CT2019-366 Contract

• Contract/PO #: CT2019-366
• Contractor Name: Pueblo Conservancy District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

C. Assessment 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 5, 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.
D. Debt Service Reserve Account or Fund. To establish and maintain the debt service reserve
account or fund, the Borrower shall deposit an amount equal to one-tenth of an annual
payment into its debt service reserve account or 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 90 days of withdrawal of the funds. The debt service
reserve account or fund requirement is in effect until the loan is paid in full.
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 increase the indebtedness on the 2017 bond up to $5 M without prior
written approval of CWCB. The Borrower may issue parity debt other than as stated herein
only with the prior written approval of 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;
iii. The Borrower acknowledges and understands that any request for approval of the
issuance of additional debt must be reviewed and approved by the CWCB 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 promptly submit, to CWCB, a copy of the annual audit report of an audit
performed on Borrower's records that relates to this Contract or the Project.
G. Pledged Revenues During Loan Repayment. The Borrower shall not sell, convey, assign,
grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Pledged Revenues,
so long as any of the principal, accrued interest, and late charges, if any, on this loan remain
unpaid, without the prior written concurrence of the CWCB.
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Contract Number:CT2019-366