HomeMy WebLinkAboutBoard of Commissioners - Minutes - 04/02/2013MINUTES OF THE
OTTER TAIL COUNTY BOARD OF COMMISSIONERS
Government Services Center, Commissioners' Room
515 W. Fir Avenue, Fergus Falls, MN
April 2, 2013
9:30 a.m.
Call to Order
The Otter Tail County Board of Commissioners convened Tuesday, April 2, 2013 at 9:30 a.m , at the Otter
Tail County Government Services Center in Fergus Falls, MN, with Commissioners Doug Huebsch, Chair;
Wayne Johnson, Vice-Chair; Roger Froemming, John Lindquist, and Lee Rogness present.
Approval of Agenda
Chairman Huebsch called for approval of the April 2, 2013 agenda. Motion by Froemming, second by
Johnson, and unanimously carried to approve the Board of Commissioners agenda of April 2, 2013 with
the following addition:
11 :30 a.m. -Internal Services Committee Meeting for
Sheriffs Office Staffing Requests
Approval of Minutes
Motion by Rogness, second by Johnson, and unanimously carried to approve the March 26, 2013 Board of
Commissioners meeting minutes as written.
Approval to Pay Bills
Motion by Lindquist, second by Froemming, and unanimously carried to approve payment of the County
Board bills per Attachment A of these minutes.
BOND FINANCING FOR UPGRADES AT THE PERHAM RESOURCE RECOVERY FACILITY
Otter Tail County Resolution No. 2013 -27
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, April 2, 2013, at 9:35 o'clock A.M.
The following members were present Commissioners Huebsch, Johnson, Froemming,
Lindquist, and Rogness;
and the following were absent None
Following the public hearing, the Chair announced that the meeting was open for the purpose of
considering proposals for the purchase of $19,380,000 General Obligation Waste Disposal Revenue
Bonds, Series 2013A (Prairie Lakes Municipal Solid Waste Authority). Proposals were submitted as
shown in Exhibit A attached hereto.
Commissioner Froemming introduced the following written resolution and moved its adoption:
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April 2, 2013
Page 2
RESOLUTION AWARDING SALE OF $19,380,000 GENERAL
OBLIGATION WASTE DISPOSAL REVENUE BONDS, SERIES 2013A,
FIXING THE FORM AND SPECIFICATIONS THEREOF, PROVIDING
FOR THEIR EXECUTION AND DELIVERY, AND PROVIDING
FOR THEIR PAYMENT
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") $19,380,000 aggregate principal amount General Obligation Waste Disposal Revenue
Bonds, Series 2013A (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 improvements by the Board
to 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; and
C. 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
improvements to 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
D. WHEREAS, the Board and the County intend to enter into a Solid Waste Financing
Agreement (the "Board Agreement") under which the Board agrees to 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.
E. 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 Statutes, Section 475.60, Subdivision 2(9) and proposals
to purchase the Bonds have been solicited by Ehlers; and
F. WHEREAS, the proposals set forth on Exhibit A attached hereto were received at the
offices of Ehlers at 10:00 a.m. on April 1, 2013, pursuant to the Terms of Proposal established for the
Bonds; and
G. 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 Robert W. Baird & Co., Inc. (as adjusted to reduce the
principal amount to $19,380,000) to purchase the $19,380,000 General Obligation Waste Disposal
Revenue Bonds, Series 2013A (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
$19,638,600.31 plus accrued interest.
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April 2, 2013
Page 3
2. Bond Terms. The Bonds shall be in the aggregate principal amount of $19,380,000, be
dated April 25, 2013. 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, 2014, and
semiannually thereafter on May 1 and November 1 in each year, and mature serially on November 1 in the
years and amounts as follows:
Interest Interest
Year Amount Rate Year Amount Rate
2015 $630,000 2.00% 2021 $ 745,000 3.00%
2016 645,000 2.00 2022 770,000 3.00
2017 660,000 3.00 2023 790,000 3.00
2018 680,000 3.00 2033 11,070,000 3.40
2019 695,000 3.00 2034 1,970,000 3.75
2020 725,000 3.00
The November 1, 2033, maturity is subject to mandatory sinking fund redemption on November 1 in the
years and amounts as follows:
Year Amount Year Amount
2024 $815,000 2029 $ 920,000
2025 840,000 2030 245,000
2026 870,000 2031 1,785,000
2027 905,000 2032 1,845,000
2028 935,000
and $1,910,000 at maturity on November 1, 2034. For the purpose of complying with the requirements of
Minnesota Statutes, Section 475.54, the maturities of the Bonds are combined with those of the County's
General Obligation Disposal System Revenue Bonds, Series 2011 (the "Prior Bonds"). All Bonds maturing
on or after November 1, 2023, 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 November 1,
2022, 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 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:
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April 2, 2013
Page 4
No.R-__ _
Interest Rate
Registered Owner:
Principal Amount:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
OTTER TAIL COUNTY
GENERAL OBLIGATION
WASTE DISPOSAL REVENUE BOND, SERIES 2013A
(PRAIRIE LAKES MUNICIPAL SOLID WASTE AUTHORITY)
Maturity Date Date of Original Issue
Cede & Co.
$ ____ _
CUSIP
Otter Tail County, 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 April 25, 2013, 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, 2013, 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 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, 2033, are subject to mandatory sinking fund
redemption as provided in the Resolution described below. The Bonds of this series maturing on or after
November 1, 2023, 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 November 1, 2022, 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 $19,380,000, 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 improvements to certain solid waste
disposal facilities (the "Facilities") owned and operated by Prairie Lakes Municipal Solid Waste Authority
OTC Board of Commissioners' Minutes
April 2, 2013
Page 5
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 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 April 2, 2013 (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.
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 Administrator, all as of the Date of Original Issue specified above.
OT~ TAIL ~SOTA
Cha"•~ 4-l
Coun~nistrator
OTC Board of Commissioners' Minutes
April 2, 2013
Page 6
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.
Dated: April 25, 2013
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)
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.
7. Execution and Delivery. The Bonds shall be prepared in printed form under the direction of
the County Administrator 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 Administrator.
The Bonds shall not be valid for any purpose until authenticated by the Registrar. The Bonds initially
issued hereunder shall be registered as of April 25, 2013, 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 Administrator or the
Administrator's designee(s) upon receipt of the purchase price and accrued interest and the signed legal
opinion of Faegre Baker Daniels LLP, as Bond Counsel, and the purchaser shall not be required to see to
the proper application of the proceeds.
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April 2, 2013
Page 7
8. 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 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.
9. 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.
10. 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.
OTC Board of Commissioners' Minutes
April 2, 2013
Page 8
11. Book-Entry.
(a) For purposes of this paragraph 11, 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.
"Participants" shall mean those broker-dealers, banks and other financial institutions for which OTC
holds Bonds as securities depository.
"Representation Letter" shall mean the Blanket Letter of Representation from the County to OTC,
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
OTC 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 OTC 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 OTC 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 OTC to the Registrar of written notice to the effect that OTC 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.
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April 2, 2013
Page 9
(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. OTC 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 OTC, 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 OTC as provided in the Representation Letter.
(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.
12. Fund and Accounts. There is hereby created a special fund to be designated the "General
Obligation Waste Disposal Revenue Bonds, Series 2013A 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 capitalized 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 an amount equal to $638,166.75 to pay
interest on the Bonds, and: (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.
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April 2, 2013
Page 10
13. 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 and the Prior 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.
14. 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.
15. 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 Administrator of the County, or any other officer of the County authorized to
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.
16. 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 Administrator 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 Administrator. 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.
17. 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.
18. Certificates. The County Administrator and County Auditor are 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.
OTC Board of Commissioners' Minutes
April 2, 2013
Page 11
19. 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.
20. 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 Administrator 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.
21. Credit Enhancement Program. As provided in the resolution adopted March 12, 2013, 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 dale 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.
22. 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 Johnson, Froemming, Lindquist, Rogness, and Huebsch;
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
Dated: _...cO::....:.'l_-_<>...:.'l_--'--1 ?>=------OTTER TAIL COUNTY BOARD OF COMMISSIONERS
Probation Department Grant Contracts
Motion by Lindquist, second by Rogness, and unanimously carried to authorize the Chairman's signature
to execute a Grant Agreement between the State of Minnesota and County of Otter Tail to administer the
Remote Electronic Alcohol Monitoring (REAM) program. The State of Minnesota provides Otter Tail
County a grant, in the amount of $12,000 each year for FY2014 and 2015 without a local match
requirement.
OTC Board of Commissioners' Minutes
April 2, 2013
Page 12
Motion by Lindquist, second by Rogness, and unanimously carried to authorize the appropriate County
Officials' signatures to execute a Grant Agreement between the State of Minnesota and County of Otter
Tail to administer the Caseload/Workload program. The State of Minnesota provides Otter Tail County a
grant, in the amount of $115,166 each year for FY2014 and 2015. The grant is used towards Probation
staff salaries.
Probation Advisory Committee
Motion by Lindquist, second by Johnson, and unanimously carried to appoint Hans Ronnevik of Dalton,
MN, to represent the Third District on the Probation Advisory Committee and to thank Janyne Hoff for her
past service.
Motion by Rogness, second by Lindquist, and unanimously carried to approve payment of per diem and
expenses, in the amount of $72.00, for Hans Ronnevik to attend a recent Probation Advisory Committee
meeting.
Recess & Reconvene
At 10:02 a.m., Chairman Huebsch declared the meeting of the Otter Tail County Board of Commissioners
recessed for a short break. The meeting was reconvened at 10:10 a.m.
Discussion -County Ditches
Kevin Fellbaum, Ditch Inspector, presented a power point titled "County Ditches and Joint Judicial
Ditches". He presented Otter Tail County Ditch System history, facts, plan and recommendations. Mr.
Fellbaum recommends holding public meetings to inform the public about ditch systems and laws and gain
information from the public of how each ditch operates. He indicated that review of each ditch would likely
result in a redetermination of benefits, combining of ditches, or abandonment if no longer used.
Redetermination of benefits will facilitate an established maintenance fund for each ditch. Discussion
followed the presentation. Mr. Fellbaum will return to the Board with a written plan including ditches that
are a priority, a public meeting schedule, and an inspection schedule.
Aerial Spraying
Motion by Johnson, second by Rogness, and unanimously carried to grant West Central Ag-Air, Inc.
permission to operate agricultural aircraft over unincorporated areas of Otter Tail County to spray for tent
worm caterpillars as approved in a letter sent to West Central Ag-Air dated April 2, 2013. West Central Ag-
Air will enter into an agreement with clients requesting the service. ·
Treasurer's Department Staffing
Motion by Rogness, second by Lindquist, and unanimously carried to approve replacement of a Deputy
Treasurer position. Motion by Rogness, second by Johnson, and unanimously carried to allow the
Treasurer to explore all options to fill the position on a temporary basis until the permanent hiring process
is completed. · !
AgStar Supports County Fairs
Motion by Rogness, second by Johnson, and unanimously carried to pass-on grant information to Otter
Tail County Fair organizations from AgStar Financial Services which support county fairs in AgStar's
service area.
Recess & Reconvene
At 11 :15 a.m., Chairman Huebsch declared the meeting of the Otter Tail County Board of Commissioners
recessed for a short break. The meeting was reconvened at 11 :20 a.m.
OTC Board of Commissioners' Minutes
April 2, 2013
Page 13
Shoreland Management Ordinance Revisions
Motion by Johnson, second by Rogness, and unanimously carried to establish the SMO Revisions Public
Hearing at 7:00 p.m. on Monday, April 29, 2013 at the Government Services Center in Fergus Falls.
Closed to the Public
At 11 :30 a.m., Chairman Huebsch declared the Board of Commissioners meeting closed to the public to
discuss litigation involving construction of the 60-Bed Chemical Dependency Facility. The closed session
is authorized under Attorney-Client privilege, M.S. §13D.05, Subd. 3(b). Present were all five seated
Commissioners, County Attorney, County Administrator, and Board Secretary. At 11 :45 a.m., Chairman
Huebsch declared the closed session complete and opened the Board of Commissioners meeting to the
public.
Settlement -60 -Bed Chemical Dependency Facility
Motion by Rogness, second by Froemming, and unanimously carried to approve, in concept, a settlement
agreement between the County of Otter Tail and Steen Engineering wherein the County will pay $151,100
for repair that needs to be completed at the 60-Bed CD Facility and Steen Engineering will pay $75,000
which results in a contribution from the County of $76,100.
Adjournment
At 11 :48 a.m., Chairman Huebsch declared the meeting of the Otter Tail County Board of
Commissioners adjourned until 9:30 a.m. on Tuesday. April 9, 2013.
Dated: --=Oc...t./=---=t>=-'-=---='..:,3,c__ __ _ F COMMISSIONERS
Attest ~d Lar-ryKr hn, Clerk
CB/kd
OTC Board of Commissioners' Minutes
April 2, 2013
Attachment A, Page 1
WARRANTS APPROVED ON 4/20/2013
vendor Kame
.-n1.:1J,TIS llC
. .\BRA MN FERGUS FAI.l.S
Association Of ~In Counties
Bachman Prtnnng Comparues
Baumgartner /Jane
Bob's Standard Bulk Sernce
BolstadiSusan
Brandner/Ste\'e
Breezy Pomt Reson
BRO.IN/PAL 1.
Bugbee· s Lochrn1th
Bushman I John
Bl T-MOR PARTS & SER\1CE LLC
CARGILL INCORPORATED
Central Llkes College
CO OP Senices Inc
Code -I Sernces llC
Comrmssioner Of Transponanon
Comstock Consrrucnon Of ~In
Coopers Technolog;· Group
COlL'<TIHOl'SE 09 1 c
Culligan \\'ater Condinomng
Dacotah Paper Compan,·
Domholt/J-.:athy
Double A Catenng
Egge Consrrucnon Inc
ERGOMITRJCS
ESRI INC
EYens To,mshlp
Fresonke 'Shan
GALLS UC
Griffuv Patrick
GVBRl TI :PAl'I.
Hansen: Nicole
Henning Auto Parts Inc
Herman; en·s tal
HOFF;M>\RIA'ID
Hoff/Terry
HOIUM/RICK
Hud:eby/.Roben
Innontiw Office Solutions
JP Cooke Co
A.mount
4,884 00
296.00
215.00
3 71.26
41 37
119 27
49.25
867 40
454 52
531.60
13.43
170.00
514 18
31,330.67
1,200.00
41 95
3.01 5 55
99 64
353,032 80
96.87
1.000 00
10 69
187 63
13 90
133.15
470.00
1,687.65
11,622 77
10,768.00
43.67
953 82
23 04
127 69
220.77
247 05
19 44
2,915.00
82 68
64.16
97.85
587 81
36 30
OTC Board of Commissioners' Minutes
April 2, 2013
Attachment A, Page 2
vendor Name
Jonas/Cassandra
f:ampa, Charles
f:el],· Senices Inc
i::nutson Elecmc Rebuilding
L & O Acres Trans port Inc
Lake Region Healthcare Corp
L.>J:E'> CAFE
Lakes Country Sen1ce Co Op
L-\lsiGLIE, DU.I/ Jill A
Lapos/Elizabeth
I.arum/Pat
Lawson Products Inc
LEGACY Bl:1l.DING SOLlTIONS INC
lJttle Falls Machme Inc
Macqueen EqUl])ment Inc
MllICO Inc St Lows
Mn Co lntergoyernmental Trust
MN CO RECORDERS ASSOCL-'.11O1'
:'>IN HWY SAFETY & RESEARCH CTh"TER
Mn State Bar Associanon
North .'ilnencan Salt Co
Northland BuSine% s,·stems Inc
Officemax Incorporated
Olympic Sales Inc
owrhead Door Co Of Fergus Falls
Perham Steel & Welding
OllNK ,\.1'.Tl ASSOCL-'.TES
Recycling Assoaanon Of ~IJnnesota
Rental Store/The
Research Supply & Markenng
Ridgewater College
RlliGDAHL AMBL 1.."--'°'CE INC
Rora! Tire Inc
SECRETARY OF STATE
Semce Food Super Valu
Sewer Sen1ce
SouthtO\m Of Pelican Rapids Inc
Stems Inc
Stews Sanitanon Inc
',tre1Chers
Swanston EqUipment Corp
Titan Access Account
TKT REPAIR L'°'C
Tranqwlit;-Building Sen 1ces
L'gstad Plumbing Inc
l011FOR.'liS t. 011.lMITED INC
VAllEY MORTI'ARY SER\ 1CES
\'."-I\ DYKE DVM!TERRENCE
Waletzko,.'Patnck
\\'est Pannent Center
Fin.al Total:
Amount
50 42
743. 78
207 24
222 45
2.186.99
17 5 00
394.02
147.50
660.00
55.06
70.06
1,315.53
12,460.00
2,271.22
1.309.66
558 55
90000
150.00
1,584.00
344.67
14,708.62
4,121.18
85.54
147.10
15800
39.27
1,200.00
37.50
89 78
86.99
412.55
150.00
2,365.76
120.00
15.96
160.00
471,84
2,471.14
66.46
98.93
11,858 85
249.64
169. 78
454.22
112.50
106.34
281.75
75.00
214. 70
3,616.41
498,609.79
BID TABULATION
OTC Board of Commissioners' Minutes
April 2, 2013
Exhibit A, Page 1
$19,770,000* General Obllgatlon Waste Disposal Revenue Bonds, Series 2013A
(Prairie Lakes Municipal Solid Waste Authority)
OTTER TAIL COUNTY, MINNESOTA
SALE: April 1, 2013
AWARD: BAIRD
MN CREDIT ENHANCEMENT RATING: Standard & Poor's Credit Markets "AA+"
UNDERLYING RATING: Standard & Poor's Credit Markets "AA-"
NAME OF BIDDER
BAIRD
Milwaukee, Wisconsin
C.L. King & Associates
Coastal Securities, Inc.
SAMCO Capital Markets
Kildare Capital
Cronin & Co,, Inc.
Edward Jones
Loop Capital Markets
Crews & Associates, Inc.
Davenport & Co. L.L.C.
lncapital, LLC
Sterne, Agee & Leach, Inc.
Ross, Sinclaire & Associates, LLC
Northfand Securities, Inc.
CaslleOak Securities, L.P.
Wedbush Securities Inc
Dougherly & Company, LLC
Bernardi Securities, Inc.
MATURITY
(November 1)
2015
2016
2017
2018
2019
2020
2021
2022
2023 2024 ..
2025°
2026°
2027"
2028'·
2029**
2030"
2031··
2032 ..
2033 ..
2034
RATE
2,000%
2.000%
3.000%
3.000%
3.000%
3.000%
3.000%
3.000%
3.000%
3.400%
3.400%
3.400%
3.400%
3.400%
3.400%
3.400%
3.400%
3.400%
3.400%
3.750%
REOFFERING
YIELD
0.700%
0.800%
1.050%
1.300%
1.550%
1.800%
2.050%
2.250%
2.450%,
3.400%
3.400%
3.400%
3.400%
3.400%
3.400"/o
3.400%
3.400%
3.400%
3.400%
3.750%
"Subsequent to bid opening the issue size was decreased to $19,380,000.
Adjusted Price~ $19,638,600.31 Adjusted Net Interest Cost~ $8,928,119.12
PRICE
NET
INTEREST
COST
BBi: 3.99%
TRUE
INTEREST
RATE
$20,050,692.20 $8,960,405.26 3.2246%
Adjusted TIC -3.2388%,
**$11,065,000 Term Bond due 2033 with mandatory redemption In 2024~2032 (Adjusted amount of $11,070,000}
Minnesota
Offices also fn W1sconsi11 and lllinoi5
phone
la,
651-697-13500
651-697-8555
3060 Centre Pointe Dr1xe
RosevillA, Mr-J 55113-11-l':2
OTC Board of Commissioners' Minutes
April 2, 2013
Exhibit A, Page 2
$19,770,000 General Obligation Waste Disposal
Authority)
Revenue Bonds, Serles 2013A (Prairie Lakes Municipal Sol!d Waste
Page 2
Otter Tail County, Minnesota
NAME OF BIDDER
HUTCHINSON, SHOCKEY. ERLEY & CO
Chicago, Illinois
PIPER JAFFRAY & CO
Minneapolis, Minnesota
MATURITY
{Noveinbcr 1)
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
?032
2033
20'.34
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
RATE
3.000'%
4.000%
4.000%
4.000%
4.000¾
4.000%
4.000%
3.000%
3.000%
3.000%
3.000%
3.000%
4.000%
4.000%
3.250%
3.250%
3.500¾
3.500%
4.000%
4.000%
3.000%
3.000%
3.000% ::moo%
3.000%
4.000%,
4.000%
4.000%
4.000'%,
3.000%
3.000%
3.375%
3.500%
3.625%
3.625%
3.750%
4.000%
4.000%
4.000"/o
4.000%
REOFFERING
YIELD
PRICE
NET
INTEREST
COST
TRUE
INTEREST
RATE
$20,423,800.06 $9,317,513.69 3.3212%
$20,139,535.15 $9,961,629.52 3,5733%
4