05-30-2001 HUCMRegular Meeting
May 30, 2001
Members Present: President Paul Ackland; Vice President David Wetterling;
Commissioner Donald Walser; Commissioner Roger Gilmer, Attorney Marc
Sebora; General Manager Clarence Kadrmas; and Business Manager Patrick
Spethman.
President Ackland called the meeting to order at 3:00 p.m.
Vice President Wetterling made a motion to approve the minutes of April 25,
2001, as written. Seconded by Commissioner Gilmer, the motion carried
unanimously.
Commissioner Gilmer made a motion to ratify the payment of bills in the amount
of $2,141,529.03 (detailed listing is in the payables book.) Vice President
Wetterling seconded the motion and it passed unanimously.
After review of the financial statements and budget year -to day, Vice President
Wetterling made a motion to approve them. Seconded by Commissioner Walser
the motion passed unanimously.
Commissioner Gilmer made a motion to approve the list of charge -off accounts
as presented. Commissioner Walser seconded the motion and it passed
unanimously.
Vice President Wetterling made a motion to inform the City of Hutchinson that
Hutchinson Utilities has no objection to approve the Sale of Parcel 13 Plat No. 55
to McLeod County. Commissioner Gilmer seconded the motion and it passed
unanimously.
Commissioner Walser made a motion to accept the quote from Northern Pipeline
Construction for projects not to exceed the budgeted amount. Vice President
Wetterling seconded the motion and it passed unanimously.
Vice President Wetterling made a motion to approve requisition #14492 to Okay
Construction Company to do the 115KV line stringing and tensioning. Seconded
by Commissioner Walser the motion passed unanimously.
General Manager Kadrmas informed the Commission that the ground work for
McLeod Substation has slowed due to rain.
Unit #9 is working well on natural gas but some work is being done to correct the
problem when using #2 Fuel Oil.
Letters to contractors have been sent informing them of our new equipment and
hourly rates.
Council Sebora will find out what was paid for the Walmart property and work
with Tim Hacker and staff to find a fair market value for the McCormick
easement.
Vice President Wetterling made a motion to withdraw Hutchinson Utilities
Commission's present Resolution 5B, allowing investments in Treasury Bills,
Notes and Bonds, in order to allow investing by state statute as outlined by the
League of Minnesota Cities. Seconded by Commissioner Gilmer the motion
passed unanimously.
Commissioner Gilmer made a motion to modify the personnel policy on business
related vehicle operation. Vice President Wetterling seconded the motion and it
passed unanimously.
Commissioner Gilmer made a motion to authorize staff and council to settle the
current EPA fine up to a maximum of $40,000.00. Commissioner Walser
amended the motion to authorize staff and council to reach a settlement up to a
maximum of $55,000.00. The amendment was seconded by Commissioner
Gilmer and passed unanimously. The motion was seconded by Commissioner
Walser and passed unanimously.
There being no further business, Commissioner Walser made a motion to
adjourn. Seconded by Vice President Wetterling the motion passed
unanimously.
David J. Wetterling, Vice President
Attest:
Paul L. Ackland, President
Regular Meeting
May 30, 2001
Members Present: President Paul Ackland; Vice President David Wetterling;
Commissioner Donald Walser; Commissioner Roger Gilmer, Attorney Marc
Sebora; General Manager Clarence Kadrmas; and Business Manager Patrick
Spethman.
President Ackland called the meeting to order at 3:00 p.m.
Vice President Wetterling made a motion to approve the minutes of April 25,
2001, as written. Seconded by Commissioner Gilmer, the motion carried
unanimously.
Commissioner Gilmer made a motion to ratify the payment of bills in the amount
of $2,141,529.03 (detailed listing is in the payables book.) Vice President
Wetterling seconded the motion and it passed unanimously.
After review of the financial statements and budget year -to day, Vice President
Wetterling made a motion to approve them. Seconded by Commissioner Walser
the motion passed unanimously.
Commissioner Gilmer made a motion to approve the list of charge -off accounts
as presented. Commissioner Walser seconded the motion and it passed
unanimously.
Vice President Wetterling made a motion to inform the City of Hutchinson that
Hutchinson Utilities has no objection to approve the Sale of Parcel 13 Plat No. 55
to McLeod County. Commissioner Gilmer seconded the motion and it passed
unanimously.
Commissioner Walser made a motion to accept the quote from Northern Pipeline
Construction for projects not to exceed the budgeted amount. Vice President
Wetterling seconded the motion and it passed unanimously.
Vice President Wetterling made a motion to approve requisition #14492 to Okay
Construction Company to do the 115KV line stringing and tensioning. Seconded
by Commissioner Walser the motion passed unanimously.
General Manager Kadrmas informed the Commission that the ground work for
McLeod Substation has slowed due to rain.
Unit #9 is working well on natural gas but some work is being done to correct the
problem when using #2 Fuel Oil.
Letters to contractors have been sent informing them of our new equipment and
hourly rates. Expected opposition and understanding have - been- r-eceivv�l, , �
Lam'.. Q <''a,a ..b
Council Sebora will find out what was paid for the Walmart property and work
with Tim Hacker and staff to find a fair market value for the McCormick
easement.
Vice President Wetterling made a motion to withdraw Hutchinson Utilities
Commission's present Resolution 5B, allowing investments in Treasury Bills,
Notes and Bonds, in order to allow investing by state statute as outlined by the
League of Minnesota Cities. Seconded by Commissioner Gilmer the motion
passed unanimously.
Commissioner Gilmer made a motion to modify the personnel policy on business
related vehicle operation. Vice President Wetterling seconded the motion and it
passed unanimously.
Commissioner Gilmer made a motion to authorize staff and council to settle the
current EPA fine up to a maximum of $40,000.00. Commissioner Walser
amended the motion to authorize staff and council to reach a settlement up to a
maximum of $55,000.00. The amendment was seconded by Commissioner
Gilmer and passed unanimously. The motion was seconded by Commissioner
Walser and passed unanimously.
There being no further business, Commissioner Walser made a motion to
adjourn. Seconded by Vice President Wetted the motion passed
unanimously. %
Attest: cx•w "'
Paul L. Ackland, President
id J. WRtterlina-.-Wce President
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April 6, 2001
OFFER TO PURCHASE
STATEMENT OF COMPENSATION
Mr. John Rodeberg
City of Hutchinson
111 Hassan Street SE
Hutchinson, MN 55350
RE: Apparent Landowner on CSAH 25
Project 5025, Plat 55
Dear Mr. Rodeberg:
The McLeod County Highway Department hereby offers all interested parties who may
have an interest in the real estate to be acquired the sum of 1,014.0 , which has been
estimated to be just compensation for such property and rights based upon the fair market
value for the property. A summary of the amount set out above as just compensation is
as follows:
(a) Identification of the real property to be acquired - parcel no. 13, plat no. 55
(b) Types of interest being acquired.
(1) Permanent Construction Easement
(c) Summary of fair market value and offer:
1) Land & Improvements $ 1,014.00
2) Damages (Claim Voucher) $ -0-
3) Total $ 1,014.00
This offer is based on a review and analysis of an appraisal(s) of this property by
a qualified appraiser(s).
You will have a reasonable length of time to consider the offer. To aid in your decision
you may wish to secure your own appraisal. Minnesota law provides for reimbursement
in an amount not to exceed $500.00 for the actual cost of an appraisal of property
acquired by direct purchase. Reimbursement cannot be made, however, until your
property is acquired.
If you decide to accept the offer, the parcel will be acquired by direct purchase and you
will be paid upon satisfactory evidence of merchantable title. If the offer is unacceptable
you may have your property acquired in an eminent domain proceedings.
I.D. NUMBER : #5
McLEOD COUNTY RECORDERS CERTIFICATE OF TITLE
I hereby certify that I have examined the title to the real estate herein described as shown by the records
in the office of the Recorder and Registrar of Titles of McLeod County, Minnesota and as shown by said
records it is my opinion that title to the following described tract:
The North 838.29 feet of the East 705.00 feet of the Southeast Quarter of the Northeast Quarter in
Section 32, Township I t6 North of Range 29 West.
