Agda Pkt 2024.08.26 Regular Meeting

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20 (c) If the City violates the covenants set forth herein, such violation shall not, in and of itself, be a default under this Installment Purchase Contract and shall not give rise to a declaration of an Event of Default if the coverage calculated hereunder does not decrease below 1.00 times annual Debt Service on the Bonds, annual payments with respect to Parity Obligations, and Maintenance and Operation Costs of the Enterprise and, within 120 days after the date such violation is discovered, the City hires an Independent Municipal Finance Consultant to review the revenues and expenses of the Enterprise and abides by such consultant’s recommendations to revise the schedule of rates, fees and charges and to revise any Maintenance and Operation Costs of the Enterprise insofar as practicable and to take such other actions as are necessary so as to produce Net Revenues to cure such violation for future compliance; provided, however, that if the City does not cure such violation within twelve (12) months succeeding the date such violation is discovered, an Event of Default shall be deemed to have occurred under Section 7.01(b). (d) The City shall furnish to the Trustee by each April 1 following the close of each of its Fiscal Years, an audit report of an Independent Certified Public Accountant with respect to the Fiscal Year, together with a certificate of the City certifying that the City has complied with its rate covenant contained in subsections (a) and (b) above for the Fiscal Year. Section 5.15. Operation of Enterprise; Collection of Rates and Charges. The City will, so long as the Installment Payments are Outstanding, continue to operate the Enterprise and shall have in effect at all times rules and regulations requiring all users of the Enterprise provided by the City that is provided or made available to pay the rates, fees and charges applicable to the Enterprise provided or made available to such users, and providing for the billing thereof and for a due date and a delinquency date for each bill. In each case where such bill remains unpaid in whole or in part after such bill becomes delinquent, the City, in accordance with law, may refuse to provide or make available the services provided by the Enterprise to such premises until all delinquent rates, fees and charges and penalties have been paid in full. Except in connection with the receipt of federal or State funding, or as required as a condition to the acquisition or operation of the Project, the City will not permit any part of either Enterprise, or any facility thereof, to be used, or taken advantage of, free of charge by any person, firm or corporation, or by any public agency (including the United States of America, the State of California and any public corporation, political subdivision, city, county, district or agency, of any thereof), excepting only that the City may without charge use the services and facilities of the Enterprise. Section 5.16. Eminent Domain Proceeds. If all or any part of the Enterprise shall be taken by eminent domain proceedings, the Net Proceeds thereof shall be deposited in an Insurance and Condemnation Fund established and held by the City and applied as follows: (a) If the City has determined that it needs to use the Net Proceeds to make additions, betterments, extensions or improvements to the Enterprise in order for the City to comply with Section 5.07, the City shall use such Net Proceeds to make such additions, betterments, extensions or improvements. If such Net Proceeds shall exceed the costs of such additions, betterments, extensions or improvements that are required for the City to comply with Section 5.07, the excess shall be applied to any lawful purpose of the Enterprise, including (i) 8.A. - Page 188 of 255 816