|
<br />r. .
<br />
<br />CITY and by the governing body of the BORROWER authorizing repayment of the loan to the STATE
<br />according to the terms of the contract.
<br />
<br />8. The CITY applied to the STATE for an emergency loan to be used for repairs to the CITY'S existing raw
<br />water intake structure, which was damaged by high spring runoff in 1995, and to the outlet valve of
<br />the CITY'S raw water reservoir, which has failed and caused the reservoir to drain, resulting in a large
<br />sinkhole, hereinafter collectively referred to as the PROJECT,
<br />
<br />9, The STATE has reviewed a feasibility report compiled by Richard p, Arber Associates, Inc" and Jim
<br />White of the City of Idaho Springs, which is incorporated herein by this reference, and, based upon
<br />the feasibility report, the STATE determined the PROJECT to be technically and financially feasible,
<br />
<br />10. At its November 7,1995 and May 14,1996 meetings, the CWCB determined that flood damage to the
<br />CITY'S raw water intake structure and the failure of the outlet valve and existence of a large sinkhole in
<br />the CITY'S reservoir qualify the CITY and the BORROWER for an emergency loan, which is necessary to
<br />avoid unreasonable risk of injury to human health or well-being, Further,.~~e CWCB determined that
<br />these emergency conditions are not the result of negligence .in the 9pe,iBtion or maintenance of the
<br />infrastructure and that the viability of the PROJECT is. ~ot 9~npetit"tiPon further appropriations or
<br />loans, The CWCB approved an emergency loan !SUttle em and the BORROWER in the amount of
<br />One Hundred Thirty Thousand Dollars ($130;000) to finance the costs of the PROJECT (or to refinance
<br />the costs of qualifying emergencyMpairs already completed), at an interest rate of 4,75% per annum
<br />for a term of three (3) years, with interest payments only due in years one and two and the total loan
<br />amount due at the conclusion of the three years.
<br />
<br />11, The CITY and the BORROWER acknowledge that this loan contract does not in any way obligate the
<br />STATE to make additional loans to the CITY and the BORROWER,
<br />
<br />12, The STATE understands that the repayment of the funds loaned, including interest thereon, will come
<br />from revenues pledged for the repayment thereof from water system revenues and that this obligation
<br />does not constitute a debt of the CITY within the meaning of any constitutional or statutory limitations,
<br />
<br />13, The parties recognize and understand that said water system revenues of the CITY have also been
<br />pledged for the payment of the CITY'S Water and Sewer Revenue Refunding Bonds Series 1990 and
<br />for payments required by the CITY'S 1996 Government Agency Bond and Loan Agreement with the
<br />Colorado Water Resources and Power Development Authority,
<br />
<br />14, The STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT upon
<br />mutually agreeable terms and conditions, subject to the availability of funding for that purpose,
<br />
<br />NOW THEREFORE, in consideration of the mutual and dependent covenants contained herein,
<br />the parties agree as follows:
<br />
<br />A, The BORROWER agrees as follows:
<br />
<br />1, Construction Fund Program procedures. The following items are procedures the BORROWER shall
<br />follow during the construction phase of the PROJECT,
<br />
<br />a, The BORROWER shall employ an engineer, registered in the State of Colorado, hereinafter referred
<br />to as the CONSULTANT, to prepare plans and specifications for the PROJECT,
<br />
<br />City of Idaho Springs and
<br />City of Idaho Springs, Colorado. Water Enterprise
<br />
<br />Page 2 of 14
<br />
|