Loading...
HomeMy WebLinkAboutResolution 1971 - 0085-7RESOLUTION NO. 71-85-7 RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT NO. 7 PROVIDING FOR THE ISSUANCE AND SALE OF BONDS IN THE PRINCIPl>.L ANOUNT OF $1,000,000. WHEREAS, in accordance with the provisions of the County Sanitation District Act, this Board on December 16, 1969, adopted the report required by Section 4748 of the Health and Safety Code of the State of California, of Boyle Engineering as engineer of such District; and WHEREAS, on February 11, 1970, this Board adopted a resolution calling and ordering a special election in ti1e District to be held on March 24, 1970, for .the purpose of submitting to the qualified electors of the District the proposition of incurring a bonded indebtedness in the amount of $6,000,000 for the purposes stated in the report; and WHEREAS, the election was duly held on March 2'1, 1970; and WHEREAS, this Board duly canvassed the returns of the election and adopted its resolution finding and determining that at such election more than two-thirds (2/.3rds) of the total votes cast were in favor of incurring such bonded indebtedness; and WHEREAS, bonds in the amount of $3,500,000 have heretofore been issued and sold; and WHEREAS, it is desirable that additional bonds ' in the amount of $1,000,000 be issued and sold at the present time; NOW, THEREFORE I it i~ hereby RESOLVED, DETER.'HNEO AND ORDERED by the Board of Directors of Orange County Sanitation District No. 7 as follows: Section 1. That bonds of Orange County Sanitation District No. 7 of Orange County, California, in the amount of $1, 000, 000 be issued and sold in accord<rnce with t.he pro- visions of the Health and Safety Code of the State of California governing the issuance of bonds. such bonds shall b~ designated "Orange County Sanitation District No. 7, 1970 Sewer Bonds, series B". Such bonds shall be issued for the objects and purposes set forth in the resolution calling the special election of l1arcll 24, 1970, shall be in the denomination of $5,000 each and shall be dated August 1, 1971. Such bonds shall be 200 in number numbered l through 200 inclusive. Such bonds shall bear interest at a rate or rates to be hereafter fixed by the Hesolution of Award, lYut not to exceed seven per cent (7%) per annum, payable annually the first year and semiannually thereafter. The principc:.l of and inter~st on such bonds shall be payable in lawful money of the United States of· America at the office of the County Treasurer of Orange County, located at the City of Santa Ana, California.· Section 2. The principal amount of such bonds to be sold hereunder together with the previous bonds issued and sold, does not exceed the principal amount of bonds authorized at the election held March 24, 1970. 2. Section 3. Such bonds shall be paJable in consecu- tive numerical order on August 1 in the amounts for eacl: of the several years as follows: Maturity Date (August 1) 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 Principal Amount (Each Year) $25,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000· 75,000 75,000 75,000 75,000 75,000 75,000 section 4. The Chairman of· the Board of Directors of Orange County Sanitation District No. 7 of Orange County is hereby authorized and directed to sign all such bonds and to affix thereto the seal of the Board. The l\uditor of the District is hereby authorized and directed to counter- sign said bonds, and the coupons attached thereto. All such signatures and countersignatures may be printed, lithographed, engraved or otherwise mechanically reproduced except that one of said signatures or countersignatures to suci1 bonds shall be manually affixed. The coupons of sucl1 bonds siia.11 be numbered consecutively and shall bear t:1e numLer of t:12 bond to which they are attached. Such bonds and the coupo:-:..s thereon shall be substantially in the form as described in Exhibit "A" hereto. Section 5. The proceeds of the sale of suc:1 bon,ls shall be placed in the trca~ury of the County of Orange to 3. the credit of Orange County Sanitation District lJo. 7 of Orange County, and all premiums and accrued interest rec"j ,r~d shall be paid into a fund to be used for the payment of prin- cipal anJ interest on the bonds, and the remainder of tlH= proceeds of the sale shall be paid into the construction fu:1d of the District and shall be applied exclusively to the objects and purposes mentioned in the resolution of this Board adopted Februa~y 11, 1970, calling the special election at which such bonds were authorized. Section G. The Board of Directors shall annually, at least fifteen days before the first day of the month i;1 which the Board of Supervisors of Orange County is required by law to levy the amount of taxes required by law for county purposes, furnish to the Board of Supervisors a written state- ment of the amount necessary to pay the interest on the 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, and the Board of Supervisors, in accordance with the duty imposed upon them by the provisions of the County Sanita- tion District Act, shall annually at the time and in the manner of levying other county taxes, levy and cause to be collected a tax upon the taxable real property in the Orange :ounty Sanitation District No. 7 based upon the last equalized assess- ment roll of the County, sufficient to pay the interest on the 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. Such tax shall be collected at the same time and in the same manner as the general tax levy for county purposes, and when collected shall be paid into the treasury of Orange 4. ' " County to the credit of the District and shall.be used f0r the payment of the principal of and interest on the bond ' c:;.nc.l for no other purpose. The principal of and interest on the bonds shall be paid by the County Treasurer in the manner no~ or hereafter provided by law for the payment of principal and interest on the bonds of the County. Section 7. Moneys in the fund created purs~ant to this Resolution shall be deemed at all times to be a part of such fund and the interest and income accruing thereon and any profit realized from the liquidation of such investment shall be credited to such fund and any loss resulting from the liquidation of any such investment shall be credited against such fund. Section 8. Any of the.bonds may be registered as to both principal only or as to both principal and interest, and the form of registration may be changed, or the bonds discharged from registration, all in accordance with the provisions contained in tl).e form of bond set forth herein. None of the bonds shall be callable prior to maturity. Section 9. That bonds in.the total amount of $1,000,000 of the Orange County Sanitation District No. 7, heretofore ordered to be issued by this Board, be sold and that sealed bids or proposals for the purchase of such bonus be received up to the time stated in the notice hereinafter set forth. ' 5. Section 10. The Secretary of this Board shall cause Notice of Sale of these bonds stating the terms of sale as herein provided to be published once in the Tustin News, a newspaper printed and published in the County of Orange and having general circulation in the Orange County Sanitation District No. 7, at least 10 days prior to the sale of such bonds. Section lt. The Secretary is hereby authorized and directed to cause to be furnished to prospective bidders copies of the Official Notice of Sale and Official Statement. The failure in whole or part to comply with this Section shall not in any manner affect the validity of the sale. Section 12. The notice shall be substantially as follows: OFFICIAL-NOTICE OF SALE ORANGE COUNTY SANITATION DISTRICT NO. 7 1970 SEWER BO~DS, SERIES B $1,000,000 NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $1,000,000 par value general obliga- tion bonds of Orange County Sanitation District of Orange County, California, will be received by the Secretary of the Board of Directors of such District at the pla~e and up to the time below specified: 6 ·- TIME: Vlednesuav_ Julv 21 1971 10:00 o'clock a.m. PLACE: Office of the County Treasurer of the County of Orange 630 North Broadway Santa Ana, California MAILED BIDS: Should be addressed to the District, c/o Secretary of the Board of Directors Orange County Sanitation District No; 7 c/o Office of the County Treasurer of the County of Orange 630 North Broadway Santa Ana, California Said bids will be presented to said Board at a special meeting thereof to be held at 5:30 on the same day. ISSUE: Such bonds are general obligation bonds of the District, and were authorized by an election held within said District on March 24, 1970. The bonds herein offered for sale are issued pursuant to the ·Health and Safety Code of the State of California. DENOMINATIONS AND NUMBERS: The bonds will he all in the denomination of $5,000 each. The hands will be 200 in number, numbered 1 through 200, inclusive. MATURITIES: The bonds will mature in consecutive numerical order on August 1, in the amounts for each of the several years as follows: 7. Maturity Date (August 1) 1973 1974 1975 197G 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 INTEREST: Principal Amounf (Each