C150249 Contract

• Contract/PO #: C150249
• Contractor Name: Black Dike Pipeline Company
• Contract Type: Loan
• Water District: 0
• County: Montezuma
• Loan Projects - Doc Type: Contract Documents

the form attached as Appendix 5 and incorporated herein, shall be an undivided one
hundred percent (100 %) interest in any rights that the Borrower holds in the Project
consisting of approximately four (4) miles 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:
a. The BORROWER provide a copy of the executed USDA Conservation Program
Contract to verify that the USDA would provide engineering services and a grant
for $391,140.00. Copy of said contract is included with the above Feasibility
Study referred to in Section 2 above.
b. 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's 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.
c. Within ten (10) working days after receipt of the $391,140.00 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 and Promissory
Note shall be amended to reduce the loan amount and the annual payment due.
Other contract terms, including interest rate and loan repayment period shall
remain unchanged.
SECTION 8 — 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
§ 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.
Appendix 1 to Loan Contract C150249
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