10-02-57SpMtg OCTOBER 2ND, 1957.
A Special Meeting of the City Council of Delray Beach, Florida,
was held in the Council Chambers in the City Hall, at 4:00 o'clock'
P.M., with Mayor George V. Warren in the Chair, City Manager W, E.
Lawson Jr., City Attorney Harry T. Newett and the following Commis-
sioners being present -Mr. R. J. Holland, Mrs. Martha K. Holland
and Mrs. Catherine E. Strong.
City Attorney Newett read the followinE prepared letter and a~
greements concerning disposition of proceeds from the sale of Water
Revenue Certificates - Series 1957, of the City of Delray Beach,
Flo rids:
TO Chase Manhattan Bank
RE: $1,378,000 W. ater Revenue Certificates, Series 1957,
City of Delray Beach, Palm Beach County, Florida.
On July 5, 1957, the City Council of Delray Beach, Fla., enacted an
ordinance, a copy of which is enclosed, authorizing issuance of
$1,378,000 Water Revenue Certificates, Series 1957, and providing for
redemption of outstanding revenue certificates.
On August 12, 1957, the Council gave its order calling for the
redemption of such outstanding revenue certificates, a certified
copy of which notice was forwarded you September 24, 1957, and re-
ceivel by~ you~September 27, 1957. ~
The $1,37~,000 Water Revenue Certificates, Series 1957, were
sold September 24, 1957 to Ira Haupt & Co., and associates, and de-
livery is expected to take place on October 10, 1957 in New York City
spon. payme~nt~by Ira Haupt & Company of the principal amount of
1,343,715.36 plus accrued interest from June 1 to date of delivery,
which sum shall be received by you for the following:
The total amount of accrued interest received from Ira Haupt &
Company shall he.transferred into the Bond Fu~d (in accordance
with paragra~ph thre.e (3) of section seven (7) of Ordinance en-
acted July 5, 1957e)
2. $384,~00 of the proceeds of the sale of the 1957 certificates
plus $16,735,00 from the City of Delray Beach will be held ir-
revocably in trust for and used solely for the payment of prin-
cipal, interest and redemption premiums due December 1, 1957 on
the Series 1946 and Series 1952 certificates to be refunded (in
accordance with Section 15 of the Ordinance enacted July 5, 1957.)
3. From the balance, you will pay to B. J. Van Ingen & Co., Inc. and
McCreedy & Company, Inc. the sum of $18,225.00 for fiscal ser-
vices, and to Harry T. Newett the sum of $9,500.00 for legal ser-
vices. No engineering expenses are due at this time.
4. The balance of the bond proceeds shall be transferred to the
credit of First National Bank of Delray Beach and to the credit
of Delray Beach National Bank, in a special trust account to be
administered in accordance with letter of instructions from the
City of- Detray Beach to said First National Bank of Delray Beach
and the Delray Beach National Bank.
CITY OF DELRAY BEACH
AGREEMENT to the Delray Beach National Bank and to the First
National Bank of Delray Beach:
Gentlemen: ~
The City of Delray Bea~ch will shortly cause to be transferred to you
the sum of $465,995.16 taken from the proceeds of the sale of
$1,378,000 Wrater .Revenue Certificates, Series 1957, of the city. You
are instructed to place said amount when received in a special trust
account to~ be held for the Joint benefit of the city and the holders
from time to time of the above described certificates and to be paid
out as herein provided.
OCTOBER 2nd, 19~7
The money in such account is to be paid out pursuant to ~checks,
vouchers or warrants signed by the City Treasurer and countersigned
by the City Manager of the City of Delray Beach, but only when each
such check is accompanied by a certificate signed by a duly accredited
representative of Smith and Gillespie of Jacksonville, Florida, as
supervising engineers, each which certificate is to approve the pay-
ment of the sum represented by such check as properly payable to the
payee thereof for services rendered or materials or property supplied
in connection with the acquisition of waterworks improvements pur-
suant to plans and specifications heretofore prepared by said engi-
neers.
After the expenditures incurred in connection with the Facilities
for which the certificates were authorized have been completed and
payment therefor made in full, the above specified engineers will
file with you a certificate so stating and thereupon you are to trans~-
fer to the First National Bank of Delray Beach for deposit in the
City of Delray Beach Water Revenue Certificates, Series 1957, Inter-
est and Sinking Fund, all money remaining on deposit in said special
truSt account.
If any change is made in the identity of the supervising engi-
neers during the construction of the facilities you will be so noti-
fied by the Mayor and City Clerk of the city, and when you have re-
ceived from Ira Haupt & Co., of New York, New York, the purchasers
of the certificates, an approval in writing of the new ~engi. nee~ or
engineers so specified by the Mayor and City Clerk, you may th~ere-
after accept the approving certificates of such new engineer or en-
gineers in lieu of the certificates of the engineers above named
for all purposes of this letter.
You are to recognize that the original purchasers of the 'certi-
ficates have an enforceable interest in the deposit for which pro-
vision is hereinmade and that, therefore, these instructions are
to be irrevocable unless change, therein is authorized by such pur-
chasers.
Your endorsement of this letter will constitute the letter an
effective agreement between you and the city.
CITY OF DELRAY BEACH
Bank acknowledges receipt of the
above' ins~ltio~'L an~ 'A'gr~S ~hat it will hold the funds hereafter
receivmd pursuant to such letter and will dispose of such funds in
accordance with such instructions~
WITNESS the signature of the President and the
Cashier of said bank, attested by"its corporate seal as of ~h~'~ ~at'e
appearing at .the head of the foregoing letter.
Bank
Attest:
SEAL
The above letter of instructions is hereby approved as of the
date appearing at the head of the foregoing letter.
IRA HAUPT & CO.
Commissioner ~trong moved that the City Attorney be authorized
to forward the above letter of instructions to The Chase Manhattan
Bank and to submit the agreements as drawn up and read to the Banks
referred to therein f~r execution. Motion seconded by Commissioner
M. K~ Holland.
Commissioner Strong moved to rescind the action of the Council
at meeting held on Tuesday, October 1, 1957, concerning remuneration
of the City Attorney for services rendered in connection with pre-
paration and validation of the Water Revenue Certificates Series 1957~
and to approve the Attorney's bill, in the amount of $9~500.00, for
said services. Motion seconded by Commissioner R. J. Holland and
MEETING ADJOURNED /~
APPROVED: