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HomeMy Public PortalAboutRES-CC-2017-15CITY OF MOAB, GRAND COUNTY, UTAH RESOLUTION NO. 15-2017 A RESOLUTION AUTHORIZING THE ISSUANCE AND CONFIRMING THE SALE OF WASTEWATER REVENUE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $15,000,000 (THE "BONDS") OF THE CITY OF MOAB, GRAND COUNTY, UTAH (THE "ISSUER") , CALLING A PUBLIC HEARING AND ESTABLISHING A TIME, PLACE AND LOCATION FOR SAID PUBLIC HEARING TO RECEIVE INPUT FROM THE PUBLIC WITH RESPECT TO THE ISSUANCE OF BONDS AND ANY POTENTIAL ECONOMIC IMPACT TO THE PRIVATE SECTOR FROM THE CONSTRUCTION OF THE PROJECT TO BE FUNDED BY THE BONDS; PROVIDING FOR A PLEDGE OF WASTEWATER REVENUES FOR THE PAYMENT OF THE BONDS; FIXING THE MAXIMUM PRINCIPAL AMOUNT OF THE BONDS; THE MAXIMUM NUMBER OF YEARS OVER WHICH THE BONDS MAY MATURE, THE MAXIMUM INTEREST RATE WHICH THE BONDS MAY BEAR, AND THE MAXIMUM DISCOUNT FROM PAR AT WHICH THE BONDS MAY BE SOLD; PROVIDING FOR THE RUNNING OF A CONTEST PERIOD; AND RELATED MATTERS. WHEREAS subject to the limitations set forth herein, the City of Moab, Grand County, State of Utah, desires to issue its Wastewater Revenue Bonds (the "Bonds") for the construction wastewater system improvements, including the construction of a wastewater treatment plant, together with related improvements to the wastewater system (the "Project"), and to acquire necessary land, rights of way and other appurtenances and facilities and to defray all or a portion of the cost thereof from the bonds to be issued hereby, pursuant to this Resolution and a Master Resolution (the "Master Resolution"), in substantially the form presented at the meeting at which this Resolution was adopted and which is attached hereto as Exhibit "B"; and WHEREAS in order to allow for flexibility in setting the financial terms of the Bonds once costs of the Project are finally determined and to optimize debt service costs to the Issuer, the Governing Body of the Issuer desires to grant to the Mayor, in accordance with state law, the authority to approve the interest rates, principal amounts, terms, maturities, redemption features and purchase price at which the Bonds shall be sold and any changes with respect thereto from those terms which were before the Governing Body at the time of adoption of this Resolution, provided that such terms do not exceed the parameters set forth for such terms in Section 1 of this Resolution ( the "Parameters"); and WHEREAS the Issuer, the City of Moab, considers it desirable and necessary and for the benefit of the Issuer to construct the Project to be owned and operated by the Issuer, but does not have on hand money sufficient to pay for the Project; and WHEREAS the revenues to be derived by the Issuer from the operation of the System (as hereinafter defined) have not been pledged or hypothecated in any manner or for any purpose and the Issuer desires to issue its Bonds (as hereinafter defined), payable from such revenues in the manner for which provision is hereinafter made in order to pay all or part of the cost of the Project; and WHEREAS the Utah Local Government Bonding Act, Sections 11-14-101, et seq., Utah Code Annotated, 1953, as amended, provides that, prior to issuing bonds an issuing entity must (I) give notice of its intent to issue such bonds and (ii) hold a public hearing to receive input from the public with respect to the issuance of such bonds and any potential economic impact to the private sector from the construction of the Project to be funded by the Bonds; and WHEREAS the Issuer desires to call a public hearing for this purpose and to publish a notice of such hearing, including a notice of bonds to be issued, in compliance with the Act with respect to the Bonds; and WHEREAS the State of Utah acting through its Water Quality Board has tentatively agreed to purchase Wastewater Revenue Bonds (the "Bonds"), at interest rates of not to exceed 2.5% per annum and on the general and special terms and conditions as set forth herein; NOW, THEREFORE, Be It and It Is Hereby Resolved by the City Council of the City of Moab, Grand County, State of Utah, as follows: Section 1. The Mayor and City Council (the "Governing Body") of the City of Moab, Grand County, Utah (the "Issuer"), hereby finds and determines that it is in the best interests of the residents within the City for the Issuer to issue its Wastewater Revenue Bonds in the aggregate principal amounts of not to exceed $15,000,000 at interest rates not to exceed 2.5% per annum, to mature in not more than thirty-five (35) years from their date or dates (collectively the "Bonds"), pursuant to a resolution to be adopted by the Governing Body authorizing and confirming the issuance and sale of the Bonds. Therefore, the Issuer hereby declares its intention to issue the Bonds according to the provisions of this Section. The Bonds are to be issued for the purpose of paying all or part of the cost of constructing improvements to the City's wastewater system, including construction of a wastewater treatment plant, together with related improvements to the wastewater system, the acquisition of necessary land and easements and the payment of all related costs and services including engineering, the expenses and costs of the issuance of the Bonds and the cost to acquire and provide all appurtenant facilities therefor (the "Project"). The Issuer hereby declares its intention to issue the Bonds according to the provisions of this Section; provided, however, that the Bonds shall only be issued by the Issuer after adoption of a Master Resolution by the Governing Body of the Issuer (the "Master Resolution") setting forth the specific terms of the Bonds within the maximum terms herein provided. The form of Master Resolution attached hereto as Exhibit "B" is in all respects hereby authorized and approved, and the Mayor and Town Clerk of the Issuer are hereby authorized and directed to execute and deliver the same on behalf of the Issuer. The Mayor, within the parameters set forth herein, is hereby authorized to approve the interest rates, principal amounts, terms, maturities, redemption features and purchase price at which the Bonds shall be sold. Section 2. The form, terms and provisions of the Bonds and the provisions for the signatures, authentication, payment, registration, transfer, exchange, redemption and number shall be as set forth in the Master Resolution. The Mayor and City Recorder of the Issuer are hereby authorized and directed to execute and seal the Bonds. Section 3. The appropriate officials of the Issuer are authorized to make any alterations, changes or additions to the Master Resolution and the Bonds or any other document herein authorized and approved which may be necessary to conform the same to the final terms of the Bonds (within the Parameters set by this Resolution), to correct errors or omissions therein, to complete the same, to remove ambiguities therefrom, or to conform the same to other provisions of said instruments, to the provisions of this Resolution or any resolution adopted by the Governing Body or the provisions of the laws of the State of Utah or the United States. Section 4. The Issuer shall hold a public hearing on March 14, 2017, to receive input from the public with respect to the issuance of the Bonds and any potential impact to the private sector from the construction of the Project to be funded by the Bonds, which hearing date shall be not less than fourteen (14) days after notice of the public hearing is (A) first published once a week for two consecutive weeks in the Moab Times -Independent, a newspaper of general circulation in the Issuer and (B) published on the Utah Public Notice Website created under Section 63F-1-701, Utah Code Annotated 1953, as amended. The Issuer directs its officers and staff to publish a Notice of Public Hearing in substantially the following form: NOTICE OF PUBLIC HEARING PUBLIC NOTICE IS HEREBY GIVEN that on February 14, 2017, the Mayor and City Council of the City of Moab (the "Issuer"), adopted a resolution (the "Resolution") declaring its intention to issue its Wastewater Revenue Bonds (the "Bonds") pursuant to the Utah Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended and to call a public hearing to receive input from the public with respect to the issuance of the Bonds. The Issuer shall hold a public hearing on March 14, 2017, at the hour of 7:00 p.m. The location of the public hearing is in the City Office, 217 East Center, Moab, Utah. The purpose of the meeting is to receive input from the public with respect to the issuance of the Bonds and any potential economic impact to the private sector from the construction of the Project to be funded by the Bonds. All members of the public are invited to attend and participate. DATED this 14th day of February, 2017. /s/ Rachel Stenta City Recorder [Publish once each week for two consecutive weeks.] * * * * * * * * Section 5. The Issuer shall also cause a copy of this Resolution (together with all exhibits hereto) to be kept on file in the Issuer's principal offices for public examination during the regular business hours of the Issuer until at least thirty (30) days from and after the date of publication thereof. The Issuer directs its officers and staff to publish a Notice of Bonds to be Issued in substantially the following form: NOTICE OF BONDS TO BE ISSUED PUBLIC NOTICE IS HEREBY GIVEN that on February 14, 2017, the Mayor and City Council of the City of Moab (the "Issuer"), adopted a resolution (the "Resolution") declaring its intention to issue its Wastewater Revenue Bonds (the "Bonds"), pursuant to the Utah Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended. The Issuer intends to issue the Bonds in the principal amount of not to exceed $15,000,000 to bear interest at a rate not to exceed 2.5% per annum, to mature in not to more than 35years from their date or dates, and to be sold at a price not less than 100% of the total principal amount thereof, plus accrued interest to the date of delivery. The Bonds will specify that any installment of principal on the Bonds which shall not be paid when due shall bear interest at the rate of 18% per annum from the due date thereof until paid. The Issuer intends to issue the Bonds for the purpose of (I) financing all or a portion of the cost to construct improvements to the City's wastewater system, including construction of a wastewater treatment plant, together with related improvements to the wastewater system; and (ii ) paying costs of issuing the Bonds. OUTSTANDING BONDS SECURED BY THE SAME REVENUE The Issuer currently has no outstanding bonds secured by the pledge of wastewater system revenues. ESTIMATED TOTAL COST OF THE BONDS The estimated total cost to the Issuer for the proposed Bonds is $16,877,000.00. The estimated cost of interest on the Bonds is $1,877,000.00. NOTICE IS FURTHER GIVEN that a period of 30 days from and after the last date of publication of this Notice is provided by law during which any person in interest shall have the right to contest the legality of the Resolution or the Bonds, or any provision made for the security and payment of the 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. A copy of the Resolution is on file in the office of the City Recorder in Moab, Utah, where it may be examined during regular business hours of the City Recorder from 8:00 a.m. to 5:00 p.m. Monday through Friday. DATED this 14th day of February, 2017. [Publish one time only.] /s/ Rachel Stenta City Recorder * * * * * * * * Section 6. For a period of thirty (30) days from and after publication of the Notice of Bonds to be Issued, any person in interest shall have the right to contest the legality of this Resolution or the Bonds hereby authorized. After such time, no one shall have any cause of action to contest the regularity, formality or legality of this Resolution or the Bonds for any cause whatsoever. Section 7. A11 resolutions or parts thereof in conflict herewith are, to the extent of such conflict, hereby repealed and this Resolution shall be in full force and effect immediately upon its approval and adoption. PASSED AND APPROVED this 14th day of February, 2017 ATTEST AND COUNTERSIGN: City Recker [SEAL] = CITY OF MOAB By Mayor After the conduct of other business not pertinent to the foregoing, it was moved and carried that the Mayor and City Council adjourn. CITY OF MOAB Mayor ATTEST: City [SEAL] STATE OF UTAH ) COUNTY OF GRAND I, RACHEL STENTA, the undersigned, do hereby certify that I am the duly qualified and acting City Recorder of the City of Moab, Grand County, Utah (the "Issuer"). I further certify that the above and foregoing constitutes a true and correct copy of the minutes of a regular public meeting of the Mayor and City Council of the Issuer, held on February 14, 2017, including a Resolution adopted at such meeting, together with exhibits and appendices attached thereto, as said minutes, resolution and appendices are recorded in the regular official book of minutes of the proceedings of the Governing Body kept in the office of the City Recorder that said proceedings were duly had and taken as therein shown, that the meeting thereon shown was in all respects called, held and conducted in accordance with law, and that the persons therein named were present at said meeting, as therein shown. I further certify and I caused