HomeMy WebLinkAboutbocc.res.120.1976
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C E R T I F I E D R E C O R D
0 F
THE BOARD OF COUNTY CO'+!MiSSIONER.S
OF PITKIN COUNTY, COLORADO
RELATING TO THE SALE AND ISSUANCE OF ITS
AIRPORT REFUNDING AND IMPROVEMENT REVENUE BONDS,
SERIES 1976,
IN THE PRINCIPAL AMOUNT OF $1,200,000
DATED OCTOBER 1, 1976
NOTICE OF MEETIDIG
TO THE BOARD OF COUNTY COMt1ISSI0NERS OF PITKIN COUNTY, COLORADO:
NOTICE is hereby giver. that a 1~FG~1/~AJQ meeting of
the Board of County Commissioners of Pitkin County will be held
at the Pitkin County Courthouse, Pitkin County, Colorado, on
.,.--
Monday, the 27th day of September, 1976, at the hour of `J
o'clock ~ M., at which meeting the Board will consider and
act upon matters relatincl to the authorization and sale of the
County's Airport Refunding and Improvement Revenue Bonds, Series
1976, and take up any other business to come before it.
GIVEN under my hand and the seal of said County as
of the ~~day of September, 19"
By
Title
ACIiAIOWLEDGP~ENT OF NOTICE
AND CONSENT TO t1EETING
We, the undersigned, members of the Board of Commission-
ers of the above designated County, do hereby acknowledge receipt
of the foregoing notice of rieeting, and we hereby waive any and
all irregularities, if any, in such Notice and in the time and
manner of service thereof upon us, and consent and agree to the
holding of such meeting at the time and place specified in said
Notice, and to the transaction of any and all business which may
come before such meeting.
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c~.~
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STATE OF COLORADO )
COUNTY OF PITKIN )
ss.
The Board of County Commissioners of Pitkin County,
Colorado, met in regular session at The Pitkin County Courthouse,
Aspen, Pitkin County, Colorado, at the hour of 2:30 o`clock P.M.,
on Monday, the 27th day of September, 1976.
Present:
Chairman and
Commissioner:
Commissioners:
Joseph E. Edwards, Jr.
Michael J. Kinsley
Dwight K. Shellman
Absent: None
Also present:
County Clerk: Julie Hane
Thereupon, Commissioner Shellman
was read in full the following Resolution:
introduced and there
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R E S O L U T I O N N O. ~~p'' Z~
L~]HEREAS, the County of Pitkin, State of Colorado,
(the "County") has heretofore determined to develop airport
facilities for the County, to the extent the same are economically
feasible and can be financed; and
WHEREAS, said County has heretofore been able to and
has provided portions of the necessary airport facilities, which
are now owned and being operated by the County; and
WHEREAS, the Board of Commissioners of said County
(the "Board") did in 1975 determine and declare the necessity
of accuiring and constructing a new airport terminal facility,
and all necessary incidentals and appurtenances thereto, in the
area of the then existing airport facilities of said County;
and
WHEREAS, the then estimated costs of acquiring, con-
structing and providing said facility was the sum of approximately
$1,000,000; and
WHEREAS, the Board, pursuant to the provisions of
Colorado Revised Statutes 1973, Title 30, Article 20, part 3 (the
"Act"), was then, and continues to be authorized to borrow money
and issue revenue anticipation warrants of said County for such
purposes, pledging to the payment. of such warrants the revenues
derived and to be derived from the ownership and operation of such
facilities; and
4]HEREAS, the Board therefore determined to issue revenue
anticipation warrants in the principal amount of $1,000,000
for such purposes; and
WHEREAS, due to the then existing high interest rates
of the market for such warrants if issued over a long term, and
the availability of relatively lower interest rate short term
financing, the Board determined to issue such warrants on a short
term financing basis; and
P]HEREAS, on or about July 14, 1975, the County did
sell, issue and deliver to the United Bank of Denver, National
Association, Denver, Colorado, as purchaser thereof, $1,0~J0,000 of
the County's Airport System Revenue Anticipation Warrants, Series
1975A (the "1975 Bonds"), dated June 1, 1975, bearing interest
from date to maturity, payable on December 1, 1975, and Gemi-
annually thereafter on June 1 and December 1 each year at the
rates and for the periods as follows:
Applicable
For the Period Interest Rate
from June 1,
from December
from December
from December
and maturing
1978; and
1975 to December 1, 1975
1, 1975 to December 1, 1976
1, 1976 to December 1, 1977
1, 1977 to June 1, 1978
$100,000 on June 1, 1977,
5.500 per annum
5.75 per annum
5.8750 per annum
6.00 per annum
and $900,000 on June 1,
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WHEREAS, at the time of issuance of said 1975 Bonds it
was contemplated by the Board that at an advantageous later date,
at or prior to the maturity of said 1975 Bonds, the County would
issue refunding warrants or bonds on a longer term basis to
refund, pay and replace said short term 1975 Bonds and to consti-
tute the permanent financing of said facilities;
WHEREAS, the County has also heretofore determined and
declared, and does hereby reaffirm, the necessity of acquiring
approximately 210 acres of additional land adjacent to the present
airport for airport purposes; and
WHEREAS, the present estimated total cost of acquiring
such additional land is the sum of approximately $2,472,500.00,
of which total it is estimated that approximately $2,225,250.00
will ultimately be paid from the proceeds of Federal or State
grants, and the additional amount of approximately $47,250.00
will be paid from other available funds of the County; and
WHEREAS, the Board, pursuant to the provisions of
Colorado Revised Statutes 1973, Title 11, Article 54 (the "Refund-
ing Revenue Securities Law" or the "Refunding Act"), is authorized
to refund its obligations, such as the 1975 Bonds, and for the
purpose to issue its refunding revenue bonds, pledging to the
payment of such refunding bonds the revenues derived and to be
derived from the ownership and operation of facilities and pro-
jects, such as the County's airport facilities; and
WHEREAS, said Refunding Act further authorizes the Board
to combine bonds issued for refunding purposes with bonds issued
for other lawful purposes in a single issue or series; and
WHEREAS, the Board has therefore determined to issue
its revenue bonds in the total principal amount of $1,200,000, of
which amount $1,000,000 is to be used and applied for the purpose
of refunding, paying and retiring the $1,000,000 of its outstand-
ing 1975 Bonds, and $200,000 of which is to be used and applied to
the acquisition of additional land for airport purposes; and
WHEREAS, the County, working with and through Duane G.
