51-91 $4,750,000 Water System Mortgage Revenue Bonds

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semi-annually on or before the tenth (10th) days of June and December of each year during the term of this franchise; and to provide means for the payment of all amounts to be paid by the City under this franchise, in the event funds are not available from any other source, the City, in its annual budget and t~xation and appropriation ordinances each year during the term of this franchise, obligates itself to include a sufficient sum to pay for those services or products. Section H. In the event that the foregoing rates (which are minimum' rates, rather than maximum rates) shall prove insufficient to provide revenues yielding, after meeting operating and maintenance charges in an amount consistent with sound management and commensurate with the services required by the City, an annual return of approximately eight percent (8%) on the reasonable value of the Utility, including a reasonable allowance for depreciation, plus the cost of betterments, improvements and extensions, less depreciation thereon, as may have been required or approved by the City, then the City, by appropriate ordinances, shall raise such rates, or approve and authorize action of the Grantee raising such rates, sufficiently to produce that return in the manner required by any applicable law, but the duty of the City to raise, or to approve and authorize the Grantee to raise, the rates shall arise forthwith upon the request of the Grantee, any law to the contrary notwithstanding. In the event such action by the City is not taken, a complaint may be filed with the Public Utilities Commission of Ohio or its successors in office and proceedings had before the Commission as provided in Sections 4909.34 to 4909.39, inclusive, of the Revised Code of Ohio. The Grantee's right to complain to the Commission shall be cumulative to its right to enforce the performance of the duty so imposed on the City under the provisions of Section 2731.01 et s_9_q., of the Revised Code of Ohio. -- Section I. For the second ten-year period of this franchise, the rates to be charged by the Grantee shall be fixed by the Council of the City by and with the consent of the Grantee or, in the event of the inability of the City and the Grantee to agree, shall be such as may be fixed or determined in accordance with the provisions of the Revised Code of Ohio, including Sections 4909.16 to 4909.19 thereof, but in any event, the rates shall be such as to produce to the Grantee the same return as provided in Section H hereof. Section J. The Grantee shall keep all records and accounts of the Utility in form prescribed by the Public Utilities Commission of Ohio, subject always to the right of the Council of the City to require more detailed forms and to exact more comprehensive statements than may be prescribed by the PUCO. The City shall at all times have access to, and opportunity for inspecting, all properties of the Utility and shall at all times have opportunity for auditing, examining and keeping copies of all records and accounts in any way pertaining to the ownership or operation of the Utility, together with the right to require of the Grantee detailed reports relating to the finances, operation, management and ownership thereof. The City shall have the further right to establish standards of service, to prevent unjust discrimination in service or rates, and tO require adequate extension of plant, equipment and service. Section K. No rights herein granted to the Grantee to construct, maintain or operate the Utility shall be construed as exclusive or as preventing the City from granting a franchise or privilege to any other .person, firm or corporation. Section L. The City reserves the right to terminate this franchise upon the City's purchase of all of the property of the Grantee in the streets and highways of the City and elsewhere, used in or useful for the operation Of the Utility at a price to be determined in accordance with law. Nothing in this franchise shall prevent the City from acquiring the property of the Grantee by condemnation proceedings or in any other lawful mode. Upon the acquisition by the City of any property of any Grantee bY purchase, condemnation or otherwise, -11-