a true and correct copy of the above -referenced resolution (including all exhibits and appendices attached thereto) to be filed in the office of the City Recorder for examination by any interested person during the regular business hours of the office of the City Recorder. IN WITNESS WHEREOF, I have hereunto subscribed my official signature and impressed hereon the official seal of the Issuer, this 14th day of February, 2017. [SEAL] Recorder EXHIBIT B [Master Resolution] City F' Moab, Utah February 14, 2017 The Mayor and City Council of the City of Moab, Grand County, Utah met in regular session at its regular meeting place in said Municipality at 7:00 o'clock p.m. on the 14th day of February, 2017, with the following members of the Governing Body present: Dave Sakrison Mayor Kyle Bailey Councilmember Kalen Jones Councilmember Tawny Knuteson-Boyd Councilmember Rani Derasary Councilmember Also present: Rachel Stenta City Recorder Absent: Heila Ershadi Councilmember After the minutes of the preceding meeting had been read and approved, the Town Clerk presented to the Council an affidavit evidencing the giving of not less than twenty- four (24) hours public notice of the agenda, date, time and place of the February 14, 2017, meeting of the Council in compliance with the requirements of Section 52-4-202(1), Utah Code Annotated 1953, as amended, by (1) posting written notice of the meeting at the principal office of the City Council, and (2) providing notice to at least one newspaper of general circulation within the geographic jurisdiction of the City of Moab, Grand County, Utah (the "City") or to a local media correspondent. The affidavit was ordered recorded in the minutes of the meeting and is as follows: STATE OF UTAH ) COUNTY OF GRAND : SS. ) I, RACHEL STENTA, 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- 4-202 , 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 February 14, 2017, public meeting held by the City as follows: (a) causing a Notice of Public Meeting to be posted at the principal office of the City of Moab, 217 East Center Street, Moab, Utah, on February 13, 2017, at least twenty-four (24) hours before the convening of the meeting, in the form attached hereto as Exhibit A; said Notice of Public Meeting having continuously remained so posted and available for public inspection during the regular office hours of the Issuer until the convening of the meeting; and (b) causing a copy of the Notice of Public Meeting in the form attached hereto as Exhibit A to be provided on February 13, 2017, at least twenty-four (24) hours before the convening of the meeting, to the Times -Independent, a newspaper of general circulation within the geographic jurisdiction of Moab, Utah, and to any other local media correspondent, newspaper, radio station or television station which has requested notification of meetings of the Council. IN WITNESS WHEREOF, I have hereunto subscribed my offic-i_al signature this 14th day of February, 2017. (SEAL) City Recorder EXHIBIT A [Attach Notice of Public Meeting Here] NOTICE OF AGENDA OF REGULAR MEETING PLEASE TAKE NOTICE that the Mayor and members of the City Council of the City of Moab, Grand County, State of Utah, will hold a Regular Meeting on Tuesday, the 14th day of February, 2017, at its regular meeting place, the Moab City Offices, 217 East Center Street, Moab, Utah, at the hour of 7:00 o'clock p.m. The Agenda for the meeting consists, in part, of the following: (1) Consideration for and adoption of a Parameter Resolution authorizing the issuance of not to exceed $15,000,000 in Wastewater Revenue Bonds of the City of Moab, Grand County, Utah and calling of a public hearing to receive input with respect to the issuance of such Bonds and any potential impact to the private sector from the construction of the Project; and (2) Any other business that may come before said meeting. DATED this 13th day of February, 2017. City Recorder After the conduct of other business, the following resolution was introduced in written form by the Mayor, was read in full and, pursuant to motion made by Councilmember 'ea; 1.€.4 and seconded by Councilmember 14Ru/um -��d , was adopted by the following vote: Yea: Kyle Bailey Kalen Jones Tawny Knuteson-Boyd Rani Derasary Nay: None The Resolution was thereupon signed by the Mayor, was attested and countersigned by the City Recorder and was ordered recorded in the official records of the Issuer. The Resolution is as follows: