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<br /> system continuously in an efficient and economical manner and assume all
<br /> legal liability for such management, operation and maintenance.
<br /> 5. Make the services of said project available within its capacity to
<br /> all persons in the Contractor's service area without discrimination as to
<br /> race, color, religion, or natural origin at reasonable charges, including
<br /> assessments, taxes, or fees in accordance with a schedule of such charges,
<br /> whether for one or more classes of service, formally adopted by the Contractor
<br /> through its board of directors, as may be modified from time to time by the
<br /> Contractor. The initial rate schedule must be approved by the State. There-
<br /> after, the Contractor may make such modifications to the rate schedule as the
<br /> Contractor deems necessary to efficiently and economically provide for the
<br /> financial requirements of the system as long as the rate schedule remains
<br /> reasonable and non-discriminatory and subject to the approval by the State.
<br /> 6. Adjust its operating costs and service charges from time to time to
<br /> provide for adequate operation and maintenance, emergency repairs services,
<br /> obsolescence reserves, debt service, and debt reserves.
<br /> 7. Expand the system from time to time to meet reasonable growth or
<br /> service requirements in the area within its jurisdiction.
<br /> 8. Provide the State with such periodic reports as it may require and
<br /> permit periodic inspections of its operations and accounts by a designated
<br /> representative of the State. The Colorado Water Conservation Board, its
<br /> agents, and employees, is hereby designated as the agent of the State for
<br /> the purposes of this contract.
<br /> 9. To purchase from the State all of the State's right, title, and
<br /> interest in said project and any facilities thereof at a total purchase
<br /> price of One Million One Hundred Twenty-Nine Thousand Nine Hundred Fifty-
<br /> One Dollars and Twenty Cents ($1,129,951.20) payable in forty (40) annual
<br /> installments of Twenty-Eight Thousand Two Hundred Forty-Eight Dollars and
<br /> Seventy-Eight Cents ($28,248.78) each, which first installment shall be due
<br /> and payable on August 1, 1982, and yearly thereafter un' ; t'e entire
<br /> principal sum shall have been paid. Said installment •, ; :4 be made
<br /> payable to the Colorado Water Conservation Board, ayab - es of
<br /> said Board in Denver, Colorado.
<br /> 10. Upon default in the payments herein set o to he
<br /> Contractor, or in the performance of any covenant or ag m t ned
<br /> herein, the State, at its option, may (a) declare the entire p amount
<br /> then outstanding immediately due and payable (b) for the account of a Con-
<br /> tractor incur and pay reasonable expenses for repair, maintenance and
<br /> operation of the water system herein described and such other reasonable
<br /> expenses as may be necessary to cure the cause of default; and/or (c) take
<br /> possession of the system, repair, maintain, and operate or lease it. The
<br /> provisions of this contract may be enforced by the State, at its Option
<br /> without regard to prior waivers by it of previous defaults by the1Contractor,
<br /> through judicial proceedings to require specific performance of this contract
<br /> or by such other proceedings in law or equity as may be deemed necessary by
<br /> the State to insure compliance with provisions of this contract and the laws
<br /> and regulations under which this contract is made.
<br /> B. The State agrees that it will:
<br /> 1. Make available to the Contractor for the purpose of this contract the
<br /> sum of Six Hundred Fifty-Three Thousand Dollars ($653,000) . Said Six Hundred
<br /> Fifty-Three Thousand Dollars ($653,000) shall be made available to the Contractor
<br /> in accordance with the following terms, schedule and conditions.
<br /> raj Beginning with the monthly period commencing S ep tc? ka
<br /> T 1 , 1980, and
<br /> for every month thereafter until said project has been completed, the
<br /> Contractor shall prepare with the consulting engineer's help, an .estimate
<br /> of the funds required from the State for project construction during that
<br /> month and shall forward said estimates to the State not less than fifteen
<br /> (15) days prior to the beginning of such month.
<br /> (b) Upon receipt and approval by the State of such monthly estimate, the
<br /> State will, within forty (40) days from the receipt of such'estimate, pay
<br /> over to the Contractor the amount of the monthly estimate or such portion
<br /> thereof as has been approved by the State.
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