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
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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.
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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.
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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.
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Wanda Sang, Ci~y Clerk
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Frank stites, Mayor
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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
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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.
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(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,
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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
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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:
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CITY OF WHEAT RIDGE
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Frank Stites, Mayor
THE CONSOLIDATED MUTUAL WATER
COMPANY
By
President
(SEAL)
Attest:
Secretary-Treasurer
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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.
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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
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APPENDIX A
(Attach Description of Project; Project Budget)
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