C153748 Contract

• Contract/PO #: C153748
• Contractor Name: Excelsior Irrigating Company
• Contract Type: Loan
• Water District: 14
• County: Pueblo
• Loan Projects - Doc Type: Contract Documents

for augmentation in the spring of 1997.
I. C.R. Evans, the majority stockholder of the BoRROwER, has agreed to convey a security interest to
the STATE in certain property owned by him as an individual as part of the security for this loan. In
addition, the Alamosa National Bank has agreed to subordinate its security interest to the CWCB.
J. At its November 25-26, 1996 meeting, the CWCB approved a loan to the BoRROwER in an amount
not to exceed $100,000 (approximately 74% of the cost of the PRO~ECT) at an interest rate of 3.75%
per annum, and for a duration of 30 years.
K. The STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT upon
mutually agreeable terms and conditions.
NOW THEREFORE, in consideration of the mutual and dependent covenants contained, the parties
agree as follows:
A. The BoRROwER agrees as follows:
1. Construction Fund Program procedures. The following items are procedures the BoRROwER shall
follow during the construction phase of the PRO~ECT:
a. The BORROWER shall employ a professional engineer, registered in the State of Colorado,
hereinafter referred to as the CONSULTANT, to prepare plans and specifications for the PRO~ECT.
b. The agreement befinreen the BoRROwER and the CoNSU~TANT and the plans and specifications
must be submitted to the CWCB staff for verification of compliance with the terms of this contract
prior to bid opening. Any modifications to the plans and specifications must be approved in writing
by the CWCB staff.
c. CWCB staff must be present at bid opening and must approve the award of the construction
contract.
d. The BoRROwER shall contract for the construction of the work with responsible and capable firms,
he~einafter referred to as CONSTRUCTION FIRMS, which CotvsTRUCT~oN FiRnns shall be selected by
the BoRROwER and found acceptable by the CWCB staff before work under this contract begins.
e. The BoRROwER must provide a copy of the executed construction contract documents consisting
of the advertisement for bid, contractor's proposal, construction contract, bid bond, performance
bond, payment bond, notice of award, notice to proceed, sample change order, and sample field
order. After the CWCB staff verifies that these documents comply with the terms of this contract,
the BORROWER may issue the notice to proceed to the CONSTRUCTION FIRMS.
f. The BoRROwER shall conduct a pre-construction conference at which time the CWCB staff shall
have the opportunity to review and approve the construction schedule.
g. If the CWCB staff determines that the PRO~ECT requires a resident inspector during construction,
the BoRROwER shall employ an inspector who has been approved by the CWCB staff.
h. The BORROWER shall COf1StR1Ct th2 PROJECT in accordance with the approved plans and
specifications.
i. Upon completion of the PRO.IECT construction, the BoRROwER shall provide as-built drawings of
the PRO.1ECT to the CWCB staff for approval and filing.
j. Upon completion of the PRO.IECT construction, the BoRROwER shall arrange a final inspection for
the CWCB staff, CONSTRUCTION FIRM, and the CONSULTANT.
2. Time for PRO~eCT completion. The BORROWER recognizes that time is of the essence in the
performance of all of its obligations under this contract. Therefore, the BORROWER shall commence
with construction in order to complete the PRO~ECT no later than one (1) year from the date of this
contract. The time for completion of the PRO~ECT may be extended subject to the approval of the
The Excelsior Irrigating Company Page 2 of 12 Loan Contract