HomeMy Public PortalAboutRES-CC-2010-04Resolution #04-2010
A RESOLUTION APPROVING AMENDMENT #1 TO THE INTERLOCAL
AGREEMENT FOR THE JOINT FINANCING OF A RECREATION CENTER COMPLEX
WHEREAS GCRSSD and the City entered into an Interlocal Agreement for the Joint
Financing of Recreation Center Complex in October, 2008; and
WHEREAS, said Agreement contemplated specific timeframes for construction and
subsequent operation of the Recreation Center Complex; and
WHEREAS, schedules in the Agreement for financial contributions were based on the
timeframes for construction and subsequent operation of the Recreation Center Complex; and
WHEREAS, said timeframes and schedules need to be clarified and restated to reflect
existing circumstances.
NOW THEREFORE, we, the Governing Body of the City of Moab do hereby approve Amendment
# 1 to the Interlocal Agreement for the Joint Financing of a Recreation Center Complex and
authorize the appropriate officials to execute said Amendment
Passed and adopted by action of the Governing Body of the City of Moab in open session this
26th day of January, 2010.
SIGNED:
David L. Sakrison, Mayor
ATTEST:
Rachel Ellison, Recorder
Resolution #04-2010 Page 1 of 1
INTERLOCAL AGREEMENT FOR THE JOINT FINANCING OF A
RECREATION CENTER COMPLEX
Amendment Number One
THIS AMENDMENT NUMBER ONE TO THE INTERLOCAL AGREEMENT FOR THE
JOINT FINANCING OF A RECREATION CENTER COMPLEX is entered into as of this
day of 2010, by and between the GRAND COUNTY RECREATION SPECIAL
SERVICE DISTRICT, a body politic and corporate and quasi -municipal public corporation of the
State of Utah ("GCRSSD"), and THE CITY OF MOAB, a body corporate and politic of the State
of Utah (the "City") (collectively, the "Parties").
A. WHEREAS GCRSSD and the City entered into an Interlocal Agreement for
the Joint Financing of Recreation Center Complex in October, 2008; and
B. WHEREAS, said Agreement contemplated specific timeframes for
construction and subsequent operation of the Recreation Center Complex; and
C. WHEREAS, said timeframes need to be clarified and restated to reflect
existing circumstances.
NOW, THEREFORE, in consideration of the mutual promises set forth herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each Party,
the parties agree that Section 1(a) and Section 1(f) of the Agreement shall be amended to read as
follows:
1. GCRSSD's Consent.
a. GCRSSD, pursuant to Section 11-13-215 of the Interlocal Cooperation Act,
hereby agrees and consents that the City shall be paid certain Mineral Lease
revenues, as they become available to GCRSSD. From the proceeds of Mineral
Lease Revenues actually received by the GCRSSD, the following funds are
pledged to the City to be used by the City to finance the Recreation Center Project:
i. A sum not to exceed one hundred ninety thousand dollars
($190,000.00) payable annually for years 2010 through 2034, inclusive, to be disbursed as
specified herein, and which shall be referred to as the Annual Capital Pledge. These monies
will be used by the City as pledged revenues to secure the fmancing of the new Recreation
Center, as set forth in Section Two; and
ii. A maximum of twenty five thousand dollars ($25,000.00) annually
for years 2010 through 2034, inclusive, to be disbursed as specified herein, and shall be
referred to as the Operations & Maintenance Pledge. These monies shall be used by the
City, along with other monies contributed by the City as described the Operational Budget
in Exhibit B, to fund the on -going operational and maintenance expenses of the Recreation
Complex. Said Operations and Maintenance Pledge, in the amount provided for herein,
shall be shown as a recurring expense in the GCRSSD annual budget. The parties agree that
upon the end of five full years of operation of the Recreation Center, and any subsequent
year, if the City's subsidy of the Recreation Center is less than $165,000.00 for at least two
full years, then GCRSSD shall not be required to pay to the City said Operations and
Maintenance Pledge. The City subsidy shall be calculated by subtracting Recreation Center
Department Expenses from Recreation Center Revenues. The elimination of the Operations
and Maintenance Pledge shall be formalized by written agreement of the City and
GCRSSD;
f. GCRSSD agrees that the Annual Capital Pledge and the Operations and
Maintenance Pledge as provided for herein supersede, and shall take precedence
over other existing informal financial obligations undertaken by GCRSSD, and all
future financial obligations undertaken by the District after the date of this
agreement GCRSSD further grants and assigns to the City a security interest in
the Annual Capital Pledge, pursuant to U.C.A. § 11-14-501, which shall be
superior to the claims or interests of all other persons, and which shall be applied
solely towards repayment of the sales tax revenue bonds to be issued by the City
for Recreation Center improvements, as specified in Section Two, below, and
toward operations and maintenance expenses as specified in this Agreement.
GCRSSD hereby warrants to the City, and authorizes the City to publish to
bondholders, that the Annual Capital Pledge is irrevocable until such time as the
bonds are paid in full. Consistent with the nonimpairment provisions of U.C.A. §
11-14-308, GCRSSD shall enact a resolution providing that until such time as the
bonds of the City are paid in full, or until the year 2034, whichever first occurs,
that the Annual Capital Pledge shall be irrevocable. GCRSSD agrees that the
Annual Capital Pledge and the Operations and Maintenance Pledge shall be paid
to the City prior to any other financial obligations undertaken by GCRSSD after
the date of this Agreement and any informal obligations GCRSSD may have.
ENTERED into as of the day and year first above written.
CITY OF MOAB
By:
Mayor David L. Sakrison
ATTEST:
By:
Rachel Ellison, City Recorder
GRAND COUNTY RECREATION SPECIAL
SERVICE DISTRICT
By:
Mike Steele, Chair
ATTEST:
Secretary