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01-24-39 Special 1.1.30 COUNCIL OHAMBER January 24th. 1939 I' The Oo~ncil met in special session at 6:00 P.M. on call o~ the ~yor. City Attorneys Adams & Nowlin and all the OOlmcilmen were present as were all members o~ the Oitizens Advisory Oommittee.. viz. W.O. Jelks. Oha,s. D. Boughton, E.M. Wilson. H.A. Hubbard and Paul, Rehr. Messrs. ThoS. M. Oook and E.W. Jackson o~ the firm of Thos. M. Oook & Oompany o~ West Palm Beach were also present. The Mayor announced the meeting had been called for the purpose o~ receiving the report and recommendation of the Oitizens Advisory Oommittee as to its proposed rerunding program. Thereupon the Mayor turned the meeting over to Mr. Jelks. Chairman o~ said Advisory Oommittee. Mr. Jelks stated that although no joint meeting o~ the committee and the Oouncil had been held since December 14th his committee had endeavored to acquaint the individual council members. ~rom ~~;;;;g::~L;~:fu~~mj::~!ffi~~~;f~:::t~~ He stated the proposition now of~ered by l the Oommittee. tho~gh not identical with the ten- , tative plan recommended at last meeting. was sub- stantially so. and was the very best one they could hope to of~er the city. Time. he said, wa~ the essential f~ctor to be considered. since the Oity had, been given only until February 1st to answer the pendindmandamus suits which demanded that excessive millage levies be madelO1l' debt service. Mr. Oook. he said. had made ~lying trips to Ohicago and Toledo where the bulk of the bond- holders had been contacted, and taking Into con- sideration the ~onds controlled personally by Mr. Oook it was the'opinion of the CommItt,ee that the proposition all6ut to be submitted coU1dbe put over.. He said it woUld be up to Mr. Cook. to sell it to the bondholders. which Mr. Oook believed he could do. The Ohair stated also that in any refunding transacted by Mr. Oook as agent ~or the Oity. the Bondholders Oommittee o~ Toledo would want theassur7 ancethat they were dealing with an o~~icial appointed as the Oity's ~iscal agent, by the Oouncil. 1; Jfj i, L ' . OOUNOIL OHAMBER - January 24th. 1939 llr~ telks ,sai.d <tJ(;r. Cook has submitted the proposition to ~he Bondholders Committee who have tentatively agreed to this schedule. which is virt- ually the same as presented previously to the Oouncil. tt . It was stated that undoubtedly the City would be obliged to adopt Wilcox Bankruptcy pro- ceedings to force compliance o~ dissenting bond- holders. !. It was fUrther stated that ordinarily the expense of refunding is borne by the individual bondholders but that in this instance the bonds deposited with the Bondholders Committee were up in such a way that in case of any refund. less o~ who does the work, it is stipulated the Committee shall be paid a commission o~ one point., Although the Bondholders Committee would be involvec! in no way in the refunding. now proposed and would do-none of the' work. it was stated Mr. Mittendorf had refused to relinquish claim to the one point commission. Mr. Cook would be sat1s~ied with this one percent f6rhis work as ~iscal agent ~or. the SUMessfUI rlltundlng o~ the City's debt but in case ,M:r.Mitt.endor~ continued to refuse payment by the bondholders to Mr. Cook o~ said one percent then in that caSe Mr. Cook would want a gentlemaD~s agreement ~ro.ql the Council to the e~~ect that.. the<,.. City will pay' hIm one-hal~ o~ ... one percent o~,~~ . re~unding whiCh would amount to not less than $~.O" nor more than $7.000.00. . The refunding agreement. as tentatively prepared and submitted by the Citizens Committee. was then read in full and in detail. explanations being supplied by Mr. Oook on the various terms of said agreement. Upon being questioned as to prObable attor- neys ~ees to be charged the City in the proposed refunding. Attorney Adams stated these would be co~ensurate with the work involved. and the cost would naturally b~ increased i~ it was necessary to go through Federal Bankruptcy proceedings. . , Chairman Jelks stated that since the had only until February 1st to do something refunding. his committee recommended that the go into the subMitted agreement. sign same and gi~e it to Mr. Cook so that he might leave immediately ~or Toledo to negotiate further with the Bondholders. It was therefore moved by Counoi1JBan B:I:'adshawthat the ~ollowing resolution be adopted aOCepting and approving Mr. Jelk'~recommendat10n'with' the under- 1131 OOUNCIL CHAMBER - January 24th. 1939 standing that the proposition will ultimately be submitted to a re~erendum vote by the freeholders of Delray Beach and that Thos. M. Cook will act as ~iscal agent of the City to put said refunding pro- gram through. RESOLUTION 1. 1.1 RESOLUTION OF THE CITY OF DELRAY BEACH. FLORIDA. AU'prORIZING THE MAYOR AND CIT:Y CLERK TOEXl!lCUTE CONTRACT WITH THOMAS JiJ. OOOK AND COMPANY FOR ITS APPOINTMENT AS FISCAL AGJI:NT FOR THE PURPOSE OF REFUND- INGTHEOITY'S DEBT STRUCTURE. Mr. Orego seconded the motion and on rOll call the Vote waS as :t'o1l.ows: Iob:'. Bradshaw yes . Mr. Crego yes. Mr. Hall y~s. Mr. Hill yes. Mr. Miller yes. The motion wasdea1ared carried. Said agreement was thereupon executed in duplicate by Tb:Os. II. Ootlkrepl'esenting the FIRST PARTY and the Mayor and memberso~ the Oity Council representing the SECOND PARTY. duly attested by the Oity Clerk, -and" the City seal a~fixed thereto. Members o~ the Council stressed the desir- ability o~ definitely exempting from liabUitytor debt service all resources o~ the water departmen.t. The business of the meeting having been concluded it was regularly moved, seconded and carried that Council adjourn. ~l~~~ APPROVED : ..~~ yor . v . .,? ,.' "1, 1.132 .