HomeMy WebLinkAbout~Master - Sale of G.O. Refunding Bonds, Series 2011A Ames/419370-45/2"d/,Sale
RESOLUTION NO. 11-163
Awarding Sale of General Obligation Refunding Bonds, Series 2011A
WHEREAS, the City of Ames (the "City"), in Story County, State of Iowa, pursuant to a
resolution of the City Council adopted on April 9, 2002 (the "2002A Bond Resolution"),
previously issued its $3,475,000 General Obligation Corporate Purpose Bonds, Series 2002A,
dated May 1, 2002 (the "2002A Bonds"), a portion of which remain outstanding; and
WHEREAS, pursuant to the 2002A Bond Resolution, the City reserved the right to
prepay the 2002A Bonds maturing in the years 2012 to 2021 (the "Callable 2002A Bonds"),
inclusive, on any date on or after June 1, 2011; and
WHEREAS, the City, pursuant to a resolution of the City Council adopted on September
24, 2002 (the "2002B Bond Resolution"), previously issued its $5,885,000 General Obligation
Corporate Purpose Bonds, Series 2002B, dated October 15,2002 (the "2002B Bonds"), a portion
of which remain outstanding; and
WHEREAS, pursuant to the 2002B Bond Resolution, the City reserved the right to
prepay the 2002B Bonds maturing in the years 2012 to 2014 (the "Callable 2002B Bonds")
inclusive, on any date on or after June 1, 2011; and
WHEREAS, the City, pursuant to a resolution of the City Council adopted on August 26,
2003 (the "2003 Bond Resolution"), previously issued its $6,555,000 General Obligation
Corporate Purpose Bonds, Series 2003, dated September 1, 2003 (the "2003 Bonds"), a portion
of which remain outstanding; and
WHEREAS, pursuant to the 2003 Bond Resolution, the City reserved the right to prepay
the 2003 Bonds maturing in the years 2012 to 2015 (the "Callable 2003 Bonds"), inclusive, on
any date on or after June 1, 2011; and
WHEREAS, the City has heretofore proposed to enter into a General Obligation
Refunding Loan Agreement (the "Loan Agreement") in a principal amount not to exceed
$6,150,000 pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose
of paying the cost, to that extent, of refunding the Callable 2002A Bonds, the Callable 2002B
Bonds and the Callable 2003 Bonds, and has published notice of the proposed action and has
held a hearing thereon on March 22,2011; and
WHEREAS, pursuant to advertisement of sale, bids for the purchase of General
Obligation Refunding Bonds, Series 2011A (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 Hutchinson, Shockey, Erley & CO, Chicago, IL (the "Purchaser"), is
the best, such bid proposing the lowest interest cost to the City; and
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Ames/419370-45/2"'%Sale
WHEREAS, the City's financial advisor has also determined that the principal amount of
the Bonds to be sold is $5,980,000;
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$5,980,000 for the purpose 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 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.
Section 4. All resolutions or parts thereof in conflict herewith are hereby repealed to
the extent of such conflict.
Passed and approved April 12, 2011.
Mayor
Attest:
City Clerk .
The Mayor announced that further action with respect to the issuance of the Bonds would
be deferred until the Council meeting to be held on April 26, 2011.
Upon motion and vote, the meeting was adjourned.
Attest: Mayor
><ty Clerk
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