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
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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
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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
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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
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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:
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