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Reso 0152-03/1961 RESOLUTION NO. 152 RESOLUTION OF THE BOARD OF DIRECTORS OF SAN MARCOS COUNTY WATER DISTRICT PROVIDING FOR THE ISSUANCE AND SALE OF BONDS OF SAID DISTRICT IN THE AMOUNT OF $1,250,000 FOR THE ACQUI- SITION AND CONSTRUCTION OF CERTAIN DISTRICT IMPROVEMENTS. WHEREAS, pursuant to resolution adopted by the Board of Directors of San Marcos County Water District on August 1,1960, a special election was duly and regularly held in San Marcos County Water District of San Diego County, California, on September 13, 1960, at which elec- tion there was submitted to the qualified voters of said district the following proposition, to wit: PROPOSITION: Shall the San Marcos County Water District incur a bonded indebtedness in the principal sum of $1,250,000 for the following purpose: the acquisition and construction of works, property, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any district pur- pose, including the extension of existing pipelines, a water transmission pipeline with appurtenances and appurtenant works from the Second San Diego Aqueduct to a point within said district, a chlorination station, reservoirs, and the acquisition of all 1. and, easements, pipe, pumps, valves, machinery, apparatus, equipment and other property necessary for any of the foregoing, and including the payment of engineering, inspection and legal fees, costs of the issuance of the bonds and other costs and expenses necessary for the accomplishment of any of the fore- going? and WHEREAS, said proposition received the affirmative vote of more than two-thirds of all of the qualified voters voting at said election, and this Board is now authorized to issue bonds in the amount and for the purposes hereinabove specified; and WHEREAS, this Board of Directors deems it proper and the necessity therefor appears that said bonds be issued in the form and manner as hereinafter provided, and that bids be invited for said bonds, and that if bids are satis- factory 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 bonds of San Marcos County Water District of San Diego County, California, in the principal sum of $1,250,000 be issued and sold for the purposes set forth in the bond proposition in the recitals hereof. Said bonds shall be designated "SAN MARCOS COUNTY WATER DISTRICT, WATERWORKS BONDS, 1961," shall be one thousand two hundred and fifty in number, numbered 1 to 1,250, both inclusive, and shall be of the denomination of $1,000 each. Said bonds shall be dated April 1, 1961, and shall mature and be payable in consecutive numerical order on April 1 in the amounts for each of the several years as follows: Years of Principal Years of Principal Maturity Amount Maturity Amount 1962 - 1966 $15,o0o 1985 - 1987 $45,ooo 1967 - 1971 20,coo 1988 - 1989 5o,ooo 1972 - 1975 25,ooo 199o - 1991 55,000 1976 - 1979 30,000 1992 60,000 198o - 1982 35,o0o 1993 - m995 65,ooo 1983 - 1984 40,000 1996 70,000 Said bonds shall bear interest at a rate or rates to be hereafter fixed but not to exceed seven per cent (7%) per annum, payable annually for the first year on April 1, 1962, and semiannually thereafter on the first days of October and April of each year. Said bonds a~d the interest thereon shall be payable in lawful money of the United States of America at the main offices of Bank of America National Trust and Savings Association, i~ the cities of San Diego and Los Angeles, California, o~~ at any fiscal agency of the district i~ Chicago, Illinois, or i~ New York, New York at the option of the holder. Said bonds will be coupon bonds registrable only as to both principal a~d interest. Section 2. That the President of this Board a~d the Auditor of said district are hereby authorized and directed to sign all of said bonds by their printed, litho- graphed or engraved facsimile signatures, a~d the Secretary of this Board is hereby authorized and directed to counter- sign said bonds and affix thereto the seal of said district, and the Auditor of said district is hereby authorized a~d directed to sign the interest couposs affixed to said bonds by his printed, lithographed or engraved facsimile signature, a~d to number said interest coupons affixed to each of said bonds consecutively. Section 3- That said bonds and the coupons for the interest thereon shall be issued in substantially the following form: UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF SAN DIEGO SAN MARCOS C00]qTY WATER DISTRICT WATERWORKS BOND, 1961 No. $1,000. SAN MARCOS COUNTY WATER DISTRICT, a public corporation situated in the County of San Diego, State of California, and organized and existing under the laws of the State of California, FOR VALUE RECEIVED, promises to pay to the bearer hereof out of the funds hereinafter described the sum of ONE THOUSAND DOLLARS ($1,000) on the first day of April, 19 , with interest there- on at the rate of per cent ( %~) per annum, payable semiannually on the first days of October and April of each and every year from the date hereof until this bond is paid, except that interest for the first year shall be payable in one installment at the end of said year, on pre- sentation and surrender of the respective interest coupons hereto attached. Both principal and interest are payable i~ lawful money of the United States of America at the main offices of Bank of America National Trust and Savings Association, in the cities of San Diego and 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. Unless this bond matures on or prior to April 1, 1981, it is redeemable prior to maturity in accordance with the provisions for redemption endorsed hereon. This bond is issued under and in pursuance of and in conformity with the provisions of the County Water District Law, being Division XII of the Water Code of the State of California, and acts supple- mentary thereto, and in pursuance of the laws and Constitution of the State of California, and is authorized by a vote of more than two-thirds of all of the qualified voters of said district voting at an election duly a~d regularly called, held and conducted in said district on September 13, 1960. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this bond have existed, happened and been performed in due time, form and manner as re- quired by law. IN WITNESS WHEREOF, said San Marcos County Water District has caused this bond to be signed by the President of its Board of Directors and the Auditor of said district by their facsimile signa- tures, and countersigned by the Secretary of said Board, and sealed with the corporate seal of said district, and has caused the interest coupons here- to attached to be signed by the facsimile signature of the Auditor of said distrlct, and has caused this bond to be dated this first day of April, 1961. President of the Board of Directors of San Marcos (SEAL) County-Water District. COUNTERSIGNED: Auditor of San Marcos County Water District. Secretary of the Board of Directors of San Marcos County Water District. (COUPON FORM) On the first day of SAN MARCOS COUNTY WATER DISTRICT, 19 San Diego County, California, will pay to the bearer hereof at the main offices of Bank of America Coupon No. National Trust and Savings Asso- ciation, in the cities of San Diego and Los Angeles, California, or at any fiscal agency of the dis- trict in Chicago, Illinois, or in New York, New York, at the option of the holder the sum of $ in lawful money of the United States of America, heine the interest them due on its WATERWORKS BOND, 1961, N0. Dated April I, 1961. Auditor of San Marcos County Water District. (REVERSE OF COUPON) if the bond to which this coupon is attached is redeemable and is duly called for redemption on a date prior to the maturity date of this coupon, this coupon will be void.) (REVERSE OF BOND) PROVISIONS FOR REDEMPTION Unless this bond matures on or prior to April 1, 1981, it is redeemable in the manner and subject to Ibhe terms and provisions, and with the effect, set forth in Resolution No. (adopted by the Board of Directors of San Marcos County Water District on , 1961) at the option of said Board on April 1, 1961, or on any interest pay- ment date thereafter prior to maturity, upon at least thirty (30) days' prior notice i~ a newspaper of general circulation in the county in which the office of the district is situated, and in a newspaper of general circulation in the City of Los Angeles, California, at a redemption price equal to the prin- cipal amount thereof plus the following premiums (percentage of par value) if redeemed at the following times: REDEMPTION DATES AND PREMIUMS On or after And prior to April 1 April 1 Premium 198l 1982 4~ 1982 1983 3-3/4~ 1983 1984 1984 1985 3-l/4~ 1985 1986 3~ 1986 1987 1987 1988 2-1/2~ 1988 1989 2-1/4% 1989 1990 m990 199l 1-3/4~ 199l 1992 l-l/2~ 1992 1993 l-l/4/~ 1993 Maturity Section 4. That the proceeds of the sale of said bonds, except the premium and accrued interest, if any, shall forthwith be placed in a fund of said district hereby created and designated "WATERWORKS BONDS, 1961, CONSTRUCTION FUND," and the moneys in said fund shall be applied exclusively to the acquisition and construction of the improvement described in the bond proposition set forth in the recitals hereof. Section 5. That so far as possible the interest on and principal of said bonds shall be paid from the revenues of the San Marcos County Water District. If the San Marcos County Water District has no revenue or if the revenues of the district are, or in the judgment of this Board of Direc- tors are likely to be, inadequate to 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 with- in said district sufficient to pay the interest on said bonds as the same fails due and also to constitute a sinking fund for the payment of the principal of said bonds on or before maturity, all as provided in the County Water District Law, being Division XII of the Water Code of the State of California. All moneys derived from such tax and all other~ moneys allocated and designated for the payment of said bomds and the interest thereon including the premium and accrued interest, if any, received from the sale of said bonds shall be placed in a fund of the district designated, "WATERWORKS BONDS,1961, INTEREST AND REDEMPTION FUND," and until all of said bonds, and all interest thereon, has been fully paid the moneys in said fund shall be used for no other purpose than the pay- ment of said bonds and the interest thereon. Section 6. The bonds maturing on or prior to April 1, 1981, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after April 1, 1982, or any of them may be called before maturity and re- deemed at the option of" the Board of Directors of the dis- trict on April 1, 1981, or on any interest payment date thereafter p'Pior to maturity at a redemption price for each redeemable bond equal to the principal amount thereof, plus the following premium (percentage of par value) if redeemed at the f'ollowing times: REDEMPTION DATES AND PREMIUMS On or after And prior to April 1 April i Premium 1981 198z 4~ 1982 1983 1983 1984 j-m/2~g 1984 1985 1989 1986 1986 1987 2-3Z4~ 1988 1989 2-1/4% 1989 1990 1990 1991 1-3/4% 1992 1993 1993 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 ape redeemed at any one time, such bonds shall be redeemed only in inverse order of maturity and number beginning with the highest numbered bond. The interest payment date which bonds which are called ape to be presented for re- demption is hereinafter sometimes called the "redemption date. Section 7. Notice of bhe intended redemption shall be published by two (2) publications in a newspaper of general circulation in the county in which the orfice of the district is situated and in s newspaper of general circu!atios is the City of Los Angeles, California, the first publication to be at least thirty (30) days but ~ot more than sixty (60) days prior to the redemption date. The notice of Podempties shall (a) state the redemption date; (b) state the redemption price; (c) state the numbers and date of maturity of the bonds to be redeemed, provided, however, that whenever any call includes all of the bonds of a maturity, the numbers of such maturity need not be stated; (d) require that such bonds be surrendered with all interest coupons maturing sub- sequent to the redemption date at the main offices of Bank of America National Trust and Savings Association in the cities of San Diego and 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; (e) require that bonds which at the time of call are registered so as to be payable other than to bearer shall be accompanied by appropriate instruments of assiSnment duly executed in blank; and (f) give notice that further interest on such bonds will not accrue after the designated redemption date. If any of the bonds designated for redemption shall be registered so as to be payable otherwise than to bearer, the Auditor of the district shall, on or before the date of the first publication of said notice of redemption, mail a similar notice, postage prepaid, to the respective registered owners thereof at the addresses appearing on the bond registry books. The actual receipt by the holder of any bond (hereinafter referred to as "bondholder") of notice of such redemption shall not be a condition precedent to re- demption, and failure to receive such notice shall not affect the validity of the proceedings for the redemption of such bonds or the cessation of interest on the date fixed for redemption. The notice or notices required by this section shall be given by the Auditor of the district. A certificate by said Auditor that notice of call and redemption has been given to holders of registered bonds as herein provided shall be conclusive as against all parties, and no bondholder whose registered bond is called for redemption may object thereto or object to the cessation of interest on the redemption date fixed by any claim or showing that he failed to actually re- ceive such notice of call and redemption. Section 8. Prior to the time the Board of Directors determines to call and redeem any of said bonds there shall be established in the treasury of the district a redemption fund to be described or known as "WATERWORKS BONDS, 1961, REDEMPTION FUND," and prior to the redemption date there must be set aside in said Redemption Fund moneys available for the purpose and sufficient to redeem at the premiums payable as in this resolution provided, the bonds designated in such notice of redemption. Said moneys must be set aside in said fund solely for that purpose and shall be applied on or after the re- demption date to payment (principal and premium) for the bonds to be redeemed upon presentation and surrender of such bonds 10. and all interest coupons maturing after the redemption date, and shall be used only for that porpose. Any interest coupons due on prior to the redemption date shall be paid from the Interest and Redemption Fund provided for herein upon presenta- tion and surrender thereof. Each bond presented must have attached thereto or presented therewith all interest coupons maturing after the redemption date. If after all of the bonds have been redeemed and cancelled or paid a~d cancelled there are moneys remaining in said Redemption Fund, said moneys shall be transferred to the general fund of said district; provided, however, that if said moneys are part of the proceeds of re- funding bonds said moneys shall be transferred to the fund created for the payment of principal of and interest on such refunding bonds. Section 9. When notice of redemption has been given, substantially as provided for herein, and when the amount necessary for the redemption of the bonds called for redemption (principal and premium) is set aside for that purpose in the Redemption Fund, as provided for herein, the bonds designated for redemption shall become due and payable on the date fixed for redemption thereof, and upon presenta- tion and surrender of said bonds and all interest coupons maturing after the redemption date, at the place specified in the notice of redemption, and if any of said bonds be registered, upon the appropriate assignment thereof in blank, such bonds shall be redeemed and paid at said re- demption price out of the Redemption Fund, and no interest will accrue on such 'bonds called for redemption or on any 11. interest coupons thereof after the redemption date specified in such notice, and the holders of said bonds so called for redemption after such redemption date shall look for the payment of such bonds and the premium thereon only to said Redemption Fund. All bonds redeemed and sii interest coupons thereof shall be cancelled forthwith and shall not be re- issued. All interest coupons pertaining to any redeemed bonds, which coupons have matured on or prior to the time fixed for redemption, shall continue ~o be payable to the respective holders thereof but without interest thereon. All unpaid interest payable at or prior to the date fixed for redemption upon bonds registered in such manner that the interest is paysbie osly to the registered owners shall continue to be payable to the respective registered owners of such bonds, or their order, but without interest thereon. Section 10. That sealed propoasis for the chase of said $1,250,000 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. on April 18, 1961 Section 11. 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. 12. Section 12. That the Secretary of this Board is hereby authorized and directed to cause to be furnished to prospective bidders copies of the notice inviting prcposa!s and of an official statement relating to the properties, operations an5 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 13. That said notice shall be substan-. tially as follows: NOTICE INVITING BIDS ON $1,250,000 GENERAL OBLIGATION BONDS 0F SAN MARCOS COUNTY WATER DISTRICT. NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $1,250,000 par value general obligation bonds of San Marcos County Water District of San Diego County, California, will be received by the Board of Direc- tors of said district at the place and up to the time below specified: TIME: April 18, 1961 7:30 o'ciock P.ivl. 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 W. Dennis Wood, Secretary San Marcos County Water District Post Office Box 37 San Marcos, California. ISSUE: $1,250,000 consisting of one thousand two hundred and fifty bonds numbered 1 to 1,250, both inclusive, of the denomination of $1,000 each, all dated April 1, 1961, and designated SAN MARCOS COUNTY WATER DISTRICT, WATERWORKS BONDS, 1961 . '' MATURITIES: The bonds will mature in consecutive numerical order on April 1 in the amounts for each of the several years as follows: 14. Years of Principal Years of Principal Maturity Amount Maturity Amount 1962 - 1966 ~i~,000 1985 - 1987 $45,000 1967 - 1971 20,000 1988 - 1989 90,000 1972 - m975 29,000 m990 - m99m 39,coo 1976 - 1979 30,000 1992 60,000 198o - m98s 35,000 m993 - m995 65,000 1983 - 1984 40,000 1996 70,000 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 on April 1st and semiannually thereafter. PAYMENT~ Said bonds and the interest thereon are payable in lawful money of the United States of America at the main offices of Bank of America National Trust and Savings Association, in the cities of San Diego and Los Angeles, California, or at a~y fiscal agency of the dis- trict in Chicago, Illinois, or in New York, New York at the option of the holder. REGISTRATION: The bonds will be coupon bonds registrable only as to both principal and interest. CALLABLE: The bonds maturing on or prior to April 1, 1981, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after April 1, 1982, or any of them may be called before maturity and re- deemed at the option of the Board of Directors of the dis- trict on April 1, 1981, 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 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 April I April 1 Premium 1981 1982 4~ i982 1983 3-3/4~ 1983 1984 3-1/28 1 ~84 1985 l/4 1985 m986 3% 1986 1987 2-3/4~ 1987 1988 2-1/2% 1986 1989 2-1/4~ 1989 1990 2% 1990 199l l-3/4~ 1991 1992 1-l/2~ 1992 1993 l-m/ S 1993 Maturity 1% PURPOSE OF ISSUE: Said bonds were authorized for the purpose of the acquisition and construction of works, property, rights, and privileges useful or necessary to convey, supply, store, or make use of water for any district purpose. 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 said 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 0F 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 1/8 or 1/20 of 1%. 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 1/2% 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 here- by 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 inform- ative 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 deterxnined by deducting the amount of the premium bid (if any) from the total amount of interest which the district wouId be required 17. to pay from the date of said bonds to the respective maturity dates thereof at the coupon rate or rates speci- fied is the bid and the ward will be made on the basis of the lowest net interest cost to the district. The pur- chase must pay accrued interest (computed on a 360-day year basis) from the date of the bonds to the date of de- livery. 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 al! 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 speci- fied 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, or at any other 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 his option, to cancel the contract of purchase if the 1S. 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 dis- trict with the envelope and bid clearly marked "Proposal for San Marcos County Water District, Waterworks Bonds, 1961." Bid Check A certified or cashier's check 0n a responsible bank or trust company in the amount of 1% of the principal amount of the honds, payable to the order of the district must accompany each proposal as a guaranty that the bidder, if successful, will accept asd 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 pro- posal is accepted but not performed, unless such failmre of performasce shall be caused by any act or omission of the district, shall then be retained by the district. The check accompanyisg each unaccepted proposal will be re- turned 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 re- ceived by private holders from bonds of the same type and character shall be declared to be taxable iscome under pre- sent federal income tax laws, either by a ruling of the 19. Bureau of Internal Revenue or by a decision of any federal court, or shall be declared taxable by the terms of any federal income bax 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. If requested in the bid of the successful bidder, a copy of the legal opinion certified by an officer of the district by his facsimile signature will be printed on the back of each bond, at no expense to the successful bidder. No Litigation Certificate: At the time of payment 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: W. Dennis Wood, Secretary Schwabacher & Co. San Marcos County Water Financial Consultants District - OR - for the district Post Office Box 37 100 Montgomery Street San Marcos, California San Francisco 4, California GIVEN by order of the Board of Directors of San Marcos County Water District adopted March 20 , 1961. W. DENNIS WOOD Secretary of the Board of Directors of San Marcos County Water District. 20. ADOPTED, SIGNED AND APPROVED this 20th day of March , 1961. President of the Directors of San Marcos County Water District. ATTEST: Secretary of of Directors of San Marcos County Water District. STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO' t s s. I, W. DENNIS WOOD, 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 Diz'ectors of said district at a regular meeting of said Board held on the 20th day of March , 1961, and that it was so adopted by the following vote: AYES: Directors Blanchard, Dodds, Mahr, Smith, and Trussell NOES: Directors i~one ABSENT: Directors None Secretary of San Marcos County Water District and of the Board of Directors thereof.