HomeMy WebLinkAbout1957-01-25; Municipal Water District; Resolution 44msoLmIoX 1110. 44
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BIOSOLWIOM OF THE BOARD OF DIREXTORS OF CARLSBBD MWIC IPAL WATEB DISTRICT DBCLAEIXG ITS I€W$ETION TO SELL BONDS
OF SAID DISTRICT FOB
IWROVlWENT DISTRICT NO. 1
THSUOF Ill THE AMOUNT OF $1,250,000
AND FIXIBG TIXE rllQD PLACE FOR TAKING
BIDS AND DIRECTIBG PUBLICATIOI OF
XOTICE INVIT I1sG BIDS.
WHEREAS, this Board of Directors deem is; proper and the necess- ity therefor appears that bids be invited for $1,250,000 bonds of
CAELSBAD BwlBTICIPAL WATGB DISTRICT FOR UPmVm DISTRICT NO. 1
(said amount being part of the #1,350,000 authorized at an election held in said improvement district October 5, 1956) allowing bidders to bid al- ternatively on either or both of two provisions for call and redemption prior to maturity, giving this Board the opportunity to determine which type of call provision it should use so ttrrt if bids under said provision are satisfactory mid bonis can be sold in the mnner and at the time and
place hereinaf'ter set forth;
XOW, THllRBZQRE, the Board of Director8 of
CARLSBBU) MUNICIPAL WATBIR DISRICT
does hereby RESOLVE, DETERMINE: AND ORDER as follows:
Seat ion 1, That sealed proposals for the purchase of all of
said $1,260,000 of bonds be received by this Board of Directors at its meeting place 2960 Pi0 Pioo Drive, Carlsbad, California, up to the hour of 7:30 o'clock P.I., on February 14, 1957, and in the manner contained in the notice set forth herein.
Section 2. That the Secretary of this Board is hereby author- ized and directed to publish not ice inviting such sealed proposals once in
a newspaper of general circulation, circulated within said district, said publication to be at least ten (10) days prior to the date of opening bids
stated in sald notice.
THE CARLSBAD JOURNAL,
Seuttn 3, That the Secretary of this Board ia he-by authorised
and directed to cause to be furnished to prospective bidders copies of the notice inviting proposals and of an official statemnt relating to the
properties, operations and finances of said district, but failure in whole
or in part to comply with this section shall not in any manner affect the
validity of the sale.
Section 4, That said notice shall be substantially as follows:
MOTICZD IMVITIIVG BIDS ON #1,250,000 GEMW OBLIGATIOR BONDS OF CARLSBAD MUNICIPAL WA'IER DISPBICT H)B
I?&PBOVSMEBT DISTRICT NO. 1
BOTICE. IS HERBBY GI= that sealed proposals fbr tbe purchase
of $1,250,000 par value general obligation bonds of
CARLSBAD MUNICIPAL WATZPB DISTRICT FOB DlPBoV~T DISTRICT MOO 1
of San Diego County, California, will be received by the Board of Director8
of said district at the place and up to the time below specified:
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TIU: Wednesday, February 14, 1957, at 7:30 o'clock P.M.
PLBCZi: At the office of the district, 2960 Pi0 Pic0 Drive, Carlsbad,
Cal if0 rnia .
MBILEQD BIDS: Mailed bids should be addressed to the district, o/o
Mr. Yax 0. Barald, Secretary Carlsbad Municipal Water District
2960 Pi0 Pic0 Drive
Carlsbad, California
OPBfU2lG OF BIDS: The bids rill be opened at the meeting of said
Board of Directors to be held February 14, 1957, at 7:30 o'clock P.X., at the office of the district, 2960 Pi0 Pic0 Drive, Carlsbad, California.
ISSUE: $1,250,000, designated ELECTION 1956, SBBIES 1 (prt
of an issue of $1,350,000 authorized at an election held in said Impmte-
ment District No. 1 on October 5, 1956) consisting of 1,260 bode
numbered 1 to 1,250, both inclusive, of the denomination of $1,000 each,
all dated March 1, 1957.
