HomeMy Public PortalAboutResolution 20-91 Replacing certain water mains ---
RESOLUTION NO. 20"
A resolution regarding the McCall City Water System; making
certain findings and providing that the City of McCall has
elected to replace certain water mains to protect the public
health and safety, providing that costs thereof shall be paid by
borrowing required funds from West One Bank, Idaho N. A. ,
evidenced by a promissory note, subject to judicial confirmation
and authorizing and directing the City Attorney to file a petition
in the District Court of the Fourth Judicial District of the State
of Idaho, in and for the County of Valley, seeking a judicial
examination and determination of the validity of its authority to
execute such note, incur such debt, pledge its water revenues and
that such indebtedness will be a valid obligation of the City of
McCall.
The following findings are hereby made :
1. The City of McCall owns and operates a municipal water
system furnishing domestic water and fire protection to the City
and its inhabitants.
2. The City of McCall, Idaho, has engaged professional
engineers, to-wit : J-U-B Engineers, Inc. , to evaluate the City' s
water system. The said engineers completed their evaluation and
published their findings in the form of a Water Master Plan which
was approved and adopted by the City Council, December, 1988, and
amended August, 1990. The following water main replacements were
a part of the recommendations of the engineers in the said Water
Master Plan as necessary to provide safe drinking water in
sufficient quantity and at sufficient pressure for public
consumption and for fire fighting :
a. Mission Street - Replace 1240 feet of 6-inch and 8-inch
water mains with 10-inch water main. This main will provide
adequate fire flows to the McCall-Donnelly Elementary and High
schools.
b. Deinhard Lane and Thula Street - Replace 2450 feet of
4-inch water main with 8-inch water main.
c. Thula Street and Floyde Street - Replace 700 feet of 4-inch
water main with 8-inch water main.
d. Floyde Street. to Sampson Trail - Replace 67 feet of 6-inch
• water main with 8-inch water main. Items 2, 3 and 4 above will
provide adequate water for fire fighters at the McCall Care
Center, a nursing home.
e. Third Street, Timm Street to Colorado Street - Replace 1277
feet of 2-inch water main with 6-inch water main. This
replacement will provide fire protection for a number of busineses
S. offices along Highway 55.
3. The water main replacements above enumerated and necessary
repairs and work related thereto are required to protect the
' health of the public' s drinking water supply, as mandated by the
United States Government in the adoption of the Safe Drinking
Water Act of 1974.
4. The Idaho Survey and Rating Bureau have examined the
foregoing water mains and have identified them to be inadequate to
provide water to a conflagration.
5. The water main replacements herein described are most
economically and practically completed as a single project.
6. Upon competitive bidding under the provisions of Section
50-341, Idaho Code, the lowest and best bid for the above main
replacements was submitted by Brogan Construction Company of
Caldwell, Idaho, in the amount of $354, 588. 00 and an additional
sum of $55, 247. 00 is required for engineering services and other
costs, making in all a total project cost of $409, 835. 00.
7. The costs for replacement of such mains as set forth in
item 6 above, exceed the yearly income of the municipal water
system.
8. West One Bank, Idaho, N. A. , has offered to finance the
replacement of such mains and engineering and related costs on an
amortized basis over a seven (7) year term bearing interest at
7. 20% per annum, according to the terms of that certain promissory
note annexed hereto as Exhibit I and by reference incorporated
herein.
9. West One Bank, Idaho U. S. , has advised the city that it
shall not advance funds to the city under the promissory note
until the city has obtained judicial confirmation and approval of
such note under the provisions of Section 7-1301 et seq. , Idaho
Code.
10. The proposed expenditure is necessary to protect the health
and safety of the inhabitants of the Petitioner and to comply with
state and federal health and drinking water standards.
11. The proposed expenditure is for the purpose of repairing,
rehabilitating, maintaining, and replacing existing city services
in order to render them serviceable, as opposed to the
construction of wholly new facilities.
12. The amount of the proposed indebtedness is not
disproportionate to the Petitioner' s overall budget for the year.
13. The proposed Improvements are authorized by the general
laws of the state.
14. Petitioner has operated the existing System for many years
and has determined that the Improveents are indispensable to the
y •
efficient continued operation of the System.
