PROJ00130

• Contract/PO #: C153382
• Contractor Name: Fruita, City of
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Bill Number: SB 81-439
• Loan Projects - Doc Type: Contract Documents

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City Cleft< '

Ordinance 1990-3

2

CWCB

Conservation Board; and

WHEREAS, pursuant to Section
Colorado Water Conservatlon
take a sufflcient securlt~
as will assure repa~ment
C153396.

37-60-120 (1) C.R.S. (987). the
Board is required to have ownership.
lnterest or impose other obligations
of Contract C153382 Rnd Contract

WHEREAS. Colorado Water Conservation Board is willing to release
its claim to the s~stem should the City promise to pledge and
agree to use as securit~ the City's sales tnx revenues and the
Cit~'s portion of Mesa County sales tax collections in the event
the Cit~ defaults in its payments to Colorado Water Conservation
Board pursuant to Contract C153382 and Contract C153396 in an
amount sufflc1ent to satisf~ the requlrements thereof; Rnd

WHEREAS. b~ letter dated the 7th day of December. 1988. the law
firm of Young and Hockensmith P.C. determ1ned that the Clt~ has
the abil1t~ to pledge and use its sales tax revenues as securit~
and neEd not conduct an slectlon in order ~o accomplish same; and

WHEREAS. pursuant to 8.21 of the Frulta the City Charter, the
Cit~ ma~, b~ ordinance, lssue s8cur1tlBs mace pa~able from
revenues other than propert~ taxes. These securit1es lnclude,
but are not Ilmlted to. those pa~able from revenue derived from
sales taxes; and

WHEREAS, the Clt~ wishes to promise to pledge and agree to use
1ts sales tax revenues as securit~ for repa~ment should the Cit~
default 1n its payment obligations to ColorRdo WRter Conservation
Board pursuant to Contract [153382 and Contract C153396,

THEREFORE, BE IT ORDAINED BY THE FRUITA THE CITY COUNCIL

S'3,c_ti.or'l_1_" To assure repa~ment of Contract C153382 and Contract
C153396. the Cit~ hereby promises to pledge and agrees to use as
securit~ 1ts sales tax revenues and lts portion of Mesa Count~
sales tax collectlons for the benefit of the Colorado Water
Conservation 80ard, subject to exist1ng prlor general obligation
bond commitments, 1n the event the Clt~ defaults in an~ payment
obligations it has OWing to the Colorado Water Conservatlon Board
pursuant to Contract C153302 or Contract C153396.

S,ec::t,A.on..,..?.:.. The Ci t~ covenants to not use 1 t" sales tax revenues
or ltS portlon of Mesa County sales tax revenues to secure
pa~ment of any obligat1on, except eX1~tlng obl1gatlons secured by
sales tax revenues, WhlCh would superceed the C1t~'a promlse to
pledge and agreement to use its sales tax revenues ln an amount
suffic1ent to secure annual payment obligations to Colorado Water
Conservation Soard ln case of default. ThiS nrdinance shall
constitute a binding sBcurlt~ agreement betwRen the Cit~ and the
Colorado Water Conservation Board.

?8c::tion..3.." The Mil'.Jor of the C1 t~ of Frui tn i s hl~reh'.J nuthor i2'ed
to execute Amendment Al to Contract C1SJ3R2 and Amendment "1 to

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