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Home My Public Portal AboutResolution 28-89 Authorizing the Mayor and City/Clerk to execute relating to the City of McCall recreational revenue bondsRESOLUTION NO. a -89 A RESOLUTION RELATING TO THE CITY OF McCALL RECREATIONAL REVENUE BONDS, SERIES 1989, IN THE PRINCIPAL AMOUNT OF $450,000; AUTHORIZING THE MAYOR AND CITY ADMINISTRATOR/CITY CLERK TO EXECUTE, ON BEHALF OF THE CITY OF McCALL, CERTAIN REPRESENTATIONS AND COVENANTS WITH RESPECT TO SAID BONDS; PROVIDING FOR OTHER MATTERS RELATING THERETO; AND PROVIDING EFFECTIVE DATE WHEREAS, the City of McCall, Idaho (the "City"), has heretofore, by adoption of Ordinance No. 554, adopted by the City Council on July 14, 1989, authorized the issuance, sale, and delivery of City of McCall Recreational Revenue Bonds, Series 1989, in the principal amount of $450,000 (the "Bonds"); and WHEREAS, the Bonds are not general obligations of the City, but are payable solely from a special fund of the City and are secured by a pledge of the Net Revenues of the City's public golf course facility, as is more particularly set forth in Ordinance No. 554; and WHEREAS, the City's public golf course facility is presently managed and operated by an independent contractor pursuant to a written Golf Course Contractor Agreement dated February 12, 1987 (the "Agreement"), the initial term of which Agreement expires on February 12, 1990, and which Agreement is renewable unless terminated by either party; and WHEREAS, the law firm of Lindsay, Hart, Neil & Weigler, of Boise, Idaho, as Bond Counsel to the City, has advised the City that certain covenants and actions on the part of the City with respect to the Agreement are necessary in order for Bond Counsel to .render an unqualified opinion that the Bonds are not "private activity bonds" (and therefore that the interest on the Bonds is exempt from federal income taxation) within the meaning of Section 141 of the Internal Revenue Code of 1986; and WHEREAS, the City Council desires and intends to take such steps and to authorize and require such action as may be necessary to prevent the Bonds from being deemed to be "private activity bonds" for purposes of federal income taxation of the interest thereon. NOW, THEREFORE, BE IT RESOLVED ,BY THE CITY COUNCIL OF THE CITY -4r OF McCALL, IDAHO: i Section 1: The Mayor and City Administrator/City Clerk of thev are hereby authorized and directed to execute, on behalf of the Page 1 City, at or before the time of delivery of, the Bonds, such representations, covenants, or other assurances to owners and purchasers of the Bonds as shall be reasonably required by Bond Counsel in order to assure the owners and purchasers of the Bonds: A. That the City will, not later than the date of delivery of the Bonds, cause notice to be served upon the independent contractor that the Contract will not be renewed by the. City in its present form after February 12, 1990. B. That commencing from and after February 12, 1990, the City will either (1) itself operate the public golf course facility, or (2) enter into a "qualified management contract," within the meaning of the Internal Revenue Code of 1986, for the public golf course facility, which shall provide that the golf course shall be open to thegeneral public, that no part of the compensation to the manager shall be based upon the net profits of the facility, and that at least 5Q% of such compensation shall be based upon a fixed fee.1 Section 2: The Mayor and City Administrator/City Clerk are further authorized and directed to take all such action and to execute all suchinstruments as shall be necessary or expedient to carry out the intent of this Resolution. DATED this 26t day of September, 1989. CITY OF McCALL Valley County, Idaho By �N Page 2 .