HomeMy Public PortalAboutResolution 08-05 Wausau Judgments - signedRESOLUTION NO. 08-5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF McCALL, IDAHO,
RELATED TO THE CASE OF EMPLOYERS INSURANCE OF WAUSAU VS. THE
CITY OF McCALL, ET AL, CASE NUMBER CV-01-629-S-BLW.
WHEREAS, on April 23, 2007 the Honorable B. Lynn Winmill issued a Memorandum
Decision and Order requiring the City of McCall to take specific actions to address the payment
of judgments entered against the City in favor of Wausau and St. Clair Contractors; and
WHEREAS, the City Council has sought guidance from its staff, attorneys and financial
advisors; and
WHEREAS, the City Council recognizes that it is in the best interests of the City and its
citizens to seek to satisfy the City's obligations under all applicable laws; and
WHEREAS, the City Council adopted Resolution 07-9 on May 24, 2007, authorizing
specific actions in compliance with the April 23, 2007 Memorandum Decision and Order; and
WHEREAS, the City Council has followed the plan laid out in Resolution 07-9,
including the payment of $300,432.00 of General Fund surplus funds, the payment of
$666,101.00 borrowed under the authority of I.C. § 50-1006, and the pursuit of Judicial
Confirmation of long-term debt sufficient to pay the balance due on the judgments; and
WHEREAS, a hearing on the City's petition for Judicial Confirmation was held on
February 27, 2008 in the Fourth Judicial District Court in and for the State of Idaho; and
WHEREAS, Fourth Judicial District Court Judge Thomas F. Neville issued the Court's
Findings of Fact, Conclusions of Law and Judgment on February 29, 2008 ("February 29, 2008
Judgment") approving the City's Petition for Judicial Confirmation and providing the City with
the authority to enter into the requested long-teiiii debt; and
WHEREAS, a hearing on Motions for Contempt of Court filed by Wausau and St. Clair
is scheduled for March 6, 2008 in Federal District Court; and
WHEREAS, St. Clair has filed motions for sanctions in the Declaratory Judgment action
filed following the dismissal of said action on February 8, 2008; and
WHEREAS, the City Council has asked Wausau to withdraw the March 6, 2008 hearing,
with prejudice and St. Clair to withdraw their pending motions, with prejudice, in the
Declaratory Judgment action; and
WHEREAS, on February 25, 2008 the City Council adopted Resolution 08-4,
authorizing the filing of a Petition in the United States Bankruptcy Court in and for the District of
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Idaho, seeking relief under Chapter 9 of the United States Bankruptcy Code, 11 U.S.C. §§ 101, et
seq.; and
WHEREAS, the Petition seeking relief under Chapter 9 has not yet been filed with the
United States Bankruptcy Court, while the City awaits a response from Wausau and St. Clair on the
City's request to dismiss the motion for contempt, with prejudice, and dismiss St. Clair's motions
for sanctions, with prejudice; and
WHEREAS, representatives from Wausau and St. Clair have requested from the City
further assurances that the City will implement the provisions of Resolution 07-9.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY
COUNCIL OF THE CITY OF McCALL, IDAHO:
SECTION 1: The City Council hereby reaffirms Resolution 07-09 as the policy of the
City.
SECTION 2: City staff and attorneys for the City are directed to take the following
actions:
(a) Continue to implement the provisions of Resolution 07-09; and
(b) Comply with Judge Winmill's judgments and orders, as authorized by Idaho law,
to pay the judgments; and
(c) Pursue diligently the funding authorized in the February 29, 2008 Judgment; and
(d) Provide infoiuiation about their progress on these actions to Wausau and St. Clair,
on request; and
(e) Repeat the request to Wausau and St. Clair to withdraw the March 6, 2008
hearing and pending motion with prejudice and St. Clair to withdraw their
pending motions, with prejudice, in the Declaratory Judgment action.
SECTION 3: If the pending funding effort is not a success, then City representatives
shall pursue alternative funding methods to present to the Council for consideration, in accord
with the spirit of this Resolution and Resolution 07-9.
SECTION 4: This resolution shall not prevent the City from pursuing any appeal of any
judgment or order.
SECTION 5: EFFECTIVE DATE: This Resolution shall be in full force and effect
immediately upon passage.
PASSED AND APPROVED BY THE COUNCIL AND MAYOR OF THE CITY OF
McCALL, IDAHO, this,k-F,cw day of/�%/ , 2008.
Bert Kulesza, Mayor
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ATTEST: /7
Fred Quiel, Acting City Clerk
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