HomeMy WebLinkAbout2015-003C Financing Water System ImprovementsRESOLUTION NO. W/ 5�- 1'3 C
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHUBBUCK, IDAHO,
IMAKING FINDINGS AND DECLARATIONS WITH RESPECT TO FINANCING
1IMPROVEMENTS TO THE CITY'S PUBLIC WATER SYSTEM FACILITIES; APPROVING
AND AUTHORIZING, SUBJECT TO JUDICIAL CONFIRMATION, THE EXECUTION OF A
PROIMISSORY NOTE FOR THE FINANCING OF THE 1IMPROVEMENTS; 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, tinder the laws of the State of Idaho, and has for many
),cars owned and operated a public water system (the "System"); and
WHEREAS, the Mayor and Council of the City have determined that certain
improvements to the System (the "Project") are required in order for the System to remain
functional and adequate to meet the current needs of the City and to comply with Currently
applicable state water system requirements; and
WHEREAS, the estimated cost of the Project to the City (exclusive of grants and other
state and federal contributions) is $8,500,000; and
WHEREAS, the City does not have SUffiCient funds available in its current fiscal year's
budget to finance the cost of the Project, 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 Project through a promissory note from the State of Idaho,
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Department of Environmental Quality (the "State"), or in the alternative, through the issuance of
water revenue bonds to other such qualified parties; and
WHEREAS, the financing of the costs of the Project in the manner described would
create an indebtedness or liability of the City exceeding the current year's revenues; and
WHEREAS, the Mayor and COU1161 have determined that the cost of the Project, and the
proposed loan obligation to be incurred 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 approvintg vote of the electors is required; and
\\THEREAS., the Mayor and Council, on December 2, 20 15, held and conducted a public
licarin,g, pursuant to at least fifteen (15) days' published notice in the nianner required by
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Sections 7-1304 and 7-1 '306, Idaho Code, on the question of whether the COL11161 should adopt a
resolution authorizing the filing of a petition with the District Court of tile Sixth Judicial District
of the State of Idaho, in and for tile County of Bannock, seeking judicial confirmation of the
proposed loan agreement and the incurring of such indebtedness as an "ordinary and necessary
expense" within the Ineaning of Article 8, Section 3, of the Idaho Constitution, pursuant to the
Judicial Confirmation Law; and
WHEREAS, at least fourteen (14) days has elapsed f0110"-ing Such public hearing, and
the Nlayor 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 tile qUeSti011 of the authority of the City, to inctir SLICII
indebtedness, to issue its promissory note, Nvater revenue bond, or other evidence thereof, and to
pledge its System revenues and other lawfulbly available funds of tile Citv as securitv for the
payment thereof. I
NOW,,rHE-R-EFORE, BE ITRESOLVED BYTHE CITY COUNCIL OF THE CITY OF
CHUBBUCK, IDAHO, as follows:
Section I The foreaoin!z recitations are hereby adopted as findings of fact by the
Council. C�
Section 2: Subject to the entry of a final order of the District Court of the Sixth
Judicial District of tile State of Idaho, in and for the County of Bannock (the "District Court"),
confirming the authority? of the City to issue a promissory note or ,vater revenue bonds, or Such
other evidence of indebtedness and the Mayor is hereby authorized to execute the same for and
on behalf of the CitV. 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 ' ): The Petition for Judicial Confirmation (the "Petition") as drafted by tile
City's Bond Counsel is hereby approved, and tile Mayor is authorized to It i
of tile same. execute the verification
Section 4: The law firm of Moore Smith Buxton & Turcke, Chartered, Boise, Idaho,
is hereby authorized to file the Petition on behalf of the City in the District Court, and to take all
actions necessary ivith respect thereto in order to obtain a judgment of the District Court in
accordance with the prayer of the Petition,
Section 5: ThC COL11161 hereby finds and declares that the indebtedness referenced
herein, and an), evidence of indebtedness executed pursuant thereto, for the rinancing of the
Project, C01lStitUte an ordinary and necessary expense of tile City authorized by the general laws
of tile State of Idalio within the meaning of Article 8, Section 3,
3 Idalio Constitution, for �vhich no
approving vote of the electors of tile City is required. for the followino reasons:
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A. The proposed expenditure is necessary to protect the health, safety, and welfare of
the inhabitants of the Petitioner and to comply with federal and state water system
reqUirenients.
B. Tile proposed expenditure is for the construction of necessary upgrades and
improvements to existing City services in order to continue to provide water
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services to current residents, as opposed to tile 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 the Project is indispensable to the efficient continUed provision of water
services in a manner to provide adequate water services and a safe public drinking
water supply.
E. Tile cost of tile Project is not grossly disproportionate to the Petitioner's overall
budget,
Section 6: This Resolution shall take effect and be in force iminediately upon its
passage and approval.
'& 4 11 day of December, 2015.
DATED this J
ATTEST:
City Clerk
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CITY OF CHUBBUCK
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