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09-11-72 167 SEPTEMBER I1, 19~72. A regular meeting of the City Council of the City of Delray Beach, Florida, was held in the Council Chambers at 7:30 P.M., Monday, September 11, 1972, with Mayor Jame~s H. Scheifley presiding, City Manager J. Eldon Mariott, City Attorney G. Robert Fellows, and Council Members Grace S. Martin, J. L. Saunders, Leon M. Weekes, and O. F. Youngblood present. 1. The opening prayer was delivered by Reverend Harold Dibblee of the Unity of Delray Beach Church. The Pledge of Allegiance to the Flag of the United States of America was then given. 3__m. The minutes of the regular meeting of August 28, 1972, were unanimously approved on motion by Mrs. Martin, seconded by Mr. Youngblood. 4.a. Mr. Weekes requested that the City Manager have the appropriate City department clear up the lot on the North side of East Atlantic Avenue between Buster's Barber Shop and Butler Hardward & Appliances store, directly across from the City Park. 4.b. Mayor Scheifley presented a Proclamation to Sgt. Andrew B. Bittle, U. S. Army Recruiting Station, 3030 South Dixie Highway, West Palm Beach, Florida, proclaiming the month of September, 1972, MODERN VOLUNTEER ARMY MONTH in Delray Beach, Florida. 4.c. Mayor Scheifley read a Proclamation declaring September 17 through September 23, 1972, CONSTITUTION WEEK and he requested the City Clerk to forward same to the persons connected with The Jonathan Dickinson Chapter, Daughters of the American Revolution. 6oa. The City Manager stated that a motion was required by the City Council to designate the City's Voting Delegate who would cast the votes for the City at the Florida League of Cities' Annual Con- ference which will be held in Bal Harbour, Florida, on October 20 and 21, 1972. Mr. Saunders moved that Mr. Weekes be so designated, seconded by Mrs. Martin, abstained from by Mr. Weekes, and duly carried. Mayor Scheifley stated that he felt this action was most appropriate as Mr. Weekes is presently Vice President of the Palm Beach County Municipal League and possibly will be its President next year. 6.b. The City Manager recommended that the City Council authorize the execution of an agreement with the Lake Worth Drainage District for the City to construct a !4-inch sanitary sewer force main crossing under Canals E-3 1/2 and E-4 on the South side of Lowson Boulevard, and also to construct a 24-inch water main under Canals E-3 1/2 and E-4 on the North side of Lowson Boulevard to serve the western section of the City now under various stages of -1- 168 development. Mr. Youngblood so moved, seconded by Mrc Saunders, and unanimously carrJ, ed. 6.c. City Manager Mariott stated that at its May 8, 1972, meeting, Council had aw.~rded a contract for tile drilling of three (3) additional water supply wells, at a contract bid price of $94,527.00. It was reported at that time that there was an in- sufficient amount of money in the appropriate account to cover the contract and that a recommendation would be made at a later meeting regarding the source of funds for the differential. He recommended that Council authorize the transfer of $50,000.00 from the Water & Sewer ContJ. ngency Account to the Water Source budget to provide the additional funds needed to cover the above referred to contract and other expenses. Mr. Weekes made a motion to authorize the transfer of funds in the amount of $50,000.00 from the Water and Sewer Con- tingency Account to the Water Source budget, said motion seconded by Mrs. Martin, and carried unanimously. 8.a. The City Manager presented RESOLUTION NO. 46-72. A RESOLUTION ~.Ln~KING APPROPRIATIO~S OF SUMS OF MONEY FOR ALL NECESSARY EXPENDITURES OF THE CITY OF DELRAY BEACH, FLORIDA, FOR THE PERIOD FROM THE 1ST DAY OF OCTOBER, 1972, TO THE 30TH DAY OF SEPTEMBER, 1973; TO PRESCRIBE Tt{E TERMS, CONDITIONS AND PROVISIONS WITH RESPECT TO THE ITEMS OF APPROPRIATIONS AND THEIR PAY- MENT; AND TO REPEAL ALL RESOLUTIONS WHOLLY IN CONFLICT WITH THIS RESOLUTION, A~D ALL RESOLUTIONS INCONSISTENT WITH THIS RESOLUTION TO THE EXTENT OF SUCH INCONSIST- ENCY; AND TO LEVY A TAX ON ALL PROPERTIES WITHIN THE CITY OF DELRAY BEACH FOR MAINTENANCE AND OPERATION, AND TO LE%nI A TAX FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON BONDED i~N/DEBTE~DNESS, AIID TO ALLOCATE AND APPROPRIATE SAID COLLECTIONS THEREUNDER. (Copy of RESOLUTION NO. 46-72 is attached to the official copy of these minutes.) See: Pages 172 A-D City Manager ~.~ariott recommended that RESOLUTION NO. 46-72 adopting ~he City's budget for th~ 1972-1973 fiscal year be passed following a Public Hearing to be held thereon. He explained that the proposed budget had been revised to take into account all of the changes dete~nined informally by Council at workshop, said changes being reflected in RESOLUTION NO. 46-72. The City Manager explained the items which composed the budget, what it is intended· ~o do, the lowering of tax mills, and the changing of other items. A Public Hearing was held, having been legally advertised in compliance with the laws of the State of Florida and the Charter of the City of Delr~v Beach. There being no objection to RESOLUTION NO. 46-72, said Resolution was unanimously passed and adopted on motion by Mr. Saunders, seconded by Mr. Youngblood. 8.b. The City Manager presented RESOLUTION NO. 47-72. A P~SOLUTION OF THE CITY COUNCIL OF THE CITY OF DELRAY BF2tCH, FLORIDA, Ey~PtIESSING ITS APPRECLRTION TO THE DELRAY BEACH ~USINESS & PROFESSIONAL WOMEN'S CLUB FOR CO~LECTIJG SUFFICIENT MONEY TO DONATE TO THE CITY FOR THE PURC~JkSE OF A NEW RESCUE UNIT. -2- 9-11-72. 169 (Copy of RESOLUTION NO~ 47-72 is attached to the official copy of t]~ese mina,%es.) See: Page 172-E RESOLUTION NO. 47-72 was unanimously passed and adopted on motion, by Mr. Saunders, seconded by Mrs. Martin. Mr. Saunders requested that copies of RESOLUTION NO. 47-72 be sent to the mel~ers cf the Delray Beach Business & Professional Women's Club who are listed in the Resolution. 8.c. The City Manager presented RESOLUTION NO. 48-72. A P~ESOLUTION AUTHORIZING THE ISSUANCE OF $5,000,000 WATER ALrD SEWER REVENL~E BOS~DS, SERIES 1972, AND PROVIDING FOR THE RIGHTS, REMEDIES AND SECURITY OF THE HOLDERS OF SAID WATER AND SEWER REVENUE BONDS, SERIES 1972. (Copy of RESOLUTION NO. 48-72 is attached to the official copy of these minutes. ) See: Pages 172 F-MMM Mr. Mariott stated that after clearance had been received, including confirmation from the City Attorney, Con- sulting Engineers, the City's Fiscal Agent, and Mr. John Trimble, bond attorney in New York, it had been planned to present RESOLU- TION NO. 48-72, authorizing the issuance of $5,000,000 water and sewer revenue bonds, for Council's consideration and passage. It had been intended that these funds constitute the City's financial participation in the 'upcoming $8,000,000+ water and sewer improve- ment and expansion program, with the remainder of the financing to be supplied by grant funds. Mr. Youngblood moved for the passage of RESOLUTION NO. 48-72, seconded by Mr. Saunders, and unanimously carried. 8.d. The City Manager presented ORDINANCE NO. 29-72. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, ANNEXING TO THE CITY- OF DELRAY BEACH CERTAIN LANDS LYING IN SECTION 7, TOWNSHIP 46 SOUTH, RANGE 43 EAST, WHICH LANDS ARE CONTIGUOUS TO EXISTING MUNICIPAL LIMITS OF SAID CITY; REDEFINING THE BOUNDARIES OF SAID CITY TO INCLUDE SAID LANDS; PROVIDING FOR THE RIGHTS AND OBLIGATIONS OF SAID LANDS; AND PROVIDING FOR THE ZONING THEREOF. (Copy of ORDINANCE NO. 29-72 is attached to the official copy of these minutes.) See: Pages 172 NNN-~Q Mr. Mariott stated that the applicant in this instance was Mr. Melvin I. Muroff. He described the background of the proposed ORDINANCE NO. 29-72 in detail. A sketch of the land involved was then projected on a screen, said land and the proposed zoning thereof being described as follows: 1. A tract of land consisting of 210.47 acres located on the North side of Lake Ida Road, West of Congress Avenue, subject to RM-2 zoning with the exception of a 100-foot strip East along Davis Road, being annexed subject to R-1AAB zoning, with the stipulation that the RM-2 zoned property be rezoned to RM-15 upon establishment of this new zoning district. -3- 9-11-72. 170 2. A tract of land consisting of 1.85 acres located on the South side of Lake ida Road, East of Congress Avenue, subject to C-3 zoning, with the stipulation ~at it be rezoned LI upon establish- ment of this new zoning district. Upon the City Manager's request, the City Clerk read a petition which had been submitted by 11 persons, owners of property West of the subject 210.47 acres, all of whom objected to the proposed zoning. The City Manager asked that it be noted in the minutes that the Planning and Zoning Board, by unanimous vote, recommended the annexation of these two (2) tracts of land, subject to the zoning as described. Following a general discussion, a Public Hearing was declared open by Mayor Scheifley, having been legally advertised in compliance with the laws of the State of Florida and the Charter of the City of Delray Beach. Mr. Thomas A. Cook, Jr., 3591 Lone Pine Road, discussed the graph projected on the screen, the Land Use Plan in connection with the property involved, and the proposed ORDINANCE NO. 29-72. Mr. Cook opposed passage of ORDINANCE NO. 29-72 due to the proposed zoning of the 210.47 acres. Mr. John H. Adams, Attorney, Lone Pine Road, stated that the map of the area involved, as projected on the screen, was dis- torted, in his opinion. He then informed Council of the background of the situation. Mr. Adams also reported on the Palm Beach County Area Advisory Development Board's findings regarding population and density growth in Dade and Broward County. He objected to the proposed zoning of the 210.47 acres. Following a general discussion, in which Mr. James W. Nowlin, Jr., Attorney, participated and objected to the proposed zoning, Mayor Scheifley closed the Public Hearing and turned the matter over to Council. After due deliberation, Mr. Weekes made a motion to table ORDINANCE NO. 29-72 until October 9, 1972, and also moved that a workshop meeting be held by Council prior to that date. Said motion was seconded by Mrs. Martin and unanimously carried. Mr.~ Saunders requested that the property owners involved in this matter be notified of the workshop meeting date. Mayor Scheifley informed Council that he would not be present for the workshop or the October 9, 1972, meetings and asked Council to consider zoning the remaining property R-10 instead of R-15. 8.e. The City Manager presented ORDINANCE NO. 30-72. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, ANNEXING CERTAIN PUBLIC RIGHT-OF-WAY KNOWN AS FOREST DRIVE BEING IN SECTION 24, TOWNSHIP 46 SOUTH, RANGE 42 EAST, WHICH IS LOCATED IN THE DELRAY BEACH RESERVE AREA. (Copy of ORDINANCE NO. 30-72 is attached to the official copy of these minutes.) See: Pages 172 PPP-QQQ A Public Hearing was declared open by Mayor Scheifley, having been legally advertised in compliance with the laws of the State of Florida and the Charter of the City of Delray Beach. -4- 9-11-72. 171 Mr. James Ritterbusch raised a question regarding the past owners of' the property and, after rec~iving an explanation from the City Manager, said ORDINANCE NO. 30-72 was unanimously passed and adopted on this s~cond and final reading, on motion of Mrs. ~lartin, seconded by Mr. Saunders. 8.f. The City Manager presented ORDINANCE NO. 32-72. AN ORDINANCE OF THE CITY COUNCIL OF THE CI~f OF DELRAY BEACH, FLORIDA, ANI~EXING TO THE CITY OF DELRAY BEACH A PORTION OF LOT 20, BLOCK 1, DELRAY SHORES SUBDIVISION, WHICH LAND IS CONTIGUOUS TO EXISTING MUNICIPAL LIMITS OF SAID CITY; REDEFINING THE BOUNDARIES OF SAID CITY TO INCLUDE SAID LAND; PROVIDING FOR THE RIGHTS AND OBLIGATIONS OF SAID LAND; AND PROVIDING FOR THE ZONING THEREOF. Following an explanation of the location, zoning and past history of the property involved under ORDINANCE NO. 32-72, the City Manager stated that this Ordinance, if passed, would annex to the City, subject to C-3 zoning, the property purchased by the City in connection with the City's acquisition of the water and sewer system from Ecological Utilities, Inc. ORDINANCE NO. 32-72 was unanimously placed on first reading, on motion bY Mr. Youngblood, seconded by Mr. Saunders. 10.a. The following Bills for Approval were unanimously approved, upon motion by Mr. Youngblood, seconded by Mr. Saunders: General Fund $167,105.85 Water Revenue Fund $166,789.58 Utilities Tax Certificates, Principal and Interest Redemption Fund, Water and Sewer Fund $ 23,000.00 Interest and Sinking Fund, Water and Sewer Revenue Bonds $ 97,000.00 Utilities Tax Revenue Fund $ 75,440.00 Cigarette Tax Fund $ 10,047.72 Capital Improvements Construction Trust Fund $ 3,074.68 Sewer Construction Trust Fund, First National Bank of Delray Beach $ 7,946.75 10.b. The City Manager presented ORDINANCE NO. 33-72. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, ANNEXING TO THE CITY OF DELRAY BEACH CERTAIN LAND LYING IN SECTION 8, TOWNSHIP 46 SOUTH, RANGE 43 EAST, WHICH LAND IS CONTIGUOUS TO EXISTING MUNICIPAL LIMITS OF SAID CITY; REDEFINING THE BOUNDARIES OF SAID CITY TO INCLUDE SAID LAND; PROVIDING FOR THE RIGHTS AND OBLIGATIONS OF SAID LAND; AND PROVIDING FOR THE ZONING THEREOF° -5- 9-11-72. 172 The City M~nager informed Council that ORDINANCE NO. 33-72 provides for annexation of the d~scrik'~e,~ property under R-1AA zoning and wo~.~Id annex a tract of land located at 729 i~'.W. 9 Street, ov,7~ed by DON C. and JANET R. S~LALLWOOD, ~nho desire City water and sanitary sewer services~ Mr. i~ariott stated that the petitioners were having serious septic tank pro'blems, and unless there was an objection by Council, he would then authorize sewer service to be made available immediately upon placing of the Ordinance on first reading. ORDINANCE NO. 33-72 was unanimously placed on first reading, on motion by Mr. Saunders, and seconded by Mrs. Martin. The meeting was adjourned at 8:30 P.M. ~LLIE E. YATES City Clerk MAYOR -6- 9-11-72. 172-A RESOL~?~ ON N~.5. A RESOLO~I?IOI~ MIGt~!NG APPROPRIATIONS OF SUMS OF MONEY FOR ALL NECESSARY EXPENDITURES OF THE CI~ O~' DELRAY =Sz DAY OF BEACH, FLORIDA, FOR ~i'HE PERIOD FRO>i TIlE ' '~' OCTOBER, 1972, TO T~{E 30TH DAY OF SEPTEmbER, 1973; TO PRESCRIBE T[~ TERMS, CO~ITIONS ;~:D PROVISIONS WITH RESPECT TO %'HE ITEMS OF APPROPRIATIOI.~S AND THEIR PAY- P~NT; Pd%'D TO REPEAL ALL RESOL~IONS ~7tOLLY IN CONFLICT WITH THIS RESOLL7'tON, ~ ALL RESOLbTIONS INCONSISTENT- WITH THiS RESOLe'ZION TO THE EXTENT OF SUCH INCONSIST- ENCY; ~i~D TO LE~i A TAX ON ALL PROPERTIES WITHIN T~ CI~"f OF DEL~Y BEACH FOR P~INTEN~CE AND OPERATION, ~D TO LE~ A T~ FOR THE PAY~5~ENT OF PRINCIPAL ~ INTEREST ON BONDED INDEBTEDNESS, ~D TO ALLOCATE A~ APPROPRIATE -. SAID COLLECTIONS THEREUNDER. BE IT RESOLVED by the Council of the City of Delray Beach, Florida: That the following sums of money be, and hereby are appropriated upon the te~ms, conditions and provisions hereinbefore and hereinafter set forth:' ARTICLE I. GENERAL F LSXq} ~ Other Capital Estimated Expenditures: Salaries Expenses Outlay Total Div. of General GovernmentS 261,785. $ 98,220. $ 1,965. $ 361,970. Div. of Public Safety 1,122,775. 159,045. 88,660. 1,370,480. Div. of Public Works 498,460. 362,010. 98,725. 959,195. Employees Christmas Bonus 19,210. 19,210. Libraries 89,170. - ....... 89,170. Div. of Parks & Recreation 435,545. 151,835. 157,060. 744,440. Non-Departmental Division 594,660. 594,660. Debt Service ~12,980. 412,980. TOTAL ESTIMATEb EXPENDITURES $2,318,565.$1,887,130. $ 346,410. $4,552,105. GENERAL FUND Estimated Revenue: General Property Taxes $2,152,600. Franchise Taxes 163,200. Licenses, Permits and Fees 216,600. Fines and Forfeitures 67,200. Revenue from Use of Money and Property 34,700. Revenue from Other Agencies 499,100. Charges for Current Services 601,345. Sales and/or Recovery for Loss to City-Owned Property 18,425. Contributions and Transfers From Other Funds 585,275. Unappropriated Surplus 213,660. TOTAL ESTIMATED REVENUE $4,552,105. ARTICLE II. WATER AND SEWER FUND 172-B Page 2. Resolution ~o. 46-72. DEPARTMENT OF PT!BLIC UTILITIES Other Capiual Estimated Expendi'tures: Salaries Expenses _O_qtlay Total Administration $ 45,440. $ 23,510. $ 14,205. $ 83, ].55. Water Source 18, i50. 130,400. 148,550. Water Treatment 67',610. 13,175. 7,050. 87,835. Water Distribution 157,055. 75,425. 180,250. 412,730. Accounting & Collection 60,400. 60,400. Sewer System 104,470. 38,705. 58,800. 201,975. Non-Departmental Division 739,255. - ...... 739,255. Debt Service ~ 363,605. 363,605._ TOTAL WATER & SEWER FUND EXPENDITURES $ 374,575. $1,332,225. $ 390,705. $2,097,505 WATER AND SEWER FUND Estimated Revenue: Revenue From Use of Money and Property $ 41,200. Charges For Current Services !,549,950. Sale and/or Recovery For Loss to City-Owned Property 500. Unappropriated Surplus ~ 505~855. TOTAL ESTIMATED RE~JENUE $2,097,505. ARTICLE III. CIGARETTE TAX FUND Other Capital Estimated Expenditures: Salaries Expenses Outlay. Total Div. of Public Works $ $ 44,640. $ $ 44,640. Debt Service 156,255,. 156,255.. TOTAL ESTIMATED EXPENDITURES $ 200,895. $ 200,895. CIGARETTE TAX FUND Estimated Revenue: Revenue From Use of Money and Property $ 4,500. Revenue From Other Agencies 80,000. Contributions & Transfers From Other Funds 116,835. Unappropriated Surplus (440~ TOTAL ESTIMATED REVENUE $ 200,895 ARTICLE IV. UTILITIES TAX FUND Other Capital Estimated Expenditures: Salaries Expenses Outlay__ Total Transfer $. $ 287,415. $ $ 287,415. Debt Service 46,685. 46,685~ TOTAL ESTIMATED EXPENDITURES $ 334,100. $ 334,100. 172-C Page 3. F. esolution No. 46-72. UTIL~ ~.IES T~Sf FUND EstJ. mated Revenue: Utilities Consumption and Servic'e Ta:~:cs $ 345,000. Revenue From Use of Money and Property 1,100. Unappropriated Surplus (12,000 ..) TOTAL ESTIMATED REVENUE $ 334,100. ARTICLE V. CONDITIONS RELATING TO APPROPRIATIONS: Section 5.1 - All monies hereinbefore appropriated are appropriated upon the terms, conditions, and provisions hereinbefore and hereinafter set forth. Sectioh 5.2 - Subject to the qualifications contained in this resolution all appropriations made out of the General Fund are declared to be maximum, conditional, and proportionate appropriations, the purpose being to make the appropriations payable in full in the amounts herein named if neces- sary and then only in the event the aggregate revenues collected and other resources available during the period commencing the 1st day of October, 1972, and terminating the 30th day of September, 1973, for which the ap- propriations are made, are sufficient to pay all the appropriations in full; otherwise the said appropriations shall be deemed to be payable in such proportion as the total sum of realized revenue of the General Fund, is to the total amount of revenues estimated by the City Council to be available in the period commencing the 1st day of October, 1972 and termi- nating the 30th day of September, 1973. Section 5.3 - All balances of the appropriations payable out of the General Fund of the City Treasury unencumbered at the close of business on the 30th day of September, 1972, except as otherwise provided for, are hereby de- clared to be lapsed into the City Treasury and may be used for the payment of the appropriations which may be made in any appropriation for the fiscal year commencing the 1st day of October, 1972. Provided, however, nothing in this Section shall be construed to be.applicable to unencumbered balancel remaining to the credit of the Water and Sewer Fund, Cigarette Tax Fund or any funds created by the setting up of special revenue, but such balances shall be used in financing the proposed expenditures of these funds for the fiscal year commencing the 1st day of October, 1972. Section 5.4 - No division, department, bureau, agency, or individual re- ceiving appropriations under the provision of this resolution, as outlined in Articles I through IV, shall exceed the amount of its or his appropria- tion, as outlined in Articles I through IV except with the consent and ap- proval of the City Council first obtained; and if such division, department, bureau, agency, or individual shall exceed the amount of its or his appro- priation without such consent and approval of the City Council, the admin- istrative officer or individual, in the discretion of the City Council, may be deemed guilty of neglect of official duty and may be subject to removal therefor. Section 5.5 - Nothing in this resolution shall be construed as authorizing any reduction to be made in the amounts appropriated in this resolution for the payment of interest, on, or retirement of, the debt of the City of Delray Beach, Florida. 17 2-D Page 4. Resolution No. ~6-72. Section 5.6 - None of the monies enumerated in this resolution in 6on- nection with the General Pund, Water and Sewe_~ Fun~., Cigarette Tax Fund or any other Fund of ~h~ Ci~v shall be c~penda~ for any purpose than those for which they are appropriated, and it shall be the duty of the Director of Finance to see that this section is complied with in all respects and report to the City Manager and City Council any violations thereof. Section 5.7 - Ail monies collected by any department, bureau, agency or individual of the City Government shall be paid promptly into the City Treasury. Section 5.8 - The foregoing budget be and hereby is adopted as the of- ficial budget of the City of Delray Beach for the aforesaid period. ~ Provided, however, that the restrictions with respect to the expenditures of the funds appropriated shall apply only to the lump sum amounts for classes of expenditures which have been included in this resolution. 'ARTICLE VI. TAX LEVY Section 6.1 - That there shall be and hereby is appropriated for the Gen- eral Fund operations of the City the revenue derived from the tax of 9.5 mills per one ($1.00) dollar of assessed valuation, which is hereby levied on all taxable property within the City of Delray Beach for the fiscal year commencing October 1, 1972, and terminating September 30, 1973, the assess- ed valuation on all taxable property for operating purposes within the City of Delray Beach being $186,391,172., for operating and/or maintenance ex- penses of the General Fund, and also in addition, all revenues derived by said City during said fiscal year from all other sources than the tax levy for current bond service and that part of collection of delinquent taxes levied for bond service. Section 6.2 - That the amount of money necessary to be raised for interest charges and bond redemption which constitutes a general obligation bonded indebtedness of the City of Delray Beach, is $412,980., and that there is hereby appropriated for the payment thereOf, mll revenues derived from the tax levy of 2.3 mills per one ($1.00) dollar of assessed valuation, which is hereby levied for that purpose for the fiscal year commencing October 1, 1972 and terminating September 30, 1973, upon the taxable property of the City of Delray Beach, the assessed valuation being $186,391,172., and there is hereby appropriated, if necessary, from the surplus sinking fund cash, sufficient monies, which, together with proceeds of said tax levy for debt, will meet the debt requirements for the aforesaid fiscal year. _ ARTICLE VII. PASSED AND ADOPTED by the City Council of the City of Delray Beach, Florida, this llth day of September, 1972. // MA Y O R ~/~ ATTEST: C i ty C ~k 172-E A RESOLUTZON OF THE CITY COUNCIL OF ~4.E CITY OF DELRAY BEA(5-1, FLORIDA, E~PRESSiNG ITS APPRECIATION ~fO THE DELRA¥ BEACH BUSINESS & . PROFESSIONAL WO~V~.'N ' S CLUB FOR COLLECTING SUFFICIENT MONEY TO DONATE TO THE CITY FOR THE PURCHASE OF A NEW RESCUE UNIT. WHEREAS, in September of 1971 the Delray Beach Business & Professional Women's Club approached the City Council regarding the replacement of the Rescue Unit (Little Red Wagon) and volun- teered to raise the money necessary if Council would use the money for such purchase; and, WHEREAS, the Council gave such assurance; and, WHEREAS, under the leadership of Nikki Zuckerman, President, Francis Led[better, Treasurer, and Gertrude H. Cassilly and Helen Speed as Co-chairmen, the Club, consisting of approximately 30 members, proceeded to raise the necessary money by May, 1972; and, ~ WHEREAS, all expenses necessary in the drive such as stationery, stamps, posters, "thank you" notes and uncounted hours were donated by the Club members; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, that: 1. The City of Delray Beach is deeply appreciative of the action taken by the Delray Beach Business & Professional Women's Club and the people donating through them. 2. The City has on order a.hew Little Red Wagon to be delivered around November 15, 1972, and to be paid entirely from the funds raised and donated through the Delray Beach Business & Professional Women's Club. 3. The City Clerk send copies of this Resolution to Delray Beach Business & Professional Women's Club, Florida Business & Professional Women's Club and National Business & Professional Women's Club. PASSED AND ADOPTED on this llth day of September, 1972. ATTEST: City Cle rk(.