|
<br />these evaluations, the STATE determined the PROJECT to be technically and financially
<br />feasible.
<br />
<br />I. At its January 29-30, 1997 meeting, the CWCB approved a loan to the CITY and the
<br />BORROWER in the amount up to Two Million Dollars ($2,000,000), at an interest rate of
<br />4.75% per annum for a term of ten (10) years, to finance PROJECT costs.
<br />
<br />J. Pursuant to HB 98-1189, Section 1 (1 )(a), the Colorado General Assembly authorized
<br />CWCB to loan to the CITY and the BORROWER $2,000,000 for the PROJECT from the
<br />Colorado Water Conservation Board Construction Fund pursuant to S 37-60-122(1)(b),
<br />C.R.S.
<br />
<br />K. In 1998, the CITY applied to the STATE for an additional loan of $3,000,000 to be used for
<br />the PROJECT.
<br />
<br />L. At its November 24, 1998 meeting, the CWCB approved an additional loan to the CITY
<br />and the BORROWER in the amount up to Three Million Dollars ($3,000,000), at an interest
<br />rate of 4.25% per annum for a term of ten (10) years, to finance PROJECT costs.
<br />
<br />M. Pursuant to SB 99-173, Section 3, the Colorado General Assembly authorized CWCB to
<br />increase the loan to the CITY and the BORROWER by $3,000,000 for a total loan of
<br />$5,000,000, hereinafter referred to as AUTHORIZED LOAN AMOUNT, for the PROJECT from
<br />the Colorado Water Conservation Board Construction Fund pursuant to S 37-60-
<br />122(1 )(b), C.R.S.
<br />
<br />N. The STATE understands that the repayment of the funds loaned, including interest
<br />thereon, will come from revenues pledged for the repayment thereoffrom water system
<br />revenues and that this obligation does not constitute a debt of the CITY within the
<br />meaning of any constitutional or statutory limitations.
<br />
<br />O. The CITY issued Taxable General Obligation Water Refunding Bonds (Series 1994),
<br />dated January 1, 1994 in the aggregate principal amount of $14,585,000, hereinafter
<br />referred to as 1994 SERIES BONDS, which have a lien on the water system revenues
<br />pledged hereunder on a parity with the CWCB's lien under this contract.
<br />
<br />P. The STATE now desires, by this contract, to loan money to the BORROWER for this
<br />PROJECT in the amount of Five Million Dollars ($5,000,000) at an aggregate interest rate
<br />of 4.45% per annum for a term of ten (10) years, upon mutually agreeable terms and
<br />conditions, subject to the availability of funding for that purpose.
<br />
<br />NOW THEREFORE, in consideration of the'. mutual and dependent covenants
<br />contained herein, the parties agree as follows:
<br />
<br />A. The CITY and the BORROWER agree as follows:
<br />
<br />1. Construction Fund Program Procedures. The following items are procedures the CITY
<br />or the BORROWER shall follow during the construction phase of the PROJECT.
<br />
<br />a. The CITY or the BORROWER shall employ an engineer, registered in the State of
<br />Colorado, hereinafter referred to as the CONSULTANT, to prepare plans and
<br />specifications for the PROJECT.
<br />
<br />City of Loveland and City of Loveland,
<br />Cole-rsdo, Water Enterprise
<br />
<br />Page2of15
<br />
|