§ 2-513. Bid requirements.

(a) When purchasing or selling securities, the city shall select the security which provides the highest rate of return within the parameters of this policy and which meets the current objectives and needs of the city's portfolio. Selections shall be made utilizing one (1) of the following methods:

(1) Competitive bids, wherein the city solicits proposals from a minimum of three (3) firms.

(2) Comparison to the current market price as indicated by one (1) of the market pricing resources available to the city. These resources include, but are not limited to:

a. Bloomberg Information Delivery System.

b. Wall Street Journal, or a comparable nationally recognized financial publication providing daily market pricing.

c. Daily market pricing provided by the city's custody agent or their correspondent institution.

(b) In most situations, the city shall utilize the competitive bid process to select the securities to be purchased or sold. Selection by comparison to a current market price, as indicated in paragraph (a)(2), shall be utilized when in the judgment of the city manager, competitive bidding would inhibit the selection process. Examples of when this might occur are:

(1) When a dealer brings to the city an unsolicited swap or proposal.

(2) When no active market exists for the issue being traded due to the age or depth of the issue.

(3) When time constraints due to unusual circumstances preclude use of the bidding process.

(4) When a security is unique to a single dealer.

(5) When the transaction involves new issues or issues in the "when issued" market.

(c) When using the competitive bid process, all bids shall become part of the record of the specific security involved. When selection is made based on comparison to current market price, the following information shall become part of the record of the security involved:

(1) Reason for use of this method.

(2) Source of the current market value used.

(3) Price and/or interest rate quoted by said source.

(Ord. No. 95-44, § 1, 12-19-95)