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
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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:
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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
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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.
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(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.
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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.
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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:
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(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.
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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.
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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.
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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
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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
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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
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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)
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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)
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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
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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)
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(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
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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
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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)
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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)
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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)
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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
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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)
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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)
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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
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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