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HomeMy Public PortalAboutTBP 1998-08-19 t. 0- ~ · . . TOWN OF FRASER "Icebox of the Nation" P.O. Box 120/153 Fraser Avenue Fraser, Colorado 80442 (970) 726-5491 FAX Line: (970) 726-5518 AUGUST 19, 1998, 7:30 p.m. TOWN BOARD AGENDA REGULAR MEETING 1. Roll Call 2. Approval of 8/5/98 minutes -3. ' ,Op~ ForuInc- " ,. 4. Public Hearings (none) , . S. Action Items .-, ,~ , , p-, a) An emergency ordinance authorizing the .issuance of sal~ ~d use tax ," bonds. ]-' ZIYi ' '.-" ," _ ,c_', _ ' : -_,_: b) An emergency ordinance authorizing the issuance of sales and use tax . -, boiuis. -t 280 . P;,.. _' " _ '" , c) An emergency ordinance regulating gradin& excavatioD,atld:fill. :-\rZ51 d) A resolution to set Bu&iness Development Fees e) Housing Authority appointee t). Granting Town staff authority to accept a bid in the amoUnt of from Morrow & Sons to complete the Muse Drive water line. 6. Discussion Items a) Maryvale request for water service on the Forest Meadows property 7. Staff Choice a) Re-setting a public hearing to consider a hratoriuJ;D. on development within the wellhead protection area I 0/':1- '18 , b) Planning Area 28 update c) Clayton subdivision improvement agreement update S. Board Choice Upcoming Meetings August 26th: Planning Commission regular meeting September 2nd: Town Board regular meeting September 9th: Planning Commission special meeting September 16th: Town Board regular meeting ýÿ ) t. . . TOWN OF FRASER "Icebox of the Nation" P.O. Box 120/153 Fraser Avenue Fraser, Colorado 80442 (970) 726-5491 FAX Une: (970) 726-5518 Manager's Briermg: August 17, 1998 Wednesday night's agenda is a "do over," with many of the same topics carried over from the last meeting. I'll get to an overview of the agenda in a bit, but first, lets talk about the last two weeks. In the last tWo weeks a front-end loader tipped, a police jeep crashed, and Vicky broke her wrist. " . Municipal governance must be dangerous. The staffmember involved in the front-end loader tipping is okay (as is the loader itself) ~d.our,' staff did most of the repair work. The jeep will be okay and the- other vehicle involved in the accident is being checked out (it was the C9P's filuIt). Vicky is on the mend. Unfortwlately (?); . none of the accidents merited repair work in' excess of our- insurance deductible. '. ~..\ ," ." In other and better news, the Fraser "old Timers" picnic was a rousing sucCess as many, many .' , people gathered yesterday to reminisce about :Fraser's good old days. .. " Moving right along, on Wednesday we'll "re-do" much of the last meeting beginning with a . workshop at 6:00. At the workshop, we'll discuss the "old" library building and the Chamber of, Commerce. Regarding the Chamber, there are two key questions that Catherine Ross and I have been discussing: What role does the Fraser Town Board expect the Chamber of Commerce to play in the community? and What role should the Chamber play in creating a successful community? Beyond the workshop, the regular meeting is self-explanatory. See you Wednesday! 74. ~fyut wltl ~~.. ýÿ .j \ . . . TOWN OF FRASER "Icebox of the Nation" P.O. Box 120/153 Fraser Avenue Fraser, Colorado 80442 (970) 726.5491 FAX Line: (970) 726-5518 TOWN BOARD WORKSHOP AUGUST 19, 1998,6:00 p.m. 1. Discussion regarding the "old" Fraser VaIley'Library building: 2. Discussion regarding the Chambetof Commerce. , "':" .. . . . \' , '. ýÿ . . ~ iI TOWN BOARD AUGUST 5, 1998 The regular meeting of the Board was called to order by Mayor Johnston at 7:30 p.m. Trustees present were Sanders, Soles, Swatzell, Klancke, l\tlcIntyre and Rantz. Staff present were Reid, Trotter, Winter and Stone. Rantz made a motion to approve the :Minutes of the 7/15/98 and 7/24/98 meeting as written, 2nd McIntyre, carried. Open Forum None CHAMBER UPDATE Catherine Ross gave an update of the July activities and reviewed events planned for Aug. and Sept. ALLEY VACATION This item was pulled from the agenda as the requesting party told staffhe was not prepared to come to town Board. K..C. Lukow owner adjacent to said alley made various comments against any consideration to vacate the alley. DISCUSSION ITEMS Board discussed the request from Matyvale to use the Forest Meadows water. Stan Cazier, . Leo Eisel and Ron McLaughlin reviewed the request with regards to existing water rights, build out and administration of the water rights, existing and Matyvale rights. Matter will come back to the Board on the 19th for some response to the request. PROPOSED EXCAVATION ORDINANCE Trotter presented a proposed Ordinance with regards to cut and fill on private property. Board discussed this at length. Trotter will made appropriate changes and bring the Ordinance to the next meeting for action. STAFF CHOICE Reid advised that the Town has a request from the Fire District to use town water to fill a 20,000 gal. fire retention tank for a subdivision in the County. Board tabled the request. Reid has met with Gary Cooper on the request for easements on the rest of the Safeway parcel. ýÿ . . . .. 1/ Reid advised that due to construction the Fishing pond access would be from the Barn Store parking lot except for traffic displaying handicap tags. They would be allowed to access through the Safeway construction site. Reid asked the Board to consider an expense of S1000 for additional studies in his field. the classes are on the weekends. Board approved this expenditure. Rantz set a hearing date of Aug. 19th at 8:00 p.rn. to consider placing a moratorium on building in a wen head protection area, 2nd McIntyre canied. The Board was given an update on PA 28. It appears it may take some time for the bank to be cut back, so Reid proposes that the Cemetely goes ahead with the SUlVey and related documents to :finish this project. Reid asked that the bronzing of the Statute discussion be tabled. Reid and Mayor Johnston discussed an appointment to the Housing Authority Board. They have talked to and recommend Don Smith to serve on the Board. Board asked that the decision be tabled until the next meeting. BOARD CHOICE McIntyre reviewed that the Land Conservancy is still trying to come up with an idea of how to preserve the Maryvale Meadow. There is grant money that may be available but the Town will have to commit money to the project. It is not known how much money would need to be committed. McIntyre would like the Board to consider how to get money for this project. . No further business, meeting adjourned at 11:00 p.m. '\ . . x ~ ~~ ORDINANCE NO. ~ AN ORDINANCE OF THE TOWN OF FRASER, COLORADO, AUTHORIZING THE ISSUANCE OF THE TOWN'S SALES AND USE TAX REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 1998, IN THE AGGREGATE PRINCIPAL AMOUNT OF $2,200,000, FOR THE PURPOSES SET FORTH IN THE BALLOT QUESTION AUTHORIZING THE BONDS; PRESCRIBING THE FORM OF THE BONDS~ PROVIDING FOR THE PAYMENT OF THE BONDS FROM THE TOWN'S SALES AND USE TAX REVENUES DEPOSITED IN THE CAPITAL IMPROVEMENT FUND AND OTHER SOURCES PLEDGED THEREFOR PURSUANT TO TIllS ORDINANCE~ PROVIDING OTHER DETAILS AND APPROVING OTHER DOCUMENTS IN CONNECTION WITH THE BONDS~ AMENDING ORDINANCE NO. 197 OF THE TOWN~ AND DECLARING AN EMERGENCY. WHEREAS, the Town of Fraser, Grand County, Colorado (the "Town"), is a statutory town and political subdivision of the State of Colorado, duly organized and operating under the constitution and laws of the State of Colorado~ and WHEREAS, pursuant to Ordinance Nos. 39,41,42,95, 100, 106, 116, 142, 1 7 and 237 of the Town duly adopted and approved by the Board of Trustees of the Town (the "B ard") and approved by election as required, the Town imposes a sales and use tax at a r te of 4% (collectively, the "Sales and Use Tax") and there has been established and create a capital improvement fund (the "Capital Improvement Fund") into which a portion of t~e moneys generated from the Sales and Use Tax are deposited~ and I WHEREAS, the Town is authorized by Title 29, Article 2, Part 1, COIoradr, Revised Statutes to issue revenue bonds payable from a capital improvement fund into which lall or any part of the revenues from the Sales and Use Tax are deposited, subject to ob~g voter approval of. ballot proposal authorizing such tax and capital improvement fund; and J WHEREAS, Article X, Section 20 of the Colorado Constitution provides hat voter approval in advance is required for the creation of any direct or indirect debt or oth multiple- fiscal year financial obligation whatsoever; and 1 WHEREAS, pursuant to an election held on April 7, 1998, the electors of the T I wn voted in favor of the following ballot question (the "Ballot Question"): i SHAlL THE TOWN OF FRASER DEBT BE INCREASED BY AN AMO~ NOT TO EXCEED $2,200,000, WITH A MAXIMUM REPAYMENT COST . F $4,100,000, (B{[f WITH NO INCREASE IN THE TOWN'S EXISTING S$ AND USE TAX), FOR THE PURPOSE OF CONSTRUCTING IMPROVING STREETS AND PROVIDING FOR STORM DRAINAqE, INCLUDING ALL NECESSARY OR INCIDENTAL COSTS RELATED 02-7062.02 . . THERETO; SUCH DEBT TO CONSIST OF SALES AND USE TAX REVENUE BONDS OR OTHER FINANCIAL OBLIGATIONS PAYAB~E FROM ALL OR A PORTION OF THE TOWN'S SALES AND USE TAX 11'0 BE DEPOSITED INTO THE SALES AND USE TAX CAPITiAL IMPROVEMENT FUND OF THE TOWN AND UTILIZED SOLELY TO I PROVIDE THE CAPITAL IMPROVEMENTS AUTHORIZED HEREINJR FOR REPAYMENT OF THE BONDS; SUCH DEBT TO BE ISSUED, DA D AND SOLD IN MULTIPLE SERIES AT SUCH TIMES, AT SUCH PRIC~S (AT, ABOVE, OR BELOW PAR) AND CONTAINING SUCH TERMS, NPT INCONSISTENT HEREWITH, AS THE BOARD OF TRUSTEES ~ Y DETERMINE; SHALL SECTION 2, SECTION 3, AND SECTION 4 F ORDINANCE NO. 237 OF THE TOWN BE APPROVED, WIDCH SECTIO~S PROVIDE, AMONG OTHER TIllNGS, THAT THE BOARD OF TRUSTE S SHALL BE AUTHORIZED TO DETERMINE THE AMOUNT OF SAL~ AND USE TAX REVENUE DEPOSITED INTO THE SALES AND USE T CAPITAL IMPROVEMENT FUND; AND SHALL ALL SALES AND ~SE TAX REVENUES DEPOSITED IN THE CAPITAL IMPROVEMENT ~ AND ANY EARNINGS FROM THE INVESTMENT OF THE PROCEEDS F I SUCH BONDS CONSTITUTE A VOTER-APPROVED REVENUE CHANGf? WHEREAS, Section 2, Section 3, and Section 4 of Ordinance No. 237 oflthe Town change the requirement that 20% of the Sales and Use Tax revenues be deposited to ~he Capital Improvement Fund and provide that the Board annually determine the amount of such r~enues to be deposited, provided, however, such amount cannot be less than the amount necesr to pay the principal of and interest on any outstanding sales tax revenue bonds when due; and I I WHEREAS, the Board hereby determines that it is in the best interests of the town, and the residents thereof, that there shall be issued sales and use tax revenue bonds in thr principal amount of $1,600,000 as authorized by the Ballot Question (the "Improvement Bondsf and that there shall be deposited to the Capital Improvement Fund an amount of the Sales an I Use Tax revenues sufficient to pay, when due, the debt service on the Improvement Bonds andi any other bonds payable from the Capital Improvement Fund; and I I WHEREAS, the Town has heretofore duly authorized, sold, issued, and delivJred to the purchasers thereof its Sales and Use Tax Revenue Refuiiding and Improvemt Bonds, Series 1992, dated October 15, 1992, originally issued in the aggregate principal ount of $1,145,000, and now outstanding in the aggregate principal amount of $1,025,000 (tpe "Series 1992 Bonds"); and I i I WHEREAS, the Series 1992 Bonds are secured by · pledge of 20% of the l reveoue collected by the Town from the Sales and Use Tax and, in order to secure the Series 1 92 Bonds on a parity with the Improvement Bonds, it necessary to amend the ordinance provid' g for the issuance of the Series 1992 Bonds to enhance the security of said bonds by pledging t amount from gross Sales and Use Tax revenues to the Capital Improvement Fund necessary 0 pay the debt service on the Series 1992 Bonds when due; and 02-7062.02 2 ýÿ . . WHEREAS, the Series 1992 Bonds maturing on and after June 1, 2003, are ~ubject to redemption prior to maturity, at the option of the Town, as a whole or in integral mpltiples of $5,000, in inverse order of maturity and by lot within any maturity, on June I, 2~02, upon payment of par, accrued interest, and a premium of one percent (1%) of the principal amount so redeemed; and ! i I WHEREAS, the principal of, premium if any, and interest on the Series 1992 Bonds are payable at Bank One, Colorado, N.A. (as successor to Affiliated National Bank-Dtnver), as paying agent; and I WHEREAS, the Series 1992 Bonds have not heretofore been refunded, nor h~ve any of the same been redeemed or otherwise paid, cancelled, or retired by the Town; and I I WHEREAS, the rate of interest on the Series 1992 Bonds ranges from 6.05% ito 7.30% and, due to limitations established in the federal tax code, a portion of the Series 19~2 Bonds currently cannot be advance refunded on a tax-exempt basis; and I I WHEREAS, the bonds issued for the purpose of refunding Town bonded indebF1 edness at a lower interest rate within the meaning of Article X, Section 20 of the Colorado Co titution, and may be issued without further voter approval; and I I WHEREAS, after extended discussions and consultation, it has been detennined by the Board that by refunding a portion of the Series 1992 Bonds, being bonds in principal ~ount of . I $525,000 (the "Refunded 1992 Bonds") as set forth in this Ordinance, the Board can rfluce the total principal and interest payable on the obligations represented by the Refunded 19~2 Bonds; and I WHEREAS, the Board hereby determines that it i. in the best interests of the Jown, and the residents thereof, that the Refunded 1992 Bonds shall be refunded and that for suc~ purpose there shall be issued refunding bonds in the total principal amount of $600,000 (the "fefunding Bonds") (the Improvement Bonds and the Refunding Bonds collectively referred ~o as the "Bonds"); and ! ! I WHEREAS, the net proceeds derived from the sale of the Refunding BOnd} shall be placed in the special fund and trust account established for the purpose only of p ying the principal of, premium if any, and interest on the Refunded 1992 Bonds as they becom due and payable, all as is more particularly hereinafter set forth the net proceeds of the Im~rovement Bonds shall be deposited into a project account and used for the purposes approved in fe Ballot Question; and I I WHEREAS, the Bonds shall be revenue obligations of the Town payable solelyl from the Capital Improvement Fund and the Bonds shall have an irrevocable and first lien on die Capital I Improvement Fund, but not necessarily an exclusive such lien; and I WHEREAS, the Board has been presented with a proposal in the form ot a Bond Purchase Agreement from George K. Baum & Company, of Denver, Colorado, to purrhase the I I 02-7062.02 3 i I ýÿ . . I . I I I Bonds and the Board has determined that the sale of the Bonds to the Underwriter is i in the best , I interests of the Town and the residents thereof; and I WHEREAS, none of the members of the Board have any potential conflicting ~terests in connection with the authorization, issuance, or sale of the Bonds, or the use of thf proceeds thereof; and I I WHEREAS, there has been presented to this meeting of the Board: (i) the treliminary Official Statement; (ii) the form of the Escrow Agreement; and (ill) the Bond Purchase ~greement I (all as defined hereafter); and I , I I WHEREAS, the Board desires to authorize the issuance and sale of the Bonrs and the execution of the foregoing documents; i NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEE$ OF THE TOWN OF FRASER, COLORADO: I I Section 1. Definitions. The following terms shall have the following meaningsl as used in this Ordinance: I ''Acf' means Part 1 of Article 2 of Title 29, C.RS., or any successor thereto. I "Ballot Question" means the Ballot Question approved by Town voters which ~s set forth and defined as such in the preambles hereto. I I ''BaJ1/C' means Bank One, Colorado, N.A., in Denver, Colorado, or its' subcessor, a national banking ass ociation duly organized and existing under the laws of the Unit1' States of America, being a member of the Federal Deposit Insurance Corporation, and havin full and complete trust powers, where the Escrow Account is established and maintained. "Beneficial Owner" means any person for which a Participant acquires an interest in the &. I I i ''Board' means the Board of Trustees of the Town. I ''Bond Accounf' means the "Capital Improvement Fund Bond Account" crealed in the section hereof entitled "Creation of Capital Improvement Fund; Establishment of ACCOlfts." ''Bond Counsel' means (i) as of the date of issuance of the Bonds, Kutak Roc~ Denver, Colorado, and (ii) as of any other date, Kutak Rock or such other attorneys selected bylthe Town with nationally recognized expertise in the issuance of municipal bonds. I I ''Bond Purchase Agreement' means the Bond Purchase Agreement dated ~ugust 19, between the Town and the Underwriter concerning the purchase of the Bonds by the Un(lerwriter. I ''Bonds'' means the Sales and Use Tax Revenue Refunding and Improvem~t Bonds, Series 1998, dated August 15, 1998, authorized hereby. The Bonds shall be considered Ito consist I I 02-7062.02 4 ýÿ I . I . I I I of refunding bonds in the principal amount of $600,000 and improvement bonds in I principal amount of $1,600,000. "Business Day' means any day other than (i) a Saturday or Sunday or (ii) a da~ on which banking institutions in the State are authorized or obligated by law or executive order t be closed for business. I I "Capital Improvement Fund" means the "Sales and Use Tax Capital Improvenient Fund" created in this Ordinance. I "Cede" means Cede & Co., the nominee of DTC as record owner of the Bonks, or any successor nominee ofDTC with respect to the Bonds. I I ! "Certified Public Accountonf' means an independent certified public secor witbin the meaning of~12-2-115, C.R.S., and any amendment thereto, licensed to practice in e State of Colorado. "Code" means the IntemaI Revenue Code of 1986, as amended. Each ,+e to a section of the Code herein shall be deemed to include the United States Treasury R, gulations proposed or in effect thereunder and applicable to the Bonds or the use of proce1s thereof: unless the context clearly requires otherwise. I "Combined Maximum Annual Principal and Interest Requirements" means aD. amount equal to the maximum amounts required to be paid in any single ~ent or future calen~ year as the principal of (including any mandatory sinking fund requirements) on interest on the 'onds and any Parity Lien Bonds outstanding, excluding any such bonds which have been defeaseq pursuant to the tenns of the authorizing documents. For pwposes of calculating the Combined =um Annual Principal and Interest Requirements in any calendar year in which any issue of onds and Parity Lien Bonds finally mature, there shall be subtracted from the final principal paYment for said bonds any cash or the present value of any investments deposited in a reserve fund or account established pursuant to the authorizing documents which are properly allocable to said b~nds. I "c.R.S." means the Colorado Revised Statutes, as amended and supplemented I as of the date hereof I ''Depositor;Jl' means any securities depository as the Town may provide and .koint, in accordance with the guidelines of the federal Securities and Exchange Commission, 4hich shall act as securities depository for the Bonds. I I I "DTC" means the Depository Trust Company, New York, New York, and its srccessors and assigns, which shall act as the initial securities depository of the Bonds. I I "DTC Blanket Letter of RepresentatioM' means the agreement between the ,own and DTC whereby the Town agrees to comply with DTC's operational requirements. . "Escrow Account' means a special fund and separate trust account creat~ by the provisions hereal; designated as the "Town of Fraser Refunding Escrow Account, 19r'" to be I I 02-7062.02 5 I I I I I I I I . . I I I I established and maintained at the Bank for the purpose of paying the principal of, premium if any, and interest on the Refunded 1992 Bonds. I I "&crow Agreemenr means the agreement between the Town and the Bank r as of August 15, 1998, concerning the establishment and maintenance of the Escrow Accoun . "Event of Default' means any of the events specified in the section hereof entitl~d ''Events of Default." I i I I "Federal Securities" means bills, certificates of indebtedness, notes, bonds lor similar securities which are direct non-callable obligations of the United States of America orl which are fully and unconditionally guaranteed as to the timely payment of principal and inter~st by the United States of America. I I "Interest Sub-Account' means a sub-account of the Bond Account establis~ed by the provisions hereof for the purpose of paying the interest on the Bonds and any Parity Lieit Bonds. I I "Letter of Instructions" means the Letter of Instructions, dated the date of issuJnce of the Bonds, delivered by Bond Counsel to the Town, as it may be superseded or tended in accordance with its terms. I I ''Official Statemenr means the final version of the PreIimimuy Official Stat~:t' "Ordinance" means this ordinance which authorizes the issuance of the Bonds including any amendments properly made hereto. I "Ordinance No. 197" means that certain Ordinance No. 197 of the Town, ad pted and approved as an emergency ordinance on October 21, 1992, which ordinance auth rized the issuance of the Series 1992 Bonds. "Outstanding' means, as of any date, all Bonds and Parity Lien Bonds, ~xcept the following: I i I I i (a) Any Bond cancelled by the Town or the Paying Agent, or oth~e on the Town's behalf, at or before such date; I I (b) Any Bond held by or on behalf of the Town; i I I (c) Any Bond for the payment or the redemption of which moneys t Federal Secwities sufficient to meet all of the payment requirements of the principal of, intef on, and I any premium due in connection with the redemption of such Bond to the date of QJaturity or any redemption date thereof, shall have theretofore been deposited in trust for such ~urpose in accordance with the section hereof entitled "Defeasing;" and I I (d) Any lost, apparently destroyed, or wrongfully taken Bond in Ii~ of or in substitution for which another bond or other security shall have been executed and djlivered. 02-7062.02 6 ýÿ , i I . . I - I I I "Owner' or "Owners' means the Person or Persons in whose name or namesl a Bond is registered on the registration books maintained by the Paying Agent pursuant hereto. "Participanf' or "Participants" means any broker-dealer, bank, or othe I financial institution from time to time for which DTC or another Depository holds the Bonds. I i "Parity Lien Bondi" means any bonds or other obligations (which mayor ntay not be multiple-fiscal year financial obligations) currently outstanding or permitted to be issued pursuant to the section hereof entitled "Conditions to Issuance of Parity Lien Bonds," with a lien that is equal and on a parity with the lien of the Bonds on the Pledged Revenues and the +oneys on deposit from time-to-time in the Capital Improvement Fund. For purposes of this Or~ce, the Series 1992 Bonds which are not Refunded 1992 Bonds shall be considered to be inCl1ded in the term Parity Lien Bonds. i ''Paying Agent' means the Bank and its successors in interest or assigns approyed by the Town, which shall act as paying agent, bond registrar, and authenticating agent for the ~onds. I ''Permitted Investments" means any lawful investment permitted for the inv~stment of funds of the Town by the laws of the State. I i "Person" means a corporation, :firm, other body corporate, partnership, ass9ciation or individual and also includes an executor, administrator, trustee, receiver or other rep1esentative appointed according to law. ,H I I ''Pledged Revenue~' means all of the Town's Sales and Use Tax revenues reqted to be deposited in the Capital Improvement Fund pursuant to the section hereof entitled ' I eposit of Pledged Revenues." The Pledged Revenues are pledged solely for capital improvement purposes in accordance with the Act. I I i ''Preliminary Official Statemenf' means the Preliminary Official Statem~t dated August 10, 1998, concerning the Bonds and the Town. : ''Principal Sub-Account' means a sub-account of the Bond Account establisJed by the provisions hereof for the purpose of paying the principal of and premium, if any, on ~ Bonds and any Parity Lien Bonds. I "Project' means any purpose for which proceeds of the Bonds may be expend1 under the Ballot Question or under any future ballot question approved by the electors of the ity which modifies the lawful use of the proceeds of the Bonds. I I "Project Accounf' means the "Series 1998 Sales and Use Tax Revenue Bo~d Project Account" created in the section hereof entitled "Creation of Capital Improvemfnt Fund~ Establishment of Accounts." I "Project Cost~' means the Town's costs properly attributable to the Project or any part thereof, including without limitation: (a) the costs oflabor and materials, machinery,1miShingS, equipment, and the restoration of property damaged or destroyed in connection with co struction 02-7062.02 7 ýÿ . . work; (b) the costs of sUlveys, appraisals, plans, designs, specifications, and estimat s; (c) the costs, fees, and expenses of printers, engineers, architects, financial consultants, legal a Visors, or other agents or employees; (d) the costs of issuing the Bonds; (e) the costs of emolition, removal, and relocation; and (f) all other lawful costs as determined by the Board. "Pro Rata Portion" means the dollar amount derived by dividing the amount f principal or interest to come due on the next principal or interest payment date by the number tf monthly -- credits required to be made prior to such payment date. I "Rating Agency' means Fitch Investors Service, Inc., Moody's Investors servicf' Inc. and Standard & Poor's Ratings Services, a Division of The McGraw-Hill Companies, Inc. I . ; ''Record Date" means the fifteenth (15th) day of the calendar month Jrnediately I preceding each interest payment date. ! I ''Refunded 1992 Bondi" means $525,000 in principal amount of the Series 1992 Bonds maturing on December 1, 2017, which bonds shall be allocated for purposes of ~ry sinking fund redemption in the following years and dollar amounts, indicated as (y lamount): 2006/$25,000; 20071$30,000; 2008/$30,000; 2009/$35,000; 2010/$30,000; 2011/$35,000; 20~2/$40,000; 2013/$45,000; 2014/$45,000; 2015/$50,000; 2016/$55,000; and 20171$105,000. , I ''Refunded Bond RequirementS" means the principal, redemption premium ~ any, and interest due in connection with the Refunded 1992 Bonds, at maturity or upon prior rfemption, as set forth in the Escrow Agreement. ''Refunding Act' means Article 56 of Title 11, Colorado Revised Statutes, as Jended. I ''Refunding Project' means any purpose for which proceeds of the Bonds may be expended under the Refunding Act, including, but not limited to, the payment of ~ allocable portion of the costs ~f issuance of the Bonds and the refunding, paying and dischar~g of the Refunded Bond ReqUIrements. I ''Reserve Account' means the "Sales and Use Tax Capital Improvement F~~ Reserve Account" created in the section hereof entitled ''Creation of Capital Improvem~t Fund; Establishment of Accounts." I I I "Reserve Account Contract' means a surety bond, insurance policy, letter lof credit, investment agreement, investment contract or similar instrument. I I "Reserve Account Requiremenf' means, as of any date on which it is calculat1 the least of (i) 10% of the principal amount of the Outstanding Bonds, (ii) the maximum I ual debt service in any calendar year on the Outstanding Bonds or (ill) 125% of the average annual debt service on the Outstanding Bonds; provided, however, that the Reserve Account R~quirement may be reduced if, in the opinion of Bond Counsel, the funding or maintenance of it ~t the level otherwise determined pursuant to this definition will cause the Reserve Account to ~xceed the amount permitted by the Code to be invested in higher yielding investments as a reasonably required reserve and replacement fund. 02-7062.02 8 ýÿ . . "Sales and Use Tax" means the sales and use tax of the Town, as imposed bYlthe Town pursuant to the Sales and Use Tax Ordinances and in effect as of the date hereof The t~rm "Sales and Use Tax" does not include any increase in the rate of sales tax from the present ~ate of 4% and does not include any other legally available excise tax unless otherwise provi~ed by the Board. "Sales and Use Tax Ordinances" means Ordinance Nos. 39, 41, 42, 95, 100, 106, 116, 142, 167 and 237 of the Town. "Series 1992 Bonds" means the Town's its Sales and Use Tax Revenue Retunding and Improvement Bonds, Series 1992, dated October 15, 1992, originally issued in the I aggregate principal amount of $1,145,000, and now outstanding in the aggregate principal amount of $1,025,000. "State" means the State of Colorado. "Town" means the Town of Fraser, Grand County, Colorado. "Underwriter" means George K. Baum & Company, of Denver, Colorado. Section 2. Authori%tltion and Purpose of the Bonds. Pursuant to and in accor4ance with the Act, the Refunding Act and the Ballot Question, the Town hereby authorizes, approves and orders that there shall be issued the "Town of Fraser, Colorado, Sales and.Dse T~ Revenue Refunding and Improvement Bonds, Series 1998" in the aggregate principal lount of $2,200,000 for the purpose of paying Project Costs and costs of the Refunding Project. i I Section 3. Bond Details. i I (a) Registered Form, Denominations, Original Dated Date and Numb~ring. The Bonds shall be issued as fully registered bonds in denominations of $5,000 or :y. integral multiple thereot: shall be dated as of an original dated date of August 15, 199: ' shall be consecutively numbered in the manner determined by the Paying Agent and shall be registered in ~e names of the Persons identified in the registration books of the Town rnaintafed by the Paymg Agent. I I (b) Maturity Dates, Principal Amounts and Interest Rates. The ~onds shall mature on June 1 of the years and in the principal amounts, and shall bear interest at the rates per annum (calculated based on a 360-day year of twelve 30-day months1, set forth below: 02-7062.02 9 ýÿ . . Maturity Principal Amount Interest Rate 2001 $ 55,000 .% 2002 60,000 -- 2003 65,000 -- 2004 70,000 -- 2005 75,000 -- 2006 105,000 -- 2007 110,000 -- 2008 115,000 -- 2009 120,000 -- 2010 125,000 -- 2011 135,000 -- 2017 1,165,000 -- As required by Section 29-2-112(3), C.RS., the maximum net effective Dkerest rate authorized on the Bonds is hereby specified to be 6.0%. I I (c) Accrual and Dates of Payment of Interest. Interest on the B nds shall accrue at the rates set forth above from the later of the original dated date or the latest interest payment date (or in the case of defaulted interest, the latest date) to wbi h interest has been paid in full and shall be payable on June 1 and December 1 of ch year, commencing December 1, 1998. I (d)Mmmer and Form of Payment. Principal 0:( premium, if any, ~~ the final installment of interest on each Bond shall be payable to the Owner thereof upon ~esentation and surrender of such bond at the principal operations office of the Paying Agent or at such other location as identified by the Paying Agent. Interest (other than the final =:ent of interest) on each Bond shall be payable by check or draft of the Paying Agent ed on the interest payment date to the Owner thereof as of the Record Date. All payments of the principal of: premium, if any, and interest on the Bonds shall be made in lawful m4ney of the United States of America. I I I i (e) Book-Entry Registration. The Bonds shall be initially issued in th~ form of a single, certificated, fully registered Bond for each maturity. Upon initial iss\1ance, the ownership of each such Bond shall be registered in the registration books kept by the Bond Registrar in the name of Cede, and principal of: premium if any, and interest on the ,onds shall be paid to DTC in accordance with the DTC Blanket Letter of Representations, provided, however, if at any time the Paying Agent determines, and notifies the Town of its detennination, that DTC is no longer able to act as, or is no longer satisfactorily ~orming its duties as, securities depository for the Bonds, the Town may, at its sole an, absolute discretion, either (A) designate a substitute securities depository fur DTe and ~ the Bonds as directed by such substitute securities depository or (B) tenninate the ook-entry registration system and reregister the Bonds in the names of the Beneficial Own,-s thereof. I 02-7062.02 10 i I I I ýÿ . . Neither the Town nor the Paying Agent shall have any liability to DTC, Cede, anJ substitute securities depository, any Beneficial Owner, any Person in whose name the Bonds are reregistered at the direction of any substitute securities depository, or any other P~n for any action taken to implement the Town'. discretionary determination set furth above ~ is taken pursuant to any direction of or in reliance on any infonnation provided by DTC, Cede, any substitute securities depository, any Beneficial Owner, or any Person in whose name I the Bonds are reregistered. Section 4. Form of the Bonds. The Bonds shall be in substantially the form s~ forth in Appendix A hereto, with such changes thereto, not inconsistent herewith, as may be nepessary or desirable and approved by the officials of the Town executing the same (whose ~anual or facsimile signatures thereon shall constitute conclusive evidence of such approval). J Although attached as an appendix for the convenience of the reader, Appendix A is an integral lart of this Ordinance and is incorporated herein as if set forth in full in the body of this Ordinance. I Section S. Execution, Authentication and Delivery of the Bonds. I I I I (a) Erecutlon. The Bonds sba11 be executed in the name and on i of the Town with the manual or facsimile signature of the Mayor, shall bear a manual or simile of the seal of the Town and shall be attested by the manual or facsimile signature 0 the Town Clerk both of whom are hereby authorized and directed to prepare and execute thf Bonds in accordance with the requirements hereof. Should any officer whose mannal ot facsimile signature appears on the Bonds cease to be such officer before delivery of any Bond, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposef. (b) Authentication. When the Bonds have been duly executed, the offi~ of the Town are authorized to, and shall, deliver the Bonds to the Paying Agent for ~entication. No Bond shall be secured by or entitled to the benefit of this Ordinance, or shall ~ valid or obligatory for any purpose, unless the certificate of authentication of the Paying Ag= been manually executed by an~orized signatory of the Paying Agent. The executed . cate of authentication of the Paying Agent upon any Bond shall be conclusive evidence, 1d the only competent evidence, that such Bond has been properly authenticated hereunder. (c) Delivery. Upon the authentication of the Bonds, the Paying Agent shan deliver the same to DTC in accordance with the provisions of the DTC Blanket I Letter of Representations. Upon receipt of the agreed purchase price of the Bonds I from the Underwriter and issuance of the approving opinion of Bond Counse1, DTC sba11 be r to release the Bonds to the Beneficial Owners. Section 6. Registration, Transfer and Exchange of the Bonds. I I (a) Registration. The Paying Agent shall maintain registration books in! which the ownership, transfer and exchange of Bonds sba11 be recorded. The person in who~ name any Bond shall be registered on such registration books shall be deemed to be the abso ute owner thereof for all purposes, whether or not payment on any Bond shall be overdue, and either the I 02-7062.02 11 ýÿ . . I i Town nor the Paying Agent shall be affeeted by any notice or other info~on to the I oom~. I I I I (b) Transfer and Exchange. The Bonds may be transferred or exc:f at the principal office of the Paying Agent at the location identified in the definition of Pa . g Agent in the section hereof entitled "Definitions," for a like aggregate principal amount 01 Bonds of other authorized denominations of the same maturity and interest rate, upon paY1ent by the transferee of a transfer fee, any tax or governmental charge required to be paid ~ respect to such transfer or exchange and any oost of printing bonds in oonnection th~th. Upon surrender for transfer of any Bond, duly endorsed for transfer or accompanied by an assignment duly executed by the Owner or his or her attorney duly authorized in ~ting, the Town shall execute and the Paying Agent shall authenticate and deliver in the rujme of the transferee a new Bond. i I (c) Limitations on Transfer. The Town and Paying Agent shall not be~equired to issue or transfer any Bonds: (i) during a period beginning at the close of business on e Record Date and ending at the opening of business on the first Business Day following 1 e ensuing interest payment date, or (Ii) during the period beginning at the opening of busin~ on a date forty-five (45) days prior to the date of any redemption of Bonds and ending at the ppening of business on the first Business Day following the day on which the applicablel~otice of redemption is mailed. The Paying Agent shall not be required to transfer any Bonds rleeted or called for redemption. I Section 7. Replacement of Lost, Destroyed or Stolen Bonds. If any Bond shk become lost, apparently destroyed, stolen or wrongfully taken, it may be replaced in the form arld tenor of the lost, destroyed, stolen or taken bond and the Town shall execute and the Paying 4gent shall authenticate and deliver a replacement Bond upon the Owner furnishing, to the satisfacr.on of the Paying Agent: (i) proof of ownership (which shall be shown by the registration bO<jlks of the Paying Agent), (ii) proof of loss, destruction or theft, (ill) an indemnity to the Tot and the Paying Agent with respect to the Bond lost, destroyed or taken, and (iv) payment of tie cost of preparing and executing the new bond or bonds. I i Section 8. Redemption of Bonds Prior to Maturity. I I a) Optional Redemption. The Bonds maturing on and before J~e 1, 2008 are not subject to redemption prior to their respective maturity dates. 1]he Bonds maturing on and after June I, 2009 are subject to redemption prior to matutity at the option of the Town, in whole or in part in integral multiples of $5,000, and ~ in part in such order of maturities as the Town shall determine and by lot within a maturi~, on June 1,2008 and on any date thereafter, at a redemption price equal to the percentag~ set forth below times the principal amount of the redeemed Bonds, plus accrued inte1est to the redemption date: i Redemption Date Redemption Prile June 1,2008 through May 31, 2009 101.0% 02-7062.02 12 ýÿ . . June 1, 2009 and thereafter 100.0 (b) Mandatory Sinking Fund Redemption. The Bonds maturing on June 1, 2017 are subject to mandatory sinking fund redemption by lot on June 1 of the years and in the principal amounts specified below, at a redemption price equal to the principal amount thereof (with no redemption premium), plus accrued interest to the redemption date: Year Principal Amount 2012 $150,000 2013 145,000 2014 155,000 2015 165,000 2016 175,000 2017 (final maturity) 325,000 At its option, to be exercised on or before the forty fifth day next preceding each sinking fund redemption date, the Town may (i) deliver to the Paying Agent for cancellation any Bonds with the same maturity date as the Bonds subject to such sinking fund redemption and (ii) receive a credit in respect of its sinking fund redemption obligation for any Bonds with the same maturity date as the Bonds subject to such sinking fund redemption which prior to such date have been redeemed (otherwise tmm through the operation of the sinking fund) 'and cancelled by the Paying Agent and not theretofore applied as a credit against any sinking fund redemption obligation. Each Bond so delivered or previously redeemed shall be credited by the Paying Agent at the principal amount thereof to the obligation of the Town on such sinking fund redemption date, and the principal amount of Bonds to be redeemed by operation of such sinking fund on such date shall be accordingly reduced. (c) Redemption Procedures. Notice of any redemption of Bonds shall be given by the Paying Agent in the name of the Town by sending a copy of such notice by first-class, postage prepaid mail, not less than 30 days prior to the redemption date, to the Owner of each Bond being redeemed. Such notice shall specify the number or numbers of the Bonds so to be redeemed (if redemption shall be in part) and the redemption date. If any Bond shall have been duly called for redemption and it: on or before the redemption date, there shall have been deposited with the Paying Agent in accordance with this Ordinance funds sufficient to pay the redemption price of such Bond on the redemption date, then such Bond shall become due and payable at such redemption date, and from and after such date interest will cease to accrue thereon. Failure to deliver any redemption notice or any defect in any redemption notice shall not affect the validity of the proceeding for the redemption of Bonds with respect to which such failure or defect did not occur. Any Bond redeemed prior to its maturity by prior redemption or otherwise shall not be reissued and shall be cancelled. Section 9. Creation of Capital Improvement Fund; Establishment of Accounts. Pursuant to the Sales Tax Ordinance, there has heretofore been created the Capital Improvement Fund. Moneys deposited in the Capital Improvement Fund shall not thereafter be available to be pledged or expended for any general municipal purpose. There is hereby reestablished as 02-7062.02 13 . . accounts of the Capital Improvement Fund the Bond Account (within which there are established the Interest Sub-Account and the Principal Sub-Account) and the Reserve Account. There also is hereby established within the Capital Improvement Fund the Project Account. Each of the above reference accounts may be line item accounts or sub-accounts and shall be conside~ed trust accounts for the benefit of Owners in accordance with the provisions of this Ordinance. There is also hereby established the Escrow Account, to be maintained by the Bank in accordance with the provisions hereof and of the Escrow Agreement. Section 10. Application of Proceeds of the Bonds; Funding of Reserve Account (a) Application of Bond Proceeds. Upon payment to the Town of the purchase price of the Bonds in accordance with the Bond Purchase Agreement, the proceeds received by the Town from the sale of the Bonds shall be applied as a supplemental appropriation of the Town as follows: (i) to the Escrow Account, proceeds of the Bonds and, if necessary, other legally available moneys of the Town, in an amount sufficient to fund the Escrow Account for the payment of the principal ot: premium if any, and interest on the Refunded 1992 Bonds in accordance with the report of a Certified Public Accountant; (ii) , to the Interest Sub-Account, the paccrued interest on the Bonds from the dated date thereof to the date of issuance, if any; and (ill) to the Reserve Account, an amount which, when combined with the moneys currently deposited to the Reserve Account, equal the amount of the Required Reserve; and (iv) all remaining proceeds shall be deposited into the Project Account. Section 11. Deposit of Pledged Revenues. Immediately upon receipt of the Sales and Use Tax, the Town shall make the following deposits to the Capital Improvement Fund in the following order of priority: FIRST: To the credit of the Interest Sub-Account, the amounts required by the section hereof entitled ''Bond Account;" SECOND: To the credit of the Principal Sub-Account, the amounts required by the section hereof entitled ''Bond Account;" TIllRD: To the credit of the Reserve Account, the amounts required by the section hereof entitled ''Reserve Account;" FOURTH: To the credit of any other fund or account hereafter established for the payment of the principal ot: premium if any, and interest on subordinate lien obligations as described in paragraph (c) of the section hereof entitled "Pledge and Lien for Payment of 02-7062.02 14 . . Bonds", including any sinking fund, reserve fund, or similar fund or account established therefor, the amounts required by the ordinance or other enactment authorizing issuance of said subordinate lien obligations; and FIFTH: To the credit of any other account hereafter established by the Town solely for capital improvement purposes. Section 12. Bond Account. (a) Use of Moneys in Bond Account. Moneys deposited in the Bond Account shall be used solely for the purpose of paying the principal ot: premium if any, and interest on the Bonds and any Parity Lien Bonds. The Principal Sub-Account shall be used to pay the principal of and premium, if any, on the Bonds and any Parity Lien Bonds, and the Interest Sub-Account shall be used to pay the interest on the Bonds and any Parity Lien Bonds. (b) Deposits to Interest Sub-Account. On or before the last day of each month, commencing in the month next succeeding the date of issuance of the Bonds, the Town shall credit to the Interest Sub-Account, from the Pledged Revenues and any interest income to be deposited in the Interest Sub-Account pursuant to the terms hereot: an amount equal to the Pro Rata Portion of the interest to come due on the Bonds and any Parity Lien Bonds on the next succeeding interest payment date. (c) Deposits to Principal Sub-Account. On or before the last day of each month, commencing in the month next succeeding the date of issuance of the Bonds, the Town shall credit to the Principal Sub-Account, from the Pledged Revenues and any interest income to be deposited in the Principal Sub-Account pursuant to the terms hereot: an amount equal to the Pro Rata Portion of the principal coming due on the Bonds and on any Parity Lien Bonds on the next succeeding principal payment date. (d) Investments. Moneys deposited in the Bond Account may be invested or deposited in securities or obligations which are Pennitted Investments. The investment of moneys deposited in the Bond Account shall, however, be subject to the covenants and provisions of the section hereof entitled "Covenants Regarding Exclusion of Interest on Bonds from Gross Income for Federal Income Tax Pwposes." Except to the extent otherwise required by such section, all interest income from the investment or reinvestment of moneys deposited in any sub-account of the Bond Account shall remain in and become part of such sub-account. Section 13. Reserve Account (a) Use of Moneys in Reserve Account. Moneys in the Reserve Account shall be used, if necessary, only to prevent a default in the payment of the principal ot: premium if any, and interest on the Bonds and any Parity Lien Bonds when due. Moneys on deposit in the Reserve Account, proceeds of the liquidation of Pennitted Investments on deposit in the Reserve Account or moneys available from a Reserve Account Contract shall be transferred to the Bond Account on any date on which a payment of principal ot: premium, if any, or interest 02-7062.02 15 ýÿ . . on the Bonds and any Parity Lien Bonds is due to the extent the amount on deposit in the Bond Account is insufficient to make such payment. (b) Funding and Maintenance of Reserve Accaunt Requirement. The Reserve Account Requirement shall be funded and maintained by anyone of or any combination of (i) cash; (ii) Permitted Investments; and (ill) a Reserve Account Contract which provides for payments when and as required for purposes of the Reserve Account and is issued by an obligor whose obligations such as the Reserve Account Contract are either (A) rated by a Rating Agency as investment grade or (B) if a rating has been obtained on the Bonds or any Parity Lien Bonds whose obligations are rated by each Rating Agency that then maintains a rating on the Bonds or any Parity Lien Bonds in a category (or comparable classification) equal to or higher than the category, if any, in which the Bonds or any Parity Lien Bonds are rated. (c) Valuation of Deposits. Cash shal1 satisfY the Reserve Account Requirement by the amount of cash on deposit. Permitted Investments shall satisfy the Reserve Account Requirement by the value of such investments. The value of each Permitted Investment on deposit in the Reserve Account shall be (i) its purchase price from the date of purchase until the first date thereafter on which the Reserve Account Requirement is calculated pursuant to paragraph (d) of this section and (ii) following each date on which the Reserve Account Requirement is calculated pursuant to paragraph (d) of this section until the next date on which the Reserve Account Requirement is so calculated, its fair market value determined as of such calculation date. A Reserve Account Contract shal1 satisfY the Reserve Account Requirement by the amount payable to the Town pursuant to such contract. (d) Calculation of Reserve Account Requirement and Transfers Resulting from Calculation. The Reserve Account Requirement shal1 be calculated as of (i) the date of issuance of the Bonds, (ii) the date of issuance of each series of Parity Lien Bonds and (ill) not less than every five years. If at any time the calculated amount of the Reserve Account is less than the Reserve Account Requirement or transfers are made from the Reserve Account as provided in paragraph (a) hereof: then the Town shal1 deposit to the Reserve Account from the Pledged Revenues, amounts sufficient to bring the amount deposited in the Reserve Account to the Reserve Account Requirement. If at any time the calculated amount of the Reserve Account is more than the Reserve Account Requirement, then the Town shall transfer to the Bond Account such amount which is in excess of the Reserve Account Requirement. Such deposits shal1 be made as soon as possible after such use or calculation, but in accordance with and subject to the limitations of the section hereofentitled "Deposit of Pledged Revenues." (e) Transfer of Interest Income to Bond Accuunt. The investment of moneys deposited in the Reserve Account shall be subject to the covenants and provisions of the section hereof entitled ''Covenants Regarding Exclusion of Interest on Bonds from Gross Income for Federal Income Tax Purposes." Except to the extent otherwise required by such section, interest income from the investment or reinvestment of moneys deposited in the Reserve Account shall be transferred to the Bond Account. Section 14. Project Account 02-7062.02 16 . . (a) Use of Moneys in Project Account. All moneys deposited in the Project Account shall be applied solely to the payment of the Project Costs. Upon the determination of the Board that all Project Costs have been paid or are detenninable, any balance remaining in the Project Account (less any amounts necessaIy to pay Project Costs not then due and owing) shall be transferred to the Bond Account. (b) Investments. Moneys deposited in the Project Account may be invested or deposited in securities or obligations which are Pennitted Investments. The investment of moneys deposited in the Project Account shall, however, be subject to the covenants and provisions of the section hereof entitled "Covenants Regarding Exclusion of Interest on Bonds from Gross Income for Federal Income Tax Purposes." Except to the extent otherwise required by such section, interest income from the investment or reinvestment of moneys deposited in the Project Account shall remain in and become part of the Project Account. Section 15. Escrow Account (a) Maintenance and Operation of Escrow Account. The Escrow Account shall be maintained in an amount at the time of the initial deposits therein and at all times subsequently at least sufficient, together with the known minimum yield to be derived from the initial investment and any temporary reinvestment of the deposits therein or any part thereof in Federal Securities to pay the Refunded Bond Requirements. Except as may be otherwise provided in the Escrow Agreement, the Town shall have no right or title to the moneys credited to otheld in the Escrow Account, and such title shall be and is hereby transferred to the Bank in trust for the payment of the Refunded Bond Requirements. Moneys shall be withdrawn by the Bank from the Escrow Account in sufficient amounts and at such times to permit the payment without default of the Refunded Bond Requirements. Iffor any reason the amount in the Escrow Account shall at any time be insufficient for the pUIpOse hereot: the Town shall forthwith from the first moneys available therefor deposit in such account such additional moneys as shall be necessaIy to permit the payment in full of the Refunded Bond Requirements. (b) Optional Redemption of Refunded 1992 Bonds; Notice of Refunding. The Board has elected and does hereby declare its intent to exercise on behalf of and in the name of the Town its option to redeem the Refunded 1992 Bonds which have not matured on or before their earliest optional redemption date on the optional redemption date as set forth in the Escrow Agreement. The Town hereby authorizes and irrevocably instructs the Bank to give or cause to be given a notice of refunding, defeasance and redemption of the Refunded 1992 Bonds. Section 16. Pledge and Lien/or Payment of Bonds. (a) Pledge of Revermes. The Town hereby irrevocably pledges for the payment of the principal ot: premium, if any, and interest on the Bonds and Parity Lien Bonds at any time Outstanding, and grants a first lien (but not necessarily an exclusive first lien) for such pwpose on (i) the Pledged Revenues and (ii) all moneys on deposit from time-ta-time in the Capital Improvement Fund. 02-7062.02 17 ýÿ . . (b) Superior Liens Prohibited The Town shall not pledge or create any other lien on the revenues and moneys pledged pursuant to paragraph (a) of this Section that is superior to the pledge thereof or lien thereon pursuant to such paragraphs. (c) Subordinate Liens Permitted Nothing herein shall prohibit the Town from issuing subordinate lien obligations and pledging or creating a lien on the revenues and moneys pledged and the lien created pursuant to paragraph (a) of this section that is subordinate to the pledge thereof or lien thereon pursuant to such paragraph, provided that no Event of Default shall have occurred and be continuing. (d) No Prohibition on Additional Security. Nothing herein shall prolubit the Town from depositing any legally available revenues that are not Pledged Revenues or any other moneys into any account of the Capital Improvement Fund pledged to the payment of the Bonds and Parity Lien Bonds (and thereby subjecting the moneys so deposited to the pledge made and lien granted in paragraph (a) of this section). (e) Bonds are Special, Limited Obligations of the Town. The Bonds are special, limited obligations of the Town payable solely from the Capital Improvement Fund and secured solely by the sources provided in this Ordinance. The Bonds shall not constitute a debt of the Town within the meaning of any constitutional or statutory limitation. Section 17. Conditions to Issuance of Parity Lien Bonds. The Town shall not issue Parity Lien Bonds unless all of the following conditions are satisfied: (a) Historical and Expected Sales and Use Tax Test; Special Test for Re.fundings. The Town Manager (or other Town official or employee designated in writing by the Mayor) certifies in writing that either: (i) the Sales and Use Tax for any 12 consecutive months in the 18 months immediately preceding the month in which such certification is delivered (referred to in this paragraph as the "test period") have been equal to at least 125% of the sum of the Combined Maximum Annual Principal and Interest Requirements due or to become due on the Bonds and any Parity Lien Bonds during each calendar year following the date of issuance of the proposed Parity Lien Bonds, provided that in calculating the Sales and Use Tax during the test period, the Town shall add the amount by which the Town reasonably estimates the Sales and Use Tax would have been increased during the test period from any increase in the rate of the Town's Sales and Use Tax that (A) is effective on or prior to the date such certification is delivered and (B) is pledged to the payment of principal of, premium, ifany, and interest on the Bonds; or (ii) the proceeds of the proposed Parity Lien Bonds will be used to refund the Bonds or Parity Lien Bonds and the aggregate principal of and interest due on the proposed Parity Lien Bonds is not greater than the aggregate principal of and interest due on the Bonds or Parity Lien Bonds that will be refunded. 02-7062.02 18 ýÿ . e (b) Accrued Interest Deposited in Bond Account. Moneys (which may but need not be proceeds of the proposed Parity Lien Bonds) in an amount equal to the interest accrued on the proposed Parity Lien Bonds from their dated date to their date of issuance are deposited into the Bond Account. (c) Reserve Account Deposit. The Reserve Account is funded in the amount of Reserve Account Requirement in accordance with the section hereof entitled "ReseIVe Account". (d) No Event of Default. The Mayor certifies in writing that no Event of Default has occurred and is continuing. Section 18. Additional General Covenants. In addition to the other covenants of the Town contained herein, the Town hereby further covenants for the benefit of Owners of the Bonds that: (a) Maintenance of Sales and Use Tax. The Town will not reduce the rate of the Sales and Use Tax or alter, exempt or modifY the transactions, properties or items subject to the Sales and Use Tax in any manner that the Town expects will materially reduce the amounts available for deposit into the Capital Improvement Fund. (b) Efficient Collection and Eriforcement of the Sales and Use Tax. The Town will manage the collection and enforcement of the Sales and Use Tax in the most efficient and economical manner practicable. (c) Inspection of Records. The Town will keep or cause to be kept such books and records showing the proceeds of the Sales and Use Tax, in which complete entries shall be made in accordance with generally accepted accounting principles, as applicable to governmental entities, and the Owner of any Bond shall have the right at all reasonable times to inspect all non-confidential records, accounts, actions and data of the Town relating to the Bonds, the Sales and Use Tax and the Capital Improvement Fund. (d) Annual Audit. The Town will cause an annual audit to be made of the books relating to the Sales and Use Tax each year by a certified public or registered accountant and shall furnish a copy thereof to the Underwriter at its request and to any Owner who so requests and agrees to pay the cost of reproduction and mailing. The annual audit of the Town's general purpose financial statements shall be deemed to satisfY this covenant. (e) Replacement of the Sales and Use Tax. If the Sales and Use Tax is replaced by another tax or revenue source, the revenues, net of collection and enforcement costs, received by the Town from the replacement in an amount sufficient to pay the principal of: premium, if any, and interest on the Bonds and to make the deposits to the accounts required hereunder are hereby pledged for the benefit of the Owners of the Bonds in the same manner and on the same terms as the Pledged Revenues are pledged therefor hereunder. Section 19. Covenants Regarding Exclusion of Interest on Bonds from Gross Income for Federal Income Tax Purposes. For purposes of ensuring that the interest on the Bonds is 02-7062.02 19 ýÿ . . and remains excluded from gross income for federal income tax purposes, the Town hereby covenants that: (a) Prohibited Actions. The Town will not use or pennit the use of any proceeds of the Bonds or any other funds of the Town from whatever source derived, directly or indirectly, to acquire any securities or obligations and shall not take or pennit to be taken any other action or actions, which would cause any Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code, or would otherwise cause the interest on any Bond to be includible in gross income for federal income tax purposes. (b) Affirmative Actions. The Town will at all times do and peIform all acts pennitted by law that are necessary in order to assure that interest paid by the Town on the Bonds shall not be includtble in gross income for federal income tax purposes under the Code or any other valid provision of law. In particular, but without limitation, the Town represents, warrants and covenants to comply with the following rules unless it receives an opinion of Bond Counsel stating that such compliance is not necessary: (i) gross proceeds of the Bonds will not be used in a manner that will cause the Bonds to be considered "private activity bonds" within the meaning of the Code; (li) the Bonds are not and will not become directly or indirectly "federally guaranteed"; and (ill) the Town will timely file Internal Revenue Form 8038-G which shall contain the information required to be filed pursuant to Section 149(e) of the Code. (c) Bank Qualified. The Town hereby designates the Bonds as "qualified tax- exempt obligations" for purposes of Section 265(b)(3) of the Code. Section 20. Defeasance. Any Bond shall not be deemed to be Outstanding hereunder if it shall have been paid and cancelled or if cash or Federal Securities shall have been deposited in trust for the payment thereof (whether upon or prior to the maturity of such Bond, but if such Bond is to be paid prior to maturity, the Town shall have given the Paying Agent irrevocable directions to give notice of redemption as required by this Ordinance, or such notice shall have been given in accordance with this Ordinance). In computing the amount of the deposit described above, the Town may include interest to be earned on the Federal Securities. If less than all the Bonds are to be defeased pursuant to this section, the Town, in its sole discretion, may select which of the Bonds shall be defeased. Section 21. Events of Default Each of the following events constitutes an Event of Default: (a) Nonpayment of Principal, Premium or Interest. Failure to make any payment of principal of: premium, if any, or interest on the Bonds when due hereunder, (b) Breach or Nonperformance of Duties. Breach by the Town of any material covenant set forth herein or failure by the Town to perform any material duty imposed on it hereunder and continuation of such breach or failure for a period of 60 days after receipt by the Town Attorney of the Town of written notice thereof from the Paying Agent or from the Owners of at least 10% in principal amount of the Outstanding Bonds, provided that such 60 02-7062.02 20 . . day period shall be extended so long as the Town has commenced and continues a good faith effort to remedy such breach or failure; or (c) Appointment of Receiver. An order or decree is entered by a court of competent jurisdiction appointing a receiver for all or any portion of the revenues and moneys pledged for the payment of the Bonds pursuant hereto is entered with the consent or acquiescence of the Town or is entered without the consent or acquiescence of the Town but is not vacated, discharged or stayed within 30 days after it is entered. Section 22. Remedies for Events of Default. (a) Remedies. Upon the occurrence and continuance of any Event of Default, the Owners of not less than 25% in principal amount of the Bonds then Outstanding, including, without limitation, a trustee or trustees therefor, may proceed against the Town to protect and to enforce the rights of any Owner of Bonds under this Ordinance by mandamus, injunction or by other suit, action or special prOCP.edings in equity or at law, in any court of competent jurisdiction: (i) for the payment of interest on any installment of principal of any Bond that was not paid when due at the interest rate borne by such bond, (ii) for the appointment of a receiver or an operating trustee, (ill) for the specific perfonnance of any covenant contained herein, (iv) to enjoin any act that may be unlawful or in violation of any right of any Owner of any Bond, (v) to require the Town to act as if it were the trustee of an express trust, (vi) for any other proper legal or equitable remedy as such Owner may deem most effectual to protect their rights or (vii) any combination of such remedies or as otherwise may be authorized by any statute or other provision of law; provided, however, that acceleration of any amount not yet due on the Bonds according to their terms shall not be an available remedy. All such proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all Owners of Bonds then Outstanding. Any receiver or operating trustee appointed in any proceedings to protect the rights of Owners of Bonds hereunder may collect, receive and apply all revenues and moneys pledged for the payment of the Bonds pursuant hereto arising after the appointment of such receiver or operating trustee in the same manner as the Town itself might do. (b) Failure to Pursue Remedies Not a Release; Rights Cumulative. The failure of any Owner of any Bond then Outstanding to proceed in any manner herein provided shall not relieve the Town of any liability for failure to perform or earlY out its duties hereunder. Each right or privilege of any such Owner (or trustee therefor) is in addition and is cumulative to any other right or privilege, and the exercise of any right or privilege by or on behalf of any Owner shall not be deemed a waiver of any other right or privilege thereof Each Owner of any Bond shall be entitled to all of the privileges, rights and remedies provided or permitted in this Ordinance and as otherwise provided or pennitted by law or in equity. (c) Obligations of Town and Paying Agent in Connection with Events of Default. Upon the occurrence and continuation of any of Events of Default: (i) the Town shall take all proper acts to protect and preserve the security for the payment of the Bonds and to insure the payment of debt service on the Bonds promptly when due; (ii) the Town and the Paying Agent shall give the Owners of the Bonds then Outstanding notice by first class mail of (A) any default in the payment ot: premium, if any, or interest on the Bonds immediately after discovery 02-7062.02 21 . . thereofand (B) any other Event of Default within 30 days after discovery thereof. During the continuation of any Event of Default, except to the extent it may be unlawful to do so, all revenues and moneys pledged for the payment of the Bonds pursuant hereto shall be held for and applied to the debt service on all Bonds on an equitable and prorated basis. If the Town fails or refuses to proceed as provided in this paragraph, the Owners of not less than 25% in principal amount of the Bonds then Outstanding, after demand in writing, may proceed to protect and to enforce the rights of the Owners of the Bonds as provided in this paragraph; and to that end any such rights of Owners of Bonds then Outstanding shall be subrogated to all rights of the Town under any agreement or contract involving the revenues and moneys pledged for the payment of the Bonds pursuant hereto that was entered into prior to the effective date of this Ordinance or thereafter while any of the Bonds are Outstanding. Nothing herein requires the Town to proceed as provided in this paragraph ifit detennines in good faith and without any abuse of its discretion that such action is likely to affect materially and prejudicially the Owners of the Bonds then Outstanding. Section 23. Amendment of Ordinance. (a) Amendments Permitted without Notice to or Consent of Owners. The Town may, without the consent of or notice to the Owners of the Bonds, adopt one or more ordinances amending or supplementing this Ordinance (which ordinances shall thereafter become a part hereof) for anyone or more or all of the following purposes: (i) to cure any ambiguity or to cure, correct or supplement any defect or inconsistent provision of this Ordinance; (ii) to subject to this Ordinance additional revenues, properties or collateral; (ill) to facilitate the designation of a substitute securities depository or to tenninate the book-entry registration system for the Bonds in accordance with the section hereof entitled "Bond Details;" (iv) to facilitate the issuance of Parity Lien Bonds permitted to be issued pursuant to the section hereof entitled "Conditions to Issuance of Parity Lien Bonds;" (v) to facilitate the funding of the Reserve Account or the substitution of one source of funding of the Reserve Account for another pennitted source in accordance with the section hereof entitled "Reserve Account;" (vi) to maintain the then existing or to secure a higher rating of the Bonds by any nationally recognized securities rating agency; or (vii) to make any other change that does not materially adversely affect the Owners of the Bonds. 02-7062.02 22 ýÿ . - (b) Amendments Requiring Notice to and Consent of Owners. Except for amendments permitted by paragraph (a) of this section, this Ordinance may only be amended (i) by an ordinance of the Town amending or supplementing this Ordinance (which, after the consents required therefor, shall become a part hereof) and (ii) with the written consent of the Owners of at least 66 2/3% in aggregate principal amount of the Bonds then Outstanding; provided that any amendment that makes any of the following changes with respect to any Bond shall not be effective without the written consent of the Owner of such bond: (A) a change in the maturity of such bond; (B) a reduction of the interest rate on such bond; (C) a change in the terms of redemption of such bond; (0) a delay in the payment of principal of: premium, if any, or interest on such bond; (E) the creation of any pledge of or lien upon any revenues or moneys pledged for the payment of such bond hereunder that is superior to the pledge and lien for the payment of such bond hereunder, (F) a relaxation of the conditions to the issuance of Parity Lien Bonds or to the creation of any pledge of or lien upon any revenues or moneys pledged for the payment of such bond hereunder that is equal to or on a parity with the pledge and lien for the payment of such bond hereunder, (0) a reduction of the principal amount or percentage of Bonds whose consent is required for an amendment to this Ordinance; or (II) the establishment of a priority or preference for the payment of any amount due with respect to any other Bond over such bond. (c) Procedure for Notifying and Obtaining Consent of Owners. Whenever the consent of an Owner or Owners of Bonds is required under paragraph (b) of this Section, the Town shall mail a notice to such Owner or Owners at their addresses as set forth in the registration books maintained by the Paying Agent and to the Underwriter, which notice shall briefly descn'be the proposed amendment and state that a copy of the amendment is on file in the office of the Town Clerk for inspection. Any consent of any Owner of any Bond obtained with respect to an amendment shall be in writing and shall be final and not subject to withdrawal, rescission or modification for a period of 60 days after it is delivered to the Town unless another time period is stated for such purpose in the notice mailed pursuant to this paragraph. Section24. Amendment of Ordinance No. 197. Section I(A)(30) of Ordinance No. 197 of the Town is hereby amended to read in its entirety as follows: (30) Pledged Revenues: all of the Town's Sales and Use Tax revenues annually determined by the Board to be deposited in the Capital Improvement Fund to pay, when due, the Debt Service Requirements and replenish the Reserve Account in accordance with the provisions of this Ordinance. Section 25. Findings and Determinations. Having been fully informed of and having considered all the pertinent facts and circumstances, the Board does hereby find, determine, and declare: (a) The amendment to Ordinance No. 197 set forth in Section 24 of this Ordinance pledges additional revenues to the Series 1992 Bonds and therefore is permitted pursuant to Section II(A)(S) of Ordinance No. 197 without the consent of the owners of the Series 1992 Bonds; 02-7062.02 23 ýÿ . . (b) The Board hereby declares that it will reduce the amount authorized in the Ballot Question by $600,000 to provide for the issuance of general obligation bonds in the amount of$6oo,000 as authorized at the April 7, 1998 election. (c) The funds and investments to be placed in the Escrow Account, together with interest to be derived from such investments, are in an amount which at all times shall be sufficient to pay the principal ot: premium if any, and interest on the Refunded 1992 Bonds as they become due in accordance with the schedule set forth herein, and the computations made in detennining such sufficiency have been verified by a Certified Public Accountant; (d) Entering into and completing the refunding program herein authorized at this time will enable the Board to reduce the total principal and interest payable on the obligations represented by the Refunded 1992 Bonds; (e) Voter approval of the Ballot Question was obtained in accordance with all applicable provisions of law and, in accordance with the Ballot Question (i) the principal amount of the Bonds will not exceed $2,200,000, (ii) the maximum repayment cost of the Bonds will not exceed $4,100,000, and (ill) the maximum annual repayment cost of the Bonds will not exceed $375,000; (t) The Town will enter into a DTC Letter of Representations which will govern the book-entIy registration system for the Bonds; (g) The issuance of the Bonds and all procedures undertaken incident thereto are in full compliance and conformity with an applicable requirements, provisions and limitations prescnbed by the Constitution and laws of the State, including the Act and the Refunding Act, and an conditions and limitations of the Act and the Refunding Act, and other applicable law relating to the issuance of the Bonds have been satisfied; and (h) It is in the best interest of the Town and its residents that the Bonds be authorized, sold, issued and delivered at the time, in the manner and for the purposes provided in this Ordinance. Section 26. Appointment and Duties of Paying Agent. The Paying Agent is hereby appointed as paying agent, registrar and authenticating agent for the Bonds unless and until the Town removes it as such and appoints a successor Paying Agent, in which event such successor shall automatically succeed to the duties of the Paying Agent hereunder and its predecessor shall immediately turn over all its records regarding the Bonds to such successor. The Paying Agent, by accepting its duties as such, agrees to perform all duties and to take all actions assigned to it hereunder in accordance with the terms hereof. The appointment and acceptance of the duties of Paying Agent hereunder may be affected through the execution of a certificate or agreement by the Paying Agent. Section 27. Approval of OfficioJ Statement and MIScellaneous Documents.. The Board hereby ratifies and approves the distribution and use of the Preliminary Official Statement; authorizes and directs the Town staff to prepare a final Official Statement for use in connection 02-7062.02 24 ýÿ . . with the sale of the Bonds in substantially the form thereof presented to the Board at the meeting at which this Ordinance is adopted, with such changes therein, if any, not inconsistent herewith, as are approved by the Town; authorizes and approves the execution of the DTe Blanket Letter of Representations; and authorizes and approves the execution of the Bond Purchase Agreement. The Mayor is hereby authorized and directed to execute the final Official Statement and the Mayor, the Town Clerk and all other officers of the Town are hereby authorized and directed to execute all documents and certificates necessary or desirable to effectuate the issuance of the Bonds and the transactions contemplated hereby. Section 28. Ratification of Prior Actions. All actions heretofore taken (not inconsistent with the provisions of this Ordinance or the Act) by the Board or by the officers and employees of the Town directed toward the issuance of the Bonds for the purposes herein set forth are hereby ratmed, approved and confirmed. Section 29. Events OCCll17ing on Days That Are Not Business DllJ's. Except as otherwise specifically provided herein with respect to a particular payment, event or action, if any payment to be made hereunder or any event or action to occur hereunder which, but for this section, is to be made or is to occur on a day that is not a Business Day shall instead be made or occur on the next succeeding day that is a Business Day. Section 30. Headings. The headirtgs to the various sections and paragraphs to this Ordinance have been inserted solely for the convenience of the reader, are not a part of this Ordinance, and shall not be used in any manner to interpret this Ordinance. Section 31. Ordinance In'epea/t.lble. After any of the Bonds have been issued, this Ordinance shall constitute a contract between the Owners and the Town, and shall be and remain irrepealable until the Bonds and the interest accruing thereon shall have been fully paid, satisfied, and discharged, as herein provided. Section 32. Severability. It is hereby expressly declared that all provisions hereof and their application are intended to be and are severable. In order to implement such intent, if any provision hereof or the application thereof is determined by a court or administrative body to be invalid or unenforceable, in whole or in part, such determination shall not affect, impair or invalidate any other provision hereof or the application of the provision in question to any other situation; and if any provision. hereof or the application thereof is determined by a court or administrative body to be valid or enforceable only if its application is limited, its application shall be limited as required to most fully implement its purpose. Section 33. Repealer. All orders, bylaws, ordinances, and resolutions of the Town, or parts thereot: ihconsistent or in conflict with this Ordinance, are hereby repealed to the extent only of such inconsistency or conflict. Section 34. Emergency Declaration. It is hereby found and determined by the Board that: (i) there exists an immediate need for the Project, in order to properly and safely serve the Town and its residents; and (ii) current interest rates are favorable, allowing the Town to issue the Bonds at reasonable interest rates, and such rates may change at any time. As a result of the 02-7062.02 25 . . foregoing, the Board hereby declares that an emergency exists, and that this Ordinance is necessary to the immediate preservation of the public health and safety, all in accordance with ~31-16-105, C.R.S. Section 35. Effective Date; Recording and Authentication. This Ordinance shall be in full force and effect immediately upon adoption by the Board. This Ordinance shall be recorded in a book kept for that purpose, shall be authenticated by the signatures of the Mayor and the Town Clerk, and shall be published in accordance with law. PASSED, ADOPTED AND APPROVED AS AN EMERGENCY ORDINANCE this 19th day of August, 1998. TOWN OF FRASER, COLORADO By Mayor [SEAL] Attest: By Town Clerk 02-7062.02 26 ýÿ . . APPENDIX A FORM OF THE BOND EXCEPT AS OTHERWISE PROVIDED IN THE HEREINAFTER DEFINED ORDINANCE, TIllS GLOBAL BOOK-ENTRY BOND MAYBE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY (AS DEFINED HEREIN) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. UNITED STATES OF AMERICA TOWN OF FRASER, COLORADO SALES AND USE TAX REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 1998 INTEREST RATE: MATURITY DATE: ORIGINAL DATED DATE: CUSIP: % August 15, 1998 REGISTERED OWNER: PRINCIPAL SUM: DOLLARS TOWN OF FRASER, COLORADO, in the State of Colorado, a duly organized and validly existing town and political subdivision of the State of Colorado (the "Town"), for value received, hereby promises to pay to the order of the registered owner named above or registered assigns, solely from the special funds as hereinafter set forth, on the maturity date stated above, the principal sum stated above, in lawful money of the United States of America, with interest thereon from the original dated date stated above, at the interest rate per annum stated above, payable on June 1 and December 1 of each year, commencing December 1, 1998, the principal of and premium, if any, and the final installment of interest on this bond being payable to the registered owner hereof upon presentation and surrender of this bond at the principal operations office of Bank: One, Colorado, N.A, as Paying Agent (the "Paying Agent"), in Denver, Colorado, or at such other location as identified by the Paying Agent, and the interest hereon (other than the final installment of interest hereon) to be paid by check or draft of the Paying Agent mailed on the interest payment date to the registered owner hereof as of the close of business on the last day (whether or not such day is a Business Day) preceding the interest payment date, except that so long as Cede & Co. is the registered owner of this bond, the principal ot: premium, if any, and interest on this bond shall be paid by wire transfer to .Cede & Co. This bond is one of an issue of bonds of the Town designated Sales and Use Tax Revenue Refunding and Improvement Bonds, Series 1998, issued in the principal amount of $2,200,000 (the ''Bonds''). The Bonds are being issued by the Town for the purpose of constructing and 02-7062.02 1 . . improving streets and providing for stonn drainage, including all necessary or convenient costs related thereto, pursuant to and in full conformity with the Constitution and laws of the State of Colorado and an ordinance (the ''Ordinance'') duly adopted by the Town prior to the issuance hereof [Redemption Provisions to be Inserted Here.] At its option, to be exercised on or before the forty fifth day next preceding each sinking fund redemption date, the Town may (i) deliver to the Paying Agent for cancellation any Bonds with the same maturity date as the Bonds subject to such sinking fund redemption and (ii) receive a credit in respect of its sinking fund redemption obligation for any Bonds with the same maturity date as the Bonds subject to such sinking fund redemption which prior to such date have been redeemed (otherwise than through the operation of the sinking fund) and cancelled by the Paying Agent and not theretofore applied as a credit against any sinking fund redemption obligation. Each Bond so delivered or previously redeemed shall be credited by the Paying Agent at the principal amount thereof to the obligation of the Town on such sinking fund redemption date, and the principal amount of Bonds to be redeemed by operation of such sinking fund on such date shall be accordingly reduced. Notice of any redemption of Bonds shall be given by the Paying Agent in the name of the Town by sending a copy of such notice by first-class, postage prepaid mail, not less than 30 days prior to the redemption date, to the Owner of each Bond being redeemed. Such notice shall specifY the number or numbers of the Bonds so to be redeemed (if redemption shall be in part) and the redemption date. If any Bond shall have been duly called for redemption and it; on or before the redemption date, there shall have been deposited with the Paying Agent in accordance with this Ordinance funds sufficient to pay the redemption price of such Bond on the redemption date, then such Bond shall become due and payable at such redemption date, and from and after such date interest will cease to accrue thereon. Failure to deliver any redemption notice or any defect in any redemption notice shall not affect the validity of the proceeding for the redemption of Bonds with respect to which such failure or defect did not occur. Any Bond redeemed prior to its maturity by prior redemption or otherwise shall not be reissued and shall be cancelled. The Paying Agent shall maintain registration books in which the ownership, transfer and exchange of the Bonds shall be recorded. The person in whose name this bond shall be registered on such registration books shall be deemed to be the absolute owner hereof for all purposes, whether or not payment on this bond shall be overdue, and neither the Town nor the Paying Agent shall be affected by any notice or other infonnation to the contrary. This bond may be transferred or exchanged, at the principal operations office of the Paying Agent in Denver, Colorado, or at such other location as identified by the Paying Agent, for a like aggregate principal amount of the Bonds of other authorized denominations ($5,000 or any integral multiple thereof) of the same maturity and interest rate, upon payment by the transferee of a transfer fee, any tax or governmental charge required to be paid with respect to such transfer or exchange and any cost of printing bonds in connection therewith. The Bonds are special, limited obligations of the Town payable solely from and secured solely by the sources provided in the Ordinance and shall not constitute a debt of the Town within 02-7062.02 2 . . the meaning of any constitutional or statutory limitation. Pursuant to the Ordinance the Town irrevocably pledged for the ,payment of the principal of, premium, if any, and interest on the Bonds at any time outstanding, and granted a first lien (but not necessarily an exclusive first lien) for such purpose on (i) all of the Town's Sales and Use Tax revenues required to be deposited in the Sales and Use Tax Capital Improvement Fund (the "Pledged Revenues"), and (ii) all moneys on deposit from time-to-time in the Sales and Use Tax Capital Improvement Fund. The Town is authorized to pledge and grant a lien, on a parity with the lien for the payment of the Bonds, on the Pledged Revenues and the moneys on deposit in the Sales and Use Tax Capital Improvement Fund for the payment of other bonds or obligations upon satisfaction of certain conditions set . forth in the Ordinance. This bond is issued under authority of Section 29-2-112, Colorado Revised Statutes, as amended. This bond, including the interest hereon, is payable solely from and secured solely by the special funds provided in the Ordinance and shall not constitute a debt of the Town within the meaning of any constitutional or statutory debt limitation or provision. THE ORDINANCE CONSTITUTES THE CONTRACT BETWEEN THE REGISTERED OWNER OF TIllS BOND AND THE TOWN. TInS BOND IS ONLY EVIDENCE OF SUCH CONTRACT AND, AS SUCH, IS SUBJECT IN ALL RESPECTS TO THE TERMS OF THE ORDINANCE, wmCH SUPERSEDES ANY INCONSISTENT STATEMENT IN TInS BOND. The Town agrees with the owner of this bond and with each and every person who may become the owner hereof: that it will keep and perform all the covenants and agreements contained in the Ordinance. The Ordinance may be amended or supplemented from time-to-time with or without the consent of the registered owners of the Bonds as provided in the Ordinance. It is hereby certified that all conditions, acts and things required by the constitution and laws of the State of Colorado, and the ordinances of the Town, to exist, to happen and to be performed, precedent to and in the issuance of this bond, exist, have happened and have been performed, and that the Bonds do not exceed any limitations prescribed by said Constitution or laws of the State of Colorado, or the ordinances of the Town. By virtue of and in full conformity with the Constitution of the State of Colorado; Title 11, Article 56, C.R.S.; and all other laws of the State of Colorado thereunto enabling, and pursuant to the duly adopted Bond Ordinance. Pursuant to ~11-56-107(6), C.R.S., such recital shall conclusively impart full compliance with all of the provisions of said statutes, and this Bond issued containing such recital is incontestable for any cause whatsoever after its delivery for value. This bond shall not be entitled to any benefit under the Ordinance, or become valid or obligatory for any purpose, until the Paying Agent shall have signed the certificate of authentication hereon. 02-7062.02 3 . . IN WITNESS WHEREOF, Town of Fraser, Colorado, has caused this bond to be signed in the name and on behalf of the Town with the manual or facsimile signature of the Mayor, to be sealed with the seal of the Town or a facsimile thereof and to be attested by the manual or facsimile signature of the Town Clerk. [MANUAL OR FACSIMILE SEAL] FRASER, COLORADO (Manual or Facsimile Signature) Mayor ATTEST: By (Manual or Facsimile Signature) Town Clerk CERTIFICATE OF AUTHENTICATION This is one of the Bonds descn'bed in the within-mentioned Ordinance. Bank One, Colorado, N.A, as Paying Agent By Authorized Representative Date of Authentication: 02-7062.02 4 ýÿ " , . . \ ~~\' ORDINANCE NO. IJ,(/J X- ~ AN ORDINANCE OF THE TOWN OF FRASER, COLORADO, AUTHORIZING THE ISSUANCE OF THE TOWN'S GENERAL OBLIGATION BONDS, SERIES 1998, IN THE AGGREGATE PRINCIPAL AMOUNT OF $600,000 FOR THE PURPOSES SET FORTH IN THE BALLOT QUESTION AUTHORIZING THE BONDS; PAYING THE COSTS OF ISSUANCE OF THE BONDS; PROVIDING FOR THE LEVY OF AD VALOREM TAXES FOR THE PAYMENT OF THE BONDS; PROVIDING THE FORM OF THE BONDS AND OTHER DETAILS WITH RESPECT TO THE BONDS AND THE PAYMENT THEREOF; APPROVING OTHER DOCUMENTS RELATING TO THE BONDS; AND DECLARING AN EMERGENCY. WHEREAS, the Town of Fraser, Grand County, Colorado (the "Town"), is a statutory town and political subdivision of the State of Colorado, duly organized and operating under the constitution and laws of the State of Colorado; and WHEREAS, pursuant to Section 31-15-302, Colorado Revised Statutes, the Town is authorized to issue general obligation bonds for various purposes, subject to obtaining voter approval of a ballot question authorizing such bonds; and WHEREAS, Article X, Section 20 of the Colorado Constitution provides that voter approval in advance is required for the creation of any direct or indirect debt or other multiple- fiscal year financial obligation whatsoever; and WHEREAS, pursuant to an election held on April 7, 1998, the electors of the Town voted in favor of the following ballot question (the ''Ballot Question"): SHALL THE TOWN OF FRASER DEBT BE INCREASED BY AN AMOUNT NOT TO EXCEED $600,000, WITH A MAXIMUM REPAYMENT COST OF $1,100,000, AND SHALL TOWN TAXES BE INCREASED BY $80,000 ANNUALLY FOR THE PURPOSE OF CONSTRUCTING AND IMPROVING STREETS AND PROVIDING FOR STORM DRAINAGE, INCLUDING ALL NECESSARY OR INCIDENTAL COSTS RELATED THERETO; SUCH DEBT TO BE ISSUED ONLY IN THE EVENT THAT TOWN ELECTORS APPROVE THE ISSUANCE OF SALES AND USE TAX REVENUE BONDS AT THE ELECTION HELD ON TIllS DATE AND THAT THE PRINCIPAL AMOUNT OF SUCH SALES AND USE TAX REVENUE BONDS BE REDUCED BY THE PRINCIPAL AMOUNT OF THE DEBT AUTHORIZED HEREIN; SUCH DEBT TO CONSIST OF THE ISSUANCE AND PAYMENT OF GENERAL OBLIGATION BONDS, WIllCH SHALL BEAR INTEREST AT A MAXIMUM NET EFFECTIVE INTEREST RATE NOT TO EXCEED 7.25% AND MATURE, BE SUBJECT TO REDEMPTION, WITH OR WITHOUT PREMIUM, AND BE ISSUED, DATED AND SOLD AT SUCH TIME OR TIMES, AT SUCH PRICES (AT, ABOVE OR BELOW PAR) AND IN SUCH MANNER AND 02-7063.01 1 . . . CONTAINING SUCH TERMS, NOT INCONSISTENT HEREWITH, AS THE BOARD OF TRUSTEES MAY DETERMINE; SHALL AD VALOREM PROPERTY TAXES BE LEVIED IN ANY YEAR, wrmOUT LIMITATION AS TO RATE OR AMOUNT OR ANY OTHER CONDmON, TO PAY THE PRINCIPAL OF, PRE~ IF ANY, AND INTEREST ON SUCH BONDS; AND SHALL ANY EARNINGS ON THE REVENUES FROM SUCH TAXES AND FROM THE INVESTMENT OF THE PROCEEDS OF SUCH BONDS CONSTITUTE A VOTER- APPROVED REVENUE CHANGE? WHEREAS, at the April 7, 1998 election the Town electors approved the issuance of the Sales and Use Tax Revenue Bonds and the Board has declared its intention to reduce by $600,000 the principal amount of Sales and Use Tax Revenue Bonds issued pursuant to said authorization in order to meet the condition established in the Ballot Question for the issuance of general obligation bonds; and WHEREAS, the Board has detennined that it is in the best interests of the Town and its residents to issue its General Obligation Bonds, Series 1998 (the "Bonds") for the purpose of providing funds for the Project defined herein; and WHEREAS, the Board has been presented with a proposal in the fonn of a Bond Purchase Agreement from George K. Baum & Company, of Denver, Colorado, to purchase the Bonds and the Board has detennined that the sale of the Bonds to the Underwriter is in the best interests of the Town and the residents thereof, and WHEREAS, no member of the Board has any potential conflicting interests in connection with the authorization, issuance, or sale of the Bonds, or the use of the proceeds thereof, and WHEREAS, there has been presented to this meeting of the Board the Preliminary Official Statement and the Bond Purchase Agreement (all as defined hereafter); and WHEREAS, the Board desires to authorize the issuance and sale of the Bonds and the execution of the foregoing documents; NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO: Section 1. Definitions. The following terms shall have the following meanings as used in this Ordinance: "Act' means Part 3 of Article 15 of Title 31, Colorado Revised Statutes, as amended, or any successor thereto. "Ballot QuestioTl' means the question approved by Town voters quoted and defined as such in the preambles hereto. "Beneficial Owner' means any person for which a Participant acquires an interest in the Bonds. 02-7063.01 2 ýÿ , . . "Board' means the Board of Trustees of the Town, and any successor body. "Bond Accounf' means the "Series 1998 General Obligation Bond Account" created in the section hereof entitled ''Establishment of Accounts" and for which a separate tax levy is made to satisfY the obligations of the Bonds. "Bond Counsel' means (a) as of the date of issuance of the Bonds, Kutak Rock, and (b) as of any other date, Kutak Rock or such other attorneys selected by the Town with nationally recognized expertise in the issuance of municipal bonds. ''Bond Obligation" means, as of any date, the principal amount of the Bonds Outstanding as of such date. ''Bond Purchase Agreement' means the Bond Purchase Agreement dated August 19, 1998, pursuant to which the Underwriter has agreed to purchase the Bonds at the price and on the terms set forth therein. ''BondS' means the Bonds authorized by the Section hereof entitled "Authorization and Purpose of Bonds. " ''Business Day' means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State are authorized or obligated by law or executive order to be closed for business. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein shall be deemed to include the United States Treaswy Regulations proposed or in effect thereunder and applicable to the Bonds or the use of proceeds thereot: unless the context clearly requires otherwise. "County" means the County of Grand in the State. ''Defeasance Securitie~' means bills, certificates of indebtedness, notes, bonds or similar securities which are direct non-callable obligations of the United States of America or which are fully and unconditionally guaranteed as to the timely payment of principal and interest by the United States of America, to the extent such investments are Pennitted Investments. ''DTC'' means The Depository Trust Company, New York, New York, and its successors in interest and assigns. "Event of Default' means any of the events specified in the Section hereof entitled ''Events of Default." ''Interest Payment Date" means each June 1 and December 1, commencing December 1, 1998. "Official Statemenf' means the:final version of the Preliminary Official Statement. 02-7063.01 3 ýÿ . . "Ordinance" means this Ordinance, including any amendments or supplements hereto. "Outstanding' means, as of any date, all Bonds issued and delivered by the Town, except the following: (a) Any Bond cancelled by the Town or the Paying Agent, or otherwise on the Town's beha1:t: at or before such date~ (b) Any Bond held by or on behalf of the Town; (c) Any Bond for the payment or the redemption of which moneys or Defeasance Securities sufficient to meet all of the payment requirements of the principal ot: premium, if any, and interest on such Bond to the date of maturity or prior redemption thereot: shall have theretofore been deposited in trust for such purpose in accordance with the Section hereof entitled ccDefeasance"~ and (d) Any lost, apparently destroyed, or wrongfully taken Bond in lieu of or in substitution for which another bond or other security shall have been executed and delivered. "Owner" means the Person or Persons in whose name or names a Bond is registered on the registration books maintained by the Paying Agent pursuant hereto. "Participant' or ''ParticipantS'' means any broker-dealer, bank, or other financial institution from time to time for which DTe or another Depository holds the Bonds. ''Paying Agent' means Bank One, Colorado, N.A., Denver, Colorado, and its successors in interest or assigns approved by the Town. ''Permitted InvestmentS" means any investment in which funds of the Town may be invested under the laws of the State at the time of such investment. ''Person'' means a corporation, firm, other body corporate, partnership, association or individual and also includes an executor, administrator, trustee, receiver or other representative appointed according to law. ''Preliminary Official Statemenf' means the Preliminary Official Statement concerning the Bonds and the Town. "Projecf' means any purpose for which proceeds of the Bonds may be expended under the Act and the Ballot Question. "Project Account' means the "Series 1998 General Obligation Bond Project Account" created in the section hereof entitled "Establishment of Accounts." "Project Cost~' means the Town's costs properly attributable to the Project or any part thereot: including without limitation: (a) the costs oflabor and materials, machinery, furnishings, equipment, and the restoration of property damaged or destroyed in connection with construction 02-7063.01 4 . . work~ (b) the costs of surveys, appraisals, plans, designs, specifications, and estimates; (c) the costs, fees, and expenses of printers, engineers, architects, financial consultants, legal advisors, or other agents or employees~ (d) the costs of issuing the Bonds; (e) the costs of demolition, removal, and relocation; and (f) all other lawful costs as determined by the Board. ''Record Date" means, with respect to each Interest Payment Date, the fifteenth (15th) day of the month immediately preceding the month (whether or not such day is a Business Day) in which such Interest Payment Date occurs. "State" means the State of eo lor ado. "Town" means the Town of Fraser, Grand County, Colorado. "Underwriter" means George K. Baum & Company, Denver, Colorado. Section 2. Allthoriz.ation and Purpose of Bonds. Pursuant to and in accordance with the Act and the Ballot Question, the Town hereby authorizes, and directs that there shall be issued, the ''Town of Fraser General Obligation Bonds, Series 1998:' in the aggregate original principal amount ofS600,OOO for the purpose of paying the Project Costs. Section 3. Bond Dettlils. (a) Registered Form, Denominations, Original Dated Date and Numbering. The Bonds shaD be issued as fully registered bonds, shall be dated as of an original dated date of August 15, 1998, and shall be registered in the names of the Persons identified in the registration books maintained by the Paying Agent pursuant hereto. The Bonds shall be issued in denominations of $5,000 in principal amount or any integral multiple thereof The Bonds shall be consecutively numbered, beginning with the number one, preceded by the letter ''R,'' (b) Maturity Dates, Principal Amounts and Interest Rates. The Bonds shall mature on December 1 of the years and in the principal amounts, and shall bear interest at the rates per annum (calculated based on 360-day year of twelve 30-day months), set forth below: 02-7063.01 5 . . Maturity Principal Amount Interest Rate 1999 $10,000 ~'_% 2000 20,000 -- 2001 20,000 -- 2002 25,000 -- 2003 25,000 -- 2004 25,000 -- 2005 25,000 -- 2006 30,000 -- 2007 30,000 -- 2008 30,000 -- 2009 30,000 -- 2010 35,000 -- 2011 35,000 -- 2017 260,000 -- (c) Accrual and Dates of Payment of Interest. Interest on the Bonds shall accrue at the rates set forth above from the later of the original dated date or the latest Interest Payment Date (or in the case of defaulted interest, the latest date) to which interest has been paid in full and shall be payable on each Interest Payment Date. (d) Manner and Form of Payment. Principal of and premium, if any, on each Bond shall be payable to the Owner thereof upon presentation and surrender of such Bond at the principal operations office of the Paying Agent in the city identified in the definition of Paying Agent in the Section hereof entitled "Definitions" or at such other office of the Paying Agent designated by the Paying Agent for such purpose. Interest on each Bond shall be payable by check or draft of the Paying Agent mailed on each Interest Payment Date to the Owner thereof as of the close of business on the corresponding Record Date; provided that, interest payable to any Owner may be paid by any other means agreed to by such Owner and the Paying Agent that does not require the Town to make moneys available to the Paying Agent earlier than otherwise required hereunder or increase the costs borne by the Town hereunder. All payments of the principal of: premium, ifany, and interest on the Bonds shall be made in lawful money of the United States of America. (e) Book-Entry Registration. Notwithstanding any other provision hereot: the Bonds shall be delivered only in book-entry form registered in the name of Cede & eo., as nominee ofDTC acting as securities depository of the Bonds and principal ot: premium, ifany, and interest on the Bonds shall be paid by wire transfer to DTC; provided, however, if at any time the Paying Agent determines, and notifies the Town of its determination, that DTe is no longer able to act as, or is no longer satisfactorily perfonning its duties as, securities depository for the Bonds, the Paying Agent may, at its discretion, either (i) designate a substitute securities 02-7063.01 6 . . depository for DTC and reregister the Bonds as directed by such substitute securities depository or (0) tenninate the book-entry registration system and reregister the Bonds in the names of the Beneficial Owners thereof provided to it by DTC. Neither the Town nor the Paying Agent shall have any liability to DTC, Cede & eo., any substitute securities depository, any Person in whose name the Bonds are reregistered at the direction of any substitute securities depository, any Beneficial Owner of the Bonds or any other Person for (A) any determination made by the Paying Agent pursuant to the proviso at the end of the immediately preceding sentence or (B) any action taken to implement such determination and the procedures related thereto that is taken pursuant to any direction of or in reliance on any infonnation provided by DTC, Cede & Co., any substitute securities depository or any Person in whose name the Bonds are reregistered. Section 4. Redemption of Bonds Prior to Maturity. (a) Optional Redemption. The Bonds maturing on and before December 1, 2008 are not subject to redemption prior to their respective maturity dates. The Bonds matwing on and after December 1, 2009 are subject to redemption prior to maturity at the option of the Town, in whole or in part in integral multiples of $5,000, and if in part in such order of matlnities as the Town shall determine and by lot within a maturity, on December 1, 2008 and on any date thereafter, at a redemption price equal to the principal amount thereof (with no redemption premium), plus accrued interest to the redemption date. (b) Mandatory Sinking Fund Redemption. The Bonds maturing on December 1, 2017 are subject to mandatory sinking fund redemption by lot on December 1 of the years and in the principal amounts specified below, at a redemption price equal to the principal amount thereof (with no redemption premium), plus accrued interest to the redemption date: Years Principal Amount 2012 $40,000 2013 40,000 2014 40,000 2015 45,000 2016 45,000 2017 (final maturity) 50,000 At its option, to be exercised on or before the forty fifth day next preceding each sinking fund redemption date, the Town may (i) deliver to the Paying Agent for cancellation any Bonds with the same maturity date as the Bonds subject to such sinking fund redemption and (ii) receive a credit in respect of its sinking fund redemption obligation for any Bonds with the same maturity date as the Bonds subject to such sinking fund redemption which prior to such date have been redeemed (otherwise than through the operation of the sinking fund) and cancelled by the Paying Agent and not theretofore applied as a credit against any sinking fund redemption obligation Each Bond so delivered or previously redeemed shall be credited to the 02.7063.01 7 . . Paying Agent at the principal amount thereof to the obligation of the Town on such sinking fund redemption date, and the principal amount of Bonds to be redeemed by operation of such sinking fund on such date shall be accordingly reduced. (c) Redemption Procedures. Notice of any redemption of Bonds shall be given by the Paying Agent in the name of the Town by sending a copy of such notice by first-class, postage prepaid mail, not less than. 30 days prior to the redemption date, to the Owner of each Bond being redeemed. Such notice shall specify the number or numbers of the Bonds so to be redeemed (if redemption shall be in part) and the redemption date. If any Bond shall have been duly called for redemption and it: on or before the redemption date, there shall have been deposited with the Paying Agent in accordance with this Ordinance funds sufficient to pay the redemption price of such Bond on the redemption date, then such Bond shall become due and payable at such redemption date, and from and after such date interest will cease to accrue thereon. Failure to deliver any redemption notice or any defect in any redemption notice shall not affect the validity of the proceeding for the redemption of Bonds with respect to which such failure or defect did not occur. Any Bond redeemed prior to its maturity by prior redemption or otherwise shall not be reissued and shall be cancened. Section 5. Security for the Bonds. (a) General Obligations. The Bonds shall be general obligations of the Town and the full faith and credit of the Town are pledged for the punctual payment of the principal of and interest on the Bonds. The Bonds shall not constitute a debt or indebtedness of the County, the State or any political subdivision of the State other than the Town. (b) Levy of Ad Valorem Taxes. For the purpose of paying the principal and of and interest on the Bonds when due, respective1y~ the Board shall SJ,Mual1y determine and certifY to the Board of County Commissioners of the County, a rate of levy for general ad valorem taxes, without limitation as to rate or amount, on all of the taxable property in the Town, sufficient to pay the principal of and interest on the Bonds when due, respectively, whether at maturity or upon earlier redemption. (c) Application of Proceeds of Ad Valorem Taxes. The general ad valorem taxes levied pursuant to subsection (b) of this Section, when collected, shall be deposited in the Bond Account and shall be applied solely to the payment of the principal of and interest on the Bonds and for no other purpose until the Bonds, including principal and interest, are fully paid, satisfied and discharged. (d) Appropriation and Budgeting of Proceeds of Ad Valorem Taxes. Moneys received from the general ad valorem taxes levied pursuant to subsection (b) of this Section in an amount sufficient to pay the principal of and interest on the Bonds when due, respectively, are hereby appropriated for that purpose, and all amounts required to pay the principal of and interest on the Bonds due, respectively, in each year shall be included in the annual budget and appropriation resolution to be adopted and passed by the Board for such year. 02-7063.01 8 ýÿ . . (e) Use or Advance of Other Legally Available Moneys. Nothing herein shall be interpreted to prohibit or limit the ability of the Town to use legally available moneys other than the proceeds of the general ad valorem property taxes levied pursuant to subsection (b) of this Section to pay all or any portion of the principal of or interest on the Bonds. If and to the extent such other legally available moneys are used to pay the principal of or interest on the Bonds, the Town may, but shall not be required to, (i) reduce the amount of taxes levied for such purpose pursuant to subsection (b) of this Section or (ii) use proceeds of taxes levied pursuant to subsection (b) of this Section to reimburse the fund or account from which such other legally available moneys are withdrawn for the amount withdrawn from such fund or account to pay the principal of or interest on the Bonds. If the Town selects alternative (n) in the immediately prec.eding sentence, the taxes levied pursuant to subsection (b) of this Section shall include amounts sufficient to fund the reimbursement. (t) Certification to County Commissioners. It is hereby declared that, if the Town does not otherwise determine and cert:ifY to the Board of County Commissioners of the eounty a rate of levy for general ad valorem property taxes as required by subsection (b) of this Section, the foregoing provisions of this Section shall constitute a certificate from the Board to the Board of eounty Commissioners of the eounty showing the aggregate amount of ad valorem taxes to be levied by the Board of County Commissioners of the County from time to time, as required by law, for the purpose of paying the principal of and interest on the Bonds when due. (g) Deposit of Moneys to Pay Bonds with, and Payment of Bonds by, Paying Agent. No later than the Business Day immediately preceQ1"B each date on which a payment of principal 0( premium, ifany, or interest on the Bonds is due, the Town, from moneys in the Bond Account or other legally available moneys, shall deposit moneys with the Paying Agent in an amount sufficient to pay the principal ot: premium, if any, and interest on the Bonds due on such date. The Paying Agent shall use the moneys so deposited with it to pay the principal ot: premium, if any, and interest on the Bonds when due. Section 6. Form of Bonds. The Bonds shall be in substantially the form set forth in Appendix A hereto, with such changes thereto, not inconsistent herewith, as may be necessary or desirable and approved by the officials of the Town executing the same (whose manual or facsimile signatures thereon shall constitute conclusive evidence of such approval). All covenants, statements, representations and agreements contained in the Bonds are hereby approved and adopted as the covenants, statements, representations and agreements of the Town. Although attached as an appendix for the convenience of the reader, Appendix A is an integral part of this Ordinance and is incorporated herein as if set forth in full in the body of this Ordinance. Section 7. Execution, Authentictdion and Delivery of the Bonds. (a) Execution. The Bonds shall be executed in the name and on behalf of the Town with the manual or facsimile signature of the Mayor, shall bear a manual or facsimile of the seal of the Town and shall be attested by the manual or facsimile signature of the Town Clerk both of whom are hereby authorized and directed to prepare and execute the Bonds in accordance with the requirements hereof Should any officer whose manual or facsimile 02-7063.01 9 . . signature appears on the Bonds cease to be such officer before delivery of any Bond, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes. (b) Authentication. When the Bonds have been duly executed, the officers of the Town are authorized to, and shall, deliver the Bonds to the Paying Agent for authentication. No Bond shall be secured by or entitled to the benefit of this Ordinance, or shall be valid or obligatory for any purpose, unless the certificate of authentication of the Paying Agent has been manually executed by an authorized signatory of the Paying Agent. The executed certificate of authentication of the Paying Agent upon any Bond shall be conclusive evidence, and the only competent evidence, that such Bond has been properly authenticated hereunder. (c) Delivery. Upon the authentication of the Bonds, the Paying Agent shall deliver the same to DTC in accordance with the provisions of the DTC Blanket Letter of Representations. Upon receipt of the agreed purchase price of the Bonds from the Underwriter and issuance of the approving opinion of Bond Counsel, DTC shall be directed to release the Bonds to the Beneficial Owners. Section 8. Registration, Transfer and Exchange of the Bonds. (a) Registration. The Paying Agent shall maintain registration books in which the ownership, transfer and exchange of Bonds shall be recorded. The person in whose name any Bond shall be registered on such registration books shall be deemed to be the absolute owner thereof for all purposes, whether or not payment on any Bond shall be overdue, and neither the Town nor the Paying Agent shall be affected by any notice or other information to the contrary. (b) Transfer and &change. The Bonds may be transferred or exchanged, at the principal office of the Paying Agent at the location identified in the definition of Paying Agent in the section hereof entitled "Definitions," for a like aggregate principal amount of Bonds of other authorized denominations of the same maturity and interest rate, upon payment by the transferee of a transfer fee, any tax or governmental charge required to be paid with respect to such transfer or exchange and any cost of printing bonds in connection therewith. Upon surrender for transfer of any Bond, duly endorsed for transfer or accompanied by an assignment duly executed by the Owner or his or her attorney duly authorized in writing, the Town shall execute and the Paying Agent shall authenticate and deliver in the name of the transferee a new Bond. (c) Limitations on Transfer. The Town and Paying Agent shall not be required to issue or transfer any Bonds: (i) during a period beginning at the close of business on the Record Date and ending at the opening of business on the first Business Day following the ensuing interest payment date, or (ii) during the period beginning at the opening of business on a date forty-five (45) days prior to the date of any redemption of Bonds and ending at the opening of business on the first Business Day following the day on which the applicable notice of redemption is mailed. The Paying Agent shall not be required to transfer any Bonds selected or called for redemption. 02-7063.01 10 ýÿ . . . Section 9. Replacement of Lost, Destroyed or Stolen Bonds. If any Bond shall become lost, apparently destroyed, stolen or wrongfully taken, it may be replaced in the form and tenor of the lost, destroyed, stolen or taken bond and the Town shall execute and the Paying Agent shall authenticate and deliver a replacement Bond upon the Owner furnishing, to the satisfaction of the Paying Agent: (a) proof of ownership (which shall be shown by the registration books of the Paying Agent), (b) proof of loss, destruction or theft, (c) an indemnity to the Town and the Paying Agent with respect to the Bond lost, destroyed or taken, and (d) payment of the cost of preparing and executing the new Bond. Section 10. Establishment of Accounts. There is hereby created the Bond Account and the Project Account, each of which may be established as a line item account or sub-account with the appropriate fund of the Town. Section 11. Application of Bond Proceeds. Upon payment to the Town of the purchase price of the Bonds in accordance with the Bond Purchase Agreement, the proceeds received by the Town from the sale of the Bonds shall be applied as a supplemental appropriation by the Town as follows: (a) accrued interest, if any, on the Bonds shall be deposited by the Town into the Bond Account; and (b) all remaining proceeds shall be deposited to the Project Account. Section 12. Bond Account. (a) Use of Moneys in Bond Account. Moneys deposited in the Bond Account shall be used solely for the purpose of paying the principal ot: premium if any, and interest on the Bonds. (b) Investments. Moneys deposited in the Bond Account may be invested or deposited in securities or obligations which are Permitted Investments. The investment of moneys deposited in the Bond Account shall, however, be subject to the covenants and provisions of the section hereof entitled ''Covenants Regarding Exclusion of Interest on Bonds from Gross Income for Federal Income Tax Purposes." Except to the extent otherwise required by such section, all interest income from the investment or reinvestment of moneys deposited in the Bond Account shall remain in and become part of the Bond Account. Section 13. Project Account (a) Use of Moneys in Project Accmmt. All moneys deposited in the Project Account shall be applied solely to the payment of the Project Costs. Upon the determination of the Board that all Project eosts have been paid or are detenninable, any balance remaining in the Project Account (less any amounts necessary to pay Project Costs not then due and owing) shall be transferred to the Bond Account. 02-7063.01 11 . . (b) Investments. Moneys deposited in the Project Account may be invested or deposited in securities or obligations which are Permitted Investments. The investment of moneys deposited in the Project Account shall, however, be subject to the covenants and provisions of the section hereof entitled "Covenants Regarding Exclusion of Interest on Bonds from Gross Income for Federa1lncome Tax Purposes." Except to the extent otherwise required by such section, interest income from the investment or reinvestment of moneys deposited in the Project Account shall remain in and become part of the Project Account. Section 14. Various Findings, Determinations, Declfll'ations and Covenants. The Board, having been fully infonned of and having considered all the pertinent facts and circumstances, hereby finds, determines, declares and covenants with the Owners of the Bonds that: (a) Voter approval of the Ballot Question was obtained in accordance with all applicable provisions of law and, in accordance with the Ballot Question (i) the principal amount of the Bonds will not exceed $600,000, (Ii) the maximum repayment cost of the Bonds will not exceed $1,100,000, and (iii) the maximum annual repayment cost of the Bonds will not exceed $80,000; (b) The net effective interest rate on the Bonds as sold to the Underwriter pursuant to the Bond Purchase Agreement is less than the maximum net effective interest rate authorized in the Ballot Question; (c) The issuance of the Bonds will not cause the Town to exceed its debt limit under applicable State law; (d) The issuance of the Bonds and all procedures undertaken incident thereto are in full compliance and conformity with all applicable requirements, provisions and limitations prescribed by the Constitution and laws of the State, including the Act, and all conditions and limitations of the Act and other applicable law relating to the issuance of the Bonds have been satisfi~ and (e) It is in the best interest of the Town and its residents that the Bonds be authorized, sold, issued and delivered at the time, in the maImer and for the purposes provided in this Ordinance. Section 15. Federal Income Tax Covenants. For purposes of ensuring that the interest on the Bonds is and remains excluded from gross income for federal income tax purposes, the Town hereby covenants that: (a) Prohibited Actions. The Town will not use or permit the use of any proceeds of the Bonds or any other funds of the Town from whatever source derived, directly or indirectly, to acquire any securities or obligations and shall not take or permit to be taken any other action or actions, which would cause any Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code, or would otherwise cause the interest on any Bond to be includt'ble in gross income for federal income tax purposes. 02-7063.01 12 ýÿ . . (b) Affirmative Actions. The Town will at all times do and perfonn all acts permitted by law that are necessary in order to assure that interest paid by the Town on the Bonds shall not be includible in gross income for federal income tax purposes under the Code or any other valid provision of law. In particular, but without limitation, the Town represents, warrants and covenants to comply with the following rules unless it receives an opinion of Bond Counsel stating that such compliance is not necessary: (i) gross proceeds of the Bonds and the Project will not be used in a manner that will cause the Bonds to be considered "private activity bonds" within the meaning of the Code; (ii) the Bonds are not and will not become directly or indirectly "federally guaranteed"; and (ill) the Town will timely file an Internal Revenue Service Fonn 8038-0 with respect to the Bonds, which shall contain the information required to be filed pursuant to Section 149(e) of the Code. (c) Designation of Bonds as Qualified Tax-Exempt Obligations. The Town hereby designates the Bonds as qualified tax-exempt obligations within the meaning of Section265(bX3) of the Code. The Town covenants that the aggregate face amount of all tax-exempt obligations issued by the Town, together with governmental entities which derive their issuing authority from the Town or are subject to substantial control by the Town, shall not be more than $10,000,000 during calendar year 1998. The Town recognizes that such tax- exempt obligations include notes, leases, loans and warrants, as well as bonds. The Town further recognizes that any bank, thrift institution or other financial institution that owns the Bonds will rely on the Town's designation of the Bonds as qualified tax-exempt obligations for the purpose of avoiding the loss of 1 OOO~ of any otherwise available interest deduction attIibutable to such institution's tax-exempt holdings. Section 16. Defeasance. Any Bond shall not be deemed to be Outstanding hereunder ifit shall have been paid and cancelled or if Defeasance Securities shall have been deposited in trust for the payment thereof (whether upon or prior to the maturity of such Bond, but if such Bond is to be paid prior to maturity, the Town shall have given the Paying Agent irrevocable directions to give notice of redemption as required by this Ordinance, or such notice shall have been given in accordance with this Ordinance). In computing the amount of the deposit described above, the Town may include the maturing principal of and interest to be earned on the Defeasance Securities. Ifless than all the Bonds are to be defeased pursuant to this Section, the Town, in its sole discretion, may select which of the Bonds shall be defeased. Section 17. Events of Default Each of the following events constitutes an Event of Default: (a) Nonpayment of Principal or Interest. Failure to make any payment of principal of or interest on the Bonds when due; (b) Breach or Nonperformance of Duties. Breach by the Town of any material covenant set forth herein or failure by the Town to perfonn any material duty imposed on it hereunder and continuation of such breach or failure for a period of 60 days after receipt by the Superintendent of the Town of written notice thereof from the Paying Agent or from the Owners of at least 10% of the aggregate amount of the Bond Obligation, provided that such 60 02-7063.01 13 ýÿ . . day period shall be extended so long as the Town has commenced and continues a good faith effort to remedy such breach or failure~ or (c) Bankruptcy or Receivership. An order of decree by a court of competent jurisdiction declaring the Town bankrupt under federal bankruptcy law or appointing a receiver ofall or any material portion of the Town's assets or revenues is entered with the consent or acquiescence of the Town or is entered without the consent or acquiescence of the Town but is not vacated, discharged or stayed within 30 days after it is entered. Section 18. Remediesfor Events of Default (a) Remedies. Upon the occurrence and continuance of any Event ofDefiwlt, the Owners of not less than 25% of the aggregate amount of the Bond Obligation, including, without limitation, a trustee or trustees therefor may proceed against the Town to protect and to enforce the rights of any Owners under this Ordinance by mandamus, injunction or by other suit, action or special pr()CN'Aing.~ in equity or at law, in any court of competent jurisdiction: (i) for the payment of interest on any installment of principal of any Bond that was not paid when due at the interest rate borne by such Bond, (ii) for the specific perfonnance of any covenant contained herein, (Hi) to enjoin any act that may be unlawful or in violation of any right of any Owner of any Bond, (iv) for any other proper legal or equitable remedy or (v) any combination of such remedies or as otherwise may be authorized by applicable laW; provided, however, that acceleration of any amount not yet due on the Bonds according to their terms shall not be an available remedy. All such pr~ings at law or in equity shall be instituted, had and maintained for the equal benefit of all Owners of Bonds then Outstanding. (b) Failure to Pursue Remedies Not a Release; Rights Cumulative. The failure of any Owner of any Outstanding Bond to proceed in accordance with subsection (a) of this Section shall not relieve the Town of any liability for failure to perform or carry out its duties under this Ordinance. Each right or privilege of any such Owner (or trustee therefor) is in addition and is cumulative to any other right or privilege, and the exercise of any right or privilege by or on behalf of any Owner shall not be deemed a waiver of any other right or privilege of such Owner. Section 19. Amendment of Ordinance. (a) Amendments Permitted without Notice to or Consent of Owners. The Town may, without the consent of or notice to the Owners of the Bonds, adopt one or more resolutions amending or supplementing this Ordinance (which resolutions shall thereafter become a part hereof) for anyone or more or all of the following purposes: (i) to cure any ambiguity or to cure, correct or supplement any defect or inconsistent provision of this Ordinance; (ii) to subject to this Ordinance or pledge to the payment of the Bonds additional revenues, properties or collateral; 02-7063.01 14 ýÿ . . (ill) to institute or terminate a book-entry registration system for the Bonds or to facilitate the designation of a substitute securities depository with respect to such a system; (iv) to maintain the then existing or to secure a higher rating of the Bonds by any nationally recognized securities rating agency~ or (v) to make any other change that does not materially adversely affect the Owners of the Bonds. (b) Amendments Requiring Notice to and Consent of Owners. Except for amendments pennitted by subsection (a) of this Section, this Ordinance may only be amended (i) by a resolution of the Town amending or supplementing this Ordinance (which, after the consents required therefor, shall become a part hereof) and (n) with the written consent of the Owners of at least 66-2/3% of the Bond Obligation; provided that any amendment that makes any of the following changes with respect to any Bond shall not be effective without the written consent of the Owner of such Bond: (A) a change in the maturity of such Bond; (B) a reduction of the interest rate on such Bond; (C) a change in the terms of redemption of such Bond; (0) a delay in the payment of principal ot: premium, if any, or interest on such Bond; (E) a reduction of the Bond Obligation the consent of the Owners of which is required for an amendment to this Ordinance; or (F) the establishment of a priority or preference for the payment of any amount due with respect to any other Bond over such Bond. (c) Procedure for Notifying and Obtaining Consent of Owners. Whenever the consent of an Owner or Owners of Bonds is required under subsection (b) of this Section, the Town shall mail a notice to such Owner or Owners at their addresses as set forth in the registration books mait}tained by the Paying Agent and to the Underwriter, which notice shall briefly descn"be the proposed amendment and state that a copy of the amendment is on file in the office of the Town for inspection. Any consent of any Owner of any Bond obtained with respect to an amendment shall be in writing and shall be final and not subject to withdrawal, rescission or modification for a period of 60 days after it is. delivered to the Town unless another time period is stated for such purpose in the notice mailed pursuant to this subsection. Section 20. Appointment and Du.ties of Paying Agent The Paying Agent identified in the Section hereof entitled "Definitions" is hereby appointed as paying agent, registrar and authenticating agent for the Bonds unless and until the Town removes it as such and appoints a successor Paying Agent, in which event such successor shall automatically succeed to the duties of the Paying Agent hereunder and its predecessor shall immediately turn over all its records regarding the Bonds to such successor. The Paying Agent shall agree to perform all duties and to take all actions assigned to it hereunder in accordance with the terms hereof. The appointment and acceptance of the duties of Paying Agent hereunder may be affected through the execution of a certificate or agreement by the Paying Agent. Section 21. Approval of Related Docu.ments. The Board hereby ratifies and approves the distribution and use in connection with the offering of the Bonds of the Preliminary Official Statement relating to the Bonds in the form provided to the Board; authorizes and directs the 02-7063.01 15 . . preparation ot: and authorizes and directs the execution by the Mayor of, an Official Statement for use in connection with the sale of the Bonds in substantially the form of the Preliminary Official Statement, with such changes therein, if any, not inconsistent herewith, as are approved by the Town; and approves, and authorizes and directs the execution by the Mayor, attested by the Town Clerk, of the Bond Purchase Agreement in substantially the form provided to the Board, with such changes therein, not inconsistent herewith, as are approved by the Mayor (whose signature thereon shall constitute conclusive evidence of such approval). The Mayor, the Town Clerk and all other appropriate officers of the Board are also hereby authorized and directed to execute an undertaking to facilitate compliance with Securities and Exchange Commission Rule 15c2-12 (17 C.F.R ~ 240. 15c2-12), a ''Tax Compliance Certificate" or similar certificate describing the Town's expectations regarding the use and investment of proceeds of the Bonds and other moneys and the use of the Project, an Internal Revenue Service Form 8038-G with respect to the Bonds, a Blanket Letter of Representations with DTe governing the book- entry registration system for the Bonds and all other documents and certificates necessary or desirable to effectuate the issuance or administration of the Bonds, the investment of proceeds of the Bonds and the transactions contemplated hereby. Section 22. llIltification of Prior Actions. All actions heretofore taken (not inconsistent with the provisions of this Ordinance or the Act) by the Board or by the officers and employees of the Town directed toward the issuance of the Bonds for the purposes herein set forth are hereby ratified, approved and confirmed. Section 23. Events Occurring on Days That Are Not Business Days. Except as otherwise specifically provided herein with respect to a particular payment, event or action, if any payment to be made hereunder or any event or action to occur hereunder which, but for this section, is to be made or is to occur on a day that is not a Business Day shall instead be made or occur on the next succeeding day that is a Business Day. Section 24. Hetldings. The headings to the various sections and paragraphs to this Ordinance have been inserted solely for the convenience of the reader, are not a part of this Ordinance, and shall not be used in any manner to interpret this Ordinance. Section 25. Ordinance Irrepealable. After any of the Bonds have been issued, this Ordinance shall constitute a contract between the Owners and the Town, and shall be and remain irrepealable until the Bonds and the interest accruing thereon shall have been fully paid, satisfied, and discharged, as herein provided. Section 26. Severability. It is hereby expressly declared that all provisions hereof and their application are intended to be and are severable. In order to implement such intent, if any provision hereof or the application thereof is determined by a court or administrative body to be invalid or unenforceable, in whole or in part, such determination shall not affect, impair or invalidate any other provision hereof or the application of the provision in question to any other situation; and if any provision hereof or the application thereof is determined by a court or administrative body to be valid or enforceable only if its application is limited, its application shall be limited as required to most fully implement its purpose. 02-7063.01 16 . . Section 27. Repealer. All orders, bylaws, ordinances, and resolutions of the Town, or parts thereof, inconsistent or in conflict with this Ordinance, are hereby repealed to the extent only of such inconsistency or conflict. Section 28. Emergency Declaration. It is hereby found and determined by the Board that: (i) there exists an immediate need for the Project, in order to properly and safely serve the Town and its residents; and (ii) current interest rates are favorable, allowing the Town to issue the Bonds at reasonable interest rates, and such rates may change at any time. As a result of the foregoing, the Board hereby declares that an emergency exists, and that this Ordinance is necessary to the immediate preservation of the public health and safety, all in accordance with ~31-16-105, C.RS. Section 29. Effective Date; Recording and Allthentication. This Ordinance shall be in full force and effect immediately upon adoption by the Board. This Ordinance shall be recorded in a book kept for that purpose, shall be authenticated by the signatures of the Mayor and the Town Clerk, and shall be published in accordance with law. PASSED, ADOPTED AND APPROVED AS AN EMERGENCY ORDINANCE this 19th day of August, 1998. TOWN OF FRASER, COLORADO By Mayor [SEAL] Attest: By Town Clerk 02-7063.01 17 I . . I APPENDIX A I FORM OF BOND UNITED STATES OF AMERICA I STATE OF COLORADO I No.R- $ TOWN OF FRASER GRAND COUNTY, COLORADO GENERAL OBLIGATION BOND SERIES 1998 I , INTEREST RATE: MATURITY DATE: ORIGINAL DATED DATE: CUSIP: I - % December 1, _ August 15, 1998 I I REGISTERED OWNER: eede& eo. I Tax Identification Number: I PRINCIPAL SUM: I DOLLARS I I THE TOWN OF FRASER, COLORADO (the ''Town''), a duly organized and validly existing town and political subdivision of the State of Colorado (the "State"), for value received, hereby promises to pay to the order of the registered owner named above, or registered assigns, the principal sum stated above on the maturity date stated above, with interest on such principal sum from the original dated date stated above at the interest rate per annlJ11l stated above (calculated based on a 360-day year of twelve 30-day months), payable on June 1 and December 1 of each year, commencing December 1, 1998. The principal of and premium, ifany, on this bond are payable to the registered owner hereof upon presentation and surrender of this bond at the principal operations office of Bank One, Colorado, N.A., as Paying Agent (the "Paying Agent"), in Denver, eolorado, or at such other office of the Paying Agent designated by the Paying Agent for such purpose. Interest on this bond is payable by check or draft of the Paying Agent mailed on the Interest Payment Date to the registered owner hereof as of the first day of the month (whether or not such day is a Business Day, as defined in the below-mentioned Ordinance) in which the Interest Payment Date occurs~ provided that, interest payable to the registered owner of this bond may be paid by any other means agreed to by such registered owner and the Paying Agent that does not require the Town to make moneys available to the Paying Agent earlier than otherwise required under the Ordinance or increase the costs borne by the Town under the Ordinance; provided further, that, so long as Cede & Co. is the registered owner of this bond, the principal ot: premium, if any, and interest on this bond shall be paid by wire 02-7063.01 1 ýÿ . . . transfer to Cede & Co. Any payment of principal of or interest on this bond that is due on a day that is not a Business Day (as defined in the below-mentioned Ordinance) shall be made on the next succeeding day that is a Business Day with the same effect as if made on the day on which it was originally scheduled to be made. All payments of principal ot: premium, if any, and interest on this bond shall be made in lawful money of the United States of America. This bond is part of an issue of general obligation bonds of the Town designated Town of Fraser, Grand County, eolorado, General Obligation Bonds, Series 1998, issued in the principal amount of $600,000 (the "Bonds"). The Bonds have been issued pursuant to, under the authority of: and in full conformity with, the Constitution and the laws of the State, including, in particular, Part 3 of Article 15 of Title 31, Colorado Revised Statutes, as amended (the "Act"); pursuant to authorization by a majority of the registered electors of the Town voting in an election duly called and held on April 7, 1998; and pursuant to an ordinance (the ''Ordinance'') adopted by the Board of Trustees of the Town. Capitalized terms used but not defined in this bond have the meaning assigned to them in the Ordinance. THE ORDINANeE CONSTITUTES THE eONTRAeT BETWEEN THE REGISTERED OWNER OF TIllS BOND AND THE TOWN. TIllS BOND IS ONLY EVlDENeE OF SUeH CONTRACT AND, AS SUeH, IS SUBJECT IN ALL RESPEeTS TO THE TERMS OF THE ORDINANCE, wmeH SUPERSEDES ANY INCONSISTENT STATEMENT IN TIllS BOND. The Bonds have been issued by the Town for the purpose of providing funds for the Project descnOed in the Ordinance (the 'CProject"). The Bonds are general obligations of the Town and the full faith and credit of the Town are pledged for the punctual payment of the principal of and interest on the Bonds. For the purpose of paying the principal of and interest on the Bonds when due, respectively, the Board in the Ordinance has covenanted annually to determine and certify to the respective Board of County Commissioners of Grand County, eolorado, a rate of levy for general ad valorem taxes, without limitation as to rate or amount, on all of the taxable property in the Town, sufficient to pay the principal of and interest on the Bonds when due, respectively, whether at maturity or upon earlier redemption. [Redemption Provisions to be Inserted Here.] At its option, to be exercised on or before the forty fifth day next preceding each sinking fund redemption date, the Town may (i) deliver to the Paying Agent for cancellation any Bonds with the same maturity date as the Bonds subject to such sinking fund redemption and (ii) receive a credit in respect of its sinking fund redemption obligation for any Bonds with the same maturity date as the Bonds subject to such sinking fund redemption which prior to such date have been redeemed (otherwise than through the operation of the sinking fund) and cancelled by the Paying Agent and not theretofore applied as a credit against any sinking fund redemption obligation. Each Bond so delivered or previously redeemed shall be credited to the Paying Agent at the principal amount thereof to the obligation of the Town on such sinking fund redemption date, and the principal amount of Bonds to be redeemed by operation of such sinking fund on such date shall be accordingly reduced. Notice of any redemption of Bonds shall be given by the Paying Agent in the name of the Town by sending a copy of such notice by first-class, postage prepaid mail, not less than 30 days prior to the redemption date, to the Owner of each Bond being redeemed. Such notice shall 02-7063.01 2 ýÿ . . . specifY the number or numbers of the Bonds so to be redeemed (if redemption shall be in part) and the redemption date. If any Bond shall have been duly called for redemption and if, on or before the redemption date, there shall have been deposited with the Paying Agent in accordance with this Ordinance funds sufficient to pay the redemption price of such Bond on the redemption date, then such Bond shall become due and payable at such redemption date, and from and after such date interest will cease to accrue thereon. Failure to deliver any redemption notice or any defect in any redemption notice shall not affect the validity of the proceeding for the redemption of Bonds with respect to which such failure or defect did not occur. Any Bond redeemed prior to its maturity by prior redemption or otherwise shall not be reissued and shall be cancelled. The Paying Agent shall maintain registration books in which the ownership, transfer and exchange of Bonds shall be recorded. The person in whose name this bond shall be registered on such registration books shall be deemed to be the absolute owner hereof for all purposes, whether or not payment on this bond shall be overdue, and neither the Town nor the Paying Agent shall be affected by any notice or other information to the contrary. This bond may be transferred or exchanged at the principal operations office of the Paying Agent in Denver, Colorado, or at such other office of the Paying Agent designated by the Paying Agent for such purpose for a like aggregate principal amount of Bonds of other authorized denominations ($5,000 or any integral multiple thereof) of the same maturity and interest rate, upon payment by the transferee of a reasonable transfer fee established by the Paying Agent, together with any tax or governmental charge required to be paid with respect to such transfer or exchange and any cost of printing bonds in connection therewith. Notwithstanding any other provision of the Ordinance, the Paying Agent shall not be required to transfer any Bond (a) which is scheduled to be redeemed in whole or in part between the Business Day immediately preceding the mailing of the notice of redemption and the redemption date or (b) between the Record Date for any Interest Payment Date and such Interest Payment Date. The Ordinance may be amended or supplemented from time to time with or without the consent of the registered owners of the Bonds as provided in the Ordinance. It is hereby certified that all conditions, acts and things required by the Constitution and laws of the State, including the Act, and the resolutions of the Town, to exist, to happen and to be performed, precedent to and in the issuance of this bond, exist, have happened and have been performed, and that neither this bond nor the other bonds of the issue of which this bond is a part exceed any limitations prescribed by the Constitution or laws of the State, including the Act, or the resolutions of the Town. This bond shall not be entitled to any benefit under the Ordinance, or become valid or obligatory for any purpose, until the Paying Agent shall have signed the certificate of authentication hereon. 02-7063.01 3 ýÿ . . IN WITNESS WHEREOF, Town of Fraser, Colorado, has caused this bond to be signed in the name and on behalf of the Town with the manual or facsimile signature of the Mayor, to be sealed with the seal of the Town or a facsimile thereof and to be attested by the manual or facsimile signature of the Town Clerk. [MANUAL OR FAeSIMILE SEAL] FRASER, eOLORADO (Manual or Facsimile Signature) Mayor ATTEST: By (Manual or Facsimile Si,gnature) Town Clerk CERTIFICATE OF AUTHENTICATION This is one of the Bonds described in the within-mentioned Ordinance. Bank One, Colorado, N.A., as Paying Agent By Authorized Representative Date of Authentication: 02-7063.01 4 ýÿ . . . CERTIFICATE OF TRANSFER FOR VALUE RECEIVED, . the undersigned, hereby sells, assigns and transfers unto (Tax Identification or Social Security No. ) the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within bond on the books kept for registration thereot: with full power of substitution in the premises. Dated: NOTIeE: The signature to this assignment must correspond with the name as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. TRANSFER FEE MAYBE REQUIRED 02-7063.01 5 ýÿ . . ., . . TOWN OF FRASER ORDINANCE NO. cy; \ AN ORDINANeE REGULATING GRADING, EXCAVATION, AND FILL ON PROPERTY IN THE TOWN OF FRASER, COLORADO AND DECLARING AN EMERGENey. WHEREAS the Board of Trustees of the Town of Fraser hereby finds that it is necessary for the protection of the public health, safety and welfare of the citizens of the Town of Fraser to regulate grading, excavations, and fills: NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER, COLORADO: PART 1. AMENDMENT OF TOWN CODE: The Code of the Town of Fraser, Colorado is hereby amended by repealing Section of the Uniform Building eode and by replacing said repealed section with a new Section 4-1-2 to the Code of the Town of Fraser entitled "Grading, Excavation, and Fill Permits," which shall read as follows: Section 1. Permits Required: Except as specified in Section 2 of this Article, no person shall do any grading, excavation, or :fill without first obtaining a grading permit from the building official. A separate permit shall be obtained for each site and may cover both excavations and fills. Section 2. Exempted Work: A grading permit is not required for the following: 1. When approved by the building official, grading in an isolated, self contained area if there is no danger to private or public property. 2. An excavation below finished grade for basements and footings of a building, retaining wall or other structure authorized by a valid building permit. This shall not exempt any :fill made with the material from this excavation. 3. Cemetery graves. 4. Refuse disposal sites controlled by other regulations. 5. Excavations for wells or utilities. , . . 6. Mining, quarrying, excavating, processing or stockpiling of rock, sand, gravel, aggregate or clay where established and provided for by law, provided such operations do not affect the lateral support or increase the stresses in or pressure upon any adjacent or contiguous property. 7. Exploratory excavations under the direction of soil engineers or engineering geologists. 8. A fill less than twenty (20) cubic yards on anyone lot or lots providing that the fill does not obstruct a drainage course, encroach on a floodway or floodplain, or exceed two (2) feet in vertical dimension. 9. An excavation or fill less than two (2) feet in depth with side slopes not steeper than three (3) feet horizontal to every one (1) foot in vertical dimension. Exemption from the permit requirements of this article shall not be deemed to grant authorization for any work to be done in any manner in violation of the provisions of this article or any other laws or ordinances of the Town. Section 3. Application for a Grading Permit: An application for a grading permit is required for any grading in excess of twenty (20) cubic yards or any excavation or fill in excess of two (2) feet in depth. The application shall be made for either a general grading permit or an engineered grading permit. A general grading permit shall be required in the following instances: 1. if the excavation or:fill exceeds twenty (20) cubic yards and is less than one thousand (1000) cubic yards with a maximum vertical dimension of less than two (2) feet; 2. if the excavation or:fill is less than twenty (20) cubic yards and its vertical dimension exceeds two (2) feet~ An engineered grading permit shall be required whenever the excavation or fill exceeds one thousand (1000) cubic yards, or greater than two (2) feet in vertical dimension. Section 3.1. General Grading Permit: Each application shall be accompanied by a plan in sufficient clarity to indicate the nature and extent of the work. The plan shall give the location of the work, the name ofthe owner, the name of the person who prepared the plan and a construction sequence outlining the proposed time-table for completion of the grading and revegetation. The plan shall also include the following information: 1. General vicinity of the proposed site. 2. Limiting dimensions and depth of the cut and/or:fill. 3. Location of any building or structure within fifteen (15) feet of the proposed grading. , , . . 4. Location, size and depth of all existing utilities and easements on the proposed site. 5. Location of all natural features, such as watercourses, on the proposed site or within one hundred (100) feet of the "graded area." 6. A revegetation plan. The general grading permit shall be issued by Town staffwithin two (2) weeks of its complete submittal and may have conditions placed upon it, including a request for an engineered grading permit. The permittee may challenge these conditions in a public hearing before the Board ofTmstees. Said hearing must be requested in writing by the permittee within two (2) weeks of the staff's decision and shall be held within sixty (60) days of the request for hearing. A separate fee may be imposed for the appeals process. Section 3.2 Engineered Grading Permit: Each application shall be accompanied by two (2) sets of plans and specifications, supporting data and a construction sequence outlining the proposed time-table for completion of the grading and revegetation. The plans shall contain the following information: 1. General vicinity of the proposed site. 2. Property limits and accurate contours of existing ground and details of terrain and area drainage. 3. Limiting dimensions, elevation or finish contours to be achieved by the grading, and proposed drainage channels and related construction. 4. Location of any buildings or structures on the property where the work is to be performed and the location of any buildings or structure on the land of adjacent owners that are within fifteen (15) feet of the property or that may be affected by the proposed grading operations. 5. Recommendations included in the soils engineering report shall be incorporated in the grading plans and specifications. 6. Location, size and depth of all existing utilities and easements on the proposed site. 7. Location of all natural features, such as watercourses, on the proposed site or within one hundred (100) feet of the disturbed graded area. 8. A Soils Engineering report: The soils engineering report required shall include data regarding the nature, distnbution and strength of existing soils, conclusions and recommendations for grading procedures and design criteria for corrective measures, including buttress fills, when necessary, and opinion on adequacy for the intended use of sites to be developed by the proposed grading as affected by soils engineering factors, including the stability of slopes. 9. A revegetation plan. ýÿ . . . . The engineered grading permit shall be issued by the Town Engineer within thirty (30) days of its complete submittal and may have conditions placed upon it. The permittee may challenge these conditions in a public hearing before the Board of Trustees. Said hearing must be requested in writing by the permittee within two (2) weeks of the Engineerjs decision and shall be held within sixty (60) days of the request for hearing. A separate fee may be imposed for the appeals process. Section 4. Hazards: Whenever the building official determines that any existing excavation or embankment or fill has become a hazard to life or limb, or endangers property, or adversely affects the safety, use or stability ofa public way or drainage channel, the owner of the property upon which the excavation or fill is located, or other person or agent in control of said property, upon receipt of notice in writing from the building official, shall within the period specified therein repair or eliminate such excavation or embankment to eliminate the hazard and to be in confonnance with the requirements of this code. Section 5. Environmental Hazards: Off-site fill material shall be free of environmental hazardous materials. Applicants for a permit shall ensure the Town that fill material hauled from an off-site location is free of environmental contaminants. The source of fill material shall be identified prior to application for a grading permit. If directed by the Town, the applicant shall have testing performed on a representative sample(s) of the fill material to determine if environmentally hazardous materials are present in the fill. Section 6. Fill Material: Detrimental amounts of organic material shall not be permitted in fills. No rock or similar irreducible material with a maximum dimension greater than twelve (12) inches shall be buried or placed in fills unless included and approved as part of an engineered grading permit. All fills shall be compacted to a minimum of 90% of maximum density. Section 7. Erosion and Sedimentation eontrol~ The applicant conducting the grading activity shall install and maintain temporary and permanent erosion and sedimentation control measures. Where cut slopes are not subject to erosion due to the erosion-resistant character of the materials, such protection may be omitted. Section 8. Permit Fee: Applicants for a permit under this Article shall pay the required and necessary fee to the Town before the issuance of such permit. The fees for such permit shall be established and amended from time to time by resolution of the Fraser B~ard of Trustees, or as established in the adopted Uniform Building Code. Section 9. Valid Period: All grading permits shall be valid for six (6) months from the date the permit is issued provided that the approved application and the conditions of its approval have not changed. No more than one (1) general grading permit shall be issued for one parcel of land within a three (3) year period. ýÿ . . " . . Section 10. Display of Permit: Each permit issued under this Article shall be kept at the grading site while the work is in progress and shall be exhibited upon request to any employee of the Town. Section 11. Bonds: The Town may require bonds in such forms and amounts as may be deemed necessary to ensure that the work, if not completed in accordance with the approved plan and specifications, will be corrected to eliminate hazardous conditions. Section 12. Penalties: Every person convicted of a violation of any provision of this Article shall be punished by a fine not exceeding three hundred dollars ($300.00) or by imprisonment not exceeding ninety (90) days, or both such fine and imprisonment. Additionally, the convicted person may be required to replace the graded, excavated, or filled land to its original condition. PARTn RENUMBERING: All remaining articles and Sections of Section 4 of the Code of the Town of Fraser shall be appropriately renumbered. PARTID. SEVERABILITY: If any part or parts of this Article are for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Article and this Board of Trustees hereby declares that it would have passed this Article and each part or parts thereof, irrespective of the fact than anyone part or parts be declared invalid. PART IV. EMERGENCY DECLARED: EFFECTIVE DATE: The Board of Trustees finds and determines that matters relating to grading, excavating, and :fill are within the scope of the Town's police power authority and constitute an emetgency requiring the immediate passage of this Ordinance for the preservation of the public health, safety, and welfare. This Ordinance shall become effective upon its passage, adoption, and signature of the Mayor. ADOPTED AND APPROVED TIllS _DAY OF --' 1998 BY A VOTE OF: FOR: AGAINST: ABSTAIN: - - TOWN OF FRASER BY: Mayor ATTEST: BY: Town elerk SEAL /gradinge.doc ,. ~ . . SUMMARY OF ANALYSIS OF COMBINING TOWN OF FRASER'S WATER RIGHTS, THE MARYVALE PLAN FOR AUGMENTATION DECREED IN CASE NO. 86CW258 AND REQUESTED TO BE AMENDED IN CASE NO. 98CW401, AND THE FOREST MEADOWS' PLAN FOR AUGMENTATION DECREED IN CASE NO 83CW362 INTO A PRACTICAL BASIS FOR WATER SUPPLY TO THE TOWN OF FRASER WITH ANNEXATION OF MARYV ALE. Prepared for: Town of Fraser 153 Fraser Avenue Fraser, Colorado 80442 Prepared by: McLaughlin Water Engineers, Ltd. 2420 Alcott Street Denver, Colorado 80211 August 1998 . . . . TABLE OF CONTENTS SUMMARY OF ANALYSIS OF COMBINING TOWN OF FRASER'S WATER RIGHTS, THE MARYV ALE PLAN FOR AUGMENTATION DECREED IN CASE NO. 86CW258 AND REQUESTED TO BE AMENDED IN CASE NO. 98CW401, AND THE FOREST MEADOWS' PLAN FOR AUGMENTATION DECREED IN CASE NO 83CW362 INTO A PRACTICAL BASIS FOR WATER SUPPLY TO THE TOWN OF FRASER WITH ANNEXATION OF MARYVALE. INTRODUCTION AND PURPOSE .......................................... 1 ANALYSIS .......................................................... 1 RESULTS AND CONCLUSIONS ........................................... 1 RECOMMENDATIONS.................................................. 3 TABLES Table 1 Summary of Water Rights and Plans of Augmentation for Town of Fraser, Maryvale, and Forest Meadows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 Table 2 Comparison of Plans for Augmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16 ýÿ . . . . INTRODUCTION AND PURPOSE I The basic objective of this investigation is to determine: I 1. The feasibility, from an operational and administrative standpoint, of combining the two augmentation plans (Forest Meadows and Maryvale) with the Town of Fraser's water rights portfolio to produce the necessary legal water rights basis required for the Town of Fraser to meet future water supply requirements of the Town of Fraser with Maryvale annexed. I 2. What needs to be changed in the existing plans for augmentation in order to produce an I operationally feasible water supply system for Fraser which can meet the future water supply requirements at buildout conditions. ANALYSIS A detailed analysis and comparison of the Town of Fraser's water rights, the Forest Meadows plan for I augmentation decreed in Case No. 83CW362, Maryvale plan for augmentation decreed in Case No. I 86CW258, and the amended Maryvale plan for augmentation proposed in Case No. 96CW041 are presented in Tables 1 and 2, respectively. RESULTS AND CONCLUSIONS 1. There will be sufficient water for augmentlltion purposes available under the Maryvale plan for augmentation and the amended Maryvale plan for augmentation to cover expected out of priority I diversions by the 16 Maryvale wells if the assumptions and conditions in the Maryvale plan for I augmentation or the amended planfor augmentation are adhered to (e.g., no more than 53.0 acre- feet per year of consumptive use from the 3401 EQRs at buildout conditions, no more than 20.2 acres of irrigated landscaping, 3.33 percent consumptive use from in-house use, etc.) 2. There will be sufficient water for augmentation purposes available under Forest Meadows plan fop augmentation to cover expected out of priority diversions by Fraser Well Nos. 1 and 2 serving the Forest Meadows area if the assumptions and conditions in the Forest Meadows plan for I augmentation are adhered to (e.g. no more than 32.65 acre-feet per year of consumptive use from 592 EQRs, 5 percent in-house consumptive use, no more than 10.1 acres of irrigated landscaping, I etc.) 3. There will be sufficient physical water supply to the proposed development at Maryvale under both alternatives (with and without the 91 small capacity wells) proposed in the amended plan for augmentation if 901 acre-feet per year can be produced by the 16 wells decreed in the original Maryvale plan for augmentation. 4. There will likely not be sufficient physical supply from the approximately nine wells decreed in Case No. 85CW377 to serve the remainder of Fraser not covered by either the Maryvale plan for augmentation (either the original or the proposed amended) or the Forest Meadows plan for augmentation at buildout conditions. It will be necessary to divert from surface water or permit additional wells to serve as alternate points of diversion for Fraser's senior rights in order to have sufficient physical supply at buildout conditions. 1 P:9S4l2.001p/augplamnemo ýÿ . . . . 5. The major problem facing the Town of Fraser in assembling a legal and physically practical water supply system using the two augmentation plans and the Town's water rights portfolio is producing an accounting and reporting system that: (1) will be faithful to the requirements decreed in the original Maryvale plan for augmentation plan (and which will not be altered by the requested amended plan for augmentation), (2) will be acceptable to the Division 5 Engineer and can be used in drought years as a basis for administration, and (3) is sufficiently practical that it ban be carried out by the Town without undue expense for lawyers and engineers and a lot of hassle to the Town. 6. The basic problem exists because the Forest Meadows and original Maryvale plans for augmentation were each developed and decreed as separate, stand alone plans for augmentation with their own sources of supply serving only the Forest Meadows area or the original Maryvale area. Each individual plan for augmentation has specific definitions of an EQR and limits on consumptive use for in-house domestic use, unit consumptive use for landscaping purposes (acre- feet/acre), etc. There are numerous differences and conflicts between the two plans for augmentation. For example, the site decreed for the augmentation reservoir in the Forest Meadows plan for augmentation is proposed to be served by the amended Maryvale plan for augmentation. In-house domestic use will have 5 percent consumptive use in the Forest Meadows plan for augmentation and 3.3 percent consumptive use in the original and amended Maryvale plans for augmentation. There are numerous other examples of the conflicts and differences among the plans for augmentation detailed in Tables 1 and 2. 7. The master plan water system which will be developed for the existing Town of Fraser and the areas included in the Forest Meadows and Maryvale plans for augmentation will tie all these areas together for purposes of physical supply. The lines will be looped and the distribution systems for the existing Town, Forest Meadows area and Maryvale will all be interconnected and it should be possible to serve most areas from any well or surface diversion. As a result of this physical integration of three systems (existing Town, Maryvale and Forest Meadows) which were legally decreed as three separate systems, it will be very difficult to operate the combined system and to meet the reporting and accounting requirements specified in the decrees in Case Nos. 86CW256, 98CW41, and 83CW362 and the numerous decrees in the Town's water rights portfolio. 8. This is not a trivial problem. Under future drought conditions in the Fraser River, there will be strict administration of water rights by the Division 5 Engineer who, in turn, will require reporting of data to demonstrate that the Town is adhering to the requirements of its degrees and augmentation plans and is replacing all out of priority depletions. This will require the Town to operate the water supply system in accordance with the decreed plans for augmentation and have a workable and practical accounting and reporting system that will be satisfactory to the Division 5 Engineer. 9. Under the present situation, with the augmentation plans and the Town's water rights decreed separately and independently of one another and with the resulting conflicts among the various decrees and water rights, it is very likely that operating the combined systems and developing an acceptable accounting and reporting system to the Division Engineer will be difficult, complicated and expensive. 10. Stan Cazier has already detailed many of the problems and has made recommendations for solving the problems in his protest of the Maryvale amended plan for augmentation in Case No. 98CW041 2 P:9~.OOlp/augplamnemo ýÿ . . and in his comments on Maryvale's request to use the Forest Meadows plan for augmentation. Stan has correctly highlighted the continuing jurisdiction problem as one of the main problems, and perhaps the main problem, with Maryvale's amended plan for augmentation. Under both the original plan for augmentation decreed in Case No. 86CW256 and the proposed amended plan for augmentation, there is continuing jurisdiction for 10 years after 1600 gpm is pumped from the 16 Maryvale wells; consequently, continuing jurisdiction could go on for a very long time. Consequently, the Town will be required to adhere to the requirements of the plan for augmentation long after the Maryvale developer has left and the Town will be responsible for coming up with additional augmentation water if necessary, doing all the monitoring required, and generally trying to run this plan for augmentation in a very different environment/system than for which it was decreed. 12. Following are some additional recommendations and some expansion on some of Stan's recommendations that will increase the likelihood of the Town ending up with a water rights portfolio with which it can efficiently serve the Town (including Maryvale and the Forest Meadows areas) without unnecessary expense and hassle. RECOMMENDATIONS 1. First choice would be to do a plan of augmentation for the Town which would incorporate the Town's existing water rights portfolio, the Maryvale plan for augmentation (either amended or in the form decreed in Case No. 86CW258), and the Forest Meadows plan for augmentation. This would result in a good legal basis to support an interconnected and looped physical water supply system that will allow for water from any well or surface diversion to be used any place in the system and satisfactorily accounted for. If you were to select this option, it would be necessary for the Town to require that more consumptive use credits be transferred from Maryvale to the Town than are presently proposed in Maryvale's amended plan for augmentation because it is likely that some of the basic parameters and requirements in an amended Maryvale plan for augmentation (e.g. the 3.33% in-house depletion/consumptive use) will be changed by the Water Court thereby resulting in an increased demand for augmentation water. A key action necessary to integrate the two augmentation plans and the Town's water rights portfolio into a common plan for augmentation will be to define a uniform EQR for use throughout the Town's service area that will allow for uniform replacement of out of priority depletions regardless of the source of depletions; Le. out of priority pumping from a Maryvale well will require equivalent replacement of depletions regardless of whether the pumped water supplies a home in Maryvale or a home in the Forest Meadows area. 2. Second choice would be to attempt to change the proposed amended Maryvale plan for augmentation in Case No. 98CW401 as much as possible so that it will conflict as little as possible with the Town's water rights portfolio and the Forest Meadows plan for augmentation. This would be done by continuing our protest to various requirements and deficiencies in the proposed amended plan for augmentation through the Water Court process together with using leverage through the annexation agreement to get as much change as possible. The major problem here is that the end result is going to be pretty much of a jerry rigged deal and, 3 P:9S.{)22.001p/augpJanmemo ýÿ . . . in my opinion, is going to cost the Town more money and grief in the future. Also, many of the same difficult problems are going to have to be faced in this alternative as in the first choice; for example, the 3.33 % in house consumptive use factor, the limited water for augmentation purposes offered by Maryvale, the excessive monitoring requirements, the Winter Park West Stipulation, etc. This alternative will require significantly more change than is contained in the proposed amended plan for augmentation (Case No. 98CW041). The major objective of the proposed Maryvale amended plan for augmentation is to ratchet down the amount of augmentation water required so that Maryvale will have sufficient water for augmentation purposes to support the golf course. 3. A third alternative would be to accept the Maryvale amended plan for augmentation without major change and plan to work out operation, administration and accounting matters in the future. The major problem with this alternative is that the Town gets stuck with having to resolve all the problems caused by the inconsistencies and conflicts among the two augmentation plans and the Town's water rights in the future by itself. Furthermore, this is likely to happen in a future series of dry years when all water rights in the Fraser River valley and tributaries will be tightly administered and rectifying conflicts and deficiencies will be costly and time consuming. 4 P:9S-022.001p/augplamnemo . . Table 1 Summary of Water Rights and Plans of Augmentation for Town of Fraser, :..:c...nale, and Forest Meadows Town of Forest Original Amended Aug Plan Fraser Meadows Maryvale in 98CW041 in 83CW362 Aug Plan 86CW258 w/o Small w/Small Capacity Capacity Wells Wells Total EQRs at 2535(20) 592(16) 5516(4) 3401 (6) 2829(6) Build-out Annual Demand 1052 AF13) 263 Af<2) 1459 Af<21) 901 AFI1) 748.9 AFI1) (af/yr) CU (af/yr) 96.3 32.65 AF(!) 84.5 AF(18) 53.0 AF(19) 45.7 AF19) AF/yr(lS) Area 600 Acres(2l) 40.29 Ac Approx Approx Approx 700 acres 960 acres(23) 960 acres(23) 75.3 Ac including 37.1 Area "D"(22) acres of lawns(14) Supply 900 gpm (9) 350 gpm (I) 1600 gpm 1600 gpm 1600 gpm 870 AF/yr 1459 901 AFIYR(29) 748.9 AFIYR(30) AFIYR(28) from 16 wells from 16 wells supply central supply central system system; 91 small capacity wells Physical supply 9 wells(9) Troublesome(l) Troublesome Troublesome Troublesome source producing at aquifer via aquifer aquifer aquifer through 100 gpm Fraser Well through 16 through up to up to 16 large 60% of the NlIsl&2 wells(l1) 16 wells(l1) wells & 91 on- time = 870 site wells(l1) ac-ftIyr Source of Aug (10) Elk Creek Cozens Ditch, Cozens Ditch, Cozens Ditch Water Ditch Nil 2(12). Maryvale Maryvale Maryvale Res 17.66 AF Res., Res., Detention storage is Detention Detention Reservoirs required Reservoirs Reservoirs Quantity of Aug 183 AF/yr(IO) 32.65 AF/yr<12) 116 AFIYR(4) 116 AF4) 116 AF4) Water (24) (25) (26) (26) (26) Required Accounting 5 P:!lS-022.001p/augp1anmemo . . Covered by Green No No No No Mtn. Reservoir Operating Plan Consumptive use as N.A. 5%(1) 3.3% 3.3%(4) 91 wells % of total water 10%/domestic(6) divided 86%llawns 3.3% for central(4) water system. Maryvale Golf (7) (8) Course FOOTNOTES FOR TABLE 1 (1) From Case Nil 83CW362, Table 1, Fraser Well Nils 1 and 2 were conditionally decreed in Case Nil 82CW219 with Appropriation date of July 22, 1982 for 150 gpm and 200 gpm respectively metered diversions to the subdivision shall not exceed 2630 acre-feet in any 10 consecutive years. I Consumotion Demand Summary Domestic Consumption = 11.64 AF Irrigation Consumption =437,500 ff x 1 Ac = 10.04 Acres x 1.01AF = 10.14 AF 43,560 ff Ac Evaporation from Augmentation Reservoir = 10.87 AF Total = 32.65 AF Total depletion of the Fraser River is limited to 32.65 AF/yr. (2) Town of Fraser "Integrated Augmentation Plan Framework" HRS Water Consultants, February 1990 Water Demand Domestic Demand Irrigation Demand SFDU 30 x 350 gpd = 10,500 3000 ff/unit = 9O,oooff MFDU 480 x 250 gpd = 120,000 500 ff/unit = 240,oooff Hotel 500 units 500 x 125 gpd = 62,500 150 ff lunit = 75,00<>ff Com & Ind 130,000 ff x 107 gpd/1000 ff = 13.900 250 ff/1000 ff = 32.5~ 206,900 gpd 4j I,;) Domestic & household = 206,910 gpd x 365 davs x AF = 232 AF Yr 325,851 gal Diversion Demand Summarv Reservoir Storage = 17.7 AF Irrigation Demand 437,500 ff x Acre x 1.34 AF = 13.5 AF 43,5&>2 Ac Domestic = 232 AF Total = 263.2 AF 6 P:!lS.ul2.001p/augpla nmemo . . . The 1.34 acre-feet/acre demand is based on: a. 12.07 inches/irrigation consumptive use of water for irrigation cited in: HRS Water Consultants, Inc., 1982, Engineers Report for Augmentation Plan for Town of Fraser, Appendix C to report by Broyles Engineering Co. b. Assuming on irrigation efficiency of 75 percent results in an irrigation demand of 1.34 acre-feet/acre/year . (3) Predesign Study 1996 Water Improvements for the Town of Fraser, MWE, Ltd., September 1996 (4) Case Nil 86CW258. The source of augmentation water for the 5516 EQRs atbuildout is 116 acre- feet of historic consumptive use credits from the Cozens Ditch which can be stored in the 84 acre- feet of storage in Maryvale Reservoir, Maryvale Reservoir enlargement and the proposed detention reservoirs. (5) Engineer Report for Augmentation Plan for the Town of Fraser, Broyles Engineering Company, November 20, 1984, Item B.2, Page 1 (6) Application to Amend Finding of Fact, Conclusion of Law, Judgement and Decree Adjudicating Augmentation Plan Gathered in Case Nil 86CW258, September 1, 1988 indicates 3401 EQRs at buildout without small capacity wells and 2829 EQRs with small capacity wells. Of the 2829 total EQR's for the with small capacity well scenario, 2738 EQR's would be served by the central water system and 91 EQR's would be served by the small wells. (7) Golf Course was not included in Case Nil 86CW258 (8) Per 1989 lease agreement between Town of Fraser and Maryvale, 65 acre-feet of water from Middle Park Conservancy District were to be leased by the Town of Maryvale for golf course irrigation. (9) . 9 wells decreed in 85CW337 (Windy Gap Exchange) with permitted yield of: (a) 2.23 cfs (1000 gpm) for Wells Nil 1, 2, 3a, 3b, 4 and 5, and (b) 1.11 cfs (500 gpm) for Wells Nil 7, 8 and 9. A total of 3.34 cfs (1500 gpm) can be pumped from Wells 1, 2, 3a, 3b, 4, 5, 7,8 and 9 as decreed in 82CW219 and 85CW339 (Elk Creek Ditch No.2). . 2.28 cfs decreed for Fraser domestic water system in Civil Action 1175, W2279 and 82CW219. . Wells 1-5 are alternate points of diversion for 2.28 cfs (1954 appropriation date from Fraser domestic water system. . Per Decree 9OCW235 and information provided to MWE April 4, 1998 titled "Original Approximate Well Capacities"; the Fraser well capacities are: 7 P:9S-022.001p/augp1amnemo . . Well CaDacitv ({(pm) 1 100 2 100 3A 40 3B 70 4 unknown 5 18 (not used) 6 18 (not used) 7 65 (manual start) 8 not drilled 9 not drilled For purposes of this comparison, the nine wells are assumed to each have a capacity of 100 gpm, and would pump at 60% of the time. This would result in a total annual combined production of: 9 wells x ~ x 1440 miD x 365 days x AF x 60% = 870 AF we day yr 325,851 gal (10) The Town of Fraser does not have a decreed augmentation plan; instead the Town relies on a collection of replacement sources to insure that the Town's nine decreed wells in Case NQ 85CW337 can continue to pump out of priority when a senior call is administered. Sources of replacement water include: . Green Mountain Reservoir releases to augment municipal water rights with priority dates senior to October 1977. All nine of Fraser's wells have appropriation and adjudication dates junior to 1977. Well NlIg 1-9, however, are decreed as alternate points of diversion for other water rights senior to 1977 in Case NlIg 82CW219 and 82CW337 (Gaskill Ditch and Fraser Domestic Water System). Therefore, these wells should be covered by Green Mountain Reservoir releases. In the event that Green Mountain Reservoir releases are not available, the Town's junior wells are covered by other sources of augmentation water discussed below. There appears to be some question that Well NlIg 1 and 2 are covered by Green Mountain. Well NlIg 1 and 2, however, are augmented in the Forest Meadows plan for augmentation decreed in 83CW362 and the decree in Case no. 85CW339by Elk Creek Ditch NQ 2 (7/23/1894 appropriation date and 8/11/1906 adjudication date) for 32.65 ac-ftlyear of historic consumptive use). 8 P:9S.m2.00lp/augplamnemo . . . Fraser has 80 acre-feet of Middle Park water: 65 acre-feet can be used by Maryvale under an 1989 lease to irrigate the proposed Maryvale golf course. This water can be exchanged to Fraser Well Nils 1,2,4 and 5, the Gaskill Ditch, Wells RM-5, RM-6, and RM-7; detention reservoirs K-1a, K-1b, K-2, J-2, J-3, E-F; and Maryvale Reservoir under the terms and conditions decreed in Case N290-CW-235. . Fraser has 25 acre feet of Windy Gap water which can be used for augmenting out of priority diversions by Well Nils 1-9. This was decreed in Case N2 85CW337. . Fraser has 110 acre-feet of Clinton Reservoir Agreement water which it can use for direct supply or augmentation/replacement purposes. However, this water is only available from September 15th to May 5th. This gives the Town the right to have Denver bypass 110 acre-feet of water from diversion into its Fraser River collection system and deliver this water instead to either St. Louis Creek, Big Vasquez Creek and/or the Fraser River. St Louis Creek joins the Fraser River downstream from the Town's well field while the Big Vasquez Creek joins the Fraser River upstream from the Town's well field. The Fraser River point of delivery would also be upstream from the Town's well field. These factors make the Big Vasquez Creek point of delivery and the Fraser River point of delivery more advantageous than the St. Louis Creek point of delivery. If the Town wants its Clinton Reservoir water delivered at Big Vasquez Creek or the Fraser River upstream from the Town it must provide 0.67 ac-ft of replacement water to Denver for each acre-foot of Clinton water bypassed to the Big Vasquez Creek or Fraser River. In addition, the Town must replace its depletions resulting from use of the by- passed water. In contrast, if the Town were to accept delivery of its Clinton Reservoir water At Williams Fork Reservoir, it will not have to make the replacement payment of 0.67 ac-ft/ac-ft to Denver. The Town has already acquired the necessary water to allow the Town to receive delivery of the Clinton water at Big Vasquez Creek or the Fraser River. This replacement water has been transferred to Denver. The amount of water required for replacing the Town's depletions when the 110 acre-feet is bypassed to the Town's points of diversion on the Fraser River or Big Vasquez Creek is based on 5 % of depletions because this by-pass water will be required during the winter when there will only be depletions resulting from in-house use. These depletions will be replaced by bypassing 5.0% of Fraser's 110 acre-feet or 5.5 acre-feet (.05 x 110 acre-feet = 5.5 acre-feet) of Clinton Reservoir water at Williams Fork Reservoir . Assuming the Town takes all of its 110 acre-feet of Clinton Reservoir bypass water from either the Fraser River or Big Vasquez Creek and replaces 5.5 acre-feet of its depletions from by-passing flows at Williams Fork Reservoir, this will require payment of 70 ac-ft to Denver (110 ac-ft - 5.5acft) x 0.67 ac-ft/ac-ft = 70 ac-ft). This 70 ac-ft will be released from Wolford Mountain Reservoir under terms of an agreement. In summary, the sources of water available to Fraser in addition to Green Mountain for replacing out of priority diversion include: 9 P:9S-022.001plaugplamnemo . . Source Acft/vear · Augmentation of Fraser Well Nil 1 and 2 by the Forest Meadows Plan 32.65 for Augmentation decreed in Case NlI 83CW362 and 85CW339. · Windy Gap Water decreed in Case Nil 85CW337 25.0 · Remaining Middle Park Conservancy District water from 80 acft after 15.0 leasing 65 acft to Maryvale. This water can be exchanged to Fraser Well NlIs 1,2,4 and 5 (Case NlI9OCW235). · Clinton Reservoir Agreement water 110.0 Total 182.65 (11) The source of supply is 16 wells decreed in Case Nil 86CW258 and included in the amended Maryvale plan for augmentation. Results of well production for Wells 7, 8 and 9 are from "Town of Fraser 1994 Testing Program Well NlIs 7, 8 and 9". Prepared for the Town of Fraser by HRS Water Consultant Inc. October 1994. Well Nil 7 was estimated to produce 88 gpm, Well NlI 8 at 70 gpm, and Well Nil 9 at 150 gpm. (12) As decreed in Case Nil 83CW362, the source of augmentation water is Elk Creek Ditch NlI 2 for 0.5 cfs diversion and 32.65 acre-feet/year from previously irrigated meadowland consisting of 32.32 acres. Storage will be required to carry over the 32.65 acre-feet/year of historic consumptive use credits from the Elk Creek Ditch Nil 2 for use during the non-irrigation season. The decree in case Nil 83CW362 (paragraph 121) requires the reservoir to be at least 17.66 acre-feet. This plan for augmentation will become effective only after a conditional decree for the 17.66 acre- foot reservoir is obtained. (See paragraph 121 in decree in Case Nil 83VW362.) (13) Average Annual Demand is projected to be: In house: 2535 EQRs x 350 gal x 365 davs x AF = 994 AF EQR day Yr 325,851 gal Landscape irrigation: 2535 EQRs x 750 ff + 43560 sq ft x 1.34 AF = 58 AF EQR day EQR Ac Total = 994 + 58 = 1052 AF Because the distribution among single family, multifamily, commercial and industrial was not provided by Fraser, 750 square feet of irrigated landscaping per EQR was used to estimate irrigation water demand. The source of the 1.34 acre-feet/acre irrigation demand is detailed in footnote (2) herein. 10 P:9S-022.001p/augplanmemo ýÿ . . (14) Engineering Report Plan of Augmentation Prepared for Regis - Maryvale, Inc., Grand County, Colorado by Wright Water Engineers, January 1987, Section 1 (15) Consumptive use for the Town of Fraser is based upon 5 % of the average annual daily diversion (350 gpdlEQR) being consumed for in house use. For landscape irrigation during the months of June, July, and August, and assume 500 sq ft/EQR of landscape irrigation and 1.6 ac-ft/acre of consumptive use. In house consumptive use for June, July and August: 350 gal/day EQR x 2535 EQR x AF x 5 % x 92 days = 12.5 AF 325,851 gal Landscape irrigation: 500 sq ft/EQR + 43,560 sq ft/ acre x 1.6 AF/acre x 2535 EQR = 46.6 AF In house consumptive use for January through May and September through December: 350 gal/day EQR x 2535 EQR x AF x 5% x 273 days = 37.2 AF 325,851 gal TOTAL CONSUMPTIVE USE = 96.3 AF (16) The following calculations were made to determine the number ofEQR's projected for the Forest Meadows One Development as detailed in the decree for Case Nll 83CW362. The number of single family and other development categories together with the gallons/development/day is specified in Case Nll 83CW362. SFDU 30 x 350 gpd x 1 EOR = 30 EQRs 350 gpd MFDU 480 x 250 gpd x 1 EOR = 343 EQRs 350 gpd Hotel 500 x 125 gpd x 1 EOR = 179 EQRs 350 gpd Commercial & Industrial: 130,000 ff x 107 ~ x 1 EOR = 40 EORs 1000 350 gpd Total EQRs = 592 EQRs (17) As proposed in Case Nll 98CW041; Application to Amend Case Nll 86CW258, see paragraph 41. 11 P:95-022.001p/augplamnemo . - (18) As decreed in Case Nil 86CW258, Maryvale Plan for Augmentation. (19) As proposed in Case Nl2 98CW041, Application to Amend Case WI 86CW258, see paragraph 4 I. (20) Predesign Report and Application for Site Approval, Wastewater Treatment Plant ExpansionlUpgrade for the Fraser Sanitation District and Winter Park West Water and Sanitation District, Grand County, Colorado by McLaughlin Water Engineers, Ltd., January 1998. Page 11-2: Ultimate EQR within Town Limits 1335 EQR Developable Areas outside Town, excluding Maryvale and Forest Meadows One: Existing 150 lots to northwest 150 EQR Denver Water Board Property 50 acres 200 EQR Commercial Site to North 250 EQR Developable Land Adjacent to the Town on the West (150 acres) 600 EQR Total EQR's 2535 EQR These projections were corroborated by Vicki Winters, Town of Fraser staff, July 8, 1998. (21) This value of the service area was provided by the Town of Fraser personnel. (22) Engineering Report for Augmentation Plan for the Town of Fraser, By Boyles Engineering Co., November 20, 1984. (23) Estimate of Acreage by MWE from Exhibit A of Case Nil 98CW041, prepared by Martin and Wood, March 1998. (24) The Town of Fraser must: (1) Maintain records on volume of Clinton Reservoir bypass water taken at: (a) St Louis Creek. (b) Big Vasquez Creek, and (c) Fraser River. (2) Maintain records on volume of Clinton Reservoir bypass flows used to replace depletions from Clinton Reservoir bypass flows. (3) Amount of Clinton Reservoir deliveries taken at Williams Fork Reservoir. (4) Amount of Middle Park Conservancy District water requested and the amount provided to augment the Maryvale golf course. (5) Amount of Windy Gap water requested (6) The quantity and timing of augmentation water used to augment Town of Fraser Well Nils 1 and 2 under the terms and conditions of the Forest Meadows plan for augmentation decreed in Case Nil 83CW262. 12 P:9S-022.001p/augplamnemo ýÿ - - --- . . (7) The volumes of pumping from the Town's nine wells: (1) Under their own priorities (2) As alternate points of diversion for: (25) The following requirements are included in the decree in 83CW362: a. Consumptive use (not just out of priority depletions) from project will not exceed 32.65 AF/yr including 10.87 acre feet of reservoir evaporation. Depletions to Fraser River must be less than 32.65 AF/yr. b. Less than 10.1 acres of landscape irrigation and Town shall require developer to have protective covenants to limit to native vegetation. c. Irrigation season of May 15 - September 30. d. Water lines from Fraser Well NRs 1 and 2 and additional wells shall be metered. "Metered diversions into the subdivision shall not exceed 2,630 acre feet in any 10 consecutive years." Therefore, you can pump more from Well NRs 1 and 2, but you can only divert 263 AF/yr to Forest Meadows. e. Reservoir must be at least 17.66 acre feet. f. Install meters on all wells used in this plan for Augmentation and report to Division Engineer. g. Reservoir evaporation will be calculated and replaced. h. This is really not a measured plan for augmentation. It calls for releases every month for replacement of domestic depletions of 0.97 AF and variable amounts for replacement of irrigation depletion and reservoir evaporation depletion during the summer (see Table 1 in decree in 83CW362). There doesn't appear to be a provision for pro rata amounts to be released before buildout conditions are achieved. i. Maximum number of living units shall be 10tO and less than 130,000 sq ft of commercial. (26) The following accounting and reporting requirements will be necessary: a. Case no. 86CW258 1. Page 13: Applicant shall replace 3.33 % of out of priority diversion applied to domestic uses and 85 % of out of priority diversions applied to irrigation purposes.. . Domestic use = total well pumping - Irrigation Demand . Irrig. Demnad = Irrig. Landscape acres X M/ac irrig demand. 13 P:95-022.001p/augplanmemo . . 2. This has to be calculated every week during April-Sept. During the rest of the year, the frequency of making this calculation is not clear. b. Case No. 98CW041 1. The basic accounting concepts as detailed in Case No 86CW258 are not changed in 98CW041 . 2. Weekly accounting of pumpage from the wells, including the small wells will be necessary. This is going to require installation of meters, that really work, and someway to read all these meters on the small wells. 3. In the case of the Maryvale well field; this will be supplying water to areas other than Maryvale because there will be a looped system. Consequently, you would have to read all the meters on all the homes in Maryvale every week. 4. An alternative would be to utilize the procedure that they employ in page 5 of 98CW041 to estimate the total domestic CU: i. For the EQRs served by the central water system, assume a prorated weekly portion of 0.00853af/yr/central system EQR and multiply by the current number of central system EQRs and ii. For the EQRs served by the small wells use 0.02565 af/yr/EQR served by small wells and multiply by the number of EQRs served by small wells. This will work fine if you can get it approved in the amended aug plan: Marylvale needs to get this approved, however. (27) The 1459 acre-feet/year in-house and landscape irrigation demand is decreed in Case N2 86CW258. We believe this estimated 1459 acre-feet/year demand for 5516 EQR's is likely underestimated. (28) Estimated supply is based on: . Assuming 100 gpm yield based on Fraser Well Nil 1 and 2 and a well utilization factor of 0.60: 100 gpm x 16 wells = 1600 gpm, 1600 gpm x 1440 minlday x 365 days/yr x 0.60 + 325, 900 gallAF = 1550 AF/Yr . The decree in Case Nil 86CW258 limits pumping from the wells to 1600 gpm and 1459 acre-feet/year . The total for the with on-site wells situation is: 1600 gpm + 270 gpm = 1870 gpm, and 1550 AF/Yr + 130 AF/Yr = 1680 AF/Yr 14 P:9S-022.001p/augplamnemo ýÿ . . (29) As indicated in paragraph 41 of the Application for an amended plan for augmentation (Case NQ 98CW041) the applicant proposes to reduce the total annual water demand, and consequently the supply, to 901.0 acre-feet/year. No reduced rate of pumping is proposed in the amended augmentation plan in Case NQ 98CW041; therefore, it is assumed that the 1600 gallon/minute limitation on the rate of pumping decreed in Case NQ 86CW258 will still apply. (30) The amended plan for augmentation proposed in Case Nil 98CW041 proposes 748.9 acre-feet/year total pumping from the 16 wells and the 91 small capacity wells. The amended augmentation plan in Case NQ 98CW041 does not change the 1600 gallon/minute rate decreed in Case NQ 86CW258 or the 16 wells. The amended plan for augmentation in Case NQ 98CW041 does not propose separate limits on pumping by the 16 wells and the 91 small capacity wells. However, assuming 3 gpm for the on- site small capacity wells and a well utilization factor of 0.30: 91 wells x 3 gpm = 273 gpm, 273 gpm x 1440 minlday x 365 days/year x 0.30 + 325,900 gal/AF = 130 AF/Yr would be produced from these 91 small capacity wells. The decree in Case NQ 86CW258 limits pumping from the 16 wells to 1459 AF/Yr and 1600 gpm. The application in the amended plan for augmentation (Case Nil 98CW041) proposes to limit total supply to 748.9 AF/Yr for the 16 wells supplying the central system and the 91 small capacity wells. Paragraph 14L of the decree in Case Nil 86CW258 limits pumping to less than 1600 gallons/minute and 1459 acre-feet/year for the 16 wells. Paragraph lIE of the decree in Case Nil 86CW258 limits pumping to 1459 acre-feet per year and consumptive use to 84.5 acre-feet per year. Paragraph 41 of the amended plan for augmentation in Case Nil 98CW041 proposes to modify paragraph lIE of the decree in Case Nil 86CW258 by limiting supply without the small capacity wells to 901 acre-feet/year and 748.9 acre-feet/year with the small capacity wells. This amendment proposes similar limits for consumptive use to 53.0 acre-feet per year without the small capacity wells and 45.7 acre-feet per year consumptive use with the small capacity wells. The following concerns result from the proposed amendment to the augmentation plan: a. A breakdown of the 748.9 acre-feet/year pumping limit must be provided between the annual allowable pumping for the 16 wells and the 91 small capacity wells. b. If the town accepts the amended Maryvale plan for augmentation proposed in Case N" 98CW041, necessary accounting requirements must be determined in order to limit water supplied to the Maryvale EQR's to the 901 acre-feet/year without the small capacity wells or the 748.9 acre-feet/year (net of the pumping by the small capacity wells). 15 P:9S-022.001p/augplamnemo ýÿ TABLE 2 COMPARISON OF PLANS FOR AUGMENTATION Case NR 86CW256 Case NR 98CW401 Case Nil 83CW362 Item (Original Maryvale) (proposed Maryvale Amended) (Forest Meadows) 1. EQR's (2.75 peoplelEQR) 5516 EQR 340 EQR w/o small wells 1010 Units (p 5) 2829 EQR wI small wells 130,000 sq ft commercial . 2. gpdIEQR 275 350 gld/single family 250 gld/multi-family 125 gldlhotel unit 107 gld/l000 sq ft commercial 3. Irrigated LandscapinglEQR 250 No change 3000 sq ft/single family (ffIEQR) 300 sq ft/multi-family 150 sq ftlhotel room 250 sq ft/l000 sq ft commercial 4. PeoplelEQR 275 WaterlEQR (gldJ 275 5. Occupancy rate 70% - 90% No change 6. cu · Domestic: % 3.33% w/o small w small 5% . total 47.1 AF/yr wells wells 32.65 · Landscape: · Acreage (Ac) 31. 7 Ac 20.3 Ac 17.0 Ac 10.1 · Demand (AF/Ac) 1.39 AFI Ac 1.39 AF/Ac 1.39 AFI Ac · cu (AFI Ac) 1.18 AF/Ac 1.18 AF/Ac 1/18 AF/Ac 10.1 · cu (AF/year 37.4 AF/year 23.9 AF/yr 20.0 AF/yr · Efficiency % 85 85 85 7. Total Demand (AF/yr) 1459 901 (w/o small wells) 263 AF/yr 748.9 (wI small wells) 16 P:9S-022.001p/augplanmemo . Case Nl! 86CW256 Case Nil 98CW401 Case Nil 83CW362 Item (Original Maryvale) (Proposed Maryvale Amended) (Forest Meadows) 8. Total cu (AF/yr) 84.5 53.0 (w/o small wells) 45.7 (wI small wells) 9. Storage in Detention Fill wI excess cu credits from No change except to increase Storage reservoir with 4.08 Reservoirs and Expanded Cozens Ditch storage volume of reservoirs surface acres. Maryvale Reservoir May 15 - Aug 15 . 10. Dry up Annually dry up land to provide No change Aug. water. Dry up is permanent. 0.928 AF of cu water/Ac of dry up. (p 10) 10-yr running average. 0.3168 AF/Ac winter return flow. 11. Winter Park West Applies. Paragraphs 1.A - E. No change Stipulation requires monitoring and Regs protect Winter Park West water rights. 12. Cozens Ditch Diversion for 0.01 cfsl Acre of dry up No change Augmentation 0.015 cfs/Ac abandoned to stream 13. Diversions limits and other · Less than 1600 gpm and 1459 . No change Less than 2630 AF in 100year period limits AF/yr from wells from wells . . 16 wells or fewer · No change 2 wells, plus more can be added · Less than 5,516 EQRs · Less than 3401 EQRs w/o small capacity wells or 2829 EQRs w/small capacity wells . IMFU = 0.8 EQR · No change . 1 motel unit = 0.35 EQR · No change · 1000 ff retail = 0.3 EQR · No change · 1000 ff office = 0.6 EQR · No change 17 P:9S-m2.001p/augplanmemo ýÿ . Case Nil 86CW256 Case Nil 98CW40l Case Nil 83CW362 Item (Original Maryvale) (Proposed Maryvale Amended) (Forest Meadows) · Less than 31.7 Ac of municipal · Less than 20.3 w/o small capacity lawns and open green areas wells and 17.0 Ac w/small capacity wells. 14. Accounting (p 13) During Domestic use = No change except for the following: May - Sept; calculate each . week: Total Irrigation Calculate Domestic Use Depletions: Well - Demand Pumping EQRs under X 0.00853/AF/yr big wells EQRs under X 0.02565 AF/yr small wells Irrigation Demand = The .00853 is based on 3.33% cu of 0.2565 AF/yrlEQR demand (p 5 of Landscape AFof 86CW258). The .00853 is the same Irrigated X Irrigation in the original decree and in Acreage Demand 98CW401. The 0.02565 is based on 10% CU because of leach fields. During Oct - April, all use is domestic, no irrigation. . Calculate Domestic Use Depletions; Domestic = Domestic x .033 Depletions Use Calculate Irrigation Depletions: Irrigation = Irrigation x 0.85 Depletions Demand 18 P:9S-022.001p/augplamnemo ýÿ , Case NSI 86CW256 Case Nil 98CW401 Case NSI 83CW362 Item (Original Maryvale) (proposed Maryvale Amended) (Forest Meadows) 15. Accounting Regis has the burden of showing that there are no unexplained reductions in the river between Maryvale and the Hammond Nil 1 Ditch. Therefore, it is necessary to install gages on the river and its . tributaries upstream from the Hammond Nil!. Otherwise, you've got to augment the Hammond Nil 1. 16. Continuing Jurisdiction 10 years after 1600 gpm is pumped. No Change Apparently Forever 17. Structures to be Augmented 16 wells in Regis Maryvale 16 wells in Regis Maryvale Fraser Wells 1 and 2 plus future wellfield well field wells 18. EQRs (or units) . Single Family units ..().. -0- 30 units · Multi-family units 5521 3327 - 480 units · Hotel/lodge units 2466 1420 - 500 units . Retail space (ff) 272,650 459,000 - . Office space (ff) 257,350 51,000 - . Commerciallmuni -0- -0- 130.000 sq ft · Total EQR 5516 EQR 340lEQR 2829 EQR 10 10 units . (w/o small wells) (w/small wells) 19. 1. Max to release from storage to: a. replace out of priority 76.6 AF/year 67.6 wlo small wells depletions during non- irrigation season. b. maintain historic 64.2 wI small wells No requirements to maintain historic winter return flow winter return flows. patterns in paragraph 11.1 of decree. 19 P:9S-022.001p/augplanmemo --.- - ýÿ ~ .. Case NR 86CW256 Case Nl! 98CW401 Case NR 83CW362 Item (Original Maryvale) (Proposed Maryvale Amended) (Forest Meadows) 20. More on cu P 5: Alternative parcels (w/o small wells): (2829 EQRs) total 2829 - 91 = 2738 EQRs supplied by 16 wells. 2738 x .00853 = 23.355 AF/yr . domestic Cll 91 EQRs supplied by small wells 91 x .02565 = 2.334 Total = 25.689 Cll for domestic property . P 5: Irrigation w/o small w/small wells wells Acres 20.3 17.0 Irrig Reg 28.2 23.4 Cll 23.4 20.0 Domestic Cll 25.7 23.4 Totalcll 49.1(?) 43.4(?) . 20 P:9S-022.001p/augplamnemo -------