PROCEEDINGS OF THE COUNTY BOARD OF JACKSON COUNTY, MINNESOTA

June 4, 2019

The County Board of Jackson County, Minnesota met in regular session, in the Jackson County
Courthouse Board Room, 405 Fourth Street, City of Jackson, Minnesota, on June 4, 2019. The
following members of the Jackson County Board of Commissioners were present: Catherine
Hohenstein, Don Wachal, Scott McClure, Jim Eigenberg and Philip Nasby. County Coordinator
Steven Duncan and Trish Schulz, Deputy County Coordinator, were also in attendance.

CALL TO ORDER

Chair Hohenstein called the meeting to order at approximately 9:00 a.m. and led the Pledge of
Allegiance.

Motion was made by Commissioner Eigenberg and seconded by Commissioner McClure to adopt
the agenda. The motion carried unanimously.

CONSENT AGENDA

Motion was made by Commissioner Wachal and seconded by Commissioner Nasby to approve the
consent agenda. The motion carried unanimously.

Board Action 19-139: Approve the May 21, 2019 Board of Commissioners regular meeting minutes.

Board Action 19-140: Approve all Commissioner Disbursements in accordance with Minnesota
Statutes 130.01, subd. 4(b), recorded on warrants numbered 88433 through 88596 in the amount of
$7,590,923.42. For the following funds: Revenue, $152,758.38; Road & Bridge, $102,059.89; Ditch
Fund, $725,915.41; TIF, $610.93; Agency, $25.00; Library, $7,682.98; and Tax and Penalty,
$6,601,870.83. A detailed list of claims paid is available at the Auditor/Treasurer’s office upon
request.

Board Action 19-141: Approve utility permits:

ISG – Bore 15” pipe JD 18 – CSAH 23 – Wisconsin Township

ISG – Bore 18” pipe JD 18 – CSAH 23 – Wisconsin Township
ISG – Bore 18” pipe JD 18 – CSAH 23 – Wisconsin Township
ISG – Bore 12” pipe JD 18 – CSAH 34– Des Moines Township
ISG – Bore 12” pipe JD 18 – CSAH 34 – Wisconsin Township
ISG – Bore 15” pipe JD 73 – CR 83 – Enterprise Township
ISG – Bore 24” pipe JD 73 – CSAH 16 – Enterprise Township
ISG – Bore 12” pipe JD 73 – CSAH 16 – Enterprise Township
Federated Rural Electric – Bore electric – CSAH 34 – Wisconsin Township
Iowa Lakes Regional Water – Bore new service – CR 73 – Minneota Township

Board Action 19-142: Approve the request that the first installment of the 2019 Historical Society
appropriation payment, in the amount of $25,500, be paid out as approved in the Fiscal Year 2019
budget.
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Board Action 19-143: Approve one-step increase (end of evaluation period on May 19, 2019) for
Anthony Eidem and Ryan Koep (Full-time, Heavy Equipment Operators, Public Works) setting wage
at $19.11 per hour effective with the May 19, 2019 payroll period for the successful completion of the
evaluation period.

Board Action 19-144: Approve declaring K-9 Bosco, as surplus property, and transfer of ownership to
former Deputy/K-9 Officer Nick Schwalbe.

Board Action 19-145: Approve purchase of Zuercher 911 module, in the amount of $89,450.14,
utilizing enhanced 911 restricted funds.

Board Resolution 19-024: Approve participating in the 2019 Performance Measurement Program.

RESOLUTION 19-024
TO PARTICIPATE IN THE 2019 PERFORMANCE MEASUREMENT PROGRAM

WHEREAS, the 2010 Legislature created the Minnesota Council on Local Results and Innovation; and

WHEREAS, the council on Local Results and Innovation developed a standard set of performance
measures that will aid residents, taxpayers, and state and local elected officials in determining the
efficacy of counties in providing services and measure residents’ opinion of those services; and

WHEREAS, benefits to Jackson County for participation in the Performance Measurement Program
for 2019 are outlined in MS 6.91; and

WHEREAS, Jackson County was certified for the program in 2013.

NOW THEREFORE BE IT RESOLVED, by the Jackson County Board of Commissioners that

Jackson County hereby elects to participate in the 2019 Performance Measurement Program.

BE IT FURTHER RESOLVED, that the following performance measures are adopted by the Jackson
County Board of Commissioners:

 Public Safety: Part I and II Crime Rates, as Reported by the Minnesota Bureau of Criminal
Apprehension.
 Public Works: Average Bridge Sufficiency Rating, based on County and Minnesota Department
of Transportation records.
 Social Services: Percentage of children where there is a recurrence of maltreatment within 12
months following an intervention, based on data available in County records.
 Property Records, Valuation, & Assessment: Level of assessment ratio, based on data available
from the Minnesota Department of Revenue.
 Elections: Accuracy of post-election audit, based on data available in County records.
 Veteran’s Services: Dollars brought into the county for veterans’ benefits.
 Veteran’s Services: Percentage of veterans receiving federal benefits.
 Libraries: Number of annual visits per 1,000 residents, based on data available in County
records.
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  Budget & Financial: Bond rating based on Standard & Poor’s Rating.
 Budget & Financial: Debt service levy per capita and outstanding debt per capita, based on data
available in County records.
 Environment: Amount of hazardous household waste and electronics collected, based on data
available in County records.

BE IT FURTHER RESOLVED, that the results of the adopted performance measures will be
published on the Jackson County website by December 31, 2019.

BE IT FURTHER RESOLVED, that Jackson County will submit to the Office of the State Auditor
the actual results of the performance measures adopted by the county.

Adopted this 4th day of June 2019

_____________________________
Catherine Hohenstein, Chair

ATTEST: ___________________________________
Steve Duncan, County Coordinator (SEAL)

Board Resolution 19-025: Approve grant agreement (GN-00042487) and accept donation of grant
funds from Southwest Initiative Foundation/Jackson Area Community Foundation to the Jackson
County Library to update and improve the library collection of juvenile science non-fiction books.

County of Jackson )
) SS.
State of Minnesota )

Resolution No. 19-025

Resolved by the Board of Commissioners, County of Jackson, and State of Minnesota:

WHEREAS, a grant agreement (GN-00042487) and donation of funds proposal has been made
by the Southwest Initiative Foundation/Jackson Area Community Foundation with this grant of funds
to be used by Jackson County Library to update and improve the library collection of juvenile science
non-fiction books, and;

WHEREAS, Minnesota State Statutes Chapter 465, Section 465.03, “Gifts to Municipalities”
informs that a county governing body shall accept such gifts by resolution and by at least a two-thirds
majority;

IT IS HEREBY RESOLVED, that the Jackson County Board of Commissioners does hereby
approve, by resolution, accepting the grant agreement and the $1,000.00 donation from the Southwest
Initiative Foundation/Jackson Area Community Foundation, which is to be allocated to the Jackson
County Library and used by the Jackson County Library to update and improve the library collection of
juvenile science non-fiction books.

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 Passed and adopted by the Board of Commissioners of the County of Jackson, Minnesota this
4th day of June 2019.

_________________________________
Catherine Hohenstein, Chair
Jackson County, Minnesota Board of Commissioners

ATTEST:

_______________________________(SEAL)
Steven J. Duncan
County Coordinator of Jackson County, Minnesota

RED ROCK RURAL WATER

Commissioner Eigenberg moved to adopt Resolution No.19-026 entitled “Resolution Providing for the
Issuance, Sale and Delivery of an General Obligation Water Revenue Bond, Series 2019 (Red Rock
Rural Water System), of Jackson County, Minnesota, to Pay a Part of the Cost of Water System
Improvements; and Establishing the Terms and Conditions Therefor”. Commissioner Wachal seconded
the motion. The motion carried unanimously.

RESOLUTION NO. 19-026

RESOLUTION PROVIDING FOR THE ISSUANCE, SALE AND DELIVERY OF

A GENERAL OBLIGATION WATER REVENUE BOND, SERIES 2019 (RED
ROCK RURAL WATER SYSTEM), OF JACKSON COUNTY, MINNESOTA,
TO PAY A PART OF THE COST OF WATER SYSTEM IMPROVEMENTS;
AND ESTABLISHING THE TERMS AND CONDITIONS THEREFOR

BE IT RESOLVED, by the Board of Commissioners of Jackson County, Minnesota, as follows:

Section 1. Definitions; Recitals; Findings.

1.01 Definitions. For purposes of this Resolution, the capitalized terms have the meanings
assigned below unless the usage or rules of grammar require otherwise:

2016 Definitive Bond means the Issuer’s $2,879,000 General Obligation Water Revenue Bond,
Series 2016B, dated June 16, 2016.

Act means Minnesota Statues, Sections 116A.01 through 116A.26, as amended.

Bond means the General Obligation Water Revenue Bond, Series 2019 (Red Rock Rural Water
System), as authorized by this Resolution.

