PROJ00292

• Contract/PO #: C153375
• Contractor Name: Canon City, City of
• Contract Type: Loan
• Water District: 12
• County: Fremont
• Bill Number: SB 81-439
• Loan Projects - Doc Type: Contract Documents

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
the operation of the project system.

8. Make the servi~es of said water system available within
its capacity to all perso~s in the Contractor's service area without
discrimination as to r~ce, color, religion or national 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 City
Council as may be modified from time to time by the Contractor.
The initial rate sched~le shall be approved by the State. There-
after, the Contractor may make such modifications to the rate
schedule as the Contr~ctor deems necessary to efficiently and
economically provide for the financial requirement~ of the system,
such modifications shall be approved by the State so long as said
rate schedule remains reasonable and non-discriminatory. The parties
hereto specifically r~cognize that Contractor's rate schedule
presently reflects different rate classifications based upon
Contractor's contractual obligations to certain water users as
well as classifications based upon types of use and the location
of users within and without Contractor's municipal boundaries.

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 r~serves.

10. 'Expand the water system from time to time, consistent with
the ordinances, rules and regulations of the Cit~ of Canon City,
to meet reasonable growth or service requirements in the area within
its jurisdiction.

11. Provide the state with such periodic r~ports as it may
require and permit periodic inspections of its operations and
accounts by a designated representative of the State.

12. Purchase from the State all of the Stat~'s right, title
and interest in the project facilities thereof at a total purchase
price of Four Hundred T~ousand Seven Hundred SixtY-One Dollars and
Ninety Cents ($400,761.901 payable in 30 annual installments of
Thirteen Thousand Three Hundred Fifty-Eight Dollars and Seventy-Three
Cents ($13,358.73) eaCh, which first installment shall be due and
payable on April I, 1984, and yearly thereafter Until the entire
principal sum shall hav~ been paid. Said installment payments shall
be made payable to the ~olorado Water Conservatio~ Board, payable
at the offices of said ~oard in Denver, Colorado.

13. Obtain and maintain general fire and haZard insurance on
the project facilities in an amount not less than the amount owing
to the State for purchase of the project facilities until the
Contractor has purchased the project facilities. The State shall
be named as a co-insured of this pOlicy. The purchase price payable
to the State shall be reduced in the amount of any payments made
to the State under this insurance coverage, if only a portion of
the purchase price is Paid to the State under this policy, the number
of installment payments shall remain unchanged, hOwever, the amount
of each payment shall b~;reduced.

14. Comply with Construction Fund Program Procedures attached
hereto as Schedule A.

15. Comply with the provisions of Section 5 of S.B. 439, 1981
Session of the Colorado General Assembly, except as specifically
modified insofar as the amount of monies provided and the term of
repayment provided in this ag~eement.

C. Upon default in the payments herein set forth to be made by
the Contractor, or in the performance of any covenant or agreement
contained herein, the State, at its option, may (a) declare the

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