Res 1983-068 - Laserfiche WebLink

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and shaìl be in all respects on a parity and of equal dignity with the Bonds, The right to issue Additional Bonds at any time is suhject to the following limitations, restrictions, and conditions: (a) The Additional Bonds are authorized and issued in conformity with the Constitu- tion and applicable Statutes of the State of Texas; (b) The City certifies that no default exists in connection with any of the covenants or requirements of the ordinance or ordinances authorizing the issuance of all then oustand- ing bonds payable from the net revenues of the System; (c) The City certifies that the Interest and Sinking Fund contains the amount then required to be on deposit therein; (d) The net revenues of the System for the fiscal year immediately preceding the issuance and sale of said Additional Bonds are equal to at least one and five-tenths (1.5) times the average annual debt service requirements of the then outstanding bonds, as certi- fied by a Certified Public Accountant; and (e) The annual net revenues of the System will be equal to at least one and five-tenths (1.5) times the average annual amount required for payment of principal of and interest on all outstanding revenue bonds, Certificates and the Additional Bonds then proposed to be issued, as such principal and interest are scheduled to become due, as certified to by an Independent Consulting Engineer, Provided, however, that it shall not be necessary for the City to meet the above re- quirements as to the average annual debt service requirements if the City obtains the written consent of the owners or holders of at least seventy-five per cent (75%) of the Outstanding Bonds, Certificates and Additional Bonds then outstanding. Section 19. RATES AND CHARGES. The City further covenants and agrees that, so long as any of the Outstanding Bonds, Certificates and Additional Bonds remain outstanding and unpaid, it shall fix and maintain rates and collect charges for the facilities and services afforded by the System which will produce income and revenues sufficient at all 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 Bonds, Certificates 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, Certificates or any Additional Bonds, as and when the same becomes due. Section 20. 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 and sewer system. The foregoing insurance shall be maintained so long as any of the Outstanding Bonds, Certificates, 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 in- surance proceeds for the repair or reconstruction of the damaged or destroyed portion thereof, (c) If such insurance is not a1rea~y in force, procure and maintain, so long as any of the Outstanding Bonds, Certificates, and Additional Bonds are outstanding, Public Lia- bility Insurance relating to the operation of the water and sewer facilities with limits of not less than $100,000 for one person 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 510,000 from claims for damage to property of others which may arise from the City's operations of the water and sewer system. -16-