HomeMy WebLinkAboutItem #5 Water Revenue BondORDINANCE NO. 862
AN ORDINANCE OF THE CITY OF CHUBBUCK, IDAHO, AUTHORIZING AND
PROVIDING FOR THE ISSUANCE OF A WATER REVENUE BOND, SERIES 2023, IN A
PRINCIPAL AMOUNT NOT TO EXCEED $9,223,000.00, FOR THE PURPOSE OF
FINANCING THE ACQUISITION, CONSTRUCTION AND INSTALLATION OF
IMPROVEMENTS TO THE DOMESTIC DRINKING WATER SYSTEM OF THE CITY OF
CHUBBUCK, BANNOCK COUNTY, IDAHO; DESCRIBING THE BOND; PROVIDING
FOR THE COLLECTION AND DISPOSITION OF REVENUES; PROVIDING FOR THE
PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BOND; ESTABLISHING
FUNDS AND ACCOUNTS; PROVIDING COVENANTS RELATING TO THE BOND;
PROVIDING FOR THE SALE OF THE BOND TO THE IDAHO DEPARTMENT OF
ENVIRONMENTAL QUALITY; PROVIDING FOR RELATED MATTERS; AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Chubbuck, Bannock County, Idaho (the "City"), is a municipal
corporation organized and operating under the laws of the State of Idaho; and
WHEREAS, the City is authorized to own, operate, and maintain a domestic water
system; and
WHEREAS, the City is authorized by the Constitution and laws of Idaho to issue revenue
bonds to finance all or part of the cost of acquisition, construction, and installation of
improvements and betterments to the domestic water system of the City; and
WHEREAS, the City obtained authority to borrow funds and issue its revenue bonds in a
judicial confirmation proceeding in the Sixth Judicial District of the State of Idaho, Case No.
CV 16-000239, which judgment was entered on March 14, 2016; and
WHEREAS, the Council has determined that the public health, safety, and welfare will
be furthered by the domestic water system improvement project described hereinafter and has
further determined to issue water revenue bonds of the City pursuant to the authority obtained
from the aforementioned judicial confirmation proceeding; and
WHEREAS, the City is authorized by law to sell water revenue bonds at private sale, and
the Council has determined to issue its water revenue obligations in the form of a single,
amortized water revenue bond in a principal amount not to exceed $9,223,000.00 to the State of
Idaho, Department of Environmental Quality.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE
CITY OF CHUBBUCK, IDAHO, as follows:
Section 1: DEFINITIONS
As used in this Ordinance, the following words shall have the following meanings:
A. Acquisition or Acquire includes the opening, laying out, establishment, purchase,
construction, securing, installation, reconstruction, lease, gift, grant from the Federal
Government, the State, any public body therein or any person or entity, the condemnation,
transfer, option to purchase, other contract, or other acquirement, or any combination thereof.
B. Additional Bond means any bond issued pursuant to Section 15 of this Ordinance.
C. Bond means the "City of Chubbuck Water Revenue Bond, Series 2023", herein
authorized to be issued, sold, and delivered in the form of a single, fully registered, amortized
revenue bond in a principal amount not to exceed $9,223,000.00.
D. Bond Fund means the "City of Chubbuck Water Revenue Bond Fund" created by
Section 12 of this Ordinance.
E. Bond Register _ means the registration books on which are maintained the names
and addresses of the owners or nominees of the owners of the Bond.
F. Bond Registrar means the bond registrar, transfer agent, and authenticating and
paying agent appointed and designated in Section 6 of this Ordinance.
G. Capital Improvement Fund means the "City of Chubbuck Water Project Capital
Improvement Fund" created by Section 10 of this Ordinance.
H. City means the City of Chubbuck, Bannock County, Idaho.
I. City Clerk means the Clerk of the City, or other officer of the City who is the
custodian of the seal of the City and of the records of the proceedings of the City, or his/her
successor in functions, if any.
J. Cost of Project or any phrase of similar import, means all or any part designated
by the Council of the costs of the Project, or interest therein, which costs, at the option of the
Council, may include all or any part of the incidental costs pertaining to the Project, including,
without limitation:
(1) Preliminary expenses advanced by the City from funds available for the
use therefor, or advanced by the Federal Government, or from any other source, with
approval of the Council, or any combination thereof,
(2) The costs of making surveys, audits, preliminary plans, other plans,
specifications, estimates of costs and other preliminaries;
(3) The costs of appraising, printing, estimates, advice, services of engineers,
architects, financial consultants, attorneys at law, clerical help, or other agents or
employees;
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(4) The costs of contingencies;
(5) The costs of the issuance of the Bond;
(6) The costs of funding any short-term financing, bond anticipation notes,
and other temporary loans pertaining to the Project and of the incidental expenses
incurred in connection with such loans;
(7) The costs of any properties, rights, easements, or other interest in
properties, or any licenses, privileges, agreements and franchises; and
(8) All other expenses necessary or desirable and pertaining to the Project, as
estimated or otherwise ascertained by the Council.
K. Council means the City Council of the City.
L. Estimated Net Revenues means, for any year, the estimated Revenues of the
System for such year less the estimated Operation and Maintenance Expenses for such year,
based upon estimates prepared by the City Engineer or an independent engineer, or an
independent certified public accountant. In computing Estimated Net Revenues, Revenues of the
System may be adjusted as necessary to reflect any changed schedule of rates and charges.
M. Mao means the Mayor of the City, or his/her successor in functions, if any.
N. Net Revenues means Revenue of the System after the deduction of Operation and
Maintenance Expenses.
O. Operation and Maintenance Expenses or any phrase of similar import means all
reasonable and necessary current expenses of the City, paid or accrued, of operating,
maintaining, and repairing the System or of levying, collecting, and otherwise administering the
Net Revenues for the payment of the Bond; and the term includes (except as limited by contract
or otherwise limited by law) without limiting the generality of the foregoing:
(1) Engineering, auditing, reporting, legal, and other overhead expenses of the
various City departments directly relating and reasonably allocable to the administration
of the System;
(2) Fidelity bonds and property and liability insurance premiums pertaining to
the System, or a reasonably allocable share of a premium of any blanket bond or policy
pertaining thereto;
(3) Payments to pension, retirement, health, and hospitalization funds and
other insurance of the System;
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(4) Any taxes, assessments, excise taxes, or other charges which may be
lawfully imposed on the City, the System, revenues therefrom, or any privilege in
connection with their operation;
(5) The reasonable charges of the bond registrar, fiscal or paying agent,
commercial bank, trust bank, or other depository bank pertaining to the Bond issued by
the City or pertaining to the Project, if any;
(6) Contractual services, professional services, salaries, other administrative
expenses, and the cost of materials, supplies, repairs, and labor, pertaining to the issuance
of the Bond and to the ordinary operation of the System; and
(7) All other administrative, general, and commercial expenses of the System.
P. Ordinance means this Ordinance No. 862, adopted on August 23, 2023.
Q. Project means the domestic water system improvement project described in
Section 2 of this Ordinance.
R. Registered Owner means the purchaser of the Bond and any subsequent transferee
or purchaser of the Bond.
S. Reserve Fund means the "City of Chubbuck Water Revenue Bond Debt Service
Reserve Fund" created by Section 13 of this Ordinance.
T. Revenue Fund means the "City of Chubbuck Water Revenue Fund" created by
Section 11 of this Ordinance.
U. Revenue of the System means all revenues received by the City from its System
and may include, at the discretion of the City, moneys derived from one, all, or any combination
of revenue sources pertaining to the System, including, without limitation, rates, charges, rents,
fees, and any other income derived from the operation or ownership of, the use of services of, or
the availability of or services pertaining to, or otherwise derived in connection with, the System
or all or any part of any property pertaining to the System.
V. System, for purposes of this Ordinance, means the domestic water system of the
City, as the same now exists, including its assets, real and personal, tangible and intangible, and
as it may later be added to, extended, and improved, and shall include buildings, structures,
utilities, or other income producing water facilities from the operation of or in connection with
which the revenues of the payment of the Bond to be issued hereunder will be derived, and the
lands pertaining thereto.
W. Treasurer means the Treasurer of the City, or his/her successor in functions, if
any.
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Section 2: THE PROJECT
A. Project Description. The domestic water system improvement project consists of
the acquisition and construction of certain capital improvements and betterments to the System,
consisting generally of a new well and booster pump, the evaluation of Well No. 1, construction
of a storage tank, replacement of distribution system sections, and fire improvements, together
with related improvements and costs of engineering, legal, and other services incidental thereto,
including the costs of issuance of the revenue bond therefor (the "Project").
B. Project Changes. The Council may make changes in the Project prior to or in the
course of actual construction, provided such changes are found necessary and desirable by the
Council and that such changes do not substantially affect or alter the plans or the cost of the
Project.
C. Costs. An amount not to exceed $9,223,000.00 of the cost and expenses of
construction and installation of the Project will be paid from the issuance and sale of the Bond.
Section 3: THE BOND
The Bond, designated "City of Chubbuck Water Revenue Bond, Series 2023" (the "2023
Bond"), in a principal amount not to exceed $9,223,000.00, is hereby authorized to be issued,
sold, and delivered pursuant to the Revenue Bond Act of the State of Idaho, the same being
Sections 50-1027 through 50-1042, Idaho Code, and pursuant to Section 57-227 and Title 57,
Chapter 9, Idaho Code.
The Bond shall consist of one single, transferable, amortized revenue bond, substantially
in the form annexed hereto as Exhibit "A," shall be issued in fully registered form, shall be dated
as of the date of its delivery, and shall bear interest on the unpaid balance, at the rate charged by
the State of Idaho Department of Environmental Quality.
The Bond shall be payable in equal biannual installments of principal and interest, with
the first installment of principal and interest being due six months from the date of delivery of
the Bond, and biannually thereafter until maturity. The final biannual installment may be in such
greater or lesser amount as is necessary to fully pay said Bond. The principal of and interest on
the Bond shall be fully paid within twenty (20) years from its date.
The sale of the Bond to the State of Idaho Department of Environmental Quality
(hereinafter the "Registered Owner"), is hereby authorized and approved. The Registered Owner
thereof shall have the right, at its expense, to convert said single bond to fully registered serial
bonds, without coupons.
In the event that the Bond is purchased by the State of Idaho, Department of
Environmental Quality, the City hereby agrees to comply with the requirements of the State of
Idaho, Department of Environmental Quality as contained in the Loan Contract entitled "State of
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Idaho Department of Environmental Quality Loan Offer, Acceptance and Agreement" pertaining
to the Project.
Section 4: EXECUTION
The Bond shall be executed by the manual signature of the Mayor, countersigned by the
manual signature of the Treasurer, and attested by the manual signature of the City Clerk, and the
seal of the City shall be impressed thereon.
Section 5: PLACE AND MANNER OF PAYMENT
Both principal of and interest on the Bond shall be payable in lawful money of the United
States of America to the Registered Owner thereof, at the address of such Registered Owner as
shown on the registration records of the City, or at such other address as shall be designated in
writing to the City by the Registered Owner.
Section 6: BOND REGISTRAR
The Treasurer is hereby appointed as bond registrar, transfer agent and paying agent, and
is herein referred to as the "Bond Registrar." The Bond Registrar shall keep, or cause to be kept,
sufficient books for the registration and transfer of the Bond. The Bond Registrar is authorized,
on behalf of the City, to carry out all of the Bond Registrar's powers and duties under this
Ordinance.
The Bond may be transferred only upon the books for the registration and transfer of
bond (the "Bond Register"), upon the surrender thereof to the Bond Registrar, together with a
form of transfer duly executed by the Registered Owner or its attorney duly authorized in
writing. Upon the transfer of the Bond, there shall be issued in the name of the transferee or
transferees a new fully registered bond or bonds of any authorized denomination or
denominations and of the same maturity and interest rate, and of the same aggregate principal
amount, as the surrendered bond. The new bond or bonds shall bear the same date as the date of
the surrendered bond, but shall bear interest from the immediately preceding interest payment
date to which interest has been paid or fully provided for.
This Section is intended to provide the system of registration required by Chapter 9, Title
57, Idaho Code.
Section 7: PREPAYMENT; NO DEFEASANCE
The City reserves the right, at its option, to prepay, on any principal payment date, the
principal amount outstanding on the Bond, in whole or in part. Partial prepayments shall be
made in the amount of $1,000 or multiples thereof. No partial prepayment shall extend or
postpone the due date of any subsequent installment. Prepayments shall be made without
penalty. Notice of any intended prepayment shall be mailed by certified mail to the Registered
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Owner of the Bond at its address appearing on the Bond Register, at least thirty (30) days prior to
the prepayment date.
So long as the Bond is held by the Idaho Department of Environmental Quality, the Bond
shall not be subject to defeasance prior to maturity, in whole or in part.
Section 8: CHARGES
The City has established, may from time to time revise, and shall maintain and collect
water rates and charges for furnishing the services of the System to its customers, which rates
and charges are, and shall continue to be, uniform as to all persons or properties which are of the
same class, which rates and charges shall be collected from the users thereof.
Section 9: PLEDGE OF REVENUES
The Net Revenues of the System are hereby pledged for the payment of the Bond and
shall be used and applied in the order of priority provided in Section 11 of this Ordinance.
The City shall establish, revise, maintain, and collect charges sufficient, with other
revenues received, after taking into consideration anticipated delinquencies, to provide Net
Revenues equal to not less than 1.1 times the average annual debt service on the Bond.
Section 10: THE CAPITAL IMPROVEMENT FUND
There is hereby created a special fund and account known as the "City of Chubbuck
Water Project Capital Improvement Fund" (the "Capital Improvement Fund"), into which shall
be deposited all of the proceeds of the sale of the Bond, to be used and applied for the payment
of a portion of the cost and expense of the construction and installation of the Project, including
the payment of the principal of and interest on all outstanding bond anticipation notes or other
interim financing. Any interest earnings on moneys invested from the Capital Improvement
Fund shall remain in and be used for the purposes of the Capital Improvement Fund. The City's
share of any liquidated damages or other moneys paid by defaulting contractors or their sureties
will be deposited into said Capital Improvement Fund to assure the completion of the Project.
When the Project has been completed and all costs related thereto have been paid in full,
any balance remaining in the Capital Improvement Fund shall be deposited into the Bond Fund
described in Section 12 of this Ordinance.
Section 11: THE REVENUE FUND
There is hereby created a special fund, designated the "City of Chubbuck Water Revenue
Fund" (the "Revenue Fund"), which shall be maintained by the Treasurer and into which the
Revenue of the System shall be deposited immediately upon its receipt.
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A. Use of Revenues. The Revenue of the System shall be used for the payment of
the following obligations in the following order of priority:
(1) First Charge and Lien: The costs of Operation and Maintenance
Expenses.
(2) Second Charge and Lien: The principal of and interest on the Bond, and
any other outstanding parity bonds, by payment into the Bond Fund, as provided in
Section 12 of this Ordinance.
(3) Third Charge and Lien: To maintain the Reserve Fund created by Section
13 of this Ordinance; and
(4) To administer surplus funds.
B. Interest Earnings. Interest earnings on deposits in the Water Revenue Fund shall
remain in and be used for the purposes of the Water Revenue Fund.
C. Surplus Funds. Funds remaining in the Revenue Fund after having been applied
to designated funds for the purposes provided in this section shall constitute surplus funds and
may be used for the purposes set forth in Section 14 of this Ordinance.
Section 12: THE BOND FUND
There is hereby created a special fund, designated the "City of Chubbuck Water Revenue
Bond Fund" (the "Bond Fund"), which shall be maintained by the Treasurer into which shall be
deposited, from the Net Revenues of the System, the following amounts:
A. Each biannual installment of principal and interest payable on the Bond shall be
payable into the Bond Fund from the Revenue Fund not less than ten (10) days prior to each
payment date, and paid from the Bond Fund to the Registered Owner on or before each payment
date. In the event that a single Bond is converted into fully registered serial bonds, as provided
in Section 3 of this Ordinance, then there shall be deposited into the Bond Fund from the
Revenue Fund on or before the 10th day prior to any interest or principal and interest payment
date the amount of interest or principal and interest then falling due on the Bond. The moneys
herein allocated shall be used solely to pay currently maturing installments of principal of and
interest on the Bond or any serial bonds to which a Bond may be converted.
B. If the City for any reason shall fail to make such deposit, then an amount equal to
the deficiency shall be deposited into the Bond Fund from the Reserve Fund, described
hereinafter.
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Section 13: DEBT SERVICE RESERVE FUND
A. Deposits. There is hereby created a special fund known as the "City of Chubbuck
Water Revenue Bond Debt Service Reserve Fund" (the "Reserve Fund"), which shall be
maintained by the Treasurer so long as the Bond remains outstanding. There shall be deposited
into the Reserve Fund, within one year from the date of issuance of the Bond, from Net
Revenues, an amount equal to one-tenth of an annual payment of principal and interest on the
Bond, and a like sum shall be deposited therein from Net Revenues on each anniversary date of
the Bond thereafter, for a period of ten years, or until such time as the amount in the Reserve
Fund equals at least one average annual bond payment for the Bond. The sum so accumulated
shall be maintained as a debt service reserve fund for the Bond, or any serial bonds to which a
Bond may be converted, until the Bond or serial bonds have been paid in full. The City shall
establish such subaccounts within the Reserve Fund, and shall comply with such restrictions on
the investment of moneys in such subaccounts, as may be required by the Tax Certificate
executed by the City at the time of the delivery of the Bond.
B. Deficiencies or Withdrawals. Whenever any moneys are withdrawn from the
Reserve Fund to pay the principal of or interest on the Bond, or if a deficiency exists therein, the
amount so withdrawn or the amount of such deficiency shall be restored by monthly deposits
from Net Revenues until there has been restored therein the gross amount provided heretofore in
subdivision A of this Section.
C. Refunding. In the event refunding bonds are ever issued, the amount set aside
into the Reserve Fund to secure the payment of the Bond may be used to retire bond or may be
held in the Reserve Fund to secure payment of the refunding bonds issued, to refund the
outstanding refunding bond, or may be held in the Reserve Fund to secure the payment of any
other issue or series of bonds payable out of the Bond Fund and issued on a parity with the Bond.
D. Investments. All moneys in the Reserve Fund may be kept in cash or deposited in
institutions permitted by law in an amount in each institution not greater than the amount insured
by any department or agency of the United States Government, or may be invested and
reinvested in any legal investment permitted for City moneys maturing not later than the last
maturity date of any outstanding bonds. Interest earned on any such investment shall be
deposited, directly as earned, into the Bond Fund.
Section 14: SURPLUS FUNDS
Funds remaining in the Revenue Fund after having been applied to or designated funds
for the purposes provided in Section I IA of this Ordinance shall constitute surplus funds and
may be used for any of the following purposes:
A. To pay the costs of unusual or extraordinary maintenance of or repair to the
System;
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B. To pay the principal of and interest on any subordinate lien obligations which
may have been issued to provide domestic water facilities in or for the City;
C. To improve, extend, enlarge, or replace any domestic water facilities;
D. To acquire or construct additional domestic water facilities in or for the City;
E. To call or redeem prior to their fixed dates of maturity any bond, parity bond, or
subordinate lien obligations issued to provide domestic water facilities for the City; and
F. For any other lawful System purpose.
Section 15: ADDITIONAL BONDS OR OTHER OBLIGATIONS
A. Limitation Upon Issuance of ParitObligations. Nothing contained in this
Ordinance shall be construed in such a manner as to prevent the issuance by the City of
Additional Bonds or other additional obligations payable from the Net Revenues on a parity
with, but neither prior nor superior to, the lien of the Bond herein authorized; provided, however,
that before any such Additional Bonds or other additional parity obligations are authorized or
actually issued:
(1) Any consent required by the Loan referred to in Section 3 of this
Ordinance shall have been obtained.
(2) The City is not, and has not been, in default as to any payments required
by the provisions of this Ordinance for a period of not less than twelve (12) months
immediately preceding the issuance of such Additional Bonds or other additional parity
obligations.
(3) The Net Revenues of the System for the past twelve (12) consecutive
months immediately preceding the year of the issuance of such Additional Bonds shall
have been sufficient to pay the Operation and Maintenance Expenses of the domestic
water System for said past twelve (12) months, and, in addition, sufficient so that the Net
Revenues for such preceding year equal an amount representing at least 110% of the
annual principal and interest requirements of the outstanding Bond, and any other obliga-
tions of the City payable from the Net Revenues of the System.
(4) The Estimated Net Revenues of the System for the twelve-month period
immediately succeeding the issuance of the bond or other obligations proposed to be
issued will be not less than 110% of the annual principal and interest requirements of the
Bond and any other obligations of the City payable from the Net Revenues of the System,
plus the average annual principal and interest requirements of the Additional Bonds or
other obligations proposed to be issued.
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(5) A written certification by an independent certified public accountant that
the 110% Net Revenue requirement of subsection (3) above, and the 110% Estimated Net
Revenues requirement of subsection (4) above have been satisfied shall be obtained and
filed with the City, which certification shall be conclusively presumed to be accurate in
determining the right of the City to authorize, issue, sell, and deliver said Additional
Bonds or other additional obligations on a parity with the Bond authorized herein.
(6) The foregoing limitations, or any of them, may be waived or modified by
the written consent of the Registered Owner of not less than 75% of the principal amount
of the Bond then outstanding.
B. Parity Bond to Complete Project. In the event grant funds, plus the proceeds of
the Bond provided for in this Ordinance, are insufficient to complete the Project, then parity
bonds or other obligations may be issued to complete the Project, and the restrictions set forth in
this Section pertaining to the issuance of parity bonds shall not apply.
C. Subordinate Lien Bond. No provision of this Ordinance shall be deemed to limit
or restrict the power of the City to issue bonds, notes or warrants, or to make pledges of the
revenues which shall be subordinate as to the lien of the Bond and which shall provide for
compliance with the current provisions hereof prior to the application of any funds to said
subordinate purpose, provided that any consent required by the Loan Approval referred to in
Section 3 of this Ordinance shall have been obtained.
D. Refunding. The restrictions with respect to the issuance of parity obligations shall
not apply if such additional parity bonds proposed to be issued are for the sole purpose of
refunding outstanding water revenue bonds.
Section 16: INVESTMENTS
Surplus funds in any of the Funds set forth in this Ordinance may be invested in securities
as permitted by law.
Section 17: GENERAL COVENANTS
For the protection and security of the Bond, it is covenanted and agreed to and with the
Registered Owner of the Bond from time to time, that the City will perform the following
covenants:
A. Complete Project. It will complete the construction of the Project with all
practical dispatch and in a sound and economical manner.
B. Operate System. It will operate the System in an efficient and economical manner
and prescribe, revise, and collect such charges in connection therewith so that the services,
facilities, and properties of the System may be furnished at the lowest possible cost consistent
with sound economy and prudent management.
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C. Good Repair. It will operate, maintain, preserve, and keep the System and every
part hereof in good repair, working order, and condition.
D. Corporate Status. It will maintain its status as a municipal corporation of the
State of Idaho and will take no steps to disincorporate or otherwise change its corporate status.
E. Preserve Security. It will preserve and protect the security of the Bond and the
rights of the Registered Owner thereof.
F. Collect Revenues. It will collect and hold in trust the revenues and other funds
pledged to the payment of the Bond and apply such revenue or other funds only as provided in
this Ordinance.
G. Service Bond. It will pay and cause to be paid punctually the principal of the
Bond and the interest thereon on the date or dates and at the place or places and in the manner
mentioned in the Bond, and in accordance with this Ordinance.
H. Pay Claims. It will pay and discharge any and all lawful claims for labor,
materials, and supplies which, if unpaid, might by law become a lien or charge upon the Revenue
of the System, or any part of said Revenue of the System, or any funds in the hands of the
Treasurer, prior or superior to the lien of the Bond or which might impair the security of the
Bond, to the end that the priority and security of the Bond shall be fully preserved and protected.
I. Encumbrances. It will not mortgage or otherwise encumber, sell, lease, or dispose
of the System or any part thereof, nor enter into any lease or agreement which would impair or
impede the operation of the System or any part thereof necessary to secure adequate revenues for
the payment of the principal of and interest on the Bond, nor which would otherwise impair or
impede the rights of the Registered Owner of the Bond with respect to such revenues of the
operation of the System without provisions for the retirement of the Bond then outstanding from
the proceeds thereof.
J. Insurance. It will procure and keep in force insurance upon all buildings and
structures of the System and the machinery and equipment therein, which are usually insured by
entities operating like property, in good and responsible insurance companies. The amount of
the insurance shall be such as may be required to adequately protect it and the Registered Owner
of the Bond from loss due to any casualty, and in the event of any such loss, the proceeds shall
be used to repair or restore the System or for the payment of the Bond issued under this
Ordinance.
K. Fidelity. It will procure suitable fidelity bonds covering all of its officers
and other employees charged with the operation of the System and the collection and
disbursement of revenues therefrom.
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L. Engineers. It will employ consulting engineers of acknowledged reputation, skill,
and experience in the improvement and operation of the System for any unusual or extraordinary
items of maintenance, repair, or betterments as shall be required from time to time, all reports,
estimates, and recommendations of such consulting engineers to be filed with the Clerk and
furnished to the Registered Owner of the Bond issued hereunder, upon request.
M. Accounts. It will keep proper and separate accounts and records in which
complete and separate entries shall be made of all transactions relating to the System, and it will
furnish complete operating and income statements upon request.
N. Delinquencies. It will not furnish domestic water service to any customer
whatsoever free of charge, and it shall not later than sixty (60) days after an account becomes
delinquent, take such legal action as may be reasonable to enforce collection of any collectible
delinquent account.
Section 18: SPECIAL COVENANTS
The City hither covenants and agrees:
A. In accordance with Section 149(a) of the Internal Revenue Code of 1986, as
amended (the "Code"), the Bond, and any serial bonds to which it may be converted, shall be
issued and remain in fully registered form in order that interest thereon be excluded from gross
income of the owner or owners for federal income tax purposes. The City covenants and agrees
that it will take no action to permit the Bond, or any serial bonds to which it may be converted, to
be issued in or converted to bearer or coupon form.
B. The Bond are hereby designated as a "qualified tax-exempt obligation" within the
meaning and for the purposes of Section 265(b)(3) of the Code, and the City does not reasonably
anticipate that it will designate more than $10,000,000, including the Bond, as qualified tax-
exempt obligations during the calendar year in which the Bond is issued.
C. None of the proceeds of the Bond will be used, directly or indirectly, (i) to make
or finance loans to persons or (ii) in any trade or business carried on by any person (other than as
a member of the general public). For purposes of the preceding sentence, the term "person" does
not include a government unit other than the United States or any agency or instrumentality
thereof, and the term "trade or business" means any activity carried on by a person other than a
natural person. The City further covenants and agrees to take no action which would cause the
Bond to be a "private activity bond," nor will it omit to take any action necessary to prevent the
Bond from becoming a "private activity bond," within the meaning of Section 141 of the Code.
D. The City has general taxing powers. The Bond is not a "private activity bond"
within the meaning of Section 141 of the Code. 95% or more of the net proceeds of the Bond are
to be used for the local governmental activities of the City. The City has no subordinate entities.
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E. The Mayor, Clerk, and Treasurer, and other appropriate officials of the City, or
any one or more of such officials, as may be appropriate, are each hereby authorized and directed
to execute, on behalf of the City, such certificate or certificates as shall be necessary to establish
that the Bond is not an "arbitrage bond" within the meaning of Section 148 of the Code and the
Treasury Regulations promulgated thereunder, and to establish that interest on the Bond is not
and will not become includable in the gross income of the owner(s) of the Bond under the Code
and applicable regulations. The City covenants and agrees that no use will be made of the
proceeds of the Bond, or any funds of the City which may, pursuant to Section 148 of the Code
and applicable regulations, be deemed to be proceeds of the Bond, which would cause the Bond
to be an "arbitrage bond" within the meaning of Section 148 of the Code. The City further
covenants to comply throughout the term of the Bond with the requirements of Section 148 of
the Code and the regulations promulgated thereunder in order to prevent the Bond from
becoming an "arbitrage bond."
F. The City will comply with the information reporting requirements of Section
149(e) of the Code.
G. None of the proceeds of the Bond will be used to reimburse the City for capital
expenditures made prior to the date of delivery of the Bond unless the City, not later than 60
days after the payment of such expenditure, shall have adopted an official intent resolution as
provided by Section 1.150-2 of the Treasury Regulations.
Section 19: AMENDMENTS
A. The City from time to time and at any time may adopt an ordinance or ordinances
supplemental hereto, which ordinance or ordinances thereafter shall become a part of this
Ordinance, for any one or more of all of the following purposes:
(1) To add to the covenants and agreements of the City in this Ordinance,
other covenants and agreements thereafter to be observed, which shall not adversely
affect the interest of the Registered Owner of the Bond, or to surrender any right or
power herein reserved.
(2) To make such provisions for the purpose of curing any ambiguities or of
curing, correcting, or supplementing any defective provisions contained in this
Ordinance, or any ordinance authorizing future bond in regard to matters or questions
arising under such ordinances as the Council may deem necessary or desirable and not
inconsistent with such ordinances and which shall not adversely affect, in any material
respect, the interest of the Registered Owner of the Bond.
Any such supplemental ordinance may be adopted without the consent of the
Registered Owner of the Bond at any time outstanding, notwithstanding any of the
provisions of subsection B of this Section.
Page 14
B. With the consent of the Registered Owner of not less than 75% in aggregate
principal amount of the Bond at the time outstanding, the Council may adopt an ordinance or
ordinances supplemental hereto for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Ordinance or of any supplemental ordinance;
provided, however, that no such supplemental ordinance shall:
(1) Extend the fixed maturities of the Bond, or reduce the rate of interest
thereon, or extend the time of payments of interest from their due date, or reduce the
amount of the principal thereof, or reduce any premium payable on the redemption
thereof, if applicable, without the consent of the Registered Owner of the Bond so
affected; or
(2) Reduce the aforesaid percentage of the Registered Owner required to
approve any such supplemental ordinance.
It shall not be necessary for the consent of the Registered Owner under this subsection B
to approve the particular form of any proposed supplemental ordinance, but it shall be sufficient
if such consent shall approve the substance thereof.
C. Upon the adoption of any supplemental ordinance pursuant to the provisions of
this Section, this Ordinance shall be deemed to be modified and amended in accordance
therewith, and the respective rights, duties, and obligations of the City under this Ordinance and
the Registered Owner of the Bond outstanding hereunder shall thereafter be determined,
exercised, and enforced thereunder, subject in all respects to such modification and amendments,
and all terms and conditions of any such supplemental ordinance shall be deemed to be part of
the terms and conditions of this Ordinance for any and all purposes.
D. Any Bond executed and delivered after the execution of any supplemental
ordinance adopted pursuant to the provisions of this Section may have a notation as to any matter
provided for in such supplemental ordinance, and if such supplemental ordinance shall so
provide, new bond so modified as to conform, in the opinion of the Council, to any modification
of this Ordinance contained in any such supplemental ordinance, may be prepared and delivered
without cost to the Registered Owner of the Bond then outstanding, upon surrender for
cancellation of the Bond.
Section 20: VALIDITY OF ISSUANCE
The Bond is issued pursuant to the Idaho Revenue Bond Act, being Idaho Code Sections
50-1027 through 50-1042. This recital is conclusive evidence of the validity of the Bond and the
regularity of its issuance.
Section 21: REGISTERED OWNER'S REMEDIES - RECEIVER
By action or suit in equity, the Registered Owner or subsequent owners of the Bond may,
in the event of a material violation of any of the foregoing covenants, cause the appointment of a
Page 15
receiver, which receiver may enter and take possession of the System and any Net Revenues for
the payment of the Bond, prescribe fees to be derived from the System, and collect, receive, and
apply all Net Revenues of other moneys pledged for the payment of the Bond in the same
manner as the City might do in accordance with the obligations of the City.
Section 22: ORDINANCE A CONTRACT
The provisions of this Ordinance shall constitute a contract between the City and the
Registered Owner so long as the Bond hereby authorized remains unpaid.
Section 23: SEVERABILITY
If any one or more of the covenants or agreements provided in this Ordinance to be
performed on the part of the City shall be declared by any court of competent jurisdiction to be
contrary to law, then such covenant or covenants, agreement or agreements, shall be null and
void and shall be deemed separable from the remaining covenants and agreements in this
Ordinance and shall in no way affect the validity of the other provisions of this Ordinance or of
the Bond.
Section 24: REPEALER
All prior ordinances or parts thereof, to the extent inconsistent herewith, are hereby
repealed and shall, to the extent of such inconsistency, have no further force or effect.
Section 255: AUTHORIZATION
The Mayor, City Clerk, and City Treasurer, or any one of such officers, as may be
appropriate to the circumstances, are hereby authorized to execute, on behalf of the City, all such
additional documents as may be necessary to effect the sale and delivery of the Bond.
Section 266: PUBLICATION AND EFFECTIVE DATE
This Ordinance, or a summary thereof in compliance with Section 50-901A, Idaho Code,
shall be published once in the official newspaper of the City, and shall take effect immediately
upon passage, approval, and publication.
DATED this 16th day of August, 2023.
CITY OF CHUBBUCK
Bannock County, Idaho
WE
Page 16
Mayor
ATTEST:
By:
City Clerk
( S E A L )
Page 17
ORDINANCE NO. 862
AN ORDINANCE OF THE CITY OF CHUBBUCK, IDAHO, AUTHORIZING AND
PROVIDING FOR THE ISSUANCE OF A WATER REVENUE BOND, SERIES 2023, IN A
PRINCIPAL AMOUNT NOT TO EXCEED $9,223,000.00, FOR THE PURPOSE OF
FINANCING THE ACQUISITION, CONSTRUCTION AND INSTALLATION OF
IMPROVEMENTS TO THE DOMESTIC DRINKING WATER SYSTEM OF THE CITY OF
CHUBBUCK, BANNOCK COUNTY, IDAHO; DESCRIBING THE BOND; PROVIDING FOR
THE COLLECTION AND DISPOSITION OF REVENUES; PROVIDING FOR THE
PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BOND; ESTABLISHING
FUNDS AND ACCOUNTS; PROVIDING COVENANTS RELATING TO THE BOND;
PROVIDING FOR THE SALE OF THE BOND TO THE IDAHO DEPARTMENT OF
ENVIRONMENTAL QUALITY; PROVIDING FOR RELATED MATTERS; AND
PROVIDING AN EFFECTIVE DATE
A summary of the principal provisions of Ordinance No. 862 of the City of Chubbuck,
Bannock County, Idaho, adopted on August 16, 2023, is as follows:
Section 1: Defines the terms and phrases used in the Ordinance.
Section 2: Describes the domestic water improvement project to be constructed with
the proceeds of the Bond authorized by the Ordinance, and states that an amount not to exceed
$9,223,000 of the cost thereof is to be paid from the sale of the Bond of the City described in
Section 3.
Section 3: Describes the City of Chubbuck Water Revenue Bond, Series 2023 (the
"Bond"), and provides for the terms of payment and the maturity of the Bond.
Section 4: Provides for the manner and method of execution of the Bond.
Section 5: Provides for the place and manner of payment of the Bond.
Section 6: Appoints the City Treasurer as Bond Registrar.
Section 7: Provides for the prepayment of the Bond.
Section 8: Provides for water rates and charges.
Section 9: Pledges the Net Revenues of the domestic water System for the payment
of the Bond.
Section 10: Establishes the City of Chubbuck Water Project Capital Improvement
Fund.
Section 11: Establishes the Water Revenue Fund.
Section 12: Establishes the Water Revenue Bond Fund.
Section 13: Establishes the Debt Service Reserve Fund.
Section 14: Provides for the disposition of surplus funds.
Section 15: Establishes the conditions of and limitations on the issuance of additional
bonds or other obligations.
Section 16: Provides for the investment of surplus funds.
Section 17: Provides certain general covenants of the City with the Registered Owner
of the Bond.
Section 18: Provides certain special covenants of the City with respect to the exclusion
Page 1
of interest on the Bond from income taxation.
Section 19: Provides for method of amending the Ordinance and adopting
supplemental ordinances.
Section 20: Recites that the Bond are issued pursuant to the Idaho Revenue Bond Act.
Section 21: Provides for remedies of the Registered Owner of the Bond.
Section 22: States that the Ordinance constitutes a contract with the Registered Owner
of the Bond.
Section 23: Provides for severability.
Section 24: Repeals prior inconsistent ordinances, to the extent of any inconsistency.
Section 25: Authorizes the Mayor, City Clerk, and City Treasurer to execute any
additional documents necessary to sell and deliver the Bond.
Section 26: Provides for the publication of the Ordinance or a summary thereof and
the effective date of the Ordinance.
The full text of Ordinance No. 862 is available at City Hall and will be provided to any
citizen upon personal request during normal office hours.
DATED this 16th day of August, 2023.
CITY OF CHUBBUCK
Bannock County, Idaho
Mayor
ATTEST:
City Clerk
Page 2
CERTIFICATION OF ATTORNEY
I, the undersigned attorney at law, duly licensed in the State of Idaho and serving as
special bond counsel to the City of Chubbuck, Idaho, hereby certify that I have read the attached
Summary of Ordinance No. 862 of the City of Chubbuck and that the same is true and complete
and provides adequate notice to the public of the contents of said Ordinance.
Dated as of the 16th day of August, 2023.
Attorney at Law
Page 3
CITY OF CHUBBUCK
Bannock County, Idaho
WATER REVENUE BOND, SERIES 2023
PRINCIPAL AMOUNT $9,222,747.15
GENERAL CERTIFICATE OF CITY CLERK
The undersigned, JOEY BOWERS, City Clerk of Chubbuck, Bannock County, Idaho (the
"City"), hereby certifies:
City:
1. The following persons are the duly elected or appointed incumbent officers of the
EXPIRATION OF
NAME
OFFICE
TERM
Kevin England
Mayor
January, 2026
Dan Heiner
Councilmember
January, 2024
Roger Hernandez
Councilmember
January, 2026
Melanie Evans
Councilmember
January, 2024
Norman Reece
Councilmember
January, 2024_
Joey Bowers
City Clerk
Indefinite
Rich Morgan
Treasurer
Indefinite
2. Such of the foregoing as were required to take or file oaths of office, or to give bonds
or undertakings, have duly taken, subscribed, and filed such oaths of office, and have duly filed such
bonds or undertakings, in my office in the form and manner required by law, and each is the duly
qualified and acting officer as aforesaid.
3. The City is and at all times pertinent hereto has been a duly incorporated and existing
municipal corporation organized and operating under the Constitution and laws of the State of Idaho.
The name and corporate status of the City has not been changed by any election, ordinance,
resolution, or other action of the City.
4. A true and correct copy of the Findings of Facts and Conclusions of Law in Case No.
CV 16-000239, in the Sixth Judicial District of the State of Idaho, dated March 14, 2016, authorizing
the sale of the City's revenue bonds, is included in this transcript as Document No. 2.
5. A true and correct copy of the Loan Offer, Acceptance, and Contract from the
Drinking Water State Revolving Fund, between the State of Idaho, Department of Environmental
Quality, and the City, dated June 16, 2016, and Amendment, dated August 7, 2023, relating to the
purchase of the revenue bond of the City, is included in this transcript as Documents No. 3.
6. On August 16, 2023, the Mayor and Council duly adopted Ordinance No. 862
authorizing the issuance of a water revenue bond in the principal amount not to exceed $9,223,000.
A true and correct copy is included in this transcript as Document No. 4.
Page 1
7. A true and correct copy of the affidavit of publication of Ordinance No. 862 is
included herein as Document No. 5.
8. All official actions taken by the Mayor and Council of the City with respect to the
approval of any ordinance or resolution referred to above occurred at open and public meetings of the
City Council which were duly called, noticed, held, and conducted in compliance with the laws of
the State of Idaho relating to public meetings of the City Council. All such ordinances and
resolutions are in full force and effect and have not been amended or repealed, in whole or in part,
unless otherwise specifically noted in this Certificate.
9. The seal affixed below is the official seal of the City.
IN WITNESS WHEREOF, the undersigned has hereunto set his signature and the official
seal of the City as of the 23rd day of August, 2023.
CITY OF CHUBBUCK
Bannock County, Idaho
City Clerk
( S E A L)
Page 2
STEPHANIE J. BONNEY ISB #6037 2Ut 16 M A R 14 PIM i, 2 6
PAUL J. FITZER ISB #5675
MOORE SMITH BUXTON & TURCKE, CHTD. i
950 W. Bannock Street Suite 520
Boise, Idaho 83702
Telephone: (208) 331-1800
Facsimile: (208) 331-1202
E-mail: sjb@msbtlaw.com
pjfnmsbtlaw.com
Attorneys for Petitioner
IN THE DISTRICT COURT OF THE SIXTH JUDICIAL DISTRICT OF THE
STATE OF IDAHO, IN AND FOR THE COUNTY OF BANNOCK
In re: ) Case No. CV 16-000239
THE CITY OF CHUBBUCK, ) FINDINGS OF FACT AND CONCLUSIONS
An Idaho municipal corporation, ) OF LAW
Petitioner. )
This matter having come on duly and regularly before this Court for hearing on March 14,
2016, and Petitioner having submitted a verified Petition for Judicial Confirmation ("Petition"), a
memorandum of law and affidavits in support of its Petition, and it appearing that proper notice of
the filing of the Petition for Judicial Confirmation has been given as provided in Title 7, Chapter 13,
Idaho Code, and the Court having examined the allegations of the Petition, the memorandum of law,
the affidavits in support and the exhibits annexed thereto, and the matter having been fully
submitted; the Court, being fully advised in the premises, now makes the following:
FINDINGS OF FACT
IM
Petitioner, City of Chubbuck, Bannock County, Idaho (the "Petitioner"), is a political
subdivision within the definition contained in Section 7-1303(6), Idaho Code, and has filed this
FINDINGS OF FACT AND CONCLUSIONS OF LAW - Page 1
action pursuant to Sections 7-1301, et sec ., Idaho Code (the "Judicial Confirmation Law"), seeking
judicial confirmation of the validity of the issuance of its promissory note or other evidence of
indebtedness, whereby Petitioner seeks to borrow funds for improvements to Petitioner's domestic
water system, to cause to be issued its promissory note or other evidence of indebtedness, and pledge
the net revenues of its water system and other lawfully available funds of Petitioner to the payment
thereof.
II.
Pursuant to Section 7-1304, Idaho Code, the City Council (the "Council") of Petitioner, on
December 2, 2015, held and conducted a public hearing to consider whether it should adopt a
resolution authorizing the filing of a petition under the Judicial Confirmation Law. A notice of the
public hearing, in the form and content described in Section 7-1306(2), Idaho Code, setting forth the
time, place, and summary of the matter, was published once in the Idaho State Journal, a newspaper
of general circulation within Petitioner's boundaries and the official newspaper of Petitioner, at least
fifteen (15) days prior to the public hearing. Following the public hearing, and after the passage of at
least fourteen (14) days, the Council, on December 16, 2015, adopted Resolution No. 2015-3,
authorizing the filing of a petition for judicial confirmation and making certain findings and
determinations.
In
Pursuant to Sections 7-1305 and 7-1306, Idaho Code, notice of the filing of the Petition for
Judicial Confirmation was duly served by publication once a week for three (3) consecutive weeks
by three (3) weekly insertions in the Idaho State Journal, a newspaper of general circulation within
Petitioner, and by posting in a prominent place at or near the main door of the administrative office
FINDINGS OF FACT AND CONCLUSIONS OF LAW - Page 2
of Petitioner at least thirty (3 0) days prior to the date fixed in the notice of hearing on the Petition, all
as more fully shown by the Affidavit of City Clerk Richard Morgan, on file herein.
IV.
Petitioner has submitted with its Petition for Judicial Confirmation an Affidavit of City Clerk
Richard Morgan with exhibits, an Affidavit of Stephanie J. Bonney with exhibits, and an Affidavit of
Project Engineer James Mullen, P.E. with exhibits. Petitioner's proof was unopposed and the
documents are conclusively deemed to be true and correct in accordance with their terms.
V.
Petitioner owns, maintains, and operates, and has for many years owned, maintained, and
operated, pursuant to Title 50, Chapters 3 and 10, Idaho Code, a water system (the "System") for the
provision of domestic water services to its residents. The System serves the City and is the sole
provider of domestic water services in Chubbuck, Idaho.
VI.
An engineering firm, Keller Associates Inc., performed a Water Facilities Plan and
Preliminary Engineering Report for the City of Chubbuck, Idaho in August, 2015 (the "Study"), to
assess the ability of the existing System to meet present and future demand, together with
performance of the System and its components with respect to standards established by the State of
Idaho through its Department of Environmental Quality ("DEQ") and the United States
Environmental Protection Agency ("EPA")
The Study determined that the City's potable water system does not provide an adequate
water supply and storage for the City's existing population and the system is out of compliance with
the IDAPA rules and regulation. The System does not meet the State of Idaho requirements for
FINDINGS OF FACT AND CONCLUSIONS OF LAW - Page 3
Ground Water Source Redundancy and Redundant Fire Flow Capacity as well as Maximum Day
Demand plus Fire Flow Demand ("MDD + FFD"). See (IDAPA 58.01.08 §§501.17,552.01,542.06,
542.09). The Study also found that in violation of Idaho Rules for Public Drinking Water Systems
(IDAPA 58.01.08.552), several areas of the water distribution system have inadequate volume and
incorrect pressure.
VII.
Based on the Study and other available information, Petitioner's Mayor and Council have
determined that the City immediately needed to upgrade/replace the most critical sections of the
System in order to keep the System viable and functioning, including but not limited to: evaluation,
rehabilitation, and upsizing of Well # 1; 2) construction of a new water source well (Well #6) with a
target capacity of approximately 2,200 gallons per minute ("gpm"); 3) construction of a 1.5 MG
storage tank; 4) construction of a booster pump station with a target capacity of approximately 4,000
gpm; 5) replacement of two sections of the distribution system (approximately 7,200 feet) that are
undersized; and 6) fire flow improvements.
The improvements are necessary in order for the System to remain functional and adequate to
meet the requirements of Idaho law and maintain supplies for clean drinking water and fire flow
protection (hereinafter, collectively, the "Project"), which is essential to providing the existing
domestic water system needs of Petitioner and its residents. Such improvements to the domestic
water system and related facilities within the City are necessary for the purpose of preserving the
health, safety, and welfare of the Petitioner's population.
FINDINGS OF FACT AND CONCLUSIONS OF LAW - Page 4
VIII.
The total cost of the Project has been estimated as $8,500,000. Petitioner does not have
funds available to it within its present budget to meet the cost of the Project, and has determined that
such cost must be financed over a term of years from the revenues of the System and other lawfully
available funds of Petitioner.
IX.
Petitioner does not have the necessary $8,500,000 available in its current funds or in its
System revenues for the current or ensuing fiscal year, and therefore must finance the costs over a
term of years. Petitioner has determined to finance the cost of the Project by entering into the loan
obligation with the State, pursuant to which the State will loan to Petitioner the funds required to
finance the Project, and the Petitioner will issue its promissory note or other evidence of such
indebtedness and will repay the loan over a term of years from System revenues together with other
lawfully available funds of Petitioner.
The loan, promissory note, or other evidence of indebtedness thereof, would constitute an
indebtedness of Petitioner extending beyond its current year's revenues. Petitioner has not sought or
obtained an approving vote of the electors at a special election called for the purpose of approving
such indebtedness, nor has Petitioner made provision for the levying of an annual property tax to
constitute a sinking fund for the payment of the interest on or principal of such indebtedness.
M.
Article 8, Section 3, of the Idaho Constitution provides, in relevant part, that no county, city,
or other political subdivision shall incur any indebtedness or liability, in any manner or for any
FINDINGS OF FACT AND CONCLUSIONS OF LAW - Page 5
purpose, exceeding in that year the income and revenue provided to it for such year, without the
assent of two-thirds (or, in the case of certain revenue bonds, the assent of the majority) of the
qualified electors thereof voting at an election held for that purpose, but said Article 8, Section 3,
contains the following exception: "provided, that this section shall not be construed to apply to the
ordinary and necessary expenses authorized by the general laws of the state ...."
KM
Petitioner, by and through its Council, has determined that the proposed loan obligation for
the financing of the Project constitutes an "ordinary and necessary expense" of Petitioner within the
meaning of the above -quoted proviso to Article 8, Section 3, Idaho Constitution, for which no
approving vote of the electors is required. This determination is based upon the following factor:
the legal issue, arising under Article 8, Section 3, Idaho Constitution, as to whether or not the
proposed loan obligation and any promissory note or other obligation evidencing such obligation
constitutes an "ordinary and necessary expense" of Petitioner, authorized by the general laws of the
State, for which an approving vote of the electors is not required.
XIII.
Petitioner's Council has determined that the loan obligation may be validly secured by
Petitioner's execution of the proposed loan obligation, by the issue of its promissory note and by
repayment of the same from its System revenues and other lawfully available funds of Petitioner.
Based upon the foregoing Findings of Fact, the Court now makes the following:
FINDINGS OF FACT AND CONCLUSIONS OF LAW - Page 6
CONCLUSIONS OF LAW
11
Proceedings under the Judicial Confirmation Law, Title 7, Chapter 13, Idaho Code, are
proceedings in rem, and jurisdiction of the subject matter and of all interested parties is lawfully
obtained through publication and posting as provided therein. Publication and posting as authorized
by the Judicial Confirmation Law is a valid method of vesting jurisdiction of this Court over all
interested parties and over the subject matter.
II.
Jurisdiction of this Court over the subject matter of the Petition for Judicial Confirmation and
over all interested parties has, as a matter of law, been obtained herein by publication and posting as
provided by law.
The Judicial Confirmation Law is valid and constitutional.
IV.
The allegations of the Petition for Judicial Confirmation are deemed to be admitted by all
interested parties who failed to appear in objection thereto. This Court is authorized to render the
judgment as prayed for in Petitioner's Petition for Judicial Confirmation and as set forth hereinafter.
V.
The Project proposed to be made by Petitioner, and the indebtedness proposed to be incurred
therefor, meets the criteria articulated by the Idaho Supreme Court to qualify under the "ordinary and
necessary expenses" exception to Article 8, Section 3, Idaho Constitution.
FINDINGS OF FACT AND CONCLUSIONS OF LAW - Page 7
VI.
As "ordinary and necessary expenses" within the meaning of Article 8, Section 3, Idaho
Constitution, no approval of the electors of Petitioner at a special election called for such purpose is
required.
VII.
The loan obligation, when duly executed by Petitioner and a third party, and the promissory
note when issued pursuant thereto will be valid and binding special obligations of Petitioner, payable
in accordance with their terms.
VIII.
Petitioner may validly pledge its water system revenues and other lawfully available funds of
Petitioner appropriated by Petitioner for such purpose, as security for its required payments under the
Loan obligation.
Based on the Findings of Fact and Conclusions of Law, and good cause appearing therefor,
THE COURT HEREBY DIRECTS that Judgment be entered in accordance with the Petition
for Judicial Confirmation, to the effect that the loan obligation constitutes a valid, binding, and
enforceable obligation of Petitioner and may be entered into and performed in accordance with its
terms.
DATED this ` day of March, 2016.
Honorable Robert C. Naftz
District Judge
FINDINGS OF FACT AND CONCLUSIONS OF LAW - Page 8
STATE OF IDAHO
DEPARTMENT OF
ENVIRONMENTAL QUALITY
1410 North Hilton • Boise, Idaho 83706 • (208) 373-0502
www.deq.idaho.gov
June 6, 2016
Certified mail no.: 7013 1710 0000 9751 7368
The Honorable Kevin B. England, Mayor
City of Chubbuck
P.O. Box 5604
Chubbuck,Idaho 83202
RE: Offer of Drinking Water Loan #DW1602
Dear Mayor England:
C.L. "Butch" Otter, Governor
John H.Tippets, Director
I am pleased to inform you that your application for a drinking water loan in the amount of $8,500,000 from the Drinking
Water State Revolving Fund has been accepted. The loan offer is enclosed. Please note that the enclosures include Davis
Bacon wage provisions in Attachments B & C.
Attached is a set of drinking water system classification forms for your use in determining the future classification of your
system. The updated system classification information is important and should be shared with your responsible charge
operator and substitute responsible charge operator. Drinking water system upgrades make it likely that the system
classification will change or increase and that the associated responsible charge operator and substitute responsible charge
operator licenses will also require upgrade. Should you have any questions regarding system classification, please contact
Andrew Fellows at 208-236-5016.
Once this offer has been accepted by the City, please complete the project schedule (Attachment A) and sign the offer on
page 11. A copy of the signed offer should be kept in the City's files. The loan offer and Attachment A should be returned
to Tim Wendland in this office at the address listed above, on or before June 30, 2016. Please pay close attention to the
Special Conditions on page 7 of the loan offer. Please read and comply with Attachments B and C, relating to compliance
with Davis Bacon wage provisions. Recipients of federal aid have to establish a "DUNS" number, please go to
http://fedy,ov.dnb.com/webfomi to establish your City's DUNS number
If you have an
y questions regarding this loan offer, please contact Tim Wendland at 208-373-0439 or Andrew Fellows in
our Pocatello Regional Office at 208-236-0516.
Sincerely,
Barry N. Burnell
Water Quality Division Administrator
BNB:TAW:dIs
Enclosures (loan offer, Attachments A, B & C, system classification information)
c: Andrew Fellows, DEQ Pocatello Regional Office
James Mullen, Keller and Associates, jmullen@kellerassociates.com
MaryA ma Peavey, DEQ State Office
Jerri Henry, DEQ State Office
Bill Hart, DEQ State Office
STATE OF IDAHO
DEPARTMENT OF ENVIRONMENTAL QUALITY
LOAN OFFER, ACCEPTANCE AND AGREEMENT
FOR DRINKING WATER TREATMENT
DESIGN AND CONSTRUCTION
SECTION I. INTRODUCTION
The State of Idaho (State) is authorized by Title 39, Chapter 36 (Act), Idaho Code, to enter into
loan agreements from the Drinking Water Treatment Facility State Revolving Fund Account
(Account) to assist municipalities in the construction of drinking water treatment facilities. The
Idaho Board of Environmental Quality, through the Department of Environmental Quality
(Department), is authorized to administer the Act. The Department has determined that the City
A Chubbuck (Borrower) has established eligibility for a loan under the terms of the Act and
IDAPA 58.01.20, the Idaho Rules for Administration of Drinking Water Loan Program (the
Rules).
The Borrower is a public entity created for the purposes, among other purposes, of operating and
maintaining the public drinking water system located in Bannock County, Idaho and taking all
necessary actions to ensure that the public drinking water system meets all applicable laws. The
Department hereby offers a loan to the Borrower according to the terms and conditions contained
in this document and the Rules.
SECTION II. DESCRIPTION OF PROJECT
This loan agreement is for design and construction of the following project:
A. Project Number:
B. Name and Address of Borrower:
C. Project Description:
D. Terms:
City of Chubbuck
5160 Yellowstone Ave.
Chubbuck, Idaho 83202
This project consists of evaluation and potential
upsizing of well #1, booster station upgrade, new
well (#6), a 1.5mg storage tank and a new booster
pump station (to include standby power and
disinfection), upsizing of distribution line and
fireflow improvements.
$8,500,000 at 2.75% (interest of 1.75% and fee of
1.00%) to be repaid in biannual installments over 20
years.
City of Chubbuck #DW1602 CFDA #66-468 1
E. Estimated Project Budget:
1. Transmission & Distribution $4,620,000
2. Storage 2,670,000
3. Source Development 1,210,000
Total $ 8.500,000
SECTION III. GENERAL CONDITIONS
This offer may only be accepted by signature by an authorized representative of the Applicant.
Upon acceptance by the Applicant, this offer shall become a loan agreement (Agreement) and the
Applicant shall become a Borrower. By accepting this offer, the Borrower agrees to all terms and
conditions set forth in this document and the Rules:
The Borrower agrees:
A. To not transfer, assign or pledge any beneficial interest in this Agreement to any other
person or entity without the prior written consent of the Director of the Department of
Environmental Quality (Director). To not enter into sale, lease or transfer of any of the
property related to the Agreement. To not make any additional material encumbrances to
the project without the prior written consent of the 10irector. To not incur any liabilities
that would materially affect the funds pledged to repay the loan without the prior written
consent of the Director. To not delegate legal responsibility for complying with the
terms, conditions, and obligations of this Agreement without the prior written consent of
the Director. Notwithstanding any other provision of this paragraph, the Borrower may
sell or otherwise dispose of any of the works, plant, properties and facilities of the project
or any real or personal property comprising a part of the same which shall have become
unserviceable, inadequate, obsolete or unfit to be used in the operation of the project, or
no longer necessary, material or useful in such operation, without the prior written
consent of the Director.
B. To enter into such contractual arrangements with third parties as it deems advisable to
assist it in meeting its responsibilities under this Agreement.
C. To fulfill all declarations, assurances, representations and statements in the application
and all other documents, amendments and communications filed with the Department by
the Borrower in support of the request for this loan. Which application is attached hereto
and incorporated by reference herein.
D. To comply with applicable State and Federal employment requirements including, but not
limited to, Equal Employment Opportunity and Civil Rights requirements.
City of Chubbuck #DW1602 CFDA #66468 2
E. To make efforts to award subagreements to Disadvantaged Business Enterprises (DBE)
which includes Minority and Women -owned businesses (MBE/WBE).
a. The separate fair share goals for MBE and for WBE will be in bid solicitations and
documentation of efforts to obtain MBE/WBE participation will be required of any
contractor who fails to attain the goals; and,
b. Semi-annual reports of MBE/WBE utilization will be prepared on forms supplied by
the Department; and,
c. Include the following language in all procurement contracts "The contractor shall
not discriminate on the basis of race, color, national origin or sex in the
performance of this contract. The contractor shall carry out applicable
requirements of 40 CFR Part 33 in the award and administration of contracts
awarded under EPA financial assistance agreements. Failure by the contractor to
carry out these requirements is a material breach of this contract which may
result in the termination of this contract or other legally available remedies. "
F. The Borrower has provided the Department with documentation evidencing ownership of,
and/or the right of access or easements for real property on which the project is proposed
to be constructed. Clear title or legal right to access all real property necessary for the
successful operation of the facilities shall be guaranteed by the Borrower for the useful
life of the project, prior to commencement of construction. Land acquisitions shall only
be reimbursed by DEQ if obtained from a willing seller.
G. That if prior to completion of this Agreement the project is damaged or destroyed, there
will be no reduction in the amounts payable by the Borrower to the Department.
H. That in the event there is any default in the payment of either the principal amount, fee or
the interest due under this Agreement, or any breach by the Borrower of any of the terms
or conditions of this Agreement, the entire principal amount and whatever interest and
fees are due to the date of payment may be declared due and immediately payable. The
amount of such default shall bear the same interest and fee rate as applies to the principal
of this loan agreement from the date of default until the date of payment by the Borrower.
All costs incurred by the Department due to such default, including court costs and
attorney's fees, shall be repaid by the Borrower to the Department.
I. That Borrower shall levy assessments and take those actions necessary to collect unpaid
charges for services or assessments, including without limitation, seeking money
judgments and filing and foreclosing on liens. Borrower agrees that, in the event
Borrower fails to meet its obligations under this Agreement and the subsequent
Promissory Note or Bond to repay the Department, that the Department is entitled to seek
specific performance of this Agreement to force the Borrower to take those actions
necessary to collect unpaid charges for services or assessments in order to repay the
Depart
ment. Nothing in this paragraph limits any other remedy available to the
Department in the event the Borrower violates this Agreement or the terms of the
Promissory Note or Bond.
City of Chubbuck #DW 1602 CFDA #664
68 3
J. That any waiver by the Department at any time of the rights or duties under this
Agreement shall not be deemed a waiver of any subsequent or additional rights or duties
under this Agreement.
K. That the use by the Department of any remedy specified in this Agreement for its
enforcement is not exclusive and shall not deprive the Department of the right to seek any
other appropriate legal or equitable remedy.
L. That this Agreement is binding upon the Borrower and the Department, and any person,
office or entity succeeding the Borrower or the Department.
M. To comply with all applicable federal, state and local laws.
N. In the event any term of this Agreement is held to be invalid or unenforceable by a court,
the remaining terms of this Agreement will remain in force.
O. The total loan funds disbursed per this Agreement are considered federal financial assistance
per the Single Audit Act of 1984, as amended by the Single Audit Act Amendments of 1996
(SAA), 31 U.S.C. §§7501-7507. (2000). If Borrower expends more than $750,000 of any
federal funds in a fiscal year, Borrower shall conduct an audit in accordance with the SAA.
In such case, Borrower shall provide the Department a copy of the SAA audit within nine (9)
months of the end of the audit period per the SAA. Borrower recognizes that it is responsible
for determining if the $750,000 threshold is reached and if a SAA audit is required.
Additionally, Borrower shall inform the Department, in writing, of findings or
recommendations pertaining to the State Revolving Fund contained in any SAA audits
conducted by Borrower.
P. Comply with all federal requirements applicable to the Agreement (including those imposed
by the 2014 Appropriations Act (Public Law 113-76, Section 436) and related SRF Policy
Guidelines) which includes requirements that all of the iron and steel products used in the
Project are to be produced in the United States ("American Iron and Steel Requirement")
unless (i) the Borrower has requested and obtained a waiver from Department pertaining to
the Project or (ii) Department has otherwise advised the Borrower in writing that the
American Iron and Steel Requirement is not applicable to the Project.
Comply with all record keeping and report
ing requirements under the Safe Drinking Water
Act (Section 1452, Title XIV of the Public Health Service Act), including any reports
required by a Federal agency or Department such as information on costs and project
progress.
The Borr
ower understands that (i) each contract and subcontract related to the project is
subj ect to audit by appropriate federal and/or state entities and (ii) failure to comply with the
Safe Drinking Water Act and this Agreement may be a default hereunder that results in a
repayment of the loan in advance of the maturity of the Bonds and/or other remedial actions.
City of Chubbuck #DW1602 CFDA #664
68 4
Q. As per Executive Order 12549, 2 CFR 180 and 2 CFR 1532 the loan recipient agrees to not
enter into covered transactions with any contractors or subcontractors that have been
suspended or debarred, and to include a similar term or condition in all lower tier covered
contracts and transactions.
SECTION IV. PROJECT MANAGEMENT
The Borrower agrees to:
A. Require the prime engineering firms) and their principals retained for engineering services
to cavy professional liability insurance to protect the public from the engineer's negligent
acts and errors of omission of a professional nature. The total aggregate of the engineer's
professional liability insurance shall be at least one hundred thousand dollars ($100,000) or
twice the amount of the engineer's fee, whichever is greater. Professional liability insurance
must cover all services rendered for all phases of the project, whether or not those services
are state funded, until the certification of proj ect performance is accepted by the Department.
B. Comply with the Public Worlcs Contractors License Act and the Public Contracts Bond Act,
Title 54, Chapter 19, Idaho Code, including requiring the prime construction contractor
retained for construction to carry performance and payment bonds equal to one hundred
percent (100%) of the contract price. The bond will be released when the constructed facility
V
s accepted by the Borrower.
C. Assure that contracts related to the project which provide for arbitration allow appeal of any
resulting arbitration decision to a district court or allow the arbitration to be non-binding on
both parties if either parry desires not to use arbitration as a method of dispute settlement.
D. Jointly with an engineering consultant provide assurances that the physical and operational
integrity %J the works, when constructed, will achieve the level of treatment provided for in
the design specifications.
E. Provide for the accumulation of funds through charges made for services assessments on
property owners or otherwise, for the purposes of establishing a fund dedicated solely to (1)
the repayment of principal, interest and fee on this loan, (2) capital replacement and (3)
future improvement, betterment, and extension of such works occasioned by increased usage
on the facility.
F. Provide a plan and program for an equitable user charge system, as permitt
ed by law, for
payment of operation and maintenance of constructed facilities. The user charge system shall
be approved by the Department and enacted by the Borrower prior to receiving final
payment. Make available on an equitable basis the services ofthe project to the residents and
commercial and industrial establishments of the area it was designed to serve.
G. Develop and adopt a water system protection ordinance approved by the Depart
ment prior to
City of Chubbuck #DW1602 CFDA #66468 5
receiving final payment of loan funds.
H. Provide to the Department for approval, an operation and maintenance manual for the
project. The manual shall be approved by the Department prior to receiving final payment of
loan funds.
I. Provide adequate staffing q" operation and maintenance personnel as specified in
the operation and maintenance manual approved by the Department.
J. Assure that the operator in responsible charge of the facility has a level of competency
commensurate with the nature of the facility. He or she must be licensed as a Drinking
Water Operator in a class equal to or greater than that of the facility.
K. Assure that distribution and treatment facility personnel shall participate in operator training
programs designed to assure competence in the operation and maintenance of the facility.
L. Commence satisfactory operation and maintenance of the drinking water treatment facility on
completion of the project in accordance with applicable provisions, rules of the Department
and any other applicable law, rule or regulation and not discontinue operation or dispose of
the facility without the written approval of the Department.
M. Review and update the user charge system, as permitted by law, at least biennially during the
life of this Agreement to assure that all costs including debt retirement, operation and
maintenance are offset by sufficient revenues.
N. Maintain project accounts in accordance with generally accepted accounting principles.
O. All laborers and mechanics employed by the prime construction contractor and
subcontractors in the project using State Revolving Fund (SRF) assistance shall be paid
wages at rates not less than those prevailing on projects of a character similar in the
locality in accordance with the labor standards, including prevailing wage rates and
instructions for reporting, as established by the United States Department of Labor
(subchapter IV of Chapter 31 of title 40, United States Code). Borrower agrees that all
procurement contracts must include as a term and condition that contractors and
subcontractors must obtain wage determinations from the Department of Labor and
comply with Department of Labor guidance and regulations implementing wage rate
requirements applicable to SRF funds. Wage determinations shall be finalized prior to
final bid submissions. Specific requirements related to Davis Bacon compliance are
included in Chapter 6, Form C, of the DWSRF Handbook, located at
http://www.deq.idaho.gov/media/577403-form 6 c.pdf .
City of Chubbuck #DW1602 CFDA #66-468 6
SECTION V. SPECIAL CONDITIONS
A. The Borrower shall complete the attached project schedule and submit to the Department for
approval on or before 60 days from the date of this offer. No funds shall be disbursed per
this Agreement until a project schedule has been approved by the Department. The
Department approved project schedule shall be attached to this Agreement as Attachment A
and incorporated by reference as if fully set forth herein. The Borrower shall complete the
project in accordance with the approved project schedule.
B. All amendments to the project schedule must be approved by the project engineer in the
Department's Pocatello Regional Office, prior to becoming effective.
C. As per Section VII.G. of this offer the following deliverables must be produced:
1. Establish a capital replacement fund
2. Establish full -cost pricing supported by a capital budget
D. A technical memorandum shall be developed and submitted during the detailed design
phase for each Green Project Reserve (GPR) component identified in the Letter of
Interest. The memorandum shall fully detail the GPR justification according to the
current EPA guidance for determining project eligibility and comparable to the examples
provided on the Department's website. Please review the following URLs for guidance:
1. http://kia.k�gov/NR/rdonlyres/08C6BSD5-BD95-4DC7-A579-
9CAA7AEAA7AB/0/EPA GPR Guidance eMa. 2011.pdf
2. http://www.deq.idaho.gov/water-qualitX/grants-loans/_rg een-project-reserve.aspx
SECTION VI. SECURITY REQUIREMENTS
The Borrower agrees:
A. This loan will be evidenced and secured by a promissory note for $8,500,000 (eight
million five hundred thousand dollars). The promissory note will be issued upon project
completion and incorporated by reference into this Agreement.
B. There will be a reserve fund equal to one year's payment of principal, fees and interest on
the loan established. The Borrower has ten years to establish the reserve, setting aside
10% (ten percent) of one year's payment into the reserve fund each year.
City of Chubbuck #DW 1602 CFDA #66-468 7
SECTION VII. LOAN DISBURSEMENTS
The Borrower agrees:
A. This loan shall be used solely to aid in the financing of the Borrower's project described
in Section II.
B. Requests for actual disbursement of loan funds will be made by the Borrower using forms
provided by the Department. Upon approval of the disbursement request by the
Department loan funds shall be released to the Borrower.
C. The costs set forth in Section II have been determined by the Department to be eligible
costs for funding. Some of the costs however, have been estimated, and the actual costs
may differ from such estimated costs. A project review by the Department will determine
final eligible costs for the project.
D. If the actual eligible cost of the project is determined by the Department to be lower than
the estimated eligible cost, the loan amount will be reduced accordingly.
E. An increase in the loan amount as a result of an increase in eligible project costs shall be
considered, provided funds are available. Documentation supporting the need for an
increase must be submitted to the Department for approval prior to incurring any costs
above the eligible cost ceiling.
F. Payment of the final five percent (5%) of this loan shall be withheld until the following
requirements are met:
1. The Borrower's engineer certifies (a) that the project has been constructed
according LVPlans and specifications previously approved by the Department, (b)
an operations manual has been completed and (c) that the project is fully
operational; and
2. The Department has inspected the project and verifies the engineer's certification.
G. Payment of the final ten percent (10%) of this loan shall be withheld until the following
requirements are met:
1. The Special Conditions in Section V have been met; and
2. A responsible charge operator (RCO) has been designated who is licensed at or above
the classification level of the system. At such times as the RCO is not available, a
substitute RCO shall be designated to replace the RCO, who is licensed at or above
the classification level of the system.
City of Chubbuck #DW1602 CFDA #66-468 8
H. This offer is subject to the existence of the offered sum of money in the Account at the
time of payment. Should the offered sum of money not be available in the Account at the
time of payment, the Department hereby agrees to pay the Borrower the offered sum of
money on the basis of the Borrower's priority position immediately upon the accrual of
said sum in the Account.
SECTION VIII. REPAYMENT TERMS AND SCHEDULE
The Borrower agrees:
A. This loan shall be repaid in the manner set forth in the promissory note/bond which shall
be attached to this Agreement and incorporated by reference. The payment terms of the
promissory note/bond shall be consistent with this Agreement.
B. To pay biannual payments of principal, fees and interest and to fully amortize this loan
not later than twenty (20) years from project completion. Interest will begin accruing
with the first disbursement of funds. At the time of closing, accrued interest will be either
paid to the Department or incorporated into the final loan amount if the approved amount
has not been exceeded.
C. At the time of closing, the Department may elect to impose a fee (not to exceed 1 %)
pursuant to the Rules. If a fee is imposed, the interest rate will be reduced by the amount
of the fee. The fee will be assessed against the final balance, which shall include the
entire principal balance and may include capitalized interest. Any fee shall be due and
payable concurrently with scheduled principal and interest repayments over the
repayment period.
D. This Agreement shall remain in full force and effect until all proceeds, including
principal, interest and fee, have been paid in full or the Agreement is otherwise suspended
or terminated by the Department.
SECTION IX. SUSPENSION OR TERMINATION OF LOAN AGREEMENT
A. The Director may suspend or terminate this Agreement prior to final disbursement for
failure of the loan recipient or its agents, including engineering firm(s), contractor(s), or
subcontractor(s) to perform. This Agreement may be suspended or terminated for good
cause including, but not limited to, the following:
1. Commission of fraud, embezzlement, theft, forgery, bribery, misrepresentation,
conversion, malpractice, misconduct, malfeasance, misfeasance, falsification or
unlawful destruction of records, receipt of stolen property or any form of tortious
conduct; or
2. Commission of any crime for which the maximum sentence includes the
possibility of one (1) or more years imprisonment or any crime involving or
City of Chubbuck #DW 1602 CFDA #664
68 9
affecting the project; or
3. Violations) of any term of this Agreement; or
4. Any willful or serious failure to perform within the scope of the project, plan of
operation and project schedule, terms of engineering subagreements, or contracts
for construction; or
5. Utilizing a contractor or subcontractor who has been suspended or debarred by
order of any federal or state agency from working on public work projects funded
by that agency.
B. The Director will notify the Borrower in writing and by certified mail of the intent to
suspend or terminate this Agreement. The notice of intent shall state:
1. Specific acts or omissions which form the basis for suspension or termination; and
2. Availability of a contested case hearing before the Board of Environmental
Quality conducted as provided for in the Rules of Administrative Procedure
Before the Board of Environmental Quality, IDAPA 58.01.23.
C. If the Borrower does not initiate a contested case hearing before the Board by filing a
petition within the time period specified by the Rules of Administrative Procedure Before
the Board of Environmental Quality, IDAPA 58.01.23., the Department may thereafter
terminate or suspend the Agreement by written notice to the Borrower. If the Borrower
initiates a contested case, the termination or suspension shall be determined by the Board.
D. The Borrower shall perform no work under the Agreement after receiving a notice of
intent to suspend or terminate until all administrative proceedings and appeals therefrom
are final or the Department reinstates the Agreement as provided herein.
E. Upon written request by the Borrower with evidence that the causes) for suspension no
longer exists, the Director may, if funds are available, reinstate the Agreement. If a
suspended Agreement is not reinstated, the loan will be amortized and a repayment
schedule prepared in accordance with the provisions of this Agreement.
F. Mn
terminated loan shall be reinstated. If the loan is terminated prior to final
disbursement, the Borrower shall immediately pay back to the Department all disbursed
funds and accrued interest.
SECTION X. ACCESS AND INDEMNIFICATION
The Borrower agrees to:
A. Provide the Director, or his/her authorized agents, and the U.S.' Environmental Protection
City of Chubbuck #DW 1602 CFDA #66468 10
Agency, access to all files, records, accountings and books relating to the management
and accountability of this loan.
B. Indemnify and hold harmless the State of Idaho, its agents and its employees from any
and all claims, actions, damages, liabilities and expenses directly or indirectly connected
to the Borrower or its agents, employees, contractors, or assignees actions related to the
location, design, construction, operation, maintenance, repair, failure or deactivation of
the project or any part of the project.
SECTION XI.OFFER
The offer set forth herein must be accepted, if at all, on or before June 305 2016. An acceptance
must be accompanied by a resolution of the Applicant's governing body authorizing the signator
to sign on the Applicant's behalf for the purpose of this agreement.
Dated June �, 2016.
Department of Environmental Quality
SECTION XII. ACCEPTANCE
The City of Chubbuck, by and through its undersigned representative(s), accepts the foregoing
offer and agrees to discharge all obligations and to comply with all terms and conditions
contained herein.
Signature of
Name and Title of
Date
City of Chubbuck #DW1602
- type or p!ri
CFDA #66-468
11