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HomeMy WebLinkAboutResolution No. 1966-60 MICROFILMED _ _.._ 44o,BQ RESOLUTION NO. 66-60 A RESOLUTION PROVIDING FOR THE ISSUANCE OF 250, 000 SANITARY SEWER REVENUE CERTIFICATES, SERIES B; PROVIDING 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, THE PROCEEDS OF THE ELECTRIC FRANCHISE TAX, AND THE PROCEEDS OF THE OCCUPATIONAL LICENSE TAX: 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 Resolution 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 main- tain a sanitary sewerage system (hereinafter sometimes re- ferred 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 of 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 suchproject be constructed. The plans and specifications for such improvements as prepared by Briley, Wild and Associates, Consulting Engineers of the City have been adopted and approved by the City Council and are presently on file in the office of the City Clerk. C. The City, pursuant to non-emergency Ordinance No. 64-10 enacted April 28, 1964, and Section 167. 431, Florida Statutes, has levied a tax on every purchase of electricity, metered or bottled gas (natural, liquified petroleum gas or manufactured), water service and telephone and telegraph 0 .- ._.MICROFILMED • 4-10-80 service within the corporate limits of the City, (which taxes are sometimes hereinafter referred to as "utilities tax" ) . D. The City, pursuant to the provisions of Ordinance No. 5-62, • enacted August 28, 1962, 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 the City. In return for such privilege the Florida Power and Light Company has agreed to pay a con- tinuing franchise tax to the City (such tax being hereinafter referred to as the "franchise tax" ) . E. The. City, pursuant to the provisions of Ordinance No. 3-62, enacted August 2, 1962, as amended by Ordinance No. 3-62-A, enacted August `26, 1964.,, has levied an . occupational license tax on businesses, professions and occupations carried on within the corporate limits of the City (hereinafter referred to as the "'occupational license` tax" ) . F. The City has, by virtue of Resolution No. 65-7. adopted on February 5, 1965, authorized the construction of the project and provided for the issuance of $1, 350, 000 . Sanitary Sewer Revenue Certificates to finance the cost thereof. ....Sudh resolution also provides that the $1, 350, 000 Sanitary Sewer Revenue Certificates shall be. payable from the net revenues derived from the operation of the system and from the proceeds of the utilities tax and the franchise tax. Such resolution and the certificates issued pursuant thereto are hereafter referred to as the "Prior Resolution" and the "Prior, Lien Certificates", respectively. 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 Prior Lien Certificate's authorized by the Prior Resolution and the balance shall be provided by. the City from other available sources, or if necessary, from the 2 . MICROFILMED • 4.10-80 sale of the Certificates herein authorized. Such cost, in addition to the specific items contained in the plans and specifications 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 therefrom 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 the Prior Resolution, the construction of the project and the 'placing of the same in operation. H. The City has determined that it is in. the best • interests of the inhabitants of the City _t"o provide for funds in the amount of $250'000 for further financing" f. the project in the event that the proceeds' derived frome thsale of the Prior Lien Certificates and the funds to be provided by the City from other available sources are not sufficient to com- plete the construction and acquisition of the project all in compliance with and under the terms of the Prior Resolution. I. The estimated annual net 'revenues to be hereafter derived from the operation of the system, the proceeds of the utilities tax, the proceeds of the franchise tax and the proceeds of the occupational license tax (hereinafter collectively referred to as "excise taxes" ) will be sufficient to pay the principal of and interest on the Certificates, herein authorized, and on the Prior Lien Certificates as the same become due, all sinking fund, reserve and other payments herein required. The lien held by the Certificates issued pursuant to this resolution on the net revenues of the system and the proceeds of the franchise tax and the utilities tax shall be junior and subordinate to the lien held by the Prior Lien Certificates, in the manner provided in this Resolution. • 3. r O MICROFILMED 4-10.80 J. The principal of and interest on the Certificates to be issued pursuant 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 in the manner provided herein. The City shall not be authorized to levy ad valorem taxes on any real property thereinto pay the principal of and interest on the Certificates, herein authorized, or to makeany of the reserve, sinking fund or other payments provided for herein. 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 Resolutionshall have the following meanings, unless the text otherwise expressly requires : A. "Certificates" shall mean the $250, 000 Sanitary Sewer Revenue Certificates, Series B originally authorized to be issued pursuant to this Resolution, and the interest coupons appertaining thereto. 