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    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, January 8, 2008                     9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson and David Corcoran

Others Present:    Engineer Evans; Maintenance Foreman Molling; Environmental Services
                   Director Frank; Zoning Administrator Scanlan; Sheriff Ely; Chief Deputy
                   Sheriff Yeiter; Personnel Director Comstock; Ted Hanson; Emergency
                   Manager Kuhlers; Kevin Kelleher-DEED; Joyce Iverson; Recorder Bauer;
                   Auditor Johnson; Chief Deputy Auditor Meiners; Reporters Warner, Gray &
                   Stotts

Presiding: Auditor Johnson, Chairperson pro tem

       Call to order.

      Auditor Johnson requested nominations for Chairperson for the year 2008.
Commissioner Corcoran nominated Commissioner Thompson. The nomination was seconded
by Commissioner Connery and carried, with Commissioner Graf voting in the negative.

        Commissioner Connery stated that he would like to leave all of the offices the same for
2008. After discussion, motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to leave the office of Vice-Chairperson the
same for 2008, being, Commissioner Graf. Commissioner Connery stated that he felt changing
officers at this time could be detrimental to outcomes. He commended Commissioner Thompson
on her knowledge in dealing with issues on a day to day basis.

      Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to approve the minutes of the December 27, 2007 meeting.

      File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

              County Revenue Fund                               $ 44,866.01
              Road & Bridge Fund                                  40,049.68
                                                               ---------------
              Total                                             $ 84,915.69
                                                               =========




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        At this time Maintenance Foreman Molling met with the Board. He has budgeted
$184,821 to purchase two motor graders and one backhoe in 2008. These pieces of equipment, if
purchased through the state bid prior to February 1st, would cost $165,259. This is a savings of
$19,562. If we wait until after February 1st, the cost will increase by $70,105. He indicated that
the warranty on the equipment he plans to trade in will soon expire. Although the Board has
established a 90 day freeze on major purchases, he estimated that if we sign a purchase
agreement for the equipment now, we should take delivery in mid-March with payment due 30
days after that. Motion was made by Commissioner Corcoran, seconded by Commissioner Graf
and unanimously carried to authorize the purchase of two motor graders and one backhoe
through the state bid at a cost of $165,259.

        Maintenance Foreman Molling inquired whether the budget freeze applies to the annual
crack filling project and the purchase of maintenance rock and chloride. The Board responded
that the freeze is on capital purchases, not on yearly projects such as those listed by Mr. Molling.

       File No. 2 -- Zoning Administrator Scanlan reported on an application for a Conditional
Use Permit on behalf of Eugene Heintz, Brownsville Township, to move more than 50 cubic
yards of fill in a flood plain. Motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to approve the issuance of said permit.

       File No. 3 -- Zoning Administrator Scanlan reported that Houston County issues permits
for mining and extraction for a period of five years, at which time they can be reviewed for
extension. He has received requests from Porteous Olson, Houston Township, and from Steve
Thorson, Yucatan Township, for renewals. Motion was made by Commissioner Graf, seconded
by Commissioner Corcoran and unanimously carried to approve the same.

       File No. 4 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
approve the issuance of the following Zoning Permits:

             Dean Mierau - Money Creek Township - Build garage (24‟ x 30‟)

             Thor and Athena Kolle - Winnebago Township - Build decks (8‟6” x 30‟
             and 13‟6” x 8‟ and 8‟6” x 25‟) porch (7‟6” x 22‟) 3-season room (42‟ x
             45‟) northwest stairs (10‟ x 25‟)

             John Diersen - Mayville Township - Build replacement shed destroyed by
             fire (60‟ x 120‟)

             Doug Heintz - Sheldon Township - Build cattle/hay/machinery shed (80‟ x
             72‟)

             Roger and Shirley Johnson - Money Creek Township - Build 3-season
             porch (9‟ x 12‟)

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             Chris Von Arx - Mayville Township - Build 3-season porch (16‟ x 16‟)
             breezeway (14‟ x 16‟) garage (32‟ x 46‟) covered deck (10‟ x 18‟)

             Brian Myrah - Spring Grove Township - Build addition on house – no new
             bedrooms (10‟ x 20‟)

             Scott Prahl - Black Hammer Township - Build addition on house – no new
             bedrooms (28‟ x 28‟)

             Frank Gillette/Mike Smith - Union Township - Replace existing trailer
             house (16‟ x 80‟)

             Kim and Doris Sherburn - Black Hammer Township - Build addition on
             house – four season room (14‟ x 20‟)

             Rick Van Lin - Hokah Township - Build storage shed (40‟ x 50‟)

             Peter Rosendahl - Spring Grove Township - Build pole shed (64‟ x 142‟)

             Harold Zibrowski - Hokah Township - Replace a flood damaged home (28‟
             x 48‟)

             Donald and Mary Hennessey - Mound Prairie Township - Install modular
             home (27.6‟ x 64‟)

             Gerri Pizzini/SWCD - Hokah Township - Conduct an erosion control
             project

       File No. 5 -- Sheriff Ely reported that he will update the county web-site with statistics
for housing inmates in other counties during 2007.

        File No. 6 -- Discussion was held regarding correspondence received from Jennings State
Bank with regard to a comment made by Treasurer Petersen at a recent board meeting as to why
she chose Eitzen State Bank to borrow funds. Commissioner Connery stated that the position of
County Treasurer is elected and the County Board does not have managerial authority over that
position. Rather, their control is limited to setting the department‟s budget. Motion was made
by Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
approve a letter to Jennings State Bank in this regard.

       At this time Personnel Director Comstock met with the Board. He requested that the
Board take action to hire Carrie Lapham as a Sheriff‟s Department Transport Driver to be used
on an as needed basis. Motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to approve the same.

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       Personnel Director Comstock reported that last week when he made recommendations for
non-union discretionary increases, he inadvertently listed Linda Bahr and omitted Matt Kopp.
He asked that the Board take action in this regard. Motion was made by Commissioner Graf,
seconded by Commissioner Connery and unanimously carried to include Matt Kopp to the list of
employees who received a 2% discretionary increase effective January 1, 2008 and to remove
Linda Bahr from this list.

       File No. 7 -- Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to adopt the following resolution:

                                   RESOLUTION NO. 08-1

         RESOLVED, That under the provisions of Chapter 714, Laws of 1961, duly designated
representatives of Houston County shall be authorized to participate in the meetings and
activities of their respective State Association by membership therein and attendance at meetings
thereof, as contemplated by Statute, and by the provisions of Chapter 529, Laws of 1963; and

        RESOLVED FURTHER, That money be appropriated from the County Revenue Fund to
defray expenses of such officials in connection therewith, said expenses to be paid upon
presentation and allowance of properly itemized claims in an amount not to exceed statute
limitations.

       File No. 8 -- Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to adopt the following resolution:

                                   RESOLUTION NO. 08-2

        BE IT RESOLVED That the following minimum salary be established for county
officials to be elected in 2008:

                         Commissioner                       $18,687

       File No. 9 -- Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve the following appropriations for 2008:




                                  2008 APPROPRIATIONS

              SE Minnesota Initiative Fund                   2,700.00
              SEMAAA                                         2,250.00
              SE MN Development Corporation                  2,250.00

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                 SELCO                                       106,425.00
                 SEMAC (Arts Council)                            500.00
                 SEMCAC - RSVP Program                         2,000.00
                 SEMCAC - Senior Driving Program               2,000.00
                 Historical Society                           37,200.00
                 Historical Society - Matching Funds           5,000.00 Maximum
                 Southern MN Tourism                             985.90
                 Agricultural Society                         18,000.00
                 Historic Bluff Country                        2,475.00

      File No. 10 -- Motion was made by Commissioner Graf, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims for 2007:

                 County Revenue Fund                             $ 95,999.61
                 Road & Bridge Fund                                    834.35
                                                                ---------------
                 Total                                           $ 96,833.96
                                                                =========

       File No. 11 -- Motion was made by Commissioner Connery, seconded by Commissioner
Graf and unanimously carried to approve the 2008 committee appointments.

        File No. 12 -- At this time the printing bids for calendar year 2008, filed pursuant to
advertisement, were opened and read:

          Ellyn Baumann, managing editor/publisher of the Houston Banner, quoted the following
prices:

        SCHEDULE C: Miscellaneous notices not required to be published in the Official Paper
at legal or display rate per line. My display rate for such publications are $5.40 per column inch.

          David Phillips, publisher of the Spring Grove Herald, quoted the following prices:

        SCHEDULE B: Official Paper for publishing the Financial Statement for the year 2007,
first publication, (Chapter 158, Laws for 1993) at $6.25 per inch.

        SCHEDULE C: Miscellaneous notices not required to be published in the Official Paper
at legal or display rate per line. My display rate for such publications are $6.25 per column
inch.

          Chris Hardie, publisher of the Houston County News, quoted the following prices:




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        SCHEDULE C: Miscellaneous notices not required to be published in the Official Paper
at legal or display rate per line. My display rate for such publications are $6.15 per column
inch.

       SCHEDULE D: Publication of the Delinquent Tax List for the year 2007 at $6.15 per
inch. I understand that if I am the successful bidder on this schedule, I will furnish a $2,000
performance bond.

       Daniel McGonigle, managing editor of the Caledonia Argus, quoted the following prices:

       SCHEDULE A: Official proceedings of the County Board, all notices required to be
published in the Official Paper at $8.89 per inch.

       SCHEDULE B: Official Paper for publishing the Financial Statement for the year 2007,
second publication, (Chapter 158, Laws for 1993) at $8.89 per inch.

        SCHEDULE C: Miscellaneous notices not required to be published in the Official Paper
at legal or display rate per line. My display rate for such publications are $8.89 per column
inch.

      Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to accept all bids for 2008 printing.

        File No. 13 -- At this time Joyce Iverson met with the Board and presented the revised
Houston County Business Flood Recovery Application Checklist. She stated that, with regard to
fees, Recorder Bauer has suggested that this be discussed with the Land Use Committee.

        File No. 14 -- Joyce Iverson reported on policy issues and changes with the loan structure
that came about through working with County Attorney Jackson as well as discussions with the
review committee and the EDA. Language has been built into the agreement so that amounts are
very clear, should someone want to pay off their loan. Placed on file were the Houston County
Business Flood Recovery Loan Program Revolving Loan Fund Guidelines which outline the loan
structure which is being recommended. After discussion, motion was made by Commissioner
Corcoran, seconded by Commissioner Connery and unanimously carried to approve the same.

       Joyce Iverson reported that she is working with County Attorney Jackson and he is
putting together the language for the loan agreement, promissory note, guarantee, etc. She
recommended that the guarantee be waived for entities that are association or membership
organizations.

         Commissioner Corcoran reported that he initially served on the loan review committee.
However, he felt that it may be a conflict to serve on that committee and then vote on approving
it at the County Board level. Therefore, he is no longer serving on the loan review committee.
He indicated that there are very competent members on the loan review committee.

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       File No. 15 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to adopt the following resolution:

                                 RESOLUTION NO. 08-3
                       RESOLUTION OF APPROVAL FOR
           BUSINESS FLOOD RECOVERY REVOLVING LOAN FUND LOAN

     WHEREAS: the Houston County EDA Flood Recovery Loan Review Committee has
reviewed a loan application from TWIN CREEKS GOLF, and the Committee has found that the
application complies with the program policies and also recommended approval of a loan in the
amount of $129,727.00.

    NOW THEREFORE BE IT RESOLVED that the Houston County Board of Commissioners
hereby approves the loan application for TWIN CREEKS GOLF, 248 Twin Creeks Drive,
Hokah, in the maximum amount of $129,727.00, is hereby recommended for approval by the
Houston County Board of Commissioners.

       File No. 16 -- Motion was made by Commissioner Connery, seconded by Commissioner
Graf and unanimously carried to adopt the following resolution:

                                 RESOLUTION NO. 08-4
                       RESOLUTION OF APPROVAL FOR
           BUSINESS FLOOD RECOVERY REVOLVING LOAN FUND LOAN

    WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from ACE TELEPHONE ASSOCIATION, and the
Committee and EDA have found that the application complies with the program policies and also
have recommended approval of a loan in the amount of $40,300.00.

     NOW THEREFORE BE IT RESOLVED that the Houston County Board of Commissioners
hereby approves the loan application for ACE TELEPHONE ASSOCIATION, 207 East Cedar
Street, Houston, in the maximum amount of $40,300.00.


       File No. 17 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to adopt the following resolution:



                                 RESOLUTION NO. 08-5
                            RESOLUTION OF APPROVAL FOR

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            BUSINESS FLOOD RECOVERY REVOLVING LOAN FUND LOAN

    WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from CREST PRECAST, INC., and the Committee
and EDA have found that the application complies with the program policies and also have
recommended approval of a loan in the amount of $193,438.00.

    NOW THEREFORE BE IT RESOLVED that the Houston County Board of Commissioners
hereby approves the loan application for CREST PRECAST, INC., 609 Kistler Drive, La
Crescent, in the maximum amount of $193,438.00.

       File No. 18 -- Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to adopt the following resolution:

                                  RESOLUTION NO. 08-6
                        RESOLUTION OF APPROVAL FOR
            BUSINESS FLOOD RECOVERY REVOLVING LOAN FUND LOAN

    WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from RUSHFORD GOLF CLUB, INC., and the
Committee and EDA have found that the application complies with the program policies and also
have recommended approval of a loan in the amount of $6,129.00.

    NOW THEREFORE BE IT RESOLVED that the Houston County Board of Commissioners
hereby approves the loan application for RUSHFORD GOLF CLUB, INC., 23239 Hwy 16,
Rushford, in the maximum amount of $6,129.00.

        File No. 19 -- Joyce Iverson reported that there were some questions regarding how the
administrative funds could be used. They can be used to cover the costs involved with
administering and servicing the loans. She suggested that this be discussed with the County
Attorney and the Auditor‟s Office. Also, she received an e-mail from Bart Bevins, DEED,
indicating that Houston County is not liable if loans are not repaid.

        Recorder Bauer reported that Fillmore County is not charging mortgage registration tax
for these loans. It was agreed that Auditor Johnson will contact Fillmore County to determine
what they are basing this decision on.

        At this time Environmental Services Director Frank met with the Board and reported on
the water plan update which staff has been working on for approximately two years. In the early
1990‟s, the state asked counties to adopt 5 year comprehensive water plans. They have now
changed this to 10 year plans. Therefore, our new plan will run from 2007 through 2017. He
indicated that Houston County is divided into 4 watersheds, being the Root River, Upper Iowa,


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Upper Mississippi/Reno and Upper Mississippi/La Crescent watersheds. Staff and citizens have
looked at the County as a whole and came up with 5 priorities to address in the water plan:

    1)   Changes in agriculture and the affects on water resources
    2)   Impacts of development on slopes/blufflands
    3)   Recreational uses impact on water
    4)   Education and awareness of resources in sensitive areas
    5)   Ground water sensitivity in karst topography

        Mr. Frank reported that they drafted goals and strategies on how to address these issues
and how we can best protect our ground and surface water. They plan to review these goals and
objectives in 5 years.

        Mr. Frank reported that the water plan was sent to all state and local agencies for input.
The only concern expressed was from BWSR, as they wanted us to look more closely at flood
control projects and flooding in the County. Language has been implemented to address these
concerns.

      File No. 20 – Mr. Frank asked that the Board take action at this time to adopt and
implement the comprehensive water plan. After this is done, his office will notify local units of
government within the County of the adoption of the plan. Motion was made by Commissioner
Corcoran, seconded by Commissioner Graf and unanimously carried to adopt the following resolution:

                                    RESOLUTION NO. 08-7
                                 Adoption and Implementation
                                    After BWSR Approval
      WHEREAS, the Houston County Board of Commissioners has been notified by the
Minnesota Board of Water and Soil Resources that the Houston County Comprehensive Local
Water Management Plan has been approved according to Minnesota Statutes Chapter 103B.301:
       NOW, THEREFORE BE IT RESOLVED, the Houston County Board Commissioners
hereby adopts and will begin implementation of its approved comprehensive water plan.
       BE IT FURTHER RESOLVED, after the adoption of the local comprehensive water
management plan, the Houston County Board shall amend existing water and related land
resources plans and official controls as necessary to conform them to the applicable and
approved comprehensive water plan.
       BE IT FURTHER RESOLVED, after the adoption of the local comprehensive water
management plan, Houston County shall notify local units of government within the County of
the adoption of the plan or amendments to the plan. The local units of government are required to
submit existing water and related land resources plans and official controls within 90 days to the
County Board for review.


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        BE IT FURTHER RESOLVED, Within 180 days, the Houston County Board shall
review the submitted plans and official controls and identify any inconsistencies between the
local plans and official controls, and local comprehensive water management plan. The Houston
County Board shall specify applicable and necessary measures to bring the local plans and
official controls into conformance with the local comprehensive water management plan.

         BE IT FURTHER RESOLVED, if a local unit of government disagrees with any changes
to its plan, the local unit has 60 days after receiving the county‟s recommendations to appeal the
recommendations to the Board of Water and Soil Resources.
        BE IT FURTHER RESOLVED, after receiving the recommendations of the Houston
County Board, or a resolution of an appeal, a local unit of government has 180 days to initiate
revisions to its plan or official controls. The new or revised plans and official controls must be
submitted to the Houston County Board for review and recommendations.
        Commissioner Connery reported on a HVMHC meeting which he attended. They elected
officers. Theresa Hodgon was elected president for 2008. They also adopted the 2008 budget.

      Commissioner Corcoran reported on union negotiations which he and Commissioner
Connery have been involved with.

       Commissioner Corcoran reported on a zoning meeting he attended.

       Chairperson Thompson reported on a SWCD meeting she attended.

        File No. 21 -- At this time Kevin Kelleher, Department of Employment and Economic
Development, met with the Board to provide an update on the disaster response. He stated that,
if there is a disaster and you look at a pile of rubble that used to be your home and/or business,
no amount of aid can get there fast enough. However, the reality of the situation is that we have
to deal with how money is given and allocated, accountability, the operational transfer of funds,
etc. He indicated that there has been some bad press on the disaster funding, some of which
dealt with the mitigation plan. He stated that the application process generally takes about six
months. So if the County can hire a consultant and get a mitigation plan in place in six months,
there will be no actual holdup in terms of obtaining funding. Also, he indicated that he has seen
a number of articles about people with issues “falling through the cracks” and not receiving
service. He reported that he recently saw such an article in the paper and called the individual to
offer assistance, and he found out that they had never even applied for funding. He indicated
that there were 3 instances like this last week. He stated that money cannot be given out if an
application is not made. He stressed the importance of applying for programs, even if you do not
have “all your ducks in a row”, as amendments to applications can be made as needed.

        Mr. Kelleher stated that he felt this situation has gone much better historically than other
disasters in Minnesota or other parts of the country. He felt that SBA and FEMA did a
reasonably good job and offered what congress gave them to offer. He commended local staff
for the hard work they have done to offer assistance in a timely manner. He also indicated that
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the special session was held in historic time and the funding “hit the street” faster than ever
before.

        Mr. Kelleher stated that there have been 15 federally declared disasters in Minnesota in
the last 10 years, 10 of which had flood components. He indicated that, in terms of recovery
response, we were ahead of the game in getting things done. He felt the state, Semcac and
emergency managers all had to learn quickly. He also mentioned that, not only were Semcac and
the Development Corporation affected by the flood, but they also had to step up to the plate and
gear assistance to their communities for recovery while they were recovering themselves.

        Mr. Kelleher stated that there are always individuals that fall into “gray areas” and these
are not “cookie cutter” situations.

       Mr. Kelleher presented information regarding recovery response in floods from 1997 to
2007 which indicated that response was quicker and that more funding was made available in the
2007 flood.

        Mr. Kelleher gave an overview of the amounts of funding made available through various
state and federal agencies. He indicated that, if funds are not fully utilized for the programs they
were allocated to, there is the possibility of transferring funds to where there is a need.

        Mr. Kelleher reported that there is $10 million available for public infrastructure
assistance for things that FEMA did not cover.

       Mr. Kelleher stated that he is available to offer individual assistance to anyone needing it,
and he asked that the Board let him know if there is anyone they are aware of who has an issue
with funding.

         The Board inquired whether Mr. Kelleher is aware of the resolution Representative
Tschumper asked Houston and Fillmore Counties to adopt requesting an MHFA staff position to
assist individuals with issues related to flood assistance applications. Mr. Kelleher indicated that
the Board should weigh the timing of this, and whether you can get someone on board fast
enough that will come up to speed quickly enough to deal with the agencies involved so that they
can meet appeal deadlines. He reiterated that the possibility exists that excess funds can be
reallocated to where it is needed, and he felt this could happen in the area of housing. After
discussion, it was agreed that Chairperson Thompson will discuss this issue further with Fillmore
County.

        Mr. Kelleher reported that the Emergency Manager in Fillmore County asked him to look
into assisting with obtaining flood plain maps. They hope to get our federal legislators to
intervene in this regard. He reported on the high resolution digital elevation model, and
indicated that leftover funds could be used to make this available for the flood recovery process.



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      Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to place on file the following items from the consent agenda:

                  File No. 22 -- Correspondence to Payroll regarding the increase
         in Liza Jandt‟s position to full-time until a replacement is hired for the
         vacant Child Support position.

                  File No. 23 -- Correspondence from the Minnesota Department
         of Health regarding CY 2008 and 2009 Adult Mental Health Grant
         Awards.

                  File No. 24 -- Correspondence from Briggs & Morgan
         regarding public hearings to be held 1/28/08 at 5:30 p.m. at the La
         Crescent City Hall in connection with Proposed TIF District #4-2 and
         TIF District #6-1.

                  File No. 25 -- Correspondence from Joe Wheeler regarding
         phasing out Section 8 Rental Assistance in Houston County.

                  File No. 26 -- Memo from Auditor Johnson to County Board
         regarding a caseworker for flood victims.

                 File No. 27 – A contractual agreement between Woodland and
         Extension for cleaning services.

                  File No. 28 – An e-mail from Wayne Stenberg regarding the
         $50,000 request for funds that would allow a GMHF match.

                   File No. 29 – A list of CJC expenditures for approximately the
         last 10 years which was prepared at Chuck Schulte‟s request.




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       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Connery and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, January 15, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




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          PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, January 15, 2008                    9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson and David Corcoran

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Mrs. Sweeney and 9th
                   Grade Civics Class; County Attorney Jackson; Personnel Director Comstock;
                   Emergency Manager Kuhlers; Representative Ken Tschumper; Robin
                   Tschumper-Houston County Women‟s Resources; Joyce Iverson and
                   Michelle Vrieze-SE MN Development Corporation; PHN Director Rock;
                   Health Educator Myhre; Jeff Gerard; Reporters Warner & Gray

Presiding: Ann Thompson Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Connery and
unanimously carried to approve the minutes of the January 8, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $316,976.74
              Road & Bridge Fund                                 260,897.28
                                                               ---------------
              Total                                            $577,874.02
                                                               =========

     Chairperson Thompson welcomed Mrs. Sweeney and her 9th Grade Civics Class. The
Commissioners introduced themselves and reported on the districts they represent.

        File No. 2 -- At this time Emergency Manager Kuhlers met with the Board and requested
approval of a DNR Grant in the amount of $120,000.00 for debris removal from public
waterways. Maintenance Foreman Molling inquired whether the funding can be used for
streambank stabilization. Mr. Kuhlers responded that it cannot. Mr. Molling indicated that there
is a need for streambank stabilization in some areas. Motion was made by Commissioner
Corcoran, seconded by Commissioner Graf and unanimously carried to adopt the following
resolution:


                                  RESOLUTION NO. 08-8

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       BE IT RESOLVED that Houston County, Minnesota, hereinafter referred to as the
“Applicant” act as legal sponsor for the projects contained in the In-Stream Debris Removal
Grant Application submitted on November 20, 2007, and that Kurt Kuhlers, Emergency
Management Director, is hereby authorized to apply for the Department of Natural Resources for
funding of this project on behalf of the Applicant;

        BE IT FURTHER RESOLVED that the Applicant has the legal authority to apply for
financial assistance, and the institutional, managerial and financial capability to ensure adequate
management of the proposed project;

        BE IT FURTHER RESOLVED that the Applicant has not violated any Federal, State or
local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other
unlawful or corrupt practice;

        BE IT FURTHER RESOLVED that upon approval of its application by the state, the
Applicant may enter into an agreement with the State of Minnesota for the above-referenced
project, and that the Applicant certifies that it will comply with all applicable laws and
regulations as stated in the contract agreement;

        NOW, THEREFORE, BE IT RESOLVED that Kurt Kuhlers, Emergency Management
Director, is hereby authorized to execute such agreements as are necessary to implement the
project on behalf of the applicant.

        Mr. Kuhlers updated the Board on the Debris Removal Grant for ag land and residences.
To date there have been 84 applications processed, of which 72 were for ag land and 12 were for
homeowners. A total of $352,211.97 of our $500,000.00 allocation has been spent to date, of
which $242,534.00 has been awarded for ag land debris removal and $109,677.97 for residential
debris removal. Olmsted, Dodge, Wabasha and Steele Counties have not used any of their debris
removal funding, therefore, there is an additional $950,000.00 in funding available. Mr. Kuhlers
indicated that special legislation will allow unused funds to be transferred to counties needing
additional assistance. If these available funds are reallocated to Houston, Fillmore and Winona
Counties, this could mean approximately $316,000.00 additional funding per county. Mr.
Kuhlers reported that the deadline for expenditure of the grant funding is June 30, 2008. He has
requested an extension to this deadline since some of the work cannot be done until next spring.

       At this time County Attorney Jackson met with the Board to provide an update on the
Criminal Justice Center issue. He indicated that the Board had previously authorized a
committee, consisting of Commissioners Graf and Thompson as well as Attorney Scott
Anderson and County Attorney Jackson, to work with the City of Caledonia in terms of
attempting to determine an acceptable site for the Criminal Justice Center. Since the formation
of the committee, one meeting was held in December. Another meeting was scheduled,
however, there was a delay in getting information so the meeting was cancelled. Subsequently,
the County received a letter from the City outlining their current thoughts. One proposal would

REGULAR SESSION                                                                       Page      15
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be to modify the City‟s zoning language as it relates to light industrial zones. This would allow
county offices, but not a jail facility, as a permitted use. A Conditional Use Permit would be
required for siting a jail, which would require a public hearing. The proposal also contains
additional restrictive language regarding setback conditions from residential zones. County
Attorney Jackson indicated that Attorney Anderson is reviewing this proposal and will provide
an in-depth analysis to the County Board.

      At this time Robin Tschumper, Executive Director of Houston County Women‟s
Resources, and Representative Ken Tschumper met with the Board.

       Robin Tschumper stated that she wants to give voice to the homeless people in our
County. She expressed her concern regarding the Board‟s position on SEMMCHRA‟s request
for $4,950.00 from Houston County to assist them with covering administrative shortfalls in
2004, 2005 and 2006. Representative Tschumper stated that he spoke with County Attorney
Jackson regarding the issues involved, and he understands where the Board is coming from,
however, he does not want to see the people in need of housing caught in the middle.

       Chairperson Thompson stated that the controversy is that SEMMCHRA is administering
federal funds and they are requesting counties to subsidize their program when the federal
funding is insufficient to run their agency. Commissioner Connery added that, when they
requested this money from Houston County, they did not indicate what caused the shortfall or
what corrective action they are taking to keep this from happening again. He stated that
SEMMCHRA‟s primary source of funding is HUD, with various state agencies providing
additional funding. He stated that Representative Tschumper contacted all of the County
Commissioners in this regard, and he asked whether he also contacted the Board members of the
SEMMCHRA.

       Representative Tschumper stated that he just became aware of this situation last week,
however, he will try to determine where the shortfall is coming from. Also, he planned to
contact the board members of the SEMMCHRA. He also questioned why Houston County does
not have a seat on SEMMCHRA‟s board.

       Chairperson Thompson indicated that there appears to be no way to discontinue having
SEMMCHRA in charge of Houston County‟s Section 8 program. She stated that the County
normally accepts proposals for services to determine who can provide the best price on services,
and she questioned why this situation was different. Commissioner Connery added that Houston
County has requested a copy of this organization‟s audited financial statement, but what we
received was not as detailed as we requested. Commissioner Graf expressed his concern that
Houston County is being asked to fund the largest portion of the shortfall.

        Robin Tschumper stated that her organization is funded by HUD, and they receive the
same amount today as they did ten years ago when June Kjome Place opened. She indicated that
it costs their organization $1,500.00 in administrative costs just to apply for the HUD grant.
Also, she felt that Houston County‟s proximity to La Crosse and it‟s larger potential workforce

REGULAR SESSION                                                                     Page      16
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may have something to do with Houston County having a larger number of Section 8 vouchers
than our neighboring counties. Representative Tschumper stated that his biggest concern is the
$30,000.00 to $50,000.00 that Section 8 vouchers bring into this county for landlords. He
indicated that he will do his best to research this funding shortfall issue. Also, he will contact
several state agencies to determine if he can recoup Houston County‟s $4,950.00.

      Motion was made by Commissioner Connery, seconded by Commissioner Corcoran and
unanimously carried to issue payment in the amount of $4,950.00 to SEMMCHRA.

        Commissioner Connery asked Representative Tschumper to support and work with
Houston County in our efforts to do county based purchasing in conjunction with StedFast under
a single provider system. Representative Tschumper stated that the counties that have done
single provider systems have been very successful, and he indicated his support in this regard.

        File No. 3 -- Representative Tschumper stated that a December issue of the Caledonia
Argus indicated that Houston County had to borrow money for cash flow purposes, as they had
not yet received flood disaster reimbursement from the government. He indicated that he
checked into this and discovered several glitches. The state had expected Houston County to
sign off as the projects being complete before issuing any payment to the County. Houston
County is reluctant to sign off, as there is additional work that must be done in the spring. Also,
state law requires that, when you use bonding money for projects, a lien must be placed on the
property involved. Therefore, all of the road work being done would be required to have liens
filed. Much of this property involves easements, therefore, liens would have to be filed against
adjoining properties. However, he indicated that he was successful in getting this requirement
waived. Placed on file was a memorandum from the Minnesota Department of Finance waiving
this requirement.     Representative Tschumper indicated that Highway Accountant Schroeder
should be completing her paperwork this week, and Houston County should be receiving a check
for approximately $2.5 million shortly thereafter.

        File No. 4 -- Representative Tschumper reported on funding available for a caseworker
through MHFA to provide assistance to flood victims in dealing with FEMA and SBA. He
indicated that there would be no cost to Houston County and that office space will be provided in
Rushford. Chairperson Thompson stated that Houston County does not have the large number of
housing problems that Rushford has as a result of the flood, therefore, she felt it makes sense to
share the position. Representative Tshcumper indicated that Fillmore County has agreed to act
as fiscal agent for this program.

        File No. 5 -- At this time Personnel Director Comstock met with the Board and presented
a letter of resignation from Pete Johnson, Houston County Auditor, effective May 31, 2008.
Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to regretfully accept said resignation. The Board commended Auditor
Johnson for his professionalism and for the excellent job he has done.



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        File No. 6 -- Personnel Director Comstock stated that Minnesota Statutes allow the
County Board to fill a vacancy in the position of County Auditor by appointing someone for the
balance of the elected term. He inquired whether the Board wished to explore consolidating any
elected offices at this time. Also, the state auditors have had conversations with the County
regarding the benefits of having a County Finance Department. He felt this could be considered
when considering replacement options. He suggested appointing a committee to review these
options. Commissioner Connery stated that discussions regarding reorganization are very
important, and should involve the entire Board upfront. The Board also asked that the audit of
the Auditor‟s Office completed years ago by David M. Griffith and Associates be made available
to them for their review. After discussion, it was agreed to schedule further discussion on this
matter for 1:00 on Tuesday, February 12th.

       File No. 7 -- Personnel Director Comstock presented a press release indicating that
StedFast Health Plan has named Charity Floen as Chief Executive Officer.

       Personnel Director Comstock reported that interviews for Assistant County Attorney are
scheduled for January 17th and 18th. He invited the Commissioners on the Law Committee to
serve on the interview committee.

        Personnel Director Comstock reported that Barb Kirchoff has indicated that she is no
longer interested in serving as park manager for Wildcat Park. He indicated that she did a
wonderful job. The County needs to move forward with hiring a manager for the 2008 camping
season. The Wildcat Park Committee is working on this process and is putting together a packet
of information for people who wish to apply. This is an independent contractor position, rather
than a county employee. The Wildcat Park Committee is also looking at updating park rules and
establishing ordinances. They are also exploring options with regard to assigning seasonal camp
sites consistent with Corps of Engineers rules.

        File No. 8 -- The time being 10:12 a.m., the Public Hearing to discuss Houston County‟s
proposed application for a Small Cities Grant was convened. Michelle Vrieze, SEMDC, stated
that this grant involves the cities of Houston, Caledonia and Spring Grove. She indicated that the
process has changed. Applications used to be made for individual cities. Now DEED wants
applications to be made under the County umbrella. If approved by the Board and the cities
involved, the application will be submitted by January 31st and we should receive a decision by
April 1st as to whether our application is approved for funding. They hope to fund 20
commercial properties and 20 housing rehab projects. A ten year lien would be placed on the
properties. 10% will be repaid to the County on commercial properties. On residential
properties, they do not have to repay the funds unless they sell the house within ten years. If the
funding is not entirely allocated within six months, the remaining funds will be made available to
the rural areas county-wide. Chairperson Thompson asked for comments from the public. There
were none. After discussion, the public hearing was closed at 10:25 a.m.

        Commissioner Connery expressed his concern that this funding will only include rural
areas if it is not used up by the three cities involved. After discussion, motion was made by

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Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to adopt
the following resolution:

                                 RESOLUTION NO. 08-9
                        Designating A Grant Applicant for the 2008
                         Houston County SCDP Application and
                        Approving a Cooperative Agreement Policy

       WHEREAS: The Cities of Caledonia, Houston, Spring Grove, and Houston County have
recognized a common problem in providing safe and sanitary housing, and providing for
commercial building stabilization to the residents of Houston County, and

       WHEREAS: a waiting list for housing rehabilitation has been developed by Southeastern
Minnesota Development Corporation (SEMDC). Preliminary Applications were mailed out and
received by SEMDC from the following:

              City                  Preliminary Applications Mailed      Received
              Caledonia                    1231                            60
              Houston                       376                            32
              Spring Grove                  508                            49

        WHEREAS: Houston County has agreed to utilize future Revolving Loan Funds for
housing and commercial rehabilitation activities and private lenders have committed funds to
assist in housing and commercial rehabilitation. The City of Spring Grove has committed
Program Income dollars to assist with housing and commercial rehabilitation activities: ($4,244
commercial & $4,842 housing)

         WHEREAS: Houston County has been invited by the Department of Trade & Economic
Development to submit a FULL APPLICATION on behalf of the Cities of: Caledonia, Houston
and Spring Grove to provide housing and commercial rehabilitation as defined in the Small
Cities Development Program Full Application, and such activities are to be completed within
thirty (30) months of project award.

       NOW THEREFORE BE IT RESOLVED, that all of the undersigned cities agree that
Houston County is hereby designated as the official applicant/recipient for the HOUSTON
COUNTY 2008 SMALL CITIES DEVELOPMENT PROGRAM to be submitted on or before
January 31, 2008.

        BE IT FURTHER RESOLVED that the undersigned cities recognize the need to deliver
these funds on an equitable basis to the residents within the participating cities and also in a
timely manner to comply with the grant delivery requirements. To assure availability to
residents in all participating communities a preliminary unit goal has been developed and
consists of the following goals by city:


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               City                   Activity                       Unit Goal
               Caledonia              Owner Rehab                           10
               Caledonia              Commercial Rehab                      10
               Houston                Owner Rehab                           5
               Houston                Commercial Rehab                      5
               Spring Grove           Owner Rehab                           5
               Spring Grove           Commercial Rehab                      5
               Housing Total                                                20
               Commercial Total                                             20

To achieve the Owner Occupied Rehabilitation goals the County‟s rehabilitation policies will
provide that direct contact with all those on the submitted waiting list, and including the list of
preliminary applications occur upon grant award and allow up to six (6) months for any owner
rehabilitation applications to be submitted from residents of each community. After this six (6)
month period, the policies will allow applications for funds to be committed in any participating
city and after eighteen (18) months applications from any location within Houston County may
be processed for funds for owner rehabilitation. In the event that applications are not received
from a city, the grant administration policies shall allow that individual applications shall be
processed on a „first-come-first-served‟ basis to assure that all grant funds are delivered within
the approved grant period. This will be completed using an income verification process.

To achieve the Commercial Rehabilitation goals the County‟s rehabilitation policies will provide
that direct contact with all those on the submitted commercial waiting list and letters of intent,
occur upon grant award and allow up to twelve (12) months for any commercial rehabilitation
applications to be submitted from properties in Caledonia, Houston and Spring Grove. After this
twelve (12) month period, the policies will allow applications for funds to be committed in any
participating city, within Houston County, willing to designate a „commercial rehabilitation
project area‟ may be processed. In the event that a sufficient number of applications are not
received, the grant administration policies shall allow that commercial rehabilitation applications
shall be processed on a „first-come-first-served‟ basis to assure that all grant funds are delivered
within the approved grant period.

        BE IT FURTHER RESOLVED that, if required by DEED, within two (2) months of
grant award, the undersigned participating cities will agree to a COOPERATIVE AGREEMENT
for the above outlined rehabilitation program. Any cities failing to agree to the COOPERATIVE
AGREEMENT will become ineligible for participation under this rehabilitation program.

       File No. 9 -- At this time PHN Director Rock and Health Educator Myhre met with the
Board to provide an update on 2007-2008 Public Health Preparedness grant actives. They also
reported on the SNS, being the Strategic National Stockpile, which is available from the federal
government to assist in doing clinics in the event of a pandemic situation. PHN Director Rock
and Emergency Manager Kuhlers also reported on their efforts in connection with the August
flooding, for the benefit of the students present.


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       Auditor Johnson stated that the County Board does not normally hold a meeting on the
fifth Tuesday of the month. However, January 1st was a holiday and fell on a Tuesday.
Therefore, we will only have three meetings if we do not meet on the fifth Tuesday. After
discussion, it was agreed to hold a board meeting on January 29th.

       File No. 10 -- Auditor Johnson reported on correspondence received from the Minnesota
Department of Revenue indicating that the 2008 County Board of Equalization must be held on
either Monday, June 16, 2008, or Tuesday, June 17, 2008. After discussion, motion was made
by Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
schedule the meeting for 1:00 p.m. on Tuesday, June 17, 2008.

       File No. 11 -- Auditor Johnson reported on a Final Estimate on behalf of Mathy
Construction in the amount of $65,606.19 for SAP 28-604-27, SAP 28-604-28, SAP 28-617-08,
SAP 28-617-09 (paving projects). Motion was made by Commissioner Graf, seconded by
Commissioner Connery and unanimously carried to adopt the following resolution:

                                 RESOLUTION NO. 08-10

       WHEREAS, Contract No. 173 has in all things been completed, and the County Board
being fully advised in the premises,

        NOW, THEN BE IT RESOLVED, That we do hereby accept said completed project for
and in behalf of the County of Houston and authorize final payment as specified herein.

       File No. 12 -- Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to adopt a Policy on Commissioner Per Diems.

       Commissioner Graf reported on an MCIT meeting he attended last Friday.

        Chairperson Thompson reported on a meeting she attended regarding liability issues with
regard to medications for jail inmates.

       Commissioner Connery reported on a Semcac meeting he attended.

       Commissioner Connery reported on a StedFast meeting he attended. Mike Podulke from
Olmsted County was elected Chairperson, Marcia Ward from Winona County was elected Vice-
Chairperson, Julie Ohly from Olmsted County was elected Secretary, and Commissioner
Connery was elected as Treasurer. Charity Floen was named CEO. Also, he reported that
Houston County‟s share of the start up costs will amount to $278,843 and will be due March 1st.
He also expressed his concern that Gundersen Clinic has declined to be a part of our preferred
provider network.

       Commissioner Corcoran reported on union negotiations which he attended.


REGULAR SESSION                                                                   Page      21
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       Commissioner Connery reported that the Franciscan Skemp clinic in Houston will be
closing.

      Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to place on file the following items from the consent agenda:

                    File No. 13 -- Correspondence to Payroll regarding the hiring
          of Carrie Lapham as a Sheriff‟s Transport Driver.

                  File No. 14 -- Various letters regarding 2008 committee
          appointments.

                   File No. 15 -- Correspondence regarding the tons delivered to
          Xcel during December 2007.

                   File No. 16 -- Correspondence from Representative Tschumper
          regarding Section 8 housing.

                   File No. 17 -- E-mails from MHFA and from Fillmore County
          regarding the proposed caseworker-ombudsman position.

       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Connery and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, January 22, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                     Page   22
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, January 22, 2008                    9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Sheriff Ely; Emergency
                   Manager Kuhlers; Chief Deputy Sheriff Yeiter; Personnel Director
                   Comstock; PHN Director Rock; Reporters Warner, Gray & Stotts

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the January 15, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $63,384.23
              Road & Bridge Fund                                 32,278.12
                                                               --------------
              Total                                            $95,662.35
                                                               ========

       At this time Sheriff Ely and Emergency Manager Kuhlers met with the Board. Sheriff
Ely reported that Houston County currently has 13 inmates in our jail and 13 inmates housed out
of county.

        Sheriff Ely reported that since 2005 we have had approximately 10 instances where the
Caledonia Ambulance has transported inmates for medical purposes. The individuals have been
billed, when in fact, these expenses should have been billed to Houston County. Discussion was
held.

       File No. 2 -- Emergency Manager Kuhlers reported that one of the biggest issues during
the 2007 flood was notifying the general public as to what was going on. He has looked at three
emergency notification systems, being City Watch, Rapid Reach and Code Red. He is
recommending that the Board take action to acquire the Code Red System at a cost of
approximately $10,000 per year. This can be paid for with E911 funds. This system would
provide us with 30,000 minutes of notification time, and they have indicated that only 4% of
REGULAR SESSION                                                                   Page      23
.




their customers ever go over the 30,000 minutes. Also, in the event of a natural disaster, this cost
would be reimbursed through FEMA. He indicated that this system is user friendly and he
would be able to activate it anywhere as long as he has internet access. It could also be activated
by Dispatch. We could have up to five administrative accounts, so it could possibly be utilized
by the cities also. This system is like a reverse 911, whereby the public would receive a phone
call with a pre-recorded message notifying them of an emergency. It could be used to notify all
county residents, or a portion thereof. He recommended that the County adopt a policy which
indicates specifically what this can be used for. He has obtained a copy of the City of
Onalaska‟s policy in this regard. The question was raised as to whether the cities would be asked
to participate in the cost if they are going to utilize the system. Emergency Manager Kuhlers
recommended that, if we are using E911 funds to pay for this, we opt not to bill the cities
individually. He suggested that the County maintain control, and if the cities want to use it we
try to accommodate them as long as they follow our policy guidelines. After discussion, the
Board directed Mr. Kuhlers to obtain a copy of a policy from a Minnesota county that utilizes
this system, and also, to contact our local telephone companies regarding this system.

        File No. 3 -- At this time Personnel Director Comstock met with the Board and reported
on the comparable worth reviews done in 2007. The positions reviewed in 2008 were as follows:

       Job Title:                                          Current Rating:
       County Engineer                                        D62
       Engineering Supervisor                                 C43
       Maintenance Foreman                                    C41-2
       Engineering Assistant                                  C41-2
       Engineering Technician-Survey Crew Chief               C41-2
       Accountant                                             C41
       Engineering Technicians                                B24-2
       Maintenance Specialist (No materials provided)
       Sign Specialist (No materials provided)
       County Attorney                                        D63
       Assistant County Attorney                              C44
       Attorney Secretary                                     B22
       Veterans Service Officer                               C41
       Administrative Assistant-VSO/Environmental. Systems    B21
       Administrative Assistant-Environmental                 B21
       Director of Public Health                              D61
       Home Care Coordinator                                  C51
       PHN                                                    C42
       Health Educator                                        C42
       Financial Supervisor                                   C41
       WIC Coordinator                                        C41
       RN                                                     C41
       Home Health Aide                                       A12-2


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.




        Mr. Comstock reported that the consultant is recommending that all of the ratings remain
the same, with the exception of the Attorney Secretary position which is being increased from
B22 to B23. Mr. Comstock recommended that the Board take action to approve this change
effective retroactive to November 15, 2007, which is the date we were notified of the change.
Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to approve increasing the comparable worth rating for the position of
Attorney Secretary from B22 to B23 effective retroactive to November 15, 2007.

        Personnel Director Comstock reported that two interviews are scheduled for tomorrow
for the position of Case Aide in the Human Services Department. The application deadline for
the vacant Child Support position was on Friday, and he will be scheduling the Merit System test
in the near future. Also, interviews were held last week for the position of Assistant County
Attorney. He and County Attorney Jackson will be making a recommendation to the Board next
Tuesday.

       File No. 4 -- At this time PHN Director Rock met with the Board and requested approval
of contracts. Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the following contracts and to authorize the signature of
Chairperson Thompson:

                           Larry Smith
                           Dave Thiele
                           Fred Ross
                           Bryant Meyer
                           Robert Bray
                           Neighbors in Action

       PHN Director Rock stated that she is aware that the Board has placed a freeze on capital
expenditures for 90 days. She inquired whether she can purchase a laptop computer, utilizing the
Public Health Preparedness Grant, at a cost of approximately $900. This computer will be used
exclusively for the Public Health Preparedness Program. The Board indicated that the freeze
does not apply to grant funding, therefore, she can proceed with this purchase.

       Chairperson Thompson reported that she attended the annual EDA meeting. John Benton
was elected President of the EDA for 2008.

        Commissioner Graf reported that the ASCS building has been sold. It is his
understanding that the new owner is interested in allowing Extension to continue renting space in
the building. However, he suggested that a committee of the Board meet with the new owner in
this regard.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:


REGULAR SESSION                                                                     Page      25
.




                   File No. 5 -- A Public Notice that a County Board meeting will
          be held on Tuesday, January 29, 2008.

                    File No. 6 -- Correspondence to Pete Johnson thanking him for
          his years of service to Houston County.

                   File No. 7 -- Correspondence to SEMMCHRA forwarding a
          check for their administrative shortfall for the years 2004 through 2006
          and expressing the Board‟s concern in this regard.

                   File No. 8 -- Information from past County Board minutes
          regarding SEMMCHRA.

       There being no further business, motion was made by Commissioner Bjerke, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, February 5, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                      Page   26
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, January 29, 2008                      9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Ann Thompson, David Corcoran and Tom Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; PHN Director Rock;
                   Engineer Evans; Emergency Manager Kuhlers; Joyce Iverson;
                   Environmental Services Director Frank; Sheriff Ely; Earl Welch; Reporters
                   Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the January 22, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve payment of the following claims:

               County Revenue Fund                               $50,595.85
               Road & Bridge Fund                                  16,484.08
                                                                 --------------
               Total                                             $67,079.93
                                                                 ========

       File No. 2 -- At this time PHN Director Rock met with the Board and requested that they
take action to approve the ratified service agreement between ACS and MCCC for the
development of the PH-DOC 2012 program. She indicated that this is a six year agreement.
PHN Director Rock reported that in 2015 all health records will be required to be computerized.
After discussion, motion was made by Commissioner Graf, seconded by commissioner Corcoran
and unanimously carried to approve the Ratification Statement and to authorize the signature of
Chairperson Thompson.

        File No. 3 -- PHN Director Rock requested approval of a Purchase of Service Agreement
with Kris Billman, dba Children‟s Dental Health Services, to provide dental hygienist services.
She reported that a new practice came into play in 2005 whereby a hygienist can provide certain
services independent of a dentist, such as assessments, education, sealants, etc. The first dental
clinic with the hygienist was held last Friday. The restorative portion of the program is currently
not taking place. However, the department is trying to find dentists interested in taking kids
referred by Public Health. She indicated that MA reimburses dentists at approximately 30%, and
REGULAR SESSION                                                                       Page      27
.




they are looking into the possibility of utilizing grant funding to pay dentists an additional 30%
as an incentive to take these clients. After discussion, motion was made by Commissioner
Bjerke, seconded by Commissioner Graf and unanimously carried to approve the contract and to
authorize the signature of Chairperson Thompson.

        At this time Engineer Evans met with the Board. Engineer Evans reported that a few
years ago the federal government developed a Highway Safety Improvement Program, which is
funded to be proactive and reactive to highway safety issues. They are reacting to areas
identified as having a high number of crashes. MN DOT hired a consultant to look at the
number of crashes region-wide, statewide and in individual counties. He indicated that the study
showed a high number of crashes on County Road #249 on an area that is 1.2 miles in length
which has several “S” curves. They rate the severity of crashes as follows: The worst crash is
rated as fatal. The next highest is an “A” rating which means there was a serious injury. The
next level is a “B” rating. A “C” rating means a minor injury. A “D” rating means property
damage. Over the past ten years there have been five “A” rating crashes on this 1.2 mile stretch
of road. In addition, there have been two rear end crashes involving property damage, three
crashes involving property damage where a vehicle ran off the road, and one accident which he
thought involved hitting a deer. Engineer Evans stated that he is proposing to re-grade that 1.2
mile section of road in 2010. He would like to submit a federal grant application whereby the
federal government would pay 90% of this cost. He estimated the cost of re-grading at
$500,000. If we are awarded the grant, Houston County‟s portion of the re-grading costs would
amount to $50,000. He recommended paving this section of road the following year at county
cost, at an estimated cost of $200,000. He indicated that County Road #249 is not eligible for
state aid. Commissioner Bjerke inquired why he is not including the paving costs in the grant
application. Engineer Evans responded that there is a limited amount of money available, and he
felt our chances of being awarded the grant would be better this way. While we could submit a
grant application for the whole project, he thought this would all have to be spent in the same
year. He felt it was better to allow the road to settle during the winter and pave it the next year,
rather than re-grading and paving it all in one year. It was pointed out that the state normally re-
grades roads and paves them all in the same year. Engineer Evans responded that this is done
because of the volume of traffic on state highways. Also, he reported that, when the state builds
roads, they use a deeper sub-cut and replaces the upper 2 to 2 ½ feet with granular material that
is not as susceptible to frost. The County does not do this, as it adds additional cost to the
project. The Board expressed their concern regarding budget issues, and indicated that the
projects they put off this year because of budget concerns will catch up to them in the near
future. After discussion, motion was made by Commissioner Corcoran, seconded by
Commissioner Bjerke and unanimously carried to authorize Engineer Evans to apply for a grant
to cover the re-grading and the paving of 1.2 miles of County Road #249.

       File No. 4 -- At this time Joyce Iverson met with the Board and presented the proposed
Houston County Business Flood Recovery Loan Program Revolving Loan Fund Guidelines, as
amended by County Attorney Jackson. She also reported on the checklist for business flood
recovery applications as well as the title research requirements. She stated that Mortgage
Registry Tax must be charged on these loans. They are proposing that the Mortgage Registry

REGULAR SESSION                                                                        Page      28
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Tax and the cost of the title research be added to the forgivable part of the loan, over and above
the amount the loan is approved for. They are also proposing that if a loan is paid up after five
years, the forgivable portion will be forgiven at that time. Joyce reported that, once the
Guidelines are approved, she can submit a request to the state for 20% of the funds. After
discussion, motion was made by Commissioner Bjerke, seconded by Commissioner Corcoran
and unanimously carried to approve the Houston County Business Flood Recovery Loan
Program Revolving Loan Fund Guidelines.

        At this time Sheriff Ely and Emergency Manager Kuhlers met with the Board to discuss
the proposed emergency alert system. Mr. Kuhlers stated that the Board directed him to check
with other counties our size who have an emergency alert system to see what type of
policy/procedures they have in place for this system. He has only found two entities that have
policies, being the City of Onalaska and Walworth County, WI. He indicated that St. Paul has a
system, but no written policy. They use the system mainly for snow removal. Onalaska‟s policy
states that it is for specific emergency situations such as disasters, search and rescue, drinking
water contaminations, etc. Mr. Kuhlers stated that the Board also directed him to touch base
with the phone companies. There are three companies serving our county, and he has spoken
with each of them individually, and has connected them with the engineers from Code Red. The
engineers would come in and do a series of test calls to see what level of use each of the phone
systems can handle, so that they do not overwhelm any of the phone systems. Discussion was
held regarding the possibility of allowing the cities and/or school districts to utilize the system.
Mr. Kuhlers recommended getting the system up and running before deciding if we want to
branch out to other entities. After discussion, motion was made by Commissioner Corcoran,
seconded by Commissioner Bjerke and unanimously carried to approve acquiring an emergency
alert system utilizing E911 funds and to establish a committee consisting of the Sheriff, the
Emergency Manager, the Public Health Director, the County Highway Engineer and
Commissioner Bjerke. The Committee will make a recommendation to the Board as to which
vendor to purchase the system from. They will also be responsible for drafting a proposed policy
for the use of the emergency alert system for the Board‟s consideration.

        File No. 5 -- At this time Environmental Services Director Frank met with the Board and
presented the 2008 Application for the Agricultural Best Management Practices Loan Program
which is administered by the Department of Agriculture. Of the $440,000 available, he has
allocated $270,000 for feedlot improvements, $43,000 for structural erosion control, $77,000 for
upgrading non-conforming septic systems and $50,000 for the sealing of abandoned wells.
Chairperson Thompson inquired whether the money can be reallocated between these programs
if needed. Mr. Frank responded that this can be done. After discussion, motion was made by
Commissioner Corcoran, seconded by Commissioner Bjerke and unanimously carried to adopt
the following resolution:


                                   RESOLUTION NO. 08-11



REGULAR SESSION                                                                        Page      29
.




       WHEREAS, the Minnesota Department of Agriculture has made low interest loan funds
available to counties, Soil and Water Conservation Districts and Joint Powers Organizations
through the Agricultural Best Management Loan Program (Minn. Stat. 17.117); and

       WHEREAS, Houston County has identified a need for low interest loan funds to
encourage agricultural best management practices, repair of subsurface sewage treatment
systems, sealing of abandoned wells and implementation of other practices that prevent or
mitigate adverse environmental impacts; and

        WHEREAS, many agricultural best management practices, repair of sewage treatment
systems, sealing of abandoned wells and implementation of other best management practices are
identified in the Comprehensive Local Water Plan and other planning documents as priorities;

       NOW, THEREFORE, BE IT RESOLVED, that Houston County approves the
application, authorizes its submittal, and designates Richard Frank to be the authorized
representative, and hereby grants Richard Frank the authority to sign the application, loan
agreement and all other correspondence or documentation necessary to implement the AgBMP
Loan Program on behalf of Houston County; and

        BE IT RESOLVED that Richard Frank is the authorized representative for all
Agricultural Best Management Practices Loan Program agreements and is granted the authority
to sign all correspondence and documents to carry out these prior loan programs on behalf of
Houston County; and

       BE IT RESOLVED that all prior designations of the authorized representatives by
Houston County for the Agricultural Best Management Practices Loan Program is hereby
rescinded.

        File No. 6 -- At this time Personnel Director Comstock met with the Board. He reported
that on December 29, 2007 a representative of the State Auditor‟s Office discussed the 2006
audit and their concern that the disk being used for the County‟s direct deposit was not encrypted
and could be construed as a data privacy issue. The State Auditor‟s report indicated that the
County would pursue discussions with Merchants Bank to develop a system where this
information could be electronically transmitted through a secured website. Mr. Comstock
pointed out that the State Auditors were notified that this issue was resolved quite some time
ago, and he questioned why it was included in the final report. He stated that there has never
been an issue with the integrity or security of Merchants Bank‟s website or any of their online
banking programs. The staff of Merchants Bank in Caledonia have been great to work with and
very accommodating in developing a way for us to electronically transmit our specifically
formatted payroll data to them.

       Personnel Director Comstock requested that the Board take action to increase the full-
time equivalency of Case Aide Jana Halverson from 0.8 to full-time, due to increased workloads.


REGULAR SESSION                                                                      Page      30
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Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and unanimously
carried to approve the same.

        Personnel Director Comstock requested that the Board take action to hire Bonnie Felten
for the vacant Case Aide position in the Human Services Department, beginning at Step 2 of the
appropriate wage scale. Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve the same. Mr. Comstock stated that Ms. Felten‟s
first day of employment will be February 4, 2008.

       Personnel Director Comstock recommended approval of a leave of absence for Lee
Denstad, Maintenance Department, for up to 60 days. Motion was made by Commissioner Graf,
seconded by Commissioner Corcoran and unanimously carried to approve the same.

      File No. 7 -- Auditor Johnson reported on a Minnesota Lawful Gambling Application for
Exempt Permit on behalf of Hardwood Country Sportsmen Club for gambling activities to be
conducted at Ferndale Country Club in Yucatan Township. This has been approved by the
Township. Motion was made by Commissioner Corcoran, seconded by Commissioner Graf and
unanimously carried to adopt the following resolution:

                                  RESOLUTION NO. 08-12

       BE IT RESOLVED that the Houston County Board of Commissioners does hereby
approve the Minnesota Lawful Gambling Application for Exempt Permit on behalf of Hardwood
Country Sportsmen Club for gambling activities to be conducted at Ferndale Country Club in
Yucatan Township.

       Commissioner Corcoran updated the Board with regard to union negotiations.

       Commissioner Graf reported that he attended the La Crescent City Council meeting last
night. Also, he attended a NIMS training at the La Crescent Fire Department.

       File No. 8 -- Discussion was held regarding the Bluff Country HRA‟s request for a
$50,000 levy which would be matched by the Greater Minnesota Housing Fund. This is a one
time levy. Auditor Johnson reported that his office will begin tax calculation in the next few
weeks, therefore, the Board needs to make a decision on whether to approve this request. This
was included in the 2008 budget. After discussion, motion was made by Commissioner Bjerke,
seconded by Commissioner Graf and unanimously carried to approve the $50,000 levy for the
Bluff Country HRA.



        Chairperson Thompson reported that she and Commissioner Graf spoke with the new
owners of the former ASCS office building. They are interested in continuing to rent office
space to Extension. Also, the upper and lower floors will be advertised for rent. The upper floor

REGULAR SESSION                                                                     Page      31
.




will only be available for a couple of years. Chairperson Thompson inquired whether the Board
wanted to consider renting space in this building, due to the over-crowding in the courthouse.
After discussion, it was agreed to discuss this again at a later date.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 9 -- Correspondence from Briggs & Moran postponing
          two public hearings on proposed TIF Districts in La Crescent until
          February 11, 2008 at 5:30 p.m.

                   File No. 10 -- Correspondence from the EDA to MN DOT
          regarding trail access when the I-90 bridge at Dresbach is replaced.

                   File No. 11 -- A Law Library Inventory as of 1/21/08.

                   File No. 12 -- Correspondence from Attorney Scott Anderson
          to Caledonia City Attorney Murphy regarding the City‟s zoning
          proposals in conjunction with the CJC.

                 File No. 13 -- City of Caledonia EDA survey regarding
          downtown businesses.

       There being no further business, motion was made by Commissioner Bjerke, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, February 5, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                   Page     32
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, February 5, 2008                     9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Connery, Ann Thompson, David Corcoran and Tom Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Emergency Manager
                   Kuhlers; Personnel Director Comstock; Zoning Administrator Scanlan;
                   Charity Floen-StedFast Health Plan; Human Services Director Wilms;
                   Human Services Accountant Bahr; Bonnie Felten; Sheriff Ely; Chief Deputy
                   Sheriff Yeiter; E911 Coordinator Krzoska; Engineer Evans; County Attorney
                   Jackson; Reporters Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Corcoran and
unanimously carried to approve the minutes of the January 29, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

              County Revenue Fund                                $ 82,410.37
              Road & Bridge Fund                                   72,623.82
                                                                ---------------
              Total                                             $155,034.19
                                                                =========

        At this time Emergency Manager Kuhlers met with the Board and reported on the Debris
Removal Grant. As of December 31, 2007 they have processed 94 applications, of which 15 are
residential and 79 are agricultural. They have spent $396,825 of Houston County‟s allocation,
which leaves a little over $100,000 remaining. The deadline to file for assistance is March 31 st
and the grant expires June 30th. There are additional funds which four counties have not spent,
and this may become available to the counties that need more funding.

        File No. 2 -- Emergency Manager Kuhlers stated that he is attempting to set up an
Emergency Management Advisory Committee which would meet twice a year. A multi-
jurisdictional five-year exercise plan is due at the state by February 15, 2008. Mr. Kuhlers
indicated that he would like to have representation from the cities, schools, fire departments,
ambulance services, Environmental Services, Public Health, Sheriff‟s Department and the
Highway Department on the committee. Discussion was held.
REGULAR SESSION                                                                     Page      33
.




        File No. 3 -- Emergency Manager Kuhlers reported that a committee consisting of
himself, Kermit McRae, PHN Director Rock, Engineer Evans, Ralph Tuck, Environmental
Services Director Frank and E911 Coordinator Krzoska met and reviewed 6 proposals for
drafting Houston County‟s Hazardous Mitigation Plan. They narrowed this down to three firms,
being Bonestroo, SEH and Yaggy Colby. Engineer Evans, E911 Coordinator Krzoska and
Emergency Manager Kuhlers interviewed these three consultants. They are recommending
accepting the proposal of SEH in the amount of up to $85,000. Engineer Evans stated that SEH
has done work for MN DOT and other counties, and they have a good reputation and talented
staff. SEH drafted the mitigation plans for Cheyenne, WY and Superior, WI and they were very
nicely put together. Mr. Kuhlers indicated that SEH is proposing to do most of the leg-work
involved in the plan, and they can have it done in 12 months. The cost involved is funded 75%
by FEMA and 25% by the state, with no local match. Chairperson Thompson stated that their
proposal also includes maintenance for five years. She felt it was critical to have the plan
continually updated and modified as needed. After discussion, motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
accept the proposal of SEH for drafting Houston County‟s Hazard Mitigation Plan.

       Emergency Manager Kuhlers reported that a committee consisting of himself,
Commissioner Bjerke, Sheriff Ely and Deb Rock met yesterday regarding the emergency alert
system. They reviewed the three proposals, and are recommending accepting the proposal of
Code Red. The committee is scheduled to meet again on February 11th to discuss policies and
procedures. After discussion, motion was made by Commissioner Bjerke, seconded by
Commissioner Corcoran and unanimously carried to accept the proposal of Code Red for the
emergency alert system.

       File No. 4 -- At this time Personnel Director Comstock and County Attorney Jackson met
with the Board and recommended hiring Araysa Ashmore for the position of Assistant County
Attorney beginning at step 6 for the appropriate wage scale. Motion was made by Commissioner
Bjerke, seconded by Commissioner Connery and unanimously carried to approve the same. Ms.
Ashmore is expected to begin employment with Houston County in mid-March.

        Commissioner Connery indicated that there is a lot of in-house need for an attorney to
advise the Board and department heads on civil matters. He inquired whether one of the
attorneys in the County Attorney‟s Office could be designated to handle these matters. County
Attorney Jackson responded that he has this in mind, and it is his intention to break this down a
little more so that each attorney specializes in one area, such as land use, data practices, etc. He
hopes to make the civil workload a little more manageable with a faster turn-around time.
Commissioner Connery inquired about the possibility of time tracking for internal purposes, so
that we have a general idea how much time is spent on criminal caseloads, administrative issues,
etc. County Attorney Jackson responded that, while this would be good information to have, it
would be very difficult and time consuming to track. He indicated that his department does keep
track of the time spent on child support, as this is required for federal reimbursement. County
Attorney Jackson indicated that he will consider this possibility further.

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        File No. 5 -- Personnel Director Comstock presented information received from the AMC
entitled “County Property Tax Facts”.       Commissioner Bjerke stated that the revenue for
counties, cities and schools is declining, while the revenue per capita at the state level is up
7.1%. There are big shifts placing the burden of funding programs from the state level to the
local level, which makes it look like we are overspending while the state is making us balance
our budget through property tax. Discussion was held.

       File No. 6 -- At this time Zoning Administrator Scanlan met with the Board. On the
recommendation of the Planning Commission, motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to approve the issuance of the
following zoning permits:

             Eric and Leanne Benson - Winnebago Township - Build house (46‟ x 36‟)
             garage (32‟ x 32‟)

             Bill Johnston - Money Creek Township - Build pole shed (40‟ x 80‟)

             Edward Giblin - Mayville Township - Build grain bin (5000 b.u.)

             Joel Johnson - Money Creek Township - Build garage (18‟ x 30‟6”)

             Dennis Holte - Black Hammer Township - Remove existing porch and
             build new porch (12‟ x 24‟)

             Paul Scheil - Mound Prairie Township - Build shed (30‟ x 40‟)

             Travis Scheck - Mound Prairie Township - Build pole shed (30‟ x 40‟)

             Jim and Tom Welscher - Caledonia Township - Replace older portion of
             existing cattle barn (60‟ x 90‟)

             Mike McManimon - Yucatan Township - Install hoop barn (30‟ x 48‟)

        Mr. Scanlan indicated that he has been working with the townships over the last couple of
years obtaining their input for updating the Land Use Plan. He completed this process in
December, therefore, he felt it was time to have some public meetings. A public meeting was
held recently, and he indicated that it was difficult to keep on task. There were many individuals
in attendance who wanted to focus on their individual zoning issues. Mr. Scanlan stressed the
importance of the Land Use Plan, as this indicates what our Zoning Ordinance should regulate.
Another Land Use Planning meeting is scheduled for Thursday, February 21st, at 7:00 p.m. in
the Commissioners Room. Mr. Scanlan indicated that he is inviting the town boards to attend, as
well as representatives from the RRSWCD and the Feedlot Committee. He suggested that they
review the draft plan first, and then take comments at the end of the meeting.

REGULAR SESSION                                                                      Page      35
.




        Human Services Accountant Bahr introduced Bonnie Felten, the new Child Support Case
Aide.

       File No. 7 -- At this time Charity Floen, StedFast Health Plan, met with the Board and
requested that the Board take action to approve an Access Agreement between StedFast Health
Plan and Houston County to access the contracts that the Houston County Human Services and
Public Health Departments have in place, rather than having to contract with these vendors
individually. Motion was made by Commissioner Bjerke, seconded by Commissioner Corcoran
and unanimously carried to approve the Access Agreement and to authorize the signatures of
Chairperson Thompson and Auditor Johnson.

      File No. 8 -- Charity Floen requested that the Board take action to approve a Participation
Agreement between StedFast Health Plan and Houston County through its Human Services
Department. This agreement allows for payment of services that are currently MA billable.
Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke and
unanimously carried to approve the agreement and to authorize the signatures of Chairperson
Thompson and Auditor Johnson.

        Charity Floen reported that she had a conversation with a representative of Gundersen
Clinic yesterday, and they are interested in talking with us regarding becoming a provider. She
indicated that she needs to have Gundersen and Mayo on board before she can submit the plan.
She indicated that legislation will be introduced to allow StedFast single provider status.

       Charity Floen reported that on May 12th there will be a half-day session where Rochester
will be showcased for the legislature. StedFast will have a booth and will have handouts
available. Earlier that day they plan to meet with senators and representatives to let them know
what we are trying to do and to counter any concerns they may have.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Corcoran and
unanimously carried to place on file the following items from the consent agenda:

                      File No. 9 -- Correspondence to Payroll regarding the increase
           in full-time equivalency for Jana Halverson, the hiring of Bonnie Felten
           as a Case Aide and a leave of absence for Lee Denstad.

                     File No. 10 -- Correspondence from NRCS regarding a list of
           EWP Projects which have been approved, as well as a list of ineligible
           projects.

                    File No. 11 -- A Certification of Bridge Safety Inspection to the
           Commissioner of Transportation certifying the Annual Bridge Safety
           Inspections for 2007.


REGULAR SESSION                                                                         Page   36
.




                   File No. 12 -- A notice of a Caledonia City Public Hearing to
          consider an application submitted by Caledonia Tru Value.

                   File No. 13 -- A notice of a Caledonia City Public Hearing to
          consider an application submitted by Nick Gengler.

                   File No. 14 -- Correspondence from SMART asking the Board
          to name representatives to their represent our region on their committee.

       There being no further business, motion was made by Commissioner Connery, seconded
by Commissioner Corcoran and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, February 12, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                       Page   37
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, February 12, 2008                    9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Chief Deputy Sheriff
                   Yeiter; Joyce Iverson; Recorder Bauer; Highway Accountant Schroeder; IS
                   Manager Lapham; Reporters Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Corcoran and
unanimously carried to approve the minutes of the February 5, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

               County Revenue Fund                              $58,456.87
               Road & Bridge Fund                                 37,750.42
                                                                --------------
               Total                                            $96,207.29
                                                                ========

       File No. 2 -- Chairperson Thompson reported that Olmsted County serves as fiscal agent
for the Southeast Minnesota Water Resources Board. They are seeking proposals from its
member counties for the preparation of the 2007 financial statements in a format suitable for the
Board‟s annual audit by the Office of the State Auditor.

        File No. 3 -- At this time Chief Deputy Sheriff Yeiter met with the Board and presented a
proposed Joint Powers Agreement for the Southeast Minnesota Regional Radio Board. He
indicated that the Radio Board‟s sole function is to enhance or enable inter-operational radio
communication throughout the state. This is also the funding source for regional funding to do
studies to determine the cost and benefits of each option for radio service. He indicated that, if
we decide to go with VHF analog which we are on now, the Regional Radio Board will support
our decision and come up with ways to fund inter-operability so we can talk to all neighbors
irregardless of which communication system we choose to go with. The state will pay up to
$120,000 for communication studies in our region. We would have to match these funds, and
they are attempting to obtain these matching funds through Homeland Security. The studies are
REGULAR SESSION                                                                      Page      38
.




expected to cost between $25,000 and $30,000 per county. Tom Hannon, who helped put
together the south central radio board, will make a presentation to the County Board on February
26th.

       Chief Deputy Sheriff Yeiter reported that our jail is full at this time, and we have 17
inmates housed in other counties.

       File No. 4 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Bjerke and unanimously carried to adopt the following resolution:

                                  RESOLUTION NO. 08-13

       BE IT RESOLVED that the Houston County Board of Commissioners does hereby
approve the Minnesota Lawful Gambling Premises Permit Renewal Application on behalf of the
Caledonia Sno-Gophers for gambling activities to be conducted at Little Miami in Crooked
Creek Township.

       File No. 5 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Bjerke and unanimously carried to adopt the following resolution:

                                  RESOLUTION NO. 08-14

       BE IT RESOLVED that the Houston County Board of Commissioners does hereby
approve the Minnesota Lawful Gambling Premises Permit Renewal Application on behalf of the
Caledonia Sno-Gophers for gambling activities to be conducted at the Shellhorn Roadhouse,
Brownsville Township.

        At this time Joyce Iverson met with the Board. She reported that the deadline to allocate
Business Flood Recovery Loan Funds is June 1, 2008. The deadline to spend the funding is June
2009. She indicated that we may have excess funds, and the EDA had some discussion about the
possibility of utilizing some of these funds for business expansion/retention as there are several
businesses that would have to relocate if the business is to be retained. While the Business Flood
Recovery Loan Funds are 75% forgivable and 25% repayable, she felt that funds for
expansion/retention would be 100% repayable. Discussion was held regarding the requirement
to have all receipts submitted to the County within 180 days. It was felt that 180 days may not
be enough if new construction was involved. It was suggested that a provision be added to the
guidelines that, in the case of new construction, an extension can be approved by the County
Board.

       Joyce Iverson reported that the existing EDA Revolving Loan funds have to be kept
separate from the Business Flood Recovery Loan funds and the Flood Recovery Administrative
funds. She is working with county staff to set up the appropriate accounts.



REGULAR SESSION                                                                      Page      39
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        Joyce Iverson reported that there are fees associated with processing the Business Flood
Recovery loans for things such as the Abstractor‟s Check Certificate, recording, UCC filing,
mortgage recording, and Mortgage Registration Tax. She recommended adding up to $1,000 per
loan, to the amount of the loan, in order to cover these costs. 25% of these costs would be
repayable.

       File No. 6 -- Joyce reported on the proposed timeline for the loan approval process.
Recorder Bauer reported that she has a list of local attorneys who are willing to do title opinions
and/or draft documents if the County Attorney does not have time. After discussion, motion was
made by Commissioner Corcoran, seconded by Commissioner Bjerke and unanimously carried
to approve the timeline for the loan approval process.

        Motion was made by Commissioner Graf, seconded by Commissioner Connery and
unanimously carried to approve up to a maximum of $1,000 to be added to each loan to cover the
fees involved, and to add up to $1,000 to the loans which have already been approved by the
County Board.

       File No. 7 -- Motion was made by Commissioner Bjerke, seconded by Commissioner
Graf and unanimously carried to approve the loan document templates as presented.

        Discussion was held regarding the vacancy in the position of County Auditor, as per the
upcoming retirement of Auditor Johnson. Chairperson Thompson reported that she has
scheduled Jim Mulder, Executive Director of the Association of Minnesota Counties, to make a
presentation to the Board at 11:30 a.m. on Tuesday, February 26, 2008, on possibilities/options
for the Auditor‟s position. She asked that anyone interested in contributing to the discussion
attend that meeting. It was felt that Treasurer Petersen and Human Services Accountant Bahr
should be invited to attend in addition to those present today. Commissioner Connery requested
that the Board be provided with copies of job descriptions for the positions in the Auditor‟s and
Treasurer‟s Offices. He also asked that Auditor Johnson explain the delegation of duties in his
department.

       File No. 8 -- Chairperson Thompson presented a job description for the position of
Finance Director in Dodge County as an example. She reported that most counties that have
combined the offices of Auditor and Treasurer have either a Coordinator, Administrator or
Finance Director.

        Commissioner Connery reported on a county trails meeting he attended last week. They
are looking at making the group known locally and building community support.

       Chairperson Thompson reported on a water plan meeting held last week. They are
meeting monthly, and each month a different department will make a presentation.

      Commissioner Graf reported on an MCIT meeting he attended last Friday. The highest
number of claims seem to be in the areas of zoning and law enforcement.

REGULAR SESSION                                                                       Page      40
.




       Commissioner Graf reported that he attended the La Crescent City Council meeting last
night. They approved two TIF districts, one for Gundersen and one for business office space.

       Commissioner Bjerke reported on an EDA meeting which he attended last week.

         Commissioner Bjerke reported on a meeting he attended regarding drafting a policy in
connection with the Code Red system. They intend to have the County Attorney review the
liability section of the policy. Discussion was also held regarding having people register on-line
to receive notification on cell phones.

       Commissioner Graf reported that he attended a StedFast meeting in St. Paul with DHS.

       Chairperson Thompson reported on a meeting held with Dr. Michelle Rein, Medical
Director for the Joint Board of Health, regarding jail health and medications.

        File No. 9 -- Commissioner Connery reported that Congressman Walz recently hosted a
telephone conference with local officials to discuss the appropriations process, the deadlines
involved for submitting project requests to Congress, and the opportunities and challenges the
appropriations process presents to local and municipal governments that are seeking federal
funding. Commissioner Connery indicated that he is in support of requesting an appropriation
for a hydraulic study of the lower Root River Valley from Mound Prairie to the mouth of the
Mississippi River. This area has experienced numerous floods since the mid-1990‟s and the
problem cannot be corrected without a hydraulic study. The U.S. Fish and Wildlife Service has
tried to get this project funded for the past three to four years, with no success. The cost of the
study is estimated at $125,000. Chairperson Thompson indicated that the flooding in this area
affects trails. Commissioner Connery added that there are landowners wanting rip rap and levies
to deal with the flooding problems. After discussion, motion was made by Commissioner
Connery, seconded by Commissioner Corcoran and unanimously carried to adopt the following
resolution:

                                   RESOLUTION NO. 08-15

      WHEREAS, the lower Root River Valley has experienced numerous floods since the
mid-1990‟s; and

       WHEREAS, much of the lower Root River is diked, almost to the confluence with the
Mississippi River; and

       WHEREAS, this dike system was again breached or overtopped in numerous locations
during the August 2007 flood, resulting in sediment and debris being deposited on private land
and the Upper Mississippi River National Wildlife and Fish Refuge; and



REGULAR SESSION                                                                       Page      41
.




        WHEREAS, after flooding in 2001, the U.S. Fish and Wildlife Service transferred funds
to the U.S. Army Corps of Engineers to collate and summarize hydraulic modeling information
from highway projects and other studies and this process was completed; and

       WHEREAS, preliminary alternative management schemes were developed to manage the
lower Root River, but additional study is needed; and

       WHEREAS, the groundwork has been set for the next phase as a result of the earlier
work; and

       WHEREAS, the U.S. Army Corps of Engineers would do the work, with potential
partners including local units of government, the Root River Trails Group, the MN DNR, the
Nature Conservancy, MN Waterfowl Association, Ducks Unlimited, Inc., and others;

      NOW, THEREFORE, BE IT RESOLVED that the Houston County Board of
Commissioners hereby requests and supports an appropriation in the amount of $125,000 for a
Hydraulic Study of the Lower Root River Valley.

       File No. 10 -- Discussion was held regarding the 2008 Legislative Conference scheduled
for April 9 - 10, 2008 in St. Paul.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 11 -- Correspondence to Payroll regarding the hiring
          of Araysa Ashmore as Assistant County Attorney.

                   File No. 12 -- The Auditor‟s Statement to the County Board as
          of 12/31/2007.

                   File No. 13 -- A report of tons delivered to Xcel during January
          2008.

                   File No. 14 -- A Sentence to Service Quarterly Report for the
          4th Quarter 2007 received from the MN Department of Corrections.

                 File No. 15 -- A news release from Representative Ken
          Tschumper.

                  File No. 16 -- SEMMCHRA information received from
          Representative Ken Tschumper.




REGULAR SESSION                                                                       Page   42
.




       There being no further business, motion was made by Commissioner Connery, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, February 19, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                              Page     43
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, February 19, 2008                     9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:     Auditor Johnson; Chief Deputy Auditor Meiners; PHN Director Rock;
                    Emergency Manager Kuhlers; Maintenance Foreman Molling;
                    Environmental Services Director Frank; Jim Mulder-Executive Director of
                    the AMC; IS Manager Lapham; Highway Accountant Schroeder; Human
                    Services Accountant Bahr; Treasurer Petersen; Recorder Bauer; Personnel
                    Director Comstock; County Attorney Jackson; Reporters Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to approve the minutes of the February 12, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

               County Revenue Fund                               $112,223.68
               Road & Bridge Fund                                   25,202.06
                                                                 ---------------
               Total                                             $137,425.74
                                                                 =========

       File No. 2 -- PHN Director Rock requested approval of a chore service contract with John
Ingvalson dba Ingvalson Construction and Snow Removal for the period February 1, 2008
through September 30, 2008. Motion was made by Commissioner Bjerke, seconded by
Commissioner Graf and unanimously carried to approve said contract and to authorize the
signatures of the Board Chairperson and County Auditor.

       At this time Maintenance Foreman Molling met with the Board and requested
authorization to advertise for bids for maintenance rock, crack filling, seal coating and chloride.
Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to approve the same.



REGULAR SESSION                                                                       Page      44
.




      Commissioner Bjerke inquired how we are doing on our salt supply.              Maintenance
Foreman Molling responded that he thinks we have a sufficient supply.

        Maintenance Foreman Molling expressed his concern regarding citizens who are
intentionally blowing snow onto the county roads.

        File No. 3 -- At this time Emergency Management Director Kuhlers met with the Board
to review the proposed Code Red Policy. Chairperson Thompson inquired about people
registering to have their cell phones included on the list of numbers to call. Mr. Kuhlers
indicated that he has drafted a press release to give citizens the website where they can register
these phone numbers. Commissioner Graf inquired how often the County will ask the public to
update this list. Mr. Kuhlers indicated that we get a number of test minutes each year, and this
may be a good way to determine whether updates are needed. Landlines should be automatically
updated if they are in the 911 data system. Eventually we will also be able to register e-mail
addresses. Motion was made by Commissioner Corcoran, seconded by Commissioner Graf and
unanimously carried to approve the Code Red Policy and to authorize the signature of
Chairperson Thompson.

       Mr. Kuhlers expressed his concern regarding the amount of snow we have on the ground
and the possibility of flooding if there is a quick thaw and heavy spring rains.

      Commissioner Connery inquired whether all FEMA claims run through the Emergency
Management Department. Mr. Kuhlers responded that each department handles their own
FEMA claims. He does receive notice of all FEMA funds received from the Treasurer‟s Office.
He expressed his concern that we are receiving lump sums that are not itemized, therefore,
payments are difficult to track.

        Commissioner Connery reported that this Friday a meeting will be held with Gundersen
Clinic regarding the possibility of them becoming a provider for StedFast. They want to have
representatives from Houston, Winona and Fillmore Counties in attendance as well as several
members of the StedFast staff. He indicated that, if anyone knows someone at Gundersen Clinic
who could lobby for us, it would be greatly appreciated.

        File No. 4 -- At this time Environmental Services Director Frank met with the Board to
review the drop-site reports for the year ended December 31, 2007. Mr. Frank reported that the
drop-site program was started in the early 1990‟s as a cooperative effort between the County, the
townships and cities. It was agreed at that time that the County would cover the cost of labor, and
the townships and cities would be charged fees to cover the cost of operations and disposal. The
fee was adjusted in 1995 when we started collecting e-waste, as this is very costly. Mr. Frank
indicated that, without counting the increase in waste collected due to the August flood, he felt
we are still operating at a break even level. We have not yet received reimbursement from
FEMA for all of our costs incurred due to the flood.



REGULAR SESSION                                                                       Page      45
.




       Mr. Frank reported that the fluorescent bulb program is scheduled for April 5th at all of
the drop-sites. He indicated that the small “curly type” bulbs have to be recycled as they contain
mercury. They will be collected as a part of this program.

         Mr. Frank reported that he is working on the HHW contract with Winona and the State of
MN. The state reimburses us with a stipend which covers only a small portion of the program.
Last year we worked with La Crosse County and utilized their mobile unit for the program. He
indicated that this worked great. We do not have that option with Winona County, as they do not
have a mobile unit. Mr. Frank stated that he felt working with La Crosse County makes sense, as
a large portion of our population is located in close proximity with the La Crosse facility. Mr.
Frank indicated that the State of Minnesota insisted that our contract contain language indicating
that any liability involved with utilizing La Crosse County‟s HHW Program is Houston County‟s
liability. Mr. Frank stated that he felt our liability in this regard is minimal. Also, he indicated
that he has discussed with Public Health and the Sheriff‟s Department the possibility of
expanding the HHW Program to include pharmaceuticals. The County Attorney, in reviewing
the proposed contract, raised the concern of liability. A copy of the proposed contract has been
sent to MCIT for their review. Mr. Frank has also called La Crosse County and asked for their
input with regard to the liability concern.

       File No. 5 -- Auditor Johnson reported on a letter of understanding received from the
State Auditor‟s Office in connection with the audit for the year ended December 31, 2007.
Motion was made by Commissioner Connery, seconded by Commissioner Corcoran and
unanimously carried to approve the contract and to authorize the signatures of Chairperson
Thompson and Auditor Johnson.

       File No. 6 -- Auditor Johnson reported on an Application for Abatement on behalf of
Anthony and Deborah Schulte, for parcel #26-0360-000, in the amount of $60.00 for taxes
payable 2007. Motion was made by Commissioner Bjerke, seconded by Commissioner Connery
and unanimously carried to approve said abatement.

    Auditor Johnson reported that next week he will request approval of a contract between
MCCC and ACS for tax programming beginning in 2009.

        Auditor Johnson reported that a Wildcat Park Committee meeting is scheduled for this
afternoon at 2:00 p.m. They are in the process of reviewing the rules and regulations with
Sheriff Ely and Chief Deputy Yeiter.

        Commissioner Graf reported on an Extension Committee meeting held last Thursday
evening. The meeting room in the building where Extension is located currently has no
furniture, as this belonged to FSA. Therefore, they are looking into purchasing furniture for this
room. Chairperson Thompson stated that the Board is supposed to inform the new owners of the
building whether we are interested in renting additional office space. After discussion, it was
agreed to have the Auditor‟s Office e-mail all department heads in this regard. Any department


REGULAR SESSION                                                                        Page      46
.




head interested in utilizing office space in this building should contact Chairperson Thompson by
next Monday.

       Commissioner Connery reported on a joint meeting held with the unions regarding health
insurance.

       Chairperson Thompson reported that she and Commissioner Graf met with two
Caledonia City Council members last night regarding the CJC. They indicated that they will re-
write part of their zoning ordinance and get this to us by next Monday.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to recess the meeting until 11:30 a.m.

        The Board reconvened at 11:25 a.m. to meet with Jim Mulder, Executive Director of the
Association of Minnesota Counties, to discuss the vacancy in the position of County Auditor and
the options involved.

        File No. 7 -- Mr. Mulder gave a power point presentation regarding the history of county
government, current trends and options. He indicated that 50 or 51 counties have combined the
offices of auditor and treasurer. Combining these offices can be done by County Board
resolution and is not subject to referendum. Whereas the majority of county offices were at one
time elected, many of these positions are moving toward being appointed, with the exception of
the sheriff and county attorney positions. He recommended that, if the Board wants to change
some of their elected offices to appointed positions, they talk to their legislators regarding
adopting special legislation. While a County Board can adopt a resolution to change elected
offices to appointed positions, without legislation this is subject to a referendum. He
recommended that the Board work with the cities, townships and citizens groups, as well as with
incumbents. The County Board can also ask the District Court to create a study commission,
however, their recommendation is also subject to referendum.

       Discussion was held regarding finance departments.            Mr. Mulder indicated that
investments and financial duties are taking up a larger amount of county official‟s time.

        Personnel Director Comstock inquired whether any counties that created a finance
department used a consulting firm to review the current practices and make recommendations
where efficiencies can be gained. Mr. Mulder responded that this has not been done for the last
ten years or so. Most of the counties that moved in this direction used the model that came from
earlier studies. Also, he indicated that hiring a consulting firm is very expensive. Mr. Mulder
recommended that the Board figure out what the functions will be in each department, and then
draft job descriptions based on those functions. He estimated that it usually takes three to five
years to make the transition.

      Recorder Bauer inquired whether offices that are combined are put together physically.
Mr. Mulder responded that this depends on the availability of space.

REGULAR SESSION                                                                     Page      47
.




       Commissioner Connery inquired as to the possibility of combining land records
departments. Mr. Mulder responded that this would involve one department head with division
managers. This system allows support staff to help out with a broader range of functions.

        Mr. Mulder suggested that the Board involve staff in planning for future change. He
recommended taking advantage of the opportunity to make changes when an elected official is
retiring.

       Mr. Mulder stated that the AMC offers a program called Vision Web which is a
simulation program activity that teaches the importance of communication and shared vision.

        Mr. Mulder stated that the County Board is allowed to appoint an Interim Auditor. If this
is done, this individual assumes the authority and signature rights of the County Auditor, but
does not have incumbency. If the Board appoints a County Auditor, they assume elected rights
and incumbency. The Board also has the option of appointing an Interim Auditor, and changing
the appointment at a later date to County Auditor. Mr. Mulder stressed the importance to making
changes to elected positions prior to the opening of the filing period. Once the filing period for
elected officials begins, changes to the offices cannot be made.

        Commissioner Corcoran inquired whether the duties to the County Auditor can be
divided between more than one individual. Mr. Mulder responded that this depends on where
the responsibilities are found in the statutes. Statutory duties cannot be removed from a position.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to place on file the following items from the consent agenda:

                      File No. 8 -- Correspondence from the Southern Minnesota
           Initiative Fund thanking Houston County for their 2008 appropriation.

                    File No. 9 -- Information regarding StedFast Healthplan.




REGULAR SESSION                                                                       Page      48
.




       There being no further business, motion was made by Commissioner Connery, seconded
by Commissioner Corcoran and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, February 26, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                 Page     49
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, February 26, 2008                   9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Engineer Evans; Sheriff
                   Ely; Tom Hannon; Attorney William Von Arx; Personnel Director
                   Comstock; Emergency Manager Kuhlers; Court Administrator Kuhlers; Jail
                   Administrator Schiltz; Reporters Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the February 19, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $36,424.10
              Road & Bridge Fund                                 21,660.23
                                                               --------------
              Total                                            $58,084.33
                                                               ========

       File No. 2 -- At this time Engineer Evans met with the Board and requested approval of a
Joint Bridge Construction Agreement between Houston County, Minnesota and Winneshiek
County, Iowa. Due to the condition of the bridge, they plan to replace it during the upcoming
construction season. Plans have been drafted and a plat is almost ready for approval. Houston
County staff have been working closely with the Winneshiek County Engineer and Surveyor.
Houston County will be responsible for half of the construction and engineering costs, and these
will be paid from our township bridge account. After discussion, motion was made by
Commissioner Bjerke, seconded by Commissioner Graf and unanimously carried to approve the
agreement and to authorize the signatures of Chairperson Thompson and Auditor Johnson.

       Personnel Director Comstock requested authorization to increase the FTE for Assistant
Surveyor Tammy Mauss from 0.9 to full time for the 2008 construction season. Motion was
made by Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried
to approve the same.
REGULAR SESSION                                                                    Page      50
.




        File No. 3 -- Emergency Manager Kuhlers presented information regarding the FEMA
eligible costs statewide, by county and by jurisdiction within Houston County.

        File No. 4 -- Sheriff Ely introduced Tom Hannon. Mr. Hannon stated that he has been
retained by the State-Wide Radio Board to assist local units of government in connection with
their plans for inter-operative communications. They have a board consisting of 21 members, 7
of which are commissioners and 14 are local government representatives. Of the 14 local
government representatives, 7 are from the metro area and 7 are from greater Minnesota. He felt
this was a truly representative board that takes into consideration the needs and concerns of local
governments. The first step locally was the creation of a Regional Advisory Committee
consisting of appointed staff members with a policy, administrative or technical background.
They have created a proposed Joint Powers Agreement and there are 11 counties and the City of
Rochester that are eligible for automatic membership. Additional entities can apply for
membership.       The Joint Powers Agreement provides that each county appoints one
commissioner to serve on the board. They can also appoint one alternate.

       The Joint Powers Agreement also provides for three categories of expenses, being
administrative, operational and capital. Administrative expenses consist of the costs to run the
board, being things such as insurance, costs of taking minutes and complying with open meeting
laws, etc. Operational expenses are directly related to the operation of any infrastructure the
board would build. Capital expenses are directly related to building the infrastructure. Mr.
Hannon indicated that there has been discussion at the state level regarding providing grant
money for operational expenses for the first year or two. Administrative budgets need to be
approved in June of each year, while operational and capital budgets must be approved by
December 31st.

       Mr. Hannon reported that the state developed the standard that says they will build a
radio system to provide an average of 95% coverage for mobile radios across Minnesota. A
concern was expressed that out-state areas may only have 80% or 85% coverage. The standard
was subsequently changed to guarantee 95% coverage on a county by county basis. Due to this
change, over 50 towers had to be added. In many cases, the coverage will be better than the
coverage that exists today.

     Mr. Hannon reported that the Board has three committees, being the Regional Advisory
Committee, the Regional User Committee and the Regional Owners and Operators Committee.

       Emergency Manager Kuhlers reported that Emergency Managers voted on Friday to
provide $95,000 from their grant to do the feasibility studies and to work with them on what
communication system best benefits our region. They have an additional $100,000 that could be
made available, however, they first want to see actual costs. Sheriff Ely reported that, of the 11
counties and 1 city on board, 8 counties need inter-operability studies done to determine what
system works best for them. The cost per study is estimated to be between $25,000 and $30,000.
The state will match half of the cost if we can come up with $120,000.

REGULAR SESSION                                                                       Page      51
.




       Sheriff Ely stated that the deadline for having the new communications system
implemented is 2013. He indicated that funding will be made available to the regional boards
and then divided up among the members. If we are not a member of the regional board, we will
receive no funding. Also, we can opt out of the regional board at any time.

        Mr. Hannon stated that a huge issue affecting out-state Minnesota is equity and making
sure that out-state is treated the same as the metro areas. He felt it was imperative to obtain good
information for the legislature to use in making good business decisions. He indicated that the
legislature asked for the study so they would know what it would cost to extend to the rest of the
state what they have made available to some areas for communications. The study will also
assist counties in choosing the appropriate technology, and give them information on the cost
involved in the various systems available.

        The Board indicated that they are in favor of the joint powers agreement, however, they
decided to table approval of the same until next Tuesday to allow County Attorney Jackson time
to review it.

        Chairperson Thompson stated that a memo was sent to department heads inquiring
whether there was any interest in renting office space in the former ASCS building. No one has
expressed an interest. Therefore, she asked the Auditor‟s Office to draft a letter to the owners of
the building stating that the County will continue renting space for the Extension Office, but that
we will not rent any additional space in that building at this time.

      Commissioner Connery reported that the option to purchase 22 acres of land for the
Highway Department expires on March 8th. He suggested that this be discussed with the CJC
Committee and our attorney to determine where we should go from here.

        File No. 5 -- Auditor Johnson requested that the Board take action to ratify the agreement
between MCCC and ACS for the property tax system software and programming. The current
contract expires at the end of 2008. There will be 17 or 18 counties still using the ACS system
after 2008. The agreement has been reviewed by the Ramsey County Attorney and by County
Attorney Jackson. After discussion, and on the recommendation of Auditor Johnson, motion was
made by Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried
to approve the agreement and to authorize the signature of Chairperson Thompson.

        At this time Court Administrator Kuhlers met with the Board to report on the state budget
shortfall and the impact this will have on her department. She reported that the Third Judicial
District is made up of 11 counties and they have a budget shortfall of close to $1 million. 15%
needs to be cut from the personnel budget, which amounts to 20 to 23 full-time staff in the
Judicial District. In addition, staff are being asked to take 10 days off without pay.

      Court Administrator Kuhlers stated that, starting March 4th, the Houston County Court
Administrator‟s Office will offer no counter or phone service from 8:00 a.m. to 12:30 p.m. on

REGULAR SESSION                                                                        Page      52
.




Tuesdays. They will continue to hold court on Tuesday mornings. She indicated that each
county was asked to choose the day that would be least disruptive to their schedule. If the
financial picture gets worse, she indicated that the office may be closed additional hours.
Chairperson Thompson inquired how this will save money if staff is working, but not providing
counter and phone service. Court Administrator Kuhlers responded that it will allow reduced
staff to be more productive as they will be working uninterrupted.

        Court Administrator Kuhlers indicated that the state offered an early retirement incentive,
and one individual in her office, who works half-time, elected to do that. There have been other
positions cut due to general attrition. In addition, there is an order to lay off six people district
wide. By April 1st they should know which counties will have layoffs. The number of law
clerks is also being reduced.

       It was pointed out that Court Administrator offices became state funded on July 1, 2004.
Court Administrator Kuhlers felt that the financial picture does not look good for fiscal year
2009, nor for the next biennium being 2010 and 2011.

        Court Administrator Kuhlers stated that, even if her department does not lose another
employee, there will be a sharp reduction in services provided because at least two of her staff
will be doing work for other counties. Emergency and crisis cases will take priority. She
indicated that not providing counter or phone service will affect the services they provide for
Human Services and law enforcement. This district implemented Work Flow Standards, which
have recently been revised. In the past, a new case was filed in 1 to 2 weeks, and this is being
changed to 45 to 60 days. With regard to requests for information, in the past they tried to
provide same day service, or at a minimum, service within a week. Now it is expected that it
will take up to a month for things such as a certified copy of a divorce decree. Also, effective
May 1, 2008 the jury cycle will change from 2 months of service to 4 months of service.
Conciliation Court is now held once a month, and she estimated that this will be cut back to
every other month or quarterly. With regard to tickets, if they contain a mistake or are difficult
to read, they will be returned to the officer for correction. If her office does not receive them
back, they will be dismissed. Her department will also discontinue services such as making
copies of tickets for prosecutors. These will now have to be obtained from the officer. There is
a big change for the public with regard to tickets or money they owe in that second notices will
not be mailed out. These cases will go directly to driver license suspension, to a collection
agency or to a bench warrant. The collection agency tacks on 14 ½% to what is owed on
delinquent accounts. Staff has discontinued attending out-of-county training. They will no
longer be mailing things to attorneys that are not statutorily required. Instead, they will have
boxes where attorneys can pick things up. Court Administrators and Judges will no longer be
allowed to perform wedding ceremonies during business hours. She is working with Ace
Telephone to implement an automated telephone system. Also, she would like permission to
post a notice on the doors stating that the Court Administrator‟s Office will be closed on Tuesday
mornings.



REGULAR SESSION                                                                         Page      53
.




        Commissioner Connery expressed his concern that this will drag out court cases and
result in inmates being incarcerated in our jail for longer periods of time. Sheriff Ely expressed
his concern that his staff has to transport prisoners from 4 or 5 hours away to attend 5 minute
court hearings.

       Court Administrator Kuhlers expressed her appreciation to Law Enforcement and to
county staff who have voiced their willingness to work together and help out as much as
possible.

       Discussion was held regarding court security, since Emergency Manager/Court Security
Officer Kuhlers has been working primarily on flood related issues since August. Court
Administrator Kuhlers expressed her concern regarding moving 5 social workers into the former
Victim Services Office, due lack of privacy and congestion in the area with jurors and social
services clients.

     After discussion, it was agreed to schedule a CJC Committee meeting for 8:00 a.m. on
Wednesday, March 5th, in the Commissioners Room.

       Sheriff Ely reported that cities are allowed to adopt an ordinance to implement local
fines. Some counties have done the same. However, the state is planning legislation to buckle
down on this, as it results in a huge amount of lost income for the state.

       Per the request of Fillmore County, it was agreed to schedule a Joint Board of Health
meeting for 1:00 p.m. on Tuesday, March 11, 2008, at Temptations Restaurant in Spring Grove.

       Commissioner Connery reported on a StedFast meeting with Gundersen Clinic last
Friday. They are considering our proposal, however, it has to be approved by their strategic
planning committee.

       Chairperson Thompson reported on a meeting she attended last week regarding updating
the Zoning Ordinance. She felt that utilizing a facilitator might help them get more done in
terms of long range planning.

      Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                     File No. 6 -- Memo to Department Heads regarding the
           availability of office space in the former ASCS Building.

                   File No. 7 -- Correspondence to Anthony and Deborah Schulte
           approving their application for abatement.

                    File No. 8 -- A Caledonia Township Newsletter.


REGULAR SESSION                                                                      Page      54
.




                   File No. 9 -- A Letter to the Editor from the County Board
          regarding the CJC.

                   File No. 10 -- A notice of a Caledonia Business Appreciation
          scheduled for Thursday, March 6, 2008 at the Four Seasons Community
          Center.

       There being no further business, motion was made by Commissioner Connery, seconded
by Commissioner Corcoran and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, March 4, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                   Page   55
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, March 4, 2008                     9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Engineer Evans; Personnel
                   Director Comstock; County Attorney Jackson; Recorder Bauer; County
                   Attorney Jackson; PHN Director Rock; Health Educator Myhre; Reporters
                   Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Connery and
unanimously carried to approve the minutes of the February 26, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

              County Revenue Fund                            $ 36,692.38
              Road & Bridge Fund                                70,309.18
                                                             ---------------
              Total                                          $107,001.56
                                                             =========

       File No. 2 -- At this time Engineer Evans met with the Board. He reported that the
purchase agreement on 22 acres of land for building a new Highway Department expires by
amendment to the original agreement on March 8th. He requested authorization to renew the
purchase agreement for another 90 days. Motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to approve the same.

       File No. 3 -- Engineer Evans requested that the Board adopt a resolution requesting a
speed zone study on a newly constructed section of CSAH#6. Motion was made by
Commissioner Graf, seconded by Commissioner Corcoran and unanimously carried to adopt the
following resolution:



                                RESOLUTION NO. 08-16
REGULAR SESSION                                                                 Page     56
.




                      Request for Speed Zone Study on CSAH 6
       BE IT RESOLVED that the County of Houston Board of Commissioners requests the
Minnesota Commissioner of Transportation conduct a speed zone study on CSAH 6 from TH
61/16 (008+00.656) to 5th St. South (008+00.240), for the purpose of identifying the safe and
prudent legal speed.

        Discussion was held regarding the transportation bill which was adopted by the
legislature. Engineer Evans reported that there were quite a few items included in the bill. The
gas tax will increase by 2 cents effective April 1st and an additional 3 cents on October 1st. This
revenue will be used for normal projects. Over the next 5 years 3 ½ cents will be added
incrementally for the payment of trunk highway debts. The total gas tax increase after 5 years
will be 8 ½ cents per gallon. The transportation bill also provides an allowance for metro
counties to implement up to an additional ¼% sales tax to be used toward transit. There is also
an allowance for counties outside the metro area to add up to an additional ½% sales tax, if
approved by the voters, which must be earmarked for specific transportation projects. The
transportation bill also included $50 million bond money to be used for local bridge projects.
This funding will be available on a first come, first served basis. Engineer Evans indicated that
Houston County has approximately 15 bridge projects in the works and will be going after this
funding.

        File No. 4 -- At this time Personnel Director Comstock met with the Board and presented
a notice that Court Services Officer Siebold will be retiring on April 25, 2008. Motion was made
by Commissioner Bjerke, seconded by Commissioner Graf and unanimously carried to approve
the resignation and to draft a letter thanking him for his years of service.

       File No. 5 -- Mr. Comstock stated that he and Judge Fabian have discussed the options
available to Houston County on how to handle the vacancy created by Kevin Siebold‟s
retirement. There are three options available for probation services: 1) Community Corrections
Act (CCA) - any Minnesota County, or group of contiguous counties with a population
exceeding 30,000 may enter into this system; 2) County Probation Officers system whereby
probation officers work at the pleasure of the county‟s Chief Judge; 3) MN DOC system
whereby the DOC provides probation officers and supervision. Houston County is currently
under the County Probation Officers system. However, Judge Fabian and Personnel Director
Comstock have discussed the possibility of contracting with the MN DOC for services. A
representative of the MN DOC is scheduled to make a presentation to the Board regarding this
option on March 18th.

       Personnel Director Comstock reported that interviews were held for the vacant position
of Child Support Officer and he recommended that the Board take action to hire Michelle
Massman beginning at Step 2 of the wage range for this position. Motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to approve the
same.

REGULAR SESSION                                                                       Page      57
.




       Personnel Director Comstock stated that the county is currently utilizing direct deposit
for payroll purposes, however, we are still cutting checks for employee expense reimbursement.
He requested that the Board take action to reimburse employee expenses by direct deposit.
Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to approve the same.

        Personnel Director Comstock reported that he received an invitation from Representative
Steve Drazkowski‟s office to a one hour meeting in St. Paul on March 28th regarding the
possibility of a regional jail. It was agreed that Mr. Comstock will ask whether Chairperson
Thompson could participate in the meeting by telephone.

        Personnel Director Comstock presented the Board with copies of a draft Wildcat Park
Ordinance. It was agreed that the Board will review the same and discuss it further next week.
A public hearing will have to be held prior to adopting the ordinance. Discussion was held
regarding the need for an ordinance governing Botcher Park. It was agreed that Mr. Comstock
will draft a proposed ordinance for Botcher Park so that both ordinances can be considered at the
same public hearing.

      Personnel Director Comstock reported that interviews will be held for Wildcat Park
Manager next Tuesday beginning at 11:30 a.m.

       At this time County Attorney Jackson met with the Board. He requested authorization to
purchase computer equipment, software and a printer for a cost of $1,900 for the new Assistant
County Attorney who will be starting employment later this month. It was the consensus of the
Board to approve said purchases.

        File No. 6 -- County Attorney Jackson stated that two weeks ago Jim Mulder, Executive
Director of the AMC, met with the Board and discussed the possibility of proposing legislation
to give the Board the option of making certain elected county positions appointed. He indicated
that there was some miscommunication which occurred in terms of what the next step would be.
It was the County‟s understanding that the AMC would send Houston County a proposal to
review and then determine whether to move forward. It was the AMC‟s understanding that
Houston County wanted the proposed legislation sent to our legislators. Therefore, there is
currently a proposal for legislation in the offices of our senator and representatives. County
Attorney Jackson recommended that the Board discuss this issue and then adopt a resolution
supporting the legislation as written, supporting it subject to amendment or withdrawing it. He
indicated that the legislation, as written, would allow the Board to make the offices of Auditor,
Treasurer and Recorder appointed, but it does not mandate the Board to do so. Discussion was
held regarding whether special legislation is required to combine the offices of Auditor and
Treasurer. Mr. Comstock indicated that there is legislation in place allowing these offices to be
combined. It was pointed out that the Board‟s intent was to have legislation adopted to allow
the Board to make the Auditor and Treasurer positions appointed. The Board is not considering
any restructuring with regard to the Recorder‟s Office at this time. Also, the Recorder is not in

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favor of having her position appointed. After discussion, motion was made by Commissioner
Bjerke, seconded by Commissioner Connery and unanimously carried to adopt the following
resolution:

                                  RESOLUTION NO. 08-17

        WHEREAS, the positions of Houston County Auditor and Houston County Treasurer
are currently elected positions; and

      WHEREAS, the Houston County Auditor has recently submitted his resignation effective
May 31, 2008; and

       WHEREAS, the Houston County Board of Commissioners is considering restructuring
and/or combining the offices of Auditor and Treasurer; and

        WHEREAS, as part of the proposed restructuring, the Board is considering making these
offices appointed rather than elected; and

      WHEREAS, H.F. No. 3577 has been introduced and provides that the offices of Houston
County Recorder, Auditor and Treasurer may, by resolution of the Houston County Board,
become appointed offices rather than elected offices; and

        WHEREAS, the Houston County Board is not, at this time, considering any restructuring
that involves the office of County Recorder; and

       WHEREAS, the Houston County Recorder prefers that her position remain elected;

       NOW, THEREFORE, BE IT RESOLVED that the County of Houston Board of
Commissioners hereby supports H.F. No. 3577 with the amendment to remove any mention of
the position of County Recorder.

        File No. 7 -- At this time PHN Director Rock and Health Educator Myhre met with the
Board. Health Educator Myhre reported that Houston and Fillmore Counties received a joint
grant from Blue Cross Blue Shield to do educational programs targeting adults. One of the
programs they are offering is a “Highway to Health” program for county employees. This is a
fitness challenge whereby employees will keep a log of their physical activities on a monthly
basis. Completed tracking sheets received on time will be entered in a monthly drawing for
prizes and gift certificates. They also plan to offer “Lunch-n-Learn” sessions with a presentation
to be made on a different health topic each month. A light lunch will be provided to those who
RSVP on time. The cost of this program is covered entirely by grant funding, with no expense to
the County. Health Educator Myhre stated that she also wants to remind employees that Blue
Cross Blue Shield health insurance provides a rebate on monthly fitness center memberships.



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       It was pointed out that the Joint Board of Health meeting scheduled for March 11th has
been changed to a teleconference.

       File No. 8 -- Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve the Joint Powers Agreement for the Southeast
Minnesota Regional Radio Board contingent upon the approval of County Attorney Jackson.

       File No. 9 -- Auditor Johnson reported on a request for a Disaster Credit on behalf of
Debra A. Myhre, Parcel #21.0929.000 as the house on this property was destroyed by a fire.
The Disaster Credit for Payable 2007 taxes amounts to $142.72. Motion was made by
Commissioner Bjerke, seconded by Commissioner Connery and unanimously carried to approve
the same.

       Chairperson Thompson reported that a conference call was held with Attorney Scott
Anderson regarding the City of Caledonia‟s proposed zoning changes. A meeting will be held
with Caledonia representatives in the near future.

      Commissioner Bjerke reported that the SE MN Water Resources Board is sponsoring a
forum on April 4th from 9:00 a.m. to 3:00 p.m. regarding the flood. It was agreed that Auditor
Johnson will RSVP that one commissioner will be attending.

      Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 10 -- Correspondence to Payroll regarding the increase
          in FTE for Tammy Mauss from 0.9 to full time for the 2008 construction
          season.

                   File No. 11 -- Correspondence to Ryan & Sarah Herman
          regarding rental space in the former ASCS building and indicating that
          Houston County only intend to rent space for Extension.

                   File No. 12 -- An e-update from Represetnative Tschumper
          regarding the transportation bill.

                   File No. 13 -- A Title IV-D Cooperative Agreement with the
          MN Department of Human Services and the Houston County Human
          Services, Sheriff and County Attorney Offices.




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       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Connery and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, March 11, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




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    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, March 11, 2008                      9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners;          Engineering Supervisor
                   Kopp; Sheriff Ely; Zoning Administrator Scanlan;        Environmental Services
                   Director Frank; Joyce Iverson; Recorder Bauer;          Winona State Nursing
                   Students; PHN Director Rock; PHN Accountant              Lillegraven; Reporters
                   Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the March 4, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $ 34,673.10
              Road & Bridge Fund                                  73,679.45
                                                               ---------------
              Total                                            $108,352.55
                                                               =========

        Chairperson Thompson welcomed three Winona State University nursing students who
are present to observe today‟s meeting.

        File No. 2 -- At this time Engineering Supervisor Kopp met with the Board and requested
approval of a master partnership contract with MN DOT for one year. Master contracts are
approved every five years. Engineer Evans and County Attorney Jackson are discussing
changing the language of the contract, therefore, they would like to approve a temporary one
year contact at this time. The master partnership contract allows MN DOT to perform testing on
our bridges, perform routine maintenance, etc. After discussion, motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to adopt
the following resolution:

                                 RESOLUTION NO. 08-18
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       WHEREAS, The Minnesota Department of Transportation wishes to cooperate closely
with local units of government to coordinate the delivery of transportation services and
maximize the efficient delivery of such services at all levels of government; and

       WHEREAS, Mn/DOT and local governments are authorized by Minnesota Statutes
sections 471.59, 174.02, and 161.20, to undertake collaborative efforts for the design,
construction, maintenance and operation of state and local roads; and

        WHEREAS: the parties wish to be able to respond quickly and efficiently to such
opportunities for collaboration, and have determined that having the ability to write “work
orders” against a master contract would provide the greatest speed and flexibility in responding
to identified needs.

       THEREFORE, BE IT RESOLVED:

    1. That the County of Houston enter into a Master Partnership Contract with the Minnesota
       Department of Transportation, a copy of which was before the Board.

    2. That the proper County officers are authorized to execute such contract, and any
       amendments thereto.

    3. That the County Engineer is authorized to negotiate work order contracts pursuant to the
       Master Contract, which work order contracts may provide for payment to or from
       Mn/DOT, and that the County Engineer may execute such work order contracts on behalf
       of the County without further approval by this Board.

       At this time Sheriff Ely met with the Board. He reported that County Attorney Jackson
has reviewed and approved the Joint Powers Agreement with the Southeast Minnesota Regional
Radio Board. The Board has already approved the agreement, subject to County Attorney
Jackson‟s approval.

       File No. 3 -- Sheriff Ely presented a State of Minnesota Annual County Boat and Water
Safety Grant Agreement and a Federal Boating Safety Supplement Grant Agreement for
approval. The state grant is in the amount of $6,704.00 and the federal grant is in the amount of
$5,000.00. Motion was made by Commissioner Corcoran, seconded by Commissioner Connery
and unanimously carried to approve the agreements and to authorize the signature of Chairperson
Thompson.

        Sheriff Ely requested authorization to hire the following temporary employees to assist
with boat patrol for the 2008 season: Bob Schuldt, Bill Hargrove, Tim Irwin and Mike Ernster.
Sheriff Ely stated that these are licensed officers. Motion was made by Commissioner Corcoran,
seconded by Commissioner Bjerke and unanimously carried to approve the same.




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.




        Chairperson Thompson reported that Sheriff Ely discussed in committee the issue of
hiring a drug officer. She has requested that he draft a job description for the position for the
Board‟s review.

       Commissioner Corcoran reported that road bans go into effect on Thursday, March 13th.

        Commissioner Bjerke reported on an EDA meeting which he attended. The EDA is
questioning whether approximately $1,400 of unspent funds from last years budget can be
carried forward for use by the Trails Committee. It was pointed out that no county departments
are allowed to carry over funds as our financial system does not provide for this.

       File No. 4 -- Auditor Johnson requested approval of the 2008 Natural Resources Block
Grant Agreement. Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to approve the same.

      It was agreed to schedule a Joint Board of Health meeting on May 13, 2008 at 1:00 p.m.
at Temptations Restaurant in Spring Grove.

       Commissioner Graf reported on the MCIT spring retreat held last week. They discussed
insurance coverage for joint powers agreements and joint powers entities. Also, he reported that
the former chairman of MCIT passed away recently.

       File No. 5 -- At this time PHN Director Rock and Public Health Accountant Lillegraven
met with the Board to review the 2007 Public Health Expenditure Report.

       Brief discussion was held regarding emergency preparedness and the nursing homes
involvement in this process.

       File No. 6 -- Zoning Administrator Scanlan reported on two applications for Conditional
Use Permits, both of which are fixing erosion that occurred due to the August flood.  Motion
was made by Commissioner Connery, seconded by Commissioner Graf and unanimously carried
to approve the issuance of the Conditional Use Permits.

             Craig Colbenson - Yucatan Township - To move more than 10 cubic yards
             in a Shoreland District.

             La Verne Oesterle - Mound Prairie Township - To move more than 10
             cubic yards in a Shoreland District.

       File No. 7 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
approve the issuance of the following zoning permit:



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             Dennis and Gary Sanden - Houston Township - lean-to addition to existing
             pole shed (8‟ x40‟)

       File No. 8 -- At this time Environmental Services Director Frank met with the Board and
reported on the 2008 Natural Resources Block Grant and the in-kind match required of the
County.

        File No. 9 -- At this time Joyce Iverson met with the Board and reported that two flood
business loans are ready for closing, being 7 Rivers Surplus in the amount of $10,400 and Twin
Creeks Golf in the amount of $130,727. They have added $1,000 to each loan to cover the
closing costs. It was pointed out that the 7 Rivers Surplus loan does not involve real estate, but
rather, personal property which will be secured by a UCC. After discussion, motion was made
by Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried to
approve both loans.

        Joyce Iverson reported that she sent out a letter with a survey asking potential applicants
whether they intend to apply for flood business loans. So far, they have a potential intent to
apply for up to $1.2 million in funds. This would mean that approximately $300,000 would be
repayable to Houston County for the revolving loan funds. These funds could be loaned out
again for businesses through the EDA.

       Chairperson Thompson stated that Houston County received an invitation to a 7 Rivers
conference, and she inquired whether anyone from the EDA attends these. Joyce Iverson
responded that she and John Benton have attended at times.

       Commissioner Connery reported that he toured three highway department facilities last
Wednesday. He indicted that several of them had a meeting room area that could be utilized by
the public for evening meetings, while the rest of the building was locked off.

        Commissioner Connery reported on a Houston trails meeting he attended last Friday.
The committee had been working on land acquisition and had met with landowners on both sides
of the Root River prior to the August flood. They plan to continue the land acquisition process
in the near future.

       Commissioner Connery reported on a tour of the potential bike trail route from La Crosse
to Houston which was held on Sunday with Senator Ropes. Valley View Nursing Home
furnished a bus for this tour.

       Commissioner Connery reported on a Semcac meeting which he attended last night.
They are again operating in their central office in Rushford after the flood, and they are planning
an open house for next month.

       Commissioner Bjerke reported on a CJC meeting which he attended last week. They
discussed where they are at with Caledonia City. Chairperson Thompson reported that Court

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Administrator Kuhlers brought up the closing of her office on Tuesday mornings. She stated
that, with regard to planning for the new Criminal Justice Center, they have to consider the
possible consolidation of courts around the state. She indicated that there needs to be more long
range planning as far as courts before anything is done.

        Commissioner Bjerke reported on an EDA meeting held last week. Caledonia City had
been providing Joyce Iverson with office space and a computer when she worked for both the
City and the County. She is no longer working for Caledonia City, therefore, she will be needing
office space and a computer. They are looking into the possibility of utilizing administrative
money to cover this cost. Also, a representative of Historic Bluff Country attended the EDA
meeting and reported on 40/60 flood crisis matching funds to promote southern Minnesota since
the flood. 2008 is the 150th anniversary of the fair, so they want to promote this. Also, Ann
Selness, the new manager of Beaver Creek Valley State Park, attended the EDA meeting. She
reported that the park averages 45,000 visitors per year. Last year with the flood this was down
to 25,000 visitors. They performed a survey and found that, typically, each person visiting the
park spends $25 in the community. They want to promote the park as a great resource for the
area. Eric Benson will soon be opening Benson Technology at the Airport. Also, an Airport
open house is scheduled for May 10th.

       Commissioner Bjerke and Chairperson Thompson reported that they met with Caledonia
City regarding the CJC to try and resolve issues with variances and zoning. Engineer Evans
attended because of the proposed purchase of 22 acres of land for the new Highway Department
and the fact that 8 acres are unusable for expansion. GIS Coordinator Krzoska also attended and
presented maps showing proposed setback requirements. A public hearing is scheduled for
March 24th at 7:00 p.m. at the Caledonia City Auditorium.

       The time being 10:30 a.m., the Board recessed in order to hold a teleconference with
Fillmore County for the Joint Board of Health.

       The Board reconvened in open session.

       File No. 10 -- Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to adopt the following resolution:

                                  RESOLUTION NO. 08-19

        BE IT RESOLVED that the Houston County Board of Commissioners, by this
resolution, do hereby approve the 2007 Local Public Health Expenditure Report and recommend
it be submitted to the Commissioner of Health for approval.

      File No. 11 -- Auditor Johnson requested approval of a final estimate on behalf of
Brennan Construction in the amount of $26,808.40 for S.A.P. 28-599-60. Engineer Evans is
recommending approval of the same. Motion was made by Commissioner Connery, seconded
by Commissioner Graf and unanimously carried to adopt the following resolution:

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.




                                RESOLUTION NO. 08-20

       WHEREAS, Contract No. 174 has in all things been completed, and the County Board
being fully advised in the premises,

        NOW, THEN BE IT RESOLVED, That we do hereby accept said completed project for
and in behalf of the County of Houston and authorize final payment as specified herein.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                  File No. 12 -- Correspondence to Payroll regarding the hiring
          of Michelle Massman as Child Support Officer.

                   File No. 13 -- An invitation to a 7 Rivers Region Economic
          Indicators Forum scheduled for Wednesday, April 2, 2008, from 7:00
          a.m. to 9:00 a.m. at the UWL-La Crosse Cleary Alumni & Friends
          Center.

                   File No. 14 -- Report of tons delivered to Xcel during February
          2008.

                    File No. 15 -- Correspondence to Kevin Siebold thanking him
          for his years of service to Houston County.

       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, March 18, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                      Page   67
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, March 18, 2008                       9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Rena Patterson-MN DOC;
                   Judge Fabian; Denise Schaffer; Nancy Welch; Nichole Hintz; Lou Ferguson;
                   Sheriff Ely; Chief Deputy Sheriff Yeiter; District Manager Tuck; Zoning
                   Administrator Scanlan; Environmental Services Director Frank; Jill Diana;
                   Personnel Director Comstock; County Attorney Jackson; Reporters Warner,
                   Popplewell & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Connery and
unanimously carried to approve the minutes of the March 11, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

              County Revenue Fund                               $126,256.60
              Road & Bridge Fund                                   20,751.46
                                                                ---------------
              Total                                             $147,008.06
                                                                =========

         File No. 2 -- At this time Judge Fabian and Rena Patterson, District Supervisor for the
MN Department of Corrections (DOC), met with the Board. Ms. Patterson reported on the option
of contracting with the MN DOC for probation services. Ms. Patterson indicated that she is the
MN DOC Supervisor for the counties of Houston, Winona, Wabasha and Goodhue. The MN
DOC currently provides felony probation services, supervisory release services and STS services
in Houston County. She indicated that Winona County currently contracts with the MN DOC for
all of their probation services, and she invited the Board to talk to the Commissioners in Winona
County to find out how they feel it is working. She indicated that contracting for services would
basically be “a wash” as far as the county‟s cost for salary and benefits. Under the contract
system, the current county probation agents would become MN DOC employees, subject to a six
month probation period. They would continue at the same rate of pay, they would retain their
credit for years of service, and they would carry over their vacation and sick leave. Ms.
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.




Patterson would provide supervision at no cost to Houston County. Things such as hiring, job
coaching, annual performance reviews, would be the responsibility of the MN DOC. The MN
DOC provides a great deal of training for free. She felt one of the most important things is that
the state would assume all liability for the state employees. Support staff would remain county
employees. She would work with Houston County‟s personnel director on hiring, evaluations,
training, etc. The MN DOC also provides training for support staff. Expenses for attending
trainings, such as mileage, meals, etc. would be county expenses. Under the contract system, the
MN DOC would also become responsible for the annual fee involved with the CSTS computer
system, which amounts to $2,066 for 2008. Houston County would continue to be responsible
for office space, office equipment and supplies. Judge Fabian stated that the Governor has
placed a hiring freeze on state employees. However, this would not be considered a hiring, but
rather, a transition. Chairperson Thompson inquired what would happen to the fees collected by
the Probation Department. Ms. Patterson responded that these would remain with the County.
She works together with the County on the budgeting process, however, the County has the
ultimate decision making power. Under the state system, they would also provide staff coverage
if an employee were to take a family medical leave, or in emergency situations.

        Personnel Director Comstock indicated that the County Probation Officer‟s Association
is willing to make a presentation on why the County should continue with their current system.
Under our current system, the County pays the salary and benefit amounts upfront, and receives
up to 50% reimbursement from the state. Under the state contract, the state would pay the costs
upfront and bill Houston County for our portion of the costs.

       After discussion, the Board indicated that they would like to consider their options for
another week.

        File No. 3 -- At this time Sheriff Ely and Chief Deputy Sheriff Yeiter met with the Board
and presented a job description for the position of Investigator. They indicated that the proposed
Drug Officer would be an investigator assigned full-time to the Drug Task Force. Sheriff Ely
stated that, while Houston County has been a member of the Drug Task Force, we are the only
member that has not had a full-time officer assigned to it. Houston County will retain all
supervisory duties over this position. At times this officer will assist the other counties involved
in the Drug Task Force, and they in turn, will assist Houston County. Chief Deputy Yeiter
reported that approximately a month ago La Crosse County arrested 14 people involved in drugs.
Of the 14 arrested, 9 were from Houston County. He indicated that, because La Crosse is
aggressively enforcing drug issues, they are pushing the dealers to Houston County. He
indicated that drug enforcement is not something we can be doing part-time or half-heartedly. It
requires time and commitment. He felt that, by fighting drugs full-time, we will see a decrease
not only in drug activity, but also in related problems such as theft, robberies, burglaries,
assaults, etc. Commissioner Bjerke inquired whether the Drug Task Force will reimburse the
County for a portion of this employee‟s salary. Sheriff Ely responded that they will not.
However, they do pay for over-time and provide a car, fuel and maintenance costs for the car.
The Drug Task Force is funded by federal funding which is allocated to the state. This new
position is budgeted for 2008.

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        Chief Deputy Sheriff Yeiter reported that Tim Irwin, one of the officers who does boat
patrol, is also a certified scale operator. He indicated that the department has budgeted $5,000
for a part-time employee separate from boat patrol. He requested authorization to utilize this
temporary employee for enforcement of road bans. If approved, he will work with Maintenance
Foreman Molling to set up a schedule. After discussion, it was the consensus of the Board to
allow utilizing Tim Irwin for the enforcement of road bans.

       At this time District Manager Tuck met with the Board to discuss the Emergency
Watershed Protection (EWP) Program. Mr. Tuck stated that the EWP project which was
previously approved by the Board is 17 days into construction. Also, two sites that were
formerly evaluated and wait listed have been reevaluated this spring and changed to exigency
status. He indicated that he has received a letter from the state indicating that they will
contribute the 25% local match. After discussion, motion was made by Commissioner Corcoran,
seconded by Commissioner Connery and unanimously carried to approve the additional EWP
Program projects, to delegate the same to the RRSWCD and to authorize Ralph Tuck to sign the
paperwork relating to these projects.

        File No. 4 -- Personnel Director Comstock reported that several negotiation meetings
have been held with the Local 49 Union, and they have reached an agreement. Mr. Comstock
briefly summarized the changes from the last contract. He indicated that the contract will remain
open with regard to insurance, as they are bargaining with all of the unions in this regard. This is
a three year contract. After discussion, motion was made by Commissioner Corcoran, seconded
by Commissioner Connery and unanimously carried to approve the contract and to authorize the
signatures of Chairperson Thompson and Auditor Johnson, with the understanding that the issue
of insurance is pending. Commissioners Corcoran and Connery stated that they would like to
thank the union representatives for the excellent job they did in handling the negotiations.

        File No. 5 -- Personnel Director Comstock reported that the Wildcat Park Committee
interviewed 8 applicants as potential sub-contractors for the management of Wildcat Park for the
2008 camping season. They are recommending that the Board approve contracting with Ed
“Jake” Lonkoski. Motion was made by Commissioner Graf, seconded by Commissioner Bjerke
and unanimously carried to approve the same and to authorize the signature of Chairperson
Thompson on said contract.

        File No. 6 -- Personnel Director Comstock stated that there were previously rules drafted
for Wildcat Park, however, they were not in ordinance form. The Wildcat Park Committee is
recommending that ordinances be adopted for both Wildcat Park and Botcher Park. The major
difference between the two parks is that Wildcat Park allows camping, while Botcher Park is for
day use only. Mr. Comstock recommended scheduling a public hearing in this regard. After
discussion, motion was made by Commissioner Corcoran, seconded by Commissioner Connery
and unanimously carried to schedule a public hearing for April 8, 2008. It was pointed out that
Wildcat Park must be operated in conjunction with Corps of Engineers rules and regulations, as
the County leases the land from the Corps of Engineers.

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       Personnel Director Comstock requested that the Board take action to increase the FTE of
PHN Lisa Scribner from 0.8 FTE to full-time and to increase the FTE of PHN Kelli Tornstrom
from 0.6 FTE to 0.8 FTE to cover the increased workload in the Public Health Department.
Motion was made by Commissioner Bjerke, seconded by Commissioner Corcoran and
unanimously carried to approve the same.

        Personnel Director Comstock reported that Kevin Walther is nearing the end of his
probation period in the position of Jailer/Dispatcher. He recommended that the Board take
action to change Mr. Walther‟s employment status from probationary to regular effective on his
anniversary date. Motion was made by Commissioner Connery, seconded by Commissioner
Graf and unanimously carried to approve the same.

       At this time Zoning Administrator Scanlan and Environmental Services Director Frank
met with the Board. Mr. Scanlan reported that there are numerous landowners coming in for
permits to correct serious erosion problems resulting from the August flood. Currently, a
Conditional Use Permit is required for filling in a flood plain. However, in order to move the
process along quicker for flood repair that needs to be done, he is recommending that the Board
require only a Zoning Permit for those applications dealing with repair due to the August
flooding.    After discussion, motion was made by Commissioner Corcoran, seconded by
Commissioner Graf and unanimously carried to approve the same.

      Commissioner Graf reported on a meeting held last Thursday which he, Commissioner
Connery and Chairperson Thompson attended regarding updating the Zoning Ordinance and
Land Use Plan.

        Commissioner Connery reported on a SteadFast meeting held last Thursday. They are
still working on trying to get Gundersen Lutheran Clinic to consent to being a provider.

