§ 3.11.120. Method of Issuance.

The District 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 District's debt shall be awarded to the bidder providing the lowest true interest cost ("TIC"), as long as the bid adheres to the requirements set forth in the official notice of sale.

B.

Negotiated Sale — The District recognizes that some bond issues are best sold through negotiation with a selected underwriter or team of underwriters. The District has identified the following circumstances below in which this would likely be the case:

a.

Issuance of variable rate or taxable bonds.

b.

Complex structures or credit considerations (such as non-rated bonds), which require a strong pre-marketing effort. Significant par value, which may limit the number of potential bidders, unique/proprietary financing mechanism (such as a financing pool), or specialized knowledge of financing mechanism or process.

c.

Market volatility, such that the District would be better served by flexibility in the timing of its sale, such as in the case of a refunding issue wherein the savings target is sensitive to interest rate fluctuations, or in a changing interest rate environment.

d.

When an underwriter has identified new financing opportunities or presented alternative structures that financially benefit the District.

e.

As a result of an underwriter's familiarity with the project/financing, that enables the District to take advantage of efficiency and timing considerations.

C.

Private Placement — From time to time the District may elect to issue debt on a private placement basis. Such method shall be considered if it is demonstrated to result in cost savings or provide other advantages relative to other methods of debt issuance, or if it is determined that access to the public market is unavailable and timing considerations require that a financing be completed.

( Policy No. 8.5, 10-14-2014 ; Res. No. 2018-8-3 , § 1(Exh. A, § 12), 8-28-2018)