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HomeMy WebLinkAbout532 ORDINANCE NO.... 532 AN ORDINANCE AUTHORIZING THE CONSTRUCTION OR ACQUISITION OF ADDITIONS, E~TENSIONS AND IMPROVEMENTS TO THE COMBINED WATER AND SEWER SYSTEM OF THE CITY OF SANFORD, FLORIDA, AND AUTHORIZING THE ISSUANCE OF $1,175,000 WATER AND SEWER REVENUE CERTIF- ICATES FOR SUCH PURPOSES. BE IT ENACTED BY THE PEOPLE OF THE CITY OF SANFORD, ARTICLE I FLORIDA STATUTORY AUTHORITY, FINDINGS AND DEFINITIONS Section 1.01 AUTHORITY OF THIS ORDINANCE. This ordinance is adopted pursuant to the Charter of the City of Sanford, Florida, constituting Chapter 26,210, Laws of Florida, Special Acts of 1959, amended, and other applicable provisions of law. Section 1.02. FINDINGS. It is hereby ascertained, deter- mined and declared that: A. The City of Sanford, Florida (hereinafter called the "City,), now owns, operates and maintains a Water System and a Sewer System which have been combined into one indivisible Water and Sewer System (hereinafter referred to as "Water and Sewer System") for the supply and distribution of water within and without said City and the furnishing of sewer services within said City and derives revenues from the operation of the Water System of the combined Water and Sewer System and will derive revenues from the Sewer System of the combined Water and Sewer System. B. The net revenues derived or to be derived from said Water System of the combined Water and Sewer System are pledged in an amount sufficient for the payment of the interest on the following outstanding obligations of said City together with an amount equal to $6,260 per annum for Sinking Fund purposes: (1) $478,000 Series B Refunding Bonds, dated March 1, bearing interest at the rate of per annum until August 31, 1957, 1937, ~WO and one-fourth per centum (2 1/~%) at the rate of two mhd n.._hol* ~.-- centum (2 1/2%) per annum from September 1, 1957 to August 31, 1967, and at the rate of three per centum (3%) per annum from September l, 1967 until paid, and all maturing on September l, 1977, being the bonds now outstanding of an original issue of $626,000 Series B Refunding Bonds authorized by a resolution of the City Co~naission of said City adopted on Februar~y 1, 1937, said $478,000 Series B Refunding Bonds, dated March l, 1937, being hereinafter sometimes referred to as "Out- standing Bonds of 1937". That the holders of said Outstanding Bonds of 1937 have a first lien on the net revenues derived from the operation of the Water System of said Water and Sewer System, in the amount above stated, which lien is prior and superior to the lien on such net revenues of the holders of the Certificates authorized to be issued by this ordi- C. The revenues of the Water System of said Water and Sewer System are not pledged or encumbered in any manner, except as described in subsection 1.02 (B) above and the revenues to be derived from the Sewer System cf said Water and Sewer System are not pledged or enc~a- bered in any manner. D. It is necessary and essential to construct or acquire additions, extensions and i~uorovements to said Water and Sewer System, consisting of, but not being limited to, improvements and additions to the water plant and system, sanitary sewer rehabilitation and improvements and sanitary sewer extensions and other purposes necessary, appurtenant or incidental thereto, all in accordance with the plans and specifications pre?ared by Robert M. Angas and Associates, Consulting Engineers, Jacksonville~ Florida, and heretofore filed with and approved by the City Co~muission of the City of Sanford, which additions, extensions and improvements are hereby aut~orized. E. That the estimated cost of the construction or acquisi- tion of said additions, extensions and improvements to said Water and Sewer System is the s~u of ~i1,175~000. Such cost, in addition to the specific items set forth in subsection D above, shall be deemed to in- clude the acquisition of any lands, or interest therei~ or of any fix- tures or equipment or properties deemed necessary or convenient there- for, interest upon Certificates issued pursuant to this orminance maturing on May 1, 19~4, and November 1, 1954, or until si~ months after the completion of 'the additions, extensions and improvements to said Water and Sewer System authorized by 'this ordinance, whichever is later; engineering and legal expenses; expenses for financial ser- vices; expenses for estimates of costs and of revenues; expenses for plans, specifications and surveys; and such other expenses as may be necessary oz. incidental to the financing authorized by this ordinance and the construction of the additions, extensions and i~nprovements to and for said Water and Sewer System authorized by this ordinance and the placing of same in operation. F. That the esti~mted revenues to be derived in each year hereafter from the operation of said Water and Sewer System will be sufficient to pay all the cost of the operation and maintenance of said Water and Sewer System, the principal of and interest on the Cer- tificates to be issued pursuant to this ordinance as the same become due, and all sinking fund, reserve and other payments provided for in this ordinance, and required payments for all other obligations payable from said revenues, as the same become due. G. That the principal of and interest on the Certificates to be issued pursuant to this ordinance and all of the sinking fund, reserve and other payments provided for in this ordinance will be paid solely from the revenues derived from the operation