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01-29-62SpMtg JANUARY 29, 19&2. A epeciml meeting was held in the Council Chambers at 8:00 P.M., withMayor Walter Dietz in the Chair, City Manager Louis~. Smitzes, City Attorney John Ross Adamsand Councilmen A1 C. Avery, George Talbot, ~., George V. Warren and OliVer W. Woodard, Jr., being~ present. An opening prayer was delivered by Councilman A1C. Avery. Mayor Dietz then spoke as follows: "I wish to give you the various reasons of why this special meeting was called by the Chair to request the Council to order a Special Election of the voters so that they might express their opinio~ as to Which type of sewer they wish. As you know, the Supreme Court of the State of Florida is soon to rule on the validity of the bonds for a sewer system for Delray Beach. This ruling could be'.e~ther for or against the validation. We should bear that in mind. The people have not had an opportunity to be heard on the matter of sewage. It is~ the people of Delray Beach who should assume the responsibility for the choice and not the~Council The Council should carry ~out the wishes of the people, and right now no one ~nows what the Wishes of the people are. If the people would vote, expressing a desire for the present proposed sewer system they will have it. They will have it exactly as it is in the blue prints right now. If they would vote ex~ressing a desire for the expanded outfall system, it is important to knowright now, for,in reality,this would only mean the next step to be taken would be taken now instead of a few years from now. This would be in line with the previous Council,s wishes, only added now, would be the next step which they too had planned to follow after the proposed activated sludge plant had been built. By taking the two steps now simultaneously, much would be gained financially~and the additional expense of the acti- vated sludge ~oute 'could bo saVed. Delray"Beach is entitled to a Bond Rating of "A". It is suggested that absolutely no money be spent on this until the people, have spoken. If they vote for the simple outfall 'system, then the Council could hire the best and most capable fiscal agents so as to reduce the burden onthe individual taxpa~s~ both by way of front foot' assessment and service Charge. Now,please bear with me as we review some of the pertinent facts and reasons that may have become lost from view during all of this dis- cussion. No. 1. The Planning and Zoning Board is believed to be 100% in favor of an o~tfall system. Mind you this, please, if you can believe it, the Planning Board has never been asked to attend any meeting on the sewer in their official capacity or were they even asked their re- commendations officially. Everyone seems to have great confidence in the present Planning and Zoning Board,and I wish you would please tell me why we should not listen to their recommendation and give those re- commendations serious consideration. No. 2. .Plans for the simple outfall is what the consulting engineers unccnditionally recommend. They were asked to change to the more cost- ly method, namely activated sludge. Eo. 3. With the activated sludge system, private property will be depreciated whereas,with the simple outfall recommended by the con- sulting engineers taxpayers' homeproperty will not be depreciated. No. 4. Our City Engineer is 100%for the simple outfall system. I've got great confidence in our City Engineer. I think his opinions should be listened to carefully and heeded. No. 5. The State of'Florida endorses the outfall system.lO0% and the Chief Sanitary Engineer David Lee,who was down here,endOrSes the out- fall system 100%. I think it was with a little difficulty that he went alon$ under the present situation. · No. 6. The ~onsulting engineers informed the Council at Our meeting. On January 24th, 1962, thatthe contracts'already let,~ln their opinion, were not an~0bstacle,if the city decided to build .an expanded outfall system now. No. 7. The larger System would allow much smaller charges per front foot of lot lines and smaller service charges per monthfor lines in- stalled to provide additiOnal services. 1-29-62 24¸ January 29, 1962 No. 8. No large tanks or drying beds would be needed. ~ No. 9. The outfall system al'lQwa for better elimination of odors. No. 10. No refuse to haul away with an outfall system. You will be hauling.to the end of time with an activated sludge system. No. ll. Everything once in the sewer goes into the ocean without handling, consequently it,s a cheaper method of sewage disposal and the only thing removed is the grease and ~he fats. No. 12. This is a ve.