For the purpose of further safeguarding the interests of the holders of the bonds herein authorized, it is specifically provided as follows.
(A) All contracts let by the town in connection with the construction of the sewage works shall be let after due advertisement as required by the laws of the state, and all contractors shall be required to furnish surety bonds in an amount equal to 100% of the amount of such contracts, to insure the completion of the contracts, in accordance with their terms, and such contractors shall also be required to carry such employers' liability and public liability insurance as are required under the laws of the state in the case of public contracts and shall be governed in all respects by the laws of the state relating to public contracts.
(B) The works shall be constructed under the supervision and subject to the approval of Howard J. Barth & Associates, or such other competent engineer as shall be designated by the town. All estimates for work done or material furnished shall first be checked by the engineer and approved by the town prior to payment therefor.
(C) The town shall at all times maintain its sewage works in good condition and operate the same in an efficient manner and at a reasonable cost.
(D) So long as any of the bonds herein authorized are outstanding, the town shall maintain insurance on the insurable parts of said works of a kind and in an amount such as would normally be carried by private companies engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business under the laws of the state. Insurance proceeds shall be used in replacing or repairing the property destroyed or damaged; or if not used for that purpose shall be deposited in the Sewage Works Sinking Fund and credited to the Debt Service Reserve Account.
(E) So long as any of the bonds are outstanding, the town shall not mortgage, pledge or otherwise encumber such works, or any part thereof, nor shall it sell, lease or otherwise dispose of any portion thereof except equipment or property which may become worn out, obsolete or no longer suitable for use in the sewage works.
(F) Except as hereinbefore provided in § 32.16, so long as any of the bonds herein authorized are outstanding, no additional bonds or other obligations pledging any portion of the revenues of said sewage works shall be authorized, executed or issued by the town except such as shall be made subordinate and junior in all respects to the bonds herein authorized, unless all of the bonds herein authorized have been duly called for redemption and sufficient funds to effect the redemption and retirement have been deposited at the place of redemption on the date fixed for redemption in accordance with the terms and conditions of said bonds and this chapter.
(G) The town shall take all action or proceedings necessary and proper to require connection of all property where liquid and solid waste, sewage, night soil, or industrial waste is produced with available sanitary sewers. The town shall, insofar as possible, cause all such sanitary sewers to be connected with the sewage works.
(H) The provisions of this chapter shall constitute a contract by and between the town and the holders of the sewage works revenue bonds herein authorized, and after the issuance of the bonds this chapter shall not be repealed or amended in any respect which will adversely affect the rights of the holders of the bonds, nor shall the Town Council adopt any law, ordinance or resolution which in any way adversely affects the rights of such holders so long as any of said bonds or the interest thereon remain unpaid.
(I) The provisions of this chapter shall be construed to create a trust in the proceeds of the sale of the bonds herein authorized for the uses and purposes therein set forth, and the holders of the bonds shall retain a lien on such proceeds until the same are applied in accordance with the provisions of this chapter and of said governing Act. The provisions of this chapter shall also be construed to create a trust in the portion of the net revenues herein directed to create a trust in the portion of the net revenues herein directed to be set apart and paid into the Sewage Works Sinking Fund for the uses and purposes of said Fund as in this chapter set forth. The holders of said bonds shall have all of the rights, remedies and privileges set forth in the provisions of the governing Act hereinbefore referred to, including the right to have a receiver appointed to administer said sewage works, in the event of default in the payment of the principal of or interest on any of the bonds herein authorized or in the event of default in respect to any of the provisions of this chapter or the governing Act.
(1989 Code, § 32.17) (Ord. SB-83, passed 9-21-1983)