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HomeMy WebLinkAbout1961-02-21; Municipal Water District; Resolution 129RESOLUTION NO. 129 RESOLUTION OF THE BOARD OF DIRECTORS OF ING ITS INTENTION TO SELL BONDS OF SAID DISTRICT FOli IMPROVEMENT DlSTRICT NO. 3 TIBREOF IN THE AMOUNT OF $800,000 AND FIXING TIME AND PLACE FOR TAKIXG BIDS AND DIRECTING PUBLICAT'ION OF NOTICE IiWIT'ING BIDS. CARLSBAD MUNICIPAL WATER DISTRICT DECLAR- WHEREAS, this Board of Directors deems it proper and the necessity therefor appears that bids be invited for $800,000 bonds of CARLSBAD MUHICIPAL WATER DISTRICT FOR IMPROVEPIE" DISTRICT NO, 3 (said amount being part of the $1,000,000 authorized at an election held in said improvement district December 20, 1960); NOW, THEREFORE, the Board of Directors of CARLSBAD KUNICIPAL WATER DISTRICT does hereby RESOLVE, DETERIUNE AND ORDER as follows : Section 1. "hat sealed proposals for the pur- chase of all of said $800,000 bonds be received by this Board of Directors at its meeting place 2698 State Street, Carlsbad, California, up to the hour of 2:OO o'clock P.M., on March '7, 1961, and in the manner con- tained in the notice set forth herein. Section 2. That the Secretary of this Board . . -- is hereby authorized and directed to publish notice inviting 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 relat- ing 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. ._I- - -~ . . . . . . .. .. .. NCrrICE INVITING BIDS ON $800,000 OENERAL OBLIGATION BONDS OF CARISBAD MUNICIPAL MENT DISTRICT NO. 3. WATW DISTRICT FOR IMPROVE- NOTICE 19 KEREBY GIVEN that sealed proposals for the purchase of $800,000 par value general obliga- tion bonds of CARUBAD MUNICIPAL WATER DISTRICT, FOR IMPROVEMENT DISTRICT NO. 3, 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, March 7, 1961, at 2:OO o'clock P.M. PLACE: At the meeting place of the Board of Directors, 2698 State Street, Carlsbad, California. MAILED BIDS: Mailed bids should be addressed to the district, c/o Mr. Richard R. Coe, Secretary, Carlsbad Municipal Water District, 2698 State Street, Carlsbad, California. ISSUE: $800,000, designated ELECTION 1960, SERIES 1 (part of an issue of $1,000,000 authorized at an election held in said Improvement District No. 3 on December 20, 1960) consisting of eight hundred bonds, numbered 1 to 800, both inclusive, of the denomination of $1,000 each, all dated March 1, 1961. MATURITIES: The bonds will mature in consecu- tive numerical order on March 1 in the amounts for each of the several years as follows: Year 1966 1967 1968 1969 - 1974 1975 1976 1977 1978 Year 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 - 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. REGISTRATION: The bonds will be coupon bonds registrable only as to both principal and interest. CALL AND FUDBMPTIOPJ: Bonds maturing on or prior to March 1, 1990, shall not be subject to call or redemption prior to maturity. The bonds maturing on March 1, 1991, or any of them, may be called before maturity and redeemed in consecutive numerical order, at the option of the Board of Directors on March 1 of the years shown in the column to the right of the respec- tive bond numbers as shown on the schedule below, or on 4. any interest payment date thereafter prior 'Go maturity at a redemption price for each redeemable the principal amount thereof. REDEMPTION SCHEDULE Bond Numbers, Total (Inclusive) Principal Amount 126 - 139 140-153 154-163 164-174 175-186 200-213 214-227 228-242 243-258 259-275 276-293 313-333 334-355 356-378 379-403 430-457 458-487 488-519 520-552 553-587 588-624 625-663 664-704 705-748 187-199 294-312 404-429 $14,000 14,000 10,000 11,000 12,000 13, ooo 14 , 000 14,000 15,000 16,000 17, ooo 18,000 19,000 21,000 22,000 23,000 25, ooo 26, 000 28,000 30, ooo 32, ooo 33,000 35,000 37 9 000 39 , 000 41,000 44,000 bond equal to Year 1964 _I_ 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 PURPOSE OF ISSUE: Said bonds were authorized for the acquisition and construction of water transmis- sion 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 5. improvement district are or in the judgment of the Board of Directors will probably be inadequate for any cause to pay 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 provided in said Act upon the taxable property within the improvement district sufficient to pay the amount of such principal and inter- est as will become due before the proceeds of a tax levied at the next general tax levy will be available. Provision is also made in the Resolution of Issuance, Resolution No, 128 , for a Sinking Fund levy to be made, some of the proceeds of which may be transferred into a Bond Redemption Fund for the call and redemption of bonds prior to maturity. TJBMS OF SALE Interest Rate or Rates: Bids shall state the rate or rates of interest for all bonds of this series, Each rate must be a multiple of 1/20 of 1%. shall have attached thereto interest coupons numbered consecubively, payable annually for the first year and semiannually thereafter extending from the date of the bond to its maturity date, referred to herein as regular coupons.'' regular coupons may be bid and, if so, such interest