Res 2009-038 - Laserfiche WebLink

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provisions of this or any other contract or agreement between the Parties. This covenant shall be for the benefit of the bond holders of the respective Party and shall continue after expiration of this Agreement until all Project Debt Instruments issued under this Agreement are retired. Section 20. Pledge of Revenue. Pursuant to TEX. REV. Civ. STAT. ANN. ART. 8280-106 (Vernon 1954) and TEX. REV. CIV. STAT. ANN. ART. 1113 (Vernon 1963), GBRA and the City represent and covenant that all payments to be made under this Agreement shall constitute reasonable and necessary operating expenses of the Parties' San Marcos Regional Water Supply Project and that all such payments will be made from the Parties' revenues from the Plant and the Raw Water Delivery System. GBRA and the City represent and have determined that the water supply to be obtained from the Project is absolutely necessary and essential to the present and future operation of their water systems; therefore, and, accordingly, all payments required by this Agreement to be made by GBRA or the City shall constitute reasonable and necessary operating expenses of GBRA's and the City's system or systems as described above with the effect that the obligation to make such payments from revenues of such system or systems shall have priority over any obligation to make any payments from such revenues, whether of principal, interest, or otherwise, with respect to all Project Debt Instruments heretofore or hereafter issued by City or GBRA. GBRA and the City agree throughout the term of this Agreement to continuously operate and maintain their water systems and to fix and collect such rates and charges for water services to be supplied by their water systems as will produce revenues in an amount equal to at least (i) all of their payments under this Agreement and (ii) all other amounts as required by the provisions of the ordinances or resolutions authorizing its other revenue bonds or other obligations now or hereafter outstanding. Unless otherwise specifically provided in writing by subsequent agreement between City and GBRA, neither the City nor GBRA shall have the right to demand payment of any obligation assumed or imposed under this Agreement from funds raised or to be raised by taxation, it being expressly understood by City and GBRA that all payments due by GBRA or the City are to be made from the revenues and income received as a result of their respective interests in and operation of the San Marcos Regional Supply Project. Section 21. Payments for Raw Water. The City will pay GBRA for raw water pursuant to the terms of the City's Raw Water Contract, as such Contract may be amended from time to time. Section 22. Payments for Raw Water Delivery. Rates charged to the City to recover GBRA's cost of design, construction, maintenance and operation of the Raw Water Delivery System shall be set by GBRA in accordance with accepted rate-making practices and billed on a monthly basis. The rates charged to the City shall be sufficient for GBRA to recover the entire Raw Water Delivery System Annual Requirement; -14-