C153664 Contract

• Contract/PO #: C153664
• Contractor Name: Fort Lupton, City of & Fort Lupton Water Utility Enterprise
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: HB 93-1273
• Loan Projects - Doc Type: Contract Documents

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Berthoud, Fort Lupton, Fort Morgan, Old Town Superior, and Wiggins,
and the Towns of Erie and Hudson, Colorado to enable their
participation in the Project if the Colorado Water Conservation
Board determines, in its sole discretion, that said project and the
participation of these entities is technically and financially
feasible, that financing of the Project through the Colorado Water
and Power Development Authority is not available,
and that appropriate repayment terms can be establiShed with each
entity; and

WHEREAS, at a regular meeting of the COlorado Water
Conservation Board held in Denver, Colorado on November 9,1993, the
Board approved a resolution which revised the terms of the loan to
an interest rate of 2% for a period of 40 years; and

WHEREAS, the total cost for the Borrower to participate in the
Project has been estimated by the District to be $6,369,000; and

WHEREAS, based on the availability, pursuant to HB 93-1273,
of the sum of $7,050,000 to entities eligible thereunder, and based
on the fact that of the entities eligible, only the Towns of Erie
and Hudson and the City of Fort Lupton have requested loans from
the Colorado Water Conservation Board, it has been determined that
a loan in the amount of $4,233,000 is available toward the total
cost of the Borrower's participation in the Project; and

WHEREAS, by letter dated November 2, 1993, the Colorado Water
and Power Development Authority determined that it is not available
as an additional source of funds to the Borrower for participation
in the Project. This letter is attached to this contract as
Appendix D; and

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WHEREAS, pursuant to 99 37-45.1-101 et sea. and 31-35-401 et
~, C.R.S., the Borrower has authority to contract to borrow
money provided that a resolution has been duly adopted by its City
Council and by the governing body for the Enterprise authorizing
repayment of the loan to the State according to the terms of this
Contract; and

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WHEREAS, the State understands that the repayment of the funds
loaned, including interest thereon, will come from revenues pledged
for the repayment thereof from water user charges or fees and that
this obligation does not constitute a debt of the Borrower within
the meaning of any constitutioQal or statutory limitations; and

WHEREAS, it appears to th~ parties that with the creation of
a security interest in the revenues and the Borrower's interest in
the Allotment Contract pledged herein, and the additional terms and
conditions provided herein, the flow of revenue to repay the
obligation is reasonably secur~.

NOW, THEREFORE, in consid~ration of the mutual and dependant
covenants herein contained, it is agreed by the parties hereto as
follows:

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