C150340 Contract

• Contract/PO #: CT2015-056
• Contract/PO #: C150340
• Contractor Name: Ridgway, Town of
• Contract Type: Loan
• Water District: 68
• County: Ouray
• Loan Projects - Doc Type: Contract Documents

APPENDIX 3
WHEREAS, the Town Council the Town has received a Loan Contract (identified as
Contract No. C150340) from the Colorado Water Conservation Board, an agency of the State,
for a loan in an amount up to $606,000 at an interest rate of 3.0% per annum for a repayment
term of 30 years; and
WHEREAS, the Town's repayment obligations under the Loan Contract will be
evidenced by Promissory Note to be issued by the Town to the CWCB, which Note shall
constitute a special revenue obligation of the Town which is to be paid from the net revenues
(which are generally defined as all income and revenues directly or indirectly derived from the
operation of the water system utility less all reasonable and necessary current expenses for
operating, maintaining and repairing the water system utility) and, after consideration,the Town
Council has determined that the execution of the Loan Contract and the issuance of the
Promissory Note to the CWCB is to the best advantage of the Town; and
WHEREAS, voter approval in advance is not required under Article X, Section 20 of the
Colorado Constitution or pursuant to section 10-2(C) of the Town Charter for the execution of
the Loan Contract or the issuance of the Promissory Note;and
WHEREAS, the Town has outstanding multi-year obligations which are secured by the
Net Revenue and which generally consist of(i) a loan from the State of Colorado (for the benefit
of the Department of Natural Resources - Colorado Water Conservation Board) executed on or
about January 15, 1980 and identified as Contract No. C153321, (ii) an Energy and Mineral
Impact Assistance Program Loan from the State of Colorado (for the benefit of the Department
of Local Affairs) executed on or about June 29, 2006 and identified as Contract No.
FO6MSL5394, and (iii) a loan from the Colorado Water Resources and Power Development
Authority, represented by a Loan Agreement dated as of October 19, 2009 and a Governmental
Agency Bond (as defined below,the"Parity Lien Loans"); and
WHEREAS, the form of the Loan Contract and related appendices have been reviewed
by the Town staff and made available to the Town Council; and
WHEREAS, the Town Council desires to authorize the execution of the Loan Contract,
the issuance and delivery of the Promissory Note, and the execution of any additional
documentation which may be related to the financing; therefore,
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF RIDGWAY,COLORADO, as follows:
Section 1. Definitions. The following terms shall have the following meanings as used
in this Ordinance:
"Acting Authority" means the Town Charter, Title 11, Article 57, Part 2, C.R.S. and all
other laws of the State establishing the power of the Town to complete the financing
contemplated by this Ordinance.
"Capital Improvements" means the acquisition of land, easements, facilities and
equipment (other than ordinary repairs and replacements), and the construction or reconstruction
of improvements,betterments,and extensions, for use by, or in connection with, the System.
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