HomeMy Public PortalAboutResolution 04-12 Silvertip LLC AgreementRESOLUTION NO. 04-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCCALL,
VALLEY COUNTY, IDAHO, MAKING FINDINGS AND DECLARATIONS WITH
RESPECT TO SATISFACTION OF OUTSTANDING ASSESSMENTS AND
EXPENSES FOR CERTAIN PARCELS OF PROPERTY WITHIN LOCAL
IMPROVEMENT DISTRICT NO. 3, IMPROVEMENTS UPON THE PROPERTY
SUBJECT THERETO, AND RELATED SEWER SYSTEM FACILITIES;
APPROVING AND AUTHORIZING THE EXECUTION OF A LEASE -OPTION
AGREEMENT REGARDING ALL OR A PORTION OF THE FACILITIES;
APPROVING AND AUTHORIZING THE EXECUTION OF A ROAD AGREEMENT
RELATED THERETO; PROVIDING FOR RELATED MATTERS; AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of McCall, Valley County, Idaho (the
"City"), is a municipal corporation duly organized and
operating under the laws of the State of Idaho; and
WHEREAS, the City hereto created and confirmed an
assessment roll for Local Improvement District No. 3 ("LID
No. 3") which includes the real property described below;
and
WHEREAS, assessment installments for Parcels K, L, and
M, Spring Mountain Ranch PUD (the "Property") are
delinquent, and the City has caused the Property to be
deeded to the City pursuant to delinquency certification as
required by law; and
WHEREAS, the City has entered into a Vacant Land
Purchase and Sale Agreement, dated May 3, 2004, by which
Silvertip, LLC ("Silvertip"), shall purchase the Property,
in an amount sufficient to satisfy all outstanding
assessments and statutorily -required charges upon the
Property associated with LID No. 3; and
WHEREAS, Silvertip intends, under the conditions and
in accordance with the terms outlined in the Lease -Option
Agreement attached hereto as Exhibit "A," to construct a
sewer lift station on Parcel K of the Property (the
"Improvements"); and
WHEREAS, the City is authorized by the laws of the
State of Idaho to lease property for the benefit of the
City and its inhabitants and to enter into contracts with
respect thereto; and
WHEREAS, the City Council (the "Council") of the City
desires to lease the Improvements for the City to provide
sewerage services for its inhabitants; and
Page - 1
WHEREAS, in order to lease such Improvements, the City
proposes to enter into the Lease -Option Agreement (the
"Agreement") with Silvertip, attached hereto as Exhibit A;
as well as the Road Agreement addressing related issues,
attached hereto as Exhibit B; and
WHEREAS the Council has now determined that it is in
the best interests of the City to lease the Improvements
from Silvertip, and Silvertip has agreed to lease the
Improvements to the City; and
WHEREAS, the Agreement does not obligate the City
beyond any one fiscal year; and
WHEREAS, the Council has further determined that the
cost of the Improvements, and the proposed Agreement to be
incurred to finance the same, constitute "ordinary and
necessary expenses of the City authorized by the general
laws of the State within the meaning of Article 8, Section
3, of the Idaho Constitution, for which no approving vote
of the electors is required; and
WHEREAS, the City has operated a sewer collection and
treatment system (the "System") for a number of years and
the Council has determined that the Improvements to the
sewer collection and treatment facilities of the System are
required for the continued operation of the System in
compliance with applicable state and federal health and
environmental laws, regulations, and standards.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF MCCALL, IDAHO, as follows:
Section 1: The foregoing recitations are
hereby adopted as findings of fact by the Council.
Section 2: The Agreement annexed hereto as
Exhibit "A," is hereby approved, and the Mayor is hereby
authorized to execute the same for and on behalf of the
City. The appropriate officials of the City are hereby
further authorized to execute such additional documents and
certifications as may be required to carry out the intent
of this Resolution.
Section 3: Nothing contained in this
Resolution, the Agreement, any related document, or any
other instrument or document shall be construed with
respect to the City as incurring a pecuniary liability or
charge upon the general credit of the City or against its
taxing power, nor shall the breach of any agreement
contained in this Resolution, the Agreement, any related
document, or any other instrument or document executed in
connection therewith impose any pecuniary liability upon
Page - 2
the City or any charge upon its general credit or against
its taxing power.
Section 4: The City and Silvertip understand
and intend that the obligation of the City to make payments
under the Agreement shall constitute a current expense of
the City and shall not in any way be construed to be a debt
of the City in contravention of any applicable
constitutional or statutory limitation or requirement
concerning the creation of indebtedness by the City.
Nothing contained in this Resolution, the Agreement, any
related document, or any other instrument or document shall
be construed as obligating the City to levy or collect
taxes to make any payments required hereunder, or to expend
funds beyond the amount provided for in the then current
fiscal year of the City.
Section 5: The Council hereby finds and
declares that the proposed Agreement with Silvertip, the
indebtedness incurred thereby, and any evidence of
indebtedness executed pursuant thereto, for the financing
of the Improvements, constitute ordinary and necessary
expenses of the City authorized by the general laws of the
State of Idaho within the meaning of Article 8, Section 3,
Idaho Constitution, for which no approving vote of the
electors of the City is required, for the following
reasons:
A. The proposed expenditures are necessary to protect
the health, safety, and welfare of the inhabitants
of the City and to comply with applicable state
and federal health and environmental laws,
regulations, and standards.
B. The proposed expenditures are for the purpose of
replacing, rehabilitating, maintaining, and
extending existing City property in order to
render it serviceable, as opposed to the
construction of wholly new facilities.
C. The City has operated the existing sewer
collection and treatment facilities for many years
and has determined that the Improvements are
indispensable to the efficient continued operation
of the City's sewer collection and treatment
system.
D. The amount of the proposed indebtedness is not
disproportionate to the City's overall budget for
the current or ensuing fiscal years.
E. The proposed Improvements are authorized by the
general laws of the state.
Page - 3
Section 6: In conjunction with Silvertip's
acquisition of the Property and in consideration of the
resulting satisfaction of the outstanding assessments and
obligations arising from Local Improvement District No. 3,
and in consideration of the mutual obligations contained in
the Road Agreement attached hereto as Exhibit "B," the Road
Agreement annexed hereto as Exhibit "B," is hereby approved,
and the Mayor is hereby authorized to execute the same for
and on behalf of the City. The appropriate officials of
the City are hereby further authorized to execute such
additional documents and certifications as may be required
to carry out the intent of this Resolution.
Section 7: The Council hereby finds that the
purchase price of the Property is sufficient to pay all
amounts required under Idaho Code § 50-1715 to satisfy all
assessments, interest, penalties or other charges required
to be paid as a result of the Property's inclusion in Local
Improvement District No. 3. Specifically, the Council
finds that the purchase price of the Property is sufficient
to satisfy all delinquent assessments, penalties, and
interest on the Property, and all outstanding assessments
on the Property, plus one year's interest. To the extent
it is within the Council's authority to require payment of
further or additional penalties or charges in association
with satisfaction of the obligations attached to the
Property in association with Local Improvement District No.
3, the Council finds and declares that it retains the
discretion to, and hereby does, waive the same.
Section 8: This Resolution shall take effect
and be in force immediately upon its passage and approval.
DATED this day of August, 2004.
CITY OF MCCALL
Valley County, Idaho
By: C(-4`
Kirk Eimers Mayor
ATTEST:
na Clark, Deputy City Clerk
Page - 4