Bonds means the Bond and the 2016 Definitive Bond.

Code means the Internal Revenue Code of 1986, as amended.

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 Construction Account means a joint bookkeeping account in the Water Fund separate and apart
from all other funds maintained in the official financial records of, and administered by, the Water
Commission on behalf of the Issuer and designated as the 2019 Bond Construction Account.

Counties means Brown, Cottonwood, Jackson, Lyon, Martin, Murray, Redwood and Watonwan
Counties in Minnesota.

County Board means the Board of Commissioners of the Issuer.

Court means the District Court of the Fifth Judicial District of the County of Cottonwood, State
of Minnesota.

Debt Service Account means a joint bookkeeping account in the Water Fund separate and apart
from all other funds maintained in the official financial records of, and administered by, the Water
Commission on behalf of the Issuer and designated as the 2019 Bond Debt Service Account.

Gross Revenues means all moneys received for all use and for the availability of all facilities of
the System and all money received from the sale of any facilities or equipment of the System.

Issuer means Jackson County, Minnesota.

Joint Powers Agreement means the Joint Powers Agreement dated May 1, 2015, between the
Issuer and Martin County, Minnesota, and acknowledged by the Water Commission.

Loan means the $3,762,000 loan from the USA to the Issuer to provide permanent financing for
a portion of the Project.

Net Revenues means the revenues from time to time received during the term of the Bonds in
excess of the current costs of operating and maintaining the System, including maintenance of a
reasonable operating reserve and necessary allowances for depreciation (i) from the establishment and
collection of charges for connection to the System; (ii) for service furnished and made available by the
System to any person, firm, corporation or political subdivision; (iii) from any federal or state grant
monies; or (iv) from any combination of the receipts described in clauses (i) through (iii) of this
definition.

Operating Expenses means expenses which, under generally accepted accounting principles,
constitute normal, reasonable, and current expenses of operating and maintaining the System;
reasonable reserves for such expenses; and other reasonable operating reserves as the Water
Commission determines to be necessary from time to time, and as may otherwise be permitted by the
Act.

Payment Date(s) means January 1 in the years 2020 through and including 2059.

Pledged Revenues means the Special Assessments, the Net Revenues and investment earnings
on the Special Assessments and the Net Revenues.

Prior Bond means the Issuer’s $6,641,000 General Obligation Bond Anticipation Note dated
October 19, 2015, $3,762,000 in stated principal amount of which remains outstanding and unpaid.

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 Prior Debt Service Fund means the Debt Service Account in the 2015 Bond Anticipation Note
Fund established for the Prior Bond by the Issuer in the Prior Bond Resolution, a joint account
administered by the Water Commission on behalf of the Issuer.

Prior Bond Resolution means the resolution adopted by the County Board on September 15,
2015, entitled, Resolution of Jackson County, Minnesota, Approving and Authorizing an Advance
Agreement with Minnesota Rural Water Finance Authority and Authorizing Participation in Joint
Powers Authority.

Project means the acquisition and construction of certain facilities for and improvements to the
portion of the System located in the jurisdiction of the Issuer and in Martin County.

Public Finance Act means Minnesota Statutes, Chapter 475, as amended, which governs the
issuance of general obligation bonds, such as the Bonds.

Registered Holder means the person or persons in whose name the Bond is registered in the
books of the Issuer from time to time.

Special Assessments means special assessments levied or to be levied against property specially
benefited by the Project extended or to be extended upon the tax rolls in each year of the term of the
Bond, together with interest payable thereon.

System means the Red Rock Rural Water System, a multicounty water system, including area in
each of the Counties.

USA means the United States of America acting through the United States Department of
Agriculture acting under the provisions of the Consolidated Farm and Rural Development Act.

Water Commission means the oversight body of the System.

Water Fund means the segregated fund shown in the books of the Water Commission,
maintained on behalf of the Issuer in accordance with this Resolution.

1.02 Recitals. For a fuller understanding of the matters set forth in this Resolution, the
following factual matters are set forth:

A. Pursuant to the requirements of the Act, on July 20, 1984, the Court entered its
order establishing the System.

B. Pursuant to the requirements of and as set forth in Section 116A.24 of the Act,
the Court appointed the Water Commission to do all things necessary to establish, construct,
operate, and maintain the System, to act as agent of the Issuer in supervising the construction,
improvement and extension of the System and in operating and maintaining the System.

C. Pursuant to Section 116A.20 of the Act, the Issuer is authorized to issue general
obligation bonds payable from the Pledged Revenues to finance the Project in strict accordance
with the requirements of the Act, including refunding the Prior Bond.

