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HomeMy WebLinkAbout1998-03-24city council minutesBook 39 Page 79 SPECIAL MEETING MARCH 24, 1998 5:30 P.M. The Meeting was called to order by Mayor Nancolas. The Mayor requested that everyone stand for the Pledge of Allegiance. The Roll of the City Council was called with the following members present: Earl, Ozuna, Langan, Wells, Houcbins, and Evans. Absent: none. ADDITIONS OR DELETIONS TO THE AGENDA The Mayor informed Council that he would like to delete Item No. Three on the prepared Agenda as he felt the information provided was not sufficient to make a decision. He did call Mr. McGarvin and informed him that it would be taken off the Agenda until he could provide additional information. MOVED by Langan, SECONDED by Earl that Item No. Three on the Agenda regarding the Golf Cart Storage Proposal be eliminated from the prepared Agenda. Roll call vote. Those voting yes: Langan, Wells, Houchins, Evans, Earl, and Ozuna. Those voting no: none. Absent and not voting: none. MOTION CARRIED (CONSIDERATION TO APPROVE THE RESOLUTION AND THE BOND _ PURCHASE AGREEMENT FOR THE SEWER TREATMENT PLANT CONSTRUCTION) Mr. Law, the City Engineer and Public Works Director, was recognized by the Mayor and requested to present a brief outline of this item on the Agenda. He explained that the Special Council Meeting was called for the purpose of completing the final paper work related to financing improvements at the Wastewater Treatment Plant. It was the intent that certificates of participation amounting to $3,000,000 be sold immediately and the proceeds forwarded to the City on or about April 1, 1998. The loan offer of $10,000,000 from the State Revolving Fund was in the mail awaiting the Mayor's signature. The City Engineer continued stated that attached to this memorandum was that proposed loan agreement and trust indenture document which was reviewed and approved as part of the judicial validation process. Also included was the opinion of bond counsel that the City has authority to borrow and a resolution for consideration of Council approving the agreement. As presently configured, the certificates of participation would be paid off in the year 2003 and the revolving fund loan would be paid off in the year 2020. The interest rate on both instruments was estimated to be 4 ' / 2% or less. Mr. Mike Moore, the Bond Attorney for this issue and Mr. Floyd Ayers from Seattle Northwest Securities were available tonight to answer any questions on the documents to be approved. It was the recommendation of the Engineering Department that the loan agreement and trust indenture be approved as submitted and that the City be authorized to finance the wastewater treatment plant improvements as proposed. At this point, both Mr. Moore and Mr. Ayers presented background information with regard to this project. At the conclusion of their remarks, Mayor Nancolas read the following Resolution to be considered by the City Council: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALDWELL, IDAHO, APPROVING AND AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT AND TRUST INDENTURE FOR THE FINANCING OF THE Book 39 Page 80 COSTS OF IMPROVEMENTS TO THE CITY'S SEWAGE TREATMENT FACILITIES; AUTHORIZING TILE MAYOR, CITY CLERK., AND CITY TREASURER TO EXECUTE ADDITIONAL, DOCUMENTS RELATING THERETO; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, On September 2, 1997, the City Council (the "Council ") of the City of Caldwell, Canyon County, Idaho (the "City "), adopted Resolution No. 72 -97 making findings and declarations with respect to the City's sewage treatment facility and approving and authorizing the execution of a Loan Agreement and Trust Indenture (the "Indenture ") between the City and First Security Bank, N.A. (the "Trustee "), for the financing of a portion of the costs of the project (the "Project "), as defined in the Indenture; and WHEREAS, In said Resolution, the Council determined that the costs of the Project to be financed from future years' revenues constitute "ordinance and necessary expenses" of the City within the meaning of Article 8, Section 3, Idaho Constitution, for which no approving vote of the electors is required, and further determined to submit such determination to the District Court of the Third Judicial District of the State of Idaho, in and for the County of