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HomeMy WebLinkAbout2010-013 Water System Facilities1%%� 1%004 RESOLUTIONNO. 13-2010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHUBBUCK, IDAHO, MAKING FINDINGS AND DECLARATIONS WITH RESPECT TO FINANCING IMPROVEMENTS TO THE CITY'S WATER SYSTEM FACILITIES; APPROVING AND AUTHORIZING, SUBJECT TO JUDICIAL CONFIRMATION, THE FINANCING OF THE IMPROVEMENTS THROUGH THE SALE OF REVENUE BONDS; AUTHORIZING THE FILING OF A PETITION FOR JUDICIAL CONFIRMATION IN THE DISTRICT COURT OF THE SIXTH JUDICIAL DISTRICT OF THE STATE OF IDAHO, IN AND FOR BANNOCK COUNTY; PROVIDING FOR RELATED MATTERS; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Chubbuck, Bannock 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 public water system (the "System"); and WHEREAS, the Mayor and Council of the City have determined that additional water rights are required in order for the System to remain functional and adequate to meet the current and projected future needs of the City and to comply with state and federal drinking water standards and fireflow water standards; and and WHEREAS, the estimated cost of the purchase of the required water rights is $2,000,000; WHEREAS, the City does not have sufficient funds available in its current fiscal year's budget to finance the cost of the water rights, and the Mayor and Council have determined that it is necessary to finance the cost thereof from future years' System revenues and other lawfully available funds of Petitioner; and WHEREAS, the Mayor and Council have further determined that it is in the best interests of the City to finance the cost of the purchase of water rights over a period of years, not to exceed t) thirty years, through a loan agreement with the Idaho Bond Bank Authority, or in the alternative, the sale of revenue bonds; and WHEREAS, the financing of the costs of the purchase of water rights in the manner described would create an indebtedness or liability of the City exceeding the current year's revenues;and WHEREAS, the Mayor and Council have determined that the purchase of water rights, and the proposed loan agreement and/or revenue bonds 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 Page I 1%—� %Wool WHEREAS, the Mayor and Council, on November 9,2010, held and conducted apublic 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 Sixth Judicial District 4D I'D I of the State of Idaho, in and for the County of Bannock, seeking judicial confirmation of the proposed sale of revenue bonds 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, at least fourteen (14) days have elapsed following such public hearing, and the Mayor and Council have 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 through the sale of revenue bonds, and to pledge its System revenues and other lawfully available funds of the City as security for the payment thereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHUBBUCK, IDAHO, as follows: Council Section 1: The foregoing recitations are hereby adopted as findings of fact by the Section 2: Subject to the entry of a final order of the District Court of the Sixth Judicial District of the State of Idaho, in and for the County of Bannock (the "District Court,,), confirming the authority of the City to enter into the transaction, the City is authorized to enter into a loan agreement with the Idaho Bond Bank Authority or in the alternative, to issue its revenue bonds to an alternative buyer, in amount not to exceed $2,000,000 and a term not to exceed thirty years, as evidence of the indebtedness incurred pursuant to the purchase of water rights. 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 "A" and by reference made a part hereof, is hereby approved, and the Mayor is authorized to execute the verification of the same. Section 4: The law firm of Moore Smith Buxton & Turcke, Chartered, Boise, Idaho, as special counsel to the City, is hereby authorized to file the 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 the District Court in accordance with the prayer of the Petition. Section 5: The Council hereby finds and declares that the indebtedness proposed to be incurred, and any evidence of indebtedness executed pursuant thereto, for the financing of the Page 2 9M 1%W-01 purchase of water rights, 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: 4:� A. The proposed expenditure is necessary to protect the health, safety, and welfare of the inhabitants of the Petitioner and to comply with state and federal drinking water standards and fireflow standards. B. The proposed expenditure is for the continued provision of water to the City's inhabitants, as opposed to the purpose of undertaking a new endeavor. C. The proposed Project is authorized by the general laws of the State. D. Petitioner has operated the existing System for many years and has determined that additional water rights are necessary to the efficient continued provision of water services. F. The cost of the Project is not grossly disproportionate to the Petitioner's overall budget. Section 6: This Resolution shall take effect and be in force immediately upon its passage and approval. DATED this 23 rd day of November, 20 10. CITY OF CRUBBUCK Bannock County, Idaho ; B y// Mayor ATTEST: Citfflerk U Page 3