PROJ01923 ‎(2)‎

• Contract/PO #: C150126
• Contractor Name: Kremmling, Town of
• Contract Type: Loan
• Water District: 50
• County: Grand
• Loan Projects - Doc Type: Contract Documents

TOWN OF KREJ\1MLING
EMERGENCY ORDINANCE
ORDINANCE 484

AN ORDINANCE OF THE TOWN OF KREMMLING, COLORADO, ACTING BY AND
THROUGH ITS WATER ACTMTY ENTERPRISE, AUTHORIZING A LOAN FROM: THE
COLORADO WATER CONSERVATION BOARD FOR THE PURPOSE OF FINANCING,
IN PART, THE COSTS OF CONSTRUCTING AN ALTERNATIVE WATER SUPPLY
SYSTEM FOR THE TOWN; AUTHORIzING THE EXECUTION OF A PROMISSORY
NOTE TO EVIDENCE THE LOAN AND PROVIDING FOR THE PAYMENT OF THE NOTE
FROM THE OPERATION OF THE WATER ACTIVITY ENTERPRISE; MAKING CERTAIN
COVENANTS IN CONNECTION WITH THE LO~"AND PROVIDING DETAILS IN
CONNECTION THEREWITH.; AND DECLARING AN 'EMERGENCY IN CONNECTION
THEREWITH. ' " \' '.,'" " '
,. .

, .
WHEREAS, the Town of Kremmling;' :Gfand County, Colorado, is a, statutory
municipality of the State of Colorado, duly organized and operating under the constitution and
laws of the State (unless otherwise indicated, capitalized terms used in this preamble shall have
the meanings set forth in Section 1 of this Ordinance); ,and

WHEREAS, the Town is the owner and operator of a water utility (later defined. as the
"System") and the System has been established by the Town as a "water activity enterprise;'
within the meaning of the Water Activity Law; and

WHEREAS; in calendar year 2003 the System was, and in calendar year 2004 the System
continues to be operated as, a government owned business authorized to issue its own revenue
bonds and receiving under 1 0% of annual revenue in grants from all State and local governments
combined, and the Board of Trustees hereby deterrrlines and reaffirms that the System is an
enterprise within the meaning of Article X, Section 20 of the Colorado Constitution; and

WHEREAS, the Board has heretofore determined arid does hereby determine that it is
necessary to construct the Project, currently estimated to cost approximately $2,447,750, for the
benefit of the Town and, its inhabitants, the costs of which are to be funded from grants, legally
available Town moneys and a loan to the Town; 'and

WHEREAS, the Town has' received a Loan Contract from the Colorado Water
Conservation Board, an agency of the State, for a loan in an amount up to $1,689,750 at an
interest rate of 4.25% per annum for a repayment term of30 years; and

WHEREAS, none of the members of the Board have any potential conflicting inh~rests in
connection with authorization for execution of the Loan Contract, or the issuance and delivery of
the Promissory Note, or the use of the proceeds thereof; and

WHEREAS, there has been presented to this meeting of the Board the form of the Loan
Contract and the Board desires to authorize the execution of the document, the issuance and
delivery of the Promissory Note, and the execution of any additional documentation which may
be related to such financing; ,

02-178969;2

Appendix 3 to Loan Contract C150126