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<br />liability for such management, operation and maintenance.
<br />
<br />5. Make the services of said project available within its capacity to all
<br />persons in the Contractor's service area without discrimination as to race,
<br />color, religion, or natural origin at reasonable charges, including assessments,
<br />taxes, or fees in accordance with a schedule of such charges, whether for one
<br />or more classes of service formally adopted by the Contractor through its board
<br />of directors, as may be modified from time to time by the Contractor. The initial
<br />rate schedule must be approved by the State. Thereafter, the Contractor may make
<br />such modifications to the rate schedule as the Contractor deems necessary to
<br />efficiently and economically provide for the financial requirements of the system
<br />as long as the rate schedule remains reasonable and non-discriminat~ry, and
<br />subject to the approval by the State.
<br />
<br />6. Adjust its operating costs and service charges from time to time to
<br />provide for adequate operation and maintenance, emergency repair services,
<br />obsolescence reserves, debt service, and debt reserves.
<br />
<br />7. Expand the system from time to time to meet reasonable growth or service
<br />requirements in the area within its jurisdiction.
<br />
<br />8. Provide the State with such periodic reports as it may require and permit
<br />periodic inspections of its operations and accounts by a designated representative
<br />of the State. The ColoradO Water Conservation Board, its agents, and employees,
<br />is hereby designated as the agent of the" State for the purposes of this contract.
<br />
<br />9. To purchase from the state all of the State's right, title, and interest
<br />in said project and any facilities thereof at a total purchase price of Two
<br />Million Twenty Thousand Eight Hundred Dollars ($2,020,800) payable in forty (40)
<br />annual installments of Fifty Thousand Five Hundred Twenty Dollars ($50,520) each,
<br />which first installment shall be due and payable on August 1, 1982, and yearly
<br />thereafter until the entire principal sum shall have been paid. Said installment
<br />payment shall be made payable to the Colorado Water Conservation Board, payable
<br />at the offices of said Board in Denver, Colorado.
<br />
<br />10. Upon default in the payments herein set forth to be made by the Contractor,
<br />or in the performance of any covenant or agreement contained herein, the State,
<br />at its option, may (a) declare the entire principal amount then outstanding imme-
<br />diately due and payable (b) for the account of the Contractor incur and pay
<br />reasonable expenses for repair, maintenance, and operation of the domestic water
<br />system herein described and such other reasonable expenses as"may be necessary to
<br />cure the cause of default; and/or' (c) take possession of the system, repair,
<br />maintain, and operate or lease it. The provisions of this contract may be enforced
<br />by the State, at its option without regard to prior waivers by it of previous
<br />defaults by the Contractor, through judicial proceedings to require specific
<br />performance of this contract or by such other proceedings in law or equity as may
<br />be deemed necessary by the State to insure compliance with provisions of this contract
<br />and the laws and regulations under which this cOntract is made.
<br />
<br />B. The State agrees that it will:
<br />
<br />1. Make available to the COntractor for the purpose of 'this contract the sum
<br />of Nine Hundred Eighty-Five Thousand'Dollars ($985,000). Said Nine Hundred Eighty-
<br />Five Thousand Dollars ($985,000) shall be made available to the Contractor in accord-
<br />ance with the following terms, schedule and conditions.
<br />
<br />(a) Beginning with the monthly period commencing September 15, 1980, and
<br />for every month thereafter until said project has been completed,
<br />the Contractor shall prepare with the consulting engineer's help,
<br />an estimate of the funds required from the State for project contruc-
<br />ti~n curing that mQ~th and shall forward said estimates to the State
<br />not less than fifteen (15) days prior to the beginning of such month.
<br />
<br />(b) Upon receipt and approval by the State of s~ch monthly estimate, the
<br />State will, within forty (40) days from the receipt of such estimate,
<br />pay over to the Contractor the amount of the monthly estimate or such
<br />portion thereof as has been approved by the State.
<br />
<br />2. Assist the Contractor with such technical assistance as the State deems
<br />appropriate in planning, constructing, and operating the project and in coordinating
<br />the project with local official comprehensive plans for sewer and water and with any
<br />state or area plans for the area in which the project is located.
<br />
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