~y ve~y vital'point. The pipe will be a large size pipe if it were an outfall system, 36". The cost of laying of the pipe is mostly labor, etc. The cost of the material in the pipe is insignificant proportionately so that a small pipe would not be significantly lower in cost. With a pipe of the size that is proposed, namely 36","it will serve Delray regardless of its future growth, without further expense. Slight additional pressures result in a limited capacity, increased capacity, to serve Delray Beach for years and years to come,~thus eliminating the large additions of costly tanks under the other system. We have a pretty good turn out here tonight and before I finish up here. I would like a show of hands of those people present here tonight who arc'against the present system. Those that are for the present system. Nobody for and those 'that ~oted against are 100% unanimous. Delray Beach is at the cross roads of a decision, and the only thing that this Council is deciding tonight is,not the efficacy of one system or another, but just the sim~le ~ssue 'Let the citizens of Delray Beach be given an opportunity to expr~ss their opinions' and, consequently,I say that De]ray Beach is at the cross roads of de- cision. Please, Gentlemen of the Council, let the people decide by supporting a Special Election. Thank you for.your patient attention, and the floor recognizes Paul Knowles if he. will come up and have something to say." Paul Knowles: "I cantt add.~much~to your request as I stand here be- fore you. A few days ago .the Planning Board decided to hold a meeting on Wednesd'ay night.to attempt to. come to s.ome, sol~tion, or in lieu thereof,at leae~t a recommendation for this pr.pg~am. The first time that the Planning Board has had any contact with this issue was only last week, and only. this morning, rather late,was I notified that this meeting---I knew~the meeting was in session, but I wasn,t quite clear as to i~s purpose,-~-~attempted to gather together the Planning Board at' ~:30 ~.M.,~ln~an attempt to.at least offer you some conclu- sions in this matter,but I'was unable to gather togethe~more than three, and I believe the Board will sti~ll meet on Wednesday night. I hope they will, and I know that we're certainly willing and .ready to do what we can, as far as the City.Council-is concerned,in the problem. Getting to the problem, i don't want to get into detail because I only speak alone in this particular instance, but I can't conceive in a broad sense of a Planning Board endorsing a partial program',nor do I think.that that statement would be in conflict with the wishes of the previous Council with regard to the general program of the City. The details of that program, the engineering of that program and all,I believe,is a little beyond our scope. The location, and maybe certain phases of the program or its relationship to the Community, is something that~we can help with, but the engineering of the situation,I am sure,is beyond our scope." Mayor Di~tz: "I ha~,.-without consulting yoR, put down here the Planning/Zoning Board is believredto be lO0% in. favor. Whe~ I attend- e~ your meeting the other day, I gathered that there were no objections, although that was not a main issue.~ Mr. End, les: ~'That may be an assum~tion, Mr. Ma~,. but until we endorse o~..give a statement to the Council directly, I believe maybe that shoul~ be.withheld. Wemay,or we may.not,go to that degree of 100% endorsement." Mayor Dietz: "Were my other statements correct, that this is the £imst time that the Planning Board has come in on this?" Mr. Knowles: "I believe that the first time ie last week when I attended a meeting of the engineers and Council~was the first time, to my knowledge, that the Planning Board~.~had been included in any conversation pertaining to the sewage treatment system." -2- 1-29~62 January 29, 1962 Mayor Dietz: "Thank you.' That is the point I wanted to drive home because it is utterly inConcd~vable to me that the'City of Delray. Beach would ge ahead with such a large progra~ and not even consult. the Planning Board." Mm. Wooda~d'stated that..it was gratifying to be serving on a Council where the Mayor' and each individual Councilman are leaving no stone unturned in trying to solve the city,s capitol improvement program, but'that it is disappointing to him tonight that this-meet- ing has been called at this time in "~-w. of the fact that the State Supreme Court is now ruling on an action that the City has already taken, and further stated that he felt no action to be warranted until after the Supreme Court had ruled either in favor of or against the validation of the Bonds which have already been signed. M~. Woodard then moved that any further action by the Council be tabled until such time as word is received from the Supreme Court as to their de- cision. The motion was seconded by ~.~. Warren. ~'. Avery asked of the City.Attorney: "Would the position of either side be prejudiced in the eyes of the Supreme Cot~rt if the people elected one way or the other in this thing?" City Attorney Adams: "I don't think the Supreme Court would know about it, so,therefor% there would be no prejudice." Mm. Woodard explained that his motion means that any action by the Council at this time would be improper :n that the City has committe~ itself to a specific course of action. Upon call of roll, Mm. Warren and Mr. Woodard voted in favor of the motion, Mm. Avery and Mayor Dietz were opposed and Mm. Talbot abstained from voting. The motion did not carry. Mm. Avery then moved that this Council schedule a Special'Election for February 12th to allow the people to decide which of the two systems they want, the motion'being seconded by Mayor Dietz. Mr. Warren then commented as follows: "All that you read i.n your twelve stipulated items are true. The City Council, not only last year but the yesm before, entered into discussion with engineers, engineers who we had used before, had Confidence in and the first program that was brought before us, all within the legal right of the Council, all Within .our l~gal right to reach a decision on behalf of the Ci~ of Delray Beach without any referendum, is to our best Judgment for the benefits of the .citY, entered into this discussion and the sewage program was brought before us with a choice of an out- fall with the cost at that time of approximately ~1,800,000.00 for the actual pipe laying, labor, etc., as you mentioned to take care of 997 urgent hookups in the down town area who have been putting raw sewage into down town sewer pipe for the past twenty years ten of which there has been no treatment ~,atsoever. The~ of course, we got together with the fiscal agents---that r'equires two or three to seven or eight meet- ings. We!we had four, five or ten with the engineers. They came up with a figure of $3,200,000.00 as the first step of a part of the city being properly sewered. The fiscal agents, at that time, said and this was their first conclusion; 'In order to do that,it will be 'necessary for you at the time that you let your contracts and accept and sign he bonds~ that you start charging people down town at the rate of 2.60 or ~2.75 per connection with p~evailing lower ~ates for the more connections they have in these places of business or homes.' But, they made one provision then---in order to finance this thmee million plus program it would be necessary for us to start charging the connectS8 people down town, .the 997 users, immediately at the time the contract was signed so that there would be sufficient revenue to help carry the load of interest expense in particular on the bonds during the period of construction which usually takes a year to a year and a half. Also. in that p~ovision of the fiscal agents at that time, was a p~ovision t~at we would have to commit our utility taxes. We have cigamette utility tax, We'~have-the power & light company and gas utility taxes, fo~ which a check was handed to. us the first Of the year from the power company for ~52,000.00. Any city, in ~ to keep their financial standing, does not like to endanger 'their %~ity taxes. -3- 1-29-62 January 29, 1962 They like to keep them fluid to .meet emergencies and. use .for other smaller financing. That is what the Council was. faced with at that time,of .starting an immediate charge down town., to 997 customers who would not have any treatment for their .sewage for a year and a half. until the engineering had been completed, Of course at that time that entailed expanding out throughout probably .two thJ:rds of the city with your lateral lines running up and down the lots at a charge of $~,00, and that $4.00, T don't~believe,was Just. grasped out of the air. It was concluded by engineers, our own City Engineer, in determining what it would cost to run lateral ..lines out and beyond where these present lines are now, under where we are sitting, and particularly down town. .Ail hell broke loose down' town where the sewer pipes are now, because the people could not fathom, could not see the fact that they would start paying $2~75, $4.50, $8.32 and. $9.67 a month in order. that we might have that overall sewage program, and start paying under construction so that there would, be some money available to help pay the tremenduous cost of floating a ~3,000,000~00 bond issue. If you bear in mind, folks, that could either be a 4.00 or 4.50, like we got our 3.90 recently which is low figures in financing for the $500,000.00. i think at that time it was about ~.~0. That's $150,000.00 a year for interest alone, if the city had toput forth during the construction period of this overall city program. We did, as I say, get a terrific reaction from people who were involved and ~who ~ere going to have to start paying. That, and the fact that we had to commit our utility taxes. We did not desert the city in any sense of the form in the type of sewage that they should have, always having in our mind that-- frankly the majority of the Council .... I third, I can say it .... an out- fall sewer program as being the most feasible being close to the Gulf- stream where it can be used to the greatest advantage in this area and in the safest possible manner, although I am now being told that is not as safe as we might have thought it, from experiences in Calif. Then we come back and said it's down on that, due to public opinion which your Council is judged by and judges by, believe it or not, for their good interest. We come back and said what can we do, we~ve got to get rid of this immediate raw sewage problem in this down town area, from 4th Street South to 4th Street North and Swinton Avenue to the Waterway. The engineers came back and said here is one way you could do it. You can put in this plant, they estimated the cost .between $450~000.00 and $500,000.00. There was meeting after meeting on that as tO why we should pull in and go to that type of plant, that type of treatment to eliminate this down town raw sewage p~gram, and we enter- ed into it and discussed it and understood it for ~he .one purpose only, and the fact of the cost of financing the.$3,000,000~O0 program was not good economically for the city at the time. If you recall, and it did have something to do with our thinking at the time, is the war con- ditions, turmoil throughout the world and the thing that we read about everyday in the papers, the nea~ness of Cuba~ to us and their communis- tic state, etc. Those things affect our people, their thinking and the economy of the area, therefore,they say upon the recommendations of the engineers, not the acceptance of our City.Engineer because he whole- heartedly thought~-,-well, it's only money, the City of Delray Beach property .... I don,t say he thought this, but it could be the thinking, and 'people can think that way too. I know a Councilman that probably does, but it's only money. It's only the City's money, it's~ly the taxpayers money. Sure, you wish you could put these things t~ effect by revenue, but you have to have the revenue, then you have to go out and expand in the areas, put in the lateral lines, charge assessments to the property, force people who are in ~the little cottages up and down and north and south in this particular area to hook onto their septic mtS~nks. These lines which could cost them anywhere from $450.00 to $700.00. Those are the things ~that helped us arrive at the fact that we will put in this plant. This plant is part of an overall sewage program. This plant is needed when you put in an outfall. Future Councils of the City of Delray Beach can and we recommend, I did and the majority of the Council, that they consider the outfall program first in their future expansion of the Sewage Program some three, four or five years from now an% i~n .the meantime, it would save three or four hundred thousand dollars in interest on the bonds that would have had to be issued and, when this plant gets into operation, it provides for one thousand more customers. It provides for enough extra hookons that, if you took by customer oount and .said I'll take one hundred of those hookons,, run a line out to the Industrial Center, and you can have your industrial plant out there with this present plant that we are putting in. ~_ll of those things were taken into consideration. 4- 1-29-62 2? January 29, 1962 The people down town of course are not assessed for runni~ the later- al lines. Anywhere north of North 4th and south of South 4th will be assessed~for the lateral lines running in front of their house. Ail that is involved as far as the people in th.e present sewage area the fact that they are going to be charged ~2.75 or $2.40 minimum if they have one tap. or if they have three or four it will be proportion- ately higher and bhat is the only objection tha~ I can see that prompt- ed you people to raise your hand tonight, is the fact that you are go- ing to be charged ~4.00, $5.00 0r. 07.00 a month to eliminate'a raw sewage program. Now, Mr. Mayor, I respectfully unders.tand that you have every reason to ..call this meeting. However, you advised us in our first preliminary meeting that there would not be any special meetings, that there would not be any called meetings, that no Councilman 'could issue a meeting of any kind unless there was two weeks, notice and that during that two weeks time we would study any thing that came before the Council and act on it at a regular meeting, yet you take it upon yourself to call a special meeting, you prepared a program, you didn,t even call a preliminary meeting. I don't think it is in very good order. Thank you." Mayor Dietz: "The only comment I .have to make to what Mr. Warren said is he's very sincere. I know that he means what'he says, however, the system that I am talking about, while I couldn't be held to that now, the per foot cost is around $2.00 and not $4.00 and the service charge will be less than the service charge that is now a service charge, but that isn't the issue tonight. The issue tonight is whether the people can vote on a sewer program." ~fr. Talbot stated that he gathered from the last meeting that this subject would remain status quo until tho Supreme Court acted on it, also that he favors a Special Election but felt there should be more discussion by the Council concerning same. Mayor Dietz further explained that this is a very simple issue, not being complicated as to 'the mechanics of a sewer system of one. kind or another, that the issue is whether the citizens of Delray Beach will be permitted to express their wish regardin~ a sewer system. Mayor Dietz also stated that he didn, t see how the Council would ever get to the point of disregarding the view point of the very people that elected them. ~Lr. Warren: "What effect will a referendum have as to the conclusion of the last Council if the Supreme Court validates the bonds and the contracts we have entered into?" Mayor Dietz: "If the Supreme Court validates the bonds, and the people vote that they want the present system, that's what I had refer'ence to when I read here, 'If the people would vote expressing a desire for the proposed sewer system they will have it, and they will have it Just in accordance with the blue prints, and no change..what-so-ever because the money will be there and the validation of the bonds and if the people, want that sys~.