TC Res. No. 1998-18RESOLUTION NO. 98-18
A RESOLUTION APPROVING AN AGREEMENT AND PLAN
FOR DISSOLUTION OF AVON METROPOLITAN DISTRICT
WHEREAS, an Agreement and Plan for Dissolution between Avon Metropolitan
District and the Town of Avon has been presented to the Town Council and made a part of the
minutes of this meeting; and
WHEREAS, it is determined that the aforesaid Agreement and Plan for
Dissolution is in the best interests of the Town and its residents;
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of
Avon as follows:
1. The Agreement and Plan for Dissolution between Avon Metropolitan District
and the Town of Avon is approved and the officers of the Town are authorized to execute it on
behalf of the Town.
2. The Town Attorney is authorized to file an entry of appearance on behalf of the
Town and to extend the support of the Town in connection with the petition for dissolution filed
by the District with the District Court of Eagle County.
PASSED AND ADOPTED at a regular meeting of the Town Council the 24th day
of February, 1998.
ATTEST:
0 a-,~ u-7-~~~
Mayo
I
L D"
Acting Town Clerk
AGREEMENT AND PLAN FOR DISSOLUTION
AVON METROPOLITAN DISTRICT
TOWN OF AVON
THIS AGREEMENT AND PLAN FOR DISSOLUTION is made the _ day of
1998, by and between the Avon Metropolitan District, a
quasi-municipal corporation and political subdivision of the State of Colorado
("District") and the Town of Avon, a municipal corporation and political subdivision of
the State of Colorado ("Town").
WHEREAS, District was organized pursuant to the provisions of Article-1, Title
32, C.R.S., to provide water services and fire protection service within the jurisdictional
boundaries of District; and
WHEREAS, Town is a home rule municipal corporation empowered by the
provisions of its Home Rule Charter and the provisions of Title 31, C.R.S., to provide
domestic water service and fire protection services to its inhabitants; and
WHEREAS, District's corporate boundaries he entirely within the boundaries of
Town; except for a subdivision known as McGrady Acres, which lies outside of the
Town but within the District, to which the Town does now, and commits in the future,
to provide water and fire protection services on the same terms and conditions as
properties within the Town; and
WHEREAS, Town has already received conveyance of all water service
facilities and fire protection facilities, and is directly or through contract with other
parties operating and maintaining the water system and fire protection facilities and
services; and
WHEREAS, District has previously expressed its willingness to convey all of its
interests in and to all of its real and personal property used in the provision of water
service or fire protection services, to Town to continue District's operation; and
WHEREAS, Town has previously expressed and continues to express its
willingness to acquire and receive all said real and personal property owned by District
so as to assume provision of water and fire protection services to the inhabitants of
District; and
WHEREAS, Town has previously expressed and continues to express its
willingness to assume all contractual obligations and rights of District relating to, the
provision of the water and fire protection services, with the exception of the General
Obligation Bonds currently existing and referenced herein, which will continue to be
paid by District property owners through a continuing assessment until paid in full; and
WHEREAS, the water and fire protection services provided by Town are
expected to be equal to or better than service which was or is being provided by
District.
NOW THEREFORE, District and Town agree as follows:
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1. This Agreement is subject to the review and approval of the District Court
in and for the County of Eagle, State of Colorado, Civil Action No. 2278
and the executory provisions hereof are subject to approval of the
proposed dissolution at an election, since District has outstanding
indebtedness. Therefore, the effective date of this Agreement shall be the
date upon which the election results approving the election are confirmed
by Order of the District Court pursuant to the provisions of Section 32-1-
704(3), CRS. The planned effective time and date of the dissolution are
12:00 midnight, May 31, 1998.
2. Conveyance of F=aly. District believes it has conveyed to Town all of
its property. In the event any property remains in District ownership,
District agrees to convey to Town by appropriate and properly executed
documents all rights, title and interest in and to all property owned by
District, whether real or personal, including but not limited to: water
lines, water storage tanks, treatment facilities, pumping facilities,
easements, rights-of-way, and fire protection buildings, trucks, equipment,
and any and all other real property owned by District; and also all
facilities or equipment appurtenant to the aforementioned property, real or
personal; together with all other property of every description owned by
District.
3. ss' enment of Rights. District hereby assigns, transfers and sets over to
Town each and all of District's rights, privileges, authorities and powers
provided in all of District's current contractual obligations related to the
provision of water and fire protection services, and maintenance of the
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facilities therefor; Town hereby assumes and accepts same, subject to the
terms and provisions of such contractual obligations. District further
delegates, confirms and assigns to Town all of District's rights and
obligations to provide services, including continued service to the
McGrady Acres subdivision, and District's rights and entitlement to
receive from customers of District all outstanding amounts due and
payable, and Town hereby assumes and accepts the same.
4. Provision for Bonded Indebtedness. The Parties mutually recognize
District has issued. a General Obligation Refunding and Improvement
Bond, dated December 1, 1990, in the original amount of Five Million
One Hundred Thirty-Five Thousand Dollars ($5,135,000), which. as of
January 1, 1998, had a balance due of Four Million Three Hundred Forty-
Five Thousand Dollars '($4,345,000). The Parties mutually agree that
District shall * continue in existence as a body politic and political
subdivision of the State for the sole purpose of securing payment in full of
the principal and interest of such existing bonded indebtedness. Town
further agrees that, upon appointment of the Town Council as the District
Board of Directors for the sole purposes stated herein, the Town Council
shall each year set such mill levies as is necessary to certify to the Board
of County Commissioners an amount of revenue to be raised which will
equal the sum necessary to pay in full the costs of annual payments of
principal and interest on the outstanding bonded indebtedness. Until
revised on an annual basis by the Town Council, the mill levy in existence
at the time of dissolution shall continue to be in effect.
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5. The Parties hereto mutually agree to cooperate with one another to take
such actions necessary to expedite dissolution of District. While Town
and District believe that Town has already assumed all rights and
obligations of District, any additional actions may be taken by the Town
Council on behalf of District to effect the purposes of this Agreement.
6. The terms and conditions set forth under this Agreement and Plan for
Dissolution shall be binding upon and inure to the benefit of the
successors and assigns of District and Town.
7. Every obligation assumed by or imposed by either party shall be
enforceable by any appropriate action, petition or proceeding at law or in
equity.
8. If the dissolution of District is not approved at election, then this
Agreement shall be null and void of any further force and effect upon
either party hereto.
9. This Agreement and Plan for Dissolution constitutes the entire Agreement
between the Parties hereto concerning the subject matter hereof except as
specifically supplemented by relevant statutory provisions.
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed on the day and year first above written.
AVON METROPOLITAN DISTRICT
By: -
President
ATTEST:
By:
Secretary
TOWN OF AVON
By:
ATTEST:
By:
Town Clerk
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STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
This Agreement and Plan for Dissolution was acknowledged before me this
day of 199_, by as President and
as Secretary of the Avon Metropolitan District.
Witness my hand and official seal.
Notary Public
My Commission expires:
STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
This Agreement and Plan for Dissolution was acknowledged before me this
day of 19931 by as -
and as Town Clerk of the
Town of Avon.
Witness my hand and official seal.
Notary Public
My Commission expires:
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