Year) $25,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed seven per cent (7%) per annum, payablle annually the first year and semiannually on August 1 and February 1 of cac~ year thereafter. REGISTRATIOH: The bonds are to be registered either as to principal only or as to both principal and interest, c.;1-.:i the form pf registration may be changed, or the bonds dischargeJ from registration, all in accordance with the provisions in the resolution providing for the issuance of the bonds. CALL AND REDEMPTION: 'l'he bonds shall not 0e subject to call or redemption prior to maturity. PURPOSE OF ISSUE: The proceeds of the bonds will be used for the same purposes as were approved by the vot6rs in th& election held March 24, 1970, to wit, to acquire, con- struct and extend sewage facilities to serve lands in the Orange County Sanitation District No. 7 in accordance witl1 tile 8. plans and specifications set forth in the engi~eer's report. SECURITY:. The bonds are issued pursuant to the County Sanitation District Law (Chapter 3, pa:.:t 3, division _, of the Health and Safety Code). Under the County Sanitation District Law, the Board of Directors of the District has power and is obligated to cause the levy of an annual tax upon tl1e real property in the District subject to taxation without limi- tation' of rate or amount, for the payment of the bonds an<l th<2 interest thereon. TAX EXEMPT STATUS: In the opinion of bond counsel, interest on the bonds is exempt from income taxes of the Unit~~ States of America under present federal income tax laws and also from personal income taxes of the State of California under present state income tax laws. TERMS OF SALE INTEREST RATE: The maximum rate bid may not exceed seven per cent (7%) per annum, payable annually the first year, and semiannually on August 1 and February 1 of each year there- after. Each rate bid must be a multiple of 1/20 of one per cent. No bond shall bear more than.one interest rate, and all bonds of the same maturity shall bear the same rate. Each bon~l must bear interest at the rate specified in the bond from its date to its fixed maturity date. Only one coupon will be attached to each bond for each installment of interest thcreo:1, and bids providing for additional or supplemental coupons 1,;ill be rejected. The rate on any maturity or group of maturities shall not be more than one arid one-half per cent (l-1/2%) higher than the interest rate on any other maturity or group of maturities. 9. ·, A~vARD: All bids shall be for not less than all of the bonds hereby offered and for not less than the par value thereof and accrued interest to the date of delivci:y. The bonds shall be sold for cash only. Each bid shall state the total price offered for the bonds, the premium, if any, and the interest rate or rates not to exceed those specified herein, at which the bidder offers to buy. 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 informa.ti ve only and not a part of the bid. HIGHEST BIDDER: The bonds will be awarded to the highest responsible bidder or bidders considering the total price offered, the interest rate or rates speci- fied and the premium offered, if any. The net cost to the District 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 at the coupo.n rate or rates specified in the bid. The award will be made to the bidder or bidders offering the lowest net cost to the District. In the event that b~o or more bidders have bid the same lowest net cost to the District the award shall be made by lot. Interest shall be com- puted on a 360-day year basis. The purchaser must pay accrued interest from the date of the bonds to the date of delivery. The cost of printing the bonds will be borne by the District. 10. " RIGHT OF REJECTION: The District reserves the right, in its discretion, to reject any and all bids anct, to the extent not prohibited by law, to waive any irregu- larity or informality 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 e>:piration of the time herein prescribed for the receipt of proposals; provided, however, that ·the award may be made after the expiration of the specified time if the bidder shall not have given to the Board notice in writing of the withdrawal of such proposal. PLACE OF DELIVERY AND FUNDS FOR PAYMENT: Delivery of the bonds will be made to the successful bidder at such place as is agreeable to both the suc- cessful bidder and the District. Payment for said bonds shall be made in Certified Federal Reserve Bank Funds. PROMPT DELIVERY, CANCELLATION FOR LATE DELIVERY: It is expected that the 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 herein fixed