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Res 1360-61 A RESOLUTION authorizing the issuance of $500;O00--~at~r and Sewer Revenue Bonds of the City of Delray Beach for the purpose of making improvements and extensions to the sanitary sewer system of said city, providing for the sale of said bonds, providing for the security and payment thereof and making certain provisions in that connection. *** *** *~* *** WHEREAS the City Council of the City of Delray Beach has determined it necessary and essential to the health and well being of the inhabitants of said city to make improvements and extensions to the sanitary sewer system of said city and to finance the cost thereof through the issuance of revenue bonds under Chapter 1~4 of the Florida Statutes as more specifically hereinafter provided; and ~EREAS in order to secure the payment of such bonds the city desires to pledge to the payment thereof certain reve- nues to be derived from the operation of the waterworks plant and system of said city and the sanitary sewer system of said city, in accordance with Section 184.14 of the Florida Statutes, subject to all prior pledges of such water revenues; and ~EREAS the revenues to be derived by said c~y from the operation of its waterworks plant and system have been pledged to the payment of certain Water Revenue Certificates, Series 1957, originally issued in the amount of $1,378,000 and now outstanding in the amount of $1,305,000, pursuant to ordinance adopted on July 5, 1957, by this City Council; and WHEREAS under the provisions of Section 12 of said ordinance of July 5, 1957, the City of Delray Beach may issue obligations on a parity with said Water Revenue Certificates, Series 1957, if certain conditions prescribed in said section are satisfied; and -2- WHEREAS the average annual net revenues of said water-~ works plant and system as defined in said ordinance for the last two fiscal years have been equal to $237,525.37, which is more than one and one-half times $132,31~.00, the highest combined interest and principal requirement for any succeeding fiscal year of all certificates authorized by said ordinance now outstanding and of the obligations herein authorized; the payments required by said ordinance to be made into the City of Delray Beach Water Revenue Certificates, Series 1957, Interest and Sinking Fund created by said ordinance are current; the bonds herein authorized are payable as to principal on June i of each year in which prdn~4 cipal falls due and are payable as to interest on June i and December i of each year; the proceeds of the obligations herein authorized shall be used solely for the making of improvements and extensions to the city's sanitary sewer collection, treatment and disposal system; and therefore all conditions for the issuance of such parity obligations are satisfied; NOW, THEREFORE, Be It Resolved by the City Council of the City of Belray Beach, Palm Beach County, Florida: Sec~0n ~. That it is hereby found and declared a~ follows: (a) That the estimated cost of the sewer improvement~ to be made with the proceeds of the bonds herein authorized, in- cluding all proper incidental, engineering, legal and fiscal costs,is $500,000; (b) That ~he estimated annual revenues of the sewer system (as hereinafter defined) is $41,OO0.O0 and ~he estimated annual water revenues to become available for the payment of the bonds herein authorized is $245,000.00; -3- (c) The estimated annual cost of maintaining, repair- ing and operating said sewer system is $20,000.00; and (d) That on the basis of such estimates the annual revenues of said sewer system, with the water revenues pledged to the payment of principal of and interest on the bonds herein authorized, will be sufficient to pay such cost of maintenance, repair and operation and the interest on such bonds and the principal thereof as such interest and principal shall become due. Section 2. That as used herein the following terms shall have the following meanings unless the context otherwise clearly indicates: (a) "City" means the City of Delray Beach. (b) "Bonds" means t~ $500,000 Water and Sewer Revenue Bonds herein authorized. (c) "Water Revenue Certificates" means the Water Revenue Certificates, Series 1957, of the City of Delray Beach, dated June l, 1957, originally issued in the amount of $1,378,000 and now outstanding in the amount of $1,305,O00. (d) "Water Revenue Certificate Ordinance" means the ordinance adopted by this City Council on July 5, 1957, authoriz- ing the Water Revenue Certificates. (e) "Water Revenue Bond Fund" or "Bond Fund" means the "Bond Fund" or "City of Delray Beach Water Revenue Certifi- cates, Series 1957, Interest and Sinking Fund" created by the Water Revenue Certificate Ordinance. (f) "Water system" means the complete waterworks plant and system of the city as it now exists and may hereafter be improved and extended, consisting of all real and personal property of every nature owned by the city and used or useful in the opera- tion thereof whether within or without the boundaries of the city. -4- (g) "Sewer system'~ means the complete sanitary ~wer collection, treatment and disposal system of the city as it now exists and may hereafter be improved and extended, consisting of all real and personal property of every nature owned by the city and used or useful in the operation thereof whether within or without the boundaries of the city. Section 3. That for the purpose of obtaining funds to make necessary improvements and extensions to the sewer system, including the payment of proper incidental, engineering, legal and fiscal costs, there shall be borrowed upon the credit of the inco~.e and revenues hereinafter pledged the sum of $500,000, and that in evidence of the sum to be so borrowed there be issued $500,000 Water and Sewer Revenue Bonds of the city. Said bonds shall be designated "Water and Sewer Revenue Bonds", shall be in the total aggregate principal amount of $500,000, shall be dated December l, 1961, shall be in the denomi- nation of $1,000 each, shall be numbered from i to 500, inclusive, and shall bear interest from date until paid at such rate or rates not in excess of six per cent (6%) per annum as may be determined by resolution to be adopted by the City Council at or subsequent to the sale of the bonds, which interest shall be payable June l, 1962 and semi-annually thereafter on the first days of June and December of each year. The bonds shall be payable as to both principal and interest in lawful money of the United States of America at the Chase Manhattan Bank in the City of New York, New York, and shall mature serially in numerical order on June 1 of each of the years as follows: -5- BOND NUMBERS AMOUNT ~E,AR 1 to 10 $10,000 1968 11 to 20 10,000 1969 21 to 30 10,000 1970 31 to &O 10,000 1971 41 to 50 lO,O00 1972 51 to 65 15,000 1973 66 to 80 15,O00 1974 81 to 95 15,000 1975 96 to llO 15,000 1976 lll to 125 15,000 1977 126 to 140 15,000 1978 141 to 155 15,000 1979 156 to 170 15,O00 1980 ltl to 190 20,000 1981 191 to 210 20,000 1982 211 to 230 20,000 1983 231 to 250 20,000 1984 251 to 270 20,000 1985 271 to 290 20,000 1986 291 to 315 25,000 1987 316 to 340 25,000 1988 341 to 365 25,000 1989 366 to 390 25,000 1990 391 to 420 30,000 1991 421 to 450 30,000 1992 451 to 500 50,000 1993 Bonds numbered 41 to 500, inclusive, shall be callable for redemption in inverse numerical order on June l, 1971, and on any interest payment date thereafter at the principal amount thereof plus accrued interest to the date fixed for redemption and a premium of $40.00 for each bond so redeemed on or prior to June l~ 1975, $30.00 for each bond so redeemed thereafter on or prior to June l, 1980, $20.00 for each bond so redeemed thereafter on or prior to June l, 1985, $10.00 for each bond so redeemed thereafter on or prior to June l, 1990, and thereafter without premium. Notice of redemption shall be given not less than thirty days prior to the date fixed for redemption by the filing of an appropriate notice with the above named paying agent bank and the publication of an appropriate notice one time in a financial newspaper or journal published in the City of New York, New York. -6- Section ~. That said bonds shall be signed by the ~ayor of the city, shall be attested by the Clerk by his facsimile signature and shall be endorsed by the City Attorney by his £a¢-~ simile signature and shall have impressed thereon the official seal of the City of Delray Beach. Interest accruing on said b~n6~ on and prior to maturity shall be evidenced by coupons to be thereto attached, which coupons shall be signed by said Mayor and Clerk by their facsimile signatures and said officials by execution of said bonds shall adopt as and for their own prope~~ signatures their respective facsimile signatures on ~id Section 5. That the bonds herein authorized ~al~. not be payable from or charged upon any funds of the City of Delr~y Beach, other than the revenues to be derived from the operation of the water system and sewer system as hereinafte~ provided, nor shall the City of Delray Beach ever be subject any pecuniary liability thereon. No holder or holders of ~ny of the bonds shall ever have the right ~o compel any exercise the taxing power of the City of Delray Beach to pay any of the bonds or interest ~hereon or to enforce payment thereof a~ain?c any property of the city and such bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon a~y property of the city, other than the revenues received from bne operation of said systems. Section 6. That the bonds and the coupons to be thereto attached shall be in substantially the following form: -7- (Form of Bond) UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF PALM BEACH CITY OF DELRAY BEACH WATER AND SEWER REVENUE BOND Number $1, O00 KNOW ALL MEN BY THESE PRESENTS that the City of Delray Beach, a duly organized and existing municipal corporation in Palm Beach County, Florida, for value received, hereby promises to pay to bearer, in the manner and from the funds hereinafter provided, the sum of One Thousand Dollars ($1,O00) on the first day of June, 19 .... , and to pay interest on said sum from the date hereof until pa)~ent of principal at the rate of _ .per cent _l %) per annum, payable June 1, 1962 and semi-annually thereafter on the first days of June and December of each year, such interest to maturity being payable only upon presenta- tion and surrender of the annexed interest coupons as the same severally become due. Both principal of and interest on this bond are payable in lawful money of the United States of America at .... , in the city This bond is one of an issue in the amount of $500,000, all of like date,tenor and effect, except as to (interest rate), maturity and option of redemption, issued by the City of Delray Beach, under the provisions of Chapter 184 of the Florida Statutes, for the purpose of paying the cost of improving and extending the sanitary sewer system of said