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HomeMy Public PortalAboutOrd. 855 - Bond OrdinanceBY THE COUNCIL ORDINANCE NO. 855 EXECUTION COPY AN ORDINANCE AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF CITY OF MCCALL REFUNDING BOND, SERIES 2008, AND AUTHORIZING EXECUTION AND DELIVERY OF AN INDENTURE, A LOAN AGREEMENT AND RELATED DOCUMENTS, MAKING FINDINGS IN CONNECTION THEREWITH; AUTHORIZING THE EXECUTION OF AND APPROVING RELATED DOCUMENTS, AGREEMENTS AND ACTIONS; AND PROVIDING FOR A WAIVER OF THE READING RULES AND AN EFFECTIVE DATE. THE CITY OF MCCALL REFUNDING BOND, SERIES 2008 WHEREAS, the City expects to issue and have outstanding its Warrant, Series 2008, the ("Warrant"); and WHEREAS, the City has determined that payments of the judgment financed by the Warrant constitute "ordinary and necessary expenses" under Article VIII Section 3 of the Idaho Constitution; and WHEREAS, in order to restore financial matters relating to the judgment and otherwise improve the City's finances, the City, pursuant to Section 57-504, Idaho Code, as amended (the "Act"), intends to authorize the issuance and sale of its Refunding Bond, Series 2008 (the "Bond" or "Bond") in the aggregate principal amount of not to exceed $7,100,000; and WHEREAS, the proceeds of the Bonds will be applied to refund the Warrant and to pay the costs of issuing the Bonds; and WHEREAS, the Idaho Bond Bank Authority (the "Authority") has approved a Loan to the City to be evidenced by the Bonds and the City and Authority plan to enter into a Loan Agreement between the Authority and the City (the "Loan Agreement") providing for the Loan and purchase of the Bonds; and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of the Bonds, execution of the Loan Agreement and related matters as contemplated by this Ordinance and the documents referred to herein exist, have happened and have been performed in ORDINANCE 855 - PAGE -1 - \\Finance\Users\City Council \Ordinances\Ord. 855 Bond Ordinance.doc due time; form and manner as required by the laws of the State of Idaho, including the Act; and NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF MCCALL, IDAHO, as follows: 1. Pursuant to the Act, title 67, Chapter 87 and the Indenture (hereinafter defined), revenue bonds of the City designated as "City of McCa11 Refunding Bonds, Series 2008" in an aggregate principal amount not to exceed $7,100,000 are hereby authorized to be issued. 2. U.S. Bank National Association, is hereby appointed as the trustee (the "Trustee") for the Bonds as provided for in the_ Trust Indenture between the Trustee and the City (the "Indenture") providing for the issuance of the Bonds in order to refund the Warrant. The proposed form of Indenture between the City and the Trustee are hereby approved in substantially the form presented to this meeting. The Mayor and Treasurer of the City are hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Indenture in substantially said form, with such additions thereto or changes therein as such officers may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof, and the City Clerk is hereby authorized to attest to such signatures. The date, maturity dates, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in said Indenture and in the final Loan Agreement referenced below provided that the true interest cost on the Bond does not exceed 5.25% per annum, the principal amount of the Bond does not exceed $7,100,000 and the final maturity date on the Bond is not later than September 15, 2029. 3. The form of Loan Agreement substantially as presented to this meeting, and the sale of the Bond to the Authority pursuant thereto, are hereby approved. The Mayor is hereby authorized and directed, for and in the name and on behalf of the City to execute and deliver said Loan Agreement. 4. A Bond in the aggregate principal amount not to exceed $7,100,000 shall be executed by the facsimile or manual signatures of the Mayor and Treasurer of the City, the facsimile or manual of the seal of the City shall be reproduced thereon and attested by the facsimile or manual signature of the City Clerk, in the form set forth in and otherwise in accordance with the Indenture and Loan Agreement. A Temporary Bond may be delivered in accordance with the provisions of the Indenture if such action is determined to be necessary by the Mayor and such approval shall be conclusively evidenced by the execution of such Temporary Bond. 5. The Bond, when so executed, shall be delivered to the Trustee for authentication. The Trustee is hereby requested and directed to authenticate the Bond by executing the Trustee's Certificate of Authentication appearing thereon, and to deliver the Bond, when duly executed and authenticated, to the Authority in accordance with written instructions executed on behalf of the City by the Mayor or Treasurer of the City, which instructions said officer is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver to the ORDINANCE 855 - PAGE -2 - \\Finance\Users\City Council\Ordinances\Ord. 855 Bond Ordinance.doc Trustee. Such instructions shall provide for the delivery of the Bond to the Authority in accordance with the Loan Agreement, upon payment of the purchase price thereof. 