If a municipality or county issues bonds to finance the cost of a privatization project and the bonds mature more than 10 years after the privatization project begins operation, the political subdivision contracting with a private owner/operator for the services of the privatization project shall assure that the minimum level of services under contract, payment for the services, and the supply of drinking water, water, or wastewater required in connection with the provision of those services will be sufficient to generate enough income, after payment of operating expenses, to fund reserves for repair and replacement, and to discharge any other obligation of the political subdivision to the private owner/operator under any agreement, and together with all other sources of revenue pledged for payment of the bonds, to pay all principal and interest on the bonds during the term of the bonded indebtedness. The assurance may take the form of:
Terms Used In Utah Code 73-10d-6
Agreement: means a short-term agreement or a long-term agreement. See Utah Code 73-10d-3
Contract: A legal written agreement that becomes binding when signed.
Cost: means , with respect to any privatization project or facility related thereto, without limitation:
(a)
all costs of designing, planning, acquiring, constructing, reconstructing, modifying, improving, maintaining, equipping, extending, furnishing, and placing in service any privatization project, including architectural, planning, engineering, legal, and fiscal advisors' fees or costs, and any costs incident to the acquisition of any necessary property, easement, or right-of-way;
(b)
any costs incurred for preliminary planning to determine the economic or engineering feasibility of a proposed privatization project, including, without limitation, costs of economic investigations and studies, surveys, preparation of designs, plans, working drawings, specifications, and inspection and supervision of the construction of any facility;
(c)
all costs incident to the purchase, installation, or financing of equipment, machinery, and other personal property required by a privatization project;
(d)
all costs incident to the authorization and issuance of bonds, including accountants' fees, attorneys' fees, financial advisors' fees, underwriting fees, including bond discount, and other professional services and printing costs;
(e)
all costs incident to the establishment and funding of appropriate reserve funds; and
(f)
interest estimated to accrue on any bonds issued to finance a privatization project for a reasonable period of time prior to construction, during construction, and for a reasonable period of time after construction. See Utah Code 73-10d-3
Municipality: means any incorporated city or town in the state, including cities or towns operating under home rule charters. See Utah Code 73-10d-3
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Political subdivision: means the state or any municipality, county improvement district, water conservancy district, special service district, drainage district, metropolitan water district, irrigation district, separate legal or administrative entity created under the Interlocal Cooperation Act, or any other entity constituting a political subdivision under the laws of the state. See Utah Code 73-10d-3
Privatization project: means all or part of any drinking water, water, or wastewater project which is owned or operated by a private owner/operator, and provides the related services to political subdivisions. See Utah Code 73-10d-3
Supervising agency: means the Water Development Coordinating Council created in Section 73-10c-3. See Utah Code 73-10d-3
(a)
long-term agreements, at least equal to the period of the bonded indebtedness, with other political subdivisions or other persons; or
(b)
ordinances, franchises, or other forms of regulation requiring sufficient quantities of drinking water, water, or wastewater.
(2)
The supervising agency shall establish rules for periodic reporting by any political subdivision that establishes ordinances, franchises, or other forms of regulation under Subsection (1) and Subsection 73-10d-4(3). The reports shall include information about the services being provided by the privatization project and whether the charges made for those services together with all other sources of revenue pledged for the payment of principal and interest on the bonds, are sufficient to meet the debt service on the bonds.
