BROOKINGS COUNTY COMMISSION MEETING
Tuesday, December 10, 2002

The Brookings County Board of County Commissioners met in regular session on Tuesday, December 10, 2002, with the following members present: Emil Klavetter, Don Larson, Barb Telkamp, Sara Kneip, and Deanna Santema.  Also present: Stephanie Vogel, Kelly Bakken, Donna Ramsay, Keith Bruinsma, Ted Eggebraaten, Marty Stanwick, and Cheryl Anderson.

Chairperson Emil Klavetter called the meeting to order.
 

APPROVAL OF AGENDA / MINUTES
Motion by Telkamp, seconded by Kneip, to approve the agenda for December 10, 2002 meeting as amended.  All voting “Aye.”  Motion by Larson, seconded by Santema, to approve the minutes for the December 3, 2002 meeting approved as mailed.  All voting “Aye.”

COMMISSION REPORTS
Commissioner Santema reported on the City, County, School Joint Lunch, Custodial Department Interviews, JDC Meeting, and the Presidents Breakfast.  Commissioner Telkamp reported on the Brookings Area Transit Meeting, City, County, School Joint Lunch, Presidents Breakfast, and updated the board on the JDC Meeting.  Commissioner Klavetter reported on a Meeting with Dick Smith on the 1921 Building, and the President Breakfast.

