C150008 Contract

• Contract/PO #: C150008
• Contractor Name: Leroux Creek Water Users Association
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Contract Documents

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AGENCY NAME: Water Conservation Board

AGENCY NUMBER: PDA
ROUTING NUMBER:

$ 1,250,000

LOAN CONTRACT

THIS CONTRACT, made this /47! day of -jut... j 1999, by
and between the State of Colorado for the use and benefit of the Department of Natural
Resources, Colorado Water Conservation Board, hereinafter referred to as the CWCB and/or
STATE, and the Leroux Creek Water Users' Association, hereinafter referred to as the
BORROWER and/or CONTRACTOR.

FACTUAL RECITALS

1. Authority exists in the law, and funds have been budgeted, appropriated and otherwise
made available and a sufficient unencumbered balance thereof remains available for
payment in Fund Number 424, Organization YYYY, Appropriation L99, GBL LERO, Program
WTRC, Object Code 5120, Reporting Category: 0008, Contract Encumbrance Number
C150008.

2. Required approval, clearance, and coordination have been accomplished from and with
appropriate agencies.

3. Pursuant to the provisions of SS 37-60-119 and 37-60-120, C.R.S. (1998) the STATE is
authorized to loan money for the construction of water projects for the benefit of the people
of the STATE, provided that the borrower assures repayment of that money.

4. The BORROWER is a duly constituted Colorado water users' association formed pursuant to
SS 7-44-101 et seQ. and 7-40-101 et seQ., C.R.S., located in Delta County, State of
Colorado.

5. The Carl Smith Reservoir operates to regulate releases of water from the BORROWER'S
system. The Carl Smith Reservoir dam partially failed in May of 1998. The dam is a Class 1
structure, defined as presenting a threat to human life in the event of failure. The State
Engineer may require BORROWER to breach the dam down to the foundation to eliminate any
remaining hazard.

6. The BORROWER has applied to the STATE for a loan to be used for the rehabilitation of the
Carl Smith Reservoir Dam, hereinafter referred to as PROJECT, at an estimated cost of
$1,320,273.

7. The STATE has reviewed a feasibility report compiled by Smith Geotechnical, which is
incorporated herein by reference, and, based upon this feasibility report, the STATE
determined the PROJECT to be technically and financially feasible.

8. At its January 27-28, 1999 meeting, the CWCB approved a loan to the BORROWER in an
amount up to $1,250,000, not to exceed 90% of the cost of the PROJECT, at an interest rate

Leroux Creek Water Users' Association

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Loan Contract