Resolution No. 4539 - Laserfiche WebLink

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(except for certain taxes on corporations). The Bonds are "private activity bonds" but are "qualified bonds" under Section 141(e) of the Internal Revenue Code of 1986, as amended (the "Code"). The interest on the Bonds is a preference item for purposes of computing the individual and corporate alternative minimum taxes under Section 55 of the Code. In the opinion of Bond Counsel, the interest on the Bonds is exempt from personal income taxation by the State of Oregon under present state law. Bond Counsel expresses no opinion regarding other federal or state tax consequences arising with respect to the Bonds. NOT BANK QUALIFIED: The City has not designated the Bonds as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Code. CERTIFICATE REGARDING INITIAL OFFERING PRICE: To provide the City with information required to enable it to comply with certain conditions of the Internal Revenue Code of 1986, as amended, relating to the exclusion of the interest on the Bonds from the gross income of their owners, the successful bidder will be required to complete, execute and deliver to Bond Counsel (on or before three business days prior to the date of delivery of the Bonds) a certification provided by Bond Counsel as to the "issue price" of each maturity of the Bonds. In the event the successful bidder has (1) purchased the bonds for its own portfolio without intention to resell the Bonds, or (2) made a bona fide private placement of the Bonds, such certificate may be modified in a manner provided by Bond Counsel. Each bidder, by submitting its bid, agrees to complete, execute and deliver such a certificate, if its bid is accepted by the City. Failure to honor this agreement may result in the cancellation of the sale and the forfeiture of the successful bidder's good faith deposit. FORM OF BID: Bids must be for the entire amount of the Bonds, and for not less than ninety-nine percent (99%) of their principal amount, plus accrued interest to the date of delivery. Each bid, unless telecopied, must be enclosed in a sealed envelope addressed to the City, which is clearly marked as a proposal for the Bonds. The City will accept telecopied bids provided they are received by the City in care of its bond counsel Preston Gates & Ellis LLP at (503) 248-9085 (fax) on or before the sale date and time set forth in this notice. The City requests that any firm planning to telecopy a bid contact the City's financial advisor at least one business day prior to the sale. Bidders electing to telecopy bids bear all risk of failure of the bid to be received by the City in a timely manner, and any inaccuracies that result from lack of clarity in the telecopied bid which the City receives. Bids may be submitted on the bid form included in the preliminary official statement. BEST BID: The Bonds will be awarded to the responsible bidder whose proposal will result in the lowest true interest cost to the City. True interest cost will be determined by doubling the semiannual interest rate necessary to discount the debt service to October 1, 1997, and the price bid for the Bonds. Each bidder is requested to supply the total interest cost and the Page 4 - Exhibit A(l) J:\RDR\EUGENE.Cfl\ADV-REF.97\RES.DOC