10-26-09 Common Council Meeting Agenda & Packet

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each year to produce net revenues, as defined in Section XI of this Ordinance, at least equal to 1.25 times the greater of the average annual debt service on the Prior Bonds, the Bonds and all bonds on a parity therewith or the debt service payable during the next succeeding twelve calendar months on the Prior Bonds, the Bonds and all bonds on a parity therewith. For these purposes, the interest rate on variable rate debt shall be assumed to be the average interest rate thereon in the preceding calendar year. Such rates or charges shall, if necessary, be changed and readjusted from time to time so that the revenues therefrom shall always be sufficient to meet the expenses of Operation and Maintenance of the Sewage Works and the requirements of the Sewage Works Sinking Fund. The rates or charges so established shall apply to any and all use of such Sewage Works by and service _ rendered to the City and all departments thereof and shall be paid no less frequently than semi-annually by the City or the various departments thereof as the charges accrue. Section 9. The section of the Bond Ordinance labeled Section XVII. Additional Covenants of the City shall be amended and restated as follows: Section XVII. Additional Covenants of the City. For the purpose of further safeguarding the interests of the owners of the Bonds herein authorized, it is spedifically provided as follows: ' (a) All contracts let by the City in connection with the construction of said additions and improvements to the Sewage Works shall be let after due advertisement as required by the laws of the State of Indiana, and all contractors shall be required to furnish surety bonds in an amount equal to one hundred percent (100%) of the amount of such contracts, to insure the completion of said contracts in accordance with their terms, and such contractors shall also be required to carry such employers liability and public liability insurance as are required under the laws of the State of Indiana in the case of public contracts, and shall be governed in all respects by the laws of the State of Indiana relating to public contracts. (b) Said additions and improvements shall be constructed under the supervision and subject to the approval of the Consulting Engineers or such other competent engineer as shall be designated by the Board. All estimates for work done or material furnished shall first be checked by the Consulting Engineers and approved by the Board. (c) The City shall at all times maintain its Sewage Works in good condition and operate the same in an efficient manner and at a reasonable cost. (d) So long as any of the Bonds herein authorized are outstanding, the City shall maintain insurance coverage (which must be acceptable to the . Authority if the Authority owns the Bonds), including fidelity bonds, to protect the -15- BDDBOl 586349vi