       Commissioner Bjerke reported on a Bear Creek Watershed meeting he attended last
Wednesday. Iowa has put a moratorium on using earmarks to fund water retention ponds. For
the next several years they will have no funding for joint projects.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                    File No. 7 -- Correspondence to Payroll regarding the hiring
          of temporary employees for boat patrol.

                  File No. 8 -- A copy of a resolution adopted at the Spring
          Grove Township Annual Meeting held March 11, 2008 regarding
          zoning.



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.




       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, March 25, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                              Page     72
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, March 25, 2008                      9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson and David Corcoran

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Bob Goede & Mark Casey-
                   MCIT; County Attorney Jackson; Assistant County Attorney Ashmore;
                   Sheriff Ely; Jail Administrator Schiltz; County Engineer Evans; Maintenance
                   Foreman Molling; Joyce Iverson; Christopher Graf; Lauren Graf; Reporters
                   Warner, Gray & Popplewell

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to approve the minutes of the March 18, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $38,552.35
              Road & Bridge Fund                                 18,617.79
                                                               --------------
              Total                                            $57,170.14
                                                               ========

       County Attorney Jackson introduced Araysa Ashmore, the new Assistant County
Attorney who began employment with Houston County last week.

       File No. 2 -- At this time Bob Goede and Mark Casey, MCIT, met with the Board and
presented the 2007 member report. Mr. Goede reported that Houston County has received
dividends averaging $94,000 per year for the past five years. Taking into account the cost of
insurance, less the dividends, Houston County is averaging $124,000 per year for MCIT
insurance coverage and related programs such as insurance seminars, education, training, etc.

       At this time Sheriff Ely met with the Board. Sheriff Ely reported that continuing
education is being held this week and next week for all officers in the County. This training is
being sponsored by Houston County and is being held in La Crescent. He indicated that, by
holding the training locally, costs can be kept to a minimum.


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.




        Sheriff Ely reported that there are currently 12 inmates being housed in our jail and 16
are being housed out-of-county.

        Sheriff Ely inquired whether the Board has made a decision regarding hiring an
Investigator to work as a Drug Officer. This position is budgeted for 2008. Motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
authorize advertising for this position.

        At this time Personnel Director Comstock met with the Board and reported that Jana
Halverson has submitted her resignation from the position of Case Aide in the Human Services
Department. Motion was made by Commissioner Graf, seconded by Commissioner Corcoran
and unanimously carried to accept the resignation and to thank her for her years of service. Mr.
Comstock reported that they have posted the vacancy internally. Since they have recently
advertised for the position of Case Aide, they plan to recruit from this recent list of applicants.

       Mr. Comstock requested that the Board take action to hire Madison Trutza as a drop-site
supervisor. Motion was made by Commissioner Corcoran, seconded by Commissioner Graf and
unanimously carried to approve the same.

       Mr. Comstock requested that the Board take action to hire Sara Heckman as an on-call
Home Health Aide to be used as needed. Motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to approve the same.

        File No. 3 -- Mr. Comstock inquired whether the Board wished to continue their
discussion regarding the possibility of contracting with the MN DOC for probation services. If
the Board chooses to approve this option, Mr. Comstock indicated that we need to start the
process for transitioning to that system. After discussion, motion was made by Commissioner
Corcoran, seconded by Commissioner Connery and unanimously carried to adopt the following
resolution:

                                   RESOLUTION NO. 08-21

       WHEREAS, Houston County is currently utilizing County Probation Officer System; and

        WHEREAS, Houston County feels they will benefit by contracting with the Minnesota
Department of Corrections (MN DOC) for probation services, since the MN DOC will provide
for the supervision and training of the employees in this department, will assume all liability for
the state employees in the department, and will become responsible for the annual fee involved
with the CSTS computer system;

     NOW, THEREFORE, BE IT RESOLVED that Houston County will contract with the
MN DOC for probation services.



REGULAR SESSION                                                                       Page      74
.




       Mr. Comstock stated that the County has weighed the option of our current system and
contracting with the MN DOC due to the timing of a resignation, not due to the operations of the
department.

       File No. 4 -- At this time Joyce Iverson met with the Board and requested approval of a
Business Flood Recovery Loan on behalf of Ace Telephone Association in the maximum amount
of $41,300.00. Of this amount, $30,975.00 is forgivable and $10,325.00 is repayable. Motion
was made by Commissioner Graf, seconded by Commissioner Connery and unanimously carried
to approve the same.

       File No. 5 -- Joyce Iverson requested approval of a Business Flood Recover Loan on
behalf of Rushford Golf Club in the maximum amount of $7,129.00. Of this amount, $5,347.00
is forgivable and $1,782.00 is repayable. Motion was made by Commissioner Corcoran,
seconded by Commissioner Graf and unanimously carried to approve the same.

       File No. 6 -- Joyce Iverson reported that Tri-State Auto Outlet Corporation is in the
process of applying for two Business Flood Recovery Loans, one being for real property and one
for equipment and inventory. At this time, she is requesting that the Board approve proceeding
with the equipment and inventory loan in the maximum amount of $287,925.00, of which
$71,981.00 is repayable over 7 years. She would like the Board to approve proceeding with the
loan agreement or an emergency payment utilizing a promissory note, subject to the discretion
of County Attorney Jackson. After discussion, motion was made by Commissioner Corcoran,
seconded by Commissioner Connery and unanimously carried to approve the same.

       File No. 7 -- Joyce Iverson requested approval of an amendment to the Business Flood
Recovery Loan Program - Revolving Loan Fund Guidelines which would allow for utilizing a
maximum of 60% of Business Flood Recovery Loan funds, along with a 40% private match, of
which all of the loan funds would be repayable, to assist with the retention of businesses which
may otherwise be unable to re-establish themselves. She asked that this be approved subject to
the approval of County Attorney Jackson. The proposed amendment must also be approved by
DEED. Joyce indicated that there are two or three tentative applications for funding under this
amendment. After discussion, motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to approve the amendment, contingent upon the
approval of County Attorney Jackson.

      File No. 8 -- Joyce Iverson presented the 2007 Houston County EDA Annual Report.
Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to accept said report.

       File No. 9 -- At this time Engineer Evans met with the Board and requested approval of
Houston County Right of Way Plat No. 19 in connection with S.P. 28-632-02. Engineer Evans
reported that, along with the bridge project, they will realign Malay Road. Because a township
road is involved, Houston County will transfer ownership of the additional right of way we


REGULAR SESSION                                                                    Page      75
.




purchase to the Township. After discussion, motion was made by Commissioner Connery,
seconded by Commissioner Graf and unanimously carried to adopt the following resolution:

                                   RESOLUTION NO. 08-22

APPROVING AND ACCEPTING HOUSTON COUNTY RIGHT OF WAY PLAT NO. 19
            FOR RECONSTRUCTION PROJECT SP 28-632-02

        WHEREAS, Houston County desires to improve and reconstruct that part of C.S.A.H. 32,
located 0.5 miles North of the Junction with CR 249 (4 miles East of Caledonia), with the
Replacement of Bridge No. 6936 with Culvert No. 28J20 and Approach Grading Project
identified as SP 28-632-02; and

        WHEREAS, the Houston County Highway Department and the Houston County
Surveyor have prepared Houston County Right of Way Plat No. 19 to identify and delineate the
right of way and temporary slope easements required for this project; and

       NOW THEREFORE BE IT RESOLVED that Houston County approves and accepts
Houston County Right of Way Plat No. 19 as designating the definite location of that part of
C.S.A.H. 32 located in located in Section 15 & 16, Township 102 North, Range 5 West, as
presented on this date, March 25, 2008, and authorizes it to be filed of record with the Houston
County Recorder.

       BE IT FURTHER RESOLVED that Ann Thompson, County Board Chairperson, is
hereby authorized to execute and sign the certification statement on said plat on behalf of
Houston County.

        Maintenance Foreman Molling reported that, while Tracey Von Bargen was County
Engineer, he had the EPA inspect the county shops with regard to drainage. The EPA is
concerned with the Spring Grove shop, as it connects to a drain field. Their concern is that runoff
coming from the building could be considered hazardous. Mr. Molling stated that there is no
way to monitor this with our present system. If the shop were connected with the city sewer
system, it would be controlled. The EPA is requiring that Houston County send them our plan of
action. Maintenance Foreman Molling stated that he would like to pursue connecting the Spring
Grove shop to city sewer. The other option would be to install holding tanks which would have
to be pumped periodically. Engineer Evans stated that, if we use a holding tank, the material
pumped out would have to be hauled to a special site, as it is considered to be hazardous.
Commissioner Connery inquired how far the sewer line would have to be extended to connect to
the county shop. Mr. Molling estimated that it would be between 1,000 and 1,500 feet. Reporter
Gray indicated that it is her understanding that a lift station would be required in order to extend
the sewer line to that area. After discussion, motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to proceed to negotiate with the
City of Spring Grove regarding the possibility of extending sewer services to the Spring Grove
county shop.

REGULAR SESSION                                                                        Page      76
.




        File No. 10 -- Auditor Johnson requested that the Board take action to approve an
abatement on behalf of Frederick Tschumper, Parcel No. 05-0111-000, for mobile home taxes
since the mobile home was moved off the parcel and sold to another individual. If approved, the
payable 2007 tax would be reduced by $268.00 and the payable 2008 tax would be reduced by
$274.00. On the recommendation of Assessor Dybing and Auditor Johnson, motion was made
by Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to
approve the same.

        Discussion was held regarding a Caledonia City Public Hearing held on Monday, March
24, 2008, regarding setback requirements. The City of Caledonia previously required a setback
of 50 feet for agricultural and industrial property from R1 and R2 districts. This setback was
increased to 150 feet. The City reduced the setback requirements from highways/streets as
follows: 1) the setback from state highways was reduced from 110 feet to 70 feet; 2) the setback
from county roads was reduced from 90 feet to 50 feet; 3) the setback from city streets was
reduced from 75 feet to 30 feet. Commissioner Connery indicated that he does not follow the
city‟s rationale for the 150 foot setback requirement. He indicated that 150 feet amounts to half
of a football field. Chairperson Thompson indicated that the majority of people at the hearing
spoke in opposition to the changes.

        Chairperson Thompson reported on a meeting scheduled by Representative Drazkowski
regarding regionalism. The counties of Goodhue, Wabasha, Winona, Houston and Fillmore were
invited to the meeting. She stated that Representative Drazkowski received a lot of input from
the counties present regarding state mandates and the positions they put counties in.

        Commissioner Connery updated the Board with regard to the proposed site for a new
county highway department. He indicated that a meeting is scheduled for this afternoon
regarding which county departments could possibly move to the new shop. The next step is to
bring this proposal to the County Board. After this, they will come up with a footprint for the
site, which will be presented to the committee and then to the County Board. If approved, they
will apply for a building permit.

        Sheriff Ely requested clarification regarding the hiring of a Drug Officer. He inquired
whether the Board understands that it is his intent to add one position. He indicated that, if an
existing employee within the department applies for the position of Drug Officer and is hired, he
intends to hire another employee to fill that vacant position. The Board agreed that this is their
understanding.

         Sheriff Ely reported that he received a memo from Many Rivers, a juvenile detention
facility in Rochester, indicating that they are cutting back on the number of beds due to funding
shortfalls. They will continue to house juveniles from Houston County until the bed is needed
by Olmsted County. At that time, they will notify us to pick up our juvenile. If Houston County
does not do so within 12 hours, they will transport them to another facility and bill us for the
costs involved. Commissioner Corcoran stated that, when this facility was first established, it

REGULAR SESSION                                                                      Page      77
.




was with the understanding that Houston County would be allowed one bed in the facility at all
times. He directed Sheriff Ely to contact County Attorney Jackson in this regard, as he currently
serves on the committee for this facility.

      Motion was made by Commissioner Graf, seconded by Commissioner Connery and
unanimously carried to place on file the following items from the consent agenda:

                    File No. 11 -- Correspondence to Payroll regarding utilizing the
           services of Tim Irwin for enforcing road bans, the increase in FTE for
           Lisa Scribner and Kelli Tornstrom and the change in employment status
           for Kevin Walther from probationary to regular status.

                    File No. 12 -- A notice of a public hearing scheduled for 10:00
           a.m. on 4/8/08 regarding the possibility of adopting ordinances for
           Wildcat Park and Botcher Park.

                     File No. 13 -- Correspondence from Sheila Schroeder to SE
           MN Historic Bluff Country indicating that Houston County agrees to be
           the fiscal agent for the National Scenic Byways Program Grant for 2008.

                    File No. 14 -- An e-mail from John Benton, Chair of the
           Airport Commission, regarding the bathroom at the airport.

                   File No. 15 -- Notice of an Investment Committee scheduled
           for March 25, 2008.




REGULAR SESSION                                                                        Page   78
.




       There being no further business, motion was made by Commissioner Corcoran, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, April 1, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                               Page     79
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, April 1, 2008                 9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Ann Thompson, David Corcoran and Tom Bjerke

Others Present:    Chief Deputy Auditor Meiners; Personnel Director Comstock; County
                   Attorney Jackson; Surveyor Walter; Maintenance Foreman Molling; Social
                   Workers Rommes and Meyer; Jerry Martell; Assessor Dybing; Sheriff Ely;
                   Reporters Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to approve the minutes of the March 25, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

               County Revenue Fund                            $ 54,397.87
               Road & Bridge Fund                               202,305.49
                                                              ---------------
               Total                                          $256,703.36
                                                              =========

        File No. 2 -- At this time County Attorney Jackson met with the Board and presented his
resignation from the position of County Attorney effective May 30, 2008. He commented that
this has been a very difficult decision. He indicated that he has had the support of an incredible
County Board, staff and co-workers and he thanked the Board for their support. He has the
opportunity to do criminal prosecution with the possibility of heading up a new criminal
prosecution team in Olmsted County. County Attorney Jackson stated that, under M.S. 375.08,
the Board has the authority and obligation to appoint an interim county attorney to fill out his
unexpired term which runs through 2010. Motion was made by Commissioner Corcoran,
seconded by Commissioner Graf and unanimously carried to accept the resignation of County
Attorney Jackson with regret. Chairperson Thompson stated that she appreciates what a moral
and ethical person County Attorney Jackson is, as well as the fact that he is a very
knowledgeable person. Commissioner Corcoran stated that he does not want to hold anyone
back from advancing their career. The Board thanked Mr. Jackson for his service to Houston
County and wished him well in the future.


REGULAR SESSION                                                                      Page      80
.




       Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke and
unanimously carried to advertise for the vacant position of Houston County Attorney. Personnel
Director Comstock indicated that he will advertise the position on the AMC website, with the
Minnesota County Attorney‟s Association, etc.

        Personnel Director Comstock stated that the Human Services Department had a vacancy
for a case aide due to a recent resignation. Since the department recently recruited for another
case aide position, they reverted back to that applicant pool. At this time he recommended hiring
Cindy Thorson as a case aide for the Human Services Department. Motion was made by
Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried to approve
the same.

        Personnel Director Comstock reported that Michelle Van Beek has submitted her
resignation from the position of Social Worker. Her last day of employment will be April 11,
2008. Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to accept the resignation and to draft a letter thanking Michelle for her years
of service to Houston County. Human Services Director Wilms stated that Michelle will be
greatly missed by the department and by the families and collaborative partners she has worked
with.

       Personnel Director Comstock requested that the Board take action to advertise for the
vacant position of Social Worker. Motion was made by Commissioner Corcoran, seconded by
Commissioner Bjerke and unanimously carried to approve the same. Mr. Comstock clarified
that we will be replacing a full-time position with another full-time position.

        Personnel Director Comstock stated that Danielle Swedberg was initially hired as a full-
time social worker. Subsequently, the County accommodated her personal request to reduce her
position to half-time. He requested that the Board take action at this time to increase the position
back to full-time on a permanent basis, due to caseloads and the needs of the department. The
Board inquired whether the budget included enough funds to cover this increase. After
discussion, it was agreed to table this matter one week in order for a committee of the Board to
meet with Human Services Director Wilms to discuss the Board‟s concerns, caseload numbers,
etc.

        Personnel Director Comstock stated that Nancy Welsch works part-time in the Court
Services Department. Mr. Comstock requested that the Board take action to approve having her
work additional hours in the Veteran Services Department to fill in during a leave of absence.
Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and unanimously
carried to approve the same.

        Personnel Director Comstock reported that David Erickson, Building Maintenance
Department, was hired as a half-time employee, however, he has been working additional hours
due to a leave of absence in that department. Mr. Comstock requested that the Board take action
to increase David Erickson‟s FTE to ¾ time to reflect the actual hours he has been working.

REGULAR SESSION                                                                        Page      81
.




Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and unanimously
carried to approve the same. Mr. Comstock expressed his appreciation that David has been
flexible and willing to help out during the leave of absence in the department.

        At this time Jerry Martell met with the Board. He stated that Houston County is required
to have a hazard mitigation plan in order to obtain federal funds for buy outs. It is his
understanding that the contract with the consultant who was chosen to draft this plan is currently
on hold until it is reviewed by the county attorney. He stated that Hokah was severely impacted
by the flood. They have been working with Representative Walz and FEMA, however, not
having the plan in place is severely hampering their efforts. Therefore, he asked the Board to
encourage the county attorney to expedite this matter. The Board indicated that they will hurry
this process along as quickly as possible.

       Jerry Martell strongly encouraged the Board to accept La Crosse City‟s proposal for
compactors, as he felt it was an excellent deal. The Board indicated that they have instructed
Environmental Services Director Frank to proceed with this.

        File No. 3 -- At this time Surveyor Walter and Maintenance Foreman Molling met with
the Board regarding purchasing a new 2008 truck for the Surveyor‟s Department to replace the
current 1994 truck. They have obtained a bid from Ellingson Motors in the amount of
$23,238.00 for the type of truck they feel would meet the department‟s needs. Surveyor Walter
indicated that he also intends to purchase a few accessories for the truck, such as a topper, skid
roll-out, etc. Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke
and unanimously carried to authorize said purchase.

       File No. 4 -- Received and filed was an MCCC Joint Powers Agreement and Amendment
No. 1 to Joint Powers Agreement. These have been reviewed and approved by County Attorney
Jackson. Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke and
unanimously carried to approve the Joint Powers Agreement and Amendment No. 1 to the Joint
Powers Agreement and to authorize the signature of Chairperson Thompson.

       Commissioner Corcoran reported on a zoning meeting which he attended.

       Commissioner Bjerke reported on Workforce Development and EMS meetings which he
attended. Workforce Development is trying to work with the technical colleges to train
technicians for wind turbines. It is estimated that there will be a need for two technicians for
each wind turbine. Funding is an issue. EMS also has funding issues, and the state has cut
approximately $3 million from the EMS budget.

        At this time Assessor Dybing met with the Board. He indicated that we contract with a
vendor for printing and mailing equalization notices and tax statements jointly in order to save
money on postage. This has saved Houston County thousands of dollars and has worked
successfully for three years. However, this year Houston County instructed the vendor to mail
the notices on March 21st, however, they were not mailed out until March 31st. Several Boards

REGULAR SESSION                                                                      Page      82
.




of Review are scheduled for this week, and there is a concern that people may not have received
sufficient notice in order to be able to attend the meetings. Assessor Dybing stated that he plans
to ask the cities and townships involved if they want to reschedule their meetings for the first
week in May. If they choose not to reconvene their meetings, they have the open book option
whereby the Assessor‟s Office will deal directly with landowners regarding their concerns. If
the landowners are not satisfied, they would then have the opportunity to attend the County
Board of Equalization. Reporter Gray asked Assessor Dybing to clarify whether individuals can
come to the Assessor‟s Office at any time regarding their valuation concerns. Assessor Dybing
stated that this is the case. If a property owner does not feel the matter was handled to their
satisfaction, they can then attend the Local Boards of Review. Citizens must attend the Local
Board of Review or submit a letter, before they are allowed to attend the County Board of
Equalization.

        Assessor Dybing reported that the issue of Green Acres has been a focus recently for the
Department of Revenue. The legislative auditors drafted a report on how Green Acres are
administered state-wide. It appears that things are handled differently among the 87 counties,
and the state wants consistency. Assessor Dybing indicated that the House of Representatives is
introducing a bill which would delete wasteland and woodland form having a Green Acres value.
Assessor Dybing plans to attend the legislative session on Friday in order to testify on Houston,
Fillmore and Winona Counties behalf, as it would have a significant impact on these counties.
Houston County has 302,000 acres classified as agricultural. 76% of Houston County‟s
agricultural acres are signed up for the Green Acres Program. 47% of these acres are woods or
wasteland. The proposed legislation, if passed, would result in a huge valuation shift for those
property owners.

        Assessor Dybing reported that he drafted an article for the newspapers regarding
valuations and explaining the perceptions of foreclosures.

      Commissioner Graf reported that the MCIT website has been updated and is now more
comprehensive and user friendly.

        File No. 5 -- At this time Sheriff Ely met with the Board and presented an invitation to
attend the first meeting of the Southeast Minnesota Regional Radio Board which will be held on
April 16th. They are asking that Houston County name a delegate and an alternate at that time.

        Commissioner Bjerke indicated that he serves on the Code Red Committee and he would
also be willing to serve on the Regional Radio Board.

       Sheriff Ely reported that he is receiving many phones calls regarding road ban
enforcement.

       Chairperson Thompson reported that she spoke with Jim Mulder, AMC, regarding
scheduling a presentation for county staff to get people talking about long range planning. After


REGULAR SESSION                                                                      Page      83
.




discussion, it was agreed to schedule this presentation for 1:00 p.m. on Tuesday, April 15th, and
to invite department heads and the accountants on staff to attend.

      Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                  File No. 6 -- Correspondence to Payroll regarding the hiring of
           Madison Trutza as a drop-site supervisor and the hiring of Sara
           Heckman as an on-call HHA.

                   File No. 7 -- An agenda for the April 3, 2008 StedFast Joint
           Powers Board meeting and a list of scheduled StedFast Joint Powers
           Board meetings for 2008.

                    File No. 8 -- Correspondence from the MN Department of
           Human Services regarding the Single Audit Act Amendments of 1996
           and federally mandated audit resolution procedures.

                     File No. 9 -- Correspondence to Jana Halverson thanking her
           for her service to Houston County.

       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, April 8, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: ___________________________________
         Charlene Meiners, Chief Deputy Auditor




REGULAR SESSION                                                                     Page      84
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, April 8, 2008                 9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Engineer Evans; Personnel
                   Director Comstock; Environmental Services Director Frank; Zoning
                   Administrator Scanlan; Sheriff Ely; Chief Deputy Sheriff Yeiter; Surveyor
                   Walter; Wildcat Park Seasonal Campers (See File No. 1); Reporters Warner,
                   Popplewell & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to approve the minutes of the April 1, 2008 meeting.

       File No. 2 -- Motion was made by Commissioner Bjerke, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

               County Revenue Fund                             $53,669.54
               Road & Bridge Fund                                 7,086.65
                                                               --------------
               Total                                           $60,756.19
                                                               ========

        At this time Engineer Evans met with the Board. He stated that they have discussed
which departments will be housed in the new Highway Department Building. The Committee
has recommended that the Highway Department, Surveyor and Environmental Services/Zoning
be housed in the new facility. He also suggested that the sign shop, which is currently located in
Hokah, be moved to the new facility. In addition, they are proposing having space where a
county mechanic could do the oil changes, tire rotation, and other basic maintenance on county-
owned vehicles for the Sheriff‟s Department, Zoning, etc. A cold storage area has also been
proposed for the Sheriff‟s Department. There has also been discussion on having GIS, Extension
and Driver Examiner space in the new facility. Commissioner Graf inquired whether the
recycling operation would move here. Environmental Services Director Frank responded that
only the office space for his department would be relocated. The recycling operation would
remain in Houston. Commissioner Bjerke inquired whether the current maintenance staff at the
Highway Department has sufficient time to do the maintenance on all county vehicles.
REGULAR SESSION                                                                      Page      85
.




Maintenance Foreman Molling responded that they will have to hire at least one more mechanic.
He indicated that the department currently has a need for an additional mechanic, however, they
do not have room for another position at this time. Engineer Evans indicated that, with only one
mechanic on staff, his time is in great demand, especially in the winter. If he is sick or were to
be injured, it would leave the department in a bind. Maintenance Foreman Molling indicated
that they have discussed the possibility of having the mechanics work staggered shifts to better
accommodate the County‟s needs. Commissioner Bjerke inquired whether hiring another
employee to do the maintenance of vehicles would be cost effective. Commissioner Connery
indicated that he has had this researched, and the county currently has approximately 300 oil
changes done each year on county-owned vehicles. Commissioner Corcoran added that the
County could also realize cost savings by buying oil in bulk.

        Chairperson Thompson inquired whether it was practical to move the Zoning Department
to another facility away from land records. Zoning Administrator Scanlan responded that this
would have been an issue ten years ago, however, with technology today they can access most of
the records they need by computer.

       Chairperson Thompson stated that the proposal to move several departments to the new
Highway Department facility would impact the proposed size of the CJC, and she inquired
whether the committee has looked into this. Commissioner Connery suggested that the proposed
Highway Department facility be sketched with square footages to determine what amount of
space we are looking at, and then we can see if there are duplications with the proposed CJC.
Chairperson Thompson indicated that there are plans to talk to Tim Thompson, MN DOC, in the
near future. Once a CJC meeting is scheduled, she will let the Highway Department Building
Committee know so that they can attend.

        At this time Personnel Director Comstock met with the Board. Mr. Comstock indicated
that the Board had previously approved an unpaid 60 day leave of absence for Lee Denstad. This
leave has expired and he is now requesting a leave under Article XVI, Section F of the AFSCME
contract, which provides that “At the request of a licensed physician, employees who have
exhausted all sick leave benefits shall be granted a leave of absence not to exceed six months;
such leave may be extended at the discretion of the Employer.” Mr. Comstock requested that the
Board take action to approve a six month leave of absence for Lee Denstad. Motion was made
by Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to approve
the same.

        Personnel Director Comstock stated that the Board has previously approved filling the
position of Investigator (Drug Officer). The County has recruited internally for this position and
three employees within the Sheriff‟s Department have applied. A committee will be conducting
interviews this afternoon. They expect to fill the position from this pool of applicants. This will
leave a subsequent vacancy in the position of Deputy Sheriff. He requested that the Board take
action to authorize advertising to fill this vacancy, if the committee decides to offer the
Investigator position to one of the internal candidates. Motion was made by Commissioner Graf,
seconded by Commissioner Bjerke and unanimously carried to approve the same.

REGULAR SESSION                                                                       Page      86
.




        Sheriff Ely stated that the Board is invited to attend a Regional Radio Board meeting on
April 16th in Rochester. He asked that the Board take action to appoint a delegate and an
alternate to the Regional Radio Board. Motion was made by Commissioner Graf, seconded by
Commissioner Corcoran and unanimously carried to appoint Commissioner Bjerke as delegate.

      Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke and
unanimously carried to appoint Commissioner Connery as alternate to the Regional Radio Board.

       File No. 3 -- Zoning Administrator Scanlan reported on the following application for a
variance which was approved by the Board of Adjustment:

            Randy Steinfeldt - Houston Township - Variance of 740 feet to meet the
            required 1320 foot setback from an existing home to expand a feedlot.

        File No. 4 -- Zoning Administrator Scanlan reported on three Conditional Use Permits
which are being recommended by the Planning Commission. Motion was made by
Commissioner Graf, seconded by Commissioner Connery and unanimously carried to approve
the issuance of the following Conditional Use Permits, subject to the stipulations stated on the
permits:

            Duane Von Arx - Houston Township - Operate a commercial outdoor
            recreation area

            Marie Agren - Wilmington Township - Home occupation - bed and
            breakfast home and vacation rental

            Barb Burroughs - Money Creek Township - Install trailer in ag district –
            hardship housing

        File No. 5 -- Mr. Scanlan reported on an application for a Conditional Use Permit on
behalf of Curt Roverud, Spring Grove Township, to expand a rock quarry and do mineral
extraction in an agricultural district. Neighbors testified regarding concerns of possible
contamination of wells, water runoff, the boundary for the quarry, etc. The matter was tabled
and the Planning Commission will view the site on April 24th .

       File No. 6 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
approve the issuance of the following zoning permits:

            Dennis Kinstler - Money Creek Township - Build hay shed (30‟ x 60‟)

            Michael Burg - Mayville Township - Build 2 grain bins (27,000 b.u. each)
            36‟ diameter x 42‟ high

REGULAR SESSION                                                                    Page      87
.




            Robert Eugene Tessmer - Mayville Township - Build grain bin (14,000
            b.u.)

            Money Creek Haven Inc. - Money Creek Township - Build 2 story office
            building w/4 Rentals (1st floor 30‟ x 82‟) (2nd floor 30‟ x 44‟)

      Chairperson Thompson stated that the meeting scheduled with Jim Mulder for next
Tuesday at 1:00 p.m. will be held at the Four Seasons Community Center.

       File No. 7 -- Auditor Johnson requested that the Board approve an abatement on behalf of
Kevin J. & Melissa D. Disbrow, Parcel No. 25.2024.000, representing a special assessment in the
amount of $1,787.78. This amount was paid in full on 12/26/07, however, it was inadvertently
not removed from the tax system prior to the calculation of the 2008 taxes. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
said abatement.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Connery and
unanimously carried to recess the meeting.

       The time being 10:00 a.m., a public hearing was convened to consider the adoption of
ordinances governing Wildcat Park and Botcher Park.

       Personnel Director Comstock stated that, by state statute, the County has the right to
adopt ordinances regarding the use of public facilities such as a park. Wildcat Park is owned by
the Corps of Engineers and leased to Houston County. The park must be operated in conjunction
with Corps of Engineers regulations. The Corps has waived some restrictions with respect to
seasonal camping. Corps of Engineers rules allow a limited number of consecutive days at any
campsite, however, they have allowed a limited number of seasonal campsites at Wildcat Park.
The Corps of Engineers wants the park to be available to everyone with equal access. The
ordinance is being proposed to make it easier for the County to operate the park and for law
enforcement to site any ordinance violation that takes place. Without an ordinance, law
enforcement has limited authority. While the County has had park rules in place for many years,
they have not previously taken this to the next level of formality by putting them in ordinance
form.

       Mr. Comstock stated that this public hearing is also being held regarding adopting an
ordinance governing Botcher Park which is located in Sheldon Township off County Highway
#10. Botcher Park is a day use facility only. It is not a camping facility. The ordinance was
drafted to be consistent with the terms and conditions under which the park was gifted to
Houston County and it is to be maintained in its natural and pristine condition.

       Mr. Comstock asked whether there were any comments from members of the public
regarding either of the two proposed ordinances.

REGULAR SESSION                                                                    Page      88
.




        Don Link stated that the proposed rules state that flag poles are not allowed in the park.
He indicated that many good people died for that flag and he felt this rule was inappropriate. Mr.
Comstock responded that the ordinance is simply trying to prevent permanent structures, such as
a flag pole that is cemented in. Flags on brackets or displayed in a non-permanent way are
certainly welcomed in the park.

        Don Link stated that the 2007 revenue and expense statement for Wildcat Park indicates a
revenue of $76,500. The 18 seasonal sites generated $27,800. He indicated that in 2008 the
seasonal sites will generate $31,400 in revenue, or an average of $1,744 per site. He stated that
there are 44 daily sites which generate approximately $800 per site. As a taxpayer, he indicated
that it would make sense to add another 20 seasonal sites, as this would result in an increase of
over $16,000 in revenue. Personnel Director Comstock responded that the Corps of Engineers
has a restriction on seasonal sites, and he felt we are very fortunate that they have allowed us the
18 we currently have. The County is currently negotiating with the Corps in an attempt to add an
additional 7 seasonal sites. The Corps wants the park to be available for transient use. Mr. Link
indicated that there are only 3 weekends per year when all of the daily sites are in use.
Commissioner Corcoran reiterated that the Corps used to allow no seasonal sites. The County
negotiated with the Corps and they subsequently agreed to allow a limited number of seasonal
sites. The County is currently negotiating to increase this number. Maintenance Foreman
Molling stated that he spoke with Dick Otto, Corps of Engineers, in this regard. Mr. Molling
was instructed to draft a plan of the proposed new seasonal sites and Mr. Otto will forward it to
the St. Paul office. Mr. Otto thought the County would receive an answer within 10 days of
submitting the proposal as to whether the Corps would agree to these additional seasonal sites.
The County had initially proposed adding more seasonal sites in one location, however, Mr. Otto
strongly recommended against this. He felt the St. Paul office would be more likely to approve
additional sites if they were scattered throughout the park. The Corps is revisiting their rules,
and he felt that they would agree to 30%, and perhaps even 35%, of the campsites being seasonal
sites. Mr. Molling stated that, with the additional 7 sites, we would be very close to that amount.

        Randy Mell stated that he is a long-term resident of Caledonia. He expressed his
appreciation for the improvements Houston County has made to the park with respect to
electricity, water, etc. He and his wife used the transient sites for a number of years as weekend
sites. They asked to be added to the waiting list for a seasonal site. They were on the waiting
list approximately two years. Once they obtained a seasonal site, they purchased a fifth wheel so
they could spend the summer season at Wildcat Park. They have rotated to different sites over
the years. He indicated that there is a sense of neighborhood at Wildcat and that it is a self-
patrolling, peer pressure neighborhood. Many of the seasonal campers are long-term renters and
they understand that they cannot install platforms and permanent devices. He felt that idea of
going to a lottery system would be hurtful because of the investment he has made in his camper.
He indicated that the current system seems to be working, and he inquired why the County was
proposing this change. Personnel Director Comstock responded that the Park Committee has
dealt with many comments regarding the waiting list. In the past, this list has been maintained
by the park operators. The previous operator indicated that people ask about being added to the

REGULAR SESSION                                                                        Page      89
.




waiting list, however, when they find out how long it is they decide not to bother. Therefore, he
felt that the current waiting list does not accurately reflect the amount of interest that exists for
seasonal sites. The park is meant to be for everyone‟s enjoyment, and they wish to make it as
fair as possible for everyone to have access. Randy Mell indicated that there is some rotation
going on every year which allows for new seasonal campers. Therefore, he felt this should meet
Corps standards.

         Commissioner Corcoran stated that the Corps has indicated that they will force us to do a
lottery if the waiting list becomes too long or if there is a lot of complaining. With the current
economy, more people are interested in spending their vacations locally, and there is more
interest in the seasonal sites. He indicated that the Corps of Engineers will make a ruling later
this summer on whether they will force the County to go to a lottery system. The County felt
that, in all fairness, they should put the campers on notice that this could happen. If they do go
to a lottery system, they plan to hold the lottery in the fall so everyone knows where they stand
for the next year‟s camping season.

         Randy Mell stated that, if the park would be used for strictly transient camping this would
pose a major problem and 24 hour supervision would be required. Maintenance Foreman
Molling stated that the loss in revenue would also be a big issue, and if that happened we would
be better off giving the park back to the Corps. Commissioner Corcoran stated that the County
has used this as leverage, as the Corps really does not want the park back. Randy Mell stated
that he felt it would be reasonable to bring up to the Corps the fact that the people who have been
there lend stability to the park and there is a rotation system in place. He felt that the waiting list
should be maintained at the Courthouse. He indicated that he did not have any problem with the
system when he was on the waiting list, nor did any of the people present. He felt that
implementing the lottery system would cause mayhem to a certain extent. He reiterated his
appreciation for the improvements the County has made to the park, and asked that the Board
talk to the Corps about the fact that the current system is working. Don Link suggested that the
campers be allowed to meet with the Corps and the Board. Chairperson Thompson indicated that
she felt the Corps would be agreeable to this. Mr. Comstock added that the draft ordinance was
written with the Corps‟ input. Before writing the ordinance, the County obtained copies of
ordinances from other counties, and it is modeled after the Corps rules for running a federal
facility.

        Don Link indicated that he thought the new park manager might be present today, and he
was hoping to find out when the seasonal campers can move into the park. Auditor Johnson
stated that he will contact the manager in this regard.

       Maureen Ellingson stated that she lives by Racine, MN, and drives about 1 ½ hours each
way to come to Wildcat every weekend. As seasonal campers, they appreciate the beautiful area
and try to help take care of it. She indicated that they do things such as raking the beach,
cleaning up the shelter, pulling large logs off the landing, etc. She indicated that having
seasonal campers who care about the park is a positive thing. She stated that there are people
who come from as far away as Milwaukee every weekend to camp at the park. She indicated her

REGULAR SESSION                                                                          Page       90
.




disappointment in the proposed lottery system and stated that she hopes the County will
reconsider this.

        Gary Ellingson stated that, before they obtained a seasonal site, they came down every
other weekend to camp. He indicated that they went through a lot of turmoil to get where they
are. He feels that they have paid their dues. Last year they traded campers, and now they could
lose their site. He indicated that years ago the area around the office was used as overflow and
that worked well.

        Brian Wetterlin stated that he talked to an individual who was on the waiting list for
about a year and was recently offered a seasonal site. Commissioner Corcoran indicated that
they did open up a couple extra sites.

       Maureen Ellingson stated that she called area campgrounds and the normal wait time to
obtain a seasonal site is two years. Also, Goose Island currently has 72 individuals on their
waiting list.

        Randy Mell inquired whether he was allowed to have a tent on his site if his family visits
them at the park. Personnel Director Comstock stated that they have tried to define a camp unit,
and that the manger can use their discretion and make exceptions. Discussion was held on the
limit of two vehicles per site. Mr. Mell indicated this is a good system.

        Gary Ellingson expressed his concern with the noon checkout time on Sundays for
transient campers. He indicated that, while these campers have to be off their site by noon, they
do not leave the park at that time and the parking area and the area around the sewer disposal site
become congested. Maintenance Foreman Molling stated that he is proposing changing the area
where the seasonal campers can park. The area would be fenced off and more secure.

       Jerry Knutson stated that he agrees with the statements made by the other seasonal
campers, and that he is against the lottery. He felt the current seasonal campers should be
grandfathered in. He also suggested that the seasonal campers contact the Corps with their
thoughts in this regard.

        Heather Gray inquired whether a group such as the Boy Scouts could be allowed to hold
target practice at Botcher Park, and if so, who the contact person would be to apply for a permit.
After discussion it was agreed that this would not be a permitted use in Botcher Park.

       At this time the public hearing was adjourned.

       The Board reconvened in regular session.

       File No. 8 -- Discussion was held regarding the proposed ordinances. Motion was made
by Commissioner Connery and seconded by Commissioner Bjerke to adopt Ordinance No. 9
(Park Rules and Regulations - Wildcat Park) as drafted, with the exception that the prior waiting

REGULAR SESSION                                                                       Page      91
.




list will remain in effect, and with the understanding that any rules adopted by the Corps would
take priority. Lengthy discussion was held. After discussion, Commissioner Connery stated that
he would like to amend the standing motion to read that the Board will adopt Ordinance No. 9
(Park Rules and Regulations - Wildcat Park) with the amendment to Appendix C to reflect that
the existing waiting list will continue until 2010, however, if the Corps amends their rules the
County will abide by these amendments. Commissioner Bjerke stated that he is not in agreement
with the amendment, and he would like to withdraw his second to the motion. The motion was
seconded by Commissioner Graf. The motion carried, with Commissioner Bjerke voting in the
negative.

       File No. 9 -- Motion was made by Commissioner Bjerke, seconded by Commissioner
Graf and unanimously carried to adopt Ordinance No. 10 (Park Rules and Regulations - Botcher
Park).

       Commissioner Bjerke reported on a meeting he attended with Kurt Kuhlers, Ken Meyer
and Francis Bruening regarding the 2007 flood. The meeting dealt mainly with the biological
and hydrological aspects of the flood.

        Commissioner Connery reported on a SteadFast meeting he attended. On April 9th they
are asking commissioners to meet prior to the legislative conference to discuss lobbying efforts.
Also, Commissioner Connery reported that a contract with Gundersen Clinic has been executed
making them a preferred provider.

       Commissioner Graf reported on a 7 Rivers conference he attended.

         Chairperson Thompson reported on a meeting with Tom Witt regarding medical issues at
the jail. They are working on getting a contract in place in this regard. Also, Public Health has
assigned a nurse to spend 16 hours per week on jail health.

       Chairperson Thompson reported on a water planning meeting that she and Commissioner
Bjerke attended.

       Commissioner Bjerke reported on a CJC meeting which he and Chairperson Thompson
attended last week. They plan to have a phone conference with Tim Thompson, DOC, regarding
new rules and regulations. Chairperson Thompson added that she is attempting to schedule
another meeting with the City of Caledonia.

      Motion was made by Commissioner Connery, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 10 -- Correspondence to Payroll regarding the hiring
           of Cindy Thorson as a Case Aide for the Human Services Department,
           approving additional hours for Nancy Welsch to fill in during leave of


REGULAR SESSION                                                                     Page      92
.




          absence in Veteran Services and increasing David Erickson‟s FTE from
          ½ to ¾.

                   File No. 11 -- Correspondence regarding a meeting scheduled
          with Jim Mulder scheduled for 4/15/08 at 1:00 p.m. regarding long-
          range planning.

                   File No. 12 -- A notice of tons delivered to Xcel during April
          2008.

                  File No. 13 -- Correspondence to Rick Jackson and Michelle
          Van Beek thanking them for their years of service to Houston County.

       There being no further business, motion was made by Commissioner Bjerke, seconded
by Commissioner Connery and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, April 15, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                     Page   93
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, April 15, 2008                      9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson and David Corcoran

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Engineer Evans;
                   Maintenance Foreman Molling; Chief Deputy Sheriff Yeiter; Recorder
                   Bauer; PHN Director Rock; Reporters Warner, Gray & Popplewell

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to approve the minutes of the April 8, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $165,263.39
              Road & Bridge Fund                                  12,720.47
                                                               ---------------
              Total                                            $177,983.86
                                                               =========

       File No. 2 -- At this time Engineer Evans and Maintenance Foreman Molling met with
the Board and reported on the bids received for the purchase of calcium chloride. The low bid is
that of Univar USA, Inc. in the amount of $0.812 per gallon. Motion was made by
Commissioner Graf, seconded by Commissioner Corcoran and unanimously carried to accept the
low bid of Univar USA, Inc.

      File No. 3 -- Maintenance Foreman Molling reported on the bids received for C.P. 2008-
01 (Maintenance Rock). He recommended accepting the low bid of Bonanza Grain, Inc. in the
amount of $133,577.00. Motion was made by Commissioner Connery, seconded by
Commissioner Corcoran and unanimously carried to accept the low bid of Bonanza Grain, Inc.

       File No. 4 -- Maintenance Foreman Molling reported on the bids received for C.P. 2008-
04 (Pavement Marking). He recommended accepting the low bid of AAA Striping, Inc. in the
amount of $89,614.69.        Motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to accept the low bid of AAA Striping, Inc.


REGULAR SESSION                                                                    Page      94
.




        File No. 5 -- Maintenance Foreman Molling reported on the bids received for C.P. 2008-
02 (Bituminous Seal Coating and Permanent Pavement Marking). Only one bid was received,
being that of Fahrner Asphalt Sealers, Inc. in the amount of $399,280.26. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to accept the
bid of Fahrner Asphalt Sealers, Inc.

        File No. 6 -- Maintenance Foreman Molling reported that he solicited quotes for crack
filling. The low quote was that of Four Seasons Maintenance. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to accept the
low quote of Four Seasons Maintenance.

        File No. 7 -- Maintenance Foreman Molling reported that he also solicited quotes for
crack filling at the airport. The low quote was that of Four Seasons Maintenance. Motion was
made by Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried
to accept the low quote of Four Seasons Maintenance.

        File No. 8 -- Maintenance Foreman Molling reported on bids received for equipment
rental (C.P. 2008-05). He recommended that the Board take action to accept all bids. They will
award work based on availability and price. Motion was made by Commissioner Corcoran,
seconded by Commissioner Graf and unanimously carried to accept all bids.

        Maintenance Foreman Molling reported that two pup trailers are coming up on auction,
and he requested authorization to purchase them if he feels the price is reasonable. He has been
renting them as needed from Bonanza Grain, and he indicated that they will pay for themselves
over a couple of years. Motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to approve the same.

       Maintenance Foreman Molling requested authorization to submit a building permit for
the proposed new Highway Department Building. By applying for the permit now, we should
know if we will get the permit by the time the purchase agreement expires. Motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
approve the same and to authorize the signature of Chairperson Thompson.

        File No. 9 -- Chairperson Thompson reported that Personnel Director Comstock could
not be present today. He is recommending approval of promoting John Tveiten to the position of
Investigator (Drug Officer), pending the hiring of his replacement. Motion was made by
Commissioner Graf, seconded by Commissioner Connery and unanimously carried to approve
the same.

        File No. 10 -- At this time PHN Director Rock met with the Board and requested
approval of a contract with Jim Peterson for chore services. Motion was made by Commissioner
Graf, seconded by Commissioner Corcoran and unanimously carried to approve the contract and
to authorize the signature of Chairperson Thompson.


REGULAR SESSION                                                                    Page      95
.




        PHN Director Rock reported that in March the CPA completed the cost report which
states that skilled nursing visits are costing Houston County $146.80 per hour, and we are
currently charging $120.00 per visit. The cost of a Home Health Aide visit stayed the same, and
we are currently charging $49.00 per visit. PHN Director Rock requested that the Board take
action to increase the fee for skilled nursing visits to $140.00 per visit. Motion was made by
Commissioner Graf, seconded by Commissioner Corcoran and unanimously carried to approve
the same.

       PHN Director Rock reported that the media has reported on the recent cases of
Meningitis in Houston County and in New Albin, IA. Chief Deputy Yeiter reported that Public
Health provided training on blood-borne pathogens for law enforcement.

       File No. 11 -- Auditor Johnson reported on an error in a legal description of a parcel of
land located in Hokah City. This parcel was tax forfeited in 1998. The MN Department of
Revenue has agreed to cancel the tax forfeiture. Motion was made by Commissioner Corcoran,
seconded by Commissioner Graf and unanimously carried to adopt the following resolution:

                                  RESOLUTION NO. 08-23

      WHEREAS, Houston County tax forfeited Parcel #23.0220.001 in 1998 due to the non-
payment of taxes; and

        WHEREAS, it has come to the attention of the Auditor and Recorder that this parcel was
forfeited in error;

     NOW, THEREFORE, BE IT RESOLVED that the Houston County Board of
Commissioners hereby approves the cancellation of forfeiture for Parcel #23.0220.001.

        Commissioner Connery reported on a Semcac meeting he attended last night. They
toured the re-built facility in Rushford. They also reviewed the annual report. Patty Miller was
re-elected as President of the Semcac Board of Directors.

       Commissioner Connery reported on the Township Officers meeting which several
commissioners attended. Chairperson Thompson stated that she gave a report on the AMC
conference which included a joint meeting of townships, cities, schools and counties.

       Chairperson Thompson reported that counties are being encouraged to begin the
budgeting process earlier this year, as next year the state‟s budget shortfall is expected to be
worse than this years.

       Commissioner Graf reported that he and Chairperson Thompson attended the AMC
Legislative Conference last week. There is a lot of pressure against StedFast. Representative
Tschumper drafted an amendment to the bill to try and extend it.


REGULAR SESSION                                                                    Page      96
.




       Commissioner Graf reported on an MCIT meeting he attended. A representative of Wells
Fargo explained funding issues nationwide. Also, the person in charge of the Employee
Assistance Program reported that Houston County‟s utilization of this program is at 2.16%,
which is up from 1.82% the previous year.

      Motion was made by Commissioner Corcoran, seconded by Commissioner Graf and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 12 -- Correspondence to Kevin & Melissa Disbrow
          regarding the approval of their abatement.

                   File No. 13 -- Correspondence to department heads and
          accountants indicating that the meeting with Jim Mulder scheduled for
          4/15/08 will be held at the Four Seasons Community Center.

                  File No. 14    -- Notice of Publication of the Enactment of
          Ordinance #9 & #10.

       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Connery and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, April 22, 2008.

                                          BOARD OF COUNTY COMMISSIONERS
                                          HOUSTON COUNTY, MINNESOTA

                                          By: ________________________________
                                                 Ann Thompson, Chairperson

Attest: ___________________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                   Page   97
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, April 22, 2008                       9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Personnel Director
                   Comstock; Sheriff Ely; Reporters Warner, Gray & Popplewell

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the April 15, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

               County Revenue Fund                              $67,319.67
               Road & Bridge Fund                                 13,868.77
                                                                --------------
               Total                                            $81,188.44
                                                                ========

        Sheriff Ely stated that he budgeted to replace 3 cars in 2008. They have ordered two cars
to date. He requested authorization to purchase a third car at this time through the state bid. If
our order is placed by the end of April, we can get a 2009 vehicle for the 2008 price. The Board
expressed their concern regarding the increase in gas prices and the need to purchase fuel
efficient vehicles. After discussion, motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to authorize the purchase of a third squad car.

        At this time Personnel Director Comstock met with the Board. He reported that Houston
County is scheduled to begin contracting with the state for Court Services effective July 1, 2008.
The two county probation officers will become state employees. However, they will be without
health insurance coverage for 45 days until coverage becomes available from the state. He
requested that they be allowed to remain on the County‟s insurance until they are eligible for
coverage from the state. Motion was made by Commissioner Connery, seconded by
Commissioner Graf and unanimously carried to approve the same. It was pointed out that the
support staff will remain county employees.


REGULAR SESSION                                                                      Page      98
.




        Personnel Director Comstock reported that Richard Sather, Appraiser in the Assessor‟s
Office, has submitted notice that he will be retiring. His last day of employment with Houston
County will be May 30, 2008.           Personnel Director Comstock and Assessor Dybing are
recommending advertising for an Appraiser Trainee. The training requirements for appraisers
are established by the Minnesota Department of Revenue. Commissioner Connery inquired
whether anyone in the department is qualified to fill in if Assessor Dybing is absent. Mr. Dybing
stated that he and Personnel Director Comstock have discussed the possibility of creating a Chief
Deputy position. Discussion was held. After discussion, motion was made by Commissioner
Connery, seconded by Commissioner Corcoran and unanimously carried to approve advertising
for the position of Appraiser Trainee.

        Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to accept the resignation of Richard Sather and to draft a letter thanking him
for his years of service to Houston County.

       Auditor Johnson reported that the Secretary of State‟s election training is scheduled for
June 10th and 11th in St. Cloud. Therefore, he requested that the Board take action to cancel the
June 10th Board meeting so Auditor‟s Office staff can attend. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
the same.

      File No. 2 -- Discussion was held regarding an invitation to a Design Team meeting in
Rushford on Friday, April 25th, and Saturday, April 26th.

        Chairperson Thompson stated that the Board needs to discuss long term planning for
departments. There has been discussion on moving some departments to the new Highway
Department facility. She felt it was necessary to determine how this affects our space needs.
She felt that a work session should be scheduled for the full County Board. Commissioner
Connery stated that the first issue to be discussed should be the Auditor and Treasurer positions.
After discussion, it was agreed to schedule a working/planning session for April 29th.

        Commissioner Bjerke reported that he, Commissioner Connery and Chief Deputy Sheriff
Yeiter attended the Regional Radio Planning Board meeting in Rochester. They discussed the
purpose of the program, and indicated that they are not pushing counties to go to 800 megahertz.
They stressed the importance for a central group, such as the radio board, to get everyone on
track. Their board elected officers, and have a meeting scheduled in May to discuss budget
issues. Grant funding is available to perform an analysis of our needs in this area. It is required
that all areas have 95% coverage. They have added a fourth tower in our area, and they are
talking about working cooperatively with Wisconsin and Iowa for tower space to provide better
coverage for the region.




REGULAR SESSION                                                                       Page      99
.




       Chairperson Thompson reported on the long-range planning session held last Tuesday
afternoon with Jim Mulder, AMC. She stated that it was a very interesting session regarding
regionalization and changes that can be expected in the near future.

       Chairperson Thompson reported on a Collaborative meeting held last week. It appears
that we will not have to repay any of the funding received in the past. The Governing Board is
meeting at 9:00 a.m. on Thursday, June 5th, regarding the coordinator position.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 3 -- Correspondence to the MN Department of Public
          Safety regarding the resignation of Pete Johnson (Deputy Registrar).

                   File No. 4 -- Correspondence from Representative Tschumper
          regarding the status of the bill to make the offices of Houston County
          Auditor and Treasurer appointed.

                   File No. 5 -- A notice of a Caledonia City public hearing
          regarding the proposed expansion of an existing manufactured home
          park, East Side Mobile Park.

       There being no further business, motion was made by Commissioner Connery, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, April 29, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                    Page   100
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, April 29, 2008                        9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:     Auditor Johnson; Chief Deputy Auditor Meiners; County Attorney Jackson;
                    Environmental Services Director Frank; Emergency Manager Kuhlers;
                    Recorder Bauer; Maintenance Foreman Molling; Sheriff Ely; Chief Deputy
                    Sheriff Yeiter; Reporters Warner & Popplewell

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the April 22, 2008 meeting.

        At this time County Attorney Jackson met with the Board. He stated that he will be
leaving office in approximately one month. He asked that the Board allow him to transfer the
case of Pahnke vs. Home Apartments, Anderson Moving & Storage and Houston County to the
firm of Quinlivan & Hughes, P.A. This case was being handled by Quinlivan & Hughes, P.A.
when it was covered by MCIT. However, the court dismissed one of the claims against Houston
County, and the remaining claim is not covered by MCIT. He assumed the case once MCIT was
no longer involved. The matter is scheduled for trial in approximately November 2008. He
indicated that there will be a learning curve once someone is appointed to fill out his term.
Since the firm of Quinlivan & Hughes, P.A. is familiar with the case, he felt it would be in the
best interest of Houston County to transfer the case back to that firm. He stated that, in order to
protect the County‟s interests in terms of financial liability, he felt it would be best to have
someone who specializes in civil litigation handle this case. After discussion, motion was made
by Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to
approve transferring said case back to the firm of Quinlivan & Hughes, P.A.

        County Attorney Jackson indicated that there are several other cases which he felt should
also be turned over to firms we have used in the past. He felt this would allow for a smooth
transition for the new County Attorney. It was agreed that County Attorney Jackson would
touch base with the firms he will be recommending, and then report back to the Board for their
approval.




REGULAR SESSION                                                                       Page     101
.




         At this time Environmental Services Director Frank met with the Board. He stated that
last fall he informed the Board that the semi-trailer at the Spring Grove drop-site was in poor
condition and will no longer be DOT certified. He asked Maintenance Foreman Molling to assist
him in finding another semi-trailer that will meet the department‟s needs. Mr. Molling has
located a 1995 trailer in Albert Lea for a cost of $5,000. This trailer is already DOT certified.
After discussion, motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to authorize the purchase of said semi-trailer.

        File No. 1 -- Emergency Manager Kuhlers requested that the Board take action to
approve a Grant Contract with the State of Minnesota, Division of Homeland Security and
Emergency Management in connection with the funding for the Hazard Mitigation Plan. Motion
was made by Commissioner Corcoran, seconded by Commissioner Graf and unanimously
carried to approve the Grant Contract and to authorize the signatures of Chairperson Thompson
and Auditor Johnson.

      Emergency Manager Kuhlers reported that Houston County is eligible for an additional
$100,000 in funding from the DNR for debris removal from streams.

        Commissioner Connery reported on a StedFast meeting which he attended last week.
Another StedFast meeting is scheduled for May 8th. He inquired what the Board‟s wishes are if a
vote is taken on whether to continue with StedFast. It is Commissioner Connery‟s
recommendation that we continue. He indicated an actuarial analysis was performed and we
should be able to run for five years and then show a greater return. With the default language
which passed in the Senate yesterday, we may show a profit sooner. He indicated that Senator
Ropes did an excellent job lobbying on behalf of StedFast. It was agreed to draft a letter to
Senator Ropes thanking her for her efforts. It was also the consensus of the Board that, if a vote
is taken, they are in support of continuing with StedFast. Commissioner Connery reported that
default language is also needed at the federal level.

        Commissioner Bjerke reported on a health care summit which he attended yesterday. He
indicated that it appears everyone is leaning toward a single payer system, similar to Medicare.
While the Universities can currently accommodate more nursing students, there is difficulty
accommodating all of the students for their clinical training. Commissioner Graf added that
there is expected to be a shortage of teachers at the universities to teach nursing students.

       Commissioner Corcoran reported on a Zoning meeting which he attended last week.

        Commissioner Connery stated that he would like to look into strategic planning for the
Board and department heads. He suggested utilizing a firm which was used for both ABLE and
HVMHC. There would be three 3-hour sessions, with homework to be done between sessions.
The cost would be $4,000. He felt this planning would be very beneficial as we are talking about
reorganization and restructuring. After discussion, it was agreed to schedule an appointment for
this firm to make a presentation to the Board next Tuesday.


REGULAR SESSION                                                                      Page     102
.




       There being no further business, motion was made by Commissioner Bjerke, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, May 6, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                             Page    103
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, May 6, 2008                    9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:     Auditor Johnson; Chief Deputy Auditor Meiners; Engineer Evans;
                    Maintenance Foreman Molling; Personnel Director Comstock;
                    Environmental Services Director Frank; Zoning Administrator Scanlan;
                    Emergency Manager Kuhlers; Surveyor Walter; Bev Jiardina.; Diane
                    Amundson; Surveyor Walter; Recorder Bauer; Duane Zenke; Joyce Iverson;
                    Reporters Warner, Gray & Popplewell

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the April 29, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

               County Revenue Fund                              $126,339.79
               Road & Bridge Fund                                  32,963.98
                                                                ---------------
               Total                                            $159,303.77
                                                                =========

       At this time Engineer Evans and Maintenance Foreman Molling met with the Board.
Engineer Evans requested authorization to advertise for the CSAH#31 bridge project. Engineer
Evans reported that he worked with the state to secure bond funding for this project. Motion was
made by Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried
to authorize advertising for said project.

        Maintenance Foreman Molling stated that he will be filling the 100 LL fuel barrel at the
Airport prior to the upcoming open house. In April 2007 it was filled with 1,000 gallons and was
refilled in August 2007. There are approximately 485 gallons remaining at this time. He
solicited quotes for obtaining fuel, with the low quote being that of Newton Oil. He indicated
that the jet fuel barrel was filled last fall. Jet fuel has a longer shelf life than the 100 LL fuel,
however, he felt it should be used by this fall. He thought it could be blended with our own fuel
REGULAR SESSION                                                                         Page     104
.




to be used at the Highway Department if necessary. Discussion was held regarding the fact that
some of the flyers still have private fuel barrels at the airport. The Board expressed their concern
regarding the County‟s liability in this regard. Mr. Molling suggested that this issue be
addressed when the hangar leases come due in 2009. It was also agreed to review the current
lease to determine whether it could be amended at this time. After discussion, motion was made
by Commissioner Connery, seconded by Commissioner Graf and unanimously carried to
authorize accepting the low quote of Newton Oil for filling the 100 LL fuel barrel at the Airport.

        Maintenance Foreman Molling reported that Sheriff Ely inquired several weeks ago
whether there was an area available for storing training boxes used in connection with training
drug dogs. These have been stored at the fairgrounds, however, they have been asked to move
them. Mr. Molling suggested storing them west of the Murphy hangar at the Airport. After
discussion, the Board directed Mr. Molling to check with Meade and Hunt to determine whether
they felt storing them in this area would be a conflict with the airport.

        Maintenance Foreman Molling stated that he had previously discussed the possibility of
connecting the Spring Grove shop with the Spring Grove City sewer system. He has checked
into this, and found it to be cost-prohibitive, as a lift station would be required. He indicated that
our only alternative is to install a 3,000 gallon holding tank connected to floor drains in the shop.
The estimated cost of the holding tank is $3,100. In addition, he estimated a cost of
approximately $3,100 to install the tank. Engineer Evans stated that we need to comply with
regulations, and this is the only viable option. Motion was made by Commissioner Bjerke,
seconded by Commissioner Graf and unanimously carried to approve the same.

         Maintenance Foreman Molling reported that the Caledonia City public hearing in
connection with the proposed new Highway Department building has been rescheduled to May
19th at 6:30 p.m.

         File No. 2 -- Discussion was held regarding correspondence received from the Corps of
Engineers approving six additional campsites for Wildcat Park. Discussion was also held
regarding a copy of correspondence which the Corps of Engineers sent to individuals in response
to their letters concerning seasonal camping at Wildcat Park. It was agreed to laminate the letter
regarding seasonal camping and have it available at the front desk at Wildcat Park for the
public‟s information. Personnel Director Comstock and Auditor Johnson reported on a
conference call held last Friday with the Corps of Engineers in La Crescent and St. Paul
regarding the seasonal camping issue. The Corps made it clear that they have made an exception
to their rules by allowing seasonal camping at Wildcat Park. This is contrary to Corps of
Engineers Rules, as they normally allow only 14 days of continuous camping on a site. The
Corps intends to approach their governing board to discuss drafting a policy allowing continuous
camping in Corps owned parks. They were very clear that the Corps will utilize a lottery type
system for seasonal camping. Mr. Comstock suggested that the additional seasonal sites, which
the Corps has agreed to allow, be located in the southern end of the park. Maintenance Foreman
Molling reported that a Corps of Engineers representative was at the park recently and concurred
that it was the Corps‟ preference to have the additional seasonal sites located in the southern end

REGULAR SESSION                                                                          Page     105
.




of the park. Reporter Warner inquired as to when the lottery system will become effective. Mr.
Comstock indicated that the lottery will become effective for the 2010 camping season.

         File No. 3 -- At this time Zoning Administrator Scanlan met with the Board. Mr. Scanlan
reported on an application on behalf of Al and Paul Hagen, Spring Grove Township, for a
variance of 130 feet to meet the required 1,320 foot setback from an existing home to a new
feedlot. The Feedlot Advisory Committee met previously and made the determination that it had
the potential to negatively affect neighboring property values. The Board of Adjustment met at
the site on April 24th and viewed the site. After viewing the site, they met back at the courthouse
for a public hearing. It was the Board of Adjustment‟s conclusion that they agreed with the
findings of the Feedlot Advisory Committee that the site had the potential to negatively affect
neighboring property values, therefore they denied the variance.

       File No. 4 -- Zoning Administrator Scanlan reported that two hearings were held on two
separate Conditional Use Permit applications on behalf of Al and Paul Hagen, Spring Grove
Township, to build two barns in conjunction with operating/expanding a feedlot over 300 animal
units. The first hearing was in conjunction with the variance application which was denied. The
Planning Commission recommended denying this permit because of the denial of the variance by
the Board of Adjustment. After discussion, motion was made by Commissioner Corcoran,
seconded by Commissioner Connery and unanimously carried to deny the Conditional Use
Permit because of the denial of the variance by the Board of Adjustment.

        File No. 5 -- Zoning Administrator Scanlan reported that a second public hearing was
held regarding an application on behalf of Al and Paul Hagen, Spring Grove Township, to build
a barn in connection with operating/expanding a feedlot over 300 animal units for a second site
located up the hill from the first site. Mr. Scanlan indicated that a neighbor to the west indicated
that they were not opposed to the barn, however, they recommended installing biofilters. The
Planning Commission found that this site met all of the requirements for setbacks, etc., and voted
to recommend approval of this site subject to the installation of biofilters and with the stipulation
that the manure be injected into the ground and not spread on top. Commissioner Corcoran
reported that, if both proposed buildings had been approved, the applicants would have had to go
through the process for an Environmental Assessment Worksheet because it would have been
over 1,000 animal units. Discussion was held.

       After discussion, motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to approve the issuance of the following
Conditional Use Permits:

             Al and Paul Hagen - Spring Grove Township - To operate/expand a feedlot
             over 300 A.U. (Second site located on the hill)

             Tara Gerard - Wilmington Township - Run a Level I Home Occupation -
             Cosmetology Salon


REGULAR SESSION                                                                         Page     106
.




            Chris Hoiland - Yucatan Township - Build a house on less than 40 acres in
            an ag district.

            Jason and Kelly Gordon - Mayville Township - Build a house on less than
            40 acres in an ag district.

       Zoning Administrator Scanlan reported on an application on behalf of Curt Roverud,
Spring Grove Township, to expand a rock quarry and do mineral extraction in an ag district. Mr.
Scanlan indicated that this application was continued, as a hydrologist from the State of
Minnesota will view the site on May 14th. He indicated that Roverud has an up-to-date permit
from the MPCA that regulates things such as sedimentation and water runoff issues.

       File No. 6 -- On the recommendation of the Planning Commission, motion was made
by Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried to
approve the issuance of the following zoning permits:

            James and Faith Norman - Wilmington Township - Build garage (28‟ x
            40‟)

            Bruce Norton - Yucatan Township - Build addition to house - no new
            bedrooms (20‟ x 36‟)

            Norlin Hein - Jefferson Township - Replace existing trailer house (16‟ x
            80‟)

            George and Tammy Mauss - Jefferson Township - Build porch (8‟ x 28‟)

            Augedahl Construction - Caledonia Township - Build house (34‟ x 58‟)
            garage (32‟ x 32‟)

            Duane Thomford - Caledonia Township - Build addition on house - utility
            room (10‟ x 8‟)

            Gallagher Acres LLP, Winnebago Township - Build parlor (32‟ x 44‟)
            holding pen (64‟ x 32‟) milk house (16‟ x 16‟) utility room (16‟ x 24‟)

            Stanley Meyer - Winnebago Township - Build open front cattle/hay shed
            (70‟ x 99‟)

            Bruce Mierau - Money Creek Township - Change in use of structure -
            garage to dwelling (24‟ x 40‟)

            Pat McCabe - Union Township - Build house (56‟ x 36‟) covered porch
            (50‟ x 8‟) garage (28‟ x 28‟)

REGULAR SESSION                                                                       Page   107
.




        At this time Personnel Director Comstock and Surveyor Walter met with the Board and
requested authorization to hire up to two temporary/seasonal helpers to assist with the various
surveying projects for the 2008 construction season to be used as needed, and as the Surveyor‟s
budget permits. Surveyor Walter indicated that he had budgeted for one summer helper and one
intern. The intern was arranged through a college, and there ended up being no cost to Houston
County for that position. Therefore, he has additional funding in the budget. He plans to hire
Cole Kelleher as the primary summer helper. Cole has worked in the department in the past.
There is additional funding in the budget to allow hiring a second helper for approximately 6
weeks. Surveyor Walter indicated that he has an individual tentatively hired who is graduating
from college with a degree in GIS and Geography, and is considering going back to school for
surveying. He stated that this individual is also applying for another position, so he is unsure yet
whether he will accept this temporary position. The Board inquired who would supervise these
two temporary employees. Surveyor Walter indicated that he and/or his assistant will provide
supervision. However, Cole Kelleher has enough experience in the department and is familiar
with the equipment, therefore, he indicated that he would feel comfortable allowing him and the
other temporary helper to work together without supervision some of the time. Surveyor Walter
indicated that his office is receiving numerous requests from landowners regarding section
corners which were lost in the flood, and he felt it was very important to start inventorying them.
After discussion, motion was made by Commissioner Connery, seconded by Commissioner Graf
and unanimously carried to authorize the Surveyor‟s Office to hire up to two temporary/seasonal
employees.

       Personnel Director Comstock requested that the Board take action to hire Arlie Blexrud
as a VSO driver to be used on an as needed basis. Motion was made by Commissioner
Corcoran, seconded by Commissioner Connery and unanimously carried to approve the same.

        File No. 7 -- Personnel Director Comstock stated that the Board previously adopted a
resolution approving transitioning to a Minnesota Department of Corrections (MN DOC)
contract option for Probation Services. The MN DOC is requesting that Houston County sign an
agreement in this regard. Mr. Comstock stated that he has given a copy of the proposed
agreement to County Attorney Jackson for his review, but has not yet received a response. After
discussion, motion was made by Commissioner Connery, seconded by Commissioner Corcoran
and unanimously carried to approve the Agreement and to authorize the signature of Chairperson
Thompson, subject to the approval of County Attorney Jackson.

        Personnel Director Comstock reported that four applications were received for the
position of Interim County Attorney and he is proposing that all four applicants be interviewed.
After discussion, it was agreed to schedule the interviews starting at 8:30 a.m. on Monday, May
12th.

      File No. 8 -- Personnel Director Comstock reported that the Information Systems
Department has made the necessary changes to our computer network which will allow the
County‟s e-mail system to be accessed from any computer that is connected to the internet. By

REGULAR SESSION                                                                        Page     108
.




making these changes, specific staff can now be granted permission to check their County e-mail
from home. However, he is proposing that this permission only be granted to the department
heads and any supervisors who the department head determines may benefit from the ability to
access the County‟s e-mail system from home. He is requesting the Board‟s approval of this
addendum to the computer user‟s policy providing for remote access. After discussion, motion
was made by Commissioner Connery, seconded by Commissioner Corcoran and unanimously
carried to approve the same.

       Personnel Director Comstock requested that the Board take action to hire Jessica
Zibrowski and Mary Breault as matrons for transporting female prisoners. Motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
approve the same.

        File No. 9 -- Personnel Director Comstock reported that last week it was necessary to
close the east entrance to the courthouse because two pieces of trim fell from the roof/steeple and
landed near the steps and sidewalk. Each piece had several nails sticking through it, and the
wood that the trim is nailed to appears to have become rotten. There is also another piece of trim
that is hanging and about to fall. Other pieces of trim have fallen within the past year. He
indicated that this is a serious problem that has to be addressed, and he suggested that we look
into a permanent solution. He suggested utilizing the architects involved with the proposed
Criminal Justice Center Project to draft specifications for a new roofing and trim system that
would match the CJC if it were to be built adjacent to the courthouse. Lengthy discussion was
held. After discussion, it was agreed that Personnel Director Comstock will work with Building
Maintenance to get someone with a boom truck to remove the loose pieces or fasten them down.
It was further agreed that Chairperson Thompson will contact the architect regarding drafting
specifications for a long-term solution.

        File No. 10 -- At this time the board recessed to hold a Joint Board of Health meeting
with Fillmore County by teleconference.

       The Board reconvened in open session with all members present.

        File No. 11 -- At this time Emergency Manager Kuhlers met with the Board. He reported
that Houston County had previously received a grant in the amount of $500,000 for debris
removal from residences and farms from the August 2007 flood damage. We have been
approved for an additional $200,000, therefore, he requested that the Board take action to
approve Amendment No. 1 to Grant Contract 2000-11926 reflecting these additional funds.
Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and unanimously
carried to approve the same.

        File No. 12 -- At this time Diane Amundson, representing Express Business Solutions,
met with the Board. She indicated that she has worked with Commissioner Connery on a couple
of strategic planning projects, one for HVMHC and one for ABLE, Inc. She also does leadership
team development conflict resolution and planning. Her strategic planning projects focus on

REGULAR SESSION                                                                       Page     109
.




what an organization wants to become in three to five years. She indicated that the vision of an
organization is their ultimate goal, or what they want their organization to look like. Their
mission involves the steps they need to take to make that vision a reality. There would be four 3-
hour sessions involving the Board and department heads. She felt that each session should be
scheduled not more than 3 weeks apart. She generally meets with the organization six months
after the strategic planning is complete to follow up on what has been done to follow through
after the planning process has been completed. It is up to the organization to keep the issue alive
to ensure that change happens. Commissioner Graf requested a list of references he could
contact. After discussion, it was agreed to place this on the agenda for a decision at next
Tuesday‟s meeting.

        File No. 13 -- At this time Joyce Iverson met with the Board and presented information
regarding the Houston County Flood Recovery Business Loans. To date, the loans approved
and/or pending total $1,652,966.89. The state is asking for a final “not to exceed” figure of
funds which we expect to use under this program. She is recommending setting the “not to
exceed” figure at $1,750,000. To date, only three projects have been finalized, however, there
are various additional projects pending. After discussion, motion was made by Commissioner
Corcoran, seconded by Commissioner Connery and unanimously carried to approve a “not to
exceed “ figure of $1,750,000.

       At this time Duane Zenke met with the Board and requested approval of the plat of
Miller‟s Corner Industrial Subdivision, located in La Crescent Township. Recorder Bauer was
present and indicated that a letter from the DOT is required to be filed when a plat is filed that
abuts a state highway. Mr. Zenke indicated that he has a letter from the DOT in this regard.
Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to approve the plat and to authorize the signature of Chairperson Thompson.

        File No. 14 -- Received and filed was a Minnesota Lawful Gambling Application for
Exempt Permit on behalf of Caledonia “Touchdown” Club for an event to be held at Ma Cal
Grove, located in Caledonia Township, on May 31st. The permit has been approved by the
Caledonia Town Board. Motion was made by Commissioner Connery, seconded by
Commissioner Bjerke and unanimously carried to approve the same and to adopt the following
resolution:



                                   RESOLUTION NO. 08-24

       BE IT RESOLVED that the Houston County Board of Commissioners does hereby
approve the Minnesota Lawful Gambling Application for Exempt Permit on behalf of the
Caledonia “Touchdown” Club for gambling activities to be conducted at the Ma Cal Grove
Country Club in Caledonia Township.



REGULAR SESSION                                                                       Page     110
.




       File No. 15 -- Auditor Johnson reported on an application for snowmobile trail funds on
behalf of Gopherland Trail/Caledonia/Snowmobile Club. Motion was made by Commissioner
Bjerke, seconded by Commissioner Connery and unanimously carried to approve the same and
to adopt the following resolution:

                                   RESOLUTION NO. 07-25

       BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the Gopherland Trail/Caledonia/Snowmobile Club
and authorizes the Board Chairman and the County Auditor to sign an agreement with the
Department of Natural Resources.

       File No. 16 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Bjerke and unanimously carried to approve the minutes of the work session held April 29, 2008.

        File No. 17 -- Auditor Johnson reported that the Extension Office is replacing the sign in
front of their office and a city zoning permit is required. Motion was made by Commissioner
Corcoran, seconded by Commissioner Connery and unanimously carried to authorize the
signature of Chairperson Thompson on the Zoning Permit Application.

         Chairperson Thompson stated that last week the Board met to discuss filling the vacant
County Auditor position for the interim, due to the retirement of Pete Johnson. The Board
received information regarding the positions of Auditor and Treasurer and discussed what other
counties are doing with regard to these positions. Options were discussed. It was agreed that the
Board would review the materials prior to today‟s meeting. She asked for a discussion and the
Board‟s ideas for filling the Auditor‟s position. Commissioner Bjerke stated that this is an
election year, and he felt it was important to have someone with experience take over. Also, he
felt the Secretary of State‟s election training scheduled for June 10th and 11th was very important
and that two or three staff should attend. He indicated that he felt it was important to appoint
someone to fill in who will not have a huge learning curve. Commissioner Corcoran stated that
it is important to note that the Board will be appointing an “Interim Auditor”. Motion was made
by Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
appoint Char Meiners as Interim County Auditor with the understanding that she will revert back
to the position of Chief Deputy Auditor at the end of the interim. Commissioner Connery stated
that this appointment is being made on the basis that she is Chief Deputy Auditor and the Board
feels she is the best qualified based on her experience, job knowledge and job performance.
         Commissioner Connery reported on a HVMHC meeting which he attended. Financial
information was reviewed and they also looked at the various departments and job performance.
In addition, Kathy Niesen from Money Creek Township was appointed to the HVMHC Board of
Directors to replace Darlene Corcoran.

       Commissioner Graf reported on a meeting held with Tim Penny, Southern MN Initiative
Fund, last Wednesday at the Four Seasons. Houston County issues were discussed including,


REGULAR SESSION                                                                       Page     111
.




layoffs, infrastructure, the ag economy, etc. Mr. Penny brought up the idea of grants to assist
smaller businesses in starting up.

      Chairperson Thompson reported on a Water Plan meeting which she attended last week
at Camp Winnebago.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Connery and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 18 -- Correspondence to Senator Ropes thanking her
          for lobbying in favor of default language for StedFast.

                   File No. 19 -- Correspondence to Senator Ropes requesting her
          support of S.F. 3413 (appointing Auditor/Treasurer Offices).

                  File No. 20 -- A Public Notice canceling the June 10, 2008
          Board meeting.

                   File No. 21 -- A Public Notice regarding a special work session
          held April 29, 2008.

                   File No. 22 -- Notice of a Public Hearing regarding a proposed
          tax abatement in La Crescent City (Parcel 25.0361.000).

                  File No. 23 -- A notice of a Caledonia City Public Hearing and
          a change in date/time of said public hearing to be held at 6:30 p.m. on
          May 19, 2008 in the Council Room, City Hall, Caledonia, regarding the
          proposed Houston County Highway Shop.

                    File No. 24 -- Correspondence to Richard Sather thanking him
          for his years of service to Houston County.




REGULAR SESSION                                                                      Page   112
.




       There being no further business, motion was made by Commissioner Bjerke, seconded
by Commissioner Connery and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, May 13, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         A. Peter Johnson, County Auditor




REGULAR SESSION                                                                Page    113
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, May 13, 2008                        9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Sheriff Ely; Chief Deputy
                   Yeiter; Deputies and Police Officers (See File No. 1); Joyce
                   Iverson; John Benton; Jerry Steffes; Dan Kohls; Eric Kiesau; Reporters
                   Warner, Gray & Popplewell

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the May 6, 2008 meeting.

      File No. 2 -- Motion was made by Commissioner Graf, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $100,328.07
              Road & Bridge Fund                                  25,512.16
                                                               ---------------
              Total                                            $125,840.23
                                                               =========

        File No. 3 -- At this time Sheriff Ely and Chief Deputy Yeiter met with the Board.
Sheriff Ely stated that this week is Law Enforcement Memorial Week, being the time that they
normally present the Officer of the Year Award. Also, he wants to recognize certain officers for
their efforts during the August 2007 flood, and he presented Certificates of Valor to the
following: Scott Yeiter, Tracie Erickson, Brian Swedberg, Daniel Coogan, Jon Kulas, Luke
Sass, Kurt Kuhlers, Todd Nelson, Justin Thorsen, Mike Ernster, Chad Heuser, Paul Folz, David
Breault, Scott Fritz, Allan Johnson and Jim Stemper. Sheriff Ely stated that there are many
members of the various fire departments, dispatchers, first responders and volunteers who should
also be recognized for their efforts during the flood.



      Sheriff Ely presented the Officer of the Year Award to DNR Officer Scott Fritz. Chief
Deputy Yeiter stated that Officer Fritz was instrumental in saving the lives of many of the
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.




rescuers whose lives were endangered during the August 2007 flood. Officer Fritz was selected
to receive this award through a vote of his peers in Houston County.

        Sheriff Ely reported that Ed Heberlein was recognized as Posse Member of the Year
during their annual meeting in April.

       Commissioner Corcoran commented that he has heard criticism from the public regarding
the county‟s policy of allowing deputies to take their patrol cars home. He stated that this is a
prime example of why this is allowed, and that, when an emergency happens, deputies have
everything they need in order to be able to respond immediately.

       Sheriff Ely introduced Brooke Privet, an intern in his department.

         Personnel Director Comstock reported that two candidates were interviewed for the
position of Interim County Attorney. He asked whether the Board was ready to make a decision
in this regard. The Commissioners indicated that one candidate rose to the top because of her
background and experience. After discussion, motion was made by Commissioner Bjerke,
seconded by Commissioner Corcoran and unanimously carried to identify Suzanne Bublitz as the
finalist for the position of Interim County Attorney and to appoint Commissioners Graf and
Connery to a committee to work with Personnel Director Comstock to identify a starting salary.

        Personnel Director Comstock stated that, since Suzanne Bublitz is an existing Assistant
County Attorney, the Board should consider whether they want to proceed with filling the
subsequent vacancy in that position. The Board agreed that the subsequent vacancy will need to
be filled, but indicated that they will make this decision once the final appointment of Ms.
Bublitz as Interim County Attorney is made.

       File No. 4 -- Auditor Johnson reported on an Application for Abatement on behalf of J.
Bradley and Shelley Jilek, Parcel #03.0266.000 as the shed/garage was incorrectly coded as
commercial. If approved, this will decrease the 2008 payable tax from $3,792.00 to $3,542.00,
being a reduction of $250.00. Motion was made by Commissioner Bjerke, seconded by
Commissioner Graf, and unanimously carried to approve the same.

        File No. 5 -- Auditor Johnson reported on an Application for Abatement on behalf of
William and Dorothy Hoskins, Parcels #24.0589.000, #24,0590.000 and #24.0591.000 as the
taxable market value should have been lowered due to the seven year plat law. If approved, this
will decrease the 2008 payable taxes as follows:




                           Tax Before        Tax After     Amount of
         Parcel #          Abatement        Abatement       Reduction
       24.0589.000         $ 608.00           $26.00         $582.00

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.




       24.0590.000              888.00          40.00          848.00
       24.0591.000              588.00          26.00          562.00
                            ------------      ---------    ------------
       Total                $2,084.00          $92.00      $1,992.00
                            =======            =====       =======

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf, and
unanimously carried to approve the abatement on behalf of William and Dorothy Hoskins.

       File No. 6 -- Auditor Johnson reported on an Application for Abatement on behalf of
Brent and Nicole Kimmerle, Parcel #26.0685.000 as Spring Grove City gave the wrong parcel
number on the building permit to the Assessor‟s Office which resulted in the plat law being
discontinued and a building being added to the estimated market value. If approved, this will
decrease the 2008 payable tax from $644.00 to $118.00, being a reduction of $526.00. Motion
was made by Commissioner Bjerke, seconded by Commissioner Graf, and unanimously carried
to approve the same.

       File No. 7 -- Discussion was held regarding correspondence received from Semcac
requesting donations toward the purchase of a new bus. The Board directed the Auditor‟s Office
to schedule an appointment for representatives of Semcac to attend a Board meeting to make a
presentation in this regard, and to provide an update on their other programs.

       Discussion was held regarding a presentation made last Tuesday by Diane Amundson,
Express Business Solutions, regarding strategic planning. After discussion, it was the consensus
of the Board that they are interested in strategic planning, but to wait until all of the new
department heads are in place before proceeding with that process.

       File No. 8 -- Auditor Johnson presented a snowmobile trail funding request on behalf of
Viking Ridge Riders Snowmobile Club. Motion was made by Commissioner Connery, seconded
by Commissioner Bjerke and unanimously carried to adopt the following resolution:

                                   RESOLUTION NO. 07-27

       BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the Viking Ridge Riders Snowmobile Club and
authorizes the Board Chairman and the County Auditor to sign an agreement with the
Department of Natural Resources.




REGULAR SESSION                                                                    Page     116
.




         Chairperson Thompson stated that Senator Ropes still has the opportunity to present
legislation regarding making the offices of Auditor and Treasurer appointed. It was agreed to
draft a letter to Senator Ropes requesting that she pursue this legislation.

        File No. 9 -- Chairperson Thompson reported on correspondence she received from Paul
Wilson, President of the Association of Minnesota Counties, regarding the need for county
officials to provide leadership in meeting the challenges of providing services in a fiscally
judicious way. However, the AMC is not offering a plan. After discussion, it was agreed to
draft a letter to Mr. Wilson indicating that Houston County is in agreement with his views, and
asking that the AMC develop a plan in this regard.

       File No. 10 -- Chairperson Thompson reported on correspondence received from Timothy
J. Penney, President of Southern Minnesota Initiative Foundation, regarding the possibility for
collaborative efforts with this organization. It was agreed to forward a copy of this letter to
Joyce Iverson, Houston County EDA.

        File No. 11 -- The time being 10:00 a.m., a public hearing was convened to consider
granting a tax abatement on behalf of Walnut Street Properties, LLC for Parcel No. 25.0361.000.
Joyce Iverson introduced three of the four partners involved in this project, being Jerry Steffes,
Dan Kohls, and Eric Kiesau. The remaining partner is W D Properties. Originally, the partners
were interested in pursuing TIF for this project, however, since the City of La Crescent‟s
population is slightly over 5,000, they could not do an economic development TIF District.
Accordingly, they have applied to both the County and the City for an economic development
tax abatement. Houston County‟s portion of the abatement is being proposed at 75% for six
years and 50% for four years, with a “Not to Exceed” figure of $45,000. Last evening, La
Crescent City voted to approve a 100% tax abatement over 10 years. John Benton, President of
the Houston County EDA, was present and reported that the EDA recommended approval of the
same. After discussion and on the recommendation of the Houston County EDA, motion was
made by Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried
to approve Houston County‟s portion of the abatement, at 75% for six years and 50% for four
years, with a “Not to Exceed” figure of $45,000.

       John Benton reported briefly on the open house held at the Houston County Airport over
the weekend. He indicated that the airport tourism directory needs to be updated to list more of
Houston County‟s local attractions.

       Commissioner Bjerke reported on a Houston County EDA meeting which he attended.

       Commissioner Connery reported on a Semcac meeting which he attended and indicated
that Semcac is in a strong financial position.

       Commissioner Connery reported on a StedFast meeting which he attended. They
reviewed whether to exercise their option on the office building located by the Airport in
Olmsted County. The option to purchase expires around the same time that the legislature

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.




adjourns. There is a three day period where the Governor can veto any bill passed in favor of
StedFast. They plan to go back to the property owners and ask for an extension. As soon as they
know legislation has passed and the Governor will not veto it, they plan to call a special meeting
to pursue this. He indicated that, once this is taken care of, the alternates may want to become
involved in attending some of the StedFast meetings.

       Commissioner Graf reported on an MCIT meeting which he attended on Friday.

      Motion was made by Commissioner Graf, seconded by Commissioner Connery and
unanimously carried to place on file the following items from the consent agenda:

                     File No. 12 -- Correspondence to Payroll regarding approval to
           hire up to 2 temporary/seasonal employees in the Surveyor‟s Office, the
           hiring of Arlie Blexrud as a VSO driver and the hiring of Jessica
           Zibrowski & Mary Breault as matrons to transport prisoners.

                    File No. 13 -- Correspondence regarding the tons delivered to
           Xcel during April 2008.

                    File No. 14 -- A Sentence to Service Quarterly Report for first
           quarter 2008.

                    File No. 15 -- A fully executed 2008 contract between the
           counties of Carver, Chisago, Dakota, Fillmore, Freeborn, Goodhue,
           Houston and Scott and Regina Medical Center for morgue facilities and
           medical examiner support services.

       There being no further business, motion was made by Commissioner Bjerke, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, May 20, 2008.

                                             BOARD OF COUNTY COMMISSIONERS
                                             HOUSTON COUNTY, MINNESOTA

                                             By: ________________________________
                                                    Ann Thompson, Chairperson

Attest: _____________________________
        A. Peter Johnson, County Auditor




REGULAR SESSION                                                                       Page    118
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, May 20, 2008                         9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Ann Thompson, and David Corcoran

Others Present:    Chief Deputy Auditor Meiners; Deputy Auditor Gulbranson; Emergency
                   Management Director Kuhlers; Engineer Evans; Maintenance Foreman
                   Molling, Personnel Director Comstock; Environmental Services Director
                   Frank; Reporters Warner, Buxengard & Popplewell

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Corcoran, seconded by Commissioner Graf and
unanimously carried to approve the minutes of the May 13, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

               County Revenue Fund                              $251,796.05
               Road & Bridge Fund                                  42,748.07
                                                                ---------------
               Total                                            $294,544.12
                                                                =========

        At this time Emergency Management Director Kuhlers met with the Board. Mr. Kuhlers
indicated that grant funding is available for the installation of antennas in connection with the
800 megahertz radio project. He requested authorization to install antennas on the courthouse
roof, and at the same time, install new VHF cable. After discussion, motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
the same.

       Emergency Management Director Kuhlers reported that he met with the consulting firm
who is drafting the Hazard Mitigation Plan, and this process is moving forward.

       File No. 2 -- At this time Engineer Evans and Maintenance Foreman Molling met with
the Board to discuss a public hearing of the Caledonia City Council held last evening regarding
the proposed 23 acre site for a new Highway Department building. Action was taken by the
Council approving a setback variance for the construction of a salt shed, to approve a radio tower
and to approve replacement of a water main in Loeffler Avenue and future street reconstruction
REGULAR SESSION                                                                      Page     119
.




costs. Action was also taken by the Council to not hold Houston County liable for degradation
of the 9-ton design of West Main Street and indicating that, when this street is rehabilitated in the
future, it will be built to a 10-ton design. Further, the Council took action to affirm that Houston
County shall not be obligated to install sidewalk along the West Main Street property line until
such future time as the City shall order sidewalk installation for all property owners eastward to
State Trunk Highway 44/76.

         Engineer Evans reported that QED Engineering performed a storm water analysis years
ago for development in this area, and subsequently, the City built ponds to handle the storm
water. Their analysis was based upon the area being utilized for 30 residential homes. It is their
understanding that QED Engineering felt these ponds would be sufficient for the drainage in this
area based on 30 homes, therefore, it is their assumption that the pond and drainage area would
support the proposed Highway Department building. They have called the consultant in this
regard, but have not received a response. The City has indicated that they are not agreeable to
expanding the ponds in the future at City expense. However, they would allow the County to
expand the ponds on City property at County expense. It was pointed out that development in
the area of the car wash could also impact drainage to this area, and Houston County does not
want to be responsible for the drainage costs associated with such development. Engineer Evans
indicated that it is his understanding that a property owner in the area already has concerns with
drainage from the school property. Personnel Director Comstock pointed out that there could be
liability issues if the County were to expand the existing ponds when the County does not even
own the property they are located on. Maintenance Foreman Molling indicated that the City is
attempting to obtain a copy of the analysis completed by QED Engineering. After discussion, it
was agreed to table this matter until more information is available.

        Engineer Evans stated that he felt it was time to have a discussion regarding which
departments will be moving out to the new Highway Department building. He felt this
information was necessary so that they can move forward with the footprint, layout and size
requirements. After discussion, it was agreed to hold a meeting of the Land Use Committee after
next Tuesday‟s Board meeting in this regard. Chairperson Thompson indicated that she would
be willing to attend if Commissioner Connery is not available that day.

       Engineer Evans requested authorization to advertise for a bridge project on CSAH#10
(S.A.P. 28-610-18). Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve the same.

       Maintenance Foreman Molling reported on an inspection held last Wednesday at the
County‟s sand-pull site. The inspector found nothing wrong with the site. However, he also
inspected the truck and loader used at the site, and we received a citation because the back-up
alarm did not work and because of a minor issue with the loader.


      At this time Personnel Director Comstock met with the Board and reported that John
Heimer has submitted his resignation from the position of Sign Specialist. Motion was made by

REGULAR SESSION                                                                         Page     120
.




Commissioner Graf, seconded by Commissioner Corcoran, and unanimously carried to accept
said resignation.

       Personnel Director Comstock requested authorization to advertise for a replacement for
the position of Sign Specialist. This person would be required to have a commercial driver‟s
license and will function as a back up for the snowplow drivers. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
the same.

       Personnel Director Comstock requested that the Board take action to reduce the full-time
equivalency (FTE) for Michelle Severson from full-time to 0.8 FTE effective at the start of the
current pay period. Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve the same.

       Personnel Director Comstock requested that the Board take action to approve hiring
Carol Hyter to be used as needed as a Roster HHA. Motion was made by Commissioner Graf,
seconded by Commissioner Corcoran and unanimously carried to approve the same.

        Personnel Director Comstock requested that the Board take action to approve Brooke
Privet to be used as needed as a Transport Matron for the Sheriff‟s Office. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
the same.

        File No. 3 -- Personnel Director Comstock presented a proposed agreement for the
purpose of appointing Charlene Meiners as Interim County Auditor for the remainder of the
current elected term, effective May 31st, 2008 and expiring at midnight on January 3, 2011.
Motion made by Commissioner Graf, seconded by Commissioner Corcoran and unanimously
carried to approve the agreement and to authorize the signature of Chairperson Thompson.

        Personnel Director Comstock requested the authorization to advertise for the vacant
position of Deputy Auditor since the above appointment leaves the Auditors Office short one
full-time position. Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve advertising for said position.

        File No. 4 -- Personnel Director Comstock presented a proposed agreement for the
purpose of appointing Suzanne Bublitz as Interim County Attorney for the remainder of the
current elected term, effective May 31st, 2008 and expiring at midnight on January 3, 2011.

        Mr. Comstock stated that positions who are expected to be on call 24/7 are eligible for a
$30 per month cell phone per diem. However, he has received input that $30 does not cover the
cost, and he asked that the Board consider increasing this to $60 per month. He has reflected this
change in the proposed agreement with Suzanne Bublitz, as her position is required to be on call
24/7. Chairperson Thompson stated that doubling the cell phone per diem was a drastic increase,
and she felt that a less expensive cell phone plan may be adequate for these employee‟s work

REGULAR SESSION                                                                      Page     121
.




requirements. After discussion, it was agreed that a committee consisting of two commissioners
will meet with Mr. Comstock regarding the proposed increase in cell phone per diems.

        Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to approve the Agreement appointing Suzanne Bublitz as Interim County
Attorney and to authorize the signature of Chairperson Thompson, with the understanding that
her cell phone per diem shall be the same as provided for in the County‟s Cell Phone Per Diem
Policy.

       Personnel Director Comstock requested authorization to advertise for an Assistant
County Attorney to fill the vacancy caused by the appointment of Suzanne Bublitz as Interim
County Attorney. Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve the same.

       File No. 5 -- Personnel Director Comstock requested that the Board take action to
approve a three-year agreement with the AFSCME (American Federation of State, County and
Municipal Employees) Union contingent upon approval by the Union. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
the contract and to authorize the signature of Chairperson Thompson.

       Personnel Director Comstock indicated that interviews will be held this afternoon for the
vacant position of Deputy Sheriff.

        File No. 6 -- Environmental Services Director Frank requested approval of a contract
between Houston and Winona Counties for the operation of a Household Hazardous Waste
Program. Since the program utilizes the La Crosse County facility and La Crosse County mobile
units, he has asked both County Attorney Jackson and MCIT to review the proposed contract.
He indicated that he has scheduled two collection dates, being August 28th and September 4th.
Motion was made by Commissioner Corcoran, seconded by Commissioner Graf and
unanimously carried to approve the contract and to authorize the signature of Chairperson
Thompson.

        File No. 7 -- Discussion was held regarding an Application for Abatement on behalf of
Win C. Hlaing and Yi Y. Cho, Parcel No. 25.2010.000, in the amount of $1,863.19, as their
special assessment was paid in full, but was inadvertently not removed from the tax system.
Motion made by Commissioner Corcoran, seconded by Commissioner Graf and unanimously
carried to approve said abatement.

       File No. 8 -- Received and filed was an application for snowmobile trail assistance on
behalf of the La Crescent Trail. Motion was made by Commissioner Graf, seconded by
Commissioner Corcoran and unanimously carried to adopt the following resolution:

                                  RESOLUTION NO. 08-28


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.




      BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the La Crescent Trail and authorizes the Board
Chairman and the County Auditor to sign an agreement with the Department of Natural
Resources.


       Commissioner Corcoran reported on the Joint Board of Health meeting held last Tuesday
afternoon in Spring Grove.

       Chairperson Thompson and Commissioner Graf reported that they met with Johnson
Controls regarding the CJC Project. Johnson Controls is not billing us currently, as the project is
on hold.

      Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to place on file the following items from the consent agenda:

                     File No. 9 -- Correspondence to the AMC asking them to form
           a plan regarding providing services in a fiscally judicious way.

                    File No. 10 -- Correspondence to Diane Amundson expressing
           the Board‟s interest in strategic planning once the vacant department
           head positions are filled.

                     File No. 11 -- Correspondence to Senator Ropes supporting
           legislation to make the offices of Auditor and Treasurer appointed.

                   File No. 12 -- Correspondence regarding approval of
           abatements on behalf of J. Bradley and Shelley Jilek, William and
           Dorothy Hoskins and Brent and Nicole Kimmerle.




REGULAR SESSION                                                                       Page     123
.




       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Corcoran and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, May 27, 2008.

                                         BOARD OF COUNTY COMMISSIONERS
                                         HOUSTON COUNTY, MINNESOTA

                                         By: ________________________________
                                                Ann Thompson, Chairperson

Attest: ___________________________________
         Charlene Meiners, Chief Deputy Auditor




REGULAR SESSION                                                              Page    124
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, May 27, 2008                         9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Ann Thompson, David Corcoran and Tom Bjerke

Others Present:    Auditor Johnson; Chief Deputy Auditor Meiners; Deputy Auditor
                   Gulbranson; Engineer Evans; Mrs. Sweeney & 9th Grade Civics Class;
                   Surveyor Walter; Personnel Director Comstock; County Attorney Jackson;
                   Assistant County Attorney Bublitz; Court Administrator Kuhlers; Emergency
                   Manager Kuhlers; Joyce Iverson; Cindy Augedahl; Assistant County
                   Attorney Ashmore; Reporters Warner, Buxengard, Popplewell

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to approve the minutes of the May 20, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

               County Revenue Fund                              $162,520.89
               Road & Bridge Fund                                  51,862.23
                                                                ---------------
               Total                                            $214,383.12
                                                                =========


       Chairperson Thompson welcomed Mrs. Sweeney and her 9th Grade Civics Class. The
Board introduced themselves and reported on the districts they represent.

       File No. 2 -- At this time Engineer Evans met with the Board and requested approval of
an agreement with Historical Bluff Country Group whereby Houston County will act as a fiscal
agent between them and the State. Motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to adopt the following resolution:

                                    RESOLUTION 08-29
        BE IT RESOLVED, that pursuant to Minnesota Statute Section 161.36, the
Commissioner of Transportation be appointed as Agent of the County of Houston to accept as its
agent, federal aid funds which may be made available for eligible transportation related projects.
REGULAR SESSION                                                                      Page     125
.




       BE IT FURTHER RESOLVED, the Chairman of the Houston County Board of
Commissioners and the Houston County Auditor, are authorized and directed for and on the
behalf of the County to execute and enter into an agreement with the Commissioner of
Transportation prescribing the terms and conditions of said federal aid participation as set forth
and contained in “Minnesota Department of Transportation Agreement No. 92884,” a copy of
which said agreement was before the County Board and which is made a part hereof by
reference.

       Surveyor Walter reported on re-establishing section and corner section markers.
Surveyor Walter also reported on a project involving properties in Sheldon Township. Sheldon
was surveyed in 1855 by James Sheldon. Then as homes were built, no record of surveys were
found until a road survey was done in 1960. Surveys were done in 2000 and again in 2004,
however, they overlap. Because of this, the County was asked to do a survey with the
understanding that they will agree on the County‟s findings in this regard.

       At this time County Attorney Jackson met with the Board and reported that the
Chapel/Botcher situation has been resolved and closing will be held at 1:00 p.m. on Wednesday,
May 28, 2008. He requested that the Board take action to approve completing the transaction
and to authorize the signatures of Chairperson Thompson and Auditor Johnson. Motion was
made by Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried
to approve the same and to authorize the signatures of Chairperson Thompson and Auditor
Johnson on the deed.

       File No. 3 -- At this time Chairperson Thompson administered the oath of office
appointing Suzanne Bublitz as County Attorney and Char Meiners as County Auditor effective
May 30, 2008.

        Chairperson Thompson introduced Emergency Manager Kuhlers who was instrumental
in coordinating the efforts during the 2007 flood. Mr. Kuhlers stated that he is the point man for
coordinating the federal and state agencies to come in and assist during disasters. We are
currently developing a new mitigation plan for Houston County, as is required by FEMA and
Homeland Security. The idea of this plan is to help eliminate loss of life and damage to property.
A steering committee is being appointed to help oversee this process, which will take six to
eight months to complete. Mr. Kuhlers requested that one or two Commissioners serve on the
steering committee. A meeting is set up for June 17th at 6:30 p.m. in the Commissioners Room
to get the process started. Commissioners Graf and Corcoran volunteered to serve on the
committee.

       File No. 4 -- At this time Personnel Director Comstock met with the Board to discuss
the Business Recovery Flood Loan Funds, which included $90,000 to cover administrative costs.
The Auditor‟s Office, Recorder‟s Office and County Attorney‟s Office all were involved in
meetings to set up the process regarding how these loans would be handled and processed
through the various departments. The departments involved would like to charge for their time

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.




involved in this process in order to recoup our costs and are proposing to charge $30.00 per hour
for department head time and $20.00 per hour for staff time. Motion was made Commissioner
Corcoran, seconded by Commissioner Bjerke and unanimously carried to approve charging said
amounts.

        Mr. Comstock requested that the Board take action to approve hiring Ronald Freigo and
Alyssa Frank as Dropsite Supervisors to be used as needed. Motion was made by Commissioner
Graf, seconded by Commissioner Bjerke and unanimously carried to approve the same.

        Mr. Comstock reported that last week a committee consisting of the Sheriff, Chief
Deputy, Assistant County Attorney, Board Chairperson and himself interviewed four candidates
for the position of Deputy Sheriff. At the conclusion of the interviews, the committee identified
William Hargrove as the finalist for the position. The next step is for the POST (Peace Officer
Standards Board) background check to be completed.

     Personnel Director Comstock reported on a District IX meeting scheduled for next
Monday, June 2nd, in Hayfield, MN.

       At this time Mrs. Sweeney and her second Civics Class met with the Board.

        File No. 5 -- At this time Joyce Iverson met with the Board and requested approval of a
Business Flood Recovery Loan on behalf of Randy Munson, Randall Chase Trucking, in the
maximum amount of $3,552.00. Motion was made by Commissioner Corcoran, seconded by
Commissioner Bjerke and unanimously carried to approve the same and to adopt the following
resolution:

                                     RESOLUTION 08-30

RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY REVOLVING LOAN
                            FUND LOAN

       WHEREAS, the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application Randall S. Munson and Sandra Munson dba
Randall Chase Trucking, and the Committee and EDA have found that the application complies
with the program policies and has recommended approval of a loan in the amount of $2,552.00,
and up to $1,000.00 for loan closing/origination costs for a maximum total loan of $3,552.00.

    NOW THEREFORE BE IT RESOLVED that the Houston County Board of Commissioners
hereby approves the loan application for Randall S. Munson and Sandra Munson dba Randall
Chase Trucking, 550 Mount Tom Blvd, Hokah, in an amount not to exceed $3,552.00.

       Emergency Manager Kuhlers met with Mrs. Sweeney‟s 9th Grade Civics Class and
discussed his role in the 2007 flood and explained the CODE RED system.


REGULAR SESSION                                                                     Page     127
.




          Personnel Director Comstock met with the 9th Grade Civics Class and explained his
duties.

        Discussion was held regarding the AMC District IX meeting in Hayfield scheduled for
Monday, June 2, 2008. Commissioners Graf and Bjerke and Personnel Director Comstock will
be attending.

          Commissioner Corcoran reported on a zoning meeting which he attended.


      Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to place on file the following items from the consent agenda:

                      File No. 6 -- Correspondence to Payroll regarding the reduction
             in FTE for PHN Michelle Severson, the hiring of Carol Hyter as a roster
             HHA, the hiring of Brooke Privet as a Transport Matron and the
             approval of agreements with Char Meiners as Interim County Auditor
             and Suzanne Bublitz as Interim County Attorney.

                      File No. 7 -- Correspondence to Payroll regarding action taken
             at the Human Services meeting to decrease the FTE for Karen Sanness
             to 0.5.

                     File No. 8 -- Correspondence from Auditor Johnson regarding
             County Program Aid and levy limits.

                     File No. 9 -- Correspondence to department heads regarding a
             meeting to discuss the offices that will move to the new Highway
             Department.

                       File No. 10 -- Correspondence to John Heimer thanking him
             for his years of service to Houston County.




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.




       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, June 3, 2008.

                                           BOARD OF COUNTY COMMISSIONERS
                                           HOUSTON COUNTY, MINNESOTA

                                           By: ________________________________
                                                  Ann Thompson, Chairperson

Attest: _____________________________
        Charlene Meiners, County Auditor




REGULAR SESSION                                                              Page    129
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, June 3, 2008                 9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Ann Thompson, David Corcoran and Tom Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Gulbranson; Engineer Evans; Maintenance
                   Foreman Molling; Zoning Administrator Scanlan; Personnel Director
                   Comstock; Chief Deputy Sheriff Yeiter; Victim Services Director Herman;
                   Representative Tschumper; IS Manager Milde; Environmental Services
                   Director Frank; Recorder Bauer; Emergency Manager Kuhlers; Patrick
                   Hayes; Jan Klug; Reporters Warner, Popplewell & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the May 27, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

              County Revenue Fund                        $ 89,032.36
              Road & Bridge Fund                            44,896.03
                                                         ---------------
              Total                                      $133,928.39
                                                         =========

       File No. 2 -- At this time Engineer Evans met with the Board and reported on the
following bids received until May 29, 2008 for S.A.P. 28-631-01:

                        Brennan Construction Co.
                        Lansing, IA 52151                 $427,430.25

                        Minnowa Construction, Inc.
                        Harmony, MN 55939                 $442,209.25


       On the recommendation of Engineer Evans, motion was made by Commissioner Bjerke,
seconded by Commissioner Corcoran and unanimously carried to accept the low bid of Brennan
Construction Co. in the amount of $ 427,430.25.
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.




        Maintenance Foreman Molling and Engineer Evans reported that the purchase agreement
on 23 acres of land for the new Highway Department expires on Monday, June 9th. No one can
produce the records of the QED report on the drainage study performed 12 years ago for this
area. Reporter Warner indicated that approximately a week ago the City Council voted to have
Davy Engineering perform another study for a 2 to 5 year rain event. However, it was mentioned
that the city expected this to cost approximately $1,000, therefore, there was some question as to
how in-depth this study would be. Engineer Evans indicated that a study based on a 2 to 5 year
rain event was reasonable and would satisfy the MPCA, as they are looking for information on
where the suspended solids would settle out and not be transferred down-stream further.
Discussion was held regarding the possibility of requesting an extension to the purchase
agreement.

        After discussion, motion was made by Commissioner Corcoran and seconded by
Commissioner Graf to pursue the water plan, but to let the purchase agreement expire as it could
take several months before the issue is resolved. Commissioner Bjerke made a motion to amend
the standing motion and request an extension to the existing purchase agreement. The motion to
amend the standing motion failed due to the lack of a second. The standing motion was voted on
and passed, with Commissioner Bjerke voting in the negative.

       After discussion, motion was made by Commissioner Corcoran, seconded by
Commissioner Bjerke and unanimously carried to attempt to negotiate with the owners of the
property for an extension to the purchase agreement.

       File No. 3 -- Zoning Administrator Scanlan reported on the following application for a
variance which was approved by the Board of Adjustment:

             Curtis and Karen Myrah – Wilmington Township – Variance of 10 feet to
             meet the required 130 foot setback from State Highway 44 to replace an
             existing home.

       File No. 4 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Bjerke and unanimously carried to approve the issuance of the following Conditional Use
Permits:

             Jeremy and Amy Lee – Spring Grove Township - Build a house on less than
             40 acres in an agricultural district.

             Curt Roverud – Spring Grove Township - Expand a rock quarry and do
             mineral extraction in an ag district.

        File No. 5 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried to approve
the issuance of the following zoning permits:

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.




            Don Landsom –Wilmington Township - Build hay shed (60‟ x 120‟)

            Arlin Gran – Crooked Creek Township - Build utility room addition on
            house (8‟ x 9‟)

            Charlie Von Arx – Mound Prairie Township - Flood erosion abatement

            Bill and Michael Lynch – Mound Prairie Township - Build house (28‟ x
            64‟) garage (28‟ x 32‟)

            Joel Rosaaen – Black Hammer Township - Build pole shed – hay storage
            (54‟ x 81‟)

            Greg Boldt – Houston Township - Build pole sheds (40‟ x 60‟) and (32‟ x
            64‟)

            Randy Steinfeldt – Houston Township - Confinement cattle shed addition on
            existing machine shed (44‟x 88‟)

            Greg Larson – Hokah Township - Build ag building (40‟x 60‟)

            Joe Krage and Laura Scanlan – Houston Township - Build house (28‟ x 50‟)
            garage (28‟ x 38‟)

            William and Carol Abrahamzon – Crooked Creek Township - Build
            addition-no bedrooms (20‟ x 28‟) porch entry (10‟x 10‟) decks (12‟x14‟)
            and (24‟ x 18‟)

            Phillip and Kathryn Niesen – Money Creek Township - Build pole shed (36‟
            x 54‟)

            Tom Hoscheit – Mayville Township - Build grain bin (20,000 b.u.)

            Tom Herberlein – Union Township - Replace existing machine shed (40‟ x
            60‟)

            Dennis Doering Jr. – Brownsville Township - Build house (40‟ x 70‟)
            garage (30‟ x 40‟) deck (16‟ x 24‟) shed (50‟ x 100‟)

       File No. 6 -- At this time Chief Deputy Yeiter and IS Manager Milde met with the Board
and requested authorization to purchase IDimage software from Ban-Koe Systems, Inc. at a cost
of $2,240.00. This is a budgeted item. IS Manager Milde reported that the Sheriff‟s Office has
been utilizing the courthouse‟s ID software which was purchased in conjunction with the “badge

REGULAR SESSION                                                                   Page    132
.




in, badge out” door system. However, when the new firewall was installed, it eliminated the
sheriff department‟s access to the courthouse‟s ID software. The IDimage software is more user
friendly and we will be able to convert the current database to the new system. It was the
consensus of the Board to approve said purchase.

       File No. 7 – At this time Victims Services Director Herman met with the Board and
presented an amendment to Grant Contract 2008-CVS-0016 /6900-2059 extending the expiration
date to September 30, 2008. Motion made by Commission Graf, seconded by Commissioner
Corcoran and unanimously carried to approve the amendment and to authorize the signatures of
Chairperson Thompson and Auditor Meiners.

         Chairperson Thompson stated that in December the Board approved a two track approach
with regard to the Criminal Justice Center, whereby they would continue to negotiate with the
City of Caledonia in an attempt to find a suitable site, and at the same time, to authorize
commencing litigation against the City of Caledonia. She indicated that there will probably be a
summons filed in the near future. While there is potential for upcoming changes in the court
system and the way we do business, this does not change the fact that our jail is overcrowded,
and is not up to date or efficient. Commissioner Bjerke expressed his concern regarding fuel
costs in transporting prisoners. Commissioner Graf indicated that the County is at risk for
liability if an accident would occur while a prisoner is being transported. He indicated that the
cost of one lawsuit could pay for much of the cost involved in building a new jail.
Commissioner Bjerke suggested getting the city involved in the process upfront, rather than
coming up with a plan and then trying to get the City‟s approval. Commissioner Graf suggested
having one or two Caledonia City residents involved as well.

        At this time Representative Tschumper met with the Board. He indicated that this has
been a mixed legislative session, and there are many legislators in the House who are unhappy
with their own leadership with regard to the way the last 48 hours of the session went. He is
very unhappy that levy limits were put in place for counties. He indicated that he almost voted
against that bill, however, it included $65 million in Local Government Aid for cities and
counties, therefore, he voted for it reluctantly. He indicated that they were also successful in
getting more money for nursing homes.

        Representative Tschumper reported on the StedFast legislation. He indicated that this
was a major bill for five counties in our area. He and other legislators worked very hard to get
this passed, as county-based purchasing has proved to save money and provide better services.
While the bill passed initially, it was subsequently vetoed by the Governor. He indicated that U-
Care dominates the market and was successful in lobbying the Governor in this regard.
Representative Tschumper expressed his concern that the area counties are considering dropping
StedFast totally. He felt this would be a mistake, as it is an innovative approach which would be
very cost-effective. He suggested that another attempt be made in the January session to get
legislation passed in this regard.



REGULAR SESSION                                                                     Page     133
.




       Representative Tschumper reported that the House passed legislation to make the offices
of Houston County Auditor and Treasurer appointed. However, it did not pass in the Senate.
He indicated that similar legislation passed for approximately 10 other counties.

         Representative Tschumper stated that June 30th is the deadline for most of the disaster
relief funding to be spent. Whatever is not spent must be returned to the state. He indicated that
there is disaster funding that was not spent by some of the area counties, and he inquired whether
Houston County sees a need for additional disaster funding. Personnel Director Comstock stated
that he is on the Debris Removal Disaster Committee and he felt there may be a need for
additional funds. Emergency Manager Kuhlers indicated that they established a maximum of
$5,000 per individual in order to provide assistance to as many individuals as possible. He
reported on the DNR funding for streambank cleanup. Houston County initially received
$120,000 for this and we have requested an additional $100,000. This grant funding runs through
2009. The Board indicated that there was a need for funding for streambank stabilization.
Representative Tschumper indicated that he will be going to the capitol tomorrow and will check
and see whether additional funding is available.

        The Board brought up the fact that the legislature adopted legislation stating that all
maintenance of effort and matching funds for counties are suspended for taxes payable in years
with levy limits. An example is that, if the state decides to send prisoners back to the counties
they are from and they only want to pay $11 per day for boarding costs compared to the $65 per
day boarding costs counties must pay, counties could refuse to take the prisoners back. This
would also affect things such as library funding. However, a letter written by Tom Hanson
indicates that counties should not suspend these obligations, as the legislature will repeal this
legislation in their next session. The Board expressed their concerns in this regard.
Representative Tschumper indicated that he also finds this very disturbing. The Board stated
that there is getting to be less and less of a partnership between counties and the state.
Representative Tschumper indicated that he feels the current Governor is breaking down the
partnership between state and local government. Chairperson Thompson reported on
information she received regarding growth in state and county revenues and expenditures from
1995 to 2005. Counties had zero growth in revenues and 1.7% growth in expenditures, while the
state had 7% growth in revenues and 8% growth in expenditures. Discussion was held.

       File No. 8 -- Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to approve the issuance of the following Liquor, Wine and Beer
Licenses effective July 1, 2008 through June 30, 2009:


           LIQUOR LICENSES, WINE AND STRONG BEER
           Rushford Golf Club, Inc. dba Ferndale Country Club with Deck
           Daniel Joseph Albert dba Skyline Supper Club
           Amanda J. Myhre dba Amanda‟s Back 40 LLC
           Ma Cal Grove Country Club, Inc. dba Ma Cal Grove Country Club
           Valley High Golf, Inc. dba Valley High Country Club

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.




          Satim, Inc. dba Little Miami
          Denstad Enterprises, Inc. dba Shellhorn Roadhouse
          City of La Crescent dba Pine Creek Golf Course (Wine & Strong Beer)

          ON SALE BEER LICENSES
          La Crescent Snowmobile Club
          City of La Crescent dba Pine Creek Golf Course
          Donna Marie & Daniel Earl Boser dba Lawrence Lake Marina
          Gopher State Sportsmans Club

          OFF SALE BEER LICENSES
          La Crescent Snowmobile Club
          City of La Crescent dba Pine Creek Golf Course
          Donna Marie & Daniel Earl Boser dba Lawrence Lake Marina
          Houston Food Mart

        File No. 9 -- Auditor Meiners reported that in January the Board adopted Resolution 08-
5 approving a Business Flood Recovery Revolving Loan Fund Loan on behalf of Crest Precast,
Inc. in the amount of $193,438.00. This was prior to the Board approving an additional
$1,000.00 per loan to cover origination and closing costs. Therefore, she requested that the
Board take action to adopt a new resolution, which will replace Resolution No. 08-5, reflecting
the increased maximum loan amount of $194,438.00. Motion was made by Commissioner
Corcoran, seconded by Commissioner Bjerke and unanimously carried to adopt the following
resolution:

                                 RESOLUTION NO. 08-31

RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY REVOLVING LOAN
                            FUND LOAN

      WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from CREST PRECAST, INC., and the Committee
and EDA have found that the application complies with the program policies and also have
recommended approval of a loan in the amount of $194,438.00.

       NOW THEREFORE BE IT RESOLVED that the Houston County Board of
Commissioners hereby approves the loan application for CREST PRECAST, INC., 609 Kistler
Drive, La Crescent, in the maximum amount of $194,438.00.

       File No. 10 -- Chairperson Thompson reported on an AMC District IX meeting held
yesterday regarding the legislative session, budget issues, and counties efforts to redesign
themselves and their work to meet future needs of the people more efficiently. The legislature
adopted a bill imposing levy limits on counties, with a number of special levy exceptions.


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.




       Auditor Meiners inquired whether the Board intends to hold a county auction this year.
The auction is normally held on Tuesday afternoon during the week of the County Fair. After
discussion it was agreed to schedule a county auction for Tuesday, August 12, 2008, at 4:30 p.m.

        There will not be a County Board meeting next Tuesday, June 10th, as Auditor‟s Office
staff will be attending an election training.

      Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 11 -- Correspondence to Payroll hiring Ronald Freigo
           and Alyssa Frank as drop-site supervisors.

                    File No. 12 -- Correspondence from the La Crescent Township
           Zoning Administrator regarding a preliminary plat on behalf of Shawn
           and Lisa Moloney.

       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, June 17, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                                    Page     136
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, June 17, 2008                         9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:     Auditor Meiners; Deputy Auditor Gulbranson; PHN Director Rock;
                    Emergency Manager Kuhlers; Recorder Bauer; Surveyor Walter; Assessor
                    Dybing; Sheriff Ely; Chief Deputy Sheriff Yeiter; Engineer Evans;
                    Maintenance Foreman Molling; Personnel Director Comstock; Joyce
                    Iverson; District Manager Tuck; County Attorney Bublitz;   Reporters
                    Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the June 3, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

               County Revenue Fund                               $288,632.88
               Road & Bridge Fund                                   79,231.13
                                                                 ---------------
               Total                                             $367,864.01
                                                                 =========

        File No. 2 -- At this time District Manager Tuck met with the Board regarding the EWP
Program. As a result of the June 2008 flooding, additional damage occurred at various sites
throughout the County. Through the EWP Program, the Federal Government will pay 75% of
the restoration costs, however it is unsure if state money will be available for the 25% remaining.
If not, the landowners would be responsible for the remaining 25%. Motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
authorize District Manager Tuck to make application for EWP and to be appointed as liaison for
the county for this project.




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.




        File No. 3 -- PHN Director Rock met with the Board and requested approval of a
contract with Prods, LLC dba Mom‟s Meals, Ankeny, Iowa, for home delivered meals. They
deliver meals to IA, WI, and MN. They use new state of the art packaging that allows meals to
remain fresh for over 2 weeks after they are delivered if they are refrigerated. There are 28
meals to choose from at a cost of $6.20 per meal. Motion was made by Commissioner Bjerke,
seconded by Commissioner Graf and unanimously carried to approve the contract and to
authorize the signature of Chairperson Thompson.

       File No. 4 -- At this time Recorder Bauer and Surveyor Walter met with the Board and
requested authorization to pay for a GPS Pathfinder Proxy Receiver out of the Recorder's
Compliance Fund. The total cost of this equipment is $6,065.18. Motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
approve utilizing the Recorder's Compliance Funding for the GPS Pathfinder Proxy Receiver.

        File No. 5 -- At this time Emergency Manager Kuhlers met with the Board and reported
on an amendment to the DEED grant that Joyce Iverson is administering (Grant Number: DRLF-
07-0003-V-FY08). The amount of the grant has been reduced from $5,000,000 to $1,750,000 to
reflect the amount Houston County expects to spend on this program. Motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
approve the grant amendment and to authorize the signature of Chairperson Thompson.

       File No. 6 -- Mr. Kuhlers also reported on a proposed amendment to the DNR Flood
Hazard Mitigation Grant Agreement for in-stream debris removal. This amendment increases the
grant by $100,000 for a total of $200,000. Motion was made by Commissioner Bjerke, seconded
by Commissioner Corcoran and unanimously carried to authorize Chairperson Thompson‟s
signature on the amendment.

        Emergency Manager Kuhlers reported on preliminary damage assessments from the June
2008 flood. The damage to infrastructure throughout Houston County is estimated at
$7,053,000. In addition, District Manager Tuck and his crew estimate crop and agricultural
damages to be $15,000,000. FEMA sent out a damage assessment team and is putting together
an impact statement. This information will be sent to President Bush. He is hoping to be notified
later this week if the Counties of Mower, Freeborn, Fillmore and Houston will receive a
Presidential Declaration. He anticipates receiving federal assistance again, but not the individual
assistance. Workforce Development crews were pulled out of Money Creek and sent to
Dunromin and Camp Winnebago to offer assistance. Olmsted County offered STS prisoners to
help clean up. Mr. Kuhlers also reported that the CODE Red system worked great and that 500
people registered since last weekend. Phone companies with telemarketing screening can
program this so that CODE Red calls can go through. There first Mitigation meeting is
scheduled for this evening at 6:30 p.m. in the Commissioner‟s Room.

        Mr. Kuhlers stated that Workforce Development crew money has been carried over to
this flood. They can work anywhere county-wide and on private property.


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.




       Personnel Director Comstock reported that public health is offering water testing kits.


        The Board commended everyone on the fantastic job in handling the flood situation again
this year.

      Personnel Director Comstock requested that the Board take action to hire Mike Paulson
as Appraiser Trainee beginning at Step 3 of the salary range for this position. His first day of
employment will be June 30th. Motion was made by Commissioner Corcoran, seconded by
Commissioner Graf and unanimously carried to approve the same.

       Assessor Dybing met with the Board to report on legislative changes affecting his office.
The changes to the tax bill has large implications for property owners signed up for Green Acres
Program. From now on Green Acres will be allowed only on productive acres, and woods will
be considered as non-productive. Property owners will receive a letter from the Department of
Revenue indicating that they can opt out of the program before January 1, 2009 with a 3 year
payback. After January 1, 2009 properties no longer eligible for the program will be subject to a
7 year payback. Those who are in Green Acres can remain and are grandfathered in. However,
once you sell land that is no longer eligible for Green Acres, you come out of the program
completely.

        File No. 7 -- Personnel Director Comstock stated that several weeks ago William
Hargrove was identified as the finalist for the Deputy Sheriff vacancy. The POST (Peace Officer
Standards Board) background check has been completed. The next step is to make William
Hargrove a conditional offer of employment so that the POST psychological and physical testing
can be completed. Motion was made by Commissioner Graf, seconded by Commissioner Bjerke
and unanimously carried to make William Hargrove a conditional offer of employment at Step 3
of the salary range for this position.

        Personnel Director Comstock reported that RN Kelli Tornstrom has submitted her
resignation. He requested that the Board approve her resignation and draft a letter thanking her
for her years of service. At this point, the PHN Department is not requesting to fill the vacancy.
Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and unanimously
carried to accept said resignation and to draft a letter of appreciation.

       File No. 8 -- Personnel Director Comstock reported that the Board previously took action
to approve a three year contract with the AFSCME Union. The contract has now been ratified
and signed by the Union. As a point of procedure, it needs to be signed by the Board
Chairperson. Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to authorize the signature of Chairperson Thompson.

       File No. 9 -- At this time Engineer Evans and Maintenance Foreman Molling met with
the Board and requested authorization to accept the following quotes for repairs resulting from
the 2007 Flood utilizing FEMA funds:

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.




       Kimball Paving & Excavating
       CASH 7                                         $33,500.00
       CASH 18                                        $44,750.00
       CASH 21                                        $49,650.00
       CASH 21B                                       $15,550.00
       CSAH 21C                                       $34,725.00
       CASH 22                                        $47,500.00
       CASH 26 West                                   $23,500.00

       Minnowa Construction
       CASH 20                                          $6,750.00
       CASH 25                                          $3,900.00
       CASH 26 East                                     $3,450.00

        There is some concern regarding CASH 21C and the size of culvert to install so that more
erosion is not caused to adjoining property owners. Motion was made by Commissioner
Connery, seconded by Commissioner Corcoran and unanimously carried to accept the quotes as
stated, with the understanding that the CSAH 21C project is contingent upon the approval of
Engineer Evans and Maintenance Foreman Molling.

      File No. 10 -- Engineer Evans requested authorization to accept quotes for consulting
work on bridge replacement projects as follows:
                                                                            Estimated
Roadway Jurisdiction       Roadway           Bridge No. Consultant             Cost
Yucatan Township       Daley Creek Road L2547          LHB                  $22,480.00
Sheldon Township       Houge Hill Road        L4037    LHB                  $18,779.00
Hokah Township         Lorenz Road            L4560    Erickson Engineering $21,700.00
Houston County         CSAH 5                 4044     LBH                  $28,776.00

      Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to accept the quotes as stated.

       File No. 11 -- Engineer Evans reported that the Minnesota Legislature appropriated $26
million in bond funds to assist local units of government in repairing road and bridge damage
subsequent to the August 2007 flood event. This money is now available for projects by
competitive application to local governments located within the seven-county federally-declared
flood disaster area. He indicated that this funding could be utilized to cover the local match on
FEMA funded projects. Also, there are certain repairs that FEMA said were not eligible for
funding. This bond funding could be used to help cover those costs. In addition, he felt that the
bond funds could be utilized for flood proofing our area so that, if another flood event happens, it
will have less of an impact. Houston County has been asked to serve as project sponsor for the
local units of government. Cities and Townships would need to have their applications
submitted to the Highway Department by July 9th, and the County would have to submit their

REGULAR SESSION                                                                        Page     140
.




application by July 15th. It was agreed that a resolution should be drafted whereby the County
will act as project sponsor for the cities and townships in Houston County.

       Maintenance Foreman Molling reported that CSAH #23 is closed indefinitely. The
Eitzen Fire Department has expressed concern regarding access to 10 homes in case of an
emergency. There is a rumor that this road will not reopen, however, this is just a rumor.
Engineer Evans reported that emergency vehicles will be allowed access on CSAH #31, the only
exception being a short period of time when a box culvert is being installed. The Board
commended the Highway Department for the efforts during the flood.

       Maintenance Foreman Molling reported that the new beacon at the airport cost $9,600.
Federal and state funding is being cut back, so he is unsure when we will be reimbursed for this
cost.

       File No. 12 -- Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to reaffirm the adoption of the following resolution which was
adopted at an emergency board meeting dated June 9, 2008:

                         STATE OF EMERGENCY RESOLUTION
                               RESOLUTION NO. 08-32

       WHEREAS, the County of Houston, Minnesota has sustained severe losses of a major
proportion, brought on by flood conditions on the date of June 7 and June 8, 2008,

       WHEREAS, Houston County is a public entity within the State of Minnesota.

       WHEREAS, the following conditions exist in Houston County as a result of the disaster:

        Extensive damages to private homes, potential similar damages to businesses and to local
government such as: loss of rock on roads, deteriorated road shoulders, mud slides and damages
to bridge abutments and extensive damage to the agriculture sector such as: wash out of crops
and failed erosion control devices. In addition, there are undetermined damages to buildings,
roads, bridges, crops, etc. due to rapid rain and being submerged under water.

        NOW, THEREFORE, BE IT RESOLVED, that the Board of Commissioners of Houston
County, acting on behalf of and for the people of Houston County, declare that a state of
emergency exists within Houston County, with all the powers and responsibilities attending
thereto as provided by Chapter 12, Minnesota Statute, and Houston County Resolution titled
Flood Disaster Proclamation, dated June 9, 2008.

        File No.13 -- At this time Joyce Iverson and District Attorney Bublitz met with the
Board. Crest Precast had initially indicated that they would have 38 jobs at not less than $13 per
hour with benefits. Due to a slowing down of the economy, they are asking that this be reduced
to 32 jobs at not less than $11.50 per hour with benefits. Commissioner Corcoran stated this is

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.




realistic since things are slowing down, especially in construction. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
said change.

