C153746 PIF Contract - Laserfiche WebLink

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G. Part of the DISTRICT'S Mancos Project consists of an earthen inlet canal to the Jackson Gulch Reservoir. The canal began sliding in 1994, and after inspection and monitoring by the U.S. Bureau of Reclamation ( "USBR ") and per USBR recommendations, the DISTRICT repairec the canal in both 1994 and 1995. In early fall 1996, the DISTRICT concluded that its repairs ad not stopped the slide and that it could no longer run water through the canal. Withoul performing the necessary repairs to the canal this fall, the DISTRICT will be unable to provide irrigation water to its 7,800 acres next season, and will be unable to provide municip I /industrial water to the Town of Mancos, Mancos Rural Water Company, and Mesa Verde Niational Park. . The DISTRICT /BORROWER applied to the STATE for an emergency loan to be used to finance he costs of rehabilitating a portion of the DISTRICT'S inlet canal to the Jackson Gulch Reservo r, hereinafter referred to as the PROJECT. I. A feasibility study conducted by the DISTRICT and the USBR, which is incorporated herein reference, was reviewed by the STATE and, based upon this feasibility study, the STATE d termined the PROJECT to be technically and financially feasible. J At its November 25 -26, 1996 meeting, -. the CWCB determined that the inoperable conditioii of the canal qualifies the DISTRICT /BOR ER for an emergency loan, which is necessa y to avoid unreasonable risk of injury t health and well -being and to crops. Further, he CWCB determined that these emer ndi i0 are not the result of negligence in the o eration or maintenance of the infr an t t`e viability of the PROJECT is not depende t upon further appropriations or S. Pbpon the foregoing, the CWCB approve an emergency loan to the DISTRICT / o the amount of Sixty -Two Thousand Five Hu red Dollars ($62,500), which amou ll t exceed 75% of actual PROJECT costs, at an int rest rate of 3'/2 % per annum for a of twenty (20) years to be used to finance PROJECT ToStS. K The DISTRICT /BORROWER also is obtaining a loan in the amount of $62,500 for the PROJECT rom the Southwestern Water Conservation District ( "SWCD "), and will use a portion of its wa er revenues to repay the SWCD loan. L. The STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT pon mutually agreeable terms and conditions. N�W THEREFORE, in consideration of the mutual and dependent covenants contained herein, t e parties agree as follows: A. The QORROWER and DISTRICT agrees as follows: 1. DISTRICT /BORROWER'S indemnification of the STATE. The DISTRICT /BORROWER shall, without Expense Or legal liability to the STATE, manage, operate, and maintain the PROJECT in an efficient 3nd economical manner. The DISTRICT /BORROWER agrees to indemnify and hold the STATE hai mless from any liability incurred by the STATE as a result of the STATE'S interest in the PROJECT fi3cilities. 2. DISTRICT /BORROWER'S liability insurance. Upon execution of this contract and continuing until complete repayment of the loan is made to the STATE, the DISTRICT /BORROWER shall maintain commercial general liability insurance with a company that is satisfactory to the Page 2 of 12