~m the people are entitled to that system and even A1 Avery will have to shut up." ~r. Avery stated that he had constantly promised the people that he would do everything within his power to have a referendum on this and give them the chance to express an opinion and further st'ated that he felt that he. needed the.people~,opinion on this extended' system be- fore it is pursued further,~ and that is the type of thing that~the people should be allowed to vote on. Mr. Warren asked of Mr. Avery: "If the~ people vote 'no' on the re- ferendum for sewerage, what are you going to do with the contracts that four of us let in good~ faith for the interest of the City of Delray~ B~ach?" · Mr. Avery: "If the people vote, the vote will be to let the people vote on the system as the previous Council designed it, or the next step which includes that system but modified to the next step, which doesn't eliminate any thing the ~last Council has done, and frankly,it can be done, and be done very properly, if the people elect to extend the system. It's impossible to~ vote no on any sewer~ system because you and I both know that we are under the State Board of Health man- date to do something about the raw sewage. T~e ide~ is not for the 1-29-62 January 29, 1962 people to eliminate anything,.but to incorporate this system which you have dedicated yourself to., but with 'the next step, that the public might or might not desire, and this is what I need to .know .... whether to go along with what's been done, or as the Mayor so aptly expressed M~. Warren said that% if a referendum is held, he felt it should not be until after the Supreme Court had ruled', then have the contractors Join in the discussion to see what changes could~be made to allow for a different operation if the people.voted for the extended system. Mayor Dietz assured Mr. Warren that there was no thought behind this to'embarrass 'a former Council, "and as far as a referendum, the people would have the ~choloe of what has been offered to them or what the engineers recommended. It was. called to the Mayor,.s attention that the outgoing Council recommended an. extended sewer prograr% but felt that it was too ex- pensive at this time. Mayor Dietz stated that in reality this would only mean that the next step to be taken would .be taken now instead of a few years from now, as the previous Council. had intended. Further that he felt it. was very important thmt the people empress themselves, now before the Supreme Cou~t ruled, as he had .been' told that the contracte would, be let within ten days after the ruling, and time Would .be important. Mm. Talbot: "If there is a referendum held, and if the people wish the extended outfall' system, extended sewer-coverage, and fl' the bonds are validated, does this COuncil have 'the perogrative of changing the set-up? I would like to have that established because' that I am not as yet clear on." Mayor:Dietz;:- "Two things involved. The bonds and the contracts, right? '.As' f~r the contracts, I would like to call on .Mark Fleming as he was present at the meeting when the Engineering ~firm was dowr~ and they made a remark of what they thought they could do in line with the present contracts. 'I will. ask the Attorney the same question? · ~ ~ Mr. Fleming: "The engineers statement was, as I recall it, that the present contract could be altered by 'legal change order or by legal negotiations.to provide for the extended altered outfall line.. As far as the bids on the present contract , they are taken on the unit price basis which could be extended directly by that unit price. Part of it was on a lump sum and would have to be altered .by change orders~ The contraCt.-.~s said they thought' no difficulty would be presented .... the en6ineers made that statement." Mr. Warren: "I challenge that, Mr. Mayor, that all bidding has to go out for~bids. I ~will challenge it so long as I-am on~ the Council, on any increased facility." Attorney Adams: "I think I see the point of the problem. Who has the contract for the treatment, plant? Harry Pepper, Would there be changes in. that? , Mr. Avery:~" "There would be someich~nges~.but' .they would be' modifi- cation changes and'. would mean the elimination' of Slud.ge' beds and the Edenbacken pumps. There wouldn't ~be a'?~whole l'ot of change in the overall cost." City Attorney: "I ~hinkwe ought to.get fu'~ther infor~atior% and be- fore I answerl'that questior% T-..have tO talk to the eons'ult~ng engineers, and possibly the contractors, too," . ' Mayor Dletz: "Would I be correct.in saying, Mayor Warren, that if the people wanted something, that we'.will ~try .and give it to them, but if it were impossible legally 'to give ~'them 'what the2 'wanted, thenl think we. would be stymied there, wouldn,~t Wet". Mr. Wo'oda~d stat'ed .that-be£ome the .CoUrt,ii 'could' commit themselves, they.would have to.determine What legals, liability they were .submitting the city to, if the'. ,contraCt'$~.tha',~-ha~e been aigned,-~ere not upheld.. January 29, 1962 Further, that there shouldbe-a written opinion from the attorney as to the legal'liability, prior to taking any action. Mt. Wm. MoLaughlin, Mr. Nathan Sharp and~tr~ ~red Berry commented on the sewage program and proposed Special Election. Mr. Campbell asked Mayor Dietz if he had any fig~mes as to the cost of the next step of this sewage system and commented on the Mayor's reference to a.,simple outfall,, and that it was his under- standing that when an outfall was built,it would take care of the. entire city and its growth. Following further discussion and comments, ~..~. Avery commented: ~Tne engineers, in analyzing our need, they have just finished analyz- ing Boynton's needs, and the Boynton Council has beforethem an autho- rized and official proposal from a financial house which is less than $2.75 a front foot for the front foot assessment and ~pY.00 minimum for the monthly charge. Our minimum now is $2.50, I believe, however, in preparing for this meeting which the Council granted to discuss the sewers last Wednesday, theengineers did get opinions from three finan- cial houses Now these are opinions onlY, and the opinions were that with the audit which was 'then available which wasn,t our last audit and the perspective as presented when we got this last bond thing~ the opinion was that we could improve our position much overthe. system that Boynton had. ~This was an opinion only. Bear in mind that the correct procedure,regardless,would be to call in and interview representatives of the best financial houses available,and see which one would give us the best proposition and analyze from that. Now, I'll ask Mr. Sharp, isn't that the best procedure, as far as financial houses are concerned? Is that right, sir? But !~e opinion from three very fine financial houses, and they were pretty firm opinions, were that we could do better than Boynton, and Boynton got $2.75 a front foot and $2.00 a month minimum, so we are on pretty firm ground that we can assure the ~ublic that we can get as good or better deal than that one up there. Mayor Dietzagain reminded the Council that the only thing before them tonight is --"Shall or shall not the people of Delray Beach, the ones that elected us to this Job, have a right to express .their opin- ions on the kind of a sewer system that they want". ~. Bill Snow co~aended the Mayor on taking the stand that he has concerning the opinion of the people of Delray Beach, in this.matter. ~. Hugh Vogl and Mr. Bill Letour commented on the type of System. There followed lengthy general discussion on the type of system, cost of same, Special Election, and length of time it would take to pay the system out. ~. Avery asked for permission to amend his motion and Mayor Diet~ withdrew his second. I~r. Avery then moved that the people be given the chance to express their desires on whether they prefer the present $500,000.00 sludge treatment'plant as sol~ or to proceed on an ocean outfall system which would not exceed $3,000,000.00. Mr.' Averyfurther commented that this would sewer two thirds of the city and be financial- ly feasible. Mayor Dletz relinquished the Chair to Vice-Mayor Woodard and seconded the motion. Following further comments, City Attorney Adams asked to hear the motion again and Mr. Avery reworded his motion as follows: "That a Special Election be held on February 12th to give the registered voters of Delray Beach an opportunity to express themselves on whether they desire the $500,000.00 program as voted by a previous Council or an extended system including an ocean outfall, not to exceed $3,000,000.00." The motion was seconded by Mayor Dietz. It was~stressed that this is to be~a Special Election and not a Referendum. Upon call of roll, Mr. Avery, Mayor Dietz and ~.~. Talbot Voted in favor of the motion and Mr. Warren and ~. Woodard were opposed. Motion carried. ~ -7- 1-29-62 January 29, 1962 Mm. Avery stated that he had been requested by a citizen who has a critical need for an exception to a set back which will ad~ to the City Beautification, and asked the City AttOrney whethem it is in the realm of the City Council to grant the reques%o~ should it go to the Board of Adjustment, but the City Attorney!s ruling was not available at this time. Mayor Dietz stated that he would like to form a ~itizenslOommittee and get volunteers to assist in getting the voters out to the polls for this Special Election, also that there were individuals in the auaience who had cards to be filled out by these volunteers and that later a list of registered voters wou~d be fu~nished to these volun- teers fo~ them to call regarding the election. _ The meeting ad~ourneO at 9:30 ?~.M., on-motion by Mm. Warren and seconded by M~. Woodard. _.. ROBERT 'D. WORTHING Ci.ty Clerk APPROVED: -8- 1-29-62