of said Water and Sewer System, and shall not const~t~ ~ ~. ~ ~ .... Section 1.03. O~INAMCE CONSTITUTES CONTraCT. In considera- tion of the acceptance of the Certificates authorized to lac issued hereunder by those who shall hold the same from time to time, this ordinence shall be deex~led to be and shall constitate a contract between the City of Sanford, Florida, snd such Certificate holders, and the co~enants and agreements herein set forth to be perfor, aed by said 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 o£ equal rank and without preference, ~riority or distinction of any of the Certificates or coupons over any other thereof except as expressly provided therein and herein. Section 1.04. DEFINITIONS. That as used in this resolution the following terms shall have the following meanings: A. "City" shall mean the City of Sa~ord, Florida. B. "Act" shall mean the Charter of the City being Chapter 26,210, Laws ~ Florida, Special Acts of 19~9, as amended. C. "Water and Sewer System" shall mean the complete munici- pal water and sewer system now owned by said City for the supply' and distribution of water within and without said City and the furnishing of sewer services within sa~d City', including the additions, extensions and improvements to said Water a~ Sewer System authorized by this ordinance, either within or without said City, toget~ r with. any and all improvements, extession~ and addi~ons to said Water and Sewer Sys- tem, or any part thereof, hereafter conat~cted or acquired, and shall include (without being limited to) all lands or interest therein, plants, buildings, machinery, franchises~ pipes~ fixtures~ equipment and all property, real or personal, tangible or intangible, now or hereafter owned or used in connection with said Water and Sewer System. D. "Facilities" shall mean all the facilities of said Water and. Sewer System~ and all carts th~r_ ~ ...... ~ ~ ~ .... any parts thereof, by any additionS, bettermentS, exte~SiOnS, imprOVe- ments theretO, or properGY of any kind. or nature, real or perSonal, · e b~ercafter constructed or acquired. tangible or intangmbl , · · s" shall mean the ~1,175~000 Certificates E. .certifmcate originally' a~thortzed to be issued pursuant to this ordi~aaCe, and the ..... theretO, and also an~ pari paSSU adoi- interest coUpOnS aP tional certificateS, and 'th~ int~rest coupons aPpertaining theretO~ hereafter issued pursuant to and ~d~r the termS, restrictions and ' d in this ordinance- · · s contamne ,,Certificate holder", or condlt leu · s" F. .Holder of Certtfmcate or similar terns, shall ~%ean an~ perSOn who shall be the bearer or owner of any outstanding certificate or CertificateS registered to bearer or not registered, or the registered owner of ~Y outstanding Certifi- cate or CertificateS wh~ch shall at t'he time be registered other than to bearer, or of an~' coupons representing interest accrued or to ac- crue on said Certmfmcate · RevenueS" shall ~ean all rateS, G. .RevenUeS" or "GroSS fees~ charges or other income received by the City, or accrued to the City or an~ agenC~ thereof tn control of the management and operation of said ~ater and Sewer System~ and all ]oartS thereof, from the opera- tion of said Water and Sewer System, all as calculated in accordance with so~d accounting praC0mc · H. .Operating ExpenSes" shall mean the current expenses paid or accrued, of operation, maintenance and ordinary current~patrS of the Water and Sewer System or, when so applicable~ either the Water System or Sewer System of said Water and Sewer Sys0em and its facili- ties and shall include, withomt limiting th~ generality of the fore- ' s a~in~.strative expenSes of the City relating ~?tng, insurance premmUm ~ ~] ~]w' to said Water and Se~er System or either the Water S~stem or .... ~nt c~rtifted b~ the Con- Water and Sewer system or either the Water System or Sewer System of the Water and Sewer system, and such other reasonable current expenses as shall be in accordance with sound acCOunting practice. ,operating Expenses" shall not include any allOWance for depreciation except to herein provided- the extent expressly s" shall ~ean the groSS revenUeS, aS defined I. "Net RevenUe in subsectiOn G above, remaining after deductiOn only of operating ex- penses, as defined in subsectiOn E above. j. ,,utilities Services TaxeS" shall mean taxes levied and collected on utilities services purSUant to Chapter 22829, publiC Acts of 19~, as amended- ' ' K. ,'Fiscal Year" shall mean the period beg~nlng with and including October 1st and ending with and including the next September M. AngaS and 30th'L. ,,ConstructiOn Engineer" shall mean Robert Associates, of jacksonville, Florida, or their successOrS. M. ,Consulting Engineer" shall mean Robert M. AngaS and Associates, of jacksonville, Florida, or other qualified and recognized Consulting EngineerS, who shall be hereafter retained as successors to the said Robert M. Angas and AssOciates. N. Words importing singular number shall include the plural number in each case and vice versa, and words importing persOns shall include firms and corporationS' ARTICLE II SectiOn 2.01. AuTHORI~ATI0~ AND TERMS OF cERTIFIcATES' For the purpose of financing the cost of the additions, extensions and im- provements to said Water and Sewer system provided for in this ordi- nance there is hereby authorized the issuanCe of negotiable Water and .... ~tv of sanford, Florida (herein- after called ,,Certificates"), in the aggregate principal amount of One MilliOn One Hundred Seventy- Five Thousand Dollars ($1,175'O00)' which Certificates shall be dated November l, 1953, in the denomination of $1,OOO.OO each, numbered consecutively in numerical order from i to 1,175, both inclusive, shall bear interest at not exceeding five per centum (5%) per annum, such interest being payable semi-annually on May i and November able as to both principal and interest at the prin- i in each year, pay · York New York,in lawful money cipal office of The Hanover Bank, New , ' of the United States of America; shall not be registerable, and shall mature serially in numerical order on November 1 in years and amounts as follOWS: Ye_~ar ~ ~ea~ Amount 1972 $41,000 42,000 1958 $22,000 1959 23'000 1973 1960 25'000 1974 1961 26,000 1975 1976 48,1)00 1962 27,000 50, 1963 28,000 1977 1964 29'000 1978 52,~00 1979 54~ )00 1965 30'000 57 )00 1966 32,000 1980 33,000 1981 59,000 1967 1982 61,000 1968 34,000 64,O00 36,000 1Q83 67,000 1969 37,000 1984 69,000 1970 1985 1971 39,000 The Certificates of said issue maturing in the years 1958 to 1964, both inclusive, shall not be redeemable, prior to their respec- tive stated dates of maturitY- The Certificates of said issue maturing in the years 1965 to 1985, both inclusive, shall be redeemable prior to their respective stated dates of maturitY, at the option of the City, on November 1, 1964 or on any interest payment date thereafter, in whole or in part but in inverse numerical order if less than all~ at the price of par and accrued interest to the date of redemption, plus the following premiums if redeemed in the following years: Four per centU~ of the par value thereof if redeemed in the years 196~ to 1968, both inclusive; Three oer centum of the par value thereOf if redeemed in the years 1969 to 1973, both inclusive; Two and one-half per centUm of the par value thereof if redeemed in the years 197~ to 1978' both inclusive; and Two per centum of the par value thereof if redeemed thereafter prior to maturitY' shall · n of said Certificates A notice of the prior redempt~° · d at least once at least thirty days prior to the date of of NeW york. be publBShe redemptiOn in a financial paper published in the City interest shall cease on the redemption date on any of said Certificates dul~ called for prior redemption provided paymeht of the · d for, redemption price thereof has been duly provmde sectiOn 2.02. ExEC~TI0~ OF cERTIFICATES AND cOUP0~S- said certificates shall be signed in the name of the City by its Mayor and the corporate seal of the city shallbe affixed theretO and attested b~ the City clerk. In case any one or more of the officers who shall have signed or sealed any ~ the certificates shall cease to be such officer of the City before the certificates so signed and sealed shall have been actually sold and~livered' such certificates may neverthe- leSS be sold and delivered aS herei~ provided and may be issued as if the perSOn who signed or sealed such certificates had not ceased to hold such office. Any certificates may be signed and sealed on behalf of the City by such perSOn aS at the actual time of the exeCUtion of such certificates shall hold the proper office in the city, although at the date of such Certificates such perSOn may not have held such office or may not have been so authorized. The coupons to be attached to the certificates shall be au- thenticated with the facsimile signatures of the present or any future ..... ~ City Clerk of said City, and the City ~ay adopt and use for ~ 1 have been .... ~ r~rSO~ who s~a~ Section 2.03. NEGOTIABILITY. The Certificates shall be, and have all of the qualities and incidents of, negotiable tnstr~uents under the law merchant and the Negotiable instruments Law of the State of Florida, and each successive holder, in accepting any of said Certi- ficates or the coupons a~pertatntng thereto, shall be conclusively deemed to have agreed that such Certificates shall be a~ have all of · s and incidents of negotiable instru~entS under the law the qualmtie , 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 in the manner provided hereinafter in the form of said CertificateS- Section 2.04. cERTIFICATES MUTILATED, DESTR0¥ED, 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 coupon, S, if any, so mutilated, destroyed, stolen or lost, in exchange and substitution for such ~utilated Certi- ficate, upon surrender and cancellation of such mutilated Certificate and attached couponS, if any, or in lieu of and substitutiOn for the Certificate and attached coupons, if any, destroyed, stolen or lost, and upOn the holder furnishing the City proof of his ownership thereof and satisfactory indemnity and complyin~ with such other reasonable regulations and conditions as the City may prescribe and paying such expenses as the City may incur. All Certificates and coupons so sur- rendered shall be cancelled by the Clerk and held for the accoUnt of the City. Ii' any suCh Certificate or coUpOn shall have matured or be about to mature, instead of issuing a substituted Certificate or coU- pon, the City may 9ay the same upon being inde~mified as aforesaid, ...... ~ lost. stolen or destroyed, with- · s and coupons ~ssued pursuant · e Certificate Any such duplmoat to this section shsll constitute additional oontraotursl obligations on the psrt of the City, whether or not the lost, stolon or destroyed CertificateS or coupons be at sn~T time found by anyOne~ and such du- plicate Certificates and coupOns shall be entitled to eqmal and pro- portionate benefits and rights as to lien and source an.3 security for payment from the revenues of the ~ater and Sewer System with all other Certt£icateS and coupons issued hereunder- Section 2.0~. FoI~M OF CERTIFICATES A_ND CO'opONS. The text of the CertificateS and coupOns shall be of substantially the follow- in~ tenor~ with such omtssiOnS~ insertiOnS amd ~arfationS as ma~ be · e necessary and desirable and authorized or permitted by this ordmnano or any subsequent ordinance adopted prior to the issusnee thereof: ~1~000 1~o. 0~'~ITED STATES OF A/v~ICA STATE OF FLORIDA C08~.iTY OF SEMIi~0LE CITY OF SAi~FOthD ~:~T]~ Ai~D SE's~ RE~EI~JL C~TIFIC~TE. I[~40W ALL Hm,~ BY ~HEom PRSS~s~TS that the City of oanford~ Seminole County~ ~lorm a~ for value received~ hereby promzses to pay to the bearer~ on the first day of November~ 19 , from the revenues hereinafter mentimned~ the principal sum of ONE TH0~]SAND O0LL~S with interest thereon at the rate of per centum per annum~ payable se~-annually on the first day of May and the first day of lqovember of each year~ upon the presentation a~d surrender of the annexed coupons as they severally fall due. Both principal of and interest on this Certificate are payable at the principal office of The Hanover Bank, l.~ew York~ New York~ in lawful money of the g~ited States of ~merica. The Certificates of the issue of which this Certificate is one maturing in the years 19[$ to 196~, ir~clusive~ are not redeemable prior to their stated dates of maturity. The Certificates of the issue of which this Certificate is one maturing in the years 196~ to 1985, inclusive~ are redeemable prior to their stated dates of maturity, at the option of the City~ in whole or in part but ia inverse numerical order if less than all~ on November 1~ 196~ or on any interest payment date thereafter~ at the price of par and accrued interest to the date of redemption, plus the following premiums if redeemed in the followi~g years: Four per centum of the par value thereof if redeemed in the years 196~ to 196~ 'both inclusive~ Three per centum of the par value thereof if redeemed ir~ the years 1969 to 1973, both inclusive~ Two and one-half per centum of the par value thereof if redeemed in the years 1974 to 1975~ both i~nclusive~ and Two per cer~tum of the par ~r~]ua thereof if redeemed thereafter prior to maturity~ provided, how- cation of such notice at least Once at least thirty days prior to the date of redemption in a financial paper published in the City of New York. This Certificate is one of an authorized issue of Certif. icates in the aggregate principal amount of not exceeding $1,175,000, of like date, tenor and effect, except as to number and date of ma- turity, (and interest rate), issued to finance the cost of the con- struction or acquisition of additions, extensions and improvements to the Water and Sewer System of Said City, under the authority of and in full compliance with the Constitution and Statutes of the State of Florida, including Chapter 26,210, Laws of Florida, Special Acts of 1949, as amended, and other applicable statutes, and an ordinance duly enacted by the City Commission of said City and is subject to all the terms and conditions of said ordinance. This Certificate and the coupons appertaining the~eto are payable solely from and secured by, a second lien Upon and pledge of the bet revenues derived from the operation of the Water System of the Water and Sewer System of the City of Sanford and a first lien upon and pledge of the gross revenues derived from the operation of the Sewer System of said Water and Sewer System of the City of San- ford, in the manner PrOVided in the ordinance authorizing the issue of C ertifzcates of which this Certificate is One. The lien of the holders of the issue of Certificates of which this Certificate is one on the net revenues derived by the City from the Water SYstem of said Water and Sewer System is Junior, inferior and subordinate in all respects to the lien thereon of the holders of $478,000 Series B Refunding Bonds of the City of Sanford, dated March l, 1937. It is further agreed between the City of Sanford and the holder of this Certificate that this Certificate and the obligation evidenced thereby shall not constitute a lien upon the City's Water and Sewer System, or any part thereof, or on any other property of or in the City of Sanford, but shall constitute a lien only on, the net revenues derived from the operation of the Water System of said Water and Sewer System, the gross revenues of the Sewer SyStem of said Water and Sewer System, all in the manner provided in said ordinance. The City in said ordinance has covenanted and agreed with the holders of the Certificates of this issue to fix and establish and maintain such rates and collect such fees, rentals or other charges for the services and facilities of said Water and Sewer System, and to revise the same from time to time whenever necessary, as will always provide revenues sufficient to pay, and out of said revenues shall pay, as the same shall become due, the principal of and interest on the Certificates of this issue, all reserve or sinking funds or other pay- ments provided for in said~ordinance, the necessary expenses of operat- ing and maintaining said Water and Sewer System, and all other obliga- tions payable out of the revenues of said Water and Sewer System, and that such rates, fees, rentals or other charges shall not be reduced so as to be insufficient to provide revenues for such purposes and, ad- ditionally, that the rates, faes, rentals or other charges for the services and facilities of the Sewer System of said Water and Sewer System shall not be reduced so that the gross revenues thereof, based on the