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<br />a. A 6-inch tap provided by the City of Trinidad as <br />per water purchase contract (Appendix A) to provide the <br />Town of Starkville with water from the City of <br />Trinidad. <br /> <br />b. A meter vault and 6-inch meter to be located at <br />the south of Trinidad city limits as shown on map <br />(Appendlx B), <br /> <br />c. A 6-inch 9,000-linear-foot main from the connection <br />to Trinidad at station 0+00 water main southerly to I <br />station 90+00 in Starkville as shown on map <br />(Appendlx B). <br /> <br />3. Permit periodic inspection of construction by authorized <br />representatives of the State during constructIon and permit the <br />State to review and approve or disapprove any contracts for the <br />construction of the project or the performance of work pursuant <br />to such contracts or subcontracts. <br /> <br />4. 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. <br /> <br />5. Make the services of said project available within its <br />capacity to all persons in the Contractor's service area without <br />discrimination as to race, color, religion, or natural origin at <br />reasonable charges including assessments, taxes, or fees in <br />accordance with a schedule of such charges, whether for one or <br />more classes of service, formally adopted by the Contractor <br />through its board of directors, as may be modified from time to <br />time by the Contractor. The initial rate schedule must be <br />approved by the State. Thereafter, the Contractor may make such <br />modifications to the rate schedule as the Contractor deems <br />necessary to efficiently and economically provide for the <br />financial requirements of the system as long as the rate schedule <br />remains reasonable and non-discriminatory, and subject to the <br />approval by the State. <br /> <br />6. Adjust its operating costs and service charges from time <br />to time to provide for adequate operation and maintenance, <br />emergency repair services, obsolescence reserves, and debt <br />reserves. <br /> <br />7. Expand the system from time to time to meet reasonable <br />growth or service requirements in the area within its <br />jurisdIctIon. <br /> <br />8. Provide the State with such periodic reports as it may <br />require and permit periOdic inspections of its operations and <br />accounts by a designated representative of the State. The <br />Coiorado Water Conservation Board, its agents and employees, is <br />hereby designated as the agent of the State for the purpose of <br />this contract. <br /> <br />9. Purchase from the State all of the State's right, title, <br />and interest in said project and any facilities thereof at a <br />total purchase price of Two Hundred Ninety-Two Thousand Four <br />Hundred EIghty Dollars ($292,480) payable In Forty (40) annual <br />installments of Seven Thousand Three Hundred Twelve ($7,312) <br />each, which first installment shall be due and payable on June <br />1, 1983, and yearly thereafter until the entire principal sum <br />shall have been paid. Said installment payment shall be made <br />payable to the Colorado Water Conservation Board, payable at the <br />offices of said Board in Denver, Colorado. <br /> <br />B. Upon default In the payments herein set forth to be made by <br />the Contractor, or in the performance of any covenant or <br />agreement contained herein, the State, at its option, may (a) <br />declare the entire principal amount then outstanding immediately <br /> <br />Page 2 of 5 Pages <br />