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

'-=-:, ;~:

ORDINANCE 1990-05

AN ORDINANCE AnENDING ORDINANCE 1990-0S PROVIDING FOR
THE CONTINGENT PLEDGING OF SALES TAX REVENUES TO BE USED TO PAY
OBLIGATIONS OF THE CITY IN FAVOR OF THE COLORADO WATER
CONSERVATION BOARD

WHEREAS, the Fruita City Council passed and adopted Ordinance
1990-03 on narch 26, 1990, concerning the pledging of future
sales tax revenues to the Colorado Water Conserv~tion Board in
case of default by the City of Fruita on its payments to the
Colorado Water Conservation Board pursuant to Contract #C153382
and Contract #C153396.

WHEREAS, Ordinance 1990-03 is an Attachment
the above noted Contracts betueen the City
State of Colorado.

to
of

an Amendment
Fruita and

to
the

WHEREAS, the Colorado Attorney Generals Office has revieued the
Ordinance and has raised objection to language in the Ordinance
uherein the City 'promises' to pledge its sales tax revenues in
case of default by the City on its payment obligations.

NOW, THEREFORE, BE IT
Section 1 and Section 2
as folIous: (Deletions
capital letters.)

ORDAINED BY THE FRUITA CITY COUNCIL that
of Ordinance 1990-03 be amended to read
are lined through. Additions are in

Section 1: To assure repayment of Contract #C153382 and Contract
#C153396, the City hereby pr;~ises te ~leag6 PLEDGES and agrees
to use as security its sales tax revenues and its portion of nesa
County sales tax collections for the benefit of the Colorado
Water Conservation Board, subject to existing prior general
obligation bond commitments, in the event the City defaults in
any payment obligations it has owing to the Colorado Water
Conservation Board pursuant to Contract #C153382 or Contract
#C153396.

Section 2: The City covenants to not use its sales tax revenues
or its portion of nesa County sales tax revenues to secure
payment of any obligation, e~cept existing obligations secured by
sales tax revenues, which wo~ld superceed the City's plo~iwe ~v
pledge and agreement to us@ its sales tax revenues in an amount
sufficient to secure annual payment obligations to Colorado Water
Conservation Board in case of default. This ordinance shall
constitute a binding security agreement between the City and the
Colorado Water Conservation 80ard.

PASSED ')JlNp
~2Jd_

ADOPTE~ TH~ FRUITA CITY COUNCIL THIS
DAY 01'--_..., k{f/--------_____, 1990
I, ~'t O:_Fp~~u't ,
-- ~- j -~----

ayor

,rr-15 ";(/g

ATTEST: "

[
J/J<<:~:. Lc!-!}7~1-/'