CT2017-917 Contract

• Contract/PO #: CT2017-917
• Contractor Name: Lamar, City of
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Contract Documents

BORROWER:CITY OF LAMAR, A HOME RULE AGENCY NAME: COLORADO WATER
MUNICIPALITY, ACTING BY AND THROUGH ITS CONSERVATION BOARD/PDAA
WATER ACTIVITY ENTERPRISE CONTRACT TYPE: LOAN/PUBLIC
REQUESTED LOAN AMOUNT$100,000 CWCB CMS: 83645/CORE: CT2017-917
LOAN SERVICE FEE $1,000
LOAN AMOUNT$101,000
LOAN CONTRACT
(LOAN CONTRACT-OSC WAIVER#160)
THIS CONTRACT, made between the State of Colorado for the use and benefit of the
Department of Natural Resources, Colorado Water Conservation Board ("CWCB" or
"STATE"), and the City of Lamar, 102 East Parmenter Street, Lamar, Colorado, 81052, a
home rule municipality, acting by and through its Water Activity Enterprise ("BORROWER").
FACTUAL RECITALS
1. CWCB authority exists in the law, and funds have been budgeted, appropriated and
otherwise made available and a sufficient unencumbered balance thereof remains
available for encumbering and subsequent payment of this CONTRACT; and
2. Required approval, clearance, and coordination have been accomplished from and with
appropriate agencies; and
3. On September 17, 2015 CWCB approved a loan request, from the BORROWER, for the
Repurposing of Wells 12 and 13 (PROJECT) to convert two existing potable wells for non-
potable municipal irrigation use and construct a pipeline connection. The total cost of the
PROJECT is $400,000. The BORROWER was approved for a $161,625 grant (CTGG1 2017-211)
by the Arkansas Basin Roundtable from the Water Supply Reserve Account (WSRA). The total
loan amount of $101,000 which includes a one percent (1%) loan origination fee of $1,000 is
payable over 10 years at an interest rate of 1.95%; and
4. The PROJECT SUMMARY, attached as APPENDIX 1 and incorporated herein, contains
BORROWER Information (Section 1), the PROJECT Description (Section 2), CWCB's
authority for making this loan (Section 3), and CWCB Approval and Legislative
Authorization which identifies the amount of the loan and the terms of repayment
(Section 4); and
5. The CWCB now desires, by this CONTRACT, to loan money to the BORROWER for this
PROJECT upon mutually agreeable terms and conditions; and
THEREFORE, in consideration of the mutual and dependent covenants contained
herein, the parties agree as follows:
A. LOAN PROVISIONS
1. Loan Origination Fee. The amount of the loan (LOAN AMOUNT) shall include (1)
the amount of the funds loaned by the CWCB to the BORROWER for the PROJECT
and (2) a loan origination fee of one percent (1%) of the PROJECT amount. In the
event that the BORROWER does not use the full LOAN AMOUNT authorized, the
parties shall amend this CONTRACT or exercise an OPTION LETTER (as outlined in
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