C150004 Contract

• Contract/PO #: C150004
• Contractor Name: Fort Morgan, City of & Fort Morgan Water Works and Distribution Enterprise
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Bill Number: HB98-1189
• Loan Projects - Doc Type: Contract Documents

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. ORDINANCE NO. 884-W

AN ORDINANCE AUTIIORIZING THE EXECUTION AND DELIVERY OF A LOAN
CONTRACT BETWEEN THE STATE OF COLORADO FOR THE USE AND BENEFIT OF
THE DEPARTMENT OF NATURAL RESOURCES, COLORADO WATER
CONSERVATION BOARD, AND THE CITY OF FORT MORGAN, COLORADO, AND
THE CITY OF FORT MORGAN, COLORADO, WATER WORKS AND DISTRIBUTION
ENTERPRISE SETTING FORTII THE TERMS AND PROVISIONS OF A LOAN IN THE
PRINCIPAL AMOUNT OF $8,000,000.

WHEREAS, pursuant to a resolution passed, approved and adopted by the Council of
the City of Fort Morgan, Colorado (the "City"), on November 2,1993, the City has established
the City of Fort Morgan, Colorado, Water Works and Distribution Enterprise (the "Enterprise")
as an enterprise of the City within the meaning of art. X, ~ 20 of the Colorado Constitution;
and

WHEREAS, pursuant to Ordinance No. 788 the City has authorized the Enterprise to
have and exercise the following powers: to hold meetings concurrently with regular or special
meetings of the City Council, to adopt ordinances in the manner in which City ordinances may
be adopted, to issue revenue bonds in the manner in which City revenue bonds may be issued
without voter approval in advance, to pledge any revenues of the Enterprise to the payment of
such revenue bonds and to pay such revenue bonds therefrom, to enter into contracts relating to
the Enterprise in the manner in which City contracts may be entered into, to make
representations, warranties and covenants on behalf of the City relating to the Enterprise and to
bind the City to perform any obligation relating to the Enterprise other than any multiplefiscal
year direct or indirect debt or other financial obligation whatever without adequate present cash
reserves pledged irrevocably and held for payments in all future years; and

WHEREAS, the City, on behalf of the Enterprise, has made application to the State of
Colorado Water Conservation Board (the "State") for a loan in the amount of $8,000,000, the
proceeds of which are to be used for the redemption of a portion of the Enterprise's Water
Revenue Bonds, Series 1997, dated December 16, 1997, in the aggregate principal amount of
$3 1,000,000 (the "Prior Bonds"), which were issued to finance the Enterprise's participation in
the Southern Water Supply Project of the Northern Colorado Water Conservancy District; and

WHEREAS, the State has approved a loan not to exceed $8,000,000 to enable the
Enterprise to redeem a portion of the Prior Bonds.

BE IT ORDAINED BY THE BOARD OF THE CITY OF FORT MORGAN,
COLORADO, WATER WORKS AND DISTRIBUTION ENTERPRISE:

1. The forms of the Loan Contract, the Promissory Note and the Security
Agreement required by the State as security for repayment of borrowed funds and any changes
thereto as may be necessary in the opinion of the attorney and the bond counsel for the
Enterprise to effectuate the intentions of the parties or to comply with the provisions of
applicable law are hereby approved.

Appendix A(2) to Loan Contract C150004