~/ 172-F RESOLUTION NO. 48-72. A ~SOLU~ION AUTIIORIZING T}[E ISSUe'ICE OF $5 ~ 500r 000 WATER ;d~D SEVER REVENUE BONDS, SERIES 2.972, AND PROVIDING FOP, THE RIGHTS, RE~4EDIES AND SECURITY OF TI~E HOLDERS OF SAID WATER ~2~D SE~ER , REVENUE BONDS, SERIES 1972. BE IT RESOL%~D BY THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA: ARTICLE I STATUTORY AUTHORITY, FINDINGS AND DEFINITIONS 1.01. AUTHORITY FOR THIS RESOLUTION. This resolution is adopted pursuant to the provisions of Chapter 184, Florida Statutes, and other applicable pro- visions of law~ 1.02. FINDINGS. It is hereby found and deter- mined as follows: (A) That the City of Delray Beach now owns, operates and maintains a municipal waterworks plant and system for the supply and distribution of water and a sanitary sewer system for the collection and disposal of sewage and waste matters, within and ~ithout said City. ~(B) That the City has heretofore duly issued $1,550,000 Water and Sewer Revenue Refunding Bonds, dated December 1, 1963, payable from and secured by a lien on and pledge of the net revenues derived from the operation of said waterworks plant and system and the sanita~7 sewer 172-G system of said City, pursuant to a resolution heretofore duly adopted on December 12, 1963 (which said Bonds were issued to refund $1,264,000 Water Revenue Certificates, Series 1957, dated June 1, 1957); that as of now there are outstanding and unpaid $1,030,000 of said Water and Sewer Revenue Refunding Bonds, dated DeCember 1, 1963. (C) That the City has heretofore duly issued $500,000 Water and Sewer Revenue Bonds, dated December 1, 1961, payable from and secured by a lien on and pledge of the net revenues derived from the operation of the water- works plant and~system and the sanitary sewer system pari passu with said outstanding Water and Sewer Revenue Re- funding Bonds, dated December 1, 1963, pursuant to a resolution heretofore duly adopted on November 6, 1961; that as of now there are-outstanding and unpaid $450,000 of said Water and Sewer Revenue Bonds,' dated December 1, (D) That the City has also heretofore duly issued $1,500,000 Water and Sewer Revenue Bonds, Series 1962, dated December 1, 1962, payable from and secured by a lien on and pledge of the net revenues derived from the operation of the waterworks plant and system and the sanitary sewer system pari passu with said outstanding Water and Sewer Revenue Refunding Bonds, dated December 1, 1963, and said outstanding Water and Sewer Revenue Bonds, -2- Res. No. 48-72. 172-H dated December I, 1961, pursuant to a resolution hereto- fore duly adopted on November 26, 1962; that as of now there are Outstanding and unpaid $1,400,000 of said Water-and Sewer Revenue Bonds, Series 1962. (E) That the City has also heretofore duly issued $2,000,000 Water and Sewer Revenue Bonds, Series 1965, dated June 1, 1965, payable'from and secured by a lien on and pledge of the net revenues derived from the operation of the waterworks plant and system and the sanitary sewer system pari passu with said outstanding Water and Sewer Revenue Refunding Bonds, dated December 1, 1963, said outstanding Water and Sewer Revenue Bonds, dated December 1, 1961, said outstanding Water and Sewer Revenue Bonds, Series 1962, dated December 1, 1962, and said outstanding Water and Sewer Revenue Bonds, Series 1965, dated June 1, 1965, pursuant to a resolution heretofore duly adopted on July 12 , 1965; that as of now there are outstanding and unpaid $1,900,000. of said Water and Sewer Revenue Bonds, Series 1965, dated June 1, 1965. (F) That it is deemed advisable and in the best economic interest of the City to construct and acquire additions, extensions and improvements to the water system of said combined waterworks plant and system and the sanitary sewer system of said City (hereinafter referred to as "Combined Public Utility"), at an estimated cost of -3- Res. No. 48-72. 172-I $7,700,000, and to ·finance part of the cost thereof by the issuance of $5~000~000 Water and Sewer Revenue Bonds, Series 1972, and to pledge the net revenues of said' Combined Public Utility for the payment thereof on a parity with the other bonds herein referred to which are also payable from the net revenues of s~id Combined Public Utility. (G) That pursuant to the provisions of Section 4.03(G) of the resolution authorizing the outstanding Water and Sewer Revenue Refunding Bonds, dated December 1, 1963, and Section 11 of each of said resolutions au- thorizing the issuance of Water and Sewer Revenue Bonds, dated December 1, 1961, and the Water and Sewer Revenue Bonds, Series 1962, dated December 1, 1962, and Section 5.03(G) of the resolution which authorized the out- standing Water and Sewer Revenue Bonds, Series 1965, dated June 1, 1965, the City may issue obligations on a parity with said Water and Sewer Revenue Refunding Bonds, dated December 1, 1963, said Water and Sewer Revenue Bonds, dated December 1, 1961; said Water and Sewer Revenue Bonds, Series 1962, dated December 1, 1962, and said Water and Sewer Revenue Bonds, Series 1965, dated June 1, 1965, if certain conditions prescribed in said Sections are satisfied. (H) That said conditions will be met in that -4- Res. No. 48-72. 172-J the'average annual net revenues, as adjusted, of said Combined Public Utility for the two completed fiscal years immediately preceding the issuance of the bonds herein authorized will have been at least equal to one and one-half times the highest combined interest and principal requirements for any.succeeding fiscal year on all the bonds now outstanding hereinbefore referred to payable from the net revenues of said Water and Sewer System and on the Water and Sewer Revenue Bonds, Series 1972, herein authorized to be issued. (I) T~at the principal of and interest on the Water and Sewer Revenue Bonds, Series 1972, to be issued pursuant to this resolution and all the reserve, sinking fund and other payments provided for herein will be paid solely from the net revenues derived from the operation of said Combined Public Utility, and it will never be necessary or authorized to levy~taxes on any real prop- erty in said City to pay the principal of and interest on the Water and Sewer Revenue Bonds, Series 1972, to be issued pursuant to this resolution or to make any of the reserve, sinking fund or other payments provided in this resolution and the Water and Sewer Revenue Bonds, Series 1972, herein authorized to be issued shall not constitute a lien upon said Combined Public Utility or upon any other property whatsoever of or in the City of Delray Beach. -5- Res. No. 48-72. 17 2-K 1.03. REsoLUTION TO CONSTITUTE CONTRACT. In consideration of the acceptance of the Bonds authorized to be issued hereunder by those who shall hold the same from time to timed this resolution shall be deemed to be and shall constitute a contract between the City of Delray Beach, Florida, and such Bondholders, and the covenants and agreements herein set forth to be performed by said City shall be for the equal benefit, protection and security of the legal holders of any and all of such Bonds and the coupons attached thereto, all of which shall be of equal rank and without preference, priority or distinction of any of the Bonds or coupons over any other thereof except as expressly provided therein or herein. 1.04. DEFINITIONS. The following terms shall have the following meanings in this resolution unless the text otherwise expressly requires: (A) "City" shall mean the~City of Delray Beach, Florida. (B) "Act" shall mean ChaPter 184, Florida Statutes. (C) "Bonds" shall mean the $5,000,000 Water and Sewer Revenue Bonds, Series 1972, authorized to be issued pursuant to this resolution, together with any pari Res. No. 48-72. 17 2-L passu additional bonds hereafter issued in the manner hereinafter provided, and the interest coupons attached to said Bonds. (D) "1963 Bonds'~ shall mean the outstanding Water and Sewer Revenue Bonds, dated December 1, 1963, of the City of Delray Beach~ originally issued in the amount of $1,550,000. (E) "1961 Bonds" shall mean the outstanding Water and Sewer Revenue Bonds of the City of Delray Beach, dated December 1, 1961, originally issued in the amount of $500,000. (F) "1962 Bonds" shall mean the outstanding Water and Sewer Revenue Bonds, Series 1962, dated December 1, 1962, originally issued in the amount of $1,500,000. (G) "1965 Bonds" shall mean the outstanding Water and Sewer Revenue Bonds, Series 1965, dated June 1, 1965, originally issued in the a~ount of $2,000,000. (H) "1963 Bond Resolution" shall mean the resolution adopted by the City Council on December 12, -1963, authorizing the Water and Sewer Revenue Refunding Bonds, dated December 1, 1963. (I) "1961 Bond Resolution', shall mean the resolution adopted by the City Council on November 6, - 7.- Res. No. 48-72. 172-M 1961, authorizing ~he 1961 Bonds. (J) "1962 Bond Resolution shall mean the resolution adopted by the City Council on November 26, 1962, authorizing the 1962 Bonds. (K) "1965 Bond Resolution" shall mean the resolution adopted by the City Council on July 12 , 1965, authorizing the 1965 Bonds. (L) "Parity Bonds" shall mean all obligations heretofore issued which will be on a parity with the Bonds herein authorized in the manner hereinafter provided. (M) "First Lien Obligations" shall mean the 1961 Bonds, the 1962 Bonds, the 1963 Bonds, the 1965 Bonds, the Bonds herein authorized and all obligations which may hereafter be issued on a parity with the 1961 Bonds, the 1962 Bonds, the 1963 Bonds, the 1965 Bonds and the Bonds herein authorized. (N) "Holder of Bonds" or "Bondholder", or any similar term, shall mean any person who shall be the bearer or'owner of any bond or bonds registered to bearer · or not registered, or the registered owner of any out- standing bond or bonds which shall at the time be regis- tered other than to bearer, or of any coupons represent- ing interest accrued or to accrue on said bonds. -8- Res. No. 48-72. 172-N (0) "water System" shall mean the complete waterworks plant and system, within and without the City, now owned by the City, or hereafter constructed or ac- quired, including all improvements, extensions, and additions thereto hereafter constructed or acquired, together with all lands or interest therein, plants, buildings, machinery, franchises, pipes, fixtures, equip- ment and all property, real or personal, tangible or intangible, now or hereafter owned or used by said City in connection therewith. (P) "Sewer System" shall mean the complete sanitary sewer collection, treatment and disposal system of the City 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 and used or useful in the operation thereof whether within or without the City. (Q) "Combined Public Utility" or "Water and Sewer System" means the Water System and the Sewer System. (R) "Fiscal Year" shall mean the period com- mencing on October 1 to and including the next succeeding -September 30. (S) "Water Revenue Certificate Ordinance" shall mean the ordinance adopted by the City Council on July 5, 1957, authorizing the 1957 Certificates which were -gr Res. No. 48-72. 172-0 refunded by the 1963 Bonds. (T) Words importing singular number shall in- clude the plural number in each case and vice versa, and words importing persons shall include firms and corpora- tions. 1.05. ESTIMATES. It is hereby found and de- termined that the estimated average annual gross revenues of the Combined Public Utility' for the years 1973 to 2002, is $ 1,958,000 ; that the estimated average annual cost of the operation, maintenance and repair of said Combined Public Utility in the years 1973 to 2002, is $909,000 ; and that on the basis of such estimates, the gross revenues to be derived from said Combined Public Utility will be sufficient to pay all the cost of the operation, maintenance and repair of said Combined Public Utility, and all debt service on the Bond~ authorized herein and all other obligations payable from the revenues of said Consulting Public Utility. -10- Res. No. 48-72. 