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- 2 - and caused a Preliminary Official Statement of the City relating to the Bonds, dated December 28, 1990 (the "Preliminary Official Statement"), a Detailed Notice of Sale of the Bonds, dated December 28, 1990 (the "Detailed Notice of Sale"), and an Official Proposal Form relating to the Bonds (the "Proposal Form"), to be prepared and distributed to prospective purchasers of the Bonds. (d) The Summary Notice of Sale and the Detailed Notice of Sale provided that sealed proposals for the purchase of the Bonds would be received by or on behalf of the City, at the office of the City Manager until Twelve O'Clock Noon, Eastern Standard Time, on Tuesday, January 8, 1991, at which time and place all proposals would be publicly opened. (e) Pursuant to the Detailed Notice of Sale, four (4) proposals for the purchase of the Bonds were received by the City, each accompanied by a certified or bank cashier's check in the amount of $900,000 payable to the order of the City of Portsmouth, Virginia. The names of the bidders submitting each such proposal, the purchase price for the Bonds specified in each such proposal and the true interest cost to the City resulting from each such proposal are as follows: Name of Bidder Purchase Price Specified True Interest Cost Merrill Lynch & Co. Chase Securities, Inc. Goldman, Sachs & Co. Prudential-Bache Securities, Inc, $ 45,000,000.00 45,001,124.05 45,000,000.00 45,000,000.00 6.86778% 6.90417 6.92557 7.10447 (f) After due consideration of all such proposals, this Council hereby finds and determines that Ia) Merrill Lynch & Co. (the "Purchaser") is a responsible bidder, (b) of the proposals for the purchase of the Bonds received by the City, the proposal of the Purchaser (the "Proposal") is the proposal to purchase the Bonds at the lowest true interest cost to the City, determined by doubling the semiannual interest rate (compounded semiannually) necessary to discount the principal and interes~ payments, excluding interest accrued to the delivery date, on the Bonds from the dates of payment thereof to the date of the Bonds (January 1, 1991) and to the price bid, (c) the Proposal is the best proposal for the purchase of the Bonds received by the City, is in accordance with the Detailed Notice of Sale, and should be accepted. SECTION 2. Acceptance of Proposal. The Proposal, being a proposal to purchase the Bonds at the price of Forty-Five Million Dollars ($45,000,000), plus accrued interest from the date of the Bonds to the date of delivery thereof by the City and payment therefor by the Purchaser, with the Bonds to bear