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WHEREAS,pursuant to Ordinance No.992 of the City,the water activity enterprise is authorized to issue
<br /> bonds, notes, or other obligations payable from the revenues derived or to be derived from the System, in
<br /> accordance with the Water Activity Law;and
<br /> WHEREAS, the City Council has determined, for the benefit of the City and its inhabitants, that it is
<br /> necessary to provide for the repurposing of Wells 12 and 13 to convert the two existing potable well for non-
<br /> potable municipal irrigation use and constructing a pipeline connection at an estimated cost of approximately
<br /> $400,000,$161,625 of which is to be paid from a grant by the Arkansas Basin Roundtable,$985,000 of which is
<br /> to be paid from a grant from the Colorado Department of Local Affairs and the balance of which is to be paid
<br /> from an approved loan from the Colorado Water Conservation Board;and
<br /> WHEREAS,the City Council the City has received the Loan Contract(identified as Contract No.CT2016-
<br /> 2003) from the Colorado Water Conservation Board, an agency of the State, for a loan in an amount up to
<br /> $101,000,at an interest rate of 1.95%per annum,for a repayment term of 10 years;and
<br /> WHEREAS,the City's repayment obligations under the Loan Contract will be evidenced by Promissory
<br /> Note to be issued by the City to the CWCB, which Note shall constitute a special revenue obligation of the City
<br /> which is to be paid from System Net Revenues and,after consideration,the City Council has determined that the
<br /> execution of the Loan Contract and the issuance of the Promissory Note to the CWCB is to the best advantage of
<br /> the City;and
<br /> WHEREAS, voter approval in advance is not required under Article X, Section 20 of the Colorado
<br /> Constitution or the City Charter for the execution of the Loan Contract or the issuance of the Promissory Note;
<br /> and
<br /> WHEREAS,the City has outstanding multi-year obligations which are secured by'the Net Revenue and
<br /> which generally consist of(i)Water Activity Revenue Refunding Bonds,Series 2009,dated June 10,2009,issued
<br /> in the amount of$1,670,000(ii)a loan from CWRPDA Drinking Water Revolving Fund, represented by a Loan
<br /> Agreement dated as of December 17, 2009 and a Governmental Agency Bond in the original amount of
<br /> $1,067,625, (iii) a loan from CWRPDA Drinking Water Revolving Fund - ARRA, represented by a Loan
<br /> Agreement dated as of December 19, 2009 and a Governmental Agency Bond in the original amount of
<br /> $3,952,375, (iv) a loan from CWRPDA Water Pollution Control Revolving Fund, represented by a Loan
<br /> Agreement dated as of May 27, 2010 and a Governmental Agency Bond in the original'ainQiuV of 2 000,000
<br /> and(v)a loan from CWCB under Loan Contract No. 150376, dated October 7, 20L nd'a Prom skorytl tote in
<br /> the principal amount of$792,850(as defined below,the"Parity Lien Obligations")ant3
<br /> WHEREAS,the form of the Loan Contract and related appendices hate ben?evievll �y
<br /> and made available to the City Council;and the i, staff
<br /> WHEREAS, the City Council desires to authorize the execution of the Loan to rac-;; ei�sdance and
<br /> delivery of the Promissory Note,and the execution of any additional documentation which nta be related
<br /> financing;therefore, to the
<br /> BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAMAR,COLORADO:
<br /> Definitions. The following terms shall have the following meanings as used in this Ordinance:
<br /> "Capital Improvements" means the acquisition of land, easements, facilities and equipment (other than
<br /> ordinary repairs and replacements), and the construction or reconstruction of improvements, betterments, and
<br /> extensions,for use by,or in connection with,the System.
<br /> "Charter"means the home rule Charter of the City.
<br /> "City"means the City of Lamar,Prowers County,Colorado.
<br /> "City Council"means the City Council of the City acting as the governing body of the Water Activity
<br /> Enterprise.
<br /> "C.R.S."means the Colorado Revised Statutes,as amended and supplemented as of the date hereof
<br /> "CWCB"means the Department ofNatural Resources,Colorado Water Conservation Board,an executive
<br /> branch agency of the State.
<br /> "CWRPDA"means the Colorado Water Resources and Power Development Authority, a body corporate
<br /> and political subdivision of the State.
<br /> "Enabling Law"means the City Charter,the Supplemental Public Securities Act,the Water Activity Law
<br /> and all other laws of the State establishing the power of the City to complete the financing contemplated by this
<br /> Ordinance. APPEINDIX 5
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