will be represented by supplemental interest coupons attached to the bond. Interest, if any, represented by supple- All bonds II Interest in addition to that represented by mental coupons, shall commence with the date of the bonds and shall continue for such consecutive period (ending with a regular interest payment date) as may be specified in the bid. Such interest represented by supplemental h coupons shall be payable annually the first year and, if applicable, semiannually thereafter. Supplemental coupons, if any, shall bear the coupon number corresponding to the number of the regular coupon payable on the same interest payment date, and said number on the regular coupon shall be preceded by the letter "A" and on the supplemental coupon by the letter "B'l . four interest rates for regular coupons. No bid shall provide more than three interest rates for supplemental coupons. The repetition of any rate will not be con- sidered the bidding of an additional rate. supplemental coupons are bid no bond shall bear more than one interest rate. In case supplemental coupons are bid no bond shall bear more than two interest rates, to wit: one rate during the period for which supplemental interest is payable (being the combined total of the regular rate during such period and the supplemental rate during such period) and one rate during the term of the bond following the period for which supplemental interest is payable. Not more than one regular coupon and one supplemental coupon on any bond shall be payable on any one annual or semiannual interest payment date. The total interest payable for any interest period shall not exceed 5% per annum. No bid shall provide more than In case no Award: The bonds shall be sold for cash only. All bids must 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 and the premium, if any. Each bidder shall 7. 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 the highest responsible bidder or bidders. 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 maturity dates thereof and the award will be made on the basis of the lowest net interest cost to the district. The purchaser must pay accrued interest computed on a 360-day year basis 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 discretion, to accept the best bid or to reject any and all bids and to the extent not prohibited by law 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 twenty-six hours after the expiration of the time herein prescribed 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 gfven to 8. 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, 117 Winston Street, Los Angeles, California, or at any place agreeable to both the Treasurer of the district and the successful bidder. Prompt Delivery, Cancellation for Late Delivery: It is expected that said bonds will be delivered to the successful bidder within forty 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 of the 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 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 - Improve- ment District No. 3 - Election 1960, Series 1 Bonds." 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 and pay for said bonds in accordance with the terms of his bid. The proceeds of the check accompanying 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 retained by the district. The check accompanying each unaccepted proposal will be returned promptly. 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 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 Bureau of Internal Revenue or by a decision of any 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 unqualified opinion of O'Melveny & Myers, attorneys, approving the validity of said bonds will be furnished the successful bidder at or prior to the date of delivery of the bonds, at the expense of the district. No Litigation Certificate: At the time of pay- ment 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. 10. INFORMATION AVAILABLE: Requests for information concerning the district should be addressed to: Mr. Richard R. Coe, Secretary Carlsbad Municipal Water District 2698 State Street Carlsbad, California -or- Schwabacher & Co. 100 Montgomery Street San Francisco 4, California GIVEN by order of the Board of Directors of CARLSBAD I\.IUNICIPAL WATER DISTRICT adopted February 21 , 1961. RICHARD R. COE Secretary of the Board of Directors of Carlsbad Municipal Water District 11. ADOPTED, SIGNED AND APPROVED this 21st. day of February , 1961. Municipal Water District ATTEST : q, 7 )& CiClzJ L I io-- Secretary of the Board of Directors of Carlsbad Nunicipal Water District -_ (SEAL) 12. S'IATE OF CALIFORNIA COTJNTY OF SAN DIEGO 1 ss. I, RICHARD R. COE, Secretary of the Board of Directors of Carlsbad Mu-nicipal Water District, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Board of Directors of said district at a regular meeting of said and that it was so adopted by the following vote: Board held onxe 21st. day of February 3 1961, AYES : Directors Kelly, Carnohan, Coe, Greek, Maerkle NOES : Directors None ABSENT : Directors None 7 .'\ 1 Ili"c.c-I:L-dc L 0% Secretary of Carlsbad Municipal Water District and of the Board of Directors thereof.