HomeMy WebLinkAbout1990-02-08 - Resolution No. 90-04YORBA LINDA WATER DISTRICT
RESOLUTION NO. 90-04
RESOLUTION OF THE BOARD OF DIRECTORS OF
THE YORBA LINDA WATER DISTRICT
DECLARING ITS INTENTION TO SELL BONDS
OF SAID DISTRICT FOR IMPROVEMENT
DISTRICT NO. 2 IN THE AMOUNT OF
$6,000,000, FIXING THE TIME AND PLACE
FOR TAKING BIDS AND DIRECTING
PUBLICATION OF NOTICE INVITING BIDS
WHEREAS, this Board of Directors deems it proper and
the necessity therefor appears that bids be invited for bonds
of YORBA LINDA WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 2 in
the amount of $6,000,000, and that if bids are satisfactory,
said bonds be sold in the manner and at the time and place
hereinafter set forth;
NOW, THEREFORE, the Board of Directors of YORBA LINDA
WATER DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER as
follows:
SECTION 1. That sealed proposals for the purchase
of bonds of said District for Improvement District No. 2 in the
amount of $6,000,000 be received by this Board of Directors at
Seidler-Fitzgerald Public Finance, Los Angeles, California on
March 8, 1990, up to the hour of 9:00 A.M., and if no
satisfactory bids are received on said date, bids will be
received on March 22, 1990 at the same time and place.
SECTION 2. That the Secretary of this Board is
hereby authorized and directed to publish a notice inviting
such sealed proposals by one insertion in The Bond Buyer, a
newspaper of general circulation, circulated within the State,
said publication to be at least fifteen (15) days prior to the
date of opening bids stated in said notice and shall be
substantially as follows:
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NOTICE OF SALE
$6,000,000
GENERAL OBLIGATION BONDS
OF YORBA LINDA WATER DISTRICT
ORANGE COUNTY, CALIFORNIA
FOR IMPROVEMENT DISTRICT NO. 2
1979 WATER BONDS, SERIES C
Sealed proposals will be received up to 9:00 o'clock A.M.,
Thursday, March 8, 1990 at Seidler-Fitzgerald Public Finance,
515 South Figueroa Street, Los Angeles, California 90071-3396,
for the purchase of $6,000,000 general obligation bonds of
YORBA LINDA WATER DISTRICT for Improvement District No. 2 1979
Water Bonds, Series C:
If a satisfactory bid is not received on said date, bids
will be received on March 22, 1990 at the same time and place.
The principal of and the interest on the bonds will be paid
from ad valorem taxes to be levied on all taxable property
within Improvement District No. 2, without limitation of rate
or amount, except to the extent said principal and interest may
be paid from revenues of said Improvement District as permitted
or required by law.
The bonds will mature serially on May 1 of each of the
years 1992 to and including 2010 as provided in the Resolution
of Issuance. Interest will be paid on May 1, 1991 and
semiannually thereafter on November 1 and May 1 of each year.
The legal opinion of Stradling, Yocca, Carlson & Rauth, a
Professional Corporation, Newport Beach, California will be
furnished to the successful bidder.
Further information may be obtained from Seidler-Fitzgerald
at the above address, telephone number (213) 624-4232.
/s/ William Workman
Secretary
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SECTION 3. That the Secretary of this Board is
hereby authorized and directed to cause to be furnished to
prospective bidders copies of a notice inviting proposals, the
bid form and the preliminary official statement relating to the
properties, operations and finances of said District and
Improvement District No. 2 thereof; but the failure, in whole
or in part, to comply with this section shall not in any manner
affect the validity of the sale of said bonds. That said
notice and bid form shall be substantially as follows:
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NOTICE INVITING BIDS ON $6,000,000
GENERAL OBLIGATION BONDS OF YORBA LINDA
WATER DISTRICT FOR IMPROVEMENT
DISTRICT NO. 2 1979 WATER BONDS, SERIES C
(BANK QUALIFIED)
NOTICE IS HEREBY GIVEN that sealed proposals for the
purchase of $6,000,000 par value general obligation bonds of
YORBA LINDA WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 2 1979
WATER BONDS, SERIES C 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: 9:00 A.M.
Thursday, March 8, 1990
PLACE: SEIDLER-FITZGERALD PUBLIC FINANCE
515 South Figueroa Street
Los Angeles, California 90071-3396
MAILED BIDS: YORBA LINDA WATER DISTRICT
c/o SEIDLER-FITZGERALD PUBLIC FINANCE
(at the above address)
If a satisfactory bid is not received on said date,
bids will be received on March 22, 1990 at the same time and
place.
OPENING OF BIDS: The bids will be received and opened
at 9:00 A.M. on March 8, 1990, and reported to the Board of
Directors of the District at its meeting later the same day.
ISSUE: $6,000,000 designated Bonds of YORBA LINDA
WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 2 1979 WATER BONDS,
SERIES C, shall be all in the denomination of $5,000 each or
any whole multiple thereof.
MATURITIES: The bonds
numerical order on May 1 in the
years as follows:
Years
Inclusive
Principal
Amount
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
$145,000
155,000
170,000
180,000
195,000
215,000
230,000
250,000
270,000
290,000
will mature in consecutive
amounts for each of the several
Years
Inclusive
Principal
Amount
2002
2003
2004
2005
2006
2007
2008
2009
2010
$310,000
335,000
365,000
395,000
425,000
460,000
495,000
535,000
580,000
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INTEREST: The bonds shall bear interest at a rate or rates
to be fixed upon the sale thereof but not to exceed 12% per
annum, payable on May 1, 1991 and semiannually thereafter on
November 1 and May 1.
PAYMENT: Said bonds will be payable in lawful money of the
United States of America at the Principal Corporate Trust
Office of BANK OF AMERICA NATIONAL TRUST AND SAVINGS
ASSOCIATION in San Francisco, California. Interest on the
bonds will be paid by check or draft mailed to the registered
owner.
REGISTRATION: The bonds will be fully registrable and may
be discharged from registration in accordance with the
provision in the resolution providing for the issuance of the
bonds.
REDEMPTION: Bonds maturing on or before May 1, 2000 are
not subject to call and optional redemption prior to maturity..
Bonds maturing on or after May 1, 2001 are subject to call and
optional redemption prior to their respective stated
maturities, at the option of the District, in whole, or in part
from the proceeds of any source of available funds, in inverse
order of maturity, and by lot within any such maturity if less
than all of the Bonds of such maturity are to be redeemed, on
any interest payment date on or after May 1, 2000, at the
respective redemption prices (expressed as percentages of the
principal amount of the Bonds to be redeemed) set forth below,
in each case together with accrued interest to the redemption
date:
REDEMPTION DATES REDEMPTION PRICES
May
1,
2000
and
November
1,
2000
102
%
May
1,
2001
and
November
1,
2001
101-
1/2%
May
1,
2002
and
November
1,
-2002
101
%
May
1,
2003
and
November
1,
2003
100-
1/2%
May
1,
2004
and
thereafter
100
%
SECURITY: The principal of and the interest on the bonds
will be paid from ad valorem taxes to be levied on all taxable
property within Improvement District No. 2, without limitation
of rate or amount, except to the extent said principal and
interest may be paid from revenues of said Improvement District
as permitted or required by law.
INTEREST RATE: The maximum rate bid
annum. Each rate bid must be a multiple
one percent (1/20%) or one-eighth of one
combination thereof. No bond shall bear
rate, and all bonds of the same maturity
rate. Each bond must bear interest at tl
may not exceed 12% per
of one-twentieth of
percent (1/8%) or any
more than one interest
shall bear the same
ae rate specified in
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the bid from its date to its fixed maturity date. The rate on
any maturity or group of maturities shall not be more than 3%
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 offered for
sale and each bid shall state that the bidder offers accrued
interest to the date of delivery; the purchase price, which.
must be par or may be par with a premium, 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
its 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 bonds will be awarded to the highest
responsible bidder or bidders considering the interest rate or
rates specified and the premium offered, if any. Subject to
the foregoing condition, 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 the bonds to the respective maturity dates
thereof at the 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 from
the date of the bonds to the date of delivery, computed on a
360-day year basis. 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 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.
PLACE OF DELIVERY: Delivery of said bonds will be made to
the successful bidder at Stradling, Yocca, Carlson & Rauth,
Newport Beach, California or, at the option of the successful
bidder, at such other place as may be agreed upon by the
District and the purchaser.
