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<br />steel inlet pipe connected to the existing Eldorado <br />Springs pipeline. <br /> <br />g. A gravity outlet structure with all appurtenances, <br />including about 800 feet of 24-inch RCP. <br /> <br />The warranty deed must be recorded by the Contractor <br />in the proper county or counties and all transfer taxes shall <br />be paid by the Contractor. <br /> <br />6. Permit periodic inspection of construction by <br />authorized representatives of the State during and after <br />construction. <br /> <br />7. Without expense to the State, manage, operate, and <br />maintain the project system continuously in an efficient and <br />economical manner, and assume all legal liability for such <br />management, operation, and maintenance. The Contractor agrees <br />to indemnify and hold the State harmless from any liability as <br />a result of the State's ownership of the project facilities <br />identified in paragraph 5 above. The Contractor shall maintain <br />general liability insurance covering the management, operation, <br />and maintenance of the project system until it has completed <br />purchase of the project system from the State in at least the <br />following amounts: <br /> <br />a. For any injury to one person in any single <br />occurrence, the sum of One Hundred Fifty Thousand <br />Dollars ($150,000). <br /> <br />b. For any injury to two or more persons in any <br />single occurrence, the sum of Four Hundred Thousand <br />Dollars ($400,000). <br /> <br />Said liability insurance shall name the State as a <br />co-insured. A copy of a certificate of said liability <br />insurance must be filed with the Colorado Water Conservation <br />Board prior to the start of the operation of the project <br />S%t~. <br /> <br />8. Make the services of said project available within its <br />capacity to all persons in the Contractor's service area <br />without discrimination as to race, color, religion, or natural <br />origin at reasonable charges including assessments, taxes, or <br />fees in accordance with a schedule of such charges, whether for <br />one or more classes of service, formally adopted by the <br />Contractor through its board of directors, as may be modified <br />fram time to time by the Contractor. The initial rate schedule <br />must be approved by the State. Thereafter, the Contractor may, <br />subject to the approval of the State, make such modifications <br />to the rate schedule as the Contractor deems necessary to <br />efficiently and economically provide for the financial <br />requirements of the system as long as the rate schedule remains <br />reasonable and non-discriminatory. <br /> <br />9. Adjust its operating costs and service charges from <br />time to time to provide for adequate operation and maintenance, <br />emergency repair services, obsolescence reserves, and debt <br />reserves. <br /> <br />10. Expand the system from time to time to meet reasonable <br />growth or service requirements in the area within its <br />jurisdiction. <br /> <br />11. <br />require <br />accounts <br /> <br />Provide the State with such periodic reports as it may <br />and permit periodic inspections of its operations and <br />by a designated representative of the State. <br /> <br />12. Purchase from the State all of the State's right, <br />title, and interest in said project and any facilities thereof <br /> <br />Page 3 of 8 pages <br />