Notice inviting sealed proposals for the purchase of $8,700,000 waterworks bonds of Las Vegas Valley Water District, April 5, 1954

NOTICE INVITING SEALED PROPOSALS FOR THE PURCHASE OF $8,700,000 WATERWORKS BONDS, 1954, OF LAS VEGAS VALLEY WATER DISTRICT. NOTICE IS HEREBY GIVEN that the Board of Directors of Las Vegas Valley Water District, situated in Clark County, Nevada, will receive seated bids or proposals for the purchase of $8,700,000 par value Waterworks Bonds of said District at its regular meeting place, 135 South Fourth Street, Las Vegas, Nevada, up to the hour of 10:00 o'clock A.M., Pacific Daylight Time, April 28, 1954. Said District is organized and the issuance of said bonds is under and pursuant to Chapter 167, Statutes of Nevada, 1947, as amended and supplemented by Chapter 130, Statutes of Nevada, 1949, and Chapter 307, Statutes of Nevada, 1951. The objects and purposes for which the bonds are to be issued are as follows: A. The acquisition and construction by the District of facilities for the development, production, pumping, storage, transmission and distribution of water, including (1) the acquisition of water, water rights, water bearing lands, and the acquisition and construction of water wells, pumps and pumping plants, storage facilities, transmission and distribution lines and facilities, and the relocation of water transmission mains and pumping plants or parts thereof; (2) the construction of repairs and betterments to, of additions to and extensions of water pumping, storage, transmission and distribution facilities; (3) the acquisition and construction of electric power lines and equipment for the pumping of water; (4) the acquisition of all lands, easements, rights of way, works, and real or personal property constituting or appurtenant to or necessary or convenient for any of the above mentioned facilities; (5) the providing of funds for the operation of any of the above mentioned facilities; and (6) the payment of all incidental expenses in connection with such acquisition and construction; B. The payment of expenses incurred in connection with the authorization and issuance of the bonds, the payment of interest on the bonds during the period of construction of any improvements for which the bonds are voted and for six months thereafter, and repayment to Clark County of any amounts advanced to the District, by said County. The bonds are designated "WATERWORKS BONDS, 1954," are to be eight thousand seven hundred in number, numbered 1 to 8700, inclusive, of the denomination of $1,000 each, to be dated March 1, 1954, to be payable on March 1 in each year in the numbers and amounts set forth in the following maturity table, to wit: Said bonds are to bear interest at a coupon rate or rates to be determined upon the sale thereof, but not to exceed six per cent (6%) per annum, payable annually for the first year and semiannually thereafter. The bonds and the interest thereon are to be payable in lawful money of the United States of America at the office of the Treasurer of said District in the City of Las Vegas, Nevada, or at any fiscal agency of the Las Vegas Valley Water District in The City of Los Angeles, California, in the City of Chicago, Illinois, or in the City of New York, New York, at the option of the holder. The bonds maturing on or prior to March 1, 1964, shall not be subject to redemption. Bonds maturing on March 1, 1990, may be called on March 1, 1959, or on any interest payment date thereafter, and redeemed from revenues, but shall not be redeemed prior to March 1, 1964, from the proceeds of refunding bonds. ^^ds M^JrKy ^IneK-sKe'" Jf^nds M^ty 1 to 100 $100,000 1957 2,576 to 2,800 $225,000 1974 101 to 205 105,000 1958 2,801 to 3,035 235,000 1975 206 to 315 110,000 1959 3,036 to 3,280 245,000 1976 316 to 430 115,000 1960 3,281 to 3,540 260,000 1977 431 to 555 125,000 1961 3,541 to 3,810 270,000 1978 556 to 685 130,000 1962 3,811 to 4,095 285,000 1979 686 to 820 135,000 1963 4,096 to 4,390 295,000 1980 821 to 960 140,000 1964 4,391 to 4,700 310,000 1981 961 to 1,110 150,000 1965 4,701 to 5,025 325,000 1982 1,111 to 1,265 155,000 1966 5,026 to 5,365 340,000 1983 1,266 to 1,425 160,000 1967 5,366 to 5,720 355,000 1984 1,426 to 1,595 170,000 1968 5,721 to 6,095 375,000 1985 1,596 to 1,775 180,000 1969 6,096 to 6,485 390,000 1986 1,776 to 1,960 185,000 1970 6,486 to 6,895 410,000 1987 1,961 to 2,155 195,000 1971 