city. Said bonds are payable solely from and, -8- together with certain Water Revenue Certificates, Series 1957, of said city and such obligations as may hereafter be issued on a parity therewith by pledge of the net revenues to be derived from the operation of the waterworks plant and system and sewer system of said city. The City of Delray Beach is not obligated to pay said bonds or the interest thereon except from such revenues and the faith and credit of said city are not pledged to the payment of the principal of or interest on said bonds. The issuance of said bonds shall not directly or indirectly or contingently obligate said city to levy any ad valorem taxes whatever therefor or to make any appropriations for their payment except from the aforesaid revenues. This bond does not constitute an indebtedness of the City of Delray Beach within the meaning of any constitutional or statutory limitation of indebted- ness and shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of said city. Bonds numbered ~l to 500, inclusive, of the issue of which this is one are callable for redemption in inverse numerical order on June l, 1971, and on any interest payment date thereafter at the principal amount thereof plus accrued interest to the date fixed for redemption and a premium of $40.00 for each bond so redeemed on or prior to June l, 1975, $30.00 for each bond so redeemed thereafter on or prior to June l, 19SO, $20.00 for each bond so redeemed thereafter on or prior to June l, 19~5, $10.00 for each bond so redeemed thereafter on or prior to June l, 1990, and thereafter without premium. Notice of redemption is to be given not less than thirty days prior to the date fixed for redemption by the filing of an appropriate notice with the above named paying agent bank and the publication of an appropriate -9- notice one time in a financial newspaper or journal published in the City of New York, New York. The City of Delray Beach has covenanted and hereby covenants and agrees at all times while this bond, or any bond of the issue of which it is a part, is outstanding and unpaid to fix and maintain such rates for water and services furnished by said plant and systems as will be fully sufficient to provide for the payment of the interest on and principal of all of said bonds as interest and principal become due, to create a proper fund therefor, to provide for the payment of the expenses of administer- ing and operating said plant and systems and for maintaining ~ai~ plant and systems in good repair and working order. For a more particular statement of the covenants and provisions securing the bonds, reference is made to the ordinance and resolution adopted by the Council of the City of Delray Beach on July 5, 1957 and .~, 1961, respectively, authorizing said Water Revenue Certificates and the bonds of this issue. It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this bond have existed, have happened and have been performed in due time, form and manner as required by law. The bonds of the issue of which this is one are declared by law to have all the qualities and incidents of negotiable instruments under the Negotiable Instru-. ments Laws of the State of Florida. This bond is one of an issue of bonds which were validated and confirmed by decree of the Circuit Court of the Fifteenth Judicial Circuit of Florida, in and for Palm Beach County rendered on , 1961. -10- IN '~ITNESS ¥~EREO~F, the City of Delray Beach, Florida, acting through its City Council has caused this bond to be signed by its Mayor, attested by its Clerk by his facsimile signature, and approved by its City Attorney by his facsimile signature, under the official seal of said city, and has caused the interest coupons hereto attached to be executed by the facsimile signatures of said Mayor and Clerk, all as of this first day of December, 1961o Mayor, City o~ Delray Beach Attest: Clerk, City of belray Beach Approved as to form, language and execution. City Attorney (Form of Coupon) Number $ On the first day of .,19~ , unless the hereinafter mentioned bond is then optional for redemp- tion and has been theretofore duly called for redemption and provision for the redemption thereof duly made, the City of Delray Beach, Florida, will pay to bearer the sum of Dollars ($ ) in the manner and out of the funds described in the bond to which this coupon is attached, in lawful money of the United States of America at in the City of , , being the interest then due on its Water and Sewer Revenue Bond, dated December 1, 1961, and numbered . Mayor Attest: Clerk -11- Section 7. That the water system shall continue to be operated in the manner required by the Water Revenue Certificate Ordinance until the retirement of all of the bonds herein author- ized. To the extent hereinafter specified, the revenues to be derived from the operation of the water system and the sewer system are hereby pledged to the payment of operation and main- tenance expenses, principal of and interest on the Water Revenue Certificates and the bonds herein authorized and the establishment and maintenance of the reserves hereinafter mentioned. The bonds herein authorized being issued on a parity with the Water Revenue Certificates in accordance with the provi- sions therefor in the Water Revenue Certificate Ordinance, the holder of each of said bonds shall have all rights granted by the Water Revenue Certificate Ordinance to the holders of the Water Revenue Certificates and all provisions in said ordinance for the benefit of said certificate holders are hereby incorporated by reference and shall inure to the benefit of the holders of the bonds herein authorized. From and after the delivery of any bond pursuant to the provisions of this resolution, the sewer system shall be operated on the basis of a fiscal year commencing on October 1 of each year and ending on the last day of September of the next succeeding year, and on that basis all income and revenues of every nature derived from the operation of said system shall be set aside into a separate and special fund, which fund is herein- after sometimes referred to as the "Sewer Revenue Fund". There shall first be paid from the moneys in the Sewer Revenue Fund from time to time as needed the reasonable and necessary expenses of operating and maintaining the sewer system, including the cost of necessary repairs. Said expenses are hereby -12- defined as thos~ expenses reasonably incurred in the normal operation of the system and do not include the cost of additions, extensions or other capital improvements. From the money in the Sewer Revenue Fund not expen~ed for the reasonable and necessary cost of operating and maint~ini~g the sewer system as above provided, there shall be paid into the Bond Fund created by the Water Revenue CertiI'icate Ordinance such amount of ~he remaining gross revenues in each fiscal year ~ will, together with revenues of the water system available fur such purpose, be fully sufficient to pay all principal of and interest on obligations payable from said fund falling due in such fiscal year and to accumulate and maintain t~e reserve ther?~. in as hereinafter required. The bonds herein authorized shall b~ payable from said Bond Fund as to principal and interest on a parity with said Water Revenue Certificates, and there shall b~ paid into the Bond Fund all accrued interest received from the purchaser upon delivery of the bonds. The payments herein required to be made into the Bond Fund from the Sewer Revenue Fund shall be made monthly in such amounts as will (with money available for the purpose from the revenues of bhe water system) assure the existence of money I~lly sufficient and available to pay principal and interest as they fall due and to accumulate and maintai~ the reserve therein as hereinafter required. All payments into the Bond Fund shall be made monthly as herein provided by the Treasurer to the ~ank holding sa~.d fund, and shall be held by said bank as a trust account solely for the purpose of paying principal of and interest and redemption premiums on the Water Revenue Certif~cabe~, the bonds herein authorized and such obligations as may in the future be issued on ~ parity therewith as herei~a~ter provided~ Said trust fund shall be continually secured to the fullest extent permitted or required by the banking laws of the Sta~e of Floridc for the securing of public funds, and shall be irrevocable a~d not withdrawable by anyone for any purpose other than for the paym~n~ of principal of and interest and redemption premiums on obliga- tions payable therefrom. It shall be the duty of said bank on May 15 and November 15 of each year to transmit from the money in said fund to the paying agent bank such amount as may be needed for the payment of interest, or principal and interest, falling d~e on the next succeeding June I or December l, as the case may beo From the money in the Water Revenue Fund and the Sew~.~' Revenue Fund not expended for the cost of operating and maintaiui~g the systems in each fiscal year and not paid into the Bond ~'und such fiscal year as above provided, there shall be paid in e~ch fiscal year into the Renewal and Replacement Fund created by the Water Revenue Certificate Ordinance, as necessary to accumulate maintain s~id fund in the amount of $50,000.00, a sum equivalen~ to five per cent of the gross revenues derived from the operstlo~ of both systems in the preceding fiscal year. Money in said fund shall be used to pay the cost of making renewals, extensions, replacements or improvements to the water system and, to the exter~t not in conflict with the rights of the holders of the Water Revenue Certificates, to the sewer system when the making thereof has be~r recommended by the engineer who is at the time serving as ~he consulting engineer for said systems. Money in said fund shall also be used for the purpose of paying principal or interest, or both, payable from the Bond Fund falling due in any year for payment of which there is not money in the Bond Fund, including the reserve therein, and as to which there would otherwise be default. The money in the Renewal and Replacement Fund may, in -14- the discretion of the Council, be invested in direct obligations of the United States of America maturing not later than five years from date of purchase, in which event the obligations so acquired shall be held to the credit of said fund. In the event money so invested is needed for the purposes for which the fund is herein created such investment shall be liquidated to the extent necessary. When the amount in the Bond Fund, including the reserv~, and in the Renewal and Replacement Fund shall in the aggregate be equal to the amount of all principal and interest to maturity or all principal and interest to the next redemption date plus re- demption premiums then applicable on all obligations payable from the Bond Fund which remain outstanding, further payments into said funds may be discontinued, and the money in said funds shall be used for retirement or redemption of such outstanding obligations. All payments into the Sewer Revenue Fund shall be made to the Delray Beach National Bank of Delray Beach, Florida, or such other bank or banks as may be designated from time to time by the Council of the City of Delray Beach, provided that any such bank be a member of the Federal Deposit Insurance Corporation and that all such funds so deposited be secured as required for muni- cipal funds under the laws of the State of Florida. Such funds shall be held by the said bank or banks in separate accounts to be paid out only for the purposes and under the circumstances herein provided. Nothing in this section shall be so construed as to prevent the making of reimbursement to a subdivider from the revenues received from the customers in any subdivision, before any remaining revenues received from such customers are paid into the Sewer Revenue Fund herein created pursuant to any agreement between the city and any such subdivider executed prior to the delivery of the bonds. -15- In addition to %he amol~ts reQ~i~od ~o bo paid into the reserve portion of the B,>na Pu,~d u~de~ the Water Revenue Certificate Ordinance, there mhall be paid into said reserve such amount in each fiscal year as will cause the reserve to be built up, in a period of sixty months following the issuance of the bonds, to an amount equal to the largest amount of principal and interest which will be payable from the Bond Fund in any future twelve months' period, including the bonds herein authorized. The reserve comprising such surplus shall be maintained for the purpose of paying principal and interest payable from the Bond Fund falling due in any year as to which there would otherwise be default. If at any time it is necessary to use moneys in said reserve for the payment of interest or principal, the moneys so used shall be replaced from the first revenue thereafter received from the operation of either system not required to be used for maintenance and operation expenses and for the payment of current principal and interest, it being the intention hereof that there shall be maintained in the Bond Fund, in addition to the amount required for payments during the current fiscal year, an amount sufficient to pay the largest amount of principal and interest payable from the Bond Fund in any future twelve months' period as aforesaid. The money in the reserve may, in the discretion of the Council, be invested in direct obligations of the United States of America, maturing not later than five years from date of purchase, in which event the obligations so acquired shall be held to the credit of the Bond Fund, and in the event the money in the reserve which has been so invested shall be needed for the payment of principal or interest, the bank holding the Bond Fund shall, without specific instructions from the city, liquidate as many of the obligations so held as may be necessary and have the proceeds of such liquidation applied to the pa~vment of principal and interest. -16- After all payments above required have been made in each fiscal year, and any deficiencies which may exist from prior years have been remedied, the money remaining in the Sewer Revenue Fund shall be regarded as surplus and may be used for any lawful corporate purpose, including the retirement or redemption prior to maturity of any certificates or bonds payable from the BOnd Fund or as security pledged for any other obligations which the city may hereafter issue for any purpose. Section S. That so long as any of the bonds herein authorized remains outstanding, the city will maintain and carry, for the benefit of the holders of the bonds insurance on the physical properties of the water system and the sewer system of the kinds and in the amounts normally carried by private companies engaged in the operation of similar properties. The city will also carry adequate public liability insurance. All moneys received for losses under any such insurance policies, except public liability policies, are hereby pledged by the City of Belray Beach as security for the obligations payable from the revenues of the damaged property until and unless such proceeds are paid out in making good the loss or damage in respect of which such proceeds are received, either by repairing the property damaged or replacing the property destroyed, and adequate provision for making good such loss and damage made within ninety days from the date of the loss. The payment of premiums for all insurance policies required under the provisions of this section shall be considered to be maintenance and operation expenses. S,~ti~n ~. That the city covenants and agrees that so long as any of the bonds remains outstanding proper books of record and account will be kept by the city, separate and apart -17- from all other records and accounts, showing complete and correct entries of all transactions relating to the water system and the sewer system, and that the holders of any of the bonds, or any duly authorized agent or agents of such holders, shall have the right at all reasonable times to inspect all records, accounts and data relating thereto and to inspect the system and all properties comprising the systems. The city further agrees that it will within sixty days following the close of each fiscal year cause an audit of such books and accounts to be made by an independent firm of certified public accountants, showing the receipts and disbursements for account of each system, and that such audit will be available for inspection by the holder of any of the bonds. Each such audit in addition to whatever matters may be thought proper by the accountant to be included therein, shall include the following: 1. A statement in detail of the income and expenditures of each system for such fiscal year. 2. A balance sheet as of the end of such fiscal year. 3o The accountant's comment regarding the manner in which and extent to which the city has carried out the requirements of this resolution and the Water Revenue Certificate Ordinance and the accountant's recommendation for any change or improvement in the operation of either system. ~. A list of the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the expiration date of the policy. 