1987-11-09 Regular Meeting - Laserfiche WebLink

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e e ~- to make the payments under section 7.01 hereof shall be payable solely from the revenues and rece ipts of the City System. Such obligation may be characterized as an obligation to pay on a "take or pay. basis whether or not: (a) The Southeast Plant, the Transmission System, and the Distribution System or any part thereof is completed, is operating or operable or its output is suspended, inter- rupted, curtailed or terminated in whole or in part; or (b) Any \~a te r is del i vered or prov ided under this Contract. Said obligations shall not be deemed to constitute a debt of the City or a pledge of its faith and credit; provided, however, nothing herein contained shall be construed as preventing the Ci ty, in its sole discretion, from making any such payment from sources other than said reyenues and receipts. Such obligation to make payments from the revenues and rece ipts of the Ci ty System shall be a!Jsol ute and uncond i t ional and shall cons t i tu te an opera t ing expense of the City System for all purposes. Section 10.03 The Ci ty covenants and agrees to establ ish, maintain and collect rates and charges for the service provided by the City System which shall produce revenues and rece ipts a t leas t suf f ic ient to enable the Ci ty to pay the Au thori ty, when due, all amounts payable by the City under this Contract and to pay any and all such other amounts payable from, or which might constitute a charge and a lien upon, the revenues and receipts derived from the operation of the City System, including all operation and maintenance expenses and the principal of, premium, if any, and interest on all revenue bonds and other obligations related to the City System. Section 10.04 The City covenants and agrees that it shall -31-