C150324 Contract - Laserfiche WebLink

Home Browse Search

Resolution No. 2012 -1 A RESOLUTION OF THE TRI- COUNTY WATER CONSERVANCY DISTRICT, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE, APPROVING A LOAN FROM THE COLORADO WATER CONSERVATION BOARD FOR THE PURPOSE OF FINANCING THE CONSTRUCTION OF THE TRI- COUNTY WATER HYDROPOWER PROJECT; AUTHORIZING THE FORM AND EXECUTION OF A LOAN CONTRACT AND A PROMISSORY NOTE EVIDENCING THE LOAN; PROVIDING FOR REPAYMENT OF THE PROMISSORY NOTE FROM CERTAIN REVENUES OF THE WATER ACTIVITY ENTERPRISE; AND PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH. WHEREAS, the Tri- County Water Conservancy District (the "District") has heretofore been duly organized pursuant to the provisions of Title 37, Article 45, Colorado Revised Statutes, as amended (the "Water Conservancy Act ") (unless otherwise indicated, capitalized terms used in this preamble shall have the meanings set forth in Section 1 of this Resolution); and WHEREAS, the District is the owner and operator of a water system which supplies water for municipal, domestic, commercial and other beneficial uses (the "System "); and WHEREAS, the District has, and continues to, maintain the System as a "water activity enterprise" for the purpose of pursuing or continuing water activities or facility activities, including the construction, operation, repair and replacement of water facilities, within the meaning of the Water Activity Enterprise Act; and WHEREAS, in calendar year 2011 the System was, and in calendar year 2012 the System continues to be operated as, a government owned business authorized to issue its own revenue bonds and receiving under 10% of annual revenue in grants from all State and local governments combined, and the Board of Directors (the "Board ") of the District hereby determines and reaffirms that the System is an enterprise within the meaning of Article X, Section 20 of the Colorado Constitution; and WHEREAS, the Board has heretofore determined and does hereby declares that it is necessary to construct the Tri- County Water Hydropower Project (as more specifically defined herein, the "Project "), currently estimated to cost approximately $18,172,000, for the benefit of the District, the costs of which are to be funded from legally available District moneys and one or more loans to the District; and WHEREAS, after extended discussions and consultation, the Board has determined and hereby declares that it is in the best interests of the District and its residents and ratepayers that a portion of the Project should be financed by the execution and delivery of (a) a Loan Contract dated as of April 11, 2012 (including the Security Agreement, form of Promissory Note and Project Summary appended thereto, the "Loan Contract ") between the District and the Colorado Water Conservation Board, an agency of the State (the "CWCB ") in an amount up to $9,090,000 at an interest rate of 2.00% per annum for a repayment term of 30 years and (b) a Promissory Appendix 3 to Loan Contract C150324 4814- 5244 - 3407.2