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<br />H, The STATE has reviewed a feasibility report compiled by John Van Sciver, using information
<br />provided by John Andrews, P.E. and the USDA Natural Resources Conservation Service,
<br />which is incorporated herein by this reference, and, based upon the feasibility report, the
<br />STATE determined the PROJECT to be technically and financially feasible.
<br />
<br />I. At its November 22-2S, 1999 meeting, the CWCB approved a loan to the BORROWER in the
<br />amount of $250,000, hereinafter referred to as the AUTHORIZED LOAN AMOUNT, which
<br />amount shall not exceed 25% of actual PROJECT costs, at an interest rate of 4% per annum
<br />for a term of 30 years, to finance PROJECT costs. The CWCB found that this loan qualified
<br />as an emergency loan because the PROJECT is necessary to avoid unreasonable risk of
<br />damage to crops and because the emergency condition is not the result of negligence in the
<br />operation or maintenance of the infrastructure.
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<br />J, The STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT
<br />upon mutually agreeable terms and conditions, subject to the availability of funding for that
<br />purpose.
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<br />NOW THEREFORE, in consideration of the mutual and dependent covenants contained
<br />herein, the parties agree as follows:
<br />
<br />A, The BORROWER agrees as follows:
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<br />1. Construction Fund Program Procedures. The following items are procedures the
<br />BORROWER shall follow during the construction phase of the PROJECT,
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<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,
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<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
<br />specifications must be approved in writing by the CWCB staff,
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<br />c. CWCB staff must be present at bid opening and must approve the award of the
<br />construction contract,
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<br />d, The BORROWER shall contract for the construction of the work with responsible and
<br />capable firms, hereinafter referred to as CONSTRUCTION FIRMS, which CONSTRUCTION
<br />FIRMS shall be selected by the BORROWER and found acceptable by the CWCB staff
<br />before work under this contract begins,
<br />
<br />e. 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
<br />bond, performance bond, payment bond, notice of award, nDtice to proceed, sample
<br />change order, and sample field order. After the CWCB staff verifies that these documents
<br />comply with the terms of this contract, the BORROWER may issue the notice to proceed to
<br />the CONSTRUCTION FIRMS,
<br />
<br />f, The BORROWER shall conduct a pre-construction conference at which time the eWCB staff
<br />shall have the opportunity to review and approve the construction schedule,
<br />
<br />g, If the CWCB staff determines that the PROJECT requires a resident inspector during
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<br />Chilcott Ditch Company
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