1987-11-09 Regular Meeting - Laserfiche WebLink

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e e ~- Section 3.06 In case of any deficiency in such special con- struction fund to payor provide for the timely payment of the costs of acquisition and construction of the Authority's share of the Southeast Plant, the Transmiss ion System and the Distribution System, the Authori ty shall proceed in the manner provided above to issue, sell and deliver such further or additional series of its Bonds, as may be necessary to prov ide funds for such purpose, and the Ci ty agrees to ass is t and cooperate with the Authority in whatever means reasonably possible to expedite such issuance and sale of additional Bonds and to avoid delays in construction or defaults of construction payments. Any surplus funds on hand in such special construction fund, after payment of all costs of acquisition or construction of the Authority's share of the Southeast Plant, the Transmiss ion System and the Distribution System, and all expenses of issuing such bonds, and after funding all reserve, escrow, sink ing or other funds requ ired by the Bond Resolu t ions ( s) to be so funded, shall be transferred to and deposited in the debt serVlce fund or sinking fund created by the Bond Resolution to provide for the payment of the principal of, and interest on, such 30nds. ARTICLE IV Operation of the Southeast Plant; Sale and Delivery of Water Section 4.01 The City recogn i zes tha t, pursuant to the terms of the Houston Contract, the Authority is not entitled to operate the Southeast Plant, but rather is a customer and equitable owner of a portion of said plant. The Authority shall be responsible for operating and maintaining the Transmission System and the Distribution System. Section 4.02 In accordance wi th the terms and subj ect to the conditions as set forth in this Contract and the Houston Contract, the -14-