HomeMy WebLinkAboutResolution No. 1965-07 (2)� � ,� e,y T / c� �1V .Y
RESOLUTION NO. 61� -7
A RESOLUTION PROVXDING FOR THE ACQUISITION AND
CONSTRUCTION OF A SANITARY SEWERAGE SYSTEM OF
THE CITY OF CAPE CANAVERAL, FLORIDA; AUTHORIZING'
THE ISSUANCE OF $1,350,000 SANITARY SEWER REVENUE
CERTIFICATES TO FINANCE THE COST THEREOF; PRO
VIDING FOR THE RIGHTS OF THE HOLDERS OF SAID -
REVENUE CERTIFICATES; PLEDGING FOR THE PAYMENT
THEREOF THE NET REVENUES OF THE SANITARY SEWERAGE
SYSTEM, THE PROCEEDS OF THE UTILITIES TAX AND
THE PROCEEDS OF THE ELECTRIC FRANCHISE TAX;
FIXING AN INITIAL'SCHEDULE OF RATES, FEES AND
CHARGES; PROVIDING FOR A PUBLIC HEARING; AND
PROVIDING FOR AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CAPE
CANAVERAL, FLORIDA, that:
SECTION 1, AUTHORITY FOR THIS RESOLUTION. This ROS011l-
tion is adopted pursuant to the provisions of Chapter 184, Florida
Statutes, and other applicable provisions of law;
SECTION 2, FINDINGS. It is hereby found and determined
as follows:
A. The City of Cape Canaveral, Florida (hereinafter
sometimes called the "City") does not own, operate or maintain a
sanitary sewerage system (hereinafter sometimes referred to as the
system").
B. The acquisition and construction of such system
(hereinafter referred to as "project") is necessary and essential
in order to preserve the public health and -safety cf the citizens
of the City and the inhabitants of the surrounding environs, and
it is essential for the physical and economic welfare of said City
that such project be constructed. The plans and•specifications
for such improvements as prepared by Briley, wild & Associates,
Consulting Engineers of the City have been adopted and approved
by the City Council and are presently on file at the office of the
City Clerk,
C. The City, pursuant to non -emergency Ordinance No.
611. 10, ozra=a& April 28, 1964, and Section 167.431, Florida
Statutes, has levied a tax on every purchase of electricity,
meterod or bottled gas (natural, liquified petroleum.gas or
manufactured), water service and telephone and telegraph sorvice
within the corporate limits of the City, (which taxes are sometimes
hereinafter referred to as "utilities tax"). The,proceeds of the
utilities tax are not now pledged or encumbered in any manner.
D. The -City, pursuant to the provision¢ of Ordinance
ho. 5-62, enacted aILI �f1�U^P , entered into an agreement
with the Florida Power and Light Company granting to the latter
an electric franchise for a period of thirty years for the privilege
of operating and maintaining electric light and power facilities
in tho.Ctty. In return for such privilege the Florida power and
Light Company has agreed to pay a continuing franchise tax to the
City (such tax being hereinafter referred to as the "franchise tax")
The proceeds of the franchise tax are not now pledged.or encumbered
in any manner.
E. 1. The estimated gross annual revenues to bo dorived
from tho operation of the system after, the completion of the project
is an average of $144,866.
2_ The estimated annual'cost 'of maintaining, repair-
ing and operating the system is an average of $37,446,
3. The estimated annual proceeds of the utilities
tax is an average of $76,767.
4. The estimated annual proceeds.of the franchise
tax is an average of $42,721.
F. The estimated annual net revenues to be hereafter
derived from the operation of the system, the proceeds of the
!WM
utilities tax and the proceeds of the franchise tax (hereinafter
collectively referred to as "excise taxes') will be sufficient to
pay the principal of and interest on the Certificates, herein
authorized, as the same become due, all sinking fund, reserve and
othar payments herein,required.
G. The estimated cost of said project is the sum -of
$1,560,000. Of such cost $1,350,000 shall be provided from the
sale of Certificates herein authorized and the balance shall be
provided by the City from other available sources.
Such cost, in
addition to the specific items contained in the plans and specifi-
cations approved by the City Council, shall be deemed to 'include
the acquisition of any existing sewer facilities, or`of land or
interest therein, or of,any fixtures or equipment or properties
necessary or convenient thereform engineering. and legal expenses,
fiscal expenses,'expenses for estimates of costs and of revenues,
expenses for plans, specifications and surveys, administrative
expenses, interest during construction, if any, the establishment
of reserves and such other: expenses as may be necessary or incidental
for the financing authorized by this Resolution, thelconstruction
of the project and the placing of the same in,operation.
H. The principal of and interest on theCertificates
to be issued p'.rsuant to this Resolution and all of the reserve,
sinking'fund or other payments provided for will be paid solely
from the net revenues derived from the operation of the system and
the proceeds of the excise taxes. The City will not be authorized
to levy ad valorem taxes on any real property therein to pay the
Principal of anc interest on the Certificates, herein authorized,
or to make any of the reserve, sinking fund or other payments
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arovided for herain. Such Certificates shall not constitute a lien
upon the system or upon any other property whatsoever of or in the
City.
SECTION 3. DEFINITIONS. The following terms in this
Resolution shall have the following meanings, unless the text
otherwise expressly requires:
A. "Certificates shall mean the $1,350,000 Sanitary
Sewer Revenue Certificates originally authorized to be issued pur-
suant to this Resolution, the interest coupons appertaining thereto,
and also any additional parity certificates, and the interest
coupons appertaining theteto, hereafterissued pursuant to and
under the terms, restrictions and conditions contained in this
Resolution.
B. •"Holder of Certificates" or "Certificate Holder",
or any similar terms, shall mean any person who shall be the bearer
or owner of a Certificate or Certificates, registered to bearer
or not registered, or the registered owner of any such Certificate
or Certificates which shall at the time be registered other than .
to bearer or the bearer of any coupons representing interest accrued
or to accrue on said Certificates.
C. "Gross Revenues" or "Revenue" of the system shall
mean all fees, rentals or other charges or income received by the
City from the operation of the system.
D. "Operating Expenses" or "Cost of Operation and Main-
tenance" of the system shall mean the current expenses, paid or
accrued, of the operation, maintenance and repair of the system
and its facilities, as calculated in accordance with sound account-
ing practices, and shall include without limiting the generality
of the foregoing, insurance premiums, administrative expenses of
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M
the City relating solely to the system,labor, cost of materials
and supplies used for current operations and charges for the accumu-
lation of appropriate reserves for current expenses not annually
recurrent, but which are such as may reasonably be expected to be
incurred. Operating expenses shall not include any allowance for
depreciation or renewals or replacement of capital assets of the
system.
E. "Net Revenues" of the system shall mean the gross
revenues as defined in subsection C after deducting only operating
expanses of the same as defined,in subsection D.
F. "Utilities tax shall mean'the proceeds derived by
the City pursuant to Ordinance No. 64.10, enacted on April 28, 1964,
upon every purchase of electricity, metered or bottled gas (natural,
liquified petroleum gas or manufactured), wat8r service and .tele-
phone and telegraph service within the corporate limits of the City,
under the authority of Section 167.431, Florida Statutes.
G. "Franchise tax shall mean any and all moneys received
by the City from the Florida Power. and Light Company, its legal
representatives, successors or assigns under the electric franchise
granted pursuant to Ordinance No. 5-62, enacted Au-lst 28, IcKi3
granting such company the right to construct, maintain and operate
electric light and power facilities for the purpose of supplying
electricity to the City or its inhabitants.
H. ccise taxes" shall mean collectively, the utilities
tax and franchise tax.
I. "Fiscal year" shall mean the period commencing on
october-1 of each year and continuing to and including the succeed- '
ing September 50.
J. PTords importing singular number. -shall include the
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*Aural number in each case and vice versa, and words importing
persons shall include firms and corporations.
SECTION 4. RESOLUTION.TO CONSTITUTE CONTRACT. In con-
sideration of the acceptance of the Certificates authorized to be
issued hereunder by those who shall hold the same from time to-time,
this Resolution shall be deemed to be and shall constitute a con-
tract between the City and such holders. The covenants and agree-
ments herein set forth to be performed by°the' City shall be for
the equal benefit', protection and security of the legal holders of
any and all of such Certificates and the coupons attached thereto,'
all of which shall be of equal rann, and without preference, priority
or distinction of any of the Certificates or coupons over any other
thereof, except as expressly provided therein and herein:
SECTION 5. AUTHORIZATION OF CERTIFICATES AND CO-TSTRUCTION
OF PROJECT. Subject and pursuant to the provisions of this Resolu-
tion, certificates of the City to be }mown as "Sanitary-Sewer
Revenue Certificates", herein sometimes referred to as "Certificates",
are hereby authorized to be issued in the aggregate principal amount
of One 24illion Three Hundred Fifty Thousand Dollars '($1,350,000).
The acquisition and construction of the project, the cost of which
is to be paid in part from the proceeds of the certificates, is
heroby authorized.
SECTION 6. DESCRIPTION OF CERTIFICATES.. The Certificates
shall be dated February 1, 1965; shall be numbered consecutively
from one upward; shall, be in the denomination of $5,000.00 each;
shall bear interest at not exceeding the legal sate; ,'such interest
to be payable semi-annually February 1 and August l of each year,
and shall mature serially in numerical order,. lowest numbers first,
on February 1 in the years and amounts as follows:
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PRINCIPAL
"C%PAL '_'i.AP.------_'— .
1982 $55,000
1969 $ 5,000 1983 55'000.
1970 10,000 1984 60,000
1971 15,000 1985 60,000
1972 20,000 198G 65,000
1973 30,000 3.961 65,000
1974 35,000 1988 70;000
1975 40,000 1989, 75,000
1976 40,000 1990 75,000
1977 45,000 1 80,000
1978 45,000 1991991 85,000
1979 45,000 1993; 65,000
1980 _ 50,000 1994, 90,000
1981 50,000
Such Certificates shall be issued in coupon form; shall
be payable kith
respect and interest in lawful'
t to both Principal
s of praerica.at such ban7s or banks to
money Of the United State
be determined by the City, subject to the approval of, the original
purchasers of the Certificates, Prior to the; delivery thereof;
from 'their date, Payable in accordance
and shall bear interest
ant interest coupons as
With and uPOn surrender of tho aPPurten
they severally mature.
SECTION 7. EXECUTION OF CERTIFICATES AND COUPONS. The
nameof the City by the
Certificates shall be executed in the
Idayor and attested by the City Clerl', and its corporate seal or
a facsimile thereof shall be affixed thereto or reproduced thereon.
The facsimile signatures of the Mayor or the City Cler,, may be
ced on the Certificates, provided that at
imprinted or reprodu
ally
ired,to be placed; thereon shall be anu
least one signature requ
m
or more of the officers who shall
subscribed. In case any one
of the Certificates shall cease to .bo
have signed or sealed any
ertificates so signed and
such officer of the City before the C
sealed shall have been actually. sold and delivered, such Certi-
Eicates may nevertheless be soherein provided
sold and delivered as
the parson who signed or sealed suc
and may be issued as if h
Ccrtiiicates nad not ceased. to hold such O:£ice. Any Ccrtiiicatu
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;nay be signed and sealed on behalf of the City by such parson,who
at the actual time of the execution of such Certificate shall hold
the proper office in the City, although at the date of such Certi-
ficates such person may hot have held such office or may not have
been so authorized.
The coupons attached to the Certificates shall be authen-
ticated with the facsimile signature of any present or future
Mayor of said City, and the validation certificate on said Certi-
ficates shall be executed with the facsimile signature of the Mayor.
The City may adopt and use for such purposes the facsimile signa-
ture of any person who shall have been such Mayor at any time on
or after the date of the Certificates, notwithstanding that he
may have ceased to be such officer at the time such Certificates
shall be actually sold and delivered.
SECTION S. NEGOTIABILITY AND REGISTRATION. The Certi-
ficates issued hereunder shall be, and shall have all of the
qualities and incidents of'negotiable instruments under .the law
merchant and the Negotiable instruments Law of 'the State of Florida,
and each successive holder, in accepting any of said Certificates
or the coupons appertainkng`thereto, shall be conclusively deemed
to have agreed that such Certificates.shall be and have all of the
qualities and incidents of negotiable instruments under the law
merchant and the Negotiable Instruments Law of the State of Florida,
and each successive holder shall further be conclusively deemed
to have agreed that said Certificates shall be incontestable in
the hands of a bona fide holder for value,
The Certificates may be registered at the option of the-
holder as to principal only at the o£tice of..the City Clerk, such
registration to be noted on the back of said Certificates in-the
_g_
apace provided therefor. After such registration as to principal
only no transfer of the certificates shall be valid unless made
at said office by the registered owner, or by his duly authorized
agent, or representative and similarly noted on the Certificates, .
but the Certificates may be discharged from registration by being
in like manner transferred to bearer and thereupon transferability
by delivery shall be restored. At the option of the holder, the,
certificates may be thereafter again from time to time"regidtered
or transferred to bearer as before. Such registration as to
principal only shall not affect the negotiability of the coupons
which shall continue to pass by delivery. -
SECTION 9. CERTIFICATES mUTIIATED, DESTROYED, STOLEN
OR LOST. In case any Certificate shall become mutilated,.or be
destroyed, stolen or lost, the City may in its discretion issue'
and deliver a new Certificate with all unmatured. coupons attached
of like tenor as the Certificate and attached coupons, if any,
so mutilated, destroyed, stolen or lost, in exchange and substi-
tution for such mutilated Certificate, upon surrender and cancel-
lation of such mutilated Certificate and attached coupons, if any,
or in liuu of and substitution for the Certificate and attached
coupons, if any, destroyed, stolen or, lost, and upon the holder
furnishing the City proof of his ownership thereof and satisfactory
indemnity and complying with such other reasonable regulation and
conditions as the City may prescribe and paying such expenses as
the City may incur. All Certificates and coupons so surrendered
shall be cancelled by the Clerk of the City. if any such Certifi-
cates or coupons shall have matured or be about to mature, 'instead
of issuing a substitute Certificate or coupon, the City may pay '
the same, upon being indemnified as aforesaid,. and if such
C.artificate or coupon be lost, stolen or destroyed, without
surrender thereof.
Any such duplicate -Certificates and coupons issued
pursuant to this section shall constitute original, additional
on the part o£ the City whether or not
contractual obligations
d Certificates or; coupons
the lost, stolen or destroyebe at any
time found by anyone, and such duplicate Certificates and coupons
shall be entitled to equal and proportionate benefits and rights
as to lien on and.source and security for payment from the funds,:
t asall other Certifi
as hereinafter pledged, to the same exten`
Cates and coupons issued hereunder.
SECT:r03 10. p MEM?TION PROVISIONS. The Certificates'
of this issue maturing in the, years 1969 1through 1975,: inclusive,
tated dates of maturity.
shali not b.e redeemable prior to their s
The Certificates of this issue maturing'in the year.197G and
their stated dates of
thereafter shall be redeemable` prior to
the City, in whole or in part, from
maturity, at,the option Of
any moneys made available for such purpose on February 1, 1975
terest_payment date thereafter.at the price of par
or on any in
the premiums expressed in percentages
and accrued interest pias
of the principal amount of such Certificates if redeemed in the
years hereinbelow set forth:
Three per centum (3'.a) if redeemed on February
1, 1975 or thereafter to and including February
1, 1980;
Two per centum (V.) if redeemed on August 1,
1980 or thereafter to and including August
1, 1985;
One .per centum (ly) if redeemed; on February.
