03-15-1993 HUCM6 7 ---"-
Special Meeting
March 15, 1993
Commissioners Lyke, Cornell, Beatty and Ward were present;
Commissioner Gilmer was absent; also present were Mgr. Kadrmas
and Counsel Prochnow.
President Lyke called the meeting to order at 7:05 a.m.
Mgr. Kadrmas presented a request for bids for the construction
of a control building (unit W. After discussion, a motion was
made by Commissioner Cornell, seconded by Commissioner Beatty
to advertise for bids and to open the bids on April 13, 1993.
Motion was unanimously carried.
Counsel Prochnow presented a resolution relating to financing
of certain proposed projects to be undertaken by the Hutchinson
Utilities Commission of the City of Hutchinson; establishing
compliance with reimbursement bond regulations under the Internal
Revenue code (resolution attached). After discussion, a motion
was made by Commissioner Ward, seconded by Commissioner Cornell
to accept the resolution. Motion was unanimously carried.
Counsel Prochnow is working with City of Hutchinson's attorney
on McLeod Co- operative service territory issue.
Mgr. Kadrmas presented a five year contract (November 1, 1993 to
November 1, 1999) with Northern Natural Gas Company. After
discussion, a motion was made by Commissioner Beatty, seconded
by Commissioner Cornell to approve the contract with Northern
Natural Gas Company. Motion was unanimously carried.
There being no further business, the meeting was adjourned at
7:38 a.m.
Doug s D. Ward, Secretary
ATTEST
Thomas B. Lyke, President
ADVERTISEMENT FOR BIDS
FOR THE
CONSTRUCTION
OF A
CONTROL BUILDING
FOR THE
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities
Commission of the City of Hutchinson, Minnesota, hereinafter
referred to as the Owner, will receive sealed Bids at the
Hutchinson Utilities office in Hutchinson, Minnesota, until 2:00
p.m. on the 13th day of April, 1993, and will publicly open and
read aloud such Bids on the following improvement(s):
FURNISH, DELIVER AND ERECT A 70' X 60' STEEL BUILDING AND '
FOUNDATIONS FOR THE STEEL BUILDING, THE STEAM TURBINE AND
CONDENSER, AND THE HEAT RECOVERY STEAM GENERATOR,
INCLUDING ALL ASSOCIATED PILING, EXCAVATION AND SITEWORK.
Proposals shall be properly endorsed and delivered in an
envelope marked, "BIDS FOR THE CONSTRUCTION OF A CONTROL BUILDING
FOR THE HUTCHINSON UTILITIES COMMISSION, HUTCHINSON, MINNESOTA,
PROJECT NO. 915221 1993 ", and shall be addressed to: Hutchinson
Utilities Commission of the City of Hutchinson, Minnesota 55350.
All proposals shall be submitted in triplicate on the Bidder's
own letterhead in facsimile of the Proposal Form enclosed in the
Specifications, or by utilizing the Proposal Form enclosed with the
Specifications by typing the official name of the Bidder at the top
of the form.
Each Proposal shall be accompanied by a bid bond, cashier's
check, or certified check made payable to the Owner in the amount
of five percent (5 %) of the Bid, as a guarantee that the Bidder
will enter into the proposed Contract and provide a performance and
maintenance bond after their Bid shall have been accepted.
No Bidder may withdraw their Bid or Proposal for a period of
thirty (30) days after date of opening of Bids.
At the aforementioned time and place, or at such later time
and place as the Owner then may fix, the Owner will act upon
Proposals received and within its sole discretion may award
Contracts) for the furnishing /construction of said improvement(s).
Payment for said improvements will be made in cash derived
from available cash on hand from revenue and such other sources as
may be available to the municipal electric utility. The city shall
not incur any general obligation for said improvements. The
Contract for the furnishing of said improvements shall not
constitute a general obligation of said city nor be payable in any
manner by taxation.
The successful Bidder will be required to furnish a Bond in an
amount equal to 100% of the Contract price, said bond to be issued
by a responsible surety approved by the Owner, and shall guarantee
the faithful performance of the Contract and the terms and
conditions therein contained, and save harmless the Owner from
claims and damages of any kind caused by the operation of the
Contractor and shall also guarantee the maintenance of the
improvement for a period of one year from and after final
acceptance by the Owner.
Work shall be started and completed within the time stated in
the Specifications /Contractor's Proposal.
Specifications and Plans are on file at the office of the
Owner and Associated Consultants Engineers, Inc., 3131 Fernbrook
Lane North, Minneapolis, Minnesota 55447, upon payment of twenty
dollars ($20.00) per set (non - refundable) to defray handling costs.
The Owner reserves the right to reject any or all Proposals
and to waive informalities. Published upon order of the Owner.
HUTCHINtrpN UTILITIES CO MISSION
HUTCHI y`OMINNr T
By
resident
Date
ATTE ED
By
Sec etary
Date
(a) The Internal Revenue Service has issued Section
1.103 -18 of the Income Tax Regulations (the "Regulations ")
dealing with the issuance of bonds, all or a portion of the
proceeds of which are to be used to reimburse the Commission
for project expenditures made by the Commission prior to the
date of issuance.
(b) The Regulations generally require that the
Commission make a prior declaration of its official intent
to reimburse itself for such prior expenditures out of the
proceeds of a subsequently issued borrowing, that the
borrowing occur and the reimbursement allocation be made
from the proceeds of such borrowing within one year of the
payment of the expenditure or, if longer, within one year of
the date the project is placed in service, and that the
expenditure be a capital expenditure.
(c) The Commission desires to comply with requirements
of the Regulations with respect to certain projects
hereinafter identified.
2. Official Intent Declaration.
(a) The Commission proposes to undertake the following
projects described on Exhibit A attached hereto.
(b) Other than (i) expenditures to be paid or
reimbursed from sources other than a borrowing or (ii)
expenditures permitted to be reimbursed pursuant to the
transition provision of Section 1.103 - 18(1)(2) of the
Regulations of (iii) expenditures constituting preliminary
expenditures as defined in Section 1.103- 18(i)(2) of the
Regulations, no expenditures for the foregoing projects as
identified on Exhibit A have heretofore been made by the
Commission and no expenditures will be made by the
Commission until after the date of this Resolution.
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RESOLUTION 147
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HUTCHINSON UTILITIES COMMISSION
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RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED
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PROJECTS TO BE UNDERTAKEN BY THE HUTCHINSON UTILITIES
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COMMISSION OF THE CITY OF HUTCHINSON; ESTABLISHING
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COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE
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INTERNAL REVENUE CODE
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BE IT RESOLVED by the Hutchinson Utilities Commission
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(the "Commission "), as follows:
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1. Recitals .
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(a) The Internal Revenue Service has issued Section
1.103 -18 of the Income Tax Regulations (the "Regulations ")
dealing with the issuance of bonds, all or a portion of the
proceeds of which are to be used to reimburse the Commission
for project expenditures made by the Commission prior to the
date of issuance.
(b) The Regulations generally require that the
Commission make a prior declaration of its official intent
to reimburse itself for such prior expenditures out of the
proceeds of a subsequently issued borrowing, that the
borrowing occur and the reimbursement allocation be made
from the proceeds of such borrowing within one year of the
payment of the expenditure or, if longer, within one year of
the date the project is placed in service, and that the
expenditure be a capital expenditure.
(c) The Commission desires to comply with requirements
of the Regulations with respect to certain projects
hereinafter identified.
2. Official Intent Declaration.
(a) The Commission proposes to undertake the following
projects described on Exhibit A attached hereto.
(b) Other than (i) expenditures to be paid or
reimbursed from sources other than a borrowing or (ii)
expenditures permitted to be reimbursed pursuant to the
transition provision of Section 1.103 - 18(1)(2) of the
Regulations of (iii) expenditures constituting preliminary
expenditures as defined in Section 1.103- 18(i)(2) of the
Regulations, no expenditures for the foregoing projects as
identified on Exhibit A have heretofore been made by the
Commission and no expenditures will be made by the
Commission until after the date of this Resolution.
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(c) The Commission reasonably expects to reimburse the
expenditures made for costs of the designated projects out
of the proceeds of debt (the "Bonds ") to be incurred by the
Commission after the date of payment of all or a portion of
the costs. All reimbursed expenditures shall be capital
expenditures as defined in Section 1.150 -1(h) of the
Regulations. The maximum principal amount of the Bonds to
be issued to reimburse the Commission for expenditures made
for costs of the designated projects is $13.5 million.
(d) This declaration is a declaration of official
intent adopted pursuant to Section 1.103 -18 of the
Regulations.
3. Budgetary Matters. As of the date hereof, there
are no Commission funds reserved, allocated on a long term basis
or otherwise set aside (or reasonably expected to be reserved,
allocated on a long term basis or otherwise set aside) to provide
permanent financing for the expenditures related to the projects,
other than pursuant to the issuance of the Bonds. This
resolution, therefore, is determined to be consistent with the
Commission's budgetary and financial circumstances as they exist
or are reasonably foreseeable on the date hereof, all within the
meaning and content of the Regulations.
4. Filing. This resolution shall be filed within 30
days of its adoption in the publicly available official books and
records of the Commission. This resolution shall be available
for inspection at the office of the Commission during normal
business hours on every business day until the date of issuance
of the Bonds.
5. Reimbursement Allocations. The Commission's
financial officer shall be responsible for making the
"reimbursement allocations" described in the Regulations, being
generally the transfer of the appropriate amount of proceeds of
the Bonds to reimburse the source of temporary Zinancing used by
the Commission to make payment of the prior costs of the
projects. Each allocation shall be evidenced by an entry on the
official books and records of the Commission maintained for the
Bonds, shall specifically identify the actual prior expenditure
being reimbursed or, in the case of reimbursF. -ment of a fund or
account in accordance with Section 1.103 -18, the fund or account
from which the expenditure was paid, and shall be effective to
relieve the proceeds of the Bonds from any restriction under the
bond resolution or other relevant legal documents for the Bonds,
and under any applicable state statute, which would apply to the
unspent proceeds of the Bonds.
Adopted this 29th day of March, 1993.
EXHIBIT A
PURCHASE AND CONSTRUCTION OF AN LM6000 COMBINED CYCLE
PLANT WITH PROJECTED COSTS AS HEREINBELOW SET FORTH
Unit #1 Construction
* Items already Bid or on order
ITEM
Paid 1992
Paid 1993
Paid 1994
Total Paid
*G.E. contract LM6000
$3,037,800
$9,113,400
$12,151,200
*Deftak Boiler Contract
256,000
3,357,000
500,000
4,1 13,000
Site Work
*Turbine Pad
32,800
32,800
*Grading & Fence
62,200
62,200
*Road Assements
160,000
160,000
Final Site
100,000
•,
100,000
Electrical
*Power Transformer
331,500
331,500
69KV Breaker & Structure
100,000
100,000
Swgr & MCC Center
85,000
85,000
Scads RTU & Submaster
83,000
83,000
Misc Electrical
125,000
75,000
200,000
r= Steam Turbine
810,000
100,000
910,000
Mechanical
Cooling Towers
375,000
375,000
Aux Boiler
55,000
55,000
Chiller
. 500,000
500,000
Misc Mechanical
400,000
100,000
500,000
Building
350,000
350,000
Misc Eng,Permits,Financing
197,948
210,000
100,000
507,948
$16,154,900
$875,000
$20,616,648
Totals
$3,586,748