Canyon (the "Court "), pursuant to the Idaho Judicial Confirmation Law; and WHEREAS, The City thereafter caused a petition to be filed with the Court under the Idaho Judicial Confirmation Law, submitting to the Court the question of the validity of the Indenture, the issuance of Certificates of Participation (the "Certificates ") pursuant thereto, and other legal questions; and WIIEREAS, On November 7, 1997, the Court, in Case No. SP97- 01690, entered its Findings of Fact, Conclusions of Law, Order for Entry of Judgment and Decree Granting Petition for Judicial Examination and Determination, and Judgment and Decree Granting Petition for Judicial Examination and Determination, in which it was ordered, adjudged, and decreed that (1) the City is authorized to enter into the Indenture without the approval of two- thirds of the electors of the City voting at a special election called for such purpose;. (2) the indebtedness or liability of the City incurred pursuant to the Indenture is an ordinary and necessary expense of the City within the meaning of Article S, Section 3, Idaho Constitution; (3) the City may pledge its net sewage system revenues to the payment of such indebtedness or liability; and (4) the Indenture, when duly executed and delivered by the City, will be valid and binding special obligation of the City, enforceable in accordance with its terms; and WHEREAS, The Board now desires to provide for the execution of the Indenture and the issuance and sale of Certificates pursuant thereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CALDWELL, Carryon County, Idaho, as follows: Section 1: That the Loan Agreement and Trust Indenture (the "Indenture "), in substantially the form annexed hereto, is hereby approved and the Mayor and City Clerk are hereby authorized to execute the same, it being the intent of the Council that the Indenture be executed in all material respects in the form approved by the Court in the aforesaid judicial confirmation action, with such additions and details as were necessarily omitted therefrom pending determination of its validity by the Court. Section 2: That the Mayor, City Clerk, and City Treasurer, or any one or more of the foregoing as may be appropriate to the document being executed, are hereby authorized and directed to execute and deliver, on behalf of the City, any and all such additional certificates, receipts, and other documents as may be necessary to carry out the intent and purpose of the Indenture and to effectuate the issuance, sale, and delivery of the Certificates "of Participation as provided in the Indenture. Section 3: That except as provided herein, all of the findings, declaration, terms, and conditions contained in Resolution No. 72 -97 of the City; adopted on September 2, 1997, are hereby ratified and confirmed. Section 4: This Resolution shall take effect and be in full force from and after its passage and approval. Book 39 Page 81 MOVED by Earl, SECONDED by Houchins that the Resolution as presented by Mayor Nancolas be passed. Roll call vote. Those voting yes: Earl, Ozuna, Langan, Wells, Houchins, and Evans. Those voting no: none. Absent and not voting: none. MOTION CARRIED (RECOMMENDATION OF THE MAYOR TO REAPPOINT RICHARD HARRIS AS THE CITY ATTORNEY UNTIL MAY 4,1998) The Mayor stated that the City was requesting proposals from attorneys in the area to serve the City of Caldwell. That process was taking longer than anticipated so it was necessary to extend the appointment of Richard Harris until May 4, 1998. It was his recommendation that the City Council approve this reappointment. MOVED by Langan, SECONDED by Evans that the Council accept the recommendation of the Mayor and extend the appointment of Mr. Harris until May 4, 1998. Roll call vote. Those voting yes: Langan, Wells, Houchins, Evans, Earl, and Ozuna. Those voting no: none. Absent and not voting: none. MOTION CARRIED (ADJOURNMENT) Since there was no further business at this time, the Mayor asked for a motion to close the meeting. MOVED by Evans, SECONDED by Ozuna that the Special City Council Meeting be adjourned at 5:55 p.m. Roll call vote. Those voting yes: Evans, Earl, Ozuna, Langan, Wells, and Houchins. Those voting no: none. Absent and not voting: none. MOTION CARRIED APPROVED AS written THIS 6th DAY OF April ' 1998. � Q ' �� k'tL' Mayor Councilperson Councilperson ATTEST: City Clerk