NAME INTEREST DATE ACQUIRED BOOKIPAGE SPOUSE
City of Hutchinson FEE 2 -16 -2000 Document 8301149
During the past rive years the title to said tract was in the following person if different than above:
Malcolm W, Schwarze FEE 2 -29 -1980 181 Deeds, page 616
Ruth Schwarze FEE 2 -29 -1980 181 Deeds, page 616
Husband and wife
SUBJECT TO THE FOLLOWING
NSP Easement. Book 32 Misc., page 1.07. See copy attached to parcel #3.
Drainage Agreement. Book 89 Misc., page 97. See copy attached to parcel #2.
Easement. Stated on Warranty Deed Document #301149. Over the South 67.04 feet of
this parcel for purpose of construction, maintaining and repairing drain tile.
LAST TRACT ENTRY OR MEMORIAL DOC BK /PAGE DOC NO
Quit Claim Deed Document 8302319
McLEOD County Recorder Date
I
PERMANENT ROADWAY EASEMENT
McLeod County State Aid Road 25 Project 5025 Par. 13, Plat 55
City of Hutchinson
being the owner, in fee simple, of the real estate hereinafter described, hereby grants unto McLeod County, its
successors and assigns, the hereinafter described permanent roadway easement for the sum of One Thousand
Fourteen Dollars and No Cents ($1,014.00) and other good and valuable considerations.
The said permanent roadway easement in McLeod County in the State of Minnesota is described as follows:
RACT DESCRIPTION
The North 838.29 feet of the East 705.00 feet of the Southeast Quarter of the Northeast Quarter in Section 32,
Township 116 North of Range 29 West.
PERMANENT ROADWAY EASEMENT DESCRIPTION
Parcel 13 of MCLEOD COUNTY HIGHWAY RIGHT OF WAY PLAT NO. 55.
Further, the owner agrees not to construct fences, plow or perform any detrimental operation within the permanent
roadway easement, except the owner is hereby permitted to plant and harvest hay crops within the limits of the
permanent roadway easement until such time as Mcleod County directs otherwise.
Further, it is understood that McLeod County shall have the right to use and remove all earth and other materials
lying within the limits of the permanent roadway easement.
Further, it is understood that McLeod County may permit cities, townships, utility companies and others to place
and maintain power, telephone, gas, tile, water, sewer and other utilities above and/or under the ground within the
limits of the permanent roadway easement. The maintenance of such utilities may include the cutting or clearing of
trees and other vegetation, within and above the permanent roadway easement, that would be necessary for the
oper operation of such utilities.
rther, the owner, his successors and assigns, hereby release the County of McLeod, its officers and agents, from
any and all liability and claims concerning the hereinbefore described permanent roadway easement and the
owner's adjoining premises that may result by virtue of the construction, maintenance, and use of a public roadway
over and upon the herein before described permanent roadway easement.
Dated this day of 720
F4
STATE OF )Ss
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
Title of Officer or Agent)
Name of Officer of Agent, Title of Officer or Agent)
a
(State or Place of incorporation)
royl
by
(Name of Corporation Acknowledging)
20 by
corporation, on behalf of corporation
Notary Public
My Commission ex
This Instrument was Drafted By:
Michael Junge
McLeod County, Glencoe, MN
UNCOMPLICATED ACQUISITION APPRAISAL
Project CSAH #25
Parcel No. 13 Plat No. 55
Owner City of Hutchinson
Property Address
PERMANENT EASEMENT TO BE ACQUIRED:
Zoning Agricultural
Present Use Agricultural
Highest & Best Use:
Before Agricultural
After Agricultural
0.520 Acres @ $1.950 /ac. _ $1,014.00
Acres @ _
Total $1,014.00
TEMPORARY EASEMENT TO BE ACQUIRED:
Acres @ _
Acres @
Total
IMPROVEMENTS TO BE ACQUIRED:
Description of Improvement Value
Total
DAMAGES TO REMAINDER:
Description of Damaged Items Value
Total
Total estimated fair market value of acquisition
and remainder damage (rounded) Total $1014.00
Appraiser --4
Date of Signature,
-59-
Clarence,
Listed are the quotes for Directional Boring for projects planned for the construction
year 2001. The total footage for three phase and single -phase conductor is approximately
11,000 linear feet. Directional boring of conduit or natural gas pipe is approximately
2000'.
Quotes:
Northern Pipeline Construction
Utili -Trax Contracting
Northern Construction Inc.