preceding fiscal year's gross collections, will be less than one hundred thirty per~c~t {1~0%) of the next ensuing year,s require- ments for the payment of the principal and interest on the Certificates of this issue and any pari passu additional obligations hereafter issued, and said City has entered into certain further covenants with the holders of the Certificates of this 2Ssue for the terms of which reference is made to said ordinance. It is hereby certified and recited that all acts, conditions and things required to exist, to happen and to be Performed precedent to and in the issuance of this Certificate, exist, have happened and have been oerformed in regular and due form and time as required by the Laws and Constitution of the State of Florida applicable thereto, and that the issuance of this Certificate, and of the iSsue of Certi- ficates of which this Certificate is one, is in full compliance with all constitutional, statutory or charter limitations or provisions. This Certificate, and the coupons appertaining thereto, is and has all the qualities and incidents of, a negotiable instru~ent under the law merchant and the Negotiable Znstrmuents Law of the State of Florida, and the original holder and each successive holder of this Certificate, or of the coupons appertaining thereto, shall be conclu- sively deemed by this acceptance thereof to imve agreed that this Cer- tificate and the coupons appertaining thereto Shall be and have all the qualities and incidents of negotiable inst~ments under the law merchant and the Negotiable Instrumehts Law of the State of Florida. T.be original holder and each s · Uccesszve holder of this Certificate, and of the coupons appertaining thereto_ (a) Title to this Certificate, and to the annexed interest COUpons, may be transferred by delivery in the manner PrOvided for gotiable instruments payable to bearer in the law merchant and in the Negotia' ~ ole ~!~struments Law of the State of Florida. (b) Any Person in possession of this C · ertiflcate, of the in- terest coupons hereunto appertaining, regardless of the manner in which he shall have acquired PosseSsion, is hereby authorized to present himself as the absolute Owner hereof, and is hereby granted power to transfer absolute title hereby by delivery hereof to a bona fide PUrchaser, that is, to any one who Shall purchase the same for value (Present or antecedent) without notice of prior defenses or equities or claims of OWnership enforceable against his every prior taker or OWner of this Certificate, and of the annexed interest COUpons, Waives and renounces all of his equities and rights herein in favo~ of every Such bona fide purchaser and every Such bona fide PUrchaser shall acquire absolute title hereto and to all rights represented hereby; and (c) The City of Sanford, Florida, may treat the bearer of this C · · ertmflCate, or of the interest COUpons hereunto apPertaining, as the absolute Owner hereof for all purposes without any notice ss to the Contrary. I~ WITNESS t~[{EOF, Said City of Sanford, Sued this Certificate and h~s caused the Same to be Mayor, and the corporate Seal of said City to be affixed hereto, at- tested by its City Clerk, and has caused the interest COUpons hereto attached to be eXeCuted W~th the facsimile signature of its Mayo~ and ~ity Clerk, all as of the first day of November, being affected by Florida, has is- Signed by its CITy OF SAN~'ORD, FLORIDA ~'0 o FORM OF COUPON On the first day of ~ 19 the City of Sanford~ Florida, will pay to the bearer, at the principal office of The Hanover Bank, New York, New York, in lawful money of the United States of America, from the revenues described in the Certificate to which this coupon is attached~ the sum of dollars (~ surrender of this coupon, being six months Water and Sewer Revenue No. ) upon presentation and interest then due on its Certificate~ dated November 1, 1953o CiTY OF SAkrpORD, FLORIDA By Mayor City Clerk FORM OF VALIDATION CERTIFICATE Validated and confirmed by decree of the Circuit Court of the Ninth Judicial Circuit of Florida, in and for Seminole County, rendered on the day of , 19 Clerk of the Circuit Court of Seminole County, Florida. ('20 be inserted in Coupons maturing after callable date on callable Certificates - "unless the Certificate to which this coupon is at- tached has been previously duly called for prior redemption and pay- ment thereof duly provided for".) ARTICLE III REVENO~ES A~ AP?LICATION THEREOF Section 3.01. CERTIFZCATES NOT TO BE INDEBTEDi~ESS OF CITY OF SAi'~0RDo Neither the Certificates nor coupons appertaining thereto shall be or constitute an indebtechaess of the City of Sanford within the meaning of any constitutional, statutory or charter limita- tion of indebteSaaess, but shall be payable solely from the revenues of said Water and Sewer System and other special funds~ as herein provided, No holder or holders of any Certificate issued hereunder, or of any counon appertaining thereto, shall ever have the right to corapel the exercise of tile taxing power of the City to pay said Certificates or the interest thereon, or be entitled to payment of such principal and interest from any other funds of the City except the revenues of said Water snd Sewer System and other special funds~ as provided herein° Section 3.02o CERTIFICATES SECURED BY PLEDGE OF REVE~ES. The payment of the debt service of all the Certificates issued here- under shall be secured forthwith equally and ratably by a second lien on and pledge of the net revenues derived from the operation of the Water System of the Water and Sewer System of the City of Sanford and a first lien on and pledge of the gross revenues derived from the ooeration of the Sewer System of said Water and Sewer System. The lien on the net revenues of the Water System of said Water and Sewer System is j~mior, subordinate and inferior to the lien thereon of ~78~000 Series B Refunding Bonds of the City of Sanford, dated March 1, 1937 and said net revenues derived from the Water System of the Water and Sewer System, subject to the rights of said Outstanding Bonds of 1937 as aforesaid, and said gross reverlues derived frown Sewer Systen! of the Water and Sewer Syste.n, in. an amount sufficient to pay the principal and interest on the Certificates herein authorized, and to make the payments into Section 3.03. APPLICATION OF CERTIFICATE PROCEEDS. All moneys received from the sale of any or all of the $1,1~5~000 Certifi- cates isaued pursuant to this ordinance shall be deposited by the City of Sanford in a trust fund to be known as the "Construction Trust Fund", and shall be used and applied by the City solely to the payment of the cost of the construction or acquisition of the additions, exten- sions and improvements to said Water and Sewer System as provided in this ordinance, and for no other purpose whatsoever, Said fund shall be maintained by the City in an incorporated bank or trust company in the State of Florida which has an aggregate capital and surplus of not less than $260,000, and all moneys at any time in said Construction Trust Fund shall be continuously secured in the same manner as deposits of State and municipal funds are required to be secured by the present laws of the State of Florida. No withdrawals shall be made from said Construction Trust Fund, except for legal and engineering expenses, expenses for financial or fiscal services, and expenses in connection with the authorization and issuance of the Certificates authorized by this ordinance, except upon the certificate of Robert M. Angas and Associates, Construction Engineers, of Jacksonville, Florida, or their successors as Construction Engineers, that sucl~ withdrawals are proper and are for purposes orovided for in this ordinance. If for any rea- son such proceeds, or an~ part thereof, are not necessary for, or are not applied to~ such purposes, then, such unapp!ied ~roceeds shall be deposited by the C~ty in the ~{eserve Account i~ the Sinking Fund to be established pursuant to this ordinance and shall be used only for ourposes provided t~erein. Ail monies in said Construction T~ust Fund shall constitute a trust fmnd for such purposes and there is hereby created a lien upon such fund, until so appliem, in favor of th~ holders of the Certificates issued pursuant to this ordinance. Section 3.0~. COVENANTS OF T~ CIT~. So long as any of the Certificates shall be outstanding and unpaid, or until there shall have been set apart in the Sinking Fund~ including the Reserve Account therein~ herein established a sum sufficient to pay, when due, the en- tire principal of the Certificates remaining unpaid, together with inte- rest accrued and to accrue thereon, the City covenants with the holders Certificates issued pursuant to this ordinance of any and all of the as follows: A. i~TES. That the City will fix, establish and maintain such rates and collect such fees, rentals or other charges for the services and facilities of its Water and Sewer System, and all parts thereof, and revise the same from time to time whenever necessary, as will always provide revenues in each fiscal year at least sufficient to pay the principal of and interest maturing on the Certificates in such fiscal year, all reserve or sinking funds or other payments re- quired for such fiscal year by this ordinance, the necessary expensgs of operating and maintaining such Water and Sewer System during such fiscal year, and all other obligations and indebtedness payable out of charges for the services and facilities of the Sewer System of said Water and Sewer System shall not be reduced so that the gross reven- ues thereof, based on the preceding fiscal year's gross collections, will be less than one hundred thirty per cent (130%) of the next ensuing year's requirements for the payment of the principal of and interest on the Certificates of this issue and any pari passu addi- tional obligations hereafter issued. That the initial schedule of rates, fees, rentals or other charges for the services and facilities of said Water and Sewer System shall be as follows: WATER RATES For the first 4,0OO gallons of water used, 56 3/4~ per each one thousand gallons. For the next 6,000 gallons of water used, 35~ per each one thousand gallons or frac- tion thereof. For all over 10,O00 gallons of water used and not exceeding 50,000 gallons, 30¢ per each one thousand gallons or fraction there- of. For all over 50,000 gallons of water used and not exceeding lO0,OOO gallons, 25~ per each one thousand gallons or fraction there- of. For all over 1OO,OOO gallons of water used and not exceeding 250,000 gallons, 15~ per each one thousand gallons or fraction thereof. For all over 250,000 gallons of water used and not exceeding 500,000 gallons, l$~ per each one thousand gallons or fraction thereof. For all over 500,000 gallons of water used and not exceeding 1,O00,O00 gallons, 13¢ per each one thousand gallons or fraction thereof. For all over 1,OO0,OOO gallons of water used, 12~ per each one thousand gallons or fraction thereof. Provided that the minimum charge for water furnished shall be $2.27 per month. All the above rates on usage from 6,000 gal- ~ .