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' �l � �7 2 � � EXHIBIT C ORDINANCS NO. 2438 AN ORDINANCS OF THS CITY OF GRAND JUNCTION, COLORADO, AUTHORIZING TIIB CITY TO SNTSR INTO A CONTRACT FOR BORR0I4ING A PRINCIPAL SUM NOT TO 6XC66D $250,000 FROM THS COLORADO WATSR CONSSRVATION BOARD; ASSURING UTILITY RATBS TO PRODUC6 RfiVBNUSS SUFFICIBNT TO PAY THS CONTRACT LOAN; S6TTING ASIDB OF RSVSNUBS IN TAS WATSR FUND FOR THS ASPAYMBNT OF TH6 D6BT; AND PROYIDING A S6CURI4Y INTBRSST IN FAVOR OF TH6 STATS TO SSCUR6 THS RSPAYMBNT. WHBRBAS, the City of Grand Junction, Coloredo, wishes to construct the North Fork Divereion Pipeline, e water conveyance atructure from the North Fork of Rannah Creek to the Purdy Mesa and Juniete Reser- voirs; end MHBRfiAS, the project coate are scheduled to be paid froro a loan from the Colorado Water Conservation Board, a grant from the Colorado Depertment of Local Affairs, end City water fund revenues; and WA6RSAS, the loen from the Colorado Weter Conservetion Boerd will not exceed 50X of the project coets up to an amount not to exceed $250,000; and WHBRHAS, in order to acquire the seid loen from the Coloredo Water Conservation Board, the City of Grand Junction is required to sign e contract end promisaory note with the�orado Water Conservation Board end paes an ordinence implementi t rovieions of the contract end promissory note. NOW, THSRSFORS, BS IT 0 AINSD�Y� AB�I�TY COUNCIL OF TAB CITY OF GRAND JUNCTION: � � ',� y� Section 1. Authorizat T�e City of Grand Junction through ita elected representetivee and ppointed officera are authorized to enter into a Contract end Promissory Note with the Colorado Water Conserva- tion Boerd to contract for a principel sum of money not to exceed $250,000 for construction of the North Fork Divereion Pipeline end to repay to the State seid principal aum with interest at the rate of five percent (5X) per annum, said repeyment to be nade in conetant ennual inetellments for twenty-five (25) yeara. Said Contract end Promissory Note to be the complete integration of all understandings between the parties. The City Manager of the City of Grend Junction ie euthorized to sign the Contract and Note when loan calculations and contract terms ere finalized with the Stete of Colorado. Section 2. Securitv. Ae security for the loan to be mede by the Stete, the City of Crand Junction, Colorado, Nill execute e warranty deed within thirty (3Q) days of the first advance of funds from the Stete which will convey to the State en undivided fifty percent (50X) interest in 5866 feet of 24 inch diameter Plastic Irrigation Pipe, 100PSI, SDR 41, incluaive of ell inteke structures, incidentals, and eppurtenancea, the pipe to be leid between the North Fork of I{ennah Creek exiating diversion structure and Purdy Meae and Juniata Reaervoire. Section 3. Assurance The City will provide revenuea in the City water fund to ineure that the North Fork Diversion Pipeline ia mein- tained and opereted in good working order, es security to the State and the City for their interesta in the pipeline until, et least, the total loen obligation from the Colorado Weter Conservetion Board ia dis- charged. Section 4. Utility Ratea. The City of Grand Junction periodically sets retes for the operation and expeneion of its weter utility op- eration. The City agrees that it will maintain retea sufficient to pey the annual indebtedness on the loan and to maintain the pipeline in good working order ae outlined in Section 3. These revenues ere esteb- lished and set eaide in the Weter Fund and ere seperete end epert from City General Fund revenues. The portion of the Fund balance of the We- ter Fund, not to exceed the annual principal and interest payment of this note, will be restricted for the sole purpose of discherging the City's loan obligetion and the Stete of Coloredo will have conveyed to it a security intereet in these restricted revenues to secure repayment of the debt. EXHIBIT C