Minutes 7-22-03

BROOKINGS COUNTY COMMISSION MEETING
Tuesday, July 22, 2003

The Brookings County Board of County Commissioners met in regular session on Tuesday, July 22, 2003, with the following members present: Emil Klavetter, Deanna Santema, Donald Larson, Dennis Falken, and Mary Negstad. Also present: Stephanie Vogel, Kelly Bakken, Ted Eggebraaten, Brad Wermers, Darrell Hartmann, Michael Williams, Dan Hanson, Pat Duggan, Keith Bruinsma, Todd Meierhenry, Patrick Glover, Keith Eichacker, Lionel Torgrude, Joyce Dragseth, Janet Willmott, Stacy Steffensen, Robert Hill, Wm. Mark Kratochvil, Patty Solsaa, Nancy Price, Mark Salter, Clyde Calhoon, Larry Jensen, Ted Eggebraaten, Ida Slocum, Vicki Hanna, Martin Stanwick, Todd Struwe, Gary Heldt, Mel Kloster, Rose Stee, and Douglas Emerson via telephone..

Chairperson Emil Klavetter called the meeting to order.

CONSENT AGENDA
Chairperson Emil Klavetter declared the Consent Agenda approved with no objection from the board. The Consent Agenda consisted of the minutes from the July 8th, 2003 Commission Meeting, the Welfare Matters, and the Travel/Education Requests. Welfare Matters: Case # 03-084 for transport was approved; Case # 03-085 for Cobra payments was approved; Case # 03-086 for utilities was approved; Case # 03-087 for hospital was denied; Case # 03-041ABC for utilities was approved; Case # 03-077 for hospital was denied; Case 03-082 for utilities was approved; Case # 03-083R for release of payment was denied; Case # 03-089 for hospital was denied; Case # 03-090 for rent was denied. Travel/Education Requests: Denise Brown to go to Pierre, SD on July 23, 2003 to attend the NCIC2000 Image File Training. Kurt Schmidt, Cyndi Ault, and Joyce Dragseth to go to Oacoma, SD on August 18-19, 2003 to attend the SD GIS Training. Donna Bain, Nikki Chapman, Alan Gray, and Zack Linton to go to Huron, SD on July 14–18, 2003 to attend Correctional Officer Training and Certification Course.

APPROVAL OF AGENDA
Motion by Falken, seconded by Negstad, to approve the agenda for the July 22, 2003 as amended. Role Call Vote: Falken “Aye,” Larson “Aye,” Negstad “Aye,” Santema “Aye,” Klavetter “Aye.” Motion passes.

