Ord 1988-018 - Laserfiche WebLink

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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 80% of the full insurable value of the damaged facility. In the event of any damage to or destruction of any part of said water and sewer system covered by such insurance, the City shall promptly arrange for the application of the insurance proceeds for the repair or reconstruction of the damaged or destroyed portion thereof. (c) If such insurance is not already in force, procure and maintain, so long as any of the Outstanding Bonds, Bonds, and Additional Bonds are outstanding, Public Liablity Insurance relating to the operation of the water and sewer facilities with limits of not less than $100,000 for one and $300,000 for more than one person involved in one accident to protect the City from claims for bodily injury and/or death; and not less than $10,000 from claims for damage to property of others which may arise from the City's operations of the water and sewer system. (d) If the City owns or operates a vehicle in the operation of the water and sewer system, including any non-owned vehicles operated for the benefit of the City, the City shall, if such insurance is not already in force, procure and maintain such insurance, so long as any of the Outstanding Bonds, Bonds, or Additional Bonds are outstanding. Vehicular Public Liability Insurance with limits of not less than $100,000 for one person involved in one accident to protect the City from claims for bodily injury and/or death, and not less than $10,000 against claims for damage to property of others which may arise from the City's operation of vehicles. (e) The payment of premiums for all insurance policies required under the provisions hereof shall be considered as maintenance and operation expenses. Section 10.03. Rates and Charges: No Free Service. The City further covenants and agrees that it will faithfully and punctually perform all 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 supplied by the System, and the segregating and application 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. 2387f -24-