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— t seeared-tn-sy atem a3or3 * Iivefeb6 iatoro3t ratan FFlgker fateFeJt eoata than CO'3 * - No truatee-fectutfad tt -.• _ __. _ C as ally iuc�lude4 * Debt 1:m:.,...._ __ly * Market eo-.o.._...about defaul... * 6sJa-3ssurs-than CO Bond 6. METHOD OF SALE The City will determine, on a case-by-case basis, whether to sell its bonds competitively or through negotiation. A. Competitive Sale 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. B. 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.