HomeMy WebLinkAbout1978-09-20; Municipal Water District; Resolution 375RESOLUTION NO. 375
A RESOLUTION OF THE BOARD OF DIRECTORS
OF CARLSBAD MUTJICIPAL WATER DISTRICT
AUTHORIZII’IG ISSUANCE OF NEGOTIABLE
PROYISSORY NOTE IN THE PRINCIPAL AMOUNT OF
$6O0,900.00 TQ SOUTHWEST BAfJK IN ACCORDANCE WITH
SECTION 71810 ATJD 71811,
WATER CODE OF THE STATE OF CALIFORNIA
AND RESCINDING RESOLUTION 372
WHEREAS, the Board of Directors of the CARLSBAD NUNICIPAL
WATER DISTRICT has deemed! it to the best interests of the
CARLSBAD FIUNICIPAL WATER DISTRICT and the inhabitants thereof to
construct an extension of the TRI-AGENCIES PIPELINE for the con-
struction of a water transmission line and appurtenances thereto
within the boundaries of CARLSBAD MUNICIPAL WATER DISTRICT; and
WIIEREAS, the Board of Directors of the CARLSBAD MUNICIPAL
WATER DISTRICT deemed it to the best interests of the CARLSBAD
- MUNICIPAL WATER DISTRICT to issue negotiable promissory notes in
the principal sum of $500,000.00, in accordance with Section
71810 and 71811, Water Code of the State of California, to secure
some of the necessary funds for the said extension, based upon
the estimated cost of said extension; and
WHEREAS, the Board of Directors of the CARLSBAD MUNICIPAL
WATE? DISTRICT has caused a notice inviting quotations on the
said. negotiable promissory notes to he delivered to all finan-
cial institutions located within the boundaries of CARLSBAD MUNI-
CIPAL TATER DISTRICT; an2
WHEREAS, SOUTHIWEST BANK had submitted an acceptable quota-
tion to CARLSBAD MUNICIPAL WATER DISTRICT on the proposed nego-
tiable promissory notes in the sum of $500,000.00; and
WHEREAS, the quotation of SOUTHWEST BANK was accepted by
adoption of Resolution No. 372 of the Board of Directors of
CARLSBAD MUNICIPAL WATER DISTRICT; and
WHEREAS, the 3oard of Directors of CARLSBAD E11JNICIPAL
VATER DISTRICT have now received the actual cost of the exten-
sion of said pipeline by a change order to the existing contract
for the construction of the TRI-AGENCIES PIPELINE; and c_
WHEREAS, the actual cost to CARLSBAD MUNICIPAL V7ATER DIS-
TRICT for said extension exceeds the oriqinal cost estimate;
and
WHEREAS, the Board of Directors of the CARLSBAD MUNICIPAL
V7ATE3 DISTRICT has deemed it to the best interests of the CARLS-
BAD EITJNICIPAL WATEQ DISTRICT to issue negotiable promissory
notes in the principal sum of $600,000.00 in accordance with Sec-
tion 71810 and 71811, Water Code of the State of California to
secure the necessary funds for said extension: and
IWIEREAS, the Board of Directors of the CARLSBAD MUNICIPAL
PATER DISTRICT has caused neqotiations to be conducted with
SOUTHWEST BANK for an acceptable quotation to CARLSBAD MUNICIPAL
WATER DISTRICT on the sum of $600,000.00 negotiable promissory
notes; and
-
V7HEREAS, SOUTHWEST BAVK has submitted an acceptable quota-
tion to CARLSBAD MUYICIPAL WATER DISTRICT on said proposed nego-
tiable promissory notes in the principal sun of $600,000.00.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF CAXLSBAD MUNI-
CIPAL WATEP, DISTRICT DOES HEREBY RESOLVE AND ORDER AS FOLLOW :
1. Resolution No. 372 of the Board of Directors of CARLS-
BAD MUNICIPAL WATER DISTRICT is hereby rescinded.
2. The quotation of SOUTEIP7EST BANK to loan to CARLSBAD
_I MUNICIPAL VlATER DISTRICT the principal sum of $600,000.00, by
issuing a negotiable promissory note, in accordance with Section
71810 and 71811, Water Code of the State of California, under
the following terms and conditions:
-2-
Principal Amount:
Interest Rate :
Principal Payment:
Interest Payment:
$ 600,000.00
5 7/8% per annum, on principal
balance remaining from time to time.
$60,000.00 or more on July 1,
1979 and on January 1, 1980 and on the 1st day of July and
the 1st day of January of each calendar year thereafter until July 1, 1983 at which time any remaining principal balance is due and payable in full.
On July 1, 1979 and on January
1, 1980 and on the 1st day of July and 1st day of January of
each calendar year thereafter until the total principal sum
has been paid in full.
is hereby accepted.
2. The payment of the sums due under said negotiable
promissory note shall be payable from revenues and taxes levied
I-- for purposes of the District, other than the payment of princi-
I
,
pal and interest on any bonded debt of the District or of an
improvement district therein, in accordance with Section 71810,
._
Water Code of the State of California.
3. The President and Secretary of the CARLSBAD MUNICIPAL
WATER DISTRICT and of the Board of Directors thereof are author-
ized and hereby directed to execute any documents for and on
behalf of CARLSBAD MUNICIPAL WATER DISTRICT.
ADOPTED, SIGNED AND APPROVED this 20th day of September,
1978.
President of CARLSBAD MUNICIPAL
WATER DISTRICT and of the Board of Directors thereof.
-3-
ATTEST:
F"$ VI. MAERKLE
Secretary of GARLSBAD MUNICIPAL
WATER DISTRICT and of the Board
of Directors thereof.
STATE OF CALIFORTJIA )
COUNTY OF SAN DIEGO 1 : ss.
I, FRED b7. MAERKLE, Secretary of the Board of Directors
of CARLSBAD MUNICIPAL FJATER DISTRICT, DO HEREBY CERTIFY that the
foregoing Resolution was duly adopted by the Board of Directors
of CARLSBAD MUNICIPAL WATER DISTRICT at a regular meeting of -
said Board held on the 20th day of September, 1978, and that it
was so adopted by the following vote:
AYES: DIRECTORS: KELLY, MacLEOD,
PllAERKLE
NOES : DIRECTORS: NONE.
ABSTAIPJ : DIRECTORS : UIILINGER
ABSENT : DIRECTORS : ENGELMANN
W. MAERKLE
CARLSBAD MUNICIPAL WATER DISTRICT and of the Board of Directors thereof.
-4-