Res 11-65 RESOLUTION NO. 11-65.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF DELRAY BEACH, FLORIDA, AUTHORIZING AND IN-
STRUCTING THE FISCAL AGENTS TO PROCEED WITH
THE ADDITIONAL FINANCING FOR SANITARY SEWER
IMPROVEMENTS IN THE ESTIMATED AMOUNT OF
$2,000,000 IN ACCORDANCE WITH A PROPOSAL BY
SAID FISCAL AGENTS DATED APRIL 15, 1965.
WHEREAS, the City Council of the City of Delray Beach,
Florida, deems it in the best interests of the citizens of this City
to enter into an agreement with B. J. Van Ingen & Co. and Goodbody &
Co. employing said companies to act as fiscal agents for the City
relative to additional financing for contemplated sanitary sewer im-
provements in an estimated amount of Two Million ($2,000,000) Dollars;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. B. J. Van Ingen & Coo and Goodbody & Co., as
fiscal agents for this City, are hereby authorized and instructed to
proceed with the additional financing of certain contemplated sani-
tary sewer improvements in an estimated amount of $2,000,000.
SECTION 2. The fiscal agents will pay all necessary
expenses involved in bringing the bonds to market, including approv-
ing attorneys' fee, printing of blank bonds, cost of signing and de-
livery of same,preparation of the official offering prospectus, sub-
mission to bond rating agencies, and all bond validation costs, ex-
cluding the fee of the City Attorney and Engineers.
SECTION 3. The City will pay the fiscal agents, upon the
sale and delivery of the bonds, a fee equal to Four Dollars and Nine-
ty ($4.90) Cents per one thousand dollar bond issued and sold, it
being understood that the aforesaid fee is payable only if said bonds
are sold and delivered.
SECTION 4. The Mayor is hereby authorized to execute an
agreement with said fiscal agents in accordance with this Resolution
and the aforesaid proposal, dated April 15, 1965.
PASSED AND ADOPTED by the City Council of the City of
Delray Beach, Florida, on this the 26th day of ApPil, 1965.
~AYOR ~-~
ATTES?:
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AREA CODE 305 PRIVATE WIRES TO PRINCIPAL CITIES
TELEP'HON E 374-90~1
MA,AGER 'GOODBODY & Co- MEMBeRs
RONALD E. BERg New York STOCK EXCHANGE
ESTABLISHED I89I AND
CO-MANAGER OTHER PRINCIPAL STOCK
IOOI FIRST NATIONAL BANK BLDG. AND COMMODITY EXCHANGES
A. D. HARRISON, JR.
IOO BISCAYNE BLVD.,SOUTH
HOME OFFICE
~ BROADWAY, NEWYORK, N.~IO004 MIAMI, FLA. 33131 April 15, 1965
Honorable Mayor and Members of the City Council
City of Delray Beach, Florida
Gentlemen:
In response to Mr. Saunders' letter of February 22nd, we examined the Russell & Axon com-
prehensive report and their estimated construction costs of various sewer collection dis-
tricts and the anticipated revenues of each of these districts. We also reviewed your
Water and Sewer Revenue bond ordinance and have discussed our conclusions with Mr.
Saunders, Mr. Weber, Mr. Worthing and members of your Finance Committee.
The Water and Sewer Revenue bond ordinance contains provisions for the issuance of addi-
tional parity lien bonds in an orderly manner as the need for extensions arises and our
calculations indicate that historical and projected revenues will permit the issuance of
approximately $2 million of additional bonds which will be on a parity with the lien on
the net revenues of the system as are the outstanding bonds.
At the end of your present fiscal year (September 30th) you will have had only ten months'
experience with the existing sewer system but you will have had a full year at September
30, 1966, and this should give you higher net revenues available for debt service. This
increase plus the provision in the Water and Sewer ordinance which enables you to take
credit for projected revenues from the additional facilities will make it possible for you
to complete construction of all the sewer collection districts in an orderly manner so
long as these anticipated revenues are reasonably related to estimated construction costs.
We recommend therefore that engineering studies be continued looking forward to the com-
pleted project, and concur that the first step toward completion be in the amount of about
$2 million.
To continue as your fiscal agent, we agree to pay all necessary expenses involved in bring-
ing the proposed bonds to market includi~g~the approving attorney's fee, printing of blank
bonds, cost of signing and delivery, preparation of the Official Statement, Notice of Sale
and Bid Form, submission to the bond rating agencies, and cost of validation. We will not
be liable for the fees of your local attorney or engineers. It is understood that we re-
serve the right to bid for these bonds when offered at public sale.
In consideration of our services and expenses to be paid by us, the City will pay the
undersigned four dollars and ninety cents ($4.90) for each $1,000 bond issued and sold,
this fee to be payable upon delivery of the bonds.
Your acceptance of this proposal will constitute a contract between the City and the
undersigned.
Respectfully submitted,
GOO~ODY & CO./~