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Reso 0586-03/1981 RESOLUTION NO. 586 RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN MARCOS COUNTY WATER DISTRICT, CALIFOR- NIA, PROVIDING FOR THE ISSUANCE OF BONDS OF SAID DISTRICT FOR ASSESSMENT DISTRICT NO. 76-2 THEREOF IN A TOTAL PRINCIPAL AMOUNT NOT TO EXCEED $5,579,759.34 WHEREAS, by its Resolution No. 579, this Board of Directors confirmed an assessment on lands lying within Assessment District No. 76-2 (Mt. Whitney) of said District; and WHEREAS, by its Resolution No. 581-A, this Board of Directors revised said assessment and ordered the assessment and diagram, as so revised, to be recorded and filed as required by the Municipal Improvement Act of 1913; and WHEREAS, said assessment and diagram, as so revised, were recorded and filed as ordered and required on January 23, 1981; and WHEREAS, by its Resolution No. 581-B, this Board of Directors further revised the aforesaid assessment and ordered the assessment and diagram, as further revised, to be recorded and filed as required by the Municipal Improve- ment Act of 1913; and WHEREAS, said assessment and diagram, as further revised, were recorded and filed as ordered and required on February 26, 1981; and WHEREAS, the revised total assessment so confirmed was $5,688,198.76; and WHEREAS, by its Resolution No. 550, this Board of Directors resolved that serial bonds, bearing interest at a rate not to exceed 10% per annum, shall be issued under and as provided for in the Improvement Bond Act of 1915 to represent assessments not paid within thirty (30) days after the recordation of said assessments; and WHEREAS, this Board of Directors deems it proper, and the necessity there- for appears, that bonds to represent said unpaid assessments, in a principal amount not to exceed $5,579,759.34 be issued in the form and manner as herein- after provided, NOW, THEREFORE, the Board of Directors of the San Marcos County Water District DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: SECTION 1. Bonds in an aggregate principal amount not to exceed $5,579,759.34 shall be issued to represent assessments upon lands lying within Assessment District No. 76-2 which have not been paid within thirty (30) days -1- Resolution No. 586 after the recordation of the revised assessment and diagra;m. The bonds authorized herein (the"Bonds") shall be designated "IMPROVEMENT BOND, SAN MARCOS COUNTY WATER DISTRICT, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ASSESSMENT DISTRICT NO. 76-2 (MT. WHITNEY)". Unless otherwise determined by this Board of Directors, the Bonds shall be in the principal amount of $5,579,759.34, numbered consecutively from 1 through 1116, inclusive, dated April 2, 1981, in the denomination of $5,000 (except that Bond No. 1 shall be in the denomination of $4,759.34), bearing interest from their date at the rate or rates determined by this Board of Directors at the time of award of sale of the Bonds (but not to exceed ten percent (10%) per annum) . payable on January 2 and ,july 2 of each year c'ommencing January 2, 1982, and maturing in consecutive numerical order over a period commencing July 2, 1982, and ending july 2, 1996, according to the following schedule. Principal Amount Year Maturing 1982 $ 49,759.34 1983 200,000.00 1984 210,000.00 1985" 240,000.00 1986 260,000.00 1987 290,000.00 1988 320,000.00 1989 350,000.00 1990 390,000.00 1991 420,000.00 1992 470,000.00 1993 510,000.00 1994 570,000.00 1995 620,000.00 1996 680,000.00 SECTION 2. Both the principal of and the interest on the Bonds are pay- able at the offices of the San Marcos County Water District in the San Marcos, California, or, at the option. of the bondholder, at the principal offices of the paying agent, Security Pacific National Bank, in Los Angeles, California; pro- vided, however, that interest on any Bond which has been registered as provided for herein shall be payable by check mailed to the registered owner of said Bond as his name and address appear on the registry books as the registered owner of such Bond at the close of business on the tenth day preceding the interest pay- ment date, or to his order. SECTION 3. Said bonds shall be issued in substantially the form set forth in Section 8652 of the Streets and Highways Code and the coupons for said interest thereon shall be in substantially the following form: -2- (INTEREST COUPON FORM) On the Second day of , 19 the SAN MARCOS COUNTY WATER DIS- TRICT, California, will pay to the bearer .COUPON NO. at the offices of the District in San Marcos, California, or at the principal office of the paying agent, Security Pacific National Bank, in Los Angeles, California~'~ the sum shown hereon in lawful money of the United States of America, being the interest then due on its Improvement Bond No. Dated: April 2, 1981 Auditor of the San Marcos County Water District -3- 183 (REVERSE SIDE OF COUPON) If the bond to which this coupon is attached is redeemable and is duly called for redemption prior to the maturity date of this coupon, this coupon will be void. SECTION 4. Substantially the following provisions for registration shall be printed on the reverse side of each bond: PROVISIONS FOR REGISTRATION This bond may be registered in the name of any person as the registered owner hereof, both as to principal and interest, but, if registered, may not be discharged from regis- tration. Each registration or transfer after registration of this bond shall be entered by the Auditor in books kept by him for the purpose and noted by him in the registration blank below. Upon registration, all unmatured coupons pertaining hereto shall be surrendered to the Auditor. So long as this bond is registered, no transfer hereof shall be valid for any purpose unless made by the registered owner and entered and noted as herein provided, and the principal hereof and any redemption premium shall be payable only to the registered owner, or to his order. Interest on this bond, if registered, shall be payable to the person whose name appears upon the registry books as the registered owner hereof at the close of business on the tenth day preceding the interest paym'ent date, or to his order. Each request for registration or transfer must be in form satisfactory to the Auditor and must be made in writing, signed by the registered owner, or by his agent duly authorized in writing, or by the bearer, as the case may be. Date of In Whose Name Signature of Registration Registered Auditor -4- Resolution No. 586 SECTION 5. The Bonds shall be executed on behalf of the District, and under its official seal, by the Secretary and by the Auditor; and the coupons shall be executed by said Auditor, whose signature may be reproduced on the Bonds and on the coupons by an engraved, printed or lithographed facsimile thereof; and the seal of the District may be placed on the BO>nds in like manner. Such signing and sealing shall constitute and be a sufficient and binding execution of each and every one of the Bonds and coupons. If any officer whose signature appears on the Bonds or coupons ceases to be such an officer before any delivery of the Bonds to the purchaser thereof, such signature shall be as valid as if such officer had remained in office till the delivery of the Bonds. SECTION 6. Moneys received by the District from the cash payments of assessments, contributions or any other source for the acquisition, construc- tion and financing of the improvements, together with the proceeds received from the sale of the Bonds, including any premium received by the District on the. sale of the Bonds (but not including the moneys required to be placed in the Reserve Fund hereinafter established pursuant to Section 8 hereof nor any accrued interest, which shall be placed in the Redemption Fund) shall be placed in a fund of the District which is hereby created and designated the Assessment District No. 76-2.(Mt. Whitney) Construction Fund ("the Construc- tion Fund"). Disbursement from the Construction Fund shall be made exclusively to pay the costs of the acquisitions and/or improvements, together with all expenses incidental thereto. Any surplus remaining in the Construction Fund after payment of all costs shall be used, in such amounts as the Board may determine, in accordance with the provisions of law for one or more of the following purposes: (a) Transfer to the general fund of the District, provided that the amount of any such transfer shall not exceed the lesser of $1,000 or 5% of the total amount expended from the Construction Fund; (b) As a credit upon the assessment and any supplemental assessment; provided that such surplus may, if the Board so determines, also be applied as a credit on account of contributions made by it toward the cost and expenses of the acquisitions and improvements in -5- 167 Resolution No. 586 the proportion which such contribution bears to the total amount of the assessment or supplemental assessment prior to the deduction of all such contributions; or (c) For the maintenance of the improvements acquired or constructed in said proceedings. SECTION 7. Any accrued interest received on account of the sale of the - Bonds, all sums received from the collection of unpaid assessments and inter- est and penalties thereon (but excluding collection charges), and any amounts advanced from the Reserve Fund or otherwise in satisfaction of the District's obligations under Section 11 hereof shall be placed in a fund of the District which is hereby created and designated the Assessment District No. 76-2 (Mt. Whitney) Redemption Fund (the "Redemption Fund"). Disbursement from the Redemption Fund shall be made exclusively to pay the principal or redemption price of the Bonds and the interest due thereon. Any surplus remaining in the Redemption Fund after payment of all Bonds and the interest thereon shall fiTst be applied to repayment to the District of any funds advanced by it for the purpose of paying for lands purchased by it under Part 13 of the Improvement Bond Act of 1915, less its recovery on the lands purchased.at such delinquent sale, and also of any costs incurred by it thereunder. The remainder shall be repaid in accordance with the provisions of Health and Safety Code Section 8783 to persons paying supple- mental assessments, if any, and the balance may be proportionately credited upon the final installments due upon the assessments securing the bonds and repaid to those persons whose assessments have been previously paid or may be transferred to the general fund of the District. SECTION 8. An amount equal to 10% of the aggregate principal amount of the Bonds sold shall be placed, upon receipt of the proceeds from the sale of the Bonds, in a fund of the District which is hereby created and designated the Assessment District No. 76-2 (Mt. Whitney) Reserve Fund (the "Reserve Fund"). Moneys in the Reserve Fund shall be paid and transferred in the following amounts and at the following times and under any of the following circumstances: -6- Resolution No. 586 (a) Whenever there are unsufficient funds in the Redemption Fund to meet the next maturing installment of principal of or interest on the Bonds, an amount necessary to pay such deficiency shall be trans- ferred as an advance from the Reserve Fund to the Redemption Fund. The amount so advanced shall be reimbursed and deposited in the Reserve Fund from the proceeds of redemption or sale of the parcel or parcels for which payment of delinquent installments was made from the Reserve Fund. (b) On June 30 of each year, commencing June 30, 1982, the amount of any interest earned to said date by the investment of all or any portion of said Reserve Fund shall be transferred from the Reserve Fund to the Redemption Fund and applied to the advance retirement of Bonds in the manner provided in the Improvement Bond Act of 1915. (c) In the event unpaid assessments are paid in cash prior to their final maturity date, the minimum amount of the Reserve Fund may be reduced by the amount of the assessments so paid. (d) Prior to July 31st of the fiscal year next preceding the fiscal year in which the last unpaid assessment installment upon the assessments levied in such proceedings becomes due and payable, the Auditor shall determine the amount remaining in such Reserve Fund after all sums advanced have been reimbursed, and shall declare such amount, if any, to be surplus and order the same to be distributed and/or credited in the manner set forth in Section 10427.1 of the Streets and Highways Code, provided only that where all or any part of such assessments remain unpaid and are payable in installments, the amount apportioned to each parcel shall be credited against the last unpaid assessment installment and if the amount apportioned to each parcel exceeds the amount of said last installment, then such excess shall be credited against the next . preceding unpaid assessment installment or installments until exhausted. SECTION 9. Moneys in the Construction Fund, the Redemption Fund,and the Reserve Fund may be invested in any obligations which are then authorized by the laws of the State of California as investments for local agencies, and which mature on a date or dates prior to the need for such moneys. Any income -7- Resolution No. 586 or interest thereon shall accrue to and be deposited in the fund from which said moneys were invested. SECTION lO. The unpaid assessments, together'with the interest thereon, shall remain and constitute a trust fund for the redemption and payment of the principal of the Bonds and for the interest due thereon, which unpaid assess- ments shall be payable in annual series corresponding in number to the number of serial maturities of the Bond issued. An annual proportion of each unpaid assessment shall be payable in each year preceding the date of maturity of each of the several series of Bonds issued, sufficient tO pay the Bonds when due, and such proportion of each unpaid assessment coming due in any year, together with the annual interest thereon, shall be payable in the same manner and at the same time and in the same installments as general taxes on real property are payable, and become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interest after deliquency as do the general taxes on real property. A record of the several install- ments of principal and interest on said unpaid assessments which are to be collected in each year during the term of the Bonds shall be kept in the office of the Auditor. When the first interest coupon is for interest for a longer period than six months, the Auditor shall enter the amount thereof in the column on the assessment roll provided for the first installment'; and the balance in the column on the assessment roll provided for the second installment. All sums received from the collection of said unpaid assessments and of the interest and penalties thereon shall be placed in the Redemption Fund provided for herein, except that any percentage collected to represent the costs of such collection shall be retained by the County of San Diego. SECTION 11. In the event of a delinquency in thepayment of any installment of the assessment levied upon any property for the payment of the principal and interest of the Bonds, the District, in the absence of any other bidder, shall be the purchaser of delinquent property upon which any of said assess- ments are levied in like manner in which it becomes, or may become, the purchaser of property sold for the nonpayment of general District taxes, and shall pay and transfer from available surplus funds into the Redemption Fund the amount of any delinquent assessment installment and interest thereon. The -8- Resolution No. 586 District shall also pay and transfer from available surplus funds into the Redemption Fund the amount of any future delinquent assessment and interest thereon on such property pending redemption. Any amounts 'so advanced shall be recoverable upon sale or redemption of the property. The obligations imposed by this Section and by Sections 8800 to 8808, inclusive, of the Bond Law shall not be enforceable as to any available surplus funds of the District until all moneys in the Reserve Fund have been first exhausted. SECTION 12. In the event there are no moneys remaining in the Reserve Fund and no available surplus funds from which transfers may be made into the Redemption Fund pursuant to Sections 8 and ll hereof, the District hereby covenants with the holders of the Bonds that it will order and cause to be commenced and diligently prosecuted to completion, court foreclosure proceedings upon the lien of any and all delinquent assessments and interest, pursuant to and as provided in the Improvement Bond Act of 1915. Such fore- closure proceedings shall be commenced either (a) within 60 days of receipt of written demand of any Bondholder whose interest might be adversely affect- ed thereby, or (b) within 60 days following the date of'such a delinquency. SECTION 13. Each Bond outstanding may be redeemed and paid in advance of maturity upon the second day of January or july in any year by giving at least 60 days notice and by paying the principal amount thereof, together with a premium equal to 5% of the principal, plus interest, to the date of advanced maturity, unless sooner surrendered. in which event said interest will be paid to the date of payment, all in the amount and as provided in the Improvement Bond Act of 1915. The provisions of Part ll.1 of the Bond Law are applicable to the advance payment of assessments and to the calling of Bonds. The Auditor shall call for redemption and retire Bonds upon prepayment of assessments in amounts sufficient therefor, or whenever sufficient sur- plus funds are available therefor in the Redemption Fund. In selecting Bonds for retirement, the lowest numbered Bonds of the various annual maturities shall be chosen pro rata in a manner intended to disturb as little as possible -9- Resolution No. the relationship of unpaid assessments to Bonds outstanding. ADOPTED, SIGNED AND APPROVED this 23rd day of March, 1981, by the following roll call vote: AYES: Directors: Holm, Mason, Mahr, Ferguson NOES: Di rectors: None ABSTAIN: Directors: None ABSENT: Di rectors: Waller of Sa~Ma~rcos County Z District ATTEST: S ry, San M cos County stri -10-