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Home My WebLink AboutA001 - Letter to Mayor and Council dated November 19, 1993 r ARAES Limit alai TO: Mayor Curtis City Council FROM: Alice Carroll, Director of Finance DATE : November 19 , 1993 SUBJECT: 1993 G.O. Bonds - $3,825, 000 The attached Bond Resolution sets December 14 , 1993 as the date of hearing to authorize the issue of $3,825,000 General Obligation essential corporate purpose bonds . This issue is intended to cover CIP projects approved in the 1993-94 Budget. The specific projects and costs are: Campustown Improvements $ 600,000 Solid Waste Plan Improvements (Design) 600, 000 Streets : Cy-Ride Route Reconstruction 500, 000 Elwood Drive US 30 to Lincolnway 502,481 Arterial Street Rehab 300, 000 US 69 ( Issued Bonds in 192 - actual (216 , 600) cost less than amount issued) Reconstruct Westbrook Drive 180, 000 E. Lincolnway Frontage Road Paving 125, 000 Bloomington Road Paving 125,000 Water Projects 1, 050, 000 3, 765, 881 Issuance costs and discount 59 , 119 3, 825, 000 The debt service for the water projects and the Solid Waste Plant Improvements design will be repaid from revenues of the Water fund and Resource Recovery fund and therefore has no effect on the debt service levy. The debt is structured so the Resource Recovery portion will be repaid before the current contracts with participating municipalities expire ( 1998-99 ) . The bid opening is scheduled for 2 : 00 p.m. Tuesday, December 14, 1993 . Council approval of the sale will take place after the hearing at the December 14, 1993 meeting. AJC/wa DOC: MO1993GO.BDS Ames\419370-12\1st 1/2 GBS RESOLUTION NO. To fix a date of meeting at which it is proposed to take action for the sale and issuance of $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994 WHEREAS, the City of Ames, Iowa (the "City"), proposes to issue $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994 (the "Bonds"), pursuant to the provisions of Division III of Chapter 384 of the Code of Iowa for the purpose of paying the cost, to that amount, of the construction and equipping of works and facilities useful for the collection and disposal of solid waste; the construction, reconstruction and repair of street improvements; and the construction, reconstruction, improvement, extension and equipping of the Municipal Waterworks System of the City, and it is necessary to fix a date of meeting of the Council at which it is proposed to take action for the issuance of the Bonds and to give notice thereof as required by such law; and the City desires to authorize the sale and issuance of the Storage Tank Project Bonds; NOW, THEREFORE, It Is Resolved, by the Council of the City of Ames, Iowa, as follows: Section 1. This Council shall meet on the 14th day of December, 1993, at the Council Chambers, Administrative Building, in the City, at 7:00 o'clock p.m., at which time and place proceedings will be instituted and action taken for the issuance of the Bonds. Section 2. The City Clerk is hereby directed to give notice of the proposed action for the issuance of the Bonds setting forth the amount and purpose thereof, the time when and place where the said meeting will be held, by publication at least once, and not less than four nor more than twenty days before the meeting, in a legal newspaper published at least once weekly, and of general circulation in the City. The notice shall be in substantially the following form: -2- DORSEY&WHITNEY,ATTORNEYS,DES MOINES,IOWA Ames\419370-12\1 st 1/2 GBS NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS FOR THE ISSUANCE OF $3,825,000 GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 1994 The City Council of the City of Ames, Iowa, will meet on the 14th day of December, 1993, at the Council Chambers, Administrative Building, in the City, at 7:00 o'clock p.m., for the purpose of instituting proceedings and taking action for the issuance of $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994, for the purpose of paying the cost, to that extent, of the construction and equipping of works and facilities useful for the collection and disposal of solid waste; the construction, reconstruction and repair of street improvements; and the construction, reconstruction, improvement, extension and equipping of the Municipal Waterworks System of the City. The Bonds, when issued, will constitute general obligations of the City, payable from taxes levied upon all taxable property in the City. At such time and place the Council shall receive oral or written objections from any resident or property owner of the City. After receiving objections, the City may determine to issue the Bonds, in which case, the decision will be final unless appealed to the District Court within fifteen (15) days thereafter. , By order of the City Council and pursuant to Section 384.25 of the Code of Iowa. Sandra L. Ryan City Clerk -3- DORSEY&WHITNEY,ATTORNEYS,DES MOINES,IOWA Ames\419370-12\1st 1/2 GBS Section 3. Sealed bids for the purchase of the Bonds shall be received and canvassed on behalf of the City on the 14th day of December, 1993, at 2:00 o'clock p.m., at the Council Chambers, Administrative Building, Ames, Iowa, and the City Council shall meet on said date at 7:00 o'clock p.m., at the Council Chambers, Administrative Building, Ames, Iowa, for the purpose of considering such bids received and passing a resolution providing for the sale and issuance of the Bonds. Section 4. The City Clerk is hereby authorized and directed to take such actions as shall be deemed necessary and appropriate, with the assistance of Dorsey & Whitney, Attorneys, as Bond Counsel, and Evensen Dodge, Inc., as Financial Consultants, for the City, to prepare a statement of information and solicitation for bids describing the Bonds and providing for the terms and conditions of their sale and to publish notice of said sale in substantially the form hereinafter set out, as provided by Chapter 75 of the Code of Iowa: -4- DORSEY&WHITNEY,ATTORNEYS,DES MOINES,IOWA Ames\419370-12\1 st 1/2 GBS NOTICE OF SALE City of Ames, Iowa $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994 Sealed bids will be received on behalf of the City of Ames, Story County, Iowa, until 2:00 o'clock p.m. on the 14th day of December, 1993, at the Council Chambers, Administration Building, Ames, Iowa, for the purchase of $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994, of the City, at which time such bids will be opened and canvassed. Thereafter such bids will be presented to the City Council for consideration at its meeting to be held at 7:00 o'clock p.m. on the same date at the Council Chambers, Administrative Building, Ames, Iowa, at which time the Bonds will be sold to the best bidder for cash. No open bids will be accepted. The Bonds will be issued as fully registered bonds in denominations of $5,000 or any integral multiple thereof, will be dated January 1, 1994, will bear interest payable semiannually on each June 1 and December 1 to maturity, commencing June 1, 1994, and will mature on June 1 in the following years and amounts: Principal Principal Year Amount Year Amount 1994 $300,000 2000 $290,000 1995 $420,000 2001 $290,000 1996 $420,000 2002 $290,000 1997 $415,000 2003 $290,000 1998 $410,000 2004 $290,000 1999 $410,000 The right is reserved to the City to call and redeem all of the said Bonds maturing in the years 2003 and 2004, inclusive, in whole or from time to time in part, in one or more units of $5,000, prior to maturity (and within a maturity by lot), on June 1, 2002, or on any date thereafter, upon terms of par and accrued interest. Bidders must specify a price of not less than $3,794,400, plus accrued interest. The legal opinion of Dorsey & Whitney, Attorneys, Des Moines, Iowa, will be furnished the City. A good faith deposit of $38,250 is required and may be forfeited to the City in the event the successful bidder fails or refuses to take and pay for the Bonds. -5- DORSEY&WHITNEY,ATTORNEYS,DES MOINES,IOWA Ames\419370-12\1 st 1/2 GBS The Bonds are being issued pursuant to the provisions of Division III of Chapter 384 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. Bidders should be aware that the official terms of offering to be published in 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. By order of the City Council of Ames, Iowa. Sandra L. Ryan City Clerk -6- DORSEY&WHITNEY,ATTORNEYS,DES MOINES,IOWA Ames\419370-12\1st 1/2 GBS Section 5. All resolutions or parts of resolutions in conflict herewith be and the same are hereby repealed to the extent of such conflict. Passed and approved November 23, 1993. Mayor Attest: City Clerk -7- DORSEY&WHITNEY,ATTORNEYS,DES MOINES,IOWA