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HomeMy WebLinkAboutA076 - Proceedings of January 24, 2012 Ames4419370-42/2"°%: P&D Water Hrg/Iss (Hearing/Issuance— SRF Water Revenue) 419370-42 Ames, Iowa January 24, 2012 A meeting of the City Council of Ames, Iowa, was held on January 24, 2012, at 7:00 p.m. at the Council Chambers, Ames, Iowa. The meeting was called to order by the Mayor, and the roll was called showing the following Council Members present and absent: Present: Davis, Goodman, Larson, Orazem, Szopinski Absent: Wacha This being the time and place specified for holding a public hearing and taking action on the proposal to enter into a Water Revenue Loan and Disbursement Agreement, the City Clerk announced that no written objections had been placed on file. Whereupon, the Mayor called for any written or oral objections, and there being none, the Mayor declared the public hearing closed. After due consideration and discussion, Council Member Davis introduced the following resolution and moved its adoption, seconded by Council Member Goodman. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted: Ayes: Davis, Goodman, Larson, Orazem, Szopinski Nays: None Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out. DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/,419370-42/2nd% P&D Water Hrg/Iss RESOLUTION NO. 12-030 Resolution taking additional action with respect to a Water Revenue Loan and Disbursement Agreement and authorizing, approving and securing the payment of a Water Revenue Loan and Disbursement Agreement Anticipation Project Note in the principal amount of $11,425,000 (IFA Interim Loan and Disbursement Agreement) WHEREAS, the City of Ames (the "City"), in the County of Story, State of Iowa, did heretofore establish a Municipal Waterworks System(the "Utility") in and for the City which has continuously supplied water and water service in and to the City and its inhabitants since its establishment; and WHEREAS, the management and control of the Utility are vested in the City Council, and no board of trustees exists for this purpose; and WHEREAS, the City has heretofore proposed to borrow money and enter into a Water Revenue Loan and Disbursement Agreement (the "Loan and Disbursement Agreement") with the Iowa Finance Authority (the "Lender") and to issue in accordance therewith Water Revenue Bonds (the "Bonds") in a principal amount not to exceed $11,425,000 to provide funds to pay the costs, to that extent, of planning, designing, and constructing improvements and extensions to the Utility (the "Project"), and has published notice of the proposed action and has held a hearing thereon on January 24, 2012; and WHEREAS, it is necessary at this time to authorize and approve the issuance of a Water Revenue Loan and Disbursement Agreement Anticipation Project Note in the principal amount of$11,425,000 (IFA Interim Loan and Disbursement Agreement) (the "Project Note") pursuant to the provisions of Section 76.13 of the Code of Iowa in anticipation of the receipt of and payable from the proceeds of the Loan and Disbursement Agreement (the "Loan Proceeds") in order to pay authorized costs in connection with planning and designing the Project; NOW, THEREFORE, Be It Resolved by the City Council of the City of Ames, Iowa, as follows: Section 1. The City Council hereby covenants for the benefit of the Lender and all who may at any time be the holder of the Project Note to enter into the Loan and Disbursement Agreement and to issue and deliver the Bonds prior to the Maturity Date, as defined in the Project Note, and declares that this resolution constitutes the "additional action" required by Section 384.24A of the Code of Iowa. The Bonds are hereby ordered to be issued at such time as the City enters into the Loan and Disbursement Agreement. Section 2. The Project Note in the principal amount of $11,425,000 is hereby authorized to be issued to the Lender. The Project Note shall be dated as of the date of closing, shall mature on the Maturity Date as defined in the Project Note, and shall bear interest at the rate of 0%per annum. -2- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ame,q/419370-42/2nd%z P&D Water Hrg/Iss The Project Note shall be executed on behalf of the City with the official manual or facsimile signature of the Mayor and attested with the official manual or facsimile signature of the City Clerk and shall be a fully registered instrument without interest coupons. In case any officer whose signature or the facsimile of whose signature appears on the Project Note shall cease to be such officer before the delivery of the Project Note, such signature or such facsimile signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. The City Clerk is hereby designated as the Registrar and Paying Agent for the Project Note and may be hereinafter referred to as the "Registrar" or the "Paying Agent". The City reserves the right to prepay principal of the Project Note in whole or in part on any date prior to the Maturity Date, as defined in the Project Note, at a prepayment price equal to the principal amount thereof prepaid. The Project Note shall be fully registered as to both principal and interest in the name of the owner in the records of the City kept for such purpose, after which no transfer shall be valid unless made on said records by the City Clerk, and then only upon a written instrument of transfer satisfactory to the City, duly executed by the registered owner or the duly authorized attorney for such registered owner. The City shall maintain as confidential the record of identity of owners of the Project Note, as provided by Section 22.7 of the Code of Iowa. Section 3. The Project Note shall be in substantially the following form: -3- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA