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HomeMy WebLinkAboutA024 - Council Action Form dated August 26, 2014 ITEM # 29 DATE: 08-26-14 COUNCIL ACTION FORM SUBJECT: SALE AND ISSUANCE OF ESSENTIAL CORPORATE PURPOSE GENERAL OBLIGATION BONDS SERIES 2014 ISSUE IN AN AMOUNT NOT TO EXCEED $9,985,000 BACKGROUND: The 2014/15 budget includes General Obligation (G.O.) Bond funded capital improvement projects in the amount of $9,840,000. The City Council held a public hearing on issuance of these bonds on March 4, 2014 as part of the budget process. Council action is now required to authorize the sale. Projects to be funded by this bond issue include the following: Street Improvements $ 6,884,750 Bridge Rehabilitation 180,000 Storm Sewer 300,000 Grant Avenue Paving (abated by special assessments) 2,175,250 Resource Recovery Improvements (abated by RR revenue) 300,000 Subtotal $ 9,840,000 Issuance Cost/Allowance for Sale at Premium 145,000 Total Debt Issue $ 9,985,000 On the morning of August 26, 2014, the City will accept bids for the bonds per the terms of our offering statement. The bids will be evaluated by our financial advisor, Public Financial Management, by the City's Bond Counsel, and by City staff to recommend award to the bidder with the lowest cost. A report of bids will be provided to Council at the August 26 meeting. The City Council will then be asked to adopt a resolution accepting bids and authorizing that the sale of bonds be awarded to the chosen bidder. ALTERNATIVES: 1. The City Council can adopt a resolution accepting bids and authorizing the sale and issuance of Essential Corporate Purpose General Obligation Bonds in an amount not to exceed $9,985,000. 2. The Council can reject the bond sale resolution and delay the capital projects. MANAGER'S RECOMMENDED ACTION: Issuance of these bonds is necessary in order to accomplish the City's approved capital improvements during this fiscal year and savings can be realized by bond refunding. Therefore, it is the recommendation of the City Manager that the City Council accept Alternative No. 1, thereby adopting a resolution accepting bids and authorizing the sale and issuance of Essential Corporate Purpose General Obligation Bonds in an amount not to exceed $9,985,000. 0o O 0 o 0 0 0 0 0 0 0 0 0 Cl 0 0 0 0 0 0 0 0 0 00 o c o 0 0 00 o 0 0 0 0 0 0 0 0 0 0 0 0 Cl 0 0 0 o O 0 0 0 0 0 o O p o 0 _ 0 0 0 - n o 0 0 0 vi vi N O z ^ M r r N N 0 0 r �n Vl O O r r 0 0 �n v1 r r 00 O r r vri N •> Vt r r �D lD V V <7 N N V V V O\ O\ •-^ •-• 00 00 Cl rn InClVl W M V1 Vl N r CO n V1 Vl O Vl O �n V �n V O\ 0 7 7 ^ V O 7 t0 7 r V' 10 O Q` ,-• O, -. 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The Bonds are to bear interest at the followin rates : Maturity Date Amount$ Coupon % Yield % Dollar Price 06/01/2015 800M 3.0000 0.2000 101.872 06/01/2016 810M 3.0000 0.4000 104.321 06/01/2017 815M 3.0000 0.6500 106.208 06/01/2018 830M 3.0000 0.8500 107.750 06/01/2019 845M 3.0000 1.1000 108,623 06/01/2020 855M 3.0000 1.3500 108.975 06/01/2021 870M 2.0000 1.6500 102.200 06/01/2022 895M 3.0000 1.7500 108.933 06/01/2023 925M 2.0000 1.9000 100.709 06/01/2024 950M 2.5000 2.0000 103.537 06/01/2025 685M 2.5000 .2.20001 102.105 06/01/2026 705M 2.5000 12.35001 101.045 Total Interest Cost: $1,577,458.06 Premium: $395,653.50 Net Interest Cost: $1,181,804.56 TIC: 1.879452 Time Last Bid Received On:08/26/2014 9:44:58 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: Wells Fargo Bank, National Association, Charlotte , NC Contact: Amanda Pogue Title: Analyst Telephone:704-410-4087 Fax: 704-383-0065 Issuer Name: City of Ames Company Name: Accepted By: Accepted By: Date: Date: Upcoming Calendar Overview Result ' Excel Piper Jaffray - Kansas City , MO's Bid Ames $9,985,000 General Obligation Corporate Purpose Bonds, Series 2014 For the aggregate principal amount of$9,985,000.00,we will pay you $10,484,284.40, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the followin rates : Maturity Date Amount$Coupon %Yield % Dollar Price 06/01/2015 800M 2.0000 