        File No. 14 -- Joyce Iverson met with the Board and requested approval of a Business
Flood Recovery Loan on behalf of Judy Lonkoski and Rita Christianson, Jake‟s Main Street
Saloon, Inc. in the maximum amount of $12,485.00. Motion was made by Commissioner
Corcoran, seconded by Commissioner Graf and unanimously carried to adopt the following
resolution:

                                 RESOLUTION NO. 08-33

     RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY
                 REVOLVING LOAN FUND LOAN

     WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from Jake’s Main Street Saloon, Inc., and the
Committee and EDA have found that the application complies with the program policies and also
have recommended approval of a loan in the amount of $11,485.00 plus up to $1,000 in loan
origination/closing costs for a maximum total of $12,485.00.

    NOW THEREFORE BE IT RESOLVED that the Houston County Board of Commissioners
hereby approves the loan application for Jake’s Main Street Saloon, Inc., 56 Main Street,
Hokah, Minnesota in the maximum amount of $12,485.00.

     File No. 15 -- Joyce Iverson requested approval of a Business Flood Recovery Loan on
behalf of Loken Auto Sales & Services, Inc. in the maximum amount of $16,382.00. Motion
made by Commissioner Connery, seconded by Commissioner Bjerke and unanimously approved
to adopt the following resolution:

                                 RESOLUTION NO. 08-34

     RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY
                 REVOLVING LOAN FUND LOAN

     WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from Loken Auto Sales & Service, Inc., and the
Committee and EDA have found that the application complies with the program policies and also
have recommended approval of a loan in the amount of 15,382.00 plus up to $1,000 in loan
origination/closing costs for a maximum total of $16,382.00.




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     NOW THEREFORE BE IT RESOLVED that the Houston County Board of Commissioners
hereby approves the loan application for Loken Auto Sales & Service, Inc., 810 East Cedar
Street, Houston, Minnesota in the maximum amount of $16,382.00.

    File No. 16 -- Joyce Iverson requested approval of a Business Flood Recovery Loan on
behalf of Wayne Fitting, Money Creek Haven, Inc. in the maximum amount of $383,115.00.
Motion made by Commissioner Connery, seconded by Commissioner Corcoran and
unanimously approved to adopt the following resolution:

                                 RESOLUTION NO. 08-35

     RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY
                 REVOLVING LOAN FUND LOAN

     WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from Money Creek Haven, Inc., and the
Committee and EDA have found that the application complies with the program policies and also
have recommended approval of a loan in the amount of $382,115.00 plus up to $1,000 in loan
origination/closing costs for a maximum total of $383,115.00.

    NOW THEREFORE BE IT RESOLVED that the Houston County Board of Commissioners
hereby approves the loan application for Money Creek Haven, Inc., 18502 County 26, Houston,
Minnesota in the maximum amount of $383,115.00.

    File No. 17 -- Joyce Iverson requested approval of a Business Flood Recovery Loan on
behalf of Ben and Linda Lind, Alpine Nursery, in the maximum amount of $19,550.00. Motion
made by Commissioner Connery, seconded by Commissioner Corcoran and unanimously
approved to adopt the following resolution:

                                 RESOLUTION NO. 08-36

     RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY
                 REVOLVING LOAN FUND LOAN

     WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from Benjamin and Linda Lind dba Alpine
Nursery, and the Committee and EDA have found that the application complies with the
program policies and also have recommended approval of a loan in the amount of 18,550.00 plus
up to $1,000 in loan origination/closing costs for a maximum total of $19,550.00.

     NOW THEREFORE BE IT RESOLVED that the Houston County Board of Commissioners
hereby approves the loan application for Benjamin and Linda Lind dba Alpine Nursery, 7155
State 76, Houston, Minnesota in the maximum amount of $19,550.00.

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       File No. 18 -- Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to approve the minutes of the emergency session held June 9,
2008.

        Commissioner Connery reported that the StedFast Joint Powers Board agreed to cease
operations based on the Governor‟s veto of the default language bill. Commissioner Connery
recommended that we reaffirm the StedFast Board‟s decision to suspend operations. He
indicated that we had providers lined up and on board, and we may be able to proceed at a later
date. He indicated that, with or without the default language, we would have been in the black
according to the actuarial computations. After discussion, motion was made by Commissioner
Connery, seconded by Commissioner Graf and unanimously carried to reaffirm the StedFast
Joint Powers Board decision to suspend operations until further notice.

       File No. 19 -- Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to adopt the following resolution:

                                   RESOLUTION NO. 08-37

       BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the Houston-Money Creek Snowmobile Club and
authorizes the Board Chairman and the County Auditor to sign an agreement with the
Department of Natural Resources.

        File No. 20 -- Received and filed was an application for abatement on behalf of Christian
Gasset and Elizabeth Gibson-Gasset for Parcel No. 16.0015.001, as the property was incorrectly
classified by the Assessor‟s Office. If approved, this will result in an abatement in the amount of
$396.00. Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke and
unanimously carried to approve the same.

        File No. 21 -- It was agreed that Commissioners Connery, Corcoran and Thompson will
attend the La Crosse County Disposal System Meeting scheduled for July 10, 2008.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 22 -- Correspondence to Ambulance and First
           Responders regarding 2008 funding.

                    File No. 23 -- Correspondence to units of government
           regarding the 2008 auction which is scheduled for August 12, 2008.

                    File No. 24 -- Report of tons delivered to Xcel during April
           2008.

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                  File No. 25 -- Correspondence from the MN Department of
          Finance regarding the Maintenance of Effort and Matching
          Requirements Suspended.

                  File No. 26 -- A Notice of Intent to Issue NPDES/SDS Permits
          to MinnErgy, LLC received from the Minnesota Pollution Control
          Agency.

       There being no further business, motion was made by Commissioner Bjerke, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, June 24, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




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    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, June 24, 2008                         9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Gulbranson; Emergency Manager Kuhlers;
                   Judge Fabian; Court Administrator Larson; Jim Nissen-U.S. Fish & Wildlife
                   Service; Engineer Evans; Maintenance Foreman Molling; Social Services
                   Supervisor Poepping; Personnel Director Comstock; Terry Erickson &
                   Erlene Welshons-Semcac; Joyce Iverson; Reporters Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the June 17, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Bjerke, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

               County Revenue Fund                               $39,569.60
               Road & Bridge Fund                                  26,552.30
                                                                 --------------
               Total                                             $66,121.90
                                                                 ========

        File No. 2 -- At this time Engineer Evans met with the Board to follow up on the
discussion held last Tuesday regarding the availability of $26 million in bond funds to local units
of government for local road and bridge repairs. They are asking counties to act as fiscal agent
for the cities and townships located in their county with a population of under 5,000. Motion
was made by Commissioner Corcoran, seconded by Commissioner Connery and unanimously
carried to agree to act as fiscal agent, and to adopt the following resolution:

                                   RESOLUTION NO. 08-38

       WHEREAS, The Minnesota Legislature appropriated $26 million in bond funds to assist
local units of government in repairing road and bridge damage subsequent to the August 2007
flood event; and


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      WHEREAS, This money is now available for projects by competitive application to local
governments located within the seven-county federally-declared flood disaster area; and

         WHEREAS, Houston County has been asked to serve as project sponsor for the local
units of government;

        NOW, THEREFORE, BE IT RESOLVED that Houston County hereby agrees to serve as
project sponsor for the local units of government.

       Maintenance Foreman Molling reported that all roads are open except CSAH #23 which
is open to local traffic only. CSAH # 31 is open now, but as soon as bridge construction begins,
the bypass will be open to emergency vehicles only.

        Maintenance Foreman Molling reported that CSAH #27 will be used for the detour while
State #76 from Caledonia to Eitzen is being reconstructed. A concrete pipe 84 inches by 184 feet
failed during the flood of 2007. Four quotes were received for repairs with Minnowa
Construction submitting the lowest quote at $24,725.00. The County will pay for the pipe and
traffic control, and Minnowa Construction will do the excavation and the resetting of the new
pipe. The estimated timeframe depends on when we get the concrete pipe, but it needs to be
completed by July 20th as State #76 will be started the week after July 4th, and CSAH #27 needs
to be used as the detour in 3 to 4 weeks. He estimated the total cost to be $109,975.00. This is
not a FEMA road, however, the County intends to make the case to the Federal Highway
Administration that this was damaged by the flood, in the hope that up to 80% would be
reimbursed. Motion was made by Commissioner Corcoran, seconded by Commissioner Connery
and unanimously carried to accept the quote of Minnowa Construction.

       File No. 3 -- At this time, Jim Nissen, U.S. Fish and Wildlife Service, met with the Board
and reported that Houston County received a payment of $42,732.00 for Refuge Revenue
Sharing. This is compensation for the loss of tax revenue on lands that are part of the National
Wildlife Refuge System. This is a large increase over last year‟s payment, as the land was
reappraised and reflects the increase in property values.

        File No. 4 -- Mr. Nissen also reported on the U.S. Fish and Wildlife Service‟s
Environmental Management Program involving Pool 8 islands. They are building four islands in
Houston County. Next year they will be building two islands in Wisconsin. The ultimate goal
is to build back what was there prior to the installation of the lock and dam.

        File No. 5 -- Personnel Director Comstock and Social Services Supervisor Poepping met
with the Board and reported that interviews were held for the two full-time social worker
positions which were previously approved by the Board. These are replacement positions. The
interview committee consisting of Human Services Director Wilms, Social Services Supervisor
Poepping and Mr. Comstock interviewed seven candidates last week and are requesting the
Board‟s approval to hire Christine Chartier at Step 3 and Anna Schoener at Step 1 of the wage
scale for Social Workers. Motion was made by Commissioner Bjerke, seconded by

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Commissioner Graf and unanimously carried to approve the same with one starting next Monday
and the other to start in a few weeks.

        File No. 6 -- Personnel Director Comstock reported on contract settlements with both
LELS (Law Enforcement Labor Services) Unions and requested approval of the three-year
agreements for the years 2008 through 2010. This also resolves an existing Union grievance with
two deputies. Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to approve the two contracts and a memo of understanding
resolving the grievance, and to authorize the signature of Chairperson Thompson.

        Personnel Director Comstock reported that interviews will be held on Friday, June 27th
beginning at 8:30 a.m. for the vacant Deputy Auditor position. Interviews will be held on
Thursday, July 10th at 1:00 p.m. for the Sign Specialist position, and on Friday, July 11th at 8:30
a.m. for the Assistant County Attorney position.

        File No. 7 -- Personnel Director Comstock reported that on-going discussions have been
held regarding the need for a Finance Director. Two commissioners met with Carla Blahnik, a
representative of the State Auditor‟s Office, last week regarding this proposed position.
Commissioner Connery reported that he drafted a job description listing the minimum
qualifications. Ms. Blahnik reviewed the job description and felt it was appropriate. Chairperson
Thompson indicated that she also touched base with Jim Mulder, AMC, regarding the proposed
job description and he also felt it was appropriate. Motion was made by Commissioner
Corcoran, seconded by Commissioner Graf and unanimously carried to advertise for the position
of Finance Director.

       File No. 8 -- At this time the Board met with Terry Erickson and Erlene Welshons,
representing Semcac. Mr. Erickson updated the Board regarding Semcac‟s various programs.
As a result of the flood of 2007, they had to abandon their offices, but were operational in 5 days
at a new site in Winona. Six Months later they moved their corporate headquarters back to
Rushford. During this process they were able to keep all of their programs operating through a
huge group effort. Semcac‟s state funding will be reduced by 1.8% in 2009. He is hopeful that
Semcac‟s federal funding will not be cut. The Semcac food shelf served 2,381 households in
2007 in Houston County. This amounts to 5,334 individuals. Placed on File was a copy of
Semcac‟s 2007 annual report.

        File No. 9 -- Erlene Welshons reported on the need to replace the Semcac bus. The bus
gives approximately 14,000 rides annually. The existing bus has approximately 191,000 miles on
it and maintenance costs are increasing continually. A new bus has been ordered. MN DOT will
fund 80% of the cost, and the remaining 20% must come from a local match. The total cost is
$58,652.00, of which MN DOT will pay $46,921.60 and the local match is $11,730.40. They
have also solicited donations from municipalities in the County. Discussion was held regarding
the fares charged for riding the bus. Ms. Welshons asked that the Board consider donating
$3,000.00 toward the cost of the new bus before the end of the year. The Board indicated that
they would take this under advisement and make a decision at a later date.

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       Commissioner Connery commended Terry Erickson on the excellent job he is doing as
Executive Director of Semcac.

       File No. 10 -- At this time Emergency Manager Kuhlers met with the Board and
requested that the Board take action to approve an Emergency Management Resolution. Motion
was made by Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried
to adopt the following resolution:

                                   RESOLUTION NO. 08-39

                              HOUSTON COUNTY
                      EMERGENCY MANAGEMENT RESOLUTION

A Resolution providing for emergency management and for Protection and Promotion of Public
Safety, Health, and Welfare in the County of Houston during Emergency Situations.

                                            Section 1
                                       Policy and Purpose

Subdivision 1. Because of the existing and increasing possibility of the occurrence of disasters
of unprecedented size and destructiveness resulting from enemy attack, sabotage, or other hostile
action, or from fire, floods, earthquakes, tornados or other natural causes, and in order to insure
that preparations of this county will be adequate to deal with such disaster, and generally to
provide for the common defense and to protect the public peace, health, and safety, and to
preserve the lives and property of the people of this county, it is herby found and declared to be
necessary:

       (a) To establish a county emergency management organization,
       (b) To provide for the exercise of necessary powers during emergencies and the time of a
           natural disaster,
       (c) To provide for the formulation of necessary plans and training to meet the
           requirements of the county mission,
       (d) To provide for the rendering of mutual aid between this county and other political
           subdivisions of the state and of other states with respect to the carrying out of
           emergency management functions.

Subdivision 2. It is further declared to be the purpose of this resolution and the policy of the
county that all emergency functions of this county be coordinated at the maximum extent
practicable with the comparable functions of the federal government, of this state, and
municipalities of the county, and of private agencies of every type, to the end that the most
effective preparations and use may be made of the nation‟s manpower, resources, and facilities
for dealing with any disaster that may occur.


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                                             Section 2
                                            Definitions

Subdivision 1. “Emergency Management” means the preparation for and the carrying out of all
emergency functions, other than functions for which military forces are primarily responsible, to
prevent, minimize and repair injury and damages resulting from disasters caused by acts of
nature, enemy attack, sabotage or other hostile action, flood, tornado, earthquake or other natural
causes. These functions include, without limitation, fire-fighting services, law enforcement
services, medical/health services, rescue, engineering, air warning services, communications,
radiological, chemical and other special weapons defense, evacuation of persons from stricken
areas, emergency welfare services, emergency transportation, existing or properly assigned
functions of plant protection, temporary restoration of public utility services, and other functions
related to civilian protection, together with all other activities necessary or incidental to
preparation for and carrying out of the foregoing functions.

Subdivision 2. “Emergency Management Emergency” means an emergency declared by the
governor under the provisions of Chapter 12, Minnesota Statues, 1957.

Subdivision 3. “Emergency Management Forces” means any personnel employed by the county
and any other volunteer or paid member of the county defense organization engaged in carrying
on emergency management functions in accordance with the provisions of this resolution or any
rule or order thereunder.

                                         Section 3
                      Establishment of Emergency Management Agency

Subdivision 1. There is hereby created within the county government an emergency
management organization, which shall be under the supervision and control of the county
director of emergency management, hereinafter called the “director”. The director shall be
appointed by the Board of County Commissioners for an indefinite term and may be removed by
them for cause. The director shall have direct responsibility for the organization, administration
and operation of the emergency management organization, subject to the direction and control of
the Board of Commissioners. The emergency management organization shall be organized into
such divisions and bureaus, consistent with state and local emergency management plans as the
director deems necessary to provide for the efficient performance of emergency management
functions during an “emergency management emergency”.

Subdivision 2. There is hereby created within the emergency management organization an
emergency management advisory committee, hereinafter-call the “committee”. Members of the
committee shall be appointed by the commissioners to represent county departments and other
groups concerned with emergency management. The chairperson of the County Board of
Commissioners shall be the chairperson, and the director shall be secretary of the committee.
The committee shall advise the director and the Board of Commissioners on all matters


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pertaining to emergency management. Each member shall serve without compensation and shall
hold office at the pleasure of the chairperson.

                                          Section 4
                               Powers and Duties of the Director

Subdivision1. The director, with the consent of the board, shall represent the county on any
regional or state conference for emergency management. He/she shall develop proposed mutual
aid agreements with other political subdivisions of the state for reciprocal emergency
management aid and assistance in an emergency management emergency too great to be dealt
with unassisted, and he/she shall present such agreements to the board for its action. Such
arrangements shall be consistent with the State emergency management plan and during an
emergency management emergency it shall be the duty of the emergency management
organization and emergency management forces to render assistance in accordance with the
provisions of such mutual aid arrangements.

Subdivision2. The director shall make such studies and surveys of the manpower, industries,
resources, and facilities of the county as he/she deems necessary to determine their adequacy for
emergency management and to plan for their most efficient use in time of an emergency
management emergency.

Subdivision3. The director shall prepare a comprehensive general plan for the emergency
management of the county, including the unincorporated areas and shall present such plan to the
Board for its approval. When the Board has approved the plan by resolution, is shall be the duty
of all county agencies and all emergency management forces of the county to perform the duties
and functions assigned by the plan as approved. The plan may be modified in like manner from
time to time. The director shall coordinate the emergency management activities of the county to
the end that they shall be consistent and fully integrated with the emergency management plan of
the federal government and the state and correlated with the emergency management plans of
other political subdivisions within the state.

Subdivision 4. In accordance with the state and county emergency management plans, the
director shall institute training programs and public information programs and shall take all other
preparatory steps, including the partial or full mobilization of emergency management forces in
advance of actual disasters as may be necessary to the prompt and effective operation of the
county emergency management plans in time of an emergency management emergency. He/she
may from time to time conduct such practice warning/alerts or other emergency management
exercises in accordance with the State Warning Plan.

Section 5. The director shall utilize the personnel, services, equipment, supplies and facilities of
existing departments and agencies of the county to the maximum extent practicable. The officers
and personnel of all such departments and agencies shall, to the maximum extent practicable,
cooperate with and extend such services and facilities to the county emergency management
agency. The head of each department and agency, in cooperation with and under the direction of

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the director, shall be responsible for the planning and programming of such emergency
management activities as will involve the utilization of the facilities of his/her department or
agency.

Subdivision 6. The director shall in cooperation with existing county departments and agencies
affected, organize, recruit, and train emergency management wardens, auxiliary firemen,
emergency medical personnel, and any other personnel that may be required on Volunteer basis
to carry out the emergency management plans of the county and the state. To the extent that
such emergency personnel are recruited to augment a regular county department or agency for
emergency management emergencies, they shall be assigned‟ to such departments or agencies
and shall be under the administration and control of said department or agency. The director
may dismiss any emergency management volunteer at any time and require him/her to surrender
any equipment and identification furnished by the county.

Subdivision 7. Consistent with the State Emergency Management Law, the director shall
coordinate the activity of the municipal emergency management organizations and assist in
establishing and conducting training programs to assure emergency operational capability in the
several services (Minnesota Statutes, Chapter 12, Sec. 12.25).

Subdivision 8. The director shall carryout all orders, rules and regulations issued by the
governor with reference to emergency management.

Subdivision 9. The director shall direct and coordinate the general operations of all county
emergency management forces during an emergency management emergency in conformity with
regulations and instructions of state emergency management authorities.

Subdivision 10. Upon instructions from the County Board of Commissioners, the director may
be ordered to direct and coordinate the general operations of all county emergency management
forces during the time of an impending disaster as well as during the time that disaster relief
operations are necessary. The director shall carry out all orders, rules, and regulations issued by
the county board to alleviate the disaster situation.

Subdivision 11. Consistent with the county emergency management plan, the director shall
provide and equip at some suitable place in the county a control center and, if required by the
state emergency management plan, an auxiliary control center to be used during an emergency
management emergency as headquarters for direction and coordination of emergency
management forces. He/she shall arrange for representation at the control center by county
departments and agencies, public utilities and other agencies authorized by federal or state
authority to carryon emergency management activities during an emergency management
emergency. He/she shall arrange for the installation at the control center of necessary facilities
for communication with and between heads of emergency management services, and opening
units of county services and other agencies concerned with emergency management and for
communications with other communities and control centers within the surrounding area and
with the federal and state agencies concerned.

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Subdivision 12. During the first 30 days of an emergency management emergency, if the
legislature is in session or the governor has coupled his declaration on the emergency with a call
for a special session of the legislature, the director may, when necessary to save life or property,
require any person, except members of the federal or state military forces and officers of the state
or any other political subdivision, to perform services for emergency management purposes as
he/she directs, and he may commandeer, for the time being, any motor vehicle, tools, appliances
or any other property, subject to owner‟s right to just compensation as provided by law.

                                         Section 5
                  General Provisions on Emergency Management Workers

Subdivision 1. No person shall be employed or associated in any capacity in the emergency
management agency who advocates or has advocated a change by force or violence in the
constitutional form of government of the United States or in this state or the overthrow of any
government in the United States by force or violence, or who has been convicted of or is under
indictment for information charging any subversive act against the United States. Each person
who is appointed to serve in the emergency management agency shall, before entering upon
his/her duties, take an oath in writing as prescribed by the Minnesota Statutes, Chapter 12,
Section 12.43. It must read substantially as follows:

       “I ______________, do solemnly swear (or affirm) that I will support and defend the
       Constitution of the United States and the Constitution of the State of Minnesota against
       all enemies; foreign or domestic; that I will bear true faith and allegiance to the same; that
       I take this obligation freely, without any mental reservation of purposes or evasion; that I
       will faithfully discharge the duties upon which I am about to enter. And I do further
       swear (or affirm) that I do not advocate, nor am I a member of any political party or
       organization that advocates the overthrow of the Government of the United States or of
       this state by force or violence; and that during such time as I am a member of the
       Houston County Emergency Management Agency, I will not advocate nor become a
       member of any political party or organization that advocates the overthrow of the
       Government of the United States, or of this state, by force or violence.

Subdivision 2. Emergency management volunteers shall be called into service only in case of an
emergency management emergency or a natural disaster for which the regular county services
are inadequate or for necessary training and preparations for such emergencies. All volunteers
shall serve without compensation, except as provided for in Minnesota Statutes 1957, Chapter
12.

Subdivision 3. Each emergency management volunteer shall be provided with such suitable
insignia or other identification as may be required by the director. The state government shall in
a form and style approves such identification. No volunteer shall exercise any authority over the
persons or property of others without his/her identification. No person except an authorized


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volunteer shall use the identification of a volunteer or otherwise represent him/her to be an
authorized volunteer.

Subdivision 4. No emergency management volunteer shall carry any firearms while on duty
except on written order of the county sheriff.

Subdivision 5. Personnel procedures of the county applicable to regular employees shall not
apply to paid employees of the emergency management organization.


                                           Section 6
                                     Emergency Regulations

Subdivision 1. Whenever necessary to meet a emergency management emergency to prepare for
such an emergency for which adequate regulations have not been adopted by the governor or the
county board, the board may by resolution promulgate regulations, consistent with the applicable
federal or state law or regulations, respecting; protection against terrorism, the sounding of
alerts; the conduct of person and the use of property during alerts; the repair, maintenance, and
safe guarding of essential pubic services; emergency health, fire, and safety regulations; trial
drills or practice periods required for preliminary training; and all other matters which are
required to protect public safety, heal, and welfare in emergency management emergencies. No
regulation governing observations of enemy aircraft, air attack, alarms, or illumination during air
attacks shall be adopted or take effect unless approved by the State Director of Emergency
Management.

Subdivision 2. Every resolution of emergency regulations shall be in writing and signed by the
chairperson, shall be dated, shall refer to the particular emergency management emergency or the
disaster situation to which it pertains, if so limited, and shall be filed in the office of the county
auditor where a copy shall be kept posted and available for public inspection at the auditor‟s
office shall be conspicuously posted at the front door of the county courthouse or other
headquarters of the county and at such other places in the affected area as the board shall
designate in the resolution. By like resolution of the board may modify or rescind any such
regulation.

Subdivision 3. The county may rescind any such regulation at anytime. If not sooner rescinded,
every such regulation shall expire at the end of 30 days after its effective date or at the end of the
emergency management emergency or disaster situation to which it relates, whichever occurs
first. Any resolution, rule or regulation inconsistent with an emergency regulation promulgated
by the board shall be suspended during the period of time and to the extent that such conflicts
exists.

                                       Section 7
               Conformity and Cooperation with Federal and State Authority


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Every officer and agency of the county shall cooperate with federal and state authorities and with
authorized agencies engaged in emergency management and emergency measures to the fullest
possible extent consent with the performance of their other duties. The provisions of this
resolution and of all regulations made thereunder shall be subject to all applicable and
controlling provisions of federal and state laws and of regulations and orders issued thereunder
and, shall be deemed to be suspended and inoperative so far as there is any conflict therewith.

                                      Section 8
                     Emergency Management a Governmental Function

All functions hereunder and all other activities relating to emergency management are hereby
declared to be governmental functions. The provision of this section shall not affect the right of
any person to receive benefits to which he/she would otherwise be entitled under this resolution
or under the workmen‟s compensation law, or under an pension law, nor the right of any such
person to receive any benefits or compensation under any Act of Congress.

                                           Section 9
                          Participation in Labor Dispute or Politics

The emergency management agency shall not participate in any form of political activity, nor
shall it be employed directly for political purposes, nor shall it be employed in a labor dispute.

                                          Section 10
                                         Effective Date

This resolution shall take effect on the date of is passage. Adopted by the County Board of
Commissioners on this 24th day of June, 2008.

       Mr. Kuhlers reported that Governor Pawlenty submitted information requesting a
presidential declaration in connection with the June 2008 flood. Once the information is
submitted by Governor Pawlenty, FEMA has 30 days to make a decision. He felt confident that
Houston County will receive the public assistance portion, but not the individual assistance.

       Commissioner Graf reported on a mitigation meeting held last week. He felt there were
several department heads and cities not in attendance who should be involved in this process.
Mr. Kuhlers stated that this plan is crucial. The next meeting is scheduled for August 19th in La
Crescent. They hope to have the plan completed by December. Mr. Kuhlers felt that the key
players were Soil & Water, the Highway Department, Solid Waste/Zoning, the Sheriff‟s
Department, Social Services and Public Health as well as city and township representatives.

       At this time Court Administrator Larson and Judge Fabian met with the Board. Court
Administrator Larson stated that the Board will be receiving a letter from the State Court
Administrator‟s Office indicating that, as of July 1, 2008, they will not be providing public
defender services for any new CHIPS cases or TPR (Termination of Parental Rights) cases.

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They will continue handling their current cases until October 7th, at which time they will no
longer handle those either. Court Administrator Larson indicated that, during the last 12 months,
Houston County had 36 CHIPS and TPR cases. Judge Fabian estimated that in approximately
75% of these cases, the parents were eligible for free attorneys. Court Administrator Larson
reported that area counties had the following number of CHIPS and TRP cases during the last 12
months: Fillmore 19, Dodge 9, Wabasha 16 and Waseca 24. Discussion was held regarding
how attorneys will be funded for these cases in the future. Court Administrator Larson suggested
the possibility of deferring payment on these cases until after the first of the year so the County
has the opportunity to budget for this cost. Judge Fabian indicated that there is disagreement
among the judges in the district as to whether or not counties can be forced to pay these costs.
He suggested the possibility of expanding the court appointed attorney agreement to include
these cases. After discussion, the Board asked that Court Administrator Larson and Judge
Fabian report back with their recommendation.

        File No. 11 -- At this time Joyce Iverson met with the Board. She indicated that the
balance of the Flood Business Loan funds have to be encumbered before the end of the month, or
the remaining funds go back to the state general fund. After discussion, motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to adopt
the following five resolutions subject to the final title and/or UCC research and the acceptance of
loan documents and subject to approval by the EDA Loan Review Committee prior to any
disbursements being made:

                                   RESOLUTION NO. 08-40

     AMENDED RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY
                     REVOLVING LOAN FUND LOAN

        WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from Money Creek Haven, Inc., and the Committee
and EDA have found that the application complies with the program policies and also have
recommended approval of a loan in the amount of $408,578.00 plus up to $1,000 in loan
origination/closing costs for a maximum total of $409,578.00.

      NOW THEREFORE BE IT RESOLVED that the Houston County Board of
Commissioners hereby approves the loan application for Money Creek Haven, Inc., 18502
County 26, Houston, Minnesota in the maximum amount of $409,578.00.

                                   RESOLUTION NO. 08-41

RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY REVOLVING LOAN
                            FUND LOAN

     WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from TRI-STATE AUTO OUTLET CORP, and the

REGULAR SESSION                                                                       Page     156
.




Committee and EDA have found that the application complies with the program policies and also
have recommended approval of a loan in the amount of $397,242.00 plus up to $2,000 in loan
origination/closing costs for a maximum total of $399,242.00.

      NOW THEREFORE BE IT RESOLVED that the Houston County Board of
Commissioners hereby approves the loan application for TRI-STATE AUTO OUTLET CORP,
601 U.S. Highway 16, Hokah, in the maximum amount of $399,242.00.

                                 RESOLUTION NO. 08-42

RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY REVOLVING LOAN
                            FUND LOAN

        WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from La Crescent Rock Products, Inc., and the
Committee and EDA have found that the application complies with the program policies and also
have recommended approval of a loan in the amount of 31,000.00 plus up to $1,000 in loan
origination/closing costs for a maximum total of $32,000.00.

      NOW THEREFORE BE IT RESOLVED that the Houston County Board of
Commissioners hereby approves the loan application for La Crescent Rock Products, Inc., 33781
County Road 6, La Crescent, Minnesota in the maximum amount of $32,000.00.


                                 RESOLUTION NO. 08-43

RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY REVOLVING LOAN
                            FUND LOAN

        WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from William Kistler, Mobile Home Park and
Storage, and the Committee and EDA have found that the application complies with the program
policies and also have recommended approval of a loan in the amount of $109,760.00 plus up to
$1,000 in loan origination/closing costs for a maximum total of $110,760.00.

       NOW THEREFORE BE IT RESOLVED that the Houston County Board of
Commissioners hereby approves the loan application for William Kistler, Mobile Home Park and
Storage, 1711 Grandview Terrace South, La Crescent, Minnesota in the maximum amount of
$110,760.00.

                                 RESOLUTION NO. 08-44

RESOLUTION OF APPROVAL FOR BUSINESS FLOOD RECOVERY REVOLVING LOAN
                            FUND LOAN

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.




        WHEREAS: the Houston County EDA and the EDA Flood Recovery Loan Review
Committee have reviewed a loan application from Frank and Brenda Kimball dba Junction Inn,
and the Committee and EDA have found that the application complies with the program policies
and also have recommended approval of a loan in the amount of $304,599.00 plus up to $1,000
in loan origination/closing costs for a maximum total of $305,599.00.

       NOW THEREFORE BE IT RESOLVED that the Houston County Board of
Commissioners hereby approves the loan application for Frank and Brenda Kimball dba Junction
Inn, to relocate from 480 Mill Street, Hokah, Minnesota in the maximum amount of
$305,599.00.

       Ms. Iverson reported that the two most common questions with loan closing has to do
with the number of jobs and the documentation during the loan regarding the sale of property.
There is a process that the negative covenants refer to and people should be approaching the
EDA and the County Board prior to doing any of those things. Every borrower gets a copy of the
loan documents in advance and she tries to make sure they know what they are signing so that
everything is clear.

       File No. 12 – Motion was made By Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to approve the minutes of County Board of Equalization.

       Commissioner Connery reported on a Mitigation Planning meeting. Many townships
were not in attendance, as Tuesday night is the night of their township meetings.

       Commissioner Bjerke reported on an EDA meeting that he and Chairperson Thompson
attended this morning.

         Commissioner Bjerke reported on EMS and Workforce meetings he attended. He
indicated that fire departments and ambulance services are eligible for a $175.00 coupon for on-
line training.

        Commissioner Connery and Chairperson Thompson reported on a collaborative meeting.
They discussed the lack of funding, and whether the coordinator position will be continued. This
will be discussed further at the July meeting.

       Commissioner Bjerke reported that the Houston County Airport Fly-in is this Saturday,
June 28th at 7:00 a.m.

       Chairperson Thompson reported that there is a Department Head meeting this afternoon
at 1:00 p.m. and suggested that Commissioners Corcoran and Connery attend as the Financial
Director position will be discussed.



REGULAR SESSION                                                                    Page     158
.




      Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 13 -- Correspondence to Payroll regarding the hiring
          of Mike Paulson as Appraiser Trainee.

                   File No. 14 -- Correspondence to Christian Gasset regarding
          approval of his application for abatement.

                   File No. 15-- A summons served by Houston County on the
          City of Caledonia.

                   File No.16 -- First responder/ambulance funding information
          received from La Crescent City, Spring Grove City and Hokah City.

                   File No. 17 -- Correspondence from Jeffery Gerard regarding
          the Criminal Justice Center.

                    File No. 18 -- Correspondence to Kelli Tornstrom thanking her
          for her years of service.

       There being no further business, motion was made by Commissioner Bjerke, seconded by
Commissioner Connery and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, July 1, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                                     Page   159
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, July 1, 2008                 9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Engineer Evans; Personnel Director Comstock; Sheriff Ely;
                   Reporters Warner, Gray & Stotts

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the June 24, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

              County Revenue Fund                            $ 99,801.45
              Road & Bridge Fund                               424,608.80
                                                             ---------------
              Total                                          $524,410.25
                                                             =========

        At this time Engineer Evans met with the Board. He requested authorization to advertise
for resurfacing projects for this year. The proposed projects are on CSAH#26, CSAH#6 and
CSAH#25. Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to authorize advertising for said projects. Engineer Evans stated that
bituminous prices are increasing. Last year the cost was approximately $43 per ton, and he has
heard that the prices are currently in the low to mid $60 range. He indicated that, depending on
how high the bids come in, we may want to reconsider which projects to proceed with.

       Engineer Evans stated that the State 76 project is scheduled to begin on July 7th. They
plan to detour traffic for approximately 30 days. MN DOT and the contractor plan to hold an
informational meeting so the local people know what to expect.




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.




        File No. 2 -- Engineer Evans reported that we were successful in obtaining $235,742.50
in bond funding for the CSAH#31 bridge project. On the recommendation of Engineer Evans,
motion was made by Commissioner Bjerke, seconded by Commissioner Graf and unanimously
carried to adopt the following resolution:

                                  RESOLUTION NO. 08-45

                                       S.A.P. 28-631-01

            Resolution for Bridge Bonding to Construct Bridge No. 28540 & 28J18
                         on CSAH 31 over New York Hollow Creek.


      WHEREAS, The County of Houston has applied to the Commissioner of
Transportation for a grant from the Minnesota State Transportation Fund for the Construction of
County Bridge No. 28540 & 28J18 over New York Hollow Creek; and

        WHEREAS, the Commissioner of Transportation has given notice that funding for this
bridge is available; and

        WHEREAS, The amount of the Grant has been determined to be $311,206.50 by reason
of the lowest responsible bid;

        NOW THEREFORE, be it resolved that Houston County does hereby agree to the terms
and conditions of the grant consistent with Minnesota Statutes, section 174.50, subdivision 5,
clause (3), and will pay any additional amount by which the cost exceeds the estimate, and will
return to the Minnesota State Transportation Fund any amount appropriated for the bridge but
not required.

       Commissioner Bjerke inquired about a copy of a letter received from Davy Engineering
regarding the city owned retention pond in connection with the property Houston County has
been considering as a site for a new Highway Department. Engineer Evans stated that he
received a courtesy copy of this letter, but has not yet had an opportunity to discuss it with
Maintenance Foreman Molling. The letter indicates that the retention pond is not sufficient for
the proposed development in that area. Commissioner Bjerke inquired what specifications
would be required when planning for future draining in the area. Engineer Evans responded that
they would typically plan for 3 inches of rain in a 24 hour period. While it would be possible to
build infrastructure to handle a flood event such as we had last August, it would be cost
prohibitive. Reporter Warner inquired whether anyone who built in that area would have to have
their own study done. Engineer Evans responded that they would have to comply with MPCA
requirements.




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.




        Commissioner Connery inquired whether Engineer Evans has been working with
Emergency Manager Kuhlers on the Hazard Mitigation Plan. Engineer Evans responded that he
was involved early on, but has had little involvement recently. Commissioner Connery stated
that the County had requested a hydraulic study from Mound Prairie to the Root River, but has
received no response. At a meeting held last night the Fish and Wildlife and the DNR were
present to discuss their concerns. Commissioner Connery suggested that this could possibly be
addressed in the Mitigation Plan. Engineer Evans stated that it was his understanding that the
consultant would be contacting department heads to meet with them individually as needed.
Commissioner Connery suggested that Engineer Evans should attend the next meeting.

       Discussion was held regarding a meeting scheduled with the townships involved
regarding a proposed project on South Prairie Drive. Chairperson Thompson indicated that they
are considering a flood retention project whereby the road would act as a dam, or a 48 hour
holding pond.

        At this time Personnel Director Comstock met with the Board. Mr. Comstock reported
that interviews were held for the vacant position of Deputy Auditor. The interview committee is
recommending hiring Michelle Quinn for this position, beginning at step 4 of the appropriate
wage scale. Motion was made by Commissioner Graf, seconded by Commissioner Connery and
unanimously carried to approve the same.

       Personnel Director Comstock reported that the Board had previously approved making a
conditional offer of employment to William Hargrove for the position of Deputy Sheriff. Mr.
Hargrove has met all of the conditions attached to the offer, therefore, he is beginning
employment with the County as of today.

       Sheriff Ely reported that there have been a number of break-ins and cases of vandalism in
the Brownsville area, therefore he has increased the patrol in that part of the county.

       File No. 3 -- Received and filed was an Application for Abatement on behalf of Jason D.
and Melissa Schroeder, Winnebago Township, due to incorrect values and coding. Motion was
made by Commissioner Bjerke, seconded by Commissioner Connery and unanimously carried to
approve the abatement, with the understanding that this will change the 2008 taxes as follows:

                   Original                     Payments
                    2008         Change in         Made           2nd Half
    Parcel #        Tax          2008 Tax       Previously        Tax Due

#16.0027.000       $200.00        ($87.00)         ($100.00)        $13.00
#16.0028.000        984.00      ($149.00)          ($492.00)      $343.00
#16.0039.000      1,006.00         $120.00         ($503.00)      $623.00
                ------------   -------------       ------------   ----------
Total           $2,190.00       ($116.00)        ($1,095.00)      $979.00
                =======         =======            =======        ======


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.




        File No. 4 -- Received and filed were proposed fee changes. After discussion, motion
was made by Commissioner Corcoran, seconded by Commissioner Bjerke and unanimously
carried to approve the fee changes effective July 1, 2008 as follows:

Department/Fee
Employee Time: Research, compile, retrieve data, etc.
(Actual employee cost/per Statute; Billed for actual time, in 15-minute increments)
Existing Fee = $16.80
Proposed Fee = $19.31

Color Copies
Existing Fee = $0.25
Proposed Fee = $1.00

Zoning
Feedlot permits existing = $50 plus .91 per A.U. for application fee.
Proposed change = No charge $0 - We have never collected for this anyway.

Variances existing = $175
Proposed change = $400

Conditional Use permits existing = $250
Proposed change = $300

Rezone/Zoning Amendment existing = $250
Proposed change = $300

       File No. 5 -- Discussion was held regarding Semcac‟s request for an appropriation toward
the purchase of a new bus. It was agreed to discuss this during the budgeting process.

       File No. 6 -- Received and filed was an application for snowmobile trail assistance on
behalf of Viking Ridge Riders. Motion was made by Commissioner Bjerke, seconded by
Commissioner Connery and unanimously carried to adopt the following resolution:

                                  RESOLUTION NO. 08-45

       BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the Viking Ridge Riders Snowmobile Club and
authorizes the Board Chairman and the County Auditor to sign an agreement with the
Department of Natural Resources.

       File No. 7 -- Received and filed was a proposed lease between Heartland Properties, LLC
and Houston County for approximately 963 square feet of office space being utilized by the
Extension Office. This has been approved by County Attorney Bublitz. It was pointed out that

REGULAR SESSION                                                                       Page   163
.




the County must give written notice 60 days prior to February 1, 2009 if they do not wish to
renew the lease. Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve the same and to authorize the signature of
Chairperson Thompson.

       File No. 8 -- Commissioner Graf reported on an Alert received from MCIT regarding a
variance issue in Ottertail County.

        File No. 9 -- Received and filed was correspondence from State Court Administrator Sue
K. Dosal regarding attorneys for parents in child protection cases. While providing attorneys for
the children in these cases is mandated, but providing attorneys for the parents is not. The state
is encouraging counties to assist with funding in this area.

       Commissioner Connery reported on a trails meeting he attended last night. They are
moving forward with exercising options to purchase land from Houston to Mound Prairie. They
have $100,000 for this purpose. They are working with the DOT regarding bringing the trail to
La Crescent, and there is also movement to connect the trail to the Wagon Wheel Trail in
Wisconsin.

       Commissioner Bjerke reported on a Bear Creek Water inspection tour held last week.
They viewed structures in both Minnesota and Iowa to see how they held up in the recent
flooding. He indicated that the structures did an excellent job. They hope to construct several
more structures, however, Iowa funding is not currently available.

      Commissioner Connery stated that Jim Nissen has offered to arrange a tour of the Fish
and Wildlife project in Pool 8. The Board indicated an interest, therefore, Commissioner
Connery indicated that he will contact Mr. Nissen to get the tour scheduled.

       Commissioner Corcoran reported on a Planning Commission meeting held last Thursday
evening.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                    File No. 10 -- A notice of Presidential Declaration in
           connection with the June 2008 flood.

                    File No. 11 -- Correspondence from the AMC regarding
           concerns with budget/state issues.

                      File No. 12 -- Correspondence from the Southeast Minnesota
           Initiative Foundation requesting a 2009 appropriation.



REGULAR SESSION                                                                      Page     164
.




                   File No. 13 -- Budget information received from the Eitzen
          First Responders regarding how they spent last year‟s appropriation.

       There being no further business, motion was made by Commissioner Bjerke, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, July 8, 2008.

                                           BOARD OF COUNTY COMMISSIONERS
                                           HOUSTON COUNTY, MINNESOTA

                                           By: ________________________________
                                                  Ann Thompson, Chairperson

Attest: _____________________________
        Charlene Meiners, County Auditor




REGULAR SESSION                                                                  Page   165
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, July 8, 2008                   9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Engineer Evans; Personnel Director Comstock; Sheriff Ely;
                   Deputy Sheriff Hargrove; Social Services Supervisor Poepping; Zoning
                   Administrator Scanlan; Reporters Warner & Gray

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the July 1, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to approve payment of the following claims:

              County Revenue Fund                           $ 45,044.61
              Road & Bridge Fund                              102,334.56
                                                            ---------------
              Total                                         $147,379.17
                                                            =========

       File No. 2 -- Engineer Evans reported on the bids received for S.P. 28-610-18 which were
accepted until 1:00 p.m. on June 23, 2008:

                      Lunda Construction
                      Black River Falls, WI                  $765,425.96

                      Minnowa Construction
                      Harmony, MN                            $794,928.25

                      Brennan Construction
                      Lansing, IA                            $794,928.25

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to accept the low bid of Lunda Construction in the amount of $765,425.96.


REGULAR SESSION                                                                   Page     166
.




        File No. 3 -- Engineer Evans requested approval of a revised Master Partnership
Agreement with MN DOT. This was approved by former County Attorney Jackson. Motion
was made by Commissioner Bjerke, seconded by Commissioner Connery and unanimously
carried to approve the agreement and adopt the following resolution:

                                  RESOLUTION NO. 08-47

       WHEREAS, The Minnesota Department of Transportation wishes to cooperate closely
with local units of government to coordinate the delivery of transportation services and
maximize the efficient delivery of such services at all levels of government; and

       WHEREAS, Mn/DOT and local governments are authorized by Minnesota Statutes
sections 471.59, 174.02, and 161.20, to undertake collaborative efforts for the design,
construction, maintenance and operation of state and local roads; and

        WHEREAS, the parties wish to able to respond quickly and efficiently to such
opportunities for collaboration, and have determined that having the ability to write “work
orders” against a master contract would provide the greatest speed and flexibility in responding
to identified needs.

Therefore, be it resolved:

    4. That the County of Houston enter into a Master Partnership Contract with the Minnesota
       Department of Transportation, a copy of which was before the Board.

    5. That the proper County officers are authorized to execute such contract, and any
       amendments thereto.

    6. That the County Engineer is authorized to negotiate work order contracts pursuant to the
       Master Contract, which work order contracts may provide for payment to or from
       Mn/DOT, and that the County Engineer may execute such work order contracts on behalf
       of the County without further approval by this Board.

         File No. 4 -- Engineer Evans presented a list of potential projects to be funded by the
2007 bond appropriation for flood damage repairs/mitigation. He stated that FEMA covers costs
to bring roads back to their pre-event condition. However, these conditions could often be
improved upon. Once we know which projects are approved, Engineer Evans will prioritize
them. He is suggesting that we use state aid funds to pay for hiring consultants to do the design
work. Commissioner Bjerke inquired whether we will know by budgeting time whether our
projects are approved for funding. Engineer Evans indicated that he did not know what the
state‟s timeline was. Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to approve submitting the list of projects for funding.



REGULAR SESSION                                                                     Page     167
.




        Engineer Evans reported that MN DOT is holding an informational meeting regarding the
State #76 project tomorrow evening at 6:00 p.m. at the Eitzen Community Center.

      Personnel Director Comstock introduced William Hargrove, who was hired recently as a
Deputy Sheriff.

        File No. 5 -- Chairperson Thompson reported on information received from the AMC
regarding concerns with recent legislation with regard to the short-term offenders going back to
counties, public defender funding and maintenance of effort. Several counties have adopted a
resolution indicating they will take short-term offenders back to St. Cloud. Court Administrator
Larson and Judge Fabian are meeting with the Board on August 5th to discuss public defender
funding. After discussion, it was suggested to schedule an AMC staff person to attend that
meeting also.

       Personnel Director Comstock reported that, as of July 1st, we are contracting with the MN
DOC for Court Services. This department is now known as the Department of Corrections. The
felony probation officer who was here 2 to 3 days a week in the past has now been assigned to
Houston County full-time. They do not intend to hire any additional staff at this time.

       File No. 6 -- Zoning Administrator Scanlan reported on the following application for a
variance which was approved by the Board of Adjustment:

             Dean and Cindy Lager - Brownsville Township - Variance of 36 feet to
             meet the required 50 foot setback from the north property line to build a
             shed

         Mr. Scanlan reported on an application for a variance on behalf of Gerald Olson, Houston
Township, for a variance of 10 feet to meet the required 15 foot setback from the east property
line in a residential district to build a garage. This application was tabled.

       File No. 7 -- Mr. Scanlan reported on an application for a variance on behalf of Robert
Oefstedahl - Spring Grove Township, for a variance of 85 feet to meet the required 1,000 foot
setback from the west rock quarry boundary line to build a home. This application was denied
by the Board of Adjustment based on Criteria #3 and #5.

       File No. 8 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve the issuance of the following Conditional Use Permit:

             Doris Klankowski - Caledonia Township - Run a Level I Home Occupation
             - Quilting business.

        File No. 9 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Connery, seconded by Commissioner Bjerke and unanimously carried to approve
the issuance of the following zoning permits:

REGULAR SESSION                                                                     Page     168
.




        John Dahle - Wilmington Township - Build garage (55‟ x 60‟)

        Daniel Leaver - Union Township - Build garage/workshop (40‟ x 52‟)

        Darryl and Mary Lou Graf - Brownsville Township - Build pole
        shed/commodity shed (74‟ x 60‟) lean-to on barn (fresh cow pen) (74‟ x
        38‟) with less than 20,000 gal manure basin.

        Mark and Shannon Conniff - Union Township - Build house (58‟ x 40‟)
        garage (34‟ x 30‟) porch (10‟ x 6‟) deck (24‟ x 10‟)

        Michael Sieve - Yucatan Township - Build pole shed (32‟ x 70‟)

        Tony Von Arx - Union Township - Build addition on house - no new
        bedrooms (16‟ x 29‟)

        Barb Burroughs - Money Creek Township - Install trailer house (16‟ x 80‟)
        garage (12‟ x 20‟)

        Bob Koch - Wilmington Township - Replace trailer house - 2nd farm
        dwelling (16‟ x 80‟)

        William and Sally Eglinton - Brownsville Township - Build pole building
        (60‟ x 80‟)

        Jason and Trula Vix - Sheldon Township - Build house (64‟ x 36‟) garage
        (34‟ x 36‟)

        Jeff Ross - Mayville Township - Build wood shed (22‟ x 40‟)

        Wayne Houdek - Mayville Township - Build hay/machine shed (40‟ x 80‟)
        heifer barn (216‟ x 60‟) bunker (46‟ x 115‟ x 12‟)

        Leonard Splittstoesser - Black Hammer Township - Build addition on
        house - no new bedrooms (8‟ x 32‟)

        Ray Mark - Houston Township - Build attached garage (30‟ x 34‟) and
        connecting room (10‟ x 20‟)

        Gerald Gross - Spring Grove Township - Build storage shed (24‟ x 36‟)

        Amy Peterson - Sheldon Township - Build house/garage (24‟x 32‟)


REGULAR SESSION                                                                 Page   169
.




            Darrel and Teresa Simon - Money Creek Township - Front porch on house
            (8‟ x 31‟)

            Scott Ritterling - Brownsville Township - Have an extension of original
            2004 application and permit for kitchen addition

            Curtis and Karen Myrah - Wilmington Township - Replace an existing
            home (30‟ x 60‟) and add garage (30‟ x 24‟)

            Joe Burg - Winnebago Township - Build grain bin (20,000 b.u.)

            Charles Ness - Sheldon Township - Build house (26‟ x 46‟) porch (8‟ x
            42‟) breezeway (12‟ x 10‟)

            Matt and Lindsay Mackie - Sheldon Township - Build house and garage
            (64‟ x 26‟)

            Michael and Cindy Volkart - Black Hammer Township - Build pole barn
            (40‟ x 72‟)

       Commissioner Bjerke reported on an EDA meeting held last Wednesday. They did not
have a quorum so they did things on consensus. There are several pending flood business loans.
They will have another meeting in August to approve agenda items.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to place on file the following items from the consent agenda:

                   File No.10 -- Correspondence to Payroll regarding the hiring of
          Michelle Quinn as Deputy Auditor and the hiring of William Hargrove
          as Deputy Sheriff.

                    File No. 11 -- Correspondence to Jason Schroeder approving
          his application for abatement.

                  File No. 12 -- Correspondence from the SE MN Initiative
          Foundation regarding their business brochure.

                   File No. 13 -- Information from the MPCA regarding proposed
          revised underground storage tank rules.




REGULAR SESSION                                                                      Page   170
.




       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, July 15, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                              Page    171
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, July 15, 2008              9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray, &
                   Morehead, Environmental Services Director Frank, Richard Kleist, Engineer
                   Evans, Jail Administrator Schiltz, Highway Accountant Schroeder, Joyce
                   Iverson, John and Eileen Loken, Corrections Officer Patterson, County
                   Attorney Bublitz, Chad Rosendahl, Personnel Director Comstock

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Connery and
unanimously carried to approve the minutes of the July 8, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

              County Revenue Fund                          $104,454.25
              Road & Bridge Fund                             213,366.37
                                                           ---------------
              Total                                        $317,820.62
                                                           =========

        File No. 2 -- On the recommendation of Engineer Evans a motion was made by
Commissioner Bjerke, seconded by Commissioner Graf, and unanimously carried to approve
final payment on behalf of Road Constructors, Inc. for project SAP 28-601-09 in the amount of
$4,121,35, and to adopt the following resolution:

                                 RESOLUTION NO. 08-48

       WHEREAS, Contract No. 172 has in all things been completed, and the County Board
being fully advised in the premises,

        NOW, THEN BE IT RESOLVED, That we do hereby accept said completed project for
and in behalf of the Houston County DOT and authorize final payment as specified herein.
        Engineer Evans provided a brief update on road projects.
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       Jail Administrator Schiltz has expressed a concern regarding county emergency vehicle
access during construction on State Highway 76. There will be a link with updates on the County
website. Engineer Evans reported that he will be attending the weekly meetings with the
contractor in order to remain updated on the project status. Discussion was held regarding dust
control on the township roads which are being utilized by local residents as an alternate route
during construction. Chloride is scarce and not expected to become available until later in July.

        Environmental Services Director Frank, along with Commissioner Connery and
Commissioner Corcoran, attended the La Crosse County Solid Waste annual meeting. He
reported that there will be no increase in fees in 2009 for the landfill or incinerator. Composting
items fees may experience an increase.

        File No. 3 -- Environmental Services Director Frank reported on Minnesota‟s New
Pesticide Collection Program. Counties may agree to residential waste pesticide collections,
agricultural waste pesticide collections, both residential and agricultural collections or no
collections. Environmental Services Director Frank is recommending the County agree to the
cooperative agreement item 2 stating that Houston County will agree to collect residential waste
pesticides periodically every year; and item 5 stating that Houston County does not agree to
collect agricultural (or business) waste pesticides. Motion was made by Commissioner Graf,
seconded by Commissioner Bjerke and unanimously carried to approve signing the cooperative
agreement outlined above.

       File No. 4 -- Environmental Services Director Frank reported that he solicited quotes for
a new overhead door and for roof repair on the Houston County Recycling Center. He received
only one quote in the amount of $3,800.00 from Caledonia Lumber. The quote stated that work
would begin within seven days of bid acceptance. Motion was made by Commissioner Graf,
seconded by Commissioner Bjerke and unanimously carried to accept the bid submitted.

        File No. 5 -- Jail Administrator Schiltz presented an invitation to attend an upcoming
open house at the new Renville County Criminal Justice center. Discussion was held.
Commissioner Connery indicated that he would prefer to wait until a more suitable time to tour
this facility.

        Personnel Director Comstock requested authorization to hire temporary employee, Maria
Betz, to assist the Highway Department with FEMA paperwork. Costs for this position would be
reimbursed through FEMA grants. Ms. Betz is familiar with the office and would require
minimal training because she has worked with them recently through an internship program. The
Highway Department anticipates that this position will last approximately 2 months. Motion was
made by Commissioner Connery, seconded by Commissioner Bjerke and unanimously carried to
approve the hire of Maria Betz.

       Personnel Director Comstock reported that Engineering Supervisor Matt Kopp has
submitted his resignation. He recommended that the Board accept the resignation and draft a

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.




letter thanking Mr. Kopp for his years of service. Motion was made by Commissioner Bjerke,
seconded by Commissioner Connery and unanimously carried to approve the same.

      Personnel Director Comstock requested authorization to advertise for the vacant position
of Engineering Supervisor. Motion was made by Commissioner Corcoran, seconded by
Commissioner Graf and unanimously carried to approve advertising for said position.

       Corrections Services Officer Patterson provided an update on court services since it was
taken over by the State on July 1, 2008. Jennifer Barnes, who had been working part time in
Houston County, has been reassigned to Houston County full time. No additional staffing needs
are anticipated at this time. Next month, Corrections Services Officer Patterson will provide
updates regarding case load numbers.

        Personnel Director Comstock reported that the two probation officers, who were formerly
county employees, are on probation for a period of six months as state employees. They are not
eligible for state health insurance until their 36th day of employment with the state. The Board
had previously approved allowing these officers to remain on county health insurance until they
were eligible for state health insurance. However, one of the employees takes family and
dependent coverage. Both the county and the state require their employees to pay a portion of
the premium for family and dependent coverage. However, Houston County requires payment in
the current month, while the state requires payment a month in advance. This employee is now
in a situation where he is required to make two payments in the same month to maintain
coverage. For this reason, Mr. Comstock asked that the Board pay this employee‟s family and
dependent portion of the premium for the month of July. After discussion, motion was made by
Commissioner Bjerke, seconded by Commissioner Graf and unanimously carried to approve the
same.

        File No. 6 -- Personnel Director Comstock reported that Emergency Manager Kuhlers
was unable to attend today‟s meeting to request the approval of FEMA Sub-Grant Agreement
2000-12127 Amendment 1. The original grant was closed pre-maturely and there was still
$8,493.00 in funds available. The amendment re-opens the grant so that the funds may be
utilized. Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to approve Sub-Grant Agreement 2000-12127 Amendment 1.

        File No. 7 -- At this time Joyce Iverson, John and Eileen Loken and Chad Rosendahl met
with the Board. Joyce Iverson reported that the Lokens have entered into a business flood loan
agreement with Houston County. They have subsequently submitted a letter regarding their
intention to sell the service portion of Loken Auto to Chad Rosendahl on a Contract for Deed
with a five year term. The terms of their business flood loan require them to obtain written
approval from the County prior to selling the property. Discussion was held regarding the
replacement of the damaged hoist. Mr. Loken indicated that the new hoist has been installed,
however, the damaged hoist has not yet been removed. It was clarified that the mortgage with
Houston County involves lots 178, 179 and 223, however, the Contract for Deed involves lots
177, 178, 179 and 180. The Lokens clarified that they are selling the building and the lots to the

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.




west, and they are keeping the lots to the east. County Attorney Bublitz stated that, in her
opinion, the property does not transfer until the last payment is made on the Contract for Deed.
She wants to make clear to the buyer of the property, Chad Rosendahl, that the property he is
purchasing has two loans filed against it, one of which is the Houston County business flood
loan. After lengthy discussion, County Attorney Bublitz recommended that the Board take
action, per the terms of the flood loan, to give their consent to allow the sale to proceed. Motion
was made by Commissioner Connery, seconded by Commissioner Corcoran and unanimously
carried to consent to the sale of the service portion of the business.

       File No. 8 -- At this time the quotes for the county auction were opened and read:

                        Mark Dokken                         7.99%
                        Steve Schuldt                       7.85 %
                        Sanden Realty and Auction           10 %
                        Johnston Auction Service            5%
                        Zenke Auction and Realty, Inc.      6.7 %

      Motion was made by Commissioner Corcoran, seconded by Commissioner Graf and
unanimously carried to accept the low bid of Johnston Auction Service in the amount of 5%.

     Commissioner Corcoran reported on the La Crosse Solid Waste meeting which he and
Commissioner Connery attended last week.

         Commissioner Graf reported on an MCIT meeting which he attended. They reviewed the
rate structure. It was reported that property casualty and workers compensation, rates were down.

       Chairperson Thompson reported on a water planning meeting which she attended in
Rochester. They discussed buffer zones around streams and creeks. Houston County has 10 foot
setbacks, whereas a majority of the state has 50 foot setbacks. The Cannon River Watershed has
contracted to perform a study on stream banks and setbacks. They may be requesting information
from Houston County.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                    File No. 9 -- Correspondence from Semcac requesting 2009
           appropriations.

                   File No. 10 -- Houston Ambulance and Brownsville First
           Responders financial information.

                    File No. 11 -- Report of tons delivered to Xcel during June
           2008


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.




                   File No. 12 -- Transportation Alliance Legislative Update

                  File No. 13 -- AMC – Public Defender Response: Court-
          Appointed Counsel, CHIPS and TPR Cases

       There being no further business, motion was made by Commissioner Connery, seconded
by Commissioner Bjerke and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, July 22, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




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.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, July 22, 2008                9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray, and
                   Morehead; Sheriff Ely; County Attorney Bublitz; Personnel Director
                   Comstock; Maintenance Foreman Molling; Georgia Rosendahl; Rolf Jore;
                   Shirley Johnson; Anita Palmquist

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the July 15, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $52,316.06
              Road & Bridge Fund                               190,469.45
                                                             ---------------
              Total                                          $242,785.51
                                                             =========

       File No. 2 -- Personnel Director Comstock reported that interviews were held for the
vacant position of Assistant County Attorney and recommends hiring Jamie Hammell at step 6 of
the appropriate wage scale. County Attorney Bublitz expressed her views regarding case loads
and the division of duties among the three attorneys in house. Commissioner Connery queried
County Attorney Bublitz regarding time tracking to determine where the bulk of the case load is.
After discussion, motion was made by Commissioner Graf, seconded by Commissioner Connery
and unanimously carried to approve the hiring of Jamie Hammell at Step 6.

        File No. 2a -- Personnel Director Comstock recommended that an amendment be made to
the Agreement for Appointment for the positions of Interim County Auditor and Interim County
Attorney by adding clarifying language to reflect the Board‟s intent that each appointee retain
their status as an employee during the term of their appointment. Motion was made by
Commissioner Corcoran, seconded by Commissioner Bjerke and unanimously carried to approve
said amendment.
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.




       Personnel Director Comstock recommended that the Board take action to hire Anthony
Dockter for the position of Sign Specialist for the Highway Department. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
the same.

        Personnel Director Comstock recommended that the Board take action to change the
status of Case Aide Bonnie Felten from probationary to regular status effective on her six month
anniversary date. Motion was made by Commissioner Connery, seconded by Commissioner
Bjerke and unanimously carried to approve the same.

       File No. 3 -- Personnel Director Comstock presented a proposed rental agreement for the
302 S Pine Street property. The lease agreement would begin August 1, 2008 and end May 31,
2009, or following 30 days notice of lease termination by either party. After May 31, 2009, the
property could go on a month by month lease basis. Motion was made by Commissioner
Corcoran, seconded by Commissioner Bjerke and unanimously carried to approve said
agreement.

       File No. 4 -- Discussion was held regarding a request by County Attorney Bublitz to be
added to the county credit card account established for the Board, the Auditor and the Personnel
Department. Motion was made by Commissioner Connery, seconded by Commissioner Corcoran
and unanimously carried to approve said request.

         File No. 5 -- Chairperson Thompson asked that we request a letter from the SE MN
Initiative Foundation in lieu of a visit from Tim Penny that would explain what the Foundation
has done for Houston County.

        File No. 6 -- At this time members of the Houston County Historical Society met with the
Board. The Historical Society thanked the board for their past and ongoing support. They
reported that they solicited bids for their proposed building project, however, they rejected all
bids because they came in much higher than expected. They are reviewing the building plan, and
feel they can pare it down to save on costs. Their 2009 appropriations request remains the same
as 2008 at $37,200.00, plus $5,000.00 in matching funds. Commissioner‟s Corcoran and Graf
recognized the commitment of the volunteers.

       Chairperson Thompson reported that the Collaborative met last week and voted to
terminate the staff position, which result in a savings of approximately $10,000 per year. The
Human Services Department and Hiawatha Valley Ed District will assume the duties formerly
performed by the staff person.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Corcoran and
unanimously carried to place on file the following items from the consent agenda:



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.




                   File No. 7 -- Correspondence to auctioneers regarding
          acceptance of auction quote

                   File No. 8 -- Correspondence to county attorney regarding state
          audit

                   File No. 9 -- Transportation Alliance Legislative Update

       There being no further business, motion was made by Commissioner Bjerke, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, August 5, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




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.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, August 5, 2008                       9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray &
                   Morehead; Jail Administrator Schiltz; Dick Kleist; County Engineer Evans;
                   Bill Johnston; Ken Johnston; County Attorney Bublitz; Maintenance
                   Foreman Molling; County Assessor Dybing; Assistant Surveyor Mauss;
                   Zoning Administrator Scanlan; Erlene Welshons; Debbie Betthauser;
                   Barbara Jilk; Court Administrator Larson; Scott Simmons; Human Services
                   Supervisor Poepping; Human Services Director Wilms; Judge Fabian

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke, and
unanimously carried to approve the minutes of the July 22, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Bjerke, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

               County Revenue Fund                              $148,653.00
               Road & Bridge Fund                                 455,983.29
                                                                ---------------
               Total                                            $604,636.29
                                                                =========

        File No. 1a -- County Engineer Evans reported on the bids which were received on July
28, 2008 for S.A.P. 28-606-22, S.A.P. 28-625-20, and C.P. 2008-03 (paving projects). Though
there was considerable interest, only one firm, Dunn Blacktop Company, A Division of Mathy
Construction, submitted a bid in the amount of $1,925,194.08. The bid submitted is much higher
than the engineer‟s estimate, mainly due to the increase in the price of bituminous and the fact
that the projects are scattered around the county. Two of the projects are state aid projects.
However, one project must be funded entirely with county funding, and that project alone came
in approximately $79,000.00 higher than estimated. Engineer Evans indicated that his budget is
already tight, and he did not believe there were funds available to cover the overages. He
suggested that the Board may want to consider rejecting the bid and re-advertise the projects next
year. Commissioner Connery commented that the maintenance costs associated with the sections
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.




of road that are in need of paving would negate any investment income that could be earned if
the projects were to be delayed. He questioned if the delay of the projects posed any safety
issues. He felt that, if funds were available in the general fund, it was his preference to see the
projects move forward and be completed. Commissioner Graf questioned whether re-bidding the
projects at a later date would provide any significant savings. Commissioner Bjerke suggested
that Engineer Evans check with the County Treasurer to determine whether there are funds
available to proceed with the project. After discussion, the matter was tabled until the next
meeting.

        Engineer Evans requested permission to advertise for bids for two township bridge
projects, one of which is located in Spring Grove Township on Stateline Road, and the other
being located in Winnebago Township on Quarry Road. Both projects are box culvert style
deficient bridges. Motion was made by Commissioner Bjerke, seconded by Commissioner Graf
and unanimously carried to approve advertising for bids on said bridge projects.

      Maintenance Foreman Molling recommended advertising for the 2008-2009 salt contract.
Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to approve advertising for said contract.

       File No. 2 -- County Attorney Bublitz requested that her department be allowed to
purchase a laptop in the amount of $1,677.91. Motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to approve said request.

       Assessor Dybing requested board approval to purchase an HP printer in the amount of
$1,650.00. This is a budgeted item. Motion was made by Commissioner Connery, seconded by
Commissioner Graf and unanimously carried to approve said purchase.

       File No. 3 – At this time Bill Johnston and Ken Johnston met with the Board and
presented a letter regarding a section marker set by County Surveyor Walter seven years ago on
the Johnston‟s property. Recently, Surveyor Walter returned to the site of the marker and re-set
the point. The Johnston‟s are requesting the marker be returned to its original placement from
seven years ago. It was agreed to have a committee of the Board meet with Surveyor Walter and
the Johnston‟s in an attempt to resolve this matter

       File No. 4 -- Personnel Director Comstock requested approval to hire Hilde Inc. to
perform an actuary study regarding the liability or implicit liability of providing retirees with
health insurance coverage. The fee for the study would be $5,000.00. The State Auditors
informed the County of the need to carry out this type of study every three years. Motion was
made by Commissioner Connery, seconded by Commissioner Graf and unanimously carried to
approve contracting with Hilde, Inc. to perform the study.

        Personnel Director Comstock requested authorization to hire Kelli Tornstrom as an on-
call roster nurse. Motion was made by Commissioner Bjerke, seconded by Commissioner Graf
and unanimously carried to approve said hire.

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.




       Personnel Director Comstock reported that MCIT will be providing a brief overview of
insurance coverage, changes and/or enhancements on Wednesday, August 6, 2008 at 9:00 a.m.

        File No. 5 – Personnel Director Comstock presented an Emergency Management
Performance Grant in the amount of $15,170.00 for board approval. The grant money will be
used for emergency command center upgrades, EOC and tornado sirens. Motion was made by
Commissioner Corcoran, seconded by Commissioner Bjerke and unanimously carried to approve
said grant and to authorize the signatures of Chairperson Thompson and Auditor Meiners.

       File No. 6 -- Zoning Administrator Scanlan reported on the following applications for
variances:

       Gerald Olson – Houston Township - a variance of 10 feet to meet the required 15 foot
       setback from the east property line in a residential district to build a garage

       Tom Vix – Houston Township - a variance of 75 feet to meet the required 130 foot
       setback from the centerline of a State Highway to erect a sign

       Mr. Scanlan reported that both variance applications were denied by the Board of
Adjustment based on Criteria #3, #5 and #6.

        File No. 7 -- On the recommendation of the Planning commission, motion was made by
Commissioner Corcoran, seconded by Commissioner Bjerke and unanimously carried to approve
the issuance of the following Conditional Use Permit:

       Jeromy and Emily Johnson – Brownsville Township - Build a house on less than 40 acres
       in agricultural district.

       File No. 8 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
approve the issuance of the following zoning permits:

       Jeremy and Amy Lee – Spring Grove Township - Build house (36‟ x 60‟) garage (28‟ x
       28‟)

       Adrian Moen – Spring Grove Township - Build addition above attached garage (24‟ x
       24‟)

       Michael Werner – Sheldon Township - Build pole shed (32‟ x 40‟)

       Dave and Jennifer Walter – Hokah Township - Build shed (16‟ x 20‟) deck (20‟ x 20‟)



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       Darin Meyer – Spring Grove Township - Build commodity shed (32‟ x 32‟) and deck on
       house (64‟ x 10‟)

       David Seymour – Crooked Creek Township - Build pole shed (30‟ x 64‟)

       Jason and Kelly Gordon – Mayville Township - Build house and attached garage (44‟ x
       79‟)

       John Pitts – Jefferson Township - Replace flood damaged barn (32‟ x 60‟)

       Ted Klug – Caledonia Township - Build grain bin (5,000 b.u.)

       Ron and Nikki Konkel – Jefferson Township - Build house (60‟ x 36‟) garage (28‟ x36‟)
       deck (12‟ x 16‟)

       Ma Cal Developers, Gary Kruckow/Augedahl Construction and Cabinetry LLC –
       Caledonia Township - Build house (38‟ x 58‟) garage (26‟ x 34‟) covered porch (8‟ x
       32‟)

       Jim Gulbranson – Spring Grove Township - Build stone barn (36‟ x 60‟)

       Jim and Tom Welscher – renew permit for mineral extraction.

       File No. 8a -- Zoning Administrator Scanlan presented the 2008 Annual County Feedlot
Officer Report and the 18-month 2009 County Feedlot Work Plan for Board approval. He
reported that the County is awarded performance credits in the form of grants based on the work
plan. He is expecting a slight increase in performance credits this year. Motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
approve the report and plan, and to authorize the signature of Chairperson Thompson.

        Zoning Administrator Scanlan also reported that he has submitted an educational editorial
to the four local newspapers regarding land use.

        File No. 9 -- At this time members of SEMCAC met with the Board. Semcac Director of
Transportation Erlene Welshons explained the Volunteer Driver Program, its increase of
ridership, the number of Houston County Volunteers and the donation and reimbursement
structure. She is requesting that her 2009 appropriation amount be increased to $3,000.00 to help
support the program. Semcac Senior Services Director, Debbie Betthauser, reported on the
Senior Nutrition Program. She provided statistics regarding ages and income levels of their
congregate meal and Meals on Wheels program users. She also reported on the percentage
increases of food and transportation costs. Ms Betthauser is requesting a 2009 appropriation of
$2,700.00. Barbara Jilk, Senior & Caregiver Advocacy Director, reported that her staff provides
assistance to persons enrolling in Medicare, assists people in acquiring affordable insurance and
healthcare and assists persons enrolling in prescription drug programs. Through their access to a

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.




website, they can make people aware of program options so that individuals can make informed
decisions regarding the programs they choose to participate in. She is requesting a 2009
appropriation for this program in the amount of $2,000.00.

         File No. 10 -- At this time the Board met with AMC Representative Scott Simmons,
Judge Fabian, Court Administrator Larson, Human Services Director Wilms, Human Services
Supervisor Poepping and County Attorney Bublitz regarding court appointed attorneys for the
parents involved in CHIPS cases. The state recently decided to discontinue funding this service.
Human Services Director Wilms expressed her concern that, if parents are not represented,
children may be kept in out of house placement or foster care for extended periods of time. Also,
if their parental rights are terminated, the need for adoptive families will grow. She indicated
that it is the Human Services Department‟s mission to reunify families whenever possible, and
she felt they would be providing a disservice if families are not allowed proper representation.
Also, if parents aren‟t afforded due process, the number of appeals may increase. In these
scenarios the cost to the County will be high as the County funds out of house placement, foster
care, and appeals. Human Services Director Wilms recommended that the cost of attorneys for
parents in CHIPS cases be paid from the County general fund. She felt it would be a conflict of
interest for this funding to come from her department, as this department is bringing up the
charges in these cases. Also, she felt it was important for the public to understand this cost shift
from the state to counties, and that public outcry may force the state to reconsider funding for
this service.

        Scott Simmons, AMC, indicated that this is not a new issue. Rather, it goes back to the
actual elimination of Justice Aid. When the state took over the court system, this state-aid was
taken away with the understanding that counties would not be responsible for these
representation costs. In the interim, the public defender has provided this service utilizing funds
allocated to them by the legislature. Now during the budget crisis, the state is saying that they
are not statutorily obligated to provide this service, therefore, they are no longer providing this
funding. It is the state‟s ultimate strategy to reduce the state budget short-fall, which amounts to
approximately $3.2 million. However, it is estimated that it will cost counties between $9
million and $11 million to replicate this service. Mr. Simmons indicated that the AMC feels
counties should not be required to provide this counsel based on the conflict that develops where
the County is responsible for expenses for prosecution, and also defense of the same case.
However, he suggested that counties consider funding this cost on a short-term basis, as he does
not envision a resolution to this matter yet this year. He recommended that the Board adopt a
resolution to address the issue through the remainder of 2008. He is hopeful that a solution can
be worked out with the state in the coming year.

       Court Administrator Larson has been in contact with the contract attorneys and they are
open to handling the CHIPS cases if an amendment is made to include that type of case in their
contract.

       Judge Fabian commented on the state‟s obligation to provide criminals with
representation, and the fact that criminals make their choices. Parents may lack parenting skills

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.




and they may be doing the best they know how. He felt that it does not make sense not to
provide them with representation. Judge Fabian also commented on the County Board‟s unified
stance on many common sense issues. He indicated that a short term decision regarding county
funding of parents involved in child protective cases will go a long way in shoring up the child
protective system.

       After discussion, it was agreed to table this matter until next week‟s meeting.

         Jail Administrator Schiltz discussed the ramifications of the Short Term offenders being
housed in the county jail. Short term offenders are felony offenders, with the exception of
criminal sex offenders, who have 180 days or less to serve to complete their sentence. Due to
state prison overcrowding, the state is shifting responsibility for housing these offenders back to
the counties. The state pays counties between $10.00 and 30.00 per day. Because Houston
County currently has a 14 bed jail, often these short term offenders must be housed in county
jails other than our own which costs the County $55.00 to 65.00 per day, in addition to mileage
and transportation costs. There is discussion at the state level that this short term offender serving
out sentences in county facilities may increase from 6 months to 9, or even 12 months, increasing
the county‟s financial obligation. These cost shifts are a problem and the AMC wants to see
transparency in government. Taxpayers need to be aware of and understand the implications of
these cost shifts.

        Discussion was held regarding levy limits and the suspension of MOE‟s (Maintenance of
Effort). Scott Simmons stated that the AMC asked the legislature to approve authorization to set
aside Maintenance of Effort and matching fund requirements for the duration of levy limits. This
was included in the tax bill and signed into current law. However, the state has indicated that
counties should ignore this, as the state intends to repeal this early in the next legislative session.
Mr. Simmons indicated that, if all counties were to remove all Maintenance of Efforts, it would
be the state‟s obligation to backfill and this could pose an impact of up to $300 million to the
state. Mr. Simmons stated that the state needs to reconsider how they partner with local units of
government for the efficient and cost-effective delivery of services. He suggested that counties
make prudent decisions regarding MOE‟s.

       File No. 10a -- Following discussion, motion was made by Commissioner Corcoran,
seconded by Commissioner Connery and unanimously carried to reappoint Pam Griffith to the
SELCO Board for a three year term commencing August 1, 2008 and expiring July 31, 2011.

        File No. 11 – Received and filed from Viking Ridge Riders Snowmobile Club was a trail
assistance request. Motion was made by Commissioner Bjerke, seconded by Commissioner Graf
and unanimously carried to adopt following resolution:

                                        RESOLUTION NO. 08-49

      BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the Viking Ridge Riders Snowmobile Club and

REGULAR SESSION                                                                          Page      185
.




authorizes the Board Chairman and the County Auditor to sign an agreement with the
Department of Natural Resources.

       Commissioner Connery reported on a meeting he attended with Hiawatha Valley Mental
Health. They are fiscally sound, but not overly funded.

       Commissioner Graf shared his invitation to attend a meeting with Senator Norm Coleman
which is taking place at the Redwood Café on Thursday August 7, 2008, beginning at
approximately 2:30 P.M. It was agreed to invite all department heads to attend to discuss issues
of concern.

      Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to place on file the following items from the consent agenda:

                    File No. 12 -- A notice of the 2008 MCIT Dividend.

                    File No. 13 -- The Coroner‟s Office 2009 Budget.

                    File No. 14 -- Correspondence from Attorney Scott Anderson
           regarding Houston County vs. City of Caledonia.

                    File No. 15 -- A Transportation Legislative Update received
           from the MN Transportation Alliance.

                    File No. 16 -- Correspondence to units of government
           regarding delivery of auction items.

                  File No. 17 -- Correspondence from NRCS regarding the
           Emergency Watershed Protection Program.




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.




       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Corcoran and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, August 12, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                              Page    187
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, August 12, 2008                      9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray, and
                   Morehead; Sheriff Ely; Jail Administrator Schiltz; Richard Kleist; Steve
                   Bauer; Maintenance Foreman Molling; Engineer Evans

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Corcoran, and
unanimously carried to approve the minutes of the August 5, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

               County Revenue Fund                              $152,654.39
               Road & Bridge Fund                                 257,659.04
                                                                ---------------
               Total                                            $410,313.43
                                                                =========

        Engineer Evans met with the Board to continue the discussion regarding the C.P. 2008-
03, S.A.P. 28-606-22, and S.A.P. 28-625-20 paving projects. He reported that he had consulted
with the County Treasurer and there are general funds available to cover the approximate
$80,000.00 in overages between the engineer‟s estimate and the bid submitted on the C.P. 2008-
03 project. Engineer Evans recommended that the Board approve awarding the contract as
written. Maintenance Foreman Molling reported that maintenance costs could be $16,000.00 to
prepare the road for winter maintenance if it is not resurfaced. Commissioner Graf expressed his
concern regarding state budget short falls, and the subsequent additional cost shifts the state is
passing on to counties. He felt that the only way to send the message to the state that this is
unacceptable, is for the general public to see impact this has by delaying projects. On the
recommendation of Engineer Evans, motion was made by Commissioner Connery and seconded
by Commissioner Corcoran to accept the bid of Dunn Blacktop Company, A Division of Mathy
Construction, in the amount of $1,925,194.08. The motion carried, with Commissioner Graf
voting in the negative.


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.




       Motion was made by Commissioner Connery, seconded by Commissioner Corcoran and
unanimously carried to approve an offer to purchase between 20 and 22 acres of land on the
North Side of Caledonia City adjacent to Highway 76, at a cost of $14,800.00 per acre for a new
Highway Department. Because the school would border the property, it was agreed to meet with
school officials as soon as any purchase agreement is accepted to discuss shared access.

        Sheriff Ely reported that he had reviewed an MCIT vehicle summary and indicated the
need for one correction to the summary. Sheriff Ely encouraged participation at the upcoming
hazard mitigation planning event to be held in Houston at 6:30 p.m. on August 19, 2008. It was
agreed that the Commissioners should contact the townships in their district and encourage
participation in this planning process.

        Personnel Director Comstock met with the Board as a follow-up to the interviews that
were held for the vacant Finance Director position. He reported that there were nine applicants.
Five finalists were identified and interviews were held on August 10, 2008. The qualifications
were reviewed. Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to offer the position to Casey Bradley.

        File No. 1a -- There was discussion regarding which Commissioners would be attending
the 7 Rivers Economic Indicators meeting to be held Wednesday, September 10, 2008 from 7:00
a.m. to 9:00 a.m. It was decided that Commissioners Bjerke and Graf would attend.

        File No. 2 -- It was pointed out that, when the Board approved the economic development
tax abatement for Walnut Street Properties, LLC, a resolution was not adopted. However, a
resolution is required. Motion was made by Commissioner Bjerke, seconded by Commissioner
Graf and unanimously carried to adopt the following resolution:

                                    RESOLUTION NO. 08-50

     Approving a Property Tax Abatement for Certain Property in the City of La Crescent,
    Houston County following Completion of a Commercial Rental Facility by Walnut Street
                                     Properties, LLC.
         WHEREAS, pursuant to Minnesota Statutes, Sections 469.1812 to 469.1815, the Minnesota
State Legislature has authorized cities, school districts, counties and towns to rebate all or part of
their respective portions of a parcel's property tax as an incentive to economic development provided
the designated project meets criteria as established; and

         WHEREAS, the Houston County Board of Commissioners believes that a strong economy is
critical to the continued comprehensive growth and health of Houston County; and

        WHEREAS, the Houston County Board recognizes that many complex factors influence the
economic climate of the area and the Board has and will continue to support diverse efforts to foster
a positive environment for both small and large business growth, attract and retain new corporate
residents, and encourage development of the local labor force; and

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.




        WHEREAS, the Houston County Board has established the Houston County Economic
Development Authority (EDA) which has been designated as the body responsible for reviewing and
acting upon economic development abatement requests and other business subsidies, thereby
replacing the original Abatement Committee; and

        WHEREAS, the Houston County Board of Commissioners held a public hearing on May 13,
2008, following due notice as required by law and a recommendation by the Houston County EDA in
favor of the abatement application of Walnut Street Properties, LLC., dated May 7, 2008; and

       WHEREAS, the Houston County Board of Commissioners has found and determined that:
       1. It expects the benefits to Houston County of the proposed abatement agreement to at least
          equal the costs to the County of the proposed agreement;

       2. The proposed abatement is in the public interest because it will:
          a. Increase the County tax base by creating a new market value of $659,300.00;
          b. Provide new employment opportunities in the County;

       3. The proposed tax abatement otherwise meets or exceeds the County's Business Subsidy
          Criteria because:

          a.   It encourages new commercial construction on a vacant downtown property in the
               City of La Crescent to enable a business expansion and bring a new business to La
               Crescent. Walnut Street Properties, LLC is a partnership of existing business owners
               who have sufficient experience and sufficient other financing to complete the project
               in a timely manner;

          b.   It will encourage a high quality of construction and promote the highest and best use
               of land, consistent with the County‟s Comprehensive Plan, the City‟s zoning
               ordinance, and other local regulations;

          c.   The project will provide needed space for business leasing in the community;

          d.   The project will not significantly and adversely increase the demands for service
               needs in the County;

          e.   The project will create jobs which will pay desirable wages and increase business for
               other local business.


         NOW, THEREFORE, BE IT RESOLVED that the Houston County Board of Commissioners
hereby approves the abatement request of Walnut Street Properties, LLC, subject to the following
stipulations:

       1. The abatement will be payable to Walnut Street Properties, LLC. on the appreciated tax
          capacity in accordance with a development agreement which will specify the terms of

REGULAR SESSION                                                                        Page     190
.




           such payments over ten (10) years beginning with the first year that taxes are due
           following substantial completion of the commercial rental facility.

        2. After full payment of the taxes as due each year:

           a.   In years one (1) through six (6), Walnut Street Properties, LLC will receive a 75%
                abatement of the appreciated tax capacity;
           b.   In years seven (7) through ten (10) they will receive a 50% abatement of the
                appreciated tax capacity

        3. In year eleven (11) and thereafter, Walnut Street Properties, LLC will pay 100% of the
           real estate taxes without tax abatement.

        4. Total abatement granted for the ten (10) years shall not exceed $45,000.00.

        5. The abatement shall not be modified in any way.


        File No. 3 -- In response to AMC‟s August 5, 2008 recommendation, motion was made
by Commissioner Graf, seconded by Commissioner Corcoran and unanimously carried to adopt
the following resolution and to send copies of said resolution to AMC and legislators:

                                      RESOLUTION NO. 08-51

    Opposition To Fund Court-Appointed Counsel In Children In Need Of Protective Services
                  (CHIPS) And Termination Of Parental Rights (TPR) Cases

       WHEREAS, the Minnesota State Legislature has cut $3.8 million from the State Board of Public
Defense budget; and

       WHEREAS, the State Board of Public Defense has terminated the employment of many public
defenders throughout the State; and

       WHEREAS, as of July 8, 2008, the State Public Defender‟s office no longer accepts court
appointments in CHIPS and TPR cases; and

        WHEREAS, the Minnesota State Legislature mandates that District Courts appoint attorneys on
behalf of parents in children in need of protective services (CHIPS and termination of parental rights
(TPR) cases; and

         WHEREAS, prosecutors, defense attorneys, judges and court administrators are in the agreement
that the child protection system cannot properly function without availability of court-appointed counsel
in qualifying cases; and

        WHEREAS, the Houston County Board of Commissioners received no advance notice of this
action nor was the Board consulted in advance by any of the decision-makers; and

REGULAR SESSION                                                                            Page     191
.




        WHEREAS, the Houston County Board of Commissioners desires to provide only temporary,
interim solution to prevent the child protections system‟s collapse.

        NOW, THEREFORE, BE IT RESOLVED by the Houston County Board of Commissioners as
follows:

       1. The Houston County Board of Commissioners recognizes that it has the legal authority to fund
          court-appointed counsel in CHIPS and TPR cases.

       2. The Houston County Board of Commissioners does not concede that it has the legal obligation
          to fund court-appointed counsel in CHIPS and TPR cases.

       3. The County Administrator and Office of County Attorney are authorized and directed to
          negotiate and enter into interim contracts for the provision of legal services for appointment of
          counsel to represent parents in qualifying CHIPS and TPR cases on a temporary basis through
          December 31, 2008.

       4. The County Administrator and Office of County Attorney are authorized to seek a
          Memorandum of Understanding with Court Administration for Houston County District Court.

       5. This matter shall be brought back before the Houston County Board of Commissioners [as
          necessary] [prior to adopting its 2009 levy and budget] [to determine best practices and
          methods to address this matter].

       File No. 4 -- Auditor Meiners recommended closing the License Center on September 24,
2008 in order to allow employees to attend training to educate and inform them on the numerous
changes that have recently been enacted. Motion was made by Commissioner Corcoran,
seconded by Commissioner Connery and carried unanimously to close the License Center on
September 24, 2008.

        Auditor Meiners anticipates a very active General Election on November 4, 2008. In
order to be available to assist the precincts and focus on Election Day duties she is requesting
that the Board consider canceling the Commissioner‟s meeting scheduled for that day. Motion
was made by Commissioner Corcoran, seconded by Commissioner Graf and unanimously
carried to cancel the November 4, 2008 board meeting.

        File No. 5 -- Discussion was held regarding a request for a gambling permit renewal from
the Lancer Youth Hockey Association to conduct lawful gambling activities at Valley High Golf
Course. Motion was made by Commissioner Corcoran, seconded by Commissioner Graf, and
carried unanimously to adopt the following resolution:

                                     RESOLUTION NO. 08-52

       BE IT RESOLVED that the Houston County Board of Commissioners does hereby
approve the Minnesota Lawful Gambling Premises Permit Renewal Application on behalf of

REGULAR SESSION                                                                              Page     192
.




Lancer Youth Hockey Association for gambling activities to be conducted at Valley High Golf
Course in Mound Prairie Township.

      Commissioner Connery reported on a SEMCAC meeting he attended. The purchase of a
new SEMCAC bus was approved. He also reported that he had met with Surveyor Walter and
would be contacting the Johnston‟s for further follow-up of their August 5, 2008 concern.

       Chairperson Thompson reported on a water plan meeting which she attended regarding
the budget.

       Commissioner Graf reported on CJC, MCIT, and Extension meetings which he attended.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Connery and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 6 -- Correspondence to Pam Griffith regarding the
          Board‟s action to re-appoint her to the SELCO Board.

                   File No. 7 -- Correspondence to payroll regarding the hiring of
          Kelli Tornstrom as a roster nurse.

                      File No. 8 -- A SEMCAC appropriation request and annual
          report.

                      File No. 9 -- Detox budget information received from Human
          Services.

                      File No. 10 -- MN Transportation Alliance Legislative Update.

                  File No. 11 -- EDA Final Disbursement Request for Business
          Flood Loans.

                   File No. 12 -- MN Department of Corrections Sentence to
          Serve quarterly report.

                    File No. 13 -- Correspondence from AMC regarding their plan
          to stand up to the administration and Legislature regarding the
          theoretical “partnership” between the state and counties.

                   File No. 14 -- Correspondence from County Attorney regarding
          lawsuits per State Auditor requests.




REGULAR SESSION                                                                       Page   193
.




       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Connery and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, August 19, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                              Page    194
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, August 19, 2008                     9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn, Reporters Warner, Gray, &
                   Morehead; Judge Fabian; Personnel Director Comstock; Dick Kleist; John
                   Meyer; Corrections Officer Patterson; Court Services Officer Barnes; Human
                   Services Director Wilms; Sheriff Ely; Representative Tschumper

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the August 12, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $116,325.06
              Road & Bridge Fund                                 172,840.71
                                                               ---------------
              Total                                            $289,165.77
                                                               =========

        File No. 2 -- Judge Fabian requested approval of an amendment to the current contract
expiring December 31, 2008 for attorney services provided by Rippe, Hammell and Murphy, to
include court appointed counsel to parents involved in CHIPS and TPR cases for a fee of
$5,000.00, with $2,000.00 additional available should a case where a conflict is present arise.
Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and unanimously
carried to approve said contract amendment.

       At this time Corrections Officer Patterson met with the Board to provide an update on the
Court Services Department, since the State took over as of July 1, 2008. She reported on how
offenders process through the court ordered supervision and also on the case numbers of
offenders under supervision. High Risk offenders have contact daily. This type of supervision is
handled by a team based out of Owatonna who Ms. Patterson does not oversee, but which she
works closely with. Once an offender has their classification reduced they will be supervised by
Court Services Officer Barnes, who handles all gross misdemeanor cases and felonies with the
REGULAR SESSION                                                                    Page     195
.




exception of sex offenders and group supervision. Currently, within the County, the number of
active cases are as follows: 215 misdemeanor, 58 gross misdemeanor, 62 felony, 233 paper
supervision, 41 group supervision felony, 9 felony level sex offenders assigned to a sex offender
specific agent, 384 active adults being supervised, and 70 juvenile cases. The number of females
under supervision is increasing and the juvenile population being supervised has committed
crimes with increased severity. Corrections Officer Patterson discussed that local programs are
utilized in an attempt to prevent re-offense. The goal of Corrections Officers is to get offenders
integrated back into communities and for the offenders to become productive citizens. In order to
accomplish these goals there is a need for employment opportunities for offenders. She reported
on the challenges with finding jobs and housing for these individuals.

      File No. 3 -- Personnel Director Comstock reported that the State Auditor will be here on
August 20, 2008 to meet with various department heads regarding the 2007 audit findings.

        File No. 4 -- Personnel Director Comstock recommended that the board authorize hiring
Casey Bradley beginning at Step 5 of the appropriate comparable worth band. Motion was made
by Commissioner Connery, seconded by Commissioner Corcoran, and unanimously carried to
approve the same. It was agreed that two commissioners would be available for Mr. Bradley‟s
orientation.

        Personnel Director Comstock also reported that interviews will be conducted Thursday,
August 21, 2008, for the vacant engineering supervisor position. Interviews will begin at 8:00
a.m. at the County Highway Building. The applicant pool is strong, with four candidates having
degrees in civil engineering.

       Auditor Meiners discussed with the Board the need to hold a meeting in early November.
The scheduled meeting for November 4, 2008 was cancelled due to the election, and the next
scheduled meeting falls on November 11, 2008 when the courthouse is closed in observance of
Veteran‟s Day. It was agreed that the Board would meet on Wednesday, November 12, 2008.

        Commissioner Connery reported that the Tour of Pool 8 - the Upper Mississippi Refuge,
will be held on Wednesday, September 3, 2008. Commissioners and guests will meet at Wildcat
at 5:00 p.m. with the tour beginning at 5:30 p.m.

        At this time the Board had follow-up discussion to the tour of the Courthouse taken
during the August 12, 2008 meeting. Currently, there are no private office spaces available to
house the Finance Director. All available space is being utilized. Even though departments are
diligent in the removal of old files, records retention is necessary and with time the space need to
accommodate records grows. A committee consisting of Commissioners Connery and Corcoran
was formed to address the space needs and explore possibilities, such as moving departments
which function autonomously off-site.

       Commissioner Bjerke reported that he attended a Regional Radio Board meeting with
Scott Yeiter. There was a request for each participating County to pay $500.00 to obtain MCIT

REGULAR SESSION                                                                        Page     196
.




liability coverage. Houston County currently has not yet submitted the fee requested. There is a
grant available for 800 MHz equipment only in the amount of $518,000.00. This would include a
20% match requirement which would equal approximately $8,600.00. This matching amount
depends on the number of counties participating, therefore, a decision regarding participation
affects our neighboring counties. Counties are being urged to budget for this amount for the 2009
budget because the grant will expire in September 2010 and funds need to be disbursed prior to
the grant expiration. There are five proposed sites for towers, and there may be a need for one
additional site within the County. Towers are built on a 50/50 cost share. The County has not
decided which frequency will serve us best, VHF mega band, VHF digital, or 800 MHz. The
State is installing 800 MHz. and funding assistance only applies to those counties who also go
with 800 MHz. Sheriff Ely reported that 800 MHz is wonderful for multiple callers on one line,
but there would still be a need for a narrow band frequency radio for paging. He also reported
that Wisconsin has an 800 MHz system in place and they are moving away from it. Iowa does
not have a statewide system in place. A consultant will be conducting a study to help determine
which radio system will best meet our needs cost effectively.

       Commissioner Connery provided a reminder regarding the Hazard Mitigation Planning
Meeting to be held in Houston at the Community Center tonight, August 19, 2008, beginning at
6:30 p.m. Local units of government have been invited to attend.

      Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 5 -- Public Notice of Special Meeting August 18, 2008
           for Budget Reviews

                    File No. 6 -- Public Notice Closing License Center September
           24, 2008 for staff training

                     File No. 7 -- Report of tons delivered to Xcel during July 2008

                     File No. 8 -- MDH Sanitary Survey Report for Wildcat
           Landing

                     File No. 9 -- Criminal Justice Center Fact Sheet

                    File No. 10 -- Southern MN Initiative Foundation
           correspondence     regarding Southern Minnesota  Regional
           Competitiveness Project




REGULAR SESSION                                                                        Page   197
.




       There being no further business, motion was made by Commissioner Bjerke, seconded
by Commissioner Graf and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, August 26, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                             Page    198
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, August 26, 2008                      9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Reporters Warner, Gray, & Moorhead; Deputy Auditor
                   Quinn; Recorder Bauer; Jail Administrator Schiltz; GIS/E911 Coordinator
                   Krzoska; Environmental Services Director Frank; Dick Kleist; Emergency
                   Manager Kuhlers

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the August 19, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

              County Revenue Fund                               $100,569.50
              Road & Bridge Fund                                  671,892.23
                                                                ---------------
              Total                                             $772,461.73
                                                                =========

       File No. 2 -- At this time Recorder Bauer and GIS/E911 Coordinator Krzoska met with
the Board and requested authorization to pay for storage and delivery media for Pictometry
software out of the Recorder's Compliance Fund at a total cost of $2,285.06. Also, they are
requesting authorization to pay for the Beacon website out of the Recorder‟s Compliance fund, at
a cost of $2,265.00 quarterly. Motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to approve utilizing the Recorder's Compliance
Funding for these items.

        Jail Administrator Schiltz met with the board and reported on data regarding the Criminal
Justice Center Committee he had researched for the County‟s legal counsel.

       Discussion was held regarding the possible publication of the Criminal Justice Fact Sheet
that was prepared and distributed at the County Fair. Commissioner Bjerke expressed that he
favors publishing the information, as the information is good and should be shared.
REGULAR SESSION                                                                     Page     199
.




Commissioner Connery expressed concern about the timing. He felt that it may be more
beneficial to publish this information after the litigation with the City of Caledonia is resolved.
Commissioner Bjerke suggested revisiting the possibility of publishing a “county corner” article
in the county newspaper. It was agreed that Reporter Gray would discuss this with the other
publishers and together, they would prepare some guidelines regarding this idea.

        Emergency Manager Kuhlers met with the board to report that the emergency sirens
within the cities of Houston County have been upgraded so that they may be activated from the
Sheriff‟s office as opposed to being activated on location during an emergency. This upgrade has
been possible through a grant for emergency management enhancements.

       File No. 3 – Emergency Manager Kuhlers presented a bid from Ace Communications
Group in the amount of $4,286.53 to install six drop lines for both phones and computers in the
Commissioner‟s Room for use as a command center in the event of another countywide disaster.
Mr. Kuhlers has funds available from the emergency management enhancement grant and
recommended that the Board take action to accept the bid. Motion was made by Commissioner
Graf, seconded by Commissioner Connery, and unanimously carried to accept the bid of
$4,286.53 from Ace Communications Group to install the command center enhancements.

      Emergency Manager Kuhlers reported that he has obtained a GETS (Government
Emergency Telecommunications System) card, which provides for priority calling in the event of
an emergency. He is in the process of trying to obtain cards for both Sheriff Ely and Chief
Deputy Yeiter.

       Emergency Manager Kuhlers provided updates regarding several grants. To date, 150
clean up assistance, and 32 homeowner assistance grants have been processed. There is still
$16,016.00 available for debris removal. The grant that funds these expires December 31, 2008.
The County received DNR grants for stream debris removal in the amount of $120,000.00 and
$100,000.00. To date, approximately $123,500.00 remains and will expire in June of 2009.
NRCS also obtained an additional $75,000.00 through a federal grant for the same type of debris
removal. Workforce has extended its grant to operate through September 2009. The Emergency
Management office is working with townships to utilize the grants and services available.
Currently the office is in the process of surveying and assessing need.

       Preliminary damage reports for the June 2008 flood have been submitted.

       The County will be receiving Code Red reimbursement in the amount of $3,908.00.

        Emergency Manager Kuhlers reported that the August 19, 2008 Hazard Mitigation
Planning Meeting held in Houston went well. There is a preliminary draft of the plan and it may
be viewed on the County‟s Website under the Emergency Management Department tab. The next
planning meeting is scheduled for October 21, 2008 at 6:00 p.m. in La Crescent. Since
participation in hazard mitigation planning is a requirement for grant eligibility Mr Kuhlers


REGULAR SESSION                                                                       Page     200
.




along with the Hazard Mitigation Plan Consultant will be on hand at the Houston County
Association of Townships meeting to be held in September in order to encourage participation.

        File No. 4 -- Received and filed from Gopherland Trails, Houston Money Creek, La
Crescent, and Viking Ridge Riders Snowmobile Clubs were four trail assistance requests.
Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and unanimously
carried to adopt following resolutions:

                                 RESOLUTION NO. 08-53

      BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of Gopherland Trails and authorizes the Board
Chairman and the County Auditor to sign an agreement with the Department of Natural
Resources.

                                 RESOLUTION NO. 08-54

      BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the Houston Money Creek Trail and authorizes the
Board Chairman and the County Auditor to sign an agreement with the Department of Natural
Resources.

                                 RESOLUTION NO. 08-55

      BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the La Crescent Trail and authorizes the Board
Chairman and the County Auditor to sign an agreement with the Department of Natural
Resources.

                                 RESOLUTION NO. 08-56

      BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the Viking Ridge Trail and authorizes the Board
Chairman and the County Auditor to sign an agreement with the Department of Natural
Resources.

       Chairperson Thompson reported on conference calls with Scott Anderson.

        Commissioner Graf provided information regarding an invitation he received to attend
the Southeast Minnesota Initiative Fund Regional round table discussions being offered locally.
A meeting at the Riverport Inn & Suites will take place on September 9th, 2008, from 1:30 p.m.
to 4:30 p.m. and will be hosted by Kevin Kelleher.



REGULAR SESSION                                                                   Page     201
.




       Commissioner Connery reported that he has received the signed purchase agreement on
the Scheiber property.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 5 -- Southern Minnesota Tourism Association 2009
          appropriations request

                  File No. 6 -- Southern Minnesota Development Corporation
          2009 appropriations request

                   File No. 7 -- Correspondence from Larry Connery regarding
          date change for tour of Pool 8

                   File No. 8 -- MDH - Mobile Home/Recreational Camping
          Inspection report for Wildcat Landing

                   File No. 9 – Correspondence to Representatives Tschumper
          and Pelowski, Senator Ropes and AMC regarding the CHIPS resolution
          adopted by the County Board

       There being no further business, motion was made by Commissioner Connery, seconded
by Commissioner Bjerke and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, September 2, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                                Page   202
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, September 2, 2008                     9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Ann Thompson, David Corcoran and Tom Bjerke

Others Present:     Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray, &
                    Moorhead; Personnel Director Comstock; Maintenance Foreman Molling;
                    County Engineer Evans; Dick Kleist; Wayne Stenberg

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the August 26, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

               County Revenue Fund                                 $41,400.79
               Road & Bridge Fund                                  209,993.43
                                                                 ---------------
               Total                                             $251,394.22
                                                                 =========

       County Engineer Evans reported that the appraisals for proposed property purchases for
highway right of way for the County Road 5 project are being performed. There will be twenty
one land owners affected with more than twenty one parcels affected. Following the completion
of the plat the County will need to purchase the right of ways. Engineer Evans recommended
accepting the low quote of $33,600.00 for consulting fees from Yaggy Colby Associates. The
County worked with this firm in La Crescent and the experience was positive. Motion was made
by Commissioner Corcoran, seconded by Commissioner Bjerke and unanimously carried to
accept the bid of $33,600.00 provided by Yaggy Colby Associates to assist with right of way
purchasing.

       Maintenance Foreman Molling reported that five companies responded to the County‟s
request for salt bids, however, no bids were submitted. He reported that salt isn‟t readily
available, shipping salt into the local area has been problematic and last season depleted local
stockpiles. Mr. Molling also reported that the State is paying $85.00 per ton which is an
approximate 50% increase over last season. Maintenance Foreman Molling is currently working
with another company that believes it can supply the County with the salt it needs. In an effort to
REGULAR SESSION                                                                       Page     203
.




be well prepared for the upcoming winter driving season, more sand is being pulled and
stockpiled and other options such as chloride and brines are being explored. In the future, there
may be other things to consider such as advertising for bids earlier in the year.

      Engineer Evans provided updates regarding the paving projects on County Highway 26
and County Highway 25.

       File No. 2 -- Personnel Director Comstock recommended that the board authorize hiring
Brian Pogodzinski for the vacant position of Engineering Supervisor beginning at the top step of
the appropriate comparable worth band. Motion was made by Commissioner Corcoran, seconded
by Commissioner Graf, and unanimously carried to approve the same.

        Personnel Director Comstock reported that there has been an increase in case loads and
following assessment he is requesting authorization to advertise for a half-time home health aide.
Because home health aides generate billable hours the position is actually funded through those
billings. Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to authorize the same.

       File No. 3 -- There was discussion regarding the participation in an AMC organized
media event to be held at the State capital on Wednesday, September 24, 2008. The event is
being held to express AMC‟s stance regarding Short Term Offenders being housed locally, and
the lack of State funding to cover the expenses incurred by local units of government. It was
agreed that the Commissioners‟ wish to have Houston County represented at the event.

       File No. 4 -- At this time the Board met with Wayne Stenberg who presented the 2008-
2010 Work Plan from Bluff Country Housing & Redevelopment Authority. Mr. Stenberg
explained the research project they hope to have completed regarding housing in Houston
County and the benefits the information gathered may provide. Mr. Stenberg presented a letter to
the board expressing their support of the work plan to be used when applying for grants. Motion
was made by Commissioner Bjerke, seconded by Commissioner Graf and unanimously carried
to authorize the signature of Chairperson Thompson on the letter presented by Mr. Stenberg in
support of the BCHRA‟s work plan.

        Environmental Services Director Frank reported that the State legislature has adopted
legislation making it mandatory for the State Department of Agriculture to collect unused,
unwanted ag chemicals. There will be a collection of ag chemicals at the County Fairgrounds,
Commercial Building on September 15, 2008 from 2:00 p.m. to 4:00 p.m. This is a state funded
collection.

       Environmental Services Director Frank also reported that there will be a Household
Hazardous Waste collection taking place in Caledonia on Thursday, September 4, 2008 from
1:00 p.m. to 6:00 p.m. Unused pharmaceuticals will be collected also.



REGULAR SESSION                                                                      Page     204
.




       Auditor Meiners requested that two Commissioners be appointed to serve on the County
Canvassing Board which is scheduled to meet at 10:00 a.m. on Thursday, September 11, 2008. It
was agreed that Commissioners Connery and Corcoran would participate.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Corcoran and
unanimously carried to place on file the following items from the consent agenda:

              File No. 5 -- Correspondence from MDH regarding Recent
       Revisions to Minnesota Rules, Chapter 4725, Department of Health, Wells
       and Borings. A.k.a. Minnesota Well Code

       There being no further business, motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to adjourn the meeting, the next advertised
meeting being Tuesday, September 9, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                                  Page    205
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, September 9, 2008                  9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray &
                   Moorhead; Personnel Director Comstock; Health Educator Myhre; Zoning
                   Administrator Scanlan; District Manager Tuck; Engineer Evans; Public
                   Health Director Rock; Health Educator Myhre; UW-Madison Nursing
                   Student Rachel Knutson; Winona State Nursing Students Beth Krage &
                   Haley Olson

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to approve the minutes of the September 2, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $ 72,844.51
              Road & Bridge Fund                                166,033.93
                                                              ---------------
              Total                                           $238,878.44
                                                              =========

      File No. 2 -- Engineer Evans reported on the following bids received until 1:00 p.m. on
September 4, 2008 for S.A.P. 28-599-65 and S.A.P. 28-599-66:

             Minnowa Construction, Inc.
             Harmony, MN                                  $252,057.30

             Brennan Construction Co.
             Lansing, IA                                  $299,374.20

             Midwest Contracting, LLC
             Marshall, MN                                 $308,366.50


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.




              VanGundy Excavating LLP
              Houston, MN                                    $319,175.70

       On the recommendation of Engineer Evans, motion was made by Commissioner Bjerke,
seconded by Commissioner Connery and unanimously carried to accept the low bid of Minnowa
Construction, Inc. in the amount of $252,057.30.

       County Engineer Evans requested authorization to award the design project for the bridge
located on County Road 5 between Coral Drive and Kubitz Road to consultant WSN of
Alexandria, Minnesota in the low bid amount of $25,215.00. Motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
authorize accepting the low bid of WSN.

       County Engineer Evans spoke with the Board regarding his recent acceptance of the Eau
Claire County Highway Commissioner position. Mr. Evans has tendered his resignation and
expressed his appreciation for having worked with the Board, the staff and the County as a
whole. The Board expressed their appreciation of the work he has done for the County,
especially the work with the Flood events of August 2007 and June 2008.

        File No. 3 -- At this time Ralph Tuck met with the Board regarding the Emergency
Watershed Protection (EWP) Program. Recently, funds have become available for the work on
three sites covered by two contracts that had previously been “wait listed” pending funding
availability and Mr. Tuck requested authorization to enter into an agreement with the United
States Department of Agriculture NRCS. Motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to approve the authorization of
Mr. Tuck to enter into said agreement pending County Attorney Bublitz‟s approval of said
agreement.

        Mr. Tuck also reported on the Oakforest Lane site covered by the previous agreement.
Oakforest Lane services six homes and was severely damaged. There was discussion held with
the State in which the suggestion was made to have the township take over the road. This option
is not currently available because, in order for a township to assume the road, it must meet
specific standards. If the road were brought up to standard, the township would be able to
consider assuming the roadway. Because of the damage sustained and the grants available to
assist in the repair of the road, it is an opportune time to explore the possibility of Oakforest
Lane going from a private road to a township road. In an effort to explore the needs of the
township and the homeowners involved, Mr. Tuck will be meeting with the town board.

       File No. 4 -- Personnel Director Comstock reported that County Engineer Evans has
submitted his resignation and he recommended that the Board accept the resignation and thank
him for his service to Houston County. Motion was made by Commissioner Corcoran, seconded
by Connery and unanimously carried to accept said resignation with reluctance.



REGULAR SESSION                                                                     Page     207
.




        Personnel Director Comstock recommended advertising for the vacant position of County
Engineer. Commissioner Bjerke suggested looking into the possibility of sharing an engineer
with Fillmore County. It was agreed that all options should be explored. It was further agreed
that advertising should take place and that Commissioner Bjerke would contact the Fillmore
County Board to explore the possibility of sharing a County Engineer. In addition, County
policies and state statutes should be reviewed regarding the possibility of sharing an engineer
between counties.

       Personnel Director Comstock requested authorization to hire Cody Gavin as a temporary
employee to be used as needed for the remainder of the construction season. Motion was made
by Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
authorize the same.

        Personnel Director Comstock reported that the camping season at Wildcat Park is coming
to an end and there will be a Wildcat Park Committee meeting on Tuesday, September 16, 2008
to discuss the season and whether the agreement for park management provided by Ed “Jake”
Lonkoski should be extended for the 2009 season.

       File No. 5 -- Personnel Director Comstock reported that the County would be receiving a
refund from StedFast in the amount of $278,473.41. The refund amount is the amount of capital
contribution provided to StedFast by Houston County, the interest accrued less the amount spent
by StedFast. This refund will be sent to the County on September 12, 2008.

       Personnel Director Comstock also reported that Olmstead County is organizing a local
media event to be held in conjunction with the Short Term Offender Media Event at the State
Capital on Thursday, September 18, 2008. It was agreed that Chairperson Thompson and
Commissioner Connery would participate in both events.

        File No. 6 -- At this time Public Health Nursing Director Rock and Health Educator
Myhre met with the Board to report on the Medical Reserve Corp Program. The MRC is a
database of volunteers. The purpose of County involvement is to recruit and retain volunteers
and to communicate and organize training so that the volunteers of the MRC can assist locally
with Public Health and more widely in the event of an emergency. Health Educator Myhre
requested authorization to apply for a $10,000.00 grant to get the program established. Motion
was made by Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried
to authorize applying for said grant.

        File No. 7 -- Health Educator Myhre also reported on the new tiered approach the MDH
has developed. This tiered approach assesses an agency‟s capability to carry out preparedness
projects. Counties may self select which tier they feel they fit into. Health Educator Myhre
indicated that Houston County fits into the base tier at this time, however, in the future this may
be reassessed and we could move to a higher tier as programs develop to support the additional
responsibilities associated with the advanced tiers.


REGULAR SESSION                                                                       Page     208
.




       File No. 8 -- Zoning Administrator Scanlan reported on the following application for a
variance which was approved by the Board of Adjustment:

            Chris Schaffer - Hokah Township - Variance of 25 feet to meet the required
            50 foot setback from the West side property line to replace a garage
            destroyed by flood.

       File No. 9 -- On the recommendation of the Planning commission, motion was made by
Commissioner Bjerke seconded by Commissioner Graf and unanimously carried to approve the
issuance of the following Conditional Use Permits:

            Christian and Trisha Myrah – Spring Grove Township - Build a house on
            less than 40 acres in an agricultural district.

            Chuck Misch – Houston Township - Build a house on less than 40 acres in
            an agricultural district contingent upon following Township guidelines for
            driveway.

            Jim Scanlan – Mayville Township - Run a Level II Home Occupation –
            mini storage

       File No. 10 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
approve the issuance of the following zoning permits:

            Raymond Stadtler Jr. – Mayville Township - Build shed (26‟ x 36‟)

            Brian and Linda Proudfoot – Hokah Township - Build porch (14‟ x 31‟)

            Dean and Cindy Lager – Brownsville Township - Build shed (50‟ x 64‟)

            Jeffrey Kruckow – Sheldon Township - Install trailer house (16‟ x 70‟) and
            pole building (60‟ x 180‟) with lean-to (15‟ x 80‟)

            Joseph and Jane Michalke – Money Creek Township - Build dwelling (24‟
            x 24‟)

            Chris Hoiland – Yucatan Township - Build house (39‟ x 33‟) garage (28‟
            6” x 22‟) porch (8‟ x 7‟) porch (26‟ 10” x 6‟) screen porch (12‟ 2” x 13‟ 4”)

            Richard Johnson – Mound Prairie Township - Replace calf barn with free
            stall barn (44‟ x 64‟) (no expansion)



REGULAR SESSION                                                                     Page    209
.




           Seth Hargrove – Houston Township - Build additions on house/garage (no
           new bedrooms) – 1st floor addition (15‟ x 15‟) 2nd floor addition (26‟ x
           16‟) garage addition (24‟ x 12‟)

           Dennis Holte – Black Hammer Township - Build pole shed (64‟ x 144‟)
           2nd pole shed (54‟ x 32‟)

           Larry and Sharon Wiste – Black Hammer Township - Build pole shed (36‟
           x 48‟)

           Kirby and Nancy Rahn – Mound Prairie Township - Build deck (12‟ x 24‟)

           Nancy Spanjers – Union Township - Build addition on house (12‟ x 46‟)
           build attached garage (18‟ x 26‟)

           Jeromy and Emily Johnson – Brownsville Township - Build house (26‟ x
           44‟) garage (24‟ x 26‟) deck (10‟ x 10‟)

           Carl Ask, Jr. – Money Creek Township - Build addition on house,
           bathroom and enclosed and porch (12‟ x 30‟)

           Brent Schroeder – Caledonia Township - Build house (50‟ x 48‟) garage
           (32‟ x 32‟)

           Scott Onstad – Black Hammer Township - Build pole shed – replacement
           (45‟ x 63‟)

           Daryl Taylor – Union Township - Build pole shed, garage, barn combo
           (30‟x 48‟)

           Margaret Ann Erkel- Thorson – Sheldon Township - Build garage (24‟ x
           48‟)

           Yucatan Township – Yucatan Township - Build salt shed (20‟ x 40‟)

           David Trehus – Wilmington Township - Build workshop (32‟ x 36‟)

           Judy Mauss and Chris Schafer – Hokah Township - Build pole shed/storage
           (36‟ x 72‟)

       Zoning Administrator Scanlan recommended that the Mineral Rights Extraction Permit
requested by Tim and Bob Welscher be renewed this year. Motion was made by Commissioner
Corcoran, seconded by Commissioner Connery and unanimously carried to approve said permit
renewal.

REGULAR SESSION                                                                Page   210
.




       File No. 11 -- Following brief discussion, motion was made by Commissioner Connery,
seconded by Commissioner Graf and unanimously carried to adopt the following resolution
regarding the Proposed 2009 Levy in the amount of $8,985,004.00.

                                   RESOLUTION NO. 08-57

        BE IT RESOLVED, that the proposed levy after the deduction of County Program Aid
(CPA), in the amount of $8,985,004 be made on all taxable property in the County of Houston
for taxes payable in 2009 in the following amounts by County Fund:

         County Revenue                                                 $5,827,332
         Road & Bridge                                                   2,423,805
         Human Services                                                  1,330,889
         Bond Fund - 2009 Public Project Revenue Bonds (Hwy Dept)          255,483
         Bond Fund - 2009 G.O. Capital Note (Equipment)                    279,660
                                                                        -------------
         Total                                                          10,117,169
         Less CPA                                                      (1,132,165)
                                                                       --------------
         Total Levy                                                     $8,985,004
                                                                       ========

       Commissioner Corcoran reported that he was approached by the owner of Meyer
Furniture to consider the Meyer Furniture building for County space needs. Commissioner
Corcoran and Chairperson Thompson toured the building and expressed the following
impressions with regard to the building: it has a convenient location with adequate parking, it has
10,000 square feet in an open floor plan allowing for easy customization for County needs, there
is ample storage space and a freight elevator, is zoned commercial and would be available
January 1, 2009. Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to enter into a purchase agreement for the Meyer Furniture
Building in the amount of $235,000.00.

       Commissioner Connery reported on a SEMCAC meeting he attended where a new
accounting system was discussed that would allow employees on-line access to payroll
information retrieval. Commissioner Connery also reported that he will be attending a DEED
meeting today in Winona at the Riverport Inn & Suites.

       Commissioner Graf reported on a CJC meeting that he attended where the fingerprinting
requirements of criminals was discussed along with the technology and time in which it takes to
process criminals required to be fingerprinted. Everyone coming into courts with felonies and
gross misdemeanors will be required to be fingerprinted.



REGULAR SESSION                                                                         Page   211
.




       Commissioner Bjerke reported on an EDA meeting he attended where a trail loop
through the city of Houston was discussed. The possibility of county financial assistance was
discussed; however, it was felt since the city of Houston would be benefiting most from the trail,
funding should come from the city and not the county. Commissioner Bjerke reported that
Spring Grove is considering a ten unit addition to their Assisted Living facility. La Crosse
Fabricating is interested in obtaining funding to add more machines that would create an
additional twenty jobs in approximately two years. A detailed listing of hours was requested of
EDA Staff Iverson.

       Discussion was held regarding Bluff Country HRA‟s proposed housing study.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

             File No. 12 -- Correspondence to payroll regarding the hire of Brian
       Pogodzinski

               File No. 13 -- Correspondence to canvassing board members
       indicating that the canvassing Board will convene on September 11, 2008 at
       10:00 a.m. to canvass the results of the September 9, 2008 Primary Election.

             File No. 14 -- A notice of a date change for the Pool 8 Tour to
       Sunday, September 28, 2008 at 1:30 p.m.

       There being no further business and the time being 10:39 a.m. motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to adjourn the
meeting, the next advertised meeting being Tuesday, September 16, 2008.

                                             BOARD OF COUNTY COMMISSIONERS
                                             HOUSTON COUNTY, MINNESOTA

                                             By: ________________________________
                                                    Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                                       Page    212
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, September 16, 2008                    9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:     Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray &
                    Moorhead; County Engineer Evans; Assessor Dybing; Recorder Bauer; Dick
                    Kleist; Kermit McRae; Public Health Director Rock; Kerri Gordon; Ann St
                    Claire; Health Educator Myhre; Attorney Bublitz; Environmental Services
                    Director Frank; WSU Nursing Student Andrea Gush

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the September 9, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

               County Revenue Fund                                $ 94,849.20
               Road & Bridge Fund                                  135,620.81
                                                                 ---------------
               Total                                             $230,470.01
                                                                 =========

        Recorder Bauer met briefly with the board to discuss the purchase of flat screen monitors
and a laptop for the recorder‟s office. The purchases will be paid for out of the recorder‟s office
technology fund.

       File No. 2 -- Engineer Evans reported on the township sign replacement program. The
county is responsible for program implementation and oversight. The funding is shared, 80%
Federal funding, 15% County funding and the remaining 5% Township funding. The Board has
previously approved the contract for Phase I of the project and Engineer Evans requested
approval for Phase II which includes contracts between Houston County and the 17 townships.
Kermit McRae indicated that the program is significant in maintaining the safety of our
roadways. Motion was made by Commissioner Graf, seconded by Commissioner Connery and
unanimously carried to approve the Phase II contracts for the Township Sign Program and to
authorize the signatures of Chairperson Thomson and Auditor Meiners.
REGULAR SESSION                                                                       Page     213
.




      Kermit McRae reminded the Board of the meeting of the Houston County Association of
Townships to be held on Wednesday, September 17, 2008 at the Back 40 Supper Club.

        Engineer Evans requested authorization to advertise for bids for the township sign
project. Motion was made by Commissioner Bjerke, seconded by Commissioner Corcoran and
unanimously carried to authorize said advertising.

        File 2a -- Engineer Evans reported that he, Maintenance Foreman Molling, and
Commissioner Connery met with Oertel Architects to discuss the proposed Highway Department
Building. Oertel Architects specializes in public works buildings, with a lead architect having
over 30 years experience. They are well prepared to assist the County with the design of the
proposed building. Currently, the City has requested a site layout plan with ponding areas
identified, and Oertel Architects is willing to prepare the plan on an hourly consulting fee basis.
Total consulting fees are expected to be between $4,000.00-8,000.00. A letter of engagement has
been requested of Oertel Architects and Engineer Evans requested that the Board act to retain
their services. Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to retain the services of Oertel Architects.

       File No. 3 -- Public Health Director Rock presented provider contracts for the period
October 1, 2008 thru September 30, 2009 and recommended Board approval. The contracts do
not include assisted living because the new rates are not yet available. Motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to approve the
contracts with the following vendors:
                        Affordable Professionals, Inc.
                        Robert Bray
                        Caledonia Care & Rehab – Buckley Apartments
                        Caledonia Care & Rehab
                        DMT Home Health Service, LLC
                        Franciscan Skemp Health Care – Eldercare
                        Global Home Health Care
                        Golden Living Center
                        Good Samaritan Home Care Agency
                        Heartland Security
                        Darrel Houdek
                        John Ingvalson, dba Ingvalson Construction and Snow Removal
                        International Quality Home Care Corporation
                        International Quality PCA, LLC
                        La Crescent Meals on Wheels
                        Lutheran Social Services of Minnesota
                        Josh Meyer, dba Josh‟s Lawn Service
                        Michael Meyer, dba Meyers Lawn Service
                        Purfoods, LLC, dba Mom‟s Meals
                        Neighbors in Action

REGULAR SESSION                                                                       Page     214
.




                     Jim Peterson
                     Quality Living Home Health Care, Inc.
                     Lorraine Schmitt
                     SEMCAC
                     SEMCIL
                     Dave Thiele
                     Tweeten Lutheran Health Care Center
                     Kyle Vaaler
                     Valley View Nursing Home
                     Dennis Vesterse
                     Steven Welke

       Public Health Director Rock indicated that Public Health Accountant Lillegraven
prepared the Public Health contracts and deserves acknowledgement.

        File No. 4 -- Maintenance Foreman Molling met with the Board to provide multiple bids
related to road maintenance and recommends the acceptance of the following submitted by
Mathy Construction Company:

       2007 Flood Repairs
       CSAH #6 - bridge abutment replacement              $7,130.00
       CSAH #9 - 8 spots                                 $28,440.00
       CSAH #13 - guardrail installation                $149,390.00

The above listed maintenance should qualify for 100% reimbursement through Federal Highway
Funding.

       2008 Flood Repairs
       Highway 249 – bituminous                          $18,270.00

The above cost should qualify for an 85% FEMA reimbursement.

       Normal Maintenance Projects
       CSAH #26 – failed culvert repair     $3,050.00 & $3,460.00
       CSAH #6 – sunken bridge approach repair          $8,670.00

       2007 Flood Repairs
       Paving on CSAH 21, 25, 30, & 26                   $76,096.00

The above costs should qualify for 100% reimbursement through FEMA.

      Motion was made by Commissioner Connery, seconded by Commissioner Corcoran and
unanimously carried to accept the above listed bids from Mathy Construction Company.


REGULAR SESSION                                                                  Page    215
.




       On the recommendation of Maintenance Foreman Molling motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
accept the bid of H & R Construction in the amount of $48,441.25 to re-install guardrail on
County 13.

        Following brief discussion and on the recommendation of Personnel Director Comstock,
motion was made by Commissioner Graf, seconded by Commissioner Bjerke and unanimously
carried to accept the bid submitted by Statdler Masonry in the amount of $3,212.00 to repair the
east steps of the courthouse.

       Personnel Director Comstock reported that the County has two student workers in the
Human Services Department and one at the Highway Department. The student workers are from
the Caledonia High School Business Program and are paid minimum wage by the County.

       File No. 5 -- Personnel Director Comstock requested authorization to complete a
Comparable Worth Review of positions identified on the 2008 rotation schedule. Motion was
made by Commissioner Bjerke, seconded by Commissioner Graf and unanimously carried to
authorize said review.

       On the recommendation of Human Services Supervisor Bahr, motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to change the
status of Child Support Officer Massman from probationary to permanent effective on her
anniversary date.

       File No. 6 -- Personnel Director Comstock reported that the four year appointment term
of County Assessor Dybing will expire at year end. He explained the options the County had
regarding the position. It was agreed that the Commissioner‟s are pleased with the job Assessor
Dybing is doing. Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to appoint Mr. Dybing to a four year term as County
Assessor, said term to expire December 31, 2012.

       Personnel Director Comstock reminded Wildcat Park Committee Members of the
meeting scheduled for 1:00 p.m. today in the Commissioner‟s Room.

       File No. 7 -- At this time Kerri Gordon and Ann St Claire met with the board to provide
information about ClearWay Minnesota, a non-profit organization set up to reduce tobacco‟s
harm within Minnesota. They provided statistics and information about Minnesota‟s smoking
population, their efforts with regard to Minnesota‟s Freedom to Breathe Act that went into affect
eleven months ago and also on the Quitplan services they offer.

       File No. 8 -- Environmental Services Director Frank along with County Attorney Bublitz
met with the Board to report that the Minnesota Court of Appeals affirmed the District Court
decision with regard to Solum vs. Houston County Board of Commissioners.


REGULAR SESSION                                                                     Page     216
.




       File No. 9 -- Following brief discussion, motion was made by Commissioner Graf,
seconded by Commissioner Bjerke and unanimously carried to authorize the signature of
Chairperson Thompson on agreements for Federal Emergency Funding to repair damages to the
Snowmobile Trails in Houston County.

        File No. 10 -- Auditor Meiners reported that the statewide recount of Supreme Court Seat
will be held tomorrow, Wednesday, September 17, 2008 in the Commissioner‟s Room and that
the State will be requesting that we enter into a contract with them in order to qualify to receive a
nominal fee to perform recount duties.

       File No. 11 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to authorize the signature of Chairperson Thompson on a
representation letter to State Auditor Otto regarding the 2007 audit.

       Commissioner Corcoran reported on a solid waste meeting he recently attended.

       Commissioner Graf reported on a 7 Rivers Region Economic Summit meeting he
attended. He also reported on a DEED meeting he attended in Winona on Wednesday,
September 10, 2008.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

               File No. 12 -- Correspondence regarding tons to Xcel during August
       2008

             File No. 13 -- Correspondence to payroll regarding the hiring of
       Cody Gavin as a temporary employee in the Highway Department

              File No. 14 -- Correspondence to unsuccessful bidders for project
       S.A.P. 28-599-65 & S.A.P. 28-599-66

              File No. 15 -- Correspondence from Bart Brevins, DEED,
       authorizing the use of $97,000 administrative funds for business flood loans

             File No. 16 -- Correspondence from Duane Bakke regarding his
       campaign for 2nd Vice President of AMC

               File No. 17 -- Transportation Alliance Update dated 9/12/2008

               File No. 18 -- AMC Update dated 9/11/2008

               File No. 19 -- MN Appellate Courts - Notice that the Court‟s opinion
       on the Solum issue will be filed on 9/16/08 at 10:00 a.m.

REGULAR SESSION                                                                         Page     217
.




       There being no further business and the time being 10:35 a.m., motion was made by
Commissioner Graf, seconded by Commissioner Connery and unanimously carried to adjourn
the meeting, the next advertised meeting being Tuesday, September 23, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                             Page    218
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    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, September 23, 2008                   9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray, &
                   Moorhead; Public Health Director Rock; Sheriff Ely; Winona County Sheriff
                   Brand; Personnel Director Comstock; Zoning Administrator Scanlan; Court
                   Administrator Larson; Finance Director Bradley; Jail Administrator Schiltz;
                   County Engineer Evans; Maintenance Foreman Molling; Engineering
                   Supervisor Pogodzinski; Emergency Manager Kuhlers; WSU Nursing
                   Student Leah Higbe; County Surveyor Walter

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the September 16, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Bjerke, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

               County Revenue Fund                          $    37,444.37
               Road & Bridge Fund                            1,660,427.31
                                                            -----------------
               Total                                        $1,697,871.68
                                                            ==========

        File No. 2 -- Court Administrator Larson recommended that the Board accept the bid
submitted by Rippe, Hammell, & Murphy in the amount of $26,000.00, with $3,000.00 in case of
conflict, to provide court appointed attorney services, said contract to expire December 31, 2010.
No other bids were received. Motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to accept said bid.

      Engineer Evans introduced Engineering Supervisor Brian Pogodzinski. The Board
welcomed Mr. Pogodzinski.

       At this time Sheriff Ely and Winona County Sheriff Brand met with the board. There was
discussion with regard to how the county housing of Short Term Offenders is affecting both
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Houston and Winona Counties. Currently, Houston County has fifteen inmates being housed
outside of the County, and thirteen being housed within the County. These numbers far exceed
the twelve that the county has space for. In addition, both counties are experiencing a need for
additional Transportation Officers. Because the position is on an as needed and on-call basis, it is
difficult to retain persons hired for the position.

         Sheriff Brand reported that Winona County is also in need of a new jail facility. Sheriff
Brand reported that Winona County was able to manage some space problems by remodeling the
basement of their current facility to be used as housing for up to twenty Huber and sentence to
serve inmates, however, Winona County is still housing inmates in Goodhue County because its
twenty-eight bed facility is full. Winona County is able to house up to eight female offenders and
has accepted Houston County female offenders on occasion. Neither Houston nor Winona has
facilities to house juveniles.

      Sheriff Brand also reported that home monitoring of offenders is not used extensively in
Winona County. Jail Administrator Schiltz stated that the jail population in Houston County
would double if the County was not utilizing home monitoring.

       Sheriff Brand took this opportunity to present Houston County and Sheriff Ely with a
plaque in appreciation of the assistance they have provided to Winona County recently. He
expressed his appreciation of the working relationship the counties and the Sheriff‟s Departments
share. He reported that staff, teams and equipment have been shared between the two counties
and departments, and it has been beneficial. He hopes that the collaboration between the entities
continues in years to come. Sheriff Ely stated that the collaboration works both ways, and he
expressed his appreciation for the numerous times Winona County has aided Houston County
during emergency situations.

        Kurt Kuhlers reported that he has now been certified as an Emergency Manager in the
State of Minnesota.

       Jail Administrator Schiltz reported on a Jail Administrators conference he recently
attended. The conference provided helpful information with regard to prisoners suffering from
mental health issues. This is a population that continues to increase.

         Jail Administrator Schiltz also reported that the concerns brought up by OSHA that affect
the jail have been addressed.

       File No. 3 -- Public Health Director Rock met with the Board to discuss the possibility of
providing County employees with flu vaccinations free of charge. WSU Nursing Student Leah
Higbe reported that each month influenza deaths equal the loss of life on September 11, 2001,
that one influenza case may cause an additional twenty cases; persons infected with influenza
shed the virus twenty-four hours prior to suffering symptoms; and that an individual may be
charged with DUI once alcohol has impaired his/her functions by 10% but a person suffering
from influenza may be impaired as much as 40-50%. In addition, Ms. Higbe reported the

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following statistic that figures an employer may save approximately $237.00 per employee by
providing flu vaccinations. This figure would be the savings the employer would reap as a result
of having healthy employees because ill employees would cost the employer in sick time paid,
and loss of productivity. She also reported that vaccination is the #1 way to prevent flu,
following that, prevention methods would include covering your cough and washing of hands.
Public Health Director Rock reported that the cost of the vaccine, syringe, and alcohol wipes is
$11.50, while the administrative cost is $8.50. She is proposing that the County pay the $11.50
and Public Health would cover the $8.50 in administrative costs. Public Health Director Rock
would expect a 65% participation rate if flu vaccinations were offered to the Counties 190
employees. Motion was made by Commissioner Bjerke, seconded by Commissioner Connery
and unanimously carried to offer flu vaccinations to employees by first billing insurance carriers.
If insurance will not cover the vaccination, the County will cover the $11.50 and Public Health
will cover the $8.50 in administrative costs.

        File No. 4 -- Personnel Director Comstock met with the Board with regard to insurance
negotiations. Mr. Comstock reported that the insurance portion of union contracts was left open
in an effort to ratify the balance of the union contracts with insurance to be discussed later.
Personnel Director Comstock, Commissioners Connery and Corcoran along with representatives
from the Southeast Service Coop, Blue Cross and Blue Shield, and each employee union met to
discuss plan design changes. Information was discussed regarding insurance usage, and savings
that could be realized with regard to several options. The unions agreed to the following changes
and Personnel Director Comstock recommended the Board approve the following:

       - Join the Service Coop
       - Eliminate the 100% accident coverage
       - Replace the Preferred Gold plan with a $1500/$3000 CMM plan
       - Change the funding: Single coverage shall be either $592.50 per month or 95% of the
         single premium for the $500/$1000CMM plan, whichever is greater
       - Family and dependent coverage shall be equal to 85% of the family rate for the
         $1500/$3000 CMM plan

       Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to approve the above listed changes with regard to employee health
insurance coverage.

        File No. 4a -- Personnel Director Comstock requested authorization to hire Jesse Breault
as a Transport Matron and Matthew Muenkel as a Transport Officer. Both positions are on an as
needed basis. Motion was made by Commissioner Graf, seconded by Commissioner Corcoran
and unanimously carried to approve the hire of both Breault and Muenkel.

      File No. 4b -- Personnel Director Comstock reported that during the recent Wildcat Park
Committee meeting Mr. Lonkoski expressed interest in managing the park again in 2009. There
were no reported complaints during the 2008 season; therefore, the Wildcat Park Committee
recommended the County enter into a contract with Mr. Lonkoski to provide park management

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.




services for the 2009 camping season. Motion was made by Commissioner Corcoran, seconded
by Commissioner Bjerke and unanimously carried to approve said contract and to authorize the
signature of Chairperson Thompson.

        At this time Engineer Evans met with the board with regard to the proposed Highway
Department Building. Engineer Evans requested that the Board identify which departments, in
addition to Highway, may be utilizing the proposed building so that Oertel Architects may begin
site plan preparation. The Highway Department Building Committee identified the following:
Highway, Surveyor, Solid Waste function, Sheriff‟s Department – secure space for evidence
processing and office for paperwork completion, a meeting room, motor vehicle and a common
reception area. Following discussion it was agreed that the list the committee presented was
correct.

       File No. 5 -- Zoning Administrator Scanlan reported on the following applications for
variance which were approved by the Board of Adjustment:

            Robert Beutler – Brownsville Township - Variance of 370 feet to meet the
            required ¼ mile setback for a replacement house from a registered feedlot.

            Mark and Jennifer Nutt – Caledonia Township - Variance of 100 feet to
            meet the required ¼ mile setback for a replacement house from a registered
            feedlot.

        File No. 6 -- On the recommendation of the Planning commission, motion was made by
Commissioner Corcoran seconded by Commissioner Graf and unanimously carried to approve
the issuance of the following Conditional Use Permits:

            Mark and Jennifer Nutt – Caledonia Township - Build a house on less than
            40 acres in an agricultural district.

            Bob Koch – Wilmington Township - Construct a manure holding basin.

       File No. 7 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to approve the
issuance of the following zoning permits:

            David Winnes – Crooked Creek Township - Build calf shed (20‟x 48‟)

            Vernon Fruechte – Winnebago Township - Build pole shed (24‟ x 30‟)

            Tim Orr – Yucatan Township - Expansion of grain bin (5,500 b.u.)

            Chad Oness – Houston Township - Build pole shed (30‟ x 54‟) garage (24‟
            x 27‟)

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            Thomas Vix – Houston Township - Build deck (10‟ x 36‟)

            Dave Thompson – Crooked Creek Township - Build ag building (40‟ x
            64‟) with bathroom < 80 sq. ft.

            David Jennings – Mayville Township - Build granary (20‟ x 24‟)

            Richard Amundson – Wilmington Township - Build grain bin (12,000 b.u.)

        At this time the Board introduced Finance Director Casey Bradley. Commissioner
Connery indicated that Finance Directors from both Olmstead and Winona counties are willing
to assist and mentor Mr. Bradley as he begins his career here.

       File No. 8 -- Following brief discussion, motion was made by Commissioner Graf,
seconded by Commissioner Connery and unanimously carried to adopt the following resolution:

                                RESOLUTION NO. 08-58

       BE IT RESOLVED that the Houston County Board of Commissioners does hereby
approve the Minnesota Lawful Gambling Premises Permit Renewal Application on behalf of
Lancer Youth Hockey Association for gambling activities to be conducted at Pine Creek Golf
Course in La Crescent Township.

       File No. 9 -- Following brief discussion, motion was made by Commissioner Bjerke,
seconded by Commissioner Graf and unanimously carried to adopt the following resolution:

                                RESOLUTION NO. 08-59

       BE IT RESOLVED that the Houston County Board of Commissioners does hereby
approve the Minnesota Lawful Gambling Application for Exempt Permit on behalf of Quality
Deer Management Association Southeast MN for gambling activities to be conducted at Ma Cal
Grove Country Club in Caledonia Township.

       File No. 10 -- Commissioner Connery reported on a recent AMC sponsored media event
at the Minnesota Capital he attended with Chairperson Thompson. He also reported on a
Transportation Committee meeting on which he serves as alternate. Commissioner Connery
reminded the Board of the upcoming Tour of Pool 8 that is scheduled for Sunday September 28,
2008 at 1:30 p.m. to depart from Wildcat Park Landing.

      Commissioner Bjerke reported on the recent Houston County Association of Townships
Annual Meeting which he attended.



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.




       Commissioner Graf reported on a Joint MCIT and AGRIP meeting he attended in
California.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Corcoran and
unanimously carried to place on file the following items from the consent agenda:

               File No. 11 -- Correspondence to payroll regarding employment
       status change for Michelle Massman and the re-appointment of Tom Dybing
       as County Assessor

              File No. 12 -- Correspondence from SE MN Initiative Foundation
       regarding their annual luncheon

              File No. 13 -- Correspondence from Xcel Energy regarding the
       proposed transmission line route

       There being no further business and the time being 11:10 a.m., motion was made by
Commissioner Bjerke, seconded by Commissioner Graf and unanimously carried to adjourn the
meeting, the next advertised meeting being Tuesday, October 7, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




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    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, October 7, 2008                     9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray, &
                   Moorhead; County Engineer Evans; Zoning Administrator Scanlan;
                   Personnel Director Comstock; Court Administrator Larson; Public Health
                   Director Rock; Finance Director Bradley; Environmental Services Director
                   Frank; Dick Kleist; Richard Markos; Kermit McRae; Maintenance Foreman
                   Molling; Engineering Supervisor Pogodzinski

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the September 23, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $175,658.68
              Road & Bridge Fund                                 718,742.57
                                                               ---------------
              Total                                            $894,401.25
                                                               =========

         At this time Richard Markos and Kermit McRae, representing the Houston County
Township Officer‟s Association, met with the board and presented Commissioner Graf with a
Certificate of Appreciation for his years of support of Houston County townships. Commissioner
Graf expressed his deep appreciation to have received this certificate because his Commissioner
district does not have any townships. Richard Markos reported that Chairperson Thompson was
presented with a Certificate of Appreciation for her years of support of Houston County
townships during the recent meeting of the Houston County Association of Township Officers.

        File No. 2 -- Engineer Evans requested approval of a final estimate on behalf of Bonanza
Grain, Inc. in the amount of $6,812.74 for C.P. 2008-01. Motion was made by Commissioner
Corcoran, seconded by Commissioner Connery and unanimously carried to adopt the following
resolution:
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                                  RESOLUTION NO. 08-60

       WHEREAS, Contract No. 178 has in all things been completed, and the County Board
being fully advised in the premises,

        NOW, THEN BE IT RESOLVED, That we do hereby accept said completed project for
and in behalf of the Houston County DOT and authorize final payment as specified herein.

        File No. 3 -- Engineer Evans also requested approval of a final estimate on behalf of
Fahrner Asphalt Sealers, LLC in the amount of $20,355.89 for C.P. 2008-02. Motion was made
by Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
adopt the following resolution:

                                  RESOLUTION NO. 08-61

       WHEREAS, Contract No. 182 has in all things been completed, and the County Board
being fully advised in the premises,

        NOW, THEN BE IT RESOLVED, That we do hereby accept said completed project for
and in behalf of the Houston County DOT and authorize final payment as specified herein.

        Engineer Evans recommended Engineering Supervisor Pogodzinski be granted
authorization to approve bills and oversea projects. Following discussion, motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to name
Engineering Supervisor Pogodzinski Interim County Engineer and to authorize the negotiating
committee to enter negotiations regarding the additional work and responsibilities associated
with this appointment.

        Engineer Evans reported that he, Maintenance Foreman Molling and Engineering
Supervisor Pogodzinski recently met with representatives from MN DOT regarding the
availability of flood funds. Houston County has applied for approximately fourteen million
dollars with a portion requested for county projects, a portion for township projects and one
project for the city of Brownsville. Engineer Evans reported that applications had been reviewed
and all but a few thousand dollars should be approved. These flood funds will be generated by
the State through the sale of bonds which have not yet been offered or sold, but should be offered
for sale soon.

        Engineer Evans recommended that, once the bond funds become available and
applications are granted funding, the County should begin work on the following bridge projects:
County 22 on the north end nearing Highway 16, the bridge on Cork Hollow Road in
Brownsville Township, the posted bridge in Perkins Valley in Money Creek Township and the
two Mound Prairie Township bridges located on Day Valley and Bush Valley Roads. Because
the County five year project plan will be ongoing during the period when these flood fund
projects are under construction, Engineer Evans recommended hiring consultants for design. He

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also suggested requesting assistance from neighboring counties technicians to assist with
inspection and reporting.

       Engineer Evans reported that he recently met with MN DOT representatives to discuss
the needs of Houston County and whether the MN DOT state aid disaster funding account would
be available to help with projects and cash flow issues resulting from the retention of the state‟s
portion of FEMA funds, which is 25% and amounts to approximately $1 million for the County
and also the slow disbursement of Federal Highway Administration oversight funds which has
been depleted to near nothing. We have projects in need of completion that are waiting for
funding. $3.7 million have been requested from the MN DOT State Aid Disaster Funding
Account. If awarded, any funds that were not used would need to be paid back. Also, if any other
forms of reimbursement become available from FEMA or the Federal Highway Administration
Oversight Funds, those too would need to be repaid. Any repayment is without interest.

         Lengthy discussion was held regarding County 13, approximately two miles of which
was extensively damaged during the Flood Event of 2007. A complete re-alignment of the road
would be ideal, but currently the $1.3 million cost negates this as an option. Maintenance
Foreman Molling indicated that a re-grading of the approximate two mile stretch would be the
next best option. MN DOT will not fund the full length re-grade without realignment. MN DOT
will, however, approve funding for patches and guardrail installation. Maintenance Foreman
Molling indicated that this would be a temporary fix and after a few years maintenance costs will
escalate rapidly. The realignment project would need to be moved up on the county priority list if
this is the decision. The County would also have the option to look into alternate routes if the
realignment proved to be cost prohibitive. Engineer Evans stressed that a plan needs to be in
place so that the County can show need and have requests ready when funds become available.

        Discussion was held with regard to the County 5 project. Maintenance Foreman Molling
indicated that a five foot boulevard is not adequate for snow storage. Currently, in La Crescent,
there is a five foot boulevard and the County must haul away snow following each significant
snowfall adding to winter maintenance expenses. The County has adequate right of way for the
proposed ten foot boulevard with regard to the County 5 project to allow adequate snow storage
space thus eliminating the need and cost associated to haul away snow. The proposed plans
reflect a paved shoulder, ten foot boulevard and optional sidewalk. The city will decide if the
sidewalk is included in the final plan.

        Engineer Evans was queried regarding the status of the township sign project by Kermit
McRae. Engineer Evans reported that advertising was approved, however, advertisements have
not yet been run. Following advertising, the project will be awarded at which time the successful
contractor will need approximately sixty days to order and take possession of the signs for
installation. It is estimated that it will take thirty-five working days to install the signs. The fall
and winter weather will affect the final completion, however, the awarded contract will have a
completion deadline expected to be on or around July 1, 2009.



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       File No. 4 -- Zoning Administrator Scanlan reported on the following application for a
variance which was approved by the Board of Adjustment:

           Judy Mauss and Christopher Schafer – Hokah Township - Variance of 40 feet to meet
           the required 50 foot setback from the south property line to build a garage.

       File No. 5 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Connery seconded by Commissioner Corcoran and unanimously carried to
approve the issuance of the following Conditional Use Permits:

           Ruth Boyum – Mound Prairie Township - Re-zone from Ag to Residential.

           Doug Heintz – Sheldon Township - Construct a manure holding basin.

       Zoning Administrator Scanlan also reported on a Conditional Use Permit that is currently
on hold pending further investigation.

        File No. 6 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
the issuance of the following zoning permits:

           Glenn Affeldt – Mound Prairie Township - Build pole shed (40‟ x 60‟)

           Lyman Hein – Houston Township - Change in use from ag building to dwelling

           Chris Schaffer – Hokah Township - Replace garage destroyed by flood (26‟ x 30‟)

           Bob Scanlan – Brownsville Township - Build pole shed (24‟ x 72‟)

           Mark Ellefson – Money Creek Township - Build attached garage (34‟ x 34‟)

           Larry Ledebuhr – Mound Prairie Township - Build dwelling (28‟ x 20‟ x 40‟ x 28‟ x
           29‟ x 20‟) garage (30‟ x 28‟) grain bin (10,000 b.u.)

           Mike McManimon – Yucatan Township - Build cattle shed (36‟ x 55‟)

           Devoine Kruse – Wilmington Township - Build lean-to (18‟ x 80‟)

           Dan Reinhart – Mayville Township - Build attached garage (24‟ x 46‟)

           Donna Buckbee – Yucatan Township - Build pole shed (18‟ x 22‟)

           Charles Misch – Houston Township - Build house (24‟ x 36‟) shop (24‟ x 36‟)


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           Matt Morey – Caledonia Township - Build addition on existing garage (28‟ x 23‟)

           Jim Scanlan – Mayville Township - Build 2 storage units (12‟ x 80‟)

       Zoning Administrator Scanlan reported that state statutes require that the Land Use Plan
be reviewed every ten years. The review has been completed and the Zoning Commission
recommends the plan remain as is without change. Motion was made by Commissioner
Corcoran, seconded by Commissioner Graf and unanimously carried to leave the land use plan
unchanged.

       File No. 7 -- Environmental Services Director Frank met with the Board and requested
approval to upgrade the solid waste computer system. Environmental Services Director Frank
reported that this is a budgeted item and that the contract had been reviewed by Attorney Bublitz
and she has no problem with it. The estimated cost associated with the upgrade is expected to be
between $5,800.00 and $5,900.00. Motion was made by Commissioner Corcoran, seconded by
Commissioner Graf and unanimously carried to authorize Mr. Frank to enter into a contract with
StarTech Computing, Inc. to upgrade the solid waste computer system.

        File No. 8 -- Environmental Services Director Frank presented drop-site reports for
January through June of 2006, 2007, and 2008. He noted that 2007 and 2008 data will not be
useful for comparisons, due to the influx of materials collected related to the flood events.

        File No. 9 -- Personnel Director Comstock met with the board and requested approval of
a Joint Powers Agreement as a follow up to the recent approval to join the Southeast Minnesota
Service Coop as part of the insurance coverage changes. Motion was made by Commissioner
Bjerke, seconded by Commissioner Graf and unanimously carried to adopt the following
resolution and to authorize Chairperson Thompson‟s signature on said agreement:

                                  RESOLUTION NO. 08-63

                   Southeast Service Cooperative Membership Resolution
                           Cities, Counties, and Other Agencies

       WHEREAS, the Southeast Service Cooperative is a cooperative of agencies whose
purpose is to conduct joint activities that will result in cost savings and enhanced services, and

       WHEREAS, the 1991 Legislature encouraged the Minnesota Service Cooperatives to
extend access to cities, counties, and other agencies, and

       WHEREAS, Southeast Service Cooperative has established a category of membership for
these entities, through which cities, counties, and other government agencies may participate in
Southeast Service Cooperative activities and governance,



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.




       THEREFORE, Houston County having 162 employees hereby requests membership in
the Southeast Service Cooperative under the following terms:

The above named organization agrees to pay the annual membership fee which is set annual by
the SSC Board of Directors, prorated for the first membership year (membership years begin
July 1 and end June 30). (An annual memo outlining membership and service fees is included
with this resolution).

        File No. 10 -- Personnel Director Comstock reported that Mary Jane Mullen had tendered
her resignation, as she will be retiring. Motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to accept said resignation and to draft a letter of
appreciation for her years of service.

        PHN Director Rock reported that Mary Jane Mullen has contributed greatly to the
success of the WIC program in the County. At this time, PHN Director Rock does not wish to fill
the vacancy. She reported that the State is making changes to the WIC program and she would
prefer to wait and see what the staffing needs may be following any State program changes.

        File No. 11 -- Personnel Director Comstock reported that, following the recent visit from
OSHA, it was recommended that an Asbestos survey be completed and from that survey a
comprehensive plan identifying asbestos materials be created to bring the County into
compliance with State regulations. Personnel Director Comstock reported on several proposals
he had received from area companies to perform the survey. He recommended that the board
accept the proposal of Midwest Engineering Management Company in the amount of $5,490.00.
Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and unanimously
carried to accept the proposal provided by Midwest Engineering Management Company in the
amount of $5,490.00.

       File No. 12 -- Public Health Director Rock presented multiple customized living
contracts that provide for the Counties Elderly Waiver clients and recommended their approval.
She reported that there was a 3% rate increase over the previous year. Motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to approve the
following contracts and to authorize the signature of Chairperson Thompson:

                      Spring Grove Assisted Living
                      Roseview Court Memory Care – Caledonia Care & Rehab
                      Roseview Court and Buckley – Caledonia Care & Rehab
                      Meadows of Mabel
                      Heritage Grove
                      Claddagh House
                      Alterra Sterling House of Winona

        At this time Finance Director Bradley requested authorization to renegotiate the lease for
office space for Extension. He indicated that notice to terminate the contract must be given in

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.




excess of 60 days prior to contract expiration or it would automatically renew for a period of one
year. He indicated that the County may be better served to renegotiate a month by month lease
starting February 1, 2009. Motion made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to authorize Finance Director Bradley to enter into contract
renegotiations.

        File No. 13 -- Auditor Meiners requested approval of a Joint Powers Agreement which is
required in order to receive recount reimbursement from the State. Motion was made by
Commissioner Connery, seconded by Commissioner Corcoran unanimously carried to approve
said agreement and to authorize the signatures of Chairperson Thompson and Auditor Meiners.

        File No. 14 -- Received and filed from Viking Ridge Riders Snowmobile Club was a trail
assistance request. Motion was made by Commissioner Bjerke, seconded by Commissioner Graf
and unanimously carried to adopt following resolution:

                                  RESOLUTION NO. 08-62

       BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the Viking Ridge Riders Snowmobile Club and
authorizes the Board Chairman and the County Auditor to sign an agreement with the
Department of Natural Resources.

       Discussion was held regarding a request by Finance Director Bradley to be added to the
county credit card account established for the Board, and several departments. Motion was made
by Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
approve said request.

       Commissioner Connery expressed concern regarding the preparation necessary for the
departmental moves once the Meyer Furniture Building purchase is complete. He suggested that
a committee be formed to usher this move forward. Finance Director Bradley has indicated his
willingness to head the committee. After discussion, it was the consensus of the Board to appoint
a committee consisting of: Attorney Bublitz, IS Lapham, PHN Director Rock and also
representatives from both Veteran‟s Services and Extension.

       In addition, Commissioner Connery expressed his desire to see the same type of
committee formed with regard to the proposed Highway Department Building project.
Engineering Supervisor Pogodzinski has indicated his willingness to head this committee. After
discussion, it was the consensus of the Board to appoint a committee consisting of the following:
Attorney Bublitz, Surveyor Walter, Finance Director Bradley, Auditor Meiners and a
representative from IS.

        File No. 15 -- Discussion was held with regard to which Commissioners would be
attending Board of Appeal & Equalization training. State law requires that at least one member


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attend this training. It was agreed that both Commissioners Connery and Corcoran would attend
the training offered October 27, 2008 following the AMC district meeting.

        It was agreed to schedule budget meetings beginning at 1:00 p.m. on November 12, 2008,
and if necessary, also on November 18, 2008.

       Discussion was held with regard to the scheduling of Department Head Evaluations. It
was agreed that job descriptions and the revised evaluation forms would be sent out in
commissioner packets prior to the meetings which will be scheduled by Auditor Meiners in half
hour intervals on Tuesday, October 14, 2008 and Tuesday, October 21, 2008 beginning at 11:00
a.m. with a lunch period reserved from noon until 1:00 p.m.

        Commissioner Connery reported on the Tour of Pool 8 which showed the recovery of 54
acres of land by the reconstruction of islands. Commissioner Connery also reported on the exit
interview with Engineer Evans where the current status of highway department projects was
discussed. At the exit interview, Commissioner Connery received a synopsis of project status. He
indicated that, if other Board members were interested, they could request a copy from the
Highway Department.

       Commissioner Bjerke reported on a Radio Board User Group meeting that he and
Commissioner Connery attended recently where a grant funded survey was discussed. The
survey is to be completed by year end and following that, the group will make recommendations
with regard to which radio communications are best suited for the area.

       Commissioner Graf reported on an Extension meeting he attended where he was
presented with information regarding the cost to provide extension services in 2009.
Commissioner Graf also shared information regarding an Extension leadership program titled
“You Lead” with a meeting to be held in the future in Rushford.

       Commissioner Corcoran reported on the recent Planning Commission meeting which he
attended and affirmed the reports by Zoning Administrator Scanlan earlier today.

        Discussion was held regarding the upcoming Tri County Electric open house to be held at
their new facility on October 27, 2008 from 3:30 p.m. to 7:00 p.m.

      Motion was made by Commissioner Graf, seconded by Commissioner Connery and
unanimously carried to place on file the following items from the consent agenda:

                    File No. 16 -- Correspondence to payroll regarding the hire of
           Jesse Breault and Matthew Muenkel

                     File No. 17 -- Correspondence to Marcus Evans thanking him
           for years of service.


REGULAR SESSION                                                                      Page   232
.




                   File No. 18 -- Correspondence from Canadian Pacific
          regarding their acquisition of DM & E and IC & E Railroads

                    File No. 19 -- 2009 Historic Bluff Country Business
          Membership application with information regarding Wildcat Park
          advertising

                   File No. 20-- Information regarding the 2009 costs for
          providing extension services

       There being no further business and the time being 11:20 a.m., motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to adjourn the
meeting, the next advertised meeting being Tuesday, October 14, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                              Page    233
.




     PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, October 14, 2008                    9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray, &
                   Moorhead; Dick Kleist; Jack Miller; Sheriff Ely; Personnel Director
                   Comstock; Interim Engineer Pogodzinski; Finance Director Bradley; HS
                   Accountant Bahr; PHN Director Rock

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the October 7, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $203,155.88
              Road & Bridge Fund                                 213,999.27
                                                               ---------------
              Total                                            $417,155.15
                                                               =========

        File No. 2 -- Personnel Director Comstock met with the Board and requested
authorization to hire Karen Seidel as a drop site supervisor. Motion was made by Commissioner
Bjerke, seconded by Commissioner Graf and unanimously carried to authorize the hire of Seidel
to be used on an as needed basis.

        Personnel Director Comstock reported that Lee Denstad has tendered his notice of
retirement. Motion was made by Commissioner Connery, seconded by Commissioner Graf and
unanimously carried to accept said notice and to draft a letter of appreciation for his years of
service.

       Personnel Director Comstock recommended that the Board approve the status change of
Custodian David Erickson and Custodian Don Moore from part time to full time. This would
compensate for the retirement of Lee Denstad without additional staff. Motion was made by


REGULAR SESSION                                                                    Page     234
.




Commission Connery, seconded by Commission Graf, and unanimously carried to approve said
status changes effective November 1, 2008.

        File No. 3 -- Personnel Director Comstock reported that terms and conditions have been
agreed upon with regard to the appointment of Brian Pogodzinski as Interim Engineer. Motion
was made by Commissioner Connery, seconded by Commissioner Corcoran and unanimously
carried to approve the agreement to compensate Mr. Pogodzinski at step 5 of the non-union,
appointed and elected officials compensation plan while serving as Interim Engineer effective
retroactive to October 7, 2008.

      Personnel Director Comstock reported that interviews for the vacant position of County
Engineer will be scheduled for the week of October 20-24, 2008.

        File No. 4 -- Personnel Director Comstock reported that MCIT has been coordinating
federally required DOT alcohol and drug testing and negotiated a master agreement with
FirstLab however, they will no longer be providing this service. As a result, Houston County
needs to enter into a service agreement with FirstLab for services. Motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to approve an
agreement with FirstLab to provide lab services for federally required DOT alcohol and drug
testing and to authorize the signature of Chairperson Thompson.

        Personnel Director Comstock, on behalf of PHN Director Rock, requested Board
approval to increase Diane Sullivan‟s FTE from 0.5 to 0.7. Diane Sullivan works with the WIC
program and PHN Director Rock reported that, by increasing Diane Sullivan‟s time following
the retirement of Mary Jane Mullen, adequate staffing will be maintained until she is able to
assess the departments staffing needs. Motion was made by Commissioner Bjerke, seconded by
Commissioner Graf and unanimously carried to approve the increase of Diane Sullivan‟s FTE
from 0.5 to 0.7 effective immediately.

        Sheriff Ely reported that jail population has not been decreasing. Currently, the County
has more criminals housed outside in Fillmore and Mower counties than it has within Houston
County. Housing criminals outside the county costs the county $60.00 per day per inmate.
Currently, Houston County is housing 15 inmates outside of the County. Last month the County
paid out in excess of $22,000.00 to transport, house and provide medical care to inmates. In an
effort to contain costs, the County implemented a program which has provided for a Jail nurse to
visit three days per week. Public Health provides for this and it has had a huge impact on
healthcare costs associated with the jail population. It should be noted that, even if an inmate has
health insurance, there is no coverage once that individual is incarcerated, leaving the county to
pay all healthcare costs of inmates.

        Sheriff Ely reported that last Thursday he attended a seminar sponsored by the State BCA
on sexual predators and sex offenders. He explained the four classifications of sex offenders and
reported that, of the 28 sex offenders in Houston County, 27 have been categorized at the lowest
risk classification and the remaining offender has been categorized at one level of risk higher

REGULAR SESSION                                                                        Page     235
.




than lowest. Sheriff Ely also reported that, unlike Wisconsin and Iowa, Minnesota does not post
sex offender information for public review. Minnesota does require that sex offenders register
with the County where they reside, and that changes to their status be reported to local officials.
Unfortunately, follow up reporting has little oversight.

         Sheriff Ely reported that the County‟s Drug enforcement officer and canine recently
competed in a nationwide competition where they finished eleventh in individual competition
and together with three other Minnesota officer and canine pairs, took top honors in the team
competition. Sheriff Ely reported that Drug Enforcement Officer Erickson and Virgil have been
very busy within the county on a daily basis and have made good finds resulting in pending
litigation. Sheriff Ely indicated that the Drug enforcement officer and canine have been so
productive and beneficial, that he would have two drug officers on staff if the County could
afford it.

         There was discussion held regarding the proposed contract for services provided by SE
Consultants Inc. and Joyce Iverson. It was agreed that Commissioner‟s Connery and Bjerke
would complete the evaluation, and decision regarding the proposed contract would be tabled
until after the budget meetings scheduled for November.

       File No. 5 -- At this time Carla Blahnik and Nancy Thomas, representing the State
Auditor‟s Office, met with the Board to discuss the State Auditor‟s report.

        The overall financial health of the county was discussed. The significant increase in both
expenses and revenues in the areas of transportation and public safety were identified and
attributed to the recent flood events.

       Discussion was held with regard to possible improvements that can be made in several
areas with regard to internal controls in the function areas of investments, receipts, deposits,
disbursements and payroll. These types of recommendations are common among small counties
with minimal staffing like Houston County.

        The State Auditor‟s office recommended the County review its investments policy with
relation to the recently updated GASB policies and State statutes regarding county investments
to insure the policy is in compliance.

       Additional recommendations from the State Auditor‟s office were that the County should
perform a capital assets inventory periodically and have a formal disaster recovery plan in place.
The County is actively working to prepare the disaster recovery plan.

       Commissioner Graf reported on an MCIT fall retreat and meeting which he attended
where there was discussion regarding current financial turmoil and preparations for the annual
meeting scheduled for December.



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.




       Commissioner Connery reported on a joint FEMA meeting held in conjunction with
Fillmore County on October 10, 2008. An additional meeting scheduled for Friday, October 17,
2008. Commissioner Connery also reported on a Highway Department meeting he attended with
the newly formed committee and also the architect where initial site layout sketches were
discussed.

        Chairperson Thompson reported on a recent SE MN Water Resources Board meeting.
This is a joint Board with involvement from ten counties. She reported the Director Bea Hoffman
resigned. It was agreed that it is an important enough entity to warrant continuation. It is one of
few Water Resources Boards that remains active in the state. They agreed to advertise for a
halftime director position. This position is funded in part by grants and in part by appropriations.
The eighteen year old Board has secured in excess of $4 million in funding to benefit feedlot
design and improvement, water planning maps, stream and waterway quality testing and other
beneficial programs.

        Dick Kleist, Commissioner Candidate for district 3, expressed concern with regard to the
current economic conditions and the impact it is or may have on area seniors.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to place on file the following items from the consent agenda:

               File No. 6 -- Correspondence to Xcel regarding tons delivered during September
               2008

              File No. 7 -- Public notice regarding cancellation of November 4, 2008 Board
       meeting and the rescheduling of the November 11, 2008 Board meeting to be held
       November 12, 2008

               File No. 8 -- Correspondence to Mary Jane Mullen thanking her for years of
       service.

       There being no further business and the time being 11:00 a.m., motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
adjourn the meeting, the next advertised meeting being Tuesday, October 21, 2008.

                                              BOARD OF COUNTY COMMISSIONERS
                                              HOUSTON COUNTY, MINNESOTA

                                              By: ________________________________
                                                     Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor


REGULAR SESSION                                                                        Page     237
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, October 21, 2008                   9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray, Benson &
                   Moorhead; Assessor Dybing; Kermit McRae; Finance Director Bradley; Dick
                   Kleist; Interim Engineer Pogodzinski; Personnel Director Comstock

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the October 14, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $ 62,570.65
              Road & Bridge Fund                                483,309.34
                                                              ---------------
              Total                                           $545,879.99
                                                              =========

        File No. 2 -- At this time Assessor Dybing met with the Board to discuss a resolution
which AMC is recommending counties adopt with regard to the Aggregate Resource
Preservation Property Tax Law. Assessor Dybing reported that he does not have a
recommendation at this time and would prefer to research the law and return to the Board at a
later date to make a recommendation. It was agreed by the Board that the item would be tabled
until Assessor Dybing returns with a recommendation.

        File No. 3 -- Finance Director Bradley presented a proposal from Ace Communications
Group to install fiber to the Meyer Building for network connectivity. Lengthy discussion was
held. Finance Director Bradley recommended the Board approve the option including upfront
costs and a locked in monthly fee for a period of five years. Motion was made by Commissioner
Corcoran, seconded by Commissioner Connery and unanimously carried to approve 100 Mbps
bandwidth with an upfront cost of $33,000.00 and a monthly service charge of $1,440.00 per
month for five years.


REGULAR SESSION                                                                  Page    238
.




        Finance Director Bradley reported that insurance for the Meyer Building is being
provided by the Eitzen Bank. They, along with the previous owner, have agreed to allow the
policy to remain in the previous owner‟s name with the County being named as additional
insured for a fee of $52.00, in addition to the monthly insurance fee of $136.66 per month until
the renter vacates the property, at which time the Counties insurance carrier, MCIT, will provide
the necessary coverage. Finance Director Bradley reported that this agreement provided the
necessary coverage at a fee well under other provider quotes which were between $1,200.00 and
$1,600.00 for a period from closing date to March 1, 2009 that did not provide for month to
month renewal.

        A clarification was requested of the Board to report which departments would be moving
to the Meyer Building. The Board reported that Extension, Veteran‟s Services, and Public Health
Nursing would all be moving.

        Finance Director Bradley requested authorization to establish a Capital Fund and Debt
Service Fund in connection with the upcoming Highway Department and Jail projects. Motion
was made by Commissioner Connery, seconded by Commissioner Corcoran and unanimously
carried to approve said request for the establishment of these additional funds.

        Personnel Director Comstock reported that, due to unforeseen scheduling opportunities,
interviews for the vacant position of County Engineer were held last week. Interviews were
originally planned to take place today. Personnel Director Comstock inquired how the Board
wanted to proceed with filling the vacancy. Commissioner Corcoran reported that he felt
candidate Brian Pogodzinski was very well qualified and would bring with him a well-rounded
portfolio of experience. Commissioner Connery expressed his agreement. Commissioner Bjerke
stated that the County is fortunate to have someone so well qualified. Motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to offer
the position of County Engineer to Brian Pogodzinski, probationary period to expire April 2009,
and to authorize the negotiating team to negotiate the terms of employment.

       File No. 4 -- Auditor Meiners reported on an Application for an Abatement of Tax on
behalf of Donald and Sandra Petersen for Parcel No. 02.0060.003, since the incorrect class rate
was inadvertently used on this parcel. If approved, the payable 2008 taxes will be reduced from
$266.00 to $186.00, being a reduction of $80.00. Assessor Dybing and Auditor Meiners are both
recommending approval. Motion was made by Commissioner Corcoran, seconded by
Commissioner Bjerke and unanimously carried to approve the same.

        File No. 5 -- Discussion was held with regard to attendance at a seminar entitled
Controlling Jail Costs and Crowding Through Innovation, which is being hosted jointly by the
National Institute of Corrections and AMC. It was agreed that Auditor Meiners will take care of
registration and room reservations for this conference.
        File No. 6 -- Discussion was held with regard to attendance at the Annual AMC
Conference scheduled for December. It was agreed that Commissioner‟s Graf, Bjerke and


REGULAR SESSION                                                                     Page     239
.




Connery would be attending. It was reported that other County staff attending would be Finance
Director Bradley, Environmental Services Director Frank and Personnel Director Comstock.

      File No. 7 -- Discussion was held with regard to the MCIT voting delegate and alternate.
The Board agreed that Commissioner Bjerke would serve as the delegate from Houston County
and Commissioner Connery would serve as alternate.

       Commissioner Graf reported that he and Finance Director Bradley were present at the
closing for the purchase of the Meyer Building. He reported that the closing went well and that
he has heard positive comments from the public regarding the County‟s decision to purchase the
building. Commissioner Graf also reported on a political debate he attended in La Crescent
where several local candidates were on hand.

       Commissioners Corcoran reported that he, Commissioner Connery and Finance Director
Bradley recently met with Ace Communications Group with regard to IS issues.

       Commissioner Connery reported on FEMA IS300 training which he attended.
Commissioner Connery expressed his concern that the County obtain clarification with regard to
who is required to attend the trainings and that records be established at the county level to track
county employee completion of FEMA trainings so that potential funding is not put in jeopardy
for non-compliance.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

               File No. 8 -- Correspondence to Payroll regarding hire of Karen Seidel, increase
       of FTE‟s of Don Moore, David Erickson and Diane Sullivan, and appointment agreement
       of Interim County Engineer

               File No. 9 -- SELCO Annual Report

               File No. 10 -- MCIT - 2008 Annual Meeting info

               File No. 11 -- Correspondence to Lee Denstad thanking him for years of service

       There being no further business and the time being 9:47 a.m., motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to adjourn the
meeting, the next advertised meeting being Tuesday, October 28, 2008.




REGULAR SESSION                                                                        Page     240
.




                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                             Page   241
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, October 28, 2008                  9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray, &
                   Moorhead; Engineer Pogodzinski; Finance Director Bradley; Sheriff Ely;
                   Chief Deputy Yeiter; Dick Kleist; Surveyor Walter; Public Health Director
                   Rock; Zoning Administrator Scanlan; Joe McCarthy

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to approve the minutes of the October 21, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to approve payment of the following claims:

              County Revenue Fund                             $ 53,579.25
              Road & Bridge Fund                               184,398.76
                                                             ---------------
              Total                                          $237,978.01
                                                             =========

       File No. 2 -- Engineer Pogodzinski met with the board to discuss the proposed Highway
Department Building. He reported that the County would like City input prior to closing on
property being purchased for the proposed building to ensure that they will issue Houston
County the necessary permits. The purchase agreement for said property is set to expire on
December 1, 2008. Engineer Pogodzinski and Finance Director Bradley met with the City on
October 27, 2008 and were advised that a site plan must be submitted along with a zoning
application by Friday October 31, 2008 in order to be included on the agenda for the next
scheduled meeting on November 24, 2008. Lengthy discussion followed with regard to the
proposed site plan. Board consensus was to have Engineer Pogodzinski and Finance Director
Bradley proceed with submitting the required paperwork to the city.




REGULAR SESSION                                                                 Page    242
.




        File No. 3 -- Engineer Pogodzinski requested the Board accept the bid provided by
American Engineering Testing, of Minneapolis, Minnesota, for soil borings in the amount of
$4,200.00. The soil borings are for the property where the proposed Highway Building would be
built. Motion was made by Commissioner Connery, seconded by Commissioner Corcoran and
unanimously carried to accept said bid for soil borings.

     File No. 4 -- Engineer Pogodzinski reported on the following bid which was received on
Monday, October 27th, for C.P. 2008-08:

              Soil Nail Launcher, Inc.
              Fruita, CO                                   $569,375.00

        The bid came in close to the engineer‟s estimate of $545,910.00. Engineer Pogodzinski
reported that several companies had inquired, however, due to the limitation that the work would
need to be performed from the top because of a creek running below, only one contractor
submitted a bid. Engineer Pogodzinski recommended the board accept the bid provided by Soil
Nail Launcher, Inc. Motion was made by Commissioner Bjerke, seconded by Commissioner
Graf and unanimously carried to accept the bid of $569,375.00 provided by Soil Nail Launcher,
Inc. for soil nailing on CSAH 5 south of Camp Winnebago.

       Engineer Pogodzinski requested Board authorization for him to sign sub-grant
agreements with FEMA. He reported that this was the same Board granted authorization
provided to the previous County Engineer. Motion was made by Commissioner Corcoran,
seconded by Commissioner Connery and unanimously carried to authorize Engineer
Pogodzinski‟s signature on sub-grant agreements with FEMA.

        Engineer Pogodzinski reported that the Township Sign Replacement Program was
currently being advertised, with the bid opening scheduled for November 24, 2008.

         Engineer Pogodzinski reported that the County has received salt for the upcoming winter
season. The County received only half the amount it had the previous winter season. They plan
to utilize brines more to meet our needs.

       File No. 5 -- Personnel Director Comstock met with the Board and recommended Board
approval of a change from 0.9 FTE to fulltime status for Assistant Surveyor Tammy Mauss.
Surveyor Walter was on hand to report that Assistant Surveyor Mauss has been working the
equivalent of fulltime and he anticipates the workload to continue to support the change. Motion
was made by Commissioner Corcoran, seconded by Commissioner Connery and unanimously
carried to approve the permanent change in status from 0.9 FTE to fulltime for Assistant
Surveyor Mauss effective the start of the current pay period.

       File No. 6 -- Personnel Director Comstock reported that terms and conditions have been
agreed upon with regard to the appointment of Brian Pogodzinski as County Engineer. Motion
was made by Commissioner Corcoran, seconded by Commissioner Connery and unanimously

REGULAR SESSION                                                                    Page     243
.




carried to approve the agreement to compensate Mr. Pogodzinski at a salary equivalent to
$74,000.00 per year with other terms equivalent to prior engineers effective October 21, 2008
and expiring April 30, 2009.

        Personnel Director Comstock recommended that the Board approve the status change of
Jailer/Dispatchers Jennifer Blocker and Kevin Walther from 0.75 FTE to fulltime, provided
agreement can be reached with the Union where the County retains the flexibility to schedule as
needed. This change would provide for extending fulltime benefits, while retaining flexibility in
scheduling. Motion was made by Commissioner Connery, seconded by Commissioner Graf and
unanimously carried to approve the status change of both Jennifer Blocker and Kevin Walther
pending union agreement.

       Personnel Director Comstock reminded the Board that they are welcome to attend the
department head meeting scheduled for 1:00 p.m. today in the back half of the Commissioner‟s
Room.

       At this time Zoning Administrator Scanlan met with the board. He reported that the
variance application submitted with regard to the Kimball Quarry operation was set to expire,
however, a sixty day extension had been granted. Additional research and discussion was
scheduled and decision regarding the application had been tabled again.

        File No. 7 -- On the recommendation of the Planning commission, motion was made by
Commissioner Corcoran seconded by Commissioner Graf and unanimously carried to approve
the issuance of the following Conditional Use Permits:

           Greg and Laurie Bauer – Sheldon Township - Build a house on less than 40 acres in
           an ag district

           Lena Kreibich – Hokah Township - Build a house on less than 40 acres in an ag
           district – after-the-fact

        File No. 8 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Bjerke, seconded by Commissioner Connery and unanimously carried to approve
the issuance of the following zoning permits:

           Eric Nelson Sr. and Eric Nelson Jr. – Caledonia Township - Replace trailer house –
           2nd farm dwelling (16‟x 80‟)

           Steven Doucet – Union Township - Build house and garage (70‟x 50‟) deck (4‟x 96‟)

           John Loken – Yucatan Township - Build pole shed (40‟x 64‟)

           Robert E. Solum – Spring Grove Township - Build pole shed (60‟x 104‟)


REGULAR SESSION                                                                     Page     244
.




          Carl Helke – Hokah Township - Build lean-to on existing shed (14‟x 56‟)

          Christian and Trisha Myrah – Spring Grove Township - Build house (40‟x 60‟)

          Mark and Jennifer Nutt – Caledonia Township - Build house with wrap around porch
          (50‟x 80‟) garage (26‟x 24‟)

          Raymond Pollack – Winnebago Township - Build house (44‟x 44‟) garage (32‟x 48‟)

          Dean and Linda King – Sheldon Township - Build house (50‟x 36‟) garage (44‟x 28‟
          6 ½‟)

          Hammell Dairy Inc. Tony Hammell – Mayville Township - Build addition on shed
          (45‟ x 72‟)

          Allen and Jean Betz – Sheldon Township - Build garage (32‟ x 64‟)

          Lane and Mary Zaffke – Spring Grove Township - Build 2 story addition on house
          (20‟ x 24‟)

          Doug Heintz – Sheldon Township - Build free stall barn (68‟ x 225‟) milking center
          (36‟ x 15‟) milk house utility room (36‟ x 24‟6”) bathroom < 80 square feet with (6‟ x
          16‟) porch, Pit (218,780 gal) (42‟ x 42‟ x 8‟) with ramp (80‟ x 42‟), bunker silo (28‟ x
          120‟) Lean –to (14‟ x 72‟), lean-to (14‟ x 72‟)

          Tony and Ann Bauer – Mayville Township - Build pole shed (18‟x 20‟)

        File No. 9 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Corcoran, seconded by Commissioner Bjerke and unanimously carried to approve
the renewal of the following Conditional Use Permits:

          Van Lin Orchards owners Rick & Daniel Van Lin – Hokah Township - Temporary ag
          employee housing

          Robert Sandvick of Old Hickory Orchards – Mound Prairie Township - Temporary ag
          employee housing

          Zenke Partnership – Hokah Township - Substantial land alteration in a shoreland
          district

       At this time Emergency Manager Kuhlers met with the Board and reported that currently
a sub-grant agreement was being reviewed by County Attorney Bublitz that will provide for the
reimbursement of 90% of June 2007 flood related protective measures and code red activation.
This would total approximately $9,000.00.

REGULAR SESSION                                                                      Page     245
.




        File No. 10 -- Emergency Manager Kuhlers recommended the Board approve the Letter
of Agreement with Olmstead County acting as Fiscal Agent for Region 1 Emergency Managers.
This Letter of Agreement would allow the emergency manager to sign for and receive equipment
purchased through regional grants. Following lengthy discussion, motion was made by
Commissioner Corcoran, seconded by Commissioner Bjerke and unanimously carried to accept
the Letter of Agreement and authorize the signature of Chairperson Thompson.

       Emergency Manager Kuhlers reported that the proposed Hazard Mitigation plan was on
schedule to be completed by January 1, 2009. He explained that following completion the plan
would go to the State for approval, then onto FEMA and back to the County and Cities for final
adoption.

        File No. 11 -- Auditor Meiners reported that recently there have been issues with the
credit limits being reached on various County credit cards. Following discussion with Finance
Director Bradley a listing of suggested credit limits was prepared and it is their recommendation
that the Board approve a credit limit increase request be submitted to the credit card provider.
Motion was made by Commissioner Connery, seconded by Commissioner Graf and unanimously
carried to approve the requested credit limit increases be submitted to the credit card provider for
review.

       Auditor Meiners requested that two Commissioners be appointed to serve on the County
Canvassing Board which is scheduled to meet at 10:00 a.m. on Thursday, November 9, 2008. It
was agreed that the meeting would be rescheduled to 1:00 p.m. and that Commissioners Connery
and Corcoran would participate.

       File No. 12 -- Following brief discussion, motion was made by Commissioner Connery,
seconded by Commissioner Graf and unanimously carried to appoint the five County
Commissioners along with Personnel Director Comstock and Finance Director Bradley as AMC
voting delegates.

       File No. 13 -- Following brief discussion, it was Board consensus to decline a meeting
with CapX to discuss proposed transmission line routes.

        Commissioner Bjerke reported on a District 9 AMC meeting he recently attended with
Commissioner Connery where discussion was held with regard to how the County works with
the State, other Counties, and School Boards. Also discussed was the need for counties to work
hard to gain efficiencies in light of the anticipated budget shortfalls at the state level. The
counties also need to be able to provide qualitative measures that reflect the cost to Counties that
are a direct result of tax shifts by the State.

        Commissioner Connery reported on Board of Appeal and Equalization training which he
recently attended. There was discussion about the desire for transparency and understanding of
the process by taxpayers and options available to them.

REGULAR SESSION                                                                        Page     246
.




      Commissioner Connery reported that he and Surveyor Walter met with Sheldon
Township officials regarding the Sheldon Town plat and Mr. Walter‟s survey.

      Commissioner Connery reported on two highway meetings he attended, one with the
Highway Department Building committee and the other to tour the Crawford county facility.

       Commissioner Connery recently met with a group of Russian delegates who are highly
involved in ecology.

       Commissioner Corcoran reported on the recent Zoning meeting where the Kimball quarry
was discussed and tabled again.

      Commissioner Graf reported on the Hazard Mitigation meeting held in La Crescent on
Tuesday October 21, 2008. He reported that the meeting was poorly attended.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 14 -- Correspondence to Commissioner candidates
          regarding attendance at conference

                   File No. 15 -- Transportation Alliance Legislative Update dated
          October 24, 2008

       There being no further business and the time being 10:36 a.m., motion was made by
Commissioner Bjerke, seconded by Commissioner Graf and unanimously carried to adjourn the
meeting, the next advertised meeting being Wednesday, November 12, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                                      Page   247
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Wednesday, November 12, 2008                         9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Gray, &
                   Moorhead; Robert Augedahl; Sheriff Ely; Emergency Manager Kuhlers;
                   Victim Services Herman; Veteran Services Gross

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the October 28, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

              County Revenue Fund                             $170,421.57
              Road & Bridge Fund                                253,791.93
                                                              ---------------
              Total                                           $424,213.50
                                                              =========

       At this time the Board made introductions and welcomed Commissioner Elect Augedahl.

       Sheriff Ely reported that the third vehicle purchased under the 2008 rotation schedule had
been delivered. The vehicle was a budgeted item.

        File No. 2 -- Finance Director Bradley met with the board to report on several proposed
policy changes. He reported that the Credit Card Policy was completely new, was in compliance
with state statute and was presented at the October department head meeting and no concerns
were raised. The Capital Asset Policy has changes to items 6.02 and 6.03. 6.02 changes who is
responsible for maintaining and updating the policy and 6.03 defines who is accountable to the
policy. The Valuing & Capitalizing Assets Policy has changes to items 7.03 and 7.04. 7.03 out
lines procedures to identify Federally Funded assets within the system. 7.04 addresses tracking
and accountability of fixed assets. The Depreciating Capital Assets Policy has one change to the
schedule. The Land Improvement-Exhaustible category has Well added to it with an estimated


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.




useful life of 50 years. Motion was made by Commissioner Connery, seconded by Commissioner
Graf and unanimously carried to adopt said policy changes.

       File No. 3 -- Finance Director Bradley requested approval of an Extension Building
Lease Agreement effective February 2, 2009. The lease provides for month to month renewal
and there will be an increase of $61.00 per month to the rent amount. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
said Extension Building Lease Agreement and to authorize the signature of Chairperson
Thompson.

        File No. 4 -- Personnel Director Comstock presented a Memorandum of Agreement with
regard to the change in full time equivalency status of two Jailer/Dispatcher positions approved
by motion at the October 28, 2008 Board of Commissioner‟s meeting.

        On the recommendation of Human Services Director Wilms, Personnel Director
Comstock requested the Board approve the status change of Human Services Supervisor
Poepping from probationary to permanent effective her anniversary date. Motion was made by
Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried to approve
said status change for Human Services Supervisor Poepping.

       Auditor Meiners reported briefly on the upcoming state senate recount. Auditor Meiners
requested authorization to hire trained election judges to assist with the recount. Motion was
made by Commissioner Graf, seconded by Commissioner Corcoran and unanimously carried to
approve the hire of up to five election judges on a temporary as needed basis at the summer
temporary help wage rate.

        File No. 5 -- Emergency Manager Kuhlers requested approval of a sub-grant agreement
that would provide for the reimbursement of $8,322.35 of protective services and code red
notification expenses incurred when these services were dispatched during the June 2008 flood
event. Emergency Manager Kuhlers reported that the total funds spent were $9,247.06 and the
County is eligible for 90/10 reimbursement. With approval of the sub-grant agreement, the
County would be responsible for $924.71. Motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to approve said sub-grant
agreement and to authorize the signature of Chairperson Thompson.

       Following brief discussion, motion was made by Commissioner Corcoran, seconded by
Commissioner Bjerke and unanimously carried to appoint both Commissioner Elect Augedahl
and Miller to the CJC committee.

       File No. 6 -- Following discussion, motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to approve the Canvassing Board
Proceedings.



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.




       File No. 7 -- Auditor Meiners requested approval of a Joint Powers Agreement which is
required in order to receive recount reimbursement from the State. Motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
approve said agreement and to authorize the signatures of Chairperson Thompson and Auditor
Meiners.

        File No. 8 – Victim Services Director Herman met with the Board and reported on the
services she provides and that her position is funded through a grant. She requested approval of a
grant in the amount of $43,172.00 from the Department of Public Safety that provides for the
continued funding of the mandated services which she provides. Motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
the grant and to adopt the following resolution:

                                  RESOLUTION NO. 08-64

       BE IT RESOLVED, that Houston County Mediation & Victim Services (HCMVS) will
enter into a cooperative agreement with the Office of Justice Programs in the Minnesota
Department of Public Safety. Michelle Herman is hereby authorized to execute such agreements
and amendments, as are necessary to implement the project on behalf of Houston County
Mediation & Victim Services.

       File No. 9 -- Maintenance Foreman Molling reported on the following quote which was
received on Monday, October 24th, for CSAH 18:

               Zenke, Inc.                                    $84,328.00
               La Crescent, MN

       Maintenance Foreman Molling recommended the Board accept the quote submitted by
Zenke Inc. to re-align and extend the pipe on CSAH 18 and Freemont Street on the south edge of
Hokah. Both the City of Hokah and Houston County sustained damages. The project was
mitigated with FEMA and it was agreed that the County would perform the necessary repairs.
This project will be 100% reimbursed by FEMA. Motion was made by Commissioner Corcoran
and seconded by Commissioner Graf and unanimously carried to accept said quote.

       Veteran Services Officer Gross met with the Board and requested authorization to accept
a donation from the Ella Jean Trust in the amount of $436.17 to be utilized for the Veteran‟s
Services Program. Motion was made by Commissioner Graf, seconded by Commissioner Bjerke
and unanimously carried to accept said donation and to send letter in appreciation of the
donation.

        Commissioner Connery reported on a SEMCAC meeting which he recently attended
where Commissioner Dahl from Fillmore County was presented an award, and where there was
discussion with regard to the pending Federal audit of the Head Start program which was
originally scheduled for 2007 and was postponed due to the 2007 flood event.

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.




        Chairperson Thompson reported on a recent Water Resources Board meeting she
attended in Rochester where nine applications were reviewed for the replacement to retiring
director, Bea Hoffman. Interviews for five of the applicants will be held during the week of
November 17 through 21.

      Commissioner Graf reported that he and Commissioner Connery attended the October
County Department Head meeting.

        It was agreed that Auditor Meiners will prepare congratulatory letters to State
Representative Elects Pellowski and Davids, and also Commissioner Elects Augedahl and
Miller. In addition, a letter of thanks would be prepared for outgoing State Representative
Tschumper.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 10 -- Correspondence to payroll regarding the
          appointment of Brian Pogodzinski as County Engineer, the increase in
          Tammy Mauss‟ FTE from 0.9 to full-time, and in the increase in
          Jennifer Blocker and Kevin Walther‟s FTE from 0.75 to full-time
          pending Union agreement where County retains scheduling flexibility

                   File No. 11 -- Correspondence to Canvassing Board Members
          with regard to Canvassing Board convening on Thursday, November 6,
          2008 at 1:00 p.m.

                  File No. 12 -- Correspondence to Soil Nail Launcher, Inc.
          awarding bid for C.P. 2008-08

                   File No. 13 -- Correspondence to Ace Link with regard to
          Agreement for Fiber Optic and/or Copper Bandwidth Houston County in
          connection with the Meyer Building

                    File No. 14 -- Correspondence to Emily Wing – Merchant‟s
          Bank with regard to request for increased credit card limit (Note – Credit
          increase is approved)

                 File No. 15 -- An STS Quarterly Report received from MN
          DOC/Rena Patterson

                  File No. 16 -- Income Contract Budget Information for FY10
          & FY11 received from Rena Patterson, MN DOC


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.




                 File No. 17 -- Transportation Alliance Legislative Update dated
          November 3, 2008

                 File No. 18 -- Transportation Alliance Legislative update dated
          November 5, 2008

       There being no further business and the time being 10:07 a.m., motion was made by
Commissioner Connery, seconded by Commissioner Graf and unanimously carried to adjourn
the meeting, the next advertised meeting being Tuesday, November 18, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




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.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, November 18, 2008                   9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Benson, &
                   Moorhead; Commissioner Elects Miller & Augedahl; Engineer Pogodzinski;
                   Personnel Director Comstock; IS Manager Pierce; Sheriff Ely; Ralph Tuck;
                   Earl Welch; Finance Director Bradley; Joe McCarthy

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the November 4, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve payment of the following claims:

              County Revenue Fund                              $ 94,034.90
              Road & Bridge Fund                                 683,871.02
                                                               ---------------
              Total                                            $777,905.92
                                                               =========

        File No. 2 -- Engineer Pogodzinski met with the board and reported on excess funds in
the amount of $59,158.00 held in the municipal fund account and recommended the Board adopt
a resolution to move the funds to the regular state aid construction fund account. Funds held in
the municipal fund account are looked at when the state determines future allotments directed to
the fund, and a significant balance could jeopardize future funding. Motion was made by
Commissioner Graf, seconded by Commissioner Corcoran and unanimously carried to adopt the
following resolution:

                                  RESOLUTION NO. 08-65

       WHEREAS, Minnesota Statute 162.08, Subd 4 (3d), provides that accumulated balances
in excess of two years of municipal account apportionments may be spent on projects located
outside of municipalities under 5000 population when approved solely by resolution of the
county board.
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.




        NOW, THEREFORE, BE IT RESOLVED, that the Commissioner of Transportation
transfer $59,159.00 (all funds) in excess of two years apportionment into the Regular
Construction Account.

         File No. 3 -- At this time Ralph Tuck met with the Board to discuss Hazard Mitigation
grant funding for flood control measures/structures in the Upper Mississippi-Reno Watershed.
Mr. Tuck reported that a study has shown that controlling 46% of the watershed will reduce
potential flood risks. It is anticipated that implementing 8 to 10 structures will achieve this level
of treatment. The structures could include control measures, road retention structures, etc. Mr.
Tuck plans to submit a grant application in the amount approximately one million dollars. If
awarded, the grant would be a cost share with 75% grant funds matched by 25% local funds. He
reported that he is also in the process of identifying additional funding sources to cover the local
fund portion. Mr. Tuck reported that the county‟s hazard mitigation plan would need to be
finalized and a cost to benefit analysis for each proposed site would have to be performed prior
to being awarded any grant funds. The grant would be applied for through the Soil and Water
District and he requested a letter of support from the Board. Motion was made by Commissioner
Corcoran, seconded by Commissioner Connery and unanimously carried to prepare and approve
a letter of support to pursue the hazard mitigation grant for the Upper Mississippi-Reno
Watershed.

        File No. 4 -- Personnel Director Comstock requested authorization to hire Vern
Goetzinger as a Veterans Service driver. This position is on an as needed basis. Motion by
Commissioner Bjerke, seconded by Commissioner Graf and unanimously carried to approve the
hire of Vern Goetzinger.

       Personnel Director Comstock reported that Assistant Attorney Jamie Hammell had
requested a 60 day unpaid leave of absence, and on the recommendation of the department head
he requested that the Board grant this request. Motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to grant said leave of absence.

        Personnel Director Comstock requested that the Board approve the status change of Case
Aid Cindy Thorson from probationary to permanent status effective on her anniversary date.
Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and unanimously
carried to approve said status change for Case Aid Cindy Thorson.

        File No. 5 -- Personnel Director Comstock reported on a recent visit by OSHA and an
informal settlement offer. Mr. Comstock recapped the visit and reported on the buildings which
OSHA toured, their findings and suggestions, and penalties assessed which totaled $5,000.00. He
further reported that the $5,000.00 in penalties was after discount for good faith, employer size
and past violation history. At a settlement hearing OSHA offered a 45% decrease in the penalty
provided the County enter into an agreement which provides for an additional 75% reduction in
penalties if the County reduces its worker‟s compensation claims by 25% in the next year. If the
County is unable to reduce the claims by 25%, but does reduce the claims, the remaining

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.




penalties due would be reduced accordingly. Motion was made by Commissioner Bjerke,
seconded by Commissioner Graf and unanimously carried to approve said settlement agreement
and to authorize the signature of Chairperson Thompson.

        Personnel Director Comstock reported that candidates who had previously applied for the
position of Engineering Supervisor have been reviewed and it was the Highway Department‟s
wish to re-advertise for the current vacancy. Motion was made by Commissioner Corcoran,
seconded by Commissioner Graf and unanimously carried to approve advertising for said
position.

        File No. 6 -- IS Manager Pierce and Sheriff Ely met with the Board to discuss the
possibility of joining ICAC (Internet Crimes Against Children). IS Manager Pierce reported that
there are currently 40 members in Minnesota. This is a nationwide organization and there is no
fee to participate. ICAC is funded by a $500,000 grant. Members of the organization may apply
for reimbursement to cover training, lodging, sting operations, software, over-time, a dedicated
line for unique IP address and other expenses to assist in the apprehension of internet crime
perpetrators. Attorney Bublitz is in the process of reviewing the membership application and
noted that reimbursement is not automatic and appropriate record keeping and documentation
measures would need to be taken in order to apply for reimbursement. She indicated that the
training opportunities offered should be well worthwhile. Motion was made by Commissioner
Connery, seconded by Commissioner Corcoran and unanimously carried to approve the
submission of a membership application pending the final approval of Attorney Bublitz.

       File No. 7 -- Finance Director Bradley presented conceptual drawings for the Meyer
Property. Lengthy discussion was held. Finance Director Bradley reported that a request has
been made by Delta Design to enter into a contract prior to them providing finalized plans.
Finance Director Bradley also reported that the County anticipates utilizing the Sentence to
Service Program for much of the demolition and erecting of stud walls. Motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
approve the initial conceptual drawings provided by Delta Design.

       File No. 8 -- Following brief discussion, motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to approve Auditor Meiners petty
cash fund request for the Auditor‟s Office/License Center in the amount of $100.00.

       File No. 9 -- Following discussion, motion was made by Commissioner Corcoran,
seconded by Commissioner Connery and unanimously carried to approve and sign the letter to
Southeast Consultants, Inc. requesting that the proposed EDA contract be rewritten to provide
for month-to-month services as opposed to yearly.

       File No. 10 -- Commissioner Connery reported on a seminar that he along with
Commissioner Bjerke, Commissioner Elects Augedahl and Miller and Jail Administrator Schiltz
attended. The seminar was sponsored by NIC and focused on determining who is serving time,
why are they serving time, and whether there is there anyway to cut down on the number of

REGULAR SESSION                                                                    Page     255
.




required beds. NIC was encouraging the creation of Criminal Justice Center Committees (CJCC).
Houston County already has a CJCC in place to work with local Police Departments, judges, and
citizens. NIC is considering offering a three day refresher since the process of planning a jail has
been dragged out for so many years. Also, they are willing to provide technical assistance to
Houston County, if we so request. Motion was made by Commissioner Connery, seconded by
Commissioner Bjerke and unanimously carried to adopt the following resolution:

                                   RESOLUTION NO. 08-66

       BE IT RESOLVED, that the Houston County Board of Commissioners hereby requests
technical assistance from the National Institute of Corrections in planning for a new jail in
Houston County, Minnesota.

       File No. 11 -- Jail Administrator Schiltz presented statistical data with regard to
outsourcing prisoners.

       Commissioner Graf reported on a recent two-day MCIT meeting which he attended
where there was discussion with regard to claims, personnel, and insurance renewal issues. He
reported that casualty reinsurance has increased by $200,000.00 mainly due to law enforcement,
while property and vehicle rates have remained stable. He also reported that the 2009 budget had
very little change except for an increase in reserve balances for claims and worker‟s
compensation. They also discussed the 2009 work plan.

       Chairperson Thompson reported on a recent early childhood initiative meeting she
attended where it was discussed that 100 of the largest companies in MN have been meeting to
discuss their workforce in the future, and how early childhood education (birth to 5) impacts the
future workforce. Chairperson Thompson anticipates programs/grants to result from this in order
to work on that project.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to place on file the following items from the consent agenda:

                    File No. 12 -- Correspondence to payroll regarding Social
           Services Supervisor Poepping status change from probationary to
           regular and the hire of five election judges to assist with the state senate
           recount

                    File No. 13 -- Letter of appreciation to Laurie Baker on behalf
           of the donation to Veteran Services received from Ella Jean‟s trust

                     File No. 14 -- Transportation Alliance Legislative Update

                    File No. 15 -- Correspondence from Historic Bluff Country
           regarding Membership Meeting

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.




                   File No. 16 -- Houston County Historical Society Income
          Report showing matching funds

                 File No. 17 -- Correspondence from MCIT with regard to 2008
          MCIT Dividend Payment

                    File No. 18 -- Correspondence from Washington County with
          regard to the December 8, 2008 High Speed Rail Meeting to be held at
          the AMC Annual Conference

                    File No. 19 -- Letters of congratulations to the following newly
          elected officials: Robert Augedahl, Jack Miller, Greg Davids, & Gene
          Pellowski

                  File No. 20 -- Letter of appreciation to outgoing State
          Representative Ken Tschumper

       There being no further business and the time being 10:38 a.m., motion was made by
Commissioner Bjerke, seconded by Commissioner Graf and unanimously carried to adjourn the
meeting, the next advertised meeting being Tuesday, November 25, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                                        Page   257
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, November 25, 2008                      9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:     Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Benson &
                    Moorhead; Kermit McRae; Maintenance Foreman Molling; Engineer
                    Pogodzinski; Personnel Director Comstock; Ralph Tuck; EDA Staff Iverson;
                    Finance Director Bradley; Brittney Heim, journalism student; Dick Kleist

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to approve the minutes of the November 18, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Corcoran and unanimously carried to approve payment of the following claims:

               County Revenue Fund                                $ 69,200.78
               Road & Bridge Fund                                   618,394.92
                                                                  ---------------
               Total                                              $687,595.70
                                                                  =========

       File No. 2 -- Motion was made by Commissioner Connery, seconded by Commissioner
Bjerke and unanimously carried to approve the issuance of the settlement checks.

        File No. 3 -- Engineer Pogodzinski reported on the MN DOT Aeronautics airport permit
which expires November 29, 2008. The renewal will not include a permit for instrument and
GPS approach use because the airport is not in compliance with instrument approach setback
requirements. This permit change is expected to have little, if any impact on the current airport
activity. It may prevent some courier planes, such as FedEx, from landing when the La Crosse
airport is not available due to fog. The County receives no financial benefit when these planes
land, yet the aircraft does cause wear and tear to the runway. The County would have the option
to renew this portion of the permit at a later date, if they pursued either of the following options.
The first option would be to move the hangers and trees that do not comply with the setback
requirements. The trees are not property of the County and would therefore require the
permission/cooperation of the landowner. The second option would be to move forward with
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.




runway improvements that would require the acquisition of 130 acres of land and easements on
an additional 60 acres.

       File No. 4 -- Following discussion, motion was made by Commissioner Connery,
seconded by Commissioner Bjerke and unanimously carried to offer the use of the airport as the
primary launch site for the Balloon Rally at organizer discretion, and to take the necessary steps
to prepare for the closing and re-opening of the facility.

        Engineer Pogodzinski reported that the school district had met and discussed the request
to share the easement for access to Highway 76 with the County. The District indicated that it
would be in favor of sharing the easement providing access, and would ask that the County grade
the balance of the easement in exchange. The grading would be a step towards completing the
roadway which would benefit both parties in the future. Engineer Pogodzinski stated that,
because the equipment to meet this demand would be on site, the cost to the County would be
minimal.

        Engineer Pogodzinski also reported on a City Council meeting where discussion was held
with regard to the variance requests made by the County for the proposed Highway Department
Building. The City approved the majority of items including the radio tower height and location,
the proposed salt storage setback from the school property, the proposed building height of 50
feet that would allow for a pitched roof, smaller parking spaces than required by city codes, to
waive excavation bonds, and not requiring sidewalk installation at the present time. The City will
pay to install stop lights. The items that were not approved included a provision to hold the
County harmless for damages caused to Warrior and Gjere Avenues, and the city would not
agree to take ownership of storm water facilities. There were no neighboring home owners or
Caledonia Township residents, present at the City Council meeting to express concern.
Developers were present to question whether any financial burden resulting from additional
development in the area would be imposed.

      Engineer Pogodzinski reported that the closing on the property for the proposed Highway
Department Building is set for December 1, 2008 at 9:00 a.m.

       Engineer Pogodzinski reported that MN DOT has been hesitant to comment on additional
access to Highway 76 including turning lane installation until the County had City approval.
However, Mr. Pogodzinski expressed that it was his opinion there will not be a problem with
obtaining approval from MN DOT for access to the property.

       File No. 5 -- Engineer Pogodzinski reported on the following bids received until 1:00
p.m. on November 24, 2008 for S.A.P. 28-070-02:

               Highway Technologies                         $415,236.00
               Minneapolis, MN

               JAAK LLC                                     $423,211.00

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.




               Le Sueur, MN

               Quality Restoration Services, Inc.           $434,935.75
               Little Canada, MN

               Aldridge Bros. Construction LLC.             $442,413.50
               Ironton, MN

               H & R Const. Co.                             $444,997.10
               Dalton, MN

               Safety Signs LLC                             $459,413.60
               Lakeville, MN

        Engineer Pogodzinski expressed his belief that the reason the low bid came in nearly 20%
below the engineer‟s estimate of $514,451.70 was because the contract allows for the contractor
to keep the signs that are replaced, and due to current economic conditions. He also reported that
he expects the preparation of signs will take two to three months, and installation could begin as
early as March 2009. On the recommendation of Engineer Pogodzinski, motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
accept the low bid of Highway Technologies in the amount of $415,236.00.

       Kermit McRae expressed his appreciation to the Board and to Engineer Pogodzinski for
the hard work and time it took to bring this project to the final bid letting. The Board expressed
thanks to Mr. McRae, who has been steadfast in ushering this project forward.

       File No. 6 -- EDA Staff Iverson met with the Board to discuss an EDA request to have a
Business Subsidy Agreement between LaX Fabricating and the City of Spring Grove backdated
from June 2008 to November 2007. A timeline was presented which outlined several events that
impacted the effective date of JOBZ benefits for the LaX Fabricating business. Following
lengthy discussion, motion was made by Commissioner Connery, seconded by Commissioner
Bjerke and unanimously carried to approve sending a revised letter pending Attorney Bublitz‟s
approval which formally requests backdating the Business Subsidy Agreement providing for
LaX Fabricating JOBZ benefits.

       File No. 7 -- Ralph Tuck reported that several landowners have approached him and
requested that the Root River Soil and Water Conservation District act as the local sponsor,
along with the Houston County Board, to submit a Project Proposal Application to the USDA in
hopes of securing grant funding for use in conservation measures for flood and erosion control in
the Bee/Duck Creek Watershed. Commissioner Bjerke reported that he had attended a meeting
with the landowners, and approximately twenty people representing various state agencies to
view the area and discuss the project proposal. Mr. Tuck requested the Board‟s support and
reported that there would be no financial obligation on the part of the County. Motion was made


REGULAR SESSION                                                                      Page     260
.




by Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried to
authorize the signature of Chairperson Thompson on the Project Proposal Application.

       Personnel Director Comstock requested authorization to hire Mike Ryan as a Dropsite
Supervisor. This position is on an as needed basis. Motion was made by Commissioner Graf,
seconded by Commissioner Corcoran and unanimously carried to approve the hiring of Mike
Ryan.

       Personnel Director Comstock provided a reminder with regard to the Department Head
Meeting to be held in the back half of the Commissioner‟s Room today at 1:00 p.m. The Board
requested the attendance of department heads when issues pertaining to their department are
brought before the Board by Personnel Director Comstock.

        File No. 8 -- Following discussion, motion was made by Commissioner Connery,
seconded by Commissioner Bjerke and unanimously carried to approve the letter, as written, in
support of the grant application submitted by the RRWCD with regard to the Upper
Mississippi/Reno Watershed, and to authorize the signature of Chairperson Thompson on said
letter.

      Following discussion, motion was made by Commissioner Corcoran, seconded by
Commissioner Graf and unanimously carried to reappoint Maynard Welsher and Wilfred
Pohlman to the Crooked Creek Watershed District Board for 3 year terms commencing
December 1, 2008 and expiring November 30, 2011.

       File No. 9 -- Finance Director Bradley recommended the approval of a Design and
Construction Management Service Agreement which is for general contractor services provided
by Delta Design L.L.C. These services are for renovation of the Meyer Building. Finance
Director Bradley reported that services include final floor plans and bid solicitation, with the
County retaining the ability, through committee approval, to choose to whom bids are awarded.
Commissioner Connery reported that during committee, cost saving measures have been
discussed at length. The Sentence to Service Program will be utilized as a cost saving measure.
Motion was made by Commissioner Connery, seconded by Commissioner Corcoran and
unanimously carried to approve said agreement with Delta Design L.L.C.

       Finance Director Bradley requested Board approval to publish County financial
statements as prepared. Motion was made by Commissioner Corcoran, seconded by
Commissioner Graf and unanimously carried to approve the publication of County financial
statements as required by law.

        File No. 9a -- Environmental Services Director Frank met with the Board to discuss the
petition by Solum‟s to have their case heard by the Minnesota Supreme Court in hopes of having
the appellate courts decision overturned and be ruled in their favor. Mr. Frank reported that our
legal counsel was preparing letters to AMC, and the House and Senate majority and minority
leaders with regard to the unprecedented participation of several legislators in the petition.

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.




Following lengthy discussion, it was the consensus of the Board to prepare a letter to be directed
to our local legislators to open dialogue with them with regard to their colleagues‟ actions. These
letters would include input from Environmental Services Director Frank and be reviewed by
Attorney Bublitz prior to being sent.

        Environmental Services Director Frank also reported that the ten year solid waste plan
was going on public notice, and it is expected the plan will be completed by the end of December
2008. This plan includes history, the current status and future projections of the program and is
available for review in the Environmental Services Office. This is a mandated process and the
current system is not changing.

        Commissioner Corcoran reported on a zoning meeting he attended the week of November
17, 2008 where a feedlot expansion near Spring Grove was approved along with the preliminary
Boyum plat in the town of Mound Prairie and where a decision regarding the Kimball quarry was
tabled again.

       Commissioner Bjerke reported on a meeting he attended where the Bee Creek watershed
was toured.

       Chairperson Thompson reported on several SE MN Water Resources Board meetings
which she has attended. The meetings have been to review applicants for the vacant position
previously held by Bea Hoffman, to hold interviews and make a recommendation. The Board has
extended an offer, and Chairperson Thompson will provide further information upon acceptance.
She reported that two highly qualified individuals were interviewed.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                     File No. 10 -- Correspondence to payroll with regard to the
           hiring of Vern Goetzinger as VSO driver, the approved unpaid leave of
           absence of Jamie Hammell, and the status change of Case Aide Cindy
           Thorson from probationary to permanent effective her anniversary date

                    File No. 11 -- Correspondence to Xcel with regard to tons
           delivered in October 2008

                     File No. 12 -- Correspondence from the MN Revenue with
           regard to 2009 County Board of Appeal and Equalization

                   File No. 13 -- Correspondence with regard to the 2009 Annual
           Washington Fly-in

                    File No. 14 -- Notice of Time Change/Location Change for
           Dec. 8th High Speed Rail Meeting at AMC Annual Conference

REGULAR SESSION                                                                       Page     262
.




       There being no further business and the time being 11:11 a.m., motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to adjourn the
meeting, the next advertised meeting being Tuesday, December 2, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                              Page    263
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, December 2, 2008                    9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Benson, &
                   Moorhead; Commissioners Elect Augedahl & Miller; Zoning Administrator
                   Scanlan; Jail Administrator Schiltz; Finance Director Bradley; Personnel
                   Director Comstock; EDA Staff Iverson; Assessor Dybing; Attorney Bublitz

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to approve the minutes of the November 25, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

              County Revenue Fund                                $27,022.32
              Road & Bridge Fund                                  17,346.04
                                                               ---------------
              Total                                              $44,368.36
                                                               =========

        Zoning Administrator Scanlan reported that the variance application submitted with
regard to the Kimball Quarry operation had been tabled to allow time for additional research and
discussion.

       File No. 2 -- On the recommendation of the Planning commission, motion was made by
Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried to
approve the preliminary plat of Ruth Boyum, Mound Prairie Township.

        File No. 3 -- On the recommendation of the Planning commission, motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
the issuance of the following Conditional Use Permit:

           Peter Rosendahl – Spring Grove Township - Expand an animal feedlot up to 395
           animal units
REGULAR SESSION                                                                    Page     264
.




       File No. 4 -- On the recommendation of the Planning Commission, motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to approve the
issuance of the following zoning permits:

          Robert Beckman – Mound Prairie Township - Build pole shed (36‟ x 48‟)

          Mike and Michelle Werner – Sheldon Township - Build house (46‟ x 36‟) deck (15‟ x
          28‟) garage (28‟ x 36‟)

          Mike McCormick – Mayville Township - Build cattle barn (50‟ x 148‟)

          John Eddy – Mound Prairie Township – Build pole shed (30‟ x 40‟)

          Ralph Konkel – Winnebago Township - Build addition on garage (16‟ x 30‟)

          Dean Plantz – Sheldon Township - Replace modular home (27‟4” x 68) deck (12‟ x
          40‟)

          Wayne Olson – Sheldon Township - Substantial land alteration, excavation in a flood
          plain (flood related)

       Commissioner Bjerke reported on a form he received from Dodge County Zoning, which
provides information with regard to their zoning ordinance and required the signature of the
applicant stating they had been provided with, read and understood the zoning process and
requirements. Currently, Houston County provides the same type of information. However,
Houston County does not require a signature affirming an applicants understanding of the
process and requirements.

       File No. 5 -- Following brief discussion, motion was made by Commissioner Graf,
seconded by Commissioner Bjerke and unanimously carried to approve a letter to State
Legislators with regard to legislator support for Supreme Court review of an Appellate court
decision involving Houston County Zoning Ordinance.

       File No. 6 -- Personnel Director Comstock requested authorization to hire Darlene Walsh
as a Transport Matron and Roger Bernsdorf as a Transport Officer. Both positions are on an as
needed basis. Motion was made by Commissioner Bjerke seconded by Commissioner Connery
and unanimously carried to approve the hire of both Walsh and Bernsdorf.

        Auditor Meiners reported briefly regarding ongoing state senate recount issues. Auditor
Meiners requested authorization to hire two election judges to assist with a request regarding
rejected absentee ballots. Motion was made by Commissioner Connery, seconded by
Commissioner Graf and unanimously carried to approve the hire of two election judges on a
temporary as needed basis at the summer temporary help wage rate.

REGULAR SESSION                                                                   Page     265
.




        File No. 7 -- Finance Director Bradley met with the Board and reported on an Addendum
to the Contract for Professional Services with Southeastern Minnesota Development
Corporation. The original contract provided for a billing rate of $40.00 per hour for standard
services. The Addendum would provide for an adjusted billing rate of $65.00 per hour for work
related to the administration of the flood loan program, which is a task outside the scope of
standard services. Following discussion, motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to approve the Addendum, authorize the
signature of Chairperson Thompson and to require itemized billing be submitted for each billing
rate.

        File No. 8 -- At this time, discussion was held with EDA Staff Iverson and Attorney
Bublitz with regard to the revision of a letter requesting the Business Subsidy Agreement with
LaX Fabricating be backdated to allow for JOBZ benefits as of November 1, 2007. Auditor
Meiners‟ presented information with regard to 2008 taxes and occupancy requirements. Attorney
Bublitz requested additional time to review the information collected. It was Board consensus to
table this discussion until the December 16, 2008 meeting.

       File No. 9 -- EDA Staff Iverson presented final paperwork in connection with several tax
abatements approved between July 2007 and May 2008 for signature, being: Loken Sawmill Inn,
Winona Controls, K Properties and Walnut Street Properties. Following discussion, motion was
made by Commissioner Connery, seconded by Commissioner Corcoran and unanimously carried
to re-affirm previous motions approving these abatements and authorizing the signature of
Chairperson Thompson and Auditor Meiners on said Tax Abatement paperwork.

        Attorney Bublitz reported on extensive discussion with regard to elections that has been
taking place among members of the County Attorney Association. She indicated this will be a
hot topic at her upcoming conference.

       Commissioner Connery reported on a Hiawatha Valley Mental Health Center meeting he
attended December 1, 2008. Three of the HVMHC board members retiring.

     Chairperson Thompson reported on a recent department head meeting she attended with
Commissioner Bjerke where policies were reviewed.

        There was brief discussion with regard to a Hazard Mitigation meeting scheduled for
tonight in Spring Grove.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                    File No. 10 -- Correspondence awarding the bid for S.A.P. 28-
           070-02 to Highway Technologies


REGULAR SESSION                                                                     Page    266
.




                   File No. 11 -- Correspondence to unsuccessful bidders of
          S.A.P. 28-070-02

                    File No. 12 -- Correspondence to payroll with regard to the
          hiring of Mike Ryan as drop-site supervisor

                  File No. 13 -- Public Notice canceling December 9, 2008
          Board meeting and scheduling one for December 30, 2008

                   File No. 14 -- Correspondence to Maynard Welscher and
          Wilfred Pohlman with regard to appointment to the Crooked Creek
          Watershed District Board

                   File No. 15 -- Correspondence regarding swearing in ceremony
          for newly elected commissioners and SWCD Board Members

       There being no further business and the time being 10:29 a.m., motion was made by
Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried to adjourn
the meeting, the next advertised meeting being Tuesday, December 16, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                                   Page   267
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, December 16, 2008                    9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Benson, &
                   Moorhead; Personnel Director Comstock; EDA Staff Iverson; PHN Director
                   Rock; Commissioners Elect Augedahl & Miller; Veteran Services Director
                   Gross; Finance Director Bradley; Zoning Administrator Scanlan; Human
                   Services Director Wilms; Assessor Dybing; John Benton; County Attorney
                   Bublitz

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Connery and
unanimously carried to approve the minutes of the December 2, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

               County Revenue Fund                              $125,102.90
               Road & Bridge Fund                                 337,037.47
                                                                ---------------
               Total                                            $462,140.37
                                                                =========

       File No. 2 -- Motion was made by Commissioner Connery, seconded by Commissioner
Corcoran and unanimously carried to approve license center disbursements.

       File No. 3 -- Zoning Administrator Scanlan reported on the Minnesota Board of Water
and Soil Resources 2009 Natural Resources Block Grant (BWSR). The grant allocation is the
same as last year, with the exception of the Feedlot portion. The Feedlot portion is increasing by
approximately $5,700.00 due to county performance. Mr. Scanlan recommended approval of the
BWSR Grant Agreement. Motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to approve said agreement and authorize the
signature of Chairperson Thompson.



REGULAR SESSION                                                                      Page     268
.




        File No. 4 -- Veteran Services Director Gross reported on a grant, in the amount of
$15,000.00 that has been awarded by the Minnesota Department of Veterans Affairs, and he
recommended the Board take action to accept the grant. Veteran Services Director Gross
reported that his office has received similar grants in the past, and even though the grant doesn‟t
expire for two years, Mr. Gross indicated that the funds would all be utilized within the first year.
Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and unanimously
carried to accept said grant funds.

        Veteran Services Director Gross reported that currently his office shares the following
office equipment with Zoning: printer, fax, and copier. However, with the anticipated move of
the Veteran Services Office, it is necessary to purchase that equipment along with a monitor and
two computers. Mr. Gross is requesting authorization to purchase the necessary equipment at an
approximate cost of $3,175.00. He further reported that the purchase would be a qualifying
purchase under a $5,000.00 outreach grant, and therefore, would not require the use of County
funds. Motion was made by Commissioner Connery, seconded by Commissioner Corcoran and
unanimously carried to authorize the purchase of said equipment.

        Veteran Services Director Gross received a summary of Houston County Veterans
programs at a recent AMC conference. He reported that, due to Houston County being included
in a unique district, the reporting was inaccurate. This has been reported to the state both last
year and again this year. The healthcare numbers for Houston County only reflect that care
received at the Minneapolis VA Center, and does not include the approximate $2 million dollars
in healthcare received by Houston County veterans in La Crosse and Tomah.

       Veteran Services Director Gross reported on a core program with Lutheran Social
Services which awards funds to veterans suffering hardships. An example of the use of funds
may be to bring mortgage payments current. However, in an effort to ensure that the same
individuals do not fall behind again, there is a contract that provides for financial counseling.
The office providing the counseling located in Mankato, however, they do travel to the County if
those needing services are unable to travel to Mankato.

       File No. 5 -- PHN Director Rock met with the Board to request approval of the PHN
budget. The budget has already been approved by the Joint Board of Health. PHN Director Rock
reported that, unlike other County departments, Public Health is self-sustaining. She also
reported that less than $200,000 is received from the State, and even considering the reduction of
grants by 1.8%, she is confident that provided the current level of staffing and healthcare
numbers is maintained, the Public Health Department will be able to continue their level of
services and assist all those in need. Motion was made by Commissioner Bjerke, seconded by
Commissioner Graf and unanimously carried to adopt the following resolution:




                                   RESOLUTION NO. 08-67

REGULAR SESSION                                                                         Page     269
.




       The Houston Board of Commissioners, by this resolution, do hereby approve the 2009
Local Public Health Budget for Houston County.

       File No. 6 -- Public Health Director Rock presented two chore service contracts and
recommended their approval. Motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to approve the following contracts for chore
services with Dave Thiele and Kris Karlson.

        File No. 7 -- Public Health Director Rock also presented two customized living contracts
and recommended their approval. She reported that the contracts were due to a recent change
within Caledonia Care and Rehab that necessitated a 2% base rate increase, which is still within
the high cap rate. Motion was made by Commissioner Connery, seconded by Commissioner Graf
and unanimously carried to approve the following contracts:

                      Roseview Court and Buckley - Caledonia Care & Rehab
                      Roseview Court Memory Care - Caledonia Care & Rehab

       File No. 8 -- PHN Director Rock recommended the approval of the Ratification statement
between Houston County and ACS State & Local Solutions, Inc. and MCCC that provides for
the development of maintenance and support of PH-Doc for a term commencing on January 1,
2009 and expiring December 31, 2013. Motion was made by Commissioner Corcoran, seconded
by Commissioner Bjerke and unanimously carried to approve said Ratification Statement.

        File No. 9 -- Personnel Director Comstock requested that the Board approve the status
change of Appraiser Trainee Mike Paulson, from probationary to permanent status effective on
his anniversary date. Assessor Dybing expressed that he has been very pleased with the addition
of Mr. Paulson. Assessor Dybing reported that 3 courses and a year of experience are required
prior to becoming a Certified Minnesota Assessor. He further indicated that he anticipates,
because of the experience Mr. Paulson had prior to being hired along with the satisfying of the
course requirements, Mr. Paulson may obtain his CMA as early as January 2009. Motion was
made by Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried
to approve said status change for Appraiser Trainee Mike Paulson.

         Personnel Director Comstock reported that Mary Newgaard, a Financial Worker in the
Human Services Department, has tendered her notice of retirement. Ms. Newgaard has indicated
that her last day will be December 31, 2008. Motion was made by Commissioner Bjerke,
seconded by Commissioner Graf and unanimously carried to accept said notice and to draft a
letter of appreciation for her years of service.

        Human Services Director Wilms recommended leaving the position vacant at this time.
Human Services Director Wilms reported that the position is reflected in her 2009 budget and
feels that her department can absorb the workload. The department is looking into restructuring
in an effort to glean additional internal efficiencies with the anticipated budget shortfalls.

REGULAR SESSION                                                                    Page     270
.




        Following discussion and on the recommendation of the negotiating committee, motion
was made by Commissioner Corcoran, seconded by Commissioner Connery and unanimously
carried to end the current practice of including elected officials in the County‟s compensation
system.

        File No. 10 -- It was reported that the negotiating committee has completed some wage
comparison research. In an effort to retain and attract qualified employees they looked at three
counties of similar population and size and also took into consideration that elected officials have
the option to litigate if salaries and compensation are not appropriate. Based on their findings,
the negotiating committee makes the following wage related recommendations.

      Motion was made by Commissioner Connery, seconded by Commissioner Corcoran and
unanimously carried to approve the following 2009 salaries for elected officials as follows:

                       County Recorder                       $55,100.00
                       County Treasurer                      $55,100.00
                       County Sheriff                        $78,500.00
                       County Commissioner                   $18,687.00

       It was noted that the Commissioner wage is the same as 2008 and does not include an
increase for 2009.

        Personnel Director Comstock reported that the positions of County Attorney and County
Auditor were not included in the elected officials salary specifications because the positions are
currently being filled by appointed personnel who have retained their employee status. However,
the salaries for these positions are subject to Board discretion and the negotiating committee has
made a recommendation. Motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to approve 2009 salaries as recommended for appointed
employees as follows:

                       Interim County Attorney               $89,400.00
                       Interim County Auditor                $60,363.52

        On the recommendation of the negotiating committee, motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to
increase the wage grids for Non-Union and Appointed Official‟s compensation by a 2% COLA
effective January 1, 2009, and a 3% COLA effective July 1, 2009.

        On the recommendation of the negotiating committee, motion was made by
Commissioner Bjerke, seconded by Commissioner Corcoran and unanimously carried to approve
the discretionary placement for the employees listed as follows:

                       Beth Wilms, 100%                      Linda Bahr, 93%

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.




                       Bob Scanlan, 95%                       Andrew Milde, 93%
                       Nickie Folsom, 99%                     Mary Thompson, 95%
                       Heather Myhre, 99%                     Laurie Bigalk, 95%
                       Lisa Scribner, 93%

         It was noted that all other non-union and/or appointed officials who are not listed here are
still advancing through the initial wage step range or are already at 100% of the maximum salary
for their respective positions.

        Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to discontinue the county‟s practice to pay the Chief Deputy Sheriff at a rate
that was 18% above the base salary rate for the position of Captain, and to set the Chief Deputy‟s
salary for 2009 at $74,500.00.

       File No. 11 -- Personnel Director Comstock presented several personnel policy change
recommendations. Following discussion, motion was made by Commissioner Corcoran,
seconded by Commissioner Bjerke and unanimously carried to adopt the recommended
personnel policy changes effective January 1, 2009 unless otherwise indicated.

         File No. 11a -- Personnel Director Comstock recommended the approval of an out-of-
state travel policy. The County policies currently have not addressed out-of-state travel. Motion
was made by Commissioner Corcoran, seconded by Commissioner Graf and unanimously
carried to adopt said new policy.

        File No. 11b -- Personnel Director Comstock recommended that the county adopt a
policy mirroring statute and remove retirees who have reached the age of 65 from the active
employee pool with regard to health insurance. By removing this group from the active pool,
there would be no implied cost and would diminish liability to perform an actuarial study.
Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and unanimously
carried to adopt an Early Retiree and Retiree Eligibility for Health Insurance Policy.

        File No. 12 -- At this time County Attorney Bublitz and EDA Staff Iverson met with the
Board. Attorney Bublitz reported that she has reviewed and revised a letter presented by EDA
Staff Iverson and has prepared an additional letter outlining the County‟s position with regard to
the LaX Fabricating 2008 property taxes. The letters have been prepared to be read in
conjunction with one another, and it is County Attorney Bublitz‟s recommendation to approve
the letters as prepared. Motion was made by Commissioner Corcoran, seconded by
Commissioner Connery and unanimously carried to approve the letters as written, authorize the
signature of Chairperson Thompson.

       File No. 13 -- EDA Staff Iverson distributed copies of a Houston County Hospitality
Postcard which outlined some upcoming EDA events.



REGULAR SESSION                                                                         Page     272
.




        File No. 14 -- Finance Director Bradley met with the Board to report on a proposed
resolution which must be adopted within 60 days of a capital purchase in order to recoup the
purchase costs through subsequent bonding in connection with the Highway Department
Building Project. He recommended that the resolution be adopted. Motion was made by
Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried to adopt
the following resolution:
                                 RESOLUTION NO. 08-68

      DECLARING THE OFFICIAL INTENT OF HOUSTON COUNTY TO REIMBURSE
                CERTAIN EXPENDITURES FROM THE PROCEEDS
                  OF BONDS TO BE ISSUED BY THE COUNTY


        WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the
“Reimbursement Regulations”) providing that proceeds of tax-exempt bonds used to reimburse
prior expenditures will not be deemed spent unless certain requirements are met; and

       WHEREAS, the County expects to incur certain expenditures that may be financed
temporarily from sources other than bonds, and reimbursed from the proceeds of a tax-exempt
bond;

       WHEREAS, the County has determined to make this declaration of official intent
(“Declaration”) to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.

    NOW, THEREFORE, BE IT RESOLVED BY THE COUNTY BOARD OF HOUSTON
COUNTY AS FOLLOWS:

        1.     The County proposes to undertake the construction of a public works facility in
the City of Caledonia, Minnesota in 2009 (the “Project”).

        2.      The County reasonably expects to reimburse the expenditures made for certain
costs of the Project from the proceeds of bonds in an estimated maximum principal amount of
$8,000,000. All reimbursed expenditures will be capital expenditures, costs of issuance of the
bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the
Reimbursement Regulations.

        3.      This Declaration has been made not later than 60 days after payment of any
original expenditure to be subject to a reimbursement allocation with respect to the proceeds of
bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount
not in excess of $400,000 or 5 percent of the proceeds of an issue; or (c) “preliminary expenditures”
up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that
finance or are reasonably expected by the County to finance the project for which the preliminary
expenditures were incurred. The term “preliminary expenditures” includes architectural,

REGULAR SESSION                                                                         Page     273
.




engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of
acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation,
and similar costs incident to commencement of construction.

        4.      This Declaration is an expression of the reasonable expectations of the County
based on the facts and circumstances known to the County as of the date hereof. The anticipated
original expenditures for the Project and the principal amount of the bonds described in
paragraph 2 are consistent with the County‟s budgetary and financial circumstances. No sources
other than proceeds of bonds to be issued by the County are, or are reasonably expected to be,
reserved, allocated on a long-term basis, or otherwise set aside pursuant to the County‟s budget
or financial policies to pay such Project expenditures.

       5.      This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.

       File No. 15 -- Following brief discussion, motion was made by Commissioner Bjerke,
seconded by Commissioner Corcoran and unanimously carried to adopt the following resolution:

                                    RESOLUTION NO. 08-69

       BE IT RESOLVED that the Houston County Board of Commissioners does hereby
approve the Minnesota Lawful Gambling Application for Exempt Permit on behalf of Bluffland
Whitetail Association for gambling activities to be conducted at Ma Cal Grove Country Club in
Caledonia Township.

       File No. 16 -- Following discussion, motion was made by Commissioner Connery,
seconded by Commissioner Graf and unanimously carried to approve the minutes from the Truth
in Taxation meeting held on Thursday, December 4, 2008.

       Motion was made by Commissioner Graf, seconded by Commissioner Corcoran and
unanimously carried to appoint Commissioner‟s Bjerke and Connery to attend the upcoming
mediation meeting with the City of Caledonia to be held on January 26, 2009.

        Discussion was held regarding a request by the Bluff Country HRA for Houston County
to participate in the cost of a proposed Housing study. It was the Board‟s consensus and
understanding that this proposed study was pitched as a selling point for a one-time levy request
in the amount of $50,000.00 for taxes payable in 2008, which the Board approved. This
$50,000.00 levy was then matched with another $50,000.00 from the Greater MN Housing Fund.
The study was not completed with those funds, and now Bluff Country HRA is requesting that
Houston County contribute $1,000.00 toward the housing study, with $500.00 payable now and
the balance due in 2009. It was the consensus of the Board not to contribute toward the cost of
the housing study.



REGULAR SESSION                                                                           Page     274
.




        Finance Director Bradley reported on discussion held at the AMC conference regarding
the State budget deficit and their intent to cut local government aids.

       Finance Director Bradley reported that he was recently made aware of a Federal EDA
grant which the proposed Highway Department Building may be eligible for that could
potentially cover up to 100% of the cost of erecting the building. County Engineer Pogodzinski
and he have completed and submitted the grant paperwork. He reported that the grant application
would be reviewed by Minnesota EDA, and with their approval, would be forwarded onto the
Federal EDA program for a final decision.

       Finance Director Bradley reported that he is waiting for definitive word from the State
with regard to state funding cuts at which time he will be meeting with department heads to
review departmental budgets and to make recommendations. He also reminded everyone that the
next department head meeting would be held Tuesday, December 23, 2008 at 1:00 p.m. in the
Commissioner‟s Room.

      Motion was made by Commissioner Connery, seconded by Commissioner Graf and
unanimously carried to place on file the following items from the consent agenda:

                  File No. 17 -- Correspondence to payroll regarding hire of
          Darlene Walsh and Roger Bernsdorf as transport drivers

                   File No. 18 -- Correspondence to payroll regarding the hire of
          two election judges, Marilyn Sylling and Mona Olson

                    File No. 19 -- Public Notice - Request for sealed bids with
          regard to newspaper publication of County items

                   File No. 20 -- Correspondence to Brian Tippetts regarding tons
          delivered to Xcel in November 2008

                   File No. 21 -- Correspondence from SE MN Dev. Corp.
          thanking Houston County for Appropriation

                  File No. 22 -- Correspondence from MN Energy regarding
          proposed rate increases

                   File No. 23 -- MCIT Certificate of Excellence for outstanding
          Loss Ratio for Property/Casualty plan years 2003-2007

                  File No. 24 -- MCIT Certificate of Excellence for outstanding
          Experience in Workers Compensation for plan years 2003-2007



REGULAR SESSION                                                                     Page   275
.




                 File No. 25 -- Transportation Alliance Legislative Update dated
          December 5, 2008

                   File No. 26 -- Correspondence from Regional Radio Board to
          Legislators requesting support of legislation for ARMER sales tax
          exemption

                   File No. 27 -- AMC Update December 5, 2008

       There being no further business and the time being 11:19 a.m., motion was made by
Commissioner Graf seconded by Commissioner Bjerke and unanimously carried to adjourn the
meeting, the next advertised meeting being Tuesday, December 23, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                                    Page   276
.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, December 23, 2008                 9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:     Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Benson, &
                    Moorhead; Finance Director Bradley; Zoning Administrator Scanlan;
                    Emergency Manager Kuhlers; Commissioner‟s Elect Miller and Augedahl;
                    County Engineer Pogodzinski; Personnel Director Comstock; Maintenance
                    Foreman Molling; Doug Twite; Julie Renk; Mary Newgaard; Jail
                    Administrator Schiltz; Sheriff Ely; Chief Deputy Yeiter; Environmental
                    Services Frank; GIS Coordinator Krzoska

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the December 16, 2008 meeting.

       File No. 1 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve payment of the following claims:

              County Revenue Fund                            $188,608.07
              Road & Bridge Fund                               352,742.95
                                                             ---------------
              Total                                          $541,351.02
                                                             =========

       File No. 2 -- Following discussion and on the recommendation of Finance Director
Bradley, motion was made by Commissioner Connery, seconded by Commissioner Graf and
unanimously carried to adopt the following resolution:

                               RESOLUTION NO. 08-70
                          RESOLUTION ADOPTING 2009 LEVY

                  County Revenue                              $6,151,643
                  Road & Bridge                                2,269,588
                  Human Services                               1,399,787
                  Debt Service                                   255,483
REGULAR SESSION                                                                Page   277
.




                                                                 -------------
                Total Levy                                     $10,076,501
                Less: CPA Certification                           1,132,165
                                                                --------------
                Net Levy                                        $8,944,336

       File No. 3 -- Motion made by Commissioner Connery, seconded by Commissioner
Bjerke and unanimously carried to adopt the following resolution:

                            RESOLUTION NO. 08-71
                 RESOLUTION ADOPTING 2009 OPERATING BUDGET

                                                                              Revenues
                                                                              Over (Under)
                                        Revenue          Expenditures         Expenditures
                                        -------------    ----------------     ----------------
             County Revenue         $ 10,425,050        $ 10,425,050                $0
             Road & Bridge              8,796,327           8,796,327                0
             Human Services             4,729,877           4,729,877                0
             Debt Service                  255,483            255,483                0
                                     ---------------     ---------------         -----------
             Grand Total
              County Funds           $24,206,737         $24,206,737               $0
                                     =========           =========               =======

It should be noted that the potential loss of program aid should not affect equipment purchases as
those are scheduled to be bonded for.

       File No. 4 -- Finance Director Bradley recommended the approval of a contract with
Southeast Consultants, Inc. providing for EDA services. The contract provides for services two
days per week, with a provision for 30 day notification should one or the other party decide to
discontinue the contract. The contract amount is not to exceed $34,592.00. Following discussion,
motion was made by Commissioner Corcoran, seconded by Commissioner Graf and
unanimously carried to approve said contract with Southeast Consultants, Inc.

       County Engineer Pogodzinski reported that he met with the variance committee to
discuss a variance on a roadway design for a project in Spring Grove Township. The variance
request was approved for 15-20 mph curves vs. the standard 30 mph.

        File No. 5 -- County Engineer Pogodzinski reported on a new snow and ice control policy
that he would like the Board to review and consider adopting at the December 30, 2008 meeting.
Engineer Pogodzinski reported that the policy is based on other counties‟ snow and ice control
policies.


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.




      File No. 6 -- Engineer Pogodzinski requested approval of a final estimate on behalf of
Dunn Blacktop Company, Division of Mathy in the amount of $120,683.46 for S.A.P. 28-606-
22. Motion was made by Commissioner Corcoran, seconded by Commissioner Connery and
unanimously carried to adopt the following resolution:

                                 RESOLUTION NO. 08-72

       WHEREAS, Contract No. 183 has in all things been completed, and the County Board
being fully advised in the premises,

        NOW, THEN BE IT RESOLVED, That we do hereby accept said completed project for
and in behalf of the Houston County DOT and authorize final payment as specified herein.

       Zoning Administrator Scanlan reported on a grant available through Homeland Security
in the amount of $3,000.00 which he will be applying for. The grant is intended for use in
upgrading GIS with regard to the feedlot program. Zoning Administrator Scanlan indicated that
funds would be utilized to purchase a laptop to display maps at planning commission meetings.
Both GIS Coordinator Krzoska and IS Milde believe the funds would cover the necessary
equipment costs. The grant application must be applied for through the Emergency Management
Department.

       Zoning Administrator Scanlan reported that the final plat for Boyum Sub-division has
been completed and approved by County Surveyor Walter and the Mound Prairie town board.
The plat is for a residential sub-division comprised of a single, nine acre lot. On the
recommendation of the Planning Commission, motion was made by Commissioner Corcoran,
seconded by Commissioner Connery and unanimously carried to approve said plat.

       File No. 7 -- Personnel Director Comstock requested authorization to hire Jamie Acker as
a Drop-site Supervisor. This position is on an as-needed basis. Environmental Services Frank
reported that two drop-site supervisors recently resigned. Mr. Frank has been staffing the La
Crescent location with a recent hire and an on-call back-up employee, and he needs to fill the
back-up position. Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve the hiring of Jamie Acker.

        Personnel Director Comstock requested authorization to hire Jessamine Breault and
Jessica Siminski (formerly Lewis) as on-call dispatchers. Both positions are on an as-needed
basis. Sheriff Ely reported that both candidates have experience with dispatching and would
require minimal training. Motion was made by Commissioner Connery, seconded by
Commissioner Bjerke and unanimously carried to approve the hire of both Breault and Siminski.

        Personnel Director Comstock requested that the Board approve the status change of
Social Workers Anna Schoener and Christene Chartier from probationary to permanent status
effective on their anniversary dates. Motion was made by Commissioner Corcoran, seconded by


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.




Commissioner Graf and unanimously carried to approve said status change for Social Workers
Anna Schoener and Christene Chartier.

       Commissioner Elect Miller inquired, rather than approve status changes for these two
employees, whether the Board should consider a position cut. It was pointed out that changing
employment status is a required procedure, if performance is acceptable. If positions are cut it
would be layoff. Due to the economic times, things such as this will be reviewed and decisions
made. However, the Board prefers to reduce staff through resignations and/or retirements if
possible.

       File No. 8 -- Personnel Director Comstock reported on inefficiencies of the west
courthouse entrance due to regulations with regard to handicap accessibility and tension
requirements. Personnel Director Comstock reported that this could be alleviated by installing an
automatic door opener. If this is installed, the tension on the door could be increased, thereby
keeping the door closed tightly while functioning within guidelines for accessibility. Personnel
Director Comstock has reviewed the 2008 budget for building repairs and maintenance and
reported that funds are available to install the automatic door opener. He requested authorization
to accept the quote from La Crosse Glass Company in the amount of $2,440.00. Motion was
made by Commissioner Corcoran, seconded by Commissioner Bjerke and unanimously carried
to authorize the installation of said automatic door opener.

       Personnel Director Comstock provided a reminder with regard to the Department Head
meeting scheduled for 1:00 p.m. today.

        Emergency Manager Kuhlers reported that the County Hazard Mitigation Plan was on
schedule and within budget, that the most recent community meeting with regard to the plan was
well attended and that the plan will be submitted to the State soon. Following State approval the
plan will go to FEMA and is expected back to the Board by mid-January 2009 for final approval
by the county and cities. Emergency Manager Kuhlers also expressed that the company assisting
with the plan has been excellent to work with and has done and immense amount of research to
ensure that the plan is well prepared. The Plan can be found on the county webpage.

        Emergency Manager Kuhlers reported that the entire Emergency Operations Plan has
been updated. The Emergency Operations Plan has the approval of Craig Strand from the State
and needs Board approval. It was consensus to table the approval until the new commissioners
take office and there has been adequate time to review the plan.

        At this time, discussion was held with regard to safety during Board meetings in light of
the recent incident in Morrison County. It was agreed that the Sheriff‟s Department would assess
safety concerns and make recommendations to the Board.

        File No. 9 -- At this time the Board recognized the following employees for their years of
service to Houston County:


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.




                          35 Year Awards
                          Mary A. Newgaard

                          30 Year Awards
                          Douglas J. Twite

                          20 Year Awards
                          David J. Bauer
                          Mark P. Schiltz

                          15 Year Award
                          David Corcoran
                          Larry E. Graf
                          Nancy M. Peter
                          Julie A. Renk
                          Ann M. Thompson

                          10 Year Awards
                          Cynthia M. Cresswell
                          Daniel J. Krzoska
                          Randi K. Vick

        File No. 10 -- At this time Maintenance Foreman Molling met with the Board and
requested authorization to purchase a John Deere 550J crawler dozer, and a John Deere 644K
four wheel drive loader from RDO Equipment through the state bid, in the total amount of
$113,154.65. These are budgeted items for 2009, with the request being made at this time in
order to avoid the 2009 pricing increases of $6,700.00 on the dozer and $8,100.00 on the loader.
There was extensive discussion with regard to the equipment, the timing of the trade-in and
purchase, current budget issues, rental options, accessibility and need during regular times and
emergency situations, value of warranty, warranty term and the conditions the proposed trade-in
equipment are subject to having been in service during a period when the county suffered
through two major flood events and the possible ramifications if the purchase is denied. It is the
recommendation of the Public Works Committee to purchase the equipment and maintain the
current rotation schedule. Maintenance Foreman Molling reported that the Highway Department
will forego the request to purchase a budgeted compactor in the amount of $31,100.00 in an
effort to address the pending budget issues. Motion was made by Commissioner Corcoran,
seconded by Commissioner Connery and unanimously carried to authorize the purchase of said
equipment.

        Maintenance Foreman Molling requested authorization to purchase a New Holland skid
loader. This would be equipment new to the fleet. Maintenance Foreman Molling reported that
the skid loader would be used to clear snow from the Meyer property in winter months and used
in the summer for the installation of culverts and other jobs requiring smaller equipment. The
County has rented this type of equipment in the past; however, the availability of rental

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.




equipment is becoming an issue. It was agreed that Mr. Molling will provide the amounts paid
for rental of this type of equipment and the anticipated service life of this equipment.

       File No. 11 -- Motion was made by Commissioner Corcoran, seconded by Commissioner
Graf and unanimously carried to approve the issuance of the following Tobacco Licenses for
2009: Money Creek Haven, Lawrence Lake Marina, High Plains Cenex, and Houston Food
Mart.

        File No. 12 -- It was the consensus of the Board that the Board of Equalization meeting
will be held on Monday, June 15, 2009 at 7:00 p.m.

       File No. 13 -- Motion was made by Commissioner Bjerke seconded by Commissioner
Connery and unanimously carried to approve the following 2008 Disaster Credits totaling
$9,680.63:

Robert & Mildred Nagel              Parcel #06.0422.000                     $162.14

Thomas & Kay Rohn                   Parcel #10.0118.001                      $75.40

Robert Sanders                      Parcel #17.0194.001                     $532.32

Francis Keefe Trust                 Parcel #20.0004.004                   $1,300.80

Debra Myhre                         Parcel #21.0929.000                     $435.00

Kevin Collins                       Parcel #25.0729.001                   $5,427.00

David & Virginia Faas               Parcel #25.1909.000                   $1,747.97

        File No. 14 -- Received and filed from Sno-Gophers Snowmobile Club was a trail
assistance request. Motion was made by Commissioner Bjerke, seconded by Commissioner
Connery and unanimously carried to adopt following resolution:

                                 RESOLUTION NO. 08-73

      BE IT RESOLVED By the Board of County Commissioners, Houston County,
Minnesota, that it approves the application of the Caledonia Sno-Gophers and authorizes the
Board Chairman and the County Auditor to sign an agreement with the Department of Natural
Resources.

        Motion was made by Commissioner Connery, seconded by Commissioner Corcoran and
unanimously carried to appoint Personnel Director Comstock and Finance Director Bradley to
review EDA needs and requirements and to formulate a restructuring that would result in the
duties being satisfied in-house.

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.




      Motion was made by Commissioner Corcoran, seconded by Commissioner Bjerke and
unanimously carried to place on file the following items from the consent agenda:

                  File No. 15 -- Correspondence to employees receiving
         recognition awards

                    File No. 16 -- Notice of employee appreciation

                    File No. 17 -- Memo regarding short notice disbursements
         policy

                   File No. 18 -- Correspondence from Semcac regarding public
         transit bus dedication ceremony

                 File No. 19 -- Correspondence from Gregory Davids regarding
         Solum zoning issue

                 File No. 20 -- Correspondence to Scott Anderson regarding the
         appointment of Commissioner Bjerke and Connery to represent the
         County Board in the mediation session with the City of Caledonia

                    File No. 21 -- Correspondence to payroll regarding 2009
         salaries

               File No. 22 -- Correspondence to legislature regarding
         ARMER sales tax exemption

                    File No. 23 -- Information regarding the MN Redesign Project

                    File No. 24 -- AMC Update dated December 22, 2008

                    File No. 25 -- Correspondence to Mary Newgaard thanking her for years of
       service




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.




       There being no further business and the time being 10:55 a.m., motion was made by
Commissioner Graf, seconded by Commissioner Corcoran and unanimously carried to adjourn
the meeting, the next advertised meeting being Tuesday, December 30, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




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.




    PROCEEDINGS OF THE BOARD OF COUNTY COMMISSIONERS

Date: Tuesday, December 30, 2008                    9:00 a.m.

Place: Commissioners Room, Courthouse, Caledonia, MN

Members Present: Larry Graf, Larry Connery, Ann Thompson, David Corcoran and Tom
                 Bjerke

Others Present:    Auditor Meiners; Deputy Auditor Quinn; Reporters Warner, Benson, &
                   Moorhead; Finance Director Bradley; County Engineer Pogodzinski;
                   Personnel Director Comstock; Court Administrator Larson; Environmental
                   Services Director Frank; Commissioner‟s Elect Augedahl and Miller; Social
                   Services Supervisor Poepping

Presiding: Ann Thompson, Chairperson

       Call to order.

      Motion was made by Commissioner Graf, seconded by Commissioner Bjerke and
unanimously carried to approve the minutes of the December 23, 2008 meeting.

      File No. 1 -- Motion was made by Commissioner Graf, seconded by Commissioner
Connery and unanimously carried to approve payment of the following claims:

              County Revenue Fund                                 $73,330.91
              Road & Bridge Fund                                   15,657.80
                                                                ---------------
              Total                                               $88,988.71
                                                                =========

       File No. 2 – Motion was made by Commissioner Connery, seconded by Commissioner
Bjerke and unanimously carried to approve the License Center disbursements.

        County Engineer Pogodzinski reported that six firms have submitted proposals regarding
the proposed Highway Department Building. Engineer Pogodzinski recommended that
interviews be conducted with two or three of the firms. He reported that the firms submitting
proposals are architectural firms who will do cost estimating and conduct the project bidding. It
was agreed that Engineer Pogodzinski would schedule interviews for the afternoon of January
12, 2009.

      County Engineer Pogodzinski reported that he anticipates the Federal EDA grant will be
awarded sometime in March 2009. If the proposed Highway Department Building is chosen as a


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.




grant recipient, the project must be prepared to break ground by July 15, 2009 which means the
process must continue moving forward.

       File No. 3 -- County Engineer Pogodzinski recommended that the Board adopt the Snow
and Ice Policy that was presented at the last meeting. Should the policy be adopted, County
Engineer Pogodzinski offered to provide copies of the policy to the cities and townships. In
addition, the policy will be posted on the County website under the Highway Department‟s page.
Following discussion, motion was made by Commissioner Graf, seconded by Commissioner
Bjerke and unanimously carried to adopt said policy.

        County Engineer Pogodzinski reported on grant funding that would provide for the
installation of 20 centerline miles of rumble stripes and reflective painting. The rumble strips
provide an audible warning to a driver who has left the driving lane and the reflective stripes
provide a visual identification with regard to the road shoulders, especially at night and during
times of low visibility. Discussion was held regarding the necessary paved width of roadways
where installation could be considered, use by agricultural equipment which may degrade the
shoulders if the agricultural equipment is driven on the shoulders treated, and the potential
benefit to the County. It was discussed that the rumble strips provide the greatest benefits on
long stretches of relatively straight roadways. Houston County has many curving roadways that
the reflective painting would benefit, yet lacks the necessary width and limited travel by
agricultural machinery to experience a great benefit. It was the consensus of the Board to forego
pursuing said grant.

       File No. 4 -- Personnel Director Comstock recommended approval of an amendment to a
contract with the Department of Corrections for the Sentence to Service program. The proposed
amendment reduces the final payment obligation by $3,489.00. Motion was made by
Commissioner Connery, seconded by Commissioner Graf and unanimously carried to approve
said contract amendment.

        File No. 5 -- Personnel Director Comstock recommended adoption of the following
resolution providing for a joint powers agreement for medical examiner and morgue services
through Dakota County with Regina Medical Center. Motion was made by Commissioner
Connery, seconded by Commissioner Corcoran and unanimously carried to adopt following
resolution:

                                  RESOLUTION NO. 08-74

      WHEREAS, Houston County along with Carver County, Chisago County, Dakota
County, Fillmore County, Goodhue County, and Scott County contract for medical examiner and
morgue services with Regina Medical Center through a Joint Powers Agreement with Dakota
County; and

       WHEREAS, Houston County has received and reviewed a copy of the proposed 2009
contract for medical examiner and morgue services; and

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.




        WHEREAS, the Joint Powers Agreement provides that each member county retains the
right to object to the contract for medical examiner and morgue services;

       NOW, THEREFORE, BE IT RESOLVED, That the Houston County Board of
Commissioners hereby authorizes the Chair of the Dakota County Board of Commissioners to
execute a contract with Regina Medical Center for the term of January 1, 2009 through
December 31, 2009, substantially as presented on December 30, 2008, on behalf of Dakota
County and Carver, Chisago, Fillmore, Goodhue, Houston and Scott Counties, subject to
approval of an authorizing resolution by all seven counties.

       File No. 6 -- Personnel Director Comstock reported that he was recently made aware of a
National Intergovernmental Purchasing Alliance (National IPA) for office supplies. The National
IPA does not have a membership fee. It includes automatic re-bid services, conforms to
competitive bid statues, and allows Houston County to continue ordering office supplies from
Corporate Express, our current supplier. However, membership to the National IPA would
provide for an estimated 19% savings overall, or $8,000 to $10,000 dollars annually, for office
supplies purchased by Houston County. Motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to join the National IPA.

       File No. 7 -- Personnel Director Comstock reported that extenuating circumstances
prevented several employees from reducing their accumulated vacation totals by the year end
deadline. On the recommendation of Personnel Director Comstock, motion was made by
Commissioner Connery, seconded by Commissioner Bjerke and unanimously carried to approve
extending the time which Tom Dybing, Mike Kost, Dianne Allen, Dick Walter, Tim Lange and
Char Meiners have to reduce their vacation balances to the accumulated maximum by January
31, 2009.

       File No. 8 -- Personnel Director Comstock recommended that the Board approve the
revised Code of Ethics Policy which mirrors statutory language, with added components from
both the Association of Counties and NACO model policies. Mr. Comstock reported that, in
addition to applying to elected officials and county employees, the policy has been expanded to
include boards and committees making recommendations to the County Board. Motion was
made by Commissioner Corcoran, seconded by Commissioner Connery and unanimously carried
to adopt the revised Code of Ethics Policy.

        File No. 9 -- At this time Environmental Services Director Frank met with the Board and
requested approval of licenses and contracts for 2009. Motion was made by Commissioner
Corcoran, seconded by Commissioner Connery and unanimously carried to approve the issuance
of the following licenses:

1. HILLTOPPER REFUSE & RECYCLING
1. Collection and Transportation License Application
2. Agreement for Hauling of Waste

REGULAR SESSION                                                                   Page     287
.




3. Houston County Collection and Transportation License

2.   SHIRLEY GIBLIN
1.   Collection and Transportation License Application
2.   Agreement for Hauling of Waste
3.   Houston County Collection and Transportation License

3. HOUSTON COUNTY RECYCLING CENTER
1. Collection and Transportation License Application
2. Agreement for Hauling of Waste
3. Intermediate Solid Waste Disposal Facility License
4. Houston County Collection and Transportation License

4. WASTE MANAGEMENT
1. Collection and Transportation License Application
2. Agreement for Hauling of Waste
3 Agreement for Collection of Recyclables
4. Houston County Collection and Transportation License

5. MIDWEST ROLL-OFF
1. Collection and Transportation License Application
2. Agreement for Hauling of Waste
3. Houston County Collection and Transportation License

6. HARTER’S QUICK CLEAN-UP
1. Collection and Transportation License Application
2. Agreement for Hauling of Waste
3 Agreement for Collection of Recyclables
4. Houston County Collection and Transportation License

7. RICHARD’S SANITATION
1. Collection and Transportation License Application
2. Agreement for Hauling of Waste
3 Agreement for Collection of Recyclables
4. Intermediate Solid Waste Disposal Facility License

       File No. 10 -- On the recommendation of Environmental Services Director Frank, motion
was made by Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried
to approve a 3.1% COLA increase for Richard‟s Sanitation contract based on “Producer Price
Index Industry Data for Solid Waste Collection”.

      File No. 11 -- On the recommendation of Environmental Services Director Frank, motion
was made by Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried


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.




to approve the contract with ABC Recycling Center/Woodland Industries for 2009, which
provides for a 3% COLA increase for personnel.

       On the recommendation of Environmental Services Director Frank, motion was made by
Commissioner Corcoran, seconded by Commissioner Graf and unanimously carried to approve
the 2009 contract with Shirley Giblin for transportation of tires to Wisconsin, which reflected no
increase from the 2008 contract rate.

        Environmental Services Director Frank reported that, following denial by the Minnesota
Supreme Court to hear the Solum case, legal counsel recommends contacting Solum‟s to request
their intent and/or plan to bring the house into compliance with zoning ordinances. Legal counsel
recommended a 30 day response period. Motion was made by Commissioner Graf, seconded by
Commissioner Bjerke and unanimously carried to authorize legal counsel to implement said
recommendation.

        File No. 12 -- Finance Director Bradley reported on a proposed revision to the Investment
Policy. Finance Director Bradley reported that the proposed revised policy has been reviewed by
the state auditors and staff. The biggest change provided by the revision is the formation of an
investments committee consisting of two commissioners, the Finance Director, County
Treasurer, and the accountants from the Highway Department and Human Services. The revision
requires compliance by vendors and further refines and defines acceptable risk and types of
investments for Houston County. Following discussion and on the recommendation of Finance
Director Bradley, motion was made by Commissioner Connery, seconded by Commissioner Graf
and unanimously carried to adopt the revised Investment Policy.

        Finance Director Bradley recommended that the Board meet to discuss current budget
issues and cuts. It was agreed that a meeting would be scheduled for January 12, 2009 at 9:00
a.m.

        Finance Director Bradley reported on a property tax issue with the property occupied by
LaX Fabricating. Finance Director Bradley has had discussion with the Minnesota Department of
Revenue, County Attorney Bublitz and LaX Fabricating. LaX Fabricating expressed that it was
their understanding that they would not be responsible for 2008 property taxes. They did not
meet statutory occupancy requirements for property tax relief, therefore, taxes were considered
due and payable. The second half taxes were not paid and have been assessed penalties. In an
effort to keep the business in the County and work through the mis-understanding with regard to
property tax benefits, the Minnesota Department of Revenue has indicated it would consider
waiving the penalties which have been assessed provided that the County, LaX Fabricating, the
school district and also the City of Spring Grove can negotiate a payment plan for the taxes due.
The plan would be submitted to the Minnesota Department of Revenue, and upon approval, the
penalties would be waived. It was the consensus of the Board to authorize Commissioner Bjerke
and Finance Director Bradley to meet with LaX Fabricating, the City of Spring Grove and the
school district in order to prepare a payment agreement for submission to the Minnesota
Department of Revenue.

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.




        Finance Director Bradley, along with Commissioner Bjerke, indicated that they spoke
with a representative from DEED about incentives and it was agreed to schedule a meeting with
the Mayor of Spring Grove and Northern Engraving and open dialogue to find out the needs of
the company and whether anything can be done to encourage the business to remain in Spring
Grove. Information gleaned recently may indicate that the company‟s West Salem location is
larger, has room for expansion and that the Spring Grove jobs may be relocating there. This
proposed meeting would be used to identify possible assistance that could be offered if the
company remained in Spring Grove. It was the consensus of the Board to authorize Finance
Director Bradley and Commissioner Bjerke to enter into discussion with Northern Engraving in
an effort to identify possible options to keep the business local.

       File No. 13 -- Court Administrator Larson met with the Board to discuss a contract
addendum with Rippe, Hammell and Murphy to provide court appointed counsel to parents
involved in CHIPS and TPR cases for a period from January 1, 2009 through December 31,
2010, for a fee of $1,000.00 per month with $2,000.00 additional available in 2009 and
$1,000.00 additional available in 2010 should a case where a conflict is present arise. On the
recommendation of Court Administrator Larson, motion was made by Commissioner Connery,
seconded by Commissioner Corcoran and unanimously carried to approve said contract
addendum.

       File No. 14 -- Social Services Supervisor Poepping reported on a grant, in the amount of
$5,000.00 to continue the Parent Support Outreach Program (PSOP) her department has been
awarded. The PSOP‟s goal is to reduce out-of-home placements. Social Services Supervisor
Poepping reported that her office has received this grant in past years, however, this year the
amount has been reduced by half. Social Services Poepping recommended the Board take action
to accept the grant. Motion was made by Commissioner Bjerke, seconded by Commissioner
Corcoran and unanimously carried to accept said grant funds.

        Commissioner Bjerke reported on a recent department head meeting that he and
Commissioner Graf attended where the need for departments to identify possible areas to reduce
their budgets was discussed.

      Motion was made by Commissioner Bjerke, seconded by Commissioner Graf and
unanimously carried to place on file the following items from the consent agenda:

                   File No. 15 -- Correspondence from Minnesota Supreme Court
          regarding denial to hear Solum case

                    File No. 16 -- Correspondence to payroll regarding the hire of
          Jamie Acker, Jessamine Breault and Jessica Siminski, and the change in
          status of both Anna Schoener and Christene Chartier from probationary
          to permanent


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.




                   File No. 17 -- Various letters to county residents with regard to
          2008 disaster credits

                    File No. 18 -- Correspondence from MN Dept of Revenue with
          regard to unallotment of 2008 program aid

       There being no further business and the time being 10:35 a.m., motion was made by
Commissioner Graf, seconded by Commissioner Bjerke and unanimously carried to adjourn the
meeting, the next advertised meeting being Tuesday, January 6, 2008.

                                            BOARD OF COUNTY COMMISSIONERS
                                            HOUSTON COUNTY, MINNESOTA

                                            By: ________________________________
                                                   Ann Thompson, Chairperson

Attest: _____________________________
         Charlene Meiners, County Auditor




REGULAR SESSION                                                                        Page   291

								
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