C153774 Letter of Default

• Contract/PO #: C153774
• Contractor Name: Pinon Mesa Ranches Community Association
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street,Room 721 At
Denver,Colorado 80203
Phone:[phone] =+"
FAX:[phone]
Bill Owens
Governor
Greg E.Walcher
Executive Director
June 1, 2000 Peter H.Evans
CWCB Director
Dan McAuliffe
NOTICE OF PROJECT DEFAULT AND REPAYMENT SCHEDULE Deputy Director
Pinon Mesa Ranches Community Association
Mr. Les Crews,President
300 Angus Road
Ignacio, Colorado 81137
Re: Contract Number C-153774—Pinon Mesa Ranches Outside Irrigation System
Dear Mr. Crews:
This letter is to advise you that the work described in the above referenced Contract has not been
completed within the Contract time limitations, which have been extended by over seven months.
Paragraph A.2 of the Contract required completion of the project by October 9, 1999. The Pinon Mesa
Ranches Community Association (PMRCA) requested an extension of time by letter dated July 27, 1999
from Mr. John C. Booth, which the Colorado Water Conservation Board(CWCB) staff granted. Further,
after recently observing the condition of the project and reviewing project documentation, it is the opinion
of the CWCB staff that the project will not be completed within the near future. In accordance with the
terms of the Contract, the PMRCA is in default in performing the requirements of paragraph A.2. of the
Contract. Paragraph A.13. of the Contract provides that the CWCB may take any appropriate action in
the event of"default in the performance of any covenant or agreement contained"in the Contract.
At this time, the PMRCA owes $16,638.25 to the CWCB for interest during construction, as
calculated on the attached spreadsheet, with the interest due on July 1, 2000. Additionally, as outlined in
the Promissory Note, attached to the Contract as Appendix B, your first loan payment in the amount of
$9,712.28 is due on June 1, 2001. Please see the attached Repayment Schedule.
Please make your checks payable to the Colorado Water Conservation Board and include the
Contract Number on the check. Also, please provide a current certificate of project liability insurance as
described on page 4, paragraph A.6. of the Contract. A current certificate should be submitted each year
with your loan payment to verify an up-to-date policy.