Res 1988-009 - Laserfiche WebLink

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Section 9.02. Investment Income. Interest and income derived from investment of the Interest and Sinking Fund shall be credited to such Fund. Section 10.01 Rates and CharRes. The City further covenants and agrees that, so long as any of the Outstanding Bonds, Bonds and Additional Bonds remain outstanding and unpaid, it shaH fix and maintain rates and coHect charges for the facilities and services afforded by the System which will produce income and revenues sufficient at a1l times: (a) To pay all reasonable and necessary costs of operation, repairs, maintenance and insurance of the System; (b) To provide for the payment of principal and interest on the Outstanding Bonds, Bonds and Additional Bonds and the required reserve therefor and maintain the Water and Sewer System Replacement and Repair Fund; (c) To pay in addition all outstanding indebtedness against the System other than the Outstanding Bonds, Bonds or any Additional Bonds, as and when the same becomes due. Section 10.02. Maintenance and Operation: Insurance. (a) The City hereby covenants and agrees to maintain the facilities of its water and sewer system in good condition and operate the same in an efficient manner and at a reasonable cost. (b) If the water and sewer system includes structures above ground level, the City shall, upon acceptance of the project from the Contractor, if such insurance is not already in force, procure Fire and Extended Coverage Insurance on the insurable portions of the water sewer system. The foregoing insurance shall be maintained so long as any of the Outstanding Bonds, Bonds, and Additional Bonds or Obligations are outstanding and shall be in amounts sufficient to provide for not less than full recovery whenever a loss from perils insured against does not exceed 8096 of the full insurable value of the damaged facility. Section 10.03. Rates and CharRes: No Free Service. The City further covenants and agrees that it will faithfully and punctually perform al1.duties with reference to the System required by the Constitution and laws of the State of Texas, including the making and collecting of reasonable and sufficient rates for water and sewer services suppHed by the System, and the segregating and appHcation of the revenues of the System as required by the provisions of this Ordinance. The City further covenants and agrees that no free service shall be allowed, and should the City or any of its agencies or instrumentalities make use of the services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of the funds from sources other than revenues and income of the System. Section 10.04. Records and Accounts. The City covenants that it will keep proper books, records and accounts, relating to the System in accordance with generally accepted accounting practices of faciHties of like type and size, in which complete and correct entries shall be made of all pertaining transactions. All such books, records and accounts shall at aJJ times during normal business hours be subject to the inspection of the Fiscal Agent, or of the holders of not less than 10 percent of the principal amount of the Outstanding Bonds, Bonds and/or Additional Bonds then qutstanding or to their authorized representatives. The City further covenants that on or before ninety (90) days after the close of each fiscal year, the City will furnish to the holder of any of the Outstanding Bonds, Bonds, and Additional Bonds who shall request same in writing, copies of an annual audit report prepared by an independent public accountant or a State auditing official, covering the operation of the preceding fiscal year. Section 10.05 Sale. Lease or Other Encumbrance of System. The City hereby covenants, binds and obligates itself not to mortgage or otherwise encumber the System or any part thereof, except as otherwise herein provided, or sell, lease or in any manner dispose of the System, or any part thereof, including any and aU extensions and additions that may be made thereto, until all Outstanding Bonds, Bonds and Additional Bonds shall have been paid in full as to both principal and interest (provided that this covenant shall not be construed to prevent the disposal by the City of property which in its judgment has become in expedient to use in coMection with the System when other property of equal value has been substituted therefor). -15-