HomeMy WebLinkAbout0095_88damv:ge made within ninety (90) days after the date of 'loss. The
payment of premiums for all insurance policies required under the
provisions hereof shall be considered as maintenance and operation
expense.
SECTION 17. Records and Accounts. The City hereby covenants
and agrees that so long as� any Parity Bonds, or any interest thereon,
remain outstanding and unpaid, it will keep and maintain a proper and
complete system of records and accounts pertaining* to the operation
of the Utility System, separate and apart from all other records and
accounts, in which complete and correct entries shall be made of all
transactions relating to said System as provided in Article 1113,
Itevised Civil Statutes of Texas, 1925, as amended, and that the
holder or holders of any of the Parity Bonds, or any duly authorized
agent or agents of such holders, shall have the right at all reason-
able times to inspect all such records, accounts, and data relating
thereto, and to inspect the System and all properties comprising same.
The City further agrees that within sixty (60) days following the
close of each fiscal year, it will cause an aduit of such books and
accounts to be made by an independent firm of Certified Public
Accountants, showing the receipts and disbursements for account of the
Utility System for the fiscal year, and each such audit, in addition
to whatever other matters may be thought proper by the Accountant,
shall particularly include the following:
(a) A detailed statement of the income and expenditures for
account of the Utility System for such fiscal year.
(b) A balance sheet as of the end of such fiscal year.
(c) The Accountant's comments regarding the manner in which the
City has carried out the requirements of this ordinance and his recom-
mendations for any changes or improvements in the operation, records
and accounts of the Utility System.
(d) A list of the insurance policies in force at the end of ,the
fiscal year on the Utility System properties, setting out as to each
policy the amount thereof, the risk covered, the name of the insurer,
and the policy's expiration date.
(e) A list of the securities which have been on deposit as
security for the money in the Bond Fund, the Reserve Fund, and the
Contingency Fund, throughout the fiscal year; a list of the securities,
if any, in which the Reserve Fund and the Contingency Fund have
been invested, and a statement of the manner in which money in the
Utility System Revenue Fund has been secured in such fiscal year.
(f) The number of metered and unmetered customers connected
with the various departments of the Utility System, showing totals
as of the end of the year.
Expenses incurred in making the audits above required are to be
paid as maintenance and operation expenses.
The City further agrees to promptly furnish a copy of each such
audit to FIRST SUUTJRVLST COMPANY, DALLAS, TLXAS, and to any holder
of any of the Bonds who shall request same in writing, and that the
holder of any of the Bonds shall have the right to discuss with the
accountant making the audit the contents of the audit and to ask for
such additional information as he may reasonably request.
SUCTION 18. Sale, Lease or other Encumbrance of System. The
City hereby covenants, binds and obligates itself not to sell, lease
or in any manner dispose of the Utility System, or any part thereof,
including any and all extensions and additions that may be made
thereto, until all 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
Utility System when other property of equal value has been substituted
therefor).
SECTION 19. No Competing System. That so far as it legally may,
the City covenants and agrees, for the protection and security