CT2018-2832 Contract

• Contract/PO #: CT2018-2832
• Contractor Name: Bessemer Irrigating Ditch Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

APPENDIX 1, PROJECT SUMMARY
Loan Contract Number CT2018-2832
Section 1 Borrower's Name
Bessemer Irrigating Ditch Company
Section 2—Project Description
A. Description of Project:The Borrower applied to the CWCB for a loan to be used for the Landslide
Stabilization and Ditch Lining (Project), located in Pueblo County, at a total estimated project
cost of$900,000.00 The purpose of the Project is to stabilize the ditch and maintenance road and
to line the ditch throughout the stabilized area.
B. Description of Feasibility Study: Rick Kidd, P.E., with Kidd Engineering, prepared the Loan
Feasibility Study titled, "Emergency Landslide Stabilization Project Loan Feasibility Study,"
dated November 30, 2017. The feasibility study was prepared in accordance with CWCB
guidelines and includes an analysis of alternatives, preliminary engineering design, and
construction cost estimates and is incorporated herein by this reference. Audited financial
statements were provided by the Company and prepared by McPherson,Breyfogle,Daveline and
Goodrich, PC, Certified Public Accountants. Based upon the feasibility report, the CWCB
determined the Project to be technically and financially feasible.
Section 3—CWCB's Authority
Construction Fund:This loan is made pursuant to the provisions of§§37-60-119 and 37-60-120,
C.R.S., which authorizes the CWCB to loan money for water projects from the CWCB
Construction Fund for the benefit of the people of the state, provided that the Borrower assures
repayment of that money.
Section 37-60-122(1)(b)C.R.S., authorizes the CWCB to make loans of up to $10,000,000 from
the CWCB's without prior approval from the General Assembly.
Section 4-Board Approval
At its Jaunary 22,2018,meeting the CWCB approved a Project Loan from the Construction Fund,
to the Borrower, in an amount up to $900,000.00 for Project Costs. CWCB's Origination Fee of
1%in the amount of$9,000.00 in accordance with CWCB Policy No. 16,added to the Base Loan
Amount results in a Total Loan Amount of$909,000.00,at an interest rate of 1.65%per annum for
a repayment term of(twenty(20)years.
Section 5—Schedule of Existing Debt
As of the date of the CWCB loan approval, no other debt,backed by the loan security described in
Section 6 below,exists
Section 6—Loan Security
The Security for this loan,as evidenced by the executed Security Agreement(Appendix 5) and
incorporated herein, shall be: (i)an irrevocable(but not exclusive)pledge to the CWCB of the
Pledged Revenues in such amount as is necessary to make each annual payment due under this
Contract, (ii) an assessment covenant; and(iii)an undivided one hundred percent(100%)
interest in a section of the Bessemer Ditch,as more particularly described in the attached Deed
of Trust(Appendix 6).All Loan Security shall be in accordance with CWCB Policy No. 5.
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Contract Number.CT2018-2832