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Res 1428-62 RESOLUTION NO. A RESOLUTION authorizing the issuance of ~1,500]000 Water and Sewer Revenue Bonds, Series 1962, of the City of Delray Beach for the purpose of making improvements and extensions to the sanitary sewer system of said city, providing for the sale of said bonds, providing for the security and pay~snt thereof and making certain provisions in that connection. WHEREAS the City Council of the City of Delray Beach has determined it necessary and essential to the health and well being of the inhabitants of said city to make improvements and extensions to the sanitary sewer system of said city and to finance the cost thereof through the issuance of revenue bonds under Chapter 184 of the Florida Statutes as more specifically hereinafter provided; and WHEREAS in order to secure the payment of such bonds the city desires to pledge to the payment thereof certain revenues to be derived from the operation of the waterworks plant and system of said city and the sanitary sewer system of said city, in accordance with Section 184.14 of the Florida Statutes; and WHEREAS the net revenues to be derived by said city from the operation of its waterworks plant and system have been pledged to the payment of certain Water Revenue Certificates, Series 1957, originally issued in the amount of $1,378,000 and now outstanding in the amount of $ !~285,000 , pursuant to ordinance adopted on July 5, 1957, by this City Council; and WHEREAS the net revenues to be derived by said city from the operation of its waterworks plant and system and its sanitary sewer system have been pledged to the payment of certain Water and Sewer Revenue Bonds dated December 1, 1961, originally issued and now outstanding in the amount of $500,000 pursuant to resolution adopted on November 6, 1961, by this City Council; and WHEREAS under the provisions of Section 12 of said ordinance of July 5, 1957, and Section 11 of said resolution of November 6, 1961, the City of Delray Beach may issue obligations on a parity with said Water Revenue Certificates, Series 1957, and said Water and Sewer Revenue Bonds if certain conditions prescribed in said sections are satisfied~ and WHEREAS the average annual net revenues of the waterworks plant and system of said city for the last two fiscal years have been equal to $..772~711 .... , which is more than one and one-fifth times $208,485 , the highest combined interest and principal requirement for any succeeding fiscal year of all certificates author- ized by said ordinance and all bonds authorized by said resolution now outstanding and (assuming a maximum interest rate of 5 % per annum) of the obligations herein authori~ed~ the estimated net revenues for the first two completed fiscal years following the placing in operation of the additional facilities to be acquired with the proceeds of the bonds herein authorized~ by reason of the operation of said additional facilities~ is $ 280,550 , seventy- five per cent of one-half of which is $ 105,206 , resulting in a total of $ 377,917 average annual net revenues allow- able under the test required for the issuance of such parity obliga- tions, said total being more than one and one-half times the afore mentioned highest combined principal and interest requirement~ the payments required by said ordinance and resolution to be made into the City of Delray Beach Water Revenue Certificates, Series 1957, Ir~terest and Sinking Fund created by said ordinance are current~ the obligations herein authorized are payable as to principal on June I of each year in which principai falls due and are payable as to interest on June i and December I of each year~ the proceeds of the obligations herein authorized shall be used solely for the making of improvements and extensions to the city's sanitary sewer collection, treatment and disposal system; and therefore all con- ditions for the issuance of such parity obligations are satisfied~ NOW, THEREFORE, Be It Resolved by the City Council of the City of Delray Beach, Palm Beach County, Florida: Section 1. That it is hereby found and declared as follows: (a) That the estimated cost of the sewer improvements to be made with the proceeds of the bonds herein authorized, in- cluding all proper incidental, engineering, legal and fiscal costs is $1~500,000; (b) That the estimated annual revenues of the sewer system (as hereinafter defined) is $_1~2,,780 and the esti- mated annual water revenues to become available for the payment of the bonds herein authorized is $ 294~475 ~ (c) ~hat the estimated annual cos~ of malnta~nin~, repairing and operating said sewer system is $ ~25,~80 ~ and (d) That on the basis of such estimates the annual revenues of said sewer system, with the water revenues pledged to the payment of principal of and interest on the bonds herein authorized, will be sufficient to pay such cost of maintenance, repair and operation and the interest on such bonds and the principal thereof as such interest and principal shall become due. Section 2. That as used herein the following terms shall have the following meanings unless the context otherwise clearly indicates: (a) "City" means the City of Delray Beach. (b) "Bonds" means the $1,500,000 Water and Sewer Revenue Bonds, Series 1962, herein authorized. (c) "Water Revenue Certificates" means the Water Revenue Certificates, Series 1957, of the City of Delray Beach, dated June 1, 1957, originally issued in the amount of $1,378~000 and now outstanding in the amount of $ 1~285,000 . -4 - (d) "1961 Bonds" mea~s the Water and Sewer Revenue Bonds of the City of Delray Beach dated December l, 1961, originally issued and now outstanding in the amount of $500,000. (e) "Water RevenUe Certificate Ordinance" means the ordinance adopted by this City Council on July 5, 1957, authorizing the Water Revenue Certificates. (f) "1961 Bond Resolution" means the resolution adopted by this City Council on November 6~ 1961, authorizing the 1961 Bonds. (g) "Bond Fund" means the "Bond Fund" or '~City of Delray Beach Water Revenue Certificates, Series 1957, Interest and Sinking