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I. Pur linancing uant to 1995 Colo. Sess. Laws, Chapter 117, Section 1, the Colorado General Assembly <br />authorized the CWCB to loan to the DISTRICT /BORROWER One Million Dollars ($1,000,000) for a term of thirty <br />(30) years for PROJECT costs. <br />J. AtIthe DISTRICT'S annual meeting held on January 25, 1996, this contract was approved by a <br />majority of th landowners and electors of the DISTRICT voting on the contract. <br />K. Th DISTRICT has been approved by the United States Farm Services Agency (formerly the ASCS), <br />hereinafter ref rred to as the FSA, for a $400,000 grant for the PROJECT, which the DISTRICT shall receive upon <br />completion of he PROJECT. <br />L. Thi STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT upon <br />mutually agre able terms and conditions. <br />NOW THEREFORE, in consideration of the mutual and dependent covenants contained herein, the <br />parties agree 4s follows: <br />A. The BOR$OWER agrees as follows: <br />1. Co struction Fund Program procedures. The following items are procedures the BORROWER shall <br />follow during fhe construction phase of the PROJECT rehabilitatign.' )! _4 - <br />11 i; <br />a. I <br />prep <br />b. Th <br />be sul <br />bid of <br />CWCE <br />U.S. Natural Resources Conservation Sery <br />I plans and specifications for the PROJECT, <br />agreement between the BORROWER and the <br />pitted to the CWCB staff for verification of <br />ning. Any modifications to the plans and <br />staff. <br />to as the CONSULTANT, has <br />ans and specifications must <br />rms of this contract prior to <br />approved in writing by the <br />c. C�CB staff must be present at bid opening and must approve the award of the construction <br />contr t. <br />d. Th BORROWER shall contract for the construction of the work with responsible and capable firms, <br />hereinafter referred to as CONSTRUCTION FIRMS, which CONSTRUCTION FIRMS shall be selected by the <br />BORRCWER and found acceptable by the CWCB staff before work under this contract begins. <br />e. Th BORROWER must provide copies of executed construction contract documents consisting of the <br />adver isement for bid, contractor's proposal, construction contract, bid bond, performance bond, <br />payment bond, notice of award, notice to proceed, sample change order, and sample field order. After <br />CWC staff verifies that these documents comply with the terms of this contract, BORROWER may issue <br />then tice to proceed to the CONSTRUCTION FIRMS. <br />f. The BORROWER shall conduct a pre- construction conference at which time the CWCB staff shall have <br />the ol iportunity to review and approve the construction schedule. <br />g. If he CWCB staff determines that the PROJECT requires a resident inspector during construction, <br />the B RROWER shall employ an inspector who has been approved by the CWCB staff. <br />h. he BORROWER shall construct the PROJECT in accordance with the approved plans and <br />speci ications. <br />i. Up n completion of the PROJECT construction, the BORROWER shall provide as -built drawings of the <br />PROJEICT to the CWCB staff. <br />Orchard Me 3a Irrigation District & Page 2 of 12 Loan Contract <br />Mutual Mes3 Lateral Enterprise <br />