PROJ00198

• Contract/PO #: C153668
• Contractor Name: Erie, Town of
• Contract Type: Loan
• Water District: 0
• County: Weld
• Bill Number: SB 90-41
• Loan Projects - Doc Type: Contract Documents

~'-)

Allottee agree. that non-performance by SWSP Enterplise of its obligations to
design. construct. operate maintain. repair and replace the Pipeline shall result
in damages to Allottee which Will be dJfilcolt to calculate and for which there
may not be an adequate remedy at law, Therefore. SWSP Enterprise and
Allottee agree that. so long as the PartiCipants have provided SWSP Enterprise
adequate funds to design. construct. operate. maintain. repaJr and replace the
Pipeline under this Contract, in the event of non-performance by SWSP
Enterprise. Allottee shall have the light to a remedy of spec1f1c performance to
require SWSP Enterprise to perform its obligations as set forth herein or the
right to damages. or both. The SWSP Enterplise's fmanclal obligations to
design. construct. operate. IIlll.intain. repair and replace the Pipeline under thiS
Contract shall be payable solely out of the assets and revenues of the SWSP
Enterprise: provided. however. SWSP Enterprise shall be liable for its negligence
or gross negligence. The Allottee does not waive any light of action that it may
have aga1nst the SWSP Enterplise or the DiStr1ct for liability ariSing from tort.
subject and pursuant to applicable law. In no event shall the SWSP Enterplise
be required to expend any money from taxes which is in violation of Section
20(4) of Article X of the ColoI'3do Constitution in the performance of its
obligations under thiS Contract or which would cause SWSP Enterplise to lose
its enterplise status as such 9tatus is defmed in the Colorado Constitution.

c. The SWSP Enterprise warrants and represents that the Dlstrtct has the lawful
and phYSical ability to constnlct. operate. maintain and utilJze the Carter Lake
Dam No. 1 Outlet Works and the St. Vrain Supply Canal. and any other federal
facilities owned by the U.S. Bl1reau of Reclamation (collectively, the "Federal
Facilities") for the purpose of delivering water from the Carter Lake Dam No.1
Outlet Works through the Pipeline at the capacities allotted to the Participants
subject and pursuant to the Repayment Contract dated July 5, 1938, between
the DiStrict and the U.S. Bureau of Reclamation. as amended. and the Special
Use Permit Contract No. 2-LM-60-L2308. iSsued to the Dlstrtct by the U.S.
Bureau of Reclamation. The SWSP Enterprise covenants that it shall comply
With all terms and conditions of said Special Use Permit and maintain It in full
force and effect throughout its term. and that it shall successively apply for the .
issuance of new permits. if necessary. in order to ensure that there Is no lapse
in the SWSP Enterprise's rights to access the Federal Facilities for use in
connection with the Pipeline. provided that PartiCipants have provided the SWSP
Enterprise with adequate funds to operate, maintain. repair and replace the .
Pipeline under the Contract.

d. The SWSP Enterprise agrees to design, construct. complete. operate. maintain,
repair and replace the Pipeline in accordance with applicable federal. state and
local laws, including. but not !1mited to, those Colorado statutes which require
pOSting of performance and labor and matelial bonds and withholding of
retainage.

e. Allottee's lights in the Pipeline shall not include:

I. Capacity in Carter LaJte Outlet Works Modificatlon Above the Total
Capacity Allotted to Participants. Except as provided in paragraphs
2.d. and 2.e. above, any capacity in the Carter Lake Outlet Works
Modification above the total capacity allotted to Participants shall belong
to the SWSP Enterplise. This capacity may be used by the SWSP
Enterprise. allotted to any Participant or future Participant at the sole
discretion of the Board or allotted to any other Entity at the sole
discretion of the Board upon payment of a fee so long as the fee equals
or exceeds the cost of SWSP Enterprise in creating such capacity. If the

6