10-22-46 Special
:,111)
.11
OCTOBER 22ND, 1946.
A Special Meeting of the City Council was held at 8:30 P. M. in the
Council Chambers to hear a report from Mr. J. w. Nowlin, City Attorney, on the
validation of the Water Revenue Certificates, with Yayor M. M. DeWitt in the
Chair, City Manager H. P. Edmond, City Attorney J. W. Nowlin, and the following
Councilmen present: B. C. Butler, F. B. McNeece, J. B: Smith and C. J. White,
a quorum being present.
,0
Mr. Nowlin stated that a hearing had been called on October 15th for the
validation of the Water Revenue Certificates by the Circuit Court. At this hear-
ing the State's Attorney filed an amended answer with a newspaper copy of petition
filed with the Council on September 23rd by Mr. W. A. Jacobs, asking that an
election of freeholders be called. In this answer he alleged that it was not
good business on the part of the Council to go ahead with the validation of the
certificates.
The hearing was adjourned until October 17th, to give the City an opportunity
to file a motion to have the state's Attorney's file struck from the records. At
this second hearing the Judge granted the City's motion to strike the State's
Attorney's file. However, Attorney W. Terry Gibson, representing Mr. W. A. JacobS,
wes present, stating that he hadn't had sufficient time to check into the pro-
'csedings, and asked the Judge for an extension of ten days fll1' study before giving
his answer. This was granted by the Judge.
Mr. Nowlin also reported that on October 16th Mr. Jacobs caIIlS to his office
lllld wanted to make a proposition from Mr. Geo. A. Bullard of the Equitable Securities
Corporation, that if the City would drop the validation proceedings Mr. Bullard
would pay all costs that the City had been to, about $ 3,000.00.
He told Mr. Jacobs that he thought Mr. Bullard's proposition should have been
made to the City Council and not to Mr. Jacobs, and that he did not think the City.
Council would be interested in the proposition, but he would report it to them. .
Mr. Edmond, City Manager, then presented a proposal submitted to him by Mr.
Ilullard, and same was read in full, as follows:
..
"October 22, 1946.
Honorable Mayor and City Council
Delray Beach, Florida
'Gentlemen:
In reference to your $ 350.000.00 Delray Beach Water Revenue Certificates
which we agreed to purchase from you under contract dated June 8, 1946, it has
been brought out, that due to scar.city of materials and labor, it would probab1.7
be quite a delay before the City can proceed with a $ 3",000.00 water system
improvement program. It has also been brought out that regardless of the present
high construction cost, it is necessary that the City proceed immediately with
additional water supply, pumping facilities and elevated storage, which is required
to meet the needs of the present day demands for water supply and distribution.
These necessary itema have been estimated to cost 'approximately $ 200,000.00
~~
OCTOBER 22ND, 1946.
NOW, THEREFORE, we wish to submit the following proposal:
(1) After the present validation of the $ 350,000.00 Water Revenue
Certificates, it is agreed that the City will deliver to us $ 200,000.00
of the $ 350~OOO.00 certificates. Said $ 200,000.00 being the first maturing
certificates, tQ,;aeco~'a!,te'ata priCe of 96.13, bearing interest at 2%,
according to our bid. In consideration of our accepting delivery promptly
when validated, of the above $ 200.000.00 first III!lturing certificates, the
City will hereby release us from any liability on the $ 150,000.00 relllll.ining
certificates, which will be held by the City, and the City also agrees not
to offer at public or private sale, the remaining $ 150,000.00 certificates
for at least a psriod of ninety (90) days from the date of the delivery
of the $ 200.000.00 certificates.
(2) This proposal is eontingent upon we and our associates being able to
withdraw all opposing litigation in connection with validation proceedings
of the certificates now pending.
(3) We and our assoeiates will not in any way, make any claim against the City
for any damage or loss which we feel are dUll us in connection with the
validation of these certificates.
Very truly yours,
STRANAHAN, HARRIS & COlIP ANY
EQUITABLE SECURITIES CORPORATION
By (Signed) Geo. N. Bullard
Ute r discussion of the foregoing proposal, it was the consensus of opinion'
of the Council that the Equitable Securities Corporation had made a contract with
the City in good faith to purchase $ 350,000.00 Water Revenue Certificates at 96.13
bearing 2% interest, whereupon a motion was made by Councilman White, seconded by .
Councilman Butler, that the proposal submitted by Mr. Geo. A. Bullard be rejected,
and that the Clerk be instructed to so advise him. Upon call of roll the motion
carried unanimnusly.
Mayor DeWitt explained that at a Council JII!Ieting held on September 23rd a
petition had been filed bearing 159 signatures of persons objecting to the is suance
of these Water Revenue Certificates, and requesting that a freeholder's eltlction
be held to vote on the issue. The petition had no bearing on the situation as the
tilIlS limit for filing a petition had expired. Since that time several letters had
been filed by persons asking that their names be withdrawn from the ptition. These
letters were ordered filtld with the data concerning this meeting.
With reference to the final payment to Mike Blank Nurseries under their contract
for Watsr Works Improvements. Mr. Edmond advised that their contract calls for proof
that all bills have been paid before making a final settlement, whereupon a motion
was made by Councilman White that we pay to lIike Blank Nurseries the balance on 1heir
contract after they have furnished cancelled checks or paid bills showing that all
materiai bills have been paid, and an affidavit stating that all bills for labor have
been paid. TIre motion was seconded by Councilman JlcNeeee, and upon call of roll
carried unanilllously.
'2.\
OCTOBER 22ND, 1946.
Mr. C. W. Garner, being in the audience, addressed the Council, stating
that he thought a very wise decision had been made in rejecting the offer of
Mr. Bullard, and offering his help in any 1i!lY possible to assist in the validation
of the certificates.
Council then adjourned.
A~
el~ (2- ~ "I-:lf)
Ci ty Clerk
Jlayor
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