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Reso 0053-04/1958 RESOLO EON NO. 53 RESOLUTION 0F THE BOARD OF DIRECTORS OF SAN MARCOS COUNTY WATER DISTRICT DECLARING ITS INTENTION TO SELL BONDS 0F SAID DISTRICT FOR IMPROVEMENT DISTRICT N0. 1 THEREOF IN THE AMOUNT 0F $200,000 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 $200,000 bonds of San Marcos County Water District for Improvement District No. i thereof, 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, DETER- MINE AND ORDER as follows: Section 1. That sealed proposals for the pur- chase of said $200,000 of bonds be received by this Board of Directors at its meeting place Encinitas Road near Bent Avenue, San Marcos, San Diego County, California, up to the hour of 7:30 o'clock P.M., California Daylight Saving Time, on May 13, 1958. Section 2. That the Secretary of this Board is hereby authorized and directed to publish notice inviting such sealed proposals once in THE DAILY TIMES ADVOCATE, a newspaper of general circulation, circulated within said district, said publication to be.at least ten (10) 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 proposals 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 $200,000 GENERAL OBLIGATION BONDS 0F SAN MARCOS COUNTY WATER DISTRICT FOR IMPROVEMENT DISTRICT N0. 1 NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $200,000 par value general obligation bonds of San Marcos County Water District for Improvement District No. 1 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: Tuesday, May 13, 1958, at 7:30 o'clock P.M., California Daylight Saving Time. PLACE: Office of the district, Encinitas Road near Bent Avenue, San Marcos, San Diego County, California. MAILED BIDS: Mailed bids should be addressed to the district c/o Anna D. Chariron, Secretary San Marcos County Water District Post Office Box 37 San Marcos, California. ISSUE: $200,000 consisting of two hundred bonds, numbered 1 to 200, both inclusive, of the denomination of $1,000 each, all dated June 1, 1958, and designated BONDS 0F SAN MARCOS COUNTY WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 1, SEWER BONDS, 1958 · MATURITIES: The bonds will mature in consecutive numerical order on June 1 in the amounts for each of the several years as follows: YEARS INCLUSIVE AMOUNTS PER YEAR 1961 to 1967 $ 2,000 1968 to 1974 3,000 1975 to 1979 4,000 1980 to 1983 5,000 1984 to 1986 6,000 1987 to 1989 7,000 1990 and 1991 8,000 1992 and 1993 9,000 1994 and 1995 l0,000 1996 and 1997 11,000 1998 l0,000 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. PAYMENT: 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, Escondido, California, or at the Main Office of Bank cA' 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. REGISTRATION: The bonds will be coupon bonds registerable only as to both principal and inberest. CALLABLE: The bonds maturing on or prior to June 1, 1973, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after June 1, 1974, or any of them, may be called before maturity and redeemed at the option of the Board of Directors of the district on June 1, 1973, or on any interest pay- ment date thereafter prior to maturity. All or any of the bonds subject to call may be called for redemption at any 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. Bonds called prior to maturity shall be redeemed at a redemption price equal to the principal amount thereof plus the following redemption premiums (percentage of par value) if redeemed at the following times: REDEMPTION DATES AND PREMIUMS On or after And prior to June 1 June 1 Premium 1973 1974 4% 1974 1975 3 3/4% 1975 1976 3 1/2% 1976 1977 3 1/4% 1977 1978 3% 1978 1979 2 3/4% 1979 1980 2 1/2% 198o 1981 2 1/4% 1981 1982 2% 1982 1983 1 3/4% 1983 1988 1 1/2% 1988 1993 1 1/4% 1993 Maturity 1% PURPOSE OF ISSUE: Said bonds were authorized for the purpose of the acquisition and construction of works and facilities for the collection, treatment and disposal of sewage, waste and storm water. SECURITY: Said bonds are issued pursuant to the County Water District Law, being Division XII of the Water Code of the State of California. Under said law, except to the extent that payments may be made from revenues, an annual tax shall be levied and collected upon all taxable property within Improvement District No. 1 of San Marcos County Water District sufficient to pay the interest on said bonds as the same falls due, and also to constitute a sinking fund for the payment of the principal of said bonds on or before maturity. TERMS OF SALE Interest Rate: The maximum rate bid may not exceed 7% per annum, payable annually the first year and semiannually thereafter. No bond shall bear more than one interest rate, and all bonds of the same maturity shall bear the same rate. The rate on any maturity or group of maturities shall not be more than 1-1/2% 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. Each bidder shall state in his bid the total net interest cost in dollars and the average net interest rate determined thereby, which shall be considered informative only and not a part of the bid. Highest Bidder: The bonds will be awarded to the highest responsible bidder or bidders considering the interest rate or rates specified and the premium offered, if any. The highest bid will be determined by deducting the amount of the premium bid (if any) from the total amount of interest which the district 6 would be required to pay from the date of said bonds to the respective maturity dates thereof at the coupon rate or rates specified in the bid and the award will be made on the basis of the lowest net interest cost to the district. The purchaser must pay accrued interest (com- puted on a 360-day year basis) from the date of the bonds to the date of delivery. 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 not prohibited by law to waive any irregu- larity 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 herein 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, ll7 Winston Street, .Los Angeles, California, or at any place agreeable to both the Auditor of the district and the successful bidder. 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 7 his options 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 bids together with the bid checks must be in a sealed envelopes addressed to the district with the envelope and bid clearly marked " Proposal for BONDS OF SAN MARCOS COUNTY WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 1, SEWER BONDS 1958. Bid Check: A certified or cashiotas check on a responsible bank or trust company in the amount of 3% of the principal amount of the bonds s 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 cheek 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 districts 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 holders from bonds of the same type and character shall be declared to be taxable income under 8 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 Opinions: The unqualified opinion of O'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 Certificates 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 -or- Schwabacher & Co. Secretary Financial Consultants San Marcos County Water District for the District Post Office Box 37 l00 Montgomery Street San Marcos, California San Francisco 4, California GIVEN by order of the Board of Directors of SAN MARCOS C0UNTY WATER DISTRICT. adopted April 29, 1958. ANNA D. CHARLTON Secretary of the Board of Directors of San Marcos County Water District 9 ADOPTED, SIGNED AND APPROVED this 29th day of April, 1958. 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) 10 STATE OF CALIFORNIA SS. COUNTY OF SAN DIEGO I, ANNA D. CHARLTON , Secretary of the Board of Directors of San Marcos Country Water District, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Board of Directors of said district at an adjourned regular meeting of said Board held on the 29th day of April, 1958, and that it was so adopted by the following vote: AYES: Directors Mahr, Smith, Trussell, Hazeltine, and Wells NOES: Directors None ABSENT: Directors N one (SEAL) Secretary of San Marcos County Water District and of the Board of Directors thereof.