HomeMy WebLinkAboutA021 - Letter to Dorsey & Whitney dated August 27, 2015 CITY OF
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Ames,"
Smart Choice
August 27, 2015
Dorsey & Whitney LLP
801 Grand, Suite 4100
Des Moines, Iowa 50309
Attention Robert E. Josten
RE: General Obligation Corporate Purpose and Refunding Loan Agreement/Hearing on
Increased Principal Amount
Your File No. 419370-55
Dear Mr. Josten:
Enclosed please find the fully executed proceedings from the City Council meeting held August 25,
2015, as follows:
1. Minutes showing the bids received, followed by Resolution No. 15-533 awarding the
sale of the Bonds.
2. Signed Certificate attesting the transcript.
If you have any questions, please call. Thank you for your assistance.
Sincerely,
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Diane R. Voss, City Clerk
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Enclosures
Ames419370-55/2015 Sale GO
SALE OF 2015 GENERAL OBLIGATION
BONDS
419370-55
Ames, Iowa
August 25, 2015
The City Council of the City of Ames, Iowa, met on August 25, 2015, 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: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem.
Absent: None.
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 and Refunding Bonds, Series
2015A, 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)
Council Member Orazem introduced the resolution next hereinafter set out and moved its
adoption, seconded by Council Member Nelson. The Mayor put the question upon the adoption
of said resolution, and the roll being called, the following Council Members voted:
Ayes: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem.
Nays: None.
Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out.
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DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA
Amps419370-55/2015 Sale GO
RESOLUTION NO. 15-533
Awarding Sale of General Obligation Corporate Purpose and Refunding Bonds, Series
2015A
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"), pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose
of paying the cost, to that extent, of constructing street, water main, sanitary and storm sewer,
bridge, and related improvements; of constructing a new municipal airport terminal building, of
flood mitigation and remediation, and of refunding the outstanding balances of the City's
General Obligation Corporate Purpose Bonds, Series 2006A (the "Series 2006A Bonds") and
General Obligation Corporate Purpose Bonds, Series 2007A (the "Series 2007A Bonds)", and
has published notice of the proposed action and has held a hearing thereon; and
WHEREAS, pursuant to advertisement of sale, bids for the purchase of General
Obligation Corporate Purpose and Refunding Bonds, Series 2015A (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 FTN Financial Capital Markets, New York, New York (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$18,445,000, 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$18,445,000 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.
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DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Anies419370-55/2015 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 25, 2015.
Mayor
Attest:
'
City Clerk
Upon motion and vote,the meeting was adjourned.
Mayor
Attest:
City Clerk
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames419370-55/2015 Sale GO
a '
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
and Refunding Bonds, Series 2015A, 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 25 day of August, 2015.
City Clerk
(Attach here a copy of the bid of the successful bidder.)
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DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
TABULATION OF BIDS
City of Ames, Iowa
$20,085,000* General Obligation Corporate Purpose and Refunding Bonds,Series 2015A
AWARD:
FTN FINANCIAL CAPITAL MARKETS
RATING: Moody's Investors Service,Inc. `Aal' SALE DATE: August 25,2015
COUPON NET INTEREST COST PURCHASE
NAME OF BIDDER RATE YEAR &TRUE INTEREST RATE PRICE
FTN FINANCIAL CAPITAL MARKETS 5.000% 2016-2020 $2,522,298.13* $21,678,720.00*
New York,New York 2.000% 2021
MORGAN STANLEY& CO.,INC. 5.000% 2022-2023 2.1454%*
New York,New York 2.500% 2024
RAYMOND JAMES& ASSOCIATES,INC. 3.000% 2025-2027
Memphis,Tennessee 3.000% 2029 ')
JEFFERIES& CO.,INC. 3.000% 2031
New York,New York 3.125% 2033
CITY SECURITIES 3.250% 2035 ')
Indianapolis,Indiana
SAMUEL A.RAMIREZ&CO., INC.
New York,New York
* Subsequent to the receipt of bids, the City decreased the aggregate par amount of the Bonds to $18,445,000. The resulting
Purchase Price decreased to $19,894,168.15, the True Interest Rate increased to 2.1608% and the Net Interest Cost decreased to
$2,365,301.28.