1, 1986 and thereafter but prior to maturity.
if less than all, shall be redeemable
Tha Certificates,
in the inverse irder Of their r,�aturitiea and by lot within maturities.
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Notice of such redemption shall be published at least
once at least thirty (30) days prior to the redemption date in
a financial journal published in the Borough of Manhattan, City
and State of New York, and further that written notice of such
redemption shall also be given to the paying agent named in said
Certificates at least thirty (30) -days before said redemption date.
SECTION 11. APPROVAL BY CITY ATTORNEY. The City
Attorney shall certify on the face of each certificate that such
Certificate and the attached coupons have been approved by him
as to form, language and execution.
S,;CTION 12. FORId OF CERTIFICATES AND COUPONS. .The
text of the Certificates, the interestcoupons to be attached
thereto and the validation certificate to beendorsedthereon
shall be.in substantially the following tenor, with such variations,
omissions and insertions as may be necessary, desirable, and
authorized or permitted by this Resolution or any.subsequent
resolution adopted prior to the issuance. thereof:'
No. $5,000
U141TED STATES OF AMERICA
STATE OF FLORIDA
CITY OF CAPE CANAVERAL
COUNTY OF BREVARD
SANITARY SEWER REVENUE CERTIFICATE
KNOW ALL MEN BY THESE PRESENTS, that the City,of Cape
Canaveral in Brevard County, a municipal corporation of the State
of Floridja, (hereinafter referred to as "City"), for.valuo received,
hereby promises to pay to the bearer hereof, or if this Certificate
be registered to the registered holder as herein provided, on the
first day of February, 19_, solely from.the spacial funds here-
inaftor .mentioned, the principal sum of
FIVE THOUSAND' DOLLARS
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and to pay solely iron such special funds, interest on such prin-
cipal sum from the date hereof at the rate of per
centum ( r) per annum, until the payment of such principal.
aum, such interest being payable semi-annually on the first day
of February and the first day of August of each year, but only
in the case of interest payable at or prior to maturity of this
Certificate upon the presentation and surrender of the annor_ed
coupons as they severally mature. Both principal of and interest
on this Certificate are payable in lawful money of the United
States of America at the
or, at the option of the holder,
at the
This Certificate is one of an authorized issue of Certi-
ficates in the aggregate principal amount of $1,.350,000 of like
date, tenor and effect, except as to numo'er,.interest rate and
date of maturity, issued to finance a portion of the cost of
acquisition and construction'of a sanitary sewer system of the
City (hereinafter referred to as the "system"), under, the authority
of and in full coirpliance with the Constitution and Statutes of
the state of Florida, particularly Chapter 184, Florida Statutes,
and Resolution No,65'l , duly adopted on '.Tanuary 25. 196ti
:,,ariled by Resolutions No. 65-7-A and 65-7-B on Feb19o5,
(hereinafter referred to as the "Resolution"), and is subject to
all the terms and conditions of such Resolution. .
This.Certificate and the coupons appertainingthereto.
are payable solely from and secured by a prior lien upon and pledge
of the net revenues derived from the operation of the system;
from the proceeds derived by the City upon every purchase of
electricity, metered or bottled gas (natural, liquified petroleum
gas or manufactured), water service and telephone and telegraph
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zc!rvice within the corporate limits of the City, under the
authority of Section 167.431, Florida Statutes; and from the
proceeds of a franchise tax received by the City from the Florida
Power and Light Company pursuant to Ordinance No. 5-62, enacted
August 28, 1962 The lien on and pledge of the proceeds of
the franchise tax are subject to being extinguished and released
upon the happening of certain events,.all as provided in the
Resolution. This Certificate does not constitute an indebtedness
by the City within the meaning of any constitutional, statutory
or charter provision or limitation, and it is expressly agreed
by the holder of this Certificate that such holder shall never
have the right to require or compel the exercise of the taxing
power of the City for the payment of the principal of and interest
on this Certificate or the making of any sinking fund, reserve
or other payments provided for in the Resolution authorizing this
issue of Certificates. This Certificate and the obligation
evidenced thereby shall not constitute a lien upon the system or
any part thereof, or on any other property of the City, but shall
constitute a lien only upon the.net revenues derived from the
operation of such system and the proceeds of such utilities tax
and franchise tax (hereinafter collectively referred to as "excise
taxes") all in the manner provided in the.Resolution.
The City in such Resolution has covenanted and agreed
with the holders of the Certificates of this issue to fix, estab-
lish and maintain such rates and collect such fees or other charges
for the services and facilities of its system and to revise the
same from time to time whenever necessary, as will always provide
revenue sufficient to pay the cost of operating and maintaining
the system, and, together with the proceeds from the excise taxes,
125/ of the largest anount of principal of and interest on the
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Certificates of this issue becoming due in any succeeding year and
all reserved or other payments provided for in said Resolution,
able on a P
azity therewith, and that .
and all ,other obligations Pa �',
such Yates,, fees or other charges shall not be reduced so as to
fficient to provide revenues for such,pu
be insuzposes. The City
nts with the holders of
has entered into curtain further covena
the certificates of this issue for the terms of
whicp reference'
is made to the Resolutiou.con--
It is hereby certified and recited, thappen
all acts,
exist, en and to be performed
ditions and things required to have
this Certificate, exist,
precedent to and in the issuance of and time
rformed in regular
happened and have been Pe
and due form
as required by the Statutes and Constitution of the State of
Floridaapplicable thereto, -and that the issuance o£ this Certi-
this Certificate
ticate and of the issue °f Certificates Of wh statutory or chaster
is one, does not violate any constitutional,
limitation. e
This.Certi£icaztaining thereto
te and the coupons aPp
utilities and incidents of
a negotiable
,
are, and have all the q
instrument under the law merchant and the Lgegotiable Instruments
Law of the State o£ Florida, and the original holder and .each.
ons appertain -
successive holder of this Certificate or of the coup
ing thereto, shall be conclusively deemed by
his acceptance thereof
the coupons appertaining
to have agreed that this Certificate and and incidents of
thereto shall be and have all the qualities
s under the law merchant and the Negotiable
negotiable instrument
Florida.
Instruments Law of the State of
The CextiEicateS °f this , issue maturing in the years
1969 through 19751 ,
shall not be rede
inclusiveemable prior to
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their stated dates of maturity. The Certificates of this issue
maturing in the year 1976 and thereafter shall be redeemable prior
to their stated dates of maturity, at the option of the City, in
whole or in part, from any moneys made available for such purpose
on February 1, 1975 or on any interestpayment date thereafter
at the price of par and accrued interest plus the premiums
expressed in percentages of.the principal amount of such Oertifi-
cater if redeemed in the years hereinbelow set forth-
Three'per centum (3%)"iL redeemed on February
1, 1975 or thereafter to and including February
1, 1980;
Two per centum (2%) if redeemed on August 1,
1980 or thereafter to and including August
1, 1985;
One per centum (1%) if redeemed on-February:l,
1986 and thereafter but prior to maturity.
Notice of such redemption shall be given in the manner
required by the Resolution.
This Certificate may be registered as to principal only
in accordance with the provisions endorsed hereon.
IN WITNESS MiEREOF'the City of Cape Canaveral, Florida,
has issued this Certificate, and caused the same to be, signed by
its MA%,or and attested by the facsimile signature of the City
Clork an: a facsimile of its corporate seal to be imprinted hereon
and has caused the interest' coupons.hereto attached, to be executed
with the facsimile signature of the Mayor,- all as of the.first-
day of February, 1965' .
CITY OF CAPE CANAVERAL, FLORIDA
(SEAL) By.
`Mayor
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ATT17ST D: '
The foregoing Certificate and
attached coupons have boen
city Clark approved by me as to form,
language and execution.
City"Attorney
FORM OF COUPONS
No.
on the first day "of 19_, the city of
Cape Canaveral, Florida, will pay, to the bearer at the,
or at the
option of the holder, at the
from the special funds described
in tho Certificate to which this coupon is attached, the sum Of
Dollars ($ )
in lawful money of the United States of America, upon presentation
and surrender of this coupon, being six: months' interest "then due
on its Sanitary Sevier Revenue Certificate dated February 1, 1965,
No.
CITY. OF. CAPE CANAVERAL, FLORIDA
By
Mayor
(Insert in coupons maturing after callable date the following:'
"unless the Certificate to which this coupon is attached has been
duly called for prior redemption and provision duly made for the
payment thereof.")
VALIDATION CERTIFICATE
This Certificate-is one of a series ;of Certi
ficates
which word validated and confirmed by decree of tlid Circuit court
of the Ninth Judicial Circuit of the State of Florida, in and for
IBrovard county,'rendered on
Mayor
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PROVISION FOR R::�ISTRATIOIS
This Certificate may be registered in the name of the
holder on the boo7cs to be kept by the Clerk of the City, as
be hereafterduly
Registrar, or such other Registrar as may
appointed, as to principal only, such registration being noted
hereon by such Registrar in the registration blank bolow, after
books by the
which no transfer shall be valid unless made'on said
orized apd sithilarly noted
registered holder or attorney duly
auth
in the registration blank below, but it may be discharged from
rer, after which it shall'
registration by being transferred to bea
be transferable by delivery,-but it may be again registered as
to, principal
before. The registration of this certificate as
shall not restrain the negotiablity of the coupons by delivery
merely.
Signature of
Date of In ;Those Name' Renistrar
Re istered
Rc^is`ration -
•
Neither
SECTION 1CERTIFICAT?S NOT DEBT OF CITY. 3.'
the Certificates nor coupons shall be or constitute ganeral obli-
gations or indebtedness of the City of Cape Canaveral, Florida,
ithin the meaning of Section 6, Atticle
as bonds wy , of the
from and
constitution of Florida, but shall be payable solely
a pledge of the special funds as herein
secured by a lien upon and
No holder or holders of any Certificate or of any
provided,
to compel
thereto, shall ever have the right
coupon appertaining
the exercise of the ad valorem taxing pO°4eY of the City Or
to{ation in any. form o£ any real property therein, to pay the
terest thereon, or be ,entitled to payment
Ccrtisicates or the in
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0
of such principal and interest from any other funds of the City
except from the revenues derived from the operation of the system
and the proceeds of the excise taxes in the manner provided herein.
SECTION 14. PLEDGE OF REVENUES AND EXCISE TAXES. The
payment of the debt service of the Certificates shall be, secured
forthwith equally and ratably by a_pledge of,and -a prior lien on
the revenues of the system and on the proceeds of the excise taxes,
as hereinafter provided. .The City does hereby irrevocably pledge
said funds to the payment of the principal, of and interest on the
Certificates issued pursuant to this Resolution and to the payment
into the reserve and sink ng funds, at the times provided, of the
sums required to secure to the holders of the Certificates issued
hereunder the payment of the principal of.and interest thereon at
the respective maturities of the Certificates so held by them.
SECTION 15. RELEASE OF LIEN OF FRANCHIS$ TAX. In the
event the annual total of the net revenues from the system and
the proceeds from the; utilities tax for each of two consecutive
years shall equal 150% of the highest annual debt service require-
ments for the Certificates, as certified by the sworn certificate
of an independent certified public accountant, then the lien of
the holders of the Certificates on the franchise tax, and the
pledge thereof to the Certificates, shall'thoreafter be released
and extinguished. The city shall cause a.notice to be published
in a financial newspaper or journal published ici.the City of New
York, New York and in -a newspaper of.general circulation in the
City of Cape Canaveral, Fhorida, to the effect that the.above
described condition has been met and that the,lien of the holders
of the Certificates on the franchise tax.and the pledge thereof
to the Certificates is released and extinguished as of the date
-18-
of the accountant -'s certificate.
The sworn certificate of the independent certified
public accountant, above referred to, shall be subject to inspec-
tion at all reasonable times by any Certificate holder and the
City shall mail copies of the sworn cortificate.to any Certificate
holder requesting the same.
If, after the lien of the franchise tax has been released
as above provided, the City shall issue additional parity certifi-
cates pursuant to the provisions of Section 16 P,hereof, the City
may repledge the proceeds of the franchise tax for the payment of
.the Certificates and of the additional parity certificates
provided that the proceeds of such franchise tax have not otherwise
bean pledged or encumbered.
SECTION 16. COVENANTS OF TFZ CITY. So long as any of
the principal of and interest on any of the Certificatesshall be
outstanding and unpaid or until there shall have been set apart -
in the Sinking Fund, herein established, a sum sufficient to pay
when due the entire principal of ,the Certificates remaining unpaid
together with interest accrued and to accrue thereon,_ the City
covenants with the holders of any and all Certificates issued
pursuant to this Resolution as follows, that:
A. SPECIAL FUNDS. The entire grossrevenuesderived
from the operation of the system shall be deposited'into a special
fund, which is hereby established and designated "Sewer System
Revenue Fund" (hereinafter sometimes called the "Revenue Fund").
The entire proceeds of the utilities tax shall be deposited into
a special fund, which is hereby established and designated "Utili-'
ties Tax Fund" and the entire proceeds of the franchise tax shall
be deposited into a special fund which is hereby established and
-19-
.._signatad "Franchise Tax Fund". All moneys in the Revanuu Fund,
the Utilities Tax Fund and the Franchise Tax Fund shall be held
in trust for the purposes provided in this Resolution and shall
be kept in a bank account, separate and apart from all other funds
of the City, and used only for the purposes and in the manner
provided in subsection' Bof this Section 16.
B. FLOTJ OF FUNDS._, All revenues on deposit in the
Revenue Fund shall not later than the 15th day of each month in
each year, be disposed of only in the following manner and order
of priority:
(1) ,Revenues shall first be used for deposit into
a fund to.be known as the ".operation and maintenance Fund", which
is hereby established, in,amounts necessary to pay the_cost of
Operation and Maintenance, as hereinabove"defined, for the next
ensuing month,
(2) From the moneys remaining in the Revenue Fund,
the City shall next deposit into a separate fund, to. be held in
trust by the paying agent bank, as trustee, which fund is hereby
established and designated "Sewer System Sinking Fund" (herein- `•
after called "Sinking Fund"), such sums as will be sufficient to
pay one-sixth (1/6) of all interest becoming due on the nert.semi-
annual interest payment date, and commencing not later than
February 15, 1960, one -twelfth (1/12) of all principal maturing
on the Certificates on the next maturity'flate. ; All such payments,
as provided above, shall include an amount sufficient to pay the
fees and charges of the paying agent. Such monthly payments
required for interest becoming due August 1, 1965 shall be
increased proportionately_to the extent:required-toppay such
August 1, 1965 interest.
-20-
(3) moneys in the Revenue Fund shall ne;-:t be u:>ed
to maintain a Reserve Account in the Sinking Fund, which is hereby
established, The City shall transmit to the trustee for deposit
into such Reserve Account from the proceeds derived from the sale
.of any orallof the Certificates,; the sum of $50,000,and the
balance, if any, of the moneys held in a; special escrow account,
after a full and complete discharge and settlement has been'madc
with Palm Beach Investment Co.,,Inc. Thereafter, but aommoncing
not later than _ 'June 15, 19 _,'the City shall withdraw
from the Revenue Fund and transmit to the trustee for deposit
in the Resorve Account one twelfth (1/12) of one seventy-second
(1/72) of the difference between the maximum amount of principal
and interest becoming due on the Certificates and the,aggregate
amount of the initial deposits made into the Reserve Account, as
provided above. No further payments shall be required to be made
into the Reserve Account as long as there shall remain on deposit
therein an*amount equal to the greatest amount of principal and
interest becoming due and payable on the Certificates in any
ensuing fiscal year.
Any withdrawals from the Reserve Account shall be
subsequently restored from the first moneys available in the
Revenue Fund after all required current payments for the Operation
and Maintenance Fund,'Sinking Fund and Reserve Account, including
all deficiencies for prior payments, have,been'made in full,
Moneys in the Reserve Account shall be used only
for the purpose of the payment of maturing principal of or interest
on the Certificates when the other moneys In the Sinking'.Fund are
insufficient therefor, and for no other !purpose.
-21-
The City shall not be required to make any further
payments into the Sinking Fund or into the Reserve Account riven
the aggregate amount of moneys in both the sinking, Fund and the
Reserve Account are at least equal, to the aggregateprincipalamount
of Certificates then outstanding,,plus the AMOUi?t of interest then
due or thereafter to become due on such Certificates then but -
standing.
(4) The City shall next withdraw frcm the Rcvenua
Fund and transmit to the trustee for deposit into a separate
account to be known as the "Renewal and Replacement Fund", which
fund is hereby established,, the monthly sum of $250.00 No further
payments shall be required to be'made into such Renewal and Replace-
ment Fund when there shall have been deposited therein, and as
long as there shall remain therein, the sum of $25,000:.
The moneys in such Renewal and Fteplacement*Fund
shall be used only for the purpose ofpayingthe cost of extensions,
enlargements or additions to or the replacement of capital assets
of the system and emergency repairs thereto. 'Such.moneyd on
deposit in such fund shall also be used to implement the Reserve
Account, if necessary, in order to prevent a default in the payment
of the principal of and interest on the Certificates. The moneys
in such fund shall be withdrawn only upon the authorization of
the City Council and the consulting engineer.
(5) The balance of any ;revenues,in'the Revenue
Fund, after the above required current payments have been made
(including all payments required for any additional parity obli-
gations issued pursuant to this Resolution), may be used by the
city for any lawful purpose by the City.Council.
-22-
(6) Vhenever by roason of the insufficiency o£
:coneys on deposit in the Revenue Fund the required monthly payments
cannot be promptly made into the Sinking Fund, the Reserve Account
and the Renewal and Replacement Fund, the City shall forthwit-h'.
withdraw fromtheUtilities Tax Fund and transmit'to the trustee'
whatever sum shall be necessary to cure such existing deficit.
If the moneys on ,deposit in the Utilities Tax Fund are insufficient
to cure such deficit, the City shall forthwith withdraw from the
Franchise Tax Fund and transmit to ,the trustee whatever sum shall
be necessary to cure such existing deficit. If, hotoever, all of
the above required current payments have been made into the.Sinking
Fund, the Reserve Account and the Renewal and Replacement Fund,
the City may use the balance of moneys on deposit in such special
funds for any lawful purpose,
(7) The Revenue Fund, the operation and Maintenance
Fund, the Sinking Fund, the Reserve Account, the Renewal and Re-
placement Fund and all other special funds established, maintained,
and created by this Resolution shall constitute trust funds for
the purposes provided herein.for such funds. All such funds shall
be continuously secured in the same manner as state and municipal
deposits are required to be secured by"the Laws of the State of
Florida: Moneys in the Sinking Fund, the Reserve Account and the
Renewal and Replacement Fund may be invested ,by the City in
obligations -of the United States of.America or in time deposits
in banks or trust companies; provided, however,. that such invest-
ments of the moneys in the Sinking Fund shall -mature not later
than fifteen (15) days prior to the. date on which such moneys will
be needed to meet the purposes for which such moneys are held.
The investment of moneys in the Reserve Account and the Renewal
and Replacement Fund shall mature not later than January 1, 1575.
-23-
b:oneys in the Revenue Fund, the Utilities Tar. Fund, the Franchise
Tax Fund and the operation and`Maintenance Fund shall not be
invested at any time. Any and all Income received from such
investments shall be deposited into the Revenue Fund.
C. LE{IY OF EXCISE TAXES AND 140 REP84L. , The City will
not repeal the ordinances now Iin effect levying the excise taxes
and will not amend or modify said ordinances in any manner so as
to impair or adversely 'affect `the power and obligations of the
City to levy, and collect such "excise taxes or impair.or adversely
affect in any manner, the pledge of such excise taxes made herein
or the rights of the holders of the Certificates, The City shall
be unconditionally and irrevocably obligated, so'-long.as any of
the Certificates or the interest thereon are outstanding and unpaid,
to levy and collect such excise taxes, at the maximum rates per-
mitted by law, to the extent necessary to pay the principal of
and interest on said Certificates and to"make the other payments
provided for herein. This provision shall not be construed to
prevent reasonable'revisions of rates of such excise taxes as long
as the proceeds of such excise taxes to be"collected"by the City
in each year thereafter will be sufficient to pay the principal
of and interest on the Certificatesbecoming due and-to.make all
Sinking Fund, Reserve and other payments required by this Resolution
in such year,
The City has full power to irrevocably pledge such excise
taxes to the payment of the principal of and interest on the Certi-
ficates, and the pledging of said excise taxes in the manner pro-
vided herein shall not be subject to repeal,'modification, or
Impairment by any subsequent ordinance, resolution, or other pro-
cccdings of the governing body of the City or by any subsequent
act of the Legislature of Florida.
-24-
The plad_,e of the excise tw.cs ;.lade in this Resolution
:,`:all be for the benefit of any additional bonds payable on a
parity with the Certificates from the proceeds of the excise taxes'
to the same extent as :if such additional parity certificates had
been originally issued pursuant.to:tbis Resolution.
D, ttAINTMANCE AICD OPEP.ATiON. The City will inaintain
the system and all parts thereof in good condition and will operate
the same in an efficient and economical manner, making such expendi-
tures for equipment and for renewals, repairs and replacements as
may be proper for the economical operation and maintenance thereof..
E. RATES AND CHARGES. The City.will enact a rate
ordinance and thereby will fix, establish and maintain such rates
and will collect such fees, rentals or other charges for the
services and facilities of the system and revise the same from
time to time, whenever necessary, or uponthe recommendation of
tho consulting engineers; as will always prouide revenues suffi-
cient to pay :the operation expenses'of the system and, together
with the excise taxes herein pledged, 125% of .the maximum annual .
service requirements on the outstanding Certificates. Such rates,
fees, rentals or other chargds shall not be reduced so as to ba
insufficient to provide revenues for such purposes.
F. BOOKS Aim RECORDS. The City. shall also lcaep books
and records of the net revenues of ',the systemand.books and records
of the collection of the excise tares, hereinabove described, which
such books and records shall'be kept separate and apart from all
other books, records,and accounts of the City and any holder of
a CertificateorCertificates shall have the -right at all reasonable
times to inspect all records, accounts and data of.the City relating
thereto. -
The City oliall also, at least once a year, 60
clays after the close of the fiscal year, cause the books, records,
and accounts relating to the system and to the excise taxes to be
ed firm of certified public account
properly audited by a recogniz
-
ants and shall 'mail, upon request, and male generally available,
the report of such audits.to any holder or holders of Certificates.
Such audits shall contain a complete report of operations Of the
system, including, but not limited to, a comparison with the cur-
rent municipal budget. and with the operations of the previous
a schedule o£ insurance in existence,
years, the balance sheet,
a schedule of the application of all revenues Of the system, a
Schedule of the application of all proceeds of the excise taxes,
a schedule of reserves and investments and a certificate by the
auditors stating no default.on the part of the City o£ any cove-
nant herein has been disclosed by reason. of such audit. A copy
of such annual audit, together with quarterly operating statements
of' the system, shall regularly be furnished to William R. Hough
and Company, St. Petersburg, Florida.
G. NO SALE OR 14ORTGAGE. The City will not sell, mort-
gage, lease or otherwise dispose of property essential to th-
proper operation of the system until after all the Certificates,
and the interest due thereon, shall have been paid in full; extent
that any of.the property comprising a part of the system which
has became obsolete or has deteriorated so that the same is useless
may be sold'Or disposed of'by the City upon, the written approval
of the consulting engineers.
H. y*iSURANCB. For so long as any of the Certificates
are outstanding, the City caill carry adequate fire,and windstorm
-26-
insurance on all buildings and structures of the %•corks and proper-
ties of the system which are subject to loss through fire or wind-
storm, will carry adequate public liability insurance, and c;ill
otherwise carry insurance of all kinds and in the amounts normally
carried in the operation of similar facilities and properties in
Florida. Any such insurance shall be carried for the benefit o2
the holders of the certificates. All moneys received for losses
under any of such insurance, except public liapility,`are hereby
pledged by the.City as security for the Certificates herein
authorized, until and unless such proceeds are used to remedy the
loss or damage for which such proceeds are received, either by
repairing the property damaged or replacing'the•property destroyed
within ninety (90) days from the receipt of such 'proceeds.
I. CUIPLETIONOF PROJECT. The.:City will complete the
construction of the project as provided for in this Resolution
in an economical and efficient manner with'all practicable dis-
patch, and thereafter will maintain said sysEem in good condition
and continuously operate the.same in an efficient manner and at-
a reasonable cost.
J. No FR E`SERVICES. The City will -not rendar or cause
to be rendered any free services of any nature by its•system,'nor
will any preferentialrates be established' for users of the same
class; the City, including its departments, agencies and instru-
mentalities, shall avail itself of the facilities or services
provided by said system, or any part thereof, and the sane rates,
fees or chargas applicable to other customers receiving like
services under similar circumstances shall -'be charged to the City
and any such department, agency or instrumentality. Such charges
shall be paid as they accrue, and the City shall transfer from
_27-
its ganeral funds sufficient sums to pay such charges. The revenues
so received shall be deemed to be revenues derived" from the opera-
tion of the system, and shall be deposited and accounted for in
the same manner as other -revenues derived from such operation of
the system.
K. -FAILURE TO PAY FOR SERVICES.: Upon failure of any
user to pay for services rendered within sixty (60) days, the City
shall shut off or cause to be shut off the connection of such user
and shall not furnish him or permit him to receiva from the system
further service until all obligations owed. by him`to the City.on
account of services shall -have been paid in full. This 'covenant ,
shall not, however, prevent the City from causing any,system'con-
nection"to be shut off sooner.' If such sewer service' is shut off,
as aforesaid, then before such service shall be.restored, the user
thereof shall pay a reinstatement fee in an amount not less than.
the'cost.to the City of the cut off and such reinstatement_
L. MT.ORCEbi14T OF-COLLBCTIOIT. The City. will: diligently
enforce and collect or cause to be collected the rates,_fees and
other charges for the use'of'the services or facilities of the
system and the excise taxes herein pledged will prosecute and
take all steps, actions and proceedings for the enforcement and
collection of such sates, charges, ,fees and excise taxes as shall
become deliquent to the full extent-permitted'by the.Chartor or
authorized by law; and will maintain accurate records with respect
thereof; All such fees, rates, charges, revenues. and excise taxes
herein pledged shall, as collected, be held in trust to.be applied
as provided in.this Resolution and not otherwise..
M. R.a=IES, Any holder "of-theCertificates or.any
coupons.appertairing thereto, issued under the provisions of this
-2&-
col.ution or. any trustee acting for tha holders of such Ccrtifi-
cater may either at law or in equity, by suit, action, mandamus
or other proceedings in any court of competent jurisdiction, pro
tact and enforce any and all rights, including the right to the
appointment of a receiver, existing under the Laws of the State
of Florida, or granted and contained in this Resolution,, and may
enforce and compel the performance of all duties required by this
Resolution or by any applicable statutes to be performed by the
City or by any officer thereof, including the collection of excise
taxes.
Nothing herein, however, shall be construed to grant
to any holder of such certificates any lien on any real property
of the City,
N. ANINUAL BUDGET. The City shall annually, at least
forty-five:(45) days preceding each of its fiscal years, prepare
and adopt.by,resolution of its governing body,,a detailed,budlet
of the estimated'e::penditures for operation and maint•"enance of
the system during such ne.:t`succeeding fiscal year. Plo expendi-
tures fortheoperation and maintenance of the system shall be
made in any fiscal year in excess of the amounts provided therefor
in such budget without a written` finding and recommendation by
the general manager of such system or other duly authorized officer.
in charge thereof, which finding and recommendation shall state in
detail the purpose of and necessity for such increased axpond17
tures for the operation and maintenance of said system and no such
increased expenditures shall be made until the governing body of
I
he City shall have approved such finding. and recommendation by
a resolution duly adopted. No such increased expenditures in
oxcess of ten per centum (10%) of the amount provided therefor
in such bull et- shall in any event be :.lade except upon the further
-29-
C..r.LiiLcation of the consulting cngine�rs that such iacrcascu
_:.,x n;.litures arc necessary and essential to the continuance in
operation of said system. The City shall mail copies of such
annual budgets and all'."resolutions authorizing_ increased expendi-
tures for operation and maintenance to Y7iiliam R. Hough and
company, St. Petersburg, Florida and to any holder or holders of
certificates who shall file his or their address with the City
and request,in writing that copies c£ all such budgets and r6solu-
tions be furnished him or them and shall matte availablo'such
budgets and all resolutions authorizing increased expenditures
for operation and maintenance of the system at all reasonable
tires to any holder or holders of Certificates, or, anyone acting
for and in behalf of such holder or'holders.
o. ISSUANC$ OF OTHER OBLIGATIONS. The City will"not
issue any other obligations, except under the conditions and in
tho manner provided herein, payable from the revenues of the
system or from excise taxes, nor voluntarily create or cause to
be created any debt, lien, pledge, assignment, encumbrance or
other charge having priority to or.being on a parity with the lien
of the Certificates issued pursuant to this Resolution and the
interest thereon, upon said revenues or excise taxes. Any other
obligations issued by the -City, in addition to the Certificates
authorized by this Resolution or additional parity obliyatigns
provided for in Section 16 P, payable from said revenues and excise
taxes, shall contain an express statement that such obligations
arc junior and subordinate in all respects to the Certificates
issued pursuant to this Resolution as to .lion on and source and
security for payment from said revenues.and said excise taxes.
-30-
P. ADDITIONAL PARITY C-MTIFICATES, The City reserves
tha right- to issue additional certificates payable from and
secured by a pledge of the net revenues of the system and the
proceeds of the excise taxes on a parity with the Certificates
subject.to the following conditions and provisions:
1. (a) Such `.additional parity certificates shall not
exceed the principal sum of $250,000 and shall be issued solely
to provide funds to complete the project hereinabove provided_
(b) There shall first have been obtained and filed
with the City Clerk a certificaEe o£ an independent certified
public accountant of suitable experience and responsibility stating:
(i) that the boo}cs and records of tha City relating to,.the system
and to the collection; and receipt of the utilities tax`have been
audited by him; (ii)_setting:forth the annualnetrevenues of
the system and the proceeds of the excise taxes for each o£ the
two fiscal years immediately. preceding the date of the,issuance
of the proposed parity certificates with respect to which such
certificate is made and (iii) that the annual amount of the sum
of such net revenues of the system and the proceeds of the excise
taxes for each of the two immediately preceding:£iscal years shall
equal not less than 125°; of the maximum combiiied annual principal
and interest requirements which will becone due in any year.there-
after, on all outstanding Certificates and all additional parity
certificates, if any, then outstanding and on the .additional parity
certificates with respect to which such certificate is made; 'or
2. (a)Such additional parity bonds shall,be issued
solely for the purpose of paying the cost ot'additions extensions,
improvements and repairs to the system.
-31-
(b) Therc shall `-irst have been obtained and moiled
the City Cie-,!, a certificate of an independent certified
7ublic accountant of suitable experience and responsibility stating:
(i) that .the boo7cs and records of the City relating to the system
and to the collection and receipt of the excise taxes have been
audited by him; (ii) setting forth the annual net revenues of
the system and the proceeds of the gtillties tax for each of the i
two fiscal years immediately preceding the date of the issuance
of the proposed parity certificates ,.ith respect to which such
certificate is made; and (iii) that the annual amount of the .
sum of such net revenues ofthesystem and the proceeds of the
c cIse
1SX s taxes for, each of the L%ao irnediately,pr¢ceding fiscal
years shall equal not less .than 150;; of the maximum combined annual
principal and interest requirements '%inich will become due in any
year thereafter, on all outstanding Certificates and all additional
parity certificates, if any,` than outstanding and on.the additional
act to which such certificate made;
parity certificates with resp
and
3. The parity certificates to be issued shall mature
on February 1 of each year, commencing at-laast one year after
completion'of the project,to be financed.-by the issuance of such
certificates, and the interest thereon shall be. payable semi
annually on February,i andAugustl of each year; and
4, The City shall not be in default''in complying e:ith
any of the covenants and obligations assumed under this Resolution
and all payments required by this Resolution to be made into the
funds and accounts, established hereunder shall have been made
to the full extent required; and
5. prior to the issuance of any additional parity corti-
ficatcs hereunder, the City shall at least six months prior to
the aut:norication thereof notify ,illiam R. &ough V-rd Cor.._any,
_3�_
st. Petersburg, Florida of its intention in this regard; and
6. The resolution authorizing the issuance of such
additional parity certificates shall provide that the interest
payable therein during the period of construction of the project
to be financed by the issuance of such certificates shall be
payable out of "a portion of the proceeds -derived -from the sale
thereof; and
7.` In determining the amount of net revenues for the
purposes of the above paragraphs the Consulting Engineers may.
adjust net revenues by adding thereto the following -
(a) The net revenues (computed for such 'facility
on the same basis as net revenues are computed for the system)
of any sewer'system which the City might have constructed or
acquired previous to the issuance of such additional parity certi-
ficates or which the City shall be acquiring from proceeds of such
additional parity certificates, and which, 'in the case of the
acquisition thereof, has'been,operating for a part.of• the same
base period or periods.
(b) ,In the event a'changa has been made in the
rate schedules for services from the system,prior to theissuance
of the proposed additional -parity'.certificates for apart of the
same base period or periods and such change has resulted in an
increase in net revenues, 'Auighty r'cent-(80%) of an estimate
made by such Consulting Engineers of such additional net revenues
for the same base period or periods.
0. 14 NbATORY CONNECTIONS. The City will, within sixty
(60) days after completion o£ the project, to -the full extent per-
mitted by law, require all lands, buildings and structures within
the City, within 150 feet of such system or any part,thereot, or
;.i c, can u c Lhc facilities and services of such system, to
connect with and use such facilities and services, to pay a con-
nection charge in the amount of $ and to cease all
other means and method for the collection, -purification,. treat-
ment and disposal of sewerage and waste matter. The City shall
take action against any one violating or.refusing to,comply with
the requirements of this section to the full extent permitted
under the Charter of'the'City,
R. SUPERINTENDENT_OF PUBLIC V70p.XS. The,Superintendent
of public c4orks, as required by the City charter,. shall be respon-
sible for the operation and maintenance of the system. The City '
will require all employees and all persons who may have possession
of money derived from the op.ration of the systcdn to be covered
by a fidelity bond written'by a responsible indemnity company in
reasonable amounts adequate, to protect the City•from loss.
3. NO CObLpSTING SYSTZi4. To the full :extent permitted
by law, the'City will not grant, cause, consent to, or allow the
granting of any franchise or permit to any person, firm, corpora-
tion or body, agency of instrumentality whatsoever, for the furn-
ishing of sower serylse to or within the City.
T. CONSULTING EIIGIYZc RS. The, City shall employ,
qualified consulting engineers, of national reputation, in an
advisory capacity to inspect the .system annually and makO reports
and recommendations with respect thereto, with respect to any
proposed changes in the schedule of rates, fees' and. charges, and
concerning the operation, maintenance, replacements, property
addl.tions and improvements thereto: Upon request of any holder
of Certificates, a copy of each such annual report shall be mailed
-34-
osta�e prepaid to suer. holder, a copy thereof shill remain on
file with the City Clerk for public inspection and a. copy shall
be mailed to William R. Hough and Company, St. Petersburg, Florida.
SECTION 17. APPLICATION OF CERTIFICATES PROCEEDS.
any Or'.all Of the
From the moneys received.£rothe sale Of
ursuant to this ResolutionCerti-
m
ficates originally authorized and issued p
first deducted and deposited as
the following amounts shall'be
follows:
A, An amount equal.to the interest accruea or.to.accruc
on said Certificates to August 1_1966 shall -be deposited in the
Sinking Fund and used to pay interest on -the Certificates.
sct 0£ $50,000 shall be transmitted to the trustee
B. Thesum.
for deposit in the Reserve Account.
C. A sum not exceeding $42,000 shall. be held in ,a
romise o£
separate escrow account pending the settlement and comp
e and owing to Palm Beach Investments Company, - Inc.
any amounts du
tlement of the amounts due:and oviing
After full and complete set
Company, Inc., the balances romain'ing
to Palm Beach Investments
ll be transmitted to the trustee for•
in such escrow account sha
deposit in the Reserve Account..,.
D. The remaining moneys derived from the sale.of,such
Certificates shall be deposited by the City in a special bank
account to be known as the "Sewer System Construction Fund", (here -
n Fund"), which is hereby
inafter referred to as the "Constructio
ch fund shall be kept separate and apart from all
created. Sulied
other accounts of the City and shall -?e withdrawn, used and app
City—
by the City solely to the payment of the cost of. acquisition,
"on,: and completion of the system of the City, purposes
c
Pose whatsoever. It for
incidental thereto, and for no other pur
-35
any reason such proceeds, or any part thereof, are not necessary
for, or are not applied to, such purposes, them such unapplied
proceeds shall be deposited by the City in the Reserve Account.
All such proceeds shall be and constitute a_trust fund for such'
purposes and there is hereby created a lien upon such moneys, until
so applies, in favor of the holders of the Certificates.
Any funds on deposit in the Construction Fund which in
the opinion of the City Council acting upon the recommendation
of the Consulting" Engineer are not immediately necessary for
expenditure, as hereinabove provided, may be invested in direct
obligations of the United States of America maturing as recommended
by the Consulting Engineer. All such securities shall be held
by the depository bank and all income derived therefrom shall be
deposited in the sinking Fund herein provided for.
immediately prior to the delivery of the Certificates
to the purchasers thereof, the City shall enter into a written
agreeman with the depository bank for said Construction Fund,
which said agreement shall provide that all expenditures or dis-
bursements from said Construction Fund shall be -made only after
such expenditures or disbursements shall have been approved in
writing by the Consulting Engineer and"the City Treasurer. The
date of completion of the project shall be determined by the
consulting Engineer who will certify such facts in writing to the
City coencil;
SECTION 18. INITIAL SCHEDULE OF RATES. The "initial
schedule of rates, fees and other.cba-rges tb be imposed for the
servicei; or facilities furnished by the system, which initial
schedubt shall be effective immediately -upon the date o comple-
tion of the system, but which may be subject "to such revision
-36-
i:ro:.time ko tin hereafter as nay be necessary to carry out the
rcquir.=ont::a of this Resolution shall be as follows:
Customl:r Classification Monthly Char4e
Reii3.3ential - 3..73
�Yngle Family (single bath) $.,50
Additional Baths
"Multiple Family & Apartments -.class 1
(having more'than l bedroom per unit)
First Unit 2_75
Additional Units
lultiple Family. & ?.partments - class; ll-
thaving,l bedroom or less per unit) 3.75
First Unit .
Additional Units 2-25
Mct is .& Trailer Parks 3.75
First Unit or space• 1.75
Additional Units or Spaces
Do.�itories 3.75,•
First Unit 1.25
Additional Units 6.25
pudic Buildings 3.75
Churches 10 of Plater Bill
Commercial & Industrial with minimum of
53:75.
Auch rates, fees and other. charges for the use of'the
services 4 facilities of the system shall be included in monthly
statementn renaered to the users of the system' In the event the
amount due for such use is not paid in 'full by-the 15th day of
the month following that for which a statement has been rendered,
then an amount equal to five per'aentum (5%) of. such monthly ardount
due shall be added ,thereto as a late charge.
Nothing herein contained, shall be construed to prevent
or prohibit the City from enforcing or collecting the rates, fees
and other charges for the use of the services and facilities of
the system in the event that such action is necessary or desirable.
SECTION 19. MODIFICATIOPI AND AMWIDMENT. No material
modification or amendment of this Resolution or of any resolution
amendatory hereof or suppleme-ntal'hereto, may, be made without the
consent in writing of the holders of two-thirds or more in princinal
-37-
amount of the certificates t -en outstanding, provided, hor:evcr,
that no modification or amendment shall permit a change in the
mat,unity of such Certificates or a Yedgction in the maturity of
such Certificates or a reduction in the rate of interest thereon,
or in the amount of the principalobligation or affecting the
unconditional promise of the City to levy and collect such rates,
fees and charges, and said excise taxes, as herein provided, or
to.pay the principal of and interest on the Certificates as the
same shall become due from the revenues of the system and said
excise taxes, or reduce such percentage of holders of such Certifi-
cates, required above, for such modificationsor amendments, 'without
the consent of the holders:of ail'of such Certificates,'
SECTION 20„ SEVERABILITY OF INVALID PROVISIONS, If
any one or more of the covenants, agreements or Provisions of this
Resolution should be held contrary to any express provision of
law or contrary to the policy of express -law, though not expressly
Prohibited, or againcb public policy, or'shall for any reason
whatsoever be held invalid, then such covenants; agreements or
provisions shall be null and void and shall be'deemed`separate
from the rtlmaining covenants, agreements or provisions, and in
no affect the validity of all the other provisions of this Resolu-
tion or of .the Certificates or coupons issued thereunder:
SECTION 21„ VALIDATION AUTHORIZED. T,•David Burns,
Esquire, City Attorney, be ,and he is hereby authorized and directed
to.institute appropriate proceedings in the Circuit Court of the
Ninth Judicial Circuit of Florida, ;in and for Brevard County,
Florida, for the validation.of said Certificates and the•.proper
officers of the City are hereby authorized to verify on behalf
Of the City any pleadings in such proceedings.
-36-
_. :public hearing relating
?2 PII3LIC HEF:T2 ':G.
to the initisl schedule o£ rates,
zes and charges to be -made for
e
services and facilities o£
the use of tthe system shall beheld
l -'' a a.cloe]e,
t Annex
at the City .211/on Fehru
ar `� 19b5 at
t Clerx is
her directed to publish a notice one
%.M. The Ci Y a newspaper
Limc in the Cocoa: -Tribune
ubed in Brevard County,
of general eirculation'in the City Plish
at least
Florida (there being no nawspapar published in the City)
ten days prior to the date £i"d therein, such
o£ the hearing as
notice shall'be in substantially the following form:
ERESTED PROSPECTIVE USERS
NOTICE TO ALL INT
AND FACI_+TITIES OF RTHE SANITAY
OF THE SERVICES
SEWER SYSTEt9 Orr^,THE CITY OF CAPE CANAVERAL.
FLORIDA.
NOTIC3 IS gr-gggY GIVEN to all prospective ucers for the
sewer system of Cape
services and facilities of the sanitary to 0.2 property
tenants,'
Canaveral, Flprida, all owneia, .
and occupan
to be served thereby and all other persons interested therein,
that a public hearing relating_to the initial 'schedule of rates,
use o% such services and
Ices and;charges-to be made for the oO
tacilitias of the sanitary sewer system wall be held at
2~
.M. Febrt�aT L
1965 at the
day of
o'clock on the
gall in Cape
regular meeting place o£ the Council in the City parsons
e and place any interested
Canaveral, Florida at which .tim
will b he concerning the proposed 11 initial rates, fees and
and Facilities of the sanitary
charges for the use of the services
sewer -Y-t— as set forth belo-4:1
-39-
Customer Cla nification
Monthly Charge
SECTION 25. SUBSTITUTIO_: OF rRacICAISE TAY. The City
herebycovenants with the holders of the Certificates that, in
the evi:nt it s'�iall acquire the electric power and distribution
Facilities of the Florida Powernd rl`hr Company
within the City, pursuant to the provisions of the ordinance
enacted A„r ist- PS 1962 or otherwise, or in the event
it ahall acquire, construct or operate an electric power and
distribution system %vithin the City in place of the electric
power and distribution system of the -pi nrtiia power anrY'rsgr,t
Comps. ,� n ' arc th rranchise taxes are not
available to: the City to mane •the payments therefrom Yequiree
pursu¢:nt to the provisions of this Ordinance,'the City will make
payment from the net revenues first available to it from the,
operation of any such electric power.ard.distribution system so
owned, acquired, constructed. or operated by it of the amounts
requited to be paid from the franchise taxes pursuant to the "
provi:aions of this Ordinance.
ADOPTED by -the City Council of the` -City of Cape Canaveral,
Florida, on ct:e _:L]tlay of 1965•
714ay.
4ty
.
ler -
First Readingtand Approval January 25, 1965.
Public Hearing': 'Second and Final Reading'February;5, 1965•.
Posited the 26`:h day of January,• 1965
AI-PROy TO F����I:
i
L..?, At orne, 41-:.. _
RESOLUTION NO. 65-7 AS A3flL• MDED
A RESOLUTION PROVIDING FOR THE ACQUISITION AND
CONSTRUCTION OF A SANITARY SEP7ERAGE SYSTEI4 OF
t, THE CITY OF CAPE CANAVERAL, FLORIDA; AUTHORIZING
`. THE ISSUANCE OF $1,350,000 SANITARY SEWER -REVENUE
CERTIFICATES TO FINANCE THE COST THEREOF; PRO-
VIDING FOR THE RIGHTS OF THE HOLDERS OF SAID
REVENUE CERTIFICATES; PLEDGING FOR THE PAYMENT
THEREOF THE NET REVENUES OF THE SANITARY SEWERAGE
SYSTE14, THE PROCEEDS OF THE UTILITIES TAX AND
THE PROCEEDS OF THE ELECTRIC FRANCHISE TAX;
FIXING AN INITIAL SCHEDULE OP RATES, FEES AND
CHARGES; PROVIDING FOR A PUBLIC HEARING; AND
PROVIDING FOR AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF.CAPE
CANAVERAL, FLORIDA, that:
SECTION 1. AUTHORITY FOR THIS RESOLUTION. This.Resolu-
tion is adopted pursuant to the provisions of'Chapter 184, Florida
Statutes, and other applicable provisions of law.
