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Reso 0432-07/1976 RESOLUTION NO. 432 RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN MARCOS COUNTY WATER DISTRICT, CALIFORNIA, DECLARING ITS INTENT~ ~ TO SELL BONDS OF ASSESSMENT DISTRICT NO. 75-1 AND FIXING TIME AND PLACE FOR -- RECEIVING BIDS WHEREAS, by Resolution No. 430 of the San Marcos County Water District, this Board of Directors confirmed an assessment on lands lying within Assessment District No. 75-1 of the San Marcos County Water District, and by said resolution ordered the assessment and diagmm recorded in the office of the Superintendent of Streets of said District and in the office of the County Recorder of the County of San Diego, California; and WHEREAS, the total assessment so confirmed was $2,945,000.00; and WHEREAS, by Resolution No. 402 of said District this Board of Directors resolved that serial bonds, bearing interest at a rate not to exceed eight percent (8%) per annum shall be issued under and as provided in the Improvement Bond Act of 1915, i.e., Division 10 of the California Streets and Highways Code, to represent assessments not paid within thirty (30) days after recordation of said assessment; and WHEREAS, this Board of Directors wishes to obtain bids for such bonds in advance of the expiration of said thirty (30) days so that such bonds (in an amount equal to said unpaid assess- ments) may be issued as soon thereafter as possible; NOW, THEREFORE, the Board of Directors of the San Marcos County Water District DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: -1- SECTION 1. That bonds of said District in a total amount not to exceed $2,945,000.00 be issued and sold to represent assess- ments not paid within thirty (30) days after recordation of the assessment and diagram. Said bonds shall be designated "IMPROVE- MENT BOND, SAN MARCOS COUNTY WATER DISTRICT, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ASSESSMENT DISTRICT NO. 75-1, SERIES NO. 1." The bonds will be dated September 1, 1976, and will be issued in denominations of $5,000, except for Bond Number 1, which may be issued in an amount other than $5,000. Said bonds shall bear interest at a rate to be hereafter fixed, but not to exceed eight percent (8%) per annum. Interest on the bonds for four months and one day will be payable on January 2, 1977. Thereafter interest will be payable semi-annually on July 2 and January 2 of each year. Said bonds and the interest thereon shall be payable in lawful money of the United States of America at the office of the Treasurer of the District in San Marcos, California, or at the Security Pacific National Bank in the Cities of Los Angeles and San Francisco, California. Said bonds shall be payable to bearer. The bonds shall mature over a period commencing July 2, 1977, and ending July 2, 1994, and in such amounts that, to the greatest extent possible, annual payments of principal and interest over the term of the bonds shall be approximately equal. SECTION 2. That the Treasurer and the Secretary of the San Marcos County Water District are hereby authorized and directed to sign all of said bonds; and said Treasurer is hereby authorized and directed to sign the interest coupons affixed thereto and to number said interest coupons consecutively. The signature of said Treasurer on the bonds and coupons may be by an engraved, printed or lithographed signature. The seal of the District may be placed on said bonds in like manner. -2- SECTION 3. That said bonds shall be issued in sub- stantially 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: (INTEREST COUPON FORM) On the Second Day of , 19 , the SAN MARCOS COUNTY WATER DISTRICT, California, will pay to the bearer COUPON NO. at the office of the Treasurer of the District in San Marcos, Cali- fornia, or at the in the Cities of Los Angeles and San Francisco, California, the sum of $ in lawful money of the United States of America, being the in- terest then due on its Improvement Bond No. Dated September 1, 1976 Treasurer 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 4. That 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 persons as the registered owner thereof, both as to prin- cipal and interest, and, if registered may be discharged from registration. Each registration, transfer after registration, or discharge from registration of this bond shall be entered by the Treasurer in books kept by him for the purpose and noted by him in the registration blank below. Upon regis- tration as to both principal and interest, all unmatured coupons pertaining herto shall be surrendered to the Treasurer and may be preserved. -3- So long as this bond is registered no transfer here- of shall be valid for any purpose unless made by the regis- tered 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 as to both principal and interest, 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. If this bond is registered as to both principal and interest and if it is discharged from registration, there shall be attached hereto coupons representing interest hereon to become due thereafter to the date of maturity hereof. In lieu thereof, and upon surrender and cancellation hereof, the Treasurer in his discretion may issue in exchange therefor a new bond, with such coupons attached, identical with this bond, except for the previous notations on the registration blank hereon, and except that the signatures on the new bond shall be those of the persons holding the office at the time of affixing such signatures. The issuance of any such new bond, or new coupons, shall be at the expense of the registered owner. Each discharge hereof from registration shall be effected by an entry on the registry books, and a notation in the blank below, that this bond is payable to bearer, whereupon this bond shall become an unregistered bearer instrument, negotiable by delivery as if it had never been registered. Each request for registration, transfer or discharge must be in form satisfactory to the Treasurer 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 Treasurer SECTION 5. That the proceeds of the sale of said bonds shall forthwith be placed in a fund of said District hereby created and designated "Assessment District No. 75-1 Fund" and the moneys in said fund shall be applied exclusively to the con- struction and acquisition of the improvements described in Resolution No. 402 of said District. -4- SECTION 6. That this Board of Directors does hereby call for sealed bids on the said bonds proposed to be issued to be received up to the time specified in the notice hereinafter set forth. SECTION 7. That the Secretary shall cause a notice in- viting such bids to be given by mailing copies thereof to such persons and investment bankers known by the Secretary to have an interest in purchasing such bonds. Said notice shall be in substantially the following form: NOTICE INVITING BIDS ON BONDS OF THE SAN MARCOS COUNTY WATER DISTRICT, CALIFORNIA, ASSESSMENT DISTRICT NO. 75-1 NOTICE IS HEREBY GIVEN that a representative of the Board of Directors of the San Marcos County Water District, County of San Diego, State of California, will receive sealed bids for the purchase of the following described bonds at the office of the District, 788 San Marcos Boulevard, San Marcos, California 92069, up to the hour of 3:00 p.m., August 16, 1976. Said bids will be opened at said time and place. The bonds to be sold are bonds to be issued to represent unpaid assessments levied upon the lands within Assessment Dis- trict No. 75-1 of said District, to pay the cost of the acqui- sition Of certain property and the construction of certain water- works system improvements, appurtenances and all appurtenant work in connection therewith within said Assessment District, which assessments have been made under the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code. Said bonds will be issued under the Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code; and, except as otherwise provided in the Municipal Improvement Act of 1913, the provisions of said Division 10 apply to said bonds and govern as to the issuance, collection and enforcement thereof. The total assessment levied was $2,945,000.00 and bonds will be issued and sold[ to represent said unpaid assessments. The exact principal amount of the bonds to be issued shall be determined on August 30, 1976, said date being after the cash collection period. In any event the bonds shall mature over a period commencing July 2, 1977, and ending July 2, 1994, and in such amounts that, to the greatest extent possible, annual pay- ments of principal and interest over the terms of the bonds shall be approximately equal. Said bonds will be designated "IMPROVE- MENT BOND, SAN MARCOS COUNTY WATER DISTRICT, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ASSESSMENT DISTRICT NO. 75-1, SERIES NO. 1." The total amount of bonds to be sold will be up to $2,945,000.00. Said bonds will be dated September 1, 1976, and bear interest from that date at a rate not to exceed eight percent (8%) per annum. Interest on the bonds for four months and one day will be payable on January 2, 1977. Thereafter interest will be pay- able semi-annually on July 2 and January 2 of each year. For purposes of calculating the best bid for said bonds, the following sample maturity schedule (which assumes that bonds will be issued to represent the full amount of the assessments) shall be used: -6- Principal Maturing Year July 2 1977 $100,000 1978 70,000 1979 75,000 1980 80,000 1981 85,000 1982 95,000 1983 100,000 1984 110.000 1985 120.000 1986 125.000 1987 135.000 1988 145000 1989 160.000 1990 170.000 1991 185.000 1992 200000 1993 215.000 1994 235.000 1995 255.000 1996 275.000 In each of said bonds the right will be reserved to redeem such bond before maturity, on the 2nd day of January or July, in any year by giving notice as provided by law and by paying principal and accrued interest, together with a premium equal to five percent (5%) of the principal. TERMS OF SALE Interest Rate: The maximum rate bid may not exceed eight percent (8%) per annum, payable semi-annually. Each rate bid must be a multiple of 1/20th of 1%. No bonds shall bear more than one interest rate and all bonds of the same maturity shall bear the same rate. Each bond must bear interest at the rate specified in the bid from its date to its maturity date. Only one coupon will be attached to each bond for each installment of interest thereon, and bids providing for additional or supplemental coupons will be rejected. The rate on any maturity or group of maturities shall not be more than two percent (2%) higher than the interest rate on any other maturity or group of maturities. Denomination: The bonds will be issued in denominations of $5,000, except for Bond Number 1, which may be issued in an amount other than $5,000. -7- Security: Funds for payment of principal and interest will be derived from installment payments on unpaid fixed lien assessments within Assessment District No. 75-1. The install- ments will be collected on the same tax roll on which general taxes of the county are collected. The installments are pay- able, become delinquent, bear penalties and interest and are subject to the same provisions for recovery as are applicable to properties for nonpayment of general county taxes. In the event insufficient moneys are in the redemption fund established for payment of bond principal and interest, the Board of Directors is obligated to advance the amount of any such delinquency to the redemption fund from available funds of the District. In the event such funds are not available, the Board of Directors is obligated to levy a tax continuing each year at a rate up to $.10 per $100 of taxable assessed valuation under its juris- diction until the amount of such delinquencies, penalties and costs are fully paid. Registration: Coupon bonds may be registered only as to principal and interest. Award: The bonds may be sold at a price equal to their par value or above or below their par value, except that the maximum discount bid shall not exceed an amount equal to eight percent (8%) of the par value of the bonds. The bonds shall be sold for cash only. All bids must be for not less than all of the bonds hereby offered for sale; and each bid shall state the total price offered for the bonds, the premium or the discount, if any, and the interest rate or rates, not to exceed that speci- fied herein, at which the bidder offers to buy said bonds, and accrued interest to the date of delivery. 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 con- sidered informative only and not a part of the bid. For purposes of this computation, bidders are to assume that the maximum aggregate amount of bonds shall be issued. -8- Highest Bidder: The bonds will be awarded to the highest responsible bidder or bidders considering the interest rate specified and the premium or the discount 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 respective maturity dates thereof at the coupon rate specified in the bid. The net cost to the District on any bid or bids off- ering less than par will be determined by adding the amount of the discount bid to the total amount of interest which the District would be required to pay from the date of said bonds to the respective maturity dates thereof at the coupon rate speci- fied in the bid. The award will be made to the bidder or bidders offering the lowest net cost to the District. In the event that two or more bidders have bid the same lowest net cost to the Dis- trict, the award shall be made by lot. 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 (26) hours after the expiration of the time herein prescribed for the re- ceipt 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 District notice in writing of the withdrawal of such proposal. -9- Place of Delivery: Delivery of said bonds will be made to the successful bidder at the office of the District, 788 San Marcos Boulevard, San Marcos, California 92069, or at any other place agreeable to the District and the successful bidder. Prompt Delivery; Right of Cancellation: Delivery will be made as soon as the bonds can be prepared. In the event the District shall fail to execute the bonds and tender the same for delivery within sixty (60) days from the date of sale thereof, the successful bidder shall have the right to cancel the contract of purchase, at his option; and, in case of such cancellation, the District shall return to the successful bidder the deposit which accompanied his bid. Form of Bid: Each bid, together with the bid check, must be in a sealed envelope, addressed to the San Marcos County Water District, 788 San Marcos Boulevard, San Marcos, California 92069, with the envelope and bid clearly marked: "Proposal for San Marcos County Water District Bonds, Assessment District 75-1" Bid Check: A certified or cashier's check on a respon- sible bank or trust company in the amount of $10,000 payable to the order of the San Marcos County Water District, shall accompany each proposal as a guarantee that the bidder, if successful, will accept and 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 proposal is accepted but not performed, unless such failure of performance shall be caused by any act or omission of said Dis- trict, shall then be retained by said District. The check accomp- anying each unaccepted proposal will be returned promptly. -10- Change in Tax Exempt Status: At any time before the bonds are tendered for delivery the successful bidder may disaffirm and withdraw the proposal if the interest received by private holders from bonds of the same type and character shall be declared to be taxable income under present federal income tax laws, either by a ruling of the Internal Revenue Service or by a decision of any federal court, or shall be declared taxable by the terms of any federal income tax laws enacted subsequent to the date of this notice. Legal Opinion: The opinion of Rutan & Tucker, Attorneys, approving the validity of said bonds, will be furnished to the successful bidder at or prior to the date of delivery of the bonds, at no expense to the bidder. No Litigation Certificate: At the time of payment for and delivery of said bonds, the District will furnish the suc- cessful bidder a certificate that there is no litigation pending affecting the validity of the bonds. Information Available: Requests for information con- cerning the assessment district should be addressed to: San Marcos County Water District 788 San Marcos Boulevard San Marcos, California 92069 Stone & Youngberg Municipal Financing Consultants, Inc. 1541 Wilshire Boulevard Suite 402 Los Angeles, California 90017 GIVEN by order of the Board of Directors of the San Marcos County Water District, County of San Diego, California. Adopted on the 28th day of July, 1976. -11- ADOPTED, SIGNED AND APPROVED, this 28th day of July, 1976. (SEAL) President of the Board of Directors of the San Marcos County Water District ATTEST: /5~c tary of the Marcos County , ' ' ard of -12-