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Home My WebLink AboutA014 - Proceedings from Bond Counsel dated July 25, 2017 Ames419370-58/SetHrng2017 GORfdg LA SET DATE FOR HEARING ON ENTERING INTO 2017 GENERAL OBLIGATION REFUNDING LOAN AGREEMENT 419370-58 Ames, Iowa July 25, 2017 The City Council of the City of Ames, Iowa, met on July 25, 2017, at 6:00 o'clock p.m., at the City Hall Council Chamber, in the City. The Mayor presided and the roll was called showing the following members of the City Council present and absent: Present: Beatty-Hansen, Betcher, Corrieri, Gartin, Orazem Absent: Nelson Council Member Betcher introduced the resolution hereinafter next set out, setting a date for hearing on 2017 general obligation refunding loan agreement, and moved its adoption, seconded by Council Member Gartin; and after due consideration thereof by the City Council, the Mayor put the question upon the adoption of the said resolution and the roll being called, the following named Council Members voted: Ayes: Beatty-Hansen, Betcher, Corrieri, Gartin, Orazem Nays: None. Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out. . . . . At the conclusion of the meeting, and upon motion and vote, the City Council adjourned. Mayor Attest: a L,9, City Clerk -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOW ES,IOWA v Ames419370-55/SetHrng2017 GORfdg LA RESOLUTION NO. 17-457 Resolution to fix a date for a public hearing on a loan agreement in a principal amount not to exceed S4,500,000 WHEREAS, pursuant to a resolution adopted October 13, 2009, the City of Ames (the "City"), in Story County, State of Iowa, authorized the issuance of its General Obligation Corporate Purpose Bonds, Series 2009B, in the principal amount of $11,165,000 (the "Series 2009B Bonds"); and WHEREAS, in the resolution authorizing the issuance of the Series 2009B Bonds, the City reserved the right to call for redemption prior to maturity any of the Series 2009B Bonds maturing after June 1, 2017 (the "Callable Series 2009B Bonds"); and WHEREAS, the City proposes to enter into a General Obligation Refunding Loan Agreement (the "Loan Agreement") in a principal amount not to exceed $4,500,000, pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose of refunding the Callable Series 20090B Bonds; and it is necessary to fix a date of meeting of the City Council at which it is proposed to take action to enter into the Loan Agreement and to give notice thereof as required by such law; NOW, THEREFORE, Be It Resolved by the City Council of the City of Ames, Iowa, as follows: Section 1. The City Council shall meet on the 8" day of August, 2017, at the City Hall Council Chamber, Ames, Iowa, at 6:00 o'clock p.m., at which time and place a hearing will be held and proceedings will be instituted and action taken to enter into the Loan Agreement. Section 2. The City Clerk is hereby directed to give notice of the proposed action on the Loan Agreement setting forth the amount and purpose thereof, the time when and place where the said meeting will be held by publication at least once and not less than 4 nor more than 20 days before the date of said meeting, in a legal newspaper which has a general circulation in the Citv. The notice shall be in substantially the following form: DORSEY&WHITNEY LLP,ATTORNEYS.DES MOINES,IOWA Ames419370-58/SetHmg2017 GORfdg LA NOTICE OF PUBLIC HEARING ON LOAN AGREEMENT IN A PRINCIPAL AMOUNT NOT TO EXCEED $4,500,000 (GENERAL OBLIGATION REFUNDING) The City Council of the City of Ames, Iowa, will meet on the 8`h day of August, 2017, at the City Hall Council Chamber, 515 Clark Avenue, Ames, Iowa, at 6:00 o'clock p.m., for the purpose of holding a hearing and taking action to enter into a loan agreement (the "Loan Agreement") in a principal amount not to exceed $4,500,000 for the purpose of refunding the outstanding balance of the City's General Obligation Corporate Purpose Bonds, Series 2009B. The Loan Agreement is proposed to be entered into pursuant to authority contained in Section 3 84.24A of the Code of Iowa and will constitute a general obligation of the City. At that time and place, oral or written objections may be filed or made to the proposal to enter into the Loan Agreement. After receiving objections, the City may determine to enter into the Loan Agreement, in which case, the decision will be final unless appealed to the District Court within fifteen (15) days thereafter. By order of the City Council of the City of Ames, Iowa. Diane Voss City Clerk -3- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames419370-58/SetHrng20I7 GORfdg LA Section I All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved July 25, 2017. Mayor Attest: City Clerk -4- DORSEY&WHITNEY LLP.ATTORNEYS,DES MOINES,IOWA Ames419370-58/SetHrng2017 GORfdg LA STATE OF IOWA COUNTY OF STORY SS: CITY OF AMES I, the undersigned, City Clerk of the City of Ames, do hereby certify that attached hereto is a true and correct copy of the proceedings of the City Council relating to fixing a date for a hearing on the City Council's proposal to take action in connection with a loan agreement, as referred to therein. WITNESS MY HAND this 25th day of July, 2017. City Clerk -5- DORSEY&WHITNEY LLP.ATTORNEYS,DES MOINES,IOWA 0ORSEY" July 19, 2017 Diane R. Voss City Clerk/City Hall 515 Clark Avenue J U L 2 1 2017 PO Box 811 Ames, Iowa 50010-0811 CITY CLERK Re: 2017 General Obligation Refunding Loan Agreement CITY of AVEs. IOWA Our File No. 419370-58 Dear Diane: Based on communications with Duane Pitcher and Susanne Gerlach, I have prepared and enclose proceedings to be used at the City Council meeting on July 25 to set August 8 as the date for a hearing on the proposal to enter into a Loan Agreement for the purpose of refunding the outstanding balance of the City's General Obligation Corporate Purpose Bonds, Series 2009B. The documents enclosed include the following items: 1. Resolution fixing the date, time and place of the meeting at which it is proposed to hold a hearing on the Loan Agreement. The form of notice of hearing is set out in Section 2 of the resolution. 2. Certificate attesting the transcript. 3. Certificate with respect to publication of the notice,to which must be attached the publisher's affidavit of publication with a clipping of the notice as published. The notice must be published at least once not less than 4 nor more than 20 days before the meeting date set for the hearing, in a legal newspaper which has a general circulation in Ames. Please (scan and email or fax a copy of the published notice to our office at(515)283-1060. As soon as possible after the City Council meeting, please return one fully executed copy of all of the completed pages in these proceedings. If you have any questions, please contact me. Ve I truly yours, ob . Josten cc by email: Duane Pitcher \ -r Steve Schainker Mark Lambert Susanne Gerlach DORSEY & WHITNEY LLP • ATTORNEYS AT LAW • WWW.DORSEY.COM •T 515.283.1000 F 515.283.1060 • 801 GRAND • SUITE 4100 • DES MOINES, IOWA 50309-8002 USA CANACIA EUROPE ASIA-PACIFIC ITEM # 9 DATE: 07-25-17 COUNCIL ACTION FORM SUBJECT: PUBLIC HEARING AND NOTICE OF INTENT TO ISSUE $4,500,000 GENERAL OBLIGATION REFUNDING BONDS BACKGROUND: On March 7, 2017, a public hearing was held to authorize the issuance of Essential Corporate Purpose General Obligations bonds in amount not to exceed $8,000,000 to fund projects included in the FY 2017-18 Capital Improvements Plan. Sale of the G.O. Bonds to fund the CIP is planned for August 8, 2017. In addition to the G.O. Bonds to fund capital improvement projects, staff has identified a refunding opportunity for bonds issued in 2009 that will provide savings in future debt service costs. Estimated net present value of savings for the refunding is $136,889 or 3.19%. The Council approved Debt Policy states "the City shall strive to achieve a minimum of three percent net present value savings for a current refunding". The planned refunding meets the policy target. Combining the refunding bonds with the planned bond sale reduces the City's total cost of issuance and improves savings on future debt service. A public hearing for the refunding bonds is necessary to include as part of the upcoming bond sale. ALTERNATIVES: 1. Set August 8, 2017, as the date of public hearing for the sale of General Obligation Refunding Bonds in an amount not to exceed $4,500,000. 2. Reject setting a public hearing for the refunding bonds. MANAGER'S RECOMMENDED ACTION: Savings on future debt service costs can be achieved by refunding General Obligation Bonds issued in 2009. The most economical method of issuing the refunding bonds is to combine with the bond sale planned to fund the FY 2017-18 CIP projects. A public hearing is required to issue the refunding bonds and realize the savings in debt service costs. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, thereby authorizing the issuance of General Obligation Refunding Bonds in an amount not to exceed $4,500,000 and set the date of public hearing for August 8, 2017.