$9.00 ft for Conductor
$12.00 ft for 8" Duct or Gas pipe
$9.00 ft for 6" Duct or Gas pipe
$8.50 ft for 4" Duct or Gas pipe
$8.25 ft for 2" Duct or Gas pipe
$8.00 ft Single Ph 1/0
$11.00 ft Three Ph 1/0
$11.00 ft Three Ph 4/0
$11.00 ft Three Ph 500 MCM
$8.00 ft for 2" Duct or Gas pipe
$11.00 ft for 4" Duct or Gas pipe
$14.00 ft for 6" Duct or Gas pipe
$15.00 ft for 8" Duct or Gas pipe
$10.00 ft Three Ph 500 MCM
$10.00 ft for 2" Duct or Gas pipe
$12.50 ft for 4" Duct or Gas pipe
$15.00 ft for 6" Duct or Gas pipe
$20.00 ft for 8" Duct or Gas pipe
Based on the quotes indicated, I would like to recommend that Hutchinson Utilities
Commission award Northern Pipeline Construction the Directional Boring projects for
the construction year 2001.
Donald P. Nelson
Manager - Electric Division
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Some representatives of financial institutions maintain that they do
not own or control other branches of the same institution. However,
it should be noted that the State Auditor does not agree with this
interpretation. Cities should not assume that placing collateral in a
different branch of the same bank will be appropriate.
Part III. Investments
Many cities invest idle funds in order to gain the best returns from
their money. Generally, many investments will see higher returns
than the amount of interest normally given on deposits. Although
the primary goal should always be to safeguard the principal, another
goal is to see returns that keep up with inflation and provide a
market rate of return. If returns exceed this, the city can actually
make a profit. However, with higher returns can also come greater
risks.
A. Authority for investments
Minn. Stat. § 118A.04, Any public funds may be invested if not needed for other purposes
subd. 1
or restricted for other purposes. Such investments are subject to
certain conditions, depending upon the instrument that is used.
B. Broker's notification and certification
Minn. Stat. § 118A.04, All government entities must provide a copy of the broker
subd..9
notification and certification form to their brokers annually. A
"broker" includes anyone who transfers, purchases, sells, or obtains
securities for or on behalf of a government entity and is one of the
following:
♦ A broker
♦ A broker - dealer
♦ An investment advisor
♦ An agent of a government entity
See Part IV. Sample A city cannot enter into a transaction with a broker until the form has
broker certification form
been completed by the broker and returned to the city. The form is
designed to document compliance with the following requirements:
City Deposits and Investments 12
Minn. Stat. § 118A.04, The broker must be given a written statement of investment
subd. 9(b)
restrictions and notification that all future investments are to
be made in accordance with Minnesota statutes governing the
investments of public funds. This must be done annually.
Minn. Stat. § 118A.04, The broker must acknowledge the receipt of the investment
subd. 9(c) restrictions. This must be done annually.
See Part IV. Sample A current copy of the form is available from the State Auditor's
broker certifrcation form
Office. A copy is also included with this memo.
C. Permitted investments
Cities are authorized to invest in a number of different types of
investments. These generally include government securities (U.S.,
state, and local), some commercial paper, time deposits, certain
temporary general obligation bonds, and some debt service funds.
Included under some of these instruments are U.S. Treasury and
government agency securities, banker's acceptances, money market
funds, mutual funds, and repurchase and reverse repurchase
agreements. Please note that many of these instruments must meet
certain criteria. These are discussed in further detail in the following
sections.
1. United States government securities
Minn. Stat. § 118A.04, 'These are direct debt issues of the federal government. Public funds
subd. 2
may be invested in these instruments, which include the following:
♦ Government bonds;
♦ Notes;
♦ Bills;
♦ Mortgages (except for high -risk mortgage- backed securities);
♦ Other securities which are direct obligations or are
guaranteed or insured issues of the United States, its
agencies, its instrumentalities, or organizations created by an
act of Congress.
Minn. Stat. § 118A.04, A certificate of deposit secured by a letter of credit from a home loan
subd. 2
bank is not permitted as a direct investment.