Fund" created by the Water Revenue Certificate Ordinance. (h) "Parity bonds" means all obligations to be issued on a parity with the bonds herein authorized under Section ll hereof. (i) "First lien obligations" means Water Revenue Certifi- cates~ the 1961 Bonds, the bonds herein authorized and all parity bonds. (j) "Water system" means the complete waterworks plant and system of the city as it now exists a~d 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 boundaries of the city. {k) "Sewer system" means 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 boundaries of the city. (1) "Combined public utility" means the water system and the sewer system. (m) "Fiscal year" means a twelve-mo~th period commencing on October i of each year and ending on the last day of September of the next succeeding year. Section 3. That for the purpose of obtaining funds to make necessary improvements and extensions to the sewer system, including the payment of proper incidental, engineering, legal and fiscal costs, there shall be borrowed upon the credit of the income and revenues hereinafter pledged the sum of $1,500,000, and that in evidence of the sum to be so borrowed there be issued $1,500,000 Water and Sewer Revenue Bonds, Series 1962, of the city. The improvements and ex- tensions to be made with the proceeds of the bonds herein authorized shall consist of the following: Construction of collection system, intercepters, force mains and lift stations in accordance with plans and specifications prepared by Russell & Axon, consulting engineers. Said bonds shall be in the total aggregate principal amount of $1,500~000, shall be dated December l, 1962, shall be in the denom~ ination of $1,000 each, shall be numbered from i to 1500, inclusive, and shall bear interest from date until paid at such rate or rates not in excess of six per cent (6%) per annum as may be determined by resolution to be adopted by the City Council at or subsequent to the sale of the bonds, which interest shall be payable June l, 1963 and semi-annually thereafter on the first days of June and December of each year. The bonds shall be payable as to both principal and inter- est in lawful money of the United States of America at The Chase Manhattan Bank in the City of New York, New York, and shall mature serially in numerical order on June 1 of each of the years as follows: BOND NUMBERS AMOUNT YEAR i to 25 $ 25,000 1969 26 to 50 25,000 1970 51 to 75 25,000 1971 76 to lOO 25,000 1972 lol to 125 25,000 1973 126 to 15o 25~ooo 1974 151 to 18o 30,000 1975 181 to 21o 3o,ooo 1976 211 to 240 30,000 1977 241 to 275 35,000 1978 276 to 31o 35,000 1979 311 to 345 35,000 1980 346 to 380 35,ooo 1981 381 to 415 35,000 1982 416 to 455 40,000 1983 456 to 495 40,000 1984 496 to 540 45,000 1985 541 to 585 45,000 1986 586 to 630 45~000 1987 631 to 675 45,000 1988 676 to 725 50,000 1989 726 to 775 50,000 1990 776 to 825 50,000 1991 826 to 875 50,000 1992 876 to 985 110,000 1993 986 to 1150 165,000 1994 1151 to 1325 175,000 1995 1326 to 1500 175,000 1996 Bonds numbered 126 to 1500, inclusive, shall be callable for redemption at the option of the city in inverse numerical order on June 1~ 1973, and on any interest payment date thereafter at the principal amount thereof plus accrued interest to the date fixed for redemption and a premium of $40.00 for each bond so redeemed on or prior to December 1, 1978, $30.00 for each bond so redeemed thereafter on or prior to December 1, 1984, $20.00 for each bond so redeemed thereafter on or prior to December 1, 1990, and $10.00 for each bond so redeemed there- after prior to maturity. Notice of redemption shall be given not less than thirty days prior to the date fixed for redemption by the filing of an appropriate notice with the above named paying agen$ bank and the publication of an appropriate notice one time in a financial newspaper or Journal published in the City of NoN York, New York. If any bond which is called for redemption is at the time of such call registered as to principal, thirty days notice of redemption shall be given by registered mail to the registered holder at the address shown on the registrar's registration books. Said bonds shall be registrable as to principal only in the manner and with the effect prescribed in Section 6 hereof. Section 4. That said bonds shall be signed by the Mayor of the city, shall be attested by the Clerk and shall be endorsed by the City Attorney (the signatures of said City Clerk and City Attorney being by facsimile) and shall have l~rinted thereon a facsimile of the official seal of the City of Delray Beach. Interest accruing on said bonds on and prior to maturity shall be evidenced by coupons to be thereto attached, which coupons shall be signed by said Mayor and Clerk by their facsimile signatures and said officials by the execution of said bonds shall adopt as and for their own proper signatures their respective facsimile signatures on said coupons. Section 5. That the bonds herein authorized shall not be payable from or charged upon any funds of the City of Delray Beach~ other than the revenues to be derived from the opera- tion of the water system and sewer system as hereinafter provided, nor shall the City of Delray Beach ever be subject to any pecuniary liability thereon. No holder or holders of any of the bonds shall ever have the right to compel any exercise of the taxing power of the City of Delray Beach to pay any of the bonds or interest thereon or to enforce payment thereof against any property of the city and such bonds ehall not constitute a charge, lie~ or encumbrance, legal or eGuitable, upon any property of the city, other than the revenues received from the operation of said systems. -8- Section 6. That the bonds and the coupons to be thereto attached shall be in substantially the following form: (Form of Bond) UNITED STATES OF AMERICA STATE OF FLORIDA COU~Y~Y OF PALM BEACH CITY OF DELRA¥ BEACH WATER AND SEWER REVENUE BOND, SERIES 1962 Numb er $1,000 KNOW ALL MEN BY THESE PRESENTS that the City of Delray Beach, a duly organized and existing municipal corporation in Palm Beach County, Florida, for value received, hereby promises to pay to bearer, or, if this bond _be registered then to the re~lg~ered holder, in the manner and from the funds hereinafter provided, the sum of One Thousand Dollars ($1,000) on the first day of June, 19 and to pay from said funds interest on said sum from the date hereof until payment of principal at the rate of per cent ( %) per annum, payable June l, 1963 and semi-annually thereafter on the first days of June and December of each year, such interest to maturity being payable only upon pre- sentation and surrender of the annexed interest coupons as the same severally become due. Both principal of and interest on this bond are payable in lawful money of the United States of America at The Chase Manhattan Bank in the City of New York, New York. This bond is one of an issue in the amount of $1,500,000, all of like date, tenor and effect, except as to (interest rate,) maturity and option of redemption, issued by the City of Delray Beach, under the provisions of Chapter 184 of the Florida Statutes, for the purpose of paying the cost of improving and extending the sanitary sewer system of said city. Said bonds are payable solely -9- from and, together with certain Water Revenue Certificates, Series 1957, and certain Water and Sewer Revenue Bonds dated December 1, 1961, of said city and such obligations as may hereafter be issued on a parity therewith, iseoure~ by first pledge of the neb revenues to be derived from the operation of the waterworks plant and system and sewer system of said city. The City of Delray Beach is not obligated to pay said bonds or the interest thereon except from such revenues and the faith and credit of said city are not pledged to the payment of the principal of or interest on said bonds. The issuance of said bonds shall not directly or indirectly or contingently obligate said city to levy any ad valorem taxes whatever therefor or to make any appropriations for their payment except~ from the aforesaid revenues, This bond does not constitute an indebtedness of the City of Delray Beach within the meaning of any constitutional or statutory limitation of indebtedness and shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of said city. This bond may be registered in the manner and with the effect prescribed on the back hereof. Bonds numbered 126 to 1500, inclusive, of the issue of which this is one are callable for redemption at the option of the city in inverse numerical order on 3une 1, 1973, and oa any interest payment date thereafter at the principal amount thereof plus accrued interest %o the date fixed for redemption and a premium of $40.00 for each bond so redeemed on or prior to December 1, 1978, $30.00 for each bond so redeemed thereafter on or prior to December 1, 1984, $20.00 for each bond so redeemed thereafter on or prior to December 1, 1990 and $10.00 for each bond so redeemed thereafter prior to maturity. Notice of redemption is to be given not less %hah thirty days prior to the date fixed for redemption by the filing of an appropriate notice with the above named paying agent bank and the -10- ~PubDiCation' of an appropriate notice one time in a finanQ~al ~ newspaper or Journal published in the City of New York, New York. If any bond which is called for redemption is at the time of such call registered ms to principal, thirty days notice of redemption shall be given by registered mail t~ the registered holder at the address shown on the registrar's ~$gistration books. The City of Delray Beach has covenanted and hereby cov- enants and agrees at all times while this bond, or any bond of the issue of which it is a part, is outstanding and unpaid to fix and maintain such rates for water and services furnished by said plant and systems and will segregate and apply the income derived therefrom in the manner provided by the authorizing resolution so that said revenues will at all times be fully sufficient to operate and maintain said plant and systems and to pay principal of and interest on said bonds and all the obligations ranking on a parity therewith promptly as each falls due and to make available for purposes Junior in priority to current principal and interest requirements of all such obligations an amount at least equal to twenty-five per cent of such requirements. For a more particular statement of the covenants and provisions securing the bonds, reference is made to the ordinance and resolution adopted by the Council of the City of Delray Beach on July 5, 1957 and 196R, respectively, authorizing said Water Revenue Certificates and the bonds of this issue. It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this bond have existed, have happened and have been performed in due time, form and manner as required by law. The bonds of the issue of which this is one are declared by law to have all the qualities and incidents of negotiable instruments under the Negotiable Instruments Law of the State of Florida. This bond is one of an issue of bonds which were validated and confirmed by decree of the Circuit Court of the Fifteenth Judicial -ll- .end for ?alm BeaCh county rendered on CirCUit of ?l°~idalgl~ Florida, acting through i and by its ~aY°r' attested by its clerk and approved b~ its city -/ the official ~ttorneY (the signatures of _/ facsimtle°f facslmile)' with a City ~ttorneY, being by and h~s caused the interest seal of said city imprinted hereon, facsimile signatures coupOnS hereto attached to be executed by the first day of December, 1962' of said ~ayOr and ClerE, all as of this ~ttest: ~pproved a~ to form, ~d execution' ~ Coupon) unless the Number -~ day of _.--------~ and has on the first mentioned bond is then optional for redemption hereinafter called for redemption and provision for the elraY Beach, Florida, been theretofore duly - *he city of D _~r and out of attached, tn redaction hown hereon will pay to bearer the the bond to which this Manhatten Chase the f~ds described in lawful money of the United states of ~meriCa at The Bank in the Cit~ of New york, NeW yor~, being the i~retest then due on its water and sewer Revenue ~nd, Series 196~' dated December 1, 196~' and numbered ~ttest: (Provision for registration of bonds) The within bond may be registered in the name of the holder as to principal only on books to be kept b~ the City Clerk of the City of Delray Beach~ as RegistBar, such registration to be noted ~hereon in the registration blank belows afte~ which no trans- fer shall be valid unless n~ade on said books by the registered hol- der or his attorney thereunto duly authorized and similarly noted in said registration blank below~ but this bond may be discharged from registration by being transferred to bearers after which it shall be transferable by delivery but may be again registered as before. Such registration shall not impair the negotiability by delivery of the coupons hereto attached. (No writing in this blank except by Registrar) Date of Registration Name of Registered Holder Signature of Registrar · $ Section 7. That from and after the issuance of any of the bonds herein authorized the combined public ~tility shall con- tinue to be operated on the basis of a fiscal year as defined in Section 2 hereof. On that basis, so long as any of the Water Reveo n~e Certificates or any of the 1961 _Bonds are outstandi.ngs 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 Revenue F~nd"), 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 ? of the 1961 Bond Resolution;~ pro:zideds however~ that after retirement of all of said Water Revenue Certificates and 1961 Bondss all revenues of the combined public ~tility 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 Nation- al Bank of Delray Beach, Florida, or such other other bank or banks as may be designated from time to time by the Council of the City of Delray Beach. Any such bank must be a member of the Federal Deposit Insurance Corporation 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 city accounts, to be paid out only for the purposes and under the circumstances herein provided. Nothing in this section shall be so construed as to pre- vent the making of reimbursement to a subdivider from the revenues received from the customers in any subdivision before any remaining revenues received from such customers are paid into any of the afore- mentioned funds pursuant to any agreement between the city and any such subdivider executed prior to the delivery of the bonds. There shall first be paid from the money in the Water Revenue Fund and the Sewer Reven~e Fund or 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 expen- ses of operating and maintaining the combined public utility. Said expenses are hereby defined as those expenses reasonably incurred in the normal operation of the combined public utility and do not include the cost of additions, extensions or other capital improve- ments, 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 maintaining the combined public utility, but to the extent required by the rights of the holders of the outstanding Water Revenue Certificates and 1961 Bonds, payments for operating and maintaining each system shall be made only from the revenues of that system. Joint expenses shall be equitably allc~ed between the two systems as the Council may determine. -14- From the money in the Water Revenue Fund ~nd the Sewer Revenue Fund or the Water and Sewer Revenue Fund remaluing 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 sufficient to pay all principal of and interest on all first lien obligations f~alling due in such fiscal year and to accumulate and maintain the reserve therein as hereinafter required. The bonds herein author- ized shall be payable from said Bond Fund as to principal and inter- est on a parity with said Water Revenue Certificates and 1961 Bonds and there shall be paid into the Bond Fund all accrued interest re- ceived from the purchaser upon delivery of the bonds. All payments 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 re- demption 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 withdrawable 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 mcney in said fund to the paying agent bank such amount as may be needed for the payment of interest, or principal and interest, falling due on the next succeeding June 1 or December 1, as the case may be. From the money in the Water Revenue Fund and the Sewer Revenue Fund or the Water and Sewer Revenue Fund not expended for the cost of operating and maintaining the combined public utility in each fiscal year and not paid into the Bond Fund in such fiscal yea~, there shall be paid in each fiscal year into the Renewal and Replacement Fund created by the Water Revenue Certificate Ordinance, whenever and to the extent necessary to accumulate and maintain said fund in the amount of ~50~000, a sum 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 extent not in conflict with the rights of the holders of the Water Revenue Certi- ficates, to the sewer system when the making thereof has been recom- mended by the engineer who is at the time serving as the consult- ing 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 thereinj 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 credit of said fund. In the event money so invested is needed for the purposes for which the fund is herein oreated such investment shall be liquidated to the extent necessary. Interest on and profits derived from the sale of invest- ments 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 pay.~nts into said funds may be discontinued, and the money in said funds shall be used for retirement or redemption of such outstanding obligations. In addition to the amounts above required to be paid into the Bond Fund, beginning with the completion of the entire sewer- age project of which the improvements and extensions to be made with the proceeds of the bonds herein authorized are a part, 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 a period of sixty months to an amount equal to the largest amount of principal and interest which will be payable from the Bond Fund in any future twelve months' period, including principal of and interest on the bonds herein authorized. The reserve comprising such surplus shall be maintained for the purpose of paying principal and interest payable from the Bond Fund falling due in any year am 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 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 obligations so acquired shall be held to the credit of the Bond Fund, and in the event the money in the reserve which has been so invested shall be needed for the payment of principal or interest, the bank holding the Bond Fund shall, without specific instructions from the city, liquidate as many of the obligations so held as may be necessary and have the proceeds of such liquidation applied to the payment of principal and interest. -l?- After the paym~.nts above required have been made in each fiscal year, and any deficiencies whi.~h may exist from., prior years hav~ been remedied, the money remaining in the Sewe~ Revenue Fund shall be regarded as surplus, and may be used for any la%,,,'ful corpor- ate purpose. After retirement of all of the '~¥ater Revenue Certificates and all the 19:51 Bends, all money remaining in th~? ¥'~:ater Revenue Fund and the Se%~er Revenue Fund or the ~¥ater and Sewer Fund in each month in ,~hich all installments due durin~j that month and all previous months (assuming equal monthly installments of payments required to be made annually) have been paid may be used F~ay the cost of improvements and ext~,nsions to the combinee, public utility, to pay principal of and interest aha redemption premiums on junior lien obligations issued for such purpos~, to retire first lien obligations prior to maturity either through call for redemp- tion or purchase on the open market at a price no higher than that at ~'hi<:h the same first lien obligatiol"]s n~ay be called for redemp- tion on the next available redemption date, or to pay principal of, interest and redemption premiums on and reserve requirements for any or all of the $1,100,000 Utilities lax F, evenue Certificates, Series !962, which the city expects to issue for paying the cost of certain improvements to the sewer system, or for any other lawful purpose. Section 8. fhat so long as any of the bonds herein au- thorized remains outstanding, the city will maintain and carry, for the benefit of the holders of the bonds insurance on the physi- cal properties of the combined public utility of the kinds and in the amounts normally carried by private companies engaged in the ooeration of similar properties. Fhe city v~'ill also carry adequate public liability insurance. All 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 ob- ligations payable from the revenues of the damaged property until and unless such proceeds are paia~ out in making good the loss or -18- r damage in respect of which such proceeds are received, either by repairing the proDerty damaged or replacing the property destroyed, and adequate provision for making good such loss and damage made within ninety days from the date of the loss. The payment of prem- iums for all insurance policies required under the provisions of this section shall be considered to be maintenance and operation expenses. Section 9. That the city covenants and agrees that so long as any of the first lien obligations remain outstanding proper books of record and account will be kept by the city, separate and apart from all other records and accounts, showing complete and correct entries of all transactions relating to the 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 reasonable times to inspect all records, accounts and data relating thereto and to inspect the system and all 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 inde- pendent firm of certified public accountants, showing the receipts and disbursements for account 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 con~nent regarding the manner in which and extent to which the city has carried out the requirements of this resolution and the Water Revenue Certificate Ordinance and the accountant's recon~nendation for any change or improvement in the operation of either system. -19- 4. A list of the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the expiration date of the policy. 5. The number of meter~ water customers, the number of unmetered water customers, if a~ the number of hydrants con- nected to the water system, and She 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 of the city during such fiscal year, the number of gallons of water billed, the estimated number of gallons of water used for flushing mains and for extinguishing fires, and the number of gallons of water unaccounted for. 7. 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 sys- tem 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 applications 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 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. ll. All 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 that any such holder shall have the right to discuss with the accountant making the audit the contents of the audit and to ask for such additional information as he may reasonably 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 fif- teen days after the close of the month covered thereby. Section lQ. That the City of Delray Beach covenants and agrees with the holder or holders of any of said first lien obliga- tions 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 pub- lic utility and will segregate and apply the income derived there- from in the manner provided by this resolution so that said reve- nues will at all times be fully sufficient to operate and maintain the combined purblic 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 ~wenty-five per cent of such requirements. The City of Delray.Beach further irrevocably covenants~ binds and obligates itself not to sell, lease, encumber or dispose 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 maintain said combined public utility in good condition and to maintain a continuous and sufficient supply of water for distribu- tion by the water system. The city further covenants and agrees that every officer, agent or employee of the city having custody or control of any of the moneys derived from the operation of the combined public utility shall be bonded by a responsible corporate surety in an amount not -21- less than the greatest amount reasonably anticipated to be within the custody or control of such officer~ agent or employee at one time o The premiums on such surety bonds shall be paid by the city as reasonable and necessary expense of operation. 