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HomeMy WebLinkAbout2008-01-21-Resolutions 08-18_Public Energy Finance Authority - 28E AgrTHE CITY OF WAUKEE,IOWA RESOLUTION 08-18 APPROVING ENTRY INTO AN AGREEMENT UNDER IOWA CODE CHAPTER 28E TO ESTABLISH AN AGENCY TO BE KNOWN AS THE PUBLIC ENERGY FINANCING AUTHORITY,AN IOWA JOINT POWERS AGENCY,AND AUTHORIZING EXECUTION OF THE AGREEMENT ESTABLISHING SAID AGENCY IN nIE NAME AND BY THE A UTHORITY OF THE CITY OF WA UKEE,IOWA WHEREAS,the City of Waukee,Iowa is a duly organized municipality within Dallas County; AND, WHEREAS,the Waukee City Council has concluded after consideration and investigation by staff that it is in the best interest of the utility to enter into an agreement under Iowa Code Chapter 28E to pursue the acquisition of energy,including as needed electric energy,natural gas, fuel oil,diesel fuel,propane,gasoling,other hydrocaulous and provide for the transportation, transmission,distribution or storage related to such forms of energy,or to assist in such procurement provision for the benefit of the utility; NOW THEREFORE BE IT RESOLVED by the City Council of Waukee,that: Section One:The proposed "AGREEMENT ESTABLISHING THE PUBLIC ENERGY FINANCING AUTHORITY,AN IOWA JOINT POWERS AGENCY,UNDER IOWA CODE CHAPTER 28E,"dated as of September 1,2007 attached hereto as Exhibit A (the "Agreement") is hereby approved contingent upon changes consistent with the recommendation of the City Attorney,and the City of Waukee hereby agrees to be bound by the terms of said Agreement. Section Two:The Mayor and City Clerk are hereby authorized to execute said Agreement on behalf of the City of Waukee. Section Three:Said Agreement,once executed by all parties,shall be effective upon filing with the Secretary of State.The City Clerk of Waukee is directed to coordinate said filing and recordings with the other executing Members. PASSED AND APPROVED this 21 st day ofJanuary,2008. Attest: .\:ooistra,City Administrator/Clerk ROLL CALL VOTE AYE NAY ABSENT ABSTAIN Donald L.Bailey,Jr.X '1CaseyL.Harvey X C.Isaiah McGee X Darlene Stanton X Mike Watts X .I AGREEMENT ESTABLISillNG THE PUBLIC ENERGY FINANCING AUTHORITY, AN IOWA JOINT POWERS AGENCY, UNDER IOWA CODE CHAPTER 28E (Dated as of September 1,2007) BE IT REMEMBERED for the mutual promises,covenants and considerations herein contained,the City of Sanborn,Iowa;Emmetsburg Municipal Utilities,a city utility of the City of Emmetsburg,Iowa;Manning Municipal Gas Department,a city utility of the City of Manning,Iowa;Coon Rapids Municipal Utilities,a city utility of the City of Coon Rapids,Iowa;and Manilla Municipal Utilities,a city utility of the City of Manilla, Iowa (together,the "Initial Members")have entered into the following Agreement Establishing The Public Energy Financing Authority,dated as of September 1,2007 (the "Agreement")under Iowa Code chapter 28E (the "Joint Powers Act")to wit: Article One.The organization herein created is a separate legal entity,a body corporate and politic which shall be known as the Public Energy Financing Authority,an Iowa Joint Powers Agency (hereinafter the "Agency"), Article Two,The purposes of the Agency are to acquire and procure energy resources,or the rights to acquire thereto,including in particular natural gas and electric energy,and to provide for the transportation,transmission,distribution,sale and/or storage thereof in and to each Members'service area to assist in the provision thereof for the benefit of the public entities which are or become Members of the Agency, Article Three.The Agency shall have the power (A)to sue and be sued;(B)to make and enter into contracts (including without limitation prepaid energy purchase agreements, energy supply agreements,energy remarketing agreements,energy price management and exchange agreements and interest rate management and exchange agreements providing for payments based on levels of,01'changes or differences in,interest rates or energy or natural gas prices,agreements to exchange cash flows 01'payments,and agreements for credit enhancement and liquidity support in connection with such contracts);(C)to hire agents,consultants,underwriters,trustees,contractors,attorneys and employees;(D)to acquire,construct,maintain and operate (or to provide for the construction,maintenance and operation of)any buildings,works 01'improvements; (E)to acquire,hold or dispose of property,by purchase,lease 01'otherwise,whether real 01'personal,tangible or intangible,wherever iocated;(F)to incur debts,liabilities or other financial obligations,to issue bonds,notes and other obligations for borrowed money ("Bonds"),and to pledge any property (whether real or personal,tangible or intangible) or revenues 01'both as security for such Bonds;and (G)to receive gifts,contributions and donations of property,funds,services and other forms of assistance from persons,firms, corporations and any governmental entity,In addition,the Agency shall have all powers -1- conferred by Iowa Code chapters 28B,28F,384,and 476A (2007),as supplemented and amended from time to time,and any successor statutes. Article Four.The Board of Directors (the "Board")shall initially consist of five people (the "Initial Directors"),each of whom shall be appointed by each Initial Member.Initial Directors shall be for a term of either four (4)or five (5)years,to be established by lot at the first meeting of the Board.The election of subsequent Boards,the manner of election,size of the Board,and tenure of Board members shall be as established in the Bylaws. Article Five.The Board shall adopt Bylaws consistent with tills Agreement.The Bylaws shall provide for officers of the Agency.The Bylaws shall provide for the periodic meeting of the Board and may provide for an executive committee which may act on behalf of the Agency between meetings of the Board.The Agency=s fiscal year shall be set in its Bylaws.The Board may,by resolution,designate two or more of its representatives to constitute a committee.Such committee shall,if authorized by resolution of the Board,provide advice and recommendations to the Board.The designation of such committee shall riot operate to relieve the Board of any responsibility imposed by this Agreement.Meetings of such committees may be held at such time and place as the committee members may fix from time to time. Article Six.Except as otherwise provided in this Agreement,all powers of the Agency are vested in the Board. Article Seven.The Board may employ an executive director for the Agency and provide for direct employment of such other persons as are deemed necessary or prudent,and shall have the power to engage the services of independent contractors,including attorneys,engineers,financial and other technical consultants and such other persons or entities as it may deem prudent or necessary. Article Eight.The Board shall control the finances of the Agency and may expend or invest funds of the Agency as it deems necessary to accomplish the purposes of the Agency,provided,however,that all funds shall be invested in accord with Iowa Code sections 12B.I0 and 12B.lOA through 12B.10C (2007),as supplemented and amended from time to time,or any successor statutes. The Agency may borrow money and issue Bonds as provided by law,and as herein limited.In the event the Agency shall issue Bonds,such obligations shall be limited special obligations of the Agency ("Special Obligations")only and such Special Obligations including the principal,redemption price and purchase price (to the extent payable by the Agency upon tender for purchase in accordance with the provisions of the financing documents authorizing issuance thereof,or any loan agreement,trust agreement or other agreements required thereby (hereinafter,the "Financing Documents")and the -2- interest thereon,shall be special obligations of the Agency payable solely from,and secured solely by,the revenues,funds and other assets pledged therefore under the applicable Financing Documents and shall not constitute a charge against the general credit or other funds of the Agency or the Members. The Special Obligations shall not be secured by a legal or equitable pledge of,or lien or charge upon or security interest in,any property of the Agency or its Members or any of its income or receipts except the property,income and receipts pledged therefore under the applicable Financing Documents.Neither the faith and credit nor the taxing power of the State of Iowa'(the "State"),any Member or any other public agency shall be pledged to the payment of the principal,redemption price or purchase price of,or the interest on, the Special Obligations.The issuance of the Special Obligations shall not directly, indirectly or contingently obligate the State,or any Member,to levy or pledge any form of taxation or to make any appropriation for the payment of the Special Obligations.The payment of the principal,redemption price or purchase price of,or interest on,the Special Obligations shall not constitnte a debt,liability or obligation of the State or any public agency,including any Member (other than the obligation of the Agency as provided in the applicable Financing Documents). Atticle Nine.The Board shall establish the fiscal year for the Agency and shall annually adopt abudget prior to the start of the Agency=s fiscal year.The bndget shall provide for such contributions from Member.as may be deemed necessary.A copy of a proposed budget shall be forwarded to each Member at least 30 days before adoption.A copy of the budget as adopted shall be sent to each Member within.3 0 days after adoption. Article Ten.The Agency shall hold all real,personal and intangible property which it acquires in its own name.The Agency may acquire such property as it needs to accomplish its public purposes by sale,exchange or otherwise.The Agency may also acquire real property by use of the power of eminent domain and is authorized to bring an action in eminent domain for a public purpose in its own name or may request a Member to bring such action,which the Member shall then do,but the Agency shall fully reimburse the Member for all costs of acquisition including not only damages to be paid the owner but all administrative and related costs incurred by the Member to complete the acquisition.The Agency may dispose of any of its property in the same manner as a city. All proceeds from the sale or disposition of property is property of the Agency.The Agency may accept contributions in any form. The Agency may administer contracts and may take assignments of contract rights from Members or other public or private entities upon such terms and conditions as the Board may deem proper or in the best interest of the Agency. The Board shall establish and maintain appropriate funds and accounts for the purposes set forth in this Agreement to the extent necessary or desirable,including but not limited -3- to separate accounts for operation and maintenance,administrative expenses,debt service on bonds and any refunding bonds and reserves for working capital.All funds held by the Board shall be accounted for,managed and invested in compliance with Iowa law, including but not limited to Chapters 12B and l2C of the Iowa Code,as supplemented and amended. Each year the receipts,expenditures and allocation of expenses for the operation of the Agency shall be audited by the independent auditing firm engaged by or on behalf of the Board for that year to conduct the audit of the Agency.Such audit shall be conducted in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Govermnent Auditing Standards,issued by the Comptroller General of the United States and Chapter 11 of the Iowa Code.Following the receipt of the audit report,the Board shall deliver a copy of the same to the Members and shaIl schedule a meeting of the Board for the purpose of having representatives of the independent auditing firm submit an oral presentation of the audit and answer questions as may be posed to them by the Board. MucIe E1eyen.This Agreement shall become effective upon execution and approval of all the Initial Members and when filed as required by law and shall continue in fuIl force and effect far a period of sixty (60)years from such date,or until such earlier time as it is terminated by a writing signed by all the Members;provided,however,that, notwithstanding the foregoing,this Agreement shaIl not expire 01'be terminated until the date on which:(i)all Bonds issued by the Agency shall have been paid or deemed paid in accordance with the applicable Financing Documents;(ii)all contracts and agreements of the Agency (a)shaIl have expired or been otherwise terminated and all amounts owed by the Agency thereunder have been paid or (b)the Agency's obligations thereunder have been transferred or assigned to another party in accordance with the terms of such contracts and agreements;and (iii)all other indebtedness and liabilities incurred by the Agency shall have been paid. Article Twelve.At the end of the term hereof or upon the earlier termination of this Agreement as provided herein,after payment of all expenses and liabilities of the Agency,all property of the Agency both real and personal shall be distributed as directed by the Board;provided,however,that any surplus money on hand shaIl be returned in proportion to the contributions made by the Members and if no contributions have been made in proportion to the payments made by each of the Members to or for the account of the Agency in connection with its projects and programs,including without limitation payments with respect to Bonds and any other agreements or obligations of the Agency. Article Thirteen.As a means of achieving the purposes of the Agency,the Board is authorized to issue its Special Obligations under the authority of Chapter 28E of the Iowa Code,as supplemented and amended,or as otherwise may be authorized by law from time to time for the purposes set forth in this Agreement. -4- The Board also is authorized,in its sole discretion,to utilize other available funds,not otherwise obligated or previously appropriated for another purpose,(i)to pay all or any portion of the costs associated with the acquisition of natural gas or other energy sources, In lieu of issuing Special Obligations for the same under this Agreement,and (ii)for the purpose of advancing,on a temporary basis,all or any portion of the Costs associated with the acquisition of natural gas or other energy sources,with the intent of reimbursing such advanced funds with a subsequent issuance of Special Obligations. By their approval and execution of this Agreement,the Members hereby consent to and authorize the Board,pursuant to Section 28B of the Iowa Code,as supplemented and amended,to issue Special Obligations from time to time in aggregate principal amount as determined by the Board for the purposes set forth in this Agreement.The Members further consent to and agree that such Special Obligations may be issued and sold by the Board in multiple series,at such times and from time to time over a period of years,in such amounts,to such purchasers and for such purposes,by either public or private sale, at fixed or variable rates of interest as shall be prevailing at the time of issuance of the Special Obligations,with such covenants and terms and in such form and manner as the Board shall determine to be appropriate,in its sole discretion,and in accordance with an offering schedule to be approved by the Board. In addition to the Special Obligations authorized herein,the Members hereby consent to and authorize the Board,pursuant to Section 28B of the Iowa Code,as supplemented and amended,to issue refunding obligations for the purpose of refunding or refinancing any of the Special Obligations during the term of this Agreement.Such refunding obligations may be issued and sold by the Board in multiple series,at such times and from time to time over a period of years,in such amounts,to suoh purchasers by either public or private sale,at such rates of interest as shall be prevailing at the time of issuance of the refunding obligations,with such covenants and terms and for the purpose ofrefunding or refinancing such series of Special Obligations as the Board shall determine to be appropriate. To the extent permitted by law,the Board is authorized to and may enter into,amend or terminate,as it determines to be necessary or appropriate contracts for the benefit of the Agency or for the holders of any Special Obligations or refunding obligations to facilitate the issuance,sale,resale,purchase,repurchase or payment of any of the Special Obligations or refunding obligations,including without limitation bond insurance,letters of credit and liquidity facilities. The principal of and interest on all Special Obligations and refunding obligations issued under this Agreement shall be payable solely from and secured by the net revenues of the Agency pledged thereto and from other funds of the Agency lawfully available therefore, and the Special Obligations and refunding obligations shall not in any respect be general -5- obligations of the Members,nor shall the Members be in any manner liable by reason of such net revenues or other funds being insufficient to pay the Special Obligations and