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HomeMy WebLinkAbout1968-05-15; Municipal Water District; Resolution 221RESOLUTION NO 221 RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL WATER DISTRICT DECLARING ITS INTENTION TO SELL BONDS OF SAID DISTRICT FOR IMPROVEMENT DISTRICT NO. 2 THEREOF IN THE AMOUNT OF $125,000 AND FIXING TIME AND PLACE FOR TAKING BIDS AND DIRECTING PUBLICBTION OF NOTICE IN- VITING BIDS. WHEREAS, this Board of Directors deems it proper and the necessity therefor appears that bids be invited for $125,000 bonds of CARLSBAD MUNICIPAL WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 2 (said amount being part of the $900,000 authorized at an election held in said Improvement District on November 19, 1957); NOW, THEREFORE, the Board of Directors of CARLSBAD MUNICIPAL WATER DISTRICT does hereby RESOLVE, DETERMINE AND ORDER as follows: Section 1. That sealed proposals for the purchase of said $125,000 bonds be received by this Board of Directors at its meeting place, 5780 El Camino Real, Carlsbad, California, up to the hour of 2:OO o'clock P.M., California Daylight Saving Time, June 5,. 1968, and in the manner contained in the notice set forth herein. Section 2. That the Secretary of this Board is hereby authorized and directed to publish notice inviting i such sealed proposals once in the CARLSBAD JOURNAL 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 said notice. Section 3. 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 and of an official statement 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 substan- tially as follows: 2. . c NOTICE INVITING BIDS ON $125,000 GENERAL OBLIGATION BONDS OF CARLSBAD MUNICIPAL WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 2. a 1 NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $125,000 par value general obligation bonds of CARLSBAD MUNICIPAL WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 2 of San Diego County, California, will be received by the Board of Directors of said district at the place and up to the time below specified: TIME : Tuesday, June 5, 1968. 2:OO o'clock P.M. California Daylight Saving Time. Directors, 5780 El Camino Real, Carlsbad, California. MAILED BIDS: Mailed bids should be addressed to: William Carmichael, Secretary, Carlsbad Municipal Water District, 5780 El Camino Real, Carlsbad, California. PLACE : Meeting Place of the Board of ISSUE : $125,000 designated "BONDS OF GARLSBAD MUNICIPAL WATER DISTRICT FOR IMPROVEMENT DISTRICT NO. 2, EmCTION 1957, SERIES 3" consisting of 25 bonds, numbered 1 to 25, both inclusive, of the denomination of $5,000 each, dated July 1, 1968, (being part of an issue of $900,000 authorized at an election held in said Improvement District No. 2 on November 19, 1957) 3. -.- MATURITIES: The bonds will mature in consecutive numerical order on iWy1 in the amounts for each of the several years as follows: Principal Amount $ 5,000 10,000 Years Inclusive 1969- 1973 1974- 1983 INTEREST: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed 5s per annum, payable annually the first year and semiannually thereafter. PAYMENT: Said bonds and the interest thereon are payable in lawful money of the United States of America at the office of the Treasurer of the district, Carlsbad, California, or at the main office of' Bank of America National Trust and Savings Association in Los Angeles, California, or San Francisco, California, or at any fiscal agency of the district in Chicago, Illinois, or New York, New York at the option of the holder. 4. _- REGISTRATION: The bonds will be coupon bonds registerable only as to both principal and interest. NOT CALLABLE: The bonds are not callable before maturity. PURPOSE OF ISSUE: Said bonds were authorized for the acquisition and construction of water transmission pipelines with appurtenances and appurtenant works. SECURITY: Said bonds are issued pursuant to the provisions of the Municipal Water District Act of 1911. Under said Act if the revenues of the district or of the improvement district are or in the judgment of the Board of Directors will probably be inamate for any cause to pay the principal of or interest on these improvement dis- trict bonds as it becomes due the Board of Directors must cause a tax to be levied as provided in said Act upon the taxable property within the improvement district sufficient to pay the amount of such principal and interest as will become due before the proceeds of a tax levied at the next general tax levy will be available. _- 5. TERMS OF SALE Interest Rate: The maximum rate bid may not exceed 5s per annum, payable annually the first year and semiannually thereafter. No bond shall bear more than one interest rate, and all bonds Each rate bid must be a multiple of 1/20th of 1s. of the 8ame maturity shall bear the same rate. must bear interest at the rate specified in the bid from its date to its fixed maturity date. attached to each bond for each installment of interest thereon, and bids providing for additional or supplemental coupons will Each bond Only one coupon will be be redected. The repetition of any rate will not be considered the bidding of an additional rate. maturities shall not be more than 2s higher than the interest Not more than four interest rates may be bid. The rate on any maturity or group of rate on any other maturity or group of maturities. Award:+ The bonds may be sold at a price equal to - their par value or above or below their par value, The bonds shall be sold for cash only. All bids must I. 1 6. be for not less than all of the bonds hereby offered for sale and each bid shall state the total price offered for - the bonds, the premium, or the discount, if any, and the interest rate or rates not to exceed that specified herein, at which the bidder offers to buy said bonds, and accrued interest to the date of delivery. 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 bonds will be awarded to the highest responsible bidder or bidders considering the interest rate or rates specified and the premium or the discount of- fered, if any. ing 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 maturity dates thereof at The highest bid will be determined by deduct- the coupon rate or rates specified in the bid. The net cost to the district on any bid or bids offering less than par will be determined by adding to the total amount of interest which the district would be required to pay from the date of said bonds to the respective maturity dates thereof at the coupon rate or rates specified in the bid the amount of the discount bid. The award will be made to the bidder or bidders offering the lowest net cost to the district. In the event that two or more bidders have bid the same lowest net cost to the district the award shall be made by lot. interest (computed on a 360-day year basis) from the date of the bonds to the date of delivery. The cost of printing the The purchaser must pay accrued c bonds will be borne by the district, 7. .. 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 irregu- larity 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 expiration of the time herein preecribed 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 Jeffries Banknote Company, -- 1330 W. Pic0 Boulevard, LO~ Angeles, California, or at any place agreeable to both the Treasurer of the dietrict and the successful bidder. Rev. 12/64-6 -_ _- Prompt Delivery; Cancellation for Late Delivery: It is expected that said bonds will be delivered to the successful bidder within thirty 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 bonds and tender them for delivery within sixty 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 accom- panying 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 Carlsbad Municipal Water District, Improvement District No. 2, Election 1957, Series 3 Bonds. $1 Bid Check: A certified or cashier's check on a 000 responsible bank or trust company in the amount of &kf%tiae --M&h&gmxb, payable to the order of the district must accompany each proposal as a guaranty that the bidder, if successfu1, will accept and pay for said bonds in accordance with the terms of his bid. ing 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 pro- ceeds retained by the district. The check accompanying each unaccepted proposal will be returned promptly. X The check accompany- 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 8. 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 by the terms of any feqeral income tax law enacted subsequent to the date of this notice. Legal Opinion: The unqualified opinion of O'Melveny & Myers, attorneys, approving the validity of said bonds will be furnished the successful bidder at or prior to the time of delivery of the bonds, at the expense of the district. A copy of such opinion, certified by an officer of the district by his facsimile signature will be printed on the back of each bond. No charge will be made to the purchaser for such printing or cert if icat ion . No Litigation Certificate: At the time of payment for and delivery of said bonds, the district will furnish the successful bidder a certificate that there is no litigation pending affecting the validity of the bonds. INFORMATION AVAILABLE: Requests for information concerning the district should be addressed to: Mr. William Carmichael Secretary, Carlsbad Municipal Water District, 5780 El Camino Real, Carlsbad, California. GIVEN by order of the Board of Directors of CARLSBAD MUNCIPAL WATER DISTRICT 9 19a adopted on MAY 15, i I Secretarv of th e Board of Directori of Carlsbad Municipal Water District. 9. . ADOPTED, SIUNED AND APPROVED Chi6 15th day of' PreslUbnt of th rectors of Carlsbad Muyfdpal Water District. 7 ATTEST: . Mrectori of Carlsbad Municipal Water District. 10. r- i .. STATE OF CALIFORNIA COUNTY OF SAN DIE0 I, W. D. CARMICHAEL , Secretary of the Board of Directors 'of ni R resolution was duly adopted by the Board of Directors of said District at a regular meeting of said Board held on the mth dr May , l9$s, and that it was so adoptmthe follm the wegoing f. r 1 Directors CARMICHAEL, KELLY, MAC LEOD, AYES: PALMER AND MAERKLE NONE NONE NOES: Directors ABSENT: Directors t 5&.&L- 3ecretary of ard of Direc tors thereof. I. ' . .. . . -_.~. . _- .