„4 z.4,2_,,;47- O f crf Mayor ROBERT H. REMAKLUS Attorney at Law P. O. BOX 759 - CASCADE, IDAHO 83611 MESSAGE REPLY lor TO SIGNED DATE SIGNED FORM AVAILABLE FROM GRAYARC CO., INC. RR9 Twort AVM ._ R YI VN N V 117A7 THIS COPY FOR PERSON ADDRESSED " !" .0 ." " - (1,1) I1J / / ( LINDSAY, HART, NEIL & WEIOLER MICHAEL C. Moo BE S 0 7 9/ "1,7 'ArrSefr)," .0))N L sec_ 7.-; • 2 h - LINDSAY, riAKi, Neu, & WCIOLER MICHAEL C. MOOEE 6,L C;7 6 ,-, f ), 0 1- I ikei7 , h ��o r� ✓'�7 / /J / ea1�•_ T i cOLZ.�,,r �ri1.:L L•�,l'-a�'� -1� RESOLUTION NO. -89 A RESOLUTION RELATING TO THE CITY OF McCALL RECREATIONAL REVENUE BONDS, SERIES 1989, IN THE PRINCIPAL AMOUNT OF $450,000; AUTHORIZING THE MAYOR AND CITY ADMINISTRATOR/CITY CLERK TO EXECUTE, ON BEHALF OF THE CITY OF McCALL, CERTAIN. REPRESENTATIONS AND COVENANTS WITH RESPECT TO SAID BONDS; PROVIDING FOR OTHER MATTERS RELATING THERETO; AND PROVIDING EFFECTIVE DATE WHEREAS, the City of McCall, Idaho (the "City"), has heretofore, by adoption of Ordinance No. 554, adopted by the City Council on July 14, 1989, authorized the issuance, sale, and delivery of City of McCall Recreational Revenue Bonds, Series 1989, in the principal amount of $450,000 (the "Bonds"); and WHEREAS, the Bonds are not general obligations of the City, but are payable solely from a special fund of the City and are secured by a pledge of the Net Revenues of the City's public golf course facility, as is more particularly set forth in Ordinance No. 554; and WHEREAS, the City's public golf course facility is presently managed and operated by an independent contractor pursuant to a written Golf Course Contractor Agreement dated February 12, 1987 (the "Agreement"), the initial term of which Agreement expires on February 12, 1990, and which Agreement is renewable unless terminated by either party; and WHEREAS, the law firm of Lindsay, Hart, Neil & Weigler, of Boise, Idaho, as Bond Counsel to the City, has advised the City that certain covenants and actions on the part of the City with respect to the Agreement are necessary in order for Bond Counsel to render an unqualified opinion that the Bonds are not "private activity bonds" (and therefore that the interest on the Bonds is exempt from federal income taxation) within the meaning of Section 141 of the Internal Revenue Code of 1986; and WHEREAS, the City Council desires and intends to take such steps and to authorize and require such action as may be necessary to prevent the Bonds from being deemed to be "private activity bonds" for purposes of federal income taxation of the interest thereon. NOW, THEREFORE, BE IT OF McCALL, IDAHO: Section 1: The Mayor are hereby authorized and Page 1 RESOLVED BY THE CITY COUNCIL OF THE CITY and City Administrator/City Clerk of the directed to execute, on behalf of the City, at or before the time of delivery of the Bonds, such representations, covenants, or other assurances to owners and purchasers of the Bonds as shall be reasonably required by Bond Counsel in order to assure the owners and purchasers of the Bonds: A. That the City will, not later than the date of delivery of the Bonds, cause notice to be served upon the independent contractor that the Contract will not be renewed by the City in its present form after February 12, 1990. B. That commencing from and after February 12, 1990, the City will either (1) itself operate the public golf course facility, or (2) enter into a "qualified management contract," within the meaning of the Internal Revenue Code of 1986, for the public golf course facility, which shall provide that the golf course shall be open to the general public, that no part of the compensation to the manager shall be based upon the net profits of the facility, and that at least 50% of such compensation shall be based upon a fixed fee. Section 2: The Mayor and City Administrator/City Clerk are further authorized and directed to take all such action and to execute. all such instruments as shall be necessary or expedient to carry out the intent of this Resolution. DATED this 21st day of September, 1989. CITY OF McCALL Valley County, Idaho ATTEST: City Clerk Page 2 By Mayor