PROMPT DELIVERY: CANCELLATION FOR LATE DELIVERY: It is
expected that said bonds will be delivered to the successful
bidder within 30 days from the date of sale thereof. The
successful bidder shall have the right, at its option, to
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cancel the contract of purchase if the District shall fail to
execute the bonds and tender them for delivery within 60 days
from the date herein fixed for the receipt of bids, and in such
event the successful bidder shall be entitled to the return of
the check accompanying his/her 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 WATER
DISTRICT FOR IMPROVEMENT DISTRICT NO. 2 1979 WATER BONDS,
SERIES C".'
BID CHECK: A certified or cashier's check on a responsible
bank or trust company in the amount of $60,000 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 bonds in accordance with the terms of his/her bid.
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 the District, shall then be cashed
and the proceeds retained by the District. The check
accompanying 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 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
or be required to be taken into account in computing any
federal income taxes by the terms of any federal income tax law
enacted subsequent to the date of this notice.
LEGAL OPINION: The unqualified opinion of Stradling,
Yocca, Carlson & Rauth, a professional corporation, approving
the validity of said bonds and stating that under existing
statutes, regulations, rulings and court decisions, interest on
the bonds is excluded from gross income for federal income tax
purposes, and that such interest is also exempt from personal
income taxes of the State of California under present state
income tax laws, will be furnished the successful bidder at or
prior to the date of delivery of the bonds, at the expense of
the District. A copy of the legal opinion certified by an
officer of the District by his/her facsimile signature will be
printed on the back of each bond without cost to the successful
bidder.
CUSIP NUMBERS: It is anticipated that CUSIP numbers will
be printed on the bonds, but neither the failure to print such
numbers on any bond nor any error with respect thereto shall
constitute cause for a failure or refusal by the purchaser
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thereof to accept delivery of and pay for the bonds. All
expenses of printing CUSIP numbers on the bonds shall be paid
by the District, but the CUSIP Service Bureau charge for the
assignment of said numbers shall be paid by the purchaser.
UNDERWRITERS CLOSING CERTIFICATE: The accepted bidder
shall deliver such certificates to the District as may be
required by bond counsel dated the date of purchase of the
bonds indicating: (i) the initial offering prices at which a
substantial portion of the bonds (not less than 10% of each-
maturity of the bonds) was sold to the public (excluding bond
houses, brokers, or similar persons or organizations acting in
the capacity of underwriters or wholesalers), (ii) the "yield"
on the bonds as calculated in accordance with the Internal
Revenue Code of 1986, and (iii) such other information as may
be required to assist the District in filing of the required
Internal Revenue Service Form 8038-G for the bonds.
CALIFORNIA DEBT ADVISORY COMMISSION FEE: The successful
bidder will be required, pursuant to State of California law,
to pay any fees to the California Debt Advisory Commission
("CDAC"). CDAC will invoice the successful bidder after the
closing of the bonds.
CLOSING DOCUMENTS: In addition to the opinion of bond
counsel referred to above, at the time of payment for the
delivery of the bonds, the District will furnish the successful
bidder the following documents, all to be dated as of the date
of delivery:
1. NonArbitrage Cgftificate A certificate of an
appropriate officer of the District certifying
that, on the basis of facts, estimates and
circumstances in effect at the time of delivery
of the bonds, it is not expected that the
proceeds of the bonds will be use in a manner
that will cause the bonds to be arbitrage bonds.
2. No Litigation Certificate A certificate of an
appropriate officer of the District certifying
that there is no litigation pending, or, in the
best of such officer's knowledge, threatened
against the District affecting the validity of
the bonds.
3. Signature Certificate A certificate of
appropriate officers of the District indicating
that they have signed the bonds by manual or
facsimile signature and that they were duly
authorized to execute the same.
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4. Treasurer's Receipt The receipt of the
Treasurer of the District showing that the
purchase price of the bonds, including accrued
interest to the date of delivery, if any, has
been received by the District.
5. Certificate C ncerning Official Stateme t A
certificate o~ an appropriate officer o the
District, acting in such person's official and
not personal capacity, to the effect that at-the
time of the sale of the bonds and at all times
subsequent thereto up to and including the time
of delivery of the bonds, the Official Statement
relating to the bonds did not contain any untrue
statement of a material fact or omit to state a
material fact necessary to make the statements-
therein, in light of the circumstances under
which they were made, not misleading.
OFFICIAL STATEMENT: The District has prepared the
Preliminary Official Statement and deems it to be final and
complete as of its date within the meaning of Securities
Exchange Act Rule 15c2-12. The District will supply such
number of copies of the final version of the Official Statement
to the successful bidder without cost and within seven business
days after the day of the acceptance of the successful bid as'
said bidder may reasonably request.
INFORMATION AVAILABLE: Requests for information concerning
the District should be addressed to:
SEIDLER-FITZGERALD PUBLIC FINANCE
515 South Figueroa Street
Los Angeles, California 90071-3396
Telephone: (213) 624-4232
GIVEN by order of the Board of Directors of YORBA
LINDA WATER DISTRICT adopted on February 8, 1990.
v /I
O#VL
Secretary of tRe Boa
of Yorba Linda Water
ors
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•
PROPOSAL FOR THE PURCHASE OF $6,000,000
YORBA LINDA WATER DISTRICT
IMPROVEMENT DISTRICT NO. 2
1979 WATER BONDS, SERIES C
Board of Directors
Yorba Linda Water District
c/o Seidler-Fitzgerald Public Finance
515 South Figueroa Street, Sixth Floor
Los Angeles, California 90071-3396
Gentlemen:
We offer to purchase YORBA LINDA WATER DISTRICT IMPROVEMENT DISTRICT NO. 2
1979 WATER BONDS, SERIES C in the amount of $6,000,000 in the denomination of
$5,000 or any integral multiple thereof, and maturing and bearing interest as
follows:
Years
Principal
Years
Principal
Inclusive
Amount
Inclusive
Amount
1992
$145,000
2002
$310,000
1993
155,000
2003
335,000
1994
170,000
2004
365,000
1995
180,000
2005
395,000
1996
195,000
2006
425,000
1997
215,000
2007
460,000
1998
230,000
2008
495,000
1999
250,000
2009
535,000
2000
270,000
2010
580,000
2001
290,000
(plus accrued interest from March 1, 1990)
We will pay therefor the principal amount thereof, plus a premium of
$ plus interest accrued on the bonds to the date of delivery.
This proposal is made subject to all the terms and conditions of the Notice
Inviting Bids for said bonds dated , all of which terms and
conditions are made a part hereof as fully as though set forth in full in this
proposal.
This proposal is subject to acceptance, in whole or in part, within twenty-six
(26) hours after expiration of the time for the receipt of proposals, as
specified in said Notice.
There is enclosed herewith a certified or cashier's check for $60,000 payable
to the order of the District.
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• •
We hereby request that printed copies of the Official Statement
pertaining to the bonds be furnished us in accordance with the terms of said
Notice Inviting Bids.
The following is our computation made as provided in the Notice Inviting Bids,
but not constituting any part of the foregoing, of the net interest cost under
the foregoing proposal:
Gross Interest Cost $
Less Premium $
Net Interest Cost $
Net Interest Rate o
Authorized Signature(s):
Firm(s) :
Address:
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t
SECTION 4. The District does not reasonably anticipate
to issue in excess of $10,000,000 tax exempt obligations during
the year 1990. The Bonds are designated as "qualified tax
exempt obligations" as provided in Section 265(b) of the
Internal Revenue Code of 1986, as amended.
ADOPTED, SIGNED AND APPROVED this 8th day of February, 1990.
/66 Prethe Bo r of Directors
of Yorba Linda Wa r District
( SEA. )
ATZESTi-
Secretary of the Boa
of Yorba Linda Water
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M/ ~1~
M7
Directors
strict
-13-
SECRETARY'S CERTIFICATE
I, WILLIAM WORKMAN, Secretary of the Yorba Linda Water
District, hereby certify that the foregoing is a full, true and
correct copy of a resolution duly adopted at a regular meeting
of the Board of Directors duly and regularly held on
February 8, 1990, of which meeting all of the members of said
Board had due notice and at which a majority thereof was
present; and at said meeting said resolution was adopted by the
following called vote:
Aye s : '4 Cl w,l -Kmm, LaJ Gamwe
Noes: ~j
Absent: Abstain: Q
I further certify that I have carefully compared the same
with the original resolution on file and of record in my
office, that the foregoing is a full, true and correct copy of
said original resolution; and that the foregoing has not been
amended, modified or rescinded since the date of its adoption,
and is now in full force and effect.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official seal of said District on February 8, 1990.
Secretary of he Y rba *inda
Water District
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