged in a full due diligence process to investigate the accuracy of financial data or any bond holder risks that are unknown to us.
As soon as possible after the City Council meeting, please return one fully executed copy of all of the completed pages in these proceedings.
If you have any questions, please contact Emily Hammond or me.
Best regards,
John P. Danos
Attachments
cc: Sally Hinrichsen
Matthew Stoffel
Jon Burmeister