MINUTES OF THE FORMAL MEETING OF THE JOHNSON COUNTY BOARD OF SUPERVISORS:
MARCH 3, 2011
Chairperson Harney called the Johnson County Board of Supervisors to order in the Johnson County Administration Building at 9:00 a.m. Members present were: Pat Harney, Terrence Neuzil, Janelle Rettig, Sally Stutsman, and Rod Sullivan.
Unless otherwise noted, all actions were taken unanimously.
Motion by Stutsman, second by Sullivan, to approve the claims on the Auditor’s Claim Register, as approved by a majority of the Supervisors.
Motion by Rettig, second by Neuzil, to approve the minutes of the formal meeting of February 24, 2011.
Motion by Stutsman, second by Sullivan, to approve the payroll authorizations submitted by department heads, as approved by a majority of the Supervisors.
Motion by Neuzil, second by Rettig, to accept the Recorder’s Report of Fees Collected for the month of January, 2011, in the amount of $135,689.47 as submitted by County Recorder Kim Painter.
Motion by Stutsman, second by Sullivan, to appoint Anne Troyer as Washington Township Trustee.
RESOLUTION 03-03-11-01
APPROVING AND AUTHORIZING A LOAN AGREEMENT AND PROVIDING FOR THE ISSUANCE OF A $6,285,000 GENERAL OBLIGATION COUNTY PURPOSE AND REFUNDING NOTE AND PROVIDING FOR THE LEVY OF TAXES TO PAY THE SAME
Whereas, the Board of Supervisors (the “Board”) of Johnson County, Iowa (the “County”), pursuant to a resolution of the Board adopted on November 25, 2008 (the “2008 Note Resolution”), previously issued its $3,295,000 General Obligation County Purpose Note, Series 2008B, dated December 1, 2008 (the “2008 Note”), a portion of the principal of which remains outstanding; and
Whereas, pursuant to the 2008 Note Resolution, the Board reserved the right to call principal of the 2008 Note maturing on or after June 1, 2010 (the “2008 Note Balance”), on any date on or after June 1, 2009, for early redemption; and
Whereas, the Board has heretofore proposed to enter into a loan agreement (the “Refunding Loan Agreement”) in the principal amount of $1,985,000, pursuant to the provisions of Section 331.402 of the Code of Iowa, for the purpose of paying the cost, to that extent, of refunding the 2008 Note Balance, and has published notice of the proposed action and has held a hearing thereon on February 24, 2011; and
Whereas, also pursuant to the provisions of Section 331.402 of the Code of Iowa, the Board has heretofore proposed to contract indebtedness and enter into a loan agreement in a principal amount not to exceed $600,000 to provide funds to pay the cost, to that extent, of constructing an ambulance facility (the “Ambulance Facility Loan Agreement”), and has published notice of the proposed action and has held a hearing thereon on March 11, 2010; and
Whereas, also pursuant to the provisions of Section 331.402 of the Code of Iowa, the Board has heretofore proposed to contract indebtedness and enter into a loan agreement in a principal amount not to exceed $1,200,000 to provide funds to pay the cost, to that extent, of acquiring land suitable for the site of a new County Jail (the “County Jail Site Loan Agreement”), and has published notice of the proposed action and has held a hearing thereon on March 11, 2010; and
Whereas, also pursuant to the provisions of Section 331.402 of the Code of Iowa, the Board has heretofore proposed to contract indebtedness and enter into a loan agreement in a principal amount not to exceed $2,300,000 to provide funds to pay the cost, to that extent, of constructing improvements to a county road that will assist in economic development which creates jobs and wealth, by reconstructing a portion of 120th Street in and adjacent to the City of Shueyville (the “County Road Loan Agreement”), and has published notice of the proposed action and has held a hearing thereon on March 11, 2010; and
Whereas, the Board has also been authorized pursuant to an election legally called and held in the County on November 4, 2008, to issue not to exceed $20,000,000 General Obligation Conservation Bonds (the “Conservation Bonds”) for the purpose of acquiring and developing lands with public access provided, to be managed by the Johnson County Conservation Board, in order to protect the water quality in rivers, lakes and streams; protect forests to improve air quality; protect natural areas and wildlife habitat from development, and provide for parks and trails; and the Board previously deemed it necessary and advisable to provide for the levy and collection of taxes to pay the principal of and interest on the Conservation Bonds in the amount of $1,000,000 for the fiscal year beginning July 1, 2009; and
Whereas, the County intends to combine the Refunding Loan Agreement, the Ambulance Facility Loan Agreement, the County Jail Site Loan Agreement and the County Road Loan Agreement and funding for a recreation trail into a single loan agreement (the “Loan Agreement”); and
Whereas, it is necessary at this time to authorize and approve the Loan Agreement and to make provision for the issuance of a General Obligation County Purpose and Refunding Note in the principal amount of $6,285,000 (the “Note”) in evidence of the County’s obligation under the Loan Agreement;
Now, Therefore, Be It Resolved by the Board of Supervisors of Johnson County, Iowa, as follows:
Section 1. The Refunding Loan Agreement, the Ambulance Facility Loan Agreement, the County Jail Site Loan Agreement, the County Road Loan Agreement and funding for a recreation trail are hereby combined into a single loan agreement (the “Loan Agreement”).