MATURITIJS; The bonds will mature in consecutive numerical
order on March 1 in the amounts for each of the several years as follows:
Principal Years Principal Year s Amount Inclusive
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Inclusive --- knout
Ib 5,000 5,000
10,oo
20,000
25,000 30,000 30,000 30 ,000 30,000
35,000 55,000
35,000
40,000
40,000
40,000
1958 1959 1960
1961
1962
1963
1964
1965
1966
1967
1968 1969
1970
1971
1972
$45,000 45,000
45,000
50,000 50,000 55,000 55,000
55,000 60,000 60,000 65,000 70,000 70,000
70,000
45,000
1973 1974 1975
1976
1977
1978 1979
1980
1981
1982
1983
1984
1985
1986 1987
IIVTl!RBST: The bonds &all bear interest at a rate or rates
to be fixed upon the sale thereof but not to exceed 5% per anuum, pay-
able annually the f irst year ard semiannually thereafter.
PAYBBEBTT: Said bonds and the interest thereon are payable in laaf'kl money of the United States of America at the office of the
Treasurer of the district, Carlsbad, California, or at the main of-
fice of Bank of America Xational Trust d Sating8 Association in Lo8
hgeles, California, or San Pranciaco, California, or at any fiscal agency of the district in Chicago, Illinois, or New York, New York,
at the option of the holder.
RISGIST~ION: The bonds will be coupon bonds registerable
only as to both principal ad interest,
ALTBIRNATNE CALL PROVISIONS: The bonds are to be callable
before maturity. or "Alternative B" (specified below), or may bid upon both alternatives. Bidders rnw bid for bonds on either "Alternative A"
If the district decides to issue the bonds der "Alternative
A" the bonds maturing on or prior to March 1, 1962, shall not be sub-
ject to call or redemption prior to maturity. The bonds maturing on or
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after March 1, 1963, or any of them, may be called before mtarity and
redeemed, at the option of the Board of Directors, on March 1, 1962, or
on any interest payment date thereafler prior to maturity, at a redemp- tion price for each redeemable bond equal to the principal amount there-
of, plus tb3 following premiums if redeemed at the following timer:
~~IOl? DATES
On or after And prior to March 1 March 1 Premium
1962 1963 1964 1965 1966 1967
1969 1970 1971 1978
1973
1974
1968
1963
1964
1965
1966
1967
1968
1969 1970
1971
1972
1973 1974 ldaturit y
If the district decides to issue the bonds der "Alternative
B" the bonds maturing on or prior to March 1, 1967, shall not be subject
to call or redemption prior to maturity, The bonds mturing on or after
March 1, 1968, or any of them, may be called before maturity and redeemed, at the option of the Board of Dimctora, on March 1, 1967, or on any in-
terest payment date thereafter prior to maturity, at a tedemption price
for each redeemable bond equal to the principal amount thereof, plus the following premiums if redeemed at the following times:
On or after March 1
1967
1969 1970 1971
1972 1973 1974 1975
1968
RRDEUPTIOlrJ DATBS
And prior to Wrch 1
1968 1969 1970 1971 1972
1973
1974
1975 Maturity
Premium
PUBPOSS OF ISSUE: Said bonds were authorized for the acquisi- t ion and construction of a water transmission pipeline with appurtenances
and appurtenant works,
SWURITY: Said bonds are issued pursuant to the provisions of
the Municipal Water District Act of 1911. of the district or of the improvement district are or in the judgment of the Board of Directors will probably be inadequate for any causa to pey the principal of or interest on these improvement district bonds as it becomes due the Board of Directors must cause a tax to be levied as pro-
vided in mid Act upon the taxable property within the impmvement dis-
trict sufficbnt to pay the amount of such principal and interest a8
will become due before the proceeds of a tax levied at the next general tax levy will be available.
Under said Act if the revenues
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Interest Bate: The maximum rate bid may not exceed 5% per
annum, payable annually the first year and semiannually thereafter.
Blach rate bid must be a multiplo of 1/20 of 1%. Eo bond shall bear more
thaa one interest rate, and all bonds of the same maturity shall bear the
same rate. The repetition of any rate will not be considered the bidding
of an additional rate.
shall not be more than l/& higher than the interest rate on any other
maturity or group of maturities.
The rate on any maturity or group of mturities
Award: The bonds shall be sold for cash only. be for not less than all of the bonds hereby offered for sale and each
bid shall state that the bidder offers par and accrued interest to the date
of delivery, the premium, if any, the alternative under which the bid is
rubmitted and the interest rate or rates not to exceed those specified
herein, at which the bidder offers to buy said bonds on said alternativr.
