C153514 PIF Contract

• Contract/PO #: C153514
• Contractor Name: Farmers Water Development Company
• Contract Type: Loan
• Water District: 60
• County: San Miguel
• Bill Number: SB 87-15
• Loan Projects - Doc Type: Contract Documents

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I UEPARTMEN'r OR AGENCY NUMBER I
34-04-00
CONTRACT ROl!TING NUMBER
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$640,000

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fonn 6-AC~2A (R SI8S)
W/FRPB
Gurley Dam

PROJECT
CONTRACT

THIS CONTRACT. made this--:/';?/hLtlday of ~A/I'V2~ 198 g , by and between the
Stale of Colorado for the use and bendit of the Depal'Hl1ent of " Natural Resources
(Colorado Water Conservation Board) ,
hereinafter rr-fe""d to as the State. and'2 the Farmers ~va ter DeveloDrnen t Cop-man\',
Box 387, Norwood, CO 81423,

m,reinafter referred to as the contractor /Contractor.

WHEREAS. authority exists in the Law and Funds have been budgeted. appropriated and otherwise made
available and a sufficient unencumbered balance thereof remains ovailable for pavment in Fund "'umber 4008
G1L Account Number 5370X. Conlract Encumbrance NumberC/"'i'1'i/i; ;nd
ABL Account No. l370a, Org. Unit 77-77-777,

WHEREAS. re4uired approval. c1e3rnnce and coordination has been accomplished from and with appropriate
agencies: and

WHEREAS. pursuant to the provisions of 37-60-119 and
37-60-120, Colorado Revised Statutes. the State is authorized
to loan money for the construction of water projects for the
benefit of the people of th,e 1~1i~rovided that the Contractor
assures repayment of that ~~~

WHEREAS. the contractofLls a dU~, nstituted corporation
in the State of Colorado ~n f' ~th s 0 repair its existing
embankment. the Gurley he i~ sometimes called the
pro ject. for the benefi ~ 'it' shareholders in San Miguel
County. Colorado. at an estimated cost of Six Hundred Forty
Thousand Dollars ($640.000); and '

WHEREAS. on February 15. 1987. the parties entered into a
feasibility report contract. attached hereto as Exhibit B. A
feasibilit~ investigation of said project was conducted and the
State has determined that such a project is technically
and financially feasible; and

WHEREAS. on . ~.~ .:J. ( . 1988. the Stat.e and the
Cont.ractor enter~ int.o a t.ermination contract attached as
Exhibit A which terminat.ed t.he Exhibit B feasibility report
contract previously entered int.o between the parties; and

WHEREAS. the termination contract provides that the
Contractor will repay to the State the principal amount of
Sixty Thousand Dollars ($60.000) under the terms and conditions
of that Exhibit A termination contract in consideration of the
State's part.ial financing of the feasibility report for the
project. pursuant to the Exhibit B feasibility contract.; and

WHEREAS. the State now desires by this project contract. to
loan money for the construction of said project upon mutually
agreeable terms and conditions. subject to the availability of
funding for that purpose; and

WHEREAS. the State and the Contractor agree that the
repayment of the feasibility report funding shall be
consolidated wit.h the repayment of the project const.ruction
loan; and

WHEREAS. pursuant ~o the Contractor's By-Laws. the
Contractor has authority to contract to borrow money provided
that a resolution be duly passed by the Board of Directors and
to levy assessments assuring repayment of the State according
to the terms of the contract; and

WHEREAS. pursuant to section I of chapter 32. Session Laws
of Colorado 1987. as amended by section 4 of S.B. 30. 1988
Session, the State has been authorized to loan Seven Hundred
Thousand Dollars ($700.000) for construction of the project.
including the cost of the feasibility study.

395-5~10t4

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