11-09-1938 HUCMSpecial Meeting
November 9, 1938
Pursuant to due call and notice thereof, a special
meeting of the Light & Power Commission of the City of
Hutchinson, Minnesota, was held at the office of the City
Attorney, Elmer C. Jensen, in said City on the 9th day of
November, 1938, at 1 :30 otclock P. M. .
The following members were present: Dr. R. I. Sheppard,
Dr. A. J. Thompson, R. W. Dahl.
The following members were absent: none.
Commissioner Thompson introduced the following resolution
and moved.its adoption:
WHEREAS the Light and Power Commission of the City of
Hutchinson has heretofore entered into a contract with Nordberg
Manufacturing Company of Milwaukee, Wisconsin, for the purchase
of an engine and generating unit, in accordance with plans and
specifications prepared by Buell & Winter Engineering Company,
of Sioux City, Iowa, the City Engineers, and
WHEREAS said engine and generating unit has been installed
by said Company and has been inspected, examined, and tested by
the said Engineers and found to be complete and satisfactory
in all respects and in accordance with the said plans and spec-
ifications and with the contract of purchase therefor, and
66
-nZD;u
0 c 0 M
cn3cDo
m m
O
?O 0
C E
0
0
CD 0
x'00
0Cno
0 ,, o
3 �-
0
-.%"a
o_
wQ
rn
N '
O N
o ;°
5
0
WHEREAS, under and pursuant to Chapter,17 of the Charter
of the City, the Commission is authorized to pledge the net earn-
ings of the Light & Power Plant to secure payment for any equipment
purchased for such plant and system after providing for the
payment of all operation and maintenance charges and setting
aside an amount annually sufficient to meet the interest and
principal requirements of previously created obligations of the
plant, and
WHEREAS the Commission has heretofore entered into a contract
with Carleton D. Beh Co., of Des Moines, Iowa, in which said Company
contracted and agreed to purchase pledge orders to be issued by
the Commission for such purpose in the amount of not to exceed
$90,000 bearing interest at the rate of 32°o per annum, the said
orders to be issued pursuant to the Charter provisions as herein -
above set forth, and
WHEREAS the said Carleton D. ,$eh Co. has agreed to and with
the Nordberg Manufacturing Company to receive from said Manufacturing
Company the pledge orders to be issued by the Commission to secure
payment for said equipment in accordance with its contract with
the "ity as hereinabove set forth,
NOW, THEREFORE,yBE-IT RESOLVED, by the Light and Power
Commission of the City of Hutchinson, Minnesota, as follows:
68
1. It is hereby found and determined that the engine and generating
equipment furnished by the Nordberg Manufacturing- .Company and instal -
led in the electric plant of the.City of Hutchins.on is in accordance
with the plans and specific.a.tions.. and. contract therefor and is
complete and satisfactory and is hereby &c.c.epted. in full perform-
ance of the said contract.
2. It is hereby determined that the amount due to Nordberg
Manufacturing Company as payment for said generating plant
and equipment is the sum of $84,415.32.
3. In order to secure payment for the said equipment and in
accordance with the provisions of the Charter of the City of
Hutchinson, there is hereby pledged the net earnings of the
electric plant and system of said City which sahll be computed
by deducting from the gross monthly earnings of said plant and
system the following amounts;
(a) The cost of all labor and materials required in the
operation and maintenance of said system;
(b) The amount required to pay principal and interest
on the outstanding electric bonds of the City, to
be computed by taking one - twelfth of the amount
required for such purpose during the ensuing twelve
months.
(c) Pledge Orders $7500.00 and due March 16, 1939.
The Treasurer is hereby authorized and directed to create a
separate interest and sinking fund for the payment of the pledge
orders to be issued hereunder and to pay into said fund the
entire net earnings of said plant after deduction as hereinabove
set forth; provided, however, that whenever at any there
shall be in such fund cash or negotiable securities equal in
principal amount to the principal and interest falling due on `
the pledge orders on the next payment date, any balance from the
net earnings may be used and applied in such manmDr as the
Commission may direct. Said fund shall be used solely and
exclusively to pay principal and interest on the pledge orders
herein provided when and as the same shall become due, provided
that all moneys in said fund in excess of the.amount required to
pay principal and interest on said pledge orders falling due
during the next calendar month may be used to pay and redeem
pledge orders prior to the maturity thereof in accordance with
the provisions of said orders and as hereinafter provided.
4. As evidence of the pledge of the net earnings as herein '.
provided, the Light and Power Commission shall issue and-deliver
to the Nordberg Manufacturing Company its pledge orders in the
total principal amount of $84,000, said pledge orders to be 84
in number and numbered 1 to 84, both inclusive, each in the
denomination of $1000, to bear date October 1, 1938, to bear
interest payable semi - annually on April 1 and Metober 1,'prior
to maturity and at maturity,,and to mature serially, one order
on the 1st day of each and every month co, encing October 1,
1939, and to and including Septe*er ;p 1943, and the remainder
thereof on October 1, 1943, all said pledge orders, however, to
be subject to prior payment and redemption at the option of the
Light and Power Commission on any interest payment date from
and after October 1, 1939, in serial order., commencing with
Order No. 1, upon thirty days written notice to the last known
holder therof.
5. The pledge orders to be issued hereunder shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF McLEOD
CITY OF HUTCHINSON
No. $1000
Pledge Order
FOR VALUE RECEIVED, the Light and Power Commission of the
City of Hutchinson, Minnesota, hereby promises to pay to Nordberg
Manufacturing Company, or assigns, on the lst day of , 19 ,
the sum of ONE THOUSAND DOLLARS, with interest thereon at the
rate of three and one -half (32) per cent per annum payable from
October 1, 1938, seibiannually on the lst days of April and October
in each year, and at maturity, on presentation and surrender of the
interest coupons hereto attached, both principal and interest
payable at the office of the City Treasurer, in the City of
Hutchinson, State of Minnesota.
On and after October 1, 1939, the pledge orders of this
series of which this pledge order is a part shall be callable
and payable in serial numerical order, at the option of the
said Light and Power Commission upon thirty (30) days written
notice to the last known holder laeredf.
This promise is not a general obligation or liability of
the City of Hutchinson payable or enforceable by taxes or special
assessments or from money raised by taxes or special assessments.
It is a special and limited obligation payable as to both principal
and interest from the net operating revenue of the electric utility
plant of said City of Hutchinson and is to pay for machinery and
equipment sold to said Light and Power Commission for installation
in the electric utility plant, and said net revenue is pledged
to the payment of the principal and interest hereof.
This pledge order is one of a series of Eighty-four (84)
pledge orders issued to evidence and to provide for payment of
the purchase price of said machinery. The pledge orders in this
series are,for the sum of One Thousand. Dollars (1000) each,
and are of like tenor except as to due dates thereof.
All proceedings, ordinances, conditions and things required
to exist or to be performed prededent to the making and entering
into of the purchase of the machinery specified herein, and to the
esecution,. delivery and validity of this pledge order accoring
to its terms, exist and have been duly performed according to law.
70
IN WITNESS WHEREOF the Light and Power Commission of said
City has caused this pledge order to be ai.gned by the President
and attested by its Secretary as of the lst_day.of October, 1938..
LIGHT AND POWER COMMISSION
of the City of chinson
EY•
resi ent
Attest=
Sec Olt ary
( Form of Coupon)
No.
On . , 19 , unless the pledge order herewith be
called for prior redemption, the Treasurer of the pity of Hutchinson,
Minnesota, will pay to Nordberg Manufacturing Company or assigns
out of the net operating revenue of the Electric Utility Plant
of said City.. DOLLARS at his office, Hutchinson,
Minnesota, for months interest on its Pledge Order
dated October 1, 1938,
No
President, L ght and Po er Commission
Attest:
SecreeAry
Each said pledge order shall have on the reverse or filing side
the following:
"For value received, the undersigned holder of the
within pledge order, hereby assigns, transfers, and
sets over the same and all its right, title, and interest
thereunder, together with the interest due thereon,
without recourse to Nordberg Manufacturing Company or
any warranty or representation by it, to
NORDBERG MANUFACTURING COMPANY
0
Its "
6. The pledge orders shall be prepared under the, direction of
the Secretary of the "ommission, and when so prepared shall be
executed on behalf of the Commission by the signature of the
President and Secretary, and the interest coupons shall be
executed and authenticated by the facsimile signatures of the
said President and Secretary en1graved or printed thereon.
7. When said pledge orders have been prepared and executed as
herein provided, ,the City Treasurer shall deliver the same to
Nordberg Manufacturing Company, or on their order, and upon
u
1
�l
receipt from them of an instrument reciting that the same have
been received as and for full payment under said contract.
B. The pledge orders issued hereunder shall be subject to prior
payment and redemption at the option .6f the Light and Power
Commission on any interest payment date at par and accrued interest
in serial order as to number and maturity. In order to call said
pledge orders, the Treasurer shall give thirty days prior notice
in writing to the last known holder thereof, which is hereby
understood and agreed to be Carleton D. Beh Co., unless and until
subsequent holder shall have filed his name and address with
the Secretary of the Commission.
9. The Secretary of the Commission and City Treasurer are hereby
authorized and directed to prepare and furnish to Carleton D. Beh
Co. and its attorneys certified copies of all proceedings and
records of the Commission relating to the issuance of said pledge
orders and the contract of Nordberg Manufacturing Company and such
other certificates as may be required to show the right, power,
and authority of the Commission to issue such pledge orders and
to pledge the net revenues of the plant, and said certified copies
and certificates shall be deemed the representations of the City
as to all facts stated therein.
The motion for the adoption of the foregoing resolution
was duly seconded by Commissioner Dahl, and upon vote being taken
thereon the following voted in favor thereof: Dr. R. I. Sheppard,
Dr. A. J. Thompson, R. W. Dahl$ and the follwwing voted against
the same: None.
Whereupon said resolution was declared duly passed and adopted.
Meeting adjourned.
Secret
Attest;
Presidert