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HomeMy WebLinkAboutResolution No. 1965-07 h 1) MICROnL D "DE .,. 4-10-80 RESOLUTION NO. 65-7 A RESOLUTION PROVIDING 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; [I 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 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 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 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. Res . 65-7 Page 1 of 41 0 MICROFILMED 4-10-80 TwE. 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 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. 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 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 be derived from the 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 Res . 65-7 Page 2 of 41 MICROFILMED A 4-10-80 utilities tax and the proceeds of the franchise tax (hereinafter collectively referred to as "excise taxes") will be sufficient to pay the principal of andinterest on the Certificates , herein authorized, as the same become due, all sinking fund, reserve and other 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 of 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 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 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 and interest on the Certificates , herein authorized, or to make any of the reserve, sinking fund or other payments Res, 65-7 Page 3 of 41 - a MICROFILMED ;.. 4-10-80 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 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 thereto, hereafter issued 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, or 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 Res . 65-7 Page 4 of 41 (2) 0 MICROFILMED 4-10-80 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 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 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 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. "Excise 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 30. J. Words importing singular number shall include the Res . 65-7 Page 5 of 41 a Id MICROFILMED : 4-10-80 plural 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 convenants 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 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 AND CONSTRUCTION OF PROJECT. Subject and pursuant to the provisions of this Resolu- tion, certificates of the City to be known as "Sanitary Sewer Revenue Certificates" , herein sometimes referred to as "Certificates" , are hereby authorized to be issued in the aggregate principal amount of One Mllion 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 hereby 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 rate; such interest to be payable semi-annually February 1 and August 1 of each year, and shall matureserially in numerical order, lowest numbers first, on February 1 in the years and amounts, as follows : Res. 65-7 Page 6 of 41 . G MICROFILMED 4-10-80 YEAR PRINCIPAL YEAR PRINCIPAL 1969 $ 5 , 000 1982 $55 ,000 1970 10, 000 1983 55 ,000 1971 15 , 000 1984 60 ,000 1972 20, 000 1985 60, 000 1973 30, 000 1986 65 ,000 1974 35 ,000 1987 65 , 000 1975 40, 000 1988 70 ,000 1976 40,000 1989 75 ,000 1977 45 , 000 1990 75 , 000 1978 45 , 000 1991 80 ,000 1979 45 , 000 1992 85 , 000 1980 50,000 1993 85 , 000 [I 1981 50, 000 1994 90, 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, SECTION7 , 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 case any one or more of the officers who shall have signed or sealed any of the Certificates shall cease to be [I such officer of the City before the Certificates so signed and sealed shall have been actually sold and delivered, such Certi- ficates may nevertheless 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 Res . 65-7 Page 7 of 41 . MICROFILMED 4-10-80 may be signed and sealed on behalf of the City bysuch 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 Certi- ficates such person may not 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 [I 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 sigma-- - 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 .8 . 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 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 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 office of the City Clerk, such registration to be noted on the back of said Certificates in the Res . 65-7 Page 8 of 41, • a MICROFILMED 4-10-80 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 deliveryy shall be restored. At the option of the holder, the [i 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 , ifany, 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 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 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 [I of issuing a substitute Certificate or coupon, the City may pay the same, upon being indemnified as aforesaid, and if such Res . 65-7 Page 9 of 41 o - o A-ICROFILMED 440.80 Certificate or coupon be lost, stolen or destroy' d'; 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 Certifi- cates and coupons issued hereunder. SECTION 10. REDEMPTION PROVISIONS , The Certificates of this issue maturing in the years 1969 through 1975 , inclusive, shall not be redeemable prior to 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 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 . Res . 65-7 Page 10 of 41 o , o r- MICROFILMED 4-10-80 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 [I 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 the validation 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 any subsequent resolution adopted prior to the issuance thereof: No. $5 , 000 UNITED 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 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 here- inafter mentioned, the principal sum of FIVE THOUSAND DOLLARS Res . 65-7 Page 11 of 41 • 0 0 MICROFILMED 4-10-80 and to pay solely from such special funds , interest on such prin- cipal sum from the date hereof at the raterof per centum ( 770) 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 [I 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 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 (hereinafter 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 . 65-7 , duly adopted on . January 25 , 1965 , as amended by Resolutions No . ' 6'5'-7-A and 65-7-B ,on ,February 5 , 1965 , (hereinafter referred to as the -"Resolution') , and is subject to all the terms and conditions of such Resolution. This Certificate and thecoupons appertaining thereto 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 Res , 65-7 Page 12 of 41 MICROFILMED 4-10-80 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 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 [I 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 Res . 65- 7 Page 13 of 41 0 MICROFILMED 4-10.80 _A. 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 insufficient 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 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 Certi- ficate and of the issue of Certificates of which 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 Certificateor 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 Res . 65-7 Page 14 of 41 Q MICROFILMED 4-10-80 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, 197.5 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 Certifi- cates 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, to be executed with the facsimile signature of the Mayor, all as of the first day of February, 1965 . CITY OF CAPE CANAVERAL, FLORIDA [I By . Mayor (SEAL) Res . 65-7 Page 15 of 41 o o MICROFILMED 4-10.80 ATTESTED: The foregoing Certificate and attached coupons have been approved by me as to form, City Clerk language and execution. City Attorney FORM OF COUPONS 0 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 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 [I 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 Res . 65-7 Page 16 of 41 MICROFILMED 4-10-80 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 it may 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 of In Whose Name Signature of Registration Registered Registrar SECTION 13 . CERTIFICATES NOT DEBT OF CITY. Neither the Certificates nor coupons shall be or constitute general obli- gations 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 a lien upon and a pledge of the special funds as herein [I 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 Res . 65-7 Page 17 of 41 (2) r a MIR F ED 4-1U-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 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. 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 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 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 [I 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 Res . 65-7 Page 18 of 41 0 MICROFIL ED 4-10-80 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 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 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 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 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 Res. 65-7 Page 19 of 41 r- MICR0F ED 4-1046 designated "Franchise Tax Fund" . All moneys in the Revenue 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 B of this Section 16 . B. FLOW 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 next semi- annual interest payment 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 payments , as provided above, shall include an amount sufficient to pay the fees and charges of the paying agent. Such monthly payments [i required for interest becoming due August 1 , 1965 shall be increased proportionately to the extent required to pay such August 1, 1965 interest . Res . 65-7 Page 20 of 41 (2) �-� MICROFILMED 4-10-80 (3) Moneys in the Revenue Fund shall next be used 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 or all of 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 made with Palm Beach Investment Co . , Inc. Thereafter, but commencing not later than June 15 , 1965 , 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 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 . Res . 65-7 Page 21 of 41 0 0 MICROFILMED 4-10-80 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 then due or thereafter to become due on such Certificates then out- standing. [I (4) The City shall next withdraw from the Revenue 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 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. (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 [I City for any lawful purpose by the City Council . Res . 65-7 Page 22 of 41 0 'o MICROFILMED 4-10-80 (6) 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 to cure such existing deficit . If the moneys on deposit in the Utilities Tax Fund are insufficient [I 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, 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 Maintenance Elle Fund, the Sinking Fund, the Reserve Account , the Renewal and Re- placement Fund and all other special fundsestablished, 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 invest- ments of the moneys in the Sinking Fund shall mature not later [I 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 , 1975 . Res . 65-7 Page 23 of 41 (2) 0 MICROFILMED 4-10-80 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 the excise taxes and will not amend or modify said ordinances in any manner so as [I 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 taxesto 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 Certi- ficates , and the pledging of said excise taxes in the manner pro- vided herein shall not be subject to repeal , modification, or [I impairment by any subsequent ordinance, resolution, or other pro- ceedings of the governing body of the City or by any subsequent act of the Legislature of Florida. Res . 65=7 Page 24 of 41 Q ..Q MICROFILMED 4-10-80 The pledge of the excise taxes made in this Resolution shall 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 this Resolution. D. MAINTENANCE AND OPERATION. The City will maintain the system and all parts thereof in good condition and will operate [I 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 andmaintenance 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 upon the recommendation of the consulting engineers , as will always provide 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 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 suchbooks and records shall be kept separate and apart from all other books , records and accounts of the City and any holder of [i a Certificate or Certificates shall have the right at all reasonable times to inspect all records , accounts and data of the City relating thereto . Res. 65n7 Page 25 of 41 0 0 MICROFILMED • 4-10-80 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 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 cur- rent 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 taxes, a schedule of reserves 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 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 MORTGAGE , TheCity 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 full ; except that any of the property comprising a part of the system which has become obsoleteor has deteriorated so that the same isuseless 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 Res, 65-7 Page 26 of 41 0 0 MICROFILMED 4-10-80 insurance on all buildings and structures of the works and proper- ties of the system which are subject to loss through fire or wind- storm, 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 within 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 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 berendered 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 , agencies 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 applicableto 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 Res. 65-7 Page 27 of 41 P MICROFILMED 4-10-80 its general 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 receive 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 then 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 taxesas 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 [I as provided in this Resolution and not otherwise. M. REMEDIES. Any holder of the Certificates or any coupons appertaining thereto, issued under the provisions of this Res . 65-7 Page 28 of 41 0 0 MICROFILMED 4-10-80 Resolution or any trustee acting for the hjlders of such Certifi- cates may either 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 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 expendi- tures 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 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 finding and recommendation by a resolution duly adopted. No such increased expenditures 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 Res, 65-7 Page 29 of 41 MICROFILMED 4-10-80 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 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 behalf of such holder or holders , 0. 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 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 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 , Res . 65-7 Page 30 of 41 . oo MICROFILMED 4-10-80 P. ADDITIONAL PARITY CERTIFICATES. The City reserves the 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 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 utilities tax 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 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 fiscal years shall equal not less than 125% 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; or /. 2 . (a) Such additional parity bonds shall be issued [I solely for the purpose of paying the cost of additions , extensions , improvements and repairs to the system. Res . 65-7 Page 31 of 41 0 (2) MICROFILMED 4-10-80 (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 utilities tax for each of the two fiscal years immediately preceding the date of the issuance of the proposed parity certificates with respect to which such [I 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 fiscal years shall equal not less than 150 of the maximum combined annual principal and interest requirements which will become due in any year thereafter, 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 at least 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 1 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 [I funds and accounts , established hereunder, shall have been made to the full extent required; and 5 . 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, Res . 65-7 Page 32 of 41 a Q MICROFILMED 4-10-80 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 [I 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 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 , eighty per cent (80%) of an estimate made by such Consulting Engineers of such additional net revenues for the same base period or periods , Q. MANDATORY CONNECTIONS . The City will , within sixty [i (60) days after completion of 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 thereof, . or Res . 65-7 Page 33 of 41 a MICROFILMED 4-10-80 • which can use the 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 WORKS . The Superintendent of Public Works , 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 operation of the system to be covered by a fidelity bond written by a responsible indemnity company in reasonable amounts adequate to protect the City from loss . 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, 'corpora'- tion or body, agency or instrumentality whatsoever, for the furn ishing 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 schedule of 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 Res . 65-7 Page 34 of 41 ft...� MICROFILMED 4-10-80 postage prepaid to such holder, 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 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 . B. The sum of $50, 000 shall be transmitted to the 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 due and owing to Palm Beach Investments Company, Inc. After full andcomplete 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 from 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 Res . 65-7 Page 35 of 41 MICROFILMED 4-10-84 any reason such proceeds , or any part thereof, are not necessary for, or are not applied to, such purposes , then 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 applied, 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 uponthe 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 recouunended 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 agreement 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 Council . SECTION 18 . INITIAL SCHEDULE OF RATES , The initial schedule of rates , fees and other charges to be imposed for the [I services or facilities furnished by the system, which initial schedule shall be effective immediately upon the date of comple- tion of the system, but which may be subject to such revision Res, 65-7 Page 36 of 41 C Q MICROFILMED 4-10-80 O n. from time to time hereafter as may be necessary to carry out the requirements 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 Multiple Family & 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 First Unit 3 . 75 'Additional Units 1 , 25 Public Buildings 6 . 25 Churches 3 , 75 Commerical & Industrial 1007 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 statements rendered 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 centum (5%) of such monthly amount 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 . 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 Res . 65-7 Page 37 of 41 MICROFILMED `"� 4-10-80o 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 maturityof ' 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 [I 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 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 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, [I 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 . Res . 65-7 Page 38 of 41 Q Q MICROFILMED 410.80 SECTION 22. PUBLIC HEARING. A public hearing relating to the initial schedule of rates , fees and charges to be made for the use of the services and facilities of the system shall be held at the City Hall Annex on February 5 , 1965 at 7 : 30 o ' clock, P. M. The City Clerk is hereby directed to publish a notice one time in the Cocoa Tribune , a newspaper of general circulation in the City published in Brevard County, Florida (there being no newspaper published in the City) at least ten days prior to the date of the hearing as fixed therein, such notice shall be in substantially the following form: NOTICE TO ALL INTERESTED PROSPECTIVE USERS . OF THE SERVICES AND FACILITIES OF THE SANITARY SEWER SYSTEM OF THE CITY OF CAPE CANAVERAL, FLORIDA. NOTICE IS HEREBY GIVEN to all prospective users for the services and facilities of the sanitary sewer system of Cape Canaveral , Florida, all owners , tenants , and occupants of property to be served thereby and all other persons interested therein, that a public hearing relating to the initial schedule of rates , fees and charges to be made for the use of such services and facilities of the sanitary sewer system will be held at 7 ;30 o' clock P. M. on the 5th day of February , 1965 at the regular meeting place of the Council in the City Hall in Cape Canaveral , Florida at which time and place any interested persons will be heard concerning the proposed initial rates, fees and charges for the use of the services and facilities of the sanitary sewer system as set forth below: Res. 65-7 Page 39 of 41 0 0 MICROFILMED 4-10-84 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 Multiple Family & 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 First Unit 3 . 75 Additional Units 1. 25 Public Buildings 6 . 25 Churches 3 . 75 Commercial & Industrial 1007 of Water Bill with minimum of $3 . 75 Donna J. Anderson City Clerk A copy of the proposed schedule of such initial rates , fees , and charges is presently on file in the office of the City Clerk and shall be available for inspection by all interested parties . SECTION 23, REPEAL OF CONFLICTING RESOLUTIONS AND RATE SCHEDULES. All resolutions or parts of resolutions in conflict herewith are hereby repealed, including Resolution No ,' '6'4'-2B., adopted by the City Council of May 19th , 1964 and that proposed schedule of initial rates , fees and charges adopted on June 3 , 1964 is repealed. SECTION 24. EFFECTIVE DATE , This Resolution shall become effective upon the final adoption thereof after the holding of the public hearing provided for in Section 22 hereof. Res . 65-7 Page 40 of 41 .. • Q � .Q MICROFILMED ,� • 4-10-80 • SECTION ,25. SUBSTITUTION OF FRANCHISE TAX. The City hereby covenants with the holders of the Certificates that, in the event it shall acquire the electric power and distribution . facilities of the 'F ida Tower and Light Company within the City, pursuant to the provisions of the ordinance enacted Aug,,st PR, 1962 or otherwise; or in the event [1) it shall acquire; construct or operate an elects is power and distribution system within the City in place of the electric power and .distribution system of tfie Fl ori ria power an1 Tei o-nt Company , and the franchise taxes are not available to the City to make the payments there rQl.m u-ire - reG . pursuant to the Provisions of this Ordinance, the City will mase • payment from the net revenues first available to it from the • operation of any such electric powe_ 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. ADOPTED by the City Council of the City of Cape Canaveral. / Florida,. on the _4.-day of , ° `/„„ -, , , 1965... ! �1 /,„--- / f`. , dt t • tf; Mayor 1 - _— ATTTFQ 7 )�.�,�.. ). � ( j,.�,-,r, . Ci y Clerk' • Ii) -First Reading and. approval January 25, 1965. PublicHearing Second and Final Reading February 5, 1965. Posted the 26th day of January, 1965 APPROjE 1 TO FOrM: , Cit fM:t'corne i • I . y 1 32 . • PAGE'// OF4j n 1i 21