CT2016-2515 Contract

• Contract/PO #: CT2016-2515
• Contractor Name: Lookout Mountain Water District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

BORROWER: LOOKOUT MOUNTAIN WATER AGENCY NAME: COLORADO WATER
DISTRICT ACTING BY AND THROUGH ITS CONSERVATION BOARD
WATER ACTIVITY ENTERPRISE CONTRACT TYPE: LOAN/PUBLIC
REQUESTED LOAN AMOUNT: $3,069,000 CWCB CMS:85565/CORE: CT2016-2515
LOAN ORIGINATION FEE: $30,690
TOTAL LOAN AMOUNT: $3,099,690
LOAN CONTRACT
This contract ("CONTRACT" or"LOAN CONTRACT")) is made between the State of Colorado for the
use and benefit of The Department of Natural Resources, Colorado Water Conservation Board
("CWCB" or "State"), and Lookout Mountain Water District ("BORROWER"), a Colorado Title 32
Special District, acting by and through its Water Activity Enterprise, ("BORROWER"or"DISTRICT").
FACTUAL RECITALS
1. CWCB authority exists in the law, and funds have been budgeted, appropriated and otherwise
made available and a sufficient unencumbered balance thereof remains available for
encumbering and subsequent payment of this CONTRACT;and
2. Required approval, clearance, and coordination have been accomplished from and with
appropriate agencies; and
3. On November 18, 2015 CWCB ("Board") approved a loan request from the BORROWER for the
Upper Beaver Brook Dam Spillway ("PROJECT")to increase storage by improving the existing
rock-cut spillway. The total estimated project cost is $3,410,000. The total loan amount of
$3,099,690 which includes a one percent (1%) loan origination fee of $30,690 is payable
over 30 years at an interest rate of 3.25%; and
4. The PROJECT SUMMARY, attached as APPENDIX 1 and incorporated herein, contains
BORROWER Information (Section 1), the PROJECT Description (Section 2), CWCB's authority
for making this loan (Section 3), and CWCB Approval or Legislative Authorization (Section 4),
identifying the amount of the loan and the terms of repayment. The PROJECT SUMMARY also
contains sections on BORROWER'S debt, collateral, procedures and eligible expenses.
5. The CWCB now desires, by this CONTRACT, to loan money to the BORROWER for this PROJECT
upon mutually agreeable terms and conditions.
THEREFORE, in consideration of the mutual and dependent covenants contained herein, the
parties agree as follows:
A. LOAN PROVISIONS
1. Loan Origination Fee. The amount of the loan (LOAN AMOUNT) shall include (1) the
amount of the funds loaned by the CWCB to the BORROWER for the PROJECT and (2) a
loan origination fee of one percent (1%) of the PROJECT amount. In the event that the
BORROWER does not use the full LOAN AMOUNT authorized, the parties shall amend this
CONTRACT or exercise an OPTION LETTER (as outlined in section A.3b. and attached as
APPENDIX 2) to revise the LOAN AMOUNT including adjustment of the loan origination fee
to reflect 1% of the actual LOAN AMOUNT disbursed to the BORROWER.
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