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HomeMy WebLinkAbout1972-04-27 - Resolution No. 216b • 0 RESOLUTION NO. 216 RESOLUTION OF THE BOARD OF DIRECTORS OF YORBA LINDA COUNTY WATER DISTRICT, ORANGE COUNTY, CALIFORNIA, AUTHORIZING SAID DISTRICT TO ISSUE $750,000 NEGOTI- ABLE PROMISSORY NOTES, PROVIDING FOR THE SALE OF SAID NOTES AND FIXING TIME AND PLACE FOR TAKING BIDS THEREFOR WHEREAS, Yorba Linda County Water District (herein- after called the "District") is a public corporation duly organized and existing under the County Water District Law, Division 12 of the Water Code of the State of California; and WHEREAS, the District needs funds for District pur- poses, including funds to pay a portion of the construction costs of the East Side Reservoir; and WHEREAS, this Board of Directors deems it proper that notes in the amount of $750,000 be issued and that bids be invited for said notes and that if bids are satisfactory said notes be sold in the manner and at the time and place hereinafter set forth; NOW, THEREFORE, the Board of Directors of the Yorba Linda County Water District DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: SECTION 1. That the Board of Directors of said Dis- trict hereby finds and determines that funds are needed for immediate lawful District purposes, including funds for the payment of a portion of the cost of constructing the East Side Reservoir, and that in order to provide funds with which to meet such obligations, it is necessary and desirable that the District authorize the issuance of $750,000 negotiable -1- promissory notes pursuant to Sections 31304 et seq. of the Water Code of the State of California, which shall be general obligations of the District. SECTION 2. That said notes shall be dated June 1, 1972) shall be numbered, shall be in the denominations of, and shall mature as follows: Number Denomination Maturity Date 1 $150,000 June 1, 1973 2 $150,000 June 1, 1974 3 $150,000 June 1, 1975 4 $150,000 June 1, 1976 5 $1502000 June 1, 1977 That said notes shall bear interest at a rate to be hereinafter fixed, not to exceed seven percent (7%) per annum, said interest to be payable semiannually on December 1 and June 1 of each year from and after the date of said notes until said notes are paid. SECTION 3. That the total aggregate amount of said notes outstanding at any one time shall not exceed two percent (2%) of the assessed valuation of the taxable property in said District. SECTION 4. That the assessed valuation of the taxable property within the District for the fiscal year 1971-1972 is $54, 0523210. That the amount of $750,000 hereby authorized does not exceed two percent (2%) of the assessed valuation of the taxable property in said District for the fiscal year 1971-1972, and no other such notes of the District are outstanding. SECTION 5. That said notes shall constitute general obligations of the District for the payment of both principal and interest of which all property in the District subject to taxation by the District shall be taxed without limitation of rate or amount. -2- 0 0 The negotiable promissory notes are a general obligation of the District. If the revenues of the District are or in the judgment of the Board will probably be inadequate for any cause to pay the principal of or interest on said notes of the District, as it becomes due, the Board shall cause a tax to be levied in the same manner as for bonds of the District, sufficient to provide for such deficit and to pay the amount of such principal and interest that will become due before the proceeds of a tax levied at the next general tax levy will be available. Such ad valorem tax when collected shall be used for no other purpose other than the pay- ment of said notes and the interest thereon. All moneys derived from such tax shall be placed in a fund of the District designated, "NOTES, 1972, INTEREST AND REDEMPTION FUND", and until said notes and all interest thereon have been fully paid the moneys in said fund shall be used for no other purpose than the payment of said notes and the interest thereon. SECTION 6. That the District and this Board of Directors hereby promises and agrees and hereby represents that the proceeds from the sale of said notes will be expended only for the legally authorized purposes of the District. SECTION 7. That the notes evidencing such indebtedness shall be negotiable and in substantially the following form, to- wit: -3- • 0 YORBA LINDA COUNTY WATER DISTRICT ORANGE COUNTY, CALIFORNIA Negotiable Promissory Note No. FOR VALUE RECEIVED by the undersigned District, said District hereby acknowledges itself indebted and promises to pay to , or its order, on June 1, 19_, as hereinafter provided, the sum of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000), with interest thereon at the rate of percent ( per annum, payable semiannually on the first days of December and June of each year from and after June 1, 1972, until this note is paid. Should the interest not be so paid, it shall bear like interest as the principal. Both principal and interest are payable in lawful money of the United States of America at the office of the District, 4866 South Olinda, Yorba Linda, California. This note is issued under and in pursuance of and in conformity with the provisions of the County Water District Law, Division 12 of the Water Code of the State of California and in pursuance of the laws and Constitution of the State of California. 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 note have existed, happened and been performed in due time, form and manner as required by law. IN WITNESS WHEREOF, said YORBA LINDA COUNTY WATER DIS- TRICT has caused this note to be signed by the President of the Board of Directors and by the Secretary of the District, and the seal of said District affixed hereto this first day of June, 1972. YORBA LINDA COUNTY WATER DISTRICT By President, Board of Directors COUNTERSIGNED: Secretary, Yorba Linda County Water District (SEAL) -4- • SECTION 8. That the President of this Board is hereby authorized and directed to sign all of said notes, and the Secretary of this District is hereby authorized and directed to countersign said notes and to affix thereto the official seal of said District. SECTION 9. The notes are not callable prior to maturity. SECTION 10. That sealed proposals for the purchase of notes of said District in the amount of $750,000 be received by this Board of Directors at: YORBA LINDA COUNTY WATER DISTRICT 4866 S. Olinda Yorba Linda, California 92686 Attention: Jean E. Mathews, Secretary on May 11, 1972, up to the hour of 10:00 o'clock a.m. SECTION 11. 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; but failure, in whole or in part, to comply with this section shall not in any manner affect the validity of the sale of said notes. SECTION 12. That said notice shall be substantially as follows : -5- NOTICE INVITING BIDS ON $7502000 NEGOTIABLE PROMISSORY NOTES OF YORBA LINDA COUNTY WATER DISTRICT NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $750,000 par value general obligation negotiable promissory notes of YORBA LINDA COUNTY WATER DISTRICT of Orange County,California, will be received by the Board of Directors of said District at the place and up to the time below specified: TIME : 10:00 o'clock a.m. May 11, 1972 PLACE: Offices of the District 4866 S. Olinda Yorba Linda, California MAILED BIDS: Addressed to: JEAN E. MATHEWS, Secretary Yorba Linda County Water District 4866 S. Olinda Yorba Linda,California 92686 The bids will be opened and read at the aforementioned time and place. It is anticipated that the Board of Directors will award said notes at the regular meeting to be held at said time and place. ISSUE: $750,000 consisting of five notes, numbered 1 to 5, both inclusive, dated June 1, 1972, of the following denominations and maturity: Number Denomination Maturity Date 1 $150,000 June 1, 1973 2 $150,000 June 1, 1974 3 $150,000 June 1, 1975 4 $150,000 June 1, 1976 5 $150,000 June 1, 1977 INTEREST: The notes shall bear interest at a rate to be fixed upon the sale thereof but not to exceed seven percent (7%) per annum, payable semiannually on the first days of December and June. -6- • • PAYMENT: Said notes and the interest thereon are pay- able in lawful money of the United States of America at the office of the District, 4866 S. Olinda, Yorba Linda, California. CALLABLE: The notes are not callable before maturity. PURPOSE OF ISSUE: Said notes were authorized for law- ful District purposes, including the payment of a portion of the cost of constructing the East Side Reservoir. SECURITY: Said notes are issued pursuant to the County Water District Law, Division 12, of the Water Code of the State of California and are general obligations of the District, payable both principal and interest from an ad valorem tax to be levied on all taxable property in the District without limitation as to rate or amount. The negotiable promissory notesare a general obligation of the District. If the revenues of the District are or in the judgment of the Board will probably be inadequate for any cause to pay the principal of or interest on said notes of the District, as it becomes due, the Board shall cause a tax to be levied in the same manner as for bonds of the District sufficient to provide for such deficit and to pay the amount of such principal and interest that will become due before the proceeds of a tax levied at the next general tax levy will be available. TERMS OF SALE Interest Rate: The maximum rate bid may not exceed seven percent (7%) per annum, payable semiannually. Not more than one interest rate may be bid. Award: The notes shall be sold for cash only. All bids must be for not less than all of the notes hereby offered for sale and each bid shall state that the bidder offers par and -7- 0 0 accrued interest to the date of delivery, the premium, if any, and the interest rate not to exceed that specified herein, at which the bidder offers to buy said notes. 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 informative only and not a part of the bid. Highest Bidder: The notes will be awarded to the highest responsible bidder or bidders considering the interest rate 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 notes to the respective maturity dates thereof at the rate 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 (com- puted on a 360-day year basis) from the date of the notes to the date of delivery. 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 notes or rejecting all bids not later than twenty-six (26) 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 specified time if the bidder shall not have given to said Board notice in writing of the withdrawal of such proposal. -8- Place of Delivery: Delivery of the said notes will be made to the successful bidder at the offices of the District, 4866 S. Olinda, Yorba Linda, California, or at any other place mutually agreeable. Prompt Delivery, Cancellation for Late Delivery: It is expected that said notes will be delivered to the successful bidder within thirty (30) 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 District shall fail to execute the notes and tender them for delivery within sixty (60) 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 District, with the envelope and bid clearly marked: "PROPOSAL FOR YORBA LINDA COUNTY WATER DISTRICT, NOTES, 1972". Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of $1,500 payable to the order of the District, must accompany each proposal as a guaranty that the bidder, if successful, will accept and pay for said notes in accordance with the terms of his bid. The proceeds of the check accompanying any accepted proposal shall be applied on the pur- chase price or, if such proposal is accepted but not performed, unless such failure of performance shall be caused by any act or omission of the District, shall then be retained by the District. The check accompanying each unaccepted proposal will be returned promptly. Change in Tax Exempt Status: At any time before the notes are tendered for delivery the successful bidder may -9- disaffirm and withdraw the proposal if the interest received by private holders from notes 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 required to be taken into account in computing federal income taxes by the terms of any federal income tax law enacted sub- sequent to the date of this notice. Legal Opinion: The unqualified opinion of Rutan & Tucker, Bond Counsel, approving the validity of said notes will be furnished the successful bidder at or prior to the date of delivery of the notes, at the expense of the District. No Litigation Certificate: At the time of payment for and delivery of said notes the District will furnish the successful bidder a certificate that there is no litigation pending affecting the validity of the notes. INFORMATION AVAILABLE: Requests for information concern- ing the District should be addressed to: Mr. Ralph Shook General Manager Yorba Linda County Water District 4866 S. Olinda Yorba Linda, California 92686 GIVEN by order of the Board of Directors of YORBA LINDA COUNTY WATER DISTRICT adopted April 27, 1972. JEAN E. MATHEWS Secretary of the Board of Directors Yorba Linda County Water District -10- • ADOPTED, SIGNED AND APPROVED this 27th day of April, 1972. (SEAL) ATTEST : rest ent of orbs' a County Water District and of the Board of Directors thereof. Q~ Sec ary of Yorba Linda County Wat r District and of the Board of Directors thereof. -11- V i i STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) I, JEAN E. MATHEWS, Secretary of the Board of Directors of the Yorba Linda 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 thereof held on the 27th day of April, 1972, and that it was so adopted by the following vote: AYES : DIRECTORS MERWIN WAGNER FRED CLODT R. D. HASTINGS M. ROY KNAUFT , JR. RALPH A. MCGUIRE NOES: DIRECTORS NONE ABSENT: DIRECTORS NONE Seoetary of the Yorba Linda County Water District and of the Board of Directors thereof (SEAL) -12-