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Ordinance 221 ORDINANCE ~~221 AN ORDINANCE PROVIDING FOR ADDITIONS, IMPROVE- MENTS AND EXTENSION OF T:EIE WATERWORKS SYSTEM OF THE CITY OF LONGWOOD, FLORIDA; PROVIDING FOR THE ISSUANCE OF $125,000.00 WATERWORKS SYSTEM IM- PROVEMENT NOTE OF THE CITY OF LONGWOOD, FLORIDA; PROVIDING-FOR THE SECURITY AND PAYMENT THEREOF AND MAKING CERTAIN COVENANTS AND AGREEMENTS IN THAT CONNECTION. BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LONGWOOD, FLORIDA, that: SECTION 1. AIJTH.ORITY FOR THIS ORDINANCE. This ordin- ance is adopted pursuant to the provisions of Chapter 9825, Laws of F-~ Florida, Acts of 1923, as amended, being the Charter of the City of Longwood, Florida,, Section 167.+31, Florida, Statutes, City of New Smyrna Beach v. State of Floridan 132 So. Zd 151, and other applicable provisions of law. SECTION 2. FINDINGS. It is hereby ascertained, deter mined and declared that: A. The City `of Longwood, Florida, (herein- after called "City"), now owns, operates and maintains a water- works system (hereinafter called the "System"), for the benefit of i its inhabitants. The waterworks system has become inadequate to the needs. of the City and it has become urgently necessary to make certain additions, improvements and extensions to said waterworks system (such addition, improvement and extension are hereinafter sometimes referred to as the ''project"), all in accordance with the plans and specifications of A. E. O'NEILL ASSOCIATES, INC., II I consulting engineers, now_on file or to be filed with the City Clerk. B. That pursuant to said Section 167.431, Florida Statutes, and other applicable provisions of law, the City of Longwood has heretofore enacted an ordinance under date of ,l~ October 5,_1945, levying a tax on -each and every purchase of electricity, metered or bottled gas (natural., liquified petroleum gas or manufactured), water service and telephone service within the corporate limits of said City, in the amount as provided. in said ordinance of the payments received by the seller of such utilities services from the purchaser of such utilities services, and said utilities services taxes are not pledged or encumbered in any manner except that the said utilities services taxes have been. pledged to the payment of Street and Water Improvement Bonds of 1959, dated December 1, .1959, now outstanding in the amount of . $35,000. The payment of a1T outstanding bonds have been called for redemption and the payment of the bonds and interest accrued or to accrue has been duly provided for by the City of Longwood, Florida. C. The revenues to be derived by the City from the operation of the system have not been heretofore pledged or hypothecated except that the surplus net revenues of the system have been pledged to the payment of Street and Water Improvement Bonds of 1959, dated December 1, 1959, now outstanding in the amount of $35,000. The payment of all of said outstanding bonds have been called for redemption anal the payment of said bonds and interest accrza.ed or to accrue has been duly provided for by the City of Longwood, Florida. D. That the principal of and interest on the waterworks system improvement Note. to be issued pursuant to this Ordinance will be paid solely fro~~ the revenue resulting from the operation of the waterworks system and the water utilities serv- ices taxes, and it will never be necessary or authorized to levy taxes on any :real property in saidl City to pay the principal of ~ ~r and interest on the Waterworks Sy~~tem Improvement Note to be -2: - i issued pursuant to this Ordinance, and the Waterworks System Im- provement Note, issued pursuant to this Ordinance, shall not con- stitute a lien upon any of the properties of the City of .Longwood, except said water utilities services taxes and the revenues de- rived from the City's water system., and said Note shall not be a general obligation of the City payable from any source other than set forth in this Ordinance.. E. The revenues to be derived from the system together with the water utilities services taxes will be sufficient to pay the. principal of and interest on the Note-and ~ the cost of operation anal maintenance of the said system. F. It is deemed necessary and desirable to pledge the revenues of the system to the payment of the principal of and interest on the Note herein. authorized. SECTION 3. DEFINITIONS. The following terms shall have the following meanings in this Ordinance unless the text otherwise. expressly requires: A. "City" shall mean the City of Longwood, Florida . B. "Act" shall mean Chapter 9825, Laws of Florida, Acts of 1923, as amended, Section 167.431, Florida Statutes, City of New Smyrna Beach. v. State of Florida., 132 So. 2d 151, and all other applicable laws of the State of Florida._ C. "Note" shall mean the $125,000 Waterworks System Improvement Note authorized. to be issued pursuant to this Ordinance, and the interest thereon. D. "System" shall mean the completed water- works system of the City together with any anal all improvements, extensions and additions thereto h~.ereafter constructed or acquired, r -3 - and shall include (without being l:~mited to) all lands or interest therein, plants, buildings, machinery, franchises, pipes, fixtures, equipment and all property, real o:r personal, tangible or intangi- ble now or hereafter owned or used by said City in connection therewith. E. "Gross revenues" or "revenues" of the system shall mean all fees, charges, receipts and rents or other income received by the City from t:he operation of the system or accrued to the City or to any other board or agency of the City in control of the management and operation of said system. F. "Cost of operation and maintenance" of the system shall mean the current expenses, paid or accrued, of operation, maintenance and repair of the system, and shall in- elude insurance premiums and engineering expense, but shall ex- elude any reserves for renewals, replacements and extraordinary repairs and any allowance for depreciation. G. "Water utilities services taxes" shall mean the taxes levied and collected on water utilities services in said City. pursuant to Section 167.431, Florida Statutes and pursuant to the Ordinance enacted by the City Council of said ~ ~ a~ City on October 5, 1945. H. Words importing singular number shall in- elude the plural number in each case and vice versa, and words importing persons shall include firms and corporations. SECTION 4. AUTHORIZATION OF CONSTRUCTION AND ACQUI- SIT ION OF PROJECT. There is hereti~y authorized the construction and acquisition of the project pursuant to the plans and specifi- cations of consulting engineers, ~~resently on file or to be filed with the City Clerk. The cost of the project is estimated by the _L. - consulting engineers at $125,000 and shall be paid out of the proceeds of the Waterworks System.. Improvement Note herein authori- zed. Such cost, in addition to th.e items set forth in the plans and specifications, may include bu.t need not be limited to the acquisition of any lands or interest therein or any other proper- ties deemed necessary or convenient therefor; engineering, legal, financing expenses; expenses for estimates of costs and of reve- nues; expenses for plans, specifications and surveys; the fees of fiscal agents, financial advisors or consultants; administrative expenses relating solely to the construction. and acquisition of the project and such other expenses as may be necessary or inci- dental to the financing authorized, by this Ordinance and the con- struction and acquisition of the project authorized by this Ordin- ance and the placing of same in operation. SECTION S. ORDINANCE; TO CONSTITUTE CONTRACT. In consideration of the acceptance of the Note authorized to be issued hereunder by those who shall hold the same from time to time, this ordinance shall be deemed to be anal shall constitute a contract between the City and such holder or holders. SECTION 6. AUTHORIZATION OF NOTE. Subject and pur- scant to the provisions of this Ordinance, obligations of the City to be known as "Waterworks System Improvement Note" herein some- times referred to as "Note" is hereby authorized to be issued in the aggregate principal amount of ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($125,000.00), together with interest at the rate of five per cent (5%) per ann~.um. SECTION 7. DESGRIPTI:ON OF NOTE. The said Note, as above-described, shall be dated the day of , A. D., 1969, and shall be in the f:or-m of the Note attached hereto -~I - as "Exhibit A", incorporated herein and made a part hereof by a:~ reference . ~,M. SECTION 8. EXECUTION OF THE NOTE. The Note shall be executed in the name of the City by the Mayor and countersigned by the City Clerk and its corporate seal affixed thereto. The Note may be signed and sealed on bE~half of the City by such per- son who at the actual time of the ~~xecution of such Note shall hold the proper office in the City, although at the date of such Note such person may not have held such office or may not have been so authorized. SECTION 9. NOTE NOT `I'0 BE INDEBTEDNESS OF THE CITY. The Note herein authorized shall n~~t be or constitute an indebted- ness of the City within the meanin;; of any constitutional, statu- tory or charter limitation of indebtedness, but shall be payable solely from and secured by a prior lien upon the water utilities services taxes and the revenue of the system provided therefor in this Ordinance. No holder of the Note shall ever have the right to compel the exercise of th~~ ad valorem taxing power of the City or taxation in any form on re,~l property therein for payment thereof or be entitled to payment Hof said Note from any other funds of the City except from the revenue from the system and from the water utilities services taxes. SECTION 10. NOTE SECURED BY PLEDGE OF REVENUES OF SYSTEM AND WA7~'ER UTILITIES SERVICES TAXES. The. payment of the debt of the Nate. issued hereunder shall be secured by a pledge of and a lien upon the revenue of the system and the water utilities services .:taxes. The City does hereby irrevocably pledge such reve- nues to the payment of the principal of and interest on the Note issued pursuant to this Ordinance. , , SECTION 11. ISSUANCE OF OTHER OBLIGATIONS. The City -6- i covenants and agrees that so long as any of the. principal and in- _ terest of the Note is outstanding, it will not create or permit to be created any charge or lien on the revenues thereof ranking equal or prior to the charge or lien on the Note. SECTION 12. DISPOSITION OF SYSTEM. The City coven- ants and agrees that so long as the Note is outstanding, it will not sell or otherwise dispose. of any of the system facilities or any-part thereof, and, except as provided for above, it will not create or permit to be created any charge or lien on the revenues thereof ranking equal or prior to the charge or lien on the Note. SECTION 13. WATER RATES AND CHARGES. So long as any principal of ~r interest on the Note shall be outstanding, the City covenants and agrees with the: holder of the Note issued pursuant to this Ordinance, to maintain and collect such schedule of water rates and charges as may be necessary for the payment of the Note and the cost of operation and maintenance of the system. SECTION : 14. MODIFICATION AND AMENDMENT. No material modification or amendment of this Ordinance or of any ordinance amendatory hereof or supplemental hereto, may be made without the consent in wriiting of the Holder. SECTION 15. SEVERASILITY. If any-one or more of the covenants, agreements or provisions of this Ordinance shaould 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 whatseover be held invalid, then such covenants, agreements or provisions shall be null and void and sha17L be deemed separate from the remaining covenants, agreements or provisions, and in no way affect the validity of all the other provisions of this Ordinance or of the Note issued there- under. SECTION 16. REPEAL OF CONFLICTING ORDINANCES. All or- dinances or parts of ordinances in conflict herewith are hereby ,~,i~_ repealed. SECTION 17. EFFECTIVE DATE. This Ordinance shall take effect immediately upon its final ~~assage. PASSED AND ADOPTED AT A ].tEGULAR MEETING of the City Council of the, City of Longwood, F:Lorida, this 11th day of September , A. D., 1969. FIRST READING: September 11, 196g SECOND READING•September 11, i96g l~ ~y//~///fJ~/j ~ CHAIRMAN, City Council of the City of Longwood, Florida A -EST City Clerk APP OVED th is f ~ day of ep ember, A. D. 1969. ~1 ~ ~ MAYOR,JCITY OF LONGWOOD, LORIDA ATTEST: ' r'~ City Clerk - F' V $125,000.00 UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF SEMINOLE CITY OF L~ONGWOOD WATERWORKS SYSTEM IMPROVEMENT NOTE KNOW ALL MEN BY THESE PRESENTS, that the CITY .OF LONGWOOD, a municipal corporation in Seminole County, Florida (hereinafter called "CITY"), for value received, hereby promises to pay to the SOUTH SEMINOLE BANK, Fern Park, Florida, the principal sum of ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($125,0.00.00), together with interest thereon from the date hereof at the rate of five percent (5%) per annum, solely from the special funds here.inafte.r me.ntion- ed, in the following manner: The CITY shall pay equal monthly installments of principal in the a;noun~t of $1,488.09, plus inter- est at the rage of five percent (5'%) per annum on the then out- standing principal balance, the first said principal installment, ~ plus interest, commencing thirty (.30) days after the date of this Note, and continuing thereafter until this obligation is paid in full. Both principal of and interest on this Note are payable in lawful money of the United States Hof America at the SOUTH SEMINOLE BANK, Fern Park, Florida. This Note is issued pursuant to the Constitution and Laws of the State of Florida, particularly Section 169.01, Florida Statu- ~ tes, the Charter of the City of Longwood, and the following proper action of the City Council: Ordin,~nce number 221 duly adopted on the 11 day of September , 196'9, and Resolution adopted on the 11 day of Sept~~ember , 1969. This Note is payable as to principal and interest solely from and secured by a prior lien upon and a pledge of (1) all revenues resulting from the operation ~,i EXHIBIT A _ - - of the waterworks system, both present and future, of the CITY, and (2) all water utility tax collected on said water revenues. The aforesaid prior lien and pledge of water utility tax is given with the understanding that the BANK will release the said lien and pledge if and when the BANK, in its absolute discretion, con- siders that sufficient experience in the repayment of this loan has been obtained to justify the release of said lien and pledge. Ref- erence is made to the said Ordinance. and Resolution for the provi- sions relating to the security of this Note and the duties anal ob- ligations of the CITY. This Note is payable solely from and secured by lien upon and ' a pledge of the water utilities services taxes and the revenue de- rived from the operation of the waterworks system of the CITY and shall not constitute a general obligation of the CITY. It is expressly agreed by the Holder of this Note that the full faith and credit of the CITY are not pledged to the payment of the principal of and interest on this Note and that such Holder shall never have the right to require 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 such principal or interest thereon, or be entitled to payment of such principal and interest from any other fund of the CITY except from the revenue derived from the operation of the system and the water utilities services taxes. This Note shall not constitute a lien upon the waterworks system or any part thereof or upon any other property of or in the CITY, but shall constitute a lien only on the revenue derived from the operation of the. system .and the water utilities services taxes. This NOtE~ is redeemable at the, option of the CITY, at any time, for the then unpaid principal balance and accrued interest; il~' provided, however, that written notice of such redemption shall -2- , have been given to the BANK at least ten (10) days prior to. the date of redemption. It is hereby certified and recited that all ants, conditions and things required to exist, to happen and to be performed pre- cedent to and in the issuance of this 1Vote, exist, have happened and have been performed in regular and due form and time as requir- ed by the Constitution and Laws of the State of Florida applicab7Le. thereto, and that the issuance of this Note does not violate any constitutional or statutory limitation. IN WITNESS WHEREOF, the. CITY ~DF LONC~TOOD, FLORIDA,has issued this.Note and has caused the same to be signed by its Mayor, and the corporate seal of said CITY to be impressed hereon, and attest- ed by its City Clete all as of the II ,'day of , ~,t~ , A. D., 1969. CITY ~O~LONGWOOD, FLO DA BY: / MAYOR ATTEST.: ~~A~ CITY CLERK A~ -3 -