Res 97-79 RESOLUTION NO. 97-79
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DELRAY
BEACH, FLORIDA, PROVIDING FOR THE ASSUMPTION OF THE
INDEBTEDNESS REFLECTED IN THE OUTSTANDING REVENUE BONDS
OF THE PALM BEACH COUNTY SOLID WASTE AUTHORITY IN REGARD
TO THE TAKEOVER OF OPERATION AND OWNERSHIP OF THE TRANS-
FER STATION BY THE CITY OF DELRAY BEACH, AND PROVIDING
FOR THE ISSUANCE OF REVENUE BONDS BY THE CITY IN AN
AMOUNT NOT TO EXCEED $360,000.00 FOR SAID PURPOSE AND FOR
THE PAYMENT THEREOF.
WHEREAS, the Palm Beach County Solid Waste Authority (the
"Authority") has heretofore issued its revenue bonds (the "Bonds") to
Barnett Bank of Delray Beach ("Barnett Bank") pursuant to the Authority's
Resolution No. R-78-06 for the purpose of constructing, rehabilitating,
equipping and operating the South County Transfer Station (the "Transfer
Station") in the City of Delray Beach, Florida (the "City"); and,
WHEREAS, the Bonds were issued in an aggregate principal amount
of $525,000 represented by three Bonds as follows:
(a) Bond No. 1 in the amount of $165,000 payable in full as to
principal and interest on September 15, 1979;
(b) Bond No. 2 in the amount of $175,000 payable in full as to
principal and interest on September 15, 1980;
(c) Bond No. 3 in the amount of $185,000 payable in full as to
principal and interest on September 15, 1981; and,
~EREAS, Bond No. 1 has been paid in full by the Authority and is
no longer outstanding; Bonds Nos. 2 and 3 in the aggregate principal
amount of $360,000 are currently outstanding; and
WHEREAS, the Transfer Station is currently operating at a deficit;
and,
WHEREAS, in order to promote the health, welfare and safety of
the City, the City has determined that it is in its best interest to own,
operate and maintain the Transfer Station for the purpose of transferring
the City's solid waste to the Lantana landfill site in Palm Beach County;
and,
WHEREAS, the City has determined to assume the indebtedness of
the Authority in regard to the Solid Waste Transfer Station represented by
Bonds Nos. 2 and 3, as well as all of the conditions and obligations set
forth in a Termination Agreement approved by the City Council of Delray
Beach at its meeting of November 26, 1979; and
WHEREAS, the City has determined in accordance with the Termina-
tion Agreement, to issue its revenue bonds in the aggregate principal
amount of not to exceed $360,000 for the purpose of assuming the indebted-
ness of the Authority represented by Bonds Nos. 2 and 3 and in substitution
of such indebtedness; and,
WHEREAS, Barnett Bank has agreed to the City's assumption of the
indebtedness of the Authority represented by Bonds Nos. 2 and 3 and to com-
pletely release the Authority from any further obligation in regard to the
indebtedness reflected in Bonds Nos. 2 and 3; and,
WHEREAS, the Authority has authorized the takeover and operation
by the City of the Solid Waste Transfer Station and the assumption by the
City of the Authority's outstanding Bonds in regard thereto; and,
~IEREAS, Barnett Bank has committed to purchase from the City its
revenue bonds in the aggregate principal amount of $360,000 at an interest
rate of not to exceed 6.98 per cent per annum and to mature September 15,
1984; and,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That the City shall take over the Solid Waste Trans-
fer Station in accordance with the terms and conditions of the Termination
Agreement approved by City Council at its meeting of November 26, 1979.
Section 2. That there is hereby assumed the indebtedness of the
Authority in regard to the Solid Waste Transfer Station, to the Barnett
Bank in the amount of $360,000 in accordance with the terms of this reso-
lution.
Section 3. That there is hereby authorized the issuance of
revenue bonds of the City in an aggregate principal amount of $360,000 at
an interest rate not to exceed 6.98 per cent per annum, for the purpose of
assuming the outstanding indebtedness of the Authority represented by the
Authority's Bonds Nos. 2 and 3.
Section 4. That the City shall issue ten (10) revenue bonds, for
the purposes set forth herein, in the amounts and with the maturity dates
set forth below:
Maturity
Bonds Nos. Amount Date
1 $36,000 03/15/80
2 36,000 09/15/80
3 36,000 03/15/81
4 36,000 ' 09/15/81
5 36,000 03/15/82
6 36,000 09/15/82
7 36,000 03/15/83
8 36,000 09/15/83
9 36,000 03/15/84
10 36,000 09/15/84
The Bonds shall bear interest from January 1, 1980, and shall be
payable semi-annually on March 15th and September 15th of each year in
which the Bonds remain outstanding.
Section 5. That the revenue bonds referred to in Section 4 above
shall provide that the same shall be payable from the gross revenues
derived from garbage collection fees payable to the City.
Section 6. That the form of the revenue bonds to be issued by
the City shall be in substantially the form of the Bonds heretofore issued
by the Authority.
Section 7. That this resolution shall become effective on
January 1, 1980.
PASSED AND ADOPTED in regular session on this the 10th
day of December , 1979.
''- bi A Y O R~
ATTEST: LEON M. WEEKES
City Clerk
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