172-P ARTICLE II 2.01. WATER AND SEKrER IMPROVEMENTS AUTHORIZED. There is hereby authorized the construction and acquisitio'n of additions, extensions and improvements to the Combined Public Utility of said City, consisting of, but not being limited to, new sewage treatment facilities force mains and sewer collection system improvements, sewer system and rehabilitation and repairs to the existing collection facilities in unsewered areas, water main extensions, water treatment plant expansion, water supply and water main extensions, all substantially in accordance with the plans and specifications prepared by Russell & Axon, Consulting Engineers of Daytona Beach, Florida, now on file or to be filed with the City Clerk, at an estimated cost of Seven Million Seven Hundred Thousand Dollars ($7,700,000), consisting of the proceeds of the Bonds authorized herein and other funds available there- for. Such cost shall be deemed '%o include the cost of the construction or acquisition of additions, extensions and improvements to said Combined Public Utility, including the acquisition of any lands or interest therein and of any fixtures or equipment or properties deemed necessary or convenient therefor, interest upon the Bonds issued pur- suant to this Resolution prior to the completion of such additions, extensions and improvements to the extent that the revenues derived from said Combined Public Utility are - 11 - Res. No. 48-72 172-Q insufficient therefor, engineering and legal expenses, fees for financial services, expenses for estimates of costs and of revenues, expenses for plans, specifications and surveys, administrative expenses and such other expenses as may be necessary or incidental to the financing authorized by this resolution, and the construction or acquisition of the additions, extensions and improvements to said Water and Sewer System authorized by this resolution, and the placing of same in operation, and for the payment of any temporary obligations issued for the purposes pro- vided in this r~solution. -12- Res. No. 48-72. 172-R 'ARTICLE Iii AUTHORIZATION, TEPJ,~, EX~ECUTION AND / REGISTRATION OF BONDS 3.01. AUTHORIZATION OF BONDS. Subject and pursuant to the provisions of this resolution, obliga- - tions of the City of Delray Beach, Florida, to be known as "Water and Sewer Revenue Bonds, Series 1972" are hereby authorized to be issued in the aggregate principal amount of not exceeding Five Million Dollars ($5,000,000) for the purposes of financing the cost of the additions, extensions and improvements to said Co~ined Public Util- ity authorized: in Article II hereof. 3.02. DESCRIPTION OF BONDS. The Bonds shall be dated June 1, 1972; shall be in the denomination of $5,000 each; shall be numbered from one (1) to one thou- sand (1,000) upwards in order of maturity; shall bear interest at a rate or rates not exceeding the legal rate, payab-le semi-annually on June 1 and December 1 of each year, and shall mature seriallY, in'numerical order, on June 1 of each year, in the years and amounts as follows: Year Amount 1974 $50,000 1975 50,000 - 1976 55,000 1977 60,000 1978 60,000 1979 65,000 · 1980 70,000 -13- Res. No. 48-72. 172-S Year Amount 1981 $ 75,000 1982 80,000 1983 80,000 1984 85v000 1985 90,000 1986 105,000 1987 110,000 1988 115,000 1989 120,000 1990 130,000 1991 140,000 1992 150,000 1993 160,000 1994 165,000 1995 175,000 1996 190,000 1997 195,000 1998 205,000 1999 510,000 2000 540,000 2001 570,000 2002 600,000 Bonds may have such provisions for re- maturity as shall hereafter be de- City Council. of such redemption shall be published least thirty (30) days prior to the date redemption in a financial newspaper or journal City of New York, New York. Interest of the Bonds duly called for redemption on the redemption date if payment thereof or provided for. Bonds shall be issued in coupon form, with respect to both principal and inter- Manhattan Bank, (N.A.) New York, New York, -14- Res. No. 48-72. 172-T in lawful money of the United States of America and shall bear interest from their date, payable in accordance with and upon surrender of the appurtenant interest coupons as they severally mature. 3.03. (A) EXECUTION OF BONDS AND COUPONS. Said Bonds shall be executed in the name of the City by the Mayor, either manually or with his facsimile signature, and its corporate seal shall be affixed thereto or ~ith- ographed or reproduced thereon and attested by the City Clerk, either manually or with his facsimile signature; provided, however, that at least one of said signatures shall be a manual signature. In case any one or more of the officers who shall have signed or sealed any of the Bonds shall cease to be such officer of the City before the Bonds so signed and sealed shall have been actually sold and delivered, such Bonds may nevertheless be sold and delivered as herein provided and may be issued as if the person who signed or sealed such Bonds had not ceased to hold such office. Any Bond may be signed and sealed on behalf of the City by such person as at the actual time of the execution of such Bond Shall hold the proper office in the City, although at the date of such Bonds such person may not have held such office or may not have been so authorized. The coupons to be attached to the Bonds and the -15- Res. No. 48-72. 172-U validation certificate on the Bonds shall be executed with the facsimile signature of ~he present or any future Mayor and Clerk of said City, and the City may adopt and use for that purpose the facsimile signature of any person who shall have been such Mayor or Clerk at any time on or after the date of the Bonds, notwithstanding that he may have ceased to be such Mayor or Clerk at the time when such Bonds shall be actually sold and delivered. (B) REGISTRATION AND NEGOTIABILITY. The Bonds may be registered at the option of the holder as to principal only, or as to both principal and interest, at the office of the Treasurer of the City, such registration to be noted on the back of said Bonds in the space Provided therefor. After such registration as to principal only, or both principal and interest, no transfer of the Bonds shall be valid unless made at said office by the registered owner, or by his duly authorized agent or representative and similarly noted on the Bonds, but the Bonds may be discharged from registration by being in like manner transferred to bearer and thereupon transferability by delivery shall be restored. At the Option of the holder the Bonds may thereafter again from time to time be reg- istered or transferred to bearer as before. Such regis- tration as to principal only shall not affect the negot- iability of the coupons which shall continue to pass by delivery. Res. No. 48-72. 172-V The Bonds shall be, and have all the qualities and incidents of negotiable instruments under the law merchant and the Uniform Commercial Code - Investment Securities Law of the State of Florida, and each suc- cessive holder, in accepting any of said Bonds or the coupons appertaining thereto, shall be conclusively deemed to have agreed that such Bonds shall be, and have all the qualities and incidents of, negotiable instruments under the law merchant and the Uniform Commercial Code - Invest- ment Securities Law of the State of Florida, and each successive holder shall be conclusively deemed to have agreed that said Bonds shall be incontestable in the hands of a bona fide holder for value in the manner provided hereinafter in the form of said Bonds. 3.04. BONDS MUTILATED, DESTROYED, STOLEN OR LOST. In case any Bond shall become mutilated or be destroyed, stolen or lost, the City may in its discretion issue and deliver a new Bond with all unmatured coupons, if anY, so mutilated, destroyed, stolen or lost in exchange and substitution for such mutilated Bond, upon surrender and cancellation of such mutilated Bond and attached coupons, if any, or in lieu of and substitution for the Bond and attached coupons, if any, destroyed, stolen or lost, and upon the holder furnishing the City proof of his ownership thereof and satisfactory indemnity and complying with such other reasonable regulations and -17- Res. No. 48-72. 172-W conditions as the City may prescribe and paying such expenses as the City may incur. All Bonds and coupons so surrendered shall be cancelled by the Clerk and held for the account of the City. If any such Bond or coupon shall have matured or be about to mature, instead of issuing a substituted Bond or coupon, the City maY pay the same, upon being indemnified as aforesaid, and if such Bond or coupon be lost, stolen or destroyed, without surrender thereof. Any such duplicate Bonds and coupons issued pursuant to this~ section shall constitute original, additional contractual obligations on the part of the City, whether or not the lost, stolen or destroyed bonds or coupons be at any time found by anyone, and such duplicate Bonds and coupons shall be entitled to equal and pro- portionate benefits and rights as to lien and source and security for payment from the net revenues of the Water System and Sewer System pledged herein, with all other Bonds and coupons issued hereunder. 3.05. FORM OF BONDS AND COUPONS. The text of the Bonds and coupons, shall be of substantially the following tenor, with such omissions, insertions and variations as may be necessary and desirable and authorized or permitted by this resolution or any subsequent resolution or ordinance adopted prior to the issuance thereof: Res. No. 48-72. 172-× No. UNITED STATES OF AMERICA $5,000 STATE OF FLORIDA COUNTY OF PALM BEACH CITY OF DELRAY BEACH ' WATER AND SEWER REVENUE BOND, SER~ES 1972 KNOW ALL MEN BY THESE PRESENTS that the City of Delray Beach, in Palm Beach County, Florida, for value received, hereby promises to pay to the bearer, or if this bond be registered, t? the registered holder as herein provided, on the first day of June, 19 , from the rev- enues hereinafter mentioned, the principal sum of FIVE THOUSAND DOLLARS with interest thereon at the rate of per centum per annum, payable semi-annually on the first day of June and the first day of December of each year upon the presentation and surrender of the annexed coupons as they severally fall due. Both principal of and interest on this bond are payable at the principal office of The Chase Manhattan Bank, (N.A.) New York, New York, in lawful money of the United States .of ~erica. (Here insert provisions for redemption prio~ to maturity, if any) -19- Res. No. 48-72. 172-Y A notice of any such redemption shall be published at least once at least, thirty (30) days prior to the date fixed for redemption in a financial news- paper or journal published in the City of New York, New York. Interest shall cease on any of the bonds duly called for redemption as provided above on the redemption date if payment thereof has been duly made or provided .for. This bond is one of an authorized issue of bonds in the aggregate principal amount of not exceeding $5,000,000 of like date, tenor and effect, except as to number, interest rate and date of maturity, issued to provide for the construction and acquisition of additions, extensions and improvements to the Water and Sewer System of said City, under the authority of and in full compliance with the Constitution and Statutes of the State of Florida, including particularly Chapter 184, Florida Statutes, and other applicable provisions of law, and a resolution duly adopted by the City Council of the City of Delray Beach on , 1972 (hereinafter called "resolution"), and is subject to all the terms and conditions of said resolution. This bond and the coupons appertaining thereto are payable solely from and, together with certain Water ~and Sewer Revenue Bonds, dated December 1, 1961, certain Water and Sewer Revenue Bonds, Series 1962, dated December 1, 1962, certain Water and Sewer Revenue Refunding Bonds, dated -20- Res. No. 48-72. 