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HomeMy WebLinkAboutResolution 17-82 ATASCADERO COUNTY SANITATION DISTRICT RESOLUTION NO. 17-32 RESOLUTION SETTING THE TIME AND PLACE FOR THE SALE OF $1,300,000 PRINCIPAL AMOUNT OF ATASCADERO COUNTY SANITATION DISTRICT 1982 SEWER REVENUE BONDS AND DIRECTING NOTICE OF SALE OF SAID BONDS TO BE GIVEN WHEREAS, the Board of Directors of the Atascadero County Sanitation District has duly provided for the issuance of $1,300,000 principal amount of Atascadero County Sanitation District 1982 Sewer Revenue Bonds, and it is desirable that said bonds be offered for public sale at this time; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Atascadero County Sanitation District, as follows: Section 1. The Atascadero County Sanitation District 1982 Sewer Revenue Bonds shall be offered for public sale by this Board of Directors on Monday, May 10, 1982, at the hour of 8:00 o'clock P.M. , and the Secretary of the Board of Directors of this District is hereby authorized and directed to cause a notice of sale of said bonds to be published once in the Atascadero News, a newspaper of general circulation published in the District, which such notice of sale shall be in substantially the following form: OFFICIAL NOTICE OF SALE $1,300,000 ATASCADERO COUNTY SANITATION DISTRICT 1982 SEWER REVENUE BONDS NOTICE IS HEREBY GIVEN that sealed proposals will be received and openedbythe Secretary of the Board of Directors of the Atascadero County Sanitation District (the "District" ) , at the office of the Secretary of the Board of Directors of the District, Atascadero City Hall, 6500 Palma Avenue, Atascadero, California 93422, on MONDAY, MAY 10, 1982 at the hour of 8:00 o'clock P.M. for the purchase of $1,300,000 principal amount of Atascadero County Sanitation District 1982 Sewer Revenue Bonds (the "bonds") authorized to be issued under the provisions of a resolution of the Board of Directors of the District adopted on April 26, 1982 (the "resolution") . The bonds constitute the entire principal amount of an issue authorized at an election held in the District on November 7, 1978. The bonds are more particu- larly described in the resolution (which is incorporated herein by reference) and a copy thereof will be furnished to any interested bidder upon request. The bonds are generally described below. DATE: The bonds are dated June 1, 1982 . ISSUE AND $1,300,000 principal amount of coupon DENOMINATION: bonds numbered consecutively from 1 to 2 260, both inclusive, of the denomination of $5,000, bearing interest from June 1,. 1982; or, at the option of the purchaser, one fully registered installment bond in the aggregate principal amount of not to exceed $1,300,000 maturing in installments in accordance with the serial maturities of the bonds, bearing interest determined on the aggregate of payments therefor from the respective dates thereof, as said payments and the dates thereof are endorsed thereon by the County Treasurer of San Luis Obispo County, which installment bond is convertible at any time after June 1, 1983 upon ninety (90) days' notice into coupon bonds, at the option of the owner thereof, at the expense of the District. MATURITIES: The bonds mature serially in consecutive numerical order, from lower to higher, on June 1 in each of the years as follows: Principal Maturity Date (June 1) Amount (both years inclusive) $10,000 1984-1985 15,000 1986-1992 20,000 1993-1997 25,000 1998-2001 30,000 2002-2005 35,000 2006-2008 40,000 2009-2011 45, 000 2012-2013 50,000 2014-2015 55,000 2016-2017 60,000 2018-2019 65,000 2020 70,000 2021 75,000 2022 REDEMPTION: Bonds maturing by their terms on or prior to June 1, 1992 are not subject to redemption prior to their fixed maturity dates. Bonds maturing by their terms on or after June 1, 1993 are subject to redemption prior to their fixed maturity dates, at the 3 option of the District, on June 1, 1992, but not prior thereto, and on any interest payment date thereafter prior to maturity, as a whole or in part in inverse numerical order, at the principal amount thereof and accrued interest to date of redemption. INTEREST RATE: Five per. cent (5%) per annum, payable annually the first year on June 1, 1983 and semiannually thereafter on December 1 and June 1 in each year. PAYMENT: Both principal and interest are payable in lawful money of the United States of America at the principal office of Bank of America National Trust and Savings Association, in San Francisco, California. EXECUTION AND The bonds will be executed by the REGISTRATION: manual signature of at least one official authorized to execute the bonds. The bonds issued in coupon form are registrable only as to both principal and interest, and are not subject to discharge from registration. PURPOSE: The bonds are authorized for the purpose of providing funds for the acquisition and construction of improvements to the sewer system of the District. SECURITY: The bonds are revenue bonds payable exclusively from the Net Revenues of the Enterprise, as those terms are defined in the resolution, and bidders are referred to the resolution for further particu- lars. 4 TAX EXEMPT In the event that prior to the delivery STATUS: of the bonds (i) the income received by any private holder from bonds of the same type and character shall be declared to be taxable (either at the time of such declaration or at any future date) under any federal income tax laws, either by the terms of such laws or by a ruling of a federal income tax authority or official which is followed by the Internal Revenue Service, or by decision of any federal court, or (ii) any federal income tax law is adopted which will have a substantial adverse tax effect on holders of the bonds as such, the successful bidder may, at his option, prior to the tender of the bonds by the District, be relieved of his obligation under the contract to purchase the bonds and in such case the deposit accompanying his bid will be returned. LEGAL OPINION: The legal opinion of Orrick, Herrington & Sutcliffe, A Professional Corporation, of San Francisco, California, approving the validity of the bonds, will be furnished to the successful bidder without charge. TERMS OF SALE Highest Bid; Bid The bonds will be awarded to the highest of United States of America: bidder, considering the premium offered (if any) . The United States of America, Farmers Home Administration, has con- tracted with the District to purchase all of the bonds at the par value thereof, provided no equal or better bid for the bonds is received by the District. The purchaser must pay accrued interest on the bonds issued in coupon form com- 5 puted 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 The Board of Directors of the District Rejection: reserves the right, in its discretion, to reject any and all bids and to waive any irregularity or informality in any bid. Prompt Award: The Board of Directors of the District will take action awarding the bonds or rejecting all bids not later than 24 hours after the expira- tion of the time herein prescribed for the receipt of pro- posals, unless such time of award is waived by the successful bidder. Notice of the award will be given promptly to the successful bidder. Delivery Delivery of the bonds will be made to of Bonds: the successful bidder at the office of the County Treasurer of San Luis Obispo County, in San Luis Obispo, California. Right of The successful bidder shall have the Cancellation: right, at his option, to cancel the contract of purchase if the District shall fail to execute the bonds and tender the same for delivery by June 1, 1983, and in such event the successful bidder shall be entitled to the return of the deposit accom- panying his bid. Form of Bid: All bids must be for not less than all of the bonds offered for sale and not less than the par value thereof and accrued interest to date of delivery. Each bid, together with bidder' s check, must be enclosed in a sealed envelope addressed to the Board of 6 Directors of the Atascadero County Sanitation District and endorsed "Proposal for Atascadero County Sanitation District 1982 Sewer Revenue Bonds. " All bids must either be mailed to the office of the Secretary of the Board of Directors of the District, Atascadero City Hall, P.O. Box 747, Atascadero, California 93423, in time to be received by 8:00 o'clock P.M. on May 10, 1982, or delivered to such place by such time on such date. Bid Check: With each bid (except that of the United States of America) must be submitted a certified check or cashier' s check for $10,000. Each such check must be drawn on a bank or trust company transacting business in the State of California, payable to the order of the District to secure the District from any loss resulting from the failure of the bidder to comply with the terms of his bid. Checks of all bidders (except the successful bidder) will be returned by the District by mail promptly following the sale date above specified. No interest will be paid upon the deposit made by the successful bidder. Net Interest Bidders are requested, but not required, Cost: to supply an estimate of the total net interest cost to the District on the basis of their respective bids, which shall be considered as informative only and not binding on either the bidder or the District. There is no litigation pending concerning the validity of the above issue, the corporate existence of the District or the title of the officers of the District to 7 their respective offices, and the Board of Directors of the District will furnish to the successful bidder a no-litigation certificate certifying to the foregoing as of and at the time of the delivery of the bonds. Dated: April 26, 1982. Secretary of the Board of Directors of Atascadero County Sanitation District 8 Section 2. The Board of Directors of the Atascadero County Sanitation District covenants with the holders of all of said bonds at any time outstanding that it will make no use of the proceeds of any of said bonds which will cause any of said bonds to be "arbitrage bonds" subject to federal income taxation by reason of Section 103(c) of the Internal Revenue Code of 1954. To that end, so long as any of said bonds are outstanding, the District shall comply with all requirements of said Section 103(c) and of all regulations thereunder, to the extent that such requirements are, at the time, applicable to said bonds and in effect. Section 3 . This resolution shall be forthwith entered upon the minutes of this Board and shall take effect immediately upon adoption. PASSED AND ADOPTED by the Board of Directors of the Atascadero County Sanitation District this 26th day of April, 1982, by the following vote AYES: Directors Highland, Mackey, Nelson Stover and Wilkins NOES: None ABSENT: None ,s Pr sident of the oard of Direc ors of Atascadero County Sanitation District [SEAL] Attest: 1%11�zw� S ret of the Boara of Directors of Atasdero County Sanitation District 9 SECRETARY'S CERTIFICATE I, Murray L. Warden Secretary of the Board of Directors of Atascadero County Sanitation District, San Luis Obispo County, California, hereby certify as follows: The foregoing is a full, true and correct .copy of a resolution duly adopted at a regular meetingof said Board of Directors duly and regularly and legally held at the regular �^- +.• �w,.+,.tx .-�a .�,..:. . meeting place thereof on April 26, 1982, of which meeting all of the members of said Board of Directors had due notice and t' 11 at which a majority thereof was present. At said meeting said resolution was adopted by the � x ,s" �t? � s4�etaS� following vote: t AYES: Directors Highland, Mackey, Nelson, Stover and l9ilkins NOES: None ABSENT: None I have carefully compared the same with the origi- nal minutes of said meeting on file and of record in said District, and the foregoing is a full, true and correct copy rF ' of the original resolution adopted at- said meeting and entered in said minutes. .� Said resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: April 27, 1982. 77 by� w r4 _kid Sec etary of the Board of rectors of A asca ro County Sanitation District . +vr,tzw srKn 5�, 10: