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<br />2. It is hereby mutually agreed that no money will become <br />available to Winter Park Water and Sanitation District until an agree- <br />ment has been reached between the Denver Water Board and the District <br />and such agreement has been approved by the Colorado Water Conservation <br />Board. <br /> <br />3. Conveyor cause title to be conveyed by deed or other proper <br />conveyance to the Colorado Water Conservation Board, Department of <br />Natural Resources, State of Colorado, the following portions of the <br />proposed project facilities: <br /> <br />a. A 100 gpm treatment plant located above the Denver Water <br />Board flume and adjacent to a ski trail known as "Turnpike.1I <br />Also, a building shell to include above treatment plant with <br />space for two additional 100 gpm treatment plants. <br /> <br />b. One 300,000 gallon storage tank located beneath the <br />treatment plant as described in a. <br /> <br />c. A diversion structure on the Fraser River located <br />approximately 1,000 feet above waste water treatment facility of <br />Winter Park Water and Sanitation District. <br /> <br />d. A 6-inch diameter 4,132 foot line with all appurtenances <br />connecting the diversion structure in c. with treatment plant in <br />a. <br /> <br />e. A 10-inch diameter 5,430 foot distribution line with all <br />appurtenances connecting the storage tank in b. with the remaining <br />distribution system. <br /> <br />4. Permit periodic inspection of construction by the authorized <br />representatives of the State during construction and permit the State <br />to review and approve or disapprove any contracts for the construction <br />of the project or the performance of work pursuant to such contracts <br />or subcontracts. <br /> <br />5. Without expense to the State, manage, operate, and maintain <br />the project system continuously in an efficient and economical manner, <br />and assume all legal liability for such management, operation, and <br />maintenance. <br /> <br />6. Make the services of said project available within its capacity <br />to all persons in the Contractor's service area without discrimination <br />as to race, color, religion, or natural origin at reasonable charges, <br />including assessments, taxes, or fees in accordance with a schedule <br />of such charges, whether for one or more classes of service, formally <br />adopted by the Contractor through its board of directors, as may be <br />modified from time to time by the Contractor. The initial rate <br />schedule must be approved by the State. Thereafter, the Contractor <br />may make such modifications to the rate schedule as the Contractor <br />deems necessary to efficiently and economically provide for the finan- <br />cial requirements of the system as long as ,'the rate schedule remains <br />reasonable and non-discriminatory, and subject to the approval by the <br />State. <br /> <br />7. Adjust its operating costs and service charges from time to <br />time to provide for adequate operation and maintenance, emergency <br />repair services, obsolescence reserves, debt service, and debt <br />reserves. <br /> <br />8. Expand the system from time'to time to meet reasonable growth <br />or service requirements in the area within its j~risdiction. <br /> <br />9. Provide the State with such periodic reports as it may require <br />and permit periodic inspections of its operations and accounts by a <br />designated representative of the State. The Colorado Water Conservation <br />Board, its agents, and employees, is hereby designated as the agent <br />of the State for the purposes of this contract. <br /> <br />Page 2 of 6 <br />