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11-24-1986 HUCMRegular Meeting November 24, 1986 Commissioner Daggett and Comnissioner Lyke were present; also present were Mgr. Hakel, Counsel Peterson, Brad Farnham of Juran & Moody, Don Swanson of Associated Consultants, Ivan Larson, Jane Hodgins, Hutchinson Leader staff writer and Sue Winter. President Daggett called the meeting to order at 1:00 p.m. The minutes of October 27, 1986 regular meeting and November 3, 1986 and November 11, 1986 special meetings were reviewed. A motion was made by Commissioner Lyke, seconded by Commissioner Daggett to accept the minutes as written. Motion was unanimously carried. The October payables for both entities were discussed. A motion was made by Commissioner Lyke, seconded by Conunissioner Daggett to accept the payables as presented. Motion was unanimously carried. At this time Commissioner Beatty arrived. Don Swanson of Associated Consultants presented the feasibility study for the Integrated Transmission Agreement. Counsel Peterson presented a resolution to accept the integrated transmission system contract and to execute letter of intent. RESOLUTION 14 - nZ>X O C: cn CD RESOLVED, that the proposed integrated transmission system u) 3 -p cn contract among United Power Association, Southern Minnesota m o- (D o Municipal Power Agency, and Hutchinson Utilities be and it �' (D CD o hereby is accepted, and that the President and the Secretary Ica o =3 be and they hereby are authorized to execute, in the name m and in behalf of the Hutchinson Utilities Commission, a o 0 contract substantially in the form submitted to this meeting, o h :3 and, CD Cn C) o cn o RESOLVED FURTHER, that proposed sales agreement between : o United Power Association and Hutchinson Utilities Commission Q (as outlined to this meeting) be and it hereby is accepted " -0 and the President and the Secretary be and they hereby are W authorized to execute, in the name and in behalf of the o� Hutchinson Utilities Commission, a contract substantially as outlined at this meeting; and, oN c0 C) , a� o M 0 C) c0 �o 0 N N I co C") � o -°° E cu o >, o 4- ° 0o c ° o U) N <U) Q 4— ° � ZA CM oa��� in L in ZZ E - 0 D ° 01-1QZIL RESOLVED FURTHER, that the proposed letter of agreement among United Power Association, Southern Minnesota Municipal Power Agency, and Hutchinson Utilities Commission (as submitted to this meeting) be and it hereby is accepted, and the President and the Secretary be and they hereby are authorized to execute, in the name and in behalf of the Hutchinson Utilities Commission, a contract substantially in the form submitted to this meeting. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to adopt resolution 14. Motion was unanimously carried. Brad Farnham of Juran & Moody reviewed Resolution Providing for Public Sale of $3,920,000 Electric Utility Revenue Bonds of 1986 (copy attached). A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to accept the above resolution (resolution 15). Motion was unanimously carried. Brad Farnham discussed defeasing Light and Power Plant Revenue bonds of 1976 prior to issuance of 1986 bonds. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to defease Revenue Bonds of 1976. Motion was unanimously carried. The 1987 electric and gas projected budgets were reviewed. Mgr. Hakel informed the Commission that Wally Hombach has contacted several contractors regarding refacing the front and south side (up to the garage) of the Center and resurfacing the Center parking lot. Mgr. Hakel was instructed to place $15,000 for refacing the Center and $20,000 for resurfacing the parking lot in 1987 budget. At this time "Butch" Wentworth was welcomed to the meeting. He discussed purchasing new equipment. After discussion, Mgr. Hakel was instructed to place in the 1987 budget an amount to purchase a trencher (electric dept.) and a trailer (gas dept.). Mgr. Hakel presented the October financial statements. A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to accept both statements. Motion was unanimously carried. Counsel Peterson presented the proposed settlement agreement between Hutchinson Utilities Commission and Rufus Alexander. RESOLUTION 16 RESOUVED, that the proposed Settlement Stipulation and Agreement between Hutchinson Utilities Commission and Rufus Alexander submitted to this meeting be and it hereby is accepted; and the Commissioners be and they hereby are authorized to execute, in the name and in behalf of Hutchinson Utililties Commission, the Settlement Stipulation and Agreement in the form submitted to this meeting. A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to accept the above resolution. Motion was unanimously carried. Manager's Report: 1. North Star Risk Services, a risk consultant, inspected Utility Center and cold storage warehouse. We are following his recommendations. 2. Resolution regarding donations will be presented at the next meeting. 3. Dean's Discount Foods has closed. The amount owing is approximately $9,000. Nate Smutka will set up a payment plan unless bankruptcy is filed. Old Business: None New Business: Mgr. Hakel presented Policy for Contractors. POLICY FOR CONTRACTORS Developments and Individual Lots No facilities shall be installed until development or lots are brought to grade. Building /site /lot plans shall include space for underground and surface mounted equipment needed by all utilities. Underground facilities shall be constructed to best serve the area from the plans as received. Developers that sub- divide or change lot lines, shall bear the cost of relocating installed facilities. Damage to existing facilities shall be the expense of the developer. A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to adopt the above policy. Motion was unanimously carried. Mgr. Hakel presented a vehicle policy. After discussion, Mgr. Hakel was instructed to contact other cities to see what their' policies are and to report back to the Commission. 3 Mgr. Hakel presented a winter payment and disconnect policy. This policy will be inserted with Utility statements mailed in December. Winter Payment and Disconnect Policy Hutchinson Utilities is not obligated to abide by the winter disconnect rules established by the Public Utilities Commission (no shut -offs between October 15 and April 15). However, Hutchinson Utilities will work with customers who are having problems paying their utility bills, to avoid a winter disconnect. To avoid a disconnect, customers must contact the Utilities' Collections and Metering Superintendent by the date indicated on the disconnect notice. Arrangements can then be made concerning the past due amount. Budget Plans or other arrangements are available. Low income customers can be referred to agencies which may be able to assist them in paying their utility bills. Hutchinson Utilities does not make a policy of disconnecting utilities in the cold weather months; but, if customers who receive disconnect notices do not contact the Utilities by the due date, they risk having their utilities disconnected regardless of the weather. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to adopt the above policy. Motion was unanimously carried. The December regular meeting will be held on December 31 at 9:00 a.m. The January regular meeting will be held on January 22 at 1:00 p.m. A meeting with staff personnel regarding the Hay Report will be held on December 2 at 7:00 a.m. The following are October payables: I , 4 SETTLEMENT STIPULATION AND AGREEMENT In Re the Matter of: Rufus Alexander, Employee and Hutchinson Utilities Commission, Employer The parties to this Agreement are RUFUS ALEXANDER (Employee) and the HUTCHINSON UTILITIES COb,24ISSION (Commission) . The Employee is represented by G. Barry Anderson of the law firm of ARNOLD & McDOWELL, 101 Park Place, Hutchinson, Minnesota. The Commission is represented by Richard Peterson, 116 Main South, Hutchinson, Minnesota. The Commission and the Employee have now agreed to settle certain outstanding differences between and this Settlement Stipulation and Agreement, along with attachments, if any, constitutes the terms of the Agreement between the parties. Based upon the foregoing, NOVI THEREFORE IT IS HEREBY STIPULATED AND AGREED: 1. That the Employee will, effective at 12:00 o'clock noon on September 22, 1986, begin a leave of absence from the Commission. During the period of his leave of absence, the Commission does not desire the Employee to undertake any duties with respect to the Commission and does not expect the Employee to engage in any duties unless subsequently agreed to by the parties. 2. The leave of absence referred to in paragraph one shall continue until March 1, 1988, at which time the Employee shall be considered fully retired. 3. That while the Employee is on leave of absence status he shall receive full compensation and fringe benefits previously available to him prior to his acceptance of a leave of absence including but not limited to the following: a. Commission contributions to the Employee's PERA account; b. The health insurance coverage currently in force for the Employee or such other equivalent coverage as might be selected by the Commission; C. The parties acknowledge that the Commission is currently paying the premium on a whole life insurance policy in- suring the life of the Employee. The Commission shall continue to pay the premium for that policy until the Employee's sixty -fifth (65th) birthday; d. Optometric expense reimbursement benefits, if any. 4. At the time of Employee's retirement on March 1, 1988, Employee shall be entitled to retain medical group insurance at his own expense pursuant to the procedure outlined by the Commission in its December 27, 1984, Minutes, a copy of which is attached hereto and marked as Exhibit "A ". 5. In consideration of all of the foregoing, the parties also stipulate and agree that they will enter into the Mutual Release which is attached hereto and marked as Exhibit "B ". IN WITNESS WHEREOF, the parties hereto have affixed their hands and seals this day of November, 1986.___, r= Rufds Alexander, - Employ HUTCHINSON UTILITIES COMMISSION By Its By -� It �' e By ----- ts v.-- i3prry an{aer on Attorney for R fus Alexander 101 Park Place Hutchinson, Mn. 55350 Telephone No. (612) 587 -7575 Attorney I.D. #196X Richard A. Peterson Attorney for Hutchinson Utilities Commission 116 Main South Hutchinson, Mn. 55350 Telephone No. (612) 587 -4620 The following motion was taken from the December 27, 1984 minutes: A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to extend to the Hutchinson Utilities retired employees the right to retain medical group insurance until the age of 70 years. The retired employee shall pay all premiums and deductibles. Hutchinson Utilities has the right to alter, change or discontinue any or all medical insurance that affects the retired employee with a 30 day notice. They also have the right to cancel the above insurance if there is a direct or indirect cost to the Utility Commission. Motion was unanimously carried. A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to amend the motion to the following: At no time will Hutchinson Utilities Commission allow more than ten (10) retired employees in its Medical Group Insurance; this benefit will be extended to those employees having ten (10) years of service with the Hutchinson Utilities Commission. Motion was unanimously carried. New Business: A local businessman inquired of Commissioner Beatty if the new underground service, recently installed in the alley west of Main Street, would be adequate to take care of future loads. Mgr. Alexander asked to give a report at the December meeting. The following are October payables: a r ** VERY IMPORTANT NOTICE ** GENERAL NOTIFICATION (COBRA) CONTINUATION COVERAGE A new Federal law has been enacted (Public Law 99 -272, Title X) (COBRA) requiring that most employers sponsoring group health plans offer employees and their families the opportunity for a temporary extension of health coverage (called "continuation coverage ") at group rates in certain instances where coverage under the plan would otherwise end. This notice is intended to inform you, in a summary fashion, of your rights and obligations under the continuation coverage provisions of the new law. (Both you and your spouse should take the time to read this notice carefully.) If you are covered by the Woodmen Accident and have a right to choose this continuation coverage if health coverage because of a reduction in your hours termination of your employment (for reasons other than your part). Life Health Plan you you lose your group of employment or the gross misconduct on If you are the spouse of an employee covered by the Woodmen Group Health Plan, you have the right to choose continuation coverage for yourself if you lose group health coverage under Woodmen's Group Health Plan for any of the following four reasons: (1) The death of your spouse; (2) A termination of your spouse's employment (for reasons other than gross misconduct) or reduction in your spouse's hours of employment; (3) Divorce or legal separation from your spouse; or (4) Your spouse becomes eligible for Medicare. In the case of a dependent child of an employee covered by the Woodmen Group Health Plan, he or she has the right to continuation coverage if group health coverage under Woodmen's Group Health Plan is lost for any of the following five reasons: (1) The death of a parent; mm (2) The termination of a parent's employment (for reasons other than gross misconduct) or reduction in a parent's hours of employment; (3) Parents' divorce or legal separation; (4) A parent becomes eligible for Medicare; or (5) The dependent ceases to be a "dependent child" under Woodmen's Group Health Plan. Under the new law, the employee or a family member has the responsibility to inform the Plan Administrator of a divorce, legal separation, or a child losing dependent status under the Woodmen Group Health Plan. The employer has the responsibility to notify the Plan Administrator of the employee's death, termination of employment or reduction in hours, or Medicare eligibility. When the Plan Administrator is notified that one of these events has happened, the Plan Administrator will in turn notify you that you have the right to choose continuation coverage. Under the new law, you have at least 60 days from the date you would lose coverage because of one of the events described above to inform the Plan Administrator that you want continuation coverage. If you do not choose continuation coverage, your group health insurance coverage will end. If you choose continuation coverage, your employer is required to give you coverage which, as of the time coverage is being provided, is identical to the coverage provided under the plan to similarly situated employees or family members. The new law requires that you be afforded the opportunity to maintain continuation coverage for 3 years unless you lost group health coverage because of a termination of employment or reduction in hours. In that case, the required continuation coverage period is 18 months. However, the new law also provides that your continuation coverage may be cut short for any of the following five reasons: (1) The employer no longer provides group health coverage to any of its employees; (2) The premium for your continuation coverage is not paid; (3) You become an employee covered under another group health plan; (4) You become eligible for Medicare; (5) You were divorced from a covered employee and sub- sequently remarry and are covered under your new spouse's group health plan. You do not have to show that you are insurable to choose continuation coverage. However, under the new law, you may have to pay all or part of the premium for your continuation coverage. The new law also says that, at the end of the 18 month or 3 year continuation coverage period, you may enroll in any individual conversion health plan provided under Woodmen's Group Health Plan. If you have any questions about the new law, please contact your employer or Woodmen Accident and Life Company at Box 82288, Lincoln, Nebraska 68501. Also, if you have changed marital status, or you or your spouse have changed addresses, please notify the Plan Administrator. HUTCHINSON UTILITIES ClOMMISSION iii �• �. , • . • a • � The Ccmpany's group health policy permits you to continue coverage upon yourself and any insured dependents until the age of 70 years. In order to continue such coverage, you must pay a monthly amount of $ which should be paid to at on or before the day of each month. The continued coverage is provided through the group policy and will be subject to the policy provisions. If the premium rate changes, you will be advised. Life insurance coverage on this policy dicontinues at retirement. uaL%a Employee Management MUTUAL RELEASE In Re the Matter of: Rufus Alexander, Employee and Hutchinson Utilities Commission, Employer - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - KNOW ALL MEN BY THESE PRESENTS, that the Employee above -named for good and valuable consideration, as more fully set out in the Settlement Stipulation and Agreement which is expressly made a part hereof, does for and in behalf of himself and his heirs, executors, administrators, successors and assigns, agree to and hereby does release, acquit and forever discharge Employer, its Commissioners, Officers, agents, and representatives, and their heirs, executors, administrators, successors, and assigns, and each and all thereof, of and from any and all manner of action or actions, suits, claims, damages, judgments, levies and executions, whether known or unknown, liquidated or unliquidated, fixed contingent, direct or indirect, which Employee or his heirs, executors, administrators, successors or assigns ever had, has or ever can, shall or may have or claim to have against Employer, its Commissioners, Officers, agents and representatives, and their heirs, executors, administrators, successors or assigns, for upon or by reason of any matter, act or thing prior to the date of this general Release, including, without limiting the generality of the foregoing, any and all claims which were asserted or could have ,been asserted against the Employer, its Commissioners, Officers, agents, and representatives, arising out of employment relationship between Employer and Employee, including but not limited to any and all claims for breach of contract, defamation, or similar matters. -1- IT IS FURTHER STIPULATED AND AGREED, that the Employer for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, does for and on behalf of themselves and their heirs, executors, administrators, successors and assigns, agree to and hereby does release, acquit and forever discharge Employee and his heirs, executors, administrators, successors, and assigns and each and all thereof, of and from any and all manner of action or actions, suits, claims, damages, judgments, levies and executions, whether known or unknown, liquidated or unliquidated, fixed, contingent, direct or indirect, which Employer or their heirs, executors, administrators, successors or assigns ever had, has or ever can, shall or may have or claim to have against Employee and his heirs, executors, administrators, successors or assigns, for upon or by reason of any matter, act or thing prior to the date of this general Release, including, without limiting the generality of the foregoing, any and all claims which could have been asserted by the Employer or any of its individual members against the Employee arising out of the Employee's responsibilities as manager of the Hutchinson Utilities, including but not limited to any and all claims for breach of contract, defamation or similar matters. IT IS SPECIFICALLY UNDERSTOOD and agreed that the payment and acceptance of the consideration hereinbefore recited is in full, final and complete compromise, settlement and satisfaction of disputed claims; the same does not constitute and shall not be construed as, any admission of liability or fault whatever, and there are no cove- pants, promises, undertakings or understandings outside of this Release nor other than as hereinbefore specifically set forth. -2- THE UNDERSIGNED, by execution hereof, states that this Release has been read by all parties to this Mutual Release and that the undersigned understands and fully agrees to each, all and every provision hereof, hereby acknolwedging receipt of a copy hereof. IN WITNESS WHEREOF, the undersigned has executed these presents this day of November, 1986. Ruf d-i -Ale)Eainder, —Employed' HUTCHINSON UTILITIES COMMISSION BY--C Its By B Its I ARNOLD//�r';i�li By G. Bdrry Andersoni Attorney for Rufus Alexander 101 Park Place Hutchinson, Mn. 55350 Telephone No. (612) 587-7575 Attorney I.D. #196X Richard A. Peterson Attorney for Hutchinson Utilities Commission 116 Main South Hutchinson, Mn. 55350 Telephone No. (612) 587-4620 k Resolution 143 • As per resolution #1000 adopted 11 -29 -06 Numbering resolutions from 1936 — 2006 531E Resolution 15 For search purposes only EXTRACT OF MINUTES OF MEETING OF THE HUTCHINSON UTILITIES COMMISSION OF THE CITY OF HUTCHINSON, MINNESOTA HELD: November 24, 1986 Pursuant to due call and notice thereof, a Regular meeting of the Hutchinson Utilities Commission of the City Hutchinson, Minnesota, was duly called and held at the Hutchinson Utilities Building in said City on the 24th day of November, 1986, at 1:00 o'clock P.M. The following members of the Commission were present: all and the following were absent: none Commissioner Beatty introduced the fol- lowing resolution and moved its adoption.. RESOLUTION PROVIDING FOR PUBLIC SALE OF $3,920,000 ELECTRIC UTILITY REVENUE BONDS OF 1986 WHEREAS: A. The City of Hutchinson (the "City ") owns and operates a municipal electric light and power plant system hereinafter referred to as the "Public Utility" which is under the jurisdiction of the Hutchinson Utilities Commission (the "Commission ") and has been under the jurisdiction of the Commission since 1935. B. The Commission has heretofore, pursuant to law, created a Revenue Bond Account in the Light and Power Fund into which all revenues of the Public Utility are paid; C. The Commission deems it necessary and expedient to finance improvements (the "Improvements ") to the Public Utility by acquiring an interest in integrated transmission yd i facilities located outside of the City pursuant to an Integrated Transmission Agreement (the "Integrated Transmission Agreement ") between the Commission, United Power Association and certain other parties; D. By resolution dated August 9, 1976 (the "Prior Resolution ") this Commission authorized the issuance and sale of $4,500,000 Light and Power Plant Revenue Bonds of 1976 (the "Prior Bonds "). There are presently outstanding $1,225,000 in principal amount of the Prior Bonds maturing in the years and principal amounts as follows: December 1, 1986 $600,000 December 1, 1987 $625,000 E. It is necessary and expedient to provide moneys in the amount of $3,920,000 to help finance the Improvements by the issuance of revenue bonds (the "Bonds "), payable solely from the net revenues of the Public Utility; F. The Commission, as the "governing body" of the City within the meaning of that term as defined in Minnesota Statutes, Section 453.52, Subdivision 7, has acquired on behalf of the City, in accordance with the procedures set forth in Minnesota Statutes, Section 453.58, Subdivision 2, sufficient powers under Minnesota Statutes, Chapter 453, to undertake the Improvements ; NOW THEREFORE, BE IT RESOLVED by the Hutchinson Utili- ties Commission of the City of Hutchinson, Minnesota, as follows: 1. Findings. It is hereby found, determined and declared that: (a) The Improvements. It is advisable, expedient and necessary to issue revenue bonds to provide money in the amount of $3,920,000 to help finance the Improvements. (b) Prior Outstanding Bonds. Except for the Prior Bonds, the Commission has no outstanding bonds, warrants, certificates, or other obligations or evidences of indebtedness, or money borrowed for or on account of said Public Utility or indebtedness for which any of the net revenues of all or a part of said Public Utility has been appropriated or pledged. 2 (c) Prior Bonds. Arrangements will be made so that prior to issuance of the Bonds, the Prior Bonds shall be fully defeased or otherwise discharged. (d) Sufficiency of Net Revenues. The estimated revenues to be derived from the operation of the Public Utility during the term of the Bonds authorized by this Resolution will be more than sufficient to produce net revenues after current costs of operation and maintenance adequate to pay principal and interest when due on the Bonds authorized herein and the Prior Bonds and to maintain reasonable reserves therefor. 2. Authorization of Sale. The Commission shall forthwith issue and sell $3,920,000 fully registered Electric Utility Revenue Bonds of 1986 (hereinafter referred to as "Bonds" or individually as "Bond "), and the publication of the notice of sale in the official newspaper and in Commercial West at least ten days in advance of the date of sale is hereby ratified and approved. Notice shall be in substantially the following form: 3 v 1 J NOTICE OF BOND SALE $3,920,000_ ELECTRIC UTILITY REVENUE BONDS OF 1986 HUTCHINSON UTILITIES COMMISSION OF THE CITY OF HUTCHINSON McLEOD COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that these bonds will be offered for sale according to the following terms: TIME AND PLACE: December 9, 1986, at 12:15 P.M. at the Hutchinson Utilities Building in Hutchinson, Minnesota. TYPE OF BONDS: Fully registered revenue bonds, $5,000 or integral multiples thereof at the option of the bidder. DATE OF ORIGINAL ISSUE OF BONDS: December 1, 1986. PURPOSE: To finance improvements to the electric utility of the Issuer. INTEREST PAYMENTS: December 1, 1987, and semiannually thereafter on June 1 and December 1. MATURITIES: December 1 in each of the years and amounts as follows: 1988 $410,000 1989 425,000 1990 450,000 1991 470,000 1992 495,000 1993 525,000 1994 555,000 1995 590,000 All dates are inclusive. n REDEMPTION: At the option of the issuer, Bonds maturing on or after December 1, 1991 shall be subject to prior payment, on December 1, 1990 and on any interest payment date thereafter, at a price of par and accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the Bonds rema.ining unpaid which have the latest maturity date shall be prepaid first and if only part of the bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid shall be chosen by lot by the Registrar. BOND REGISTRAR: The purchaser will name the Registrar which shall be subject to applicable SEC regulations and the approval of the Issuer. Principal will be payable at the main corporate office of the Registrar and interest will be payable by check or draft of the Registrar mailed to the registered holder of the Bond at his address as it appears on the books of the Registrar. The issuer will pay reasonable and customary charges for the services of the Registrar. CUSIP NUMBERS: The Bonds will be printed without CUSIP numbers unless requested by the Purchaser who must agree in the offer for the Bonds to pay all costs and expenses thereof including printing and CUSIP Service Bureau charges. Any failure to print such numbers or errors in printing shall not be cause for failure or refusal of the Purchaser to accept delivery of and payment for the Bonds in accordance with the purchase contract. The Purchaser shall waive any extension 5 1 �( in delivery time due to use of the numbers and shall accept all responsibility in connection with use of CUSIP numbers. DELIVERY: It is anticipated that the bonds will be delivered 40 days after award subject to approving legal opinion of Briggs and Morgan, Professional Association of St. Paul and Minneapolis, Minnesota, and customary closing papers, including a statement of non - litigation and non - arbitrage certificate. Bond printing and legal opinion will be paid by issuer and delivery will, at option of Purchaser, be anywhere in the continental United States without cost to the Purchaser. Legal opinion will be printed on the Bonds at the request of the successful bidder. TYPE OF BID: Sealed bids of not less than $3,822,000 and accrued interest on the principal sum of $3,920,000 from date of original issue of the Bonds to date of delivery must be filed with the undersigned prior to the time of sale, together with a certified or cashier's check in the amount of $39,200, payable to the order of the Secretary of the issuer, to be forfeited as liquidated damages if bidder fails to comply with accepted bid. Bids for the Bonds should be addressed to: Secretary of the Public Utilities Commission, Hutchinson Utilities Commission, Hutchinson Utilities Building, 225 Michigan Street, Hutchinson, Minnesota 55350. 6 I 1 1 I RATES: All rates and combination of rates must be in integral multiples of 1 /20th or 1 /8th of 1 %. No limitation is placed upon the number of rates which may be used. All bonds of the same maturity must bear a single uniform rate from date of issue to maturity and no -rate of any maturity may be lower than the highest rate applicable to bonds of any preceding maturities. AWARD: Award will be made solely on the basis of lowest dollar interest cost, determined by addition of any discount to and deduction of any premium from the total interest on all Bonds from their date to their stated maturity. The issuer reserves the right to reject any and all bids, to waive informalities, and to adjourn the sale. Bidders should be aware that the Official Terms of Bond Sale to be published in the Official Statement for the sale may contain additional bidding terms and information relative to the Issue. In the event of a variance between statements in this Notice of Bond Sale and said Official Terms of Bond Sale the provisions of the latter shall be those to be complied with. Dated: November 24, 1986 Additional information may be obtained from: JURAN & MOODY, INC. Minnesota Mutual Life Building 400 North Robert Street Suite 800 St. Paul, Minnesota 55101 Telephone No: 612 - 224 -1500 7 BY ORDER OF THE PUBLIC UTILITIES COMMISSION /s/ Thomas Lyke Secretary of the Hutchinson Utilities Commission 1 3. Adoption of Terms and Conditions. Each and all of the terms and provisions of the foregoing form of notice are hereby adopted as the terms and conditions of the Bonds and of the sale thereof. 4. Original Issue Date; Denomination; Maturities. The Bonds shall be dated December 1, 1986, as the date o original issue and shall be issued as fully registered bonds. The Bonds shall be numbered from R -1 upward in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on December 1 in the years and amounts as follows: Year Amount 1988 $410,000 1989 425,000 1990 450,000 1991 470,000 1992 495,000 1993 525,000 1994 555,000 1995 590,000 5. Interest. The Bonds shall semiannually on June 1 and December 1 of December 1, 1987 at the respective rates opposite the maturity years as follows: Maturity Years 1988 1989 1990 1991 1992 1993 1994 1995 bear interest payable each year commencing per annum set forth Interest Rates 6. Redemption. All Bonds of this issue maturing in the years 1991 to 1995, both inclusive, shall be subject to redemption and prepayment at the option of the Commission on December 1, 1990 and on any interest payment date thereafter at par and accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest E t1 ` maturity date shall be prepaid first; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Published notice of redemption shall in each case be given in accordance with law, and mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds. To effect a partial redemption of Bonds having a com- mon maturity date, the Bond Registrar prior to giving notice of redemption, shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected. Provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Commission or the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Commission and the Bond Registrar duly executed by the holder thereof or his attorney duly authorized in writing) and the Commission shall execute and the Bond Registrar shall authenticate and deliver to the holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 7. Bond Registrar. , in , Minnesota is appointed to act as bond registrar and transfer agent (the "Bond Registrar ") and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the Commission and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor 01 1 fJ paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holder) of the Bonds in the manner set forth in the form of Bond and paragraph 13 of this Resolution. S. Form of Bond. The Bonds to be issued hereunder, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon shall be in substantially the following form: 10 R� S UNITED STATES OF AMERICA STATE OF MINNESOTA McLEOD COUNTY CITY OF HUTCHINSON HUTCHINSON UTILITIES COMMISSION R- $ ELECTRIC UTILITY REVENUE BOND OF 1986 INTEREST MATURITY DATE OF RATE DATE ORIGINAL ISSUE CUSIP December 1, 1986 REGISTERED OWNER: PRINCIPAL AMOUNT: KNOW ALL PERSONS BY THESE PRESENTS that the City of Hutchinson, Minnesota, a duly organized municipal corporation of McLeod County, Minnesota, by the Hutchinson Utilities Commission (the "Issuer "), hereby acknowledges that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on June 1 and December 1 of each year (each, an "Interest Payment Date ") commencing December 1, 1987 at the rate per annum specified above, (calculated on the basis of a 360 -day year of twelve 30 -day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of , a duly organized and validly existing under the laws of (the "Bond Registrar "), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder ") on the registration books of the Issuer maintained by the Bond Registrar and at the 11 address appearing thereon at the close of business on the fifteenth day of the - calendar montn next preceding such Interest Payment Date (the "Regular Record Date "). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date ") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser does not exceed any constitutional or statutory limitation of indebtedness; and that the Issuer will maintain rat;ts and charges for the electric service furnished by the electric utilities sufficient in an amount to promptly meet the principal and interest requirements of this issue. IN WITNESS WHEREOF, City of Hutchinson, McLeod County, Minnesota, by the Hutchinson Utilities Commission, has caused this Bond to be executed in its behalf by the facsimile signatures of the President and the Secretary of the Commission, corporate seal of the City having been intentionally omitted as permited by law. 12 r Date of Registration: Registrable by: Payable at: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within mentioned Resolution. Bond Registrar By Authorized Signature r HUTCHINSON UTILITIES COMMISSION OF THE CITY OF HUTCHINSON, McLEOD COUNTY, MINNESOTA /s/ Facsimile President /s/ Facsimile Secretary 13 1 r ON REVERSE OF BOND Redemption. All Bonds of this issue maturing in the years 1991 to 1995, both inclusive, are subject to redemption and prepayment at the option of the Issuer on December 1, 1990 and on any Interest Payment Date thereafter at par and accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date shall be prepaid first; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Published notice of redemption shall in each case be given in accordance with law, and mailed notice of redemption shall be given to the paying agent and to each affected Holders of the Bonds. Selection of Bonds for Redemption; Partial Redemption. To ettect a partial redemption of onds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date, a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected. Provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and the Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 14 1 Issuance; Purpose; Special Obligations. This Bond is one of an issue in the total principal.amount of $3,920,000 all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to resolutions adopted by the City Council and the Hutchinson Utilities Commission (the "Resolutions ") for the purpose of providing money to finance the cost of improvements to the municipal electric light and power plant system by acquiring an interest in integrated transmission facilities located outside the City. The Bonds and the interest thereon are payable solely and exclusively from the net revenues of the electric light and power plant system of the City pledged to the payment thereof, and do not constitute a debt of the Commission or of the City within the meaning of any constitutional or statutory limitation of indebtedness. In the event of any default hereunder, the holder of this Bond may exercise any of the rights and privileges granted by the laws of the State of Minnesota subject to the provisions of the authorizing resolution of the Issuer. The Bonds of this issue, are a first and prior lien upon the net revenues of the electric light and power plant system of the City, except that the Issuer is authorized under certain conditions to issue additional revenue obligations on a parity of lien with these Bonds, all as provided in the Resolutions authorizing the Bonds. Remedies. The holders of 20% or more in aggregate principal amount of Bonds at any time outstanding may, either by law or in equity, by suit, action, or other proceedings, protect and enforce the rights of all holders of Bonds then outstanding, or enforce and compel the performance of any and all of the covenants and duties specified in the Resolutions of the Issuer to be performed by the Issuer or its officers and agents; provided, however, that nothing shall affect or impair the right of any Bondholder to enforce the payment of the principal of and interest on any Bond at and after the maturity thereof, or the obligation of the Issuer to pay the principal of and interest on each of the Bonds issued to the respective holders thereof at the time and place, from the source and in the manner provided in the Bonds. Denominations; Exchange; Resolutions. The Bonds are issuable solely as fully registered Bon—Ts in the denominations of $5,000 and integral multiples thereof and are exchangeable for fully registered Bonds of other denominations in equal 15 `t aggregate principal amounts and in authorized denominations at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolutions for a description of the rights and duties of the Bond Registrar. Copies of the Resolutions are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or by his attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolutions and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an authorized denomination or denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees Upon Transfer or Loss. The Bond Registrar may require payment ot a sum su icien to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Registered Owners. The Issuer and the Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as provided on the reverse side hereof with respect to the Record Dates) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory or any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Qualified Tax - Exempt Obligations. The Bonds have been designated by the Issuer as "qualified tax - exempt obliga- tions" for purposes of section 265(b)(3) of the federal Internal Revenue Code of 1986, as amended. 16 0 1 n The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UNIF GIFT MIN ACT Custodian Cust Minor under Uniform Gifts to Minors Act State Additional abbreviations may also be used though not in the above list, 17 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all point owners if the Bond is held by joint account.) 18 9. Execution; Temporary Bonds. The Bonds shall be executed on behalf of the Commission by the signature of its President and the signature of its Secretary; provided, that one or both, of such signatures may be printed facsimiles. In the event of disability or resignation or other absence of either such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. When so prepared and executed, the Secretary shall cause the Bonds to be delivered to the Purchaser thereof, upon payment to the Secretary of the agreed purchase price, and the Purchaser shall not be obligated to see to the use and application thereof by the Secretary, but such proceeds shall be used and applied only as herein provided. 10. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless and until a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the Commission on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue, which date is December 1, 1986. The executed Certificate of Authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 11. Registration; Transfer; Exchange. The Commission will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. 19 1 Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the Commission shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 10) and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the holder, Bonds may be exchanged for Bonds of any authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the Commission shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of authentication of, and deliver the Bonds which the holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in.this resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the Commission. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid special obligations of the Commission evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented exchange shall be duly endorsed instrument of transfer, in form Registrar, duly executed by the duly authorized in writing. r surrendered for transfer or or be accompanied by a written satisfactory to the Bond holder thereof or his attorney The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. 20 Transfers shall also be subject to reasonable regula- tions of the Commission contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. 12. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 13. Interest Payment; Record Date. Interest on any Bond shall be paid on each interest payment date by check or draft mailed to the person in whose name the Bond is registered (the "Holder ") on the registration books of the Commission maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such interest payment date (the "Regular Record Date "). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date ") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than 10 days prior to the Special Record Date. 14. Treatment of Registered Owner. The Commission and the Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 13 above) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the Commission nor the Bond Registrar shall be affected by notice to the contrary. 15. Funds and Accounts. For the convenience and proper administration of the proceeds derived from the sale of the Bonds and for the payment of principal of and interest on the Bonds, the City shall continue to maintain its Light and Power Fund in accordance with the provisions of the City Charter and shall maintain financial records of all receipts and disbursements relating to the electric light power plant system, in which records then shall continue to be maintained as accounts within that fund for the purpose and in the amounts as described below: 21 (a) A "Capital Expenditure Account" into which there shall be paid the proceeds from the sale of the Bonds less any premium and accrued interest paid by the Purchaser upon delivery, plus sums in the Surplus Account in such amount as is necessary to pay the cost of the Improvements as hereinafter provided. From the Capital Expenditure Account shall be paid all costs of the Improvements to be financed by the Bonds, including legal, engineering, financing and other such expenses incidental thereto. Any balance remaining in the account after the payment of such costs shall be transferred to the Surplus Account herein established. (b) An "Operation and Maintenance Account" into which shall be paid all gross revenues and earnings derived from the operation of the Public Utility. From this account there shall be paid all, but only, current expenses of the system. Current expenses shall include the reasonable and necessary costs of administering, operating, maintaining and insuring the Public Utility, the cost of purchasing power from other utilities and /or power agencies, salaries, wages, costs of materials and supplies, necessary legal, engineering and auditing services, and all other items which, by sound accounting practices constitute normal, reasonable and current costs of operation and maintenance, but excluding any allowance for depreciation, extraordinary repairs and payments into the Revenue Bond Account, Surplus Account and Reserve Account. There shall at all times be maintained in the account a reserve in a reasonable amount sufficient to cover emergencies. All money remaining in the Operation and Maintenance Account, including interest or other earnings received from the investment of any moneys in the Light and Power Fund, after paying or providing for the foregoing items shall constitute and are referred to in this resolution as "net revenues." (c) A "Revenue Bond Account" into which there shall be credited and to which there is hereby irrevocably pledged (1) accrued interest and premium (if any) paid by the original purchaser of the Bonds (the "Purchaser ") upon delivery of the Bonds, (2) all funds paid for the Bonds in excess of $3,822,000, and (3) from the net revenues of the operation of the Public Utility monthly a sum equal to at least 1 /12th of the total principal and interest due during the ensuing 12 months on the Bonds and any other bonds issued on a parity therewith (collectively the "Parity Bonds "); provided, however, that no further 22 (f) Excess Net Revenues - Net revenues in excess of those required for the foregoing purposes may be used for any proper purpose. 23 payments need be made to the account when the moneys held therein are sufficient for the payment of all principal and interest due on the Parity Bonds on or before the next maturity date of each issue thereof. No money shall be paid out of the account except to pay principal and interest on the Parity Bonds. (d) A "Reserve Account" hereby established, to be used only when and if moneys in the Revenue Bond Account or other moneys available therefor are insufficient to pay principal and interest on the Parity Bonds; provided, however, that the moneys in the Reserve Account may be used to prepay the Parity Bonds, when such prepayment will retire all of the Parity Bonds then outstanding. There is hereby pledged and appropriated to the Reserve Account Bond proceeds equal to ten percent (10 %) of the face amount of the Bonds. Whenever any moneys constituting the Reserve Account shall be used to pay principal and interest, the Reserve Account shall be restored from the next available net revenues, provided however, that the Reserve Account shall terminate whenever there are sufficient funds in the Revenue Bond Account to pay principal and interest on all outstanding Parity Bonds. In no event may sums in the Reserve Account be used to fund the Revenue Bond Account so long as there are sufficient net revenues therefor. The balance in the Reserve Account shall be deemed to be the sum of all cash and the cost of all securities held in the account. (e) A "Surplus Account" to which shall be credited as received all net revenues over and above the amounts appropriated to the Revenue Bond Account and the Reserve Account. Money from time to time in the Surplus Account may by resolution of the Commission be used for the repair, replacement, improvement or extension of the Public 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 or the Reserve Account. (f) Excess Net Revenues - Net revenues in excess of those required for the foregoing purposes may be used for any proper purpose. 23 (g) Investments. Moneys on deposit in the "Reserve Account ", "Revenue Bond Account" and "Surplus Account may be invested in any securities described in Minnesota Statutes, Section 475.66, as from time to time amended. Such investment may at any time be liquidated and the proceeds thereof applied for the purpose or purposes for which the fund was created. (h) Allocation of Money. The money in the Light and Power Fund shall be allotted and paid to the various accounts herein above described in the order in which the funds are listed on a cumulative basis, and if in any month the money in the accounts is insufficient to place the required amount in any account, the deficiency shall be made up in the following month or months after payment into all other funds having a prior claim on the revenues have been made in full. (i) Separate Accounting. All money held in any of the accounts created by this Resolution shall be kept separate and apart from all municipal funds and accounts. (j) Arbitrage Covenants. The Revenue Bond Account and Reserve Account sha. ll ba used solely to pay the principal and interest and any premiums for redemption of all Parity Bonds. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, (2) as part of a reasonably required reserve or replacement fund not in excess of ten percent (10 %) of the proceeds of the Parity Bonds (or in a higher amount which the Commission establishes is necessary to the satisfaction of the Secretary of the Treasury of the United States, and (3), in addition to the above in an amount not funded from the proceeds of Parity Bonds and not greater than the lesser of five percent (5%) of the proceeds of the Bonds or $100,000.. To this effect, any sums from time to time held in the Revenue Bond Account and the Reserve Account (or any other City or Commission account which will be used to pay principal or interest to become due on the bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield 24 restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. Money in the Light and Power Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code "). 16. Additional Parity Bonds. The Bonds issued hereunder shall be secured by a first charge and lien upon the net revenues of the Public Utility. No additional obligations shall be hereafter issued unless they are secured by,a lien on said net revenues made expressly second and subordinate to the lien upon said net revenues securing all Parity Bonds; provided however, that additional obligations may be issued on a parity of lien with the Parity Bonds so long as the average annual net revenues of the public utilities for the three completed fiscal years immediately preceding the issuance of such additional obligations shall have been at least (a) one and one -half times the average annual principal and interest coming due thereafter on all outstanding Parity Bonds, including the additional obligations so to be issued; and (b) equal to the maximum annual principal and interest coming due thereafter on all outstanding obligations payable from the revenues of the Power and Light Fund, including any subordinate lien obligations and the additional obligations so to be issued. Such facts shall be shown by the Certificate of the Secretary of the Commission and recited in the resolution authorizing any such additional series. In addition, the following conditions shall be met: (a) The payments required to be made (at the time of the issuance of such parity lien bonds) into the various accounts provided for in this Resolution have been made. (b) The resolution authorizing such additional bonds provides for the pledge and payment into the Reserve Account of either (i) sums on hand (which may be funded from the proceeds of such additional bonds) equal to at least ten percent (10 %) of the face amount of such additional bonds (the "Reserve Requirement ") or (ii) net revenues of the Public Utility monthly commencing on the month next suceeding issuance of the additional bonds equal to at least 1 /48th of the Reserve Requirement until an additional reserve equal to at least said Reserve Requirement has accumulated in the Reserve Account. 25 (c) The proceeds of such additional bonds shall be used only for the purpose of financing or refinancing improvements, additions, extensions, renewals or replacements to the Public Utility. For the purpose of determining the net revenues of the Public Utility for each of the preceding calendar or fiscal years as aforesaid, the amount of the gross revenues of the Public Utility for such years may be adjusted by a Consulting Engineer or by the independent certified public accountant who prepared the last audit report covering the operations of the Public Utility so as to reflect any changes in the amount of such revenues which would have resulted if any revision of the schedule of rates and charges imposed had been in effect. The amount of the revenues may be further adjusted for such purpose by a Consulting Engineer or such certified public accountant to the extent that either person estimates that: (a) any demand charges (as opposed to charges for the purchase of electric energy) paid under any interconnection agreement or contract with another utility system for the interchange of electric service during the preceding calendar or fiscal years would have been eliminated or reduced by reason of the improvements and extensions then to be constructed, (b) net revenues of the Public Utility would have increased if the customers using the Public Utility as of the date of issuance of the additional obligations had been customers during said preceding years, (c) a reduction in base load energy costs or savings in the cost of purchased power would have been affected if the improvements and extensions then to be constructed had been in operation during said preceding years, and (d) the annual net revenues of the Public Utility during the first calendar or fiscal year of operation after completion of the improvements and extensions then to be constructed will increase because of the sale of surplus power resulting from the addition to the Public Utility of the improvements and extensions, provided, however, that such sale or sales may be considered only to the extent the same are supported by firm contracts requiring the Purchaser to pay for available surplus power or capacity whether or not it is in fact accepted by the Purchaser. The term "Consulting Engineer" means an engineer or firm of engineers who is not an officer or regular employee of the Commission or the City and is not devoting substantially all of his, hers or its time and effort to the affairs of the Public Utility. Subject to the provisions of paragraph 22, additional Parity Bonds may also be issued, without complying with the coverage provisions set forth above, to provide funds to: (1) Finance the Commission's cost under any agreement entered into between the Commission and one or more other public utilities suppliers for the purchase of excess capacity of the facilities by such other suppliers until such time that the Commission no longer needs to utilize such excess capacity to meet its own power supply needs, including, but not limited to, any agreement between the Commission and their power supplier, United Power Association, covering the purchase of additional capacity. (2) Finance the Commission's share of any cost incurred pursuant to a joint electrical agreement entered into under the authority of Minnesota Statutes, Sections 453.51 to 453.63. Nothing herein shall be construed as prohibiting the Commission or City from treating the costs referred to in this paragraph 16 as an operating cost payable from the Operation and Maintenance Account so long as the obligation to pay such costs is not treated as debt under generally accepted. accounting principles. No additional Parity Bonds may be issued pursuant to this paragraph 16 unless the conditions and requirements of the resolutions authorizing all respective Parity Bonds are complied with and fully performed. 17. Refunding Bonds. The Commission also reserves the right and privilege of issuing additional Parity Bonds if and to the extent needed to refund bonds maturing within six months of the issuance of the refunding- bonds in case the moneys in the Revenue Bond Account, Reserve Account, and the Surplus Account of the Power and Light Fund are insufficient to pay the same at maturity, provided that such refunding Parity Bonds shall mature subsequent to all other Parity Bonds which are still outstanding upon completion of such refunding. 18. Subordinate Lien Bonds. Except as authorized in paragraphs 16 and 17 hereof, the Commission covenants and agrees that it will issue or incur no obligations payable from the net revenues of all or a part of the Public Utility or constituting in any manner a lien thereon, unless such obligations are secured by a lien on such net revenues which is expressly made junior and subordinate to the lien and charge of the Parity Bonds on the net revenues, except that the Parity Bonds, or any part thereof, may be refunded and the refunding bonds issued shall enjoy complete equality of lien with the 27 i a portion of any Parity Bonds not refunded, if there are any, provided that if only a portion of the outstanding Parity Bonds shall be so refunded and if such Parity Bonds shall be refunded in such manner. that the annual principal and interest to become due on the refunding Parity Bonds shall be greater than the annual principal and interest to become due on the Parity Bonds to be refunded (assuming payment at their maturity), then such Parity Bonds may not be refunded without the consent of the holders of the unrefunded portion of the outstanding Parity Bonds. 19. Application of Funds Upon Default. In the event that the moneys in the Revenue Bond Account, tFie Reserve Account and the Surplus Account shall be insufficient at any time to pay the principal then due and interest then accrued on all Parity Bonds payable therefrom, said moneys shall first be applied to the payment pro rata of the accrued interest on all such Parity Bonds, and any balance shall be applied in payment pro rata of the principal on all such Parity Bonds; provided further that if it shall ever be determined by a court of competent jurisdiction while any such Parity Bonds remain outstanding that the sums available and to become available for the payment of the principal thereof and interest thereon are insufficient whether or not then due, then the moneys in the Revenue Bond Account, the Reserve Account and the Surplus Account shall be applied in payment of all then outstanding principal whether or not then due and the interest accrued thereon to the date of payment ratably according to the aggregate amount thereof without any preference or priority. 20. Bondholder Remedies. The holders of 20% or more in aggregate principal amount of all outstanding Parity Bonds may, either at law or in equity, by suit, action, or other proceedings, protect and enforce the rights of all holders of all outstanding Parity Bonds or enforce or compel the performance of any and all of the covenants and duties specified in this resolution, to be performed by the Commission and City or their officers and agents, including the fixing and maintaining of rates and charges and the collection and proper segregation of revenues and the application and use thereof; provided, however, that nothing herein shall affect or impair the right of the holder of any Parity Bond to enforce the payment of the principal of and interest on any Parity Bond at and after the maturity thereof, or the obligation of the Commission to pay the principal of and interest on each of the Parity Bonds issued hereunder to the respective holders thereof at the time and place, from the source and in the manner provided in the Parity Bonds. W 21. Additional Covenants. For the protection of the holders of the Bonds herein authorized and all other Parity Bonds from time to time outstanding, the Commission herein covenants and agrees to and with the holders thereof from time to time as follows: (a) It will at all times adequately maintain and efficiently operate the Public Utility as a municipal utility. It will from time to time make all needful and proper repairs, replacements, additions and betterments to the equipment and facilities of the Public Utility so that they may at all times be operated properly and advan- tageously, and whenever any equipment of the system shall have been worn out, destroyed or otherwise become insufficient for proper use, it shall be promptly replaced or repaired so that the value and efficiency of the Public Utility shall be at all times fully maintained and its revenues unencumbered by reason thereof. (b) It will permit no free service to any consumer or utility. The rates for all electric service and the charges for all electricity supplied by the Public Utility to the City and its residents and to all consumers shall be reasonable and just, taking into account the cost and value of the Public Utility, the cost of maintaining and operating the Public Utility and the proper and necessary allowances for depreciation and the amounts required for the payment of principal and interest on the bonds payable from the net revenues of the Public Utility. (c) It will establish, maintain and collect such charges and rates as will produce revenues sufficient to pay the reasonable cost of operation and maintenance of the Public Utility and to pay 125 percent of the interest on and principal of all Parity Bonds and 100 percent of the interest on and principal of all subordinate lien bonds as and when they become due as well as to provide sufficient money to make the required appropriations to the various accounts established herein. (d) Neither the Commission nor the City will sell, lease, mortgage, or in any manner dispose of the Public Utility or any part thereof including any and all extensions and additions that may be made thereto until all bonds payable from the revenues of the Public Utility or a part thereof have been paid in full; provided however, that the Public Utility or any part thereof may 29 i be sold if simultaneously with or prior to the sale all of the outstanding bonds are discharged in accordance with paragraph 24 of this Resolution; and provided further that all or any part of the electric generating or transmission facilities of the Public Utility may be leased or sold to a municipal power agency of which it is a member provided that the City shall continue to operate and maintain an electric distribution system as part of the public utilities. This covenant shall not be construed to prevent . the sale by the City at fair market value of real estate, equipment or other non - revenue - producing properties which in the judgment of the Commission have become unnecessary, uneconomical or inexpedient to use in connection with the public utilities provided that suitable facilities are obtained in place thereof or in the judgment of the Commission the sale will not adversely affect the public utilities earnings or ability to meet required financial obligations. (e) It will procure and keep in force insurance upon the public utilities of a kind and in an amount which would normally be carried by private companies in a like business, including public liability insurance, with an insurer or insurers in good standing; and it will keep in full force and effect fiduciary bonds on employees in charge of the utilities. In the event of any loss, the proceeds from such insurance (including liability insurance) or bonds shall be used to make good such loss or to repair or restore the utility or to discharge all of the outstanding Parity Bonds in accordance with paragraph 26 of this resolution. Insurance premiums shall be paid as a cost of operation. (f) The Commission shall cause to be kept proper books, records and accounts adapted to the public utilities separate from other accounts to be audited by a certified public accountant at the end of each fiscal year. A copy of the audit shall be furnished, without cost, to the original purchaser of any outstanding Parity Bonds within 90 days after the close of each fiscal year. If the Commission fails to provide such audit at such time, the holders of 20% or more of the outstanding Parity Bonds may cause such audit to be made at the expense of the Commission. The expense of preparing such audit shall be paid as current operating expenses of the utility. The original purchaser of the outstanding Parity Bonds and the holders thereof, or their duly appointed representatives, from time to time shall have the right at all reasonable tie] L1 times, to inspect the public utilities system and to inspect and copy the books, records, accounts and data relating thereto. The City agrees to furnish copies of such audit, without cost, to any holder or holders of the Parity Bonds at their request within 90 days after the close of each fiscal year. (g) It will faithfully and punctually perform all duties with reference to the public utilities required by the Constitution and laws of the State of Minnesota and this resolution. (h) The City will grant no franchise to any competing utility if denial of such a franchise is not in violation of any law. 22. Output Contracts; Integrated Transmission Agreement Tax Covenants. The Commission herein covenants that (1) neither it nor the City has heretofore nor will either the Commission or the City hereafter enter into any contract which will obligate any person or persons to purchase electric energy from the Commission in a total aggregate amount which would cause any of the Parity Bonds herein authorized to become private activity bonds within the meaning of Section 141 of the Internal Revenue Code of 1986 (the "Code ") and the regulations promulgated thereunder and (2) it will take such actions as are provided for in the Integrated Transmission Agreement to preserve the tax exempt status of the Bonds. 23. Amendments. No change, amendment, modification or alteration shall be made in the covenants made with holders of the Parity Bonds without the consent of the holders of not less than 60% in principal amount of then such outstanding Parity Bonds except for changes, amendments, modifications and alterations made (a) to cure any ambiguity or formal defect or omission, or (b) any other change which would not materially prejudice the holders of such outstanding Parity Bonds; provided, however, that nothing herein contained shall permit or be construed as permitting (1) an extension of the maturity of the principal of or the interest on any such Parity Bonds, or (2) a reduction in the principal amount of any such Parity Bond or the rate of interest thereon, or (3) a privilege or priority of any such Parity Bond or Bonds over any other Parity Bond or Bonds except as otherwise provided herein, or (4) a reduction in the aggregate principal amount of such Parity Bonds required for consent to any change, amendment, modification or alteration, or (5) permit the creation of any lien ranking prior to or on a parity with the lien of such 31 Parity Bonds, except as hereinbefore expressly permitted, or (6) modify any of the provisions of this paragraph without the consent of the holders of one hundred percent (100 %) of the principal amount of Parity Bonds outstanding, or, in the case of any modifications described in clauses (1) through (5) the holders of only those outstanding Parity Bonds adversely affected by the modifications. 24. Discharge. When any Parity Bonds and the interest due thereon, have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the holders of such Parity Bonds (other than the tax covenants) shall cease. The Commission may discharge any Parity Bonds which are due on any date by depositing with the Bond Registrar for such Bonds on or before that date a sum sufficient for the payment thereof in full; or if any Parity Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full. The Commission may also discharge any prepayable Parity Bonds which are called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due, provided that notice of such redemption has been duly given as provided in the resolution authorizing the Parity Bonds. The Commission may also at any time discharge any Parity Bonds of this issue by complying with the applicable provisions of Minnesota Statutes, Section 475.67, and any amendments thereto, except that the funds deposited in escrow in accordance with the provisions may but need not be in whole or part proceeds of advance refunding bonds. The Commission may discharge Parity Bonds as herein provided without the consent of the holders of any outstanding Parity Bonds. 25. Fiscal Year. As used in this resolution the words "Fiscal Year" shall mean the 12 month period beginning on January 1 of each year and ending on December 31 of the same year. Should it be deemed advisable at some later date to change its fiscal yearly basis, the same may be done by proper actions to that effect, with the approval of the original Purchaser of these Bonds, which change shall not constitute an amendment or modification of this resolution. 26. Separability Provision. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 32 27. Records and Certificates. The Secretary is authorized and directed to prepare and furnish to the original Purchaser of the Bonds, and the attorneys approving the same, certified copies of all orders and resolutions of the Commission relating to the public utilities system, and the issuance of the Bonds, and all other proceedings or records showing the right, power and authority of the Commission to issue the same and to provide funds for the payment thereof, and such certified copies and certificates shall be deemed representations of the Commission as to all statements therein. 28. Negative Covenant as to Use of Improvements. The Commission hereby covenants not to use the improvements or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 29. Designation of Qualified Tax - Exempt Obligations. In order to qualify the Bonds as "qualified tax - exempt obligations" within the meaning of Section 265(b)(3) of the Code, the Commission hereby makes the following factual state- ments and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the Commission and City hereby designate the Bonds as "qualified tax - exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax - exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City itself or through the Commission (and all subordinate entities of the City) during this calendar year 1986 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City by itself or through the commission during this calendar year 1986 have been designated for purposes of Section 265(b)(3) of the Code. 33 The City shall use its best efforts to comply with an federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 30. Determination As To Debate. For purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the Commission hereby finds, determines and declares that the aggregate face amount of all tax - exempt bonds (other than private activity bonds) issued by the City itself or through the Commission (and any subordinate entities of the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(C) of the Code; and accordingly the rebate requirements in Section 148(f) of the Code shall not apply. 31. Covenant With Bondholders. Each and all of the terms and provisions of this resolution shall be and constitute a covenant on the part of the Commission to and with each and every holder from time to time of the Bonds issued hereunder and any other Parity Bonds from time to time outstanding. 32. Filing. The Secretary is authorized and directed to file a certified copy of this resolution and the resolution accepting the bid on the Bonds with the County Auditor of County, and obtain a certificate that the Bonds herein author- ized have been duly entered in his Bond Register. 33. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. The motion for the adoption of the foregoing resolu- tion was duly seconded by member Lyke and upon a vote being taken thereon, the following voted in favor thereof: Commissioner Daggett Commissioner Beatty Com<ni.ssioner Lyke and the following voted against the same: None Whereupon said resolution was declared duly passed and adopted. 34 STATE OF MINNESOTA COUNTY OF McLEOD CITY OF HUTCHINSON I, the undersigned, being the duly qualified and acting Secretary of the Hutchinson Utilities Commission of the City of Hutchinson, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the Hutchinson Utilities Commission of said City, duly called and held on the date therein indicated, insofar as such minutes relate to providing for the public sale of, $3,920,000 Electric Utility Revenue Bonds of 1986. WITNESS my hand and the seal of said City this 24th day of November , 1986_ Secretary _ r a OCTOBER PAYABLES - ELECTRIC MMUA Registration workshop 275.00 Gary Amundson Refund - overpayment 61.87 Mary Goede Refund - overpayment 80.75 John Aguilar Meter refund & interest 6.50 Antonio Garza 65.85 Sherri Salmela Wendorff 94.38 Jay B. Janowski 85.44 Ron Bauman 60.69 Heidi Erickson 96.27 Lori Manski 95.69 Barbara Anderl 19.17 James W. Johnson 66.85 Petty Cash 585.81 Lowell Otto Refund - overpayment 150.00 MN Safety Council Registration 50.00 PERA PERA withheld & expense 3,754.57 D.O.E.R. SS Ret. Div. FICA withheld & expense 3,796.72 Citizens Bank & Trust Co. Federal tax withheld 4,484.89 First National Bank Payroll deposit plan 1,120.02 Citizens Bank & Trust Payroll deposit plan 6,427.66 Firstate Federal Savings Payroll deposit plan 4,095.31 Putnam Fund Dist. Inc. Employee deferred comp withheld 25.00 ICMA Retirement Corp. Employee deferred comp withheld 1,089.00 Woodmen Accident & Life Co. Medical insurance 5,565.30 Continental Assurance Co. Life insurance 211.49 Continental Assurance Co. Life insurance 45.65 American Family Life Employee insurance withheld 128.40 American Payment Centers Rent 66.00 Anderson Chemical Co. Chemical inventory 18.18 Citizens Bank & Trust Co. Deposit to Contribution Account 25,000.00 Citizens Bank & Trust Co. Deposit to Bond & Int. Pay't Acct 10,258.33 Colonial Life & Accident Employee insurance withheld 188.60 Graybar Electric Co. Dist. inventory 60.40 Hutch Utilities Employee utility bills withheld 725.00 Natural Gas Division Due to Natural Gas Division 158,561.59 Accounts Receivable Richard Peterson Legal retainer 400.00 PERA Employee insurance withheld 18.00 U.S. Postal Service Stamps 110.00 United Way United Way withheld 132.00 Direct Safety Company Plant supplies 24.20 Graphic Controls Corp. Plant supplies 113.04 H & C Electric Supply Plant supplies 53.63 IBM Corp. Maintenance service 710.24 Midwest Gas Assn. Employee insurance withheld 26.00 MN Electric Supply Co. Plant supplies 75.26 National Electric, Inc. Transformer maint. 400.00 New Hermes, Inc. Office supplies 115.94 Paper Service Co. Plant supplies 119.20 Petersen - Wisdorf, Inc. Dist. inventory 623.76 The Reliable Corp. Office supplies 194.69 6 OCTOBER - ELECTRIC (cont) Rockmount Research & Alloys Plant supplies 128.16 X -Ergon Plant supplies, supplies, tools 223.43 Consolidated Freightways Freight charges 92.20 First National Bank Payroll deposit plan 1,341.24 Citizens Bank & Trust Co. Payroll deposit plan 6,768.88 Firstate Federal Savings Payroll deposit plan 4,161.88 PERA PERA withheld & expense 3,637.19 D.O.E.R. SS Ret. Div. FICA withheld & expense 3,859.12 Commissioner of Revenue State tax withheld 3,901.51 Citizens Bank & Trust Co. Federal tax withheld 4,350.78 Quast Transfer Freight charges 176.63 Putnam Fund Dist. Employee deferred comp withheld 25.00 ICMA Retirement Corp. Employee deferred comp withheld 1,089.00 Lowell Wakefield Refund - overpayment 2,500.00 Petty Cash Meter deposit & interest 260.63 Chris Kadelbach Equipment maint. 100.00 Petty Cash Postage 844.82 Firstate Federal Savings Payroll deposit plan 4,084.66 First National Bank Payroll deposit plan 1,327.66 Citizens Bank & Trust Co. Payroll deposit plan 6,370.70 PERA PERA withheld & expense 3,664.07 D.O.E.R. SS Ret. Div. FICA withheld & expense 3,809.98 Citizens Bank & Trust Co. Federal tax withheld 4,444.65 Eugene Daggett MMUA' meeting 496.32 Putnam Fund Dist. Employee deferred comp withheld 25.00 ICMA Retirement Corp. Employee deferred comp withheld 1,089.00 Dostal & Oleson Oil Co. Gasoline inventory 4,244.23 Northern States Supply Mdse. 80.35 MN Electric Supply Co. Dist. inv., plant supplies, 83.91 building maint. Internal Auditing Services Collection expense 985.00 Charles Bailly & Co. Audit 4,900.00 J.C. Penney Co., Inc. Uniforms 396.72 Williams Steel & Hardware Mdse. 13.84 Roilgard, Inc. Plant supplies inventory 2,100.00 MN UC Fund Unemployment exp. - T= Alexander 555.35 Petersen - Wisdorf, Inc. Dist. inv., meter inv. 175.55 Quill Corp. Office supplies 259.17 Zee Medical Service Plant supplies 181.05 National Electric, Inc. Transformer maint. 200.00 IBM Corp. Lease 436.00 Graybar Electric Co. Plant supplies 13.70 MN Electric Supply Mdse., dist. inv. 333.30 City of Hutchinson Insurance premium 59,151.00 Raymond Wolter Meter deposit & interest 106.50 Diane Todnem 42.40 Clark Schwantes 159.00 Rob Davis 37.10 Rodney Kirchoff 159.75 Mark Grandgenett 150.75 Ronnie Dearking 42.60 Commissioner of Revenue State tax withheld 1,945.89 1 OCTOBER - ELECTRIC (cont) Bruce Anderson Meter deposit & interest 106.00 Petty Cash Meter deposit & int., office 487.82 supplies, meeting expense Hutch Utilities Due to Natural Gas Division 3,945.45 October labor Hutch Telephone Co. Telephone 1,319.92 MN Electric Supply Co. Mdse. 30.47 MN Benefit Asso. Employee insurance withheld 10.00 AMEX Life Assurance Employee insurance withheld 98.08 James Hoel Power operated equipment maint. 30.00 MN Electric Supply Co. Mdse., dist. inv. 730.90 GTC Auto Parts Meter expense 4.72 General Trading Co. Plant supplies, bldg. maint., tools 254.41 Electronic Center, Inc. Supplies, bldg. maint. 37.79 Rockite Silo URD Service expense 108.45 H & C Electric Supply Dist. inv. 716.37 Graybar Electric Co. Dist. inv. 3,093.46 Ed Davis Business Mach. Office supplies 72.63 Erickson Oil Products Gas 37.77 Burmeister Electric Co. Meter inv., plant supplies 1,004.06 American Public Power Assn. 1987 deed membership 483.20 American Linen Supply Laundry 66.35 American Welding Supply Plant supplies 15.00 Associated Consultants Engineering fees 1,619.30 Best Locking Systems Building maint. 725.51 Franklin Boller Morning Tribune 19.20 Border States Electric Dist. inv. 107.45 Burmeister Electric Co. Meter inv., supplies 1,736.94 C -T Engineering Co. Tools 31.03 Coast -to -Coast Plant supplies, bldg. maint. 33.38 Commissioner of Revenue Sales tax 17,151.26 County Market Coffee 118.74 Culligan Water Conditioner Plant supplies 12.15 The Drawing Board Office supplies 196.78 Earl's Welding /Industrial Plant supplies 33.35 Family Rexall Drug Office supplies 15.00 Farm & Home Distributing Supplies, grounds maint. 68.58 Forbes Auto Store Power operated equipment maint. 6.95 Four Seasons Service Cup inserts 39.80 Graybar Electric Co. Dist. inv. 42.00 Home Bakery Cookies 195.48 Hutchinson Leader Financial Statement 248.45 Hutch Town & Country Tire Truck expense 18.98 Hutch Util - Emp. Fund Employee fund withheld 139.50 Hutch Utilities Engines 13,390.26 14,638.34 Plant & UC 1,248.08 Usage IBM Corp. Maintenance service 9.95 IBEW Local 949 Union dues withheld 456.75 Ink Spots, Inc. Office supplies 6.00 Junker Sanitation Service Refuse service 84.40 J OCTOBER - ELECTRIC (cont) Lakes Gas Co. Leef Bros. McMahon, Hartmann, Amundson Miller, Miller & Mac, Inc. Environmental Quality Bd. MMUA Northern States Supply Paper Service Company Petersen- Wisdorf, Inc. Quast Transfer, Inc. Road Machinery & Supplies Dept. of Labor & Industry 20th Century Plastic UPA Upper Midwest Sales Viking Office Products The Wall Street Journal Welders Supply Co. Wheeler Lumber Operations Zep Manufacturing Co. Medical Insurance Gas Laundry Computer conversion URD service expense Power plant siting program Meeting expense Building maint. Plant supplies Dist. & meter inv. Freight charges Truck maint. Boiler inspection fee Office supplies Purchased power station equip. Mdse. Office supplies Subscription Supplies Dist. inv. Supplies OCTOBER PAYABLES - GAS American Family Life Colonial Life & Accident Firstate Federal Savings Hutchinson Utilities Minvalco PERA United Way American Meter Co. Apollo Piping Supply Energy Economics, Inc. Graphic Controls Corp. Midwest Gas Assn. Minvalco Hutchinson Utilities PERA D. 0. E. R. SS Ret. Div. Citizens Bank & Trust Putnam Fund Dist., Inc. ICMA Retirement Corp. Continental Assurance Co. Continental Assurance Co. Charles Bailly & Co. Fisher Controls J.C. Penney Co. Hutchinson Utilities PERA D. 0. E. R. SS Ret. Div. Employee insurance withheld Employee insurance withheld Deposit to C/D Account Employee utility bills withheld Supplies Employee insurance withheld United Way withheld Meter expense Inv., supplies Supplies Supplies Employee insurance withheld Inventory Payroll deposit plan PERA withheld & expense FICA withheld & expense Federal tax withheld Employee deferred comp withheld Employee deferred comp withheld Life insurance Life insurance Audit Inventory Uniforms Payroll deposit plan PERA withheld & expense FICA withheld & expense 152.54 42.67 2,000.00 129.00 269.71 150.00 215.00 132.52 3,338.08 48.40 21.00 80.00 28.25 475,168.48 28.56 27.00 114.00 20.00 3,228.00 455.40 739.80 22.10 54.00 500.00 540.00 6.15 9.00 24.00 87.65 1,688.40 40.37 60.92 21.66 38.11 2,796.27 850.29 1,058.24 1,074.35 100.00 75.00 68.82 14.85 3,150.00 887.65 198.30 3,111.68 910.84 1,163.22 [I OCTOBER - GAS (cont) Citizens Bank & Trust Federal tax withheld 1,246.32 Putnam Fund Dist., Inc. Employee deferred comp withheld 100.00 ICMA Retirement Corp. Employee deferred comp withheld 75.00 Hutchinson Utilities Payroll deposit plan 2,780.58 PERA PERA withheld & expense 848.59 D.O.E.R. SS Ret. Div. FICA withheld & expense 1,055.28 Commissioner of Revenue State tax withheld 1,547.51 Citizens Bank & Trust Co. Federal tax withheld 1,090.08 Thomas Lyke MMUA meeting 104.40 Minvalco, Inc. Mdse. 24.30 Putnam Fund Dist. Employee deferred comp withheld 100.00 ICMA Retirement Corp. Employee deferred comp withheld 75.00 Apollo Piping Supply Inv. 915.23 Northern States Supply Supplies 37.35 Hutchinson Utilities Share of computer & conversion 16,232.40 Hutchinson Utilities Due to Municipal Electric Plant 5,152.70 October labor Central MN Communications Radio maintenance 319.25 American Meter Company Meter inv., meter maint. 2,208.97 American Welding Supplies Supplies 108.71 Brandon Tire Power operated equipment maint. 49.95 Consolidated Freightways Freight charges 62.95 Hutchinson Leader Financial statement 165.64 Hutch Util - Emp Fund Employee fund withheld 31.50 Hutch Utilities Peak Shaving electric usage 55.21 IBEW Local 949 Union dues withheld 138.25 Lakes Gas Co. Gas 154.64 Minnegasco Inv. 10.00 Minvalco, Inc. Mdse. 9.94 Plaza Hardware & Gifts Supplies 12.85 Circle Hutch Utility Purchased gas 155,901.59 Hutchinson Utilities Due to Municipal Electric Plant 21,016.25 October expenses Crow River Glass Maint. of Reg. Station 15.19 Hutchinson Co -op Truck expense, supplies 169.92 Medical Insurance 53.60 There being no further business, the meeting was adjourned at 4:45 p.m. f Thomas B. Lyke, Secretary ATTEST c' ident E. Daggett, Pres