CLAIMS
Motion by Larson, seconded by Telkamp, to approve the following claims.   All voting “Aye.”  A&B Business, copier maintenance $515.79; Allied Oil & Supply, tires $2,173.84; Jeffrey Anderson, AFLAC refund $66.00; Martha Aragon, translation $50.00; Baete-Forseth, fan $59.11; Banner Associates, engineering fees $21,346.23; Boyer Ford Truck, parts $122.61; Bozied Oil, car washes $185.00; Brevik & Thurman, MI hearings $267.39; Bkgs City, animal control $92.68; Bkgs City, landfill $7.50; Bkgs City, utilities $12,806.38; Bkgs Clerk of Courts, confidential papers $421.00; Bkgs Co Treasurer, liability check $2,053.00; Bkgs Register, publications $710.40; Bkgs Hospital, blood tests/medical $4,467.35; Bkgs Inn, LEPC meeting $91.56; Brown & Saenger, tax notices $1,262.25; Butler Machinery, parts $1,927.18; Don Carlson, MI hearings $30.00; CarQuest Auto, parts $46.96; Cellular One, telephone $575.96; Central Business Supply, printer head/repair/paper $509.50; Central Supply Service, flags $48.50; Chemco Supply, supplies $35.99; Comfort Heating & Cooling, check thermostats $67.50; Computer Essentials, supplies $84.85; Cook’s Office Products, office supplies $307.86; Cooks Recycling, commercial service $315.00; Donna Dietrich, MI hearings $217.24; Doyle, Kennedy & Rohkahr, MI hearing $92.10; Victoria Duehr, CAA $1,293.30; D-Ware, computer support $625.00; ECMH/CD, qrtrly payment/FCIP payment $14,477.77; East Dakota Water, monthly water conserv $4,200.01; Einsphar Auto, car repair $198.71; Erviro Technologies, janitorial supplies $113.75; 5th Ave Alterations, apply patches $10.00; Foerster Wholesale Supply, office/janitorial supplies $655.70; Fox, Youngberg & Lewno, MI hearing $164.38; G&K Services, laundry service $192.76; Gateway Companies, computer $2,696.00; Goetz & Klimisch, MI hearing $121.95; Graham Tire, tires $155.06; Graybar Electric, bulbs $88.08; Hander Inc, HVAC system remodel $7,106.00; Harold’s Printing, letterhead $269.25; Patricia Hartsel, transcript $11.40; Gary Heldt, meeting/mileage/supplies $195.98; Homestead Do-It Center, caster/felt $56.65; Justin Hyde, CAA $310.50; Hy-Vee Food Store, food $81.34; Index, office supplies $17.84; ITC, database/telephone $714.08; J&H Excavating, remove bridge/install culvert $1,453.64; Janitor’s Closet, janitorial supplies $175.04; Johnson Controls, base contract/repair pump $27,369.00; Joan Kittelson, MI hearings $30.00; Emil Klavetter, meals/mileage $48.22; Mel Kloster, meals/mileage/registration $304.54; L&L Parts, parts $60.65; Richard Larson, meals/gas $14.84; LexisNexis Matthew Bender, law books $25.85; Linweld, supplies $21.00; Lyle’s Signs, signs $359.36; M E McCann, CAA $1,585.77; McLeod’s Print & Office, forms $259.19; MCI, telephone $251.76; M&T, medical supplies/fire equipment $520.17; Gary Madsen, tax refund $352.21; MARC, janitorial supplies $72.18; Mediacom, internet $55.95; Medical X-Ray Center, x-rays $198.50; Dennis Miller, meals $8.71; Motorola, radio equipment $23,925.00; Nat’l 4-H Council, flags $58.30; Sean O’Brien, CAA $820.60; Otis Elevator Co, maintenance $713.80; Pioneer Water Inc, softener salt $23.20; Brad Poss, tax refund $293.48; Quill, camera/cartridges $504.94; RFD News, publications $518.00; RTI, computer security/relocation $2,070.00; SD Dept of Revenue, admin fees/MV/blood tests/birth & death fees $166,791.94; Randy Ribstein, meals $9.57; Rick Ribstein, CAA $3,157.16; Monty Rothenberger, transport $27.03; Running’s Big R, sprayers/generator $3,761.93; David Rusten, mileage $58.29; SD Assoc Co Weed Board, pens $57.60; SD Dept of Health, flu shots $261.40; SDSU Animal Disease, rabies testing $37.00; SDSU Animal Science, IRM redbooks $120.00; SDSU Workstudy, workstudy $96.88; Sheperdson’s True Value, supplies $50.33; Sioux Valley Wireless, utilities $34.95; Software Services, computer support $1,300.00; Sprint, telephone $54.51; State of SD, network access fee $28.00; Rose Stee, meals/mileage/motel/parking $732.16; Sturdevant’s Auto, parts $96.87;  Laurie Tangen, meals/mileage/registration $113.69; Tee’s Plus, DARE supplies $268.88; Michael Thompson, CAA $1,008.37; Steve Tiegen, AFLAC refund $21.00; Turning Point, foster care $850.00; Vantek Communications, radios $1,665.00; Verizon, telephone $59.80; Barry Vlasman, CAA $458.31; Wagner Real Estate, inspection fees $800.00; Wal-Mart, supplies $109.48; City of White, utilities $64.13; Terry Weiczorek, CAA $2,074.18; Janet Willmott, meal $6.50; Xerox, maintenance $449.79; Yankton Co Sheriff, service fees $33.00; Young Door Service, service call $125.02; Juror/Witness Fees: Bertha Blankenfeld $50.58; Travis Bortnem $20.00; Jonathan Doop $20.00; Melinda Filholm $50.58; Donna Jurrens $50.58; Alice Kurtz $59.28; Robert Lees $51.16; John Muller $54.64; June Reed $66.82; James Shriver $57.54; Kristin Stensrud $65.08.

OTHER MATTERS
Motion by Larson, seconded by Telkamp, to approve the recommendations of the Brookings County Welfare Director for the following applications for County assistance.  All voting “Aye.”  Case # 02-142 for hospital was denied; Case # 02-146 for hospital was denied; Case # 02-100 for hospital was approved; Case # 02-070A-E for hospital was approved.

Motion by Telkamp, seconded by Santema to approve the following travel and education requests.  All voting “Aye.”  Deputy Sheriff, Steve Haro to go to Pierre, SD on December 9–10, 2002 to attend the meeting on the Department of Justice Grant for Brookings County.

Deputy Auditor, Kelly Bakken presented the board with the Auditors Report.

November 2002
 Total amount of deposits in banks…………………………………………………………………………. $8,678,579.47
 Total amount of actual cash: Currency………………….………………. 11,189.00
 Coins…………………………………………………………………………. 59.79
 Total amount of checks/drafts in Treasurer’s possession not exceeding 3 days………. 144,291.93
 Itemized list of all items, checks, and drafts in Treasurer’s possession over 3 days… 2,053.00
 Insufficient checks……………………………………………………………………........................…………… 625.08
 T O T A L .……………………………………………………………………………..…………………. $8,836,798.27

Motion by Telkamp, seconded by Kneip, to approve for recording purposes and authorize the chair to sign Resolution # 02-62.  The plat of Sublots 14, 15, 16, and 17 of Lot 1 of Dorn Addition in Government Lot 5 in Section 27-112-47, Brookings County, South Dakota.  All voting “Aye.”

Commission Assistant/Personnel Director, Stephanie Vogel presented the board with the Commission Assistant/Personnel Director Report.  Vogel updated the board on the letter on Emergency Management, and invitation from the Director of Equalization; and other Departmental Matters.

Commissioner Larson expressed concerns to the board on the letter received from the South Dakota Stockgrowers Association.

Highway Superintendent, Ted Eggebraaten met with the board to discuss Highway matters.  Eggebraaten updated the board on the County Road 23 project, the emergency bridge project, and the Brookings Area Transit garage.

Motion by Kneip, seconded by Santema, approving and authorizing the Chair to sign the Agreement for Shared Services and Materials for County and State Work.  The agreement is between Brookings County and the State of South Dakota; the agreement shall commence on January 1, 2003 and shall terminate on January 1, 2004.  All voting “Aye.”

Second Deputy Treasurer, Cheryl Anderson met with the board to discuss the Festival of Lights parade and open house.  Anderson requested $500.00 for the project for future years.  Be it noted, the board will consider the request, while reviewing the budgets during the next Commission meeting.

Motion by Telkamp, seconded by Kneip, approving and authorizing the Chair to sign the 2003 Juvenile Detention Per Diem Contract between Brookings County and Minnehaha County.  All voting “Aye.”

Keith Bruinsma of VeraSun Energy met with the board to present Resolution
# 02-63.  Motion by Larson, seconded by Kneip, to approve and authorize the Chair to sign Resolution # 02-63.  A Resolution Authorizing The Execution of a Memorandum Of Agreement By and Between Brookings County, South Dakota and VeraSun Ethanol Corporation Providing For The Issuance Of Revenue Bonds.  Role Call Vote:  Santema ~ “Aye:” Larson ~ “Aye;” Telkamp ~ “Nye;” Kneip “Aye;” Klavetter “Aye.”  Motion passes.  Be it noted, Commissioner Telkamp voted “Nye” due to the fact that VeraSun Energy has not delivered the document declaring the they are waving the Discretionary Formula.

Commissioner Larson introduced and caused to be read Resolution No. 02-63 entitled “RESOLUTION AUTHORIZING THE EXECUTION OF A MEMORANDUM OF AGREEMENT BY AND BETWEEN BROOKINGS COUNTY, SOUTH DAKOTA AND VERASUN ETHANOL CORPORATION PROVIDING FOR THE ISSUANCE OF REVENUE BONDS” and moved for its adoption; seconded by Commissioner Kneip.  After due consideration of said resolution by the Commissioners, the Chairman put the question on the motion and upon the roll being called the following named Commissioners voted:

Aye:  Santema, Larson, Kneip, Klavetter
Nay:  Telkamp
Whereupon, the Chairman declared said resolution duly adopted and signed his approval thereto.
* * *
Upon motion and vote the meeting adjourned.

Chairman

__________________________________
County Auditor

RESOLUTION NO. 02-63
RESOLUTION AUTHORIZING THE EXECUTION OF A MEMORANDUM OF AGREEMENT BY AND BETWEEN BROOKINGS COUNTY, SOUTH DAKOTA AND VERASUN ETHANOL CORPORATION PROVIDING FOR THE ISSUANCE OF REVENUE BONDS.

WHEREAS, Brookings County, South Dakota (the “Issuer”) is a political subdivision authorized and empowered by the provisions of Chapter 9, Title 54, of the South Dakota Codified Laws, as supplemented and amended (the “Act”), to issue revenue bonds to finance projects within the meaning of the Act, including sewage and solid waste disposal facilities; and
WHEREAS, VeraSun Ethanol Corporation (the “Company”) has requested assurances from the Issuer that the proceeds of the sale of one or more issues of revenue bonds of the Issuer pursuant to the Act in an aggregate amount sufficient to finance costs of sewage and/or solid waste disposal facilities (the “Project”) at the Ethanol Plant to be owned and operated by the Company and located in Brookings County, South Dakota, currently estimated not to exceed $25,000,000, will be made available to the Company; and
WHEREAS, the Issuer deems it necessary and advisable that it take such actions as may be required under the Act to authorize and issue one or more issues of its revenue bonds to finance costs of the Project, currently estimated not to exceed $25,000,000; and
WHEREAS, a form of agreement, designated as a “Memorandum of Agreement”, has been prepared under which the Issuer has stated its agreement to issue one or more issues of its revenue bonds to finance costs of the Project, currently estimated not to exceed $25,000,000, and the Company has stated its agreement to enter into a lease, agreement of sale or financing agreement, as may be permitted by the Act, with the Issuer with respect to the Project, under which the Company will be obligated to make basic rental or other payments sufficient to pay the principal of, and interest and redemption premium, if any, on, the bonds as and when the same shall become due and payable, such lease or agreement to contain such other provisions as may be required by the Act and such other provisions as shall be mutually acceptable to the Issuer and the Company; and
WHEREAS, this resolution shall constitute a declaration of official intent for the reimbursement of project costs within the meaning of §1.150-2 of the Federal Income Tax Regulations;
NOW, THEREFORE, Be It Resolved by the Board of County Commissioners of Brookings County, South Dakota, as follows:
Section 1. That in order to insure the acquisition and construction of the Project, with the resulting public benefits which will flow therefrom, it is deemed necessary and advisable that revenue bonds be issued pursuant to the Act in an amount sufficient to finance costs of the Project, currently estimated not to exceed $25,000,000, and that the Memorandum of Agreement hereinafter referred to be approved and executed for and on behalf of the Issuer.
Section 2. That the Memorandum of Agreement by and between the Company and the Issuer, substantially in the form set forth in Exhibit A attached hereto, be and the same is hereby approved and authorized.
Section 3. That the Chairman is hereby authorized and directed to execute, and the County Auditor is hereby authorized and directed to attest, the Memorandum of Agreement substantially in the form and with the contents set forth in Exhibit A attached hereto.
Section 4. That this Resolution shall be effective upon its passage and approval and all resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
 
Passed and approved December 10, 2002.
 

Chairman
ATTEST:
________________________________
County Auditor
EXHIBIT A

MEMORANDUM OF AGREEMENT
This MEMORANDUM OF AGREEMENT (the “Agreement”) is between Brookings County, South Dakota, party of the first part (the “Issuer”), and VeraSun Ethanol Corporation, a __________ limited liability corporation (the “Company”), party of the second part;
1. Preliminary Statement. Among the matters of mutual inducement which have resulted in the execution of this Agreement are the following:
(a) The Issuer is a political subdivision authorized and empowered by the provisions of Chapter 9, Title 54, of the South Dakota Codified Laws, as supplemented and amended (the “Act”), to issue revenue bonds to finance projects within the meaning of the Act, including sewage and solid waste disposal facilities; and
(b) The Company has requested assurances from the Issuer that the proceeds of the sale of one or more issues of revenue bonds of the Issuer pursuant to the Act in an aggregate amount sufficient to finance costs of sewage and/or solid waste disposal facilities, including without limitation the processing and disposal (through recycling or otherwise) of the solid waste known as “stillage” from the ethanol production process (the “Project”), at the Ethanol Plant to be owned and operated by the Company and located in Brookings County, South Dakota, currently estimated not to exceed $25,000,000, will be made available to the Company.
(c) The Issuer deems it necessary and advisable to issue and sell one or more issues of its revenue bonds in an aggregate amount sufficient to pay costs of the Project, currently estimated not to exceed $25,000,000, in accordance with the provisions of the Act.
2. Undertakings of the Issuer. The Issuer agrees as follows:
(a) That it will issue and sell one or more issues of its revenue bonds, pursuant to the terms of the Act, in an aggregate principal amount sufficient to pay costs of the Project, currently estimated not to exceed $25,000,000.
(b) That it will adopt such proceedings, and authorize and direct the execution of such documents, and take such actions, as may be necessary or advisable to effect the authorization, issuance and sale of the bonds, the acquisition, construction, installation and equipping of the Project, and the leasing or sale or financing of the Project to or for the Company, all as shall be authorized by the Act and mutually satisfactory to the Issuer and the Company.
(c) That the aggregate basic rents or payments under the lease or agreement with the Company shall be such amounts as shall be sufficient to pay the principal of and interest and redemption premium, if any, on the bonds as and when the same shall become due and payable.
(d) That it will take such other acts and adopt such further proceedings as may be required to implement the aforesaid undertakings or as it may deem appropriate in pursuance thereof.
3. Undertakings of the Company. The Company agrees as follows:
(a) That is will use all reasonable efforts to find one or more purchasers for the bonds.
(b) That contemporaneously with the delivery of the bonds it will enter into a lease or agreement with the Issuer, under the terms of which the Company will obligate itself to pay amounts sufficient in the aggregate to pay the principal of and interest and redemption premium, if any, on the bonds as and when the same shall become due and payable, any such lease or agreement to contain such other provisions as shall be mutually acceptable to the Issuer and the Company.
(c) That it will take such further action and adopt such further proceedings as may be required to implement the aforesaid undertakings or as it may deem appropriate in pursuance thereof.
4. General Provisions.
(a) All commitments of the Issuer under paragraph 2 hereof and of the Company under paragraph 3 hereof are subject to the conditions that on or before five years from the date hereof (or such other date as shall be mutually satisfactory to the Issuer and the Company) the Issuer and the Company shall have agreed to mutually acceptable terms for the bonds and of the sale and delivery thereof and mutually acceptable terms and conditions of the lease or agreement referred to above.
(b) If the events set forth in (a) of this paragraph do not take place within the time set forth or any extensions thereof and the bonds are not sold within such time, the Company will reimburse the Issuer for all reasonable and necessary direct out-of-pocket expenses which the Issuer may incur at the Company’s request arising from the execution of this Agreement and the performance by the Issuer of its obligations hereunder, and this Agreement shall thereupon terminate.
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement by their officers thereunto duly authorized as of the 10th day of December, 2002.

BROOKINGS COUNTY, SOUTH DAKOTA
 

By

Chairman
 

ATTEST:
 

_________________________________
County Auditor
 

VERASUN ETHANOL CORPORATION
 

By
__________________
 

ATTEST:
 

_________________________________
Secretary

 I, Janet Willmott, being first duly sworn, do hereby depose and certify that I am the duly qualified and acting County Auditor of Brookings County, South Dakota; that as such I have in my possession, or have access to, the complete corporate and official records of said County and of its officials; that I have carefully compared the transcript hereto attached with the aforesaid corporate and official records; and that said transcript hereto attached is a true, correct and complete copy of all of the corporate records showing the action taken by the Board of County Commissioners of Brookings County, South Dakota on December 10, 2002 in connection with the proposed issuance of revenue bonds for VeraSun Ethanol Corporation.
WITNESS my hand and corporate seal of Brookings County, South Dakota hereto affixed this 10th day of December, 2002.

County Auditor

[SEAL]

Cindy Herding with Banner Associates, Inc. met with the board to discuss the Court House Remodeling.  Motion by Larson, seconded by Telkamp, approving the 2-day extension as requested by Banner Associates, Inc.  Be it noted, if Mills Construction, Inc. because of the delay collects any damages; these damages would be refunded to Brookings County.  All voting “Aye.” Be it noted, the board requested that Banner Associates, Inc. keep the Court Officials and the State Historical Commission updated on the specifications and all Request For Proposals on the Construction Project.

Motion by Telkamp, seconded by Santema, to go into executive session at 10:28am.  All voting “Aye.”  Chair Klavetter declared executive session over at 5:00pm.  Reason – Personnel Matters.  No action at this time.

ADJOURNMENT
The Chair declared the meeting adjourned until 8:30am Tuesday, December 17, 2002.

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