for the receipt of bids, and in such event the successful bidder shall be entitled to the return of the check accompanying his bid. 11. \.. FORM OF BID: Each bid, together with th~ bid check, must be in a sealed envelop~, addressed to the District with the envelope and bid clearly marked: "Proposal for Orange· County Sanitation District No. 7,1970 Sewer Bonds, Series B" BID CHECK: A certified or cashier's check on a responsible bank or trust company in the amount of $20,000, payable to the order of the District, must ac~ompany each proposal as a guaranty that the bidder, if successful, will accept and pay for the bonds in accordqnce with the terms of his bid. The check accom- panying 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 cashed and the proceeds 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 disaffirrri and withdraw the proposal if the interest received by private holders f·rom 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 Internal Revenue Service or by a decision of any federal court, or .shall be declared taxable or be required to be taken into account in computing any federal income taxes 7 by the terms of any federal income tax law enacted subsequent to the date of this notice. 12. LEGAL OPINION: 'l'he unqualified opinion of O'Melveny & Myers, attorneys, approving the validity of the bonds will be furnished the successful bidder at or prior to the date of delivery of the bonds, at the ex- pense of the District. A copy of such legal opinion certified by an officer of the District by his facsimile signa~ure will be printed on the back of each bond unless the purchaser requests that such printed copy be omitte~. No charge will be made to the purchaser for such printing or certification. NO LITIGATION CERTIFICATE: 1'.t the time of pay- ment for and delivery of said bonds the District will furnish the successful bidders a certificate that there is no litigation pending uffecti.ng the validity of tile bonds. ADDITIONAL BONDS: No additional bonds of suid District will be sold prior to June 22, 1972. ADDITIONAL INFORMATION: Requests for informatioll concerning the District and copies of the Official Notice of Sale of the bonds and the official Statement of the District in relation to the offering may be obtained fr~~ the following: Bartle Wells & Associates 260 California Street San Francisco, California 94111 13. GIVEN by order of the Beard of Directors of Orange County Sanitation District No. 7 adopted Ju._n_e_9 __ _ ~~--1.971 County, California NOW, THEREFORE, BE IT RESOLVED that this Board app~oves the foregoing re s olution. ADOPTED this _2..I.b day of Ju.nP ~~...;..__;_~~~~ , 19 71 . ATTEST: Secretary of said Board Chairm a n of t~e Board of Directors of Orange County Sanitation · District No. 7 "- EXHIBIT A UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF ORANGE ORANGE COUNTY SANITATION DISTRICT NO. 7 1970 SEWER BONDS, SERIES B No. _____ _ $5,000 ORANGE COUNTY SANITATION DISTRICT OF ORANGE COUNTY, CALIFORNIA, a district created and existing by virtue of the County Sanitation District Act, now Chapter 3, part 3, Division 5 of the Health and Safety Code of the State of California, FOR VALUE RECEIVED, hereby ack- nowledges itself indebted and promises to pay to the bearer hereof on the 1st day of August, , the sum of $5,000 with interest thereon from the date hereof at the rate of ~~-per cent ( %) per annum, payable annually the first year and semi-annually on February 1, and August l of each year thereafter, on presentation and surrender of the res- pective interest coupons hereto attached. Both principal and interest are payable in lawful money of the United States of America at the office of the County Treasurer of the County of Orange, in the City of Santa Ana, State of California. This bond is one of a series of 200 bonds of like tenor and date, except as to maturity and except that the inter.est rates thereof may differ, numbered respectively from 1 to 200, inclusive, amounting in the aggregate to One million dollars ($1,000,000). 15. This bond is issued by the Board of .Directors of Orange County Sanitation District No. 7 of Orange County, California pursuant to a resolution of the Board of Directors of the District, adopted and to the County Sanitation District Act. It is hereby certified, recited and declared that all of the proceedings of the Board of Directors of Orange County Sanitation District No. 7 of Orange County, California, in the matter of the issuance of this bond fulfill the requirements of the County Sanitation District Act and the Constitution of the State of California. This bond is in the form prescribed by resolu- tion of the Board of Directors Qf Orange County Sanitation District of Orange County, California, and the money for the redemption of this bond and the payment of interest thereon shall be derived from an annual tax upon the taxable real property in the District, and all of such property in the District shall be and remain liable to be taxed for such payments. IN WITNESS WHEREOF, the Board of Directors of Orange County Sanitation Di.strict of Orange County, California, has caused this bond to be signed by its Chairman by his facsimile signature and countersigned by the Auditor of the District, and the seal of the District to be affixed thereto, and the interest coupons hereto lG. ", attached to be signed by the Auditor by his facsimile signature, this 1st day of August, 1971. COUNTERSIGNED: CHAIRMAN OF THE BOARD OF O:IRECTORS OF ORANGE COUNTY SANITATION DIS- TRICT NO. 7 OF ORANGE COUNTY, CALIFOIUUA AUDITOR OF ORANGE COUNTY SANITATION DISTRicr NO. 7 OF ORANGE COUNTY, CALIFORNIA (SEAL) 17. ""' Coupon No. On the First day of ORANGE COUNTY SANITATION DISTRICT NO. 7 OF ORANGE COUNTY, CALIFORNIA, HEREBY PROMISES TO PAY TO the bearer hereof at the office of the County Treasurer of the County of Orange in the City of Santa Ana, State of California, the sum of in lawful money of the United States of America, being the interest then due on its 1970 Sewer Bonds, Series B, I 19 $ ___ _ dated August 1, 1971 Bond No. AUDITOR OF ORANGE COUNTY SANITATION DISTRICT NO. 7 OF ORANGE COUNTY, CALIFORNIA 18, .. 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 registerd in either of said forms, may be changed to regis- tration in the other of said forms or dis- charged from registration. Each registration, transfer after regis- tration, change of form of registration, or discharge from registration of this bond shall be entered by the County Treasurer in books kept for the purpose and noted by .said Treasurer in the registration blank below. Upon registration as to both princiapl and interest, all unmatured coupons pertaining hereto shall be surrendered to the County Treasurer and shall be preserved by said Treasurer. · So long as this bond is registered no transfer hereof shall be valid for any pur- pose unless made by the registered owner and entered and noted as herein provided, and the principal hereof and any redemption premium shall be payable only to the registered owner, or to his order. Interest on this bond 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 and if it is discharged from registration, there shall be attached hereto coupons repre- senting interest hereon to become due there- after to the date of maturity hereof. In lieu thereof, and upon surrender and cancel- lation hereof, the County Treasurer may issue in exchange therefor a new bond, with such coupons attached, identical with this bond, except for the previous notations on the registration blank hereon, and except that the signatures on the new bond shall be those of the persons holding the offices at the time of affixing such signatures. The issuance 6f any such new bond or new coupons shall be at the expense of the registered owner. i9. Each discharge hereof from registrat.ion 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 in- strument, negotiable by delivery as if it had never been registered. Each request for regis- tration, transfer, change, or discharge must be in form satisfactory to the County Treasurer 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 Registration In Whose Name Registered 20. Manner of Registration Signature of Treasurer STATE OF CALIFORNIA ") ) SS •. COUNTY OF orurnGE ) I, J. Wayne Sylvester , Secretary of the Board of Directors of Orange County Sanitation District, No. 7, DO HEREBY CERTIFY that. the foregoing resolution was duly adopted by the Board of Directors of said agency at a regular meeting of said Board held on the 9-fFi-c'l.ay of J-une , 1971, and that it was so adopted by the for.Lowing vote: AYES: Directors Clifton Miller (Chairman), Lorin Griset, Edgar Hirth, Don Smith and Robert Battin NOES: Directors None · ~~~~~~~~~- ABSENT: Directors ~~ge County Sanitation ·o. 7 !.end of the Board of thereof. STATE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) I, of the Board District No. foregoin_g is No. 71-85-7 been~ J. Wayne Sylvester , Secretary of Directors of Orange County Sanitation 7, DO HEREBY CERTIFY that the above and a full, true and correct copy of Resolution of said Board, and that the same has not or repealed. DATED: June 9 I 1971. ~~~~~~~~~ (SEAL) ange County Sanitation No. 1 and of the Board of thereof.