Resolution Number OCWD NO. 4 74-3-11-2RESOLUTION NO. 74-3-11-2
RESOLUTION OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY WATERWORKS DISTRICT NO.
4 PROVIDING FOR THE ISSUANCE AND SALE
OF GENERAL OBLIGATIONS BONDS OF SAID
DISTRICT IN THE AMOUNT OF $349,000
WHEREAS, the Board of Supervisors, acting as the Governing
Board of Orange County Waterworks District No. 4 by Resolution
adopted October 2, 1962, established a zone within Orange County
Waterworks District No. 4 for the purpose of incurring a bonded
indebtedness within the zone sufficient to pay the costs of con-
structing a water system and other necessary improvements inci-
dental thereto for the purpose of providing a basic water system
for supplying water and levying a special tax within the zone
for the payment of the principal and interest on the bonds. A
general description of the improvements is as follows:
The acquisition, construction and installation..-.-
of
nstallation - -of works and facilities for the purpose of pro-
viding a basic water system for supplying water,
said works and facilities to consist of (1)
water distribution and storage facilities, in-
cluding water lines, reservoirs, pumping plants
and related facilities, (2) the development of
water supplies including the acquisition of
wells and/or well sites, and development and/or
redevelopment of wells, (3) the acquisition of
all lands, water rights, rights of way, pipes,
pumps, meters, hydrants, valves, fittings, ap-
purtenances, and other property necessary for
any of the foregoing, and (4) participation in
the construction of a feeder line for imported
MWD water;
the estimated cost of said improvements being $759,000.00; and
WHEREAS, said Board was authorized and empowered to incur
a bonded indebtedness of Orange County Waterworks District No.
4, Zone 2, in the principal amount of $759,000.00 for the pur-
poses and objectives recited in said Board's Resolution adopted
October 2, 1962; and
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WHEREAS, bonds in the amount of $360,000.00 have been pre-
viously issued on January 15, 1963 and in the amount of $50,000.00
on- January. 15; 1965; :and
WHEREAS, there remains unissued $349,000.00 of the bonds
authorized on October 2, 1962; and
WHEREAS, this Board of Directors, as the successor board
of Orange County Waterworks District No. 4 finds that it is nec-
essary to issue the remaining $349,000.00 of said authorized
bonds -to complete the hereinabove described improvements;
NOW, THEREFORE, the Board of Directors of Orange County
Waterworks District No. 4 DOES HEREBY RESOLVE, DETERMINE AND
ORDER as follows:
SECTION 1. That bonds of Orange County Waterworks District
No. 4 for Zone 2 in the principal sum of $349,000.00 be issued
and sold for the respective purposes set forth in the proposit-
ion in the recitals hereof. Said bonds shall be designated
"Orange County Waterworks District No. 4, Zone 2, Series C, Is-
sue'of 1974 Bonds", shall be 73 in number, numbered 1 to 73,
both inclusive, and Nos. 1 to 4, inclusive, shall be in the de-
nomination of $1,000.00 each and bond Nos. 5 to 73, inclusive,
shall be of the denomination of $5,000.00 each. Said bonds
shall be dated May 1, 1974, shall be payable in consecutive
numerical order, and shall mature on May 1 in the amounts for
each of the several years as follows:
Years
Inclusive
1977
1978-1981
1982-1986
1987-1991
1992-1996
1997-2000
nw4!
Amount Maturing
In Each Year
$ 4,000.00
5,000.00
1.0,000.00
15,000.00
20,000.00
25,000.00
0
Said bonds shall bear interest at a rate or rates to be
hereafter fixed by resolution, but not to exceed eight per-
cent (8%) per annum, payable semiannually on the first days
of November and May of each and every year except that the
interest for the first year shall be payable in one install-
ment at the end of said year. Said bonds and the interest
thereon shall be payable in lawful money of the United States
of America at the Corporate Agency Division of the Bank of
America National Trust and Savings Association in the Cities
of Los Angeles and San Francisco, California, at the option
of the holder thereof.
This Board of Directors hereby determines that the pub-
lic economy requires that less than one -fortieth (1/40) of
the whole amount of the indebtedness shall be payable annually.
SECTION 2. That the Chairman of the Board of Directors
of said District is hereby authorized and directed to sign all
of said bonds by his printed, lithographed or engraved facsi-
mile signature and the Auditor of said District is hereby auth-
orized and directed to attest said bonds and to affix thereto
the seal of said District, and said Auditor is further auth-
orized and directed to sign the interest coupons of said bonds
by his printed, lithographed or engraved facsimile signature.
SECTION 3. Any of said bonds may be registered either as
to principal only or as to both principal and interest, and
the form of registration of any registered bond may be changed
or any registered bond may be discharged from registration, in
the manner and with the effect set forth in the provisions for
registration contained in the form of bonds set forth herein.
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SECTION 4. That said bonds and the interest coupons at-
tached thereto shall be issued in substantially the following
form:
ME
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UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF ORANGE
BOND OF
ORANGE COUNTY WATERWORKS DISTRICT NO. 4, ZONE 2, SERIES C
ISSUE OF 1974
No. $
ORANGE COUNTY WATERWORKS DISTRICT NO. 4, ZONE 2, of Orange
County, State of California, for value received, hereby acknow-
ledges itself indebted and promises to pay to the bearer hereof
on the day of , 19
with interest thereon at the rate of percent ( $)
per annum payable semiannually on the' ---gays of
and of each and every year, except that t e
interest for the first year shall be payable in one installment
at the end of said year. Unless this bond is registered, such
interest, prior to maturity, shall be payable only on presenta-
tion and surrender of the proper interest coupons hereto attached
as they respectively come due. Both principal of and interest
on this bond are payable in such funds as are, on the respective
dates of payment of said principal and interest, legal tender for
debts due the United States of America, at the Corporate Agency
Division of the Bank of America National Trust and Savings Asso-
ciation in the Cities of Los Angeles and San Francisco, California,
at the option of the holder hereof.
This bond is one of a duly authorized issue of bonds of said
District aggregating THREE HUNDRED FORTY-NINE THOUSAND AND N0/100
DOLLARS ($349,000.00) in principal amount, all of like tenor and
date (except for such variations, if any, as may be required to
designate varying numbers, maturities, or interest rates), and
is issued under and pursuant to the Constitution and Statutes of
the State of California, and under and pursuant to proceedings
of the Board of Supervisors of Orange County, duly adopted by
Resolution of said Board on October 2, 1962.
Unless this bond matures on or prior to May 1, 1989, it is
redeemable prior to maturity in accordance with the provisions
for redemption endorsed hereon.
It is hereby certified, recited and declared that all acts,
conditions and things required by law to exist, happen, and to
be performed precedent to and in the issuance of this bond have
existed, happened and been performed in due time, form and manner
and as required by law, and that the amount of this bond, together
with all other indebtedness of said District No. 4, Zone 2, does
not exceed any limit prescribed by the Constitution or Statutes
of said State, and that provision has been made, as required by
law, for the collection of an annual tax sufficient to pay the
interest on this bond as it falls due, and also provision to
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constitute a sinking fund for the payment of the principal of
this bond on or before its maturity. The full faith and credit
of said District No. 4, Zone 2, are hereby pledged for the punctual
payment of the principal of and interest on this bond.
This bond is in the form prescribed by order of the Board
of Directors of said District duly made and entered in its
minutes, and the moneys for the redemption of this bond and the
payment of the interest hereon shall be raised by taxation ex-
clusively upon all of the property within Zone 2 of Orange County
Waterworks District No. 4, subject to taxation by said district
and neither said district nor any officer thereof is holden for
the payment hereof.
IN WITNESS WHEREOF, said Orange County Waterworks District
No. 4 has caused this bond to be dated this first day of May,
1974, to be signed by the Chairman of the Board of Directors
of said District by his facsimile signature and attested by the
Auditor of said District, has caused the seal of said District
to be affixed by facsimile and interest coupons hereto attached
to be signed by the Auditor by his facsimile signature.
ORANGE COUNTY WATERWORKS DISTRICT
NO. 4
By
Chairman
(SEAL)
ATTEST:
Auditor of said District
(COUPON FORM)
Coupon No.
On the day of
ORANGE COUNTY WATERWORKS DISTRICT NO.
4, ZONE 2, will (unless the within
mentioned bond be registered) pay to
bearer at the Corporate Agency Divis-
ion of the Bank of America National
Trust and Savings Association in the
Cities of Los Angeles and San Fran-
cisco, California, at the option of
the holder hereof, the sum of
in such funds as are then legal ten-
der for debts due the United States
of America out of funds of said Dis-
trict, being the interest then due
on its Orange County Waterworks
District No. 4, Zone 2, Bond Issue
of 1974, Series C, dated May 1,
1974.
I
Auditor of Orange County Water
District No. 4.
Substantially the following provisions for redemption shall
be printed on the reverse side of the bond:
PROVISIONS FOR REDEMPTION
Unless this bond matures on or prior to May
1, 1989, it is redeemable in the manner and sub-
ject to the terms and provisions, and with the
effect, set forth in Resolution No.
of Orange County Waterworks District No. 4 at
the option of the Board of Directors on May 1,
1989, or on any interest payment date there-
after prior to maturity, upon at least 30 days
prior notice published in a financial newspaper
or journal of national circulation published
in the City of New York, New York, at a redemp-
tion price equal to the principal amount thereof,
plus a premium of 1/2 of 1% for each 12 months
period or portion thereof from the date of re-
demption to the maturity date hereof, said pre-
mium not to exceed 5%.
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Substantially the following provisions for registration
shall be printed on the reverse side of each bond:
PROVISIONS FOR REGISTRATION
This bond may be registered in the name of any person
as the registered owner hereof, either as to principal only
or as to both principal and interest, and, if registered in
either of said forms may be changed to registration in the
other of said forms or discharged from registration.
Each registration, transfer after registration, change
of form of registration, or discharge from registration of
this bond shall be entered by an authorized officer of the
Bank of America National Trust and Savings Association in
books kept by it for the purpose in its Corporate Agency Div-
ision in Los Angeles, California, and noted by him in the
registration blank below. Registration as to principal only
shall not affect the negotiability by delivery of the cou-
pons pertaining hereto. Upon registration as to both prin-
cipal and interest, all unmatured coupons pertaining hereto
shall be surrendered to said officer and may be preserved.
So long as this bond is registered, no transfer hereof
shall be valid for any purpose unless made by the registered
owner and entered and noted as herein provided, and the prin-
cipal hereof and any redemption premium shall be payable only
to the registered owner, or to his order. Interest on this
bond, if registered to both principal and interest, shall be
payable to the person whose name appears upon the registry
books as the registered owner hereof at the close of business
on the tenth day preceding the interest payment date, or to
his order. If this bond is registered as to both principal
and interest and its registration is changed to registration
as to principal only, or if it is discharged from registration,
there shall be attached hereto coupons representing interest
hereon to become due thereafter to the date of maturity here-
of. In lieu thereof, and upon surrender and cancellation here-
of, the Treasurer in his discretion may issue in exchange there-
for a new bond, with such coupons attached, identical with
this bond, except for the previous notations on the regis-
tration blank hereon, and except that the signatures on the
new bond shall be those of the persons holding the office at
the time of affixing such signatures. The issuance of any
such new bond, or new coupons, shall be at the expense of the
registered owner.
Each discharge hereof from registration shall be effected
by an entry on the registry books, and a notation in the blank
below, that this bond is payable to bearer, whereupon this bond
shall become an unregistered bearer instrument, negotiable by
delivery as if it had never been registered. Each request for
registration, transfer, change or discharge must be in form
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satisfactory to the Bank of America National Trust and Sav-
ings Association and must be made in writing, signed by the
registered owner, or by his agent duly authorized in writing,
or by the bearer, as the case may be.
