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<br />b. A 5 MG settling pond with inlet structures; purchase of
<br />land is also included. .
<br />
<br />c. A 4,000-ft. l4-inch pipeline with all necessary fittings,
<br />'valves'and other appurtenances from the pumping station
<br />joining the existing line from the old pump station to the
<br />Graham Mesa Tank and Treatment Plant. .
<br />
<br />3. Permit periodic inspection of construction by the authorized
<br />representatives of the State during construction and pennit the
<br />State to review and approve or disapprove any contracts for the
<br />construction of the project or the performance of work pursuant
<br />to such contracts or subcontracts.
<br />
<br />4. Without expense to ,the State, manage, operate and maintain
<br />the project system Gontinuously in an efficient and economical
<br />manner, and assume all legal liability for .such management,
<br />~peration and maintenance. .
<br />
<br />5. Make the services of said project.avai1ab1e within its .
<br />capacity to all persons in the Contractor's service area without
<br />discrimination as to race, color, religion or natural origin at
<br />reasonable charges,. including assessments, taxes or fees in
<br />accordance with a schedule of such charges, whether for one or
<br />. more classes of service, formally. adopted by the' . Contractor
<br />through its board of directors, as may be modified from time to
<br />time by the Contractor. The initial rate schedule must be
<br />approved by the State. Thereafter, the Contractor may make such
<br />,modifications to the rate schedule as the Contractor deems
<br />necessary to efficiently and economically provide for the
<br />financial requirements of the system as long as the rate schedule
<br />remains reasonable and nori-discriminatory, and, subject to the
<br />approval by the State.
<br />
<br />6. 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 />7. Expand the system from time to time to meet reasonable growth
<br />or service requirements in the area within its ju~isdiction.
<br />
<br />8. Provide the State with such periodic reports as it may require
<br />and permit -periodic inspections of its operations and accounts
<br />.by a designated representative of the State. The Colorado Water
<br />.Conservation Board, its agents and' employees, is hereby designated
<br />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
<br />and interest in said project and any facilities thereof at a
<br />total purchase price of Six Hundred Twelve Thousand Two Hundred
<br />Forty Dollars (~612,240), payable in thirty (30) annual install-
<br />ments of Twenty Thousand Four Hundred Eight Dollars ($20,408)
<br />each, which first installment shall be due and payable on
<br />December 1, 1978~ .and yearly thereafter until the entire principal
<br />sum shall have been paid. Said installment payment shall be made
<br />payable to the Colorado Water Conservation Board, payable at the
<br />offices of said board in Denver, Colorado.
<br />
<br />10. Upon default in the payments herein set forth to be made by
<br />the Contractor, or in the performance of any covenant or agree-
<br />ment contained herein~ the State, at its option may (a) declare
<br />the entire 'principal amount then. outstanding immediately due and
<br />payable, (b) for the account of the Contractor incur and pay .
<br />reasonable expenses for repair, maintenance, and operation of the
<br />domestic water system herein described and such other reasonable
<br />expenses as may be necessary to cure the cause of default, and lor
<br />(c) take possession of the system, repair, maintain, and operate
<br />or lease it. The provisions of this contract may be enforced by
<br />the State, at its option without regard to prior waivers by it of
<br />
<br />Page 2 of 5 pages
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