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 Maintenance" 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 4. • O MIC1 OFILMED 4-10-80 with sound accounting practices, and shall include without limiting the generality of the foregoing, insurance premiums, administrative expenses of the City relating solely to the system, labor, cost of materials and supplies used for current operations and charges for the accumulation 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 de- preciation 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 .0 after deducting only operating expenses 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), water service and telephone 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 August 28, 1962, 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. "Occupational License Tax" shall mean the moneys received annually by the City by virtues of Ordinance No. 3-62 enacted by the City on August 2, 1962 as amended on August 26 1964, levying and collecting a tax on professions, businesses, and occupations carried on within the corporate limits of the City. 5. MICROFILMED 4-10.80 I. "Excise Taxes" shall mean collectively, the utilities tax, the franchise tax, and the occupational license tax. J. "Fiscal Year" shall mean the period commencing on October 1 of each year and continuing to and including the succeeding September 30. K. Words importing singular number shall include the plural number in each case and vice versa, and words importing persons shall include firms and corporations . SECTION 4. RESOLUTION TO CONSTITUTE CONTRACT. In consideration 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 contract between the City and such holders . The covenants and agreements 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 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. SECTION 5. AUTHORIZATION OF CERTIFICATES. Subject and pursuant to the provisions of this Resolution, certificates of the City to be known as "Sanitary Sewer Revenue Certificates, Series B" , herein sometimes referred to as "Certificates" , are hereby authorized to be issued in the aggregate principal amount of Two Hundred and Fifty Thousand ( $250, 000) Dollars. 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 each; shall bear interest at not exceeding the legal rate; such interest to be payable semi-annually February 1 and August 1 of each year, and shall mature ,. serially in numerical order, lowest numbers first, on February 1 in the years and amounts as follows : 6. 0A3 .. MICROFILMED 4-10-80 YEAR AMOUNT 1995 $90, 000 1996 90, 000 1997 70, 000 Such Certificates shall be issued in coupon form; shall be payable with respect to both principal and interest in lawful money of the United States of America at such bank or banks to be determined by the City, subject to the approval of the original purchasers of the Certificates, prior to the delivery thereof; and shall bear interest from their date, payable in accordance with and upon surrender of the appurtenant interest coupons as they severally mature. SECTION 7. EXECUTION OF CERTIFICATES AND COUPONS. The Certificates shall be executed in the name of the City by the Mayor and attested by the City Clerk, and its corporate seal or a facsimile thereof shall be affixed thereto or reproduced thereon. The facsimile signatures of'. the .Mayor or the City Clerk may be imprinted or reproduced on the Certificates, provided that at least one signature required to be placed thereon shall be manually subscribed. In the case any one or more of the officers who shall have signed or sealed any of the Certificates shall cease to be such officer of the City before the Certificates so signed and sealed shall have been actually sold and delivered, such Certificates may neverthe less be sold and delivered as herein provided and may be issued as if the person who signed or sealed such Certificates had not ceased to hold such office. Any Certificate may be signed and sealed on behalf of the City by such person 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 Certificates such person may not have held such office or may not have been so authorized. 7. 0 -0... MICROFILMED • 4-10.80 The coupons attached to the Certificates shall be authenticated with the facsimile signature of any present or guture Mayor of said City, and the validation Certificate on said Certificates shall be executed with the facsimile signature of the Mayor. The City may adopt and use for such purposes the facsimile signature of any person who shall have been such Mayor at any time on or after the date of the Certificates, notwith- standing that he may have ceased to be such officer at the time such Certificates shall be actually sold and delivered. SECTION 8. NEGOTIABILITY AND REGISTRATION. The Certificates 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 appertaining 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 in- contestable 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 office of the City Clerk, such registration to be noted on the back of said Certificates in the space 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 •opt.ion of the holder, the 8. 0 r .. MICROFILMED 440.80 • Certificates may be thereafter again from time to time 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, 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 substitution for such mutilated Certificate, upon surrender and cancellation of such mutilated Certificate and attached coupons, if any, or in lieu 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 regulations 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 Certificates 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 Certificate 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 contractual obligations on the part of the City whether or not the lost, stolen or destroyed Certificates or coupons be 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, as hereinafter pledged, to the same extent as all other Certificates and coupons issued hereunder. 9. O MICROFILMED 4-10-80 SECTION 10. REDEMPTION PROVISIONS. The' Certificates of this issue 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 interest payment date thereafter at the price of par and accrued interest plus the premiums expressed in percentages of the principal amount of such Certificates if redeemed in the years hereinbelow set forth: Three per centum (3%) if 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 1, 1986 and thereafter but prior to maturity. The Certificates, if less than all, shall be redeemable in the inverse order of their maturities and by lot within maturities. 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'. SECTION 12. FORM OF CERTIFICATES AND COUPONS. The text of the Certificates, the interest coupons to be attached thereto and thevalidation certificate to be endorsed thereon 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 • �: . 0- - MICROFILMED • 4-10-80 any subsequent resolution adopted prior to the issuance thereof: No. $5, 000 UNITED STATES OF AMERICA STATE OF FLORIDA CITY OF CAPE CANAVERAL SANITARY SEWER REVENUE CERTIFICATE, SERIES B KNOW ALL MEN BY TKESE PRESENTS, that the City of Cape Canaveral in Brevard County, a municipal corporation of the State of Florida, (hereinafter referred to as "City" ), for value 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 special funds hereinafter mentioned, the principal sum of FIVE THOUSAND DOLLARS and to pay solely from such special funds, interest on such principal sum from the date hereof at the rate of per centum ( %) per annum, until the payment of such principal sum, 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 annexed coupons as they severally mature. Both principal of and interest on this Certificate are payable inlawful money' of the United State of America at the or, at the option of the holder at the This Certificate is one of an authorized issue of Certificates in the aggregate principal amount of $250, 000 of like date, tenor ..:and: effect, 'except as to number, 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 (hereinater referred ,to as the "system" ), under the authority of and in full compliance with the Constitution and Statutes of the State of Florida, particularly Chapter 184, Florida Statutes, and Resolution No. , duly adopted on , (hereinafter referred to as the "Resolution" ), and is subject to all the terms and conditions of such Resolution. 11/ MICROFILMED • 4-10-80 r.: This Certificate and the coupons appertaining thereto are payable solely from and secured by a lien upon and pledge of the net revenues derived from the operation of the system; from a lien on and a pledge of the proceeds derived by the City from a tax levied pursuant to Ordinance No. 64. 10 upon every purchase of electricity, metered or bottled gas (natural, liquified petroleum gas or manufactured), water service and telephone and telegraph service within the corporate limits of the City, under the authority of Section 167. 431, Florida Statutes, (hereinafter referred to as "utilities tax" ), from a lien on and a pledge of 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, (hereinafter referred to as "franchise tax" ) ; and from a prior lien on and a pledge, of the moneys received annually by the City pursuant to the provisions of Ordinance No. 3-62, providing for a tax on all professions, businesses, and occupations carried on within the corporate limits of the City, (hereinafter referred to as "occupational license tax" ) . 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 12. • 0 r- MICROFILMED - 4.10-80 revenues derived from the operation of such system and the proceeds of such utilities tax, franchise tax, and occupational license tax (hereinafter collectively referred to as "excise taxes" ) all in the manner provided in the Resolution. The lien en and pledge of the net revenues of the system, of the proceeds of. the utilities tax and of the proceeds of the franchise tax are junior and subordinate in all respects to the prior lienthereon of the Sanitary Sewer Revenue Certificates of the City issued in the original amount of 1, 350, 000. The City in such Resolution has covenanted and agreed with the holders of the Certificates of this issue to fix, establish 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 amount of principal of and interest on the Certificates of this issue becoming due in any succeeding year and all reserves or other payments provided for in said Resolution, and all other Prior Lien Obligations and that such rates, fees or other charges shall not be reduced so as to be insufficient to provde 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, conditions and things 'required to exist, to happen and to be performed precedent to and in the issuance of this Certificate; ru exist, have happened and have been performed in regular and due form and time as required by the Statutes and Constitution of the State of Florida applicable thereto, and that the issuance of this Certificate and of the issue of Certificates of which 13. . 0 -0 MICROFILMED 4-10-SO • this Certificate is one, does not violate any constitutional, statutory or charter limitation. This Certificate and the coupons appertaining thereto are, and have all the qualities and incidents of a negotiable instrument 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 appertaining 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 shall be , redeemable `priorr 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, •P1975 or on any interest payment date thereafter at the price of par and accrued interest plus the premiums expressed in percentages of the principal amount of such Certificates if redeemed in the years hereinbelow set forth: Three per centum (3%) if 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 1, 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 WHEREOF, 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 caused the interest coupons hereto attached, l4. O ; - 0 MICROFILMED 4-10-80 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 The foregoing Certificate and ATTESTED: attached coupons have been approved by me as to form, language and execution. City Clerk 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 the 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 Sewer Revenue Certificates, Series B, 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 Certificates which were validated and confirmed by decree of the Circuit Court of the Ninth Judicial Circuit of the State of Florida, in and for Brevard County, rendered on Mayor 15. . 0 0 MICROFILMED _.�.., �.._... 4O-80 PROVISION. FOR REGISTRATION 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 registered holder or attorney duly authorized and similarly noted 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 itmay be again registered as before. The registration of this Certificate as to principal shall not restrain the negotiability of the coupons by delivery merely. Date In Whose Name Signature of Registration Registered., - Registrar • • • SECTION 13. CERTIFICATES NOT DF,KT OF CITY. Neither the Certificates nor coupons shall be or constitute general obligations or indebtedness of the City of Cape Canaveral, Florida, as bonds within the meaning of Section 6, Article IX, of the Constitution of Florida, but shall be payable solely from and secured by alien upon and a pledge of the special funds as herein provided. 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 taxation in any form of any real property therein, to pay the Certificates or the interest thereon, or be entitled to payment of such principal and interest from any other funds of the City except from the revenues derived from 16. 0 • Q MICROFILMED 4-10-80 the operation of the system and the proceeds of the excise taxes in themannerprovided 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 lien on the revenues of the, system and on the proceeds of the excise taxes, as herein 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. sinking 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. The lien held by the Certificates on the net revenues of the system and on the utilities tax and the franchise tax shall be junior and subordinate to the lien held by the Prior Lien Certificates, in accordance with the terms of this Resolution. SECTION 15. RELEASE OF LIEN OF, FRANCHISE TAX. In the event the annual total of the net revenues from the system and the proceeds from the utilities tax foreach of two consecutive years shall equal 150% ofthe highest annual debt service require- ments for the Certificates 'and the Prior Lien Certificates as certified by the sworn certificate of an independent certified public Accountant, then the _:liven of the holders of the Certificates on the franchise tax, and the pledge thereof to the Certificates, shall thereafter be released and extinguished. The City shall cause a notice to be published 'in a financial newspaper or journal published in the'•City of New York,-;;New:York and in a newspaper of general circulation in the City of Cape Canaveral, Florida, 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 of the accountant' s Certificate. 