PROJC02548

• Contract/PO #: C153375
• Contractor Name: Canon City, City of
• Contract Type: Loan
• Water District: 12
• County: Fremont
• Bill Number: SB 81-439
• Loan Projects - Doc Type: Contract Documents

. ~
Said liability insurance shall name the State as a co-insnred.
A copy of a certificate of said liability inaurance must be filed
with the Colorado Water Conservation Board prior to the start of
the operation of the project system.
8. Make the services of said watec system available aithin
its capacity to all persons in the Contractor's service area without
discrimination as to race. color, religion or national origin at
reasonable charges inclnding assessments, taxes or fees in accordance
with a schedule of auch charges, whether f or one or more classes
of service, formally adopted by the Contractor through its City
Council as may be modified from time to time by the Contractor.
The initial rate schedule shall be approved by the State. There-
after, the Contractor may make such modifications to the rate
schedule as the Contractor deems necessary to efficiently and
economically provide for the financial requirements of the systemt
such modifications shall be approvea by the State so long as said
rate schedule remains reasonable and non-discrimfnatory. The parties
hereto specifically recognize that Contractor's rate scheanle
presently reflects different rate classifications based upon
Contractor's contractval obligatfons to certain water users as
well as classifications based upon types of use and the location
of users within and without Contractor's municipal boundaries.
9. Adjust its operating costs and service charges from time
to time to provide for adequate operation and maintenance, emergency
repair services, obsolescence reserves, and debt reserves.
10. Expand the water system from time to time, consistent with
the ordinances, rules and regul of the City of Canon City,
to meet reasonable growth o ~quirements in the area within
its jnrisdiction. ~
11. Provide the Stat t c~ ~lodic reports as it may
require and permit peri i~Tns of its opezations and
accounts by a designated r e entative of the State.
12. Purchase from the State all of the State's right, title
and interest in the project facilities thereof at a total purchase
price of Four Hundred Thousand S ableAina30 nnu l~ins allmentsaof
Ninety Cents ($400,761.90) pay Three
Thicteen Thousand Three Aundred Fifty-Eight Dollars and Seventy-
Cents ($13,356.73) each- which first installment shall be due and
payable on April 1, 1984, and yearly thereafter until t ents shall
principal sum shall have been paia. Said installment PaYm able
be made payable to the Colorado Water Conservation Board, pay
at the offices of said Board in Denver, Colorado.
13. Obtain and maintain general fire and hazard insurance on
the project facilities in an amount not less than the amount owinq
to the State for purchase of the project facilities until the
Contractor has purchased the project facilities. The State shall
be named as a co-insured of this policy. The purchase price payable
to the State shall be reduced in the amount of any payments made
to the State under this insurance coveragef if only a portion of
the purchase price is paid to the State under this policy. the number
of installment payments shall remain unchanged, however, the amount
of each payment shall be reduced.
14. Comply with Construction Fund Program Procedures attached
hereto as Schedule A.
15. Comply with the provisions of Section 5 of S.B. 439, 1981
Session of the Coloraclo General Assembly, except as specifically
modified insofar as the amount of monies provided and the term of
repayment provided in this agreement.
C. Opon default in the payments herein set forth to be made by
contained herein,~ the Stateerat itseoption mayn(a) declaremthe
page 3 of 9