A resolution supplementing and amending a resolution of The Metropolitan Government of Nashville and Davidson County and awarding the sale of the Metropolitan Government’s General Obligation Multi-Purpose Bonds, Series 2004.

WHEREAS, on June 1, 2004, the Metropolitan County Council (the "Council") of The Metropolitan Government of Nashville and Davidson County (the "Metropolitan Government"), adopted Resolution No. 2004-326 (the "Bond Resolution"), authorizing the issuance of up to $75,000,000 of general obligation multi-purpose improvement bonds (the “Bonds”) to finance the retirement of a portion of the Metropolitan Government’s General Obligation Commercial Paper; and;

WHEREAS, the Metropolitan Government has published a notice of sale of $68,915,000 of the Bonds (the "Notice of Sale") in accordance with Tennessee law, bids have been received for the Bonds and it is in the best interest of the Metropolitan Government to award the sale of the Bonds to the lowest bidder; and

WHEREAS, it has been determined that it is advantageous to the Metropolitan Government to make certain changes to the terms of the Bonds as permitted by the Bond Resolution in order to sell the Bonds on terms most favorable to the Metropolitan Government;

NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE METROPOLITAN COUNTY COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

1. Receipt of Bids. The Metropolitan Government received the following bids for the Bonds:

NAME OF BIDDER                     TRUE INTEREST RATE
Lehman Brothers                           4.573563%
Citigroup Global Markets Inc.           4.575828
Morgan Stanley                             4.578179
Merrill Lynch & Co.                         4.580672
J.P. Morgan Securities, Inc.             4.583025
Banc of America Securities LLC        4.600663
RBC Dain Rauscher, Inc.                 4.609292
Morgan Keegan & Company, Inc.      4.612180
Stephens Inc.                               4.624883
Raymond James & Associates, Inc.   4.636631
Prager, Sealy & Co., LLC                 4.647649

Successful Bidder. The Council has reviewed all bids for the Bonds and the bid of Lehman Brothers (the "Purchaser") is the bid that results in the lowest true interest cost to the Metropolitan Government, and in all respects complies with the Notice of Sale.

2. Award of Bonds. It is hereby ordered that the bid of the Purchaser attached hereto be and the same is hereby accepted, and the Council hereby awards and sells to the Purchaser the Bonds in the aggregate principal amount of $65,755,000, at a purchase price of $68,505,846.20, representing the principal amount of the Bonds, plus net original issue premium of $2,921,809.20, less underwriter’s discount of $170,963.00.

3. Terms of Bonds. The Bonds shall have the terms set forth on Schedule A attached hereto.

4. Amendments. Section 3.3(a) of the Bond Resolution and the form of the bond attached thereto are hereby amended to conform to the terms of the Bonds set forth on Schedule A attached hereto. Otherwise, the Bonds shall be issued in accordance with the Bond Resolution.

5. Good Faith Deposit. The Director of Finance of the Metropolitan Government is hereby authorized and directed to accept as the good faith deposit for the Bonds awarded hereunder the Good Faith Deposit Financial Surety Bond issued by Financial Security Assurance Inc.

6. Conflicting Resolutions. All other resolutions and orders, or parts thereof, in conflict with the provisions of this resolution are, to the extent of such conflict, hereby repealed.

7. Effectiveness. This resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Brenda Gilmore

LEGISLATIVE HISTORY
Referred:	Budget & Finance Committee
Introduced:	June 15, 2004
Substitute Introduced:	June 15, 2004
Adopted:	June 15, 2004
Approved:	June 16, 2004
By: