03231970 Regular Meeting - Laserfiche WebLink

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~ (3) To pay lnaddition all outstanding indebtedness against the System other than the Bonds, or any Additional Bonds, as and when the same becomes due. I Section XVIII, 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) Fire and Extended Coverage. If the water and sewer system includes structures above ground level, the City shall, upon accept- ance 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 fore- going insurance shall be maintained so long as any of the Bonds are outstanding and shall be in amounts sufficient to provide for not less than full recovery whenever a loss from perils insured against i II does not exceed 80% of the full insurable value of the damage~ I facility, In the event of any demage to or destruction of any part of said water and sewer system covered by such insurance, the City s~all promptly arrange for the application of t~e insurance proceeds for the repair or reconstruction of the damaged or destroyed portion thereof. (c) Liability Insurance on Facilities. Upon receipt of any funds acquired by loan or from the Bond proceed~;_or any part there- of, the City shall, if such insurance is not already in force, II procure and maintain, so long as any of the Bonds are outstanding, Public Liability 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 $10,000 from claims for damage to property of others which may arise from the City's operations of the water and sewer system. 18 -