C150309 Time Extention

• Contract/PO #: CT2015-011
• Contract/PO #: C150309
• Contractor Name: Monte Vista, City of
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

CITY OF MONTE VISTA
4.0"1144.t s 1 www.cityofmontevista.com
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MONTE VISTA 95 1st Ave lionte vista, CO 81144
Surrounded by Inspiration Main Phone: [phone]–TDD: [phone] –Main Fax: [phone]
July 15,2014
Mr. Kirk Russell, P.E.
Colorado Water Conservation Board
1580 Logan Street, Suite 600
Denver, CO 80203
Re: Monte Vista Water Rights Acquisition for Augmentation,Contract No. C 150309
Request for Contract Amendment
Dear Mr. Russell,
Per Contract No. C 150309,the effective date of the Contract was September 23,2010. Within the
Contract, in Appendix 1 to the Loan Contract, Section 10—Time for Performance,it is specified the
Project Finish shall be"four(4)years from the Effective Date of this Contract."
The City of Monte Vista has worked in a diligent fashion to pursue both the acquisition of water rights
and the attainment of a long-term lease for water storage. The bulk of this activity took place through
2012 with the City attaining a significant amount of water rights and the storage required for that water
per the Contract. Concurrent with this correspondence,the City is making Pay Request No.4,which will
make the final installment on the water storage in Rio Grande Reservoir.
In addition to the straightforward purchases of water made in conjunction with the Contract,the City has
also pledged to purchase additional water rights. The current pledged amount totals over$237,000.
These pledges to buy are based upon additional water rights available within the two major purchases
from Lancaster and Sun Peak. However,the actual amount of water available within these rights cannot
be known for certain until the Water Court has finally adjudicated the rights.
Assuming the Water Court adjudicates the available water rights,this will leave the City with
approximately$165,000 in remaining Loan Proceeds. The City has identified particular rights and
additional storage necessary for our project. However, until the District Engineer has published the Final
Rules for the Valley, we cannot be certain of the appropriateness of this potential purchase. The Final
Rules must also be approved by the Water Court.
All of this being said, it is very likely the final rules will be appealed and the Water Court process may
take a number of years to have both the rules approved and our Augmentation Plan reviewed by the
Court. The City of Monte Vista respectfully requests an Extension of Contract No. C150309 for a period
of four(4)years from the current Time for Performance date.
Sincerely, r'.
Forrest H.Neuerburg
City Manager
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