HomeMy Public PortalAboutResolution 04-10 DEQ Loan AgreementRESOLUTION NO. 04-10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCCALL,
IDAHO, MAKING FINDINGS AND DECLARATIONS WITH RESPECT TO THE
FINANCING OF DOMESTIC WATER SUPPLY SYSTEM FACILITIES;
APPROVING AND AUTHORIZING, SUBJECT TO JUDICIAL
CONFIRMATION, THE EXECUTION OF A LOAN AGREEMENT BETWEEN THE
STATE OF IDAHO, DEPARTMENT OF ENVIRONMENTAL QUALITY, AND
THE CITY OF MCCALL FOR THE FINANCING OF ALL OR A PORTION OF
THE FACILITIES; AUTHORIZING THE FILING OF A PETITION FOR
JUDICIAL CONFIRMATION IN THE DISTRICT COURT OF THE FOURTH
JUDICIAL DISTRICT OF THE STATE OF IDAHO, IN AND FOR VALLEY
COUNTY; 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 has for
many years owned and operated a domestic water supply and
distribution system (the "System"); and
WHEREAS, the City Council (the "Council") of the City
has determined that certain improvements to the domestic
water supply facilities of the System (the "Improvements")
are required for the continued operation of the System in
compliance with applicable state and federal health and
environmental laws, regulations, and standards; and
WHEREAS, the estimated cost of the Improvements to the
City (exclusive of bond proceeds, grants, and other state
and federal contributions) is $1,800,000; and
WHEREAS, the City does not have sufficient funds
available in its current fiscal year's budget to finance
the cost of the acquisition of the Improvements, and the
Mayor and Council have determined that it is necessary to
finance the cost thereof from future years' water revenues;
and
WHEREAS the Council has now determined that it is in
the best interests of the City to finance all or a portion
of the cost of the Improvements through a loan from the
Drinking Water Loan Account of the State of Idaho,
Department of Environmental Quality (the "State"), and the
City has made application to the State for such loan; and
WHEREAS, the State has extended a tentative offer to
loan an amount not to exceed $1,800,000 to the City for
such purposes; and
WHEREAS, the financing of the costs of the
Improvements in the manner described would create an
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indebtedness or liability of the City exceeding the current
year's revenues; and
WHEREAS, the Council has determined that the cost of
the Improvements, and the proposed loan obligations 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 Council, on May 27, 2004, held and
conducted a public hearing, pursuant to a notice published
at least fifteen (15) days prior to the hearing in the
manner required by Sections 7-1304 and 7-1306, Idaho Code,
on the question of whether the Council should adopt a
resolution authorizing the filing of a petition with the
District Court of the Fourth Judicial District of the State
of Idaho, in and for the County of Valley, seeking judicial
confirmation of the proposed loan from the State and other
loans needed to finance the Improvements, and the incurring
of such indebtedness as "ordinary and necessary expenses"
within the meaning of Article 8, Section 3, of the Idaho
Constitution, pursuant to the Judicial Confirmation Law;
and
WHEREAS, as least fourteen (14) days have elapsed
following such public hearing, and the Council has
determined that it is in the best interests of the City and
the public health, safety, and welfare for the City to file
a petition for judicial confirmation pursuant to the
Judicial Confirmation Law upon the question of the
authority of the City to incur such indebtedness, to enter
into the proposed loan agreement, to issue its promissory
note, or other evidence thereof, and to pledge its water
System revenues as security for the payment thereof.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF MCCALL, IDAHO, as follows:
Section 1: The foregoing recitations
hereby adopted as findings of fact by the Council.
are
Section 2: Subject to the entry of a final
order of the District Court of the Fourth Judicial District
of the State of Idaho, in and for the County of Valley (the
"District Court"), confirming the authority of the City to
enter into the transaction, the Loan Offer, Acceptance and
Contract with the State of Idaho, Division of Environmental
Quality (the "Loan Agreement"), substantially in the form
which is 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
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additional documents and certifications as may be required
to carry out the intent of this Resolution.
Section 3: The Petition for Judicial
Confirmation (the "Petition"), substantially in the form
which is annexed hereto as Exhibit "B" and by reference made
a part hereof, is hereby approved, and the Mayor is
authorized to execute the verification of the same.
Section 4: The City's attorneys are hereby
authorized to file the Petition on behalf of the City in
the District Court, and to take all actions necessary with
respect thereto in order to obtain a judgment of said
District Court in accordance with the prayer of the
Petition.
Section 5: The Council hereby finds and
declares that the proposed Loan Offer, Acceptance and
Contract with the State of Idaho, 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:
no
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.
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 o
The amount of the proposed indebtedness is not
disproportionate to the City's overall budget for
the current or ensuing fiscal years.
Do
The proposed Improvements are authorized by the
general laws of the state.
E o
The City has operated the existing domestic water
supply facilities for many years and has
determined that the Improvements are
indispensable to the efficient continued
operation of the City's domestic water system.
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Section 6: This Resolution shall take effect and
be in force immediately upon its passage and approval.
DATED this 29th day of June, 2004.
CITY OF MCCALL
Valley County, Idaho
By
Mayor
ATTEST:
City Clerk
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