Ordinance 4113 - Laserfiche WebLink

. e . That it will at all times carry fire and extended coverage and such other classes of insurance on such of the buildings , equipment , facilities and properties of the System as under good prac- tice are ordinarily carried on such buildings , equipment , facilities and properties by privately owned utilities engaged in the operation of water systems , to the full insurable value thereof, and that it will also carry public liability and property damage insurance at all times which, in the opinion of the Council, is adequate . That it will also carry insurance in an amount of not less than $200,000 to reimburse the City for any failure of Weyer- haeuser Timber Company, Scott Paper Company, Simpson-Lee Paper Company and/or any other industrial water user under contract to purchase water, to pay the commodity charges due the City under the terms of the water contracts entered into between each of said companies and the City and any and all amendments thereto, and under the terms of any water con- tracts which may be entered into between any other industrial water user and the City, by reason of fire or any other damages to the facilities of said companies or users that are covered by extended coverage insurance . Any and all payments made to the City under such policies are hereby declared to be in lieu of such commodity charges , and in Ordinance No . 3945 and are subject to all of the covenants and pledges herein/made as to the use and disposal of such commodity charge payments . f. That it will not furnish water to any customer whatso- ever free of charge . Section 12 . That any payments in lieu of any taxes or con- tributions to the General Fund of the City which it may require to be made out of the money in the Water ,,stem Fund are hereby declared to be subordinate and inferior to all charges made upon the money in such Water System Fund to pay the normal costs of maintenance and operation of the System and to pay and secure the payment of the principal of and 15 .