refunding obligations. The Members further agree that no Member may withdraw or in any way terminate, amend or modify in any way its obligations under this Agreement to the detriment of the holders of the Special Obligations and refunding obligations while any of the Speclal Obligations and refunding obligations are outstanding and unpaid. The provisions of this Article are intended and shall be construed as to fully invoke the provisions of Chapter 28E of the Iowa Code,as supplemented and amended,with respect to the issuance of the Special Obligations and refunding obligations by the Board as described herein,and to reflect the full authorization,consent and agreement of the Members to the issuance of the Special Obligations and refunding obligations on the terms,at the times,in tile amounts and for the purposes set forth in this Agreement Article Fourteen.The Agency shall hold all licenses and certificates necessary to its purposes in its own name or through affiliated entities formed by the Agency for specified purposes. Article Fifteen.Additional Members may join or be added to the Agency.Any oily,city utility,or organization composed of cities'or city utilities or other public entities organized under the laws of any state,may,to the extent permitted by applicable law, adopt this Agreement (as amended,if amended)as provided by law and become a Member of the Agency.Any such joinder shall be subject to the prior approval of the Board.Furthermore,any such joinder shall be accomplished by a supplement to this Agreement between the Agency and the new Member and such supplement shall be in a form approved by the Board.Subject to the Agency's Bylaws,all Members,Initial or additional,shall have the same rights and obligations hereunder. Alticle Sixteen.This Agreement may be amended by the agreement of all Members. Article Seventeen.Any Member m"y withdraw from the Agency,provided,that no such withdrawal shall be permitted if it would result in the dissolution of the Agency for so long as any Special Obligations remain outstanding;and provided further,that no Member will be permitted to withdraw at a time when Special Obligations are outstanding unless said Member pays or provides for the payment of its pro-rata share;if any,of the principal and interest coming due under such Special Obligations then outstanding.Any such withdrawal shall oniy be effective following the receipt by the Agency of such notice of withdrawal in writing.The Agency shall file such notice of withdrawal from this Agreement as an amendment hereto,and such amendment and withdrawal shall be effective upon such filing. -6- Altic1e Eighteen.The Agency shall at all times during the term of this Agreement maintain comprehensive general liability and automobile liability insurance policies with policy Iimits of not less than $1,000,000 to provide protection for the Agency and the Members. Such policies shall name each Party and its officials,directors,officers,employees, contractors and agents as additional insured and will be considered primary pursuant to or incidental to this Agreement.Such policies shall include a cross-liability or severability of interest provision.Upon the request of any Party,the Agency shall provide certificates of insurance to such Party to the effect that at least the minimum coverage stated above are in effect and shall identify the insurance policies providing such coverage. illude Nineteen.This Agreement may be amended by the mutual agreement of all Members as provided by law. Article Twenty.If any one or more of the terms,provisions,promises,covenants or conditions of this Agreement shall to any extent be adjudged invalid,unenforceable,void or voidable for any reason whatsoever by a court of competent jurisdiction,each and all of the remaining terms,provisions,promises,covenants and conditions of this Agreement shall not be affected thereby,and shall be valid and enforceable to the fullest extent permitted by law. Altic1e Twenty-One.No official,director,officer,contractor,agent or employee of the Agency,past,present or future,shall be individually or personally liable for the observance or performance of any of the terms,conditions or provisions hereof or for any claims,losses,damages,costs,injury and liability of any kind,nature 01'description arising from.the actions of the Agency or the actions undertaken pursuant to this Agreement;provided,however,that nothing herem shall relieve any such person from the performance of any official duty provided hereby or by applicable provision of law. All of the privileges and immunities from liabilities,exemptions from laws,ordinances and rules,all pension,relief,disability,workers'compensation,and other benefits which apply to the activity of officers,agents,employees or other representatives of a Member when performing their respective functions within the territorial limits of their public agency,shall apply to them to the same degree and extent while engaged as a Director, officer,agent,employee or other representative of the Agency 01'while engaged in the performance of any of their functions or duties under the provisions of this Agreement whether within 01'outside of the boundaries of the applicable Member. Article Twenty-Two.This Agreement is the complete and exclusive statement of the agreement between the Members with respect to the subject matter hereof,and this Agreement supersedes and merges all prior proposals,understandings,and other -7- agreements,whether oral,written,or implied in conduct,between the Members relating to the subject matte!"of this Agreement. Article Twenty-Three.This Agreement is made and shan be construed in accord with the law of the State ofIowa. Atticle Twenty-Four.Each Initial Member represents,warrants