Lankford & Company, also D/B/A C & L Associates, Ltd. (hereinafter
referred to as the Financial Advisor), has obtained a purchaser
for said refunding and improvement bonds on terms, conditions and
provisions hereinafter set forth which are reasonable and accept-
able to the Board, said purchaser being E. F. Hutton and Company,
Inc., 1700 Broadway, Denver, Colorado, 80202 (the "Purchaser");
and
WHEREAS, the net effective interest rate on said re-
funding and improvement bonds during their term shall not exceed
8.00, such having been hereinafter determined and declared
to be the maximum authorized net effective interest rate for
said refunding and improvement bonds; and
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WHEREAS, :, is now necessary to autY. ~ize the issuance,
and to provide for the details and security, and the disposition
and use of the proceeds of said refunding and improvement bands;
and
WHEREAS, it is both necessary and desirable to provide
for the earliest possible delivery of said refunding and improve-
ment bonds to the Purchaser thereof in accordance with their
purchase agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMIS-
SIONERS OF THE COUNTY OF PITKIN, STATE OF COLORADO:
Section 1. Bond Details. That in accordance with
the Act and the Refunding Act, there shall be issued negotiable
coupon bonds of the County, each to be designated "Airport Refund-
ing and Improvement Revenue Bond, Series 1976 (the "Bonds"), in
the total principal amount of $1,200,000, $1,000,000 of the
proceeds of which shall be used and applied for the purpose of
refunding, paying and retiring valid and outstanding revenue
obligations of the County, being specifically the 1975 Bonds,
and $200,000 of the proceeds of which shall be used and applied
for the purpose of providing funds with which to pay a portion of
the costs and expenses of acquiring approximately 210 acres
of additional land adjacent to the present airport facilities for
airport purposes, together with necessary incidentals and appur-
tenances thereto. Said Bonds, both as to the principal thereof
and the interest thereon, shall be payable solely and only from
and out of the Net Revenue (as hereinafter defined) derived or to
be derived by the County from and through the ownership and
operation of the Airport Facilities, as hereinafter defined and
set forth.
Said Bonds shall be issued as a single issue and series
of bonds, designated as specified above. However, in order
to clearly demonstrate compliance with all provisions of the
Act- and the Refunding Act, it is necesary to specifically set
forth and designate certain Bonds of said issue to be issued for
such refunding purposes and other Bonds of said issue for such
land acquisition purposes. It is therefor determined and declared
that the Bonds issued for each of said separate purposes shall be
as follows:
Bonds for Refunding Years of Bonds for Land Acquisition
Principal Bond Maturity Principal Bond
Amount Numbers Amount Numbers __
$10,000 3 - 4 1977 $10,000 1 - 2
15,000 7 - 9 1978 10,000 5 - 6
20,000 12 - 15 1979 10,000 10 - 11
25,000 18 - 22 1980 10,000 16 - 17
25,000 25 - 29 1981 10,000 23 - 24
$30,000 32 - 37 1982 $10,000 30 - 31
30,000 30 - 45 1983 10,000 38 - 39
35,000 49 - 54 1984 10,000 46 - 47
40,000 57 - 64 1985 10,000 55 - 56
40,000 67 - 74 1986 10,000 65 - 66
(Continued)
Bonds for Refunding Years of Bonds for Land Acquisition
Principal Bond Maturity Principal Bond
Amount Numbers Amount Numbers
$45,000 77 - 85 1987 $10,000 75 - 76
50,000 88 - 97 1988 10,000 86 - 87
55,000 100 - 110 1989 10,000 98 - 99
65,000 II3 - 125 1990 10,000 111 - 112
70,000 128 - 141 1991 10,000 126 - 127
$75,000 144 - 158 1992 $14,000 142 - 143
80,-000 161.- 176 1993 10,000 159 - 160
90,000 179 - 196 1994 10,000 177 - 178
95,000 199 - 217 1995 10,000 197 - 198
105,000 220 - 240 1996 10,000 218 - 219
That said Bonds shall be negotiable in form,
payable to bearer, shall be dated October 1, 1976, shall consist
of 240 bonds in the denomination of $5,000 each, numbered 1 to
240, inclusive, shall bear interest from date to maturity, as
evidenced by interest coupons, at the rates hereinafter specified.
Said interest shall be payable on April 1, 1977, and semi-annually
thereafter on the 1st day of April and the 1st day of October each
year, and said Bonds shall mature serially on October 1 in the
years and amounts set forth below:
Amount Maturity Interest Rate
$ 20,000 1977 7%
25,000 1978 7%
30,000 1979 7%
35,000 1980 and 1981 7%
40,000 1982 and 1983 7%
$ 45,000 1984 7-1/4%
50,000 1985 and 1986 7-1/4%
55,000 1987 7-l/4%
60,000 1988 7-5/8%
65,000 1989 7-5/8%
$ 75,000 1990 7-5/8%
80,000 1991 7-5/8%
85,000 1992 7-5/8%
90,000 1993 7-3/4%
100,000 1994 7-3/4%
$ 105-,000 1995 7-3/4%
115,000 1996 7-3/4%
The Bonds and Interest Coupons shall be payable at
United Bank of Denver National Association, Denver, Colorado.
Bonds of said issue maturing on or before October 1,
1986, are not redeemable prior to their respective maturities.
Bonds maturing on or after October 1, 1987, are redeemable at the
option of the County, in whole or in part, and if in part in
inverse numerical order, on October 1, 1986, and on any interest
payment date thereafter prior to maturity, upon payment of par and
accrued interest, plus a premium of _ a,a o % of principal.
Notice of any such redemption prior to maturity shall specify the
date of redemption, shall adequately describe the Bonds to be so
redeemed by designation and reference to details thereof, and
shall be given by publication at least one time, in a newspaper of
general circulation in the County, not less than thirty (30) days
prior to the date set for redemption.
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Section 2. Form and Execution of Bonds and Interest
Coupons. The Bonds shall be signed with the facsimile signature
of the Chairman of the Board of Commissioners, countersigned
with the facsimile signature of the County Treasurer, with
a facsimile of the seal of the County affixed thereto, attested
with the manual signature of the County Clerk. The interest
accruing on said Bonds shall be evidenced by interest coupons
thereto attached, bearing the facsimile signature of said Chair-
man of the Board, and when so executed, such coupons shall be
the binding obligations of the County, according to their import.
Should any officer whose manual or facsimile signature appears
on said Bonds or the interest coupons attached thereto, cease to
be such officer before delivery thereof to the purchaser, such
manual or facsimile signature shall nevertheless be valid and
sufficient for all purposes.
The Bonds and interest coupons to be attached
thereto shall be in substantially the following form:
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF PITRIN
AIRPORT REFUNDING AND IMPROVEMENT REVENUE BONDS
SERIES 1976
No. $5,000
The County of Pitkin, State of Colorado, for value
received, hereby promises to pay to the bearer hereof out of the
special funds hereinafter designated, but not otherwise, the sum
of
FIVE THOUSAND DOLLARS
in lawful money of the United States of America, on the 1st
day of October, 19 with interest thereon from date to matur-
ity, as evidenced by interest coupons hereto attached, at the rate
of per centum
( ~) per annum, payable on April 1, 1977, and semi-
annually thereafter on the 1st day of April and the lst day of
October each year, both principal- and interest being payable at
United Bank of Denver National Association, Denver, Colorado,
upon presentation and surrender of said coupons and this Bond as
they severally become due.
Bonds of said issue maturing on or before October 1,
1986, are not redeemable prior to their respective maturities.
Bonds maturing on or after October 1, 1987, are redeemable at the
option of the County, in whole or in part, and if in part in
inverse numerical order, on October 1, 1986, and on any interest
payment date thereafter prior to maturity, upon payment of par and
accrued interest, plus a premium of 2.OOo of principal. Notice
of any such redemption prior to maturity shall specify the
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date of redemption, shall adequately describe the Bonds to be so
redeemed by designation and reference to details thereof, and
shall be given by publication at least one time, in a newspaper of
general circulation in the County, not less than thirty (30) days
prior to the date set for redemption.
Bonds of the issue of which this is one are issued
by the Board of Commissioners of Pitkin County, Colorado, for the
purpose of refunding, paying and retiring valid and outstanding
revenue obligations of the County and for the purpose of providing
a portion of the funds for acquirinq_ additional land adjacent to
the County's present airport facilities, for airport purposes,
together with necessary incidentals and appurtenances thereto,
under, by virtue of and in full conformity with the provisions of
the Constitution and Laws of the State of Colorado, more particu-
larly being Colorado Revised Statues, 1973, Title 30, Article 20,
Part 3 and Title 11, Article 54, and pursuant to a Resolution duly
adopted and approved prior to the issuance of this Bond.
Both the principal of this Bond and the interest hereon
are payable solely from and as security therefor there are
pledged, pursuant to said Resolution, all of the ret Revenue
derived and to be derived by the County from the ownership and
operation of the County's Airport and Related Airport Facilities,
and a special fund created in full conformity with law and desig-
nated "County of Pitkin, Airport Refunding and Improvement
Revenue Bond Sinking Fund" of said County, into which Fund the
County covenants to pay from the revenues, other than tax re-
venues, derived and to be derived from the ownership and operation
of the Airport and Related Airport Facilities, after deduction
only of the costs and operation, maintenance and ordinary repairs
a.nd a necessary reserve for said costs, sufficient monies for
payment of the principal of and interest on the Bonds of the issue
of which this is one and for a reasonable and necessary reserve
for said principal and interest, all as more specifically set
forth in said Pesolution.
It is hereby recited, certified and warranted that for
the payment of this Bond and the interest thereon the County has
Created and will maintain said revenues and Fund and as an irre-
vocable charge thereon, will pay this Bond and the interest
thereon, in the manner provided by said Resolution. For a des-
cription of said Fund and the nature and extent of the security
afforded thereby for the payment of this Bond, reference is made
to that P,esolution.
This Bond does not constitute a debt or indebtedness of.
the County of Pitkin within the meaning of any constitutional or
statutory limitation or provision.
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It is hereby certified and recited that all acts and
things required to be done and conditions and things required to
exist precedent to and in the issuance of this Bond to render the
same lawful and valid, have happened, been properly done and
performed, and did exist in regular and due time, from and manner
as required by law.
For the payment of this Bond and the interest thereon,
the County of Pitkin pledges the exercise of all its lawful
corporate powers.
IN WITNESS WHEREOF, the Board of Commissioners of
the County of Pitkin, State of Colorado, has caused this Bond
to be signed with the facsimile signature of. its Chairman,
countersigned with the facsimile signature of its County Trea-
surer, sealed with a facsimile of its corporate seal, and attest-
ed by the manual signature of its County Clerk, and has caused
the interest coupons attached hereto to be executed with the
facsimile signature of its Chairman, as of the 1st day of Octo-
ber, 1976.