- - - _ __ _ -- - - -- - - -- -- - - - - -- — - -- - --------------- --
City Deposits and Investments 13
2. State and local municipal securities
Minn. Stat. § 118A.04, Funds may be invested in the following types of state and local
subd. 3
securities:
♦ A general obligation of any state or local government with
taxing powers which is rated "A" or better by a national bond
rating service;
♦ A revenue obligation of any state or local government with
taxing powers which is rated "AA" or better by a national
bond rating service; .
♦ A general obligation of the Minnesota Housing Finance
agency which is a moral obligation of the state of Minnesota
and is rated "A" or better by a national bond rating agency.
3. Commercial paper
Minn. Stat. § 118A.04, These are short-term unsecured promissory notes that are issued by
subd. 4
corporations. Cities may invest in commercial paper issued by U.S.
corporations or their Canadian subsidiaries. These must be rated in
the highest quality category by at least two nationally recognized
rating agencies and must mature in 270 days or less.
4. Time deposits
Minn. Stat. § 118A.04, Examples of time deposits include savings accounts or certificates of
subd. 5 —also see Part II
deposits that are made for a fixed term, but can be withdrawn early
with notice. Funds may be invested in time deposits that are fully
insured by the FDIC or in bankers acceptances of United States
banks.
Minn. Stat. § 118A.04, A certificate of deposit secured by a letter of credit from a home loan
subd. 2
bank is not permitted as a direct investment.
5. Temporary general obligation bonds
Minn. Stat. § 118A.04, These are temporary bonds that are guaranteed by the full faith and
subd. 7
credit of a public entity. Funds may be invested in general
obligation temporary bonds of the same governmental entity that
were issued under Minn. Stat. §§ 429.091, subd. 7; 469.178, subd, 5;
or 475.6 1, subd. 6. This would generally include the following types
of bonds:
__ sits - - -- --- - -- -- - - - - -- - - -- - - -- -- - - - -- - -- -- - - - - -- -- - - - -- - -- -
City Deposits - and Inn vestments 14
See Minn. Stat. § 429.091,
General obligation temporary improvement bonds;
subd. 7
See Minn. Stat. § 469.178,
Temporary bonds issued for tax increment financing
subd.5
economic development purposes that mature within three
years. These bonds must have been issued in anticipation of
the issuance of other types of bonds. These other types of
bonds include general obligation bonds of a city. Also
included are revenue bonds and general obligation bonds of
an EDA, HRA, Port Authority, and other similar entities;
See Minn. Stat. § 475.61,
Temporary obligations issued for any lawful purpose that
subd. 6
mature in three years or less. These bonds must have been
issued in anticipation of the issuance of permanent
obligations.
6. Debt service funds
Minn. Stat. § 118A.04, Money held in a debt service fund may be used to purchase general
subd. 8
or special obligations of an issue that is payable from the fund. The
price may include a premium. Alternatively, such funds may be
used to redeem any obligation of such issue prior to maturity in
accordance with its terms. However, even though the securities
representing this type of investment may be sold by the city at any
time, the money received must remain part of the fund until used for
the purpose for which the fund was created. Any obligation held in a
debt service fund from which it is payable may be canceled at any
time unless prohibited by a resolution or other instrument securing
obligations payable from the fund.
D. Permitted investment contracts and agreements
There are also some types of investment contracts and agreements
that cities may enter. These include certain types of repurchase
agreements, reverse repurchase agreements, securities lending
agreements, Minnesota joint powers investment trusts, and
guaranteed investment contracts. Certain criteria must be met in
order to use these vehicles.
1. Repurchase agreements
A repurchase agreement is the sale of a government security by a
banker or dealer who agrees to buy it back later. An investor who
buys the security is paid interest for the time that he or she holds the
security. The security usually does not reach its maturity date until
after the bank or dealer repurchases the security.
City Deposits and Investments 15
Minn. Stat. § 118A.05, Repurchase agreements may be entered into if they consist of
subd. 2. Also see Minn.
Stat. § 118A.04 collateral that is allowed as a direct city investment. The agreement
can only be made with one of the following entities:
♦ A financial institution qualified as a city depository;
♦ A financial institution which is a member of the Federal
Reserve System and whose combined capital and surplus is
$10,000,000 or more;
♦ A primary reporting dealer in United States government
securities to the Federal Reserve Bank of New York; OR,
♦ A securities broker - dealer licensed pursuant to chapter 80A,
or an affiliate of it, regulated by the Securities and Exchange
Commission (SEC) and maintaining a combined capital and
surplus of $40,000,000 or more exclusive of subordinate
debt.
2. Reverse repurchase agreements
Minn. Stat. § 118A.05, A reverse repurchase agreement is very similar to a repurchase
subd. 2.
agreement. But with a reverse repurchase agreement, the city is the
one who is selling the government security to the bank or dealer and
buying it back later. Reverse repurchase agreements are often used
to make cash available without suffering a penalty for early
withdrawal of the investment. Reverse repurchase agreements may
only be made with the entities that are permitted to make repurchase
agreements with cities (see previous section).
See following section. A reverse repurchase agreement may only be entered into for a
period of 90 days or less and only to meet short-term cash flow
needs. In no case may the proceeds from a reverse repurchase
agreement be used for investments except for securities lending
agreements.
3. Securities lending agreements
Minn. Stat. § 118A.05, Securities lending agreements are similar to reverse repurchase
subd. 3
agreements. An example seems the best way to illustrate how these
agreements work. Initially, the city's securities are held by a bank
and are "loaned" to a third party. The third party would provide
cash or securities to the bank to collateralize the loan. The city and
the bank would split the interest that is received on the loan.
City Deposits and Investments 16
♦ Repurchase agreements
♦ Reverse respurchase agreements
♦ Other securities lending agreements
♦ Minnesota joint powers investment trusts
♦ Guaranteed investment contracts
♦ U.S. securities
♦ State and local securities
♦ Commercial paper
♦ Time deposits
♦ Temporary obligation bonds
♦ Debt service funds
4. Minnesota joint powers investment trusts
Laws 1997, Ch. 219, See. Cities may enter into agreements or contracts for shares of a
1, which amends Minn.
Stat. § 118A.05, subd. 4 Minnesota joint powers investment trust, units of a short term
investment fund, and shares of registered investment companies.
These entities must meet certain criteria.
City Deposits and Investments 17
Securities lending agreements may be entered into with a financial
institution that has its principle executive office in Minnesota and
meets one of the the following criteria:
Minn. Stat. § 118A.05,
♦ It must be a financial institution qualified as a "depository"
subd. 2(1)
of public funds of the government entity; OR,
Minn. Stat. § 118A.05,
♦ It must be a member of the Federal Reserve System and have
subd. 2(2)
combined capital and surplus equal to at least $10,000,000.
Minn. Stat. § 118A.05,
Securities lending transactions may also be entered into with the
subd. 3 and subd. 2
same type of entities that can make repurchase agreements and
reverse repurchase agreements with cities (see previous sections).
Minn. Stat. §§ 118A.05
Note that the collateral instruments must meet the same criteria as
and 118A.04
collateral as they must meet in order to be a direct city investment.
In other words, the collateral must be an instrument in which the city
could directly invest. The collateral for securities lending
agreements are therefore restricted to the following types of
securities:
♦ Repurchase agreements
♦ Reverse respurchase agreements
♦ Other securities lending agreements
♦ Minnesota joint powers investment trusts
♦ Guaranteed investment contracts
♦ U.S. securities
♦ State and local securities
♦ Commercial paper
♦ Time deposits
♦ Temporary obligation bonds
♦ Debt service funds
4. Minnesota joint powers investment trusts
Laws 1997, Ch. 219, See. Cities may enter into agreements or contracts for shares of a
1, which amends Minn.
Stat. § 118A.05, subd. 4 Minnesota joint powers investment trust, units of a short term
investment fund, and shares of registered investment companies.
These entities must meet certain criteria.
City Deposits and Investments 17
a. Investment trust shares
Cities can only use this if the joint powers investment trust is
restricted to the following types of investments:
Minn. Stat. § 118A.04
The League's 4M Fund and 4M Plus Fund are joint powers
U.S. securities
investment trusts. The 4M Fund is a short-term investment option
♦
designed specifically for Minnesota municipalities to provide safety,
Contact Stefanie Adams
daily liquidity, and a competitive yield. The 4M Plus Fund is a
of Insight Investment
complementary money market option designed to provide safety and
Management
7275 or i- 800 - 33 33 -083-08 13 3
hd geld when compared to the traditional 4M Fund. The
an enhanced col�
for information about the
4M Plus Fund requires that deposits be maintained for at least
4M Fund and 4M Plus
Fund.
30 days with a 24 -hour advance withdrawal notice.
a. Investment trust shares
Cities can only use this if the joint powers investment trust is
restricted to the following types of investments:
Minn. Stat. § 118A.04
♦
U.S. securities
Minn. Stat. § 118A.04
♦
State and local securities
Minn. Stat. § 118A.04
♦
Commercial paper
Minn. Stat. § 118A.04
♦
Time deposits
Minn. Stat. § 118A.04
♦
Temporary obligation bonds
Minn. Stat. § 118A.04
♦
Debt service funds
Laws 1997, Ch. 219, Sec. ♦ Any other security listed under joint powers investment trusts
1, which amends Minn.
Stat. § 118A.05, subd. 4
b. Money market funds
Laws 1997, Ch. 219, See. Cities may invest in shares of an investment company that is
1, which amends Minn.
Stat. § 118A.05, subd. 4 registered under the Federal Investment Company Act of 1940 and
holds itself out as a money market fund if BOTH of the following
conditions are met:
17 CFR § 270.2a -7 ♦ It is a money market fund meeting the conditions of rule 2a -7
of the Securities and Exchange Commission (SEC); AND,
♦ It is rated in one of the two highest rating categories for
money market funds by at least one nationally recognized
statistical rating organization.
C. Investment company shares
Laws 1997, Ch. 219, See. Cities may also enter into agreements or contracts for shares of an
1, which amends Minn.
Stat. § 118A.05, subd. 4 investment company that meets BOTH of the following criteria:
City Deposits and Investments 18
♦ It is registered under the Federal Investment Company Act of
1940, AND,
♦ Its shares are registered under the Federal Securities Act of
1933.
In addition, the investment company's fund must meet ALL of the
following criteria:
♦ The fund receives the highest credit rating;
♦ The fund is rated in one of the two highest risk categories by
at least one nationally recognized statistical rating
organization; AND,
♦ The fund is invested in financial instruments with a final
maturity no longer than 13 months. (Note that the State
Auditor's Office does not see this new requirement as
mandating the sale of mutual funds that were lawfully
purchased prior to January 1, 1997.)
5. Guaranteed investment contracts
Minn. Slat. § 118A.05, Agreements or contracts for guaranteed investment contracts may
subd. 5
be entered into if they are issued by or guaranteed by any of the
following:
♦ United States commercial banks
♦ Domestic branches of foreign banks
♦ United States insurance companies or their Canadian
subsidiaries
Minn. Stat. § 118A.05, The credit quality of the issuer's or guarantor's short-term and long -
subd. 5
term unsecured debt must be rated in one of the two highest
categories by a nationally recognized rating agency. Should the
issuer's or guarantor's credit quality be downgraded below "A," the
government entiry must have withdrawal rights.
E. Safekeeping of investments, contracts, and
agreements
Minn. Stat. § 118A.06 Investments, contracts, and agreements may be held in safekeeping
by any of the following:
City Deposits and Investments 19
Memo
To:
From:
Dated:
RE:
-andum
All Employees
Clarence Kadrmas
General Manager
June 1, 2001
Policy Update to Business Related Vehicle Operation
The following is the update to the policy regarding transportation of
employees for the following purposes:
a) Training Seminars
b) Conferences
c) Mutual Aid
If air travel is required, employee(s) shall be responsible for their
transportation to /from the airport. If employee utilizes a personal vehicle
he /she shall be reimbursed at current IRS rates. Prior approval must be
received from the Department Manager for any other modes of
transportation (i.e. taxi, shuttles).
If the Department Manager deems it necessary for the employee(s) to drive
to the above - mentioned events, the following options are available:
i) if available, the Department Manager shall provide a HUC vehicle,
or
2) if no HUC vehicle is available, employee shall provide his /her own
transportation. If employee uses a personal vehicle he /she shall
be reimbursed at current IRS rates. Prior approval must be
received from the Department Manager for any other modes of
transportation (i.e. taxi, shuttles).