17. -- MICROFILMED 4-10-8p The sworn certificate of the independent certified public accountant, above referred to, shall be subject to inspection 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 certificates pursuant to the provisions of Section 16 P of the Prior Resolution, 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 been 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 toether with interest accrued and to accrue thereon, the City covenantswith the; holders of any and all Certificates issued pursuant to this Re'''solution as follows, that : A. SPECIAL FUNDS. The entire .gross revenues derived from the operation of the system shall be deposited into a special fund, created and established by the. Prior Resolution and designated "Sewer System Revenue Fund" (hereinafter some- times called the "Revenue Fund" ) . The entire proceeds of the utilities tax shall be deposited into a special fund, created and established by the Prior Resolution and designated "Utilities Tax Fund" and the entire proceeds of the franchise tax shall be deposited into a special fund created and established by the Prior Resolution and designated "Franchise Tax Fund". The entire proceeds of the occupational license tax received annually by the City shall be deposited into a special fund 18. MICROFILMED 4-10-80 which is hereby established and ,designated "Occupational License Tax Fund" . All moneys in the Revenue Fund, The Utilities Tax Fund, the Franchise Tax Fund, and the Occupational License 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 this Resolution and in the Prior Resolution. B. FLOW OF FUNDS. All revenues remaining on deposit in the Revenue Fund after making the payments provided for in the Prior Resolution 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) From the moneys remaining in the Revenue Fund, the City shall deposit into a separate fund to be held in trust by the paying agent bank, as trustee, which fund is hereby established and designated "Series B Sinking Fund" (hereinafter called "Sinking Fund" ), such Sums, commencing August 15, 1966, as will be sufficient to pay one-sixth (1/6) of all interest becoming due on the next semi-annual interest payment date, and commencing not later than February 15, 1994, one-twelfth (1/12) of all principal maturing on the Certificates on the next maturity date. All such payments, as provided above, shall include an amount sufficient to pay the fees and charges of the paying agent . (2) Moneys in the Revenue Fund shall next be used to maintain a Reserve Account in the Sinking Fund, which is hereby established. 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 an amount equal to one-twelfth (1/12) of one-sixth (1/6) of the maximum amount of interest becoming due on the Certificates in any ensuing fiscal year until there is on deposit therein an amount equal equal to the maximum amount of interest becoming due on the 19. 0 , . MICROFILMED 4-10-80 Certificates in any ensuing fiscal year. In the event that the Certificates issued pursuant to this Resolution do not subsequently become payable on a parity with the Prior Lien Certificates in accofdance with Subsection 16 (0) of this Resolution, the City shall, commencing February 15, 1989, withdraw from the Revenue Fund and transmit to the trustee for deposit in the Reserve Account an amount equal to one-twelfth (1/12) of one-sixth (1/6) of the maximum amount of principal becoming due on the Certificates in any ensuing fiscal year. No further payments shall be required to be made into the Reserve Account as long as there shall remain on deposit therein prior to February 15, 1989, an amount equal to the greatest amount of interest becoming due on the Certificates in any one fiscal year, and subsequent to February 15, 1989, 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 availabe in the Revenue Fund after all required current payments for the Sinking Fund and Reserve Account, including all deficiencies for prior payments, have been made in Mull. 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. The City shall not' be required to makes 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 then due or thereafter to become due on such Certificates then outstanding. (3) Commencing not later than February 15, 1994, the City shall next withdraw from the Revenue Fund and transmit to the trustee for deposit into a separate account created and. established by the Prior Resolution and known as the "Renewal 20. 0 FO-- MICROFILMED 4-10-80 r , 1 and Replacement Fund", such monthly sums, not to exceed $250. 00 per month, as are required to maintain the Renewal and Replacement Fund at its maximum. No further payments shall be required to be made into such Renewal andReplacement Fundwhen there shall have been deposited therein, and as long as there shall 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 Fund 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, enlargements 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. (4) 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 obligations issued pursuant to the Prior Resolution), may be used by the City for any lawful purpose by the City Council. (5) Whenever by reason of the insufficiency of moneys 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 forthwith withdraw from the Utilities Tax Fund and transmit to the Trustee whatever sum shall be necessary tocure 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 21. • 0 0 MICROFILMED 4-10-80 be necessary to cure such existing deficit, .' If the moneys on deposit in the Franchise Tax Fund are insufficient to cure such deficit, the City shall forwith withdraw from the Occupational License Tax Fund and transmit to the Trustee whatever sum shall be necessary to cure, such existing deficit, If, however, all of the above required currentpayments have been made into the Sinking Fund, the Reserve Account, and the Renewal arid Replacement Fund, the City may use the balance of moneys ondeposit in such special funds for any lawful purpose. (6) The Revenue Fund, The Sinking Fund, the Reserve account and the Renewal and Replacement 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, however, that such investments of the moneys :in,:::thei.