2007 California Water Code Chapter 4.95. Alternative Provisions For The Issuance Of Bonds Of Improvement Districts

CA Codes (wat:36447-36447.14)

36447.  This chapter shall apply to the Irvine Ranch Water District,
the Santa Margarita Water District, and the Moulton-Niguel Water
District.  As used in this chapter, "district" means the Irvine Ranch
Water District, the Santa Margarita Water District, or the
Moulton-Niguel Water District.



36447.1.  Bonds for two or more improvement districts of the
district may be issued and sold as consolidated bonds of the district
in substantially the same manner and upon the same terms and
conditions as bonds of the entire district, subject to all of the
following conditions:
   (a) The consolidated bonds shall specify the included amount of
par value issued on behalf of each improvement district, and the
remaining authorized bonds of each improvement district shall be
reduced by its respective included amount so specified.
   (b) In advance of the sale of consolidated bonds, the board shall
find that the sale of the included bonds as consolidated bonds shall
not increase the cost that any improvement district will pay for its
included bonds over the cost it would have paid had its bonds been
sold separately.
   (c) The maximum portion of any assessment for the payment of each
series of the consolidated bonds and the interest thereon that may be
obtained from annual assessments to be levied upon and collected
from lands within each improvement district shall be the proportion
which the par value of the included bonds of the improvement district
bears to the total par value of that series of the consolidated
bonds.
   (d) The board shall include in the resolution providing for
issuance of each series of consolidated bonds provisions to insure
that assessments to be levied upon and collected from lands within
each included improvement district shall be limited to the amount
required to pay the improvement district's proportional share as
determined under subdivision (c), except to the extent that provision
for payment of that share has been made by the board, as may be
permitted by law, and that the improvement district's share shall not
be collected or paid for, or pledged to the payment of, any other
included improvement district's proportional share.
   (e) The board shall include in the resolution providing for
issuance of each series of consolidated bonds provisions to insure
that the proceeds of the consolidated bonds disbursed into the fund
provided for in Section 35998.1 are apportioned within the fund
according to each included improvement district's share determined
under subdivision (c), so that separate apportionments are accounted
for and used for the purposes of the respective improvement districts
in the manner contemplated by Section 36427.
   (f) The board shall include in the resolution providing for
issuance of each series of consolidated bonds provisions to insure
that any bond reserve fund established pursuant to Sections 35910 and
35911 is established proportionately for each of the included
improvement districts and, to the extent the fund must be used, that
moneys in the fund shall be disbursed only to the extent of the share
apportioned therein to the improvement district on whose behalf it
is disbursed, and that any charges or annual assessments used to
establish the bond reserve fund shall be set aside within the bond
reserve fund only to the account of the improvement district from
which they were obtained.
   (g) If the consolidated bonds include provisions for redemption,
the board shall also include in the resolution providing for issuance
provisions to insure that any moneys collected from within the
improvement districts to establish a redemption fund shall be limited
to each improvement district's proportional share of the
consolidated bonds as determined in subdivision (c).
   (h) The consolidated bonds shall be issued in the name of the
district and, if general obligation bonds, shall be designated "Bonds
of ____ Water District," and each bond shall state that it is issued
on behalf of the included improvement districts whose respective
shares of the par value shall be specified, and shall state that the
assessment for payment thereof shall be limited to annual assessments
to be levied upon and collected from the lands within each of the
specified improvement districts in the stated proportions of the
total par value, except to the extent that provision for that payment
has been made by the board as may be permitted by law.



36447.2.  The provisions of Chapters 2 (commencing with Section
35950) and 3 (commencing with Section 36150) shall apply to the
consolidated bonds to the extent they may be made applicable.



36447.3.  It is the intent of the Legislature in enacting this
chapter to preserve the status of the improvement districts' bonds
which have been consolidated, so that the bonds shall continue to
constitute "indebtedness approved by the voters" pursuant to
subdivision (b) of Section 1 of Article XIIIA of the California
Constitution and shall reduce accordingly the remaining authorized
bonds of the improvement districts.  In order to preserve the status
of the included bonds, the provisions of this chapter shall be
interpreted and applied in a manner so that the burden on the land
within the improvement districts does not result in any increase in
the amount of assessments that will be levied to pay each improvement
district's proportionate share of the principal and interest
payments with respect to each series of the consolidated bonds, over
the amount it would have paid had its bonds been sold under other
provisions of law.  The added financial flexibility included in this
chapter has been granted to the district only on the basis that the
consolidating of improvement district bond authorizations and the
permission to utilize negotiated sale of bonds, variable interest
rates, refunding of existing improvement district bonds by exchange,
or otherwise, and the other features of this chapter shall be
authorized only to the extent that the burden upon the property
owners of the improvement districts is not increased.



36447.4.  Before adopting a resolution approving the issuance of any
consolidated bonds pursuant to this chapter and Chapter 3
(commencing with Section 36150), the board shall adopt a resolution
of intention, which shall approve a proposed resolution of issuance
and state the time and place for a hearing by the board on the
proposed resolution of issuance.  Notice of the hearing shall be
given by publishing a copy of the resolution of intention in a
newspaper of general circulation published in Orange County pursuant
to Section 6066 of the Government Code, with the first publication to
be at least 14 days prior to the time fixed for the hearing.  Notice
shall also be given by posting a copy of the resolution of intention
in three public places within each improvement district whose bonds
are proposed to be included in the consolidated bonds, for at least
14 days prior to the time fixed for the hearing.  No notice other
than that required by this section need be given.



36447.5.  At the time and place so fixed or at any time or place to
which the hearing is continued, the board shall hold the hearing
provided by the resolution of intention at which hearing any person
interested, including all persons owning land in the improvement
districts whose bonds are proposed to be included in the consolidated
bonds or any person otherwise interested in the consolidated bonds,
may appear and be heard concerning any matter set forth in the
resolution of intention and proposed resolution of issuance or any
matters material thereto, including the question of whether the
burden on the lands of any of the included improvement districts
would be increased.



36447.6.  If the board finds that protests against the proposed
issuance of any consolidated bonds are signed by the owners of more
than one-half of the area of the land in any improvement district
whose bonds are proposed to be included in the consolidated bonds,
all further proceedings under the resolution of intention are barred,
and no new resolution of intention for the issuance of consolidated
bonds which would include bonds for the improvement district may be
passed within six months after the decision of the board on the
hearing, unless the protests are overruled by an affirmative vote of
four-fifths of the members of the  board.



36447.7.  At the conclusion of the hearing, in the absence of a
majority protest pursuant to Section 36447.6, the board shall adopt a
resolution making the finding required by subdivision (b) of Section
36447.1, and, if any of the features provided for by Sections
36447.9 and 36447.10 are to be included in the consolidated bonds,
also making a finding that the features so utilized will not increase
the cost that any improvement district will pay over the cost that
it would have paid had the bonds been sold without those features.
All findings required by this section shall be supported by
substantial evidence, which shall mean evidence that is reasonable,
credible, and of solid value and ponderable legal significance, based
upon the record as a whole.  The findings shall also be made as to
any modifications made by the board in the terms of the proposed
resolution of issuance as a result of the hearing.  If the board
makes the foregoing findings in accordance with the provisions of
this chapter, the board may adopt the proposed resolution of issuance
in final form.



36447.9.  The board may, if it determines that to do so would
produce a lower interest cost on the bonds, sell bonds at private
sale without advertising for bids.



36447.10.  The board may provide for the bonds to bear a variable
interest rate, for the manner and intervals in which the rate shall
vary, and for the dates on which the interest shall be payable.
   The variable rate shall on no day exceed the maximum rate
permitted for bonds of the district on that day by Section 53541 of
the Government Code or any other applicable provisions of law.
However, the variable interest rate so permitted may on any day
exceed that maximum rate if the interest paid on the bonds from their
date of original issuance to that day does not exceed the total
interest which would have been permitted to have been paid on the
bonds if the bonds had borne interest at all times from the date of
issuance to that day at the maximum rate permitted from time to time
by Section 53541 of the Government Code or any other applicable
provisions of law.
   The district may enter into arrangements for the remarketing or
resale of the bonds, the purchase and holding of the bonds, liquidity
support, debt service insurance or other credit enhancement, and
such other matters related to the bonds as the board determines to be
necessary or appropriate.  The board may provide for the payment of
the fees and costs of those arrangements from the proceeds of the
bonds or from any other lawfully available source designated by the
board, or from any combination thereof.



36447.11.  Refunding bonds issued under Article 6 (commencing with
Section 36060) of Chapter 2 may be issued in the manner set forth in
this chapter regardless of whether or not the bonds being refunded
were issued in the manner set forth in this chapter.  The par value
of each improvement district's refunding bonds  included in the
consolidated refunding bonds shall be only sufficient to provide for
the refunding of that improvement district's bonds to be refunded.



36447.12.  In lieu of refunding outstanding bonds by defeasing or
calling for redemption, the board may also refund under Article 6
(commencing with Section 36060) of Chapter 2 by purchasing the bonds
to be refunded with proceeds of the refunding bonds or by acquiring
the bonds to be refunded and exchanging them for the refunding bonds,
in either case in a negotiated transaction with the bondholder or
through an intermediary agent of the district.



36447.14.  All acts and proceedings taken prior to the effective
date of this chapter, which would be in accordance with this chapter
if taken after the effective date, are hereby confirmed, validated,
and declared legally effective.