HomeMy Public PortalAboutResolution 08-04 Chapter 9 Petition - signedRESOLUTION NO. 08-4
A RESOLUTION OF THE CITY OF MCCALL, IDAHO AUTHORIZING
THE FILING OF A PETITION IN THE UNITED STATES BANKRUPTCY
COURT IN AND FOR THE DISTRICT OF IDAHO SEEKING RELIEF
UNDER TITLE 11 U.S.C.A CHAPTER 9 OF THE UNITED STATES
BANKRUPTCY CODE, 11 U.S.C. §§ 101, ET SEQ.; AND PROVIDING FOR
THIS RESOLUTION TO BE EFFECTIVE UPON ITS PASSAGE AND
APPROVAL
WHEREAS, this Resolution is made on the 5-day of February, 2008 by the City of
McCall, Idaho ("City"); and
WHEREAS, the City is a duly incorporated political subdivision of the State of Idaho; and
WHEREAS, the City has determined that it cannot satisfy the Judgments ("Judgments")
entered against it in the case styled Wausau v. City of McCall, et al., United States District Court in
and for the District of Idaho (Case No. CIV 1:01-629), in accordance with the Orders entered by the
Court in that Case; and
WHEREAS, the City has paid to Wausau on account of the Judgments those funds available
to the City under applicable State law;
WHEREAS, the City is of the opinion that it has been ordered to pay more than it is
authorized under State law to pay, and has been unable to find lenders willing to lend to the City to
satisfy the Judgments on terms consistent with the City Council's statutory and fiduciary duties on
behalf of the citizens of McCall; and
WHEREAS, the City has attempted good faith negotiations regarding satisfaction of the
Judgments, but Wausau has declined to negotiate the Judgments; and
WHEREAS, negotiations are impracticable in the absence of a decision by the Ninth Circuit
Court of Appeals or the Supreme Court of Idaho regarding the City's constitutional and statutory
ability to raise funds to pay the Judgments; and
WHEREAS, the City desires to reorganize and restructure its finances in an effort to adjust
its debts in a fair and equitable manner to its constituents, including its creditors, taxpayers and rate
payers while continuing to provide essential services to its citizens and the surrounding community;
and
WHEREAS, on the 25th day of February, 2008, the City held a Special Public Meeting to
discuss how it may proceed in light of the financial distress caused by the Judgments and Orders
entered against it in the Wausau matter; and
WHEREAS, the City has determined that it is in the best interests of its citizens and the
surrounding community to reorganize and restructure its finances in an effort to provide essential
services to its citizens and the surrounding community; and
WHEREAS, the City is authorized to file or cause to be filed a Petition in the United States
Bankruptcy Court in and for the District of Idaho, seeking relief under Chapter 9 of the United States
Bankruptcy Code, 11 U.S.C. §§ 101, et seq.
RESOLUTION NO. 08-4 - 1
NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCIL AND THE
CITY OF MCCALL, IDAHO:
Section 1: The City hereby authorizes the filing of a Petition in the United States
Bankruptcy Court in and for the District of Idaho, seeking relief under Chapter 9 of the United States
Bankruptcy Code, 11 U.S.C. §§ 101, et seq.
Section 2: That this Resolution constitutes the necessary action of the City to file its
Petition under Article VIII § 3 and Article XII § 2 of the Idaho Constitution and Idaho Code § 50-
301 and Idaho Code § 67-3901, et seq.
Section 3: This Resolution authorizes the City to retain the law firms Seyfarth Shaw
LLP and Trout Jones Gledhill Fuhrman, P.A. and such other professionals as the Mayor or City
Council shall designate to file the City's Petition and represent the City in the Bankruptcy
Proceedings and in all proceedings commenced under or resulting from this Resolution.
Section 4: The Mayor, the City Clerk, and City Staff, as well as legal counsel to the
City, are hereby authorized and directed to take all necessary and convenient steps to file said
Petition, and all related Schedules and other documents, to appear and represent the City as
necessary in the Bankruptcy Proceedings, and to obtain confirmation of a Plan of Reorganization
under Chapter 9 of the United States Bankruptcy Code, 11 U.S.C. §§ 101, et seq.
Section 5: That any and all actions heretofore or hereafter taken in the name of or on
behalf of the City in good faith by any of said persons or entities in furtherance of the purpose of the
foregoing Resolutions or in connection with the transactions contemplated therein are hereby
ratified, confirmed and adopted as the acts of the City.
Section 6: This Resolution authorizes the City's legal counsel in the Bankruptcy
Proceeding to take all reasonable actions it deems necessary to protect the City's interests.
Section 7: That this Resolution shall be in full force and effect immediately upon its
adoption and approval.
ADOPTED AND APPROVED THIS o?S -day of February,
City of McCall
By:
Attest:
By:
Fred uie1, Acting City Clerk
za, Mayor /
RESOLUTION NO. 08-4 - 2