Section 2. The County hereby determines to enter into the Loan Agreement with Hills Bank and Trust Company, Iowa City, Iowa, as purchaser (the “Purchaser”), in substantially the form as has been placed on file with the Board, providing for a loan to the County in the principal amount of $6,285,000 for the purpose or purposes 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 3. The Note is hereby authorized to be issued in the principal amount of $6,285,000, and shall be dated as of the date of its delivery to the Purchaser (anticipated to be March 8, 2011) and shall be payable as to both principal and interest in the manner hereinafter specified.
The County Treasurer 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 installments due in each of the years and in the respective amounts and shall bear interest at the respective rates, as follows:
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Date |
Interest Rate Per Annum |
Principal Installment |
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April 1, 2011 |
0.75% |
$1,000,000 |
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June 1, 2011 |
0.75% |
$2,428,000 |
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June 1, 2012 |
0.88% |
$1,451,000 |
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June 1, 2013 |
1.13% |
$911,000 |
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June 1, 2014 |
1.43% |
$155,000 |
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June 1, 2015 |
1.76% |
$165,000 |
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June 1, 2016 |
2.09% |
$175,000 |
Accrued interest on the Note shall be payable semiannually on the first day of June and December, commencing June 1, 2011. 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 County hereby pledges the faith, credit, revenues and resources and all of the real and personal property of the County for the full and prompt payment of the principal of and interest on the Note.
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 have the County’s seal impressed or printed thereon 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 4. The Note shall be in substantially the following form:
(Form of Note)
UNITED STATES OF AMERICA
STATE OF IOWA
JOHNSON COUNTY
GENERAL OBLIGATION COUNTY PURPOSE AND REFUNDING NOTE
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$6,285,000 |
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MATURITY DATE |
NOTE DATE |
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June 1, 2016 |
March 8, 2011 |
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Johnson County (the “County”), Iowa, for value received, promises to pay in the manner hereinafter provided to
Hills Bank and Trust Company
Iowa City, Iowa
or registered assigns, the principal sum of SIX MILLION TWO HUNDRED EIGHTY-FIVE THOUSAND 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.
Interest on this Note is payable semiannually on June 1 and December 1 of each year, commencing June 1, 2011. Principal of this Note is payable in installments in each of the respective years and in the respective installment amounts and bears interest at the respective rates, as follows:
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Date |
Interest Rate Per Annum |
Principal Installment |
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April 1, 2011 |
0.75% |
$1,000,000 |
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June 1, 2011 |
0.75% |
$2,428,000 |
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June 1, 2012 |
0.88% |
$1,451,000 |
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June 1, 2013 |
1.13% |
$911,000 |
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June 1, 2014 |
1.43% |
$155,000 |
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June 1, 2015 |
1.76% |
$165,000 |
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June 1, 2016 |
2.09% |
$175,000 |
Interest will 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 Treasurer, Iowa City, Iowa (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 March 8, 2011 (the “Loan Agreement”) entered into by the County for the purpose of providing funds to pay the cost, to that extent, of constructing an ambulance facility; acquiring land suitable for the site of a new County Jail; constructing improvements to a county road that will assist in economic development which creates jobs and wealth, by reconstructing a portion of 120th Street in and adjacent to the City of Shueyville; funding for a recreation trail and refunding the outstanding balance of the County’s General Obligation County Purpose Note, Series 2008B, dated December 1, 2008.
This Note is issued pursuant to and in strict compliance with the provisions of Chapters 76 and 331 of the Code of Iowa, 2011, 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; that the faith, credit, revenues and resources and all the real and personal property of the County are irrevocably pledged for the prompt payment hereof, both principal and interest; and that the total indebtedness of the County, including this Note, does not exceed any constitutional or statutory limitations.
IN TESTIMONY WHEREOF, Johnson County, Iowa, by its Board of Supervisors, has caused this Note to be sealed with its official seal, to be executed by its Chairperson and attested by its County Auditor, on the 8th day of March, 2011.
JOHNSON COUNTY, IOWA
By _(DO NOT SIGN)_______________
Chairperson, Board of Supervisors
Attest:
(DO NOT SIGN)_______________
County Auditor
(Seal)
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:
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TEN COM |
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as tenants in common |
UTMA _____________________________ |
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(Custodian) |
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TEN ENT |
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as tenants by the entireties |
As Custodian for _____________________ |
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JT TEN |
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as joint tenants with right |
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(Minor) |
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under Uniform Transfers to Minors Act |
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___________________________________ |
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(State) |
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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 5. 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 Purchaser, 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 6. The County Treasurer, as Registrar and Paying Agent for the 2008 Note, is hereby authorized to take all action necessary to call the Callable 2008 Note for redemption on June 1, 2011 (the “Redemption Date”), and is further authorized and directed to give notice of such redemption by sending notice to each of the registered owners of the Callable 2008 Note to be redeemed at the addresses shown on the County’s registration books, not less than 30 days prior to the Redemption Date.
Section 7. 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, 2011,
sufficient to produce the net annual sum of $1,482,842;
For collection in the fiscal year beginning July 1, 2012,
sufficient to produce the net annual sum of $930,073;
For collection in the fiscal year beginning July 1, 2013,
sufficient to produce the net annual sum of $163,778;
For collection in the fiscal year beginning July 1, 2014,
sufficient to produce the net annual sum of $171,562;
For collection in the fiscal year beginning July 1, 2015,
sufficient to produce the net annual sum of $178,658.
Section 8. A certified copy of this resolution shall be filed with the County Auditor, and the Auditor shall be and 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 9. 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 10. 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 11. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
Motion by Stutsman, second by Rettig to approve Resolution 03-03-11-01.
Motion by Sullivan, second by Neuzil, to approve and authorize the Chairperson to sign the adoption of the current County Emergency Operations Plan (Disaster Plan/Multi Hazard Plan). Aye: Harney, Neuzil, Rettig, Sullivan; abstain: Stutsman.
Motion by Stutsman, second by Sullivan, to approve and authorize the Chairperson to sign a letter to the Iowa Finance Authority supporting the application for Low Income Housing Tax Credits to be submitted by Corridor Woods Limited Partnership for Mackinaw Village and White Pine Estates in Iowa City and North Liberty.
Motion by Neuzil, second by Stutsman, to approve and authorize the Chairperson to sign the Sheriff’s contract for the provision of law enforcement services to the town of Swisher from February 1, 2011 until July 1, 2011 for $35.00 per hour, for a total of up to $45,500.00.
Motion by Stutsman, second by Rettig, to approve the amended job description for SEATS Maintenance Coordinator.
Motion by Stutsman, second by Sullivan, to approve and authorize the Chairperson to sign a contract with the State Historical Society of Iowa for a Certified Local Government Grant Project in the amount of $4,000 to support the nomination of the Ranshaw House (North Liberty) to the National Register of Historic Places.
Motion by Sullivan, second by Stutsman, to approve and authorize the Chairperson to sign the Iowa Certified Local Government 2010 Annual Report of the Johnson County Historic Preservation Commission.
Motion by Stutsman, second by Sullivan, to set a bid letting date of March 29, 2011 at 9:00 a.m. for the 2011 Johnson County Dust Control Safety Program (calcium chloride application to portions of Johnson County rock surfaced roads) and authorize the Auditor’s Office to publish the Notice to Bidders.
Motion by Neuzil, second by Rettig, to set a bid letting date of March 29, 2011 at 9:00 a.m. for the 2011 Johnson County Seed and Fertilizer Program (various locations) and authorize the Auditor’s Office to publish the Notice to Bidders.
Motion by Stutsman, second by Sullivan, to set a bid letting date of March 29, 2011 at 9:00 a.m. for the 2011 Johnson County Bituminous Resurfacing Program (various locations) and authorize the Auditor’s Office to publish the Notice to Bidders.
Motion by Sullivan, second by Stutsman, to deny the requests for waiver of penalties for late payment of taxes for parcel 1017284012 in the amount of $108.00 for 2325 Willowbrooke Lane, and parcel 1020204027 in the amount of $106.00 for 1940 Plaen View Drive.
Adjourned to Informal Meeting at 9:22 a.m.
/s/Pat Harney, Chair, Board of Supervisors
Attest: Tom Slockett, Auditor
By Nancy Tomkovicz, Recording Secretary
These minutes were sent for formal approval and publication on March 10, 2011.