6. All actions heretofore taken by the officers and agents of the City with respect to the sale and issuance of the Bond are hereby approved, confirmed and ratified, and the officers of the City are hereby authorized and directek for and in the name and on behalf of the City to do any and all things and take any and all actions and execute and deliver any and all certificates, agreements and other documents (including but not limited to those described in the Loan Agreement, the Indenture and the other documents herein approved), which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bond in accordance with this Ordinance. 7. The City hereby finds, determines and confirms that the obligations evidenced by the above described Warrant, which are now being refunded by the Bond, constitute "ordinary and necessary expenses" under Article VIII, Section 3 of the Idaho Constitution and that the issuance of the Bond to refund the Warrant will result in financial savings and other benefits to the City. 8. After the Bond is issued, this Ordinance shall be irrepealable until defeased or finally paid. 9. The invalidity or unenforceability of any provision of this Ordinance shall not affect the remaining provisions. 10. All ordinances or resolutions inconsistent herewith are hereby repealed to the extent of such inconsistency. 11. This Ordinance, upon passage, or a summary thereof as permitted by Idaho Code 50-901A, shall be published in the official newspaper of the City within thirty (30) days of the date hereof. 12. That pursuant to the affirmative votes of one-half plus one of the members of the full Council, the rule requiring two separate readings by title and one reading in full be and the same hereby is, dispensed with, and accordingly, the ordinance shall be in full force and effect immediately upon its passage, approval and publication. ORDINANCE 855 - PAGE -3 - \\Finance\Users\City Council\Ordinances\Ord. 855 Bond Ordinance.doc PASSED by the City Council of the City of McCall, Idaho, this 24th day of April, 2008. APPROVED by the Mayor of the City of McCall, Idaho, this 24thday of April, 2008, ert Kulesza, Mayor ATTEST: By: Brenna Chaloupka, Acting City C erk (SEAL) ORDINANCE 855 - PAGE -4 - \\Finance\Users\City Council\Ordinances\Ord. 855 Bond Ordinance.doc Apr 25 2008 1:57PM ALLSTATE INSURANCE 2087466250 p.1 A SUMMARY OF ORDINANCE NO. 855 PASSED BY THB C1TY OF MCCALL, IDAHO AN ORDINANCE OF THE CITY OF IvMCCALL, VALLEY COUNTY, IDAHO, AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF CITY OF MCCALL REFUNDING BOND, SERIES 2008, AND AUTHORIZING EXECUTION AND DELIVERY OF AN INDENTURE, A LOAN AGREEMENT AND RELATED DOCUMENTS, MAKING FINDINGS IN CONNECTION THEREWITH; AUTHORIZING THE EXECUTION OF AND APPROVING RELATED DOCUMENTS, AGREEMENTS AND ACTIONS; AND PROVIDING FOR A WAIVER OF THE READING RULES AND ESTABL!LSHING AN EFFECTIVE DATE. This ordinance authorizes the issuance and sale of the City of McCall's Refunding Bond, Series 2008 in an. amount not to exceed $7,100,000, which Bond shall be applied to refund the Warrant issued by U.S. Bank, the proceeds of which are to be used to pay off the judgments rendered against the City in the United States District Court, District of Idaho, Case No. CV-01-629-S-BLW, EMPLOYERS INSURANCE OF WAUSAU, a Mutual Company vs. CITY OF McCALL, an Idaho Municipal Corporation, et al, and pay the costs of issuing the Bonds; to provide for an approved Loan Agreement to the City of McCall from the Idaho Bond Bank Authority for the loan and purchase of the Bonds and to provide for the officers of the City of McCall to take any actions necessary to execute and to deliver the necessary certificates, agreements and other documents in order to issue and deliver the Bond. The Ordinance shall be effective upon publication of this Summary The full text of the Ordinance is available for review at City Hall and will be provided by the City Clerk to any citizen upon personal request, or can be viewed on the City website at www rnccall.id.us. APPROVED BY THE COUNCIL OF THE CITY OF MCCALL, IDAHO, THIS 24th DAY OF April, 2008. ATTEST: By Brenna Chaloupka, Acting City Approved: By 64 ert Kulesza, ayor erk IIVOJW IO 1LLIO 8S0£P 9 oZ XVd 92:ST 900z/sa/t0 ORDINANCE SUMMARY CERTIFICATION Ordinance No. 855 Certification of City Legal Advisor of the Summary prepared for the above -numbered Ordinance The undersigned City of McCall Legal Advisor, having reviewed the above - numbered Ordinance and the Summary for the above -numbered Ordinance, believes the Summary of the above -numbered Ordinance is true and complete and that it provides adequate notice to the public of the identity and principal provisions of the Ordinance. Dated this 24th day of April, 2008. William F. Nichols