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(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 />a series thereof), take all actions necessary to comply (or to be treated as having complied) with those <br />requirements. <br />(2) Post -Issuance Compliance with Federal Tax -Exempt Bond Requirements. <br />The Finance Director is authorized and directed to review and update the City's written procedures to <br />facilitate compliance by the City with the covenants in this ordinance and the applicable <br />requirements of the Code that must be satisfied after the Issue Date to prevent interest on the Tax - <br />Exempt Bonds from being included in gross income for federal tax purposes. <br />(b) Taxable Bonds. Notwithstanding the foregoing, nothing herein prevents the Finance <br />Director from determining that the Bonds, or a series of the Bonds, is to be issued as Taxable Bonds. <br />Section 15. Sale and Delivery of the Bonds. <br />(a) Manner of Sale of Bonds; Delivery of Bonds. The Designated Representative is <br />authorized to sell each Series of the Bonds by negotiated sale, private placement, or by competitive <br />sale in accordance with a notice of sale consistent with this ordinance, based on the assessment of the <br />Designated Representative of market conditions, in consultation with appropriate City officials and <br />staff, Bond Counsel and other advisors. In determining the method of sale of a Series and accepting <br />the Sale Terms, the Designated Representative shall take into account those factors that, in the <br />judgment of the Designated Representative, may be expected to result in the lowest true interest cost <br />to the City. <br />(b) Procedure for Negotiated Sale or Private Placement. If the designated <br />Representative determines that a Series of the Bonds is to be sold by negotiated sale or private <br />placement, the Designated Representative shall select one or more Purchasers with which to <br />negotiate such sale. The Bond Purchase Agreement for such Series shall set forth the Sale Terms. <br />The Designated Representative is authorized to execute the Bond Purchase Agreement on behalf of <br />the City, so long as the terms provided therein are consistent with the terms of this ordinance. <br />(c) Procedure for Competitive Sale. If the Designated Representative determines that a <br />Series of the Bonds is to be sold by competitive sale, the Designated Representative shall cause the <br />preparation of an official notice of bond sale setting forth parameters for the Sale Terms and any <br />other bid parameters that the Designated Representative deems appropriate consistent with this <br />ordinance. Bids for the purchase of the Series shall be received at such time or place and by such <br />means as the Designated Representative directs. On the date and time established for the receipt of <br />bids, the Designated Representative (or the designee of the Designated Representative) shall open <br />bids and shall cause the bids to be mathematically verified. The Designated Representative is <br />authorized to award, on behalf of the City, the winning bid and accept the winning bidder's offer to <br />purchase the Series, with such adjustments to the aggregate principal amount and principal amount <br />per maturity as the Designated Representative deems appropriate, consistent with the terms of this <br />ordinance. The Designated Representative may reject any or all bids submitted and may waive any <br />formality or irregularity in any bid or in the bidding process if the Designated Representative deems <br />12 <br />