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P. .. .: , 7 steel inlet pipe connected to the existing Eldorado Springs pipeline. g. A gravity outlet structure with all appurtenances. including about BOO feet of 24-inch RCP. The warranty deed must be recorded by the Contractor in the proper county or counties and all transfer taxes shall be paid by the Contractor. . 6. Permit periodic inspection of construction by authorized representatives of the State during and after construction. 7. Without expense to the State, manage, operate. and maintain the project system continuously in an efficient and economical manner, and assume all legal liability for such management, operation, and maintenance. The Contractor agrees to indemnify and hold t1\e State hannless fran any liability as a result of the State's ownership of the project facilities identified in paragraph 5 above. The Contractor shall maintain general liability insurance covering the management, operation, and maintenance of the project system until it has completed purchase of the project system from the State in at least the fOllowing amounts: 8. For any injury to one person in any single occurrence, the sum of One Hundred Fifty Thousand Dollars l~150,OOO). b. For any inj ury to two or ItK)re persons in any single occurrence, the sum of Four Hundred Thousand Dollars l~400,OOO). Said liability insurance shall name the State as a co-insured. A copy of a certificate of said liability insurance must be filed with the Colorado Water Conservation Board prior to the start of tne operation of the project system . 8. Make the services of said project available within its capacity to all persons in the Contractor's service area without discrimination as to race, color, religion, or natural origin at reasonable charges including assessments, .taxes, or fees in accordance with a schedule of such charges, whether for one or more classes of service, formally adopted by the Contractor through its board of directors, as may be modified from time to time by the Contractor. The initial rate schedule must be approved by the State. Thereafter, the Contractor may, subject to the approval of the State, make such mdifications ~ to the rate schedule as the Contractor deems necessary to efficiently and economically provide for the financial requirements of the system as long as the rate schedule renains reasonable and non-discriminatory. 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 systen from time to time to meet reasonable growth or ser~ice requirements in the area within its jurisdiction. 11. Provide the State with such periodic repOrts as it may require and permit periodic inspections of its operations and accounts by a designated representative of the State. 12. Purchase frcm the State all of the State's right, title, and interest in said project and any facilities thereof Page 3 of ! pages