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<br />'" <br /> <br />~ <br /> <br />.. <br /> <br />Mr. Ioannides, P.C. <br />July 8, 1986 <br />Page Two <br /> <br />2. Pursuant to Sections 2 and 4 of Article II of the By-laws <br />of the District, the President and the Secretary of the Board of <br />Directors of the District have the power to sign contracts which <br />have been approved by the District, and to bind the District to <br />such contracts. The Contract was approved by the District's Board <br />of Directors at a regular meeting on June 11, 1986, and the <br />President and the Secretary were authorized and ordered to sign <br />the Contract on behalf of the District. Copies of the District's <br />By-laws, and of the minutes of the June 11, 1986 meeting, are <br />enclosed herewith. <br /> <br />3. We are of the opinion that the Board of Directors of the <br />District has the power to enter into the Contract without an <br />election, although not necessarily for the reasons set forth in <br />your request for an opinion. <br /> <br />The "wa ter supply exception" to the Colorado <br />Constitution, to which you refer in your letter, is found in <br />Article XI, Section 6 of the Colorado Constitution. Subsection <br />(1) of Section 6 provides that "No political subdivision of the <br />state shall contract any general obligation debt by loan in any <br />form" unless the question of incurring the debt has been approved <br />after an election. However, a "water supply exception" is <br />contained in Subsection (3), which reads: <br /> <br />(3) Debts contracted by a home rule city and <br />county, city or town, statutory city or town or <br />service authority for the purposes of supplying <br />water shall be excepted from the operation of <br />this section. <br /> <br />The District is a political subdivision of the state. <br />See C.R.S. 37-45-112(7). Accordingly, it is bound by the <br />provisions of Art. XI, Sec. 6. However, the "water supply <br />exception" applies only to certain municipalities and to service <br />authorities. If the District is a "service authority," then it <br />would fall within the "water supply exception," and it would be <br />clear that no election would be necessary. <br /> <br />However, it does not appear to us that the District is a <br />"service authority." Art. XI, Sec. 6 was repealed and reenacted <br />on November 3, 1970. The repeal and reenactment was accomplished <br />pursuant to Senate Concurrent Resolution No.6, entitled <br />"Submitting to the Qualified Electors of the State of Colorado an <br />Amendment to Articles XI, XIV, and XX of the Constitution of the <br />State of Colorado..." (a copy of which is enclosed herewith), <br />and a subsequent vote of the people of the State. Pursuant to <br />Senate Concurrent Resolution No.6, and the subsequent election, <br />Section 17, Article XIV, entitled "Service Authorities," was <br />