C150207 Contract & Amend 1

• Contract/PO #: C150207
• Contractor Name: East Mancos Highline Ditch Company
• Contract Type: Loan
• Water District: 0
• County: Montezuma
• Loan Projects - Doc Type: Contract Documents

hundred percent interest in any rights that the BORROWER holds in th@ PROJECT
consisting of approximately 28,000 feet of pipeline and the associated access
easement rights as more particularly described in the attached Deed of Trust
("Collateral").
SECTION 7— ADDITIONAL CONDITIONS & CONTRACT REQUIREMENTS
The CWCB approved the loan with the following conditions:
1. The BORROWER shall provide a copy to the CWCB of the executed USDA
Conservation Program Contract to verify that the USDA would provide
engineering services and a grant for 75 percent of the final construction cost.
Copy of said contract included with the above Feasibility Study referred to in
Section 2 above.
2. Security for the loan includes (1) a pledge of assessment revenues backed by an
assessment covenant, (2) a debt service reserve fund equal to two annual loan
payments (one payment set aside at the time of contract execution and one third
of an annual payment set aside at the time the first three annual loan payments
are made} and (3) a security interest in the BORROwER Funding Agreement,
which Funding Agreement shall include a"step-up" provision that requires the
Funding Agreement signatories to make the entire annual loan payment to the
CWCB in the event any of the members fail to pay their assessed share amount
pursuant to the Funding Agreement.
3. Within ten (10) working days after receipt of the 75% cost share portion
reimbursement from the USDA, the BORROWER Shall submit to the CWCB an
amount equal to the reimbursement. The USDA reimbursement will be applied to
the outstanding principal loan balance, and the Loan Contract shall be amended
to the reduced loan amount.
SECTION 8— CONSTRUCTION FUND PROGRAM PROCEDURES
A. The BORROWER Shall employ an engineer, registered in the state of Colorado to
prepare pians and specifications for the PRO�ECr.
B. Th@ BORROWER 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
§ 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 bid opening and must approve the award of the
construction contract.
E. The BoRROwER shall contract for the 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,
performance bond, payment bond, notice of award, notice to proceed, sample
Appendix 1 to Loan Contract C150207
Page 2 of 4