0.2000 101.203 06/01/2016 810M 2.0000 0.4000 102.659 06/01/2017 815M 2.0000 0.6000 103.701 06/01/2018 830M 3.0000 0.8000 107.939 06/01/2019 845M 3.0000 1.1000 108.623 06/01/2020 855M 3.0000 1.3500 108.975 06/01/2021 870M 3.0000 1.6000 108.821 06/01/2022 895M 3.0000 1.8000 108.558 06/01/2023 925M 2.5000 1.9500 103.898 06/01/2024 950M 2.5000 2.0500 103.177 06/01/2025 1 685M 1 2.7500 2.2000 103.860 06/01/2026 1 705M 1 3.0000 12.35001 104.535 Total Interest Cost: $1,694,350.59 Premium: $499,284.40 Net Interest Cost: $1,195,066.19 TIC: 1.881337 Time Last Bid Received On:08/26/2014 9:57:10 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: Piper Jaffray, Kansas City, MO Contact: Joyce Chaney Title: Managing Director Telephone:913-345-3360 Fax: Issuer Name: City of Ames Company Name: Accepted By: Accepted By: Date: Date: Upcoming Calendar Overview I Result Excel Robert W. Baird & Co., Inc. - Milwaukee , WI s Bid ,.,11.�"�I . Ames $9,985,000 General Obligation Corporate Purpose Bonds, Series 2014 For the aggregate principal amount of$9,985,000.00,we will pay you $10,221,518.30, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the followin rates : Maturity Date Amount$ Coupon %Yield % Dollar Price 06/01/2015 800M 2.0000 0.2500 101.169 06/01/2016 810M 2.0000 0.4000 102.659 06/01/2017 815M 2.0000 0.6000 103.701 06/01/2018 830M 2.0000 0.8500 104.145 06/01/2019 845M 2.0000 1.1500 103.852 06/01/2020 855M 2.0000 1.3000 103.813 06/01/2021 870M 2.0000 1.5000 103.161 06/01/2022 895M 2.0000 1.7500 101.785 06/01/2023 925M 2.0000 1.9000 100.709 06/01/2024 950M 2.5000 2.0500 103.177 06/01/2025 685M 3.0000 2.2000 105.615 06/01/2026 705M 3.0000 2.3500 i 104.535 Total Interest Cost: $1,427,473.19 Premium: $236,518.30 Net Interest Cost: $1,190,954.89 TIC: 1.901797 Time Last Bid Received On:08/26/2014 9:16:07 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: Peter Anderson Title: Telephone:414-765-7331 Fax: Issuer Name: City of Ames Company Name: Accepted By: Accepted By: Date: Date: Upcoming Calendar Overview Result Excel BMO Capital Markets - Chicago , IL's Bid Ames $9,985,000 General Obligation Corporate Purpose Bonds, Series 2014 For the aggregate principal amount of$9,985,000.00,we will pay you $10,297,929.45, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the followin rates : Maturity Date Amount$Coupon % Yield % Dollar Price 06/01/2015 800M 2.0000 0.2500 101.169 06/01/2016 810M 2.0000 0.4000 102.659 06/01/2017 815M 2.0000 0.6000 103.701 06/01/2018 830M 2.0000 0.8500 104.145 06/01/2019 845M 2.0000 1.1000 104.084 06/01/2020 855M 2.0000 1.3000 103.813 06/01/2021 870M 2.0000 1.5000 163.161 06/01/2022 895M 2.0000 1.7000 102.147 06/01/2023 925M 2.5000 1.9000 104.261 06/01/2024 950M 3.0000 2.0500 106.708 06/01/2025 685M 3.0000 12.20001 105.615 06/01/2026 705M 3.0000 12.45001 103.822 Total Interest Cost: $1,513,499.24 Premium: $312,929.45 Net Interest Cost: $1,200,569.79 TIC: 1.905501 Time Last Bid Received On:08/26/2014 9:53:33 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: BMO Capital Markets, Chicago , IL Contact: Tracy McBride Title: Vice President Telephone:312-845-5074 Fax: Issuer Name: City of Ames Company Name: Accepted By: Accepted By: Date: Date: Upcoming Calendar Overview Result Excel D.A. Davidson & Co. - Denver , CO's Bid Ames $9,985,000 General Obligation Corporate Purpose Bonds, Series 2014 For the aggregate principal amount of$9,985,000.00,we will pay you $10,252,767.25, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the followin rates : Maturity Date Amount$Coupon % Yield % Dollar Price 06/01/2015 800M 2.0000 0.2000 101.203 06/01/2016 810M 2.0000 0.4000 102.659 06/01/2017 815M 2.0000 0.6500 103.566 06/01/2018 830M 2.0000 0.8500 104.145 06/01/2019 845M 2.0000 1.1500 103.852 06/01/2020 855M 2.0000 1.4000 103.258 06/01/2021 870M 2.0000 1.6000 102.519 06/01/2022 895M 2.0000 1.8000 101.425 06/01/2023 925M 2.5000 1.9000 104.261 06/01/2024 950M 2.5000 2.0000 103.537 06/01/2025 685M 3.0000 2.2000 105.615 06/01/2026 1 705M 3.0000 12.50001 103.467 Total Interest Cost: $1,467,569.37 Premium: $267,767.25 Net Interest Cost: $1,199,802.12 TIC: 1.911363 Time Last Bid Received On:08/26/2014 9:57:41 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: D.A. Davidson &Co., Denver, CO Contact: justin sheldon Title: Telephone:303-764-6050 Fax: Issuer Name: City of Ames Company Name: Accepted By: Accepted By: Date: Date: Upcoming Calendar Overview Result Excel Raymond James & Associates, Inc. - St. Petersburg , FL s Bid :246111.Ali1}��I - Ames $9,985,000 General Obligation Corporate Purpose Bonds, Series 2014 For the aggregate principal amount of$9,985,000.00,we will pay you $10,134,909.45, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the followin rates : Maturity Date Amount$Coupon %Yield % Dollar Price 06/01/2015 800M 2.0000 0.3500 101.102 06/01/2016 810M 2.0000 0.4500 102.574 06/01/2017 815M 2.0000 0.6500 103.566 06/01/2018 830M 2.0000 0.8500 104.145 06/01/2019 845M 2.0000 1.2000 103.621 06/01/2020 855M 2.0000 1.4000 103.258 06/01/2021 870M 2.0000 1.6500 102.200 06/01/2022 895M 2.0000 1.8000 101.425 06/01/2023 925M 2.2500 1.9500 102.126 06/01/2024 950M 2.2500 2.0500 101.411 06/01/2025 685M 2.5000 2.2000 102.105 06/01/2026 705M 2.5000 2.3500 101.045 Total Interest Cost: $1,346,878.72 Premium: $149,909.45 Net Interest Cost: $1,196,969.27 TIC: 1.926991 Time Last Bid Received On:08/26/2014 9:59:47 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: Raymond James&Associates, Inc., St. Petersburg , FL Contact: Christopher Warburton Title: Telephone:727-567-1293 Fax: Issuer Name: City of Ames Company Name: Accepted By: Accepted By: Date: Date: Upcoming Calendar Overview Result , Excel FTN Financial Capital Markets - Memphis , TN's Bid `�� Ames $9,985,000 General Obligation Corporate Purpose Bonds, Series 2014 For the aggregate principal amount of$9,985,000.00,we will pay you $10,255,538.45, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the followin rates : Maturity Date Amount$ Coupon % Yield % Dollar Price 06/01/2015 800M 2.0000 0.2500 101.169 06/01/2016 810M 2.0000 0.4000 102.659 06/01/2017 815M 2.0000 0.6500 103.566 06/01/2018 830M 2.0000 0.9000 103.961 06/01/2019 845M 2.0000 1.1000 104.084 06/01/2020 855M 2.0000 1.4500 102.982 06/01/2021 870M 2.5000 1.6500 105.346 06/01/2022 895M 2.5000 1.9000 104.261 06/01/2023 925M 2.5000 2.1000 102.818 06/01/2024 950M 2.7500 2.2000 103.860 06/01/2025 685M 2.7500 2.3500 102.790 06/01/2026 705M 2.7500 2.50001 101.733 Total Interest Cost: $1,515,028.33 Premium: $270,538.45 Net Interest Cost: $1,244,489.88 TIC: 1.984146 Time Last Bid Received On:08/26/2014 9:46:32 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: FTN Financial Capital Markets, Memphis , TN Contact: Mason McWilliams Title: Telephone:901-435-8006 Fax: Issuer Name: City of Ames Company Name: Accepted By: Accepted By: Date: Date: Upcoming Calendar Overview Result Excel SunTrust Robinson Humphrey - Nashville , TN's Bid a.r�o Ames $9,985,000 General Obligation Corporate Purpose Bonds, Series 2014 For the aggregate principal amount of$9,985,000.00,we will pay you $10,539,771.00, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the followin rates : Maturity Date Amount$ Coupon % Yield % Dollar Price 06/01/2015 800M 3.0000 0.3000 101.804 06/01/2016 810M 3.0000 0.4500 104.236 06/01/2017 815M 3.0000 0.6500 106.208 06/01/2018 830M 3.0000 0.9000 107.562 06/01/2019 845M 3.0000 1.2000 108.149 06/01/2020 855M 3.0000 1.4500 108.405 06/01/2021 870M 3.0000 1.6500 108.491 06/01/2022 895M 3.0000 1.8500 108.185 06/01/2023 925M 3.0000 2.0000 107.075 06/01/2024 950M 1 3.0000 2.2000 105.615 06/01/2025 685M 3.0000 2.3500 104.535 06/01/2026 705M 1 3.0000 12.50001 103.467 Total Interest Cost: $1,839,282.08 Premium: $554,771.00 Net Interest Cost: $1,284,511.08 TIC: 2.015766 Time Last Bid Received On:08/26/2014 9:41:57 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: SunTrust Robinson Humphrey, Nashville , TN Contact: Wayne Mayo Title: Director Telephone:615-748-4436 Fax: 615-748-5952 Issuer Name: City of Ames Company Name: Accepted By: Accepted By: Date: Date: