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08-12-46 Regular 2.. 1 OD AUGUST 12TH, 1946. . Regular meeting of the City Council of the City at Delray Beach was held at 7:30 P. Il. in the Council Chambers in the City Hall with Ilayor Il. Il. DeWitt in the Chair, and City Manager H. P. Edmond, <Cit;v Attorney J. W. Nowlin and the following Councilmen present: B. C. Butler, F. B. IlcNeece and J. B. Smith, a quorum being present. In accordance with a notice to property owners, published in the Delray Beach News as provided for in the City Charter, the Council met as a Board of Equalization to hear camplaints as to the assesSlll!lnts placed on the 1946 Tax Roll. . As routine business was to come before the Council at this meeting, the Board ot Equalization hearing was adjourned until Tuesday mrning, August 13th, at 10:00 0' clock, in a motion made by Councilman Butler, and seconded by Council- man IlcNeece. The mlni1t,es of the meeting of July 22nd were presented and approved as written. Ilr. Ben Adams, Building Inpsector, presented the following applications for building permits on the Federal Highway, for consideration of the Council: Ilr. H. Silber, on the corner of North Federal Highway and 3rd Street. llr. Silber is cO!lnecting three aplrtnents, one office sj:ace and one store space. The fact was brought out that a business could not be operated from a dwelling, and llr. Silber agreed to change his plans to construct only apartnents in the entire building. A mtion was made by Councilman Butler, seconded by Councilman IlcNeece, that permit be granted with the provision that parking space be arranged for in the rear of the building, and subject to the approval of the State Hotel Collllllission. .' No action was taken on the application of Mr.Wm. Fredericks for pennit to build a duplex between two existing buildings on one lot on the southwest corner of North Federal Highway and 3rd Street, as this coostruction 1Il>uld be contrary to the provisions of the Zoning Ordinance. The application of llr. E. B. Nichols for a pennit to conatruct a storage garage on the southwest corner of South Federal Highway and S. E. 1st Street was held up until the next meeting of the Council, and the Clerk was instructed to notify adjoining property owners that a hearing would be held on August 26th to consider the granting of this permit. The. application of Mr. H. Silber for a pennit to construct a concrete , building on Lots 1 8< 2, Block ll4, on the North Federal Highway, between 2nd and 3rd Streets, to be used as an Auto Supply Store, was presented, and in a mtion made by CoUncilman Smith, seconded by Councilman JlcNeece, unanimously . . carried, said permit was granted, as the construction meets all the requireDl9nts of the Building Code. .- The application of Mr. J. R. Shattuck for pennit to build a wooden platform in front of his restaurant at 10 S. Ocean Boulevard, to be 18 inohes high and extend to the street two feet from the present sidewalk, was presented. A IIIOtion was made by Councilman Butler, seconded by Councilman Smith, that a temporary permit be granted, the platfonn to be removed at any time by order of the City Counoil. UpOn call of roll the motion carried nnlln1mously. L 101 AUGUST 12TH, 1946. The application of Jlr. John Banting for oonstruction of a concrete building to be used as a retail fruit packing store on the North Federal Highway between 3rd and 4th Streets, was presented, the building to be 30' x 56' and set back 35' from the Highway. As all requireDl9nts of the Building Code will be met, pennit was authorized upon motion of Councilman Butler, seconded by Councilman JlcNeece, and unanimoualy carried. An application was presented for a pennit to build a two story building 55' south of Atlantic Avenue on S. W. 5th Avenue, same to be built by a colored Doctor. Pennit for this construction was granted in a motion made by Councilman IlcNeece, seconded by Councilman Butler, and unanimously carried. The application of Mr. A. George for a permit to place a post at the west end of his building, which would be 5' from the building itself, after remodeling, was referred to the Zoning Board for recollllll9ndation. City Manager Eanond advised the Council that Judge W. E. Wilcox had asked that llr. Neil lIa"V111 en be appointed to take charge of the Police Court during his absence while on vacation. Upon motion of Councilman Butler, seconded by Councilman Smith, unanimously carried, the appointJulnt of Mr. Ma"Ul1l1ln as Acting Municipal Judge was confinned. Ilr. Edmond explained to the Council the needed improveDl9nts to the beach be1'ore next season, sl.lggesting that JDOre showers be installed at the north and south ends of the neach for the use of bathers. He also recommended the use of a City owned lot 50' x 400' north of the Seacrest Hotel for a parking lot, to relieve congestion along the ocean front, stating that it might be possible to operate the parking lot as a concession, possibly with the umbrella con- cession. The lot would have to be rocked and a small office building erected. The lot would provide space tor approxiDl9tely eighty cars, which would relieve the parking dtuation along the beach. llr. Edmond was asked to obtain estimates far the cost of this work. City lIanager Edmond also recollllll8nded that the pavilllon and the beach benches be p!ItA~d, and th!l grass and beach be cleaned up. As the tractor purchased for use on the beach can not be used for that purpose, it was decided to sell this tractor and purchase equipDl9nt better suited for this work when. available. The following petition, signed by sixty-three property owners, was presented and read in full: "Delray Beach, Florida July 27, 1946. To the llembers of the City-Council Delray Beam, Florida. We, the follo1ling property owners of Delray Beach, request that the City discontinue and revoke building permits which have been issued for the erection of sheet metal buildings east of colored town, and On Atlantic Avenue west ot colored town. If this cannot be done under the present zoning, we request that the zoning be changed to p:rohibiy such construction. We feel that this type of buil!iing lowers the value of the neighboring property and certainly is an untidy sight for any tourist town to be having constructed.w 2.10...... AUGreT 12TH, 1"946. City Attorney NOII'lin was instructed to check this situation and report back to the Council at their next meeting, in the meantime the Building Depart- ment will not iss12l any permits far this type of construction. A letter from Ilr. Joseph R. Ferris was presented, stating that he had pUl'chased a half interest in )lorey's Cocktail Lounge, and aaking that his name be added to that of Mr. John 1oI0rey on the liquor license. Two letters of recolDlllemation were filed by llr. Ferris with his request. The Clerk was instructed to advise Yr. Ferris that he must file a formal application, to be advertised in the local paper for two weeks. If no Objec- tions are filed with the Council after the publication of his application, Council will then consider the granting of his req12lst. A req\lllst from Brock HODl9 8< Auto Supply Co. for a refund of occupational license fee and personal property tax bond in the amount of $ 20.00 each, was presented, stating that they had been unable to lease the store space contellplated, and had never opened their business. It was the opinion of the Council that only the personal property bond should be refunded, as the license fee was paid in good faith and it not re- flDldable. Upon motion of Councilman McNeece, seconded by Councilman Butler, unanimOUSly carried, the Clerk was authorized to make this refund of the $ 20.00 personal property bond. The following applications for occupational licenses were presented for apprcwal: H. O. Wilson (Marion's) - Gift Shop to be located in the Boyd Building. Aileen Keith - Beam Wear and Novelty Shop - l41D East Atlantic Avenue. Glenn R. Wiggam - Tile Contractor, Ft. Lau:lerdale, Florida. Thomas Kemp - Boot Black Shop at S. W. 5th Avenue near 4th Street. As all of the above applications were in order, a motion was made by Councilman Butler, seconded by Councilman Smith, that licenses be approved. Upon call of roll the motion carried unanimously. The following ordinance was then brought up for second and finsl reading, and same was read in full: ORDINANCE NO. G-S AN mDINANCE OF THE CITY COUNCIL OF TIlE CITY OF DELRAY BEACH, FLORIDA, PLACING CERTAIN PRCPERTY IN CERTAIN DISTRICTS UNDER THE CITY ZONING ORDINANCE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, as follows: SECTION 1. That the following described property in the City of Delray Beach, Florida, is hereby placed in the General Business Distriot as defined by the City Zoning Ordinance, to-wit: 2. '1t>~ AUGUST 12TH, 1946. Beg~ at a point on the center line of Atlantic Avenue 250 feet east of the intersection of the center line of Atlantic Avenue with the center line of the right-of-way of the Seaboard Airline Railway, thence run north 160 feet, thence east plrallel to the center line of Atlantic Avenue 339.5 feet, thence south 160 feet, thence west along the center line of Atlantic Avenus to the point of beginning. .~ SECTIOO 2. The follOl'ling descrilied property in the City of Delray Beach is hereby placed in the Manufacturing and Industrial District as defined by the City Zoning Ordinance, to-wit: Comnencing a.t the intersection of the center line of the Seaboard Airline Railway with the center line of Atlantic Avenue, thence run east 250 feet, thence north 160 feet to the point of beginning, thence north 507 feet, thence east parallel to the oenter line of Atlantic Avenue 339.5'teet, thence south '$)7 feet, thence west 339.5 feet to the point of beginning. PASSED in regular session on second aM final reading on this the 12th day of August, A. D., 1946. (Signed) - M. M. DeWitt President of City Council APPROVED : (Siltned) M. 1[. DeWitt Mayor AT'lEST: (Silmed) Ruth R. Smith Cit;v Clerk (SEAL) It being wnerstood that Mr. Fred D. SelJsrs would give a right-of-way deed to the City to 25' along Atlantic Avenue between llth Avenue and 15th Avenue, to be used for street purposes, a motion was made by Councilman Butler, seconded by Councilman JlcNeece, that the foregoing Ordinance No. G-S b8 passed and adopted as read. Upon call of roll the motion carried unanimously. The follo1d.ng cOllll1unication from the Office of the Cheif of Engineers of the War Departnent was read and ordered filed: ., , 2..1o~ AUGUST 12TH, 1946. "8 August 1946 Honorable M. Il. DeWitt, lIa;ror City of Delray Beach Florida Dear Ilayor DeWi tt: Reference is made to your letter of 30 July 1946 inclosing a copy of a public notice dated 28 July 1946 and a copy of a resolution adopted by the City of Delray Beach protesting against the construction of a groin by the Pelican Beach ApartDl9nts, Inc. in the Straits of Florida at the foot , of Seaview Avenue, Palm Beach County, near Boyntal, Florida. In view of the large number of protests being received against the pro- posed work, Colonel A. B. Jones, the District Engineer at Jacksonville has been instructed to hold a public hearing to give all parties at