Bond Sale Refund Nslsnvrd
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MEMORANDUM
March 28, 2006
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Bond Sale to Partially Refund $2,750,000 General Obligation Bonds,
Series 2000B dated June 1, 2000 and $6,290,000 General Obligation
Bonds, Series 2000C dated November 1, 2000
The sale of General Obligation Bonds to partially refund $2,750,000 General Obligation
Bonds, Series 2000B dated June 1, 2000 and $6,290,000 General Obligation Bonds,
Series 2000C dated November 1, 2000 will be held Monday, April 3, 2006 at 11 :00 a.m.
The results will be brought to the April 3 City Council meeting.
(Jt/ k~
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Ken TeKippe, Finance Director
.,
'...
.
AHLERS ~COONEY, P.C.
ATTORNEYS AT LAW
100 COURT AVENUE. SUITE 600
OES MOINES. IOWA 50309-2231
PHONE 515-2~-7611
FAX. 515-2~-2149
WWW.AHlERSLAW.COM
WilLIAM J. NOTH
WNOTHOAHlERSLAW.COM
Direct Dial:
(5151246-0332
March 23, 2006
BY OVERNIGHT DELIVERY
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
RE: $2,900,000 General Obligation Bonds, Series 2006A
$910,00 General Obligation Urban Renewal Bonds,
Series 2006B
$3,495,000 General Obligation Refunding Bonds, Series 2006C
Dear Mr. TeKippe:
With this letter I am enclosing suggested proceedings for the sale date of April 3,
2006, awarding the above Bonds to the best bidders for the same.
At the designated time, sealed and electronic bids for the Bonds should be
received by the Finance Officer and listed in a report of sale to be delivered to the City
Council. After a final call for sealed bids, the bids should then be opened and the best
bid recorded. Only sealed and electronic bids are permitted by the terms of sale. All bids
should then be referred to the Council for award of the Bonds.
The Terms of Offering set out the restrictions on the type of interest rates which
may be bid. Bids must comply with the Terms of Offering. Different interest rates may
be bid for each issue. Each interest rate must be in a multiple of one-eighth or one-
twentieth of one percent.
WISHARD & BAILY - 1888: GUERNSEY & BAlLY - 1893: BAILY & STIPP - 1901: STIPP. PERRY, BANNISTER & SlARZINOER - 1916. BANNISTER. CARPENTER.
AHLERS & COONEY ~ 1950;AHlERS. COONEY. DORWEILER, AlLBEE, HAYNIE & SMITH -1974; AHLERS. COONEY, DORWEILER, HAYNIE. SMlTH & ALLBEE. P.C. -1990
~
March 23, 2006
Page 2
Extra copies of the proceedings are enclosed to be completed as the originals and
returned to us for our transcript of the action taken. We also would appreciate receiving
copies of the signed bid forms for each series.
If any questions arise, please keep me advised.
Yours very truly,
~
William J. Noth
WJN:dc
encl.
cc: Barry Lindahl
Tionna Pooler
DCORNELL\486669.1 \ WPlI 0422071
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
The City Council of Dubuque, Iowa.
Date of Meeting:
,2006.
Time of Meeting:
o'clock .M.
Place of Meeting:
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for said
meeting is as follows:
$3,495,000 General Obligation Refunding Bonds, Series 2006C
. Resolution directing sale.
Such additional matters as are set forth on the additional page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 2 I, Code of
Iowa, and the local rules of said governmental body.
City Clerk, Dubuque, Iowa
,2006
The Finance Director of Dubuque, Iowa, met in the office of the Finance Director,
City Hall, Dubuque, Iowa, at o'clock _.M., on the above date, to open sealed
bids received, access electronic bids and to refer the sale of the Bonds to the best and
most favorable bidder for cash, subject to approval by the City Council at
o'clock .M. on the above date.
The following persons were present:
********
-1-
This being the time and place for the opening of bids for the sale of $3,495,000
General Obligation Refunding Bonds, Series 2006C, the meeting was opened for the
receipt of bids for the Bonds. The following actions were taken:
I. Sealed bids were filed and listed in the minutes while unopened, as follows:
Name & Address of Bidders:
2. The Finance Officer then declared the time for filing of sealed bids to be closed
and that the sealed bids be opened. The sealed bids were opened and announced.
3. Electronic bids received were accessed and announced as follows:
Name & Address of Bidders:
4. The best bid was determined to be as follows:
Name & Address of Bidder:
Net Interest Cost: $
True Interest Cost:
%
All bids were then referred to the Council for action in accordance with the Notice
of Sale.
