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RESOLUTION NO. 2017- 03 <br /> A RESOLUTION OF LEFT HAND WATER DISTRICT, ACTING BY <br /> AND THROUGH ITS WATER ACTIVITY ENTERPRISE,APPROVING A <br /> LOAN FROM THE COLORADO WATER CONSERVATION BOARD TO <br /> FINANCE WATER CAPITAL IMPROVEMENTS; AUTHORIZING <br /> EXECUTION OF A LOAN CONTRACT AND A PROMISSORY NOTE TO <br /> DOCUMENT THE LOAN; AND PROVIDING FOR PAYMENT OF THE <br /> NOTE. <br /> WHEREAS, Left Hand Water District, in Boulder, Broomfield and Weld Counties, <br /> Colorado, is a quasi-municipal corporation, duly organized in 1990 as a water district and <br /> currently operating under the constitution and laws of the State of Colorado (certain capitalized <br /> terms used in the preamble of this Resolution are defined in Section 1 hereof); and <br /> WHEREAS, the District is acting hereunder by and through its Water Activity Enterprise, <br /> which has been duly and regularly established pursuant to Enabling Laws and by resolution of <br /> the District, which enterprise has been and continues to be operated as a "water activity <br /> enterprise" within the meaning of Section 37-45.1-102(4), C.R.S., and constitutes a government <br /> owned business which is authorized to issue its own revenue bonds and which shall not receive <br /> 10% or more of annual revenue in grants from all Colorado state and local governments <br /> combined; and <br /> WHEREAS, to finance a portion of the estimated costs of water capital improvements <br /> generally consisting of the participation by the District in the Southern Water Supply Project II <br /> located in Boulder and Larimer Counties,the Board has determined to enter into a Loan Contract <br /> with the Colorado Water Conservation Board, an agency of the State, pursuant to which CWCB <br /> is to make a loan to the District a principal amount not to exceed $10,000,000; and <br /> WHEREAS, the District's repayment obligation under the Loan Contract will be <br /> evidenced by a promissory note to be issued by the District to CWCB, which Note shall <br /> constitute a special revenue obligation payable from Net Revenues of the System (which <br /> generally includes all water operations of the District) and, after consideration, the Board has <br /> determined that the execution of the Loan Contract and the issuance of the Note to CWCB is to <br /> the best advantage of the District; and <br /> WHEREAS, as of the date of adoption of this Resolution, the District has outstanding <br /> multi-year obligations which are secured by the Net Revenues and which generally consist of(i) <br /> a 1999 loan from CWRPDA Drinking Water Revolving Fund, represented by a Loan Agreement <br /> dated as of May 1, 1999 and related Governmental Agency Bond (the final scheduled payment <br /> on which is in May of 2019) and (ii) a 2014 loan from CWRPDA Drinking Water Revolving <br /> Fund, represented by a Loan Agreement dated as of May 1, 2014 and related Governmental <br /> Agency Bond(the final scheduled payment on which is in August of 2034); and <br /> WHEREAS, the Note is exempt from registration under the "Colorado Municipal Bond <br /> Supervision Act" by virtue of the exemption provided in Section 11-59-110(1), C.R.S., and <br /> 4828-5273-6853.1 <br />