09-08-1976 HUCM(1)
(2)
(3)
(4)
1
SPECIAL MEETING,
September 8, 1976
All Commissioners were present; also Mgr. Alexander, Ruth
Hakel, Counsel Peterson, Don Swanson, Joe Casey, and
E. Dan Hazen of the John Naveen and Company Inc.
The meeting was called to order at 2 P.M. by President Quade,
for the purpose of opening and considering bids for and
awarding the sale of $4,500,000 Light and Power Plant Revenue
Bonds of 1976 of said City of Hutchinson.
The Secretary of the Commission presented affidavits showing
publication of notice of call for bids on $4,500,000 Light
and Power Revenue Bonds of. 1976 of the City, for which bids
were to be received at this meeting, in accordance with the
resolution adopted by the Commission on August 9, 1976. Said
affidavits were examined, found to comply tieh the provisions
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 said bonds. The following bids were received:
Bidder Interest Rate Net Interest Cost
The First Boston Corporation 5.113098% $1,781,147.65
J -)hn Nuveen & Co., Inc. et al 4.9948% 1,739,956,25
Dain, Kalman & Quail, Inc. 4.996791% 1,740,632.06
Bache Halsey Stuart
4.955102% 1,726,109.76
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The Commission then proceeded to consider such bids.
After the bids had been considered and discussed, member
H. W. Filk introduced the following resolution
and moved its adoption:
RESOLUTION ACCEPTING BID ON SALE OF
$4,500,000 LIGHT AND POWER PLANT
REVENUE BONDS OF 1976
AND FIXING THE INTEREST RATE THEREON
WHEREAS:
A. The Hutchinson Utilities Commission on August 9,
1976 adopted a resolution providing for the issuance and sale
of $4,500,000 Light and Power Plant Revenue Bonds of 1976.
B. In accordance with the said resolution providing
for the issuance and sale the Hutchinson Utilities Commission
advertised the Notice of Sale for $4,500,000 Light and Power
Plant Revenue Bonds of 1976 in various publications.
C. The Notice of Sale contained an error in the
maturity schedule of said bonds.
D. It was necessary that the notice of sale
be readvertised to comply with the requirements of Minne-
sota Statutes, Section 475.60.
E. The readvertisement of the Notice of Sale was
in accordance with the Notice of Bond Sale attached hereto
and incorporated herein by reference.
F. Bids on said Bonds have been opened and
considered by the Commission.
BE IT RESOLVED by the Hutchinson Utilities
Commission of the City of Hutchinson, Minnesota, as follows:
1. The cancellation of the original sale date
and the readvertisement of the Notice of Sale in Commercial
West and the local official newspaper and any other
publication deemed appropriate by the Commission's fiscal
consultant for sale of the bonds herein indicated in
accordance with the Notice of Bond Sale attached hereto
and incorporated herein by reference is hereby ratified,
affirmed and approved.
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2. That the bid of Bache Halsey Stuart Inc.
to purchase $4,500,000 Light and Power Plant Revenue Bonds
Of 1976 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 $4,459,696.50 "pFxgxr�ixi�
xxxxxx4 is hereby found, determined and declared to be the
most favorable bid received, and is hereby accepted and said
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. Said bonds shall be payable as to
principal and interest at designation of Bache Halsey
Stuart Inc. ,
or any successor Paying Agent duly appointed by the Commission.
3. The $4,500,000 negotiable coupon revenue bonds
of the City shall be, dated September 1, 1976 and shall be
issued forthwith. * ��scxx����x��x��x�xixxdaxd
xobdxxxxxfkx$6cAc9ax3ocodx. Said bonds shall mature serially,
lowest numbers first, on December I in the years and amounts as
follows:
$ 60,000 in�the year 1977;
$ 70,000 in the years 1978 and 1979, both inclusive;
,$450,000 in the year 1980;
$475,000 in the year 1981;
$500, 000, in the year 1982.;
$525,000 in the year 1983;
$550,000 in the year 1984;
$575,000 in the year 1985;
$600,000 in the year 1986; and
$625,000 in the year 1987.
4. Said bonds shall provide funds for the improvement
and expansion of the municipal electric light plant and system.
The total cost of said project, including the cost of construc-
tion under the terms of the lowest bid received, engineering,
legal and other professional charges, publication and printing
costs, interest accruing on money borrowed for the project
before the collection of any net revenues pledged to the pay-
ment of the bonds, and all other costs necessarily incurred
and to be incurred from the inception to the completion of
the project, is estimated to be at least equal to the amount
of the bonds herein authorized. Work on the project shall
proceed with due diligence to completion.
*Said bonds shall be numbered and in denominations designated
by Bache Halsey Stuart, Inc.
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5. The bonds of said issue maturing in the years
and bearing the serial numbers set forth below shall bear
interest, payable December 1, 1976 and semiannually there-
after on June 1 and December 1 of each year, at the respec-
tive rates per annum set opposite said maturity years and
serial numbers:
Maturity Years
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
Serial Numbers Interest Rate
[To be designated by 3.50
Bache Halsey Stuart 3.75
Inc.] 4.00
4.10
4.30
4.50
4 . +70
4.80
5.00
5.10
5.20
6. IFor the sole purpose of complying with
Minnesota Statutes Section 475.74 Subd. (1) and (2),
the maturities of said bond issue shall be and are hereby
combined with the maturities of the Light and Power Plant
Revenue Bonds of 1967 and the Light and Power Plant Revenue
Bonds of 1971.
The motion for the adoption of the foregoing
resolution was duly seconded by member Clint Tracy
and upon vote being taken thereon, the following voted in
favor thereof:
H. P. Quade, Clint Tracy, & H. W. Filk
and the following voted against the same:
None
Whereupon said resolution was declared duly
passed.and adopted.
The meeting adjourned at �:45P.M.
ATTE —,j� " H. Quade, President
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