C150004 Contract - Laserfiche WebLink

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~~, 4. CITY'S and BORROWER'S Indemnification Of The STATE, The CITY and the BORROWER shall, without expense or legal liability to the STATE, manage, operate, and maintain the PROJECT continuously in an efficient and economical manner. The CITY and the BORROWER agree, to the extent authorized by law, to indemnify and hold the STATE harmless from any liability incurred by the STATE as a result of the STATE'S interest in the PROJECT facilities and any other property identified in the Collateral provision of this contract. 5. CITY'S Liability Insurance, Upon execution of this contract and continuing until complete repayment of the loan is made to the STATE, the CITY shall maintain commercial general liability insurance with a company that is satisfactory to the STATE covering the management, operation, and. maintenance of the PROJECT with minimum limits of $1,000,000 combined single limit for each occurrence and $2,000,000 general aggregate, including products/completed operations and personal injury, Said general liability insurance shall name the STATE as additional insured. The CITY shall provide the STATE with a certificate of said insurance and an additional insured . endorsement, and shall provide the STATE with documentation of renewals of said insurance, The STATE will not disburse any loan funds without evidence of said insurance coverage. Throughout the life of this contract, the STATE reserves the right to increase the above amount of insurance so that said amounts at a minimum correspond to the amount established by the Colorado Govemmentallmmunity Act, now and as hereafter amended. If the CITY is a "public entity" within the meaning of the Colorado Governmental Immunity Act, CAS 24-10-101, et~, as amended ("AcF), the CITY shall at all times maintain such liability insurance, by commercial policy or self-insurance, as is necessary to meet its liabilities under the Act. Upon request by the STATE, the CiTY shall provide proof of such insurance. 6, CITY'S and BORROWER'S Authority To Contract. The CITY and the BORROWER warrant that both the City Council of the CITY and the goveming body of the BORROWER have complied with the CITY'S Charter and all statutory and other legal requirements and duly passed ordinances that constitute legislative measures of the CITY and the BORROWER and are irrepealable for the term of this loan contract, authorizing: a. The CITY and the BORROWER to enter into and comply with the applicable terms of this contract and the BORROWER to enter into and comply with the terms of the Promissory Note; and b. The CITY to establish and collect water user charges, rates and fees in amounts sufficient to repay the loan made to the BORROWER under this contract; and c. The BORROWER to make annual loan payments in accordance with the promissory note; and d. The BORROWER to pledge revenues from water user charges, rates and fees ("water system revenues") to repay this loan and to execute a Security Agreement to convey a security interest to the STATE in the pledged water system revenues; and e. The CITY to set aside sufficient water system revenues each year to pay the annual installment in a special account, separate and apart from other revenues of the CITY, in accordance with the Pledge of Revenues provisions of this contract; and f. The BORROWER to execute Security Agreements to convey security interests to the STATE in all revenues from any sale or lease of the CITY's/BoRROWER'S interest in the City of Fort Morgan, Colorado & Cily of Fort Morgan, Colorado, Water Works and Distribution Enterprise Page 4 of 13