PROJ00350 - Laserfiche WebLink

Home Browse Search

,. (...1 o J and debt reserves, and to assure repayment of the project loan to the State as provided herein. 10. Pursuant to its city charter and to state statues, the Contractor shall take all necessary actions consistent therewith to adopt an ordinance or resolution authorizing the Contractor to contract this loan debt, and to pay the indebtedness. Such ordinance or resolution shall be attached hereto as Exhibit E and included herein. The Contractor, through the Finance Director. shall furnish an affidavit confirming that the Contractor will reserve on the balance sheet of the water utility fund Two Hundred Thousand Dollars ($200.000) as retained earnings. reserved expressly and only as loan collateral for the McCall Lake loan. This affidavit is attached hereto as Exhibit G and made a part hereof. The above conditions must be performed by the Contractor prior to the State performance under this contract. 11. Pursuant to its city charter and to State statues, the Contractor. through its city council. shall take all necessary actions consistent therewith to fix utility rates to raise sufficient funds to pay this contract loan debt in a timely manner and as required by the terms and conditions herein to assure repayment of the project loan to the State. In the event that the assessment(s) levied by the Contractor. or the revenues resulting therefrom. are or become insufficient to assure repayment of the State as required by the terms and conditions herein. then the Contractor. upon written notice thereof from the State. shall immediately take all necessary action consistent with its city charter. inclUding but not limited to the levy of taxes. to raise sufficient revenue to assure repayment of the project loan to the State. In this respect Exhibits F'. H. and I. which show the intent on the Contractor's part to fulfill the obligation~ of this contract. are attached hereto and made a part hereof. 12. Provide the State with such periodic reports as. the State may require and permit periOdic inspections of its operations and accounts by a designated representative of the State. 13. Repay to the State the total principal sum of Two Hundred Seventeen Thousand Five Hundred Dollars ($217. 500), which includes the project loan amount and the Four Thousand Nine Hundred Seventy-Five Dollars ($4.975) feasibility report amount. together with interest at the rate of five percent (5'> per annum. said repayment to be made in constant annual installments of Twenty-Eight Thousand One Hundred Sixty-Six Dollars and Twenty-Nine Cents ($28.166.29) each, for ten (10) years. as shown in Exhibit C. attached hereto and incorporated by reference herein. which first installment shall be due and payable on the first day of the month next succeeding the month in which the State determines that the project has been substantially completed. and yearly thereafter until the entire principal sum shall have been paid. However, in the event the Contractor does not draw funds commencing on the date specified in paragraph D.l.a. below. the Obligation to repay shall be postponed for the same number of months as the Contractor delays in drawing funds. Said installment payments shall be made payable to the Colorado Water Conservation Board. payable at the offices of said Board in Denver. Colorado. 14. Obtain and maintain general fire and hazard insurance on the project in an amount not less than the outstanding amount of the loan made by the State to the Contractor until the Contractor has repaid the loan in full under the terms of paragraph B.13. above. The State shall be the sole insured of this policy. The outstanding loan amount payable to the State shall be reduced in the amount of any payments made to the State under this insurance coverage. If only a portion of the .e i of 10 Pages .