CTGG12016-712 Contract Amend 1

• Contract/PO #: CTGG12016-712
• Contract/PO #: C150408
• Contractor Name: San Juan Water Conservancy District
• Contract Type: Grant
• Loan Projects - Doc Type: Contract Documents

the principal amount due from $11,217,000 to $9,219,363 to be repaid over thirty
(30) years with 3.5% interest per annum. Since that date, PAWSD has made two
annual payments of $501,269.08 each, leaving a current balance due of
$8,855,930.32. The Parties acknowledge the Loan and Grant Contract are not in
default or breach of any kind; and
WHEREAS, the Parties have agreed, one to the other, to restructure the
outstanding Grant and the Loan, on terms and conditions which will allow the
Project to go forward, provide debt relief to PAWSD, will protect the CWCB's
financial commitment to the Project, support PAWSD's efforts at conservation and
best practices allowing it to carry out its mission to ratepayers, and support SJWCD
in its mission to provide for the future water needs within its jurisdiction; and
WHEREAS, the Parties recognize the importance of holding on to the land
already purchased as a whole, that partitioning the property or selling-off parts of
the property would severely hamper and impede completion of the Project; and
WHEREAS, the CWCB has an interest in water supply and water storage for
the basin and the success of the Project given the CWCB's substantial investments
to date. While the CWCB cannot obligate future boards, it supports continued
discussions between and amongst the Parties as well as continued steady
application of effort in a reasonable expedient and efficient manner;and
WHEREAS, PAWSD and SJWCD supported a concept proposal submitted to
CWCB for this restructuring of both the Loan and the Grant, which was approved
at the January 2015 CWCB meeting; and
WHEREAS, the CWCB has been provided with a certified appraisal of the
land purchased for the Project("the Appraisal"), and is satisfied said Appraisal fully
and fairly represents the current fair market value of the property at $4,565,000—
which value includes both the fee simple estate of the land and shares in the Park
Ditch (water rights) thatirere purchased with proceeds from the Loan and Grant;
and
WHEREAS, there are additional conditional water rights associated with the
Project, which represent'a claim to approximately 11,000 acre-feet of water decreed
in Case Nos. CA 308-D and 04CW85, Water Court, Water Division 7 which are
currently subject to due diligence actions in water court. The Parties intend to
support due diligence efforts as provided hereinafter and acknowledge the
conditional water rights associated with the Project are important to the success of
the Project; and
WHEREAS, the terms and conditions to restructure the Loan and the Grant
are intended to provide the Parties with necessary financial flexibility, security and
Page 2 of 14