Agmt08 South Bayside System Authority AKA Silicon Valley Clean Water

Browse Search

any component of the Sewer Utility System, commercial frustration of purpose, any change in the tax or law other laws of the United States of America or the State of California or any political subdivision of either thereof or any failure of the Authority to perform and observe any agreement, whether express or implied, or any duty, liability or obligation arising out of or connected with the Indenture or this Agreement. Section 6. Rates and Charges. (a) Gross Revenue Covenant. The City shall fix, prescribe, revise and collect rates, fees and charges for the services and facilities furnished by the Sewer Utility System during each Fiscal Year, which are at least sufficient, after making allowances for contingencies and error in the estimates, to yield Gross Revenues sufficient to pay all obligations of the City which are charges, liens, encumbrances upon, or which are otherwise payable from, the Gross Revenues in such Fiscal Year, including all SBSA Bond Payments and payments of principal of and interest on Parity Debt. (b) Net Revenue Covenant. In addition, the City shall fix, prescribe, revise and collect rates, fees and charges for the services and facilities furnished by the Sewer Utility System during each Fiscal Year which are sufficient to yield Net Revenues at least equalto 120% ofthe SBSA Bond Payments and payments ofprincipal ofand interest on Panty Debt coming due in such Fiscal Year. The amount of the Unencumbered Fund Balance as of the last day of the immediately preceding Fiscal Year shall be credited towards the City's obligations under this subsection (b), ¡n an amount not to exceed 20% of the SBSA Bond Payments and payments of principal of and interest on Parity Debt referred to in the preceding sentence. Section 7. No Senior Lien Debt. So long as the SBSA Bond Payments remain unpaid, the City shall not issue or incur any additional bonds or other obligations which are senior to the SBSA Bond Payments. Section 8. Issuance of Parity Debt. The City may issue Parity Debt which is payable from and secured by a pledge of and lien on the Net Revenues on a parity with the SBSA Bond Payments, upon satisfaction of the following conditions: (a) The City is not then in default in the payment of the SBSA Bond Payments and in the payment of principal of and interest on any Parity Debt. (b) The amount of Net Revenues, calculated in accordance with sound accounting principles, as shown by the books of the City for the latest Fiscal Year for which audited financial statements are available, or as shown by the books of the City for any more recent 12-month period selected by the City, are at least equal to 120% of the amount of Maximum Annual Debt Service. For purposes of determining the amount of Net Revenues under this subsection, the following shall apply: (i) the amount of Net Revenues may be increased to reflect any increase in the rates and charges levied for service from the Sewer Utility System which has been adopted prior to the date the Parity Debt is issued, in an amount by which the Net Revenues would have been increased if such increase in -4-