THE COUNTY OF PITRIN
STATE OF COLORADO
(FACSIMILE) (Facsimile Signature)
( S E A L ) By_ (Do Not Sign)
Chairman
Board of County Commissioners
ATTEST:
(Manual Signature)
(Do Not Sign)
County Clerk COUNTERSIGNED:
(Facsimile Signature)
(Do Not Sign)
County Treasurer
(Form of Interest Coupon}
No.
April,
On the lst day of October, 19____, unless the Bond to
which this coupon is attached has been called for prior redemp-
tion, the County of Pitkin, State of Colorado, will pay to
bearer the amount shown hereon in lawful money of the United
States of America, at United Bank of Denver National Association,
Denver, Colorado, from and out of the funds specified in the
Bond to which this coupon appertains, but not otherwise, being
interest then due on its Airport Refunding and Improvement
Revenue Bond, Series 1976, dated October 1, 1976, bearing
No.
(Facsimile Signature}
_ (Do Not Sign)
Chairman
Board of County Commissioners
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Section 3. Delivery of Bonds. Said Bonds shall be
issued and delivered to the Purchaser thereof upon receipt of the
agreed purchase price for said issue, together with the amount of
the interest having accrued thereon, if any, prior to said is-
suance and delivery. The issuance of said Bonds by the County
shall constitute a warranty by and on behalf of the County for the
benefit of each and every holder of any of said Bonds, that the
same have been issued for a valuable consideration in full con-
formity with law.
Section 4: Disposition of Bond Proceeds - General.
The proceeds derived from the issuance of said Bonds shall be
used exclusively for the purposes, hereinabove set forth, for
which purposes said Bonds are issued, PROVIDED, HOWEVER, that
the proceeds thereof may be temporarily invested, or reinvested,
pending such use, in securities or obligations which are Lawful
and proper investments of such County. It is herebv covenanted
and agreed that the temporary investment or reinvestment of
the Bond proceeds, shall be of such nature and extent, and for
such period or periods, that the Bonds of the County shall not be
or become "arbitrage bonds" within the meaning of Section 103(d)
of the Internal Revenue Code, and pertinent regulations, and such
proceeds, when so invested or reinvested, shall be subject to the
limitations and restrictions of said Section 103(d), as the same
now exists or may Later be amended, and shall further be subject
to any applicable regulations of the Internal Revenue Service.
Neither the purchaser of said Bonds, nor any
subsequent holder of any of them, shall be in any way responsible
for the application or disposal of the proceeds of said Bonds
by the County, or any of its officers or employees.
Section 5. Disposition of Bond Proceeds - Refunding -
Other Monies. Immediately upon the issuance and delivery of
the Bonds, and receipt of the proceeds thereof by the County,
$1,000,000 of the said Bond proceeds shall be transferred to
United Bank of Denver national Association, Denver, Colorado,
the Paying Agent for the 1975 Bonds, and deposited in the County
of Pitkin, Airport System Revenue Warrant Sinking Fund. Said
$1,000,000 of Bond proceeds shall thereupon be held by said
Bank in such Fund, and shall, on or prior to the 1st day of
December, 1976, be used solely for the purpose of redeeming,
paying, discharging and cancelling the 1975 Bonds as to the
principal amount due. The interest accruing and becoming due and
payable on said 1975 Bonds shall be paid on such date from other
monies then on deposit in said Fund and pledged to such purpose.
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To the extent, if any, that sufficient monies, other than Bond
proceeds, to pay, in full, the said interest, are not on deposit
in said Fund and available to pay such interest, the County
shall, prior to the issuance and delivery of the Bonds, deposit
such additional monies into said Fund as may be necessary to
make up and elir;inate such deficiency, from any legally available
funds and monies of the County.
Section 6. Disposition of Previously Existing Funds
and Accounts. Pursuant to the Resolution authorizing the 1975
Bonds, the following Funds were created: the "Construction Fund,
New Airport Terminal" (hereinafter referred to as the "1975
Construction Fund"), the "County of Pitkin, Airport System Gross
Income Fund" (hereinafter referred to as the "1975 Gross Income
Fund"), and the "County of Pitkin, Airport System Revenue War-
rants Sinking Fund" (hereinafter referred to as the "1975 Sinking
Fund"). At or after the time at which the Bonds herein authorized
are issued and delivered, moneys then remaining in said Funds
shall be disbursed, and the Funds continued or terminated, as
hereinafter set forth:
(a) 1975 Construction Fund. The creation and
continued existence of the 1975 Construction Fund, as provided
in Resolution 75-42, is hereby ratified and reaffirmed, and
said 1975 Construction Fund shall be maintained, managed, used
and disbursed in strict compliance with said Resolution No. 75-42
as originally covenanted and agreed by the County.
(b) 1975 Gross Income Fund. Immediately upon
the adoption of this Resolution, any transfers of moneys from the
1975 Gross Income Fund into other funds required in order to
strictly comply with Resolution 75.42 shall be made. Upon the
issuance and delivery of the Bonds herein authorized, all re-
maining moneys in said 1975 Gross Income Fund shall be tran-
sferred to and deposited in the 1976 Gross Income Fund herein-
after created, and the 1975 Gross Income Fund and all accounts
thereof shall be terminated.
(c) 1975 Sinking Fund. On or prior to December
1, 1976, from the moneys then on hand and being held in the 1975
Sinking Fund, including the appropriate portion of the proceeds
of the Bonds herein authorized, the County shall pay in full and
discharge all of the 1975 Bonds upon their presentment for
payment, together with all interest having accrued on said 1975
Bonds through their redemption date. Any and all moneys in said
1975 Sinking Fund in excess of the amount .necessary to pay in
full and discharge the 1975 Bonds and the interest thereon having
accrued to said redemption date, shall be used, disbursed and
expended only in the following manner and order:
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(i) First, for the payment of all costs and expenses
incurred preliminary or incident to the authorization,
sale, issuance and delivery of the Bonds herein autho~:-
ized, including, but not being limited to, costs and
expenses of printing, distribution and delivery, fees
and expenses of bond counsel and financial consultants;
and bond discounts, if _any, of the underwriter; and
(ii) Second, any and all moneys remaining after dis-
bursements required or permitted by item (i), above,
within the 1 975 Sinking Fund, and any moneys thereafter
accruing or which would have accrued to said 1975
Sinking Fund (except for its termination as herein
provided), shall be transferred to and deposited in
the 1976 Gross Income Fund authorized and created by
this Resolution, and shall thereafter be disbursed as
hereinafter provided for moneys in said 1976 Gross
Income Fund. Upon the accomplishment of the above
transfer and deposit, the 1975 Sinking Fund shall be
terminated.
The amounts necessary to accomplish the above purposes
and payments are hereby appropriated from the specified funds
and revenues for such purposes.
Section 7. Disposition of Bond Proceeds - Land Acqui-
sition Fund. In addition to the other funds and accounts herein
created, there is hereby created and established a separate
special fund to be known as the "County of Pitkin, Airport Land
Acquisition Fund" (hereinfter referred to as the "Acquisition
Fund"), and the County hereby covenants and agrees to maintain
manage, use and disburse said Fund and the monies therein in
strict accordance .with the terms, conditions and provisions
herein set forth. Said Acquisition Fund shall be held on deposit
with and disbursed by and from a bank or trust company to be
designated by resolution of the Board. Immediately upon the
issuance and delivery of the Bonds herein authorized, $200,000
of the Bond proceeds shall be deposited in the Acquisition Fund,
and all of said monies and such Fund are hereby irrevocably
pledged for the following purposes, and shall be used, disbursed
and expended only in the following manner and order:
(a) FIRST, said proceeds are hereby pledged to, and
shall be used, expended and disbursed solely and exclusively for,
the payment of the costs and expenses of acquiring approximately
210 acres of land adjacent to the existing Airport to be used
for Airport purposes, and necessary incidentals and appurtenances
to said acquisition, and not otherwise; and
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(b} SECOND, in the event any moneys remain in the
Acquisition Fund after the items required by subsection (a) of
this Section have been paid in full, then and only in such event
such remaining moneys shall be transferred to and deposited in the
1976 Sinking Fund, and thereafter used, applied and disbursed only
for the purposes of said Fund.
Section $. Payment of_ Principal and Interest. The
principal of and interest on said Bonds, except as hereinafter
specifically provided otherwise, shall be payable solely from
and out of the revenues derived and to be derived by the County
from the ownership and operation of its Pitkin County Airport,
as specified in this Resolution, but the term "Airport" as herein
used, shall include not only the facilities and properties cur-
rently comprising the County Airport Facility, and all related
airport facilities, and those to be acquired with a part of the
proceeds of the Bonds at the present time, all as more fully
described in Exhibit "A" hereto attached, but also all additions
and betterments thereto and improvements and extensions of the
Pitkin County Airport and facilities hereafter constructed or
acquired by the County within Pitkin County.
Section 9. Covenant to Establish and Maintain Rates
Amounts. The Board of Commissioners of the County hereby cove-
nants that it will establish, maintain and enforce rates and
charges for use of the Airport and any portion thereof sufficient
to insure payment of the costs of the efficient and economical
operation and maintenance of said Airport, and the payments of
principal of and interest on all Bonds herein authorized, promptly
as the same become due. In addition, said rates and charges
shall always be maintained at a level at least sufficient, after
deduction of amounts necessary to pay operation and maintenance
expenses, and the reserve provided for such purposes, to produce
not less than 125 of the annual principal and interest re-
quirements of the Bonds herein authorized.
It shall be the duty of the County to establish maintain
and enforce such rates continuously until all of said Bonds
and the interest thereon have been fully paid and discharged.
In the event it becomes necessary to increase such rates and
charges pursuant to this covenant, the charges shall be developed
by the County in conjunction with the Financial Advisor, or
other nationally recognized municipal financial consultant.
Section 10. Gross Income Fund - Sinking Fund. Except
as hereinafter specified, all of the income and revenue of what-
ever kind or character, without deduction for any purpose or
purposes, derived, from whatever source, by the County by reason
of the acquisition, construction, ownership or existence of or
from the operation of the Pitkin County Airport (the "Gross
Revenue") shall be deposited in a special fund, to be held on
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deposit at and disbursed by and from a bank or trust company to
be designated by resolution of the Board, which fund, and the
accounts therein, are hereby created and established, to be known
as the "County of Pitkin, County Airport Gross Income Fund",
(herein called the "1976 Gross Income Fund") to be kept separate
and apart from all other funds and revenues of the County. The
total of all such income and revenue shall be known as and termed
the "Gross Revenue" of the Airport and such Gross Revenue and
Fund are hereby irrevocably pledged for only the following
purposes and shall be credited, used or disbursed only in the
following manner and order:
(a) Operating Expense Account. The Operating Expense
Account of the 1976 Gross Income Fund is hereby created
and shall be credited at least monthly with such
amounts as will be required to maintain to the credit
of said account a minimum balance equal to two (2)
months' cost of operating and maintaining and ordinary
current repair of the Airport, or the portion thereof
then in operation, plus an additional amount equal to
the cost of operation, maintenance and ordinary repairs
cif the Airport for the current month, to be applied to
payment of said costs, said monthly costs to be
based in each case upon one-twelfth (1/12) of the
operating costs set forth in the annual budget of
the Airport far the current fiscal year.
(b) Airport Refunding and Improvement Revenue Bond
Sinkin Fund. From the amounts remaining in the
1976 Gross Income Fund there shall be withdrawn and
deposited at least monthly into a separate special
fund, which fund is hereby created and established, to
be known as the "County of Pitkin, Airport Refunding
and Improvement Revenue Bond Sinking Fund" (herein
called the "1976 Sinking Fund'°) and which fund shall be
held on deposit at and disbursed by a bank or trust
company to be designated by resolution of the Board,
such amounts as are necessary to meet the requirements
set forth therein as items (b) (i) and (b) (ii) . Monies
deposited into said 1976 .Sinking Fund shall be used
solely for the purpose of paying the principal of and
interest on the Bonds herein authorized, as the same
shall mature or accrue, respectively, or for the
reserve for such purposes herein provided, and to that
end said Bonds and the interest thereon shall be and
constitute a first and prior lien upon said 1976
Sinking Fund, all of the monies herein required to be
placed in said Fund and any additional "Net Revenue" of
the Airport. All Gross Revenue of the Airport less
only the amounts required to be credited, from time to
time to the Operating Expense Account pursuant to item
(a), above, shall be known as and termed the "Net
Revenue" of the Airport.
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(i) Principal and Interest Account. There shall
be withdrawn from the 1976 Gross Income Fund at least
monthly and deposited into the 1976 Sinking Fund, for
credit to the Principal and Interest Account of said
1976 Sinking Fund not less than one-sixth (1/6) of the
interest becoming due on all Parity Bonds (as herein-
after defined) on the next semi-annual interest payment
date for each issue of said Parity Bonds, plus not less
than one-twelfth (1/12) of amount required to pay the
principal amount of all Outstanding Bonds maturing
within the twelve (12) months following each such
deposit. In the event that an initial deposit or
initial deposits occur less than six (6) months prior
to a semi-annual interest payment date or dates, or
less than twelve (12) months prior to an annual prin-
cipal payment date or dates, such deposit or deposits
shall be proportionally increased.
(ii) Principal and Interest Reserve Account.
There shall be withdrawn from the 1976 Gross Income
Fund (and not from the proceeds of the Bonds herein
authorized) the amount of $60,000, at or prior to the
issuance and delivery of said Bonds, and the aforesaid
amount shall be deposited in the 1976 Sinking Fund for
credit to the Principal and Interest Reserve Account
(the "Reserve Account") of said 1976 Sinking Fund. In
addition, commencing January 1, 1977, there shall be
withdrawn from the Gross Income Fund at least monthly
and deposited in the 1976 Sinking Fund for credit to
the Reserve Account, the amount of $1,000. Said
deposits shall continue until the sum of $120,000 (the
"Minimum Reserve") is on deposit to the credit of said
Reserve Account. In the event that the amount on
deposit in said Reserve Account shall thereafter fall
below the Minimum Reserve, monthly deposits in at least
the amount of $1,000 shall resume and continue until
the Minimum Reserve is therein on deposit. Moneys on
deposit in said Reserve Account may be used for the
payment of principal of and/or interest on Parity Bonds
only, and shall be so used only in the event that there
are insufficient moneys in the Principal and Interest
Account to meet such principal and interest payments
promptly when due. Monies in the Reserve Fund may be
invested in properly insured certificates of deposit,
or in direct obligations of the United States Govern-
ment or in obligations or securities of any agency or
instrumentality thereof, and the interest from any such
investments shall be considered as income and revenue
of the Airport and handled accordingly.
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Upon the issuance of any Proposed Bonds, as herein
provided, all payments to the 1976 Sinking Fund, and the Accounts
thereof, will be increased in such amounts as may be necessary
to assure the prompt payment when due of all Parity Bonds and
the Proposed Bonds, and, in the case of the Reserve Account,
the Minimum Reserve shall be increased to an amount equal to
the aggregate average annual principal and interest requirements
for the then outstanding Parity Bonds and the Proposed Bonds,
an immediate additional deposit of not less than fifty percent
(50%) of the average annual principal and interest requirements
on the Proposed Bonds shall be made to the Reserve Account, and
additional monthly deposits to the Reserve Account shall be made
in such amounts as will assure accumulation in said Account of
the increased Minimum Reserve within five (5) years from the date
of issuance of the Proposed Bonds.
(c) Renewal and Replacement Account. From the amounts
remaining in the 1976 Gross Income Fund, the Renewal
and Replacement Account of said 1976 Gross Income Fund
shall be credited at least monthly, with the amount of
$2,000; provided, however, that at any time when, and
so long as, the amount held to the credit of said
Account equals or exceeds $240,000, no further credits
need to be made to such Account. In the event the
amount held to the credit of said Account shall there-
after fall below $240,000, such monthly deposits shall
resume and continue until said amount is therein
held.
In the event that moneys in the 1976 Sinking
Fund are at any time insufficient to make the required
payments of principal of and interest on all then
outstanding Parity Bonds, promptly when due, sufficient
moneys shall be transferred from the Renewal and
Replacement Fund to cure such deficiency.
(d) Remaining Gross Income Fund Balances. Any balance
remaining in the 1976 Gross Income Fund after providing
for the aforementioned deposits and credits may be
accumulated to pay or used to pay costs of additional
acquisitions or capital construction of the remaining
uncompleted portions of the Airport or, if the Airport
is complete and no extensions or improvements thereto
are then needed, as determined by the Board, then
said balance may be transferred to the 1976 Sinking
Fund and used for any one or more of the purposes
therein provided, or may be used for any other lawful
.purpose.
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The amounts necessary to accomplish the purposes herein-
above designated are hereby appropriated from the specified
funds and revenues for those purposes, and said amounts for each
year shall also be included in the annual budget and appropriation
resolutions to be passed and adopted by the Board of Commissioners
of the County in each year.
Section 11. Additional Parit Lien Bonds. In addition
to the Bonds herein authorized and any bonds hereafter issued
pursuant to the provisions of this Resolution having a lien on a
parity therewith (which are herein referred to in aggregate
as the "Parity Bonds"), the County may issue additional bonds
with a lien on a parity therewith (hereinafter referred to as
the "Proposed Bonds") to pay for constructing or acquiring addi-
tions, extensions and improvements to the Airport. Such groposed
Bonds may be issued only after meeting the following requirements:
(a) A Certified Public Accountant, licensed to
practice and practicing in the State of Colorado,
shall have certified that Net Revenues of the
Airport during the twelve (12) complete calendar
months immediately preceeding the date of issuance
of the Proposed Bonds shall have been not less than
- 125 of the total amount which would be required to
be deposited in the Principal and Interest Account
in a.ny succeeding fiscal year to pay principal of
and interest on the then outstanding Parity Bonds
and the principal of and interest on the Proposed
Bonds, if issued as proposed, plus 1000 of the
maximum amount which would be required to be
deposited in the Reserve Account in any succeeding
fiscal year; or
(b) The Financial Advisor, or other nationally
recognized municipal financial consultant, shall
have certified that the average annual net revenues
reasonably estimated to be derived from the new
facilities to be constructed or acquired with the
proceeds of the Proposed Bonds, if issued, during
the 60 months immediately succeeding the month in
which all or any part of said new facilities are
estimated to be placed in operation, plus the net
revenues reasonably estimated to be derived from
the then existing Airport during the twelve (12)
complete calendar months immediately succeeding the
month in which the Proposed Bonds are to be de-
livered to the purchaser thereof, will be not less
than 125 of the maximum amounts which would be
required to be deposited in the Principal and
Interest Account in any succeeding fiscal year to
pay the principal a.nd interest on the then out-
standinq Parity Bonds and on the Proposed ?fonds, if
issued as proposed; or
l~ _
(c) In the event the Proposed Bonds are to be used
to acquire all or part of an existing, operating
and revenue producing Airport facility, such
Certified Public Accountant shall have cert-
ified that the net revenues derived from the
Airport during the 12 complete calendar months
immediately preceding the date of delivery of
the Proposed Bonds, plus the net revenues reason-
ably estimated, on a pro forma projection of
revenues based on revenues earned by such new
facilities being acquired, during the 12 complete
calendar months immediately succeeding the month
in which Proposed Bonds are delivered will be not
less than 150 of the maximum amounts required to
be deposited in the Principal and Interest Account
in any succeeding fiscal year to pay principal of
and interest on the outstanding Parity Bonds and on
the Proposed Bonds.
In the event that the Board shall adopt and place into
effect a new schedule of rates and charges for the Airport, in the
instances of such Certified Public Accountant certificate under
(b) or (c)~ above, it shall be assumed that such new schedule was
in effect during the period used for required computations except
that estimated net revenues shall be adjusted to reflect not more
than 125 of the previous rates and charges.
Nothing herein contained shall preclude the issuance
of additional bonds payable from the Net Revenue of the Airport,
but having a lien and claim subordinate and inferior to the lien
and claim of the then outstanding Parity Bonds, so long as the
County is current in all payments and in compliance with all
covenants relating to the then outstanding Parity Bonds.
Section 12. Additional General Covenants and Agree-
ments. The County hereby further irrevocably covenants and
agrees with each and every holder of the Bonds, issued under the
provisions of this Resolution, that so long as any of said Bonds
remain outstanding:
(a) It will continue to operate, maintain and manage
the Airport in an efficient and economical manner.
(b) That proper books of record and account will be
kept by the County, separate and apart from all other records and
accounts, showing complete and correct entries of all transactions
relating to the Airport, which books and accounts shall he avail-
able at all reasonable times to the holders of any of the Bonds or
any authorized agents of the Bond holders.
(c) That it will, within ninety (90) days following
the close of each fiscal year, have an audit made of the books
and accounts by an independent firm of Certified Public Accoun-
tants. Each such audit shall include a detailed statement of the
- 18 -
income and expenditures of the Airport, a balance sheet, an
analysis of all funds created in this Resolution setting out
deposits and disbursements and fiscal year-end balances, and the
accountants' comments regarding the manner in which the County has
carried out the requirements of this Resolution and other informa-
tion.
(d) It will, through appropriate action of the Board,
establish, maintain and enforce the schedule of rates and charges
for use of said Airport to insure the efficient and economical
operation and maintenance thereof, the payments of the principal
of and interest on all then outstanding Parity Bonds promptly as
the same become due, anal the reserves, accumulations and main-
tenance of the funds provided herein. In the event that such
Airport revenues at any time should not be sufficient to meet such
payments, the County shall increase its rates and charges to such
an extent as to insure the payments and accumulations required by
the provisions of this Resolution.
(e) It will not sell or alienate any of the property
constituting any part or all of said Airport in any manner or to
any extent which might reduce the security provided for the
payment of -the Bonds herein authorized, but the County may sell
any portion of such property which shall have been replaced by
other similar property of_ at least equal value, or which shall
cease to be necessary for the efficient operation of said Airport,
provided, however, that in the event of any sales or sales where
the aggregate consideration exceeds the sum of $1,000.00, such
consideration shall be paid into the Sinking Fund and shall be
used and disbursed for the purposes of said Fund.
(f) It will provide no service or use of the Airport
except by contract, will promptly render bills for all services
or uses furnished and use all legal means to assure prompt payment
thereof.
(g) At least once each year it will furnish the ori-
ginal Purchaser of said Bonds a copy of the audit, and related
documents herein required, for the fiscal year of said Airport
immediately preceding each statement.
(h) It will carry workmen's compensation, public
liability and such other forms of insurance on insurable Airport
property as would ordinarily be carried by entities having similar
properties of equal value, such insurance being in such amounts as
will protect said Airport and its operation.
(i) That it will not permit free use or service of
the Airport to be supplied by the County or any department thereof
to any person, firm, or corporation, public or private, or to any
public agency, including the County.
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Section 12. Declarations and Fundings of the Board
of Commissioners. The Board of Commissioners of the County
having be
pertinent
declare:
n fully informed of and having considered all the
facts and circumstances, does hereby determine and
That the issuance of said Series 1976 Bonds, and
all procedures undertaken incident thereto, are in full compli-
ance and conformity with all applicable requirements, provisions
and limitations prescribed by t e Constitution and Laws of the
State of Colorado thereunto enabling, specifically including
Colorado Revised Statutes 1973, Title 30, Article 20, Part 3, and
Title 11, Article 54.
Section 13. Authorization and Direction to Officers.
That the officers of the County and the members of the Board
of Commissioners are hereby authorized and directed to take all
other actions necessary or appropriate to effectuate the provi-
sions of this Resolution, including, but not being limited to,
the execution of such certificates and affidavits as may rea-
sonably be required by the Purchaser of said Bonds.
Section 14. Costs and Expenses. All costs and ex-
penses incurred in connection with the authorization, sale,
issuance and payment of the Bonds herein authorized shall be paid
exclusively from the proceeds of said Bonds or from the revenue
of said Airport, and in no event shall any of such Costs or
expenses, or the principal of or interest on said Bonds be paid
out of or charged to the general funds or tax levies of the
County.
Section 15. Sale of Bonds. That the County of Pitkin,
Airport Refunding and Improvement Revenue Bonds, Series 1976,
of said County, dated October 1, 1976, in the principal amount
of $1,200,000, bearing interest at the specific rates hereinabove
set forth, at a price of par and accrued interest to date of
delivery, less a discount of 2.00 of principal, and upon the
terms and conditions herein set forth are hereby sold and awarded
to E. F. Hutton & Company, Inc., 1700 Broadway, of Denver,
Denver and shall be delivered to said Purchaser upon receipt of
the agreed purchase price.
Section 16. Ratification and Approval of Prior Action.
That all actions heretofore taken by the officers of the County
and the members of the Board of Commissioners not inconsistent
with the provisions of this Resolution relating to the authoriza-
tion, sale, issuance and delivery of said Bonds, be and the same
are hereby ratified, approved and confirmed.
Section 17. Severability. That if any one or more
sections or parts of this Resolution shall be adjudged unenforce-
able or invalid, such judgment shall not affect, impair or
invalidate the remaining provisions of this Resolution, it being
the intention that the various provisions hereof are severable.
Section 18. Re Baler. All Resolutions or parts
thereof in conflict with this Resolution are hereby repealed.
- 20 -
Section 19. Resolution Irrepealable. After said
Bonds are issued, this Resolution shall be and remain irrepealable
until said Bonds and the interest thereon shall have been fully
paid, satisfied and discharged.
ADOPTED AND APPROVED This -^;'~~~~day of September, 1976.
__- -~.
~:
Chairman r j
Board of'County Commissioners
( S E A L )
ATTEST.
~_
f~ „ Geunty Cler
..~
i.
... '' f
' td \_~ ~ _
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(Attach executed copy of Agreement for Purchase and Sale of Bonds)
- 22 -
~~ !
C _, ~,
fr. . '.~~a{.. ' i _ "~
,~, ~
' `C~airman~ '
Board of County Commissio~i'~,~~s Mme'..
~ B' E A~L
ATTEST:
,~ ~ .
County Clerk ~
It was then moved by Commissioner (,J _~~~~,.~.~,~
and seconded by Commissioner __ ,~ ~ that all
rules of this Board which might prevent, unle s suspended, the
final passage and adoption of this Resolution at this meeting,
be and the same are hereby suspended.
The a.uestion being upon the adoption of said motion
and the suspension of the rules, the roll was called with the
following result:
Those voting AYE:
Commissioners: Joseph E. Edwards, Jr.
' Michael J. Kinsley
Dwight K. Shellman
Those voting NAY: /~,p LLD
Those Absent : V1,6-y~,,,.~_
3 members of the Board of County Commissioners
having voted in favor of said motion, the presiding officer
declared said motion carried and the rules suspended.
Commissioner __ ~ ~Q jl ~~_ then moved
that aid Resolution be passed and adopted as read. Commissioner
\ seconded the motion.
Thuestion being u on the assn e and ado tion of
P P 9 P
said Resolution, the roll was called with the following result:
Those voting AYE:
Commissioners: Joseph E. Edwards, Jr.
Michael J. Kinsley
Dwight K. Shellman
Those voting NAY: y~~.
Those Absent:
The presiding officer thereupon declared that a majority
of all the Commissioners elected having voted in favor thereof,
the said motion was carried and the said Resolution duly passed
and adopted.
After consideration of other matters, the meeting
was adjourned.
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STATE OF COLORADO )
ss.
COUNTY OF PITKIN )
V U~le ~~he
I, ~---~ T^'~^~~^^, ~- County Clerk for the Board
of Commissioners of the County of Pitkin, State of Colorado, do
hereby certify that the foregoing pages numbered 1 to 23, inclu-
sive, constitute a full and correct copy of the record of proceed-
ings of the Board of County Commissioners of said County, taken at
a ~~~ meeting thereof, held on the 2~ day of September,
1976, so far as said minutes relate to a Resolution, a copy
of which is therein set forth; that said copy of said Resolution
contained in said minutes is a full, true and correct copy of
the original of said Resolution, as adopted by the Board of
County Commissioners at said meeting; that said original Resolu-
tion has been duly signed and approved by the presiding officer of
the Board of County Commissioners and myself, as Deputy County
Clerk, and sealed with the corporate seal of said County, and
recorded in the book of Resolution of said County kept for that
purpose in my office.
I further certify that the Chairman and a~1„3 members
of the Board of County Commissioners were present at said meeting
and that ~_ members of said Board voted on the passage of
said Resolution as ir. said minutes set forth.
IN 6~7ITNESS WHEREOF, I have hereunto set my hard, and
the seal of said County at Aspen, Colorado, this 2.~ ~ay of
Septem.~er`, 1976.
4 ~
Lle~trt~County Clerk
., .
..... ~ ,l
..7 ~ 1
- 24 -