06-12-1957 HUCM(102 =) 107
Extract of Minutes of Meeting
of Utilities Commission
City of Hutchinson, McLeod County, Minnesota
June 12, 1957.
Pursuant to due call and notice thereof, a special meeting of the
Utilities Commission of the City of Hutchinson, Minnesota, was
held at the light plant office in said City on the 12th day of
June, 1957, at 9;00 o'clock A. M., all Commissioners being present
as follows;
President: Dr. R. I. Sheppard
Vice President;Dr. A. J. Thompson
Secretary; R. W. Dahl
The Secretary presented to the Board affidavits showing publication '
of the notice of sale of $400,000 Light and Power Plant Revenue
Bonds, bids for mh ich were to be considered at this time and place,
as directed by the resolution adopted May 28, 1957. Said affidavits
were examined and found satisfactory and directed to be placed on
file in the office of the Secretary.
The Secretary then reported that two sealed bids had been received
at his office prior to the time of this meeting, in accordance with
said notice, which bids were thereupon opened and publicly read and
considered and were found to be as follows;
Net
.Name and address of Bidder Int. Rate or Rates Premium Interest Cost
Bid #1.E. J. Prescott & Co.(14Sr.)
Kalman and Co.,. Inc.
Juran & Moody, Inc. 3.25
Allison - Williams Co.
Piper, Jaffray & Harwood
Mannheimer - Egan, Inc.
Harold E. Wood & Co.
Mpls. & St. Paul, Minn.
(One account - bidding as a
syndicate)
None 3.6239%
Net Interest;
$41,675.00
108 (103)
:Bid qualified as follows; "Plus separate and additional coupons, on all
bonds, at the annual rate of 1% for the period from Sept. 1, 1957, to
December 11 1958.
Net
Name & Address of Bidder Int. Rate or Rates Premium Interest Cost
Bid #2 Carleton D. Beh Company
Des Moines, Iowa 32/0 159.50 3.4861%
Net Interest;
40,090.50
The President of the Commission then suggested that prior to the
official award of sale of the bonds further consideration be given
to section 5.3 of the bond resolution ad6pted May 282 1957, which
section provides for the immediate setting aside and appropriation
of a bond reserve out of moneys now on hand; stating that on the
basis of the official audit report of the light and power plant
for the fiscal year ended March 31, 1957, and the records of the
Commission as to receipts and disbursements since said date, it
appears impractical to set aside immediately the sum specified
in the resolution and that it would be preferable, in oruer to
assure the maintenance of a sufficient cash balance in the
Operation and Maintenance Account, to provide for the accumulation
of the bond reserve,at the rate of approximately $2,000 per month
over a period of from two to three years, which arrangement would
provide adequate security for the bonds. The Secretary presented
to the Commission a copy of the information furnished to
prospective bidders, in which a tentative draft of the bond
resolution has been included, incorporating this change in section
5.3
Commissioner R. Dahl then introduced the following resolution
and moved its adoption:
RESOLUTION AIVIENDIPiG RESOLUTION OF MAY28,
1957, RELATING TO THE ISSUANCE AND SALE
OF FIGHT A 4D PO`NER PLAi,1T REVENIUE BONDS
Resolution 59
As per resolution #1000 adopted 11 -29 -06
Numbering resolutions from 1936 — 2006
For search purposes only
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(104) 109,
BE IT RESOLVED by the Utilities Commission of the City
of :Hutchinson, Minnesota, that section 5.3 of the resolution adopted
May 28, 1957; entitled '*Resolution Authorizing the Issuance and Sale
of Light and Power Plant Revenue Bonds" be and the same is hereby
amended to read as follows;
115.3 A Sinking; Fund Account, to which there shall
be credited the accrued interest paid by the purchaser '
of said bonds, and the amounts herein appropriated and
pledged to said account out of said net revenues, and
from which there shall be paid the principal of and
interest on said bonds and any additional bonds author-
ized in paragraph 5 to be made payable from said net
revenues on a parity herewith, as such principal and
interest become due, the excess from time to time in
said account being held as a reserve for the further
security of said payments. There shall be paid into
said account each month, out of said net revenues, a
sum equal to at least one - twelfth of the total amount
of principal and interest to become due on all bonds
payable from said account within the next succeeding
twelve months) period, plus the additional sum of at
least $2,000 each month until thereshall have been
accumulated in said account a reserve, over and above
sums required to pay current principal and interest,
which reserve shall thereafter be maintained by the
transfer of additonal net revenues whenever required,
in an amount equal to the maximum amount of principal
and interest to become due on all bonds payable from
said account in any subsequent fiscal year. Said
reserve shall be used only if and when necessary to
pay maturing, principal and interest for which other
moneys are not sufficient, and if ever so used, shall
be restored out of the next net revenues thereafter
received."
BE IT ii'URTHER RESOLVED that each and all of the remaining
terms and provisions of said resolution be and the same are hereby
approved, ratified and confirmed.
Attest; (R. W. Dahl)
The motion for the adoption of the foregoing resolution
was duly seconded by Commissioner A. J. Thompson, and upon vote
being taken thereon, the resolution was unanimously passed.
Commissioner A. J. Thompson then introduced the
following resolution and moved its adoption;
110 (105)
co RESOLUTION A47ARDING SALE OF
60 LIGHT AND POW_Ff PLANT REVENUE BONDS
N CV
BE IT RESOLVED b the Utilities Commission of the City
_0 M of Hutchinson, Minnesota, t at notice having been duly published
QM of the sale of w400p000, Lig ,t and Power Plant Revenue Bonds to
o be dated June 1, 1957, and bids received pursuant to said notice
cu
E >, having been duly opened and considered by this Commission, it is
02-2 hereby found and determined that the most favorable of such bids is
0 C 0 that of Carleton D. Beh Company, of DesMoines, Iowa, and associates named
a) therein, to purchasesaid bonds at a price of par and accrued interest
c:.2 o plus a premium of $159.50 and specifying that the bonds maturing in
°- the respective years set forth below shall bear interest at the annual
co ? CL rates set forth opposite said maturity years, from date of issue until
C con 0 paid;
0 0 .Li
cv Maturity Years Interest Rates
a N December 1,� 1J�5 - 70,000 3 ,
o C December 1, 1958 - 70,000 320
W Q Z LL December 1, 1959 70,000 3-�
December 1, 1960 - 970,000 3-
December 1, 1961 - $70,000 31%
December 1, 1962 - $50,000 3y%
which terms result in a total interest cost of $40,090; that said
bid shall be and is hereby accepted, and the President and Secretary
of this Commission are hereby authorized and directed to endorse
the acceptance of the City of Hutchinson upon two copies of said
bid gnd to retain the original in the files of said Secretary and
to return the duplicate to said bidder; that the good faith check
in the amount of $8,000 furnished by the successful bidder shall
be retained by the City Treasurer pending delivery of the bonds and
payment of the purchase price, and the checks of other bidders shall be
returned to them forthwith; that in accordance with the request of
said purchaser, the principal of and interest on said bonds shall be
payable at The Central National Bank & Tryst Company in Des Moines,
Iowa; and that the President and Secretary of this Commission and
the City Clerk are hereby authorized and directed to cause said
bonds to be prepared and executed, and the City Treasurer shall
then deliver the same to said purchaser, in the form and manner
prescribed in this resolution and in the resolution adopted May 28,
1957, as amended June 12, 1957, entitled "Resolution Authorizing
the Issuance and Sale of Light and Power Plant Revenue Bonds'.
(R. I. Sheppard.)
President of Utilities Commission
Attest; (R. W. Dahl)
Secretary of Utilities Commission.
The motion for the ad6ption of the foregoing; resolution
was duly seconded by Commissioner R. W. Dahl.
( 106 )
111
STATE OF MINNESOTA)
) ss.
County OF McLEOD )
I, the undersigned, being; the duly qualified and acting
Secretary of the Utilities Commission of the City of Hutchinson,
McLeod County, Minnesota, hereby certify that the attached and foregoing is
a full, true and correct transcript of the minutes of a meeting of
the Utilities Commission of said City duly called and held on the
date therein indicated, so far as such minutes relate to $4000000
Light and Power Plant Revenue Bonds of said City, and that the
resolutions included therein are full, true and correctcopies of
the originals thereof.
SITNESS MY hand officially as such Secretary this 12th
day of June, 1957.
R. W - Dahl
Secretary of Utilities Commission
SPECIAL MEETING
June 26, 1957.
A speclal meeting of Hutchinson Utilities Commission was held on
June 26, 1957, at the office of Dr. R. I. Sheppard.
All commissioners were present.
Bids were received from Rocket Transfer, Z. L. Murphy Trucking
Company and Henry Lambert Trucking Company to dismantle and
remove diesel Engine #1•
Rocket Transfer Company - -- 4,290.00( 190.00 extra to take
down the Silencer)
E. L. Murphy - -- 2,B04.25( Insurance included)
Henry Lambert Trucking; - -- Lambert will pay us $450.00
(Does not include removing
the Silencer . )
Motion made by Commissioner Thompson and seconded by Commissioner
Dahl to accept the bid of Henry Lambert Trucking Company as being
the best laid offered.
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