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Home My WebLink AboutA003 - Council Action Form dated April 27, 1999 ITEM# DATE APRIL A. 1999 COUNCIL ACTION FORM SUBJECT: TO SET MAY 11, 1999, AS DATE OF HEARING FOR THE AUTHORIZATION TO ISSUE GENERAL OBLIGATION BONDS IN AN AMOUNT NOT TO EXCEED $4,045,000 BACKGROUND: The following essential corporate purpose projects are planned for inclusion in the general obligation bonds proposed for sale in June, 1999: Traffic S Duff/S 16th Turn Lane $ 90,000 S Dakota/US 30 Interchange 500,000 Main Street Redevelopment 1,850,000 Streets W Lway/Widen Beedle West 60,000 Stange Rd Extra Depth/Width 145,000 Arterial 13th/Grand to ML 379,000 Arterial 13th/Grand to Summit 200,000 S Dakota/Todd -N of US 30 100,000 Storm Sewer Southdale Area Storm Sewer 450,000 SE 5th Storm Sewer 100,000 Low Point Ash Ave 100,000 Sub-Total $3,974,000 Issuance Costs 71,000 $4,045,000 Projects originally budgeted for this issue amounted to $4,136,750. However, after reviewing the proposed timing of the projects included in this total, we are able to delay $2,201,705 worth of projects until a later date. These delayed projects include Lincoln Way& Grand Intersection, 13th and Duff Intersection, Cy Ride Route Duff 20th to 24th and Low Point Burnett. In addition, a number of projects originally proposed for 1999/2000 were moved forward to this issue. These projects, totaling $1,750,000, include Main Street Redevelopment, Arterial 13th& Grand to Summit, South Dakota Todd North of US 30, and all of the Storm Sewer Projects. Additional projects needing funds, as included in the 1998/99 amendments, are West Lincoln Way Widen Beedle West($60,000) and Stange Road Extra Depth and Width ($145,000). ALTERNATIVES: 1. Establish May 11, 1999, as the date to take action to authorize the issuance of general obligation bonds not to exceed$4,045,000. 2. Delay the hearing on the issuance of general obligation bonds. MANAGER'S RECOMMENDED ACTION: It is the recommendation of the City Manager that the City council adopt Alternative#1, establishing May 11, 1999, as the date to take action to authorize the issuance of general obligation bonds not to exceed$4,045,000. COUNCIL ACTION: 05 06 99 THU 10:40 FA1 51.5 283 1060 DORSEI' � tt'HIT�EI' �tir)1 DORSEY & WHITNEY LLP is u IJIWWe LZUR)'Pu —,,,hhp 807 0PAND, SUITE 39nih DES MOINE$, fA 50309 FAC$ZTILE COVER SHEET (515)283-1060 THE INFORNLATtON CONTALNED IN THIS FACSIMILE NWSSAGE IS LEGAL(Y PRIVILEGED AND CONFIDEN"TLr1L. rNFOILN"TION INTENDED SOLELY FOR THE USE OF THE PERSONS OR ENTITIES NAArED BELOW. IF YOU ARE NOT SUCH PERSONS OR ENTITIES, YOU ARE BEREBY NOTMED THAT ANY DISTRIBUTION, DISSEMINATION OR REPRODUCTION OF THIS FACSPtULE MESSAGE IS STRICTLY PROFIIBITED. IF YOU RAVE RE.C.EWED TIRS NIE,SAGE4 IN ERROR,PLEASE II D IEDIATELY CALL U?S COLLECT AT(515}283-1000. Date: May 5, 1999 Total Number Of Pages (including this Cover Sheet): To: Diane R. Voss Fax # (515) 239-5142 City: Ames, Iowa From: Jearle Harrison Telephone: 515-283-1000 Comments: Here is the resolution far the May 11 Council meeting. We will mail complete transcripts to you today. Let me know if ylou have any questions or if there is anything else you need. P.S. I did have a different fax number for you (239-5262)--is that still a good number' Qnginal will be sent via(circle one)s X Mail Messenger Air Courier Will not be sent PLEASE CONTACT FACSIMILE OPERATOR S ARAH AT (515)283-1000 1F TRANSMISSION IS INCOMPLETE CAR CANNOT BE READ. Reference # 4I9370-21 Ua 9 THL' 1.V:4 o FAX S35, 2g1 106t) IORSEY & ss'HITNEY f�fi002 Ar ies1419370.2It2nd 5i Rrg/Ist 4i GBS RESOLUTION NCI. Determining to proceed with the issuance and fixing the date for the sale of $4,045,000 General Obligation Corporate Purpose Bonds and providing for the advertisement of such sale WHEREAS,pursuant to the provisions of Chapter 384 of the Code of Iowa,the City Council of Ames, Iowa(the"City"), has heretofore proposed the issuance of$4,045,000 General Obligation Corporate Purpose Bonds (the "Bonds") for the purpose of paying the cost, to that extent, of constructing certain street and storm sewer improvements and has published notice of the proposed action and has held a hearing thereon; and WHEREAS, the City desires to offer the Bonds for public sale and to provide for the advertisement of such sale; NOW, THEREFORE, BE IT RESOLVED by the Cite Council of the City of Ames, Iowa, as follows: Section 1. The Council horeby deterniines to proceed with the issuance of the.Bonds and declares that this resolution constitutes the "additional action" required by Section 384.25 of the Code of Iowa. Section 2, The 25th day of May, 1999, at the Council Chambers, City Hall, in the City, at 10:00 o'clock a.m., is hereby fixed as the time and place for receiving and canvassing bids and considering and passim; a resolution providing for the award and issuance of the Bands, and the Council shall meet at said time and place for such purpose, and the City Clerk is hereby authorized and directed to Publish notice of the said sale, as provided by Chapter 75 of the. Code of Iowa. The. notice shall be in substantially the follo,,&qng forrn: -2- DORSEY&V=NEY UP,ATTORNEYS,DES MO]IvES.IOWA ■ 99 THL' 113-10 FAQ K 51; 2,53 1060 DOR.SEY �p1.).3 Ames/419370-2I N/Salt NOTICE OF SALE City of Ames, Iowa $4,045,000 General Obligation Corporate Purpose Bonds Sealed bids will be received on behalf of the City of Ames, Story County, Iowa, until 10:00 o'clock a.m.on the 25th day of May, 1999, at the Council Chambers, City Hall, Ames, Iowa, for the purchase of$4,045,000 General Obligation Corporate Purpose Bonds 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 mooting to tie held at 7:00 o'clock p.m. on the same date at the Council Chambers,City Hall, Ames,Iowa, at which time the Bonds will be sold to the best bidder for cash. No open buts 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 June 1, 1999, will bear interest payable semiannually on each June 1 and December 1 to maturity, commencing December 1, 1999, and will mature on June 1 in the following years and amounts: Principal Principal year Amount Year Amount 2000 $275,000 2006 $340,000 2001 $285,000 2007 $350,000 2001,2 $295,000 2008 $365,000 2003 $305,000 2009 $380,000 2004 $315,000 2010 $395,000 2005 $325,000 20i 1 $415,000 The right is resen ed to the City to call and redeem all of the said Bonds maturing in the years 2008 to 2011, inclusive, in whale or,From time to tirne in part, in one or more units of$5,000, on June 1, 2007, or on any date thereafter prior to maturity (and within a maturity by lot), upon terms of par and accrued interest. Bidders must specify a price of not less than $4,012,640, 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$40,450 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. The City reserves the right to reject any,or all bids and to waive irregularities in any bid. -3. DORSEY&W_rrrNHY L.LP,ATTORNEYS,DES MOINE5,IOWA ■ v-3 ot 99 THU FA-1 •517, 2,5,E 1060 LORSEY Amc4l4193 i 0-21 N/Sale 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. In order to permit bidders for the Bonds and other participating underwriters in the primary offering of the Bonds to comply with paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 (:the "Rule"), the. City will covenant and agree, for the benefit of the registered holders and beneficial owners from time to time of the outstanding Bonds, in the resolution awarding the sale and prescribing the terms of the Bonds, to provide annual reports of specified information and notice of the occurrence of certain events, if material. The City is the only "obligated person"with respect to the Bonds within the meaning of the Rule for the purposes of disclosing information on an ongoing basis. A description of the undertaking is set forth in the Official Statement. Failure of the City to enter into an undertaking substantially similar to that described in the Official Statement would relieve the successful bidder of its obligation to purchase the Bonds. The. City has complied in all material respects with any undertaking previously entered into by it under the Rule. 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 Iatter shall control, By order of the City Council of Ames, Iowa. Diane R. Voss City Clerk -4- r?ORSEY&W'HrrNEY LLP,ATTORNEYS,MS 1,101NP5,IOWA kaS r.)k� 91 THLT 10:41 FAX 51S 2g3 1080 DORSEY tr Y4HITNEY �a?o Ames/41937 U-21/N/Sale Section 3. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved May 11, 1999. Mayor Attest. City Clerk -s- DORS£YY&W11rrN'EY LLP,ATTORNEYS,OPTS MOVES,IOWA ■