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 ten (10) years from the date of purchase. Moneys in the Revenue Fund, the Utilities Tax Fund, the Franchise Tax Fund and the Occupational License Tax .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 EXICSE TAXES AND NOREPEAL. The City will not repeal the ordinances now in 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 22. • 0 • _0 MICROFILMED. . 4-10-80 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 collectsuch excise taxes, at the maximum rates permitted by law, to the extent necessary to pay the principal of and interest on said Certificates and to makethe 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 Certificates becoming 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 Certificates, and the pledging of said excise taxes in the manner provided herein shall not be subject to repeal, modification, or impairment by anysubsequent ordinance, resolution, or other proceedings of the governing body of the City or by any subsequent act of the Legislature of Florida. D. MAINTENANCE AND OPERATION. The City will maintain the system and all parts thereof in good condition and will operate the same in an efficient and economical manner, making such expenditures for equipment and for renewals, repairs and replacements as may be proper for the economical operation and maintenance thereof. E. ' .RATESAND 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 23. �.. 0 MICROFILMED 4-10-80 • from time to time, whenever necessary, or upon the recommendation of the consulting engineers, as will always provide revenues sufficient to pay the operation expenses of the system and, together with the excise taxes herein pledged, 125% of the maximum annual debt service requirements on the Certificates and the Prior Lien Certificates. Such rates, fees,: rentals or other charges shall not be reduced so as to be insufficient to provide revenues for such purposes. F. BOOKS AND RECORDS. The City shall also keep books and records of the net revenues of the system and books.: and records of the collection of the excise, taxes, 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 Certificate or Certificates shall have the right at all reasonable times to inspect all records, accounts and data of the City relating thereto. 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 accountants and shall mail, upon request, and make 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 current municipal budget and with the operations of the previous years, the balance sheet, a schedule of insurance in existence, a schedule of the application of all revenues of the system, a schedule of the application of all proceeds of the excise- tuxes, a'•schedule.•of• reserves and invest- ments and a certificate by the auditors stating no default on the part of the City of any covenant herein has been disclosed by reason of such audit: ,A copy o;f such. annual audit, together with monthly operating statements of the system, shall regularly be furnished to William R. Hough and Company, St. Petersburg, Florida. G. NO SALE OR MORTGAGE. The City will not sell, mortgage, lease or otherwise 'dispose of property essential to the proper operation of the system until after all the Certificates, and the 24. • MICROFILMED • 4-IO-80 interest due thereon, shall have been paid in full; 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 sold or disposed of by the City upon the written approval of the consulting engineers. H. INSURANCE. For so long as any of the Certificates are outstanding, the City will carry adequate fire and windstorm insurance on all buildings and structures of the works and properties ofthe system which are subject to loss through fire or windstorm, will carry adequate public liability insurance, and will 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 of the holders of the Certificates. All moneys received for losses under any of 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 with ninety (90) days from the receipt of such proceeds . I. COMPLETION OF ,PROJECT,. The City will complete the construction of the project as provided for in the Prior Resolution in an economical and efficient manner with all practicable dispatch, 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 freeservices of any nature by its system, nor,will any preferential rates be established for users of the same class; the City, including its departments, agencies and instrumentalities, shall avail itself of the facilities or services provided by said system, or any part thereof, and the same rates, 25. MICROFILMED 4-10-80 fees or charges 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,'Yand the City shall transfer from its general funds sufficient sums to pay such charges. The revenues so received shall be deemed. to be revenues derived from the operation oft 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 receive from the system further service until all obligations owed by him to the City onaccount of services shall have been paid in full. This covenant shallnot, however, prevent the City from causing any system connection to be shut off sooner. If such sewer service is shut off, as aforesaid, then before.=st-zah 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. ENFORCEMENT OF COLLECTION. 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 rates, charges, fees and excise taxes as shall become delinquent to the full extent permitted by the Charter 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. 26. MICROFILMED 4-10-80 M. REMEDIES. Any holder of the Certificates or any coupons appertaining thereto, issued under the provisions of this Resolution or any trustee acting for the holders of such Certificates may either at law or in equity, by suit, action, mandamus or other proceedings in any Court of competent jurisdiction, protect and enforce any and all rights, including the right to the appointment of a receiver, existing -underr-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. 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 next succeeding fiscal year. No expenditures for the operation 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 expenditures 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 finding and recommendation by a resolution duly adopted. No such increased expenditures 27. • Q t_. a MICROFILMED • 4-10-80 in excess of ten per centum (10%) of the amount provided therefor in such budget shall in any event be made except upon the further certification of the consulting engineers that such increased expenditures are necessary;and . essential to the continuance in operation of said System. The City small mail copies of such 'annual budgets and all ' res.dlutions authorizing increased expenditures .for` operation and maintenance to William 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 of all such budgets and resolutions be furnished him or them and shall make available such budgets and all resolutions authorizing increase 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 behalf of such holder or holders . 0. PARI PASSU STATUS. In the event that the requirements as set forth in subsection P (1 ) of Section 16 of the Prior Resolution permitting the issuance of additional obligations ranking pari passu with the Prior Lien Certificates shall have been fully met and complied with, the Certificates shall at such time and thereafter rank on a parity as to lien and security and be payable pari passu with such Prior Lien Certificates. In the event that the Certificates shall subsequently rank on a parity with the Prior. Lien Certificates, as above provided, ' then the moneys on deposit in the Sinking Fund, and the Reserve Account, herein created, shall be transferred and credited to the corresponding fund or account' created for the benefit of the prior Lien Certificates, at such time the lien of the holders of the Certificates on the occupational license tax shall be released and extinguished. 28. Q 0 MICROFILMED 4-10-80 • P. ISSUANCE OF OTHER OBLIGATIONS. The City will not issue any other obligations, except under the conditions and in the manner provided in. the Prior Resolution, 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. And 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 of the Prior Resolution, 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. Q. MANDATORY CONNECTIONS. The City will, within sixty (60) days after completion of the project, to the full extent permitted by law, require all lands, buildings and structures within the City, within 150 feet of such system or any part thereof, or which can use the facilities and services of such system, to connect with and use such facilities and services, to pay a connection charge in the amount of $ , and to cease all other means and method for the collection, purification, treatment 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. SUPERINTENDANT OF PUBLIC WORKS. The Superintendant of Public Works, as required by the City Charter, shall be responsible 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, operation of the system to be covered by a fidelity bond written by a responsible indemnity company in reasonable al'nounts adequate to protect the City from loss. 29. . (2) ,0 MICROFILMED 4410-80 S. NO COMPETING SYSTEM. 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, corporation or body, agency or instrumentality whatsoever, for the furnishing of sewer service to or within the City. T. CONSULTING ENGINEERS. The City shall employ qualified consulting engineers, of national reputation, in an advisory capacity to inspect the system annually and make reports and recommendations with respect thereto, with respect to any proposed changes in the scheduleof rates, fees and charges and concerning the operation, maintenance, replacements, property additions and improvements thereto. • Upon request of any holder of Certificates, a copy of each such annual report shall be mailed postage prepaid to sucholder, a copy thereof shall 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. From the moneys derived from the sale of such Certificates there shall first be deducted and transmitted to trustee for deposit in the Sinking Fund an amount equal to the interest accrued or to accrue on the Certificates to August 1, 1966. The balance of the proceeds shall be deposited by the City in a special bank account created and established in Section 17 of the Prior Resolution to be known as the "Sewer System Construction Fund", (hereinafter referred to as the "Construction Fund" ), Such fund shall be kept separate and apart from all other accounts of the City and shall be with- drawn, used and applied by the City solely to the payment of the cost of acquisition, construction and ompletion of the system of the City, purposes incidental thereto, and for no other purpose whatsoever. If for any reason such proceeds, or any part thereof, are not necessary for, or are not applied to, such purposes, then such unapplied proceed shall be deposited by the City in the Reserve Account or into the Sinking Fund. 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 applied, in favor of the holders of the Certificates. 300 0 mICROFIU-IED _ _ ._ 4-10-80 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 or in the Construction Fund herein provided for. Immediately prior to the delivery of the Certificates to the purchasers thereof, the City shall enter into a written agreement with the depository bank for said Construction Fund, which said agreement shall provide that all expenditures or disbursements 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 whowill certify such facts in writing to the City Council. SECTION 18. MODIFICATION AND AMENDMENT. No material modification or amendment of this Resolution or of any Resolution amendatory hereof or supplemental hereto, may be made without the consent in writing of the holders .of.,two,thirds or more in principal amount of the Certificates then outStan.ding, provided, ' however, that no modificationor 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 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 Certificates, required above, for such modifications or amendments, without the consent of the holders of all of such Certificates. 31. MICROFILMED 440-80 SECTION 19. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants, agreementsor 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, agreement or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or provisions, and in no way affect the Validity of all the other provisions of this Resolution or of the Certificates or coupons issued thereunder. SECTION 20. VALIDATION AUTHORIZED. T. David Burns, Esquire, City Attorney, be and he is . hereby authorized- arid 'directed to institute appropriate pr'ocee'dings 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. SECTION 21. RENEWAL OF ELECTRIC FRANCHISE. The City hereby covenants with the holders of the Certificates that it will not supplement or renew the electric franchise agreement with the Florida Power and Light Company except and unless the rate of the franchise tax and the terms and conditions of such agreement are as favorable to the City as the same are provided in the present agreement. SECTION 22. SUBSTITUTION OF FRANCHISE TAX. The City hereby covenants with the holderof the Certificates that, in the event it shall acquire the electric power and distribution facilities of the Florida Power and Light Company within the City pursuant to the provisions of the Ordinance enacted August. 28, 1962, or otherwise, or in the event it shall acquire, construct or operate an electric power and distribution system of the Florida Power and Light Company, and the franchise taxes are not available 32. (2) MICROFILMED 4.1Q-8 . to the City to make the payments therefrom required pursuant 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 and distribution system so' owned, , acquired, constructed or operated by it of the amounts required to be paid from the franchise taxes pursuant to the provisions of this Ordinance. SECTION 23. REPEAL OF CONFLICTING RESOLUTIONS. All resolutions or parts of resolutions in conflict herewith are hereby repealed, including Resolution No. 64-2-B, adopted by the City Council on May 19, 1964, and Resolution No. 65-7-C, adopted by the City Council on February 5, 1965. SECTION 24. SCHEDULE OF RATES. The City has heretofore duly published, adopted and now has in effect a schedule of rates, fees, rentals, or other charges for the services of the system as required by Chapter 184, 1' Florida Statutes . SECTION 25. SALE OF CERTIFICATES. The Certificates shall be sold only in the event that other � a funds are not legally available to the City to complete the project. The Certificates may be issued and sold in one lot or in several lots in such manner and at such price or prices as• the City Council shall here- after determine by Resolution. All of such Certificates, when issued, will rank equally as to source and security for payment and in all other respects . SECTION 26. EFFECTIVE. DATE. This Resolution shall become effective immediately upon its adoption. 33. i, ; MIQROFILMEC` • 4-i0-80 :. • • • • ADOPTED by the City Council of the City of Cape Canaveral, Florida, on the • t, , day of , 1966 • • • ' Mayor 0 '3 � t406,yp? / • ,,• ` f,-,1•0,•.Il 1 °f ds ' •••.Y ` L,3� f�.x� Cep M... • APPROVE ` ORM: City .r - • • • • • • • • • • • 34