-2-
,2006
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
the above date. There were present Mayor
and the following named Council Members:
session, in the
o'clock .M., on
, in the chair,
Absent:
*******
-3-
.
Council Member introduced the following
Resolution entitled "RESOLUTION DIRECTING SALE OF GENERAL OBLIGATION
REFUNDING BONDS, SERIES 2006C" and moved its adoption. Council Member
seconded the motion to adopt. The roll was called and the
vote was,
AYES:
NAYS:
Whereupon, the Mayor declared the following Resolution duly adopted:
RESOLUTION DIRECTING SALE OF GENERAL
OBLIGATION REFUNDING BONDS, SERIES 2006C
WHEREAS, pursuant to notice as required by law, bids have been received at
public sale for the Bonds described as follows and the best bid received is determined to
be the following:
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2006C:
Bidder:
of
the terms of said bid being:
Principal Amount: $
Purchase Price: $
True Interest Cost:
%
Net Interest Cost: $
-4-
.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section I. That the bid for the Bonds as above set out is hereby determined to be
the best and most favorable bid received and, said Bonds are hereby awarded based on
said bid.
Section 2. That the statement of information for Bond bidders and the form of
contract for the sale of said Bonds are hereby approved and the Mayor and Clerk are
authorized to execute the same on behalf of the City.
Section 3. That the notice ofthe sale ofthe Bonds heretofore given and all acts of
the Clerk done in furtherance of the sale of said Bonds are hereby ratified and approved.
PASSED AND APPROVED, this
day of
,2006.
Mayor
ATTEST:
City Clerk
-5-
.
. .
CI G-3
9/91
CERTIFICATE
STATE OF IOWA
)
) SS
)
COUNTY OF DUBUQUE
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is
a true and complete copy ofthe portion of the corporate records of said Municipality
showing proceedings of the Council, and the same is a true and complete copy ofthe
action taken by said Council with respect to said matter at the meeting held on the date
indicated in the attachment, which proceedings remain in full force and effect, and have
not been amended or rescinded in any way; that meeting and all action thereat was duly
and publicly held in accordance with a notice of meeting and tentative agenda, a copy of
which was timely served on each member of the Council and posted on a bulletin board
or other prominent place easily accessible to the public and clearly designated for that
purpose at the principal office of the Council (a copy of the face sheet of said agenda
being attached hereto) pursuant to the local rules of the Council and the provisions of
Chapter 21, Code ofIowa, upon reasonable advance notice to the public and media at
least twenty-four hours prior to the commencement of the meeting as required by said law
and with members of the public present in attendance; I further certify that the individuals
named therein were on the date thereof duly and lawfully possessed of their respective
city offices as indicated therein, that no Council vacancy existed except as may be stated
in said proceedings, and that no controversy or litigation is pending, prayed or threatened
involving the incorporation, organization, existence or boundaries of the City or the right
of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of said Municipality hereto affixed this
day of , 2006.
City Clerk, Dubuque, Iowa
SEAL
DCORNELL\486672.1 \ WP\ I 0422071
-6-
"
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
The City Council of Dubuque, Iowa.
Date of Meeting:
Apri 1 3 ,2006.
Time of Meeting:
6: 30 o'clock p.M.
Place of Meeting:
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for said
meeting is as follows:
$3,495,000 General Obligation Refunding Bonds, Series 2006C
. Resolution directing sale.
Such additional matters as are set forth on the additional 9 page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
~
ity Clerk, Dubuque, Iowa
..
April 3
.2006
The Finance Director of Dubuque, Iowa, met in the office of the Finance Director,
City Hall, Dubuque, Iowa, at 11: 00 o'clock ~.M., on the above date, to open sealed
bids received, access electronic bids and to refer the sale of the Bonds to the best and
most favorable bidder for cash, subject to approval by the City Council at 6: 30
o'clock x....M. on the above date.
The following persons were present:
Tionna Pooler, Public Financial Management
Ken TeKippe, Dawn Lange, Jeanne Schneider,
City of Dubuque
* * * * * * * *
-1-
.'
This being the time and place for the opening of bids for the sale of$3,495,000
General Obligation Refunding Bonds, Series 2006C, the meeting was opened for the
receipt of bids for the Bonds. The following actions were taken:
1. Sealed bids were filed and listed in the minutes while unopened, as follows:
Name & Address of Bidders:
2. The Finance Officer then declared the time for filing of sealed bids to be closed
and that the sealed bids be opened. The sealed bids were opened and announced.
3. Electronic bids received were accessed and announced as follows:
Name & Address of Bidders:
See attached tabulation of bids
4. The best bid was determined to be as follows:
Name & Address of Bidder:
UMB Bank
Net Interest Cost: $ 1,542,795.82
True Interest Cost: 4.0370
%
All bids were then referred to the Council for action in accordance with the Notice
of Sale.
-2-
.
TABULATION OF BIDS
City of Dubuque, Iowa
$3,495,000* General Obligation Refunding Bonds, Series 2006C
UMB BANK, B.a.
3.80% 2010-2015
3.875% 2016
4.00% 2017-2018
4.10% 2019
4.15% 2020
4.00% 2010-2017
4.10% 2018
4.15% 2019
4.20% 2020
RATINGS: Moody's Aa2
NAME OF BIDDER
COUPON
RATE
. UMB BANK, n.a.
Kansas City, Missouri
American Trust and Savings Bank
Dubuque, Iowa
3.65%
3.70%
3.75%
3.80%
3.85%
3.90%
3.95%
4.00%
4.05%
4.10%
STIFEL, NICOLAUS & CO., INe.
Minneapolis, Minnesota
4.00%
ROBERT W. BAIRD & CO.
Milwaukee, Wisconsin
DUNCAN-WILLIAMS, INC.
NATCITY INVESTMENTS, INC.
ROSS, SINCLAIRE & ASSOCIATES, INC.
4.00%
GRIFFIN, KUBIK, STEPHENS &
THOMPSON, INe.
Chicago, lllinios
CRONIN & CO., INC.
Minneapolis, Minnesota
~
-PFM'
~ !~~~!~~~~~~p
SALE DATE: April 3, 2006
NET INTEREST COST
YEAR & TRUE INTEREST RATE
PRICE
2010 $1,543,957.40*
2011
2012-2013 4.0399%*
2014
2015
2016
2017
2018
2019
2020
$3,477 ,874.50*
2010-2020 $1,548,436.57
$3,477,425.10
4.0577%
2010-2020
$1,553,807.72
$3,472,053.95
4.0755%
$1,573,625.48
$3,460,513.11
4.1299%
$1,584,989.57
$3,482,843.15
4.1462%
2600 Grand Avenue
Suite 214
Des Moines. IA 50312
.
$3,495,000 General Obligation Refunding Bonds, Series 2006C
tity of Dubuque, Iowa
Monday, April 3, 2006
Page 2
COUPON NET INTEREST COST
NAME OF BIDDER RATE YEAR & TRUE INTEREST RATE PRICE
RBC DAIN RAUSCHER INC. 4.00% 2010-2018 $1,581,688.80 $3,463,411.85
Chicago, minois 4.10% 2019-2020
4.1531%
HARRIS N/A
Chicago, minois
WELLS FARGO BROKERAGE
SERVICES LLC
Minneapolis, Minnesota
FIN Financial Capital Markets
Isaak Bond Investments, Inc.
The Bankers Bank
Ruan Securities Corporation
Axelrod Associates, Inc.
4.00% 2010-2017 $1,584,207.65
4.05% 2018-2019
4.10% 2020 4.1621%
4.00% 2010-2016 $1,590,821.99
4.05% 2017-2018
4.10% 2019 4.1778%
4.125% 2020
$3,460,399.50
PIPER JAFFRAY COMPANY
Kansas City, Missouri
$3,461,970.70
* Subsequent to the receipt of bids, the City increased the aggregate par amount of refunding bonds to $3,525,000.00. The
resulting Purchase Price was increased to $3,507,736.76, the Net Interest Cost decreased to $1,542,795.82 and the True Interest
Rate decreased to 4.0370%.
"
April 4
,2006
The City Council of Dubuque, Iowa, met in Regular session, in the
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at 6: 30 o'clock p.M., on
the above date. There were present Mayor Roy D. Buol , in the chair,
and the following named Council Members:
Karla Braig, patricia Cline, Joyce Connors,
Ric Jones, Kevin Lynch, Ann Michalski
Absent:
None
*******
-3-
.
Council Member Pat ri cia C 1 in e introduced the following
Resolution entitled "RESOLUTION DIRECTING SALE OF GENERAL OBLIGATION
REFUNDING BONDS, SERIES 2006C" and moved its adoption. Council Member
Ric Jones seconded the motion to adopt. The roll was called and the
vote was,
AYES: Braig, Buol, Cline, Connors,
Jones, Lynch, Michalski
NAYS:
None
Whereupon, the Mayor declared the following Resolution duly adopted:
RESOLUTION NO. 131-06
RESOLUTION DIRECTING SALE OF GENERAL
OBLIGATION REFUNDING BONDS, SERIES 2006C
WHEREAS, pursuant to notice as required by law, bids have been received at
public sale for the Bonds described as follows and the best bid received is determined to
be the following:
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2006C:
Bidder: UMB Bank
of Kansas City, Missouri
the terms of said bid being:
Principal Amount: $ 3,525,000.00
Purchase Price: $
3,507,736.76
True Interest Cost:
4.0370
%
Net Interest Cost: $ 1,542,795.82
-4-
" . ,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That the bid for the Bonds as above set out is hereby determined to be
the best and most favorable bid received and, said Bonds are hereby awarded based on
said bid.
Section 2. That the statement of information for Bond bidders and the form of
contract for the sale of said Bonds are hereby approved and the Mayor and Clerk are
authorized to execute the same on behalf of the City.
Section 3. That the notice of the sale of the Bonds heretofore given and all acts of
the Clerk done in furtherance of the sale of said Bonds are hereby ratified and approved.
PASSED AND APPROVED, this 3rd day of April, 2006.
Roy D. Buol, Mayor
ATTEST:
Jeanne F. Schneider, City Clerk
-5-
" , . ,., f~
CIG-3
9/91
CERTIFICATE
STATE OF IOWA
)
) SS
)
COUNTY OF DUBUQUE
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is
a true and complete copy of the portion of the corporate records of said Municipality
showing proceedings of the Council, and the same is a true and complete copy of the
action taken by said Council with respect to said matter at the meeting held on the date
indicated in the attachment, which proceedings remain in full force and effect, and have
not been amended or rescinded in any way; that meeting and all action thereat was duly
and publicly held in accordance with a notice of meeting and tentative agenda, a copy of
which was timely served on each member of the Council and posted on a bulletin board
or other prominent place easily accessible to the public and clearly designated for that
purpose at the principal office of the Council (a copy of the face sheet of said agenda
being attached hereto) pursuant to the local rules of the Council and the provisions of
Chapter 21, Code ofIowa, upon reasonable advance notice to the public and media at
least twenty-four hours prior to the commencement of the meeting as required by said law
and with members of the public present in attendance; I further certify that the individuals
named therein were on the date thereof duly and lawfully possessed of their respective
city offices as indicated therein, that no Council vacancy existed except as may be stated
in said proceedings, and that no controversy or litigation is pending, prayed or threatened
involving the incorporation, organization, existence or boundaries of the City or the right
of the individuals named therein as officers to their respective positions.
WI1NESS my hand and the seal of said Municipality hereto affixed this 4th
day of Apri 1 ,2006.
ity Clerk, Dubuque, Iowa
SEAL
[K;ORl'ELL\486670.1\VVPll0422071
-6-
RESOLUTION NO. 132-06
A RESOLUTION AUTHORIZING THE FILING OF AN IOWA
DEPARTMENT OF ECONOMIC DEVELOPMENT APPLICATION FOR
FINANCIAL ASSISTANCE ON BEHALF OF THE MCGRAW-HILL
COMPANIES, INC.
Whereas, The McGraw-Hili Companies, Inc. has proposed the expansion and
relocation of its operations to the Port of Dubuque, Iowa; and
Whereas, the City Council of Dubuque, Iowa has considered said proposal and
has determined that the proposed project will contribute to the local economy through
the retention of 276 full-time jobs and the creation of 24 new full-time jobs for area
residents; and
Whereas, the Iowa Department of Economic Development's financial assistance
programs are designed to assist in the economic development efforts of local
jurisdictions; and
Whereas, the City of Dubuque, Iowa is eligible to apply for funding from the state's
financial assistance programs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the filing of an Iowa Department of Economic Development
Application for Financial Assistance on behalf of The McGraw-Hili Companies, Inc. is
hereby approved.
Section 2. That the local match identified in the application consisting of a land
discount and a 10-year TIF rebate to the company is hereby approved, subject to the Iowa
Department of Economic Development's approval of the application.
Section 3. That the Mayor is hereby authorized to execute and the City Manager is
hereby directed to submit said application to the Iowa Department of Economic
Development together with such documents as may be required.
Passed, approved, and adopted this 3rd day of April 2006.
Attest:
/"
Jeanne Schneider, City Clerk
F:IUSERSIPMyhreIWPDOCSILOANDOCIMCGRAWHILL2\CEBA app res.doc