PROJ00327

• Contract/PO #: C153465
• Contractor Name: City of Cortez and Dolores Water Conservancy District
• Contract Type: Loan
• Water District: 71
• County: Dolores
• Bill Number: HB 83-1102
• Loan Projects - Doc Type: Contract Documents

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AMENDMENT '# 1 Reduce Encumbrance
PROJECT
CONTRACT From: $2,351,902.00
To: 1~430,705.51
THIS CONTRACT. made this / %~ O{~"A ...."AI./Iof 198 ;i . by and between Ihe
Stale of Colorado for the use and oent'fil of loe Dep menl of 'I iatural Resources
(Colorado Water Conservation Board).
hereiflaher ",{erred to as the Slate. :lnd '2 the Dolores Water Conservancy DisTrict.
P.O. Box 1117. Cortez. CO 81321. and the Citv of Cort~7 ?01 t MAin St..
Cortez 1 CO ~1321, her.ei~after referred to collectively as the contractor/
Contractor.
WHEREAS. authoriry e~islS in the law and Funds h3\'(, been budgeted. appropriated and otherwise made
;jIvailahlr and a sufficil"nt unencumbered bal::mce the~of remaim lIvailable for pavmenl in Fund r.;umber 4008
elL Account Number 5401X. (ontract E.ncumbrance NumberC153465: a"nd
ABL Account No. 14011, Org. Unit 77-77-777,
WHEREAS. re4uirl.'d appro\l:.I. clellrllnce and coordination ha!; been accomplished from and wilh appropriate
lIgt'nC"ies; and

WHEREAS. the State and the Contractor did on May 1. 1986,
enter into a contract for State participation in the
construction of a pipeline between the outlet of McPhee Dam and
the Cortez water treatment plant for the benefit of the
citizens of the City of Cortez in Montezuma County, Colorado:
and

WHEREAS. paragraph A.s. of that contract requires the
Contractor to execute a warranty deed conveying certain
described real property to the State as security for the loan:
and

WHEREAS. the Contractor desires to amend paragraph A.s. of
that contract to substitute a mortgage interest in that same
real property for the warranty deed currently required; and

WHEREAS, pursuant to section 37-60-120 (1), CRS (1987), the
State is required to have ownership. or to take a sufficient
security interest. or to impose other Obligations. as will
assure repayment of the project loan to the State: and

WHEREhS. the State is willing to accept the proposed
substitution of the mortgage interest for the warranty deed
required by paragraph A.S. provided that prior to the execution
of this amendnlent the City of Cortez lawfully adopts a specific
ordinance. which shall be irrepealable for the periOd of the
project loan. which ordinance shall authorize the City of
Cortez to enter this contract amendment and Which shall pledge
the full faith and credit of the City of Cortez to repay the
project loan in the event of default: and

WHEREAS. the parties recognize that the requirements of
Article XI. Section 6. of the Colorado Constitution are not
applicable to this project loan water supply debt. and that the
p1edge of credit by "the City of Cortez applies only to the
obli9ation of the city under the contract amendment and is not
in aid of any other person or in payment of any debt. contract.
or liability of any other person: and

WHEREAS. the cost of construction of the project was less
than what was originally estimated; and

WHEREAS, the parties desire to amend the project contract
to decrease the amount of the project loan consistent with this
revised cost.

NOW, THEREFORE. in consideration of the mutual and
dependent covenants herein contained. it is agreed by the
parties hereto as follows:

S640E

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