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
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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:
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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:
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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
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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
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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
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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
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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.
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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
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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
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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)