HomeMy WebLinkAbout1993-09-20 - Resolution No. 93-230
RESOLUTION NO. 93-23
RESOLUTION OF THE BOARD OF DIRECTORS
OF YORBA LINDA WATER DISTRICT
AUTHORIZING THE SALE OF APPROXIMATELY $6,170,000 PRINCIPAL
AMOUNT OF IMPROVEMENT DISTRICT BONDS NO. 1 OF THE YORBA LINDA
WATER DISTRICT AND APPROVING CERTAIN DOCUMENTS IN
CONNECTION THEREWITH
WHEREAS, Yorba Linda Water District , a county water district organized and existing under
the laws of the State of California (the "District"), is authorized pursuant to Articles
9 and 11, Division 2, Title 5 of the Government Code of the State of California to
refund the District's Improvement District No. 1 Water Bonds Series A and Series
B Bonds (the "Refunded Bonds"); and
WHEREAS, the District wishes to cause the sale, execution and delivery of approximately
$6,170,000 (the exact amount to be determined on or before the sale date of the
Bonds based on the amount needed to refund the Refunded Bonds), in principal
amount of bonds to be designated "Yorba Linda Water District, Improvement
District No. 1 Refunding Bonds" (the Bonds") said Bonds to be secured by ad
valorem taxes to be levied in Improvement District No. 1; and
WHEREAS, a preliminary official statement with respect to the Bonds (the "Preliminary Official
Statement"), has been prepared by Bartle Wells Associates; and
WHEREAS, there then has been presented to this Board of Directors copies of the Preliminary
Official Statement and certain other documents relating to the foregoing;
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of Yorba Linda Water
District DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. The foregoing recitals, and each of them, are true and correct.
SECTION 2. That sealed bids for the sale of Bonds in the amount of approximately $6,170,000
be received by this Board of Directors on Thursday, October 14, 1993 at the offices
of Bartle Wells Associates, 1636 Bush Street, San Francisco, California 94109, up
to the hour of 10:00 a.m. Pacific Time.
SECTION 3. Stradling, Yocca, Carlson & Rauth, Bond Counsel, is authorized and directed to
publish a notice inviting such sealed bids, in substantially the form set forth in
Exhibit A hereof, by one insertion in THE BOND BUYER, a newspaper of general
circulation, circulated within the State of California, said publication to be at least
fifteen (15) days prior to the date of the opening of the bids stated in said notice.
SECTION 4. The preparation and distribution of the Preliminary Official Statement in
substantially the form presented at this meeting, with such changes, insertions and
omissions as may be approved by the General Manager of the District is hereby
approved. The General Manager of the District is hereby authorized to sign a
certificate pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act
of 1934 relating to the Preliminary Official Statement. The General Manager of the
District is further authorized and directed to approve, execute and deliver the final
Official Statement with respect to the Bonds, which final Official Statement shall be
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in the form of the Preliminary Official Statement with such changes, insertions and
omissions as may be approved by the General Manager of the District, such
approval to be conclusively evidenced by the execution and delivery thereof. Bartle
Wells Associates is hereby authorized to distribute copies of the Preliminary Official
Statement, together with the notice inviting bids, in substantially the form set forth
in Exhibit B hereof, to persons who may be interested in the initial purchase of
Bonds and is directed to deliver copies of the final Official Statement to all actual
initial purchasers of the Bonds.
SECTION 5. Bank of America National Trust and Savings Association is appointed Paying
Agent, with the powers and duties of said office as shall be set forth in the
Resolution of Issuance of the Bonds to be adopted by the Board of Directors on
October 14, 1993.
SECTION 6. The District hereby determines that the Bonds are are qualified tax-exempt
obligations pursuant to Section 265(b) of the Code and finds that the reasonable
anticipated amount of qualified tax-exempt obligations which will be issued by the
District and all of its subordinate entities during the 1993 calendar year will not
exceed $10,000,000.
SECTION 7. The General Manager of the District is hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any and all documents
necessary or proper for carrying out the sale of the Bonds contemplated by this
Resolution.
SECTION 8. This Resolution shall take effect from and after its date of adoption.
PASSED AND ADOPTED this 20th day of September, 1993 by the following called vote:
AYES: 5 - Sterling Fox, Carl Scanlin, Paul Armstrong, Michael Beverage
NOES: O and Arthur Korn.
ABSENT: O
ABSTAIN: 0
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Sterling L. Fox, President
Yorba Linda Water District
A
Wiltiam J. Robertson, Secretary,
Yorba Linda Water District
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EXHIBIT A
NOTICE OF INVITING BIDS
$6,170,000
YORBA LINDA WATER DISTRICT
IMPROVEMENT DISTRICT NO. 1 REFUNDING BONDS
YORBA LINDA, CALIFORNIA
Project: Improvement District No. 1 Refunding Bonds are being issue to refund
Improvement District No. 1 1978 Water Bonds, Series A and Series B
Bonds
Bonds Dated: October 15, 1993
Maturities: Serial Bonds Maturing May 1 in each of the years 1994 to 2004 inclusive
Interest Payable: May 1 and November 1 of each year, beginning May 1, 1994
Legal Opinion: Stradling, Yocca, Carlson & Rauth, a Professional Corporation
BIDS ARE TO BE RECEIVED ON OR BEFORE THURSDAY THE
14TH OF OCTOBER, 1993
at 10:00 A.M., PACIFIC TIME
AT THE OFFICES OF:
BARTLE WELLS ASSOCIATES
1636 BUSH STREET
SAN FRANCISCO, CA 94109
For further information, please contact the following
BARTLE WELLS ASSOCIATES
(415) 775-3113
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EXHIBIT B
YORBA LINDA WATER DISTRICT
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OFFICIAL NOTICE INVITING BIDS
$6,170,000
IMPROVEMENT DISTRICT NO. 1 REFUNDING BONDS
NOTICE IS HEREBY GIVEN that sealed bids will be received by the Yorba Linda Water
District (the "District") for the purchase of $6,170,000 principal amount of the District's
Improvement District No. 1 Refunding Bonds (the "Bonds"), more particularly described below,
at the place and up to the time below specified:
Time: 10:00 a.m. Pacific Time
October 14, 1993
Place: At the offices of Bartle Wells Associates
1636 Bush Street
San Francisco, CA 94109
415/775-3113
Mailed Sealed Bids Addressed to:
Yorba Linda Water District
c/o Bartle Wells Associates
1636 Bush Street
San Francisco, CA 94109
Faxed Bids: 415/775-4123, provided a signed original bid form is received by Bartle Wells
Associates prior to the bid opening. Neither the District nor Bartle Wells
Associates is responsible for any problem in receipt of bids by fax.
Opening of Bids and Award of Bonds: The bids will be opened at 10:00 a.m. Pacific Time on
October 14, 1993, at the above-stated location, and will be presented at the Board meeting of the
Yorba Linda Water District to be held on that day. Late bids will be returned unopened.
Denomination: The Bonds will be issued in denominations of $5,000 or integral multiple of
$5,000, as specified by the successful bidder.
Date: The Bonds will be dated October 15, 1993.
Interest Payment: Interest will be paid on May 1 and November 1 of each year, beginning
May 1, 1994.
Maturities: The Bonds will mature as follows:
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Due Date Principal Amount
1994
$330,000
1995
485,000
1996
500,000
1997
520,000
1998
540,000
1999
565,000
2000
590,000
2001
615,000
2002
640,000
2003
675,000
2004
710,000
Prepayment:
Optional Prepayment. The Bonds are not subject to Optional Prepayment.
Payment: The Bonds will be issued as fully registered bonds and, when issued, will be
registered in the name of Cede & Co., as nominee of The Depository Trust Company, New
York, New York ("DTC"). DTC will act as securities depository for the Bonds. Individual
purchases of the bonds will be made in book-entry form only, in principal amounts of $5,000, or
any integral multiple thereof. Payment of principal of, redemption price, if applicable, and
interest on the Bonds are to be made to purchasers by DTC through the DTC participants (as
such term is used in the official statement). Purchasers will not receive physical delivery of
Bonds purchased by them.
Purpose of Issue: Proceed of the Bonds will be used to refund Improvement District No. 1
1978 Water Bonds, Series A and Series B Bonds.
Security: The Bonds are general obligations of the Improvement District and (unless otherwise
provided from revenues) the Board has power and is obligated to cause the County of Orange to
levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all property
within the Improvement District subject to taxation by the District, without limitation as to rate or
amount.
Paying Agent: Bank of America National Trust and Savings Association, Los Angeles,
California, as Paying Agent.
Tax-Exempt Status: The legal opinion of Stradling, Yocca, Carlson & Rauth, a Professional
Corporation, Newport Beach, California, with respect to the validity of the Bonds and that
interest on the Bonds is excludable from gross income for federal income tax purposes and from
present State of California personal income taxes, will be furnished to the successful bidder. A
copy of the legal opinion will be printed on or attached to each Bond.
PueL:6638_11141 B2608.3
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TERMS OF SALE
Interest Rate: Bidders must specify the rate or rates of interest per annum, and the same rate or
rates may be repeated as often as desired; provided, however:
(i) Interest rate may not exceed twelve percent (12%) per annum.
(ii) Each interest rate specified must be in a multiple of 1/20 or 1/8 of 1 percent.
(iii) No Bond shall bear more than one rate of interest.
(iv) Each Bond shall bear interest from its date to its stated maturity date at the
interest rate specified in the bid.
(v) All Bonds of the same maturity shall bear the same rate of interest.
(vi) The interest rate on any maturity shall not be less than the interest rate on any
prior maturity,
Basis of Award: The Bonds will be awarded on the basis of the lowest net interest cost
including premium or discount offered on the bids. No bid for less than ninety-eight and one-
half percent (98.5%) of par, and accrued interest (which interest shall be computed on a 360-day
year, 30-day month basis ) will be accepted. The lowest net interest cost will be determined by
computing the total amount of interest payable on the Bonds from October 15, 1993, to their
respective maturity dates calculated solely on the basis of the Bonds offered in this Notice, and
deducting from such total the amount of the premium offered, or adding to such total the amount
of the discount offered, if any. In the event two or more bids setting forth identical interest
rates, premium, if any, and discount are received, the District reserves the right to exercise its
own discretion and judgment in making the award and may award the Bonds on a pro rata basis
in such denominations as the District shall determine.
