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Reso 0015-02/1956 RESOLUTION NO. RESOLUTION OF THE BOARD OF DIRECTORS OF SAN MARCOS COUNTY WATER DISTRICT DECLARING ITS INTENTION TO SELL BONDS OF SAID DISTRICT IN THE AMOUNT OF $998,000 AND FIXING TIME AND PLACE FOR TAKING BIDS AND DIRECTING PUBLICA- TION OF NOTICE INVITING BIDS. WHEREAS, this Board of Directors deems it proper and the necessity therefor appears that bids be invited for the entire issue of $998,000 bonds of SAN MARCOS COUNTY WATER DISTRICT and that if bids are satisfactory said bonds be sold in the manner and at the time and place hereinafter set forth; NOW, THEREFORE, the Board of Directors of SAN MARCOS COUNTY WATER DISTRICT does hereby RESOLVE, DETERMINE AND ORDER as follows: Section 1. That sealed proposals for the pur- chase of all of said $998,000 of bonds be received by this Board of Directors at its meeting place Richmar School Encinitas Road, San Marcos, California up to the hour of 7:30 o'clock P.M., on February 23, 1956. Section 2. That the Secretary of this Board is hereby authorized and directed to publish notice invit- ing such sealed proposals once in THE DAILY TIMES ADVOCATE a newspaper of general circulation, circulated within said district, said publication to be at least six (6) days prior to the date of opening bids stated in said notice. Section 3. That the Secretary of this Board is hereby authorized and directed to cause to be furnished to prospective bidders copies of the notice inviting pro- posals and of an official statement relating to the properties, operations and finances of said district, but failure in whole or in part to comply with this section shall not in any manner affect the validity of the sale. Section 4. That said notice shall be sub- stantially as follows: NOTICE INVITING BIDS ON $998,000 GENERAL OBLIGATION BONDS SAN MARCOS COUNTY WATER DISTRICT SAN DIEGO COUNTY, CALIFORNIA NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $998,000 par value general obligation bonds of SAN MARCOS COUNTY WATER DISTRICT of San Diego County, California, will be received by the Board of Directors of said district at the place and up to the time below specified: TIME: Thursday, February 23, 1956, at 7:30 o'clock P.M. PLACE: RICH-MAR SCRODL, Encinitas Road, San Marcos, California MAILED BIDS: Mailed bids should be addressed c/o Anna D Charlton Secretary San Marcos County Water District Box 187, San Marcos, California 0PENING OF BIDS: The bids will be opened at the meeting of said Board of Direotors to be held February 1956, at 7:30 o'clock P.M., at the Rich-Mar School, Encinitas Road, San Marcos, California. THE BONDS: $ 998,000 consisting of 998 bonds, numbered I to 998 , both inclusive, of the denomina- tion of $1,000 each, all dated January l, 1956, to mature in consecutive numerical order on January 1 in the amounts for each of the several years as follows: AMOUNTS AMOUNTS YEARS INCLUSIVE PER YEAR YEARS INCLUSIVE PER YEAR 1961 to 1963 $ 5,000 1984 to 1986 $35,000 1964 to 1967 10,000 1987 to 1989 40,000 1968 to 1971 15,000 1990 to 1991 45,000 1972 to 1975 20,000 1992 to 1993 50,000 1976 to 1979 25,000 1994 to 1995 55,000 1980 to 1983 30,000 1996 58,000 PAYMENTS: Said bonds and the interest thereon are payable in lawful money of the United States of America at the Branch Office of Bank of America National Trust and Savings Association, Eccondido, California, or at the Main Office of Bank of America National Trust and Savings Association in Los Angeles, California, or at any fiscal agency of the district In Chicago, Illinois, or in New York, New York, at the option of the holder. CABLE: The bonds maturing on or prior to January 1, 1966, shall not be subject to call or redemp- tion prior to maturity. The bonds maturing on or after January 1, 1967, or any of them, may be called before maturity and redeemed at the option of the Board of Directors of the district on January 1, 1966, or on any interest payment date thereafter prior to maturity. All or any of the bonds subject to call may be called for redemption at ant one time. If less than all of the bonds are redeemed at any one time, such bonds shall be redeemed only in inverse order of maturity and number beginning with the highest numbered bond. Bons called prior to maturity shall be redeemed at a redemption price equel to the principal amout thereof and accrued interest to the redemption date plus the following redemption premiums if redeemed at the following times: REDEMPTION DATES On or after And prior to January 1 January 1 Premium ______________________________________________________________________ 1966 1971 6-1/2% 1971 1976 5% 1976 1981 4% 1981 1986 3% 1986 1991 2% 1991 Maturity 1% PURPOSE OF ISSUE: Said bonds were authorized for the purpose of the acquisition and construction of works and facilities for the production, storage, trans- mission and distribution of water. SECURITY: Said bonds are issued pursuant to the County Water District Law, Division XIl of the Water Code of the State of California. Under said Law if the district has no revenue or if the revenues of the district are or in the Judgment of the Board of Directors are likely to be inadequate go pay the interest on or principal of said bonds as It becomes due an annual tax shall be levied and collected upon all taxable property within said district sufficient to pay the principal of and interest on said bonds as the same falls due. REGISTRATION: The bonds will be coupon bonds registerable only as to both principal and interest. INTEREST: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed 7% per annum, payable annually the first year and semiannually thereafter. TERMS OF SALE Interest Rate: The maximum rate bid may not exceed 7% per annum, payable annually the first year and semiannually thereafter. Each rate bid must be a multiple of 1/4 of 1%. No bond shall bear more than one one interest rate, and all bonds of the same maturity shall bear the same rate. Not more than three interest rates may be bid. The repetition of any rate will not be considered the bidding of an additional rate. The rate on any maturity or group of maturities shall not be more than 1/2 of 1% higher than the interest rate on any other maturity or group of maturities. Award: The bonds shall be sold for cash only. All bids must be for not less than all of the bonds hereby offered for sale and each bid shall state that the bidder, offers par and accrued interest to the date of delivery, the premium, if any, and the interest rate or rates not to exceed those specified herein, at which the bidder offers to buy said bonds. The bonds will be awarded to the bidder whose bid results in the lowest net interest cost to the district. The cost of printing the bonds will be borne by the district. Right of Rejection: The district reserves the right, in its discretion, to reject any and all bids and to the extent permitted by law to waive any irregularity or informality in any bid. Prompt Award: The district will take action awarding the bonds or rejecting all bids not later than twenty-six hours after the expiration of the time heroin prescribed for the receipt of proposals provided, that the award may be made after the expiration of the specified time if the bidder shall not have given to said Board notice in writing of the withdrawal of such proposal. Place of Delivery: Delivery of said bonds will be made to the successful bidder at Jeffties Banknote Company, 117 Winston Street, Los Angeles, California. Prompt Delivery, Cancellation for Late Delivery It is expected that said bonds will be delivered to the successful bidder within thirty days from the date of sale thereof. The successful bidder shall have the right, at his option, to cancel the contract of purchase if the district shall fail to execute the bonds and tender them for delivery within sixty days from the date of the sale thereof, and in such event the successful bidder shall be entitled to the return of the deposit accompanying his bid. Form of Bid: Each bid, together with the bid check, must be in a sealed envelope, addressed to the district with the envelope and bid clearly marked "Proposal for SAN MARCOS COUNTY WATER DISTBICT Bonds". For the lnformation of the district, each bidder shall state in his bid the total net interest cost, in dollars, and the average net interest rate determined thereby. Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of 3% of the principal amount of the bonds, payable to the order of the district must accompany each proposal as a guaranty that the bidder, if successful, will accept and pay for said bonds in accordance with the terms of his bid. The proceeds of the check accompanying any accepted proposal shall be applied on the purchase price or, if such proposal is accepted but not performed, unless such failure of performance shall be caused by any act or omission of the district, shall then be retained by the district. The check accompanying each unaccepted proposal will be returned promptly. Change in Tax Exempt Status: At any time before the bonds are tendered for delivery the successful bidder may disaffirm and withdraw the proposal if the interest received by private holder from bonds of the same type and character shall be declared to be taxable income under present federal income tax laws, either by a ruling of the Bureau of Internal Revenue or by a decision of any federal court, or shall be declared taxable by the terms of any federal income tax law enacted subsequent to the date of this notice. Legal Opinion: The unqualified opinion of 0'Melveny & Myers, attorneys, approving the validity of said bonds will be furnished the successful bidder at or prior to the date of delivery of the bonds, at the expense of the district. No Litigation Certificate: At the time of pay- ment for and delivery of said bonds the district will furnish the successful bidder a certificate that there is no litigation pending affecting the validity of the bonds. INFORMATION AVAILABLE: Requests for information concerning the district should be addressed to Anna D. Charlton Secretary; San Marcos County Water District P.O.Box 187, San Marcos, California GIVEN by order of the Board of Directors of SAN MARCOS COUNTY WATER DISTRICT adopted February 10th, 1956. Secretary, of the Board of Directors of San Marcos County Water District ADOPTED, SIGNED AND APPROVED this 10th day of February, 1956. President of the Board of Directors of San Marcos County Water District ATTEST: Secretary of the Board of Directors of San Marcos County Water District (SEAL) STATE OF CALIFORNIA } } SS COUNTY OF SAN DIEGO } I, Anna D. Charlton , Secretary of the Board of Directors of San Marcos County Water District, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Board of Directors of said district and approved by the President of said district at a special meeting of said Board held on the 10th day of February, 1956, and that it was so adopted by the following vote: AYES: Directors Stanley A. Mahr; John L. Hazeltine; Amos D. Tussell; Boudinot Atterbury; John C.Wells NOES: Directors None ABSENT: Directors None Secretary of San Marcos County ( SEAL ) Water District and of the Board of Directors thereof STATE OF CALIFORNIA } SS COUNTY OF SAN DIEGO } I, Anna D Charlton ,Secretary of the Board of Directors of San Marcos County Water District, DO HEREBY CERTIFY that the above and fore- going is a full, true and correct copy of Resolution No. XV of said Board and that the same has not been amended or repealed. Dated: Febtruary 10th, 1956. Secretary of San Marcos County Water District and of the Board of Directors thereof ( SEAL )