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Section 10.02. Maintenance and Operation; Insurance. <br />The City shall maintain the System in good condition and operate the same in an efficient <br />manner and at reasonable cost. So long as any Parity Revenue Obligations are outstanding, the <br />City agrees to maintain insurance for the benefit of the holder or holders of the obligations on the <br />System of a kind and in an amount which usually would be carried by private companies <br />engaged in a similar type of business. Nothing in this ordinance shall be construed as requiring <br />the City to expend any funds which are derived from sources other than the operation of the <br />System, but nothing herein shall be construed as preventing the City from doing so. <br />Section 10.03. Records; Accounts; Accounting Reports. <br />The City hereby covenants and agrees that so long as any Parity Revenue Obligations, or <br />any interest thereon, remain outstanding and unpaid, it will keep and maintain a proper and <br />complete system of records and accounts pertaining to the operation of the System, separate and <br />apart from all other records and accounts, in which complete and correct entries shall be made of <br />all transactions relating thereto, as provided by Tex. Gov't Code Ann. ch. 1502, as amended, and <br />that the owner or owners of any of said Parity Revenue Obligations or any duly authorized agent <br />or agents of such owners shall have the right at all reasonable times to inspect all such records, <br />accounts and data relating thereto, and to inspect the System and all properties comprising same. <br />The City further agrees that within 90 days following the close of each fiscal year, it will cause <br />an audit of such books and accounts to be made in accordance with generally accepted <br />accounting principles by an independent firm of Certified Public Accountants or Licensed Public <br />Accountants. Each such audit, in addition to whatever other matters may be thought proper by <br />the Accountant, shall particularly include the following: <br />year. <br />(a) A detailed statement of the income and expenditures of the System for such fiscal <br />(b) A balance sheet as of the end of such fiscal year. <br />(c) The Accountant's comments regarding the manner in which the City has carried <br />out the requirements of this ordinance and his recommendations for any changes or <br />improvements in the operation, records and accounts of the System. <br />(d) A list of the insurance policies in force at the end of the fiscal year on the System <br />properties, setting out as to each policy the amount thereof, the risk covered, the name of the <br />insurer, and the policy's expiration date. <br />(e) A list of the securities which have been on deposit as security for the money in the <br />Interest and Sinking Fund throughout the fiscal year, a list of the securities, if any, in which the <br />SANMARCOS/W W W SRev2017A: Ordinance 32 <br />