12-03-1970 HUCMD
1
1
Russell Hurt
Municipal Electric Plant
Am. Public Gas Association
Cory Coffee Service Plan Inc.
Hoffman Plumbing & Heating
Sid Harvey's
Mueller Company
Fisher Controls C ,-mpany
Municipal Electric Plant
125
Salary
140.85
102
28.52
930
278.80
926
51.90
376 880
7.40
488
40.65
394 154.3
404.19
154.2
359.61
902 903
637.00
There being no further business, motion was made, seconded and
unanimously carried to adjourn the meeting.
i
H. P. uade�,reside nt .
r
• • , �,. , y
t'l
Special Meeting.
December 3, 1970.
A Special Meeting of the Hutchinson Utilities Commission was held
on December 3, 1970 at one thirty P. M.
All Commissioners were present; also Mr. Joseph Casey, representative
of the Carleton D. Beh Company.
-n
D
O
Z
c
cn
X
0
Resolution Employing the Carleton D. Beh Co..,
u,
o
Investment Securities Firm, Des Moines Bldg.,
v
m
Des Moines, Iowa, to Act as Fiscal Agents for
CD
0
the Hutchinson Utilities Commission, Hutchinson,
ch
o
Minnesota, for the Purpose of Financing Improve-
c
ments to the Municipal Electric Plant, Hutch.-
o
o
inson, Minnesota.
U)
CD
o'
zC
WHEREAS, The Hutchinson Utilities Commission, Hutchinson,
0
Cn
°o
Minnesota, has entered into contracts for the purchase of an
SO)
additional generating unit and auxiliaries to increase the firm
o
generating; capacity of the Municipal Electric Plant to meet the
-0
demands of drastically increased firm light and power require-
Q
ments of the City of Hutchinson, Minnesota; and
WHEREAS , the current financial status of funds on hand
N
o
'
N)
and available to the Commission for said purchase of electric plant
rn
0
extensions and improvements makes it mandatory to anticipate future
plant earnings and borrow approximately X2,000,000.00 at this time
and to issue and sell revenue bonds secured by the future net
operating revenues of said plant; and
WHEREAS, the President and the Hutchinson Utilities Commission
have met in special emergency session on several occasions to con-
sider this problem of financing , and have surveyed the municipal revenue
financing market, checked with local bank officials and other author-
ized sources to determine the fair market price for current borrowings
of , this type; and
WHEREAS, Mr. Joseph E. Casey, Vice President of the Carleton D.
Beh Co., Investment Securities, Des Moines Building, Des Moines,
Iowa was invited to attend a special meeting; called by the President
of the Commission at 1:30 P. M. on the 3rd day of December, 1970,
at the regular meeting place of the Commission, to consult wit)a
the Commission on the best ways and means available to the Commission
to finance the estimated $2,000,000.00 needed to pay suppliers of
equipment, supplies and services; and
WHEREAS, the financing requirements were discussed at length .
at said time and place with all members of the Hutchinson Utilities
Commission, and the Commission reached its decision on the method
to proceed.
NOW THEREFORE, BE IT RESOLVED BY THE MUNICIPAL UTILITIES
COMMISSION OF THE CITY OF HUTCHINSON, MINNESOTA, that the firm of
Carleton D. Beh Co., Des Moines, Iowa, be and the same are hereby
employed as fiscal agents for and on behalf of the Hutchinson
Utilities Commission to make and conduct all necessary studies
and efforts, and to do all things necessary to prepare for the
necessary issue and sale of electric revenue bonds at the time
decided upon by the Commission, that the details of fiscal agency
service and terms of financing be and hereby are more specifically
set out in written agreement.
BE IT FURTHER RESOLVED that H. P. Quade, President, and R. E.
Young, Secretary, be and are hereby authorized and directed to enter
into formal contract with the Carleton D. Beh Company and sign
written agreement .
Q GREF IAE NT BE TWEE N THE HU TC HI NS ON
UTILITIES COMMISSION, HUTCuINSON,
MINNF SOTA AND THE CARLETON D. BEH
CO., DES MOINES, IOWA, TO FURNISH
FISCAL AGENCY SERVICES TO THE
COMMISSION.
December 3, 1970
December 3, 1970
Honorable President and
Members of the Hutchinson Utilities Commission
Hutchinson, Minnesota
Gentlemen:
In connection with the proposed issue of ap-aroximately $2,0009,000.00
Hutcr ins on Electric Light Plant .Revenue Bonds , we make you the
following proposal:
For and in consideration of the sum equal to one -half of one percent
(? of 1 %) for the first $500,000 in bonds and one- fourth of one per-
cent (14 of 1fl for all bonds issued above $500,000:
1. We will prepare adetailed financial study of your municipal
electric utility, including amoung other things, a review of your
past revenue, estimated future revenues, based upon your engineer's
study, a review of the restrictive provisions of outstanding
ordinances relative to the issuance of additional bonds, several
suggested maturity schedules that would be permissive under those
restrictions, and our analysis of current market conditions and
recommendations as to when to market your bonds.
2, We will assemble and submit
the rating services require to
issuance. The rating services
Utilities Commission.
all of the financial information
rate your bonds prior to their
fee will be paid by the Hutchinson
3. We will recommend to the Commission an optional date for the
prior payment of the debt, the effect and amount of premium for
the privilege of prior redemption.
4. We will recommend to your local attorney and your bond attorney
provisions to be incorporated in the bond ordinance which will
Improve the marketability of the bonds, and also will incorporate
provisions which will not be too restrictive with covenants
relative to the issuance of additional parity bonds or the use of
the net revenues of the system after provision has been made for
payment of the debt.
5. We will prepare and print at our expense, a brochure for the
sale of the bonds containing all the detailed information relative
to the City, the utility, the bonds past and future earnings of
the utility, a copy of the ordinance authorizing their issuance
and securing their payment, that a bond bidder would require to
formulate a bid.
6. We will attend the sale, tabulate the bids and report to
the Commission.
7. We will arrange and pay for the printing of the bonds, assist
In their execution and delivery. We will recommend investment of
the proceeds from the sale to effect the best possible interest
earnings for the Commission during construction.
8. We will furnish your Secretary and Treasurer a copy of the monthly
deposits necessary to be made in your "sinking fund" during the life
of this issue, so the provisions of the ordinance are followed.
9. We will be available for consultation relative to financial
problems 6f the utility for as long as the City might desire our
assistance.
10. We will coodinate and work with. a recognized bond attorney firm
mutually agreed upon so as to market the bonds with a recognized
opinion as to legality, and the Carleton D. Beh Co. will pay this
firm for their services.
(Seal) Respectfully submitted,
CARLETON D. BEH CO.
By (Joseph E. Casey)
�S EM—F—.7`A SEY , VICE PRES.
The above proposition accepted this 3rd day of December, 1970.
ATTEST: (R. E. Young) (H. P. Quade)
Secretary President
This Resolution was read and a motion was made , seconded and
unanimously carried to adopt it this 3rd day of December, 1970.
There being no further business, motion was made, seconded and
unanimously carried to adjourn the meeting.
• • n U , SLsZ' 1 y .
v
ATTEST --
H. P. Qua de, fireside
1
F�
1