9523-04 Authorizing the Acquistion, COnstuction and, Installation of Certain Additions

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previous fiscal year's operations would have produced net revenues for said year equal to not less than one hundred twenty-five percent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and the additional parity bonds proposed to be issued. For purposes of this subsection, the records of the Sewage Works shall be analyzed and all showings shall be prepared by a certified public accountant or independent financial advisor employed by the City for that purpose. (d.) The principal of the additional parity bonds shall be payable annually on December 1 and the interest shall be payable semiannually on June 1 and December 1 during the periods in which principal and interest are payable. SECTION 18. Additional Covenants of the City. For the purpose of further safeguarding the interests of the holders of the 2004 Bonds, it is specifically provided as follows: (a.) All contracts let by the City in connection with the construction of said additions and improvement to the Sewage Works in connection with the Project 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.) All additions and improvement to the Sewage Works in connection with the Project shall be constructed under the supervision and subject to the approval of the 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 Engineers or such other competent engineer as shall be designated by the Board 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 2004 Bonds are outstanding, the City shall maintain insurance on the insurable parts of the Works of a kind and in an amount such as would normally be carried by private companies engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business under the laws of the State of Indiana. In addition to or in lieu of the foregoing, the City may provide for coverage on all or part of the Works comparable to that described above through aself-insurance program. Insurance proceeds shall be used in replacing or repairing the property destroyed or damaged; or if not used for that purpose shall be treated and applied as Net Revenues of the Works. (e.) So long as any of the 2004 Bonds are outstanding, the City shall not mortgage, pledge or otherwise encumber such Works, or any part thereof, nor shall it sell, lease or otherwise dispose of any portion thereof except replaced equipment which may -16-