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<br />BIDDING CONDITIONS
<br />Address of Bids
<br />Bids should be in sealed envelopes plainly marked "Bid for Bonds" addressed to the the
<br />Mayor, City of La Porte, 604 W. Fairmont Parkway, La Porte, Texas 77571.
<br />Delivery of Bids
<br />Bids should be mailed or delivered so that they arrive not later than 7:30 p.m., CDST,
<br />September 24, 1985. For convenience of bidders, bids may be delivered to Moroney,
<br />Beissner b Co., Inc., Suite 1865 Post Oak Central, 2000 Post Oak Boulevard, Houston,
<br />Texas 7'7056, agent for the City; and, if delivered not later than 5:00 p.m., CDST,
<br />September 24, 1985, will be deemed to have been delivered to the City in accordance
<br />with the terms of this "Official Notice of Sale." Bids so delivered will not be
<br />opened except by the City Council of the City of La Porte and will not be opened prior
<br />to 7:30 p.m., CDST, September 24, 1985.
<br />No Bid From the Financial Advisor
<br />Under the terms of the contract with Moroney, Beissner ~ Co., Inc., Financial Advisors
<br />to the City, it is agreed and understood that Moroney, Beissner s Co., Inc. shall
<br />not be permitted to purchase any Bonds from the City nor have any interest directly or
<br />indirectly, in the original purchase and sale of the Bonds, except as Agent for the
<br />City. As Financial Advisors to the City, Moroney, Beissner s Co., Inc. will be paid a
<br />fee based upon a percentage of the principal amount of bonds actually sold and
<br />delivered, which fee is contingent upon such sale and delivery.
<br />Type of Hids and Interest Rates
<br />All bids must be submitted on the "Official Bid Form" enclosed herewith without
<br />change. The Bonds will be sold in two separate blocks, $5,000,000 General Obligation
<br />Bonds and $6,000,000 waterworks and Sewer System Revenue Bonds, at a price of not less
<br />than par value for each separate block of bonds, plus accrued interest from the date
<br />of the Bonds to date of delivery. Bidders are requested to specify the rate or rates
<br />of interest that the Bonds will bear, however, the net effective interest rate on the
<br />Bonds calculated pursuant to Article 717k-2, Vernon's Annotated Texas Statutes
<br />(V.A.T.S.), as amended, shall not exceed 158. There is no limit on the number of
<br />interest rates that may be named, however, all Bonds maturing on the same date must
<br />bear interest at one and the same rate. Interest rates must be in multiples of 1/8 or
<br />1/20 of 18. The spread between the highest and lowest interest rates named may not
<br />exceed 28 in rate. Bids providing for zero or supplemental interest rates will not be
<br />considered.
<br />Award of Bonds
<br />For the purpose of awarding the Bonds, the interest cost of each bid will be computed
<br />by determining, at the interest rate or rates specified therein, the total dollar
<br />amount of all interest on the Bonds from the date of the Bonds to their respective
<br />maturities, and deducting therefrom the premium bid, if any. In the event of an error
<br />in interest cost calculations, the interest rates named in the "Official Bid Form"
<br />will govern. The City agrees to either award the Bonds on the sale date to the bidder
<br />whose bid on the above computation produces the lowest interest cost to the City and
<br />is in strict accordance with the bidding conditions of this "Official Notice of Sale"
<br />or reject all bids and readvertise the Bonds for competitive bids. No award will be
<br />made to any bidder bidding on terms and conditions not in strict conformity with this
<br />"Official Notice of Sale."
<br />Good Faith Deposit
<br />Each bid must be secured by a Good Faith Deposit in the form of a Bank Certified or
<br />Bank Cashier's Check in the amount of $100,000 accompanying bids for the $5,000,000
<br />General Obligation Bonds, and in the amount of $120,000 accompanying bids for the
<br />$6,000,000 waterworks and Sewer System Revenue Bonds, payable to the City of La Porte.
<br />The Good Faith Deposit may accompany the "Official Bid Form" or it may be submitted
<br />separately; if submitted separately, it shall be made available to the payee prior to
<br />the opening of the bids and shall be accompanied by instructions of the bank on which
<br />drawn, which authorizes its use as a Good Faith Deposit by the successful bidder (the
<br />"Purchaser") who shall be named in such instructions. The check of the Purchaser will
<br />be retained by the City to assure performance of the contract on the part of the
<br />Purchaser. In the event the Purchaser should fail or refuse to take up and pay for the
<br />Bonds in accordance with his bid, then said check will be cashed and accepted by the
<br />City as full and complete liquidated damages. Otherwise, the Good Faith Check will be
<br />returned to the Purchaser upon the delivery of and payment for the Bonds. No interest
<br />will be paid by the City on the Good Faith Deposit. The checks of the unsuccessful
<br />bidders will be returned after award of the Bonds is made.
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