C153568 3/27/12

• Contract/PO #: C153568
• Contractor Name: Coon Creek Reservoir & Ditch Company
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Loan Projects - Doc Type: Contract Documents

the project facilities and any other property identified in
paragraph A.14. below. The Contractor shall maintain
comprehensive general liability insurance covering the
management, operation, and maintenance of the project from the
time it accepts the constructed project as substantially
completed until it completes repayment to the State, in at
least the following amounts:
a. For any injury to one person in any single
occurrence, the sum of Five Hundred Thousand Dollars
($500,000).
b. For any injury to two or more persons in any
single occurrence, the sum of One Million Dollars
($1,000,000).
C. For any damage to property, the sum of Four
Hundred Thousand Dollars ($400,000) for each
occurrence.
Said general liability insurance shall name the State
as a co- insured. A copy of a certificate of said
liability insurance must be filed with the State prior
to the start of the operation of the project system.
Such certificate shall be incorporated herein as part
of this contract.
8. Make the services of said project available within its
capacity to all persons in the Contractors service area
without discrimination as to race, color, religion, or natural
origin at reasonable charges (including assessments, taxes, or
fees), whether for one or more classes of service, in
accordance with a schedule of such charges formally adopted by
the Contractor through its elected officers and, as may be
modified from time to time. The initial rate schedule must be
approved in writing by the State before any such'•charges are
initially assessed. Thereafter, the Contractor`may, subject to
the approval of the State, make such modifications to the rate
schedule as the Contractor deems necessary to efficiently and
economically provide for the financial requirements of the
system, including repayment of the State, as long as the rate
schedule remains reasonable and non- discriminatory.
9. Pursuant to its By -Laws, adjust its operating costs and
service charges and seek from its stockholders sufficient
annual assessments from time to time as necessary, upon written
notice from the State, to provide sufficient funds for adequate
operation and maintenance, emergency repair services,
obsolescence reserves, and debt reserves so as to assure
repayment of the project loan to the State as provided herein.
Should the stockholders fail to set any assessment, the
Contractor shall establish an adequate assessment for purposes
of this contract pursuant to C.R.S. 7- 42- 104(2).
10. Pursuant to its Articles of Incorporation and to its
By -Laws, the Board of Directors of the Contractor has taken all
necessary actions consistent therewith to adopt a resolution
authorizing the Contractor to contract this loan debt, and
authorizing the President and the Secretary to pay the
indebtedness. Such resolution is attached hereto as a part of
Exhibit A and included herein. The Contractor, through a
majority vote o the shareholders, shall also authorize the
contracting ofthis loan debt for Fifty -Five Thousand Dollars
($55,000), its %repayment by the President and Secretary, the
levying of assessments in an amount sufficient to repay and
assure repayment of the loan, the execution of a security
interest in such assessments in favor of the State, a e
execution of the warranty deed and security intere t red
by the State in paragraph A.14. below. Such sha
authorization is attached hereto as a part of E A
incorporated herein by this reference. The abov on '
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