HomeMy WebLinkAbout1975-025-04/15/1975-CLARIFYING SOME OF THE TERMS OF THE AGREEMENT OF SEPTEMBER 5, 1974 BETWEEN THE CITY OF FORT COLLINS RESOLUTION 75 25
OF THE COUNCIL OF THE CITY OF FORT COLLINS
CLARIFYING SOME OF THE TERMS OF THE AGREEMENT
OF SEPTEMBER 5 1974 BETWEEN THE CITY OF FORT
COLLINS AND PLATTE RIVER POWER AUTHORITY AND
EXPRESSING THE UNDERSTANDING AND AGREEMENT
OF THE CITY REGARDING SUCH CONTRACT
WHEREAS The City of Fort Collins (the Participant ) on
the 5th day of September 1974 entered into a Contract for the
Supply of Electric Power and Energy with the Platte River Power
Authority ( Platte River ) wherein Platte River contracted to
provide electrical power and energy to the Participant which
electrical power and energy the Participant agreed to take and
pay for at the rate set forth in said Contract for the Supply of
Electric Power and Energy the provisions of which are incorporated
herein by this reference the same as if fully set forth and
WHEREAS Paragraph 2 (b) of said Contract for the Supply
of Electric Power and Energy provides that the rate charged by
Platte River shall be reviewed annually and shall be revised
if necessary so as to provide sufficient revenues to Platte
River with the revenues of Platte River from all other sources
to enable Platte River to make payments on account of principal
of and interest on all indebtedness of Platte River and
WHEREAS Platte River is now in the process of arranging
an additional interim borrowing line of credit from Morgan
Guaranty Trust Company of New York in the principal amount of
$5 000 000 00 with an interest rate equal to 70/ of the minimum
commercial lending rate of Morgan Guaranty Trust Company of New
York as the same shall exist from time to time (with increased
interest in the event the interest is not tax exempt) which
interim borrowing will mature and become due and payable on
September 1 1975 and
WHEREAS Platte River intends to repay such interim borrowing
from the proceeds of long-term publicly marketed indebtedness
of Platte River which Platte River intends to issue prior to
September 1 1975 but that if for any reason repayment is
not made from such source it must be made from other sources
available to Platte River and
WHEREAS Platte River and the Participant recognize that
Platte River may increase its rates in an amount which would be
sufficient with other available funds if any to fully pay
on September 1 1975 all indebtedness of Platte River including
all amounts due Morgan Guaranty Trust Company of New York under
the loan agreement to be entered into between Platte River and
Morgan Guaranty Trust Company of New York and other loan agree-
ments between it and Morgan Guaranty Trust Company of New York
and First National Bank Fort Collins Colorado and in view
of the fact that Platte River is an agency and instrumentality
of the Participant and other municipalities and not an independent
organization except in form and name Platte River could so
increase its rates or require prepayment for power to be fur-
nished if funds should be required for the payment of principal
and interest on all of said interim borrowing and
WHEREAS such rate increasing and fund raising abilities
of Platte River constitute the fundamental assurance of repayment
being relied upon by the Morgan Guaranty Trust Company of New
York in entering into such interim loan agreement with Platte
River _
NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY
OF FORT COLLINS that such City (the "Participant") does hereby
recognize and agree
(a) that paragraph 2 (b) of the Contract for the
Supply of Electric Power and Energy between the Participant and
Platte River for electric service was intended to and does
empower and authorize Platte River if necessary to increase
the rate charged by it pursuant to said contract
(b) that Platte River may require prepayments for
power to be furnished in the future to be made by the participating
towns and cities and
(c) that the Participant will provide Platte River
on a pro rata basis with all other participating towns and
cities with sufficient funds to the extent necessary and to
the extent not provided under the authorities contained in
clauses (a) and (b) of this Resolution to enable Platte River
to repay at maturity whether by acceleration or otherwise the
principal and interest required by all loan agreements between
Platte River and Morgan Guaranty Trust Company of New York and
notes executed in connection therewith including but not limited
to the $5 000 000 00 loan now being arranged and to also repay
at maturity the principal and interest required by the loan
agreement between Platte River and First National Bank Fort
Collins Colorado
Passed and adopted at a regular meeting of the City Council
held this 15th day of April A D 1975
ATTEST'' Mayor
Deputy City C1eL,