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FIRST AMENDED AGREEMENT ESTABLISHING THE LAKE DURANGO WATER AUTHORITY �'��S �'��5� �I�ItF��3 r�G�t��A�i�11t to establish the Lake -Durango V�ater Authority is entered into by Durango West Metropolitan District No. 1("DW1"), Durango West Metropolitan District No. 2("DW2") and La Plata County ("LPC"), each a quasi-municipal corporation and political subdivision of the State of Colorado, all situated in La Plata County, Colorado, and hereafter referred to individually as a"Member" and collectively as the "Members". This First Amendment amends Sections 2.2.c and 6.7.a and was approved by the Board of Directors of DWl at a meting on July 1, 2009, by the Board of Directors of DW2 at a meeting on June 17, 2009, and by the Board of County Commissioners of LPC at a meeting on July 14, 2009. All other sections of the Agreement are hereby re-affirmed. PREAMBLE The Members to this Agreement acknowledge that local governments can increase their efficiency and their effectiveness through cooperative efforts for the provision of water service within La Plata County. The crearion of this water authority will allow for public ownership and operation of a water system that will provide domestic water service to portions of western La Plata County. RECITALS A. Each of the Members is autllorized to own and operate water systems or facilities within its respective jurisdiction. B. Pursuant to the provisions of the Colorado Constitution, Article XIV, _�_ 18(2)(a) and (2)(b), and C.R.S. §29-1-201, et seq. (the "Intergovernmental Relationships Act" or the "IGA Act"), the Members have the authority to enter into an intergovernmental agreement which will establish a water authority as a separate governmental entity in order to make the best use of their joint resources to effect the development of water resources, systems, or facilities in whole or in part for the benefit of the inhabitants of such Members; to further develop domesric water -2-