interest "full opporturrlty to be heard. Colonel Jones will be pleased to advise you of the date and tillZl of such hearing. Please be assured that ;jt!)ur views will be given full calsideration in any action taken by the Pepartment. For the Chief of Engineers: Sincerely yours, (Signed) Jack H. Tayler Lieut. Co., Corps of Engineers Exec. Asst., Director of Civil Works" lIayor DeWitt took this opportunity to thank Mr. Edmond for his eftorts in getting up petitions and notifying property owners in connection with this proposed groin construction. He also expressed his thanks to the Lions Club, Veterans of Foreign Wars, Kiwanis Club and the Am9rican IBgion for their Resolu- tions protesting against this construction, to the Police Department for their services in seCuring signers to the petitions, as well as WO!lElrs of ocean front c property who sent letters of protest to this action, and to llr. H. B. Adams who delivered the papers to the War Department Office in Jacksonville. The following Ordinance was then brought up for second and final reading, and salllll was read in full: ORDINANCE NO. G-7 AN ORDINANCE OF THE CITY COUNCIL OF TIlE CITY OF DEIBAY BEACH, FLORIDA, AUTHORIZING. THE ISSlIANCE OF $350,000 WATER SlS'lEJI ltJSVl!iNOJ!: CERTIFICA'lES, SERm 1946, OF THE CITY OF DEIBAY BEACH, PROVIDImiFOR THE SALE THEREOF, PROVIDING FOR THE PAIIIENT OF SUCH CERTIFICATES AND EN'lERING INTO CERTAIN COVENANTS AND AGREE- JlENTS IN THAT CONNECTION. 27 () '3 AUGUST 12TH, 1946. WHEREAS the City of De:Jray Beach owns and presently operates its waterworks plant and system (hereinafter referred to as "the System") as a municipally owned utility; and WHEREAS tlJ;l system was originally acquired through the issuance of general obligation bonds of tIEl City of Delray Beach payable from taxes levied on the taxable property in the City and the system has beenfrCllll time to time improved and extended with the proceeds of various city funds; and WHEREAS it has now beCODl9 necessary for the city to make improvements and extensions to said system at an estimated cost of $ 350,000 and to issue revenue certificates, payable from the revenues of the system; and WHEREAS the charter of the city, being Chapter 18,494 of the laws of Florida, 1937, authorizes the city, through its City Council: 1. To acquire property, real or personal, or allY' estate therein, within or without the city, to be used for the construction of works for supplying said city with water, and to improve, sell, lease, mortgage, pledge or otherwise dispose of the sane or allY' part thereof for the benefit of the city to the same extent that natural persons might do (Section 7). 2. To expend the money of the city for all lawful purposes (Section 7). 3. To make and maintain public improveDl9nts of all kinds (Seotion 7). 4. To furnish any and all local public service (Section 7). 5. To purchase, hire, construct, own, maintain, operate or lease local public utilities, including works for supplying the city and its inhabitants with water (Section 7). 6. To establish, impose and enforce 1I!lter rates, and rates and charges for all public utilities or other service or convenience operated, rendered or furnished by the city (Section 7). 7. To enter into contracts on behalf "of the city (Section 28), and 8. To enjoy all powers, privUeges and provisions of the Revised General Statutes of the State of Florida governing cities and towns when not in conflict with the terms of the charter; and WHEREAS the Supreme Court of Florida has heretofore held in numerous reported decisions that any city granted the above enumerated pOlfers by its city charter has authority to own and operate a waterworks system and to anticipate the collection of the revenues to be derived from the operation of such system through the issuance ot revenue certificates in order to raise the funds needed to provide improvements, additions and extensions to the system, the exercise of such pOlfers being an ordinary and usual function of fiscal management incident to tlJ;l city'S authority to own and operate a public utility; and "2../06 AUGUST 12TH, 1946. WHEREAS the system as it presently exists has become inadequate to serve the inhabitants of the Cit;v of Delray Beach and it is imperative that essential additions and extensions be added to the system in order to p~serve the system and to enable the system to serve the purposes for which the statutes provide it shall be maintained; and WHEREAS the revenues to be derived by the city from the operation of said syst8l1l have not been pledged or hypothecated in any manner or for any pUI'pO se ; and WHEREAS to, revenues to be so derived are more than ample to pay all operating and maintenance costs and to pay principal of and interest on the certificates herein authorized, the net revenues derived from the operation of the system during each of the past three fiscal years being as hereinafter set out; NOW, THEREFORE, BE IT OllllAINED by the City Council of the City of Delray Beach, Palm Beach County, Florida, as follows: SECTION 1. That the City Council has made due investigation and has ascertained and hereby formally finds and recites that the net earnings of the waterworks plant and system of the City of Delray Beach (being the gross revenues after the deduction of all maintenance and operation expenses) for each of the past three completed fiscal years have been as follo1l8: For the fiscal year ending September .30, 1943: $ 33,138.48 For the fiscal year anding September 30, 1944:$ 35,767.27 For the fiscal year eming September 30, 1945: $ 38,306.45 and that therefore