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HomeMy WebLinkAboutBoard of Commissioners - Minutes - 05/03/2011MINUTES OF THE OTTER TAIL COUNTY BOARD OF COMMISSIONERS Government Services Center, Commissioners' Room 515 W. Fir Avenue, Fergus Falls, MN May 3, 2011 9:30 a.m. Call to Order The Otter Tail County Board of Commissioners convened Tuesday, May 3, 2011, at 9:30 a.m. at the Otter Tail County Government Services Center in Fergus Falls, MN, with Commissioners John Lindquist, Chair; Lee Rogness, Vice-Chair; Doug Huebsch, Wayne Johnson, and Roger Froemming present. Approval of Agenda Motion by Rogness, second by Johnson, and unanimously carried to approve the Board of Commissioners agenda of May 3, 2011, with the following additions: Added Item to Land & Resource Director -Watercraft Inspection Grant Added Item to Ditch Inspector-County Ditch #63 Approval of Minutes Motion by Rogness, second by Huebsch, and unanimously carried to approve the Board of Commissioners meeting minutes of April 26, 2011, as presented. Approval to Pay Bills Motion by Huebsch, second by Froemming, and unanimously carried to approve payment of the County Board bills per Attachment A of these minutes. Lakeland Mental Health Center 2010 Annual Report LMHC Executive Director, Clair Prody, and Site Director, Bill Klein; presented the LMHC 2010 Annual Report and briefed the Board on their Annual Meeting. The Annual Meeting consisted of the 2010- 2013 Strategic Plan and Mission, values, organizational goals, services, client testimonials, and LMHC's financial position. They stressed the importance of site based services in schools and homes. LMHC serves a multi-county region with their main office in Fergus Falls and satellite offices throughout the region. Directors thanked the County for their financial support and favorable working relationships with the various County Departments. 800 MHz Communication System Planning Sheriff, Brian Schlueter, and members of the 800 MHz Action Team submitted a document estimating the 800 MHz infrastructure cost at $1,301,000, cost of initial radios at $1,214,371, one time mobile install at $24,062.50 and on-going yearly expenses of $75,428.25. A portion of these expenses will be paid from State grant funding. The Action Team recommended that initial radios be provided to law enforcement agencies and not-for-profit ambulance services. The Fire Departments will likely receive a grant for their radios. The recommendation includes initial programming and training to all agencies receiving radios. Motion by Huebsch, second by Froemming, and unanimously carried to authorize the Sheriff's Department to purchase end-user radios for all law enforcement and not-for- profit ambulance services within Otter Tail County based on guidelines identified by the Action Team. The County will provide training to end-users prior to radios being issued and provide initial programming of the radios. Any on-going maintenance, replacement or software assurance costs after the initial issuance of radios will be the responsibility of the end-user Agency. Any grant that becomes available to any agency needing 800 MHz radios must be pursued for funding to reduce overall cost. OTC Board of Commissioners' Minutes May 3, 2011 Page 2 Recess & Reconvene At 10:24 a.m., Chairman Lindquist declared the meeting of the Otter Tail County Board of Commissioners recessed until 10:30 a.m. MIR3 Intelligent Notification Discussion IT Director, Tim Brand, and MIR3 Administrator, Judy Siggerud, updated the Board regarding the County's current MIR3 notification system. Currently the County's MIR3 notification system is being used by several County departments, several hospitals, and the City of Pelican Rapids. Several agency administrators spoke about the value of the system. The MIR3 system has self-subscription and entity administration capabilities. Tim Brand noted that the issue at this point is that the system is maxed out and additional users cannot be added. The cost is $14,000 per year for the system. He recommended an upgrade from 69 phone lines to 96 phone lines at an approximate cost of $30,000 per year. Users pay a fee for the service. By consensus, Commissioners requested the County Coordinator to work with interested parties to research the best plan for a notification system and return to the Board with a plan or update towards a plan. Final plan/recommendation should be self- funding. Annual Minnesota Counties Insurance Trust Report Deputy Director of MCIT, Steve Nelson, presented the MCIT Report to Members. He briefed the Board on the MCIT organization and data regarding property/casualty and workers compensation insurance. He provided some comparisons between MCIT claims vs. Otter Tail County claims. Commissioners expressed concern with the workers compensation experience modification factor and the large number of auto claims. They requested a comparison between a similar private business cost of insurance vs. Otter Tail County's cost with MCIT and an analysis of MCIT's cost of operation and administration. Jewett Lake Conditional Use Permit (CUP) Request Land & Resource Director, Bill Kalar, noted that the Jewett Lake Association CUP request was tabled at the April 19, 2011, meeting until today's meeting. The applicant had waived the 60 day rule to provide additional time. Since the initial County Board meeting, an informal meeting was held with representatives of Jewett and Long lakes. The issues discussed were the conditions downstream of Long Lake that include four points of concern; 1) County Highway 27, 2) beaver dam west of Reed Lake, 3) the river crossing west of the beaver dam, and 4) 180'h Street culverts (township road). Discussion included work being completed on the downstream side by private individuals with the possible exception of the County Highway 27 culvert. CH27 culvert work could be considered in the 2012 highway/road budget. The Planning Commission recommended denial of the Jewett Lake Association CUP to remove two conditions of previous CUP #5753. Commissioner Johnson indicated that there is positive movement towards a group effort to solve the high water problems for Jewett and Long Lake residents. Representatives plan to attend a Township meeting to talk about the culverts on May 10, 2011. Lengthy discussion continued regarding the CUP request. Motion by Froemming, second by Huebsch, and unanimously carried to deny the Conditional Use Permit request of the Jewett Lake Association subject to cooperation between Jewett and Long Lake entities working together for a common solution to draw down the high water. If cooperation ceases, the Jewett Lake Association may reapply for the same CUP request with the application fee being waived. The intent of this motion is to keep the situation as it is until a permanent downstream outlet is fixed. The project is located in Pt of GL 1, 2, & 3, Section 13 of Elizabeth Township; Conditional Use Permit Application recorded as Document #854806; Jewett Lake (56-877), GD. Watercraft Inspection Grant OTC Board of Commissioners' Minutes May 3, 2011 Page 3 Mr. Kalar reported that the Watercraft Inspection Grant application recently submitted by the Land & Resource Office was denied by the MN Department of Natural Resources due to lack of funding. High Water Discussion Highway Engineer, Rick West, updated the Board on the sandbag operation. He stated that Otter Tail County has a good supply of sandbags on hand and sand is being ordered as it is used. He indicated the Emergency Management Team will discuss use of the sandbags to protect homes vs. protection of shoreline property at their next meeting. County Ditch #70 Ditch Inspector, Randy Wasvick, provided a quotation from Houston Engineering Inc. for Otter Tail County Ditch #70 outlet repair review. Motion by Huebsch, second by Rogness. and unanimously carried to accept the quotation from Houston Engineering for preliminary hydraulic analysis for the outlet of Ditch #70 at a cost of $7,461.00. County Ditch #63 Discussion took place regarding issues with Ditch #63. The value of Ditch #63 is much lower than the estimate to repair the complete ditch system. Because of the high cost to repair, it was previously decided to stop the Maintenance Fund assessments and allow property owners to repair the pipe on their property if it blows out. Motion by Rogness, second by Johnson, and unanimously carried to request that the Ditch Inspector contact an Engineer to inspect County Ditch #63. There is currently about $15,000 in the Ditch Fund. Local Water Management Plans GIS Coordinator, Brian Armstrong, and Auditor, Wayne Stein; provided a map with the proposed Water Improvement District. Motion by Rogness, second by Johnson, and unanimously carried to request that a Notice of Intent to Establish a Special Taxing District for Local Water Management Plans be provided to the daily newspaper and posted on the County website. The Notice should also include the property entirely within the proposed watershed district and portions of property that could be considered at the Public Hearing on May 24, 2011, for inclusion in the special taxing district. Recess & Reconvene At 12:52 p.m., Chairman Lindquist declared the meeting of the Otter Tail County Board of Commissioners recessed for lunch break and a committee meeting. The meeting was reconvened at 1:30 p.m. Sale of Bonds for Perham Resource Recovery Facility Pursuant to due call and notice thereof, a meeting of the Board of Commissioners of Otter Tail County, Minnesota, was duly held at the County Government Services Center in Fergus Falls, Minnesota, on Tuesday, May 3, 2011, at 1 :30 o'clock P.M. The following members were present: Commissioners Lindquist, Rogness, Huebsch, Johnson, and Froemming. OTC Board of Commissioners' Minutes May 3, 2011 Page 4 and the following were absent: None * * * * * * * * * Following a public hearing held on April 26, 2011, the Chair announced that the meeting was open for the purpose of considering proposals for the purchase of $10,475,000 General Obligation Disposal System Revenue Bonds, Series 2011 (Prairie Lakes Municipal Solid Waste Authority). Proposals were submitted for each series as presented in Exhibit A. * * * * * * * * * Commissioner Froemming introduced the following written resolution and moved its adoption: RESOLUTION AWARDING SALE OF $10,475,000 GENERAL OBLIGATION DISPOSAL SYSTEM REVENUE BONDS, SERIES 2011, FIXING THE FORM AND SPECIFICATIONS THEREOF, PROVIDING FOR THEIR EXECUTION AND DELIVERY, AND PROVIDING FOR THEIR PAYMENT Otter Tail County Resolution No. 2011 -29 A. WHEREAS, the Board of Commissioners hereby determines and declares that it is necessary and expedient to issue on behalf of Prairie Lakes Municipal Solid Waste Authority Joint Powers Board (the "Board") $10,475,000 aggregate principal amount General Obligation Disposal System Revenue Bonds, Series 2011 (Prairie Lakes Municipal Solid Waste Authority) (the "Bonds"), pursuant to Minnesota Statutes, Chapter 475 and Sections 400.101 and 471.59, to finance the cost of the acquisition and improvement by the Board of the solid waste disposal facilities known as the Perham Resource Recovery Facility (the "Facilities"); and B. WHEREAS, the County, together with Becker, Todd and Wadena Counties (the "Other Members" and, with the County, the "Member Counties") have organized the Board as a joint powers entity under Minnesota Statutes, Section 471.59 for the purpose of acquiring the Facilities from the City of Perham (the "City"); and C. WHEREAS, the Board has entered into a Purchase Agreement with the City for the acquisition of the Facilities as they presently exist, which includes an obligation by the Board to provide funds sufficient to pay the outstanding bonds previously issued by the City to finance the Facilities; and D. WHEREAS, the Member Counties have entered into a Joint Powers Financing Agreement (the "County Agreement") under which the County has agreed to issue general obligation bonds to finance the acquisition and improvement of the Facilities and, to the extent necessary to pay their respective pro rata shares of the principal and interest on the Bonds when due, the Member Counties have pledged their full faith and credit and taxing powers; and E. WHEREAS, the Board and the County intend to enter into a Solid Waste Financing Agreement (the "Board Agreement") under which the Board agrees to own and operate the Facilities and pay to the County the net revenues of the Facilities to the extent necessary to pay principal of and interest on the Bonds when due; and OTC Board of Commissioners' Minutes May 3, 2011 Page 5 F. WHEREAS, the County has retained Ehlers & Associates, Inc., in Roseville, Minnesota, as its independent financial advisor for the sale of the Bonds and is therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statues, Section 4 75.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by Ehlers; and G. WHEREAS, the proposals set forth on Exhibit A attached hereto were received at the offices of Ehlers at 9:30 a.m. this same day pursuant to the Terms of Proposal established for each series of the Bonds; and H. WHEREAS, it is in the best interests of the County that the Bonds be issued in book- entry form as hereinafter provided. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Otter Tail County, Minnesota, as follows: 1. Award of Sale. The proposal of Piper Jaffray & Co. (as adjusted to reduce the principal amount to $10,475,000} to purchase the $10,475,000 General Obligation Disposal System Revenue Bonds, Series 2011 (Prairie Lakes Municipal Solid Waste Authority) of the County is hereby found and determined to be a favorable proposal, and shall be and is hereby accepted, said proposal being to purchase Bonds maturing and bearing interest as set forth in paragraph 2 at a price of $10,362,695.75 plus accrued interest. 2. Bond Terms. The Bonds shall be in the aggregate principal amount of $10,475,000, be dated June 1, 2011, bear interest at the rates per annum according to years of maturity set forth below, computed on the basis of a 360-day year of twelve 30-day months, payable November 1, 2011, and semiannually thereafter on May 1 and November 1 in each year, and mature serially on May 1 in the years and amounts as follows: Interest Interest Year Amount Rate Year Amount Rate 2012 $405,000 3.000% 2020 $465,000 3.500% 2013 380,000 3.000 2021 480,000 3.750 2014 390,000 3.000 2022 500,000 4.000 2015 405,000 3.000 2023 525,000 4.125 2016 415,000 3,000 2024 545,000 4.375 2017 425,000 3.000 2025 570,000 4.500 2018 440,000 3,000 2026 595,000 4.625 2019 455,000 3.250 2027 620,000 4.750 and $2,860,000 principal amount maturing on November 1, 2030, bearing interest at the rate of 5.00% per annum. The November 1, 2030, maturity is subject to mandatory sinking fund redemption on May 1 in the years and amounts as follows: $650,000 in 2028, $735,000 in 2029, $720,000 in 2030, and $755,000 at maturity on November 1, 2030. All Bonds maturing on or after May 1, 2022, are subject to redemption and prior payment in whole or in part in such order as the County may determine and by lot within a maturity at the option of the County on May 1, 2021, and any date thereafter at par and accrued interest. In the event of redemption by lot of Bonds of like maturity, the Bond Registrar shall assign to each Bond of such maturity then outstanding a distinctive number for each $5,000 of the principal amount of such Bonds and shall select by lot in the manner it determines the order of OTC Board of Commissioners' Minutes May 3, 2011 Page 6 numbers, at $5,000 for each number, for all outstanding Bonds of like maturity. The order of selection of Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected, but only so much of the principal amount of each Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. The Bonds shall be numbered R-1 upwards in order of issuance or in such other order as the Registrar may determine and shall be in the denomination of $5,000 each or any integral multiple thereof not exceeding the amount maturing in any year. 3. Registrar and Paying Agent. The Bonds shall be payable as to principal upon presentation at the main office of Bond Trust Services Corporation, as Registrar and Paying Agent, or at the offices of such other successor agents as the County may hereafter designate upon 60 days' mailed notice to the registered owners at their registered addresses. Interest shall be paid by check or draft of the Registrar mailed to the registered owners at their addresses shown on the registration books of the County on the 15th day of the month preceding each interest payment date. 4. Bond Form. The Bonds, the Registrar's Certificate of Authentication and Registration and the form of assignment shall be in substantially the following form: No. R-__ _ Interest Rate UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF OTTER TAIL GENERAL OBLIGATION DISPOSAL SYSTEM REVENUE BOND, SERIES 2011 (PRAIRIE LAKES MUNICIPAL SOLID WASTE AUTHORITY) Maturity Date Date of Original Issue Registered Owner: Cede & Co. Principal Amount: $ ___ _ CUSIP The County of Otter Tail, Minnesota, for value received, hereby promises to pay to the Registered Owner specified above, or registered assigns, the Principal Amount specified above on the Maturity Date specified above, upon the presentation and surrender hereof, and to pay to the Registered Owner hereof interest on such Principal Amount at the Interest Rate specified above from June 1, 2011, or the most recent interest payment date to which interest has been paid or duly provided for as specified below, on May 1 and November 1 of each year, commencing November 1, 2011, until said principal amount is paid. Principal is payable in lawful money of the United States of America at the office of Bond Trust Services Corporation, in Roseville, Minnesota, as Registrar or of a successor Registrar designated by the County, which designation shall be made upon notice of 60 days to the Registered Owners at their registered addresses. Interest is payable to the person in whose name this Bond is registered at the close of business on the 15th day of the month preceding each interest payment date (whether or not a business day) at the registered owner's address set forth on the registration books maintained by the Registrar. Any such interest not punctually paid or provided for will cease to be payable to the owner of record as of such regular record dates and such defaulted interest may be paid to the person in whose name this Bond shall be registered at the close OTC Board of Commissioners' Minutes May 3, 2011 Page 7 of business on a special record date for the payment of such defaulted interest established by the Registrar. For the prompt and full payment of such principal and interest as the same become due, the full faith, credit and taxing powers of the County have been and are hereby irrevocably pledged. The Bonds of this series maturing on November 1, 2030, are subject to mandatory sinking fund redemption as provided in the Resolution described below. The Bonds of this series maturing on or after May 1, 2022, are subject to redemption at the option of the County, in whole or in part in such order as the County may determine and by lot within a maturity, on May 1, 2021, and any date thereafter at par and accrued interest. Thirty days' notice of prior redemption will be given by mail to the bank where the Bonds are payable and to the registered owners in the manner provided by Chapter 475, Minnesota Statutes. Any defect in mailing notice of redemption shall not affect the validity of the proceedings for redemption. Any Bond called for redemption, and for the payment of which moneys are set aside by the County on the redemption date, shall not bear interest after the redemption date, regardless of any delay in its presentation. This Bond is one of an issue of Bonds in the aggregate principal amount of $10,475,000, all of like date and tenor except as to maturity, interest rate, and redemption privilege, issued pursuant to and in full conformity with the Constitution and Laws of the State of Minnesota, including Sections 400.101 and 471.59, Minnesota Statutes, for the purpose of providing funds for the acquisition and improvement of certain solid waste disposal facilities (the "Facilities") to be owned and operated by Prairie Lakes Municipal Solid Waste Authority Joint Powers Board (the "Board"), a joint powers entity whose members are Becker, Otter Tail, Todd and Wadena Counties (the "Member Counties"). The Bonds of this issue (and any additional obligations payable therefrom) are payable primarily from the net revenues of the Facilities and certain obligations of the Member Counties as described in the Resolution referred to below, but this Bond constitutes a general obligation of the County and to provide moneys for the prompt and full payment of said principal and interest as the same become due the full faith and credit of the County is hereby irrevocably pledged, and the County will levy ad valorem taxes on all taxable property in the County, if required for such purpose, without limitation as to rate or amount. This Bond is transferable, as provided by the Resolution of the Board of County Commissioners authorizing the issuance of the Bonds of this series adopted May 3, 2011 (the "Resolution") only upon books of the County kept at the office of the Registrar by the Registered Owner hereof in person or by the Registered Owner's duly authorized attorney, upon surrender of this Bond for transfer at the office of the Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Registrar duly executed by, the Registered Owner hereof or the Registered Owner's duly authorized attorney, and, upon payment of any tax, fee or other governmental charge required to be paid with respect to such transfer, one or more fully registered Bonds of the series of the same principal amount, maturity and interest rate will be issued to the designated transferee or transferees. The Registered Owner of this Bond may be treated as the absolute owner hereof for all purposes. The Bonds of this series are issuable only as fully registered bonds without coupons in denominations of $5,000 or any integral multiple thereof not exceeding the principal amount maturing in any one year. As provided in the Resolution and subject to certain limitations therein set forth, the Bonds of this series are exchangeable for a like aggregate principal amount of Bonds of this series of a different authorized denomination, as requested by the Registered Owner or the Registered Owner's duly authorized attorney upon surrender thereof to the Registrar. OTC Board of Commissioners' Minutes May 3, 2011 Page 8 IT IS HEREBY CERTIFIED AND RECITED that this Bond is issued by authority of and in strict accordance with Minnesota Statutes, Chapter 475 and Sections 400.101 and 471.59, that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed precedent to and in the issuance of this Bond have been done, have happened and have been performed in regular and due form, time and manner as required by law and that this Bond, together with all other indebtedness of the County outstanding on the date of its issuance, does not exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication and Registration hereon shall have been signed by the Registrar. IN WITNESS WHEREOF, Otter Tail County, Minnesota, by its Board of Commissioners, has caused this Bond to be executed in its behalf by the facsimile signature of the Chair and by the facsimile signature of the County Coordinator, all as of the Date of Original Issue specified above. OTTER TAIL COUNTY, MINNESOTA (Facsimile signature) Chair (Facsimile signature) County Coordinator BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION AND REGISTRATION This is one of the Bonds described in the within mentioned Resolution and this Bond has been registered as to principal and interest in the name of the Registered Owner identified above on the registration books of Otter Tail County, Minnesota. BOND TRUST SERVICES CORPORATION, as Bond Registrar By----,---------- Authorized Signature ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto (Please Print or Typewrite Name and Address of Transferee) OTC Board of Commissioners' Minutes May 3, 2011 Page 9 the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints ________ attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: _____________ _ Please Insert Social Security Number or Other Identifying Number of Assignee Signature Guaranteed: Signatures must be guaranteed by a national bank or trust company or by a brokerage firm having membership in one of the major stock exchanges Notice: The signature to this assignment must correspond with the name as it appears on the face of this Bond in every particular, without alteration or any change whatever. 5. Execution and Delivery. The Bonds shall be prepared in printed form under the direction of the County Coordinator and when so prepared shall be executed on behalf of the County by the manual or facsimile signature of the Chair and by the manual or facsimile signature of the County Coordinator The Bonds shall not be valid for any purpose until authenticated by the Registrar. The Bonds initially issued hereunder shall be registered as of June 1, 2011, and all Bonds issued in exchange therefor shall be registered as of such date, or, if issued after the first payment date, as of the most recent interest payment date on which interest was paid or duly provided for. When the Bonds shall have been so prepared and executed, they shall be delivered to the purchaser by the County Coordinator or the Coordinator's designee(s) upon receipt of the purchase price and accrued interest and the signed legal opinion of Faegre & Benson LLP, as Bond Counsel, and the purchaser shall not be required to see to the proper application of the proceeds. 6. Registration and Transfer. As long as any of the Bonds issued hereunder shall remain outstanding, the County shall maintain and keep at the office of the Registrar an office or agency for the payment of the principal of and interest on the Bonds, as in this Resolution provided, and for the registration and transfer of the Bonds, and shall also keep at the office of the Registrar books for such registration and transfer. Upon surrender for transfer of any Bond at the office of the Registrar with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's duly authorized attorney, and upon payment of any tax, fee or other governmental charge required to be paid with respect to such transfer, the County shall execute and the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more fully registered Bonds of the same series and maturity date, of any authorized denominations of a like aggregate principal amount, maturity and interest rate. The Bonds, upon surrender thereof at the office of the Registrar, may at the option of the registered owner thereof be exchanged for an equal aggregate principal amount of Bonds of the same maturity date and interest rate of any authorized denominations. In all cases in which the privilege of exchanging Bonds or transferring fully registered Bonds is exercised, the County shall execute and the Registrar shall deliver Bonds in accordance with the provisions of this Resolution. For every such exchange or transfer of Bonds, whether temporary OTC Board of Commissioners' Minutes May 3, 2011 Page 10 or definitive, the County or the Registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. Notwithstanding any other provision of this Resolution, the cost of preparing each new Bond upon each exchange or transfer, and any other expenses of the County or the Registrar incurred in connection therewith (except any applicable tax, fee or other governmental charge) shall be paid by the County. The County and the Registrar shall not be required to make any transfer or exchange of any Bonds during the fifteen ( 15) days next preceding any May 1 or November 1 interest payment date. 7. Payment. Interest on any Bond which is payable, and is punctually paid or duly provided for, on any interest payment date shall be paid to the person in whose name that Bond (or one or more Bonds for which such Bond was exchanged) is registered at the close of business on the 15th day of the month preceding such interest payment date. Any interest on any Bond which is payable, but is not punctually paid or duly provided for, on any interest payment date shall forthwith cease to be payable to the registered holder on the relevant regular record date solely by virtue of such holder having been such holder; and such defaulted interest may be paid by the County in any lawful manner, if, after notice given by the County to the Registrar of the proposed payment pursuant to this paragraph, such payment shall be deemed practicable by the Registrar. Subject to the foregoing provisions of this paragraph, each Bond delivered under this Resolution upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond and each such Bond shall bear interest from such date that neither gain nor loss in interest shall result from such transfer, exchange or substitution. 8. Ownership of Bonds. As to any Bond, the County and the Registrar and their respective successors, each in its discretion, may deem and treat the person in whose name the same for the time being shall be registered as the absolute owner thereof for all purposes and neither the County nor the Registrar nor their respective successors shall be affected by any notice to the contrary. Payment of or on account of the principal of any such Bond shall be made only to or upon the order of the registered owner thereof, but such registration may be changed as above provided. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. 9. Book-Entry. (a) For purposes of this paragraph 9, the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee of OTC, and any successor nominee of OTC with respect to the Bonds. "OTC" shall mean The Depository Trust Company of New York, New York. OTC Board of Commissioners' Minutes May 3, 2011 Page 11 "Participants" shall mean those broker-dealers, banks and other financial institutions for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Blanket Letter of Representation from the County to DTC, which shall be executed in substantially the form on file. (b) The Bonds shall be initially issued as separate authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register of the County kept by the Registrar in the name of Cede & Co., as nominee of OTC. The Registrar and the County may treat OTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, giving any notice permitted or required to be given to registered owners of Bonds under this Resolution, registering the transfer of Bonds, and for all other purposes whatsoever; and neither the Registrar nor the County shall be affected by any notice to the contrary. Neither the Registrar nor the County shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through OTC or any Participant, or any other person which is not shown on the registration books of the Registrar as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by OTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this Resolution, with respect to the selection by OTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. The Registrar shall pay all principal of and interest on the Bonds only to Cede & Co in accordance with the Representation Letter, and all such payments shall be valid and effective to fully satisfy and discharge the County's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the County to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with subparagraph (e) hereof. (c) In the event the County determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bond certificates, the County may notify OTC and the Registrar, whereupon OTC shall notify the Participants, of the availability through OTC of Bond certificates. In such event, the Bonds will be transferable in accordance with subparagraph (f) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the County and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with subparagraph (e) hereof. (d) Notwithstanding any other provision of this Resolution apparently to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the principal of and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, to DTC as provided in the Representation Letter. OTC Board of Commissioners' Minutes May 3, 2011 Page 12 (e) The application of the terms of the Representation Letter to the Bonds is hereby confirmed. The Representation Letter incorporate by reference certain matters with respect to, among other things, notices, consents and approvals by registered owners of the Bonds and Beneficial Owners and payments on the Bonds. The Registrar shall have the same rights with respect to its actions thereunder as it has with respect to its actions under this Resolution. (f) In the event that any transfer or exchange of Bonds is permitted under subparagraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar from the registered owners thereof of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of paragraph 6 hereof. 10. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Disposal System Revenue Bonds, Series 2011 Fund" (the "Fund") to be administered and maintained by the County Treasurer as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the County. The Fund shall be maintained in the manner herein specified until the Bonds have been fully paid and the County has been fully reimbursed from funds pledged under the Board Agreement and the County Agreement (the "Pledged Receipts") for payment of the principal and interest on the Bonds paid by the County from taxes levied on property in the County. There shall be maintained in the Fund the following separate accounts: (a) Project Account. To the Project Account there shall be credited the proceeds of the sale of the Bonds, other than an amount equal to costs of issuance to be applied as provided in paragraph 17 hereof and accrued interest to be deposited in the Debt Service Account. From the Account there shall be paid all costs and expenses of the acquisition and improvement of the Facilities. Amounts in the Project Account shall be disbursed as provided in the Board Agreement. (b) Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocably appropriated and there shall be credited: (i) Net Revenues of the Facilities pursuant to the Board Agreement in an amount sufficient, together with other sums herein pledged, to pay the annual principal and interest payments on the Bonds; (ii) payments from Member Counties under the County Agreement; (iii) any accrued interest received upon delivery of the Bonds; (iv) any collections of all taxes herein or hereafter levied for the payment of the Bonds and interest hereon; and (v) all funds remaining in the Project Account after completion of the Facilities and payment of the costs thereof. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the County hereafter issued by the County and made payable from said account as provided by law. 11. Coverage. The Net Revenues are estimated to be such that if collected in full they will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. Consequently, no taxes are levied at the present time. The pledge of Net Revenues shall not limit the ability of the Board or County to pledge such Net Revenues to additional obligations of the County or Board. OTC Board of Commissioners' Minutes May 3, 2011 Page 13 12. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds as the same respectively become due, the full faith, credit and taxing powers of the County shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other accounts of the County which are available for such purpose, and such other funds may be reimbursed without interest from the Debt Service Account when a sufficient balance is available therein. 13. Continuing Disclosure. The County is an obligated person with respect to the Bonds The County hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, to perform its obligations under the Continuing Disclosure Certificate (the "Certificate") attached to the official statement. The Chair and County Coordinator of the County, or any other officer of the County authorized lo act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the County the Certificate in substantially the form presented to the Board of Commissioners subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the Bonds. and (iii) acceptable to the Officers 14. Authorization of Solid Waste Financing Agreement and Incidental Documents. The form of the proposed Solid Waste Financing Agreement between the County and the Board is hereby approved and the Board Chair and Coordinator of the County are authorized to execute the same and such other documents as Bond Counsel considers appropriate for in connection with the issuance of the Bonds, in the name of and on behalf of the County. The approval hereby given to the various documents referred to herein includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the County Coordinator, the County's legal counsel and the County officials authorized herein to execute said documents prior to their execution; and said County officials are hereby authorized to approve said changes on behalf of the County. The execution of any instrument by the appropriate officer or officers of the County herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. 15. Payment of Issuance Expenses. The County authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Bond Trust Services Incorporated, Roseville, Minnesota, on the closing date for further distribution as directed by Ehlers. 16. Certificates. The County Coordinator and County Auditor is authorized and directed to prepare and furnish to the purchaser and to the attorneys approving the Bonds, certified copies of all proceedings and records relating to the issuance of the Bonds, and to the right, power and authority of the County and its officers to issue the same, and said certified copies and certificates shall be deemed the representations of the County as to all matters stated therein. 17. Filing. The officers of the County are hereby authorized and directed to prepare and furnish to the Secretary of the Treasury a statement meeting the information reporting requirements of Section 149(e) of the Internal Revenue Code of 1986, as amended (the "Code"), by the 15th day of the second calendar month after the close of the calendar quarter in which the Bonds are issued. OTC Board of Commissioners' Minutes May 3, 2011 Page 14 18. Tax Covenants. The County shall not take or permit any action that would cause the Bonds to fail to qualify as solid waste disposal bonds within the meaning of Section 142 of the Code and shall enforce the provisions of the Board Agreement relating thereto. In addition, the County shall make no investment of funds that would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and regulations thereunder. The County Coordinator is authorized to make any elections available to the County under Section 148 of the Code and regulations thereunder. All terms used in this paragraph 20 shall have the meanings provided in the Code and regulations thereunder. 19. Credit Enhancement Program. As provided in the resolution adopted April 5, 2011, the County covenants and obligates itself to notify the Minnesota Public Facilities Authority of any potential default in the payment of the principal of or interest on the Bonds and to perform all of its obligations under the Agreement and Minnesota Statutes, Section 446A.086. The County shall deposit with the Paying Agent three business days prior to each payment date an amount sufficient to make the payment due on each such date or to notify the Public Facilities Authority that it will be unable to make all or a portion of that payment. The County's agreement with the Paying Agent shall include the provisions required by said Section 446A.086. The County shall do all other things which may be necessary to perform the obligations hereby undertaken under said Section 446A.086, including any requirements adopted by the Public Facilities Authority. 20. Registration. The County Auditor shall register the Bonds in his office as required by law. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Rogness and upon vote being taken thereon the following voted in favor thereof: Commissioners Froemming, Johnson, Huebsch, Rogness, and Lindquist. and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. Adopted on May 3, 2011 Dated: _.a,-'-'-'°71_-'-',0J..,,.........,1o.,,,,1Cl.1 __ OTTER TAIL GOU OARD OF COMMISSIONERS Attest ~" LarryKron, Clerk By ~~~~..E.:::::'.:'.!~~~:....::.._ ___ _ indquist, Boar Seasonal Staff for Treasurer's Office Motion by Huebsch, second by Rogness, and unanimously carried to authorize the Treasurer to hire a seasonal employee to assist with tax collection in May and October of 2011 as recommended by the Personnel Committee. License Application Motion by Froemming, second by Lindquist, and unanimously carried to approve the following application for license: Ten Mile Lake Resort On/Off-Sale 3.2 Malt Liquor 12303 County Highway 35 On-Sale Wine Dalton, MN 56324 OTC Board of Commissioners' Minutes May 3, 2011 Page 15 Boat and Water Grant Agreements Motion by Johnson, second by Lindquist, and unanimously carried to authorize the Chairman's signature to execute the Federal Boating Safety Supplement Grant Agreement between the County of Otter Tail and the State of Minnesota DNR. As the grantee, the County will receive $8,000 for Fiscal Year 2011 for water patrol overtime enforcement. Motion by Rogness, second by Huebsch, and unanimously carried to authorize the Chief Deputy to apply for a federal equipment supplement grant from the Minnesota DNR to purchase a side scan sonar. If the grant is obtained, the equipment must be purchased before September and the County is reimbursed. RESOLUTION DESIGNATING COUNTY STATE AID HIGHWAY LOCATION County State Aid Highway No. 9 Otter Tail County Resolution No. 2011 -30 Upon a motion by Rogness, second by Johnson, and unanimously carried, the following resolution was adopted: WHEREAS, it appears to the County Board of Commissioners of the County of Otter Tail that the highway right of way required for County State Aid Highway No. 9 under S.A.P. 056-609-003 should be accurately described and located by a highway right of way plat. NOW, THEREFORE, BE IT RESOLVED, by the County Board of Commissioners of the County of Otter Tail that the Board of County Commissioners for the County of Otter Tail is hereby designating the definite location of County State Aid Highway No. 9, from State Trunk Highway No. 34 Northerly, in Sections 26, 27, 22, 23, 14, 15, and the South Half of Section 11, all in Township 137 North, Range 43 West of the 5th Principal Meridian as shown on the 4 pages of OTTER TAIL COUNTY HIGHWAY RIGHT OF WAY PLAT NO. 22 Adopted at Fergus Falls, Minnesota, this 3•d day of May, 2011. Dated: __,_()1!J.'"''111.---'/1..1.,0'l-1 _.c;¼...,_,/lL/ __ OTTER TAI OUN Attest: L~~n~ By: ~~~~~r.:::=::'.lu'-,,('#y&~L--=---.,---- indquist, Board of C City/County Cost Sharing Agreement Motion by Rogness, second by Johnson, and unanimously carried to authorize the appropriate County Officials' signatures to execute the lnterlocal Cost Sharing Agreement for Construction Services for the Tower Road and Bridge Project. WesMin Resource, Conservation & Development Otter Tail County representatives on the WesMin RC & D Board appeared before the County Board and reported that, due to lack of Federal funding, the organization is disbanding. They presented a check, in the amount of $15,072.00, to Otter Tail County to be used for construction of restrooms or other structural improvements to Phelps Mill Park. Motion by Froemming, second by Rogness, and unanimously carried to accept funding, in the amount of $15,072.00, from WesMin R, C & D. Commissioners expressed their appreciation for their contribution to the Park. OTC Board of Commissioners' Minutes May 3, 2011 Page 16 County Ditch #43 Chairman Lindquist explained that water flowing out of Rosvold Lake south into Ditch #43 is backing up and running over the top of sandbags and threatening to flood a building site and road. He suggested temporarily blocking the flow of water into Ditch #43 until the water downstream is able to flow through. Motion by Rogness, second by Huebsch, and carried with Johnson opposed, to allow action to temporarily block off water flow in County Ditch #43 for clearing purposes and to prevent flooding of a road and building site. If there are adverse effects, the blockage will be removed. National Association of Counties (NACO) Motion by Rogness, second by Johnson, to bring back the motion previously tabled in favor of joining the National Association of Counties for 2011 with a membership fee of approximately $1,100. Chairman Lindquist called for a roll call vote as follows: Board of County Commissioners Roger Froemming Wayne D. Johnson Doug Huebsch Leland R. Rogness John Lindquist Motion carried. YEA X X X X NAY ABSENT ABSTAIN X Minnesota Accountable Government, Innovation and Collaboration (MAGIC) Act Otter Tail County Resolution No. 2011 -31 WHEREAS, Minnesota is consistently placed at or near the bottom of national measures that assess the capacity for local government innovation in all 50 states; and WHEREAS, Minnesota and its counties face significant demographic trends that will require innovative approaches to program delivery in order to adequately meet the growing and changing needs of citizens; and WHEREAS, counties with innovative ideas should be provided the requisite opportunity and flexibility to successfully implement those ideas so as to best serve their communities; and WHEREAS, counties across Minnesota boast significant geographic, demographic and economic diversity that thus requires maximum flexibility in programmatic implementation; and WHEREAS, counties are willing and able to identify, implement and methodically verify increased programmatic efficiencies through a process that will cultivate and sustain a strong and trusting state- local partnership; and WHEREAS, transitioning to an outcomes-based system of program evaluation is in the best interest of every Minnesota citizen and government that desires to maximize public resources and enhance the quality of life in their community to the fullest extent possible. BE IT THEREFORE RESOLVED that the Otter Tail County Board of Commissioners recommends that the Legislature and governor work cooperatively with all 87 counties to swiftly pass the MAGIC Act into law during the 2011 legislative session, thus implementing a system that will enhance and incent local government efficiency and innovation throughout Minnesota by: OTC Board of Commissioners' Minutes May 3, 2011 Page 17 1. Allowing counties to take any action not prohibited by state law to provide for the health, safety and general welfare of the public. 2. Creating a measured, outcomes-based waiver process whereby counties, in partnership with the legislative and executive branch of state government, can implement efficiency-based, time-limited pilot programs that are subject to final review by the Legislature and governor and will create a repository of best practices so as to improve long-term policy decisions across the state. Upon the motion of Commissioner Johnson and seconded by Commissioner Rogness, the foregoing resolution was adopted with all five seated Commissioners voting in favor. Adopted on May 3, 2011 Dated: _()1...._...4ifq.....J/'-"0+1 _.J.t>=/_,_/ __ Attest: ~~ J/ i/ _, Larry Kfohn~ Child Care Subsidy Program Agreement Motion by Huebsch, second by Froemming, and unanimously carried to authorize the Chairman's signature to execute an agreement between the County of Otter Tail and Lakes and Prairie Community Action Partnership for management of the Child Care Subsidy Program. Human Services Staffing Motion by Rogness, second by Johnson, and unanimously carried to authorize the Human Services Director to replace a Human Services Supervisor in the child protection and assessment services area. The vacancy is due to a termination of employment. Motion by Huebsch, second by Froemming, and unanimously carried to authorize the Human Services Director to replace, by emergency appointment, a Social Worker position to cover a leave of absence. Employee of the Month Program Motion by Froemming, second by Lindquist, and unanimously carried to authorize payment of $795.58 for the Employee Recognition program for calendar year 2010 to be paid out of the Commissioner's budget. Adjournment At 3:43 p.m., Chairman Lindquist adjourned the meeting of the Otter Tail County Board of Commissioners until 9:30 a.m. on Tuesday, May 10, 2011. Dated Motl Joi Joi/ OTTER TAI OUNT~ARD o: COMMISSIONERS By: _::::~:::._:e....:c=-~.:..__...=:..:,::.,::::..=""'------- Attest: _c/""" -= "=--__,_✓-4'-"'~=--- L~n. ~ Lindquist, Board of mmissioners Chair CB/kd OTC Board of Commissioners' Minutes May 3, 2011 Attachment A, Page 1 WARRANTS APPROVED ON 5103/2011 FOR PAYMENT 5103/2011 VENDOR NAME A'VIANDS LLC BARRY CONSTRUCTION OF FERGUS F JOHN BARTHEL PAT BIRCH BNSF RAILWAY COMPANY BOUND TREE MEDICAL LLC BROADBLAST INC CDW GOVERNMENT INC CENTRAL LAKES COLLEGE COMMISSIONER OF TRANSPORTATION CONCEPT CATERING COOKS DIRECT COOPERS TECHNOLOGY GROUP CULLIGAN WATER CONDITIONING D & V'S PERHAM BAKERY DAL TON CORNER STORE FERGUS FALLS DAILY JOURNAL CITY FERGUS FALLS FERGUS TIRE CENTER KRISTIN FOX GALLS AN ARAMARK COMPANY MYRON GRAFF CHARLES GROTTE MARK HABERER DAVID HAUSER INNOVATIVE OFFICE SOLUTIONS DAVID JENNEN JK SPORTS JONES AND MAGNUS KEEPRS INC CY'S UNIFORMS KELLY SERVICES INC LAKE REGION HEALTHCARE CORP LAKES COUNTRY SERVICE CO OP LARRY OTT INC TRUCK SERVICE LEITCH EXCAVATING LOCATORS & SUPPLIES INC JERRY LOKEN MARCO INC ST LOUIS MCHRMA MN DEPT OF NATURAL RESOURCES 0 MN STATE AUDITOR NAPA FERGUS FALLS NELSON AUTO CENTER JOYCE NERDAHL NORTHERN STATES SUPPLY INC NORTHLAND COMM & TECH COLLEGE NORTHWEST SCALE INC OFFICEMAX INCORPORATED OLSON OIL CO INC OTIS ELEVATOR CO OTTER ELECTRIC LLC OTTER TAIL CO EMPLOYEES COMMIT OTTER TAIL CO PUBLIC HEALTH OTTERTAIL TRUCKING INC OVERLAND MECHANICAL SERVICES PERHAM TRUCK SERVICE INC PHILLIPE LAW OFFICE AMOUNT 2,921.91 11,006.66 179.99 94.99 121,441.17 315.09 33.27 4,393.33 1,200.00 48.52 375.00 198.34 853.37 10.69 66.00 191.62 477.95 24.732 69 27.57 72.53 163.76 19.25 181.05 26.21 183.15 4,863.04 211.99 150.00 610.00 215.39 1,190.94 341.00 236.00 700.00 2,204.51 304.96 8.62 1,437.53 35.00 90.00 4,878.00 51.17 24,377.36 640.00 355.72 600.00 69.00 126.80 5,207.61 118.64 3,206.61 40.00 300.00 6,985.00 569.36 16.86 362.46 OTC Board of Commissioners' Minutes May 3, 2011 Attachment A, Page 2 VENDOR NAME PRIORITY DISPATCH QUARTERMASTER QUILL CORPORATION REED REINBOLD SB LC-FF SERVICE FOOD SUPER VALU RICK SHEILS SIMPLEXGRINNELL LP SHARON SPENCER JESSICA STEINBRENNER STEINS INC STREICHERS SWANSTON EQUIPMENT CORP TITAN ACCESS ACCOUNT UL TEIG ENGINEERS UNIFORMS UNLIMITED TERRY VAN DYKE DVM VICTOR LUNDEEN COMPANY VOSS LIGHTING WASTE MANAGEMENT WEST PAYMENT CENTER WESTERN AREA CITY CO COOPERATI WHITE BANNER UNIFORM SHOP WW 11 CONSULTING COMPANY , ... FINAL TOTAL ... AMOUNT 39.00 60.34 99.74 7.35 17.47 11.43 34.20 7,080.00 12.55 104.40 928.17 209.92 6,840.00 222.84 1,403.72 43.09 300.00 62.50 797.57 6,533.00 40.61 5,000.00 159.10 2,836.80 $262,561 .48""