HomeMy WebLinkAbout1998-08-27 - Resolution No. 98-110
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RESOLUTION NO. 98-11
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
YORBA LINDA WATER DISTRICT DECLARING ITS INTENTION TO
SELL GENERAL OBLIGATION REFUNDING BONDS OF SAID DISTRICT
FOR IMPROVEMENT DISTRICT NO. 2, SERIES 1998
IN THE AMOUNT OF NOT TO EXCEED $10,200,000,
FIXING THE TIME AND PLACE FOR TAKING BIDS AND DIRECTING
PUBLICATION OF NOTICE INVITING BIDS
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 bonds, and
WHEREAS, District deems it proper and the necessity therefor appears that bids be invited for
bonds of YORBA LINDA WATER DISTRICT GENERAL OBLIGATION
REFUNDING BONDS FOR IMPROVEMENT DISTRICT NO. 2, SERIES 1998
(the "Bonds") in the amount not to exceed $10,200,000, and that if bids are
satisfactory, the Bonds be sold in the manner and at the time and place hereinafter
set forth.
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NOW, THEREFORE, BE IT RESOLVED BY the Board of Directors of Yorba Linda Water
District as follows:
Section 1. That sealed proposals for the purchase of the Bonds of said District for Improvement
District No. 2 in the amount not to exceed $10,200,000 be received by this Board of Directors at
Bartle Wells Associates, San Francisco, California, on September 16, 1998, up to the hour of
10:00 a.m. Pacific Time, and if no satisfactory bids are received on said date, the District may
elect to sell the Bonds at private sale.
Section 2. That the District Secretary is hereby authorized and directed to publish a notico
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 ten (10) days prior to the
date of opening bids stated in said notice and shall be substantially as shown on Exhibit "A"
attached hereto and made a part hereof.
Section 3. That the District Secretary 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 the Bonds. That said notice and
bid form shall be substantially as shown on Exhibit "B" attached hereto and made a part hereof.
Section 4. The proposed form of the Preliminary Official Statement prepared by Bartle
Wells Associates and presented to this Board of Directors is hereby approved with such changes
thereto as may be approved by the President in order to make such Preliminary Official
Statement final as of its date, except for the omission of certain information, as permitted by
Section 240.15c2-12(b)(1) of Title 17 of the Code of Federal Regulations (the "Rule"); and the
distribution of the Preliminary Official Statement in connection with the sale of the Bonds, with
such changes included, is hereby authorized. The President is authorized and directed to execute
and deliver a certificate relating to compliance with the Rule and a final Official Statement in
substantially the form of the Preliminary Official Statement hereby approved, with such
additions thereto and changes therein as are approved by said officer as necessary or desirable,
such approval to be conclusively evidenced by the execution and delivery thereof. The President
is authorized and directed to execute and deliver to the Underwriters a final Official Statement in
substantially the form of the Preliminary Official Statement hereby approved with such changes
as may be approved by the President as necessary or desirable, such approval to be conclusively
evidenced by the execution and delivery thereof.
PASSED AND ADOPTED this 27`h day of August, 1998 by the following called vote:
AYES: Fox, Scanlin, Armstrong, Beverage, and Korn
NOES: None
ABSENT: None
ABSTAIN: None
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r 1. ? .
Sterling L. Fox, President
Yorba Linda Water District
(SEAL.)
A
Wil
ecretary
Yorba Linda Water District
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EXHIBIT A
NOTICE INVITING BIDS
$10,0501000*
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YORBA LINDA WATER DISTRICT
IMPROVEMENT DISTRICT NO. 2 REFUNDING BONDS, SERIES 1998
YORBA LINDA, CALIFORNIA
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Project: Improvement District No. 2 Refunding Bonds are being issued to
refund Improvement District No. 2 1979 Water Bonds, Series A
and Series C Bonds and 1987 Refunding Bonds
Bonds Dated: September 15, 1998
Maturities: Serial Bonds Maturing May 1 in each of the years 1999 to 2005
inclusive
Interest Payable: May 1 and November 1 of each year, beginning May 1, 1999
Legal Opinion: Stradling Yocca Carlson & Rauth, a Professional Corporation
BIDS ARE TO BE RECEIVED WEDNESDAY
September 16, 1998
at or before 10:00 a.m., Pacific Time
Bartle Wells Associates
1636 Bush Street
San Francisco CA 94109
For further information, please contact the following:
Bartle Wells Associates
415.775.3113
* Preliminary, subject to revision
FVobs\336\D\DraR Submiuals ErHIBIT A.doc
EXHIBIT B
YORBA LINDA WATER DISTRICT
OFFICIAL NOTICE INVITING BIDS
$10,050,000*
YORBA LINDA WATER DISTRICT
IMPROVEMENT DISTRICT NO.2 REFUNDING BONDS, SERIES 1998
YORBA LINDA, CALIFORNIA
NOTICE IS HEREBY GIVEN that sealed bids will be received by the Yorba Linda Water
District (the "District") for the purchase of $10,050,000' principal amount of the
District's Improvement District No. 2 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
September 16, 1998
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 Neither the District nor Bartle Wells Associates is
responsible for any problem in receipt of bids by fax. Please allow
sufficient time for the bid to be transmitted, as there is a time delay
(typically 2-3 minutes) between the sending and receipt of facsimile
transmissions.
