HomeMy Public PortalAboutResolution 04-15 Idaho Bond Bank RefinanceRESOLUTION NO. 04-15
RESOLUTION OF THE CITY OF McCALL APPROVING A
FORM OF LOAN AGREEMENT WITH THE IDAHO BOND
BANK AUTHORITY TO REFINANCE THE CITY'S
DEPARTMENT OF ENVIRONMENTAL QUALITY OF THE
STATE OF IDAHO LOAN IN THE AMOUNT OF NOT TO
EXCEED $2,828,282 AND AUTHORIZING THE EXECUTION
AND DELIVERY THEREOF, AND RELATED MATTERS
WHEREAS, pursuant to the Water Pollution Abatement Act, Idaho Code, Title 39,
Chapter 36, the City of McCall, Idaho (the "City") entered into a Department of Health and
Welfare Loan Offer, Acceptance and Contract for Wastewater Facility Design and Construction
in the amount of $3,140,850 with the entity now known as the Department of Environmental
Quality of the State of Idaho ("DEQ"), and the City issued its promissory obligation or note to
DEQ upon full disbursement of the loan (collectively, the "Prior Loan");
WHEREAS, the Idaho Bond Bank Authority (the "Authority") is an independent public
body corporate and politic duly created and operating pursuant to Idaho Code, Title 67, Chapter
87 as amended or supplemented from time to time (the "Act");
WHEREAS, the Act authorizes and empowers the Authority to issue bonds for the
purpose of purchasing municipal bonds, including loans undertaken by municipalities for any
purpose authorized by law;
WHEREAS, the Authority intends to issue Idaho Bond Bank Authority Revenue Bonds,
Series 2004 (the "Bonds");
WHEREAS, the City desires to execute a loan agreement by and between the City and
the Authority, in which a portion of the proceeds of the Bonds shall prepay in full the Prior Loan
(the "Loan Agreement"); and
WHEREAS, the City acknowledges that pursuant to Idaho Code, Section 67-8727,
execution and delivery of the Loan Agreement shall, upon failure by the City to transfer
scheduled payments under the Loan Agreement, subject certain funds held by the State of Idaho
on behalf of the City to intercept by the trustee for the Bonds;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of McCall,
Idaho, as follows:
SECTION 1. The City Council hereby finds and determines that the foregoing recitals
are true and correct.
SECTION 2. The proposed form of Loan Agreement, by and between the City and the
Authority, on file with the City Clerk, is hereby approved. The Mayor or City Clerk, jointly and
severally, or any such officer's designee, are each hereby authorized and directed, on behalf of
the City, to execute and deliver the Loan Agreement in substantially said form, with such
changes therein as such officer may require or approve, subject to review by the City Attorney or
the City Attorney's designee, such approval to be conclusively evidenced by the execution and
delivery thereof; provided, however, that (i) the term of the Loan Agreement shall end no later
than September 1, 2022, (ii) the principal amount as set forth in the Loan Agreement shall not
exceed $2,828,282; (iii) the true interest cost as set forth in the Loan Agreement shall not exceed
4.071%; and (iv) the net cash flow savings shall be at least $1,000, as confirmed by the
underwriter and acknowledged by the City on the date the Bonds are sold.
SECTION 3. All actions heretofore taken by the officers and agents of the City with
respect to the refinancing of the Prior Loan are hereby approved, confirmed and ratified, and the
officers and City Council members of the City or their duly authorized designees are hereby
authorized and directed, jointly and severally, to execute and deliver any and all documents,
including but not limited to those described in the Loan Agreement, and do any and all things,
deemed necessary to effect the execution and delivery of the Loan Agreement and to carry out
the intent and purpose of this resolution and otherwise necessary to carry out the refinancing of
the Prior Loan, including, without limiting the forgoing, the execution and delivery of a
continuing disclosure agreement, if necessary, a tax certificate, any amendments to the Prior
Loan, and closing documents.
2004.
SECTION 4. This resolution shall become effective immediately upon adoption.
PASSED by the City Council of the City of McCall, Idaho, this 18th day of October,
APPROVED by the Mayor of the City of McCall, Idaho, this 18th day of October, 2004.
14itze-ec.
Kirk Eimers
Mayor
ATTEST:
Dan Irwin
City Clerk
STATE OF IDAHO
ss:
COUNTY OF YA I
I, Dan Irwin, Clerk of the City of McCall, Idaho (the "City"),
the foregoing is a full, true and correct copy of the record of Resolution No.
now remains on file and of record in my office.
IN WITNESS WHEREOF, I have hereunto set my hand and
the City of McCall, Idaho, on this 3 g day of October, 2004.
hereby certify that
OLd-t 5 as the same
affixed the seal of
Dan Irwin
CITY CLERK