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06-14-1971 HUCM162 V-s ftsw ft--V Monthly Meeting June 14, 1971 The month7_7 meeting of the Hutchinson Utilities Commission was held on June 14, 1971 at two o'clock P. M. in the Hutchinson Utilities meeting place. All Commissioners were present; also Steve Wacker and Orville Kuiken. The meeting was called to order by the President and the minutes of the regular and special meetings were read and approved as read. The Commission discussed a revision in the gas rate structure which had been presented by Superintendent Orville Kuiken. A motion was made by Commissioner Fil.k, seconded by Commissioner Tracy and unanimously carried requesting Superintendent Kuiken check further into a rate change and present a detailed report to the Commission at a special meeting to be held in the future. Motion was made by Commissioner Filk, seconded by Commissioner Tracy and unanimously carried to sponsor a queen candidate for the 1971 Hutchinson Jaycee Water Carnival. Certified checks which accompanied the bond bids belonging to have been .returned and signed receipts are in the bond file. The Commission was informed that the 1971 annual meeting of the Minnesota Municipal Utilities Association would be held at Alexandria, Minnesota on June 199 20, and 21st. Motion was made by Commissioner Tracy, seconded by Commissioner Filk and unanimously carried authorizing; payment of expenses to any Commissioner able to attend; also the expenses of Manager R. E. Young and Assistant Manager Steve Wacker. Motion was made by Commissioner Tracy, seconded by Commissioner Filk and unanimously carried to investigate the possibility of the Hutchinson Utilities Commission installing and operating cable TV in the City of Hutchinson. Steve Wacker was authorized to obtain available information relative to cable TV and to prepare and submit a report at the next regular meeting. Motion was made by Commissioner Filk, seconded by Commissioner Tracy and unanimously carried to increase the monthly wage of Wayne Anderson by $25.00 per month, effective June 1, 1971. John Nuveen 8c Company, Inc. 2580 First National Bank Building Minn eanolis, Minnesota 55101 Dain, Kalman & Quail, Inc. 136 Endicott Building Minneapolis, Minnesota 55101 have been .returned and signed receipts are in the bond file. The Commission was informed that the 1971 annual meeting of the Minnesota Municipal Utilities Association would be held at Alexandria, Minnesota on June 199 20, and 21st. Motion was made by Commissioner Tracy, seconded by Commissioner Filk and unanimously carried authorizing; payment of expenses to any Commissioner able to attend; also the expenses of Manager R. E. Young and Assistant Manager Steve Wacker. Motion was made by Commissioner Tracy, seconded by Commissioner Filk and unanimously carried to investigate the possibility of the Hutchinson Utilities Commission installing and operating cable TV in the City of Hutchinson. Steve Wacker was authorized to obtain available information relative to cable TV and to prepare and submit a report at the next regular meeting. Motion was made by Commissioner Filk, seconded by Commissioner Tracy and unanimously carried to increase the monthly wage of Wayne Anderson by $25.00 per month, effective June 1, 1971. 163 Mot ion w as made by C ommiss i o and unanimously carried to p for repairing the old well. Motion was made by Co °I' missio and unanimously carried to a 1500 KVA transformer, both t school. advertisement for B Leader on July 8th and July at 2:00 P. M. (Copy of kdver face of these minutes.) Motion was made by C ommissi o and unanimously carried to p 14th as the regular meeting Commissioners being out of t The following bills were all Natural Gas Division Ml,,nie 1pa.y Electric Plant Municipal Electric Plant Northern States Supply Inc. Minn. -Wisc. Truck Lines Natures l Gas Division Bill Marquardt Standard Printing Company Hutchinson Telephone Company G. F. Nemitz Sons Home Bakery Mueller Company Roy's Tire Service American Linen Supply 0. A. Bretzke & Son Northern States Supply Inc Hutch ins on Leader Hutchinson Wholesale Supply Hager Jewelry Farm & Home Dist. Company Albrecht Oil Company Del Chemical Corporation Central Supply Company Ben Jerabek H. D. Lee Company Hoffman Plumbing & Heating Municipal Water Plant Red Owl Food Stores Wigen Chevrolet Company Natural Gas Division Minn. Wisc. Truck Lines Guy Speaker Inc. FURNISHING OF TRANSFORMERS FOR THE MUNICIPAL ELECTRIC - BIDS CLOSE' AUG. 9 Hutchinson, Minne�� ADVERTISEMENT hTSFrBi�D- Notice is hereby given that the HUTCHINSON UTILITIES COMMIS- SION OF THE CITY OF HUTCHINSON, MINNESOTA will receive sealed bids at the Utilities Commission Office un- til 2:00 o'clock P.M. on the 9th day of August, and on said day and hour will publicly open and read aloud such bids on the following items: BID ITEM I Furnishing and mounting a 750 KVA, 13,800 volt delta, 480Y/277 volts, three phase, oil filled, pad - mounted transformer. BID ITEM II Furnishing and mounting a 1500 KVA, 13,800 volt delta, 480Y/277 volts, three phase, oil filled, pad - mounted transformer. At the aforestated time and place, the Commission will act upon the proposals received and within its sole discretion will award a contract or contracts for said improvements. All proposals shall be submitted in triplicate on the bidders' own letter- head, in facsimile of the proposal form enclosed in the specifications, or by utilizing the proposal forms enclosed with the specifications by typing the official name of the bidder at the top of the form. Each bid shall be accompanied by a Bidder's Bond or Certified Check, made payable to the Secretary of THE HUTCHINSON UTILITIES COM- MISSION OF THE CITY OF HUTCH - INSON, HUTCHINSON, MINNESOTA, in the amount of five per cent (5 %) of the bid, as a guarantee that the Bidder will enter into the proposed contract within the time specified. No bidder may withdraw his bid or bids for a period of thirty (30) days after date of opening. The successful bidder will furnish a Performance Bond in an amount equal to one hundred per cent (100 %) for each contract price awarded to him. Specifications are on file at the of- fice of Mr. Ralph Young, Manager of Utilities, City of Hutchinson, Minne- sota, and Associated Consultants, 420 Sexton Building, Minneapolis, Minne- sota (55415), where they are available for examination. Copies may be ob- tained from Associated Consultants upon the deposit of Ten Dollars ($10.- 00) per set. This deposit will be re- funded to all bona fide bidders, upon the return of the specifications and other documents not submitted with the proposal, in good condition, with- in ten (10) days after award of con- tract. The HUTCHINSON UTILITES COM- MISSION OF THE CITY OF HUTCH - INSON, MINNESOTA reserves the right to reject any and all bids of each item or items of equipment. HUTCHINSON UTILITIES COMMISSION OF THE CITY OF HUTCHINSON HUTCHINSON, MINNESOTA (This notice first appeared July 22) Construction Bulletin 1022 Upper Midwest Building Minneapolis, Minn. 55401 is the only paper furnishing complete Northwest construction news. It is closely read every week by architects, engineers, contractors, builders, mate- rial men and bond buyers. Official advertising, 30 cents per line each insertion. This includes 1. Publication of the call for bids in the Construction Bulletin. 2. A copy of the Bulletin containing your ad. 3. Listing of the closing date of your work in an Index of Proposals for convenient use of contractors. 4. Fifteen separate printed copies of the ad mailed to you for your own use. mission Filk 2,286.18 iss ioner Tracy 0 KVA a nd a the new vocational Hutch ins on ugust 9th ached to the missioner Filk eeting to July s with several Division 146.39 29.15 8,165.53 5.80 9.09 32.11 25.00 123.07 76.4' 1.20 24.78 191.02 29.97 9.95 4.00 39.88 33.75 30.25 6.50 13.43 53.20 76.22 72.67 22.40 23.07 1.38 13.45 10.95 37.50 56.16 6.65 19.80 1 1 CERTIFICATION OF MINUTES RELATING TO $2,000,000 Light and Power Plant Revenue Bonds Issuer: Hutchinson Utilities Commission of the City of Hutchinson, Minnesota. Governing body: Commissioners. Kind, date, time and place of meeting: Regular meeting, May 10, 1971, at ten o'clock iA.M., at the Utilities Building, 22 Main Street North, Hutchinson, Minnesota 55350. Members present: H. P. Quade, President Clinton Tracy, vice President H. Filk Members absent: None Documents attached: Minutes of said meeting (pages): 1 Notice of sale of $2,000,000 Light and Power Plant Revenue Bonds, as presented to and approved by the Commission at said meeting. I, the undersigned, being the duly qualified and acting record- ing officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the ori- ginal records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 10th day of May , 1971. ure R_ Young, Seargtary Name an Title Hutchinson Utilities Commission Extract of Minutes of Meeting May to , 1971 The Secretary presented a proposed form for publication of notice of sale of $2,000,000 Light and Power Plant Revenue Bonds to be dated June 1, 1971, proposed to be issued and made payable from the net revenues of the electric utility on a parity with the outstanding revenue bonds dated June 1, 1967, for the purpose of financing the program of improvements and extensions now In progress. Commissioner Clinton Tracy introduced the following resolution and moved its adoption: Cit of BE 1T RESOLVED by the Hutchinson Utilities Commission of theMutchinson, Minnesota, that the form of notice of sale of $2,_00,000 Light and Power Plant Revenue Bonds of the Commission to be dated June 1, 1971, be approved as presented to the Commis- sion this date; that each and all of the terms and provisions set forth in the notice of sale are approved as the terms and condi- tions upon which the bonds shall be offered; that the Secretary Is directed to cause the notice to be published in the official newspaper of the City and in a .financial newspaper as required by law; and that the Commission shall meet at the time and place set forth in the notice for the purpose of considering all sealed bids received for the purchase of the bonds and of taking such other and further action with reference thereto as shall then be deemed necessary and expedient. -n ZD;p 0 C 0 0 cn0mo Zn tD 07 .� c m c0 0 A. 0 000 c CD O �' =o o cn o 3 o �(D wQ rn I N ' O N o� rn o rn Passed May to , 1971. President Attest: _ - i� W-cretaffy The motion for the adoption of the foregoing resolution was duly seconded by Commissioner H. W. Filk , and upon vote being taken thereon, the following members voted in favor thereof: H. P. Quade C. Tracy H. W. Filk and the following voted against the same: none whereupon the resolution was declared duly passed and adopted. ■ NOTICE OF SALE $2,000,000 Hutchinson Utilities Commission of the City of Hutchinson, Minnesota Light and Power Plant Revenue Bonds The Hutchinson Utilities Commission of the City of Hutchinson, Minnesota, will meet at the Utilities Building, 22 Main Street North, Hutchinson, Minnesota 55350, on Tuesday, the lst day of , June , 1971 at two P. M. Central Daylight Saving Time, to receive, open and consider sealed bids for and award the sale of $2,000,000 Light and Power Plant Revenue Bonds of the Commission to be dated June 1, 1971, and to be payable solely from and as a first lien upon the net revenues received in excess of current, reasonable and necessary costs of operation and maintenance of the light and power plant and system owned and operated by the City of Hutchinson under the supervision and control of the Commission, on a parity with its outstanding bonds dated June 1, 1967. The bonds will bear interest at a rate or rates to be designated by the successful bidder, subject to the limitations stated below, payable December 1, 1971, and semiannually there- after on June 1 and December 1 in each year, and will mature serially on December 1 in the following respective years and amounts:. 1972 $185,000 1976 $235,000 1973 195,000 1977 280,000 1974 205,000 1978 3303000 1975 220,000 1979 350,000 The bonds maturing in the years 1978 and 1979 will each be subject to redemption and prepayment at the option of the Commission on December 1, 1977, and any interest payment date thereafter, in inverse numerical order, at par plus accrued interest. Principal and interest will be made payable at a suitable bank designated by the successful bidder, subject to approval of the Commission. The bonds will be printed in the denomination of $5,000 each and will be delivered to the purchaser within 40 days after the date of sale, without cost, together with the approving legal opinion of Dorsey, Marquart, Windhorst, West & Halladay,of Minneapolis, Minnesota, and a certificate of the Commission stating that there is then no litigation threatened or pending affecting the validity of the bonds. -1- we- -. v 1 1 Sealed bids may be mailed or delivered to the undersigned Secretary at the office of the Commission and must be received before the time of said meeting and accompanied by'a cashier's or certified check or bank draft in an amount not less than $40,000, payable to the City Treasurer, Hutchinson, Minnesota, to be re- tained by the Commission as liquidated damages if the bid is ac- cepted and the bidder should fail to comply therewith. The bonds of each maturity are to bear interest at a single uniform rate, represented by a single set of interest coupons, not exceeding the rate specified for any subsequent maturity. No oral bid and no bid of less than $1,980,000, plus accrued interest on the entire principal amount to the date of delivery, will be con- sidered. The most favorable bid will be considered to be that offering the lowest net interest cost, determined by computing the dollar amount of interest payable to the stated maturities of the bonds, deducting any premium and adding any discount. The Commission reserves the right to reject any and all bids, to waive any informality in any bid, and to adjourn the sale if deemed expedient. Dated Maylp , 1971. R. E. YOUNG Secretary Hutchinson Hutchinson, -2- Utilities Commission Minnesota I Resolution 115 As per resolution #1000 adopted 11 -29 -06 Numbering resolutions from 1936 — 2006 For search purposes only RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF LIGHT AND POWER PLANT REVENUE BONDS BE IT RESOLVED by the Hutchinson Utilities Commission of the City of Hutchinson, Minnesota, as follows: Section 1. Recitals. 1.01 Under and pursuant to the provisions of Chapter 17 of the Home Rule Charter of the City of Hutchinson, adopted June 1, 1913, as amended September 26, 1936, and April 26, 1955, this Commission is granted and exercises full, absolute and exclusive control of and power over the City light and power plant and all parts, attachments and appurtenances thereto as well as all appa- ratus and material of every kind and description used or to be used in operating the light and power plant, including authority to enter into contracts and to sue and be sued in its own name, to regulate the distribution, use and sale of light and power from the plant within and without the City limits, to collect for services, and to fix the rates for all sales and services for public and private use, subject to the veto power of the City Council in the case of changes in rates, and authority to extend, add to, change and modify the light and power system and do any and all things deemed necessary and proper for the operation of the plant, and power to pledge the net earnings of the plant, after providing for payment of all operating and maintenance charges, to secure payment for equipment purchased for the plant and system and of interest and principal requirements of obliga- tions created for such purpose, and the light and power plant is operated, and the revenues thereof are administered and accounted for, separately from all other utilities of the City, except that the plant is required to pay the reasonable cost and value of services furnished by other utilities necessary to the operation of the light and power system. 1.02 There are now outstanding $420,000 Light and Power Plant Revenue Bonds dated June 1, 1967, maturing serially in the amount of $35,000 on December 1 and $35,000 on June 1 in each year from and including December 1, 1971, to and including June 1, 1977, which bonds were issued under authority of a resolution adopted July 10, 1962, entitled "Resolution Authorizing the Issu- ance and Sale of Light and Power Plant Revenue Bonds ", and a fur- ther resolution adopted June 9, 1967. 1.03 The plant is presently in need of improvement by the installation and construction of additional equipment and build- ing modifications and additions necessary to supply increasing -1- demand from industrial and residential users of electricity, the general nature and presently estimated cost of the. items required being as follows: Base Price Contract or Estimate R. L. Vogt, Inc., Building Contract, addition to plant $ 1850670.00 Frederickson +s, Inc... well and pump contracts 37,950.00 Goodin Company., pump contract 80037.75 General Electric Company, combined cycle gas- turbine generating unit, 15,000 KW 2,6910000.00 $2v922#657.75 Engineering and incidental costs 209000.00 Bond discount 20,000 Total estimated cost $299629657.75 1.04 That plans and specifications have been prepared by consulting engineers and approved by the Commission, and con- tracts for the installation and construction of substantially all of the project have been entered into after advertisement for bids as required by law, and it is estimated that the sum of $2,000,000 should be borrowed by the issuance of the revenue bonds herein authorized, to pay the cost of the project over and above that which may be paid from surplus net revenues on hand and expected to be received during the current year. 1.05 In Section 6.032 of the authorizing resolution dated July 10, 1962, the Commission reserved the right to issue addi- tional revenue bonds to finance capital improvement's or replace- ments of utility properties under certain conditions therein stated, which conditions now exist as follows: (a) The average of the annual net revenues received from the operation of the light and power plant system during the two fiscal years immediately preceding the issuance of the bonds herein authorized is computed as follows: -2- Fiscal year ended March 31: 1970 1971 Total Gross revenues 1.499,518 11650,353 3,$149,871 Operation and maintenance 1,681,364 expenses (excluding depre- ciation and interest) 7689958 912,406 Net revenues 730,560 737,947 19469,507 Average annual net revenues 734,253 (b) The total amount of principal and interest to become due and payable in any fiscal year of the term of the outstanding bonds dated June 1, 1967, on those bonds and on the ac t�i0off.1 0 bonds herein authorized, will not exceed the sum of $ payable in the fiscal year ending March 31, 1977, which sum is exceeded one and one - quarter times by the average annual net reve- nues of the fiscal years ended March 31, 1970 and 1971. (c) There is now on hand a reserve balance in the Revenue Bond Account in the Light and Power Fund, not less than the maxi- mum amount of principal and interest payable on the outstanding bonds in any future year, over and above sums required for payment of current principal and interest, and provision is made for the increase of this reserve balance within four years from the date of this resolution, to the maximum amount of principal and inter- est thereafter payable from the account in any fiscal year, which amount is computed to be $3660625.00in the fiscal year ending March 31, 1980. 1.06 It is therefore determined that the bonds to be issued pursuant to this resolution shall be payable from the Revenue Bond Account of the Light and Power Fund, and from the net revenues appropriated thereto, on a parity as to both principal and inter- est with the Light and Power Plant Revenue Bonds dated June 1, 1967, without preference or priority of any bond over any other except as expressly provided with respect to all bonds payable from the fund under the provisions of the authorizing resolution dated July 10, 1962. The bonds have been duly advertised at pub- lic sale and the most favorable bid receiv d i t at Barney & Co., Inc . of �Gew orkh, New York > > and associates named therein, to purchase them at a price of $ 1,988,510.70 plus accrued interest on the principal amount to the date of delivery, and subject*to the further terms and con- ditions stated in this resolution. The proposal is accepted, and the President and Secretary of the Commission are directed to execute on the part of the Commission a contract for the sale of the bonds in accordance therewith. Section 2. Forms. 2.01 Bonds. The bonds shall be printed in substantially the following form, with appropriate insertions of serial numbers and interest rates: —3— _low— I , UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF McLEOD CITY OF HUTCHINSON HUTCHINSON UTILITIES COMMISSION LIGHT AND POWER PLANT REVENUE BOND No. $5,000 KNOW ALL MEN BY THESE.PRESENTS that the City of Hutchin- son, a duly organized municipal corporation of McLeod County, Minnesota, by the Hutchinson Utilities Commission, acknowledges itself to be specially indebted and for value received promises to pay to bearer or, if transfer of ownership of the principal amount of this bond has been registered in the manner described below, to the registered owner hereof, but only out of the Reve- nue Bond Account of its Light and Power Fund, the sum of FIVE THOUSAND DOLLARS on the lst day of December, 19 , or, if this bond is prepayable as stated below, on an earlier date on which it shall have been .duly called for redemption, and to pay interest thereon, from the date hereof until said principal sum is paid, or until this bond, if prepayable, has been duly called for redemption, at the rate of per cent ( %)(4.5302) per annum, payable December 1, 1971, and semiannually thereafter on June 1 and December 1 in each year, interest to maturity being payable in accordance with and upon presentation and surrender of the interest coupons appurtenant hereto. Both principal and in- terest are payable at , in , or at the office of such successor paying agent, if any, as may be desig- nated by published notice in conformity with the resolution authorizing this bond, in any coin or currency of the United States of America which on the respective payment dates is legal tender for public and private debts. This bond is one of an issue in the aggregate principal amount of $2,000,000, all of like date and tenor except as to serial number, interest rate, maturity date and redemption privi- lege, and is issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota thereunto enabling and an authorizing resolution dated June 1 , 1971, duly adopted by the unanimous vote of the Hutchinson Utilities Commission of the City of Hutchinson, for the purpose of paying a portion of the cost of the installation of equipment and the construction of buildings and additions for the municipal light and power plant, required to furnish electricity sufficient to meet the immediate demand therefor within the corporate limits of the City, and is payable solely from and as a first lien and charge upon the net revenues to be derived from the operation of the light and power plant, in excess of current, reasonable and necessary costs of the operation and maintenance thereof, on a parity with the. Light and Power Plant Revenue Bonds dated June 1, 1967, which net revenues have been pledged and appropriated to the Revenue Bond Account to the extent required for the payment of principal and interest on the bonds when due and for the creation and mainte- nance in that account of an additional reserve in a sum at all times equal to the maximum amount of such principal and interest to become due in any subsequent fiscal year. Bonds of this issue maturing in the years 1972 through 1977 are not subject to redemption before maturity, but those maturing in the years 1978 and 1979 are subject to redemption and prepayment at the option of the Commission on December 1, 1977, and on any interest payment date thereafter, at a price of par plus accrued interest, and in inverse order of their serial numbers. Not less than thirty days before the date fixed for the redemption of any of the bonds, the Secretary will cause notice stating the amount, the serial numbers and the maturities of the bonds called for redemption to be published in a financial periodical in a Minnesota city of the first class or its metropolitan area, and also to be mailed to the owner of each bond registered as to principal and to the bank at which princi- pal and interest are then payable, but published notice shall be effective without mailing. The transfer of ownership of the principal amount hereof may be registered by the bearer on the books of the Commission by presenting this bond to the Secretary, who will note the date of registration and the name of the transferee in the registra- tion blank on the reverse side hereof. Thereafter this bond may be transferred to a bona fide purchaser only by delivery with an assignment duly executed by the registered owner or his agent, and the Commission may treat the registered owner as the-person exclusively entitled to exercise all the rights and powers of an owner until this bond is presented with such assignment for regis- tration of transfer, accompanied by assurance of the nature pro- vided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted hereon by the Secretary. Such transfer may be to bearer, and thereby the transferability of this bond by delivery shall be restored, but the bond may again and from time to time be registered in the name of a holder or to bearer as before. Notwithstanding the registration of this bond as to principal, the interest coupons appurtenant hereto shall always continue to be payable to bearer and transferable by delivery. IT IS CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the home rule charter and ordinances and -5- resolutions of the City of Hutchinson to exist, to happen and to be performed precedent to and in the issuance of this bond, in order to make it a valid and binding special obligation of the City in accordance with its terms, do exist, have happened and have been performed in regular and due form, time and manner as so required; that in and by the authorizing resolution the Hutchinson Utilities Commission, on behalf of the City of Hutchin- son, has validly made and entered into additional covenants and agreements for the security of each holder of this bond, which will be fully and promptly performed by the Commission and each of its officers and agents concerned therewith, including a cove- nant that the Commission has established rates and charges for all services, products and by- products of its light and power plant which are. estimated to be sufficient, and will revise said rates and charges, subject to concurrence of the City Council, whenever and as often as required to assure that the same will be sufficient, for the payment of all costs of operation and maintenance as incurred and for the production of net revenues adequate to pay the principal and interest on all bonds of this issue when due and to create and maintain said reserve; that no additional bonds or other obligations will be made payable in future from said net revenues on a parity herewith, except as expressly permitted in the authorizing resolution; and that the issuance of this bond did not cause either the special or gen- eral indebtedness of the City to exceed any constitutional or statutory limitation. IN WITNESS WHEREOF the City of Hutchinson, McLeod County, Minnesota, by the Hutchinson Utilities Commission, has caused this bond and the interest coupons appurtenant hereto and the certificate appearing on the reverse side hereof to be signed by the President of the Commission and attested by the Secretary, each of said signatures being a printed, engraved or lithographed facsimile except for the signature of one of said officers manu- ally subscribed on the face of this bond, and has caused this bond to be dated as of June 1, 1971. (H. P. Quade. ) President of Hutchinson Utilities Commission Attest: 4�z Sec T ary 2.02 Interest Coupons. Interest coupons shall be printed and attached to each bond, numbered serially and representing the amount of each interest payment due thereon to maturity, in substantially the following form: 10 1 No. $ On the lst day of December (June), 19 , unless the bond described below is subject to and is called for earlier redemp- tion, the Hutchinson Utilities Commission of the City of Hutchin- son, McLeod County, Minnesota, promises to pay to bearer out of the Revenue Bond Account of its Light and Power Fund at , in the amount stated hereon in lawful money of the United States of America for interest then due on its Light and Power Plant Revenue Bond dated June 1, 1971, No. (Facsimile signature) (Facsimile signature) Secretary President of Hutchinson Utilities Commission 2.03 Legal Opinion. The following certificate shall be printed on the reverse side of each bond, following a full copy of the text of the legal opinion given at the time of delivery: We certify that the above is a full, true and correct copy of the legal opinion rendered by bond counsel on the issue of bonds of the Hutchinson Utilities Commission of the City of Hutchinson which includes the within bond, dated as of the date of delivery of and payment for the bonds. (Facsimile signature) (Facsimile signature) Secretary President of Hutchinson Utilities Commission 2.04 Registration Endorsement. The following provisions per- mitting registration of transfer of ownership of principal shall be printed on the reverse side of each bond: NO WRITING HEREON EXCEPT BY THE SECRETARY OF THE COMMISSION The transfer of ownership of the principal amount of the within bond to the registered owner last noted below.has been registered on the books of the Hutchinson Utilities Commission of the City of Hutchinson, McLeod County, Minnesota: Date Registered Owner -7- Signature of Secretary Section 3. Terms, Execution and Delivery. 3.01 Maturities, Numbers and Interest Rates. The $2,000,000 Light and Power Plant Revenue Bonds dated June 1, 19715 to be is- sued pursuant to this resolution shall be'numbered and shall ma- ture in order of serial numbers on December 1 in the years and amounts as follows, and shall bear interest at the annual rates stated opposite their maturity years and serial numbers, respec- tively, payable December 1, 1971, and semiannually thereafter on June 1 and December 1 in each year: Maturity Serial Interest (December 1) Amount Numbers Rate 1972 $ 185,000 1- 37 1973 195,000 38- 76 4.00% 1974 205,000 77 -117 1975 220,000 118 -161 1976 235,000 162 -208 1977 2801000 209 -264 4.40% 1978 330,000 265 -330 4.60% 1979 350,000 331 -400 4.75% Total $2,000,000 3.02 Redemption Before Maturity. None of the bonds maturing in the years 1972 through 1977 shall be subject to redemption be- fore maturity. The bonds maturing in the years 1978 and 1979 shall be subject to redemption and prepayment at the option of the Commission on December 1, 1977, and on any interest payment date thereafter, at a price of par plus accrued interest and in inverse order of their serial numbers. Not less than thirty days before the date fixed for prepayment and redemption of any bond, the Secretary of the Commission shall cause notice thereof to be published in a financial newspaper in a Minnesota city of the first class or its metropolitan area, stating the redemption date, the series designation, and the serial number or other de- scription sufficient to identify the bond or bonds to be redeemed on that date. Notice shall also be mailed to the bank at which the principal and interest are then payable, and to the holder of each bond which, at the time it is called for redemption, is registered in the name of a holder, at his address shown on the Commission's books in the office of the Secretary. Failure to give any such mailed notice shall not invalidate any call for redemption. Notice of the call of any bond for redemption hav- ing been published as herein provided, and funds sufficient for the payment thereof with accrued interest having been deposited with the paying agent on or before the redemption date, interest on such bond shall cease on said date and its appurtenant interest coupons maturing subsequently shall become void, and the holder shall have no further rights with respect thereto or under this resolution except to receive the redemption price so deposited. 3.03 Registration of Transfer. Transfer of ownership of the principal amount, only, of each bond may be registered on the books and records of the Commission in the office of the Secretary of the Commission, with the force and effect stated in the form of bond set forth in Section 2. The Secretary shall maintain a register in which he shall enter, upon receipt of a request for registration of transfer, the date and the name and address of the transferee, corresponding to the endorsement of registration on the bond. Upon written advice of a change in the address of the registered owner, the Secretary shall likewise enter the new address in the bond register. All expense of registration shall be paid from the Revenue Bond Account of the Light and Power Fund. The coupons appurtenant to each bond shall always be payable to bearer and transferable by delivery. 3.04 Paying Agent. The principal of and interest on the bonds shall be payable at First National Bank (Coupon Department) inMinneapolis, Minnesota. , and the reasonable and customary charges of the paying agent shall be paid as incurred, as a cost of operation of the light and power plant. Upon merger or consolidation of the paying agent, if the resulting corporation is a bank or trust company authorized by law to con- duct such business, such corporation shall be authorized to act as successor paying agent. Upon the resignation of any paying agent, which shall be communicated in writing to the Commission not less than ninety days before it shall become effective, the Commission reserves the power to appoint a successor paying agent. No resignation and no appointment of a successor paying agent shall become effective until the date specified in a notice of the resignation and appointment which the Commission shall cause to be published in a financial newspaper in a Minnesota city of the first class or its metropolitan area, not less than thirty days before said effective date. 3.05 Registration of Bonds. Before the bonds are delivered the Secretary shall file with the County Auditor of McLeod County, Minnesota, a certified copy of this resolution, together with such other information as the County Auditor may desire concerning the bonds, and shall obtain from the Auditor a certificate that the issue has been entered on his register. 3.06 Execution and Delivery. The bonds and interest coupons and the certificate on the reverse side of each bond shall be signed in behalf of the Commission by the President, and his sig- nature shall be attested by that of the Secretary. The signature of one officer shall be manually subscribed on the face of each bond, but the other signatures may be printed, engraved or litho- graphed facsimiles. The City Treasurer shall deliver the bonds, Wa when executed, or cause them to be delivered, to the purchasers upon receipt of the purchase price provided in the contract of sale, and the purchasers shall not be obligated to see to the application of the purchase price, but the accrued interest and premium, if any, shall be credited to the Revenue Bond Account of the Light and Power Fund and the remainder of the proceeds shall be credited to the Capital Expenditure Account of said fund and expended and accounted for as provided in said resolution dated July 10, 1962. 3.07 Authentication of Bond Transcript. The Secretary of the Commission and the City Treasurer are directed to furnish to the purchasers of the bonds certified copies of proceedings and information in their official records relevant to the author- ization and issuance of the bonds, and such certificates and affidavits as to other matters appearing in their official records or otherwise known to them as may be reasonably required to evi- dence the validity and security of the bonds, and all such certi- fied copies, certificates and affidavits, including any hereto- fore furnished, shall constitute representations and recitals of the Commission as to the correctness of all facts stated therein and the completion of all proceedings stated therein to have been taken. 3.08 Security Provisions. The Commission and all of its officers and employees shall continue to observe and perform all of the terms, provisions and covenants contained in its previous bond resolutions, for the security of the outstanding bonds and of those issued hereunder, as set forth in Sections 4 and 5 be- low. Section 4. Funds and Accounts. 4.01 Light and Power Fund. For the proper administration of the moneys to be borrowed on the bonds and of the revenues pledged to the payment thereof, the City shall continue to maintain its Light and Power Fund in accordance with the provisions of Chapter 17 of the City Charter as amended, and shall maintain financial records of all receipts and disbursements relating to the light and power plant and system, herein referred to as the "utility ", in which records there shall be established and maintained sub- divisions of that fund for the purposes and in the amounts as described below. 4.02 Capital Expenditure Account. Into this account shall be paid all money borrowed hereunder and from it there shall be paid all, but only, those items of capital cost necessarily in- curred and to be incurred in the completion of the project de- scribed in Section 1, in accordance with the plans and specifica- tions heretofore approved. The additional funds required to complete this project, and any other funds required for acquisi- tion of property or capital improvements to the utility, or for -10- the payment of obligations heretofore or hereafter incurred for such property or improvements, other than bonds payable from the Revenue Bond Account described in Section 4.04 below, shall be supplied from surplus net revenues now on hand and to be received in the Surplus Account described in Section 4.05. Money shall be withdrawn from the Capital Expenditure Account only upon verified orders or warrants drawn on the City Treasurer and signed by the President and Secretary of this Commission. 4:03 Operation and Maintenance Account. To this account shall be charged and from.it shall be paid all, but only, those items of disbursements which, under accepted accounting practices, constitute normal, reasonable and current costs of operation and maintenance of the utility: Upon each distribution of moneys received as gross revenues of said utility there shall be credited to--this account such portion thereof as is needed to make current and prompt payment of all costs, theretofore incurred, of opera= tion and maintenance as above defined, plus a reasonable excess to be held as a reserve for emergencies. All gross revenues from time to time received in excess of the amounts hereby appropriated to the Operation and Maintenance Account are herein termed 'net revenues": 4:04 Revenue Bond Account. To this account shall be credited the accrued interest paid by the purchaser of said bonds, and the amounts of net revenues herein appropriated and pledged, and from it shall be paid the principal of and interest on the outstanding Light and Power Plant Revenue Bonds and those issued hereunder and any additional bonds authorized in Section 5 to be made pay= able from the net revenues on a parity therewith, as such princi- pal and interest become due, the excess from time to time in the account to be held as a reserve for the further security of said payments: There is hereby appropriated to the Revenue Bond Ac= count out of the net revenues a sum to be credited thereto in each month; equal to not less than one - twelfth of the principal and interest to become due and payable from the account within the then next succeeding twelve months; and also such additional sum each month as may be needed to increase the reserve balance within four years, and thereafter to maintain it, by the transfer of additional net revenues whenever necessary, in an amount at all times equal to the maximum amount of principal and interest to become due and payable from the account in any subsequent fiscal year. This reserve shall be_used only if and to the ex= tent necessary to pay principal or interest due for which other funds are insufficient and; if ever so used, shall be restored Prom the next net revenues thereafter. 4:05 Surplus Account. To this account shall be credited as received all net revenues over and above the amounts appro= priated to the Revenue Bond Account. Money from time to time in the Surplus Account may by resolution of the Commission be =11= used for the repair, replacement, improvement or extension of the utility, or may be transferred to the General Fund of the City if directed by the Commission, and used for any proper municipal purpose authorized by the City Council, but all moneys on hand in this account at any time shall be available and shall be used to the full extent necessary to restore any deficiency in the Revenue Bond Account. Section 5. Additional Covenants. 5.01 Records and Audits. The Commission will cause proper and adequate books of account to be kept, reflecting all income and expenditures relating to the utility and its operation, which books shall be open to inspection and copying at all reasonable times by the holder of any of the bonds or his agent or attorney, and will, without cost, furnish copies of any portions thereof reasonably requested by any bondholder. It will cause an annual statement of the income and expenses of the utility to be prepared within thirty days after the close of each fiscal year, and will cause the utility books and records to be audited annually by a certified public accountant, and.will furnish a copy of the state- ment and report of audit without cost to the purchaser of each issue of bonds, and will furnish a copy of the annual statement without cost to any bondholder requesting the same. 5.02 Rates and Charges. The Commission has established rates and charges for all services, facilities, products and by- products of the utility which are estimated to be sufficient to pay all costs of operation and maintenance of the utility as incurred and to produce net revenues adequate to meet all pay- ments of principal and interest on the bonds herein authorized and to create and maintain the reserve herein agreed, and will, subject to concurrence of the City Council, revise the same when- ever and as often as necessary for this purpose. 5.03 Additional Bonds. No additional bonds or other obliga- tions will be issued or incurred and made payable from or a charge upon the net revenues, except as follows: (a) Refunding revenue bonds may be issued if and to the extent necessary to pay a matured bond or bonds of the issues now outstanding which cannot be paid in full from net revenues then on hand and available therefor under the provisions of this resolution; but nothing herein shall require the holder of any bond to accept a refunding revenue bond in exchange therefor. (b) Additional revenue bonds may be issued to finance capital improvements or replacements of utility properties, if the average of the annual net revenues received during the two fiscal years immediately preceding such issuance shall have been not less than one and one - quarter times the largest amount of principal and interest to become due and payable in any subse- quent fiscal year of the term of the then outstanding bonds -12- "W_ . l payable from the Revenue Bond Account, on such bonds and on the additional bonds so issued, and if by the resolution authorizing such additional bonds the City shall provide for the increase of the bond reserve within a period not exceeding four years to an amount equal to the largest amount of principal and interest thereafter payable in any fiscal year from the Revenue Bond Ac- count. For the purpose of this paragraph (b), in the event of any change in rates and charges for utility service prior to the issuance of such additional bonds, the net revenues for any period prior to such change shall be deemed to be those which would have been received from the rates and charges in effect at the time of such issue, applied to the quantities of service actually furnished and deducting operation and maintenance charges actually incurred during the fiscal years involved. (c) Except as provided in paragraphs (a) and (b) above, any additional bonds or other obligations which are made payable from or a charge upon the net revenues will be expressly made so payable subject to the lien and charge thereon in favor of the bonds herein authorized. 5.04 Order of Payment. If moneys in the Revenue Bond Ac- count shall at any time be insufficient for the payment of prin- cipal and interest then due on the outstanding bonds payable from that account, and cannot be made sufficient by transfer of moneys from the Surplus Account, the available moneys shall be first applied to the pro rata payment of the interest then ac- crued on all such bonds, and the remainder shall be applied to the payment of principal in order of the maturity dates of said bonds, or, as between bonds having the same maturity date, in order of date of issue, or, as between bonds having the same issue and maturity dates, in order of serial numbers, lowest numbers first. 5.05 Continued Operation. As long as any of the bonds are outstanding it will continue its ownership and operation of said utility as a revenue- producing utility and convenience, and will not authorize or enfranchise the establishment or operation of any other utility providing services or commodities in competi- tion therewith, and will maintain the utility free from all liens on the physical properties thereof and in good and efficient operating condition. -13- 5.06 Sale of Assets. If any properties constituting capital assets of the utility shall be sold or disposed of, it shall be only at their fair market value, and the proceeds of such sale or disposition shall either be used to procure other capital assets or applied to pay principal of and interest on the bonds. No such sale or sales shall be made at times or prices such as to imperil the prompt and full payment of the bonds and interest thereon. -13- 5.07 Insurance and Bonds. It will procure and keep in force insurance on the utility properties protecting against loss or damage by fire, tornado, windstorm, flood and other causes cus- tomarily insured against for like properties, and insurance pro- tecting against liability of the City for injury to persons or property, due to any act or omission in operation of the utility, and will procure and keep in force suitable fidelity bonds cover- ing employees handling moneys of said utility, such policies and bonds to be given by insurers in good standing and in such amounts as the-Commission shall determine will be adequate to protect the City and the holders of revenue bonds issued hereunder against loss due to any such casualty; and in event of any such loss the proceeds shall be used to repair or restore the damage or to re- tire the bonds. 5.08 Deposit and Investment of Funds. It will cause all gross revenues derived from the sale and availability of elec- tricity and any and all other services, products and by- products of the light and power plant to be credited as received to the Light and Power Fund, and will furnish no free service, and will hold all such revenues on deposit in a duly qualified depositary bank or banks and secured as required by law; except that money held in the reserve agreed to be maintained in the Revenue Bond Account may be invested in general obligations of the United States Government, and money in the Surplus Account may be in- vested in any securities authorized by Minnesota Statutes, Sec- tions 475.56 and 475.66, or future acts amendatory thereof or supplemental thereto. 5.09 Enforcement of Covenants. Holders of 20% or more in aggregate principal amount of the bonds at any time outstanding may, either at law or in equity, by suit, action or other pro- ceedings, protect and enforce the rights of all holders- of bonds issued hereunder which are then outstanding, and enforce and com- pel the performance of any and all of the covenants and duties herein specified to be performed by the City and its officers and agents, including the fixing and maintaining of rates and charges and the proper segregation and use of the revenues de- rived therefrom. Attest: Secr ary — vresiaent or Hutchinson Utilities Commiss'on -14- OF SALE`, chi nson `Utilities the sty,'. of Hut- Affidavit of Publication will $ ,000,00, 'Light and Power- Plant 1 Revenue Bonds of the Commission to be dated June 1, 1971, and to be payable solely, from and as a first lien upon., the..net'revenues;,received in excess of current, reasonable and necessary costs of 'operation and maintenance of,the l,ight'and power plant and system owned and operated by the City of Hutchinson under the supervision and contltol of the Commission, on a parity with its outstanding bonds -dated June 1, _ '1967. The bonds will bear interest at a rate or rates to be designated,by.,the successful bidder, subject to the limitations stated 'below, payable December 1, 1971; and semiannually thereafter on June;l and December l in each year`"and will ' mature serially on December 1 in the following respective years and amounts: 1972 $185,000 ,1973 195,000 1974 205,000!•' 1975 220,000 1976 235,000 1977 280,000 I 1978 330,000 1979 350,000 "The bonds maturing in the years 1 ?78 and 1979 will , each be subject to redemption and prepayment at the option of the Commission on 'December 1, 1977, and any interest - �, payment,date thereafter, in inverse niAmerical order, at par plus ac- crued interest. Principal and in- terest will be made payable at a suitable bank designated by the. successful bidder, - subject to ap- proval of the Commission. The bonds will be printed in the denomination of $5,000 each and will be,delivered to the purchaser within 40'days after the date of sale, without cost, together , with the approving legal''opinion of, Dorsey, Marquart, Windhorst, West & Haliaday, of Minneapolis, Min: nesota, and a certificate of the Commission stating _ that there is then no litigation threatened: or pending affecting the validity of the bonds. .Sealed bids may be mailed or delivered to the undersigned Secretary at the office of the Commission and must be received before the time of said meeting and accompanied by a cashier's or certified check or bank draft in an amount; not . less than 840,000 payable, -to -,the :City Treasurer, gutchinson, Minnesota, to be retained by?,' he Commission as liquidated 'damages if the bid is accepted and the bidder should fail to comply therewith. The bonds of each ,maturityareto' bear interest at a ,,singl.e,.un.iform_.rate,- r- epresented° by `a singleset'of interest coupons, not. exceeding the rate specified for .. any.. subsequent maturity. No oral bidand'no bid of less than $1,980,000, plusfaccrued:.interest on the entire principal amount to the date of j deliver.y,.will be considered. The" ,most favorable bid will" be .con sidered to be that'offering the lowest net interest cost,' determined by computing the dollar amount of interest payable to the stated maturities of the bonds, deducting l any, premium and adding any discount: The Commission reserves the right reject any and all bids, to waive.' any informality in any bid, and, ;to adjourn 'the; sale if deemed expedient. ' Dated May 10, 1971. R:; E. Young Secretary lutchinson Utilities Commission '"Hutchinson, Minnesota 40,42 STATE OF MINNESOTA,) COUNTY OF McLEOD, ) ss, L. D. Mills, being duly sworn, on oath says he is and during all the times herein stated has been the publisher and printer of the newspaper known as The Hutchinson Leader and has full knowledge of the facts herein stated as follows: (1) Said newspaper is painted in the English language in newspaper format and in column and sheet form equivalent in printed space to at least 900 square inches. (2) Said newspaper is a semi - weekly and is distributed at least twice each week. (3) Said newspaper has 25% of its news columns devoted to news of local interest to the community which it purports to serve and does not wholly duplicate any other publication and is not made up entirely of patents, plate matter and advertisements. (4) Said newspaper is circulated in and near the municipality which it purports to serve, has at least 500 copies regularly delivered to paying subscribers, has an average of at least 75% of its total circulation currently paid or no more than three months in arrears and has entry as second class matter in its local post- office. (5) Said newspaper purports to serve the City of Hutchinson in the County of McLeod and it had its known office of issue in the City of Hutchinson, in said county, established and open during its regular business hours for the gathering of news, sale of adver- tisements and sale of subscriptions and maintained by the managing officer of said newspaper or persons in its employ and subject to his direction and control during all such regular business hours and at which said newspaper is printed. (6) Said newspaper files a copy of each issue immediately with the State Historical Society. (7) Said newspaper has complied with all the foregoing conditions for at least two years preceding the day or dates of publication mentioned below. (8) Said newspaper has filed with the Secretary of State of Minnesota prior to January 1, 1968, and each January 1 thereafter an affidavit in the form prescribed by the Secretary of State and signed by the managing officer of said newspaper and sworn to before a notary public stating that the newspaper is a legal newspaper. He further states on oath that the printed... N.o.t.1Ce of. Sa.l@ .. .................................................................... ............................... hereto attached as a part hereof was cut from the columns of said newspaper, and was printed and published therein in the English language, once each week, for... � � ..................... successive weeks; that it was first so published on.. ri��dneyda� !........ the .... 19th.... day of. .�1�4 r• •••.••••••••••••••••19.. 7 1 and was thereafter printed and published on every Wednesday ,.......to and including the ....2.6t!h..dav of...l�T,a3t.... .. ..19.71 and that the following is a printed copy of the lower case alphabet Prom A to 2;, both inclusive, and is hereby acknowledged as being the size and kind of type used in the composition and publication of said notice,. to wit: (Notarial SP31) abcdef ghi jklmnopgrstuvwxyz abcdefghijklmnopgrstuvwxyz L--, W .................. Subscribed and sworn to before me this?l.a of.. ��f.. ... ..19/ i/�r� %. Ja t Cumming Notarjy Public, McLeod County, Minneso / My r. mmission Expires October 27, 1971 LEGAL NOTICE NOTICE OF SALE $2,000,000 HUTCHINSON UTILITIES COMMISSION OF THE CITY OF HUTCHINSON, MINNESOTA LIGHT AND POWER PLANT REVENUE BONDS The Hutchinson Utilities Commission of the City of Hutchinson, Minnesota, will meet at the Utilities' Building, ,22 Main Street North, Hutch- inson, MinnesotaZ5350,1)n,.: at 2:00; rp MPtV- a`P'I6a�fl»hg,%abing Time, to receive: ope d.?cohsjder aled p¢.ids for and award the salt�yof,$2,00Pfa(RyL(9ht and Power Plant 4ev0rifie Solids bf.fire Corhinisslon to be dated June 1'; 1971 4hdlfo zbe. pa yable solely from and as a first lien upon the net revenues received in excess of current reasonable and necessary costs of operat%'Wand;- maintenance Of the light and power. plentn.¢system owned and operated by the 6V o Hutchinson under the supervision and control If W6 Commission, on a parity with its outstanding bonds dated June 1, 1967. �t The bonds will -bear, interest, at a rate or rates to be designated ' 'IiY he successful bidder, subject to the limitations stated below, payable December 1, 1971, and .Semiannually Thereafter on June 1 and December I in each year, and will mature serially on December i in the following respective years and amounts: 1972 $185,000 1976 ;235,000 1973 195,000 1977 `280,000 1974 205,0_0_,,; 1978 330,000 1975 220;000 1979 350,000 The bonds maturinlhe� years 1978 and 1979 will each be subject T &tredemption and prepay- ment at the optlon" of ttte;,Commission on De- cember 1, 1977, and any,]h`terest payment date thereafter, in invel'`3e'`,MPf.ft5j .order, at par Plus accrued int "efeatai PllifiCiba, and interest "ill be made pQydpjg sUILJ1 ,.bank desig- ted by the sin�ce� s,,,ii�� hi e� ect To ap- rval of the Co"ffi'inf1 n , �1�ie�'50cls will be —kited in the del�omj etJoitof}{$5�000 each and I be delivered. "i purchaser within 40 days after The d t f s e, yvr� 6 p t cost, to- gether with the apa�it'I?ptnton of Dor- sey, Marquart, WintlFipt tip Wr- ,My,Halladay, of Minneapolis, Minnesgt T certificate of the e. Commission stating'xl Is then no liti- gatjan threatened 0 r ffecting the vali- dity of the bonds. ., r¢; Sealed bids may'Ibe+4mlt �br' delivered to the undersigned Secr fa fl'atfhe 'office of the Commission and MU § fib: ceWed before the time of said "Tee, nag' -aiid ccompanjed by a cashier's or tertifi'ed 'Ehe an draft. in an amount not less than L$40,000, payable' to` the City Treasurer, Hutchinson, MinnesotakYollbe re. tained Wthe Cpmm4sidn as liquidated damages if the bid is accepted °and the bidder should fail to comply therewith. The bonds of each maturity are to bear: interest at a single uni- form rate, represented by a single set of in. terest coupons, not exceeding the rate specified for any subsequent 'maturity. No oral bid and no bid of less than $1,980,000, plus accrued interest on The entire 'principal amount to the date of delivery, will be considered. The most favorable bid will be considered to be that of- fering the lowest net Interest cost, determined by computing The dollar amount of interest Pay- able to the stated maturities of the bonds, de- ducting any premium and adding any discount. The Commission reserves the right to reject any and all bids, to waive any Informality in any bid, and to adjourn the sale if deemed expedient. Dated May 10, 1971. A. E. YOUNG ;; Secretary Hutchinson Utilities Commission Hutchinson, Minnesota Published in Commercial West May 22, 1971 STATE OF MINNESOTA County of Hennepin AFFIDAVIT OF PUBLICATION •tsis4iri1-.1- - A=9oo .... :........... being duly sworn, on oath says she Is and during all the times herein stated has been the clerk of the publisher and printer of the newspaper known as Commercial West and has full knowledge of the facts herein stated as follows: (1) Said newspaper Is printed in the English language in newspaper format In column and sheet form equivalent In printed space to at least 900 square inches. (2) Said newspaper is a weekly and is distributed at least once each week. (3) Said newspaper has 50% of its news columns devoted to news of local interest to the Community which It purports to serve and does not wholly duplicate any other publication and Is not made up entirely of patents, plate matter and advertisements. (4) Said newspaper is circulated In and near the municipality which It purports to serve, has 500 copies regularly delivered to paying subscribers, has an average of at least 75% of Its total circulation currently paid or no more than three months In arrears and has entry as second-class matter In Its local post -office. (5) Said newspaper has Its known office of Issue in the City which It purports to serve, namely the City of Minneapolis in the County of Hennepin, which office Is established and ,open during Its regular business hours for the gathering of news, sale of advertisements and sale of subscriptions and maintained by the managing officer of said newspaper or persons In Its employ and subject to his discretion and control during all such regular business hours and devoted exclusively during such regular business hours to the business of the newspaper and business related thereto. (6) Said newspaper files a copy of each issue Immediately with the State Mstorical Society. (7) Said newspaper has complied with all the foregoing conditions for at least two years preceding the date hereof. (8) Said newspaper has filed with the Secretary of State of Minnesota an affidavit in the form prescribed by the Secretary of State and signed by the managing officer of said newspaper and sworn to Before a notary public stating that the newspaper is a legal newspaper. She further states on oath that said Commercial West is a weekly periodical published in Minneapolls, a city of the first class, and which circulates throughout the state and furnishes financial news as part of its service. She further states on oath that the printed ..... }n,.�,,,, hereto attached as a part hereof was cut from the c 71 bbF� —ia and waa printW end published therein In the English language, M S bubo on Saturday the .y'�„, n&y of r .............. 19.71 I 'K an la � nI"o is a �p n co y ewer case a a nom o � nc us 1 ; ands WOW acknowledged as being the size and kind of type used in the composition and publication of said notice, to wit: a bcdefg h i j kl m n o p q rstuvwxyz abcdefgh i jklmnopgrstuvwxyz Subscribed and sworn to before me this of ., ................... it. ... . . .. . . .. .. .............. ....... ary Public, Hennepin County, Minnesota My Commission Expires ...................... 19...... PRISCiLLA D. LARSEN nDotal?' Public, Henn^ p^ ntt. Y Commission Expires Gci. q, 1974, 1 1 CERTIFICATION OF MINUTES RELATING TO $220000000 Light and Power Plant Revenuer Bonds Issuer: Hutchinson Utilities Commission of the City of Hutchinson, Minnesota. Governing body: Commissioners. Kind, date, time and place of meeting: Special Meeting, June 1, 19710 at 2:00 o'clock P.M., at the Utilities Building, 22 Main Street North, Hutchinson, Minnesota 55350. Members present: H. P. Quade Clinton Tracy H. F &1k Members absent: Norse Documents attached: Minutes of said meeting (pages): 1 through 1T RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF LIGHT AND POWER PLANT REVENUE BONDS $2900090010 I2 A CHINS 0 N Yom: COMMISSION CITY OF HUTCHIN SON MINNESOTA Light and Power Plant Revenue Bonds The Hutchinson Utilities Commission; of, the City of Hutchinson, Minne- sota, will meet at the Utilities Building, 22 Main Street North, Hutchinson, _ Minnesota 55350, on Tuesday, JUNE 11; 1971 at 2:00 P.M., Central Daylight Saving Time, to receive, open and consider sealed bids for and award the sale of $2,000,000 ;Light and Power Plant Revenue Bonds of the Commission to be dated June 1, 1971, and to be pay- able solely from and as a first lien upon the net revenues received in excess of current, reasonable and necessary costs of operation and maintenance of the light and power plant and system owned and operated by the 'City of Hutchinson under the supervision and control of the Commission, on a parity with its outstanding bonds dated June 1, 1967. The bonds will bear interest at a rate or rates to be designated by the successful 'bidder, subject to the limitations stated below, payable December 1, 1971, and semiannually thereafter on June 11 and December 1 in each year, a! ' will mature serially on December 1 in the following respective years ar tmounts: 1972..........$185,000 1976..........$235,000 1973.......... 195,000 1977.......... 280,000 1974.......... 205;000 1978.......... 330,000 1975.......... 220,000 1979.......... 350,000 The bonds maturing in the years 1978 and 1979 will each be subject to redemp- tion and prepayment at the option of the Commission on December 1, J1977, and any interest payment date thereafter, in inverse numerical order, at par plus accrued interest. Principal and interest will be made payable at a suit- able bank designated by the successful bidder, subject to approval of the Commission. The bonds will be printed in the denomination of '$5,000, each and will be delivered to the ,purchaser within 40 days after the date of sale, without cost, together with the approving legal opinion of Dorsey, Marquart, Windhorst,_West & Halladay, of Minneapolis, Minnesota, and a certificate of the Commission stating that there is then no 'litigation threatened or- pending affecting the validity of the bonds. Sealed ;bids may be mailed or delivered to the undersigned Secretary at the office of the Commission and must be received before the time of said meeting and accompanied by a cashier's or certified check or bank draft in an amount not less than $40,000, payable to the City Treasurer, Hutchinson, Minnesota, to be retained by the Commission as liquidated damages if the bid is accepted and the bidder should fail to comply therewith. The bonds of each maturity are to bear interest at a single uniform rate, represented by a single set of interest coupons, not exceeding the rate specified for any subsequent maturity. No oral bid and no bid of less than $1,980,000, plus accrued interest on the entire principal amount to the date of delivery, will considered. The most favorable bid will be considered to be that offering s lowest net interest cost, determined by computing the dollar amount of _erest payable to the stated maturities of the bonds, deducting any premium and adding any discount. The Commission reserves the right to reject any and all bids, to waive any informality in any bid, and to adjourn the sale if deemed expedient. Dated May 10, 1971. R. E. YOUNG, .Secretary, Hutchinson Utilities Commission, Hutchinson, Minnesota. City and County of New York, s.s. :- HENRmTA RwERs, being duly sworn, says that she is the Advertising Clerk of THE BOND BUYER, a daily and weekly newspaper printed and published at 77 Water Street in the City of New York, County of New York, State of New York; and the notice, of which the annexed is a printed copy, was regularly published in said THE DAILY BOND BUYER on MAY 2 4 1971 Advertising Clerk Subscribed and sworn to before me this �- .... day of ...../ _J... 1971 1 avnc. ........ ANN T. PERRONE Notary Public, State of New York No. 24- 8331675 Qualified in Sings County Commission expires March 30, 1972 1 L� C', The Secretary presented affidavits showing publication in the official newspaper and in the Commercial West of notice of sale of $2,000,000 Light and Power Plant Revenue Bonds of the Commission, bids for which were to be received at this meeting in accordance with the resolution of the Commission dated May 10, 1971. Said affidavits were examined, found satisfactory and ordered placed on file. The Secretary then presented to the Commission three (3) sealed bids received prior to the time of this meeting for the purchase of the bonds, which were then opened, publicly read and tabulated as follows: (1) Smith, Barney & Co., Inc. Loewi & C okpany, Inc . Coupons: 4.00,% 1972 -1975 4.20% 1976 4.409 1977 4.60 1978 4.79% 1979 Discount: $11,489.30 Net Interest Cost: $499,916.80 Effective rate: 4.53028f (2) Dain, Kalman & Quail, Inc. Allison- Williams Company Paine, Webber, Jackson & Curtis, Inc. Piper, Jaffray & Hopwood, Inc* Shearson, Hammill & Co., Inc* Juran & Moody, Inc. E. J. Prescott & Company First National Bank, Hutchinson, Minn. Effective rate: 4.719 (3) John Nuveen & Co., Inc. Becker & Cownte, Inc. Channer Newman Securities Co. Robert S. C. Petersen The Milwaukee Corp. White - Phillips Company, Inc. Dee and Neab Securities Co. Van Kampen, Wauteelek & Brown, Inc. Effective rate: 4.73,% -1- Member Clinton Tracy introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF LIGHT AND POWER PLANT REVENUE BONDS BE IT RESOLVED by the Hutchinson Utilities Commission of the City of Hutchinson, Minnesota, as follows: Section 1. Recitals. 1.01 Under and pursuant to the provisions of Chapter 17 of the Home Rule Charter of the City of Hutchinson, adopted June 1, 1913, as amended September 26, 1936, and April 26, 1955, this Commission is granted and exercises full, absolute and exclusive control of and power over the City light and power plant and all parts, attachments and appurtenances thereto as well as all appa- ratus and material of every kind and description used or to be used in operating the light and power plant, including authority to enter into contracts and to sue and be sued in its own name, to regulate the distribution, use and sale of light and power from the plant within and without the City limits, to collect for services, and to fix the rates for all sales and services for public and private use, subject to the veto power of the City Council in the case of changes in rates, and authority to extend, add to, change and modify the light and power system and do any and all things deemed necessary and proper for the operation of the plant, and power to pledge the net earnings of the plant, after providing for payment of all operating and maintenance charges, to secure payment for equipment purchased for the plant and system and of interest and principal requirements of obliga- tions created for such purpose, and the light and power plant is operated, and the revenues thereof are administered and accounted for, separately from all other utilities of the City, except that the plant is required to pay the reasonable cost and value of services furnished by other utilities necessary to the operation of the light and power system. 1.02 There are now outstanding $420,000 Light and Power Plant Revenue Bonds dated June 1, 1967, maturing serially in the amount of $35,000 on December 1 and $35,000 on June 1 in each year from and including December 1, 1971, to and including June 1, 1977, which bonds were issued under authority of a resolution adopted July 10, 1962, entitled "Resolution Authorizing the Issu- ance and Sale of Light and Power Plant Revenue Bonds ", and a fur- ther resolution adopted June 9, 1967. 1.03 The plant is presently in need of improvement by the installation and construction of additional equipment and build- ing modifications and additions necessary to supply increasing -3- demand from industrial and residential users of electricity, the general nature and presently estimated cost of the items required being as follows: Base Price Contract or Estimate R. L. Vogt, Inc., Building Contract, addition to plant $ 185,670.00 Frederickson's, Inc., well and pump contracts 37,950.00 Goodin Co., pump contract 81037.75 General Electric Company, combined cycle gas - turbine generating unit, 15,000 KW 2,691,000.00 $2,922,657.75 Engineering and incidental costs 20,000.00 Bond discount 20.000.00 Total estimated cost $2,962,657.75 1.04 That plans and specifications have been prepared by consulting engineers and approved by the Commission, and con- tracts for the installation and construction of substantially all of the project have been entered into after advertisement for bids as required by law, and it is estimated that the sum of $2,000,000 should be borrowed by the issuance of the revenue bonds herein authorized, to pay the cost of the project over and above that which may be paid from surplus net revenues on hand and expected to be received during the current year. 1.05 In Section 6.032 of the authorizing resolution dated July 10, 1962, the Commission reserved the right to issue addi- tional revenue bonds to finance capital improvements or replace- ments of utility properties under certain conditions therein stated, which conditions now exist as follows: (a) The average of the annual net revenues received from the operation of the light and power plant system during the two fiscal years immediately preceding the issuance of the bonds herein authorized is computed as follows. -4- FJ Fiscal year ended March 31: 1970 1971 Total Gross revenues Operation and maintenance expenses (excluding depre- ciation and interest) Net revenues Average annual net revenues $1,499,518 $1,650,353 $3,149,871 768,958 912,406 1 681,364 730,560 737,94-7 8,507 $ 734,253 (b) The total amount of principal and interest to become due and payable in any fiscal year of the term of the outstanding bonds dated June 1, 1967, on those bonds and on the additional bonds herein authorized, will not exceed the sum of $ $62,057.00 payable in the fiscal year ending March 31, 1977, which sum is exceeded one and one - quarter times by the average annual net reve- nues of the fiscal years ended March 31, 1970 and 1971. (c) There is now on hand a reserve balance in the Revenue Bond Account in the Light and Power Fund, not less than the maxi- mum amount of principal and interest payable on the outstanding bonds in any future year, over and above sums required for payment of current principal and interest, and provision is made for the increase of this reserve balance within four years from the date of this resolution, to the maximum amount of principal and inter- est thereafter payable from the account in any fiscal year, which amount is computed to be $366,625.00in the fiscal year ending March 31, 1980. 1.06 It is therefore determined that the bonds to be issued pursuant to this resolution shall be,,.,-payable from the Revenue Bond Account of the Light and Pbwer,Fund;.'and from the net revenues Appropriated thereto, on a parity as to both principal and inter- est with the Light and Power Plant Revenue Bonds dated June 1, 1967, without preference or priority of any bond over any other except as expressly provided with respect to all bonds payable from the fund under the provisions of the authorizing resolution dated July 10, 1962. The bonds have been duly advertised at pub- lic sale and the most favorable bid received is that of Smith, Barney & Co., Inc. , of New York New. York, ' and associates named therein, to purchase them at 'a price o $1,988 510.70 plus accrued interest on the principal amount to the date of delivery, and subject to the further terms and con- ditions stated in this resolution. The proposal is accepted, and the President and Secretary of the Commission are directed to execute on the part of the Commission a contract for the sale of the bonds in accordance therewith. Section 2. Forms. 2.01 Bonds. The bonds shall be printed in substantially the following form, with appropriate insertions of serial numbers and interest rates: -5- P UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF McLEOD CITY OF HUTCHINSON HUTCHINSON UTILITIES COMMISSION LIGHT AND POWER PLANT REVENUE BOND No. $5,000 KNOW ALL MEN BY THESE PRESENTS that the City of Hutchin- son, a duly organized municipal corporation of McLeod County, Minnesota, by the Hutchinson Utilities Commission, acknowledges itself to be specially indebted and for value received promises to pay to bearer or, if transfer of ownership of the principal amount of this bond has been registered in the manner described below, to the registered owner hereof, but only out of the Reve- nue Bond Account of its Light and Power Fund, the sum of FIVE THOUSAND DOLLARS on the lst day of December, 19 , or, if this bond is prepayable as stated below, on an earlier date on which it shall have been duly called for redemption, and to pay interest thereon, from the date hereof until said principal sum is paid, or until this bond, if prepayable, has been duly called for redemption, at the rate of I per cent ( %)(4.5302) per annum, payable December 1, 1971, and semiannually thereafter on June 1 and December 1 in each year, interest to maturity being payable in accordance with and upon presentation and surrender of the interest coupons appurtenant hereto. Both principal and in- terest are payable at , in , or at the office of such successor paying agent, if any, as may be desig- nated by published notice in conformity with the resolution authorizing this bond, in any coin or currency of the United States of America which on the respective payment dates is legal tender for public and private debts. This bond is one of an issue in the aggregate principal amount of $2,000,000, all of like date and tenor except as to serial number, interest rate, maturity date and redemption privi- lege, and is issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota thereunto enabling and an authorizing resolution dated June 1, 1971, duly adopted by the unanimous vote of the Hutchinson Utilities Commission of the City of Hutchinson, for the purpose of paying a portion of the cost of the installation of equipment and the construction of buildings and additions for the municipal light and power plant, required to furnish electricity sufficient to meet the M immediate demand therefor within the corporate limits of the City, and is payable solely from and as a first lien and charge upon the net revenues to be derived from the operation of the light and power plant, in excess of current, reasonable and necessary costs of the operation and maintenance thereof, on a parity with the. Light and Power Plant Revenue Bonds dated June 1, 1967, which net revenues have been pledged and appropriated to the Revenue Bond Account to the extent required for the payment of principal and interest on the bonds when due and for the creation and mainte- nance in that account of an additional reserve in a sum at all times equal to the maximum amount of such principal and interest to become due in any subsequent fiscal year. Bonds of this issue maturing in the years 1972 through 1977 are not subject to redemption before maturity, but those maturing in the years 1978 and 1979 are subject to redemption and prepayment at the option of the Commission on December 1, 1977, and on any interest payment date thereafter, at a price of par plus accrued interest, and in inverse order of their serial numbers. Not less than thirty days before the date fixed for the redemption of any of the bonds, the Secretary will cause notice stating the amount, the serial numbers and the maturities of the bonds called for redemption to be published in a financial periodical in a Minnesota city of the first class or its metropolitan area, and also to be mailed to the owner of each bond registered as to principal and to the bank at which princi- pal and interest are then payable, but published notice shall be effective without mailing. The transfer of ownership of the principal amount hereof may be registered by the bearer on the books of the Commission by presenting this bond to the Secretary, who will note the date of registration and the name of the transferee in the registra- tion blank on the reverse side hereof. Thereafter this bond may be transferred to a bona fide purchaser only by delivery with an assignment duly executed by the registered owner or his agent, and the Commission may treat the registered owner as the person exclusively entitled to exercise all the rights and powers of an owner until this bond is presented with such assignment for regis- tration of transfer, accompanied by assurance of the nature pro- vided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted hereon by the Secretary. Such transfer may be to bearer, and thereby the transferability of this bond by delivery shall be restored, but the bond may again and from time to time be registered in the name of a holder or to bearer as before. Notwithstanding the registration of this bond as to principal, the interest coupons appurtenant hereto shall always continue to be payable to bearer and transferable by delivery. IT IS CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the home rule charter and ordinances and -7- resolutions of the City of Hutchinson to exist, to happen and to be performed precedent to and in the issuance of this bond, in order to make it a valid and binding special obligation of the City in accordance with its terms, do exist, have happened and have been performed in regular and due form, time and manner as so required; that in and by the authorizing resolution the Hutchinson Utilities Commission, on behalf of the City of Hutchin- son, has validly made and entered into additional covenants and agreements for the security of each holder of this bond, which will be fully and promptly performed by the Commission and each of its officers and agents concerned therewith, including a cove- nant that the Commission has established rates and charges for all services, products and by- products of its light and power plant which are estimated to be sufficient, and will revise said rates and charges, subject to concurrence of the City Council, whenever and as often as required to assure that the same will be sufficient, for the payment of all costs of operation and maintenance as incurred and for the production of net revenues adequate to pay the principal and interest on all bonds of this issue when due and to create and maintain said reserve; that no additional bonds or other obligations will be made payable in future from said net revenues on a parity herewith, except as expressly permitted in the authorizing resolution; and that the issuance of this bond did not cause either the special or gen- eral indebtedness of the City to exceed any constitutional or statutory limitation. IN WITNESS WHEREOF the City of Hutchinson, McLeod County, Minnesota, by the Hutchinson Utilities Commission, has caused this bond and the interest coupons appurtenant hereto and the certificate appearing on the reverse side hereof to be signed by the President of the Commission and attested by the Secretary, each of said signatures being a printed, engraved or lithographed facsimile except for the signature of one of said officers manu- ally subscribed on the face of this bond, and has caused this bond to be dated as of June 1, 1971. (H. P. Quads) President of Hutchinson Utilities Commission Attest: (R. E. Young) Secretary 2.02 Interest Coupons. Interest coupons shall be printed and attached to each bond, numbered serially and representing the amount of each interest payment due thereon to maturity, in substantially the following form: 1 1 No. On the 1st day of December (June), 19 , unless the bond described below is subject to and is called for earlier redemp- tion, the Hutchinson Utilities Commission of the City of Hutchin- son, McLeod County, Minnesota, promises to pay to bearer out of the Revenue Bond Account of its Light and Power Fund at , in the amount stated hereon in lawful money of the United States of America for interest then due on its Light and Power Plant Revenue Bond dated June 1, 1971, No. (Facsimile signature) (Facsimile signature) Secretary President of Hutchinson Utilities Commission 2.03 Legal Opinion. The following certificate shall be printed on the reverse side of each bond, following a full copy of the text of the legal opinion given at the time of delivery: We certify that the above is a full, true and correct copy of the legal opinion rendered by bond counsel on the issue of bonds of the Hutchinson Utilities Commission of the City of Hutchinson which includes the within bond, dated as of the date of delivery of and payment for the bonds. (Facsimile signature) (Facsimile signature) Secretary President of Hutchinson Utilities Commission 2.04 Registration Endorsement. The following provisions per- mitting registration of transfer of ownership of principal shall be printed on the reverse side of each bond: . NO WRITING HEREON EXCEPT BY THE SECRETARY OF THE COMMISSION The transfer of ownership of the principal amount of the within bond to the registered owner last noted below has been registered on the books of the Hutchinson Utilities Commission of the City of Hutchinson, McLeod County, Minnesota: Date Registered Owner Signature of Secretary -9- Section 3. Terms, Execution and Delivery. 3.01 Maturities, Numbers and Interest Rates. The $2,000,000 Light and Power Plant Revenue Bonds dated June 1, 1971, to be is- sued pursuant to this resolution shall be numbered and shall ma- ture in order of serial numbers on December 1 in the years and amounts as follows, and shall bear interest at the annual rates stated opposite their maturity years and serial numbers, respec- tively, payable December 1, 1971, and semiannually thereafter on June 1 and December 1 in each year: Maturity Serial Interest (December 1) Amount Numbers Rate 1972 $ 185,000 1- 37 1973 195,000 38- 76 4.M% 1974 205,000 77 -117 1975 220,000 118 -161 1976 235,000 162 -208 4.20% 1977 280,000 209 -264 4.40% 1978 3301000 265 -330 4.60% 1979 350,000 331 -400 4.75% Total $2,000,000 3.02 Redemption Before Maturity. None of the bonds maturing in the years 1972 through 1977 shall be subject to redemption be- fore maturity. The bonds maturing in the years 1978 and 1979 shall be subject to redemption and prepayment at the option of the Commission on December 1, 1977, and on any interest payment date thereafter, at a price of par plus accrued interest and in inverse order of their serial numbers. Not less than thirty days before the date fixed for prepayment and redemption of any bond, the Secretary of the Commission shall cause notice thereof to be published in a financial newspaper in a Minnesota city of the first class or its metropolitan area, stating the redemption date, the series designation, and the serial number or other de- scription sufficient to identify the bond or bonds to be redeemed on that date. Notice shall also be mailed to the bank at which the principal and interest are then payable, and to the holder of each bond which, at the time it is called for redemption, is registered in the name of a holder, at his address shown on the Commission's books in the office of the Secretary. Failure to give any such mailed notice shall not invalidate any call for redemption. Notice of the call of any bond for redemption hav- ing been published as herein provided, and funds sufficient for the payment thereof with accrued interest having been deposited with the paying agent on or before the redemption date, interest on such bond shall cease on said date and its appurtenant interest -10- coupons maturing subsequently shall become void, and the holder shall have no further rights with respect thereto or under this resolution except to receive the redemption price so deposited. 3.03 Registration of Transfer. Transfer of ownership of the principal amount, only, of each bond may be registered on the books and records of the Commission in the office of the Secretary of the Commission, with the force and effect stated in the form of bond set forth in Section 2. The Secretary shall maintain a register in which he shall enter, upon receipt of a request for registration of transfer, the date and the name and address of the transferee, corresponding to the endorsement of registration on the bond. Upon written advice of a change in the address of the registered owner, the Secretary shall likewise enter the new address in the bond register. All expense of registration shall be paid from the Revenue Bond Account of the Light and Power Fund. The coupons appurtenant to each bond shall always be payable to bearer and transferable by delivery. 3.04 Paying Agent. The principal of and interest on the bonds shall be payable at First National Bank, Coupon DeparatnRn�he in Minneapolis , Minnesota o-% reasonable and customary charges of the paying agent shall be paid as incurred, as a cost of operation of the light and power plant. Upon merger or consolidation of the paying agent, if the resulting corporation is a bank or trust company authorized by law to con- duct such business, such corporation shall be authorized to act as successor paying agent. Upon the resignation of any paying agent, which shall be communicated in writing to the Commission not less than ninety days before it shall become effective, the Commission reserves the power to appoint a successor paying agent. No resignation and no appointment of a successor paying agent shall become effective until the date specified in a notice of the resignation and appointment which the Commission shall cause to be published in a financial newspaper in a Minnesota city of the first class or its metropolitan area, not less than thirty days before said effective date. 3.05 Registration of Bonds. Before the bonds are delivered the Secretary shall file with the County Auditor of McLeod County, Minnesota, a certified copy of this resolution, together with such other information as the County Auditor may desire concerning the bonds, and shall obtain from the Auditor a certificate that the issue has been entered on his register. 3.06 Execution and Delivery. The bonds and interest coupons and the certificate on the reverse side of each bond shall be signed in behalf of the Commission by the President, and his sig- nature shall be attested by that of the Secretary. The signature of one officer shall be manually subscribed on the face of each bond, but the other signatures may be printed, engraved or litho- graphed facsimiles. The City Treasurer shall deliver the bonds, -11- when executed, or cause them to be delivered, to the purchasers upon receipt of the purchase price provided in the contract of sale, and the purchasers shall not be obligated to see to the application of the purchase price, but the accrued interest and premium, if any, shall be credited to the Revenue Bond Account of the Light and Power Fund and the remainder of the proceeds shall be credited to the Capital Expenditure Account of said fund and expended and accounted for as provided in said resolution dated July 10, 1962. 3.07 Authentication of Bond Transcript. The Secretary of the Commission and the City Treasurer are directed to furnish to the purchasers of the bonds certified copies of proceedings and information in their official records relevant to the author- ization and issuance of the bonds, and such certificates and affidavits as to other matters appearing in their official records or otherwise known to them as may be reasonably required to evi- dence the validity and security of the bonds, and all such certi- fied copies, certificates and affidavits, including any hereto- fore furnished, shall constitute representations and recitals of the Commission as to the correctness of all facts stated therein and the completion of all proceedings stated therein to have been taken. 3.08 Security Provisions. The Commission and all of its officers and employees shall continue to observe and perform all of the terms, provisions and covenants contained in its previous bond resolutions, for the security of the outstanding bonds and of those issued hereunder, as set forth in Sections 4 and 5 be- low. Section 4. Funds and Accounts. 4.01 Light and Power Fund. For the proper administration of the moneys to be borrowed on the bonds and of the revenues pledged to the payment thereof, the City shall continue to maintain its Light and Power Fund in accordance with the provisions of Chapter 17 of the City Charter as amended, and shall maintain financial records of all receipts and disbursements relating to the light and power plant and system, herein referred to as the "utility ", in which records there shall be established and maintained sub- divisions of that fund for the purposes and in the amounts as described below. 4.02 Capital Expenditure Account. Into this account shall be paid all money borrowed hereunder and from it there shall be paid all, but only, those items of capital cost necessarily in- curred and to be incurred in the completion of the project de- scribed in Section 1, in accordance with the plans and specifica- tions heretofore approved. The additional funds required to complete this project, and any other funds required for acquisi- tion of property or capital improvements to the utility, or for -12- the payment of obligations heretofore or hereafter incurred for such property or improvements, other than bonds payable from the Revenue Bond Account described in Section 4.04 below, shall be supplied from surplus net revenues now on hand and to be received in the Surplus Account described in Section 4.05. Money shall be withdrawn from the Capital Expenditure Account only upon verified orders or warrants drawn on the City Treasurer and signed by the President and Secretary of this Commission. 4.03 Operation and Maintenance Account. To this account shall be charged and from it shall be paid all, but only, those items of disbursements which, under accepted accounting practices, constitute normal, reasonable and current costs of operation and maintenance of the utility. Upon each distribution of moneys received as gross revenues of said utility there shall be credited to this account such portion thereof as is needed to make current and prompt payment of all costs, theretofore incurred, of opera- tion and maintenance as above defined, plus a reasonable excess to be held as a reserve for emergencies. All gross revenues from time to time received in excess of the amounts hereby appropriated to the Operation and Maintenance Account are herein termed "net revenues ". 4.04 Revenue Bond Account. To this account shall be credited the accrued interest paid by the purchaser of said bonds, and the amounts of net revenues herein appropriate- and pledged, and from it shall be paid the principal of and interest on the outstanding Light and Power Plant Revenue Bonds and those issued hereunder and any additional bonds authorized in Section 5 to be made pay - able from the net revenues on a parity therewith, as such princi- pal and interest become due, the excess from time to time in the account to be held as a reserve for the further security of said payments. There is hereby appropriated to the Revenue Bond Ac- count out of the net revenues a sum to be credited thereto in each month, equal to not less than one - twelfth of the principal and interest to become due and payable from the account within the then next succeeding twelve months; and also such additional sum each month as may be needed to increase the reserve balance within four years, and thereafter to maintain it, by the transfer of additional net revenues whenever necessary, in an amount at all times equal to the maximum amount of principal and interest to become due and payable from the account in any subsequent fiscal year. This reserve shall be used only if and to the ex- tent necessary to pay principal or interest due for which other funds are insufficient and, if ever so used, shall be restored from the next net revenues thereafter. 4.05 Surplus Account. To this account shall be credited as received all net revenues over and above the amounts appro- priated to the Revenue Bond Account. Money from time to time in the Surplus Account may by resolution of the Commission be -13- used for the repair, replacement, improvement or extension of the utility, or may be transferred to the General Fund of the City if directed by the Commission, and used for any proper municipal purpose authorized by the City Council, but all moneys on hand in this account at any time shall be available and shall be used to the full extent necessary to restore any deficiency in the Revenue Bond Account. Section 5. Additional Covenants 5.01 Records and Audits. The Commission will cause proper and adequate books of account to be kept, reflecting all income and expenditures relating to the utility and its operation,'which books shall be open to inspection and copying at all reasonable times by the holder of any of the bonds or his agent or attorney, and will, without cost, furnish copies of any portions thereof reasonably requested by any bondholder. It will cause an annual statement of the income and expenses of the utility to be prepared within thirty days after the close of each fiscal year, and will cause the utility books and records to be audited annually by a certified public accountant, and will furnish a copy of the state- ment and report of audit without cost to the purchaser of each issue of bonds, and will furnish a copy of the annual statement without cost to any bondholder requesting the same. 5.02 Rates and Charges. The Commission has established rates and charges for all services, facilities, products and by- products of the utility which are estimated to be sufficient to pay all costs of operation and maintenance of the utility as incurred and to produce net revenues adequate to meet all pay- ments of principal and interest on the bonds herein authorized and to create and maintain the reserve herein agreed, and will, subject to concurrence of the City Council, revise the same when- ever and as often as necessary for this purpose. 5.03 Additional Bonds. No additional bonds or other obliga- tions will be issued or incurred and made payable from or a charge upon the net revenues, except as follows: (a) Refunding revenue bonds may be issued if and to the extent necessary to pay a matured bond or bonds of the issues now outstanding which cannot be paid in full from net revenues then on hand and available therefor under the provisions of this resolution; but nothing herein shall require the holder of any bond to accept a refunding revenue bond in exchange therefor. (b) Additional revenue bonds may be issued to finance capital improvements or replacements of utility properties, if the average of the annual net revenues received during the two fiscal years immediately preceding such issuance shall have been not less than one and one - quarter times the largest amount of principal and interest to become due and payable in any subse- quent fiscal year of the term of the then outstanding bonds -14- payable from the Revenue Bond Account, on such bonds and on the additional bonds so issued, and if by the resolution authorizing such additional bonds the City shall provide for the increase of the bond reserve within a period not exceeding four years to an amount equal to the largest amount of principal and interest thereafter payable in any fiscal year from the Revenue Bond Ac- count. For the purpose of this paragraph (b), in the event of any change in rates and charges for utility service prior to the issuance of such additional bonds, the net revenues for any period prior to such change shall be deemed to be those which would have been received from the rates and charges in effect at the time of such issue, applied to the quantities of service actually furnished and deducting operation and maintenance charges actually incurred during the fiscal years involved. (c) Except as provided in paragraphs (a) and (b) above, any additional bonds or other obligations which are made payable from or a charge upon the net revenues will be expressly made so payable subject to the lien and charge thereon in favor of the bonds herein authorized. 5.04 Order of Payment. If moneys in the Revenue Bond Ac- count shall at any time be insufficient for the payment of prin- cipal and interest then due on the outstanding bonds payable from that account, and cannot be made sufficient by transfer of moneys from the Surplus Account, the available moneys shall be first applied to the pro rata payment of the interest then ac- crued on all such bonds, and the remainder shall be applied to the payment of principal in order of the maturity dates of said bonds, or, as between bonds having the same maturity date, in order of date of issue, or, as between bonds having the same issue and maturity dates, in order of serial numbers, lowest numbers first. 5.05 Continued Operation. As long as any of the bonds are outstanding it will continue its ownership and operation of said utility as a revenue - producing utility and convenience, and will not authorize or enfranchise the establishment or operation of any other utility providing services or commodities in competi- tion therewith, and will maintain the utility free from all liens on the physical properties thereof and in good and efficient operating condition. 5.06 Sale of Assets. If any properties constituting capital assets of the utility shall be sold or disposed of, it shall be only at their fair market value, and the proceeds of such sale or disposition shall either be used to procure other capital assets or applied to pay principal of and interest on the bonds. No such sale or sales shall be made at times or prices such as to imperil the prompt and full payment of the bonds and interest thereon. -15- 5.07 Insurance and Bonds. It will procure and keep in force insurance on the utility properties protecting against loss or causes cus- tomarily by fire, tornado, windstorm, flood and other _ insured against for like properties, and insurance or tecting against liability of the City for injury to pesons property, due to any act or omission in operation of the utility, and will procure and keep in force suitable fidelity , such policies and ing employees handling moneys of said utility, bonds to be given by standing and in such to protect the as the Commission shall determine issued City and the holders of revenueandin eventofeanynsuchaglosssthe loss due to any such casualty; proceeds shall be used to repair or restore the damage or to re tire the bonds. 5.08 De osit and Investment of Funds. It will caofeelec- gross revenues derived from the sale and availability by-products tricity and any and all other services, products and ed to t of the light and power plant to be credited as service, and Light and Power Fund,.and hold all such revenues on deposit in a duly qualified tdepositary bank or banks and secured as required by law; money held in the reserve agreed teneralaobligations ofe the vUnited ond Account may be invested in g be in- states Government, and money in the Surplus Account may Sec- vested in any securities authorized by Minnesota Statutes, Sec- tions 475.56 and 475.66, or future acts amendatory thereof or supplemental thereto. 5.09 Enforcement of Covenants. Holders of 20% or more in aggregate principal amount of the bonds at any time outstanding may, either at law or in equity, by suit, action or other pro- may, protect and enforce the rights of aa,ndhenforceoandocom- issued hereunder which are then outstanding, pel the performance of any and all of the covenants and duties herein specified to be performed by the City and its officers and agents, including the and the proper segregation rived therefrom. Attest: (R. E. Young) Secretary (H. P. Quade ) President of Hutchinson Utilities Commission -16- . l 1^ Fl The motion for the adoption of the foregoing resolution was duly seconded by Member H. W. Filk 3, and upon vote being taken thereon, the following voted in favor thereof: H. P. Quade H. W. Filk Clinton Tracy, and the following voted against the same: None whereupon the resolution was declared duly passed and adopted. -17- 9 Crane Supoly Company 488 154.3 Grinnell Company 154.3 Natural Gas Division Petty Cash Wilson Heating Supply 154.3ti; Cory Coffee Service Plan 926 Guy Speaker Company 154.3 Municipal Electric Plant Mrs. ]Fred Briggs 799.4 State Farm Mutual Auto Ins 130 State Farm Fire & Casualty Company 130 Paul Lemke & Son Postmaster Natural Gas Division Standard Gil Kemske Paper Company Standard Printing Company Nichols Machine Corporation D. G. Lietch Home Bakery Don's Skelly Service Standard Oil Graybar Electric Company Hutchinson Telephone Company National Auto Parts Company 0. A. Bre tike & Sons ?V.'unic ipal Water Department Hutc?iins on Medical Center Rockite Silo Inc Coast to Coast Store Northern States Supply American Linen Supply Company Moehring Motors Fischer's Bakery L & P Tire Supply- Company Nordberg Manufacturing Company Home Gas Company GTC Auto Parts Hutcl insar. Clearers Westinghouse Electric Supply Minnesota Wisconsin Truck Lines Nalco* Chemical Company H. D. Lee Company G. F. Nemitz Sons Leef Bros Inc Hutchinson Wholesale Supply Olin Corporation Zila Hardware Culligan Water Conditioning 269 781.2 729.1 777 759.1 793.4 781.3 123 #1 #2 415 799 .1. 759.2 729.1. 3.1 124 793.3 734.4 763 797 799.6 211 734.4 734.4 730.5 759.2 799.1. 763 123 #1 730.3 730.3 730.5 124 734.1 730.3 730.5 763 730.5 760 124 730.6 730.4 #2 #7 732 #'7 771 734.4 761 164 130.36 79.98 66.90 53.25 25.95 20.60 20.00 459.10 57.00 6,271.40 500.00 23,274-34 144.09 62 .25 149.73 323 .98 2 .39 56.82 2.00 2,,389 -eO 279.1.2 149.97 46.90 23-35 11.25 15.00 25.81 10.23 3.CO 22.41 47.05 53.04 23 .58 275.70 1.00 72.64 74.40 249.42 33,74 72.60 397.70 3.45 144.67 2.00 298.51 49.1.7 9.1.5 165 kddressograph- Multigraph Corporati on 781.4 12.64 Fountain Brand Products 799.1 86.80 Conney Products 771 44.73 Simonson Lumber 258 732 89.1.E Del Chemical Corporation 730. 3 171.92 Freder3_cksonts Inc 211 2.72 Hutel inson Leader 799.6 33.75 Burmeister Electric C ompa ny 771. 52.36 Municipal Electric Plant Petty Cash 175.76 Postmaster 793.1 174.20 Goodin Company 256 7v074.00 Young Radiator C ompany 734.1 #4 3,132 .00 Worthington Corporation 123 #3 #4 291.69.78 Standard Oil 729.1 2,401.23 Graybar Electric 6 ompar_y Burmeister Electric Company 124 211. 170.15 Burlington Nortrern Inc. 124 5.83 H. D. Lee Company 730.5 14.88 Sterling Electric Company 124 104.11 Boustad Electric & Manf. . C o-npany 270 9.64 Joselyn Mfg. & Supply Company 124 198.30 Duncan Electric C ompagj 124 133.28 Ditch -Witch of Minnesota 760 363.80 Minn. -4� isc . Truck Lines 760 6.36 Northland Electric Supply Company 124 270 96.74 Chicago & NW Railway 799.6 25.00 Olen Conductors 124 106.57 Crane Supply Company 734.4 89.52 Address ograph -Vi.lt igt-aph Corp. 781.4 21.14 Pedersen Company 258 2,925.00 Conney Products 761 33 .3 6 Luxor Lighting Products 730.3 79.48 Schlueter Ref. 217 128.00 Larson CoTm-anications 799.3 25 .711r, Standard Oil 729.1 800.41 Minnesota Wisc . Truck Lines 124 28.30 Sterling Electric 124 730.3 265.73 Paul Lemke & Sone 256 2 ,224.50 Mrs. John Kars t on 415 7.35 Peggy Fritz 415 6.06 Ben Jerabek 211 732 291.36 Juul Contracting Company 773 10.00 Fountain Brand Products 799.1. 94.30 S. A. Nies 730. 4 22-70 Minnesota Electric Supply 124 135.48 John Henry Foster Company 734.1 #7 32.28 Grams Insurance Agec ny 130 678.00 1 Robert Gutormson Louis Francis Robert Gutormson Louis Francis Municipal Electric Plant Federal Communications Kearney Inc City of Hutchinson Pederson Electric 166 Salary 147.34 Sala ry 71.10 Salary 157.56 Salary 126.92 Petty Cash 135.71 799.3 8100 212 105.15 200 19882.23 250.2 3,423.00 There being no further business, motion was made, seconded and unanimously carried to adourn the meeting. ATTEST L 1 R. E a g, e tart'. T;T Z wade , pre�s I �1 —ent