Concerning Construction and the Installation of Extensions, Additions and Improvements to the Waterworks

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revenue so received shall be deemed to be revenue derived from the operation of the waterworks and shall- be used and. accounted for in the same manner as other revenues derived from the operation of the waterworks. The City covenants to the fullest extent permitted by law, and subject to the approval of Lhe Public Service Commission, that it will cause to be maintained at least TWO Thousand Seven Hundred Seventy -five (2,775) fire hydrants and will pay to its waterworks department an annual rental of not less -than Forty- -four Dollars ($44.00) per hydrant:, which the Council now finds is a reasonable and proper charge therefor. Upon completion of the construction of the work, said minimum number of hydrants shall be maintained, and said rental will be paid by the City to its waterworks department so long as any of the bonds herein authorized are outstanding. Section 13. For the purpose of further safeguarding the interests of the holders of the bonds, it is specifically provided as follows: (a) All construction contracts shall be let to responsible contractors who shall be required to furnish construction bonds running to the City of South Bend, in an amount equal to One Hundred per cent (100%) of the amount of such contracts, to insure the completion of such contracts in accordance with their terms, and such contractors shall be required to carry such employer's liability and public liability insurance as are -required under the laws of the State of Indiana in the case of public contracts. (b) The extensions and additions shall be contracted for and constructed to the approval of Clyde E. Williams & Associates, Inc., Consulting Engineers of South Bend, Indiana, now employed by the City, or suchh other consulting engineers as may hereafter be employed by the City. All estimates for work done and material furnished shall first be checked by the consulting engineers before being approved by the City. (c) The City shall, at all times, maintain said waterworks 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 on the insurable parts of the waterworks of a hind and in an amount such as is usually carried by private companies engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business in 'the State of Indiana., and any insurance proceeds collected shall. be used in replacing the property destroyed i -15