10-106.   Sale of bonds; public sale, when; notice;bids.(a) Municipal bonds shall be sold at public notice sale as follows: Theofficers having charge of the sale of the bonds shall publish a notice of thesale one time in a newspaper having general circulation in the county where thebonds are issued and in the Kansas register. Such notices shall be publishednot less than six days nor more than 30 days before the sale and shall containthe following information: (1) Except as provided by subsection (b), the date,time and place at which a public notice auction will be held on such terms andconditions as shall be provided by the municipality or at which bids will bereceived and considered for the sale of the bonds for cash at such price as themunicipality may accept; (2) the date of issue, total par value anddenomination of the bonds being sold; (3) the dates and amounts of maturitiesof the bond issues; (4) the dates on which interest on the bonds shall becomedue and payable; (5) the place or places where and the approximate date onwhich the bonds being sold will be delivered to the purchaser; (6) a statementthat a good faith deposit in the form of a certified or cashier's check orsurety bond in the amount of 2% of the total par value of the bonds being soldshall be furnished at or prior to the time of sale by each bidder; (7) astatement disclosing whether or not the purchaser of the bonds will be requiredto pay for the printing thereof and whether or not and to what extent thepurchaser of the bonds will be required to pay the expense of legal servicesrendered to the municipality in connection with the issuance of the bondsincluding the fees of recognized bond counsel for an opinion as to legality ofissuance; (8) the assessed valuation of the municipality; (9) that bidders maybe required to be qualified in a manner established by the municipality beforesubmitting a bid; and (10) the total bonded indebtedness of the municipality asof the date on which the bonds being sold are dated including the bondssubmitted for bid. The rate of interest may be omitted in advertising and thebidders requested to specify the lowest interest rate or rates on the bonds atwhich they will pay the purchase price.

      (b)   If sold at public notice sale, purchasers shall submit their bidsin writing, sealed or sent by telefacsimile or other electronic transmission,as set forth in the notice of sale, for all or any part of the bonds. In caseany purchaser, whose bid is accepted, fails to carry out the contract, thedeposit shall be forfeited to the municipality issuing the bonds. Bids shall bedisclosed publicly and tabulated or compared only at the time and placespecified in the notice. At the time and place specified, the bonds shall besold to the highest and best bidder or bidders, and the bonds may be allottedamong the bidders, however, any or all bids may be rejected. No contract forthe sale of the bonds shall be made except on bids submitted as provided inthis section. No bonds shall be delivered to any purchaser until the amount ofthe bid is placed in the hands of the officer in charge of the sale. Theprovisions of this section relating to public notice sale of bonds shall notapply to bonds: (1) Secured solely and only by revenues,(2) bonds sold, pursuant to written agreement, to the government of theUnited States of America or any bureau, department, instrumentality or agencythereof, (3) bonds issued pursuant to K.S.A. 10-427 et seq., andamendments thereto, (4) all bonds of the same series or which areissued simultaneously with such bonds, and (5) bond saleswhere the total amount of the issue does not exceed$2,000,000. In such cases, the bonds may be sold at public notice orprivate sale as the officers having charge of the sale of such bonds determine.If bonds under clause (5) are to be sold at private sale, the officershavingcharge of the sale of such bonds shall publish in advance of the sale a noticeof intent to seek private placement of such bonds in a newspaper havinggeneral circulation in the county where the bonds are issued and in the Kansasregister. Such notice shall state the maximum aggregate principal amount of thebonds and shall indicate that the proposed sale is in all respects subject tothe subsequent approval of an appropriate bond purchase agreement and anordinance for the issuance of bonds. The practice of providingmore than one issue within a twelve-month period for any one project isprohibited unless the project engineer or architect certifies that it isnecessary to do so for the orderly construction progress of the project.

      (c)   As an alternative to providing notice of the date, timeand place of public notice auction or receipt of bids provided by subsection(a)(1), the officers having charge of a bond sale may establish a time periodof not less than seven nor more than 30 days during which such bonds would besold. Notice of such sale period shall be published one time in a newspaperhaving general circulation in the county where the bonds are issued and in theKansas register and shall be published not less than six days nor more than 30days before the beginning date of the sale period. The notice shall contain theinformation specified in subsection (a) except that in place of the time anddate of sale, the notice shall specify the time period during which the bondswould be sold and the manner in which persons interested in submitting a bidmay register for notice of the bond sale. At least three business days prior tothe time and date of the bond sale, the officers having charge of the saleshall give notice to all persons having registered for notice of the bond sale,and bids shall be submitted and received and the sale made in the mannerprovided in subsection (a).

      History:   R.S. 1923, § 10-106;L. 1925, ch. 93, § 1;L. 1965, ch. 84, § 1;L. 1972, ch. 37, § 1;L. 1981, ch. 56, § 2;L. 1981, ch. 324, § 8;L. 1982, ch. 54, § 2;L. 1983, ch. 48, § 2;L. 1988, ch. 65, § 1;L. 1989, ch. 51, § 1;L. 1993, ch. 67, § 1;L. 1996, ch. 89, § 1;L. 2000, ch. 9, § 1;L. 2001, ch. 212, § 3;L. 2008, ch. 111, § 1; July 1.