C153701 Contract - Laserfiche WebLink

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r"- . acting by and through the Southern Water Supply Project Water Activity Enterprise ("1998 Allotment Contract"). E. Pursuant to the ORIGINAL CONTRACT, the BORROWER pledged revenues from water rates, fees and other charges levied and collected by the BORROWER ("water system revenues") to repay this loan, with the lien created by said pledge of revenues on a parity with the lien of the Colorado Water Resources and Power Development Authority, evidenced by the BORROwER'sWater Revenue Refunding and Improvement Bond, Series 1994. F. To obtain financing to continue with the PROJECT, the BORROWER requested the STATE'S consent to the issuance of the City of Fort Morgan, Colorado, Water Works and Distribution Enterprise Water Revenue Bonds, Series 1997 ("1997 Bonds") to cover PROJECT costs while the BORROWER applies for and finalizes loans from various state and federal lenders, on a parity with the STATE'S lien on the water system revenues. G. At its July 21, 1997 meeting, the CWCB authorized the CWCB Director to consent to the parity request provided that the BORROWER is in substantial compliance with the ORIGINAL CONTRACT, has provided a parity certificate issued by a CPA certifying that the BORROWER'S rate schedule will generate revenues in an amount sufficient to pay annual operating and maintenance expenses, to make deposits to all required reserve funds, and to make all payments on both existing and proposed bonds, and has obtained a letter of credit backing the 1997 Bonds from a commercial bank acceptable to the STATE. H. At its November 1997 meeting, the CWCB authorized the CWCB Director to execute a Consent to Issuance of Parity Bonds by which the CWCB would consent to the issuance, on a parity with the CWCB's existing lien on the BORROWER'S water system revenues, of the 1997 Bonds and additional parity bonds issued to the Colorado Water Resources and Power Development Authority, CWCB and the United States Department of Agriculture- Rural Development for financing phase 3 of the PROJECT, and by which the CWCB would consent to the BORROWER'S execution and delivery of a reimbursement agreement with State Street Bank and Trust Company ("State Street Bank") conceming the letter of credit backing the 1997 Bonds ("Reimbursement Agreement"). The CWCB conditioned its consent on the BORROWER meeting the conditions established in July set forth above and on the Fort Morgan City Council adopting an ordinance raising water rates for 1998 and establishing a schedule for further raising water rates in 1999 and 2000. I. The BORROWER is in substantial compliance with the ORIGINAL CONTRACT, has submitted the required parity certificate to the STATE ("Coverage Certificate"), and has obtained a letter of credit backing the 1997 Bonds from State Street Bank. The BORROWER and State Street Bank entered into the. Reimbursement Agreement, which is incorporated herein by reference, on December 16, 1997. The Reimbursement Agreement provides, in pertinent part, that, if the BORROWER does not reimburse State Street Bank for all drawings on the letter of credit when due, State Street Bank shall hold a lien on the BORROWER'S water system revenues on a parity with the STATE'S lien on said revenues. On November 18, 1997, the Fort Morgan City Council adopted an ordinance raising water rates for 1998 and establishing a schedule for further raising water rates in 1999 and 2000. J. Based on its review of the Coverage Certificate, and of documents relating to issuance of the 1997 Bonds, including, but not limited tO,the Reimbursement Agreement, the Official Statement for the 1997 Bonds, dated November 21, 1997 ("Official Statement"), and the Trust Indenture dated December 16, 1997 between City of Fort Morgan, Colorado, Water City of Fort Morgan. Colorado & City of Fort Morgan, Colorado, Water Works and Distribution Enterprise Page 2 of 5