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HomeMy WebLinkAbout2004-02-02-Resolutions 04-32_Bonds - GO Water Series 2004A - IssuanceRESOLUTION NO.04-32 Resolution providing for the issuance of $1,090,000 General Obligation Water Bonds,Series 2004A and providing for the levy of taxes to pay the Sllille WHEREAS,pursuant to the provisions of Section 384.24A of the Code of Iowa, the City of Waukee,Iowa (the "City"),has heretofore proposed to contract indebtedness and enter into a loan agreement (the "Loan Agreement")in the principal amount of $1,090,000 to provide funds to pay the cost,to that extent,of the construction, reconstruction,improvement,extension and equipping of the Municipal Waterworks System of the City,and has published notice of the proposed action and has held a hearing thereon:and WHEREAS,pursuant to advertisement of sale,the City received bids for the purchase of $1,090,000 General Obligation Water Bonds,Series 2004A (the "Bonds"),to be issued in evidence of the City's obligation under the Loan Agreement,and the City awarded the Bonds to and determined to enter into the Loan Agreement with Bankers' Bank,Madison,Wisconsin (the "Lender"); NOW,THEREFORE,Be It Resolved by the City Council of the City of Waukee, Iowa,as follows: Section 1.The Bonds are hereby authorized to be issued in evidence of the obligation of the City under the Loan Agreement,in the total aggregate principal amount of $1,090,000,to be dated February 1,2004,in the denomination of $5,000 each,or any integral multiple thereof,maturing on June 1 in each of the years,in the respective principal amounts and bearing interest at the respective rates,as follows: Principal Interest Rate Principal Interest Rate Year Amount Per Annum Year Amount Per Annum 2005 $65,000 1.50%2012 $75,000 3.30% 2006 $65,000 1.75%2013 $80,000 3.50% 2007 $65,000 2.00%2014 $85,000 3.75% 2008 $65,000 2.40%2015 $90,000 3.90% 2009 $70,000 2.60%2016 $90,000 4.10% 2010 $70,000 2.80%2017 $95,000 4.20% 2011 $75,000 3.00%2018 $100,000 4.25% Bankers Trust Company,N.A.of Des Moines,Iowa,is hereby designated as the Registrar and Paying Agent for the Bonds and may be hereinafter referred to as the "Registrar"or the "Paying Agent".The City shall enter into an agreement (the "Registrar/Paying Agent Agreement")with the Registrar,in substantially the form as has been placed on file with the Council;the Mayor and City Clerk are hereby authorized and directed to sign the Registrar/Paying Agent Agreement on behalf of the City;and the Registrar/Paying Agent Agreement is hereby approved.ITheCityreservestherighttoprepaypartoralloftheBondsmaturingineachof the years 2011 to 2018,inclusive,prior to and in any order of maturity on June 1,2010, or on any date thereafter upon terms of par and accrued interest.If less than all of the Bonds of any like maturity are to be redeemed,the particular part of those Bonds to be redeemed shall be selected by the Registrar by lot.The Bonds may be called in part in one or more units of $5,000.If less than the entire principal amount of any Note in a denomination of more than $5,000 is to be redeemed,the Registrar will issue and deliver to the registered owner thereof,upon surrender of such original Bond,a new Bond or Bonds,in any authorized denomination,in a total aggregate principal amount equal to the unredeemed balance of the original Bond.Notice of such redemption as aforesaid identifying the Bond or Bonds (or portion thereof)to be redeemed shall be mailed by certified mail to the registered owners thereof at the addresses shown on the City's registration books not less than 30 nor more than 60 days prior to such redemption date. All of such Bonds as to which the City reserves and exercises the light of redemption and as to which notice as aforesaid shall have been given and for the redemption of which funds are duly provided,shall cease to bear interest on the redemption date. All of the interest on the Bonds shall be payable semiannually on the first day of June and December in each year,commencing June 1,2004.Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months.Payment of interest on the Bonds shall be made to the registered owners appearing on the registration books of the City at the close of business on the fifteenth day of the month next preceding the interest payment date and shall be paid by check or draft mailed to the registered owners at the addresses shown on such registration books.Principal of the Bonds shall be payable in lawful money ofthe United States of America to the registered owners or their legal representatives upon presentation and surrender of the Note or Bonds at the office of the Paying Agent. The Bonds shall be executed on behalf of the City with the official manual or facsimile signature of the Mayor and attested with the official manual or facsimile signature of the City Clerk and shall have the City's seal impressed or printed thereon, and shall be fully registered Bonds without interest coupons.In case any officer whose signature or the facsimile of whose signature appears on the Bonds shall cease to be such officer before the delivery of the Bonds,such signature or such facsimile signature shall nevertheless be valid and sufficient for all purposes,the same as if such officer had remained in office until delivery. The Bonds shall not be valid or become obligatory for any purpose until the Certificate of Authentication thereon shall have been signed by the Registrar. The Bonds shall be fully registered as to principal and interest in the names of the owners on the registration books of the City kept by the Registrar,and after such registration,payment of the principal thereof and interest thereon shall be made only to the registered owners or their legal representatives or assigns.Each Note shall be transferable only npon the registration books of the City upon presentation to the Registrar,together with either a written instrument of transfer satisfactory to the Registrar or the assignment form thereon completed and duly executed by the registered owner or the duly authorized attomey for such registered owner. The record and identity of the owners of the Bonds shall be kept confidential as provided by Section 22.7 of the Code oflowa. Section 5.Notwithstanding anything above to the contrary,the Bonds shall be issued initially as Depository Bonds,with one fully registered Bond for each maturity date,in principal amounts equal to the amount of principal maturing on each such date, and registered in the name of Cede &Co.,as nominee for The Depository Trust Company,New York,New York ("DTC").On original issue,the Bonds shall be deposited with DTC for the purpose of maintaining a book-entry system for recording the ownership interests of its participants and the transfer of those interests among its participants (the "Participants").In the event that DTC determines not to continue to act as securities depository for the Bonds or the City determines not to continue the book -entry system for recording ownership interests in the Bonds with DTC,the City will discontinue the book-entry system with DTC.If the City does not select another qualified securities depository to replace DTC (or a successor depository)in order to continue a book -entry system,the City will register and deliver replacement bonds in the form of fully registered certificates,in authorized denominations of $5,000 or integral multiples of $5,000,in accordance with instructions from Cede &Co.,as nominee for DTC.In the event that the City identifies a qualified securities depository to replace DTC,the City will register and deliver replacement bonds,fully registered in the name of such depository,or its nominee,in the denominations as set forth above,as reduced from time to time prior to maturity in connection with redemptions or retirements by call or payment,and in such event,such depository will then maintain the book -entry system for recording ownership interests in the Bonds. Ownership interest in the Bonds may be purchased by or through Participants. Such Participants and the persons for whom they acquire interests in the Bonds as nominees will not receive certificated Bonds,but each such Participant will receive a credit balance in the records of DTC in the amount of such Participant's interest in the Bonds,which will be confirmed in accordance with DTC's standard procedures.Each such person for which a Participant has an interest in the Bonds,as nominee,may desire to make arrangements with such Participant to have all notices of redemption or other connnunications of the City to DTC,which may affect such person,forwarded in writing by such Participant and to have notification made of all interest payments. The City will have no responsibility or obligation to such Participants or the persons for whom they act as nominees with respect to payment to or providing of notice for such Participants or the persons for whom they act as nominees. As used herein,the term "Beneficial Owner"shall hereinafter be deemed to include the person for whom the Participant acquires an interest in the Bonds. DTC will receive payments from the City,to be remitted by DTC to the Participants for subsequent disbursement to the Beneficial Owners.The ownership interest of each Beneficial Owner in the Bonds will be recorded on the records of the Participants whose ownership interest will be recorded on a computerized book-entry system kept by DTC. When reference is made to any action which is required or permitted to be taken by the Beneficial Owners,such reference shall only relate to those permitted to act (by statute,regulation or otherwise)on behalf of such Beneficial Owners for such purposes. When notices are given,they shall be sent by the City to DTC,and DTC shall forward (or cause to be forwarded)the notices to the Participants so that the Participants can forward the same to the Beneficial Owners. Beneficial Owners will receive written confirmations of their purchases from the Participants acting on behalf of the Beneficial Owners detailing the terms of the Bonds acquired.Transfers of ownership interests in the Bonds will be accomplished by book entries made by DTC and the Participants who act on behalf of the Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interest in the Bonds,except as specifically provided herein.Interest and principal will be paid when due by the City to DTC,then paid by DTC to the Participants and thereafter paid by the Participants to the Beneficial Owners. Section 6.The Bonds shall be in substantially the following form: ] (Form of Note) UNITED STATES OF AMERICA STATE OF IOWA COUNTY OF DALLAS CITY OF WAUKEE GENERAL OBLIGATION WATER BOND,SERIES 2004A No.