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. If 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 pen- alties, including a reconnection charge of not less than ~1.50, have been paid. A user shall be deemed delinquent if he has not paid the full amount of any bill within thirty days after it shall have been mailed to him. Section ll. That all first lien obligations shall enjoy complete parity of 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 agrees 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 author- ized~ it shall be found desirable to refund any first lien obliga- tion, 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 refundedj if any there be~ and the -22- 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 outstand- ing first lien obligations is so refunded, no refunding obligation may bear interest at a rate higher or mature at a date earlier than the obligation refunded thereby without the consent of the holders of the unrefunded portion of said first lien obligations. The provisions of the second above paragraph are subject to the further exception that the city may issue additional obliga- tions on a parity with the Water Revenue Certificates, the 1961 Bonds, and the bonds herein authorized upon compliance with all terms and conditions set out for the issuance of such parity obliga- tions in Section 12 of the Water Revenue Certificate Ordinance. Upon retirement of all Water Revenue Certificates and 1961 Bonds, such additional obligations may be issued if all the following conditions are met: (a) The average annual net revenues of the combined public ~tility 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 com- bined interest and principal requirements for any succeeding fiscal year on all first lien obligations then o~tstanding 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 public utility remaining after there have been deducted therefrom the reasonable ex- penses of operating and maintaining 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 rase increase for the Deriod it shall have been in Sffect a~d may add to the net revenues determined as above ~escribed seventy-five per cent (75%) of the additional net revenues which in his o~inion, baaed on such determinatiQn, would have been derived from the opera- tion of the combinsd public utility during the pa~t 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 combined public U$~y £0~ $~e $~o e~$~ed fiscal ~$a~e 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 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, seventy-five per cent (75%) of the additional net revenues estimated by the aforesaid engineer to be received 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 additional 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 t~e two completed fiscal years immediately preceding -24- 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 said two fiscal years which is to be so pledged to the payment of such additional obligations. (b) The payments required to be made into the Bond Fund including the reserve therein must be current. (c) The additional obligations must be payable as to principal on June I o£ each year in which principal falls due and must be payable as to interest on June 1 and December i of each year. (d) The proceeds of the additional obligations must be used solely for the making of improvements, extensions, renewals, replacements or repairs to the combined public utility or refunding any Junior lien obligations hereafter issued for any such purpose or refunding any or all of the SI,100,000 Utilities Tax Revenue Certificates, Series 1962, which the city expects to issue for paying the cost of certain improvements to the Sewer System. It is hereby declared that the foregoing conditions show the intention of the corresponding provisions of the Water Revenue Certificate Ordinance and the 1961 Bond Resolutien and~ to the extent not in conflict with the rights of the holders of the Water Revenue Certificates and the 1961 Bonds, said provisions shall hereafter be so interpreted. Section 12o That so far as it legally may, the City of Delray Beach covenants and agrees for the protection and security of the first lien obIigations: (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 with such sanitary sewer and shall cease to use any other method for the dis- posal 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 -25a- water system, the proceeds 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. Section 13. That the initial schedule of rates, fees and other charges to be imposed for the services and facilities furnished by the sewer system, which initial schedule shall be effective immediately at the time when the system is constructed, certified for use by the consulting engineers and accepted by the city but which shall be subject to such revision from time to time hereafter as may be necessary to carry out the requirements of this resolution shall be as follows: RESIDENTIAL UNITS A monthly sanitary sewage service charge is hereby imposed upon each residential dwelling unit, as ~m~re specifically set forth below, to which sanitary sewage service is available through the facilities afforded by the municipally owned sewage system, according to the following schedule: Single family residential dwellings, for the first 4 fixtures or less contained therein, $2.50, for the next 8 fixtures contained therein, $.25 per fixture and for all fixtures contained therein over 12, $.15 per fixture. -26- r2 COMMERCIAL AND NON-RESIDENTI. AL ,,UNITS A monthly sanitary sewage service charge is hereby imposed upon each commercial and non-residential unit to which sanitary sewage service is available through the facilities af- forded by the municipally owned sewage system, according to the following schedule: For the first 2 fixtures contained therein, $2.50, for the next 8 fixtures contained therein, $.50 per fixture and for all fix- tures contained therein over 10, $.25 per fixture. For the purpose of the foregoing schedule each plumbing fixture or drain that is connected to a sewer, including, but not limited to, a toilet, wash basin or lavatory, bath, floor drain, laundry tub, kitchen sink, slop basin or wash sink, washing machine, equipment or device if so constructed as to discharge its water content into ar4v of the foregoing or directly into a sewer, shall be regarded as a "fixture". The City Council hereby finds and declares that a public hearing was held on the foregoing schedule of rates and charges on November 6, 1961, pursuant to resolution setting forth the preliminary schedule adopted on October 23, 1961 and pursuant to notice duly given as provided by law through publication in the Delray Beach News-Journal , a newspaper published in the City of Delray Beach on October 26, 1961; that at said hear- ing all of the users of the sewer system and owners, tenants or occupants of property served or to be served~thereby and all others interested had an opportunity to be heard concerning the proposed rates, fees and charges; that said schedule was adopted and put into effect by Resolution Number 1359 adopted November 6, 1961, and is co~$inued without change by this resolution; that said schedule was upheld by decision of the Supreme 0ourt of Florida in the case of Constans v. City ..of Delray Beach (1962) , Fla. , So.2d, 497; and that no further hearing on said schedule is required. Section 14. That the bonds herein authorized shall be sold in such manner and at such time or times as may hereafter be deter- mined by resolution of the City Council. So much of the proceeds of sale as represents accrued in- terest, premium, if any, received from the purchaser upon the sale of said bonds and interest during construction shall at the time of the delivery of the bonds, to the purchaser be paid into the Bond Fund. It is hereby estimated that the period required for constructing the improvements and extensions to be made with said proceeds will be eighteen months, and therefore,an amount of such proceeds equal to the interest on the bonds which will accrue during that period shall be deposited in the Bond Fund as interest during construction. So much of the remainder of the proceeds of sale as is not required for the payment of incidental fiscal, legal and engineering expenses which are due and owing at the time of the issuance of the bonds shall be deposited in a special trust account in a bank or banks in the City of Delray Beach, Florida. Said bank shall hold and dispose of said proceeds in accordance with the terms of a letter which shall be directed to said bank and executed by the Mayor and City Clerk of the City of Delray Beach. Section l~. That the provisions of this resolution and the Water Revenue Certificate Ordinance shall constitute a contract be- tween the ~ity of Delray Beach and the holder or holders of the bonds herein authorized, and after the issuance of any of said bonds, no change,variation or alteration of any kind in the provisions of said ordinance or this resolution shall be made until all of the bonds have been paid in full except as provided in Section 17 hereof. Section 16. That in addition to all other rights enjoyed by the holders of the first lien obligations, such holders shall have the right by mandamus or other appropriate suit or action in any r -28- court of competent Jurisdiction to enforce his or their rights against the City of Delray Beach,the governing body thereof, and any and all officers and agents thereof~including but without limitation~ the right to require said city and its governing body to fix and collect rates and charges fully adequate to carry out all of the provisions and agreements in this resolution contained. Sectign l?. That the holders of seventy-five per cent (75%) in principal amount of the first lien obligations at any time outstand- ing (not including in any case any obligations which may then be held or owned by or for the account of the city, but including such refund- ing obligations as may be issued for the purpose of refunding any first lien obligations if such refunding obligations are nc~ 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 modify- ing or amending any of the terms or provisions contained in this reso- lution~the 1961 Bond Resolution or the Water Revenue Certificate Ordi- nance in the manner and to the extent set out below. This right~ how- ever~ shall not be construed to authorize the amendment of the Water Revenue Certificate Ordinance or the 1961 Bond Resolution without ob- taining the consent of ?5% in principal amount of the holders of the certificates outstanding under said ordinance or bonds outstanding un- der said resolution. No modification hereunder may: (a) Make any change in the maturity of any of the first lien obligations. (b) ~ake any change in the rate of interest borne by any of said obligations. (c) Reduce the amount of the principal or redemption premium payable on any first lien obligation. (d) Modify the terms of payment of principal or of interest or of redemption premimms on the first lien obligations or any of them or impose any conditions with respect to such payment. (e) Affect the rights of the holders of fewer than all of the first lien obligations then outstanding. r Whenever the city shall propose to amend or modify an or- dinance 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 Chicago, Illinois. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy of the proposed amendator~ 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 the proposed amendatory 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 least seventy-five per cent (75%) in aggregate principal amount of the first lien obligations 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 or not such holder shall have consented to or shall have re- voked 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 no- tice 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 aggre- gate principal amount of the first lien obligations outstanding as in this section defined have, prior to the attempted revocation, consented to and approved the amendatory ordinance or resolution re- ferred to in such revocation. The fact and date of the execution of any instrument under the provisions of this section may be proved by the certificate of any officer in any jurisdiction who by the laws thereof is author- ized to take acknowledgments of deeds within such jurisdiction, that the person signing such instrument acknowledged before him the exe- cution 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 instrume~t 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. -31- Section ~. That John Ross Adams, as attorney for the City of Delray Beach, is hereby authorized and directed to take appropriate proceedings in the Circuit Court of the Fifteenth Judi- cial Circuit of Florida in and for Palm Beach County for the vali- dation of said bonds, and the Mayor and City Clerk are hereby au- thorized to sign any pleadings in such proceedings for and on be- half of the commission of the City of Delray Beach. Section l~. That if any section, paragraph~ clause or provision of this resolution shall be held to be invalid for any reason, such invalidity shall not affect the validity or enforce- ability of any of the remaining provisions hereof. Section 20. That all resolutions or orders or parts thereof in conflict herewith are to the extent of such conflict hereby repealed. Adopted and approved Wov~ber 26 , 1962. Attest: MWM: -32- (Other business not pertinent to the above appears in the minutes of the meeting. ) Pursuant to motion duly made and carried the council adjourned. STATE OF FLORIDA I, ~~-~.~, do hereby certify that I am the duly qUalifi~-En~-~~ City Clerk of the City of Delray Beach, Palm Beach County, Florida. I further certify that the above and foregoing constitutes a true and correct copy of the n~nutes of ~ meeting of the City Council of said city held o ¢ , 1962, and of a resolution adopted at said meetdng, as said minutes and resolution are officially of record in my possession. IN WITNESS WHE~F, I have hereunto subscribed my official signature and impre~~_ hereon~e official s~e$1 of the City of Delray Beach this ~/~ day ~ ~. City (SEAL) Affidavit of Publication THE DALLY NEWS-JOURNAL Published Daily Delray Beach~ Palm Beach County, Florida STATE OF FLORIDA COUNTY OF PALM BEACH Before th~signed authori~ty~y appeared ~..:.&. ~~:~,r:~.~:.;~.~~--/ /..:..~...</'-T~~~ ............. of ilae Df'/ aily 'News-Journal, a daily newspaper published at Delray Beach in Palm Beach Couniy, Florida; at the attached copy of aOvertisement, being aN in..~e matter o~,~L~5.~fg~..kM,~ in the ........................................................................ Court, was publ~hed ~ s~d newspaper in the issue (s) ............... Mfiant fu~her says ~at the said Daily News-Journal is a newspaper published at Delray Beach, ~ said PMm Beach County, Florida, and that the said newspaper has heretofore been con- tinuously published in s~d Palm Beach County, Florida, daily ~d has been entered as second class mail matter at the p~t office ~ Delray Beach, in said Palm Beach County. Florida, for a period of one year ne~ preceding the fi~t publication ~ ,ac attached copy of_ad~ise- merit; and affiant fur~er says that ............... bas neither paid nor prorated any p~son, fi~ or eo~oration any discount, reba*e, commission or refu~ for the put. se of securing t~s adver- figment for pub~on in~e said n~spaper. Swor~ an} ,su,bse~ed ~fore me ~is~ .... day o~].~~, A.D. ' ~o~r7 Public Affidavit of Publication THE DALLY NEWS-JOURNAL Published Daily Delray Beach, Palm Beach Counfy, Florida STATE OF FLORIDA ¢o~ o~ r~u~ Before the.'/f~rsigned authority peps~y appeared/('~~~~-~---~' ).~..'~.~~ of~e Dail, ,' News-aour~l, a daily newspaper publish~ at Delray Beach in Palm Beach Cou~y, Florida; ~t the at~ched ~py ~ a~ve~isement.being ~ / [ 7. -" / , - ~ in the ........................................................................ Court, was pp~jshed in said newspaper in the issue (s) Affiant further says that the said Daily News-Journal is a newspaper published at Delray Beach, in said Palm Beach County, Florida, and that the said newspaper has heretofore been con- tinuously published in s~id Palm Beach County, Florida, daily and ha, s been entered as second class mail matter at the post office in Delray Beach, in said Palm Beach County, Florida, for a period of one year next preceding the first publication of the attached copy of a~ ment; and affiant further says that ...................... has neither ,paid nor promised any person, firm or corporation any discount, rebate, commission or refumt for the p~rpose of securing this adver- .seme for p c on sai ewspaper. Swor~...~nfl'subscr~ed before me da, ot:~.~~,~,.-.g~., A?. ~ .~..:.~:SV~. , (SEAL) ~ ' .fN~tar~ Public i~§TART PUBLIC, STATE OF FLORIDA AT LAR6E MY CI~M.MLSSION EXPIRES OCT. 25, 1966 Delray Beach, Florida ~ovem~, PA , 1962 The City Council of the City of Delray Beach, Palm Beach County, Florida, met in regula.~' public session at the regular meeting place of the City Council in the City Hall in the City of Delray Beach at 2 o'clock P .M. on NOvember ox 1962 with Mayor Walter Dietz and the follow- lng members present: Councilman Cou~ci]u~r~ George T~!bo:'~ Jr Absent: There were also present R.D.%~o?th!og .. , City Clerk, Robert J. }iol]~nc~ , City ~nager~ and J~.~nn Ross &~ams ., City Attorney. After the meeting had been duly called to order by the ~yor and the minutes of the preceding meeting had been read and approved the following resolution was introduced in written form by _ R. D, Wort;b~r~ , was read in full and discussed. Pursuant to motion ~de by George V. Warren and seconded by A ]. ~ $ vets . .~. , the resolution was adopted by the following vote: ?Iayor W~lter Dietz Councilm~n George ~a].bot~ Jr. Councilm~-~ _~.uzver ?f. k~oo~,ar~ Jr. NAY: None. The resolution is as follows: