Res 1983-068 - Laserfiche WebLink

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~ 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, so long as any of the Outstanding Bonds, Certificates or Additional Bonds are outstanding, Vehicular Public Liability InsJrance \.¡ith limits of not less than 5100,000 for one person and 5300,000 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 against claims for damage to property of others which may arise from the City's operations 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 21, RAT:S 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 funds from sources other than revenues and income of the System. Section 22, RECORDS AND ACCOUNTS. The City covenants that it will keep proper books, records and accounts, relating to the System in accordance with generally accepted account- ing practices of facilities 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 all 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, Certificates and/or Additional Bonds then outstanding or to their authorized rep- resentatives. 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, Certificates and Additional Bonds who shall request same in writing, copies of an annual audit report prepared by an independent public account or a State auditing offi- cial, covering the operation of the preceding fiscal year. Said annual audit report will reflect in reasonable detail the financial condition and record of operation of the City and the System, including, but not limited to, the following information: (a) An evaluation of the manner in which the City has complied with the covenants of the Ordinances authorizing the Oustanding Bonds, the Certificates and any Additional Bonds. (b) Statement of operating income and expense. (c) Statement showing analysis of each fund including deposits, withdrawals and beginning and ending balances. (d) General balance sheet. (e) A statement showing the schedule of rates charged for each class of service as of the close of the fiscal year, the gross revenues received and the number of connections. (f) Schedule of insurance policies and fidelity bonds in force showing with respect to each policy and bond the nature and amount of risk covered, the expiration date and the name of the insurer, (g) Names and titles of principal officers. (h) A general statement concerning any events or circumstances which might possibly affect the financial status of the project. Expenses in making the audits above required are to be regarded as maintenance and operation expenses of the System and paid as such. Section 23. 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 all extensions and additions that may be made there- to, until all Outstanding Bonds, Certificates 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 inexpedient to use in connection with the System when other property of equal value has been substituted therefor). -17-