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<br />17 <br />and expenses of the Enterprise and abides by such consultant’s recommendations to revise the <br />schedule of rates, fees and charges and to revise any Maintenance and Operation Costs of the <br />Enterprise insofar as practicable and to take such other actions as are necessary so as to <br />produce Net Revenues to cure such violation for future compliance; provided, however, that if <br />the City does not cure such violation within twelve (12) months succeeding the date such <br />violation is discovered, an Event of Default shall be deemed to have occurred under Section <br />7.01(b). <br /> <br />(d) The City shall furnish to the Trustee by each April 1 following the close of each of <br />its Fiscal Years, an audit report of an Independent Certified Public Accountant with respect to <br />the Fiscal Year, together with a certificate of the City certifying that the City has complied with its <br />rate covenant contained in subsections (a) and (b) above for the Fiscal Year. <br /> <br />Section 5.15. Operation of Enterprise; Collection of Rates and Charges. <br /> <br />The City will, so long as the Bonds are Outstanding, continue to operate the Enterprise <br />and shall have in effect at all times rules and regulations requiring all users of the Enterprise <br />provided by the City that is provided or made available to pay the rates, fees and charges <br />applicable to the Enterprise provided or made available to such users, and providing for the <br />billing thereof and for a due date and a delinquency date for each bill. In each case where such <br />bill remains unpaid in whole or in part after such bill becomes delinquent, the City, in <br />accordance with law, may refuse to provide or make available the services provided by the <br />Enterprise to such premises until all delinquent rates, fees and charges and penalties have <br />been paid in full. <br /> <br />Except in connection with the receipt of federal or State funding, or as required as a <br />condition to the acquisition or operation of the Project, the City will not permit any part of either <br />Enterprise, or any facility thereof, to be used, or taken advantage of, free of charge by any <br />person, firm or corporation, or by any public agency (including the United States of America, the <br />State of California and any public corporation, political subdivision, city, county, district or <br />agency, of any thereof), excepting only that the City may without charge use the services and <br />facilities of the Enterprise. <br /> <br />Section 5.16. Eminent Domain Proceeds. <br /> <br />If all or any part of the Enterprise shall be taken by eminent domain proceedings, the Net <br />Proceeds thereof shall be applied as follows: <br /> <br />(a) If (1) the City prepares a report showing (i) the estimated loss of annual <br />Net Revenues, if any, suffered or to be suffered by the City by reason of such eminent <br />domain proceedings, (ii) a general description of the additions, betterments, extensions <br />or improvements to the Enterprise proposed to be acquired by the City from any Net <br />Proceeds, and (iii) an estimate of the additional annual Net Revenues to be derived from <br />such additions, betterments, extensions or improvements, and (2) on the basis of such <br />certificate, the City determines that the estimated additional annual Net Revenues will <br />sufficiently offset the estimated loss of annual Net Revenues resulting from such <br />eminent domain proceedings so that the ability of the City to meet its obligations <br />hereunder will not be substantially impaired (which determination shall be final and <br />conclusive); then the City shall promptly proceed with the acquisition of such additions, <br />betterments, extensions or improvements substantially in accordance with such report <br />and such Net Proceeds shall be applied for the payment of the costs of such acquisition, <br />8.C. - Page 179