12-09-1986 HUCM1
Special Meeting
December 9, 1986
All Commissioners were present; also present were Mgr. Hakel,
Counsel Peterson, Brad Farnham of Juran & Moody, Ivan Larson,
Jane Hodgins, Hutchinson Leader staff writer and Sue Winter.
President Daggett called the meeting to order at 12:15 p.m.
Brad Farnham was instructed to open and read bids for the sale
of $3,920,000 Electric Utility Revenue Bonds of 1986. Attached
to the face of these minutes is the tabulation of bids.
After reviewing the bids, a motion. was made by Commissioner
Beatty, seconded by Commissioner Lyke to accept the bid of
Clayton Brown & Associates at 5.4912% net interest rate.
Motion was unanimously carried.
President Daggett reviewed the proposed union contract containing
the following changes:
1. Two (2) year term (effective January 1, 1987 thru
December 31, 1988)
2. Wage increase of 3.25% for 1987 and 3.25% for 1988
3. The employer will provide all employer required clothing
and equipment. An amount not to exceed $100 per year
will be allowed toward uniform wearing apparel of
office employees. The items of uniform wearing apparel
eligible for the reimbursement shall be agreed upon
between employees and general manager.
A motion was made by Commissioner Lyke, seconded by Commissioner
Beatty to accept the proposed contract between Hutchinson Utilities
Commission and International Brotherhood of Electrical Workers.
Motion was unanimously carried.
Mgr. Hakel presented a personnel structure chart (copy attached).
A motion was made by Commissioner Beatty, seconded by Commissioner
Lyke to approve the chart. Motion was unanimously carried.
Mgr. Hakel informed the Commission that Circle Pines cannot
meet on December 23, 1986. The meeting will be rescheduled for
January 6, 1987 at noon.
13
% I/
Counsel Peterson requested an increase in estimated fees for
bond issue from $5,000 to $8,000. His retainer fee would
remain $400 per month. After discussion, a motion was made
by Commissioner Lyke, seconded by Commissioner Beatty to
increase estimated bond issue fees to $8,000 with the under-
standing to negotiate the fee if unusual circumstances arise.
Motion was unanimously carried.
There being no further business, the meeting was adjourned
at 1:05 p.m.
ATTEST yr,
E. Daggett, Pr s'dent
Thomas B. Lyke, S
I
SUMMARY OF BIDS
HUTCHINSON UTILITIES COMMISSION
OF THE CITY OF HUTCHINSON, MINNESOTA
$3,920,000
ELECTRIC REVENUE BONS OF 1986
i0 1 1,11 X :44 0 0 6 ,,14
CLAYTON BROWN & ASSOCIATES, INC. 5.49%
PRUDENTIAL -BACHE SECURITIES, INC. 5.54%
PIPER, JAFFRAY $ HOPWOOD INCORPORATED 5.69%
JOHN NUVEEN 8 CO. INCORPORATED 5.71%
DAIN BOSWORTH INCORPORATED 5.78%
CLAYTON BROWN & ASSOCIATES, INC.
4.25%
- 1988
4.50%
- 1989
4.75%
- 1990
5.00%
- 1991
5.00%
- 1992
5.25%
- 1993
5.50%
- 1994
5.50%
- 1995
HUTCHINSON UTILITIES COMMISSION
OF THE CITY OF HUTCHINSON, MINNESOTA
$3,920,000
ELECTRIC REVENUE BONDS OF 1986
AWE:
DATE OF SALE:
RATING:
4.40% - 1988
CLAYTON BROWN d ASSOCIATES, INC.
TUESDAY, DECEMBER 9, 1986
A 1
810DER
INTEREST RATE
NET INTEREST COST
Er I ey d Co.
5.20% - 1991
(RATE)
CLAYTON B ROW N b
4.25% - 1988
5.60% - 1993
ASSOCIATES, INC.
4.50% - 1989
Blunt, Ellis d Loewl
4.75% - 1990
PURCHASE PRICE: $3,876,880.00 $1,293,625.00
(5,711)
Incorporated
5.00% - 1991192
Griffin, Kubik, Stephens
5.25% - 1993
d Thompson, Inc.
5.50% - 1994/95
PURCHASE PRICE:
$3,849,703.49 $1,243,209.01
(5.49%)
PRUDENTIAL -BACHE
4.40% - 1988
SECURITIES, INC.
4.60% - 1989
Shearson Lehman Brothers
4.80% - 1990
Inc.
5.00% - 1991
Smith Barney, Harris
5.25% - 1992
Upham d Co.
5.45% - 1993
Incorporated
5.65% - 1994
Drexel Burnham Lampert
5.80% - 1995
Inc.
PURCHASE PRICE:
$3,878,840.00 $1,254,842.50
(5.54 %)
PIPER, JAFFRAY & HOPWOOD 4.25% - 1998
INCORPORATED 4.60% - 1989
E.F. Hutton b Company 4.90% - 1990
Inc. 5.20% - 1991
Robert W. Baird b 5.40% - 1992
Company, Inc. 5.60% - 1993
Craig- Hailum, Inc. 5.80% - 1994
Dean Witter Reynolds Inc. 6.00% - 1995
Dougherty, Dawkins, PURCHASE PRICE: $3,876,880.00 $1,289,320.00
Strand d Yost, Inc. (5.69%)
John G. Kinnard d Co. Inc.
Marcotte, Hume d Associates, Inc.
Miller d Schroeder Financial Inc.
Moore, Juran and Company, Inc.
M.H. Novick d Company, Inc.
JCHN NUVEEN d CO.
4.40% - 1988
INCORPORATED
4,70% - 1989
Hutchinson, Shockey,
5.00% - 1990
Er I ey d Co.
5.20% - 1991
5.40% - 1992
5.60% - 1993
5.80% - 1994 '
6.00% - 1995
-
PURCHASE PRICE: $3,876,880.00 $1,293,625.00
(5,711)
PAC E 2
HUTCHINSON UTILITIES COMMISSION OF THE CITY OF HUTCHINSON, MINNESOTA
$3,920,000 ELECTRIC REVENUE BONDS OF 1986
BIDDER
INTEREST RATE
DAIN BOSWORTH INCORPORATED
4.50 -
1988
Cron 1 n 3 Company, Inc.
4.75% -
1989
Miller Securities, Inc.
5.00% -
1990
Paine Webber, Inc.
5.20% -
1991
5.40% -
1992
5.60% -
1993
5.805 -
1994
6.005 -
1995
PURCHASE
PRICE:
NET INTEREST COST
(RATE)
$3,863,160.00 $1,308,802.50
(5.78%)
1
537L
EXTRACT OF MINUTES OF MEETING OF THE
HUTCHINSON UTILITIES COMMISSION OF THE CITY OF
HUTCHINSON, MINNESOTA
HELD: DECEMBER 9, 1986
Pursuant to due call and notice thereof, a special
meeting of the Hutchinson Utilities Commission (the
"Commission) of the City of Hutchinson. McLeod County,
Minnesota, was duly held at the Hutchinson Utilities Building
in said City on the 9th day of December, 1986, at 12-15 o'clock
P.M. for the purpose of opening, considering bids for and
awarding the sale of $3,920,000 Electric Utility Revenue Bonds
of 1986 of the City.
The following members were present: all
and the following were absent: none
The Secretary of the Commission presented affidavits
showing publication of notice of call for bids on $3,920,000
Electric Utility Revenue Bonds of 1986 of the City, for which
bids were to be received at this meeting, in accordance with
the resolution adopted by the Commission on November 24, 1986.
The affidavits were examined, found to comply with the provi-
sions of Minnesota Statutes, Chapter 475, and were approved and
ordered placed on file.
The Commission proceeded to receive and open bids for
the sale of the bonds. The following bids were received:
Bidder Interest Rate Net Interest Cost
n
uE
:. The Commission then proceeded to consider and discuss
the bids, after which member Beatty introduced the
following resolution and moved its adoption:
RESOLUTION ACCEPTING BID ON SALE OF
$3,920,000 ELECTRIC UTILITY
REVENUE BONDS OF 1986,
PROVIDING FOR THEIR ISSUANCE
AND PROVIDING FOR DISCHARGE OF PRIOR BONDS
WHEREAS:
A. The City of Hutchinson (the "City ") owns and
operates a municipal electric light and power plant system as a
revenue producing public utility, and there are outstanding
$625,000 Light and Power Plant Revenue Bonds of 1976 (the
"Prior Bonds "), the interest and principal of which constitute.
prior liens upon the net revenues of said facility;
B. The Commission has heretofore determined that it
is necessary and expedient to issue on behalf of the City
$3,920,000 Electric Utility Revenue Bonds of 1986 (hereinafter
referred to as the "Bonds" or individually as "Bond "), pursuant
to Minnesota Statutes, Chapters 453 and 475, the City Charter
and a resolution (the "Sale Resolution ") adopted by the
Commission on November 24, 1986 to finance improvements to said
municipal electric light plant and system; and
C. In the Sale Resolution the Comission covenanted
to discharge the Prior Bonds prior to the issuance of the
Bonds.
NOW THEREFORE BE IT RESOLVED by the Hutchinson
Utilities Commission of the City of Hutchinson, Minnesota, as
follows:
1. That the bid of
(the "Purchaser ") to purchase $3,920,000 Electric Utility
Revenue Bonds of 1986 of the City, in accordance with the
notice of bond sale, at the rates of interest hereinafter set
forth, and to pay therefor the sum of $ , plus
interest accrued to settlement, is hereby found, determined and
declared to be the most favorable bid received, and is hereby
accepted and the Bonds are hereby awarded to said bidder. The
Secretary of the Commission is directed to retain the deposit
of said bidder and to forthwith return the good faith checks or
drafts to the unsuccessful bidders. The Bonds shall be payable
as to principal and interest at
, or any successor Paying Agent duly
appointed at the Bidder's discretion with approval by the
Commission.
2. The Bonds shall be dated December 1, 1986, as the
date of original issue and shall be issued forthwith 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. 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
3. The Bonds are issued to provide funds for the
improvement of municipal electric light plant and system in the
City (the "Improvements "). The total cost of the Improvements,
which shall include all costs enumerated in Minnesota Statutes,
Section 475.65, is estimated to be at least equal to the amount
of the Bonds herein authorized. Work on the Improvements shall
proceed with due diligence to completion.
4. The Bonds shall bear interest payable
semiannually on June 1 and December 1 of each year commencing
December 1, 1987, at the respective rates per annum set forth
opposite the maturity years as follows:
Maturity Years Interest Rates
1988
1989
1990
1991
1992
1993
1994
1995
5. There has heretofore been presented to the
Commission a form of Escrow Agreement (the "Escrow Agreement ")
to be entered into by the Commission and
(the "Escrow Agent ") to provide tor the
discharge of the Prior Bonds. The Agreement is hereby
approved, and the President and Secretary of the Commission
are hereby authorized and directed to
Agreement on behalf of the Commission
issuance of the Bonds, there shall be
Agent from the Surplus Account in the
in an amount sufficient to discharge
provided in the Escrow Agreement.
execute the Escrow
and the City. Prior to
transferred to the Escrow
Light and Power Fund cash
the Prior Bonds, all as
6. Notwithstanding the provisions in the Sale
Resolution to the contrary, if the Bonds are purchased at a
discount greater than 2% of the face amount of the Bonds, (a)
the amount of Bond proceeds used to fund the Reserve Account
(as defined in the Sale Resolution) shall not exceed 10% of the
difference between the face amount of the Bonds and the
discount at which the Bonds were purchased and (b) sums in the
Surplus Account (as defined in the Sale Resolution) shall on or
before issuance of the Bonds be credited to the Reserve Account
in an amount which, together with Bond proceeds used to fund
the Reserve Fund, equals $392,000 (i.e. 10% of the face amount
of the Bonds).
The motion for the adoptin of the foregoing
resolution was duly seconded by member Lyke
and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed
and adopted.
M
jA
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
Commission of said City, duly called and held on the date
therein indicated, insofar as such minutes relate to the
opening and considering of bids for, and awarding the sale of
$3,920,000 Electric Utility Revenue Bonds of 1986 of said City.
WITNESS my hand as such Secretary this 9th day of
December , 1986.
Secretary of the Hutc Anson
Utilities Commission
is
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