HomeMy Public PortalAboutResolution 09-96 Golf Course Irrigation System Improvement FinancingRESOLUTION NO. -96
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCCALL, IDAHO,
MAKING FINDINGS AND DECLARATIONS WITH RESPECT TO THE FINANCING OF
GOLF COURSE IRRIGATION SYSTEM IMPROVEMENTS; APPROVING AND
AUTHORIZING, SUBJECT TO JUDICIAL CONFIRMATION, THE EXECUTION OF A
LOAN AGREEMENT BETWEEN WEST ONE BANK, IDAHO, AND THE CITY OF MCCALL
FOR THE FINANCING OF THE IMPROVEMENTS; 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 municipal golf course for public recreational
purposes, known as the McCall Municipal Golf Course (the "Golf
Course"); and
WHEREAS, the City Council of the City has determined that
certain improvements to the irrigation system for the Golf Course
(the "Improvements") are required for the continued operation of
the Golf Course; and
WHEREAS, the estimated cost of the Improvements to the City is
$750,000; 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 Council has determined
that it is necessary to finance up to $650,000 the cost thereof
from future years' Golf Course revenues; and
WHEREAS, the Council has further determined that it is in the
best interests of the City to finance the cost of the Improvements
through a loan from West One Bank, Idaho (the "Bank"), and the City
has made application to the Bank for such loan; and
WHEREAS, the Bank has offered to loan up to $650,000 to the
City for the Improvements, to be repaid by the City from Golf
Course revenues over a 15-year term, subject to the condition that
the City first obtain judicial confirmation of the validity of the
proposed loan agreement pursuant to the Idaho Judicial Confirmation
Law, the same being Title 7, Chapter 13, Idaho Code; and
WHEREAS, the financing of the costs of the Improvements in the
manner described would create an indebtedness or liability of the
City exceeding the current year's revenues; and
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WHEREAS, the Council has determined that the cost of the
Improvements, and the proposed loan obligation 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 9, 1996, held and conducted a
public hearing, pursuant to at least fifteen (15) days' published
notice 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 agreement and the incurring of such indebtedness as
an "ordinary and necessary expense" within the meaning of Article
8, Section 3, of the Idaho Constitution, pursuant to the Judicial
Confirmation Law; and
WHEREAS, following such public hearing, 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
Golf Course 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 are hereby adopted as
findings of fact by the Council.
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 Agreement, substantially in the form which is annexed
hereto as Exhibit "A" (the "Loan Agreement"), is hereby approved,
and the Mayor is hereby authorized to execute the same for and on
behalf of the City. The Mayor is further authorized to execute, on
behalf of the City, a promissory note as evidence of the
indebtedness incurred pursuant to the Loan Agreement. The
appropriate officials of the City are hereby further authorized to
execute such 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
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approved, and the Mayor is authorized to execute the verification
of the same.
Section 4: The law firm of Moore & McFadden, Chartered, of
Boise, Idaho, as special counsel to the City, is hereby authorized
to file said 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 Agreement, the indebtedness incurred thereby, and any
evidence of indebtedness executed pursuant thereto, for the
financing of the Improvements, constitute an ordinary and necessary
expense 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:
A. The proposed expenditure is necessary to protect the
health and safety of the inhabitants of the City.
B. The proposed expenditure is for the purpose of replacing,
maintaining, and extending existing City services in
order to render them serviceable, as opposed to the
construction of wholly new facilities.
C. The proposed Improvements are authorized by the general
laws of the State.
D. The City has operated the existing Golf Course for many
years and has determined that the Improvements are
indispensable to the efficient continued operation of the
Golf Course.
E. Acquisition of the Improvements would result in
significant future cost savings to the City and to the
users of the Golf Course.
F. The amount of the proposed indebtedness is not
disproportionate to the City's overall budget for the
year.
G. Acquisition of the Improvements would protect and enhance
recreational property of the City in which the City has
a significant economic investment.
Page 3
Section 6: This Resolution shall take effect and be in force
immediately upon its passage and approval.
DATED this 23rd day of May, 1996.
CITY OF MCCALL
Valley County, Idaho
4/1/
7/47
By
Mayor
ATTEST:
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,04/29/96 15: 57 f2208 383 7987 INVESTbfENTS OPS ! R 1004
Proposal:
The terms of this proposal will expire at 5:00 pm MDT, on May
15, 1996. Please indicate your acceptance of the general terms
outlined above by signing below and returning the original to the
Bank.
UNDER IDAHO LAW, A PROMLSE OR COMMITMENT TO
,LEND MONEY OR TO GRANT OR F.X1EVD CREDIT IN AN
ORIGINAL PRINCIPAL AMOUNT OF FIFTY 7TIOUSAND
DOLLARS ($50, 000) OR MORE, MADE BY A PERSON OR
.ENTITY ENGAGED IN THE BUSINESS OF .LENDING
MONEY OR EXTENDING CREDIT, IS A "COVERED
7RANSACTTON" COVERED TRANSACT70NS MUST BE IN
WRITING AND MUST' BE SIGNED BY THE PARTY
CHARGED` TO BE VALID. SI1iCE 'THIS LOAN LSI FOR AN
AMOUNT OF .FIFTY THOUSAND DOLLARS ($50,000) OR
MORE, IT IS A COVERED TRANSACTION, AND ANY
AGREEMENT CONCERNING THIS LOAN MUST BE IN
WRITING TO BE VALID.
This proposal is offered as an indication of the structure of the financing that we would propose for
this particular project The terms and conditions noted above are subject to various degrees of
negotiation and should the expenditure not be found to "ordinary and necessary" the entire
proposal would need to re-examined. Should you have any questions or concerns about this
proposal please contact me at 208 383-7243.
Very truly yours,
ibrt+itt4
Robert E. I-Eldeman
Vice President, Public Finance
West One Bank, Idaho
ACCEPTED BY:
City of McCall
Title:
cc: lvfichael Moore, Bond Counsel
3
Date: