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Covenant 7. Records and Accounts. The city covenants that it shall keep proper books of record and accounts of the enterprise, separate from all other records and accounts, in which complete and correct entries shall be made of ail transactions relating to the enterprise. Said books shall at all times be subject to the inspection of the holders of not less than 10% of the outstand- ing bonds or their representatives authorized in writing. The city covenants that it will cause the books and accounts of the enterprise to be audited annually by an independent certified public accountant or firm of certified public accountants and will make available for inspection by the bondholders at the office of the Director of Finance of said city, a copy of the report of such accountant or accountants. The city covenants that it will cause to be published annually, not more than 120 days after the close of each fiscal year a summary statement showing the amount of gross revenues and the amount of all other funds collected which are required to be pledged or otherwise made avail- able as security for payment of principal of and interest on the bonds, the disbursements from such revenues and other funds in reasonable detail, and a general statement of the financlal and physical condition of the enterprise. The city shall furnish a copy of the statement to any bond- holder upon request. Covenant 8. No Free Service. The city covenants that, except to the extent that the city is required under agreements and/or contracts existing on the effective date of this resolution, no water or other service from the enterprise may be furnished or rendered to the United States of America, the State of California, the city, and municipal or public corporation or district or public agency or any private corporation or person free, and that, except to the extent that the city {s required under agreements and/or contracts existing on the effective date of this resolution, no such service shall be rendered to the United States of America, the State of California, the city, any other municipal or public corporation or district or any private corporation or person at rates lower than those charged other persons for similar service, except that charges to the city for water used for street or sewer flushing and for fire hydrants may be made at rates lower than those charged private persons, and all rates for service rendered to the city shalt be a reasonable charge for the service rendered. No building or other real property of the enterprise shall be furnished free to the city, but the city shall pay into the Revenue Fund the reasonable rental value of any property so used, and reasonable and proper charges for service rendered or quarters furnished to the enterprise shall be paid to the city from the Revenue Fund. The city covenants that it shall at all times during the period any of the bonds are outstanding maintain and enforce valid regulations for the payment of bills for water service and that such regulations shall at ali times during such period provide that the city shall discontinue water service to any user whose water bill has not been paid within the time fixed by said regulations. Covenant 9. Rates and Charges. The city shall and hereby covenants that it shall prescribe, revise and collect such charges for the services, facilities and water of the enterprise which, after making allowances for contingencies and error in the estimates, shall be at least sufficient to pay the following amounts in the order set forth: (a) The interest on and principal or minimum term bond payments of the bonds as they become due and payable; (b) All payments required for compliance with this resolution including payments re- quired to be made into the Reserve Fund; (c) All payments required to meet any other obligations of the city which are charges, liens, encumbrances upon or payable from the revenues of the enterprise; 12