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: