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HomeMy WebLinkAboutResolution-1984-0896 A RESOLUTION NO. 896 CITY OF WHEAT RIDGE, COLORADO AUTHORIZING THE DELEGATION TO THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY, COLORADO OF THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE CONSOLIDATED MUTUAL WATER COMPANY AND THE EXECUTION AND DELIVERY OF A DELEGATION AGREEMENT IN CONNECTION THEREWITH. WHEREAS, the City of Wheat Ridge, Colorado (the "City") is authorized by the Colorado County and Municipality Development Revenue Bond Act constituting Article 3 of Title 29, Colorado Revised Statutes, as amended (the "Act") and by Part 2 of Article 1 of Title 29, Colorado Revised Statutes, as amended, to delegate by reso- lution to any other Colorado county or municipality its authority under the Act to finance projects under the Act; and WHEREAS, representatives of The Consolidated Mutual Water Company, a Colorado nonprofit corporation (the "Company"), have advised the City of the Company's interest in having the City issue a series of industrial development revenue bonds pursuant to the Act to finance the acquisition and construction of improvements and addi- tions to that portion of the existing water supply system of the Company located in the City, to be owned by the Company (the "Project") which Project is more specifically described in the Delegation Agreement, the proposed form of which has been presented to the City Council (the "Delegation Agreement"); and WHEREAS, the City desires to delegate its authority and powers under the Act to the Board of County Commissioners of -1- Jefferson County, Colorado ("Jefferson County") with respect to the Project; and WHEREAS, the Board of County Commissioners of Jefferson County has indicated its desire to accept such delegation and to finance the Project; and WHEREAS, it is necessary to evidence such delegation and the acceptance of such delegation by the Delegation Agreement which will be executed and delivered by Jefferson County, the City and the Company. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO, THAT: Section 1. In order to insure the financing of the Project to make additions and improvements to the water supply system facilities of the Company within the City, with the public benefits which will flow therefrom, it is deemed necessary and advisable that the Delegation Agreement be approved, executed and delivered by and on behalf of the City. Section 2. The form, terms and provisions of the Delegation Agreement, as set forth as Exhibit A hereto, be and hereby are approved and the Mayor and the City Clerk (and any Deputy City Clerk) of the City be and they hereby are authorized and directed to execute and deliver the Delegation Agreement. Section 3. The Mayor and the City Clerk (and any Deputy City Clerk) of the City be and they hereby are authorized and directed to take such other steps or actions as may be required to carry out the terms and intent of this resolution and of the Delegation Agreement. Section 4. The City shall be reimbursed for any expenses borne by the City in connection with the execution of the Delegation Agreement and the performance by the City of its obligations thereunder. -2- Section 5. The presently estimated maximum aggregate principal amount of revenue bonds that will be issued under the Act by Jefferson County to finance the Project and other improvements and additions to the Company's existing water supply system located out- side the City is $6,500,000. Section 6. Nothing contained in this resolution or in the Delegation Agreement shall obligate the City, except to the extent described in the Delegation Agreement, nor constitute the debt or indebtedness of the City within the meaning of the Constitution or statutes of the State of Colorado or the Charter of the City nor give rise to a pecuniary liability of the City, its agents, employees or officers or give rise to a charge against the general credit or taxing powers of the City. Section 7. If any section, paragraph, clause or provision of this resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this resolution. Section 8. All orders, bylaws and resolutions, or parts thereof, in conflict with this resolution are hereby repealed. This repealer shall not be construed to revive any order, bylaw or resolu- tion, or part thereof, heretofore repealed. Section 9. All action (not inconsistent with the provi- sions of this resolution) heretofore taken by the City Council and the officers of the City directed toward the authorization of the Delegation Agreement be and the same hereby is ratified, approved and confirmed. Section 10. This resolution shall take effect immediately upon its introduction and passage. -3- INTRODUCED, READ AND ADOPTED ON May 14, 1984, by a vote of for and against at a regular meeting of the City Council at 7:30 p.m. at Wheat Ridge City Hall, 7500 West 29th Avenue, Wheat Ridge, Colorado. /.' , ,~ :,.,.:.,,..... '\ ~ \ ATTEST:" ~L , " "','.. " 1 ;-- ( ,. 1.---...- 9,1l1.c'L'~ ~~_'/ f:-7'...... Wanda Sang, Ci~y Clerk .--------- ~ " - - //J'" .f; 4/(, :(.' ~ Frank stites, Mayor -4- DELEGATION AGREEMENT This Delegation Agreement is among the City of Wheat Ridge, Colorado ("City of Wheat Ridge"), Jefferson County, Colorado ("Jefferson County") and The Consolidated Mutual Water Company (the "company"). WIT N E SSE T H: 1. Preliminary Statement. Among the matters of mutual inducement which have resulted in the execution of this Delegation Agreement are the following: (a) The city of Wheat Ridge and Jefferson County are political subdivisions of the State of Colorado, each authorized by the provisions of the County and Municipality Development Revenue Bond Act constituting Article 3 of Title 29, Colorado Revised statutes, as amended (the "Act"), to issue revenue bonds for the purpose of defraying the costs of financing one or more projects or parts thereof to the end that more adequate facili- ties for furnishing water may be provided, which promote the public health, welfare, safety, convenience and prosperity and to enter into financing agreements (as defined in the Act) with respect to such projects, upon such terms and conditions as the Board of County Commissioners of Jefferson county and as the City Council of the City of Wheat Ridge may deem advisable. (b) The Act and Part 2 of Article 1 of Title 29, Colorado Revised Statutes, as amended, provide, in effect, that any municipality may by resolution delegate to any other Colorado county or municipality its authority under the Act to finance projects under the Act. (c) The Company is a Colorado nonprofit corporation and plans to acquire and construct improvements and additions to that portion of its existing water supply system in the City of A-l- wheat Ridge (the "Project"), which project is more specifically described in Appendix A hereto. (d) It is the finding and determination of the City Council of the City of Wheat Ridge that the public interest will be served if the City of Wheat Ridge were to encourage and induce the Company to undertake the Project in the City of Wheat Ridge. (e) The Company desires the City of Wheat Ridge to delegate its authority and powers under the Act to Jefferson County with respect to the Project. (f) The City Council of the City of Wheat Ridge has indicated its willingness to delegate to the Board of County Commissioners of Jefferson County its powers under the Act to finance the project to make additions and improvements to the water supply system facilities of the Company within the City of Wheat Ridge. (g) The Board of County Commissioners of Jefferson County has indicated its willingness to accept the delegation by the City of Wheat Ridge to finance the Project. 2. Delegation by the City of Wheat Ridge. Pursuant to the Act and Part 2 of Article 1 of Title 29, Colorado Revised Statutes, as amended: (a) The City Council of the City of Wheat Ridge hereby delegates to the Board of County Commissioners of Jefferson County all authority of the City of Wheat Ridge to finance and otherwise take action and exercise power under the Act on behalf of the City of Wheat Ridge with respect to the Project to finance the Project to make additions and improve- ments to the water supply system facilities of the Company within the City of Wheat Ridge. A-2- (b) The City Council of the City of wheat Ridge agrees that it will take such further action and adopt such fur- ther proceedings as may be required to implement the terms of this Delegation Agreement. 3. Acceptance of Delegation by Jefferson County. Pur- suant to the Act and Part 2 of Article 1 of Title 29, Colorado Revised Statutes, as amended: (a) The Board of County Commissioners of Jefferson County hereby accepts the delegation granted to it by the City of Wheat Ridge, subject to the terms and conditions herein contained. <b) The Board of County Commissioners of Jefferson County agrees that it will finance the Project, subject to terms and conditions to be agreed upon by Jefferson County and the Company. (c) The Board of County Commissioners of Jefferson County agrees that it will take such further action and adopt such further proceedings as may be required to implement the terms of this Delegation Agreement. 4. Agreement of the Companv. (a) The Company agrees that it will reimburse the City of wheat Ridge and Jefferson County for all reasonable expenses the City of Wheat Ridge and Jefferson County may incur arising from the execution of this Delegation Agreement and the performance by the City of Wheat Ridge and Jefferson County of their obligations hereunder. (b) The Company will indemnify and hold the City of Wheat Ridge, its agents, employees or officers and Jefferson County, its agents, employees or officers free and harmless from any loss, claim, damage, tax, penalty, liability, disbursement, A-3- litigation expense, attorney's fee and expense or court cost arising out of, or in any way relating to, the execution or per- formance of this Delegation Agreement, the financing of the project, or any other cause whatsoever pertaining to the delega- tion by the City of Wheat Ridge of its authority to Jefferson county to finance the Project. (c) The Company agrees that it will take such further action and adopt such further proceedings as may be required to implement the terms of this Delegation Agreement. 5. General Provisions. (a) This Delegation Agreement is hereby declared irrevocable during the term of the financing agreement (as defined in the Act) to be entered into by Jefferson County and the Company with respect to the Project and any other projects of the Company to be financed by Jefferson County. (b) This Delegation Agreement shall automatically terminate 24 months from the date hereof if Jefferson County has not entered into the financing agreement described in paragraph 5(a) above, provided that nothing herein shall be deemed to prevent Jefferson County and the City of Wheat Ridge from entering into a subsequent delegation agreement with respect to the Project upon such termination of this Delegation Agreement. (c) This Delegation Agreement shall not constitute the debt or indebtedness of Jefferson County or the City of Wheat Ridge within the meaning of the Constitution or statutes of the State of Colorado or the Charter of the City of Wheat Ridge nor give rise to a pecuniary liability or a charge against the general credit or taxing powers of either Jefferson County or the City of Wheat Ridge or give rise to a pecuniary liability A-4- of the officers, agents, or employees of either Jefferson County or the City of Wheat Ridge. IN WITNESS WHEREOF, the parties hereto have entered into this Delegation Agreement this 14th day of May, 1984. JEFFERSON COUNTY, COLORADO By (SEAL) Chairman Board of County Commissioners Attest: Deputy County Clerk Attest: ...--.~."-".;I.-~ /, -:::;:;:- :JJ ",c........ ,/ ~. ' - ,",,f J! $. :~"o. ~---...>: " .... {~-:/> ,.-' ' \ 1/,">, >,,: :", ' '. ~ , ~ \ ,.~\ 1\.,...' :"'C_'" <' . (SEAL) \,\>.,,-_.J ".':'~'f.> J./i/ -....::..~.'}.;~- I -- (7~//, ~ [, ,,' --"I : ,~ " Wanda Sang, City/;Clerk ,/ CITY OF WHEAT RIDGE ~. By ~/,;',J:~/ Frank Stites, Mayor THE CONSOLIDATED MUTUAL WATER COMPANY By President (SEAL) Attest: Secretary-Treasurer A-5- CJ CJ ~~ g cd" \.!'l cd" N te cO ~ .;.> ~ N o N I- _ (""l ~\ 0 <1' , \.!'l CJ (""l I - ...0 cO r- ~~ ~ g (""l ~ cO ~ ~ '" N ~ - ~ 0 N ~~ ~ '" '" - .... -l' -l' ;\ N ...0 N - <1' ~ '" .- \ CJ CJ U; 0'1 1,.(1 .... \.!'l ~ ~ ...0 (""l (""l ...0 <..:: <1' N (""l - e<- N .... d. .... -:z;. \ N '" N ...0 , N I 0 N - I 0 , 0 , I \ 0 0 0 r- .... (""l ~ ...0 (""l .... 1.0 \.!'l N (""l - .... .... .... \ s .... - 0'1 \ cO N - .;.> V> .;.> V> <J'I ... .;.> % V> C -l' 0 ..... .- C V> ... ..... Q> te "'" 0 ~ .;.> Cf 06 "'" 0 ,t; .;.> u" .;.> .;.> V> -l "'" 'gl ~ u" 0> -l .;.> C =- V> ..... U S :3- '0. V> ~ u.l u.l U te 0 ..... - ~ 0 .;.> :,t. u u" ~ 2 u .;.> ~ c (.!l -5 .0 -5 ~ ~ - ~ .- .- ... u" ...0 c.- eO l- V> ~ V> ~ N (""l ~ :i -l' ? % .- .;.> t.!) u IQ ~ <:!. .. <J'I :> ... -:z;. V> Q) :;: ol) l-'" 2 - ~ :> V> -l ~ .- ~ :> <:!. N 'if, - 0 :;: :0 ~ u.J ~ :0 .... 0 ~ u ~ .... u .... .... .- ~ 0 .... ..... r- 0 \.lo- ~ .- ...... 0 ~ 0- ~ \.lo- '0, ..... 0 ~ .- 0 0 .- '5 u.J ..J .... 0 r- V> u.J - 7, 0 0 .- V> ~ ? u.J Cl 0 cd" ~ u" .- U ~ 0 '" . ~ c:::> ~ .- ...0 ~ 1,.(1 u-l \.lo- ~ ~ .... u.l t; ? \.l0- r- .... '@ a 'c; 0 u-l ~ ? .-::> ~ .- l-'" 0 ~ ~ ~ .-::> u" .- <:!. 0- -l -:z;. ..J :;: 0- ~ 0- d:. :;: THE CONSOLIDATED MUTUAL WATER COMPANY p, O. BOX ll5068-1007~ WEST COLFAX AVENUE LAKEWOOD. COLORADO 8021~-TEL.EPHONE 238.0451 FACTS ABOUT CONSTRUCTION ACTIVITIES OF THE CONSOLIDATED MUTUAL WATER COMPANY The Consolidated Mutual Water Company will initiate three major facili- ties construction projects during 1984. They are comoonents of a five- year Major Capital Improvement Program approved by Consolidated Mut~a: 's Board of Directors in 1981. The three projects include: . Enlargement of the Maple Grove Reservoir. The reservoir, located in the vicinity of West 27th Avenue and Youngfield Street, is part of a system which supplies about one-fourth of the Company's customers. The other three-fourths are served with water purchased from the Denver Water Department. . Expansion of the existing Maple Grove Water Treatment Plant office, laboratory, and maintenance facilities. . Construction of a new building northwest of the Maple Grove Reservoir, which will house the Company's administrative of- fices, a vehicle garage and enclosed materials storage space. All of the construction will occur on property already owned by Consoli- dated Mutual. The Company's current administrative office building and maintenance facilities, on West Colfax Avenue just west of Kipling Street, and storage facilities at West 12th Avenue and Quail Street, will be sold, with the proceeds helping to finance the new projects. Following are some project details: Maple Grove Reservoir Enlargement Since 1932, Consolidated Mutual has contracted with the Denver Water Department for water. However, in the early 1950's Denver ran out of ava ilable water for a time, and Consol idated Mutual buil t the Maple Grove Reservoir and Water Treatment Plant to meet some of the needs of its service area. The Maple Grove system delivers quality water at a cost competitive with the price of water purchased from Denver. By deepening the south end of the reservoir and constructing a sediment- ation basin, the Company can utilize its existing storage decrees, pro- vide for increased water supply demands on the system, and compensate for the loss of existing storage through siltation over the years. The project, which will begin during April, will increase the capacity of the reservoir -- currently about 700 acre-feet -- to 1,000 acre-feet. An estimated 900,000 cubic yards of silt and earth will be removed over about a six-month period. The project will not result in raising the current level of water impoundment, but will improve the existing inci- dental flood routing benefits of the reservoir. The material removed from the reservoir will be trucked to construction projec~s which require fill dirt. It is estimated that traffic on Young- field Street -- which currently averages 1,700 vehicles per hour during peak periods -- will increase by an average of 70 vehicles per hour dur- ing the reservoir project. Expansion of Facilities at the Maple Grove Water Tr~atment Plant This project, which is scheduled to begin during the summer, will im- prove the analytical capabilities of the current laboratories and bring together many treatment plant support services under one roof. The expansion will add 6,300 square feet of new space to the current treatment plant structure. Extensions will be made to the north and south sides without significantly adding to the height of the building. The expansion will not, at this time, increase the output of treated water, but will add to the current laboratory and office space. Several services now handled at various Company locations will also be performed at the treatment plant. The expansion will include a new meter repair shop, machine shop, plant maintenance shop, two indoor vehicle repair bays, and employee locker and shower rooms. In addition, plant and operational studies, to determine the feasibility of increasing the treatment capacity of the plant, are underway. New Office-Garaqe-Warehouse Facility This facility will enable Consolidated Mutual to solve a chronic short- age of space. System facilities and number of shareholders served have almost doubled since our current office, maintenance and storage facili- ties were built. But, just as importantly, the new facility will bring Consolidated Mut- ual supervisory and staff functions together for the first time, result- ing in many operating efficiencies. Another advantage is that vehicles and supplies needed for routing main- tenance of the system and e~ergencies would be garaged out of the weath- er. Thousands of dollars currently are spent annually -- and service calls are delayed -- as a result of outdoor storage of supplies and vehicles. -2- About 19,000 square feet of office space, 21,000 square feet of garage space and 12,000 square feet of warehouse space will be included. Groundbreaking for this facility is expected to occur in May. Completion is targeted for February, 1985. Costs of the Major Capital Improvement Pro9ram In addition to the three construction projects outlined, the five-year Major Capital Improvement Program, approved by Consolidated Mutual's Board of Directors in 1981, includes other projects which are well along in design: . Construction of major additions to transmission mains, pump- ing and treated water storage facilities. . A computer system for electronic data processing, monitoring and control of water delivery systems. While current revenue levels are adequate to pay for some of the planned improvements, a bond issue of approximately $6.5 million will be re- quired. The bonds will be retired through a combination of future rev- enues and the proceeds from the sale of properties which the new facili- ties will replace. Major Contractors Architect, Project Manager: General Contractor: Structural, Traffic: Mechanical: Electrical: Landscape: Duff/Reck Architects Turnmar Construction Company KKBNA Inc., Consulting Engineers Sturm-Ballard Inc. Gambrell Engineering Inc. Terraspec Design Group -3- APPENDIX A (Attach Description of Project; Project Budget) A-6-