The Meeting Was Called to Order by Vice Chair Warmka

FARIBAULT COUNTY

BOARD OF COMMISSIONERS

OFFICIAL PROCEEDINGS

AUGUST 7, 2001

The Faribault County Board of Commissioners met in regular session at the Courthouse in the City of Blue Earth at 9:00 a.m. on August 7, 2001. The following members were present: Virgil Klatt, Paul Meyer, Ralph Prescher, and Tom Warmka Commissioners. Commissioner Lein was absent. Auditor John Thompson and County Attorney Brian Roverud were also present.

The meeting was called to order by Vice Chair Warmka.

The pledge of allegiance was recited.

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Prescher/Meyer motion carried to approve the synopsis and the official proceedings of the regular meeting July 17, 2001 and the ditch hearing July 23, 2001.

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Prescher/Meyer motion carried unanimously to approve agenda of August 7, 2001.

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The calendar was updated. Committee reports were presented.

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During public comment period Gordon Wertjes met to discuss repair petition on JD9. A letter from the County Auditor was read.

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Treasurer David Frank met regarding ISTS loans and grants.

Prescher/Klatt motion carried unanimously to approve the following ISTS loans and grants: grant of $7,439.75 to Gilbert Ehrich on Parcel No. 07.006.0300 in Elmore Township; grant of $5,000 (two homes) to Evelyn Hill on Parcel No. 18.010.1000 in Verona Township; loan of $3,326.32 to Richard Kanzenbach on Parcel No. 09.008.3400 in Foster Township; loan of $2,124.80 to Tim Oren on Parcel No. 17.004.0700 in Seely Township; and loan of $4,371.85 and grant of $2,500 to David Pfaffinger on Parcel No. 02.006.0802 in Blue Earth Township.

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Maurine Hoffman of the VFW Auxiliary met to request permission to erect a statue on the courthouse lawn to commemorate veterans.

Prescher/Klatt motion carried unanimously to have the Building & Grounds committee consider the request to erect a statute on the courthouse lawn to commemorate veterans.

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Probation Officer Joe Fox met regarding office business. Out of home placements are down.

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Public Works Director John McDonald met regarding office business. A construction update was given to the board.

Prescher/Meyer motion carried unanimously to approve the purchase of a Ricoh AFICIO 1035 copier from Metro Sales Inc. of Fairmont for $8,000. Other bids received were $8,593 from River Bend Business Products for a Canon and $8,655 from Xerox Corp.

Prescher/Klatt motion carried to adopt Resolution 01-CB-32 to enter into an agreement with the State of Minnesota, Department of Transportation, to provide public transportation service in Faribault County. Commissioners Klatt, Prescher, and Warmka voted yes. Commissioner Meyer voted no.

R E S O L U T I O N

BE IT RESOLVED, that Faribault County enter into an agreement with the State of Minnesota, Department of Transportation, to provide public transportation service in Faribault County.

BE IT FURTHER RESOLVED, that Faribault County agrees to provide 35 percent of the total operating cost from local funds and 20 percent of total capital costs.

BE IT FURTHER RESOLVED, that Faribault County authorized the County Board Chairman and the Public Works Director to execute the aforementioned agreement and any amendments thereto.

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Meyer/Klatt motion carried unanimously to hire Institute for Environmental Assessment to provide an asbestos and lead paint study on forfeited property in Wells and Walters.

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Meyer/Prescher motion carried unanimously enter into the South Central Drug Task Force joint powers agreement for the next fiscal grant period of 2002.

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Prescher/Klatt motion carried unanimously to approve request from R. Bolster to attend annual United Council of Welfare Fraud Sept. 9-13 at Raleigh, NC; B. Schultz to attend veteran service officer conference Sept. 9-12 at Nisswa; L. Eastman to attend veterans service office assistant conference Sept. 24-26 at St. Cloud; R. Gaines to attend criminal justice data communications network conf. Sept. 11-13 at St. Cloud.

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Commissioner Prescher discussed the Association of Minnesota Counties policy meetings in September.

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Myron Knutson of Evenson & Dodge met on refunding issues. Lowest bidder was Cronin & Co. Inc. of Minneapolis with a true interest rate of 6.3057%.

Meyer/Klatt motion carried unanimously to adopt Resolution 01-CB-33 authorizing issuance, awarding the sale, prescribing the form and details and providing for the payment of $285,000 general obligation taxable refunding waste disposal bonds, Series 2001. Commissioners Klatt, Meyer, Prescher, and Warmka voted yes.

RESOLUTION AUTHORIZING ISSUANCE, AWARDING THE SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $285,000 GENERAL OBLIGATION TAXABLE REFUNDING WASTE DISPOSAL BONDS, SERIES 2001

BE IT RESOLVED by the Board of County Commissioners (the Board) of Faribault County, Minnesota (the County), as follows:

SECTION 1. AUTHORIZATION AND SALE.

1.01. Authorization. The Board of County Commissioners hereby determines it is in the best interest of the County to authorize the issuance and sale of $285,000 General Obligation Taxable Refunding Waste Disposal Bonds, Series 2001 of the County (the Bonds), the proceeds of which would be used, together with any additional funds of the County which might be required, to refund (i) on December 1, 2001, the 2002 through 2012 maturities, aggregating $275,000, of the County’s outstanding Taxable General Obligation Waste Disposal Bonds, Series 1997, dated May 1, 1997 (the Refunded Bonds). The proceeds of the Refunded Bonds were used to finance the costs of a public loan program (the Program) to assist property owners in the County in the design, installation, repair and replacement of individual sewage treatment systems and to finance the sealing and replacement of wells on privately owned property, all pursuant to Minnesota Statutes, Section 115.57

1.02. Sale. The County has retained Evensen Dodge, Inc., as independent financial advisor in connection with the sale of the Bonds. Pursuant to Minnesota Statutes, Section 475.60, subdivision 2, paragraph (9), the requirements as to public sale do not apply to the issuance of the Bonds. Pursuant to the Official Statement, sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. The bids have been opened and publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. The most favorable bid received is that of Cronin & Co., Inc., in Minneapolis, Minnesota and associates (the Purchaser), to purchase the Bonds at a price of $282,150 plus accrued interest to the date of issuance and delivery.

1.03. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the Chairperson and County Auditor are hereby authorized and directed on behalf of the County to execute a contract for the sale of the Bonds with the Purchaser. The good faith deposit of the Purchaser shall be retained and deposited by the County until the Bonds have been delivered, and shall be deducted from the purchase price paid at settlement.

1.04. Supplemental Resolution for Term Bonds. Should the Purchaser determine that any Bonds be issued in the form of term bonds, this Board shall, by a separate and supplemental resolution, set forth further terms and provisions as necessary to provide for the issuance of the term bonds. Should the Purchaser determine that the Bonds be issued only in the form of serial bonds, no further resolution of the Board shall be required.

SECTION 2. BOND TERMS, REGISTRATION; EXECUTION AND DELIVERY.

2.01. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for the Board to establish the form and terms of the Bonds, to provide security therefore and to issue the Bonds forthwith.

2.02. Maturities; Interest Rates; Denominations; and Payment. The Bonds shall be dated, as originally issued, as of September 1, 2001, shall be in the denomination of $5,000 each, or any integral multiple thereof, shall mature on December1 in the years and amounts set forth below, and shall bear interest from date of issue until paid or duly called for redemption at the respective annual rates set forth opposite such years and amounts, as follows:

YearAmountRateYearAmountRate

2002 $ 15,0005.252008 $25,000 6.20

2003 25,000 5.252009 30,000 6.20

2004 25,000 5.252010 30,000 6.40

2005 20,000 5.752011 35,000 6.40

2006 20,000 5.752012 35,000 6.40

2007 25,000 5.75

The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof shall be payable by check or draft issued by the Registrar described herein; provided that, so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository.

2.03. Interest Payment Dates. Upon initial delivery of the Bonds pursuant to Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable on June 1 and December1 in each year, commencing December 1, 2002, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. Interest shall be computed on the basis of a 360 day year composed of twelve 30 day months.

2.04. Redemption. Bonds maturing in 2010 and later years shall be subject to redemption and prepayment at the option of the County, in whole or in part, in inverse order of maturity dates and by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000 as to Bonds maturing on the same date, on December 1, 2009, and on any interest payment date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. Prior to the date set for redemption of any Bond prior to its stated maturity date, the County Auditor shall cause notice of the call for redemption thereof to be published as required by law and, at least 30 days prior to the designated redemption date, shall cause notice of the call to be mailed by first class mail to the registered owners of any Bonds to be redeemed at their addresses as they appear on the bond register described in Section 2.06 hereof; provided that notice shall be given to any securities depository in accordance with its operational arrangements.

2.05. Appointment of Initial Registrar. The County hereby appoints U.S. Bank Trust National Association, in St. Paul, Minnesota as the initial bond registrar, transfer agent and paying agent (the Registrar). The Chairperson and the County Auditor are authorized to execute and deliver, on behalf of the County, a contract with the Registrar. Upon merger or consolidation of the 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 the Registrar for the services performed. The County reserves the right to remove the Registrar upon thirty days’ notice and upon the appointment of a successor Registrar, in which event 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.

2.06. Registration. The effect of registration and the rights and duties of the County and the Registrar with respect thereto shall be as follows:

(a) Register. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged.

(b) Transfer of Bonds. Upon surrender to the Registrar for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like series, aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of the transfer of any Bond or portion thereof selected or called for redemption.

(c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like series, aggregate principal amount and maturity, as requested by the registered owner or the owner’s attorney duly authorized in writing.

(d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the County.

(e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized.

(f) Persons Deemed Owners. The County and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner’s order shall be valid and effectual to satisfy and discharge the liability of the County upon such Bond to the extent of the sum or sums so paid.

(g) Taxes, Fees and Charges. For every transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange.

(h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like series, amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the County and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the County. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment.

(i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, subdivision 1, as amended.

(j) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds shall be the valid obligations of the County, evidencing the same debt, and entitled to the same benefits under this Resolution as the Bonds surrendered upon such transfer or exchange.

2.07. Preparation and Delivery. The Bonds shall be prepared under the direction of the County Auditor and shall be executed on behalf of the County by the signatures of the Chairperson of the County Board and the County Auditor; provided that said signatures may be printed, engraved, or lithographed facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have been so executed and authenticated, they shall be delivered by the County Auditor to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser shall not be obligated to see to the application of the purchase price.

2.08. Securities Depository. (a) For purposes of this section the following terms shall have the following meanings: