Loading...
HomeMy Public PortalAboutRES-CC-1996-18239757.001(•F) Moab, Utah July 9, 1996 The City Council of the City of Moab, Grand County, Utah met in regular session at its regular meeting place, 115 West 200 South, Moab, Utah, at 7:00 p.m. on the 9th day of July, 1996, with the following members present: Tom Stocks Mayor Richard Cooke Councilmember William D. McDougald Councilmember Paul Seibert Councilmember Jeanne M. Veteto Councilmember Also present: Sandra Beauregard Donna J. Metzler Absent: City Recorder City Manager After the meeting had been duly called to order and after other matters not pertinent to this Bond Resolution had been discussed, the City Recorder presented to the City Council a Certificate of Compliance With Open Meeting Law with respect to this July 9, 1996 meeting, a copy of which is attached hereto as Exhibit "A". The following Bond Resolution was then introduced in written form, was fully discussed, and pursuant to motion duly made by Councilmember William D. McDougald , and seconded by Councilmember paul Seibert adopted by the following vote: YEA: 4 NAY: 0 The Bond Resolution was then signed by the Mayor in open meeting and recorded by the City Recorder. The Bond Resolution is as follows: RESOLUTION NO. 18-96 A RESOLUTION authorizing the issuance and confirming the sale of $1,821,000 Sewer Revenue Bonds, Series 1996 of the City of Moab, Grand County, Utah, for the purpose of defraying a portion of the cost of constructing wastewater system improvements and related improvements; authorizing the publication of a Notice of Bonds to be Issued; prescribing the form of bonds, the terms and conditions of issuance and retirement and the security therefor; providing for the collection, handling and disposition of the revenues to be derived from the City's sewer system; authorizing the taking of all other actions necessary to the consummation of the transactions contemplated by this Bond Resolution; and related matters. WHEREAS, the City of Moab, Grand County, Utah (the "Issuer") desires to construct improvements to its sewer system (the "System") and desires to finance said improvements by issuing its Sewer Revenue Bonds, Series 1996 in the total principal amount of $1,821,000 (the "Series 1996 Bond or Bonds"); and WHEREAS, the Issuer does not have on hand money to pay the cost thereof, but the revenues to be derived by the Issuer from the operation of its System will not be pledged or hypothecated in any manner or for any purpose at the time of the issuance of the Series 1996 Bonds; and WHEREAS, the Utah Municipal Bond Act, Title 11, Chapter 14, Utah ' Code Annotated, 1953, as amended, provides that the Issuer may issue nonvoted revenue bonds as long as revenues generated from the revenue producing facilities of the Issuer are sufficient to pay for operation and maintenance of said facilities and debt service on all outstanding obligations secured by the revenues of said facilities; and WHEREAS, the Issuer has been advised that its System will generate sufficient revenues to pay for operation and maintenance of the System as well as debt service on •all proposed and outstanding obligations secured by the revenues of the System, including the Series 1996 Bonds authorized herein; and WHEREAS, the State of Utah acting through the Water Quality Board (the "Water Quality Board") has offered to purchase at par the Issuer's Series 1996 Bonds in the total principal amount of $1,821,000 and bearing no interest; and WHEREAS, the Water Quality Board desires to levy a hardship grant assessment on the unpaid principal balance of the Bonds in lieu of charging interest at the rate of 4.5% per annum; and 239757.001(PF) 2 06/28/96 WHEREAS, the Issuer desires to accept the offer of the Water Quality Board and to confirm the sale of the Series 1996 Bonds to the Water Quality Board: NOW, THEREFORE, Be It Resolved by the City Council of the City of Moab, Grand County, Utah, as follows: 239757.001(PF) 3 06/28/96 { c� ARTICLE I DEFINITIONS As used in this resolution, the following terms shall have the following meanings unless the context otherwise clearly indicates: (a) "Annual Debt Service" means the annual payment of the Hardship Grant Assessment and the principal, premium or penalty, if any, and interest to be paid by the Issuer during any Sinking Fund Year on the Series 1996 Bonds and all outstanding bonds or other forms of indebtedness issued on a parity with the Series 1996 Bonds and which are secured by the Revenues of the System. (b) "Bondholder" or "Registered Owner" means the registered holder of any Series 1996 Bond, the issuance of which is authorized herein. (c) "Depository Bank" means a "Qualified Depository" as defined in the State Money Management Act of 1974, Title 51, Chapter 7, Utah Code Annotated, 1953, as amended, selected by the Issuer to receive deposits for the Sewer Revenue Account as herein described, the deposits of which Bank shall be insured -by the Federal Deposit Insurance Corporation. (d) "Escrow Account" means an account to be held in escrow by the Escrow Agent pursuant to the Escrow Agreement, said account to be used for the purpose of depositing the proceeds of the sale of the Series 1996 Bonds and accounting for said proceeds pursuant to the terms of the Escrow Agreement. (e) "Escrow Agent" means the Utah State Treasurer, Salt Lake City, Utah, who shall so act pursuant to the terms of the Escrow Agreement. (f) "Escrow Agreement" means the agreement entered into among the Issuer, the Water Quality Board, and the Escrow Agent. (g) "Exchange Bonds" means the fully registered Series 1996 Bonds issued in substantially the form set forth in Exhibit "B-2", in exchange for the State Bonds representing the Series 1996 Bonds or in exchange for other Exchange Bonds, in the denomination of $1,000 or any integral multiple thereof. (h) "Fully Registered Bond" means any single Fully Registered Bond in the denominations) equal to the aggregate principal amount of the applicable Series 1996 Bonds authorized herein. (i) "Hardship Grant Assessment" means a special assessment to be levied by the Water Quality Board against the Issuer in consideration for agreeing to fmance the Project through the purchase of the Series 1996 Bonds and shall 239757.001(PF) 4 06/28/96 i C O equal 4.5 % per annum of the outstanding principal balance of the Series 1996 Bonds and shall be payable as provided herein. 0) successors. "Issuer" means the City of Moab, Grand County, Utah or its (k) "Net Revenues" means the Revenues after provision has been made for the payment therefrom of Operation and Maintenance Expenses. (1) "Operation and Maintenance Expenses" means all expenses reasonably incurred in connection with the operation and maintenance of the System, including the cost of water treatment, whether incurred by the Issuer or paid to any other municipality or company pursuant to contract or otherwise, repairs and renewals (other than capital improvements) necessary to keep the System in efficient operating condition, the cost of audits hereinafter required, fees of the paying agents on the Bonds, payment of premiums for insurance on the System hereafter required and, generally, all expenses, exclusive of depreciation, which under generally accepted accounting practices are properly allocable to operation and maintenance of the System, but only such expenses as are reasonably and properly necessary to the efficient operation and maintenance of the System shall be included. (m) "Paying Agent" means the person or persons authorized by the Issuer to pay the principal of and interest on delinquent payments, if any, on the Series 1996 Bonds and the Hardship Grant Assessment on behalf of the Issuer. The initial paying agent for the Series 1996 Bonds is the City Recorder of the Issuer. (n) "Project" means upgrading and expansion of the Issuer's wastewater treatment facility and the construction of a new interceptor sewer and collection lines, and other related improvements to the Issuer's System, including all equipment and necessary appurtenances thereof. (o) "Registrar" means the person or persons authorized by the Issuer to maintain the registration books with respect to the Series 1996 Bonds on behalf of the Issuer. The initial Registrar for the Series 1996 Bonds is the City Recorder of the Issuer. (p) "Revenues" means all gross income and revenues of any kind, from any source whatsoever, derived from the operation of the System, including, without limitation, all fees, rates, connection charges, and other charges, the gross revenues of all improvements, additions, and extensions of the System hereafter constructed or acquired, and all interest earned by and profits derived from the sale of investments made with the income and Revenues. 239757.001(PF) 5 06/28/96 (q) "Series 1996 Bond or Bonds" means the Sewer Revenue Bond, Series 1996 in the total principal amount of $1,821,000 purchased by Water Quality Board. (r) "Sinking Fund Year" means the twelve-month period beginning on July 1 of the calendar year and ending on the next succeeding June 30; provided, however, that the first Sinking Fund Year will begin on the delivery date of the Series 1996 Bond and will end on the next succeeding June 30. (s) "State Bonds" means the fully registered Series 1996 Bonds issued in substantially the form set forth in Exhibit "B-1" in the denominations equal to the aggregate principal amount of the Series 1996 Bonds. (t) "System" means the whole and each and every part of the wastewater system of the Issuer, including the Project to be acquired and constructed pursuant to this Bond Resolution, and all property, real, personal and mixed, of every nature now or hereafter owned by the Issuer and used or useful in the operation of said System, together with all improvements, extensions, enlargements, additions, and repairs thereto which may be made while any of the Bonds remain outstanding. (u) "Water Quality Board" means the State of Utah, Department of Environmental Quality, Water Quality Board, or any successor agency thereof. 239757.001(PF) 6 06/28/96 ARTICLE II ISSUANCE OF SERIES 1996 BONDS Section 2.1. Principal Amount. Designation. Series and Hardship Grant Assessment. The Series 1996 Bonds are hereby authorized for issuance for the purpose of providing funds (i) to finance a portion of the costs of the construction of the Project and (ii) to pay costs incurred in connection with the issuance of the Series 1996 Bonds. The Series 1996 Bonds shall be limited to $1,821,000 in aggregate principal amount, shall be issued (i) if issued as a State Bond(s), in the form set forth in Exhibit "B-1" and (ii) if issued as Exchange Bonds, in the form set forth in Exhibit "B-2", in fully registered form, shall bear no interest. If issued as Exchange Bonds, the Series 1996 Bonds shall be in the denomination of $1,000 or any integral multiple thereof. The Series 1996 Bonds shall be numbered from one (1) consecutively upward in order of delivery by the Registrar. The Series 1996 Bonds shall be designated as, and shall be distinguished from the bonds of all other series by the title, "Sewer Revenue Bonds, Series 1996". In consideration for the Water Quality Board's willingness to finance the Project through the purchase of the Series 1996 Bonds, the Issuer shall be obligated to pay to the Water Quality Board and any subsequent owner of the Series 1996 Bonds a Hardship Grant Assessment. The Hardship Grant Assessment shall accrue on the outstanding principal balance of the Series 1996 Bonds beginning on the date of initial delivery of the Series 1996 Bonds and shall be computed in the same manner as interest such that as the outstanding principal balance of the Series 1996 Bonds is increased or decreased, the Hardship Grant Assessment shall be computed on the basis of the increased or decreased principal balance from the date of such increase or decrease to the earlier of (i) the next change in principal balance or (ii) the next succeeding' payment date. The payment dates for the Hardship Grant Assessment shall be February 1, 1997 and each February thereafter until the Series 1996 Bonds are paid in full. Section 2.2. Date and Maturities. The Series 1996 Bonds shall be dated as of their date of delivery and shall be paid as provided in this Section II.2.2. The Series 1996 Bonds shall be initially issued as one fully registered State Bond. Except as provided in the next succeeding paragraph, principal payments, whether at maturity or by redemption, shall be payable upon presentation of the applicable Series 1996 Bond at the offices of the Paying Agent for endorsement or surrender, or of any successor Paying Agent. Payment of interest on delinquent payments and the Hardship Grant Assessment shall be made to the Registered Owner thereof and shall be paid by check or draft mailed to the Registered Owner thereof at his address as it appears on the registration books of the Issuer maintained by the Registrar or at such other address as is furnished to the Registrar in writing by such Registered Owner. All payments shall be made in any coin or currency which on the date of payment is legal tender for the payment of debts due the United States of America. 239757.001(PF) 7 07/08/96 So long as the Water Quality Board is the Registered Owner of the State Bonds, payments of principal and interest on delinquent payments on the Series 1996 Bonds and payments of the Hardship Grant Assessment shall be made by check or draft and mailed to the Water Quality Board as the Registered Owner at the address shown on the registration books maintained by the City Recorder. So long as the Water Quality Board is the Registered Owner of the State Bond, in lieu of presentation or the surrender of the State Bond to the Paying Agent for notations by the Paying Agent of such payments, the Water Quality Board, by its Chairman or his designee, shall endorse such payments upon the State Bond. The Issuer shall make a Hardship Grant Assessment payment on February 1, 1997 and February 1, 1998. Thereafter, the Issuer shall make the principal payments stated for each year, together with a Hardship Grant Assessment, beginning February 1, 1999 and continuing on each February 1 thereafter until the Total Principal Sum shall be paid in full, as follows: Principal Principal February 1 Maturing February 1 Maturing 1999 $148,000 - 2004 $185,000 2000 $155,000 2005 $193,000 2001 $162,000 2006 $201,000 2002 $169,000 2007 $211,000 2003 $177,000 2008 $220,000 Section 2.3. Optional Redemption and Redemption Prices. Each principal payment of the Series 1996 Bond is subject to prepayment and redemption at any time, in whole or in part (if in part, in integral multiples of $1,000), at the election of the Issuer, in inverse order of the due dates thereof, and by lot selected by the Issuer if less than all of the State Bonds of a particular due date are to be redeemed, uponnotice as provided in Section 11.2.4 hereof with respect to Exchange Bonds, and upon at least thirty (30) days' prior written notice of the amount of prepayment and the date scheduled for prepayment to the Water Quality Board with respect to the State Bonds, and at a redemption price equal to 100 % of the principal amount to be prepaid or redeemed, plus the accrued, but unpaid, portion of the Hardship Grant Assessment computed to the date of redemption. Section 2.4. Notice of Redemption for Exchange Bonds. (a) In the event any of the Exchange Bonds are to be redeemed, the Registrar shall cause notice to be given as provided in this Section II.2.4. Notice of such redemption shall be mailed by first class mail, postage prepaid, to all Registered Owners of Exchange Bonds to be redeemed at their addresses as they appear on the registration books of the Registrar at least thirty (30) days but not more than forty-five (45) days prior to the date fixed for redemption. Such notice shall state the following information: 239757.001(PF) 8 07/08/96 (i) the complete official name of the Exchange Bonds, including series, to be redeemed, the identification numbers of the Exchange Bonds being redeemed; (ii) any other descriptive information needed to identify accurately the Exchange Bonds being redeemed, including, but not limited to, the original issue date of such Exchange Bonds; (iii) in the case of partial redemption of any Exchange Bonds, the respective principal amounts thereof to be redeemed; (iv) the date of mailing of redemption notices and the redemption date; (v) the redemption price; (vi) that on the redemption date the redemption price will become due and payable upon each such Exchange Bond or portion thereof called for redemption; and (vii) the place where such Exchange Bonds are to be surrendered for payment of the redemption price, designating the name and address of the redemption agent with the name of a contact person and telephone number. (b) Upon the payment of the redemption price of Exchange Bonds being redeemed, each check or other transfer of funds issued for such purpose shall identify the Exchange Bonds being redeemed with the proceeds of such check or other transfer. (c) The Registrar shall not give notice of such a redemption until there are on deposit with the Paying Agent sufficient funds for the payment of the redemption price. Notice of redemption shall be given, not more than forty-five (45) days nor less than thirty (30) days prior to the redemption date, to Registered Owners of the Exchange Bonds, or portions thereof, to be redeemed. A second notice of redemption shall be given, not later than ninety (90) days subsequent to the redemption date, to Registered Owners of Exchange Bonds or portions thereof redeemed but who failed to deliver Series 1996 Bonds for redemption prior to the 60th day following such redemption date. Any notice mailed shall be conclusively presumed to have been duly given, whether or not the Registered Owner of such Series 1996 Bonds receives the notice. Receipt of such notice, shall not be a condition precedent to such redemption, and failure so to receive any such notice by any of such Registered Owners shall not affect the validity of the proceedings for the redemption of the Series 1996 Bonds. 239757.001(PF) 9 06/28/96 C� In case any Exchange Bond is to be redeemed in part only, the notice of redemption which relates to such Exchange Bond shall state also that on or after the redemption date, upon surrender of such Series 1996 Bond, a new Series 1996 Bond in principal amount equal to the unredeemed portion of such Series 1996 Bond will be issued. Section 2.5. Execution and Delivery of the Series 1996 Bonds. The Mayor is hereby authorized to execute by manual or facsimile signature the Series 1996 Bonds and the City Recorder to countersign by manual or facsimile signature the Series 1996 Bonds and to have imprinted, engraved, lithographed, stamped or otherwise placed on the Series 1996 Bonds the official seal of the Issuer. The City Recorder is hereby authorized to deliver to the Water Quality Board the Series 1996 Bonds upon payment to the Issuer of the proceeds of the Series 1996 Bonds. Section 2.6. Delinquent Payment. Payments on the Series 1996 Bonds and payments of the Hardship Grant Assessment which are delinquent from the due date thereof shall draw interest at the rate of eighteen percent (18%) per annum on the delinquent payment from said due date until paid in full. Section 2.7. Exchange of State Bonds. As long as the Water Quality Board is the sole Regisfered Owner of the Series 1996 Bonds, the Series 1996 Bonds shall be issued only as the State Bonds in the form prescribed in Exhibit "B-1". It is recognized that the Water Quality Board may sell or otherwise transfer the Series 1996 Bonds pursuant to the provisions of the State Financing Consolidation Act, Title 63, Chapter 65, Utah Code Annotated 1953, as amended, or otherwise. In the event the Water Quality Board determines to sell or otherwise transfer all or a portion of the Series 1996 Bonds pursuant to the State Financing Consolidation Act, or otherwise, the State Bonds shall be exchanged at the office of the Paying Agent for a like aggregate principal amount of Exchange Bonds in accordance with the provisions of this Section II.2.7 and Section III.3.1 hereof. Exchange Bonds may thereafter be exchanged from time to time for other Exchange Bonds in accordance with Section I11.3.1 hereof. Any Series 1996 Bond, or any portion thereof, which is sold or otherwise transferred or liquidated by the Water Quality Board pursuant to the State Financing Consolidation Act, or otherwise, shall be in the form of an Exchange Bond prescribed in Exhibit "B-2", and shall be executed pursuant to authorization contained in Section 11.2.5 hereof. Each principal payment on the State Bonds not previously paid or cancelled shall be represented by an equivalent principal amount of Exchange Bonds, in authorized denominations, and of like maturity. The Issuer and its officers shall execute and deliver such documents and perform such acts as may reasonably be required by the Issuer to accomplish the exchange of the State Bonds for Exchange Bonds, provided that the Water Quality Board shall pay or cause to be paid all costs and other charges incident to such exchange and the Issuer shall have no obligation to pay any such costs or charges. 239757.001(PF) 10 06/28/96 ARTICLE III REGISTRATION, PAYMENT, AND FLOW OF FUNDS Section 3.1. Execution of and Registration of Series 1996 Bonds; Persons Treated as Owners. The Series 1996 Bonds shall be signed by the Issuer and the Issuer shall cause books for the registration and for the transfer of the Series 1996 Bonds to be kept by the City Recorder who is hereby appointed the Registrar of the Issuer with respect to the Series 1996 Bonds. Any Series 1996 Bond may, in accordance with its terms, be transferred only upon the registration books kept by the Registrar, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Series 1996 Bond for cancellation, accompanied by delivery of a written instrument of transfer in a form approved by the Registrar, duly executed. No transfer shall be effective until entered on the registration books kept by the Registrar. Upon surrender for transfer of any Series 1996 Bond duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Registrar and duly executed by, the Registered Owner or his attorney duly authorized in writing, the Issuer shall execute and deliver in the name of the transferee or transferees, a new Bond or Bonds of the same maturity and series for a like aggregate principal amount as the Series 1996 Bond surrendered for transfer. Series 1996 Bonds may be exchanged at the office of the Registrar for a like aggregate principal amount of Series 1996 Bonds of the same series or other authorized denominations and the same maturity. The execution by the Issuer of any Series 1996 Bond of any authorized denomination shall constitute full and due authorization of such denomination, and the Registrar shall thereby be authorized to deliver such Series 1996 Bond. The Registrar shall not be required to transfer or exchange any Exchange Bond at any time following the mailing of notice calling such Series 1996 Bond for redemption. Series 1996 Bonds surrendered for payment, redemption or exchange, shall be promptly cancelled and destroyed by the Issuer. The Issuer, the Registrar and the Paying Agent may treat and consider the person in whose name each Series 1996 Bond is registered on the registration books kept by the Registrar as the holder and absolute owner thereof for the purpose of receiving payment of, or on account of, the principal or redemption price thereof and for all other purposes whatsoever, and neither the Issuer, nor the Registrar nor the Paying Agent shall be affected by any notice to the contrary. Payment of any Series 1996 Bond shall be made only to or upon order of the Registered Owner thereof or his legal representative, but such registration may be changed as hereinabove provided. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Series 1996 Bond to the extent of the sum or sums so paid. The Issuer may require the payment by the Registered Owner requesting exchange or transfer of Series 1996 Bonds of any tax or other governmental charge and any service charge which are required to be paid with respect to such exchange or transfer and such charges shall be paid before such new Series 1996 Bond shall be delivered. 239757.001(PF) 11 06/28/96 Section 3.2. Deposit of Bond Proceeds. The proceeds from the sale of the Series 1996 Bonds shall be deposited upon delivery in the Escrow Account and shall be disbursed pursuant to the provisions of the Escrow Agreement. All monies deposited in the Escrow Account shall be used solely for the purpose of defraying all or a portion of the costs of the Project including the payment of costs of issuance of the Series 1996 Bonds. Any unexpended balance remaining in the Escrow Account after completion of the Project shall be disbursed in accordance with the terms of the Escrow Agreement.. That portion of the unexpended balance disbursed to the Issuer shall be paid immediately into the "City of Moab, Utah Sewer Revenue Bond Sinking Fund", hereinafter referred to herein as the "Sinking Fund" established hereunder, and shall applied as a prepayment of the Series 1996 Bonds. Principal last to become due shall be prepaid first, and in the event less than all of the principal amount of the State Bonds maturing on the last due date are to be redeemed, the Issuer shall by lot select those State Bonds to be prepaid. Proceeds from the sale of the Series 1996 Bonds on deposit in the Escrow Account, may at the discretion of the Issuer, be invested by the Escrow Agent as provided in the Escrow Agreement. Following the transfer of unexpended funds from the Escrow Account, the Escrow Account will be closed. Section 3.3. The Series 1996 Bonds Constitute Special Limited Obligations. Notwithstanding anything in this Bond Resolution elsewhere contained, the principal on the Series 1936 Bonds and the payment of the Hardship Grant Assessment shall be payable out of 100 % of the Net Revenues, and in no event shall the Series 1996 Bonds be deemed or construed to be a general indebtedness of the Issuer or payable from any funds of the Issuer other than those derived from the operation of the System. The Issuer may, in its sole discretion, but without obligation and subject to the Constitution, laws, and budgetary requirements of the State of Utah, make available properly budgeted and legally available funds to defray any insufficiency of Revenues to pay the Series 1996 Bonds; provided however, the Issuer has not covenanted and cannot covenant to make said funds available and has not pledged any of such funds for such purpose. Section 3.4. Flow of Funds. From and after the earlier of the delivery date of the Series 1996 Bonds, and until all the Series 1996 Bonds have been fully paid, the Revenues shall be set aside into the City of Moab Sewer Revenue Fund referred to herein as "Revenue Fund", established hereunder, to be held by the Depository Bank. The Issuer will thereafter make accounting allocations of the funds deposited in said Revenue Fund for the following purposes and in the following priority: (a) From the amounts in the Revenue Fund there shall first be paid all Operation and Maintenance Expenses of the System. For this purpose the Issuer shall establish on its books an account known as the "Expense Account" to which shall be allocated monthly, on or before the tenth day of each month, such portion of the Revenue Account as is estimated to be required for Operation and Maintenance Expenses of the System for the following month. There shall be allocated to the Expense Account from time to time during the month such 239757.001(PF) 12 06/28/96 C O additional amounts as may be required to make payments of Operation and Maintenance Expenses for which the amounts theretofore allocated to the Expense Account are insufficient. At the end of each Sinking Fund Year all amounts in the Expense Account in excess of that required to pay Operation and Maintenance Expenses then due shall be transferred to the Sinking Fund established as hereinafter provided. (b) All amounts in the Revenue Fund not allocated _ to the Expense Account shall be allocated to the Sinking Fund: (i) Of the amounts allocated to the Sinking Fund there shall be allocated the following amounts to a subaccount established on the books of the Issuer known as the "Bond Account" such amounts as will assure, to the extent of the availability of Net Revenues from the System, the prompt payment of the principal and interest on the Series 1996 Bonds and the Hardship Grant Assessment as shall become due. The amount to be so set aside with respect to the Bonds shall, as nearly as may be practicable, be set aside and allocated to the Bond Account monthly, on or before the tenth day of each month, beginning September 10, 1996, and shall equal 1/12 (in the case of the first Sinking Fund Year, 1/5) of the Hardship Grant Assessment next falling due on the Bonds, if any, and 1/12 of the amount of the principal on the payment next due on the Bonds to the end that there will be sufficient funds allocated to the Bond Account to pay the principal and interest, if any, on the Series 1996 Bonds and Hardship Grant Assessment as and when the same become due. Amounts allocated to the Bond Account shall be used solely for the purpose of paying principal and interest on the Series 1996 Bonds and Hardship Grant Assessment and shall not be reallocated, transferred or paid out for any other purpose. (ii) Of the amounts allocated to the Sinking Fund after there shall have been allocated the amounts required to be allocated under (i) above, there shall be allocated monthly on or before the tenth day of each month, beginning September 10, 1996, to the "Reserve Account" established on the books of the Issuer the sum of $3,197 plus such additional amount as may be required to meet any monthly installment to the Reserve Account not therefore made in whole or in part, such allocations shall continue until there shall have been accumulated in the Reserve Account an amount equal to $230,136. (In the event insufficient moneys are available to make full allocation to the reserve account, such moneys shall be allocated pro rata to the monthly allocation requirement of the reserve fund.) Amounts allocated to the Reserve Account shall be used to pay the principal and interest falling due on the Series 1996 Bonds and the Hardship Grant Assessment at any time when there are not sufficient funds in the Bond Account to pay the same, but pending such use may be invested as hereafter provided. When the Reserve Accounts 239757.001(PF) 13 miosi96 have been accumulated as in this paragraph provided, no further allocations to the Reserve Accounts need be made unless payments from the Reserve Accounts have reduced the same below the amounts required by this paragraph, in which event allocations shall be resumed until such deficiency has been remedied. (iii) Of the amounts allocated to the Sinking Fund after there shall have been allocated the amounts required to be allocated to the Bond Account and the Reserve Account, there shall be allocated monthly, on or before the tenth day of each month, to a subaccount established on the books of the Issuer known as the Emergency Repair and Replacement Reserve, referred to herein as "Emergency Reserve Account," the sum of $1,599, plus such additional amount as may be required to meet any monthly installment to said Account which has not been previously paid in whole or in part. Such allocations shall continue until there shall have been accumulated in said Account a sum equal to $115,068. Said Account shall be used solely for emergency repairs and replacements to the System, should such repairs or replacements be necessary. If at any time -the amount in said Account is less than the balance prescribed above, monthly deposits shall be resumed until the required amount has been so transferred to said Account. (iv) All remaining funds, if any, in the Sinking Fund after all of the payments required to be made into the Bond Account, the Reserve Account and the Emergency Repair and Replacement Account have been made, may be used by the Issuer (a) to prepay or redeem the Series 1996 Bonds in whole or in part, (b) to make extensions, improvements, additions, repairs, and replacements to the System, or (c) to be applied to any other lawful purpose as determined by the Issuer. (c) If at any time, the Net Revenues derived by the Issuer from the operation of the System shall be insufficient to make any payment to any of the above funds or accounts on the date or dates specified, the Issuer shall make good the amount of such deficiency by making additional payments out of the first available Net Revenues thereafter derived by the Issuer from the operation of the System. Section 3.5. Investment of Funds. Any funds allocated to the Bond Account shall be invested in direct obligations of, or obligations, the principal of and interest on which are guaranteed by the United States of America including, but not limited to time certificates of deposit, repurchase agreements and treasury bills and notes. Such investments shall be held by the Depository Bank and when the Issuer determines that it is necessary to use the monies in said Funds for the purpose for which it was created, the Depository Bank shall, at the direction of the Issuer, liquidate at prevailing market prices so much of said investments as may be necessary. Any funds allocated to the 239757.001(n) 14 07/08/96 o O Reserve Account and Emergency Repair and Replacement Account may, at the discretion of the Issuer, be invested in accordance with the State Money Management Act. All income derived from the investment of the funds of the Bond Account and the Emergency Repair and Replacement Account shall be maintained in said accounts and disbursed along with the other moneys on deposit therein as herein provided. All income derived from the investment of the Reserve Account shall at the end of each Sinking Fund Year be transferred by the Issuer to the Bond Account so long as the Reserve Account after said transfer have funds equaling $230,136. Should the Reserve Account have less than. $230,136, then said income shall be maintained in the Reserve Account until total deposits in the Account equals $230,136. There shall not be required to be in the Bond Account and the Reserve Account at any time more than the total amount required to pay the total principal outstanding of the Series 1996 Bonds and the Hardship Grant Assessment accrued thereon. Whenever the money in the Bond Account and the Reserve Account equal the total principal amount of the Series 1996 Bonds outstanding and the Hardship Grant Assessment accrued thereon, the money in said Accounts shall be used to prepay all of the Series 1996 Bonds. 239757.001(PF) 15 07/08/96 ARTICLE IV COVENANTS Section 4.1. Covenants of Issuer. The Issuer hereby covenants and agrees with each and every holder of the Series 1996 Bonds the following: (a) The rates for all sewer service supplied by the System to the Issuer and its inhabitants and to all customers within or without the boundaries of the Issuer shall be sufficient for.the retirement and/or redemption of the Series 1996 Bonds, provided such rates must be reasonable rates for the type, kind, and character of the service rendered. There shall be no free service and there shall be charged against all users of the System, including the Issuer, such rates and amounts as shall be adequate to meet the debt service payments on the Series 1996 Bonds and any Parity Bonds (as defined in IV.4.2) when due to pay the Hardship Grant Assessment, and to make available for purposes having priority junior to the Sinking Fund in the application of the Net Revenues in each Sinking Fund Year, at least twenty percent (20%) of the Annual Debt Service for each such year. All Net Revenues, including those received from the Issuer, shall be subject to distribution for the payment of the Series 1996 Bonds and the payment of the Hardship Grant Assessment, as hereinabove provided. (b) Each Bondholder shall have a right, in addition to all other rights afforded it by the laws of Utah, to apply to and obtain from any court of competent jurisdiction such decree or order as may be necessary to require the Issuer to charge and collect reasonable rates for services supplied by the System sufficient to meet all requirements of this Bond Resolution. (c) The Issuer will maintain the System in goodcondition and operate the same in an efficient manner and at reasonable cost. (d) So long as any Series 1996 Bonds remain outstanding, proper books of record and account will be kept by the Issuer separate and apart from all other records and accounts, showing complete and correct entries of all transactions relating to the System. Each Bondholder or any duly authorized agent or agents of such holder shall have the right at all reasonable times to inspect all records, accounts and data relating thereto and to inspect the System and all properties constituting the System. Except as otherwise provided herein, the Issuer further agrees that it will within one hundred eighty (180) days following the close of each Sinking Fund Year cause an audit of such books and accounts to be made by an independent firm of certified public accountants, showing the receipts and disbursements for account of the System, and that such audit will be available for inspection by the Bondholder; provided, however, during such periods of time as the Water Quality Board is the Registered Owner of the State Bonds, each such audit will be supplied to the Water Quality Board as soon as completed without prior request therefor by the Water Quality Board. 239757.001(PF) 16 07/08/96 Each such audit, in addition to whatever matters may be thought proper by the accountant to be included therein, shall include the following: (i) A statement in detail of the income and expenditures of the System for such Sinking Fund Year; (ii) A balance sheet as of the end of such Sinking Fund Year; (iii) The accountant's comments regarding the manner in which the Issuer has carried out the requirements of this Bond Resolution, and the accountant's recommendations for any change or improvement in the operation of the System; (iv) A list of the insurance policies in force at the end of the Sinking Fund Year, setting out as to each policy, the amount of the policy, the risks covered, the name of the insurer, and the expiration date of the policy; (v) An analysis of all funds and accounts created in this Bond Resolution, setting out all -deposits and disbursements made during the Sinking Fund Year and the amount in each fund or account at the end of the Sinking Fund Year; (vi) The number of sewer connections within the boundaries of the Issuer, and applications for sewer service on hand at the end of the Sinking Fund Year; (vii) The total billings for such Sinking Fund Year; (viii) All schedules of rates and charges imposed for sewer service during the Sinking Fund Year. The Bondholder may, upon written request from the Issuer setting forth the reasons why a certified audit is not necessary or is impractical, waive the audit requirements for any particular Sinking Fund Year set forth in this Subsection IV.4.1.(d), provided, however, that such waiver shall not apply to the reporting requirements of the Issuer set forth in Subsection IV.4.1.(e) herein. (e) In addition to the reporting requirements set forth in Subsection IV.4.1.(d) above, the Issuer shall submit to the Water Quality Board within one hundred eighty (180) days following the close of each Sinking Fund Year, a summary report substantially in the form as provided by the Water Quality Board to the Issuer upon purchase of the Series 1996 Bonds. All expenses incurred in compiling the information required by this section shall be regarded and paid as an Operation and Maintenance Expense. If a 239757.001(PF) 17 06/28/96 C Bondholder is other than the Water Quality Board, the Issuer agrees to furnish a copy of such information to such Bondholder at its request after the close of each Sinking Fund Year. Any Bondholder shall have the right to discuss with the accountant compiling such information the contents thereof and to ask for such additional information as it may reasonably require. (f) The Bondholder shall have the right at all reasonable times to inspect the System, and all records, accounts and data of the Issuer relating thereto, and upon request, the Issuer will furnish to it financial statements and other information relating to the Issuer and the System as it may from time to time reasonably require. (g) The Issuer, in its operation of the System, will carry insurance, including, but not limited to, workmen's compensation insurance and public liability insurance, in such amounts and to such extent as is normally carried by others operating public utilities of the same type. The cost of such insurance shall be considered an Operation and Maintenance Expense of the System. In the event of loss or damage, insurance proceeds shall be used first for the purpose of restoring or replacing the property lost or damaged. Any remainder shall be paid into the Sinking Fund. - (h) The Issuer will not sell, lease, mortgage, encumber, or in any manner dispose of the System or any substantial part thereof, including any and all extensions and additions that may be made thereto, until all Bonds have been paid in full, except that the Issuer may sell any portion of said property which shall have been replaced by other property of at least equal value, or which shall cease to be necessary for the efficient operation of the System, provided, however, that in the event of any sale as aforesaid, the proceeds of such sale shall • be paid into the Sinking Fund. (i) The Issuer may consolidate the bills submitted for sewer service with those submitted for water service, if applicable, for those persons who are liable for the payment of charges for such services and require that each such consolidated bill be paid in full as a unit, and refuse to permit payment of one portion without payment of the remainder. Any bill not paid within thirty (30) days from the date it is mailed to the customer shall be deemed delinquent. The Issuer hereby agrees that if any sewer bill remains delinquent for more than sixty (60) days, it will initiate proceedings to cause all water service to the sewer user concerned to be cut off immediately. (j) Every officer, agent or employee of the Issuer having custody or control of any of the Revenues or of the proceeds of the Series 1996 Bonds shall be bonded by a responsible corporate surety in an amount not less than twice the annual debt service of the Series 1996 Bonds. The premiums on such surety bond shall not be an Operation and Maintenance Expense of the System. 239757.001(n) 18 06/28/96 (k) The Issuer shall commence and complete the acquisition and construction of the Project with all practical dispatch and will cause all construction to be effected in a sound and economical manner (1) The Issuer will from time to time duly pay and discharge or cause to be paid all taxes, assessments and other governmental charges, if any, lawfully imposed upon the System or any part thereof or upon the Revenues, as well as any lawful claims for labor, materials or supplies which. if unpaid might by law become a lien or charge upon the System or the Revenues or any part thereof or which might impair the security of the Bonds, except when the Issuer in good faith contests its liability to pay the same. (m) The Issuer will not grant a franchise for the operation of any competing sewer system within its corporate limits, as long as the Series 1996 Bonds authorized herein remain outstanding. (n) The Issuer, in order to assure the efficient management and operation of the System and to assure the Bondholders from time to time that the System will be operated on sound business principles, will employ competent and experienced management for the System, will use its best efforts to see that the System -is at all times operated and maintained in first-class repair and condition and in such manner that the operating efficiency thereof shall be of the highest character, and will use its best efforts to see that Operation and Maintenance Expenses are at no time in excess of the Revenues reasonably available for the payment thereof. (o) All payments falling due on the Series 1996 Bonds shall be made to the Bondholder thereof at par and all charges made by the Depository Bank for its services shall be paid by the Issuer. (p) The Issuer will maintain its corporate identity, will make no attempt to cause its corporate existence to be abolished and will resist all attempts by other municipal corporations to annex all or any part of the territory now or hereafter in the Issuer or served by the System. (q) The Issuer covenants to comply with all applicable state and federal regulations related to the Utah State Revolving Fund administered by the Water Quality Board, including, but not limited to, compliance with Title VI of the Clean Water Act of 1987, OMB Circular A-128, the Utah Waste Water Loan Program policies and guidelines, the Utah Municipal Bond Act, the State Money Management Act, the Utah Procurement Code, and the State of Utah Legal Compliance Audit Guide. Section 4.2. Additional Indebtedness. No additional indebtedness, bonds or notes of the Issuer payable on a priority superior to the Series 1996 Bonds out of the Net Revenues from the System shall be created or incurred by the Issuer without the prior 239757.001(PF) 19 07/08/96 written consent of all holders of the Series 1996 Bonds. Furthermore, the Series 1996 Bonds shall not be entitled to any priority one over the other in application of the Net Revenues of the System, regardless of the time or times of their issuance, it being the intention of the Issuer that there shall be no priority among the Series 1996 Bonds authorized to be issued pursuant to this Bond Resolution regardless of the fact that they may be actually issued and delivered at different times. It is expressly agreed and covenanted that the Issuer will not hereafter issue any bonds or obligations payable from the Net Revenues of the System, or any part thereof, or which constitutes a lien on such Net Revenues or on the System until all Series 1996 Bonds have been paid in full unless such additional bonds are issued in such manner that they are in all respects subordinate to the Series 1996 Bonds. The provisions of the foregoing paragraph are subject to the following two exceptions: (1) The Series 1996 Bonds or any part thereof may be refunded. The refunding bonds so issued shall enjoy a lien on the Net Revenues on a parity with the Series 1996 Bonds except that if fewer than all of the Series 1996 Bonds outstanding at the time are so refunded, no refunding bonds shall bear interest at a rate higher or mature at a date earlier than the corresponding Bond refunded thereby without the consent of the owners and holders of all of the unrefunded Series 1996 Bonds. In all other respects, refunding bonds may be secured in such manner and may be payable from such sources and be subject to other terms and provisions that may be provided in the resolution authorizing their issuance. Refunding bonds may be exchanged with the consent of the Bondholder for not less than a like principal amount of the Series 1996 Bonds authorized to be refunded, may be sold or may be exchanged in part or sold in part. If sold, the proceeds of the sale not required for the payment of expenses shall be used to refund that portion of the Series 1996 Bonds refunded. (2) Additional bonds may be issued on a parity with the Series 1996 Bonds herein authorized if all of the following conditions are met at the time of the issuance of such additional bonds (herein referred to as "Parity Bonds"): (a) The Net Revenues of the System in the Sinking Fund Year preceding the year in which the Parity Bonds are to be issued were 120 % of the average Annual Debt Service including the Hardship Grant Assessment on all of the Bonds and Parity Bonds then outstanding and the Parity Bonds so proposed to be issued; provided, this limitation may be waived or modified by the written consent of the registered owners and holders of 100 % of the principal amount of the Bonds and Parity Bonds then outstanding. (b) All payments required by this Bond Resolution to be made into the Sinking Fund must have been made in full and there must be in 239757.001(PF) 20 07/08/96 c each reserve fund the full amount required by this Bond Resolution to be accumulated therein. (c) The Parity Bonds must be payable as to principal on February 1 of each year in which principal falls due. (d) The proceedings authorizing such Parity Bonds must raise the amount to which the reserve funds shall be accumulated to an amount no less than the highest future Annual Debt Service of all Bonds and Parity Bonds then outstanding and the Parity Bonds so proposed to be issued and must require the accumulation' of such amount in the Reserve Account to be accomplished within six (6) years after delivery of such Parity Bonds. (e) The proceeds of the Parity Bonds must be used for the making of improvements, extensions, renewals, replacements or repairs to the System. 239757.001(PF) 21 07/08/96 ARTICLE V MISCELLANEOUS Section 5.1. Default and Remedies. Failure of the Issuer to perform any covenant or requirement of the Issuer under this Bond Resolution within thirty (30) days after having been notified in writing by a Bondholder of such failure, shall constitute an event of default hereunder and shall allow each Bondholder to take the following enforcement remedies: (a) The Bondholder may require the Issuer to pay an interest penalty equal to eighteen percent (18%) per annum of the outstanding principal amount on the Series 1996 Bonds and the Hardship Grant Assessment, said interest penalty to accrue from the date of the notice of the Bondholder to the Issuer referenced hereinabove until the default is cured by the Issuer. Said interest penalty shall be paid on each succeeding payment date until the default is cured by the Issuer. (b) The Bondholder may appoint a trustee bank to act as a receiver of the Revenues of the System for purposes of applying said Revenues toward the Revenue allocations required in Section HI.3.4 herein and in general, protecting and enforcing each Bondholder's rights thereto, in which case, all administrative costs of the trustee bank in performing said function shall be paid by the Issuer. No remedy conferred herein is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to any other remedy given to each Bondholder hereunder or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right, power or remedy accruing upon a default shall impair any such right, power or remedy or shall be construed to be a waiver of any default or acquiescence therein; and every such right, power or remedy may be exercised from time to time as may be deemed expedient. Section 5.2. Amendments to Bond Resolution. Provisions of this Bond Resolution shall constitute a contract between the Issuer and the Bondholder; and after the issuance of the Series 1996 Bonds, no change, variation or alteration of any kind in the provisions of this Bond Resolution shall be made in any manner until such time as all of the Series 1996 Bonds have been paid in full except as hereinafter provided. The Bondholders shall have the right from time to time to consent to and approve the adoption by the Issuer of resolutions modifying or amending any of the terms or provisions contained in this Bond Resolution in the manner and to the extent set out below. Whenever the Issuer shall propose to amend or modify this Bond Resolution under the provisions of this section, it shall cause notice of the proposed amendment to be sent to all Bondholders of all Series 1996 Bonds then outstanding. Such notice shall briefly 239757.001(PF) 22 06/28/96 set forth the nature of the proposed amendment and shall state that a copy of the proposed amendatory resolution is on file in the office of the City Recorder for public inspection. Should a Bondholder consent to the proposed amendment to this Bond Resolution, it shall submit to the Issuer a written instrument which shall refer to the proposed amendatory resolution described in said notice and shall specifically consent to and approve the adoption thereof. Upon receipt of Bondholder consents representing at least 75 % of the principal of Series 1996 Bonds outstanding, the governing body of the Issuer may adopt said amendatory resolution, and it shall become effective, provided, however, that _nothing in this Section V.5.2 shall permit or be construed as permitting (a) an extension of the stated maturity or reduction in the principal amount of, or reduction in the rate of or extension of the time of paying of interest on delinquent payments, without the consent of the Bondholder of such Series 1996 Bonds, or (b) a reduction in the amount or extension of the time of any payment required by any Fund or account established hereunder without the consent of the Bondholders of all the Series 1996 Bonds which would be affected by the action to be taken, or (c) a reduction in the aforesaid aggregate principal amount of Series 1996 Bonds, the Bondholders of which are required to consent to any such waiver or a mandatory resolution, or .(d) affect the rights of the Bondholders of less than all Series 1996 Bonds then outstanding, without the consent of the Bondholders of all the Series 1996 Bonds at the time outstanding which would be affected by the action to be taken. If a Bondholder at the time of the adoption of such amendatory resolution shall have consented to and approved the adoption thereof as herein provided, said Bondholder shall not have any right or interest to object to the adoption of such amendatory resolution or to object to any of the terms or provision therein contained or to the operation thereof or to enjoin or restrain the Issuer from taking any action pursuant to the provisions thereof. Any consent given by a Bondholder pursuant to the provisions of this section shall be conclusive and binding upon all successive Bondholders. The fact and date of the execution of any instrument under the provisions of this section may be proved by the certificate of any officer in any jurisdiction who by the laws thereof is authorized to take acknowledgments of deeds within such jurisdiction, that the person signing such instrument acknowledged before him the execution thereof, or may be proved by an affidavit of a witness to such execution sworn to before such officer. Section 5.3. Maintenance of Proceedings. A certified copy of this Bond Resolution and every amendatory or supplemental ordinance or resolution shall be kept on file in the office of the City Recorder where it shall be made available for inspection by any Bondholder or his agent. Upon payment of the reasonable cost of preparing the same, a certified copy of this Bond Resolution, any amendatory or supplemental ordinance or resolution will be furnished to any Bondholder. The Bondholders may, by suit, action, mandamus, injunction or other proceedings, either at law or in equity, enforce or compel performance of all duties and obligations required by this Bond Resolution to be done or performed by the Issuer. Nothing contained herein, however, shall be construed as imposing on the Issuer any duty or obligation to levy any tax either 239757.001(PF) 23 06/28/96 to pay the principal of or interest, if any, on the Series 1996 Bonds authorized herein or to meet any obligation contained herein concerning the Series 1996 Bonds. Section 5.4. Defeasance of Series 1996 Bonds. If the Issuer shall pay or cause to be paid, or there shall be otherwise paid or provision for payment made to the Registered Owner of the Series 1996 Bonds for the payments due or to become due thereon at the times and in the manner stipulated therein, then the first lien pledge of the Net Revenues under this Bond Resolution and any and all estate, right, title and interest in and to any of the funds and accounts created hereunder (except moneys or securities held by a Depository Bank for the payment of the Series 1996 Bonds) shall be cancelled and discharged. Any Series 1996 Bond shall be deemed to be paid within the meaning of this section when payment of the Series 1996 Bonds (whether such due date be by reason of maturity or upon prepayment or redemption as provided herein) shall have been made in accordance with the terms thereof. At such time as the Series 1996 Bonds shall be deemed to be paid hereunder, they shall no longer be secured by or entitled to the benefits hereof (except with respect to the moneys and securities held by a Depository Bank for the payment of the Series 1996 Bonds). Section 5.5. Sale of Series 1996 Bonds Approved. The sale of the Series 1996 Bonds to the Water Quality Board, at par, is hereby ratified, confirmed and approved. Section 5.6. Bondholders not Responsible. The Bondholders shall not be responsible for any liabilities incurred by the Issuer in the acquisition or construction of the Project or for the failure of the System to function successfully after completion of the Project. Section 5.7. Notice of Bonds to be Issued. In accordance with the provisions of the Utah Municipal Bond Act, Title 11, Chapter 14, Utah Code Annotated, 1953, as amended, the Issuer has designated the Times Independent as the official newspaper of the Issuer authorized to publish legal notices for the Issuer, and in accordance with Title 11, Chapter 14, Utah Code Annotated, 1953, as amended, the City Recorder shall cause the following "Notice of Bonds to be Issued" to be published one time in the Times Independent, a newspaper having general circulation in the Issuer and shall cause a copy of this Bond Resolution to be kept on file in the office of the City Recorder of the Issuer for public examination during regular business hours for at least thirty (30) days from and after the publication thereof. For a period of thirty (30) days after such publication, any person in interest shall have the right to contest the legality of this Bond Resolution or of the Series 1996 Bonds hereby authorized or any provisions made for the security and payment of such Series 1996 Bonds. After such time, no one shall have any cause of action to contest the regularity, formality or legality of this Bond Resolution or the Series 1996 Bonds herein authorized or any provisions made for the security and payment of such Series 1996 Bonds for any cause whatsoever. The "Notice of Bonds to be Issued" is in substantially the following form: 239757.001(P17 24 06/28/96 NOTICE OF BONDS TO BE ISSUED NOTICE IS HEREBY GIVEN pursuant to the provisions of Title 11, Chapter 14, Utah Code Annotated, 1953, as amended, that on July 9, 1996, the City Council of the City of Moab, Grand County, Utah (the "Issuer") adopted a resolution (the "Bond Resolution") in which it authorized and approved the issuance of the Issuer's Sewer Revenue Bonds, Series 1996 in a total principal amount of $1,821,000 (the "Series 1996 Bonds"), to bear no interest (a hardship grant assessment, however, will be charged at the rate of 4.5 % per annum on the unpaid principal balance), to mature in not more than twelve years from its date, and to be sold to the Utah Water Quality Board at a price of par. The Series 1996 Bonds, pursuant to the Bond Resolution is to be issued for the purpose of paying all or a part of the cost of sewer system improvements, consisting of upgrading and expansion of the Issuer's wastewater treatment facility and the construction of a new interceptor sewer and collection lines, and other related improvements to the Issuer's System, and the expenses reasonably incurred in connection with the authorization and issuance of the Series 1996 Bonds. Principal payments on the Series 1996 Bonds shall be made by the Issuer on February 1, 1999 and on each anniversary date thereafter in such amounts as shall be sufficient to fully pay the Series 1996 Bonds within twelve years from its issuance. A copy of the Bond Resolution authorizing the issuance and confirming the sale of the Series 1996 Bonds is on file in the office of the City Recorder of the Issuer in Moab, Utah, where it may be examined during daytime hours from 8:30 a.m. to 5:00 p.m. for a period of at least thirty (30) days from and after date of the publication of this notice. NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the date of the publication of this notice is provided by law in which any person in interest shall have the right to contest the legality of the Bond Resolution or the Series 1996 Bonds of the Issuer authorized thereby, or any provision made for the security and payment of the Series 1996 Bonds, and that after such time, no one shall have any cause of action to contest the regularity, formality or legality thereof for any cause whatsoever. DATED this 9th day of July, 1996. /s/ Sandra Beauregard City Recorder Published in the Times -Independent, July 18th & 25th & August 1st, 8th, 15th, & 22, 1996. 239757.001(PF) 25 06/28/96 o Section 5.8. Additional Certificates. Documents, and Other Papers. The appropriate officials of the Issuer, and each of them, are hereby authorized and directed to execute and deliver for and on behalf of the Issuer any or all additional certificates, documents, and other papers and to perform all other acts they may deem necessary or appropriate in order to implement and carry out the matters authorized in this Bond Resolution and the documents authorized and approved herein. Section 5.9. Severability. If any section, paragraph, clause or provision of this Bond Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Bond Resolution. It is hereby declared by the governing body of the Issuer that it is the intention of the Issuer by the adoption of this Bond Resolution to comply in all respects with the provisions of the Utah Municipal Bond Act, Title 11, Chapter 14, Utah Code Annotated, 1953, as amended. Section 5.10. Resolutions in Conflict. All resolutions or parts thereof in conflict with the provisions of this Bond Resolution are, to the extent of such conflict, hereby repealed. ATTEST: f0a,4-0-a. City Recorder (SEAL) GrIc/RAC 239757.001(PF) 26 06/28/96 C (Other business not pertinent to the above appears in the minutes of the meeting.) Upon motion duly made and carried, the meeting was adjourned. ATTEST: da/1/44._ City Recorder (SEAL) GA gig/2E • Mayor -R20 --Ter'L 239757.001(PF) 27 06/28/96 STATE OF UTAH COUNTY OF GRAND I, Sandra Beauregard, hereby certify that I am the duly qualified and acting City Recorder of the City of Moab, Grant County, Utah. I further certify that the above and foregoing instrument constitutes a true and correct copy of the minutes of a regular meeting of City Council of the City of Moab, including a Bond Resolution adopted at said meeting held on July 9, 1996, as said minutes and Bond Resolution are officially of record in my possession, and that a copy of said Bond Resolution was deposited in my office on July 9, 1996. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of said City of Moab this 9th day of July, 1996. (SEAL) a • City ecord c,fiy,v& 239757.001(PF) 28 06/28/96 EXHIBIT "A" CERTIFICATE OF COMPLIANCE WITH OPEN MEETING LAW I, Sandra Beauregard, the undersigned City Recorder of the City of Moab, Grand County, Utah (the "City") do hereby certify according to the records of the City in my official possession, and upon my own knowledge and belief, that in accordance with the requirements of Section 52-4-6(2), Utah Code Annotated, (1953), as amended, I gave not less than twenty-four (24) hours public notice of the agenda, date, time and place of the July 9, 1996 public meeting held by the City as follows: (a) By causing a Notice, in the form attached hereto as Schedule "1 ", to be posted at the City's principal offices on July 8th , 1996, at least twenty-four (24) hours prior to the convening of the meeting, said Notice having continuously remained so posted and available for public inspection until the completion of the meeting; and (b) By causing a copy of such notice, in the form attached hereto as Schedule " 1 ", to be delivered to the Times Independent at least twenty four (24) hours prior to the convening of the meeting. In addition, the Notice of 1996 Annual Meeting Schedule for the City Council (attached hereto as Schedule "2 ") was given specifying the date, time, and place of the regular meetings of the City Council to be held during the year, by causing said Notice to be posted on July 8th , 19 96 at the principal office of the City and by causing a copy of said Notice to be provided to at least one newspaper of general circulation within the City on July 8th , 19 96 . IN WITNESS WHEREOF, I have hereunto subscribed my official signature this 9th day of July, 1996. (SEAL) fat.)-444- . City Recorde 0/Y1c/ig 239757.001(PF) A-1 06/28/96 Moab City Corporation 115 WEST 200 SOUTH N1OAB. UTAH 84532-2534 0(801) 259-5121 • FAX (801) 259-4135 SCHEDULE "1 " NOTICE OF MEETING City of Moab - Regular Council Meeting Moab City Council Chambers: 115 West 200 Tuesday, July 9, 1996, at 7:00 p.m. ***************************************************************** 7:00 A.M. SECTION 1: SECTION 2: SECTION 3: SECTION a: REGULAR CITY COUNCIL MEETING Call To Order: APPROVAL OF MINUTES 1-1 Approval of June 25th minutes: CITIZENS TO BE HEARD CITY PLANNING PRESENTATIONS SECTION 5: PUBLIC HEARINGS South Pledge To Flag: 7:30 p.m. 5-1 Proposed Ordinance 96-10--Setting the Exempt positions of the City of Moab. 5-2 Annexation request from Todd Campbell Powerhouse Lane; the request is for a designation, proposed Ordinance 96-12. SECTION 6: CONSENT AGENDA SECTION 7: OLD BUSINESS Salary for at 1339 R-2 Zone 7-1 Selection of two members of the Governing Body to serve on the Employee Appeals Board. SECTION 8: NEW BUSINESS 8-1 Request to use Old City Park on Tuesday, July 16th, for a gathering of friends with a Bluegrass Band. Donations will be accepted to defray the cost of the band. This event should run from noon until 9 p.m. 8-2 Bid award --Rotary Park Lower Parking Lot Project. The Community Development Block Grant Funds will pay for this project. 8-3 Transfer of $70,000 from the Milcreek Project Fund to the Community Development Fund as a Temporary Loan; to allow the release of funds to Seekhaven, 239757.001(PF) A-2 wa/96 c� C SECTION 9: SECTION 10: SECTION 11: SECTION 12: SECTION 13: for the Shelter Acquisition. Loan to be repaid with Community Development Block Grant (CDBG) Funds. 8-4 Proposed Ordinance 96-10--Setting the Salary for Exempt Positions of the City of Moab. 8-5 Easements/Land Acquisition for the Wastewater Treatment Plant Project. 8-6 Proposed Resolution 18 -96- -Authorizing the issuance and confirming the sale of $1,821,000 Sewer Revenue Bonds, Series 1996 of the City of Moab, Grand County, Utah. 8-7 City Attorney appointment and discussion of Public Defender appointment. READING OF CORRESPONDENCE ADMINISTRATIVE REPORTS MAYOR AND COUNCIL REPORTS PAY THE BILLS AGAINST THE CITY OF MOAB EXECUTIVE SESSION 13-1 Strategy session with respect to collective bargaining, litigation,..9r purchase of real property. • SECTION 14: ADJOURNMXNT In compliance with the Americans with Disabilities Act, individuals needing special accommodations during this meeting should notify the Recorder's office at 115 West 200 South, Moab, Utah 84532, phone number (801) 259-5121, at least three working days prior to the meeting. 239757.001(PF) A-2 06/2s/96 I C' SCHEDULE "2" NOTICE OF ANNUAL MEETING MOAB C I T Y CORPORATION REGULAR COUNCIL MEETING SCHEDULE 1996 The Moab City Corporation will hold Regular City Council Meetings at 7:00 p.m. on the second and forth Tuesdays of each month. All Regular City Council Meetings will be held in the Moab City Council Chambers at 115 West 200 South, Moab, Utah. Meeting dates will be as follows: January 9th January 23rd February 13th February 27th March 12th March 26th April 9th April 23rd May 14th -May 28th June llth June 25th July 9th July 23rd August 13th August 27th September loth September 24th October 8th . October 22nd November 12th November 26th December loth *December 17th The only exception to the second and fourth Tuesdays: meeting dates is December 17th; due to December 24th being Christmas Eve. Published in the Times -Independent, December 14th & 21st, 1995. DEC 1 3 1235 239757.001(PF) • A-3 06/28/96 EXHIBIT "B-1 " FORM OF STATE BONDS UNITED STATES OF AMERICA STATE OF UTAH COUNTY OF GRAND CITY OF MOAB SEWER REVENUE BOND SERIES 1996 $1,821,000 The City of Moab, Grand County, Utah (the "Issuer"), a political subdivision and body politic of the State of Utah, acknowledges itself indebted and for value received hereby promises to pay, but solely in the manner and from the revenues and sources hereinafter provided, to the registered owner hereof or registered assigns, the principal amount of $1,821,000. The principal of this Bond shall be paid annually in each of the years set forth in the following Repayment Schedule: REPAYMENT SCHEDULE Principal Principal February 1 Maturing February 1 Maturing 1999 $148,000 2004 $185,000 2000 $155,000 2005 $193,000 2001 $162,000 2006 $201,000 2002 $169,000 2007 $211,000 2003 $177,000 2008 $220,000 The Issuer shall also be obligated to pay to the Water Quality Board and any subsequent owner of the Series 1996 Bonds a Hardship Grant Assessment (as herein defined). The Hardship Grant Assessment shall accrue on the outstanding principal balance of this Bond beginning on the date of initial delivery of this Bond and shall be computed in the same manner as interest such that as the outstanding principal balance of this Bond is increased or decreased, the Hardship Grant Assessment shall be computed on the basis of the increased or decreased principal balance from the date of such increase or decrease to the earlier of (i) the next change in principal balance or (ii) the next succeeding payment date. The payment dates for the Hardship Grant Assessment shall be February 1, 1997 and each February 1 thereafter until this Bond is paid in full. 239757.001(PF) B-1-1 07ioai96 "Hardship Grant Assessment" means a special assessment levied by the Water Quality Board against the Issuer in consideration for agreeing to finance the Project through the purchase of this Bond and shall equal 4.5 % per annum of the outstanding principal balance of this Bond. Principal payments, whether at maturity or by redemption and the Hardship Grant Assessment, shall be payable upon surrender of this Bond at the offices of the Paying Agent, or of any successor Paying Agent. Payments of interest shall be made to the Registered Owner thereof and shall be paid by check or draft mailed to the Registered Owner thereof at his address as it appears on the registration books of the Issuer maintained by the Registrar, or at such other address as is furnished to the Registrar in writing by such Registered Owner. As long as the Utah Water Quality Board (the "Water Quality Board") is the registered holder of this Bond, installment payments of principal and payment of the Hardship Grant Assessment shall be made by check or draft mailed to the Water Quality Board as the registered holder at the address shown on the registration books maintained by the Registrar. If any installment payment of Bond principal or the Hardship Grant Assessment is not paid when due and payable, the Issuer shall pay interest on the delinquent installment at the rate of eighteen percent (18 %) per annum from said due date until paid. All payments shall be made in any coin or currency which on the date of payment is legal tender for the payment of debts due the United States of America. All payments shall be applied first to interest, if any, then to unpaid Hardship Grant Assessment and then to principal. This Bond is payable solely from a special fund designated "City of Moab, Grand County, Utah Sewer Revenue Bond, Series 1996 Sinking Fund", into which fund and into a reserve therefor, to the extent necessary to assure prompt payment of this Bond, shall be pledged 100 % of the Net Revenues (as defined in the Bond Resolution herein described) derived and to be derived from the operation of the Issuer's sewer system (the "System"), all as more fully described and provided in the Bond Resolution adopted by the governing body of the Issuer on the 9th day of July, 1996 (the "Bond Resolution"). This Bond is issued pursuant to (i) the Bond Resolution, and (ii) the Utah Municipal Bond Act, Title 11, Chapter 14, Utah Code Annotated, 1953, as amended, for the purpose of financing the cost of sewer system and other related improvements to the Issuer's System, including all equipment and necessary appurtenances thereof. This Bond and the payment of the Hardship Grant Assessment are special limited obligation of the Issuer payable solely from the Net Revenues (as defined in the Bond Resolution) of the System and does not constitute an indebtedness of the Issuer within the meaning of any state constitutional or statutory limitation. In no event shall this Bond or the payment of the Hardship Grant Assessment be deemed or construed to be a general obligation indebtedness of the Issuer or payable from any funds of the Issuer other than the Revenues of the System. 239757.001(M B-1-2 06/28/96 C As provided in the Bond Resolution, bonds, notes and other obligations may be issued from time to time in one or more series in various principal amounts, may mature at different times, may bear interest at different rates and may otherwise vary as provided in the Bond Resolution, and the aggregate principal amount of such bonds, notes and other obligations which may be issued is not limited. This Bond and all other bonds, notes and other obligations issued and to be issued under the Bond Resolution on a parity with this Bond are and will be equally and ratably secured by the pledge and covenants made therein, except as otherwise expressly provided or permitted in or pursuant to the Bond Resolution. The issuance of this Bond shall not, directly, indirectly or contingently, obligate the Issuer or any agency, instrumentality or political subdivision thereof to levy any form of taxation therefor or to make any appropriation for its payment. This Bond is subject to prepayment and redemption at any time, in whole or in part (if in part, in integral multiples of $1,000), at the election of the Issuer in inverse order of the due date of the principal installments hereof and by lot selected by the Issuer if less than all Bonds of a particular due date are to be redeemed, upon notice given as hereinafter set forth, at a redemption price equal to the principal amount to be so prepaid. Notice of redemption shall be mailed by the Issuer, postage prepaid, not less than thirty (30) days prior to the date fixed for prepayment, to the registered owner of this Bond addressed to such owner at its address appearing on the registration books maintained by the Issuer. Subject to the provisions of the Bond Resolution, the Bonds are issuable in fully registered form, without coupons, in denomination equal to the principal amount of the bonds or, upon exchange, in the denomination of $1,000 and any integral multiple thereof. The Issuer covenants and agrees that it will fix rates for sewer service sufficient to pay when due this Bond and the Hardship Grant Assessment, and the principal and interest on all bonds issued on a priority to or parity with this Bond, if any, as the same fall due, provided such rates must be reasonable rates for the type, kind and character of the service rendered, and will collect and account for the Revenues (as defined in the Bond Resolution) to be received for such service, and will set aside one hundred percent (100 %) of the Net Revenues of the System (as defined in the Bond Resolution) to pay this Bond and the Hardship Grant Assessment according to the payment terms hereinabove set forth and the principal and interest on all bonds issued on a parity with this Bond, if any. To the extent and in the respects permitted by the Bond Resolution, the Bond Resolution may be modified or amended by action on behalf of the Issuer taken in the manner and subject to the conditions and exceptions prescribed in the Bond Resolution. The holder or owner of this Bond shall have no right to enforce the provisions of the 239757.001(PF) B-1-3 ' 06/28/96 O Bond Resolution or to institute action to enforce the pledge or covenants made therein or to take any action with respect to an event of default under the Bond Resolution or to institute, appear in, or defend any suit or other proceeding with respect thereto, except as provided in the Bond Resolution. This Bond shall be registered in the name of the . initial purchaser and any subsequent purchasers in an appropriate book in the office of the City Recorder of the Issuer, who shall be the Registrar. This Bond is transferable only by notation upon said book by the registered owner hereof in person or by his attorney duly authorized in writing, by the surrender of this Bond, together with a written instrument of transfer satisfactory to the Issuer, duly executed by the registered owner or his attorney duly authorized in writing; thereupon, this Bond shall be delivered to and registered in the name of the transferee. It is hereby declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Bond have existed, have happened and have been performed in regular and due time, form and manner as required by law, that the amount of this Bond does not exceed any limitation prescribed by the Constitution or statutes of the State of Utah, that the Net Revenues (as defined in the Bond Resolution) to be derived from the operation of the System have been pledged and that an amount therefrom will be set aside into a special fund by the Issuer sufficient for the prompt payment of this Bond and all bonds issued on a parity with this Bond, if any, and that said Net Revenues are not pledged, hypothecated or anticipated in any way other than by the issue of this Bond and all bonds issued on a parity with this Bond, if any. IN TESTIMONY WHEREOF, the Issuer has caused this