CT2019-2792 Contract

• Contract/PO #: CT2019-2792
• Contractor Name: Arabian Acres Metropolitan District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

RESOLUTION
A RESOLUTION APPROVING A LOAN FROM THE COLORADO WATER
CONSERVATION BOARD; AUTHORIZING THE FORM AND
EXECUTION OF THE LOAN AGREEMENT; AUTHORIZING THE
EXECUTION AND DELIVERY OF DOCUMENTS RELATED THERETO;
AND PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH.
'WHEREAS, the Arabian Acres Metropolitan District (the "District"), in the County of
Teller and State of Colorado,is duly organized and existing under the Constitution and the laws
of the State of Colorado; and,
WHEREAS, the District has previously determined that its water system constitutes an
enterprise under Article X, Section 20 of the Colorado Constitution ("TABOR"); and
WHEREAS, the members of the Board of Directors of the District (the "Board") have
been duly elected, chosen and qualified; and
WHEREAS, the Board has heretofore determined that the interest of the District and
the public interest and necessity require the expenditure of funds for the installation of
automatic meters, known as the Automatic Meter Implementation Project(the"Project"); and
WHEREAS, the Board has determined that in order to finance costs for the Project, it
is necessary and advisable and in the best interests of the District to enter into a loan agreement
(the "Loan Agreement") with the Colorado Water Conservation Board (the "CWCB"), a body
corporate and political subdivision of the State of Colorado, pursuant to which CWCB shall
loan the District an amount of not to exceed $404,000, including the origination fee (the
"Loan") for such purposes; and
WHEREAS, the District's repayment obligations under the Loan Agreement shall be
evidenced by a promissory note (the "Note")to be issued by the District; and
WHEREAS,at the District's repayment obligations will be in accordance with the Note
which provides for repayment over am of ten(10)years at a rate of 1.85%per annum; and
WHEREAS, the Note and the Loan Agreement (collectively, the "Financing
Documents")pursuant to TABOR may be approved by the Board without an election; and
WHEREAS, the Financing Documents shall be revenue obligations of the District,
payable from the pledged revenues (as defined in the Financing Documents).
WHEREAS, forms of the Financing Documents have been filed with the Secretary of
the District (the "Secretary"); and