and agrees that it (i)is a "public agency"as that term is defined in Section 28E.2 of the Joint Powers Act,(ii) owns and operates either or both a municipal natural gas distribution utility andlor a municipal electric utility,and (iii)is authorized to purchase and sell natural gas andlor electricity for use in connection with its natural gas and/or electric utility systems. Article Twenty-Five.This Agreement is an amendment and restatement of the Agreement Establishing The Iowa Public Energy Agency Under Iowa Code Chapter 28B (the "Original Agreement"),and is intended to provide for the continuation and expansion of the joint project commenced under the Original Agreement.The Original Agreement shall terminate and be of no further force or effect following the filing of this Agreement with the Secretary of State of the State of Iowa, -8- 1 j Ctl~~OF;SA:lNJm~~tl'Jlrl~l!Ctnm1y.llJwn.I""~e~~fi't.-P2..'....~ffi1fu)(J>ll~ :;~.._...-I .,'""_.-' tWe»t;...~~~.~d ..,tl&wPk4t2-.~-j ..,(li.':ll!llllt\~)..·TLtM ..@i!(UJ [, ! 1!I l I 4~. 1 ·¥- .1:1- ITlh (11((cr -.... BYLAWS OF PUBLIC ENERGY FINANCING AUTHORITY, AN IOWA JOINT POWERS AGENCY ARTICLE I. Purposes The Public Energy Financing Authority,an Iowa Joint Powers Agency (the "Agency") will have the purposes stated in the Agreement Establishing the Pnblic Energy Financing Authority Under Iowa Code Chapter 28E,dated as of September 1,2007. The Agency'.principal office will be:Manning Municipal Utilities,715 Third Street, Manning,Iowa 51455. ARTlCLETI. Limitation on Powers The Agency shall be subject to the following limitations: a.The Agency shall engage only in activities that are expressly authorized by the Agreement by which it was created. b.No Members of the Agency shall be liable for the indebtedness of any oilier Member,nor liable for any amount for any purpose in excess of the assessments made against that Member. ARTICLE III Membership SECTION 3.1.Requirements for Membership.Any city,city utility,or organization composed of cities or city utilities or other public entity,in each case which provides either natural gas distribution or electric utility services,whether organized under the laws of this or any other state as allowed by Iowa law may become a Member,by: a.Making a written application for membership therein; b.Adopting and agreeing to comply with and be bound by the Agreement Bstablishing the Public Energy Financing Authority,dated as of September 1,2007 (the "Agreement")under Iowa Code Chapter 28E (the "Act")and Bylaws of the Agency; e.Paying the fees,rates and charges established by the Board of Directors (the "BoardU );and d.Acceptance by the Board. SECTION 3.2.Membership Certificates,Membership in the Agency shall be evidenced by a membership certificate which shall be in such form and shall contain such provisions as shall be determined by the Board.Such certificate shall be signed by the President and by the Secretary of the Agency. ARTICLE IV Meetings of Membe~s SECTION 4,1.Annual Meeting.An annual meeting of the Members shall be held each year,beginning with the year 2007,at such place in the State of Iowa,as shall be designated in the notice of the meeting,for the PUl"pose of electing Directors,passing upon reports for the previous fiscal year and transacting such other business as may come before the meeting.It shall be the responsibility of the Board to make adequate plans and preparations for the annual meeting.Failure to hold the annual meeting at the designated time shall not work a forfeiture or dissolution of the Agency. SECTION 4.2.Special Meetings.Special meetings of the Members may be called by resolution of the Board,or upon written request signed by twenty percent (20%)or more of all the Members,and it shall thereupon be the duty of the Secretary to cause notice of such meeting to be given as hereinafter provided.Special meetings of the Members may be held at any place in the State ofIowa specified in the notice of the special meeting, SECTION 4.3.Notice of Members'Meeting.Written or printed notice stating the place, day and hour of the meeting and,in case of a special meeting or an annual meeting at which business requiring special notice is to be transacted,the purpose or purposes for which the meeting is called,shall be delivered not less than ten days nor more than twenty-five days before the date of the meeting,either personally or by mail,by 01'at the direction ofthe Secretary of the Agency,or upon the Secretary's failure to do so,by any Trustee or any Member,to each Member.If mailed,such notice shall be deemed to be delivered when deposited in the United States mail,addressed to the Member at his address as it appears on the records of the Agency, with postage thereon prepaid.The special meeting of'the Members shall not invalidate any action which may be taken by the Members at any such meeting. SECTION 4.4..Authorized Representative.At all meetings of the Members,each Member shall be represented by its representative dnly authorized in writing.Each such representative sball be appointed and may be removed by the governing body of the city utility as provided from time to time by the laws oflowa. SECTION 4.5.Quorum.A majority of the Members shall constitute a quorum. SECTION 4.6,Voting.Except as to the election of'Direotors as provided in Article V hereof,each Member which has or is participating in a completed or proposed natural gas or electric purchase and sale transaction shall have one vote;provided,that Members which bave participated in a completed transaction shall have such additional votes as shall be equal to the Page 2 oflO present value of their participation,divided by $100,000,000,rounded up to the nearest whole number. SECTION 4.7.Proxies;Mail Voting;Electronic Meetings.Voting by written proxy 01' by mail shall not be permitted.However,the Agency may conduct meetings by electronic means in accordance with Iowa law. SECTION 4.8.Order of Business,The order of business at the annual meeting of Members and,so far as possible,at all other meetings of the Members,shall generally be essentially as follows: a.Report on the Members which are represented (by representatives duly authorized in writing)in order to determine the existence of a quorum, b.Reading of the notice of the meeting and proof of the due publication or mailing thereof,or the waiver or waivers of notice of tho meeting,as the case may be. c.Reading of unapproved minutes of previous meetings of the members and the taking of necessary action thereon, d.Presentation and consideration of reports of officers,Directors and committees. e.Nomination and election of Directors. f.Unfinished business. g.New business. h.Adjournment. ARTICLE V Directors;Officers;Meetings;Reports SECTION 5.1.Board of Directors. (1)Members. The governing body of the Agency shall he the Board of Directors,comprised of 5 directors.The initial Board of Directors will consist of five people (the "Initial Directors"),each of whom sha11be appointed by each Initial Member (as defined in the Agreement).The Board sball be the administering authority oftbis Agreement and,as such,shall be vested witb all the powers of the Agency to execute,administer,and amend this Agreement,in accordance with the purposes set forth herein.The Initial Directors shall consist of four (4)and five (5)years terms, respectively,to be determined by lot at the first meeting of the Initial Directors.Two four (4) year terms and three five (5)year terms shall be filled by the Initial Members.The Board shall create the process from time to time for election of future Board members and Officers in the sole discretion of the Board. Page 3 er io (2)No Compensation. Directors shall not receive any compensation for serving as Directors hut shall be entitled to reimbursement for any expenses actually incurred in connection with serving as a Director if the Board shall determine that such expellSOBshall be reimbursed and there are unencumbered funds available for such purpose. SECTION 5.2.Officers;Duties;Official Bond. (1)Officers. The Initial Directors shalI elect a Chair,Vice Chair,Secretary,Treasurer,and Executive Director,and any other officers of the Agency by majority vote of the Board.The Executive Director may nor may not,as determined by the Board,be required to be a representative of the legislative body of a Member.The Chair and the Vice Chair,and any other officer or Board member of the Agency,authorized by Board resolution,ill authorized to execute any and all bonds,contracts,agreements,instruments and other documents on hehalf of,and in the name of, the Agency.The Secretary shall attest to the signature of an officer on any such bond,contract, agreement,instrument aud other document when required to do so by Board resolution and shalI perform the normal duties of the secretary of an organization such as the Agency,including maintaining custody of the records of the Board and the Agency.The Executive Director shall he the chief executive officer of the Agency and as such shall implement the policy decisions and the directives of the Board.The Chair,Vice Chair,Treasurer,Executive Director and Secretary shall have such other powers,duties and responsibilities as shsll he determined by the Board. (2)Treasurer. The Treasurer shall serve as both treasurer and auditor of the Agency.Subject to the provisions of each Financing Document (as defined in the Agreement)providing for a trustee or other fiscal agent,the Treasurer is designated as the depositary ofthe Agency to have custody of all money of the Agency from whatever source derived.Subject to the provisions of each Financing Document and any contracts authorized by the Board for the lease,operation or custody of Agency property,the Treasurer is designated as the public officer or person who has charge of,handles,and bas access to all property ofthe Agency. (3)OtherOfficers. The Board shan have the power to appoint from time to time such other officers,agents, employees,counsel,contractors,and accountants,and to specify their respective powers,duties and responsibilities,as it may deem necessary or convenient. (4)Delegation. The Board shall have the power,to the extent permitted by the Act or any other applicable law,to delegate any of its functions to one or more Directors,officers,employees, contractors,or agents of the Agency,and to cause any of said Directors,officers,employees, contractors,or agents to take any actions for and in the name and on behalf of the Board or the Agency, Puge4oflO SECTION 5.3.Meetings of the Board. (1)Open Public Meetings Act. An meetings of the Board,inclnding regular,adjourned regular,special,and adjourned special meetings shall be scheduled,called,noticed,held and conducted in accordance with the provisions of chapter 21 ofthe Iowa Code (the "Open Meetings Act"). (2)Regular Meetings. The Board shall hold at least one regular meeting during each Fiscal Year.The date,hour and place of the holding of the regular meetings shaJJ,if requested by a Member,be provided to such Member. (3)Special Meetings. Special meetings of the Board for any pnrpose 01'purposes may be called at any time by the Chair or a majority of'Directors then in office.Special meetings of thc Board may be held at any time specified in the notice of the meeting which is consistent with the nctice and other provisions of the Open Meetings Act. (4)Minutes. The Secretary of the Agency shall cause to be kept minutes of the regular,adjourned regular,special,and adjourned special meetings of the Board and shall,as soon as possible after each meeting,cause a copy of the minutes to be delivered to each Director. (5)Ouorum, A majority ofthe Directors then in office,but no less than three,shall constitute a quorum for the transaction ofbusincss.No action may be taken by the Board except upon the affirmative vote of a majority of the Directors then'in office,except that less than a quorum may adjourn a meeting to another time and place. (6)Adjournment. Any meeting of the Board being held,or any hearing noticed or ordered to be beld at any mooting,may by order of the Board be continued or re-continued to any subsequent meeting, with notice thereof given in the same manner and to the same extent set forth herein for the notice of special meetings. SECTION 5.4.Rules and Regulations. The Agency may adopt,from time to time,by resolution of the Board,such rules and regulations for the conduct of its meetings and affairs as the Board determines are necessary or convenient. Page 5 oflO SECTION 5.5.Contracts. In the exercise of a common power of the Members or a power conferred npon the Agency by any law (whether currently in force or hereafter enacted)as an entity separate from the Members,and when authorized by resolution of the Board,the Agency may enter into any contract or agreement authorized under the Agreement.Such agreements may have such terms and conditions as shall be authorized by the Board. SECTION 5.6 Accoullts and RepOlts. (1)Books and Records. All funds of the Agency shall be strictly accounted for in books of account maintained by, 01'on behalf of,the Agency which shall report all receipts and disbursements of Agency funds. the Agency shall establish and maintain such funds and accounts as may be required by good accounting practice and by each Financiug Document for outstanding Bonds (to the extent such duties are uot assigned to Directors under the Financing Document).The books and records of the Agency shall be open to inspection at all reasonable times by each Member. The Agency shall require that each Financiug Document provide that the trustee appointed thereunder shall establish snitable funds and furnish suitable financial reports iu connection with the funds held by such trustee. (2)Audit. The Treasurer shall cause an independent audit to be made of the books of account and financial statements of the Agency for each Fiscal Year,and shall cause such financial statements and audit to be filed and reported,in compliance with any requirements of the Act. Any costs of the audit,includiug contracts with,or employment of,certified public accountants or public accountants in making ail audit pursuant to this Section shall be borne by the Agency fila,to the extent not paid from funds provided pursuant to one or more of the Agency's projects or programs,shall be a charge against any unencumbered funds of the Agency available for that purpose. SECTION 5,7,Funds, Subject to the applicable provisions of any Financing Documents related to outstanding Special Obligations of the Agency,which may provide for a trustee to receive,have custody of and disburse funds that constitute Agency funds,the Treasurer of the Agency shall receive,have the custody of and disburse Agency funds pursuant to such accounting procedures as may be approved by the Board,and shall make the disbursements necessary or convenient iu carrying out any of the provisions or purposes of this Agreement SECTION 5.8,Contributions and Advances. Without limiting the power of the Agency to accept contributions from persons other than the Members,contributions or advances of public funds and of the use of personnel,equipment 01'property may be made to the Agency by the Members hereto for any of the pUlposes of this Page 6 aflO Agreement.Any advance of funds by a Member may be made subject to repayment,and in such case shall be repaid,in the manner agreed upon by the Agency and the Member making such advance. SECTION 5.9.Indemnification. To the full extent permitted by law,the Board may authorize indemnification by the Agency of any person who is or was a Director,or an officer,employee or other agent of the Agency,and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a Director,officer,employee,contractor,or other agent of the Agency,against expenses,judgments,fines,settlements and other amounts actually and reasonably incurred in connection with such proceeding,if such person acted in good faith and in a manner such person reasonably believed to be in the best interests of the Agency and,in the case of a criminal proceeding,had no reasonable cause to believe the conduct of such person was unlawful and,in the case of any action by or in the right of the Agency,acted with such care,including reasonable inquiry,as an ordinarily prudent person in a like position would use under similar elrcumstances. Notwithstanding any provisions of law to the contrary,no Member shall have a light of contribution from any other Member for any judgment for damages caused by a negligent or wrongful act or omission of such first Member occurring in the performance by it or by the Agency of the provisions of this Agreement. SECTION 5.10.Executive Director.The Board may appoint and may remove an Executive Director and such other employees as it deem proper.Such Executive Director and other employees shall not be eligible to serve a.a trustee of the Agency. SECTION 5.U.Bonds of Officers.The Treasurer and any other officer or agent of the Agency charged with responsibility for the custody of any of its funds or property shall give bond in such sum and with such surety as the Board shall determine.If and to the extent permitted by law,the Treasurer and any such other officer,agent or employee may satisfy this requirement by filing an