172-Z December 1, !963~ and certain Water and Sewer Revenue Bonds, Series 1965, dated June 1, 1965, of said City, and such obligations as may hereafter be issued on a parity therewith, secured by a lien upon and pledge of the net revenues derived from the operation of the waterworks plant and system and sewer system of the City of Delray Beach all in the manner provided in 'the resolution. This bond does not constitute an indebtedness of the City of Delray Beach within the meaning of any constitutional, statutory or charter provision or limitation, and it is expressly agreed by the holder of this bond and the coupons appertaining thereto that such holder shall never have the right to require or compel the exercise of the ad valorem taxing power of said City for the payment of the principal of and interest on this bond or the making of any sinking fund, reserve or other payments provided for in the resolution. It is furtheragreed between the City of Delray Beach and the holder of this bond that this bond and the obligation evidenced thereby shall ~ot constitute a lien upon the City's waterworks plant and system and its sewer system, or any part thereof, or on any other property of or in the City of Delray Beach, but shall constitute a lien only on the net revenues derived from the operation of said systems, in the manner provided in the resolution. The City, in the resolution, has covenanted and agreed with the holders of the bonds of this issue to fix Res. No. 48-72. 17 2-1~_A and establish and maintain such rates and collect such fees, rentals or other charges for the services and facilities of said waterworks plant and system and said sewer system, and to revise the same from time to time whenever necessary, as will always provide funds sufficient to pay, and out of said revenues to pay, as the same mature and become due, the principal of and interest on said · bonds, and all other obligations ranking on a parity there- with, all reserve or sinking funds or other payments provided for in the resolution, the necessary expenses of operating and maintaining said systems, and all other obligations payable out of the revenues of said waterworks plant and system and said sewer system, and that such rates, fees, rentals or other charges shall not be reduced so as to be insufficient to provide adequate funds for such purposes; and said City has entered into certain further covenants with the holders of the bonds of the issue of which this bond is one, for the exact terms of which reference is made to the resolution. It is hereby certified and recited that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this bond, exist, have happened and have been performed in regular and due form and time as required by the Laws and Constitution of the State of Florida applicable thereto, and that the issuance of this bond and the issue of bonds of which this -22- Res. No. 48-72. 172-BB bond is one, does not violate any constitutional, statutory or charter debt limitations or provisions. This bond and the coupons appertaining hereto, is, and has ail the qualities and incidents of, a negotiable instrument under the law merchant and the Uniform Commercial Code - ~nvestment Securities Law of · the State of Florida, and the original holder and each · successive holder of this bond, or of the coupons apper- taining hereto, shall be conclusively deemed by his acceptance hereof to have agreed that this bond, and the coupons appertaining hereto, shall be and have all the qualities and incidents of negotiable instruments under the law merchant and the Uniform Commercial Code - Invest- ment Securities Law of the State of Florida. The original holder and each successive holder of this bond, and of the coupons appertaining hereto, shall be conclusively deemed to have agreed and consented to the following terms and conditions: (a) Title to this bond, unless registered as herein provided, and to the annexed interest coupons, may be transferred by delivery in the manner provided for negotiable'~nstruments payable to bearer in the law merchant and the Uniform Commercial Code - Investment Securities Law Of the State of Florida; - (b) Any person in possession of this bond, unless registered as herein provided, or of the interest -23- Res. No. 48-72. 172-CC coupons hereunto a~per-~aining, regardless of the manner in which he shall have acquired possession, is hereby authorized to represent himself as the absolute owner hereof, and is hereby granted power to transfer absolute title hereto by delivery hereof to a bona fide purchaser, that is, to any one who shall purchase the same for value .(present or antecedent) without notice of prior defenses or equities or claims of ownership enforceable against his transferor; every prior taker or owner of this bond, unless registered as herein provided, and of the interest coupons appertaining hereto, waives and renounces all of his equities and ~ights herein in favor of every such bona fide purchaser, and every such bona fide purchaser shall acquire absolute title hereto and to all rights" represented hereby; and (c) The City of Delray Beach, Florida, may treat the bearer of this bond, unless registered as herein provided, and of the interest coupons hereunto appertaining, as the absolute owner hereof for all purposes without being affected by any notice to the contrary. This bond may be registered as to principal only, or as to both principal and interest, in accordance with the provisions endorsed hereon. IN WITNESS WHEREOF said City of Delray Beach, Florida, has issued this bond and has caused the same to be executed by the manual or facsimile signature of its Mayor -24- Res. No. 48-72. i?2-DD and the corporate seal of said City to be affixed hereto or lithographed or reproduced hereon, and attested by the manual or facsimile signature of the City Clerk of said City, and has caused the interest coupons hereto attached to be executed with the facsimile signatures of said Mayor and said City Clerk, all as of the first day ~of June, 1972. CITY OF DELRAY BEACH, FLORIDA By_ Mayor Attest: City clerk -25- Res. No. 48-72. 17~-EE (FOP~ OF COUPON) NO. $ On the day of , 19 , the City of Delray Beach, Florida, will pay to the bearer at the principal office of The Chase Manhattan Bank, (N.A.) New York, New York, in lawful money of the United States · of America from the revenues described in the bond to which this coupon is attached, the sum of Dollars ($ ), upon presentation and surrender of this coupon, being interest then due on its Water and Sewer Revenue Bond, Series 1972, dated June 1, 1972, No. CITY OF DELRAY BEACH, FLORIDA By Mayor Attest: City Clerk .. (To be inserted in coupons maturing after first callable date on callable bonds - "unless the bond to which this coupon appertains has been previously called for prior redemption and payment thereof duly made or provided for".) -26- Res. No. 48-72. 172-FF (Form of Validation Certificate) This bond is one of a series of bonds which were validated and confirmed by judgment of the Circuit Court of the Fifteenth Judicial Circuit of the State of Florida, in and for Palm Beach County, rendered ~on the day of , 1972. City ClErk, city of Delray Beach, Florida Mayor, Cit~'of Deiray Beach, Florida -27- Res. No. 48-72. 172 -GG PROVISION FOR REGISTRATION This bond may be registered in the name of the holder on the books to be kept by the City Treasurer, as Registrar, or such other Registrar as may hereafter be duly appointed, as to principal only, such'registration being noted hereon by such Registrar, in the registration blank below, after which no transfer shall be valid un- less made on said books by the registered holder or attorney duly authorized and similarly noted in the regis- tration blank below, but it may be discharged from regis- tration by being transferred to bearer, after which it shall be transferable by delivery, but it. may be again registered as before. The registration of this bond as to principal shall not restrain the negotiability of the coupons by delivery merely, but the coupons may be surren- dered and the interest made payable only to the registered holder, in which event the Registrar shall note in the registration blank below that this.bond is registered as to interest as well as principal, and thereafter the interest will be remitted by mail to the registered holder. With the consent of the holder and of the City of Delray Beach, this bond, when converted into a bond registered as to both principal and interest, may be reconverted into a coupon bond and again converted into a bond registered -28- Res. No. 48-72. 172-HH as to both principal' and interest as herinabove provided. Upon reconversion of this bond, when registered as to principal and interest, into a coupon bond, coupons rep- resenting the interest to accrue upon the bond to date of maturity shall be attached hereto by the Registrar and the Registrar shall note in the registration blank below whether the bond is registered as to principal only or payable to bearer. Date of : In Whose Name : Manner of : Signanure of ~egistration .: Registered : Registration : .Registrar : : : : : : : : : : : : Res. No. 48-72. 172-II ARTICLE IV APPLICATION OF BOND PROCEEDS 4.01. APPLICATION OF BOND PROCEEDS. The pro- ceeds, including accrued interest~ if any, received from the sale of the Bonds issued under the provisions of this resolution (herein referred to as "Bond Proceeds") shall be applied by the City forthwith upon the delivery of and payment for said Bonds as follows: (A) The accrued interest received on the sale of said Bonds shall be deposited in the Bond Fund here- inafter created and used only for .the payment of maturing interest on said Bonds. (B) The remaining proceeds of said Bonds shall be deposited in a fund to be known as the "Construction Fund" and shall be used only to finance the cost of said additions, extensions and improvements to said Combined Public Utility, as defined herein. Said Construction Fund shall be deposited in and.held by a bank or trust company which is a member of the Federal Deposit Insur- ance Corporation. No expenditures shall be made from said fund, except for engineering, financial and legal expenses, including fees of fiscal agents, and the cost of issuance of the Bonds authorized herein, without the approval of Russell & Axon, Consulting Engineers for the City, of -30- Res. No. 48-72. 1~ 2-JJ Daytona Beach, Florida or any successor Consulting Engineers hereafter appointed by the City (hereinafter referred to as "Consulting Engineers"). The City covenants ~hat upon the receipt of the proceeds of ~e Bonds issued under the provisions _ of this resolution, it will_to the full.extent of its legal powerS, proceed to construct and acquire the additions, extensions and improvements to said Combined Public Utility substantially in accordance with the plans and specifications therefor, heretofore prepared by the Consulting Engineers, and approved by the City, and in conformity with~law and all requirements of all govern- mental agencies having jurisdiction thereover, and that it will complete such construction and acquisition~with all expedition practicable. After the completion of the additions, exten- sions and improvements to said Combined Public Utility authorized by this resolution, or the reservation of sufficient moneys for the compl~tion~thereof, as certi- fied to by the Consulting Engineers, the moneys remain- ing in said Construction Fund shall.be deposited in the reserve portion of the Bond Fund to the extent necessary to make the amount then on deposit therein equal to the _ maximum amount required to be on deposit therein, and any further balance shall be deposited in the Renewal and Replacement Fund. -31- Res. No. 48-72. 17 2-KK Moneys in the Construction Fund may be, invested and reinvested by the City in direct obliga- tions of the United States of America, or in bank time 'deposits evidenced by certificates of deposit, and secured by collateral of direct obligations of the United States, maturing not later than twelve months after the date of purchase thereof. - 32 - Res. No. 48-72. 172._LL ' ARTICLE V COVENANTS, SPECIAL FUNDS AND APPLICATION THEREOF 5.01. BONDS NOT TO BE INDEBTEDNESS OF THE CITY. Neither the Water and Sewer Revenue Bonds, Series 1972, nor coupons shall be or constitute' an indebtedness of the City within the meaning of any constitutional, statutory or charter debt limitation but shall be payable solely from the net revenues derived from the operation of said Water and Sewer System as herein provided. No holder or holders of any bond issued hereunder, or of any coupon appertaining thereto, shall ever have the right to compel the exercise of the ad valorem taxing power of the City, or taxation in any form of any real property therein to ~ay said bonds or the interest thereon. 5.02. BONDS SECURED BY PLEDGE OF REVENUES. The payment of the debt service on all of the Water and Sewer Revenue Bonds, Series 1972, issued hereunder shall be secured forthwith equally and ratably by a lien on and pledge of the net revenues derived from the operation of the Water and Sewer System, pari passu with the lien on Said net revenues with the holders of said 1961 Bonds, said 1962 Bonds, said 1963 Bonds and said 1965 Bonds. The net revenues derived from said Water and Sewer System, in an amount sufficient to pay the principal of and interest on the Bonds herein authorized and said 1961 Bonds, said 1962 -33- Res. No. 48-72. 172-MM Bonds, said 1963 Bonds, and said 1965 Bonds, and to make the payments into the reserve and sinking funds and all other payments provided for in this resolution, are hereby irrevocably pledged to the payment of the.principal of and interest on the Bonds authorized herein, and other 'payments provided for herein, as the same become due. 5.03. COVENANTS OF THE CITY. So long as any of the principal of or interest on the Bonds shall be outstanding and unpaid, or until there shall have been set aside in the Bond Fund herein established, including the reserve therein, a sum sufficient to pay, when due, the entire principal of the Bonds remaining unpaid, to- ggther with interest accrued and to accrue thereon, the City covenants with the holders of any and all of the Bonds issued pursuant to this resolution as follows: (A) WATER REVENUE FUND AND SEWER REVENUE FUND. That from and after the issuance of any of the Bonds herein authorized the Combined Public Utility shall continue to be operated on the basis of a Fiscal Year as defined in Section 1.04 (R) hereof. On that basis, so long as any of the 1961 Bonds are outstanding, all income and revenues of every nature derived from the operation of the Water System shall be set aside into the Revenue Fund created by Section 7 of the Water Revenue Certificate Ordinance (hereinafter sometimes called the "Water -34- Res. No. 48-72. 172-NN Revenue Fund"), and all income and revenues of every nature derived from the operation of the Sewer System shall be set aside into the Sewer Revenue Fund created by Section 7 of the 1961 Bond ResolUtion; 'provided, how- ever, that after retirement of all of said 1961 Bonds, all revenues of the Combined Public Utility may be set aside into a separate and special fund to be known as the "Water and Sewer Revenue Fund" to be held by the Delray Beach National Bank of Delray Beach, Florida, or such other bank or banks as may be designated from time to time by the Council of the City of Delray Beach. such bank must be a member of the Federal Deposit Insurance Co~poration and all such funds so deposited must be secured as required for municipal funds under the laws of the State of Florida. Such fund or funds shall be held by the said bank or banks in accounts separate from all other ~£ty accounts, to be paid out only '~or the purposes and under the circumstances herein provided. (B) DISPOSITION OF WATER AND SEWER Revenues. That all revenues at any time remaining on deposit in the Water Revenue Fund and the Sewer Revenue Fund or the Water and Sewer Revenue Fund shall be disposed of only in the following manner and order of priority: (1) There shall first be paid from the money in the Water Revenue Fund and the Sewer Revenue Fund or -35- Res. No. 48-72. 172-00. the Water and Sewer Revenue Fund into a fund, to be held by a bank selected by the City, known as the Operation and Maintenance Fund, from time to time as needed, money sufficient to pay the reasonable and necessary expenses of operating and maintaining the Co~ined Public Utility. Said expenses are hereby defined as those expenses reasonably incurred in the normal operation of the Com- bined Public Utility and do not include the cost of additions, extensions or other capital improvements, nor any allowance for depreciation of capital assets. Money in the Operation and Maintenance Fund shall be expended as needed by the City for such expenses of operating and ~intaining the Combined Public Utility, but to the extent required by the rights of the holders of the outstanding 1961 Bonds, payments for operating and maintaining each system shall be made only from the revenues of that system. Joint expenses shall be e~uitably allotted between the two systems as the Council may determine.. (2) From the money in the Water Revenue Fund and the Sewer Revenue Fund or the Water and Sewer Revenue Fund remaining after the aforementioned payments into the Operation and Maintenance Fund, there shall be paid into the Bond Fund created by the Water Revenue Certificate Ordinance such amount of the gross revenues of the Com- bined Public Utility in each Fiscal Year as will be fully -36- 48-72. 172fPP. sufficient to pay all principal of and interest on all First Lien Obligations falling due in such fiscal year and to accumulate and maintain the reserve therein as hereinafter required. The Bonds herein authorized shall be payable from said Bond Fund as to principal and in- terest on a parity with said 1961 Bonds, said 1962 Bonds, said 1963 Bonds, and said 1965 Bonds, and there shall be paid into the Bond Fund all accrued interest received from the purchaser upon delivery of the bonds. Al! P~ayments into the Bond Fund shall be made monthly, on or before the fifteenth day of each month, as herein provided by the Treasurer to the First National Bank of Delray Beach, Delray Beach, Florida, and shall be held by said bank as a trust account solely for the purpose of paying principal of and interest and redemp- tion premiums on all First Lien Obligations. The Bond Fund, including the reserve, 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 with- 4rawable by anyone for any purpose other than for the payment of principal of and interest and redemption premiums on obligations payable therefrom. 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 -37- Res. No. 48-72. 172-QQ agent bank such amount as may be needed for the payment of interest, or principal and interest, falling due on the next succeeding June 1 or December i, as the case may be. (3) In addition to the amounts above required to be paid into the Bond Fund there shall be paid into the reserve portion of said fund such amount in each Fiscal Year as will cause the reserve to be built up, in & period of sixty months to an amount equal to the largest a~ount of principal and interest which will be payable from the Bond Fund in any future year. The reserve com- prising 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 either system not 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 amount sufficient to pay the largest amount of principal and interest payable from the Bond Fund in -38- Res. No. 48-72. 172-RR any future twelve months' period as aforesaid. The money in the reserve may, in the discretion of the Council, be invested in direct obligations of the United States of America, in which event the obliga- tions 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 may be necessary and have the proceeds of such liquidation applied to the payment of principal and interest. (4) In addition to the amounts above re- quired to be paid into the Bond Fund, there shall be paid in each Fiscal Year into the Renewal and Replace- ment Fund created by the Water Revenue Certificate Ordinance, whenever and to the extent necessary to ac- cumulate and maintain said fund in an amount equivalent to five per cent of the gross revenues derived from the operation of both systems in the preceding Fiscal Year. Money in said fund shall be used to pay the cost of making renewals, extensions, replacements or improvements to the Water System and to the Sewer System when the making thereof has been recommended by the engineer who is at the time serving as the consulting -39- Res. No. 48-72. 172-$S engineer for said systems. 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 therein, and as to'which there would otherwise be default. The 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 c~edit 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. Interest on and profits derived from the sale ~ of investments shall be added to the fund from which said investments were made. When the amount in the Bond Fund, including the reserve, and in the Renewal and Replacement Fund shall in the aggregate be equal to the amount of all principal and interest to maturity or all principal · and interest to the next redemption date plus redemption premiums then applicable on all First Lien Obligations outstanding, further payments into said funds may be -40- Res. No. 48-72. 172-TT discontinued, and the money in said fund shall be used for retirement or redemption of such outstanding obl iga tions. Ail money remaining in the Wa~er Revenue Fund and the Sewer Revenue Fund or the Water and Sewer Revenue Fund in each month in which all installments due during that month and all previous months (assuming equal monthly installments of payments required to be made annually) have been paid may be used to pay the cost of improvements and extensions to the Combined Public Utility, to pay principal of and interest and redemption premiums on junior lien obligations issued for such pur- pose, to retire First Lien Obligations prior to maturity either through call for redemption or purchase on the open market at a price no higher than that at which the same First Lien Obligations may be called for redemption on the next available redemption '~ate,' or for any other lawful purpose. (C) INSURANCE. That so long as any of the Bonds herein authorized remain outstanding, the City will maintain and carry, for the benefit of the holders of the Bonds insurance on the physical properties of the Combined Public Utility of the kinds and in the amounts normally carried by private companies engaged in the operation of similar properties. The City will also carry adequate -41- Res. No. 48-72. 172-UU public 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 obligat'ions payable from the revenues of the damaged property 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 provisions 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. (D) BOOKS AND RECORDS. That the City covenants and agrees that so long as any of. the First Lien Obliga- tions remain outstanding proper books of record and account will be kept by the City, separate and apart from all other ~ecords and accounts, showing complete and correct 'entries of all transactions relating to the Water System and the Sewer System, and that the holders of any of the First Lien Obligations, or any duly authorized agent or agents of such holders, shall have the right at all reason- able times to inspect all records, accounts and data relating thereto and to inspect the systems and all -42- Res. No. 48-72. 172-W properties comprising the systems. 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 a~count of each system, and that such audit will be available for inspection by the holder of any of the first lien obligations. 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 each system for such fiscal year. 2. A balance sheet as of the end of such Fiscal Year. 3. The accountant's comment regarding the manner in which and extent to whidh the city has carried out the requirements of this resolution, the Water Revenue Certificate Ordinance, the 1961 Resolution, the 1962 Resolution, the 1963 Resolution, and the 1965 Resolution, and the accountant's recommendation for any change or ~improvement in the operation of either 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 -43- Res. No. 48-72. name of the insurer and the expiration date of the policy. 5. The number °f~metered water customers, the n%u~ber of unmetered water customers, if 'any, the number of hydrants connected to the Water System, and the number 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 ~f the City during such Fiscal Year, the number of gallons of water billed, the estimated nu~er of gallons of water used for flushing mains and for extinguishing fires, and the number of gallons of water unaccounted for. 7. The number of properties connected to the Sewer System at the end of the Fiscal Year and the number of properties to which sewer service is available and which are not connected to said system at the end of the Fiscal Year. .. 8. The number of applications for sewer service on hand at the end of the year and the number of applica- tions for such service received during such Fiscal Year. 9. A statement showing the balances existing at the beginning and end of the fiscal year in the Bond -44- Res. No. 48-72. 17 2-X~ Fund, including the reserve therein, together with all deposits and withdrawals made during said Fiscal Year and the monthly deposit requirements for each such fund during the next succeeding Fiscal Year. 10. The total billings for such Fiscal Year and the average monthly billing per customer. 11. Ail schedules of rates and charges imposed for water and sewer service during the Fiscal Year. The City agrees to furnish a copy of each such audit to the holder of any of the First Lien Obligations at his request after the close of each Fiscal Year, and ~hat 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 require. The City further agrees that it .will furnish the original purchaser of the Bonds and all parity bonds and any holder, upon request, monthly operating reports of both systems 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. (E) RATES. That the City of Delray Beach covenants and agrees with the holder or holders of any of -45- Res. No. 48-72. 172-Y~f said First Lien Obligations that it will faithfully and punctually perform all duties with respect to each system required by the laws of the State of Florida, and that it will fix and collect sufficient rates and .charges for water and sewer services furnished by the Combined Public Utility and will segregate and apply the income derived therefrom in the manner provided by this resolution so that said revenues will at all times be fully sufficient t° operate and maintain the Combined Public Utility and to pay principal of and interest on said First Lien Obligations promptly as each falls due and to make available for purposes junior in priority to current principal and interest requirements of all First Lien Obligations an amount at least equal to twenty-five per cent of such requirements. The City of Delray Beach further irrevocably covenants, binds and obligates itself not to sell, lease, encumber or di'spose of either system or any substantial part thereof until all of the First Lien Obligations have been paid in full as to both principal and interest, and further covenants and agrees with the holders of said First Lien Obligations to main- tain said Combined Public Utility in good condition and to maintain a continuous and sufficient supply of water for distribution by the Water System. The City further covenants and agrees that every -46- Res. No. 48-72. 172-ZZ officer, agent or employee of the City having custody or control of any of the moneys derived from the opera- tion of the Combined Public Utility shall be bonded by ~.~ a responsible corporate surety in an amount not less than the greatest amount reasonably anticipated to be within the custody or control of such officer, agent or employee at one time. The premiums on such surety bonds shall be paid by the City as reasonable and necessary expense of operation. (F) BILLS. That the City agrees to submit unit bills for water and sewer service to each person or firm liable for the payment of water and sewer charges and not to accept payment for one type of service only. tf any water user shall become delinquent for more than sixty days in the payment of water or sewer'charges, or both, the City 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 reconnec- tion charge of not less than $3.50 , have been paid. A User shall be deemed delinquent if he has not paid the full amount of any bill within thirty days after it shall have been mailed to him. (G) ISSUANCE OF PARI PASSU OBLIGATIONS. That all first lien obligations shall enjoy complete parity of -47- Res. No. 48-72. 6O£ · · 17 2-AAA lien on the revenues of each system despite the fact that any of said obligations may be delivered at an earlier date than any other of said obligations. The City of Delray Beach expressly covenants and agzees that it will issue no other bonds or obligations of any kind or nature payable from or enjoying a lien on the revenues of either system prior to or on a parity with the Bonds herein authorized. The provisions of the above paragraph are subject to the exception that if prior to the payment of the Bonds herein authorized, it shall be found desirable to refund any First Lien Obligations, said obligations ,or any part thereof may be refunded with the consent of the holders thereof (except that as to matured obliga- tions or obligations which have been properly called for redemption, such consent shall not be necessary) and the refunding obligations so issued .shall enjoy complete equality of lien with the portion of the obligations 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 obligations refunded, provided, however, that if only a portion of the outstanding First Lien Obligations is so refunded, no refunding obligation may bear interest at a rate higher or mature at a date earlier than the -48- Res. No. 48-72. 172-BBB obligation refunded thereby without the consent of the holders of the unrefunded portion of sa~.d First Lien Obligations. The provisions of the second above paragraph are subject to the further exception that the City may issue additional obligations on a parity with the 1961 Bonds, the 1962 Bonds, the 1963 Bonds, the 1965 Bonds and the Bonds herein authorized upon compliance with all terms and conditions set out for the issuance of such parity obligations in section 12 of the Water Revenue Certificate Ordinance. , Upon retirement of all 1961 Bonds, such addi- tional obligations may be issued if all the following conditions are met: (a) The average annual net revenues of the Combined Public Utility 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 inter~st and principal requirements for any succeeding Fiscal Year on all First Lien Obliga- tions then outstanding 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 Combined -49- Res. No. 48-72. 172-CCC Public Utility remaining after there have been deducted therefrom the reasonable expenses of operating and main- taining the Combined Public Utility. If during the aforesaid two completed Fiscal Years rates imposed for "~ services furnished by all or any part of said Combined Public Utility shall have been increased the engineer who is serving as the consulting engineer for the Combined Public Utility 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 (75%) of the additional net revenues which in his opinion,. based on such determination, would have been derived from the operation of the Combined Public Utility 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. If the average annual net revenues of the Com- bined Public Utility 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 of all First Lien Obligations then outstanding and the obligations so proposed to be issued, there may -50- Res. No. 48-72. 172-DDD also be added to the net revenues of the Combined Public Utility for the two completed Fiscal Years immediately preceding, for purposes of the above computation,' _ seventylfive per cent (75%) of the additional net revenues estimated by the aforesaid engineer to be re- ceived by reason of the operation of such additional facilities during the first two completed Fiscal Years following the placing in operation of the additional facilities to be acquired with the proceeds of such addi- tional obligations. If there shall be pledged to the payment of such additional 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 than the sale or purchase of water or water services) there may also be added to the net revenues of the Combined Public Utility for the two completed Fis6al 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 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 -51- Res. No. 48-72. 172-EEE 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 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, ex- tensions, renewals, replacements or repairs to the Com- bined Public Utility or refunding any junior lien obligations hereafter issued for any such purpose or refunding any or all of the $1,100,000 Utilities Tax Revenue Certificates, Series 1962, .which the City has i~sued for paying the cost of certain improvements to the Sewer System. It is hereby declared that the foregoing condi- tions show the intention of the corresponding provisions of the Water Revenue Certificate Ordinance, the 1961 Bond Resolution, the 1962 Bond Resolution, the 1963 Bond Resolution and the 1965 Bond Resolution to the extent not in conflict with the rights of the holders of the 1961 Bonds and the 1962 Bonds, said provisions shall hereafter -52- Res. No. 48-72. 172.-FFF be so interpreted. (H) NO CO~.~ETING FRANCHISE AND RELATED COVENANTS. That so far as it legally may, the Cit~ of Delray Beach covenants and agrees for the protection a~d security of the First Lien Obligations: (a) That it will not grant a franchise to any competing Water System or Sewer System to operate in the City of Delray Beach until all First Lien Obligations have been retired,~ (b) That so long as any of the First Lien Obligations remain 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 hereafter in the City or served by either system. ·' (c) That the owner, tenant or occupant of each lot or parcel of land within the City of Delray Beach which abuts upon any street or other public way containing a sanitary sewer, which is served or which can be served by the Sewer System and upon which lot or parcel a building shall have been constructed for residential, commercial or industrial use shall connect such building -53- Res. No. 48-72. 17 ~-GGG with such sanitary sewer and shall cease to use any other method for the disposal of sewage, sewage waste or other polluting matter. All such connections shall be made in accordance with rules and regulations which shall be adopted from time to time by the City Council, which rules and regulations may provide for a charge for making any such connection in such reasonable amount as the City Council may fix and establish. (d) 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 Water System, the pro- deeds of such tax shall be considered part of the revenues of said system for the purposes of this resolution, and such proceeds are hereby made subject to the same pledge herein made as other revenues of said system. (I) SALE OF BONDS. That the Bonds 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. (J) REMEDIES. That in addition to all other rights enjoyed by the holders of the First Lien Obliga- tions, such holders shall have the right by mandamus or other appropriate suit or action in any coUrt of competent -54- Res. No. 48-72. 172-HHH jurisdiction to enforce his or their rights against the City of Delray Beach, the governing bcdy 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 resolution contained. (K) MODIFICATION OF RESOLUTION. That the holders of seventy-five per cent (75%) in principal amount of the First Lien Obligations at any time out- standing (not including in any case any obligations which may then be held or owned by or for the account of the ~ity, but including such refunding obligations as may be issued for the purpose of refunding any First Lien Obliga- tions if such refunding obligations 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 resolutions or ordinances modifying or amending any of the terms or provisions contained in this resolution, the 1961 Bond Resolution, the 1962 Bond Resolution, the 1963 Bond Reso- lution, the 1965 Bond Resolution, or the Water Revenue Certificate Ordinance in the manner and to the extent set out below. This right, however, shall not be construed to authorize the amendment of the Water Revenue Certifi- cate Ordinance, the 1961 Bond Resolution, the 1962 Bond -55- Res. No. 48-72. 172-II] Resolution, the 1963 Bond Resolution or the 1965 Bond Resolution without obtaining the consent of 75% in princi- pal amount of the holders of the Bonds outstanding under said 1961 Bond Resolution, said 1962 Bond Resolution, said 1963 Bond Resolution and said 1965 Bond Resolution. No .modification hereunder may: (a) Make any change in the maturity of any of the First Lien Obligations. (b) Make any change in the rate of interest borne by any of said obligations. (¢) Reduce the amount of the principal or redemption premium payable on any First Lien Obligations. (d) Modify the terms of payment of principal or of interest or of redemption premiums on the First Lien Obligations or any of them or impose any conditions with respect to such payment. .. (e) Affec~ the rights of the holders of fewer than all of the First Lien Obligations then outstanding. Whenever the City shall, propose to amend or modify an ordinance or resolution 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 -56- Res. No. 48-72. 172-Jjj Chicago, Illinois. Such notice shall briefly set forth the nature of the proposed a~mendment and shall state that a copy of the proposed amendatory ordinance or resolution 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 First Lien Obligations then outstanding as in this section defined, which instrument or instruments shall refer to t~e proposed mmendatory ordinance or resolution described in said notice and shall specifically consent to and approve the adoption thereof, thereupon but not otherwise, the Council may adopt such amendatory ordinance or resolution and it shall become effective. If the holders of at l~ast seventy-five (75%) in aggregate principal amount of the First Lien Obliga- tions outstanding as in this section defined; at the time ~of the adoption of such amendatory ordinance or resolution, or the predecessors in title of such holders, shall have consented to and approved the adoption thereof as herein provided, no holder of any First Lien Obligation whether -57- Res. No. 48-72. 172-KKK or not such holder shall have 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 resolution'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 First Lien Obligation 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 first lien obligation during 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 first lien obligations outstanding as in this section defined have, prior to the attempted re- vocation, consented to and approved the amendatory Ordinance or resolution referred to in such revocation. The fact and date of the execution of any instru- ment under the provisions of this section may be proved by -58- Res. No. 48-72. 172-LLL the certificate of any officer in any jurisdiction who by the laws thereof is authorized to take acknowledgments of deeds within such jurisdiction, that the person sign-. _ ing 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 First Lien Obligations 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 first lien obligations described in such certificate. (L) VALIDATION. That Robert Fellows, as attorney for the City of Delray Beach, is hereby author- ized 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 Bonds, and the Mayor and City Clerk are hereby authorized to sign any pleadings in such proceedings for and on behalf of the commission of the City of Delray Beach. (M) SEVERABILITY OF INVALID PROVISIONS. That if any section, paragraph, clause or provision of this resolution shall be held to be invalid for any reason, -59- Res. No. 48-72. 17 2 -M~_M such invalidity shall not affect the validity or en- forceability of any of the remaining provisions hereof. (N) REPEALER. That all resolutions or orders or parts thereof in conflict herewith are to the extent of such conflict hereby repealed. Passed and adopted on this the llth day of September,'1972. ATTEST: ~ City Clerk~ -60- Res.No.48-72. 172 -NNN ORDINANCE i'~O. 29-~72. AN OilOINANCE OF THE CITY COIINCiL OF THE CITY OF DELRAY ~EACi{, FLORIDA, ANNE].[I~<G TO THE CITY OF DELRAY iT. EACI! CERTAIN LI~DS LYING IN SECTION 7, TOWNSHIP 46 SOUTH, RANGE A3 EAST, WHICH LAI~[DS ARE CONTIGUOUS TO E~[ISTING MUNICIPAL LI~ITS OF SAID CITY; REDEFINING THE BOUNDARIES OF SAiD CITY TO INCLUDE SAID LANDS; PROVIDING FOR 55~iI~] RIGHTS AND OBLIGATIONS OF SAID LANDS; AND PROVIDING FOR THE ZONING THEREOF. WHEREAS, ELWYN L. MIDDLETON, as ~Trustee, and MIC~IAEL SUSIK, are the fee simple owners of the lands hereinafter described; and, WHEREAS, MELVIN I. ~rJROFF, duly Authorized Agent, in behalf of Elwyn L. Middleton, as Trustee, and Michael Susik, has petitioned and given permission for the annexation of said lands by the City of Delray Beach; and, WHEREAS, the City of Delray Beach has heretofore been authorized to annex lands in accordance with Section 185.1 of the City Charter of~ said City granted to it by the State of Florida; and, WHEREAS, the annexation of these lands hereinafter described were considered by the Planning and Zoning Beard at its meeting held on August 8, 1972, with recommendations as follows: Tract 1. That this 210.47 acres be annexed subject to a 100 foot strip East along Davis Road as R-1AAB zoning with the remainder of the property being zoned RM-2, with the stipulation that the RM-2 zoned property be rezoned to RM-15 upon establishment of this new zoning district. Tract 2. That this 1.85 acres be subject to C-3 zoning; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. .That the City Council of the City of Delray Beach, Palm Beach County, Florida, hereby annexes to said City the following described lands located in Section 7, Township 46 South, Range 43 East, Palm Beach County, Florida, which lie contiguous to said City, to-wit: Tract 1. All that portion of the East Half (E. 1/2) of Section 7, Township 46 South, Range 43 East, lying West of the westerly right-of-way of Congress Avenue as laid out and now in use and North of the northerly right-of-way of Lake Ida Road as shown on plat of DELRAY SHORES, sheets 1 and 2, recorded in Plat Book 24, pages 232 and 233, Public Records of Palm Beach County~ Florida; LESS the righh-of-way of Lake Worth Drainage District Lateral Canal No. 30. Containing 210.47 acres more or ].ess. Tract 2. That portion of the Southeast Quarter (S.E. 1/4) of Section 7, Township 46 South, Range 43 East, lying East of the easterly right-of-way line of the Seaboard Air Line 172-O00 Rai. lway anal North of the northerly right-of-way line of the Lake Worth D~/~-~inage District L~teral Canal No. 32. LESS the easter[l.y .15 feet thereof for the right- of-way of State Road ?[o. ? as shown in Road Plat Book 2, page 34, Public Records of Palm Beach County, Florida. Containing 1.85 acres more or less. Section 2. That the boundaries of the City of Delray Beach, Florida, are hereby redefined so as to include therein the above described tracts of land, and said lands are hereby declared to be within the corporate limits of the City of Delray Beach, Florida. Section 3. That the lands hereinbefore described are hereby declared to be in zoning districts outlined as follows: Tract 1 subject to a 100 foot strip East along Davis Road being zoned R-1AAB with the remainder of the property being zoned RM-2 as defined by existing ordinances of the City of Delray Beach, Florida, with the stipulation that the RM-2 zoned property be rezoned to RM.-15 upon establishment of this new zoning district. Tract 2 to be in Zoning District C-3 as defined by existing ordinances of the City of Delray Beach, Florida, with the stipulation that it be rezoned LI upon establishment of this new zoning district. Section 4. That the lands hereinabove described shall immediately become subject to all of the franchises, privileges immunities, debts, obligations, liabilities, ordinances and laws to which lands in the City of Delray Beach are now or may be, and persons residing thereon shall be deemed citizens of the City of Delray Beach. Section 5. That if any word, phrase, clause, sentence or part of this Ordinance shall be declared illegal by a court of competent jurisdiction, such record of illegality shall in no way affect the remaining portion. PASSED and ADOPTED in regular session on the second and final reading on the day of , 1972. MAYOR ATTEST: City Clerk First Reading. August 28, 1972 Second Reading - 2 - Public Hearing September 11, 1972. ORD. No. 29-72 172-FPP ORDINANCE NO. 30-72. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OP DELtLAY EEACH, FLOkiDA: A~.:~TqEXING CERTAIN i~-UBLIC ~...].GH~.-Oz-~^,AY K~!OWN AS FOREST DRIVE BEING iN SECTION 24, TOWNSttIP 46 SOUTH, PCA/,IGE 42 EAST~ WHICH IS LOCATED IN T}iE DELRAY BEACH RESERVE AREA. WHEREAS, the City Council of the City of Delray Beach, Florida, has previously been authorized to annex real property - that is public or quasi-public which is not subject to ad valorem taxation; and, WHEREAS, the City Council of the City of Delray Beach deems it to be in the best interest of the City to annex certain road right-of-way for the purpose of traffic control on a public street which is surrounded by property within the City limits; 5~OW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. The City Council of the City of Delray Beach hereby annexes the following described right-of-way to said City: A strip of land being a part of the dedicated right- of-way of Forest Drive as recorded in the Official Records Book 1181 at Pages 552 to Pages 555 inclusive, Palm Beach County, Florida; and lying in the Northwest Quarter (N.W. 1/4) and the Southwest Quarter (S.W. 1/4) of the Northeast Quarter (N.E. 1/4) of Section 24, Tovmship 46 South,Range 42 East; all being and lying in Palm Beach County, Florida. Commencing at the Southwest corner of the NOrtheast 1/4 of Section 24, Township 46 South, Range 42 East; thence run North 89° 00' 02" East along the South line of the Northeast 1/4 of said Section 24, a distance of 44.66 feet to the point of beginning of the parcel of land hereinafter described; thence run North 01° 28' 56-:~' ..... West, a distance of 154.68 feet to the'point of curvature of a circular curve concave to 'the Southeast having a radius of 1949.86 feet; thence run North- easterly along the arc of said curve an arc distance of 816.76 feet through a central angle of 24° 00' 00" to the point of tangency; thence run North 22° 31' 04" East, a distance of 512.37 feet to the point of curvature of a circular curve concave to the Northwest having a radius of 1869.86 feet; thence run Northwest- erly along the arc of~ said curve an arc distance of 748.56 feet through a central angle of 22° 56' 14" to the point of intersection with the South line of the North 524.00 feet of the Northwest Quarter (N.W. 1/4), Northwest Quarter (N.W. 1/4) of the Northeast Quarter (N.E. 1/4) of said Section 24; thence run North 89° 27' 05" East along said South line of 'the North 524.00 feet of the Northwest 1/4, Northwest 1/4, Northeast 1/4, a distance of 80.00 feet to the point 172-QQQ of].~'~.~.~-,~:~._ ~.~,,~, ,~,.~it].: ~?~ curve conc~ve to the ~.~orthvzest having a radius of lf~x~9.86 fer3t; thence run South- westerly along the arc of said curve an arc distance of 780.77 ~_eet- throu. 9-h a centz'al,, angle of 22© 56' 33" to the point c,f tang.c, ncy; thence run South 22° 31.' 04" West, a distance of 512.37 feet to the point of curvature of a circular curve concave to the South- east having a radius of 1869.86 feet; thence run Southwesterly along the arc of said curve an arc distance of 783.25 feet through a central angle of 24© 00' 00" to the point of tangency; thence run South 01© 28' 56" East, a distance of 155.35 feet to a point of intersection with the South l~ne of the Northeast 1/4 of said Section 24; thence run South 89© 00' 02" West along the South line of said Northeast 1/4 of Section 24, a distance of 80.00 feet to the point of beginning. Containing 4.09 acres more or less. Section 2. The corporate limits of this City is hereby amended to include the aforedescribed property. PASSED and ADOPTED in regular session on the second and final reading on the llth day of September , 1972. ATTEST: First Reading August 28, 1972 Second Reading September 11, 1972 - 2 - ORD. No. 30-72 17 2-RRR