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2.) <br /> <br />3.) <br /> <br />4.) <br /> <br />terminated by the District for any of the reasons listed <br />in this agreement. During that phase, the City's <br />potential financial exposure would range from <br />$109,000.00, which is the first payment after the <br />contingencies are fulfilled, up to $306,000.00, which is <br />the City's full share of the preliminary and final design <br />costs. <br />The construction costs come in in December above what <br />were anticipated and as a result, the City feels it's too <br />expensive to proceed with the project. At that point, <br />the City could opt out. The City's financial exposure at <br />that point would be anywhere from $306,000.00 up to <br />$906,000.00, which includes the potential liability of up <br />to $600,000.000 to Broomfield for the increased costs to <br />them for using the western alignment. <br />The possibility that Amendment 1 will require one or more <br />elections to be held in order for this to move forward. <br />Shimmins anticipates having Susan Griffiths, City <br />Attorney, review this Agreement for Amendment 1 concerns. <br />Everything being discussed here is pipeline construction <br />costs. It does not include the cost of purchasing water <br />to run through the pipeline. That is something that will <br />have to be done in the future. A possibility exists that <br />water rights could not be acquired at a reasonable cost. <br />This is a mix of Windy Gap project water and the Colorado <br />Big Thompson project water. If it turns out that the <br />City cannot acquire Windy Gap water at a reasonable <br />price, the District will work with the City to change the <br />anticipated mix, so that the existing holders of Windy <br />Gap water can't hold the City hostage. <br /> <br />Howard: <br /> <br />On Item 6, we have an exposure in <br />the event that the costs exceeds <br />$3.5 million. I don't see the pay <br />back to Broomfield of the western <br />alignment. What about the <br />$109,000.00 that we had already paid <br />to the District? Would that be <br />lost, also? <br /> <br />Shimmin: <br /> <br />Yes. <br /> <br />Howard: <br /> <br />ShJ.mmin: <br /> <br />That's also true in the case where <br />the District does not fulfill their <br />needs and further obligate <br />themselves and that we also loose <br />the money from the $109,000.00, that <br />we participated in, and we have a <br />further exposure from Broomfield? <br /> <br />No. If the District terminates the <br />project, you're not going to have an <br /> <br />4 <br /> <br /> <br />