HomeMy Public PortalAboutResolution 07-09 Employers Insurance of Wausau vs. the City of McCallRESOLUTION NO. 07-9
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF McCALL, IDAHO,
RELATED TO THE CASE OF EMPLOYERS INSURANCE OF WAUSAU VS. THE
CITY OF McCALL, ET AL, CASE NUMBER CV-01-629-S-BLW.
WHEREAS, on April 23, 2007 the Honorable B. Lynn Winmill issued a Memorandum
Decision and Order requiring the City of McCall to take specific actions to address the payment
of judgments entered against the City in favor of Wausau and St. Clair Contractors; and
WHEREAS, the City Council has sought guidance from its staff, attorneys and financial
advisors; and
WHEREAS, the City Council recognizes that it is in the best interests of the City and its
citizens to seek to satisfy the City's obligations under all applicable laws; and
WHEREAS, the City Council believes that their fiduciary responsibility to the citizens
of McCall includes ensuring that no expenditures exceed the amounts authorized by Idaho law;
and
WHEREAS, it is necessary to take numerous steps to deal with the judgments.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY
COUNCIL OF THE CITY OF McCALL, IDAHO:
SECTION 1: City staff shall immediately initiate the budget amendment process to
allow the current determined General Fund surplus funds to be paid to St. Clair Contractors for
application on its judgment.
SECTION 2: City staff shall immediately initiate the process to implement I.C. § 50-
1006 within the restraints imposed by I.C. § 63-802 to borrow the maximum amount for payment
on the judgments.
SECTION 3: City staff and attorneys for the City shall immediately begin the process
required to seek judicial confirmation in state court for long-term borrowing of funds sufficient
to pay the judgments.
SECTION 4: The decision of the City Manager authorizing attorneys for the city to file
an appeal of Judge Winmill's April 23, 2007 Memorandum Decision and Order, seeking among
other things, a clarification of the maximum amount payable under I.C. § 50-1006 and the effect
of I.C. § 63-802, is hereby ratified.
SECTION 5: Richard Skinner and the firm, Skinner Fawcett, shall be retained as bond
counsel in connection with any and all borrowing authorized by this Resolution.
Resolution 07-9 1
SECTION 6: City staff shall initiate a complete budget review of all city finances and
assets to provide information to the City Council on possible sources of funds to reduce the
amount that must be borrowed.
SECTION 7: The attorneys for the City are authorized to seek a dismissal, without
prejudice, of the Declaratory Judgment action filed in state court against Wausau Insurance and
St. Clair Contractors, which action was removed to federal court as Case No. CV 07-0177-BLW.
SECTION 8: EFFECTIVE DATE: This Resolution shall be in full force and effect
immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF McCALL, IDAHO, this � ijT►, day of
YY1 u , 2007.
APPROVED BY THE MAYOR OF THE CITY OF McCALL, IDAHO, this ,2'17fi day
of
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ATTEST:
, 2007.
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�,v' �Joe E. York, Ci Clerk
William A. Robertson, Mayor
Resolution 07-9 2