HomeMy WebLinkAbout2020-04-20-J01I GO Urban Renewal Bonds Series 2020A_Appoint AgentAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: April 20, 2020
AGENDA ITEM:Consideration of approval of a resolution appointing Paying Agent, Bond
Registrar, and Transfer Agent, approving the Paying Agent and Bond
Registrar and Transfer Agent Agreement and authorizing the execution
of the Agreement [$12,800,000 General Obligation Urban Renewal
Bonds, Series 2020A]
FORMAT:Consent Agenda
SYNOPSIS INCLUDING PRO & CON: On 03/23/2020, the City Council rejected all
bids received for General Obligation Urban Renewal Bonds, Series
2020A, and instead move forward with private placement:
Resolution: Consideration of approval of a resolution directing sale of $12,100,000
(subject to adjustment per terms of offering) General Obligation Urban Renewal
Bonds, Series 2020A – Prior to any motion, Jon Burmeister with Public Financial
Management (PFM) highlighted recent market developments, resulting in an unfavorable
municipal bond market. He reviewed the bid tabulation, noting that eight bids were
received and all were competitive, but at a higher interest rate than expected. An
alternative approach to move forward through private sale would allow the City to seek
proposals from financial institutions instead of the municipal bond market. Mr.
Burmeister recommended the council reject all bids and move forward with a private
placement agreement. Council Member Sinclair asked if there was any reason not to
move forward with a private placement agreement; Mr. Burmeister advised that the
private placement agreement would lock in the rate at approximately 2.2% true interest
cost and that, while the City could rebid in several months, the market was uncertain.
Finance Director Burkhart noted that the City has used private placement in the past for a
gas revenue bond. Council Member Bottenberg agreed that the City did not have 6-9
months to see what happens in the market, but asked if the bidding could be postponed
for a year; Ms. Burkhart replied in the negative, as projects to be financed with the bonds
have already begun and the City has started making payments. Mayor Clarke noted very
unprecedented times in the municipal bond market and expressed her belief that other
entities would also be going with private placement. Council Member Bottenberg moved
to reject all bids; seconded by Council Member Lyon. Results of vote to reject all bids:
Ayes: Bergman, Bottenberg, Crone, Lyon, Sinclair. Nays: None. Motion carried 5 – 0.
Resolution: Consideration of approval of a resolution approving Engagement
Agreement for Private Placement – Council Member Lyon moved to approve the
resolution; seconded by Council Member Crone. Mayor Clarke noted that a special
council meeting was needed later in the week to finalize the terms of the bond; Finance
Director Burkhart added that the approval was required by March 30. Results of vote:
Ayes: Bergman, Bottenberg, Crone, Lyon, Sinclair. Nays: None. Motion carried 5 – 0.
(Resolution #2020-104)
J1I
On 03/27/2020, the City Council approved a proposal related to General Obligation Urban
Renewal Bonds, Series 2020A:
Resolution: Consideration of approval of proposal (General Obligation Urban
Renewal Bonds, Series 2020A) – Council Member Lyon moved to approve the
resolution; seconded by Council Member Bergman. Jon Burmeister with Public
Financial Management (PFM) reviewed the proposed term sheet, as well as recent market
changes. (Council Member Crone joined the meeting at 12:05 p.m.) Finance Director
Burkhart clarified the bond amount as needed to fund additional project construction
costs. Results of vote: Ayes: Bergman, Crone, Lyon, Sinclair. Nays: None. Absent:
Bottenberg. Motion carried 4 – 0 – 1. (Resolution #2020-111)
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:$12,800,000
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: City Bond Counsel has provided the proceedings.
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
PREPARED BY:Becky Schuett
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION:
DATE OF PUBLICATION:
RESOLUTION 2020-
RESOLUTION APPOINTING UMB BANK, N.A. OF WEST
DES MOINES, IOWA, TO SERVE AS PAYING AGENT, BOND
REGISTRAR, AND TRANSFER AGENT, APPROVING THE
PAYING AGENT AND BOND REGISTRAR AND TRANSFER
AGENT AGREEMENT AND AUTHORIZING THE
EXECUTION OF THE AGREEMENT
WHEREAS, $12,800,000 General Obligation Urban Renewal Bonds, Series 2020A,
dated May 7, 2020, have been sold and action should now be taken to provide for the
maintenance of records, registration of certificates and payment of principal and interest in
connection with the issuance of the Bonds; and
WHEREAS, this Council has deemed that the services offered by UMB Bank, N.A. of
West Des Moines, Iowa, are necessary for compliance with rules, regulations, and requirements
governing the registration, transfer and payment of registered bonds; and
WHEREAS, a Paying Agent, Bond Registrar and Transfer Agent Agreement (hereafter
"Agreement") has been prepared to be entered into between the City and UMB Bank, N.A.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WAUKEE, STATE OF IOWA:
1.That UMB Bank, N.A. of West Des Moines, Iowa, is hereby appointed to serve as
Paying Agent, Bond Registrar and Transfer Agent in connection with the issuance of
$12,800,000 General Obligation Urban Renewal Bonds, Series 2020A, dated May 7, 2020.
2.That the Agreement with UMB Bank, N.A. of West Des Moines, Iowa, is hereby
approved and that the Mayor and Clerk are authorized to sign the Agreement on behalf of the
City.
PASSED AND APPROVED this 20th day of April, 2020.
Mayor
ATTEST:
City Clerk