C153701 Contract

• Contract/PO #: C153701
• Contractor Name: Fort Morgan, City of & Fort Morgan Water Works and Distribution Enterprise
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: SB94-029
• Loan Projects - Doc Type: Contract Documents

ORDINANCE NO. 816-W

AN ORDINANCE AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN CONTRACT BETWEEN
THE STATE OF COLORADO FOR THE USE AND BENEFIT OF TIlE DEPARTMENT OF NATURAL
RESOURCES, COLORADO WATER CONSERVATION BOARD AND THE CITY OF FORT MORGAN,
COLORADO AND TIlE CITY OF FORT MORGAN, COLORADO WATER WORKS AND DISTRIBUTION
ENTERPRISE SETTING FORTH TIlE TERMS AND' PROVISIONS OF A LOAN IN PRINCIPAL
AMOUNT OF $5,500,000.

WHEREAS, pursuant to a resolution passed, approved and adopted by the
Council of the City of Fort Morgan, Colorado (hereinafter referred to as "the
city" or "Fort Morgan") on November 2, 1993, the City has established the City
o~ Fort Morgan, Colorado, Water Works and Distribution Enterprise (hereinafter
referred to as "the Enterprise") as an enterprise of the City withi~ the
me~ning of Art. X, 520 of the Colorado Constitution; and,

WHEREAS, the City of Fort Morgan, on behalf of the Enterprise has made
application to the State of Colorado Water Conservation Board, (hereinafter
referred to as "the State") for a loan in the amount of $5,500,000, the entire
proceeds of which are to be used to permit the City's Enterprise to
participate in the Southern Water Supply Project, (hereinafter referred to as
"the Project") of the Northern Colorado Water Conse;-vancy Oistrict; and,

WHEREAS, the State has approved a loan not to exceed $5,500,000 to help
pay for the cost of constructing the Project; and,

WHEREAS, pursuant to Ordinance No. 788, Fort Morgan has authorized'the
Enterprise to have and exercise the following powers in connection with the
undertaking and completion of the Project: 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 the 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 multiple-fiscal 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. Therefore:

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

1. The forms of the Loan Contract 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.

1

APPENDIX C