Right of Rejection: The District reserves the right, in its discretion, to reject any and all bids
and 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 48 hours after the expiration of the time herein prescribed for the receipt of bids, unless
such time of award is waived by the successful bidder.
Delivery and Payment: It is estimated that delivery of the Bonds will be made to the successful
bidder by November 1, 1993. Payment of the purchase prices (less the amount of the bid check
mentioned below) must be made in funds immediately available to the District. The cost of
printing the Bonds will be borne by the District.
Right of Cancellation: The successful bidder shall have the right at its option to withdraw its
bid if the District shall fail to issue the Bonds and tender the same for delivery within sixty (60)
days from the date of sale thereof, and in such event, the successful bidder shall be entitled to the
return of the deposit accompanying his bid.
Form of Bid: The bids must be for all of the bonds and for not less than ninety-eight and one-
half percent (98.5%) of the principal amount thereof plus accrued interest to the date of delivery.
Each bid, together with the bid check, must be enclosed in a sealed envelope addressed to the
Yorba Linda Water District, c/o Bartle Wells Associates, 1636 Bush Street, San Francisco,
California 94109, and endorsed "Bid for Yorba Linda Water District Improvement District No. 1
PUBL:6638_1 1141 B2608.3
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Refunding Bonds." Each bid must be in accordance with the term and conditions set forth
herein.
Telefax Bid: Bidders may submit their bid by telefax providing that the good faith deposit
(described below) and an original signed bid form and envelope endorsed as stated above has
been received by the District's financial advisor, Bartle Wells Associates, before 10:00 a.m. on
the date of sale. Neither the District nor Bartle Wells Associates take any responsibility for any
difficulties in receiving fax transmittals prior to the deadline for receipt of bids. The fax number
to be used for this purpose is 415/775-4123.
Good Faith Deposit: Each bid must be accompanied by a good faith deposit, surety bond
(SureBid), a certified check or cashier's check for $50,000 payable to the order of the Yorba
Linda Water District to secure the District from any loss resulting from the failure of the bidder
to comply with the terms of its bid. Checks of the unsuccessful bidders will be returned by the
District promptly after the date fixed for the receipt of bids. No interest will be paid on the good
faith deposit made by any bidder. The good faith deposit of the successful bidder will,
immediately upon acceptance of its bid, become the property of the District, and may be cashed
by the District. The amount of the good faith deposit will be credited upon the purchase price of
the Bonds at the time of delivery thereof. If the purchase price is not paid in full upon tender of
the Bonds, the successful bidder shall have no right to the Bonds or to the recovery of its good
faith deposit, or to any allowance or credit by reason of such deposit, unless it shall appear that
the Bonds would not be validly issued if delivered to the purchaser in the form and manner
proposed, and in the event of such nonpayment the District reserves any and all rights it may
have to recover the agreed purchase price of the Bonds and in addition any damages suffered by
it.
Estimate of Net Interest Cost: Bidders are requested (but not required) to supply an estimate of
the total net interest cost on the basis of their respective bids, which shall be considered as
informative only and not binding on either the bidder or the District.
CUSIP Numbers: It is anticipated that CUSIP numbers will be printed on the Bonds, but neither
the failure to print such number on any Bonds nor any error with respect thereto shall constitute
cause for a failure or refusal by the successful bidder to accept delivery of and pay for the
Bonds. All expense in relation to the assigning and the printing of CUSIP numbers on the Bonds
shall be paid for by the District.
California Debt Advisory Commission Fee: All bidders are advised that, pursuant to Section
8856 of the California Government Code, it will be the responsibility of the successful bidder to
pay the statutory fee to the California Debt Advisory Commission.
Certificate: At the time of delivery of the Bonds, the purchase will receive a certificate signed
by an officer of the District, confirming to the purchaser that, to the best of the knowledge of
said officer the Official Statement, as of the date of sale of the Bonds and as of the date of
delivery thereof, did not contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading.
PUBL:6638_1 1141132608-3 4
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Information Available: Requests for information concerning the District or the Bonds should be
addressed to the District's financial advisor: Bartle Wells Associates, 1636 Bush Street, San
Francisco, California 94109, Telephone 415/775-3113, Telefax 415/775-4123.
Official Statement.: The District has certified that the preliminary Official Statement is deemed
final within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. The
District will provide to the successful bidder within seven (7) business days of award of the
Bonds such number of printed copies of the official statement for this issue as requested. Up to
50 copies of the official statement will be furnished to the successful bidder at the District's
expense. Additional copies will be printed at the expense of the bidder.
Bank Qualified: The District has designated the Bonds to be qualified tax-exempt obligations
pursuant to Section 265(b)(3)(b)(ii) of the Internal Revenue Code of 1986.
Dated: September 20, 1993
/s/ William J. Robertson
General Manager of the Yorba Linda Water
District
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