The URL can be used to link to this page

Home My WebLink AboutA002 - Proceedings from September 10, 2002 meeting Ames/419370-New/1'%:RBS(Ser 2002D) MINUTES TO SET DATE FOR HEARING ON ISSUANCE AND SALE OF ELECTRIC Please Rat=To REVENUE REFUNDING BONDS, SERIES DORSEY&WHITNEY 2002D ATTORNEYS AT�_,tW fin, `- " 419370-New Ames, Iowa September 10, 2002 The Council of the City of Ames, Iowa, met on September 10, 2002, at seven o'clock —P,.m., at the Council Chambers, City Hall, in the City. The Mayor presided and the roll was called showing the following Council Members present and absent: Present: iCross, Goodhue, Hoffman Qui rmhach yeooa Wirth Absent: None Council Member Hof€ten introduced the resolution hereinafter next set out and moved its adoption, seconded by Council Member Wi rth ; and after due consideration thereof by the Council, the Mayor put the question upon the adoption of said resolution, and the roll being called,the following named Council Members voted: Ayes: Cross, Goodhue, Hoffman, Quirmbach, Vegge,—Wirth Nays: —None Whereupon, the Mayor declared the said resolution duly adopted, as hereinafter set out. -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-New/1''/2 RBS(Ser 2002D) RESOLUTION NO. 09_ 79C Fixing a date of meeting at which it is proposed to take action for the issuance and fixing a date for the sale of not to exceed $8,120,000 Electric Revenue Refunding Bonds, Series 2002D, and providing for the advertisement of such sale WHEREAS, the City of Ames, Iowa (the "City"), proposes to issue not to exceed $8,120,000 Electric Revenue Refunding Bonds, Series 2002D (the "Refunding Bonds"), pursuant to the provisions of Division V of Chapter 384 of the Code of Iowa for the purpose of paying the cost, to that extent, of refunding the City's outstanding $9,985,000 Electric Revenue Refunding Bonds, Series 1993, dated May 1, 1993, 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 Refunding Bonds and to give notice thereof as required by such law; NOW, THEREFORE, It Is Resolved by the Council of the City of Ames, Iowa, as follows: Section 1. This Council shall meet on the 24 h day of September, 2002, at the Council Chambers, City Hall, in the City, at seven o'clock --R.m., at which time and place proceedings will be instituted and action taken for the issuance of the Refunding Bonds. Section 2. The City Clerk is hereby directed to give notice of the proposed action for the issuance of the Refunding 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 4 nor more than 20 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 LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-New/1n'/z RBS(Ser 2002D) NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS FOR THE ISSUANCE OF NOT TO EXCEED $8,120,000 ELECTRIC REVENUE REFUNDING BONDS, SERIES 2002D The City Council of the City of Ames, Iowa, will meet on the 20, of September, 2002, at the Council Chambers, City Hall, in the City, at _, o'clock _p_.m., for the purpose of instituting proceedings and taking action for the issuance of not to exceed $8,120,000 Electric Revenue Refunding Bonds, Series 2002D (the "Refunding Bonds"), for the purpose of paying the cost, to that extent, of refunding the City's outstanding $9,985,000 Electric Revenue Refunding Bonds, Series 1993, dated May 1, 1993. The Refunding Bonds, when issued, will not constitute general obligations of the City, nor will they be payable in any manner by taxation but, together with any additional electric revenue obligations of the City as may be hereafter issued and outstanding from time to time, ranking on a parity therewith, will be payable solely and only from the Net Revenues of the Municipal Electric Light and Power Plant and System of the City. The Refunding Bonds are proposed to be issued pursuant to authority contained in Division V of Chapter 384 of the Code of Iowa. At the aforementioned time and place, oral or written objections may be filed or made to the issuance of the Refunding Bonds as provided by Section 384.83 of the Code of Iowa. After receiving objections, the Council may take action for the issuance of the Refunding Bonds, in which case, the decision will be final unless appealed to the District Court within fifteen(15) days thereafter. Diane R. Voss City Clerk -3- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-New/1''/z RBS(Ser 2002D) Section 3. Sealed bids for the purchase of the Refunding Bonds shall be received and canvassed on behalf of the City at 11:00 o'clock a.m. on the 241h day of September, 2002, at the Council Chambers, City Hall, in the City, and the City Council shall meet on the same date at seven o'clock _.m., at the Council Chambers, City Hall, in the City, for the purpose of considering such bids received and considering and passing a resolution providing for the sale and issuance of the Refunding Bonds. Section 4. The City Clerk is authorized and directed to publish notice of said sale, as provided by Chapter 75 of the Code of Iowa, in substantially the following form: -4- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-New/1"'/z RBS(Ser 2002D) NOTICE OF SALE City of Ames, Iowa $7,620,000* Electric Revenue Refunding Bonds, Series 2002D Sealed bids will be received on behalf of the City of Ames, Story County, Iowa until 11:00 o'clock a.m. on the 24th day of September, 2002, at the offices of City Clerk, City Hall, 515 Clark Avenue, Ames, Iowa 50010, for the purchase of $7,620,000* Electric Revenue Refunding Bonds, Series 20021), 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 GPVPn o'clock , 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 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 October 15, 2002, will bear interest payable semiannually on each January 1 and July 1 to maturity, commencing January 1, 2003, and will mature on January 1 in the following years and amounts: Principal Principal Year Amount Year Amount 2003 $ 215,000* 2006 $1,820,000* 2004 $1,750,000* 2007 $1,860,000* 2005 $1,780,000* 2008 $ 195,000* *The aggregate principal amount of the Bonds, and each scheduled maturity thereof, are subject to increase or reduction by the City or its designee after the determination of the successful bidder. Such adjustments shall be made within no more than two hours of the time of proposal opening and shall be in the sole discretion of the City or its designee and will not exceed $500,000 in total and $125,000 for any annual maturity, except that the maximum allowable adjustment in 2003 is $50,000, and the maximum allowable adjustment in 2008 is $95,000; provided that the City or its designee shall only make such adjustments in order to size the Bonds to provide enough funds to effect the refunding in accordance with federal income tax laws and to establish a debt service structure that is acceptable to the City. *The dollar amount of the purchase price proposed by the successful bidder will be changed if the aggregate principal amount of the Bonds is adjusted as described above. Generally any premium offered or discount taken will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced provided that the City's financial advisor will make every effort to ensure that the net compensation to the successful bidder as a percentage of the adjusted par amount does not increase or decrease from what it would have been if no adjustment had been made to the principal amounts shown in the maturity schedule above. None of the Bonds will be optional for redemption prior to maturity. -5- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-New/1"'/z RBS(Ser 2002D) Bidders must specify a price of not less than $7,581,900 and not more than $8,001,000, 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$76,200 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. The Bonds are being issued pursuant to the provisions of Division V of Chapter 384 of the Code of Iowa and will not constitute general obligations of the City, nor will they be payable in any manner by taxation, and the Bonds,together with any additional electric revenue obligations as may be hereafter issued and outstanding from time to time ranking on a parity therewith, will be payable solely and only from the future Net Revenues of the Municipal Electric Light and Power Plant and System of the City. 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 latter shall control. By order of the City Council of Ames, Iowa. Diane R. Voss City Clerk -6- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-New/1'%RBS(Ser 2002D) 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 September 10, 2002. Mayor Attest: City Clerk -7- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-New/1"'/2 RBS(Ser 2002D) At the conclusion of the meeting, and upon motion and vo the Council adjourned. Mayor Attest: City Clerk -8- DORSEY&WMTNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-New/1"'/2 RBS(Ser 2002D) STATE OF IOWA COUNTY OF STORY SS: CITY OF AMES I, the undersigned, Clerk of the aforementioned City, do hereby certify that attached hereto is a true and correct copy of the proceedings of the Council of the City relating to the fixing of a date for the hearing on the issuance and fixing the date for the sale of Electric Revenue Refunding Bonds, Series 2002D, and providing for the advertisement for such sale. WITNESS MY HAND and the seal of the City hereto affixed this 1 C)tL day of September , 2002. City Clerk (Seal) -9- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA