Loading...
Agenda Reg 12-03-02City of Delray Beach Regular Commission Meeting Tuesday. December 3, 2002 Regular Meeting 6:00 p.m. Public Hearings 7:00 p.m. Commission Chambers Delray Beach City HaH 100 NW lat Avenue Delray Beach, Florida 33444 Phone: (561) 243-7000 Fax: (561) 243-3774 RULE8 FOR PUBLIC PARTICIPATION 1. PUBLIC COMMENT: The public is encouraged to offer comments with the order of presentation being as follows: City Staff, public comments, Commission discussion and official action. City Commission meetings are business meetings and the right to limit discussion rests with the Commission. Generally, remarks by an individual will be limited to three minutes or less. The Mayor or presiding officer has discretion to adjust the amount of time allocated. A. Public Hearings: Any citizen is entitled to speak on items under this section. Comments and Inquiries on Non-Agenda Items from the Public: Any citizen is entitled to be heard concerning any matter within the scope of jurisdiction of the Commission under this section. The Commission may withhold comment or direct the City Manager to take action on requests or comments. Co Regular Agenda and First Reading Items: When extraordinary circumstances or reasons exist and at the discretion of the Commission, citizens may speak on any official agenda item under these sections. 2. 8IGN IN SHEET: Prior to the start of the Commission Meeting, individuals wishing to address public hearing or non-agendaed items should si~n in on the sheet located on the right side of the dais. If you are not able to do so prior to the start of the meeting, you may still address the Commission on an appropriate item. The primary purpose of the sign-in sheet is to assist staff with record keeping. Therefore, when you come up to the podium to speak, please complete the sign-in sheet if you have not already done so. 3. ADDRRSSING THE COMMISSION: At the appropriate time, please step up to the podium and state your name and address for the record. All comments must be addressed to the Commission as a body and not to individuals. Any person making impertinent or slanderous remarks or who becomes boisterous while addressing the Commission shall be barred by the presiding officer from speaking further, unless permission to continue or again address the Commission is granted by a majority vote of the Commission members present. APPELLATE PROCEDURES Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at this meeting, such person will need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is based. The City neither provides nor prepares such record. The City will furnish auxiliary aids and services to afford an individual with a disability an opportunity to paruclpate m and enjoy the benefits of a service, program, or activity conducted by the City. Contact Doug Randolph at 243- 7127, 24 hours prior to the event m order for the City to accommodate your request. Adapnve listening devices are available for meetings in the Commission Chambers. 2. 3. 4. 5. ° o o ROIJJ C~LL. INVOCATION. PLEDGE OF ?,LLEGIANCE TO THE FLAG. AGENDA APPROVAL. APPROVAL OF MINUTES: · November 19, 2002 - Regular Meeting PROCLAMATIONS: · NONE PRESENTATIONS: A. Site Plan Review and Appearance Board (SPRAB) Awards B. "All About Me" Contest Winners - Delray Beach Parks and Recreation Depa~oaient CONSENT AGENDA; City Manager Recommends Approval. A. C0 D0 FINAL SUBDMSION PLAT APPROVAL/DELRAY 403: Approve the subdivision plat for Delray 403, located on the northeast side of S.E. 1st Street and S.E. 4°~ Avenue. FINAL SUBDIVISION PLAT APPROVAL/MERIDIAN; Approve the subdivision plat for the Meridian, located on the east side of S.E. 6~' Avenue, between S.E. 3ra Street and S.E. 4~ Street. RESOLUTION NO. 84-02/ABANDONMENT OF WATER EASEMENT: Approve the abandonment of a 12' wide water easement lying within a portion of Lots 3 and 4, Blank-Nichols Subdivision along with the combined preliminary/final plat for a 1.973 acre development known as the Meridian, located on the east side of S.E. 6~ Avenue (Northbound Federal Highway), between S.E. 3~d Street and S.E. 4t~ Street. RESOLUTION NO. 9$-02/ABANDONMENT OF UTILITY EASEMENT: Approve the abandonment of a 6' wide utility easement within the Plat of Sabal Lakes Phase Three, located east of Barwick Road and north of the L-31 Canal off of Seagrape Circle. RESOLUTION NO. 96-02: Approve Resolution No. 96-02 assessing costs for the demolition of an unsafe structure located at 234 S.W. 10~ Avenue. -2- 12-03-2002 Fo H0 PURCHASE OF RECTRAC SOFTWARE: Approve the purchase of the RecTrac software in the amount of $46,625.00 for the Deb:ay Beach Parks and Recreation Department to synchronize payments and registration at all six (6) remote sites with a link to the AS400. Funding is available from 115-492S-572-64.90 (Special Projects Fund/After School Program/Other Machinery/Equipment). CHANGE ORDER NO. 1/FINAL PAYMENT/G.T.E. BUILDERS, INC.: Approve Change Order No. 1 in the amount of $10,887.20, and final payment in the amount of $18,017.01 to G.T.E. Builders, Inc. for the Community Teen Center (505) Project. Funding is available from 117-6111-519-63.40 (Recreation Impact Fee/Recreation Improvements), 334-6111-572-62.09 0Delray Youth Teen Council), and 442-5178-536-61.83 (Water/Sewer/Lift Station Rehabilitation). CHANGE ORDER NO. 1/FINAL PAYMENT/CORNERSTONE BUSINESSES. INC.: Approve Change Order No. 1 in the amount of a $21,000.00 decrease, and final payment in the amount of $33,651.00 to Cornerstone Businesses, Inc. for the Barrier Island 16" ICWW Force Main Crossing Project. Funding is available from 441-5161-536-69.23 (Water/Sewer Fund). HOUSING REHABILITATION GRANT\CONTRACT AWARD: Approve Housing Rehabilitation grant\contract award through Community Development Division in the amount of $21,000.00 to Preston Construction (329 S.W. 12~ Avenue). Funding is available from 118-1963-554-49.19 (SHIP Housing Rehabilitation Grant). SPECIAL EVENT REOUEST/HOWARD ^LAN 14TM ANNUAL DOWNTOWN ART FESTIVAL: Approve a special event request for the 14~ annual Downtown Art Festival sponsored by Howard Alan Events, Ltd. to be held on January 18 and 19, 2003, granting a temporary use permit per LDR Section 2.4.6(H) for street closure of Atlantic Avenue, east of N.E./S.E. 62 Avenue east to Salina, and Vittoro's parking lot for vendor parking; authorize staff to apply for the FDOT street closure permit; authorize staff support for security and traffic control, and permit an event sign to be erected on Atlantic Avenue just east of I-9S one week prior to the event with the sponsor paying all overtime costs; contingent on sponsor providing a certificate of liability insurance. REVIEW OF APPEALABLE LakND DEVELOPMENT BOARD ACTIONS: Accept the actions and decisions made by the Land Development Boards for the period November 18, 2002 through November 29, 2002. HUMAN RESOURCES MANAGEMENT PARTNERS, INC./SALARY STUDY: Approve the three percent (3%) base rate adjustment for general employees and other pay plan adjustments as recommended by Human Resources Management Partners, Inc. to be effective December 1, 2002. -3- 12-03-2002 L. AWARD OF BIDS AND CONTRACTS: Contract award to Insituform Technologies, Inc. in the amount of $528,972.00 for trenchless sanitary sewer rehabilitation of 9,112 feet of gravity sewer (System 17/Barrier Island). Funding is available from 442-5178-536-63.51 (Sewer Mains). Bid award to various vendors for the purchase of chemicals and fertilizers via Co-op Bid #2002-43 for a total amount of $183,000.00. Funding is available from 001-4131-572-52.26 (General Fund/Gardening Supplies), 445-4714-572- 52.26 (Delray Beach Municipal Golf Course Fund/Gardening Supplies), 446- 4714-572-52.26 (Lakeview Golf Course Fund/Gardening Supplies), and 001- 4511-539-52.26 (General Fund/Gardening Supplies). Lease award to Meats Motor Leasing in the amount of $28,000.00 for FY 2002 for the lease of five (5) police vehicles under the Florida Sheriff's Association and Florida Association of Counties, Bid #02-10-0826. Funding is available from 001-2115-521-44.40 (Rental and Lease Vehicles). REGULAR AGENDA: A. PUBLIC FINANCIAL MANAGEMENT, INC, PRESENTATION RESOLUTION NO. 90-02: Consider approval of Resolution No. 90-02 authorizing the negotiated sale of the City's Utility Tax Revenue Refunding Bonds, Series 2002, in the aggregate principal amount of not exceeding $16,500,000 for the purpose of paying and defeasing the City's Utilities Tax Revenue Refunding and Improvement Bonds, Series 1992; Utilities Tax Revenue Refunding and Improvement Bonds, Series 1994; Utilities Tax Revenue Bonds, Series 1995; Utilities Tax Revenue Bonds, Subordinate Seres 1996; and Utilities Tax Revenue Bonds, Subordinate Series 1998 (Collectively the "Refunded Bonds"). RESOLUTION NO. 91-02: Consider approval of Resolution No. 91-02 authorizing the issuance of not exceeding $18,000,000 in the initial aggregate principal amount of the City's General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program); providing for the form and terms of the bonds. RESOLUTION NO. 92-02: Consider approval of Resolution No. 92-02 authorizing the negotiated sale of the City's General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) in the initial aggregate principal amount of not exceeding $18,000,000. BONUS PAYMENT TO JCD SPORTS GROUP: Consider approval of FY 2002 bonus payment to JCD Sports Group for golf operations in the amount of $14,700 and for Tennis Center operations in the amount of $2,360. Funding is available from 445- 4711-572-34.90 (Delray Beach Municipal Golf Course Fund/Other Contractual Services), 446-4711-572-34.90 (Lakeview Golf Course/Other Contractual Services), and 001-4215-575-34.90 (General Fund/Other Contractual Services). -4- 12-03-2002 10. Fo G0 Ho J0 CONDITIONAL USE REQUEST/ALBATROSS CHILD CARE CENTER: Consider a request for conditional use approval to allow the establishment of a child care facility for Albatross Child Care Center, located at the southeast comer of Albatross Road and Curlew Road. (Ouasi-Ju&'cial Heating) PROPOSAL/VILI.&GE FOUNDATION: Consider approval of a proposal from the Village Foundation, Inc. for a partnership with the Delray Beach Parks and Recreation Depatmxent for teen programming at Pompey Park in the amount of $23,000.00. Funding is available from 115-4101-572-49.90 (Special Projects Fund). RESOLUTION NO. 94-02: Consider approval of Resolution No. 94-02 authorizing the acquisition of property by eminent domain for parking purposes. CLARIFICATION/APPEAL OF HISTORIC PRESERVATION BOARD/TREEHOUSE: Consider a request from the City Attorney for the purpose of clarification regarding the motion made on November 19, 2002. APPOINTMENTS TO THE PEDESTRIAN-BICYCLE TASK TEAM: Appoint seven (7) members to the Pedestrian-Bicycle Task Team. According to Resolution No. 88-02, each member of the City Commission will appoint members to the Pedestrian- Bicycle Task Team with the task team membership electing a Chairperson. Based on the rotation system, the appointments will be made by Commissioner Perlman (Seat #1), Commissioner Archer (Seat #2), Commissioner Levinson (Seat #3), Commissioner McCarthy (Seat $$4), and Mayor Schmidt (Seat #5). PUBLIC HEARINGS: A° ORDINANCE NO. 47-02 (ADOPTION HEARING FOR {~OMPREHEN$IVE PLAN AMENDMENT 2002-02): Consider on second reading an ordinance adopting Comprehensive Plan Amendment 2002-02 and associated Future Land Use Map (FLUM) amendment. Amendment 2002-02 includes: · Modification of the definitions' section of the Public Schools Facilities Element, by adding numerous new definitions. · Modification of Policy B-2.1 of the Future Land Use Element, regarding Concurrency, to add specific language with respect to Public School Concurrency Review. Modification of Policy A-2.4 of the Future Land Use Element, regarding the location of the automobile dealerships, to decrease the area which dealerships should be directed to, as a result of a rezoning which expanded the CBD (Central Business District). Modification of the Inventory and Analysis section of the Coastal Management Element to reflect the recent completion of the Beach Renourishment Project. Modification of the Introduction and Summary of Major Features (Planning Area subsection), Objective B-3 and Policies B-3.1 and B-3.2 of the Future Land Use Element, all regarding the provision of services to land within the planning area. 12-03-2002 11. 12. 13. Privately initiated Future Land Use Map amendment from LD (Low Density Residential, 0-5 du/ac) to CC (Commercial Core) for a 0.025 acre parcel of land located on the north side of S.E. 4'~ Street, approximately 127 feet east of S.E. 6~h Avenue (northbound Federal Highway) associated with the Meridian Mixed-Use Development. ORDINANCE NO. 52-02: An ordinance rezoning from R-l-AA (Single Family Residential) to CBD (Central Business District) for a 0.025 acre parcel of land located on the north side of S.E. 4~h Street, approximately 127 feet east of S.E. 6°~ Avenue (northbound Federal Highway) associated with the Meridian Mixed-Use Development. COMMENTS AND INQUIRIES ON NON-AGENDA ITEMS FROM THE PUBLIC- IMMEDIATELY FO!.I.OWING PUBLIC HEARINGS. A. City Manager's response to prior public comments and inquiries. B. From the Public. FIRST READINGS: ORDINANCE NO. 53-02: An ordinance modifying Ordinance No. 4-99 by amending Subsection 4.6.9(E), "Location of Parking Spaces" of the Land Development Regulations to extend the In-Lieu of Parking Fee regulations. If passed, a public hearing will be scheduled for January 7, 2003. ORDINANCE NO. 54-02: An ordinance revising Ordinance No. 51-02 to clarify that Lot 3 of Block 2 and Lot 3 of Block 3 of the Silver Terrace Subdivision are included in Ordinance No. 51-02. If passed, a public heating will be scheduled for January 7, 2003. ORDINANCE NO. 55-02: An ordinance amending Chapter 111, "Advertising" of the City Code of Ordinances by enacting a new Section 111.18, "Distributing Commercial and Non-Commercial Handbills in Public Places". If passed, a public hearing will be scheduled for January 7, 2003. COMMENTS AND INQUIRIES ON NON-AGENDA ITEMS. A. City Manager B. City Attorney C. City Commission POSTED: NOVEMBER 27, 2002 -6- 12-03-2002 NOVEMBER 19, 2002 A Regular Meeting of the City Commission of the City of Delray Beach, Florida, was called to order by Mayor David W. Schmidt in the Commission Chambers at City Hall at 6:00 p.m., Tuesday, November 19, 2002. 1.~. Roll call showed: Present - Commissioner Jon Levinson Commissioner Alberta McCarthy Commissioner Jeff Perlman Mayor David W. Schmidt Absent - Patricia Archer, City Commissioner David T. Harden, City Manager Also present were - Robert A. Barcinski, Assistant City Manager Susan A. Ruby, City Attorney Barbara Garito, City Clerk 2. The opening prayer was delivered by Father Brian Horgan with St. Vincent Ferrer Catholic Church. The Pledge of Allegiance to the flag of the United States of America was given. 0 AGENDA APPROVAL. Mayor Schmidt stated he has a request to pull Item 8.K., Service Authorization No.9/CH2M Hill~ Inc. from the Consent Agenda. Mayor Schmidt noted the addition of Item 7.E., Presentation for the City of Delray Beach Residents Academy Certificates to the Agenda by addendum. Mayor Schmidt stated there is also a request to postpone Item 9.E., Resolution No. 94-02 to a date certain of December 10, 2002. Mr. Perlman requested that Item 8.I., Request for Proposal (RFP)/Swinton Gardens be removed from the Consent Agenda and moved to the Regular Agenda as Item 9.A.A. Mr. Levinson moved to approve the Agenda as amended, seconded by Ms. McCarthy. Upon roll call the Commission voted as follows: Mr. Perlman - Yes; Mr. Levinson - Yes; Ms. McCarthy - Yes; Mayor Schmidt - Yes. Said motion passed with a 4 to 0 vote. 5_. APPROVAL OF MINUTES: Mayor Schmidt noted a correction to paragraph four on page 12 of the Minutes from the Regular City Commission Meeting of November 5, 2002. This should read Mayor Schmidt stated he does not support the idea of the CDD in any of the proposals. Mr. Perlman moved to approve the Minutes of the Regular Meeting of November 5, 2002 as amended, seconded by Ms. McCarthy. Upon roll call the Commission voted as follows: Mr. Levinson - Yes; Ms. McCarthy - Yes; Mayor Schmidt - Yes; Mr. Peflman - Yes. Said motion passed with a 4 to 0 vote. PROCLAMATIONS: None. 7~ PRESENTATIONS: 7.Ao Government Finance Officers Association - Certificate of Achievement for Excellence in Financial Reporting Mayor Schmidt stated the Finance Department has received the Certificate of Achievement for Excellence in Financial Reporting Award for fiscal year ending September 30, 2001 and noted that this is the 19th consecutive year the Finance Department has received this award. Due to the absence of the Finance Director, the City Clerk accepted the award on his behalf. 7oao Boca Raton Airport Authority - Ken Day Bill Schwartz, former Commissioner and Chairman of the Boca Raton Advisory Committee, stated as the City of Delray Beach's representative for the Boca Raton Airport he informed everyone that the airport is on State land and it is a regional airport. Mr. Schwartz introduced Ken Day, Airport Manager for the Boca Raton Airport, and briefly reviewed his credentials. Russ Buck, Community Services Officer and Noise Compatibility Officer, assisted Mr. Day with his presentation. Ken Day, Airport Manager for the Boca Raton Airport Authority, gave a brief presentation regarding the Boca Raton Airport Noise Program. Mr. Day stated to connect to BCT Airport Monitor, log on to www.bocaairport.com for flight tracking and for a full screen view of the BCT Airport Monitor go straight to www4.passur.com/bct.html. Mr. Levinson stated he feels the website is great and congratulated Mr. Day. Mr. Levinson stated the City needs to make sure the web address and the phone number are on the City's site so that someone who is in the City site can click and get over to www.4.passur.com/bct.html site. Mr. Levinson asked if Mr. Day can restrict new stage l's that fly in and base there. In response, Mr. Day stated he will have a meeting in Washington on Friday regarding the restriction of Stage 1 aircraft. Mr. Day stated the purpose of the meeting is -2- 11/19/02 to develop the scope in order to develop such procedures. Mr. Day continued to state that they received a grant for a new monitoring system. This will be state of the art and is an $800,000 budgetary item which will eventually be on the website as well. Mayor Schmidt thanked Mr. Day and stated he appreciates this new spirit of cooperation from the Airport Authority recognizing that they are a regional airport with regional impact. 7.Co Elder Ready Task Force- Officer Skip Brown Skip Brown, Officer/Volunteer Program (Police Department), stated the Elder Ready Task Force for the City of Delray Beach ceases to exist in two days (November 21, 2002) and therefore presented the first phase of the final project. Mr. Brown explained that by doing this project he has learned there is a lot of information in reference to seniors that is not kept by the City, County, or State. Mr. Brown stated this project is labeled as an assessment for November 2002. The copy was sent to the Department of Elder Affairs in Tallahassee last week and it will take approximately six weeks for them to review. At that point, the Department of Elder Affairs will make any recommendations they have to the City and will contact the City about Phase II of the project. Mr. Brown stated compiling all this information together for the past year he would consider Delray Beach approximately 60% elder ready. Mr. Brown thanked the following members of the Elder Ready Task Force: Arthur Anderson · Richard Evans · Gerald Franciosa · Alberta Gaum-Rickard · Ivan Ladizinsky · Phyllis Rosen · Bern Ryan · Karen Schell · Jeanette Slavin · James Smith · Carolyn Zimmerman · Skip Brown Mayor Schmidt commented about the next step being that the State will make recommendations on implementation and asked Mr. Brown to explain further. In response, Mr. Brown stated just submitting the recommendations to Tallahassee the City of Delray Beach is only designated as "Elder Friendly" and what the "Elder Ready" designation means is the State of Florida will put Delray Beach on all their printed material saying to seniors throughout the nation to come down. Mayor Schmidt thanked Mr. Brown and the Elder Ready Task Force for all their time and effort. In addition, Mayor Schmidt stated he looks forward to reviewing Mr. Brown's assessment and understands this is something that has been needed for a long time in the -3- 11/19/02 community. 7.9. Jefferson Manor Homeowners' Association - Delores Penn Delores Penn, 1309 Lee Street, Delray Beach and President of the Jefferson Manor Homeowners' Association, (located off Lake Ida Road just behind Pompey Park), stated her community started in the early 50's and they finished the construction in the 1960's with about 60 homes. Ms. Penn stated although they are not very proud of this they have succeeded in not getting another church in their community. Ms. Penn stated they are getting rid of a half- way house in their neighborhood. Currently, Ms. Penn stated they are in the process of doing their 3ra annual block party and stated it is a good way for all the neighbors to meet one another. Ms. Penn stated the Roots Cultural Festival came from the Jefferson Manor Homeowners' and continues to this day. Ms. Penn stated they have also participated in "Paint up Delray". Ms. Penn stated the association meets the first Monday of every month at Pompey Park at 7:00 p.m. Ms. Penn stated the Police officers' have been very helpful to help with any drug problems that they have had in the past and noted that to this point there has been no drag activity in their neighborhood. Ms. Penn stated the Jefferson Manor Homeowners' Association will be proposing that the City help with some kind of beautification for the stretch of road that leads into their community because of the heavy traffic flow coming from Lake Ida Road onto Roosevelt Avenue. 7.go City of Delray Beach Residents Academy Certificates Lula Butler, Director of Community Improvement, stated she is pleased to present the 3rd graduating class of the City of Delray Beach Residents Academy. Ms. Butler expressed thanks to the elected officials and stated it is greatly appreciated that they take the time to attend. Ms. Butler stated there was a suggestion from this class that a requirement be added that they attend at least one Planning and Zoning Board Meeting and one City Commission Meeting. Mayor Schmidt presented the following individuals with certificates: · Kenneth D. Allen · Greta Britt · Anna Blangiardo · Sandy Blovad · Steven Carlino · Irwin & Shirley Fields · Kendra Graham · Hank Higginbotham · Stephen Lampel · George Mavlios · Eileen & Robert Marks · Curt Manler · Peter Perri · Samuel Resnick · Suzy Rusk -4- 11/19/02 · Karen Schell Charlotte Schneider Susanne Sobon · Stacey Winick · Scott Zubek CONSENT AGENDA: City Manager Recommends Approval. 8.A. FINAL SUBDIVISION PLAT APPROVAL/PINE VIEW ESTATES: Approve the subdivision plat for Pine View Estates, located north of N.W. 9th Street, between N.W. 1st and N.W. 2ad Avenues. 8.B. RESOLUTION NO. 93-02: Approve Resolution No. 93-02 assessing costs for action necessary to abate nuisances on twelve (12) properties throughout the City. The caption of Resolution No. 93-02 is as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, PURSUANT TO CHAPTER 100 OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, ASSESSING COSTS FOR ABATING NUISANCES UPON CERTAIN LAND(S) LOCATED WITHIN THE CITY OF DELRAY BEACH AND PROVIDING THAT A NOTICE OF LIEN SHALL ACCOMPANY THE NOTICE OF ASSESSMENT; SETTING OUT ACTUAL COSTS INCURRED BY THE CITY TO ACCOMPLISH SUCH ABATEMENT AND LEVYING THE COST OF SUCH ABATEMENT OF NUISANCES; PROVIDING FOR AN EFFECTIVE DATE AND FOR A DUE DATE AND INTEREST ON ASSESS- MENTS; PROVIDING FOR THE RECORDING OF THIS RESOLUTION, AND DECLARING SAID LEVY TO BE A LIEN UPON THE SUBJECT PROPERTY FOR UNPAID ASSESSMENTS. 8oCo (The official copy of Resolution No. 93-02 is on file in the City Clerk's office.) ACCEPTANCE OF EASEMENT DEED/FOUNTAINS OF DELRAY BEACH~ L.L.C.: Approve and accept an easement deed granting to the City the means to install/maintain water and sanitary sewer lines to the Fountains of Delray Beach, a new retail development, located at the southwest comer of Military Trail and the L-33 Canal. goD. FLORIDA DEPARTMENT OF STATE/CONSTRUCTION GRANT AGREEMENT: Approve an agreement between the City of Delray Beach and the Florida Department of State, Division of Library and Information Services, for the Delray Beach Public Library. 8.E. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SUB- RECIPIENT FUNDING AGREEMENTS: Approve and authorize the execution of funding -5- 11/19/02 agreements with seven (7) sub-recipients (Alpha Time Children's Center, Community Child Care Center, Community Neighborhood Helping, Fair Housing Center of Greater Palm Beaches, Village Foundation, Palm Beach County Resource Center, and Urban League of Palm Beach County) under the Community Development Block Grant (CDBG) program for FY 2002-2003, with the total funding in the amount of $114,650.00 from various accounts within the CDBG fund. 8.F. AMENDED SUB-RECIPIENT FUNDING AGREEMENTS: Approve the amendments to the funding agreements with The Center for Technology, Enterprise and Development, Inc. and the Delray Beach Community Development Corporation, Inc. under the Community Development Block Grant (CDBG) program for FY 2002 to increase their reinvestment commitment to $37,500.00 each. 8.G. SERVICE AUTHORIZATION NO. 16/MATHEWS CONSULTING, INC.: Approve Service Authorization No. 16 to Mathews Consulting, Inc. for the preparation of a City-wide Reclaimed Water Master Plan and design/permitting of engineering plans for construction of reclaimed water mains in conjunction with Golf Course greens reconstruction and irrigation rehabilitation project. Funding is available from 441-5181-536-31.90 (Other Professional Services). 8..H. AGREEMENT/PLAYER'S INTERNATIONAL MANAGEMENT: Approve an agreement between the City of Delray Beach and Player's International Management, Inc. (PIM) in the amount of $20,000 per year for a term of five (5) years for the USTA 12's Super National Spring Championships. AMENDMENT NO. 6fMATCH POINT, INC. AGREEMENT: Approve Amendment No. 6 to the agreement between City of Delray Beach and Match Point, Inc. providing a waiver of exclusivity for office space to the extent to allow Player's International Management, Inc. use of the office during the five (5) year term of the agreement. 8olo THIS ITEM HAS BEEN MOVED TO THE REGULAR AGENDA AS ITEM 9.A.A. 8.J. AMENDMENT NO. 1/BAKA ENTERPRISES OF FLORIDA, L.L.C. LICENSE AGREEMENT: Approve Amendment No. 1 to the license agreement with BAKA Enterprises, Inc. setting December 8, 2002 as a "Rain" date for the boxing event to be held at the Tennis Center Stadium on December 7, 2002. 8°go THIS ITEM HAS BEEN PULLED FROM THE AGENDA. REVIEW OF APPEALABLE LAND DEVELOPMENT BOARD ACTIONS: 8oL. Accept the actions and decisions made by the Land Development Board for the period November 4, 2002 through November 15, 2002. 8oMo AWARD OF BIDS AND CONTRACTS: -6- ! 1/19/02 None. Mr. Perlman moved to approve the Consent Agenda as amended, seconded by Ms. McCarthy. Upon roll call the Commission voted as follows: Ms. McCarthy - Yes; Mayor Schmidt - Yes; Mr. Perlman - Yes; Mr. Levinson - Yes. Said motion passed with a 4 to 0 vote. At this point, the Commission moved to Item 9.A.A. of the Regular Agenda. 9~ REGULAR AGENDA: 9.A.A. REQUEST FOR PROPOSAL (RFP)/SWINTON GARDENS: Approve the RFP Review Team's recommendation of Randolph and Dewdney Construction, Inc. for the construction of eleven (11) single family homes to be located in Swinton Gardens. Mr. Peflman commented that he is happy to see a local construction company get this opportunity. Mr. Peflman continued to state that while he is happy with the floor plans he asked if the architecture for the entranceways can be enhanced a little. In response, Lula Butler, Director of Community Improvement, stated staff will be recommending some minor changes that will need to be made to help with the esthetics of the different elevations and thus giving it a better appeal. Mrs. Butler stated staff expects to give the builder his notice to proceed within the next two weeks and she is hopeful that most of the residents will be in their homes by the end of June 2003. Ms. McCarthy commented that she sent Mrs. Butler an email regarding the HOPE Awards and feels this is a prime candidate for that particular award. Mr. Perlman moved to approve the RFP Review Team's recommendation of Randolph and Dewdney Construction, Inc. as the builder for the homes to be located in Swinton Gardens, seconded by Ms. McCarthy. Upon roll call the Commission voted as follows: Mayor Schmidt - Yes; Mr. Perlman - Yes; Mr. Levinson - Yes; Ms. McCarthy - Yes. Said motion passed with a 4 to 0 vote. 9.A. APPEAL OF HISTORIC PRESERVATION BOARD DECISION: Consider an appeal of a decision of the Historic Preservation Board's action regarding the existing accessory structure located at 610 North Ocean Boulevard (Fontaine Fox House). (Quasi- Judicial Hearing) Mayor Schmidt read into the record a summary of how a quasi-judicial hearing is conducted by the City of Delray Beach. The City Clerk swore in those individuals who wished to give testimony on this item. Mayor Schmidt asked the Commission to disclose any ex parte contacts. Mayor Schmidt stated he has given all written documentation to the City Clerk and he had a telephone conversation with Jean Beer and also met with Mr. McKinney at the tree house to look at it. Mr. -7- 11/19/02 Peffman stated he has not had the opportunity to print out his emails but has listed the people and will get this information to the City Clerk. Mr. Peflman stated he had telephone conversations with Scott Christensen, Carolyn Zimmerman, Jean Beer, and Tom Lynch and had conversations with Jay Alperin, John Weaver, and Bob Costin. Mr. Perlman stated he has also talked to the following City staff: Paul Doffing, Lula Butler, and Jeff Costello. In addition, Mr. Peffman stated he had telephone calls from Frank McKinney, a meeting with Frank McKinney, Nilsa McKinney, and Rebecca Henderson. Mr. Levinson stated he has printed out his emails and will deliver them to the City Clerk and also a list of the telephone conversations. Ms. McCarthy stated she has forwarded all her emails to the City Attorney and she received a telephone call from Scott Christensen and commented that she did speak with him. In addition Ms. McCarthy stated she spoke to Paul Doffing, Lula Butler, Frank and Nilsa McKinney, and Rebecca Henderson. The City Attorney distributed copies of an email to the Commission she received today outlining a proposal by Mr. McKinney. Paul Doffing, Director of Planning and Zoning, entered the Planning and Zoning Department Project file #2002-164 into the record. The property is located approximately 900 feet south of George Bush Boulevard between Andrews Avenue and N. Ocean Boulevard. The property contains a 1,184 square foot cottage, which was constructed in 1936 of Florida cypress. Mr. Doffing stated it was inspired by the trolley made famous in Fontaine Fox's "Toonerville Trolley" cartoon strips and the Cape Cod style cottage is located on Lot 2. The lot also contains three outbuildings, one of which is a free-standing "tree house". Sometime in the year 2001 the applicant constructed this free- standing structure in front of the historic Fontaine Fox House. Mr. Doffing stated there were no permits or prior HPB approval and the structure is more elaborate in detail than a typical tree house being free-standing and is therefore considered an accessory structure which requires Board approval. The free-standing structure is currently located east of the historic main building and is supported by four large wood posts and contains a wood staircase that leads from the ground level to the main entrance. It measures 10 feet x 12feet and is approximately 28 feet high. The structure is built of frame construction with a wood shingle exterior intended to match the extant historic home and displays a gable roof with wood shakes, a balcony, electricity, and plumbing and is connected to the main dwelling via a rope bridge. After the construction the applicant sought a Certificate of Appropriateness (COA) from the Historic Preservation Board. At its meeting of June 5, 2002, the HPB considered the application at which time it was tabled with a request to provide some as-built plans. The item returned for HPB consideration at their September 4, 2002 meeting. Mr. Doffing stated while this facility may be visibly compatible with respect to design and material, the Board found it was not with respect to scale, massing, or location. The Board also found that it did not meet the criteria of the Secretary of the Interior Standards nor was it consistent with Comprehensive Plan Policy A-10, A-10.1 of the Housing Element which requires it to be consistent with Section 4.5.1(E)(4), 4.5.1(E)(7), 4.5.1(E)(8)(a-k), of which it is not. Mr. Doffing stated it was also found to be inconsistent with Objective C-l, Coastal -8- 11/19/02 Management Element in the City's Comprehensive Plan. At this point, Mr. Dorling stated one of the items was brought up during the review at the HPB Meeting by the applicant's attorney was that John Volk often provides significant structures in front of his other historic homes. Mr. Dorling entered into the record an email that City staff received from Amy Groover Streelman who is the Senior Architectural Historian for Janus Research along with her r6sum6 (the email contains a rebuttal made at the HPB Meeting by the applicant's attorney). Wendy Shay, Historic Preservation Planner, entered into the record the Secretary of the Interior's Standards for Rehabilitation and Illustrated Guidelines established by the United States Department of the Interior for rehabilitating historic structures and explained that these are guidelines used by the State as well as local governments. Ms. Shay stated there could not be positive findings with regard to scale, height, orientation, and location and because of this the Board could not support the current location of the accessory structure. In summary, Mr. Dorling reiterated that at its meeting of September 4, 2002, HPB did deny the COA for this project based upon the failure to find positive findings with respect to LDR Section 4.5.1.(E)(4), (E)(7), & (E)(8), Objectives and Policies of the Comprehensive Plan and the Secretary of the Interior's Standards for rehabilitation. Rebecca Henderson, Attorney representing the applicant~ explained that this is a tree house which is located near the historic property but is not attached to it and in no way destroys it. Ms. Henderson stated the tree house cannot be seen from any surrounding property and is completely contained within the McKinney residence. Ms. Henderson presented photos to the Commission of the tree house showing where the trees actually grow through the tree house. Mayor Schmidt declared the public hearing open. Kevin Warner~ 248 Venetian Drivel Delray Beach~ stated he does not feel this will detract from the overall importance of this property as an historic asset and feels the Commission should take this into consideration when making their decision. Mr. Warner stated he does not feel the slightest intrusion of the tree house in terms of being able to appreciate the historic aspects of this main dwelling. Ruth Ann Kuehn (unable to obtain address), stated she was unaware that Fontaine Fox's house was in Delray Beach until she read an article in the newspaper about the tree house. Ms. Kuehn stated she feels that the City has gotten so much publicity out of this that the tree house should stay where it is because people might come to see the tree house and the Fontaine Fox house. Mary Lou Jamison, Chairperson of the Historic Preservation Board, stated the Board based their rulings on the City's guidelines and therefore urges the Commission to uphold the City's Historic Preservation guidelines. Clemence Buleer, friend of the applicant (unable to obtain address), stated he -9- 11/19/02 feels guidelines are meant to "guide" not "rule". Mr. Bulger stated he does not feel the tree house should be ruled away because it is not really attached to the home and does not change the public view about Delray Beach. Jean Beer, 2145 S.W. 26t~ Terrace~ Delray Beach, urged the Commission to support the Historic Preservation Board's decision. Mrs. Beer stated there is a lot of talk about how the tree house cannot be seen and feels the question is really whether or not the tree house is or is not compatible and consistent and how will this affect other decisions of historic property. Carolyn Zimmerman~ 212 S.W. 2nd Avenue, Delray Beach, stated a contractor is supposed to know to obtain permits and get permission to do things. Ms. Zimmerman expressed concern over setting a precedent that residents can do anything they want since the City allowed a contractor to get away with doing his thing. Furthermore, Ms. Zimmerman urged the Commission to do what is right for Delray Beach. Alice Finst, 707 Place Tavant, Delray Beach, stated when this property was originally approved as a historic preservation activity for the City of Delray Beach she was part of the Historic Preservation Board that made the approval and emphasized that the Board never considered that this property would be hidden from public view. Mrs. Finst stated everyone is relying on foliage and in the event of a hurricane the foliage may not be there. Mrs. Finst continued to state that the tree house detracts from the historic building and the Board approved the historic building as part of the preservation program. Mrs. Finst urged the Commission to honor the Boards decision from almost 20 years ago and feels this should stay the way it was approved. John Bennett, President of Progressive Residents of Delray (PROD) and speaking on behalf of the organization by authorization of the Board of Directors~ urged the Commission to support the recommendation of the expert planner and the unanimous decision of HPB and deny the appeal. Mr. Bennett stated he was on the grassy area east of A-1-A with his dog and stated the accessory structure is readily visible as is a small portion of the original historic dwelling. Second, during consideration of the request from the applicant for increased number of building lots on the rest of this property that the Fontaine Fox house was not designed by Volk according to the applicant. Mr. Bennett read an advertisement describing 610 N. Ocean Boulevard (the current structure) "designed by John Volk" and the adjacent house as "an authentic John Volk design home" (622 N. Ocean Boulevard). Mr. Bennett stated pursuant to LDR Section 1.4.4(A) provides that "Any person who violates these Regulations, or fails to comply with any of its requirements, shall upon conviction thereof, be fined not more than $500 and/or imprisonment for up to 60 days or both, and shall pay all costs and expenses involved in the case. Each day such violation continues shall be considered a separate offense." Mr. Bennett stated aside from any building permits the failure to have a Certificate of Appropriateness could add up. Mr. Bennett stated this is mainly the rule of law and commented that this is very important public interest. Furthermore, Mr. Bennett noted there are rules and regulations to be followed and feels the applicants took a risk. -10- 11/19/02 Mr. Bennett stated that HPB was told that the tree house was very carefully picked out from the cartoon to match a clubhouse in the cartoon. Mr. Bennett stated the agent also claimed that this was something that just started small and grew out of proportion. For the record, Mr. Bennett entered the pertinent reports of the pleading and the advertisements in question. Gerry Franciosa~ 939 Eve Street~ Delray Beach~ stated it appears that everyone agrees that this is a tree house and read a magazine article dated August 2002 into the record. Monty Helm~ 1221 Harbor DriveI Delra,y Beach~ stated this piece of property is a historically designated site and strongly opposes the appeal. Mr. Helm stated he finds this situation disturbing and asked if it is a beginning of more to come. Mr. Helm commented that there are very few pieces of property in Delray Beach that are worth saving and/or preserving. Mr. Helm stated the applicant was fully aware that the property was a historically designated piece of ground when the property was purchased. Mr. Helm stated now a tree house has been added to the property which he feels should not have been done and stated the applicant is also trying to have this property subdivided in order to develop. There being no one else from the public who wished to address the Commission regarding the appeal, the public hearing was closed. Rebecca Henderson stated this property has been around since 1936 and stated the site plan which Mr. Dorling presented showed three buildings that were historic on this site and the remainder is all new. Ms. Henderson stated that the Secretary of Interior Standards recognizes that historic structures can be modified to accommodate new property owners. Ms. Henderson stated one of the ways this has been made harmonious with the community is buffering which is a concept which is well accepted in the LDR's. Ms. Henderson stated the buffering was already there and the applicant has offered to leave the buffering. Ms. Henderson reviewed the conditions that the applicant has offered that they believe would meet some of Historic Preservation Board's concerns. Ms. Henderson stated (1) deed restriction requiring the vegetation to remain and if it were destroyed knowingly and intentionally by the owner that the tree house be removed in a reasonable amount of time, (2) If the vegetation (sea grapes) was destroyed otherwise that the property owner be required to replace it or allow it to grow (whichever would be the quickest in a reasonable amount of time), and (3) If the tree house itself was destroyed by hazard or by a hurricane that it not be replaced but if it were destroyed by an intentional act that it be allowed to be replaced and that the existing supports be painted to match the tree trunk. Ms. Henderson believes this would make the structure even more compatible. Frank McKinne¥~ 610 N. Ocean Boulevard (applicant)~ stated he built what has always been a childhood dream of his and a playhouse for his daughter. Mr. McKinney stated he took great pride in the manner in which the tree house was constructed in keeping with the main house using old Fontaine Fox cartoon books for design reference. Mr. McKinney apologized to the Commission and City staff in the Building Department for putting them in an uncomfortable position. Mr. McKinney stated while he is here for appeal of only those items found in the HPB recommendation, he hopes that the submittal of the plans and permanent -11- 11/19/02 application show his intent. Mayor Schmidt stated the applicants have suggested the following alternative "If the vegetation is removed or reduced in height other than voluntarily and knowingly by the owner, that the owner be permitted to replace and/or re-grow the vegetation in a reasonable period of time." Mayor Schmidt stated staff's recommendation is that if the Commission is to consider that condition that the language be changed to state "If the vegetation were removed, trimmed, damaged by storm, etc. to an extent that would make the tree house and/or main structure visible from the property line, the tree house/accessory structure would be removed." Mayor Schmidt inquired if this language is acceptable to the applicants. Brief discussion followed between Mayor Schmidt, Ms. Henderson, and staff. Mr. Perlman asked Ms. Shay to address concerns regarding scale and massing. Ms. Shay stated the issue is the size of the structure and its relationship to the main dwelling. Ms. Shay stated this is an independent structure that is 28 feet high in front of the two-story structure. Ms. Shay continued to state that in the City's LDR Section 4.5.1(E)(4), (E)(7), and (E)(8) the issue is visual compatibility, height, scale, massing, and some reference is made to location as well. Ms. Shay stated the Board made their decision based on the LDR's and was not just based on the fact that staff tried to use those guidelines in preservation. Mayor Schmidt stated he would support some sort of compromise along the lines of what has been presented by the applicant. Mayor Schmidt stated he requested staff to research if the City has ever had any structures demolished after they were built because of the failure to get a COA or a building permit. Mayor Schmidt stated staff has found two instances going back approximately 13 years and read into the record the response from staff (also entered this into the record). Mayor Schmidt feels the City would be setting a precedent if we require a removal of the building given our record in the past and therefore he will not support that this evening. Mr. Levinson stated he supports HPB and believes the accessory structure is incompatible. Mr. Perlman stated he sees this as three issues (1) the importance of the City's rules, (2) the integrity of the Historic Preservation efforts, and (3) this Commission and past Commission's ability to make decisions that respect Delray's uniqueness and longstanding policy to try to strive for consensus and to find common ground where possible. Mr. Perlman suggested this may be something that the Commission may want to remand back to HPB to see if they can come up with a workable solution and if they cannot do it then he would support HPB. Ms. McCarthy stated she appreciates what the position of the HPB is supposed to be and the guidance they are supposed to give to the Commission. Ms. McCarthy stated she believes the Volk house is just as important in the City of Delray Beach as the old original Perish house or another historic home that she sited down on Swinton Avenue and S.W. l0th Street which she has not seen come forward on an agenda. Ms. McCarthy stated she is very disturbed to see that approximately five homes in the West Settlers area have been demolished and that HPB did not fight for those homes. Ms. McCarthy stated she strongly believes in equality for all -12- 11/19/02 people and feels all historic homes should be treated the same. As a layperson and a real estate licensee, Ms. McCarthy stated she feels it does not appear to be offensive to the structure that is already designated historic. Ms. McCarthy stated she is in favor of this tree house being preserved within the tree with some type of compromise. Furthermore, Ms. McCarthy stated she does not believe because you can see the A-Frame at the top from standing on the beach on a hill or your tip toes that it distracts from the structure. Ms. McCarthy stated the sea grapes are a protected entity. Ms. McCarthy stated the tree house is not an addition to the house and does not touch the house. Ms. McCarthy stated most of the discussions this evening were about the remodeling of a historic structure and she does not see this being done and sees this as a tree house. With regard to the size being out of perspective in comparison to the volume that the house takes up, Ms. McCarthy stated she has not heard any guidelines that say what that volume is supposed to be and does not see this as a distraction. In summary, Ms. McCarthy supports keeping the tree house in the tree and leaving it in its current location. Brief discussion followed between Mayor Schmidt and the City Attorney with regard to sending this back to HPB to find a compromise. Mr. Perlman moved to approve asking HPB and staff to try and negotiate a settlement on a particular COA and what impact they think after-the-fact requests for a COA will have on the future improvements to historic properties, seconded by Ms. McCarthy. Prior to the vote, Ms. McCarthy stated the reason she seconded the motion made by Mr. Perlman is because although she does not agree with all the decisions that HPB has made in other areas of the City, them are many things they have done that she applauds them for. Ms. McCarthy stated she would like HPB to have the opportunity to review these compromises. Ms. Henderson stated those conditions were discussed with the Board and the applicant would like to see some resolution to this now. Therefore, Ms. Henderson stated the applicant cannot come up with any other compromise to present to HPB. Mr. Perlman withdrew his first motion. Mr. Peflman moved to deny the appeal of the Historic Preservation Board's action regarding the existing accessory structure located at 610 N. Ocean Boulevard, seconded by Mr. Levinson. Upon roll call the Commission voted as follows: Mr. Peflman - Yes; Mr. Levinson - Yes; Ms. McCarthy - No; Mayor Schmidt - No. Said motion to deny the appeal failed based on a tie vote (2 to 2), upholding the Historic Preservation Board's decision. At this point, the time being 8:15 p.m. the City Commission took a short break. The time being 8:20 the City Commission reconvened and moved to Item 9.B. of the Regular Agenda. 9.B. REQUEST TO REDUCE LOT AREA/LOT FRONTAGE WIDTH/S.E. O'NEAL PLAT: Consider a request to reduce the total lot area and lot frontage width -13- 11/19/02 requirements in conjunction with the proposed plat for an extant historic property known as S.E. O'Neal Plat, located on the west side of N.E. 2nd Avenue, between N.E. 9th Street and N.E. l0th Street. (Quasi-Judicial Hearing) Mayor Schmidt read into the record a summary of how a quasi-judicial hearing is conducted by the City of Delray Beach. The City Clerk swore in those individuals who wished to give testimony on this Mayor Schmidt asked the Commission to disclose any ex parte contacts. No ex parte contacts were disclosed. Paul Doffing, Director of Planning and Zoning, entered the Planning and Zoning Department project file #2002-398 into the record. The property currently consists of five lots with Lot 3 containing the historically designated O'Neal House, which is a two-story dwelling and a one-story detached garage, constructed in 1926. The garage also contains a 400 square foot frame shed addition that is structurally unstable and demolition is proposed (previously approved by HPB on November 6, 2002). The proposed plat will reconfigure five lots into three, fee-simple, single-family detached lots with the retention of the historic house. The proposed plat requires waivers to the LDR Section 4.3.4 for reduction lot frontage/width from 75 feet to 60 feet, and lot size from 9,500 square feet to 9,368 square feet for the proposed Lots 1 and 3 and the lot size from 9,500 to 6,000 square feet for the proposed Lot 2. Mr. Dorling stated required findings are made in the Planning and Zoning Staff Report with respect to Section 3.1.1 and Section 3.2.3 and therefore staff recommends approval of both the plat and the waivers. Mayor Schmidt expressed concern that this development has a number of significant mature trees and he would not like to see these trees leveled so that houses could be built. Mayor Schmidt entered a memo into the record from Nancy Davila, City Horticulturist. Jack Frvsin~,er, 419 S.E. 4th Avenue~ Delra¥ Beach {applicant), stated he believes the specimen trees are all outside of the permitted building lines. Furthermore, Mr. Frysinger stated when they started with this project he was informed by staff that the house be declared historic if in fact it is historic. Mr. Frysinger stated the entire five lots have been declared historic so therefore he believes they fall under the control of HPB. Mr. Frysinger stated he would like to see the trees saved. Mr. Doffing stated HPB does not control the removal of vegetation but they could consider that in their approval process as a condition of approval. -14- 11/19/02 Brief discussion by the applicant, staff, and the Commission followed. Mr. Doffing stated Commission could direct staff that these trees be restored and be a part of the review process. Mayor Schmidt suggested that the Commission give direction to both the Historic Preservation Board and to the City Horticulturist to save as many of the significant trees in the development of the property as possible. Wendy Shay~ Historic Preservation Planner~ stated the site plan approval will need to come through her prior to going to HPB for review and commented she would be more than happy to work with the City Horticulturist to set up retention of the trees as a condition of approval. Ms. McCarthy stated she has found this particular builder to be very responsible and responsive to things that the City has asked and requested. Mayor Schmidt declared the public hearing open. Mary Lou ~lamison~ 515 N. Swinton Avenue (Chairperson for HPB), urged the Commission for their support with regard to this matter. There being no one else from the public who wished to give testimony regarding the request and therefore the public was closed. Ms. McCarthy moved to approve the request with direction to both the Historic Preservation Board and the City Horticulturist that as many of the significant trees be saved in the development of the property as possible, seconded by Mr. Perlman. Upon roll call the Commission voted as follows: Mr. Levinson - Yes; Ms. McCarthy - Yes; Mayor Schmidt - Yes; Mr. Perlman - Yes. Said motion passed with a 4 to 0 vote. 9.C. REQUEST FOR FUNDING/PERFECT RESULTS~ INC.: Consider a request from Perfect Results, Inc. for financial support in the amount of $10,000.00 for the C. Spencer Pompey Tribute Video. Mayor Schmidt stated it appears that Jane Bassa Tolliver with Perfect Results, Inc. is asking the City to fund the entire budget for this. Mayor Schmidt stated if the City granted the request and gave her $10,000 this would be more than the entire discretionary budget for the entire year. Mayor Schmidt asked Ms. Tolliver what other organizations, if any, she has sought funding from in addition to the City. In response, Ms. Tolliver stated she did not seek any additional funding. However, Ms. Tolliver stated last year Commissioner Addie Greene contributed $15,000 to their budget for what was supposed to be co-sponsorship for the video itself. Ms. Tolliver stated because of other commitments that were not honored, they ended up utilizing a portion of that budget instead of using it as money for the video itself for the reception. -15- 11/19/02 Ms. Tolliver stated a video of the magnitude of the one that was produced in honor of C. Spencer Pompey including the archival footage and the licensing agreements and other archival facilities, the video alone would have been approximately $15,000-$35,000. Ms. Tolliver stated because of the interest from the community they felt if they could receive additional funding it would help them finish the video since the video is not complete ($5,000). Ms. Tolliver stated the other fees requested would be the catering for the three receptions, which would be held at the Delray Beach Library, Carver Middle School, and Old School Square, which would all take place in February 2003. In addition, Ms. Tolliver stated there was also the proposal to add a photo exhibit. Ms. McCarthy commented that the City has events throughout the year and the events that were cast for this next fiscal year have already been approved and budgeted for and this request has not been budgeted for. Ms. McCarthy stated she would like to recommend that we do not move on this item so that staff can work with Ms. Tolliver so that it can be put in the proper budget format and then that it be brought back to the Commission so the Commission will have time to address it. Ms. McCarthy moved approval to table this item so that it can be put in the proper budget format, seconded by Mr. Levinson. Upon roll call the Commission voted as follows: Ms. McCarthy - Yes; Mayor Schmidt - Yes; Mr. Perlman - Yes; Mr. Levinson - Yes. Said motion to table passed with a 4 to 0 vote. 9.D. APPOINTMENT TO THE EDUCATION BOARD: Appoint one (1) regular member to the Education Board to fill an unexpired term ending July 31, 2004. Based on the rotation system, the appointment will be made by Commissioner Perlman (Seat gl). Mr. Perlman moved to appoint Diane Allerdyce as a regular member to the Education Board to fill an unexpired term ending July 31, 2004, seconded by Ms. McCarthy. Upon roll call the Commission voted as follows: Mayor Schmidt - Yes; Mr. Perlman - Yes; Mr. Levinson - Yes; Ms. McCarthy - Yes. Said motion passed with a 4 to 0 vote. 9.E. RESOLUTION NO. 94-02: Consider approval of Resolution No. 94-02 authorizing the acquisition of property by eminent domain for parking purposes. The caption of Resolution No. 94-02 is as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZING AND DIRECTING THE ACQUISITION OF FEE SIMPLE TITLE TO CERTAIN REAL PROPERTY HEREAFFER DESCRIBED FOR THE PUBLIC PURPOSE OF CLEARING TITLE TO THE SUBJECT PROPERTY, FOR PROVIDING PUBLIC PARKING IN DOWNTOWN DELRAY BEACH AND FOR STIMULATING ECONOMIC DEVELOPMENT IN THE DOWNTOWN AREA OF THE CITY OF DELRAY BEACH; DECLARING THAT THE ACQUISITION OF THE PROPERTY IS NECESSARY FOR SAID PUBLIC PURPOSE; -16- 11/19/02 AUTHORIZING THE HIRING OF LEGAL COUNSEL, APPRAISERS, AND EXPERTS IN OTHER DISCIPLINES AND THE FILING OF EMINENT DOMAIN PROCEEDINGS PURSUANT TO CHAPTERS 73 AND 74, FLORIDA STATUTES; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. (The official copy of Resolution No. 94-02 is on file in the City Clerk's office.) This item has been postponed to a date certain of December 10, 2002. PUBLIC HEARINGS: None. At this point, the Commission moved to Item 11, Comments and Inquiries on Non-Agenda items from the City Manager and the Public. ll.A. City Manager's response to prior public comments and inquiries. ll.B. From the Public. ll.A. City Manager's response to prior public comments and inquiries. Robert A. Barcinski, Acting City Manager, had no response to prior public comments and inquiries. ll.B. From the Public. ll.B.1. Jean Beer~ 2145 S.W. 26th Terrace~ Delray Beach, complimented Officer Skip Brown and the Elder Ready Task Force. Mrs. Beer stated she appreciates Mayor Schmidt and the Finance Director for thoroughly addressing the Parks Bond Issue at the PROD Meeting. Mrs. Beer stated a bond issue adds to the millage and commented for some people particularly retirees $70 a year is a lot of money. Mrs. Beer feels it is very easy to say "everything we do raises the value of your home" and stated it could be a potential problem for someone if they cannot sell their home and buy another one with the taxes being less. Furthermore, Mrs. Beer urged the Commission that when they look at something that is going to raise the millage rate, to take into consideration that there are a lot of people in the community who are barely making ends meet and cannot afford to pay more. Mrs. Beer stated she is delighted to see the house on the southeast comer of S.W. l0th Avenue and S.W. 10th Street has been tom down. Mrs. Beer stated there is a huge track of vacant property and feels this is something that should be brought to the attention of Lula Butler, -17- 11/19/02 Director of Community Improvement and to the homeowners' association in this area so that they can work together to get something really good on this comer. ll.B.2. Steve Carlino, owner of AIM Mail Center, 255 N.E. 2nd Avenue, Delray Beach~ expressed concern over the Post Office being transferred to a private enterprise. Mr. Carlino stated he started his business on October 14, 2002, and is located diagonally across from the Post Office. Mr. Carlino expressed concern over the CPU (Contracted Postal Unit) in place of the Post Office and explained that a CPU is private enterprise and they are allowed to expand and change with the permission of the Post Office. He is concerned that these people may not follow the current CPU contract. Mr. Carlino stated his facility allows for expansion and currently has 160 free standing mailboxes. Mr. Carlino stated his facility will help Pineapple Grove and stated the CPU has been presented to a number of people around town and none of the businesses that were approached found it to be cost effective. Mr. Carlino requested that the Commission reconsider providing a subsidy to a private entity. ll.B.3. Gerry Franciosa, 939 Eve Street, Delray Beach~ apologized for breaking the rules at the last City Commission Meeting and commented he will abide by the rules from now on. 12....: FIRST READINGS: None. 13. Comments and Inquiries on Non-Agenda Items. 13.A. City Manager. Robert A. Barcinski, Acting City Manager, had no comments or inquiries on non- agenda items. 13.B. City Attorney. The City Attorney had no comments or inquiries on non-agenda items. 13.C. City Commission. 13.C.1. Commissioner Perlman Mr. Perlman stated several months ago when the Commission was reviewing ordinances for the sober houses he envisioned some kind of Summit Meeting with everyone involved. Mr. Perlman stated he believes the Drug Task Force took over but he is not sure where the effort is and feels this is important enough to make a priority. Mayor Schmidt stated Commissioner Archer is the Chair for the Drug Task Force and suggested that she give the Commission an update at the next meeting since she is not present this evening. -18- 11/19/02 With regard to comments expressed by Mr. Carlino, Mr. Peflman stated he was under the assumption that Mr. Weiss had Board support to save the Post Office and he was thrown by the Board voting against their providing subsidy. Mr. Perlman stated he has a problem with subsidizing after year one especially since the business district that they are trying to benefit does not want to "step to the plate" with their own funds. Mr. Perlman suggested that the Commission obtain more information from the Pineapple Grove Executive Committee. Mr. Peflman stated he spoke to the General Manager of the Marriott earlier in the week who informed him that the hotel received 1,000 room nights from the filming of the Bad Boys II movie and commented that it really helped them through the month of September. 13.C.2. Mayor Schmidt With regard to comments expressed by Mrs. Beer, Mayor Schmidt stated he spoke at PROD this morning with Joe Safford, Director of Finance and Joe Weldon, Director of Parks and Recreation and had been asked to make a presentation on the proposed Parks Bond Issue thinking in anticipation that it would be on the March 2003 ballot. Mayor Schmidt stated he hopes he made it clear this morning that the Commission has not made any decisions on what they are going to do. Since the Commission has been asked to discuss it, Mayor Schmidt stated he presented it as here is the list of items and here is the estimated cost. Mayor Schmidt stated if the City did a bond issue for all of these items at these estimates this is what it would cost. Mayor Schmidt stated there was a list given to the Commission as part of the Capital Improvement Project budget process and at that time the Commission decided that they would probably need to have a separate Workshop Meeting on this in order to get information prioritized and see whether or not the Commission may want to move forward or not. Furthermore, Mayor Schmidt stated the total cost is approximately $18.5 million. Secondly, Mayor Schmidt stated he was very pleased to get a letter from the City Manager of Moshi, Tanzania and they have entered into a Sister City with Miyazu, Japan. Mayor Schmidt stated he is glad to see this relationship moving forward after their meeting here. 13.C.3. Commissioner McCarthy Ms. McCarthy stated a few meetings ago she thanked everyone for their help and cooperation when the City hosted the Palm Beach County Black Elected Officials' Annual Gala held at the Marriott Hotel. Ms. McCarthy stated she has found out since that time that there are Commissioners of neighboring counties who have now turned around and are booking the Marriott Hotel for family reunions in bringing large families to the City. Ms. McCarthy stated Robert A. Barcinski, Assistant City Manager, has been working with her diligently through Tracey Sweeney, Executive Assistant and they made a presentation in Broward County to get a breakout session for approximately 900 attendees to the 20th Anniversary for the National Forum for Black Public Administrators throughout the United States. Ms. McCarthy stated they received word this week that they won that breakout session and thus these attendees will be here in Delray Beach. Ms. McCarthy stated they are staying in Fort Lauderdale and will come to -19- 11/19/02 Delray Beach on April 28, 2003. Ms. McCarthy commended and applauded Mr. Barcinski and Tracey Sweeney for all their hard work. 13.C.4. Commissioner Levinson Mr. Levinson commented about the letter sent to Coral Trace with some offers to settle and inquired if the City has heard back from their attorney. In response, the City Attorney stated the City has not yet heard back from the attorney representing Coral Trace. Secondly, Mr. Levinson congratulated the Atlantic High School football team for winning 11 consecutive football games and making it to the play-offs. Mr. Lcvinson suggested that something be done to recognize the team for making it this far. Mr. Levinson stated hopefully the shuttle which has been delayed twice before will actually get off the ground Friday evening (November 22nd). Mr. Levinson suggested that the Commission recognize Vince Canning Shoes for their $0th anniversary. There being no further business, Mayor Schmidt declared the meeting adjourned at 9:20 p.m. City Clerk ATTEST: MAYOR The undersigned is the City Clerk of the City of Delray Beach, Florida, and the information provided herein is the Minutes of the Regular City Commission Meeting held on November 19, 2002, which Minutes were formally approved and adopted by the City Commission on -20- City Clerk 11/19/02 NOTE TO READER: If the Minutes you have received are not completed as indicated above, this means they are not the official Minutes of the City Commission. They will become the official Minutes only after review and approval which may involve some amendments, additions or deletions as set forth above. -21- 11/19/02 TO: THRU: FROM: SUBJECT: ~ECEIVED 2 5 2.001. C~TY MANAGER SCOTT PAPE, SENIOR PLANNER MEETING OF DECEMBER 3, 2002 SITE PLAN REVIEW AND APPEARANCE BOARD AWARD RECOGNITION PROGRAM The Site Plan Review and Appearance Board (SPRAB) is conducting its 11th annual Award Recognition Program. The awards are given to those property owners and their design teams who have significantly contributed to the beauty of the community through creative design or renovations to existing properties. Eligible projects are those that were approved by the Board, and received a Certificate of Occupancy during the previous fiscal year (October 1, 2001 - September 30, 2002). The SPRAB awards will be presented to the recipients mentioned below at the City Commission meeting. This year's design categories and recipients include: NEW COMMERCIAL DEVELOPMENT Autobahn Motors Autobahn Motors, Inc. (Owner) Eliopoulos and Associates, Inc. (Architect) Dave Bodker Landscape Architecture and Planning (Landscape Architect) PRIVATE COMMUNITY FACILITY MULTIPLE FAMILY RESIDENTIAL DEDEVELOPMENT Co-Winners: The Estuary Porten Companies (Owner) Robert G. Currie Partnership (Architect) Jerry Turner & Associates (Landscape Architect) Morton Downey Family Resource Center Community Child Care Center of Delray Beach (Owner) ), Robert G. Currie Partnership (Architect) ~, Dave Bodker Landscape Architecture and Planning (Landscape Architect) Ocean Hammock Ironwood Properties, Inc. (Owner) Rustem Kupi (Architect) Mucciolo Design (Landscape Architect) EXTERIOR RENOVATIONS NEW INDUSTRIAL DEVELOPMENT Co-Winners: SOPRA Restaurant TD1 Restaurant (Owner) Robert G. Currie Partnership (Architect) Just Tiles and Marble CMSI (Owner) JMS Design, Inc. (Architect) Butterfly Landscaping, Inc. (Landscape Architect) Zenith Commerce Center D.P.O.C. Associates Ltd. (Owner) Kenneth Carlson (Architect) Kevin E. Holler (Landscape Architect) WALL SIGNAGE Longhorn Steak House > Longhorn Steak House (Owner) ~, Art Sign Co., Inc. (Contractor) FREESTANDING SIGNAGE Delray Bay Apartments >' Olen Communities, Inc. (Owner) > McNeill Signs, Inc. (Contractor) I:IT¥ KIEl. RI:IV DELRAY BEACH AII-AmedcaCity 1993 2001 300 N.W 1st AVENUE Memorandum DELRAY BEACH, FLORIDA 33444 561/243-7000 To' From: Thru: Subject: City Manager--David Harden Director of Out of School Progra~,To~ya Smith Director of Parks and Recreation--~oe Weldon After School Program Presentation Date: 11/21/02 I would h~kc to have thc oppommity for our After School Program children to present to City Commission on December 3, 2002 winners from a contest we held on "All About Me". The selected winners are from three sites, Pine Grove Elementary., Community Center, and Pompey Park. Grade K--1 participated in the Coloring Coritest. Grade 2--3 participated in the Drawing Contest. Grade 4--5 participated in the Essay Contest. We would like to present the C/ty Commission with a copy of our newsletters featuring these essays and display the drawing on a board, or on the walls of the Commission Chambers. We have Departmental certificates I hope the Mayor would be willing to present to the children. We also would like to introduce our Out of School Advisory Board members for the Out of School Program. They help review and suggest new ideas to enhance the Out of School Program. I strongly believe acknowledging the efforts of these children will encourage them to learn and develop ideas about their role as citizens in our community and the world at large. I greatly appreciate your attention. Thank you. S thu / · Director of Out ~)School Program THE EFFORT ALWAYS MATTERS Pnnted on Recycled Paper DELRAY BEACH Delray Beach Parks & Recreation Out School Program Essay Contest Winner November 2002 Community Center Valeria Mandujano Jim Loscielle Rudy Con& Jeremy Morris Pine Grove Jasmine Smith Carmeron Lewis Marlo Aparicio Dinashell Noel Drawing Contest Winners: Community Center Pine Grove Pompey Park Aridly Thelismon Tatyona Evans Riana Towsend Desmond Phillips Pompey Park Travon Campbell Kayla Thomas Andres Aguirre Kadesha Baker Fabiana Damisse Todney Evans Kenisha Brown Kiesha Odom Rejene Gabriel Coloring Contest Winners: Community Center Brian Welch Alexis Mendoza Mariariette Rolon Pine Grove Frank Barker Francisca Dieubon Ariel Rolle Pompey Park Kaisja Evans Alexandria Fenelon Ariel Cherry Date: Nov. 21~ 2002 AGENDA REQUEST Request to be placed on: Consent Agenda , × Regular Agenda 1Vhen: Dec. 3, 2002 Workshop Agenda Special Agenda Description of Agenda Item (who, what, where, how much): Request approval present to City Commission the winners of the "All About Me" contest, a copy of newsletter featuring the essays and drawings and introduce the Out of School Advisory Board members. to the Department Head~ _k ~'~ ~)_Q ~ Signature: (~'-~--,' ~'--~ ~ City Attorney Review/Recommendation (if applicable): Budget Director Review (required on all items involving expenditure of funds): Funding Available: Yes / No Initials: Account Number Description Account Balance: Funding Alternatives: City Manager Review: Approved for Agenda: ~/No Initials: Hold Until: Agenda Coordinator Review: Received: (if apphcable) MEMORANDUM TO: FROM: SUBJECT: MAYOR AND CITY COMMISSIONERS CITY MANAGER ~'-12k AGENDA ITEM # c3\\. REGULAR MEETING OF DECEMBER $, 2002 FINAL PLAT APPROVAL/DELRAY 403 DATE: NOVEMBER 27, 2002 This is before the Commission to approve the final subdivision plat for Dekay 403. The property is a minor two (2) lot subdivision located on the northeast side of S.E. 1st Street and S.E. 4th Avenue. All technical and staff comments have been addressed and the plat is ready for approval. Recommend approval of the final subdivision plat for Delray 403. S:\City Clerk\chevelle folder\agenda memos\Final Plat. Delray s,03.1Z3 02 City Of Delray Beach Department of Environmental Services M E M 0 R A N D U M TO: FROM: DATE: PROJECT: ACTION: David T. Harden Randal L. Krejcarek, P.E. 26 Nov 2002 Delray 403 Plat Subdivision Plat Approval The attached agenda request is for Commission approval of the plat for Delray 403. Also attached is a location map and reduced copy of the plat. The property is located on the north east side of SE 1s~ Street and SE 4th Avenue. Since this is a minor two lot subdivision, Planning and Zoning Board approval is not required. Please place this agenda request on the 3 Dec 2002 Commission Agenda. Thanks! ertc cc TAC file file: S:\EngAdmin\TAC\Delray 403\plat agenda memo 03dec2002.doc Printed: 11/26/2002 ~ m~ N E 2ND ST ' ~ I I , ~ I I ,, = N E 1ST ST i I Z~ ' Z Z , I , ATLANTIC AVENUE ', ~ ~~ ~ //~ ~ ~ Cl~ of DELRAY BEACH .----,-- ~,------E~NME~AL 8E~E8 DEP~E~ PLAT OF DELRAY ~0~~oo~_~oo r ~ ~,~ ~ DA~ '1-~6-2~21 OF 1 g z Date: August 27, 2002 AGENDA REQUEST AGENDA ITEM NUMBER:%~ (if applicable) Funding Available: Yes / No Initials: Account Number Description Account Balance: Funding Alternatives: City Manager Review: Approved for Agenda.~'/No Initials: Hold Until: Agenda Coordinator Review: Received: S:XEngAdmin\TACXDelray 403\plat agenda 03dec2002.doc N.A. Request to be placed on: X Consent Agenda Regular Agenda Workshop Agenda Special Agenda When: September 3, 2002 Description of Agenda Item (who, what, where, how much): Request for Commission approval of the Delray 403 subdivision plat. The property is located on the north east corner of SE Ist Street and SE 4th Avenue. Since this is a minor two lot subdivision, Planning and Zoning Board approval is not required. Attached is a location map and reduced copy pf the pl~ Department Head Signature: ~/~~~/~'~ City Attorney Review/Recommendation (if applicable): Budget Director Review (required on all items involving expenditure of funds): TO: THRU: FROM: SUBJECT: I ' I ' I IIII II II 'i~'~' DAVID T. HARDEN, CITY MANAGER ~.,~/~ff/3r~,.~ .^u. MEETING OF DECEMBER 3, 2002 ~SENT AGENDA* NGUYEN TRAN, SENIOR PLANNER, ~a~..~ ABANDONMENT OF A 12' WIDE WATER EASEMENT LYING WITHIN A PORTION OF LOTS 3 & 4, BLANK-NICHOLS SUBDIVISION ALONG WITH THE COMBINED PRELIMINARY/FINAL PLAT FOR A 1.973 ACRE DEVELOPMENT KNOWN AS THE MERIDIAN, LOCATED ON THE EAST SIDE OF S.E. 6TM AVENUE (NORTHBOUND FEDERAL HIGHWAY), BETWEEN S.E. 3RD STREET AND S.E. 4TM STREET. 11111111111111111111111111111111111111 III II I I · ~ ~ II III~ The subject property consists of Lots 1 through 6 of Blank-Nichols Subdivision (Plat Book 13, Page 28) and the west 143' of the south half of Block 120, Town of Delray (Plat Book 1, Page 3). At its meeting of September 17, 2002, the City Commission approved the abandonment of the 16-foot north-south alleyway within Blank-Nichols Subdivision. The west 8' of this abandoned alleyway adjacent to Lots 1 through 6, Blank-Nichols Subdivision and the west half of the alleyway running through the center of the North 87.5' of the south half of Block 120 is also included as part of the subject property. The entire 1.973 acre development is located on the east side of S.E. 6th Avenue, between S.E.3rd Street and S.E.4th Street. The property previously contained the Bou§hton Hotel (apartments), the Steve Moore Chevrolet used car sales facility, the Nozzle Nolen offices and the 7-11 convenience store. The hotel, used car dealership and offices were demolished in August of 2002. The 7-11 convenience store is the only structure on site and is still in operation. The request before the Commission involves the abandonment of a 12-foot wide east/west water easement lying within the south 6-feet of Lot 3 and the north 6-feet of Lot 4, Blank-Nichols Subdivision. The 12' wide water easement was created through an easement deed (ORB 6700, PG 267) recorded in January of 1991 between the former Dennis Fronrath Car Dealership and the City of Delray Beach in order to service a fire hydrant located on S.E. 6th Avenue. At its meeting of August 28, 2002, the Site Plan Review and Appearance Board granted site plan approval for a mixed-use (residential and offices) development on the subject property. According to the site plan, the fire hydrant will be relocated and the water line removed. In conjunction with this abandonment request is the Final Plat Approval for the Meridian. The plat currently before the Commission is required for developments which will be dedicating easements and aggregating lots; and was listed as a condition of approval by SPRAB. Abandonment Analysis: Pursuant to LDR Section 2.4.6 (P) (5) (Public Easement Abandonment Findings) the following finding must be made prior the City Commission granting an abandonment: That the abandonment will not result in the detriment for the provision of utility services to the adjacent properties or the general area. The City's Environmental Services Department (water & sewer service) has identified a 6" water main located within the abandonment area. A fire hydrant, located on the east side of S.E. 6th Avenue (Northbound Federal Highway) is the only connection to this water main. As part of the Meridian City Commission Documentation Meeting of December 3, 2002 Meridian Plat Page 2 development, the existing fire hydrant will be removed and relocated to the project's main entrance on S.E. 6th Avenue and a new easement dedicated as part of the plat. Therefore, the existing water easement is no longer needed. The developer has agreed to provide replacement easements which will be handled on the plat. Utility Notification letters were sent to all utility service providers requesting comments for the easement abandonment. Florida Power & Light, ^delphia Cable, Florida Public Utilities Co. (gas) and BellSouth have reviewed the request and have no objection. Plat Analysis: Pursuant to LDR Section 3.1.1, prior to approval of development applications, certain findings must be made in a form which is part of the official record. This may be achieved through information in the application, the staff report, or minutes. Findings shall be made by the Board to approve or deny the development application. These findings re/ate to Future Land Use Map Consistency, Concurrency and Consistency with the Comprehensive Plan, and Compliance with the Land Development Regulations. The property has a Future Land Use Map designation of CC (Commercial Core) and is zoned CBD (Central Business District). Within the CBD zone district, residential projects with a density of up to 30 units per acre are a permitted use. The proposed 22 unit mixed use development represents a density of 11.30 units per acre, thereby meeting this requirement. The addition of 22 mixed-use units will have a minimal impact on water and sewer demands, traffic and solid waste as it relates to their level of service standards. Water service will be provided by extending an 8" main from S.E. 3rd Street along the east side of the building (within the parking area), which will create a loop to an existing 12" water main along S.E. 4th Street. Sewer service will be provided to the site via service lateral connections to a proposed 8" sewer main within the parking area which will connect to an existing 8" sewer main along the east side of the property. Water and Sewer mains will be covered on the plat by a water and sewer easement. Drainage will be accommodated on site via an exfiltration trench system, with an outflow to the City's drainage system on SE 3rd Street. Since this is a private drainage system, drainage easements will not be necessary. No internal street system is proposed with this development as all residents and tenants will take direct access from either S.E. 3rd Street, S.E. 4th Street or S.E. 6th Avenue (Northbound Federal Highway). A park impact fee of $500 for each unit will be collected prior to the issuance of a building permit. A total fee of $11,000 will be required of this development for parks and recreation purposes. Pursuant to LDR Section 3.2.3 (Standards for Site Plan and/or Plat Actions) shall be the basis upon which a finding of overall consistency is to be made. As described in Appendix "A", a positive finding with respect to consistency can be made as it relates to Standards for Plat Actions. Based upon the above, positive findings with respect to Future Land Use Map Consistency, Concurrency and Consistency with the Comprehensive Plan, and Compliance with the Land Development Regulations can be made. City Commission Documentation Meeting of December 3, 2002 Meridian Plat Page 3 By motion, approve the abandonment of the 12-foot wide water easement lying within the south 6-feet of Lot 3 and the north 6-feet of Lot 4, Blank-Nichols Subdivision (PB 13, PG 28), based upon positive findings with respect to LDR Section 2.4.6(P)(5), and approve the preliminary plat of Meridian and certify the final plat based upon positive findings with respect to Section 3.1.1, Section 3.2.3 and Objectives and Policies of the Comprehensive Plan. Attachments: · Appendix A · Location Map · Abandonment Resolution · Description & Survey of Abandonment Area · Reduced Surveyand Reduced Plat · Reduced Site Plan S:~ P&Z~boards~city commission\Meridian Plat-CCdoc City Commission Documentation Meeting of December 3, 2002 Meridian Plat Page 4 STANDARDS F AC TIQ~i~ S A. Building design, landscaping, and lighting (glare) shall be such that they do not create unwarranted distractions or blockage of visibility as it pertains to traffic circulation. Not applicable Meets intent of standard Does not meet intent X Separation of different forms of transportation shall be encouraged. This includes pedestrians, bicyclists, and vehicles in a manner consistent with policies found under Objectives D-1 and D-2 of the Transportation Element. Not applicable Meets intent of standard Does not meet intent X C. Open space enhancements as described in Policies found under Objective B-1 of the Open Space and Recreation Element are appropriately addressed. Not applicable X Meets intent of standard Does not meet intent D. The City shall evaluate the effect that any street widening or traffic circulation modification may have upon an existing neighborhood. If it is determined that the widening or modification will be detrimental and result in a degradation of the neighborhood, the project shall not be permitted. Not applicable X Meets intent of standard Does not meet intent E. Development of vacant land which is zoned for residential purposes shall be planned in a manner which is consistent with adjacent development regardless of zoning designations. Not applicable Meets intent of standard Does not meet intent X Vacant property shall be developed in a manner so that the future use and intensity are appropriate in terms of soil, topographic, and other applicable physical considerations; complementary to adjacent land uses; and fulfills remaining land use needs. City Commission Documentation Meeting of December 3, 2002 Meridian Plat Page 5 Not applicable Meets intent of standard Does not meet intent X G. Redevelopment and the development of new land shall result in the provision of a variety of housing types which shall continue to accommodate the diverse makeup of the City's demographic profile, and meet the housing needs identified in the Housing Element. This shall be accomplished through the implementation of policies under Objective B-2 of the Housing Element. Not applicable Meets intent of standard Does not meet intent X H. The City shall consider the effect that the proposal will have on the stability of nearby neighborhoods. Factors such as noise, odors, dust, traffic volumes and circulation patterns shall be reviewed in terms of their potential to negatively impact the safety, habitability and stability of residential areas. If it is determined that a proposed development will result in a degradation of any neighborhood, the project shall be modified accordingly or denied. Not applicable Meets intent of standard Does not meet intent X Development shall not be approved if traffic associated with such development would create a new high accident location, or exacerbate an existing situation causing it to become a high accident location, without such development taking actions to remedy the accident situation. Not applicable Meets intent of standard Does not meet intent X J. Tot lots and recreational areas, serving children from toddler to teens, shall be a feature of all new housing developments as part of the design to accommodate households having a range of ages. This requirement may be waived or modified for residential developments located in the downtown area, and for infill projects having fewer than 25 units. Not applicable X Meets intent of standard Does not meet intent I~/ Ill ~ I I I I I I I II~J ATLANTIO AVENUE S E 1ST ST FIDELITY FEDERAL BANK 'l 2ND 3RD 4TH DELRA Y BEA CH WOMEN'S CLUB ST SE ST ST 0 WATER II i -tARBOUR CONDO WA TERWA Y EAST COMMERCIAL CONDO MIRAMAR SEA GA TE TO WERS Ls EAGATE I CASUARINA RD I MANOR I r I ! I I~.('--I I J t N CITY OF DELRAY BEACH, FL PLANNING & ZONINGDEPARTMENT · ----- MERIDIAN PLAT .----. IN ASSOCIATION WITH THE ABANDONMENT OF A 12' WIDE EAST-WEST WATER EASEMENT (BLOCK 120, BLANK-NICHOLS SUBDIVISION) -- DIGITAL BASE MAP SYSTEM -- RESOLUTION NO. 84-02 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, VACATING AND ABANDONING A A 12-FOOT WIDE WATER EASEMENT LYING WITHIN A PORTION OF LOT 3 AND LOT 4 OF BLANK-NICHOLS SUBDIVISION (PB 13, PG 28), AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A". WHEREAS, the City of De[ray Beach, Florida, received an application for abandonment of a 12 foot wide water easement lying wxthm a pomon of Lot 3 and Lot 4 of Blank-Nichols Sub&vision (PB 13, PG 28), as more particularly described in Exhibit "A"; smd Blank-Nichols Subdimsxon being located on the southeast corner of S.E. 6th Avenue (Northbound Federal Htghway) and S.E. 3~d Street; and WHEREAS, the application for abandonment of said easement was processed pursuant to Section 2.4.6(P), "Abandonment of Public Easements", of the Land Development Regulations of the City of Delray Beach, Florida; and WHEREAS, pursuant to LDR Section 2.4.6(P)(3)(c), the application was forwarded to the City Commission with the recommendation that the abandonment be approved, based upon positive findings; and WHEREAS, the City Commission of the City of Delray Beach, Florida, pursuant to LDR Section 2.4.6(P)(5), finds that the abandonment will not result m detriment for the provision of utility services to adjacent properttes or the general area, that ~ts interest m the described property is no longer needed for the pubhc good and deems it to be m the best interest of the City of Delray Beach to vacate and abandon said easement, as more parttcularly described m Exbabit "A". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the foregoing recitals are hereby incorporated herein by this reference. Section 2. That pursuant to Chapter 177 and Chapter 166 of the Florida Statutes, it is hereby determined to vacate and abandon all right and interest it holds to the following real property, more parttcularly described as follows: See Exhibit "A" PASSED AND ADOPTED in regular session on this the __ day of 2002. ATTEST: MAYOR City Clerk EXHIBIT "A" LAND DESCRIPTION 12' WATER EASEMENT TO BE ABANDONED A portion of Lot 3 and Lot 4, Block 120, BLANK-NICHOLS SUBDIVISION, according to the plat thereof, recorded in Plat Book 13, Page 28 of the Public Records of Palm Beach County, Florida, being more particularly described as follows: The South 6.00 feet, as measured at right angles, of said Lot 3, less the west 5.00 feet thereof; TOGETHER WITH: The North 6.00 feet, as measured at dght angles, of said Lot 4, less the West 5.00 feet thereof; Same being that certain 12 foot Water Easement described in Official Records Book 6700, Page 267of said Public Records, less the West 5.00 feet thereof. Said lands lying in the City of Delray Beach, Palm Beach County, Flodda, containing 1560 square feet, more or less. Land Description Prepared By: SHAH, DROTOS & ASSOCIATES 1835 South Perimeter Road, Suite 190 Fort Lauderdale, Florida 33309 Prepared by: MDR Checked by: MDR Project No.: 01-0557B File Name: 0557B.WATER.EASEMENT. WPD May 20, 2002 Sheet 1 of 2 Sheets SKETCH OF DESCRIPTION 12' WATER EASEMENT TO BE ABANDONED LOTS5 AND 4-BLOCK 120-BLANK-NICHOLS SUBDIVISION (PB 13, PG 28, PBCR) ~'-SOUTH RIGJ-rr-OF-WAY UNE 1 24 2 23 5' ADDmONN. RIGHT-OF-WAY ~ . ,~,_~ ~ ~ ~PB 15, PG 2B NORTH UNE OF .. ~' OF BLOCK 120 16' ALLEY ~DB .352, PG 584 DB 550, PG 282 PROFESSIONAL SURVEYOR AND MAPPER PROJECT NO:. 01--0557B FLORIDA REGtS':'rRATION NO. ~998 SHEET 2 OF 2 SHEE.'[S ~ SURVEYOR ANO MN'PER TH~ ~ IS FOR INFORt~TIONN. PtlRPtI~J~ ONlY AND IS NOT VALID ~ A s $ 0 c I A T E S PLANNING CERTIFICATE OF AUTHORIZATION NO. LB 64*56 SKETCH OF DESCRIPTION MDR 05/20/02, MDR 18~5 S. Perimeter Rood · Suite 190e FI. l_¢=uderd,fle, FI. 35309 REVISIONS DWN DATE FB/PG CHKD PH: 954-776-7604 · FAX: 954-776-7608 o,-, z .~o, "~ Zn,-OU.i o -~,,. o .g,., -'r- <~ c~... '"" "r'   ,LUn:Z: On ~ ~;-.~ 0 LU _---0~- ~_~ ~1--00>-(~0 m~zo~ §,~o z TO: THRU: FROM: SUBJECT: ABANDONMENT OF A 6-FOOT WIDE UTILITY EASEMENT WITHIN THE PLAT OF SABAL LAKES PHASE THREE, LOCATED EAST OF BARWICK ROAD AND NORTH OF THE L-31 CANAL. The request involves abandoning a 6-foot utility easement located within Lots 42 thru 66 and Tract "F" of the plat of Sabal Lakes Phase Three (Plat Book 72, Page 180). The easement is offset 20-feet from the rear lot line of all above referenced lots. The subject easement was dedicated with the recordation of the plat in June of 1994. The dedication language for this easement gives permission to any public or private utility, such as but not limited to, storm drainage, sanitary sewer, electric power, water service, gas service, and telephone lines. All major utility companies were notified, and indicated they did not have facilities located in the subject area. As its meeting of January 8, 2002, the City Commission approved a similar abandonment of easement request located to the north within Lots 92-102, 104-109, 111-124 and Tract "AE-I" of this same plat. The abandonment request was submitted by Mr. Rob Martin, the owner of Lot 65, in order to facilitate the construction of a patio, and was limited to the portion of the utility easement to the rear of his property. During the standard review by the Development Services Management Group (DSMG), it was suggested that the abandonment request be expanded to include the entire utility easement on multiple lots. Pursuant to LDR Section 2.4.6 (P) (5) the following finding must be made prior the City Commission granting an abandonment: The abandonment will not result in the detriment for the provision of utility services to the adjacent properties or the general area. As mentioned previously, no utilities were located within the proposed abandonment area. The City's Environmental Services Department (water & sewer service), Florida Public Utilities Company (gas service), Florida Power & Light, BellSouth, and Adelphia Cable have reviewed the request and have no objection to the abandonment. By motion, approve the abandonment of the 6-foot wide utility easement located within Lots 42 thru 66 and Tract "F" of the plat of Sabal Lakes Phase Three (Plat Book 72, Page 180), based upon positive findings with respect to LDR Section 2.4.6(P)(5). Attachment. Abandonment Resolution · Location Map · Reduced Plat Map S:\boards\citycommission\SabaI-Lakes-e-Aban-Martin.doc RESOLUTION NO. 95-02 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, VACATING AND ABANDONING A 6- FOOT WIDE UTILITY EASEMENT WITHIN THE SABAL LAKES PHASE THREE DEVELOPMENT, LOCATED EAST OF BARWICK ROAD, NORTH OF CANAL L-31, AS MORE PARTICULARLY DESCRIBED HEREIN. WHEREAS, the City of Delray Beach, Florida, received an application for abandonment of a 6 foot wide utility easement lying within Lots 42 thru 66 and Tract "F", Sabal Lakes Phase Three (Plat Book 72, Page 180), as more particularly described herein; said Sabal Lakes Phase Three being located east of Barwick Road, North of Canal L-31; and WHEREAS, the application for abandonment of said easement was processed pursuant to Section 2.4.6(P), "Abandonment of Public Easements", of the Land Development Regulations of the City of Delray Beach, Florida; and WHEREAS, pursuant to LDR Section 2.4.6(P)(3)(c), the application was forwarded to the City Commission with the recommendation that the abandonment be approved, based upon positive findings; and WHEREAS, the City Commission of the City of Delray Beach, Florida, pursuant to LDR Section 2.4.6(P)(5), finds that the abandonment will not result in detriment for the provision of utility services to adjacent properties or the general area, that its interest in the described property is no longer needed for the public good and deems it to be in the best interest of the City of Delray Beach to vacate and abandon said easement, as more particularly described herein. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: reference. Section 1. That the foregoing recitals are hereby incorporated herein by this Statutes, it is real property, Section 2. That pursuant to Chapter 177.101(5) and Chapter 166 of the Florida hereby determined to vacate and abandon all right and interest it holds to the following more particularly described as follows: THE 6-FOOT WIDE UTILITY EASEMENT LOCATED 20 FEET FROM THE REAR PROPERTY LINE, WITHIN LOTS 42 THRU 66 AND TRACT "F", OF THE PLAT OF SABAL LAKES PHASE THREE, AS RECORDED IN PLAT BOOK 72, PAGE 180, OF THE PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA. PASSED AND ADOPTED in regular session on this the __ day of .,2002. A'I-rEST: MAYOR City Clerk LEAF COURT SUNRISE BLVD. O PALM RIDGE BLVD. SABAL BANYAN CREEK ELEMEN TAR Y SCHOOL 133 ROAD SOUTH LAURELWOOD SABAL SEA GRAPE TRACT W-1 SEA GRAPE CIRCLE CANAL L-51 NW 10TH lOTH ST P~uVNIN~. -- DI¢Ii'AL BASE klAP SYSI'EM -- ABANDONMENT OF UTILITY EASEMENT SABAL LAKES PHASE THREE (P.B. 72, P.G 180) MAP REF LM663 ~® MEMORANDUM TC~. FROM: SUBJECT: DATE: MAYOR AND CITY CIDMMISSIONERS CITY MANAGER~ AGENDA ITEM ~'~- REGULAR. MEETING OF DECEMBER 3, 2002 RESOLUTION NO. 96-02 NOVEMBER 27, 2002 This is a resolution assessing costs for abatement action required for the demolition of an unsafe structure located at 234 SW 10~h Avenue. The resolution sets forth the actual costs incurred and provides the mechanism to attach a lien against the property in the event the assessment remains unpaid. Recommend approval of Resolution No. 96-02. Agmemo. Res.No.96-02DEMO RESOLUTION NO. 96-02 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, PURSUANT TO ARTICLE 7.8, "UNSAFE BUILDINGS", OF THE LAND DEVELOPMENT REGULATIONS OF THE CITY OF DELRAY BEACH, ASSESSING COSTS FOR ABATEMENT ACTION REGARDING AN UNSAFE BUILDING ON LAND(S) LOCATED WITHIN THE CITY OF DELRAY BEACH; SETTING OUT ACTUAL COSTS INCURRED BY THE CITY TO ACCOMPLISH SUCH ABATEMENT AND LEVYING THE COST OF SUCH ACTION; PROVIDING FOR AN EFFECTIVE DATE AND FOR A DUE DATE AND INTEREST ASSESSMENTS; PROVIDING FOR THE RECORDING OF THIS RESOLUTION, AND DECLARING SAID LEVY TO BE A LIEN UPON THE SUBJECT PROPERTY FOR UNPAID ASSESSMENTS; PROVIDING FOR THE MAILING OF NOTICE. WHEREAS, the Building Official or his designated representative has, pursuant to Article 7.8 of the Land Development Regulations, declared the existence of an unsafe building upon certain lots or parcels of land, described in the list attached hereto and made a part hereof, for violation of the building codes and building requirements adopted by Article 7.8 and those Codes adopted in Chapter 96 of the Code of Ordinances; and, WHEREAS, pursuant to Article 7.8 of the Land Development Regulations of the City of Delray Beach, the Building Official or his designated representative has inspected said land(s) and has determined that an unsafe building existed in accordance with the standards set forth in Article 7.8 and/or Chapter 96 of the Code of Ordinances, and did furnish the respective owner(s) of the land(s) described in the attached list with written notice of unsafe building and detailed report of conditions and notice to vacate as the Building Official determined that the building was manifestly unsafe and is considered a hazard to life and public welfare pursuant to Article 7.8 of the Land Development Regulations, describing the nature of the violations and sent notices that the building was to be vacated and that the building was to be repaired or demolished; work must be begun within sixty (60) days and all work must be completed within such time as the Building Official determines, said notice also advised that all appeals must be filed within thirty (30) days from the date of service of the notice and failure to file an appeal or to make the repairs required that the Building Official would have the authority to have the building demolished from the date of the said notice; and, WHEREAS, all the notice requirements contained within Article 7.8 have been complied with; and, WHEREAS, neither an appeal to the Board of Construction Appeals or corrective action was undertaken in accordance with the order of the Chief Building Official; therefore pursuant to Article 7.8 of the Land Development Regulations the Building Official caused the abatement action to be done; and, WHEREAS, the City Manager of the City of Delray Beach has, pursuant to Section 7.8.11 of the Land Development Regulations of the City of Delray Beach, submitted to the City Commission a report of the costs incurred in abating said condition as aforesaid, said report indicating the costs per parcel of land involved; and, WHEREAS, the City Commission of the City of Delray Beach, pursuant to Article 7.8 of the Land Development Regulations desires to assess the cost of said condition against said property owner(s). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELP~AY BEACH, FLORIDA, AS FOLLOWS: Section 1. That assessments in the amount of as shown by the report of the City Manager of the City of Delray a copy of which is attached hereto and made a part hereof, are hereby levied against the parcel(s) of land described in said report and in the amount(s) indicated thereon. Said assessments so levied shall, if not paid within thirty (30) days after mailin9 of the notice described in Section 7.8.11 become a lien upon the respective lots and parcel(s) of land described in said report, of the same nature and to the same extent as the lien for general city taxes and shall be collectible in the same manner and with the same penalties and under the same provisions as to sale and foreclosure as City taxes are collectible. Section 2. That such assessments shall be legal, valid and bindin9 obligations upon the property against which said assessments are levied. Section 3. That the City Clerk of the City of Delray Beach is hereby directed to immediately mail by certified mail, postage prepaid, return receipt requested, to the owner(s) of the property, as such ownership appears upon the records of the County Tax Assessor, notice(s) that the City Commission of the City of Delray Beach has levied an assessment against said property for the cost of abatement action regardin9 an unsafe building by the thirty (30) days after the mailing date of said notice of assessment, after which a lien shall be placed on said property, and interest will accrue at Res. No. 96-02 the rate of six percent (6%) per annum, plus reasonable attorney's fees and other costs of collecting said sums. Section 4. That this resolution shall become effective thirty (30) days from the date of adoption and the assessment(s) contained herein shall become due and payable thirty (30) days after the mailin9 date of the notice of said assessment(s), after which a lien shall be placed on said property(s), and interest shall accrue at the rate of six percent (6%) per annum plus reasonable attorney's fee and other costs of collection. Section 5. That in the event that payment has not been received by the City Clerk within thirty (30) days after the mailing date of the notice of assessment, the City Clerk is hereby directed to record a certified copy of this resolution in the public records of Palm Beach County, Florida, and upon the date and time of recordin9 of the certified copy of this resolution a lien shall become effective on the subject property which shall secure the cost of abatement, interest at the rate of 6%, and collection costs including a reasonable attorney's fee. PASSED AND ADOPTED in regular session on this the , 2002. day of ATTEST: MAYOR City Clerk Res. No. 96-02 CITY OF DELRAY BEACH UNSAFE BUILDING/STRUCTURE NOTICE OF ASSESSMENT TO: JE AND CARRIE L. TIGGETT MAILING ADDRESS: PROPERTY ADDRESS: 316 NW 7th AVE, POMPANO BEACH, FL 33060 234 l0th AVENUE, DELRAY BEACH, FL 33444 LEGAL DESCRIPTION: LOTS 20 AND 21, BLOCK 10, ATLANTIC GARDENS DELRAY ACCORDING TO PLAT BOOK 14, PAGE 63 OF THE OFFICIAL RECORDS OF PALM BEACH COUNTY, FL You, as the record owner, of, or holder of an interest in, the above described property are hereby advised that a cost of $ 3~073.25 by resolution of the City Commission of the City of Delray Beach, Florida, dated ,2002 has been levied against the above described property. The costs were incurred as a result of an abatement action regarding the above described property. You were given notice on April 15~ 2002 that the Chief Building official had determined that a building/structure located on the above described property was unsafe. You were advised in that notice of the action that would be taken to remedy that unsafe condition and that the action would be initiated by the city if you failed to act. __X You failed to appeal the decision of the chief Building Official to the Board of Construction Appeals although you were informed of your right to an appeal and of the procedures for obtaining an appeal. You have also failed to take the corrective action required in the Notice of Unsafe Building/Structure. You appealed the decision of the Chief Building official to the Board of Construction Appeals. You were given written notification on the decision of the Board of Construction Appeals within a stated period of time. You failed to take the action as required by the order of the Board of Construction Appeals. You appealed the decision of the Chief Building official to the Board of Construction Appeals. You were given written notification on the decision of the Board of Construction Appeals within a stated period of time. You failed to take the action as required by the order of the Board of Construction Appeals. You appealed the decision of the Chief Building Official to the Board of Construction Appeals on The Board of Construction upheld the decision of the Chief Building Official. Res. No. 96-02 The City of Delray Beach has therefore taken remedial action to remove the unsafe condition existing on the above described property on November 14~ 2002 at a cost of $ 3~073.25 which includes a ten percent (10%) administrative fee. If you fail to pay this cost within thirty (30) days, that cost plus additional administrative and recording costs shall be recorded in the official Records of Palm Beach County, Florida against the above described property. THE CITY MAY ENFORCE THE ASSESSMENT BY EITHER AN ACTION AT LAW OR FORECLOSURE OF THE LIEN, WHICH SHALL BE FORECLOSED IN THE SAME MANNER AS MORTGAGES ARE FORECLOSED UNDER STATE LAW. IN EITHER TYPE OF ACTION, THE CITY SHALL BE ENTITLED TO INTEREST AT THE RATE OF 8% FROM THE DATE OF ASSESSMENT, COLLECTION COSTS, AND REASONABLE ATTORNEY'S FEES. SUCH LIENS SHALL BE ON A PARITY WITH GENERAL CITY TAXES AND SHALL HAVE PRIORITY OVER ALL OTHER LIENS AND ENCUMBRANCES, INCLUDING MORTGAGES. Copies of all notices referred to in this notice are available in the office of the Chief Building Official. BY ORDER OF THE CITY COMMISSION City Clerk Res. No. 96-02 5 MEMORANDUM TO: FROM: SUBJECT: DATE: MAYOR AND CITY COMMISSIONERS CITY MANAGER ~/1 AGENDA ITEM# ~-~ - REGULAR MEETING OF DECEMBER 3, 2002 RECTRAC SOFTWARE NOVEMBER 27, 2002 This is before Commission to approve the purchase of the RecTrac comprehensive software in the mount of $46,625.00 for the City of Delray Beach Parks and Recreation Department Out of School Program. The RecTrac software will enable the Parks and Recreation Department to create a one step entry for all activities and registration with a single receipt, synchronizing payments at all six (6) sites with a link to the AS 400; provide for on-line registration with credit card payments; and generate monthly reports for activities/attendance. Recommend approval of the purchase of the RecTrac Software. S:\Ctty Clerk\chevelle folder\agenda memos\RecTrac.12.3.02 Memorandum To: Through: From: Date: Subject: David Harden, C4ty Manager Joe Weldon, i~rector of Parks and Recreation Alberta Gaum-Rickard, Accounting Assistant November 18, 2002 Parks and Recreation Comprehensive Software We are submitting for your review our recommendation for the installation of a computer software system enabling the Parks and Recreation Department to synchronize payments and registration at all six remote sites with a link to the AS400 The Parks & Recreation Department has been using Microsoft Access for all data entry including the entry of cash receipts. The current system does not have the internal controls to prevent data entry error and has a very limited report capability. It also does not automatically interface with the City's current financial system. The Out of School Program has several reports (attendance records, homework assistance, etc.) that are required to be submitted at specific times to the Children's Services Council in order for us to comply with our contract. All these reports are prepared manually. Currently, the Recreation Leader must enter the counts and cash receipts twice, once manually and then in the data base A new comprehensive computer software package includes separate modules which interact with each other to create a one step entry for all activities and registration with a single receipt. The software will enable a photo image during registration and visual reference during check-in, process cash receipts, generate financial and programmatic reports, interface with the City's financial software and provide much more extensive program information which will enable better program management. The software package will also give the Parks and Recreation Department capability to do on-line registration with credit card authorization. The Photo ID System will increase the accuracy of reporting the daily attendance of the Out of School Program, (after school, one day camps, holiday camps and summer camp) by allowing the Recreation Leader to swipe a picture ID card which automatically registers the attendance of each child. A daily, weekly or monthly report will generate the names and total of children attending camps. A monthly capacity report is required by Children's Services Council. The "505" Teen Center, Pompey Pool and Delray Swim Club will utilize the photo ID system for memberships, equipment usage and security (liability release form) minimizing the use of cash at each site A review of each vendor's proposal was evaluated by Milena Walinski, Assistant Finance Director, Lisa Hartmann, Accountant II, and Crreg Welch, MIS Project Manager. Attached are their recommendations. Proposals and quotes were demonstrated by three vendors' RecTrac by Vermont Systems, Inc., RecWare by The Active Network, Inc. and Class Software Solution. All three systems are compatible with HTE and all require an annual maintenance fee which includes additional upgrades and training. The base multi-user software license fee includes five users and is included in the cost (see attached cost comparison). Additional users may be added for an additional cost. We recommend ten users at seven sites: Community Center, Ocean Rescue, Veterans Park, Teen Center, Pompey Park, Pompey Pool and Delray Swim Club. RecTrac by Vermont System, Inc. is recommended because the initial cost plus additions to the system (i.e. modules and users) are the best value. There are several local users of RecTrac in Palm Beach County providing additional resource support. Additionally, training costs are reduced by sharing RecTrac's training fees and travel costs with the other users in our area RecWare and Class users are located mostly on the West Coast. This recommendation is based on the following: 1. RecTrac is capable of importing existing information (i.e. names, addresses, etc.) from our present data base to their system. This is not possible with the other two products. RecWare was uncertain and Class recommended starting with a new data base requiring inputting all existing information over again. 2 Both RecTrac and Class Solutions, Inc. do not charge for additional users during peak times. RecWare's software will become inaccessible, if the maximum users exceed the contracted amount. 3. RecTrac does not restrict the number of users present at training sessions per module. Training for the new system was not emphasized by Class which is probably the reason users from other cities in Florida found it complicated to use. Also, on-site training was a $1,000 a day for five participants. RecWare offers only seven days of on- site training for the complete program. All offered training through the internet for upgrades and additional support. 4. Initially, RecTrac's system appeared to be more difficult to use because on their demonstration screen all the various modules were displayed. Further investigation confirms that access to specific screens is available to assigned users creating a more user friendly system with increased security. RecWare is "user friendly" but does not provide the same level of security desired. Class, while "user friendly", has too many different windows to access in order to retrieve necessary information easily and efficiently. 2 5. All three vendors provided lists of current customers as references which were contacted for feedback from users of their product. Three to six customers of each vendor were contacted regarding their experience and satisfaction with the program. RecTrac was rated extremely high on customer support and overall satisfaction. RecWare, overall, had a negative response from the users. Cla£s used the internet for their customer support although some responses indicated that there were training problems in the initial customer training provided. Overall, RecTrac had the highest satisfaction level based upon their customer's responses. A list of responses from the FRPA web site along with the names and responses of contacted references is attached. If approved, the total time for the installation of the RecTrac software is estimated to be six months. RecTrac recommends three separate weeks of on-site trainings. At the first training, they will set up and install the RecTrac workgroup software, review our specifications and end with training for the users. At the second training, RecTrac will follow up with the staff, reviewing problems and correcting any errors, and provide training for additional users. The third training (1-4 days) is for the installation and training of WebTrac, internet software for on-line registration and credit card payments. Funding for the purchase of this comprehensive software system is available from the After School rotary account # 115-0000-248-80.00. If you have'any questions, please call me at ext. 7136. CITY OF DELRAY BEACH PARKS AND RECREATION DEPARTMENT COMPREHENSIVE SOFTWARE PROPOSAL Prepared by Alberta Gaum Budget Technician Parks and Recreation Department 243-7136 TABLE OF CONTENTS Introduction and Proposal ................................................................ Page 1 Cost Comparison ........................................................................... Page 4 Evaluation-Finance Department ........................................................ Page 5 Evaluation-Management Information Systems ...................................... Page 6 References Contacted ..................................................................... Page 7 FRPA Respnses ........................................................................... Page 8 Quotes ...................................................................................... Page 9 9a RecTrac ........................................................................ Page 9 9b Class ........................................................................... Page 9 9c RecWare ....................................................................... Page 9 COST COMPARISON RecTrac RecWare Class Software includes: Program Registration, Facility Booking, and Membership & Pass Management $ 9,734 $11,985 $16,500 Financial Interface-HTE $ 1,500 N/A $ 2,000 Online Registrations $ 9,300 N/A $10,000 Payment Processing $ 750 N/A $ 2,500 Photo/Plastic ID Card System* $ 6,775 $ 5,133 $ 3,068 Safari Core System** N/A $ 9,995 N/A Training & Support $10,830 $10,750 $21,000 Annual Maintenance $ 4,126 $ 5,091 $ 7,750 Subtotal (quotes for five users) $43,015 $42,954 $62,818 Additional recommended five users*** $ 1,500 $ 5,000 N/A Annual Maintenance (additional users) $ 150 N/A N/A Subtotal $44,665 Bar Code Reader/Decoder (3)**** $ 960 Total $47,954 N/A $45,625 $47,954 $62,818 N/A $62,818 RecTrac's quote includes printer, cameras, ID card supplies and 1't year maintenance. Also, they are responsible for all accessories purchased RecWare's quote includes the same as RecTrac but the Photo ID system is purchased through a third party. Class's quote does not include software needed to implement the Photo ID card system. Also, the printer and supplies are purchased through a third party. This is the base product required by RecWare allowing individual applications (i.e. Activity Registration, Facility Registration, etc.) to be added to the database. Class representative would not quote a price for an additional user. Five Bar Code Reader/Decoders are recommended for the follo~ving sites: Community Center, Pompey Park, Teen Center, Pompey Pool and Delray Sxvim Club. RecTrac includes two decoders in their quote. Utilizing the ID bar code decoder encourages memberships which minimizes the handling of cash. Credit card scanner attachment is available for $150 each (see quote page 9a). 4 MEMORANDUM To' Joseph Weldon, Director of Parks & Recreation From: Thru: Milena Walinski, COFO, Assistant Finance Director Lisa Hartman, Accountant II ~ Joseph M. Saff~ector of Finance S ubj e ct: Parks and Recreation Software Evaluations Date: October 28, 2002 The Parks and Recreation Department is evaluating software programs to be used for the various programs offered by Parks and Recreation. We xvere asked to assess the software based upon our current knowledge of how the cash receipts are currently working and what would be necessary in terms of the financial aspects of the programs from internal control to interfacing with the current financial system. The three software programs evaluated were Vermont Systems RecTrac, RecWare and Class Software Solutions. These programs were presented on three different days with demonstrations provided as to how the programs worked. Vermont Systems RecTrac The Vermont Systems RecTrac was the first software and it had many features that we considered to be very useful. RecTrac can interface with the current HTE system. This is a much more efficient use of staff time. The money being collected can be counted and taken at the original transaction point and a unique receipt generated. Currently, Parks and Recreation staff must verify the money when it is taken in, hand write a receipt, collate the monies and receipts and prepare a Summary Cash Report manually writing the information. This is then put together into a package which must then be recounted and verified by the Parks and Recreation Accounting Assistant. After this point it must go to the cashiers who enter the summary accounting information into the cash receipts of the HTE system and they must also count the money again. Using RecTrac, this redundancy is eliminated. At the delivery point the money is taken in, as the money is taken in, it is automatically coded to the proper account for the correct amount of money and with applicable sales tax if required, a receipt is automatically generated and a cash reconciliation process can be done at the end of each business day. The software will automatically generate an interface with HTE. Cash transactions can be tracked by receipt number, name of the person who generated the transaction, date, time and is always retrievable. The security features allow different levels of authority so that different functions and abilities can be limited so that management can determine who has authority for what functions. For instance, a staff person who takes in funds for the after school program would have access only to that portion of the program. This provides for greater internal 5 controls over the programs. The software also provides various reports including financial reporting that can be tailored to the users needs. The system will allow preset amounts for the various program charges so that date entry errors cannot be made in terms of charging the wrong prices. It will also flag customers who are "cash only." The data entry features allow for information that has already been entered to default to information previously entered. For example, if there are multiple members of a household you can keep adding the members without having to re-enter the address over and over again. This feature helps to eliminate data entry errors. The data entry process did not appear to be overly complex or difficult. The system will also allow a one time printing of the annual marina contracts with the name and boat data entered in. This eliminates the need for writing information on the individual contracts and photocopying them. Another feature that appeared to very good which was not offered by the other vendors was that at peak times, you can have up to twice the number of users you have licenses for without losing the ability to perform the work. For example, when the Summer Camp registration is going on there will be greatly increased usage for a brief duration of time. This helps to save money by not having to purchase a larger number of licenses when they will only be utilized a small percentage of the time. The RecTrac also has internet capabilities which would allow the City the ability to have people be able to register for programs over the Web. It allows for credit card payment and gives the person a receipt. We would have the ability to limit the registrations if necessary. RecTrac also provided a current list of their customers using their software. Based upon the current customer listings, there are several local users. RecWare This software was presented over a telephone conference. There were no handouts that went with it. This software did not seem to fit the needs of the Parks and Recreation Department as well as the previous software. The cash functions of the program appeared to be limited although the program does interface with HTE. The security features appear to be much more limited than the RecTrac. It appeared to be full access, no access or read only. It did not appear that you could allow various levels of access. For example, the supervisor could have full access and correct an error, but you could not allow a staff person a limited amount of access. This would limit your internal controls. It also appears that there are many screens in which data is entered in order to put a customer in the system. Based on the demonstration it appeared that there were seven areas that data entry could be made for a single person or family. This seemed excessive and that it could lead to data entry error. The system lacks the ability to print a once a year contract. It can only print additional information on the receipt. Overall the most serious concern is with the security. The lack of ability to determine the level of access could result in a compromise of internal control. Class Software Solutions The Class Software Solutions was also very functional and had many good features as well. It is compatible with HTE and will generate an interface with the financial system. The program had the ability to designate levels of security and can also flag customers that are "cash only." The data entry portion of the program also appears to be relatively easy like the RecTrac software. Many of the features of RecTrac are also available in Class. However, Class does not allow the organization to exceed the number of licenses that are purchased. So it would be necessary to determine how many licenses are needed at peak periods in order to insure that staff has access to the system. There are also not as many users in the South Florida area. There are various levels of financial reporting available. The actual reporting such as the Daily Cash Balance Report was not demonstrated although a copy of the report was provided in the handouts. The same can be said of the receipts. There was no demonstration of how the receipt process worked nor was a sample provided in the back up information. However, per the hand out the software provides a comprehensive audit including date, time and user transaction stamp. One aspect of the presentation was confusing. It was not clear whether or not there was an internet web access or not. The presentation indicated that there was intemet capability but in the latter part of the presentation, a statement was made which would indicate that some of the internet portion is still under development. This would need to be clarified. There are not as many users in the South Florida area using the Class system software. Overall, it appears that of the three soft ware programs presented that RecTrac or the Class Software would be good choices with regards to the accounting aspects of the Parks and Recreation programs. Based on the presentations and documentation provided, we believe that RecTrac is the better choice. Cc: Alberta Gaum, Accounting Specialist 5b MEMORANDUM To: Thru' From: Joseph Weldon, Director of Parks & Recreation Richard Zuccaro, Management Information Systems Manager Gregory A. Welch, Project Manager ~:~. Subject: Parks & Recreation Software Evaluation Date: CC: 10/31/2002 Joseph Saffo~'~irector of Finance Alberta Gaum, Accounting Assistant Introduction The City of Delray Beach Parks & Recreation Department is evaluating software for managing activities, memberships, and facilities. Three different software products were reviewed in demonstrations given by the vendor. The Finance Department, Management Information Systems division was ask to evaluate the products from a technical standpoint paying close attention to technical specifications for computers, software, security, connectivity, manageability, and usability. Vermont Systems RecTrac Company Overview Including Support Services Vermont Systems has been providing Parks & Recreation software since 1985. We used their RecTrac product at the Delray Tennis Center and have been satisfied with their service and support. Their web site is informative but has no online technical support. The online technical support area is under construction and is scheduled to be completed by the 1st quarter 2003. They have an unpublished FTP site for downloading fixes. Their telephone support is very good. Their software demonstration was informative and the instructor answered all of our questions. Functionality and Usability Including Security The software modules we reviewed seemed to meet our current needs, including a batch interface into HTE GMBA. This interface will save time and money by eliminating our current manua~ procedures for cash collection and reporting. Application security is built into the software utilizing user group and individual user authorizations to specific functions. This seems adequate for our installation. The user interface was intuitive and easy to use. The search criteria used for inquiry was extensive. We were all impressed by the quality and quantity of pre-packaged reports. Reports are written using Seagate Crystal Reports 6 writer, which is an industry standard report writer used by the city in many locations, including Parks & Recreation. Application Design Including Licensing The software uses a centralized Progress Version 8 database and a 4GL Progress client. Although we are not currently using Progress it is multi-platform and has an installation base far greater than many other popular databases. The database and client software should run fine on servers already in production. The client software is compatible with Citrix and is currently being used with Citrix in several locations. Individual client installations should be compatible with existing hardware. RecTrac client licensing is tracked by concurrent usage. RecTrac does not lock users out of the application when license count is exceeded; rather it sends a warning message that can be bypassed. RecTrac software is not modifiable and source code is not provided. Vermont Systems supports open database architecture and will provide their customers with data entity diagrams for writing add-on products and reports. RecTrac integrates with other Vermont Systems application modules to provide internet access, telephone access, ID card system interface, and full point of sale functions. All RecTrac plug-ins are being used in a production environment by other customers. RecTrac also works with 3rd party vendors to control such things as facility lighting. RecTrac has many satisfied customers in this area and even has a users group. Active. Corn Inc. RecWare Company Overview Includihg Support Services Active.Com Inc. has been providing Parks & Recreation software since 1981. Their web site is informative and has full online technical support. Their telephone support is very good. Their software demonstration was a combination of terminal server over the internet and telephone for voice. The instructor had a hard time answering our questions. Product handouts and technical specifications were not distributed to attendees. At one point the instructor had to find another employee to he~p answer questions. Functionality and Usability Including Security The software modules reviewed did not have some of the same capabilities of other products we reviewed. They did have an interface into HTE GMBA but, we would need more clarification into the products implementation before making a final purchasing decision. Application security exists but could not be demonstrated to my full satisfaction. The user interface was intuitive and easy to use but screen space was not utilized to it full potential making data entry more difficult. The search criteria used for inquiry was moderate compared to other products we reviewed. The quality and quantity of pre-packaged reports was moderate and was not demonstrated very well. It appeared we would have to write a lot of our own reports. Reports are written using Seagate Crystal Reports writer, which is an industry standard report writer used by the city in many locations, including Parks & Recreation. Application Design Including Licensing The software uses a centralized Microsoft SQL Server database and a C++ client, which fits well in our current back office environment. The database and client software should run fine on servers already in production. The instructor could not answer questions about Citrix compatibility. Individual client installations should be compatible with existing hardware. RecWare client licensing is tracked by concurrent usage. RecWare locks users out of the application when the license count is exceeded. RecWare software is not modifiable and source code is not provided. No information was provided regarding database architecture. Class Software Solutions Company Overview Including Support Services Class Software Solutions has been providing Parks & Recreation software since 1971. They have 120 employees with offices in Canada and Australia. Their web site is informative and has full online technical support. Their telephone support is very good. Their software demonstration was informative and the instructor answered most of our questions. Functionality and Usability including Security The software modules we reviewed seemed to meet our current needs, including a batch interface into HTE GMBA. The company is currently building application program interfaces to other government applications such as Hansen. Application security is built into the software utilizing user group and individual user authorizations to specific functions. This seems adequate for our installation. The user interface works just like most certified Windows applications. It seemed to be the most comprehensive interface we reviewed. The search criteria used for inquiry was moderate. The quality .and quantity of pre-packaged reports was adequate. Reports are written using Seagate Crystal Reports writer, which is an industry standard report writer used by the city in many locations, including Parks & Recreation. Application Design including Licensing The software uses a centralized Microsoft SQL database and a Visual Basic client, which fits well in our current back office environment. The software was the only product certified by Microsoft. The database and client software should run fine on servers already in production. The ctient software is compatible with Citrix and is currently being used with Citrix in severa~ locations. Individua~ client installations should be compatible with existing hardware. Class client licensing is tracked by concurrent usage. Class locks users out of the application when the license count is exceeded. Class software is not modifiable and source code is not provided. Class has closed database architecture with no access to data entity diagrams for writing add-on products. 6b Class integrates with other Class application modules to provide internet access, telephone access, ID card system interface, and full point of sale functions. Class also works with 3rd party vendors to control such things as facility righting. Conclusion Both Vermont Systems RecTrac and Class seem provide good solutions for the Parks & Recreation department. Class uses a database that we already support, but they have a closed architecture. Classes interface is more Windows friendly but does not have some of the functionality that RecTrac provides. RecTrac has better reporting capabilities built into the application. RecTrac has more customers in this area and is not as expensive. M.I.S believes that either of the two software packages is technically sound and both run on the current industry standard, platform and O/S. Therefore, as it is the user department that must use this software on a day-to-day basis we will defer the final selection of the software to Parks & Recreation department. flOC Date: Nov. 22, 2002 Request to be placed on: AGENDA ITEM NUMBER:~~ AGENDA REQUEST Consent Agenda x Regular Agenda .. Workshop Agenda Special Agenda Vifhen: December ~, 2002 Description of Agenda Item (who, what, where, how much): Request approval to purchase RecTrac comprehensive software for the Parks and Recreation Department in the amount of $46,625. Funding is in the After School rotary account #115-. 0000-248-80.00. The expense will be paid from account #115-~3!-572 ~4.90. Department Head Signature: ~/-~~ ~ City Attorney Reviev~ecommendation (if applicable): Budget Director Review (required on all i.t.e~ns involying expenditure of funds): Funding Available: ~e~ / No I~tials: Funding ~tern~tives: (if opp~c~ble) City Manager Review: ~ov~ ~o~ A~.~: ~ No ~.~: 7~ Hold Until: Agenda Coordinator Review: Received: MEMORANDUM TO: FROM: SUBJECT: DATE: MAYOR AND CITY COMMISSIONERS CITY MANAGER ~~ AGENDA ITEM # ~o \ - REGULAR MEETING OF DECEMBER ~}. 2002 CHANGE ORDER NO, 1/FINAL PAYMENT/G,T.E. BUILDERS, INC, NOVEMBER 27, 2002 This is before the City Commission to approve Change Order No. 1 in the net add amount of $10,887.20, and final payment in the amount of $18,017.01 to G.T.E. Builders, Inc. for Community Teen Center (505) Project. Funding is available from 117-6111-519-63.40 (Recreation Impact Fee/Recreation Improvements), 334-6111-572-62.09 0Delray Youth Teen Council), and 442-5178-536-61.83 (Water/Sewer/Lift Station Rehabilitation). Recommend approval of Change Order No. 1 and final payment to G.T.E. Builders, Inc. S:\City Clerk\cheveile folder\agenda memos\Final Payment. GTE Broiders.12.3.02 City Of Delray Beach Department of Environmental Services M E M 0 R A N D U M TO: FROM: SUBJECT: DATE: DAVID T. HARDEN City Manager VICTOR MAJTENYI -~,/~ Assistant Construction Manager COMMUNITY TEEN CENTER (PN 2000-042) Change Order #1/Final, Final Payment NOVEMBER 21, 2002 www. delrayesd corn Attached for Commission approval is an agenda request for closeout Change Order gl/Final to G.T.E. Builders, Inc. on the Community Teen Center project, PN 00-042. It is for the fmal plus/minus quantity adjustments and miscellaneous changes to the original contract. Change Order gl/Final is in the net add amount of $10,887.20. A request is also made for fmal payment in the amount of $18,017.01 to G.T.E. Builders, Inc. A Contractor Evaluation form is attached for your review. A list of items with a brief description of each is presented below. Design Related Chan~,es RCO1 During the demolition phase, contractor encountered a conflict with the proposed under slab plumbing and an existing roof drain. The roof drain was modified and diverted to accommodate the new layout. RCO4 This item is for installation of audio speaker controls and wiring for future use. RCO5 Modified soffit in main room (Room #1) to accommodate new A/C supply ducts and fur down ceilings in kitchen and bath areas to accommodate new lighting fixtures. RCO6 Demolished and rebuilt east parapet wall (flame construction). Three existing A/C units mounted on the lower roof had supply ducts penetrating this wall. Upon removing the existing A/C units and ductwork, evidence of water and termite damage from leaky connections was significant enough to warrant complete replacement of this wall. RCO7 Removed and replaced rotten and termite damaged paneling, furring strips, and base trim bom office (Room #3). RCO8.1 Electrical revisions to include installing three duplex receptacles to west wall of main room (Room #1) and modify a surface mounted light fixtures in storage room (Rm # 2). RCO9 Additional fill material, grading, and compacting of fill material at new basketball court and rear patio areas for transitioning from proposed slab elevations to existing grade elevations. S.'~Eng,4dmtnLProjects~2000~2000-O42~CONSTRC~col.final mere-12 03. 02 doc Page 1 of 2 RCOIO RCO14 RCO 17 Additional time and material to tie-in new sewer service to existing lateral. Existing lateral was 36' from point shown on plans. Furnish and install new 2" water service to existing meter shown 120LF from plan location. Furnish and install additional sod at basketball and patio perimeter areas where additional fill material was placed and graded. Owner Initiated Changes RCO3 Modified landscape island and extend driveway at lift station to accommodate larger trucks required in servicing the station. RCO8.2 Electrical revisions to include installing a pair of spare 1-1/2" conduits from panel location to handhole at base of power pole for future use, and installation of low voltage wiring for future security and computers. RCO 11 Seal-coating of parking lot. With the reconfiguration of the parking lot and associated parking stalls, the black-out of the existing stripping lines in conjunction with the new stripping would have made the stripping appear very busy. RCO12 Relocate security homerun wires at panel location to inside of adjacent storage closet at owners request, install 110v duplex receptacle for monitoring cabinet and MIS network, and patch/paint drywall. RCO 13 Furnish and install dedicated circuit for proposed fire alarm panel, patch/paim drywall. RCO15 Replace pair of interior double doors to storage closet. RCO16 Paint from brick fagade green to match trim color. Funding is available from the following accounts: 334-6111-572-62.09 Delray Youth Teen Council 442-5178-536-61.83 Water & Sewer/Lift Station Rehab. $7,712.20 (after budget transfer) $3,175.20 $10,887.20 CC: Richard Hasko; Director of ESD Joe Weldon; Director of Parks & Recreation Randal Krejcarek; City Engineer Rafael Ballestero; Dep. Dir, of Construction City Clerk's Office Agenda File 12/03/02 Project File 00-042(A) $: ~Eng~dmm~Projects12000[2000-O421CONSTRC~col final mem-12 03.02 doc Page 2 of 2 CHANGE NO. PROJECT TITLE: TO CONTRACTOR: CITY OF DELRAY BEACH CHANGE ORDER TO ORIGINAL CONTRACT 1/Final PROJECT NO. 00-042 DATE: Community Teen Center GTE Builders YOU ARE HEREBY REQUESTED TO MAKE THE FOLLOWING CHANGES IN THE PLANS AND SPECIFICATIONS FOR THIS PROJECT AND TO PERFORM THE WORK ACCORDINGLY, SUBJECT TO ALL CONTRACT STIPULATIONS AND COVENANTS. JUSTIFICATION Plus/minus quantity adjustments and changes per attached Schedule "A'. SUMMARY OF CONTRACT AMOUNT ORIGINAL CONTRACT AMOUNT COST OF CONSTRUCTION CHANGES PREVIOUSLY ORDERED ADJUSTED CONTRACT AMOUNT PRIOR TO THIS CHANGE ORDER COST OF CONSTRUCTION CHANGES THIS ORDER ADJUSTED CONTRACT AMOUNT INCLUDING THIS CHANGE ORDER PER CENT INCREASE THIS CHANGE ORDER 3.58 % TOTAL PER CENT INCREASE TO DATE 3.58 % $303,472.50 '~' $0.oo $303,472.50 j $10,887.20 $314,359.70 ~ CERTIFIED STATEMENT: I hereby certify that the supporting cost data included is, in my considered opinion, accurate; that the prices quoted are fair and reasonable and in proper ratio to the cost of the original work contracted for under benefit of competitive bidding. GTE Builders (Contractor to sign & seal) TO BE FILLED OUT BY DEPARTMENT INITIATING CHANGE ORDER Funding is available from accounts: 334-6111-572-62.09, Delray Youth Teen Council; 442-5178-536-61.83, Water & Sewer/Lift Station I~eh~lb. DEPARTMENT FUNDING CERTIFIED BY DELRAY BEACH, FLORIDA by its City Commission RECOMMEND: for Environmental Services APPROVED: By: ATTEST: By: Mayor City Attorney City Clerk S'~EngAdminLProjectsk2000~2000-042\CONSTRCT~COgl.Final GTE-12 03 02.doc 0 ~ ,,cl. I C~O0000~O o  o -~ o e,, 0 AGENDA REQUEST Agenda Item No.: ~/~ Request to be placed on: DATE: November 21, 2002 X Regular Agenda Special Agenda Workshop Agenda When: December 3, 2002 Description of item (who, what, where, how much): Approve a request for closeout Change Order #1/Final to GTE Builders on the Community Teen Center project, PN 00-0042. It is for final plus/minus quantity adjustments and miscellaneous changes to the original contract. Change Order #1/Final is a net add in the amount of $10,887.20. A request is also made for final payment in the amount of $18,017.01 to GTE Builders. Y/ Funding is available from account: Funding Source Delray Youth Teen Council * Water & Sewer/Lift Station Rehab. · after budget transfer Account Number 334-6111-572-62.09 442-5178-536-61.83 ORDINANCE/RESOLUTION REQUIRED: YES/NO DRAFT ATTACHED YES/NO Amount $7,712.00 $3,175.20 Recommendation: Staff recommends approval of Change Order #1/Final and final payment to GTE Builders for the construction of..~qprovements to the Community Teen Center, PIN 2000-042. Department Head ~'~/?,'-,~/~" ,~~ Signature: ~,_~)'~ ~ ~_J ~ I I-Z~----* v Determination of Consistency with Comprehensive Plan: City Attorney Review/Recommendation (if applicable) Budget Director Review (required on all it~ems [nvolv, ing expenditure of funds): Funding available ~,/N~ ~ Funding altemative~' " (ifa plicable) Account No. & Description See above Account Balance ~~ ~ 3=~ abuv~ Approved for agenda:Hold Until: C~"-7¢L (~~ Agenda Coordinator Review: Re~ived: Placed on Agenda: Action: Approved/Disapproved file 2000-042(A) projects/2000-042/constrct/agenda req 12.03.02.doc MEMORANDUM TO: FROM: SUBJECT: DATE: MAYOR AND CITY CO~MISSIONERS AGENDA ITEM# ~ k.~. REGULAR MEETING OF DECEMBER $, 2002 CHANGE ORDER NO. 1/FINAL PAYMENT/CORNERSTONE BUSINESSES. INC. NOVEMBER 27, 2002 This is before the City Commission to approve Change Order No. 1 in the net deduct mount of $21,000.00 and final payment in the amount of $33,651.00 to Cornerstone Businesses, Inc. for the Barrier Island 16" ICWW Force Main Crossing Project. Funding is avuihble from 441-5161-536-69.23 (Florida Teleport/Intracoastal) and 441-5181-536- 65.21 (Davis Road/Lone Pine Road). Recommend approval of Change Order No. 1 and final payment to Cornerstone Businesses, Inc. S:\Caty Clerk\chevelle folder\agenda memos\Final Payment. Cornerstone Businesses. 12.3 02 City Of Delray Beach Department of Environmental Services M E M 0 R A N D U M TO: FROM: SUBJECT: DATE: DAVID T. HARDEN City Manager RAFAEL BALLESTERO Deputy Director of Construction Barrier Island 16" ICWW Force Main Crossing (Pn 2001-014) Change Order gl/Final, Final Payment NOVEMBER 20, 2002 www. delrayescL com Attached for Commission approval is an agenda request for closeout Change Order gl/Final to Cornerstone Businesses, Inc. on the Barrier Island 16" ICWW Force Main Crossing project, PN 01-014. It is for the final plus/minus quantity adjustments and miscellaneous changes to the original contract. Change Order gl/Final is a net deduct mount of $21,000.00. A request is also made for final payment in the amount of $33,651.00 to Cornerstone Businesses, Inc. A Contractor Evaluation form is attached for your review. Residual funds to be liquidated from PO#604116 to account # 441-5161-536-69.23 ($21,000.00). Richard Hasko; Director of ESD Randal Krejcamk; City Engineer Victor Majtanyi, Assistant Construction Manager City Clerk's Office Agenda File 10/01/02 Project File 01-014(A) & ~Eng4dmtn ~Projectsl2OO l ~2OO l-O141CONSTRCI~co l finalmem-12 03 02. doc CHANGE NO. PROJECT TITLE: TO CONTRACTOR: CITY OF DELRAY BEACH CHANGE ORDER TO ORIGINAL CONTRACT 1 and Final PROJECT NO. 2001-014 DATE: Barrier Island 16" Force Main Crossing Cornerstone Businesses, Inc. YOU ARE HEREBY REQUESTED TO MAKE THE FOLLOWING CHANGES IN THE PLANS AND SPECIFICATIONS FOR THIS PROJECT AND TO PERFORM THE WORK ACCORDINGLY, SUBJECT TO ALL CONTRACT STIPULATIONS AND COVENANTS. JUSTIFICATION: Final Contract reconciliation, based on the plus/minus quantity adjustments. SUMMARY OF CONTRACT AMOUNT ORIGINAL CONTRACT AMOUNT COST OF CONSTRUCTION CHANGES PREVIOUSLY ORDERED ADJUSTED CONTRACT AMOUNT PRIOR TO THIS CHANGE ORDER COST OF CONSTRUCTION CHANGES THIS ORDER ADJUSTED CONTRACT AMOUNT INCLUDING THIS CHANGE ORDER PER CENT DECREASE THIS CHANGE ORDER 5.87% TOTAL PERCENT DECREASE TO DATE 5.87% $ 357,510.00 $ o.oo $ 357,510.00 $ (21,000.00) $ 336,510.00 CERTIFIED STATEMENT: I hereby certify that the supporting cost data included is, in my considered opinion, accurate; that the prices quoted are fair and reasonable and in proper ratio to the cost of the original work contracted for under benefit of competitive bidding. Cornerstone Businesses, Inc.. (Contractor to sign & seal) TO BE FILLED OUT BY DEPARTMENT INITIATING CHANGE ORDER Funding Source is 441-5161-536-69.23 (Water/Sewer Transmission Main) ~% DELRAY BEACH, FLORIDA by its City Commission RECOMMEND: for Environmental Services APPROVED: By: Mayor ATTEST: By: City Attorney City Clerk Agenda Item No. ~--~-'" Request to be placed on: AGENDA REC~UEST Date: November 20, 2002 --X-Regular Agenda Special Agenda Workshop Agenda When: December 3, 2002 Description of item (who, what, where, how much): Attached for Commission approval is an agenda request for closeout Change Order #1/Final to Cornerstone Businesses, Inc. on the Barrier Island 16" ICWW Force Main Crossing project, PN 01-014. It is for the final plus/minus quantity adjustments and miscellaneous changes to the original contract. Change Order #1/Final is a net deduct in the amount of $21,000.00. A request is also made for final payment in the amount of $33,651.00 to Cornerstone Businesses, Inc. Residual funds to be liquidated from PO~604116 to account # 441-5161-536-69.23 ($21,000.00). ORDINANCE/RESOLUTION REQUIRED: Not required. Recommendation: Staff re(xxfl~ends award Cornerstone Businesses, Inc. Department head signature: ~,.~'--~<.<~,~!~,.~ . \ o.~~rder #1/Final and Final Payment to Determination of Consistency with Comprehensive Plan: City Attorney Review/Recommendation if applicable): Budget Director Review (req~ed on all, items involvir~ expen/diture of funds): Funding available: ~E~,~NO Funding altemative~'~f applicab,:le): see a~e Account No. & Description Account Balance City Manager Review: Approved for agenda: E~NO Hold Until: Agenda Coordinator Review: Received: Placed on Agenda: Action: Approved/Disapproved s:~..301-O14~AgReqCO1 closeout 12.03.02 MEMORANDUM TO: FROM: SUBJECT: DATE: MAYOR AND CITY COMMISSIONERS CITY MANAGER ~~ AGENDA ITEM # c3! ~ \-REGULAR MEETING OF DECEMBER 3, 2002 GRANT AWARD FOR HOUSING REHABILITATION CONTRACT November 27, 2002 This is before the Commission to consider approval of the following housing rehabilitation contract: * $21,000.00 to Preston Construction for 329 S.W. 12'~ Avenue Funding for the total amount of $21,000.00 for this grant is available from 118-1963-554-49.19 (SHIP Housing Rehabilitation). Recommend approval of the housing rehabilitation grant award contract as outlined above. S:\C:ty Clerk\chevelle folder\agenda memos\CDBG Housing Rehab Award 12.3.02 City of Delray Beach Community Development Division MEMORANDUM TO: THRU: FROM: DATE: SUBJECT: David T. Harden, City Manager Lula Butler, Director of Community Im~ovement Kendra W. Graham, C.D. Administrator November 21, 2002 Community Development Division Housing Rehabilitation Grant Award ITEM BEFORE CITY COMMISSION Approval is requested for one (1) Housing Rehabilitation grant award to the lowest responsive bidder. This request is in accordance with the City's Community Development Division's approved Policies and Procedures. BACKGROUND The grant awards are based on the actual cost of the rehabihtation, as determined by the low responsive b~dder, plus a 5% contingency. The contingency may be used for change orders and all unused funds will remain w~th the Housing Rehabilitation grant program. Inspection of work is done by the Department of Commumty Improvement' s Building Inspection and Commumty Development D~vision. Contracts are executed between the bmlding contractor and the property owner. The City remains the agent and this office monitors all work performed by the contractor, ensuring comphance accor&ng to specfficat~ons and program guidelines. Pay request forms require both contractor and homeowner's signatures. Grant recipients have met all eligibility requirements as spemfied in the approved Pohcies and Procedures. The rehabihtation actiwties will bring the homes to minimum code requirements by repainng the roof, electric and plumbing systems and correcting other incipient code violations. Detailed work write-ups and ~ndividual case files are available for rewew in the Community Development Division Office. The Community Development D~vision is responsible for ensunng that the housing rehabilitation contracts are awarded to the lowest responsible bidder, as a result of a formal bid process. Therefore, an m-house pohcy was created to hm~t awards to the lowest responsible b~dder as ~t relates to the Division's professional in-house estimate. This serves to disquahfy unreasonably low bids and therefore protect against the resulting change order requests. Th~s pohcy further assists the Division with ~ts goal of completing each rehabilitation actimty utihz~ng the estimated amount of funding required. RECOMMENDATION Staff recommends awarding the bid £or one (1) Housing Rehabilitation project to the verified responsible low bidder and authorize award in the following amount: Case Number Address Contractor Grant Amount 99-029 HR 329 SW 12th Ave. Preston Construction $21,000.00 CITY OF DELRAY BEACH COMMUNITY DEVELOPMENT DIVISION AFFORDABLE HOUSING REHABILITATION PROGRAM BID/QUOTATION INFORMATION SHEET BID/QUOTATION #: 2003-02 SH APPLICANT: Mary Houston PROJECT ADDRESS: 329 SW 12th Avenue DATE OF BID LETTERS: October 24, 2002 DATE OF BID OPENING: November 7~ 2002 NAME OF CONTRACTORS ABISSET CORPORATION CRAFTSMAN PLUS, INC. DAKOTA CONSTRUCTION, INC. HENRY L. HAYWOOD HORIZON ROOFING PRESTON CONSTRUCTION SOUTH FLORIDA CONSTRUCTION WRIGHT'S WAY ROOFING IN-HOUSE ESTIMATE CONTRACTOR AWARDED CONTRACT: AMOUNT OF BIDS $ 21~825.00 $ 19~325.00 $ $ 20~725.00 $ $ 20~000.00 $ 20~195.00 $ $ $ $ 17~961.00 Preston Construction BID/CONTRACT AMOUNT: $20~000 + 5% contineency ($1,000.00) = $21,000 FUNDING SOURCE: CDBG Rehabilitation Program Account No. 118-1963-554-49.19 COMMENTS: Lowest bidder, Craftsman Plus currently has two open jobs. Project awarded to second lowest bidder AGENDA REQUEST Request to be placed on: Regular Agenda Special Agenda __ Workshop Agenda Consent Agenda Date: ~vrhen[ November 21, 2002 December 3, 2002 Description of item (who, what, where, how much): Case Number Address Contractor Grant Amount 00-029 CDBG HR 329 SW 12th Ave. Preston Construction $21,000.00 ORDINANCE / RESOLUTION REQUIED: YES/NO Draft Attached: YES/NO Recommendation: Recommend approval of one (1) Community Development Block Grant (CDBG) Housing Rehabilitation Grant and Contract award from Account 118- 1963-554-49.19 in the total amount of $21,000.00. This grant amount includes a 5% contingency. Department Head Signature: ~'"~~ ~ [ ~'~o-.-~'~ City Attorney Review/Recommendation (if applicable): Budget Director Review (required on all items involving expenditure of funds): Funding available: ~lqO Funding Alternatives: Account No. & Desc. ription: Account Bal~ce: ~ City M~ager Review: Approved for agenda: ~O Hold Until:~ Agenda Coordinator Review: Received: Placed on Agenda: Action: Approved/Disapproved [ITT' DELRI:I¥ 9ER[H DELRAY BEACH ~ 100 N W. lstAVENUE 1993 2001 TO: FROM: SUBJECT: DELRAY BEACH, FLORIDA 33444 David T. Harden, City Manager ~Robert A. Barcinski, Assistant City Manager AGENDA ITEM - DECEMBER 3~ 2002 SPECIAL EVENT REQUEST - DOWNTOWN DELRAY ART FESTIVAL DATE: November 21, 2002 561/243-7000 Action City Commission is requested to endorse the 14t~ Annual Downtown Art Festival sponsored by Howard Alan Events, Ltd. to be held January 18-19, 2003, to grant a temporary use permit per LDR's section 2.4.6(H) for use of city right-of-way, and Vittorio's lot for vendor parking, to authorize staffto apply for the FDOT street closure permit, to authorize staff support for security, traffic control, and to permit an event sign to be erected on Atlantic Avenue just east of 1-95 one week prior to the event. Background Howard Alan Events, LTD. will again be conducting the 14t~ Annual Downtown Arts Festival. This year again, a portion of the proceeds will be given to the Joint Venture. Mr. Alan is requesting closure of Atlantic Avenue, from just east of NE/SE 6th Avenue east to Salina. He is also requesting the use of Veteran's Park for vendor parking and requesting security service from the Police Department. Mr. Alan has indicated that he would rent and install barricades with volunteers; however, because Federal Highway, as well as Atlantic Avenue, will need to be barricaded, I am recommending that City staff install the barricades for safety reason. The estimated overtime cost for City services $3,800. Mr. Alan will pay for these costs as well as provide for trash removal, clean up, and port-a-lets. Signage per LDR's section 4.6.7(D)(3)(j)(i) can be installed one week prior to the event and must be under 20 square feet. We have attached a rough site plan, budget, and hold harmless agreement. This is not a new event and does not exceed the limit established. Recommendation Staff recommends endorsement of the event, granting of the temporary use permit for the street closure and parking lot use as requested, providing staff assistance for traffic control and barricading as recommended, and allowing the event sign to be installed with all overtime costs to be paid by the vendor. The vendor is also required to provide a certificate of liability insurance. RAB:tas cc: Marjorie Ferrer Fde'u sweeney/events Doc'14 ,inn Downtown .4rt Festival Pnnted on Recycled Paper THE EFFORT ALWAYS MATTERS October 23, 2002 Mr. Robert Barcinsld Assistant City Manager City of Delray 100 NW l~t Avenue Delray Beach, FL 33444 A/14Et~ /~-.A '5 FINF__S T Dear Mr. Barcinski: We are planning for the 14a Annual Downtown Delray Art Festival, to be held January 18 - 19, 2003 on Atlantic Avenue starting just east of Federal Highway and going our typical route to Salena. Salena and Andrews will be left open. Please be advised that the following logistics for the 14t~ Annual Downtown Delray Art Festival will be arranged: Street Closure: Bob's Barricades will drop off barricades on Friday, January 17, 2003, and our employees will set them up early Saturday morning. Police: The Delray Police Department will arrange for Police and Sec~dty from 10:00 am - 5:00 pm on Saturday and Sunday, and overnight security on Saturday from 6:00 pm - 6:00 am. Port-O.Lets and Dumpster: 5 regular and 2 handicap portolets have been ordered through Anderson Rentals and will be dropped off on Friday, January 17, 2003 and will be picked up on Monday, January 20, 2003, with servicing on Sunday, January 19, 2003. Two 30-yard rolloff dumpsters are ordered from BFI. They will be dropped off on Friday and picked up on Monday as well. Locations of dumpsters will include municipal spots behind Veterans Park on city street and on Seabreeze as indicated. Trash Receptacles: Trash receptacles will be supplied and maintained by our professional clean- up crew, Profest (Mitch). They will handle clean up of the trash throughout the area each day. Vendor Parking: RV's and large rig vehicles will park in the municipal parking lots just west of the Intracoastal Waterway. Cars and vans will park at Bank of America during the day only. Insurance: City required certificates will be issued, including a $2 million dollar liability policy. As always, we greatly appreciate your great help and time that you put into these events. have any questions, please feel free to call me at (954) 472-3755. /'Howard Alan, President Howard Alan Events, Ltd. If you 9695 W. BROWARD BLVD. · PLANTATION. FLORIDA 33324 (954) 472-3755 ° FAX (954) 472-3891 www. artfesti val. eom HOWARD ALAN EVENTS; 9544723891; Nov-29-01 15:58; AVE. .El AVE. Page 2/2 .... H',':' NO]I)I Howard Alan Events The 13th Annual Delray Art Festival January 19-20, 2002 PROPOSED BUDGET FOR JANUARY 2002 INCOME: Artist Revenue $64,125 Food Vendor Revenue $3,900 Total Revenue $68,026 EXPENSES: Advertisin~l: Boca Raton News Expense $708.50 Palm Beach Post Expense $2,543.57 South Florida Newspaper Expense $715.00 Sun Sentinel Expense $8,274.90 WPEC CHANNEL 12 Expense $7,500.00 Sun Sentinel CharitIes Ad Program Expense $2,$00.00 Advertisin~l SubTotal $22,241.97 Services: Permit ~Palm Beach County Health Expense $25.00 Si~nage 'AA Sign Lines Expense $942.72 Sanitation IWaste Management-portolets Expense $671.00 Samtation - 2 30 yd dumpsters !Waste Management- dumpster Expense $950.00 Sanitation Pro Fest Expense $2,t00.00 Barricades !Bob's Barricades Expense $515.00 City of Delray, O/T barricade set up ICity Of Delray Beach Expense $325.00 Security ~Clty Of Delray Beach Expense $3,983.00 Rentals !Pro Fest Expense $1,400.00 Graphics for advertising !Expense Expense $12.5.00 Payroll Staff Expense $1,200.00 Rental Property Delray Joint Venture Expense $15,000.00 Lodgings and meals, travel Expense $650.00 Media Related Expenses Expense $1,208.00 Two Million Dollar liability ins policy Expense $425.00 Administrative Overhead telephone, mailings,etc Expense $t,100.00 Entertainment $3,000.00 Misc expense $900.00 Service SubTotal $34,519.72 Total Expenses $56,761.69 Show Profit $11,263.31 11~Y-22-2001 TIE 11:20 ~ ClTY. IIGR. D£L~Y. BCH P. 02 HOLD H~/MLE~ ~R~NT ~I~,.,~.._, 200~ by and between thc CITY OF DELRAY BF_,ACH, FLORIDA, a Florida municipal corp~oration (hereinafter SPONSOR"). referred to as "CITY") _, (he. reimfmr referred to as "EVENT WIT, NES SETH: (hereinafter referred to as the "Event"); and / t kllOWn as WHEREAS, the B~ent will be held within the City limits of Delray Beach; and WHRREAS, tie City Commission has dcm'mined that such an Event promotes the public's health, safety and welfare. NOW, .TF!ERI~ORE, for the mutual covenants and. matters set forth herein, as of the date set forth above, the parties hereby agree as follows: 1, The recirafiom set forth above ~ incorporated herein. 2. Indemnification. EV'~rI" gPONSOR, for good and valuable consideration, agrees to defend, indem_-!fy, ~-a hold harmless the CITY, its agents, officers, employees and servants from any and all suits, causes of action or any claim whatsoever made, and d.m_.ges, which may result from any activity conducted by EVENT SPONSOR, its ag~s, embloyebs, assigns or contractors, in relation to the Event. ~1~Y-22-2001 T~ 11:21 ~i~ (]ITY, FIr~P~.D£L~Y. Bf]H P, 03 ~. Insurance. EVENT SPONSOR s_h_s_ll obtain insurance cove. ring the Event in the s__mounts and of the types specifw, d in Exhibit "A~ attached hereto which is incorporated herein as if fully set forth. 4. Gov,.e~l laws~ venue. This agreement shall be governed by the hws of the State of Florida. Any procee~g initiated to enforce the provisions of _~b!s agreement ~hall be ~ . brought in the State or Federal courts located in Palm Beach County, Fl~rida. 5. Binding Effect,. All of the terms and provisions of this Agreement shall be binding upon, inure to the be.n~t of, arid be ca,forcible by, thc parties hereto and their respective heirs, successors, legal representatives, and permitted assigns. 6. Entire Agreement. This Agreement shall constitute the entire agreement of the parties with resp~t to the subject matter of it. All prior understandings and agreements betwee~ the parties with respect to such matters are merged into this Agreement, which alone fully and con~letely expresses their understanding. ?. .Ameu&men~s. This Agreement may not be amended, modified, altered, or changed in any respect, except by a further agreement in writing duly executed by each of the parties hereto. S. .Third Parties. Noth~ in th~s. A~re~.ment, whether express or implied, is intended to confer any rights or r~medies under or by reason of this Agreement upon any person other than the parties hereto and their respective heirs, successors, ~egal representatives,, end permitted assigv, s, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third persons to any party to .this Agreement, nor shall any provision thereof give any third person any' right of subrogation or action over or · against any party to this Ag~*ment. 2 CITY, iiGR. DELRAY. BOil P. 04 IN WrrNBSS WHBRBOF, file parties hereto have ~n~ered into mi.~ ~gre~r~-t the day and year f'~t wril~en above. ATTBST: C~ C1~1~I Approved as CITY OF DELRAY BEACH, FLORIOA, 'a Florida mtmicipal corporation By: Da'~,id Schmidt, Mayor ~:iry AUor~ STATE OF FLORIDA COUNTY OF The foregoing imtmment was aclmowled~cd bd6~ me this .. day of ~(~il~/l~ .. 20072 by_ ~]~0~,k~ ~,~' (~e of officer or agent, tiff, of ac~wledg~),, ~O~x ~ _ _ ira, or p~e of ~orafion) ~omgon, on be~lf of .~ ~fi~. ~/She ~ p~o~y ~ to ~ or has prodded (~e of ~igi~u.~e ~ Nblary Public- ~at~ of Florida Caren Siegler · MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER ~71/~ SUBJECT: AGENDA ITEM # - REGULAR MEETING OF DE(~EMBER 3,2002 REPORT OF APPEALABLE LAND DEVELOPMENT BOARD ACTIONS DATE: NOVEMBER 27, 2002 Attached is the Report of Appealable Land Use Items for the period November 18, 2002 through November 29, 2002. It informs the Commission of the various land use actions taken by the designated boards, that may be appealed by the City Commission. Recommend review of the appealable actions for the period stated. Receive and file the report as appropriate. S:\City Clerk\chevelle folder\agenda memos\apagmtm~12.3.02 TO: THRU: FROM: SUBJECT: DAVI.D~T. HARDEN, CITY MANAGER PAUL DORLING, ~RECTOR OF PLANNING AND ZONING 0ASMIN ALLEN, PLANNER MEETING OF DECEMBER 3, 2002 *CONSENT AGENDA* REPORT OF APPEALABLE LAND USE ITEMS NOVEMBER 18, 2002 THRU NOVEMBER 29, 2002 The action requested of the City Commission is that of review of appealable actions which were made by various Boards during the period of November 18, 2002 through November 29, 2002. This is the method of informing the City Commission of the land use actions, taken by designated Boards, which may be appealed by the City Commission. After this meeting, the appeal period shall expire (unless the 10 day minimum has not occurred). Section 2.4.7(E) of the LDRs applies. In summary, it provides that the City Commission hears appeals of actions taken by an approving Board. It also provides that the City Commission may file an appeal. To do so: 1. The item must be raised by a Commission member. 2. By motion, an action must be taken to place the item on the next meeting of the Commission as an appealed item. Ao Approved with conditions (5 to 0, Jess Sowards absent, Mark Krall stepped down), a master plan modification in conjunction with the construction of 90 zero lot-line single family units on 18.94 acres within Phase IV of the Sabal Lakes Subdivision, located at the southeast corner of Barwick Road and Sabal Lakes Road. Concurrently, the Board approved the following internal adjustments: - Reduced the front setback from 20' to 15' to accommodate Model 319 for lots 55-62, 69 and 71-86. Reduced the required side interior setback from 15' to 10' throughout Phase IV. - Reduced the required right-of-way width from 50' to 40' on the terminus of the private roadways. City Commission Documentation Appealable Items Meeting of December 3, 2002 Page 2 No other appealable items were considered by the Board. The following items will be forwarded to the City Commission for action. Recommended denial (6 to 0), of a conditional use request to allow the establishment of a child care facility for Albatross Child Care Center, located at the southeast corner of Albatross Road and Curlew Road. Recommended approval (6 to 0), of a combined preliminary/final plat for Calypso Bay Townhomes, a proposed 6-unit townhouse development, located on the west side of Gleason Street, approximately 100 feet south of Miramar Drive. Recommended approval (6 to 0), of a combined preliminary/final plat for Seabreeze Isles, a proposed 5-unit townhouse development, located at the southwest corner of Seabreeze Avenue and Lowry Street. Recommended approval (6 to 0), of a combined preliminary/final plat for a 4.15 acre development known as Pineapple Grove Village, located on the east and west sides of NE 3rd Avenue, between NE 3rd Street and NE 2nd Street and extending approximately 154 feet south of NE 2nd Street. Approved (6 to 0, Deborah Dowd absent), a request for a color change for an existing residential building for The Dorchester, located at the northwest corner Ocean Boulevard and Thomas Street. Tabled (6 to 0), the architectural elevation plan to allow the installation of a retractable awning for Caf~ Veri Amici, located on the east side of Pineapple Grove Way (NE 2nd Avenue), south of NE 2nd Street. The Board requested that the applicant provide other alternatives for the proposed awning. Approved (6 to 0), the architectural elevation plan associated with the installation of a new door and awning along the west elevation for Rotelli, an existing restaurant located at the northeast corner of SE 5th Avenue (southbound Federal Highway) and East Atlantic Avenue. Tabled (6 to 0), the architectural elevation plan associated with the installation of Iouvered shutters, decorative railing and a color change for Waterway East, an existing commercial building, located at the southeast corner of the Intracoastal Waterway and East Atlantic Avenue. The Board requested that the applicant rethink the design and the architectural elements proposed. Approved (6 to 0), the architectural elevation plan associated with the addition of an awning on the west elevation at 59 SE 4th Avenue, an existing commercial building, located on the east side of SE 4th Avenue, south of East Atlantic Avenue. City Commission Documentation Appealable Items Meeting of December 3, 2002 Page 3 Approved (6 to 0), the architectural elevation plan associated with the addition of awnings for 495 NE 4th Street, an existing commercial building, located at the northwest corner of NE 5th Avenue (southbound Federal Highway) and NE 4th Street. Approved (5 to 0, Mark Gregory stepped down), the architectural elevation plan associated with fa(;ade changes for the Antique Experience, located at the southeast corner of SE 5th Avenue (southbound Federal Highway) and East Atlantic Avenue. Approved (5 to 0, Gary Eliopoulos stepped down), the architectural elevation plan associated with elevation changes for Spanish River Inn, an existing hotel, located at the northeast corner of East Atlantic Avenue and Seabreeze Avenue. Approved with conditions (6 to 0), a Class II site plan modification and landscape plan for Old Palm Grove, a proposed residential development, located at the northeast and southeast corners of North Federal Highway and Royal Palm Boulevard. The Board tabled the architectural elevation plan and directed the applicant to reduce the number of architectural elements so as to lessen the "gingerbread" effect. 10.Approved with conditions (6 to 0), a Class V site plan, architectural elevation plan and landscape plan associated with the construction of a 2,400 square foot contractor's office for Tropical Awning, located on the west side of SE 1st Avenue, approximately 50' north of SE 4th Street. Approved (6 to 0, Perez-Azua absent), a request to modify the architectural plan for Atlantic Grove (townhomes component), located on the north side of West Atlantic Avenue between NW 3rd Avenue and NW 4th Avenue. Approved (6 to 0), a Certificate of Appropriateness associated with a color change for the Colony Hotel, located at the northwest corner of NE 6th Avenue (northbound Federal Highway) and East Atlantic Avenue (525 East Atlantic Avenue). Approved (6 to 0), a Certificate of Appropriateness associated with the installation of awnings for the Popper/Barnett Residence, located on the west side of SE 7th Avenue, between SE 3rd Street and SE 4th Street (330 SE 7th Avenue). By motion, receive and file this report. Attachment: Location Map. CITY OF DELRAY BEACH, FLORIDA - City Commission Meeting- December 3, 2002 GULF STRFJtM BLVD L-30 CANAL E/7 ,.__. ,- - ~ ~__ _ _.I- - -I '- ~ -'t ..... h ,...., I .,- , u ~,__, b..' LOWSON BOULEVARD ' ,~- ~-~ LINTON BOULEVARD ~_~ L-38 CANAL LAKE 2ND ST SW P &Z: A SABAL LAKES PHASE IV S.P.R.A.B ' 1. THE DORCHESTER 2 CAFE VERI AMICl 3 ROTELLI 4 WATERWAYEAST 5 59S. E 4THAVENUE 6. 495 N.E 4TH STREET 7 THE ANTIQUE EXPERIENCE 8. SPANISH RIVER INN 9 OLD PALM GROVE 10 TROPICAL AWNING H. PB · X ATLANTIC GROVE Y COLONY HOTEL Z POPPER/BARNETT RESIDENCE CITY LIMITS / V I ONE MILE I GRAPHIC SCALE CITY OF DELRAY BEACH, FL PLANNING & ZONING DEPARTMENT 2002 - - DIGITAL BASE-MAPPING SYSTEM - - $ MelTIO To: From: City Commission /~ David Harden ~'f November 27, 2002 General Employee Pay Plan Adjustments Distributed with this agenda package is a copy of the Salary Study recently completed by Human Resources Management Partners, Inc. The study proposes numerous adjustments to our pay plan as well as adjustments to individual jobs in order to keep us competitive in the market place. You will recall that we budgeted a relatively large amount in Contingencies this year, primarily to fund needed adjustments in our general employee pay scales. The amount needed to fund the changes recommended in the Study and the attached memo from our Human Resources Director is about $350,000, including fringe benefits. We have sufficient funds available in Contingencies to cover this cost. Recommendation: I recommended that the Commission approve all the pay plan changes proposed in the HRMP Salary Study report and the attached memo from Ned Gusty. HUMAN RESOURCES MEMORANDUM TO: Mayor David Schmidt City Commissioners TItROUGH: David Harden, City Manager FROM: Ned Gusty, Human Resources Director'~/,l~ DATE.' November 27, 2002 SUBJECT: HRMP, Inc. Salary Study The Human Resources Management Partners, Inc. have completed the Salary Study for the non-represented job classifications and offered their final report. The study compares salary schedules for the Director, Exempt and Non- Exempt classifications with the external labor market ranges, as well as, notes internal equity adjustments. A three percent (3%) adjustment is recommended at the minimum/maximum rate for all three schedules. Additionally, there are appropriate recommendations for reallocations of certain job classifications within the schedules, primarily to adjust for external labor market comparisons. Finally, in order to alleviate salary compression issues with incumbents and future hires, it is recommended by this office, that all incumbent employees within the non-represented job classifications, receive a three percent (3%) base rate adjustment effective December 1,2002. MEMORANDUM TO: FROM: SUBJECT: DATE: MAYOR AND CITY COMMISSIONERS AGENDA ITEM - REGULAR MEETING OF DECEMBER 3. 2002 AWARD OF BIDS AND CONTRACTS NOVEMBER 27, 2002 This is before the City Commission to approve the award of the following bids: Contract award to Insituform Technologies, Inc. in the amount of $528,972.00 for trenchless sanitary sewer rehabilitation of 9,112 feet of gravity sewer (System 17/Barrier Island). Funding is available from 442-5178-536-63.51 (Sewer Mains). Bid award to various vendors for the purchase of chemicals and fertilizers via Co-op Bid #2002-43 for a total amount of $183,000.00. Funding is available from 001- 4131-572-52.26 and 001-4511-539-52.26 (General Fund/Gardening Supplies), 445- 4714-572-52.26 (Delray Beach Municipal Golf Course Fund/Gardening Supplies), and 446-4714-572-52.26 (Lakeview Golf Course Fund/Gardening Supplies). Lease award to Meats Motor Leasing in the amount of $28,000.00 for FY 2002 for the lease of five (5) police vehicles under the Florida Sheriff's Association and Florida Association of Counties, Bid #02-10-0826. Funding is available from 001- 2115-521-44.40 (Rental and Lease Vehicles). Recommend approval of the above bids and purchases. S:\City Clerk\chevelle folder\agenda memo\B~d Memo.12.3.02 City Of Delray Beach Department of Environmental Services M E M 0 R A N D U M TO: FROM: DATE: SUBJECT: David T. Harden City Manager C. Danvers Beatty, P.E.-~~~ Deputy Director of Publi~tiliff~ November 25, 2002 Rehabilitation of Gravity Sewer System 17 Attached is an Agenda Request and supporting documentation for award of a contract to Insituform Technologies, Inc. for trenchless sanitary sewer rehabilitation of 9,112 feet of gravity sewer. The specific area identified for rehabilitation is System 17, Barrier Island. The work will be performed based on unit prices from the existing Manatee County Contract on file in the Purchasing Division. The total amount of this contract is $528,972.00 and funding is available from R&R Account # 442-5178-536-63.51, Sewer Mains. Please place this item on the December 3, 2002 Agenda for consideration by City Commission. CDB/pd CC: Richard Hasko, P.E., Director of Environmental Services Scott Solomon, Manager of Water/Sewer Network Division City Clerks Office Agenda File U.\wwdatahMemo\C~ty ManagerLRehabfi~taUon of Gravity Sewer 112502 doc ,', , ~ ~' ., .~ ~I~ ~ ~ ~~~ ~/ /// ~~~~/~ ~ ~ --- ,r ,~ ~-~ I ~ _ ~ ~ ~ ............... / I ~ ~ ~ ' .:~~ // r .~ ~~/[ /~/ I E~M~ SE~ES ~PA~ s~t,. 17 Rohob ~~A~~Y~~~ 02-200 1 of 1 ~00 0 O0 ~ O~ 0 tO ~ 0 C:, 0 __ t- ~ 0 0 0 O0 0 ~ 0 0 0~000 0 000 0~ 0~000 0 0~0 CZ) 0 0 0 0 0~00 0 O~ 0 ~ ~000 0~0 ~000 0~0 ~ 0 ~ ~ 00 0 ~ 00 ~ ~ 00 ~ O~ ~ O~ ~ O~ 0~00 ~ O~ 0~000 0 000 0~ 0 0 0 0 0~00 0~00 0 O~ 0 ~ ~00 ~ O0 ~ O~ _=_-m- ,-3 o~o .-I "0 0 .-I CD 0 0~00 ~ O0 ~ O~ ~00 ~ O0 ~ O~ 0~00 ~ O~ 0 ~ o ~0 CO tO {30 ~ 0 ~1' ~0 eO 0 ('~ AGENDA REQUEST No, Request to be placed on: X Regular Agenda __ Special Agenda __ Workshop Agenda Agenda Item ~.~._ Date: November 25, 2002 When: D~cember 03, 2002 Description of item (who, what, where, how much): Staff requests Commission award of a contract to Insltuform Technologies, Inc. for trenchless sanitary sewer rehabilitation of 9,112 feet of gravity sewer. The work will be performed based on unit prices from the existing Manatee County Contract on file in the Purchasing Dixnslon. The total amount of this contract is $528,972.00 and funding is available from Account # 442-5178-536-63.51, Sewer Mains. ORDINANCEfRESOLUTION REQUIRED: YES/NO DRAF'r ATTACHED YES/NO Recommendation: County Contract in the amount of $528.972.00. Department head signature: Determination of Consistency with Comprehensive Plan: Staff recommends award of a contract to Insituform Technolo~es, Inc. off the Manatee City Attorney Review/Recommendation (if applicable): Budget Director Review (re. gqni~d on all items involving expenditure of funds): Funding available:~ Funding alternatives ~' (if applicable) Account No. & Description Account Balance City Manager Review: Approved for agenda: ~/NO ~/~/ Hold Until: Agenda Coordinator Review: Received: Placed on Agenda: Action: Approved/Disapproved U:\wwdata~Forms~genda Requests~AgendaReq - Grawty Sewer 112502.doc MEMORANDUM TO: FROM: THROUGH: DATE: SUBJECT: David T. Harden, City Manager Jacklyn Rooney, Purchasing Supervisov~ Joseph Safford, Finance Director November 26, 2002 DOCUMENTATION - CITY COMMISSION MEETING DECEMBER 03, 2002 - BID AWARD - BID//2002-43 CO-OP BID CHEMICALS AND FERTILIZERS Item Before Commission: City Commission is requested to approve multiple awards to low responsive bidder(s), as stated below, at an estimated annual cost of $183,000 for the City of Delray Beach. Background: The City of Delray Beach is the lead entity for this co-operative bid. Bids were received on Thursday, October 10, 2002 from eighteen (18) vendors, all in accordance with City purchasing policies and procedures. (Bid #2002-43), documentation on file in the Purchasing office.) A tabulation of bids with the awarded vendor highlighted and award recommendations per item number is attached for your review. A meeting was held on November 19, 2002, with Tom Arendt, Delray Beach Municipal Golf Course, Tom Gyrm, Lakeview Golf Course, Tim Simmons, Parks Superintendent, and Purchasing to review bids received and make award recommendations. See attached memo dated November 26, 2002 to Palm Beach County Cooperative Purchasing Council. Awarded vendors are as listed below: Vendor(s): Argo Distribution d/b/a Pro Source One DuCor International Corp. Carso Inc Southeastern Turf Grass Supply Inc. Helena Chemical Company Lesco Inc. Parkway Research Univar USA (Vopak Van Waters & Rodgers) Lykes Agri Sales Inc. United Horticulture Supply Diamond R. Fertilizer Co. Parkway Research / Division of Brandt Atlantic FEC Fertilizer & Chemical Co. Howard Fertilizer & Chemical Co. Inc. Liquid Ag Systems (Div. of Douglass Fert) Recommendation: Staff recommends multiple awards to vendors as stated above at an estimated annual cost of $183,000 for the City of Delray Beach. Funding from the City of Delray Parks and Recreation Department operating budget of $69,000 and City of Delray Beach Municipal Golf Course, and Lakeview Golf Course operating budget of $114,000. Attachments: Tabulation of Bids Memo to Co-op Members Award Recommendations Cc: Joe Weldon, Director of Parks & Recreation Tim Simmons, Superintendent of Parks & Recreation Brahm Dubin, Delray Beach Municipal Golf Course Tom Arendt, Delray Beach Municipal Golf Course Tom Gynn, Lakeview Golf Course City of Boca Raton City of Boynton Beach City of West Palm Beach Solid Waste Authority of Palm Beach County City of Lake Worth City of Greenacres DELRAY BEACH AII-AmedcaCity 1993 2001 Members of the Palm Beach County Cooperative Purchasing Council 100 N.W 1st AVENUE November 26, 2002 DELRAY BEACH, FLORIDA 33444 561/243-7000 RE: Bid #2002-43 - Co-op Bid "Chemicals and Fertilizers" Dear Members; As the City of Delray Beach is the lead entity for this Co-op Bid, attached you will find the City of Delray Commission Agenda package with bid awards broken down per item number for Chemicals and Fertilizers. This contract is scheduled for the December 03, 2002 Commission Agenda. The City of Delray Beach recommended award to low bid per item to the responsible, responsive bidder who bid per the required specifications. In some items substitutes were submitted and approved for award. In the case of tie bids, the award was made to the vendor closest to the City of Delray Beach. In the case of minimum shipping requirements, as stated by vendor(s), each entity may choose to award accordingly to their quantities and minimum shipping size requirements and storage space available. If you have any questions, you may contact me at (561) 243-7163. Purchasing Supervisor Attachments Cc: Joseph Safford, Finance Director City of Boca Raton City of West Palm Beach Solid Waste Authority of Palm Beach Cnty. Tom Arendt, Delray Beach Golf Course Tim Simmons, Superintendent of Parks & Recreation Tom Gyrm, Lakeview Golf Course City of Boynton Beach City of Lake Worth City of Greenacres Prmted Or;, Recycled THE EFFORT ALWAYS MATTERS CHEMICAL AND FERTILIZERS BID #2002-43 AWARD RECOMMENDATIONS CHEMICALS: ITEM # DESCRIPTION UNIT PRICE VENDOR COST COMMENTS 1. Acephate 2. Alliette Amdro Ant Killer 4. Aquathol Super K 5. Arsenal 6. Asulox 7. Atrazine 4L Herbicide 8. Award 9. Barricade 65 WG 10. Basagran 11. Bivert Sticking Agent 12. Blazon SP or Equivalent 13. Buffer Control Howard Fertilizer & Chemical Co. Agro Distribution d/b/a Pro Source One Agro Distribution Agro Distribution United Horticultural Supply Helena Chemical Helena Chemical Agro Distribution Carso, Inc. Carso, Inc. Lesco Inc. Company Parkway Research DeCor International $8.00 lb. 10lb. min. $16.25 lb. $6,05 lb. $12.30 lb. $241.00 gal. $54.70 gal. $9.65 gal. $6.30 lb. $34.00 lb. $62.00 gal. $10.85 gal. 2.5 gal. min. Lesco Spreader Sticker $16.75 gal. Big Foot $7.05 gal. DuCor Buffer II Low Bidder Low Bidder Low Bidder Univar Bid Substitute Item, Award to Agro Low Bidder Low Bidder Low Bidder LOw Bidder Low Bidder Low Bidder Low Bidder Award to Lesco as low bidder Future Horizons requirement For shipping was a 30 gal dram (too large) Low Bidder Low Bidder CHEMICALS: ITEM # DESCRIPTION VENDOR UNIT PRICE COST COMMENTS 14. Captain 15. Chipco 26019 Agro Distribution nesco, Inc. $15.00 gal. $105.00 gal. Chipco 26GT 16. Corsair Herbicide Helena Chemical $229.00 - 8 oz. blt. 17. Clean Carbon Helena Chemical $2.38 lb. 18. Daconil Weather Southeastern Turf $47.76 gal. Stick Concord SST 19. Daconil ZN Helena Chemical $44.00 gal. w/Zinc 20. Defoamer Non Toxic 21. Dithan 45 Wetable Powder 22. Dursban 2.% Granular Insecticide 23. Dursban Cricket Bait 1% Dursban Pro 2-1/2 gal Finale Herbicide 24. Parkway Research Low Bidder Low Bidder - Carso bid substitute item - Tie bid - Lesco & Helena, Lesco closet To Delray Low Bidder Low Bidder Low Bidder 25 26. Fire Ant Amdro Bait (granular) Low bidders - Glades & Carson bid a substitute - award to Helena $1.12 pt. Low Bidder De foamer Agro Distribution $2.80 lb. Low Bidder Helena Chemical Lesco Inc. $.62 lb. Low Bidder Chlorpyifos 2.32 G $.44 lb. Low Bidder Lesco Dursban 1% Gran Bait For Golf Course Only Agro Distributors $30.00 gal. Low Bidder Helena Chemical Lesco Inc. $48.00 gal. $5.84 lb. Varsity Low Bidder Univar USA bid a Substitute item - Award to Lesco CHEMICALS: ITEM # DESCRIPTION VENDOR UNIT PRICE COST COMMENTS 27. Fusilade Liquid 28. Garlon 424 29. Green Lawnger 30. Heritage 31. Illoxan 3EC6 32. Image 33. Kerb 50 W SP 34. L1 700 Surfactant 35. Lemwet 36. Manage Herbicide 37. Mancozeb Fungicide 38. Manicure 39. Manor 40. Mavrik 41. Merit or equal Agro Distribution Helena Chemical Helena Chemical Carrso, Inc. Southeastem Turf Helena Chemical Agro Distribution Agro Distribution Du Cor International Argo Distribution Lesco Inc. Lesco Inc. Agro Distribution Agro Distribution Lesco Inc. $152.00 gal. $76.10 gal. Vegetation 4 $27.50 gal. $348.5O lb. $91.87 gal. $65.00 pkg. 11.43 oz. pkg $31.11 lb. $7.75 gal. $5.80 gal. $70.75 btl. 1.3 oz. per bottle $12.50 gal. Lesco Mancozeb 4 Flo $9.10 case Lesco Manicure Uitrex $51.00 oz. $311.80 gal. $15.20 oz. Diamond R bid a substitute item - Award to Agro Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low bidder - Regal. bid substitute item Award to Lesco Low Bidder Low Bidder Low Bidder CHEMICALS: ITEM # DESCRIPTION VENDOR UNIT PRICE COST COMMENTS 42. Mole/Cricket Bait Lesco Inc. 43. MSAM 6.6 Helena Chemical 44. MSMA + Surfactant Agro Distribution 45. Newmacur (3) Liquid 46. Nemacur 10Q United Horticultural Agro Distribution $.44 lb. Lesco Dursban 1% Grain Bait $14.40 gal. $16.36 gal. R/Z 912 $85.00 gal. $2.99 lb. Low Bidder- Helena bid substitute item - award to Lesco Low Bidder Low Bidder Tie bid Agro and United Horticultural - Award to United - Closet to Delray- Low Bidder Parkway Bid Substitute Item Low Bidder 47. Optima Diamond R $11.70 gal. Fertilizer 48. Organcide Helena Chemical $24.00 gal. 49. Orthene 1 lb. cans Lesco Inc. $8.75 can Lesco Fate 50. Orthene TT&O 51. Pendulum 3.3 EC 52. Pre-M 53. Primer 604 Lesco Inc. ' Lesco Inc. Lesco Inc. $8.65 lb. Lesco Fate $33.00 gal. Lesco Pre-M 3.3 EC $7.20 lb. Prem 60 DG No Award Low Bidder Low Bidder Low Bidder Low Bidder Low Bidders - Regal and Carso bid alternates that Are not acceptable Low Bidder Requested by City of Boca Raton - No Award CHEMICALS: ITEM # DESCRIPTION VENDOR UNIT PRICE COST COMMENTS 54. Primo 55. Pro Star 50 WP 56. Reward 57. Rodeo 140 58. Ronstar 2 G 59. Round-up Herbicide 60. Round-up Pro 61. Round-up Pro 2 ½ gal bottle 62. Sencor 75 T.H. 63. Sevin 80 WSP 64. Snail & Slug Bait Pellets 65. Subdue 2E 66. Subdue Grandular 67. Surfland As T/O 68. Talstar Liquid Agro Distribution Agro Distribution United Horticultural Helena Chemical Helena Chemical Southeastern Turf Southeastern Turf Southeastern Turf Agro Distribution Agro Distribution Agio Distribution Agro Distribution Agro Distribution Howard Fertilizer Agro Distribution $335.00 gal. $35.50 lb. $89.50 gal. $28.57 gal. Glypro $1.29 lb. $19.70 gal. Clear Out 41 $19.70 gal. Clear Out 41 Plus $20.60 gal. Clear Out 41 Plus $31.00 lb. $5.45 lb. $.86 lb. $495.00 gal. $2.8O lb. $84.00 gal. $150.00 gal. Low Bidder Low Bidder Tie bids with Helena and Agro - award to United Horticultural Closet to Delray Low Bidder Low Bidder - Agro shipping minimum too large, and Regal bid an substitute item (Ronstar AC) Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder CHEMICALS: ITEM # DESCRIPTION VENDOR UNIT PRICE COST COMMENTS 69. Talstar .2G 70. Tank Newtralizer 71. Top Choice 72. Tracker Dye Blue Dye Spray 73. Trimec Plus 74. Wetting Agent Lesco Inc. Diamond R Fertilizer Lesco Parkway Research Helena Chemical Liquid AG Systems $.72 lb. $5.25 qt. $2.54 lb. $16.75 gal. $28.97 gal. $3.50 gal. Tie bid with Agro & Lesco, award to Lesco As minimum shipping For Agro too large Low Bidder (City of Boca Raton Requirement) City of Boynton Beach Requirement /Recommendation Low Bidder Low Bidder Low Bidder FERTILIZERS: ITEM # DESCRIPTION UNIT PR/CE VENDOR COST COMMENTS 1. 0-0-7 W/Atrazine 10. 11. 0-0-21 Sul Po-Mag Granular Kilbrew Trailer Delivery 0-0-45 Super K Greens Turf Fertilizer 5-10-17 Ronstar .95%+ 6-6-6 - 40% Organic 6-6-6 40% Organic Contains Secondaries 8-0-8 Greens Mix 12-0-0 Chelated Iron 12-0-6 Bulk Liquid 12-2-14 Southern Landscape & Ornamental 8-10-10 Ornamental Lesco Inc. $0.122 lb. Low Bidder Agro Distribution d/b/a Pro Source $0.11 lb. Lykes Agri Sales Inc. $193.65 Lesco Inc. Howard Fertilizer $0.21 lb. Lesco Elite 0-0-50 $0.4885 lb. Atlantic FEC Fertilizer Golf Ventures Inc. $0.0848 lb. $0.064 lb. Bulk Lesco Inc. Liquid Ag Systems Div. of Douglass $0.25 lb. Lesco Elite 15-0-15 $4.25 gal. Super 12-0-0 plus Chelated Iron Lykes Agri Sales Lesco Inc. $0.067175 lb. $0.17 lb. Lykes Agri Sales $0.124125 lb. Tie Bid w/Diamond, Agro Closet to Delray Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Tie Bid w/Parkway Research, Lesco is Closet to Delray Low Bidder Diamond minimum shipping of 250 gal. too large- award to Liquid Ag Low Bidder Low Bidder Low Bidder FERTILIZERS CONT .... ITEM # DESCRIPTION VENDOR UNIT PRICE COST COMMENTS 12. 13-2-13 Fertilizer w/Talstar 13. 13-3-13 Greens Mix 14. 13-3-13 Tree & Palm Fertilizer 15. 13-4-14 Greens Greens Fertilizer 16. 14-2-14 Mirco Greens & Tee 17. 14-14-14 Plus Minors for Shrubs 18. 14-14-14 Osmocote 19. 15-5-10 w/1% Ronstar 20. 15-5-15 Grass Fertilizer 21. 16-4-8 Premium w/minors 22. 16-4-8 with Minors Lesco Inc. Lesco Inc. Lesco, Inc. Howard Fertilizer Parkway Research Golf Ventures Diamond R. Fertilizer Howard Fertiliier Univar USA Lesco Inc. Lesco Inc. $0.318 lb. w/.69% talstar $0.256 lb. Lesco Elite 13-2-13 97% PPSCU $0.148 lb. Tropical 13-3-13 $0.35 lb. $.2375 lb. .70 FE, 2.50 Mg 15 Free, 9.9 units Slow Release N $0.222 lb. $0.56 lb. 15-15-15 4.0 mg .02 fe, 3 month Luxacote $.535 lb. $0.147 lb. iron 3% $0.122 lb. 25% PPSCU $0.102 lb. Lesco 16-4-8 All Chemicals Low Bidder Low Bidder, Parkway Bid an alternate, award to Lesco Low Bidder Low Bidder - Golf minimum shipping of 4 tons too large Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder Low Bidder - Atlantic minimum shipping of 2 tons too large - award to Lesco Low Bidder FERTILIZERS CONT .... ITEM # DESCRIPTION VENDOR UNIT PRICE COST COMMENTS 23. 16-4-16 Greens Mix Lesco Inc. $0.25 lb. Low Bidder Lesco 15-0-15 Elite 24. 16-25-12 Turf Starter Fertilizer Howard Fertilizer $0.126 lb. Low Bidder 25. 17-1-10 Greens Grade Fertilizer Howard Fertilizer $0.303 lb. Low Bidder - Lesco - Bid a substitute item- Award to Howard 26. 17-4-6 Weed & Lesco Inc. Feed w/.76% Atrizine $0.162 lb. Lesco 20-2-19 w/-0.92% Atrazine Low Bidder 27. 18-2-9 Micro Lesco Inc. Greens & Tee Mixture $0.25 lb. Low Bidder Lesco 21-4-11 Elite 28. 19-0-19 Pre- Lesco Inc. $0.279 lb. Emergent Lesco 19-0-19 Weed Control w/1.31% Pre-M Low Bidder 29. 20-2-10 Professional Howard Fertilizer TurfFertlizer & Chemical Co. $0.127 lb. Low Bidder 30. 20-20-20 Water Lykes Agri Sales Soluble Powder $0.45 lb. Sungro Soluble Plant Food Low Bidder 31. 21-0-0 Bulk Liquid Lykes Agri Sales $0.06 lb. Low Bidder 32. 21-0-0 Sulfate Atlantic FEC $0.1062 lb. of Ammonia Fertilizer Low Bidder 33. 21-4-11 Grees Mix Lesco Inc. $0.251b. Low Bidder 34. 22-0-22 Lesco Inc. $0.165 lb. Lesco 19-0-19 75% PPSCU Low Bidder 35. 24-5-11 (St. Lesco Inc. $0.129 lb. Augustine Lesco 24-5-11 and Bahia Fert) 50% PPSCU Low Bidder FERTILIZERS CONT ........ ITEM # DESCRIPTION VENDOR 36. 25-3-10 Turf Fertilizer plus Iron Lesco Inc. 37. 29-3-5 Fertilizer Univar USA w/Dursban 38. 29-3-5 St. Augustine Lesco Inc. Weed Contron 39. Liquid Micro- Lesco Inc. nutrient Soil Supplement 40. Milorganite Lesco Inc. UNIT PR/CE COST $0.123 lb. Lesco 28-5-12 35% PPSCU $0.35 lb. $0.198 lb. Lesco 22-3-11 Mini w/1.05% atrazine $4.39 gal. Chelated Iron Plus Or; $245.00 for 55 gal dram $0.11 lb. Lesco 6-3-0 Elite COMMENTS Low Bidder Sole Bidder Low Bidder Low Bidder - Liquid AG System- minimum shipping Size too large 500 gal. award To Lesco Tie Bid with Agro, award to Lesco, closet to Delray 41. Step Hi Mag Agro Distribution $0.67 lb. Low Bidder nl LU CJ o uJ i.r. UJ -r 0~ ~ UJ -r -r AGENDA ITEM NUMBER: AGENDA REQUEST Request to be placed on: December 03, 2002 Date: November 26, 2002 XX Consent Agenda Special Agenda ~ Workshop Agenda Description of agenda item: Approve multiple awards to various vendors for Bid # 2002-43, Co-op Bid for Chemicals and Fertilizers for a total amount of $183,000 for City of Delray Beach. ORDINANCE/RESOLUTION REQUIRED: YES Draft Attached: YES NO NO Recommendation: Award multiple awards to various vendors for Bid #2002-43, Co-op Bid for Chemicals and Fertilizers for a total amount of $183,000 for the City of Delray Beach. Funding from the City of Delray Beach Parks and Recreation Department operating budget of $69,000, and City of Delray Beach Golf Course and Lakeview Golf Course operating budget of $114,000. Department Head Signature: Determination of Consistency with Comprehensive Plan: City Attorney Review/Recommendation (if applicable): Budget Director Review (required on all items involving expenditure of funds): Funding available: Yes '~ No Funding alternatives: -~ (~-~"-~ ~ .~~ (if applicable) Account Number: Account Description://' ~, Account Balance: City Manager Review: ~) '~l~ Approved for agenda:~ ~'1 No Hold Until: Agenda Coordinator Review: Received: Action: Approved Disapproved Hi-America 1993 Joseph L. Schroeder 2007 Chief of Police MEMORANDUM TO: FROM: DATE: SUBJECT: Jackie Rooney Purchasing Supervisor David Junghanl~ · Administrative Serw"~s Director November 26, 2002 AGENDA REC~UEST Enclosed please find our Agenda Request, for the lease of five (5) vehicles from Mears Motor Leasing. The lease of these vehicles is to replace the same number of vehicles current lease through Enterprise Fleet Leasin The will be used in support of the Department's ~,,~ ........ g... five (5) vehicles u,,,.,,~,,.~ver Investigative Unit. The COst of the lease for the remainder of this Fiscal Year is $28,000.00. The vehicles will be leased through the Flodda Sheriffs Association and Flodda Association of Counties, Bid # 02-10-0826. Should you have any questions or require additional information, please call or e.- mail me, and I will provide the necessary information. DJ/ Enclosure Serving with P.R. LD.E. Florida Sheriffs Association's Municipal Lease Program MEARS MOTOR LEASING Mears Motor Leasing is offering BOTH Municipal Open-End and Closed-End Lease Plans. The Open-End Lease Plan is the traditional tax-exempt $1.00 buy out, which is also called a "Lease Purchase". The Closed-End Lease Plan allows agencies to pay for only the useful life of the vehicle, which offers greater flexibility and a variety of options. We also offer financing plans for all types of equipment and projects. With these expanded services, Mears now offers the widest range of lease plans available in today's market! OPEN-END LEASE PLAN (Tax-Exempt Financing) CLOSED-END LEASE PLAN (Pre-Set Residual Values) OFFERED IN THESE LEASE PLANS: Marked Patrol Cars Administrative Vehicles Undercover Vehicles Trucks & Vans Equipment OVER 30 YEARS EXPERIENCE IN MUNICIPAL LEASING ~,- NO FLEET OR EQUIPMENT TOO SMALL FLEXIBLE MILEAGE AND TERMS CALL FOR A QUOTE: (407) 298-2982 VISIT OUR WEB SITE AT www. mearsleasing.com Bid Award Announcement (~- I 0-0856) 959 MEARS MOTOR LEASING 2002 - 2003 UNDERCOVER PROGRAM AUTOMOBILe, PICK-UP TRUCKS, AND VANS Meats Motor Lea.ming pi~ the Undercover Car ProSram in 1992. Today we lease hundmis of undercover vehicles to municipal a~uncies rJu~glxotm the state of Florida. The terms of our program are as foilow~: Term: T~lve (12) mouu~,s. Milen.~_~ Allowa~e_: 2,000nn'les permonth, per vehicle. Over mi]eag= - .12 per mil=. variety of czrs, pick-up trucks, nad vans (passeng~ or work) E _ouiomenc All automobiles ~uip[~ with prdexred packe~s. All truc~ wi~ eqtmi equipment except pow~' se, a~. ) _.S~scit~re~Vehicles:. biearsMotorLeasingwillprovid~substimt=tmit~forr~placen~ntifa v~icle's securit~ is compromised. Rep~ is based on [h~ numi~- of vehicles in se~ice. Radio & Surveilianc= E~u_ i_mn~nt: Radio end survmllance equipment may be utilized if no vis~le damage is inctu-md (ie_holes in dash, sc~es, dent~ etc.). Window Tintina: W'mdow tinting may be utilized if it is in,tailed at the deperUnent's expense. Emergency Bre~Down~. Meats Motor Lcasing's Semite Manager is available at any reasonable time £o rczolvc cmcrgezcy situations.. )> pick-Up and Return: Lessee will be ~espon.~'ble for th~ pick-up and t~mrn ofeJt vehicles to M,~rs' Orlando ioc~on~ except in en~gcncy situations. )' Insurance; ~ peovid~s all necessary i,~urauce. In case of a total Io~, ~ vuhicle shall b~ r~plaoed ss p~r u'~ Schedule "A". Cos~: ~ monody cost on one yem' old, or current model ye, ar, low mi]cngc vehicles, with rectory W~zTanty: Autom0~les& Ynm $5,18.00 per month per vdzicle True. ks & SUV's ~60.00 per month, per vehicle The znontldy cost of new vehicle, s, factory ordered: Pru~t ma~ iaw~ ~ trite h~ as mn,g: as $20.00 VEHICLES * EQUIPMENT · SALES 3905 El Rey Road. Orlando, FL. 32808 - Fax 407-578-.4924 · Phone 407-298-2982 WWW. MEARSLEASING.~M MEARS MOTOR LE.A~iNG 2002 - 2003 Under Cover Program Used Car Choices 2002 Model Year, Mileage in Mid Teens Term 12 Months @ $540.00 per month Buick Pontiac Ct~nmry G-rand Am Sedan V6 Chevrolet Grand Prix Sedan Malibu Bonneville Monte Carlo Nissan rmpala ~ Toyota Used Truck, Van and SUV Choices 2002 Model Year, Mileage in Mid Teens Term 12 Months @ $560.00 per month Chevrolet Trailblazer 4 dr. SOW Venture Mini Van Astro Mini Van . G 1500 Work Van .~ _ Sflverado ½ ton F.,xmnded Cab Durango SLT 4 dr. SUV Graud Caravan S.E. Lararaie SLT ~ ton Quad Cab Ford GMC Jeep Explorer XLS 4 dr. SLIV Windstar LX Mini Van F 150 XLT Super Cab Pick Up FISO XLT Crew Cab Pick Up GMC Safari SLE Mini Van Sieaxa SLE Extended Cab Clmad Cherokee 4 dr. Lamdo AGENDA ITEM NUMBER: AGENDA REQUEST Request to be placed on: X Consent Agenda When: December 3, 2002 Description of agenda item: Date: Special Agenda November 26 2002 Workshop Agenda This request is for the approval of the lease of five (5) vehicles from Meats Motor Leasing, Orlando Flodda. The lease of the vehicles will be used to support the Departments undercover unit. The lease of the vehicles will be from the Flodda Shedffs Association and Flodda Association of Counties, Bid #02-10- 0826. ORDINANCE/RESOLUTION REQUIRED: Draft of Resolution Attached: YES NO X YES NO X Recommendation: A,ppmval ~ Department Head Signature: Determination of Consistency wi N/A City Attorney Review/Recommendation (if applicable): N/A Budget Director Review (required on all items involving expenditure of funds): Funding available: Yes X No Funding alternatives (if N/A applicable): Account Numbe~. 001-2115-521-44.40 Account Description: Account Balance: City Manager Review: Approved for Agenda: Hold Until: Rental and Lease Vehicles tr $27,50o o0 Agenda Coordinator Review: Received: Action: Approved: Disapproved: P.O. # To: From: Subject: Date: MEMORANDUM City Commission David T. Harden, City Manager~'J~,X Resolution # 90-02, 91-02, and 92-02 November 25, 2002 In connection with proposed bond refundings, I recommend approval of the attached Resolution# 90-02, #91-02, and #92-02. A brief description of each resolution is as follows: Resolution #90-02 Resolution #90-02 authorizes the issuance and negotiated sale of up to $16,500,000 in Utility Tax Bonds. The proposed bonds will be issued for the purpose of refunding or refinancing City of Delray Beach Bonds, Series 1992, 1994, 1995, 1996, and 1998. The resolution stipulates that certain parameters must be met in order to effectuate the sale. These parameters are 1.) the true interest cost does not exceed 5% per annum, 2.) the Underwriter's fee or discount paid is not more than $6.00 per thousand of the original principal amount of the Bonds, 3.) the principal amount does not exceed $16,500,000, 4.) the final maturity of the Bonds does not extend beyond June 1, 2016 and 5.) the net present value savings for paying and defeasing a portion of the Refunded Bonds shall not be less than three percent (3%). The resolution also authorizes the Mayor, or in his absence, the Vice-Mayor, to execute the documents to effectuate the sale if these parameters have been met. RESOLUTION #91-02 and #92-02 Resolution #91-02 authorizes the issuance of up to $18,000,000 in General Obligation Bonds. The Bonds will be issued for the purpose of refunding the outstanding General Obligation Bonds, Series A & B. The resolution provides for the form and terms of the bonds as well as provides for City's undertaking regarding secondary market disclosure as required by the Securities and Exchange Commission. Resolution #92-02 authorizes the negotiated sale and sets the parameters to effectuate the sale. The parameters are 1.) the principal amount does not exceed $18,000,000, 2.) the true interest cost does not exceed 5%, 3.) the final maturity is not later than February 1, 2013, 4.) the underwriter's discount is not greater than $6.00 per $1,000 of the principal amount of the bonds and the 5.) the net present value savings for paying and defeasing the refunded bonds is not less than 3%. The resolution also authorizes the Mayor, or in his absence, the Vice-Mayor, to execute documents to effectuate the sale of bonds. MEMORANDUM To: David T. Harden, City Manager From: Joseph M. Safford, Director of Finance Subject: Resolution # 90-02, 91-02, and 92-02 Date: November 25, 2002 We have attached for Commission approval Resolution# 90-02, #91-02, and #92-02. A brief description of each resolution is as follows: Resolution #90-02 Resolution #90-02 authorizes the issuance and negotiated sale of up to $16,500,000 in Utility Tax Bonds. The proposed bonds will be issued for the purpose of refunding or refinancing City of Delray Beach Bonds, Series 1992, 1994, 1995, 1996, and 1998. The resolution stipulates that certain parameters must be met in order to effectuate the sale. These parameters are 1 .) the true interest cost does not exceed 5% per annum, 2.) the Underwriter's fee or discount paid is not more than $6.00 per thousand of the original principal amount of the Bonds, 3.) the principal amount does not exceed $16,500,000, 4.) the final maturity of the Bonds does not extend beyond June 1, 2016 and 5.) the net present value savings for paying and defeasing a portion of the Refunded Bonds shall not be less than three percent (3%). The resolution also authorizes the Mayor, or in his absence, the Vice-Mayor, to execute the documents to effectuate the sale if these parameters have been met. Total net present value savings, which takes into consideration the time value of money, is estimated at $931,000 over the term of the bonds or 6.07% of the refunded bonds. RESOLUTION #91-02 and #92-02 Resolution #91-02 authorizes the issuance of up to $18,000,000 in General Obligation Bonds. The Bonds will be issued for the purpose of refunding the outstanding General Obligation Bonds, Series A & B. The resolution provides for the form and terms of the bonds as well as provides for City's undertaking regarding secondary market disclosure as required by the Securities and Exchange Commission. Resolution #92-02 authorizes the negotiated sale and sets the parameters to effectuate the sale. The parameters are 1 .) the principal amount does not exceed $18,000,000, 2.) the true interest cost does not exceed 5%, 3.) the final maturity is not later than February 1,2013, 4.) the underwriter's discount is not greater than $6.00 per $1,000 of the principal amount of the bonds and the 5.) the net present value savings for paying and defeasing the refunded bonds is not less than 3%. The resolution also authorizes the Mayor, or in his absence, the Vice-Mayor, to execute documents to effectuate the sale of bonds. Total net present value savings is estimated at $738,000 over the term of the bonds or 4.35% of the refunded bonds. A presentation from Public Financial Management, the City's financial advisor, will precede the motion to approve the above referenced resolutions. PFM will explain the background and discuss expected results relative to refunding or refinancing of the City's prior bond issues. Request to be placed on: x When: AGENDA REQUEST Date: Regular Agenda December 3, 2002 Special Agenda 11/25/02 Workshop Agenda Description of agenda item (who., what, where, how much).. Approve Resolution # 90-02 n,thnr~{ng the issuance and ~cEot~ated sal= u~ up tu $16,500.000 in lTrql{r~ T~= p~.~o Approve ............. c ........ ~-u2 auth~lzing :he ismumne~ n~ ,,p ~ ~lm.nnm,nnn ~_ Ccneral ~'~ - -- · ........... uu~txuil ~iulmlng Bonds. Approve .......................... m ~,,~ n=~uLiaLed sale of ghe General Ubligation Refunding O~I~4CE/ ~SOLUTION ~QUI~D: YE~/N~' D~aft Attached: YES/NO Bonds and to set the parameters to effectuate the sale. Recommendation: Department Head Signature: Determination of Consistency with Comprehensive Plan: City Attorney Review/ Recommendation (if applicable): Budget Director Review (required on all items involving expenditure of funds): Funding available: YES/ NO Funding alternatives: Account No. & Description: Account Balance: (if applicable) City Manager Review: Approved for agenda: Hold Until: Ag%nda Coordinator Review: Received: Action: Approved/Disapproved RESOLUTION NO. R-90-02 CITY OF DELRAY BEACH, FLORIDA Utilities Tax Revenue Refunding Bonds, Series 2002 Utilities Tax Revenue Refunding Bond Resolution Adopted December 3, 2002 \\wpb~srv01\SANFORDS~399246v10\l 1/25/02\16787 011100 Resolution No. 90-02 SECTION 1. SECTION 2. SECTION 3. SECTION 4. SECTION 5. SECTION 6. SECTION SECTION SECTION SECTION 10. SECTION 11. SECTION 12. SECTION 13. SECTION 14. SECTION 15. SECTION 16. SECTION 17. SECTION 18. SECTION 19. SECTION 20. SECTION 21. SECTION 22. TABLE OF CONTENTS DEFINITIONS ......................................................................................................... 6 PURPOSE AND BOND DESIGNATION .............................................................. 8 TERMS AND DETAILS OF BONDS .................................................................... 8 APPLICATION OF BOND PROCEEDS ................................................................ 8 COVENANTS OF THE CITY .............................................................................. 10 RULE 15C2-12 UNDERTAKING ........................................................................ 11 7. REDEMPTION PROVISIONS ............................................................................. 15 8. NEGOTIATED SALE ........................................................................................... 18 9. APPOINTMENT OF UNDERWRITER ............................................................... 18 PARAMETERS FOR THE SALE OF THE BONDS ......................................... 19 PRELIMINARY AND OFFICIAL STATEMENT ............................................. 20 PAYING AGENT AND REGISTRAR ............................................................... 20 BOOK ENTRY BONDS ..................................................................................... 21 APPOINTMENT OF ESCROW AGENT ........................................................... 21 APPROVAL AND EXECUTION OF THE ESCROW AGREEMENT ............. 21 BOND INSURANCE POLICY AND RESERVE POLICY ............................... 22 INSURANCE AGREEMENT ............................................................................. 22 AMENDMENTS AND SUPPLEMENTS TO ORIGINAL RESOLUTION ...... 22 AMENDMENT TO ORIGINAL RESOLUTION AND 1994 RESOLUTION .. 23 SEVERABILITY OF INVALID PROVISIONS ................................................. 24 FURTHER AUTHORIZATIONS; RATIFICATION OF PRIOR ACTS ........... 25 REPEALER ......................................................................................................... 25 \\wpb-srv01~ANFORDS~399246v10\l 1/25102\16787 011100 Resolution No. 90-02 RESOLUTION NO. R-90-02 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZING THE NEGOTIATED SALE OF CITY OF DELRAY BEACH, FLORIDA, UTILITIES TAX REVENUE REFUNDING BONDS, SERIES 2002, IN THE INITIAL AGGREGATE PRINCIPAL AMOUNT OF NOT EXCEEDING $16,500,000 FOR THE PURPOSE OF PAYING AND DEFEASING THE CITY'S UTILITIES TAX REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 1992, ITS UTILITIES TAX REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 1994, ITS UTILITIES TAX REVENUE BONDS, SERIES 1995, ITS UTILITIES TAX REVENUE BONDS, SUBORDINATE SERIES 1996 AND ITS UTILITIES TAX REVENUE BONDS, SUBORDINATE SERIES 1998 (COLLECTIVELY, THE "REFUNDED BONDS"); DETERMINING CERTAIN DETAILS OF SAID BONDS; APPOINTING THE UNDERWRITER; PROVIDING FOR THE APPLICATION OF THE BOND PROCEEDS; APPROVING THE FORM OF, AND AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREEMENT TO EFFECT THE NEGOTIATED SALE OF THE BONDS AND SETTING THE PARAMETERS BY WHICH THE MAYOR OR VICE MAYOR SHALL BE AUTHORIZED TO EXECUTE AND DELIVER THE BOND PURCHASE AGREEMENT; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION OF AN OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE OF THE BONDS AND AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND THE OFFICIAL STATEMENT BY THE UNDERWRITER; APPOINTING A PAYING AGENT; APPOINTING A REGISTRAR; PROVIDING FOR A BOND INSURANCE POLICY FOR THE BONDS PROVIDED BY FINANCIAL SECURITY ASSURANCE, INC. AND AUTHORIZING AND AGREEING TO ANY NECESSARY SUPPLEMENTS OR AMENDMENTS TO THE BOND RESOLUTION IN CONNECTION THEREWITH; IF APPLICABLE, APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN INSURANCE AGREEMENT IN CONNECTION WITH THE ISSUANCE OF THE RESERVE POLICY BY FINANCIAL SECURITY ASSURANCE, INC. PROVIDING FOR THE UNDERTAKING BY THE CITY REGARDING SECONDARY MARKET DISCLOSURE AS REQUIRED BY RULE 15c2-12 OF THE SECURITIES AND EXCHANGE COMMISSION; AMENDING RESOLUTION NO. 98-91 IN CONNECTION WITH THE SECURITY FOR THE BONDS AND AMENDING RESOLUTION NO. 98-91 AND RESOLUTION NO. 27-94 IN CONNECTION WITH THE DEBT SERVICE RESERVE ACCOUNT FOR THE BONDS; AUTHORIZING THE PROPER OFFICERS OF THE CITY TO DO ALL OTHER THINGS DEEMED NECESSARY OR ADVISABLE AS TO THE SALE AND DELIVERY OF THE BONDS; AND PROVIDING FOR AN EFFECTIVE DATE. \\x,tpb-arv01~SAN~ORDSk399246v10\ll/25/02\16787 011100 Resolution No. 90-02 WHEREAS, the City Commission (the "Commission") of the City of Delray Beach, Florida (the "City") did, on December 3, 1991, adopt Resolution No. 98-91, as amended and supplemented (herein, the "Original Resolution"), for the purpose, among other things, of authorizing the issuance from time to time of Utilities Tax Revenue Bonds to finance and refinance municipal projects; and WHEREAS, any term not otherwise defined in this Resolution shall have the meaning ascribed to such term in the Bond Resolution (as defined below); and WHEREAS, pursuant to the terms and provisions of the Original Resolution, the City did, on February 5, 1992, issue its first series of obligations under the Original Resolution designated as Utilities Tax Revenue Refunding and Improvement Bonds, Series 1992, in the aggregate principal amount of $14,800,000 for the purposes authorized thereunder (herein, the "1992 Bonds"); and WHEREAS, the Commission did, on November 10, 1994, issue its second series of obligations under the Original Resolution, as such resolution was amended and supplemented by Resolution No. R-27-94 (the "1994 Resolution") designated as Utilities Tax Revenue Refunding and Improvement Bonds, Series 1994, in the aggregate principal amount of $5,810,000 for the purposes authorized in the 1994 Resolution (herein, the "1994 Bonds"); and WHEREAS, pursuant to the terms and provisions of the Original Resolution, the 1994 Resolution and Resolution No. R-54-95 (the "1995 Resolution"), the City did, on August 17, 1995, issue its third series of obligations designated as Utilities Tax Revenue Bonds, Series 1995, in the aggregate principal amount of $2,405,000 for the purposes authorized in the 1995 Resolution (herein, the "1995 Bonds"); and \\wply-srv01\SANFORDSX399246vI0\l 1/25/02\16787 011100 2 Resolution No. 90-02 WHEREAS, for the purpose of this Resolution, the Original Resolution, the 1994 Resolution and the 1995 Resolution are sometimes collectively referred to as the "Bond Resolution"; and WHEREAS, pursuant to the Bond Resolution and Resolution No. 79-96 (the "1996 Resolution',) the City did, on November 12, 1996, enter into that certain Line of Credit Agreement with SunTrust Bank, South Florida, N.A. (now known as SunTrust Bank) whereby the City was authorized to issue up to $3,300,000 of its Utilities Tax Revenue Bonds, Subordinate Series 1996 (the "1996 Bonds") for the purposes authorized in the 1996 Resolution; and WHEREAS, pursuant to the Bond Resolution and Resolution No. 56-98 (the "1998 Resolution") the City did, on September 25, 1998, enter into that certain Line of Credit Agreement with SunTrust Bank, South Florida, N.A. (now known as SunTrust Bank) whereby the City was authorized to issue up to $350,000 of its Utilities Tax Revenue Bonds, Subordinate Series 1998 (the "1998 Bonds") for the purposes authorized in the 1998 Resolution; and WI-IEREAS, the outstanding 1992 Bonds, 1994 Bonds, 1995 Bonds, 1996 Bonds and 1998 Bonds are collectively referred to as the "Refunded Bonds"; and WItEREAS, pursuant to Article III, Section 4.G of the Original Resolution, the Commission hereby determines it to be in the best economic interest of the City to pay and defease the Refunded Bonds through the issuance of its not to exceed $16,500,000 in initial aggregate principal amount of Utilities Tax Revenue Refunding Bonds, Series 2002 (herein, the "Bonds"); and WHEREAS, effective July 3, 1995, Rule 15c2-12 of the Securities and Exchange Commission (the "Rule',), provides that it is unlawful for a broker dealer or municipal securities \\Wb'$rv01\SANFORDS~399246v10\I1/25/02\I6787 011100 3 Resolution No. 90-02 dealer to purchase or sell municipal securities, which includes the Bonds, unless the issuer, which includes the City, has undertaken in a written agreement (herein, the "Undertaking") to provide to specified information repositories annual financial information and operating data relevant to the municipal securities and notice of certain specified material events; and WHEREAS, the Commission hereby determines to provide its Undertaking with respect to the Bonds in this Resolution; and WHEREAS, in connection with the payment and defeasance of all or a portion of the Refunded Bonds, the City will enter into that certain Escrow Deposit Agreement, expected to be dated as of December 1, 2002, with Wells Fargo Bank, National Association, as escrow agent (the "Escrow Agent") in substantially the form attached hereto as Exhibit A (herein, the "Escrow Agreement"); and WHEREAS, subject to the terms and conditions of this Resolution, the City will enter into a Bond Purchase Agreement with Bear Steams & Co., Inc., hereby designated by the Commission to be the underwriter of the Bonds (herein the "Underwriter"), setting forth the terms and conditions of the City's agreement to sell and the Underwfiter's agreement to purchase the Bonds, in substantially the form attached hereto as Exhibit B (herein, the "Purchase Contract"); and WHEREAS, based upon current market conditions, the complex nature of the financing, the need to issue the Bonds upon the most favorable market conditions and the advice of the City's financial advisor, the Commission hereby finds it is necessary and advisable to negotiate the sale of the Bonds; and \\wpb-$rv01~ANFORDS~399246v10\l 1/25/02\16787011100 4 Resolution No. 90-02 WHEREAS, the Commission hereby determines that it is in the best interest of the City to accept the Purchase Contract and to award the Bonds to the Underwriter pursuant to a negotiated sale and pursuant to the parameters set forth in Section 10 herein; and WHEREAS, the City will be, prior to the execution of the Purchase Contract, provided by the Underwriter with the disclosure statements required by Section 218.385, Florida Statutes, a copy of which is attached as an exhibit to the Purchase Contract; and WHEREAS, there have been also prepared and submitted to the Commission a draft Preliminary Official Statement, attached hereto as Exhibit C. WHEREAS, the City's financial advisor has recommended in a letter, attached hereto as Exhibit D, that the principal and interest on the Bonds be insured by a financial guaranty insurance policy (the "Bond Insurance Policy") to be issued by Financial Security Assurance, Inc. or any successor thereto (the "Bond Insurer") and that, subject to final pricing of the Bonds, in lieu of any required deposits into the Debt Service Reserve Account for the Bonds, a Reserve Account Credit Facility Substitute, in the form of a municipal bond debt service reserve fund insurance policy to be issued by the Bond Insurer (the "Reserve Policy") may be provided with the coverage which will be equal to the Debt Service Reserve Requirement for the Bonds as evidenced by the commitment of the Bond Insurer attached hereto as Exhibit E (the "Commitment"); and WI-IEREAS, the Commission has been advised that as a condition for the City to receive the Reserve Policy from the Bond Insurer, it is necessary for the City to enter into an Insurance Agreement with the Bond Insurer, the form of which is attached hereto as Exhibit F; and \\wb-srv01\SANFORDSk399246vI0\I 1/25/02\16787 011100 5 Resolution No. 90-02 WHEREAS, the Commission hereby adopts the recommendations of the City's financial advisor regarding the Bond Insurance Policy and, subject to final pricing of the Bonds, the Reserve Policy; and WHEREAS, as a condition of obtaining the Bond Insurance Policy and Reserve Policy, if any, for the Bonds, the Commission has been advised that it may be necessary to amend and/or supplement the Bond Resolution and the Commission hereby determines that agreeing to any such amendments and/or supplements is in the best interest of the City; and WHEREAS, the Commission hereby determines it to be in the best financial interest of the City to amend the definition of"Utilities Tax" set forth in Section 3 of Article I of the Original Resolution; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: SECTION 1. DEFINITIONS. That, except as provided below, all capitalized terms used in this Resolution not otherwise defined shall have the meanings ascribed to such terms in the Bond Resolution, unless the context clearly indicates otherwise. A. "Beneficial Owner" shall mean, for purposes of Section 6 of this Resolution only, any person which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (ii) is treated as the owner of any Bonds for federal income tax purposes. B. "NRMSIR" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The NRMSIRs currently approved by the Securities and Exchange Commission as of the date of adoption of this Resolution are as follows: \~wb-srv01\SANFORDS~399246v10\I 1/25/02\16787 011100 6 Resolution No. 90-02 Bloomberg Municipal Repositories P.O. Box 840 Princeton, NJ 08542-0840 Phone: (609) 279-3225 Fax: (609) 279-5962 Intemet: Munis~Bloomberg.com DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 Phone: (201) 346-0701 Fax: (201) 947-0107 Internet: Nrmsir~dpcdata. com Interactive Data Attn: Repository 100 Williams Street New York, NY 1003 8 Phone: (212) 771-6899 Fax: (212) 771-7390 E-mail: NRMSIR~interactivedata. com Standard & Poor's J. J. Kenny Repository 55 Water Street New York, NY 10041 Phone: (212) 438-4595 Fax: (212) 438-3975 E-mail: nrmsir_repository~sandp.com C. "Tax Certificate" shall mean the Arbitrage Certificate executed by the City on the date of initial issuance and delivery of the Bonds, as such Tax Certificate may be amended from time to time, a source of guidance for achieving compliance with the Code. D. "Utilities Tax" shall mean the tax imposed by the City on each and every purchase in the City of electricity, metered and bottled gas (natural liquified petroleum gas or manufactured). Said term shall also apply to all taxes imposed by the City on the purchase of utility services other than water and communication services, whether levied in the amounts prescribed by the Utilities Tax Ordinance or in any other amounts and whether imposed on the purchase of the same utilities services or any other or additional utilities services, by amendment \\wpb-srvOl\SANFORDSX399246vI0[11?25/02\16787011100 7 Resolution No. 90-02 to the Utilities Tax Ordinance. This definition shall be applicable to the Bonds and all pari passu additional Bonds issued pursuant to Article III, Section G of the Original Resolution. SECTION 2. PURPOSE AND BOND DESIGNATION. That the City hereby determines at this time (i) to issue not exceeding $16,500,000 in the initial aggregate principal amount of its Bonds for the purpose of (a) paying and defeasing the Refunded Bonds, (b) to pay the costs of issuance of the Bonds, including paying the premium for the Bond Insurance Policy and, if applicable, the Reserve Policy, and (ii) to designate such Bonds as its "Utilities Tax Revenue Refunding Bonds, Series 2002." SECTION 3. TERMS AND DETAILS OF BONDS. The terms and details of the Bonds, including but not limited to the principal amounts, interest rates, maturity dates and redemption provisions, shall be determined by the Mayor or Vice Mayor in accordance with the parameters set forth in Section 10 herein. SECTION 4. APPLICATION OF BOND PROCEEDS. All moneys received by the City from the sale of the Bonds originally authorized and issued pursuant to this Resolution, shall be disbursed as follows: A. The accrued interest, if any, derived from the sale of the Bonds, shall be deposited into the Interest Account, created and established under the Bond Resolution and continued hereunder, and used for the purpose of paying interest on the Bonds, as the same becomes due and payable. B. There is hereby created and established in the Acquisition/Construction Fund created and established under the 1994 Resolution, a separate line item to be known as the "2002 Cost of Issuance Cost Center," into which shall be deposited an amount of the proceeds of the Bonds sufficient to pay the costs of issuance of Bonds, including, but not limited to, payment ~x,~-,~o~s^NFoms~246vm~<25<02~6,87 om0o 8 Resolution No. 90-02 of the premium for the Bond Insurance Policy and, if applicable, the payment of the premium for the Reserve Policy. The City is hereby authorized to permit the Underwriter to pay directly to the Bond Insurer, from the proceeds of the Bonds, the cost of the Bond Insurance Policy and Reserve Policy, if any. If, for any reason, any of the moneys allocated to 2002 Cost of Issuance Cost Center, are not necessary for or are not applied to pay the costs of issuing the 2002 Bonds, then such surplus proceeds shall be deposited in the following order: First, to the Debt Service Reserve Account in the Sinking Fund created and established under the Original Resolution and, pursuant to the terms of this Resolution, continued for the Bonds, to the full extent necessary, either to reinstate any Reserve Account Credit Facility Substitute on deposit therein, including, but not limited to the Reserve Policy, if applicable, or, to deposit additional moneys so that such deposit, together with such moneys already on deposit therein, equals the Debt Service Reserve Requirement for the Bonds; Second, to the Interest Account, Principal Account or Bond Redemption Account in the Sinking Fund in the amounts, if any, determined by subsequent proceedings of the Commission; and Third, the balance, if any, to be used by the City for any lawful municipal purpose. C. From the proceeds of the Bonds, an amount which, together with any other moneys lawfully available therefor shall be deposited in the escrow deposit trust fund to be held by the Escrow Agent (as herein defined), under the terms and provisions of the Escrow Agreement, and such proceeds shall be held irrevocably in trust in the escrow deposit trust fund under the terms and provisions of the Escrow Agreement; such moneys shall be invested at the time of deposit in U. S. Obligations, which are not callable prior to maturity except by the holder \\wpb-$rv01\SANFOKDSk399246v10kl 1/25/02\16757011100 9 Resolution No. 90-02 thereof, the principal and interest of which shall be sufficient to pay the principal of and interest on the Refunded Bonds (other than the 1996 Bonds and 1998 Bonds) pursuant to the terms of the Escrow Agreement as provided therein. D. Unless, upon the advice of the Underwriter, the Debt Service Reserve Requirement (to the extent not satisfied with the moneys, investment securities and Reserve Account Credit Facility Substitute currently on deposit in the Debt Service Reserve Account in the Sinking Fund for the Bonds) shall be satisfied with a Reserve Account Credit Facility Substitute in the form of the Surety, from the proceeds of the Bonds there shall be deposited in the Debt Service Reserve Account in the Sinking Fund, an amount equal to the Debt Service Reserve Requirement for the Bonds, which requirement shall be determined at the time of the pricing of the Bonds. E. The balance of the proceeds derived fi.om the sale of the Bonds shall be immediately applied on the date of issuance and delivery of the Bonds to pay in full the outstanding 1996 Bonds and 1998 Bonds plus accrued interest to the date of payment. The proceeds of the sale of the Bonds other than amounts deposited in the Escrow Deposit Agreement and used to pay the 1996 Bonds and the 1998 Bonds pursuant to paragraph E above shall be and constitute trust funds for the purposes hereinabove provided, and there is already created a lien upon such moneys, until so applied, in favor of the Holders of the Bonds. SECTION 5. COVENANTS OF THE CITY. Except as provided herein, the Bonds authorized by this Resolution shall be deemed to have been issued pursuant to the Bond Resolution (to which this Resolution is supplemental) and all of the covenants and agreements contained in the Bond Resolution shall be deemed to have been made for the benefit of the Owners of the Bonds issued pursuant to this Resolution. \\wpb-$rv01\SANFORDS~399246vI0\I 1/25/02\16787 011100 10 Resolution No. 90-02 The Sinking Fund, the Principal Account, the Interest Account, the Bond Redemption Account therein and each Debt Service Reserve Account, all created and established under the Bond Resolution, shall be continued and maintained as provided in the Bond Resolution as long as any of the Bonds, issued pursuant to the terms and provisions of the Bond Resolution and this Resolution, are Outstanding. SECTION 6. RULE 15C2-12 UNDERTAKING. That in order to assist the initial purchasers of the Bonds with respect to compliance with the Rule, the City undertakes and agrees to provide the information described below to the persons so indicated. The City's Undertaking set forth in this Section 6 shall be for the benefit of the registered owners and Beneficial Owners of the Bonds. A. The City undertakes and agrees to provide to each NRMSIR and to the State of Florida information depository (herein, the "SID") if and when such a SID is created (i) the City's general purpose financial statements generally consistent with the financial statements presented in Appendix B to the official statement relating to the Bonds (herein the "Official Statement"), and (ii) the information concerning the Utilities Tax collections within the City with respect to electricity, gas and fuel oil, the Utilities Tax rate or rates, exemptions from the Utilities Tax and amendments to the Utilities Tax Ordinance generally consistent with the information set forth in the Official Statement under the heading "UTILITIES TAXES." The information referred to in clauses (i) and (ii) is herein collectively referred to as the "Annual Information." B. The Annual Information described in clause (i) of paragraph A above in audited form (for as long as the City provides such financial information in audited form) is expected to be available on or before March 31 of each year for the Fiscal Year ending on the preceding September 30, commencing March 31, 2003 for the Fiscal Year ending on the \\wb-srv01XSANFORDS~399246vI0\I 1/25/02\16787011100 1 1 Resolution No. 90-02 preceding September 30, 2002. The Annual Information referred to in clause (i) of paragraph A above in unaudited form (if the audited financial statements are not available or if the City no longer provides such financial information in audited form) will be available on or before March 31 for the Fiscal Year ending on the preceding September 30. The City also agrees to provide the Annual Information to each registered owner and Beneficial Owner of the Bonds who request such information and pays to the City its costs of reproduction and transmission of such Annual Information. The City agrees to provide to each NRMSIR and the SID, if any, timely notice of its failure to provide the Annual Information. Such notice shall also indicate the reason for such failure and when the City reasonably expects such Annual Information will be available. C. The Annual Information referred to in clause (i) of paragraph A above and presented as an appendix to the Official Statement has been prepared in accordance with governmental accounting standards promulgated by the Government Accounting Standards Board, as in effect from time to time, as such principles are modified by generally accepted accounting principles, promulgated by the Financial Accounting Standards Board, as in effect from time to time, and such other State mandated accounting principles as in effect from time to time. D. If, as authorized by paragraph F below, the City's undertaking with respect to paragraph C above requires amending, the City undertakes and agrees that the Annual Information described in clause (i) of paragraph A above for the Fiscal Year in which the amendment is made will, to the extent possible, present a comparison between the Annual Information prepared on the basis of the new accounting principles and the Annual Information prepared on the basis of the accounting principles described in paragraph C above. The City ~-,r~0~XS^~O~SU99246v~0~,~/~/0~X~*7S70m00 1 2 Resolution No. 90-02 agrees that such a comparison will, to the extent possible, include a qualitative discussion of the differences in the accounting principles and the impact of the change on the presentation of the Annual Information. E. The City undertakes and agrees to provide, in a timely manner, to each NRMSIR or to the Municipal Securities Rulemaking Board and to the SID, if any, notice of the occurrence of any of the following events with respect to the Bonds, if material: 1. principal and interest payment delinquencies; 2. non-payment related defaults; 3. unscheduled draws on any reserve account reflecting financial difficulties; 4. unscheduled draws on credit enhancements reflecting financial difficulties; 5. substitution of credit or liquidity providers, or their failure to perform; 6. adverse tax opinions or events affecting the tax-exempt status of the Bonds; 7. modifications to rights of Bondholders; 8. Bond calls (other than scheduled mandatory sinking fund redemptions); 9. defeasance of the Bonds; 10. release, substitution, or sale of property securing repayment of the Bonds; 1 1. rating changes; and \\wpb-srv0BSANFORDS~399246vI0\l 1/25/02\16787011100 1 3 Resolution No. 90-02 12. any failure to comply with the provisions of this Section 6, which in all cases, such failure will be deemed material. Notwithstanding the foregoing, notice of the events described in clauses (8) and (9) above need not be given any earlier than the time notice is required to be given to the registered owners of the Bonds. F. Notwithstanding any other provision of this Resolution or the Bond Resolution to the contrary regarding amendments or supplements, the City undertakes and agrees to amend and/or supplement this Section 6 (including the amendments referred to in paragraph D above) only iff 1. The amendment or supplement is made only in connection with a change in circumstances existing at the time the Bonds were originally issued that arises from (i) a change in law, (ii) SEC pronouncements or interpretations, (iii) a judicial decision affecting the Rule or (iv) a change in the nature of the City's operations or the activities that generate the Utilities Taxes. 2. The City's Undertaking, as amended, would have complied with the requirements of the Rule at the time the Bonds were originally issued after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and 3. The amendment or supplement does not materially impair the interests of the registered owners and Beneficial Owners of the Bonds as determined by Bond Counsel or by a majority of the registered owners of the Bonds. \\wb-srvOI~SANFORDS~399246vlO\]l/25/02\16787011100 14 Resolution No. 90-02 In the event of an amendment or supplement under this Section 6, the City shall describe the same in the next report of Annual Information and shall include, as applicable, a narrative explanation of the reason for the amendment or supplement and its impact, if any, on the financial information and operating data being presented in the Annual Information. G. The City's Undertaking as set forth in this Section 6 shall terminate if and when the Bonds are paid or deemed paid within the meaning of this Resolution. H. The City acknowledges that its Undertaking pursuant to the Rule set forth in this Section 6 is intended to be for the benefit of the registered holders and Beneficial Owners of the Bonds and shall be enforceable by such holders and Beneficial Owners; provided that, the holder's and Beneficial Owners' right to enforce the provisions of this Undertaking shall be limited to a right to obtain specific enforcement of the City's obligations hereunder, and any failure by the City to comply with the provisions of this Undertaking shall not be or constitute a covenant or monetary default with respect to the Bonds under this Resolution or the Bond Resolution. I. The City reserves the right to satisfy its obligations under this Section 6 through agents; and the City may appoint such agents without the necessity of amending this Resolution. The City may also appoint one or more employees of the City to monitor and be responsible for the City's Undertaking hereunder. SECTION 7. REDEMPTION PROVISIONS. The Bonds maturing on June 1, 2012, and thereafter are redeemable at the option of the City from any legally available source, in part, in any order of maturity selected by the City, at its discretion, and by lot within a maturity if less than an entire maturity is to be redeemed, on June 1,2011, or at any time thereafter, or as a whole, on June 1, 2011, or at any time thereafter, in either case, at the redemption prices \\wpb-srv01\SANFORDS~99246v10\ll/25/02\16787011100 15 Resolution No. 90-02 (expressed as percentages of the principal amount to be redeemed) set forth below, together with accrued interest to the date fixed for redemption: Redemption Period (Both dates inclusive) June 1, 2011 to May 31, 2012 June 1, 2012 and thereafter Redemption Price 101% 100% Notwithstanding the foregoing, if the City's Underwriter, upon consultation with the Finance Director of the City, determines that market conditions require different or no optional redemption provisions for the Bonds or for certain maturities of the Bonds, such different optional redemption provisions or the exclusion of certain or all maturities of the Bonds from such optional redemption provisions will be deemed approved by the City upon the execution of the Purchase Contract so long as the maximum redemption premium does not exceed 2% and the first optional redemption period is not more than eleven (11) years from the date of issuance of the Bonds. That the Bonds which are Term Bonds shall also be subject to mandatory sinking fund redemption prior to maturity by lot, in such manner as the Registrar (as defined herein) may deem appropriate, on June 1, in such years, at a price of par plus accrued interest to the date of redemption, in the annual amounts established pursuant to the parameter set forth in Section 10 hereof. Notice of redemption of the Bonds shall be mailed, postage prepaid, by the Registrar not less than thirty (30) days before the date fixed for redemption to the registered owners of any Bonds or portions of Bonds which are to be redeemed, at their addresses as they appear fifteen (15) days prior to the date such notice is mailed on the registration books of the City kept by the Registrar. \\wpb-$rv0[\SANFORDS~399246v10\l 1/25/02\16787 011100 1 6 Resolution No. 90-02 The Registrar also shall mail (by certified mail, return receipt requested) a copy of such notice for receipt not less than the second business day prior to the date notice of redemption is mailed to the Bondholders to the following (or most current address): The Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530; Midwest Securities Trust Company, Capital Structures - Call Notification, 440 South LaSalle Street, Chicago, Illinois 60605; Philadelphia Depository Trust Company, Reorganization Division, 1900 Market Street, Philadelphia, Pennsylvania 19103; Attention: Bond Department; provided, however, that such mailing shall not be a condition precedent to such redemption and failure to mail any such nbtice shall not affect the validity of any proceedings for the redemption of the Bonds. The Registrar shall also provide notice, at the same time notice of redemption is given to the Bondholders, to Kenny Information Systems Notification Service, 65 Broadway, 16th Floor, New York, New York 10006, and Standard & Poor's Called Bond Record, 25 Broadway, New York, New York 10004; provided, however, that such mailing shall not be a condition precedent to such redemption and failure to mail any such notice shall not affect the validity of any proceedings for the redemption of the Bonds. A second notice of redemption shall be given sixty (60) days after the redemption date in the manner required above to the registered owners of redeemed Bonds which have not been presented for payment within thirty (30) days after the redemption date. Such notice of redemption shall set forth (i) the date fixed for redemption, (ii) the redemption price to be paid, (iii) that such Bonds will be redeemed at the designated corporate trust office of the Paying Agent (as herein defined), and the name, address and telephone number of a contact person, (iv) if less than all of the Bonds shall be called for redemption, the distinctive numbers, letters and CUSIP identification numbers, if any, of such Bonds to be \\wpb-$rv01\SANFORDS~399246vI0\I 1/25/02\16787 011100 1 7 Resolution No. 90-02 redeemed, (v) in the case of Bonds to be redeemed in part only, the portion of the principal amount thereof to be redeemed, and (vi) any other information the City or the Registrar deems relevant. In case any Bond is to be redeemed in part only, the notice of redemption that relates to such Bond shall state also that on or after the redemption date, upon surrender of the Bond, a new Bond or Bonds of the same maturity, bearing interest at the same rate and in aggregate principal amount equal to the unredeemed portion of such Bond, will be issued. Failure of the registered owner of any Bonds which are to be redeemed to receive any such notice shall not affect the validity of the proceedings for the redemption of Bonds for which proper notice has been given. Interest shall cease to accrue on any of the Bonds duly called for prior redemption if payment of the redemption price has been duly made or provided for. Notwithstanding any of the foregoing, no notice of redemption that relates to the Bonds shall be given unless there are sufficient moneys for such redemption on deposit in the Principal Account, Interest Account or Bond Redemption Account, as applicable, of the Sinking Fund or unless such redemption shall be paid for with the proceeds of refunding Bonds or from amounts provided by the Bond Insurer in its sole discretion. SECTION 8. NEGOTIATED SALE. That the City hereby finds that, due to the complicated nature of the financing, volatile market conditions, the need to issue the Bonds upon the most favorable market conditions and the advice of its financial advisor that it would be in the best interest of the City that the Bonds be sold on a negotiated basis. SECTION 9. APPOINTMENT OF UNDERWRITER. That the City hereby appoints Bear Steams & Co., Inc. as the Underwriter of the Bonds pursuant to the terms and provisions of the Purchase Contract. \\wpb-srv01\SANFORDSX399246v10\l 1/25/02\16787 011100 18 Resolution No. 90-02 SECTION 10. PARAMETERS FOR THE SALE OF THE BONDS. That the proposal submitted by the Underwriter offering to purchase the Bonds at a purchase price for the Bonds established pursuant to the parameters set forth below and on the terms and conditions set forth in the Purchase Contract (substantially in the form attached hereto as Exhibit B), is hereby approved and adopted by the City. Subject to the last sentence of this Section 6, the Mayor (or, in his absence, the Vice Mayor) is hereby authorized to execute and deliver on behalf of the City, and the City Clerk is hereby authorized (if so required) to affix the Seal of the City and attest to the execution of the Purchase Contract in substantially the form presented at this meeting. The disclosure statements of the Underwriter, as required by Section 218.385 of the Florida Statutes, to be delivered to the City prior to the execution of the Purchase Contract, a form of which is attached as an exhibit to the Purchase Contract, will be entered into the official records o£ the City as part o£ the Purchase Contract. The Purchase Contract, when in final form as determined by the City Attorney and Bond Counsel, may be executed by the City without further action of the City, provided the Underwriter confirms in writing to the Finance Director, or in his absence, the Treasurer o£ the City that (i) the true interest cost on the Bonds does not exceed five percent (5%) per annum, (ii) the underwriting discount (exclusive of any original issue discount or original issue premium) is not greater than $6.00 per $1,000 of the original principal amount of the Bonds, (iii) the initial principal amount of Bonds sold thereunder does not exceed the principal amount authorized under this Resolution, (iv) the final maturity of the Bonds does not extend beyond June 1, 2016, and (v) the net present value savings for paying and defeasing the Refunded Bonds shall not be less than three percent (3%). The final terms and provisions of the Bonds shall be affixed as an exhibit to this Resolution and entered into the records of the Commission. \~wpb-$rv01~SANFORDSX399246v10\l 1/25/02\16787 0Il100 1 9 Resolution No. 90-02 SECTION 11. PRELIMINARY AND OFFICIAL STATEMENT. That the form of the Preliminary Official Statement in substantially the form attached hereto as Exhibit C with such changes as shall be approved by the Mayor or the City manager and the City's Bond Counsel, be and the same is hereby approved, and the Commission hereby approves the use of the final printed Official Statement by the Underwriter in connection with the offering and sale of the Bonds in substantially the same form as the attached Preliminary Official Statement. The Commission hereby further approves the use by the Underwriter of any supplement or amendment to the Official Statement which is necessary so that the Official Statement does not include any untrue statement of a material fact and does not omit to state any material fact necessary to make the statements therein not misleading. The Mayor (or, in his absence, the Vice Mayor) is each hereby authorized and directed to execute the Official Statement and any amendment or supplement thereto, in the name and on behalf of the City, and thereupon to cause the Official Statement and any such amendment or supplement to be delivered to the Underwriter with such approval to be conclusively evidenced by his execution and delivery thereof. The Underwriter is hereby authorized to use the Preliminary Official Statement in connection with the marketing of the Bonds. The Mayor, the Vice Mayor, the City Manager, the Director of Finance and the Treasurer are each authorized to execute a certificate deeming the Preliminary Official Statement "final" within the meaning of the Rule. Notwithstanding the foregoing, the Official Statement with respect to the Bonds shall not be executed prior to the date the Purchase Contract, is executed in the manner contemplated in Section 10 herein and the form thereof is approved by Bond Counsel and the City Attorney. SECTION 12. PAYING AGENT AND REGISTRAR. That Wells Fargo Bank, National Association is hereby appointed as paying agent (the "Paying Agent") and \\wpb-$rv01\SANFORDS~399246v10\11/25/02\167870Il100 20 Resolution No. 90-02 registrar (the "Registrar") for the Bonds. By the acceptance of such appointment, Wells Fargo Bank, National Association agrees to comply with the terms of the Paying Agent and Registrar Agreement (as herein defined), the Bond Resolution, this Resolution, and the Bond Insurance Policy and the Reserve Policy, if any, applicable to it. The Paying Agent and Registrar agree to provide to the Bond Insurer copies of all notices and reports relating to the City or the Bonds received by it or which either is required to be sent to the City or the registered owners of the Bonds. SECTION 13. BOOK ENTRY BONDS. That the Commission hereby determines that the registration of the Bonds be by the Book Entry System of registration. SECTION 14. APPOINTMENT OF ESCROW AGENT. That Wells Fargo Bank, National Association, having its designated corporate trust office in Coral Springs, Florida, is hereby as Escrow Agent under the Escrow Agreement. SECTION 15. APPROVAL AND EXECUTION OF THE ESCROW AGREEMENT. That the form of the Escrow Deposit Agreement (the "Escrow Agreement") expected to be dated as of December 1, 2002, by and between the City and the Escrow Agent, and in substantially the form presented at this meeting (and attached hereto as Exhibit A) is hereby approved, subject to and with such changes therein as shall be approved by the Mayor (or in his absence, the Vice Mayor), such approval to be evidenced conclusively by the execution of said Escrow Agreement; either the Mayor or the Vice Mayor of the City is hereby authorized and directed on behalf of the City to execute and deliver said Escrow Agreement; that the City Clerk hereby is authorized, on behalf of the City, to attest and impress the seal of the City on, said Escrow Agreement; and that said officers and all other officers of the City are hereby authorized \\wpb-$rv01kSANFORDS~399246v10\l 1/25/02\16787011100 2 1 Resolution No. 90-02 and directed to carry out or cause to be carded out all obligations of the City under said Escrow Agreement. SECTION 16. BOND INSURANCE POLICY AND RESERVE POLICY. That, based on the recommendations of the City's financial advisor, set forth in a letter attached hereto as Exhibit D with respect to the Bonds, the Commission finds that obtaining the Bond Insurance Policy and Reserve Policy (to be determined on or before the Purchase Contract is executed) from the Bond Insurer is in the best interests of the City, and the Commission hereby directs that the premium due on the Bond Insurance Policy and the Reserve Policy, if applicable, be paid in accordance with the terms thereof. The City covenants to comply with the terms and provisions of the Bond Insurer's commitment to provide the Bond Insurance Policy and Reserve Policy and covenants to comply with the payment procedures with respect to the Bond Issuance Policy. SECTION 17. INSURANCE AGREEMENT. That the form, terms and provisions of the Insurance Agreement between the City and Financial Security Assurance, Inc. substantially in the form attached hereto as Exhibit F, as submitted to this meeting, be and the same are hereby approved and accepted. If the Surety is purchased by the City, the Mayor of the City or, in his absence, the Vice Mayor, is hereby authorized and directed to execute and deliver the Insurance Agreement on behalf of the City in substantially the form submitted to this meeting, with such changes, insertions and deletions thereto as are necessary or desirable for carrying out the purposes thereof as may be approved by the City Attorney and Bond Counsel, the execution of said Insurance Agreement being conclusive evidence of such approval. SECTION 18. AMENDMENTS AND SUPPLEMENTS TO ORIGINAL RESOLUTION. Notwithstanding any provision in the Original Resolution to the contrary, as a \\wpb-srv01\SANFOKD$~99246v10[l 1/25/02\16787 011100 22 Resolution No. 90-02 condition of obtaining the Bond Insurance and Reserve Policy, if applicable, and for as long as the Bond Insurer is not in default under the Bond Insurance Policy and/or Reserve Policy, if applicable, the City covenants as follows: (i) not to issue pad passu additional Bonds pursuant to Article III, Section 4.G. of the Original Resolution, that bear interest at a variable rate without the express written consent of the Bond Insurer, (ii) not to optionally redeem the Bonds or use any portion of the proceeds of the Utilities Tax for general municipal purposes if amounts are due and owing the Bond Insurer under the Insurance Agreement, if applicable. In the event that the City obtains more than one Reserve Account Credit Facility Substitute for the Bonds, one of which is the Reserve Policy, the Paying Agent shall, if moneys are required therefrom, to draw on such Reserve Account Credit Facility Substitutes on a pro rata basis. At any time amounts on deposit in the Debt Service Reserve Account is less than the Debt Service Reserve Requirement and the Reserve Policy has been drawn on, the City covenants to apply the first available proceeds of the Utilities Tax to reimburse the Bond Insurer thereby reinstating the Reserve Policy prior to making any cash deposits to the Debt Service Reserve Account to cure such deficiency. In addition, to the extent that the terms and provisions of the Commitment attached hereto as Exhibit E are not reflected in the Bond Resolution or this Resolution, the City agrees to comply with such terms as if set forth herein. SECTION 19. AMENDMENTS TO ORIGINAL RESOLUTION AND 1994 RESOLUTION. (a) The definition of "Permitted Investments" set forth in the Original Resolution is hereby amended to read as follows: "Permitted Investments" shall mean (i) to the extent permitted by law, U.S. Obligations and (ii) all other investments permitted under the laws \\wpb-srvOl\SANFORDS~399246v10\l 1/25/02\16787 011100 23 Resolution No. 90-02 of Florida that are permitted under the City's adopted investment policies and acceptable to any Credit Facility Issuer. (b) The Commission hereby determines to treat the Debt Service Reserve Account established under the Original Resolution and continued under the 1994 Resolution for the 1992 Bonds and the 1994 Bonds as the Debt Service Reserve Account for the Bonds, notwithstanding anything to the contrary set forth in the Bond Resolution. (c) Any amount necessary to satisfy the Debt Service Reserve Requirement for any pari passu additional Bonds issued pursuant to the Original Resolution which will share in the Debt Service Reserve Account relating to the Bonds shall be funded in full at the time such pari passu additional Bonds are issued, notwithstanding any provision in the Original Resolution to the contrary. (d) The amount of the Debt Service Reserve Requirement for the Bonds and any pari passu additional Bonds issued pursuant to the Original Resolution which will share in the Debt Service Reserve Account relating to the Bonds shall be determined pursuant to the first sentence of the definition of the Debt Service Reserve Requirement set forth in the Original Resolution. SECTION 20. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions of this Resolution should be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or provisions, and shall in no way affect the validity of any of the other provisions of this Resolution or of the Bonds. \\wb-$rv01~SANFORDS~399246v]0\l 1/25/02\16787 011100 24 Resolution No. 90-02 SECTION 21. FURTHER AUTHORIZATIONS; RATIFICATION OF PRIOR ACTS. That the Mayor, the Vice Mayor, the City Manager, the Finance Director, the Treasurer, the City Clerk, the City Attorney and any other authorized official of the City, be and each of them is hereby authorized and directed to execute and deliver any and all documents and instruments, including, but not limited to, any paying agent and registrar agreement, and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by this Resolution, including, but not limited to, complying with any conditions to obtain the Bond Insurance Policy or Reserve Account Credit Facility Substitute. All actions heretofore taken and documents prepared or executed by or on behalf of the City by any of its authorized officers in connection with the transactions contemplated hereby including, without limitation, the subscription for the purchase of United States Treasury Obligations - State and Local Government Series ("SLGs") for deposit and application to effect the payment and defeasance of the Refunded Bonds, are hereby ratified, confirmed, approved and adopted. SECTION 22. REPEALER. thereof, in conflict with the provisions of this hereby repealed. SECTION 23. EFFECTIVE DATE. immediately upon its passage. That all resolutions or proceedings, or parts Resolution are to the extent of such conflict That this Resolution shall take effect \\wpb-srv01\SANFORDSX399246vI0\ll/25/02\16787 011100 25 Resolution No. 90-02 PASSED AND ADOPTED in regular session on this the 3rd day of December, 2002. CITY OF DELRAY BEACH, FLORIDA Attest: By: Mawr City Clerk Date of Adoption: December 3, 2002 The foregoing Resolution is hereby approved by me as to form, language and execution this 3rd day of December, 2002. By: City Attorney \\wpb-$rv01\SANFORDS~399246v10\11/25/02\16787 011100 26 Resolution No. 90-02 City of Delray Beach, Florida Utilities Tax Revenue Refunding Bonds, Series 2002 LIST OF EXHIBITS TO RESOLUTION NO. 90-02 Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Escrow Deposit Agreement Bond Purchase Agreement Draft Preliminary Official Statement Letter of Recommendation from Public Financial Management Commitment for Bond Insurance and Reserve Policy from Financial Security Assurance, Inc. Insurance Agreement \\wpb-srv0BSANFORDSX399246vI0\I1/26/02\16787 011100 Resolution No. 90-02 Exhibit A CITY OF DELRAY BEACH, FLORIDA and Wells Fargo Bank, National Association as Escrow Agent ESCROW DEPOSIT AGREEMENT DATED AS OF DECEMBER 1, 2002 \\wpb-srv01 \SANFORDS~399656v08\ 11/25/02\16787 011 I00 THIS ESCROW DEPOSIT AGREEMENT, made and entered into as of December 1, 2002, by and between the CITY OF DELRAY BEACH, FLORIDA, a municipal corporation of the State of Florida, and its successors and assigns (the "City"), and Wells Fargo Bank, National Association, a national banking association duly organized and existing under the laws of the United States with a corporate trust office in Coral Springs, Florida, as escrow agent hereunder, and its successors and assigns (the "Escrow Agent"): WITNESSETH: WHEREAS, any term not defined in the following recitals shall have the meaning ascribed to such term in Article I hereof; and. WHEREAS, the City Commission of the City of Delray Beach, Florida (the "Commission") did, on December 3, 1991, adopt Resolution No. 98-91, as amended and supplemented by Resolution No. R-27-94 and Resolution No. R-54-95 (collectively, the "Original Resolution"); and WHEREAS, the Original Resolution was supplemented by the Commission on December 3, 2002, by the adoption of Resolution No. 90-02 (the "2002 Bond Resolution"), for the purpose of authorizing a Series of Bonds under the Original Resolution and the 2002 Bond Resolution entitled "City of Delray Beach, Florida Utilities Tax Revenue Refunding Bonds, Series 2002 (the "Series 2002 Bonds"), in the initial aggregate principal amount of not exceeding $16,500,000; and WHEREAS, the Commission has determined it to be in its best interest to issue the Series 2002 Bonds in an initial aggregate principal amount of $ for the purpose of paying and defeasing the 1992 Bonds, the 1994 Bonds and the 1995 Bonds, as such terms are defined in the 2002 Bond Resolution (herein, collectively, the "Refunded Bonds") pursuant to the terms of the Original Resolution, the 2002 Bond Resolution and this Agreement; and WHEREAS, the Original Resolution provides that, among other things, all Refunded Bonds shall, prior to the maturity or redemption date thereof, be deemed to have been paid within the meaning of such resolution if there is deposited moneys or Defeasance Obligations (as such term is defined in the Original Resolution) which such term includes direct obligations, the payment of principal and interest on which is fully and unconditionally guaranteed by the United States of America (the "U.S. Obligations"), the principal of and the interest on which when due will provide moneys which, together with any other moneys deposited with the Escrow Agent, shall be sufficient to pay such Refunded Bonds, the interest thereon and the redemption premium, if any, as the same shall become due on the Refunded Bonds on or prior to the redemption date or maturity date thereof; and WHEREAS, the Commission has determined it to be in the best economic interest of the City to pay and defease the Refunded Bonds as more particularly described on Schedule A attached hereto, all in accordance with the terms and provisions of the Original Resolution, the 2002 Bond Resolution and this Agreement; and \\wpb-$rvO 1 \SANFORDS~399656v08\ 11/25/02\16787 Ol 1100 WHEREAS, the City has determined to provide for the payment of the Refunded Bonds by depositing a portion of the proceeds from the Series 2002 Bonds, together with certain other lawfully available moneys, which shall be used in part to purchase U.S. Obligations, which U.S. Obligations and money shall be sufficient, as verified by Causey Demgen & Moore, Inc. in a letter dated December __, 2002, to pay the interest on the Refunded Bonds, as the same becomes due and payable fi.om the date of this Agreement, and to pay the outstanding principal amounts of the then outstanding Refunded Bonds on such dates, together with interest thereon and a redemption premium of two percent (2%) of the principal amount of the Refunded Bonds, which are subject to optional redemption pursuant to the Original Resolution and this Agreement; and WHEREAS, in order to provide for the proper and timely application of the moneys deposited in the trust created herein, the maturing principal amount of the U.S. Obligations purchased thereby, and investment income and earnings derived therefrom to the payment of the Refunded Bonds, it is necessary for the City to enter into this Escrow Deposit Agreement with the Escrow Agent on behalf of the holders from time to time of the Refunded Bonds. NOW, THEREFORE, the City, in consideration of the foregoing and the mutual covenants herein set forth and in order to secure the payment of the principal of, redemption premium, if any, and interest on all of the Refunded Bonds, according to their tenor and effect, does by these presents hereby grant, warrant, demise, release, convey, assign, transfer, alienate, pledge, set over and confirm, unto the Escrow Agent, and to its successors in the trusts hereby created, and to it and its assigns forever, all and singular the property hereinafter described to wit: DIVISION I All right, title and interest of the City in and to $ derived from the proceeds of the sale of the Series 2002 Bonds and $__ derived from the liquidation of certain moneys currently reserved to pay the Refunded Bonds (the "Transferred Moneys"). DIVISION II All right, title and interest of the City in and to all income, earnings and increment derived from or accruing to the U.S. Obligations purchased from the money (except for certain uninvested cash balances) described in Division I hereof and more particularly described in Schedule B attached hereto and made a part hereof. DIVISION III Any and all other property of every kind and nature from time to time hereafter, by delivery or by writing of any kind, conveyed, pledged, assigned or transferred as and for additional security hereunder by the City or by anyone in its behalf to the Escrow Agent, which is hereby authorized to receive the same at any time as additional security hereunder. ~\v~pb'srvO I \SANFORDSXJ99656v08\I 1/25/02\16787 O l 1100 2 DIVISION IV All property which is by the express provisions of this Agreement required to be subject to the pledge hereof and any additional property that may, from time to time hereafter, by delivery or by writing of any kind, be subject to the pledge hereof, by the City or by anyone in its behalf, and the Escrow Agent is hereby authorized to receive the same at any time as additional security hereunder. TO HAVE AND TO HOLD, all and singular, the Trust Estate (as such term is hereinafter defined), including all additional property which by the terms hereof has or may become subject to the encumbrances of this Agreement, unto the Escrow Agent, and its successors and assigns, forever in trust, however, for the benefit and security of the holders from time to time of the Refunded Bonds; but if the Refunded Bonds shall be fully and promptly paid when due in accordance with the terms thereof and hereof and all other obligations are performed hereunder, then this Agreement shall be and become void and of no further force and effect; otherwise, the same shall remain in full force and effect, and upon the trusts and subject to the covenants and conditions hereinafter set forth. ARTICLE I DEFINITIONS; FINDINGS AND DETERMINATIONS BY THE AUTHORITY SECTION 1.01 Definitions. In addition to words and terms elsewhere defined in this Agreement, the following words and terms as used in this Agreement shall have the following meanings, unless some other meaning is plainly intended. "Act" shall have the meaning ascribed to such term in the Original Resolution. "Agreement" shall mean this Escrow Deposit Agreement, dated as of December 1, 2002, between the City and the Escrow Agent. "Annual Debt Service" shall mean, as to the Refunded Bonds, principal called, redemption premium and interest coming due in each year, as shown on Schedule C attached hereto and hereby made a part hereof. "Paying Agent for the Refunded Bonds" shall mean the entity identified as such in Section 3.08 hereof. "Total Debt Service" shall mean, as of any date during the period from the date of this Agreement until June 1, 2004, the sum of the Annual Debt Service then remaining unpaid with respect to the Refunded Bonds, all as shown on Schedule C attached hereto and hereby made a part hereof. "Trust Estate," "trust estate" or "pledged property" shall mean 'the property, rights and interest of the City which are subject to the lien of this Agreement. "U.S. Obligations" shall mean non-callable, non-prepayable, direct obligations of, or non-callable, non-prepayable obligations the principal of and interest on which are fully and unconditionally guaranteed by, the United States of America, constituting part of the Trust \\wpb-srv01~SANFORDS~99656v08[l 1/25/02\16787 011100 3 Estate. The initial U.S. Obligations are described in Schedule B attached hereto. U.S. Obligations shall not include investments in mutual funds or unit investment trusts. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Words importing the singular number shall include the plural number and vice versa unless the context shall otherwise indicate. The word "person" shall include corporations, associations, natural persons and public bodies unless the context shall otherwise indicate. Reference to a person other than a natural person shall include its successors. ARTICLE II ESTABLISHMENT OF TRUST FUND; FLOW OF FUNDS SECTION 2.01 Creation of Escrow Deposit Trust Fund. There is hereby created and established with the Escrow Agent a special and irrevocable trust fund designated the Escrow Deposit Trust Fund (the "Trust Fund"), to be held in the custody of the Escrow Agent and accounted for separate and apart from other funds of the City or of the Escrow Agent. SECTION2.02 Deposit of Moneys and Payment of Refunded Bonds. Concurrently with the execution of this Agreement, the City herewith deposits or causes to be deposited with the Escrow Agent into the Trust Fund, and the Escrow Agent acknowledges receipt of $__ derived from a portion of the proceeds of the Series 2002 Bonds and the Transferred Moneys, to be used in part to purchase the U.S. Obligations, as described on Schedule B in the maturing principal mount of $ ., and the balance of such deposit in the amount of $ shall be held as immediately available moneys. The purchase of the U.S. Obligations and cash being derived from a portion of the proceeds of the Series 2002 Bonds and the Transferred Moneys deposited into the Trust Fund will, according to the opinion of Causey Demgen & Moore, Inc., set forth in its letter dated December __, 2002, provide moneys sufficient to pay the Total Debt Service on the Refunded Bonds. Money representing beginning cash balances and any other moneys not directed to be invested hereunder shall remain uninvested until applied in accordance with the terms hereof. SECTION 2.03 Irrevocable Trust Created. The deposit of the cash and U.S. Obligations in the Trust Fund shall constitute an irrevocable deposit of said cash and U.S. Obligations for the benefit of the holders of the Refunded Bonds, except as provided herein with respect to substitutions permitted under Section 2.05 hereof and amendments permitted under Section 4.01 hereof. The holders of the Refunded Bonds shall have a lien on the principal of and earnings on the U.S. Obligations and the cash deposited in the Trust Fund until applied in accordance with this Agreement and the applicable terms and provisions of the Original Resolution. SECTION 2.04 Purchase of U.S. Obligations. The City hereby directs the Escrow Agent to immediately purchase and the Escrow Agent hereby acknowledges the purchase of the U.S. Obligations listed on Schedule B from the moneys transferred to the Escrow Agent from the City in the manner described in Section 2.02 hereof. The Escrow Agent shall apply the moneys deposited in the Trust Fund and the aforementioned U.S. Obligations, together with all income or earnings thereon, if any, in accordance with the provisions hereof and the \\wpb-srv01 \SANFORDSk399656v08\ 11/25/02\16787 011100 4 Original Resolution. The Escrow Agent shall have no power or duty to invest or reinvest any moneys held hereunder or to make substitutions of the U.S. Obligations held hereunder or to sell, transfer or otherwise dispose of the U.S. Obligations acquired hereunder except as provided in this Agreement. SECTION 2.05 Failure to Deliver Initial U.S. Obligations. In the event that the underwriter for the Series 2002 Bonds (the "Underwriter") shall be unable to deliver any of the U.S. Obligations, as set forth in Schedule B (the "Initial U.S. Obligations") hereto, at the time of delivery of the Series 2002 Bonds, the Escrow Agent is hereby authorized to accept other U.S. Obligations (the "Substitute Securities") and/or cash in substitution for the Initial U.S. Obligations. Such substitution is subject to receipt by the City and the Escrow Agent of an independent verification by a nationally recognized certified public accounting firm acceptable to Greenberg Traurig, P.A. that the Substitute Securities and/or cash, together with any other U.S. Obligations and cash on deposit with the Escrow Agent, will be sufficient, without reinvestment, to meet the requirements for payment of the principal of, premium, if any, and interest on the Refunded Bonds in accordance with the terms of this Agreement. At any time prior to maturity of the Substitute Securities and/or cash, the City shall have the ability in writing to direct the Escrow Agent to exchange any of the Substitute Securities and/or cash delivered by the Underwriter for all or any part of the Initial U.S. Obligations. However, such exchange will be subject to the receipt by the City and the Escrow Agent of an independent verification by a nationally recognized independent certified public accounting firm acceptable to Greenberg Traurig, P.A. to the effect that the substitution of the Substitute Securities and/or cash for the Initial U.S. Obligations will be sufficient, without reinvestment, to meet the requirements for payments of principal of, premium, if any, and interest on the Refunded Bonds in accordance with the terms of this Agreement and the applicable provisions of the Original Resolution. Further, such independent verification report must indicate that the return of monies (generated by such Substitute Securities), in excess of the monies that would have been received on the Initial U.S. Obligations, to the Underwriter for the Series 2002 Bonds are not needed to pay the principal of, premium, if any, and interest on the Refunded Bonds when due in accordance with this Agreement and the applicable provisions of the Original Resolution. In addition, such return of the Substitute Securities and/or cash and any excess monies will not, as evidenced by an opinion from Greenberg Traurig, P.A. to the effect that, under the statutes, rules and regulations then in force and applicable to obligations issued on the date of issuance of the Refunded Bonds and under the Internal Revenue Code of 1986, as amended (the "Code"), cause the interest on the Series 2002 Bonds or the Refunded Bonds not to be excluded from gross income for federal income tax purposes and such investment is not inconsistent with the statutes and regulations applicable to the Series 2002 Bonds or the Refunded Bonds. SECTION 2.06 Transfers from Trust Fund. As the principal of the U.S. Obligations listed in Schedule B matures and is paid, and the investment income and earnings thereon, if any, are paid, the Escrow Agent shall, no later than each interest payment date and principal payment date for the Refunded Bonds transfer from the Trust Fund, in accordance with the schedule of payments described in Schedule C attached hereto, to the Paying Agent for the Refunded Bonds an amount sufficient to pay the principal of, redemption premium and interest on the Refunded Bonds coming due on such interest payment date or principal payment date. The Escrow Agent has relied on the opinion of Causey Demgen & Moore, Inc., set forth in its letter dated ,2002, that the amount of money and securities on deposit herein and as \\wpb-srv0 I~SAN~ORDS~399656v08\l 1/25/02\16787 011100 5 reinvested in accordance with the terms hereof will be sufficient to pay Total Debt Service on the Refunded Bonds, and the Escrow Agent shall have no responsibility for an insufficiency of such amounts to pay Total Debt Service, provided the Escrow Agent performs in accordance with the provisions hereof. SECTION 2.07 Investment of Moneys remaining in Trust Fund. Subject to the requirements of this Section 2.07, the Escrow Agent shall, as directed in writing by the City, invest and reinvest any moneys remaining from time to time in the Trust Fund, until such time as they are needed. Such moneys shall be reinvested in direct obligations of, or obligations fully guaranteed by, the United States of America for such periods or at such interest rates or yields that the Escrow Agent shall be directed in writing to invest by the City, which securities or periods or interest rates or yields shall be set forth in an opinion to the City from Greenberg Traurig, P.A., which opinion shall also be to the effect that such reinvestment of such moneys will not, under the statutes, rules and regulations then in force and applicable to obligations issued on the dates of issuance of the Refunded Bonds and the Series 2002 Bonds and under the Code, cause the interest on the Series 2002 Bonds or the Refunded Bonds not to be excluded from gross income for federal income tax purposes and that such investment is not inconsistent with the statutes and regulations applicable to the Series 2002 Bonds or the Refunded Bonds. Such reinvestment of moneys is subject to receipt by the City of an independent verification by a nationally recognized independent certified public accounting firm acceptable to Greenberg Traurig, P.A. Any interest income resulting from reinvestment of moneys, pursuant to this Section 2.07 shall be promptly transferred to the City and used for any purpose permitted under the Original Resolution, if such verification report indicates that such interest income is not needed for the purposes contemplated by this Agreement, provided that the Escrow Agent shall have no responsibility for the proper use by the City of money transferred to the City by the Escrow Agent. SECTION 2.08 Trust Fund. The Trust Fund created and established pursuant to this Agreement shall be and constitute a trust fund for the purposes provided in this Agreement and shall be kept separate and distinct from all other funds of the City and the Escrow Agent and used only for the purposes and in the manner provided in this Agreement. SECTION2.09 Transfer of Funds after all Payments Required by this Agreement are Made. After all of the transfers by the Escrow Agent to the Paying Agent for the Refunded Bonds for the payment of the Total Debt Service on the Refunded Bonds have been made, all remaining moneys and U.S. Obligations, together with any income and interest thereon, in the Trust Fund shall be transferred to the City by the Escrow Agent; provided, however, that no such transfer (except transfers made in accordance with Sections 2.07 and 4.01 hereof) to the City shall be made until the Total Debt Service on the Refunded Bonds has been paid. ARTICLE III CONCERNING THE ESCROW AGENT SECTION 3.01 Appointment of Escrow Agent. The City hereby appoints Wells Fargo Bank, National Association, having a corporate trust office in Coral Springs, Florida, as Escrow Agent under this Agreement. \\wpb-$rv0 I~SANFORDS~399656v08\ 11/25/02\16787 011100 6 SECTION 3.02 Acceptance by Escrow Aeent. By execution of this Agreement, the Escrow Agent accepts the duties and obligations as Escrow Agent hereunder. The Escrow Agent further represents that it has all requisite power, and has taken all corporate actions necessary, to execute the trust hereby created. SECTION 3.03 Liability of Escrow Agent. The Escrow Agent shall not be liable in connection with the performance of its duties hereunder except for its own negligence or willful misconduct. The Escrow Agent shall not be liable for any loss resulting from any investment made pursuant to the terms and provisions of this Agreement. The Escrow Agent shall have no lien, security interest or fight of set-off whatsoever upon any of the moneys or investments in the Trust Fund for the payment of fees and expenses for services rendered by the Escrow Agent under this Agreement. As long as the Escrow Agent applies (by transfer to the Paying Agent for the Refunded Bonds) any moneys, the U.S. Obligations and the interest earnings, if any, therefrom to pay the Refunded Bonds, as provided herein, and complies fully with the terms of this Agreement, the Escrow Agent shall not be liable for any deficiencies in the amounts necessary to pay the Refunded Bonds. Further, the Escrow Agent shall not be liable for the accuracy of the calculations as to the sufficiency of moneys and of the principal amount of the U.S. Obligations, and the earnings, if any, thereon, to pay the Refunded Bonds. In the event of the Escrow Agent's failure to account for any of the U.S. Obligations or moneys received by it, said U.S. Obligations or moneys shall be and remain the property of the City in trust for the holders of the Refunded Bonds, as herein provided, and if for any improper reason such U.S. Obligations or moneys are not applied as herein provided, the Escrow Agent shall be liable for the amount thereof until the required application shall be made. Whenever the Escrow Agent shall deem it necessary or desirable that a matter be proved or established prior to taking, suffering or omitting any action under this Agreement, such matter may be deemed to be conclusively established by a certificate signed by an authorized officer of the City. The Escrow Agent may conclusively rely, as to the correctness of statements, conclusions and opinions therein, upon any certificate, report, opinion or other document furnished to the Escrow Agent pursuant to any provision of this Agreement; the Escrow Agent shall be protected and shall not be liable for acting or proceeding, in good faith, upon such reliance; and the Escrow Agent shall be under no duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument. The Escrow Agent may consult with counsel, who may be counsel to the City or independent counsel, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith in accordance herewith. Prior to retaining such independent counsel, the Escrow Agent shall notify the City of its intention. The Escrow Agent and its successors, agents and servants shall not be held to any personal liability whatsoever, in tort, contract or otherwise, by reason of the execution and delivery of this Agreement, the establishment of the Trust Fund, the acceptance and disposition of the various moneys and funds described herein, the purchase, retention or disposition of the U.S. Obligations or the proceeds thereof, any payment, transfer or other application of funds or \\wpb-slw01\SANFORDS~399656vOSM 1/25/02\16787 011100 7 securities by the Escrow Agent in accordance with the provisions of this Agreement, or any non-negligent act, omission or error of the Escrow Agent made in good faith in the conduct of its duties. The Escrow Agent shall, however, be liable to the City and to holders of the Refunded Bonds to the extent of their respective damages for negligent or willful acts, omissions or errors of the Escrow Agent which violate or fail to comply with the terms of this Agreement. The duties and obligations of the Escrow Agent shall be determined by the express provisions of this Agreement. SECTION 3.04 Permitted Acts. The Escrow Agent and its affiliates may become the owner of or may deal in the Refunded Bonds as fully and with the same rights as if it were not the Escrow Agent. SECTION 3.05 Successor Escrow Agent. The Escrow Agent, at the time acting hereunder, may at any time resign and be discharged from the trusts hereby created by giving not less than sixty (60) days' written notice to the City, the Paying Agent for the Refunded Bonds and any rating agency which is then rating the Refunded Bonds, but no such resignation shall take effect unless a successor Escrow Agent shall have been appointed by the holders of the Refunded Bonds or by the City as hereinafter provided and such successor Escrow Agent shall have accepted such appointment, in which event such resignation shall take effect immediately upon the appointment and acceptance of a successor Escrow Agent. The Escrow Agent may be removed at any time by an instrument or concurrent instruments in writing, delivered to the Escrow Agent, and to the City, and signed by the holders of a majority in principal amount of each series of the Refunded Bonds then outstanding. In the event the Escrow Agent hereunder shall resign or be removed, or be dissolved, or shall be in the course of dissolution or liquidation, or otherwise become incapable of acting hereunder, or in case the Escrow Agent shall be taken under the control of any public officer or officers, or of a receiver appointed by a court, a successor may be appointed by the holders of a majority in principal amount of each series of the Refunded Bonds then outstanding by an instrument or concurrent instruments in writing, signed by such holders, or by their attorneys in fact, duly authorized in writing; provided, nevertheless, that in any such event, the City shall appoint a temporary Escrow Agent to fill such vacancy until a successor Escrow Agent shall be appointed by the holders of a majority in principal amount of the Refunded Bonds then outstanding in the manner above provided, and any such temporary Escrow Agent so appointed by the City shall immediately and without further act be superseded by the Escrow Agent so appointed by such holders. The City shall promptly notify the Escrow Agent of any change in the identity of the Paying Agent for the Refunded Bonds. In the event that no appointment of a successor Escrow Agent or a temporary successor Escrow Agent shall have been made by such holders or the City pursuant to the foregoing provisions of this Section within sixty (60) days after written notice of resignation of the Escrow Agent has been given to the City, the holder of any of the Refunded Bonds or any retiring Escrow Agent may apply to any court of competent jurisdiction for the appointment of a successor Escrow Agent and such court may thereupon, after such notice, if any, as it shall deem proper, appoint such successor Escrow Agent. \\wpb-srv01LSANFORDS~399656vOS\I 1/25/02\16787 011100 8 No successor Escrow Agent shall be appointed unless such successor Escrow Agent shall be a corporation with trust powers organized under the banking laws of the United States or any state, and shall have at the time of appointment capital and surplus of not less than $50,000,000 or is a member of a bank group or bank holding company with aggregate capital and surplus of not less than $50,000,000. Every successor Escrow Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor, and to the City, an instrument in writing accepting such appointment hereunder and thereupon such successor Escrow Agent, without any further act, deed or conveyance, shall become fully vested with all the rights, immunities, powers, trusts, duties and obligations of its predecessor; but such predecessor shall, nevertheless, on the written request of such successor Escrow Agent or the City, execute and deliver an instrument transferring to such successor Escrow Agent all the estates, properties, rights, powers and trusts of such predecessor hereunder; and every predecessor Escrow Agent shall deliver all securities and moneys held by it to its successor; provided, however, that before any such delivery is required to be made, all fees, advances and expenses of the retiring or removed Escrow Agent shall be paid in full. Should any transfer, assignment or instrument in writing from the City be required by any successor Escrow Agent for more fully and certainly vesting in such successor Escrow Agent the estates, rights, powers and duties hereby vested or intended to be vested in the predecessor Escrow Agent, any such transfer, assignment and instruments in writing shall, on request, be executed, acknowledged and delivered by the City. Any corporation into which the Escrow Agent, or any successor to it in the trusts created by this Agreement, may be merged or converted, or to which substantially all of its corporate assets have been sold or assigned, or with which it or any successor to it may be consolidated, or any corporation resulting from any merger, conversion, consolidation or reorganization to which the Escrow Agent or any successor to it shall be a party, shall be the successor Escrow Agent under this Agreement without the execution or filing of any paper or any other act on the part of any of the parties hereto, anything herein to the contrary notwithstanding. SECTION 3.06 Receipt of Proceedings. Receipt of tree and correct copies of the proceedings authorizing the issuance of the Refunded Bonds, including the Original Resolution, are hereby acknowledged by the Escrow Agent, and reference herein to or citation herein of any provision of said documents shall be deemed to incorporate the same as a part hereof in the same manner and with the same effect as if they were fully set forth herein. SECTION 3.07 Ci.ty Indemni~.. The City agrees to indemnify and save the Escrow Agent, its agents and employees, harmless, to the extent allowed by law, against any liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements of whatsoever kind or nature which it may incur in the exercise and performance of its powers and duties hereunder, including legal expenses, and which are not due to its own negligence or willful misconduct. Indemnification provided under this section shall survive the termination of this Agreement. SECTION 3.08 Payment to Escrow Agent and Paving Agent. The City hereby agrees to provide for the payment, from its own legally available funds, the costs, charges, services and expenses of the Escrow Agent incurred in connection with its duties under this \\wpb-srv01\SANFORDS~399656v08\l 1/25/02\16787 011100 9 Agreement. The Escrow Agent hereby acknowledges that it has agreed to accept, and the City agrees to pay, on the date of execution of this Agreement, the compensation under this Agreement, as shown on the attached Exhibit C, plus reasonable expenses. The City hereby agrees to pay the fees and expenses of the Paying Agent referred to below and any publication costs borne by such Paying Agent for the Refunded Bonds or by the Escrow Agent from the City's own legally available moneys. The paying agent for the Refunded Bonds is The Bank of New York, having a representative office in Jacksonville, Florida. SECTION 3.09 Notices of Redemption and Defeasance. The City hereby irrevocably instructs the Escrow Agent to file a copy of the notice of redemption with the Paying Agent for the Refunded Bonds not less than thirty-five (35) days prior to January 23, 2003 with respect to the 1992 Bonds, June 1, 2003 with respect to the 1995 Bonds and June 1, 2004 with respect to the 1994 Bonds, with instructions to such Paying Agent to mail such notice of optional redemption to the registered owners of such Refunded Bonds not less than thirty (30) days prior to January 23, 2003 with respect to the 1992 Bonds, June 1, 2003 with respect to the 1995 Bonds and June 1, 2004 with respect to the 1994 Bonds. Such notices of redemption, with respect to the Refunded Bonds shall be in substantially the forms attached hereto as Exhibit A. The cost of mailings shall be borne by the City. The City hereby instructs the Escrow Agent to publish the applicable notice of defeasance, set forth on Exhibit B attached hereto, and then file the same with the Paying Agent for the Refunded Bonds, all in accordance with the instructions set forth thereon. The cost of such filings and publication shall be borne by the City. The notice of redemption for the 1992 Bonds shall also constitute the notice of defeasance for such 1992 Bonds. ARTICLE IV MISCELLANEOUS SECTION 4.01 Amendments to this Agreement. This Agreement is made for the benefit of the City and the holders from time to time of the Refunded Bonds and it shall not be repealed, revoked, altered or amended in whole or in part without the written consent of all affected holders, the Escrow Agent and the City if such amendment adversely affects its rights; provided, however, that the City and the Escrow Agent may, without the consent of, or notice to, such holders, enter into such agreements supplemental to this Agreement as shall not adversely affect the rights of such holders and as shall not be inconsistent with the terms and provisions of this Agreement, for any one or more of the following purposes: (a) to cure any ambiguity or formal defect or omission in this Agreement; (b) to grant to, or confer upon, the Escrow Agent, for the benefit of the holders of the Refunded Bonds, any additional rights, remedies, powers or authority that may lawfully be granted to, or conferred upon, such holders or the Escrow Agent; and (c) to subject to this Agreement additional funds, securities or properties. \\wpb-srv01\SANFORDSX399656v08\l 1/25/02\16787 011100 1 0 The Escrow Agent shall be entitled to rely exclusively upon an unqualified opinion of nationally recognized attorneys on the subject of municipal bonds with respect to compliance with this Section, including the extent, if any, to which any change, modification, addition or elimination affects the rights of the holders of the Refunded Bonds or that any instrument executed hereunder complies with the conditions and provisions of this Section. Notwithstanding the foregoing or any other provision of this Agreement other than Sections 2.05 and 2.07 hereof at the written request of the City and upon compliance with the conditions hereinafter stated, the Escrow Agent shall have the power to and shall, in simultaneous transactions, sell, transfer, otherwise dispose of or request the redemption of the U.S. Obligations held hereunder and to substitute therefor direct obligations of, or obligations fully guaranteed by the United States of America, subject to the conditions that such moneys or securities held by the Escrow Agent shall be verified to be sufficient, without reinvestment, to pay Annual Debt Service on the Refunded Bonds, as the same shall become due, until the Total Debt Service on the Refunded Bonds has been paid in accordance with Schedule C attached hereto. The City hereby covenants and agrees that it will not request the Escrow Agent to exercise any of the powers described in the preceding sentence (i) in any manner which will cause the Series 2002 Bonds or the Refunded Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code, and the regulations thereunder in effect on the date of such request and applicable to obligations issued on the issue date of the Series 2002 Bonds and the Refunded Bonds, and (ii) without payment of reasonable expenses of the Escrow Agent in connection therewith. The Escrow Agent shall, as directed in writing by the City, purchase such substituted securities with the proceeds derived from the maturity, sale, transfer, disposition or redemption of the U.S. Obligations held hereunder or from other moneys available. The transactions may be effected only if there shall have been obtained: (1) an independent verification by a nationally recognized independent certified public accounting finn retained by the City concerning the adequacy of such substituted securities with respect to principal and the interest thereon and any other moneys or securities held for such purpose to pay Annual Debt Service on the Refunded Bonds when due, until the Total Debt Service on the Refunded Bonds has been paid in accordance with Schedule C attached hereto; and (2) an opinion from Greenberg Traurig, P.A., or from any other nationally recognized attorneys on the subject of municipal bonds, to the City and the Escrow Agent to the effect that the disposition and substitution or purchase of such securities will not, under the statutes, rules and regulations then in force and applicable to obligations issued on the date of issuance of the Series 2002 Bonds and Refunded Bonds, cause the interest on such Series 2002 Bonds or Refunded Bonds not to be excluded from gross income for Federal income tax purposes and that such disposition and substitution or purchase is not inconsistent with the statutes and regulations applicable to the Series 2002 Bonds and the Refunded Bonds. Any surplus moneys, identified as such in the then applicable verification report, resulting from the sale, transfer, other disposition or redemption of the U.S. Obligations held hereunder and the substitutions therefor of direct obligations of, or obligations the principal of and interest on which is fully guaranteed by, the United States of America, shall be released from the Trust Estate and shall be transferred to the City. The City shall provide written notice of any such amendment to the rating agencies then rating the Bonds prior to the effective date thereof. The City shall give prior written notice to Moody's Investors Service, Inc. (herein, "Moody's"), together with draft copies, of any proposed amendment, alteration, revocation, '~\wpb-srv01~SANFORDSB99656v08\l 1/25/02\16787 011100 11 severance or repeal of this Agreement pursuant to this Section. Such notice shall be given in writing to: Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention: Public Finance Ratings Desk - Refunded Bonds. SECTION 4.02 Severability. If any one or more of the covenants or agreements provided in this Agreement on the part of the City or the Escrow Agent to be performed should be determined by a court of competent jurisdiction to be contrary to law, such covenant or agreement shall be deemed and construed to be severable from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement. The Escrow Agent shall notify Moody's as soon as practicable if any portion of this Agreement becomes severable. SECTION 4.03 Aereement Binding. All the covenants, promises and agreements in this Agreement contained by or on behalf of the City or by or on behalf of the Escrow Agent shall bind and inure to the benefit of their respective successors and assigns, whether so expressed or not. SECTION 4.04 Termination. This Agreement shall terminate when all transfers and payments required to be made by the Escrow Agent under the provisions hereof shall have been made. SECTION 4.05 Governine Law. This Agreement shall be governed by the applicable laws of the State of Florida. SECTION 4.06 Execution by Counterparts. This Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. SECTION 4.07 Notices. Until otherwise directed in writing by any person named below, all notices, reports, or other communications required or permitted to be given in accordance with the terms of this Agreement shall be in writing and sent by registered or certified mail addressed as follows: (a) As to the City: Rebecca S. O'Connor City of Delray Beach 100 N.W. 1 st Avenue Delray Beach, FL 33444 (561) 243-7120 (561) 243-7166 - Fax As to the Escrow Agent: Wells Fargo Bank, National Association 210 North University Drive Suite 302 Coral Springs, FL 33071 Attention: Corporate Trust Department \\wpb~srv01\SANFORDS~399656v08~l 1/25/02\16787 011100 12 (c) As to the Paying Agent: The Bank of New York c/o The Bank of New York Trust Company of Florida, N.A. 10161 Centurion Parkway Jacksonville, Florida 32256 Attention: Corporate Trust Department \\wpb-srv01kSANFORDSk399656v08[l 1/25/02\16787 011100 13 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its duly authorized officers and its corporate seal to be hereunto affixed and attested as of the date of execution set forth below. CITY OF DELRAY BEACH, FLORIDA By: (SEAL) Title: Mayor Date of Execution: December __, 2002 Attest: City Clerk Wells Fargo Bank, National Association, as Escrow Agent (SEAL) By: Authorized Officer Date of Execution: December __, 2002 \\wpb-srv01 ~SANFORDS~399656v08\ 11/25/02\16787 011100 14 SCHEDULE A REFUNDED BONDS Series 1992 Bonds Maturity Date 6/01/03 6/01/04 6/01/07 Principal Amount $ 855,O00 905,000 3,050,000 $4,810,000 Interest Rate 5.90% 6.00% 6.25% Series 1994 Bonds Maturity Date 6/01/03 6/01/04 6/01/05 6/01/06 6/01/07 6/01/08 6/01/12 6/01/16 Principal Amount $340,000 365,000 385,000 410,000 430,000 1,580,000 1,010,000 1,290,000 $5,810,000 Interest Rate 5.45% 5.55% 5.65% 5.75% 5.85% 6.00% 6.25% 6.35% Series 1995 Bonds Maturity Date 6/01/03 6/01/04 6/01/05 6/01/06 6/01/07 6/01/08 6/01/09 6/01/16 Principal Amount $95,000 100,000 105,000 110,000 115,000 120,000 125,000 1,105,000 $1,875,000 Interest Rate 4.700% 4.875% 5.000% 5.000% 5.250% 5.250% 5.300% 6.000% \\wpb-srv01 ~SANFORDSk399656v08\ 11/25/02\16787 011100 SCHEDULE B U.S. OBLIGATIONS Purchased from Proceeds of the Series 2002 Bonds and Transferred Moneys Maturity Principal Interest Date Amount Rate 6/01/03 12/01/03 6/01/04 TYpe SLGs~ SLGs~ SLGs~ Purchase Price u.s. Treasury Securities - State and Local Government Series \\wpb-srv01 \SANFORDSX399656v08\ 11/25/02\16787 011100 Redemption Date January 23, 2003 SCHEDULE C Annual Debt Service and Total Debt Service for Refunded Bonds payable as indicated below Series 1992 Bonds Called Redemption Principal Premium Interest $4,810,000 $96,200 Total Interest Payment Date June 1, 2003 December 1, 2003 June 1, 2004 M~ufing Principal $340,O00 $365,000 Series 1994 Bonds Called Redemption Principal Premium Interest $5,105,000 $102,100 Total Interest Maturing Called Payment Principal Principal Date June 1, 2003 $95,000 Series 1995 Bonds $1,780,000 Redemption Premium Interest $35,600 Total \\wpb-srv01~SANFORDS~399656v08~l 1/25/02\16787 011100 EXHIBIT A-1 NOTICE OF DEFEASANCE AND CALL FOR REDEMPTION $ CITY OF DELRAY BEACH, FLORIDA Utilities Tax Revenue Refunding and Improvement Bonds, Series 1992 Maturing on June 1, 2003 through and including June 1, 2007 NOTICE IS HEREBY GIVEN that, pursuant to Resolution No. 98-91, adopted by the City of Delray Beach, Florida (the "City"), on December 3, 1991, as amended and supplemented (collectively, the "Resolution"), the City has irrevocably deposited with Wells Fargo Bank, National Association, as escrow agent (the "Escrow Agent"), in trust, and irrevocably set aside for such payment, cash and Defeasance Obligations (as such term is defined in the Resolution) (collectively, the "Deposits"), maturing as to principal and interest in such amounts and at such times as will ensure the availability of sufficient moneys to pay the principal of and interest thereon to the redemption date of certain of the outstanding City of Delray Beach, Florida Utilities Tax Revenue Refunding and Improvement Bonds, Series 1992 (the "Defeased Bonds"), as described below, and that the Defeased Bonds are deemed to have been paid in accordance with the terms and provisions of the Resolution and that the Defeased Bonds are hereby called for optional redemption on January 23, 2003 (the "Redemption Date"), at a price of 102% of the principal amount thereof plus accrued interest to the Redemption Date. In the opinion ofCausey Demgen & Moore, Inc., set forth in their report dated December __, 2002, the Deposits are fully sufficient to pay and refund the Defeased Bonds on the Redemption Date. Pursuant to the defeasance provisions set forth in the Resolutions, the Defeased Bonds are deemed paid within the meaning thereof. The maturities and principal amounts per maturity and CUSIP numbers of the Defeased Bonds to be redeemed are as follows: Maturity Principal Date Amount CUSIP No. 06/01/03 $ 855,000 06/01/04 905,000 06/01/07 $3,050,000 \\wpb-srv0 I\SANFORDSX399656v08\I 1/25/02\16787 011100 A- 1 - 1 The Defeased Bonds subject to optional redemption on the Redemption Date shall be presented for payment at the designated corporate tTUSt office of The Bank of New York, Attention: Corporate Trust Department (the "Paying Agent"). On or after the Redemption Date, no interest shall accrue on said Defeased Bonds. This notice is given in conformity with the provisions of the Defeased Bonds and the Resolution providing for their issuance, and the owners of said Defeased Bonds are hereby notified and requested to present such Defeased Bonds for redemption and payment as provided above. The Defeased Bonds which have been called for redemption will be paid from funds irrevocably deposited for this purpose in an Escrow Deposit Trust Fund established with Wells Fargo Bank, National Association, as Escrow Agent for the Defeased Bonds. CITY OF DELRAY BEACH, FLORIDA The Bank of New York, as Paying Agent and Bond Registrar for the Defeased Bonds. Dated ., 2002 \\wpb-srv01\SANFORDSX399656v08\l 1/25/02\16787 011100 A- 1-2 Withholding of 31% of gross redemption proceeds of any payment made within the United States is required by the Interest and Dividend Tax Compliance Act of 1983, as amended, unless the Paying Agent has the correct taxpayer identification number (social security or employer identification number) or exemption certificate of the payee. Please furnish a properly completed Form W-9 or exemption certificate or equivalent when presenting your bonds for payment. CUSIP numbers have been assigned by Standard & Poor's Corporation and are included solely for the convenience of the holders. Neither the City nor the Escrow Agent shall be responsible for the selection or use of the CUSIP numbers nor is any representation made as to their correctness on the Defeased Bonds or as indicated in any redemption notice. Instructions to Escrow Agent: This notice must be filed, by the Escrow Agent, with the Paying Agent, as provided in Section 3.09 of the Escrow Deposit Agreement. \\wpb-srv0 BSANFORDSX399656v08\ 11/25/02\16787 011100 A- 1-3 EXHIBIT A-2 NOTICE OF CALL FOR REDEMPTION $ CITY OF DELRAY BEACH, FLORIDA Utilities Tax Revenue Refunding and Improvement Bonds, Series 1994 Maturing on June 1, 2005 through and including June 1, 2016 NOTICE IS HEREBY GIVEN that, pursuant to Resolution No. 98-91, adopted by the City of Delray Beach, Florida (the "City"), on December 3, 1991, as amended and supplemented (collectively, the "Resolution"), the City has irrevocably deposited with Wells Fargo Bank, National Association, as escrow agent (the "Escrow Agent"), in trust, and irrevocably set aside for such payment, cash and Defeasance Obligations (as such term is defined in the Resolution), maturing as to principal and interest in such amounts and at such times as will ensure the availability of sufficient moneys to pay the principal of and interest thereon to the redemption date of certain of the outstanding City of Delray Beach, Florida Utilities Tax Revenue Refunding and Improvement Bonds, Series 1994 (the "Defeased Bonds"), as described below, and that the Defeased Bonds are deemed to have been paid in accordance with the terms and provisions of the Resolution and that the Defeased Bonds, other than the Defeased Bonds maturing on June 1, 2003 and June 1, 2004, are hereby called for optional redemption on June 1, 2004 (the "Redemption Date"), at a price of 102% of the principal amount thereof plus accrued interest to the Redemption Date. The maturities and principal amounts per maturity and CUSIP numbers of the Defeased Bonds to be redeemed are as follows: Maturity Principal Date Amount CUSIP No. 06/01/05 $ 385,000 06/01/06 410,000 06/01/07 430,000 06/01/08 1,580,000 06/01/12 1,010,000 06/01/16 1,290,000 The Defeased Bonds subject to optional redemption on the Redemption Date shall be presented for payment at the designated corporate trust office of The Bank of New York, Attention: Corporate Trust Department (the "Paying Agent"). On or after the Redemption Date, no interest shall accrue on said Defeased Bonds. \~wpb-srv0 I\SANFORDSX399656v08\I 1/25/02\16787 011100 A-2-1 This notice is given in conformity with the provisions of the Defeased Bonds and the Resolution providing for their issuance, and the owners of said Defeased Bonds are hereby notified and requested to present such Defeased Bonds for redemption and payment as pro*ided above. The Defeased Bonds which have been called for redemption will be paid from funds irrevocably deposited for this purpose in an Escrow Deposit Trust Fund established with Wells Fargo Bank, National Association, as Escrow Agent for the Defeased Bonds. CITY OF DELRAY BEACH, FLORIDA The Bank of New York, as Paying Agent and Bond Registrar for the Defeased Bonds. Dated ,2004 \\wpb-srvOl\SANFORDS~399656vO8\l 1/25/02\16787 011100 A-2-2 Withholding of 31% of gross redemption proceeds of any payment made within the United States is required by the Interest and Dividend Tax Compliance Act of 1983, as amended, unless the Paying Agent has the correct taxpayer identification number (social security or employer identification number) or exemption certificate of the payee. Please furnish a properly completed Form W-9 or exemption certificate or equivalent when presenting your bonds for payment. CUSIP numbers have been assigned by Standard & Poor's Corporation and are included solely for the convenience of the holders. Neither the City nor the Escrow Agent shall be responsible for the selection or use of the CUSIP numbers nor is any representation made as to their correctness on the Defeased Bonds or as indicated in any redemption notice. Instructions to Escrow Agent: This notice must be filed, by the Escrow Agent, with the Paying Agent, as provided in Section 3.09 of the Escrow Deposit Agreement. \\wpb-$r~O 1KSANFORDS'x399656v08\ 11/25/02\16787 011100 A-2-3 EXHIBIT A-3 NOTICE OF CALL FOR REDEMPTION $ CITY OF DELRAY BEACH, FLORIDA Utilities Tax Revenue Bonds, Series 1995 Maturing on June 1, 2004 through and including June 1, 2016 NOTICE IS HEREBY GIVEN that, pursuant to Resolution No. 98-91, adopted by the City of Delray Beach, Florida (the "City"), on December 3, 1991, as amended and supplemented (collectively, the "Resolution"), the City has irrevocably deposited with Wells Fargo Bank, National Association, as escrow agent (the "Escrow Agent"), in trust, and irrevocably set aside for such payment, cash and Defeasance Obligations (as such term is defined in the Resolution), maturing as to principal and interest in such amounts and at such times as will ensure the availability of sufficient moneys to pay the principal of and interest thereon to the redemption date of certain of the outstanding City of Delray Beach, Florida Utilities Tax Revenue Bonds, Series 1995 (the "Defeased Bonds"), as described below, and that the Defeased Bonds are deemed to have been paid in accordance with the terms and provisions of the Resolution and that the Defeased Bonds, other than the Defeased Bonds maturing on June 1, 2003, are hereby called for optional redemption on June 1, 2003 (the "Redemption Date"), at a price of 102% of the principal amount thereof plus accrued interest to the Redemption Date. The maturities and principal amounts per maturity and CUSIP numbers of the Defeased Bonds to be redeemed are as follows: Maturity Principal Date Amount CUSIP No. 06/01/04 $ 100,000 06/01/05 105,000 06/01/06 110,000 06/01/07 115,000 06/01/08 120,000 06/01/09 125,000 06/01 /16 1,105,000 The Defeased Bonds subject to optional redemption on the Redemption Date shall be presented for payment at the designated corporate trust office of The Bank of New York, Attention: Corporate Trust Department (the "Paying Agent"). On or after the Redemption Date, no interest shall accrue on said Defeased Bonds. This notice is given in conformity with the provisions of the Defeased Bonds and the Resolution providing for their issuance, and the owners of said Defeased Bonds are hereby \\wpb-srv01LSANFORDS~399656 v08\ 11/25/02\16787 011100 A-3-1 notified and requested to present such Defeased Bonds for redemption and payment as provided above. The Defeased Bonds which have been called for redemption will be paid from funds irrevocably deposited for this purpose in an Escrow Deposit Trust Fund established with Wells Fargo Bank, National Association, as Escrow Agent for the Defeased Bonds. CITY OF DELRAY BEACH, FLORIDA The Bank of New York, as Paying Agent and Bond Registrar for the Defeased Bonds. Dated ,2003 ~,\wpb-srv01 ~SANFOKDSX399656v08\I 1/25/02\16787 011100 A-3-2 Withholding of 31% of gross redemption proceeds of any payment made within the United States is required by the Interest and Dividend Tax Compliance Act of 1983, as amended, unless the Paying Agent has the correct taxpayer identification number (social security or employer identification number) or exemption certificate of the payee. Please furnish a properly completed Form W-9 or exemption certificate or equivalent when presenting your bonds for payment. CUSIP numbers have been assigned by Standard & Poor's Corporation and are included solely for the convenience of the holders. Neither the City nor the Escrow Agent shall be responsible for the selection or use of the CUSIP numbers nor is any representation made as to their correctness on the Defeased Bonds or as indicated in any redemption notice. Instructions to Escrow Agent: This notice must be filed, by the Escrow Agent, with the Paying Agent, as provided in Section 3.09 of the Escrow Deposit Agreement. \\wpb-$rv01 \SANFORDS~399656v08\ 11/25/02\16787 011 ] 00 A-3- 3 EXHIBIT B-1 NOTICE OF DEFEASANCE CITY OF DELRAY BEACH, FLORIDA Utilities Tax Revenue Refunding and Improvement Bonds, Series 1994 NOTICE IS HEREBY GIVEN that the City of Delray Beach, Florida (the "City"), has caused to be deposited with Wells Fargo Bank, National Association, having a designated corporate trust office in Coral Springs, Florida (the "Escrow Agent"), pursuant to the terms and provisions of a certain Escrow Deposit Agreement, dated as of December 1, 2002 (the "Escrow Agreement"), by and between the City and the Escrow Agent, bond proceeds and other legally available moneys which have been invested (except for a small initial cash balance which will remain uninvested) in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America (collectively, the "Deposits"), to pay and defease the City's outstanding Utilities Tax Revenue Refunding and Improvement Bonds, Series 1994 (the "Defeased Bonds"), maturing on June 1, 2003 through and including June 1, 2016. The Defeased Bonds, other than the Defeased Bonds maturing on June 1, 2003 and June 1, 2004, will be called for optional redemption on June 1, 2004, at a price of 102% of the principal amount thereof, plus accrued interest to the redemption date. In the opinion of Causey Demgen & Moore, Inc., set forth in their report dated December __, 2002, the Deposits are fully sufficient to pay and refund the Defeased Bonds on their respective payment or redemption dates. Pursuant to the defeasance provisions set forth in the resolutions authorizing the issuance of the Defeased Bonds (the "Bond Resolution"), the Defeased Bonds are deemed paid within the meaning thereof. \\wpb-srv01 ~SANFORDSX399656v08[11/25/02\t6787 011100 B- l - 1 The Paying Agent for the Defeased Bonds shall provide notice of redemption in accordance with the provisions of the Bond Resolution. CITY OF DELRAY BEACH, FLORIDA Dated: Instructions to Escrow Agent: This notice must be published once in The Bond Buyer as soon as practicable after December __, 2002, and filed with the Paying Agent for the Refunded Bonds as soon as practicable after December __, 2002, with instructions to mail the same to the registered holders of the Defeased Bonds. \\wpb-srv01 \SANFORDS~399656v08\I 1/25/02\16787 011100 B- 1-2 EXHIBIT B-2 NOTICE OF DEFEASANCE CITY OF DELRAY BEACH, FLORIDA Utilities Tax Revenue Bonds, Series 1995 NOTICE IS HEREBY GIVEN that the City of Delray Beach, Florida (the "City'), has caused to be deposited with Wells Fargo Bank, National Association, having designated corporate trust office in Coral Springs, Florida (the "Escrow Agent"), pursuant to the terms and provisions of a certain Escrow Deposit Agreement, dated as of December 1, 2002 (the "Escrow Agreement"), by and between the City and the Escrow Agent, bond proceeds and other legally available moneys which have been invested (except for a small initial cash balance which will remain uninvested) in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America (collectively, the "Deposits"), to pay and defease the City's outstanding Utilities Tax Revenue Bonds, Series 1995 (the "Defeased Bonds"), maturing on June 1, 2003 through and including June 1, 2016. The Defeased Bonds, other than the Defeased Bonds maturing on June 1, 2003, will be called for optional redemption on June 1, 2003, at a price of 102% of the principal amount thereof, plus accrued interest to the redemption date. In the opinion of Causey Demgen & Moore, Inc., set forth in their report dated December __, 2002, the Deposits are fully sufficient to pay and refund the Defeased Bonds on their respective payment or redemption dates. Pursuant to the defeasance provisions set forth in the resolutions authorizing the issuance of the Defeased Bonds (the "Bond Resolution"), the Defeased Bonds are deemed paid within the meaning thereof. \\wpb-srv0 I\SANFORDS~399656v08\I 1/25/02\16787 011100 B-2- l The Paying Agent for the Defeased Bonds shall provide notice of redemption in accordance with the provisions of the Bond Resolution. CITY OF DELRAY BEACH, FLORIDA Dated: Instructions to Escrow Agent: This notice must be published once in The Bond Buyer as soon as practicable after December __, 2002, and filed with the Paying Agent for the Refunded Bonds as soon as practicable after December __, 2002, with instructions to mail the same to the registered holders of the Defeased Bonds. ~\wpb-srv0 BSANFORDS~399656v08\l 1/25/02\16787 O11100 B-2-2 EXHIBIT C Acceptance Fee -0- Escrow Agent Administration Fee (One time up from due at Closing) $450.00 Reimbursement of out-of-pocket costs including postage, publication and legal fees, if necessary, at cost. \\wpb-srv01\SANFORDS~399656v08\l 1/25/02\16787 011100 C- 1 Exhibit B BOND PURCHASE AGREEMENT December __, 2002 $ City of Delray Beach, Florida Utilities Tax Revenue Refunding Bonds, Series 2002 The City Commission of the City of Delray Beach, Florida 100 N.W. First Avenue Delray Beach, Florida 33444 Ladies and Gentlemen: Bear Stearns & Co., Inc. (the "Underwriter") offers to enter into the folloxvmg agreement (the "Purchase Contract") with the City of Delray Beach, Florida (the "City"), whnch, upon your acceptance of this offer, will be binding upon the City and upon the Underwriter. Th~s offer is made subject to your acceptance on or before 5:00 p.m., Eastern time, on the date hereof and if not so accepted, will be subject to xv~thdra~val by the Underxvnter upon nonce to the City at any time prior to your acceptance hereof. 1. Purchase and Sale. Upon the terms and condiuons and upon the basis of the representauons, warranties and agreements set forth herein, the Underxvnter hereby agrees to purchase from the City for offenng to the pubhc, and the City hereby agrees to sell and dehver to the Underwriter for such purpose, all (but not less than all) of the City's $. Utihues Tax Revenue Refunding Bonds, Series 2002 (the "Bonds"). The Bonds shall be dated as of December 1, 2002, and shall be issued m such pnnclpal amounts, bear such rates of interest, and be redeemable upon such terms as set forth in Exhibit A attached hereto. Interest on the Bonds shall be payable on June 1, 2003, and on each December 1 and June 1 thereafter. The aggre,::ate purchase price of the Bonds is $_. (which takes into account a net original issue prermur, of $. and an Undcrwnter's discount of $. ) plus accrued interest from December 1, 2002 to the Closing Date (as hereinafter defined). The Bonds shall initially be offered to thc pubhc at such prices or yields as indicated on Exhibit A attached hereto. The Bonds are being issued pursuant to the Consfitunon and Laws of the State of Florida, parncularly, Chapter 166, Florida Statutes, as amended, and other applicable provisions of la,v, and Resoluuon No. 98-91 of the C%, duly adopted on December 3, 1991 and Resoluuon No. R-90-02 duly adopted on December 3, 2002 (Resolution No. 98-91 and Resoluuon No. R-90-02 are someUmes, collecnvely, referred to herein as the "Resolunon"). The Bonds are special and limited obligations of the City, payable solely from and secured by the Pledged Funds (defined bcloxv). The City, is proposing to issue the Bonds to finance the cost of (i) refunding, on a current bas~s, the C~ty's outstanding Utfliues Tax Revenue Refunding and Improvement Bonds, Series 1992 (the "Series 1992 Bonds"); 01) advance refunding the City's outstanding Utthues Tax Revenue Refunding and Improvement Bonds, Series 1994 (the "Series 1994 Bonds"); (m) advance refunding the Cwy% outstanding Unlltaes Tax Revenue Bonds, Series 1995 (the "Series 1995 Bonds"); 0v) refunding, on a current basis, the C~U,'s Uttlmes Tax Revenue Bonds, Subordinate 017005 00304~ 1078415v3 Series 1996 (the "Series 1996 Bonds"); (v) refunding, on a current basis, the City's Utilities Tax Revenue Bonds, Subordinate Series 1998 (the "Series 1998 Bonds"); (m) providing a Reserve Account Credit Facility Substitute (as defined in the Resolution) issued by the Insurer (as defined below); and (vh) paying certain costs of issmng the Bonds, including payment of the premium for a municipal bond insurance pohcy (the "Bond Insurance Pohcy") to be purchased from Financial Security Assurance Inc. (the "Insurer"). The Bonds will be secured by a first lien on and pledge of the proceeds of the Utihues Tax deposited in the Sinking Fund created and established under the Resolutton, in the manner and to the extent described in the Resolution (collectively, the "Pledged Funds"). Concurrently with the execution and delivery of the Bonds, there are to be executed and delivered, among other things: (a) Escrow Deposit Agreement dated as of December __, 2002 (the "Escrow Agreement"), between the City and Wells Fargo Bank, Nauonal Associauon, as registrar and paying agent for the Bonds (the "Registrar and Paying Agent" or the "Escrow Agent"), (b) the Tax Certificate of the Issuer dated as of December ___, 2002 (the "Tax Certificate") and (c) any other docuwtents related to the transacuons contemplated in the Official Statement in connecnon with the pubhc offering, sale and distribution of the Bonds. This Purchase Contract, the Escrow Agreement and the Tax Certtficate are sometunes collecuvely referred to herein as the "City Documents". 2. Good Faith Deposit; Underwriter's Liability. Delivered to you herewith, as a good faith deposit, is a corporate check of the Underxvnter payable to the order of the City tn the amount of $__ (1% of the principal amount of the Bonds) as security for the performance by the Underxvnter of its obligation to accept and pay for the Bonds at Closing tn accordance with the provisions hereof. In the event that you accept flus offer, said check will be held uncashed by the City as a good faith deposit. At the Clostng, the check will be returned to the Underwriter. In the event you do not accept this offer, the check shall be immediately returned to the Underwriter. If the Underwriter fails (other than for a reason perrmtted hereunder) to accept and pay for the Bonds at the Closing as provided herein, the check may be cashed by the City and the proceeds retained by the City as full hqmdated damages for the failure of the Underwriter to accept and pay for the Bonds at closing and for any and all defaults hereunder on the part of the Undenvnter, and the retenuon of such amounts shall consutute a full release and discharge of all clatms and damages for such failure and for any and all such defaults hereunder on the part of the Underwriter, it betng understood by both the Cl~ and the Underxvriter that actual damages in such circumstances may be chfficult or impossible to compute. In the event that the CiD' fatls to deliver the Bonds at the Closing, or ~f the City is unable at or prior to the Closing Date to sausfy or cause to be satisfied thc conditions to the obliganons of the Underwriter contained tn this Purchase Contact, or If thc obhgadons of the Underxvnter contained here~n shall be cancelled or terminated for any reason perrmtted by this Purchase Contract, the City shall be obhgated to Lmmediately return the chcck to the Underwriter and such return shall consutute a full release and discharge of all claims by the City and the Underwriter ansmg out of the transacuon contemplated herein except for the rcspecUve obhgations of the C~' and the Underxvriter set forth in Section 8 hereof. 3. Offering. The Underwriter agrees to make a pubhc offering of the Bonds at the lmtial offering prices set forth in Exhibit A attached hereto; provided, however, the Underwriter reserves 2 the right to make concessions to dealers and to change such initial offering prices as the Underwriter shall deem necessary in connection w~th the marketing of the Bonds. It shall be a condinon of your obligation to sell and deliver the Bonds to the Underwriter, and the obhganon of the Underwriter to purchase and accept dehvery of the Bonds, that the entire initial aggregate principal amount of the Bonds shall be sold and dehvered by you and accepted and paid for by the Underwriter at the Closing. 4. Preliminary Official Statement and Official Statement. The C~ty hereby confirms that it has heretofore made available to the Underwriter a Prelirmnary Officml Statement of the City relating to the Bonds dated December 4, 2002 (wl:nch, together xvxth the cover page and appenchces contained therein, ~s hereto called the "Preliminary Officml Statement"). Within seven business days of the acceptance hereof by the C~ty, the C;ty shall deliver to the Underwriter, at the City's expense such reasonable number of conformed cop~es of the Officml Statement (which, together w~th the officml cover page and appendices contained there~n, is herein called the "Official Statement"), as the Underwriter shall reasonably request, which shall be sufficient in number to permit the Underwriter to comply with paragraph (b)(4) of Rule 15c2-12 of the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934 and with Rule G-32 and all other applicable roles of the Mumcipal Securities Rulemaking Board. The City, by ~ts acceptance hereof raufies and approves the deeming £mal of the Prelirmnary Officml Statement as of ~ts date and the distnbutton thereof by the Underwriter and approves and authorizes the Underwriter to use the Officml Statement and all documents described thereto in connection with the pubhc offering and the sale of the Bonds. The City agrees to make no amendments to the Officml Statement wxthout the prior written consent of the Underwriter, winch consent shall not be unreasonably withheld. In adchuon, the C~t¥ will undertake, pursuant to the Resolunon, to provide certain annual fmancml and operating mformanon and notices of the occurrence of certazn events, zf matertal. A description of this undertaking ~s set forth m the Prelmunary Officml Statement and will also be set forth in the final Officml Statement. In accordance w~th Section 218.385(6), Florida Statutes, the Underwriter hereby discloses the requtred ihformanon as provided m Exhibit B attached hereto. In accordance w~th 218.385(2) and (3), Florida 3tatutes, the Underwriter has delivered to the C~ty, the Truth-th Bon&ng statement, whmh statement ~s attached hereto as Exhibit C. 5. Representations, Warranties and Agreements. The C~ty hereby represents, warrants and agrees as follows: a. As of the date of the Prelirmnary Official Statement and the date of th~s Purchase Contract and at the ume of Closing, the statements and informatton contained in the Preliminary Official Statement and Officml Statement are and xvfll be true, correct and complete m all material respects and the Prehrnmary Official Statement and Official Statement xv~ll not on-ut any statement or information which should be included therein for the purposes for xvh~ch the Prelnn~nary Officml Statement and Official Statement are to be used or which ~s necessary to make the statements or informauon contained thereto, m hght of the czrcumstances under xvh~ch they were made, not nuslead~ng (provided, hoxvever, that no representauon or warranty ~s being provided ~v~th respect to the Bond Insurance Policy or the Depos~toU' Trust Company ("DTC") and ~ts book-cntr3, system). 3 b. Between the date of this Purchase Contract and the time of Closing, the City will not execute any bonds, notes or obligations for borrowed money, other than the Bonds, which pledge the Pledged Funds, w~thout giving prior written nonce thereof to the Underwriter. c. The City ~s, and will be at the Closing Date, duly organized and validly existing as a mumcipal corporation of the State of Florida, with the powers and authority set forth in the Act (as defined in the Resolution). d. The City has full legal right, power and authority to: (1) enter into the City Documents, (h) adopt the Resolunon, ('tii) sell, issue and dehver the Bonds to the Underwriter under the Act as provided heretn and (iv) carry out and consummate the transacnons contemplated by the City Documents, the Resolution and the Official Statement, and the City has comphed, and at the Closing will be in comphance, m all respects, with the terms of the Act and xvlth the obligauons on its part in connection with the issuance of the Bonds contained in the Resolution, the Bonds, the Paying Agent Agreement, the Tax Ceruficate and this Purchase Contract. e. By all necessary official acuon, the C~ty has (i) duly adopted the Resoluuon, (ii) duly authorized and approved the Official Statement, and (iii) duly authorized and approved the execution and delivery of, and the performance by the City of, the Bonds, the City Documents, the Resolution and all other obhganons on its part in connection w~th the issuance of the Bonds and the consummanon by it of all other transacuons contemplated by the City Documents and the Official Statement m connecuon with the issuance of the Bonds; and upon delivery of the Bonds at the Closing, the Resolution, the City Documents, will, assurmng the due authorization, execution and dehvery of the City Documents by the other pames thereto, constitute legal, vahd and binding obhgauons of the City, enforceable in accordance xvith their terms, sublect to apphcable bankruptcy, insolvency, and snnilar laws affecung creditors' rights generally and sublect, as to enforceabtlity, to general principles of equity. f. When delivered to and paid for by the Underwriter at the Closing in accordance with the provisions of this Purchase Contract, the Bonds shall be enutled to the benefits of the Resoluuon m accordance with the provisio,.~s of the Resoluuon, subject to bankruptcy, insolvency, reorganlzanon, moratorium and other suntlar l,tws affecting crechtors' rights generally and subject, as to enforceab~hty, to general principles of eqtuty. g. To the best knoxvledge of the City, the adopnon of the Resolution and the authorization, execution and delivery of the City Documents and the Bonds, and comphance with the provisions hereof and thereof, will not conflict with, or consntute a material breach of or default under any laxv, admimstrauve regulanon, consent decree, ordinance, resolution or any agreement or other instrument to which the C~ty xvas or ~s sublect, as the case may be, nor will such adoption, execution, dehvery, authorization or comphance result m the creation or imposition of any hen, charge or other security interest or encumbrance of any nature whatsoever upon any of the property or assets of the C~ty, or under the terms of any laxv, adrmmstrafive regulauon, ordinance, resolution or instrument, except as expressly provided by the Resoluuon. h. At the time of Closing, the City xvfll be in comphance m all respects with the covenants and agreements contained m the Resoluuon and no event of default and no event which, w~th the lapse of nme or g~x, mg of nonce, or both, would consutute an event of default under the Resoluuon, xvfil have occurred or be continuing. i. Except as provided in the Official Statement, all approvals, consents, authorizations and orders of any governmental authority or agency hamng jurisdicuon in any matter which would consntute a condition precedent to the performance by the City of ~ts obligauons hereunder and its obhgations under the Resoluuon have been obtained and are in full force and effect, except that no representation is made w~th respect to comphance with any state blue sky or other legal investment laws. 1. The City is lawfully empowered to pledge and grant a lien on the Pledged Funds for payment of the principal of and interest on the Bonds. k. Except as expressly disclosed m the Official Statement, there is no action, suit, proceeding, tnqum/or tnvesugation, at law or m equity, before or by any court, government agency or public board or body pending or, to the best knowledge of the C~ty, threatened against the City, affecung or seeMng to prohibit, restrain or enjoin the sale, ~ssuance or dehvery of the Bonds or the collectton of the Pledged Funds or the pledge of and lien on the Pledged Funds or contesting or affectmg as to the City the validity or enforceabihty in any respect of the Bonds, the Resolution, the Ctty Documents, or contesting the tax-exempt status of interest on the Bonds, or contesting the completeness or accuracy of the Officml Statement or any supplement or amendment thereto, or contesting the poxvers of the C~ty or the C~ty Commission (the "Commission") or any authority for the ~ssuance of the Bonds, the adoption of the Resolunon or the execution and dehvery by the City of the Bonds, the City Documents. 1. The City wall furnish such tnformation, execute such instruments and take such other acuon tn cooperanon wtth the Underwriter as the Underwriter may reasonably request in order to 0) quahff the Bonds for offer and sale under the "blue sky" or other secunues laws and regulanons of such states and other lurischcuons of the Umted States as the Underwriter may designate and (h) determine the eligibfitty of the Bonds for investment under the laws of such states and other lunsdictions, and xvill use its best efforts to continue such quahficaUons tn effect so long as required for the chsmbutton of the Bonds; provxded, however, that the C~ty shall not be required to execute a general or special consent to servtce of process or quahfy to do bustness or register as a broker/deaier in connecuon with any such quahfication or deterrmnauon tn any luns&cuon. m. The C~ty will not take or omit to take any acuon which action or omission will in any way cause the proceeds from the sale of the Bonds to be applied tn a manner contrary to that provided for tn the Resolution, the Tax Ceruficate, and as described in the Officml Statement. n The City nmther ~s nor has been ~n default at any nme after December 31, 1975, as to princtpal or tnterest xv~th respect to an obligation issued or guaranteed by the City.. o. As of its date, the Prehrmnary Official Statement was deemed "f'mal" by the City for the purposes of SEC Rule 15c2-12Co)(1) except for the ormss~on of certain matters pernmtted thereby. p. If, after the date of th~s Purchase Contract and unul the carter of (i) ninety (90) days from the end of the "underwriung period" (as defined in SEC Rule 15c2-12) or (h) the time xvhen the Offictal Statement ts available to any person from a nauonally recogmzed repository, but in no case less than txventy-five (25) days follo~vmg the end of the underwrmng period, any event shall occur ~vhmh n-nght or xvould cause the Officml Statement, as then supplemented or amended, 5 to contain any untrue statement of a materml fact or to ormt to state a material fact necessary to make the statements therein, m the hght of the circumstances under which they were made, not misleading, the City shall, if it has knowledge of such event, notify the Underwriter thereof and, if in the opimon of the Underwriter such event requires the preparation and pubhcauon of a supplement or amendment to the Official Statement, the City will at ~ts own expense forthwith prepare and furnish to the Underwriter a sufficient number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) which xvfll supplement or amend the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary m order to make the statements thereto, in light of the circumstances existing at such time, not rmsleading. q. Any certificate signed by any official of the City and delivered to the Underwriter shah be deemed a representatton and warranty by the C~ty to the Underwriter as to the truth of the statements therein contained. r. The City has never failed to comply with any prior conunuing disclosure obhgauon arising out of SEC Rule 15c2-12. 6. Closing. At noon, local time, on December 19, 2002 (the "Closing Date"), or at such ume on such earher or later date as shall be agreed upon, the City will, subject to the terms and conditions hereof dehver to DTC in the Cxty of New York, New York or such other location as shall be acceptable to the City and DTC, the Bonds in permanent form, duly executed, and will deliver the other documents hereto menuoned at a locaUon mutually agreed upon by the City and the Underwriter; and the Underwriter wdl pay the purchase price of the Bonds as set forth in Section 1 hereof plus accrued interest on the Bonds from December 1, 2002 to the Closing Date, by immediately available funds, payable to the order of the City. This dehvery and payment is herein called the "Closing." 7. Closing Conditions. The Underwriter has entered xnto this Purchase Contract in reliance upon the representations and warranues of the City herein contained and the performance by the CiD, of ~ts obligations hereunder, both as of the date hereof and as of the ume of Closing. The obhganons of the Underxvnter under thxs I'urchase Contract are and shall be sublect to each of the following conchttons, and the obhgauons of the City shall be subject to the City receiving the ~tems described mcondittons (f)(fi), (i00v), (f)¢0 through (f)(x): a. The representanons and warranues of the Cxty contained hereto shah be tree and correct as of thc date hereof and as of the Closing Date, as if made on the Closing Date. b. The C~ty shall have performed all agreements of the City' required to be performed under the Resolution and this Purchase Agreement prior to or on the Closing Date. c. ~\t the ume of the Closing, the Resoluuon shall be ~n full force and effect in accordance xv~th its terms and shall not have been amended, mochfied or supplemented, and the Official Statement shah not have been supplemented or amended, except in any such case as may have been agreed to by the Underwriter. d. At the nme of the Closing, all official acuon of the City relanng to the C~ty Documents, the Resolution, the Official Statement and the Bonds shall be in full force and effect in 6 accordance with their respective terms and shall not have been amended, mo&fled or supplemented in any material respect, except m each case as may have been agreed to by the Underwriter. e. The Underwriter shall have the right to cancel the agreement contained herein to purchase, to accept dehvery of and to pay for the Bonds by notifying you m wriung of then: intention to do so ff i. between the date hereof and the Closing Date, legislauon shall have been enacted by the Congress of the Umted States ("Congress"), or recommended to the Congress for passage by the President of the United States, or favorably reported for passage to either House of Congress by any Comrmttee of such House, or passed by rather H6use of Congress, or a dec~sion shall have been rendered by a court of the United States or the Umted States Tax Court, or a ruling shall have been made or a regulation shall have been proposed or made by the Treasury Department of the United States or the Internal Revenue Service, w~th respect to the federal taxation of interest received on obhganons of the general character of the Bonds, which, in the opinion of Counsel for the Underwriter has, or will have, the effect of making such interest sublect to inclusion in gross income for purposes of federal income taxation, or it. between the date hereof and the Closing Date, legxslation shall be enacted or any acuon shall be taken by the Securities and Exchange Comn=ssion which has the effect of requmng the contemplated issuance or distribuuon of the Bonds to be registered under the Securiues Act of 1933, as amended, or of requiring the Resoluuon to be qualified under the Trust Indenture Act of 1939, as amended, or in. an event described m paragraph (p) of Section 5 hereof shall have occurred which requires an amendment or supplement to the Official Statement and which, in the reasonable oDmon of the Underwriter, adversely affects the marketab~hty of the Bonds or the market price thereof, or ~v. in the reasonable oplmon of the Underwriter, payment for the delivery of :he Bonds ~s rendered mapracticable or inadvisable because (A) trading in securities generally shall have been suspended on the New York Stock Exchange, Inc or (13) a general banlong moratorium shall have been estabhshed by Federal, New York or Florida authorities, or (C) a war or terrorist act involving the United States or othcr naUonal calarni~r shall have occurred or been declared, or v. an order, decree or injunction of any court of competent jurisdicuon, or any order, ruhng, regulauon or adrmmstrative proceeding by any governmental body or board, shall have been ~ssued or commenced, or any legislation, enacted, with the purpose or effect of prohibitmg the issuance, offenng or sale of the Bonds as contemplated hereby or by the Official Statement or prohibiting the adopuon or performance of the Resolution, or the CltT has, without the prior xvntten consent of the Underwriter, offered or issued any bonds, notes or other obligauons for borroxved money, or incurred any material hab~hues, chrect or conungent, other than as described in the Officml Statement, in either case payable from the Pledged Funds, or 7 vn. the President of the United States, the Office of Management and Budget, the Department of Treasury, the Internal Revenue Service or any other governmental body, department, agency or commission of the Umted States or the State of Florida shall take or propose to take any action or implement or propose regulations, rules or legislauon which, in the reasonable judgment of the Underwriter, materially adversely affects the market price or marketability of the Bonds or causes any material mforrnauon in the Official Statement, m light of the circumstances under which it appears, to be misleading in any material respect, or yin. any executive order shall be announced, or any legislation, ordinance, rule or regulation shall be proposed by or introduced in, or be enacted by any governmental body, department, agency or comrmsslon of the United States or the State of Florida or the State of New York, having jurisdiction over the subject matter, or a decision by any court of competent Iurisdlcnon within the United States or w~thin the State of Florida or the State of New York shall be rendered ~vhlch, in the reasonable judgment of the Underwriter, materially adversely affects the market price or marketability of the Bonds or causes any ~nformafion in the Official Statement to be rmsleading m any material respect, or prior to Closing, Moody's Investor's Service, Inc. ("Moody's") and Standard & Poor's Rating Services, a division of The McGraw-Hill Companies ("Standard & Poor's"), shall ~nform the Ctty or the Underwriter that the Bonds will not be rated at least "Aaa" and "AAA," respectively, or the Insurer shall reform the City or the Underwriter that ~t wtll not deliver its Bond Insurance Pohcy on the Closing Date. documents: f. At or prior to the Closing Date, the Underwriter shall receive the following i. The Resolution cerufied by the CitT Clerk under seal as having been duly adopted by the City and as being m effect, xv~th such supplements, modifications or amendments as may have been agreed to by the Underwriter. ii. A final approving opwaon of Greenburg Traurig, P.A., Bond Counsel, addressed to the C~ty, dated the date o:' the Closing, m substanually the form included m the Officml Statement as Appendix D. id. A letter of Bond Counsel addressed to the Underwriter and the Insurer, and dated the Closing Date, to the effect that thetr final approving opinion referred to in Section 7(f)00 hereof may be rehed upon by the Underxvriter and the Insurer to the same extent as If such opinion were addressed to the Underxvnter and the Insurer iv. An opinion of Susan A. Ruby, Esqmre, City Attorney, addressed to the City, the Underwriter and the Insurer, and dated the date of the Closing, substanually to the effect that' (1) the City. is a municipal corporauon duly ex,sung under the Consntunon and laxvs of the State of Florida and has good right and lawful authority to adopt the Resolution, execute and dehver the C~' Documents, and issue the Bonds, to secure the Bonds in the manner provided in the Resolunon, to carD, out ~ts po~vers under the Act and to perform all of its obhgauons under thc Resolunon, the Bonds and the City Documents; (2) the Resolution has been duly adopted by the City and the Bonds, the City Documents have been duly authorized, executed and delivered by the City, and the Resoluuon and the Bonds, when duly authenticated, and the City Documents, when duly executed by the other parties thereto consmute valid, legal and binding agreements of the City enforceable in accordance with their respective terms; provided, however, the enforceabihty thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other stmilar laws affecting creditors' rights generally; (3) no consent, waiver or any other action by any person, board or body, public or private, other than the approval of the City which has been duly and validly obtained, is required as of the date hereof for the City to issue the Bonds or adopt the Resolution, or to execute and deliver the City Documents, or to perform its obligations under any of the foregoing, except she need not express any opinion regarding any blue sky or legal investment laws; (4) to the best of her knowledge, the adopnon of the Resolution and the execution and dehvery of the City Documents and the Bonds and compliance with the provisions of each do not and wdl not conflict with or consutute a breach of or default under any apphcable law or adrmnistrative regulauon of the State of Florida, or any applicable judgment or decree or any trust agreement, loan agreement, bond, note, resolunon, orchnance, agreement or other instrument to whmh the City is a part or is otherwise sublect; (5) except as otherwise chsclosed m the Official Statement, there is no hfigafion or proceeding, pending or, to the best of her knoxvledge, threatened, challenging the creauon, orgamzauon or existence of the City or the vahdity of the Bonds or the City Documents or seeking to restrain or enlom any of the transacnons referred to therein or contemplated thereby, or xvhich, ua any manner, quesuons the right of the City to issue the Bonds or to pledge the Pledged Funds for repayment of the Bonds; (6) there is no liugauon or proceeding pending to which the City is a party, the ulumate dlsposluon of which would have a material adverse effect on the finances or operations of :he CiD' or its ability to meet its obligations with respect to the Bor:,ls; (7) nothing has come to her attenuon that xvould lead her to believe that the Official Statement as of ~ts date or as of the date hereof contains any untrue statement of a material fact or ormts to state a material fact necessary to make the statements therein, in the light of the cn:cumstances under which they were made, not rmsleading; (8) the Official Statement has been duly authorized, executed and dehvered by the Ctty, and the City has consented to the use thereof by the Underwriter; and (9) the C~ty ~s laxvfully empmvered to pledge and grant a hen on the Pledged Funds, for the payment of the pnnclpal of and interest on the Bonds. v. A cernficate, xvlmch shall be true and correct at the nme of Closing, signed by the City Manager and the Finance Director or such other officials sausfactory to the Underwriter, and m form and substance sansfactory to the Undet-,vnter, to the effect that, to the best of then' knoxvledge and behef (1) the representations, warranties and covenants of the City contained herein are true and correct in all material respects as of the Closing Date and that the City has satisfied all conditions to be performed or sausfied hereunder at or prior to Closing; (2) the Official Statement did not as of its date, and does not as of the Closing Date, contain any untrue statement of a material fact or omit to state a material fact which should be included thereto for the purposes for which the Official Statement is to be used, or which ~s necessary ~n order to make the statements contained therein, in light of the circumstances in which they were made, not rmsleadmg (provided, that no opinion need be expressed regarding the mformauon contained thereto relating to the Insurer, the Bond Insurance Pohcy, DTC and its book- entry system); 0) that, except as disclosed ~n the Official Statement, no htigation or other proceechngs are pending or, to his or her knowledge, threatened against the City in any court or other tribunal of competent jurisdiction, State or Federal, in any way 0) restraining or enjoining the ~ssuance, sale or dehvery of any of the Bonds, or (n) quesuoning or affecung the validity of the C~ty Documents, the Bonds, the Resoluuon or the pledge by the C~ty to the Bondholders of the Pledged Funds, or ('iii) questtoning or affecung the vahdity of any of the proceedings for the authorization, sale, execunon, issuance or delivery of the Bonds or (iv) questiomng or affecting (A) the organizauon or e,,astence of the C~ty or the rifle to office of the officers thereof or 03) the power or authority of the C~ty to receive the Pledged Funds or (v) asserttng that the Prehminary Official Statement or the Official Statement contains any untrue statement of a material fact or omits any material fact necessary to make the statements therein, in hght of the crrcumstances under which they were made, not rmsleading; (4) that except as disclosed m the Officml Statement, the City is not ~n default nor has been m default at anytime after December 31, 1975 as to princtpal or interest with respect to an3' obhgation issued or guaranteed by the C~ty; (5) that no event affecting the City has occurred since the date of the Officml Statement that should be disclosed in tl2e Official Statement for the purposes for which it ~s to be used or that ~s necessary to be disclosed thereto in order to make the statements and mformauon thereto not m~sleachng m any material respect; and (6) that since the date of the financial statements ~ncluded m the Official Statement, (i) no material adverse change has occurred in the financml condiuon of the City and 00 the City has not incurred any material habflities other than m the ordinary' course of business, except as set forth m or contemplated by the Officml Statement. An opxmon of Greenburg Traurig, P A., as Bond Counsel, addressed to the C~ty and the Underxvnter, and dated the Closing Date, to the effect that: (1) with respect to the ~nformation in the Officml Statement and based upon sa~d firm's revmxv of thc Official Statement, as Bond Counsel: (A) it is of the opinion that the mformatton ~n the Official Statement under the headings "INTRODUCTION," "DESCRIPTION OF THE BONDS -- General," "DESCRIPTION OF THE BONDS - Redemption Provisions," "SOURCE OF PAYMENT AND SECURFi~' FOR THE BONDS," "CONTINUING DISCLOSURE UNDERTAKING," (except for the financial and stausucal data 10 contained in any such headings, as to which no view need be expressed), and "APPENDIX C - The Resolution" insofar as such information purports to be descriptions or summaries of the Resolunons, the Bonds or state and federal laws to the extent ~ndicated thereto, are accurate and fair statements or summaries of the matters set forth or the documents referred to therein; and (]3) the statements on the cover page and under the secuon captioned "TAX EXEMPTION" insofar as such statements summarize certain provisions of the tax law, regulauons, ruhngs and notices, are fair and accurate statements of the provisions so summarized; and (2) the Bonds are exempt from registration under the Securities Act of 1933, as amended, and the Resolution is exempt from qualification as an indenture under the Trust Indenture Act of 1939, as amended. vii. A certtficate of an authorized representative of the Registrar, as Paying Agent to the effect that: (1) the Registrar and Paying Agent Is a national banking association duly organized, validly e~sfing and in good stanchng under the laws of the United States of America and ~s duly authorazed to exercise trust powers; (2) the Registrar and Paying Agent has all the requisite authority, power, hcenses, permats and franchises, and has full corporate power and legal authority to execute and perform ~ts functaons under the Resolunon and any other documents to which ~t is a party (hereto, the "Bond Documents"); (3) the performance by the Registrar and Paying Agent of its funcnons under the Resoluuon and the Bond Documents will not result in any vaolanon of the Arncles of Association or Bylaws of the Registrar and Paying Agent, any court order to which the Registrar and Paying Agent is subject or any agreement, indenture or other obligauon or instrument to which the Registrar and Paying Agent as a part3~ or by which the Registrar and Paying Agent is bound, and no approval or other acuon by any governmental authoraty or agency having supervisory authority over :he Registrar and Paying Agent ~s reqmred ~n order for the R~_g~strar and Paying Agent to perform ,ts funcUons under the Resoluuon and the Bond Documents, (4) the Bond Documents constitute vahd and binding obligations of the Registrar and Paying Agent an accordance w~th ~ts terms, sublect to applicable bankruptcy, ~nsolvency, reorgamzanon, moratorium and other sinular laws affecting creditors' rights generally and subject, as to enforceabflaty, to general pnncaples of eqmty; and (5) to the best of such authorized representauve's knowledge, there ~s no action, stat, proceeding, or anvestiganon at laxv or in equity before any court, public board or body pendang or, to his or her knoxvledge, threatened against or affecung the Registrar and Paying Agent where~n an unfavorable dec~saon, mhng or finding on an issue rinsed by any party, thereto is hkely to materially and adversely affect the ab~h~; of the Registrar to perform ~ts obhgations under the Resolutton and the Bond Documents. vm. Letters of Moody's and Standard & Poor's to the effect that the Bonds have been assigned a ranng no less Gvorable than "Aaa" and "AAA," respecuvely, which ratings shall be m effect as of the Closang Date 11 ix. Duly executed cop~es of the Bond Insurance Pohcy, the City Documents and the Bond Documents in form acceptable to the Underwriter and bond counsel. x. An opinion of general counsel to the Insurer and a certificate of an officer of the Insurer dated the date of the Closing and addressed to the Underwriter and the City, concerning the Insurer, the Policy, and the mformauon relating to the Insurer and the Bond Insurance Policy, contained in the Official Statement, m form and substance sausfactory to the Underwriter. xi. A certificate executed by the Finance Dn:ector dated the Closing~ Date, satisfactory to Bond Counsel setting forth the facts, esttmates and circumstances which estabhsh that it ~s not expected that the proceeds of the Bonds xvill be used in a manner that would cause the Bonds to be "arbitrage bonds" within the meamng of the Internal Revenue Code of 1986, as amended, and to the best of the knowledge and behef of such officer, such expectations are reasonable. xh. A letter of representations of the Issuer to DTC. Internal Revenue Service Form 8038-G. yav. State of Florida Dims~on of Bond Finance Form BF2003/2004-B. xv. Such adchuonal legal opinions, certificates, instruments and other documents as the Under~vnter may reasonably request. If the C~ty shall be unable to sausfy the conditions to the obligations of the Underwriter to purchase, to accept dehvery of and to pay for the Bonds contained m th~s Purchase Contract and the Underwriter does not waive such mab~hty in ~vriung, or if the obhgauons of the Underwriter to purchase, to accept dehvery of and to pay for the Bonds shall be terminated for any reason permitted by this Purchase Contract, th~s Purchase Contract shall terminate, the good faith deposit described m Section 2 hereof shall be returned tc the Underxvriter and neither the Underwriter nor the City shall be under any further obhgauon hereunder, except that the respecuve obligauons of the City and the Under~vnter set forth m Secuon 8 hereof shall continue m full force and effect. 8. Expenses. The Underxvriter shall be under no obhgauon to pay, and the City shall pay, any expense incident to the performance of the C~ty's obhgauons hereunder including, but not hmited to: (a) the cost of preparation, pnnting and dehvery of the Resolution; (b) the cost of preparauon and printing of the Bonds; (c) the fees and expenses of Bond Counsel; (d) the fees and expenses of Pubhc Financial Management, Inc., the C~ty's fmanctaI advisor for the Bonds; (e) the fees and d~sbursements of any other experts, consultants or advisors retmned by the C~ty; (f) fees for bond ratings; (h) the fees and expenses of the Registrar and Paying Agent; and (h) the costs of preparing, prmung and dehvering the PreLtrmnary Official Statement and the Officml Statement and any supplements or amendments thereto. The Underwriter shall pay: (a) the cost of prmtmg and dehvery of this Purchase Contract; (b) the cost of all "Blue Sky" and legal investment memoranda and related filing fees; (c) all adverUsmg expenses; and (d) all other expenses recurred by it in connecuon xv~th the pubLtc offering of the Bonds including the fees and d~sbursements of counsel for the Underxvnter. In the event that rather party shall have prod obhgauons of the other as set forth ~n th~s Secuon 8, adlustment shall be made at the ume of the Closing. 12 9. Notices. Any notice or other communication to be gnven to you under this Purchase Contract may be given by mailing the same to the attention of the City Manager, at the address set forth on the first page hereof, and any such notice or other communicauon to be given to the Underwriter may be mailed to Bear Stearns, 225 N.E. M~zner Blvd., Boca Raton, Florida 33483, Attention: J.W. Howard. 10. Parties in Interest. This Purchase Contract is made solely- for the benefit of the City and the Underwriter and no other party or person shall acquire or have any right hereunder or by virtue hereof. All of the C~ty's representanons, warranties and agreements m this Purchase Contract shall remain operaUve and in full force and effect and shall survive the delivery of the Bonds. 11. Waiver. Notw~thstanchng any provision herein to the contrary, the performance of any and all obhgations of the City hereunder and the performance of any and all condiuons contained herein for the benefit of the Underxvnter may be warred by the Underwriter, and the approval of the Undenvriter when required hereunder or the determination of thetr sausfacuon as to any document referred to herein shall be evidenced by its purchase of the Bonds. 12. No Liability. Neither the Commission, nor any of the members thereof, nor any officer, agent or employee thereof shall be charged personally by the Underwriter with any hability, or held hable to the Underwriter under any term or provision of thts Purchase Contract because of its executaon or attempted execuUon, or because of any breach or attempted or alleged breach thereof. 13. Governing Law. Th~s Purchase Contract, and the terms and condiuons herein, shall consutute the full and complete agreement between the City and the Underwriter with respect to the purchase and sale of the Bonds. Tl'ns Purchase Contract shall be governed by and construed in accordance xvlth the laws of the State of Florida. 14. Operation of Warranties, Etc. All the representations, xvarranues, covenants and agreements of the C~ty in tlms Purchase Contract shall remain operative and m full force and effect as if made on the date hereof and the Closing Date, regardless of (1) any investtgation made by or on behalf of the Un,~'er~vnter or Counsel to the Underwriters or (n) delivery of and an) payment for the Bonds hereunder. 15. Section Headings. Secuon headings have been inserted m th~s Purchase Contract as a matter of convenience of reference only, and it is agreed that such section headings are not a part of this Purchase Contract and w~ll not be used in the interpretauon of any provisions of this Purchase Contract. 16. Severability. If any provision of th~s Purchase Contract shall be held or deemed to be, or shall in fact be, mvahd, inoperative or unenforceable as apphed in any particular case m any jurisdiction or jurischcuons, or in all lunschcuons because it confl~cts xv~th any provisions of any consutuuon, statute, or rule of public policy, or for any other reasons, such circumstances shall not have the effect of rendering the provision in questton mvahd, moperattve or unenforceable in any other case or c~rcumstances, or of rendering any other provision or provisions of this Purchase Contract invalid, moperauve or unenforceable to any extent xvhatever. 17. Execution of Counterparts. This Purchase Contract may be executed m any number of counterparts, all of xvh~ch taken together shah be one and the same instrument, and any parties hereto may execute this Purchase Contract by signing any such counterpart. The execution of this Purchase Contract has been duly authorized by the Commission. 18. Effectiveness. This Purchase Contract shall become effecuve upon the execution by the appropriate City officials of the acceptance hereof by the City and shall be valid and enforceable at the time of such acceptance. Very truly yours, BEAR STEARNS & CO., INC. By: j.w. Howard, Associate Director Accepted this __ day of December, 2002 by the City Comrmss~on of the City of Delray Beach, Florida By:. (Vice) Mayor 14 EXHIBIT A MATURITIES, AMOUNTS, INTEREST RATES, AND PRICES OR YIELDS $ SERIAL BONDS Maturities Interest 0une 1) Amounts Rates Yield 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Redemption A-1 EXHIBIT B DISCLOSURE STATEMENT The City Commission of the City of Delray Beach, Florida 100 N.W. First Avenue Delray Beach, Florida 33444 Re: $ , City of Delray Beach, Florida Utihties Tax Revenue Refunding Bonds, Series 2002 Laches and Gentlemen: In connection with the proposed issuance by the City of Delray Beach, Florida of $ of its Uulines Tax Revenue Refunding Bonds, Series 2002 (the "Bonds"), Bear Stearns (the "Underwriter") is underxvriung a pubhc offering of the Bonds. The purpose of this letter is to furnish, pursuant to the provisions of Section 218.385(6), Florida Statutes, certain mformauon in respect of the arrangements contemplated for the underwriting of the Bonds as follows: A. The nature and estimated amount of expenses to be recurred by the Underwriter in connecnon ~vith the purchase and reoffermg of the Bonds are set forth in Schedule I attached hereto. B. No person has entered into an understanding xvith the Underwriter, or to the knowledge of the Underwriter, with the City, for any paid or protmsed compensauon or valuable consideration, directly or indirectly, expressly or imphed, to act solely as an intermediary between the City and the Underwriter or to exercise or attempt to exercise any influence to effect any transacuon in the purchase of the Bonds. C. The underwriting spread, the difference between the price at xvhich the Bonds will be inlnally offered to the public by the Under~vnter and the price to be paid to the City for the Bonds, excluswe of accrued interest, xvfll be $.__ per $1,000 of Bonds issued. D. As part of the estimated underxvnting spread set forth in Paragraph (c) above, the Under~vnter will charge a management fee of $ per $1,000 of Bonds ~ssued. E. No other fee, bonus or other compensation is estimated to be pa~d l~y the Underwriter m connection ~vith the issuance of the Bonds to any person not regularly employed or retained by the Under~vriter (including any "finder" as defined m Section 218.3860)(a), Florida Statutes), except as specifically enumerated as expenses to be recurred by the Underwriter, as set forth in Paragraph (a) above. B-1 We understand that you do not reqmre any further disclosure from pursuant to Section 218.385(6), Florida Statutes. BEAR STEARNS & CO., INC. 225 N.E. Mizner Boulevard De[ray Beach, Florida 33484 the Underwriter, By: J.W. Howard, Associate Director B-2 SCHEDULE I UNDERWRITERS ESTIMATED EXPENSES MSRB, CUSIP, DTC, PSA Travel, Closing Communicauons/Adverusing Day Loan Counsel Fees Miscellaneous Total Expenses ~)er $1,000) B-3 EXHIBIT C TRUTH-IN BONDING STATEMENT The following truth-in-bonding statement is prepared pursuant to Secuon 218.385(2) and (3), Florida Statutes, and is for informational purposes only. It shall not affect or control the actual terms and condiuons of the debt or obligauons. The City of Delray Beach, Florida (the "C~ty") is proposmg to ~ssue $ of City of Dekay Beach, Florida, Uti_hues Tax Revenue Refunding Bonds, Series 2002 (the "Bonds") for the purpose of providing funds to: (i) refund, on a current basis, the City's outstanding Uulities Tax Revenue Refunding and Improvement Bonds, Series 1992 (the "Series 1992 Bonds"); (ii) advance refund the City's outstanding Utthties Tax Revenue Refunding and Improvement Bonds, Series 1994 (the "Series 1994 Bonds"); ('~) advance refund the C~ty's outstanding Utilines Tax Revenue Bonds, Series 1995 (the "Series 1995 Bonds"); 0v) refund, on a current basis, the C~ty's Ufihfies Tax Revenue Bonds, Subordinate Series 1996 (the "Series 1996 Bonds"); (v) refund, on a current basis, the City's Unhties Tax Revenue Bonds, Subordinate Series 1998 (the "Series 1998 Bonds"); (vi) provide a Reserve Account Credit Facility Substitute (as defined m the Resolution); and (vii) pay certain costs of issumg the Bonds, including payment of the prermum for a municipal bond insurance pohcy (the "Bond Insurance Pohcy") to be purchased from Financial Security Assurance, Inc. (the "Insurer"). The Bonds are expected to be repmd over a period of approximately 14 years. At the interest rates set forth in Exhibit A of the Purchase Contract, total interest pa~d over the life of the Bonds reclusive of accrued interest w~ll be $ The Bonds are secured by a fn:st hen upon and a pledge of the proceeds of the Cny's Ufilines Tax deposited in the Sinking Fund (as defined ~n the Resolution) and all moneys on deposit to the credit of certain funds and accounts created under the Resolution and the earnings on the investment thereof, all in the manner and to the extent described in the Resolution (collectively, the "Pledged Funds"). Because the Bonds xvdl refund the bonds set forth above and will result in a lower debt service on such bonded ~ndebtedness, authorizing the Bonds will not ~csult in any additional such Pledged tunds not being available to finance other projects of the C~ty ExhibitC PRELIMINARY OFFICIAL STATEMENT DATED DECEMBER 4,2002 NEWISSUE RATINGS: (see "Ratings" herein) tax. S ~ bourn, er, "Tax Exempnon" herein for a descrtption gr tvrtain txtx'r taxes imposed on ~. Bovd Co. o~d is also q' doe opirdm thar the 220, Florida Statutes, on imer~ ~ imorm or tm~ts on debt obligau~s ounM by a~:rratiom, hades and sav. r~ as sooatwns CITY OF DELRAY BEACH, FLORIDA $16,500,000' Utilities Tax Revenue Refunding Bonds Series 2002 Dated: December 1, 2002 Due: June 1, as shown on the inside cover The City of Delray Beach, Florida Utilities Tax Revenue Refunding Bonds, Series 2002 (the "Bonds") will be issued as fully registered bonds without coupons in principal denominations of $5,000 or any integral multiples thereof. The Bonds will be registered in the name of Cede & Co., as nominee for the Depository Trust Company, New York, New York (~DTC'), and DTC will act as securities depository for the Bonds. So long as Cede 8: Co is the registered owner of the Bonds, principal of and premium, if any, and interest on the Bonds will be paid directly to Cede & Co., as nominee for DTC, by Wells Fargo Bank, National Assochtion, having a designated corporate trust office in Coral Springs, Florida as Paying Agent for the Bonds (the "Paying Agent"). Interest on the Bonds is payable sen'u-annually, commencing June 1, 2003, and each December 1 and June 1 thereafter. The Bonds are subject to optional redemption and mandatory sinking fund redemption prior to their stated maturity under the terms and conditions described hereim This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors must read the entire Official Statement to obtain information essential to making an informed investment decision. The Bonds wxll be issued by the City of Delray Beach, Florida (the "City") to (~ refund, on a current basis, the City's outstanding Utilities Tax Revenue Refunding and Improvement Bonds, Series 1992; (h) advance refund the City's outstanding Utilkles Tax Revenue Refunding and Improvement Bonds, Series 1994; (iii) advance refund the City's outstanding Utilities Tax Revenue Bonds, Series 1995; (iv) refund, on a current basis, the Gty's Utihties Tax Revenue Bonds, Subordinate Series 1996; (v) refund, on a current basis, the City's Utdities Tax Revenue Bonds, Subordinate Series 1998; (vi) provide a Reserve Account Credk Facility Substitute (as hereinafter defined); and (vii) pay the costs of issuing the Bonds. The Bonds are hmited obligations of the City, payable solely from and secured solely by a pledge of and first priority lien upon the Pledged Revenues (which consist of the proceeds of the City's Utilities Tax deposked in the Sinking Fund), in the manner herein described. The Bonds and the interest thereon shall not be and shall not constitute an indebtedness of the aty or of the State of Florida or any political subdivision thereof within the meaning of any Constitutional, statutory, charter or other limitation of indebtedness, and neither the full faith and credit nor the taxing powers of the State of Florida or the City are pledged as security for the payment of the principal of, redemption premium, if any, or interest on the Bonds and no holder or holders of any Bonds shall ever have the right to compel the exercise of the ad valorem taxing powers of the City, or taxation in any form of anyreal property therein to paythe Bonds or the interest thereon. The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Bonds b~ FINANCIAL SECURITY ASSURANCE lNG For a discussion of the terms and provisions of such policy, including the limitations, see "MUNICIPAL BOND INSURANCE" herein. AMOUNTS, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS Serial Bonds Principal Interest Price or Cusip Amount Maturity Rate Yield Numbers CITY OF DELRAY BEACH, FLORIDA 100 N.W. 1st Avenue Delray Beach, Florida 33444 CITY COMMISSION David W. Schmidt, Mayor Jeff Perlman, Vice Mayor Patricia Langley Archer, Vice Mayor Jon 1L Levinson, Commissioner Aberta Perry McCarthy, Commissioner CITY OFFICIALS David T. Harden, City Manager Joseph M. Safford, Finance Director Rebecca S. O'Connor, Treasurer Richard C Hasko, Director of Environmental Services Randal Krejcarek, City Engineer Barbara Garito, City Clerk CITY ATTORNEY Susan A. Ruby, Esquire BOND COUNSEL Greenburg Taurig, P.A. West Palm Beach, Florida UNDERWRITER'S COUNSEL Blank Rome Comisky & McCauley LLP Boca Raton, Florida and Philadelphia, Pennsylvania FINANCIAL ADVISOR Public Financial Management, Inc. Orlando, Florida No dealer, broker, salesperson or other person has been authorized by the City or the Underwriter to give any information or to make any representations with respect to the Bonds other than those contained in the Official Statement, and, if given or made, such information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement is not to be construed as a contract with the purchasers of the Bonds. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been obtained from the City, Financial Security Assurance Inc. ("Financial Security"), DTC and other sources which are believed to be reliable but it is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation of, the Underwriter. The City makes no representation as to any information from sources other than the information provided by the City. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale of the Bonds, under any circumstances, create any implication that there has been no change in any information set forth herein since the date hereof or the date as of which particular information is given, if earlier. This Official Statement is not to be construed as a contract or agreement between the City or the Underwriter and the purchasers or owners, from time to time, of any of the Bonds. IN GONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERAT.I.OT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT LEVELS ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. The following Official Statement contains a general description of the Bonds and sets forth certain information about the City. All summaries and descriptions herein of documents, instruments and agreements, including the Bonds, are qualified in their entirety by reference to the complete, definitive forms of the Bonds and such documents, instruments and agreements, copies of which are on file at the office of the Paying Agent. THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACT. THE REGISTRATION OR QUALIFICATION OF THE BONDS IN ACIGORDANCE WITH APPLICABLE PROVISIONS OF THE SECURITIES LAWS OF CERTAIN STATES, IF ANY, IN WHICH THE BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN CERTAIN OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE BONDS OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. Other than with respect to information concerning Financial Security contained under the caption "BOND INSURANCE" and Appendix E specimen "Municipal Bond Insurance Policy" herein, none of the information in this Official Statement has been supplied or verified by Financial Security and Financial Security makes no representation or warranty, express or implied, as to (i) the accuracy or completeness of such information; (ii) the validity of the Bonds; or ('fii) the tax-exempt status of the interest on the Bonds. TABLE OF CONTENTS Page No. INTRODUCTION .......................................................................................................................................... 1 PURPOSE OF BONDS .................................................................................................................................. 1 PLAN OF REFUNDING .............................................................................................................................. 2 Gurrent Refunding ...................................................................................................................................... 2 Advance Refunding .................................................................................................................................... 2 Deposit to Escrow Agreement ................................................................................................................. 2 ESTIMATED SOURCES AND USES OF FUNDS ................................................................................. 3 DESCRIPTION OF THE BONDS .............................................................................................................. 4 General ......................................................................................................................................................... 4 Book-Entry Only System .......................................................................................................................... 4 Discontinuance of Book-Entry Only System ......................................................................................... 7 Redemption ................................................................................................................................................. Notice of Redemption ............................................................................................................................... SOURCE OF PAYMENT AND SECURITY FOR THE BONDS ....................................................... 9 General ......................................................................................................................................................... 9 Covenant Concerning Utilities Taxes ...................................................................................................... 9 Reserve Account ....................................................................................................................................... 10 Flow of Funds ........................................................................................................................................... 10 Additional Bonds ...................................................................................................................................... 12 UTILITIES TAXES ....................................................................................................................................... 12 BOND INSURANCE ................................................................................................................................... 15 Bond Insurance Policy ............................................................................................................................. 15 Financial Security Assurance Inc ............................................................................................................ 15 THE CITY ....................................................................................................................................................... 15 DEBT SERVICE REQUIREMENTS FOR THE BONDS ................................................................... 16 RATINGS ........................................................................................................................................................ 16 LEGALITY ...................................................................................................................................................... 17 TAX EXEMPTION ....................................................................................................................................... 17 UNDERWRITING ........................................................................................................................................ 18 CONTINUING DISCLOSURE UNDERTAKING .............................................................................. 19 ENFORCEABILITY OF REMEDIES ...................................................................................................... 21 LITIGATION ................................................................................................................................................. 22 GENERAL PURPOSE FINANCIAL STATEMENTS .......................................................................... 22 FINANCIAL ADVISOR .............................................................................................................................. 22 VERIFICATION OF MATHEMATICAL COMPUTATIONS ........................................................... 22 MISCELLANEOUS ....................................................................................................................................... 23 AUTHORIZATION OF AND CERTIFICATION CONCERNING OFFICIAL STATEMENT23 APPENDIX A - APPENDIX B - APPENDIX C - APPENDIX D - APPENDIX E -- APPENDIX F -- General Information Concerning the City of DelrayBeach and Palm Beach General Purpose Financial Statements of the City of Delray Beach Summary of Certain Provisions of the Bond Resolution Form of Bond Counsel Opinion Specimen Municipal Bond Insurance Policy Specimen Municipal Bond Debt Service Reserve Insurance Policy OFFICIAL STATEMENT $16,500,000~ City of Delray Beach, Florida Utilities Tax Revenue Refunding Bonds Series 2002 INTRODUCTION The purpose of this Official Statement, which includes its cover page and certain enclosed Appendices, is to furnish information with respect to the issuance by the City of Delray Beach, Florida (the "City') of its Utilities Tax Revenue Refunding Bonds, Series 2002 (the ~Bonds') in the aggregate principal amount of $16,500,000. The Bonds are being issued under the authority of and in full compliance with the Constitution and laws of the State of Florida, including Chapter 166, Florida Statutes, as amended and supplemented, the City Charter, as amended and supplemented, and other applicable provisions of law. The Bonds are being issued more specifically pursuant to Resolution No. 98-91, adopted by the City Commission of the City (the "Commission") on December 3, 1991, as amended and supplemented which authorized the issuance from time to time of Utilities Tax Revenue Bonds in one or more series (the "Original Resolution") and Resolution No. 90-02 adopted on December 3, 2002 authorizing the issuance of the Bonds and amending certain provisions of the Original Resolution (the "Supplemental Resolution"). The Original Resolution and the Supplemental Resolution are referred to herein as the "Bond Resolution". The Bonds are special, limited obligations of the City payable solely from and secured solely by a pledge of and first priority lien upon the Utilities Tax revenues levied and collected by the City and deposited in the Sinking Fund created and established pursuant to the terms and provisions of the Bond Resolution (sometimes hereinafter referred to as the "Pledged Revenues"), as further described under the heading "Utilities Taxes" herein. Capitalized terms not otherwise defined in this Official Statement shall have the same meanings assigned to such terms in the Summary of the Bond Resolution, which is set forth in Appendix "C". The description of the Bonds, the Bond Resolution, and certain statutory provisions as well as the information from various reports and statements contained in this Official Statement are not comprehensive or definitive. All references to such documents, reports and statements are qualified by the actual content of such documents, reports and statements, copies of which may be obtained by contacting the Director of Finance, City of Delray Beach, Florida, 100 N.W. First Avenue, Delray Beach, FL 33444, (561) 243-7115 or during the offering period of the Bonds from Public Financial Management, Inc., financial advisor to the City (407) 648-2208. PURPOSE OF BONDS The Bonds shall be issued by the City to (~ refund, on a current basis, the City's outstanding Utilities Tax Revenue Refunding and Improvement Bonds, Series 1992 (the "Series 1992 Bonds"); (ii) advance refund the City's outstanding Utilities Tax Revenue Refunding and Improvement Bonds, Series 1994 (the "Series 1994 Bonds"); (iii) advance refund the City's outstanding Utilities Preliminary, subject to change. Tax Revenue Bonds, Series 1995 (the ~Series 1995 Bonds"); (iv) refund, on a current basis, the City's Utilities Tax Revenue Bonds, Subordinate Series 1996 (the "Series 1996 Bonds"); (v) refund, on a current basis, the City's Utilities Tax Revenue Bonds, Subordinate Series 1998 (the "Series 1998 Bonds"); (vi) provide a Reserve Account Credit Facility Substitute in an amount equal to the Debt Service Reserve Requirement for the Bonds; and (vii) pay certain costs incurred in connection with the issuance of the Bonds including the premium for Bond Insurance. PLAN OF REFUNDING Current Refunding A portion of the proceeds of the Bonds along with other legally available funds, will be used to refund, on a current basis: (i) $4,810,000 aggregate principal amount of the Series 1992 Bonds; $2,567,000 aggregate principal amount of the Series 1996 Bonds; and ('fii) $277,000 aggregate principal amount of the Series 1998 Bonds. The current refunding is being undertaken for the purpose of effectuating debt service cost savings to the City. The monies required to refund the Series 1996 Bonds and the Series 1998 Bof~ds will be derived from certain of the proceeds of the sale of the Bonds. On December 19, 2002', the Citywill make the payment of the principal of and accrued interest on the Series 1996 Bonds and the 1998 Bonds to SunTrust Bank, South Florida, N.& (now known as SunTrust Bank). Advance Refunding A portion of the proceeds of the Bonds and other available moneys of the City will be used to advance refund: (i) $5,810,000 aggregate principal amount of the Series 1994 Bonds; and (h~ $1,875,000 aggregate principal amount of the Series 1995 Bonds. The advance refunding is being undertaken for the purpose of effectuating debt service cost savings to the City. Deposit to Escrow Agreement Ce~xain of the proceeds of the sale of Bonds, along with other legally available funds, will be irrevocably deposited with Wells Fargo Bank, National Association, as escrow agent for the Series 1992 Bonds, the Series 1994 Bonds and the Series 1995 Bonds (the "Escrow Agent") pursuant to an Escrow Deposit Agreement (the "Escrow Deposit Agreement"), by and between the City and the Escrow Agent. The Escrow Deposit Agreement requires the Escrow Agent to use certain of the monies held in escrow thereunder to purchase direct obligations of the United States of America (such direct obligations are collectively referred to as "Government Obligations"). The Government Obligations will mature at such times in such amounts so that sufficient monies will be available from such maturing principal, together with interest income from the Government Obligations, and cash balances, if any, to make scheduled debt service payments on the Series 1994 Bonds and the Series 1995 Bonds and to redeem the Series 1992 Bonds, the Series 1994 Bonds and the Series 1995 Bonds at the respective first optional redemption dates. See "VERIFICATION OF MATHEMATICAL COMPUTATIONS", herein. Preliminary, subject to change. ESTIMATED SOURCES AND USES OF FUNDS The proceeds to be received from the sale of the Bonds are expected to be applied as follows: Sources of Funds Principal Amount of Bonds Less Original Issue Discount Accrued Interest Other Legally Available Funds Total Sources of Funds Uses of Funds Deposit to Interest Account (1) Deposit to Escrow Fund Paymem to SunTrust Bank for the Series 1996 Bonds and the Series 1998 Bonds Underwriter's Discount Costs of Issuance (2) Total Uses of Funds O) (2) Represents Accrued Interest. Includes the premium for the Municipal Bond Insurance Policy [and the premium for the Reserve Account Credit Facihty Substitute.] DESCRIPTION OF THE BONDS The Bonds shall be issued in fully registered form in denominations of $5,000 and integral multiples thereof and shall be dated December 1, 2002, shall bear interest (payable semi-annually on June 1 and December 1 of each year commencing June 1, 2003) at the rates per annum and shall mature on the dates and in the amounts, all as set forth on the inside cover page of this Official Statement. Wells Fargo Bank, National Association having a designated corporate trust office in Coral Springs, Florida will serve as bond registrar (the "Bond Registrar") and paying agent (the "Paying Agent") for the Bonds. The Bonds will be registered in the name of Cede & Co., as nominee of the Depository Trust Company, New York, New York ("DTC"). So long as the Bonds shall be in book-entry form, the principal of and interest on such Bonds is payable by check or draft mailed or wire transfer to Cede & Co., as nominee of DTC and registered owners thereof for redistribution by DTC to the DTC Participants (as herein defined) and in turn to Beneficial Owners (as herein defined) as described below under "Book-Entry Only System". If the book-entry system should be discontinued, certificated Bonds will be issued to the Beneficial Owners, who will then become the registered owners thereof. See "Discontinuance of Book-Entry Only System" below. Book-Entry Only System The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds under a book-entry system with no physical distribution of the Bonds made to the public. The Bonds will initially be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee), or such other name as may be requested by an authorized representative of DTC One fully-registered Bond certificate will be issued for the aggregate principal amount of each maturity of the Bonds and will be deposked with DTC. DTC, the world's largest deposkory, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC holds and, provides asset servicing for over 2 million issues of U.S. and non-U.S, equity issues, corporate and municipal debt issues, and money market instruments from over 85 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of securities transactions, such as transfers and pledges, in deposked securities through electronic computerized book-entry changes in Direct Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include both U.S. and non- U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Cleating Corporation ("DTCC"). DTCC, in mm, is owned by a number of its Direct Participants and members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC, MBSCC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange, LLC and the National Association of Securities Dealers, Inc. Access to the DTC 4 system is also available to others such as both U.S. and non-U.S, securities brokers and dealers, banks and trust companies that clear through or maintain a custodial relationship with a Direct Participant, ekher directly or indirectly ("Indirect Participants"). The rules applicable to DTC and its Direct and Indirect Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in rum to be recorded on the Direct and Indirect Participants records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC The deposk of Bonds with DTC and their registration in the name of Cede & Co., or such other DTC nominee, does not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners, or in the altemative, Beneficial Owners may wish to provide their names and addresses to the Paying Agent and request that copies of the notices be provided directly to then~ Redemption notices shall be sent to DTC If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Paying Agent as soon as possible after the record date. The Omnibus Proxy assigns Cede & Cods consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal, premium, if any, and interest payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC, DTC's practice is to credk Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or Paying Agent, on the payable date in accordance with their respective holdings shown on DTC's records. Payments by Direct and Indirect Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Direct and Indirect Participants and not of DTC (or its nominee), the City or the Paying Agent subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium, if any, and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Paying Agent, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities deposkory with respect to the Bonds at any time by giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be prepared, executed and delivered. The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository,. In that event, either a successor securities depository will be selected bythe Cityor Bond certificates will be prepared, executed and delivered. In the event of insolvency of DTC, if DTC has insufficient securities in its custody (e.g., due to theft or loss) to satisfy the claims of its Direct Participants with respect to deposited securities and is unable by application of (i) cash deposits and securities pledged to DTC to protect DTC against losses and liabilities, (h) the proceeds of insurance maintained by DTC and/or its Direct Participants or Indirect Participants, or (ih~ other resources, to obtain securities necessary to eliminate the insufficiency, no assurances can be given that Direct Participants will be able to obtain all of their deposited securities. THE CITY, THE BOND REGISTRAR AND THE PAYING AGENT WILL NOT HAVE ANY RESPONSIBILITY OR OBLIGATION TO DTC PARTICIPANTS, BENEFICIAL OWNERS OR OTHER NOMINEES OF SUCH BENEFICIAL OWNERS FOR (A) SENDING TRANSACTION STATEMENTS; (B) MAINTAINING, SUPERVISING OR REVIEWING THE ACCU1UkCY OF ANY RECORDS MAINTAINED BY DTC OR ANY DTC PARTICIPANT OR OTHER NOMINEES OF SUCH BENEFICIAL OWNERS; (C) PAYMENT OR THE TIMELINESS OF PAYMENT BY DTC TO ANY DTC PARTICIPANT, OR BY ANY DTC PARTICIPANT OR OTHER NOMINEES OF BENEFICIAL OWNERS TO ANY BENEFICIAL OWNER, OF ANY AMOUNT DUE IN RESPECT OF THE PRINCIPAL OF OR REDEMPTION PREMIUM, IF ANY, OR INTEREST ON BOOK-ENTRY BONDS; (D) DELIVERY OR TIMELY DELIVERY BY DTC TO ANY DTC PARTICIPANT, OR BY ANY DTC PARTICIPANT OR OTHER NOMINEES OF BENEFICIAL OWNERS TO ANY BENEFICIAL OWNERS, OF ANY NOTICE (INCLUDING NOTICE OF REDEMPTION) OR OTHER COMMUNICATION WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE BOND RESOLUTION TO BE GIVEN 6 TO HOLDERS OR OWNERS OF BOOK-ENTRY BONDS; (E) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE EVENT OF ANY PARTIAL REDEMPTION OF BOOK-ENTRY BONDS, OR (F) ANY ACTION TAKEN BY DTC OR ITS NOMINEE AS THE REGISTERED OWNER OF THE BOOK- ENTRY BONDS. The information in this section concerning DTC and DTC's book-entry system has been obtained from DTC and other sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. Discontinuance of Book-Entry Only System General. In the event that the book-entrysystem is discontinued and the Beneficial Owners become the registered owners of the Bonds, interest on each Bond will be paid by check or draft of the Paying Agent mailed to the person in whose name the Bond is registered, on the fifteenth (15m) day of the month next preceding each interest payment date (the "Record Date"), provided, however at the request of any holder of at least $1,000,000 aggregate principal amount of a Bond, interest may be payable by wire transfer to the bank account number on file with the Paying Agent on or before the Record Date. Principal of, and redemption premium, if any, on the Bonds will be payable upon presentation and surrender of the Bonds at the designated corporate trust office of the Paying Agent. Negotiability, Registration and Cancellation. At the option of any registered owner of the Bonds and upon surrender at the designated corporate trust office of the Bond Registrar with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or his or her duly authorized attorney, the Bonds may be exchanged for Bonds of the same maturity of any authorized denominations. The Bond Registrar shall keep books for the registration of Bonds and for the registration of transfers of Bonds as provided in the Resolution. The Bonds shall be transferable by the registered owner thereof in person or by his attorney duly authorized in writing only upon the books of the City kept by the Bond Registrar and only upon surrender thereof together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or his or her authorized attomey. Upon the transfer of any such Bonds, the City shall issue in the name of the transferee a new Bond or Bonds. The Gty, the Paying Agent and the Bond Registrar shall deem and treat the person whose name any Bond shall be registered upon the books kept bythe Bond Registrar as the absolute owner of such bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond as the same becomes due and for all other purposes. All such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City, the Paying Agent, nor the Bond Registrar shall be affected by any notice to the contrary. Transfer and Exchange. In all cases in which the privilege of exchanging Bonds or transferring Bonds is exercised, the City shall execute and the Bond Registrar shall authenticate and deliver Bonds in accordance with the provision of the Resolution. All Bonds surrendered in any 7 such exchanges or transfers shall forthwith be delivered to the Bond Registrar and cancelled by the Bond Registrar in the manner provided by the Resolution. There shall be no charge for any such exchange or transfer of Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to pay tax, fee or other governmental charges required to be paid with respect to such exchange or transfer, Neither the City nor the Bond Registrar shall be required (a) to transfer or exchange Bonds for a period from the Record Date to the next ensuing payment date on such Bonds or fifteen (15) days next preceding any selection of Bonds to be redeemed or thereafter until after the mailing of any notice of redemption; or (b) to transfer or exchange any Bonds called for redemption. Redemption Optional Redemption. The Bonds maturing in the years __ through , inclusive, shall not be subject to redemption prior to their stated dates of maturity. The Bonds maturing on , , are subject to redemption prior to their stated maturity at the option of the City, from any funds legally available for such purpose, in part in any order of maturity selected by the City, and by lot within a maturity if less than an entire maturity is to be redeemed, on 1, 20__, or at anytime thereafter, or as a whole on ,1, 20__, or at anytime thereafter, at the redemption prices (expressed as percentages of the principal amount of such Bonds to be redeemed) as set forth below if redeemed in the following redemption periods, plus accrued interest to the redemption date: Redemption Periods (Both Dates Inclusive) Redemption Price [ ,200_ through ,200_ [ ,200_ through ,200_ [ ,200_ and thereafter Mandatory Sinking Fund Redemption of the Bonds. The Bonds maturing on ~, 20__ are subject to mandatory sinking fund redemption prior to maturity in part, by lot, on each ~ 1 in the years and amounts set forth below at a redemption price equal to 100% of the principal amount of such Bonds being redeemed plus accrued interest thereon to the date fixed for redemption: Principal Year Amount Notice of Redemption Notice of redemption of the Bonds shall be mailed, postage prepaid, by the Bond Registrar not less than thirty (30) days and not more than sixty (60) days, before the date fixed for redemption to all registered owners of the Bonds (or any portions thereof) to be redeemed, to their addresses, as they appear fifteen (15) days prior to the date such notice is mailed on the registration books for the Bonds or to such other address as shall be furnished to the Bond Registrar by such Bondholder. The Bond Registrar shall also mai/(by certified mail, return receipt requested) a copy of such notice for receipt not less than the second (2"~) business day prior to the date the notice of redemption is mailed to the Bondholders to: DTC, Midwest Securities Trust Company and the Philadelphia Depository Trust Company. Failure of any registered owner of Bonds that are to be redeemed to receive such notice of redemption, or any defect in such notice, shall not affect the validity of the proceedings for such redemption of any other Bonds for which proper notice has been given. When notice of redemption is given, the Bonds called for redemption will become due and payable on the redemption date at the redemption price stated in the notice, interest on any Bond duly called for redemption will ceased to accrue after the date fixed for redemption if funds sufficient for payment of the redemption price has been deposited with the Paying Agent. SOURCE OF PAYMENT AND SECURITY FOR THE BONDS The principal of, redemption premium, if any, and interest on the Bonds are payable from the Pledged Revenues and secured by a first lien on and pledge of the Pledged Revenues, which are the proceeds of the Utilities Tax deposked in the Sinking Fund created and established under the Bond Resolution. The Bonds shall not be and shall not constitute an indebtedness of the City or the State of Florida or any political subdivision thereof within the meaning of any Constitution, statutory, charter or other limitation of indebtedness, and neither the full faith and credit nor the taxing power of the City, the State of Florida, or any political subdivision thereof, are pledged or obligated as security for the payment of the principal of or interest on any Bond. The holders of the Bonds shall have no right to compel the exercise of the ad valorem taxing power of the City or taxation in any form of real property therein to pay the Bonds or the interest thereon. Covenant Conceming Utilities Taxes The City covenants under the Bond Resolution that, so long as any of the Bonds or any other bonds issued on parity therewith under the Bond Resolution remain Outstanding, it shall take all lawful action necessary or required to continue to entitle the City to receive the Utilities Tax proceeds and will not take any action which would impair or adversely affect its receipt of such proceeds. The City further covenants under the Bond Resolution that it shall not repeal the Utilities Tax Ordinance. To the extent necessary to meet its obligations under the provisions of the Bond Resolution, the City shall increase the rate of such Utilities Tax up to the highest rate permitted by law and shall enact every substitute or supplemental ordinance that may for any reason become legally necessary, or necessary to comply with the provisions of the Bond Resolution. The City is required under the Bond Resolution to keep proper books and records regarding the collection and uses made of the proceeds of the Utilities Tax, and that all records with respect thereto shall be available for inspection at all reasonable times by the holders of any of the Bonds. For a more detailed description of the requirements concerning the City's covenant as to the Utilities Taxes, 9 please refer to the Summary of Certain Provisions of the Bond Resolution comained in Appendix C attached to this Offichl Statement. Reserve Account The Bond Resolution provides for the establishment and maintenance of a Debt Service Reserve Account for each series of Bonds issued pursuant to the terms of the Bond Resolution in an amount equal to the Debt Service Reserve Requirement for such series of Bonds. Unless provided otherwise by resolution of the City, each such separate Debt Service Reserve Account shall constitute security only for the series of Bonds to which it rehtes. The City has established a Debt Service Reserve Account for the Bonds. The Bond Resolution provides that the Debt Service Reserve Requirement may be satisfied, in whole or in part, by a Reserve Account Credit Facility Substitute. A Reserve Account Credit Facility Substitute may consist of a surety bond, an unconditional direct pay letter of credit issued by any bank, a reserve account line of credk or a municipal bond insurance policy, and must be issued by such institutions whose credk enhancement facilities have resulted in a rating on similar obligations in the highest credit rating category by any Rating Agency and, in the case where such Reserve Account Credit Facility Substitute is provided by an insurance company, such insurer holds the highest policyholder rating accorded to insurers by any Rating Agency or Agencies then rating the Bonds and by A. M. Best & Company or any comparable service. For a general description of the restrictions and requirements relating to such Reserve Account Credit Facility Substitutes, please refer to the Summary of Certain Provisions of the Bond Resolution contained in Appendix C hereto. The Debt Service Reserve Requirement for the Bonds shall be in an amount equal to the lesser of (a) the maximum amount of the principal of and interest on the Bonds becoming due in any succeeding fiscal year, (b) one hundred twenty-five percent (125%) of the average annual amount of principal of and interest on the Bonds becoming due in any succeeding fiscal year, or (c) ten percent (10%) of the "net proceeds" (as such-term is defined under the Internal Revenue Code of 1986, as amended ("Code") for such purpose) of the Bonds. The Debt Service Reserve Requirement with respect to the Bonds will be satisfied in full at the time of issuance of the Bonds. The Debt Service Reserve Requirement for any other series of Bonds shall be determined by subsequem proceedings of the City. The Debt Service Reserve Account shall be funded, with respect to the Bonds, with a Reserve Account Credk Facility Substitute in the form of a Municipal Bond Debt Service Reserve Insurance Policy ("Reserve Account Policy") to be issued by Financial Security Assurance, Inc., which together with the moneys already on deposit therein, shall equal the Debt Service Reserve Requirement for the Bonds. The form of the Reserve Account Policy is as set forth in Appendix "F" to this Official Statement. Information about Financial Security Assurance Inc. is hereinafter set forth on page 15 under the heading "BOND INSURANCE--Financial Security Assurance Inc.'. Flow of Funds A brief summary of the deposits required to be made to the various funds and accounts established under the Bond Resolution is provided below. For a more detailed description of such 10 deposits, reference should be made to the Sumrmry of Certain Provisions of the Bond Resolution contained in Appendix C attached hereto. All or a portion of the Utilities Tax proceeds collected by the City each month will be deposited in the Sinking Fund in the following manner and amounts (such Utilities Tax proceeds deposited in the Sinking Fund are referred to herein as the "Pledged Revenues"): (4 On the fifteenth (15th) day of each month, beginning with the fifteenth (15~) day of the first full calendar month following the date of issuance of anysefies of bonds, to the credit of the Interest Account, an amount equal to the sum of one-sixth (1/6th) of the interest becoming due on the bonds on the next succeeding Interest Payment Date; On the fifteenth (15~) day of each month in each year, to the credit of the Principal Account, an amount equal to one-twelfth (1/12th) of the principal of all bonds, payable by their respective stated terms within the next succeeding twelve (12) months; On the fifteenth (15th) day of each month in each year, to the credit of the Bond Redemption Account, one-twelfth (1/12th) of the amount required for the payment of any Term Bonds required to be paid on the next succeeding installment payment date; To the extent not funded from the proceeds of bonds or covered by a Reserve Account Credk Facility Substitute, to the full extent necessary, for deposk into each of the Debt Service Reserve Accounts on the fifteenth (15th) day of each month in each year beginning with the fifteenth (15th) day of the first full calendar month following the date of issuance of any series of bonds, such sums as shall be sufficient to pay an amount equal to one-twelfth (1/12th) of twenty percent (20%) of the Debt Service Reserve Account Requirement applicable to each series of bonds; To the repayment of any obligations owed to the provider(s) of a Reserve Account Credit Facility Substitute (pro rata, if necessary) and then to the payment of any subordinated indebtedness issued by the City pursuant to the Bond Resolution; and The balance, if any, remaining in the Sinking Fund after malting the deposits described in chuses (a) through (e) above and after all deficiencies thereof have been remedied, maybe released bythe City from the lien of the Bond Resolution and used for any lawful municipal purpose. If the amount deposited in any month to the credit of any of the accounts mentioned in (a) through (d), inclusive, above shall be less than the amount required to be deposited therein under the Bond Resolution, the requirement therefor shall nevertheless be cumulative and the amount of any deficiency in any month shall be added to the amount otherwise required to be deposited in each month thereafter until such time as all such deficiencies have been made up. Any interest earned on the amounts held to the credit of the Principal Account, Bond Redemption Account and Debt Service Reserve Accounts shall be transferred to the credit of the Interest Account and credited against the amount required to be deposited therein as described in clause (a) above. 11 Notwithstanding the foregoing provisions of the Bond Resolution described in chuses (a) through (d) above, if there shall be to the credit of the Interest Account, Principal Account or Bond Redemption Account the amount required to be on deposk in such accounts on the next succeeding Interest Payment Date, principal payment date, or due date of any term bonds called for redemption, respectively, no further deposit to any such account, as the case may be, shall then be required on account of the requirements described in said clauses (a) through (c) above. Additional Bonds The City is authorized under the Bond Resolution to issue pari passu additional bonds, payable and secured equally and ratably with the Bonds, for any hwful purposes. Each such series of pari passu addkional bonds shall be on parity with and shall be entkled to the same benefits and security under the Bond Resolution as the Bonds (except as to any Debt Service Reserve Account established solely for any one or more series of Bonds); provided, however, that in addition to compliance with certain other conditions as set forth under the Bond Resolution, the following conditions are complied with: The City must be current in all deposits required to be made into the various funds and accounts established under the Bond Resolution and all payments required to have been theretofore deposked or made by the City under the provisions of the Bond Resolution and any supplemental resolution hereafter adopted for the issuance of addkional bonds. The City must also comply with the covenants and provisions of the Bond Resolution and any resolution supplemental thereto adopted for the purpose of the issuance of such additional bonds. The Utilities Tax proceeds collected by the City in any consecutive twelve (12) month period during the eighteen (18) month period immediately preceding the month in which the pari passu additional bonds are being issued, as certified by the City's Finance Director, shall be equal to at least one hundred twenty-five per centum (125%) of the Maximum Annual Debt Service Requirements on the bonds then outstanding, any pari passu additional bonds then outstanding and the pari passu addkional bonds then proposed to be issued. In the event any pari passu additional bonds are issued for the purpose of refunding the Bonds, or any other pari passu additional bonds then outstanding, the provisions of the Resolution described in the foregoing paragraph shall not apply, provided that the issuance of such pari passu additional bonds shall resuk in a reduction in, or shall not increase, the total annual debt service payments over the life of the series of Bonds being refunded. UTILITIES TAXES Section 166.231, Florida Statutes, as amended, authorizes any Florida municipality to levy a tax on the purchase within such municipality of electricity, metered natural gas, liquefied petroleum gas either metered or bottled, manufactured gas either metered or bottled and water service. Currently, the tax on the foregoing services may not exceed ten percent (10%) of the payments received by the sellers of such utilities service from purchasers, except in the case of fuel oil for which the maximum tax is four (4) cents per gallon. However, for municipalities levying less than 12 the maximum rate of ten percent (10%), the maximum tax on fuel oil shall bear the same proportion to four (4) cents per gallon which the tax rate actually levied for the utilities with a maximum rate of ten percent (10%) bears to ten percent (10%). Utilities taxes must be collected by the seller of the utilities service from purchasers at the time of sale and remitted to the taxing municipality as prescribed by ordinance of the municipality. The purchase of natural gas or fuel oil by a public or private utility for resale or for use as a fuel in the generation of electricity, or the purchase of fuel oil or kerosene for me as an aircraft engine fuel or propellant or for me in internal combustion engines is exempt from the levy of the utilities tax. A municipality may exempt from the utilities tax the purchase of metered or bottled gas (natural liquefied petroleum gas or manufactured) or fuel oil for agricultural purposes. A municipality may exempt from the utilities tax any amount up to the first 500 kilowatts hours of electricity purchased per month for residential use. A municipality may also exempt purchases by the United States Government, the State of Florida, or other public bodies from the levy of such tax as well as certain nonprofit corporations, cooperative associations and any recognized church in Florida, if used exclusively for church purposes. In addition, a municipality may exempt not less than fifty percent (50%) of the utilities tax imposed on purchasers of electrical energy for businesses located within an enterprise zone. All businesses located within an enterprise zone which have satisfied the requirements of Section 166.231(8), Florida Statutes prior to December 31, 2005 shall continue to be exempt from the utilities tax (subject to the limitations set forth therein) from and after that date. However, from and after January 2006, a municipality may not exempt any utilities tax imposed on purchasers of electrical energy for businesses located within an enterprise zone which have not satisfied the requirements of Section 166.231(8) prior to December 31, 2005. A municipality may exempt from the utilities tax any amount up to, and including, the total amount of electricity, metered natural gas, liquefied petroleum gas either metered or bottled, or manufactured gas ekher metered or bottled purchased per month, or reduce the rate of taxation on the purchase of such electricity or gas when purchased by an industrial consumer which uses the electricity or gas directly in industrial manufacturing, processing, compounding or a production process, at a fixed location in such municipality, of kems of tangible personal property for sale. As used in the Bond Resolution and herein, the term "Utilities Tax'" means the taxes imposed and levied by the City as authorized by Section 166.231, Florida Statutes. The City has covenanted in the Bond Resolution that it will take all action permitted by law to collect the Utilities Tax proceeds in the amount necessary to meet the requirements under the Bond Resolution. Chapter 50 of Title V entitled "Public Works" of the City's Code of Ordinances, as amended, contains the terms of the City's levy of its Utilities Tax (the "Utility Tax Ordinance"). The City currently levies the Utility Tax at the rate of 9.7% on sales of electricity and 8.7% on the sale of metered or bottled gas (natural liquefied petroleum gas or manufactured). The City also levies a tax on the sale of fuel oil. The Utility Tax Ordinance states that became the City imposes a tax which is less than the maximum rate of ten percent (10%) allowable by Florida Statute Section 166.231(1), the maximum tax on fuel oil shall bear the same proportion to $.04 per gallon which the tax rate of 8.7% levied as described above on the sale of metered or bottled gas bears to 10%. 13 Residential dwelling units are exempted from the electricity portion of the Utility Tax for the first ninety (90) kilowatt hours per month, then such residence will be subject to the tax on the sale of electricity. Also, the Utilities Tax is not charged with respect to any fuel adjustment charge on the bill. The purchase of natural gas or fuel oil by a public or private utility, either for resale or for use as fuel in the generation of electricity, or the purchase of fuel oil or kerosene for use as an aircraft engine fuel or propellant or for use in internal combustion engines is exempt from the City's Utilities Tax. Also exempted from the City's Utilities Tax are: Federal, the State of Florida and local governments and agencies thereof and any recognized church if used exclusively for church purposes. The City Commission is solely responsible for setting or revising the Utilities Tax it levies, which it accomplishes through amendments and supplements to the Utilities Tax Ordinance. The following table sets forth information about Utilities Tax proceeds collected by the City in each of the City's hst four (4) full fiscal years, and the anticipated Utilities Tax proceeds budgeted for fiscal year 2003 as compared with debt service requirements. This table does not include proceeds of the tax on telecommunications, the legal authority for which expired June 1, 2001, received in the years 1999-2001. Nor does the table include proceeds of the Communication Service Tax ("CST") enacted effective October 1, 2001, received in 2002, because such proceeds are not pledged to the Bonds. City of Delray Beach Utilities Tax Collections/Debt Service Coverage Year Ended September 30 1999 2000 2001 2002 2003 Actual Actual Actual Actual Budget Electric $3,776,866 $3,623,094 $3,659,792 $3,796,778 3,700,000 Gas & Fuel 113,674 125,919 148,405 144,234 144,000 Total $3.890.54~0 $3..749:013 $3.808.19_______~7 $3.941.01~2 $3.844.00~0 Debt Service (2) Annual 2,403,600 2,399,041 2,407,224 2,393,900 2,059,977 Ma.qm~um 2,407,224 2,407,224 2,407,224 2,401,171 2,300,000 Debt Service Coverage Annual 1.62 1.56 1.58 1.65 1.87 Maximum 1.62 1.56 1.58 1.64 1.67 0) (1) Source' Comprehensive Annual Financml Reports of the City for Fiscal Years 1999 through 2001; Unaudited financial report for Fiscal Year 2002; budget for Fiscal Year 2003. (1) Estimated Debt Service on the Bonds offered by this Official Statement. Until the Bonds are priced, these amounts are preliminary and sub)ect to change. (2) The debt service payments for the years 1999 through 2002 include interest on the Series 1996 Bonds and Series 1998 Bonds which have a lien upon the Utilities Tax subordinate to the lien in favor of the Series 1992 Bonds, the Series 1994 Bonds and the Series 1995 Bonds. 14 BOND INSURANCE Bond Insurance Policy Concurrently with the issuance of the Bonds, Financial Security Assurance Inc. ("Financial Security") will issue its Municipal Bond Insurance Policy for the Bonds (the "Policy"). The Policy guarantees the scheduled payment of principal of and interest on the Bonds when due as set forth in the form of the Policy included as in Appendix E to this Official Statement. The Policy is not covered by any insurance security or guaranty fund established under New York, California, Connecticut or Florida insurance law. Financial Security Assurance Inc. Financial Security is a New York domiciled insurance company and a wholly owned subsidiary of Financial Security Assurance Holdings Ltd. ("Holdings"). Holdings is an indirect subsidiary of Dexia, S.A., a publicly held Belgian corporation. Dexia, S.A., through its bank subsidiaries, is primarily engaged in the business of public finance in France, Belgium and other European countries. No shareholder of Holdings or Financial Security is liable for the obligations of Financial Security. At September 30, 2002 Financial Security's total policyholders' surplus and contingency reserves were approximately $1,728,433,000 and its total unearned premium reserve was approximately $972,390,000 in accordance with statutory accounting principles. At September 30, 2002, Financial Security's total shareholder's equity was approximately $1,928,564,000 and its total net unearned premium reserve was approximately $814,684,000 in accordance with generally accepted accounting principles. The financial statements included as exhibits to the annual and quarterly reports filed by Holdings with the Securities and Exchange Commission are hereby incorporated herein by reference. Also incorporated herein by reference are any such financial statements so filed from the date of this Official Statement until the terrninadon of the offering of the Bonds. Copies of materials incorporated by reference will be provided upon request to Financial Security Assurance Inc.: 350 Park Avenue, New York, New York 10022, Attention: Communications Department (telephone (212) 826-0100). The Policy does not protect investors against changes in market value of the Bonds, which market value may be impaired as a result of changes in prevailing interest rates, changes in applicable ratings or other causes. Financial Security makes no representation regarding the Bonds or the advisability of investing in the Bonds. Financial Security makes no representation regarding the Official Statement, nor has it participated in the preparation thereof, except that Financial Security has provided to the Issuer the information presented under this caption for inclusion in the Official Statement. THE CITY The City is a municipal corporation organized and existing under the laws of the State of Florida. The City, located on Florida's Gold Coast, is the third largest city in Palm Beach County 15 with a population of 61,527 (estimated as of 2002) and 14.9 square miles within its municipal boundaries, lying approximately eighteen miles south of West Palm Beach and approximately fifty miles north of Miami along the-Atlantic Ocean, the City has been able to participate in the growth of South Florida and benefit from the economic growth of this area in general. The City is governed by a City Commission and operates under a Commission Manager form of government. The City Commission appoints a full-time City Manager, and a full-time City Attorney. The City employs a full-time Director of Finance, who has the responsibility for all internal auditing and financial record keeping operations of the City. The Gty is primarily a resort and residential community of well-kept homes and recent developments of condominium apartments. The City has many recreational facilities including tennis, golf, boating, fishing, water sports, and lawn bowling. During the winter months, the hotels, motels, and restaurants and winter residents. The City's famous mile-long public beach is an attraction for residents and tourists. The Intracoastal Waterway provides boat dockage, and the Boynton inlet gives access to the Atlantic Ocean for sak water drift fishing Lake Ida, within the City, also provides fishing and water skiing. Further information on the City is contained in Appendix A - "General Information Concerning the City of Delray Beach and Palm Beach County". DEBT SERVICE REQUIREMENTS FOR THE BONDS Set forth below are the total debt service requirements for the Bonds. Bond Year Ending September 30 Principal Interest Debt Service Total $ $ RATINGS It is expected that Moody's Investors Service, Inc. ("Moody's") and Standard & Poor's, a division of McGraw-I-rail Companies ("S&P") will give the Bonds ratings of "Aaa" and "AAA", respectively, on the understanding that the standard policy of municipal bond insurance insuring the total payment of the principal of an interest on the Bonds will be issued by Financial Security upon the issuance of the Bonds. Moodys and S&P have assigned the Bonds underlying ratings of "A2" and "A', respectively. 16 Such ratings reflect the view only of the aforesaid credk rating organizations, and an exphnation of the significance of these ratings may be obtained only from such, rating organizations. There is no assurance that such ratings will continue for any given period of time, or that such ratings may not be lowered or withdrawn entirely by the respective rating agency if, in its judgment, circumstances so warrant. Any such downward change or withdrawal of either or both such ratings may have an adverse effect on the market price of the Bonds. LEGALITY Certain legal matters in connection with the issuance of the Bonds are subject to the approval of Greenberg Traurig, P.A., West Palm Beach, Florida, Bond Counsel, whose Bond Counsel opinion will be available at the time of delivery of the Bonds. The proposed form of such opinion of Bond counsel is attached to this Official Statement as Exhibk D certain legal matters will be passed upon for the City by its City Attorney, Susan A. Ruby, Esquire, and for the Underwriter by Blank Rome Cornisky & McCauley LLP, Boca Raton, Florida and Philadelphia, Pennsylvania. TAX EXEMPTION The Internal Revenue code of 1986 (the "Code") imposes certain requirements that must be met subsequent to the issuance and delivery of the Bonds for interest thereon to be and remain excluded from gross income for federal income tax purposes. Noncompliance with such requirements could cause the interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issue of the Bonds. The City has covenanted in the Bond Resolution to comply with each requirement of the Code necessary to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes pursuant to Section 103(a) of the Code. In the opinion of Bond Counsel, under existing hw, and assuming continuing compliance with the aforementioned covenant, interest on the Bonds is excluded from gross income for federal income tax purposes. Bond Counsel is also of the opinion that the Bonds are not "specified private activity bonds~ within the meaning of Section 57(a)(5) of the Code and, therefore, interest on the Bonds will not be treated as a preference item for purposes of computing the alternative minimum tax imposed by Section 55 of the Code. Interest on the Bonds owned by corporations will, however, be taken into account in determining the akemative minimum tax imposed by Section 55 of the Code on seventy-five percent (75%) of the excess of adjusted current eamings, over akemative minimum taxable income (determined without regard to this adjustment and the altemative tax net operating loss deduction). Bond Counsel is also of the opinion that the Bonds and interest thereon are exempt from taxation under the existing laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income and profits on debt obligations owned by corporations, banks and savings associations. Bond Counsel is further of the opinion that the difference between the principal amount of the Bonds maturing on through ., and on , (the "Discount Bonds") and the initial offering price to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters or wholesalers) at which price a substantial amount of such Discount Bonds of the same maturity was sold constitutes 17 original issue discount which is excluded from gross income for federal income tax purposes to the same extent as interest on the Bonds. Further, such original issue discount accrues actuarially on a constant interest rate basis over the term of each Discount Bond and the basis of each Discount Bond acquired at such initial offering price by an initial purchaser thereof will be increased by the amount of such accrued original issue discount. The accrual of original issue discount may be taken into account as an increase in the amount of tax-exempt income for purposes of determining various other tax consequences of owning the Discount Bonds, even though there will not be a corresponding cash payment. Owners of the Discount Bonds are advised that they should comult with their own advisors with respect to the state and local tax consequences of owning such Discount Bonds. Bond Counsel has not undertaken to advise in the future whether any events after the date of issuance of the Bonds may affect the tax status of interest on the Bonds. No assurance can be given that future legislation, or amendments to the Code, if enacted into law, will not contain provisions which could directly or indirectly reduce the benefit of the exclusion of the interest on the Bonds from gross income for federal income tax purposes. Furthermore, Bond Counsel expresses no opinion as to any federal, State or local tax law consequences with respect to the Bonds, or the interest thereon, if any action is taken with respect to the Bonds or the proceeds thereof upon the advice or approval of bond counsel other than Bond Counsel. Although Bond Counsel has rendered an opinion that interest on the Bonds is excluded from gross income for federal income tax purposes, a Bondholder's federal, State or local tax liability may otherwise be affected by the ownership or disposition of the Bonds. The nature and extent of these other tax consequences will depend upon the Bondholder's other items of income or deduction. Without limiting the generality of the foregoing, prospective purchasers of the Bonds should be aware that (i) Section 265 of the Code denies a deduction for interest on indebtedness incurred or continued to purchase or carry the Bonds or, in the case of a financial institution, that portion of a holder's interest expense allocated to interest on the Bonds; (h) with respect to insurance companies subject to the tax imposed by Section 831 of the Code, Section 832(b)(5)(B)(O reduces the deduction for loss reserves by 15 percent (15%) of the sum of certain items; including interest on the Bonds, (ih) interest on the Bonds earned by certain foreign corporations doing business in the United States could be subject to a branch profits tax imposed by Section 884 of the Code, (iv) passive investment income, including interest on the Bonds, may be subject to federal income taxation under Section 1375 of the Code for Subchapter S corporations that have Subchapter C earnings and profits at the close of the taxable year if greater than twenty-five percent (25%) of the gross receipts of such Subchapter S corporation is passive investment income, and (v) Section 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take into account, in determining the taxability of such benefits, receipts or accruals of interest on the Bonds. Bond Counsel has expressed no opinion regarding any such other tax consequences. UNDERWRITING The Bonds are being purchased by the Underwriter pursuant to a purchase contract between the City and the Underwriter as shown on the cover page hereof, from the City at an aggregate 18 purchase price of $ (the face amount of the Bonds less underwriter's discount and original issue discount) plus accrued interest on Bonds. The Bonds may be offered and sold to certain dealers (including underwriters and other dealers depositing such Bonds into investment trusts) and others at prices lower than the public offering prices set forth on the cover page of this Official Statement. CONTINUING DISCLOSURE UNDERTAKING In accordance with the continuing disclosure requirements of Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission (the "SEC"), the City has agreed pursuant to the terms of the Bond Resolution as follows: (a) The City undertakes and agrees to provide to each nationally recognized municipal securities information reposkory (each a "NtLMSIW') and to the State of Florida information deposkory (the "SID') if and when such a SID is created (i) the City's general purpose financial statements generally consistent with the financial statements presented in Appendix B to this Official Statement, and (h) the information concerning the Utilities Tax collections within the City with respect to electricity, gas and fuel oil, the Utilities Tax rate or rates, exemptions from the Utilities Tax and amendments to the Utilities Tax Ordinance generally consistent with the information described herein under the heading "Utilities Tax". The information referred to in clauses (~ and (ii) is herein collectively referred to as the "Annual Information." (b) The Annual Information described in clause (~ of paragraph (a) above in audited form (for as long as the City provides such financial information in audited form) is expected to be available on or before March 31 of each year for the fiscal year ending on the preceding September 30, commencing March 31, 2003 for the fiscal year ending on the preceding September 30, 2002. The Annual Information referred to in clause (i) of paragraph (a) above in unaudited form (if the audited financial statements are not available or if the City no longer provides such financial information in audited form) will be available on or before March 31 for the fiscal year ending on the preceding September 30. The City also agrees to provide the Annual Information to each registered owner and Beneficial Owner of the Bonds who request such information and pays to the City its costs of reproduction and transmission of such Annual Information. The City agrees to provide to each NRMSIR and the SID, if any, timely notice of its failure to provide the Annual Information. Such notice shall also indicate the reason for such failure and when the City reasonably expects such Annual Information will be available. (c) The Annual Information referred to in clause (~ of paragraph (a) above and presented in Appendix B to this Official Statement has been prepared in accordance with governmental accounting standards promulgated by the Government Accounting Standards Board, as in effect from time to time, as such principles are modified by generally accepted accounting principles, promulgated bythe Financial Accounting Standards Board, as in effect from time to time, and such other State of Florida mandated accounting principles as in effect from time to time. (d) If, as authorized by paragraph (f) below, the City's undertaking with respect to paragraph (c) above requires amending, the City undertakes and agrees that the Annual Information described in clause (i) of paragraph (a) above for the fiscal year in which the amendment is made will, to the extent possible, present a comparison between the Annual Information prepared on the 19 basis of the new accounting principles and the Annual Information prepared on the basis of the accounting principles described in paragraph (c) above. The City agrees that such a comparison will, to the extent possible, include a qualitative discussion of the differences in the accounting principles and the impact of the change on the presentation of the Annual Information. (e) The City undertakes and agrees to provide in a timely manner, to each NRMSIR or to the Municipal Securities Rulemaking Board and to the SID, if any, notice of the occurrence of any of the following events with respect to the Bonds, if material: Principal and interest payment delinquencies; (ii) Non-payment related defaults; (ill) Unscheduled draws on any reserve account reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers; or their failure to perform; Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (vh) Modifications to rights of Bondholders; (viii) Bond calls (other than scheduled mandatory sinking fund redemptions); (ix) Defeasances of the Bonds; Release, substitution, or sale of property securing repayment of the Bonds; and Rating changes. Notwithstanding the foregoing, notice of the events described in chuses (8) and (9) above need not be given any earlier than the time notice is required to be given to the registered owners of the Bonds. (f) Notwithstanding any provision of the Bond Resolution to the contrary regarding amendments or supplements, the City undertakes and agrees to amend and/or supplement the City's undertaking (including the amendments referred to in paragraph (d) above) only if: The amendment or supplement is made only in connection with a change in circumstances existing at the time the Bonds were originally issued that arises from (i) a change in law, (h) SEC pronouncements or interpretations, (ih) a judicial decision affecting 2O the Rule or (iv) a change in the nature of the City's operations or the activities that generate the Utilities Tax; The City's undertaking, as amended, would have complied with the requirements of the Rule at the time the Bonds were originally issued after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and The amendment or supplement does not materially impair the interest of the registered owners and Beneficial Owners of the Bonds as determined by Bond Counsel or by a majority of the registered owners of the Bonds. In the event of an amendment or supplement under the City's undertaking, the City shall describe the same in the next report of Annual Information and shall include, as applicable, a narrative explanation of the reason for the amendment or supplement and its impact, if any, on the financial information and operating data being presented in the Annual Information. (g) The City's undertaking as set forth in the Bond Resolution and described herein shall terminate if and when the Bonds are paid or deemed paid within the meaning of the Bond Resolution. (h) The City acknowledges that its undertaking pursuant to the Rule set forth in the Bond Resolution and described herein is intended to be for the benefit of the registered holders and Beneficial Owners of the Bonds and shall be enforceable by such holders and Beneficial Owners; provided that, the holder's and Beneficial Owners' right to enforce the provisions of the City's undertaking shall be limited to a right to obtain specific enforcement of the City's obligations under the Bond Resolution and described herein, and any failure by the City to comply with the provisions of its undertaking shall not be or constitute a covenant or monetary default with respect to the Bonds under the Bond Resolution. (i) The City reserves the right to satisfy its undertaking under the Bond Resolution through agents; and the City may appoint such agents without the necessity of amending the Bond Resolution. The City may also appoint one or more employees of the City to monitor and be responsible for the City's undertaking under the Bond Resolution. (j) "Beneficial Owner" shall mean, for purposes of the City's undertaking, any person which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (h) is treated as the owner of anyBonds for federal income tax purposes. The City has not failed to comply with any previous undertaking in a written contract or agreement to provide continuing disclosure pursuant to the Rule. ENFORCEABILITY OF REMEDIES The remedies available to the owners of the Bonds under the Bond Resolution and any policy of municipal bond insurance referred to herein are in many respects depended upon judicial 21 actions which are often subject to discretion and' dehy. Under existing constitutional and statutory law and judicial decisions, including specifically Title 11 of the United States Code, the remedies specified by the Federal Bankruptcy Code, the Bond Resolution and any policy of municipal bond insurance referred to herein may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel's approving opinion) will be qualified as to the enforceability of the various legal instruments, by limitations imposed by bankruptcy, reorganization, insolvency, or other similar laws affecting the rights of creditors or by such principles of equity as the court having jurisdiction may impose with respect to certain remedies which require or may require enforcement by a court of equity. LITIGATION There is no litigation or controversy of any nature now pending or threatened (~ to restrain or enjoin the issuance, sale, execution or delivery of the Bonds or (h) in any way questioning or affecting the validity of the Bonds, the Bond Resolution, any proceedings of the city taken with respect to the authorization, sale or issuance of the Bonds or the pledge or application of any moneys provided for the payment of the Bonds. The City is a party from time to time in various law suits incident to its operations. In the opinion of Susan A. Ruby, Esquire, City Attomey, there are no pending legal proceedings to which the City is a party, the ultimate disposition of which would have a material adverse effect on the finances or operations of the City or its ability to meet ks obligations with respect to the Bonds. GENERAL PURPOSE FINANCIAL STATEMENTS The General Purpose Financial Statements and other information of the City for the fiscal year ended September 30, 2001 are included in Appendix B to this Official Statement. Such excerpts from the City's Comprehensive Annual Financial Report, including the auditor's report thereon, have been included in this Official Statement as public documents and consent from the audkors was not requested. The audkors have not performed any services relating to, and are therefore not associated with, the issuance of the Bonds. FINANCIAL ADVISOR The City has retained Public Financial Management, Inc., Orlando, Florida, as financial advisor (the "Financial Advisor") to the City in connection with the preparation of the City's plan of financing and with respect to the authorization and issuance of the Bonds. Although the Financial Advisor assisted in the preparation of this Official Statement, the Financial Advisor has not undertaken to make an independent verification or to assume responsibility for the accuracy, completeness or faimess of the information contained in this Official Statement. Public Financial Management, Inc. is a financial advisory consulting organization and is not engaged in the business of underwriting, marketing or trading of municipal securities or any other negotiable instruments. VERIFICATION OF MATHEMATICAL COMPUTATIONS The accuracy of (1) the mathematical computations of the adequacy of maturing principal of and interest earned on the Government Obligations to be held under the Escrow Deposit Agreement for the Series 1992 Bonds, Series 1994 Bonds and the Series 1995 Bonds to pay, when 22 due or redeemed the principal of, premium, if any, and interest on the Series 1992 Bonds, Seres 1994 Bonds and the Series 1995 Bonds, and (2) the mathematical computations supporting the conclusion that the Bonds are not "arbkrage bonds" under Section 148 of the Code will be verified for the City by Causey Demgen & Moore, Inc., independent certified public accountants. Such verification of mathematical computations will be based upon information supplied by the City and the Underwriter and on interpretation of Section 148 of the Code provided byBond Counsel. MISCELLANEOUS All information included herein has been provided by the City, except where attributed to other sources. The summaries of and references to all documents, statutes, reports and other instruments referred to herein do not purport to be complete, comprehensive or definitive, and each such reference or summary is qualified in its entirety by reference to each such document, statute, report or other instrument. Copies of all such documents referred to herein are on file with the City Clerk of the City at 100 N.W. First Avenue, Delray Beach, Florida 33444. The information herein has been compiled from official and other sources and, while not guaranteed by the City, is believed to be correct. As far as any statements made in this Official Statement and the appendices attached hereto involve matters of opinion or of estimates, whether or not expressly stated, they are set forth as such and not as representatives of fact and no representation is made that any of the estimates will be realized. AUTHORIZATION OF AND CERTIFICATION CONCERNING OFFICIAL STATEMENT The delivery of this Official Statement has been authorized by the City Commission. Concurrently with the delivery of the Bonds, the undersigned will furnish their certificate to the effect that, to the best of their knowledge, this Official Statement other than information provided by DTC and the Bond Insurer, did not as of its date, and does not as of the date of delivery of the Bonds, contain any untrue statement of a material fact or omit to state a material fact which should be included therein for the purpose for which this Official Statement is to be used, or which is necessary in order to make the statements contained therein, in the light of the circumstances in which they were made, not misleading. CITY OF DELRAY BEACH, FLORIDA By:. Mayor City Manager 23 APPENDIX A General Information Concerning the City of Dell'ay Beach and Palm Beach County GENERAL INFORMATION CONCERNING THE CITY OF DELRAY BEACH AND PALM BEACH COUNTY The following information concerning City of Dekay Beach, Florida (the "City"), Palm Beach County, Florida (the "County"), and the State of Florida is included only for the purposes of providing general background mformauon. The information has been compiled by the City and on behalf of the City, and such compflauon ~nvolved oral and written communtcatton with various sources as indicated. The information in th~s Appendix A is sublect to change. CITY OF DELRAY BEACH Introduction The C~ty, approximately 16 square miles in area, is located in the southeast portion of the State of Florida, in the southeast section of the County. Incorporated m 1911, the City has an esttrnated population of 61,527 (2002) and an estmaated seasonal population of 10,694 (2000) based on projections by the C~ty's Planmng and Zomng Department. Climate The climate of the City ts best described as subtroptcal manne. The average year-round temperature is 74.1 degrees wxth the mean winter temperature at 65.9 degrees and the summer mean temperature at 82.3 degrees. Rainfall occurs year-round, but ts heavtest m the summer; the average annual rainfall ts 64.26 roches. The mild chrnate ~s pranarfly a result of the proxmuty to the Gulf Stream and the prevathng ocean breezes. City Government The City Comwnss~on of the Ctty (the "Commisston") ~s the principal legislative and govermng body of the Cl~;. The Comrmsston's mailing address is 100 N.W. First Avenue, Delray Beach, Florida 33444. The C~ty operates under a commission-manager form of government. The Mayor, elected evexy txvo years, presides over a board of four commisston members who are elected to txvo-year altcrnanng terms by the commumty at large. The City Commission appoints the City Manager, City Attorney and certain, general advisory boards. Malor departments of the C~ty include: Parks and Recreation, Pubhc Utilines, Englneenng, Pubhc Works, C~ty Clerk, Finance, Commumty Improvement, Human Resources, Pohcc, F~re and Planmng & Zomng. The City Manager The chief adtmmstrative offictal of the City 1S the City Manager. Thts officml is directly responsible to the Comrmss~on for adrmmstration and operation of varmus divisions under the Commission and for execuuon of all Comtmssion pohc~es. Thc Ci~r Manager is also responsible to the Commisston for preparation of the Cttv's budget and for control of expenditures throughout the budget year. A-1 0[7005 ~)0 ~13/2B~77928x 2 Education The Cxty is served by four elementary schools, one rmddle school, and one high school, all operated by the Palm Beach County School Board. Higher education is available at Palm Beach Community College (11 miles to the north), Florida Atlanuc University (11 nules to the south), and South County Technical Center Oust north of the City). Florida Atlanuc University is a four year and graduate universxty, accepnng jumor college transfers for then: last two years. It has six colleges: Business and Pubhc Administration, EducaUon, Engineering, Humanities, Natural Science and Social Science. Masters degrees are offered in all fields. The Palm Beach County School Board operates 74 elementary schools, 20 huddle schools, 16 senior high schools and 10 special schools. Transportation Lying along Florida's Gold Coast between Miami and West Palm Beach, the City has benefited greatly from well-developed transportauon systems servicing all of Florida's southeast coast. There are mght north-south highxvays which run through Palm Beach County, including U.S. Highway 1, Congress Avenue, State Road A1A, the Florida Turnpike and Interstate 95. U.S. Highway 1 and Congress Avenue are the main arteries through the C~ty runmng north and south. The Florida Turnpike and Interstate 95 have entrance access at Delray Beach. There are also two railroads, Florida East Coast Railway and Seaboard Coast Line, and four east-west highways to accommodate surface transportauon in Palm Beach County. Bus transportauon is also available in the City through the County operated bus system. The Port of Palm Beach, located within 30 rmles of the City, operates s?np terminal facihties on approximately 90 acres of land located in Primera Be. :h, Florida and fronting on Lake Worth, Florida. A 35-foot deep channel to the Lake Worth Inlet pr..vldes access to the port facRifies. Port Everglades, xmthm 50 nules of the C~ty is a major port for cruise and cargo transportation. Commercial an: service is provided at Palm Beach Intemauonal An'port ("PBIA") by major am carriers and commuter airlines. PBIA is fifteen mdes to the north of the C~ty. The volume of passenger traffic at PBIA increased from 5,842,594 in 2000 to 5,934,904 m 2001. PBIA also serves general avlauon traffic, and there are five general aviauon au'ports m the County. The Fort Lauderdale-Hollyxvood International An'port and the Mlarm Internauonal Airport are within 50 miles to the South of the City. The City is served by Greyhound Bus L~nes xvh~ch provides transportauon to most malor Florida c~ties. Amtrak provides passenger raft accommodauons and has a stauon stop located in the City. The City ~s also served by the Tri-County Rail System ("Tn-Rail"). Tri-Rail, is a highspeed commuter rail line which operates regularly scheduled service between M~ami and West Palm Beach. Tn-Rail has a stauon stop located m the C~ty. CITY OF DELRAY BEACH POPULATION ESTIMATES The following table shows the City population and the annual average percentage changes from 1980 to 1990 and from year to year from 1990 through 2002. Year City Annual Population Percentage Change 1980 34,329 1990 47,181 37.4% 1991 48,206 2.2 1992 48,346 0.3 1993 48,644 0.6 1994 49,298 1.3 1995 50,195 1.8 1996 52,039 3.7 1997 52,920 1.7 1998 53,471 1.0 1999 53,589 0.2 2000 60,020 12.0 2001 60,645 1.0 2002 61,527 1.5 Sources U S Bureau of the Census as of April I, for the )'ears 1980 and 1990 through 2000, Umvers~ty of Florida, Bureau of Econo,mc Bus~ness Research for the years 2001 and 2002, C~tv Plamung and Zomng Department for C~ty populanon esnmates for all other years. A-3 CITY OF DELRAY BEACH BUILDING PERMIT ACTIVITY The number of building permits issued for industrial, commercial and residential construcuon within the City from 1991 through 2002 and the value of such construction is shown below: Industrial and Commercial Construction Residential Construction Fiscal Year Ended Number of September30 Number of Permits Value Units Value 1991 27 $11,767,551 203 $21,348,434 1992 13 8,405,390 403 32,160,179 1993 18 8,193,527 172 20,894,643 1994 8 3,224,875 364 39,818,084 1995 16 5,006,576 242 27,963,390 1996 31 17,796,738 800 52,207,344 1997 34 6,852,230 489 58,382,613 1998 24 9,343,455 291 39,461,414 1999 26 7,850,092 350 39,407,811 2000 42 16,897,724 343 39,410,536 2001 55 27,106,834 536 55,920,946 2002 36 19,886,320 599 59,890,130 Source C~ty of Delray Beach Comprehensive Annual Financial Report for the year ended September 2001 for years 1991 through 2001, Commumty Improvement Department esumates fo.' 2002 [REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY] A-4 PALM BEACH COUNTY, FLORIDA General Introduction Palm Beach County, Florida was founded in 1909 and encompasses an area of 2,023 square miles. It is located on the south lower east coast of the Florida peninsula, with 46 miles of Atlantic Ocean frontage and 25 males of frontage on Lake Okeechobee. The County has a semi-tropical climate with an average temperature of 74.5F degrees and an average rainfall of 60.77 inches. These and other natural amenities, including 88 local, State and Federal recreanonal areas of more than 10 acres and 163 golf courses, have enabled the County' to develop a year-around tourist industry. There are 38 incorporated municipahnes within the County, nine of which have a population in excess of 25,000. West Palm Beach is the County, seat and is the largest city' m the County, with a 2001 U.S. Census population of 1,154,464. POPULATION GROWTH Population In 2001, Palm Beach County was the third largest county m the State of Florida in terms of population. Its populauon increased 65.3% in the 1970-1980 decade, 49.7% m the 1980-1990 decade and 23.1% in the 1990-2000 decade. Palm Beach County Florida United States Year Populauons Change Populauon Change Population Change 1994 937,190 2.1% 13,878,905 2.0% 259,718,000 1.0% 1995 962,802 2.7 14,149,317 1.9 262,176,000 .9 1996 981,793 2.0 14,411,563 1.9 266,538,000 1.7 1997 1,003,798 2.2 14,712,365 2.1 267,636,000 .4 1998 1,020,521 1.7 15,475,000 5.2 270,733,000 1.2 1999 1,042,196 2.1 15,322,000 (1.0) 272,190,000 .5 2000(~) 1,131,184 8.5 15,982,378 4.3 275,860,949 1.3 2001 1,154,464 2.1 16,331,739 2.2 285,371,621 3.4 Due to the census, there was an adjustment for the popuhmon of Pahn Beach County. Source- Umvers~ty of Florida, Bureau of Ecouom~c and Business Research and the U S Bureau of Census. Palm Beach CounU~ and Florida data ~s as of April I Umted States data 1s as of October 1. A-5 Age Distribution The age chstribution ~n the County ~s similar to that of Florida, but chffers significantly with that of the nanon. Both the County and Florida have a considerably larger proportion of persons 65 years and olden than the rest of the nanon. PALM BEACH COUNTY POPULATION DISTRIBUTION BY AGE GROUP°) Age Group 2000 1999 1998 1997 1996 1995 1994 0-14 18% 18% 18% 18% 18% 18% 18% 15-64 59 59 58 58 58 58 58 65+ 23 23 24 24 24 24 24 (t) Totals may not add to 100% because of rounding Source: Unlverstty of Flonda, Bureau of Economic and Business Research and the U S Bureau of Census Income The folloxv~ng table shows the per capita personal ~ncome reported for Palm Beach County, the State of Florida and the Uruted States. PER CAPITA PERSONAL INCOME Palm Beach County Florida U.S. Year Dollars % of Fla. % of U S Dollars % of U S Dollars 1992 $31,028 156.7% 154.3% $19,797 98.5% $20,105 1993 32,230 156.1 155.0 20,650 99.3 20,800 1994 33,862 155.5 153.6 21,777 98.8 22,044 1995 36,213 156.5 155.0 23,139 99.1 23,359 1996 38,081 157.4 155.8 24,198 99 0 24,436 1997 38,772 156.3 153.3 24,799 98.1 25,288 1998 40,044 149.2 147.2 26,845 98.7 27,203 1999 41,907 150.8 146.8 27,781 97.3 28,546 Source' Umversm,- of Florida, Bureau of Economic and Business Research Note Data for 2000 and 2001 ~s not avadable A-6 Employment Tourism and agriculture, together with the service industries related to these actsvities, are the leading sources of income for the County's residents. Manufacturing, primarily electronics and other high technology products, also play an important role in the County's economy. The table that follows shows the County's estimated average annual non-farm employment by economic sector. PALM BEACH COUNTY ESTIMATED AVERAGE ANNUAL NON-AGRICULTURAL EMPLOYMENT BY ECONOMIC SECTOR 2000 1999 1998 1997 1996 AH Indusmes 424,501 406,123 396,371 378,679 367,398 Agriculture Forestry and Fisheries 17,328 18,070 18,590 18,308 17,850 Mining 18 13 14 23 24 Construcuon 30,415 27,054 26,157 24,789 24,068 Manu~ctunng 30,715 32,542 30,638 29,926 28,980 Transportation Cornmumcauons and PubhcUtiliues 16,481 15,916 15,692 15,184 15,316 Wholesale Trade 23,044 21,920 21,821 20,375 19,132 Reta~ Trade 94,608 92,027 92,112 89,028 88,086 Finance Insurance and Real Estate 33,333 32,312 32,050 29,296 27,830 Services 176,641 164,098 156,819 149,769 143,853 Other 1,918 2,171 2,478 1,982 2,259 Source' UmversnT of Florida, Bureau of Economtc and Bustness Research, based upon data from U S Bureau of the Census, 1998-2001 Florida Stansncal Abstracts A-7 The data on County unemployment m the following table represents annual averages. PALM BEACH COUNTY ANNUAL AVERAGE LABOR FORCE AND UNEMPLOYMENT ESTIMATES Unemployment Rates Civilian Palm Beach United Year Labor Force County Florida States 1995 454,852 6.2% 5.4% 5.6% 1996 461,526 7.0 5.2 5.4 1997 482,486 6.3 4.8 4.9 1998 507,754 5.5 4.3 4.5 1999 543,006 4.8 4.0 3.8 2000 524,708 4.1 3.6 3.8 2001 541,377 5.9 4.5 4.7 Source Florida Department of Labor and Employment Security, Bureau of Labor Market Unemployment Informauon; Labor Stausucs Department Largest Employers The folloxvmg table shoxvs employment at the ten largest private employers in the County. Employees Apphed Cards (F~nancml - Cre&t Cards) Florida Poxver & L~ght Company (Utihfies) Boca Raton Resort & Club (Hotel) Office Depot (Retad - Office Supphes) The Breakers (Hotel) Siemens Companies (PBX Systems) Palm Beach Nexvspapers, Inc. (Nexvspaper Pubhshing) Pratt & Whitney Arrcraft (Jet Engines) Motorola Inc. (Electromc Pagers) Bell South (Utihues) 2,500 2,300 1,850 1,500 1,500 1,500 1,300 1,300 1,300 1,200 Source' Bustness Development Board of Palm Beach CountT A-8 Tourism Visitors to the Palm Beaches have a significant econormc impact on the County. According to the Florida Department of Business Regulation, there were 231 licensed hotels and motels in the County, having a total of over 15,000 rooms. The Tourism Development Council of Palm Beach County estimates that over three (3) million people visit the County annually and spend approxamately $1.1 bflhon. Agriculture Agriculture, together with the related service ~ndustries, is the leading source of income for the County's residents. The "Glades" region of the County is one of the nauon's most productive agricultural areas. Palm Beach County is the largest agricultural county m Florida and the fourth largest m the United States, with annual sales m excess of $2 billion. Banking The total deposits of banking instituuons m the County as of September 30 of each of the years indicated below were as follows: Total Bank Deposits (in thousands) Fiscal Year Commercial Banks Federal Savings and Loan Assocmtions 1994 $8,601,035 $7,805,278 1995 9,055,476 7,606,601 1996 9,545,424 6,578,158 1997 9,911,930 5,941,909 1998 10,715,881 6,949,839 1999~) 13,283,898 7,243,923 2000 12,843,897 7,646,519 2001 13,841,347 8,571,953 (t) FDIC Webs~te Florida League of Ftnancml Insntunons data was not available for 1999 Source Florida League of Fmanoal Insutunons. A-9 Construction Building permit activity in the County has been reported as follows: BUILDING PERMIT ACTIVITY COUNTY OF PALM BEACH, FLORIDA (DOLLARS IN THOUSANDS) 1996 - 2001 Value of Building Permits Issued Fxscal Resxdenfial Commercial Tot~ Permit Year Units Value Value Other0) Valuation 1996 9,311 $ 932,675 $143,940 323,503 1,400,118 1997 6,060 979,247 188,227 451,299 1,618,773 1998 10,677 1,159,302 227,318 752,374 2,138,994 1999 10,242 1,217,582 394,868 776,015 2,388,465 2000 10,026 1,507,878 360,271 918,780 2,786,929 2001 10,091 1,377,870 484,771 798,827 2,661,467 (t) Hotels, motels, mobile home parks, and miscellaneous Source The Palm Beach County Department ofPlanmng, Zomng and Braiding. Retail Sales Total retail sales in the County for the last seven calendar years have been as follows for the years inchcated: Retail Sales Year 1994 1995 1996 1997 1998 1999 2000 Retail Sales $21,680,285,125 23,746,717,448 24,818,102,000 27,600,033,550 27,828,417,249 30,213~35,156 34,393,336,408 Source State of Flonda, Departtnent of Revenue A-10 APPENDIX B General Purpose Financial Statements of the City of Delray Beach APPENDIX C Summary of Certain Provisiom of the Bond Resolution APPENDIX D Form of Bond Coumel Opinion APPENDIX E Specimen Municipal Bond Insurance Policy l~/aa/u~ li:~z '~'4u/ 0~5 l~zJ FU~LIC FINANCIAL ~002/003 Public Financial Management Financial ~nd Investment Advisors Suite 720 201 So~th Orange Avenue Orlando, FL 32801.3470 4O7 648-2208 407-648-1323 fax Exhibit D December 3, 2002 The City Commission of The City of Delray Beach, Florida 100 N.W. 1" Avenue Dekay Beach, Florida 33444 Dear Ladies and Gentleman: In serving in our capacity as Financial Advisor to the City of Delray Beach, Florida on the City's Utilities Tax Revenue Refunding Bonds, Series 2002, Public Financial Management, Inc. is zecommending the use of the negotiated sale process as opposed to the competitive sale format. We believe that given the current volatility of the tax-exempt mumcipal market, the negotiated sale process is most beneficial to the City. Additionally, we are of the opinion that the use of bond insurance to insure the principal and interest payments on the Bonds and a surety bond in lieu of the debt service reserve fund provides economic benefit to the City, and are therefore recommending its use. Sincerely, Public Financial Management, Inc.. Senior Managing Consultant Exhibit E November 25, 2002 VIA FEDEX Mr. Joe Safford, Finance Director City of Delray Beach 100 NW First Avenue Delray Beach, Florida 33444 Re: Not to Exceed $15,505,000 aggregate principal amount of City of Delray Beach, Flonda Utilities Tax Refunding Revenue Bonds, Series 2002 Dear Mr. Safford: Please find attached two originals each of our commitment letter and debt service reserve commitment letter in respect of the above-referenced issue. Please return one fully executed copy of each to Ms. Lillie Santana of our office, prior to any reference to Financial Security as insurer of the issue being made in marketing efforts in respect of the issue. Please note that a blacklined copy of each draft of each financing document and opinion, each draft of the preliminary and final official statements and the bond proof should be delivered to us via e-mail, if possible, for review and comment. Please note that Financial Security's website may be accessed at www.fsa.com/products/municipaledoc.php. The logo, statement of insurance, disclosure language, specimen policy, procedures for premium payment, form of opinion and form of disclosure, no default and tax certificate may be accessed and downloaded as needed. Financial Security will require, prior to closing, six hard copies of the final official statement. We will deliver to Bond Counsel, at the preliminary closing, assuming the requirements of the commitment letter have been met, an opinion of counsel as to the enforceability of the policy, a disclosure, no default and tax certificate of Financial Security and the executed policy. Prior to the closing, Financial Security will obtain rating letters from the rating agencies indicated in the official statement. Note that any questions with regard to rating agency fees should be directed to the respective rating agency. Please ensure the following people are added to the Distribution List for this Financing: Francis J. Coughlin, Jr., Associate General Counsel Juliet Kong, Analyst Lillie Santana, Assistant Vice President Documentation and Closing Supervisor Telephone: Telecopier: E-Maih Telephone: Telecopier: E-Maih Telephone: Telecopier: E-Maih (212) 339-3411 (212) 339-3529 FCoughlin@FSA.com (212) 893-9659 (212) 339-3450 JKong@FSA.com (212) 339-3537 (212) 339-0872 or (212) 339-3588 LSantana@FSA.com Financial Security requires one original and two copies of the final closing transcript of proceedings and it may be in the form of either hard copies or three CD-ROMs. Yours truly, CC' Francis J. Coughlin, Jr. Associate General Counsel Stephen D. Sanford, Esq.; Greenberg Traung, LLP Mr. J.W. Howard, Managing Underwriter; Bear Stearns & Co., Inc. Jeffrey Blumenfeld, Esq.; Blank Rome Comisky & McCauley LLP Mr. Jay Glover; Public Financial Management, Inc MUNICIPAL BOND INSURANCE COMMITMENT FINANCIAL SECURITY ASSURANCE INC. ("Financial Security" or "FSA") hereby commits to issue its Municipal Bond Insurance Policy (the "Policy") relating to whole maturities of the debt obligations described in Exhibit A attached hereto (the "Bonds"), subject to the terms and conditions set forth in this Commitment, of which Commitment Exhibit A is an integrated part, or added hereto (the "Commitment"). To keep this Commitment m effect after the Expiration Date set forth in Exhibit A attached hereto, a request for renewal must be submitted to Financial Security prior to such Expiration Date. Financial Security reserves the right to refuse wholly or in part to grant a renewal. THE MUNICIPAL BOND INSURANCE POLICY SHALL BE ISSUED IF THE FOLLOWING CONDITIONS ARE SATISFIED: 1. The documents to be executed and delivered in connection with the issuance and sale of the Bonds shall not contain any untrue or misleading statement of a material fact and shall not fail to state a material fact necessary in order to make the information contained therein not misleading. 2. No event shall occur which would permit any underwriter or purchaser of the Bonds, otherwise required, not to be required to underwrite or pumhase the Bonds on the date scheduled for the issuance and delivery thereof ("Closing Date"). 3. There shall be no material change in or affecting the Bonds (including, without limitation, the security for the Bonds) or the financing documents or the Official Statement (or any similar disclosure documents) to be executed and dehvered in connection with the issuance and sale of the Bonds from the descriptions or forms thereof approved by Financial Security. 4. The Bonds shall contain no reference to F~nancial Security, the Policy or the insurance ewdenced thereby except as may be approved by Financial Security. BOND PROOFS SHALL HAVE BEEN APPROVED BY FINANCIAL SECURITY PRIOR TO PRINTING. The Bonds shall bear a Statement of Insurance in the form prowded by Financial Security 5. Financial Security shall be provided with: (a) Executed copies of all financing documents, any disclosure document (the "Official Statement") and the vadous legal opinions delivered in connection with the issuance and sale of the Bonds (which shall be dated the Closing Date and which, except for the opinions of counsel relating to the adequacy of disclosure, shall be addressed to F~nancial Security or accompanied by a letter of such counsel permitting Financial Security to rely on such opinion as if such opinion were addressed to Financial Security), including, without limitation, the approving opinion of bond counsel. Each of the foregoing shall be in form and substance acceptable to Financial Security. Copies of all drafts of such documents prepared subsequent to the date of the Commitment (blackhned to reflect all revisions from previously reviewed drafts) shall be furnished to Financial Security for review and approval. Final drafts of such documents shall be provided to Financial Security at least three (3) business days prior to the ~ssuance of the Policy, unless Financial Security shall agree to some shorter period. (b) Evidence of wire transfer in federal funds of an amount equal to the insurance premium, unless alternative arrangements for the payment of such amount acceptable to Financial Security have been made prior to the delivery date of the Bonds. (c) Standard & Poor's Credit Market Services, Moody's Investors Service Inc. and Fitch IBCA, Inc. will separately present bills for their respective fees relating to the Bonds. Payment of such bills should be made directly to such rating agency. Payment of the rating fee is not a condibon to release of the Pohcy by Financial Security. 6. Promptly after the closing of the Bonds, Financial Security shall receive three completed sets of executed documents (one original and e~ther (i) two photocopies (each unbound) or (i0 three compact discs). 7. The Official Statement shall contain the language provided by Financial Security and only such other references to Financial Security or otherwise as Financial Security shall supply or approve. FINANCIAL SECURITY SHALL BE PROVIDED WITH SIX PRINTED COPIES OF THE OFFICIAL STATEMENT. EXHIBITA MUNICIPAL BOND INSURANCE COMMITMENT TERM SHEET Issuer: City of Delrey Beach, Florida Name of Bonds Insured: Utilities Tax Refunding Revenue Bonds, Series 2002 Principal Amount of Bonds Insured: Not to Exceed $15,505,000 Date of Commitment: November 25, 2002 Expiration Date: Friday, January 24, 2003* Premium: .325% of total debt service on the Bonds Insured Additional Conditions: The amortization schedule for, and final maturity date of, the Bonds shall be acceptable to Financial Security. The Issuer shall covenant not to issue any other limited tax bonds that are secured by a lien that is senior to the lien securing the Bonds. 3. See attached Exhibits B-C. Terms used in this Commitment and not otherwise defined shall have the meanings ascribed to them in the document authorizing the issuance of and setting forth the terms for the Bonds described above (the "Resolution"). FINANCIAL SECURITY ASSURANCE INC. Authorized Officer *To keep the Commitment in effect to the Expiration Date set forth above, Financial Security must receive a duplicate of this Exhibit A executed by an authorized officer by the earlier of the date on which the Official Statement containing disclosure language about Financial Security is c~rculated and ten days from the date of this Commitment. The undersigned agrees that if the Bonds are insured by a policy of municipal bond insurance, such insurance shall be provided by F~nancial Security in accordance w~th the terms of the Commitment. CITY OF DELRAY BEACH, FLORIDA Authorized Officer C \Documents and Setbngs\w~lhamsm GTLAW\Local Settings\Temporary Internet F~Ies\OLK3897~EMAIL 59019_N doc OPINION REQUIREMENTS EXHIBIT B Page I of 1 The Bond Resolution, as supplemented, is a legal, valid and binding obligation of the parties thereto, has been duly authorized, executed and delivered and is enforceable in accordance with its terms. There does not exist any action, suit, proceeding or investigation pending, or to the best of such counsel's knowledge, threatened which if adversely determined, could materially adversely affect (a) the financial condition of the Issuer, (b) the ability of the Issuer to perform its obligations under the Related Documents, (c) the security for the Bonds, or (d) the transactions contemplated by the Bond Resolution. Nothing has come to the attention of disclosure counsel which would cause them to believe that the final Official Statement (excluding information provided by Financial Security), as of its date and the date of issuance of the Policy, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary ~n order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Bonds are special, limited obligations of the Issuer payable solely from and secured solely by a pledge of and first priority lien upon the Utilities Tax revenue levied and collected by the Issuer and deposited in the Sinking Fund created and established pursuant to the terms and provisions of the Bond Resolution. C \Documents and Sett~ngs~w~lharnsm GTLAW\Local Settings\Temporary Internet FiIes\OLK3897~EMAIL 59019_N doc BOND RESOLUTION REQUIREMENTS EXHIBIT C Page 1 of 4 The Resolution shall incorporate the following requirements either in one section or article entitled "Provisions Relating to Bond Insurance" (or the like), the provisions of which section or article shall be stated in the Resolution to govern, notwithstanding anything to the contrary set forth in the Resolution, or individually in the appropriate sections: (a) "Insurance Policy" shall be defined as follows: "the insurance policy issued by the Insurer guaranteeing the scheduled payment of principal of and interest on the Bonds when due". "Insurer" shall be defined as follows: "Financial Security Assurance Inc., a New York stock insurance company, or any successor thereto or assignee thereof''. (b) In the definition of Permitted Investments delete the capacity of the Credit Facility Issuer to approve investments. (c) The Insurer shall be deemed to be the sole holder of the Insured Bonds for the purpose of exercising any voting right or privilege or giving any consent or direction or taking any other action that the holders of the Bonds insured by it are entitled to take pursuant to paragraph H of Section 4 of Resolution R-98-91. (d) The Insurer shall be included as a third party beneficiary to the Resolution. (e) Upon the occurrence of an extraordinary optional or special or extraordinary mandatory redemption in part, the selection of Bonds to be redeemed shall be subject to the approval of the Insurer. The exercise of any provision of the Resolution which permits the purchase of Bonds in lieu of redemption shall require approval of the Insurer wherein any Bond so purchased is not extinguished. (0 No modification or amendment to the Resolution or any other transaction document including any underlying security agreement (each a "Related Document") may become effective except upon obtaining the prior written consent of the Insurer. Copies of any modification or amendment to the Resolution or any other Related Document shall be sent to Standard & Poor's Credit Market Services and Moody's Investors Service, Inc. at least 10 days prior to the effective date thereof. (g) Unless the Insurer otherwise directs, upon the occurrence and continuance of an Event of Default or the occurrence and continuance of an event whmh with notice or lapse of time or both would constitute an Event of Default amounts on deposit in the Construction Fund shall not be disbursed but shall instead be applied to the payment of debt service or redemption price of the Bonds. (h) The rights granted to the Insurer under the Resolution or any other Related Document to request, consent to or direct any action are rights granted to the Insurer in consideration of its issuance of the Insurance Pohcy. Any exercise by the Insurer of such rights is merely an exercise of the Insurer's contractual rights and shall not be construed or deemed to be taken for the benefit or on behalf of the Bondholders nor does such action evidence any position of the Insurer, positive or negative, as to whether Bondholder consent is required in addition to consent of the Insurer. (i) To accomplish defeasance the Issuer shall cause to be delivered (i) a report of an independent firm of nationally recognized cerbfied public accountants or such other accountant as shall be acceptable to the Insurer ("Accountant") verifying the sufficiency of the escrow established to pay the Bonds in full on the maturity or redemption date ("Verification"), (ii) an Escrow Deposit Agreement (which shall be acceptable in form and substance to the Insurer), (iii) an opinion of nationally recognized bond counsel to the effect that the Bonds are no longer "Outstanding" under the Resolution and (iv) if there is a Paying Agent for the Bonds a certificate of discharge of the Paying Agent with respect to the Bonds; each Verification and defeasance opinion shall be acceptable ~n form and substance, and addressed, to the Issuer, the Paying Agent and the Insurer. The Insurer shall be provided with final drafts of the above-referenced documentabon not less than five bus~ness days prior to the funding of the escrow. Bonds shall be deemed "Outstanding" under the Resolution unless and until they are in fact paid and retired or the above criteria are met. (J) Amounts paid by the Insurer under the Insurance Policy shall not be deemed paid for purposes of the Resolution and shall remain Outstanding and continue to be due and owing until paid by the Issuer in accordance with the Resolution. The Resolution shall not be discharged unless all amounts due or to become due to the Insurer have been paid in full or duly provided for. C \Documents and Setbngs\wdhamsm GTLAW\Local Setbngs\Temporary Internet Fdes\OLK389'AEMAIL 59019_N doc (k) (m) EXHIBIT C Page 2 of 4 Each of the Issuer and the Paying Agent covenant and agree to take such action (including, as applicable, filing of UCC financing statements and continuations thereof) as is necessary from time to time to perfect or otherwise preserve the priority of the pledge of Trust Estate under applicable law. Claims Upon the Insurance Policy and Payments by and to the Insurer. If, on the third Business Day prior to the related scheduled interest payment date or principal payment date ("Payment Date") there is not on deposit with the Paying Agent, after making all transfers and deposits required under the Resolution, moneys sufficient to pay the principal of and interest on the Bonds due on such Payment Date, the Paying Agent shall give notice to the Bond Insurer and to its designated agent (if any) (the "Insurer's Fiscal Agent") by telephone or telecopy of the amount of such deficiency by 12:00 noon, New York City time, on such Business Day. If, on the second Business Day prior to the related Payment Date, there continues to be a deficiency in the amount available to pay the principal of and interest on the Bonds due on such Payment Date, the Paying Agent shall make a claim under the Insurance Policy and give notice to the Insurer and the Insurer's Fiscal Agent (if any) by telephone of the amount of such deficiency, and the allocation of such deficiency between the amount required to pay interest on the Bonds and the amount required to pay principal of the Bonds, confirmed in writing to the Insurer and the Insurer's Fiscal Agent by 12:00 noon, New York City time, on such second Business Day by filling ~n the form of Notice of Claim and Certificate delivered with the Insurance Policy. In the event the claim to be made is for a mandatory sinking fund redemption installment, upon receipt of the moneys due, the Paying Agent shall authenticate and deliver to affected Bondholders who surrender their Bonds a new Bond or Bonds in an aggregate principal amount equal to the unredeemed portion of the Bond surrendered. The Paying Agent shall designate any portion of payment of principal on Bonds paid by the Insurer, whether by virtue of mandatory sinking fund redemption, maturity or other advancement of maturity, on its books as a reduction in the principal amount of Bonds registered to the then current Bondholder, whether DTC or its nominee or otherwise, and shall issue a replacement Bond to the Insurer, regmtered in the name of Financial Secunty Assurance Inc., in a principal amount equal to the amount of principal so paid (without regard to authorized denominations); provided that the Paying Agent's failure to so designate any payment or issue any replacement Bond shall have no effect on the amount of principal or interest payable by the Issuer on any Bond or the subrogation rights of the Insurer. The Paying Agent shall keep a complete and accurate record of all funds deposited by the Insurer into the Policy Payments Account (defined below) and the allocation of such funds to payment of ~nterest on and principal paid m respect of any Bond. The Insurer shall have the right to inspect such records at reasonable times upon reasonable nobce to the Paying Agent. Upon payment of a claim under the Insurance Policy the Paying Agent shall estabhsh a separate special purpose trust account for the benefit of Bondholders referred to herein as the "Pohcy Payments Account" and over which the Paying Agent shall have exclusive control and sole right of withdrawal. The Paying Agent shall receive any amount paid under the Insurance Policy in trust on behalf of Bondholders and shall deposit any such amount Jn the Policy Payments Account and distribute such amount only for purposes of making the payments for which a claim was made. Such amounts shall be disbursed by the Paying Agent to Bondholders in the same manner as principal and interest payments are to be made with respect to the Bonds under the sections hereof regarding payment of Bonds. It shall not be necessary for such payments to be made by checks or wire transfers separate from the check or wire transfer used to pay debt servme w~th other funds avadable to make such payments. Notwithstanding anything to the contrary otherwise set forth in the Resolution, and to the extent permitted by law, in the event amounts paid under the Insurance Policy are apphed to claims for payment of principal of or interest on the Bonds, interest on such principal of and interest on such Bonds shall accrue and be payable from the date of such payment at the greater of (0 the per annum rate of interest, publicly announced from time to time by JPMorgan Chase Bank or its successor at its pnncipal office in the City of New York, as its prime or base lending rate plus 3%, and (il) the then apphcable rate of interest on the Bonds provided that in no event shall such rate exceed the maximum rate permissible under applicable usury or similar laws limiting interest rates. Funds held in the Policy Payments Account shall not be invested by the Paying Agent and may not be applied to satisfy any costs, expenses or liabilities of the Paying Agent. Any funds remaining in the Policy Payments Account following a Bond payment date shall promptly be remitted to the Insurer. The Insurer shall, to the extent it makes any payment of principal of (or, in the case of Capital Appreciation Bonds, accreted value) or interest on the Bonds, become subrogated to the rights of the recipients of such payments in accordance with the terms of the Insurance Policy. The obligations to the Insurer shall survive discharge or terminabon of the Related Documents. C \Documents and Setbngs\wilhamsm GTLAW\Local Setbngs\Temporary Internet Fdes\OLK3897~EMAIL 59019_N doc (n) (o) (P) (q) ir) EXHIBIT C Page 3 of 4 The Issuer shall pay or reimburse the Insurer any and all charges, fees, costs and expenses which the Insurer may reasonably pay or incur in connection with (i) the administration, enforcement, defense or preservation of any rights or security in any Related Document; (ii) the pursuit of any remedies under the Resolution or any other Related Document or otherwise afforded by law or equity, (iii) any amendment, waiver or other action with respect to, or related to, the Resolution or any other Related Document whether or not executed or completed, (iv) the violation by the Issuer or the Obhgor of any law, rule or regulation, or any judgment, order or decree applicable to it or iv) any litigation or other dispute in connection with the Resolution or any other Related Document or the transactions contemplated thereby, other than amounts resulting from the failure of the Insurer to honor its obligations under the Insurance Policy. The Insurer reserves the right to charge a reasonable fee as a condition to executing any amendment, waiver or consent proposed in respect of the Resolution or any other Related Document. After payment of reasonable expenses of the Paying Agent, the application of funds realized upon default shall be applied to payment of expenses of the Issuer or rebate only after the payment of debt service due and past due on the Bonds, together with replenishment of the Debt Service Reserve Fund. The Insurer shall be entitled to pay principal (or, in the case of Capital Appreciation Bonds, accreted value) or interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer (as such terms are defined in the Insurance Policy) and any amounts due on the Bonds as a result of acceleration of the maturity thereof in accordance with the Resolution, whether or not the insurer has received a Notice of Nonpayment (as such terms are defined in the Insurance Policy) or a claim upon the Insurance Policy. The notice address of the Insurer is: Financial Secudty Assurance Inc., 350 Park Avenue, New York, New York 10022-6022, Attention: Managing Director- Surveillance, Re: Policy No. , Telephone: (212) 826-0100; Telecop~er: (212) 339-3556. In each case in which notice or other communicabon refers to an Event of Default, then a copy of such notice or other communication shall also be sent to the attention of the General Counsel and shall be marked to indicate "URGENT MATERIAL ENCLOSED." The Insurer shall be provided with the following information: (i) Annual audited financial statements within 150 days after the end of the Issuer's fiscal year (together with a certification of the Issuer that it is not aware of any default or Event of Default under the Resolution), and the Issuer's annual budget within 30 days after the approval thereof together with such other reformation, data or reports as the Insurer shall reasonably request from time to time; (ii) Notice of any draw upon the Debt Service Reserve Fund within two Business Days after knowledge thereof other than ii) withdrawals of amounts in excess of the Debt Service Reserve Requirement and (ii) withdrawals in connection with a refunding of Bonds; (iii) Notice of any default known to the Paying Agent or the Issuer within five Business Days after knowledge thereof; (iv) Prior notice of the advance refunding or redemption of any of the Bonds, including the pnncipal amount, maturities and CUSIP numbers thereof; iv) Nobce of the resignation or removal of the Paying Agent and Bond Registrar and the appointment of, and acceptance of duties by, any successor thereto; (vi) Notice of the commencement of any proceeding by or against the Issuer commenced under the United States Bankruptcy Code or any other applicable bankruptcy, insolvency, receivership, rehabilitation or similar law (an "Insolvency Proceeding"); (VII) Not~ce of the makJng of any claim in connection w~th any Insolvency Proceeding seeking the avoidance as a preferential transfer of any payment of principal of, or interest on, the Bonds; C \Documents and Sethngs\w~lhamsm GTLAW\Local Settings\Temporary Intemet F~Ies\OLK3897~EMAIL 59019_N doc EXHIBIT C Page 4 of 4 (s) (t) (u) (v) (viii) A full original transcript of all proceedings relating to the execution of any amendment or supplement to the Related Documents; and (ix) All reports, notices and correspondence to be delivered to Bondholders under the terms of the Related Documents. Notwithstanding satisfaction of other conditions to the issuance of Additional Bonds contained in the Resolution, no such issuance may occur (1) should any Event of Default (or any event which, once all notice or grace periods have passed, would constitute an Event of Default) have occurred and be continuing unless such default shall be cured upon such issuance and (2) unless the Debt Service Reserve Fund is fully funded at its requirement (including the new issue) upon the issuance of such Additional Bonds, in either case unless otherwise permitted by the Insurer. For tax-backed transactions, subordinate debt shall be subject to the Insurer's consent. In determining whether any amendment, consent or other action to be taken, or any failure to act, under the Resolution would adversely affect the security for the Bonds or the rights of the Bondholders, the Paying Agent shall consider the effect of any such amendment, consent, action or inaction as if there were no Insurance Policy. No contract shall be entered into nor any action taken by which the rights of the Insurer or security for or sources of payment of the Bonds may be impaired or prejudiced in any material respect except upon obtaining the prior written consent of the Insurer. If the proceeds of the Bonds include a refunding there shall be delivered an opinion of Bond Counsel addressed to the Insurer (or a rehance letter relating thereto) or a certificate of discharge of the Paying Agent for the Refunded Bonds to the effect that, upon the making of the required deposit to the escrow, the legal defeasance of the Refunded Bonds shall have occurred, If the Refunded Bonds are FSA-~nsured, at least three business days prior to the proposed date for delivery of the Policy with respect to the Refunding Bonds, the Insurer shall also receive (i) the verification letter, of which Financial Security shall be an addressee, by an independent firm of certified public accountants which is either nationally recognized or otherwise acceptable to the Insurer, of the adequacy of the escrow established to provide for the payment of the Refunded Bonds in accordance with the terms and provisions of the Escrow Deposit Agreement, and (ii) the form of an opinion of Bond Counsel addressed to the Insurer (or a reliance letter relating thereto) to the effect that the Escrow Deposit Agreement is a valid and binding obligation of the parties thereto enforceable in accordance with its terms (such Escrow Deposit Agreement to provide that only with the Insurer consent may an amendment occur) An executed copy of each of such opinion and reliance letter, if applicable, or Paying Agent's discharge certificate, as the case may be, shall be forwarded to the Insurer prior to delivery of the Bonds. C \Docurnents and Setbngs\w~lhamsm GTLAW\Local Setbngs\Temporary Internet F~Ies\OLK3897~EMAIL 59019_N doc MUNICIPAL BOND DEBT SERVICE RESERVE INSURANCE COMMITMENT Issuer: Bonds Insured: Premium: Policy Limit: City of Delray Beach, Florida Date of Commitment: November 25, 2002 Bonds 2.00% of Policy Limit Expiration Date: Friday, January 24, 2003 A dollar amount equal to the Debt Service Reserve Requirement, as specified under the Resolution FINANCIAL SECURITY ASSURANCE INC. ("Financial Security"), a stock insurance company, hereby commits to issue its Municipal Bond Debt Service Reserve Insurance Policy (the "Reserve Policy"), in the form attached hereto as Exhibit A, relating to the above-described debt obligations (the "Bonds"), subject to the terms and conditions contained herein or added hereto. All terms used herein and not otherwise defined shall have the meanings ascribed to them ~n the document setting forth the security for and authorizing the issuance of the Bonds (the "Resolution"). To keep this Commitment in effect after the Expiration Date set forth above, a request for renewal must be submitted to Financial Secunty prior to such expiration date. Financial Security reserves the right to refuse wholly or in part to grant a renewal. To keep the Commitment in effect to the Expiration Date set forth above, Financial Security must receive a duplicate of this Commitment executed by an appropriate officer of the Issuer by the date whmh is ten days from the date of this Commitment. THE RESERVE POLICY SHALL BE ISSUED UPON SATISFACTION OF THE FOLLOWING CONDITIONS: The documents to be executed and delivered in connection with the issuance and sale of the Bonds shall not contain any untrue or misleading statement of a material fact and shall not fail to state a material fact necessary in order to make the information contained therein not misleading. The Resolution shall provide: that the DSRF will be fully funded upon the issuance of any additional bonds and that the draws on the Reserve Fund shall be restored from the first available Revenues with not less than 1/12th paid per month. There shall be no material change in or affecting the Bonds (including, without limitation, the security for the Bonds) or the financing documents or the Official Statement (or any similar disclosure documents) to be executed and delivered in connection with the issuance and sale of the Bonds from the descriptions or forms thereof approved by Financial Secunty. 4. Financial Security shall be provided with: (a) A letter from Greenberg Traurig, LLP ("Bond Counsel") addressed to Financial Security to the effect that Financial Security may rely on the approving opinion(s) of Bond Counsel as if such opinion(s) were addressed to Financial Security. (b) An opinion(s) of Bond Counsel, addressed to and in form and substance satisfactory to Financial Security, as to the (i) due authorization, validity and enforceability of the Resolution, the Insurance Agreement and the document which incorporates the requirements set forth in Paragraph 5 hereof and (ii) the Policy constituting a debt service reserve insurance policy under the applicable prows~ons of the Resolubon. Page 1 of 3 (c) Evidence of wire transfer in federal funds in an amount equal to the insurance premium, unless alternabve arrangements for the payment of such amount acceptable to Financial Security have been made prior to the delivery date of the Reserve Policy. The Resolution shall include the following terms and conditions and shall be in form and substance acceptable to Financial Security: (a) The Issuer shall repay any draws under the Reserve Policy and pay all related reasonable expenses incurred by Financial Security. Interest shall accrue and be payable on such draws and expenses from the date of payment by Financial Security at the Late Payment Rate. "Late Payment Rate" means the lesser of (a) the greater of (i) the per annum rate of interest, pubhcly announced from time to time by JPMorgan Chase Bank at its principal office in the C~ty of New York, as ~ts prime or base lending rate ("Prime Rate") (any change in such Prime Rate to be effective on the date such change is announced by JPMorgan Chase Bank) plus 3%, and (ii) the then applicable highest rate of interest on the Bonds and (b) the maximum rate permissible under applicable usury or similar laws limiting interest rates. The Late Payment Rate shall be computed on the basis of the actual number of days elapsed over a year of 365 days. In the event JPMorgan Chase Bank ceases to announce ~ts Prime Rate publicly, Prime Rate shall be the publicly announced prime or base lending rate of such national bank as Financial Security shall specify. Repayment of draws and payment of expenses and accrued interest thereon at the Late Payment Rate (collectively, "Policy Costs") shall commence in the first month following each draw, and each such monthly payment shall be in an amount at least equal to 1112 of the aggregate of Policy Costs related to such draw. Amounts in respect of Policy Costs paid to Financial Secudty shall be credited first to interest due, then to the expenses due and then to principal due. As and to the extent that payments are made to Financial Security on account of principal due, the coverage under the Reserve Policy will be increased by a like amount, subject to the terms of the Reserve Policy. All cash and investments in the debt service reserve fund established for the Bonds (the "Reserve Fund") shall be transferred to the debt service fund for payment of debt service on Bonds before any drawing may be made on the Reserve Policy or any other credit facility credited to the Reserve Fund in lieu of cash ("Credit Facility"). Payment of any Policy Costs shall be made prior to replenishment of any such cash amounts. Draws on all Credit Facilities (including the Reserve Pohcy) on which there is available coverage shall be made on a pro-rata basis (calculated by reference to the coverage then available thereunder) after applying all available cash and investments in the Reserve Fund. Payment of Policy Costs and reimbursement of amounts with respect to other Credit Facilities shall be made on a pro-rata basis prior to replenishment of any cash drawn from the Reserve Fund. (b) If the Issuer shall fail to pay any Policy Costs in accordance with the requirements of Paragraph 5(a) hereof, Financial Security shall be entitled to exercise any and all legal and equitable remedies available to it, including those provided under the Resolution other than (i) acceleration of the maturity of the Bonds or (ii) remedies which would adversely affect owners of the Bonds. (c) The Resolution shall not be discharged until all Policy Costs owing to Financial Security shall have been paid in full. The Issuer's obligabon to pay such amounts shall expressly survive payment in full of the Bonds. (d) The additional bonds test and the rate covenant in the Resolution shall expressly provide for at least one braes coverage of the Pohcy Costs then due and owing. (e) The Resolution shall require the Paying Agent to ascertain the necessity for a claim upon the Reserve Policy and to prowde notice to Financial Security in accordance with the terms of the Reserve Policy at least five business days prior to each date upon which interest or principal is due on the Bonds. Where deposits Page 2 of 3 C.\Documents and Setbngs\wllhamsm GTLAW\Local Setbngs\Temporary Internet F~Ies\OLK3897\EMAIL 59304_D.doc are required to be made by the Issuer with the Paying Agent to the debt service fund for the Bonds more often than semi-annually, the Paying Agent shall be instructed to give notice to Financial Security of any failure of the Issuer to make timely payment in full of such deposits within two business days of the date due. The Reserve Policy shall expire on the eadier of the date the Utilities Tax Revenue Refunding Bonds, Sedes 2002 are no longer outstanding and the final maturity date of the Bonds. The Issuer shall deliver to Financial Security an executed Insurance Agreement in substantially the form of Exhibit B hereto. Any official statement or similar disclosure document relating to the Bonds shall contain only such references to the Reserve Policy and Financial Security as we shall supply or approve. Financial Security shall insure the Bonds pursuant to its Commitment Letter dated November 25, 2002. Promptly after the issuance of the Reserve Policy, Financial Security shall receive a complete set of executed documents implementing the requirements of this Commitment. FINANCIAL SECURITY ASSURANCE INC. Authorized Officer To keep this commitment in effect to the Expiration Date set forth on the first page, Financial Security must receive by the date which is ten days from the date of this Commitment a duplicate of this Commitment executed by an appropriate officer of the Issuer. The undersigned agrees that if the debt service reserve fund requirement for the Bonds is met in whole or in part by credit instrument, such credit instrument shall be a Reserve Policy provided by F~nancial Security in accordance with the terms of this Commitment. CITY OF DELRAY BEACH, FLORIDA Authorized Officer Page 3 of 3 C'\Documents and Settmgs~,w~lliamsm. GTLAW\Local Settings\Temporary ~ntemet Files\OLK3897\EMAIL 59304_D.doc EXHIBIT B FINANCIAL SECURITY ASSURANCE® MUNICIPAL BOND DEBT SERVICE RESERVE INSURANCE POLICY ISSUER: City of Delray Beach, Florida Policy No.: BONDS: $[total par amount of bonds insured] in aggregate Effective Date: December 19, 2002 principal amount of Bonds Premium: $ FINANCIAL SECURITY ASSURANCE INC. ("Financial Security.'), for consideration received, hereby UNCONDITIONALLY AND IRREVOCABLY agrees to pay to the trustee (the 'q'rustee") or paying agent (the "Paying Agent") as set forth in the documentation (the "Bond Document") providing for the issuance of and secudng the Bonds, for the benefit of the Owners, subject only to the terms of this Policy (which includes each endorsement hereto), that portion of the pnncipal of and interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer. Financial Secudty will make payment as provided in this Policy to the Trustee or Paying Agent on the later of the Business Day on which such principal and interest becomes Due for Payment or the Business Day next following the Business Day on which Financial Security shall have received Notice of Nonpayment, in a form reasonably satisfactory to it. A Notice of Nonpayment w~ll be deemed received on a given Business Day if it is received pdor to 1:00 p.m. (New York time) on such Business Day; otherwise, it will be deemed received on the next Business Day. If any Notice of Nonpayment received by Financial Secudty is incomplete, it shall be deemed not to have been received by F~nancial Secudty for purposes of the preceding sentence and Financial Secudty shall promptly so advise the Trustee, Paying Agent or Issuer, as appropnate, who may submit an amended Notice of Nonpayment. Payment by Financial Secudty to the Trustee or Paying Agent for the benefit of the Owners shall, to the extent thereof, discharge the obligation of Financial Secudty under th~s Policy. Upon such payment, Financial Secudty shall become entitled to reimbursement of the amount so paid (together with interest and expenses) pursuant to the [Bond Document or][Insurance Agreement]. Upon disbursement in respect of a Bond, Financial Security shall become the owner of the Bond, any appurtenant coupon to the Bond or right to receipt of payment of principal of or interest on the Bond and shall be fully subrogated to the rights of the Owner, including the Owner's right to receive payments under the Bond and all insurance policies in respect of the Bond, to the extent of any payment by Financial Security hereunder. The amount available under this Policy for payment shall not exceed the Policy Limit. The amount available at any particular time to be paid to the Trustee or Paying Agent under the terms of this Policy shall automatically be reduced by any payment under this Policy. However, after such payment, the amount available under this Policy shall be reinstated in full or in part, but only up to the Policy Limit, to the extent of the reimbursement of such payment (exclusive of interest and expenses) to Financial Secudty by or on behalf of the Issuer. Within three Business Days of such reimbursement, Financial Secudty shall provide the Trustee, the Paying Agent and the Issuer with nobce of the reimbursement and reinstatement. Payment under th~s Policy shall not be available with respect to (a) any Nonpayment that occurs pdor to the Effective Date or after the Termination Date of this Policy or (b) Bonds that are not outstanding under the Bond Document. If the amount payable under this Policy is also payable under another insurance policy or surety bond insudng the Bonds, payment first shall be made under this Policy to the extent of the amount available under this Policy up to the Policy Limit. In no event shall Financial Secudty incur duplicate liability for the same amounts owing with respect to the Bonds that are covered under this Pohcy and any other insurance policy or surety bond that Financial Secudty has issued. Except to the extent expressly modified by an endorsement hereto, the following terms shall have the meanings specified for all purposes of this Pohcy. "Business Day'' means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State of New York are, or the Insurer's Fiscal Agent is, authonzed or required by law or executive order to remain closed. "Due for Payment" means (a) when referring to the pnncipal of a Bond, payable on the stated matudty date thereof or the date on which the same shall have been duly called for mandatory s~nking fund redemption and does not refer to any eadier date on which payment is due by reason of call for redemption ((~ther than by mandatory sinking fund redemption), acceleration or other advancement of maturity unless Financial Secudty shall elect, in its sole discretion, to pay such principal due Page 2 of 2 Policy No. upon such acceleration together with any accrued interest to the date of acceleration and (b) when referring to interest on a Bond, payable on the stated date for payment of interest. "Insurance Agreement" means the Insurance Agreement dated as of the effective date hereof in respect of this Policy, as the same may be amended or supplemented from time to time. "Nonpayment" means, in respect of a Bond, the failure of the Issuer to have provided sufficient funds to the Paying Agent for payment in full of all principal and interest that is Due for Payment on such Bond. "Nonpayment" shall also include, in respect of a Bond, any payment of principal or interest that is Due for Payment made to an Owner by or on behalf of the Issuer that has been recovered from such Owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final, nonappealable order of a court having competent jurisdiction. "Notice" means telephonic or telecopied notice, subsequently confirmed in a signed writing, or written notice by registered or certified mail, from the Issuer, the Trustee or the Paying Agent to Financial Security which nobce shall specify (a) the person or entity making the claim, (b) the Policy Number, (c) the claimed amount and (d) the date such claimed amount became Due for Payment. "Owner" means, in respect of a Bond, the person or entity who, at the tJme of Nonpayment, is entitled under the terms of such Bond to payment of principal or ~nterest thereunder, except that "Owner" shall not include the Issuer or any person or entity whose direct or indirect obligation consbtutes the underlying security for the Bonds. "Policy Limit" shall be the dollar amount of the debt service reserve fund required to be maintained for the Bonds by the Bond Document from time to time (the "Debt Service Reserve Requirement"), but in no event shall the Policy L~mit exceed $1,300,000. The Policy Limit shall automabcally and irrevocably be reduced from time to time by the amount of each reduction in the Debt Service Reserve Requirement, as provided in the Bond Document. '"Termination Date" means the earlier of June 1, 2016 and the date the Bonds are no longer outstanding under the Bond Document. Financial Secunty may appoint a fiscal agent (the "Insurer's Fiscal Agent") for purposes of this Policy by giving written notice to the Trustee and the Paying Agent specifying the name and notice address of the Insurer's Fiscal Agent. From and after the date of receipt of such notice by the Trustee and the Paying Agent, (a) copies of all notices required to be delivered to Financial Security pursuant to this Policy shall be simultaneously delivered to the Insurer's Fiscal Agent and to Financial Secudty and shall not be deemed received untJI received by both and (b) all payments required to be made by Financial Security under this Policy may be made directly by Financial Secudty or by the Insurer's Fiscal Agent on behalf of F~nancial Security. The Insurer's Fiscal Agent is the agent of F~nancial Secunty only and the Insurer's F~scal Agent shall in no event be liable to any Owner for any act of the Insurer's Fiscal Agent or any failure of Financial Secudty to deposit or cause to be deposited sufficient funds to make payments due under this Policy. To the fullest extent permitted by applicable law, Financial Security agrees not to assert, and hereby waives, only for the benefit of each Owner, all dghts (whether by counterclaim, setoff or otherwise) and defenses (including, w~thout limitation, the defense of fraud), whether acquired by subrogation, assignment or otherwise, to the extent that such rights and defenses may be available to Financial Secudty to avoid payment of its obligations under this Policy in accordance with the express pmwsions of this Pohcy. This Pohcy sets forth in full the undertaking of Financial Security, and shall not be modified, altered or affected by any other agreement or instrument, including any modification or amendment thereto. Except to the extent expressly modified by an endorsement hereto, (a) any premium paid in respect of th~s Policy is nonrefundable for any reason whatsoever, including payment, or provision being made for payment, of the Bonds pdor to matudty and (b) this Pohcy may not be canceled or revoked. THIS POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. In witness whereof, FINANCIAL SECURITY ASSURANCE INC. has caused this Policy to be executed on its behalf by its Authorized Officer. [Countersignature] FINANCIAL SECURITY ASSURANCE INC. By By A subsidiary of Financial Security Assurance Holdings Ltd. 350 Park Avenue, New York, N.Y. 10022-6022 Form 501B NY (8/96) Authorized Officer (212) 826-0100 · Exhibit F INSURANCE AGREEMENT INSURANCE AGREEMENT, dated as of , by and between City of Delray Beach (the "Issuer") and Financial Security Assurance Inc. (the "Insurer") (the "Agreement"). In consideration of the issuance by the Insurer of its Municipal Bond Debt Service Reserve Insurance Policy (the "Reserve Policy") with respect to the Issuer's Bonds (the "Bonds") issued under the Resolution dated (the "Resolution") and the Issuer's payment to the Insurer of the insurance premium for the Reserve Policy, the Insurer and the Issuer hereby covenant and agree as follows: Upon any payment by the Insurer under the Reserve Policy, the Insurer shall furnish to the Issuer written instructions as to the manner in which payment of amounts owed to the Insurer as a result of such payment under the Reserve Policy shall be made. The Issuer shall pay the Insurer the principal amount of any draws under the Reserve Policy and pay all related reasonable expenses incurred by the Insurer and shall pay interest thereon from the date of payment by Financial Security at the Late Payment Rate. "Late Payment Rate" means the lesser of (a) the greater of (i) the per annum rate of ~nterest, publicly announced from time to time by JPMorgan Chase Bank at its principal office in the City of New York, as its prime or base lending rate ("Prime Rate") (any change in such Pnme Rate to be effective on the date such change is announced by JPMorgan Chase Bank) plus 3%, and (ii) the then applicable highest rate of interest on the Bonds and (b) the maximum rate permissible under applicable usury or similar laws hmit~ng interest rates. The Late Payment Rate shall be computed on the basis of the actual number of days elapsed over a year of 360 days. In the event JPMorgan Chase Bank ceases to announce its Prime Rate, the Prime Rate shall be the prime or base lend~ng rate of such national bank as the Insurer shall designate. Repayment of draws and payment of expenses and the interest accrued thereon at the Late Payment Rate (collectively, "Policy Costs") shall commence in the first month following each draw, and each such monthly payment shall be in an amount at least equal to 1/12th of the aggregate of Policy Costs related to such draw. Amounts in respect of Policy Costs paid to the Insurer shall be credited first to interest due, then to the expenses due and then to principal due. As and to the extent that payments are made to the Insurer on account of principal due, the coverage under the Reserve Policy will be increased by a like amount, subject to the terms of the Reserve Policy. All cash and investments in the Reserve Fund shall be transferred to the debt service fund for payment of debt service on the Bonds before any drawing may be made on the Reserve Policy or on any alternative credit instrument. Payment of any Policy Costs shall be made prior to replenishment of any such cash amounts. Draws on all alternative credit instruments (including the Reserve Policy) on which there is available coverage shall be made on a pro rata basis (calculated by reference to coverage then available under each such alternabve credit instrument) after applying available cash and investments in the Reserve Fund. Payment of Policy Costs and reimbursement of amounts with respect to alternative credit instruments shall be made on a pro- rata basis prior to replenishment of any cash drawn from the Reserve Fund. If the Issuer shall fail to pay any Policy Costs in accordance with the requirements of the Resolution and this Agreement, the Insurer shall be enbtled to exercise any and all legal and C:\Documents and Setbngs\williamsm. GTLAW\Local Setbngs\Temporary Internet Files\OLK3897\EMAIL 59304_D.doc equitable remedies available to it, including those provided under the Resolution, other than (i) acceleration of the maturity of the Bonds or (ii) remedies which would adversely affect owners of the Bonds. The Resolution shall not be discharged until all Policy Costs owing to the Insurer shall have been paid in full. The Issuer's obligation to pay such amounts shall expressly survive payment in full of the Bonds. In order to secure the Issuer's payment obligations with respect to the Policy Costs, there is hereby granted and perfected in favor of the Insurer a security interest (subordinate only to that of the owners of the Bonds) in all revenues and collateral pledged as security for the Bonds. 