Telephone Bids: Bids may be submitted by telephone to Bartle Wells Associates,
415.775.3113, with confirmation by facsimile.
Opening of Bids and Award of Bonds: The bids will be opened at 10:00 a.m. Pacific
Time on September 16, 1998, 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
rejected.
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Preliminary, subject to revision.
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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 September 15, 1998.
Interest Payment: Interest will be paid on May 1 and November 1 of each year,
beginning May 1, 1999.
Maturities: The Bonds will mature on May 1 of each year as follows:
Due
Principal
Date
Amount*
1999
$1,280,000
2000
1,310,000
2001
1,370,000
2002
1,430,000
2003
1,490,000
2004
1,550,000
2005
1,620,000
Optional Prepayment: The Bonds are not subject to Optional Prepayment.
Payment: The Bond 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: Proceeds of the Bonds will be used to refund Improvement District
No. 2 A, C, and 1987 refunding.
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: U.S. Bank Trust, National Association, Los Angeles, as Paying Agent.
Preliminary, subject to revision.
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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 for 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.
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:
Interest rate may not exceed seven percent (7 percent) per annum.
Each interest rate specified must be in a multiple of 1/20 or 1/8 of 1 percent.
No Bond shall bear more than one rate of interest.
Each Bond shall bear interest from its date to its stated maturity date at the
interest rate specified in the bid.
All Bonds of the same maturity shall bear the same rate of interest.
The interest rate on any maturity shall not be less than the interest rate on any
prior maturity,
Purchase Price: No bid for less than ninety-nine and 25/100's percent (99.25 percent) of
par, and accrued interest (which interest shall be computed on a 360-day year, 30-day
month basis) will be accepted.
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. The lowest net interest cost will be
determined by computing the total amount of interest payable on the Bonds from
September 15, 1998, to their respective maturity dates calculated solely on the basis of the
Bonds offered in the 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 October 9, 1998. Payment of the purchase price (less the amount of the
bid check mentioned below) must be made in funds immediately available to the District.
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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: Each bid, together with the good faith deposit, must be enclosed in a sealed
envelope addressed to the Yorba Linda Water District, c/o Bartle Wells Associates, 1636
Bush Street, San Francisco CA 94109, and endorsed "Bid for Yorba Linda Water District
Improvement District No. 2 Refunding Bonds." Each bid must be in accordance with the
term and conditions set forth herein.
Good Faith Deposit: A certified or cashier's check drawn on a responsible bank or trust
company having an office Los Angeles or San Francisco, California, in the amount of
$50,000, payable to the order of the District, must accompany each proposal as a guaranty
that the bidder, if successful, will accept and pay for the Bonds in accordance with the
terms of its proposal.
The good faith deposit accompanying any accepted proposal will be cashed by the District
following the award to the successful bidder. The amount will be applied as a credit
towards the payment of the purchase price by the successful bidder. If after the award of
the Bond, the successful bidder fails to complete its purchase on the terms stated in its
proposal, the full amoun tof the good faith deposit will be retained by the District.
Any check accompanying unaccepted proposals will be made available for recovery by
each unsuccesful bidder as soon as the successful bid has been verified. No interest will be
paid upon any good faith check or deposit held or deposited by the District.
Financial Surety Bond: As an alternative, a bidder may submit or have submitted a
financial surety bond in the amount $50,000. If a financial surety bond is issued, it must
be from an insurance company licensed to issue such a bond in the State of California, and
such bond must be submitted to the District or its financial advisor prior to the opening of
the bids. If the Bonds are awarded to a bidder utilizing a financial surety bond, then the
purchaser is required to submit its good faith in the form of a certified or cashier's check (or
wire transfer such amount as indicated above) by no later than 2:00 p.m. (Pacific Time) on the
next business day following the receipt of bids. If such deposit is not received by that time, the
financial surety bond may be drawn by the District to satisfy the deposit requirement.
The wiring instructions for the good faith deposit are as follows:
To FIB for further credit to Bank of Yorba Linda
Account #01-004700-01 ABA 1222 3789-0
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
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shall constitute cause for a failure or refusal by the successful bidder to accept delivery of
and pay for the Bonds. All expenses in relation to the assigning and the printing of CUSIP
numbers on the Bonds shall be paid for by the District.
Adjustment of Principal Maturities: The District reserves the right to increase or
decrease the principal amount of any maturity of the Bonds as the District deems advisable
in order to accomplish its financing program, based on the actual rates of interest to be borne
by the Bonds and the requirement of the District plan of refunding. No such adjustment will
have the effect of altering the basis upon which the best bid is determined; provided, however,
that such increase or decrease shall result in a pro rata increase or decrease, as the case may be,
in the amount of discount or premium on the purchase of the Bonds.
Certification of Reoffering Price: The successful bidder shall be required, as a condition
to the delivery of the Bonds by the District, to deliver to the District a certificate, in form
and substance satisfactory to the District, stating (i) that, as of the date of award, the
Bonds were expected to be reoffered in a bona fide public offering, (ii) the initial offering
price at which a substantial amount (at least 10 percent) of each maturity of the Bonds
were sold to the public, and (iii) that no Bonds of a single maturity were offered at one
price to the general public and at a discount from that price to institutional or other investors.
California Debt and Investment Advisory Commission Fees: All fees payable to the
California Debt and Investment Advisory Commission in connection with the issuance of
the Bonds shall be the responsibility of the purchaser of the Bonds.
Certificate: At the time of delivery of the Bonds, the purchaser 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.
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 CA 94109, Telephone 415.775.3113, Telefax 415.775.4123
Official Statement: The District has approved a preliminary Official Statement relating
to the Bonds. Copies of such preliminary Official Statement will be distributed to any
bidder, upon request, prior to the sale in a form "deemed final" by the District for
purposes of Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule").
Within seven business days form the sale date, the District will deliver to the purchaser up
to 100 copies of the final Official Statement, executed by an authorized representative of
the District and dated the date of delivery thereof to the purchaser, in sufficient number to
allow the purchaser to comply with paragraph (b)(4) of the Rule and to satisfy the
Municipal Securities Rulemaking Board (the "MSRB") Rule G-32 or any other rules
adopted by the MSRB, which shall include information permitted to be omitted by
paragraph (b)(1) of the Rule and such other amendments or supplements as shall have
been approved by the District (the "Final Official Statement"). The purchaser agrees that
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it will not confirm the sale of any Bonds unless the confirmation of sale is accompanied or
preceded by the delivery of a copy of the final Official Statement.
Continuing Disclosure Agreement: The District's Continuing Disclosure Agreement
(substantially in the form appended to the Official Statement) will be furnished to the
purchaser at the time of delivery of the Bonds as a condition precedent to the purchaser's
obligation to accept and pay the purchase price for the Bonds.
Dated: August 27, 1998
/s/ William J. Robertson
Secretary/General Manager of the
Yorba Linda Water District
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OFFICIAL BID FORM
PROPOSAL FOR PURCHASE OF
Yorba Linda Water District
General Obligation Refunding Bonds
for Improvement District No. 2, Series 1988
Date: September 16, 1998
Yorba Linda Water District
c/o Bartle Wells Associates
1636 Bush Street
San Francisco, CA 94109
We offer to purchase $10,050,000` aggregate
principal amount of Yorba Linda Water District
General Obligation Refunding Bonds for
Improvement District No. 2, Series 1988, maturing
on May 1, in the years, in the principal amounts, and
bearing interest as follows:
Maturity
Principal
Interest
Date
Maturing
Rate
1999
$1,280,000
%
2000
1,310,000
%
2001
1,370,000
.
%
2002
1,430,000
.
.
%
2003
.
1,490,000
%
2004
1,550,000
%
2005
..........1,620,000
%
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We hereby request that printed copies of
an Official Statement pertaining to the Bonds be
furnished us in accordance with the terms of said
Notice Inviting Bids (amounts in excess of 100 to be
paid for by purchaser).
Following is our computation of the net interest cost
made as provided in the Notice of Sale, which is not a
part of the bid and is to be considered informative
only.
Total interest $
Less premium or plus discount............ $
Net interest $
Net interest rate %
Respectfully submitted,
Name of Firm:
Bv:
Address
Telephone No.:
Following is a list of the members of our account on
~~hose behalf this bid is made:
a purchase price of $ which
represents the principal amount plus a premium of
$ or less a discount of
E:\Jobs336\D\Dra11 Submittals\BIDFORb(.dx
$ Minimum purchase
price is $9,974,625.
This proposal is made subject to all the terms and
conditions of the Official Notice Inviting Bids for
said Bonds dated August 27, 1998, 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 forty-eight (48) hours after the expiration
of the time for the receipt of proposals, as specified in
said Notice of Sale.
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Preliminary, subject to revision