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(a) Obligations Relating to New Facilities. The City may agree under a contract <br />containing a Contract Resource Obligation that all payments in respect of that Contract Resource <br />Obligation (including payments prior to the time that water, sanitary sewer, and storm and surface <br />water drainage service is placed in service or connected, and during any suspension or after <br />termination of supply or service) shall be deemed a Costs of Maintenance and Operations, so long as <br />the payments required to be made under the Contract Resource Obligation are not subject to <br />acceleration and the following additional requirements are met at the time such a Contract Resource <br />Obligation is entered into: <br />(1) No event of default has occurred and is continuing under the terms of any <br />debt obligation of the City in respect of the Water & Sewer System; and <br />(2) The City has obtained a certificate of an Independent Consultant stating that <br />in such consultant's professional opinion. (i) the payments to be made by the City in connection with <br />the Contract Resource Obligation are reasonable for the facilities, commodities, or services <br />provided; (ii) the source of any new supply, and any facilities to be constructed to provide the supply <br />or transmission, are sound from a supply or planning standpoint, are technically and economically <br />feasible in accordance with prudent utility practice, and are likely to provide service no later than a <br />date set forth in the certification; and (iii) the Net Revenue of the Water & Sewer System will be <br />sufficient to satisfy the Rate Covenant for each of the five calendar years following the calendar year <br />in which the Contract Resource Obligation is incurred, where the calculation of Net Revenue (A) <br />takes into account the adjustments permitted in connection with a certificate delivered to satisfy the <br />Parity Conditions, and (B) adjusts the Costs of Maintenance and Operation by such Independent <br />Consultant's estimate of the payments to be made in accordance with the Contract Resource <br />Obligation. <br />(b) Obligations Relating to Existing Facilities. Nothing in this section shall prevent the <br />City from entering into agreements relating to obtaining or acquiring facilities, commodities, or <br />services relating to the Water & Sewer System from existing facilities or sources of supply and fi^om <br />treating those payments as a Costs of Maintenance and Operations. <br />(c) Subordinate Obli a�- bons. Nothing in this section shall prevent the City from entering <br />into agreements for facilities, commodities, or services relating to the Water &Sewer Systems that <br />are to be constructed or obtained in the future and fi^om agreeing to make payments with respect <br />thereto that constitute Subordinate Obligations. <br />Section 20. Tax Covenants. <br />(a) Tax -Exempt Bonds, The Sale Terms and other documents executed in conjunction <br />with the sale of the Bonds (or a Series of the Bonds) may include such additional terms and <br />covenants relating to federal tax matters as the Finance Director deems necessary or appropriate, <br />including the following. <br />(1) Preservation of Tax Exemption for Interest on Tax -Exempt Bonds, The City <br />covenants that if it determines to sell the Bonds (or any series of the Bonds) as Tax -Exempt Bonds, it <br />will take all actions necessary to prevent interest on those Bonds from being included in gross <br />income for federal income tax purposes, and it will neither take any action nor make or permit any <br />use of proceeds of those Tax -Exempt Bonds or other funds of the City treated as proceeds of those <br />Tax -Exempt Bonds that will cause interest on those Tax -Exempt Bonds to be included in gross <br />income for federal income tax purposes. The City also covenants that it will, to the extent the <br />arbitrage rebate requirements of Section 148 of the Code are applicable to the Tax -Exempt Bonds (or <br />