10. Policy Costs due and owing shall be included in debt service requirements for purposes of calculation of the additional bonds test and the rate covenant in the Resolution. 11. The Paying Agent shall ascertain the necessity for a claim upon the Reserve Policy and provide notice to the Insurer in accordance with the terms of the Reserve Policy at least five business days prior to each date upon which interest or principal is due on the Bonds. Where deposits are required to be made by the Issuer with the Paying Agent to the debt service fund for the Bonds more often than semi-annually, the Paying Agent shall g~ve notice to the Insurer of any failure of the Issuer to make timely payment in full of such deposits within two bus~ness days of the date due. 12. Notices to the Insurer shall be sent to the following address (or such other address as the Insurer may designate in writing): Financial Secudty Assurance Inc., 350 Park Avenue, New York, New York 10022-6022 Attention: Managing Director - Surveillance. 13. This Agreement may be executed in counterparts, each of which alone and all of which together shall be deemed one original Agreement. 14. If any one or more of the agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such agreements, provisions or terms shall be deemed severable from the remaining agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement. 15. All capitalized terms used herein and not otherwise defined shall have the meanings ascdbed to them in the Resolution. 16. This Agreement and the rights and obligations of the parties of the Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of New York. IN WITNESS WHEREOF, the parties hereto have set their hands as of the date written above. CITY OF DELRAY BEACH, FLORIDA FINANCIAL SECURITY ASSURANCE INC. By: By: Title: T~tle: Managing Director C.\Documents and Settmgs\wilhamsm GTLAW\Local Settings~,Ternporary Internet Files\OLK3897\EMAIL 59304_D doc RESOLUTION NO. 91-02 CITY OF DELRAY BEACH, FLORIDA General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) General Obligation Refunding Bond Resolution Adopted December 3, 2002 \\wpb-srv01~SANFORDS\399705v05\I 1/25/02\16787 011000 Resolution No. 91-02 SECTION 1. SECTION 2. SECTION 3. SECTION 4. SECTION 5. SECTION 6. SECTION 7. SECTION SECTION SECTION SECTION SECTION SECTION SECTION SECTION SECTION 20. SECTION 21. SECTION 22. SECTION 23. TABLE OF CONTENTS DEFINITIONS ......................................................................................................... 3 FINDINGS ............................................................................................................... 8 AUTHORITY OF THIS RESOLUTION ................................................................ 9 RESOLUTION CONSTITUTES CONTRACT ...................................................... 9 AUTHORIZATION AND DESCRIPTION OF BONDS ....................................... 9 REDEMPTION PROVISIONS ............................................................................. 11 EXECUTION OF BONDS .................................................................................... ! 1 8. NEGOTIABILITY, REGISTRATION ,aND CANCELLATION ........................ 12 9. BONDS MUTILATED, DESTROYED, STOLEN OR LOST ............................. 14 10. FORM OF BONDS .............................................................................................. 15 11. APPLICATION OF BOND PROCEEDS ............................................................. 24 12. SECURITY FOR THE BONDS .......................................................................... 25 13. COVENANTS OF THE CITY ............................................................................ 25 14. RULE 15C2-12 UNDERTAKING ...................................................................... 30 19. MODIFICATION OR AMENDMENT ............................................................... 34 SEVERABILITY OF INVALID PROVISIONS ................................................. 35 SALE OF BONDS ............................................................................................... 36 REMEDIES .......................................................................................................... 36 EFFECTIVE DATE ............................................................................................. 36 \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16757 011000 i Resolution No. 91-02 Resolution No. 91-02 A RESOLUTION OF THE CITY COMMISSION OF DELRAY BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $18,000,000 IN THE INITIAL AGGREGATE PRINCIPAL AMOUNT OF CITY OF DELRAY BEACH, FLORIDA GENERAL OBLIGATION REFUNDING BONDS, SERIES 2002 (DECADE OF EXCELLENCE PROGRAM); PROVIDING THE FORM AND TERMS OF THE BONDS; PROVIDING FOR THE PAYMENT OF THE BONDS FROM A TAX ON ALL TAXABLE PROPERTY IN THE CITY OF DELRAY BEACH; PROVIDING FOR THE UNDERTAKING BY THE CITY REGARDING SECONDARY MARKET DISCLOSURE AS REQUIRED BY RULE 15c2-12 OF THE SECURITIES AND EXCHANGE COMMISSION; PROVIDING FOR THE RIGHTS, REMEDIES AND SECURITY OF THE HOLDERS OF THE BONDS; PROVIDING FOR CERTAIN OTHER MATTERS DEEMED NECESSARY AND PROPER IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Commission of Delray Beach, Florida (the "Commission"), did, on October 16, 1989, adopt Resolution No. 77-89 entitled "A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, REPEALING RESOLUTION NO. 70-89 AND RESOLUTION NO. 76-89; PROVIDING HEREIN IN LIEU OF SUCH RESOLUTIONS FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF FINANCING THE (A) ACQUISITION, CONSTRUCTION, RECONSTRUCTION AND EQUIPPING OF CERTAIN FIRE FACILITIES IN THE PRINCIPAL AMOUNT OF NOT EXCEEDING $5,180,000, (B) ACQUISITION, CONSTRUCTION, AND RECONSTRUCTION OF CERTAIN STREET, SIDEWALK, ALLEY, RIGHTS OF WAY, DRAINAGE AND BEAUTIFICATION PROJECTS IN THE PRINCIPAL AMOUNT OF NOT EXCEEDING $11,207,000, (C) ACQUISITION, CONSTRUCTION, AND EQUIPPING OF IMPROVEMENTS TO CERTAIN RECREATIONAL AND CULTURAL FACILITIES IN THE PRINCIPAL AMOUNT OF NOT EXCEEDING $4,605,000, AND (D) THE ACQUISITION AND CONSTRUCTION OF Resolution No. -02 VARIOUS NEIGHBORHOOD IMPROVEMENT PROJECTS IN THE PRINCIPAL AMOUNT OF NOT EXCEEDING $500,000; CALLING FOR A BOND REFERENDUM OF THE QUALIFIED ELECTORS OF THE CITY OF DELRAY BEACH TO BE HELD ON NOVEMBER 21, 1989, AS TO WHETHER GENERAL OBLIGATION BONDS FOR SUCH PROJECTS SHOULD BE ISSUED; AND PROVIDING AN EFFECTIVE DATE" (the "Original Resolution"), and the qualified electors of the City of Delray Beach, Florida (the "City"), did, at an election held on November 21, 1989 (the "Referendum"), authorize by majority vote the issuance of $21,492,000 general obligation bonds to finance the cost of the acquisition and construction of the projects described above (the "Decade of Excellence General Obligations Bonds"). WHEREAS, pursuant to Resolution No. 98-89, adopted by the Commission on December 12, 1989, as supplemented, the City did, on June 12, 1990, issue a portion of its Decade of Excellence General Obligation Bonds in the principal amount of $11,280,000 and designated such bonds "City of Delray Beach, Florida, General Obligation Bonds, Series 1990 (Decade of Excellence Program) (herein, the "1990 Bonds"); and WHEREAS, pursuant to Resolution No. 91-93 adopted by the Commission on September 28, 1993, the City did, on November 2, 1993, issue its City of Delray Beach, Florida, General Obligation Refunding Bonds, Series 1993 B (Decade of Excellence Program) (the "1993 B Bonds") in an aggregate principal amount of $8,835,000 for the purpose of paying and defeasing a portion of the City's outstanding 1990 Bonds; and WHEREAS, pursuant to the Original Resolution, as supplemented, and the authority granted by the Referendum, the City did, on November 2, 1993, issue the remaining unissued Decade of Excellence General Obligation Bonds in the principal amount of $10,210,000 and \\wpb-srv0BSANFORDSL399705v05\I 1/25/02\16787 011000 2 Resolution No. 91-02 designated such bonds "City of Delray Beach, Florida General Obligation Bonds, Series 1993 A (Decade of Excellence Program) (herein the "1993 A Bonds"); and WHEREAS, the outstanding 1993 A Bonds and the 1993 B Bonds are herein collectively referred to as the "Refunded Bonds"; and WHEREAS, the Commission hereby determines it to be in the best financial and economic interest of the City to issue its City of Delray Beach, Florida, General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) (the "Bonds"), in the initial aggregate principal amount of not exceeding $18,000,000 to pay and defease the Refunded Bonds; and WHEREAS, effective July 3, 1995, Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), provides that it is unlawful for a broker dealer or municipal securities dealer to purchase or sell municipal securities, which includes the Bonds, unless the issuer, which includes the City, has undertaken in a written agreement (herein, the "Undertaking") to provide to specified information repositories annual financial information and operating data relevant to the municipal securities and notice of certain specified material events; and WHEREAS, the Commission hereby determines to provide its Undertaking with respect to the Bonds in this Resolution; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA: SECTION 1. DEFINITIONS. That, in addition to the terms defined above, as used in this Resolution, the following terms shall have the following meanings unless the text otherwise expressly requires: \\wpb-srvOl\SANFORDS\399705v05\ll/25/02\16787 011000 3 Resolution No. 91-02 "Act" shall mean the Florida Constitution, Chapter 166, Florida Statutes, as amended and supplemented, the City Charter of Delray Beach, as amended and supplemented, and other applicable provisions of law. "Beneficial Owner" shall mean, for purposes of Section 14 of this Resolution only, any person which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (ii) is treated as the owner of any Bonds for federal income tax purposes. "Bond Insurance Policy" shall mean an insurance policy issued for the benefit of the Holders of any Bonds, pursuant to which the Bond Insurer shall be obligated to pay when due the principal of and interest on such Bonds to the extent of any deficiency in the amounts in the funds and accounts held under this Resolution, in the manner and in accordance with the terms provided in such Bond Insurance Policy. "Bond Insurer" shall mean successors. the issuer of a Bond Insurance Policy and its "Bondholder" or "Holder of Bonds" or "Owner" or any similar term, shall mean any person who shall be the registered owner of any Bond or Bonds Outstanding under the terms of this Resolution. "Bonds" shall mean the not exceeding in initial aggregate principal amount $18,000,000 General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program), authorized to be issued pursuant to this Resolution. "Code" shall mean the Internal Revenue Code of 1986, as amended, and all subsequent tax legislation duly enacted by the Congress of the United States. \\wpb-srv01\SANFOROS\399705v05\l 1/25/02\16787 011000 4 Resolution No. 91-02 "Defeasance Obligations" shall mean to the extent permitted by law: (a) U.S. Obligations; (b) Any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state (i) which are not callable prior to maturity or as to which irrevocable instructions have been given to the trustee of such bonds or other obligations by the obligor to give due notice of redemption and to call such bonds for redemption on the date or dates specified in such instructions, (ii) which are secured as to principal and interest and redemption premium, if any, by a fund consisting only of cash or bonds or other obligations of the character described in clause (a) hereof which fund may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the redemption date or dates specified in the irrevocable instructions referred to in subclause (i) of this clause (b), as appropriate, and (iii) as to which the principal of and interest on the bonds and obligations of the character described in clause (a) hereof which have been deposited in such fund along with any cash on deposit in such fund are sufficient to pay principal of and interest and redemption premium, if any, on the bonds or other obligations described in this clause (b) on the maturity date or dates thereof or on the redemption date or dates specified in the irrevocable instructions referred to in subclause (i) of this clause (b), as appropriate; (c) Evidences of indebtedness issued by the Federal Home Loan Banks, Federal Home Loan Mortgage Corporation (including participation certificates), Federal Financing Banks, or any other agency or instrumentality of the United States of America created by an act of Congress provided that the obligations of such agency or instrumentality are unconditionally guaranteed by the United States of America or any other agency or \\wpb-srv01\SANFORDSk399705v05\l 1/25/02\16787 011000 5 Resolution No. 91-02 instrumentality of the United States of America or of any corporation wholly-owned by the United States of America; and (d) Evidences of ownership of proportionate interests in future interest and principal payments on obligations described in (a) held by a bank or trust company as custodian. "Escrow Deposit Agreement" shall mean the Escrow Deposit Agreement, entered into by and between the City and a bank or trust company or national banking association, as trustee and escrow agent, to be hereafter designated by subsequent proceedings of the Commission, in connection with the refunding of the Refunded Bonds. "NRMSIR" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The NRMSIRs currently approved by the Securities and Exchange Commission as of the date of adoption of this Resolution are as follows: Bloomberg Municipal Repositories P.O. Box 840 Princeton, NJ 08542-0840 Phone: (609) 279-3225 Fax: (609) 279-5962 Intemet: Munis~Bloomberg.com DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 Phone: (201) 346-0701 Fax: (201) 947-0107 Intemet: Nrmsir~dpcdata.com Interactive Data Attn: Repository 100 Williams Street New York, NY 10038 Phone: (212) 771-6899 Fax: (212) 771-7390 E-mail: NRMSIR~interactivedata. com \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787'011000 6 Resolution No. 91-02 Standard & Poor's J. J. Kenny Repository 55 Water Street New York, NY 10041 Phone: (212) 438-4595 Fax: (212) 438-3975 E-mail: nnnsir_repository~sandp.com "Outstanding" shall mean, when used with reference to the Bonds, as of any particular date, all Bonds theretofore, or thereupon being, authenticated and delivered by the Registrar under this Resolution, except (i) Bonds theretofore or thereupon cancelled by the Registrar or surrendered to the Registrar for cancellation; (ii) Bonds with respect to which all liability of the City shall have been discharged in accordance with Section 13.D of this Resolution; (iii) Bonds in lieu of or in substitution for which other Bonds shall have been authenticated and delivered by the Registrar pursuant to any provision of this Resolution; (iv) Bonds cancelled after purchase in the open market or because of payment at, or redemption prior to maturity; and (v) Bonds held by the City. "Paying Agent" shall mean the bank or trust company and any successor bank or trust company appointed by the Commission to act as Paying Agent hereunder. "Permitted Investments" shall mean (i) U. S. Obligations, and (ii) all other investments permitted under the laws of Florida and acceptable to the Bond Insurer, if any. "Registrar" shall mean the bank or trust company and any successor bank or trust company appointed by the Commission to act as Registrar hereunder. "Tax Certificate" shall mean the Arbitrage Certificate executed by the City on the date of initial issuance and delivery of the Bonds, as such Tax Certificate may be amended from time to time, a source of guidance for achieving compliance with the Code. "U. S. Obligations" shall mean the direct obligations of, or obligations the timely payment of principal of and interest on which are unconditionally guaranteed by, the United \\wpb-srv01~SANFORDS~399705v05\l 1/25/02\16787 011000 7 Resolution No. 91-02 States of America, and, if determined by subsequent proceedings of the Commission, certificates which evidence ownership of the right to the payment of the principal of, or interest on, such obligations. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Words importing the singular number shall include the plural number and vice versa unless the context shall otherwise indicate. The word "person" shall include corporations; associations, natural persons and public bodies unless the context shall otherwise indicate. Reference to a person other than a natural person shall include its successors. SECTION 2. FINDINGS. A. That it is necessary, advantageous, desirable and in the best interests of the City and its residents that the Bonds be issued to accomplish the payment and defeasance of the Refunded Bonds. B. That for the payment and defeasance of the Refunded Bonds, the City shall deposit a portion of the proceeds derived from the sale of the Bonds in an escrow deposit trust fund, which together with other available funds, if any, and the income and earnings derived from the investment thereof shall be sufficient to pay and defease the Refunded Bonds, as the same become due and payable or are redeemed prior to maturity in accordance with the proceedings which authorized their issuance, all as provided in this Resolution and the Escrow Deposit Agreement. C. That the Bonds may be issued either all at one time or in part from time to time as the Commission may in its discretion hereafter determine by subsequent resolution. \\wpb-srv01\SANFOROS~399705v05\l 1/25/02\16787 011000 8 Resolution No. 91-02 SECTION 3. AUTHORITY OF THIS RESOLUTION. This Resolution is adopted pursuant to the Act. SECTION 4. RESOLUTION CONSTITUTES CONTRACT. In consideration of the acceptance of the Bonds, authorized to be issued hereunder by those who shall hold the same from time to time, the Resolution shall be deemed to be and shall constitute a contract between the City and such Bondholders, and the covenants and agreements herein set forth to be performed by the City shall be for the equal benefit, protection and security of the Holders of any and all of such Bonds, all of which shall be of equal rank and without preference, priority, or distinction of any of the Bonds over any other thereof except as expressly provided therein and herein. SECTION 5. AUTHORIZATION AND DESCRIPTION OF BONDS. Subject and pursuant to the provisions of this Resolution, Bonds of the City to be known as "General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program)," are hereby authorized to be issued in the initial aggregate principal amount of not exceeding Eighteen Million Dollars ($18,000,000) for the purpose of the payment and defeasance of the Refunded Bonds pursuant to the provisions of this Resolution and the Escrow Deposit Agreement and to pay the cost of' issuance of the Bonds. The Bonds shall be issued in registered form, shall be in the denomination of $5,000 each, or any integral multiple thereof, and shall be numbered separately and consecutively upward. The Bonds shall be designated "General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program)," with such other designation deemed appropriate and determined by subsequent proceeding of the Commission, shall bear interest at not exceeding the maximum rate or rates permitted by law, payable by check or draft made payable to the Holder of Bonds and mailed to the address of such Holder of Bonds as such \\wpb-$rv01\SANFORDSX399705v05\I 1/25/02\16787 011000 9 Resolution No. 91-02 name and address shall appear on the registration books of the City maintained by the Registrar at the close of business on the fifteenth day of the calendar month preceding each interest payment date or on the date the principal sum of any Bond is paid (herein, the "Record Date"); provided, however, that payment of interest on the Bonds may, at the option of any Holder of Bonds in an aggregate principal amount of at least $1,000,000, be transmitted by wire transfer to the designated account number of such Holder of any Bonds within the continental United States on file with the Paying Agent as of the Record Date. The Bonds may be issued as either serial Bonds or term Bonds or any combination thereof. The Bonds authenticated prior to the first interest payment date shall be dated and bear interest from the date determined by subsequent proceedings of the Commission. Bonds authenticated on or subsequent to the first interest payment date shall be dated as of the date of their registration and shall bear interest as of the interest payment date immediately preceding the date of registration, unless such date of registration shall be an interest payment date, in which case, such Bonds shall bear interest from such date of registration, or if registered during the period from a Record Date preceding an interest payment date to such interest payment date, then from such interest payment date if interest is then paid, as the case may be; provided, however, that if and to the extent there is a default in the payment of the interest due on such interest payment date, such defaulted interest shall be paid to the persons in whose name Bonds are registered on the registration books of the City maintained by the Registrar at the close of business on the fifteenth day prior to a subsequent interest payment date established by notice mailed by the Registrar to the registered owner not less than the tenth day preceding such subsequent interest payment date, such interest shall be payable semiannually of each year, and shall mature in such years and amounts, all as shall be determined by subsequent proceedings of the Commission. In the event any payment of \\wpb-srv01\SANFORDSX399705v05\I 1/25/02\16787 011000 10 Resolution No. 91-02 interest or of interest and principal on the Bonds shall not be paid when due, the amount so in default shall continue to bear interest to the extent permitted by law from the date such payment became due until payment thereof at the rate set forth on the face of each Bond. Such Bonds shall mature in such amounts and at such times not exceeding forty (40) years from the date of issuance of the Refunded Bonds, and shall be payable and registrable at such place or places within or out of the State of Florida as shall hereafter be determined by subsequent proceedings of the Commission. SECTION 6. REDEMPTION PROVISIONS. The Bonds may be subject to redemption prior to maturity at such times, at such redemption prices and upon such terms as shall be determined by subsequent proceedings of the Commission. SECTION 7. EXECUTION OF BONDS. That the Bonds shall be executed in the name of the City by the Mayor, and the official seal of the City shall be affixed thereto or lithographed, impressed, imprinted or otherwise reproduced thereon and attested by the City Clerk, or in such manner as may be permitted by law. The signatures of the Mayor or the City Clerk on the Bonds may be manual or facsimile signature. In case any one or more of the officers who shall have signed or sealed any of the Bonds shall cease to be such officer before the Bonds so signed and sealed have been actually sold and delivered, such Bonds may nevertheless be sold and delivered as herein provided and may be issued as if the person who signed or sealed such Bonds had not ceased to hold such office. Any of the Bonds may be signed and sealed on behalf of the City by such person as at the actual time of execution of such Bonds shall hold the proper office, although at the date of such Bonds such person may not have held such office or may not have been so authorized. \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787 011000 1 1 Resolution No. 91-02 The Bonds shall bear thereon a certificate of registration and authentication, in the form set forth in Section 1 0 hereof, executed manually by the Registrar. Only such Bonds as shall bear thereon such certificate of registration and authentication shall be entitled to any right or benefit under this Resolution and no Bond shall be valid or obligatory for any purpose until such certificate of registration and authentication shall have been duly executed by the Registrar. Such certificate of the Registrar upon any Bond executed on behalf of the City shall be conclusive evidence that the Bond so authenticated has been duly registered and authenticated and delivered under this Resolution and that the holder thereof is entitled to the benefits of this Resolution. SECTION 8. NEGOTIABILITY, REGISTRATION AND CANCELLATION. At the option of the registered holder of any Bond and upon surrender thereof at the designated corporate trust office of the Registrar, with a written instrument of transfer satisfactory to the Registrar duly executed by the registered holder of a Bond or his duly authorized attorney and upon payment by such holder of any charges which the Registrar or the City may make as provided in this Section, the Bonds may be exchanged for Bonds of the same series and maturity of any other authorized denominations. The Registrar shall keep books for the registration of Bonds and for the registration of transfers of Bonds. The Bonds shall be transferable by the registered holder thereof in person or by his attorney duly authorized in writing only upon the books of the City kept by the Registrar and only upon surrender thereof together with a written instrument of transfer satisfactory to the Registrar duly executed by the registered holder or his duly authorized attorney. Upon the transfer of any such Bond, the City shall issue in the name of the transferee a new Bond or Bonds. \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787 0 ! 1000 1 2 Resolution No. 91-02 The City, the Registrar and the Paying Agent shall deem and treat the person in whose name any Bond shall be registered upon the books kept by the Registrar as the absolute holder of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of, premium, if any, and interest on such Bond as the same. become due and for all other purposes. All such payments so made to any such holder or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City, the Registrar nor the Paying Agent shall be affected by any notice to the contrary. In all cases in which the privilege of exchanging Bonds or transferring Bonds is exercised, the City shall execute and the Registrar shall authenticate and deliver Bonds in accordance with the provisions of this Resolution. All Bonds surrendered in any such exchanges or transfers shall forthwith be delivered to the Registrar and cancelled by the Registrar in the manner provided in this Section. There shall be no charge for any such exchange or transfer of Bonds, but the City or the Registrar may require the payment of a sum sufficient to pay any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer. Neither the City nor the Registrar shall be required (a) to transfer or exchange Bonds for a period commencing on the Record Date and ending on the next ensuing interest payment date for such Bonds or 15 days next preceding any selection of Bonds to be redeemed or thereafter until after the mailing of any notice of redemption; or (b) to transfer or exchange any Bonds called for redemption. However, if less than all of a Bond is redeemed or defeased, the City shall execute and the Registrar shall authenticate and deliver, upon the surrender of such Bond, without charge to the Bondholder, for the unpaid balance of the principal amount of such Bond so surrendered, a registered Bond in the appropriate denomination. \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787 011000 1 3 Resolution No. 91-02 All Bonds paid or redeemed, either at or before maturity shall be delivered to the Registrar when such payment or redemption is made, and such Bonds, together with all Bonds that may be purchased by the City, shall thereupon be promptly cancelled. Bonds so cancelled may at any time be destroyed by the Registrar, who shall execute a certificate of destruction in duplicate by the signature of one of its authorized officers describing the Bonds so destroyed, and one executed certificate shall be filed with the City and the other executed certificate shall be retained by the Registrar. SECTION 9. BONDS MUTILATED, DESTROYED, STOLEN OR LOST. In case any Bond shall become mutilated, destroyed, stolen or lost, the City may execute and the Registrar shall authenticate and deliver a new Bond of like date, maturity, denomination and interest rate as the Bond so mutilated, destroyed, stolen or lost; provided that, in the case of any mutilated Bond, such mutilated Bond shall first be surrendered to the City and, in the case of any lost, stolen or destroyed Bond, there shall first be furnished to the City and the Registrar evidence of such loss, theft, or destruction satisfactory to the City and the Registrar, together with indemnity satisfactory to them. In the event any such Bond shall be about to mature or have matured or have been called for redemption, instead of issuing a duplicate Bond, the City may pay the same without surrender thereof. The City and the Registrar may charge the holder of such Bond their reasonable fees and expenses in connection with this transaction. Any Bond surrendered for replacement shall be cancelled in the same manner as provided in Section 8 of this Resolution. Any such duplicate Bonds issued pursuant to this Section shall constitute additional contractual obligations on the part of the City, whether or not the lost, stolen or destroyed Bonds be at any time found by anyone, and such duplicate Bonds shall be entitled to equal and \\wpb-srv01\SANFORDSX399705v05\l 1/25/02\16787 011000 14 Resolution No. 91-02 proportionate benefits and rights as to lien on and source and security for payment with all other Bonds issued hereunder. SECTION 10. FORM OF BONDS. The text of the Bonds shall be of substantially the following tenor, with such omissions, insertions and variations as may be necessary and desirable: ~\wpb-srv01XSANFORDSk399705v05\l 1/25/02\16787 011000 1 5 Resolution No. 91-02 (Face of Bond) No. UNITED STATES OF AMERICA STATE OF FLORIDA PALM BEACH COUNTY CITY OF DELRAY BEACH GENERAL OBLIGATION REFUNDING BOND SERIES 2002 (Decade of Excellence Program) Interest Rate Maturity Date Dated Date CUSIP $ ,000 Registered Owner: Principal Amount: KNOW ALL MEN BY THESE PRESENTS, that City of Delray Beach, Florida, a municipal corporation created and existing under and by virtue of the laws of the State of Florida (the "City"), hereby acknowledges itself to be indebted, and for value received, hereby promises to pay the Registered Owner or registered assigns on the Maturity Date specified above, from the sources hereinafter mentioned, upon the presentation and surrender hereof at the designated corporate trust office of as paying agent (said and any bank or trust company becoming successor paying agent being herein called the "Paying Agent"), the Principal Amount stated above together with interest thereon at the Interest Rate payable on the first day of and of each year commencing Interest on this Bond (except for Holders of at least $1,000,000 in aggregate principal amount of bonds, who may receive payment of interest by wire transfer in \\wpb-srv01\SANFORDS~399705v05\l 1/25/02\16787 011000 1 6 Resolution No. 91-02 the manner provided in the herein referred to Resolution) is payable by check or draft of the Paying Agent made payable to the Registered Owner and mailed to the address of the Registered Owner as such name and address shall appear on the registration books of the City initially maintained by ., as registrar (said and any bank or trust company becoming successor registrar being herein called the "Registrar") at the close of business on the fifteenth day of the calendar month preceding each interest payment date or the date on which the principal of a Bond is to paid (the "Record Date"); provided, however, that if and to the extent there is a default in the payment of the interest due on such interest payment date, such defaulted interest shall be paid to the persons in whose name Bonds are registered on the registration books of the City maintained by the Registrar at the close of business on the fifteenth day prior to a subsequent interest payment date established by notice mailed by the Registrar to the registered owner not less than the tenth day preceding such subsequent interest payment date. Such, interest shall be payable from the most recent interest payment date next preceding the date of registration to which interest has been paid, unless the date of registration is an 1 or 1 to' which interest has been paid, in which case from the date of registration, or unless the date of registration is prior to ,2002, in which case from ., 2002, or unless the date of registration is between a Record Date and the next succeeding interest payment date, in which case from such interest payment date. The Principal Amount and accrued interest thereon is payable in any coin or currency of the United States of America, which, on the date of payment thereof, shall be legal tender for the payment of public and private debts. This bond is one of an issue of bonds in the aggregate principal amount of not exceeding $ , of like date, tenor and amount, except as to the number, date of maturity and \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787 011000 1 7 Resolution No. 9 1-02 interest rate, issued by Delray Beach, Florida, for the purpose of paying and defeasing all or a portion of the City's General Obligation Bonds, Series 1993 A (Decade of Excellence Program) and the City's General Obligation Refunding Bonds, Series 1993 B (Decade of Excellence Program), under the authority of and in full compliance with the Constitution and statutes of the State of Florida, including Chapter 166, Florida Statutes, as amended and supplemented, the City Charter of Delray Beach, as amended and supplemented, and other applicable provisions of law and pursuant to a resolution (the "Resolution") duly adopted by the City Commission of Delray Beach, Florida, authorizing the issuance of the bonds. Reference is hereby made to the further provisions of this bond set forth on the reverse side hereof and such further provisions shall for all other purposes have the same effect as if set forth on the front side hereof. It is hereby certified and recited that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this bond, exist, have happened and have been performed in regular and due form and time as required by the laws and Constitution of the State of Florida applicable thereto, and that the issuance of this bond and of the bonds of the issue of which this bond is one does not violate any constitutional or statutory debt limitation or provision; that due provision has been made for the levy and collection of a direct annual tax in addition to all other taxes, upon all the taxable property within the City sufficient to pay the principal of and interest on safd bonds as the same shall mature and become due, and that the full faith and credit of Delray Beach, Florida, are hereby irrevocably pledged for the punctual payment of the principal of and interest on this bond, as the same shall become due and payable. \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787 011000 1 8 Resolution No. 91-02 IN WITNESS WHEREOF, Delray Beach, a municipal corporation of the State of Florida, has caused this bond to be signed by its Mayor either manually or with his facsimile signature, and the seal of said City or a facsimile thereof, to be affixed hereto, or lithographed, impressed, imprinted or otherwise reproduced hereon, attested by the City Clerk of said City- either manually or with her facsimile signature, all as of the Dated Date. (SEAL) CITY OF DELRAY BEACH, FLORIDA ATTEST: Mawr City Clerk \\wpb-srv01\SANFORDSk399705v05\l 1/25/02\16787 011000 1 9 Resolution No. 91-02 (FORM OF CERTIFICATE OF REGISTRATION AND AUTHENTICATION) This bond is one of the bonds delivered pursuant to the within mentioned Resolution of the City Commission of Delray Beach, Florida. Date of Authentication: as Registrar By: Authorized Officer \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787 01 I000 20 Resolution No. 91-02 (Back of Bond) (Insert Applicable Redemption Provisions) The original registered owner, and each successive registered owner of this bond shall be conclusively deemed to have agreed and consented to the following terms and conditions: (1) The Registrar shall keep books for the registration of bonds and for the registration of transfers of bonds as provided in the Resolution. The bonds shall be transferable by the registered owner thereof in person or by his attorney duly authorized in writing only upon the books of the City kept by the Registrar and only upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar duly executed by the registered owner or his duly authorized attorney. Upon the transfer of any such bond, the City shall issue in the name of the transferee a new bond or bonds. (2) The City, the Paying Agent and the Registrar shall deem and treat the person in whose name any bond shall be registered upon the books kept by the Registrar as the absolute owner of such bond, whether such bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such bond as the same becomes due, and for all other purposes. All such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid, and neither the City, the Paying Agent, nor the Registrar shall be affected by any notice to the contrary. (3) At the option of the registered owner thereof and upon surrender hereof at the designated corporate trust office of the Registrar with a written instrument of transfer satisfactory to the Registrar duly executed by the registered owner or his duly authorized attorney and upon payment by such registered owner of any charges which the Registrar or the City may make as \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787 011000 2 1 Resolution No. 91-02 provided in the Resolution, the bonds may be exchanged for bonds of the same series and maturity of any other authorized denominations. (4) In all cases in which the privilege of exchanging bonds or transferring bonds is exercised, the City shall execute and the Registrar shall authenticate and deliver bonds in accordance with the provisions of the Resolution. There shall be no charge for any such exchange or transfer of bonds, but the City or the Registrar may require payment of a sum sufficient to pay any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer. Neither the City nor the Registrar shall be required (a) to transfer or exchange bonds for a period commencing on a Record Date and ending on the next ensuing interest payment date for such bonds or 15 days next preceding any selection of bonds to be redeemed or thereafter until after the mailing of any notice of redemption; or (b) to transfer or exchange any bonds called for redemption. However, if less than all of a Bond is redeemed or defeased, the City shall execute and the Registrar shall authenticate and deliver, upon the surrender of such Bond, without charge to the Bondholder, for the unpaid balance of the principal amount of such Bond so surrendered, a registered Bond in the appropriate denomination. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the certificate of registration and authentication hereon shall have been signed by an authorized officer of the Registrar. \\wpb-srv01~SANFORDS~399705v05\l 1/25/02\16787 0110(K} 22 Resolution No. 91-02 ASSIGNMENT AND TRANSFER FOR VALUE RECEIVED the undersigned sells; assigns and transfers unto (please print or typewrite name and address of transferee) the within bond and all fights thereunder, and hereby irrevocably constitutes and appoints Attorney to transfer the within' bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: In the presence off \\wpb-srv01\SANFORDS~399705v05\l 1/25/02\16787 011000 23 Resolution No. 91-02 SECTION 11. APPLICATION OF BOND PROCEEDS. The accrued interest derived from the sale of the Bonds, if any, shall be deposited in the Interest Account, hereinafter created and established and used for the purpose of paying the interest on the Bonds as the same becomes due and payable. From the proceeds of the sale of the Bonds an amount which together with any other moneys lawfully available therefor, if any, shall be deposited in one or more escrow deposit trust funds to be held by a bank or trust company, as trustee and escrow agent, under the terms and provisions of the Escrow Deposit Agreement and such proceeds shall be held irrevocably in trust in such escrow deposit trust fund(s) under the terms and provisions of the Escrow Deposit Agreement; such moneys (except for any open cash balances) shall be invested at the time of deposit in U. S. Obligations, which U. S. Obligations and all investment earnings thereon, together with such cash balances, shall provide moneys which will be sufficient to pay the Refunded Bonds in the manner provided-in the resolutions authorizing the issuance of the Refunded Bonds and the Escrow Deposit Agreement. The remaining proceeds of such sale shall be deposited in a Costs of Issuance Cost Account, hereby created and established, to be held by the City and used for the purpose of paying any legal expenses, expenses for fiscal agents or financial services, the costs associated with the purchase and subsequent management of the U.S. Obligations, expenses in connection with the performance of the duties of the escrow agent under the provisions of the Escrow Deposit Agreement and such other expenses as may be necessary or incidental and incurred by the City in connection with the issuance of the Bonds. The proceeds of the sale of the Bonds (other than amounts deposited in the Escrow Deposit Agreement) shall be and constitute trust funds for the purposes hereinabove provided \\wpb-srv01\SANFORDS~399705~05\I 1/25/02\16787 011000 24 Resolution No. 91-02 and there is hereby created a lien upon such moneys, until so applied, in favor of the Holders of said Bonds. SECTION 12. SECURITY FOR THE BONDS. That in each year while any of the Bonds are outstanding and unpaid, there shall be levied and collected a tax on all the taxable property within the City sufficient to pay the interest on the Bonds as it becomes due, and to provide for the payment of the principal and redemption premium, if any, of said Bonds at their maturity or earlier redemption, and the City is, and shall be irrevocably and unconditionally obligated to levy and collect such ad valorem taxes without limitation as to rate or amount on all the taxable property within the City, sufficient in amount to pay all principal of, redemption premium, if any, and interest on said Bonds, as the same shall become due. SECTION 13. COVENANTS OF THE CITY. As long as any of the principal of or interest on any of the Bonds shall be Outstanding and unpaid, or until there shall have been set apart in the Sinking Fund, consisting of the Interest Account and Principal Account, herein created and established, a sum sufficient to pay, when due, the entire principal of the Bonds remaining unpaid, together with interest accrued and to accrue thereon, or until the provisions of Section 13.D of this Resolution have been complied with, the City covenants with the Holders of any and all of the Bonds issued pursuant to the Resolution as follows: A. TAX COVENANT. 1. The City covenants to comply with each requirement of the Code, and any successor provisions thereto, necessary to maintain the exclusion of the interest on the Bonds from gross income for Federal income tax purposes pursuant to Section 103(a) of the Code. In furtherance of the covenant contained in the preceding sentence, the City agrees to comply with the provisions of the Tax Certificate. , \\wpb-srv01\SANFORDSX399705v05\l 1/25/02\16787 011000 25 Resolution No. 91-02 2. The City shall make any and all payments required to be made to the United States Department of the Treasury in connection with the Bonds pursuant to Section 148(0 of the Code from amounts on deposit in the fund and accounts established under this Resolution and available therefor. 3. Notwithstanding any other provision of this Resolution to the contrary, as long as necessary in order to maintain the exclusion of interest on the Bonds from gross income for federal income tax purposes, the covenants contained in this Section shall survive the payment of the Bonds, including any payment or defeasance thereof pursuant to Section 13.D bf this Resolution. B. AD VALOREM TAX. In each year, while any of the Bonds are outstanding and unpaid, the City covenants that there shall be levied and collected a tax on all the taxable property within the City sufficient to pay the interest on the Bonds as it becomes due, and to provide for the payment of the principal of said Bonds and redemption premium, if any, when due and payable, and the City is, and shall be irrevocably and unconditionally obligated to levy and collect such ad valorem taxes without limitation as to rate or amount on all the taxable property within the City, sufficient in amount to pay all principal of and redemption premium, if any, and interest on said Bonds as the same shall become due and payable. C. CREATION AND ESTABLISHMENT OF A SINKING FUND AND VARIOUS ACCOUNTS AND THE DISPOSITION OF MONEYS. There are hereby created and established the following fund and accounts: THE "SINKING FUND" All of the moneys raised by the City from the ad valorem taxes on the taxable property within the City for the purpose of paying the principal of and redemption premium, if any, and \[wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787 011000 26 Resolution No. 91-02 interest on the Bonds herein authorized shall be deposited by the City in a special fund to be known as the "Sinking Fund" which is hereby created and established. The moneys in said Sinking Fund shall be used solely for the payment of the principal of and redemption premium, if any, and interest on said Bonds as the same become due and payable and the registered owners of said Bonds shall have a first lien on all such moneys in the Sinking Fund until paid and applied in the manner permitted in this Resolution. There are also hereby created and established two (2) separate accounts in the Sinking Fund to be known as the "Interest Account" and the "Principal Account." The moneys at any time on deposit in the Sinking Fund disposed of only in the following manner: 1. Moneys shall first be used; to the full extent necessary, for deposit into the Interest Account in the Sinking Fund to pay interest becoming due on the Bonds 'on the next semiannual interest payment date; provided, however, that deposits for interest shall not be required to be made into the Interest Account to the extent that money on deposit therein is sufficient for such purpose. 2. Moneys shall next be used, to the full extent necessary, for deposit into the Principal Account in the Sinking Fund to provide for the required principal amount maturing and becoming due on the next principal payment date; provided, however, that deposits for principal shall not be required to be made into the Principal Account to the extent that money on deposit therein is sufficient for such purpose. The City shall, to the extent of any moneys in any term Bond subaccount within the Principal Account, be mandatorily obligated to use such moneys for the redemption \Xwpb-srv01\SANFORDS\399705v05\I 1/25/02\16787 011000 27 Resolution No. 91-02 discharged and extinguished, and the Holders thereof shall be entitled for payment solely out of the moneys or securities so deposited. Notwithstanding the foregoing, in the event that the payment or deposit in the mount and manner provided in this Resolution has been made by the Bond Insurer, if any, under the terms of a Bond Insurance Policy, the Bond Insurer shall be subrogated to the rights of the Holders of the Bonds, and the liability of the City, with respect thereto, shall not be discharged or extinguished. Notwithstanding any provisions contained in this Section 13.D to the contrary, the City may, with an opinion of nationally recognized bond counsel, purchase such Bonds that have been deemed discharged and satisfied within the meaning of this Section 13.D and thereby be permitted to use such excess moneys, resulting from such purchase, free and clear of any trust, lien, security interest, pledge or assignment securing said Bonds. SECTION 14. RULE 15C2-12 UNDERTAKING. That in order to assist the initial purchasers of the Bonds with respect to compliance with the Rule, the City undertakes and agrees to provide the information described below to the persons so indicated. The City's Undertaking set forth in this Section 14 shall be for the benefit of the registered owners and Beneficial Owners of the Bonds. A. The City undertakes and agrees to provide to each NRMSIR and to the State of Florida information depository (herein, the "SID") if and when such a SID is created (i) the City's general purpose financial statements generally consistent with the financial statements presented in Appendix B to the official statement relating to the Bonds (herein the "Official Statement"), and (ii) the information concerning the ad valorem tax collections within the City generally consistent with the information set forth in the Official Statement under the heading \\wpb-srv01~SANFORDS\399705v05\! 1/25/02\16787 011000 30 Resolution No. 91-02 "SECURITY FOR THE SERIES 2002 BONDS." The information referred to in clauses (i) and (ii) is herein collectively referred to as the "Annual Information." B. The Annual Information described in clause (i) of paragraph A above in audited form (for as long as the City provides such financial information in audited form) is expected to be available on or before March 31 of each year for the Fiscal Year ending on the preceding September 30, commencing March 31, 2003 for the Fiscal Year ending on the preceding September 30, 2002. The Annual Information referred to in clause (i) of paragraph A above in unaudited form (if the audited financial statements are not available or if the City no longer provides such financial information in audited form) will be available on or before March 31 for the Fiscal Year ending on the preceding September 30. The City also agrees to provide the Annual Information to each registered owner and Beneficial Owner of the Bonds who request such information and pays to the City its costs of reproduction and transmission of such Annual Information. The City agrees to provide to each NRMSIR and the SID, if any, timely notice of its failure to provide the Annual Information. Such notice shall also indicate the reason for such failure and when the City reasonably expects such Annual Information will be available. C. The Annual Information referred to in clause (i) of paragraph A above and presented as an appendix to the Official Statement has been prepared in accordance with governmental accounting standards promulgated by the Government Accounting Standards Board, as in effect from time to time, as such principles are modified by generally accepted accounting principles, promulgated by the Financial Accounting Standards Board, as in effect from time to time, and such other State mandated accounting principles as in effect from time to time. \\wpb-srv01\SANFORDS\399705v05\l 1/2S/02\16787 011000 3 1 Resolution No. 91-02 D. If, as authorized by paragraph F below, the City's undertaking with respect to paragraph C above requires amending, the City undertakes and agrees that the Annual Information described in clause (i) of paragraph A above for the Fiscal Year in which the amendment is made will, to the extent possible, present a comparison between the Annual Information prepared on the basis of the new accounting principles and the Annual Information prepared on the basis of the accounting principles described in paragraph C above. The City agrees that such a comparison will, to the extent possible, include a qualitative discussion of the differences in the accounting principles and the impact of the change on the presentation of the Annual Information. E. The City undertakes and agrees to provide, in a timely manner, to each NRMSIR or to the Municipal Securities Rulemaking Board and to the SID, if any, notice of the occurrence of any of the following events with respect to the Bonds, if material: 2. 3. 4. o o principal and interest payment delinquencies; non-payment related defaults; unscheduled draws on any reserve account reflecting financial difficulties; unscheduled draws on credit enhancements reflecting financial difficulties; substitution of credit or liquidity providers, or their failure to perform; adverse tax opinions or events affecting the tax-exempt status of the Bonds; modifications to rights of Bondholders; Bond calls (other than scheduled mandatory sinking fund redemptions); defeasance of the Bonds; \\wpb-srv01\SANFORDS~399705v05\l 1/25/02\16787 011000 32 Resolution No. 91-02 10. release, substitution, or sale of property securing repayment of the Bonds; 11. rating changes; and 12. any failure to comply with the provisions of this Section 14, which in all cases, such failure will be deemed material. Notwithstanding the foregoing, notice of the events described in clauses (8) and (9) above need not be given any earlier than the time notice is required to be given to the registered owners of the Bonds. F. Notwithstanding any other provision of this Resolution or the Bond Resolution to the contrary regarding amendments or supplements, the City undertakes and agrees to amend and/or supplement this Section 14 (including the amendments referred to in paragraph D above) only if: 1. The amendment or supplement is made only in connection with a change in circumstances existing at the time the Bonds were originally issued that arises from (i) a change in law, (ii) SEC pronouncements or interpretations, (iii) a judicial decision affecting the Rule or (iv) a change in the nature of the City's financial condition. 2. The City's Undertaking, as amended, would have complied with the requirements of the Rule at the time the Bonds were originally issued after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and 3. The amendment or supplement does not materially impair the interests of the registered owners and Beneficial Owners of the Bonds as determined by Bond Counsel or by a majority of the registered owners of the Bonds. \\wpb-srv01\SANFORDS~399705v05\l 1/25/02\16787 011000 33 Resolution No. 91-02 In the event of an amendment or supplement under this Section 14, the City shall describe the same in the next report of Annual Information and shall include, as applicable, a narrative explanation of the reason for the amendment or supplement and its impact, if any, on the financial information and operating data being presented in the Annual Information. G. The City's Undertaking as set forth in this Section 14 shall terminate if and when the Bonds are paid or deemed paid within the meaning of this Resolution. H. The City acknowledges that its Undertaking pursuant to the Rule set forth in this Section 14 is intended to be for the benefit of the registered holders and Beneficial Owners of the Bonds and shall be enforceable by such holders and Beneficial Owners; provided that, the holder's and Beneficial Owners' right to enforce the provisions of this Undertaking shall be limited to a fight to obtain specific enforcement of the City's obligations hereunder, and any failure by the City to comply with the provisions of this Undertaking shall not be or constitute a covenant or monetary default with respect to the Bonds under this Resolution. I. The City reserves the right to satisfy its obligations under this Section 6 through agents; and the City may appoint such agents without the necessity of amending this Resolution. The City may also appoint one or more employees of the City to monitor and be responsible for the City's Undertaking hereunder. SECTION 15. MODIFICATION OR AMENDMENT. Except as otherwise provided in the second paragraph hereof, no material modification or amendment of this Resolution, or of any resolution amendatory thereof or supplemental thereto, may be made without the consent in writing of the Holders of two-thirds or more in principal amount of the Bonds then Outstanding; provided, however, that no modification or amendment shall permit a change in the maturity of such Bonds or a reduction in the rate of interest thereon, or affecting the unconditional promise \\wpb-srvOl\SANFORDS\399705v05\l 1/25/02\16787 011000 34 Resolution No. 91-02 of the City to levy, assess and collect an ad valorem tax without limitation as to rate or mount upon all taxable property in the City or to pay the interest of and principal on the Bonds, as the same mature or become due, from said ad valorem tax, or reduce the percentage of Holders of Bonds required above for such modification or amendments, without the consent of the Holders of all the Bonds. This Resolution may be amended, changed, modified and altered without the consent of the Holders of Bonds, (i) to cure any ambiguity, correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions contained herein, (ii) to implement a book-entry system of registration, (iii) to provide other changes which will not adversely affect the interest of such Holders of Bonds, or (iv) to amended the Undertaking pursuant to Section 14 hereof. For purposes of this Section 15, to the extent the Bonds are insured by a Bond Insurance Policy and such Bonds are then rated in as high a rating category in which such Bonds were rated at the time of initial issuance and delivery thereof, by both Standard & Poor's and Moody's Investors Service, Inc., then the consent of the Bond Insurer may constitute the consent of the Holders of the Bonds, provided such Bond Insurer agrees to give consent under such circumstances and is not in default under the Bond Insurance Policy. SECTION 1 6. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions of this Resolution should be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separate from the \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787 011000 35 Resolution No. 91-02 remaining covenants, agreements or provisions, and shall in no way affect the validity of any of the other provisions of the Resolution or of the Bonds or coupons issued hereunder. SECTION 17. SALE OF BONDS. The Bonds shall be issued and sold at one time or from time to time, in such manner and at such price or prices consistent with the provisions of the Act and the requirements of the Commission as shall hereafter be determined by subsequent proceedings. SECTION 18. REMEDIES. Any Bondholder, to the full extent permitted by the laws of the State of Florida or the United States of America, may sue to protect and enforce any and all legal rights; to seek the appointment of a receiver, and to enforce and compel the performance of all duties required by this Resolution. SECTION 19. EFFECTIVE DATE. This Resolution shall take effect upon the passage in the manner provided by law. Passed and adopted in regular session this 3rd day of December, 2002. (SEAL) CITY OF DELRAY BEACH, FLORIDA ATTEST: By: City Clerk The foregoing Resolution and bond form is hereby approved by me as to form, language and execution, this 3rd day of December, 2002. By: City Attorney \\wpb-srv01\SANFORDS\399705v05\l 1/25/02\16787 011000 36 Resolution No. 91-02 NO. 92-02 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZING THE NEGOTIATED SALE OF CITY OF DELRAY BEACH, FLORIDA, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2002 (DECADE OF EXCELLENCE PROGRAM), IN THE INITIAL AGGREGATE PRINCIPAL AMOUNT OF NOT EXCEEDING $18,000,000; PROVIDING THE PARAMETERS BY WHICH THE FINAL TERMS AND OTHER DETAILS OF SUCH 2002 BONDS WILL BE ESTABLISHED, APPOINTING THE UNDERWRITER OF THE 2002 BONDS; APPROVING THE FORM OF AND DELEGATING TO THE MAYOR OR VICE MAYOR THE AUTHORITY TO EXECUTE AND DELIVER A PURCHASE CONTRACT TO BE USED FOR THE SALE OF THE 2002 BONDS; APPOINTING A PAYING AGENT AND BOND REGISTRAR; APPOINTING AN ESCROW AGENT; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT; AUTHORIZING THE REGISTRATION OF THE 2002 BONDS UNDER A BOOK-ENTRY SYSTEM; APPROVING THE FORM OF A PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN OFFICIAL STATEMENT RELATING TO THE 2002 BONDS; AUTHORIZING THE USE BY THE UNDERWRITER OF THE PRELIMINARY OFFICIAL STATEMENT AND OFFICIAL STATEMENT RELATING TO THE 2002 BONDS; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PAYING AGENT AND REGISTRAR AGREEMENT RELATING TO THE BONDS; PROVIDING FOR A BOND INSURANCE POLICY FOR THE BONDS PROVIDED BY FINANCIAL SECURITY ASSURANCE, INC.; AUTHORIZING THE PROPER OFFICERS OF THE CITY TO DO ALL OTHER THINGS DEEMED NECESSARY OR ADVISABLE AS TO THE SALE AND DELIVERY OF THE BONDS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Commission did, on this date, adopt Resolution No. 91-02 (the "Authorizing Resolution") authorizing the issuance of not exceeding $18,000,000 in initial aggregate principal amount of General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) (the "Bonds"), for the purpose of paying and refunding the Refunded Bonds; and WHEREAS, any term not otherwise defined in this Resolution shall have the meaning ascribed to such term in the Authorizing Resolution; and \\wpb-srv01 ~SANFORDS~399665v08\l 1/26/02\16787 011000 Resolution No. 92-02 WHEREAS, the City hereby determines the parameters by which the final terms and other details of the Bonds are to be established; and WHEREAS, Bear Steams & Co., Inc. (the "Underwriter"), plans to submit to the City a proposal within the parameters hereby determined in the form of a Bond Purchase Agreement (the "Purchase Contract"), attached hereto as Exhibit A, between the Underwriter and the City to purchase the Bonds, a copy of which is hereby furnished to each of the City Commissioners; and WHEREAS, there have been also prepared and submitted to the City: (a) a draft of the Preliminary Official Statement, attached hereto as Exhibit B; (b) an Escrow Deposit Agreement (the "Escrow Deposit Agreement"), attached hereto as Exhibit C; and WHEREAS, the City's financial advisor has recommended the negotiated sale of the Bonds in a letter attached hereto as Exhibit D; and WHEREAS, based on the advice of the City's financial advisor, it is in the best interest of the City to delegate to the Mayor or Vice Mayor the authority to execute and deliver the Bond Purchase Contract if the final terms and other details of the Bonds are within the parameters set forth in this Resolution and to award the Bonds to the Underwriter pursuant to a negotiated sale; and WHEREAS, the City's financial advisor has recommended in a letter, attached hereto as Exhibit D, that the principal and interest on the Bonds be insured by a municipal bond insurance policy (the "Bond Insurance Policy") to be issued by Financial Security Assurance, Inc. (the "Bond Insurer") pursuant to the terms and provisions of the commitment of such Bond Insurer to provide the Bond Insurance Policy attached hereto as Exhibit E (herein, the "Commitment"); and \\wpb-$rv01\SANFORDS~399665v08\I 1/26/02\16787 011000 2 Resolution No. 92-02 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: SECTION 1. Definitions. That all capitalized terms used in this Resolution not otherwise defined shall have the meanings ascribed to such terms in the Authorizing Resolutions, as the case may be, unless the context clearly indicates otherwise. SECTION 2. Purpose and Bond Designations. That, subject to receipt of a final offer from the Underwriter within the parameters set forth herein, the City hereby authorizes and determines at this time (i) to issue its not to exceed $18,000,000 in initial aggregate principal amount of its Bonds for the purpose of paying and defeasing the Refunded Bonds, (ii) to pay the costs of issuance of the Bonds, including paying the premium for the Bond Insurance Policy, and (iii) to designate such Bonds, as its "General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) (herein, the "Bonds"). SECTION 3. DESCRIPTION OF TIlE BONDS. The Bonds shall be dated the first day of the month the Bonds are issued or such other date, as shall be determined by the City's financial advisor, to be in the best interest of the City, shall bear interest, payable on February 1, 2003, and semiannually thereafter on August 1 and February 1 of each year, and shall mature on February 1 of each of the years determined by the Underwriter within the parameters set forth in this Resolution and in the amounts and at the rates so determined by the Underwriter; provided that the initial aggregate principal amount of the Bonds does not exceed $18,000,000 and the true interest cost for the Bonds does not exceed five percent (5%). The Bonds may be either serial Bonds or term Bonds or a combination thereof, provided that the last maturity of the Bonds is not later than February 1, 2013. ~\wpb-$rv01~ANFORDS~399665v08\l 1/26/02\16787 011000 3 Resolution No. 92-02 The Bonds maturing on February 1, 2012, and thereafter are redeemable at the option of the City from any legally available source, in part, in any order of maturity selected by the City, at its discretion, and by lot within a maturity if less than an entire maturity is to be redeemed, on February 1, 2011, or at any time thereafter, or as a whole, on February 1, 2011, or at any time thereafter, in either case, at the redemption prices (expressed as percentages of the principal amount to be redeemed) set forth below, together with accrued interest to the date fixed for redemption: Redemption Period (Both dates inclusive) February 1, 2011 to January 31, 2012 February 1, 2012 and thereafter Redemption Price 101% 100% Notwithstanding the foregoing, if the City's Underwriter, upon consultation with the Finance Director of the City, determines that market conditions require different or no optional redemption provisions for the Bonds or for certain maturities of the Bonds, such different optional redemption provisions or the exclusion of certain or all maturities of the Bonds from such optional redemption provisions will be deemed approved by the City upon the execution of the Purchase Contract so long as the maximum redemption premium does not exceed 2% and the first optional redemption period is not more than eleven (11) years from the date of issuance of the Bonds. That the Bonds which are term Bonds shall also be subject to mandatory sinking fund redemption prior to maturity by lot, in such manner as the Registrar (as defined herein) may deem appropriate, on February 1, in such years, at a price of par plus accrued interest to the date of redemption, in the annual amounts established pursuant to the parameter set forth in Section 6 hereof. XXW~-,rv0,~S^N~O~S~665,08X,,/:~02~,67*70~,000 4 Resolution No. 92-02 Notice of redemption of the Bonds shall be mailed, postage prepaid, by the Registrar not less than thirty (30) days before the date fixed for redemption to the registered owners of the Bonds or portions of Bonds which are to be redeemed, at their addresses as they appear on the registration books kept by the Registrar fifteen (15) days prior to the date such notice is mailed. Such notice of redemption shall set forth (i) the date fixed for redemption, (ii) the redemption price to be paid, (iii) that such Bonds will be redeemed at the designated corporate trust office of the Paying Agent (as herein defined), and the name, address and telephone number of a contact person, (iv) if less than all of the Bonds shall be called for redemption, the distinctive numbers and letters, if any, of such Bonds to be redeemed, and (v) in the case of Bonds to be redeemed in part only, the portion of the principal amount thereof to be redeemed. In case any Bond is to be redeemed in part only, the notice of redemption that relates to such Bond shall state also that on or after the redemption date, upon surrender of such Bond, a new Bond or Bonds of the same maturity, bearing interest at the same rate and in aggregate principal amount, equal to the unredeemed portion of such Bond, will be issued. Failure of the registered owner of any Bonds which are to be redeemed to receive any such notice shall not affect the validity of the proceedings for the redemption of Bonds for which proper notice has been given. Interest shall cease to accrue on any of the Bonds duly called for prior redemption if payment of the redemption price has been duly made or provided for. The Registrar also shall mail (by certified mail, return receipt requested) a copy of such notice for receipt not less than the second Business Day prior to the date the notice of redemption is mailed to the registered Holders of the Bonds to the following (or most current address): The Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530, Fax (516) 227- 4039 or such other securities depository designated by the City; provided, however, that such \\wpb-srv0BSANFORDS~399665v05\l 1/26/02\16787 011000 5 Resolution No. 92-02 mailing shall not be a condition precedent to such redemption and failure to mail any such notice shall not affect the validity of any proceedings for the redemption of the Bonds. The Registrar shall also provide notice, at the same time notice of redemption is given to the Bondholders, to any two (2) informational services; provided, however, that such mailing shall not be a condition precedent to such redemption and failure to mail any such notice shall not affect the validity of any proceedings for the redemption of the Bonds. A second notice of redemption shall be given sixty (60) days after the redemption date in the manner required above to the registered owners of redeemed Bonds which have not been presented for payment within thirty (30) days after the redemption date. SECTION 4. DISCLOSURE STATEMENTS. That delivery of the completed required disclosures and truth in bonding statements in substantially the form attached to the Purchase Contract, by the Underwriter pursuant to Section 218.385, Florida Statutes, as amended and supplemented, shall be a condition precedent to the execution of the Purchase Contract by the Mayor. SECTION $. NEGOTIATED SALE. That the Commission hereby adopts the recommendations of the City's financial advisor, as described in a letter from the City's financial advisor, dated the date of this Resolution and attached hereto as Exhibit D. The City hereby finds that, due to the complicated nature of the financing and volatile market conditions, it would be in the best interest of the City that the Bonds be sold on a negotiated basis. SECTION 6. UNDERWRITER; PURCHASE CONTRACT; AND PARAMETERS. That the Underwriter is hereby appointed the exclusive underwriter to sell the Bonds on behalf of the City. The form of Purchase Contract for the Bonds, between the City and the Underwriter, as submitted to this meeting by the Underwriter and attached hereto as Exhibit \\wpb-srv01\SANFORDSX399665v01t\I 1/26/02\16787 011000 6 Resolution No. 92-02 A, be and the same hereby is approved. Subject to the parameters set forth below, the City hereby delegates to the Mayor or the Vice Mayor, in the absence of the Mayor, the authority to approve the final terms and details of the Bonds and to execute the Purchase Contract on behalf of the City if such Purchase Contract accurately reflects such terms and details. Provided, however, that neither the Mayor nor the Vice Mayor shall take any action pursuant to this Section 6 unless the Mayor or the Vice Mayor and the City's financial advisor shall have received from the Underwriter such information as the City Manager and the City's financial advisor shall deem necessary in order to demonstrate that (i) the initial principal amount of the Bonds is not in excess of $18,000,000, (ii) the true interest cost rate of the Bonds is not more than five pement (5%), (iii) the final maturity of the Bonds is not later than February 1, 2013, (iv) the underwriting discount (exclusive of any original issue discount or original issue premium) is not greater than $6.00 per $1,000 of the original principal amount of the Bonds, (v) the completed disclosures required pursuant to Section 218.385, Florida Statutes have been delivered by the Underwriter and (vi) the net present value savings for paying and defeasing the Refunded Bonds shall not be less than three percent (3%). SECTION 7. PRELIMINARY AND OFFICIAL STATEMENT. That the draft Preliminary Official Statement in substantially the form attached hereto as Exhibit B with such changes as shall be approved by the Mayor or the City Manager and the City's Bond Counsel, be and the same is hereby approved, and the City hereby approves the use by the Underwriter of the Preliminary Official Statement in connection with the marketing of the Bonds. The City hereby approves the form of an Official Statement which shall be in substantially the same form as the Preliminary Official Statement but shall contain no permitted omissions. The City hereby approves the use by the Underwriter of the final printed Official Statement in connection with \\wpb-srvOl\SANFORDS~399665v08\l 1/26/02\16787 011000 7 Resolution No. 92-02 the offering and sale of the Bonds and the City hereby further approves the use by the Underwriter of any supplement or amendment to the Official Statement which is necessary so that the Official Statement does not include any untrue statement of a material fact and does not omit to state any material fact necessary to make the statements therein not misleading. The Mayor (or, in his absence, the Vice Mayor) and the City Manager are each hereby authorized and directed to execute the Official Statement and any amendment or supplement thereto, in the name and on behalf of the City, and thereupon to cause the Official Statement and any such amendment or supplement to be delivered to the Underwriter with such approval to be conclusively evidenced by the execution and delivery thereof by the City. SECTION 8. BOOK ENTRY 2002 BONDS. That the City hereby determines that the registration of the Bonds be by the book entry system of registration provided by the Depository Trust Company. SECTION 9. ESCROW AGENT. That the City hereby appoints Wells Fargo Bank, National Association, as escrow agent (the "Escrow Agent") under the Escrow Deposit Agreement (as herein defined). SECTION 10. ESCROW DEPOSIT AGREEMENT. That the form, terms and provisions of the Escrow Deposit Agreement, attached hereto as Exhibit C, between the City and the Escrow Agent (the "Escrow Deposit Agreement"), as submitted to this meeting, be and the same are hereby approved and accepted. The Mayor of the City or, in his absence, the Vice Mayor each is hereby authorized and directed to execute and deliver the Escrow Deposit Agreement in substantially the form submitted to this meeting, with such changes, insertions and deletions thereto as are necessary or desirable for carrying out the purposes thereof as may be approved by the Mayor of the City or the Vice Mayor, upon advice of the City Attorney and \\wpb-srvOl~SANFOKDS~399665v08\l 1/26/02\16787 011000 8 Resolution No. 92-02 Bond Counsel, the execution of said Escrow Deposit Agreement being conclusive evidence of such approval. The City Clerk is hereby authorized and directed to affix the seal of the City and attest to the same, if so required by the terms thereof. SECTION 11. PAYING AGENT AND REGISTRAR. That Wells Fargo Bank, National Association, is hereby appointed as paying agent (the "Paying Agent") and registrar (the "Registrar") for the Bonds. SECTION 12. BOND INSURANCE POLICY. That, based on the recommendations of the City's financial advisor, set forth in a letter attached hereto as Exhibit D with respect to the Bonds, the City Commission finds that obtaining the Bond Insurance Policy provided by the Bond Insurer is in the best interests of the City, and the City Commission hereby directs that the premium due on the Bond Insurance Policy be paid in accordance with the terms thereof. To the extent not reflected in the Authorizing Resolution and this Resolution, the terms and provisions of the Commitment from Financial Security Assurance, Inc. to provide the Bond Insurance Policy attached hereto as Exhibit E are accepted and incorporated herein as though such terms and provisions were set forth herein. SECTION 13. FURTHER AUTHORIZATIONS; RATIFICATION OF PRIOR ACTS. That the Mayor, the Vice Mayor, the City Manager, the Finance Director, the Treasurer, the City Attorney, and any other proper official of the City, be and each of them is hereby authorized and directed to execute and deliver any and all documents and instruments, including, but not limited to, any paying agent and registrar agreement, and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by this Resolution, including, but not limited to, complying with any conditions to obtain the Bond Insurance Policy. All actions heretofore taken and documents prepared or executed by or on \\wpb-srv01\SANFORDSX399665v08\I 1/26/02\16787 011000 9 Resolution No. 92-02 behalf of the City by any of its authorized officers in connection with the transactions contemplated hereby including, without limitation, the subscription for the purchase of United States Treasury Obligations - State and Local Government Series ("SLGs") for deposit and application to effect the payment and defeasance of the Refunded Bonds, are hereby ratified, confirmed, approved and adopted. SECTION 14. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions of this Resolution should be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or provisions, and shall in no way affect the validity of any of the other provisions of this Resolution or of the Bonds. SECTION 15. REPEALER. That all resolutions or proceedings, or parts thereof, in conflict with the provisions of this Resolution are to the extent of such conflict hereby repealed. SECTION 16. EFFECTIVE DATE. That this Resolution shall take effect immediately upon its passage. \\wpl>-srv01kSANFORDSk399665v08\l 1/26/02\16787 011000 10 Resolution No. 92-02 PASSED AND ADOPTED in regular session on this the 3rd day of December, 2002. CITY OF DELRAY BEACH, FLORIDA Attest: By: Mayor City Clerk Date of Adoption: December 3, 2002 The foregoing Resolution is hereby approved by me as to form, language and execution this 3rd day of December, 2002. By: City Attorney \\wpb-srv01\SANFORDSX399665v08\l 1/26/02\16787 011000 11 Resolution No. 92-02 City of Delray Beach, Florida General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) LIST OF EXHIBITS TO RESOLUTION NO. 92-02 EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E Draft Purchase Contract Draft Preliminary Official Statement Draft Escrow Deposit Agreement Authority's financial advisor's Letter of recommendation of negotiated sale and Bond Insurance Policy Commitment for Bond Insurance Policy from Financial Security Assurance, Inc. \\wpb-srv01\SANFORDSL399665v08\l 1/26/02\16787 011000 Resolution No. 92-02 Exhibit A BOND PURCHASE AGREEMENT December m, 2002 $ City of Delray Beach, Florida General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) The City Commission of the City of Delray Beach, Florida 100 N. W. First Avenue DelrayBeach, Florida 33444 Ladies and Gendemen: Bear Steams & Co., Inc. (the "Underwriter") offers to enter into the following agreement (the "Purchase Contract") with the City of Delray Beach, Florida (the "City"), which, upon your acceptance of this offer, will be binding upon the City and upon the Underwriter. This offer is made subject to your acceptance on or before 5:00 p.m., Eastern time, on the date hereof and if not so accepted, will be subject to withdrawal by the Underwriter upon notice to the City at any time prior to your acceptance hereof. 1. Purchase and Sale. Upon the terms and conditions and upon the basis of the representations, warranties and agreements set forth herein, the Underwriter hereby agrees to purchase from the City for offering to the public, and the City hereby agrees to sell and deliver to the Underwriter for such purpose, all (but not less than all) of the City's $ General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) (the "Bonds"). The Bonds shall be dated as of December 1, 2002, and shall be issued in such principal amounts and bear such rates of interest as set forth in Exhibit A attached hereto. Interest on the Bonds shall be payable on February 1, 2003, and on each August 1 and February 1 thereafter. The aggregate purchase price of the Bonds is $ (which takes into account a net original issue premium of $ and an Underwriter's discount of $ ) plus accrued interest from December 1, 2002 to the Closing Date (as hereinafter defined). The Bonds shall initially be offered to the public at such prices or yields as indicated on Exhibit A attached hereto. The Bonds are being issued pursuant to the Constitution and Laws of the State of Florida, particularly, Chapter 166, Florida Statutes, as amended, the City Charter of Delray Beach, as amended, and other applicable provisions of law, and Resolution No. 91-02 of the City duly adopted on December 3, 2002 ("Resolution 91-02") and Resolution No. 92-02 of the City duly adopted on December 3, 2002 ("Resolution 92-02" and together with Resolution No. 91-02, sometimes collectively referred to herein as the "Resolution"). The Bonds are general obligations of the City for which its full faith, credit and taxing power have been irrevocably pledged. The City is proposing to issue the Bonds to finance the cost of (i) refunding, on a current basis, the City's outstanding General Obligation Bonds, Series 1993A (Decade of Excellence Program) and the City's outstanding General Obligation Refunding Bonds, Series 1993B (Decade of Excellence Program) and (ii) paying cost of issuing the Bonds, including payment of the premium 017005 00303/21078414v3 for a municipal bond insurance policy (the "Bond Insurance Policy") to be purchased from Financial Security Assurance Inc. (the "Insurer"). Concurrently with the execution and delivery of the Bonds, there are to be executed and delivered, among other things: (a) the Escrow Deposit Agreement dated as of December __, 2002 (the "Escrow Agreement"), between the City and Wells Fargo Bank, National Association, as registrar and paying agent for the Bonds (the "Registrar and Paying Agent" or the "Escrow Agent"), (b) the Tax Certificate of the Issuer dated as of December __, 2002 (the "Tax Certificate") and (c) any other documents related to the transactions contemplated in the Official Statement in connection with the public offering, sale and distribution of the Bonds. This Purchase Contract, the Escrow Agreement and the Tax Certificate are sometimes collectively referred to herein as the "City Document". 2. Good Faith Deposit; Underwfiter's Liability. Delivered to you herewith, as a good faith deposk, is a corporate check of the Underwriter payable to the order of the City in the amount of $ (1% of the principal amount of the Bonds) as security for the performance by the Underwriter of its obligation to accept and pay for the Bonds at Closing in accordance with the provisions hereof. In the event that you accept this offer, said check will be held uncashed by the City as a good fakh deposk. At the Closing, the check will be returned to the Underwriter. In the event you do not accept this offer, the check shall be immediately returned to the Underwriter. If the Underwriter fails (other than for a reason permitted hereunder) to accept and pay for the Bonds at the Closing as provided herein, the check may be cashed by the City and the proceeds retained by the City as full liquidated damages for the failure of the Underwriter to accept and pay for the Bonds at closing and for any and all defaults hereunder on the part of the Underwriter, and the retention of such amounts shall constitute a full release and discharge of all chims and damages for such failure and for any and all such defaults hereunder on the part of the Underwriter, it being understood by both the City and the Underwriter that actual damages in such circumstances may be difficult or impossible to compute. In the event that the City fails to deliver the Bonds at the Closing, or if the City is unable at or prior to the Closing Date to satisfy or cause to be satisfied the conditions to the obligations of the Underwriter contained in this Purchase Contact, or if the obligations of the Underwriter contained herein shall be cancelled or terminated for any reason permitted by this Purchase Contract, the City shall be obligated to immediately return the check to the Underwriter and such retum shall constitute a full release and discharge of all claims by the City and the Underwriter arising out of the transaction contemplated herein except for the respective obligations of the City and the Underwriter set forth in Section 8 hereof. 3. Offering. The Underwriter agrees to make a public offering of the Bonds at the initial offering prices set forth in Exhibit A attached hereto; provided, however, the Underwriter reserves the right to make concessions to dealers and to change such initial offering prices as the Underwriter shall deem necessary in connection with the marketing of the Bonds. It shall be a condition of your obligation to sell and deliver the Bonds to the Underwriter, and the obligation of the Underwriter to purchase and accept delivery of the Bonds, that the entire initial aggregate principal amount of the Bonds shall be sold and delivered byyou and accepted and paid for by the Underwriter at the Closing. 2 4. Preliminary Official Statement and Official Statement. The City hereby confirms that it has heretofore made available to the Underwriter a Preliminary Official Statement of the City relating to the Bonds dated December 4, 2002 (which, together with the cover page and appendices contained therein, is herein called the "Preliminary Official Statement"). Within seven business days of the acceptance hereof by the City, the City shall deliver to the Underwriter, at the City's expense such reasonable number of conformed copies of the Official Statement (which, together with the official cover page and appendices contained therein, is herein called the "Official Statement"), as the Underwriter shall reasonably request, which shall be sufficient in number to permit the Underwriter to comply with paragraph (b)(4) of Rule 15c2-12 of the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934 and with Rule G-32 and all other applicable rules of the Municipal Securities Rulemaking Board. The City, by its acceptance hereof ratifies and approves the deeming final of the Preliminary Official Statement as of its date and the distribution thereof by the Underwriter and approves and authorizes the Underwriter to use the Official Statement and all documents described therein in connection with the public offering and the sale of the Bonds. The City agrees to make no amendments to the Official Statement without the prior written consent of the Underwriter, which consent shall not be unreasonably withheld. In addition, the City will undertake, pursuant to the Resolution, to provide certain annual financial and operating information and notices of the occurrence of certain events, if material. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the final Official Statement. In accordance with Section 218.385 (6), Florida Statutes, the Underwriter hereby discloses the required information as provided in Exhibit B attached hereto. In accordance with 218.385(2) and (3), Florida Statutes, the Underwriter has &livered to the City the Truth-in-Bonding statement, which statement is attached hereto as Exhibit C. 5. Representations, Warranties and Agreements. The City hereby represents, warrants and agrees as follows: a. As of the date of the Preliminary Official Statement and the date of this Purchase Contract and at the time of Closing, the statements and information contained in the Preliminary Official Statement and Official Statement are and will be true, correct and complete in all material respects and the Preliminary Official Statement and Official Statement will not omit any statement or information which should be included therein for the purposes for which the Preliminary Official Statement and Official Statement are to be used or which is necessary to make the statements or information contained therein, in light of the circumstances under which they were made, not misleading (provided, however, that no representation or warranty is being provided with respect to the Bond Insurance Policy or the Depository Trust Company ("DTC") and its book- entry system). b. Between the date of this Purchase Contract and the time of Closing, the City will not execute any bonds, notes or obligations for borrowed money, other than the Bonds, which pledge the full faith and credit of the City, without giving prior written notice thereof to the Underwriter. c. The City is, and will be at the Closing Date, duly organized and validly existing as a municipal corporation of the State of Florida, with the powers and authority set forth in the Act (as defined in the Resolution). d. The City has full legal fight, power and authority to: (~ enter into the City Documents, (ii) adopt the Resolution, (ih) sell, issue and deliver the Bonds to the Underwriter under the Act as provided herein and (iv) carry out and consummate the transactions contemplated by the City Documents, the Resolution and the Official Statement, and the City has complied, and at the Closing will be in compliance, in all respects, with the terms of the Act and with the obligations on its part in connection with the issuance of the Bonds contained in the Resolution, the Bonds, the Paying Agent Agreement, the Tax Certificate and this Purchase Contract. e. By all necessary official action, the City has (~ duly adopted the Resolution, (h) duly authorized and approved the Official Statement, and (ih) duly authorized and approved the execution and delivery of, and the performance by the City of, the Bonds, the City Documents, the Resolution and all other obligations on its part in connection with the issuance of the Bonds and the consummation by it of all other transactions contemplated by the City Documents and the Official Statement in connection with the issuance of the Bonds; and upon delivery of the Bonds at the Closing, the Resolution and the City Documents will, assuming the due authorization, execution and delivery of the City Documents by the other parties thereto, constitute legal, valid and binding obligations of the City, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, and similar laws affecting creditors' rights generally and subject, as to enforceability, to general principles of equity. f. When delivered to and paid for by the Underwriter at the Closing in accordance with the provisions of this Ih~rchase Contract, the Bonds shall be entitled to the benefits of the Resolution in accordance with the provisions of the Resolution, subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting credkors' rights generally and subject, as to enforceability, to general principles of equity. g. To the best knowledge of the City, the adoption of the Resolution and the authorization, execution and delivery of the City Documents and the Bonds, and compliance with the provisions hereof and thereof, will not conflict with, or constitute a material breach of or default under any law, administrative regulation, consent decree, ordinance, resolution or any agreement or other instrument to which the City was or is subject, as the case may be, nor will such adoption, execution, delivery, authorization or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the property or assets of the City, or under the terms of any law, administrative regulation, ordinance, resolution or instrument, except as expressly provided by the Resolution. h. At the time of Closing, the City will be in compliance in all respects with the covenants and agreements contained in the Resolution and no event of default and no event which, with the hpse of time or giving of notice, or both, would constitute an event of default under the Resolution, will have occurred or be continuing. i. Except as provided in the Official Statement, all approvals, consents, authorizations and oMers of any governmental authority or agency having jurisdiction in any matter which would constitute a condition precedent to the performance by the City of ks obligations hereunder and its obligations under the Resolution have been obtained and are in full force and effect, except that no representation is made with respect to compliance with any state blue sky or other legal investment laws. 4 j. The City is hwfully empowered to pledge its full faith, credk and taxing power as security for the payment of the principal of and interest on the Bonds. lc Except as expressly disclosed in the Official Statement, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency or public board or body pending or, to the best knowledge of the City, threatened against the City, affecting or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Bonds or the pledge of the City's full faith, credk and taxing power or contesting or affecting as to the City the validity or enforceability in any respect of the Bonds, the Resolution, the City Documents, or contesting the tax-exempt status of interest on the Bonds, or contesting the completeness or accuracy of the Official Statement or any supplement or amendment thereto, or contesting the powers of the City or the City Commission (the "Commission") or any authority for the issuance of the Bonds, the adoption of the Resolution or the execution and delivery by the City of the Bonds, the City Documents. 1. The City will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order to (~ qualify the Bonds for offer and sale under the "blue sky" or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate and (ii) determine the eligibility of the Bonds for investment under the hws of such states and other jurisdictions, and will use its best efforts to continue such qualifications in effect so long as required for the distribution of the Bonds; provided, however, that the City shall not be required to execute a general or special consent to service of process or qualify to do business or register as a broker/dealer in connection with any such qualification or determination in any jurisdiction. ~ The City will not take or omit to take any action which action or omission will in any way cause the proceeds from the sale of the Bonds to be applied in a manner contraryto that provided for in the Resolution, the Tax Certificate and as described in the Official Statement. n. The City neither is nor has been in default at any time after December 31, 1975, as to principal or interest with respect to an obligation issued or guaranteed bythe City. o. As of its date, the Preliminary Official Statement was deemed "final" by the City for the purposes of SEC Rule 15c2-12(b)(1) except for the omission of certain matters permitted thereby. p. If, after the date of this Purchase Contract and until the earlier of (~ ninety (90) days from the end of the "underwriting period" (as defined in SEC Rule 15c2-12) or (h) the time when the Official Statement is available to any person from a nationally recognized repository, but in no case less than twenty-five (25) days following the end of the underwriting period, any event shall occur which might or would cause the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the City shall, if it has knowledge of such event, notify the Underwriter thereof and, if in the opinion of the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, the City will at its own expense forthwith prepare and furnish to the Underwriter a sufficient number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) which will supplement or amend the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances existing at such time, not misleading. q. Any certificate signed by any official of the City and delivered to the Underwriter shall be deemed a representation and warranty by the City to the Underwriter as to the truth of the statements therein contained. r. The City has never failed to comply with any prior continuing disclosure obligation arising out of SEC Rule 15c2-12. 6. Closing. At noon, local time, on December 19, 2002 (the "Closing Dater), or at such time on such earlier or later date as shall be agreed upon, the City will, subject to the terms and conditions hereof deliver to DTC in the City of New York, New York or such other location as shall be acceptable to the City and DTC, the Bonds in permanent form, duly executed, and will deliver the other documents herein mentioned at a location mutually agreed upon by the City and the Underwrite~, and the Underwriter will pay the purchase price of the Bonds as set forth in Section I hereof plus accrued interest on the Bonds from December 1, 2002 to the Closing Date, by immediately available funds, payable to the order of the City. This delivery and payment is herein called the "Closing." 7. Closing Conditions. The Underwriter has entered into this Purchase Contract in reliance upon the representations and warranties of the City herein contained and the performance by the City of its obligations hereunder, both as of the date hereof and as of the time of Closing. The obligations of the Underwriter under this Purchase Contract are and shall be subject to each of the following conditions, and the obligations of the City shall be subject to the City receiving the items described in conditions (i)(ii), (f)(iv), (f)(vi) through (f)(x): a. The representations and warranties of the City contained herein shall be true and correct as of the date hereof and as of the Closing Date, as if made on the Closing Date. b. The City shall have performed all agreements of the City required to be performed under the Resolution and this Purchase Agreement prior to or on the Closing Date. c. At the time of the Closing, the Resolution shall be in full force and effect in accordance with its terms and shall not have been amended, modified or supplemented, and the Official Statement shall not have been supplemented or amended, except in any such case as may have been agreed to by the Underwriter. d. At the time of the Closing, all official action of the City rehting to the City Documents, the Resolution, the Official Statement and the Bonds shall be in full force and effect in accordance with their respective terms and shall not have been amended, modified or supplemented in any material respect, except in each case as may have been agreed to by the Underwriter. e. The Underwriter shall have the right to cancel the agreement contained herein to purchase, to accept delivery of and to pay for the Bonds by notifying you in writing of their intention to do so if: i. between the date hereof and the Closing Date, legislation shall have been enacted by the Congress of the United States ("Congress"), or recommended to the Congress for passage by the President of the United States, or favorably reported for passage to either House of Congress by any Committee of such House, or passed by either House of Congress, or a decision shall have been rendered by a court of the United States or the United States Tax Court, or a ruling shall have been made or a regulation shall have been proposed or made by the Treasury Department of the United States or the Internal Revenue Service, with respect to the federal taxation of interest received on obligations of the general character of the Bonds, which, in the opinion of Counsel for the Underwriter has, or will have, the effect of making such interest subject to inclusion in gross income for purposes of federal income taxation, or ii. between the date hereof and the Closing Date, legislation shall be enacted or any action shall be taken by the Securities and Exchange Commission which has the effect of requiring the contemplated issuance or distribution of the Bonds to be registered under the Securities Act of 1933, as amended, or of requiring the Resolution to be qualified under the Trust Indenture Act of 1939, as amended, or iii. an event described in paragraph (p) of Section 5 hereof shall have occurred which requires an amendment or supplement to the Official Statement and which, in the reasonable opinion of the Underwriter, adversely affects the marketability of the Bonds or the market price thereof, or iv. in the reasonable opinion of the Underwriter, payment for the delivery of the Bonds is rendered impracticable or inadvisable because (A) trading in securities generally shall have been suspended on the New York Stock Exchange, Inc., or CB) a general banking moratorium shall have been established by Federal, New York or Florida authorities, or (C) a war or terrorist act involving the United States or other national calamity shall have occurred or been dechred, or v. an order, decree or injunction of any court of competent jurisdiction, or any order, ruling, regulation or administrative proceeding by any governmental body or board, shall have been issued or commenced, or any legislation, enacted, with the purpose or effect of prohibiting the issuance, offering or sale of the Bonds as contemplated hereby or by the Official Statement or prohibiting the adoption or performance of the Resolution, or vi. the City has, without the prior written consent of the Underwriter, offered or issued any bonds, notes or other obligations for borrowed money, or incurred any material liabilities, direct or contingent, other than as described in the Official Statement, in either case secured by the City's full faith, credit and taxing power, or vii. the President of the United States, the Office of Management and Budget, the Department of Treasury, the Internal Revenue Service or any other governmental body, department, agency or commission of the United States or the State of Florida shall take or propose to take any action or implement or propose regulations, rules or legislation which, in the reasonable judgment of the Underwriter, materially adversely affects the market price or marketability of the Bonds or causes any material information in the Official Statement, in light of the circumstances under which it appears, to be misleading in any material respect, or 7 viii. any executive order shall be announced, or any legislation, oMinance, rule or regulation shall be proposed by or introduced in, or be enacted by any governmental body, department, agency or commission of the United States or the State of Florida or the State of New York, having jurisdiction over the subject matter, or a decision by any court of competent jurisdiction within the United States or within the State of Florida or the State of New York shall be rendered which, in the reasonable judgment of the Underwriter, materially adversely affects the market price or marketability of the Bonds or causes any information in the Official Statement to be misleading in any material respect, or ix. prior to Closing, Moody's Investor's Service, Inc. ("Moody's") and Standard & Poor's Rating Services, a division of The McGraw-Iffdl Companies ("Standard & Poor's"), shall inform the City or the Underwriter that the Bonds will not be rated at least "Aaa" and "AAA," respectively, or the Insurer shall inform the City or the Underwriter that k will not deliver its Bond Insurance Policy on the Closing Date. fo At or prior to the Closing Date, the Underwriter shall receive the following documents: i. The Resolution certified by the City Clerk of the City under seal as having been duly adopted by the City and as being in effect, with such supplements, modifications or amendments as may have been agreed to by the Underwriter. ii. A final approving opinion of Greenburg Traurig, P.A., Bond Counsel, addressed to the City, dated the date of the Closing, in substantially the form included in the Official Statement as Appendix D. iii. A letter of Bond Counsel addressed to the Underwriter and the Insurer, and dated the Closing Date, to the effect that their final approving opinion referred to in Section 7(f)(h) hereof maybe relied upon bythe Underwriter and the Insurer to the same extent as if such opinion were addressed to the Underwriter and the Insurer. iv. An opinion of Susan A. Ruby, Esquire, City Attorney, addressed to the City, the Underwriter and the Insurer, and dated the date of the Closing, substantially to the effect that: (1) the City is a municipal corporation duly existing under the Constitution and hws of the State of Florida and has good right and hwful authority to adopt the Resolution, execute and deliver the City Documents and issue the Bonds, to secure the Bonds in the manner provided in the Resolution, to carry out its powers under the Act (as defined in the Resolution) and to perform all of its obligations under the Resolution, the Bonds and the City Documents; (2) the Resolution has been duly adopted by the City and the Bonds and the City Documents have been duly authorized, executed and delivered by the City, and the Resolution and the Bonds, when duly authenticated, and the City Documents, when duly executed by the other parties thereto constitute valid, legal and binding agreements of the City enforceable in accordance with their respective terms; provided, however, the enforceability thereof may be subject to bankruptcy, insolvency, affecting creditors' rights generally; reorganization, moratorium and other similar laws (3) no consent, waiver or any other action by any person, board or body, public or private, other than the approval of the City which has been duly and validly obtained, is required as of the date hereof for the City to issue the Bonds or adopt the Resolution, or to execute and deliver the City Documents, or to perform its obligations under any of the foregoing, except she need not express any opinion regarding any blue sky or legal investment laws; (4) to the best of her knowledge, the adoption of the Resolution and the execution and delivery of the City Documents and the Bonds and compliance with the provisions of each do not and will not conflict with or constitute a breach of or default under any applicable law or administrative regulation of the State of Florida, or any applicable judgment or decree or any trust agreement, loan agreement, bond, note, resolution, ordinance, agreement or other instrument to which the City is a part or is otherwise subject; (5) except as otherwise disclosed in the Official Statement, there is no litigation or proceeding, pending or, to the best of her knowledge, threatened, challenging the creation, organization or existence of the City or the validity of the Bonds or the City Documents or seeking to restrain or enjoin any of the transactions referred to therein or contemplated thereby, or which, in any manner, questions the right of the City to issue the Bonds or to pledge its full faith, credit and taxing power as security for the rep%~nent of the Bonds; (6) there is no litigation or proceeding pending to which the City is a party, the ultimate disposition of which would have a material adverse effect on the finances or operations of the City or its abilityto meet its obligations with respect to the Bonds; (7) nothing has come to her attention that would lead her to believe that the Official Statement as of its date or as of the date hereof contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (8) the Official Statement has been duly authorized, executed and delivered bythe City, and the City has consented to the ttse thereof bythe Underwriter, and (9) the City is hwfully empowered to pledge the City's full faith, credk and taxing power as security for the payment of the principal of and interest on the Bonds. v. A certificate, which shall be true and correct at the time of Closing, signed by the City Manager and the Finance Director or such other officials satisfactory to the Underwriter, and in form and substance satisfactory to the Underwriter, to the effect that, to the best of their knowledge and belief: (1) the representations, warranties and covenants of the City contained herein are true and correct in all material respects as of the Closing Date and that the City has satisfied all conditions to be performed or satisfied hereunder at or prior to Closing; (2) the Official Statement did not as of its date, and does not as of the Closing Date, contain any untrue statement of a material fact or omit to state a material fact which should be included therein for the purposes for which the Official Statement is to be used, or which is necessary in order to make the statements contained therein, in light of the circumstances in which they were made, not misleading (provided, that no opinion need be expressed regarding the information contained therein relating to the Insurer, the Bond Insurance Policy, DTC and its book- entry system); (3) that, except as disclosed in the Official Statement, no litigation or other proceedings are pending or, to his or her knowledge, threatened against the City in any court or other tribunal of competent jurisdiction, State or Federal, in any way (~ restraining or enjoining the issuance, sale or delivery of any of the Bonds, or (h) questioning or affecting the validity of the City Documents, the Bonds, the Resolution or the pledge by the City to the Bondholders of ks full faith, credit and taxing power, or (th) questioning or affecting the validity of any of the proceedings for the authorization, sale, execution, issuance or delivery of the Bonds or (iv) questioning or affecting the organization or existence of the City or the title to office of the officers thereof or (v) asserting that the Preliminary Official Statement or the Official Statement contains any untrue statement of a material fact or omits any material fact necessary to make the statements therein, in light of the circumstances under which theywere made, not misleading; (4) that except as disclosed in the Official Statement, the City is not in default nor has been in default at anytime after December 31, 1975 as to principal or interest with respect to any obligation issued or guaranteed bythe City;, (5) that no event affecting the City has occurred since the date of the Official Statement that should be disclosed in the Official Statement for the purposes for which it is to be used or that is necessary to be disclosed therein in order to make the statements and information therein not misleading in any material rexpect; and (6) that since the date of the financial statements included in the Official Statement, (~ no material adverse change has occurred in the financial condition of the City and (h) the City has not incurred any material liabilities other than in the ordinary course of business, except as set forth in or contemplated by the Official Statement. vi. An opinion of Greenburg Traurig, P.A., as Bond Counsel, addressed to the City and the Underwriter, and dated the Closing Date, to the effect that: (1) with respect to the information in the Official Statement and based upon said firm's review of the Official Statement, as Bond Counsel: (A) k is of the opinion that the information in the Offichl Statement under the headings "INTRODUCTION," "DESCRIPTION OF THE SERIES 2002 BONDS -- General," "DESCRIPTION OF THE SERIES 2002 BONDS - Redemption," "SECURITY FOR THE SERIES 2002 BONDS," "CONTINUING DISCLOSURE UNDERTAKING," (except for the financial and statistical data contained in any such headings, as to which no view need be expressed), and "APPENDIX C- The Resolution" insofar as such information purports to be descriptions or summaries of the Resolutions, the Bonds or state and federal laws to the extent indicated therein, are accurate and fair statements or summaries of the matters set forth or the documents referred to therein; and (B) the statements on the cover page and under the section captioned "TAX EXEMPTION" insofar as such statements summarize certain provisions of the tax hw, regulations, rulings and notices, are fair and accurate statements of the provisions so summarized; and 10 (2) the Bonds are exempt from registration under the Securities Act of 1933, as amended, and the Resolution is exempt from qualification as an indenture under the Trust Indenture Act of 1939, as amended. vii. A certificate of an authorized representative of the Registrar, as Paying Agent to the effect that: (1) the Registrar and Paying Agent is a national banking association duly organized, validly existing and in good standing under the laws of the United States of America and is duly authorized to exercise trust powers, (2) the Registrar and Paying Agent has all the requisite authority, power, licenses, permits and franchises, and has full corporate power and legal authority to execute and perform its functions under the Resolution and any other documents to which k is a party (herein, the "Bond Documents"); 0) the performance by the Registrar and Paying Agent of its functions under the Resolution and the Bond Documents will not result in any violation of the Articles of Association or Bylaws of the Registrar and Paying Agent, any court order to which the Registrar and Paying Agent is subject or any agreement, indenture or other obligation or instrument to which the Registrar and Paying Agent is a party or by which the Registrar and Paying Agent is bound, and no approval or other action by any governmental authority or agency having supervisory authority over the Registrar and Paying Agent is required in order for the Registrar and Paying Agent to perform its functions under the Resolution and the Bond Documents; (4) the Bond Documents constitute valid and binding obligations of the Registrar and Paying Agent in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and subject, as to enforceability, to general principles of equity;, and (5) to the best of such authorized representative's knowledge, there is no action, suit, proceeding, or investigation at hw or in equity before any court, public board or body pending or, to his or her knowledge, threatened against or affecting the Registrar and Paying Agent wherein an unfavorable decision, ruling or finding on an issue raised by any party thereto is likely to materially and adversely affect the ability of the Registrar to perform its obligations under the Resolution and the Bond Documents. viii. Letters of Moody's and Standard & Poor's to the effect that the Bonds have been assigned a rating no less favorable than "Aaa" and "AAA," respectively, which ratings shall be in effect as of the Closing Date. ix. Duly executed copies of the Bond Insurance Policy, the City Documents and the Bond Documents in form acceptable to the Underwriter and Bond Counsel. x. An opinion of general counsel to the Insurer and a certificate of an officer of the Insurer dated the date of the Closing and addressed to the Underwriter and the City, concerning the Insurer, the Bond Insurance Policy, and the information relating to the Insurer and the Bond Insurance Policy, contained in the Official Statement, in form and substance satisfactory to the Underwriter. 11 xi. A certificate executed by the Finance Director dated the Closing Date, satisfactory to Bond Counsel setting forth the facts, estimates and circumstances which establish that it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to be "arbkrage bonds" within the meaning of the Internal Revenue Code of 1986, as amended, and to the best of the knowledge and belief of such officer, such expectations are reasonable. xii. A letter of representations of the Issuer to DTC. xiii. Internal Revenue Service Form 8038-G. xiv. State of Florida Division of Bond Finance Form BF2003/2004-B. xv. Such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably request. If the City shall be unable to satisfy the conditions to the obligations of the Underwriter to purchase, to accept delivery of and to pay for the Bonds contained in this Purchase Contract and the Underwriter does not waive such inability in writing, or if the obligations of the Underwriter to purchase, to accept delivery of and to pay for the Bonds shall be terminated for any reason permitted by this Purchase Contract, this Purchase Contract shall terminate, the good faith deposit described in Section 2 hereof shall be returned to the Underwriter and neither the Underwriter nor the City shall be under any further obligation hereunder, except that the respective obligations of the City and the Underwriter set forth in Section 8 hereof shall continue in full force and effect. 8. Expenses. The Underwriter shall be under no obligation to pay, and the City shall pay, any expense incidem to the performance of the City's obligations hereunder including, but not limited to: (a) the cost of preparation, printing and delivery of the Resolution; (b) the cost of preparation and printing of the Bonds; (c) the fees and expenses of Bond Counsel; (d) the fees and expenses of Public Financial Management, Inc., the City's financial advisor for the Bonds; (e) the fees and disbursements of any other experts, consultants or advisors retained by the City;, (f) fees for bond ratings; (g) the fees and expenses of the Registrar and Paying Agem; and (h) the costs of preparing, printing and delivering the Preliminary Official Statement and the Official Statement and any supplements or amendments thereto. The Underwriter shall pa3~ (a) the cost of printing and delivery of this Purchase Contract; (b) the cost of all "Blue Sky" and legal investment memoranda and rehted f'ding fees; (c) all advertising expenses; and (d) all other expenses incurred by it in connection with the public offering of the Bonds including the fees and disbursements of counsel for the Underwriter. In the event that either party shall have paid obligations of the other as set forth in this Section 8, adjustment shall be made at the time of the Closing. 9. Notices. Any notice or other communication to be given to you under this Purchase Contract may be given by mailing the same to the attention of the City Manager, at the address set forth on the first page hereof, and any such notice or other communication to be given to the Underwriter may be mailed to Bear Steams, 225 N.E. Mizner Blvd., Boca Raton, Florida 33483, Attention: J.W. Howard. 10. Parties in Interest. This Purchase Contract is made solely for the benefit of the City and the Underwriter and ho other party or person shall acquire or have any right hereunder or by 12 virtue hereof. All of the City's representations, warranties and agreements in this Purchase Contract shall remain operative and in full force and effect and shall survive the delivery of the Bonds. 11. Waiver. Notwithstanding any provision herein to the contrary, the performance of any and all obligations of the City hereunder and the performance of any and all conditions contained herein for the benefit of the Underwriter may be waived by the Underwriter and the approval of the Underwriter when required hereunder or the determination of their satisfaction as to any document referred to herein shall be evidenced by its purchase of the Bonds. 12. No Liability. Neither the Commission, nor any of the members thereof, nor any officer, agent or employee thereof shall be charged personally by the Underwriter with any liability, or held liable to the Underwriter under any term or provision of this Purchase Contract because of its execution or attempted execution, or because of any breach or attempted or alleged breach thereof. 