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RESOLUTION NO. 99-26 A RESOLUTION OF THE CITY OF MOSCOW, LATAH COUNTY, IDAHO, AUTHORIZING THE FILING OF A PETITION TO SEEK JUDICIAL CONFIRMATION OF THE CITY'S AUTHORITY TO ISSUE AND SELL CERTAIN REVENUE BONDS TO FINANCE IMPROVEMENTS TO THE CITY SEWER SYSTEM CITY OF MOSCOW LATAH COUNTY, IDAHO WHEREAS, the City of Moscow, Latah County, Idaho (the "City") has received notice from the State of Idaho Department of Health and Welfare, Division of Environmental Quality ("DEQ") that the City's sewer treatment facilities no longer comply with federal and State of Idaho regulations regarding sewer systems; WHEREAS the City and DEQ on November 12, 1997 entered into a Voluntary Consent Order whereby the City consented to make certain improvements to its sewer facilities in order to bring the sewer system into compliance with federal and State of Idaho regulations regarding sewer systems; WHEREAS, it is necessary for the City to incur debt by selling bonds in order to finance the capital costs of improving, repairing and replacing the City sewer facilities to meet the requirements of the Voluntary Consent Order: WHEREAS, the City believes that the debt to be incurred is an ordinary and necessary expense of the City; WHEREAS, pursuant to Idaho Code Section 7-1302 et seq., the City may seek judicial confirmation of the city's authority to issue and sell certain revenue bonds to finance improvements to the City sewer facilities without holding an election thereon as an ordinary and necessary expense of the City of Moscow; WHEREAS. the City Council of the City of Moscow, Latah County, Idaho (the "Council"), conducted a public hearing as required by Idaho Code Section 7-1304(3) on September 7, 1999, at 7:30p.m pursuant to notice duly published in the official news paper of the City; and WHEREAS. the Council having duly considered the ramifications of the proposed judicial confirmation of the City's ability to issue certain revenue bonds as an ordinary and necessary expense under the Idaho Constitution Section 8; 26 Resolution No. 99-__ 1 ---PAGE BREAK--- NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MOSCOW LATAH COUNTY, IDAHO, as follows: Section 1: The City and DEQ on November 12, 1997, entered into a Voluntary Consent Order whereby the City consented to make certain improvements to its sewer facilities in order to bring the City water facilities into compliance with federal and State of Idaho regulations regarding sewer systems. Section 2: The City does not have adequate funds currently available in its current budget to pay all of the costs of constructing the improvements, repairs and replacements that are necessary to bring the City sewer facilities into compliance under the Voluntary Consent Order and make other necessary improvements to the system. Section 3: The City hereby determines that the City must issue, sell and deliver certain revenue bonds in order to pay the cost of constructing the improvements, repairs and replacements to the City sewer facilities. Section 4: The City hereby determines that the proposed issuance and sale of the revenue bonds constitutes an ordinary and necessary expense of the City within the meaning of Article 8, Section 3, Idaho Constitution, for which no approving vote of the electors is required. Section 5: The City hereby determines to seek a determination of the validity of the City's authority to issue and sell certain revenue bonds in view of the legal issue arising under Article 8, Section 3, Idaho Constitution, as to whether or not the proposed bond issuance and sale constitutes an ordinary and necessary expense of the City for which an approving vote of the electors is not required. Section 7: Judicial examination and confirmation would serve an important public purpose by providing an early determination of the validity of the power of the City to issue and sell revenue bonds and to pledge to repay said obligations from its lawfully available revenue, all as provided by the Judicial Confirmation Act and in particular, Section 7-1302, Idaho Code. Section 8: The City hereby authorizes the law firm of Wetzel & Wetzel, P.L.L.C., to file a petition on behalf of the City to seek judicial confirmation of the City's authority to issue and sell certain revenue bonds to pay for the support services building. Section 9: This resolution shall take effect and be in full force from and after its passage and approvaL Resolution No. 99- 2 ---PAGE BREAK--- DATED this 4'h day of October, 1999. (S EA L) Resolution No. 99- CITY OF MOSCOW Latah County, Idaho 3 /