5. The number of metered water customers, the number of unmetered water customers, if any, the number of hydrants connected to the water system, and the number of applications for water service on hand existing at the end of the year. 6. The number of gallons of water shown to have passed through the master meter of the city during such fiscal year, the number of gallons of water billed, the estimated number of gallons of water used for flushing mains and for extinguishing fires, and the number of gallons of water unaccounted for. 7. The number of properties connected to the sewer sys- tem at the end of the fiscal year and the number of properties to which sewer service is available and which are not connected to said system at the end of the fiscal year. 8. The number of applications for sewer service on hand at the end of the year and the number of applications for such service received during such fiscal year. 9. A statement showing the balances existing at the beginning and end of the fiscal year in the Bond Fund, including the reserve therein, together with all deposits and withdrawals made during said fiscal year and the monthly deposit requirements for each such fund during the next succeeding fiscal year. lO. The total billings for such fiscal year and the average monthly billing per customer. ll. All schedules of rates and charges imposed for water and sewer service during the fiscal year. The city agrees to furnish a copy of each such audit to the holder of any of the bonds at his request after the close of each fiscal year, and that any such holder shall have the right to discuss with the accountant making the audit the contents of t~ audit and to ask for such additional information as he may reasonabl~ require. The city further agrees that it will furnish the original purchaser of the bonds and any holder, upon request, monthly -19- operating reports of both systems in reasonable detail, and that it will mail each such report to the last known address of such purchaser or holder not later than fifteen days after the close of the month covered thereby. Sect~.p.~ 1~0. That the City of Delray Beach covenants and agrees with the holder or holders of any of said bonds that it will faithfully and punctually perform all duties with respect to each system required by the laws of the State of Florida, and that it will fix and collect sufficient rates and charges for water and sewer services furnished by the systems and will segregate and apply the income derived therefrom in the manner provided by this resolution so that said revenues will at all times be fully sufficient to operate and maintain the systems and to pay principal of and interest on said bonds promptly as each falls due. The City of Delray Beach further irrevocably covenants, binds and obligates itself not to sell, lease, encumber or dispose of either system or any substantial part thereof until all of the bonds herein authorized have been paid in full as to both principal and interest, and further covenants and agrees with the holders of said bonds to maintain said systems in good condition and to maintain a continuous and sufficient supply of water for distribution by the water system and to charge and collect such rates and charges fo~ water and sewer service rendered thereby to all consumers and users, including the City of Delray Beach so that the revenues derived therefrom will be sufficient at all times to carzy out fully the provisions of this resolution. The city further covenants and agrees that every officer, agent or employee of the city having custody or control of any of the moneys derived from the operation of either system -20- shall be bonded by a responsible corporate surety in an amount not less than the greatest amount reasonably anticipated to be within the custody or control of such officer, agent or employee at one time. The premiums on such surety bonds shall be paid by the city as reasonable and necessary expense of operation. That the city agrees to submit unit bills for water and sewer service to each person or firm liable for the payment of water and sewer charges and not to accept payment for one type of service only. If any water user shall become delinquent for more than sixty days in the payment of water and sewer charges, or both, the city will promptly shut off the supply of water to such user and will not resume such supply until all delinquent charges and penalties, including a reconnection charge of not less than $1.50, have been paid. A user shall be deemed delinquent if he has not paid the full amount of any bill within thirty days after it shall have been mailed to him. Section ll. That the bonds herein authorized shall enjoy complete parity of lien on the revenues of each system despite the fact that any of said bonds may be delivered at an earlier date than any other of said bonds. The City of Delray Beach expressly covenants and agrees that it will issue no other bonds or obligations of any kind or nature payable from or enjoying a lien on the revenues of either system prior to or on a parity with the bonds herein authorized. The provisions of the above paragraph are subject to the exception that if prior to the payment of the bonds herein authorized, it shall be found desirable to refund any obligation payable from the Bond Fund, said obligations or any part thereof may be refunded with the consent of the holders thereof (except that as to matured obligations or obligations which have been properly -21- called for redemption, such consent shall not be necessary) and the refunding obligations so issued shall enjoy complete equality of lien with the portion of the obligations which is not refunded, if any there be, and the refunding obligations shall continue to enjoy whatever priority of lien over subsequent issues may have been enjoyed by the obligations refunded, provided however, that if only a portion of the outstanding obligations payable from the Bond Fund is so refunded, no refunding obligation may bear interest at a rate higher or mature at a date earlier than the obligation refunded thereby .without the consent of the holders of the unrefunded portion of said obligations. The provisions of the second above paragraph are subject to the further exception that the city may issue additional obligations on a parity with the Water Revenue Certificates and the bonds herein authorized upon compliance with all terms and conditions set out for the issuance of such parity obligations in Section 12 of the Water Revenue Certificate Ordinance. Section 12o That so far as it legally may, the City of Delray Beach covenants and agrees for the protection and security of the bonds herein authorized: (a) That it will not grant a franchise to any competing water system or sewer system to operate in the City of Delray Beach until all bonds issued pursuant to the provisions of this resolution have been retired. (b) It is recognized that the City now has an agreement with Mellon Land Corporation covering the installation and operation of a sanitary sewer system only in those portions of Tropic Palms Subdivision identified on Plats Nos. 2 and 3, said subdivision lying within the boundaries of the City of Delray Beach, Florida, which Plats are on file in the public records of Palm Beach County, Florida. (c) That so long as any of the bonds herein authorized remains outstanding the city will maintain its corporate identity, · will make no attempt to cause its corporate existence to be abolished, -22- and will resist all attempts by other municipal corporations to annex all or any part of the territory now or hereafter in the city or served by either system. (d) That'the owner, tenant or occupant of each lot or parcel of land within the City of Delray Beach which abuts upon any street or other public way containing a sanitary sewer, which is served or which can be served by the sewer system and upon which lot or parcel a building shall have been constructed for residential, commercial or industrial use shall connect such building with such sanitary sewer and shall cease to use any other method for the disposal of sewage, sewage waste or other polluting matter. All such connections shall be made in accordance with rules and regula- tions which shall be adopted from time to time by the City Council, which rules and regulations may provide for a charge for making any such connection in such reasonable amount as the City Council may fix and establish. (e) That the City of Delray Beach hereby covenants a~.d agrees that whenever and to the extent that it may levy any tax on or measured by the purchase of water distributed or scld by the water system, the proceeds of such tax shall be considered part of the revenues of said system for the purposes of this resolution, and such proceeds are hereby made subject to the same pledge herein made as other revenues of said system. Section 13. That the initial schedule of ra~es, fees and other charges to be imposed for the services and facilities furnished by the sewer system, which initial schedule shall be effective immediately at the time when the system is constructed, certified for use by the consulting engineers and accepted by the city but which shall be subject to such revision from time to time hereafter as may be necessary to carry out the requirements of this resolution shall be as follows: -23- RESIDENTIAL ~NITS A monthly sanitary sewage service charge is hereby imposed upon each residential dwelling unit, as more specifically set forth below, to which sanitary sewage service is available through the facilities afforded by the municipally owned sewage system, according to the following schedule: Single family residential dwellings, for the first ~ fixtures or less contained therein, $2.50, for the next 8 fixtures contained therein, $.25 per fixture and for all fixtures contained therein over 12, $.15 per fixture. COMMERCIAL AND NON-RESIDENTIAL UNITS A monthly sanitary sewage service charge is hereby imposed upon each commercial and non-residential unit to which sanitary sewage service is available through the facilities afforded by the municipally owned sewage system, according to the following schedule: For the first 2 fixtures contained therein, $2.50, for the next 8 fixtures contained therein, $.50 per fixture and for all fix- tures contained therein over 10, $.25 per fixture. For the purpose of the foregoing schedule each plumbing fixture or drain that is connected to a sewer, including, but not limited to, a toilet, wash basin or lavatory, bath, floor drain, laundry tub, kitchen sink, slop basin or wash sink, washing~machine, equipment or device if so constructed as to discharge its water content into any of the foregoing or directly into a sewer, shall be regarded as a "fixture". Section 14. That the bonds herein authorized shall be sold in such manner and at such time or times as may hereafter be determined by resolution of the City Council. So much of the proceeds of sale as represents accrued interest shall at the time of the delivery of the bonds to the purchaser be paid into the Bond Fund. So much of the remainder of the proceeds of sale as is not required for the payment of incidental fiscal, legal and engineering expenses which are due and owing at the time of the~issuance of the bonds shall be deposited in a special trust account in a bank or banks in the City of Delray Beach, Florida. Said bank shall hold and dispose of said proceeds in accordance with the terms of a letter which shall be directed to said bank and executed by the Mayor and City Clerk of the City of Delray Beach and approved by the original purchaser of the bonds. Section 15. That the provisions of this resolution and the Water Revenue Certificate Ordinance shall constitute a contract between the City of Delray Beach and the holder or holders of the bonds herein authorized, and after the issuance of any of s~d bonds~ no change, variation or alteration of any kind in ~he provisions of said ordinance or this resolution shall be made until all of the bonds have been paid in full except as provided in Section 17 hereof~ Section 16. That in addition to all other rights enjo?d by the holders of the bonds herein authorized, such holders shall have the right by mandamus or other appropriate suit or action in any court of competent jurisdiction to enforce his or their rights against the City of Delray Beach, the governing body thereof, and any and all officers and agents thereof, including but without limitation, the right to require said city and its governing body to fix and collect rates and charges fully adequate to carry out all of the provisions and agreements in this resolution contained. -25- Section 17. That the holders of seventy-five per cent (75%) in principal amount of the bonds herein authorized at any time outstanding (not including in any case any bonds which may then be held or owned by or for the account of the city, but including such refunding bonds as may be issued for the purpose of refunding any of the bonds herein authorized if such refunding bonds are not owned by the city), shall have the right from time to time to consent to and approve the adoption by the city of resolutions or ordinances modi- fying or amending any of the terms or provisions contained in this resolution or the Water Revenue Certificate Ordinance in the manner and to the extent provided i~ Section 18 of the Water Revenue Certif-- icate Ordinance. This right, however, shall not be construed to authorize the amendment of the Water Revenue Certificate Ordinance without obtaining the consent of 75% in principal amount of the certificate holders while any of said Water Revenue Certificates is outstanding. Section 18. That John Ross Adams, as attorney for the City of Delray Beach, is hereby authorized and directed to take appropriate proceedings in the Circuit Court of the Fifteenth Judicial Circuit of Florida in and for Palm Beach County for the validation of said bonds, and the Mayor and City Clerk are hereby authorized to sign any pleadings in such proceedings for and on behalf of the City Council of the City of Delray Beach. Section 19. That if any section, paragraph, clause or provision of this resolution shall be held to be invalid for any reason, such invalidity shall not affect the validity or enforce- ability of any of the remaining provisions hereof. Section 20. That all resolutions or orders or parts thereof in conflict herewith are to the extent of such conflict hereby repealed. Adopted and approved November 6, 1961. /s/. V. WARREN Mayor Attest :~~~~ ~~,. C~ty Cle~2~ -26- The foregoing resolution and the forms of revenue bond and interest coupon therein contained are hereby approved by me as to form, language and execution this 6th day of November, 1961. /S/ , ,JOHN ROSS AD..~4S City Attorney (Other business not pertinent to the above appears in the minutes of the meeting.) Pursuant to motion duly made and carried the council. adjourned, /S/ GEORGE V. W~RREN Mayor Attest: /S/ R.D. ~',ORTHIIfiG -27- STATE OF FLORIDA COUNTY OF ?ALM BEACH I, R. D. WORTHING, do hereby certify that I am the duly qualified and acting City Clerk of the City of Delray Beach, Palm Beach County, Florida. I further certify that the above and foregoing constitutes a true and correct copy of the minutes of a meeting of the City Council of said city held on November 6, 1961~ and of a resolution adopted at said meeting, as said minutes and resolution are officially of record in my possession. IN WITNESS WHEREOF, I have hereunto subscribed my official signature and impressed hereon the official seal of the City of Delray Beach this 6th day of November, 19~!. (SEAL)