C150337 Contract

• Contract/PO #: CT2015-060
• Contract/PO #: C150337
• Contractor Name: Well Augmentation System of the Central Colorado Water Conservancy District
• Contract Type: Loan
• County: Weld
• County: Adams
• County: Morgan
• Loan Projects - Doc Type: Contract Documents

c. Rate Covenant. Pursuant to its statutory authority and as permitted by law, the
BORROWER shall take all necessary actions consistent therewith during the term of
this CONTRACT to establish, levy and collect rates, charges and fees as described
in APPENDIX 3, in amounts sufficient to pay this loan as required by the terms of
this CONTRACT and the PROMISSORY NOTE, to cover all expenditures for operation
and maintenance and emergency repair services, and to maintain adequate debt
service reserves, including obtaining voter approval, if necessary, of increases in
the BORROWER'S rate schedule or taxes, if applicable.
d. Debt Service Reserve Account. To establish and maintain the debt service
reserve account, the BORROWER shall deposit an amount equal to one -tenth of an
annual payment into its debt service reserve fund on the due date of its first annual
loan payment and annually thereafter for the first ten years of repayment of this
loan. In the event that the BORROWER applies funds from this account to
repayment of the loan, the BORROWER shall replenish the account within ninety
(90) days of withdrawal of the funds.
e. Additional Debts or Bonds. The BORROWER shall not issue any indebtedness
payable from the pledged revenues and having a lien thereon which is superior to
the lien of this loan. The BORROWER may issue parity debt only with the prior
written approval of the CWCB, provided that:
i. The BORROWER is currently and at the time of the issuance of the parity debt
in substantial compliance with all of the obligations of this CONTRACT,
including, but not limited to, being current on the annual payments due under
this CONTRACT and in the accumulation of all amounts then required to be
accumulated in the BORROWER's debt service reserve fund;
ii. The BORROWER provides to the CWCB a Parity Certificate from an
independent certified public accountant certifying that, based on an analysis of
the BORROWER'S revenues, for 12 consecutive months out of the 18 months
immediately preceding the date of issuance of such parity debt, the
BORROWER's revenues are sufficient to pay its annual operating and
maintenance expenses, annual debt service on all outstanding indebtedness
having a lien on the pledged revenues, including this loan, the annual debt
service on the proposed indebtedness to be issued, and all required deposits
to any reserve funds required by this CONTRACT or by the lender(s) of any
indebtedness having a lien on the pledged revenues. The analysis of
revenues shall be based on the BORROWER's current rate structure or the rate
structure most recently adopted. No more than 10% of total revenues may
originate from tap and /or connection fees.
The BORROWER acknowledges and understands that any request for approval of
the issuance of additional debt must be reviewed and approved by the CWCB
Director prior to the issuance of any additional debt.
f. Annual Statement of Debt Coverage. Each year during the term of this
CONTRACT, the BORROWER shall submit to the CWCB an annual audit report and a
certificate of debt service coverage from a Certified Public Accountant.
Loan Contract No. C150337
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