13. Governing Law. This Purchase Contract, and the terms and conditions herein, shall constitute the full and complete agreement between the City and the Underwriter with respect to the purchase and sale of the Bonds. This Purchase Contract shall be governed by and construed in accordance with the laws of the State of Florida. 14. Operation of Warranties, Etc. All the representations, warranties, covenants and agreements of the City in this Purchase Contract shall remain operative and in full force and effect as if made on the date hereof and the Closing Date, regardless of (i) any investigation made by or on behalf of the Underwriter or by Counsel to the Underwriter, or (ii) delivery of and any payment for the Bonds hereunder. 15. Section Headings. Section headings have~ been inserted in this Purchase Contract as a matter of convenience of reference only, and it is agreed that such section headings are not a part of this Purchase Contract and will not be used in the interpretation of any provisions of this Purchase Contract. 16. Sevembility. If any provision of this Purchase Contract shall be held or deemed to be, or shall in fact be, invalid, inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions, or in all jurisdicfiom because k conflicts with any provisions of any constitution, statute, or rule of public policy, or for any other reasons, such circumstances shall not have the effect of rendering the provision in question invalid, inoperative or unenforceable in any other case or circumstances, or of rendering any other provision or provisions of this Purchase Contract invalid, inoperative or unenforceable to any extent whatever. 17. Execution of Counterparts. This Purchase Contract may be executed in any number of counterparts, all of which taken together shall be one and the same instrument, and any parties hereto may execute this Purchase Contract by signing any such counterpart. The execution of this Purchase Contract has been duly authorized bythe Commission. 13 18. Effectiveness. This Purchase Contract shall become effective upon the execution by the appropriate City officials of the acceptance hereof by the City and shall be valid and enforceable at the time of such acceptance. Very truly yours, BEAR STEARNS & OD., INC. By. j. w. Howard, Associate Director Accepted this __ day of December, 2002 by the City Commission of the City of Delray Beach, Florida (Vice) Mayor 14 EXHIBIT A MATURITIES, AMOUNTS, INTEREST RATES, AND PRICES OR YIELDS $ SERIAL BONDS Maturities Imerest (Feb. 1) Amounts Rates Yield 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 A-1 EXHIBIT B DISCLOSURE STATEMENT The City Commission of the City of Delray Beach, Florida 100 N. W. First Avenue DelrayBeach, Florida 33444 $ City of Delray Beach, Florida General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) Ladies and Gentlemen: In connection with the proposed issuance by the City of Delray Beach, Florida of $ of its General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) (the "Bonds"), Bear Steams (the "Underwriter") is underwriting a public offering of the Bonds. The purpose of this letter is to furnish, pursuant to the provisions of Section 218.385(6), Florida Statutes, certain information in respect of the arrangements comemplated for the underwriting of the Bonds as follows: A. The nature and estimated amount of expenses to be incurred by the Underwriter in connection with the purchase and reoffering of the Bonds are set forth in Schedule I attached hereto. B. No person has entered into an understanding with the Underwriter, or to the knowledge of the Underwriter, with the City, for any paid or promised compensation or valuable consideration, directly or indirectly, expressly or implied, to act solely as an intermediary between the City and the Underwriter or to exercise or attempt to exercise any influence to effect any transaction in the purchase of the Bonds. C. The underwriting spread, the difference between the price at which the Bonds will be initially offered to the public by the Underwriter and the price to be paid to the City for the Bonds, exclusive of accrued interest, will be $ per $1,000 of Bonds issued. D. As parc of the estimated underwriting spread set forth in Paragraph (c) above, the Underwriter will charge a managemem fee of $ per $1,000 of Bonds issued. E. No other fee, bonus or other compensation is estimated to be paid by the Underwriter in connection with the issuance of the Bonds to any person not regularly employed or retained by the Underwriter (including any "finder" as defined in Section 218.386(1)(a), Florida Statutes), except as specifically enumerated as expenses to be incurred by the Underwriter, as set forth in Paragraph (a) above. B-1 We understand that you do not require any further disclosure from the pursuant to Section 218.385 (6), Florida Statutes. BEAR STEARNS & CO., INC. 225 N.E. Mizner Blvd. Delray Beach, Florida 33484 Underwriter, B~ j. w. Howard, Associate Director B-2 SCHEDULE I UNDERWRITERS ESTIMATED EXPENSES MSRB, CUSIP, DTC, PSA Travel, Closing Communications/Advertising Day Loan Counsel Fees Miscellaneous Total Expenses (per $1,000) EXHIBIT C TRUTH-IN BONDING STATEMENT The following troth-in-bonding statement is prepared pursuant to Section 218.385(2) and (3), Florida Statutes, and is for informational purposes only. It shall not affect or control the actual terms and conditions of the debt or obligations. The City of Delray Beach, Florida (the "City") is proposing to issue $ of City of Delray Beach, Florida General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) (the "Bonds") for the purpose of providing funds to refund the City's outstanding General Obligation Bonds, Series 1993A (Decade of Excellence Program) and the City's outstanding General Obligation Refunding Bonds, Series 1993B (Decade of Excellence Program) (together, the "Refunded Bonds"), and to pay certain costs and expenses related to the issuance of the Bonds. The Bonds are expected to be repaid over a period of approximately_ years. At the interest rotes set forth in Exhibk A of the Purchase Contract, total interest paid over the life of the Bonds inclusive of accrued interest will be $ The source of repayment and security for the Bonds is the City's full faith, credit and taxing power. Because the Bonds will refund the Refunded Bonds and will result in a lower debt service on such bonded indebtedness, authorizing the Bonds will not result in any additional funds of the City not being available to finance other projects of the City. Exhibit B PRELIMINARY OFFICIAL STATEMENT DATED DECEMBER 4, 2002 NEW ISSUE RATINGS: (See "Ratings" hereto) In the opmion of Bond Counsel under existmg law, and assumtng comphance ~vith the tax covenant desMbed hereto, interest on the Series 2002 Bonds (as defined be/om) ts excluded from gross income for federal tncome tax proposes, and is not a ypeafic preference item for purposes of the federal alternattve minimum tax. See homever, 'TAX EXEMPT[ON" heretn for a descnptton of certain other taxes ~mposed on corporatwns. Bond Counsel ts also of the opimon that tnterest on the Series 2002 Bonds ts exempt from taxation under existing lau, s of the State of Flonda, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income orprofits on debt obligations otvned by corporations, banks and sarongs assoctattons. CITY OF DELRAY BEACH, FLORIDA $18,000,000' General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) Dated: December 1, 2002 Due: February 1, as shown on the Inside Cover The Caty of Delray Beach, Florida General Obhganon Refunchng Bonds, Series 2002 (Decade of Excellence Program) (the "Series 2002 Bonds") will be ~ssued as fully regqstered bonds w~thout coupons in the pnnc~pal denomination of $5,000 or any integral muluples thereof. The Series 2002 Bonds unll be regqstered m the name of Cede & Co., as nominee for the Depository Trust Company, New York, New York ('q2)TC'), and DTC will act as securities deposatory for the Series 2002 Bonds. So long as Cede & Co. as the registered owner of the Series 2002 Bonds, prmcapal of, premium, af any, and interest on the Series 2002 Bonds chrectly to Cede & Co., as nominee for DTC by Wells Fargo Bank, Nauonal Assocmuon, having a designated corporate trust office m Coral Spnngs, Florida, as Paying Agent for the Series 2002 Bonds (the "Paying Agent"). Interest on the Series 2002 Bonds ~s payable senn-annually, commencing February 1, 2003 and each August 1 and February 1 thereafter. The Series 2002 Bonds are not subject to optional redempnon and mandatory smktng fund redempuon prior to thmr stated maturity. The proceeds of the Series 2002 Bonds will be used by the Caty of Delray Beach, Florida (the "C~ty") to (0 refund, on a current bas~s, the C~ty's General Obligauon Bonds, Series 1993 A (Decade of Excellence Program) outstanding m the par amount of $10,050,000 and the C~ty's General Obhgauon Refunding Bonds, Series 1993 B (Decade of Excellence Program) outstanding m the par amount of $6,905,000, and (h) pay the cost of ~ssumg the Series 2002 Bonds. The Series 2002 Bonds and the interest on such Series 2002 Bonds are general obligations of the City. In each year while any of the Series 2002 Bonds are outstanding and unpaid, the City is irrevocably and unconditionally obligated to levy and collect ad valorem taxes without limitation at the rate or amount on all the taxable property within the City, sufficient to pay the interest on the Series 2002 Bonds as it becomes due, and to provide for the payment of the principal of the Series 2002 Bonds at maturity. The scheduled payment of pnnc~pal of and interest on the Series 2002 Bonds when due will be guaranteed under an insurance pohcy to be ~ssued concurrently v~th the dehvery of the Series 2002 Bonds by: FINANCIAL SECURITY ASSURANCE INC For a dascussaon of the terms and provismns of such policy, including the limatanons, see "BOND INSURANCE," hereto. Tbas cover page contmns certain informatton for qtuck reference only. It ~s not a summary of the ~ssue. Investors must read the entire Official Statement to obtain mformanon essential to the making of an anformed investment decision. The Series 2002 Bonds are offered when, as and ff assued, subject to approval as to legahty by Greenburg Traurig, P.A., West Palm Beach, Florida, Bond Counsel to the C~ty, and certain other concht~ons. Certain legal matters will be passed on for the C~ty by ~ts C~ty Attorney, Susan A Ruby, Esq Certain legal matters will be passed upon for the Underwriter by ars counsel, Blank Rome Cormsky & McCauley LLP, Boca Raton, Florida and Ptuladelptua, Pennsylvama Pubhc Ftnanoal Management, lnc. Orlando, Florida, served as fmancml advisor to the C~ty in connecnon w~th the ~ssuance of the Series 2002 Bonds It as expected that the Series 2002 Bonds m defmauve form will be available for dehvery through the facfliues of DTC m New York, New York, on or about December 19, 2002 Bear Stearns & Co., Inc. * Prehmmary, sublect to change. 017005 00303/21071035v5 [ MATURITIES, AMOUNTS, INTEREST RATES, YIELDS, PRICES AND CUSIP NUMBERS Mamri~ Principal Interest Amount Rate Yield Price CUSIP NUMBERS CITY OF DELRAY BEACH, FLORIDA CITY COMMISSION David W. Schmidt, Mayor Jeff Perlman, Vice Mayor Patricia Langley Archer, Deputy Vice Mayor Jon tL Levinson, Commissioner Alberta Perry McCarthy, Commissioner CITY OFFICIALS David T. HaMen, City Manager Joseph M. Safford, Finance Director Rebecca S. O'connor, Treasurer Richard C. Hasko, Director of Environmental Services Randall Krejcarek, City Engineer Barbara Garito, City Clerk CITY ATTORNEY Susan A. Ruby, Esquire BOND COUNSEL Greenbevg Traurig, P.K West Palm Beach, Florida UNDERWRITER'S COUNSEL Blank Rome Comisky & McCauley LLP Boca Raton, Florida and Philadelphia, Pennsylvania FINANCIAL ADVISOR Public Financial Managemem, Inc. Orlando, Florida No dealer, broker, salesperson or other person has been authorized bythe City or the Underwriter to give any information or to make any representations with respect to the Series 2002 Bonds other than those comained in this Official Statement and, ff given or made, such infonmtion or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement is not to be con_strued as a contract with the purchasers of the Series 2002 Bonds. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Series 2002 Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The iv_formation set forth herein has been obtained from the City, Financial Security Assurance Inc. ("Financial Security"), DTC and other sources which are believed to be reliable but it is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation of, the Underwriter. The City makes no representation as to any information from sources other than the information provided by the City. The information and expressions of opinion herein are subject to change without notice, and, neither the delivery of this Official Statement nor any sale of Series 2002 Bonds, under any circumstances, create any implication that there has been no change in any information set forth herein since the date hereof or the date as of which particular information is given, if earlier. This Official Statement is not to be construed as a contract or agreement between the City or the Underwriter and the purchasers or owners, from time to time, of any of the Series 2002 Bonds. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERAI.I.OT OR EFFECT TRANSACTIONS WHICIq STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 2002 BONDS AT LEVELS ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY The following Official Statement contains a general description of the Series 2002 Bonds and sets forth certain information about the City. All summaries and descriptions herein of documents, instruments and agreements, including the Series 2002 Bonds, are qualified in their entirety by reference to the complete, definitive forms of the Series 2002 Bonds and such documents, instruments and agreements, copies of which are on file at the office of the Paying Agent. THE SERIES 2002 BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACT. THE REGISTRATION OR QUALIFICATION OF THE SERIES 2002 BONDS IN ACCORDANCE WITH APPLICABLE PROVISIONS OF THE SECURITIES LAWS OF CERTAIN STATES, IF ANY, IN WHICH THE SERIES 2002 BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN CERTAIN OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE SERIES 2002 BONDS OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. Other than with respect to information concerning Financial Security contained under the caption "BOND INSURANCE" and Appendix D specimen "Municipal Bond Insurance Policy" herein, none of the information in this Official Statement has been supplied or verified by Financial Security and Financial Security makes no representation or warranty, express or implied, as to (i) the accuracy or completeness of such information; (ii) the validity of the Series 2002 Bonds; or ('fii) the tax-exempt status of the interest on the Series 2002 Bonds. TABLE OF CONTENTS Page INTRODUCTION ........................................................................................................................................... 1 PURPOSE OF SERIES 2002 BONDS ......................................................................................................... 1 PLAN OF REFUNDING - SERIES 2002 BONDS .................................................................................. 2 SOURCES AND USES OF FUNDS ............................................................................................................ 2 DESCRIPTION OF THE SERIES 2002 BONDS .................................................................................... 3 General .......................................................................................................................................................... 3 Book-Entry Only System ........................................................................................................................... 3 Discontinuance of Book-Entry Only System. ......................................................................................... 6 Redemption .................................................................................................................................................. 7 SECURITY FOR THE SERIES 2002 BONDS .......................................................................................... 7 Pledge of Ad Valorem Taxes ..................................................................................................................... 7 Assessments ................................................................................................................................................. 7 Collections .................................................................................................................................................... 8 Delinquent Taxes ......................................................................................................................................... 8 TAX TABLES ................................................................................................................................................. BOND INSURANCE .................................................................................................................................... 13 Bond Insurance Policy .............................................................................................................................. 13 Financial Security Assurance Inc ............................................................................................................. 13 THE CITY ....................................................................................................................................................... 14 Location and Size ...................................................................................................................................... 14 Brief Description ....................................................................................................................................... 14 Budgeting, Accounting and Auditing ..................................................................................................... 14 Operating Budget for Fiscal Year Ended September 30, 2001 .......................................................... 15 State Assessment Cap ............................................................................................................................... 15 LEGAL DEBT LIMITATIONS .................................................................................................................. 16 The Florida Constitution .......................................................................................................................... 16 DEBT S~Y ......................................................................................................................................... 16 Selected Debt Data .................................................................................................................................... 16 RATINGS ......................................................................................................................................................... 21 LEGALITY ...................................................................................................................................................... 21 TAX EXEMPTION ....................................................................................................................................... 21 UNDERWRITING ........................................................................................................................................ 23 CONTINUING DISCLOSURE UNDERTAKING ............................................................................... 23 ENFORCEABILITY OF REMEDIES ...................................................................................................... 26 LITIGATION ................................................................................................................................................. 26 GENERAL PURPOSE FINANCIAL STATEMENTS .......................................................................... 26 FINANCIAL ADVISOR ............................................................................................................................... 27 VERIFICATION OF MATHEMATICAL COMPUTATIONS ........................................................... 27 MISCELLANEOUS ....................................................................................................................................... 27 AUTHORIZATION OF AND CERTIFICATION CONCERNING OFFICIAL STATEMENT28 APPENDIX A -GENERAL INFORMATION CONCERNING CITY OF DELRAY BEACH FLORIDA AND PAI2Vl BEACH COUNTY APPENDIX B APPENDIX C APPENDIX D - CITY OF DELRAY BEACH, FLORIDA GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER INFORMATION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 - FORM OF APPROVING OPINION OF BOND COUNSEL - SPEC[MEN MUNICIPAL BOND INSURANCE POLICY OFFICIAL STATEMENT $18,000,000' The City of Delray Beach, Florida General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) INTRODUCTION The purpose of this Official Statement, which includes its cover page and certain enclosed Appendices, is to furnish information with respect to the issuance by the City of Delray Beach, Florida (the "City") of its General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) (the "Series 2002 Bonds") in the aggregate principal amount of $ ! 8,000,000'. The Series 2002 Bonds are being issued under the authority of and in full compliance with the Constitution and, laws of the State of Florida, including Chapter 166, Florida Statutes, as amended and supplemented, the City Charter, as amended and supplemented, and other applicable provisions of law. The Series 2002 Bonds are being issued more specifically pursuant to Resolution No. 77-89 (the "Referendum Resolution"), adopted by the City Commission of the City (the "Commission") on October 16, 1989, Resolution No. 91-02, adopted by the Commission on December 3, 2002 and Resolution No. 92-02, a series resolution adopted by the Commission on December 3, 2002, which authorized the issuance by the City of up to $18,000,000 in General Obligation Bonds in one or more series and sets forth the details of the Series 2002 Bonds (the "Series 2002 Resolution" and together with the Referendum Resolution, the "Resolution"). The City previously issued its $10,210,000 General Obligation Bonds, Series 1993 A (Decade of Excellence Program) (the "1993 A Bonds") and its $8,835,000 General Obligation Refunding and Bonds, Series 1993 B (Decade of Excellence Program (the "1993 B Bonds") of which $10,050,000 and $6,905,000 remain outstanding, respectively (together the "1993 Bonds"). Capitalized terms not otherwise defined in this Official Statement shall have the same meanings assigned to such terms in the Resolution. The description of the Series 2002 Bonds, the Resolutions, the description of certain statutory provisions and the information from various reports and statements contained in this Official Statement are not comprehensive or definitive. All references to such documents, reports and statements are qualified by the actual content of such documents, reports and statements, copies of which may be obtained by contacting the Director of Finance, City of Delray Beach, Florida, 100 NW, First Avenue, Delray Beach, FL 33444, (561) 243- 7115 or during the offering period of the Series 2002 Bonds from Public Financial Management, Inc., financial advisor to the City, (407) 648-2208. PURPOSE OF SERIES 2002 BONDS The Series 2002 Bonds will be issued by the City to (~ pay the cost of refunding, on a current basis, $10,050,000 aggregate principal amount of the 1993 A Bonds and $6,905,000 aggregate principal amount of the 1993 B Bonds (together, the "Refunded Bonds"); and (h) pay the costs of issuance of the Series 2002 Bonds. * Preliminary, subject to change. PLAN OF REFUNDING - SERIES 2002 BONDS The current refunding is being undertaken for the purpose of effectuating debt service cost savings to the City. The monies required to refund the Refunded Bonds will be derived from the proceeds of the sale of the Series 2002 Bonds and other legally available funds of the City. Such monies will be irrevocably deposited with Wells Fargo Bank, National Association, as escrow agent for the Refunded Bonds (the "Escrow Agent") pursuant to an Escrow Deposit Agreement (the "Escrow Deposit Agreement"), by and between the City and the Escrow Agent. The Escrow Deposit Agreement requires the Escrow Agent to use certain of the monies held in escrow thereunder to purchase direct obligations of the United States of America (such direct obligations of the United States of America are referred to collectively as the "Government Obligations"). The Government Obligations will mature at such times in such amounts so that sufficient monies will be available from such maturing principal, together with interest income from the Government Obligations, and cash balances, if any, to make payments of principal of, redemption premium and interest on the Refunded Bonds on February 1, 2003. See "VERIFICATION OF MATHEMATICAL COMPUTATIONS", herein. The Series 2002 Bonds shall be issued at a lower net average interest cost rate than the net average interest cost rate of the Refunded Bonds and, as a result of the current refunding of the Refunded Bonds, the City and its taxpayers will realize economic benefits. SOURCES AND USES OF FUNDS The proceeds to be received from the sale of the Series 2002 Bonds are expected to be applied as follows: Sources of Funds Principal Amount of Series 2002 Bonds ......................................................................... Less Original Issue Discount ............................................................................................ Accrued Interest .................................................................................................................. Other Legally Available Monies ....................................................................................... Total Sources of Funds ......................................................... Uses of Funds Deposit to Interest Account (1) Deposk to the Escrow Fund (2) ....................................................................................... Underwriter's Discount ...................................................................................................... Costs of Issuance(3) ........................................................................................................... Total Sources of Funds ......................................................... (2) (3) Represents Accrued Interest. To be used to purchase Government Obligations. Includes a portion of the premium for the Municipal Bond Insurance Policy. DESCRIPTION OF THE SERIES 2002 BONDS The Series 2002 Bonds will be dated December 1, 2002 and will mature on February 1 of the years and in the principal amounts set forth on the inside cover page hereof. The Series 2002 Bonds will be initially issued only in the form of fully registered bonds in denominations of $5,000 or any integral multiple thereof. Interest on the Series 2002 Bonds is payable semiannually commencing February 1, 2003, and each August 1 and February 1 thereafter at the rates per annum set forth on the inside cover page hereof. Wells Fargo Bank, National Association, having a designated corporate trust office in Coral Springs, Florida, will serve as bond registrar ("Bond Registrar") and paying agent (the "Paying Agent") for the Series 2002 Bonds. The Series 2002 Bonds will be issued as fully registered Bonds and, when issued, will be registered in the name of Cede & Co., as nominee of the Depository Trust Company, New York, New York ("DTC"). So long as the Series 2002 Bonds shall be in book-entry form, the principal of and interest on such Series 2002 Bonds is payable by check or draft mailed or wire transfer to Cede & CO., as nominee of DTC and registered owners thereof for redistribution by DTC to the DTC Participants (as herein defined) and in turn to Beneficial Owners (as herein defined) as described below under "Book-Entry Only System". If the book-entry system should be discontinued, certificated Series 2002 Bonds will be issued to the Beneficial Owners, who will then become the registered owners thereof. See "Discontinuance of Book-Entry OnlySystem" below. Book-Entry Only System The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Series 2002 Bonds under a book-entry system with no physical distribution of the Series 2002 Bonds made to the public. The Series 2002 Bonds will initially be issued as fully- registered securities, registered in the name of Cede & Co. (DTC's partnership nominee), or such other name as may be requested by an authorized representative of DTC. One fully-registered Series 2002 Bond certificate will be issued for the aggregate principal amount of each maturity of the Series 2002 Bonds and will be deposited with DTC~ DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "cleating corporation" within the meaning of the New York Uniform Commercial Code, and a "cleating agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC holds and provides asset servicing for over 2 milh'on issues of U.S. and non-U.S, equity issues, corporate and municipal debt issues, and money market instruments from over 85 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Direct Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include both U.S. and non- U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation 3 ("DTCC"). DTCC, in mm, is owned by a number of its Direct Participants and members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation and Emerging Markets Clearing Corporation (NSC~ GSCC, MBSCC and EMC~ also subsidiaries of DTCC), as well as bythe New York Stock Exchange, Inc., the American Stock Exchange, LLC and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-U.S, securities brokers and dealers, banks and trust companies that clear through or maintain a custodial rehtionship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The rules applicable to DTC and its Direct and Indirect Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www. dtcc.com. Purchases of the Series 2002 Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Series 2002 Bonds on DTC's records. The ownership interest of each actual purchaser of each Series 2002 Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 2002 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Series 2002 Bonds is discontinued. To facilitate subsequent transfers, all Series 2002 Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC The deposk of Series 2002 Bonds with DTC and their registration in the name of Cede & Co., or such other DTC nominee, does not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2002 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Series 2002 Bonds may wish to take certain steps to augment transmission to them of notices of significant events with respect to the Series 2002 Bonds, such as redemptions, tenders, defaults and proposed amendments to the Series 2002 Bond documents. For example, Beneficial Owners of Series 2002 Bonds may wish to ascertain that the nominee holding the Series 2002 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners, or in the alternative, Beneficial Owners may wish to provide their names and addresses to the Paying Agent and request that copies of the nonces be provided direcdy to them. 4 Redemption notices shall be sero to DTC If less than all of the Series 2002 Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the Series 2002 Bonds unless authorized by a Direct Participant in accordance with DTC's procedures. Under its usual procedures, DTC mails an Omnibus Proxyto the Paying Agem as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Series 2002 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal, premium, if any, and interest payments on the Series 2002 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized represemative of DTC, DTC's practice is to credk Direct Participants' accounts' upon DTC's receipt of funds and corresponding detail information from the City or Paying Agent, on the payable date in accordance with their respective holdings shown on DTC's records. Payments by Direct and Indirect Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Direct and Indirect Participants and not of DTC (or ks nominee), the City or the Paying Agent subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium, if any, and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Paying Agent, disbursement of such payments to Direct Participants shall be the respomibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities deposkory with respect to the Series 2002 Bonds at any time by giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Series 2002 Bond certificates are required to be prepared, executed and delivered. The City may decide to discontinue use of the system of book-emry transfers through DTC (or a successor securities depository,. In that event, either a successor securities depository will be selected bythe City or Series 2002 Bond certificates will be prepared, executed and delivered. In the evem of insolvency of DTC, if DTC has insufficiem securities in its custody (e.g., due to theft or loss) to satisfy the claims of its Direct Participants with respect to deposited securities and is unable by application of (i) cash deposits and securities pledged to DTC to protect DTC against losses and liabilities, (ii) the proceeds of insurance maintained by DTC and/or its Direct Participants or Indirect Participants or ('fii) other resources, to obtain securities necessary to eliminate the insufficiency, no assurances can be given that Direct Participants will be able to obtain all of their deposited securities. THE CITY, THE BOND REGISTRAR AND THE PAYING AGENT WILL NOT HAVE ANY RESPONSIBILITY OR OBLIGATION TO DTC PARTICIPANTS, BENEFICIAL OWNERS OR OTHER NOMINEES OF SUCH BENEFICIAL OWNERS FOR (A) SENDING TRANSACTION STATEMENTS; (B) MAINTMNING, SUPERVISING OR REVIEWING THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DTC PARTICIPANT OR OTHER NOMINEES OF SUCH BENEFICIAL OWNERS; (C) PAYMENT OR THE TIMELINESS OF PAYMENT BY DTC TO ANY DTC PARTICIPANT, OR BY ANY DTC PARTICIPANT OR OTHER NOMINEES OF BENEFICIAL OWNERS TO ANY BENEFICIAL OWNER, OF ANY AMOUNT DUE IN RESPECT OF THE PRINCIPAL OF OR REDEMPTION PREMIUM, IF ANY, OR INTEREST ON BOOK-ENTRY SERIES 2002 BONDS; (D) DELIVERY OR TIMELY DELIVERY BY DTC TO ANY DTC PARTICIPANT, OR BY ANY DTC PARTICIPANT OR OTHER NOMINEES OF BENEFICIAL OWNERS TO ANY BENEFICIAL OWNERS, OF ANY NOTICE (INCLUDING NOTICE OF REDEMPTION) OR OTHER COMMUNICATION WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE RESOLUTION TO BE GIVEN TO HOLDERS OR OWNERS OF BOOK-ENTRY SERIES 2002 BONDS; (E) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE EVENT OF ANY PARTIAL REDEMPTION OF BOOK- ENTRY SERIES 2002 BONDS, OR (F) ANY ACTION TAKEN BY DTC OR ITS NOMINEE AS THE REGISTERED OWNER OF THE BOOK-ENTRY SERIES 2002 BONDS. The information in this section concerning DTC and DTC's book-entry system has been obtained from DTC and other sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. Discontinuance of Book-Entry Only System General. In the event that the book-entry system is discontinued and the Beneficial Owners become the registered owners of the Series 2002 Bonds, interest on each Series 2002 Bond will be paid by check or draft of the Paying Agent mailed to the person in whose name the Series 2002 Bond is registered, on the fifteenth (15 TM) day of the month next preceding each interest payment date (the "Record Date"), provided however, at the request of any holder of at least $1,000,000 aggregate principal amount of a Series 2002 Bond, interest may be payable by wire transfer to the bank account number on file with the Paying Agent on or before the Record Date. Principal of, and redemption premium, if any, on the Series 2002 Bonds will be payable upon presentation and surrender of the Series 2002 Bonds at the designated corporate trust office of the Paying Agent. Negotiability, Registration and Cancellation. At the option of any registered owner of the Series 2002 Bonds and upon surrender at the designated corporate trust office of the Bond Registrar with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or his duly authorized attorney and upon payment by such holder of any charges which the Bond Registrar or the City must make, the Series 2002 Bonds may be exchanged for Series 2002 Bonds of the same maturity of any other authorized denominations. The Bond Registrar shall keep books for the registration of Series 2002 Bonds and for the registration of transfers of Series 2002 Bonds as provided in the Resolution. The Series 2002 Bonds shall be transferable by the registered owner thereof in person or by his attorney duly authorized in writing only upon the books of the City kept by the Bond Registrar and only upon surrender thereof together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered holder or his authorized attomey. Upon the transfer of any such Series 2002 Bonds, the City shall issue in the name of the transferee a new Series 2002 Bond or Series 2002 Bonds. The City, the Paying Agent and the Bond Registrar shall deem and treat the person whose name any Series 2002 Bond shall be registered upon the books kept by the Bond Registrar as the absolute owner of such Series 2002 bond, whether such Series 2002 Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Series 2002 Bond as the same becomes due and for all other purposes. All such payments so made to any such registered holder or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Series 2002 Bond to the extent of the sum or sums so paid, and neither the City, the Paying Agent, nor the Bond Registrar shall be affected by any notice to the contrary. Transfer and Exchange. In all cases in which the privilege of exchanging Series 2002 Bonds or transferring Series 2002 Bonds is exercised, the City shall execute and the Bond Registrar shall authenticate and deliver Series 2002 Bonds in accordance with the provision of the Resolution. All Series 2002 Bonds surrendered in any such exchanges or transfers shall forthwith be delivered to the Bond Registrar and cancelled by the Bond Registrar in the manner provided by the Resolution. There shall be no charge for any such exchange or transfer of Series 2002 Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to pay tax, fee or other governmental charges required to be paid with respect to such exchange or transfer. Neither the City nor the Bond Registrar shall be required to transfer or exchange Series 2002 Bonds for a period from the Record Date to the next ensuing payment date on such Series 2002 Bonds. Redemption The Series 2002 Bonds are not subject to optional redemption or mandatory sinking fund redemption prior to their stated maturity. SECURITY FOR THE SERIES 2002 BONDS . Pledge of Ad Valorem Taxes The Series 2002 Bonds are general obligations of the City for which its full faith, credit and taxing power have been irrevocably pledged. The Series 2002 Bonds are payable from unlima'ted ad valorem taxes levied on all taxable property located in the City (excluding homestead exemptions) as required by applicable law. The taxes assessed, levied and collected for the security and payment of the Series 2002 Bonds are required, pursuant to the terms of the Resolution, to be assessed, levied and collected in the same manner and at the same time as other taxes, and the proceeds of said taxes, except as described above and in the Resolution, are to be applied solelyto the payment of the principal of, premium, if, any, and interest on the Series 2002 Bonds. All ad valorem taxes collected for the Series 2002 Bonds shall be deposited in a special fund known as the "Sinking Fund" which was created and established by the Resolution. Moneys on deposit in the Sinking Fund will be used solely for the payment of principal of, redemption premium, if any, and interest due on the Series 2002 Bonds. Assessments Under Florida law, all taxable real property and personal property must be assessed at fair market value, with some exceptions. Real and personal property valuations are determined each year as of January 1 by the Palm Beach County Property Appraiser's office. The assessment roll for real property is prepared between January and July 1, and each taxpayer is given notice by mail of its proposed assessed property value. The property owner has the right to file an appeal with the Value Adjustment Board, which considers petitions renting to assessments and exemptions. A property owner who objects to a determination by the Value Adjustment Board may file an appeal in Circuit Court. The Value Adjustment Board certifies the assessment roll upon completion of the hearing of all appeals, other than those to the Circuit Court. Millage rates are then computed by the various taxing authorities and certified to the Property Appraiser, who applies the millage rates to the assessment roll to create the tax roll. The tax roll is then turned over to the Tax Collector for collection. The Florida Constitution entitles each real property owner who is a permanent resident of the State as of January 1 to a $25,000 homestead exemption on his or her primary residential property. In addition, the following uses of real property are generally exempt from ad valorem taxation: religious, educational, charitable, scientific, literary and governmental. There are also special exemptions for widows, aged persons and disabled veterans. The tax on personal property covers only tangible personal property and exempts, among other things, household goods and personal effects and inventory. Collections All real and personal property taxes are due and payable on November 1 of each year, or as soon thereafter as the tax roll is certified and delivered to the Tax Collector. A notice is mailed to each property owner on the tax roll for taxes levied by the County, school board and other taxing authorities. Taxes may be paid upon receipt of such notice, with discounts at the rate of 4% if paid in the month of November, 3% if paid in the month of December, 2% if paid in the month of January; and 1% if paid in the month of February. Taxes paid during the month of March are without discount. All unpaid real and personal property taxes become delinquent on April 1 of the year following the following the year in which the taxes are levied. Delinquent Taxes In the event of a delinquency in the payment of taxes on real property, the County Tax Collector is required to sell tax certificates on such property to the person who pays the delinquent taxes and interest and certain costs and charges relating thereto, and who accepts the lowest interest rate per annum to be borne by the certificates (which shall in no event be more than eighteen percent (18%) per annum). Delinquent taxes may be paid by a taxpayer prior to the date of sale of a tax certificate by the payment of such taxes, together with interest and all costs and charges relating thereto. Tax certificates are sold by public bid, and in case there are no bidders, the certificate is issued to the County without payment of the delinquent taxes in which the assessed lands are located. Proceeds from the sale of tax certificates are required to be used to pay taxes, interest, costs and charges on the hnd described in the certificate. County-held tax certificates may be purchased, and any tax certificate may be redeemed, in whole or in part, by any person at any time before a tax deed is issued or the property is phced on the list of lands available for sale, at a price equal to the face amount of the certificate or portion thereof, together with all interest, costs, and charges due. The proceeds of such a redemption are paid to the County Tax Collector who transmits to the holder of the certificate such proceeds less service charges, and the certificate is cancelled. Any holder, other than the County, of a tax certificate which has not been redeemed has seven (7) years from the date of issuance of the tax certificate during which to act against the land that is the subject of the tax certificate. After an initial period ending two (2) years from April 1 of the year of issuance of a tax certificate, dttfing which period actions against the land are held in abeyance (except with respect to Coun~held certificates) to allow for sales and redemptions of tax certificates, the holder of a certificate may apply for a tax deed to the subject land. The applicant, other than the County, is required to pay to the County Tax Collector all amounts required to redeem or purchase all outstanding tax certificates not held by the applicant covering the land, any omitted taxes or delinquent taxes, current taxes, and interest if due, covering the hnd. If the County holds a tax certificate and has not succeeded in selling k, the County must apply for a tax deed within two (2) years after April 1 of the year of issuance. The County pays costs and fees to the County Tax Collector but not any amount to redeem any other outstanding certificates covering the land. Thereafter, the property is advertised for public sale. In any such public sale, the private holder of the tax certificate who is seeking a tax deed for non-homestead property is deemed to submit a minimum bid equal to the amount required to redeem the tax certificate, charges for the cost of sale, redemption of other tax certificates on the hnd, and the amount paid by such holder in applying for the tax deed, plus interest thereon. In the case of homestead property, the bid is also deemed to include an amount equal to one-half (1/2) of the latest assessed value of the homestead. If there are no higher bidders, the holder receives fide to the land and the amounts paid for the certificate and in applying for a tax deed are credited towards the purchase price. If there are higher bidders, the holder may enter the bidding. The highest bidder is awarded tide to the land. The portion of the proceeds of such sale needed to redeem the tax certificate (and all other amounts paid by such holder in applying for a tax deed), plus interest, are forwarded to the holder thereof or credited to such holder if such holder is the successful bidder. Excess proceeds are distributed first to satisfy governmental liens against the land and then to the former tide holder of the property (less service charges), lienholders of record, mortgagees of record, vendees of recorded contracts for deeds, and other lienholders and any other person to 9 whom the land was assessed on the tax roll for the year in which the land was assessed, all as their interests may appear. If there are no bidders at the public sale, the County may at my time within ninety (90) days from the date of offering for public sale purchase the hnd for a statutorily prescribed minimum bid. After ninety (90) days have passed, any person, or governmental unit may purchase the hnd by paying the amount of the minimum bid. Seven (7) years from the date of offering for public sale, unsold lands escheat to the County. For a discussion of the constitutional limitation on the annual increase in assessed valuation of homestead (primary residence) property, see "THE CITY-State Assessment Cap" herein. TAX TABLES PRINCIPAL TAXPAYERS Taxpayer St. Stephen Limited Partnership atadon Club Office Depot, Inc. Delray Intracoastal Ocean Property LTD Palm Beach County Health Facilities Morse Operations, Inc. Depot Realty Arbors Associates, Ltd. Minto Builders Florida, Inc. Vinings of DelrayBeach Apartments 2001 Percentage Taxes of Total Levied Taxes Levied {1) $796,979 2.82% 780,016 2.76% 749,562 2.66% 607,053 2.15% 533,173 1.89% 489,052 1.73% 474,603 1.68% 472,209 1.67% 416,173 1.47% 392,555 1.39% 381,570 1.35% $6.092.94~5 21.57% Source: Comprehensive Annual Financial Report of the Citydated September 30, 2001. (1) Total taxes levied for fiscal year 2001 are $28,226,628. 10 CITY OF DELRAY BEACH, FLORIDA ASSESSED VALUE OF TAXABLE PROPERTY (1) LAST TEN FISCAL YEARS Personal Fiscal Real Property Property Centrally Total Year Ended Assessed Value Assessed Value Assessed Value Assessed Value 1993 $2,314,958,934 $154,923,605 $ 988,348 $2,470,870,887 1994 2,273,414,571 161,191,710 874,344 2,435,480,625 1995 2,285,093,258 182,359,842 1,080,285 2,468,533,385 1996 2,345,831,009 194,562,246 1,190,016 2,541,583,271 1997 2,415,411,016 214,958,684 1,180,501 2,631,550,201 1998 2,526,205,305 231,129,006 1,602,085 2,758,936,396 1999 2,726,830~16 235,458,142 1,538,111 2,963,826,969 2000 2,908,069,980 260,128,321 1,625,553 3,169,823,854 2001 3,108,896,577 283,054,206 1,622,853 3,393,573,636 2002 3,468,908,654 289,581,133 1,589,665 3,760,079,452 Source: Palm Beach CountyProperty Appraiser's Office. (1) Not Audited. CITY OF DELRAY BEACH, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Fiscal Total Total Outsta~rling Year Current Percent Delinquent Property Collections Outstanding Delinquent Ended Net Tax Tax Of Levy Tax Tax as a % of Delinquent Taxes of % of 9/30 Levy (1) Collections Collected Collections Collections Current Levy Taxes Current Le.vy 1993 $17,160,647 $16,935,644 98.69% $80,336 $17,015,980 99.16% $640,208 3.73% 1994 18,888,080 18,712,867 99.07 61,001 18,773,868 99.40 708,344 3.75 1995 18,994,194 18,837,457 99.17 113,520 18,950,977 99.77 727,734 3.83 1996 19,422,203 19,297,375 99.36 76,933 19,374,308 99.75 770,330 3.97 1997 20,004,670 19,910,114 99.53 36,456 19,946,570 99.71 824,842 4.12 1998 20,821,315 20,731,763 99.57 323,954 21,055,717 101.12 590,440 2.83 1999 22,099,064 21,996,762 99.54 35,853 22,032,615 99.70 652,726 2.95 2000 23,465,518 23,345,095 99.49 84,164 23,429,259 99.85 678,916 2.89 2001 26,105,220 25,968,855 99.48 74,076 26,042,931 99.76 729,262 2.79 2002 29,084,111 28,938,206 99.50 73,040 29,011,246 99.75 792,294 2.72 Source: Comprehensive Annual Financial Report of DelrayBeach, September 30, 2001. Note: All property taxes are assessed and collected by Palm Beach County without charge to the Gty, and collections are distributed in full as collected. (1) Tax Levy net of allowable discounts. 11 CITY OF DELRAY BEACH, FLORIDA PROPERTY TAX RATES OF ALL OVERLAPPING GOVERNMENTS Last Ten Tax Years (Per $1,000 of Assessed Value) Palm South Fiscal Beach Florida Year Palm Health Water Ended General Debt City School Beach Care Management Sept. 30 Fund Service Total District County District District Total 1994 6.8600 1.1400 8 0000 10.0630 4.5499 1 4750 0.5970 24.6849 1995 6.8800 1.0700 7.9500 10.1850 4.5193 1.4500 0.5970 24.7013 1996 6.8700 1.0300 7.9000 9.8170 4.5191 1.4500 0.6470 24.3331 1997 6.9500 0.9000 7.8500 9.7880 4.5191 1.2000 0.6720 24.0291 1998 6.9500 0.8500 7.8000 9.5570 4.6000 1.1600 0.6970 23.8140 1999 6.9100 0.7900 7.7000 9.6820 4.6000 1.0500 0.6970 23.7290 2000 6.9100 0.7400 7.6500 9.0430 4.6000 0.9750 0.6970 22.9700 2001 7.2600 0.6900 7.9500 8.9180 4.6000 1.0250 0.6970 23.1900 2002 7.3700 0.6300 8.0000 8.9480 4.5500 1.1500 0.6970 23.3450 2003 7.4400 0.5600 8.0000 8.7790 4.8084 1.1300 0.6970 23.4144 Tax rate limits: Scope of tax rote limit Taxes due: Taxes delinquent: Discount Allowed: Penalties for delinquency:. Tax Collector: Tax Collector's Commission: Ten mills per Florida Statute 200.081 (one mill is $1 per $1,000 assessed value). No municipality shall levy ad valorem taxes for real and tangible personal property in excess of ten mills of the assessed value, except for special benefits and debt service on obligations issued with the approval of those taxpayers subject to ad valorem taxes. March 31 4% November, 3% December, 2% January, 1% March 3% plus advertising costs after April 1 Palm Beach County None Source: Comprehensive Annual Financial Report of DelrayBeach, September 30, 2001, and Finance Departmem of the City. 12 BOND INSURANCE Bond Insurance Policy Concurremly with the issuance of the Series 2002 Bonds, Financial Security Assurance Inc. ("Financial Security") will issue its Municipal Bond Insurance Policy for the Bonds (the "Policy"). The Policy guarantees the scheduled payment of principal of and interest on the Series 2002 Bonds when due as set forth in the form of the Policy included as in Appendix D to this Official Statement. The Policy is not covered by any insurance security or guarar~_ty fund established under New York, California, Connecticut or Florida insurance law. Financial Security Assurance Inc. Financial Security is a New York domiciled insurance company and a wholly owned subsidiary of Financial Security Assurance Holdings Ltd. ("Holdings"). Holdings is an indirect subsidiary of Dexia, S.2~, a publicly held Belgian corporation. Dexia, S.A., through its bank subsidiaries, is primarily engaged in the business of public finance in France, Belgium and other European countries. No shareholder of Holdings or Financial Security is liable for the obligations of Financial Security. At September 30, 2002 Financial Security's total policyholders' surplus and contingency reserves were approximately $1,728,433,000 and its total nneamed prermum reserve was approximately $972,390,000 in accordance with statutory accounting principles. At September 30, 2002, Financial Security's total shareholder's equity was approximately $1,928,564,000 and its total net unearned premium reserve was approximately $814,684,000 in accordance with generally accepted accounting principles. The financial statements included as exhibits to the annual and quarterly reports filed by Holdings with the Securities and Exchange Commission are hereby incorporated herein by reference. Also incorporated herein by reference are any such financial statements so filed from the date of this Official Statement until the termination of the offering of the Series 2002 Bonds. Copies of materials incorporated by reference will be provided upon request to Financial Security Assurance Inc.: 350 Park Avenue, New York, New York 10022, Attention: Communications Department (telephone (212) 826-0100). The Policy does not protect investors against changes in market value of the Series 2002 Bonds, which market value may be impaired as a result of changes in prevailing interest rates, changes in applicable ratings or other causes. Financial Security makes no representation regarding the Series 2002 Bonds or the advisability of investing in the Series 2002 Bonds. Financial Security makes no representation regarding this Official Statement, nor has it participated in the preparation thereof, except that Financial Security has provided to the City the information presented under this caption for inclusion in this Official Statement. 13 THE CITY Location and Size The City, located on Florida's Gold Coast, is the fourth largest city in Palm Beach County with an estimated population of 61,527 (as of 2002) and sixteen square miles within its municipal boundaries. Lying 18 miles south of West Palm Beach and 50 miles north of Miami along the Atlantic Ocean, the City has been able to participate in the growth of South Florida and benefit from the economic growth of this area in general. Brief Description The City is primarily a resort and residential community of well-kept homes and recent developments of condominium apartments. The City has many recreational facilities including tennis, golf, boating, fishing, water sports, and lawn bowling. During the winter months, the hotels, motels, and restaurants fill to capacity with visiting tourists and winter residents. The City's famous mile-long beach is an attraction for residents and tourists. The Intracoastal Waterway provides boat dockage, and the Boynton Inlet gives access to the Atlantic Ocean for sak water drift fishing. Lake Ida, adjacent to the City, also provides fishing and water skiing. Budgeting, Accounting and Auditing The City follows these procedures in establishing the budgetary data reflected in its general purpose financial statements: 1. Prior to September 1, the City Manager submits to the City Commission a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted at City Hall to obtain taxpayer comments. 3. The City advises the County Property Appraiser of the proposed millage rate and the day, time and place of the public hearing for budget acceptance. budget. The public heating is held to obtain final taxpayer input and to adopt the final ordinance. The budget and rehted millage rates are legally enacted through passage of an 6. Changes or amendments to the total budgeted expenditures of the City or a department must be approved by the City Commission; however, changes within a department which do not affect the total maybe approved at the administrative level. Accordingly, the legal level of control is at the department level. All encumbered balances lapse at year end. The reported budgetary data represents the final appropriated budget after amendments adopted by the City Commission. Appropriated budgets have been legally adopted for the General Fund, Law Enforcement Fund, Community Development Fund, Beautification Fund, Water and 14 Sewer Fund, Municipal Golf Course Fund, Lakeview Golf Course Fund, City Marina Fund, Stormwater Fund, Garage Fund and the Insurance Fund. Appropriated budgets have been legally adopted for these funds on a modified accrual basis except that for budgetary purposes, current year encumbrances are treated as expenditures. Non-appropriation budgets, which are not legally adopted or legally required to be adopted are prepared for the Developer Land Contribution Fund and the General Construction Fund. The Finance Department monitors the expenditures of these funds through the use of budgets prepared by management. Operating Budget for Fiscal Year Ended September 30, 2001 Total budgeted operating revenues and other financing sources for the General Fund for fiscal year ending September 30, 2001 are $58,028,390, see "Appendix B" City of Delray Beach, Florida General Purpose Financial Statements and other Information for the Fiscal Year ended September 30, 2001. Each month of the current fiscal year, actual revenues and expenditures of the General Fund are compared with budgeted amounts by line item. Variations of actual revenues and expenditures compared to budgeted amounts which are unfavorable are referred to the respective department heads for explanations and possible amendment. A summary report of the status of the budget is submitted to the City Manager for review and action. At the close of the 2002 fiscal year (September 30, 2002), total revenues (unaudited) were 101% of the annual budget amount and total expenditures (unaudited) were 101% of the annual budget amount. State Assessment Cap On November 3, 1992, the voters of the State of Florida passed an amendment to Article VII, Section 4 of the Florida constitution establishing a limitation of the lesser of 3% or the increase in the Consumer Price Index during the relevant year, on the annual increase in assessed valuation of homestead (primary residence) property, except in the event of a sale thereof during such year, and except as to improvements thereto during such year. The amendment did not alter any caps on millage rates otherwise set forth in the Florida Constitution. Since the City has authority to increase the millage levy for voter approved general obligation debt to the amount necessary to satisfy the related debt service requirements, the amendment does not adversely affect the ability of the City to pay the principal of or interest on the Series 2002 Bonds. However, in periods of high inflation, those municipalities whose operating millage levies are approaching the constitutional cap and whose tax base consists largely of residential real estate, may, as a result of the above-described am~endrnent, need to phce greater reliance on non-ad valorem revenue sources to meet their operating needs. Further information on the City is contained in Appendix A - "General Information Concerning the City of Delray Beach, Florida and Palm Beach County". 15 LEGAL DEBT LIMITATIONS The Florida Constitution Article VII, Section 12 of the Florida Constitution requires the approval of a majority of all qualified electors residing within the municipal boundaries of a municipality prior to the issuance by that municipality of bonds payable from ad valorem taxes assessed bythe municipality and maturing more than 12 months after the bonds are issued unless such bonds are issued as refunding bonds which achieve a net interest cost savings between the interest paid on the bonds which are refunded and the new bonds. Once the bonds, referred to as general obligation bonds, are approved by referendum, the Florida Constitution does not provide a limit on the amount of ad valorem taxes the Gty maylevy to pay principal and interest on such bonds. DEBT SUMMARY The information under this heading is subject in all respects to the-more detailed financial information in the audited financial statements of the City. See, Appendix B - "City of Delmy Beach, Florida General Purpose Financial Statements and other Information for the Fiscal Year Ended September 30, 2001". Selected Debt Data The following tables provide a description of the City's outstanding general obligation bonds, including their principal and interest requirements, information regarding its direct and overlapping debt, financial parameters and financial ratios. 16 COMBINED DEBT SERVICE REQUIREMENT CITY OF DELRAY BEACH, FLORIDA GENERAL OBLIGATION BONDS Series 2002 Annual Outstanding Total Series General Period General 2002 Obligation Ending Obligation Principal Interest Debt Service Debt Service (September 30) Debt Service (1) (1) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $ 492,970.00 488,775.00 492,780.00 TOTAL $1,969,165.00 Source: City of DelrayBeach Financial Statements and Finance Departmem. (1) Excludes debt service on the Series 1993 Bonds which are refunded bythe Series 2002 Bonds. 17 DIRECT DEBT CITY OF DELRAY BEACH, FLORIDA DIRECT AND OVERLAPPING DEBT (Principal Amounts as of September 30, 2002) General Enterprise Obligation Special Funds Revenue Bonds Purpose Bonds Bonds General Obligation Bonds, Series 1992 (1) General Obligation Bonds, Series 2002 (2) $1,750,000 16,955,000 Utilities Tax Revenue Refunding Bonds, Series 2002 (3) 15,595,000 Revenue Bonds, Series 1999 Revenue Bonds, Series 2000 2,505,000 8,405,000 Interim Financing: Revenue Bonds, Series 2000 Revenue Bonds, Series 2000 19,042,902 5,828,000 Water and Sewer Revenue Bonds, Series 1993 Water and Sewer Revenue Bonds, Series 1997 Water and Sewer Revenue Bonds, Series 1999 21,864,000 15,030,000 2,825,000 SUBTOTAL 18,705,000 51,375,902 39,719,475 Interim Financing Payback in FY03: Federal, State and Local Grants Other Contractual Agreements (3,751,942) (18,840,000) TOTAL DIRECT DEBT $18:705:000 $28,783:960 $39.719.47~5 Source: City of Delray Beach, Florida Financial Records. (1) (2) (3) The Series 1992 Bonds and a portion of the Series 1993A Bonds and Series 1993B Bonds rem outstanding after the issuance of the Series 2002 Bonds being offered by this Official Statement. The Bonds being offered by this Official Statemem, subject to change (Preliminary. The Utilities Tax Revenue Refunding Bonds, Series 2002, being offered simultaneously with the Series 2002 Bonds being offered bythis Official Statement. The City supports debt service of the Utilities Tax Revenue Bonds, Series 2002 from revenues of the DelrayBeach Municipal Golf Comse Funds, the Water and Sewer Funds and the Utility Tax Fund. 18 The following table reflects the overlapping general obligation debt for the City as of September 30, 2002. Debt Estimated September 30, Percent Overlapping 2002 Applicable Debt Palm Beach CounW: Environmental Sensitive Land 1994 General Obligation Refunding Bonds, Series 1994B General Obligation Refunding Bonds, Series 1998 General Obligation Bonds, Series 1999A General Obligation Bonds, Series 1999B General Obligation Bonds, Series 2001A $8,790,000 5 $ 439,500 39,980,000 5 1,999,000 42,940,000 5 2,147,000 22,415,000 5 1,120,750 66,705,000 5 3,335,250 73,015,000 5 3,650,750 $253,845,000 $12,692,250 Palm Beach County School district: General Obligation Bonds 194,475,000 9,723,750 Total Palm Beach County General Obligation Debt $448.320._~000 Total Overlapping Debt SUMMARY OF DIRECT AND OVERLAPPING DEBT DIRECT DEBT General Obligation Debt Non Self-Supporting Revenue Debt Self-Supporting Revenue Debt TOTAL DIRECT DEBT TOTAL OVERLAPPING DEBT TOTAL DIRECT AND OVERLAPPING DEBT $18,705,000 28,783,960 39,719,475 87,208,435 22,416,000 $109.624.43~5 Source: City of Delray Beach, Florida financial records. 19 FINANCIAL PARAMETERS Population (2002 estimated) Total Assessed Valuation- DelrayBeach (2002 estimated) Total Taxable Assessed Valuation- DelrayBeach (2002 estimated) Total Assessed Valuation - Palm Beach County (2002 estimated) Total Taxable Assessed Valuation - Palm Beach County (2002 estimated) 61,527 $ 4,527,505,719 $ 4,167,822706 $105,094,513,194 $ 88,366,017,237 Sources: Property Appraiser for Palm Beach County. FINANCIAL RATIOS Percent of Taxable Assessed Valuation (Delray Beach) DIRECT DEBT General Obligation Debt Non Self-Supporting Revenue Debt Self Supporting Revenue Debt 0.45% 0.69% 0.95% TOTAL DIRECTDEBT 2.09% TOTAL OVERLAPPING DEBT 0.54% 2.63% TOTAL DIRECT AND OVERLAPPING DEBT Per Capka (Delray Beach) 304.01 467.83 645.56 1,417.40 364.33 1:781.73 20 RATINGS It is expected that Moody's Investors Service, Inc. ("Moody's") and Standard & Poor's, a division of McGraw-I-fill Companies ("S&P") will give the Series 2002 Bonds ratings of "Aaa" and "AAA", respectively on the understanding that the standard policy of municipal bond insurance insuring the total payment of the principal of an interest on the Series 2002 Bonds will be issued by Financial Security upon the issuance of the Series 2002 Bonds. Moody's and SRP have assigned the Series 2002 Bonds underlying ratings of "Al" and "AA-", respectively. Such ratings reflect the view only of the aforesaid credit rating organizations, and an explanation of the significance of these ratings may be obtained only from such rating organization. There is no assurance that such ratings will continue for any given period of time, or that such ratings may not be lowered or withdrawn entirely by the respective rating agency if, in its judgment circumstances so warrant. Any such downward change or withdrawal of either or both such ratings may have an adverse effect on the market price of the Series 2002 Bonds. LEGALITY Certain legal matters in connection with the issuance of the Series 2002 Bonds are subject to the approval of Greenbttrg Tranrig, P.A., West Palm Beach, Florida, Bond Counsel, whose Bond Counsel opinions will be available at the time of delivery of the Series 2002 Bon&. The proposed form of such opinion of Bond Counsel is attached hereto as Appendi~ C. Certain legal matters will be passed upon for the City by its City Attorney, Susan A. Ruby, Esquire, and for the Underwriters by Blank Rome Comisky & McCauley LLP, Boca Raton, Florida and Philadelphia, Pennsylvania. TAX EXEMPTION The Internal Revenue Code of 1986, as amended (the "Code") imposes certain requirements that must be met subsequent to the issuance and delivery of the Series 2002 Bonds for interest thereon to be and remain excluded from gross income for federal income tax purposes. Noncomplhnce with such requirements could cause the interest on the Series 2002 Bonds to be included in gross income for federal income tax purposes retroactive to the date of issue of the Series 2002 Bonds. The City has covenanted in the Resolution to comply with each requirement of the Code necessary to maintain the exclusion of the interest on the Series 2002 from gross income for federal income tax purposes pursuant to Section 103(a) of the Code. In the opinion of Bond Counsel, under existing law, and assuming continuing compliance with the aforementioned covenant, interest on the Series, 2002 Bonds is excluded from gross income for federal income tax purposes. Bond Counsel is also of the opinion that the Series 2002 Bonds are not "specified private activity bonds" within the meaning of Section 57(a) (5) of the Code and, therefore, interest on the Series 2002 Bonds will not be treated as a preference item for purposes of computing the alternative minimum tax imposed by Section 55 of the Code. Interest on the Series 2002 Bonds owned by corporations will, however, be taken into account in determining the alternative minimum tax imposed by Section 55 of the Code on seventy-five percent (75%) of the excess of adjusted current earnings over alternative minimum taxable income (determined without regard to this adjustment and the alternative tax-net operating-loss deduction). 21 Bond Counsel is also of the opinion that interest on the Series 2002 Bonds is exempt from taxation under the existing laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income and profits on debt obligations owned by corporations, banks and savings associations. Bond Counsel is further of the opinion that the difference between the principal amount of the Series 2002 Bonds maturing on and after ,20__, (the "Discount Bonds") and the initial offering price to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters or wholesalers) at which price a substantial amount of such DiscountBonds of the same maturity was sold constitutes original issue discount which is excluded from gross inSome for federal income tax purposes to the same extent as interest on the Series 2002 Bonds. Further, such original issue discount accrues actuarially on a constant interest rate basis over the term of each Discount Bond and the basis of each Discount Bond acquired at such initial offering price by an initial purchaser thereof will be increased of such accrued original, issue discount. The accrual of original issue discount may be taken into account as an increase in the amount of tax-exempt income for purposes of determining various other tax consequences of owning the Discount Bonds, even though there will not be a corresponding cash payment, Owners of the Discount Bonds are advised that they should consult with their own advisors with respect to the state and local tax consequences of owning such Discount Bonds. Bond Counsel has not undertaken to advise in the future whether any events after the date of issuance of the Series 2002 Bonds may affect the tax status of interest on the Series 2002 Bonds. No assurance can be given that future legislation, or amendments to the Code, if enacted into law, will not contain provisions which could directly or indirectly reduce the benefit of the exclusion of the interest on the Series 2002 Bonds from gross income for federal income tax purposes. Furthermore, Bond Counsel expresses no opinion as to any federal, State or local tax hw consequences with respect to the Series 2002 Bonds, or the interest thereon, if any action is taken with respect to the Series 2002 Bonds or the proceeds thereof upon the advice or approval of bond counsel other than Bond Counsel. Although Bond Counsel has rendered an opinion that interest on the Series 2002 Bonds is excluded from gross income for federal income tax purposes, a Bondholder's federal, State or local tax liability may otherwise be affected by the ownership or disposition of the Series 2002 Bonds. The nature and extent of these other tax consequences will depend upon the Bondholder's other items of income or deduction. Without limiting the generality of the foregoing, prospective purchasers of the Series 2002 Bonds should be aware that (~3 Section 265 of the Code denies a deduction for interest on indebtedness incurred or continued to purchase or carry the Series 2002 Bonds or, in the case of a financial institution, that portion of a holder's interest expense allocated to interest on the, Series 2002 Bonds, (ii) with respect to insurance companies subject to the tax imposed by Section 831 of the Code, Section 832(b)(5)(B)(O reduces the deduction for loss reserves by 15 percent (15%) of the sum of certain items, including interest on the Series 2002 Bonds, (ihT interest on the Series 2002 Bonds earned by certain foreign corporations doing business in the United States could be subject to a branch profits tax imposed by Section 884 of the Code, (iv) passive investment income, including interest on the Series 2002 Bonds, may be subject to federal income taxation under Section 1375, of the Code for Subchapter S corporations that have Subchapter C earnings and profits at the close of the taxable year if greater than twenty-five percent 22 (25%) of the gross receipts of such Subchapter S corporation is passive investment income, and (v) Section 86 of the Code requires recipients of certain Sochl Security and certain Railroad Retirement benefits to take into account, in determining the taxability of such benefits, receipts or accruals of interest on the Series 2002 Bonds. Bond Counsel has expressed no opinion regarding any such other tax consequences. UNDERWRITING The Series 2002 Bonds are being purchased by the Underwriter, pursuant to a purchase contract between the City and the Underwriter, as shown on the cover page hereof, from the City at an aggregate purchase price of $ (the face amount of the Series 2002 Bonds less underwriter's discount and original issue discount on certain of the Series 2002 Bonds), plus accrued interest on the Series 2002 Bonds. The Underwriters will be obligated to purchase all the Series 2002 Bonds if any are purchased. Following the initial public offering, the public offering prices may be changed from time to time by the Underwriters. The Series 2002 Bonds maybe offered and sold to certain dealers (including underwriters and other dealers depositing such Bonds into investment trusts) and others at prices lower than the public offering prices set forth on the cover page hereof. CONTINUING DISCLOSURE UNDERTAKING In accordance with the continuing disclosure requirements of Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission (the "SEC-"), the City has agreed pursuant to the terms of the Resolution as follows: (a) The City undertakes and agrees to provide to each nationally recognized municipal securities information reposkory (each a "NRMSIR') and to the State of Florida information depository (the "SID") if and when such a SID is created (~ the City's general purpose financial statements generally consistent with the financial statements presented in Appendix B to this Official Statement, and (h) the information concerning the ad valorem tax collection within the City generally consistent with the infonmtion described under the heading "Security for the Series 2002 Bonds - TAX TABLES". 0a) The Annual Information described in chuse (i) of paragraph (a) above in audited form (for as long as the City provides such financial information in audited form) is expected to be available on or before March 31 of each year for the fiscal year ending on the preceding September 30, commencing March 31, 2003 for the fiscal year ending on the preceding September 30, 2002. The Annual Information referred to in clause 0) of paragraph (a) above in unaudited form (if the audited financial statements are not available or if the City no longer provides such financial information in audited form) will be available on or before March 31 for the fiscal year ending on the preceding September 30. The City also agrees to provide the Annual Information to each registered owner and Beneficial Owner of the Series 2002 Bonds who request such information and pays to the City its costs of reproduction and transmission of such Annual Information. The City agrees to provide to each NRMSIR and the SID, if any, timely notice of its failure to provide the Annual Information. Such notice shall also indicate the reason for such failure and when the City reasonably expects such Annual Information will be available. 23 (c) The Annual Information referred to in chuse (i) of paragraph (a) above and presented in Appendix B to this Official Statement has been prepared in accordance with governmental accounting standards promulgated by the Government Accounting Standards Board, as in effect from time to time, as such principles are modified by generally accepted accounting principles, promulgated bythe Financial Accounting Standards Board, as in effect from time to time, and such other State of Florida mandated accounting principles as in effect from time to time. (d) If, as authorized by paragraph (f) below, the City's undertaking with respect to paragraph (c) above requires amending, the City undertakes and agrees that the Annual Information described in clause (i) of paragraph (a) above for the fiscal year in which the amendment is made will, to the extent possible, present a comparison between the Annual Information prepared on the basis of the new accounting principles and the Annual Information prepared on the basis of the accounting principles described in paragraph (c) above. The City agrees that such a comparison will, to the extent possible, include a qualitative discussion of the differences in the accounting principles and the impact of the change on the presentation of the Annual Information. (e) The City undertakes and agrees to provide in a timely manner, to each NRlVlSIR or to the Municipal Securities Rulemaking Board and to the SID, if any, notice of the occurrence of any of the following events with respect to the Series 2002 Bonds, if material: (i) Principal and interest payment delinquencies; Non-payment related defaults; (ii,) Unscheduled draws on any resen~e account reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers; or their failure to perform; Adverse tax opinions or events affecting the tax-exempt status of the Series 2002 Bonds; (vh) Modifications to rights of Bondholders; (vih) Bond calls (other than scheduled mandatory sinking fund redemptions); (ix) Defeasances of the Series 2002 Bonds; Release, substitution, or sale of property securing repayment of the Series 2002 Bonds; and (xi) Rating changes. 24 Notwithstanding the foregoing, notice of the events described in clauses (8) and (9) above need not be given any earlier than the time notice is required to be given to the registered owners of the Series 2002 Bonds. (f) Notwithstanding any provision of the Resolution to the contrary regarding amendments or supplements, the City undertakes and agrees to amend and/or supplement the City's undertaking (including the amendments referred to in paragraph (d) above) only if: The amendment or supplement is made only in connection with a change in circumstances existing at the time the Series 2002 Bonds were originally issued that arises from (i) a change in law, (h) SEC pronouncements or interpretations, (ih) a judicial decision affecting the Rule or (iv) a change in the nature of the Gty's financial condition; The City's undertaking, as amended, would have complied with the requirements of the Rule at the time the Series 2002 Bonds were originally issued after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and The amendment or supplement does not materially impair the interest of the registered owners and Beneficial Owners of the Series 2002 Bonds as determined by Bond Counsel or by a majority of the registered owners of the Series 2002 Bonds. In the event of an amendment or supplement under the City's undertaking, the City shall describe the same in the next report of Annual Information and shall include, as applicable, a narrative explanation of the reason for the amendment or supplement and its impact, if any, on the financial information and operating data being presented in the Annual Information. (g) The City's undertaking as set forth in the Resolution and as described herein shall terminate if and when the Series 2002 Bonds are paid or deemed paid within the meaning of the Resolution. (h) The City acknowledges that its undertaking pursuant to the Rule set forth in the Resolution and as described herein is intended to be for the benefk of the registered holders and Beneficial Owners of the Series 2002 Bonds and shall be enforceably by such holders and Beneficial Owners; provided that, the holder's and Beneficial Owners' right to enforce the provisions of the City's undertaking shall be limited to a right to obtain specific enforcement of the City's obligations under the Resolution, and any failure by the City to comply with the provisions of the City's undertaking shall not be or constitute a covenant or monetary default with respect to the Series 2002 Bonds under the Resolution. (0 The City reserves the right to satisfy its obligations under the Resolution through agents; and the City may appoint such agents without the necessity of amending the Resolution. 25 The City may also appoint one or more employees of the City to monitor and be responsible for the City's undertaking under the Resolution. (j) "Beneficial Owner" shall mean, for purposes of the City's undertaking, any person which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Series 2002 Bonds (including persons holding Series 2002 Bonds through nominees, depositories or other intermediaries), or (ii) is treated as the owner of any Series 2002 Bonds for federal income tax purposes. The City has not failed to comply with any previous undertaking in a written contract or agreement to provide continuing disclosure pursuant to the Rule. ENFORCEABILITY OF REMEDIES The remedies available to the owners of the Series 2002 Bonds under the Resolution and any policy of municipal bond insurance referred to herein are in many respects depended upon judicial actions which are often subject to discretion and delay. Under existing constitutional and statutory law and judicial decisions, including specifically Title ll of the United States Code, the remedies specified by the Federal Bankruptcy Code, the Resolution, the Series 2002 Bonds and any policy of municipal bond insurance referred to herein may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Series 2002 Bonds (including Bond Counsel's approving opinions) will be qualified as to the enforceability of the various legal instruments, by limitations imposed by bankruptcy, reorganization, insolvency, or other similar laws affecting the rights of creditors or by such principles of equity as the court having jurisdiction may impose with respect to certain remedies which require or may require, enforcement by a court of equity. LITIGATION There is no litigation or controversy of any nature now pending or threatened (i) to restrain, or enjoin the issuance, sale, execution or delivery of the Series 2002 Bonds or (ii) in any way questioning or affecting the validity of the Series 2002 Bonds, the Resolution, any proceedings of the City taken with respect to the authorization, sale or issuance of the Series 2002 Bonds or the pledge or application of any moneys provided for the payment of the Series 2002 Bonds The City is a party from time to time to various law suits, incident to its operations. In the opinion of Susan A~ Ruby, Esquire, City Attorney, there are no pending legal proceedings to which the City is a party, the ultimate disposition of which would have a material adverse effect on the finances or operations of the City or its ability to meet its obligations with respect to the Series 2002 Bonds. GENERAL PURPOSE FINANCIAL STATEMENTS The General Purpose Financial Statements and other information of the City for the fiscal year ended September 30, 2001, are included in Appendix B to this Official Statement. Such excerpts from the City's Comprehensive Annual Financial Report, including the auditor's report thereon, have been included in this Official Statement as public documents and consent from the 26 auditors was not requested. The auditors have not performed any services relating thereto, and are therefore not associated with, the issuance of the Series 2002 Bonds. FINANCIAL ADVISOR The City has retained Public Financial Management, Inc., Orlando, Florida, as financial advisor (the "Financial Advisor") to the City in connection with the preparation of the City's plan of financing and with respect to the authorization and issuance of the Series 2002 Bonds. Although the Financial Advisor assisted in the preparation of this Official Statement the Financial Advisor has not undertaken to make an independent verification or to assume responsibility for the accuracy; completeness or fairness of the information contained in this Official Statement. Public Financial Management Inc. is a financial advisory consulting organization and is not engaged in the business of underwriting, marketing or trading of municipal securities or any other negotiable instruments. VERIFICATION OF MATHEMATICAL COMPUTATIONS The accuracy of (1) the mathematical computations of the adequacy of maturing principal of and interest earned on the Government Obligations to be held in the Escrow Fund to pay, when due or redeemed the principal of, premium, if any, and interest on the Refunded Bonds, and (2) the mathematical computations supporting the conclusion that the Series 2002 Bonds are not "arbkrage bonds" under Section 148 of the Code, will be verified for the City by Causey Demgen & Moore, Inc., independent certified public accountants. Such verification of mathematical computations will be based upon information supplied by the Underwriter. MISCELLANEOUS All information included herein has been provided by the City, except where attributed to other sources. The summaries of and references to all documents, statutes, reports and other instruments referred to herein do not purport to be complete, comprehensive or definitive, and each such reference or summary is qualified in its entirety by reference to each such document, statute, report or other instrument. Copies of all such documents referred to herein are on file with the City Clerk of the City at 100 N.W. First Avenue, Delray Beach, Florida 33444. The information herein al'ts been compiled from official and other sources and, while not guaranteed by the City, is believed to be correct. As far as any statements made in this Official Statement and the appendices attached hereto involve mattes of opinion or of estimates, whether or not expressly stated, they are set forth as such and not as representatives of fact and no representation is made that any of the estimates will be realized. 27 AUTHORIZATION OF AND CERTIFICATION CONCERNING OFFICIAL STATEMENT The delivery of this Official Statement has been authorized by the City Commission. Concurrently with the delivery of the Series 2002 Bonds, the undersigned will furnish their certificate to the effect that, to the best of their knowledge, this Official Statement, other than information provided by DTC and Financial Security did not as of its date, and does not as of the date of delivery of the Series 2002 Bonds, contain any untrue statemem of a material fact or if to state a material fact which should be included therein for the purpose for which this Official Statement is to be used, or which is necessary in order to make the statements contained therein, in the light of the circumstances in which they were made, not misleading. CITY OF DELRAY BEACH, FLORIDA Mayor City Manager 28 APPENDIX A General Information Conceming the City of Delray Beach, Florida and Palm Beach County GENERAL INFORMATION CONCERNING THE CITY OF DELRAY BEACH AND PALM BEACH COUNTY The following ~nformation concerning City of Delray Beach, Florida (the "City"), Palm Beach County, Florida (the "County"), and the State of Florida is included only for the purposes of provichng general background information. The information has been compiled by the City and on behalf of the City, and such compflauon involved oral and written communicauon with various sources as indicated. The reformation in th~s Appendix A is subject to change. CITY OF DELRAY BEACH Introduction The C~ty, appro,,amately 16 square miles in area, is located in the southeast portion of the State of Florida, ~n the southeast section of the County. Incorporated ~n 1911, the C~ty has an esnmated populafon of 61,527 (2002) and an estimated seasonal populatton of 10,694 (2000) based on projecuons by the C~ty's Planmng and Zoning Department. Climate The climate of the C~ty ~s best described as subtropical marine. The average year-round temperature Is 74.1 degrees with the mean wrater temperature at 65.9 degrees and the summer mean temperature at 82.3 degrees. Rainfall occurs year-round, but ~s heaviest in the summer; the average annual rainfall ~s 64.26 roches. The mdd chmate ~s prmaarfly a result of the proxLrmty to the Gulf Stream and the prevathng ocean breezes. City Government The C~ty Commission of the C~ty (the "Commission") xs the principal leg~s~auve and governing body of thc C~p,:. The Comnuss~on's maihng address is 100 N.W. First Avenue, Delray Beach, Florida 33444. The C~ty operates under a comnuss~on-manager form of government. The Mayor, elected every two years, presides over a board of four commission members who are elected to two-year alternanng terms by the community at large. The Cit3' Comnussion appoints the City Manager, C~ty Attorney and certain, general advisory boards. Major departments of the City include: Parks and Recreation, Pubhc Uuhues, Engmeenng, Public Works, C~ty Clerk, Finance, Community Improvement, Human Resources, Pohce, F~re and Planmng & Zoning. The City Manager The chmf admimstrauve officml of the C~ty is the City Manager. Th~s official is directly responsible to the Comm/ssmn for admimstrauon and operation of various chvislons under the Comnusslon and for execuuon of all Commtsston porches. The Ctt3, Manager is also responsible to the Commlssxon for preparauon of the C1u,'s budget and for control of expenditures throughout the budget year. A-1 Education The C~ty is served by four elementary schools, one middle school, and one high school, all operated by the Palm Beach County School Board. Higher education ts available at Palm Beach Commumty College (11 miles to the north), Florida Atlanuc Umvers~ty (11 miles to the south), and South County Technical Center Oust north of the City). Florida Atlanuc Umvers~ty ts a four year and graduate university, accepting junior college transfers for then: last two years. It has six colleges: Business and Public Admimstranon, Educauon, Engineering, Humanmes, Natural Science and Social Science. Masters degrees are offered in all fields. The Palm Beach County School Board operates 74 elementary' schools, 20 middle schools, 16 semor high schools and 10 special schools. Transportation Lying along Florida's Gold Coast between Miami and West Palm Beach, the City has benefited greatly from well-developed transportauon systems servicing all of Florida's southeast coast. There are eight north-south highways which run through Palm Beach County, including U.S. Hlghxvay 1, Congress Avenue, State Road A1A, the Florida TumpLke and Interstate 95. U.S. Highway 1 and Congress Avenue are the main arteries through the City runmng north and south. The Florida Turnpike and Interstate 95 have entrance access at Delray Beach. There are also two radroads, Florida East Coast Railway and Seaboard Coast Line, and four east-west highways to accommodate surface transportanon m Palm Beach Count3,. Bus transportation is also available in the Ctty through the County operated bus system. The Port of Palm Beach, located within 30 miles of the CttT, operates slup terrmnal facilities on approxnnately 90 acres of land located in Ravlera Be, :h, Florida and fronung on Lake Worth, Florida. A 35-foot deep channel to the Lake Worth Inlet pr vtdes access to the port facrhties. Port Everglades, wxthin 50 redes of the Ctty is a major port for crmse and cargo transportation. Commercial an: service is provided at Palm Beach Internauonal Arrport ("PBIA") by major air carriers and commuter airhnes. PBIA ~s fifteen miles to the north of the City. The volume of passenger traffic at PBIA increased from 5,842,594 in 2000 to 5,934,904 tn 2001. PBIA also serves general avmUon traffic, and there are five general aviauon an:ports m the Count3,. The Fort Lauderdale-Hollywood Internauonal Au'port and the MiaIru International Airport are wlthtn 50 miles to the South of the CitT. The City is served by Greyhound Bus Lines which provides transportauon to most malor Florida cities. Amtrak provides passenger rad accommodations and has a stauon stop located in the C~. The City ~s also served by the Tri-County Rail System ("Tri-Rail"). Th-Raft, is a highspeed commuter rail line wl'uch operates regularly scheduled service between Miami and West Palm Beach. Tri-Rail has a station stop located in the City. CITY OF DELRAY BEACH POPULATION ESTIMATES The following table shows the Cxty populanon and the annual average percentage changes from 1980 to 1990 and from year to year from 1990 through 2002. Year C~ty Annual Population Percentage Change 1980 34,329 1990 47,181 37.4% 1991 48,206 2.2 1992 48,346 0.3 1993 48,644 0.6 1994 49,298 1.3 1995 50,195 1.8 1996 52,039 3.7 1997 52,920 1.7 1998 53,471 1.0 1999 53,589 0.2 2000 60,020 12.0 2001 60,645 1.0 2002 61,527 1.5 Sources' U.S. Bureau of the Census as of Apnl 1, for the year~ 1980 and 1990 through 2000, Umvers~ty of Florida, Bureau of Econotmc Bus~ness Research for the years 2001 and 2002, Cxty Planmng and Zomng Department for City populanon esmnates for all other years A-3 CITY OF DELRAY BEACH BUILDING PERMIT ACTIVITY The number of building permits issued for indusmal, commercial and residential construction within the City from 1991 through 2002 and the value of such construcuon is shown below: Industrial and Commercial Construction Residential Construction Fiscal Year Ended Number of September30 Number of Permits Value Units Value 1991 27 $11,767,551 203 $21,348,434 1992 13 8,405,390 403 32,160,179 1993 18 8,193,527 172 20,894,643 1994 8 3,224,875 364 39,818,084 1995 16 5,006,576 242 27,963,390 1996 31 17,796,738 800 52,207,344 1997 34 6,852,230 489 58,382,613 1998 24 9,343,455 291 39,461,414 1999 26 7,850,092 350 39,407,811 2000 42 16,897,724 343 39,410,536 2001 55 27,106,834 536 55,920,946 2002 36 19,886,320 599 59,890,130 Source City of Delray Beach Comprehensive Annual Financial Report for the year ended September 2001 for years 1991 through 2001; Commum%' Improvement Department esumates fc:' 2002 [REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY] A-4 PALM BEACH COUNTY, FLORIDA General Introduction Palm Beach County, Florida was founded m 1909 and encompasses an area of 2,023 square miles. It is located on the south lower east coast of the Florida peninsula, with 46 rmles of Atlanuc Ocean frontage and 25 miles of frontage on Lake Okeechobee. The County has a semi-tropical chmate with an average temperature of 74.5F degrees and an average rainfall of 60.77 roches. These and other natural amemfies, incluchng 88 local, State and Federal recreauonal areas of more than 10 acres and 163 golf courses, have enabled the County to develop a year-around tourist industry. There are 38 incorporated municipahties within the County, nine of which have a population in excess of 25,000. West Palm Beach is the County seat and is the largest city m the County, with a 2001 U.S. Census populauon of 1,154,464. POPULATION GROWTH Population In 2001, Palm Beach County was the thtrd largest county, m the State of Florida in terms of population. Its populauon increased 65.3% in the 1970-1980 decade, 49.7% m the 1980-1990 decade and 23.1% m the 1990-2000 decade. Palm Beach County. Florida United States Year Populations Change Population Change Populauon Change 1994 937,190 2.1% 13,878,905 2.0% 259,718,000 1.0% 1995 962,802 2.7 14,149,317 1.9 262,176,000 .9 1996 981,793 2.0 14,411,563 1.9 266,538,000 1.7 1997 1,003,798 2.2 14,712,365 2 1 267,636,000 .4 1998 1,020,521 1.7 15,475,000 5.2 270,733,000 1.2 1999 1,042,196 2.1 15,322,000 (1.0) 272,190,000 .5 2000(.1 1,131,184 8.5 15,982,378 4.3 275,860,949 1.3 2001 1,154,464 2.1 16,331,739 2.2 285,371,621 3.4 Due to the census, there was an adlustment for the populanon of Palm Beach County. Source: Umvers;ty of Florida, Bureau of Econom;c and Business Research and the U S Bureau of Census Palm Beach Counv,' and Florida data ~s as of April 1 Umted States data is as of October 1 A-5 Age Distribution The age distributton in the County is similar to that of Florida, but chffers significantly with that of the nation. Both the County and Florida have a considerably larger proportion of persons 65 years and olden than the rest of the nauon. PALM BEACH COUNTY POPULATION DISTRIBUTION BY AGE GROUP(i) Age Group 2000 1999 1998 1997 1996 1995 1994 0-14 18% 18% 18% 18% 18% 18% 18% 15-64 59 59 58 58 58 58 58 65+ 23 23 24 24 24 24 24 0) Totals may not add to 100% because of roundmg Source Umverslt)~ of Florida, Bureau of Economic and Business Research and the U.S Bureau of Census Income The folloxving table shows the per capita personal income reported for Palm Beach County, the State of Florida and the United States. PER CAPITA PERSONAL INCOME Palm Beach Count3' Florida U.S. Year Dollars ?/o of Fla. % of U.S. Dollars % of U.S. Dollars 1992 $31,028 156.7% 154.3% $19,797 98.5% $20,105 1993 32,230 156.1 1%.0 20,650 99.3 20,800 1994 33,862 155.5 153.6 21,777 98.8 22,044 1995 36,213 156.5 155.0 23,139 99.1 23,359 1996 38,081 157.4 155.8 24,198 99.0 24,436 1997 38,772 156.3 153.3 24,799 98.1 25,288 1998 40,044 149.2 147.2 26,845 98.7 27,203 1999 41,907 150.8 146.8 27,781 97 3 28,546 Source UmverstU' of Florida, Bureau of Economic and Business Research Note. Data for 2000 and 2001 is not available. A-6 Employment Tourism and agriculture, together with the service industries related to these activities, are the leachng sources of income for the County's residents. Manufacturing, pntnarfly electronics and other high technology products, also play an important role m the County's economy. The table that follows shows the County's esttrnated average annual non-farm employment by economic sector. PALM BEACH COUNTY ESTIMATED AVERAGE ANNUAL NON-AGRICULTURAL EMPLOYMENT BY ECONOMIC SECTOR 2000 1999 1998 1997 1996 All Industries 424,501 406,123 396,371 378,679 367,398 Agriculture Forestry and F:shenes 17,328 18,070 18,590 18,308 17,850 Mming 18 13 14 23 24 Construction 30,415 27,054 26,157 24,789 24,068 Manufacturing 30,715 32,542 30,638 29,926 28,980 Transportation Commumcations and Public Uuhues 16,481 15,916 15,692 15,184 15,316 Wholesale Trade 23,044 21,920 21,821 20,375 19,132 Retail Trade 94,608 92,027 92,112 89,028 88,086 Finance Insurance and Real Estate 33,333 32,312 32,050 29,296 27,830 Services 176,641 164,098 156,819 149,769 143,853 Other 1,918 2,171 2,478 1,982 2,259 Source: Umvers~ty of Florida, Bureau of Economic and Bus:ness Research, based upon data from U S Bureau of the Census, 1998-2001 Florida Stattsncal Abstracts. A-7 The data on County unemployment in the following table represents annual averages. PALM BEACH COUNTY ANNUAL AVERAGE LABOR FORCE AND UNEMPLOYMENT ESTIMATES Unemployment Rates Civilian Palm Beach United Year Labor Force County. Florida States 1995 454,852 6.2% 5.4% 5.6% 1996 461,526 7.0 5.2 5.4 1997 482,486 6.3 4.8 4.9 1998 507,754 5.5 4.3 4.5 1999 543,006 4.8 4.0 3.8 2000 524,708 4.1 3.6 3.8 2001 541,377 5.9 4.5 4.7 Source' Florida Department of Labor and Employment Secun~, Bureau of Labor Market Unemployment Informatton; Labor Stausucs Department Largest Employers The folloxvmg table shoxvs employment at the ten largest private employers in the County. Employees Apphed Cards (Financial - Crecht Cards) Florida Power & Light Company (Utihties) Boca Raton Resort & Club (Hotel) Office Depot (Retail - Office Supphes) The Breakers (Hotel) Siemens Companies (PBX Systems) Palm Beach Newspapers, Inc. (Newspaper Pubhshing) Pratt & Whitney Arrcraft (Jet Engines) Motorola Inc. (Electronic Pagers) Bell South (Unhues) 2,500 2,300 1,850 1,500 1,500 1,500 1,300 1,300 1,300 1,200 Source' Business Development Board of Palm Beach Count, A-8 Tourism Visitors to the Palm Beaches have a significant economic impact on the County. According to the Florida Department of Business Regulauon, there were 231 licensed hotels and motels in the County, having a total of over 15,000 rooms. The Tourism Development Council of Palm Beach County esttmates that over three (3) milhon people visit the County annually and spend approximately $1.1 bilhon. Agriculture Agriculture, together w~th the related service xndustries, is the leachng source of income for the County's residents. The "Glades" region of the County is one of the nauon's most productive agricultural areas. Palm Beach County is the largest agricultural county in Florida and the fourth largest m the United States, w~th annual sales m excess of $2 bilhon. Banking The total deposits of banking institutions m the County as of September 30 of each of the years ~nchcated below xvere as follows: Total Bank Deposits On thousands) Fiscal Year Federal Savings and Commercial Banks Loan Associations 1994 $8,601,035 $7,805,278 1995 9,055,476 7,606,601 1996 9,545,424 6,578,158 1997 9,911,930 5,941,909 1998 10,715,881 6,949,839 1999~ 13,283,898 7,243,923 2000 12,843,897 7,646,519 2001 13,841,347 8,571,953 0) FDIC Webs~te Florida League of F~nancml Instmmons data was not available for 1999. Source- Florida League of Fmancml InstltuUons. A-9 Construction Building permit activity in the County has been reported as follows: BUILDING PERMIT ACTIVITY COUNTY OF PALM BEACH, FLORIDA (DOLLARS IN THOUSANDS) 1996 - 2001 Value of Building Permits Issued Fiscal Res~denual Commercial Tot~ Permit Year Umts Value Value Othe~~) Valuation 1996 9,311 $ 932,675 $ 143,940 323,503 1,400,118 1997 6,060 979,247 188,227 451,299 1,618,773 1998 10,677 1,159,302 227,318 752,374 2,138,994 1999 10,242 1,217,582 394,868 776,015 2,388,465 2000 10,026 1,507,878 360,271 918,780 2,786,929 2001 10,091 1,377,870 484,771 798,827 2,661,467 (t) Hotels, motels, mobile home parks, and m~scellaneous. Source: The Palm Beach County Department of Planning, Zomng and Bmldmg. Retail Sales Total retail sales ~n the County for the last seven calendar years have been as follows for the years mchcated: Retad Sales Year 1994 1995 1996 1997 1998 1999 2000 Retail Sales $21,680,285,125 23,746,717,448 24,818,102,000 27,600,033,550 27,828,417,249 30,213~35,156 34,393,336,408 Source State of Florida, Department of Revenue A-10 APPENDIX B City of Delray Beach, Florida General Purpose Financial Statements and Other Information For the Fiscal Year Ended September 30, 2001 APPENDIX C Form of Approving Opinion of Bond Counsel APPENDIX D Specimen Municipal Bond Imurance Policy Exhibit C CITY OF DELRAY BEACH, FLORIDA and Wells Fargo Bank, National Association as Escrow Agent ESCROW DEPOSIT AGREEMENT DATED AS OF DECEMBER 1, 2002 \\wpb-srv01 ~SANFORDS\400785v04\ 11/25/02\16787 011000 THIS ESCROW DEPOSIT AGREEMENT, made and entered into as of December 1, 2002, by and between the CITY OF DELRAY BEACH, FLORIDA, a municipal corporation of the State of Florida, and its successors and assigns (the "City"), and Wells Fargo Bank, National Association, a national banking association duly organized and existing under the laws of the United States with a corporate trust office in Coral Springs, Florida, as escrow agent hereunder, and its successors and assigns (the "Escrow Agent"): WITNESSETH: WHEREAS, any term not defined in the following recitals shall have the meaning ascribed to such term in Article I hereof; and. WHEREAS, the City Commission of the City of Delray Beach, Florida (the "Commission") did, on the December 12, 1989, adopt Resolution No. 98-89, as amended and supplemented (the "Prior Resolution"); and WHEREAS, the Commission did, on December 3, 2002 adopt Resolution No. 91-02 and Resolution No. 92-02 (collectively, the "2002 Bond Resolution"), for the purpose of authorizing a series of Bonds entitled "City of Delray Beach, Florida General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) (the "Series 2002 Bonds"), in the initial aggregate principal amount of not exceeding $18,000,000; and WHEREAS, the Commission has determined it to be in its best interest to issue the Series 2002 Bonds in an initial aggregate principal amount of $ for the purpose of paying and defeasing the 1993A Bonds and the 1993B Bonds, as such terms are defined in the 2002 Bond Resolution (herein, collectively, the "Refunded Bonds") pursuant to the terms of the Prior Resolution, the 2002 Bond Resolution and this Agreement; and WHEREAS, the Prior Resolution provides that, among other things, all Refunded Bonds shall, prior to the maturity or redemption date thereof, be deemed to have been paid within the meaning of such resolution if there is deposited moneys or Defeasance Obligations (as such term is defined in the Original Resolution) which such term includes direct obligations, the payment of principal and interest on which is fully and unconditionally guaranteed by the United States of America (the "U.S. Obligations"), the principal of and the interest on which when due will provide moneys which, together with any other moneys deposited with the Escrow Agent, shall be sufficient to pay such Refunded Bonds, the interest thereon and the redemption premium, if any, as the same shall become due on the Refunded Bonds on or prior to the redemption date or maturity date thereof; and WHEREAS, the Commission has determined it to be in the best economic interest of the City to pay and defease the Refunded Bonds as more particularly described on Schedule A attached hereto, all in accordance with the terms and provisions of the Prior Resolution, the 2002 Bond Resolution and this Agreement; and WHEREAS, the City has determined to provide for the payment of the Refunded Bonds by depositing a portion of the proceeds from the Series 2002 Bonds, together with certain other lawfully available moneys, which shall be used in part to purchase U.S. Obligations, which U.S. \\wiob-srv0 I~SANFORDS\400785v04\I 1/25/02\16787 01 I000 Obligations and money shall be sufficient, as verified by Causey Demgen & Moore, Inc. in a letter dated December __, 2002, to pay the interest on the Refunded Bonds, as the same becomes due and payable from the date of this Agreement, and to pay the outstanding principal amounts of the then outstanding Refunded Bonds on such dates, together with interest thereon and a redemption premium of two percent (2%) of the principal amount of the Refunded Bonds, which are subject to optional redemption pursuant to the Original Resolution and this Agreement; and WHEREAS, in order to provide for the proper and timely application of the moneys deposited in the trust created herein, the maturing principal amount of the U.S. Obligations purchased thereby, and investment income and earnings derived therefrom to the payment of the Refunded Bonds, it is necessary for the City to enter into this Escrow Deposit Agreement with the Escrow Agent on behalf of the holders from time to time of the Refunded Bonds. NOW, THEREFORE, the City, in consideration of the foregoing and the mutual covenants herein set forth and in order to secure the payment of the principal of, redemption premium, if any, and interest on all of the Refunded Bonds, according to their tenor and effect, does by these presents hereby grant, warrant, demise, release, convey, assign, transfer, alienate, pledge, set over and confirm, unto the Escrow Agent, and to its successors in the trusts hereby created, and to it and its assigns forever, all and singular the property hereinafter described to wit: DIVISION I All right, title and interest of the City in and to [$ derived from the proceeds of the sale of the Series 2002 Bonds and $__ derived from the liquidation of certain moneys currently reserved to pay the Refunded Bonds (the "Transferred Moneys")]. DIVISION II All right, title and interest of the City in and to all income, earnings and increment derived from or accruing to the U.S. Obligations purchased from the money (except for certain uninvested cash balances) described in Division I hereof and more particularly described in Schedule B attached hereto and made a part hereof. DIVISION III Any and all other property of every kind and nature from time to time hereafter, by delivery or by writing of any kind, conveyed, pledged, assigned or transferred as and for additional security hereunder by the City or by anyone in its behalf to the Escrow Agent, which is hereby authorized to receive the same at any time as additional security hereunder. DIVISION IV All property which is by the express provisions of this Agreement required to be subject to the pledge hereof and any additional property that may, from time to time hereafter, by delivery or by writing of any kind, be subject to the pledge hereof, by the City or by anyone in its \\wpb-arv01~SANFORDSXA00785v04[11/25/02\16787 011000 2 behalf, and the Escrow Agent is hereby authorized to receive the same at any time as additional security hereunder. TO HAVE AND TO HOLD, all and singular, the Trust Estate (as such term is hereinafter defined), including all additional property which by the terms hereof has or may become subject to the encumbrances of this Agreement, unto the Escrow Agent, and its successors and assigns, forever in trust, however, for the benefit and security of the holders from time to time of the Refunded Bonds; but if the Refunded Bonds shall be fully and promptly paid when due in accordance with the terms thereof and hereof and all other obligations are performed hereunder, then this Agreement shall be and become void and of no further force and effect; otherwise, the same shall remain in full force and effect, and upon the trusts and subject to the covenants and conditions hereinafter set forth. ARTICLE I DEFINITIONS; FINDINGS AND DETERMINATIONS BY THE AUTHORITY SECTION 1.01 Definitions. In addition to words and terms elsewhere defined in this Agreement, the following words and terms as used in this Agreement shall have the following meanings, unless some other meaning is plainly intended. "Act" shall have the meaning ascribed to such term in the Original Resolution. "Agreement" shall mean this Escrow Deposit Agreement, dated as of December 1, 2002, between the City and the Escrow Agent. "Annual Debt Service" shall mean, as to the Refunded Bonds, principal called, redemption premium and interest coming due in each year, as shown on Schedule C attached hereto and hereby made a part hereof. "Paying Agent for the Refunded Bonds" shall mean the entity identified as such in Section 3.08 hereof. "Total Debt Service" shall mean, as of any date during the period from the date of this Agreement until February 1, 2003, the sum of the Annual Debt Service then remaining unpaid with respect to the Refunded Bonds, all as shown on Schedule C attached hereto and hereby made a part hereof. "Trust Estate," "trust estate" or "pledged property" shall mean 'the property, rights and interest of the City which are subject to the lien of this Agreement. "U.S. Obligations" shall mean non-callable, non-prepayable, direct obligations of, or non-callable, non-prepayable obligations the principal of and interest on which are fully and unconditionally guaranteed by, the United States of America, constituting part of the Trust Estate. The initial U.S. Obligations are described in Schedule B attached hereto. U.S. Obligations shall not include investments in mutual funds or unit investment trusts. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Words importing the singular number shall include \\wpb-srv01~ANFORD$',A00785v04\l t/25/02\16787 011000 3 the plural number and vice versa unless the context shall otherwise indicate. The word "person" shall include corporations, associations, natural persons and public bodies unless the context shall otherwise indicate. Reference to a person other than a natural person shall include its successors. ARTICLE II ESTABLISHMENT OF TRUST FUND; FLOW OF FUNDS SECTION 2.01 Creation of Escrow Deposit Trust Fund. There is hereby created and established with the Escrow Agent a special and irrevocable trust fund designated the Escrow Deposit Trust Fund (the "Trust Fund"), to be held in the custody of the Escrow Agent and accounted for separate and apart from other funds of the City or of the Escrow Agent. SECTION2.02 Deposit of Moneys and Payment of Refunded Bonds. Concurrently with the execution of this Agreement, the City herewith deposits or causes to be deposited with the Escrow Agent into the Trust Fund, and the Escrow Agent acknowledges receipt of $__ derived from a portion of the proceeds of the Series 2002 Bonds [and the Transferred Moneys], to be used in part to purchase the U.S. Obligations, as described on Schedule B in the maturing principal amount of $ , and the balance of such deposit in the amount of $ shall be held as immediately available moneys. The purchase of the U.S. Obligations and cash being derived from a portion of the proceeds of the Series 2002 Bonds and the Transferred Moneys deposited into the Trust Fund will, according to the opinion of Causey Demgen & Moore, Inc., set forth in its letter dated December __, 2002, provide moneys sufficient to pay the Total Debt Service on the Refunded Bonds. Money representing beginning cash balances and any other moneys not directed to be invested hereunder shall remain uninvested until applied in accordance with the terms hereof. SECTION 2.03 Irrevocable Trust Created. The deposit of the cash and U.S. Obligations in the Trust Fund shall constitute an irrevocable deposit of said cash and U.S. Obligations for the benefit of the holders of the Refunded Bonds, except as provided herein with respect to substitutions permitted under Section 2.05 hereof and amendments permitted under Section 4.01 hereof. The holders of the Refunded Bonds shall have a lien on the principal of and earnings on the U.S. Obligations and the cash deposited in the Trust Fund until applied in accordance with this Agreement and the applicable terms and provisions of the Original Resolution. SECTION 2.04 Purchase of U.S. Obligations. The City hereby directs the Escrow Agent to immediately purchase and the Escrow Agent hereby acknowledges the purchase of the U.S. Obligations listed on Schedule B from the moneys transferred to the Escrow Agent from the City in the manner described in Section 2.02 hereof. The Escrow Agent shall apply the moneys deposited in the Trust Fund and the aforementioned U.S. Obligations, together with all income or earnings thereon, if any, in accordance with the provisions hereof and the Original Resolution. The Escrow Agent shall have no power or duty to invest or reinvest any moneys held hereunder or to make substitutions of the U.S. Obligations held hereunder or to sell, transfer or otherwise dispose of the U.S. Obligations acquired hereunder except as provided in this Agreement. \[wpb-$rv01~SANFORDS\400785v04\l 1/25/02\16787 01 I000 4 SECTION 2.05 Failure to Deliver Initial U.S. Obligations. In the event that the underwriter for the Series 2002 Bonds (the "Underwriter") shall be unable to deliver any of the U.S. Obligations, as set forth in Schedule B (the "Initial U.S. Obligations") hereto, at the time of delivery of the Series 2002 Bonds, the Escrow Agent is hereby authorized to accept other U.S. Obligations (the "Substitute Securities") and/or cash in substitution for the Initial U.S. Obligations. Such substitution is subject to receipt by the City and the Escrow Agent of an independent verification by a nationally recognized certified public accounting firm acceptable to Greenberg Traurig, P.A. that the Substitute Securities and/or cash, together with any other U.S. Obligations and cash on deposit with the Escrow Agent, will be sufficient, without reinvestment, to meet the requirements for payment of the principal of, premium, if any, and interest on the Refunded Bonds in accordance with the terms of this Agreement. At any time prior to maturity of the Substitute Securities and/or cash, the City shall have the ability in writing to direct the Escrow Agent to exchange any of the Substitute Securities and/or cash delivered by the Underwriter for all or any part of the Initial U.S. Obligations. However, such exchange will be subject to the receipt by the City and the Escrow Agent of an independent verification by a nationally recognized independent certified public accounting firm acceptable to Greenberg Traurig, P.A. to the effect that the substitution of the Substitute Securities and/or cash for the Initial U.S. Obligations will be sufficient, without reinvestment, to meet the requirements for payments of principal of, premium, if any, and interest on the Refunded Bonds in accordance with the terms of this Agreement and the applicable provisions of the Original Resolution. Further, such independent verification report must indicate that the return of monies (generated by such Substitute Securities), in excess of the monies that would have been received on the Initial U.S. Obligations, to the Underwriter for the Series 2002 Bonds are not needed to pay the principal of, premium, if any, and interest on the Refunded Bonds when due in accordance with this Agreement and the applicable provisions of the Original Resolution. In addition, such return of the Substitute Securities and/or cash and any excess monies will not, as evidenced by an opinion from Greenberg Traurig, P.A. to the effect that, under the statutes, rules and regulations then in force and applicable to obligations issued on the date of issuance of the Refunded Bonds and under the Internal Revenue Code of 1986, as amended (the "Code"), cause the interest on the Series 2002 Bonds or the Refunded Bonds not to be excluded from gross income for federal income tax purposes and such investment is not inconsistent with the statutes and regulations applicable to the Series 2002 Bonds or the Refunded Bonds. SECTION 2.06 Transfers from Trust Fund. As the principal of the U.S. Obligations listed in Schedule B matures and is paid, and the investment income and earnings thereon, if any, are paid, the Escrow Agent shall, no later than each interest payment date and principal payment date for the Refunded Bonds transfer from the Trust Fund, in accordance with the schedule of payments described in Schedule C attached hereto, to the Paying Agent for the Refunded Bonds an amount sufficient to pay the principal of, redemption premium and interest on the Refunded Bonds coming due on such interest payment date or principal payment date. The Escrow Agent has relied on the opinion of Causey Demgen & Moore, Inc., set forth in its letter dated ., 2002, that the amount of money and securities on deposit herein and as reinvested in accordance with the terms hereof will be sufficient to pay Total Debt Service on the Refunded Bonds, and the Escrow Agent shall have no responsibility for an insufficiency of such amounts to pay Total Debt Service, provided the Escrow Agent performs in accordance with the provisions hereof. \\wpb-srvO 1 ~SANFORDS\400785v04\ 11/25/02\16787 011000 5 SECTION 2.07 Investment of Moneys remaining in Trust Fund. Subject to the requirements of this Section 2.07, thc Escrow Agent shall, as directed in writing by the City, invest and reinvest any moneys remaining from time to time in the Trust Fund, until such time as they are needed. Such moneys shall be reinvested in direct obligations of, or obligations fully guaranteed by, the United States of America for such periods or at such interest rates or yields that the Escrow Agent shall be directed in writing to invest by the City, which securities or periods or interest rates or yields shall be set forth in an opinion to the City from Grcenberg Traurig, P.A., which opinion shall also be to thc effect that such rcinvestment of such moneys will not, under the statutes, rules and regulations then in force and applicable to obligations issued on the dates of issuance of the Refunded Bonds and thc Series 2002 Bonds and under thc Code, cause thc interest on the Series 2002 Bonds or thc Refunded Bonds not to bc excluded from gross income for federal income tax purposes and that such investment is not inconsistent with the statutes and regulations applicable to the Series 2002 Bonds or thc Refunded Bonds. Such reinvestment of moneys is subject to receipt by thc City of an independent verification by a nationally recognized independent certified public accounting firm acceptable to Grccnbcrg Traurig, P.A. Any interest income resulting from rcinvestmcnt of moneys, pursuant to this Section 2.07 shall bc promptly transferred to the City and used for any purpose permitted under thc Original Resolution, if such verification report indicates that such interest income is not needed for the purposes contemplated by this Agreement, provided that the Escrow Agent shall have no responsibility for the proper usc by the City of money transferred to thc City by the Escrow Agent. SECTION 2.08 Trust Fund. The Trust Fund created and established pursuant to this Agreement shall be and constitute a trust fund for the purposes provided in this Agreement and shall be kept separate and distinct from all other funds of the City and the Escrow Agent and used only for the purposes and in the manner provided in this Agreement. SECTION2.09 Transfer of Funds after all Payments Required by this Aureement are Made. After all of the transfers by the Escrow Agent to the Paying Agent for the Refunded Bonds for thc payment of thc Total Debt Service on thc Refunded Bonds have been made, all remaining moneys and U.S. Obligations, together with any income and interest thereon, in the Trust Fund shall be transferred to the City by the Escrow Agent; provided, however, that no such transfer (except transfers made in accordance with Sections 2.07 and 4.01 hereof) to thc City shall be made until the Total Debt Service on thc Refunded Bonds has bccn paid. ARTICLE III CONCERNING THE ESCROW AGENT SECTION 3.01 Appointment of Escrow Agent. The City hereby appoints Wells Fargo Bank, National Association, having a corporate trust office in Coral Spring, Florida, as Escrow Agent under this Agreement. SECTION 3.02 Acceptance by Escrow Agent. By execution of this Agreement, the Escrow Agent accepts the duties and obligations as Escrow Agent hereunder. The Escrow Agent further represents that it has all requisite power, and has taken all corporate actions necessary, to execute the trust hereby created. \\wpb-srv01LSAlqFORDS~400785v04\l 1/25/02\16787 011000 6 SECTION 3.03 Liability of Escrow Agent. The Escrow Agent shall not be liable in connection with the performance of its duties hereunder except for its own negligence or willful misconduct. The Escrow Agent shall not be liable for any loss resulting from any investment made pursuant to the terms and provisions of this Agreement. The Escrow Agent shall have no lien, security interest or right of set-off whatsoever upon any of the moneys or investments in the Trust Fund for the payment of fees and expenses for services rendered by the Escrow Agent under this Agreement. As long as the Escrow Agent applies (by transfer to the Paying Agent for the Refunded Bonds) any moneys, the U.S. Obligations and the interest earnings, if any, therefrom to pay the Refunded Bonds, as provided herein, and complies fully with the terms of this Agreement, the Escrow Agent shall not be liable for any deficiencies in the amounts necessary to pay the Refunded Bonds. Further, the Escrow Agent shall not be liable for the accuracy of the calculations as to the sufficiency of moneys and of the principal amount of the U.S. Obligations, and the earnings, if any, thereon, to pay the Refunded Bonds. In the event of the Escrow Agent's failure to account for any of the U.S. Obligations or moneys received by it, said U.S. Obligations or moneys shall be and remain the property of the City in trust for the holders of the Refunded Bonds, as herein provided, and if for any improper reason such U.S. Obligations or moneys are not applied as herein provided, the Escrow Agent shall be liable for the amount thereof until the required application shall be made. Whenever the Escrow Agent shall deem it necessary or desirable that a matter be proved or established prior to taking, suffering or omitting any action under this Agreement, such matter may be deemed to be conclusively established by a certificate signed by an authorized officer of the City. The Escrow Agent may conclusively rely, as to the correctness of statements, conclusions and opinions therein, upon any certificate, report, opinion or other document furnished to the Escrow Agent pursuant to any provision of this Agreement; the Escrow Agent shall be protected and shall not be liable for acting or proceeding, in good faith, upon such reliance; and the Escrow Agent shall be under no duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument. The Escrow Agent may consult with counsel, who may be counsel to the City or independent counsel, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith in accordance herewith. Prior to retaining such independent counsel, the Escrow Agent shall notify the City of its intention. The Escrow Agent and its successors, agents and servants shall not be held to any personal liability whatsoever, in tort, contract or otherwise, by reason of the execution and delivery of this Agreement, the establishment of the Trust Fund, the acceptance and disposition of the various moneys and funds described herein, the purchase, retention or disposition of the U.S. Obligations or the proceeds thereof, any payment, transfer or other application of funds or securities by the Escrow Agent in accordance with the provisions of this Agreement, or any non-negligent act, omission or error of the Escrow Agent made in good faith in the conduct of its duties. The Escrow Agent shall, however, be liable to the City and to holders of the Refunded Bonds to the extent of their respective damages for negligent or willful acts, omissions or errors of the Escrow Agent which violate or fail to comply with the terms of this Agreement. The duties \\wpb-srv01 \SANFORDS\400785v04\ 11/25/02\16787 011000 7 and obligations of the Escrow Agent shall be determined by the express provisions of this Agreement. SECTION 3.04 Permitted Acts. The Escrow Agent and its affiliates may become the owner of or may deal in the Refunded Bonds as fully and with the same fights as if it were not the Escrow Agent. SECTION 3.05 Successor Escrow Agent. The Escrow Agent, at the time acting hereunder, may at any time resign and be discharged from the trusts hereby created by giving not less than sixty (60) days' written notice to the City, the Paying Agent for the Refunded Bonds and any rating agency which is then rating the Refunded Bonds, but no such resignation shall take effect unless a successor Escrow Agent shall have been appointed by the holders of the Refunded Bonds or by the City as hereinafter provided and such successor Escrow Agent shall have accepted such appointment, in which event such resignation shall take effect immediately upon the appointment and acceptance of a successor Escrow Agent. The Escrow Agent may be removed at any time by an instrument or concurrent instruments in writing, delivered to the Escrow Agent, and to the City, and signed by the holders of a majority in principal amount of each series of the Refunded Bonds then outstanding. In the event the Escrow Agent hereunder shall resign or be removed, or be dissolved, or shall be in the course of dissolution or liquidation, or otherwise become incapable of acting hereunder, or in case the Escrow Agent shall be taken under the control of any public officer or officers, or of a receiver appointed by a court, a successor may be appointed by the holders of a majority in principal amount of each series of the Refunded Bonds then outstanding by an instrument or concurrent instruments in writing, signed by such holders, or by their attorneys in fact, duly authorized in writing; provided, nevertheless, that in any such event, the City shall appoint a temporary Escrow Agent to fill such vacancy until a successor Escrow Agent shall be appointed by the holders of a majority in principal amount of the Refunded Bonds then outstanding in the manner above provided, and any such temporary Escrow Agent so appointed by the City shall immediately and without further act be superseded by the Escrow Agent so appointed by such holders. The City shall promptly notify the Escrow Agent of any change in the identity of the Paying Agent for the Refunded Bonds. In the event that no appointment of a successor Escrow Agent or a temporary successor Escrow Agent shall have been made by such holders or the City pursuant to the foregoing provisions of this Section within sixty (60) days after written notice of resignation of the Escrow Agent has been given to the City, the holder of any of the Refunded Bonds or any retiring Escrow Agent may apply to any court of competent jurisdiction for the appointment of a successor Escrow Agent and such court may thereupon, after such notice, if any, as it shall deem proper, appoint such successor Escrow Agent. No successor Escrow Agent shall be appointed unless such successor Escrow Agent shall be a corporation with trust powers organized under the banking laws of the United States or any state, and shall have at the time of appointment capital and surplus of not less than $50,000,000 or is a member of a bank group or bank holding company with aggregate capital and surplus of not less than $50,000,000. \\wpb-srv01 ~SANFORDS~400785v04\I 1/25/02\16787 011000 8 Every successor Escrow Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor, and to the City, an instrument in writing accepting such appointment hereunder and thereupon such successor Escrow Agent, without any further act, deed or conveyance, shall become fully vested with all the rights, immunities, powers, trusts, duties and obligations of its predecessor; but such predecessor shall, nevertheless, on the written request of such successor Escrow Agent or the City, execute and deliver an instrument transferring to such successor Escrow Agent all the estates, properties, rights, powers and trusts of such predecessor hereunder; and every predecessor Escrow Agent shall deliver all securities and moneys held by it to its successor; provided, however, that before any such delivery is required to be made, all fees, advances and expenses of the retiring or removed Escrow Agent shall be paid in full. Should any transfer, assignment or instrument in writing from the City be required by any successor Escrow Agent for more fully and certainly vesting in such successor Escrow Agent the estates, rights, powers and duties hereby vested or intended to be vested in the predecessor Escrow Agent, any such transfer, assignment and instruments in writing shall, on request, be executed, acknowledged and delivered by the City. Any corporation into which the Escrow Agent, or any successor to it in the trusts created by this Agreement, may be merged or converted, or to which substantially all of its corporate assets have been sold or assigned, or with which it or any successor to it may be consolidated, or any corporation resulting from any merger, conversion, consolidation or reorganization to which the Escrow Agent or any successor to it shall be a party, shall be the successor Escrow Agent under this Agreement without the execution or filing of any paper or any other act on the part of any of the parties hereto, anything herein to the contrary notwithstanding. SECTION 3.06 Receipt of Proceedings. Receipt of true and correct copies of the proceedings authorizing the issuance of the Refunded Bonds, including the Original Resolution, are hereby acknowledged by the Escrow Agent, and reference herein to or citation herein of any provision of said documents shall be deemed to incorporate the same as a part hereof in the same manner and with the same effect as if they were fully set forth herein. SECTION 3.07 Ci~. Indemnit-v. The City agrees to indemnify and save the Escrow Agent, its agents and employees, harmless, to the extent allowed by law, against any liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements of whatsoever kind or nature which it may incur in the exercise and performance of its powers and duties hereunder, including legal expenses, and which are not due to its own negligence or willful misconduct. Indemnification provided under this section shall survive the termination of this Agreement. SECTION 3.08 Payment to Escrow Agent and Paying Agent. The City hereby agrees to provide for the payment, from its own legally available funds, the costs, charges, services and expenses of the Escrow Agent incurred in connection with its duties under this Agreement. The Escrow Agent hereby acknowledges that it has agreed to accept, and the City agrees to pay, on the date of execution of this Agreement, the compensation under this Agreement, as shown on the attached Exhibit C, plus reasonable expenses. The City hereby agrees to pay the fees and expenses of the Paying Agent referred to below and any publication costs borne by such Paying Agent for the Refunded Bonds or by the Escrow Agent from the City's own legally available moneys. \\wpb-$rv01\SANFORDS\400785v04\I 1/25/02\16787 011000 9 The paying agent for the Refunded Bonds is Wachovia Bank, National Association, having a representative office in Miami, Florida. SECTION 3.09 Notices of Redemption and Defeasance. The City hereby irrevocably instructs the Escrow Agent to file a copy of the notice of redemption with the Paying Agent for the Refunded Bonds not less than forty (40) days prior to February 1, 2003 with respect to the Refunded Bonds, with instructions to such Paying Agent to mail such notice of optional redemption to the registered owners of such Refunded Bonds not less than thirty (30) days prior to February 1, 2003. Such notices of redemption, with respect to the Refunded Bonds shall be in substantially the forms attached hereto as Exhibit A. The cost of mailings shall be borne by the City. The City hereby instructs the Escrow Agent to publish the Notice of Defeasance, set forth on Exhibit B attached hereto, and then file the same with the Paying Agent for the Refunded Bonds, all in accordance with the instructions set forth thereon. The cost of such filings and publication shall be borne by the City. ARTICLE IV MISCELLANEOUS SECTION 4.01 Amendments to this Aereement. This Agreement is made for the benefit of the City and the holders from time to time of the Refunded Bonds and it shall not be repealed, revoked, altered or amended in whole or in part without the written consent of all affected holders, the Escrow Agent and the City if such amendment adversely affects its rights; provided, however, that the City and the Escrow Agent may, without the consent of, or notice to, such holders, enter into such agreements supplemental to this Agreement as shall not adversely affect the rights of such holders and as shall not be inconsistent with the terms and provisions of this Agreement, for any one or more of the following purposes: (a) to cure any ambiguity or formal defect or omission in this Agreement; (b) to grant to, or confer upon, the Escrow Agent, for the benefit of the holders of the Refimded Bonds, any additional rights, remedies, powers or authority that may lawfully be granted to, or conferred upon, such holders or the Escrow Agent; and (c) to subject to this Agreement additional funds, securities or properties. The Escrow Agent shall be entitled to rely exclusively upon an unqualified opinion of nationally recognized attorneys on the subject of municipal bonds with respect to compliance with this Section, including the extent, if any, to which any change, modification, addition or elimination affects the rights of the holders of the Refunded Bonds or that any instrument executed hereunder complies with the conditions and provisions of this Section. Notwithstanding the foregoing or any other provision of this Agreement other than Sections 2.05 and 2.07 hereof at the written request of the City and upon compliance with the conditions hereinafter stated, the Escrow Agent shall have the power to and shall, in simultaneous transactions, sell, transfer, otherwise dispose of or request the redemption of the U.S. Obligations held hereunder and to substitute therefor direct obligations of, or obligations \\wpb-srv0 I~SANFORDS\400785v04\ 11/25/02\16787 O11000 1 0 fully guaranteed by the United States of America, subject to the conditions that such moneys or securities held by the Escrow Agent shall be verified to be sufficient, without reinvestment, to pay Annual Debt Service on the Refunded Bonds, as the same shall become due, until the Total Debt Service on the Refunded Bonds has been paid in accordance with Schedule C attached hereto. The City hereby covenants and agrees that it will not request the Escrow Agent to exercise any of the powers described in the preceding sentence (i) in any manner which will cause the Series 2002 Bonds or the Refunded Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code, and the regulations thereunder in effect on the date of such request and applicable to obligations issued on the issue date of the Series 2002 Bonds and the Refunded Bonds, and (ii) without payment of reasonable expenses of the Escrow Agent in connection therewith. The Escrow Agent shall, as directed in writing by the City, purchase such substituted securities with the proceeds derived from the maturity, sale, transfer, disposition or redemption of the U.S. Obligations held hereunder or from other moneys available. The transactions may be effected only if there shall have been obtained: (1) an independent verification by a nationally recognized independent certified public accounting firm retained by the City concerning the adequacy of such substituted securities with respect to principal and the interest thereon and any other moneys or securities held for such purpose to pay Annual Debt Service on the Refunded Bonds when due, until the Total Debt Service on the Refunded Bonds has been paid in accordance with Schedule C attached hereto; and (2) an opinion from Greenberg Traurig, P.A., or from any other nationally recognized attorneys on the subject of municipal bonds, to the City and the Escrow Agent to the effect that the disposition and substitution or purchase of such securities will not, under the statutes, rules and regulations then in force and applicable to obligations issued on the date of issuance of the Series 2002 Bonds and Refunded Bonds, cause the interest on such Series 2002 Bonds or Refunded Bonds not to be excluded from gross income for Federal income tax purposes and that such disposition and substitution or purchase is not inconsistent with the statutes and regulations applicable to the Series 2002 Bonds and the Refunded Bonds. Any surplus moneys, identified as such in the then applicable verification report, resulting from the sale, transfer, other disposition or redemption of the U.S. Obligations held hereunder and the substitutions therefor of direct obligations of, or obligations the principal of and interest on which is fully guaranteed by, the United States of America, shall be released from the Trust Estate and shall be transferred to the City. The City shall provide written notice of any such amendment to the rating agencies then rating the Bonds prior to the effective date thereof. The City shall give prior written notice to Moody's Investors Service, Inc. (herein, "Moody's"), together with draft copies, of any proposed amendment, alteration, revocation, severance or repeal of this Agreement pursuant to this Section. Such notice shall be given in writing to: Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention: Public Finance Ratings Desk - Refunded Bonds. SECTION 4.02 Severability. If any one or more of the covenants or agreements provided in this Agreement on the part of the City or the Escrow Agent to be performed should be determined by a court of competent jurisdiction to be contrary to law, such covenant or agreement shall be deemed and construed to be severable from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement. The Escrow Agent shall notify Moody's as soon as practicable if any portion of this Agreement becomes severable. \\wpb-srv01~ANFORDS~00785v04\l 1/25/02\16787 011000 1 1 SECTION 4.03 Agreement BindinG. All the covenants, promises and agreements in this Agreement contained by or on behalf of the City or by or on behalf of thc Escrow Agent shall bind and inure to the benefit of their respective successors and assigns, whether so expressed or not. SECTION 4.04 Termination. This Agreement shall terminate when all transfers and payments required to be made by the Escrow Agent under the provisions hereof shall have been made. SECTION 4.05 Governing Law. This Agreement shall be governed by the applicable laws of the State of Florida. SECTION 4.06 Execution by Counterparts. This Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. SECTION 4.07 Notices. Until otherwise directed in writing by any person named below, all notices, reports, or other communications required or permitted to be given in accordance with the terms of this Agreement shall be in writing and sent by registered or certified mail addressed as follows: (a) As to the City: Rebecca S. O'Connor City of Delray Beach 100 N.W. 1st Avenue Delray Beach, FL 33444 (561) 243-7120 (561) 243-7166 - Fax (b) As to the Escrow Agent: Wells Fargo Bank, National Association 210 North University Drive Suite 302 Coral Springs, FL 33071 Attention: Corporate Trust Department (c) As to the Paying Agent: Wachovia Bank, national Association 200 South Biscayne Boulevard 14th Floor Miami, Florida 33131 Attention: Corporate Trust Department \\wpb-srv01 \SANFORDS\400785v04\ 11/25/02\16787 011000 12 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its duly authorized officers and its corporate seal to be hereunto affixed and attested as of the date of execution set forth below. CITY OF DELRAY BEACH, FLORIDA By: (SEAL) Title: Mayor Date of Execution: December__, 2002 Attest: City Clerk Wells Fargo Bank, National Association, as Escrow Agent (SEAL) By: Authorized Officer Date of Execution: December __, 2002 \\wpb-srv01~SANFORDSX400785v04Xl 1/25/02\16787 011000 13 SCHEDULE A REFUNDED BONDS Series 1993A Bonds Maturity Date 2/01/03 2/01/04 2/01/05 2/01/06 2/01/07 2/01/08 2/01/09 2/01/10 2/01/13 Principal Amount $ 185,000 195,000 200,000 205,000 725,000 755,000 795,000 835,000 6,155,000 $10,050,000 Interest Rate 4.40% 4.50% 4.60% 4.70% 4.80% 5.00% 5.00% 5.00% 5.10% Series 1993B Bonds Maturity Date 2/01/03 2/01/04 2/01/05 2/01/06 2/01/07 2/01/08 2/01/09 2/01/10 Principal Amount $ 725,000 760.000 795.000 835.000 875.000 925.000 970.000 1,020,000 $6,905,000 Interest Rate 4.40% 4.50% 4.60% 4.70% 4.80% 5.00% 5.00% 5.00% \\wpb-srv0 I\SANFORDS\400785v04\I 1/25/02\16787 0110(X) SCHEDULEB U.S. OBLIGATIONS Purchased from Proceeds of the Series 2002 Bonds [and Transferred Moneys] Maturity Principal Interest Date Amount Rate 2/01/03 Type SLGs~ Purchase Price u.s. Treasury Securities - State and Local Government Series \\wpb-srv01\SANFORDS\400785v04\l 1/25/02\16787 011000 Interest Payment Date 2/01/03 SCHEDULE C Annual Debt Service and Total Debt Service for Refunded Bonds payable as indicated below Series 1993A Bonds Maturing Called Redemption Principal Principal Premium Interest $185,000 $9,865,000 $197,300 Total Series 1993B Bonds Interest Payment Maturing Called Redemption Date Principal Principal Premium 2/01/03 $725,000 $6,180,000 $123,600 Interest Total \\wpb-srv01\SANFORDS\400785v04~l 1/25/02\16787 O11000 EXHIBIT A-1 NOTICE OF CALL FOR REDEMPTION $ CITY OF DELRAY BEACH, FLORIDA General Obligation Bonds, Series 1993 A (Decade of Excellence Program) Maturing on February 1, 2004 through and including February 1, 2013 NOTICE IS HEREBY GIVEN that, pursuant to Resolution No. 98-89, adopted by the City of Delray Beach, Florida (the "City"), on December 12, 1989, as amended and supplemented (collectively, the "Resolution"), the City has irrevocably deposited with Wells Fargo Bank, National Association, as escrow agent (the "Escrow Agent"), in trust, and irrevocably set aside for such payment, cash and Defeasance Obligations (as such term is defined in the Resolution), maturing as to principal and interest in such amounts and at such times as will ensure the availability of sufficient moneys to pay the principal of and interest thereon to the redemption date of certain of the outstanding City of Delray Beach, Florida General Obligation Bonds, Series 1993 A (Decade of Excellence Program) (the "Defeased Bonds"), as described below, and that the Defeased Bonds are deemed to have been paid in accordance with the terms and provisions of the Resolution and that the Defeased Bonds, other than the Defeased Bond maturity on February 1, 2003, are hereby called for optional redemption on February 1, 2003 (the "Redemption Date"), at a price of 102% of the principal amount thereof plus accrued interest to the Redemption Date. The maturities and principal amounts per maturity and CUSIP numbers of the Defeased Bonds to be redeemed are as follows: Maturity Principal Date Amount CUSIP No. 2/01/04 $ 195,000 2/01/05 200,000 2/01/06 205,000 2/01/07 725,000 2/01/08 755,000 2/01/09 795,000 2/01/10 835,000 2/01/13 6,155,000 The Defeased Bonds subject to optional redemption on the Redemption Date shall be presented for payment at the designated corporate trust office of Wachovia Bank, National Association, Attention: Corporate Trust Department (the "Paying Agent"). On or after the Redemption Date, no interest shall accrue on said Defeased Bonds. \\wpb-srv01 \SANFORDS\400785v04\ 11/25/02\16787 011000 A= 1-1 This notice is given in conformity with the provisions of the Defeased Bonds and the Resolution providing for their issuance, and the owners of said Defeased Bonds are hereby notified and requested to present such Defeased Bonds for redemption and payment as provided above. The Defeased Bonds which have been called for redemption will be paid from funds irrevocably deposited for this purpose in an Escrow Deposit Trust Fund established with Wells Fargo Bank, National Association, as Escrow Agent for the Defeased Bonds. CITY OF DELRAY BEACH, FLORIDA Wachovia Bank, National Association, as Paying Agent and Bond Registrar for the Defeased Bonds. Dated ,2003 \\wpb-$rv01 \SANFORDS\400785v04~,l 1/25/02\16787 011000 A- 1-2 Withholding of 31% of gross redemption proceeds of any payment made within the United States is required by the Interest and Dividend Tax Compliance Act of 1983, as amended, unless the Paying Agent has the correct taxpayer identification number (social security or employer identification number) or exemption certificate of the payee. Please furnish a properly completed Form W-9 or exemption certificate or equivalent when presenting your bonds for payment. CUSIP numbers have been assigned by Standard & Poor's Corporation and are included solely for the convenience of the holders. Neither the City nor the Escrow Agent shall be responsible for the selection or use of the CUSIP numbers nor is any representation made as to their correctness on the Defeased Bonds or as indicated in any redemption notice. Instructions to Escrow Agent: This notice must be filed, by the Escrow Agent, with the Paying Agent, as provided in Section 3.09 of the Escrow Deposit Agreement. \\wpb-srv01\SANFORDS~00785v04\l 1/25/02~16787 011000 A- 1-3 EXHIBIT A-2 NOTICE OF CALL FOR REDEMPTION $ CITY OF DELRAY BEACH, FLORIDA General Obligation Refunding Bonds, Series 1993 B (Decade of Excellence Program) Maturing on February 1, 2004 through and including February 1, 2010 NOTICE IS HEREBY GIVEN that, pursuant to Resolution No. 98-89, adopted by the City of Delray Beach, Florida (the "City"), on December 12, 1989, as amended and supplemented (collectively, the "Resolution"), the City has irrevocably deposited with Wells Fargo Bank, National Association, as escrow agent (the "Escrow Agent"), in trust, and irrevocably set aside for such payment, cash and Defeasance Obligations (as such term is defined in the Resolution), maturing as to principal and interest in such amounts and at such times as will ensure the availability of sufficient moneys to pay the principal of and interest thereon to the redemption date of certain of the outstanding City of Delray Beach, General Obligation Refunding Bonds, Series 1993 B (the "Defeased Bonds"), as described below, and that the Defeased Bonds are deemed to have been paid in accordance with the terms and provisions of the Resolution and that the Defeased Bonds, other than the Defeased Bonds maturing on February 1, 2003, are hereby called for optional redemption on February 1, 2003 (the "Redemption Date"), at a price of 102% of the principal amount thereof plus accrued interest to the Redemption Date. The maturities and principal amounts per maturity and CUSIP numbers of the Defeased Bonds to be redeemed are as follows: Maturity Principal Date Amount CUSIP No. 2/01/04 $ 195,000 2/01/05 200,000 2/01/06 205,000 2/01/07 725,000 2/01/08 755,000 2/01/09 - 795,000 2/01/10 835,000 The Defeased Bonds subject to optional redemption on the Redemption Date shall be presented for payment at the designated corporate trust office of Wachovia Bank, National Association, Attention: Corporate Trust Department (the "Paying Agent"). On or after the Redemption Date, no interest shall accrue on said Defeased Bonds. \\wpb-srv0 BSANFORDS\400785v0a\I 1/25/02\16787 011000 A-2-1 This notice is given in conformity with the provisions of the Defeased Bonds and the Resolution providing for their issuance, and the owners of said Defeased Bonds are hereby notified and requested to present such Defeased Bonds for redemption and payment as provided above. The Defeased Bonds which have been called for redemption will be paid from funds irrevocably deposited for this purpose in an Escrow Deposit Trust Fund established with Wells Fargo Bank, National Association, as Escrow Agent for the Defeased Bonds. CITY OF DELRAY BEACH, FLORIDA Wachovia Bank, National Association, as Paying Agent and Bond Registrar for the Defeased Bonds. Dated ,2003 \\wpb-srv01\SANFORDS\400785v04\l 1/25/02\16787 011000 A-2-2 Withholding of 31% of gross redemption proceeds of any payment made within the United States is required by the Interest and Dividend Tax Compliance Act of 1983, as amended, unless the Paying Agent has the correct taxpayer identification number (social security or employer identification number) or exemption certificate of the payee. Please furnish a properly completed Form W-9 or exemption certificate or equivalent when presenting your bonds for payment. CUSIP numbers have been assigned by Standard & Poor's Corporation and are included solely for the convenience of the holders. Neither the City nor the Escrow Agent shall be responsible for the selection or use of the CUSIP numbers nor is any representation made as to their correctness on the Defeased Bonds or as indicated in any redemption notice. Instructions to Escrow Agent: This notice must be filed, by the Escrow Agent, with the Paying Agent, as provided in Section 3.09 of the Escrow Deposit Agreement. \\wpb-srv01\SANFORDS\400785v04\l 1/25/02\16787 011000 A-2-3 EXHIBIT B-1 NOTICE OF DEFEASANCE CITY OF DELRAY BEACH, FLORIDA General Obligation Bonds, Series 1993 A (Decade of Excellence Program) NOTICE IS HEREBY GIVEN that the City of Delray Beach, Florida (the "City"), has caused to be deposited with Wells Fargo Bank, National Association, having a designated corporate trust office in Coral Springs, Florida (the "Escrow Agent"), pursuant to the terms and provisions of a certain Escrow Deposit Agreement, dated as of December 1, 2002 (the "Escrow Agreement"), by and between the City and the Escrow Agent, bond proceeds and other legally available moneys which have been invested (except for a small initial cash balance which will remain uninvested) in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America (collectively, the "Deposits"), to pay and defease the City's outstanding General Obligation Bonds, Series 1993 A (Decade of Excellence Program) (the "Defeased Bonds"), maturing on February 1, 2003 through and including February 1, 2013. The Defeased Bonds, other than the Defeased Bonds maturing on February 1, 2003, will be called for optional redemption on February 1, 2003, at a price of 102% of the principal amount thereof, plus accrued interest to the redemption date. In the opinion of Causey Demgen & Moore, Inc., set forth in their report dated December __, 2002, the Deposits are fully sufficient to pay and refund the Defeased Bonds on their respective redemption dates. Pursuant to the defeasance provisions set forth in the resolutions authorizing the issuance of the Defeased Bonds (the "Bond Resolution"), the Defeased Bonds are deemed paid within the meaning thereof. \\wpb-srvO BSANFORDS\400785v04\ 11/25/02\16787 011000 B- 1 - 1 The Paying Agent for the Defeased Bonds shall provide notice of redemption in accordance with the provisions of the Bond Resolution. CITY OF DELRAY BEACH, FLORIDA Dated: Instructions to Escrow Agent: This notice must be published once in The Bond Buyer as soon as practicable after December __, 2002, and filed with the Paying Agent for the Refunded Bonds as soon as practicable after December __, 2002, with instructions to mail the same to the registered holders of the Defeased Bonds. \\wpb-srv01 \SANFORDS\400785v04\ 11/25/02\16787 011000 B- 1-2 EXHIBIT B-2 NOTICE OF DEFEASANCE CITY OF DELRAY BEACH, FLORIDA General Obligation Refunding Bonds, Series 1993 B (Decade of Excellence Program) NOTICE IS HEREBY GWEN that the City of Delray Beach, Florida (the "City"), has caused to be deposited with Wells Fargo Bank, National Association, having designated corporate trust office in Coral Springs, Florida (the "Escrow Agent"), pursuant to the terms and provisions of a certain Escrow Deposit Agreement, dated as of December 1, 2002 (the "Escrow Agreement"), by and between the City and the Escrow Agent, bond proceeds and other legally available moneys which have been invested (except for a small initial cash balance which will remain uninvested) in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America (collectively, the "Deposits"), to pay and defease the City's outstanding General Obligation Refunding Bonds, Series 1993 B (Decade of Excellence Program) (the "Defeased Bonds"), maturing on February 1, 2003 through and including February 1, 2010. The Defeased Bonds, other than the Defeased Bonds maturing on February 1, 2003, will be called for optional redemption on February 1, 2003, at a price of 102% of the principal amount thereof, plus accrued interest to the redemption date. In the opinion of Causey Demgen & Moore, Inc., set forth in their report dated December __, 2002, the Deposits are fully sufficient to pay and refund the Defeased Bonds on their respective redemption dates. Pursuant to the defeasance provisions set forth in the resolutions authorizing the issuance of the Defeased Bonds (the "Bond Resolution"), the Defeased Bonds are deemed paid within the meaning thereof. \\wpb-srv01\SANFORDS\400785v04\l 1/25/02\16787 011000 B-2-1 The Paying Agent for the Defeased Bonds shall provide notice of redemption in accordance with the provisions of the Bond Resolution. CITY OF DELRAY BEACH, FLORIDA Dated: Instructions to Escrow Agent: This notice must be published once in The Bond Buyer as soon as practicable after December __, 2002, and filed with the Paying Agent for the Refunded Bonds as soon as practicable after December __, 2002, with instructions to mail the same to the registered holders of the Defeased Bonds. \\wpb-srv01\SANFORDS\400785v04\l 1/25/02\16787 O11000 B=2-2 EXHIBIT C Acceptance Fee -0- Escrow Agent Administration Fee (One time up front due at Closing) $450.00 Reimbursement of out-of-pocket costs including postage, publication and legal fees, if necessary, at cost. [ \\wpb-srv01\SANFORDS\400785v04\l 1/25/02\16787 011000 C- 1 11/25/02 14:52 9407 648 1323 PUBLIC FINANCIAL ~003/003 Public Financial Management FIn=nc~a} and Investment Advisom Sulle 720 201 SOu~ Orange Avenue Orlando. FL 32801 °3470 407 848-2208 407-648-1323 ~u~ w.~.pfm.com Exhibit D December 3, 2002 The City Commission of The City of Defray Beach, Florida 100 N.W. 1' Avenue Delray Beach, Florida 33444 Dear Ladies and Gendeman: In serving in our capacity as Financial Advisor to the City of Delray Beach, Florida on the City's General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program), Public Financial Management, Inc. is recommending the use of the negotiated sale process as opposed to the competitive sale format. We believe that given the current vol~t~V/of the tax-exempt municipal market, the negotiated sale process is most beneficial to the City. Additionally, we are of the opinion that the use of bond insurance to insure the principal and interest payments on the Bonds provides economic benefit to the City, and are therefore recommending its use. David Miller Public Financial Management, Inc. Senior Managing Consultant Exhibit E November 21, 2002 VlA FEDERALEXPRESS Mr. Joe Safford City of Delray Beach 100 NW First Avenue Delray Beach, Florida 33444 Re: $16,560,000 in aggregate principal amount of City of Delray Beach, Florida General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) Dear Mr. Safford: Enclosed please find two signed originals of our commitment letter in respect of the above-referenced issue. Please have both documents signed, keep one original for your records, and return the other original to me at the address indicated below. The signed original, executed by an appropriate officer, must be returned to me prior to any reference to Financial Security Assurance Inc. ("Financial Security") as insurer of the issue being made in marketing efforts in respect of the issue. Please note that Financial Security's website may be accessed at www.fsa.com/products/municipaledoc.php. The logo, statement of insurance, disclosure language, specimen policy, procedures for premium payment, form of opinion and form of disclosure, no default and tax certificate may be accessed and downloaded as needed. Financial Security will require, prior to closing, six hard copies of the final official statement. The bond proof and official statement drafts should be delivered to me w~th reasonable opportunity to submit any comments prior to final printing of these items. I would also appreciate being notified of a confirmed closing date as soon as ~t becomes available. Please note my phone number, fax numbers and e-mail address are as follows: (212) 339-3537, (212) 339-0872 or (212) 339-3588 and LSantana@FSA. com. We will deliver to Bond Counsel, at the preliminary closing, assuming the requirements of the commitment letter have been met, an opinion of counsel as to the enforceability of the policy, a disclosure, no default and tax certificate of Financial Security and the executed policy. Prior to the closing, Financial Security will obtain rating letters from the rating agencies indicated in the official statement. Note that any questions with regard to rating agency fees should be directed to the respective rating agency. Financial Security requires one original and two copies of the final closing transcript of proceedings and it may be in the form of either hard copies or three CD-ROMs. I look forward to working with you. Sincerely yours, Lillie Santana Assistant Vice President Documentation and Closing Supervisor Enclosures CC' Stephen D. Sanford, Esq.; Greenberg Traurig, LLP Mr. Jay Glover; Pubhc Financial Management, Inc. Mr. J.W. Howard, Managing Underwriter; Bear Stearns & Co., Inc. MUNICIPAL BOND INSURANCE COMMITMENT FINANCIAL SECURITY ASSURANCE INC. ("Financial Security" or "FSA") hereby commits to issue its Municipal Bond Insurance Policy (the "Policy") relating to whole maturities of the debt obligations described in Exhibit A attached hereto (the "Bonds"), subject to the terms and conditions set forth in this Commitment, of which Commitment Exhibit A is an integrated part, or added hereto (the "Commitment"). To keep th~s Commitment in effect after the Expiration Date set forth in Exhibit A attached hereto, a request for renewal must be submitted to Financial Security prior to such Expiration Date. Financial Security reserves the right to refuse wholly or in part to grant a renewal. THE MUNICIPAL BOND INSURANCE POLICY SHALL BE ISSUED IF THE FOLLOWING CONDITIONS ARE SATISFIED: 1. The documents to be executed and delivered in connection with the issuance and sale of the Bonds shall not contain any untrue or misleading statement of a material fact and shall not fail to state a material fact necessary in order to make the information contained therein not misleading. 2 No event shall occur which would permit any underwriter or purchaser of the Bonds, otherwise required, not to be required to underwrite or purchase the Bonds on the date scheduled for the issuance and delivery thereof ("Closing Date"). 3. There shall be no material change in or affecting the Bonds (including, w~thout limitation, the security for the Bonds) or the financing documents or the Official Statement (or any similar d~sclosure documents) to be executed and delivered in connection with the issuance and sale of the Bonds from the descriptions or forms thereof approved by Financial Security. 4. The Bonds shall contain no reference to Financial Security, the Policy or the insurance evidenced thereby except as may be approved by Financial Security. BOND PROOFS SHALL HAVE BEEN APPROVED BY FINANCIAL SECURITY PRIOR TO PRINTING. The Bonds shall bear a Statement of Insurance in the form provided by Financial Security. 5. Financial Security shall be provided with: (a) Executed copies of all financing documents, any disclosure document (the "Official Statement") and the various legal opinions delivered in connection with the issuance and sale of the Bonds (which shall be dated the Closing Date and which, except for the opinions of counsel relating to the adequacy of disclosure, shall be addressed to Financial Security or accompanied by a letter of such counsel permitting Financial Security to rely on such opimon as if such opimon were addressed to Financial Security), including, without limitation, the approving opinion of bond counsel. Each of the foregoing shall be ~n form and substance acceptable to Financial Security. Copies of all drafts of such documents prepared subsequent to the date of the Commitment (blacklined to reflect all revisions from previously reviewed drafts) shall be furnished to Financial Security for review and approval. Final drafts of such documents shall be provided to Financial Security at least three (3) business days prior to the issuance of the Policy, unless Financial Security shall agree to some shorter period. (b) Evidence of wire transfer in federal funds of an amount equal to the insurance premium, unless alternative arrangements for the payment of such amount acceptable to Financial Security have been made prior to the delivery date of the Bonds. lc) Standard & Poor's Credit Market Services, Moody's Investors Service Inc. and Fitch IBCA, Inc. will separately present bills for their respecbve fees relating to the Bonds. Payment of such b~lls should be made directly to such rating agency. Payment of the rating fee is not a condition to release of the Policy by Financial Secunty. 6. Promptly after the closing of the Bonds, Financial Security shall receive three completed sets of executed documents (one original and either (i) two photocopies (each unbound) or (~) three compact discs). 7. The Official Statement shall contain the language provided by Financial Secudty and only such other references to Financial Security or otherwise as Financial Security shall supply or approve. FINANCIAL SECURITY SHALL BE PROVIDED WITH SIX PRINTED COPIES OF THE OFFICIAL STATEMENT. EXHIBIT A TERM SHEET FOR MUNICIPAL BOND INSURANCE COMMITMENT Issuer: City of Delray Beach, Florida Principal Amount of Bonds Insured: Not to Exceed $16,560,000 Name of Bonds Insured: General Obligation Refunding Bonds, Series 2002 (Decade of Excellence Program) Date of Commitment: November 21, 2002 Expiration Date: Fdday, January 24, 2003 Premium: $35,686.19/.177% of total debt service on the Bonds Insured Bond Counsel Opinion -- Language Requirements: The approving opinion of Bond Counsel shall include language to the effect that the Bonds are a full faith and credit obligation of the Issuer, the payment for which the Issuer is obligated to exercise its ad valorem taxing power, without hm~t as to rate or amount, upon all taxable property within the Issuer. Additional Conditions: None. FINANCIAL SECURITY ASSURANCE INC. Authorized Officer *To keep the Commitment in effect to the Expiration Date set forth above, Financial Security must receive a duplicate of this Exhibit A executed by an appropriate officer by the earlier of the date on which the Official Statement contaimng disclosure language about Financial Security is circulated and ten days from the Date of Commitment The undersigned agrees that if the Bonds are insured by a policy of municipal bond insurance, such insurance shall be provided by Financial Security in accordance w~th the terms of the Commitment. CITY OF DELRAY BEACH, FLORIDA Authorized Officer C \Documents and Setbngs\wdhamsm GTLAW\Local Settings\Temporary Internet F~Ies\OLK3897~EMAIL 59020_C doc PROCEDURES FOR PREMIUM PAYMENT TO FINANCIAL SECURITY ASSURANCE INC. Financial Security's issuance of its municipal bond insurance policy at bond closing is contingent upon payment and receipt of the premium. NO POLICY MAY BE RELEASED UNTIL PAYMENT OF SUCH AMOUNT HAS BEEN CONFIRMED. Set forth below are the procedures to be followed for confirming the amount of the premium to be paid and for paying such amount: Confirmation of Amount to be Paid: Upon determination of the final debt service schedule, fax such schedule to Financial Security Attention: Juliet Kong, Analyst Phone No. (212) 893-9659 Fax No. (212) 339-3450 Confirm with the individual in our underwriting department that you are in agreement with respect to par and premium on the transaction prior to the closing date. Payment Date: Date of Delivery of the insured bonds. Method of Payment: Wire transfer of Federal Funds. Wire Transfer Instructions: Bank: ABA#: Acct. Name: Account No.: Policy No.: The Bank of New York 021 000 018 Financial Security Assurance Inc. 8900297263 [To Be Assigned] CONFIRMATION OF PREMIUM WIRE NUMBER AT CLOSING Financial Security will accept as confirmation of the premium payment a wire transfer number and the name of the sending bank, to be communicated on the closing date to Lillie Santana, Assistant Vice President, Documentation and Closing Supervisor (212) 339-3537. [IT¥IDEL!RIt¥ BEll[# AII-AmedcaCity TO: 1993 2001 FROM: 100 N.W 1st AVENUE DELRAYBEACH, FLORIDA 33444 MF ORANDUI David T. Harden City Manager i~Robert A. Barcinski Assistant City Manager DATE: November 26, 2002 SUBJECT: Agenda Item City Commission Meeting December 3~ 2002 Consideration of Bonus Payment to JCD Sports Group ACTION City Commission is requested to consider a bonus payment to JCD Sports Group for golf operations for FY 02 in the amount of $14,700 and for Tennis Operations in the amount of $2,360. Funding is available in account numbers 445-4711-572-34.90 ($10,000), 446-4711-572- 34.90 ($4,700), and 001-4215-575-34.90 ($2,360). BA CK GR 0 UND Attached is a memo received from Mr. Dubin outlining his request for a bonus payment for FY 02 for golf and tennis. Per the terms of the management agreement for golf Mr. Dubin is eligible for up to 15% of the annual fee of $139,980 and eligible for up to 15% of the annual fee of $21,000 for tennis. An analysis of actual accomplishments versus projections is included in Mr. Dubin's memo and has been verified by staff. Also attached is a copy of the performance measures for FY 02 as approved by City Commission with actual numbers and staffs point recommendation. I agree with JCC Sports Group request for the bonus payment for the Tennis Facilities. However, I did not agree with the points assigned for the golf courses. Based on the Mystery Shopper average score of 73.5% for Lakeview Golf Course I deducted 10 points from the point total requested. 561/243-7000 RE COMMENDATION Staff recommends a bonus payment to JCD Sports Group, Inc. for FY 02 for golf operations in the amount of $13,650 and $2,360 for Tennis Operations. Funding is available as follows in account numbers 445-4761-572-34.90 ($9,650), 446-4761-572-34.90 ($4,000) and account 001- 4215-575-34.90 ($2,360). RAB/tas Ftle u sweeney/agenda Doc bonus payment to JCD Sports Group2002 THE EFFORT ALWAYS MATTERS Printecl on Recycled Paper Goff & Tennis Management, Development& Consultation A D~vl$1on of Dubin & Associates November 19, 2002 City of Delray Beach 100 NW 1 st Avenue Delray Beach, FL 33444 Attention: Bob Barcinski Dear Bob, Attached please find the performance measures for fiscal year end September 30, 2002, for BJCE, Inc. regarding Delray Beach Golf Club and Lakeview Golf Club and Dubin & Associates, Inc. regarding the Delray Beach Tennis Center and Delray Swim & Tennis Club. This year JCD Sports Group was faced with many challenges. As you can see from the attached article from the Palm Beach Post, the September 11th attacks devastated South Florida's tourism and the economy has been slow to rebound. Deiray Beach Golf Club Customer satisfaction in all areas has remained extremely high on a consistent basis. JCD Sports Group understands the need to provide a well-balanced operation that meets the needs of our residents. Our restaurant took advantage of local customers that did not travel as extensively as in the past to boost restaurant sales almost $30,000 over last year. Our restaurant sales were within $750 of the one million dollar mark. On a daily basis we balance the needs of our juniors, seniors, golfers, diners, charities, inner city youth and local schools, just to name a few. We strive to find the perfect balance between "Profits and Programs." We are also proud of the fact that we have been able to maintain our level of over 2,000 youth participants in 2002. 1300 Park of Commerce · Suite 272 · Delray Beach, FL 33445 · (561) 265-0255 · Fax (561) 265-2752 In regard to performance measures, we accomplished the following: Restaurant & Banquet net operating income Rounds Youth Participation Customer Survey Acceptable Mystery Shopper Report Permit Holders 2002 2002 Projection Points Actual $ 25,000 10 $ 26,459 83,000 to 88,000 10 83,604 2,000 10 2,541 3.5 25 4.18 10 completed 300 to 350 10 343 We did not accomplish the following: Overall Operational Income Gross Merchandise Sales TOTAL POINTS 2002 2002 Projection Points Actual $ 75,000 15 ($ 104,214) $ 112,000 10 $ 107,717 100 Lakeview Golf Club Lakeview Golf Club is the best executive golf course in South Florida. Customer satisfaction is extremely high in all areas from golf course condition to friendly staff. Once again we hosted the Annual Special Olympics Golf Tournament. We are also proud of the fact that we have been able to increase our level of junior rounds played by over 35% in 2002. In regard to performance measures, we accomplished the following: Golf Rounds Youth Participation Customer Survey A~:ceptable Mystery Shopper Report 2002 2002 Projection Points Actual 50,000 to 58,000 15 51,743 1,000 to 1,500 15 2,236 3.5 25 4.13 10 completed We did not accomplish the following: Net Income Merchandise Sales TOTAL POINTS 2002 2002 Pr~ection Pomts Actual $ 75,000 20 $ 26,755 $ 18,000 15 $ 16,232 100 By contract, we are entitled to a maximum bonus of 15% of our annual management fee of $139,980 or $20,997. In year 2001, BJCE, Inc. received a bonus of $17,500. Based on our overall success and high degree of customer satisfaction, we are requesting a bonus in the amount of $14,700, which is approximately 70% of the maximum bonus. Dubin & Associates, Inc. Delray Beach Tennis Center In tennis, the two most important factors are court conditions and friendly staff. Without question, we have made tremendous strides in both of these areas. Customer satisfaction has improved greatly. In regard to performance measures, we accomplished the following: Membership Increase Daily Play Increase Program Participation Customer Survey (Overall Satisfaction) Acceptable Mystery Shopper Report 2002 2002 Projection Points Actual 400 to 475 15 429 55,000 TO 60,000 15 60,321 5% 10 12% 3.5 25 4 17 10 completed We did not accomplish the following: Increase Lesson Revenue Achieve budgeted deficit TOTAL POINTS 2002 2002 Proje~ion Points Actual $ 220,000 15 $ 209,615 ($ 267,890) 10 ($ 359,649) 100 Dubin & Associates, Inc. and our staff made great strides in improving customer satisfaction this year. A great deal of time and effort was spent on improving court conditions and maintaining a high degree of customer satisfaction. By contract, we are entitled to a maximum bonus of 15% of our annual management fee of $21,000 or $3,150. In year 2001, Dubin & Associates, Inc. received a bonus of $1,980 for the operation of the Delray Beach Tennis Center only. We are requesting a bonus in the amount of $2,360, which is 75% of the maximum bonus. Therefore~ in summary we are requesting a total bonus of: BJCE, Inc. $ 14,700.00 Dubin & Associates, Inc $ 2,360.00 Total $ 17,060.00 This compares to last year's bonus in the amount of $19,480. As always, we respect your decision and look forward to a very successful year 2003. Hoping this is to your satisfaction, we remain. Yours tmly, Brahm Dubin President CC: Sharon Painter Cindy Doll Don't let the fear factor hurt your finances, 2F Nexandm Terror fallout dooms kosher hotel in Boca On Sept 11. the King D~lfl Hotel & Spa met its Gollgt&. But unlake the Old Testament tale, this David did not emerge from the encotmter vic- tonom, Within months of the terrorist at- tacks, the Boca Raton hotel closed. "There is no more concrete example of howSept. 11 affected bustness than what happened to us," said/~al~ Bloom, a partner m the King David project · The reason' The King David was created for Jewish residents in South Florida, which has the second-largest Jewish population in the country, after New York. Developers hoped JewLsh clients would pay to buy a unit at an upscale hotel that featured kosher food and special services, including a synagogue and rabbi. When not in town, owners could rent out their units. The King David's developers were rlght about demand: fi0 of 91 units sold before the hotel's January opening. And despite the dip in travel after Sept. 11, the King David's own- ers remained optimistic the decline was tem- porary But increasing violence against Jews soon spelled trouble for the King David People teared the hotel could become a target Bloom said there was concern the terror- 1st network knew South Florida pretty well. ~mce several Sept 11 hijackers lived in Palm Beach and Broward counties while they trained in nearby fhght schools "But the final nail in the coffin was these continuous bombings m Israel." Bloom smd The King David even received threaten- lng phone calls Bloom and h~s partners boosted hotel secunt.;; but it wash t enough to erase concerns about the hotel's satety "Our customer was JewLsh and probably ehg]ous,' Bloom smd 'And gwen the choice SEPT. 11: ONE YEAR LATER Tourism, economy slow to rebound Attacks devastated South Florida's winter season By UNDA RAWL$ P~im Barwn Pa~t ~t~f Wnt~r Travel deals at luxury hotels. Baggage inspections ~ at a chddren's xmter p~k Out. f-state Ucense plates ~om ~-flung places ~e C~o~la CUl~ ~o~ps ~at w~t to plea~ ~ur tastes, not the tourist from Toronto A ye~ ~er the te~onst a~cks. ~ese ~e ~ong the unexpected effects on tour- ~ m P~ Beach Counw and the Treasure CoasL 5%s, fo~s ~e he~ened by the fa~ ~at some tourists ~e coming back ~ p~cul~ly m the past ~o months But most m the m- dus~ ~ere a~ee that things may never be the ~e Exen belore the -mole ,)t -upi 11 destrucuon of New York, Washington and Pennsylvania, the aftermath would Mt the Sunshate State's tourismdependent econo- my harder than most. To be sure, Florida's stzzhng housing market was helping shield the state from much of the creeping national recession. But tourism officials now say that the state's economy already had begun to slow "We were already m a tourism recession by Sept. 11.' smd Will Ray, president of the Palm Beach County Cultural Council, which makes grants to local arts groups from the county's 4 percent tax on hotel rooms The 2 percent drop in grants already sustained bv the council "eventually ended up being a 20 oercent cut into grants as a dire-ct, ( SdR O[ l"e buslP~e';s travel rece%lon banner 2000-2001 tourist season, the Sept. 11 attacks would come just as counaes m the southern end of the state, such as Palm Beach, Martin and St. Lucre, were to berm then: high tourist season The effects were devastatmg Dunng the 10 months following the at- tacks, for instance, Palm Beach County ho- tels lost 847 8 mtlhon in gross revenue, compared with the same period a year ago, Tourist Development Council figures show "Florida's economy was swaultaneously h~t by a preczpitous drop m tourist xasits and a d~sruptton to international trade -- both wtat industries in much of the state." eco- nomm development officials lamented m a report shortly after the attacks 'The damage done bv the nationwide Deiray Beach Golf Club Performance Measures City's Proposed Points Obtain a net operating income of $25,000 for restaurant and 10 ,banquet operations ACTUAL $26,485 Achieve a level between 83,000 and 88,000 rounds 10 (rain rounds 83,000 - max rounds 88,000) ACTUAL 83,604 Achieve a participation level of greater than 2,000 youths 10 under the age of 18 in golf course sponsored programs ;(min 1,500 - max 2,500) ACTUAL 2,541 Obtain a net overall operational income of $75,000 15 ACTUAL ($104,214) unaudited ACTUAL 4.18 A. Conduct a mail-in customer satisfaction survey and obtain 25 an overall average rating of 3.5 or better on a 1 to 5 scale. B. Receive an acceptable mystery shopper review. 10  r No ACTUAL AVG. 80,590 Maintain a permit-holder base of between 300 and 350 10 (min 300 - max 350 permits) ACTUAL 343 Achieve gross merchandise sales of over $112,000 10 ACTUAL $107,717 Recommended 10 10 10 25 10 10 100 75 Lakeview Golf Club Performance Measures City's Proposed Points Achieve a level of 55,000 rounds played or better 15 (min 50,000 - max 58,000) ACTUAL 51,743 Achieve a participation level of 1,200 youth under the 15 age of 18. (min 1,000 - max 1,500) ACTUAL 2,236 AcT'uAL 4.13 A. Conduct a mail-in customer satisfaction survey and obtain 25 an overall average rating of 3.5 or better on a 1 to 5 scale. B. Receive an acceptable mystery shopper review. 10 Yes o~ ACTUAL 73.5% Obtain a net income of greater than $75,000 20 ACTUAL $26,755 Achieve gross merchandise sales of over $18,000 15 ACTUAL $16,232 ReCommended 15 15 25 100 55 Delray Beach Tennis Center Delray Swim & Tennis Club Performance Measures City's Proposed Points Achieve a level of 450 memberships 15 (rain 400 - max 475) ACTUAL 429 Achieve a level of 60,000 daily play counts 15 (min 55,000 - max 60,000) ACTUAL 60,321 Increase program participation by 5% Programs include: 10 Special Olympics, Parks & Recreation, Patrons, Lessons, Clinics, Leagues, Juniors, Seniors, and Special Events. ACTUAL 12% increase Achieve a gross revenue for lessons of $220,000 15 ACTUAL $209,615 ACTUAL 4.17 A. Conduct a mail-in customer satisfaction survey and obtain 25 an overall average rating of 3.5 or better on a 1 to 5 scale. B....R.e~ive an acceptable mystery shopper review. 10 e~r No ACTUAL 83.2% Achieve budget of ($267,890) 10 ACTUAL ($359,649) Recommended 15 15 10 25 10 100 75 DELRAY BEACH AII-AmedcaCity 100 N.W. 1st AVENUE TQ:993 David T. Harden 2001 City Manager DELRAY BEACH, FLORIDA 33444 · 561/243-7000 FROM: Ol~obert A. Barcin.ski JC~ Assistant City Manager DATE: April l l, 2002 SUBJECT: AGENDA ITEM CITY COMMISSION MEETING APRIL 16~ 2002 PROPOSED PERFORCE MEASI. TRES FY 01-02 MUNICIPAL COURSEr LAKEVIEW GOLF COURSE AND TENNIS FAC/LIT/ES GOLF Action Commission is requested to approve the attached proposed performance measures for FY 01-02 for the Municipal Golf Course, Lakeview Golf Course and Tennis Facilities. Background The attached performance measures have been amended per City Commission direction given at the April 9, 2002 workshop meeting. The management company would be eligible for up to a 15% bonus of the base fee based on the performance measures Recommendation Staff recommends approval of the proposed performance measures for FY 01-02 for the Municipal Golf Course, Lakeview Golf Course and Tennis Facilities as presented. RAB/tas File: u: sweeney/agenda Doc:Performance Measures FY OI-02 Municipal, I, aloevtew. Tennis Recycled Paper THE EFFORT ALWAYS MATTERS TO: THRU: FROM: SUBJECT: MEETING OF DECEMBER 3, 2002 CONSIDERATION OF A CONDITIONAL USE REQUEST TO ESTABLISH A CHILD CARE FACILITY FOR ALBATROSS CHILD CARE CENTER TO BE LOCATED AT THE SOUTHEAST CORNER OF ALBATROSS ROAD AND CURLEW ROAD (280'1 ALBATROSS ROAD). The property is currently zoned RM (Multiple Family Residential - Medium Density) which allows child care centers as a Conditional Use. The conditional use request is to convert the existing 3,122 square foot residential triplex to a 2,060 square foot child care facility, which will accommodate up to 40 children with ages ranging from infant to 5 years. The proposal also involves demolition of 1,062 square feet of the existing structure to accommodate required parking as well as the installation of associated drop-off and play areas. Additional background and analysis is found in the attached Planning and Zoning Board Staff Report. At its meeting of September 23, 2002, the Planning and Zoning Board held a public hearing in conjunction with the request. There were a significant number of people that spoke in opposition to the proposed child care center. The concern expressed related to the traffic associated with the project and safety concerns associated with vehicles coming to the child care center from outside of the neighborhood. After reviewing the staff report and discussing the proposal, the Board voted 4 to 0 (Borchardt abstained; Krall and Pike absent) to table the request for two months (November 16, 2002) to allow the applicant to prepare a market feasibility study and meet with the neighborhood. At its meeting of November 18, 2002, the Planning and Zoning Board held a public hearing in conjunction with the request. There were a significant amount of persons that spoke against the proposed day care center. Their concerns primarily related to traffic volumes associated with the child care center, vehicular circulation, and pedestrian safety. In addition, a petition containing 565 signatures and four letters opposing the proposed day care center were submitted to the Planning and Zoning Board. The applicant submitted United States Census Bureau demographic information, which indicated there were 186 children in the immediate area within the infant to 5-year old range, together with a list of child care facilities within a three mile radius of the subject property. After reviewing the staff report and discussing the proposal, the Board unanimously voted 6-0 (Jess Sowards absent) to recommend that the request be denied, based on the failure to make positive findings with respect to Housing Element Policy A-12.3 of the Comprehensive Plan and Section 2.4.5(E)(5) of the Land Development Regulations, and that the use would have a significant detrimental effect on the stability of the neighborhood. By motion, deny the Conditional Use request to establish a child care facility for Albatross Child Care Center, based upon a failure to make positive findings with respect to Housing Element Policy A-12.3 of the Comprehensive Plan and Section 2.4.5(E)(5) (Conditional Use Findings), and that the use would have a significant detrimental effect on the stability of the neighborhood. · P&Z Staff Reports and Documentation of September 23, 2002 Agent: Project Name: Project Location: Sergio Catenazzo Albatross Child Care Center 2801 Albatross Road The item before the Board is reconsideration of a conditional use request for Albatross Child Care Center that was tabled by the Planning and Zoning Board at its meeting of September 23, 2002. The action requested of the Board is to make a recommendation to the City Commission to establish a child care facility pursuant to LDR Section 2.4.5(E). The subject property is Lot 261, Tropic Palms. The 0.29 acre property contains a 3,122 square foot residential triplex that was constructed in 1973. The property is currently zoned RM (Multiple Family Residential - Medium Density) which allows child care centers as a Conditional Use. At its meeting of September 23, 2002, the Planning and Zoning Board considered the request for a child care facility. The Board tabled the conditional use application to a time certain date of November 18, 2002 to allow the applicant to prepare a market feasibility study and meet with the neighborhood. The conditional use application to establish a child care facility is now before the Board for reconsideration. The applicant has met with Staff to discuss the concerns raised at the Planning and Zoning Board meeting. The applicant has not submitted a market feasibility study to staff. The applicant has indicated that they will conduct a market feasibility study and will present their findings at the Board meeting. The applicant has also indicated that they have not had the opportunity to meet with the neighborhood. For Further analysis of the proposal refer to the original staff report of September 23, 2002. Waiver: Approve the waiver to LDR Section 4.6.16(H)(3)(j), which requires a five-foot wide landscape island to terminate every row of parking. Conditional Use: Recommend approval of the Conditional Use request to establish a child care facility for Albatross Child Care Center, based upon positive findings with respect to Chapter 3 (Performance Standards) and Section 2.4.5(E)(5) of the Land Development Regulations, and the policies of the Comprehensive Plan subject to the conditions in the attached staff report dated September 23, 2002. Attachment: · Planning and Zoning staff report dated September 23, 2002 Meeting Date: November t8, 2002 Agenda Item: IV.A. PLANNING AND ZONING BOARD CITY OF DELRAY BEACH ---STAFF REPORT--- MEETING DATE: AGENDA ITEM: ITEM: September 23, 2002 IV.A. Conditional Use Request to Allow the Establishment of a Child Care Facility For Albatross Child Care Center. (Quasi-Judicial Hearing) GENERAL DATA: Owner/Applicant ......................... Sergio Catenazzo Agent .......................................... n/a Location ...................................... Southeast Corner of Albatross Road and Curlew Road. Property Size .............................. 0.302 Acres Future Land Use Map ................ MD (Medium Density, 5 - 12 Du/Acre) Current Zoning ............................ RM (Multiple Family Residential- Medium Density) Adjacent Zoning ................ North: OSR (Open Space & Recreation) East: CD (Conservation District) South: RM (Multiple Family Residential- Medium Density) West: R-l-AA (Multiple Family Residential) Existing Land Use ...................... Rental apartments Proposed Land Use .................... Conditional Use Request to Allow the Establishment of a Child Care Facility. Water Service ............................. Existing on site. Sewer Service ............................. Existing on site. DOTTEREL ROAD BUCK)" DENTS BASEBALL LEON WEEKES IV.A. The action before the Board is making a recommendation to the City Commission on a request for Conditional Use approval to establish a child care facility for Albatross Child Care Center, pursuant to LDR Section 2.4.5(E). The subject property is located at the southeast comer of Albatross Road and Curlew Road (2801 Albatross Road). The subject property is Lot 261, Tropic Palms. The 0.29 acre property contains a 3,122 square foot residential triplex that was constructed in 1973. The property is currently zoned RM (Multiple Family Residential- Medium Density) which allows child care centers as a Conditional Use. Therefore, a conditional use application to establish a child care facility has been submitted and is now before the Board for action. The development proposal includes the following: · Partial demolition and conversion of a 3,122 square foot residential triplex to a 2,060 square foot child care facility; · Construction of a driveway for use as a pick-up/drop off area; · Construction of seven parking spaces; · Conversion of the rear yard to a 3,302 square foot outdoor play area; and, · Installation of a dumpster enclosure, bike rack and associated landscaping. The applicant has submitted the following narrative that describes the operation: "Establishment will care for newborn babies to children up to 5 years of age. Maximum capacity 45 children as per the Palm Beach County Rules and regulations governing child care facilities. The number of employees will be 4 at maximum capacity. Services such as cleaning, gardening and general maintenance will be contracted out. There will be vehicles driving in and out of the property generally in the early morning and late afternoon hours, as parent's drop-off and pickup their children. Activities will include Planning and Zoning Board Staff Report Conditional Use Approval - Albatross Child Care Center Page 2 child outdoor and indoor recreation as well as rest and nourishment as per the guidelines of H. R. S." The applicant has indicated that the hours of operation will be from 7:00 a.m. to 6:00 p.m. The site plan application includes a waiver request to the following section of the City's Land Development Regulations: 1. LDR Section 4.6.16(H)(3)0), which requires a five-foot wide landscape island-to terminate every row of parking. REQUIRED FINDINGS: (Chapter 3): Pursuant to Section 3.1.1 (Required Findings), prior to the approval of development applications, certain findings must be made in a form which is part of the official record. This may be achieved through information on the application, the staff report, or minutes. Findings shall be made by the body, which has the authority to approve or deny the development application. These findings relate to the following four areas. FUTURE LAND USE MAP: The use or structures must be allowed in the zone district and the zoning district must be consistent with the land use designation. The subject property has a Future Land Use Map designation of MD (Medium Density Residential 5-12 dwelling units per acre) and is zoned RM (Multiple Family Residential - Medium Density). The RM zoning district is consistent with the MD Future Land Use Map designation. Pursuant to LDR Section 4.4.6(D)(3), within the RM zoning district, child care facilities are allowed as a Conditional Use. Based upon the above, positive findings can be made with respect to consistency with the Future Land Use Map. CONCURRENCY: Facilities which are provided by, or through, the City shall be provided to new development concurrent with issuance of a Certificate of Occupancy. These facilities shall be provided pursuant to levels of service established within the Comprehensive Plan. Water and Sewer: To date no water and sewer plans have been submitted, however water and sewer services exist via a service lateral connection to the existing 6" water main and the existing 8" sewer main within Albatross Road. A fire hydrant exists at the southwest corner of Albatross Road and Curlew Road. No main extensions or upgrades are anticipated with this development proposal. Planning and Zoning Board Staff Report Conditional Use Approval - Albatross Child Care Center Page 3 The Comprehensive Plan states that adequate water and sewer treatment capacity exists to meet the adopted level of service at the City's build-out population based on the current FLUM. Based on the above, this proposal should have little or no impact with respect to water and sewer service. Therefore, positive findings with respect to this level of service standard can be made. Drainage: Paving and drainage plans are not required-for the conditional use analysis. It is anticipated that drainage will be accommodated via sheet flow to pervious areas and/or the installation of an ex'filtration trench system. However, is noted that there is limited space that can be utilized for water retention, as the required play area cannot be used for water retention. If the conditional use request is approved, a paving and drainage plan must be provided with the site plan. Streets and Traffic: Pursuant to LDR Section 2.4.3(E)(2), a traffic statement is required for land use applications that generate 200 or less ADT (Average Daily Trips). A traffic statement has been submitted which indicates that the proposed use will generate 156 new average daily trips. Adequate capacity exists on the surrounding roadway network to accommodate the traffic generated from the proposed use. Based upon the above, a positive finding with respect to traffic concurrency can be made. Parks and Open Space: Park dedication requirements do not apply for nonresidential uses. Thus, there will be no impact on this level of service standard. Solid Waste: The 2,060 sq. ft. child care facility will generate 3.6 tons of solid waste per year [2,060 sq. ft. x 3.5 lbs./sq, ff./year = 7,210/2000 = 3.6 tons]. The trash generated by this proposal can be accommodated by existing facilities. Therefore, a positive finding with respect to this level of service standard can be made. CONSISTENCY: Compliance with performance standards set forth in Chapter 3 and required findings in Section 2.4.5(E)(5) for the Conditional Use request shall be the basis upon which a finding of overall consistency is to be made. Other objectives and policies found in the adopted Comprehensive Plan may be used in making a finding of overall consistency. A review of the objectives and policies of the adopted Comprehensive Plan was conducted and the following applicable policy was found: Planning and Zoning Board Staff Report Conditional Use Approval - Albatross Child Care Center Page 4 Housinq Element Policy A-12.3 - In evaluating proposals for new development or redevelopment, the City shall consider the effect that the proposal will have on the stability of nearby neighborhoods. Factors such as noise, odors, dust, traffic volumes and circulation patterns shall be reviewed in terms of their potential to negatively impact the safety, habitability and stability of residential areas. If it is determined that a proposed development will result in a degradation of any neighborhood, the project shall be modified accordingly or denied. The proposed use is surrounded by residential properties to the south and west. The Leon Weekes Nature Preserve is located to the north and east. In order to limit potential impacts on the adjacent properties, adequate buffers must be provided for the outdoor play area and vehicular areas. The proposed play areas will be surrounded with a 6'-high chain link fence. The conceptual plan provides for sparse landscaping around the play area and vehicular use areas. The conceptual plan indicates the installation of trees spaced 25' on-center along the south property line. It is noted that' as part of the subsequent site plan review a formal landscape plan signed and sealed by a landscape architect will be required. Pursuant to LDR Section 4.6.16(H)(3), a 2'- high hedge (allowed to grow to 6' high) will be required around the perimeter of the property in addition to trees along the north, east and west sides of the property. The trees along the west side of the property will need to be planted 25' on-center. Furthermore, a tree and ground covers must be planted at the terminal landscape islands. These items are included as technical items. The applicant has indicated that the marketing strategy for the day care center will be towards larger professional offices in the area. There will be a smaller percentage of customers from the surrounding residential neighborhoods such as Tropic Palms and Bass Creek. The traffic study indicates that 156 new vehicle trips will be generated by the proposed use. It is recognized that parents not residing within the neighborhood will utilize this facility. While the majority of these trips will come from outside of the neighborhood, this will be off-set local trips from a small number of families that will patronize this facility that reside within the neighborhood. However, given the number of trips generated by the proposed use, there should be no degradation on the neighborhood particularly given its location adjacent to a nature preserve open to the public. In order to address the concern with the number of trips from outside of the neighborhood, a condition of approval is attached that requires the acceptance of children from within the surrounding Tropic Palms and Bass Creek neighborhoods before non-residents. SECTION 2.4.5(E) REQUIRED FINDINGS: (Conditional Use) Pursuant to Section 2.4.5(E)(5) (Findings), in addition to provisions of Chapter 3, the City Commission must make findings that establishing the conditional use will not: A. Have a significantly detrimental effect upon the stability of the neighborhood within which it will be located; Planning and Zoning Board Staff Report Conditional Use Approval - Albatross Child Care Center Page 5 Bt Nor that it will hinder development or redevelopment of nearby properties. The subject property is bordered on the north and east by the OSR (Open Space and Recreation) zoning district, on the south by the RM (Multiple Family Residential - Medium Density) zoning district and the west by R-I-AA (Single Family Residential) zoning district. The Leon Weekes Nature Preserve is located to the north and east, a multiple family residence to the south and single family homes to the west. There are no compatibility concerns with respect to the nature preserve. The nature preserve will add to the recreation options for the day care center. The peak hours of the child care center will coincide with the peak hours of the surrounding residential neighborhood when the parents will drop-off and pick-up their children. There is a concern with respect to the landscape buffers needed to mitigate any impact on the adjacent residences (particularly the single family uses to the west). Compliance with the City's landscape requirements will be reviewed in further detail during the site plan review process. The applicant has submitted a photometric plan that provides illumination to the parking areas. The photometric plan will be discussed in further detail in the Compliance with Land Development Regulations section of this report. It is noted that a decorative fixture and pole should be used since the property is located within a residential neighborhood. Given the hours of operation and the location of the property on the perimeter of the residential neighborhood together with the required buffers as conditioned by staff, the proposed use will not have a significant detrimental effect upon the stability of the neighborhood, nor will it hinder development or redevelopment of nearby properties. COMPLIANCE WITH LAND DEVELOPMENT REGULATIONS: In conjunction with the Conditional Use request a sketch plan was submitted, which has been reviewed by staff. Based upon staff's review of the sketch plan and site inspections, the following technical comments have been identified. Parkinq Pursuant to LDR Section 4.6.9(C)(7)(h), child care facilities must provide 1 parking space per 300 sq.ft, of total floor area. Further, parking is to be designed to enable vehicles to enter and exit a site in a forward manner. The 2,060 square foot facility requires 7 parking spaces and 7 spaces have been provided within an approved parking area on the north and west sides of the structure. Thus, the parking requirement has been met. Planning and Zoning Board Staff Report Conditional Use Approval - Albatross Child Care Center Page 6 Terminal Landscape Islands: Pursuant to LDR Section 4.6.16(H)(3)(j), each row of parking spaces shall be terminated by landscape islands. The conceptual plan does not provide a terminal landscape island at the east end of the parking row on the north side of the building. The applicant has submitted a waiver request to eliminate this landscape island. Waiver Analysis: Pursuant to LDR Section 2.4.7(B)(5), prior to granting a waiver, the approving body shall make a finding that the granting of the waiver: (a) Shall not adversely affect the neighboring area; (b) Shall not significantly diminish the provision of public facilities; (c) Shall not create an unsafe situation; or, (d) Does not result in the grant of a special privilege in that the same waiver would be granted under similar circumstances on other property for another applicant or owner. The layout of the parking area is constrained due to the location of the existing building. In order to provide adequate parking for the property and a drop-off area for the children, it is problematic to incorporate a terminal landscape island at both ends of this parking row. The conceptual plan provides the required landscape island along the west end of the parking row, which will provide a buffer from the public right-of-way. The waiver will not affect the delivery of public services, and will not create an unsafe situation with respect to public safety. Similar circumstances on other properties would lead to the same conclusion. Consequently, a positive finding with respect to LDR Section 2.4.7(B)(5), Waiver Findings can be made. LDR 4.3.3(E) - Child Care Facilities Lot Area: The minimum lot area required for child care facilities is 7,500 square feet. The total lot area of the subject property is 12,630 square feet, thus this requirement has been met. Floor Area: Child care facilities shall contain a minimum floor area of 35 sq. ft. per child, exclusive of space devoted to bathrooms, halls, kitchen, offices and storage. The applicant proposes a maximum of 45 children, which requires a minimum of 1,575 square feet of floor area. The structure will contain 1,416 square feet of area not devoted to Planning and Zoning Board Staff Report Conditional Use Approval - Albatross Child Care Center Page 7 bathrooms, halls, kitchen, offices, and storage. Therefore, the maximum capacity of the child care facility cannot exceed 40 children and is attached as a condition of approval. Outdoor Area: There shall be a minimum of 75 sq. ft. of outdoor play area per child. The play area shall be located on the same lot as the principal use and shall not be located in the front yard setback or adjacent to any outdoor storage area. A 6' high fence or wall shall surround the play area. The applicant has provided a 3,302 square foot outdoor play area, allowing a maximum of 44 children, which does not encroach into the- required front setback areas. A 6'-chain link fence will be provided around the outdoor play area. However, this enrollment capacity is further limited by the amount of floor area mentioned above. Loading Area: A pick-up and drop-off area for children shall be provided in a convenient area adjacent to the building and shall provide clear ingress and egress to the building. A one-way drop-off/drive aisle is proposed on the west side of the structure, which takes access from Albatross Road and exits into the parking tier on the north side of the building. Thus this requirement has been met. Provided the Conditional Use is limited to 40 children the application will comply with LDR Section 4.3.3(E) relating to Child Care Facilities. Other Issues: Dumpster Screening: Pursuant to LDR Section 4.6.6(C)(1), dumpsters, recycling containers, and similar service areas must be enclosed on three sides, and have vision obscuring gates on the fourth side, unless such areas are not visible from any adjacent public right-of-way. The conceptual plan indicates that a dumpster will be located at the east end of the parking tier. However, no detail of the enclosure is provided on the plan. Furthermore, there is no provision for recycling facilities. Therefore, a condition of approval is attached that a detail of the dumpster enclosure, which includes recycling facilities, is provided as part of the site plan review. Lighting: Pursuant to LDR Section 2.4.3(B)(17), a photometric plan has been submitted with the conditional use application. The photometric plan indicates that the proposed maximum foot candle is 7.2. Pursuant to LDR Section 4.6.8(B)(3)(c), the maximum foot candles for local merchants, neighborhood shopping center, or schools is 2.5 foot candles. Based on the intensity of the use and its proximity to single family residences, this category is the most appropriate and is the most restrictive with respect to the Planning and Zoning Board Staff Report Conditional Use Approval - Albatross Child Care Center Page 8 illumination requirements. Since the illumination of the parking areas has an impact on the harmony of the project with the surrounding neighborhood, a condition of approval is attached that the photometric plan be revised to reduce the maximum foot candles to 2.5. Furthermore, since the child care facility will be located with a residential neighborhood, decorative light fixtures and light poles and shielded should be provided and is attached as a condition of approval. Technical Items: While the sketch plan has accommodated most of the staff concerns the following items remain outstanding, and will need be addressed with the site plan application: 1. That dimension of the handicap accessible parking space be a minimum of 12' by 18' with a 5'-wide ramp and so noted on the site plan. 2. That the curbing is eliminated from the public right-of-way and so noted on the site plan. 3. That a 5'-wide perimeter landscape area be provided and so noted on the site plan. That a landscape plan demonstrating compliance with LDR Section 4.6.16 be submitted with the site plan application together with the City's standard calculation sheet. 5. That the existing light pole within the proposed driveway is relocated in accordance with direction by the City Horticulturalist. 6. That building foundation landscaping is provided on the north, south and west sides of the building in accordance with direction by the City Horticulturalist. That a 2'-high hedge be installed and allowed to grow to 6'-high around the outdoor play area and a 2' hedge to be maintained at 3' be provided along the perimeter of the parking areas. 8. That trees are planted along the west side of the property 25' on-center. 9. That a tree and ground covers are installed at all terminal landscape areas. The development proposal is not located within a geographical area requiring review by the Community Redevelopment Agency (CRA) or Downtown Development Authority (DDA). Planning and Zoning Board Staff Report Conditional Use Approval - A~batross Child Care Center Page 9 Site Plan Review and Appearance Board: If Conditional Use approval is granted, a revised site plan must be submitted accommodating the concerns raised through the conditional use petition. Final action on the site plan submittal will rest with the SPRAB (Site Plan Review and Appearance Board). Public Notice: Formal public notice has been provided to property owners within a 500 foot radius of the subject property. Letters of objection, if any, will be presented at the Planning and Zoning Board meeting. Courtesy Notice: Courtesy notices have been provided to the following homeowner's associations, which have requested notice of developments in their areas: · PROD · Presidents Council · Tropic Palms · Town & Country · Delray Racquet Club Letters of objection or support, if any, will be presented at the Planning and Zoning Board meeting. The proposed conditional use is for the establishment of a child care facility. The proposed child care center is to be located within an existing multiple family residence [ha~ w~ll be converted. Provided the conditions of approval are met there should be no compatibility issues associated with the proposed development. The proposed use is consistent with the policies of the Comprehensive Plan and Chapter 3 of the Land Oewlopment Regulations. Positive findings can be made with respect to Section 2.4.5(E)(5) regarding compatibility of the proposed use with surrounding properties. Ao Continue with direction. Bo Recommend approval of the Conditional Use request to establish a child care facility for Albatross Child Care Center, based upon positive findings with respect to Section 2.4.5(E)(5) (Compatibility) and Chapter 3 (Performance Planning and Zoning Board Staff Report Conditional Use Approval - Albatross Child Care Center Page 10 Standards) of the Land Development Regulations, and the policies of the Comprehensive Plan subject to conditions. Co Recommend denial of the Conditional Use request to establish a child care facility for Albatross Child Care Center, based upon a failure to make positive findings. Recommend approval of the Conditional Use request to establish a child care facility for Albatross Child Care Center, based upon positive findings with respect to Chapter 3 (Performance Standards) and Section 2.4.5(E)(5) of the Land Development Regulations, and the policies of the Comprehensive Plan subject to the following conditions: 1. That the maximum enrollment for the child care facility is 40 children; 2. That a detail of the dumpster enclosure, which includes recycling facilities, is provided as part of the site plan review; 3. That the photometric plan be revised to reduce the maximum foot candles to 2.5 and that the light fixtures and light poles be decorative and shielded; and, That a site plan application be submitted and approved by SPRAB, which is in general conformance to the submitted sketch plan and incorporates the Technical Items identified under Technical Items with the staff report noted herein. 5. That children from the surrounding Tropic Palms and Bass Creek neighborhoods shall be accepted for enrollment before non-residents. Attachments: El Conceptual Plan El Location Map Survey Report Prepared By: Scott Pape, Senior Planner · V' d ' ~;d...c)~J._l H o~,~' .~ ~nlz',,I ~ :~c)O_LS'm'-IOC) I DELRA Y CLUB MALLARD DRIVE COUN TRY CONDOS ROAD BUCKY DENT'S BASEBALL SCHOOL GMC TRUCKS SHERWOOD PON~AC TO YO TA USED CARS HERON DRIVE ROAD CURLEW ROAD LEON WEEKES DELRA Y KIA DELRA Y TOYOTA MORSE SA TURN MOBILE HOMES SHERWOOD HONDA MOBILE HOMES AVOCET ROAD CANAL C-15 BLVD. AVENUE L CITY OF DELRAY BEACH, FL PLANNING & ZONINGDEPARTMENT ALBATROSS CHILD CARE CENTER -- DIGn'AL B,4$E M,4P SYSI'EM --- MAP REF Ua 635 , vOL. MEMORANDUM TO: FROM: SUBJECT: DATE: MAYOR AND CITY COMMISSIONERS CITY MANAGER ,~2~'~ AGENDA ITEM # v~ ~ -REGULAR MEETING OF DECEMBER 3, 2002 PROPOSAL/VI! J.&GE FOUNDATION NOVEMBER 27, 2002 This is before the Commission to consider approval of a proposal between the City of Dekay Beach Parks and Recreation Department and the Village Foundation. The proposal provides for a partnership regarding teen programming at Pompey Park with funding in the mount of $23,000.00. The program will consist of academic enrichment, cultural activities, sports/recreation activities, and community involvement activities. The City's Acting Recreation Supervisor IV has met with the Teen Coordinator of Village Foundation and worked out a schedule for teen programming which will not impact any of the current programs at Pompey Park. Funding is avail_able from 115-4101-572-49.90 (Special Projects Fund). Recommend approval of the proposal with the Village Foundation for teen programming at Pompey Park. S:\City Clerk\agenda memos\chevelle folder\Proposal Village Foundatton 12.03 02 [lTV DF DELRflV BEfl[H AII-AmericaCity 1993 2001 100 N.W. 1st AVENUE DELRAY BEACH, FLORIDA 33444 561/243-7000 MEMORANDUM TO: David Marden City Manager FROM: Joe Weldon Director of Parks and Recreation SUBJECT: Proposal from Village Foundation DATE: November 19, 2002 Attached please find a proposal from the Village Foundation for a partnership with the Parks and Recreation Department for teen programming at Pompey Park. The program would cover academic enrichment, cultural activities, sports and recreation activities, and community involvement activities. As you may recall, Mr. Ridley and I met with you on September 4, 2002 and I agreed to use $23,000 from our rotary accounts ($21,528 from account #115-0000-334-71.00 - summer lunch program and $1,472 from account #115-0000-248-15.00 - general miscellaneous) to help partially fund this program this year. Also attached please find a letter from Rudy Collom of the Village Foundation showing how the $23,000 will be expended. Please place this on the December 3, 2002 agenda for City Commission consideration. Director of Parks and Recreation Attachments cc: Joe Safford Chuck Ridley Rudy Collom Ref:dhvillage Prlnted on Rec~led P~er THE EFFORT ALWAYS MATTERS 1993 2001 100 N W. 1st AVENUE DELRAY BEACH, FLORIDA 33444 561/243-7000 MEMORANDUM TO: THROUGH: FROM: David Harden City Manager ~ Joe Weldon ~ Director of ~arks Nathaniel Tucker Acting Recreation Supervisor IV and Recreation SUBJECT: Village Foundation Teen Program Scheduling DATE: November 26, 2002 Please be advised that I met with Rhonda Williams-Turner of the Village Foundation on August 29, 2002. We worked out a schedule for teen programming at Pompey Park that does not impact any of the current programs at Pompey Park. Nathaniel Tucker Acting Recreation Supervisor IV cc: Joe Weldon Director of Parks and Recreation Rodger Ribeiro Recreation Supervisor NT:cp Ref:teenprog THE EFFORT ALWAYS MATTERS Prlnted on Recycled Paper Board of Directors. Major Wllham McCollom R.J. "Rick" Seymour Executive Vice President Muzak of Palm Beach Co-C~atrman Al Williams, President I n t e-~n n g~ ~e~rp ri-s~ s P. Michael Manning Attorney-At-Law Dr. Greg Alma Dean of Education Flonda Adanuc Umvemty Leslie K. Bates, Ed D Dean of Student Affairs Florida Atlannc Umvertzty Lula Butler Director of Commumty Improvement C~ty o! Delray Beach Diane Colona Executive Director Commumty Redevelopment Agency Stephame English Financial Specialist F,rst Umon Bank Gale Fulford, Pnncipal The Vdlage Academy G~s'ele Gehn Semor F~nanc~al Analyst 5un-Senunel Jonathan Klein Arthur J. Kobacker Community Volunteer Captain Leonard M~tchell Palm Beah County School Board Pohce Brenda Montague Coldwell Banker ResMennal Real Estate, Inc. Bill & Chris Oberlmk Commumty Volunteers Commissioner Jeff Pedman Delray Beach C:ty Comm,ssJon Sergeant Javaro S~ms Delray Beach Pohce Department Rabbi Merle Singer Temple Beth El Reverend William H. "Chip" Stokes St. Paul's Epncopal Church Raymond Zimmerman Community Volunteer Charles Ridley Chief Executive Officer E I) II C A I I O lq C O MMUSITY October 28, 2002 Joe Weldon Deh'ay Beach Parks & Recreation 50 NW 1 st Avenue Delray Beach, FL 33444 Dear Joe: This letter is a follow-up to our meeting on October 2, 2002 in which we discussed the continued partnership of Delray Beach Parks & Recreation and the Village Foundation. During the meeting we agreed that Parks & Recreation would provide the Village Foundation with a $23,000 check to be used for teen programming during the 2002-03 fiscal year. The money that will be received from Parks & Recreation will be used for paying personnel and supply costs associated with providing academic, recreation, and social development activities for teenage youth at Pompey Park. Attached is a spreadsheet that outlines that the proposed use of the resources. Upon the completion of the 2002-03 fiscal year, Village Foundation will provide Parks & Recreation with all of the necessary documentation that supports the expenditures that occur. The documentation will include copies of payroll checks, time sheets, and receipts. Village Foundation will also provide Parks & Recreation with an annual report that summarizes the expenditures and also details the activities of the Teen Program for the 2002-03 fiscal year. Joe, the partnership between Delray Beach Parks & Recreation and the Village Foundation is flourishing and we are beginning to profoundly impact the lives of the teenage youth. Please contact me if you have any questions or concems. Sincerely, Rudy Collum Director of Educational Services Administrative Office · 141S.W. 12thAvenue · DelrayBeach, FL33444 ° Phone: (561)276-6755 · Fax: (561)279-7606 Budget Category Budgeted Amount Personnel 3 Activit7 Leaders x 20 hrs x $11.50 x 28 weeks $ 19,320.00 Total Personnel $ 19,320,00 Fringe Benefits $ Variable Benefits ~.. 14.65% x $19,320 Total Fringe Benefits 2,830.00 $ 2,830.00 Supplies Program Supplies (Office & Academic supplies & materials) $ 850.00 Total Supplies $ 850.00 BUDGET TOTAL $ 23,000.00 10129/2002 1 l~oar& oi Directors: Mljor William McCollom CMn'man ILI, '~ck" Seymo~ ~emtive ~ce Pre,dent M~k o[ P~ Bea~ ~er~t P. ~ael Man~g ~orney-At-~w Dr. Gre~ Moix D~ o{ Eduction ~slle ~ Bz~es, Ed.D. De~ o{ S~em FIo~ Ad~uc U~v~rs~ Lula Buder Dkec~or o{ Community Improvemen~ O~ o{ Del~y Beach Bob Ca~ Commum~ Vo[ume~ Diane Domin~uez ~e~dve Dkecmr Commu~ ~developmem Agen~ Steph~e F~ancla[ Spec~st Fizz Union Gale F~lford, ~e Village A~demy G~d~ Ge~ Ma~ur Foun~fion Jonath~ ~ O~taa {or Commum~ Ke~ves~m~ Arthur J. Kob~cker Commum~ Volunteer C~?tnin ~o~lrd Mhch~ Palm Be~ Coun~ School B~rd Police A~da KealW B~ ~ Chin Ober~ Commumty Vol~teers Comsloner Jeff Per'an Dd~y Be~ Ci~ Core.stun 5erge~t Ja~ro Deln7 Bea~ Ponce Depamen~ ~bbi Merle Temple B~ ~ Reverend W~ H 'CMp" Stokes St Paul's Eptscop~ ~ond Z~e~ Co~u~ V olumeer Charles ~eff ~e~e O~cer VILLAGE F_ UNDATION B R Ii x K I N G T H E ~~ CYCLE OF POVERTY t o July 22, 2002 ~ Joe Weldon Dekay Beach Parks & Recreation Dekay Beach, FL 33444 Dear Joe: It was a pleasure discussing the proposed partnership between Delray Beach Parks & Recreation and the Village Foundation'on July 15, 2002. We believe that creating this partnership has the capability to promote a very profound and positive impact on the lives of Dekay Beach youth and the community at large. In addition, it will allow for your department to demonstrate to the community that positive teen programming is occurring at Pompey Park. As we discussed at the conclusion of the meeting, a written proposal that outlines the specifics of the proposed partnership is attached. The proposal includes a detailed description of the academic and recreational activities that the Village Foundation is proposing to provide. Please review the enclosed proposal to determine if it meets your needs and programmatic expectations. Once you have had time to review and discuss the proposal with your staff, please contact us to set up a follow-up meeting to discuss the next phase in which we can discuss the various resources each party can provide. Collectively, the two agencies will create a positive atmosphere with the goal of increasing academic achievement and positive social behavior while providing a recreational outlet for leisure and physical activities. We look forward to heating from your soon. -- . Director of Educational Services /¥illagezCenter Director MACAiKTHUla. P~lm B~' Administrative Office * 141 S.W. 12ttxAvenue * Delray Beach, FL 33444 · Phone: (561) 276-6755 · Fax: (561) 279-7606 PARTNERSHIP PROPOSAL FOR TEEN PROGRAMMING DELRA ¥ BEACH DEPARTMENT OF PARKS & RECREATiON AND THE VILLAGE FOUNDATION, INC. July 22, 2002 Partnership ProposaI-V~ltage Foundation & Delray Beach Parks & Rec Introduction A population that is o~en under-funded by educational and social agencies for afterschool prevention and intervention programs are teenage youth in the middle and high school grades. Middle school youth generally have rates of participation within afterschool programs but as they enter their early teenage years and enroll in high school, participation in afterschool programs tends to decrease. Various reasons account for this decrease in participation including school-sponsored sports teams, the employment opportunities, and the desire to become more socially involved with peers outside of school-related activities. However, within the West Atlantic Corridor community there is a tremendous need for positive and structured afterschool activities for teenage youth as the lure of drugs, crime, and social disorder is very present within the community. All of the middle school age students and many of the high school age students are bused out of the community to attend schools. When they remm to the care of the community, it is late in the afternoon and they are in need of a positive environment in which to have access to academic support, recreational, and social activities. Since 1995, the Village Foundation (formerly known as MAD DADS) has provided positive teen programming to middle and high school aged youth in the Delray Beach community. In the few year, the Teen Program has expanded its programming to provide a wide variety of activities to a constantly growing population of youth. As a result of the growth of the Program and the number of youth being served, there is now a tremendous need to collaborate with a partnering agency that has a similar mission and can provide facility space, staff supervision, and financial resources to further expand the program to offer even more diversified programming. Currently the Village Foundation Teen Program consists of three major components: 1) Academic Enrichment activities, 2) Cultural activities, and 3) Recreational and Sports activities. Collectively, these three components offer youth intervention and prevention activities ~at assist in their transition from adolescence to adulthood. Program Objectives Obiective 1: 75% of the enrolled participants will attend the program on a daily basis, at least 75% of the time, through May 31, 2003 Objective 2: 50% of the participants will demonstrate a 3% improvement of math skills as evidenced by a comparison of 2002 and 2003 standardized achievement test scores through May 3i, 2003. Objective 3: 50% of the participants will demonstrate a 3% improvement of reading skills as evidenced by a comparison of 2002 and 2003 standardized achievement test scores through _May 31, 2003. Objective 4: 75% of the participants who have received discipline referrals will show a decrease in referrals by May 31, 2003. 3 Partnership Proposal-V'dlage Foundation & Delray Beach Parks & Rec Proposed Activities It is proposed that the Village Foundation partner with Dekay Beach Parks & Recreation to provide academic, recreational, and cultural programming for teenage youth during the 2002-03 academic school year. The majority of the proposed programming would occur at the Pompey Park Recreation Center, which is located in the heart of the West Atlantic Corridor neighborhood. This facility is within walking distance for most neighborhood students and is open well into the evening which can accommodate students once they remm to the community. The proposed parmership is projected to serve an average of 60 teens per day, providing a plethora of academic, cultural, and recreational activities with the goals of improving academic achievement and deterring negative and delinquent behaviors. Academic Enrichment Activities Academic enrichment activities provide the students with the opportunity to complete their homework and obtain academic assistance from certified middle and high school teachers through a variety of activities. The Village Foundation proposes that the following academic enrichment services to be conducted at the Pompey Park Recreation Center through the 2002-03 school year: Homework center/tutorial sessions Teen Rap (life skills/social development classes) · SAT & CLAST Preparation classes · College preparation classes (teaching the college entrance basics) · Computer software instruction (teaching to use various software) · Computer technician classes (vocational education) Table 1 outlines the specific times, dates, participants, and location of the proposed academic enrichment activities. Table 1: Academic Enrichment Activities Schedule Activity Time ' DaY Age of # of Where Participants Participants Tutoring/Homework 5:00 - 7:00 p.m. M-TH Middle/High 30 Pompey Park Center Auditorium College Prep Classes 5:00 - 7:00 p.m. T & TH High 20 Pompey Park Auditorium SAT & FCAT Prep 5:0'~) - 7:00 p.m. M & W Middle/High 20 Pompey Park Classes Auditorium Computer Classes 7:00 - 9:00 p.m. T & TH Middle [ 15 Pompey Park _ Computer Lab 4 Partnership Proposal-Village Foundation & Delray Beach Parks & Rec Cultural Activities Cultural activities provide students with the opportunity to participate in activities that aim to broaden their exposure and assist in developing various life experiences. The Village Foundation proposes that the following cultural activities be conducted at the Pompey Park Recreation Center during the 2002-03 school year: Urban Dance (competitive drill team/urban dance) Drama classes (introduction to acting) Etiquette classes (introduction to multi-culturally accepted behaviors) · Modeling (teaching how to become models) Teen Rap (life skills/social development classes) · Talent Shows (opportunity to display personal and team talents) Table 2 outlines the specific times, dates, participants, and location of the proposed cultural activities. Table 2: Cultural Activities Activity Time Day Age of # of Where Participants Participants Teen Rap/Life 7:00 - 9:00 p.m. T & TH Middle/High 40 Pompey Park Skills Auditorium Urban Dance 6:00 - 8:00 p.m. M & W High 20 Pompey Park Gym Urban Dance 6:00 - 8:00 p.m. T & TH Middle 40 Pompey Park Gym Etiquette 7:00 - 8:00 p.m. W Middle/High 20 Pompey Park Auditorium Modeling 8:00 - 9:00 p.m. M MiddlefHigh 20 Pompey Park Pmditorium Drama 7:00 - 9:00 p.m. W Middle/High 20 Pompey Park Auditorium Talent Show 7:00 - 10:00 p.m.3m F of Middle/High 150 Pompey Park Gym the month Partnership Proposal-Ifdlage Foundation & Delray Beach Parks & Rea Sports and Recreational Activities Sports and Recreational activities provide students with the opportunity to participate in competitive sporting events that challenge their physical and mental capacities. Within these activities, students have the oppommity to participate in local and out-of-town leagues, travel throughout the state to compete in tournaments, and become exposed to other sports and recreational activities typically not emphasized in urban neighborhoods. The Village Foundation proposes that the following sports and recreational activities be conducted at the Pompey Park Recreation Center during the 2002-03 school year: · Boys Basketball (practices, league games, and tournaments) · Girls Basketball (practices, league games, and tournaments) · Girls Volleyball (practices and league games) Basketball camps (elementary and middleflxigh) · Tennis (middle/high) · Swimming/Life guard training (elementary and middlefhigh) Table 3 outlines the specific times, dates, participants, and location of the proposed sports and recreational activities. Table 3: Sports and Recreational Activities Activity Time Day Age of # of Where Participants Participants Boys 5:00 - 7:00 p.m. M & W Middle (12 & under) 15 Pompey Park Gym Basketball Boys 5:00 - 7:00 p.m. T & TH Middle (14 & under) 15 Pompey Park Gym Basketball Boys 7:00 - 9:30 p.m. M & W High (16 & under) 15 Pompey Park Gym Basketball Boys 7:00-9:30p.m. T &TH High(18 &under) 15 Pompey Park Gym Basketball Girls 5:00 - 7:00 p.m. M Middle (15 & under) 15 Pompey Park Gym Basketball 9:00 - 11:00 a.m. Sat Volleyball 7,,:30 - 9:00 p.m. W Middle/High 20 Pompey Park Gym 3:00 - 6:00 p.m. Sat Swimming 12:00- 3:00 p.m. Sat Middle/High 20 Pompey Park Pool Tennis 3:00 - 6:00 p.m. Sat Middle/High t 15 Pompey Park Courts 6 Partnership Proposal-V'dlage Foundation & Delray Beach Parks & Rec Community. Involvement Activities Community Involvement activities provides youth and the community at large to come together and participate in a variety of activities that includes everyone from elementary aged children to young adults. Tournaments, step shows, and adult basketball leagues allow individuals of all ages to showcase their talents in events that increase community involvement and also provide fundraising opportunities for the Teen Program. The Village Foundation proposes the following community involvement activities to be conducted at the Pompey Park Recreation Center during the 2002-03 school year: · Midnight Basketball League (practices, league games, and tournaments) · Vocational Education Sessions (education and life skills for young adults) · Step Shows (competitive performances from local schools/groups) · Basketball Tournaments (elementary, middle, high, and adults) Table 4 outlines the activities that aim to increase community involvement and harmony by bringing them together in talent shows, tournaments, and community banquets. Table 4: Community Involvement Activities Activity Time # of Date Age of Where Participants Participants Midnight"' 10:00 - 1:00 a.m. 60 W,F, Sat 19-25 Pompey Park Basketball League January- Gymnasium June 2003 Vocational 9:00 - 10:00 p.m. 60 W, F, Sat 19-25 ' pompey Park Education Sessions January- Auditorium June 2003 Step Show 5:00 - 10:00 p.m. 200 November Elementary- Pompey Park 2002 High Gynmasium Holiday Basketball 8:00 - 5:00 p.m. 100 December Adult Pompey Park Tournament 2002 Fri-Sun Gymnasium Basketball 8:00 - 5:00'p.m. 150 January Elementary Pompey Park Tournament 2002 Fri-Sun Gymnasium Basketball 8:00 - 5:00 p.m. 150 February Middle Pompey Park Tournament 2002 Fri-Sun Gymnasium Basketball 8:00 '- 5:00 p.m. 150 March 2002/ High Pompey Park ,. Tournament Fri-SunI Gymnasi~ 7 £1TY (IF I)ELA;lY BE;ICH CiTY ATTORNEY'S OFFICE 1993 TO: FROM: SUBJECT: 200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444 TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755 Wdter's Direct Line: 5611243-7091 MEMORANDUM November 14, 2002 City Commission Susan A. Ruby, City Attorney Resolution 94-02 The City owns Lots 7 and 13 and acquired the north 16 feet of Lots 7 and 13 by right-of-way deed in 1936. Blocks 7 and 13, including the North 16 feet thereof, is to be conveyed to the CRA which, upon closing, will then be conveyed to Block 77 for the Worthing Place development. The City needs to acquire the property by eminent domain for the purpose of having absolute right to the property to use as a City parking lot and in the alternative in order to convey legal title for the Worthing Place redevelopment project and in order to receive increased substitute parking under the City's agreement with Block 77. The right-of-way deed contains a reverter clause that states that if the north 16 feet is discontinued or abandoned as a public street, the title will revert to the Grantor or his or her assigns. The City has used the north 16 feet for parking purposes for more than 21 years. Dharma has purchased whatever rights the Seller's heirs have in the north 16 feet of the property on Lots 7 and 13. Our office recommends that the resolution authorizing eminent domain be approved in order to secure the land for its current parking purposes or in the alternative to further the redevelopment and receive increased parking to the City under our agreements. Please place this Resolution 94-02 on the November 19, 2003 City Commission SAR.?ssmk -- Attachment cc: David T. Harden, City Manager Barbara Garito, City Clerk RESOLUTION NO. 94-02 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZING AND DIRECTING THE ACQUISITION OF FEE SIMPLE TITLE TO CERTAIN REAL PROPERTY HEREAFTER DESCRIBED FOR THE PUBLIC PURPOSE OF CLEARING TITLE TO THE SUBJECT PROPERTY, FOR PROVIDING PUBLIC PARKING IN DOWNTOWN DELRAY BEACH AND FOR STIMULATING ECONOMIC DEVELOPMENT IN THE DOWNTOWN AREA OF THE CITY OF DELRAY BEACH; DECLARING THAT THE ACQUISITION OF THE PROPERTY IS NECESSARY FOR SAID PUBLIC PURPOSE; AUTHORIZING THE HIRING OF LEGAL COUNSEL, APPRAISERS, AND EXPERTS IN OTHER DISCIPLINES AND THE FILING OF EMINENT DOMAIN PROCEEDINGS PURSUANT TO CHAPTERS 73 AND 74, FLORIDA STATUTES; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. WHEREAS, on or about September 14, 1936, the City of Delray Beach was grantee on a certain Right-of-Way Deed recorded at Deed Book 533, page 103 concerning certain lands more particularly legally described on attached Exhibit "A"; WHEREAS, said Right-of-Way Deed contains a provision stating that the lands conveyed therein be used for public street purposes "with the express understanding and condition that should the same ever be discontinued or abandoned as a public street, the title to the same shall thereupon revert to and revest in the parties of the first part, or assigns"; and WHEREAS, since the date of said Right-of-Way Deed, the City of Delray Beach has continuously utilized the subject lands for public purposes. However, for in excess of twenty-one (21) years, the lands have not been utilized as a public street but rather have been used for public parking; and WHEREAS, the City of Delray Beach is currently a party to asa Agreement with Block 77 Development Group, L.C. dated January 4, 2000; and WHEREAS, pursuant to said Agreement, the City of Delray Beach is obligated to convey certain lands, including those lands described in attached Exhibit "A" to the Delray Beach Community Redevelopment Agency in furtherance of a mixed use, redevelopment project on Blocks 77 and 69, TOWN OF LINTON; and WHEREAS, said redevelopment project will increase public parking in downtown Delray Beach and provide for improvements to Worthing Park, a City park; and WHEREAS, said redevelopment project will include the construction of approximately 219 residential apartment units and approximately 18,000 SF of commercial and/or retail space in the downtown area of the City of Delray Beach; and WHEREAS, said redevelopment project will provide economic stimulation and investment in the Central Business District and will increase night-time activity in the downtown area; and WHEREAS, it is necessary for the City of Delray Beach to remove or eliminate the deed restriction/reverter set forth in the above conveyance so that the City may continue to use the subject property for public parking or, in the alternative, so that the City has clear title to said lands in order to convey the same to the Delray Beach Community Redevelopment Agency for redevelopment purposes; and WHEREAS, the clearing of the title to the subject lands in order to permit its continued use for parking or as a component of a redevelopment project serves the public purpose of redevelopment and stimulating economic development pursuant to Section 166.021(9), Fla. Stat. in the downtown area of the City of Delray Beach. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA THAT: Section 1: The City Commission adopts and ratifies those matters set forth in the foregoing recitals. Section 2: The City Commission hereby finds that it is necessary to acquire the lands described on attached Exhibit "A" for the public purpose of clearing title to the subject property, for providing public parking and for redevelopment and stimulating economic development in the downtown area of the City of Delray Beach. Section 3: The City Attorney or her designee, is hereby authorized and directed to proceed to take all necessary steps, including the hiring of Vance, Doney & MacGibbon, P.A. and other legal counsel, appraisers, and experts in other disciplines, as necessary, for the City of Delray Beach to acquire said property and the City Attorney, or her designee, shall prepare in the name of the City of Dekay Beach all papers, pleadings and other instruments required for the purpose, and to see that all eminent domain proceedings are prosecuted to judgment pursuant to Chapter 73 and 74, Florida Statutes. Section 4: The City attorney and the City Manager are hereby authorized and directed to take such other further actions as are reasonably required to fully accomplish the purposes hereinabove directed. Section 5: This Resolution shall take effect immediately upon passage. 2 RES. NO. 94-02 PASSED AND ADOPTED this day of ,2002. CITY OF DELRAY BEACH, FLORIDA Attest: MAYOR City Clerk 3 RES. NO. 94-02 The North Sixteen (16.0) feet of Lot 7, Block 77, TOWN OF LINTON (now Delray Beach), according to the Plat thereof recorded in Plat Book 1, page 3 of the Public Records of Palm Beach County, Florida AND The North Sixteen (16.0) feet of Lot 13, Block 77, TOWN OF LINTON (now Delray Beach), according to the Plat thereof recorded m Plat Book 1, page 3 of the Public Records of Palm Beach County, Florida. " j S.Z. 1ST AVENUE ~-~ ~ ~a~ ~ ,o.~° ~ ~ ~ '~- e L 5~ 75' ~ I / "'- I ~ 'P ~ 'm I ~ ,.~u,z,.., ~s2{ S.E. 2ND AVENUE  ~AVIHOM ~A~8OGIATEB, INO. 8GALE l' - mO' ~VI~ION~ DATE aY ~URV~YIN~ ~ MA~PIN~ OATE ll/04/~O0~ N~ aD a,w. ~ AVENU~ aU~E ~0~ BY N.L DE~AY BEACH, F~MERLY TO~ OF UNTON BOCA RAT~. FLORIDA 33432 2~ *~ · ~ms ~ ~ ~ ,~o ~ ~ (P.S. 1. PG. 3, P.B.C.R.) ,om a[ ~0~ ~ C~ ~r ~N ~ JOB N0.721~ D~AY [ITY OF DELAflY BEACH CiTY ATTORNEY'S OFFICE 200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444 TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755 Writer's Direct Line: 561/243-7091 1993 DATE: MEMORANDUM November 25, 2002 TO: City Commission David T. Harden, City Manager FROM: Susan A. Ruby, City Attorney SUBJECT: Treehouse The City Commission did not have three affirmative votes to approve the appeal regarding the treehouse as required by the Charter and thus the appeal was not approved. However, the vote was phrased in the negative i.e. to deny the treehouse, which received a two to two vote. While there were insufficient votes to support the appeal, in order to clarify the record I would suggest that the prevailing motion be rescinded/reconsidered for the purposes of clarification and a new motion be made in the positive. Plea~his matter on the December 3, 2002 regular agenda. SAR:smk cc: Barbara Garito, City Clerk MEMORANDUM TO: FROM: SUBJECT: MAYOR AND CITY COMMISSIONERS AGENDA ITEM '~)- REG~ MEETING OF DECEMBER 3, 2002 APPOINTMENTS TO THE PEDESTRIAN AND BICYCI,E TASK TEAM DATE: NOVEMBER 27, 2002 On November 5, 2002 Resolution No. 88-02 was approved, establishing a Pedestrian and Bicycle Task Team for the purpose of identifying the needs of bicyclists and pedestrians within the city and recommending the implementation of a bicycle and pedestrian system consistent with the City's Comprehensive Plan within the City of Delray Beach. The Pedestrian and Bicycle Task Team shall consist of seven (7) members to prepare an assessment and report, identifying the needs of bicyclists and pedestrians within the Delray Beach City limits. The Task Team shall immediately pursue its assigned task with a target date of accomplishment by May 31, 2003 meeting once per month or as required. To qualify for appointment, a person shall either be a resident of or own property, own a business or be an officer, director or manager of a business located within the city. The term is for six (6) months, ending May 31, 2003. To the extent possible, the team should include a representative of the Police Department, a representative of the Parks and Recreation Depamment, one or more bicycle enthusiasts and members from the commtmity at large. The following have submitted applications for consideration: (See Exhibk A) A check to confirm that all are registered voters was completed. A check for code viohtions and/or municipal liens was conducted. None were found with the exception of Richwagen's Delray Bike which has an outstanding invoice of $75.00 for false alarms. Based on the rotation system, the appointments will be made by Commissioner Perlman (Seat # 1), Commissioner Archer (Seat # 2), Commissioner Levinson (Seat # 3), Commissioner McCarthy (Seat # 4), Mayor Schrnidt (Seat # 5), Commissioner Perlman (Seat # 1) and Commissioner Archer (Seat # 2). The Task Team shall elect a chairperson. Recommend appointment of seven (7) members to the Pedestrian and Bicycle Task Team for a term ending May 31, 2003. Exhibk A Vicki Bandel Stephen Blum Richard Connell Stefanie Gapinski Gerald Gomes Bob Griek Vivian I-fill Horenburger, Leslie Jayne King David Kraker Eileen Marks Jean Matthews Albert Richwagen Donna Russo Barbara Scherz Kenneth Schoenberg James Smith Alvin Weinstein Beatrice West Carolyn Zimmerman West Beach West Southwest Northeast Downtown (Delray Sea£ood) Beach North (Swinton) Northwest West Southwest West Downtown Southeast West Beach Beach Beach Northwest Southwest Community at hrge Bicycle enthusiast Parks & Recreation Community at large Community at large Bicycle enthusiast Community at large Community at large Bicycle enthusiast Bicycle enthusiast Community at hrge Parks & Recreation-PB County Bicycle enthusiast Community at large DelrayPolice Department Bicycle enthusiast Community at large Bicycle enthusiast Bicycle enthusiast (WP Bicycle Club) Community at hrge To: Karen Schell From: Jim Smith Date: October 31, 2002 Subject: Applications for Bike/Ped Task Force Attached are four applications for the Bike/Ped Task Force: Jim Smith Jean Matthews Albert Richwagen Dave Kraker Jayne King and Carolyn Zimmerman will be contacting you directly about becoming board members. I've also talked with Jeff Messer and Bob Griek (Delray Seafood). a member - unless he is prohibited because he is a City employee. Jeff is eligible or not. Bob Griek is out of town until next week. will talk with Bob again early next week. Jeff wants to become Please let me know if If Jeff cannot serve, I Here's a geographic recap that may be helpful: Jim Smith, Beach Jean Matthews, West Albert Richwagen, Downtown David Kraker, West Jayne King, Northwest Carolyn Zimmerman, Southwest JeffMesser, Downtown Bob Griek, Downtown Jimtgmith FR'OH : DRIll,EL FAX !i0. : 561 E)~ 8~21 I!o,,. 15 2002 DD:O5PI,I Pi ll.'l.~,l)Z J'l~l 09'42 F%I 56l 243 3774 L'IT't.r CZ. ERg [~B0J f~A.,od~C? CITY OF DELRAY BEACH ~llL BO&RD MEMBER ~PLIC~TION 1993 ~Pleue ~e ox print the follc~ information: ~. P~.dp~ Bus~s _~ess: ....... ~--/ ~ s~tc . Zip Cocl. c / 'oo s. , i ~. a~ y~ a r~s~ voter; If so, wh~ a~ ~u ~s't~c~~ ' / Zip Coclc 8. ~st ~J C~ Boards on ~'bJch you ftc c~t:.cn~y scv4.n~ or Sr~e pseviou~? served. (PI~e include chcc$) / t~. I.~s~ .,my re~ed px,~fess;~.rtal r~,ff, fic.adon5 ~nd license~ which -~ou hold: ..,~. £. s~ It x~ Be ~c appEc~s r~po~l)~W to ~ ~ a ~r a~ca~on i~ ~ ~e. RECEIVED NOV CITY CLERK CITY OF DELRAY BEACH BOARD MEMBER APPLICATION Please rs1:~ o." print the following m£orn'muon: Pri, wipal Ru.4nrss Address: none: i Bus'ness Phone. 6 Are vnu a ~cgistered voter? C~ty City St~t~ ,~tatc Code Zip Co, ]e 7. ~\Vhgt BnatdL,) are you mteteucd in s~.r~'~.~? Please ~. ! :.~, ~n¥ :el:ted pro/¢.~d,-,n.4 CCtti~Cat, iO~l$ 9.11d 'tiCCl'l~,rc', W}~JC}t you your pre.~ept, o[mo.~r rece~ empJoyer, and l~oslfion~ , 1 No;c: T~us appLicauon will remm'~ on hie in thc C:ry Clerk's Office for a pefio,-I of 2 years from the date ~t was sub.,'mttcd ~t wfi] be the applJcant~s mspons:bd,tT to ensuxe t~.at a cut.rtl appficafion :s on ~c. RECE!VED CITY CLERK ~-d L~80-E~-IgS ouT'npe wnlq es e~s:60 EO ~I non PE, tr. av. B,ea?. ~.~.~.c? CITY OF DELRAY BEACH llt BOARD MEMBER APPLICATION 199..3 2001 Please type or print the following information: 2. Home Add~ess: Ci~ S~te Zip Code 3. ~g~ Residence: Ci~ State Zip Code 4. Pfindp~ Business Address: Ci~ State Zip Code 5. Home Phone: Business Phone: E-M~ Address:i .Ce~ Phone: F~: '6. a~yo~a,~st~d,ot~. ~ Ifso. wherea~eyoure~stered?~ 7. ~akBoard(s) are you inte~sted ~ sew~g? Please ~st 8. Hst a~ Ci~, Boards on w~ch you are currently se~g or have pre~ously se~ed: ~lease include dates)" 9. Educafion~ quahficafions: 10. Hst any related prokssion~ ce~ficafions and ~censes w~ch you hold: 11. Give your present, or most recent employe~, and position: 12. Describe experiences, s~s or ~owledge wMch qu~ y~u to Se~e I hereby cc~0 ~at ~ ~e ab~ statements arc ~c, and I ~ee and ~dcrs~d ~at my ~ssmtemcnt ofmatefi~ facts con~ed ~ ~s apP~ca~y cause forfdmre upon my Part of ~y aPpo~ent I may receive. SIGNA~ DA~ Note: Th/s application will remain on file in the City Clerk's Officl~lf~~ars from the date it was submitted. It will be the applicant's responsibil/ty to ensur~ flffi a cuFrkrit ~-pp]ication is on file. s~:rrvct~o^~mCAnON NOV ? 6 2002 CITY CLERK CITY OF DELRAY BEACH ;11; BOARD MEMBER APPLICATION 1993 Please type or print the followini~ information: 1. Las~ iqam~: " Name M.I. Gapinski ~#d~ t,~e Stefanie fgO Lav~ ~ lray Beach FL 3344~ 3. ~g~ Resident: ~ ~ ~ Stye Zip ~e g'. 'H0~e Phone: BusNess Phone: ~ Phone: E-M~ AddresS: F~: 561-276-4152 561-291-0035/ 561-302-0595 gaptnskt~fau, edu 561-297-2058 6~ ~e you a Re~u'ered' Voter? .~ ~ ~ ~ so, wh~e ~e you r~uer~? yes 7. ~ ~d(s) ~e you ~t~ed ~ se~g? . . Affordable ~oustng Advisory Oo~ittee, Co,unity Redevelopment ~gency, 8. ~u ~ GW Bo~& on WNch you ~e ~en~ se~g or ~ve previ~ se~e& ~le~e ~d~ ~tes) 9. Edu~fion~ q~dons: $,~c, - St, Bonaventure University~ ~ -!969 i 0." ~U my related profession~ Ce~fions 'md gcenses wN& you hol& Florfda Dept. of Insurance: gealth; Life and Variable Annuity license il. Giveyo~Fe~ormour~mtmpl~,mdposifion: Coordinator of Public Functions, - 12." De~ ~efim~s, ~ ~ ~edge ~ ~~ to se~e on ~s b~& ~le~e ~ a b~efre~e) ~t.~e livin~ ia C~,~da, I se~ed as a member of the Board of Direetom of the Independen Living Resource Centre and a member tha ~t. ~ontfaee GeBaral ~os:ital Research Foundation. Note. This application w~l remain on file in the City Clerk's Office for a period of 2 years from the date it was submittect It w~l be the applicant's~e that a current application is on ~le. a-'c/-- o / S~ClTYCLF_RK'~,BOARD'~,~PLIC ATIOH STEFANIE GAPINSKI SUMMARY OF QUALIFICATIONS · A specialist in public relations, marketing and communications, with experience in marketing story' :deas to the news media as well as leadership development programs to universities. EDUCATION St. Bonaventure University B.$c. PROFESSIONAL EXPERIENCE St. Bonaventure, NY 1998 - present Florida Atlantic University Boca Raton, FL Coordinator of Public Functions, Dorothy F. oCchraidt College of Arts/Letters · Responsible for the visiting scholar program, Ph.D. program administration, fundraising. 1992 - 1998 University of Manitoba V, rmnipeg, MB Assistant Director, Centre for Higher Education Research and Development · Responsible for the organization, marketing, and management of leadership development programs for university administrators from around the world; as well as for the overall management and operauon of the Centre. 1992 University of Manitoba Winnipeg, MB Assistant to the Executive Director, Universi(y Relations Division · Seconded to handle special projects as assigned by the P::esident of the University of Manitoba. 1984 - 1992 University of Manitoba lnformatton, Comrauni(y and Media Relations Officer Winnipeg, MB INTERESTS AND ACTIVITIES Volunteer work in the Dominican Republic through Orphanage Outreach; fitness; challenging my physical and mental abilities by bungee jumping and white water rafting; stain-glass artistry; cooking and entertaining. ACHIEVEMENTS Recipient of a University of Manitoba Outreach Award for contributions to the community-at-large and for efforts to increase contacts between the university and the general public. Appointment as the Province of Manitoba media liaison for the Canadian Governor General's 1992 Centennial Celebrations. Fellowship recipient from the Coundl for the Advancement and Support of Education District V, the only representative from Canada out of 10 recipients awarded the fellowship that year. Member, Marketing and Public Communications Committee of the St. Boniface General Hospital Research Foundation, Winnipeg. Member, Board of Directors, Independent Living Resource Centre, Winnipeg. Recipient of a $2,500 grant to continue volunteer work in Dominican Republic orphanages in 2000. $90 LAVERS CIRCLE #255 · DELRAY BEACH, FL 33444 PHOHE $61.297.0035 · FAX $61.297.2058 · E-MAlL GAPINSKI{~FAU.EDU Stefanie Gapinski Stefanie Gapinski is the Coordinator of Public Functions in the Dorothy F. Schmidt College of Arts and Letters at Florida Atlantic University, where she administers the Ph.D. in Comparative Studies Pubhc Intellectuals program, oversees the visiting scholar program, and is involved with fundraismg for the Ph.D. program. A specialist in public relations, marketing and communications, Stefanie received her Bachelor of Science from St. Bonaventure University. After receiving her degree, she moved to Canada where she worked over 20 years at the University of Manitoba, holding positions such as the Information, Community and Media Relations Officer; Assistant to the Executive Director, University Relations Division; and the Assistant Director, Centre for Higher Education Research and Development. Throughout her career, Stefanie has received many distinctions. She was the redpient of a University of Manitoba Outreach Awaxd for hex contributions to the community-at-large and for her efforts to increase contacts between the university and the general public. She also received a fellowship from the Council for the Advancement and Support of Education District V, the only representative from Canada out of 10 recipients awarded the fellowship that year. In 1992, she was appointed as the Province of Mamtoba media liaison for the Canadian Governor General's Centennial Celebrations. Stefanie believes in the importance of giving back to one's community, and so she has volunteered her time for organizations such as the Boy Scouts of Canada, a hospital cancer research foundation, a food bank, and the independent living movement for persons with disabilities. Lately, her volunteer efforts have focused on under-privileged children in developing countries. Since 1999, she has worked at two orphanages in the Dominican Republic: The Hope of a Child Orphanage in Montecristi and The Good Samaritan Orphanage in Esperanza. In January 2000, she received a grant to continue her volunteer work in Dominican Republic orphanages. Stefanie's strengths lie in many areas: organizational ability, interpersonal communications, marketing and pubhc relauons, and financial aptitude. She is a person with an "I make it happen" attitude who has the ability 'to get things done." DELRAY BEACH .~,,,.c? CITY OF DELRAY BEACH lilt BOARD MEMBER APPLICATION 1993 2001 Please type or print the following information: 2. Home Address: City State Zip Code '/06 Al ff' ..c--_~ ~.r-. ,~_ ~,z~r. /'?.~ /~L 3. ~ Residence: ~ S~te ~p Code 4. P~dp~ Business Address: ~ S~te Zip Code 5. Home Phone: Bus, ess Phone: E-M~ Address: C~ Phone: F~: 6. ~e you a re~stered voter? If so, where are you re~stered? 7. ~at Board(s) are you interested ~ se~g? Please ~st ~ order of preference: ' ~. ~St h Ci'~, Boards on w~ch you a~e cunenfly se~g o~ have pre~ously se~ed: ~lease include date0 10. ~st any rehtcd profession~ ce~ficafions and Ucenses W~ch you hold: .... 11. Give your present, or most recent employer, and position: 12. Des~be ~pefimces, ~s o~ ~owlefl~ w~ch q~ you to se~e on ~s bo~d: &lease ~ch ~ brief I hereby c~ ~at ~ ~e a~ve Statements ~ ~e, ~d I ~ce ~d ~d~d ~at ~y ~ssutcmcnt ofmatcd~ facts cont~~~~~ u~n my p~ of ~y appoM~ent I may ~eceive. S~G~~ D~ Note: This application will remain on file in the City Clerk's Office for a ~crigd 9f 2 years from the date it was submitted. It will be the applicant's responsibility to ensure that a i[~h~_~[i~l't~ on file. ~ClTYCI~.,R~OARI~d~ U~ATIOI4 NOV 1 5 ~002 CiTY CLERK ~L~ot~¥B~CH BOARD MEMBER APPLICATION 1993 2001 Please .type or print the following information: 2,' Home _Addre~: ' 3. 'Legal Residence: City State ~ ~_i_°~e~. 4. Principal Busines_s Ad. ss: Sate Zip ode 5. Home Phone: Business Phone:' E-Mail Address: Cell Phone: Fax: 67 ~re you a regaled voter? If so, where are you registered? 7. What Board(s) are you interested in serving? Please list in order of preference: 8. List all City Boards on wkich you are currendy serving or have previously served: (Please include dates) 9. Educational qualifications: 10.' List any related professional certifications and licenses which you hol& 'i 1. Give your present, or most recent employer, and position: 12. Describe exlx'tiences, sldll~ or lmowledge whidkqualifi~vou to serve on this board: (Please attach a bt/el resume) SIG~ATUR~' "~ pr ~.~ DATE Note: This application will remain on file in the City Clerk's Office for a period of 2 years from the date it was submitted. It will be the applicant's responsibility to ensure that a current atmlic, axian_is.a~file. NOV - 7 2002 CITY CLERK DELI~Y BEACH CITY OF DELRAY BEACH BOARD MEMBER APPLICATION 1993 2001 Please type or print the following information: 2. Home Address: C~t>l] r?~,~ S Zip Col:lc 3. N~ Residence:C~'~' State ~p Code 4. Pfincip~ Bus, ess Address: Ciw ~ S~te Zip Code 5. Home Phone: Business' Phone: E-M~ Address: Ce] Phone: Fax: If so, where ~e you re~stered? 6. Are youare~steredvoter? ~ e~. ~;~ 7. ~at Board(s) are ~ou ~tereste se~g? Pieas~st m order of preference: 8. Nst ~ Ci~ Boards on w~ch ~ou are cure.fly se~dng or have pre~iously se~d: ~lease Ncluae dates) 9. ~ucaOon~ q~fica~ons: 10. ~st any related profession~ ce~ficadons ~d Nce~ses wNch you hold: 11. Give your present, or most recent employer, and position: 12. Describe experiences, s~s or ~owled~ w~ch q~ you to se~e on ~s board: ~lease amch a brief resme) I hereby ce~ ~at ~ ~e a~ve smt~en~ are ~e, md I a~ee and ~dersmd ~at my ~ssmtement of matefi~ hcts con ' ed ~ ~s apphcafion may cause forfeiture upon my p~ of my appo~ent ~ may recdve. SIGNA~ D Note: This application will remain on file in the City Clerk's Office for a period of 2 years from the date it was submitted. It will be the applicant's responsibility to ensure that a current aor~licationJs on file. NOV - 8 ?nfl? CITY CLERK Vivian K. Hill Vivian has been a beach property owner since 1981 and a Florida resident since 1999 when she and her husband Roger moved from New Jersey. She has served on the Chatham Township New Jersey Township Committee for 7 years and was Deputy Mayor for 5 years. She also served as a legislative aide to New Jersey State Senator Leeana Brown. She was a member of the Morristown Junior League and a graduate of the College of William and Mary. The Hills are members of the First Presbyterian Church of Delray Beach and the Delray Beach Club. 03/08/02 FRI UI~:ZZ J~.~.~ ~Ul :'4;~ ~7/4 CITY CLERK ® BOARD MEMBER APPLICATION 1993 2001 Please type orpzmt the followin~ infozmation: 5. Home P~o~e: ~usmess Phone. E_~ ~d~ess: C~ Pbo~c: -8. '~st ~ C,~'Bo~d, on wh,ch you arc c~en~· s~ng or 12. 'DescnBe expefimc~/s~s m ~owledge ~ch~ua~ yea t~s~e onj~ bo~: ~lcase attach a baeftesume}~ ! hezeby c~ ~t ~ ~ ~ stat~cn~ ~e ~e, md I a~ee an~unde~nd ~at any ~smte~nt ofm~[~ fac~ coat~~~fio~ ~nse f~f~ upon my ~n of any appom~t 1 may~ecezv~ Note: This apphcation will remain on t'ge m the City Clerk's Office fox a period of 2 yeats from the date it was submitted. It will be the applicant's responsibility to en~me that a curxent applicaaon is on file. S'~IT y CLEMX~OA RDtAPPL~' ATIO~, RECEIVED HAR - R 200?. CITY CLERK LESLIE BRUGH HORENBURGER 510 North Swinton Avenue Delra¥ Beach, Florida 33444 (561)278-6389 EDUCATIONAL BACKGROUND 1971 Spalding University Louisville, Kentucky B.A. - Mathematics Cum Laude EMPLOYMENT HISTORY 1988 - Present MIG Realty Advisors, Inc. West Palm Beach, Florida Senior Portfolio Manager Asset Management Responsibilities Equity Investments - Supervised on-site management of nine commercial properties located nationally with 500,000 sf of retail space including two outlet malls and 100,000 sf of office space; responsible for annual budget and business plan, preparation, review and approval and monthly/quarterly financial performance review and reporting. From 1989 through January 1998 responsible for asset management for limited partner (LP) of portfolio of 11 self storage facilities located nationally; negotiated for LP during securitization of debt ($15.0M) to be included in $63.0M secured portfolio (1992); responsible for review of reporting for compliance with loan documents; negotiated and consummated $33.75M sale of 10 facilities (1996) and ultimate disposition of entire partnership portfolio including one parcel of vacant land (1998); acted as LP's liason to resolve distribution dispute requiring legal action and ultimate settlement. Responsible for the sale of other assets valued at over $28.0M. Participating and Traditional Debt Investments - Since 1994 have been responsible for loan compliance for over $280.0M in loans on 30 properties; negotiated loan workouts on $25.0M in debt; underwrote, structured, negotiated terms and supervised construction draw process for $24.22M constructfon/permanent loan; coordinated the refinanc'mg of approximately $30.0M in bond debt through the re- issuance of new bonds to finance a 300 unit apartment complex and currently working on a $13.0M refinancing for a 387 unit apartment high rise; responsible for annual business plans for participating debts; completed foreclosure of two assets. 1988 - Present (Cont'd) Portfolio Responsibilities Responsible for preparation of quarterly and annual reporting for six portfolios-with a total of 32 investments (both residential and commercial; current value over 750.0M) for pension fund clients. Designated Employee of the Month by Senior Management - February 1995; August 1996, August 1997 1987-1988 Condovest, Inc. Miami Beach, Florida Senior Property Manager Supen~i~ management/rental of ninety-unit condominium, thirty-unit apartment complex and 100,000 sf shopping center for FADA contractor; prepared FADA reports. 1985-1987 Sun OP Management, Inc. Boynton Beach, Florida Property Manager Managed foreclosed property for insolvent savings and loan including 500,000 sf of retail space located in Florida and supervised management of 92 rental units in condominium. 1984-1985 Laver's International Tennis Resort, Delray Beach, Florida Brentwood Properties, Inc., Boca Raton, Florida Leasing Agent Leased apartments; seasonal and annual. 1983-1984 Boca Polnte Country Club (P.M.A. Realty, Inc.) Boca Raton, Florida Sales Associate 1972-1984 Prior to 1984 professional experience included the management of a 50 unit luxury condominium, commercial leasing for a Boca Raton developer (Knight Enterprises, Inc.), purchasing agent for a Denver based construction company in Vail, Co., office manager for an Aspen, Co. single family home/commercial builder and merchandising manager for two single family home builders in South Florida, Leadership Homes and General Development Corporation. PROFESSIONAL DESIGNATIONS: Licensed Flodda Real Estate Broker Ucensed Florida Mortgage Broker CClM (Certified Commercial Investment Member- Commercial Investment Real Estate Insitute) Till II '3. I.-L~. ~01 243 3??4 ¢l'J*~. (~iaElll( ,':. ~o,,' CITY OF DEI,.ILA~Y BEACH BOARD MEMBE~II APPLICATION '1993 2.00 I / ~ ~s'denc~' __ f ~i~ ~ ~ '- ' I ..... ' 5. Hr, me Phone: ~ hone. ~-M~ Address:..I [ [ C~ Phone' ~ ~x; . · ~ ~. 7. ~ar ~nar~(sl arc .,,., mccrcstc~ sc~g? ~leue ~sr ~ order of~ferenc~: ( ,L~Z ~_~~ ~~~ ....... ~!1 ~,,y ~...r~ ,-,,~ ,, },ich you n=c ~ur~cnd~- sc~g or h~ pz~us]y ,c~: ~i~c include ~ac;~)- ' ' ~ "' - ............ I ,o ~,..,,?" ,:,..=~ n.4~,,., .-~,,~=~,i,.~. ~,d U==n,~,~h~u ho]dj · ~ ~'~--~ . ,ubmi~ed h ~,'~ he tl~e app~c~t's zespon~bd,~ ~o ensur~at a current aDphcafion ,~ nn ~e. l t DEtRAY lEACH CITY OF DELRAY B~I,¢H BOARD MEMBER APPLICATION 1993 2001 Ple-4s, e type or p.rint the following information: mB 2. Home Address: , / City ~ / gqo / 3. ~ Residmce: Ci~ / Sram ~p C~e 4. P~cipM Bus~ess'~&ess': Ci~ Sram Zip ~e 5. Ho~e Phone: Bu~ess Ph~e: ~M~ Address: C~ Phone: F~ ' re~siere~ vote~ ~ ~ 6. Are you a If so, where are F~ re~ster~ ~ 7. ~t Bo~d(0 ~e~og~j~d ~ ~e~ Ple~e~t ~ o~ 0~f~e: 8." L~t ~ Ci~'Bo~ on ~c~ you ~ ~enfly~e~ or ~r~ly se~ ~)e.~c~e ~s)~ 10. L~st ~y rehted pmfessio~ ce~ficafions ~d ~censes w~ch Fou hol& 11. O~e your presen~ o~,most recmt ~ployer, ~posi~on: ./ ......... / I ~eby ce~ ~ ~e a~ye s~n~ ~e ~, ~ I ~ee ~d ~d~ ~t ~ ~s~t~ent of ~ ~ co~d & ~ ~a~n ~y ~e ~ff~e won my pa~ 0f my ~~t I ~y ~c~e. Note: This a~plicafion will remain on file in the City Clerk's Office for a period of 2 years from the date it was submitted. It will be the applicant's responsibility to ensure that a current application is on file. DELKAY BEACH ~ CITY OF DELRAY BEACH 11111 ,O~ MEMBER APPLICATION 1993 2001 /~~q'~ , ,, , , 2. H~e Ad.ess: , 4. P~d Bu~ss Ad~s: ~ S~ ~ C~e S. Ho~ Phon~: B~ess Phone: ~ A~: ~ Phone: F~: 9. ~u~d qu~~: 10. ~st ~y ~ted professio~ c~~s ~d ~cens. wh~ you hold: 1~ ~ ~=c~, ~ ~ ~I~ ~ q~ you m Note~ This application will remain on file in the City Ci=k's Of6ce fo~c~ ~f~:~ ~ from the chte it was submitted. It will be the applicant's ze~pons~ ~ ensure thaU~ ~"tu~cn~--- --Vlq¥~..~on is on file. Nov - 7 CITY CLERK CITY OF DELRAY BEACH BOARD MEMBER APPLICATION 1993 2001 Please type or print the following information: 2. Home Address: ~. ~ R~sid~ce: Ci~ S~te Z~p Code 4. P~ncip~ Business Address: Ci~ S~te Zip Code 5. Home Phone: Bu~ess Phone: ' E-M~ Address: CeB Phone: F~: ~. ~e you ~ registered ~o~ ,z If so, ~here ~re yo~ re~ste~d~ . 7. ~t ~(s) ~e yo~ ~te~d ~ s~ Pl~ fist ~ o=de~ ofp~fe~ce: l fl. nst ~ ~ Bo~ds ~ ~ch Xou ~e ~enfly se~ ~ ~ve pt~o~ly se~ed: ~hase include ~te4 , * -. I ~ . 9. ~o~ ~fi~o~: , , ~0. ~st an~rdated profess~n~ qe~fim~ons md ~enses which you hol~: I ' / 11. Give your pres~g or most recent e~yer, and pgsid~ ~ . ~ I If Des~ ~ences, s~iih or ~owl~ ~ch ~ you to s~e on [s ~: ~l~e a~ch a brief I hereby ce~ ~t ~ &e ~ve sut~ ~e ~, ~d I ~e ma ~&rsma ~t my ~mt~ent of ~t~ con~ ~ a~fi~fion ~y m~ foffd~e u~n my p~ of my ap~h~ent I ~y recdve. SlG~A~ '- - D~ / / Note: This application will remain on file in the City Clerk's Office for a period of 2 years from the date it was submitted. It will be the applicant's responsibility to ensure that a current application is on file. ~ ITY CLE ~K ~ 0AI~D~a~L W..ATI0N DELRA¥ BEACH ~""""d"l~ CITY OF DELRAY BEACH 1993 2001 Please type or print the following information: 3. Legal Residence: City State Zip Code 4. Principal BusinessAddxess: Ci~ State.--,,~C~q 5. Home Phone: Business Phone: :~-Mail Address: Cell Phone: Fax: $ qtl q33 g95Lgg93 6. Areyouaregisteredvoter~ Ifs°'wherearey°uregistered?~//l~ ~/1~ ~. 7. What Board(s) are you interested in serving? Please list in o~ler of preference: 8. List all City Boards on which you are currently serving or have previously served: (Please include dates) £ _.~ 10.-List any related prSfessional certifications'and licenses whicfi you hbld: ' ' - :i. Give your present, or most recent employer, and position: 12. l::Jes~'e:'perienCes, s ' - o} ~o:)l~ge which q~fy yo:: to serve oalt~s l,oani: O'i~e amd: a l~ief res::me) I hereby certify)~t ali the ~ove statement~ we true, and I ~gtee md understaml that any misstatement of material facts Note: This application will remain on file in the City Clerk's Office for a period of 2 years from the date it was submitted. It will be the applicant's responsibility to ensure that a current application is on file. ~Cf'fYCLERK~ OARD'~'PUCATION DELRAY BEACH ~lI.Amerlea C~ ® BOARD MEMBER APPLICATION 993 Please type or print the following information: 1 L~tN~e:: ~ 4. Principal Business Address: Ci~ 5. Home Phone: ~ Bminess Phone: 6. What Board(s) are you interested in se~ing?.. . 7. ~ist all City ~o~ras on hich you are currently se~ing °r h~epr~iously s~ed: (Please incl~s) 8, Educational qualificatio3s: 9. List any re~ted professional ce~ifications ~d licenses which you hold~ i i. Describe expe~iences, skills or knowledge which quali~ you to se~e on this board: (Please a~ch a brief resume) I hereby ce~i~ that ali the above statements are true, and I agree and understand that any misstatement of material fa~s contained In this application may cause fo~eiture upon my pa~ of any appointment I may receive. Note: This application will remain on ~, Clerk s Office for a period of 2 years from the date it was submitted. It will be the applicant's responsibility to ensure that a current application is on file. S\CITYCLERK~BOARD~&PPLICATION Donna Jean Russo 680 Audubon Boulevard D~lray Beach, Florida 33444 561-330-7701 Personal Information: Single United States Citizen Born June 30, 1944 Social Security Number 263-80-8776 Employee Number 105394 Education: December 1975 B.A. College of Education Florida Atlantic University December 1980 Master of Scienoe Human Resources Biscayne College Area of Certification: Specific Learning Disabilities K-12 Expires June, 2005 Employment: 22 years with the Miami-Dade County Public Schools as a Specific Learning Disabilities Teacher: 1999-2000 Sabbatical £eave 1987-1999 Village Green Elementary School 1987-1983 Mae Walters Elementary School 1983-1981 Lake Stevens Middle School 1981-19B0 Bunche Park Elementary School 1980-1977 Hibiscus Elementary 1977-1975 Caribbean Elementary -2- Honors: Teacher of the Year - 1998 Village Green Elementary School Teacher of the Year - 1982 Hibiscus Elementary School Past/Present Leadership Roles: United Teachers Union Alternate UTD Member - 20 years President PTA - Hibiscus Elementary School - 1984 and 1985 Vice President PTA - Hibiscus Elementary School - 1983 Past/Present Committee Participation: Safety and Recycle Team - Past ten years References: Mrs. M. L. Chappotin Principal, Village Green Elementary 305-226-0441 Mrs. Piedad Bucholtz Former Principal, Village Green Elementary 305-279-3920 Mrs. Valerie Carrier Principal, Riviera Middle 305-226-4286 E Mail: carrierv@rms.dade. K12.FL. US DELR&Y BEACH NI-America City BOARD MEMBER APPLICATION 1993 2001 Please type or print the following information: 3. ~g~ Residence: Ci~ State ~p Code 4. P~dP~ Bu~e~s Address:' Ci~ State ~p Code 5. Home Phone: Business Phone: E-M~ Address: C~ Phone: F~: 6. Are you a re~stered voter? ~ ¢ S If, so, ~here¢~z~ ~f you~re~red? 7. ~at Boar~(s) are ~ interested ~ se~g? Plea~ ~st ~ order of~ference: 8. ~st ~ ~' Boards on w~ch you are cu~endy sen~g o~ have p~e~ously se~ed: '~lease include da~es) 9. Educafionfl au~ficadons: 10. ~st any ~elated professionfl certifications ~d ~censes WMch you hold: 1. Giw ~our ~'re~t, or most recgnt em~lo~;e~d bosifion: .... 2. Describe ~pefiences, s~¢ or ~oWlefl~ wMch qu~ you to ~e~e on ~s ~d: &lease amch ~ef ~s~¢ _ , hereby ce~ ~t ~ ~e above s~ements are ~e, ~d I a~ee ~d ~ders~d ~at SIGNA~ / ¢ DA~ Note: This application will :emain on file in the City Clerk's Office for al~eri°d_ of 2,~y,e, ar, s_,~t~Kn the date it was submitted. It will be the applicant's responsibility to ensure that a c[:~g~--aF~~ Pon file. N0¥ ? I 002 CITY CLERK DELRAY BEACH BOARD 'MEMBER-APPLICATION 1993 2001 Please type or print the follo~x, inl~ information: 1. Last Name: Name ~! ] SCHOENBERG KENNETH A Home Ad&ess: City Sure Zip Code . ,,1050 BROOKS LANE , DELRAY BEACH FL 33483 3. Leg~] Residence: Cit3, Sure Z~p Code 1050 BROOKS LANE DELRAY BEACH FL 33483 4. Ptin~pal Business Adclzess: City State Z~p Code 1050 BROOKS LANE DELRAY BEACH FL 33483 5. Home Phone: Business Phone: E-Mail Ad&ess: Ceil Phone: Fax: 56!,274-7428. ,561-350-5423, K,ENO SEAUCEMANOR,COM 561-350-5423 561-274-9728 6. Are you a registered voter? ]f so, where ~re you zcgistered? YES DELRAY BEACH, FLORIDA 7. \X'hat Board(s) are you interested in seremg? Please list in order of preference: Bic)/cle-Pedestrian Ta~k Force , · L~s~ all Gq' Bo~ds on ,~'hich you are cu~:enti)' ser~-ing or h~ve p~cviously served: (Please include dates) NONE ' 9. Educauonat'qu~bfic~.t~ons: , B.A. JOURNALISM & PUBLIC RELATIONS FROM DREW UNIVERSITY IN 1981, J.D. RUTGERS UNIVERSITY LAW 'i0. L~st an)' related professions! ce~fications and licenses which you hold: MEMBE,R PENNSYLVANIA BAR 1#54891)~ APPLYING FOR MEMBERSHIP TO FLORIDA BAR (EXAM 2/03) 11. Give your present, or most recem employer, and position: Business and Technology Consultant (Self Employed) .~ ' 1,- Describe experiences, skills or know'ledge which q~li~3' you to serve on this bo~d: (Please attach a brief resume) PLEASE SEE ATTACHED SHEET ........ I hcteb~g.ccttif'y that all the above statements ~e tree, and I agree and tmdetstand that any misstatement of m~tenal fact.< co?~~lication may cause foz'feimre upon my part of any appointment I may receive. Note: ~ ~on ~ remain on file in the CitT Clerk's Office for a period of 2 years from the chte ~t was sub~'i~ed. It will be the applicant's responsibility to ensure that a cu~ent application is on file. Copy of FormTyper Application.max KENNETH A. SCHOENBERG November 14, 2002 Ms. Karen Schell Advisory Board Liaison City Clerk's Department 100 NW 1st Avenue Delray Beach, FL 3~.~.~, Dear Ms. Schell: Please accept my application for a position on Delray Beach's new Bicycle-Pedestrian Task Force. I am an avid cyclist who rides close to 100 miles a week. I have had the pleasure of living in some great bicycling areas like Nor~ern Virginia/Washington DC and Martha's Vineyard, MA. I have been an active member of groups like the Potomac Pedalers, Princeton FreeWheelers, and the League of American Bicyclists. Bicycle and Pedestrian friendly areas can help to reduce traffic and parking problems. It doesn't take long to count a hundred bicyclists riding down A1A on any given day. With better access to the rest of Delray our merchants could benefit from increased business without the need for additional parking lots. I have lived in Delray Beach for four years and plan on staying for many years to come. I would be delighted to lend my time and efforts to bettering the community. Please feel free to call me if you have any further questions. 1050 BROOKS LANE, DELRAY BEACH, FLORIDA 33483 KEN~SEALICF--'vL~UNOR. COM - 561.274.7428 (FAX) 561.274.9728 RECEIVED NOV 1 2002 CITY CLERK 1050 Brooks Lane Delray Beach, FL 33483 www.sealicemanor, com KENNETH A. $CHOENBERG (561) 274-7428 (Home) (561) 350-5423 (Mobile) ken@sealicemanor, com Experience: Consultant, Various Clients, (2001-Present); Delray Beach, FL Provide clients with legal and business guidance and advice. · Review of legal and business terms of complex financing transaction · Consultation on merger and takeover strategies · Design and draft independent sales representative program · Analysis of business models to improve productivity and profitability · Design and review of commercial websites · Site selection and lease negotiations for retail business · Assist corporate 1T departments with software licensing and anti-piracy programs · Design and development of two websites (delraybeachonline.com & sportsthoughts.com) President, CEO & General Counsel, SpecialtyMarts, LLC (1998 - 2001); Delray Beach, FL Launched sister company to Softmart, Inc. specializing in the creation of internet-based businesses and the development of electronic commerce technology. Promoted to CEO and President in March I999. · Handled all legal issues in creation and operation of new corporation · Negotiated and completed favorable agreements with vendors · Directed complete build-out of facility in Florida · Recruited and hired top IT and operational professionals · Oversaw and guided implementation of all internal and external IT systems · Expanded operation to include three operating commercial websites · Negotiated marketing agreements with AOL, Yahoo and many smaller internet sites · Drafted and presented business plan for venture capital financing General Counsel & VP Electronic Services and New Business Development, Softmart, Inc. (1991 - 1998); Downingtown, PA Selected by one of the worM's largest software and hardware resellers to establish and lead an in-house legal department and later as the chief officer in charge of all computing, networking and electronic commerce services. Developed ~trategic initiatives with the CEO including the launch of four corporate affiliates. · Drafted, negotiated and reviewed agreements with Company's vendors and customers · Negotiated and licensed intellectual property fights including cross-licensing, joint development and related transactions · Oversaw several outside law firms resulting in improved work product and substantial cost savings · Effected state, federal and foreign filings, including trademark prosecutions, copyright registrations, and incorporations · Review and negotiated of bank, merger, real estate and venture capital financing deals · Served as primary company contact between Softmart and Microsoft Corporation · Coordinated Company initiative in the software industry's first electronic licensing and automated distribution program · Product Management of the software industry's first electronic pumhasing system (ACCESS), including, design, development and distribution. Processed over $82 million per year in sales (36% of gross sales) · Oversaw and directed development of Internet-based (World Wide Web) software purchasing system · Managed group of 50 professionals and a budget of approximately $10 million · Planned, directed and successfully completed the move of the company and 400 employees to new location including complete fiber-optic network implementation and NOS conversion from Netware to Windows NT with zero down time. Move was completed over a weekend with a team of only six people KENNETH A. $CHOENBERG 1050 Brooks Lane Delray Beach, FL 33483 www.sealicemanor.com (561) 274-7428 (Home) (561) 350-5423 (Mobile) ken @ sealicemanor.com Corporate Counsel and Secretary, America Online, Inc. (1988 - 1991); Vienna, VA Assisted the Chief Financial Officer in the establishment of an in-house legal department. Record of achievement led to appointment as a corporate officer, promotion, and receipt of America Online's first performance bonus (December 1990). Other · Extensive contract drafting, negotiation, and management · Experience in computer, intellectual property, investment, software development and licensing, employment, and corporate legal issues · Litigation team management · Extensive experience with Venture and Institutional Capital Financings · Publication and advertisement review · Reduced outside legal fees by 75% President & CEO, The Grandstand Sports Services, Inc. (1985 - 1996) Founded and operated a nationwide interactive sports forum (website) utilizing a computer networking and online system in conjunction with America Online, Inc. and the internet. Negotiated and executed the multimillion- dollar merger of the Company with America Online in January of 1996. At the time of the merger, The Grandstand was larger than all other online sports services (ESPN, CBS Sportsline, FoxSports, etc.) combined and employed over 100 people across the US. The Grandstand received the AOL Member Choice awards every year they were given by AOL and was voted the Best Community Site on America Online. Sports Writer, The Sports Network (1984 - 1985); Huntington Valley, PA Provided game stories, news stories, statistica! reports, pre and post game analysis, feature stories and instantaneous score updates to the print and electronic media through a computer and satellite link. Manager, Alchemist & Barrister Restaurant (1981 - 1984); Princeton, NJ Position involved ordering and receiving, customer relations, inventory control, and personnel management and scheduling. Assisted in the setup of a computerized inventory analysis and ordering program. Assistant to Director of Public Relations, New Jersey Nets of the National Basketball Association (1980 - 1981}; East Rutherford, NJ Started as a public relations intern to the team during the fall 1980 semester. Created articles and features for game programs, media guides, and publicity releases. Provided assistance to media representatives, interviewed players, coaches, and league and team officials. Education: Computer Experience: Juris Doctor (1988) - Rutgers University School of Law; Camden, NJ Bachelor of Arts, Public Relations and Journalism (1981) - Drew University; Madison, NJ Windows 3.x, 9x, NT, 2000, Netware, HP3000, Ecometry, Macintosh, Stratus, and most major software applications and network operating systems. Professional Affiliation: Pennsylvania Bar Member #54891 D~LRA¥ BEACH BOARD MEMBER APPLICATION 1993 2001 Please type or print the following information: 5. ~ Residence: Ci~ State Zip Code 4. P~dp~ Bus.ess Address: Ci~ S~te Zip Code 5. Home Phone: Bus. ess Phone: E-M~ Address: Ce~ Phone: F~: ~rc you a tc~ster~ voter? If so, 7. ~c ~o~rd(s~ ~e you ~c~ ~ se~? Please ~s~ ~ order or,reference: 8. ~st ~ GW ~ ~ w~ch you ~e mn~ ~ or have pr~om~ se~ed: ~se include ~tes) 9. ~u~fionfl q~ficafio~: 10. hst any rehted profession~ ce~ficafions md ~censes which you hold: 11. Give vour Dreseng or most recent em~lover, and ~osifion: . 1Z Des~ e~d~es, s~ or ~owle~e ~ch q~ yofft9 Se~e on ~s ~a~: ~i~e amch a brief rest) I he.by ce~ ~at ~ ~e able smt~m ge ~, and I ~c ~d ~dc~d ~at ~y ~Ssmt~e~of ~t~fl fa~s SIG~ DA~ Note: This application will remain on file in the City Clerk's Office for a period of 2 years from the date it was submitted. It will be the applicant's responsibility to ensure that a current application is on file. S'CITTCLERK~OAiiD~'LICATION NOV-J3-2002 0]:45 PU RICHMOND-HEINSTEIN 56] 330 9745 P, 02 11/1~/o~ WE~D 11:19 FAX B~ll 245 &?'/'4 1993 2001 RAY BEAI R APPLIG I~TION ~00£ 8. List ~11 City Bo~zds on ,which ~ s.te currend7 serem& o~ h~ve pn 9. ~dt~.ndc~tl you hol~ 11. '~G~vc yo~ present, o: most zcc~z employer, ~d po~don: / / / - CITY CLERK i'tUV-13-zUU(- ut .u~o rll KI~,MIIUI~U-HEIN~IEIN ~)O! 33U ~lq3 r. v~ Mvln $. We/n S Linco/n Street~'E" /~°~'~ (207) 725-2//I Education J.D. (1983), Franklin Pierce Law Center, Concord Ph.D. Mechatdcal Engineering (19.85), Carnegie If M.S. MechamcaI Engineesing (1953), Carnegie Ins B.S. Mechanical Engineering (1951), Uaiversity of Positions 1985 - l~nt Principal, Weinstein Associates Legal and ,technical consultant to industry o design, user communications, and safety as., o Coo_suiting engineer to industry, insttrcrs, m~ lc o Emeritus Professor of Mechanical Engineering University 1985 - 1990 Adjunct Prot'essor or' Law, Fraaklin Pie qH attue of Technology, Piusburgh PA :itut¢ of Technology Michigan ~ products liability prevention. Advise on arance progra~ns. gal profession Public Policy, Carnegie-Mellon e Law Cemer 1972 - 1985 Professor of Engineering & Public Poliq[, Carnegie-Mellon Univemity 1970 Visiting Professor, University of BristolqEagland 1965 - 1985 Professor of Mechanical Engineering, C~negie-Mellon University 1965 Senior Reseaxch Associa~, Max Plank :~stitute for Metal Forming, Dusseldorf, Ovrmany 1961 - 1965 Associate Ptofes, so~ of Mechanical £ngi~ eering, Carnegie-Mellon Univexsity 1955 - 1961 Assistant Professor of Mechanical l~ngir~g, Ca/negie-Mellon University Memberships · Pennsylvania Bar American Society of Mechanical Engineers (ASi 4E), Committee Chairman: Design. Engineering and the Law (1980 - 1990) · ASME. Committee Member: Metalworking Um er Pressure and Materials hx~c~ssing Committees · American Society of Testing and Materials, Exe :uflve Conmxittee on Product Liability · Brookings Institute Panel on Product Liability, 989 - 1990 Office of Technology Assessment. Advisory Pa'~ el fcg Composite Materials. 1985-1987 · Evaluation Panel for the Center for Consumer Ih oclucn Technology of the National Bureau of Standards (Chairman. 1980 - 1982) DELRAY BEACH CITY OF DELRAY BEACH 1993 2001 Please type or print the followin~ information: 2. "' Sta~ Zip Code 3. Legal Residence: City State Zip Code 4. PrindPal Business Address: City State Zip Code 5. Home Phone: Business Phone: E-Mail Address: Cell Phone: Fax: 6. Arc you a registered voter? If so, where arc you registered? 7. What Bsgard(s) are you interesl~l ir3 servif~g? Please list '.m order of ~.~.ference: 1[ 8. List alJ Cit'), Boards on which you are currently serving or have prex4ously served: (Please include dates) 9. Educational q. U cations: 4 ,ot 10. List any related professional certificat/ons and licenses which you hold: 11. Give your present, or most" recent employer, and position: 12. Des~be expeaences, -~ki~s o~ knowledge which qu~ify you to serve On this board: (Please attach a baef resume) I hereby cetk. ify that all the above statements are tru~and ! agree and understand that any ;flisstatcmcnt of material facts contained in this application may cause forfeiture upon my part of any appointment I may receive. Note: This application will remain on file in the City Clerk's Office for a period of 2 years from the date it xvas submitted. It will be the applicant's responsibility to ensure that ~::~r~t~l~c~is on file. g'CTrYCI.,ERK~,~OAI~}kM~ 1.1CATiON e,.~'r¥ gLERK DRRAY BEACH CITY OF DELRAY BEACH lilt BOARD MEMBER APPLICATION 1993 2001 Please type or print the following information: Zimmerman Carolyn E. 2. Home Address: City State Zip Code 212 SW 2nd Ave Delrav Beach F1 33444 3. Legal Residence: City State Zip Code same 4. Pxindpal Business Address: City State Zip Code 5. Home Phone: Business Phone: E-Mail Address: Cell Phone: Fax: 276-1715 6. Are you a registered voter? If so, where are you registered? yes Delray Beach 7. What Board(s) are you interested in serving? Please list in order of preference: Bicycle Task Force 8. List all City Boards on which you are currently serving or have pre~4ously served: (Please include dates) Elder Task Force 9. Educafionfl quahficauons: 10. List any related professional certifications and licenses which you hold: 11. Give your present, or most recent employer, and position: 12. Describe experiences, skills or knowledge which qualify you to serve on this board: (Please attach a brief resume) I have spent my free time for the last seventeen years trying to help the Citizens of Delray Beach improve their lifestyle... I hereby certify that all the above statements are true, and ! agree and understand that any misstatement of material facts contained in this application may cause forfeiture upon my part of any appointment I may receive. Note: This application will remain on file in the City Clerk's Office for a period of 2 years from the date it was submitted. It will be the applicant's responsibil/ty to ensure that a current application is on file. I TO: THRU: FROM: SUBJECT: CITY COMMISSION DOCUMENTATION PAUL DORLING, DIRECTOR OF PLANNinG AND ~2~ING ADOPTION OF COMPREHENSIVE PLAN AMENDMENT 02-2 BACKGROUND Comprehensive Plan Amendment 02-2 was transmitted to the Florida Department of Community Affairs (DCA) for review following a public hearing held by the City Commission on October 1, 2002. This meeting was also the first reading of the Adoption Ordinance (No. 47-02). DCA staff reviewed the amendment and declined to issue an Objections, Recommendations, and Comments (ORC) Report on November 4, 2002. Amendment 02-2 includes one (1) Privately-initiated Future Land Use Map amendment and five (5) City-initiated text changes. No items have been added, deleted , or otherwise modified since the Transmittal Public Hearing. PLANNING AND ZONING BOARD CONSIDERATION The Planning and Zoning Board considered Amendment 02-2 at a public hearing on September 23, 2002, and recommended approval of the transmittal of the amendment to the Florida Department of Community Affairs. As DCA declined to issue an ORC report regarding Amendment 02-2, it was not necessary for the amendment to be brought before the Planning & Zoning Board again, and is consequently proceeding directly to City Commission for adoption. RECOMMENDED ACTION By motion, approve on second and final reading Comprehensive Plan Amendment 02-2 (Ordinance 47-02). Attachments: · Ordinance 47-02 · Comprehensive Plan Amendment 02-2 S:lLongRangelComp~Arnend 02-2102-2 CC-Adoption doc ORDINANCE NO. 47-02 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, ADOPTING COMPREHENSIVE PLAN AMENDMENT 2002-2 PURSUANT TO THE PROVISIONS OF THE "LOCAL GOVERNMENT COMPREHENSWE PLANNING AND LAND DEVELOPMENT REGULATION ACT", FLORIDA STATUTES SECTIONS 163.3161 THROUGH 163.3243, INCLUSIVE; ALL AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A" ENTITLED "COMPREHENSIVE PLAN AMENDMENT 2002-2" AND INCORPORATED HEREIN BY REFERENCE; PROVIDING A SAVING CLAUSE, A GENERAL REPEALER CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the City of Delray Beach exercised the authority granted pursuant to the provisions of Florida Statutes Sections 163.3161 through 163.3243, inclusive, known as the "Local Government Comprehensive Planning and Land Development Regulation Act"; and WHEREAS, via Ordinance No. 82-89, the City Commission adopted the document entitled "Comprehensive Plan - Delray Beach, Florida"; and WHEREAS, the Planning and Zoning Board, as Local Planning Agency, did prepare an amendment to the Comprehensive Plan entitled "Comprehensive Plan Amendment 2002-2; and, WHEREAS, the Planning and Zoning Board, as Local Planning Agency, following due public notice, held a public heating on September 23,2002 in accordance with the requirements of the "Local Government Comprehensive Planning and Land Development Regulation Act"; and WHEREAS, after the above referenced public hearing, the Phnning and Zoning Board, as Local Planning Agency, recommended to the City Commission that the proposed Comprehensive Plan Amendment 2002-2 be transmitted; and WHEREAS, proposed Comprehensive Plan Amendment 2002-2 was submitted to and reviewed by the City Commission; and WHEREAS, following due public notice, the first of two required public hearings on Comprehensive Plan Amendment 2002-2 was held by the City Commission on October 1, 2002, at which time it was authorized to be transmitted to the Department of Community Affairs for required review; and WHEREAS, Comprehensive Plan Amendment 2002-2 was found to be in compliance by the Florida Department of Community Affairs and no ORC (Objections, Recommendations & Comments) Report was issued; and WHEREAS, following due public notice, the second of two required public hearings on Comprehensive Plan Amendment 2002-2 was held on December 3, 2002, in accordance with statutory requirements. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOI.I.OWS: Section 1. That the City Commission of the City of Delray Beach, Florida, hereby declares its intent to exercise the authority granted pursuant to the provisions of Florida Statutes Sections 163.3161 through 163.3243, inclusive, known as the "Local Govemment Planning and Land Development Regulation Act". Section 2. That in implementation of its declared intent as set forth in Section 1 of this ordinance, there is hereby adopted the document enfided "Comprehensive Plan Amendment 2002- 2", which is attached hereto as Exhibit "A" and incorporated herein by reference. Section 3. That the document entitled "Comprehensive Plan - Delray Beach, Florida" is hereby amended pursuant to the document entitled "Comprehensive Plan Amendment 2002-2. Section 4. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 5. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 6. That this ordinance shall become effective upon the date a final order is issued by the Depa~xient of Community Affairs finding the amendment in compliance in accordance with Chapter 163.3184, F.S.; or the date a final order is issued by the Administration Commission finding the amendment to be in compliance in accordance with Chapter 163.3184, F.S. 2 ORD. NO. 47-02 PASSED AND ADOPTED in regular session on second and final reading on this the day of ., 2002. AT'rEST MAYOR City Clerk First Reading Second Reading 3 ORD. NO. 47-02 CITY OF DELRAY BEACH, FLORIDA COMPREHENSIVE PLAN AMENDMENT 2002 Planning & Zoning Board Transmittal Public Hearing September 23, 2002 City Commission Transmittal Pub#c Hearing October 1, 2002 City Commission Adoption Public Hearing December 3, 2002 COMPREHENSIVE PLAN AMENDMENT CITY OF DELRAY BEACH, FLORIDA 02-2 ~ TABLE OF CONTENTS ~ Pa~e AMENDMENTS TO THE FUTURE LAND USE MAP Meridian Parcel TEXT CHANGES - (CITY INITIATED) Definitions Section, Public Schools Facilities Element 4 Policy B-2.1, Future Land Use Element (Concurrency w/respect to public schools) 4 Policy A-2.4, Future Land Use Element (Location of auto dealerships) 6 Inventory and Analysis, Coastal Management Element (Completion of the recent beach renourishment project) 6 Introduction and Summary of Major Features (Planning Area subsection), Objective B-3, Policy B-3.1 & Policy B-3.2, Future Land Use Element, (regarding the provision of services to land within the Planning Area) COMPREHENSIVE PLAN AMENDMENT CITY OF DELRAY BEACH, FLORIDA 02-2 AMENDMENTS TO THE FUTURE LAND USE MAP PRIVATELY INITIATED FUTURE LAND USE MAP AMENDMENT: Meridian Parcel Privately initiated Future Land Use Map amendment for a 16' x 70' parcel of land associated with the Meridian Townhouse Development, from LD (Low Density, 0-5 du/acre) to CC (Commercial Core), and rezoning from R-l-AA (Single-family Residential) to CBD (Central Business District). The parcel is approximately 0.02 TH acres in s~ze and is located on the north side of S.E. 4 Street, approximately 120 east of S.E. 6TM Avenue (Federal Hwy. - Northbound). See Support Document #1 (Meridian Parcel Future Land Use Map Amendment staff report) CITY INITIA TED TEXT CHANGES 1) Location: Pg. PS-22, Definitions Section, Public Facilities Element CONSISTENCY - The condition of not being in conflict with and in furtherance of the goals, objectives and policies of the Comprehensive Plan Elements and the Interlocal Agreement. CONCURRENCY SERVICE AREA LEVEL OF SERVICE STANDARDS - The maximum acceptable percentage of school utilization as ~dentified in the Interlocal Agreement determined by dividing the total number of students for all schools of each type of school in each CSA by the total number of permanent student stations for that type of school in each CSA. DEVELOPMENT ORDER -As defined in Section 163.3164(7) Florida Statutes. EDUCATIONAL FACILITIES - The buildings and equipment, structures, and special educational use areas that are built, installed, or established to serve educational purposes only. FINANCIALLY FEASIBLE FACILITIES PLAN - A plan which demonstrates the ability to finance capital improvements from existing revenue sources and funding mechanisms to correct deficiencies and meet future needs based on achieving and maintaining the adopted level of service for each year of the five (5) year planning period for all schools of each type in each CSA, and each individual school, and for the long range planning period. INTERLOCAL AGREEMENT - Agreement between the Palm Beach County Board of County Commissioners, the Municipalities of Palm Beach County, and the Palm Beach County School Board effective January 25, 2001. LEVEL OF SERVICE (LOS) - The measure of the utilization, expressed as a percentage, which is the result of comparing the number of students enrolled in any school with the satisfactory student stations (FISH capacity) at a given location or within a designated area (i.e., a CSA), e.g., a facility with 1000 students and a FISH capacity of 970, has a LOS of 103%. Also referred to as the utilization of a facility. MAXIMUM UTILIZATION OF CAPACITY - Utilization of facilities to ensure the ADOPTED LOS for all schools of each type in each CSA and each individual school is not exceeded. MUNICIPALITIES - All municipalities in Palm Beach County, except those that are exempt from participating in the school concurrency program, pursuant to Section 163.3180, Florida Statutes. PERMANENT STUDENT STATION - The floor area in a public school facility required to house a student in an instructional program PROPOSED NEW RESIDENTIAL DEVELOPMENT - Any application for residential development or amendment to a previously approved residential development that increases the number of housing units. This shall include any request for any approval of the type that establishes a density of development and which approves a site specific development order on a specific parcel of property. RESIDENTIAL DEVELOPMENT - Any development that is comprised in whole, or part, of dwelling units, for permanent human habitation. SCHOOL BOARD - The governing body of the SCHOOL DISTRICT, a body corporate pursuant to Section 230.21 Florida Statutes. SCHOOL DISTRICT - The district for Palm Beach County created and existing pursuant to Section 4, Article IX of the State Constitution. (2) SCHOOL DISTRICT'S FIVE YEAR CAPITAL FACILITIES PLAN The SCHOOL DISTRICT of Palm Beach County Five Year Work Plan and Capital Budget as authonzed by Section 235.185 Florida Statutes. SCHOOL DISTRICT'S SIX YEAR CAPITAL IMPROVEMENT SCHEDULE - A Table of expenditures and revenues detailing how the SCHOOL DISTRICT shall achieve and maintain the LOS for public school facilities. SITE SPECIFIC DEVELOPMENT ORDER - A development order issued by a Local Government which establishes the density, or maximum density, and which approves a specific plan of Development on a lot or lots pursuant to an application by or on behalf of an OWNER or CONTRACT PURCHASER, including applications initiated by a Local Government. It may apply to a lot or lots under single ownership or a group of lots under separate ownership. It shall apply to all parcels or lots in their entirety taken together of any subdivision. It includes site specific rezonings, special exceptions, conditional uses, special permits, master plan approvals, site plan approvals, plat approvals, BUILDING PERMITS and any Development of Regional Impact as defined in Section 380.06, F S. It may or may not authorize the actual commencement of development. Two (2) or more development orders which indiwdually do not constitute a site specific development order shall be considered a site specific development order if when taken together they meet the definition of a site specific development order. STUDENT GENERATION MULTIPLIER - As published by the SCHOOL DISTRICT of Palm Beach County, the number of students per household determined by type and size of residential unit. STUDENT STATION - The net square footage requirements per student based upon the instructional program to be housed as defined by FISH. TYPE OF SCHOOL Schools in the same categories of education, i.e. elementary, middle or high school. VALID DEVELOPMENT ORDER -A DEVELOPMENT ORDER which: was issued by a LOCAL GOVERNMENT: (1) in accordance with proper procedure and in compliance with state law, and the land development regulations and codes, administrative rules and procedures, and general policies of local governments, and the requirements of all other agencies; (2) not by mistake; and (3) which has not expired, lapsed, or been abandoned, revoked, or canceled, by operation of law, or by the local government or pursuant to the local government land development or pursuant to the local government land development regulations or codes, rules, or policies. Change: ADDITION Comment: These definitions are being added to provide a more comprehensive definition section for this element. All definitions included were taken directly from Palm Beach County's School Concurrency Implementing Ordinance. Some (3) definitions were modified slightly to be specific to the City of Delray Beach, as opposed to the more general references of "Palm Beach County" and "local governments". 2) Location: Pg. FL-26, Policy B-2.1, Future Land Use Element (Concurrency - Requirement of Provision of Facilities) Policy B-2.1 Services and facilities shall be provided pursuant to the levels of service as established elsewhere in this Plan, concurrent with occupancy. For water facilities, concurrency shall mean that direct connection to a functioning municipal system is made. For sewer facilities, concurrency shall mean that direct connection to a functioning municipal system is made; or, where such facilities are not reasonably accessible (as defined in the Land Development Regulations), connection to a septic system that meets the requirements of the County Health Department. For public schools concurrency shall be defined as the improvement is in place or construction appropriations are specified within the first three years of the most recently approved School District of Palm Beach County Six Year Capital Improvement Schedule, as reflected in Table SD-CIP of the Capital Facilibes Element. For streets, drainage, and other facilities concurrency shall be determined by the following: the improvement is in place prior to issuance of the occupancy permit; the improvement is bonded, as a part of the subdivision ~mprovements agreement or simdar instrument, and there is a schedule of completion in the bonding agreement; the improvement is a part of a governmental capital improvement budget; it has been designed; and a contract for installation has been solicited Change: MODIFICATION Comment: This policy is being modified to add a specific reference to Public Schools Concurrency. 3) Location: Pg. FL-24, Policy A-2.4, Future Land Use Element (Location of Auto Dealerships) Policy A-2.4 Automobile uses are a significant land use within the City and as such they have presented unique concerns. In order to properly control these uses and guide them to locations which best suit the community's future development, the following shall apply: 1) Auto related uses other than gasoline stations, wash establishments, and auto parts sales, shall not be permitted in the area encompassed by the CBD zone district. (4) 2) Automobile dealerships shall not locate and/or expand in the following areas: [] Within the CBD zone district; [] West side of Southbound Federal Highway between George Bush Boulevard and S.E. 10th Street; East side of Federal Highway, between George Bush Boulevard and the north property line of the Delray Swap Shop/Flea Market Property; [] On properties fronting George Bush Boulevard, east of Federal Highway. However, on the east side of Federal Highway, south of N.E. 6th Street, an existing dealership may expand onto adjacent property which has an auto sales use and which is zoned AC. 3) Rezoning to AC (Automotive Commercial) to accommodate auto dealerships shall not be permitted west of 1-95. 4) Automobile dealerships shall be directed to the following areas: [] North of George Bush Boulevard, between Federal and Dixie Highways; East side of Federal Highway north of the north property line of the Delray Swap Shop/Flea Market; [] South of Linton Boulevard, between Federal and Dixie Highways; Between the one-way pairs (Federal Highway), from S.E. 3rd__4th Street to S.E. 10th Street; and from N.E. 5th Street to George Bush Boulevard; [] On the north side of Linton Boulevard, between 1-95 and S.W. 10th Avenue, and along Wallace Drive. 5) Auto related uses which involve the servicing and repair of vehicles, other than as part of a full service dealership, shall be directed to industrial/commerce areas. Change: MODIFICATION Comment: At its meeting of December 5, 2000, the City Commission approved Ordinance 33-00, which rezoned Block 112 (between the Federal Highway pairs, from SE 3rd Street to SE 4th Street) from AC (Automobve Commercial) to CBD (Central Business District). As a result of this rezoning, the 4th bullet of the 4th subsection of the above policy (which directs automotive uses to the area from S.E. 3rd Street to S.E. 10th Street, between the Federal Pairs), became in conflict with the 1st subsection (which states no auto related uses are permitted in the CBD zone district). In order to prowde internal consistency for this Policy, the 4th subsection is being modified to reflect the rezoning to CBD. (5) Block 112 has subsequently received site plan approval for an 84-unit townhouse development, known as Mallory Square. This project is currently under construction. 4) Location: Pg. CM-5, Inventory & Analysis, Coastal Management Element (Management of Natural Resources subsection, 3rd paragraph) The City has one of the premier beach erosion control and nounshment programs in the State. In 1973, the City constructed an initial beach restoration, placing 1.6 million cubic yards of sand in a 2.7 mde project area by hydraulic dredging from an offshore borrow area. Maintenance nourishment projects were constructed in 1978, 1984, a¢~ 1992, and 2002. Beach restoration and maintenance is an on-going project, with periodic maintenance nourishments. The next required nourishment is projected for the year 2000 2010. The beach nourishment project has successfully provided storm protection for upland property Since 1973, there has been no damage to upland property due to erosion or storm damage. Change: MODIFICATION Comment: This section is being modified to reflect the mopst recent beach renourishment project, completed earlier this year. 5) A. Location: Pg. INo3, Introduction and Summary of Major Features THE PLANNING AREA The Planning Area is that area which is projected to be the ultimate incorporated area for the City of Delray Beach,._ The City may provide a full or limited ranqe of municipal services to the unincorporated portion of the Planninq Area, before annexation .,,,,4 ,,::: ho,,,~ ,+o ~,,:: ~,..,~ ~ ,-,,,,,,i,.i,,o: o,~,,,:,.,,o ,,,,-,,,~,~,~ :-,,, th,:, r'~,,, The actual limits of the Planning Area are shown in Map 1, and the Planning Area itself is d~scussed in greater detail in the Land Use and Population Data section of the Future Land Use Element. Change: MODIFICATION Location: Pg. FL-28 Pg. FL-28 Pg. FL-28 Objective B-3, Future Land Use Element Policy B-3.1, Future Land Use Element Policy B-3.2, Future Land Use Element Objective B-3 The City of Delray Beach ~ may provide facilities and limited services for that area w~thin its planning boundaries which is not yet annexed. The City shall annex such properties in a timely manner. (6) Policy B-3.1 Services shall be provided to unincorporated areas upon annexation and they shall be at a level which exists for land uses elsewhere in the City under the same or simdar conditions. In circumstances where it not feasible or appropriate to accomplish annexation, individual services (e.g. fire protection, code enforcement), may be provided to unincorporated parcels within the Planning Area, through an interlocal agreement. Th~s paragraph shall not apply to water and sewer services, in areas which received these services from Palm Beach County, prior to annexation. Policy B-3.2 Water and sewer facilities shall may be provided to unincorporated areas by the City, upon demand, in a manner consistent with policies of the City. The provision of water facilities shall be accompanied by an agreement to voluntarily annex upon eligibility unless the property is already eligible in which case, annexation shall precede the provision of services. Comment: The above listed changes are intended to modify the Comprehensive Plan in order to allow certain unincorporated portions of the Planning Area, the ability to obtain water and/or sewer service from Palm Beach County, while not giving up the ability to annex them at some future date. As the Comprehensive Plan is currently written, the City must provide all municipal services upon annexation. In certain situations, it maybe more cost-effective to have Palm Beach County provide some hard infrastructure costs, such as water and sewer services, prior to or even after annexation. The only way to achieve this currently is to remove the subject parcels from the Planning Area, which negates the ability to annex them in the future. S \LongRange\Comp~,mend 02-2\02-2amendment doc (7) COMPREHENSIVE PLAN AMENDMENT 02-2 CITY OF DELRAY BEACH, FLORIDA SUPPORT DOCUMENT #1 Meridian Parcel FLUM Amendment Staff Report SD #t PLANNING AND ZONING BOARD CITY OF DELRAY BEACH ---STAFF REPORT--- MEETING DATE: AGENDA ITEM: ITEM: September 23, 2002 IV. E. ' Future Land Use Amendment From LD (Low Density Residential 0-5 dtuac) To CC (Commercial Core) and Rezoning From R-l-AA (Single Family Residen~t) To CBD (Central Business District) For a Parcel of Land Associated With the Meddian Mixed-Use Development. GENERAL DATA: Owner/Applicant .......................... Mallory II, LLC Agent .......................................... Ironwood Properties, Inc. Location ...................................... North Side of SE 4"~ Street, Approximately 127 Feet East of SE 6~ (Northbound Federal Highway) Property Size .............................. 0.025 Acres Future Land Use Map ................ LD (Low Density Residential 0-5 Du/Acre) Proposed FLUM ........................ CC (Commercial Core) Current Zoning ............................ R-l-AA (Single Family Residential) Proposed Zoning ........................ CBD (Central Business District) Adjacent Zoning ................ North: CBD (Central Business East: South: West: Existing Land Use ................. : .... Proposed Land Use .................... Water Service ............................. Sewer Service ............................. District) R-l-AA (Single Family Residential) GC (General Commercial) & R-l-AA (Single Family Residential) CBD (Central Business District) Single Family Residence Parking associated with the construction of mixed use development that consists of 22 townhouses and 23,228 square feet of office space. Existing on site. Existing on site. J I ' ~ r J liJ ) ATLANTIC I I I AV=NU£ BANK tST S F- 2ND S E. 41~ ~ , CD CONDOS . IV.E. The action before the Board is that of making a recommendation to the City Commission on a privately sponsored Future Land Use Map (FLUM) Amendment from LD (Low Density Residential/0-5 dwelling units per acre) to CC (Commercial Core) and rezoning from R-l-AA (Single Family Residential - Medium Density) to CBD (Central Business District!thfo~r property located on the north side of SE 4"~ Street, approximately 110' east of SE 6 Avenue (Federal Highway). Pursuant to Section 2.2.2(E) of the Land Development Regulations, the Planning and Zoning Board shall review and make a recommendation to the City Commission with respect to FLUM and Rezoning Amendments for any property within the City. The property is the west 16' of Lot 28, Block 120 of the Town of Delray subdivision and contains 0.025 acres. The remainder of Lot 28 contains a single family residence and is zoned R-l-AA. The western 16', which is the subject of the FLUM and Rezoning applications, is not located in the Marina Historic District. This portion of the property contains a driveway and canopy that is attached to the adjacent single family home to the east. The house on the balance of the property was built in 1934 and is located in the Marina Historic District overlay and is considered a contributing structure. At its meeting of December 5, 2000, the City Commission approved a:~'FLUM and Zoning Map change to the western portion of Block 120 of the Town of Delray subdivision. These actions change the FLUM designation from GC (General Commercial) to CC (Commercial Core) and the zoning designation from GC (General Commercial) to CBD (Central Business District). At its meeting of August 28, 2002 the Site Plan Review and Appearance Board approved a site plan for a mixed use development consisting of 22 townhouses and 20 offices known as The Meridian. The applicant proposes to incorporate the western 16' of the subject property into this development to be used for parking and landscape area. This Future Land Use Map Amendment is being processed pursuant to the twice a year statutory limits for consideration of plan amendments (F.S. 163.3187) as part of Comprehensive Plan Amendment-2002-02. L. DR (Chapter 3) PERFORMANCE STANDARDS: Pursuant to Section 3.1.1 (Required Findings), p~ior to approval of Land Use applications, certain findings must be made in a form which is part of the official record. This may be achieved through information on the application, written materials submitted by the applicant, the staff report, or minutes. Findings shall be made by the body which has the authority to approve or deny the development application. These findings relate to the Future Land Use Map, Concurrency, Planning and Zoning Board Sta .... eport The Meridian - FLUM Amendment and Rezoning Page 2 Comprehensive Plan Consistency, and Compliance with the Land Development Regulations. Future Land Use Map: The resulting use of land or structures must be allowed in the zoning district within which the land is situated and said zoning must be consistent with the applicable land use designation as shown on the Future Land Use Map. The proposed parking and landscape area is allowed as an accessory use to the approved mixed use development known as The Meridian in the CBD (Central Business District) zoning district. The CBD zoning district is consistent with the proposed Commercial Core Future Land Use Map designation. The remaining required findings of LDR Section 3.1.1, Concurrency, Comprehensive Plan Consistency and Compliance with the Land Development Regulations are discussed below. Future Land Use Element Policy A-1.7: Amendments to the Future Land Use Map (FLUM) must be based upon the findings listed below, and must be supported by data and analysis that demonstrate compliance with these findings: El Demonstrated Need -- That there is a need for the requested land use. The need must be based upon circumstances such as shifts in demographic trends, changes in the availability of land, changes in the existing character and FLUM designations of the surrounding area, fulfillment of a comprehensive plan objective or policy, annexation into the municipal boundaries, or similar circumstances. The need must be supported by data and analysis verifying the changing demographics or other circumstances. This requirement shall not apply to requests for the FLUM designations of Conservation or Recreation and Open Space; nor shall it apply to FLUM changes associated with annexations when the City's advisory FLUM designation is being applied, or when the requested designation is of a similar intensity to the advisory designation. However, the findings described in the remainder of this policy must be addressed with all FLUM amendments. As noted in the Background section of this report, the FLUM designations of the properties to the west were recently changed to Commercial Core and rezoned to CBD. These actions were taken in order to extend the downtown area as it was deemed more appropriate than the existing uses, which were primarily automotive related. The mixed use project known as The Meridian was approved to the west of the subject property. The eastern boundary of this project is generally uniform except for the subject 16' at the southern end. It has been the developer's intention to incorporate this 16'-wide parcel for additional parking. This action will provide a uniform boundary along the east side of The Meddian development. The proposed FLUM amendment will fulfill Future Land Use Element Policy C-4.2, stated as follows: Planning and Zoning Board Sta,. ,<eport The Meridian - FLUM Amendment and Rezoning Page 3 Future Land Use Element Po#cy C-4.2: A special CBD plan shall be developed jointly by the CRA and the City. It shall address the maximum development which can be accommodated in a competitive market while still retaining the 'Village like, community by-the-sea" character of the CBD. It shaft further identify ~he infrastructure requirements, including parking, which will be needed to accommodate such an intensity of development. Such a plan shall be formally processed as an amendment to the Comprehensive Plan. The plan shall be instituted under the lead of the Community Redevelopment Agency but conducted through close participation with the City's Planning and Zoning Department. The CBD plan has been adopted and is now known as the Downtown Delray Beach Master Plan (adopted March 19, 2002). The Master Plan indicates that "Increasing residential density is absolutely crucial to ensure a healthy and lasting life to the District that will contribute to the vitality of the area." The Master Plan also encourages the establishment of shared parking in the downtown core area. The Meridian development participated in the City's shared parking program. However, despite the shared parking provisions the development is required to contribute six parking spaces ($72,000) towards the City's in-lieu program. Inclusion of the subject property will allow the developer to include additional parking spaces on-site rather than full contribution to the in-lieu program. Therefore, it is appropriate that the proposed FLUM and Zoning Map designations be applied to the property as they are consistent with the Master Plan with respect to parking needs in the downtown area. Since this Comprehensive Plan policy is furthered by the proposed FLUM amendment, a positive finding can be made with respect to fulfilling a demonstrated need. [3 · Consistency - The requested designation is consistent with the goals, objectives and policies of the most recently adopted Comprehensive Plan. The proposal is consistent with the policy mentioned above as well as other goals, objectives and policies of the City's Comprehensive Plan. The FLUM amendment will also address the following Comprehensive Plan Policy: Future Land Use Element Policy A.1.2 - Zoning changes which would result in strip commercial development shall be avoided. Where strip commercial developments or zoning currently exists along an arterial street, consideration should be given to increasing the depth of the commercial zoning in order to provide for better project design. It is recognized that the proposed FLUM and Rezoning will not significantly increase the depth of The Meridian property. However, it will be sufficient to increase the amount of on-site parking and reduce the amount of spaces that will be contributed via the in-lieu fee program. Concurrency - Development at the highest intensity possible under the requested designation can meet the adopted concurrency standards. Planning and Zoning Board Sta,.. <eport The Meridian - FLUM Amendment and Rezoning Page 4 The proposal involves the FLUM amendment on a 0.025 acre parcel from LD to CC and a rezoning from R-l-AA to CBD. With the current FLUM and Zoning Map designations, the property could not be redeveloped, as it does not meet the minimum lot size, lot width, lot depth, and lot frontage in the R-l-AA zoning district. Given the size of the subject property, redevelopment to a use other than the proposed accessory parking area is unlikely. El Compatibility - The requested designation will be compatible with the existing and future land uses of the surrounding area. Based on the finding by the Planning and Zoning Board and City Commission for the FLUM and Rezoning for the balance of The Meridian property, the designation change for the subject property would be compatible with the adjacent single family neighborhood to the east. The existing surrounding land uses are vacant to the north, single family residential to the south and east, and mixed use office and residential (The Meridian) to the west. The FLUM designations of the surrounding uses are CC (Commercial Core) to the north and west, LD (Low Density Residential 0-5 dwelling units per acre) to the east, and GC (General Commercial) to the south. The proposed designation change will "square-off" the district boundaries, which are Commercial Core along the west side of Block 120 and residential along the east side. Based on the above, a positive finding with respect to compatibility can be made. El Compliance'-- Development under the requested designation will comply with the provisions and requirements of the Land Development Regulations. Future 'redevelopment of the 0.025 acre parcel of land will occur in accordance with the City's Land Development Regulations during the site plan review process. Future redevelopment will be directed by the Master Plan, which will comply with the City's Land Development Regulations. It is noted that the conveyance of the 16'- wide parcel will create a nonconformity with respect to the rear setback of the single family residence to the east. The required setback in the R-l-AA zoning district is 10' from the property line. When the property is conveyed to The Meridian, the rear setback would be approximately 5'. In order to compensate for this nonconformity, the property owner of the single family residence must apply and be granted a variance from the Historical Preservation Board. Since the conveyance of the property will eliminate the driveway and carport of the single family residence, an alternative parking design must be provided. A condition of the FLUM amendment is that a variance must be submitted and granted for the rear yard setback and that alternative parking be provided. Given the above, a positive finding with respect to compliance with the Land Development Regulations can be made. Section 3.2.2 (Standards for Rezonin.q Actions): Standards B and E are not applicable. The applicable performance standards of Section 3.2.2 are as follows: Planning and Zoning Board Sts,..<eport The Meridian - FLUM Amendment and Rezoning Page 5 (A) The most restrictive residential zoning district that is applicable given existing development patterns and typical lot sizes shall be applied to those areas identified as "stable" and "stabilization" on the Residential Neighborhood Categorization Map. Requests for rezonings to a different zoning designation, other than Community Facilities, Open Space, Open Space and Recreation, or Conservation shall be denied. The property is located within the area identified as stable on the Residential Neighborhood Categorization Map. The development pattern along SE 6th Avenue (northbound Federal Highway) is such that the western halves of the blocks on the east side of the road have been developed as commercial. The subject property is the only instance where the residential zoning has encroached onto the western half of the block. The CBD zoning district is the established zoning classification along the western half of these blocks. Therefore, residential zoning for this parcel is not appropriate. Therefore, this policy should not be applicable given the existing development pattern. (c) Zoning changes that would result in strip commercial development shall be avoided. Where strip commercial zoning developments or zoning currently exists along an arterial street, consideration should be given to increasing the depth of the commercial zoning in order to provide for better project design. The proposed rezoning would designate the 0.025 piece of land as CBD and thereby slightly increasing the depth of The Meridian property along SE 6~ Avenue (Federal Highway) which is also zoned CBD. The proposed rezoning will allow The Meridian mixed use development to construct additional parking spaces thereby reducing the need for in-lieu parking spaces making for a better office and residential development. (D) That the rezoning shall result in allowing land uses which are deemed compatible with adjacent and nearby land use both existing and proposed; or that if an incompatibility may occur, that sufficient regulations exist to properly mitigate adverse impacts from the new use. The following zoning designations and uses border the property: Direction Zoning Uses North CBD West CBD South GC East R-1-A Atlantic Center Shoppes Mallory Square townhouses Single family residences Single family residences The proposed rezoning is compatible with the adjacent land uses and consistent with the development pattern along Federal Highway. As noted, in the background section of this report, the Planning and Zoning Board and City Commission made a finding that the CBD zoning district is compatible with the Planning and Zoning Board Sta.. ?,eport The Meridian - FLUM Amendment and Rezoning Page 6 surrounding properties when the properties to the north and west were rezoned on December 5, 2000. Section 2.4.5(D}(5} (Rezoninq Findin_clS): Pursuant to Section 2.4.5(D)(5) (Findings), in addition to provisions of Chapter Three, the City Commission must make a finding that the rezoning fulfills one of the reasons for which the rezoning change is being sought. These reasons include the following: That the zoning had previously been changed, or was originally established, in error; That there has been a change in circumstances which make the current zoning inappropriate; That the requested zoning is of similar intensity as allowed under the Future Land Use Map and that it is more al~13rol3riate for the property based upon circumstances particular to the site and/or neighborhood. As noted previously, development pattern along SE 6~ Avenue has been established such that the western half of the blocks have developed as commercial where the eastern half has been developed as residential. The proposed rezoning to CBD is the correct zoning designation for the proposed Commercial Core FLUM designation. The proposed rezoning will "square-off" the zoning boundaries consistent with the remainder of the block. Therefore, a finding can be made the rezoning fulfills Subsections "b" and The property is not in an area that requires review by the DDA (Downtown Development Authority). Community Redevelopment A_clency (CRA): The CRA reviewed the FLUM amendment and Zoning Map change at its meeting of September 12, 2002 and recommended approval. Public Notice: Formal public notice has been provided to property owners within a 500' radius of the subject property. Letters of support or objection, if any, will be presented at the Planning and Zoning Board meeting. Courtesy Notices: Special courtesy notices were provided to the following homeowners and civic associations: Planning and Zoning Board Sta...<eport The Meridian - FLUM Amendment and Rezoning Page 7 · Beach Property Owners · Via Marina · PROD · Presidents Council The proposed amendments will provide a consistent boundary between the west (commercial) half of the block and the east (residential) half. It is noted that the conveyance of the 16'-wide parcel will create a nonconformity with respect to the rear setback of the house. A condition of the FLUM amendment is that a vadance application is submitted and a variance is granted for the rear setback by the Historic Preservation Board and that the parking is relocated elsewhere on the property. Furthermore, the proposed designation changes are consistent with the Downtown Delray Beach Master Plan. Positive findings can be made with respect to Future Land Use Element Policy A-1.7 of the Comprehensive Plan (FLUM Amendment Findings), LDR Section 3.1.1 (Required Findings), and the Goals, Objectives, and Policies of the Comprehensive Plan. Positive findings can be made with respect to LDR Section 2.4.5(D)(5) (Rezoning Findings). Therefore, the proposed FLUM amendment and Rezoning can be recommended for approval based on the findings outlined in this report. A. Continue with direction. Recommend to the City Commission approval of the FLUM Amendment and Rezoning for the subject property, based on consistency with the Downtown Delray Beach Master Plan and positive findings with respect to Future Land Use Element Policy A-1.7 of the Comprehensive Plan (FLUM Amendment Findings), LDR Section 2.4.5.(D)(5) (Rezoning Findings), LDR Section 3.1.1 (Required Findings), and the Goals, Objectives, and Policies of the Comprehensive Plan; or Recommend denial of the FLUM Amendment and Rezoning based on a failure to make positive findings with Future Land Use Element Policy A-1.7 of the Comprehensive Plan (FLUM Amendment Findings), LDR Section 2.4.5(D)(5) (Rezoning Findings) and Section 3.1.1 (Required Findings) of the Land Development Regulations, with the basis stated. Recommend to the City Commission approval of the proposed FLUM Amendment from LD (Low Density Residential 0-5 dwelling units per acre) to CC (Commercial Core), subject to the condition that a variance application is submitted and granted for the reduction of the rear yard setback, replacement of parking elsewhere on the property, and approval of the Rezoning from R-l-AA (Single Family Residential) to CBD (Central Business District) based on consistency with the Downtown Delray Beach Master Plan and positive findings with respect to Future Land Use Element Policy A-1.7 of the Planning and Zoning Board St~.. ,<eport The Meridian - FLUM Amendment and Rezoning Page 8 Comprehensive Plan (FLUM Amendment Findings), LDR Section 3.1.1 (Required Findings), LDR Section 2.4.5(D)(5) (Rezoning Findings) and the Goals, Objectives, and Policies of the Comprehensive Plan Report prepared by: Scott Pape, Senior Planner Attachments: · Proposed Future Land Use Map · Zoning Map · Survey SEA GA TE MANOR EA CH CLUB o ~ ~.o..~ THE MERIDIAN ~ o~ ~o~ FROM: R-I-~ (SINGLE F~ILY RESIDe) ~ TO: CBD (CENT~L BUSINESS SKETCH OF SPE,.;I'FIC PURPOSE SURVEY A PORTION OF BLOCK 12.0 TOWN OF LINTON (NOW DELRAY BEACH) " "' (PB 1, PG 3, PBCR) -~ ~/-  ~.. ~. ~-~ s~[anc Pu~.os~ or TH~ su~v~r I ~ ~G~--~-WAY UNE OF NO.BOUND U~ ..... ~g N52', S122', W143", BLOCK 120 ~ ~ LESS THE WS' / S7O', W127', BLOCK ~20 0 (PB 1 PG 3, PBCR) , . ST ~ND D~CRI~ON: A POTION OF BLOCK 120, ~'N OF ~ON (NOW D~Y B~CH). ACCORDING ~ ~E P~T ~EOF RECORDED IN P~T BOOK 1. ~E 3 OF ~E PUBUC RECORDS OF P~M B~CH ~, ~RID~ MORE - P~TICU~RLY D~CRIBED ~ ~WS: FOR SO~ 70.00 ~ OF ~ ~ ~ DF ~ID BLOCK MIC~ D. ROSE ~D ~DS L~NG IN ~E ~ DF D~Y B~H, P~M PRO~IO~ SU~CR B~CH COUP. ~DRID~ CDN--~NING 1120 SO.RE ~, ~RI~ REGI~ON NO. 5995 MORE OR ~A. PRDJE~ NO: 01-0557~0~ SH~ 1 OF 1 SH~ R~ NAME: X:~C~XSU~DS~k,,SK~3H~16SU~ . IN~ORMA~O~ PUR~ ONLY ~g ~ N~ S.E. 2ND ST. - SEA~A TE S.E. 4~ ~ ST. I ~ ~ MANOR ,z : DELRAY ~ CLUB 0 ~ I .... -- FUTURE ~ND USE M~ AMENDM~- AR~ ¢ ~O0*~T~ON FROM: LD (LOW DENSI~ RESIDe) ow OF 0~A~ B~A~, ~ ~ TO: CC (COMMERCI~ CORE) S.F. 2ND ST. S.E. 3RD ST 4TH ST. WOMEN'S~-r'  SEA GA TE MANOR CiTY OF DELRAY BEACH, PLANNING ,~ ZONING DE:PAR~T -FLUM AND R~ZONING -. FLUM ASSOCIATED WITH THE MERIDIAN REZONING FROM' LD (LOW DENSITY RESIDENTIAL) FROM: R-I-AA (SINGLE FAMILY PJESlDENTIAL)J TO: CC (COMMERCIAL CORE) TO: CBD (CENTRAL BUSINESS DISTRICT) MEMORANDUM TO: FROM: SUBJECT: DATE: MAYOR AND CITY COMMISSIONERS CITY MANAGER ~' AGENDA ITEM # / ~ ~- REGULAR MEETING OF DE(~EMBER $, 2002 ORDINANCE NO, 52-02 (PRIVATELY INITIATED REZONING) NOVEMBER 27, 2002 This ordinance is before Commission for second reading and a quadjudidal heating, for rezoning from R-l-AA (Single Family Residential) to CBD (Central Business District) for property located on the north side of S.E. 4m Street, approximately 110' east of S.E. 6m Avenue (northbound Federal Highway). The subject property consists of the west 16' of Lot 28, Block 120 of the Town of Delray Subdivision and contains 0.025 acres. The remainder of Lot 28 has a single family residence built in 1934 with a zoning of R-l-AA and is located in the Marina Historic District. The western 16' contains a driveway and a canopy attached to the adjacent single family home to the east. The applicant proposes to incorporate this portion into the Meridian Mixed-Use Development located along the east side of S.E. 6~' Avenue, between S.E. 3~d and 4m Streets for parking and landscape areas. The Plarm/ng and ZonLqg Board held a public heating in conjunction with the request. After discussing this proposal, the Board voted 5-0 to recommend that the request be approved, based on consistency with the Downtown Delray Beach Master Plan and positive findings with respect to Future Land Use Element Policy A-1.7 of the Comprehensive Plan (FLUM Amendment Findings), Land Development Regulations (LDR) Section 3.1.1 (Required Findings), LDR Section 2.4.5 (13)(5) (Rezoning Findings), and the goals, objectives, and policies of the Comprehensive Plan; subject to the condition that a variance application is submitted and granted for the reduction of the rear yard setback and replacement of parking elsewhere on the property. At the first reading on October 1, 2002, the City Commission passed the Ordinance No. 52-02 unanimously. Recommend approval of Ordinance No. 52-02 on second and final reading. S:\City Clerk\chevelle folder\agenda memos\Ord. SZOZl2.03 02 Rezonmg TO: THRU: FROM: SUBJECT: SCOTT D. PAPE, SENIOR PLANNER''/~/~'/"~ MEETING OF OCTOBER 1, 2002 PRIVATELY INITIATED REZONING FROM R-l-AA (SINGLE FAMILY RESIDENTIAL) TO CBD (CENTRAL BUSINESS DISTRICT) FOR PROPERTY LOCATED ON THE NORTH SIDE OF SE 4TM STREET~ APPROXIMATELY 110' EAST OF SE 6TM AVENUE (NORTHBOUND FEDERAL HIGHWAY). The property consists of the west 16' of Lot 28, Block 120 of the Town of Delray subdivision and contains 0.025 acres. The remainder of Lot 28 contains a historically contributing single family residence (built 1934), which is zoned R-l-AA and located in the Marina Historic District The western 16' contains a driveway and canopy that is attached to the adjacent single family home to the east. The applicant proposes to incorporate the western 16' of the subject property into the previously approved mixed use development known as The Meridian located along the east side of SE 6th Avenue (northbound Federal Highway), between SE 3~d and 4th Streets, for parking and landscape areas. This rezoning is being processed concurrently with a Future Land Use Map amendment from LD (Low Density Residential 0-5 units per acre) to CC (Commercial Core), which is part of the City's Comprehensive Plan Amendment 2002-02. The Comprehensive Plan Amendment Transmittal Hearing is also scheduled for the October Ist City Commission meeting. Second reading of the rezoning ordinance will occur in conjunction with adoption of the Comprehensive Plan Amendment anticipated in December. It is noted that the conveyance of the 16'-wide parcel will create a nonconformity with respect to the rear setback of the house. A condition of the Rezoning and FLUM amendment is that a variance application is submitted and approval granted (by the Historic Preservation Board) to reduce the rear setback and that the parking associated with the residence is relocated elsewhere on the property. Additional background and an analysis of the FLUM amendment and rezoning are provided in the attached Planning and Zoning Board staff report. At its meeting of September 23, 2002, the Planning and Zoning Board held a public hearing in conjunction with the Rezoning and FLUM amendment requests. After reviewing the staff report and discussing the proposal, the Board unanimously voted 5-0 (Krall and Pike absent) to recommend that the requests be approved, based on consistency with the Downtown Delray Beach Master Plan and positive findings with respect to Future Land Use Element Policy A-1.7 of the Comprehensive Plan (FLUM Amendment Findings), LDR Section 3.1.1 (Required Findings), LDR Section 2.4.5(D)(5) (Rezoning Findings) and the Goals, Objectives, and Policies of the Comprehensive Plan, subject to the condition that a variance application is submitted and granted for the reduction of the rear yard setback and replacement of parking elsewhere on the property. By motion, approve on first reading the ordinance for the proposed Rezoning from R-l-AA (Single Family Residential) to CBD (Central Business District) based on the findings and recommendations by the Planning and Zoning Board. /~_~ Attachments: P & Z Staff Report of September 23, 2002 & Ordinance by Others ORDINANCE NO. 52-02 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, REZONING LAND PRESENTLY ZONED R-l-AA (SINGLE FAMILY RESIDENTIAL) DISTRICT TO CBD (CENTRAL BUSINESS) DISTRICT; SAID LAND BEING A PARCFJ. LOCATED ON THE NORTH SIDE OF SE 4TH STREET, APPROXIMATELY 127 FEET EAST OF SE 6TH AVENUE (NORTHBOUND FEDERAL HIGHWAY), AS MORE PARTICULARLY DESCRIBED HEREIN; AMENDING "ZONING MAP OF DFJJKAY BEACH, FLORIDA, 2002"; PROVIDING A GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the property hereinafter described is shown on the Zoning District Map of the City of Delray Beach, Florida, dated February, 2002, as being zoned R-I-AA (Single Family Residential) District; and WHEREAS, at its meeting of September 23, 2002, the Planning and Zoning Board for the City of Delray Beach, as Local Planning Agency, considered this item at a public hearing and voted 5 to 0 to recommend that the property hereinafter described be rezoned, based upon positive findings; and WHERF. AS, it is appropriate that the Zoning District Map of the City of Delray Beach, Florida, be amended to reflect the revised zoning classification. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DF.I.RAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the Zoning District Map of the City of Delray Beach, Florida, be, and the same is hereby amended to reflect a zoning classification of CBD (Central Business District) District for the following described property: A portion of Block 120, Town of Linton (now Delray Beach), according to the Plat thereof recorded in Plat Book 1, Page 3 of the Public Records of Palm Beach County, Florida, more particularly described as follows: The East 16.00 feet of the West 143.00 feet of the South 70.00 feet of the South half of said Block 120. Section 2. That the Planning and Zoning Director of the said City shall, upon the effective date of this ordinance, amend the Zoning Map of the City of Dekay Beach, Florida, to conform with the provisions of Section 1 hereofi Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 4. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 5. That this ordinance shall become effective immediately upon passage on second and final reading. PASSED AND ADOPTED in regular session on second and final reading on this the day of ~ 2002. ATTEST MAYOR City Clerk First Reading Second Reading 2 ORD NO. 52-02 PLANNING AND ZONING BOARD CITY OF DELRAY BEACH ---STAFF REPORT--- MEETING DATE: AGENDA ITEM: ITEM: September 23, 2002 IV. E.' Future Land Use Amendment From LD (Low Density Residential 0-5 du/ac) To CC (Commercial Core) and Rezoning From R-l-AA (Single Family Residential) To CBD (Central Business District) For a Parcel of Land Associated With the Meridian Mixed-Use Development. GENERAL DATA: Owner/Applicant .......................... Mallory II, LLC Agent .......................................... Ironwood Properties, Inc. Location ...................................... North Side of SE 4th Street, Approximately 127 Feet East of SE 6th Avenue (Northbound Federal Highway) Property Size .............................. 0.025 Acres Future Land Use Map ................ LD (Low Density Residential 0-5 Du/Acre) Proposed FLUM ........................ CC (Commercial Core) Current Zoning ............................ R-l-AA (Single Family Residential) Proposed Zoning ........................ CBD (Central Business District) Adjacent Zoning ................ North: CBD (Central Business District) East: R-l-AA (Single Family Residential) South: GC (General Commercial) & R-l-AA (Single Family Residential) West: CBD (Central Business District) Existing Land Use ...................... Single Family Residence Proposed Land Use .................... Parking associated with the construction of mixed use development that consists of 22 townhouses and 23,228 square feet of office space. Water Service ............................. Existing on site. Sewer Service ............................. Existing on site. ATLANTIC AVENU £ 2ND nDELITY FED£RAL ST IV.E. The action before the Board is that of making a recommendation to the City Commission on a privately sponsored Future Land Use Map (FLUM) Amendment from LD (Low Density Residential/0-5 dwelling units per acre) to CC (Commercial Core) and rezoning from R-l-AA (Single Family Residential - Medium Density) to CBD (Central Business District) for property located on the north side of SE 4th Street, approximately 110' east of SE 6th Avenue (Federal Highway). Pursuant to Section 2.2.2(E) of the Land Development Regulations, the Planning and Zoning Board shall review and make a recommendation to the City Commission with respect to FLUM and Rezoning Amendments for any property within the City. The property is the west 16' of Lot 28, Block 120 of the Town of Delray subdivision and contains 0.025 acres. The remainder of Lot 28 contains a single family residence and is zoned R-l-AA. The western 16', which is the subject of the FLUM and Rezoning applications, is not located in the Marina Historic District. This portion of the property contains a driveway and canopy that is attached to the adjacent single family home to the east. The house on the balance of the property was built in 1934 and is located in the Marina Historic District overlay and is considered a contributing structure. At its meeting of December 5, 2000, the City Commission approved a FLUM and Zoning Map change to the western portion of Block 120 of the Town of Delray subdivision. These actions change the FLUM designation from GC (General Commercial) to CC (Commercial Core) and the zoning designation from GC (General Commercial) to CBD (Central Business District). At its meeting of August 28, 2002 the Site Plan Review and Appearance Board approved a site plan for a mixed use development consisting of 22 townhouses and 20 offices known as The Meridian. The applicant proposes to incorporate the western 16' of the subject property into this development to be used for parking and landscape area. This Future Land Use Map Amendment is being processed pursuant to the twice a year statutory limits for consideration of plan amendments (F.S. 163.3187) as part of Comprehensive Plan Amendment 2002-02. LDR (Chapter 3) PERFORMANCE STANDARDS: Pursuant to Section 3.1.1 (Required Findings), prior to approval of Land Use applications, certain findings must be made in a form which is part of the official record. This may be achieved through information on the application, written materials submitted by the applicant, the staff report, or minutes. Findings shall be made by the body which has the authority to approve or deny the development application. These findings relate to the Future Land Use Map, Concurrency, Planning and Zoning Board Sta .... eport The Meridian - FLUM Amendment and Rezoning Page 2 Comprehensive Plan Consistency, and Compliance with the Land Development Regulations. Future Land Use Map: The resulting use of land or structures must be allowed in the zoning district within which the land is situated and said zoning must be consistent with the applicable land use designation as shown on the Future Land Use Map. The proposed parking and landscape area is allowed as an accessory use to the approved mixed use development known as The Meridian in the CBD (Centra, I Business District) zoning district. The CBD zoning district is consistent with the proposed Commercial Core Future Land Use Map designation. The remaining required findings of LDR Section 3.1.1, Concurrency, Comprehensive Plan Consistency and Compliance with the Land Development Regulations are discussed below. Future Land Use Element Policy A-1.7: Amendments to the Future Land Use Map (FLUM) must be based upon the findings listed below, and must be supported by data and analysis that demonstrate compliance with these findings: Demonstrated Need -- That there is a need for the requested land use. The need must be based upon circumstances such as shifts in demographic trends, changes in the availability of land, changes in the existing character and FLUM designations of the surrounding area, fulfillment of a comprehensive plan objective or policy, annexation into the municipal boundaries, or similar circumstances. The need must be supported by data and analysis verifying the changing demographics or other circumstances. This requirement shall not apply to requests for the FLUM designations of Conservation or Recreation and Open Space; nor shall it apply to FLUM changes associated with annexations when the City's advisory FLUM designation is being applied, or when the requested designation is of a similar intensity to the advisory designation. However, the findings described in the remainder of this policy must be addressed with all FLUM amendments. As noted in the Background section of this report, the FLUM designations of the properties to the west were recently changed to Commercial Core and rezoned to CBD. These actions were taken in order to extend the downtown area as it was deemed more appropriate than the existing uses, which were primarily automotive related. The mixed use project known as The Meridian was approved to the west of the subject property. The eastern boundary of this project is generally uniform except for the subject 16' at the southern end. It has been the developer's intention to incorporate this 16'-wide parcel for additional parking. This action will provide a uniform boundary along the east side of The Meridian development. The proposed FLUM amendment will fulfill Future Land Use Element Policy C-4.2, stated as follows: Planning and Zoning Board Sta,, .<aport The Meridian - FLUM Amendment and Rezoning Page 3 Future Land Use Element Po#cy C-4.2: A special CBD plan shall be developed jointly by the CRA and the City. It shall address the maximum development which can be accommodated in a competitive market while still retaining the "village like, community by-the-sea" character of the CBD. it shall further identify the infrastructure requirements, including parking, which will be needed to accommodate such an intensity of development. Such a plan shall be formally processed as an amendment to the Comprehensive Plan. The plan shall be instituted under the lead of the Community Redevelopment Agency but conducted through close participation with the City's Planning and Zoning Department. The CBD plan has been adopted and is now known as the Downtown Delray Beach Master Plan (~idopted March 19, 2002). The Master Plan indicates that "Increasing residential density is absolutely crucial to ensure a healthy and lasting life to the District that will contribute to the vitality of the area." The Master Plan also encourages the establishment of shared parking in the downtown core area. The Meridian development participated in the City's shared parking program. However, despite the shared parking provisions the development is required to contribute six parking spaces ($72,000) towards the City's in-lieu program. Inclusion of the subject property will allow the developer to include additional parking spaces on-site rather than full contribution to the in-lieu program. Therefore, it is appropriate that the proposed FLUM and Zoning Map designations be applied to the property as they are consistent with the Master Plan with respect to parking needs in the downtown area. Since this Comprehensive Plan policy is furthered by the proposed FLUM amendment, a positive finding can be made with respect to fulfilling a demonstrated need. Consistency -- The requested designation is consistent with the goals, objectives and policies of the most recently adopted Comprehensive Plan. The proposal is consistent with the policy mentioned above as well as other goals, objectives and policies of the City's Comprehensive Plan. The FLUM amendment will also address the following Comprehensive Plan Policy: Future Land Use Element Policy A-1.2- Zoning changes which would result in strip commercial development shall be avoided. Where strip commercial developments or zoning currently exists along an arterial street, consideration should be given to increasing the depth of the commercial zoning in order to provide for better project design. It is recognized that the proposed FLUM and Rezoning will not significantly increase the depth of The Meridian property. However, it will be sufficient to increase the amount of on-site parking and reduce the amount of spaces that will be contributed via the in-lieu fee program. Concurrency -- Development at the highest intensity possible under the requested designation can meet the adopted concurrency standards. Planning and Zoning Board Sta,.. <eport The Meridian - FLUM Amendment and Rezoning Page 4 The proposal involves the FLUM amendment on a 0.025 acre parcel from LD to CC and a rezoning from R-l-AA to CBD. With the current FLUM and Zoning Map designations, the property could not be redeveloped, as it does not meet the minimum lot size, lot width, lot depth, and lot frontage in the R-l-AA zoning district. Given the size of the subject property, redevelopment to a use other than the proposed accessory parking area is unlikely. [] Compatibility -- The requested designation will be compatible with the existing and future land uses of the surrounding area. Based on the finding by the Planning and Zoning Board and City Commission for the FLUM and Rezoning for the balance of The Meridian property, the designation change for the subject property would be compatible with the adjacent single family neighborhood to the east. The existing surrounding land uses are vacant to the north, single family residential to the south and east, and mixed use office and residential (The Meridian) to the west. The FLUM designations of the surrounding uses are CC (Commercial Core) to the north and west, LD (Low Density Residential 0-5 dwelling units per acre) to the east, and GC (General Commercial) to the south. The proposed designation change will "square-off" the district boundaries, which are Commercial Core along the west side of Block 120 and residential along the east side. Based on the above, a positive finding with respect to compatibility can be made. Compliance -- Development under the requested designation will comply with the provisions and requirements of the Land Development Regulations. Future redevelopment of the 0.025 acre parcel of land will occur in accordance with the City's Land Development Regulations during the site plan review process. Future redevelopment will be directed by the Master Plan, which will comply with the City's Land Development Regulations. It is noted that the conveyance of the 16'- wide parcel will create a nonconformity with respect to the rear setback of the single family residence to the east. The required setback in the R-l-AA zoning district is 10' from the property line. When the property is conveyed to The Meridian, the rear setback would be approximately 5'. In order to compensate for this nonconformity, the property owner of the single family residence must apply and be granted a variance from the Historical Preservation Board. Since the conveyance of the property will eliminate the driveway and carport of the single family residence, an alternative parking design must be provided. A condition of the FLUM amendment is that a variance must be submitted and granted for the rear yard setback and that alternative parking be provided. Given the above, a positive finding with respect to compliance with the Land Development Regulations can be made. Section 3.2.2 (Standards for Rezoninq Actions): Standards B and E are not applicable. The applicable performance standards of Section 3.2.2 are as follows: Planning and Zoning Board Sta,. ?,eport The Meridian - FLUM Amendment and Rezoning Page 5 (A) The most restrictive residential zoning district that is applicable given existing development patterns and typical lot sizes shall be applied to those areas identified as "stable" and "stabilization" on the Residential Neighborhood Categorization Map. Requests for rezonings to a different zoning designation, other than Community Facilities, Open Space, Open Space and Recreation, or Conservation shall be denied. The property is located within the area identified as stable on the Residential Neighborhood Categorization Map. The development pattern along SE 6th Avenue (northbound Federal Highway) is such that the western halves of the blocks on the east side of the road have been developed as commercial. The subject property is the only instance where the residential zoning has encroached onto the western half of the block. The CBD zoning district is the established zoning classification along the western half of these blocks. Therefore, residential zoning for this parcel is not appropriate. Therefore, this policy should not be applicable given the existing development pattern. (c) Zoning changes that would result in strip commercial development shall be avoided. Where strip commercial zoning developments or zoning currently exists along an arterial street, consideration should be given to increasing the depth of the commercial zoning in order to provide for better project design. The proposed rezoning would designate the 0.025 piece of land as CBD and thereby slightly increasing the depth of The Meridian property along SE 6th Avenue (Federal Highway) which is also zoned CBD. The proposed rezoning will allow The Meddian mixed use development to construct additional parking spaces thereby reducing the need for in-lieu parking spaces making for a better office and residential development. (D) That the rezoning shall result in allowing land uses which are deemed compatible with adjacent and nearby land use both existing and proposed; or that if an incompatibility may occur, that sufficient regulations exist to properly mitigate adverse impacts from the new use. The following zoning designations and uses border the property: Direction Zoninq Uses North CBD West CBD South GC East R-I-A Atlantic Center Shoppes Mallory Square townhouses Single family residences Single family residences The proposed rezoning is compatible with the adjacent land uses and consistent with the development pattern along Federal Highway. As noted, in the background section of this report, the Planning and Zoning Board and City Commission made a finding that the CBD zoning district is compatible with the Planning and Zoning Board Sra.. ,<eport The Meridian - FLUM Amendment and Rezoning Page 6 surrounding properties when the properties to the north and west were rezoned on December 5, 2000. Section 2.4.5{D){5) {Rezonin_q Findings): Pursuant to Section 2.4.5(D)(5) (Findings), in addition to provisions of Chapter Three, the City Commission must make a finding that the rezoning fulfills one of the reasons for which the rezoning change is being sought. These reasons include the following: That the zoning had previously been changed, or was originally established, in error; That there has been a change in circumstances which make the current zoning inappropriate; C= That the requested zoning is of similar intensity as allowed under the Future Land Use Map and that it is more appropriate for the property based upon circumstances particular to the site and/or neighborhood. As noted previously, development pattern along SE 6th Avenue has been established such that the western half of the blocks have developed as commercial where the eastern half has been developed as residential. The proposed rezoning to CBD is the correct zoning designation for the proposed Commercial Core FLUM designation. The proposed rezoning will "square-off" the zoning boundaries consistent with the remainder of the block. Therefore, a finding can be made the rezoning fulfills subsections "b" and The property is not in an area that requires review by the DDA (Downtown Development Authority). Community Redevelopment Agency (CRA): The CRA reviewed the FLUM amendment and Zoning Map change at its meeting of September 12, 2002 and recommended approval. Public Notice: Formal public notice has been provided to property owners within a 500' radius of the subject property. Letters of support or objection, if any, will be presented at the Planning and Zoning Board meeting. Courtesy Notices: Special courtesy notices were provided to the following homeowners and civic associations: Planning and Zoning Board Sta,. ,<eport The Meridian - FLUM Amendment and Rezoning Page 7 · Beach Property Owners · Via Marina · PROD · Presidents Council The proposed amendments will provide a consistent boundary between the west (commercial) half of the block and the east (residential) half. It is noted that the conveyance of the 16'-wide parcel will create a nonconformity with respect to the rear setback of the house. A condition of the. FLUM amendment is that a variance application is submitted and a variance is granted for the rear setback by the Historic Preservation Board and that the parking is relocated elsewhere on the property. Furthermore, the proposed designation changes are consistent with the Downtown Delray Beach Master Plan. Positive findings can be made with respect to Future Land Use Element Policy A-1.7 of the Comprehensive Plan (FLUM Amendment Findings), LDR Section 3.1.1 (Required Findings), and the Goals, Objectives, and Policies of the Comprehensive Plan. Positive findings can be made with respect to LDR Section 2.4.5(D)(5) (Rezoning Findings). Therefore, the proposed FLUM amendment and Rezoning can be recommended for approval based on the findings outlined in this report. A. Continue with direction. Recommend to the City Commission approval of the FLUM Amendment and Rezoning for the subject property, based on consistency with the Downtown Delray Beach Master Plan and positive findings with respect to Future Land Use Element Policy A-1.7 of the Comprehensive Plan (FLUM Amendment Findings), LDR Section 2.4.5.(D)(5) (Rezoning Findings), LDR Section 3.1.1 (Required Findings), and the Goals, Objectives, and Policies of the Comprehensive Plan; or Co Recommend denial of the FLUM Amendment and Rezoning based on a failure to make positive findings with Future Land Use Element Policy A-1.7 of the Comprehensive Plan (FLUM Amendment Findings), LDR Section 2.4.5(D)(5) (Rezoning Findings) and Section 3.1.1 (Required Findings) of the Land Development Regulations, with the basis stated. Recommend to the City Commission approval of the proposed FLUM Amendment from LD (Low Density Residential 0-5 dwelling units per acre) to CC (Commercial Core), subject to the condition that a variance application is submitted and granted for the reduction of the rear yard setback, replacement of parking elsewhere on the property, and approval of the Rezoning from R-l-AA (Single Family Residential) to CBD (Central Business District) based on consistency with the Downtown Delray Beach Master Plan and positive findings with respect to Future Land Use Element Policy A-1.7 of the Planning and Zoning Board St~.. ,;~eport The Meridian - FLUM Amendment and Rezoning Page 8 Comprehensive Plan (FLUM Amendment Findings), LDR Section 3.1.1 (Required Findings), LDR Section 2.4.5(D)(5) (Rezoning Findings) and the Goals, Objectives, and Policies of the Comprehensive Plan Report prepared by: Scott Pape, Senior Planner Attachments: · Proposed Future Land Use Map · Zoning Map · Survey/ s.~-. I _ .~ II I ~SEA GA TE S.E. I ¢ 4TH x ~l I ~ B MANOR - AREA OF PROPER~ N ~ THE MERIDIAN ~ -- REZONING-- AREA OF MODIFICATION FROM: Rd-~ (SINGLE FAMILY RESIDENTIAL) CI~ OF DE~AY BEACH, ~ TO: CBD (CENT~L BUSINESS DISTRICT) PL~NING ~ ZONING DEPAR~ENT --- ~I~Z ~ ~ ~ ---- ~ R~F' ~ 640 :SKETCH OF SPECIFIC PURPOSE SURVEY A PORTION OF BLOCK i?_.0 TOWN OF LINTON (NOW DELRAY BEACH) "" SCALE: '1"=30' "" (PB 1, PG 3, PBCR)  ~,. 1. mE SPECIFIC PURPOSE OF mis SURVEY IS TO SHOW I ~ R~gHT--DF--WAY UNE OF NORTHBOUND U.S. ~ '~ ".J o -- ~-~, OWNERSHIP DR OTHER INSTRUI,4EN'TS DF ~ I-- I u N52', $122', W143'. BLOCK 120 'T' gm LESS THE W5' / ~ m "" SBB' 4-6 '-~. I ".00' . 570', W127', BLOCK 120 -~" L~ ,,, 30.00' t ~_F'SS ORB 430, PG 418 (R/W) ~,~ 0 _.j L~ ~ -- -- __ J ~' I ' " "' SOUTU U~ ,Z o~. t %~_~"=~ ~.00' I" Z'.E.. 4TH LAND DESCRIPTION: (" A PORTION OF BLOCK 120, ~-G'~'N DF' UNTON (NOW / D.--1 RAY BEACH), ACCORDING TC 'THE PLAT THEREOF RECORDED IN PLAT BOOK 1, ,:=A2E 3 OF THE PUBLIC RECORDS OF PALM BEACH COUP-Pt', FI.DRIDA. MORE PARTICULARLY DESCRIBED A.~ F"~'?LLDWS: FOR TH-- ~R~,o BY: SOUTH 70.00 FEET OF THE S"J~'T;H HALF DF SAID BLOCK ' ~' / 120. MICt-I~-.EJ- D. ROSE .?~JD LANDS LYING IN THE CiTY OF D-:D_RAY B-2ACH, PALM PRO~IONAL SUFT,./EYCR AND MAPPER BEACH COUNTY. FLORIDA, CON--~NING 1120 SQUARE FEET, FLDRIL3A REGIS"fP. ATION NO. 3995 MORE OR LESS. PROJECT NO: Dt-0557.~0:~ ~H~----'T 1 OF 1 SH-~----'T UN~ IT BEARS THE_ SIGNATURE AND THE ORIGINN. RAISED SE. AL DF A FLOR!:3A .UCENS-:~D SURV~-YDE AND bI^PFE-'R TRHI$ MAP IS FOE F']~=' NAME: X:\~-,AD~,$UR\_rEY~D55-7~.SKET3H-~lESUF;N INF'ORblA~O'N~d- PUR~'OS~ ONLY AND IS NOT VA~JD C-"'RTlYlCATE OF' AUTHORIZATION NO. LB 6456 SPECIr"I= PURPOSE SURV~ I I,ED, R !l:~t, I MDR 1B35 s Perimeter Road · Suite 19D. Ft. Lauaeraaic, R'-"~,SIDNS ~ ]:~N I DA'J'~_ I F"B/P~! ~HKD PI-t: .~54-776-76o,~ - FAX: ~5~1-77~-760a £1T¥ OF DELRflV BEflI:H CiTY ATTORNEY'S OFFICE 200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444 TELEPHONE 561/243-?090 · FACSIMILE 561/278-4755 Wnter's D~rect L~ne 561/243-7091 1993 DATE: MEMORANDUM November 20, 2002 TO: FROM: City Commission Brian Shutt, Assistant City Attorney SUBJECT: In-Lieu Parkinq Fee Ordinance Ordinance No 4-99 was enacted by the Commission on February 2, 1999. This ordinance provided for certain fees and payment plans regarding in-lieu parking spaces. This ordinance also contained a sunset provision. The sunset provision was included as it was felt that this ordinance should be reevaluated at a future time to determine if the in-lieu fee option would still be needed as a redevelopment incentive. Although redevelopment has occurred, City staff still feels that the in- lieu fee option is still needed. Ordinance No. 53-02 is exactly the same as Ordinance No. 4-99, but, does not include a sunset provision. By copy of this memo to David Harden, our office is requesting that this item be placed on the December 3, 2002 City Commission agenda. Please call if you have any questions. Attachment CC; David Harden, City Manager Barbara Garito, City Clerk Paul Dorling, Director of Planning & Zoning ORDINANCE NO. 53-02 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING SECTION 4.6.9, "OFF-STREET PARKING REGULATIONS", SUBSECTION 4.6.9(E), "LOCATION OF PARKING SPACES", OF THE LAND DEVELOPMENT REGULATIONS OF THE CITY OF DELRAY BEACH, TO PROVIDE FOR REVISED IN LIEU OF PARKING REGULATIONS; PROVIDING A GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the City Commission has determined that in lieu of fees serve the public interest by contributing toward relieving the parking problem in the City's CBD, CBD-RC, OSSHAD and GC (West Atlantic Avenue Overlay) zoning districts; WHEREAS, the City Commission has determined that the amount of in lieu of fees paid for a particular property should be based upon the location of the property for which in lieu of fees are sought; and WHEREAS, the City Commission has determined that funds from the in lieu of fees shall be used for parking purposes. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Chapter Four, "Zoning Regulations", Article 4.6, "Supplemental District Regulations", Section 4.6.9, "Off-Street Parking Regulations", Subsection 4.6.9(E), "Location of Parking Spaces", of the Land Development Regulations of the City of Delray Beach, Florida, be, and the same is hereby amended to read as follows: (E) Location of Parking Spaces: (1) Street parking, parking located in the public right-of-way, or parking located in public parking facilities shall not be used to satisfy on-site parking requirements. The terms "on-site parking" and "off-street parking" are synonymous. However, pursuant to the requirements of Section 4.6.9(E)(3)(e), the cost of construction of additional on-street public parking may be used to offset the total dollar amount due under an ~n-lieu fee aqreement with the City. (2) Required off-street parking shall be provided on the same lot or parcel as the building and uses for which it is required, except as provided for within this Subsection (E). 1 ORD. NO 53-02 (3) In-Lieu Fee: If it is impossible or inappropriate to provide the required number of on-site or off-site .parking spaces, the City Commission may approve the payment of a fee in lieu of providing such required parking, pursuant to the following provisions: (a) The in-lieu fee is authorized only in the CBD, CBD-RC, OSSHAD and GC (West Atlantic Avenue Overlay District) zoning districts in compliance with the supplemental district regulations provisions therein. (b) -rh~_. ,~,~,,. io h,~,-,~h .... t.hlioh~,,..I ~ ¢~ nnn ........ Arrangements for payment shall be approved by the City Commission at the time of the approval of the in-lieu fee. The fee amount shall be based upon the location of the property for which in-lieu fees are beinq sought. Area descriptions and corresponding fee amounts are hereby established as follows: (1) Area 1: Parcels located east of the Intracoastal Waterway which are zoned CBD - $14,000 per space. (2) Area 2: Parcels located west of the Intracoastal Waterway which are zoned CBD or CBD-RC and which are not included within the Pineapple Grove Main Street area - $12,000 per space. (3) Area 3: Parcels located within the OSSHAD zoninq district and parcels located within the Pineapple Grove Main Street area which are zoned CBD or CBD-RC - $6,000 per space. (4) Parcels located within the West Atlantic Avenue Overlay District which are zoned GC - $4,000 per space. (c) All proceeds from such a fee shall be used for parking purposes. (d) For those parcels located in Area 1 or Area 2, the in-lieu fee shall be paid in full at the time of submission of a buildinq permit application. For those parcels located in Area 3 or Area 4, the in-lieu fee may be paid in full at the time of submission of a buildinq permit application or in installments. Applicants for an in-lieu fee which is not paid in full at time of permit, must enter into an In-Lieu of Parkinq Fee Agreement 2 ORD. NO 53-02 with the City. Such agreement shall be recorded with the Public Records Office of Palm Beach County, Florida. The obligations imposed by such an In-Lieu of Parkinq Fee Aqreement constitute a restrictive covenant upon a property, and shall bind successors, heirs and assiqns. The restrictive covenant shall be released upon full payment of the in-lieu parking fees including attorneys' fees and costs. In-Lieu of Parkinq Fee Agreements shall only be made between the City and the Owner(s) of the subject property. If an In-Lieu of Parking Fee Aqreement is entered into, installment payments shall be made over a three-year time period in three installments. The first installment shall be 50% of the total fee and is to be paid upon signing the agreement. The second installment shall be 25% of the total fee and is due on the second anniversary date of the siqnin.q of the a,qreement. The third and final payment of 25% of the total fee is due on the third anniversary date of the signing of the aqreement. There shall be no interest due under this payment schedule. ~ t'~,"~x: hn n,~irl ,,'JJe nr~n 4-imex r~r in in*t',~llmnnt'e In~',~llmnnt' ~N~:tme~n4't1 he, m,',,-I ...... 8 ni .......... i,-,,-I in *SR ....... $o Thc ~::'** nm,m,-,-* [~ I I .~ VlVl , .,1 .~ ]~, ~l I~ Il , . I ~[~, I l~l I[~. ,11 VI ~[~, ''~l '[ ...... i,.l ~,e, ,~ ......... i,-,ni.,,~ ,~,~, ;,.o*,.llm,~n+ a~,"99,,meBt The · a .... ,:~ ~l,... ,,,~. ,,,,...,.. \~! y...,al~. .-....~l,,l .... ~ In i,.,,a, v, :,,.., ..... ~ ............... p~[ (e) In addition to in-lieu fees due, where adequate right-of-way exists adjacent to a proposed project for which an in-lieu parking fee has been approved, the applicant must construct additional on-street parking, not to exceed the total amount of spaces subiect to in-lieu fees unless authorized by the City Commission. The total in-lieu fee due shall be reduced by an amount equal to the actual construction costs, but in no event to exceed total in-lieu fees for these on-street spaces includinq street lighting. Additional credit, not to exceed 10% of the total fee, may be taken for the actual construction costs of approved streetscape beautification elements in the public right-of-way. Beautification improvements may include: but are not limited to, paverbrick walkways, street furniture and landscaping. Credit may not be taken for those streetscape elements listed in Section 4.4.13 (I) (2) (f) which are required to meet the performance standards for new developments in the CBD which exceed 30 dwellin.q units per acre. Neither credit for construction of on-street spaces, nor 3 ORD. NO 53-02 credit for construction of beautification elements shall be reimbursed until such construction has been fully completed. Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 3. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 4. That this ordinance shall become effective immediately upon its passage on second and final reading. Section 5. That this ordinance shall apply to all in-lieu parking fee agreements entered into prior to the effective date of this ordinance and all in-lieu fees owing to the City under those agreements shall be paid as set forth in this ordinance and in the in-lieu parking fee agreements. PASSED AND ADOPTED in regular session on second and final reading on this the day of MAYOR ATTEST: City Clerk First Reading Second Reading 4 ORD. NO 53-02 [ITY OF DELRI:I¥ BErI£H CITY ATTORNEY'S OFFICE 200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444 TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755 Writer's Direct L~ne 561/243-7091 1993 DATE: MEMORANDUM November20,2002 TO: FROM: City CommiS~..~,~ Brian Shutt, Assistant City Attorney SUBJECT: Ordinance No. 54-02 Revisinq Ordinance No. 51-02 After the adoption of Ordinance No. 51-02 a question was raised regarding whether or not Lot 3 of Block 2 and Lot 3 of Block 3 of the Silver Terrace Subdivision was included in Ordinance No. 51-02 as the changes made by Ordinance No. 51-02 referred to "Lots 2-4". In order to clarify that Lot 3 of Block 2 and Lot 3 of Block 3 are also included in Ordinance No. 51-02 this Ordinance is proposed to clarify that issue by changing "Lots 2-4" to "Lots 2, 3 and 4". By copy of this memo to David Harden, our office requests that this item be placed on the December 3, 2002 City Commission agenda. Please call if you have any questions. Attachment CC: David Harden, City Manager Barbara Garito, City Clerk Paul Dorling, Planning & Zoning Director ORDINANCE NO. 54-02 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING ORDINANCE NO. 51-02 BY AMENDING SECTION 1 CLARIFYING THAT THE LOTS REFERRED TO IN PARAGRAPH 5(a) INCLUDE LOT 3; PROVIDING A GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, Ordinance No. 51-02 was passed and adopted in regular session on second and final reading on October 15, 2002; and WHEREAS, this Ordinance clarifies Ordinance No. 51-02 to provide that Lot 3 of Blocks 2 and 3 of the Silver Terrace Subdivision are also included in Ordinance No. 51-02. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Section 1 of Ordinance No. 51-02 amending Section 3, Paragraph (5) of Ordinance No. 39-96, be, and the same is hereby amended to read as follows: (5) Residential development shall be pursuant to the density limitations and development standards of the RM (Medium Density Residential) zoning district, except as modified below: (a) Except for single family detached dwellings on Lots 2 [, 3 and 4; of Blocks 2 and 3, residential structures shall take access from the local streets in the subdivision. No new driveway connections to Dixie Highway are permitted. The driveways on Lots 2 ~ ,3 and 47 of Blocks 2 and 37 must be designed to enable vehicles to enter and exit the site in a forward manner. (b) Multiple family residential structures shall be in the form of townhouses on platted fee-simple lots or a residential condominium. (c) Multiple family developments shall have a minimum development area of one (1) acre. (d) Tandem parking may be counted toward minimum parking requirements for townhouse units with garages. (e) Rear setbacks, and setbacks along the perimeter of the SAD, shall be 15 feet. Section 2. That all ordinances or parts of ordinances in express conflict herewith be, and the same are hereby repealed, provided, however, all other terms and provisions of Ordinance No. 51- 02 shall remain in full force and effect. Section 3. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 4. That this ordinance shall become effective immediately upon passage on second and final reading. PASSED AND ADOPTED in regular session on second and final reading on this the __ day of ,200__. ATTEST M A Y O R City Clerk First Reading Second Reading. 2 ORD NO. 28-02 [lTV OF DELRI:IV BEACH CITY IITORNEY'S OFFICE ~oo ~w ~ ^ws~.. ~^~ ~^~., ~o~^ ~.~ TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755 1993 DATE: TO: FROM: SUBJECT: MEMORANDUM November 20, 2002 David T. Harden, City Manager Terrill Pyburn, Assistant City Attorney Proposed Ordinance on Handbills Wdter's Direct Line: 561/243-7090 Please find attached hereto a proposed updated ordinance regarding handbills. Please review the attached proposed ordinance and let me know if you would like for me to place it on the next City Commission agenda. Thank you. Also, please do not hesitate to contact me if you have any questions. TCP:smk Attachment (B) Exemptions, The provisions of this section shall not apply to tho distribution of mail by tho United States/ nor to newspapers except that newspapers shall be placed on prive~o deposited by the elements upon any street, lidewalk or other publio place or upon private property. ('80 Cod%, Sec. 12-51)(Ord. No. 34-83, passed Penalty,.see Sec. 111.99 Section .DEPOSITING.HANDBILLS ON UNINHABITED .OR VACANT NO person' shall throw or ~eposit any commercial or noncommercial handbill in or upon any uninhabited or vacan~ property. ('80 Code, Sec. 12-49) (Ord. No. 34-83, palled 5/20/83) Penalty, see Sec. 111.99 ' §ec=ton !11..18 DISTRIBUTING COMMERCIAL HANDBILLS IN PUBLIC PLACES. AND No person shall throw or ~eposit any commercial or noncommercial handbill in or upon any sidewalk, street, shopping center parking lot or other public place within the City, nor shall any person hand out or distribute or sell any commercial handbill in any public place, without first securing a permit from the Building Department-Occupational License Department. However, it shall be lawful on any sidewalk, street or other public place within ~he City for any person to hand out or distribute, without charge to the receiver thereof, any commercial or noncommercial handbill to any person willing to accept i~. Local businesses licenses under the provisions of Chapter 110 are exempt from this section. ('80 Code, Sec. 12-47) (Ora. No. 34-83, passed 5/20/83) Penalty, see Sec. 111.99 Zree publications, see Sections 111.30 through 111.32 XI.38 OP. mNANCE NO. 5e> -0Z AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING TITLE XI, "BUSINESS REGULATIONS", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH BY AMENDING CHAPTER 111, "ADVERTISING", BY REPEALING SECTION 111.18, "DISTRIBUTING COMMERCIAL AND NON-COMMERCIAL HANDBILLS IN PUBLIC PLACES" IN ITS ENTIRETY IN ORDER TO PROVIDE AN UPDATED ORDINANCE REGARDING SAME BY ENACTING A NEW SECTION 111.18, "DISTRIBUTING COMMERCIAL AND NON-COMMERCIAL HANDBILLS IN PUBLIC PLACES"; PROVIDING A SAVING CLAUSE, A GENERAL REPEALER CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Delray Beach, Florida, desires to protect its citizens against the health and safety menace and the expense incident to the littering of the streets and public places by the uncontrolled distribution of advertising matter and commercial and non-commercial handbills; and WHEREAS, the City Commission of the City of Delray Beach, Florida, desires to preserve the people's constitutional right to receive and disseminate information in a safe and healthy manner. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA AS FOLLOWS: Section 1. That Title XI, "Business Regulations", Chapter 111, "Advertising", Section 111.18, "Distributing Commercial and Non-Commercial Handbills in Public Places", of the Code of Ordinances of the City of Delray Beach, be repealed in its entirety and a new Section 111.18, "Distributing Commercial and Non-Commercial Handbills in Public Places", be, and the same is hereby enacted to read as follows: Section 111.18 DISTRIBUTING COMMERCIAL AND NON-COMMERCIAL HANDBILLS IN PUBLIC PLACES. It shall be unlawful for any person to deposit, place, throw, scatter or cast any commercial or non-commercial handbill in or upon any public place within the City. Provided, however, that it shall not be unlawful for any person to hand out or distribute, without charge to the receiver thereof, any commercial or non-commercial handbill in any public place to any person willing to accept such handbill. Section 2. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, clause or word be declared by a court of competent jurisdiction to be invahd, such decision shall not affect the validity of the remainder hereof as a whole or part hereof other than the pan declared invalid. Section 3. hereby repealed. That all ordinances or parts of ordinances in conflict herewith be, and the same are Section 4. reading. That this ordinance shall become effective upon its passage on second and final PASSED AND ADOPTED in regular session on second and final reading on this the day of ,2002. ATTEST: MAYOR City Clerk First Reading Second Reading 2 ORD NO.