Bond to be signed by its Mayor and countersigned by its City Recorder under the corporate seal of said Issuer this day of , 19 Countersigned: /s/ (Do Not Sign) (SEAL) City Recorder /s/ (Do Not Sign) Mayor 239757.001(PF) B-1-4 06/28/96 o c REGISTRATION CERTIFICATE (No writing to be placed herein except by the Bond Registrar) Date of Signature of Registration Name of Registered Owner Bond Registrar Utah Water Quality Board 239757.001(PF) B-1-5 06/28/96 INTEREST RATE Registered Owner: Principal Amount: EXHIBIT "B-2" FORM OF EXCHANGE BOND UNITED STATES OF AMERICA STATE OF UTAH COUNTY OF GRAND CITY OF MOAB SEWER REVENUE BONDS, SERIES 1996 MATURITY DATE ISSUE DATE Dollars City of Moab, Grand County, Utah (the "Issuer"), a political subdivision and body politic of the State of Utah, acknowledges itself indebted and for value received hereby promises to pay, but solely in the manner and from the revenues and sources hereinafter provided, to the Registered Owner identified above, or registered assigns, on the Maturity Date specified above, upon presentation and surrender thereof, the Principal Amount identified above. The Hardship Grant Assessment shall be payable by check or draft mailed by , Salt Lake City, Utah 84 (the "Paying Agent") to the Registered Owner hereof beginning and on each thereafter until this Bond is paid in full. Principal and redemption price of this Bond shall be payable upon presentation of this Bond to the Paying Agent, or its successor as such paying agent, for payment at maturity. The Issuer shall also be obligated to pay to the owner of this Bond a Hardship Grant Assessment (as herein defined). The Hardship Grant Assessment shall accrue on the outstanding principal balance of this Bond beginning on the date of initial delivery of the Series 1996 Bonds and shall be computed in the same manner as interest. The payment dates for the Hardship Grant Assessment shall be and each thereafter until this Bond is paid in full. "Hardship Grant Assessment" means a special assessment levied by the Water Quality Board against the Issuer in consideration for agreeing to finance the Project 239757.001(PF) B-2-1 06/28/96 through the purchase of this Bond and shall equal 4.5 % per annum of the outstanding principal balance of this Bond. If this Bond or the Hardship Grant Assessment is not paid when due and payable, the Issuer shall pay interest on the unpaid amount at the rate of eighteen percent (18%) per annum from the Maturity Date until paid in full. This Bond is one of an authorized issue of bonds of like date, term and effect except as to maturity, in the aggregate principal amount of Dollars ($ ), issued in exchange for the conversion of the Issuer's Sewer Revenue Bond, Series 1996 dated 19 , in the total principal sum of $1,812,000,authorized by a Bond Resolution of the Issuer duly adopted on July 9, 1996 (the "Bond Resolution"). This Bond and the issue of Bonds of which it is a part is issued pursuant to (i) the Bond Resolution and (ii) the Utah Municipal Bond Act, Title 11, Chapter 14, Utah Code Annotated, 1953, as amended, for the purpose of financing the cost of constructing sewer system improvements, together with related additions and improvements. This Bond and the Hardship Grant Assessment is/are a special limited obligation of the Issuer payable solely from the Net Revenues (as defined in the Bond Resolution) of the System and does not constitute an indebtedness of the Issuer within the meaning of any state constitutional or statutory limitation. In no event shall this Bond or the Hardship Grant Assessment be deemed or construed to be a general obligation indebtedness of the Issuer or payable from any funds of the Issuer other than the Revenues of the System. As provided in the Bond Resolution, bonds, notes and other obligations may be issued from time to time in one or more series in various principal amounts, may mature at different times, may bear interest at different rates and may otherwise vary as provided in the Bond Resolution, and the aggregate principal amount of such bonds, notes and other obligations which may be issued is not limited. This Bond and all other 'bonds, notes and other obligations issued and to be issued under the Bond Resolution on a parity with this Bond are and will be equally and ratably secured by the pledge and covenants made therein, except as otherwise expressly provided or permitted in or pursuant to the Bond Resolution. The issuance of this Bond shall not, directly, indirectly or contingently, obligate the Issuer or any agency, instrumentality or political subdivision thereof to levy any form of taxation therefor or to make any appropriation for its payment. The Bonds are subject to redemption prior to maturity at any time, in whole or in part (if in part, in integral multiples of $1,000), at the election of the Issuer in inverse order of maturity and by lot within each maturity if less than the full amount is redeemed, upon not less than thirty (30) days' nor more than forty-five (45) days' prior notice, at a redemption price equal to 100% of the principal amount of each Bond to be redeemed. Notice of redemption shall be mailed by the Issuer, postage prepaid, to the registered owners of said Bonds addressed to such owners at their address appearing on the registration books maintained by the Issuer. 239757.001(PF) B-2-2 06/28/96 c Subject to the provisions of the Bond Resolution, the Series 1996 Bonds (as defined in the Bond Resolution) are issuable in fully registered form, without coupons, in denomination equal to the principal amount of the bonds or, upon exchange, in the denomination of $1,000 or any integral multiple thereof. The Issuer covenants and agrees that it will fix rates for sewer service sufficient to pay this Bond when due, the Hardship Grant Assessment, and principal and interest on all bonds issued on a priority to or parity with this Bond, if any, as the same fall due, provided such rates must be reasonable rates for the type, kind and character of the service rendered, and will collect and account for the Revenues (as defined in the Bond Resolution) to be received for such service, and will set aside one hundred percent (100%) of the Net Revenues of the System (as defined in the Bond Resolution) to pay this Bond according to the payment terms hereinabove set forth and the principal and interest on all bonds issued on a parity with this Bond, if any. To the extent and in the respects permitted by the Bond Resolution, the Bond Resolution may be modified or amended by action on behalf of the Issuer taken in the manner and subject to the conditions and exceptions prescribed in the Bond Resolution. The Registered Owner of this Bond shall have no right to enforce the provisions of the Bond Resolution or to institute action to enforce the pledge or covenants made therein or to take any action with respect to an event of default under the Bond Resolution or to institute, appear in, or defend any suit or other proceeding with respect thereto, except as provided in the Bond Resolution. This Bond is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the office of the City Recorder (the "Registrar") in Moab, Utah, but only in the manner, subject to the limitations and upon payment of the charges provided in the Bond Resolution and upon surrender and cancellation of this Bond. Upon such transfer a new registered Bond or Bonds of the same series and the same maturity and of authorized denomination or denominations for the same aggregate principal amount will be issued to the transferee in exchange therefor. It is hereby certified, recited and declared that all conditions, acts and things essential to the validity of this Bond and the issue of which it forms a part do exist, have happened and have been done, and that every requirement of law affecting the issue hereof has been duly complied with; that this Bond and the issue of which it forms a part does not exceed any limitation prescribed by the Constitution and laws of the State of Utah; that one hundred percent (100 %) of the Net Revenues to be derived from the operation of the System, including any future improvements, additions and extensions thereto, have been pledged and will be set aside into said special fund by the Issuer to be used for the payment of this Bond and the issue of which it forms a part, the Hardship Grant Assessment, and all bonds issued on a parity with this Bond, if any, and that said Net Revenues of the System are not pledged, hypothecated or anticipated in any way other than by the issue of Series 1996 Bonds of which this Bond is one and all bonds issued on a parity with this Bond, if any and the payment of the Hardship Grant Assessment. 239757.001(0F) B-2-3 06/28/96 NOTICE OF BONDS TO BE ISSUED NOTICE IS HEREBY GIVEN pursuant to the pro- visions of Title 11, Chapter 14, Utah Code Annotated, 1953, as amended, that on July 9, 1996, the City Coun- cil of the City of Moab, Grand County, Utah (the "Issuer") • adopted a resolution (the Bond Resolution") in which it authorized and approved the issuance of the. Issuer's =1 Sewer Revenue Bonds, Se- ries 1996 in a total principal amount of $1,821,000 (the "Series 1996 Bonds"), to ` bear no interest (a hardship grant assessment, however, will be charged at the rate of 4.5 % per annum on the un- paid principal balance), to mature in not more than twelve years from its date, .and to be sold to the Utah Water Quality Board at a price of par. E The Series 1996 Bonds, pursuant to the Bond Reso- lution into be issued for the 1 purpose of paying all or a part of the cost of sewer sys- tem improvements, consist- ing of upgrading and expan- sion of the Issuer's wastewa- ter treatment facility and the construction of a new inter- ceptor sewer and collection lines, and other related im- provements to the Issuer's System, and the expenses , reasonably incurred _ in con- nection with the authorization and issuance of the Series 1996 Bonds. Principal payments on the Series -1996 Bonds shall be made by the Issuer on Feb- ruary 1, 1999 and on each anniversary date thereafter in such amounts as shall be sufficient to fully pay the Se- ries 1996 Bonds within tWAlvA vsars from its issi1. b PY3 2 9 1993 Proof of Publication STATE OF UTAH, County of Grand, 1 ss. 1 Samuel J. Taylor or Adrien F. Taylor, being first duly sworn according to law, deposes and says: That he/she is the co -publisher of The Times -Independent, a weekly newspaper of general circulation, published every Thursday at Moab, Grand County, State of Utah; that the notice Notice of Bonds to be Issued hereto attached, and which is made a part of this Affida- vit of Publication, was published in said newspaper for a period of 6 consecutive issues, the first publication date having been made July 18, 1996 ;and the last on Aug. 22, 1996 ;and the said notice was published in each and every copy of said newspaper during the period and time of publication, and that it was published in the news- paper proper and not in a supplement thereof. Co -Pub fisher Subscribed and sworn before me this e_ t51.._ Notary Public Residing at Moab, Utah My Commission Expires 001.STIN E. lij • �.„ y 30P0 SPAN1 4.4 VALLEY DR f .44 MOM. U7 84532 EXP. 7.Z.St