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<br />DOLORES WATER CONSERVANCY DISTRICT WATER ACTIVITY ENTERPRISE
<br />RESOLUTION No. 02-02-E
<br />RESOLUTION APPROVING THE LOAN CONTRACT FOR A LOAN OF UP TO $7,260,000
<br />FROM THE COLOR.ADO WATER CONSERVATION BOARD TO THE DOLORES WATER
<br />CONSERVANCY DISTRICT, ACTING BY AND THROUGH THE DOLORES WATER
<br />CONSERVANCY DISTRICT WATER ACTIVITY ENTERPRISE, FOR THE IRRIGATION
<br />COMPONENT OF THE DISTRICT'S WETPACK PROJECT, WHICH INCLUDES
<br />CONSTRUCTION OF WATER SUPPLY INFR.ASTRUCTURE AND THE ACQUISITION OF
<br />MONTEZUMA VALLEY IRRIGATION COMPANY "B" SHARES
<br />WHEREAS, the Dolores Water Conservancy District (the "District") is a water
<br />conservancy district established pursuant to and governed by Colorado statute, C.R.S. § 37-45.1-
<br />101, et seg:,, to conserve and develop the water resources of the Dolores River and its tributaries
<br />in Southwest Colorado; and
<br />WHEREAS, the Dolores Water ~ t~ istrict Water Activity Enterprise (the
<br />"Enterprise") is an enterprise within e meani . 37-45.1-101 et se~c ., and Article X,
<br />Section 20 of the Colorado Consti ', b by Resolution No. 93-02 of the
<br />District, dated December 14, 199
<br />WHEREAS, the District, acting by and through the Enterprise, applied to the Colorado
<br />Water Conservation Board (the "CWCB") for a loan to finance the costs of the irrigation
<br />component of the WETPACK Project, including the construction of facilities and the purchase of
<br />Montezuma Valley Irrigation Company "B" shares ("the "Project"), at a cost of approximately
<br />$7,260,000.
<br />WHEREAS, at its November 20 and 21, 2000, meeting, the CWCB approved a loan to the
<br />District, acting by and through the Enterprise, in an amount not to exceed $7,260,000 or ninety
<br />percent (90%) of the cost of the Project, whichever is less, at an interest rate of 3.5% per annum
<br />for a term of up to thirty (30) years to finance Project irrigation facilities and interest in water
<br />(the "Loan"); and
<br />WHEREAS, the District, acting by and through the Enterprise, now desires to borrow
<br />$5,461,200 ("Initial Loan Amount") for the Project upon terms and conditions mutually agreed
<br />upon with the CWCB and the District, acting by and through the Enterprise, as set forth in the
<br />Loan Contract and its appendices ("Loan Contract") attached hereto as Exhibit "A".
<br />NOW, THEREFORE, the Board of Directors of the Enterprise ("Board") resolves as
<br />follows:
<br />1. The District, acting by and through the Enterprise, shall have the Project completed in
<br />accordance with a"Feasibility Study" prepared by the consulting engineer of the District and the
<br />Enterprise, Harris Water Engineering, Inc., on October 7, 2000. The CWCB has reviewed and
<br />approved the Feasibility Study which is on file in the office of the CWCB.
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