PROJC02294 ‎(2)‎

• Contract/PO #: C153396
• 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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Ci ty Clerk
Ordinance 1990-3 2 CWCB
Conservation Board; and
WHEREAS, pursuant to Section 37-6U-120 C1) C.R.S. C1987), the
Colorado Water Conservation Board is required *_o have ownership,
tal~:e a sufficient security interest or impose other obligations
as will assure repayment of Contract C1533E~2 and Contract
C153396.
WHEREAS, Colorado water Conservation Board is willing to release
its claim to the system should the City promise to pledge and
agree to use as security the City's sales ta:~c revenues and the
City's portion ^f flesa County sales tax collections in the event
the City defaults in its payments to Colorado Water Conservation
Hoard pursuant to Contract C1533E32 and Contract C153396 in an
amount sufficient to satisfy the requirements therr.oE; and
WHEREAS, by letter dated the 7th day of December, 1988, *he law
firm ^f Young and )-{ocl~:ensmith P.C. c~„t m~nPd `:hat the City has
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the obi 1 ity *_o pledge and ustJ i ~°;~, r~~a1~'u~~ ax revenues as security
and need not conduct an r.lectio~;'~~r~`;°~ ,~~ *.o ar_.complish same; and
WHEREAS, pursuant t^ E~.21 oF~t ~~`~~,t~,~-!}~~~ity Charter, the
City may, by ordinance, ~ ~ ~ c~~~4~:. ~~'s mar'_r~ payable from
zevenues other th n ~ _'' ~r= =~ T =~~r~ s inclu
a p. operty~a_. ~. hc_ ~_ securltie de,
but are not limited to, those payablt~ (yarn revenue derived from
sales tai:LS; and
WHEREAS, the City wishes to promise t^ pledge and agree to use
its sa.Les ta:~ rE,venur~~-. ~i~s ~-~ecurity Far repa~~ment should the City
deEfiult in lt9 j~r:iyrnent obligations to Colorado W~~tPr Conservation
Hoard riursuant t;~ Can*_ract '~' 1.S33Flc' and Contract 0153396.
THEREFORE, BE IT ORDAINED 6Y THE FRUITA THE CITY CQlJNCIL
Section _1_. To assure repaym~:nt of Contract C1533E~2 and Contract
L'1533J6, the City hereby promises to pledge ~tnd agrees to use as
security its sales ta:~ revenues and its portion of I'1esa County
sales tax collections for the benefit of the Colorado Water
Conservation Board, sub,]ect to existing prior general obli~~`ion
bond commitments, in thr=~ event the City d~:fault in any payment
obligations it has awincy to the Colorado Water Conservation 3oard
pursuant to Contract CL533t~2 ar Contract C15339G.
Section 2. The City covenants to not use its sales tax revenues
or its portion of I`lesa County s~~lr:s tai: revenues to sr~cure
payment of any obligation, e:~:cept exlr~t.tnQ nSliJations ~~ecurr~d by
sdle~ ta:; revr-~nuf~~, which would supcrct.ed the City'- promise t^
pledge and aQrer:ment to use its sales ta:~ revenues in an amount
sufficient t^ secure annual paymr~nt ^bligations to Colorado Water
Conserv~ition Board in ca ,e oL defau.Lt. This ordinance shall
constitute a binrlinp srcurity aprNemF~nt bt~twnnn tF~c~ City and rho
Colaracio Water Cnnsr~rvation f~o~ird.
Section 3. TFre f1t~c~nr of the City of Fruity is hr~rr~hy zuthorized
_.. _ _
t^ e';f_~cuter Amr:ririment N1 to Contract C1`:i:.~_lfl? ,.ind f1mN~c!mc3nt It .L to