HomeMy Public PortalAboutResolution 17-10 Special Election CertificationCity of McCall
VALLEY COUNTY, STATE OF IDAHO
RESOLUTION No. 17-10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF McCALL:
• SETTING FORTH RECITALS OF AUTHORITY, FINDINGS,
DETERMINATIONS AND PURPOSES; and
• CERTIFICATION OF SPECIAL ELECTION RESULTS OF THE QUALIFIED
ELECTORS OF THE CITY OF McCALL (the "CITY") VOTING ON THE
PROPOSITION OF THE ANNEXATION OF THE EXISTING WASTEWATER
SERVICE AREA OF THE CITY INTO THE PAYETTE LAKES RECREATIONAL
WATER AND SEWER DISTRICT (the "DISTRICT") PURSUANT TO THAT
CERTAIN AGREEMENT OF ANNEXATION PLAN, PROPERTY TRANSFER AND
AGREEMENT OF OPERATIONS SUBJECT TO CONDITIONS PRECEDENT BY
AND BETWEEN THE DISTRICT AND THE CITY; and
• APPROVING THE ANNEXATION OF THE EXISING WASTEWATER SERVICE
AREA OF THE CITY INTO THE DISTRICT; and
• APPROVAL OF THE TERMS AND CONDITIONS OF THE AGREEMENT OF
ANNEXATION PLAN, PROPERTY TRANSFER AND AGREEMENT OF
OPERATIONS SUBJECT TO CONDITIONS PRECEDENT BY AND BETWEEN
THE DISTRICT AND THE CITY; and
• AUTHORIZING THE FILING IN THE NAME OF THE CITY JOINTLY WITH
THE DISTRICT AS PETITIONERS IN THE FOURTH DISTRICT COURT OF
THE STATE OF IDAHO, IN AND FOR THE COUNTY OF VALLEY, A VERIFIED
PETITION AND FILING FOR ORDER AND JUDGMENT OF APPROVAL OF
ANNEXATION, TRANSFER OF ASSETS; AGREEMENT OF OPERATIONS AND
EFFECTIVE DATE; and
• DIRECTING THE CITY CLERK; and
• ESTABLISHING AN EFFECTIVE DATE.
Section 1. Recitals and Findings: For purposes of this Resolution, the City Council of the City of
McCall recites, finds and determines that:
1.1 It is the intent and purpose of the adoption and approval of this Resolution by the City
Council of the City of McCall (the "City") to:
Page 1 of 8
Resolution 17-10 Certifying Special Annexation Election of May 16, 2017, approval of Annexation Agreement and
Annexation and Approval of Filing Petition in Court
" I s s u e a c e r t i f i c a t e o f a s p e c i a l a n n e x a t i o n e l e c t i o n q u e s t i o n c o n d u c t e d o n M a y 1 6 , 2 0 1 7 ;
a n d
" A p p r o v e , s u b j e c t t o c o n d i t i o n s p r e c e d e n t , t h e a n n e x a t i o n o f t h e e x i s t i n g C i t y w a s t e w a t e r
s e r v i c e a r e a w i t h i n t h e C i t y ( t h e " A n n e x a t i o n A r e a " ) i n t o t h e P a y e t t e L a k e s
R e c r e a t i o n a l W a t e r a n d S e w e r D i s t r i c t ( t h e " D i s t r i c t " ) ; a n d
" A p p r o v e , s u b j e c t t o c o n d i t i o n s p r e c e d e n t , t h e A g r e e m e n t o f A n n e x a t i o n P l a n , P r o p e r t y
T r a n s f e r a n d A g r e e m e n t o f O p e r a t i o n s S u b j e c t t o C o n d i t i o n s P r e c e d e n t b y a n d b e t w e e n
t h e C i t y a n d t h e D i s t r i c t [ a t r u e a n d c o r r e c t c o p y t h e r e o f i s a t t a c h e d m a r k e d E x h i b i t A
( t h e " A n n e x a t i o n A g r e e m e n t " ) ] ; a n d
" A p p r o v e t h e j o i n t V e r i f i e d P e t i t i o n o f t h e C i t y , t o g e t h e r w i t h t h e D i s t r i c t , a n d t o
a u t h o r i z e i t s f i l i n g , i n t h e F o u r t h D i s t r i c t C o u r t o f t h e S t a t e o f I d a h o , i n a n d f o r t h e
C o u n t y o f V a l l e y , f o r t h e p u r p o s e o f o b t a i n i n g a n o r d e r a n d j u d g m e n t o f t h e D i s t r i c t
C o u r t p u r s u a n t t o I d a h o C o d e S e c t i o n 4 2 - 3 2 4 0 ( 2 ) : a p p r o v i n g t h e A n n e x a t i o n