1) Represents a term bond with mandatory redemption sinking payments.
Ali-
C PFN
801 Grand Avenue Suite 3300
Des Moines,Iowa -260
The PFM Group 0
Financial&Investment Advisors (515)243-260
www.pfm.com
$20,085,000*General Obligation Corporate Purpose and Refunding Bonds, Series 2015A
City of Ames, Iowa
Tuesday, August 25,2015
Page 3
COUPON NET INTEREST COST PURCHASE
NAME OF BIDDER RATE YEAR &TRUE INTEREST RATE PRICE
ROBERT W. BAIRD&CO.,INC. 5.000% 2016-2019 $2,511,679.47 $21,413,893.45
Milwaukee,Wisconsin 3.000% 2020
C.L. KING& ASSOCIATES 2.000% 2021 2.1530%
New York,New York 4.000% 2022-2023
EDWARD D.JONES& CO. 2.500% 2024
St. Louis, Missouri 3.000% 2025-2030
CRONIN& CO.,INC. 3.125% 2031-2032
Minneapolis,Minnesota 3.250% 2033-2034
CREWS& ASSOCIATES,INC. 3.375% 2035
Little Rock,Arkansas
COASTAL SECURITIES,INC.
Houston,Texas
ROSS,SINCLAIRE&ASSOCIATES, LLC
Cincinnati,Ohio
WNJ CAPITAL
Philadelphia,Pennsylvania
FIDELITY CAPITAL MARKETS
Chicago, Illinois
DAVENPORT& CO. LLC
Richmond,Virginia
NORTHLAND SECURITIES,INC.
Minneapolis,Minnesota
DOUGHERTY& COMPANY,LLC
Minneapolis,Minnesota
VINING-SPARKS IBG,LTD PARTNERSHIP
Chicago, Illinois
DUNCAN-WILLIAMS,INC.
Richmond,Virginia
BERNARDI SECURITIES,INC.
Chicago,Illinois
OPPENHEIMER&CO.,INC.
Philadelphia,Pennsylvania
WAYNE HUMMER INVESTMENTS
Chicago, Illinois
D.A.DAVIDSON& CO
Denver,Colorado
SIERRA PACIFIC SECURITIES
Las Vegas,Nevada
ALAMO CAPITAL
San Antonio, Texas
WEDBUSH SECURITIES, INC.
Phoenix,Arizona
SUMRIDGE PARTNERS,LLC
Jersey City,New Jersey
COUNTRY CLUB BANK
Prairie Village,Kansas
LOOP CAPITAL MARKETS,LLC
New York,New York
PFNI
The PFM Group
SAVINGS
City of Ames,Iowa
General Obligation Corporate Purpose&Refunding Bonds,Series 2015A
Post Sale-FINAL
Present Value
Prior Refunding Annual to 09/22/2015
Date Debt Service Debt Service Savings Savings @ 2.0642944%
09/25/2015 (67,180.83) (67,180.83) (67,169.34)
12/01/2015 106,075.00 106,075.00 105,658.28
06/01/2016 1,541,075.00 1,498,104.17 42,970.83 81,865.00 42,364.75
12/01/2016 78,525.00 95,750.00 (17.225.00) (16,808.56)
06/01/2017 1,573,525.00 1,475,750.00 97,775.00 80,550.00 94,436.43
12/01/2017 49,825.00 61,250.00 (11,425.00) (10,922.16)
06/01/2018 1,614,825.00 1,521,250.00 93,575.00 82,150.00 88,542.63
12/01/2018 19,781.25 24,750.00 (4,968.75) (4,653.50)
06/01/2019 1,074,781.25 1,014,750.00 60,031.25 55,062.50 55,648.16
5,991,231.67 5,691,604.17 299,627.50 299,627.50 287,096.69
Savings Summary
PV of savings from cash flow 287,096.69
Plus:Refunding funds on hand 292.56
Net PV Savings 287,389.25
Aug 25,2015 2:21 pm Prepared by Public Financial Management,Inc. Page 8