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<br />system continuously in an efficient and economical manner and assume all
<br />legal liability for such management, operation and maintenance.
<br />
<br />5. Make the services of said project available within its capacity to
<br />a~l persons in the contractor1s service area without discrimination as to
<br />race, calor, religion, or natural origin at reasonable charges, including
<br />assessments, taxes, Or fees in accordance with a schedule of such charges,
<br />whether for one or more classes of service, formally adopted by the Contractor
<br />through its board of directors, as may be modified from time to time by the
<br />Contractor. The initial rate schedule must be approve6 by the State. .There-
<br />after, the Contractor may make such modifications to the rate schedule las the
<br />Contractor deems necessary to efficiently and economically provide for the
<br />financial requirements of the system as long as the rate schedule remains
<br />reasonable and non-discriminatory and 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 repairs services,
<br />obsolescence reserves, debt service, and debt reserves.
<br />
<br />7. Expand the system from time to time to meet reasonable growth Or
<br />service requirements in the area within its jurisdiction.
<br />
<br />8. Provide the State with such periodic reports as it may require and
<br />permit periOdic inspections of its operations and accounts by a designated
<br />representative of the State. The Colorado Water Conservation Board, its
<br />agents, and employees, is hereby designated as the agent of the State for
<br />the purposes of this contract.
<br />
<br />9. To purchase from the State all of the State's right, title, and
<br />interest in said project and any facilities thereof at a total purchase
<br />price of One Million One Hundred ~entY-Nine Thousand Nine Hundred Fifty-
<br />One DOllars and Twenty Cents ($1,129,951.20) payable in forty (40) annual
<br />installments of Twenty-Eight Thousand Two Hundred Forty-Eight DollarS and
<br />SeventY-Eight Cents ($28,248.78) each, which first installment shall be due
<br />and payable on August 1, 1982, and yearly thereafter until the entire
<br />principal sum shall have been paid. Said installment payment shall be made
<br />payable to the Colorado Water ConServation Board,pay~ble at the offices of
<br />said Board in Denver, Colorado.
<br />
<br />10. Upon default in the payments herein set forth to be made by the
<br />Contractor, or in the performance of any covenant or agreement contained
<br />herein, the State, at its option, may (a) declare the entire principal amount
<br />then outstanding immediately due and payable (b) for the account of the Con-
<br />tractor incur and pay reasonable expenses for repair, maintenance, and
<br />operation of the water system herein described and s~ch other reasonable
<br />expenses as may be necessary to cure the cause of default; and/or (c) take
<br />possession of the system, repair,"maintain, and oper~te or lease it. The
<br />provisions of this contract may be enforced by the State, at its option
<br />without regard to prior waivers by it of previous defaults by the Contractor,
<br />through judicial proceedings to require specific performance of this contract
<br />or by such other proceedings in law or equity as may be deemed necessary by
<br />the State to insure compliance with provisions of this contract and the laws
<br />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
<br />sum of Six Hundred Fifty-Three Thousand Dollars ($653,000). Said Six Hundred
<br />Fifty-Three Thousand Dollars ($653,000) shall be made available to the Contractor
<br />in accordance with the following terms, schedule and conditions.
<br />
<br />(QI B~gi"ning with the rncnthly peried co~~encin~ S~ptemb~r 1: 19BO~ and
<br />for every month thereafter until said project bas been completed, the
<br />Contractor shall prepare with the consulting engineer's help, an estimate
<br />of the funds required from the State for project construction during that
<br />month and shall forward said estimates to the State not less than fifteen
<br />(15) days prior to the beginning of such month.
<br />
<br />(b) Upon receipt and approval by the State of such monthly estimate, the
<br />State will, within forty (40) days from the receipt of such estimate, pay
<br />over to the Contractor the amount of the monthlY estimate or such portion
<br />the~eof as has been approved by the State.
<br />
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