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 D. Pursuant to an order and judgment entered July 28, 2015, the Court determined
that the Pledged Revenues are sufficient for payment of temporary and long-term bonds issued
to finance the Project and authorized the Issuer to issue such bonds.

E. The County Board has determined that it is in the public interest and in
furtherance of the purposes of the Issuer to provide financing for the Project.

F. Pursuant to the Joint Powers Agreement, Martin County and the Issuer have each
agreed to pay their proportionate share of principal of and interest on the Bonds in the event that
Pledged Revenues are insufficient for payment thereof.

G. In order to provide temporary financing for the Project, the Issuer issued the
Prior Bond which is subject to redemption and prepayment on any business day. The Issuer has
previously issued the 2016 Definitive Bonds to retire and prepay a portion of the principal of the
Prior Bond.

H. By resolution to be adopted June 13, 2019, the Water Commission will find that
the Pledged Revenues will be sufficient to pay principal of and interest on the Bonds when due.

1.03 Findings. Based on information provided by the Water Commission, the County Board
finds that it is necessary, expedient and in the best interest of the Issuer, its taxpayers, the System and
the customers of the System:

A. to provide long-term financing for a portion of the costs of the Project by

obtaining a loan from the USA, as neither the Issuer nor the Water Commission is able to obtain
sufficient credit elsewhere to finance the cost of the Project, taking into consideration prevailing
private interest rates and terms currently available; and

B. that the Issuer should issue the Bond for the purpose of paying in full and retiring
the outstanding principal amount of the Prior Bond.

1.04 The Bond. Pursuant to the Public Finance Act and Section 116A.20 of the Act, the
Water Commission, on behalf of the Issuer, has applied for and received approval of the Loan. The
County Board authorizes and directs the issuance of the Bond payable to the USA on the terms
provided in this Resolution to evidence the Loan. The designation of the Bond contained in the
definition of “Bond” is approved.

1.05 Delegation. The USA is authorized to advance the principal of the Bond to the Water
Commission as requested to pay the costs of the Project, to pay the costs of issuance of the Bond and to
pay and redeem the outstanding principal of the Prior Bond, or one or any combination of the
foregoing, at the discretion of the USA. Any principal not advanced shall be applied as a prepayment of
the Bond in inverse order of principal installments.

Section 2. Terms of Bond.

2.01 Payments.

A. This issue shall be a single bond, dated the date of delivery, in fully registered form, in
the stated principal amount of $3,762,000, with principal and interest payable in 39 annual installments

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in the approximate annual amount of $182,000 or less on January 1 of each year, commencing January
1, 2021, through and including January 1, 2059, and an interest only payment in the approximate
amount of $69,000 or less on January 1, 2020, subject to approval of the final amounts by the USA.

B. The Water Commission is authorized to approve the final principal amount of the Bond,
the final interest rate on the Bond and the payment schedule for the Bond, subject to the limitations
prescribed in this resolution.

2.02 Interest Rate. The Bond shall bear interest on the advanced and unpaid principal balance
at the rate of 3.625% per annum or such lower rate as may be in effect prior to closing and delivery of
the Bond.

2.03 Application of Payments; Prepayment.

A. Payments shall be applied first to interest due through the applicable Payment Date on
the unpaid principal balance of the Bond and thereafter to reduction of principal. Delinquent payments,
if any, shall be applied by the Registered Holder in the following sequence: (1) billed delinquent
interest, (2) past-due interest installments, (3) past-due principal installments, (4) interest installments
due and (5) principal installments due.

B. The Bond is subject to redemption and prepayment, in whole or in part, at the option of
the Issuer, as exercised by the Water Commission, on any date, at par plus accrued interest. Partial
prepayments of principal on the Bond shall be applied to the principal amounts last to come due. Notice
of redemption shall be given in accordance with the rules and regulations of the USA and the Public
Finance Act.

2.04 Registration and Transfer. The Bond is transferable upon the books of the Issuer at the
office of the County Coordinator, by the Registered Holder in person or by its attorney duly authorized
in writing, upon surrender of the Bond and a written instrument of transfer satisfactory to the County
Coordinator, fully executed by the Registered Holder or its duly authorized attorney. Upon such
transfer, the County Coordinator will note the date of registration and the name of the newly Registered
Holder in the registration blank appearing on the Bond. The Issuer may deem and treat the person in
whose name the Bond is last registered upon the books of the Issuer, with such registration noted on the
Bond, as the absolute owner thereof for the purpose of receiving payment of or on account of the
principal balance or interest on the Bond and for all other purposes; and all such payments so made to
the Registered Holder shall be valid and effectual to satisfy and discharge the liability of the Issuer and
the Water Commission upon the Bond to the extent of the sum or sums so paid and neither the Issuer
nor the Water Commission will be affected by notice to the contrary.

Section 3. Form, Preparation and Delivery of Bond.

3.01 Form. The Bond shall be in substantially the form attached hereto as Exhibit A:

3.02 Execution. The Bond shall be executed on behalf of the Issuer by the manual signatures
of the Chair and the County Coordinator. The corporate seal may be omitted from the Bond as
permitted by law.

3.03 Delivery. The Bond when so prepared and executed shall be delivered under the
direction of the Water Commission to the USA upon receipt of the purchase price.
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 Section 4. Funds, Accounts and Covenants.

4.01 Rate Covenant. The Water Commission has covenanted and agreed with the Issuer, the
Registered Holder and with its customers that (a) it will impose and collect just and equitable rates and
charges to produce Gross Revenues at the times and in the amounts required to pay the normal,
reasonable, and current expenses of operating and maintaining the System and to maintain a reasonable
operating reserve, and also to produce Net Revenues which along with the other Pledged Revenues will
be at least adequate at all times to pay the principal and interest due on the Bonds and on all other
bonds heretofore or hereafter issued and made payable from the Net Revenues, and (b) it will operate
the System and segregate and account for the revenues thereof as provided in this Resolution.

4.02 Funds, Accounts, Appropriations and Revenues.

A. Water Fund.

(1) The Water Commission has agreed to credit all Gross Revenues when received
to the Water Fund.

(2) The Water Fund will be continued as a single fund administered by the Water
Commission on behalf of the Issuer and held to serve as a depository for all Gross Revenues,
including bond proceeds, tax levies and Pledged Revenues.

(3) Except as provided in this Section, the Water Fund may be used only to pay
claims duly approved and allowed for payment of Operating Expenses.

(4) The depository bank selected by the Water Commission for deposit of the
monies constituting the Water Fund is designated by the County Board for purposes of Section
116A.24, subdivision 3(d).

B. Prior Debt Service Fund. On receipt of the purchase price of the Bond, the Water
Commission shall credit $3,762,000 of the proceeds from the sale of the Bond to the Prior Debt Service
Fund. Proceeds of the Bond on deposit in the Debt Service Account are irrevocably appropriated to
payment of the outstanding principal amount of the Prior Bond.

C. Debt Service Account. For the convenience and proper administration of the monies to
be borrowed and repaid on the Bond and to provide adequate and specific security for the Registered
Holder the Water Commission is authorized and directed to create a Debt Service Account, to be
administered by the Water Commission as follows:

(1) Pledged Revenues are pledged and appropriated to the Debt Service Account.
The money in the Debt Service Account must be used for no purpose other than the payment of
principal and interest on the Bond when due.

(2) The Debt Service Account shall be maintained in the manner specified in this
Resolution until the Bond and interest thereon have been paid in full.

(3) The Water Commission, prior to each Payment Date, shall direct is officers or
employees, as applicable, to transfer from the Water Fund to the Debt Service Account amounts

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 of Net Revenues which, along with other Pledged Revenues on deposit in the Debt Service
Account, will be sufficient for the payment of all interest and principal then due on the Bond.

(4) If the balances in the Debt Service Account are ever insufficient to pay all
principal and interest then due on the Bond, upon notice from the Water Commission, the
County Auditor/Treasurer of the Issuer shall provide sufficient money for payment of the from
any other funds of the Issuer which are available for that purpose, including, the proceeds of
taxes levied pursuant to the authority of Section 4.03B and any amounts received under and
pursuant to the Joint Powers Agreement. The funds from which such monies have been taken
shall be replenished by the Water Commission from the Pledged Revenues with interest for the
time actually needed at the rate of eight percent per annum and such funds applied to such
replenishment shall not be deposited in the Debt Service Account.

(5) The County Board affirms the pledge and appropriation to the Debt Service
Account by the Water Commission of the Pledged Revenues in an amount described in clause
(1) above.

D. Construction Account. The Construction Account shall be administered and maintained

by the Commission on behalf of the Issuer as a bookkeeping account separate and apart from all other
funds maintained in the official financial records of the Issuer and the System. The Construction
Account shall be maintained in the manner herein specified:

(1) The Commission shall credit any proceeds of the Bond not used to refund the
Prior Bond to the Construction Account.

(2) From the Construction Account there shall be paid all costs and expenses of
making the Project, including the cost of any construction contracts heretofore let and all other
costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65;
and the moneys in said account shall be used for no other purpose except as otherwise provided
by law. Other costs for which payment from the Construction Account is authorized shall
include costs of legal, financial advisory and other professional services, printing and
publication costs, and costs of issuance of the Bond. Any funds remaining in the Construction
Account upon completion of the Project shall be transferred to the Debt Service Account.

(3) Disbursements from the Construction Account not allocable to prepayment of the
Prior Bond are subject to such additional requirements as are or may be imposed by the USA.

E. Surplus Revenues. The County Board consents to the use of surplus revenues from time
to time received in the Water Fund, in excess of Operating Expenses and required deposits to the Debt
Service Account, for necessary expenditures for the improvement or extension of the System, for the
prepayment and redemption of bonds constituting a lien on the System, and for any other proper
purpose consistent with the Act and the policies established by resolution of the Water Commission;
provided that Special Assessments must solely be used to pay principal of and interest on the Bond.

F. Investments. Monies on deposit in the Water Fund and the Debt Service Account may,
at the discretion of the Water Commission, be invested in securities permitted by Minnesota Statutes,
Chapter 118A; provided, that any such investments must mature at such times and in such amounts as
will permit for payment of principal and interest on the Bond when due.

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 4.03 No Tax Levy.

A. The Court has determined that the Pledged Revenues are sufficient for payment of the
Bond and interest thereon by order entered pursuant to Section 116A.12, subdivision 8 of the Act,
which amounts will be received at the times required and in the amounts not less than five percent in
excess of the amounts needed to meet when due the principal and interest payments on the Bond and,
accordingly, no tax is presently levied for this purpose.

B. It is recognized, however, that the Issuer’s liability on the Bond is not limited to the
Pledged Revenues, and the County Board covenants and agrees that it will levy upon all taxable
property within the Issuer, and cause to be extended, assessed and collected, any taxes found necessary
for full payment of the principal of and interest on the Bond, without limitation as to rate or amount.

Section 5. Tax Covenants.

5.01 General.

A. The Issuer covenants and agrees to comply with requirements under the Code necessary
to establish and maintain the tax exempt status of the Bond, including without limitation
(1) requirements relating to temporary periods for investment, (2) limitation on amounts invested at a
yield greater than the yield on the Bond, and (3) the rebate of excess investment earnings to the United
States if the proceeds of the Bond are not spent within six months of the date of closing and delivery of
the Bond.

B. The Issuer covenants and agrees with the Registered Holder that the Issuer will (1) take
all action on its part necessary to cause the interest on Bond to continue to be exempt from income
taxation including, without limitation, restricting, to the extent necessary, the yield on investments
made with the proceeds of the Bond and investment earnings thereon, making required payments to the
federal government, if any, and maintaining books and records in a specified manner, where
appropriate, and (2) refrain from taking any action which would cause interest on the Bond to be
subject to federal income taxes, including, without limitation, refraining from spending the proceeds of
the Bond and investment earnings thereon on certain specified purposes.

C. No portion of the proceeds of the Bond shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire higher
yielding investments, except (i) for a reasonable temporary period until such proceeds are needed for
the purpose for which the Bond was issued, and (ii) in addition to the above, in an amount not greater
than the lesser of five percent of the proceeds of the Bond or $100,000 (the “minor portion”). To this
effect, any proceeds of the Bond and any sums from time to time held in the Debt Service Account (or
any other Issuer or Water System account which will be used to pay principal and interest to become
due on the Bond) in excess of amounts which under then applicable federal tax exempt bond
regulations may be invested without regard as to yield shall not be invested at a yield in excess of the
applicable yield restrictions imposed by federal tax exempt bond regulations on such investments after
taking into account any applicable “temporary periods” or minor portion made available under federal
tax exempt bond regulations. Money in those funds shall not be invested in obligations or deposits
issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and
to the extent that such investment would cause the Bond to be “federally guaranteed.”

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 D. For purposes of subsection C above, “federally guaranteed” does not mean or refer to
any investment of the proceeds of the Bond: (i) during a reasonable temporary period until such
proceeds are needed for the purpose for which the Bond was issued, (ii) during the 13-month temporary
period applicable to Debt Service Account investments, if any, (iii) as part of a reserve which meets the
requirements of federal tax exempt bond regulations, or (iv) in obligations issued by the United States
Department of the Treasury. The foregoing does not apply to any guaranty by the Federal Housing
Administration, the Veterans Administration, the Federal National Mortgage Association, the Federal
Home Loan Mortgage Corporation or the Government National Mortgage Association.

E. In order to qualify the Bond as a “qualified tax-exempt obligation,” the Issuer makes the
following factual statements and representations:

(1) based on information provided by the Water Commission, the Bond is not a
“private activity bond” as defined in Section 141 of the Code;

(2) the Issuer hereby designates the Bond as a “qualified tax-exempt obligation” for
purposes of Section 265(b)(3) of the Code;

(3) the reasonably anticipated amount of tax-exempt obligations (other than

obligations described in clause (ii) of Section 265(b)(3)(C) of the Code) which will be issued by
the Issuer (and all entities whose obligations will be aggregated with those of the Issuer) during
the calendar year in which the Bond is issued will not exceed $10,000,000; and

(4) not more than $10,000,000 of obligations issued by the Issuer during the
calendar year in which the Bond is issued have been designated for purposes of Section 265(b)
(3) of the Code.

Section 6. Certificate of Proceedings.

6.01 Filing of Resolution. The County Coordinator or his designee is directed to file a
certified copy of this Resolution in the office of the County Auditor/Treasurer and to provide a
certificate stating that the Bond has been duly entered on his register.

6.02 Proceedings. The officers of the Issuer are authorized and directed to prepare and furnish
to the USA and to bond counsel certified copies of all proceedings and records of the Issuer relating to
the authorization and issuance of the Bond and other affidavits and certificates as may reasonably be
requested to show the facts relating to the legality and marketability of the Bond as such facts appear
from the official books and records of the officers’ custody or otherwise known to them. All of such
certified copies, certificates, and affidavits, including any heretofore furnished, constitute
representations of the Issuer as to the correctness of facts recited therein and the actions stated therein
to have been taken.

6.03 Absent or Disabled Officers. In the event of the absence or disability of the Chair or the
County Coordinator, such officers of the Issuer or members of the County Board as in the opinion of
the Issuer’s attorney may act in their behalf shall, without further act or authorization of the Issuer,
execute and deliver the Bond, and do all things and execute all instruments and documents required to
be done or executed by such absent or disabled officers.

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 Section 7. Refunding; Findings; Redemption.

7.01 Findings. It is found and determined that, based on information provided by the Water
Commission and bond counsel:

A. the issuance of the Bond is consistent with covenants in the Prior Resolution and
is necessary and desirable for the reduction of debt service cost to the Issuer and the System and
for the adjustment of the maturities in relation to the resources available for their payment; and

B. proceeds of the Bond and available Water Commission funds will be sufficient to
pay the Prior Bond in full on the date of closing and delivery of the Bond or as soon thereafter
as reasonably possible.

7.02 Notice of Call for Redemption. The outstanding principal amount of the Prior Bond shall
be redeemed and prepaid in accordance with its terms. The Water Commission is authorized and
directed to provide notice of call of redemption of the Prior Bond in accordance with its terms.

7.03 Release of Covenants. When the outstanding principal of the Prior Bond and all interest
thereon have been paid and discharged, all pledges, covenants and other rights granted by this
Resolution to the holder of the Prior Bond shall cease, except that the pledge of the full faith and credit
of the Issuer for the prompt and full payment of the principal and interest on the Prior Bond shall
remain in full force and effect.

Passed and adopted by the Board of Commissioners of the County of Jackson, Minnesota this 4th day
of June 2019.

_________________________________
Catherine Hohenstein, Chair
Jackson County, Minnesota Board of Commissioners

ATTEST:

_______________________________(SEAL)
Steven J. Duncan
County Coordinator of Jackson County, Minnesota

LAND MANAGEMENT/SWCD

Motion was made by Commissioner McClure and seconded by Commissioner Nasby to adopt
Board Action 19-146: Approve the recommendation of the Planning Commission to grant the
Conditional Use Permit amendment, for Round Lake Winery (located at 30120 State Hwy. 264, Round
Lake, MN), to provide for a full kitchen restaurant, bar, party room and additional production space for
the winery, with the following conditions:

1. Shall secure all necessary permits relating to the construction, occupancy and operation of the
proposed expansion from the proper State Agencies for this amendment to be valid. Including
but not limited to the Dept. of Labor and Industry, Dept. of Health and Dept. of Agriculture.

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 2. Shall install an adequately sized on-site subsurface sewage treatment (SSTS) system that is
designed and built by a licensed Minnesota SSTS installer and has a certificate of compliance
issued by Jackson County or work with a licensed engineer to make connection to a Municipal
Wastewater System (City of Round Lake).

3. Any signs on-site shall comply with Section 729 (SIGN REGULATIONS) of the Jackson
County Development Code.

4. All construction and other refuse must be disposed of in the proper manner. No on-site burial or
burning of any prohibited materials.

The motion carried unanimously.

Motion was made by Commissioner Eigenberg and seconded by Commissioner Hohenstein to

adopt Board Action 19-147: Approve purchase of RTVision OneGov Software System. The motion
carried unanimously.

PUBLIC WORKS

Motion was made by Commissioner Nasby and seconded by Commissioner McClure to adopt
Board Action 19-148: Approve award of project (SAP 032-064-050) to R & G Construction Company,
of Marshall, MN, in the bid amount of $1,010,747.46, pending right of way acquisition. The motion
carried unanimously.

Motion was made by Commissioner Wachal and seconded by Commissioner Eigenberg to adopt
Board Action 19-149:

1. Grant a temporary easement to Precision Capital, LLC for the location and installation of utility
pipes on County Property with the following conditions:

A. County Engineer approval of the Project.

B. Precision complies with all County Engineer approved Project terms.

C. Precision may not extent the Utilities to any additional improvements located on
the Precision property without the prior written consent of the County.

D. Precision shall obtain any required permit(s) and permission from the City of
Jackson to connect to the sewer and water lines.

E. The Parties shall amend the Restated Agreement to include the Project upon
completion of the project.

F. Precision shall provide accurate GPS coordinates of the installed utilities to

County Engineer so that the exhibits to the Restated Agreement may be accurately updated.

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 G. Following completion of the Project, the exhibits to the Restated Agreement
shall be updated to locate and depict the installed Utilities.

2. Authorizing the Board Chair and County Staff to update and execute an amended easement for
the water and sewer lines with the terms in current easement agreement as well as the additional
terms included in the temporary easement once the lines are installed.

The motion carried unanimously.

CLOSED MEETING

Motion was made by Commissioner Nasby and seconded by Commissioner Eigenberg to close the
meeting, at 10:08 a.m., as permitted by Minnesota Statutes Section 13D.01, subdivision 2(3) and
13D.05 subdivision 3(c)3, to develop or consider offer for the purchase of real estate (property located
at 603 S. Hwy 86, Lakefield, MN). The motion carried unanimously.

Motion was made by Commissioner Wachal and seconded by Commissioner McClure to re-open
the meeting at 10:25 a.m.. The motion carried unanimously.

Chair Hohenstein directed County staff to proceed as directed.

CLOSED MEETING

Motion was made by Commissioner Wachal and seconded by Commissioner Eigenberg to close
the meeting at 10:25 a.m., as permitted by Minnesota Statutes Section 13D.01, subdivision 2(3) and
13D.05 subdivision 3(c)3, to develop or consider offer for the purchase of real estate (property located
at 160 Industrial Parkway, Jackson, MN). The motion carried unanimously.

Motion was made by Commissioner Eigenberg and seconded by Commissioner Nasby to re-open
the meeting at 10:53 a.m.. The motion carried unanimously.

Chair Hohenstein directed County staff to proceed as directed.

BOARD REPORTS

Commissioner Nasby reported on meetings/events involving United Community Action Partnership

and the Des Moines Valley Health and Human Services (DVHHS) Joint Powers Board.

Commissioner McClure reported on meetings/events involving the DVHHS Joint Powers Board.

Commissioner Wachal reported on meetings/events involving the City of Jackson Finance Committee
to discuss the law enforcement services cost proposal, DVHHS Joint Powers Board and a DVHHS
collective bargaining session.

Commissioner Hohenstein reported on meetings/events involving the Historical Society, Planning &
Zoning Board and the DVHHS Joint Powers Board.

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Commissioner Eigenberg reported on meetings/events involving the Heron Lake Watershed District,
60/90 Corridor and the DVHHS Joint Powers Board.

ADJOURN

Motion was made by Commissioner Eigenberg and seconded by Commissioner Nasby to adjourn
the meeting at 11:01 a.m. The motion carried unanimously.

JACKSON COUNTY BOARD OF COMMISSIONERS

_____________________________________________
Catherine Hohenstein, Chair

ATTEST: _______________________________
Steven Duncan, County Coordinator

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