R-1999-26 - Laserfiche WebLink

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. e Conditions Precedent for Issuance of Additional Bonds - General. As a condition precedent to the issuance of any additional Bonds, the officer of the Authority then having the primary responsibility for the financial affairs of the Board shall have executed a certificate stating (i) that the Authority is not then in default as to any covenant, obligation, or agreement contained in any proceeding relating to any obligations of the Authority payable from and secured by a lien on and pledge of the Pledged Revenues and (ii) all payments into all funds or accounts created and established for the payment and security of all outstanding obligations payable from and secured by a lien on and pledge of the Pledged Revenues have been made in full and that the amounts on deposit in such funds or accounts are the amounts then required to be deposited therein. Such certificate shall be dated as of the date ofsuch Additional Bonds. Conditions Precedent for Issuance of Additional Bonds - Canital Acouisitions. Canital Imnrovements. and anv other lawful nwoose excent for Canital Additions or for refundine. The Authority covenants and agrees that Additional Bonds will not be issued for the purpose of financing Capital Acquisitions, Capital Improvements, or any other lawful purpose (except for Capital Additions or for refunding, which are to be issued in accordance with the provisions of clauses (c), (d), or (e) of this Section) unless and until the conditions precedent in the paragraph above have been satisfied and, in addition thereto, the Authority has secured a certificate or opinion of the Accountant to the effect that, according to the books and records of the Authority, the Net Earnings for the preceding Year or for 12 consecutive months out of the 15 months immediately preceding the month the order or resolution authorizing the Additional Bonds is adopted are at least equal to the sum of 1.25 times the Average Annual Principal and Interest Requirements for the outstanding Bonds and for the proposed Additional Bonds. In making a detennination of the Net Earnings, the Accountant may (i) take into consideration a change in the rates and charges for services and facilities afforded by the System that became effective at least 60 days prior to the last day of the period for which Net Earnings are determined and (ii) for purposes of satisfying the above Net Earnings test, make a pro forma determination of the Net Earnings for the period of time covered by this certification or opinion based on such change in rates and charges being in effect for the entire period covered by the Accountant's certificate or opinion. In addition, the revenues and expenses of any Capital Acquisition may be added to the net Earnings of the Authority for determinations made under this section. Conditions Precedent for Issuance of Additional Bonds - Canital Additions: Initial Issue. The Authority covenants and agrees that Additional Bonds will not be issued for the purpose of financing Capital additions, unless the same conditions precedent specified in clause (a) above have been satisfied and, in addition thereto, the conditions precedent specified in clause (b) above are satisfied or, in the alternative, the Authority shall have obtained: (a) from the Engineer of Record a comprehensive report for each Capital Addition to be financed, which report shall (A) contain (1) detailed estimates of the cost of acquiring and constructing the Capital Addition, (2) the estimated date the acquisition and construction of the Capital Addition will be completed and commercially operative, and (3) a detailed analysis of the impact of the Capital Addition on the fmancial operations of the System during the construction thereof and for at least five Years after the date the Capital Addition becomes commercially operative, and (B) conclude that (I) the Capital Addition will substantially increase the capacity, or is needed to replace existing facilities, to meet current and projected demands for the service or product to be provided thereby, and (2) the estimated cost of providing the service or product from the Capital Addition will be reasonable in comparison with projected costs for furnishing such service or product from other reasonably available sources; and (b) a certificate of the Engineer of Record to the effect that based on the report prepared for each Capital Addition, the projected Net Earnings for each of the five Years subsequent to the date the Capital Addition becomes commercially operative (as estimated in such report) will be equal to at least 1.25 times the Average Armual Principal and Interest Requirements for Bonds then outstanding or incurred and all Bonds estimated to be issued, if any, for all Capital Acquisitions, Capital Improvements, and Capital Additions then in progress or then being initiated during the period from the date the frrst series of obligations for the Capital Additions is to be delivered through the ftfth Year subsequent to the date the Capital Addition is estimated to become commercially operative. The Board covenants that it will adopt on or before the closing date for the proposed Additional Bonds and enforce any periodic rate increases described in the report of the Engineer of Record; provided, however, if such rate increases are not actually needed for any Year, the Board may be subsequent resolution delay such increase until it becomes actually necessary to comply with its covenants in the paragraph captioned "Additional Bonds" of this Resolution. Conditions Precedent for Issuance of Additional Bonds - Canital Additions: Subseouent Issues. Once the initial Bonds have been delivered for a Capital Addition, the Authority reserves the right to issue Additional Bonds to fInance the remaining costs of such Capital Addition in such amounts as may be necessary to complete the acquisition and construction thereof and make the same commercially operative without satisfaction of any condition precedent under clause (b) or clause (c) of this Section but subject to satisfaction of the following conditions precedent: 14 35