Bach bidder shall for each alternative atate in his bid the total net
interest cost in dollars and the average net interest rate determined
thereby, *ich shall be considered informative only and not a part of the
All bids must
bid.
Highest Bidder: The bonds will be awarded to the highest
responsible bidder or bidders on the alternative under which the district
decides to issue said bonds considsring the interest rate or rate8 speci-
fied ad 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 bonds to the respective mturity dates thereof at the coupon
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 lowest aet interest
cost shall be computed on a 360-day year basis. The purchaser must pay
accrued interest 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 distrection to accept the best bid on the alternative under which it
decides to issue the bonds or to reject any and all bids and to the ex-
tent not prohibited by law to waive any irregularity or informality in
RW bid.
Prompt Award: The district will take action awarding the
bonds or rejecting all bids not later than twenty-six hours after th
expiration of the time herein prescribed for the receipt of proposals;
provided, tfitrt the award my be made after the expiration of the epeci-
Pied 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 mde to
the successful bidder at Jeffrbs Banknote Company, 117 Winston Street, Lo s Angele 8, Cal if0 rnia.
Prompt Delivery, Cancellation for Late Delivery: It is ex- pected that said bonds will be delivered to the successful bidder within thirty days from the date of sale thereof.
have the right, at his option, to cancel the contract of purchase if
the district shall fail to execute the bonds and tender them for de- livery within sixty 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.
The successful bidder Shall
Fonn of Bid: ach bid, together with the bid check, must be
in a sealed envelope, addressed to the district with the envelope sad bid clearly marked "Proposal for Carlsbad Municipal Water District -
Improvement District Xo. 1 Bonds."
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Bid Check: A certified or cashier's check on a responsible
bank or trust company in the amount of 3% of the principal amount of the bonds, payable to the order of the district must accompany each proposal as a guaranty that the bidder, if successful, will accept
ard pay for said bonds in accordance with the terms of his bid. The
proceeds of the check accompanying any accepted proposal shall be ap- plied 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, ahall then be retained by the dia-
trict. The check accompanying each unaccepted proposal will be re-
turned promptly.
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Change in Tax Bxempt Status: At any time before the bond8
are tendered for delivery the successful bidder may disaffim and with-
draw the proposal if the interest received by private holders from bonds of the same type ani character shall be declared to be taxable income under present federal income tax laws, either by a ruling of
the Bureau of Internal Revenue or by a decision of auy federal court,
or shall be declared taxable by the terms of any federal income tax
law enacted subsequent to the date of this notice.
Legal Opinion: The ungualifi5d opinion of OtMelveny 6p Myerse
attorneys, approving the validity of said bonds will be furnished the succeseful bidder at or prior to the date of delivery of the borda,
at the exmnse of the district.
lo Litigation Certificate: At the time of pyment for and
delivery of said bonds the district will furnish the successful bidder
a cefiificate tbt there is no litigation pending affecting the validity
of the bonds.
IX~~IOH AVAILABU: Bequests for informat ion concerning
the district should be addressed to:
Mr. Max: 0. Bwald, Secretary
Carlsbad Municipal Water District
2960 Pi0 Pic0 Drive
Carl sbad, California
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Schwabacher & Co. 100 Montgomery Street at Sutter
San Francisco 4, California
GIVEE by order of the Board of Director8 of
CARLSBAD BlIulBICfPAL WATlR DISTRICT
adopted January 25, 1957.
c Secretary of the Boa
Directors of Carlsbad bknicipal Uater District
ADOPPBI), SIGNED ARD APPR0v;ED this 25th day of January, 1957.
President of Uhe Board o
Directors of Csrlsbad
Municipal Water District
A 7JILbco/w Secretary of the Board of
Directors of Carlabad Municipal Water District
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STATZ OF CALIFORBIA
COUHTY OF SBT3 DIEGO )
88.
I, Max 0. Rwald, Secretary of the BoaFd of Director8 of
Carlsbad Municipal Water District, DO mY CERTIFY that the fore-
going resolution was duly adopted by the Board of Directors of said
district at an adjourned regular meeting of said Board held on tho
25th day of January, 1957, and that it was so adopted by the follor-
ing vote:
AYaS : Directors hrald, Fry, Kelly, Rogers,
BOBS t Directors lone
ABSIQEPPt Director 8 Bone
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Secretary of Carlsbad Bb -ips;+ Water District and of the Board
of Directors thereof
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