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

EXHIBIT A

Fonn 6-AC-02A (R 5/85\

No Encumbrance
TERMINATION
CONTRACT Terminates Contract
No. C-153486

THIS CONTRACT. made this ;?/ d day of iJ//-rl-<' 198~. by and between the
State of Colorado for the use and benefit of the Depart~ of ., Na tural Resources
(Colorado Water Conservation Board) ,
hereinafter referred to as the State. and'2 the Farmers Water Developmen t Comoany,
Box 387, Norwood, CO 81423,

hereinafter referred to as the contractor.

WHEREAS. 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 N fA .
GlL Account Number N/A . Contract Encumbrance Number N/A ; and

WHEREAS. required approval. clearance and coordination has been accomplished from and with appropriate
agencies: and

WHEREAS, the State and the Contractor entered into a
contract on February 15. 1987 (attached as Exhibit Band
incorporated by reference herein), which contract shall
hereinafter be referred to as the:mJ'f . ility report
contract," in which the State aD ay the Contractor
Sixty Thousand Dollars ($60,OOOJ[B purpose of partially
funding a feasibility report concern~~teurepair and
rehabilitation of the.GUrle~~ ~1lJ JJL;

WHEREAS, the feasibility~~rt contract provided in part
the following terms:

5. In consideration of the State assuming a portion
of the cost of the preparation of the said project
feasibility report. the Contractor shall pay to the
State the sum of Seventy-Seven Thousand Seven Hundred
Dollars ($77.700) provided that construction of the
subject water project is initiated within ten (10)
years of the date of this contract. The Contractor
shall fulfill this Obligation irrespective of how, or
by whom, the subject water project is financed or paid
for so long as construction is initiated within the
specified time.

6. In the event the Contractor must make payment
pursuant to the terms of paragraph 5 above, then the
said sum of Seventy-Seven Thousand Seven Hundred
Dollars ($77,700) shall be payable in-ten (10) equal
installments of Seven Thousand Seven Hundred Dollars
($7,700) each, the first installment to be due and
payable upon the January 1st next succeeding the
initiation of construction on the said water project.
SUbsequent payments shall be due and payable on January
1st of each year thereafter.

WHEREAS, the State and the Contractor intend to enter into
a separate contract (hereinafter referred to as the "project
contract") in which the State will loan the Contractor money
for the purpose of repairing the Gurley Dam; and

WHEREAS, initiation of construction to repair the Gurley
Dam will create an Obligation on the part of the Contractor to
make payments under the terms. specifically paragraph Nos. 5
and 6, of the existing feasibility report contract; and

WHEREAS, the parties agree that it would be mutually
beneficial to terminate the Contractor's separate Sixty
Thousand Dollars ($60,000) Obligation under the feasibility
report contract provided that the repayment of the Sixty
Thousand Dollars ($60,000) (Which represents the principal
amount provided by the State for the purpose of partially

395-53<*1014 '

EXHIBIT A
Page I of -1- pages

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