HomeMy WebLinkAbout2013-1060-12/16/2013(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of the City of Waterloo, State of Iowa.
Date of Meeting: December 16, 2013.
Time of Meeting: 5:30 o'clock P.M.
Place of Meeting: Council Chambers, City Hall, 715 Mulberry Street, Waterloo,
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 the
meeting is as follows:
$7,435,000 General Obligation Bonds, Taxable Series 2009A (Build America Bonds)
• Resolution Approving Closing Agreement
Such additional matters as are set forth on the additional 5 page(s) attached hereto.
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of the governmental body.
Suzy Scha es, City Clerk
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December 16, 2013
The City Council of the City of Waterloo, State of Iowa, met in regular session, in
the Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa, at 5:30 o'clock
P.M., on the above date. There were present Mayor Ernest G. Clark, in the chair, and the
following named Council Members:
Cole, Getty, Jones, Greenwood, Schmitt, Welper, Hart
Absent: none
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Council Member Hart introduced the following Resolution entitled
"RESOLUTION APPROVING CLOSING AGREEMENT", and moved that the same be
adopted. Council Member Greenwood seconded the motion to adopt. The roll was called
and the vote was,
AYES: Cole, Getty, Jones, Greenwood, Schmitt,Welper, Hart
NAYS: none
Whereupon, the Mayor declared the Resolution duly adopted as follows:
RESOLUTION NO. 2013-1060
RESOLUTION APPROVING CLOSING AGREMEENT
WHEREAS, on June 24, 2009 the City issued its $7,435,000 General Obligation
Bonds, Taxable Series 2009A (Build America Bonds); and
WHEREAS, pursuant to this then -new financing program, certain limitations were
imposed on the interest rates at which certain bonds could be re -offered to the public ("de
minimis premium limitations"), however, qualified bonds are entitled to a rebate of 35%
of the interest paid by the Issuer on the bonds (which amount was subsequently changed
to 28% due to the federal budget sequester); and
WHEREAS, the offering documents for the Bonds included the de minimis
premium limitations as such were outlined in applicable regulations; and
WHEREAS, on July 29, 2013, the Bonds were selected for routine review by the
Internal Revenue Service; and
WHEREAS, the Service has not formally asserted any claims against the City
related to the Bonds, but now interprets the regulations to requires a different application
of the de minimis premium limitations; and
WHEREAS, while arguments exist to refute the Service's interpretation of the
regulations, there is no cost-effective venue or process to change and clarify contested
claims; and
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WHEREAS, City staff has negotiated a settlement with the Service to resolve
further inquiry on the point of the re -offered pricing for the Bonds; and
WHEREAS, the Service has presented the City with a "Closing Agreement" to
resolve the inquiry to preserve the status of the Bonds as "Build America Bonds" under
the Code thereby securing the right to retain past, and continue to receive future, tax
credit rebates on the Bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF WATERLOO, STATE OF IOWA:
Section 1. That the Closing Agreement and Consent attached hereto as Exhibit A
is hereby approved, and the Mayor and Clerk are directed to execute the same on behalf
of the City.
Section 2. That executed copies of the Closing Agreement and Consent, along
with payment in the amount of $5,000 in satisfaction thereof, shall be provided in
accordance with the Agreement.
PASSED AND APPROVED this 16th day of December, 2013.
ATTEST:
Suzy Schares City Clerk
00987348-1\11310-000
sE
est G. Clark, Mayor
EXHIBIT A
Closing Agreement - Consent
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CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF BLACK HAWK )
I, the undersigned City Clerk of the City of Waterloo, State of Iowa, do hereby
certify that attached is a true and complete copy of the portion of the corporate records of
the City showing proceedings of the City Council, and the same is a true and complete
copy of the action taken by the Council with respect to the 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 the agenda
being attached hereto) pursuant to the local rules of the Council and the provisions of
Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at
least twenty-four hours prior to the commencement of the meeting as required by 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 the 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 the City hereto affixed this 16th day of
December, 2013.
(SEAL)
00987348-1\11310-000
Suzy Sch es, City Clerk
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