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Reso 0604-06/1981 RESOLUTION NO. 604 RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN MARCOS COUNTY WATER DISTRICT, CALIFOR- NIA, REPEALING RESOLUTION NO. 586 AND PRO- VIDING FOR THE ISSUANCE OF IMPROVEMENT BONDS OF SAID DISTRICT FOR ASSESSMENT DISTRICT NO. 76-2 THEREOF IN A TOTAL PRINCIPAL AMOUNT OF $5,579,759.34 WHEREAS, by its Resolution No. 579, this Board of Directors con- firmed an assessment on lands lying within Assessment District No. 76-2 (Mt. Whitney) of said District; and WHEREAS, by its Resolution No. 381-A, this Board of Directors re- vised 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 dia- gram, as further revised, to be recorded and filed as required by the Munic- ipal Improvement Act of 1913; and WHEREAS, said assessment and diagram, as further revised, were re- corded and filed as ordered and required on February 26, 1981; and WHEREAS, the revised total assessment so confirmed was $5,688,198.76 of which $108,439.42 was paid in cash during the 30 days after the recordation of the assessments, and this Board of Directors has heretofore determined that the amount of assessments remaining unpaid after said 30 days is $5,579,759.34; 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 1315 to re- present assessments not paid within (30) days after the recordation of said assessments; and WHEREAS, this Board of Directors has heretofore adopted its Resolution No. 586 providing for the issuance of such bonds but now wishes to repeal said Resolution No. 586 and to make other provision for the issuance of such bonds; and WHEREAS, this Board of Directors deems it proper, and the necessity therefor appears, that bonds to represent said unpaid assessments be issued in the form and manner as hereinafter provided, NOW, THEREFORE, the Board of Directors of the San Marcos County Water District DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: SECTION 1. Resolution No. 586 entitled "RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN MARCOS COUNTY WATER DISTRICT, CALIFORNIA, PROVIDING FOR 329 Resolution No. 604~ Page 2 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" is hereby repealed. SECTION 2. Bonds in an aggregate principal amount of $5,579,759.34 shall be issued to represent assessments upon lands lying within Assessment District No. 76-2 which were not paid within thirty (30)days after the re- cordatiOn of the revised assessment and diagram referred to in the recitals hereof. The bonds authorized herein (the "Bonds") shall be designated "IMPROVEMENT BONDS, SAN MARCOS COUNTY WATER DISTRICT, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ASSESSMENT DISTRICT NO. 76-2 (MT. WHITNEY)", numbered consecutively from 1 through 1116, inclusive, dated June 30, 1982, in the denomination of $4,000 (except that Bond No. 1 shall be in the denomination of $4,759.34), bearing interest from their date at the rate or rates deter- mined 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 commencing 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 250,000.00 1985 300,000.00 1986 350,000.00 1987 450,000.00 1988 500,000.00 1989 500 000.00 1990 500 000.00 1991 500000.00 1992 500 000.00 1993 480000.00 1994 400 000.00 1995 400000.00 1996 200 000.00 SECTION 3. Both the principal of and the interest on the Bonds are payable at the offices of the San Marcos County Water District in San Marcos, California, or, at the option of the bondholder, at the principal office of the paying agent, Security Pacific National Bank in Los Angeles, California; pro- vided, however, that interest on any Bond which is 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 4. 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. 331 Resolution No. 604, Page 3 (INTEREST COUPON FORM) On the Second day of , 19 the SAN MARCOS COUNTY WATER DIS- TRICT, California, will pay to the bearer at the offices of the COUPON NO. District in San Marcos, Califor- nia or at the principal office of the paying agent, Security Pacific National Bank, in Los Angeles, California, (but only out of the redepmption fund created with respect to Assess- ment District No. 76-2) the sum shown hereon in lawful money of the United States of America, being'the interest then due on its Assessment District No. 76-2 Improvement Bond No. Dated: June 30, 1981 Auditor of the San Marcos County Water District (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 5. Substantially the following provisions for registration shall be printed on the reverse side of each Bond, and the Bonds shall be registrable, transferable, and dischargeable from registration as so provided: PROVISIONS FOR REGISTRATION This Bond may be registered in the name of any person as the registered owner hereof, only as to both principal and interest, and, if registered, may be dis- charged from registration as provided for herein. Each registration, transfer or discharge 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 un- matured coupons pertaining hereto shall be surrendered to the Auditor; and upon discharge from registration such unmatured coupons (to be reprinted, if necessary) shall be transferred to bearer by appropriate endorsement. 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 payment date, or to his order. Resolution No. 604, Page 4 333 Each request for registration, transfer or discharge 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 and must be accompanied by pay- ment of all reasonable charges of the Auditor (including any cost of reprinting the coupons and any tax or other governmental charge required to be paid with respect thereto). Date of In Whose Name Signature of Registration Registered Auditor SECTION 6. 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 Bonds in like manner. Such signing and sealing shall constitute and be a suffi- cient 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 7. Moneys received by the District from the cash pay- ments of assessments, contributions or any other source for the acquisition, construction 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 9 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 Construction Fund"). Disbursement from the Construction Fund shall be made exclusively to pay the costs of the acquisitions and/or improvements described in the aforesaid Resolution No. 550, as amended by Resolution No. 572, 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 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 the proportion which such con- tribution bears to the total amount of the assessment or supplemental assessment prior to the deduction of all such contributions. 343 Resolution No. 604, Page 5 SECTION 8. Any accrued interest received on account of the Sale of the Bonds,.all sums recieved from the collection of unpaid assessments and interest 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 12 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 first be applied to repayment to the DistriCt of any funds advanced by it for the purpose of paying for lands pur- chased 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 supplemental 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. SECTION9. 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: (a) Whenever there are insufficient funds in the Redemption Fund to meet the next maturing installment of principal of or inter- est on the Bonds due to delinquent installments of assessments, an amount necessary to pay such deficiency shall be transferred 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) In the event an unpaid assessment levied against any parcel is wholly or partially paid in cash prior to its final maturity date pursuant to the provisions of the Improvement Bond Act of 1915 for the advance payment of assessments, said unpaid assessment shall be proportionately reduced; and the amount of such proportional reduction shall equal the ratio of the total amount initially provided for the Reserve Fund to the original principal amount of the Bonds; and an amount equal to the reduction in said assessments shall be transferred from the Reserve Fund to The Redemption Fund. 347 Resolution NO. 604~'Page 6 (c) If at any time the amount of any interest earned by the investment of all or any portion of the Reserve Fund together with the principal amount in said Reserve Fund exceeds fifteen per- cent (15%) of the original principal amount of the Bonds less any discount thereon, such excess shall be credited upon the unpaid assessments in the manner set forth in Section 10427.1 of the Streets and Highways Code of the State of California; provided that, in order to comply with the current federal regulations in the event said excess cannot be credited to said unpaid assessments and expended therefor within thirteen (13) months of the date said excess has accrued, said excess amount shall be applied to the advance retire- ment of the Bonds in the manner provided in the Bond Law. Should said current applicable federal regulations be changed, the use of the excess must conform to said federal regulations. (d) Whenever the balance in the Reserve Fund is sufficient to retire all the remaining outstanding Bonds, collection of the principal and interest on the unpaid assessments shall be discon- tinued and the Reserve Fund shall be liquidated in retirement of the Bonds. In the event that the balance in the Reserve Fund at the time of each liquidation exceeds the amount required to retire all the Bonds then outstanding, the excess shall be disposed of in such other manner as may then be authorized by law. SECTION 10. Moneys in the Construction Fund, the Redemption Fund, and the Reserve Fund may be invested in any obligations which are then author- ized 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 or interest thereon shall accrue to and be deposited in the fund from which said moneys were invested. SECTION 11.. The unpaid assessments, together with the interest thereon, and together also with the proceeds from the sale of the Bonds, the moneys in all funds and accounts established pursuant to this Resolution, and the investments thereof, hereby are pledged to, and shall remain and constitute a trust fund for the redemption and payment of the principal of the Bonds and for the interest due thereon, subject to the provisions of this Resolution permitting the applciation thereof for the purposes and on the terms and con- ditions set forth herein. Said unpaid assessments shall be payable in annual series correspon- ding 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 Resolution No. 604, Page 7 times and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the general taxes on real property. A record of the several installments 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 Audi- tor shall enter the amount thereof in the column on the assessment roll pro- vided for the first installment, and the balance in the column on the assess- ment roll provided for the second installment. All sums received from the collection of said unpaid assessments and of the interest and penalties there- on shall be placed in the Redemption Fund provided for herein, except that any percentage collected to represent the costs of such collection shall be re- tained by the County of San Diego. SECTION 12. In the event of a delinquency in the payment of any installment of the assessment levied upon any property for the payment of the princpal 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 assessments 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 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. SECTION 13. The District hereby convenants 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 delin- quent assessments and interest, pursuant to and as provided in the Improvement Bond Act of 1915. Such foreclosure proceedings shall be commenced within 120 days following the date of such a delinquency. SECTION 14. 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 prepay- ment of assessments in amounts sufficient therefor, or whenever sufficient surplus funds are available therefor in the Redemption Fund. In selecting Bonds for retirement, the lowest numbered Bonds of the various annual matu- rities shall be chosen pro rata in a manner intended to distrub as little as possible the relationship of unpaid assessments to Bonds outstanding. Resolution No. 604, Page 8 3G3 ADOPTED, SIGNED AND APPROVED, this 29th day of June 1981, by the following vote: AYES: Directors: Holm, Mason, Waller, Mahr, Ferguson NOES: Directors: None ABSTAIN: Directors: None ABSENT: Directors: None ATTEST: ttMarc°s