Date of In Whose Name Manner of
Registration Registered Registration
Signature of
Authorized Officer
of Bank of America
National Trust and
Savings Association
SECTION 5. That for the purpose of paying the principal and
interest of said bonds, the Board of Directors shall levy a tax
each year upon all of the property within said Orange County Water-
works District No. 4, Zone 2, subject to taxation by said Dis-
trict, sufficient to pay the interest on said bonds for that year
and such portion of the principal thereof as is to become due
before the time for making the next general tax levy; provided,
however, that such tax shall be levied and collected at the time
and in the manner aforesaid each year sufficient to pay the inter-
est on such indebtedness as it falls due and also sufficient to
constitute a sinking fund for the payment of the principal there-
of on or before maturity. Such tax shall be levied and collected
at the time and in the same manner as the general tax levy for
County purposes, and when collected shall be paid into the Dis-
trict Treasury into a fund, to be designated "Orange County Water-
works District No. 4, Zone 2, Series C, Issue of 1974, Bond Int-
erest and Sinking Fund", and the moneys in said fund shall be
used for the payment of the principal and interest on said bonds
and for no other purpose.
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SECTION 9. That the proceeds of the sale of said bonds (ex-
cept any interest paid by the purchaser thereof which shall be
placed in said Bond Interest and Sinking Fund) shall be placed
in the District's Treasury to the credit of a fund to be known
as "Orange County waterworks District No. 4, Zone 2, Series C,
Issue of 1974, Construction Fund", and shall be applied exclus-
ively to the purposes and objects set forth in the recitals of
this Resolution.
SECTION 10. The bonds maturing on or prior to May 1, 1989,
shall be not subject to call or redemption prior to maturity.
All bonds maturing on or after May 1, 1990, or any of them, may
be called before maturity and redeemed, at the option of the
Board of Directors, on May 1, 1989, or on any interest payment
date thereafter prior to maturity (hereinafter sometimes called
"redemption date"). Bonds called prior to maturity shall be
redeemed at the principal amount thereof, plus a premium equal
to 1/2 of 1% for each 12 months period or portion thereof from
the date of redemption to the maturity date hereof, said pre-
mium not to exceed 58. All or any of the bonds subject to call
may be called for redemption at any one time. If less than all
of the bonds are redeemed at one time, such bonds shall be re-
deemed only in inverse order of maturity years and by lot within
each maturity.
SECTION 11. Notices of the intended redemption shall be
published by one insertion in a financial newspaper or journal
of national circulation published in the City of New York, New
York, said publication to be at least thirty (30) days but not
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more than sixty (60) days prior to the redemption date. The
notice of redemption shall (a) state the redemption date; (b)
state the redemption price; (c) state the numbers and dates
of maturity of the bonds to be redeemed; provided, however,
that whenever any call includes all of the bonds of a maturity,
the numbers of such maturity need not be stated; (d) require
that such bonds be surrendered with all interest coupons matur-
ing subsequent to the redemption date (except that no coupons
need be surrendered on bonds registered as to both principal and
interest) at the Corporation Agency Division of the Bank of
America National Trust and Savings Association in the Cities
of Los Angeles and San Francisco, California, at the option of
the holder thereof (e) require that bonds which at the time of
call are registered so as to be payable other than to bearer
shall be accompanied by appropriate instruments of assignment
duly executed in blank; and (f) give notice that further inter-
est on such bonds will not accrue after the designated redemption
date.
If any of the bonds designated for redemption shall be
registered so as to be payable otherwise than to bearer, the
Treasurer of the District shall, on or before the date of the
first publication of said notices of redemption, mail a similar
notice, postage prepaid, to the respective registered owners
thereof at the addresses appearing on the bond registry books.
The actual receipt by the holder of any bond (hereinafter
referred to as "bondholder") of notice of such redemption shall
not be a condition precedent to redemption, and failure to re-
ceive such notice shall not affect the validity of the proceedings
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for the redemption of such bonds or the cessation of interest
on the date fixed for redemption.
The notice or notices required by this section shall be
given by the Treasurer of the District. A certificate by said
Treasurer that notice of call and redemption has been given to
holders of registered bonds as herein provided shall be con-
clusive as against all parties, and no bondholder whose regis-
tered bond is called for redemption may object thereto or ob-
ject to the cessation of interest on the redemption date fixed
by any claim or showing that he failed to actually receive such
notice of call or redemption.
SECTION 12. Prior to the time the District Board determines
to call and redeem any of said bonds there shall be established
in the treasury of the District a redemption fund to be described
or known as "ORANGE COUNTY WATER DISTRICT NO. 4, ZONE 2, SERIES
C ISSUE OF 1974 REDEMPTION FUND", (hereinafter sometimes called
"Redemption Fund"), and prior to the redemption date there must
be set aside in the Redemption Fund moneys available for the
purpose and sufficient to redeem at the premiums payable as in
this resolution provided, the bonds designated in such notice
of redemption. Said moneys must be set aside in said fund
solely for that purpose and shall be applied on or after the
redemption date to payment (principal and premium) for the bonds
to be redeemed upon presentation and surrender of such bonds
and (except as to bonds registered as to both principal and int-
erest) all coupons maturing after the redemption date, and shall
be used only for that purpose. Any interest coupons due on or
prior to the redemption date shall be paid from the General Ob-
ligation Bond Fund provided for herein upon presentation and
surrender thereof. Any interest due on or prior to the redemp-
tion date upon bonds registered as to both principal and inter-
est shall be paid from said Bond Fund. Each bond presented
(if unregistered or registered as to principal only) must have
attached thereto or presented therewith all interest coupons
maturing after the redemption date. If after all of the bonds
have been redeemed and cancelled or paid and cancelled there
are moneys remaining in said Redemption Fund, said moneys shall
be transferred to the general fund of said District; provided,
however, that if said moneys are part of the proceeds of re-
funding bonds said moneys shall be transferred to the fund
created for the payment of principal of and interest on such
refunding bonds.
SECTION 13. When notice of redemption has been given, sub-
stantially as provided for herein, and when the amount necessary
for the redemption of the bonds called for redemption (principal
and premium) is set aside for that purpose in the Redemption Fund,
as provided for herein, the bonds designated for redemption shall
become due and payable on the date fixed for redemption thereof,
and upon presentation and surrender of said bonds and (except
as to bonds registered as to both principal and interest) all
interest coupons maturing after the redemption date, at the place
specified in the notice of redemption, and if any of said bonds
be registered, upon the appropriate assignment thereof in blank,
such bonds shall be redeemed and paid at said redemption price
out of the Redemption Fund, and no interest will accrue on such
bonds called for redemption or on any interest coupons thereof
after the redemption date specified in such notice, and the
holders of said bonds so called for redemption after such re-
demption date shall look for the payment of such bonds and the
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premiums thereon only to said Redemption Fund. All bonds re-
deemed and all interest coupons thereof shall be cancelled
forthwith and shall not be reissued.
All interest coupons pertaining to any redeemed bonds,
which coupons have matured on or prior to the time fixed for
redemption, shall continue to be payable to the respective
holders thereof but without interest thereon. All unpaid int-
erest payable at or prior to the date fixed for redemption upon
bonds registered in such manner that the interest is payable
only to the registered owners shall continue to be payable to
the respective registered owners of such bonds, or their order,
but without interest thereon.
SECTION 14. The Board of Directors covenants that it is
not reasonably expected that the proceeds of the bond issue
will be invested in such a way as to violate Section 103(d)
of the Internal Revenue Code of 1954 or any rules and regula-
tions promulgated by the Internal Revenue Service thereunder.
ADOPTED, SIGNED AND APPROVED this llthday of March ,
1974.
' 1
C 1 an of thellBoard of Direc-
tors of Orange Bounty Waterworks
District No. 4
(SEAL)
ATTEST:
VIRGINIA MEADOWS
Clerk of the Board of Directors of
Orange County Waterworks District
No. 4
_j.
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MR
STATE OF CALIFORNIA )
ss.
COUNTY OF ORANGE )
I, VIRGINIA !MEADOWS, Clerk of the Board of Directors
of Orange County Waterworks District No. 4, hereby certify
that the above and foregoing resolution was duly and
regularly adopted by said Board at a Regular meeting
thereof held on the 11th day of March , 1974, and
that it was so adopted by the following vote:
AYES: DIRECTORS Gammell, Chermak and Weathers.
NOES: DIRECTORS None.
ABSENT: DIRECTORS Thorpe and Byrnes.
(SEAL)
VIRGINIA MEADOWS
Clerk of the Board of Directors
of Orange County Waterwords
District No. 4
By G//A.�.•,e�aJ Yl�le�,,sr.�.✓