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Resolution Number OCWD NO. 4 74-3-11-3U RESOLUTION N0.74-3-11-3 RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY WATERWORKS DISTRICT NO. 4 DECLARING ITS INTENTION'TO SELL BONDS OF SAID DISTRICT FOR ZONE 2 IN THE AMOUNT OF $349,000 AND FIXING TIME AND PLACE FOR TAKING BIDS AND DIRECTING PUBLICA- TION OF NOTICE INVITING BIDS WHEREAS, this Board of Directors deems it proper and the necessity therefor appears that bids be invited for bonds of ORANGE COUNTY WATERWORKS DISTRICT NO. 4 ZONE 2 in the amount of $34.9,000 and that if bids are satisfactory said bonds be sold in the manner and at the time and place hereinafter set forth; NOW, THEREFORE, the Board of Directors of Orange County Waterworks District No. 4 DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: SECTION 1. That sealed proposals for the purchase of bonds of Zone 2 of said District in the amount of $349,000 be receiv- ed by the Clerk of this Board at the place and up to the time specified in the notice hereinafter set forth. SECTION 2. That the Clerk of this Board is hereby auth- orized and directed to publish notice inviting such sealed proposals by one insertion in THE SUN POST, a newspaper of gen- eral circulation within the 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 Clerk of this Board is hereby auth- orized and directed to furnish to prospective bidders copies of the notice inviting proposals and of the official statement relating to the properties, operations and finances of said Dis- trict; but failure, in whole or in part, to comply with this - 1 - r, i Owl section shall not in any manner affect the validity of the sale of said bonds. SECTION 4. That said notice shall be substantially as fol- lows: - 2 - NOTICE INVITING BIDS ON $349,000 GENERAL OBLIGATION BONDS OF ORANGE COUNTY WATERWORKS DISTRICT NO. 4, ZONE 2 NOTICE IS HEREBY GIVEN that sealed proposals for the pur- chase of $349,000 par value general obligation bonds of Orange County Waterworks District No. 4, Zone 2, Orange County, Cali- fornia, will be received and opened by the Clerk of the Board of Directors of said District at the place and up to the time below specified: TIME: 6:30 o'clock p.m. April 8, 1974 PLACE: Orange County Waterworks District No. 4 . 32400 Paseo Adelanto San Juan Capistrano, CA. 92675 MAILED BIDS: Addressed to: Clerk, Orange County Water- works District No. 4 c/o 31301 Andres Pico San Juan Capistrano, CA. 92675 OPENING OF BIDS AND AWARD OF BONDS: The bids will be opened by the Clerk at 6:30 o'clock p.m. at 32400 Paseo Adelanto, San Juan Capistrano, California. ISSUE: $349,000 bonds, all dated May 1, 1974, designated "ORANGE COUNTY WATERWORKS DISTRICT NO. 4, ZONE 2, SERIES C, ISSUE OF 1974". DENOMINATIONS AND NUMBERS: The bonds will be 73 in number, numbered 1 to 73, inclusive. Bond Nos. 1 to 4, inclu- sive, shall be in the denomination of $1,000 each and bond Nos. 5 to 73, inclusive, shall be in the denomination of $5,000 each. MATURITIES: The bonds will mature in consecutive numerical order on May 1 in the amounts for each of the several years as follows: - 3 - U Years Inclusive 1977 1978-1981 1982-1986 1987-1991 1992-1996 1997-2000 Amount Maturing In Each Year $ 4,000.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 INTEREST: 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 installment at the end of said year. PAYMENT: Said bonds and the interest thereon are payable in lawful money of the United States of America at the Corporate Agency Division of the Bank of America National Trust and Sav- ings Association in the Cities of Los Angeles and San Francisco, California, at the option of the holder thereof. REGISTRATION: The bonds will be coupon bonds registrable either as to principal only or as to both principal and inter- est, and the form of registration may be changed, or the bond discharged from registration, all in accordance with provisions in the resolution providing for the issuance of said bonds. CALLABLE: The bonds maturing on or prior to May 1, 1989, shall not be 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 pay- ment date thereafter prior to maturity (hereinafter sometimes called the "redemption date"). Bonds called prior to maturity shall be redeemed at the principal amount thereof, plus a - 4 - MA premium equal to 1/2 of 1% for each 12 months period or por- tion thereof from the date of redemption to the maturity date thereof, said premium not to exceed five percent (5%). 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 redeemed only in inverse order of maturity years and by lot within each maturity. PURPOSE OF ISSUE: Said bonds were authorized on October 2, 1962, for the purpose of the acquisition and construction of water improvements. SECURITY: Said bonds are issued pursuant to the County Waterworks District Law (Division 16 of the Water Code) and shall be paid from unlimited ad valorem taxes levied upon all taxable property in zone 2 of the District. TERMS OF SALE INTEREST RATE: The maximum rate bid may not exceed eight percent (80 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 installment at the end of said year. Each rate bid must be a multiple of 1/20th of 1%. No bond shall bear more than one interest rate, and all bonds of the same maturity shall bear the same rate. Only one coupon will be attached to each bond for each install- ment of interest thereon, and bids providing for additional or supplemental coupons will be rejected. The rate on any maturity or group of maturities shall not be more than 2% higher than the interest rate on any other maturity or group of maturities. AWARD: The bonds will be sold for cash only. All bids must be for not less than all of the bonds hereby offered for - 5 - sale and each bid shall state that the bidder offers par and accrued interest to the date of delivery, the premium, if any, and the interest rate or rates not to exceed those specified herein, at which the bidder offers to buy said bonds. 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 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 Dis- trict 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, and the award will be made on the basis of the lowest net interest cost to the District. The purchaser must pay accrued interest from the date of the bonds to the date of delivery, computed on a 360 -day year basis. The cost of prin- ting the bonds will be borne by the District. 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 irregularity or informal- ity 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 prescribed for the re- ceipt of proposals; provided that the award may be made after the expiration of the specified time if the bidder shall not - 6 - 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 West Pico Boulevard, Los Angeles, California, or at any other place agreeable to both the Treasurer of the District and the success- ful bidder. PROMPT DELIVERY, CANCELLATION FOR LATE DELIVERY: It is expected that said bonds will be delivered to the successful bidder within thirty (30) 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 (60) days from the date of sale thereof, and in such event the successful bidder shall be entitled to the return of the check 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 ORANGE COUNTY WATERWORKS DISTRICT NO. 4, ZONE 2 BONDS". BID CHECK: A certified or cashier's check drawn on a re- sponsible bank or trust company in the amount of $5,000 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 check accompanying any accepted proposal shall be applied on the pur- chase 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 and be applied by the District - 7 - in partial satisfaction of whatever actual damages the District may suffer by reason of the successful bidder's failure to per- form hereunder in accordance with the terms of sale. In such instance, should the District's actual damages be determined to be less than said amount, thirty (30) days after any such determination by a court having jurisdiction thereof, becomes final, the balance of said amount shall be returned to the suc- cessful bidder. Should the successful bidder fail to perform hereunder, the District may also recover all costs relating thereto, including a reasonable amount for attorneys' fees. The check accompanying each unaccepted proposal will be re- turned 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 de- clared 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 or shall be required to be taken into account in computing federal income taxes by the terms of any federal income tax law enacted subsequent to the date of this notice. LEGAL OPINION: The unqualified opinion of Rutan & Tucker, Bond Counsel, approving the validity of said bonds will be fur- nished the successful bidder at or prior to the time of delivery of the bonds, at the expense of the District. A copy of the opinion of Rutan & Tucker, certified by an officer of the Dis- trict 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 certification. - 8 - 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 affect- ing the validity of the bonds. INFORMATION AVAILABLE: Requests for information concern- ing the District should be addressed to: Clerk, Orange County Waterworks District No. 4 31303 Andres Pico San Juan Capistrano, CA. 92675 GIVEN by order of the Board of Directors of Orange County Waterworks District No. 4, adopted March 11 , 1974. VIRGINIA MEADOWS Clerk of the Board of Directors Orange County Waterworks District No. 4 - 9 - ADOPTED, SIGNED AND APPROVED this 11th day of March , 1974. Directors ofrange County Waterworks Dis rict No. 4 ATTEST: VIRGINIA MEADOWS Clerk of the Board of Directors of Orange County Waterworks District No. 4 - 10 - STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) IN 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. VIRGINIA MEADOWS Clerk.of the Board of Directors of Orange County Waterworks District No. 4 i Lim 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 is a full, true and correct copy of RESOLUTION NO. 74-3-11-3 and that the same has not been amended or repealed. DATED: March 11 , 1974. VIRGINIA MEADOWS Clerk of the Board of Directors of Orange County Waterworks District No. 4 By (SEAL)