1999-09-08 Special Called Regular Meeting, Public Hearing, and Workshop Meeting

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. e (a) from the Engineer of Record a comprehensive report for each Capital Addition to be fmanced, 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 financial 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 Revenue 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 Annual Principal and Interest Requirements for Pari~ Bonds then outstanding or incurred and all Parity 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 first series of obligations for the Capital Additions is to be delivered through the fifth 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 by subsequent resolution delay such increase until it becomes actually necessary to comply with its covenants in Section 8 of this Resolution. 8.04. Conditions Precedent for Issuance of Additional Bonds - Capital Additions: Subsequent Issues. Once the initial Parity Bonds have been delivered for a Capital Addition, the Authority reserves the right to issue Additional Bonds to fmance 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: (a) the Board makes a forecast (the "Forecast") of the operations of the System demonstrating the System's ability to pay all obligations payable from the Pledged Revenues of the System to be outstanding after the issuance of the Parity Bonds then being issued for the period (the "Forecast Period") of each ensuing Year through the fifth Year subsequent to the latest estimated date such Capital Addition is expected to be commercially operative, and (b) the Engineer of Record reviews the Forecast and executes a certificate to the effect that the Forecast is reasonable, and that based thereon (and such other factors deemed to be relevant), the Pledged Revenues of the System will be adequate to pay all the obligations payable from the Pledged Revenues to be outstanding after the issuance of the Parity Bonds then being issued for the Forecast Period. 8.05. Refundin~ Bonds. The Authority reserves the right to issue refunding bonds to refund all or any part of the outstanding Parity Bonds (pursuant to any law then available), upon such terms and conditions as the Board may deem to be in the best interest of the Authority and its inhabitants, and if less than all such outstanding Parity Bonds are refunded, the conditions precedent (for the issuance of Additional Bonds) set forth in clauses (a) and (b) of this Section shall be satisfied and the Accountant's certificate or opinion required by clause (b) shall give effect to the issuance of the proposed refunding bonds (and shall not give effect to the obligations being refunded following their cancellation or provision being made for their payment). No Accountant's certificate otherwise required by clause (b) will be required for refunding bonds, after giving effect to such proposed refunding, if there is no increase in debt service for any Year before or including any Year in which there will be debt service on Parity Bonds outstanding both before and after such refunding and any such refunding bond does not have a lien on Pledged Revenues superior to the obligation which it refunds. 17