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Home My WebLink AboutA032 - Letter from Diane Voss dated August 29, 2012 515 Clark Avenue, P. O. Box 811 caring P""' Qu,"t,P.ogrums Ames,IA 50010 Exceptional Service Phone: 515-239-5105 Fax: 515-239-5142 August 29, 2012 Dorsey & Whitney LLP 801 Grand, Suite 3900 Des Moines, Iowa 50309 Attention Robert E. Josten RE: Ames, Iowa General Obligation Corporate Purpose Bonds, Series 2012 Your File No. 419370-46 Dear Bob: Enclosed please find the proceedings from the August 28, 2012, meeting wherein the Council adopted Resolution No. 12-464 awarding the sale of the above-referenced Bonds. Thank you for your assistance. Sincerely, Diane R. Voss City Clerk /dry Enclosure Anws419370-46/Sale GO SALE OF GENERAL OBLIGATION CORPORATE PURPOSE BONDS 419370-46 Ames, Iowa August 28, 2012 The City Council of the City of Ames, Iowa, met on August 28, 2012, at 7:00 o'clock p.m., at the City Hall Council Chambers, in the City. The meeting was called to order by the Mayor, and the roll was called showing the following Council Members present and absent: Present: Goodman, Larson, Orazem, Szopinski, Wacha Absent: Davis 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 2012, the City Clerk announced that bids had been received and canvassed on behalf of the City at the time and place fixed therefor. 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 (interest cost) (ATTACH BID TABULATION) After due consideration and discussion, Council Member Wacha introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Szopinski. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted: Ayes: Goodman, Larson, Orazem, Szopinski, Wacha Nays: Davis Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out. -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA TABULATION OF BIDS City of Ames, Iowa $13,215,000* General Obligation Corporate Purpose Bonds, Series 2012 AWARD: ROBERT W.BAIRD & CO.,INC. RATING: Mood 's Investors Service `Aaa' SALE DATE: August 28, 2012 COUPON NET INTEREST COST PURCHASE NAME OF BIDDER RATE YEAR &TRUE INTEREST RATE PRICE ROBERT W.BAIRD&CO.,INC. 1.500% 2013 $2,480,327.35* $13,892,822.65* Milwaukee,Wisconsin 2.000% 2014-2016 C.L.KING&ASSOCIATES 3.000% 2017-2032 2.2137%* New York,New York FIDELITY CAPITAL MARKETS Chicago,Illinois EDWARD D.JONES&CO. Saint Louis,Missouri CREWS &ASSOCIATES Little Rock,Arkansas LOOP CAPITAL MARKETS,LLC New York,New York KILDARE CAPITAL Philadelphia,Pennsylvania COASTAL SECURITIES,INC. Houston,Texas DAVENPORT&CO.,LLC Richmond,Virginia SAMCO CAPITAL MARKETS,INC. Houston,Texas WILLIAM BLAIR& COMPANY,L.L.C. Chicago,Illinois CORBY CAPITAL MARKETS,INC. Boston,Massachusetts NORTHLAND SECURITIES,INC. Minneapolis,Minnesota ROSS SINCLAIRE ASSOCIATES,LLC Cincinnati,Ohio CRONIN &CO.,INC. Minneapolis,Minnesota ISAAK BOND INVESTMENTS,INC. Denver,Colorado INCAPITAL LLC Chicago,Illinois FIRST SOUTHWEST COMPANY Dallas,Texas COUNTRY CLUB BANK,N.A. Prairie Village,Kansas CASTLE OAK SECURITIES Chicago,Illinois J.J.B.HILLIARD,W.L.LYONS,LLC Louisville, Kentucky * Subsequent to the receipt of bids, the City decreased the aggregate par amount of the Bonds to $12,660,000.00. The resulting Purchase Price decreased to $13,299,746.34, the True Interest Rate increased to 2.2190% and the Net Interest Cost decreased to $2,370,336.99. The PFM Group 801 Grand Avenue,Suite 3300 Des Moines,Iowa 50309 -2600(515)243 $13,215,000* Gengral Obligation Corporate Purpose Bonds, Series 2012 City of Ames, Iowa Tuesday, August 28, 2012 Page 2 COUPON NET INTEREST COST PURCHASE NAME OF BIDDER RATE YEAR &TRUE INTEREST RATE PRICE JEFFERIES & COMPANY,INC. 2.000% 2013-2022 $2,499,423.93 $13,465,509.40 New York, New York 3.000% 2023-2032 2.2690% HUTCHINSON,SHOCKEY,ERLEY & CO. 1.500% 2013-2018 $2,499,157.77 $13,324,796.40 Chicago, Illinois 2.000% 2019-2021 2.250% 2022-2023 2.2804% 3.000% 2024-2032 PIPER JAFFRAY & CO. 1.500% 2013 $2,592,798.58 $13,818,466.00 Minneapolis, Minnesota 2.000% 2014-2015 3.000% 2016-2031 2.3249% 3.125% 2032 JANNEY MONTGOMERY SCOTT LLC 1.500% 2013 $2,592,833.67 $13,794,820.50 Philadelphia,Pennsylvania 2.000% 2014-2016 3.000% 2017-2030 2.3250% 3.100% 2031 3.150% 2032 CITIGROUP GLOBAL MARKETS INC. 1.500% 2013 $2,731,391.77 $13,672,374.90 Chicago,Illinois 2.000% 2014-2015 UBS, SECURITIES LLC 3.00% 2016-2032 2.4690% Chicago, Illinois J.P.MORGAN SECURITIES LLC New York, New York INCAPITAL LLC Chicago, Illinois Ames419370-46/Sale GO RESOLUTION NO. 12-464 Awarding Sale of General Obligation