ITEM 15 ATTACHMENT 1 - Laserfiche WebLink

In a competitive sale, the City's bonds shall be awarded to the bidder providing the lowest true interest cost as long as the bid adheres to the requirements set forth in the official notice of sale. Conditions under which a competitive sale would be preferred are as follows: • Bond prices are stable and/or demand is strong. • Market timing and interest rate sensitivity are not critical to the pricing. There are no complex explanations required during marketing regarding issuer's projects, media coverage, political structure, political support, and funding or credit quality. • The bond type and structure are conventional. • Bond insurance is included or pre -qualified (available). • Manageable transaction size. • The City (or a City enterprise) has strong credit ratings. • The City (or a City enterprise) is well known to investors. Negotiated Sale The City recognizes that some securities are best sold through negotiation. Conditions under which a negotiated sale would be preferred are as follows: • Interest rates are volatile. • Demand is weak or supply of competing bonds is high. • Market timing is important, such as for refunding's. • Issuer has lower or weakening credit rating. • Issuer is not well known to investors. • Sale and marketing of the bonds will require complex explanations about the issuer's projects, media coverage, political structure, political support, funding, or credit quality. • The bond type and/or structural features are non-standard, such as for a forward delivery bond sale, issuance of variable rate bonds, or where there is the use of derivative products. • Bond insurance is not available or not offered. • Early structuring, investor outreach and other market participation by underwriters are desired. • The par amount for the transaction is significantly larger than normal. • Demand for the bonds by retail investors is expected to be high. • Participation from DBE firms is required or desired. Private Placement From time to time the City may elect to privately place its debt. Such placement shall be considered if this method is demonstrated to result in a cost savings to the City or other benefits relative to other methods of debt issuance. Derivative Products Because of their complexity, unless otherwise amended, Derivative Products such as Interest Rate Swaps, Inverse Floaters, and other hybrid securities are prohibited from the City of Pleasanton's Debt Management Policy. 10. DEBT ISSUANCE PRACTICES The City shall have the responsibility to analyze outstanding bond issues for refunding opportunities that may be presented by underwriting and/or financial advisory firms. The City will consider the following issues when analyzing possible refunding opportunities: A. Debt Service Savings 235