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Show pm Hjunxn ootiaok ii JUi NOTICES LEGAL rinri nf i i for the purpose of restoring or replacing ths property lost or damaged, and any remainder shall ba treated aa net income and revenues, and shall be subject to distribution in the manner provided hereinabove in Section 12 of this ordinance for net revenues derived from the operation of the system. account created by the varioua ordinance and other proceeding authorising the issuance of outstanding bonds and other obligations payable froa the revenues of the system, into which fund are put aoneys derived froa the operation of the system or derived froa the sale of the securities, be used such analysis to show the bslance in such fund of the bonds hersby authorised are outstanding, the City shall not grant any franchlaa or llcanac to a competing system, nor shall it permit, during said period any person, association, firm or corporation to sell else trie light or power service or facilities, water at the beginning of the fiscal year, the deposits and withdrawals during said year, and the balance at the end of said year. number of water connections and of sewer connections at the beginning and at the end of the year, and a similar report regarding the 6. The furnishing of electricity. The number of custoaers per class of 7. customers, if there be classes of custoaers, and revenues per class of custoaers. All expenses incurred in the asking of the audits and reports required by this section shall be regarded and paid as a maintenance and operation expense. The City agrees to furnish forthwith a copy of each of such audits and reports to the holder of any of the bonds at his request, and without request to Klrchner, Orasbee & Wlesner, Inc,, of Denver, Colorado, the original purchasers of $600,000.00 of the bonds hereby authorised, after each such audit and report has been prepared, and that any such holder shall have the right to discuss with the accountant or persons making the audit and report the contents thereof and to ask for such additional information as he nay reasonably require , G. That all bills for service or facilities fur- nished or served by or through the system shall be rendered to customers on a regularly established day of each and evt-rmonth next succeeding 'the month in which the service was rendered and shall be due within twenty days from the d.'. tendered; and in the event Bald bills are not paid within forty days after the date when rendered, water and wa.er service shall be discontinued, and the rates and charges due shall be collected in a lawful manner, including but not limited to the cost of disconnection and reconnection. Electric and newer charges shall be billed Jointly with charges for water and water facilities; and each bill shall separately ahow electric, water and sewer charges. H. That from the revenues of the system the City will pay all taxes and assessments or other municipal or governmental charges. If any, lawfully levied, assessed upon or in respect of said system, or any part thereof, when the same shall become due, and it will duly observe and comply with all valid requirements of any municipal or governmental authority relative to any part of said system, that it will not create or suffer to be created any lien or charge upon said system or upon the revenues therefrom except as permitted by this ordinance, or that it will make adequate provision to satisfy and discharge within sixty days after the same shall accrue all lawful claims and demands for labor, materials, supplies or other objects, which, if unpaid, might by law become a lien upon said system or upon the revenues therefrom; provided, however, that nothing herein shall require the City to pay or cause to be discharged, or make provision for any such tax assessment, lien or charge before the time when payment thereof shall be due or so long as the validity thereof shall be contested In good faith by appropriate legal proceedings . I. That the City in Its operation of the system will carry fire and extended coverage insurance, workmen's compensation insurance and public liability insurance and other types of Insurance in such amounts and to such extent as is normally carried by private corporations operating public utilities of the same type. The cost of such insurance shall be considered one of the operating costs nf In the event of loss or damage, Insurance the system. proceeds (except from any public liability policy) shall first J. That aa long as any or water service or facilities, or sewer service or facilities, or any combination thereof, to any consumer, public or privets . That the City will not sell, lease, mortgage, pledge, or otherwise encumber, or in any mannar dispose of, or otherwise alienate, the system, or any part tharoof, including any and all axtenaions and additions that say ba made thereto, until all the bonds herein authorised to bo issued shall have been paid in full, both principal and inK. nay sell any portion of said property which stall have been replaced by other property of at least equal value, or which shall caase to bo terest, except that the City necessary for ths efficient operation of the aysten, but in no manner nor to such extent as might prejudice the security for the payment of the bonds herein authorised, provided, however, that in ths event of any sals as afort said, the proceeds of such sals shall be distributed aa net income or revenues of the system in accordance with the provisions of Section 12 of this ordinance That the City shall enploy experienced and L. competent management personnel for each component of the system. In the event of defauit on the part of the City in paying principal of or interest on said bonds promptly as each falls due, or in the keeping of any covenants herein contained, and if such default shall continue for a period of sixty days, or if the net revenues of the system in any fiscal year should fall to equal at least the amount of the principal of and interest on the revenue bonds and other obligations (Including all reserves therefor specified in the authorising proceedings, including but not limited to this ordinance) payable from said net revenues in that fiscal year, the City shall retain a firm of competent management engineers skilled in the operation of electric, water end sewer systems to assist la the management of the system so long aa such default continues or the net revenues ere lees than the amount hereinabove designated j I ! -- ( i ! That each municipal official or other person having custody of any funds derived from operation of the system, or responsible for their handling, shall bo bonded in an amount at least equal to the total funds in hie The cost of each such bond shall custody at any one time. be considered one of the operating coat of the system. M. That each of the following oventa la hereby declared an "event of default," that is to sayt A. Payment of the principal of any of the bonds herein authorised to be Issued shall not bs mads When the seme shell become due and payable j ! j . ! j I Section 18. of any installment of interest shall not be made when the seme becomes due and payable or within B. Payment thirty days thereafter. The City shall for any reason be rendered inC. capable of fulfilling Its obligations hereunder. The City shall make default in the due and D. punctual performanct of its covenants or conditions, agree- sent and provisions contained in the bonds or in this ordinance on its part to be performed, end if such default shall continue for sixty days after written notice specifying such default and requiring the same to be remedied shall have been given to the City' by the holders of twenty- five per centum in principal emrunt of the bonds then out- - j I ! ! ! i j I j standing. i |
