HomeMy WebLinkAbout~Master - Sale and issuance of G.O. Bonds for acquisition and development of Ames Quarry Ames/4I9370-26/10%GBS
RESOLUTION NO. 02-169
Fixing a date of meeting at which it is proposed to take action for the sale and
issuance of$3,475,000 General Obligation Corporate Purpose Bonds, Series
2002A, and providing for the advertisement of such sale
WHEREAS, the City of Ames, Iowa (the "City"), has heretofore proposed to contract
indebtedness and issue $3,475,000 General Obligation Bonds pursuant to the provisions of
Division III of Chapter 384 of the Code of Iowa for the purpose of the acquisition, construction,
improvement and equipping of parks and recreation grounds and developing a watershed
protection area, necessary and useful for the health and welfare of its citizens, including the
acquisition of real estate therefor, on and adjacent to the area known as "Halletts Quarry", and
has called a special City election to vote on the question of issuing such bonds, at which election
the proposition was adopted by a vote in favor equal to at least 60%of the total votes cast for and
against the proposition; and
WHEREAS, the City desires to offer the Bonds for public sale and to provide for the
advertisement of such sale;
NOW, THEREFORE, It Is Resolved by the Council of the City of Ames, Iowa, as
follows:
Section 1. This Council shall meet on the 9th day of April, 2002, at the
Council Chambers , in the City, at seven o'clock_.m., at which time and place
proceedings will be instituted and action taken for the sale and issuance of the Bonds.
Section 2. Sealed bids for the purchase of the Bonds shall be received and canvassed
on behalf of the City at 10:00 o'clock a.m. on the 9th day of April, 2002, at the Council
Chambers, City Hall, in the City, and the City Council shall meet on the same date at
seven o'clock p.m., at the Council Chambers, City Hall, in the City, for the purpose of
considering such bids received and considering and passing a resolution providing for the sale
and issuance of the Bonds.
Section 3. The City Clerk is authorized and directed to publish notice of said sale, as
provided by Chapter 75 of the Code of Iowa, in substantially the following form:
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DORSEY& WHITNEY LLP, ATTORNEYS,DES MOINFS, IOWA
A ms/419370-26l1`Ya GBS
NOTICE OF SALE
City of Ames, Iowa
$3,475,000 General Obligation Corporate Purpose Bonds
Sealed bids will be received on behalf of the City of Ames, Story County, Iowa until
10:00 o'clock a.m, on the 9th day of April, 2002, at the offices of City Clerk, City Hall, 515
Clark Avenue, Ames, Iowa 50010, for the purchase of$3,475,000 General Obligation Corporate
Purpose Bonds, of the City, at which time such bids will be opened and canvassed. Thereafter
such bids will be presented to the City Council for consideration at its meeting to be held at
seven o'clock p.m. on the same date at the Council Chambers, City Hall , Ames,
Iowa, at which time the Bonds will be sold to the best bidder for cash. No open bids will be
accepted.
The Bonds will be issued as fully registered bonds in denominations of $5,000 or any
integral multiple thereof, will be dated May 1, 2002, will bear interest payable semiannually on
each June 1 and December 1 to maturity, commencing December 1, 2002, and will mature on
June 1 in the following years and amounts:
Principal Principal
Year Amount Year Amount
2003 $120,000 2013 $185,000
2004 130,000 2014 190,000
2005 135,000 2015 200,000
2006 140,000 2016 210,000
2007 145,000 2017 220,000
2008 150,000 2018 230,000
2009 155,000 2019 240,000
2010 160,000 2020 255,000
2011 170,000 2021 265,000
2012 175,000
The right is reserved to the City to call and redeem all of the said Bonds maturing in the
years 2012 to 2021, inclusive, in whole or from time to time in part, in one or more units of
$5,000, on June 1, 2011, or on any date thereafter prior to maturity (and within a maturity by
lot), upon terms of par and accrued interest.
Bidders must specify a price of not less than $3,447,200, plus accrued interest. The legal
opinion of Dorsey & Whitney LLP, Attorneys, Des Moines, Iowa, will be furnished by the City.
A good faith deposit of$34,750 is required and may be forfeited to the City in the event
the successful bidder fails or refuses to take and pay for the Bonds.
The City reserves the right to reject any or all bids and to waive irregularities in any bid.
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DORSEY & WHITNEY LLP, ATTORNEYS,DES MOINES, IOWA
Amcs/419370-26/1'h GAS
The Bonds are being issued pursuant to the provisions of Division III of Chapter 384 of
the Code of Iowa and will constitute general obligations of the City, payable from taxes levied
upon all the taxable property in the City without limitation as to rate or amount.
In order to permit bidders for the Bonds and other participating underwriters in the
primary offering of the Bonds to comply with paragraph (b)(5) of Rule 15c2-12 promulgated by
the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the
"Rule"), the City will covenant and agree, for the benefit of the registered holders and beneficial
owners from time to time of the outstanding Bonds, in the resolution awarding the sale and
prescribing the terms of the Bonds, to provide annual reports of specified information and notice
of the occurrence of certain events, if material. The City is the only "obligated person" with
respect to the Bonds within the meaning of the Rule for the purposes of disclosing information
on an ongoing basis. A description of the undertaking is set forth in the Official Statement.
Failure of the City to enter into an undertaking substantially similar to that described in the
Official Statement would relieve the successful bidder of its obligation to purchase the Bonds.
The City has complied in all material respects with any undertaking previously entered into by it
under the Rule.
Bidders should be aware that the official terms of offering to be published in the Official
Statement for the Bonds contain additional bidding terms and information relative to the Bonds.
In the event of a variance between statements in this Notice of Sale (except with respect to the
time and place of the sale of the Bonds and the principal amount offered for sale) and said
official terms of offering, the provisions of the latter shall control.
By order of the City Council of Ames, Iowa.
Diane R. Voss
City Clerk
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DORSEY& WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA
Anw-V419370-26/1'%GBS
Section 5. All resolutions or parts of resolutions in conflict herewith are hereby
repealed to the extent of such conflict.
Passed and approved March 26, 2002.
Mayor
Attest:
City Clerk
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DORSEY& WIiITNEY LLP, ATTORNEYS,DES MOMES, IOWA