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jmf 1/29/18 <br />a) during a high Interest rate environment; <br />b) If the source for repayment fluctuates, and is anticipated to move in the some direction <br />as market -generated variable interest rates, or the dedication of revenues allows <br />capacity for variability; and <br />c) if financing structure and budgetary safeguards are In place to prevent adverse impacts <br />from interest rate shifts <br />Moreover and In accordance with rating agency guidelines, the percentage of variable rate debt <br />outstanding shall not exceed 20% of the City's total outstanding debt. <br />QEBT ISSUANCE <br />service Providers <br />During the course of a debt issuance, the City must select several professional services <br />providers. The Santa Ana Issuers will utilize the services of independent financial/municipal <br />advisors, underwriters, and pertinent legal counsel on all debt financings as well as other <br />parties depending. on the type of financing. Additionally, the City will require that all providers <br />have the highest ethical standards as it relates to their performance with no existing material or <br />egregious legal grievances against them or pending Investigations for the same. The City will <br />require full disclosure of any history of grievances or legal proceedings against providers <br />The Santa Ana Issuers will strive to select service providers as necessary through a competitive <br />bidding process. However, when appropriate, a sole -source selection may be allowed (I.e., <br />timing of issuance, product & financing packaging). The overall goal is to achieve an appropriate <br />balance between service and cost. <br />Methods of Sole <br />The Director of Finance shall also be responsible for determining the appropriate manner in <br />which to offer any debt to investors, these include competitive bid, negotiated sale and/or <br />private placement, which will be considered on a case-by-case basis. The preference will be <br />given to competitive sale method, In a competitive sale, the secur€ties shall be awarded to the <br />bidder providing the lowest interest cost as long as the bid adheres to the requirements set <br />forth in the governing bond documents. In a negotiated sale, the City shalt assess the following <br />circumstances: <br />a) size of the issue which may limit the number of potential bidders <br />b) If market volatility Is such that flexibility In timing the sale in changing Interest rate <br />environments is most beneficial for the City <br />Debt Refunding <br />The Finance Department shall also have the responsibility to analyze outstanding bond issues <br />for refunding opportunities that may be presented by underwriting end/or financlal/municipal <br />advisory firms. <br />Resolution No. 2018-009 <br />Page 7 of 9 <br />