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<br />PROJECT, the BORROWER will be unable to provide a full supply of water to 6,000 acres of land
<br />irrigated from the Black Hills Reservoir, and further flooding could occur on the Model Ditch, This
<br />loan is necessary to avoid unreasonable risk of injury or damage to human health and well-being
<br />and to property and crops resulting from flooding,
<br />
<br />9, At its May 24-25, 1999 meeting, the CWCB approved a loan to the BORROWER from the
<br />Emergency Infrastructure Account in an amount up to $335,000, hereinafter referred to as
<br />AUTHORIZED LOAN AMOUNT, not to exceed 50% of the cost of the PROJECT, at an interest rate of
<br />3,75% per annum for a duration of thirty (30) years.
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<br />10, As a condition of the loan approval, the CWCB required the BORROWER to commit to comply with
<br />the requirements of the Division Engineer for Water Division 2 to install certain measuring devices
<br />and control structures and to modify facilities related to the BORROWER'S irrigation system,
<br />including the Black Hills Reservoir, The BORROWER has provided the STATE with copies of a May
<br />10,2000 letter from Steve Witte, Division Engineer, to the BORROWER and a May 17, 2000 letter
<br />from the BORROWER to Steve Witte that set forth mutually agreed upon conditions for construction
<br />of certain structures on and measurement and release of water in the Black Hills Reservoir, Said
<br />letters are incorporated herein by this reference,
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<br />11. The STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT upon
<br />mutually agreeable terms and conditions.
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<br />THEREFORE, in consideration of the mutual and dependent covenants contained herein,
<br />the parties agree as follows:
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<br />A. The BORROWER agrees as follows:
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<br />1. Construction Fund Program Procedures. The following items are procedures the BORROWER
<br />shall follow during the construction phase of the PROJECT.
<br />
<br />a. The BORROWER shall employ an engineer, registered in the State of Colorado, hereinafter
<br />referred to as the CONSULTANT, to prepare plans and specifications for the PROJECT.
<br />
<br />b. The agreement between the BORROWER and the CONSULTANT and the plans and
<br />specifications must be submitted to the CWCB staff for verification of compliance with the
<br />terms of this contract prior to bid opening, Any modifications to the plans and specifications
<br />must be approved in writing by the CWCB staff,
<br />
<br />c, For plans and speCifications for all jurisdictional dams and reservoirs, as defined by S 37-87-
<br />105 C,R.S, (1999), the BORROWER shall provide a letter of approval from the State Engineer's
<br />Office prior to construction,
<br />
<br />d, CWCB staff must be present at bid opening and must approve the award of the construction
<br />contract
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<br />e. The BORROWER shall contract for the construction of the work with responsible and capable
<br />firms, hereinafter referred to as CONSTRUCTION FIRMS, which CONSTRUCTION FIRMS shall be
<br />selected by the BORROWER and found acceptable by the CWCB staff before work under this
<br />contract begins,
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<br />f. The BORROWER must provide a copy of the executed construction contract documents
<br />consisting of the advertisement for bid, contractor's proposal, construction contract, bid bond,
<br />performance bond, payment bond, notice of award, notice to proceed, sample change order,
<br />
<br />The Model Land & Irrigation Company
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<br />Page 2 of 13
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<br />Loan Contract
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