PROJC02145

• Contract/PO #: C153382
• Contractor Name: Fruita, City of
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Bill Number: SB 81-439
• Loan Projects - Doc Type: Contract Documents

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Ctty ci@rk
Ordinance 1990-3 2
Conservation Board; and
CWCB
WHEREAS, pursuant to Section 37-60-120 C1) C.R.S. C1967?, the
Colorado Water Conservation Soard is required to have ownership,
take a sufficient security interest or impose other obligations
as will assure repayment of Contract C1533E32 and Contract
C153396.
WHEREAS, Colorado
its claim to the
agree to use as sr
Gity's portion of
the City defaults
Board pursuant to
amount sufficient
Water Conservation Board is willing to release
system should the City promise to pledge and
=curity the City's sales tax revenues and the
r'lesa County sa1PS ta:; collections in the event
in its payments to Colorado Water Conservation
Contract C1533f32 and Contract C153396 in an
to satisfy the re~;uirements thereof'; and
WHEREAS, by letter dated the 7th day of Decemhr=r, 1988, the law
firm of Young and Hoc}~:ensrnith P . C . determ~ nPd *~hat the City has
the ability *_o pledge and use its sales to:; revenues as security
and need not conduct an r.lection in order r.o ar_.complish same; and
WHEREAS, pursuant to E~,21 of the Frusta the City Charter, tho
City may, by ordinance, t5sue sE~cur! ties mar'r. payable from
revenues other than property taxF~:;, These securities include,
but are not limited to, those p- ~~ "rom revt=_nue derived from
sales taxes; and
WHEREAS, the City wishes to promise to e e and ogres to use
its sales tax rFvenur:~; pis ~ t r ,p~ nt should thr~ City
def6ult in lt9 ha~,~rnerrt obli n o Dater Conservation
Board pursuant to Contract L. _. 3_ F32 and Contract C153:3~36.
THEREFORE BE IT ORDAINED FiY THE FRUITA THE CITY Cf?UNCIL
Section _1. To assure repayment of Contract C1533E~2 and Contract
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C1533J6, the City herehr~ promises to pledge and agrees *_o use as
security its sales tar revenues and its portion oP flesa County
sales tax. collections for the benefit of the Colorado Water
Conservation Board, subject to existing prior general obli~:r~`ian
bond commitments, >.n thr=~ event the City defaults in any payment
obligations it has owing to the Colorado 'alatec Conservation Board
pursuant to Contract C1~~33E12 or Lontract C15~3396.
Section 2. The City covenants to not use its sales tax revenues
or its portion of I'1esa County sales tai: revenues to st~cure
payment of any obligation, except exi~~ttng a5liQations securr.d by
sales ta:; revr.nuE~s, which would superceed the C:ty'~- promise to
pledge and agreement to use its sales tax revenues in an amount
sufficient to secure annual paymr~nt ^bligations t^ Colorado Water
Conservation Board in ca_,e of di/fault . This ordinance shall
constitute a binding sr~curity agreHmt~nt bc~twnnn tl-~r~ City and tho
Colorado Water Conservation E3odrd.
Section 3. The f1~iync nP 'the City of Fruity tom.; hr~rr~l~r~ authorized
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t^ e:;E~cute Amendment ~tl to Contract ['1~~:1_1f~? ,rod F~mNnc~.ment to to