Government : Board of Supervisors Minutes 6/9/15

June 9, 2015

The Benton County Board of Supervisors met in regular session with Supervisors Frese, Hertle and Wiley present. The meeting was called to order at 9:00 a.m.

Moved by Hertle, seconded by Wiley, to approve the minutes of June 2, 2015. All members voting aye thereon. Motion carried.

Moved by Hertle, seconded by Wiley, to approve the Second Amendment to the Decat Program Administration Contract between the Iowa Department of Human Services and the Benton County Board of Supervisors for the period July 1, 2015 through June 30, 2016 . All members voting aye thereon. Motion carried.

Moved by Wiley, seconded by Hertle, to enter into a Contract for Decategorization Program Administration between the Benton County Board of Supervisors and Benton/Iowa County Decat and Heidi Schminke and Erin Monaghan for decategorization services for the period beginning July 1, 2015 and ending June 30, 2016. All members voting aye thereon. Motion carried.

Moved by Wiley, seconded by Hertle, to approve final Application and Certificate for payment to Zephyr Aluminum for the courthouse window project. All members voting aye thereon. Motion carried.

Moved by Wiley, seconded by Hertle, to enter into Law Enforcement Contracts with the City of Mt. Auburn for fiscal year 2016, providing for 26 hours of coverage at an annual cost of $585.00 and with the City of Atkins for fiscal year 2016, providing for 936 hours of coverage at an annual cost of $21,060.00. All members voting aye thereon. Motion carried.

The board discussed the bids received for a loan for the new landfill cell. Bids were received as followed:

Bank6/1/20166/1/20176/1/2018Net Interest CostEffective Interest Rate

Cedar Valley Bank & Trust 0.50%1.00%1.50%$9,395.000.7778000

Regions (* see below)1.54%1.54%1.54%$11,885.001.5400000

BankIowa-Norway3.50%3.50%3.50%$27,010.573.5000000

MidwestOne Bank3%3%3%$24,396.523.0930000

$402,642 General Obligation Solid Waste Disposal Note

$134,214 maturing on 6/1/17, 6/1/18, 6/1/19

*Bonds to be issued as one term bond with no CUSIP numbers

*Regions will provide paying agent services at no additional cost

*The 1.54% rate Regions Bank is quoting is a tax exempt rate, subject to an acceptable opinion letter from Borrowers counsel.

*Issuer would be responsible for all closing costs to include Bank Review Counsel Fee that will not exceed $3,500

*Rate is binding through award date of Friday, June 12, 2015 for funding on Wednesday, July 1st, 2015. Afterwards, rate will be subject to market conditions.

Moved by Hertle, seconded by Wiley to adopt Resolution Number 15-36, Resolution authorizing and approving a Loan Agreement. Voting aye were Frese, Hertle, and Wiley. Nays none. Motion carried.

RESOLUTION NO. 15-36

Resolution authorizing and approving a Loan Agreement and providing for the issuance of a $402,642 General Obligation Solid Waste Disposal Note, Series 2015, and providing for the levy of taxes to pay the same

WHEREAS, pursuant to the provisions of Section 331.402 of the Code of Iowa, the Board of Supervisors (the “Board”) of Benton County, Iowa (the “County”), has heretofore proposed to contract indebtedness and enter into a loan agreement (the “Loan Agreement”) in a principal amount not to exceed $402,642, for the purpose of paying the cost, to that extent, of constructing a facility for the disposal of solid waste to be operated by the Benton County Solid Waste Disposal Commission, and has published notice of the proposed action and has held a hearing thereon; and

WHEREAS, bids have been received for the purchase of a $402,642 General Obligation Solid Waste Disposal Note, Series 2015 (the “Note”) in evidence of the obligation of the County under the Loan Agreement, and it is necessary at this time to authorize and approve the Loan Agreement and to make provision for the issuance the Note;

NOW, THEREFORE, Be It Resolved by the Board of Supervisors of Benton County, Iowa, as follows:

Section 1.The Board hereby determines that the bid from Cedar Valley Bank & Trust, Vinton, Iowa (the “Bank”) is the best bid, providing the lowest interest cost to the County, and the Board determines to enter into the Loan Agreement with the Bank, providing for a loan to the County in the principal amount of $402,642 for the purpose set forth in the preamble hereof.

The Chairperson and County Auditor are hereby authorized and directed to sign the Loan Agreement on behalf of the County, and the Loan Agreement is hereby approved.

Section 2.The Note is hereby authorized to be issued in evidence of the obligation of the County under the Loan Agreement, in the principal amount of $402,642 for the purpose set forth in the preamble hereof.

The County Auditor is hereby designated as the registrar and paying agent for the Note and may be hereinafter referred to as the “Registrar” or the “Paying Agent.”

Principal of the Note shall be payable in annual installments due on June 1 in each of the years and in the respective amounts and shall bear interest at the respective rates, as follows:

Year

Principal
Installment

Interest Rate
Per Annum

2016

$134,214

0.50%

2017

$134,214

1.00%

2018

$134,214

1.50%

Accrued interest on the Note shall be payable semiannually on the first day of June and December in each year, commencing December 1, 2015. Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months.

Payment of both principal of and interest on the Note shall be made to the registered owner appearing on the registration books of the County at the close of business on the fifteenth day of the month next preceding the payment date and shall be paid by check or draft mailed to the registered owner at the address shown on such registration books; provided, however, that the final installment of principal and interest shall be payable only upon presentation and surrender of the Note to the Paying Agent.

The County reserves the right to prepay principal of the Note in whole or in part at any time prior to and in inverse order of maturity on terms of par and accrued interest. All principal so prepaid shall cease to bear interest on the prepayment date.

The Note shall be executed on behalf of the County with the official manual or facsimile signature of the Chairperson and attested by the official manual or facsimile signature of the County Auditor and shall be a fully registered Note without interest coupons. In case any officer whose signature or the facsimile of whose signature appears on the Note shall cease to be such officer before the delivery of the Note, such signature or such facsimile signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery.

The Note shall be fully registered as to principal and interest in the name of the owner on the registration books of the County kept by the Registrar, and after such registration, payment of the principal thereof and interest thereon shall be made only to the registered owner or its legal representatives or assigns. The Note shall be transferable without cost to the registered owner thereof only upon the registration books of the County upon presentation to the Registrar, together with either a written instrument of transfer satisfactory to the Registrar or the assignment form thereon completed and duly executed by the registered owner or the duly authorized attorney for such registered owner.

The record and identity of any owners of the Note shall be kept confidential as provided by Section 22.7 of the Code of Iowa.

Section 3.The Note shall be in substantially the following form:

(Form of Note)

UNITED STATES OF AMERICA
STATE OF IOWA
BENTON COUNTY

GENERAL OBLIGATION SOLID WASTE DISPOSAL NOTE, SERIES 2015

$402,642

MATURITY DATE

NOTE DATE

June 1, 2018

July 1, 2015

Benton County (the “County”), Iowa, for value received, promises to pay in the manner hereinafter provided to

Cedar Valley Bank & Trust

Vinton, Iowa

or registered assigns, the principal sum of FOUR HUNDRED TWO THOUSAND, SIX HUNDRED FORTY-TWO DOLLARS, together with interest on the outstanding principal hereof from the date of this Note, or from the most recent payment date on which interest has been paid, except as the provisions hereinafter set forth with respect to prepayment prior to maturity may be or become applicable hereto.

Principal of this Note shall be payable in annual installments due on June 1 in each of the years and in the respective amounts and shall bear interest at the respective rates, as follows:

Year

Principal
Installment

Interest Rate
Per Annum

2016

$134,214

0.50%

2017

$134,214

1.00%

2018

$134,214

1.50%

Accrued interest on this Note shall be payable semiannually on the first day of June and December in each year, commencing December 1, 2015. Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months.

Both principal of and interest on this Note are payable to the registered owner appearing on the registration books of the County maintained by the County Auditor (hereinafter referred to as the “Registrar” or the “Paying Agent”) at the close of business on the fifteenth day of the month next preceding the payment date in lawful money of the United States of America by check or draft mailed to the registered owner at the address shown on such registration books; provided, however, that the final installment of principal and interest shall be payable only upon presentation and surrender of this Note to the Paying Agent.

This Note is issued by the County to evidence its obligation under a certain Loan Agreement, dated as of July 1, 2015 (the “Loan Agreement”) entered into by the County for the purpose of paying the cost, to that extent, of constructing a facility for the disposal of solid waste to be operated by the Benton County Solid Waste Disposal Commission.

This Note is issued pursuant to and in strict compliance with the provisions of Chapters 76 and 331 of the Code of Iowa, 2015, and all other laws amendatory thereof and supplemental thereto, and in conformity with a resolution of the County Board of Supervisors authorizing and approving the Loan Agreement and providing for the issuance and securing the payment of this Note (the “Resolution”), and reference is hereby made to the Resolution and the Loan Agreement for a more complete statement as to the source of payment of this Note and the rights of the owner of this Note.

The County reserves the right to prepay principal of this Note, in whole or in part, at any time prior to and in inverse order of maturity on terms of par and accrued interest. All principal so prepaid shall cease to bear interest on the prepayment date.

This Note is fully negotiable but shall be fully registered as to both principal and interest in the name of the owner on the books of the County in the office of the Registrar, after which no transfer shall be valid unless made on said books and then only upon presentation of this Note to the Registrar, together with either a written instrument of transfer satisfactory to the Registrar or the assignment form hereon completed and duly executed by the registered owner or the duly authorized attorney for such registered owner.

The County, the Registrar and the Paying Agent may deem and treat the registered owner hereof as the absolute owner for the purpose of receiving payment of or on account of principal hereof, premium, if any, and interest due hereon and for all other purposes, and the County, the Registrar and the Paying Agent shall not be affected by any notice to the contrary.

And It Is Hereby Certified and Recited that all acts, conditions and things required by the laws and Constitution of the State of Iowa, to exist, to be had, to be done or to be performed precedent to and in the issue of this Note were and have been properly existent, had, done and performed in regular and due form and time; that provision has been made for the levy of a sufficient continuing annual tax on all the taxable property within the County for the payment of the principal of and interest on this Note as the same will respectively become due; and that the total indebtedness of the County, including this Note, does not exceed any constitutional or statutory limitations.

IN TESTIMONY WHEREOF, Benton County, Iowa, by its Board of Supervisors, has caused this Note to be executed by its Chairperson and attested by its County Auditor, on July 1, 2015.

BENTON COUNTY, IOWA

By (DO NOT SIGN)
Chairperson, Board of Supervisors

Attest:

(DO NOT SIGN)
County Auditor

ABBREVIATIONS

The following abbreviations, when used in this Note, shall be construed as though they were written out in full according to applicable laws or regulations:

TEN COM

-

as tenants in common

UTMA

(Custodian)

TEN ENT

-

as tenants by the entireties

As Custodian for

JT TEN

-

as joint tenants with right
of survivorship and not
as tenants in common

(Minor)

under Uniform Transfers to Minors Act

(State)

Additional abbreviations may also be used though not in the list above.

ASSIGNMENT

For valuable consideration, receipt of which is hereby acknowledged, the undersigned assigns this Note to

(Please print or type name and address of Assignee)

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

and does hereby irrevocably appoint ___________________________________, Attorney, to transfer this Note on the books kept for registration thereof with full power of substitution.

Dated:

Signature guaranteed:

NOTICE: The signature to this Assignment must correspond with the name of the registered owner as it appears on this Note in every particular, without alteration or enlargement or any change whatever.

Section 4.The Note shall be executed as herein provided as soon after the adoption of this resolution as may be possible and thereupon shall be delivered to the Registrar for registration and delivery to the Bank, upon receipt of the loan proceeds, and all action heretofore taken in connection with the Loan Agreement is hereby ratified and confirmed in all respects.

