REGULAR MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, September 20, 2005; 9:30 a.m.

MEMBERS PRESENT: Commissioners Hanson, Adee, Lepper, Briggs, Pavleck

MEMBERS ABSENT: None

OTHERS ATTENDING: Bob Anderson, Susan Baratono, Terry Murray, Richard Lehtinen, Steve Shermoen; Reporters Laurel Beager and Roger Jerome

2005/09-31 Motion by Adee, seconded by Briggs to approve the agenda with additions and deletions. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/09-32 Motion by Adee, seconded by Pavleck to approve the minutes from the September 13, 2005 special meeting. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/09-33 Motion by Lepper, seconded by Adee to approve payment of the Auditor claims in the amount of $33,525.59, to approve payment of the Highway claims in the amount of $86,175.93 and payment to Johnson, Killen & Seiler in the amount of $5,037.60 for personnel legal services. Payment detail is on file in the Auditor/Treasurer and Highway Departments. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/09-34 Motion by Pavleck, seconded by Adee to approve payment to Lyndon F. Larsen, Attorney at Law, in the amount of $11,434.12 for child support legal services under contract through the County Attorney’s Office (reference Board motion 2005/09-13 and Board agreement to wait until November to adjust the County Attorney Budget based on actual legal expense cost after IVD reimbursement). Voting yes: Hanson, Adee, Briggs, Pavleck; voting no: Lepper. Motion carried.

2005/09-35 Motion by Lepper, seconded by Pavleck to amend Resolution 2005/08-16 for recording Attachment A in the official minutes for issuance and sale of the General Obligation Revenue Note for the Jackfish Sewer System State Loan:

WHEREAS, on August 9, 2005, the Board of Commissioners adopted Resolution 2005/08-16 authorizing the issuance and sale of a $4,816,795 General Obligation Revenue Note, Series 2005 and providing for its payment; and

WHEREAS, Resolution 2005/08-16 referred to an attachment which was not included in the official records of the Board of Commissioners.

BE IT RESOLVED by the Board of Commissioners of Koochiching County, Minnesota (the “County”), that Attachment A hereto be appended to Resolution 2005/08-16 in the official records of the Board of Commissioners. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Resolution unanimously adopted and entering Attachment A as follows.

ATTACHMENT A
FORM OF GENERAL OBLIGATION REVENUE NOTE
UNITED STATES OF AMERICA
STATE OF MINNESOTA
KOOCHICHING COUNTY, MINNESOTA
GENERAL OBLIGATION REVENUE NOTE, SERIES 2005

R-1 Rate: 1.00% $4,816,795

Date of Note: September 15, 2005

FOR VALUE RECEIVED, Koochiching County, Minnesota, a duly organized and existing body politic and corporate and political subdivision of the State of Minnesota (the “County”), and whose office address is 715 4th Street, International Falls, Minnesota 56649, for value received, promises to pay to the MINNESOTA PUBLIC FACILITIES AUTHORITY, its successors or registered assigns (the “Lender”) at its offices in St. Paul, Minnesota, or such other place as the Lender may designate in writing, the principal sum of FOUR MILLION EIGHT HUNDRED SIXTEEN THOUSAND SEVEN HUNDRED NINETY-FIVE Dollars ($4,816,795), or such portion thereof as is disbursed to the County (the “Loan”), pursuant to the Minnesota Public Facilities Authority Bond Purchase and Project Loan Agreement between the County and the Lender dated August 1, 2005 and acknowledged by the Sewer Commission of the East Koochiching County Sewer District (the “Loan Agreement”).

From the date of this Note through August 19, 2006, no interest shall accrue on the outstanding principal balance of this Note. From and after August 19, 2006, until the unpaid principal balance of this Note is paid, such unpaid balance shall bear interest at the rate per annum set forth above.

Interest on this Note shall be payable each February 20 and August 20, commencing on February 20, 2007. Principal on this Note shall be payable each August 20, commencing on August 20, 2007. Principal and interest on this Note shall be payable in the amounts and on the dates specified in Exhibit A hereto, subject to adjustment as provided for in the Loan Agreement. Both principal hereof and interest hereon are payable in lawful money of the United States of America by check or draft directly to the registered owner hereof shown on this Note registration records maintained by the County, without, except for the final payment of principal on this Note, the presentation or surrender of this Note, and all such payments shall discharge the obligations of the County to the extent of the payments so made. The final principal payment shall be made upon presentation and surrender of this Note when due. For the prompt and full payment of such principal and interest as they become due, the full faith and credit and taxing power of the County are irrevocably pledged.

This Note is issued by the County pursuant to the authority contained in Minnesota Statutes, Chapters 116A and 475, and all other laws thereunto enabling, and pursuant to an authorizing resolution adopted by the County on August 9, 2005 (the “Resolution”), for the benefit of the East Koochiching County Sewer District (the “District”) for the purpose of providing funds to construct a wastewater collection system to serve the Jackfish Bay area in the District (the “Project”).

The principal of and interest on this Note are payable primarily from special assessments levied or to be levied against property specially benefited by the Project and from the net revenues from time to time received in excess of the current costs of operating and maintaining the District’s wastewater treatment and collection system (the “System”). The Board of Commissioners of the District, by resolution adopted August 18, 2005, has pledged and appropriated the net revenues to be derived from the operation of the System in excess of normal, reasonable and current costs of the operation and maintenance of the System for the payment of the principal and interest when due on this Note, and has covenanted and agreed that it will establish rates and charges for the service of the System, sufficient to pay all costs of operation and maintenance thereof and to produce net revenues adequate, along with the special assessments, to pay the principal amount of the Note and interest thereon when due.

This Note is subject to redemption at the option of the County, in whole or in part on such dates and at such prices and upon such other terms as are specified in the Loan Agreement.

This Note is transferable by the registered owner hereof upon surrender of this Note for transfer at the office of the County Coordinator duly endorsed and accompanied by a written instrument of transfer in form satisfactory to the County Coordinator and executed by the registered owner hereof or the owner’s attorney duly authorized in writing. The County may deem and treat the person in whose name this Note is last registered upon the books of the County, with such registration noted on this Note, as the absolute owner hereof for the purpose of receiving payment of or on account of the principal balance, redemption price or interest and for all other purposes; all such payments so made to the registered holder or upon the order thereof shall be valid and effectual to satisfy and discharge the liability upon this Note to the extent of the sum or sums so paid, and the County shall not be affected by any notice to the contrary.

IT IS CERTIFIED AND RECITED that all acts and conditions required by the Constitution and the laws of the State of Minnesota to be done and to exist precedent to and in the issuance of this Note in order to make it a valid and binding general obligation of the County in accordance with its terms have been done and do exist in form, time, and matter as so required; that all revenues received in payment of debt service cost allocations for this Note are irrevocably pledged and appropriated to the 2005 State Public Facilities Authority Note Debt Service Account established in the Resolution to pay when due the principal of and interest on this Note as provided in the Resolution; that, if needed to pay such principal and interest, the County is required to levy ad valorem taxes on all taxable property in the County, and such taxes may be levied without limitation of rate or amount; and that the issuance of this Note does not cause the indebtedness of the County to exceed any constitutional or statutory limitation.

Additional provisions of this Note are contained in the Loan Agreement and such provisions shall for all purposes have the same effect as though fully set forth at this place.

IN WITNESS WHEREOF, the County has caused this Note to be executed in its name by the manual signatures of its Chair and County Coordinator as of the date first written above.

PROVISIONS AS TO REGISTRATION
The ownership of the unpaid principal balance of this Note and the interest accruing thereon is registered on the books of the County of Koochiching, Minnesota, in the names of the holder last noted below.

ASSIGNMENT

For value received, the undersigned hereby sells, assigns and transfers unto __________________________________ the within Note and all rights thereunder, and does hereby irrevocably constitute and appoint __________________________________ attorney to transfer the said Note on the books kept for registration of the within Note, with full power of substitution in the premises.

Dated: ________________
_______________________________
NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatever.

The County Auditor/Treasurer will not affect transfer of this Note unless the information concerning the assignee requested below is provided.

Name and Address: _______________________________________
_______________________________________
_______________________________________
Taxpayer Identification No.: ____________________
2005/09-36 Motion by Lepper, seconded by Pavleck approving the publication of the 2004 Koochiching County Financial Statement as presented by the Assistant Auditor. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/09-37 Motion by Pavleck, seconded by Lepper to sponsor the International Voyageurs Snowmobile Club and the Ridgerunner Snowmobile Club in the MN Trails Assistance Grant-In-Aid Program Fiscal Year 2006 covering the Blue Ox, Caldwell Brook and Lunstrom Trails and Hagerman, Voyageurs West and Lowman Trails. Sponsorship by the County requires that a Club/County Agreement be in effect (Agreement on file in the Administration Office). As sponsor, the County is accountable to the State for expenditure charged to the State Grant-In-Aid Program but does not require financial support or liability for cost from the County. Said sponsorship is pending receipt by the County the necessary easements for said trails. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/09-40 Motion by Lepper, seconded by Briggs adopting the following resolution authorizing the execution of a Minnesota Department of Transportation Grant Agreement for Capital Improvements (construction of Runway 13-31 extension, construction of a perimeter fence and purchase of a snow plow wing) for the Falls International Airport, jointly owned by Koochiching County and the City of International Falls:

That State of Minnesota Agreement No. 88707, “Grant Agreement for Airport Improvement” for State Project No. 3601-82 at the Falls International Airport is accepted and that the County Board Chair is authorized to execute this Agreement and any amendments on behalf of the County of Koochiching. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/09-41 Motion by Lepper, seconded by Pavleck to provide payment of $75,000 to the Falls International Airport Commission from funds set aside in the 2005 County Budget for the main runway extension project (County budgeted $300,000 for said project but anticipated use is expected to be $150,000 - the final amount will be known in October 2005 for further release of funds and budget adjustment). Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Board received a letter of thanks from the Airport Commission for the support provided in securing the resources needed for extension of the Airport’s main runway.

000 The Board was notified that the Committee to look at the feasibility of a Government Affairs Committee to work with the National Park Service on community issues related to Voyageurs National Park has been established with the first meeting set in October.

2005/09-42 Motion by Lepper, seconded by Briggs to approve purchase of a personal computer in the amount of $1,800 from the 2005 Community Service Budget for the revised social worker position that will be housed in the Agency (formerly position was housed in the School). Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/09-43 Motion by Lepper, seconded by Adee to approve a service agreement with Ridgeview LLC for individual assisted living services as recommended by the Community Service Director. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Board was informed that Lara Strlekar was hired to the State Social Worker position for the Koochiching County Community Service Agency with a starting date of September 27, 2005 and that JoDell Steele was hired to the County Social Worker position with a starting date of September 22, 2005.

2005/09-44 Motion by Briggs, seconded by Lepper adopting the following resolution to rectify a mapping error in the Plat of Newport involving five parcels, County road right-of-way and ownership of a lost parcel:

WHEREAS, it has been determined by the County Surveyor that there are significant errors in the recorded Plat of Newport dated September 8, 1915, which makes it unclear where the platted lots are actually located, and which adversely impacts county roads and five different current property owners; and

WHEREAS, these properties are located within the Jackfish Bay Sewer Project area currently under construction and easements need to be obtained from the affected property owners; and

WHEREAS, all of the parties involved desire to correct this problem, which was discovered by the County Surveyor while doing preliminary survey work for the sewer project, and the current property owners have had discussions among themselves as to the appropriate location of the property boundaries they would like memorialized by an Amended Plat of Newport.

NOW, THEREFORE BE IT RESOLVED that in an effort to assist in the resolution of this matter and to facilitate a corrected Plat of Newport, Koochiching County shall be responsible for having the County Surveyor perform the survey work necessary to have an Amended Plat of Newport prepared and approved at no cost to the property owners, provided: (1) that the affected property owners are all in agreement as to the new property boundaries to be memorialized, (2) that said property owners agree to take all steps necessary to have the amended plat approved and recorded and pay all additional costs necessary to correct any clouds on the marketability of the titles to said property because of the survey issues, including attorney fees, and (3) that all of said property owners provide the requested sewer easement for construction of the Jackfish Bay Sewer Project for the financial compensation of $1.00. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/09-45 Motion by Briggs, seconded by Lepper approving the following guidelines for Easement Acquisition through Condemnation for the Jackfish Sewer Project as recommended by the Environmental Service Director: 1) condemnation will be requested only as a last resort, i.e., when the property owner wants more than $1 for the easement; 2) that the County commits to acquiring the easement at fair market value; 3) that the County will condemn only enough land to get the grinder station on the property within 300 feet of the house; 4) that the property owner will bear the cost of hooking up from the house to the grinder station, regardless of distance; 5) that the County is committed to the “least cost option” in offering compensation for the sewer easement. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/09-46 Motion by Adee, seconded by Pavleck to adjourn the meeting at 10:22 a.m. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.