APPROVAL OF CLAIMS
Motion by Santema, seconded by Negstad, to approve the following claims. Role Call Vote: Larson “Aye,” Negstad “Aye,” Santema “Aye,” Falken “Aye,” Klavetter “Aye.” Motion passes. A&B Service, carburetor parts/labor $103.29; Ag-First Farmers Coop, execution $50.00; Amoco Oil, gas $23.23; Norma Anderson, 4-H judge/mileage $61.02; Anderson Oil, diesel fuel $583.00; Arnie Appelt, 4-H judge $50.00; Jennifer Appelt, 4-H judge/mileage $84.80; AT&T, telephone $111.05; Banner Associates, engineering $21,762.91; Eugene Beckman & Sons, parts $53.15; Boyer Ford Truck, parts $72.14; Bowes Construction, asphalt $20,305.60; Bkgs Auto Mall, connector $9.32; Bkgs City, utilities $1,806.58; Bkgs Clerk of Courts, restitution $1,402.00; Bkgs Co Treasurer, delinquent taxes $1,190.59; Bkgs Co Zoning, supplies/postage $24.08; Bkgs Register, publications $29.09; Bkgs Domestic Shelter, payment $13,000.00; Bkgs Hospital, ambulance/blood tests $4,533.55; Brown & Saenger, voter cards $90.35; Denise Brown, meals $18.00; Buhl’s Cleaners, rugs/rental $58.70; Butler Machinery, labor $67.50; Calhoon & Kratochvil, stamps/notary bond $195.00; Gregg Carlson, 4-H judge $50.00; Cellular One, cell phone $39.99; Central Business Supply, maintenance/office supplies/chair $1,105.14; Central Station Security, monitoring $155.00; Chemco, gloves/detergent $294.82; Computer Doctor, computer support $87.46; Cook’s Office Products, maintenance $18.68; Cook’s Recycling, commercial service $316.00; Courtesy Plumbing, faucet keys $10.05; Credit Bureau of Sioux Falls, skip tracing $27.00; Dakota Abstract, rent/utilities $1,641.67; Dakota Sport, shirts/caps $235.80; Dale’s Alignment, parts/labor $931.87; Dave’s Mhome Service, execution $473.08; DeBeer Small Engine, gas tank $21.39; Duane’s Animal Control, animal control $122.32; Andy Dupraz, 4-H judge $275.00; DWare, registration $60.00; East Dakota Water, monthly water conserv $141.97; Ecolab Pest Elimination, fumigation $46.00; Elite Business System, copier maintenance $56.00; Elkton Farmer’s Coop, diesel fuel/water $6,975.00; Denny Evenson, 4-H judge/mileage $234.10; Dennis Falken, meals/mileage $445.00; Farmer’s Coop, chemical $1,034.00; First District Assoc, maintenance contract $3,520.00; First Nat’l Bank Mastercard, gas $64.86; Robert Fite, CAA $205.90; Fixit Shop, keys/lock $47.00; Foerster Wholesale, janitorial supplies/paper $578.30; Allen Frerichs, 4-H judge $50.00; G&K Services, laundry service $191.23; Gempler’s Inc, sailbox net $121.90; Graham Tire, tires/labor $412.60; Great Plains Physiological Service, psychological evaluation $720.00; Dick Halstead, meeting $25.00; Harold’s Printing, building permits $90.85; Harold’s Photo Centers, photo finishing $3.99; Patricia Hartsel, transcripts $425.20; Heiman Fire Equipment, nozzle holder $61.66; Hendricks Pioneer, publications $4.59; Tim Hogan, CAA $375.06; Homestead Do-It Center, grid marker $13.18; Jean Hommel, 4-H judge/mileage $184.80; Justin Hyde, CAA $220.10; Hy-Vee Food Store, inmate meals $9,388.69; Index, office supplies $31.42; Insty-Prints, lamination $25.90; Intoximeters, repair $103.00; Gene Jaycox, 4-H judge/mileage $76.10; Emil Klavetter, meals/mileage $441.00; Darrel Kleinjan, meeting/mileage $36.02; Duane Knutson, meeting/mileage $27.61; Kohl’s-Weelborg Ford, 1996 freightliner $11,673.00; L&L Parts, parts/filters $177.91; Lewis & Clark Mental, MI hearings $250.00; Linweld, welding supplies $86.45; Douglas Lukonen, shop supplies $18.85; M E McCann, CAA $791.85; Donald McCarty, CAA $385.75; MCI, telephone $5.44; M&T, bulbs $32.00; Bob Mans, meeting/mileage $29.64; Martin’s Inc, oil/fuel filters $316.50; Midwest Glass, supplies/mirrors $112.98, Amber Misar, 4-H judge/mileage $73.20; Mobile Electronic Service, camera repair $243.04; Moriarty Rentals, rent $235.00; Darrel Nelson, meeting/mileage $30.51; Nielsen’s, starter $275.60; Nortek Computers, software/service $432.48; Northwestern Public Service, utilities $192.32; Ben Olson, 4-H judge/mileage $109.74; Mike Olson, meeting/mileage $37.76; Olson & Johnson International, motor $45.24; PMC, web hosting $2,100.00; Pennington Co Jail, transport $91.95; Pioneer Water Inc, softener salt $58.00; Prairie Graphics, T-shirts $106.00; Qwest, database $301.15; RFD News, publications $738.22; Rainbow Car Wash, car washes $21.98; Ramdell’s Fertilizer, LP gas $190.00; Eric Rasmussen, CAA $128.65; Reliance Telephone, phone cards $800.00; Rick Ribstein, CAA $2,344.60; Robert Rochel, meeting/mileage $34.57; Running’s Big R, supplies $186.63; Layne Saathoff, meeting/mileage $38.34; Sam’s Club, candy/aspirin $49.12; SD Dept of Labor, unemployment insurance $552.00; Service Electric, parts/labor $497.37; Shepardson’s True Value, tank sprayer $37.99; Sioux Valley Southwestern, utilities $138.95, Sirchie, lens adapter $70.97; Steve Smith, meeting/mileage 39.50; Software Services, computer assistance $948.75; Sprint, telephone $35.41; Staff Search, temp help $925.92; Sturdevant’s Auto, parts/supplies $90.68; Swiftel Center, upkeep $2,500.00; Thrifty White, medicine $517.76; Turning Point, foster care $3,655.00; VandenBerg Law, CAA $337.25; Varian, drug test kits $901.73; Verizon, telephone $144.61; Barry Vlasman, CAA $727.39; Wagner Real Estate, inspection fees $1,000.00; West Group, law books $755.00; City of White, water/utilities $63.40; Terry Weiczorek, CAA $1,076.68; Chad Wosje, meeting/mileage $39.50; Xerox, copier maintenance $340.17; Yankton Co Sheriff, service fees $16.50; Troy Zoellner, 4-H judge/mileage 89.15; Lake Poinsett Sewer, qrtrly payment $855.67; Lake Poinsett Water, qrtrly payment $1,711.60; Bkgs-Hamlin Sioux Water, qrtrly payment $5,522.69; Upper Deer, qrtrly payment $364.09.

COMMISSION REPORTS
Commissioner Falken reported on the 4-H BBQ and the NACO Convention. Commissioner Larson reported on the 4-H BBQ and the NACO Convention. Commissioner Negstad reported on a meeting with the Highway Department and BATA, the 4-H BBQ and the NACO Convention. Commissioner Santema reported on a Budget meeting with the Highway Department, the Insurance Refund Meeting, the Mass Destruction Meeting, the VIP Jail Overnight, the County, City, School Joint Meeting, the East Central Mental Health Meeting, the Weed Board Meeting, the Capital Card Ground Breaking, the 4-H BBQ and the NACO Convention. Commissioner Klavetter reported on the BEDC Meeting, the Capitol Card Ground Breaking, the Brookings Township Meeting, and the NACO Convention.

OTHER MATTERS
Deputy Auditor, Kelly Bakken presented the board with the Auditors Report. Bakken distributed the Brookings County Budget as of June 2003.

Be it noted, the Highway transfers for the month of June 2003, $3,772.46 was transferred for expenditures to increase the Highway budget due to work performed and supplies furnished for various non-highway departments.

Be it noted, Register of Deeds statement of fees was filed in the County Auditor’s Office collected for the month of June 2003 in the amount of $25,626.00.

Bakken submitted the following quotes for the Brookings County Highway Department for #2 Premium Diesel Fuel: Cenex, Elkton $.926; Martin Oil, Brookings $.934. Cenex, Elkton was awarded the quote at $.926. Be it noted, Ag First, Volga did not submit a quote.

Commission Assistant/Personnel Director, Stephanie Vogel presented the board with the Commission Assistant/Personnel Director Report. Vogel updated the board on Legislative matters, the SDACC Convention, the Public Nuisance Resolution, and other departmental matters.

Highway Superintendent, Ted Eggebraaten and Brad Wermers with Banner Associates, Inc. met with the board to discuss the County Road 23 Project and Highway matters.

Eggebraaten distributed the Abstract of Bids for the following Structure and approach Grading. Motion by Larson, seconded by Santema, to approve and award the project to Dakota Contracting, of Sioux Falls, SD. The low bidder of five (5) with a proposal of $146,656.56. The project is described as Item 3 of the July 15, 2003 Letting, BRO 8006(34) PCEMS 5736 Brookings County Structure and Approach Grading. Role Call Vote: Negstad “Aye,” Santema “Aye,” Falken “Aye,” Larson, “Aye,” Klavetter “Aye.” Motion passes.

Dan Hanson, with the City of Brookings met with the board to discuss Resolution # 03-28. Motion by Falken, seconded by Santema, to approve and authorize the chair to sign Resolution # 03-28. A Resolution Approving Annexation Of Territory By The City Of Brookings. Role Call Vote: Santema “Aye,” Falken “Aye,” Larson, “Aye,” Negstad “Aye,” Klavetter “Aye.” Motion passes.

RESOLUTION #03-28

A RESOLUTION APPROVING ANNEXATION
OF TERRITORY BY THE CITY OF BROOKINGS

WHEREAS, THE City of Brookings desires to annex the following described property, to wit:

Northwest Quarter (1/4) of Section 6-T109N-R49W, excluding the platted areas therof,

WHEREAS, pursuant to SDCL 9-4-5, such annexation is subject to review by the Board of County Commissioners.

THEREFORE, BE IT RESOLVED by the Brookings County Board of County Commissioners, that the annexation of the above described territory by the City of Brookings be and the same is hereby approved.

Dated this 22nd day of July, 2003.
________________________
Emil Klavetter, Chairperson
Brookings County Commission
ATTEST:
___________________________________
Janet Willmott, Brookings County Auditor

Fire Chief, Darrell Hartmann and City of Brookings Manager, Michael Williams met with the board to discuss a funding request for a Heavy Rescue Truck.

Court Administrator, Pat Duggan met with the board to discuss matters with the Brookings County Law Library. Motion by Negstad, seconded by Santema, to approve the purchase of a printer/copier for the Brookings County Law Library. Be it noted, the printer/copier will be paid through the Law Library fund. Role Call Vote: Falken “Aye,” Larson, “Aye,” Negstad “Aye,” Santema “Aye,” Klavetter “Aye.” Motion passes.

Veterans/Welfare Director, Lionel Torgrude met with the board to discuss Welfare Matters. Motion by Larson, seconded by Falken, to approve the Compromise/Settlement on County Lien for Case # 03-083R. Role Call Vote: Larson, “Nye,” Negstad “Nye,” Santema “Nye,” Falken “Nye,” Klavetter “Nye.” Motion failed.

Keith Bruinsma, with VeraSun Energy Corporation and Attorney, Todd Meierhenry met with the board to discuss Resolution # 03-29. Motion by Larson, seconded by Santema, to approve and authorize the chair to sign Resolution # 03-29. A RESOLUTION GIVING APPROVAL TO VERASUN ENERGY CORPORATIONPROJECT, GIVING APPROVAL TO THE ISSUANCE OF TAX INCREMENTAL REVENUE BONDS TO FINANCE THE PROJECT AND AUTHORIZING THE SALE OF SAID TAX INCREMENTAL REVENUE BONDS AND THE TERMS THEREOF. Role Call Vote: Negstad “Aye,” Santema “Aye,” Falken “Aye,” Larson, “Aye,” Klavetter “Aye.” Motion passes.

RESOLUTION NO 03-29

RESOLUTION GIVING APPROVAL TO VERASUN ENERGY CORPORATION
PROJECT, GIVING APPROVAL TO THE ISSUANCE OF TAX INCREMENTAL REVENUE BONDS TO FINANCE THE PROJECT AND AUTHORIZING THE SALE OF SAID TAX INCREMENTAL REVENUE BONDS AND THE TERMS THEREOF.

NOW, THEREFORE, BE IT RESOLVED AND ORDAINED by the County Commission of Brookings County as follows:

SECTION 1. AUTHORITY, FINDINGS, AUTHORIZATION.

1.01 Authority. The County is authorized to issue its Tax Incremental Revenue Bonds, Series 2003 to finance project costs pursuant to Section 11-9-33 of the South Dakota Codified Laws. Pursuant to Chapter 11-9 of the South Dakota Codified Laws (the "Act"), the County proposes to issue tax incremental revenue bonds (as herein authorized, the “Tax Incremental Revenue Bonds” or the "Bonds") to finance a portion of the Project costs. The County is authorized by the Tax Incremental Act to pledge a special fund into which the County will deposit the tax increment (as defined by the Act).
1.02 Findings. The County Commission hereby finds and determines as follows:
(a) It is necessary to provide incentives for the development of certain real property in order to have a dry-mill ethanol plant locate in the County;
(b) The County intends to provide a grant for construction of public improvements and provide incentives to Company in accordance with the plan on file with the County Auditor and open to public inspection (the "Project");
(c) The Tax Incremental Revenue Bonds authorized hereby are being issued to pay costs of Project, which have not been incurred or paid as of the date hereof and/or which the County has heretofore declared its intention to finance with bond proceeds and for which the County has no other available means or source of financing. The cost of the Project will not exceed $2,500,000, including capitalized interest;
(d) It is in the best interests of the County to authorize the borrowing of funds to pay a portion of the costs of the Project by authorizing and issuing the Bonds, consistent with the terms approved hereby for an aggregate sum not in excess of the amount of $2,500,000; and
(e) That the Tax Incremental Revenue Bonds are payable only solely out of the special fund created herein and that it does not constitute a general indebtedness of the county or a charge against its general taxing power.
1.03 Authorization to issue the Bonds. It is hereby determined to be necessary and in the best interests of the County and its inhabitants that this County Commission authorize, issue and sell the Bonds (the “Bonds”) in order to finance a portion of the cost of the Project. The Chairman and County Auditor are authorized to negotiate the sale and terms of the Bonds subject to the limitations of the law and this resolution.   The Bonds may be issued by the County without an election pursuant to SDCL §11-9-34.
SECTION 2. SALE, BOND PURCHASE AGREEMENT AND OFFICIAL STATEMENT.
2.01 Sale. The Bonds authorized by this Resolution shall be issued in an aggregate principal amount not exceeding $2,500,000 and shall be privately placed, at a purchase price of not less than 100 %, plus accrued interest. The Bonds will bear interest at a rate or rates per annum and will mature over a period set forth in the bond purchase agreement or similar document.   The County intends to sell the Bonds to a local or regional financial institution (the "Purchaser").
2.02 Bond Purchase Agreement. The execution of a bond purchase agreement or similar document setting forth the final terms of the Bonds is hereby approved and authorized. The execution of said document by the Chairman and County Auditor shall be conclusive evidence of such agreement and shall be binding upon the County.
SECTION 3. TERMS OF BONDS.
3.01 Date, Amount, Maturities and Interest Rates.   The Bonds shall be dated in calendar year 2003. The principal amount of the Bonds shall not exceed the lesser of $2,500,000 or any statutory or constitutional debt limitation. The term of the Bonds shall not exceed 20 years. The weighted average interest rate on the Bonds shall not exceed 6.15 %.
3.02 Form of Bonds. The Bonds shall be prepared in substantially the form on file with the County Auditor and open to public inspection.
3.03 Execution. The Bonds shall be signed by the manual or facsimile signatures of the Chairman and County Auditor of the County and countersigned by the manual or facsimile signature of an attorney resident in the State of South Dakota and in case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery
3.04 Redemption. Terms of optional or mandatory redemption shall be set by negotiation with the purchaser of the Bonds.
(i) Appointment of Initial Registrar. The County hereby appoints the Auditor, as Bond registrar, transfer agent and paying agent (the "Registrar") for the Bonds.
3.05 Authentication and Delivery. 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 Registrar by the manual signature of its authorized representative. 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 prepared, executed and authenticated, the County Auditor shall deliver the same to the Purchaser thereof upon payment of the purchase price in accordance with the provisions of the Bond Purchase Agreement and the Purchaser shall not be obligated to see to the application of the purchase price. Upon delivery of the Bonds to the Purchaser, the County Auditor shall file with the Secretary of State, on the form provided by the Secretary of State, the information required by SDCL, Section 6-8B-19.
SECTION 4. SECURITY PROVISIONS; FUNDS AND ACCOUNTS AND OTHER COVENANTS AND DETERMINATIONS.
4.01 Pledge Tax Increments. Pursuant to the Act, the County shall receive Tax Increments. All Tax Increments shall be placed in the Tax Incremental Revenue Bond Fund. The Tax Increment is irrevocably pledged and appropriated to the payment of the Bonds.   For purposes of this Resolution, "Outstanding Bonds" shall mean these Bonds and any parity lien bonds herebefore or hereafter issued pursuant to this Resolution. The Tax Incremental Revenue Bond Fund shall be used and applied only in the manner and order hereinafter set forth. The holders of the Outstanding Bonds shall have a lien against the Tax Incremental Revenue Bond Fund for payment of the principal and interest and may either at law or in equity protect and enforce the lien.
4.02 Tax Incremental Revenue Bond Fund. The County Auditor is hereby authorized and directed to establish and shall maintain a special fund, the Tax Incremental Revenue Bond Fund, as a separate and special fund in the financial records of the County until all Bonds issued and made payable therefrom, and interest due thereon, have been duly paid or discharged. All collections of the Tax Increments shall be credited, as received, to the Tax Incremental Revenue Bond Fund. Within the Tax Incremental Revenue Bond Fund are various separate accounts to be maintained by the County.
(a) Construction Account. There is hereby created and established as an account of the Tax Incremental Revenue Bond Fund, a "Construction Account". There shall be credited to the Construction Account the proceeds from the sale of the Bonds remaining after payment of the expenses of issuing the Bonds. All moneys credited to the Construction Account shall be applied solely to the payment of the costs of the Project or reimbursement therefore. For the purposes of this Resolution, "costs of the Project" shall include costs of acquiring, construction, and installing the Project including cost of capitalized interest, labor, services, materials and supplies, financial, architectural, engineering, legal, accounting and other professional expenses relating to the Project, the costs of acquisition or properties, rights, easements, or other interest in properties, insurance premiums, and the costs of publishing, posting or mailing notices in connection with the Project. All sums derived from the investment of moneys in the Construction Account shall remain in and become part of such account. Upon completion of the Project and when all costs of the Project have been paid, any balance remaining in the Construction Account shall be credited to the Principal and Interest Account hereinafter established.
(b) Principal and interest Account. There is hereby created and established as an account of the Tax Incremental Revenue Bond Fund, a "Principal and Interest Account." Immediately upon delivery of the Bonds, there shall be credited to the Principal and Interest Account the amount of any accrued interest received from the Purchaser. Periodically, as needed there shall be withdrawn from the Tax Incremental Revenue Bond Fund and credited to the Principal and Interest Account an amount which will equal at least the next principal and interest payment. In all events there shall be credited to the Principal and Interest Account amounts sufficient to pay the principal of and interest on the Outstanding Bonds as the same become due.
(c) Reserve Account. From the proceeds of the Bonds, or from moneys on hand from the County, there shall be credited to the Reserve Account, and thereafter maintained, a balance in the Reserve Account equal the lesser of (i) 10% of the proceeds of, or (ii) the maximum debt service due in any future calendar year on, the bonds. Said balance shall be maintained by such additional credits to the Reserve Account as may be necessary. Moneys on hand in the Reserve Account shall be used only to pay maturing principal and interest when other moneys in the Revenue Bond Account are insufficient therefore. In the event of the issuance of Additional Bonds, the balance on hand in the Reserve Account shall be increased, on the date of issuance of such Additional Bonds, through the deposit of bond proceeds or Net Revenues or a combination thereof, to an amount equal to the lesser of (i) 10% of the proceeds of, or (ii) the maximum annual debt service due in any future calendar year (during the term of the outstanding bonds), on all bonds (including the Additional Bonds) payable from the Principal and Interest Account.
(d) Subordinate Lien Bonds. After making the above required payments, any remaining Tax Increment shall be used for the payment of the principal of and interest on any additional Tax Incremental Revenue Bonds having a lien which is subordinate to the lien of the Outstanding Bonds, and for a reserve fund as additional security for the payment of such subordinate lien bonds.
4.03 Additional Debt.
(a) No additional Bonds shall be issued, be made payable from the Tax Incremental Revenue Fund or Tax Increments which is prior to or superior to the lien of the Bonds authorized herein.
(b) Nothing in this Resolution shall be construed in such manner as to prevent the issuance by the County of additional bonds payable from the Tax Increment and constituting a lien upon the Tax Increment and the Tax Incremental Revenue Fund equal to or on a parity with the lien of the Bonds authorized herein (such additional bonds being referred to herein as "Additional Bonds"), provided (i) the County is current in the payment of principal and interest on the Outstanding Bonds and is current in the accumulations required for the Principal and Interest Account, (ii) the County is in compliance with the covenants herein contained, and (iii) the Tax Increment collected by the County will be sufficient to cover 1.50 times the maximum annual principal and interest requirements over the entire term on the Outstanding Bonds, and the proposed parity lien bonds.
(c) Nothing herein shall prevent the County from issuing Bonds payable from the Tax Increment or Tax Incremental Revenue Bond fund or having a lien thereon which is junior and subordinate to the lien of the Bonds authorized herein. The County may incur expenses in connection with the Tax Incremental District Number 1 which shall be reimbursed through the tax increment. Said obligations shall be junior and subordinate to the Bonds whether evidenced by an accounting notation or instrument of indebtedness.
4.04 Deposit and Investment of Funds. The County Auditor shall cause all moneys pertaining to the Fund to be deposited as received with one or more banks which are duly qualified public depositories under the provisions of Chapter 4-6A, South Dakota Codified Laws, in a deposit account or accounts, which shall be maintained separate and apart from all other accounts of the County, so long as any of the Bonds and the interest thereon shall remain unpaid. Any of such moneys not necessary for immediate use may be deposited with such depository banks in savings or time deposits. No moneys shall at any time be withdrawn from such deposit accounts except for the purposes of the Fund as authorized in this Resolution; except that moneys from time to time on hand in the Fund may at any time, in the discretion of this Commission, be invested in securities permitted by the provisions of Section 4-5-6, South Dakota Codified Laws, maturing and bearing interest at the times and in the amounts estimated to be required to provide cash when needed for the purposes of the respective accounts. Income received from the deposit or investment of moneys shall be credited to the account from whose moneys the deposit was made or the investment was purchased, and handled and accounted for in the same manner as other moneys in that account.
4.05 Pledge of State of South Dakota. Pursuant to SDCL 11-9-39.1, the State of South Dakota does pledge to and agree with the holders of any issued under 11-9 that the state will not alter the rights vested in the bond holders until such bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged.
4.06 Covenants of the County. The County hereby irrevocably covenants and agrees with each and every holder of the Bonds that so long as any of the Bonds remain outstanding:
(a) It will not amend or repeal the Tax Increment or the allocation of revenues thereof to the Tax Incremental Revenue Bond Fund, or in any way that would adversely affect the amount of Tax Incremental Revenues which would otherwise be collected and deposited to the Tax Incremental Revenue Bond Fund.
(b) It will administer, enforce, and collect, or cause to be administered, enforced or collected, the real property taxes and shall take such necessary action to collect delinquent payments in accordance with law.
(c) It will keep or cause to be kept such books and records showing the proceeds of the Tax Incremental, in which complete entries shall be made in accordance with standard principles of accounting, and any owner of any Bond shall have the right at all reasonable times to inspect the records and accounts relating to the collection and receipts of such Tax Incremental.
(d) In the event the real property taxes of the County is replaced and superseded by the state collected-locally shared tax or taxes, or is replaced and superseded in some other manner form other source or sources, the revenues derived by the County from the replacement source or sources, as received by the County shall be appropriated in the same manner as if the County had levied and imposed a real property tax. From and after the date of a replacement, the Outstanding Bonds shall have a first and prior lien, but not necessarily an exclusive lien, upon such replacement revenues to the extent therein specified.
4.07 Defeasance. When all the Bonds issued have been discharged as provided in this section, all pledges, covenants, and other rights granted by this resolution to the registered owners of the Bonds shall cease. The County may discharge its obligations with respect to any Bonds which are due on any date by providing to the Paying Agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by providing to the Paying Agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The County may also discharge its liability with reference to all Bonds which are called for redemption on any date in accordance with their terms by depositing funds with the Paying Agent on or before that date in accordance with their terms by depositing funds with the Paying Agent on or before that date, in an amount equal to the principal, interest, and premium, if any, which are then due thereon, provided that notice of such redemption has been duly given. The County may also at any time discharge this issue of Bonds in its entirety, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or United States government obligations which are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required to provide funds (without an reinvestment) sufficient to pay all principal, interest and premiums, if any, to become due on all Bonds on and before maturity, or, if a Bond has been duly called for redemption, on or before the designated redemption date.
4.08 Certification of Proceedings. The officers of the County are authorized and directed to prepare and furnish to the purchasers of the Bonds certified copies of all proceedings and records of the County relating to the authorization and issuance of the Bonds and such other affidavits and certificates as may reasonably be required to show the facts relating to the legality and marketability of the Bonds as such facts appear from the officer's books and records or are otherwise known to them. All such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the County as to the correctness of the facts recited therein and the action stated therein to have been taken.
SECTION 5. TAX MATTERS; CERTIFICATION OF PROCEEDINGS AND MISCELLANEOUS.
5.01 Tax Matters. The County covenants and agrees with the registered owners from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and applicable Treasury Regulations (the "Regulations"), and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under the Code and the Regulations.
(a) Private Activity Bonds. It is hereby determined that the Bonds are not and will not be "private activity bonds" as defined in Section 141(a) of the Code.
(b) Bank Qualification. The County reasonably anticipates that the amount of tax exempt obligations which will be issued by the County and all entities subordinate to, or treated as one issuer with, the County during calendar year 2003 will not exceed $10,000,000. The Bonds are hereby designated as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code. The County will not designate, or cause any subordinate entity or request any other governmental entity to designate on its behalf, more than $10,000,000 of its obligations as "qualified tax-exempt obligations" in calendar year 2003.
(c) Arbitrage. The Chairman and the County Auditor, being the officers of the County charged with the responsibility for issuing the Bonds pursuant to this Resolution are hereby authorized and directed to execute a certificate in accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b) of the Regulations, stating that on the basis of facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds, it is reasonably expected that the proceeds of the Bonds will be used in a manner that would not cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and the Regulations.
(d) Arbitrage Rebate Exemption. The Commission hereby represents that the Bonds qualify for the exception for small governmental units to the arbitrage rebate provisions contained in Section 148(f) of the Code. Specifically, the Commission represents:

(1) Substantially all (not less than 95%) of the proceeds of the Bonds (except for amounts to be applied to the payment of costs of issuance and amounts to be deposited in the Tax Incremental Revenue Bond Account pursuant to Section 4.02 will be used for local governmental activities of the County.

(2) The aggregate face amount of all "tax-exempt bonds" (including warrants, contracts, leases and other indebtedness, but excluding private activity bonds and current refunding bonds) issued by or on behalf of the Commission and all subordinate entities thereof during 2003 is reasonably expected not to exceed $10,000,000.

(e) If, notwithstanding the provisions of paragraph (a) of this Section, the arbitrage rebate provisions of Section 148(f) of the Code apply to the Bonds, the County hereby covenants and agrees to make the determinations, retain records and rebate to the United States the amounts at the times and in the manner required by said Section 148(f).
(f) Information Filing. The County shall file with the Secretary of the Treasury a statement concerning the Bonds containing the information required by Section 149(e) of the Code.
SECTION 6. INTERPRETATION, AUTHORIZATION OF OFFICERS AND RESOLUTION CONSTITUTES CONTRACT.
6.01 Interpretation. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution.
6.02 Authorization of Officers. The officers of the County and the County Auditor of Brookings County are authorized and directed to prepare and furnish to the purchasers of said Bonds, and to the attorneys passing on the legality of said Bond issue, copies of all proceedings relating to Bonds and other certificates and affidavits showing the facts affecting the legality thereof as shown by the books and records of the County under their custody and control or as otherwise known to them and such copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the County as to the facts therein recited.
6.03 The officers of the County are hereby authorized and directed to take all other action necessary or appropriate to effectuate the provisions of this Resolution, including without limiting the generality of the foregoing, the printing of the Bonds, and the execution of such certificates as may reasonably be required by the Placement Agent, including, without limitation, certification relating to the signing of the Bonds, the tenure and identity of the County's officials, the exemption of interest on the Bonds from federal income taxation, the receipt of the Bond purchase price and, if in accordance with the facts, the absence of litigation affecting the validity thereof.
6.04 Resolution Constitutes Contract. After the Bonds have been issued, this Resolution shall constitute a contract between the County and the holder or holders of the Bonds, and shall be and remain irrepealable and unalterable until the Bonds and the interest accruing thereon shall have been duly paid, satisfied and discharged.

6.05 Rules of Construction. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. The title or caption of each paragraph are for convenience purposes only and do not define scope or intent of paragraph.

ATTEST: ________________________________
Emil J. Klavatter
Chairman
_____________________________
Janet K. Willmott
County Auditor

Adopted: July 22, 2003
Approved: ______________, 2003
Published: ______________, 2003

The motion by Larson for adoption of the foregoing resolution was duly seconded by Commission Person Santema, and upon vote being taken thereof, the following voted YEA:
Klavetter, Santema, Falken, Larson, Negstad

and the following voted NAY:

Whereupon said resolution was declared duly passed and adopted.

_________________________________
Emil J. Klavetter
Chairman

ATTEST:
__________________________
Janet K. Willmott
County Auditor

STATE OF SOUTH DAKOTA )
SS
COUNTIES OF BROOKINGS )

I, the undersigned, being the duly qualified and acting County Auditor of the County of Brookings, South Dakota, do hereby certify that the attached and foregoing is a full, true and complete transcript of the Minutes of a meeting of the County Commission held on the 22nd day of July, 2003, insofar as the original meeting relates to proceedings for the Resolution Authorizing the Sale of Said Tax Incremental Revenue Bonds.

WITNESS my hand and official seal of this said County this 22nd, day of July 2003.

________________________________
Janet K. Willmott
County Auditor
County of Brookings, South Dakota

Auditor, Janet Willmott and Elections Officer, Stacy Steffensen met with the board to discuss the Brookings Township precinct voting location.

Commission Assistant/Personnel Director, Stephanie Vogel met with the board to discuss Resolution # 03-30. Motion by Negstad, seconded by Falken, to approve and authorize the chair to sign Resolution # 03-30. A Resolution declaring the need for legislation to authorize counties to tax the cost of abating a public nuisance. Role Call Vote: Santema “Aye,” Falken “Aye,” Larson, “Aye,” Negstad “Aye,” Klavetter “Aye.” Motion passes.

Resolution # 03-30

WHEREAS, SDCL 21-10-6 allows for the abatement of a public nuisance, and further allows municipalities to defray the cost of abating the public nuisance by taxing the cost thereof by special assessment against the real property in which the nuisance occurred;

WHEREAS, many South Dakota Counties, including Brookings County, have enacted public nuisance ordinances, but do not have authority to defray the cost of abating the public nuisance;

NOW THEREFORE BE IT RESOLVED that the Brookings County Board of Commissioners supports legislation to amend SDCL 21-10-6 to grant counties the authority to defray the cost of abating a public nuisance.

BE IT FURTHER RESOLVED, that the Brookings County Board of Commissioners requests that the South Dakota Association of County Commissioners seek legislation to amend SDCL Chapter 21-10-6 to grant counties the authority to defray the cost of abating a public nuisance.

Dated this 22nd day of July, 2003.
________________________
Emil Klavetter, Chairperson
Brookings County Commission
ATTEST:
___________________________________
Janet Willmott, County Auditor

Motion by Santema, seconded by Falken, to approve and authorize the chair to sign the Petition to the City of Brookings as the record owner of the 1921 building, for major amendment to a Planned Development District. Role Call Vote: Falken “Aye,” Larson “Aye,” Negstad “Aye,” Santema “Aye,” Klavetter “Aye.” Motion passes.

Zoning and Drainage Director, Robert Hill met with the board to discuss Resolution # 03-31. Motion by Larson, seconded by Falken, to approve and authorize the chair to sign Resolution # 03-31. Role Call Vote: Larson “Aye,” Negstad “Nye,” Santema “Aye,” Falken “Aye,” Klavetter “Aye.” Motion passes. Also present: Douglas Emerson with Land O’Lakes, Inc. via telephone.

RESOLUTION #03-31

WHEREAS, Land O’Lakes, Inc. desires to establish land application sites to accompany an established salt whey storage lagoon for the purpose of solid waste management; and

WHEREAS, the City of Volga has approved siting the lagoon and proposed land application sites; and

WHEREAS, Land O’Lakes, Inc. will file a solid waste application with the South Dakota department of Environment and Natural Resources (DENR); and

WHEREAS, DENR will review that application to determine that the lagoon and proposed land application sites can be operated within the South Dakota laws and regulations; and

WHEREAS, DENR will recommend the approval of the permit with conditions adequate to safeguard the environment; and

WHEREAS, the Board of Minerals and Environment will review, modify, approve, or deny the permit if the tentative recommendations and/or conditions of the permit are contested by any interested party; and

WHEREAS, the County Commission of Brookings County is required by South Dakota law SDCL 34A-6-103 to approve of a solid waste facility prior to the issuance of a solid waste permit;

IT IS THERFORE RESOLVED that the County Commission of Brookings County hereby approves construction and operation of the proposed facility to be operated under the terms of a solid waste permit to be issued by the Board of Minerals and Environment.

Approved this 22nd date of July, 2003 by the Brookings County Commission in regular session.

_______________________
Emil Klavetter, Chairperson

Attest:
______________________
Janet Willmott, Auditor

Patty Solssa and Nancy Price with the City of Aurora and Attorney, Mark Salter met with the board to discuss matters with the Railroad Crossing and Joint Jurisdiction.

Motion by Santema, seconded by Negstad, to go into executive session at 11:06am. Role Call Vote: Negstad “Aye,” Santema “Aye,” Falken “Aye,” Larson “Aye,” Klavetter “Aye.” Motion passes. Chair Klavetter declared executive session over at 12:10pm. Reason – Personnel/Contractual Matters. No action at this time.

COMMISSIONER’S OPEN DISCUSSION
Be it noted, the board discussed matters with House Bill 1281, Executive Session Requirements, and 2004 Budget Matters.

RECESS
Be it noted, the board recessed for lunch.

BUDGET HEARINGS
Clyde Calhoon, Lionel Torgrude, Larry Jensen, Ted Eggebraaten, Ida Slocum, Joyce Dragseth, Vicki Hanna, Martin Stanwick, Janet Willmott, Stephanie Vogel, and Kelly Bakken met with the board to discuss the 2004 Budget.

ADJOURNMENT
The Chair declared the meeting adjourned until 9:00am Wednesday, July 23, 2003.

It is the policy of Brookings County, South Dakota, not to discriminate against the Handicapped in Employment or the Provision of Service. The County of Brookings is responsive to requests for communication aids and the need to provide appropriate access, and will provide alternative formats and accessible locations consistent with the Americans With Disabilities Act.
____________________________________
Kelly Bakken
Deputy Auditor
Brookings County Auditor’s Office

BROOKINGS COUNTY COMMISSION MEETING
Wednesday, July 23, 2003

The Brookings County Board of County Commissioners met in special session on Wednesday, July 23, 2003, with the following members present: Emil Klavetter, Deanna Santema, Donald Larson, Dennis Falken, and Mary Negstad. Also present: Stephanie Vogel, Kelly Bakken, Janet Willmott, Robert Hill, Todd Struwe, Gary Heldt, Mel Kloster, and Rose Stee.

BUDGET HEARINGS
Robert Hill, Todd Struwe, Gary Heldt, Mel Kloster, Rose Stee, Janet Willmott, Stephanie Vogel, and Kelly Bakken met with the board to discuss the 2004 Budget.

ADJOURNMENT
The Chair declared the meeting adjourned until 9:00am Thursday, July 24, 2003.

____________________________________
Kelly Bakken
Deputy Auditor
Brookings County Auditor’s Office

BROOKINGS COUNTY COMMISSION MEETING
Thursday, July 24, 2003

The Brookings County Board of County Commissioners met in special session on Thursday, July 24, 2003, with the following members present: Emil Klavetter, Deanna Santema, Donald Larson, Dennis Falken, and Mary Negstad. Also present: Stephanie Vogel, Kelly Bakken, Janet Willmott.

BUDGET HEARINGS
Janet Willmott, Stephanie Vogel, and Kelly Bakken met with the board to discuss the 2004 Budget.

EXECUTIVE SESSION
Motion by Falken, seconded by Larson, to go into executive session at 11:54am. Role Call Vote: Falken “Aye,” Larson “Aye,” Negstad “Aye,” Santema “Aye,” Klavetter “Aye.” Motion passes. Chair Klavetter declared executive session over at 12:08pm. Reason – Personnel Matters. No action at this time.

ADJOURNMENT
The Chair declared the meeting adjourned until 8:30am Tuesday, July 29, 2003.

____________________________________
Kelly Bakken
Deputy Auditor
Brookings County Auditor’s Office