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Home My WebLink AboutA005 - Proceedings from Bond Counsel dated August 23, 2016 Ames419370-56/2016ASale GO/Call SALE OF 2016A GENERAL OBLIGATION BONDS 419370-56 Ames, Iowa August 23, 2016 The City Council of the City of Ames, Iowa, met on August 23, 2016, at 6:00 o'clock p.m., at the City Hall Council Chambers. The meeting was called to order by the Mayor, and the roll was called showing the following Council Members present and absent: Present: Beattv-Hansen, Betcher. Corrieri. Gartin,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 2016A, 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 Gartin ntroduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Betcher. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted: Ayes: Beattv-Hansen, Betcher. Corrieri Gartin Nelson Orazem. Nays: None. 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 $12,705,000* General Obligation Corporate Purpose and Refunding Bonds, Series 2016A AWARD: ROBERT W. BAIRD & CO.,INC. RATING: Moody's Investors Service,Inc. `Aal' SALE DATE: August 23, 2016 COUPON NET INTEREST COST PURCHASE NAME OF BIDDER RATE YEAR & TRUE INTEREST RATE PRICE ROBERT W.BAIRD & CO.,INC. 2.000% 2017 $1,080,142.83* $13,733,314.95* Milwaukee,Wisconsin 5.000% 2018-2020 C.L.KING &ASSOC WMBE 3.000% 2021-2022 1.5268%* New York, New York 2.000% 2023 EDWARD JONES 3.000% 2024-2027 St.Louis,Missouri 2.000% 2028 CRONIN & CO.,INC. Minneapolis, Minnesota FIDELITY CAPITAL MARKETS Chicago,Illinois CREWS &ASSOC.,INC. Little Rock,Arkansas COASTAL SECURITIES,INC. Houston,Texas ROSS,SINCLAIRE &ASSOC.,LLC Cincinnati, Ohio WNJ CAPITAL Philadelphia, Pennsylvania SAMCO CAPITAL MARKETS Houston,Texas DAVENPORT & CO.LLC Richmond, Virginia NORTHLAND SECURITIES,INC. Minneapolis, Minnesota DOUGHERTY & CO.,LLC Minneapolis, Minnesota VINING-SPARKS IBG,LP Chicago,Illinois DUNCAN-WILLIAMS,INC. Richmond, Virginia BERNARDI SECURITIES,INC. Chicago,Illinois OPPENHEIMER & CO. Philadelphia, Pennsylvania (Syndicate list continued on next page.) * Subsequent to the receipt of bids, the City decreased the aggregate par amount of the Bonds to $11,650,000.00. The resulting Purchase Price decreased to $12,599,255.46, the True Interest Rate increased to 1.5392% and the Net Interest Cost decreased to $1,028,567.32. �i P F T 801 Grand Avenue,Suite 3300 e �ildl > .�DU Des Moines,Iowa 50309 NN FinancialInvestnsent Advisors (515)243-2600 www.nfm.com $12,705,000* General Obligation Corporate Purpose and Refunding Bonds, Series 2016A City of Ames, Iowa Tuesday, August 23, 2016 Page 2 COUPON NET INTEREST COST PURCHASE NAME OF BIDDER RATE YEAR &TRUE INTEREST RATE PRICE SUMRIDGE PARTNERS Jersey City, New Jersey R.SEELAUS & CO.,INC. Summit, New Jersey COUNTRY CLUB BANK Prairie Village, Kansas LOOP CAPITAL MARKETS New York, New York WAYNE HUMMER & CO. Chicago, Illinois SIERRA PACIFIC SECURITIES Las Vegas,Nevada FIRST EMPIRE SECURITIES Hauppauge, New Jersey WEDBUSH SECURITIES,INC. Phoenix, Arizona IFS SECURITIES Atlanta, Georgia RAFFERTY CAPITAL MARKETS Garden City, New York MIDLAND SECURITIES Dallas,Texas FMS BONDS,INC. Miami,Florida FIRST KENTUCKY SECURITIES CORP. Louisville, Kentucky ISAAK BOND INVESTMENTS,INC. Denver, Colorado HUTCHINSON,SHOCKEY,ERLEY & CO. 3.000% 2017 $1,075,433.13 $13,195,214.51 Chicago,Illinois 2.000% 2018 1.500% 2019 1.5475% 1.250% 2020 1.500% 2021-2022 4.000% 2023-2024 2.000% 2025-2026 3.000% 2027 2.000% 2028 PIPER JAFFRAY 5.000%r. 2017-2020 $1,106,774.42 $13,891,487.80 Minneapolis, Minnesota 4.000% 2021-2024 3.000% 2025-2026 1.5582% 2.000% 2027-2028 $12,705,000* General Obligation Corporate Purpose and Refunding Bonds, Series 2016A City of Ames, Iowa Tuesday,August 23, 2016 Page 3 COUPON NET INTEREST COST PURCHASE NAME OF BIDDER RATE YEAR & TRUE INTEREST RATE PRICE FIFTH THIRD SECURITIES,INC. 5.000% 2017-2024 $1,120,349.89 $14,073,866.15 Cincinnati, Ohio 4.000% 2025 2.000% 2026-2027 1.5637% 2.125% 2028 J.P.MORGAN SECURITIES LLC 4.000% 2017 $1,155,825.76 $14,175,280.35 New York, New York 5.000% 2018-2024 DREXEL HAMILTON FINANCIAL 4.000% 2025-2026 1.5999% Philadelphia, Pennsylvania 2.000%; 2027-2028 ACADEMY SECURITIES New York,New York INTERCOASTAL CAPITAL Summit, New Jersey WILLEY BROS,INC. New York, New York SIEBERT BRANFORD SHANK & CO. New York, New York RAYMOND JAMES & ASSOC.,INC. 4.000% 2017 $1,137,258.57 $13,735,588.65 St. Petersburg,Florida 5.000% 2018-2021 MORGAN STANLEY & CO.,INC. 4.000% 2022-2024 1.6188%n New York, New York 2.000% 2025-2028 JEFFRIES & CO.,INC. New York, New York FTN FINANCIAL CAPITAL MARKETS Memphis,Tennessee Ames419370-56/2016ASale GO/Call RESOLUTION NO. 16-497 Awarding Sale of General Obligation Corporate Purpose and Refunding Bonds, Series 2016A and authorizing prepayment of outstanding bonds 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 carrying out flood mitigation and remediation, and of refunding the outstanding balance of the City's General Obligation Corporate Purpose Bonds, Series 2008A (the "Series 2008A Bonds"), and has published notice of the proposed action and has held a hearing thereon; and WHEREAS, in the resolution authorizing the issuance of the Series 2008A Bonds, the City reserved the right to call for redemption prior to maturity any of the Series 2008A Bonds maturing after June 1, 2016 (the "Callable Series 2008A Bonds"); and WHEREAS, it is necessary to authorize the early redemption of the Callable Series 2008A Bonds as of September 17, 2016 and to direct that notice of such early redemption be sent to the holders of those bonds; and WHEREAS, pursuant to advertisement of sale, bids for the purchase of General Obligation Corporate Purpose and Refunding Bonds, Series 2016A (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 municipal advisor has determined that the bid of Robert W. Baird & Co., Inc., Milwaukee, WI (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$11,650,000, 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 $11,650,000 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. DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA Anies4 1 93 70-5 6/20 1 6ASale GO/Call 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. Section 4. The City Treasurer, as Registrar and Paying Agent for the Callable Series 2008A Bonds, is hereby authorized to take all action necessary to call the outstanding balance of the Callable Series 2008A Bonds for redemption as of September 27, 2016 (the "Redemption Date") and is further authorized and directed to give notice of such redemption by sending notice to each of the registered owners of the Callable Series 2008A Bonds to be redeemed at the addresses shown on the City's registration records, not less than 30 days prior to the Redemption Date. Section 5. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved August 23, 2016. Mayor Attest: City Clerk Upon motion and vote, the meeting was adjouried. Mayor Attest: City Clerk DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames419370-56/2016ASale GO/Call 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 2016A, 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 23rd day of August, 2016. City Clerk (Attach here a copy of the bid of the successful bidder.) -4- DORSEY S WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA PARITY Reoffering Page l of l Result I Robert W. Baird & Co., Inc.'s Reoffering Scale Ames $12,705,000 General Obligation Corporate Purpose and Refunding Bonds, Series 2016A Maturity Date Amount$ Coupon % Yield % Dollar Price Call Date 06/01/2017 1,500M 2.0000 0.4900 101.020 06/01/2018 1,555M 5.0000 0.6500 107.246 06/01/2019 1,590M 5.0000 0.7200 111.329 06/01/2020 1,605M 5.0000 0.8300 115.072 06/01/2021 755M 3.0000 0.9500 109.356 06/01/2022 775M 3.0000 1.1200 110.313 06/01/2023 780M 2.0000 1.2400 104.855 06/01/2024 795M 3.0000 1.3600 111.916 06/01/2025 815M 3.0000 1.4200 111.453 06/01/2024 06/01/2026 825M 3.0000 1.5000 110.838 06/01/2024 06/01/2027 845M j 3.0000 1.6000 110.075 06/01/2024 06/01/2028 1 865M 1 2.0000 12.00001 100.000 Accrued Interest: $0.00 Gross Production: $13,806,065.95 :3 1981-2002 i-Deal L.LC. All rights reserved, Trademarks https://www.iiewissuehoine.i-deal.com/Parity/asp/main.asp?frame=content&page=parityR... 8/23/2016 PARITY Bid Form Page 1 of Upcoming Calendar Overview j Result Excel t Robert W. Baird & Co., Inc. - Milwaukee , WI's Bid Ames $12,705,000 General Obligation Corporate Purpose and Refunding Bonds, Series 2016A For the aggregate principal amount of$12,705,000.00, we will pay you $13,733,314.95, plus accrued interest from the date of issue to the date of deliver . The Bonds are to bear interest at the following rate(s): Maturity Date Amount$ Coupon % Yield % Dollar Price 06/01/2017 1,500M 2.0000 0.4900 101.020 06/01/2018 1,555M 5.0000 0.6500 107.246 06/01/2019 1,590M 5.0000 0.7200 111.329 06/01/2020 1,605M 5.0000 0.8300 115.072 06/01/2021 755M 3.0000 0.9500 109.356 06/01/2022 775M 3.0000 1.1200 110.313 06/01/2023 780M 2.0000 1.2400 104.855 06/01/2024 795M 3.0000 1.3600 111.916 06/01/2025 815M 3.0000 1.4200 111.453 06/01/2026 825M 3.0000 1.5000 110.838 06/01/2027 845M 3.0000 1.6000 110.075 06/01/2028 865M 2.0000 2.0000 100.000 Total Interest Cost: $2,108,457.78 Premium: $1,028,314.95 Net Interest Cost: $1,080,142.83 TIC: 1.526812 Time Last Bid Received On:08/23/2016 10:55:41 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: Robert W. Baird & Co., Inc., Milwaukee , WI Contact: Peter Anderson Title: Tel eph one:414-765-7331 Fax: Issuer Name: City of Ames Company Name: Accepted By: Accepted By: https://WWW.neWissuehome.i-deal.com/Parity/asp/main.asp?frame=content&page=parityBi... 8/23/2016