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
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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
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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.
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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)
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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