C153804 Contract - Laserfiche WebLink

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.. . . .' RESOLUTIONS OF THE STOCKHOLDERS OF THE LEFT HAND DITCH COMPANY The Stockholders of the Left Hand Ditch Company (Company) adopted a resolution on Februrary 4, 1995, to approve a loan from the State of Colorado Water Conservation Board (State) in the amount up to $370,000, not to exceed 75% of the actual project costs, at an interest rate not to exceed 4.375 percent for a term of 30 years. This loan was to help finance increasing the capacity of the spillway at the Left Hand Valley Reservoir as required by the State Engineers Office at an estimated cost of $490,400 for construction and engineering. The construction bid received for the project was in excess of the estimated cost by 27 percent. During an inspection of the dam outlet works in September 1997, it was discovered that a portion of the 30-inch steel outlet pipe was partially collapsed. Due to these additional conditions, the Company received approval from the State at its November 24, 1997 meeting to increase the loan by $190,000 for a total loan of up to $560,000, not to exceed 75 percent of the project costs at an interest rate of 4.375 percent for a term of 30 years. The Stockholders, at a Stockholders' meeting held February 7, 1998, at Niwot, Colorado, adopted the following resolutions for a loan in the amount of up to $560,000 from the State. At said meeting, the Stockholders charged that these resolutions are irrepealable during the term of the loan and, pursuant to the Company's bylaws, authorized the Board of Directors and officers as follows: 1. RESOLVED, to enter into and comply with the terms of a contract with the Colorado Water Conservation Board for a loan in the amount of up to $560,000, not to exceed 75% of the actual construction costs, and 2. RESOLVED, to levy and collect assessments from the Stockholders in an amount sufficient to pay the annual amounts due under the Loan Contract, and to pledge assessment revenues and the Company's right to receive said revenues for repayment of the loan, and 3. RESOLVED, to place said pledged revenues in a special account separate and apart from other COMPANY revenues, and 4. RESOLVED, to make the annual payments required by the promissory note and to make annual deposits to a debt service reserve fund, and 5. RESOLVED, to pledge as collateral for the loan the Left Hand Valley Dams and Reservoir owned by the Company, and execute documents necessary to convey a security interest in said property to the CWCB, and 6. RESOLVED, to execute all documents as required by the loan contract, including, but not limited to, a Security Agreement, Assignment Of Deposit Account As Security, and a Promissory Note, and 7. RESOLVED, to take such other actions and to execute such other documents as may be necessary to consummate and implement the loan.