the net revenues of said plant and system are fully sufficient to pay principal of and interest on the certificates hereinefter authorized. SECTION 2. That for the purpose of paying the cost of improving and extending the waterworks plant and system of the City of Delray Beach (which plant and system lying within and without the boundaries of the city, including all property of every kind, both relil and personal, owned by the city and used or useful in conneotion therewith and including all additions, improvellllnts and extensiona thereto which may be made whil,ll any of the certificates herein authorized remain outstanding, are hereinafter in this ordinance referred to as "the system"), there be issued the negotiable revenue certificates of the City of Delray Beach (sometiDl9s hereinbefore and hereinafter referred to as "the city") in the total aggregate amount of $350,000, which Certificates are hereinafter sometimes referred as as "the certificates". The certificates shall be dated June 1, 1946, shall be in the denomination of $1,000 each, shall be numbered 1 to 3~, inclusive, shall be payable in lawful money of the United States of Anerica as to boih principal and interest at Chase National Bank in the City of New York, New York, shall bear interest until paid at the rate of two per cent (2%) per annWli, which interest shall be paysble semi-annually on the first days of December and June of each year, am the certificates shall mature serially in nUDl9rical order on June 1 of each year as follows: 'L'1e1 AUGUST 12TH, 1946. 1948 $ 2,000 1961 $ 15,000 1949 5,000 1962 16,000 1950 8,000 1963 17,000 1951 10,000 1964 17,000 1952 10,000 1965 18 ,000 1953 10,000 1966 18 ,000 1954 ll,ooo 1967 18,000 1955 ll,ooo 1968 20,000 1956 12 ,000 1969 20,000 1957 12,000 1970 20,000 1958 13,000 1971 20 ,000 1959 13,000 1972 20 ,000 1960 14,000 _.Certificatee numbered 26 to 350, inclusive, of the issue of which this is one, are callable for redemption at the option of the city in inverse numerical order on June 1, 1951 and on any interest payDl9nt date thereafter at the. principal amount thereof, plus accrued interest to the date fUed for redemption, plus a premium of thirty dollars ($30) as to each certificate re- deemed. Notice of redemj$ion shall be given not less than thirty days prior to the date fbed for red~mtpion through the publication of an appropriate notice one. time in a financial newspaper or journal published in the City of New York, New York, or Chicago, Illinois, and one tiID!l in a newspaper having general circulation in the City of Delray Beach and by filing such notice at the place of payment of the certificates. If any certificate is registered as to principal at the time of such call for :r:edemption, similar notice shall be sent by registered mail to the registered holder. SECTION 3. That said certificates shall be signed by the Mayor of the City of Delray Beach and attested by the City Clerk, and shall have impressed thereon the corporate seal of the City of Delray Beach. Interest falling due on said certificates prior to maturity shall be rep~ented by semi- amual coupons attached to said certificates signed with the facsimile s~gnatures of said Mayor and Clerk, and said officials, by the execution of the certificates shall adopt as and for their own proper signatures their facsimile signatures appearing on said coupons. SECTION 4. That the certificates and the provisions to appear on the back thereof shall be in substantially the following fonn: (FbTiri .or Certificate) UNITED S TA TES OF AMERICA STATE OF FLORIDA COUNTY OF PAD( BEACH CITY OF DEmAY BEACH WATER SlSTEll REVENUE CERTIFICA'lE, SERIES 1946 LID8 AUGlBT 12TH, 1946. Number $ 1,000. The City of Delray Beach, in Palm Beach County, State of Florida, for value received hereby promises to pay to bearer, or if this certificate be registered as to principal, then to the registered owner hereof, solely fran the special fund provided therefor as hereinafter set forth, on the first day of June, 19_, the principal sum of One Thousand Dollars ($1,000), and to pay from said special fund, interest thereon at the rate of tJro per cent (2%) per annum from date hereof until paid, payable sIlmi-annually on the first days of June and December of each year, such interest to the maturity date of this certificate to be paid only upon presentation and sUrrender of the annexed interest coupons as they severally become due. Both principal of and interest on this certificate are payeble in lawful. money of the United States of Am9rica at Chase National Bank in the City of New Yom, New York. This certificate is one of an issue of $350,000 all of like date and tenor except as to maturity and option of redemption, issued by said city pursuant to the provisions of its charter, and pursuant to an ordinance duly adopted by the City Council of said city for the purpose of improving and extending the waterworks plant and system of said city. It is provided in said ordinance that the City Council of said city shall fix and maintain rates and collect charges for the facilities and services afforded by said plant and system sufficient to provide revenues adequate at all times to pay the cost of operating, maintain- ing and repairing such plant and system and to pay into a special fund created by said ordinance amounts fully suf'ficjant, above such costs of oparating, main- ta~ and repairing the system, to provide for the payment of the interest on and principal of said certificates promptly as each falls due. For a more particular statement of the security pledged to such payment