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241 final project has achieved a reduction in energy consumption in publicly- 242 owned buildings by at least 20 %. 243 (c) The Finance Director shall ensure that all contracts let for projects financed with 244 direct pay bonds shall comply with the federal Davis -Bacon prevailing wage rules. 245 6. Taxable Governmental Bonds. 246 Most of the provisions of these policies and procedures are not applicable to governmental bonds the 247 interest on which is includable in gross income for federal income tax purposes. However, if an issue 248 of taxable governmental bonds is later refunded with the proceeds of an issue of tax - exempt 249 governmental refunding bonds, then the uses of the proceeds of the taxable governmental bonds and the 250 uses of the facilities financed with the proceeds of the taxable governmental bonds will be relevant to 251 the tax - exempt status of the governmental refunding bonds. Therefore, if there is any reasonable 252 possibility that an issue of taxable governmental bonds may be refunded, in whole or in part, with the 253 proceeds of an issue of tax - exempt governmental bonds then, for purposes of these policies and 254 procedures, the Finance Director shall treat the issue of taxable governmental bonds as if such issue 255 were an issue of tax - exempt governmental bonds and shall carry out and comply with the requirements 256 of these policies and procedures with respect to such taxable governmental bonds. The Finance 257 Director shall seek the advice of Bond Counsel as to whether there is any reasonable possibility of 258 issuing tax - exempt governmental bonds to refund an issue of taxable governmental bonds. 259 7. Qualified 501(c)(3) Bonds. 260 If the City issues bonds to finance a facility to be owned by the City but which may be used, in whole 261 or in substantial part, by a nongovernmental organization that is exempt from federal income taxation 262 under Section 501(a) of the Code as a result of the application of Section 501(c)(3) of the Code (a 263 "501(c)(3) Organization "), the City may elect to issue the bonds as "qualified 501(c)(3) bonds" the 264 interest on which is exempt from federal income taxation under Sections 103 and 145 of the Code and 265 applicable Treasury Regulations. Although such qualified 501(c)(3) bonds are not governmental bonds, 266 at the election of the Finance Director, for purposes of these policies and procedures, the Finance 267 Director may treat such issue of qualified 501(c)(3) bonds as if such issue were an issue of tax-exempt 268 governmental bonds and shall carry out and comply with the requirements of these policies and 269 procedures with respect to such qualified 501(c)(3) bonds. Alternatively, in cases where compliance 270 activities are reasonably within the control of the relevant 501(c)(3) Organization, the Finance Director 271 may determine that all or some portion of the compliance responsibilities described herein shall be 272 assigned to organization. 273 8. Conduit Bonds. 274 The provisions of these policies and procedures are primarily intended to be applicable to 275 governmental bonds. However, the City may from time to time issue qualified 501(c)(3) bonds or 276 other qualified private activity bonds that are not governmental bonds and loan the proceeds thereof to a 277 nongovernmental organization that is the obligor on such conduit bonds. Although such conduit bonds 278 are not governmental bonds, at the election of the Finance Director, for purposes of these policies and 279 procedures, the Finance Director may treat such issue of conduit bonds as if such issue were an issue of Page 11 of 12