Ordinance 3945 - Laserfiche WebLink

as under good practice are ordinarily carried on such buildings , equipment, facilities and properties by privately owned utili- ties engaged in the operation of water systems, to the full in- surable 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 Weyerhaeuser Timber Company, Scott Paper Company, Simpson-Lee Paper Company and/or any other industrial water user under con- tract 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 contracts 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 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 whatsoever free of charge. Section 15 . That any payments in lieu of any taxes or contributions to the General Fund of the City which it may require to be made out of the money in the Water System Fund are hereby declared to be subordinate and inferior to all charges made upon the money in such 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 interest on all revenue bonds of the City 2c 23.