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<br />DOLORES WATER CONSERVANCY DISTRICT
<br />WATER ACTIVITY ENTERPRISE
<br />RESOLUTION NO: 04-08-E
<br />
<br />RESOLUTION REQUESTING LOAN OF $3,323,180 FROM THE COLORADO
<br />WATER CONSERVATION BOARD TO COMPLETE DEVELOPMENT OF
<br />ADDmONAL WETPACKLANDS.
<br />
<br />RECITALS
<br />
<br />A. WHEREAS, the Dolores Water Conservancy District (the "District"), located in
<br />Dolores and Montezuma Counties, is a water conservancy district established pursuant to
<br />and governed by Colorado statute, C.R.S. ~ 37-45-101, et sea., to conserve and develop
<br />the water resources of the Dolores River and its tributaries in Southwest Colorado; and
<br />
<br />B. WHEREAS, the Dolores Water Conservancy District Water Activity Enterprise
<br />(the ''Enterprise'') is an enterprise within the meaning of ~ 37-45.1-101 et ~, C.R.S.
<br />(1998) and Article X, Section 20 of the Colorado Constitution" and was established by
<br />Resolution No. 93-02 of the District, dated December 14, 1993; and
<br />
<br />C. WHEREAS, the Water for Everyone Tomorrow Package ("WETPACK") is a.n
<br />initiative of the District by and through the Enterprise ("DistrictlEnterprise") to develop
<br />additional water supplies and delivery facilities to expand the benefits of the Dolores
<br />Project to land to be newly irrigated;
<br />
<br />D. WHEREAS, to pay in part for WETP ACK, the DistrictlEnterprise executed loa.n
<br />contract #C150058 ("Loan Contract One"), in the amount of $5,461,200 ("Loa.n
<br />Amount"), with interest of 3.5% for 30 years, with the Colorado Water Conservation
<br />Board ("CWCB") to help pay for ninety percent (90%) of the costs for WETP ACK,
<br />including $2,052,900 (purchase cost of $2,281,000) for 1,500 Class B shares of
<br />Montezuma Valley Irrigation Company ("MVIC") and $477,000 for Sandstone We:st
<br />(construction cost of $530,000);
<br />
<br />E. WHEREAS, the DistrictlEnterprise established an annuity ("Annuity") of
<br />$3,692,614.50 with MBIA, Inc., pursuant to an agreement among MBIA, Inc., the
<br />CWCB and the DistrictlEnterprise dated December 5, 2002, that provides $296,333
<br />annually, beginning on December 1, 2008, to pay debt service on behalf of the
<br />DistrictlEnterprise to the CWCB under the Loan Contract One;
<br />
<br />F. WHEREAS, the Annuity was funded by a portion of the approximately $4 million
<br />payment to the District from the Bureau of Reclamation ("Reclamation") for
<br />Reclamation's purchase of 3,900 acre-feet (AF) of Dolores Project water, as part of
<br />Reclamation's final settlement with the District of all Dolores Project completion issues:;
<br />
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