A g r e e m e n t a n d t h e a n n e x a t i o n o f t h e A n n e x a t i o n A r e a i n t o t h e D i s t r i c t , t r a n s f e r o f
a s s e t s , a g r e e m e n t o f o p e r a t i o n s [ a l l i n a c c o r d a n c e w i t h t h e t e r m s a n d c o n d i t i o n s o f t h e
A n n e x a t i o n A g r e e m e n t ] a n d t o e s t a b l i s h a n e f f e c t i v e d a t e t h e r e o f a s s e t f o r t h i n t h e d r a f t
V e r i f i e d P e t i t i o n w h i c h i s h e r e i n a p p r o v e d , s u b j e c t t o m i n o r e d i t s a s a u t h o r i z e d b y t h e
M a y o r a n d t h e C h a i r m a n o f t h e D i s t r i c t B o a r d o f D i r e c t o r s [ a t r u e a n d c o r r e c t c o p y o f
s a i d d r a f t e d V e r i f i e d P e t i t i o n i s a t t a c h e d m a r k e d E x h i b i t B ( t h e " P e t i t i o n " ) .
1 . 2 T h e C i t y , i s a m u n i c i p a l c o r p o r a t i o n f o r m e d , o p e r a t i n g a n d e x i s t i n g i n V a l l e y C o u n t y , I d a h o
u n d e r a n d p u r s u a n t t o t h e p r o v i s i o n s o f t h e C o n s t i t u t i o n a n d t h e l a w s o f t h e s t a t e o f I d a h o
a n d t h e C i t y C o u n c i l ( t h e " C o u n c i l " ) i s i t s g o v e r n i n g b o a r d ; a n d
1 . 3 T h e P a y e t t e L a k e s R e c r e a t i o n a l W a t e r a n d S e w e r D i s t r i c t , V a l l e y C o u n t y , I d a h o , i s a
r e c r e a t i o n a l w a t e r a n d s e w e r d i s t r i c t o p e r a t i n g a n d e x i s t i n g p u r s u a n t t o I d a h o C o d e , T i t l e
4 2 , C h a p t e r 3 2 ( t h e " D i s t r i c t ) a n d t h e B o a r d o f D i r e c t o r s ( t h e " B o a r d " ) i s i t s g o v e r n i n g
b o a r d ; a n d
1 . 4 T h e C i t y h a s c o n s t r u c t e d a n d c u r r e n t l y m a i n t a i n s a w a s t e w a t e r c o l l e c t i o n s y s t e m s e p a r a t e
a n d a p a r t f r o m t h e w a s t e w a t e r c o l l e c t i o n s y s t e m t h a t h a s b e e n c o n s t r u c t e d a n d i s c u r r e n t l y
m a i n t a i n e d b y t h e D i s t r i c t ; a n d
1 . 5 T h e C i t y a n d t h e D i s t r i c t b o t h u s e t h e C i t y ' s w a s t e w a t e r t r e a t m e n t p l a n t t o t r e a t w a s t e w a t e r
f r o m t h e i r r e s p e c t i v e w a s t e w a t e r c o l l e c t i o n s y s t e m s ; a n d
1 . 6 T h e r e h a v e b e e n d i s c u s s i o n s a n d n e g o t i a t i o n s b e t w e e n t h e D i s t r i c t a n d t h e C i t y w h i c h h a v e
r e s u l t e d i n t h e p r e p a r a t i o n o f t h e A n n e x a t i o n A g r e e m e n t , a s u b s t a n t i a l l y f i n a l d r a f t o f w h i c h
i s d a t e d M a r c h 1 , 2 0 1 7 , w h e r e b y t h e D i s t r i c t , s u b j e c t t o t h e o c c u r r e n c e o f c e r t a i n c o n d i t i o n s
p r e c e d e n t , w i l l a n n e x t h e A n n e x a t i o n A r e a a n d a c q u i r e t h e C i t y ' s w a s t e w a t e r s y s t e m ,
i n c l u d i n g , b u t n o t l i m i t e d t o , t h e C i t y w a s t e w a t e r t r e a t m e n t p l a n t , a s w e l l a s t h e e x i s t i n g
C i t y w a t e r r e u s e s y s t e m a n d t h e C i t y ' s w a s t e w a t e r c o l l e c t i o n s y s t e m s ( t h e " A n n e x a t i o n " ) ;
a n d
P a g e 2 o f 8
R e s o l u t i o n 1 7 - 1 0 C e r t i f y i n g S p e c i a l A n n e x a t i o n E l e c t i o n o f M a y 1 6 , 2 0 1 7 , a p p r o v a l o f A n n e x a t i o n A g r e e m e n t a n d
A n n e x a t i o n a n d A p p r o v a l o f F i l i n g P e t i t i o n i n C o u r t
1.7 The District has applied for an Idaho Department of Environmental Quality Wastewater
Reuse Permit (the "Reuse Permit") to allow the District to land apply treated reuse water
from the wastewater treatment plant on farms and ranches owned by local land owners, and
the Board has determined such land application of reuse water to be in the best interest of
the persons and properties who receive sewer services from the District and those in the
Annexation Area; and
1.8 The Reuse Permit cannot be issued until Annexation has occurred and the District has
operational responsibility for or ownership of the System (as defined below in the District's
Bond Election question); and
1.9 Certain improvements are necessary for the issuance of the Reuse Permit (the
"Improvements") and to ensure the continued operation and vitality of the System, and the
Board has determined and the Council agrees that the acquisition and construction of the
Improvements best satisfies this need; and
1.10 The Improvements shall consist of (i) construction of a new water reuse pipeline and related
appurtenances, including but not limited to, site improvements, pressure to gravity structure,
turnouts, fittings and valves, and demolition of the existing mixing station and influent pipe,
together with all expenses incident thereto, and (ii) improvements to the wastewater
treatment plant, including but not limited to, the removal of solids from the treatment
lagoons, sand filter repairs, aeration system repairs, headwork improvements, relining of
the storage reservoir, communication system improvements, disinfection system repairs,
450 Pump Station repairs, and all related equipment and expenses incident thereto; and
1.11 The District does not currently have funds available to pay the costs of the Improvements;
and
1.12 It is the Council's intent, in consideration of its transfer to the District of its wastewater
system assets (the "Assets" as further defined in the Annexation Agreement), that the
transfer must be pursuant to the Annexation Agreement which provides for the retirement
or payment of the City's obligations with respect to the Idaho Bond Bank Authority
Revenue Bonds, Series 2004A (the "City 2004 Bonds") and the Idaho Bond Bank Authority
Revenue Bonds, Series 2008B (the "City 2008 Bonds") at the time of Annexation; and
1.13 The District does not currently have funds available to pay the costs of acquisition by the
District of the Assets, and, in connection therewith, the funds to retire the City's outstanding
obligations with respect to the City 2004 Bonds and City 2008 Bonds as required by the
Annexation Agreement; and
1.14 The District intends to finance the design, acquisition and construction of the Improvements
and the acquisition by the District of the Assets (collectively, the "Project"), through the
issuance of District revenue bonds pursuant to the provisions of Sections 42-4101 through
42-4115, inclusive, Idaho Code, as amended, the applicable provisions of chapter 32, Title
42, Idaho Code, and chapters 2 and 9, Title 57, Idaho Code; and
Page 3 of 8
Resolution 17-10 Certifying Special Annexation Election of May 16, 2017, approval of Annexation Agreement and
Annexation and Approval of Filing Petition in Court
1.15 Pursuant to Idaho Code Section 42-3240(b), the District and the City properly noticed and
held a joint public hearing on March 20, 2017 (the "Joint Public Hearing") to receive
public testimony on the proposed Annexation; and
1.16 The Council and the Board conducted the Joint Public Hearing as scheduled on March 20,
2017, at which time public comment was received relating to the proposed Annexation; and
1.17 Pursuant to the provisions of Idaho Code Section 42-3240, after the Joint Public Hearing,
the Council and the Board, by majority vote of each governing body, resolved to submit the
proposed Annexation to the qualified electors of the City and the District; and
1.18 The District duly called and held certain special elections on May 16, 2017, at which there
was submitted to the qualified electors of the District the following propositions:
(i)
As to Annexation (the "District Annexation Election"):
Shall the area comprising the existing City of McCall wastewater service
area (the "Annexation Area") be annexed into the Payette Lakes Recreational
Water and Sewer District, Valley County, Idaho (the "District") pursuant to
the Agreement of Annexation Plan, Property Transfer and Agreement of
Operations subject to Conditions Precedent by and between the City of
McCall and the District in the form on file with the District (the "Annexation
Agreement")?
(ii) As to the Bonds (the "Bond Election");
Shall the board of directors (the "Board") of the Payette Lakes Recreational
Water and Sewer District, Valley County, Idaho (the "District") be
authorized to issue and sell negotiable revenue bonds of said District in the
principal amount not to exceed $22,070,000.00 (the "Bonds") for the
purpose of financing:
(i)
the design, acquisition and construction of certain capital
improvements to the District's post -annexation wastewater treatment
system and water reuse system, including construction of a new water
reuse pipeline (collectively, the "System"), and
(ii) the acquisition by the District of City of McCall (the "City")
wastewater system assets and, in connection therewith, provide funds
to retire the City's outstanding obligations with respect to the Idaho
Bond Bank Authority Revenue Bonds, Series 2004A and Idaho Bond
Bank Authority Revenue Bonds, Series 2008B;
and to pay expenses properly incident thereto including costs of issuance of
the Bonds, said Bonds due in such installments as fixed by the Board, the
Page 4 of 8
Resolution 17-10 Certifying Special Annexation Election of May 16, 2017, approval of Annexation Agreement and
Annexation and Approval of Filing Petition in Court
last installment due and payable not more than twenty-five (25) years from
the date of the Bonds, as more fully provided in Resolution No. 2017-2
adopted by the Board on March 22, 2017, provided however that the Board
shall be empowered to issue the Bonds pursuant to this authorization only
upon the effectiveness of the annexation of the existing McCall wastewater
service area into the District?
; and
1.19 The City duly called and held a special election on May 16, 2017, at which there was
submitted to the qualified electors of the City the following proposition (the "City
Annexation Election"):
Shall the area comprising the existing City of McCall wastewater service
area (the "Annexation Area") be annexed into the Payette Lakes Recreational
Water and Sewer District, Valley County, Idaho (the "District") pursuant to
the Agreement of Annexation Plan, Property Transfer and Agreement of
Operations subject to Conditions Precedent by and between the City of
McCall and the District in the form on file with the City (the "Annexation
Agreement")?
; and
1.20 The Commissioners of Valley County, Idaho, on May 22, 2017, certified and issued a
Statement of Election Results that 74.78% of the votes cast at the District Annexation
Election and 70.70% of the votes cast at the City Annexation Election were cast in favor of
said propositions, resulting in voter approval of and authorization for Annexation pursuant
to the terms and conditions of the Annexation Agreement; and
1.21 In accordance with Idaho Code Section 34-1410, the Council has received from the City
Clerk, the county clerk's certification of the City Annexation Election results and the
Council must now issue the appropriate certificate of this special election; and
1.22 The Commissioners of Valley County, Idaho, on May 22, 2017, certified and issued a
Statement of Election Results that 73.72 % of the votes cast at the Bond Election were cast
in favor of said proposition, resulting in voter approval of and authorization for issuance of
the Bonds (as defined in the Bond Election question) for the purpose set forth in said
proposition and to pay the costs of issuance thereof; and
1.23 Pursuant to Idaho Code Section 42-3240(2), the District and the City intend to jointly file
the Petition with the District Court of the Fourth Judicial District of the State of Idaho, in
and for the County of Valley (the "District Court"), together with a certified copy of this
Resolution, a certified copy of the District's resolution approving annexation, certified
results of the District Annexation Election, the City Annexation Election and the Bond
election and all other necessary documentation requested by the District Court; and
Page 5 of 8
Resolution 17-10 Certifying Special Annexation Election of May 16, 2017, approval of Annexation Agreement and
Annexation and Approval of Filing Petition in Court
1.24 Upon satisfying itself that the required conditions of Idaho Code Section 42-3240 exist, the
District Court shall enter an order (the "Judgment") approving and authorizing Annexation
pursuant to the Annexation Agreement and establishing an effective Annexation date, which
order shall be recorded with the Valley County recorder, filed with the Valley County
assessor and filed with the Idaho State Tax Commission within thirty (30) days following
the effective Annexation date; and
1.25 Pursuant to the authority granted by the qualified electors of the City, the Council now
desires to approve and authorize Annexation upon the receipt of a favorable Judgment on
the Petition; and
1.26 The Council desires to approve the form of the Petition presented at this meeting and
attached hereto as Exhibit A and to authorize the filing of the Petition in the District Court;
and
1.27 That by reason of the approval of the District Annexation Election, the City Annexation
Election and the Bond Election and the approval of the Annexation Agreement by the Board,
subject to the approval of the District Court the following conditions will all then exist:
i. The District is capable of providing all the essential functions of the Existing City
Sewer System (as defined in the Annexation Agreement);
ii. The District has agreed to assume and perform the essential Existing City Sewer
System functions;
iii. The District has or is acquiring sufficient assets, infrastructure and other resources
to perform the essential operations of the Existing City Sewer System;
iv. Provisions have been made for the retirement, payment or assumption of any debt,
bonds or other liabilities and obligations of the Existing City Sewer System;
v. Provisions have been made for the liquidation and disbursement of the Existing City
Sewer System and infrastructure not intended to be transferred;
vi. Provisions of the Annexation Agreement set forth requirements for post -annexation
or withdrawal operations and also provide for director zones;
vii. That notice of the proposed Annexation has been published once a week for two (2)
consecutive weeks preceding the March 20, 2017 Joint Public Hearing in THE STAR -
NEWS, a newspaper of general circulation in the City and the District; and
viii. That the District Annexation Election and the City Annexation Election have been
held, and the question of Annexation pursuant to the Annexation Agreement has
been approved by a majority of the qualified electors of the District and a majority
of the qualified electors of the City voting on the issue.
Page 6 of 8
Resolution 17-10 Certifying Special Annexation Election of May 16, 2017, approval of Annexation Agreement and
Annexation and Approval of Filing Petition in Court
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of McCall as
follows:
Section 2: Receipt of Certification of Special Election Results Annexation Election and
issuance of Certificate:
2.1 That at the Special Annexation Election held, pursuant to Idaho Code Section 42-3240
(1)(c), on May 16, 2017 has been canvassed by the Valley County Commissioners and
certified by the County Clerk to the City Clerk and received by the City Council and
following are said election results:
292 IN FAVOR OF ANNEXATION OF THE ANNEXATION
AREA INTO THE DISTRICT PURSUANT TO THE TERMS
AND CONDITIONS SET FORTH IN THE ANNEXATION
AGREEMENT.
121 AGAINST ANNEXATION OF THE ANNEXATION AREA
INTO THE DISTRICT PURSUANT TO THE TERMS AND
CONDITIONS SET FORTH IN THE ANNEXATION
AGREEMENT.
2.2 The Council issues the Certificate of the May 16, 2017 Special Annexation Election
Question in accordance with the Valley County Commissioners canvass as certified by the
County Clerk to the City Clerk in the form attached marked as Exhibit C and authorizes the
Mayor to sign the same.
Section 3: Approval of Agreement of Annexation and annexation:
3.1 The Annexation Agreement is hereby approved and the Mayor is authorized to sign and the
City Clerk to attest and bind, subject to District Court approval, the City to its terms and
conditions; and
3.2 Subject to the terms of the Annexation Agreement and District Court approval, Annexation
into the District of the Annexation Area as more specifically defined and described in
Section 1.3 of the Annexation Agreement is hereby approved.
Section 4: Authorization of filing Petition in Fourth District Court:
4.1 The Petition on behalf of this City and the District is to be filed in the Fourth District Court
of the State of Idaho in and for the County of Valley pursuant to Idaho Code Section 42-
3240(2), in substantially the form attached marked as Exhibit B together with any minor
edits authorized by the Mayor and the Chairman of the District Board of Directors in
consultation with the City Attorney, District Bond Counsel and the District's attorney, is
authorized to be prepared and filed forthwith.
Page 7of8
Resolution 17-10 Certifying Special Annexation Election of May 16, 2017, approval of Annexation Agreement and
Annexation and Approval of Filing Petition in Court
Section 5: Directions to the City Clerk:
5.1 That the City Clerk certify this Resolution for purposes of the Petition herein approved and
to the Administrator of the District and retain the original in the official records of the City.
Section 6: Date of Effect:
6.1 This Resolution shall be in full force and effect after its passage and approval.
ADOPTED by the City Council of the City of McCall, Valley County, state of Idaho.
APPROVED:
Dated: /%1/l1,( 25 , 2017 Signed: �i--
o
ATTEST:
I certify that the above Resolution was duly adopted by the City Council of the City of McCall on
/114 , 2017 by the following vote:
By:
BessieJo Wa er, City erk
s
os
Ayes: 3
Noes:
bsent:
Page 8 of 8
Resolution 17-10 Certifying Special Annexation Election of May 16, 2017, approval of Annexation Agreement and
Annexation and Approval of Filing Petition in Court
CITY OF MC CALL
VALLEY COUNTY, IDAHO
CERTIFICATE OF MAY 16, 2017 SPECIAL ANNEXATION ELECTION
The City Council of the City of McCall in Valley County, state of Idaho, does hereby issue
this certificate of special annexation election held on the 16th day of May, 2017 which approved
by a more than majority vote [70.70% of the votes cast were cast in favor] the following special
election question:
Shall the area comprising the existing City of McCall wastewater service
area (the "Annexation Area") be annexed into the Payette Lakes
Recreational Water and Sewer District, Valley County, Idaho (the
"District") pursuant to the Agreement of Annexation Plan, Property
Transfer and Agreement of Operations subject to Conditions Precedent by
and between the City of McCall and the District in the form on file with the
City (the "Annexation Agreement")?
IN WITNESS WHEREOF AND BY CITY COUNCIL RESOLUTON NO. 17-10 duly
adopted and approved on May 25, 2017, I have hereunto set my hand effective the 25th day of
May, 2017.
CITY OF MC CALL
VALLEY COUNTY, IDAHO