C153514 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

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UEPARTMl;:NT OR AGENCY NUMBt::R
34-04-00
CONTRACT ROl~TIN(; Nl'lItBER
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$640,000

Farm 6-AC-OlA tR ~II~\
W/fRPB
Gurley Dam

PROJECT
CONTRACT

THIS CONTRACT. made' lhi~ ..:1....:?/h Alday of ~A.__H(! 198 g . by and bel ween (he
State of Colorado for lhe U!>C' and bent'CiI of lOt' Depa~nl of'1 Na-cural Resources
(Colorado Water Conservation Board),
hereinaiter ft'fC'rred 10 as the Slalt', and'2 the Farmers ~vater Development Ccmoaov,
Box 387, Norwood, CO 81423,
hef'C"inaitC'r rderred 10 as Iht' conlraClOr IContracTor,

WHEREAS. authority (',isls in the Law and Funds have been budgeled. appropriated and otherwise made
anilable and a sufficienl unencumbered balance thereof remains a~lable for pay men! in Fund ""umber 4 0 0 8 .
ClL Account Number~. (ontrael Encumbrance NumberClt1::t'i/-/.; ~nd
ABL Account No. l370d, Org. Unit 77-77-777,
WHEREAS. re-4uired appruval. clearance and coordination has been accomplished from and wilh appropriate'
aleRelt's: and

WHEREAS, pursuant to the provisions of 37-60-119 and
37-60-120, Colorado Revised Statutes, the State is authorized
to loan money for the construction of water projects for the
benefit of the people of the State provided that the Contractor
assures repayment of that money; and

WHEREAS, the Contractor is a duly constituted corporation
in the State of Colorado and it wishes to repair its existing
embankment. the Gurley Dam. hereinafter sometimes called the
project, for the benefit of its shareholders in San Miguel
County. Colorado, at an estimated cos~ of Six Hundred Forty
Thousand Dollars ($640,000); and

WHEREAS. on February 15. 1987, the parties entered into a
feasibility report contract. attached hereto as Exhibit B. A
feasibilIty investigation of said project was conducted and the
State has determined that such a project is technically
and financially feasible; and

WHEREAS, on ~~.-""'- .::l I , 1988, the State and the
Contractor enter= into a termination contract attached as
Exhibit A which terminated the Exhibit B feasibility report
contract previoUSly entered into between the parties; and

WHEREAS. the termination contract provides that the
Contractor will repay to the State the principal amount of
Sixty Thousand Dollars ($60.000) under the terms and conditions
of that Exhibit A termination contract in consideration of the
State's partial financing of the feasibility report for the
project pursuant to the Exhibit B feasibility contract; and

WHEREAS. the State now desires by this project contract to
loan money for the construction of said project upon mutually
agreeable terms and conditions. subject to the availability of
funding for that purpose: and

WHEREAS. the State and the Contractor agree that the
repayment of the feasibility report funding shall be
consolidated with the repayment of the project construction
loan; and

WHEREAS. pursuant ~o the Contractor1s By-Laws. the
Contractor has authority to contract to borrow money provided
that a resolution be duly passed by the Board of Directors and
to levy assessments assuring repayment of the State according
to the terms of the contract; and

WHEREAS. pursuant to section 1 of chapter 32, Session Laws
of Colorado 1987, as amended by section 4 of S.B. 30, 1988
Session. the State has been authorized to loan Seven Hundred
Thousand Dollars ($700,000) for construction of the project.
including the cost of the feasibility study.

J95-5){)1..1014

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