6,896 to 7,325 430,000 1988 2,156 to 2,360 205,000 1972 7,326 to 7,775 450,000 1989 2,361 to 2,575 215,000 1973 7,776 to 8,700 925,000 1990 Jear of D 1' /X^rKt D ^ 1957 $100,000 $ 45,000 $ 55,000 1974 $225,000 $ 95,000 $130,000 1958 105,000 45,000 60,000 1975 235,000 100,000 135,000 1959 110,000 45,000 65,000 1976 245,000 105,000 140,000 1960 115,000 50,000 65,000 1977 260,000 110,000 i 50,000 1961 125,000 55,000 70,000 1978 270,000 115,000 155,000 1962 130,000 55,000 75,000 1979 285,000 125,000 160,000 1963 135,000 60,000 75,000 1980 295,000 125,000 170,000 1964 140,000 60,000 80,000 1981 310,000 135,000 175,000 1965 150,000 65,000 85,000 1982 325,000 140,000 185,000 1966 155,000 65,000 90,000 1983 340,000 145,000 195,000 1967 160,000 70,000 90,000 1984 355,000 155,000 200,000 1968 170,000 75,000 95,000 1985 375,000 160,000 215,000 1969 180,000 80,000 100,000 1986 390,000 170,000 220,000 1970 185,000 80,000 105,000 1987 410,000 175,000 235,000 1971 195,000 85,000 110,000 1988 430,000 185,000 245,000 1972 205,000 90,000 115,000 1989 450,000 195,000 255,000 1973 215,000 95,000 120,000 1990 925,000 395,000 530,000 Bonds maturing on or after March 1, 1965, may be called and redeemed on March 1, 1964, or on any interest payment date thereafter, from the proceeds of refunding bonds or from any other available funds. AM bonds subject to redemption shall be redeemed in inverse numerical order, beginning with the highest numbered bond. Not earlier than November 1, 1958, any bonds subject to redemption may be purchased by the District either at public or private sale, provided that the purchase price shall not exceed the redemption price. On March 1, 1959, or on any interest payment date thereafter, any amounts in the Redemption Fund shall be used to call for redemption such amount of bonds then subject to redemption as will exhaust the Redemption Fund, provided that redemption shall not be required unless sufficient moneys are in the Fund to redeem at least $50,000 par value principal of bonds. The redemption price shall be 100.5% of the principal amount, plus ^ of 1% of such principal amount for each whole twelve months' period, or fraction thereof, from the redemption date to the maturity date, but the redemption price, including premium, shall not exceed 105%) of such principal amount. For further and more complete information as to redemption prior to maturity and the manner and notice thereof, reference is made to the resolution authorizing the issuance of the bonds. Said bonds are general obligations of the District for the payment of which the full faith, credit and resources of the District are pledged. In addition, the resolution of issuance contains various covenants and provisions made for the security and protection of the bondholders, including covenants relating to operation and maintenance, rates and charges, the use of revenues, the establishment of funds, insurance, records and accounts, audits and the limitations on additional debt payable from such revenues; said bonds shall be issued under and pursuant to said resolution. Bidders are referred to said resolution for the terms and conditions of the covenants. Each bid must be for all of the bonds offered for sale and no bid for a portion only of the bonds will be considered. However, bidders may bid with delivery as follows: Alternative (1), for immediate delivery of the entire issue of $8,700,000; Alternative (2), for immediate delivery of a first installment in an amount fixed by the bidder but not less than $3,750,000 of said issue, the second installment to consist of the remainder of said issue which is to be delivered and paid for upon notice given as hereinafter provided. Any bidder may submit a proposal under both Alternatives (1) and (2). If the bonds are awarded upon a bid made pursuant to Alternative (2), the amount of bonds in each maturity of the years 1957 to 1989, inclusive, to be delivered in the first installment shall be the nearest $5,000 principal of each such maturity, as determined by the following proportion: The amount of bonds to be delivered in the first installment from each maturity will be in the same proportion to the total amount of bonds in that maturity as the total amount of all bonds bid for delivery in the first installment bears to $8,700,000. The amount of bonds in the 1990 maturity to be delivered in the first installment will be the remaining amount of bonds bid for delivery in the first installment. The bonds delivered in the first installment will be the lowest numbered bonds in each maturity. The amount and numbers of bonds in each maturity of the years 1957 to 1990, inclusive, to be delivered in the second installment will be the balance of the bonds in each maturity remaining after delivery of the first installment as hereinbefore provided. If a bid is made for delivery of $3,750,000 of bonds in the first installment, the amount of bonds to be delivered in the first and second installments, respectively, in each maturity of the years 1957 to 1990, inclusive, shall be as follows: Bonds bid for immediate delivery under Alternative (1) or delivery in the first installment under Alternative (2) will be delivered not later than thirty (30) days from the date of award. Bonds bid under Alternative (2) for delivery in the second installment will be delivered not sooner than six months nor later than one year from the date of award. At any time after the expiration of said six months and before the expiration of said one year, either the District or the bidder to whom the bonds shall have been awarded, upon giving written notice by registered mail to the other, may require delivery of and payment for the second installment of bonds. Not more than 10 days after the receipt of said written notice, the second installment of said bonds shall be delivered and paid for. The bonds shall be sold for cash only and accrued interest to the date or dates of delivery. Each bid shall state that the bidder offers par and Accrued interest to the date or dates of delivery, the premium, if any, and the interest rate or rates, payable annually for the first year and semiannually thereafter, at which the bidder ol?ers to buy the bonds. The coupon rate shall not exceed six per cent (6%) per annum. Said interest rate or rates must be in multiples of 1/4 of 1% or 1/10 of 1%. Each bid shall state a single interest rate for all bonds of the same maturity. The coupon rate or rates of bonds bid for immediate delivery under Alternative (1) and those bonds bid for delivery in the first installment under Alternative (2) shall be the interest rate or rates stated in the successful bid. The coupon rate or rates of the bonds bid under Alternative (2) for delivery in the second installment shall be determined as hereinafter provided. On any proposal under Alternative (2), interest on the bonds to be delivered in the second installment shall be adjusted as follows: The net annual yield to maturity (determined from the interest rates stated in the bid but disregarding the premium bid, if any) of bonds shall be adjusted on the date of delivery of said second installment in accordance with the difference in yields of "The Bond Buyer's 20-Bond Index," as published in the weekly edition of The Bond Buyer next preceding the date of award of said bonds (the "award edition") and the weekly edition next preceding the date of delivery of said second installment of bonds (the "delivery edition"). Said adjustment shall be made as follows: The coupon rate or rates of said bonds shall be the interest rate or rates stated in the bid increased or decreased by the nearest 1/10 of 1% of the increase or decrease in said Index as the same is published in said award edition and in said delivery edition. After adjusting the coupon rates as hereinbefore provided, any further adjustment in said net annual yield which may be required by reason of the increase or decrease in said Index being expressed in 1/100's of 1% shall be computed as a discount or premium; any such premium or discount shall be added to or deducted from, as the case may be, the premium, if any, stated in the bid and the remaining premium or discount, if any, shall be added to or deducted from the purchase price of the bonds to be delivered in the second installment. In no event shall any such adjustment be made so as to result in a coupon rate or rates in excess of six per cent (6%) per annum or an interest yield of more than six per cent (6%) per annum, computed to average maturity according to standard tables of bond values. Notwithstanding any provisions herein which might require a greater adjustment by reason of an increase in the interest yields of said Index between the award edition and the delivery edition, the successful bidder must accept and take delivery of bonds in said second installment at an interest rate or rates and an interest yield which do not exceed the maximums specified in this paragraph. A certified or cashier's check drawn on a responsible bank or trust company in the sum of $200,000 payable to the order of Las Vegas Valley Water 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 proceeds of the check accompanying 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 Las Vegas Valley Water District), said proceeds shall then be retained by the District. If the bonds are awarded upon a bid made pursuant to Alternative (2), the proceeds of the check shall be applied upon the purchase price of the bonds delivered in the second installment. In computing the amount to be so applied, the District will allow the bidder interest at the rate of 4% per annum on the sum of said certified check from the date of opening of the bids on the bonds to the date of delivery of said second installment of bonds. At any time before the bonds are tendered for delivery, the bidder may disaffirm and withdraw the proposal if the interest received by private holders from bonds of the same type and character shall be declared to be taxable income under present federal income tax law, either by a ruling of the Bureau of Internal Revenue or by a decision of any federal court, or shall be declared taxable by the terms of any federal income tax law enacted subsequent to the date of this notice. The unqualified legal opinion of O'Melveny & Myers, attorneys, Los Angeles, California, approving the validity of said bonds will be furnished the successful bidder at or prior to the date or dates of delivery of the bonds, at the expense of the District. At the time or times of payment for and delivery of said bonds, the District will furnish the successful bidder a certificate that there is no litigation pending affecting the validity of said bonds. THE BIDDER MAY ATTACH SUCH TERMS AND CONDITIONS TO HIS BID OR PROPOSAL AS HE MAY SEE FIT, AND THE BOARD OF DIRECTORS OF THE DISTRICT WILL CONSIDER NOT ONLY THE PRICE OFFERED BUT ALSO THE VARIOUS TERMS AND CONDITIONS SUBMITTED IN ANY PROPOSAL. THE BOARD WILL AWARD THE BONDS ro SUCH BIDDER OR BIDDERS AS MAY SUBMIT THE PROPOSAL OR PROPOSALS DEEMED MOST ADVANTAGEOUS TO THE DISTRICT. THE BOARD OF DIRECTORS RESERVES THE RIGHT TO REJECT ANY OR ALL BIDS OR PROPOSALS OR TO THE EXTENT PERMITTED BY LAW TO WAIVE ANY IRREGULARITY OR INFORMALITY IN ANY BID OR PROPOSAL. The bids will be opened at the meeting of the Board of Directors to be held April 28, 1954, at 10:00 )'clock A.M., Pacific Daylight Time, at the office of the District, 135 South Fourth Street, Las Vegas, Nevada. Bidders are invited to be present at the opening of the bids or proposals. Each bid or proposal must be Arm for a period of time specified therein, not less than 4?-hours after the expiration of the time or the receipt of bids and proposals as herein specified, and shall be subject to acceptance within that period; provided that such acceptance may be made after the expiration of said period if the bidder "Shall lot have given the Board notice in writing of the withdrawal of such proposal. Payment for and delivery of said bonds shall be made at the office of Jeffries Banknote Company, 117 Winston Street, Los Angeles, California. For further information respecting the terms and conditions of the bonds, covenants for the protection md security of the bondholders, and provisions for redemption, bidders are referred to the copy of the resolution of issuance adopted by the Board of Directors on January 8, 1954, which is appended to the proposed Official Statement as Appendix A. Copies of the proposed Official Statement may be obtained without charge from the office of the Secretary of the Las Vegas Valley Water District, at 900 South Fifth street, Las Vegas, Nevada. The District will furnish the successful bidder at the expense of the District 1500 copies of the Official statement in final form. Any additional number of copies requested by the successful bidder will be furnished at the expense of the bidder. THIS NOTICE IS GIVEN pursuant to resolution of the Board of Directors of said District adopted on the 2nd day of April, 1954. THOMAS A. CAMPBELL President of the Las Vegas Valley Water District and the Board of Directors thereof. __HARRY E. MILLER_ Secretary of the Las Vegas Valley Water District and the Board of Directors thereof.