HomeMy WebLinkAboutresolution.council.069-07
RESOLUTION NO. 69
(Series of 2007)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
SUBMITTING TO THE ELECTORATE OF THE CITY OF ASPEN A CERTAIN
QUESTION SEEKING AUTHORITY FOR THE ISSUANCE OF GENERAL
OBLIGATION BONDS FOR THE PURPOSE OF CONSTRUCTING AND
EQUIPPING A NEW HYDROELECTRIC FACILITY ON CASTLE CREEK.
WHEREAS, the City of Aspen owns and has continued to maintain certain assets
related to the original Castle Creek hydroelectric plant, operated from 1893 through 1958,
including water rights, easements, dams, headgate structures, pipeline, and water storage
facilities, and
WHEREAS, it is in the City's interest to renovate, reconstruct, and expand on these
existing assets for the purpose of generating hydroelectric power for the municipal electric
system for the benefit of its customers and the citizens of Aspen generally, and
WHEREAS, the proposed facilities to be constructed will be capable of delivering
approximately eight (8) percent of the municipal electric utility's power requirements
utilizing locally produced, clean, renewable energy and eliminating an estimated 5,167 tons
of carbon dioxide emitted from use of existing coal-fired power plants to the atmosphere
annually; and
WHEREAS, Article X of the City of Aspen Home Rule Charter requires voter
approval to increase City debt by the issuance of general obligation bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ASPEN, COLORADO, THAT:
The following question shall be placed on the ballot at the November 6, 2007,
election:
SHALL CITY OF ASPEN DEBT BE INCREASED BY UP TO $5,500,000, WITH A
MAXIMUM REPAYMENT COST OF $10,780,000, FOR CASTLE CREEK
HYDROPOWER FACILITY GENERAL OBLIGATION BONDS
SHALL CITY OF ASPEN DEBT BE INCREASED BY UP TO $5,500,000, WITH A
MAXIMUM REPAYMENT COST OF $10,780,000, BY THE ISSUANCE OF
GENERAL OBLIGATION BONDS FOR THE PURPOSE OF CONSTRUCTING AND
EQUIPPING A NEW HYDROELECTRIC FACILITY ON CASTLE CREEK, WHICH
DEBT SHALL BE PAY ABLE FROM (1) ELECTRIC UTILITY FEES AND (2) TO
THE EXTENT THE CITY COUNCIL DETERMINES THAT THE REVENUES
PROJECTED TO BE AVAILABLE FROM SUCH ELECTRIC UTILITY FEES WILL
BE INSUFFICIENT TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, AND
INTEREST ON SUCH DEBT AND TO OTHERWISE COMPLY WITH THE
COVENANTS OF THE ORDINANCE OR OTHER INSTRUMENTS GOVERNING
SUCH DEBT IN ANY YEAR, FROM THE TAXES DESCRIBED BELOW; SHALL
CITY TAXES BE INCREASED BY UP TO $359,128 ANNUALLY IN ANY YEAR
BY THE LEVY OF AD VALOREM PROPERTY TAXES, WITHOUT LIMITATION
AS TO RATE OR AMOUNT OR ANY OTHER CONDITION, TO PAY THE
PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH DEBT AND TO
OTHERWISE COMPLY WITH THE COVENANTS OF THE ORDINANCE OR
OTHER INSTRUMENTS GOVERNING SUCH DEBT IF AND TO THE EXTENT
THE CITY COUNCIL DETERMINES THAT THE REVENUES PROJECTED TO BE
AVAILABLE FROM SUCH ELECTRIC UTILITY FEES WILL NOT BE
SUFFICIENT THEREFOR; SHALL SUCH DEBT MATURE, BE SUBJECT TO
REDEMPTION, WITH OR WITHOUT PREMIUM, AND BE ISSUED, DATED AND
SOLD AT SUCH TIME OR TIMES, AT SUCH PRICES (AT, ABOVE OR BELOW
PAR) AND IN SUCH MANNER AND WITH SUCH TERMS, NOT INCONSISTENT
HEREWITH, AS THE CITY COUNCIL MAY DETERMINE; AND SHALL THE
CITY BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL OF [THE
REVENUES OF SUCH TAXES, THE PROCEEDS OF SUCH BONDS AND THE
EARNINGS THEREON] IN 2007 AND EACH SUBSEQUENT YEAR,
NOTWITHSTANDING THE LIMITATIONS OF ARTICLE X, SECTION 20 OF THE
COLORADO CONSTITUTION (TABOR), SECTION 29-1-301, COLORADO
REVISED STATUTES, OR ANY OTHER LAW?
INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen
00 tire 27" MY Ao"",, 2007. I
,#/IIlt/.
Michael C. Ireland, Mayor
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the
foregoing is a true and accurate copy of that resolution adopted by the City Council of the
City of Aspen, Colorado, at a meeting held on the day hereinabove stated.
~tyj;k~
JPW- saved: 8/2I/2007-510-G:\john\word\resos\ballot07-Nov-HYDRO BONDS.doc