06-25-2012 HUCMSpecial Meeting
June 25, 2012
Call to order — 2:01 p.m.
President Bordson called the meeting to order. Members present: President Dwight
Bordson, Vice President Craig Lenz; Secretary Leon Johnson; Commissioner Monty
Morrow; Commissioner Anthony Hanson; Attorney Marc Sebora; General Manager
Michael Kumm.
GM Kumm welcomed guest, Bruce Kimmel of Ehlers who is the City's financial advisor.
Mr. Kimmel discussed bond refinancing developments since his presentation in the
March regular commission meeting. HUC's rating by Moody's changed to an A -1 versus
the previous AA -2 rating resulting in higher interest rates for the bond refinancing and a
decrease in the potential savings. As a result, Mr. Kimmel recommended approval for a
lower savings threshold of $700,000. Resolution No. 1009 reflects the recommended
change.
After discussion, a motion was made by Secretary Johnson, seconded by
Commissioner Hanson to approve Resolution No. 1009 relating to public utility revenue
refunding bonds; series 2012A; approving the amendment by the City Council of
Resolution No. 13996 related thereto to save $700,000 or greater. Motion was
unanimously carried. (Resolution No. 1009 attached.)
There being no further business, a motion was made by Secretary Johnson, seconded
by Vice President Lenz to adjourn the meeting at 2:09 p.m. Motion was unanimously
carried.
ATTEST:
Dwight Bordson, President
Leon Johnson, Secretary
Special Meeting
June 25, 2012
Call to order — 2:01 p.m.
President Bordson called the meeting to order. Members present: President Dwight
Bordson, Vice President Craig Lenz; Secretary Leon Johnson; Commissioner Monty
Morrow; Commissioner Anthony Hanson; Attorney Marc Sebora; General Manager
Michael Kumm.
GM Kumm welcomed guest, Bruce Kimmel of Ehlers who is the City's financial advisor.
Mr. Kimmel discussed bond refinancing developments since his presentation in the
March regular commission meeting. HUC's rating by Moody's changed to an A -1 versus
the previous AA -2 rating resulting in higher interest rates for the bond refinancing and a
decrease in the potential savings. As a result, Mr. Kimmel recommended approval for a
lower savings threshold of $700,000. Resolution No. 1009 reflects the recommended
change.
After discussion, a motion was made by Secretary Johnson, seconded by
Commissioner Hanson to approve Resolution No. 1009 relating to public utility revenue
refunding bonds; series 2012A; approving the amendment by the City Council of
Resolution No. 13996 related thereto to save $700,000 or greater. Motion was
unanimously carried. (Resolution No. 1009 attached.)
There being no further business, a motion was made by Secretary Johnson, seconded
by Vice President Lenz to adjourn the meeting at 2:09 p.m. Motion was unanimously
carried.
L n Johnson, Secretary
ATTEST:
ht rdson, President
Resolution No. 1009
HUTCHINSON UTILITIES COMMISSION
RESOLUTION RELATING TO PUBLIC UTILITY REVENUE REFUNDING
BONDS, SERIES 2012A; APPROVING THE AMENDMENT BY THE CITY
COUNCIL OF RESOLUTION NO. 13996 RELATED THERETO
BE IT RESOLVED by the Hutchinson Utilities Commission (the "Commission ") as
follows:
1. Recitals. By a resolution adopted by the Commission on April 25, 2012 (the
"Concurring Resolution "), the Commission joined in and adopted Resolution No. 13996 adopted
by the City Council of the City of Hutchinson on April 24, 2012, related to the issuance by the
City of the Series 2012 Bonds to refund all or a portion of the City's 2003 Bonds. Capitalized
terms used herein and not otherwise defined herein shall have the meaning given to them in the
Concurring Resolution.
2. Approval of Amendment of Resolution No. 13996. It has been proposed that the City
Council adopt a resolution amending Section 1.02 of Resolution No. 13996 to read as follows:
"1.02. Sale and Bond Purchase Agreement. The Bonds authorized hereby shall be sold
to Barclays Capital Inc. (the "Underwriter ") at a purchase price of not less than 99.00% of the
principal amount of the Bonds (exclusive of original issue discount), the Bonds to be dated as of
the date of delivery, to bear interest at a rate or rates per annum resulting in net present value
savings to the City of not less than $700,000 (using the yield on the Bonds computed under
Section 1.148 -4 of the Regulations, as hereinafter defined, as the discount rate, and assuming that
(i) estimated investment earning on amounts deposited in the debt service reserve fund for the
Bonds are used to pay annual debt service on the Bonds and (ii) amounts deposited in the debt
service reserve fund for the Bonds are used to pay debt service on the Bonds in the final year of
the Bonds) and to mature no later than December 1, 2026. The principal amount of the Bonds
shall not exceed the amount necessary to accomplish the refunding of the Refunded Bonds, to
fund a debt service reserve fund by the Bonds in the amount required by the Bond Resolution
and to pay costs of issuing the Bonds (including underwriter's discount, any original issue
discount and the costs of bond insurance, if recommended by the Underwriter). The Mayor and
City Administrator are hereby authorized and directed to agree with the Underwriter upon the
exact purchase price, principal amount, maturities, redemption provisions and interest rate or
rates for the Bonds, within the parameters set forth in this section. The execution of a Bond
Purchase Agreement setting forth such final terms by the Mayor and City Administrator is
hereby approved and authorized and such execution shall be conclusive evidence of such
agreement and shall be binding upon the City. The provisions of the Bond Purchase Agreement
as so executed, including all Exhibits and Appendices thereto, are incorporated herein by
reference. The law firm of Dorsey & Whitney LLP, in Minneapolis, Minnesota, is hereby
appointed as bond counsel and disclosure counsel for purposes of this issue of Bonds."
The Commission hereby approves the adoption by the Hutchinson City Council of a
resolution amending Section 1.02 of Resolution No. 13996 to read as set forth above, and hereby
joins in and adopts the amendment of Section 1.02 of Resolution No. 13996 with the same force
and effect as if such resolution amending Section 1.02 of Resolution No. 13996 had been
adopted by the Commission.
Adopted: June 25, 2012.