official bond in at least said amount obtained in connection with another public office so long as such official bond includes coverage of the Treasurer or such other person as such officer,agent or employee of the Agency.The Board in its discretion may also require any other officer,agent or employee of the Agency to give bond in such amount and with SUGhsurety as it shall determine.The Agency shall bear the cost of bond premiums. SECTION 5.12.Compensation.The powers,duties and compensation cf agents and employees shall he fixed by the Board. SECTION 5.13.Reports.The officers of the Agency shall submit at each annual meeting of the members reports covering the business of the Agency for the previous fiscal year. Such reports shall set forth the condition of the Agency at the close of such fiscal year. Page 7 oftO ARTICLE VI Assets;Project Asset Pools;Liability SECTION 6.1.Tangible or intangible property,contract rights or other assets owned or controlled by the Agency shall be held for the benefit of all Members. SECTION 6.2.Subject to the terms of the Financing Documents,individual contracts and project agreements,the obligation.of each Member and any other participant under each Financing Document,contract or agreement between the Agency and such Members and participants in connection with any project undertaken by the Agency shall be a several and not a joint obligation of such Members or any other project participants, ARTICLE VII Disposition of Properly The Board of the Agency,without authorization by the Members,shall have aU of the powers of the Agency conferred by the Agreement creating the Agency to acquire and dispose of properly. ARTICLEvrn Committee. SECTION 8.1.Exeoutive Committee.The Board may by resolution appoint an Executive Committee.The Exeoutive Committee shall serve at the pleasure of the Board and shan exercise such powers as the Board may by resolution delegate,including without limitation, responsibility for the general direction of the Agency when the Board is not in session. SECTION 8.2.Other Committees.The Board may in its discretion create and authorize the establishment of other committees as necessary to assist in the supervision and control of the Agency's affairs and to provide advice to the Board. ARTICLE IX Financial Transactions SECTION 9.1.Contracts.Except as otherwise provided in these Bylaws,the Board may authorize any officer or officers,agent or agents to enter into any contract or execute and deliver any instrument in the name and on behalf of the Agency,and such authority may be general or confined to specific instances. SECTION 9.2.Checks,Drafts,Other Financial Instruments.All checks,drafts 01'other orders for the payment of money,and all notes,bonds,obligations or other evidences of indebtedness issued in the name of the Agency shall be signed by such officer or officers,agent 01'agents,employee or employees of the Agency and in such manner a.shall from time to time be determined by resolution of the Board. Page 8 oflO SECTION 9.3.Deposits and Inyeshnents.All funds of the Agency shall be deposited from time to time to the credit of the Agency in such bank or banks as the Board may select or invested in accordance with the laws ofIowa. SECTION 9.4,Fiscal Year.The fiscal year of the Agency shal1 begin on the first day of January of each year and end on the thirty-first day of December of the same year. SECTION 9.5.Onerating Budget.In accord with the Agreement creating the Agency the Board shall establish an annual operating budget for the fiscal year that includes all estimated expenses and al1 estimated source,of revenue,The Board shall establish and provide for collection of due"cherges and assessrnents to the Members,in a form to be established by the Board,sufficient to collect such amounts as will in the aggregate be not less than budgeted expenditures,plus adequate provision for contingencies and reserves. ARTICLE X Miscellaneous SECTION 10.1.Membership in Other Organizatio11ll.The Agency may become a member of any other organization to which it may lawfully belong upon the affirmative vote of a majority of the members of the Board. SECTION 10.2.Waiver of Notice.Any Member or Trustee may waive in writing any notice of a meeting required to be given by these Bylaws.The attendance of a Member or Trustee at any meeting shall constitute a waiver of notice of such meeting by such Member or Trustee,except in case a where a Member or Trustee sball "attend a meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting has not been lawfully called or convened. SECTION 10.3.Rules and Regulations.The Board shall have powerto make and adopt such rules and regulations and policies,not inconsistent with law,the Agreement establishing the Agency,or these Bylaws,as it may deem advisable for the management of the business and affairs of the Agency. SECTION lOA.Accounting System and Reports:Audit.The Board shal1 cause to be established and maintained an accounting system which shall be subject to applicable laws,rules and regulations.The Board shall also,after the close of each fiscal year,cause to be made an audit of the accounts,books and financial condition of the Agency as of the end of such fiscal year.SUCll audit reports shall be made available to the Members.The annual audit shall be conducted by an independent certified public accountant. Page9 of 10 ARTICLE XI Amendments These Bylaws maybe amended by a vote of four-fifths of the Members of the Board at any regular or special meeting;provided,that no amendments hall be considered unless all Board Members are provided notice of the proposed amendment at least ten (10)days prior to any meeting at which the amendment is to be considered. Jpcfcr,mnl552418,I/MSWord22110.001 Page 10 oflO