Title
RESOLUTION APPROVING AGREEMENT FOR COMPROMISE AND SATISFACTION OF BOND OBLIGATION OF THE PV WATER AND SANITATION METROPOLITAN DISTRICT ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE AND AUTHORIZING INCIDENTAL ACTIONS IN CONNECTION THEREWITH
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Summary and Background Information:
The City of Commerce City (“City), the PV Water and Sanitation Metropolitan District, acting in an enterprise capacity pursuant to the PV Water and Sanitation Metropolitan District Water Activity Enterprise (collectively, “PV”), and South Adams County Water and Sanitation District acting in an enterprise capacity pursuant to its Water and Sewer Enterprise (collectively, “SACWSD”), are parties to an Intergovernmental Water Resources Agreement dated February 8, 2006 (“2006 IGA”), as amended by the First Amendment to Intergovernmental Water Resources Agreement dated November 16, 2015, by which PV dedicated certain water to SACWSD and SACWSD issued to PV the right to purchase certain Equivalent Residential Unit Water Connections and Sanitary Sewer Connections (“PV ERUs”). PV issued bonds in 2006 for the purpose of financing the purchase by PV of those water rights and easements that were concurrently conveyed to the SACWSD in exchange for the PV ERUs (“2006 Bonds”) that PV anticipated selling from time to time to the City and other third parties.
The 2006 IGA has been fully performed by PV with regard to the conveyance of water rights and easements. PV has not, however, sold a substantial portion of the PV ERUs, is in default on the related mandatory sinking fund payments on the 2006 Bonds, and the unsold PV ERUs are the sole asset available to satisfy the debt service on the 2006 Bonds. The 2006 Bonds matured on December 15, 2017, and PV does not currently have, and does not expect to ever have, sufficient moneys to satisfy and discharge the total amount of principal of and interest due on the 2006
Proposed Settlement: To settle all outstanding matters with respect to the...
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