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described within Section XVII, RENEWAL & FM7LACEMENr AC+CMM. If at any <br />time thereafter the County takes possession or makes use of the utility <br />system, all contributions in aid of construction funds collected will <br />vest to the County and those funds which have been expended or an equal <br />a a mt would be deducted frau any purchase price. <br />SECTION XVII <br />771 !• Y -' i 171 •• <br />Two and one half percent (278) of the operating cosi* of the Utility <br />shall be placed in an interest bearing renewal and replacement account <br />for purposes of renewal and/or replacement of the capital assets of the <br />water and/or wastewater system of the Utility. Additionally, the <br />Utility shall initially fund said account with two thousand dollars <br />($2,000) which will also be reserved for capital maintenwim items. <br />Interest shall accumulate in said account until t'be account reaches ten <br />thousand dollars ($10,000); thereafter inter shall be paid/to the <br />Utility annually. Said funds shall be used as a sinking fund and <br />applied only for renewal and/or replacement of the water and/or <br />wastewater system by the Utility as the need erises; the perceot:age <br />required to be placed in the renewal and replacement account may be <br />amended after review by the County as necessary to maintain a sufficient <br />account balance taking into account the general condition of the system. <br />The County is granted the right to make necessary repairs using said <br />funds in the event of default on the part of the Utility in maintaining <br />the quality standards established herein. In the event that the County <br />purchases the corporation's utility system pursuant to the provisions of <br />this franchise as stated above, then any funds in said renewal and <br />replacement account shall vest in the County. <br />SECTION XVIII <br />1. The Utility shall at all times maintain public liability and <br />property damage insurance in such amounts as required by the Board and <br />set forth in, to wit: <br />Exhibit "B" attached hereto and incorporated herein. <br />2. The Utility shall cause the County to be duly notified by the <br />insurer in the event of any modifications or deletions of the insurance <br />as set forth in said Exhibit "B". Said amounts shall be adjusted by the <br />Utility, as shall be required frau time to time by the Board in <br />accordance with good business practices as determined by safe business <br />standards as established by the Board for the protection of the County <br />and the general public and for any liability which may result from any <br />action of the Utility. <br />12 <br />