PROJ00064

• Contract/PO #: C153567
• Contractor Name: Grand Junction, City of
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Bill Number: SB 89-85
• Loan Projects - Doc Type: Contract Documents

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section 2. Securitv. As security for the loan to be made by
the state, the city of Grand Junction, Colorado, will execute
a warranty deed within thirty (30) days of the first advance
of funds from the state which will convey to the state an un-
divided fifty percent (50%) interest in 5866 feet of 24 inch
diameter Plastic Irrigation Pipe, 100PSI, SDR 41, inclusive
of all intake structures, incidentals, and appurtances, the
pipe to be laid between the North Fork of Kannah Creek exist-
ing diversion structure and Purdy Mesa and Juniata Reser-
voirs.

section 3. Assurance. The City will provide revenues in the
City water fund to insure that the North Fork Diversion Pipe-
line is maintained and operated in good working order, as se-
curity to the state and the city for their interests in the
pipeline until, at least, the total loan obligation to the
Colorado Water Conservation Board is discharged. In addition
the City's obligation for repayment will not terminate upon
loss of the pipeline as a result of fire or other hazards.

section 4. utilitv Rates. The city of Grand Junction peri-
odically sets rates for the operation and expansion of its
water utility operation. The city agrees that it will main-
tain rates sufficient to pay the annual indebtedness on the
loan and to maintain the pipeline in good working order as
outlined in section 3. These revenues are established and
set aside in the Water Fund and are separate and apart from
city General Fund revenues. The portion of the Fund balance
of the Water Fund, not to exceed the annual principal and in-
terest payment of this note, will be restricted for the sole
purpose of discharging the City's loan obligation and the
State of Colorado will have conveyed to it a security inter-
est in these restricted revenues to secure repayment of the
debt.

section 5. Default. In the event of default in the repayment
of the debt to the state and upon written notice from the
state, the city, pursuant to its Charter, will take all nec-
essary actions to levy any additional assessments to cure the
default.

section 6. Sale and Transfer. The city agrees that it will
not sell, convey, assign, grant, transfer, mortgage, pledge,
encumber, or otherwise dispose of the project or any portion
there of so long as the annual installment required by the
note remain unpaid, without the prior written occurrence of
the state.

section 7. Repealer. All acts, orders, resolutions, ordi-
nances, or parts thereof, of the city that are inconsistent
or in conflict with this resolution are hereby repealed to