<br />as Ehown in the reservoir and vicinity map, Appendix A.
<br />
<br />3. Permit periodic inspection of construction by the authori:,;;ed representa-
<br />tives of the State during construction and permit the State to review and approve
<br />or disapprove any contracts for the construction of tl1e project or the pQrfocmance
<br />of work pUrsuant to such contracts or subcontracts.
<br />
<br />4. Without expense to the State, manage, operate, and maintain the project
<br />liability for such management, operation and maintenance.
<br />
<br />5. Make the services of said project available wiLhin its capacity to all
<br />persons in the Contractor's service area without discrimination as to rape, color,
<br />religion, or natural origin .:It reasonable charges, including assessUlents, taxes,
<br />or fees in accordance with a schedule of such charges, whether for one or more
<br />classes of service, formillly adopted by the Contractor through its board of
<br />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
<br />make such modifications to the rate schedule as the contractor deems necessary
<br />to efficiently and economically provide for the financial requirements of the
<br />system as long as the rate schedule remains reasonable and non-discriminatory.
<br />
<br />6. Adjust its operating costs and service charges from time to time to
<br />provide far 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 reasonuble growth or service
<br />requirements in the area within its jurisdiction.
<br />
<br />8. Provide the State with such periodic reports as ~t may require and permit
<br />periOdic inspections of its operations and accounts by a designated representutive
<br />of the State. The Colorado Water Conservation Board, its agents, and employees,
<br />is hereby designated a$ 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, und interest
<br />in said project and any facilities thereof at a total purchase price of One
<br />Million Seventy-Three Thousand Eight lIundred Eighty-Si>' Dollilrs and 'l'wentY:"'l"our
<br />Cents ($1,073,886.24)payable in forty (40) annual installments of TwentY-Six
<br />'l'housand Eight Hundred porty-Seven Dollars and Sixteen Cents ($26,847.16) each,
<br />which first installment shall be due and payable on September I, 1982, and yearly
<br />thereafter until the entire principal sum shall have b~en paid. Said installment
<br />payment shall be made payable to the Colorado Water Co~servation 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 con~ained herein, the State,
<br />at its option, rnoy (a) declare the entire principal amOunt then outstanding
<br />immediately due and payable (b) for the acqount of the Contractor incur and pay
<br />roo-sonable expenses for repair, mainb!h!lt1ce; and operation of the wate!:" system
<br />herein described and such other reasonable expenses as may be necessary to cure
<br />the cause of default; and/or (c) take possession of the system, repair, maintain,
<br />and operate or lease it. The provisions of this contr8ct may be enforced by the
<br />State, at its option without regard to prior waivers by it of previous defaults
<br />by the Contractor, through judicial proceedings to req~ire specific performance
<br />of this cOntract or by such other proceedings in law ot equity as may be deemed ..,
<br />necessary by the State to insure compliance with provisions of this contract and
<br />f:ho laws and regulationS under which this contract is l1lade.
<br />
<br />B. The State agrees that it will:
<br />
<br />1. Make available to tr.,_~ Contractor for the purpose of this contract the
<br />sum of Six Hundred Twenty- Thousand Six Hundred Dollars ($620,600). Said Six
<br />Hundred Twenty Thousand Six Hundred Dollars ($620,600) shall be made nvail"l:"'Ilp.
<br />LV LillO: (;U!lt.lactor in accordance with the following terI1lS, schedule and conditions.
<br />
<br />(a) Beginning with the ~onthly periOd commencing September 15, 1980,
<br />and for every month thereafter until said project has been completed,
<br />the Contractor shall prepare with the consulting engineer's help, an
<br />estimate of the funds required from the State for project construction
<br />during that month and shall forward said estimates to the State not
<br />less than fifteen (15) days prior to the beginning of such month.
<br />
<br />(b) Upon receipt and aPProval by the State of such monthly estimate,
<br />the state will, within forty (40) days from the receipt of such
<br />estimate, pay over to the Contractor the amount of the monthly estimate
<br />or such portion thereof as has been approved by the State.
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