C153719 Contract

• Contract/PO #: C153719
• Contractor Name: Johnstown, Town of
• Contract Type: Loan
• Water District: 13
• County: Larimer
• County: Weld
• Bill Number: SB 94-029
• Loan Projects - Doc Type: Contract Documents

Said general liability insurance shall name the BORROWER and the STATE as additional insured. An
additional insured endorsement and a current copy of a certificate of said liability insurance must be
provided to the STATE prior to beginning of construction and maintained until construction is
complete. No payments shall be made to the BORROWER unless all insurance certificates are current.
Notices of renewals of said policies shall also be filed with the STATE as they occur.

During the time of construction, the STATE reserves the right to increase the above amount of
insurance so that said amounts at a minimum correspond to the amounts established by the Colorado
Governmental Immunity Act, now and as hereafter amended.

5. BORROWER'S indemnification of the STATE. The BORROWER shall, without expense or legal
liability to the STATE, manage, operate, and maintain the PROJECT continuously in an efficient and
economical manner. The BORROWER agrees to indemnify and hold the STATE harmless from any
liability incurred by the STATE as a result of the STATE'S interest in the PROJECT facilities.

6. BORROWER'S liability insurance. Upon execution of this contract and continuing until complete
repayment of the loan is made to the STATE, the BORROWER shall maintain commercial general liability
insurance with a company that is satisfactory to the STATE covering the management, operation, and
maintenance of the PROJECT with minimum limits of $1,000,000 combined single limit for each
occurrence and $ 2,000,000 general aggregate, including products/completed operations and personal
injury.

Said general liability insurance shall name the STATE as additional insured. A copy of a certificate
of said insurance and an additional insured endorsement must be filed with the STATE. Evidence of
current insurance coverage is to be provided as renewals occur. No loan funds shall be advanced
by the STATE without evidence of said current coverage. Throughout the life of this contract, the
STATE reserves the right to increase the above amount of insurance so that said amounts at a
minimum correspond to the amounts established by the Colorado Governmental Immunity Act, now
and as hereafter amended.

7. TOWN'S and BORROWER'S authority to contract. The TOWN and the BORROWER warrant that
both the Board of Trustees of the TOWN and the governing body of the BORROWER have complied with
all statutory and other requirements and duly pas$ed ordinances, which shall be irrepealable during
the term of this contract, authorizing:

a. The TOWN and the BORROWER to enter into and comply with the terms of this contract with
the STATE;

b. The TOWN to fix and collect water charges and fees sufficient to payoff the loan made under
this contract and establish a reserve debt service fund by making an annual deposit equivalent
to one-tenth of an annual payment every year for 10 years, and to replenish that fund anytime
it i.s depleted;

c. The TOWN to set aside sufficient revenues each year to pay the annual installment in a special
account, separate and apart from other revenues of the TOWN and the BORROWER;

d. The TOWN and/or the BORROWER to establish a certificate of deposit account in the amount of
one annual loan payment ($147,033.03) as security for the loan, as described in the Collateral
Provisions of this contract;

e. The TOWN and the BORROWER to sign a security interest in the revenues pledged herein;

Town of Johnstown Water Activity Enterprise
& Town of Johnstown Page 4 of 14

Loan Contract