$,--- RATE MATURITY DATE NOTE DATE CUSIP February 1,2004 The City of Waukee (the "City"),in the County of Dallas,State ofIowa,for value received,promises to pay on the maturity date of this Note to OTregistered assigns,the principal sum of DOLLARS in lawful money of the United States of America upon presentation and surrender of this Bond at the office of Bankers Trust Company,N.A.,Des Moines,Iowa (hereinafter referred to as the "Registrar"OTthe "Paying Agent"),with interest on said sum,until paid,at the rate per annum specified above from the date of this Bond,or from the most recent interest payment date on which interest has been paid,on June 1 and December 1 of each year,commencing June 1,2004,except as the provisions hereinafter set forth with respect to redemption prior to maturity may be or become applicable hereto. Interest on this Bond is payable to the registered owner appearing on the registration books of the City at the close of business on the fifteenth day of the month next preceding the interest payment date,and shall be paid by check or draft mailed to the registered owner at the address shown on such registration books.Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months. This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by the Registrar. This Bond is one of a series of General Obligation Water Bonds,Series 2004A (the "Bonds"),in the aggregate principal amount of $1,090,000 issued by the City to evidence its obligation under a certain loan agreement,dated as of February 1,2004 (the "Loan Agreement"),entered into by the City fOTthe purpose of providing funds to pay costs of the construction,reconstruction,improvement,extension and equipping of the Municipal Waterworks System of the City. The Bonds are issued pursuant to and in strict compliance with the provisions of Chapter 384 and Chapter 76 of the Code of Iowa,2003,and all other laws amendatory thereof and supplemental thereto,and in conformity with a resolution of the City Council authorizing and approving the Loan Agreement and providing for the issuance and securing the payment of the Bonds (the "Resolution"),and reference is hereby made to the Resolution and the Loan Agreement for a more complete statement as to the source of payment of the Bonds and the rights of the owners ofthe Bonds. The City reserves the right to prepay part or all of the Bonds maturing in each of the years 2011 to 2018,inclusive,prior to and in any order of maturity on June 1,2010, or on any date thereafter upon terms of par and accrued interest.If less than all of the Bonds of any like maturity are to be redeemed,the particular part of those Bonds to be redeemed shall be selected by the Registrar by lot.The Bonds may be called in part in one or more units of $5,000,If less than the entire principal amount of any Bond in a denomination of more than $5,000 is to be redeemed,the Registrar will issue and deliver to the registered owner thereof,upon surrender of such original Bond,a new Bond or Bonds,in any authorized denomination,in a total aggregate principal amount equal to the unredeemed balance of the original Bond.Notice of such redemption as aforesaid identifying the Bond or Bonds (or portion thereof)to be redeemed shall be mailed by certified mail to the registered owners thereof at the addresses shown on the City's registration books not less than 30 nor more than 60 days prior to such redemption date. All of such Bonds as to which the City reserves and exercises the right of redemption and as to which notice as aforesaid shall have been given and for the redemption of which funds are duly provided,shall cease to bear interest on the redemption date,J This Bond is fully negotiable but shall be fully registered as to both principal and interest in the name of the owner on the books of the City in the office of the Registrar, after which no transfer shall be valid unless made on said books and then only upon presentation of this Bond to the Registrar,together with either a written instrument of transfer satisfactory to the Registrar or the assignment form hereon completed and duly executed by the registered owner or the duly authorized attorney for such registered owner. The City,the Registrar and the Paying Agent may deem and treat the registered owner hereof as the absolute owner for the purpose of receiving payment of or on account of principal hereof,premium,if any,and interest due hereon and for all other purposes,and the City,the Registrar and the Paying Agent shall not be affected by any notice to the contrary. And It Is Hereby Certified and Recited that all acts,conditions and things required by the laws and Constitution of the State of Iowa,to exist,to be had,to be done or to be performed precedent to and in the issue of this Bond were and have been properly existent,had,done and performed in regular and due form and time;that provision has been made for the levy of a sufficient continuing annual tax on all the taxable property within the City for the payment of the principal of and interest on this Bond as the same will respectively become due;that the faith,credit,revenues and resources and all the real and personal property of the City are irrevocably pledged for the prompt payment hereof, ,I both principal and interest;and that the total indebtedness of the City,including this Bond,does not exceed any constitutional or statutory limitations. IN TESTIMONY WHEREOF,the City of Waukee,Iowa,by its City Council,has caused this Bond to be sealed with the facsimile of its official seal,to be executed with the duly authorized facsimile signature of its Mayor and attested with the duly authorized facsimile signature of its City Clerk,all as of February 1,2004, CITY OF WAUKEE,IOWA By .2D~o"__N~o"_t",SI,",'gn"'---_ Mayor Attest: Do Not Sign City Cleric (Facsimile Seal) Registration Date:(Registration) REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within-mentioned Resolution. BANKERS TRUST COMPANY, N.A. Des Moines,Iowa Registrar By (Authorized Signature) Authorized Officer 1 1 ABBREVIATIONS The following abbreviations,when used in this Bond,shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM TENENT JTTEN as tenants in common UTMA as tenants by the entireties as joint tenants with right of survivorship and not as tenants in common (Custodian) As Custodian for"----~~~~~~~~~ (Minor) under Uniform Transfers to Minors Act (State) Additional abbreviations may also be used though not in the list above. ASSIGNMENT For valuable consideration,receipt of which IS hereby acknowledged,the undersigned assigns this Bond to (Please print or type name and address of Assignee) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE and does hereby irrevocably appoint ,_____-~-,_____,_____----c-----c-,_____=--__=_=----:c'Attorney,to transfer this Bond on the books kept for registration thereof with full power of substitution. Dated: Signature guaranteed: (Signature guarantee must be provided in accordauce with the prevailing standards and procedures of the Registrar and Transfer Agent.Such staudards and procedures may require signatures to be guaranteed by certain eligible guarantor institutions that participate in a recognized signature guarantee program.) NOTICE:The signature to this Assignment must correspond with the name of the registered owner as it appears on this Bond in every particular,without alteration or enlargement or any change whatever. I I Section 7.The Bonds shall be executed as herein provided as soon after the adoption of this resolution as may be possible,and thereupon they shall be delivered to the Registrar for registration,authentication and delivery to the Lender,upon receipt of the loan proceeds,and all action heretofore taken in connection with the Loan Agreement is hereby ratified and confirmed in all respects. Section 8.For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on the Bonds as the same become due,there is hereby ordered levied on all the taxable property in the City in each of the years while the Bonds are outstanding,a tax sufficient for that purpose,and in furtherance of this provision,but not in limitation thereof,there is hereby levied on all the taxable property in the City the following direct annual tax for collection in each of the following fiscal years,to-wit: For collection in the fiscal year beginning July I, 2004,sufficient to produce the net annual sum of $111,540; For collection in the fiscal year beginning July I, 2005,sufficient to produce the net annual sum of $98,930; For collection in the fiscal year beginning July 1, 2006,sufficient to produce the net annual sum of $97,793; For collection in the fiscal year beginning July I, 2007,sufficient to produce the net annual sum of $96,493; For collection in the fiscal year beginning July I, 2008,sufficient to produce the net annual sum of $99,933; For collection in the fiscal year beginning July 1, 2009,sufficient to produce the net annual sum of $98,113; For collection in the fiscal year beginning July 1, 2010,sufficient to produce the net annual sum of $101,153; For collection in the fiscal year beginning July 1, 2011,sufficient to produce the net annual sum of $98,903; For collection in the fiscal year beginning July 1, 2012,sufficient to produce the net annual sum of $101,428;I For collection in the fiscal year beginning July 1, 2013,sufficient to produce the net annual sum of $103,628; For collection in the fiscal year beginning July 1, 2014,sufficient to produce the net annual S1Ull of $105,440; For collection in the fiscal year beginning July 1, 2015,sufficient to produce the net annual sum of $101,930; For collection in the fiscal year beginning July 1, 2016,sufficient to produce the net annual sum of $103,240; For collection in the fiscal year beginning July 1, 2017,sufficient to produce the net annual sum of $104,250.]Section 9.A certified copy of this resolution shall be filed with the County Auditor of Dallas County,and said Auditor is hereby instructed to enter fOT collection and assess the tax hereby authorized.When annually entering such taxes fOTcollection, the County Auditor shall include the same as a part of the tax levy for Debt Service FIUld purposes of the City and when collected,the proceeds of the taxes shall be converted into the Debt Service Fund of the City and set aside therein as a special account to be used solely and only for the payment of the principal of and interest on the Bonds hereby authorized and for no other purpose whatsoever.Any amount received by the City as accrued interest on the Bonds shall be deposited into such special account and used to pay interest due on the Bonds on the first interest payment date. Section 10.The interest or principal and both of them falling due in any year OTyears shall,if necessary,be paid promptly from current fimds on hand in advance of taxes levied and when the taxes shall have been collected,reimbursement shall be made to such CIUTentfunds in the S1Ull thus advanced. The City hereby pledges