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Ord G-265(23-57) EMERGENCY ORDINANCE NO. G-26~. Delray Beach, Florida July th.. _ , 19 7 The City Council of the City of Delray Beach, Palm Beach County, Florida, met in ...sp. egi..al., session at the regular meeting place of the City Council in the City Hall in the City of Delray Beach at 2:30 o' clock P...M. on July ~th , 19~?, with Mayor George V. Warren and the following Members present: Col. Dugal G. Campbel~l Mr. R.. J. Holland Mrs. Martha K. Holland Mrs. Catherine E. Strong There were absent ~ NONE There were also present .R.o.bert D. Wor. t.h$~n.~ , City Clerk, W. E. Lawson ..Jr..~ , City Manager, and Harry T. Newett , City Attorney. After the meeting had been duly called to order by the Mayor and the minutes of the preceding meeting had been read and approved, the following ordinance was introduced in written form by W. E. Lawson Jr...~ ., was read in full and discussed. It was thereupon moved by .C.o..mmis. si.on~e.? 9.. E.. St.r.0ngthat for the reasons stated in the emergency section of the ordinance, the charter requirement for the adoption of ordinances at two separate meetings be waived. The motion was seconded by L_ R. J. Ho.lland and was adopted by the following vote: Aye: MaYor Geo~rEe V. Warren . jC. ol. ~Dugal G. Campbel~l _ Mr. R. J. Holland Mrs. Martha K. Holland Mrs. Catherine E. Strong _ Nay: None. The ordinance was thereupon again read in full, was discussed, and pursuant to motion made by Comm.. C. E. Str.0nE and seconded by Commo R. J. Ho_llan.d_., was adopted by the following vote: Aye: Mayor Georse V. Warren __ _ Co!. O,u al G...Camp..b?ll ~r. R. J. Holland Ers. Martha K. Holland ~_rs. Ca~_h_er~ine E. Strong Nay: None The ordinance was thereupon signed by the Ms, or, approved by the City Attorney, and was declared to be immediately in effect. The ordinance is as follows: AN ORDINANCE authorizing the issuance of ~r~,3~','O'~'0 Water Revenue Certificates, Series 1957, of the City of Delray Beach for the purpose of refunding certain out- standing Water Revenue Certificates of said city and for the purpose of making improvements and extensions to the water- works plant and system of said city, pro- viding for the sale of said certificates, providing for the security and payment thereof, making certain provisions in that connection, and declaring an emergency. WHEREAS. the City of Delray Beach now owns and operates a waterWorks plant and system for the purpose of supplying water and water service to said city and its inhabitants and the inhabitants of the territory adjacent thereto, which complete waterworks plant and system as it now exists and may hereafter be improved and extended, consisting of all real and personal property of every nature owned by the City of Delray Beach and used or useful in the operation thereof, whether within or without the boundaries of the city, are hereinafter in this ordinance sometimes referred to as "the system"; and -2- ~HEEEA~ %here is urgent necessity for the making of improvements and extensions to said waterworks plant and system and the city has no funds available for such purpose and desires to finance the construction thereof through the issuance of water revenue certificates payable from the revenues of the system in the manner hereinafter provided; and ¥~EEEA~ the city now has outstandin9 two issues of certificates secured by a pledge of and lien on the revenues of the system, which certificates consist of $109,000 certificates dated 3une 1, 1946, bearing interest at two per cent per annum and falling due serially 3une 1, 1955 to 3une 1, 1965, and $275,000 certificates dbmed June 1, 1952, bearing interest three per cent per annum and falling due serially 3une i, 1958 to 3une 1, 1974, inclusive; and %'~EREA______~S in order to make it possible to finance the issuance of the necessary improvements and extensions to the system and free the revenues of the system so that they can be pledged %o the paymen~ of the certificates to be issued for that purpose and in order to make possible the issuance hereafter of combined water and sewer revenue certificates payable from the revenues of both the water and sewer systems so that the city can provide for the making of improvements to its sanitary sewage dis- posal facilities ordered to be made by the State Board of Health, i~ is necessary to retire the above described certificates by calling said certificates for redemption on December 1, 1957, pur- suant to the right of redemption therein reserved, and depositing with the paying agent ti~erefor principal, interest and redemption premiums which will be due on said date; and %'~%EA______~S the refunding of the aforesaid certificates is essential both in order to promote the marketability of the cer~ifi- ca±es which are to be sold for improvements and extensions and to -3- enable the city to issue certificates at a consequent savings in interest cost and it is to the advantage of the city to refund said certificates in order that the certificates herein authorized may be secured by a first lien on the revenues of the system, and also in order to make possible the construction of sewage disposal facilities hereafter as above set forth; and ~WHER~ the charter of the City of Delray Beach contains full and adequate authority for the acquisition, maintenance and operation of a waterworks plant and system and for the borrowing of money for city purposes and for waterworks purposes, and the city therefore has authority to anticipate the revenues to be derived through the operation of its waterworks system by the issuance of its water revenue certificates, the exercise of such power being an ordinary and usual function of fiscal management incident to the city, s authority to own and operate such system; and ~WH~. EAS~ the revenues to be derived from the operation of said system are more than ample to pay the cost of maintaining and operating said system and to pay principal of and interest on the eertificates herein authorized; ~ THEREFORE, Be It Ordained by the City Council of the City of Delray Beach, Palm Beach County, Florida, as follows-~ Sec.~io~n 1. That for the purpose of obtaining funds to make necessary improvements and extensions to its waterworks plant and system, including the payment of proper incidental, engineering, legal and fiscal costs, and for the purpose of refunding the water revenue certificates of the city now outstanding in the aggregate amount of $384,000 as recited in the preamble hereto, for the payment of no Part of which does the city have any funds available, there shall be borrowed Upon the credit of the income and revenues of the system the sum of $1,378,000. The City of Delray Beach is sometimes in this ordinance referred to as "the city". Section 2- That in evidence of the sum to be so borrowed there be issued the Hater Revenue Certificates, Series 1957, of the city. ~ec~ip~ ~. That said certificates shall be designated 'Water Revenue Certificates, Series 1957',, shall be in the total aggregate principal amount of $1,378,000, shall be dated June 1, 1957, shall be in the denomination of $1,000 each, shall be num- bered from ! to 1378, inclusive, and shall bear interest at such rate or rates not in excess of five and one-half per cent (5~%) per annum as may be determined by resolution to be adopted by the City Council at or subsequent to the sale of the certificates, which interest shall be payable from date until paid, payable December 1, 1957 and semi-annually %hereafter on the first days of June and December of each year. The certificates shall be payable as to both principal and interest in lawful money of the United States of America at The Chase Manhattan Bank in the City of New York, New York, and shall mature serially in numerical order on 3une 1 of each of the years as follows: Certificate Numbers ..... Amount Yea..__~r 1 to 17 $17,000 1958 18 to 35 18,000 1959 36 to 54 19,000 1960 b5 to 73 19,000 1961 74 to 93 20,000 1962 94 to 114 21,000 1963 115 to 136 22,000 1964 137 to 159 23,000 1965 160 to 183 24,000 1966 184 to 208 25,000 1967 209 to 234 26,000 1968 235 to 262 28,000 1969 263 to 291 29,000 1970 292 to 321 30,000 1971 322 to 352 3!,000 1972 353 to 385 33,000 1973 386 to 419 34,000 1974 420 %o 455 36,000 1975 .456 to 492 37,000 1976 493 to 531 39,000 1977 532 to 572 41,000 1978 573 to 614 42,000 1979 615 tO 658 44,000 1980 -5- Certificate N .umb.ers Amoun,,t Year 659 to 704 $46,000 1981 705 to 753 49,000 1982 754 to 804 51,000 1983 8o5 to 857 53, ooo 1984 858 to 913 56,000 1985 914 to 971 58,000 1986 972 to 1032 61,000 1987 1033 to 1095 63,000 1988 1096 to 1161 66,000 1989 1162 to 1230 69,000 1990 1231 to 1302 72,000 1991 1303 to 1378 76,000 1992 Certificates numbered 235 to 1378, inclusive, shall be callable for redemption in inverse numerical order on June 1, 1968 and on any interest payment date thereafter at the principal amount thereof plus accrued interest to the date fixed £or redemption and a premium of $30.00 for each certificate so redeemed on or prior to December 1, 1971, $25.00 for each certificate so redeemed thereafter on or prior to December 1, 1975, $20.00 for each certificate so redeemed there- after on or prior to December 1, 1979, $15.00 for each certificate so redeemed thereafter on or prior to December 1, 1983, $10.00 for each certificate so redeemed thereafter on or prior to December 1, 1987, and thereafter without premium. Notice of redemption shall be given not less than thirty days prior to the date fixed for redemption by the filing of an appropriate notice with the above named paying agent bank and the publication of an appropriate notice one time in a financial news- paper or Journal published in the City of New York, New York. $.e.c..ti°~n 2' That said certificates shall be sig~ned by the ~ayor of the city, shall be attested by the Clerk, and shall be endorsed by the City Attorney, and shall have impressed thereon the efficial seal of the City of Delray Beach. Interest accruing on said certificates on and prior to maturity shall be evidenced by coupons to be thereto attached, which coupons shall be signed by said Mayor and Clerk by their facsimile signatures and said officials by the execution of said certificates shall adopt as and for their ewn proper signatures their respective facsimile signatures on said coupons. -6- Sectio.___~n ~. That the certificates herein authorized shall not be payable from or charged upon any funds of the City of Delray Beach, other than the revenues to be derived from the operation of the system as hereinafter provided, nor shall the City of Delray Beach ever be subject to any pecuniary liability thereon. No holder or holders of any of the certificates shall ever have the right to compel any exercise of the taxing power of the City of Delray Beach to pay any of the certificates or interest thereon or to enforce payment thereof against any property of the city and such certifi- cates shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the city, other than the revenues received from the operation of the system. Section 6. That the certificates and the coupons to be thereto attached and the endorsement to appear on the back thereof shall be in substantially the following form: (Form of Bond) UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF PALM BEACH CITY OF DELRAY BEACH WATER RE'~ENUE CERTIFICATE, SERIES 1957 Number $1,000 KNOW ALL MEN BY THESE PRESENTS that the City of Delray Beach, a duly organized and existing municipal corporation in Palm Beach County, Florida, for value received, hereby promises to pay to bearer, in the manner and from the funds hereinafter provided, the sum of One Thousand Dollars ($1,000) on the first day of June, 19~, and to pay interest on said sum from the date hereof at the rate of ......... per cent (.__..%) per annum until paid, payable December 1, 1957 and semi-annually thereafter on the first -7- days of June and December of each year, interest falling due on and prior to maturity being payable upon presentation and surrender of the annexed interest coupons as the same severally become due. Both principal of and interest on this bond are payable in lawful money of the United States of America at The Chase Manhattan Bank in the City of New York, New York. This certificate is one of an issue in the amount of $1,378,000, all of like date, tenor and effect, except as to (interest rate,) maturity and option of redemption, issued by the City of Delray Beach, for the purpose of refunding outstanding certificates of the city secured by pledge of water revenues and for the purpose of paying the cost of improving and extending the water- works plant and system of said city. Said certificates are payable only from the income and revenues to be derived from the operation of said plant and system, including all future additions and improve- ments thereto, a portion of which revenues has been set aside as a special fund identified as the "City of Delray Beach Water Revenue Certificates, Series 1957, Interest and Sinking Fund," and irrevocably pledged to the payment of principal of and interest on said certificates. This certificate does not constitute an indebtedness of the City of Delray Beach within the meaning of any constitutional or statutory limitation of indebtedness, is not payable from or a charge upon any funds of the City of Delray Beach other than said "City of Delray Beach Water Revenue Certificates, Series 1957, Interest and Sinking Fund," and the City of Delray Beach shall not be subject to any pecuniary liability thereon. No holder or holders of this certificate shall ever have the right to compel any exercise of the taxing power of the City of Delray Beach to pay this certificate or interest thereon nor to enforce payment thereof against any property of the City of Delray Beach, nor shall this certificate constitute a charge, lien or encumbrance, legal or equitable, upon any property of said city. -8- Certificates numbered 235 to 1378, inclusive, of the issue of which this is one are callable for redemption in inverse numerical order on Jane 1, 1968 and on any interest payment date thereafter at the principal amount thereof plus accrued interest to the date fixed for redemption and a premium of $30.00 for each certificate so redeemed on or prior to December 1, 1971, $25.00 for each certificate so redeemed thereafter on or prior to December 1, 1975, $20.00 for each certificate so redeemed thereafter on or prior to December 1, 1979, $15.00 for each certificate so redeemed there- after on or prior to December 1, 1983, $10.00 for each certificate so redeemed thereafter on or prior to December 1, 1987, and there- after without premium. Notice of redemption is to be given not less than thirty days prior to the date fixed for redemption by the filing of an appropriate notice with the above named paying agent bank and the publication of an appropriate notice one time in a financial newspaper or Journal published in the City of New York, New York. The City of Delray Beach has covenanted and hereby covenants and agrees at all times while this certificate, or any certificate of the issue of which it is a part, is outstanding and unpaid to fix and maintain such rates for services and water fur- nished by said plant and system as will be fully sufficient to provide for the payment of the interest on and principal of all of said certificates as interest and principal become due, to create a proper fund therefor, to provide for the payment of the expenses of administering and operating said plant and system and for main- taining said plant and system in good repair and working order. For a more particular statement of the covenants and provisions securing the certificates, reference is made to the ordinance adopted by the Council of the City of Delray Beach on July ~h , 1957, authorizing this issue. It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this certificate have existed, have happened and have been performed in due time, form and manner as required by law. This certificate, with the 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: (a) Title to this certificate and to the annexed interest coupons, may be transferred by delivery in the same manner as a negotiable instrument payable to bearer; and (b) Any person in possession of this certificate 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 anyone who shall purchase the same for value (present or antecedent) without notice of prior defenses or equities or claims of ownership enforceable against his transferror; every prior taker or owner of this certificate and of the annexed interest coupons, waives and renounces 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 or of the interest coupons hereto appertaining, as the absolute owner thereof for all purposes, without being affected by any notice to the contrary. -10- IN WITNESS WHEREOF, the City of Delray Beach, Florida, acting through its City Council has caused this certificate to be signed by its Mayor, attested by its Clerk, and approved by its City Attorney, under the official seal of said city, and has caused the interest coupons hereto attached to be executed by the facsimile signatures of said Mayor and Clerk, all as of this first day of June, 1957. .... MaYor, ~ity"~'f Delray B~aJh Attest: ' '~'ler~', city of"Delray Approved as to form, language and execution. Ci Attorney (Fox~mof Coupon) Number .... $ On the first day of ..... , 19.._, unless the hereinafter mentioned certificate is then optional for redemption and has been theretofore duly called for redemption and provision for the redemption thereof duly made, the City of Delray Beach, Florida, will pay to bearer the sum of Dollars ($ ..... ) in the manner and out of the funds described in the certificate to which this coupon is attached, in lawful money of the United States of America at The Chase Manhattan Bank in the City of New York, New York, being the interest to that amount then due on its Water Revenue Certificate, Series 1957, dated June 1, 1957, and numbered .. .... MayO .......... Attestc .... (Form of Validation Certificate) Validated and confirmed by a decree of the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, rendered on the day of ........ , 1957. Cl~rk of the circui't"c0ur't% ' Palm Beach County, Florida Section ~. That from and after the delivery of any certificate pursuant to the provisions of this ordinance, the system shall be operated on the basis of a fiscal year commencing on October 1 of each year and ending on the last day of September of the next succeeding year, and on that basis all income and revenues of every nature derived from the operation of the system shall be set aside into a separate and special fund, which fund is herein- after sometimes referred to as the "Revenue Fund". There shall first be paid from the moneys in the Revenue Fund from time to time as needed the reasonable and necessary expenses of operating and maintaining the system. Said expenses are hereby defined as those expenses reasonably incurred in the normal operation of the system and do not include the cost of additions, extensions or other capital improvements. From the money in the Revenue Fund not expended for the reasonable and necessary cost of operating and maintaining the system as above provided, there shall be paid into a fund to be known as the "City of Delray Beach Water Revenue Certificates, Series 1957, Interest and Sinking Fund" (herein referred to as the "Bond Fund") such amount of the remaining gross revenues in each fiscal year as will be fully sufficient to pay all principal ~nd interest falling due in such fiscal year payable therefrom. In addition there shall be paid into the Bond Fund all accrued interest received from the purchaser of the certificates at the time of the delivery of the certificates. -12- In addition to the amounts so required to be paid into the Bond Fund, there shall be paid into said fund as a reserve, all money held by the city as a reserve for payment of principal of and interest on the certificates herein authorized to be refunded at the time of the delivery of the certificates herein authorized, ~nd in ~ddition such amount in each fiscal year as will cause the reserve to be built up in a period of sixty months following the issuance of the certificates, to an amount equal to the largest amount of principal and interest which will be payable from the Bond Fund in any future twelve months' period. The reserve comprising such surplus shall be maintained for the purpose of paying principal and interest payable from the Bond Fund falling due in any year as to which there would otherwise be default. If at any time it is necessary to use moneys in said reserve for the payment of interest or principal, the moneys so used shall be replaced from the first revenues thereafter received from the operation of the system not hereinabove required to be used for maintenance and operation expenses and for the payment of current principal and interest, it being the intention hereof that there shall be maintained in the Bond Fund, in addition to the amount required for payments during the current fiscal year an a~ount sufficient to pay the largest amount of principal and interest pay&ble from the Bond Fund in any future twelve months, period as aforesaid. The money in the reserve m~y, in the discretion of the Council, be invested in direct obligations of the United States of America, m~turing not later than five years from date of purchase, in which event the obligations so acquired shall be held to the credit of the Bond Fund, and in the event the money in the reserve which has been so invested shall be needed for the payment of principal or interest, the bank holding the Bond Fund shall, without specific instructions from the city, liquidate as many of the obligations so held as ~ay be necessary and have the proceeds of such liquidation applied to the payment o£ principal and interest. -13- If in any fiscal year the city shall for any reason fail to pay into the Bond Fund the full amount above stipulated, then an amount equal to such deficiency shall be set apart and paid into said fund from the first available revenues in the following year or years and such payments shall be in addition to the amounts here- inabove provided to be so paid into said fund during such succeeding year or years. The payments herein required to be made into the Bond Fund shall be made monthly in such amounts as will assure the existence of money in said fund fully sufficient to pay principal and interest as they fall due, it being recognized that initially payments into the Bond Fund will have to be greater than proportionate monthly amounts in order to provide for the payment of interest falling due on December 1 of the fiscal year and principal and interest falling due on June 1 of the fiscal year. Ail payments into the Bond Fund shall be made monthly as herein provided by the Treasurer to the First National Bank of Delra~ Beach in the City of ... Delra.y Beach , .... F~.qr...i.,da .... and shall be held by said bank in a separate fund as a trust account solely for the purpose of paying principal of and interest and redemption premiums on the certificates herein authorized. Said trust fund, except when invested as heretnabove provided, shall be continually secured to the fullest extent permitted or required by the banking laws of the State of Florida for the securing of public funds, and shall be irrevocable and not withdrawable by anyone for any purpose other than for the payment of principal of and interest and redemption premiums on said bonds. It shall be the duty of said bank on May 15 and November 15 of each year to transmit from the money in said fund to the paying agent bank such amount as may be needed for the payment of interest, or principal and interest, falling due on the next succeeding June i or December l, as the case may be. From the money in the Revenue Fund not expended for the cost of operating and maintaining the system in each fiscal year as above provided, and not paid into the Bond Fund in such fiscal year as above provided, there shall be paid in each fiscal year into a fund to be known as the "Renewal and Replacement Fund" a sum equivalent to five per cent of the gross revenues derived from the operation of the system in the preceding fiscal year. No payment need be made into the Renewal and Replacement Fund at any time when the amount therein is $50,000 or more. Money in said fund shall be used to pay the cost of making renewals, exten- sions, replacements or improvements to the system when the making thereof has been recommended by the engineer who is at the time serving as the consulting engineer for the system. Money in said fund shall also be used for the purpose of paying principal or interest, or both, payable from the Bond Fund falling due in any year for the payment of which there is not money in the Bond Fund, including the reserve there- in, and as to which there would otherwise be default. /he money in the Renewal and Replacement Fund may in the discretion of 'the Council be invested in direct obligations of the United States of America maturing not later than five years from date of purchase, in which event the obligations so acquired shall be held to the credit of said fund. In the event money so invested is needed for the purposes for which the fund is herein created such investment shall be liquidated to the extent necessary. When the amount in the Bond Fund, including the reserve, and in the Renewal and Replacement Fund shall in the -15- aggre§ate be equal to the amount of all principal and interest to maturity or all principal and interest to the next redemp- tion date plus redemption premiums then applicable on all certificates payable from the Bond Fund which remain outstanding, further payments into said funds may be discontinued, and the money in said funds shall be used for retirement or redemp- tion of such outstandinG certificates. All payments into the Revenue Fund and into the Renewal and Replacement Fund shall be made to the Delray Beach NatioDm/ Bank of Delray Beach, Florida, or such other bank or banks as may be desi~nated from time to time by the Council of the City of Delray Beach, provided that any such hank be a member of the Federal Deposit Insurance Corporation and that all such funds so deposited be secured as required for municipal funds under the laws of the State of Florida. Such funds shall be held by the said bank or banks in separate ac- counts to be paid out only for the purposes and under the circumstances herein provided. It is recognized that the City now has an a§reement in effect with certain subdividers; to wit: Tropical Isle Development Company and Ridge Construction Company of Palm Beach, coverinG the installation of water distribution facili- ties in subdivisions heretofore laid out, under which the City has agreed to retmJxtrse such ~Abdividers for the cost of the extension of the water main from the existin§ city system into such subdivision; and paying to each such subdivider from the revenues received by the City from the sale of water in each subdivision, for a period of ten (10) years from the start of water services in each subdivision, portions of the revenues so received from consumers in such subdivision. Nothing in this section shall be so construed as to prevent the makinG of such reimbursement to such subdivider from the revenues so received from the consumers in each said subdivision, before any remaininG revenues received from such consumers are paid into the Revenue Fund herein created. - 1Sa- After all payments above required have been made in each fiscal year, and any deficiencies which may exist from prior years have been remedied, the money rematnin9 in the Revenue Fund shall be regarded as surplus and may be used for any lawful corporate purpose, includin9 the retirement or redemption prior to maturity of any certificates lmayable from the Bond Fund or as security pledged for any other obli§a- ti=ns which the city may hereafter issue for any purpose. Section 8. That so lon9 as any of the certificates herein authorized remains outstanding, the city will maintain and carry, for the benefit of the holders of the certificates insurance on the physical properties of the system of the kinds and in the amounts normally carried by private companies engaged in the opera- tion of similar properties. The city will also carry adequate public - 5b- liability insurance. Ail moneys received for losses under any such insurance policies, except public liability policies, are hereby pledged by the City of Delray Beach as security for the certifi- cates payable from the Bond Fund until and unless such proceeds are paid out in making good the loss or damage in respect of which such proceeds are received, either by repairing the property damaged or replacing the property destroyed, and adequate provision for making good such loss and damage made within ninety days from the date of the loss. The payment of premiums for all insurance policies required under the provisions of this section shall be considered to be maintenance and operation expenses. Section 9. That the city covenants and agrees that so long as any of the certificates remains outstanding proper boo~s of record and account will be kept by the city, separate and apart from all other records and accounts, showing complete and correct entries of all transactions relating to the system, and that the holders of any of the certificates, or any duly authorized agent or agents of such holders, shall have the right at all reasonable times to inspect all records, accounts and data relating thereto and to inspect the system and all properties comprising the system. The city further agrees that it will within sixty days following the close of each fiscal year cause an audit of such books and accounts to be made by an independent firm of certified public accountants, showing the receipts and disbursements for account of the system, and th_~_t such audit will be available for inspection by the holder of any of the certificates. Each such audit in addition to whatever matters may be thought proper by the accountant to be included therein, shall include the following: 1. A statement in detail of the income and expenditures of the system for such fiscal year. 2. A balance sheet as of the end of such fiscal year. -16- 3. The accountant,s comment regarding the manner in which and extent to which the city has carried out the requirements of this ordinance, and the accountant,s recommendation for any change or improvement in the operation of the system. 4. A list of the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the expiration date of the policy. 5. The number of metered water customers, the number of ur~netered water customers, if any, the number of hydrants connected to the system, and the n~uber of applications for water service on hand existing at the end of the year. 6. The number of gallons of water shown to have passed through the master meter of the city during such fiscal year, the number of gallons of water billed, the estimated number of gallons of water used for flushing mains and for extinguishing fires, and the number of gallons of water unaccounted for. 7. A statement showing the balances existing at the beginning and end of the fiscal year in the Bond Fund, including the reserve therein, together with all deposits and withdrawals made during said fiscal year and the monthly deposit requirements for said fund during the next succeeding fiscal year. 8. The total water billings for such fiscal year and the average monthly billing per customer. 9. The schedules of rates and charges imposed for water service. The city agrees to furnish a copy of each such audit to the holder of any of the certificates at his request after the close of each fiscal year, and that any such holder shall have the right to discuss with the accountant making the audit the contents of the audit and to ask for such additional information as he may reasonably -17- require. The city further agrees that it will furnish the original purchaser of the certificates and any holder, upon request, monthly operating reports of the system in reasonable detail, and that it will mail each such report to the last known address of such purchaser or holder not later than fifteen days after the close of the month covered thereby. Section 10. That the City of Delray Beach covenants and agrees with the holder or holders of any of said certificates that it will faithfully and punctually perform all duties with respect to the system required by the laws of the State of Florida, and that it will fix and collect sufficient rates and charges for water and services furnished by the system and ~will segregate and apply the income derived therefrom in the manner provided by this ordinance so that said revenues will at all times be fully sufficient to operate and maintain the system and to pay principal of and interest on said certificates promptly as each falls due. The City of Delray Beach further irrevocably covenants, binds and obligates itself not to sell, lease, encumber or dispose of the system or any substantial part thereof until all of the certificates herein authorized have been paid in full as to both principal and interest, and further covenants and agrees with the holders of said certificates to main- tain said system in good condition and to maintain a continuous and sufficient supply of water for distribution by the system and to charge and collect such rates and charges for water and service rendered thereby to all consumers and users, including the City of Delray Beach so that the revenues derived therefrom will be sufficient at all times to carry out fully the provisions of this or dinanc e. The city further covenants and agrees that every officer, agent or employee of the city having custody or control of any of the moneys derived from the operation of the system shall be bonded -18- by a responsible corporate surety in an amount not less than the greatest ~mount reasonably anticipated to be within the custoc~y or control of such officer, agent or employee at any one time. The premiums on such surety bond~ shall be paid by the city as reasonable and necessary expense of operation. That the city agrees that if any water user shall become delinquent for more than sixty days in the payment of water charges, it will promptly shut off the supply of water to such user and will not resume such supply until all delinquent charges and penalties, including a reconnection charge of not less than $1.50, have been paid. A user shall be deemed delinquent if he has not paid the full amount of any hill within thirty days after it shall have been mailed to him. Section t2. That the certificates herein authorized shall] enjoy complete parity of lien on the revenues of the system despite the fact that any of sai~ ~r~t£1cat~ mn~,' be delivered at an earlier date than rely other of said certi£tcates. The City of Delray Beach expressly covenants mad aDrees that it will issue no other certificates or obliiratic~s of any kind or nature payable from or enjoying a lien on the revenues o£ the system prior to or on a parity with the certificates herein authorized. The provisions o£ the above paraDraph are subject to the exception that if prior to the payment of the certificates herein authorized, it shall be found desirable to refund any certificate payable from the Bond Fund, said certificates or may part thereof may be refunded with the consent of the holders thereof (except that as to matured certificates or certi£icates which have been properly called for redemption, such consent shall not be necessary) and the refundtnD obligations so issued shall enjoy complete eq~ltty of lien with the portion of tlae certificates which is not re£unded, if any there be, and the reffundtng obligations shall continue to enjoy - 19- whatever priority of lien over subsequent issues may have been enjoyed by the certificates refunded, provided however, that if only a portion of the outstanding certificates payable from the Bond Fund is so refunded, no refunding certificate may bear interest at a rate higher or mature at a date earlier than the certificate refunded thereby without the consent of the holders of the unrefunded portion of said certificates. The provisions of the second above paragraph are subject to the further~exception that additional obligations may also be issued on a parity with the certificates herein authorized pursuant to the following conditions: Ca) The average annual net revenues of the system for the two completed fiscal years immediately preceding the issuance of the additional obligations must have been equal to one and one-half times the highest combined interest and principal requirements for any succeeding fiscal year on all certificates then outstanding payable from the revenues of the system and on the obligations so proposed to be issued. "Net revenues" for the purposes of this paragraph and the other paragraphs of this section shall be understood to refer to the gross revenues of the system remaining after there have been deducted therefrom the reasonable expenses of operating and main- taining the system. If during the aforesaid two completed fiscal years rates imposed for water or water services shall have been increased the engineer who is serving as the consulting engineer for the system may determine the additional net revenues resulting from such rate increase for the period it shall have been in effect and may add to the net revenues determined as above prescribed seventy- five per cent C75%) of the additional net revenues which in his opinion, based on such determination, would have been derived from the operation of the system during the part of said two completed fiscal years prior to the making of such rate increase, had such increase been in effect during such part of said two completed fiscal years. -20- If the average annual net revenues of the system for the two completed fiscal years immediately preceding the issuance of the additional obligations, adjusted as above provided, shall have been equal to one and one-fifth times the highest combined interest and principal requirements for any succeeding fiscal year on all certificates then outstanding and the obligations so proposed robe issued, there may also be added to the net revenues of the system for the two completed fiscal years immediately preceding, for purposes of the above computation, seventy-five per cent (75%) of the additional net revenues estimated by the aforesaid engineer to be received during the first two completed fiscal years following the placing in operation of the additional facilities to be acquired with the proceeds of such additional obligations, by reason of t he operation of such additional facilities. If such additional obli- gations are issued in whole or in pert for the acquisition of sanitary sewer facilities and the net revenues to be derived from the operation of the city's sanitary sewer system shall not have been theretofore pledged or hypothecated the engineer may for purposes of this paragraph consider all net revenues to be derived from the city's sanitary sewer system as so improved or extended to be net revenues received "by reason of the operation of such addi- tional facilities" within the meaning of the foregoing part of this paragraph. If there shall be pledged to the payment of such addi- tional obligations revenues to be derived by the city from the imposition of a utilities service tax on the sale or purchase of utility services in the city (other then the sale or purchase of water or water services) there m~y also be added to the net revenues of the system for the two completed fiscal years immediately preceding the issuance of the additional obligations for the purposes of the second above paragraph the net revenues derived by the city from the -21- proceeds of such utilities service tax during said two fiscal years. If only a part of such utilities service tax proceeds is so pledged, then there may be added to the aforesaid net revenues the net revenues derived by the city from the proceeds of the part of said utilities service tax during said two fiscal years which is to be so pledged to the payment of such additional obligations. (b) The payments required to be made into the Bond Fund including the reserve therein must be current. (c) The additional obligations must be payable as to principal on June 1 of each year in which principal falls due and must be payable as to interest on June 1 and December 1 of each year. (d) The proceeds of the additional obligations must be used solely for the making of improvements, extensions, renewals, replacements or repairs to the system or to the city, s sanitary sewer collection, treatment and disposal system, or both. Sec...tion 13. That so far as it legally may, the City of Delray Beach covenants and agrees for the protection and security of the certificates herein authorized: (a) That it will not grant a franchise to any competing water system to operate in the City of Delray Beach until all certificates issued pursuant to the provisions of this ordinance have been retired; (b) That so long as any of the certificates herein authorized remains outstanding the city will maintain its corporate identity, will make no attempt to cause its corporate existence to be abolished, and will resist all attempts by other municipal corporations to annex all or any part of the territory now or here- after in the city or served by the system. -22- Sect.i.on 14. That the City of Delray Beach hereby covenants and agrees that whenever and to the extent that it may levy any tax on or measured by the purchase of water distributed or sold by the system, the proceeds of such tax shall he considered part of the revenues of the system for the purposes of this ordinance, and such proceeds are hereby made subject to the same pledge herein made as other revenues o£ the system. Section 15. That the certificates herein authorized shall be sold in such manner and at such time or times as may hereafter be determined by resolution of the City Council. So much of the proceeds of sale as represents acc~-ued interest shall at the time of the delivery of the certificates to such purchaser he paid into the Bond Fund. $384,000 of the proceeds of the sale of the certificates, together with money taken from other city funds legally available for such purpose in an amount equal to the interest and redemption premiums due on December 1, 1957 on the certificates herein .authorized to he refunded, shall simultaneously with the delivery of the certificates to the purchasers he transferred to The Chase ~[anhattan Bank to he held irrevocably in trust for and used solely for the payment of principal, interest and redemption premiums due December 1, 1957 on the certificates herein authorized to he refunded. So much of the remainder of the proceeds of sale as is not required for the payment of incidental fiscal, legal and engineering expenses which are due and owing at the time of the issuance of the certificates shall he deposited in a special trust account in a hank or banks in the City of Delray Beach, Florida. Said hank shall hold and dispose of said pro- ceeds in accordance with the terms of a letter which shall he directed to said hank and executed by the Mayor and City Clerk of the City of Delray Beach and approved by the original purchaser of the certificate.,. - 23 - Section 16. That the provisions of this ordinance shall constitute a contract between the City of Delray Beach and the holder or holders of the certificates herein authorized, and after the issuance of any of said certificates, no change, variation or alteration of any kind in the provisions of this ordinance shall be made until all of the certificates have been paid in full except as provided in Section 18 hereof. Sectio_n 17. That in addition to all other rights enjoyed by the holders of the certificates herein authorized, such holders shall have the right by mandamus or other appropriate suit or action in any court of competent jurisdiction to enforce his or their rights against the City of Delray Beach, the governing body thereof, and any and all officers and agents thereof, including but without limitation, the right to require said city and its governing body to fix and collect rates and charges fully adequate to carry out all of the provisions and agreements in this ordinance contained. Sec.tion 18. That the holders of seventy-five per cent (75%) in principal amount of the certificates herein authorized at any time outstanding ~not including in any case any certificates which may then be held or owned by or for the account of the city, but including such refunding certificates as may be issued for the purpose of refunding any of the certificates herein authorized if such refunding certificates are not owned by the city), shall have the right from time to time to consent to and approve the adoption by the city of an ordinance or ordinances modifying or amending any of the terms or provisions contained in this ordinance, provided, however, that this ordinance may not be so modified or amended in such manner as to: (a) Make any change in the maturity of the certificates. (b) Make any change in the rate of interest borne by any of the certificates. (c) Reduce the amount of the principal or redemption premium payable on any certificate. (d) Modify the terms of payment of principal or of interest or of redemption premiums on the certificates or any of them or impose any conditions with respect to such payment. [e) Affect the rights of the holders of fewer than all of the certificates then outstanding. Whenever the city shall propose to amend or modify this ordinance under the provisions of this section, it shall cause notice of the proposed amendment to be published one time in a financial newspaper or journal published in the City of New York, New York, or Chicago, Illinois. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy of the proposed amendatory ordinance is on file in the office of the City Clerk for public inspection. Whenever at any time within one year from the date of the publication of said notice there shall be filed in the office of said City Clerk an instrument or instruments executed by the holders of at least seventy-five per cent (75%) in aggregate principal amount of the certificates then outstanding as in this section defined, which instrument or instruments shall refer to the proposed amendatory ordinance described in said notice and shall specifically consent to and approve the adoption thereof, thereupon, but not othe~ise, the council may adopt such amendatory ordinance and such ordinance shall become effective. If the holders of at least seventy-five per cent (75%) in aggregate principal amount of the certificates outstanding as in this section defined, at the time of the adoption of such amendatory ordinance, or the predecessors in title of such holders, shall have consented to and approved the adoption thereof as herein provided, no holder of any certificate whether or not such holder shall have · Il consented to or shall have revoked any consent as in this section provided, shall have any right or interest to object to the adoption of such amendatory ordinance or to object to any of the terms or provisions therein contained or to the operation thereof or to enjoin or restrain the city from taking any action pursuant to the provisions thereof. Any consent given by the holder of a certificate pursuant to the provisions of this section shall be irrevocable for a period of six months from the date of the publication of the notice above provided for and shall be conclusive and binding upon all future holders of the same certificate duming such period. Such consent may be revoked at any time after six months from the date of the publication of such notice by the holder who gave such consent or by a successor in title by filing notice of such revocation with the City Clerk, but such revocation shall not be effective if the holders of seventy-five per cent (75%) in aggregate principal amount of the certificates outstanding as in this section defined have, prior to the attempted revocation, consented to and approved the amendatory ordinance referred to in such revocation. The fact and date of the execution of any instrument under the provisions of this section may be proved by the certificate of any officer in any jurisdiction who by the laws thereof is authorized to take acknowledgments of deeds within such jurisdic- tion, that the person signing such instrument acknowledged before him the execution thereof, or may be proved by an affidavit of a witness to such execution sworn to before such officer. The amount and numbers of the certificates held by any person executing such instrument and the date of his holding the same may be proved by a certificate executed by any responsible bank or trust company showing that on the date therein mentioned such person had on deposit with such bank or trust company the certifi- cates described in such certificate. -26- Section ..1~9. That. Harry T.j Newett~ _ .. · · ....... , as attorney for the City of Delray Beach, 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 City Clerk are hereby authorized to sign any pleadings in such proceedings for and on behalf of the co~ission of the City of Delray Beach. Section 20. That if any section, paragraph, clause or provision of this ordinance shall be held to be invalid for any reason, such invalidity shall not affect the validity or enforce- ability of any of the remaining provisions hereof. Section 21. That all ordinances, resolutions or orders or parts thereof in conflict herewith are to the extent of such con- flict hereby repealed. Section 22. That for the immediate preservation of the public peace, property, health and safety, and because of the urgent need of the City of Delray Beach and its inhabitants for the improvements to be made with the proceeds of the certificates herein authorized, it is hereby found and declared that an emergency exists and that therefore this ordinance shall become immediately effective upon its adoption at the same meeting at which it was introduced. Adopted and approved _ . ~Jul~ ~.th~ ............. , 19~?. Attest: -27 - The foregoing ordinance and the forms of revenue certifi- cate and interest coupon therein contained are hereby approved by me as to form, language and execution this 5th day of ~u..ly. , 1957. /CI ty ktt~orney ..... (Other business not pertinent to the above appears in the minutes of the meeting.) Pursuant to motion duly made and carried the council adjourned. Mayor Attest: -28- STATE OF FLORIDA ) ) COU~TY OF PALM BEACH ) I, ROBERT ~D. WORTHING , do hereby certify that I a_m the duly qualified and acting City Clerk of the City of Delray Beach, Palm Beach County, Florida. I further certify that the above and foregoing constitutes a true and correct copy of the minutes of a meeting of the members of said city held on .July .Sth , 1957, and of an ordinance adopted at said meeting, as said m~nutes and ordinance are officially of record in my possession. .IN WITN ~ES.S WHEREOF, I have hereunto subscribed my official signature and impressed hereon the official seal of the City of Delray Beach this 6~th day of ~. July ..... , 1957. JAM:al 6~28~57 -29- This is a copy of the first publicati~u of Your legal adver- y . e y o ' ~please indicate on the margin and return.to us at once in time for the next publica- tion on ~7 ~-~ , 195 7 . This publication is scheduled to run ~ times ~he total cost of which will b~ ~ ~ ~O Affidavit will be mailed to you immediately following the last publication. THE DELRAY BEACH NEWS ~o-t~ state e~ Florida or by' lty o~ Circuit of the ~everal pl-Ol~erty owners, taxpa~,ers, c~t/zens and oth~ hav~ or c~imtn$ any F~t, title or in.rest in to ~ affected b~ the issuance of ~td certlflcat~ or. to ~ ~fIec~d in ~ny there., ~ and~eF are ~h here~ qUtre~ t~ ~ow cau~ ,if ~y ~ before this cou~ on the S~ d~ Augur, I~7. at 9:30 o'clock A.M. at Courmou~e In ~o City of West Palm ~a~. ~lorld~ why ~o prayer~ of ~tition ~ould not ~, granted .~d why the rroceedmgs .~r said ce~fl~a and said- certificates when issUed pursuit thereto sho~d not be v~idat~ ~d con- firmed as ~herein prayed. AND IT IS FURTHER ORDERED, 'ADJUDGED AND DECREED ~at Clerk of ~is court be and h6 ~ hereby required to ~lve n~tWe of such ~ar~g ~y causing a c~ry of e m~ Beach si -to . tion In ~id city, OaC~ ~ ~t1~ ~r lnte~ ~ said city or ~o gblo pro~rW therein, shall be o~side~d ~ and ~ro made parties deiend~t to this ~g. ~d that this cou~ ~ve Juri~ction of ~em to the ,~t as Ii named as d~endants ~ said ~on a~ ~rsonally se~ wi~ e~ in th~s caul. DONE AND ORD~D at West Palm ~ach. ~o~, th~, 17~ ~ of July. ~OS. S. ~ITE C~u~t Ju~ ~ublish July 18. 25; Aug. ~, 1957. City and County of New York, s.s.:- ~ VIRGINIA COZZOLINO, being duly sworn, says that she (]ITY ,~ the Advertising Clerk of THE BONO BUYER, a daily and weekly newspaper printed and published at 67 Pearl Street in the City of New York, County of New York, State of New York; and the notice, of which the an- hexed is a printed copy, was regularly published in Water said THE BONO BUYER on /~ _~ / SEALED B{D~ll be receimjl~l '~y the City Council of the City o ') w~ch time and l)lad~ all bids 'bill be publicly olo~ned and read, for $1,- ~ .... ' ~,000 Water Revenue Ce~cates, Series ~5~e City of Delray Beach, Nda, dasd June 1, 1957,"~nd maturing ~~une 1, as follows: be/o~ me C ~aro~ "~' Yearof Yearof ~ ,~earof Subsc~bed and swo~ to 1959 ~0~ 190S 26,0~ 39,00~ 1986. 58,000 . 0 . ]000 x969 .... ....4 ,000 9s7.sm,ooo 1~1...'. 19,000 1~i 1979 .... ~42,000 1988. 63,000 '.~.~2 .... 20,000 1~~ 1980. ~ ~r~ 44,000 2989. 66,000 1~ .... ~1,000 1972 .... 31,000 1981. f? - 46,~ 1990 69,000 ~{i~ .... 28,000 ~974. 34,000~>~983 .... ~1,000 1992. 76,000~ 1~6...~ 24,000 1975 .... 36,0~ 1984... 53,000 [~,~ .... . -a ~nomination $1,000; coupon certificates; principal and semi-annua ' / ~h~r~t (June and December 1) payable a~ The Chase Manhattan Bank, in FRANCES M. PANDOLFO. Notary Public, State of New Yo~ ~ Gity o~ New York, New York. No. 3~3008515 ~e certificates were valida~d by decree of ~he Circuit Court of P~lm Qua~fla in ~u ~unty Ce~ficate in N. Y. Co.  h County, Florida, rendered on August 8, 1957. Tern expir~ March 30, 1959 ~6 Certificates of. this issue which mature after June 1, 1968 shall be call- e~ for redemption in inverse numerical order on June 1, 1968 and on any nd'est payment date there~ter at the principal amount thereof plus accrued ,es~ to tbe Sate fixes for redemption and a premium of $30.00 for each ~aca~ so redeemed on or prior to December 1, 1971, $25.00 for each 'certiB- nd so redeemed thereafter on or prior to December 1, 19~5, $20.00 ~°r eaca ~ ficate so redeemed thereafter on or prior to December 1, certificate so redeemed thereafter on or m~¢-- .... ~t lach certificate so redeemed thereafter - ~0 ther:' fter without premium. ~ ~ ~ ~e Bidders are requested to name the interest rate or rates, not exceeding ~ g ~ ,'~$ per annum, in multiples of ~ or 1/10 of 1f and each bidder must spec~y ~ ~. n h~ b~ the amount and the maturities of the certificates of each rate. All ~ ~ ;'.. '~ca~s maturing on the same ~te must bear interest at the same rate.. ~ ~ ~ ~ d for less than 97% and accrued interest or for less than all of the cer- ~ ~ ~ ~ ~ ' tibet ~s offered will be entertained. The certificates will be awarded to the ~ ~ b~ offering to purchase them at the lowest interest cost to the City, ~ ~ ueh co~ to be determined by adding the total amount of discount bid to ~ ~ ~ ~r d~ucting the ~tal amount of premium bid from) the aggregate amount '-~e' in~reStmaturities.Up°n all of the certificates from June 1, 1957, until their respec- ~ ~ ~. ~ ~ ~ ~ ~--'~] ~ach bid must be on a form to be furnished by the undersized, enclosed ~ ~ ~ %2~M~envel°pemarked"Pr°p°salf°rCertificates"andmustbeacc°m' ~ ~ ~ ~ ~ ,~ ~ a certified o~ bank ea~hier'~ or ~r~asurer's ebeek for ggg,~O0 upon ~ ~ .~ ~ o' ~ . ~ ~ xo~rs~ed bank or ~us~ eompanT, paTable uneondigionall7 ~o ~he order of ~-~ Ci~ of ~elra~ ~eaeh, ~lorida, on whieh no in~resg will be allowed. ~ ~ 4~ o~ ~ejeo~i~ of bids ~11 be made on the dste above s~ated for ~he ~ ~ e~p~ of bids, and the eheeks of unsuccessful bidders will be ~e~urned immed- ~ ~. ~ check ~ the successful bidder will be held uneashed as security ~ ~ ar ~e ~rformanc¢ of his bid, but in the event that the successful bidder ~ ~ ~ ~ ~ comply with the terms of his bid the check may then be cashed ~ -~ ~eds ~ereof re~ined as and for full liquidated damages. ~ ~ ~qu~li~ed approving opinion of Messrs. Chapman and Cutlo- '- Delra¥ Beach Journal Published Phone 5274 H/eetly P.O. Box 532 Delray Beach, Palm Beach Counfy, Florlda. VERIFICATION OF LEGAL PUBLICATION Herew;fh copy of legal nor[ce re: T~ CITY O~ D~LRAY ]BEACtt, [8SU~CE OF S1~37~0.~ WATER SERIES REVERE 19~ OF DELRAY BEACH. OF ~h~ch firs+ a~peare~ i. the JOURNAL Thls noHce is scheduled fo appear ...... /. ...... limes. If any error is nof~ pl~se call us before ~e nex~ publicaf~on dale. The cosf in fhJs Jnsfance will be~.~/.. For your information, verification and correction purposes, city Cle~ la end fo~' the ]Beach THIS 1S NOT A BILL B. J. VAN INGEN & Co, iNC. MUNICIPAL bONDS DU PONT BUILDING ROBERT H. COOK NEW YORK ViCE PRESIDENT MIAMI 32. FLORIDA CHICAGO July ll, 1~57 ~hmp~n & Outlet, 111 West Monroe Street Chtc~o, Illinois Re~ ~1~378,~ Delr~ B~, Florida Wat~ l~e C~ti~i~tes itt~ti on~ J.os~ ~tt~ Pleas~ fi~ inclos~ ~letely exe~t~ co~ ~ ~e re~lution per~i~ ~ ~e ~e ls~e. ~ts resolution ts ~l~ in ~e s~ ~er in ~l~ ~ origi~l~ ~itted it, ~ the ffell~ exciting. (1) Page 1}, I~es~t t~, ~~ (2) A11 off ~e fill-i~ ~ pages (3) It ~s ~cee~ to t~e ~ 1~ ~d a ~ ~ ~s ~d~, ~~ 1~. ([;) Page 19~ ~s r~opi~ ~ ~f~t co~ectien ~ge. (~)Page 2~ ~ ~ ~ l~lude ~ ~s in ~e City of Delr~ ~ ~an ~e ~e list~ ~ges ~ere ~e ~ o~s. ~e ~ld a~late ~ c~leti~ ~e necesa~ ~p~s flor ~ll~tion ~ce~i~s V~ truly ~s, B. 3. VAN II~EN & CO. Inc.