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<br />facilities and services afforded by the System which will produce income and <br />revenues sufficient at all times: <br /> <br />(a) To pay all reasonable and necessary costs of operation. repairs. <br />maintenance and insurance of the System; <br /> <br />(b) To provide for the payment of principal and interest on the <br />Outstanding Bonds. Bonds and Additional Bonds and the required reserve therefor <br />and maintain the Water and Sewer System Replacement and Repair Fund; <br /> <br />(c) To pay in addition an outstanding indebtedness against the System <br />other than the Outstanding Bonds. Bonds or any Additional Bonds. as and when the <br />same becomes due. <br /> <br />Section 10.02. Maintenance and Operation: Insurance. (a) The City hereby <br />covenants and agrees to maintain the facilities of its water and sewer system in <br />good condition and operate the same in an efficient manner and at a reasonable cost. <br /> <br />(b) If the water and sewer system includes structures above ground level. the <br />City shall. upon acceptance of the project from the Contractor. if such insurance is <br />not already in force. procure Fire and Extended Coverage Insurance on the insurable <br />portions of the water sewer system. The foregoing insurance shall be maintained so <br />long as any of the Outstanding Bonds. Bonds. and Additional Bonds or Obligations are <br />outstanding and shall be in amounts sufficient to provide for not less than full <br />recovery whenever a loss from perils insured against does not exceed 80% of the full <br />insurable value of the damaged facility. <br /> <br />In the event of any damage to or destruction of any part of said water and <br />sewer system covered by such insurance. the City shall promptly arrange for the <br />application of the insurance proceeds for the repair or reconstruction of the <br />damaged or destroyed portion thereof. <br /> <br />(c) If such insurance is not already in force. procure and maintain. so long as <br />any of the Outstanding Bonds. Bonds. and Additional Bonds are outstanding. Public <br />Liablity Insurance relating to the operation of the water and sewer facilities with <br />limits of not less than $100.000 for one and $300.000 for more than one person <br />involved in one accident to protect the City from claims for bodily injury and/or <br />death; and not less than $10.000 from claims for damage to property of others which <br />may arise from the City's operations of the water and sewer system. <br /> <br />(d) If the City owns or operates a vehicle in the operation of the water and <br />sewer system. including any non-owned vehicles operated for the benefit of the <br />City. the City shall. if such insurance is not already in force. procure and maintain <br />such insurance. so long as any of the Outstanding Bonds. Bonds. or Additional Bonds <br />are outstanding. Vehicular Public Liability Insurance with limits of not less than <br />$100.000 for one person involved in one accident to protect the City from claims for <br />bodily injury and/or death. and not less than $10.000 against claims for damage to <br />property of others which may arise from the City's operation of vehicles. <br /> <br />2906f <br /> <br />-24- <br />