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HomeMy WebLinkAboutBoard of Commissioners - Minutes - 11/02/2004..J • • • MINUTES OF THE OTTER TAIL COUNTY BOARD OF COMMISSIONERS Government Services Center, 500 Fir Ave. W . Commissioners' Room Tuesday, November 2, 2004 9:30 a.m. Call to Order The Otter Tail County Board of Commissioners convened Tuesday, November 2, 2004, at 9:30 a.m. at the Otter Tail County Government Services Center with Commissioners Syd Nelson, Chair; Bob Block, Vice-Chair; Roger Froemming, Dennis Mosher, and Malcolm Lee present. Approval of Agenda Motion by Mosher, second by Nelson, and unanimously carried to approve the County Board agenda of November 2, 2004, with the following addition: 10:25 a.m. -Ditch Inspector, Randy Wasvick Approval of Minutes Motion by Froemming, second by Lee, and unanimously carried to approve the County Board minutes of October 26, 2004, as mailed. Approval to Pay Bills Motion by Lee, second by Mosher, and unanimously carried to approve payment of the County Board bills per Attachment A of the official minutes. Wetland Information Land & Resource Director, Bill Kalar, presented a map of Otter Tail County developed by the GIS Department showing all lakes and wetlands that have been identified on the national wetlands inventory map. Total,acreage of the map is 1,423,949 acres, and of that, the map shows 343,511 acres of water which is about 24%. A proposal had been submitted to the County Board to require a 50 ft. buffer around all wetlands. If Otter Tail County implemented that figure, with the high volume of water in the County, 30% of the County would not be buildable. There were 22,982 E911 addressed structures also identified on the map. Of the 22,982 structures, 1,023 structures are within 50 ft. of a wetland which is approximately 4%. This map and data will be shared with the newly organized Shoreland Rules Revision Committee. Final Plats Motion by Froemming, second by Block, and unanimously carried to approve the Firial Plat of Marvin Hardekopf and Steven Schmidt known as "Prairie West" located in Section 20 of Parkers Prairie Township on Clarno Lake (56-29). Motion by Nelson, second by Froemming, and unanimously carried to approve the Final Plat of Triple T Investments known as Otter Tail Inlet Estates located in Section 27 of Rush Lake Township on Mud Lake (56-215) . OTCo. Board of Commissioners' Minutes November 2, 2004 Page 2 Conditional Use Permit Extension Requests Motion by Froemming, second by Mosher, and unanimously carried to approve an extension of Conditional Use Permit #6174 until November 15, 2004, to allow for building a road to service the plat of Sunnybend, as recommended by the Land & Resource Director. Motion by Froemming, second by Mosher, and unanimously carried to approve an extension of Conditional Use Permit #6172 until November 15, 2004, on Otter Tail Lake for Robert Kiley to allow for some earthmoving to provide access to the garage to complete construction of the home over the winter. Payment Approvals Motion by Lee, second by Block, and unanimously carried to approve payment to Roland Aho, in the amount of $140.00, for the removal of beaver from Otter Tail County Drainage System No. 29. Motion by Mosher, second by Lee, and unanimously carried to approve the following ditch viewer expenses: Eddie Bernhardson Bob Kloubec $195.86 $288.53 0 Motion by Froemming, second by Lee, and unanimously carried to accept the estimate from Christensen Construction, in the amount of $5,500 to $6,400, for removal of basement Q materials and for filling and leveling three tax forfeited sites in Clitherall City. Motion by Lee, second by Mosher, and unanimously carried to approve payment to National Business Systems, Inc., in the amount of $16,000.00, for Truth in Taxation postage. Sale of Surplus Property Motion by Mosher, second by Froemming, and unanimously carried to authorize the County Auditor to proceed with the process to sell the following described parcel: 61-000-28-0135-002 Section 28, Township 131, Range 44 Gravel Pit #76 in Northwest Quarter (2 Acres) Approval of Liquor License Application Motion by Nelson, second by Block, and unanimously carried to approve the following application for license: Play Time Sports Bar and Ballroom, Inc. On-Sale Intoxicating Liquor and Sunday Liquor Perham, MN 56573 Bond Refunding Discussion Carolyn Drude of Ehlers & Associates, presented information to determine the appropriate time to advance refund the G.O. Veterans Home Bonds. She presented a Preliminary Offering Memorandum and stated that the total savings after expenses to refinance at this time would beh$109,230.3 1 7. bLatrtrydDbornEholf Do&rnA& Co_mtpany dstattedt dthtaht ht ihs propo 1 dsal wtahs Q very close to t e proposa su mI e y ers ssocIa es an s a e a e wou wa c future financing opportunities with Otter Tail County. OTCo. Board of Commissioners' Minutes November 2, 2004 Page 3 Chairman Nelson announced that, at 10:15 a.m., the meeting was convened to consider a proposal for the purchase of General Obligation Veterans Home Refunding Bonds, Series 20048 of the County. A Resolution Authorizing and Awarding Sale of General Obligation Veterans Home Refunding Bonds, Series 20048, Fixing the Form and Specifications Thereof, Providing for their Execution and Delivery and Levying Taxes for their Payment, was then duly approved as Otter Tail County Resolution No. 2004 -54 and attached to these official minutes as Attachment B. Release of Highway Easement Otter Tail County Resolution No. 2004 -53 WHEREAS, a request has been made for the release of a highway easement adjacent to County State Aid Highway #1; and WHEREAS, the property is no longer needed for road right-of-way purposes, as the property is no longer included in the road right-of-way as it is currently being used; and WHEREAS, the property is described as: All that part of a Public Highway in Government Lot 5 of Section 12, Township 134 North, Range 40 West, as shown on the plat of CAMP HATTON, according to the recorded plat on file and of record in the Office of the Recorder of Otter Tail County, Minnesota, described as follows: Commencing at the most westerly corner of Lot 19 of said plat; thence on an assumed bearing of North 64 degrees 03 minutes 46 seconds West along the northwesterly extension of the southwesterly line of said Lot 19, a distance of 15.93 feet to the southeasterly right-of-way line of County State Aid Highway No. 1; thence southwesterly along said southeasterly right-of-way line, on a non- tangential curve, concave to the southeast, having a radius of 2831.79 feet, a delta angle of 2 degrees 02 minutes 34 seconds and a chord bearing of South 24 degrees 36 minutes 40 seconds West, for an arc distance of 100.96 feet to the point of beginning of the land to be described; thence continuing southwesterly along said southeasterly right-of-way line, on said curve, concave to the southeast, having a radius of 2831.79 feet, a delta angle of 1 degree 35 minutes 39 seconds and a chord bearing of South 22 degrees 47 minutes 33 seconds West, for an arc distance of 78.79 feet; thence South 21 degrees 59 minutes 43 seconds West along said southeasterly right-of-way line, a distance of 27.90 feet; thence southwesterly along said southeasterly right-of-way line, on a non-tangential curve, concave to the northwest, having a radius of 442.26 feet, a delta angle of 2 degrees 18 minutes 26 seconds and a chord bearing of South 23 degrees 08 minutes 57 seconds West, for an arc distance of 17.81 feet to the westerly extension of the southerly line of Lot 20 of said CAMP HATTON; thence South 79 degrees 26 minutes 20 seconds East along said westerly extension of the southerly line of Lot 20, a distance of 30.93 feet to the most westerly corner of said Lot 20; thence North 23 degrees 51 minutes 29 seconds East along the easterly line of said Public Highway as shown on the plat of CAMP HATTON a distance of 117.51 feet to the intersection with a line which bears South 66 degrees 24 OTCo. Board of Commissioners' Minutes November 2, 2004 Page 4 minutes 37 seconds East from the point of beginning; thence North 66 degrees 24 r'\ minutes 37 seconds West a distance of 32.69 feet to the point of beginning. " ; Upon the motion of Froemming, seconded by Lee, on the 2nd day of November, 2004, and passed on a 5 -0 vote, the County's road easement on the above-described property is hereby vacated. Adopted this 2nd day of November, 2004. Dated:_-'-'114 /J...J/i>w.i/--"o:..:it./1..--__ _ I I Att~I ~ ~ Larry~ Clerk Release of Highway Easement Otter Tail County Resolution No. 2004 -52 WHEREAS, a request has been made for the release of a highway easement adjacent to County State Aid Highway #1; and WHEREAS, the property is no longer needed for road right-of-way purposes, as the property is no longer included in the road right-of-way as it is currently being used; and WHEREAS, the property is described as: All that part of a Public Highway in Government Lot 5 of Section 12, Township 134 North, Range 40 West, as shown on the plat of CAMP HATTON, according to the recorded plat on file and of record in the Office of the Recorder of Otter Tail County, Minnesota, described as follows: Beginning at the most westerly corner of Lot 19 of said plat; thence on an assumed bearing of North 64 degrees 03 minutes 46 seconds West along the northwesterly extension of the southwesterly line of said Lot 19, a distance of 15.93 feet to the southeasterly right-of-way line of County State Aid Highway No. 1; thence southwesterly along said southeasterly right-of-way line, on a non- tangential curve concave to the southeast, having a radius of 2831.79 feet, a delta angle of 2 degrees 02 minutes 34 seconds and a chord bearing of South 24 degrees 36 minutes 40 seconds West, for an arc distance of 100.96 feet; thence South 66 degrees 24 minutes 37 seconds East, a distance of 32.69 feet to the easterly line of a PUBLIC HIGHWAY per said plat; thence North 23 degrees 51 minutes 29 seconds East along said easterly line, a distance of 7.49 feet; thence North 14 degrees 23 minutes 54 seconds East continuing along said easterly line, a distance of 94.00 feet to the point of beginning. • • • ... ;;~ . .-t·;: :,: -----~i· ;;-~ -~ -_ ,--~-." r~:-r,,,,,~ • ·1:.,.-\'~, .... -. -,-, ·, ... ,a ,f•· 'h,,-:-"/5'.,~~!- ;.QTCO. Board of Commissioners' Minutes ' November 2, 2004 Upon the motion of Froemming, seconded by Block, on the 2nd day of November, 2004, and passed on a 5 -0 vote, the County's road easement on the above-described property is hereby vacated. Adopted this 2nd day of November, 2004. Dated: _ ___:_1::..ii/-"1'.,_f,__,o"-'t.J1--__ _ I ~ Final Payment-S.A.P. 56-650-06, Etc. Page 5 Motion by Nelson, second by Block, and unanimously carried to approve Final Estimate No. 5 for Riley Bros. Construction, Inc. for completion of S.A.P. 56-650-06, Etc. The final cost of the project was $669,701.06 and Riley Bros. Construction has paid the County the money due, in the amount of $430.71, which was the result of a previous overpayment. County Ditch No. 18 Ditch Inspector, Randy Wasvick, presented a request from the US Fish & Wildlife Service to replace approximately 300 ft. of tile from a permanent easement. The wetlands flow toward US Hwy 210 to an area where there is another standpipe in farmable wetland which is working. The water will be held at the level of the permanent easement. Motion by Lee, second by Mosher, and unanimously carried to authorize the US Fish & Wildlife Service to replace tile in the County Ditch No. 18 System as described and recommended by the Ditch Inspector. MCIT Voting Delegates County Coordinator, Larry Krohn, confirmed the MCIT voting delegates at the Annual AMC meeting on December 6, 2004, at 1 :00 p.m., as Commissioners Robert Block and Sydney Nelson. Adjournment At 10:54 a.m., Chairman Nelson adjourned the meeting of the Otter Tail County Board of Commissioners until Tuesday, November 9, 2004. Dated:_--L.Jl(L..l/'-"'Jt,1>4--'/ o"-'<f'+-----1 i . 0 .. ..;. .. ~ • .. ,:.,,Otter Tail County Warrants .. · · November 2, 2004 Page 1, Attachment A • ll/02/2004 12:16:29 OTTER TAIL COUNTY AUDITOR PANELSON RECEIPTS AND DISBURSEMENTS SYSTEM WARRANTS FOR PUBLICATION IFD66 COUNTY 56 PAGE l • • WARRANTS APPROVED ON ll/02/2004 FOR PAYMENT ll/02/2004 VENDOR NAME A-l LOCK AND KEY AGGREGATE INDUSTRIES INC ALL CREATURES VET HOSPITAL SCOTT ANDERSON ASSOCIATION OF MN COUNTIES BEAR GRAPHICS INC DAVID BERG BEYER BODY SHOP INC BOBCAT OF OTTER·TAIL COUNTY CALL ONE INC CHERI CLARK COOPERS TECHNOLOGY GROUP DOCUTECH CONSULTING FEDERAL LICENSING INC FERGUS FALLS-MEDICAL GROUP FERGUS FALLS NEWSPAPERS INC FERGUS FALLS SMALL ENGINE & TR FERGUS INTERNATIONAL INC FERRELLGAS MICHAEL FIEDLER . BERNARD GAMBER GARAGE DOOR STORE NEILL HARDINA HILLTOP LUMBER INC HOLIDAY CREDIT OFFICE SHELDON HOLM INNOVATIVE OFFICE SOLUTIONS INSIGHT PUBLIC SECTOR INTERTECHNOLOGIES GROUP SHARON JEWELL ERWIN JOHNSON KEEPRS KELLY SERVICES.INC KOEP'S CLITHERALL CORNER KRS TRANSPORT LTD LAKELAND MENTAL HEALTH CENTER LAKES COUNTRY SERVICE CO OP LARRY·OTT INC TRUCK SERVICE MATTHEW BENDER & COMPANY INC MCCC MI 33 WENDY METCALF MIDWESTERN MAT RENTAL & SUPPLY MN CO ATTORNEYS ASSOCIATION MN MOTOR COMPANY MN SAFETY COUNCIL KURT MORTENSON DENNIS MOSHER JIM MYHRE NATIONAL BUSHING & PARTS CO AMOUNT 39.75 7,122.65 76.85 199.80 20.00 434.41 27.98 69.23 420.20 65l. 32 209.80 42.69 200.00 175.00 2,300.00 144.00 48.00 5.83 94;52 7.41 53.25 514.89 105.00 29.36 319.57 106.11 979.23 665.63 900.00 12.72 120.00 7,335.00 540.38 269.00 384.00 2,726.46 . 900.00 2,060.00 55.86 53l.l2 132.50 240.94 315.00 48.80 35.00 24.36 75.39 192.09 39.72 Otter Tail County Warrants November 2, 2004 Page 2, Attachment A IFD66 COUNTY 56 11/02/2004 12:16:29 OTTER TAIL COUNTY AUDITOR P.llliELSON RECEIPTS ANTI DISBURSEMENTS SYSTEM WARRANTS FOR PUBLICATION PAGE 2 WARR.llliTS APPROVED ON 11/02/2004 FOR PAYMENT 11/02/2004 VENDOR NAME NELSON BROS PRINTING .NELSON DODGE GMC NEW EAGLE INTERNATIONAL OFFICE DEPOT OLSON OIL CO INC OTTER TAIL CO TREASURER OTTER TAIL TELCOM PAMIDA INC 008 VIRGINIA PAULSON PELICAN RAPIDS PRESS PERHAM AREA EMS PETE ' S AMOCO HENRY PRICE PRODUCTIVE ALTERNATIVES INC PSYCHOLOGY SERVICES OF SOUTH M PUBLIC SAFETY CENTER.INC RAYMOND LEE SAND & GRAVEL & EX SCHMITZ FORD INC SOLUTIONS INC DAVID THOMPSON TRI STAR RECYCLING UNIVERSITY OF MN UNIVERSITY OF MN-EXTENSION SER VERGAS 66 VICTOR LUNDEEN COMPANY VIKING OFFICE PRODUCTS WALTERS PHOTOGRAPHY WEST GROUP PAYMENT CTR LUCAS WESTBY FINAL TOTAL ...... . AMOUNT 658.18 20.67 2,790.00 81.41 262.30 1,124.53 13.79 6.38 50.00 466.85 291.07 43.00 150.00 422.92 4,800.00 464.15 1,552.77 236.78 300.00 155.00 4,498.00 13,422.00 127.48 142.05 30.83 411. 98 18.94 368.00 60.00 $64,969.90 **** • 0 () 0 • • • Otter Tail County Board Minutes November 9, 2004 Attachment B Extract of Minutes of Meeting of the Board of Commissioners of Otter Tail County, Minnesota 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 Courthouse in Fergus Falls, Minnesota on Tuesday, the 2nd day of November, 2004, at 11 :00 o'clock A.M. The following members were present: Sydney Nelson, Malcolm Lee, Dennis Mosher, Roger Froemming, Robert Block and the following were absent: None * * * * * * * * * The Chair announced that the meeting was convened to consider a proposal for the purchase of General Obligation Veterans Home Refunding Bonds, Series 2004B of the County . Member Lee introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING AND A WARDING SALE OF GENERAL OBLIGATION VETERANS HOME REFUNDING BONDS, SERIES 2004B, FIXING THE FORM AND SPECIFICATIONS THEREOF, PROVIDING FOR THEIR EXECUTION AND DELIVERY AND LEVYING TAXES FOR THEIR PAYMENT BE IT RESOLVED by the Board of Commissioners of Otter Tail County, Minnesota, as follows: I. The following proposal to purchase the General Obligation Veterans Home Refunding Bonds, Series 2004B of the County, is hereby found and determined to be the most favorable offer received, without advertisement for bids as permitted by Minnesota Statutes, Section 475.60, and is hereby accepted: Purchaser United Banker's Bank Interest Rates Below Price (plus accrued interest) ~1,040,550'.0q The Treasurer shall retain the good faith deposit of the purchaser until delivery of the Bonds and receipt of the purchase price, and shall return the wires, checks or drafts of the unsuccessful bidders forthwith. 2. The County has heretofore issued its General Obligation Veterans Home Bonds, Series 1996A (the "Series 1996A Bonds"). It is hereby determined to be necessary and expedient to refund a portion of the Series 1996A Bonds pursuant to Minnesota Statutes, Section 475.67. In accordance with Minnesota Statutes, Section 475.67, Subd. 13, the County will apply the proceeds of the Bonds hereinafter described and other available funds pursuant to an Escrow Agreement (the "Escrow Agreement") between the County and U.S. Bank National Association, in St. Paul, Minnesota. Amounts available under the Escrow Agreement will be sufficient to pay interest on all of the Bonds to and including February I, 2006 and to redeem the outstanding principal amount of the Series I 996A Bonds on February I, 2006 at par. The County shall forthwith issue its General Obligation Veterans Home Refunding Bonds, Series 2004B, in the aggregate principal amount of&l,050,00q, to be dated December I, 2004, to bear interest, payable semiannually on February I and August I in each year, commencing August I, 2005, and to mature on February I in the years and amounts, as follows: 0 • • • Interest Interest Year Amount Rate Year Amount Rate 2007 $ 95,000 2012 $ 105,000 2008 90,000 2013 1110,oog 2019 95,000 2014 115,000 2010 100,000 2015 115,000 2011 [100,ooq 2016 125,000 The Bonds shall be numbered from R-1 upwards in order of issuance or in such other order as the Registrar may determine and shall be in denominations of $5,000 each or any integral multiple thereof. 3. All Bonds maturing on or after February 1, 2014 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 February 1, 2013 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. 4. During such time as the Bonds are registered in the name of Cede & Co., as nominee of Depository Trust Company, New York, New York, the Bonds are subject to the terms of the Blanket Letter of Representations heretofore approved, which terms are hereby incorporated herein by reference. Reference is hereby made to paragraph 7 hereof and to the Letter of Representations for the payment and notice requirements covered thereby. 5. The Bonds, the Registrar's Authentication Certificate, and the form of assignment shall be in substantially the following form (which may be printed partly on the front and partly on the back): -2- No.R- UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF OTTERTAIL $ ______ _ GENERAL OBLIGATION VETERANS HOME REFUNDING BOND, SERIES 2004B Interest Rate Maturity Date Registered Owner: Cede & Co. Principal Amount: Date of Original Issue December 1, 2004 CUSIP Otter Tail County, a duly organized county and political subdivision of the State of Minnesota, for value received, hereby promises to pay to the Registered Owner or 0 registered assigns, the Principal Amount specified above on the Maturity Date specified Q 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 the Date of Original Issue, or the most recent interest payment date to which interest has been paid or duly provided for as specified below, on February I and August I of each year, commencing August I, 2005, until said Principal Amount is paid. Principal and the redemption price is payable in lawful money of the United States of America at the office of U.S. Bank National Association, in St. Paul, Minnesota, as Registrar, or of a successor Registrar designated by the County, which designation shall be made upon 30 days' notice to the registered owners at their registered addresses. Interest shall be paid on each February I and August I interest payment date by check or draft mailed ( or, pursuant to a written agreement between the Registrar and the Registered Owner, by wire transfer) to the person in whose name this Bond is registered at the close of business on the fifteenth day of the month preceding each such interest payment date (whether or not a business day) at said person'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. -3- 0 • • • This Bond is one of an issue of Bonds in the aggregate principal amount of ~1,050,00q, all of like date and tenor except as to maturity date, redemption privilege, denomination and interest rate, issued pursuant to and in full conformity with the Constitution and Laws of the State of Minnesota, including Minnesota Statutes, Chapter 475, for the purpose of refunding in advance of maturity portions of the County's outstanding General Obligation Veterans Home Bonds, Series 1996A in accordance with Minnesota Statutes, Section 475.67, all as more fully set forth in the Resolution described below. The Bonds of this series maturing on or after February I, 2014 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 February I, 2013 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. During such time as this Bond is registered in the name of Cede & Co., as nominee of Depository Trust Company, New York, New York ("DTC"), the method of payment, notice of redemption and certain other matters are subject to the terms of a Letter of Representations executed by the County and DTC as of the date of issuance of the Bonds as such Letter of Representations may be amended from time to time. The principal of and interest on the Bonds of this series are payable primarily from and are secured by general ad valorem taxes heretofore levied and certain escrow account investments as described in the Resolution, and the full faith and credit of the County is hereby pledged to the prompt payment of the principal of and interest on the Bonds, and the County is obligated to levy additional ad valorem taxes on all taxable property in the County's boundaries, if necessary for such purpose, without limitation as to rate or amount. -4- This Bond is transferable, as provided by the Resolution of the Board of Commissioners authorizing the issuance of the Bonds of this Series adopted November 2, 0 2004 (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 aggregate principal amount, maturity date 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. 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, maturity and interest rate 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 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, 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. Prior to the issuance hereof general ad valorem taxes have been duly levied upon all of the taxable property within the County's boundaries in the years and amounts as required by law and additional general ad valorem taxes may be levied on all of said property if necessary to pay the Bonds, without limitation as to rate or amount. For the prompt and full payment of the principal of and interest on the Bonds as the same become due the full faith and credit of the County have been and are hereby pledged. 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. -5- 0 • • • 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 of the Board of Commissioners and b the facsimile signature of the County Auditor, all as of the Date of Original Issue speci e ab ve. ~ -6- 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. U.S. BANK NATIONAL ASSOCIATION as 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 _________ to transfer the within Bond on the books kept for registration thereof, C) with full power of substitution in the premises. Dated: Please Insert Social Security Number or Other Identifying Number of Assignee 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. · 6. The Bonds shall be payable upon presentation at the main office of U.S. Bank National Association, in St. Paul, Minnesota, as the initial Paying Agent, Registrar, and Transfer Agent (the "Registrar"), and interest shall be paid by check or draft mailed to the registered owners at their addresses shown on the registration books ( or, pursuant to a written agreement between the Registrar and the registered owner, by wire transfer). The County reserves the right to replace such initial Registrar with a bank or trust company authorized by law to conduct such business. In such event the Chair of the Board of Commissioners and the County Auditor shall execute and deliver, on behalf of the County, a contract with the -7- • successor Registrar. Upon merger or consolidation of any successor Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The County agrees to pay the reasonable and customary charges of any Registrar for the services performed. The County reserves the right to remove any corporate Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar. In the event of any change in Registrar, the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. 7. (a) For purposes of this paragraph 7, 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 ofDTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean Depository Trust Company, New York, New York. • "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, heretofore executed by the County, which shall apply to the Bonds. (a) 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 ofDTC. The Registrar and the County may treat DTC (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 DTC 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 -8- accuracy of any records maintained by DTC 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 DTC or any Participant of any person to receive payment in the event of a partial redemption of t~e 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 ( t) hereof. (b) 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 DTC and the Registrar, whereupon DTC shall notify the Participants, of the availability through DTC of Bond certificates. In such event, the Bonds will be transferable in accordance with subparagraph (t) 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 (t) hereof. ( c) 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. ( d) The execution and delivery of the Representation Letter to DTC by the Chair of the Board of Commissioners or the County Auditor, is hereby confirmed and shall apply to the Bonds. The Representation Letter sets 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. ( e) 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 -9- 0 0 0 exchanged and appropriate instruments of transfer to the permitted transferee in accordance • with the provisions of paragraph 9 hereof. • • 8. The Bonds shall be prepared in typewritten or printed form under the direction of the County Auditor and when so prepared shall be executed on behalf of the County by the manual or facsimile signature of the Chair of the Board of Commissioners and by the mill]cual or facsimile signature of the County Auditor. The Bonds shall not be valid for any purpose until authenticated by the Registrar. The_]~onds initially issued hereunder shall be registered as of December 1, 2004, 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 DTC by the County Auditor or the County Auditor's designee( s) upon receipt of the purchase price and accrued interest and the signed legal opinion ofFaegre & Benson, as Bond Counsel, and the purchaser shall not be required to see to the proper application of the proceeds. 9. 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 and 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 called -10- for redemption or to make any such exchange or transfer of Bonds during the fifteen ( 15) dfays ~ext pfrecdeding !he ?atehofthe fifrst publicatdiondor the_mailfinBg (ifdthere is nokpublicatiohn) Q o notice o re emption m t e case o a propose re empt10n o on s or to ma e any sue exchange or transfer of Bonds during the fifteen (15) days next preceding any February I or August I interest payment date. I 0. 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 fifteenth 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 owner on the relevant regular record date solely by virtue of such owner having been such owner; and such defaulted interest may be paid by the County in any lawful manner. 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. 11. 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. 12. The Escrow Agreement is hereby approved and shall be executed by the Chair and the County Auditor in substantially the form on file with all such changes therein as shall be approved by the officers executing the same, which approval shall be conclusively evidenced by the execution thereof. The proceeds of the Bonds and such additional sums as may be necessary to accomplish the purposes thereof are hereby appropriated to the purposes specified therein. The Series 1996A Bonds maturing in the years 2007 to 2016, inclusive, are hereby called for prior redemption on February 1, 2006. Taxes levied for payment of Series 1996A Bonds following the redemption date thereof may be cancelled to the extent permitted by Minnesota Statutes, Section 475.61, Subd. 3. Notice of such redemption shall be given as provided in the Escrow Agreement. The sufficiency of amounts deposited under the Escrow Agreement and the computations evidencing compliance with the arbitrage requirements of Section 148 of the Internal Revenue Code of 1986 shall be verified by McGladrey & Pullen, LLP, certified public accountants. -l 1- 0 0 • • • Securities purchased from the monies in the Escrow Fund shall be limited to securities specified in Minnesota Statutes, Section 475.67, Subdivision 8 or an investment agreement described in Section 475.67, Subdivision 13. Securities purchased for the Escrow Fund shall be purchased simultaneously with the delivery of and payment for the Bonds. The County Auditor or any officer are authorized and directed to purchase such securities. 13. For the convenience and proper administration of the moneys to be borrowed and repaid on the Bonds, and to make adequate and specific security to the Purchaser and holders from time to time of the Bonds, there is hereby created a special fund to be designated the "Refunding Bonds of 2004 Fund" (the "Fund") to be administered and maintained by the 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 all of the Bonds and the interest thereon shall have been fully paid. To the Fund there is hereby pledged and irrevocably appropriated and there shall be credited: (1) any collections of all taxes hereafter levied for the payment of the Bonds and interest thereon; (2) all investment earnings on funds in the Fund; (3) all funds required to be transferred to the Fund under the Escrow Agreement; and ( 4) any and all other moneys which are properly available and are appropriated by the Board of Commissioners to the Fund. The amount of any surplus remaining in the-Fund when the Bonds and interest thereon are paid shall be used as provided in Minnesota Statutes, Section 475.61, Subdivision 4. The moneys in the Fund shall be used solely to pay the principal of and interest on the Bonds or any other bonds hereafter issued and made payable from the Fund. For the prompt and full payment of the principal 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 Fund is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the County which are available for such purpose, and such other funds may be reimbursed with or without interest from the Fund when a sufficient balance is available therein. To provide moneys for payment of the principal and interest on the Bonds, there is hereby levied upon all of the taxable property in the County as direct annual ad valorem taxes to be spread upon the tax rolls and collected with and as part of other general property taxes in the County. Said levies are for the years and in the amounts as follows: -12- LevrYear Collection Year Amount 2005 2006 2006 2007 2007 2008 eeattache 2008 2009 I~l;i:caM_iatio 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 The tax levies are such that if collected in full they, together with estimated collections of investment earnings amounts available under the Escrow Agreement and other revenues herein pledged for the payment of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds are outstanding and unpaid, provided that the County reserves the right to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 14. The Offering Memorandum relating to the Bonds, on file with the County Auditor and presented to this meeting, is hereby approved and its designation as a "near final" Official Statement for purposes of Rule 15c2-12 of the Securities and Exchange Commission and the furnishing thereof to prospective purchasers of the Bonds are hereby ratified and confirmed, insofar as the same relates to the Bonds and the sale thereof. The Continuing Disclosure Certificate included in the Offering Memorandum is hereby approved and shall be executed and delivered in connection with the delivery of the bonds to the Purchaser. 15. The officers of the County are hereby authorized and directed to prepare and furnish to the purchaser of the Bonds and to the attorneys approving the same, certified copies of all proceedings and records of the County relating to the power and authority of the County to issue said Bonds within their knowledge or as shown by the books and records under their custody and control, including a no-litigation certificate, a no-arbitrage certificate, an addendum to the Offering Memorandum as may be required by law and a certificate as to the Offering Memorandum, and such certified copies and certificates shall be deemed representations of the County as to the facts stated therein. 16. 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 ·- 0 0 0 • (the "Code"), by the 15th day of the second calendar month after the close of the calendar • quarter in which the Bonds are issued. 17. The County Auditor shall furnish a certified copy of this Resolution to the County Auditor of Otter Tail County and obtain the certificate as to registration as required by Minnesota Statutes, Section 475.63. 18. The County shall not take or permit any action that would cause the Bonds to be "private activity bonds" within the meaning of Section 141 of the Code. The County shall comply with the rebate requirements imposed under Section 148(t) of the Code and regulations thereunder, including (if applicable) the requirement to make periodic calculations of the amount subject to rebate thereunder and the requirement to make all required rebates to the United States. 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 Auditor or Business Manager are hereby authorized to make any elections or waivers under Section 148 of the Code on behalf of the County as deemed appropriate. All terms used in this paragraph 18 shall have the meanings provided in the Code and regulations thereunder. 19. The Bonds are designated as "qualified tax exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986. • 20. The provisions of this Resolution shall be deemed covenants for the • benefit of the registered owners, from time to time, of the General Obligation Veterans Home Refunding Bonds, Series 2004B. The motion for the adoption of the foregoing resolution was duly seconded by Member Block and upon vote being taken thereon the following voted in favor thereof: Nelson, Lee, Froemming, Block and the following voted against the same: None J and the following abstained: Mosher whereupon said resolution was declared duly passed and adopted . -14- STATE OF MINNESOTA ) ) COUNTY OF OTTER TAIL) ss. I, the undersigned, being the duly qualified and acting County Auditor of Otter Tail County, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the Board of Commissioners of said County held November 2, 2004, with the original thereof on file and of record in my office and the same is a full, true and complete transcript therefrom insofar as the same relates to the issuance and sale of~l,050,00q General Obligation Veterans Home Refunding Bonds, Series 2004B of the County. WITNESS My hand officially as such County Auditor, said County having no corporate seal, this __ day of November, 2004. County Auditor Ml:1154126.01 -15- • () () () • Tax Levy Calculation For: Otter Tail County, Minnesota $1,050,000 General Obligation Veterans Home Refunding Bonds, Series 2004B Dated Date: 12/1/2004 Levy Collect Pay Total P&I Net Tax Year Year Year P&I X 105% Levy Levy 2005 I 2006 I 2007 127,277.50 133,641.38 133,641.38 133,700 2006 I 2007 I 2008 120,330.00 126,346.50 126,346.50 126,400 2007 I 2008 I 2009 123,260.00 129,423.00 129,423.00 129,500 2008 I 2009 I 2010 125,790.00 132,079.50 132,079.50 132,100 2009 I 2010 I 2011 122,940.00 129,087.00 129,087.00 129,100 2010 I 2011 I 2012 124,890.00 131,134.50 131,134.50 131,200 2011 I 2012 I 2013 126,530.00 132,856.50 132,856.50 132,900 2012 I 2013 I 2014 127,790.00 134,179.50 134,179.50 134,200 2013 I 2014 I 2015 123,765.00 129,953.25 129,953.25 130,000 2014 I 2015 I 2016 129,625.00 136,106.25 136,106.25 136,200 • Totals 1,252,197.50 1,314,807.38 1,314,807.38 1,315,300.00 Excess bond proceeds in the amount of $47.45 (contingency} will be deposited into the Debt Service Fund for the Series 2004B Bonds. ' Note: Original tax levies for collection years 2006 through 2015 on the Series 1996A Bonds will be cancelled. e EHLERS 6 ASSOCIATES INC • 0 0 0