Section 5.For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on the Note as the same become due, there is hereby ordered levied on all the taxable property in the County in each of the years while the Note is outstanding, a tax sufficient for that purpose, and in furtherance of this provision, but not in limitation thereof, there is hereby levied on all the taxable property in the County the following direct annual tax for collection in each of the following fiscal years:

For collection in the fiscal year beginning July 1, 2016,
sufficient to produce the net annual sum of $137,570;

For collection in the fiscal year beginning July 1, 2017,
sufficient to produce the net annual sum of $136,228;

(such taxes being supplemental and additional to taxes previously authorized by the County Board of Supervisors for this purpose for collection in the fiscal year that will begin July 1, 2015)

Section 6.A certified copy of this resolution shall be filed with the County Auditor, and the Auditor is hereby instructed to enter for collection and assess the tax hereby authorized. When annually entering such taxes for collection, the County Auditor shall include the same as a part of the tax levy for Debt Service Fund purposes of the County and when collected, the proceeds of the taxes shall be converted into the Debt Service Fund of the County and set aside therein as a special account to be used solely and only for the payment of the principal of and interest on the Note hereby authorized and for no other purpose whatsoever.

Section 7.The interest or principal and both of them falling due in any year or years shall, if necessary, be paid promptly from current funds on hand in advance of taxes levied and when the taxes shall have been collected, reimbursement shall be made to such current funds to the sum thus advanced.

Section 8.It is the intention of the County that interest on the Note be and remain excluded from gross income for federal income tax purposes pursuant to the appropriate provisions of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations in effect with respect thereto (all of the foregoing herein referred to as the “Internal Revenue Code”). In furtherance thereof, the County covenants to comply with the provisions of the Internal Revenue Code as they may from time to time be in effect or amended and further covenants to comply with the applicable future laws, regulations, published rulings and court decisions as may be necessary to insure that the interest on the Note will remain excluded from gross income for federal income tax purposes. Any and all of the officers of the County are hereby authorized and directed to take any and all actions as may be necessary to comply with the covenants herein contained.

The County hereby designates the Note as a “Qualified Tax Exempt Obligation” as that term is used in Section 265(b)(3)(B) of the Internal Revenue Code.

Section 9.All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.

Passed and approved on June 9, 2015.

Chairperson, Board of Supervisors

Attest:

County Auditor

Moved by Hertle, seconded by Wiley, to approve checks numbered 214816 through 214983, payroll checks numbered 138240 through 138258, and ACH deposits numbered 24219 through 24351, for payment. All members voting aye thereon. Motion carried. A claim submitted by David Thompson for t-shirts was excluded and placed on next week’s agenda to discuss with Thompson.

Supervisor Hertle reported Director Debbie Durham with the Iowa Department of Economic Development is coming to Benton County on June 17th to speak and asked if all members of the board of supervisors would attend to show good representation of the county. Benton Development Group is asking all mayors and city council members to attend as well. Supervisor Wiley stated he is not against land use changes for economic development and that they should be viewed on a case-by-case basis. Wiley doesn’t want to discourage any potential economic development opportunities because of the land use ordinance that the county currently has in place. Supervisor Frese told Wiley to say something at the meeting so that the public knows that the Board is open to review land use changes for economic development.

Supervisor Wiley reported that he took down the animal shelter sign. He is thinking of getting a chain with a sign to go across the driveway from post to post. The other supervisors agreed.

Supervisor Hertle questioned with RAGBRAI coming through town in about a month if the county’s insurance covered any liability that the county would need for that. Wiley stated he would call Judy Funk with Heartland Insurance Risk Pool to check.

Supervisor Hertle reported on the courthouse clock. Hertle stated the gears are cut and they are working as fast as they can.

Moved by Wiley, seconded by Hertle, to adjourn. All members voting aye thereon. Motion carried.

____________________________________

Donald H. Frese, Chairman

ATTEST:

_____________________________________

Gina Edler, Benton County Deputy Auditor