HomeMy WebLinkAbout1975-042-07/15/1975-APPROVING A MEMORANDUM OF AGREEMENT BETWEEN MORGAN GUARANTY TRUST COMPANY OF NEW YORK FIRST NATIONAL RESOLUTION 75 42
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING A MEMORANDUM OF AGREEMENT BETWEEN
MORGAN GUARANTY TRUST COMPANY OF NEW YORK
FIRST NATIONAL BANK PLATTE RIVER POWER
AUTHORITY THE TOWN OF ESTES PARK COLORADO
THE CITY OF FORT COLLINS COLORADO THE CITY
OF LOVELAND COLORADO AND THE CITY OF LONGMONT
COLORADO AND DIRECTING THE REPRESENTATIVE
FROM THE CITY TO THE PLATTE RIVER POWER
AUTHORITY BOARD OF DIRECTORS TO VOTE IN
FAVOR OF THE ADOPTION OF A GENERAL BOND
RESOLUTION AND SETTING FORTH THE UNDERSTANDING
OF THE CITY OF FORT COLLINS REGARDING PROVI-
SIONS OF A CONTRACT FOR ELECTRIC POWER AND
ENERGY BETWEEN THE CITY AND PLATTE RIVER
POWER AUTHORITY
WHEREAS the City Council of the City of Fort Collins has
reviewed Revenue Bond financing plans proposed for the Platte
River Power Authority ( Platte River ) including specifically
that certain resolution proposed for adoption by the Board of
Directors of the Platte River Power Authority entitled General
Bond Resolution ' a copy of which is on file with the City
Clerk and
WHEREAS Platte River needs to increase its available
interim financing by $5 000 000 00 and extend the maturity
date of all interim financing to October 1 1975 so as to
have adequate funds for construction financing and greater
flexibility in timing the marketing of such Revenue Bond financing
which need is recognized and acknowledged by this City Council and
WHEREAS Platte River has borrowed from First National
Bank Fort Collins Colorado (the Bank ) and from Morgan Guaranty
Trust Company of New York ( Morgan ) the total sum of $11 500 000 00
under the terms of various agreements to-wit
(1) Agreement dated July 25 1973 between Platte
River and Bank by which the sum of $4 000 000 00 was borrowed
(2) Agreement between Platte River and Morgan dated
September 18 1974 under which the sum of $2 500 000 00 was
borrowed
(3) Agreement between Platte River and Morgan dated
May 2 1975 by the terms of which $5 000 000 00 was borrowed and
WHEREAS the repayment of each loan is assured by the terms
of the loan agreements and the documents evidencing the loan
and by the resolutions of this City and other participants
acknowledging their obligation to provide Platte River on
a pro-rata basis with sufficient funds to the extent
necessary to enable Platte River to repay all principal
and interest due on said notes at maturity and
WHEREAS it is desirable that the terms of the loans should
be extended the loan agreements modified and one of the loans
increased and
WHEREAS the City Council is fully advised in the premises
NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY
OF FORT COLLINS
Section 1 That the Memorandum Agreement between Morgan
Guaranty Trust Company of New York First National Bank Platte
River Power Authority The Town of Estes Park Colorado the
City of Fort Collins Colorado the City of Loveland Colorado
and the City of Longmont Colorado a copy of which agreement
is attached hereto and made a part of this resolution is
approved
That the proper officers of the City of Fort Collins
Colorado are authorized and instructed to execute said memorandum
agreement on behalf of the City of Fort Collins and
That such memorandum agreement constitutes a valid and
legally binding obligation of the City of Fort Collins
Section 2 The general terms and conditions for the issuance
Of the Platte River Power Authority Electric Revenue Bonds as
set forth in the General Bond Resolution are hereby approved
and the representative of this City on the Board of Directors
of Platte River is hereby authorized and directed to vote in
ravor of the adoption of said General Bond Resolution by the
Board of Directors of Platte River substantially in the form
submitted to this Council and on file with the City Clerk
,together with such changes to Article II thereof as may be
deemed necessary to make such Electric Revenue Bonds more
marketable
Section 3 This City Council does hereby acknowledge that
Section 6 12 of the General Bond Resolution requires Platte
River to maintain rates so as to provide net revenues equal
to at least 1 25 times annual debt service to avoid default
which means that a rate in excess of that level is considered
necessary and desirable by the financial community and this
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City Council does hereby recognize and agree that such rate
and rate covenant was contemplated and intended by Section
2(b) (3-3.3-) of the September 5 1974 Contract for Electric Power
and Energy between this City and Platte River
Passed and adopted at a regular meeting of the City Council
held this 15th day of July A D 1975
ATTEST FI` Y
a or'`��
-City Clerk
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