15. The replacement of such water mains constitute an integral
part of the operation and maintenance of the McCall Municipal
Water System and as such the cost thereof is an ordinary and
necessary expense of the City within the meaning and
interpretation of Article 8, Section 3 of the Constitution of the
State of Idaho, and incurring such indebtedness does not require
the assent of the qualified electors of the City at a bond
election.
16. That the City shall pledge the revenues from the City
water system to the payment of said promissory note over the term
thereof .
NOW, THEREFORE, Be it resolved by the City Council of the City
of McCall, Idaho, as follows :
1. That the City of McCall has elected to proceed to replace
said water mains, employ engineers to do and perform the necessary
engineering services in connection therewith, to protect the
public health and safety.
2. That said promissory note is hereby approved and the Mayor
and City Clerk be, and they are hereby authorized and directed to
execute the same to West One Bank, Idaho, N. A. , in the form hereto
annexed as Exhibit I, subject to a judicial confirmation under the
provisions of Section 7-1301, et seq. , Idaho Code.
3. The City hereby pledges the revenues of the City water
system to the payment of said promissory note over the term
thereof .
4. That ROBERT H. REMAI(LUS, Lawyer P. A. , McCall City Attorney,
be, and is hereby authorized and directed to file a petition
pursuant to Section 7-1301, et seq. , Idaho Code, in the District
Court of the Fourth Judicial District of the State of Idaho, in
and for the County of Valley, for a judicial examination and
determination of the validity of the power and authority of
Petitioner (a) to execute such promissory note to West One Bank,
Idaho, N. A. , (b) to incur indebtedness thereunder without the
approval of the electors of Petitioner at a special election as an
"ordinary and necessary expense" and to issue its note to said
bank, and (c) to pledge its water revenues to the payment of such
indebtedness; and a declaration that such evidence of indebtedness
of Petitioner, when issued pursuant to such authority, will be a
valid and binding special obligation of Petitioner.
Dated this 10th day of October, 1991.
ria o r
Att -t
City 7 erk
4 r
UNITED STATES OF AMERICA
STATE OF IDAHO
City of McCall, Valley County, Idaho
PROMISSORY NOTE
•
FOR VALUE RECEIVED, the City of McCall (the "city's) , a
political subdivision of the State of Idaho, acknowledges
itself owe and promises to pay West One Bank, Idaho, N.A. ,
McCall, Idaho, on or before the 16th day of December,1998,
the principal amount of Four Hundred Nine Thousand, Eight
Hundred Thirty-Five and no/100 DOLLARS ($409,835.00) ,
pursuant to Resolution No.409>authorizing a maximum amount of
$409,835.00, together with interest thereon, at the rate of
7.20 percent per annum, on the unpaid principal balance.
The principal of and interest on this note are payable in
lawful money of the United States of America at the McCall
office of West One Bank.
The City shall make payment of the outstanding principal
balance, together with accrued interest, in 14 equal
semiannual payments of $37,780.00 each. The City's first
payment is due June 16,1992, and all subsequent payments are
due on the 16th day of December/June thereafter. City's
final payment will be due on or before December 16,1998 and
will be for all principal and all accrued interest not yet
paid. Unless otherwise agreed on or required by applicable
law, payments will be applied first to accrued unpaid
interest, then to principal and any remaining amount to any
unpaid collection costs and late charges.
The outstanding balance on this note may be prepaid in its
entirety, plus accrued interest, on any scheduled payment
date without penalty. .
This note is a special obligation of the City, payable from
the City water system revenues and the City hereby pledges
such revenues for payment of this note.
The city will be considered in default if any of the
following events occur: (a) City fails to make any payment
when. due. (b) City breaks any promise City has made to Bank,
or City fails to perform promptly at the time and strictly in
the manner provided in this Note (c) Any representation or
statement made or furnished to Bank by City or on City's
behalf is false or misleading in any material respect. (d)
City becomes insolvent, a receiver is appointed for any part
of City's property, City makes an assignment for the benefit
of creditors, or any proceeding is commenced either by City
EXHIBIT I, P. 1
or against City under any bankruptcy or insolvency laws.
Upon default, Bank may declare the entire unpaid principal
;balance on this Note and all accrued unpaid interest
immediately due, without notice, and then City will pay that
amount. Bank may hire or pay someone else to help collect
this Note if City does not pay. City also will pay Lender
that amount. This includes, subject to any limits under
applicable law, Lender's reasonable attorney's fees and legal
expenses whether or not there is a lawsuit, including
reasonable attorney's fees and legal expenses for bankruptcy
proceedings (including efforts to modify or vacate any
automatic stay or injunction) , appeals, and any anticipated
post-judgement collection services. If not prohibited by
applicable law, City also will pay any court costs, in
addition to all other sums provided by law. This Note has
been delivered to Bank and accepted by Bank in the State of
Idaho. If there is a lawsuit, the City agrees upon Bank's
request to submit to the jurisdiction of the courts of Ada
County, the State of Idaho. This Note shall be governed by
and construed in accordance with the laws of the state of
Idaho.
City and Bank agree that the payments hereunder are based
upon their assumption that the interest component payable to .
Bank hereunder is excluded from federal and State of Idaho
Income tax. This exclusion provides the inducement for
Bank's offer of financing at 7.20%. Should the transaction
giving rise to this note be deemed by the State of Idaho or
the federal government not to be exempt from income taxation,
City agrees that it will pay as additional stuns hereunder
sufficient funds to adjust the interest to be paid hereunder
to an amount equivalent to the income contemplated hereunder
as a tax exempt transaction. Said adjustment shall be
retroactive and apply to any installments already paid by
City to Bank to the extent that any ruling by any such taxing
authority requires the payment of additional tax upon
payments already received by Bank. This indemnification
shall survive the full performance of this promissory .note.
Bank may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. City and any
other person who signs, guarantees or endorses this Note, to
the extent allowed by law, waive presentment, demand for
payment, protest and notice of dishonor. Upon any change in
the terms of thisallote, and unless otherwise expressly stated
in writing, no party who signs this Note, whether as maker,
guarantor, accommodation maker or endorser, shall be released
from liability. All such parties agree that Bank may renew,
extend (repeatedly and for any length of time) or modify this
loan, or release any party or guarantor; or impair, fail to
realise upon or perfect Bank's security interest in the
collateral; and take any other action deemed necessary by
' Bank without the consent of or notice to anyone.
EXHIBIT I, P. 2 •
• r � h
PRIOR TO SIGNING THIS NOTE, Tut; CITY READ AND tNDERSTOOD ALL
THE PROVISIONS OF THIS NOTE. THE CITY AGREES TO THE TERMS OF
i
THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE
NOTE..
Signed and executed this 16th day of December, 1991. •
1'Ht` CITY OF McCALL, VALLEY COUNTY, IDAHO
111111
Mayor, ty of 711 Call
City'TreasUr,r
(71
El/(1 F
City Clerk
EXHIBIT I, P. 3
CERTIFICATE OF RECORDING OFFICER
STATE OF IDAHO )
ss
COUNTY OF VALLEY)
I, the undersigned, the duly appointed, qualified, City Clerk of
McCall City, Idaho, do hereby certify the following:
1 . That pursuant to the provisions of Section 50-207,
Idaho Code, I keep a correct journal of the proceedings of the
Council of McCall City, Idaho and that I am the statutory
custodian of all laws, ordinances and resolutions of said City.
2 . That the attached Resolution No. 20-91 is a true and
correct copy of a resolution passed at a regular meeting of the
Council of McCall City held on October 10, 1991, and duly
recorded in my office; and
3 . That said regular meeting was duly convened and held in
all respects in accordance with law and to the extent required
by law, due and proper notice of such meeting having been given;
that a legal quorum was present throughout the meeting and that
a legally sufficient number of members of the Council of McCall
City voted in the proper manner and for the passage of said
resolution; and that all other requirements and proceedings
incident to the proper adoption and passage of said resolution
have been duly fulfilled, carried out and observed; and that I
an authorized to execute this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of the City of McCall, Idaho, this / 6-7:_t")-
day
5— --
day of (Ocv (oe c_ , 199
Arthur J. Sc idt, City Clerk
(Seal of the City)