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Reso 0136-10/1960 RESOLUTION NO. 136 RESOLUTION OF THE BOARD OF DIRECTORS OF SAN MARCOS COUNTY WATER DISTRICT PROVIDING FOR THE ISSUANCE AND SALE OF BONDS OF SAID DISTRICT FOR IMPROVE- MENT DISTRICT NO. 5 T31EREOF IN THE AMOUNT OF $600,000 FOR THE ACQUISI- TION AND CONSTRUCTION OF CERTAIN DISTRICT IMPROVEMENTS. WHEREAS, pursuant to resolution adopted by the Board of Directors of San Marcos County Water District on April 11, 1960, a special election was duly and regularly held in Improvement District No. 5 of Sam Marcos County Water District of San Diego County, California, on May 10, 1960, at which election there was submitted to the quali- fied voters of said Improvement District No. 5 the follow- ing proposition to wit: PROPOSITION: Shall the San Marcos County Water District incur a bonded indebtedness for Improve- ment District No. 5 thereof in the principal sum of $600,000 for the purpose of the acquisition and con- struction of additional trunk sewers and appurtemant work, including the acquisition of all land, easements, rights of way, pipe, valves, machin- ery and other property necessary for any of the foregoing together with all necessary engineering and legal services in connection therewith? 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 hereinshore 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 mariner 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 prin- cipal sum of $600,000 be issued and sold for the purposes set forth in the bond proposition in the recitals hereof. Said bonds shall be designated "BONDS OF SAN MARCOS COUNTY WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 5, SEWER BONDS shall be six hundred in number, numbered 0 to 600, both inclusive, and shall be of the denomination of $1,000 each. Said bonds shall be dated December 1, 1960, and shall mature and be payable in consecutive numerical order on December 1 in the amounts for each of the several years as follows: Year Inclusive Amounts Per Year 1961 - 1970 $ 5,000 1971 - 1980 i0,000 1981 - 1986 15,000 1987 - 1991 20,000 1992 - 1995 25,00o 1996 - 1998 30,000 1999 - 2000 35,000 Said bonds shall bear interest at a rate or rates to be hereafter fixed but not to exceed seven per cent (7cents) per annum, payable annually for the first year on December 1, 1961, and semiannually thereafter on the first days of June and December of each year. Said bonds and 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, 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. Said bonds will be coupon bonds registerable only as to both principal and interest. Section 2. That the President of this Board an~ 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, and the Secretary of this Board is hereby authorized and directed to coulter- sign said bonds and affix thereto the seal of said district, and the Auditor of said district is hereby authorized and directed to sign the interest coupons affixed to said bonds by his printed, lithographed or engraved facsimile signa- ture, and 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 BOND OF SAN MARCOS COUNTY WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 5 SEWER BOND 1960 $1,000 SAN MARCOS COUNTY WATER DISTRICT, a public corpor- ation 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 December, 19 , with interest thereon at the rate of per cent (. %) per annum, payable semiannually on the first days of June and December 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 presentation and surrender of the respective interest coupons hereto attached. Both principal and interest 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 any fiscal agency of the district in Chicago, Illinois, or in New York, New York, at the option of the holder. Unless this board matures on or prior to December 1, 1979, it is redeemable prior to maturity in accordance with the provisions for redemption endorsed hereon. Except to the extent that the principal of this bond and the interest thereon may be paid from revenues of said district as permitted or required by law, the principal of this bond and the interest thereon are payable exclusively out of taxes levied upon the taxable property in Improvement District No. 5 of said San Marcos County Water District. 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 supplementary 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 ali of the qualified voters of said improvement District No. 5 voting at an election duly and regularly called, held and conducted in said Improvement District on May 10, 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 required 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 signatures, and countersigned by the Secretary of said Board, and sealed with the corporate seal of said dis- trict, and has caused the interest coupons hereto attached to be signed by the facsimile signature of the Auditor of said district, and has caused this bond to be dated this first day of December, 1960. Directors of San Marcos County Water District. COUNTERSIGNED: Secretary of the Board of Auditor of San Marcos Directors of San Maxcos County Water District. County Water District. (SEAL) On the first day of SAN MARCOS COUNTY WATER DISTRICT, San 19. Diego County, California, will pay to the bearer hereof at the Main Offices of Bank of America National Trust and Coupon No. 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, st the option of the holder, the sum of in lawful money of the United States of America, being the interest then due on "Bond of San Marcos County Water District for Improvement Dis- trict No. 5, Sewer Bond 1960,"dated December 1, 1960. Taxes levied for the payment of this coupon are to be levied exclusively upon the taxable property in Improvement District No. 5 of San Marcos County Water District. 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 F0R REDEMPTION Unless this bond matures on or prior to December 1, 1979, it is redeemable in the manner and subject to the 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 , 1960) at the option of said Board on December 1, 1979, or on any interest payment date thereafter prior to maturity, upon at least thirty (30) days' prior notice in a newspaper of general circmlation 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 principal 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 December 1 December 1 Premium i979 1980 1980 m98l 3-3/4~ 1981 1982 3-1/2~ 1982 1983 3-1/4~ 1983 1984 1984 1985 1985 1986 2-1/2% 1986 1987 2-i/4% 1987 1988 2~ 1988 1989 1-3/4~ !989 1990 m990 m99l 1-1/4~ 1991 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 "IMPROVEMENT DISTRICT NO. 5, SEWER BONDS, 1960, 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 iterest 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 Directors are likely to be, inadequate to pay the interest on or prin- cipal of said bonds as it becomes due, an annual tax shall be levied and collected upon all taxable property within Improvement District No. 5 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, all as pro- vided 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 bonds 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 ~IMPROVEMENT DISTRICT NO. 5 SEWER BONDS 1960, 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 payment of said bonds and the interest thereon. Section 6. The bonds maturing on or prior to December 1, 1979, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after December l, 1980, or any of them, may be called before maturity and redeemed at the option of the Board of Directors of the district on December 1, 1975, or on any interest payment date thereafter prior to maturity at a redemption price for each redeemable bond equal to the principal 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 December 1 December 1 Premium 1979 1980 4~ 1980 198m 3-3/.4~ 198Z 1982 1982 1983 3-1/4~ 1983 1984 3% 1984 m985 2-3/4~ 1985 1986 2-1/2~ 1986 1987 2-!/4~g 1987 1988 1988 1989 1-3/4~ i989 1990 1-1/2% 1990 1991 1-1/4% 1991 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. The interest payment date on which bonds which are called are to be presented for re- demption is hereinafter sometimes called the "redemption date. "' Section 7. Notice of the intended redemption shall be published by two (2) publications in 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, the first publication to be at least thirty (30) days but not more than sixty (60) days prior to the redemption date. The notice of redemption shall (a) state the redemption date; (b) state the redemption price; (c) state the numbers and dates 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 subsequent 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 reg- istered so as to be payable other tha~ to bearer shall be accompanied by appropriate instruments of assignment 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 redemption, 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 6iven to holders of registered bonds as herein provided sinai! 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 receive 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 tLe district a redemption fund to be described or known as "IMPROVEMENT DISTRICT NO. 5, SEWER BONDS 1960, REDEMPTION FUND," and prior to ~he 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 and solely for that purpose and shall be applied on or after the redemption date to payment (principal and premium) for the bonds to be redeemed upon presentation and surrender of such bonds and all interest coupons maturing after the redemption date, and shall be used only for that purpose. Any interest coupons due on or prior to the i0. redemption date shall be paid from the Interest and Redemption Fund provided for herein upon presentation and surrrender 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 re- deemed and cancelled or paid and 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 refunding 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 presentation 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 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 all interest coupons thereof shall be cancelled forthwith and shall not be reissued. All interest coupons pertaining to any redeemed bonds, which coupons have matured on or prior to the time fixed for redemption, shall continue to 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 payaDle only to the registered owners shall con- tinue to be payable to the respective registered owners of such bonds, on their order, but without interest thereon. Section 10. That sealed proposals for the pur- chase of said $600,000 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 November 15, 1960. 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. 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 proposals and of an official statement relating to the properties, operations a~d finances of said district, and to cause to be published a sotice inviting bids on said bonds by one insertion in THE BOND BUYER, but failure i~ 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: 13. NOTICE INVITING BIDS ON $600,000 GENERAL OBLIGATION BONDS OF SAN MARCOS COUNTY WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 5 NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $600,000'par value general obligation bonds of San Marcos County Water District for improvement District No. 5 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: November 15, 1960 7:30 o'clock P.M. 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 W Dennis Wood c/o Secretary San Marcos County Water District Post Office Box 37 San Marcos, California. ISSUE: $600,000 consisting of six hundred bonds numbered 1 to 600, both inclusive, of the denomination of $1,000 each, all dated December 1, 1960, and designated "BONDS OF SAN MARCOS COUNTY WATER DISTRICT F0R IMPROVEMENT DISTRICT NO. 5, SEWER BONDS 1960." MATURITIES: The bonds will mature in consecutive numerical order on December i in the amounts for each of the several years as follows: 14. Years Inclusive Amomnts Per Year 1961 - 1970 $ 5,000 1971 - 198o 10,000 19 1 - 1986 19,000 i967-199l 20,000 t99 - 1995 25,000 1995 - 1998 30,000 1999 - 2000 35,000 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 December ist 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 Savisgs Association, 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. REGISTRATION: The bonds will be coupon bonds registerable only as to both principal and interest. CALLABLE: The bonds maturing on or prior to December 1, 1979, shall not be subject to call or redemption prior to maturity. The bonds maturing on or after December 1, 1980, or any of them, may be called before maturity and redeemed at the option of the Board of Directors of the district on December i, 1979, or on a~y interest payment date thereafter prior to maturity. All or any of the bonds smbject 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 December 1 December i Premium 1979 1980 4~ 1980 m981 lgSm m982 1983 1983 1984 3% 1984 1985 2-3/4% 1985 1986 2-1/2% 1986 1987 2-1/4% mgS7 m98~ m988 19 9 1-3/a% 1989 1990 1-1/2% 1990 1991 1-1/4% 1991 Maturity 1% PURPOSE 0F ISSUE: Said bonds were authorized for the purpose Of the acquisition and construction of additional trunk sewers and appurtenant work. SECURITY: Said bonds are issued pursuant to the Comnty 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 annmal tax shall be levied and collected upon all taxable property within Improvement District No. 5 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 16. 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 maternity or group of matur- ities shall ~ot be more than 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 offere, 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 thetotal 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 censidering 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 would be required to pay from the date of said bonds to the pespective 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 (computed 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 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 time time herein prescribed for th~ 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 jeffries Banknote Company, 117 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 his option, to cancel the contract of purchase if the dis- trict 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, addresssed to the dis- trict with the envelope and bid clearly marked 'TFroposal for Bonds of San Marcos County Water District for improve- ment District No. 5, Sewer Bonds 1960. Bid Check: A certified or cashier's check on a responsible bank or trust company in the amoant of 3% of the principal amount of the bonds, payable to the order of the dmstrict must accompany each proposal as a guaranty that the bidder, if saccessful, will accept and pay for said bonds in accordance with the terms of his bid. The pro- ceeds 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 perform- ance shall be caused by any act or omission of the district, shall then be retained by the district. The check accompany- ing 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 re- ceived by private holders 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, o~ 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. 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 signattire will be printed on the back of each bond, at the expense of the district. 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 fur information concerning the district should be addressed to W. Dennis Wood OR Schwabacher & Co. Secretary of San Marcos Financial Consultants County Water District 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 1960 W. DENNIS WOOD Secretary of the Board of Directors of San Marcos County Water District. 20. ADOPTED, SIGNED AND APPROVED this 17th day of October , 1960. President of Board of. Directors of San Marcos County Water District. ATTEST.:. Directors of San Marcos County Water District STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO t ss. W. DENNIS WOOD 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 Directors of said district at a ...... regular meeting of said Board held on the l7th day of October , 1950, and that it was so adopted by the following vote: AYES: Directors Blanchard, Dodds, Mahr, Smith and Trussell NOES: Directors None ABSENT: Directors None District and of the Board of Directors thereof. 21.