the faith,credit,revenues and resources and all of the real and personal property of the City for the full and prompt payment of the principal of and interest on the Bonds. Section 11.It is the intention of the City that interest on the Bonds be and remain excluded from gross income for federal income tax purposes pursuant to the appropriate provisions of the Internal Revenue Code of 1986,as amended,and the Treasury Regulations in effect with respect thereto (all of the foregoing herein referred to J as the "Internal Revenue Code").In furtherance thereof,the City covenants to comply with the provisions of the Internal Revenue Code as they may from time to time be in effect OT amended and further covenants to comply with the applicable future laws, regulations,published rulings and court decisions as may be necessary to insure that the interest on the Bonds will remain excluded from gross income for federal income tax purposes.Any and all of the officers of the City are hereby authorized and directed to take any and all actions as may be necessary to comply with the covenants herein contained. The City hereby designates the Bonds as "Qualified Tax Exempt Obligations"as that tenn is used in Section 265(b)(3)(B)of the Internal Revenue Code. Section 12.Continuing Disclosure. (a)Limited Exemption from Rule.The Securities and Exchange Commission (the "SEC")has promulgated amendments to Rule 15c2-12 under the Securities Exchange Act of 1934 (17 C.F.R.§240.15c2-12)(as in effect and interpreted from time to time,the "Rule")which govern the obligations of certain underwriters to require that issuers of municipal bonds enter into contracts for the benefit of the bondholders to provide continuing disclosure with respect to the bonds.This Council hereby finds, determines and declares that the Bonds are exempt from the application of paragraph (b )(5)of the Rule by reason of the exemption granted in paragraph (d)(2) thereof.Specifically,this Council hereby finds that the only "obligated person"(within the meaning of the Rule)with respect to the Bonds is the City and that,giving effect to the issuance of the Bonds and any other securities required to be integrated with the Bonds,there will not be more than $10 million in principal amount of municipal securities outstanding on the date of issuance of the Bonds as to which the City is an obligated person (excluding municipal securities exempt from the Rule under paragraph (d)(l)thereof because,among other things,they were issued in minimum denominations of $100,000).In making such finding,the City hereby represents that it has not issued within the six months before the date of issuance of the Bonds and that it reasonably expects that it will not issue within six months after the date of issuance ofthe Bonds,other securities of the City of substantially the same security and providing financing fOTthe same general purpose or purposes as the Bonds.The exemption from the Rule for the Bonds is conditioned upon the City agreeing to provide certain continuing disclosure as hereinafter provided.The City has complied in all material respects with any undertaking previously entered into by it under the Rule. (b)Purpose and Beneficiaries.To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit participating underwriters in the primary offering of the Bonds to comply with paragraph (b)(5)of the Rule,which will enhance the marketability of the Bonds,the City hereby makes the covenants and agreements contained in this section for the benefit of the Owners (as hereinafter defined)from time to time of the outstanding Bonds. If the City fails to comply with any provisions of this section,any person aggrieved thereby,including the Owners of any outstanding Bonds,may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section,including an action for specific performance or a writ of mandamus.Notwithstanding anything to the contrary contained herein,in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section,"Owner"or "Bondowner"means,with respect to a Bond, the registered owner or owners thereof appearing in the register maintained by the Registrar or any "Beneficial Owner"(as hereinafter defined)thereof,if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar.As used herein,"Beneficial Owner" means,with respect to a Bond,any person or entity which (i)has the power,directly or indirectly,to vote or consent with respect to,or to dispose of ownership of,such Bond (including persons or entities holding Bonds through nominees,depositories or other intermediaries),or (b)is treated as the owner of the Bond for federal income tax purposes. (c)Infonnation To Be Disclosed.The City will provide,either directly or indirectly through an agent designated by the City,the following information at the following times in an appropriate manner: (1)At least annually to the state information depository then designated or operated by the State of Iowa (the "State Depository"),if any,or,if no State Depository then exists,to any person or entity upon request,certain information (the "Disclosure Information"),including the audited financial statements of the City and any other information of the type contained in the Official Statement for the Bonds not included in such financial statements but customarily prepared and made publicly available by the City,which information may be unaudited and which,for financial statement information,shall be for the most recent fiscal year of the City (if in response to a request,the most recent fiscal year ending not less than 270 days before the date of the request),and,for other such information, the information most recently compiled by the City on a customary basis and publicly available under applicable data privacy or other laws. ] The City Administrator is hereby designated as the proper recipient of requests for Disclosure Information. Any or all of the Disclosure Information may be incorporated by reference,if it is updated as required hereby,from other documents,including official statements,which have been submitted to each then nationally recognized municipal securities information repository under the Rule or the SEC.If the document incorporated by reference is a final official statement,it must be available from the Municipal Securities Rulemaking Board,The City shall clearly identify in the Disclosure Information each document so incorporated by reference.1 If the Disclosure Information is changed because it is no longer compiled or publicly available or this paragraph (c)(1)is amended as permitted by subsection (d),then the City shall include in the next Disclosure Information to be delivered hereunder,to the extent necessary,an explanation of the reasons for the amendment and the effect of any change in the type of information provided. (2)In a timely manner,to the Municipal Securities Rulemaking Board and to the State Depository,if any,notice of the occurrence of any of the following events which is a Material Fact (as hereinafter defmed): (A) delinquencies; Principal and interest payment (B)Non-payment related defaults; (C)Unscheduled draws on debt service reserves reflecting financial difficulties; (D)Unscheduled draws on credit enhancements reflecting financial difficulties; (E)Substitution of credit or liquidity providers,or their failure to perform; (F)Adverse tax opinions or events affecting the tax-exempt status of the security; (G)Modifications to rights of security holders; (H)Bond calls; (I)Defeasances; (J)Release,substitution,or sale of property securing repayment of the securities;and (K)Rating changes. As used herein,a "Material Fact"is a fact as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy,hold or sell a Bond or,if not disclosed,would significantly alter the total information otherwise available to an investor from the Official Statement,information disclosed hereunder or information generally available to the public.Notwithstanding the foregoing sentence,a "Material Fact"is also an event that would be deemed "material" for purposes of the purchase,holding or sale of a Bond within the meaning of applicable federal securities laws,as interpreted at the time of discovery of the occurrence of the event. (3)In a timely manner,to the Municipal Securities Rulemaking Board and to the State Depository,if any,notice of the occurrence of any of the following events or conditions: ] (A)the amendment or supplementing of this section pursuant to subsection (d),together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); (B)the termination ofthe obligations of the City under this section pursuant to subsection (d); (C)any change in the accounting principles pursuant to which the fmancial statements constituting a portion of the Disclosure Information are prepared;and (D)any change in the fiscal year of the City. (d)Tenn;Amendments;Interpretation.The covenants of the City in this section shall remain in effect so long as any Bonds are outstanding.Notwithstanding the preceding sentence,however,the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that,because of legislative action or final judicial or administrative actions or proceedings,the failure of the City to comply with the requirements of tills section will not cause participating underwriters in the primary offering of the Bonds or securities firms recommending the Bonds to prospective purchasers while the Bonds are outstanding to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934,as amended,or any statutes or laws successory thereto or amendatory thereof. ] This section may be amended or supplemented by the City from time to time, without notice to or the consent of tile Owners of any Bonds,by a resolution of this Council filed in the office of the recording officer of the City accompanied by an opinion of Bond Counsel,who may rely on certificates of the City and others and the opinion may he subject to customary qualifications,to the effect that:(i)such amendment or supplement (a)is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity,nature or status of the City or the type of operations conducted by the City,or (b)is required by,or better complies with, tile provisions of paragraph (d)(2)of the Rule;(ii)this section as so amended or supplemented would have complied with the requirements of paragraph (d)(2)of the Rule at the time of the primary offering of the Bonds,giving effect to any change in circumstances applicable under clause (i)(a)and assuming that tile Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering;and (iii)such amendment or supplement does not materially impair the I interests of the Owners under the Rule.This section is entered into to comply with,and should be construed so as to satisfy the requirements of,paragraph (d)(2)of the Rule. Section 13.All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved February 2,2004. Attest: