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62-FRESOLUTION No. 62-~ A RESOLUTION FURTHER AMENDING A RESOLUTION ENTITLED: "A RESOLUTION AUTHORIZING THE CONSTRUCTION AND ACQUISITION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE WATER SYSTEM OF THE CITY OF BOYNTON BEACH, FLORIDA: AUTHORIZING THE ISSUANCE OF $1, 370, 000. 00 WATER REVENUE BONDS° SERIES 1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS AND IMPROVEMENTS~ PLEDGING THE REVENUES OF SAID WATER SYSTEM TO THE PAYMENT OF SUCH WATER REVENUE BONDS, SERIES 1960, AND PROVIDING FOR THE RIGHTS AND REMEDIES OF THE HOLDERS THEREOF," AS AMENDED. WHEREAS, by resolution heretofore duly adopted on the llth day of January, 1961, and entitled: "A RESOLUTION AUTHORIZING THE CONSTRUCTIONS AND ACQUISITION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE WATER SYSTEM OF THE CITY OF BOYNTON BEACH, FLORIDA: AUTHORIZING THE ISSUANCE OF $1, 370, 000. 00 WATER REVENUE BONDS, SERIES 1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS AND IMPROVEMENTS: PLEDGING THE REVENUES OF SAID WATER SYSTEM TO THE PAYMENT OF SUCH WATER REVENUE BONDS, SERIES 1960, AND PROVIDING FOR THE RIGHTS AND REMEDIES OF THE HOLDERS THEREOF!', as amended / by resolution adopted on February 6, 1961 and May 15, 1961 (hereinafter collectively referred to as "Resolution"), the City Council authorized the issuance of $1, 370, 000. 00 Water Revenue Bonds, Series 1960, dated Decemb~ 1, 1960, (hereinafter sometimes called the "Bonds"); and WHEREAS, said bonds have been heretofore validated and sold and are now outstanding; and WHEREAS, it is deemed advisable and in the best interest of the City of Boynton Beach, and the inhabitants thereof, to amend the Resolu- tion with respect to the issuance of additional parity bonds; and WHEREAS, it will be necessary~ obtain the consent in writing of the holders of two-thirds or more in principal amount of said outstanding bonds in order to amend said resolution; NOW, THEREFORE, be it resolved by the City Council of the CITY OF BOYNTON BEACH, FLORIDA: SECTION. 1. That sub-section "(L)" of Section 3.04 of the Resolution as amended, entitled: '% RESOLUTION AUTHORIZING THE CONSTRUCTION AND ACQUISITION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE WATER SYSTEM OF THE CITY OF BOYNTON BEACH, FLORIDA: AUTHORIZING THE ISSUANCE OF $1, 370, 000. 00 WATER REVENUE BONDS, SERIES 1960, TO FINANCE THE COST OF SUCH ADDITIONS, EXTENSIONS AND IMPROVEMENTS: PLEDGING THE REVENUES OF SAID WATER SYSTEM TO THE PAYMENT OF SUCH WATER REVENUE. BONDS, SERIES 1960, AND PROVIDING FOR THE RIGHTS AND REMEDIES OF THE HOLDERS THEREOF" be, and the same is hereby amended to read: (L) ISSUANCE OF PARI PASSU ADDITIONAL BONDS. That no part passu additional bonds, as in this subsection defined, payable part passu with Bonds issued pursuant to this resolution out of the revenues of the Water System shall be issued after the issuance of any Bonds pursuant to this resolution, except upon the conditions and in the manner herein provided. Part passu additional Bonds payable from the net revenues of the Water System may be issued by the City for the purpose of financing the construction and acquisition of additions, extensions and improvements of the City's Water System, or for the construction and acquisition of a sewage dis- posal system or additions, extensions and improvements thereto, only if the average annual net revenues of the Water System during the immediately preceding twenty-four (24) complete calendar months, or the net revenues of the Water System during the immediately preceding twelve (12) complete cal~ months, whichever is the lesser, as certified by the Consulting Engineers, be equal to not less than one hundred forty per centrum (140%) of the largest amount of principal and interest which will mature and become due in any succeeding year thereafter on: (1) the Bonds theretofore issued pursuant to resolution, including any part passu additional bonds theretofore issued; outstanding; (2) the part passu additional Bonds proposed to be issued; .nd (3) any obligations then outstanding payable from and having a prior and ~enior lien on the net revenues of the Water System, -2- including the Outstanding Bonds and Outstanding Contractors Refunding Agreements. In determining the amount of net revenues for the purpose of the above paragraph, the Consulting engineers may adjust net revenues by adding thereto the following: (1) The net revenues (computed for such facility on the same basis as net revenues are computed for the Water System) of any ware or sewer utility which the City might have constructed or ~cquired previous to the issuance of such part passu additional Bonds or which the City shall be acquiring from proceeds of such part passu additional Bonds, and which, in the case of lhe acquisition thereof, has been operating for a part of the same base period or periods; (2) In the event a change has been made in the rate schedules for services from the Water System prior lo the issuance of the proposed part passu additional Bonds for a part of the same base period or periods and such change has resulted in an increase in net revenues, seventy-five per cent (75%) of an estimate made by such Consulting Engineers of such additional net revenues for the same base period or periods. (3) In the event the City shall have combined or authorized the combination of a sewer utility with the Water System and shall have established sewer rates or charges to be charged and collecied from users of such sewer utility when service is rendered, sevenly-five per cent (75%) of the net revenues estimated by the Consulting Engineers to be derived during the first twelve (12) months of operation after completion of the con- struction or acquisition of said sewer utility, or additions, extensions and improvements thereto, from the proposed users of the sewer utility or part thereof to be financed by part passu additional Bonds together with other funds on hand or lawfully obtained for such purpose and deposited in a Construction Trust Fund to be established for such purpose, which are then actual customers of the Water System of the City. -3- If the City shall have constructed or acquired a sewage dis- posal system or part thereof and shall have combined, or shall authorize the combination of the same with its Water S.ystem, and shall pledge the net revenues from such sewage disposal system or part thereof to the pay- ment of said part passu additional Bonds proposed to be issued, then the term "Water System" shall be deemed to include such sewage disposal system or part thereof so constructed or acquired and the revenues derived by the City from the operation of the same shall be deemed to be included in the revenues of said Water System. For the purpose of computing "the largest amount of principal and interest maturing and becoming due in any succeeding year", the amounts provided to be deposited in the Bond Redemption Account, in each year, pursuant to the provisions of this resolution or any resolution amenda- tory hereof or supplemental hereto for the purpose of paying the principal of term Bonds prior to maturity and for which no serial maturities have been provided shall be deemed to be serial maturities, and the amount of principal maturing in the year 1993 or any other year for such term Bonds shall not be computed. For the purpose of this subsection (L), the phrase "bondst theretofore issued pursuant to this resolution", shall be deemed to include the $1, 370, 000 Bonds originally authorized to be issued pursuant to this resolution, and also any additional part passu Bonds theretofore issued under the conditions and in the manner provided in this subsection (L). The term, "part passu additional Bonds", as used in this subsection (L), shall be deemed to mean additional obligations evidenced by Bonds issued under the provisions and within the limitations of this sub- section payable from net revenues of the Water System, as hereinbefore authorized, part passu with Bonds originally authorized and issued pursuant to this resolution. Such Bonds shall be deemed to have been issued -4- pursuant to this resolution the same as the Bonds originally authorized and issued pursuant to this resolution, and all of the covenants and other pro- visions of this resolution (except as to details of such Bonds evidencing such part passu additional obligations inconsistent therewith), shall be for the equal benefit, protection and security of the holders of any Bonds originally author- ized and issued pursuant to this resolution and holders of any Bonds evidencin additional obligations subsequently issued within the limitations of and in compliance with this subsection. All of such Bonds regardless of the time or times of their issuance shall rank equally with respect to their lien on and source and security for payment from the net revenues of such Water System without preference of any Bonds or coupons over any other. The term, "part passu additional bonds", as used in this subsection (L), shall not be deemed to include bonds, notes, certificates or other obligations subsequently issued, the lien of which on the revenues of the Water System is subject to the prior and superior lien on such revenues of Bonds issued pursuant to this resolution, and the City shall not issue any obligations whatsoever payable from the revenues of the Water System which rank equally as to lien on and source and security for payment from such revenues with Bonds issued pursuant to this resolution, except in the manner and under the conditions provided in this subsection (L). No part passu additional Bonds, as in this subsection (L) defined shall be issued at any time, however, unless all of the payments into the funds provided for in this resolution on Bonds then outstanding, and all other sinking fund, reserve or other payments provided for in this '.on shall have been made in full to the date of issuance of said part ~assu additional Bonds, and the City shall have fully complied with all the agreements and terms of this resolution. SECTION 2: This Resolution shall become effective ~ly upon its being consented to by the holders of two-thirds (2/3) or in principal amount of the outstanding Water Revenue Bonds, Series 1960, ed by the Resolution to which this resolution is arnendatory. -5- PASSED and ADOPTED this A. D. 1962 . CITY OF BOYNTON BF~CH, FLORIDA, (CORPORATE SEAL) )lVI~y o r Vice M~yor// -6-