SECTION 2, FINDINGS. It is hereby found and determined
as follows:
A. The City of Cape Canaveral, Florida (hereinafter
sometimes called the "City") does not own, operate or maintain a
sanitary sewerage system (hereinafter sometimes referred to as the
„system"):
B. The acquisition and construction of such system
(hereinafter referred to as "project") is necessary and essential
in ocder to preserve the public health and safety of the citizens
of t%e City and the inhabitants of the surrounding environs, and
it is essential for the physical and economic welfare of said City
that such project be constructed.- The plans and -specifications
for'such improvements as prepared by Briley,.Wild & Associates,'.
Consulting Engineers of the City have been,adopted and al5proved
by.tae City Council and are presently on file ai the office of the
City, Clerk,
J. The City, pursuant to non -emergency ordinance No.
64.10, onar,ted April 28, 1964, and Section 167.431, Florida
i
Statutes, Tias levied a tax on every purchase of electricity,,
metered or bottled gas (natural, liquified petroleum gas or
manufactur44d), water service and telephone and telegraph. service
within the corporate limits of the City, (which taxes are sometimes
hereinafter referred to as ,utilities tax-). The proceeds of the
utilities tax are not now pledged.or encumbered in any manner.
1). The City, pursuant to the provision_ of Ordinance
1�0. 5-62, anacted Augu3t 28, 1962 entered o an agreement
with tl.e Florida Power and Light Company granting cc latter
an electric franchise for a'period of thirty years t..',.he privilege
of operating and maintaining electric light and power facilities
in the city. In return for such privilege the Florida Power and
Light Company has agreed to pay a continuing franchise tax to the
City (such tax being '.zereinaftet referred to as the "franchise tax").
The proceeds of the _ranchise tax are not now pledged or encumbered
in any manner.
H.. The estimated gross annual revenues to be derived
from the operarion of the system after the completion of,the project
is an average of $144,866.
2. The estimated annual cost of maintaining, rapair-
ing and operating the system is an average of $37,446.
3. The est:.mated annual.proceeds,of the•utilitics
tax is an average oz 476,767.
4. ^she estimated annual proceeds of the franchisa
tax is an average of $42,721:
F. Tha estimated annual not revenues to be hereafter ,
derived from the operation of the system, the proceeds of the
O'M
lilies tax anc the proceeds of the franchise tax (hereinafter
collectively referred to as "excise taxes') will be sufficient to
pay the principal A)f and interest on the Certificates, herein
authorized, as the!same become due, all sinking fund, reserve and
other payments herein required.,
G. TncA. stimated cost of said pro ec:t is the sum of
i
� 1, 560, 000. Of SU':h _^ost $1,350,000 shall be pro•. -ad from the
gale of Ccrtificat;ns herein authorized and the bat -.,ca shall be
3
provided by the Ci4y from other available sources. Such coat, in
addition to the specific items contained in the plans and specifi-
cations approved by the City Council, shall, be deemed tc include
the acquisition of any existing sewer facilities, or o `-and or
interest therein, or of any fixtures or equipment or properties
necessary or convenient thereform engineering and legal expenses,
iiucal expenses, .a -lenses for estimates of costs and o£ revenues,
expenses for planst specifications and surveys,administrative
expenses, interest during construction, if any, the establishment
of reserves and su.:t other expenses as may be necessary or incidental
for the fidancin9 authorized by this Resolution,`the'construction
of the project and the placing of the same in operation..`
H. The principal of and interest on the Certificates
to be issued pursuant to this Resolution.and all of the reserves.
sinking fund or other payments provided, for' will be paid solely
from the net revenues derived from the operation of the syste. -..d
the proceeds of the excise taxes_ The City will not be a,__horized
to levy ad valorem taxes on any real property therein to pay the
principal of and interest on the Certificates,'herein authorized,
or to make any of the reserve, sinking fund or other payments
-3-
nrovic d for herein, Such Certificates shall notconstitute a lien
upon t-�a syste;n or upon any other propsrty whatsoever of or in the
i
City.
? SECT}:ON 3, DEFINITIO$S. The following terms in this
Rasolu:'lon shall have the. following meanings, unless the text
I
otherwl,3e expr,rZsly requires.
A. "Certificates" shall mean,the $1,350,0;,3 Sanitary
Sower Revenue'Certificates originally authorized.to D% issued put -
quant tj) this.'Rasolution, the interest coupons appertaining thereto,
and alski any additional parity certificates, and the interest
coupons"appe-taming thereto,.hereafter issued pursuant to and
under tAo terms; restrictions and conditions containec i this
Resolut;*,on.
B. "Iolder of Certificates" 0:r "Certificate Holder",
or any ,jLm ilar terms, shall mean any person who shall be the bearer
#, f
or owne,of C•`rtiricate or certificates, registered tc Dearer
or not r=egistErod, or the registered owner of any such car:zificate
or Certi'ric,cos which shall at the time bL: registered ocher than
to boarey or the bearer of any coupons representing interast accrued
or to ac?, :rue on.said Certificates,
C. "Cross Revanues', or "Revenue" of the syste:.'shall
mean allifees, rentals or othe7 charges or income received by the
City frwa thoperation of the system.
D. Operating Expenses" or "Cost Operation. and 2,ain-'
r
t,anance";of cha'system shall mean the current expenses, paid or
a,ccrued,'of thc4 operation, maintenanca and repair of the 'system
and its facilities, as calculated -in accordance with sound account-
ic:y practices,. and shall include without limiting the. generality
0w the foregoing, ins;;rance premiums, ad-zinistrative expenses of
-4-
the City relating solely to the system,labor, cost of materials
aa:i supplies used for current operations and charges for the accumu-
lation of appropriate reserves for current expenses not annually.
recurrent, but which are such as may reasonably be expected to be
incurred. Operating expenses shall not include any allowance for
depreciation or renewals or -replacement of capital assets of the
E. "Net Revenues" of the system shall mean the gross
revenues as defined in subsection C after deducting only operating
expenses of the same as defined in subsection D.
F. "Utilities tax shall mean theproceedsderived by
the City pursuant to Ordinance No. 64.10, enacted ou zpril 28, 1964,
upon every purchase of electricity, metered or bottled gas (natural,
li;uified petroleum gas or manufactured), water'servica and t--Ie-
phone and telegraph service within the corporate limit5.of the City,
unier the authority of Section 167.431, Florida Statut..s.
G. "Franchise tax -shall mean any and all mo-ieys received
by the City from the Florida'Power and Light Company. -its legal
representatives, successors or assigns under'the electric franchise
granted pursuant to Ordinance No. 5-62, enacted August 28, 1962,
gr..ntin, such company the right to construct, maintain and operate
el+-ctrLc light and power facilities for the purpose of supplying
S
ulI:ctricity to the City or its inhabitants.
k
H. "Excise taxes shall mean collectively, the utilities
taj and franchise tax.
I. "Fiscal year" shall mean the period commencing on
Oc;ober. 1 of each year 'and continuing to and including the succeed-
in`; SeYtember 30.
J. v7ords importing singular number -shall include the
plural number i.n each case and vice versa, and words importing
persons.shall '_nclude firms and corporations.
SECTION 4. RESOLUTION TO CONSTITUTE CONTRACT. In con
sideration of the acceptance of ,the Certificates authorized to be
issued hereunder by those who shall hold the same from.time to time,
this ReSOluti;On shall be deemed to be and shall constitute a,con-
tract betweor.'the City and such holders. The covenants and agree
inents herein set forth to be performed by the City shall be for
the equal benefit, protection and security Of the legal holders of
as and the coupons attached thereto,
any and all of such Certificat
all of whicb;:sball be of.equal rank and without preference, priority
or distinction of any of the Certificates or coupons over any other
thereof., except as expressly provided therein and herein.
SECTIOlq S. AUTHORIZATION OF CERTIFICATES AND coPTSTRUCTION
OF pROyECT. subject and pursuant to the provisions of this Resolu-
tion, certificates of the City to be known as '+Sanitary SeGrer
Revenue Cort•ficates", herein gometimes referred to as "Certificates
are he;:eby authorized to be issued in the aggregate principal amount
of One Million. Three Hundred Fifty Thousand Dollars '($1,350,000).
The acquisition and construct' -on of the project,, the cost of which
is to be paid in part from the proceeds of the. Certificates, is'
hereby authorized.
.iCTION 6. DESCRIPTION OF CERTIFICATES. The artificates
shalltbe dated February 1,.1965; shall.be numbered consecutively
from •ane upward; shall be in the denomination of $5,000.00 each;
shallibear interest at not exceeding the legal rate;
such interest
i
to bepayablesemi-annually February 1 and August 1 of each year,
and £hall mature serially in numerical order, lowest number's first,
ur, F'6�ruac^ 1 in the years and amounts as follows-..
i -6-
vgAg PRINCIPAL
{I 1932 $55,000
19#i9 $ 5,000 1983 55,000
1c;70 10,000 1984 60,000
1c>yl .15,000 :1985 ` 60,000
1!t72 20,000 1986 65,000
1.73 30,000 1987 65,000'
1'174 35,000 1988 70,000
1:75 40,000 1989 75,000
10G 40.,000 1990 75,000
45;000 80,000
1f )77 45.000. 1991
85,000
3,979 45,000' 1992 85,000
19979 56,000 1993 90,000
1.980 50,000 1994 -
11981 shall
'shall be issued in coupon f
Such Certificatesorm%
be pa;table with respect to bin lawful
principal and intere"
moneyiof.t'.ie united States of America
G approval Ot
a at such bank or banks to
ioval tho original
be de.tersiined by the City, `subject to th
thereon;
purc,asers of the Certificates, Prior to the delivery
Y'
rinterest from their date, payable in accordance
and shall bear
with' and upon surrender of the appurtenant interest coupons as
they severally mature. The
SECTION 7. EXECUTION or CERTIFICA ES AM C' SPONS.
Certificates shall be executed in the name of the City by the
City
Clerk, and its corpora._=. seal or
Mayor a'Ad at::�sted by the
thereon.
a facsimile thereof shall be affixed thereto or reprocuced
may be
Ilay
or or the City C1erT:
The facsimile signatures of the that at
he Certificates, provided
imprinted or reproduced bn t
all be manually
least one s_gnature required to be Placed thereon sh
one or more of the officers who shall
suescrii,ed- In case any
have signed or sealed any of tine Certificates shall cease to be
before the Certificates so signed and
such officer of the City such Certi-
s:.ale� sly sold and delivered,
hall have been actual
as herein provided
_icata� may,
nevertheless be sold and delivered
and may be issued as if the person who signed or sealed such
Certificates had not ceased to hold such office. Any Certificate
-7-
;,;ay be signed and sealed on behalf of the City by such parson who
at the actual tine of the execution of such certificate shall hold
the proper office in the City, although at the date of such Corti-•
siratefi such.person may hot have held such office or may riot have
boon sj) alIthorized,
i
rTho coupons attached to the Certificates shall be authen-
i
ticatc?
,,,cam therefor. Attar such registration as to principal
my no tranufcr of the Certificates shall be valid unless made
at said office by the registered owner. or by his duly authorized
similarly noted on the Certificates,
agent, or representative and
ischarged from registration by being
but the Certificates may be d
ransferred to bearer and thereupon transferability
d. At the option of the ty
in li7ce manner t
by delivery shall be restoreholder,
Certificates may be thereafter again from time to times registered
or transferred to bearer as before. Such registration as to
principal only shall not affect the negotiability of the coupons
Which shall continue to pass by delivery.
SECTION 9. CERTIFICATES MUTILATED, DESTROY STOL S
i icate shall become mutilated, or be-
OR
eOR LOST.I In case any Certif
the City nW in its discretion issue
destroyeu, stolen or lost,
new Certificate with all unnatured coupons attached
and deliver a
f an
of like tenor as the Certificate and attached coupons - Y,
so mutilated, destroyed, stolen or lost, in exchange and substi-
ertificate, upon surrender
Lu tion for such mutilated Cand canc�l-
lation of such mutilated Certificate and attached coupons, it any,
or in lieu of and substitution for the.Certiticate and attached
coupons, if any, destroy, stolen or lost,
and upon the holder
ed
ottnership thereof and satisfactory
furnishing the City proof of his
aa3 with such other reasonable regulation and
indemnity complying wi
conditions as the City may prscribe and paying such y pauses aprescribe
surrendered
It
All Certificates and coupons
the City may . .'.
I£ nay such
shall be cancelled by the Clock of the City. Certifi-
cates or coupons shell have matured or be about to mature, instead
`Certificate or coupon,
of issuing a substitute
be-City may pay
the same, upon being indemnified as aforesaid, and if such
MIM
Notice of such redemption shall be published at least
once at least thirty (30) days prior to the redemption date in
a financial journal published in the Borough of Manhattan, City
and Sttte of New York, and further that written notice of such
redemp':ion shall also be given to the paying agent named in said
Cortiflctes at least thirty (30) days before said redemption date.
i SECTION 11. APPROVAL BY CITY ATTORNEY.. The City
Attorr4ly shall certify on the face of each Certificate that such
CertiAc4te and the attached coupons have been approved by him
as to ro,,a,language and execution.
f' SECTION 12. FORM OF CERTIFICATES AND COUPONS. The
text!�I the Certificates, the interest coupons to be,attached
there: and the validation certificate to be endorsed thereon
shall t)e:in substantially the following tenor, with such variations,
omissat>ns and insertions as may be necessary, desirable, and
authj.Lzed or permitted by this Resolution or any subsequent
resolt:ircion adopted prior to the issuancethereof:
No. $5,00.0
. r.
UNITED'STATES OF AXERICA
a STATE OF FLORIDA
CITY OF CAPE_' CANAVERAL
COUNTY OF BREVARD
SANITARY SEWER REVENUE CERTIFICATE
KNOW ALL MEN BY THESE PRESENTS, that the City of Cape
Canavrsal'in Brevard County, a municipal corporation of the State
of Flc:rida, (hereinafter referred to as "City"), for value received,
herepy_ promises to pay to the bearer hereof, or if this Certificate
be rec;istered to the registered holder as herein provided, on the
first*.day of February, 19_, solely from the special funds here-
inaftwr mentioned, the principal sum of
FIVE THOUSAND DOLLARS
-11-
from such special funds, interest on such grin -
and to pal solely
c+_pal sum from the date hereof at the rate Of
per
centum (_
�) per annum, until the payment of such principal .
ble semi-annually on the first day
sum, such interest being paya
of February and the first day of August of•each year, but only
in the case of interest payable at or prior to.maturity o£ this
Certificate upon the presentation and surrender of the annexed
coupons as they severally mature. Both principal of and interest
in lawful money of the United
on this Certificate are payable
states of America at the
or, at the option o£ the holder,
at the
This Certificate is one of an authorized issue of Certi-
incipal amount of $1,350,000 of like
ficates in the aggregate pr
nber, interest rate and
date,
-rnor and effect, except as to nu
portion Of of the cost of
date 011maturity, issued to finance a p
n'of a sanitary sewer system of the
acquisition and constructio
underthe authority
City (hereinafter referred to as the "system").
of and in Lull'compliance with the constitution and Statutes of
ter 18c, Florida Statutes,
the State of Florida, particularly Chap
5_7 duly
adopted on Ja:ary 25
and Resolution No.
of recY'aa�y, 1955,
tnc;:�ed 01, trir 5th day „ and is subject to
(hereinafter referred to as the Resolution
c£ such Resolution.
all the terms and conditions thereto
This Certificate and the coupons appertaining
d secured by a prior lien upon and pledge
are payable solely from an
rived from the operation Of the system'
of the net revenues de
on every purchase of
from the proceeds derived by, the City up ;
electricity, metered or bottled gas (natural, liquified petroleum
gas or manufactured), water service and telephone and telegraph
-12-
service within the corporate limits of the City, under the
authority of Section 167.431, Florida Statutes; and from the
proceeds of a franchise tax received by the City from the Florida
Power and Light Company pursuant to ordinance No. 5-62, enacted
(�.r ,_r;L 8, lr,•:i2 The lien on and pledge, of the proceeds of
the franchise tax are subject to being extinguished and released
upon the happening of certain events, all as provided in the
Resolution. This certificate does not constitute an indebtedness
by t..,. City within the meaning of any constitutional, statutory
or cl_irter provision or limitation, and it is expressly agreed
by Nsg�! holder of this.Certificate that such holder shall never
have#thz right to require or compel the exercise of the taxing
pow -I of the City for the payment of the principal of and interest
on tlis Certificate or the making of any sinking fund, reserve
or o�ner paymants provided for in the Resolution authorizing this
issu,;t)f Certificates. 'Thio Certificate and the obligation
evie,It:3d thereby shall not constitute a lion upon the system or
any ;fait thereof, or on any otherpropertyof the City,. but shall
Coils''i'::ute a lien only upon, the net revenues derived from the
operftlon of.such system and the proceeds of such utilities tax
and ':ranchise tax (hereinafter collectively referred to as "excise
taxer") all in the manner provided in the Resolution.
The City in such Resolution has covenants; anc agreed
with the holders of the Certificates of this issue to fix,' estab-
lish'and maintain such rates and collect such fees or other el-arges
for :he services and facilities of its system and to revise the
same: from 'dime to time whenever necessary, as will always provide
revenue sufficient to pay the cost of operating and maintaining
the system, and, together with the proceeds from the excise taxes,
125; of the largest amount of principal of and interest on the
MWIM
Certificates of this issue becoming due in any succeeding year and
all reserves or other payments provided for in said Resolution,
and all other obligations payable on a parity therewith, and that
such rates, fees or other charges shall not be reduced so as to
be 1.nsufficient to provide revenues for such purposes, The City
has entered into certain further covenants with the holders of
the.Certificates of this issue for the terms of which reference
is made to the Resolution,'
It is hereby certified and recited that all acts, con-
ditions and things required to exist, to happen and to be performed
precedent to and in the issuance of this Certificate, exist, have
hap;>ned and have been performed in regular and due form and time
as +squired by the Statutes and Constitution of the State of
Flo'ida applicable thereto, and that the issuance of this Certi-
fic.te and of the issue of Certificates of which this Certificate
t
is <*,ne, does not violate any constitutional, statutory or charter
t
limJtation,
This Certificate and the coupons appertaining thereto
ares and have all the qualities and incidents of a negotiable
insUrument under the law merchant and the Negotiable Instruments
Law of the State of Florida, and the original holder and each
successive holder of this Certificate or of the coupons appertain-
ing thereto, shall be conclusively deemed by his acceptance thereof
to have agreed that this Certificate and the coupons appertaining
thereto shall be and have all the qualities and incidents of
negotiable instruments under the law merchant and the Negotiable
Instruments Law of the State of Florida,
The Certificates of this issue maturing in the years
1969 through 1975, inclusive, shall not be redeemable prior to
-14-
their stated dates of maturity. The Certificates of this issue
maturing in the year 1976 and thereafter shall be redeemable prior
to their stated dates of maturity, at the option of the City, in
whole or in: part, from any moneys made available :Ear such purpose
on February 1, 1975 or on any interest payment date thereatter
at the price of par and accrued interest plus the premiums
expressed in percentages of the principal amount at such Certiti- '
cates it redeemed in the years hereinbelow set forth:
Three per centum (3%) if redeemed on February
1, 1975 or thereafter to"and including February .
].s 1980;
^.we per centum (2%) it redeemed on August 14
31 980 or thereafter to and including August
Js, 1985:
(tne per centum (1%) it redeemed on February 1,
:,,986 and thereafter but prior to maturity.
iftotice of such redemption shall be given in the manner
required by the Resolution.
';;his Certificate may be registered as to principal only.'
in accordance with the provisions endorsed hereon,
IN WITNESS ;4IJEREOF, the.City of Cape. Canaveral, Florida,
has issued this Certificate and caused the same to be signed by
its Mayor and attested by the facsimile signature of the City
Clerk and a facsimile of its corporate seal to be imprinted hereon
and has cimsed the interest coupons hereto attached,. to be executed
with the .:acsimile signature of the Mayor, all as of the first
day of Fesuary, 1965.
a CITY OF CAPE CANAVERAL, FLORIDA
(SEAL) By
T. Mayor
4 •
-15-
ATTESTED: The foregoing Certificate and
attached coupons have been
' approved by rhe as to form,
C=.ty clerk language and execution.
City Attorney
FORM OF COUPONS
No.
19the City of
On the first day Of -----'
Cape Canaveral, Florida, will pay to the bearer at the
or at'the
option o' the bolder, at the
,
from the special funds described
in the C=:rtificate to which this coupon is attached, the sum of
Dollars
of the United States of America, upon presentation
in lawfL�l money ,
on, being six months, interest then due.
and sur.;ender of this coup
nue Certificate dated February 1, 1965,
on its fianitary Sewer Rove
No. - FLORIDA
CITY OF CAPE CANAVERAL,
By
mayor
(Insert in coupons maturing after callable date the following:
,-unless the Certificate to which this coupon is attached has been
redemption and.provision duly made for the
duly called for prior
payment thereof.")
VALIDATION CERTIFICATE
This Certificate is one of a series of Certificates
confirmed by decree of the Circuit Court
which were validated and
Of Florida, in and for
of the Ninth Judicial Circuit of the State
Sreve.rd county, rendered on -----------------
Mayor
-16-
pROVISION FOR REGISTRATIO14
This Certificate may be registered in the name of the
holder on the books to be kept by the Clerk of the City, as
Registrar; or such other Registrar as may be hereafter duly
appointed, as to principal only, such registration being noted.
hereon by such Registrar in the registration blank below, after
Which no transfer shall be valid unless made on said books by the
ey duly authorized and similarly noted
registered holder or attorn
in the registration blank below, -but it may be discharged from
registration by being transferred to bearer, after which it shall
be transferable by'delivery, but it may be again registered as.
f this Certificate as ,to principal
before. The registration o
otiablity of the coupons by delivery
shall not restrain the neg.
merely.
Signature of
Date of In Whose Name Re istrar
Registered
Rcqistration ,
SECTION 13.
CERTIFICATES NOT DEBT OF CITY. Neither
or constitute general ob117
the Certificates nor coupons shall be
gations or indebtedness of the City of Cape Canaveral, Florida,
as be within the meaning -of Section 6, Article IX„ of the
a able solely from and
Constitution of Florida, but shall be pay
nd a pledge of the special funds as horein
secured by a lien upon a
provic2d, No holder or holders of any Certificate or of any
coupon appertaining thereto, shall ever have the .right to compel
the exercise of the ad valorem taxing Power of the City or
ta..cati.on in any form of any real property theroin, to pay the
Ccrtiicatcs or the interest thereon, or be entitled to payment
-17-
of such principal and interest from any other funds of the City
except fr(cm the revenues derived from the operation of the system
and the p'.oceeds of the excise taxes in the manner provided hereln.
SECTION lh. pLEDGE OF REVENUES AND EXCISE TAXES. The,
payment of the debt service of the Certificates shall be secured
forthwith equally and ratably by a'pledge of -and a'prior lion on
the revenues of the system and on the proceeds of the excise taxes,
as horeir:after provided. The City doesherebyirrevocably pledge
said fund's to the payment of the principal of and interest on the
Cortificrtes issued pursuant- to this Resolution and to;the payment
into the reserve and sinking funds, at the times provided, of the
sums req ired to secure bo the holders of the Certificates issued
hereundeir the payment of the principal of and interest thereon at
the resp.ictive maturities of the Certificates so bold by them.
'. SECTION 15. RELEASE OF LIEN of FRANcRISE TAX. In the
event t,z annual total of the net revenues from the system and
r,
the proceeds from the utilities tax for each of two consecutive
years shall equal 15o% of the Highest annual debt service require-
ments for the Certificates, as certified by the sworn certificate,
of an indopendeni certified public accountant, then the lien of
the holders of the Certificates on the franchise, tax, and the
pledge hereof to the Certificates, shall thereafter be roleased
and extinguished. The City shall cause a notice to be published
in a financial newspaper or journal published in the City of New
York, 1j(ew York and in -a newspaper of general cir=lation in the
City o Cape Canaveral, Florida, to:the effect that the above
descri=)ed condition has been met and that the lien of the holders
franchise tax and the pledge thereof
of the. Certificates on the
to thc. Certificates is released and extinguished as of the date
-18-
oi: the accountant's certificate.
The sworn certificate of the independent certified
public accountant, above referred to, shall be subject to inspec-
tion at all reasonable times by any certificate holder and the
City shall mail copies of the sworn certificate to any certificate
holder requesting the same.
If, after the lien of the franchise tax has been released
as above provided, the City shall issue additional parity certifi-
cates pursuant to the provisions of section 16 P hereof, the City
may repledge the proceeds of the franchise tax for the -payment of
the Certificates and of the additional parity.certificates;
provided that the proceeds of such franchise tax have not otherwise
bean pledged or encumbered.
SECTION 16. COVENANTS OF THE CITY. So long as any of
the principal of and interest on any of the Certificates shall be
outstanding and unpaid or until there shall have been set apart
in the Sinking Fund, herein established, a sum sufficient to pay
when due the entire principal of the Certificates remaining unpaid
together with interest accrued and to accrue thereon, the City
covenants with the holders of any and all Certificates issued
pursuant to this Resolution as follows, that
A. SPECIAL FUNDS. The entire gross revenues derived
from the operation of the system shall be deposited inro a special
fund, which is hereby established and designated "Sewer System
I2ovenue Fund" (hereinafter sometimes called the ,Rovenue,Fund").
The entire proceeds of the utilities tax shall be deposited into
a special fund, which is hereby established and designated "Utili-
ties Tax Fund" and the entire proceeds of the franchise tax shall
be deposited into a special fund which is hereby established and
-19-
dc::ignated "Franchise Tax Fund". All moneys in the Revenue surd,
the Utilities Tax Fund and the Franchise Tax Fund shall be held
in trust for the purposes provided in this Resolution and shall .
be kept in a bank account, separate and apart from all other funds
Of the City, and used only for the purposes and in the manner
provided in subsection B:of this Section 16.
B. FLW OF FU1MS. All revenues on deposit in the
Revenue Fund shall not latet than the 15th day of each month in
each year, be disposed of only in the following manner and order
of priority:
(1) Revenues shall first be used for deposit into
a fund to be known as the "Operation and Maintenance Fund", which
is hereby established, in amounts necessary, to pay the cost of
Operation and Maintenance, as hereinabove defined, for .the next
ensuing month,
(2) Brom the moneys remaining in the Revenue Fund,
the City shall next deposit into.a separate fund to be held in
trust by the paying agent bank, as trustee, which fund is hereby
established and designated IIS-awer Systan Sinking Fund" (herein-
after, called "Sinking Func•-), such sums, ccnmencing August 15,
1966, as will be sufficient to pay ore -sixth (l/c, of 'all interest
becoming due on the next semi-annual interest pay.. -.ant date, and
commencing not later than February 15, 1968, one -twelfth (1/12)
of all principal maturing on the Certificates on the next maturity
date. All such paymants, as provided above, shall include an
amount.sufficient•to pay the fees and charges. of the paying 'agent.
-20-
(3) Moneys in the Revenue Fund shall next be used
to maintain a Reserve Account in the Sinking Funi, which is hereby
established. The City shall transmit to the trusteo for deposit
into such Reserve Account, from the proceeds derived from the sale
of any or all of the Certificates, the sum of $50,000 and the
balance, if any, of the moneys held in a,speeial escrow account,
after a full and complete discharge and settlement has been made
with Palm Beach investment Co., Inc. Thereafter, but commencing
not later than August 15, 1966, the City shall withdraw from the
Revenue Fund and transmit to the trustee for deposit in the Reserve
Account one twelfth (1/12) of one sixth (1/6) of the difference
between the maximum amount of principal and interest becoming due
on the Certificates and the aggregate amount of the initial depo-
sits made into the Reserve Account, as provided above. No further
payments shall be required to be made into the Reserve Account as
long as there shall remain on deposit therein an amount equal to
the greatest amount of principal and interest becoming due and
payable on the Certificates in any ensuing fiscal year.
Any withdrawals from the Reserve Account shall be.
subsequently restored from the first moneys available in the
Revenue Fund after all required current payments for the Operation
and Maintenance Fund, Sinking Fund and Reserve Account, including
all deficiencies for prior payments, have been made in full.
Moneys in the Reserve Account shall be used only
for the purpose of the payment of maturing principal of or interest
on the Certificates when the other moneys in the Sinking Fund are
insufficient therefor, and for no other purpose,
-21-
The City shall not be required to make any further
payments into the Sinking Fund or into the Reserve Account when
the aggregate amount of moneys in both the Sinking'Fund and the
Reserve Account are at least equal to the aggregate principal
amount of,Certificates then outstanding, plus the amount of interest
than due c�r.thereafter to become due on such Certificates then
outstanding,
(4) The City shall next withdraw from the Revenue
Fund and -ransmit to the trustee for deposit into a separate
account tr., be known as the "Renewal and Replacement Fund", which
fund is hereby established, the monthly sum of ,$250-00. No further
payments uhall be required to be made into such Renewal and Replace-
ment Fund when there shall have been deposited therein, and as long
as there t:hzll remain therein, the sum of $25,000. In the event
the consulting engineers deem it necessary and desirable, the monthly
payments into such Renewal and Replacement rund.shall be increased
in accordance with the written, recommendation of such consulting .
engineers,
The moneys in such Renewal and Replacement Fund
shall be used only for the purpose of paying the cost of extensions,
enlargemet.ts or additions to or the replacement of capital assets
of the system and emergency repairs thereto. Such moneys.on
deposit in such fund shall also be used to implement the Reserve
Account, if necessary, in order to prevent a default in the payment
of the principal of and interest on the Certificates. The moneys .
in such fund shall be withdrawn only upon the authorization of
the City Council and the consulting engineer.
(5) The balance of any revenues in the Revenue
Fund, after the above required current payments have been made
(including all payments required for any additional parity obli-
gations issued pursuant to this Resolution), may be used by the
-22-
city four any la•:Iiul purpoec by the City Council,
(G) Whenever by reason of the insufficiency of
nonoys on deposit in the Revenue Fund the required monthly payments
cannot 1)o promptly made into the Sinking Fund, the ReSGrve.Account
and the Renewal and Replacement Fund, the City shall forthwith
withdr" from the Utilities Tax Fund and transmit to tho trustee
whatovc,r sum shall be necessary to cure such escisting deficit.
If the moneys on deposit in the Utilities Tax fund are insufficient
to curs suchIdeficit, the City shall forthwith withdraw from the:
Franchise Tax Fund and transmit to the trustee whatever sum shall
be necIssary to cure such exieting deficit. 'i£, however, all of
the above required current payments have been made into the Sinking
Fund, ;the Reserve Account and the Renewal and Replacement Fund,
the City may use the balance of moneys on deposit in such special
funds for any lawful purpose.
(7) The Revenue Fund, the operation and maintouance
Fund, the Sinking Fund, the Reserve Account, the Renewal and Re-
placement Fund and all other special funds established, maintained,
and created by this Resolution shall constitute trust funds for
the purposes provided herein for such funds. All such funds shall
be continuously secured in the same manner as state and municipal
deposits are required to be secured by the Laws of the State of
Florida. Moneys in the Sinking Fund, the Reserve,. Account and the
Renewal and Replacement Fund may be invested by the -city in direct
obligations of the United States of America or in time deposits
in banks or trust companies; provided, hrnrover, that such invest-
ments of the moneys in the Sinking Fund shall mature not later
than fifteen (15) days prior to the date on which such moneys will
be noeded to meet the purposes for which such moneys are held.
The r.nvestment of moneys in the Reserve Account and the Renewal
and Replacement Fund shall mature not later than ten (10) years
from rhe date of purchase.
-23-
moneys in the Revenue Fund, the Utilities Tax Fund, the Franchise
Tax Fund and the Operation and !Maintenance Fund shall not be
invested at any time. Any and all income received from such
investments shall be deposited into the Revenue Fund.
C. LEVY OF EXCISE TAXES AND NO REPEAL. The City will
not repeal the ordinances now in effect levying tht-excise taxes
and will not amend or modify, said ordinances in any manner so as
to impair or adversely affect the power and obligations of the
City to levy•and collect such excise taxes or impair or adversely
affect .n any manner the pledge of.such excise taxes :Wade herein`
or the .rights of the holders of the_Certificates. The City shall
be unconditionally and irrevocably obligated, -so long as any of
the Certificates or the interest thereon are outstanding and unpaid,
to levy.and collect such excise taxes, at the maximum rates per-
mitted by law, to the extent necessary to pay the principal of
and interest on said Certificates and to make the other payments
provided for herein. This provision shall not be construed to
prevent reasonable revisions of rates of such excise taxes as long
as the proceeds of such excise taxes to be collected by the City
in each ;tear thereafter will be sufficient to pay the principal
of and ifiterest on the Certificates becoming due and to,make all
Sinking Bund, Reserve and other payments required by this Resolution
in such year.
The City has full.power to irrevocably pledge such excise
taxes to the payment of the principal of and interest on the Certi-
ficates, and the pledging of said excise taxes in the manner pro-
vided he;:ein shall not be.subject to repeal,,, modification, or
impairment by any subsequent ordinance, resolution, or tither pro-.
coedings of the governing body of the City or by any subsequent
act of the Legislature of Florida.
-24-
The plaage of the excise to:es made in this•Resolution
any additional bonds payable on a
shall .e for the benefit of
parity`, with the Certificates from the proceeds of the excise taxes
had
to the same extent as if such additional parity certificates
been originally issued pursuant tom-,this Resolution.
tM�'TIANCE AND OpERATI011. The City will maintain
D.
eof in good .condition and will operate
the system and all parts ther
and economical manner, making suc
the same in an efficient
h expend_
irs and replacements as
tures for equipment and for renewals, repa
nomical operation aid maintenance thereof.
may be proper for the eco
E, ES. The City will enact.a rate
RATES AND CHARG
fix, establish and maintain such rates
ordinance and thereby will
and will collect such fees, rentals or other charges for the
revise'tlie same from
services and facilities of.'the system and
or upon the recommendation of
time to times, whenever necessary,
as will always provide revenues suffi-
the consulting engineers,
cient to pay the operation expanses of the system and, together
se taxes herein pledged, 125;; of the maximum annual debt
with the exci
outstanding Certificates. Such rates,
service requirements on the
fee rentals or other charges shall not be reduced so as to be
insufficient to provide revenues for such purposes.
F. BOOKS AND RECORDS.
Th, City shall also keep books
and records of the net revenues of the system and•b00%s'and, records
tastes, hereinabove described, which
of
the collection of the excise
shall be kept separate and apart from all
such books'and records
of the City and any holder of
other boo}cs, records and accounts
t all reasonable
a Certificate or Certificates shall have the right a
tines to inspect all records, accounts and data of the City relating
thereto.
-25-
The City shall also, at least once a year, within 60
days after the close of the fiscal year, cause the books, records
and accounts relating to the system and to the excise taxes to be
properly audited by a recognized firm of certified public account-
ants and shay.. mail, upon request, and make generally available,
the report ofsuch audits to any holder or holders of Certificates.
Such audits s1` --all contain a complete report of operations of the
t
system, including, but not limited to, a comparison with the cur-
rent municipal budget and with the operations of the previous
years, the balance sheet, a schedule of insurance in ekistence,
a schedule of the application of ail revenues of the system, a
schedule of thi: application of all proceeds of tha excise taxes,
a schedule of ueserves and investments. and a Certificate by the
auditors stating no default on the part of the city of any cove-
nant herein has been disclosed by reason df such audit. A copy
of such annual audit, together with monthly operating statements
of the system, shall regularly�be furnished to William R. Hough
and Company, -St. Petersburg, Florida. Monthly reports are to be re-
ceived by William R. Hough and Company during construction as we.Ll.
G. NO SALE OR MORTGAGE. The City will not sell, mort-
gage, lease or otherwise dispose of property essential to the
proper operation of the system until after all the Certificates,
and the interest'due thereon, shall have been paid'in £ull; except
that any of the property comprising a part of the system which
has become obsolete or has deteriorated so that the same is useless
may be cold or disposed of by the City upon the written approval
of the consulting engineers.
H. INSURAIQCE. For so long as any of the Certificates
are outstanding, the.City will carry adequate ,fire and windstorm
-26-
insurance on all buildings and structures of the works and proper-
tias of the system which are subject to loss through tire or wind-
storm, will carry -adequate public liability insurance, and will
otherwise carry insurance of all kinds and In tha amounts normally
carried in the operation of similar facilities and properties in
Florida. Aeiy such insurance shall be carried for•the benefit of
the holders -of the Certificates. All moneys received for losses
under any os' such insurance; except public liability, are hereby
pledged by the City as security for the Certificates herein
authorized, until and unless such proceeds are used to remedy the
loss or damage for which such proceeds are received, either by
repairing the property damaged or replacing the property destroyed
within ninety (90) days from the receipt of such proceeds.
I_ COtdPLETION OF PROJECT. The City will complete the
construction of the project as provided for in this Resolution
in an economical and efficient -manner with all practicable dis-
patch, and thereafter will maintain said system in good condition.
and continuously operate the `same in an efficient manner and at
a reasonable cost.
J. NO FREE SERVICES. The City will not render or cause
to be rendered any free services of any nature by its system, nor
will any preferential rates be. established for users of the same
class; the City, including, its departments, agenoies.and instru-
mentalities, shall avail itself of the facilities or services
provided by said system,. or any part thereof, and the same rates,
fees or charges applicable to other customersreceiving like
services under similar circumstances shall be charged to the City
and any such.department, agency or instrumentality. Such charges
shall be paid as they accrue, and the City shall transfer from
M&IM
Sufficient sums to pay
such charges' The rovonu"
its general funds
derived from the Opera -
its to be revenues In
so received shall be deposited and accounted for
tl= system, and shall be operation of
tion of derived from such
the same manner as other revenues
the system. S'ERVICzs. upon
failure of any
FAILURE TO PAY FOR t (60) days. the City
K. within six Y
render such user
to pay for services Y Connection of
usoz be shut off the .
off or cause to. the System
Shall shut emit him to receive from
rnish him or P him to the City on
and shall not fu obligation, ovred by
gervice until all oblig This covenant
further 1 have been paid in full.
account of sezvic
es shal causing any system con-
prevent the City frD11� is shut o££,
not, however, p sewer. service
shall If such the user
to be shutoff sooner. restored
noction service shall be'
before such less than
as aforesaid,
the' an amount not
reinstatement fee in ent.
thereof sball Pay a o£ the cut Off and such reinstatement
the cost to the City TION.
The City will diligently
�IFORCEI1E13T OF COLLEC fees and
L. be collected the rates'
use to the
enforce ca
and collect Or facilities Of
for the use of the Iservices Or and
charges ledged; will prosecute a
other ea berein p
for the enforcement dna
system and the excise tax
and proceedings shall
ea7te all steps, actions _ y;cise taxes as
chargeso fees and
uch rate$, the Charter or.
collection of s he full textent permitted by
'
deliVent accurate records with -respect to dna will maintain t:.xeS
law; revenuas and excise
authorized by charges' fees, rates, be applied
thereof:
All such cls in trust t°
ledged shall. as collected, be h
not other%aise.
herein P Or any
as provided in
this Resolution and the Certificates
M, "RDZES: Any holder of this
coupons appertaining thereto, issued under the provisions Of
-28- .
Resolution or any trustee acting for the holders of such Certiii-
cites may eiL•her at law or in equity, by suit, action, mandamus
or other proceedings in any court of competent jurisdiction, pro-
tect and enforce any and all rights, including the right to the
appointment of a receiver, existing under the Laws of the State
of Florida, or granted and contained is this Resolution, and may
enforce and compel the performance of all duties requirca by this
Resolution or by any applicable statutes to be performed by the
City or by any officer thereof, including the dollection of excise
taxes.
Nothing herein, however, shall be construed to grant
to any holder of such Certificates any lien on any real property
of the City.
N. ANNUAL BUDGET. The City shall annually, at least
forty-five (45) days preceding each of its fiscal years, prepare
and adopt by resolution of its governing body, a detailed budget
of the estimated expenditures for operation and maintenance of
the system during such nert succeeding fiscal year. No expendi-
tures for the operation and maintenance of the system shall be
made in any fiscalyear in excess of the amounts provided therefor
in such budget without a written finding -and recommendation by,
the general manager of such system or other duly authorized officer
in charge thereof, which finding and recommendation shall state in
detail tho purpose of and necessity for such increased'expendi-
tures for the operation and maintenance of said system and no such
increased expenditures shall be made until the governing body of
the City shall have approved such findingand recommendation by
a re$olution duly adopted. No such increased expenditures.in
excess of ten per centum (1W.) of the amount provided therefor
in such budget shall in any event be made except upon the further
_29-
certification of the consulting engineers that such increased
expenditures are necessary and essential.to the continuance in
operation of said system. The City shall mail copies of such
annual budgets and all.resolutions_authorizing increased expendi-
tures for operation and maintenance to William R. Hough and
Company, St. Petersburg, Florida and to any holder o'; holders of
Certificates who shall file his or their address with the City
and request in writing that copies of all such budgets and resolu-
tions be furnished him or them and shall make available such
budgets and all resolutions authorizing increased expenditures
for operation and maintenance of the system at all reasonable
times to any holder or holders of Certificates, or anyone acting
for and id behalf of such holder or holders_
O. ISSUANCE OF OTHER OBLIGATIONS. -The City will not
issue any other obligations, except under the conditions and in
the manner provided herein, payable from the revenues of the
system or from e7Ccise taxes,. nor -voluntarily create or cause to
be created any debt, lien, pledge, assignment, encumbrance or
of the. Certificates issued pursuant to this Resolution and Le:c
interest thereon, upon said revenues ore taxes. Any other
obligations issued by the CitY,,in addition'to the Certificates
authorized by this Resolution or additional parity obli,ations
provided for in Section 16 P, payable from said revenues and excise
taxes, shall contain an express statement that such obligations
are junior and subordinate in all respects -to the Certificates
issued pursuant to this Resolution as to lien on and source and
security for payment from said revenues and said excise taxes.
-30-
certification of the consulting engineers that such increased
,spenditures arc necessary and essential to the continuance in
operation of said system. The City shall mail copies of such
annual budgets and all resolutions authorizing increased expendi-
tures for operation and maintenance to V7illiam R. Bough and
company, St. Petersburg, Florida and to any holder or holders of
Certificates who shall file his or their address with the City
and request in writing that copies of all such budgets and resolu-
tions be furnished him or them and shall make .available such
budgets and all resolutions authorizing increased expenditures
for operation and maintenance of the system at all reasonable
times to any holder or holders of Certificates, or anyone acting
for and in beh:•.1£ o'f such holder or holders.
O .ssuANCE or OTB7R OBLIGATIONS.• The City will not
issue any othe abllgations, except under the conditions and in
the manner provided herein, payable from the revenues of the
system or from excise taxes, nor voluntarily create or cause to
be created any debt, lien, pledge, assignment, encumbrance or
other charge 2:aving priority to or being on a parity with the lien
of the Certificates issued pursuant to this Resolution and the
interest thereon, upon said revenues or excise taxes. Any other
obligations issued by the City, in addition to the Certificates
authorized by this Resolution or additional parity obligations
provided for in section 16 P, payable from said revenues and excise
taxes, shall contain an express statement that such obligations
are junior and subordinate in all respects to the Certificates
issued pursuant to this Resolution as to lien on and source and
security for payment from said revenues and said excise taxes.
-30-
P. ADDITIONAL PARITY CERTIFICATES. The City rosorver,
t'r.o right to issue additional cartificates payable from and
cocurod by a pledge of the not revenues of the system and the
proceeds of the excise taxes on a parity with the Certificates
--ubjoct to the following conditions and provisions:
1. (a) Such additional parity certificates shall not
exceed the principal sura of $250,000 and shall be issued solely.
to provide funds to complete the project hereinabove provided.
(b) There shall first have been obtained and filed
with the City Clerk a certificate of an independent certified
public accountant of suitable experience and responsibility stating:,
(i) that the books and records of the City relating to "the system
and to the C.'alection.and receipt of the, utilities tar have been
audited by -him; (ii) setting forth the annual net revenues of.
the system ane the proceeds of the excise taxes for each of the
two fiscal years immediately preceding the date,of the issuance
of the proposei., parity certificates with respect to which such
certificate is -made, and (iii) that the annual amount of the sum
Of such .net revenues of the system and -the proceeds of the excise
taxes for each o!i the two immediately preceding fiscal years shall
equal not lens tan 125% of the maximum combined annual principal
and interest rcg1tircments which will become due in any year there-
after, on all ouustanding Certificates and all additional parity
certificates, if any,' then outstanding'and on the additional parity
certificates, with respect to which such certificate is made; or
2, (a) Such.additional parity bonds shall be -issued
solely for the )Urpose of paying the cost of the acquisition and
construction of additions, extensions,.improvaments and repairs
to the system,
-31
(b) There shall first have been obtained and filed
with the City Clerk a certificate of an independent certified
public accountant of suitable experience and responsibility stating:
(i) that the books and records of the City relating to the system
and to the collection and receipt of the excise taxes have been
audited by him; (ii) setting forth the annual net revenues of
the system and the proceeds of the excise taxes for each of the
two fiscal years immediately preoeding the date of the issuance
of the proposed parity certificates with respect to urbich such
certificate is made; and (iii) that the annual amount of the sum
of such nut revenues of the system and the proceeds of the excise
taxes for each of the two immediately preceding fiscal years shall
equal not less than 150% of the maximum combined annual principal
and interest requirements which will become due in any year there-
after, on all outstanding Certificates and all additional parity
certificates, if any, then outstanding and on the additional parity
certificates with respect to which such certificate is.made; and
3. The parity certificates to be issued shall mature
on February 1 of each year, commencing not sooner than one year
after completion of the project to be financed by the issuance of
such certificates, and the interest thereon shall be payable semi-
annually on February 1 and August l of each year; and
4, The City shall not be in default in complying with
any of the covenants and obligations assumed under this Resolution
and all payments required by this Resolution to be made into the
funds and accounts, established hereunder, shall have been made
to the full extent required; and
S. Prior to the issuance of any additional parity certi-
ficates hereunder, the City shall at least six months prior to
the authorization thereof notify William R. Hough and Company,
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St. Petersburg, Florida of its intention in this regard; and
6. The resolution authorizing the issuance of such
additional parity certificates shall provide that the interest
payable therein during the period of construction of the project
to be financed by the issuance of such certificates shall be
payable out of a portion of the proceeds derived from the sale
thereof;' and
7 In determining the amount of net revenues for the
purposes of the above paragraphs, the Consulting Engineers nay
adjust riot revenues by adding thereto the following:
(a) The net revenues (computed for such facility
on the same basis as net revenues are computed for the system)
of any sewer system which the City night have constructed or,
acquired previous to the issuance of such additional parity certi-
ficates or which the City shall be acquiring from proceeds of such
additional parity certificates, and which, in the case of the
acquisition thereof, has been operating for a part of the same
base period or periods.
(b) In the event a change has been made..in the
rate schedules for services from the system, prior to the issuance
of the proposed additional parity certificates for a part.of the
same base period or periods and such change has resulted in an
increase in net revenues, seventy-five per cent (75%) of an estimate
made by such Consulting Engineers of such additional net revenues
for the same base period or periods.
(c) Seventy-five per cent (75%) of the average
annual net revenues which the Consulting Engineers estimate will
be received solely from the additions, extensions,and improvements
to be financed with the proceeds of such additional parity bonds
in the three complete years next succeeding the estimated date of
completion of such a,-ditions, extensions and improvements to the
system. -33-
Q. ,7.\:... GR_ cGa::.,..SI0::5_ _ :e' City will, Wit..ic sixty
AGO) days after completion of the project, to full extent per-
:.,Lttad by law, require all lands, buildings and structures within
thS City,' withi'h 150 feet of such system or any Part tharoof, or
which can use 4t:.9 facilities and services of such syste=, to
connect with and use such facilities and services, to pay a con-
ncctiop charge in the amount of $ and to cease all
other means and ;method for the collection, purificatior4, - -
_int and disposz,l of sewerage and waste matter. The City bhall
cakes action aganst any one violating or rafusing:to'co-ply with
the requiromentc of tris section to the full extent permitted
under the Charta= of the City.
R. SL'PBRII TENDEN Or PUBLIC t?O'RiCS. The Superintendent
of Public Works, as required by .the City Charter, shall bia respon-
siblo for the operation and maintenance of the system_, The city
will require al! a=ployees and all persons who may 'nave .?0ssGssiG
of money derived frees the operation of the system to be covered
by a fidelity :,und writtaa by a responsible indemnity company in
reasonable amounts adequate to protect the City from loss.'
S. NO CO-V?ET=G S:STE•i. To the fu11'extent po=-fitted
by law, the Ci_y will not grant, cause, consent to, or allow the
granting of any franchise or permit to any person, fir:.,, corpora-
tion or body, agency or instrumentality whatsoever, =or the 'turn-
ishing of sower service to or within the City.
T. CO1 SJ-a.TI.\G E. GI:Tr RS. The City shall employ
qualified consulting engineers, of national reputation, in an -
advisory capacity to inspect the system annually avid make reports
...d recommendations with respect thereto, with respect to any
-roposcc chan_Qs in.the schedule of rates, leas and charges and
ccncernirg the operation, maintenance, replacements, property
Z,6itions and inprovcr..onts thereto- Upon request of any hoide=
c: Cort_ficatns, a copy of each such an,..:al report shall be mail....
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p03tage prepaid to such holder, a copy thereof shall remain on
rile with the City Clerk for public inspection and a copy.shall
be mailed to William R Hough and Company, St. Petersburg, Florida.
SECTION 17. APPLICATION OF,CERTIFICATES PROCEEDS.
From the moneys received from the sale of any or all of the Certi-
ficates originally authorized and issued pursuant to this Resolution
the following amounts shall be first deducted and deposited as
follows:
A. An amount equal to the interest.accrued or to accrue
on said Certificates to August 1, 1966 shall be deposited in the
Sinking Fund and used to pay interest on the Certificates.
8. The sum of $50,000 shalt be transmitted to tho.trustee
for deposit in the Reserve Account.
C. A sum not exceeding:$42,000 shall be held in a
separate escrow account pending the settlement and compromise of
any amounts duo and owing to.Palm Beach Investments Comoany,.Inc.
After full and complete settlement of the amounts due and owing
to Palm Beach Investments Company„ Inc., the balances remaining
in such escrow account shall be transmitted to the trustee for
deposit in the Reserve Account.
D. The remaining moneys derived from the sale of such
-Certificates shall be deposited by the city in a special bank
account to be known as the "Sewer System Construction Fund", (here-
inafter referred to as the "Construction Fund"), which is hereby
created. Such fund shall be kept separate and apart Prom all
other accounts of the City and shall be withdrawn, used and applied
by•the City•solely to the payment of the cost of acquisition,
construction and completion of the system of the City, purposes
incidental thereto, and for no other purpose whatsoever. If for
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anyreasor, such proceeds, or -any part thereof, are not necessary
for, or a;`e not applied to, such purposes, then such unapplied
proceeds ohall be deposited by the City in the Reserve Accounto
shall be and constitute a trust fund for suc
Ail such proceeds h
perposes and there is hereby created a lien upon such moneys, until
so applied, in favor of the holders Of the Certificates.
Any funds on deposit in the Construction Fund which in
ncil acting upon the recommendation
the opinion of the City COU
o -r the.consulting Engineer are not immediately necessary for .
be invested indirect
expenditure, as hereinabove provided, may
w li ations of the United States of America maturing as recommended
by consulting -Engineer.
All such securities shall be held
h•7 the depository bank and all income derived therefrom shall be
deposited in the Sinking Fund herein provided for.
Immediately prior to the delivery of the Certificates
t.o the purchasers thereof,.the City shall enter into a written
,greement with the depository bank for said Construction Fund,
•,.bich said agreement shall provide that all expenditures or dis-
aursesnents from said Construction Fund shall be made only after
uch expenditures or disbursements shall have been approved in
wr:_ting by the consulting Engineer and the City Treasurer. The
date of completion of the project shall be determined by the
Consulting Engineer who will certify such facts in writing to the
City Council.
SECTION 18. INITIAL SCHEDULE OF RATES. The initial
schedule of rates, fees and other charges to be imposed for the
services or facilities furnished by the system,:which initial
iv e immediately upon the date of comple-
schedule shall be effecttion of the system, but which may be subject to such rdvision
cra tir„�: tot-i.:u_ hereafter as may be necessary to carry out t:ie
ruquiremcnts of this Resolution shall be as follows:
Customer Classification - monthly Charge
Residential
Single Family (single bath) $3.75
Additional Baths .50
Multiple Family & Apartments ='class 1
(having more than 1 bedroom per "unit)
First Unit 3.75
Additional Units 2.75
MultipleFamily & Apartments - Class.11
(having 1 bedroom or less per unit)
First Unit_ 3,75
Additional Units 2.25
Motels .& Trailer Parks
First Unit or Space 3.75
Additional. Units or Spaces 1.75
Dormitories 100% of Water Bill
*/minimum of $3.75
Iublic Buildings 6.25
L'-hurches 3.75
Commercial & Industrial 100% of Water. Bill
with minimum of
- $3.75
Such' rates, fees and other charges for'the use of the
services or facilities of the system shall be included in monthly
ecatements rendered to the users of the system. In the event the
zmount due for such use isnot paid in full by;the.15th day of
the month following that for which a statement has been rendered,
then an mount equal to five per centum (5%) of such monthly amount
flue shall be added,thereto as a late charge,
Nothing herein contained,:shall be construed to prevent
or prohibit the City from enforcing or collect ing,the 'rates, 'fees
rnd other charges for the use of the services and facilities of
i:he system in the event that. such action is necessary or desirable_
SECTION 1°, MODIFICATION AND AMENDMENT. No material
iodification or amendment, of this Resolution or of any ,resolution
s�endatocy hereof or supplemental hereto, may be made without the
consent in writing of the holders of two-thirds or more in principal
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amount of the Certificates then outstanding, provided, however,
that no modification or amendment.shall permit a change in the
maturity of such Certificates or a reduction in the maturity of
such Certificates or a'reduction in the rate of interest thereon,
or in the amount of the principal.obligation or affecting the
unconditional promise of the City to levy and collect such rates,
fees and charges, and Baia excise taxes, as herein provided, or
to pay the principal of and interest on the Certificates as the
same shall become due from the revenues of the system.and said
excite taxes, or reduce suchpercentage of holders of such Certifi-
cate!„ required above, for such modifications or amendments, without
the consent of the holders of all of such Certificates.
SECTION 20. SEVERABILITY.OF INVALID PROVISIONS. If
any one or more of the covenants, agreements,or provisions of this
Resolution should be held contrary to any express'provision of
law or contrary to the policy of express law, though not expressly
prohibited, or against public policy, or shall for any reason
whatsoever be held invalid, then such covenants, agreements or
provisions shall be null and void and shall be deemed separate
from,the remaining covenants, agreements or provisions, and in
no a:ifect the validity of all the other provisions of this Resolu-
tion or of the Certificates or coupons issued thereunder.
SECTION 21. VALIDATION AUTHORIZED, T. David Burns,
Esquire, City Attorney; be and he is hereby authorized and directed
to institute appropriate proceedings in the Circuit Court of the
_Ninth Judicial Circuit of Florida, in and for Brevard County,
Florida, fo'r the validation of said Certificates and the proper
officers of the City are hereby authorized to verify on behalf
of the City any pleadings in such proceedings,
T
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SECTION 22- PUBLIC HEARING- A public nearing relating
ty the initial schedule of rates, fees and charges to be made for
t;•e use of the services and facilities of the system shall be held
Anl:e::
a the City Hall./on Fcbruar5 , 1965 at 7:'.O o'clock,
F -N The City clerk is hereby, directed tQ publish a notice one
t'me in the Cocoa Tribune a newspaper
o: general circulation in the City published in Brevard County,
F.�rJ4ia (there being no newspaper published in the City). at least
tu.icgys prior to the date of the hearing as fixed therein, such
no ise shall be in substantially the following form;
NOTICE TO ALL•INTERESTED PROSPECTIVE USERS
j OF THE SERVICES AND FACILITIES OF THE SANITARY
I SEWER SYSTEM OF THE CITY OF CAPE CANAVERAL,
FLORIDA.
ii NOTICE IS HEREBY GIVEN to all prospective users for the
1
se'Fv1:es and facilities of the sanitary sewer system of Cape .
Caaaazral, Florida, all owners, tenants, and occupants of property
to b0 served thereby and all other persons interested therein,
tnatla public hearing relating to the initial schedule of rates,
fe :land charges to be made for the use of sucb.services and
fz.ciiliities of the sanitary sewer system will be held at 7:?O
r' -tick P ;24- on the 5th day of February 1965 at the
re'Jvaar.meeting place of the Council in the City Hall in Cape
Can veral, Florida at which time and place any interested persons
I.
willl:be heard concerning the proposed initial rates,. £ees and
cha,jges for the use of the services and facilities of the sanitary
sown: system as set forth below:
S ,
i
j -39-
Customer Classification :dontnly Char=_ '
Residential
Single Family (single bath) $3,75
Additional Baths .5U
Multiple Family '& Apartments* Class 1
(having more than l bedroom per unit)'
First Unit 3.7Y
Additional Units 2.75
Multipla`Family & Apartrients - Class 11
(having l bedroom or less per unit
First Unit 3.75
j Additional Units :2,25
Motels '& Trailer;Parks
i First Unit or Space;.
Additional Units or Spaces'- 1.75
Dormitories
First Unit 3.75
Additional Units 1.25
Public Buildings 6:25
Churches
Commercial &'Industrial 10095 of -W to Hill
wiEh minimum of
$3.75;
��f Dontla J. AnQersen
City Clerk
A copy of,tho proposed schedule of such -initial rates,
fads and charges is presently on file in the office of the City.
Clark and shall be available for inspection by all interested
parties,
AND RA`PG,SCHBllUL:6
SECTION 23. REPEAL OF CONFLICTING RESOLUTION.�/. All
resolutions or parts of resolutions in conElicts`herowith are hereby
repealed, including Resolution No.64-2B, adopted by the City
Council
Coz isalan on May 13,; 1964, arid that pro osed sciiedulc o:
l:.l,iul :ateo, reea ane c arges adopted on June 3, 1W is repealed.
SECTION 24,' EFFECTIVE' DATE. This Resolution shall
become effective upon the final adoption thereof aster the holding
of the public hearingprovided for 3n.Section 22.hereof.
t _
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J ,
SECTION 25. SUBSTITUTION OF FRAr1CHISE TAX. The City
}:ex�b covenants with the holders of the Certificates that, in
tree �t,t it shall acquire the electric Trower and distribution
facili'tSea of the Florida Power and Light Gompany,withln the City,
Purr;uant to the provisions of ,the ordinance enacted August 28, 1962
or otherwise, or in ttie event it shall acquire, construct or. operate
an h c ric power and distribution's ystem within -the City, In
_plaoe
ei
^;.ectrlc pourer and distributibn system of
the Florida power
and Lrga Company, and the franchise taxes are not available to the
Citi io i:ake the payments therefrom required pursuant to the prov
lsic 3 or'this'Ardinarice, the City will make payment from the net
revs urs :first.available to it froii the operation of any Such electric
�+
Pone an,`distribution system so owned, acquired, constructed or
Operated i'y it of the amounts required to be paid from the franchise
taYet: purt;uant to the provisions Of this Ordinance.
SECTION _26, RENEWAL OF ELECTRIC FRANCHISE. The City,
hereby 0o:2nants with the holders of the Certificates .that it will
not a:pp .anent or renew the electric franchise agreement with the
Floriza Potter and Light Company except and unless the rate of the
£rano i.< vax and the terms and conditions of such agreement are
a3 fa c Abe to :the City as the same are.prov. 1in the present
a8reen,ettt. , ' ' • , .
CDOPTED by the .City Couricll of the City of Cape Canaveral,
I'lorida.•or second and finch reading as amended On the'5th day of -
February, 1965,
51 t rtayo
ATTEST:,:.
4
First F�19irlg and Approval January 25, 1965
Public ta�tng, Second and Final Readi
Posted e, -6th day of January, 1965.ngFebruary 5, 1965,
1PPFi0TES, A. TO FORM:
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