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Board Minutes – December 20, 2021

The Adams County Board of Supervisors met on Monday, December 20, 2021 at 9:00 am with the following members present: Bobbi Maynes, Leland Shipley, Merlin Dixon, Doug Birt and Scott Akin. The meeting was called to order by Chairperson Maynes and the Pledge of Allegiance was recited. Akin moved, seconded by Birt to approve today’s agenda and the minutes from December 13, 2021.  All supervisors voted aye.  Motion carried.

            Engineer Travis Malone gave an update on the Secondary Roads Department.  Malone is still waiting on a skid steer bid and to be able to purchase from Robinson Implement. Govig Inc is set to replace the Willow Avenue bridge next fiscal year but will be purchasing supplies this year. Malone has been sitting through several webinars and meetings regarding how the Infrastructure Bill will affect Adams County’s funding. The crews have been busy cleaning up trees after the derecho last week.

            Dixon moved, seconded by Shipley to approve a handwritten claim for the previously approved purchase of a Dodge Durango for the Sheriff’s Office.  All supervisors voted aye. Motion carried.

            Shipley moved, seconded by Akin to repair the lights that were damaged in the jail out of Central Services.  All supervisors voted aye.  Motion carried. 

            Birt moved, seconded by Dixon to approve the agreement with OPN for professional services in the amount of $58,600 of fixed fees with estimated reimbursable expenses of $2000 for the proposed renovation project for the courthouse. All supervisors voted aye.  Motion carried. 

            Discussion on referendum or urban renewal referendum for bonding on courthouse renovation project tabled.

            Discussion and possible action on approving salaries for the FY 22/23 tabled.

Shipley moved, seconded by Akin to approve Resolution 2021-30 authorizing Adams County to enter into settlement agreements with McKesson Corporation, Cardinal Health, Inc., AmerisourceBergen Corporation, Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceuitca, Inc., agree to the terms of the Iowa opioid allocation memorandum of understanding and authorize entry into that memorandum of understanding.  All supervisors voted aye.  Motion carried.

RESOLUTION NO. 2021- 30

Authorizing Adams County to Enter into Settlement Agreements with McKesson Corporation, Cardinal Health, Inc., AmerisourceBergen Corporation, Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceuitca, Inc., Agree to the Terms of the Iowa Opioid Allocation Memorandum of Understanding and Authorize Entry Into that Memorandum of Understanding

WHEREAS, negotiations to settle claims against several of the Opioid Defendants, specifically McKesson Corporation, Cardinal Health, Inc., AmerisourceBergen Corporation, Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceuitca, Inc. (the “Settling Defendants”) have been ongoing for several years;

WHEREAS, negotiations with the Settling Defendants have resulted in proposed nationwide settlements of state and local government claims involved in the Litigation;

WHEREAS, copies of the proposed terms of those proposed nationwide settlements have been set forth in the Distributors Master Settlement Agreement and the J &J Master Settlement Agreement ( collectively “Settlement Agreements”);

WHEREAS, copies of the Settlement Agreements as well as summary of the main terms of the Settlement Agreements, the deadlines for submitting the Participation Agreements to the Settlement Agreements and the MDL Court’s Order setting deadlines for any Plaintiff who declines to enter into the Settlement Agreements have been provided to the County prior to the execution of this Resolution;

WHEREAS, the Settlement Agreements provide, among other things, for the payment of a certain sum to settling government entities in Iowa including to the State of Iowa and Participating Subdivisions, as that term is defined in the Settlement Agreements, upon occurrence of certain events as defined in the Settlement Agreements (“Iowa Opioid Funds”);

WHEREAS, the Law Firms have engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the Iowa Opioid Funds will be allocated, which has resulted in the proposed Iowa Opioid Allocation Memorandum of Understanding (“Allocation MOU”), which is an agreement between all of the entities who are signatories to the Allocation MOU;

WHEREAS, a copy of the Allocation MOU and the Exhibits to that MOU has been provided with this Resolution;

WHEREAS, the Allocation MOU divides Iowa Opioid Funds as follows: (i) 50% to the State (“the Iowa Abatement Share”) and (ii) 50% to Participating Local Governments (“LG Share”), less fees and costs allocated to the Iowa Backstop Fund as set forth in Section D of the Allocation MOU and in this Resolution (“LG Abatement Share”).

WHEREAS, the LG Abatement Share shall be distributed in direct payments to the Counties that are Participating Local Governments according to the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804) in the amounts set forth on Exhibit 2 to the Allocation MOU (“Direct Distribution Percentage”). The Direct Distribution Percentage will be multiplied by the total LG Abatement Share to arrive at the total allocation to the Participating Local Government (the “Direct Distribution Amount”).

WHEREAS, 100% of the Iowa Abatement Share and the LG Abatement Share, regardless of allocation, shall be utilized only for Opioid Related Expenditures incurred after the Effective Date of this MOU. The list of approved Opioid Related Expenditures are set forth in Exhibit 1 to this MOU.

WHEREAS at least 75% of the Iowa Abatement Share and 75% of the LG Abatement

Share shall be utilized for only the “Core Strategies” listed in Schedule A of Exhibit 1 to this MOU.

WHEREAS, every Participating Local Government that receives a Direct Distribution Amount shall create a separate fund on its financial books and records that is designated for the receipt and expenditure of the entity’s Direct Distribution Amount, called the “LG Abatement Fund.” Funds in an LG Abatement Fund shall not be commingled with any other money or funds of the Participating Local Government. A Participating Local Government may invest LG Abatement Fund funds consistent with the investment of other funds of a Participating Local Government.

WHEREAS, Funds in a LG Abatement Fund may be expended by a Participating Local Government only for Opioid Related Expenditures. For avoidance of doubt, funds in a LG Abatement Fund may not be expended for costs, disbursements or payments made or incurred prior to the Settlement.

WHEREAS, each LG Abatement Fund shall be subject to audit in a manner consistent with Code oflowa §§331.402(2)(i) and 11.6. Any such audit shall be a financial and performance audit to ensure that the LG Abatement Fund disbursements are consistent with the terms of this MOU. If any such audit reveals an expenditure inconsistent with the terms of this MOU, the Participating Local Government shall immediately redirect the funds associated with the inconsistent expenditure to an Opioid Related Expenditure.

WHEREAS, County has contracted with the Law Firms for representation in the Litigation and the Law Firms have been representing those entities since 2018 and in consideration for the Law Firms’ representation, the County entered into a contract with the Law Firms for a 25% contingency fee applied to County’s total recovery from any settlement.

WHEREAS, the Settlement Agreements provide for the payment of attorney’s fees and legal expenses owed by States and Participating Local Governments to outside counsel retained for Opioid Litigation. To effectuate this, the Court in the MDL Litigation has established a fund to compensate attorneys representing plaintiffs in the Litigation (the “National Attorney Fee Fund”).

WHEREAS, the Law Firms intend to make application to the National Attorney Fee Fund. However, because there is still uncertainty regarding what counsel for litigating local governments will recover as compensation for the large volume of work done and the large out of pocket expense of the Litigation, and whereas the Parties to the Allocation MOU desire to fairly compensate outside counsel for the work done on behalf of the Participating Local Governments in Iowa, the Allocation MOU provides that a fund be created from 15 % of the LG Share attributable to the Litigating Local Governments, less any amounts a Litigating Local Government (“Iowa Backstop Fund”)

WHEREAS, the Iowa Backstop Fund is meant to compensate outside counsel for participating local governments only for amounts not recovered at the National Fee Fund attributable to their Iowa clients;

WHEREAS, to be eligible for the Iowa Backstop Fund, the Law Firms must first seek payment from the National Attorneys’ Fees Fund and may not recover amounts attributable to Counsel’s representation of the County received at the National Attorneys’ Fees Fund from the Iowa Backstop Fund;

WHEREAS, the County, by this Resolution, agrees to the creation of the Iowa Backstop Fund in the amount of 15% of the LG Share attributable to the Litigating Local Governments in order to fund a state-level “backstop” for payment of the fees, costs, and disbursements of the Law Firms;

WHEREAS, in no event shall the total of the amounts received by the Law Firms at the National Attorney’s Fees Fund related to the County and the amount received at the Iowa Backstop Fund exceed the amount the Law Firms would have been entitled to pursuant their fee contract with the County;

WHEREAS, the County, by this Resolution, shall establish an account for the receipt of

the LG Abatement Share consistent with the terms of this Resolution (“the LG Abatement Fund”);

WHEREAS, the County’s LG Abatement Fund shall be separate from the County’s general fund, shall not be commingled with any other County funds, and shall be dedicated to funding opioid abatement measures as provided in the Settlement Agreements and the Allocation MOU;

WHEREAS, the County must comply annually with the reporting requirements in the Allocation MOU;

WHEREAS, the if the County elects to become a Participating Subdivision in the Settlement Agreements it will receive the benefits associated with the Settlement Agreement and the Allocation MOU, provided the County (a) approves the Settlement Agreements; (b) executes the Participation Agreements stating the County’s intention to be bound by the Settlement Agreements; (3) approves the Allocation MOU; (4) executes the Acknowledgement and Agreement to be Bound to Memorandum of Understanding necessary to execute the Allocation MOU;

WHEREAS, the intent of this Resolution is to authorize the County to enter into the Settlement Agreements by executing the Participation Agreements and to enter into the Allocation MOU by executing the Acknowledgement and Agreement to be Bound to Memorandum of Understanding necessary to execute the Allocation MOU;

NOW, THEREFORE, BE IT RESOLVED: the County Board of Supervisors hereby approves and authorizes Adams County to settle and release the County’s claims against the Settling Defendants in exchange for the consideration set forth in the Settlement Agreements, Allocation MOU and all exhibits thereto, including taking the following measures:

1.         The execution of the Participation Agreement to the Distributors Settlement Agreement and any and all documents ancillary thereto.

2.         The execution of the Participation Agreement to the Janssen Settlement Agreement and any and all documents ancillary thereto.

3.         The execution of the Allocation MOU by executing the Acknowledgement and Agreement to be Bound to Memorandum of Understanding.

            BE IT FURTHER RESOLVED: the County hereby establishes an account separate and distinct from the County’s general fund which shall be titled “LG Abatement Fund” to receive the LG Abatement Share from the Settlement Agreements.

BE IT FURTHER RESOLVED that all actions heretofore taken by the Board of Supervisors and other appropriate public officers and agents of the County with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved.

Adopted by the Adams County Board of Supervisors this 20th day of December, 2021.

Historical Preservation Committee presented an update on their work this past year and presented their upcoming goals along with their budget request for FY 22/23. The board discussed a strategy for documenting headstones that needs repaired in the rural cemeteries.

            Department Head Reports:  Veterans – Commissioners attended meeting/training, Veteran’s Day Celebration, January 3rd Williamson Legion Fry, assisting doing federal claims for anyone.  Conservation – A lot of hunting is going on, utilizing food plots, working on budget.  Recorder – VA has been asking to get access to Recorder’s records, membership to PRIA (Property Records Industry Association) is $60 and she will be getting a membership.  Treasurer – Duncan is working towards getting his certification to be drive instructor.  IT- Transition to .gov is complete.

            Akin moved, seconded by Shipley to adjourn the meeting at 12:05 pm.  All supervisors voted aye.  Motion carried.

            Committee and Meeting reports were presented as follows:  Maynes- FMTC, Stanton, Dec. 16, Shipley – FMTC, Stanton, Dec. 16, Dixon – FMTC, Stanton, December 16, Trolley, Creston, Dec. 17, Akin- Southern Hills, Corning, Dec. 16, Birt – DHS/DCAT, Creston, Dec. 17.

ATTEST: Bobbi Maynes, Chairperson, Adams County Board of Supervisors

     Rebecca Bissell, Adams County Auditor