and of the con- ditions under which obligations may hereafter be issued on a parity with said certificates, rwference is made to said ordinance. This certificate, including interest hereon, is paysble solely from said fund and the City of Delray Beach is under no obligation to pay this oertificate or interest thereon except from the revenues of the aforesaid plant and system. Certificates numbered 26 to 350, inclusive of the issue of which this is one are callable for redemption at the option of the city in inverse numerical order on June 1, 1951 and on any interest pa1lD8nt date thereafter at the principal amount thereof, plus accrued interest to the date fixed for redemption, plus a premiuJR of thirty dollars ($30) as to each certificate redeemed. Notice of re- demption is to be given not less than thirt.y days prior to the date fixed for redemption through the publication of an appropriate notice one time in a financial newspaper or journal published in the City of New York, New York, or Chicago, Illinois, and one time in a newspaper having general circulation in the City of Delray Beach and by filing such notice at the place of paynent of the certificates. If any certificate is registered as to principal at the time of such call for redemption, similar notice is to be sent by registered mail to the registered holder. This certificate, with interest coupons hereunto appertaining, is issued upon the following terms and conditions, to all of which each taker and owner hereof and of the interest coupons consents and agrees: L. '1 o~ AUGUST 12TH, 1946. (a) Title to this certificate, unless registered as herein provided, and to the annexed interest coupons, may be transferred by delivery in the salle manner as a negotiable instrument payable to bearer; and (b) Any person in possession of this certificate, unless registered as , herein provided, or of the interest coupons hereunto appertaining, regardless of the manner in which he shall have acquired possession, is hereby authorized to represent himself as the absolute owner thereof, and is hereby granted power to transfer absolute title thereto by delivery thereof to a bona fide purchaser, that is, to anyom who shall purchase the _ for value (present or antecedent) witbout notice of prior defenses or equities or claims of ownership enforceable against his transferror;. every prior taker or owner of this certificate, unless registered as herein provided, and of the annexed interest coupons, waivas and rennunces all of his equities or rights therein in favor of every- such bona fide purchaser, and every such bona fide purchaser shall acquire absolute title thereto and to all rights represented thereby; and (c) The City of Delray Beach may treat the bearer of this certificate, unless registered as herein provided, or of the interest coupond hereunto appertaining, as the absolute owner thereof for all purposes without being affected by any notice to the caltrary. All .acts, conditions, and things required by the Constitution and LaWB of Florida and the charter of said city to happen, exist and be performed precedent to and in the issuance of this certificate, have happened, exist and have been performed as so required. This certificate is registerable as to principal alone in accordance .with the provisions endorsed hereon. IN WITNESS WHEREOF, the City of Delray Beach has caused thi certificate to be signed by its Mayor and attested by its City Clerk, under ts corporate seal,. and the interest coupons hereto atte~ execute h the facsimile s~natures of said Mayor and City Clerk, aV;' of ir d y of J e.,.-J.946. Mayor of the City of Delray Beach Attest: l~i Clerk of the City of Delray Beach Approved as to form, language and execution. City Attorney (Fonn of Coupon) Number $ 1000. L. '1, G AUGUST 12TH, 1946. On the first day of , 19_, unless the hereinafter mentioned certificate is then subject to redemption and has been called for .redemption and provision for the redemption thereof duly made, the City of Delray Beach, Florida, will pay to bearer at Chase National Bank, in the City of New York, New York, the sum of Dollars ($ ), solely from the special fund referred to in and for the semi- annual interest then due upon its Water System Revenue Certificate, Series 1946, dated June 1, 1946, and numbered . Mayor Attest: City Clerk (Fonn of Validation Certificate) Validated and conflnned by a decree of the Circuit Court of the Fifteenth Judicial Circuit, in and for Palm Beach County, Florida, rendered on the _ day of , 1946. Clerk of the Circuit Court, Palm Beach Count;v, Florida. (Certificate of Registration) This certificate may be registered as to principal on the books of the City Clerk, notation of said registration to be made hereon by said Clerk, and this certificate may thereafter be transferred on said bocks by a written assignment by the registered owner or his attorney, duly acknowledged or proved, such transfer to be endorsed hereon by said Clerk. Such transfer may be to bearer and thereby transferability by delivery shall be restores, subject hOll'ever, to successive registration and transfers as before. The principal of this certificate, if registered, unless registered to bearer, shall be payable only to the registered owner, or his legal reppesentative, but the coupons appertaining hereto will re- main payable to bearer, notwithstanding registration of this certificate. Date of Signature of Registration Nams of Registered Holder Clerk SECTION 5. That the Water System Revenue Certificates, Series 1946, shall be registerable as to principal in accordance with the provisions for registration hereinabove provided for endorse_fit upon said certificates, and the City Clerk is hereby appointed and designated registrar for such purpose. + LIII AUGUST 12TH, 1946. No charge shall be made to any holder of said certificates for the privilege of registration. SECTION 6. That the City of Delray Beach hereby covenants and agrees with each successive holder of the certificates and the coupons thereto attached that it will fix and maintain rates and collect charges for the facilities and services afforded by the system fully sufficient at all times, (a) To pay the reasonable and necessary cost of operating, maintaining and repairing the sys tem; (b) To maintain and pay promptly as hereinafter required into a fund to be known as the "Water System Revenue Certificates Sinking Fund" amounts fully sufficient to pay and from which there shall be paid without distinction between the certificates or Obligations of various series, principal of and interest on the certificates herein authorized, and all obligations which may be issued in the future on a parity herewith under the provisions of Section 8 of this ordinance. Said fund shall be maintained at all times in an amount sufficient to provide for the prompt payment of such principal and interest as they fall due and to provide a reserve for contingencies in the manner hereinafter set out; and (0) To provide an adequate depreciation fund for the system. SECTION 7. That the gross revenues of the system shall be deposited as received in an account separate and apart from all other city funds or accounts, to be designated as the "Water System Revenue Account", and the moneys in said Water System Revenue ACcount shall be let aside on the first day of each month into separate and apecial funds as folloWB: (a) Operation and Maintenance Fund: The fund known as the "Operation and llaintenanoc Fund", into which there shall be paid out of the gross revenues a sufficient amount for the reasonable current expenses .of operating, maintaining and repairing the system. , F d: The fund described in sub-section b of Section 6 above, which dlund is hereinafter sometines referred to as the "sinking fund". After making the payments into the Operation and llaintenance Fund above provided there shall then be set aj:art am paid into said sinking fund in approximately equal JDOnthly installmente an amount of the remaining gross revenues recehed for the services rendered by said system sufficient to pay during each fiscal year one hundred twenty per cent of the amount of the next maturing installment of principal and the amount of the interest payments falling dUe on all obligations payable therefrom up to and including the date on which the next maturing. installment of principal falls due. The surplus accumulated in the sinking fund by reason of the additional twenty per cent payments to be so made shall be permitted so to accumulate until such time as there shall be in said sinking fund money fully sufficient to pay all principal of and interest on said obligations payable therefrom which will fall due during the ensuing twelve (12) months. Thereafter the payments so made into the sinking fund may be in the amount of one hundred per cent rather than one hundred twenty per cent of the amounts above specified and the remainder of said gross re'Venues after payments have been 2./1 v AUGUST 12TH, 1946. made into the Operation and Maintenance Fund may be used for the establishment of a depreciation fund or for such other purpose as the city may consider ad- visable, provided however, that as soon as any money has been paid out bf, the reserve in said sinking fund, then said add! t10nal twenty per cent payments shall again be paid into said sinking fund, until there is again in said fund money fully sufficient to pay principal and interest falling due during the ensuing twelve (12) months. All money in the sinking fund is to be deposited in a solvent bank as a fund s~parate and apart from all other city funds, and is to be continually secured by surety bond or bonds written by a surety company or campanies of recognized standing or by the valid pledge of direct obligations of the United States of America, having an aggregate market value, exclusive of accrued in-:- terest, at. all times equal to the sum on deposit. SECTION 8. That while any of the Water Systeljl Revenue Certificates, Series 1946, issued hereunder shall be outstanding, the city will not issue any additional obligations payable from the revenues of the system unless the lien of such obligations on the revenues of the system, in- cluding such improvements and extensions thereto as may hereafter be made, is made junior and subordinate in all respects to the lien of the Water System Reven~ Certificates, Series 1946, issued hereunder. The provisions of this section shaJ.], inure to the benefit of and be enforceable by any holder of the ",certificates issued hereunder. The provisions of this section are subject to the following exceptions: h If prior to the payment of the certificates herein authorized it shall be found desirable to. refund said certificates under the provisions of any law then available, said certificates or any part thereof may be refunded (but, unless the certificates to be so refunded have '!natured or are optional for redemption and have been duly called for redemption, only with the consent of . '" the holders thereof), and the refunding obligations ED issued shall enjoy complete equality of lien with the portion of said certificates which is not refunded, if any there be, and the refunding obligations shall continue to enjoy whatever priority of lien over subsequent issues may have been enjoyed by the certificates refunded, provided however, that if only a portion of the certificates outstanding . ., is so refunded and if such certificates are refunded in such manner that the .' irtterest rate borne by any of the refunded certificates is increased or that the refunding obligations mature at a date earlier than the maturity date of any of the certificates not refunded, then such certificates may not be refunded without the conBfinlo':of the holders of the unrefunded portion of the certificates. .__ k. Additional obligations may be issued on a parity with the certificates . herein authorized, for the purpose of repairing, improving or extending the system if all of the following conditions are met: (a) The net eamings of the system (being the gross revenues after the de- duction of all maintenance and operation expenses) for each of the three canpleted fiscal years prior to the issusnce of such additional obligations must have been equal to at least one and one-half tiDl9s the highest combined iil.terest and principal requirements for any sucoeeding twelve months' period on all obliga- tions payable from the revenues of the system, including the obligations then pro- posed to be issued. L"\)~ AUGUST 12TH, 1946. (b) The paYD'nts required to be made into the respective funds provided in Section 7 of this ordinance must have been made in full. (q) There must be sufficient money in the Water System Revenue Certificates Sinking Fund, including the reserve surplus, to pay all principal of and interest on the certificates payable therefrom and then outstanding, which principal and interest will become due during the twelve months' period next succeeding the issuance of the additional obligations. (d) The additional obligations must be payable with principal falling due on June first of each year and interest falling due on June first am December first of each year. (e) The proceeds of the additional obligations must be used solely for the making of repairs, improvements or extensions to the system. SECTION 9. That the City of Delray Beach hereby covenants and agrees with each and every successive holder of the bonds issued hereundert (a) That the city will maintain the system in good condition, and operate the same in an efficient manner and at reasonable cost; (b) ~at as long asany of the certificates issued under the provisions of this ordinanCe remain outstanding, the city will maintain insurance on the system for the benefit of the holder or holders of all obligations payable from the revenues of the system of a kind and in an amount which would normally be carried by private companies engaged in similar business. The cost of such insurance may be paid from the Operation and Maintenance fund, for which provision is above made, and the proceeds of any such insurance received by the city shall be used to replace the part or parts of the system destroysd, or if not so used, !lhall be placed in the sinking fund above created; (c) That so long as any of the certificates issued hereunder are outstanding the city will not mortgage, pledge or otherwise encumber the system, or any part thereof, or any revenues to be derived therefrom, except as provided in this ordinance", and will not !lell, lease, or otherwise dispose of any substantial portion of the system; (d) That the city will keep proper books, records am accounts, separate fran all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the system. Said books and accoun.ts shall be kept as nearly as may be in accordance with the rules and. regulations commonly foll01led by privately owned utilities, and the city will;@' furnish to any holder of any of the certificates issued hereunder, upon writte request after the close of each fiscal ysar, complete operating and income state:' 1118nts of the system in reasonable detail covering such fiscal year; (e) That the bolder or holders of twenty-five per cent in aggregate p~ncipal amount of the certificates issued hereunder at any time outstanding shall. have the right at all reasonable times to inspect the system and all records, accounts and data of the city relating thereto, and that upon request the city will fumish to such holders suoh financial stat_nts and other information re- lating to the city and the system as such holder or holders may tram time to time reasonably require; 2..'11 ~ AUGUST 12TH, 1946. (f) That while the certificates authorized herein, or any of them, remain outstanding and unpaid the rates for all services rendered by the system to said city and to its citizens and to all cons11lll!!rs within or without the boundaries of said city shall be reasonable and just, taking into account and consideration the cost and value of the system am the cost of maintaining and operating the system, and the proper and necessary allowances for the de- preciation thereof, and the amounts necessary far the retirement of the obliga- tions payable from the revenues of the system, am the payment of interest there- on, and there shall be charged against all users of said service, including said city, such rates and amounts for service, including fire protection and hydrant service, as shall be adequate to meet the requirements of this and the preceding sections hereof, and that all revenues received from such rates and charges will be placed in the separate accounts and used as provided by Section 7 hereof. ~ SECTION 10. That no taxes shall ever be levied and no moneys shall ever be taken or diverted from any fund of the city for the payment of the principal of and interest on the certificates issued hereunder, except as hereinbefore expressly provided. SECTION ll. That the sale of the certificates to Equitable Securities Corporation of Nashville, Tennessee, for the price of $336,455 plus accrued interest thereon to the date of delivery is hereby ratified and con- finned. The certificates shall be prepared and executed as soon as may be after the adoption of this ordinance and after the validation certificates on the back thereof have been properly executed, shall be delivered to said purchasers upon payment in accordance with the terms of sale. SECTION 12. That the City Attorney is hereby authorized and directed to take appropriate proceedings in the Circuit Court of the Fifteenth Judicial Circuit of Florida, in and for Palm Beach County, for the validation of said certificates, and the Mayor and Clerk are authorized to sign any p1eadings in such proceedings for and in behalf of the City Council of the City of Delray Beach. . SECTION 13. That if any section, paragraph, clause or provisiomof this ordinance shall be held to be invalid or unenforceable for any reason, the validity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this ordinance. SECTION 14. That this ordinance shall be published one time by caption iDmediately after its adoption on second and final reading in the Delray Beach News, a newspaper published and having general circulation in the City of Delray Beach, Palm Beach County', Florida. . Adopted on first reading, July 22, 1946. Adopted on second reading, August 12, 1946. (Sbned) Y. Y. DeWitt President, City Council A TTl!B T: (Si~ed) Ruth R. Smith (~lllT.' t'!1br m....w- APPROVED : (SiJ!ned) 11:. Y. DeWitt Mayor 2...115"" AUGrnT 12TH, 1946 The above ordinance and the forms of Water System Revenue Certificate and coupon therein contained are hereby approved as to form, language and execution, this the 12th day of August, 1946. (Slimed) J. W. Nowlin City Attorney A JDOtion was made by Councilman Butler, seconded by Councilman Smith, that the foregoing Ordinance No. G-7 be passed and adopted on second reading, and upon call of roll the JDOtion carried unanimously. The following ordinance WillS then brought up for first reading, and same was read in full: ,Ii AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FlORIDA, PLACING CERTAIN PROPPIl.TY IN CERTAIN DISTRICll3 UNDER THE CITY ZONING ORDINANCE . - A motion was made by Councilman Butler, seconded by Councilman Smith, that the foregoing Ordinance be placed on firBt reading, and upon call of roll the motion carried unanimously. The following Ordinance was then brought up for first and second readings as an emergency.maasure, and sallll was read in full: ORDINANCE NO. G-9 AN EMERGENCY ORDINANCE OF THE CITY OF DEmAY BEACH, FLORIDA, PLACING CERTAIN PROPERTY IN RESIDENCE liB" DlSTRICT. WHEREAS, an emergency exists in the City of Delray Beach, Florida, due to the fact that certain property which should be placed in a Residence District has been ii'ladvertantly placed in a business district and it is necessary for the preservation of public peace and safety that this ordinance be passed as an eDl9rgency ordinance. NOW, 'Il1.l!iW!iI'ORE, BE IT ORDAINliD by the City Council of the Cit;y of Delray BeaCh, Florida, as follows: SECTION 1. That the following described property in the City of Delray Beach, Florida, is hereby placed in Residence liB" District as defined by the City Zoning Ordinance, to-wit: All property in the City of Delray Beach, lYing between a line 133 feet North of the center line of Atlantic Avenue and a line 133 feet South of the centerline of Atlantic Avenue and lying West of East Fifth AvenUland lying East of the right-of- way of the $Baboard Air Line Railway, except that portion lying on the North side of Atlantic Avelll1e extending East a distance of 589.5 feet from the center line of the Seaboard Airline Railway tracks. .2...11b AUGUST 12TH, 1946. SECTION 2. This is an eDIlrgency ordinance and shall become effective immediately upon its passage on first reading. PASSED in regular session on first and final reading on this the 12th . day of August, 1946. (Sil!:ned) Il. M. DeWitt President, City Council APPROVED: (Sil1:ned) M. M. DeWitt Mayor ,. ATTm3T: (Sil!:ned) Ruth R. Smith City Clerk (SEAL) A motion was made by Councilman Smith, seconded by CounCilman Butler, that the fOI'l!lgtl.ingordinanee No. G-9 be passed and adopted as read as an e..rgency masure, and upon call of roll the motion oarried unanimously. Upon I'l!lcommendation of the City Manager, a refund of $ 26.00 paid by Martin Barrows in the Firemen's Pension Fund was authorized to be refunded to him. A motion was made by Councll'"!l'l. Butler, seconded by Councilman McNeece, that the Cle:rk. be instructed to. advertise for $ 30,000 Refunding Bonds of the City of Delray Beach, and upon call of roll the JDOtion carried unanimously. Bills totaling $ 1l,4SS.S2, having been approved by the Finance CoIIlIIlittee, were ordeI'l!ld paid, upon. JDOtion of Councilman McNeece, secOnded by Councilman Butler, and unanimously carried. Report of the Building Department for the JDOnth of July, was presented and ordered filed. The report showed the following permits issued: Building permits Ele ctrical " Plumbing " $ 100.10 36.90 95.00 $ 232.00 , I ci Council then adjourned to Tuesday, August 13th at 10:00 o&clock, at which time it will sit as a Board of Equalization to hear complaints as to assessDl9nts made on the 1946 Tax Roll. '~M lIavor p Cit;v Clerk ""'''..--,''-''