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HomeMy WebLinkAbout3.0 Conditional Approval1 GARFIELD COUNTY Board of County Commissioners FLAVEN CERISE COUNTY COURTHOUSE Carbondale 81623 109 8th Street Suite 300 ROBERT J. RICHARDSON Glenwood Springs, CO 81601-3303 Rifle 81650 Telephone: (303) 945-9158 LARRY R. SCHMUESER (303) 625-5571 Glenwood Springs 81601 ROGER LUDWIG Administrative Assistant The Garfield County Board of County Commissioners, in accordance with the requirements of the Colorado Special District Control Act, and specifically Sections 32-1-203 and 204, C.R.S., as amended, considered the proposed Service Plan for the waste water utility system for the Landis Sanitation District, at a public hearing held on March 11, 1985. All interested parties, as defined by statute, who were present at the hearing and the applicants representatives, also present at the hearing, were given an opportunity to be heard on the merits of the Service Plan submitted. In addition to the Service Plan submitted to the Garfield County Clerk and Recorder on January 11, 1985, the Board of County Commissioners also considered the modifications to the Service Plan submitted on the applicant's behalf on February 7, 1985. The Board of County Commissioners finds that the proposed Service Plan, with the modifications submitted on February 7, 1985, is in substantial compliance with the statutory requirements as set forth at Section 32-1-202(2), C.R.S., as amended. However, the Board of County Commissioners does hereby find that satisfactory evidence was presented at the public hearing that one or more of the criteria set forth at Section 32-1-2.03, C.R.S., as amended, have been met unless the following specified modifications to the proposed Service Plan are adopted. There was satisfactory evidence presented at the March 11, 1985 public hearing before the Board that the Service Plan, as presently proposed, is such that the area to be included in the proposed Special District does not have, or will not have, the financial ability to discharge the proposed indebtedness on a reasonable basis. The modifications, which the applicant submitted on February 7, 1985, are inadequate to provide the proposed Special District with the financial ability to discharge the proposed bonded indebtedness on a reasonable basis. The Service Plan as proposed, fails to make adequate provision to guarantee that the District, when formed, will not be compelled, at some future date, to impose an unreasonable and confiscatory mill levy, pursuant to Section 32-1-1201, C.R.S., as amended, in order to retire the proposed bonded indebtedness of the District should the applicant's development and sales projections, as set forth in the Service Plan proposal, prove to be inaccurate. Colorado law requires that the Board of Directors of a Special District, as proposed by the applicant, must raise sufficient funds to retire the District's bonded indebtedness, as it comes due. The applicant's Service Plan proposes a bonded indebtedness for Phase One of the project of approximately $1,475,000.00. Should the tax base projected in the Service Plan proposal not become available at the time or in the manner projected in the Service Plan, and the bonded indebtedness for Phase One of the project has been incurred, the District's Board of Directors would be required to raise sufficient funds, by imposition of a unreasonable, confiscatory mill levy or otherwise, to satisfy such bonded indebtedness. The statutory obligation upon the Board of Directors of the proposed Special District to raise the funds required to retire any indebtedness of the District as it comes due, could result in the District being unable to discharge the bonded indebtedness proposed in the Service Plan on a reasonable, non -confiscatory basis, in the absence of the developer, Spring Valley Ranch Limited, providing sufficient financial guarantees or security for the use and benefit of the District. Such financial security or guarantees, as provided by an irrevocable letter of credit for the use and benefit of the proposed District, would enable it to discharge the proposed bonded indebtedness by drawing upon such adequate financial security or guarantees posted for that express purpose, should the District Board determine that it would be required by State Law to impose an unreasonable and confiscatory mill levy upon the taxable property within the District. Approval of the Service Plan for the proposed Landis Sanitation District is conditional upon the applicant amending the Service Plan as follows. Paragraph 1 of the modification of Service Plan for the proposed Landis Sanitation District as submitted on February 7, 1985, shall be amended by the addition of the following language at the conclusion of the paragraph: This irrevocable letter of credit, the cost of which shall be solely borne by the Developer, Spring Valley Ranch Lirii.tc,C, shall be expressly for the use and benefit of the proposed District. Should the Board of Directors of the proposed District determine that it is necessary to place a call upon said irrevocable letter of credit, in order to avoid the certification of an unreasone+I e, confiscatory mill levy upon the taxable property within the District, for the purpose of punctually paying any bonded indebtedness then due and owing, then a mandatory 2 I redemption of the bonds secured by the letter of credit shall be required of the Trustee. The cost of such mandatory redemption of any bonded indebtedness shall be borne by the Trustees drawing, upon the irrevocable letter of credit posted by the Developer for the express use and benefit of the proposed District. 3 MODIFICATION OF SERVICE PLAN FOR THE PROPOSED LANDI'S SANITATION DISTRICT The following are hereby submitted as modifica- tions of the Service Plan of the proposed Landis Sanitation District pursuant to action taken by the Garfield County Planning Commission at a special meeting held by it on February 6, 1985, and as suggested by the proponent of the said proposed district. The modifications are: (1) All general obligation bonds issued to carry out the construction of the facilities for Phase I of the project shall be secured by an irrevocable letter of credit issued by a United States domestic banking institution federally chartered under United States banking regulations for the total amount of all bonds issued, together with an amount sufficient to repay no less than seven (7) months' accrued interest on the bonds so issued. (2) All general obligation bonds issued for the construction of facilities in all subsequent Phases shall be issued only through a reputable bonding firm. (3) The following shall pertain to the sewage treatment facilities: (a) The vegetation surrounding the plant shall be maintained at the cost of the District in a good and husband -like manner. (b) The plant shall be located within 250 yards of its presently depicted location unless made un- feasible due to severe engineering constraints. (c) The plant shall be operated in an odor - free manner, such operation to be demonstrated on final Plant design. (4) The following additional_ matters shall per- tain to annexation of other certain other properties to the District and .the furnishing of services by the District to properties not included within the boundaries of the Dis- trict, to -wit: (a) Existing single-family residences in existence on date of the formation of the District but not within the boundaries of the District may contract for services with the District; provided, however, services to be provided shall be specifically spelled out in a contract which shall also require: (i) That the individual property owner pay for all sewage facilities leading to the connection with District facilities, but which facilities shall be con- structed under the supervision and inspection of the District; (ii) That each property owner will pay the prevailing tap fee then being charged to residents of the District; -2- (iii) That each property owner shall pay service charges for operation and maintenance on the same schedule as residents of the District. (iv) That each property owner shall be subject to bylaws, rules and regulations of the District the same as if included in the boundaries of the District; provided, however, they shall not be required to pay ad valorem taxes assessed by the District. (b) Single-family residences in existence on the date of the formation of the District shall not be required to annex into the District; however, they may do so upon petition, review and acceptance. (c) Any residences coming into existence after the formation of the District shall receive service from the District only upon annexation into the District. SPRING VALLEY HOLDING, LTD. By Hal Terrell Agent and Owners' Representative Proponent of the Landis Sanitation District -3-