Corporate Purpose Bonds, Series 2012 WHEREAS, the City of Ames (the "City"), in Story County, State of Iowa, has heretofore proposed to enter into a General Obligation Loan Agreement (the "Loan Agreement") in a principal amount not to exceed $13,150,000 pursuant to the provisions of Section 384.24A of the Code of Iowa for the purpose of paying the costs, to that extent, of constructing improvements to streets, water and sanitary sewer lines; carrying out flood mitigation projects; rehabilitating city parks; and replacing a city park bicycle/pedestrian bridge that was damaged by flooding, and has published notice of the proposed action and has held a hearing thereon; and WHEREAS, pursuant to a referendum, City voters authorized the City Council to enter into a loan agreement and issue up to $18,000,000 General Obligation Bonds for the purpose of expanding the Ames Public Library; and WHEREAS, pursuant to advertisement of sale, bids for the purchase of General Obligation Corporate Purpose Bonds, Series 2012 (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 City's financial advisor has determined that the bid of Robert W. Baird & Co., Inc., (the "Purchaser"), is the best, such bid proposing the lowest interest cost to the City; NOW, THEREFORE, It Is Resolved by the City Council of the City of Ames, Iowa, as follows: Section 1. The City shall enter into the Loan Agreement with the Purchaser in substantially the form as will be placed on file with the Council, providing for a loan to the City in the principal amount of$12,660,000, for the purposes set forth in the preamble hereof. The Mayor and City Clerk are hereby authorized and directed to sign the Loan Agreement on behalf of the City, and the Loan Agreement is hereby approved. Section 2. The bid of the Purchaser referred to in the preamble is hereby accepted, and the Bonds, in the principal amount of $12,660,000 are hereby awarded to the Purchaser at the price specified in such bid, together with accrued interest. Section 3. 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. -2- DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames419370466 Sale GO Section 4. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved August 28, 2012. E ayor Attest* City Clerk Upon motion and vote,the meeting was adjourned. Mayor Attest: City Clerk -3- DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames41931046/.Sale GO STATE OF IOWA COUNTY OF STORY SS: CITY OF AMES I, the undersigned, City Clerk of the City of Ames, 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 2012, 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 of�� dayofALA6tCtSb , 2012. City Clerk (Attach here a copy of the bid of the successful bidder.) -4- DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Upcoming Calendar Overview Result Excel 4 Robert W. Baird &Co., Inc.- Milwaukee ,WI's Bid j ! ::42. a Ames $13,215,000 General Obligation Corporate Purpose Bonds, Series 2012 For the aggregate principal amount of$13,215,000.00,we will pay you$13,892,822.65,plus accrued interest from the date of issue to the date of delivery.The Bonds are to bear interest at the following rate(s): Maturity Date Amount$Coupon%Yield%Dollar Price 06/01/2013 790M 1.5000 0.2800 100.811 06/01/2014 800M 2.0000 0.4000 102.654 O6/01/2015 810M 2.0000 0.5000 103.968 06/01/2016 835M 2.0000 0.6000 105.069 06/01/2017 865M 3.0000 10.8000 110.056 06/01/2018 895M 3.0000 1.0700 110.583 06/01/2019 925M 3.0000 1.3300 110.619 06/01/2020 955M 3.0000 1.5800 110.213 06/01/2021 990M 3.0000 1.7800 108.705 06/01/2022 1,025M 3.0000 1.9000 107.811 06/01/2023 1,060M 3.0000 12.0600 106.633 06/01/2024 1,095M 3.0000 2.2000 105.613 06/01/2025 240M 3.0000 2.3500 104.533 06/01/2026 250M 3.0000 2.4500 103.821 06/01/2027 255M 3.0000 2.5500 103.113 06/01/2028 265M 3.0000 2.6500 102.411 06/01/2029 275M 3.0000 12.7500 101.715 06/01/2030 285M 3.0000 2.85001 101.024 06/01/2031 295M 3.0000 2.95001 100.338 06/01/2032 305M 3.0000 3.0000 100.000 Total Interest Cost: $3,158,150.00 Premium: $677,822.65 Net Interest Cost: $2,480,327.35 TIC: 2.213758 Time Last Bid Received On:08/28/2012 10:56:15 CDST This proposal is made subject to all of the terms and conditions of the Official Bid Form,the Official Notice of Sale,and the Preliminary Official Statement,all of which are made a part hereof. Bidder: Robert W.Baird&Co.,Inc.,Milwaukee,WI Contact: Drew Kanyer Title: Tel ep hone:414-765-7331 Fax: Issuer Name: City of Ames Company Name: bI Accepted By: ccepted By: Date: Date: