C150111 Contract

• Contract/PO #: C150111
• Contractor Name: Akron, Town of
• Contract Type: Loan
• Water District: 1
• County: Washington
• Loan Projects - Doc Type: Contract Documents

$1,000,000 from the CWCB's Construction Fund and the State Severance Tax Trust
Fund Perpetual Base Account Fund without prior approval from the General
Assembly

SECTION 4 - BOARD ApPROVAL AND LEGISLATIVE AUTHORIZATION (IF NEEDED)

A. At its September 2002, meeting, the CWCB approved a loan to the BORROWER in
an amount up to $349,799 at an interest rate of 3.75% per annum for a repayment
term of 30 years.

B. Section 37-60-122(1 )(b) C.R.S., authorizes the CWCB to make loans of up to
$1,000,000 from the CWCB's Construction Fund and the State Severance Tax
Trust Fund Perpetual Base Account Fund without prior approval from the General
Assembly

SECTION 5 - SCHEDULE OF EXISTING DEBT

The BORROWER has an existing REA loan dated April 1996 from Y -W Electric
Association, Inc. The current principal balance of the loan is $192,000 and it will
be paid off in November 2005. The CWCB approved the loan based on the
CWCB loan being subordinate to the REA loan.

SECTION 6 - ADDITIONAL CONTRACT REQUIREMENTS

The CWCB condition for approval that the BORROWER shall provide formal
evidence that Y-W Electric Association has agreed to grant CWCB parity status
on those annual water fund revenues in excess of $230,000 has been satisfied
by the certificate dated January 23, 2003, from the Y-W Electric Association,
incorporated herein by reference, confirming CWCB's parity status on the annual
water fund revenues in excess of $230,000.

SECTION 7 - CONSTRUCTION FUND PROGRAM PROCEDURES

A. The BORROWER shall employ an engineer, registered in the state of Colorado to
prepare plans and specifications for the PROJECT.

B. The BORROWER'S and the Engineering Consultant's Agreements and the plans and
specifications must be submitted to the CWCB staff for verification of compliance
with the terms of this Contract when available prior to bidding. Any modifications
to the plans and specifications must be approved in writing by the CWCB staff.

C. For plans and specifications for all jurisdictional dams and reservoirs, as defined
by 9 37-87-105 C.R.S., the BORROWER shall provide a letter of approval from the
State Engineer's Office prior to construction.

D. CWCB staff must be present at bidding and must approve the award of the
construction contract.

E. The BORROWER shall contract forthe construction of the work with responsible and
capable Construction Firms, which said Construction Firms shall be selected by
the BORROWER and found acceptable by the CWCB staff.

F. The BORROWER must provide a copy of the executed construction contract
documents consisting of the contractor's proposal, construction contract,