^ ~ ~ ~llons Der month, inclusive, Gallons of water used per month 4,000 gallons or less 5,000 gallons or a lesser amount exceeding 4,000 gallons Sewer Charge 1.77 6,000 gallons or a lesser amount exceeding 5,000 gallons 2.03 7,000 gallons, or a lesser 2.25 amount exceeding 6,000 gallons 8,000 gallons, or a lesser amount exceeding 7,000 gallons 2.51 9,000 gallons, or a lesser 2.73 amount exceeding 8,000 gallons 10,000 gallons, or a lesser 2.94 amount exceeding 9,000 gallons Sewer service charges above shall apply to all users of the sewer and water systems, or either of them, the minimum rate per month being $1.65. Maximum charge to a single residence shall be $2.94 per month. For every usage other than single residence when consumption of water is in excess of lO,O00 gallons per month, the monthly rate shall be 68% of the water billing for the given month, subject to such adjustment for particular commer- cial usages as may be set out in subsequent ordinance prescribing detailed sewer rates. Special provision and appropriate sewer charge shall he made in any case in which a user of the sewer system obtains water from a source other than the city water sys- tem. Charges for water services and facilities, and charges for sewer services and facilities, shall be rendered to the users of the system, or either part thereof (except users of the water system to whom sewer services are not available as hereinafter provided) on one bill, provided that said charges may be listed separately thereon, and provided further, that no user of the water services and facilities Theft the City has adopted and put into effect or will adopt and put into effect such initial schedule of rates, fees, rentals or other charges forthwith upon the sdoption of this ordinance. Thet whenever necessary to comply with the first paragraph of this subsection (A), and to the full e%tent necessary therefor, the City will increase the rates, fees, rentals or other charges contained in said initial schedule, or in any subsequent schedule. That neither said initial schedule of rates, fees, rentals or other charges, nor any subsequent schedule of rates, fees, rentals or other charges shall ever at any time be reduced unless na nt s ment s, fully made all ot~er ~a~nents end (2) schedule of rates, (1) The City shall not be in default under any of the cove- tn .... ordinance, a.~ ~1 of the pay- and provisions contained in ~ '~ - incl..~a~.ne~ any deficiencies for any ~rior ~ayments, have been Consulting Engineer shall certif~ that the reduced fees, rentals or other charges proposed to be put iz~to effect will provide revenues in each fiscal year thereafter suf- ficient to comply fully with the provisions of the first paragraph of this subsection Bo WATER AND SEWER REVENUE FUND. That all gross revenues derived from the operation of the Water and Sewer System or any part thereof, shall be deposited in a trust fund in a bank or trust companN in the State of Florida, having sn aggregate capital and sur?lus of at least ~260,000, which fund is hereby created end desfgnated as the "Water and Sewer Revenue Fund". Said Water end Sewer Revenue Fund shall constitute a trust fund for the purposes provided in this ordi- nance and shall be kept separate and distinct from all other funds of into the Sinking Fund and the Reserve Account therein, and required by this ordinance have been fully made; Co OPERATION A~ ~II~ENANCE. That it will maintain in good condition said Water and Sewer System and will operate the same in an efficient and economical manner, making such expenditures for equipment and for renewal, repair and replacement as may be proper for the economical operation and maintenance thereof from the Water and Sewer Revenue Fund in the manner provided herein. D. DISPOSITION OF REVENGES. That all revenues at any time remaining on deposit in the Water and Sewer Revenue Fund shall be dis- posed of only in the following manner and order of priority: (1) Revenues derived from the operation of the Water System of the Water and Sewer Syste~n shall first be used for the pa~n~nt of the cost of the operation and maintenance of the Water System of said Water and Sewer System. (2} Revenues derived from the operation of the Water System of the Water and Sewer System shall next be used ~or the payment of the inter£~st on, and Sinking Fund requirements for, the ~478,000 S~ries B Refunding Bonds, dated March 1, 1937 as provided in R~solution No. 499 of the City of Sanford, Florida, adopted on February 1, 1937. (3~ F~om all the revenues remaining on d~pos~t in the Water and Sewer Fund the Cit~ shall next, not later than the fifteenth day of each month, beginning with the fifteenth day of the month i~ediately following the issuance of any Certificates pursuant to this ordinance, apportion and set apart out of th~ Water and Sewer Revenue Fund and deposit in a fund to be ~own as "Water and Sewer Revenue 19~3 Sinking Fund", which fund is hereby created, such suar~s as will be sufficient to pay one-sixth of all interest maturing on the Certi£iestes on the next semi-annual interest payment date, provided, that moneys in the Construction Trust Fund may be used to pay the interest -maturing on said C~rtificates on May 1, 19~4 and November 1, 19~4, and beginning with November 1. lg~7. s~¼ ~m~ ~ ~]1 ~ .... ~g~_~ The City shall also, from the Water and Sewer Revenue Fund, deposit in a Reserve Account in said 1953 Sinking Fund, the following amounts at the following times: $20,000 on or before September 30, 195~; $20,000 on or before September 30, 1955; $20,000 on or before September 30, 1956; $20,000 on or before September 30, 1957. No further payments shall be required to be made into said Reserve Account when there shall have been deposited therein, and as long as there shall remain therein, not less than the aggregate principal amount of eighty thousand dollars ($80,000). 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 1953 Sinking Fund are insuf- ficient therefor, and for no other purpose. In the event any withdrawals are made from said Reserve Ac- count, such withdrawals shall be restored to said Reserve Account from the first revenues which are available after all required payments for the $~78,000 Series B, Refunding Bonds, and for debt service and Re- serves on the Certificates issued hereunder, have been made. The City shall not be required to make any further payments into said 1953 Sinking Fund or into the Reserve Account in said 1953 Sinking Fund when the aggregate amount of funds in both said 1953 Sinking Fund and said Reserve Account are at least equal to the aggre- gate principal amount of Certificates issued pursuant to this ordinance then outstanding, plus the amount of interest then due or thereafter to become due on said Certificates then outstanding. In the event of the issuance of pari passu additional certifi- cates, as hereinafter provided, payments into the Reserve Account shall be increased in the same proportion as the payments set forth above bear to the original issue of C~rtif~natm~ h.~n :~,~h~N (5) Thereafter, revenues shall be used to establish and set up a Renewel and ~eplacement Fund, which is hereby created, and the City shal~ pay into said fund from the Water and Sewer Revenue Fund, on the fifteenth day of each month, beginning October 15, 1955, an five per eentum of amount which shall be equal to one-twelfth of^the gross water sales during the preceding fiscal year and one-twelfth of five per centum of the gross sewer revenues actually received and collected during the shall be used only for the purpose of paying the cost of extensions, improvements or ddltlons to, or the replacement of capital assets of said Water and Sewer System; provided, however, that upon the certi- ficate of the Oonsultmng E~gineer to the e~ ~o* *~ ~ ~o.~ ~ne moneys in said fund in excess of the sum of ~100,000 are not needed for the poses stated above, then such moneys may be used for the purchase or redemption of the Certificates issued pursuant to this ordinance, of the last maturity then outstanding. ~6) If on any payment date the revenues are insufficient to place the equlred amounts in any of the funds as n reznbefore pro- r vided, the deficiency shall be made up on the subsequent payments in addition to the ?ayments which would otherwise be required to be made into the Funds on the subsequent payment dates. (7) Thereafter, the b~lance of any revenues remaining after all other required payments into the lands provided above and required by the prow[sions of said resolution No. 499, adopted February l, 1937 have been made, s[ball be used by the City to finance the cost of re- habilitating, reconstructing or improving the Water and Sewer System, or the acquiring and installing of quzpment or apparatus or of acquir- ing any property, rights in land and easements deemed by the City to be necessary, useful or convenient for the purposes of this ordinance. Thereafter, funds in an amc,or =~a ...... ~ .... :..~ Any revenues remaining in the Water and Sewer Revenue Fund and not required for any of the above mentioned purposes shall be used for purchase or redemption of outstanding Certificates, or if there he such revenues remaining at any time prior to November l, 1965, same shall be used for purchase and cancellation of Certificates or deposited in the Reserve Account until Certificates hereunder are available for redemption. (8) The Water and Sewer Revenue Fund, the 1953 Sinking Fund and the Reserve Account therein, the Renewal and Replacement Fund, and all other funds set up and created by this ordinance shall constitute trust funds for the purposes provided herein for such funds. All of such funds shall he continuously secured in the same manner as state and municipal deposits of funds are required to be secured by the Laws of the State of Florida. Said 1953 Sinking Fund, and the Reserve Account therein, and said Renewal and Replacement Fund shall be continuously maintained with a hank or trust company which has a combined capital and surplus aggregating at least $260,000. E. SALE OF T~E WATER AND S~ER SYSTEM. That the Water and Sewer System may be sold, mortgaged, leased or otherwise disposed of only as a whole or substantially as a whole, and only if the net pro- ceeds to be realized shall be sufficient fully to retire all of the Certificates issued pursuant to this ordinance and all interest thereon to their respective date of maturity or prior redemption and all other obligations payable from the revenues of said Water and Sewer System, or any part thereof. The proceeds from such sale, mortgage, lease or other disposition of such Water and Sewer System shall immediately be deposited in the 1953 Sinking Fund and shall be used only for the pur- pose of paying the principal of and interest on the Certificates is- sued pursuant to this ordinance as the same shall become due, and all other obligations payable from the revenues of said Water and Sewer System, or the prior redemption of such Certificat~ ~ ~.~ ^~ The foregoing provisio~i notwithstanding, the City s~all have end hereby reserves the right to sell, lease or otherwise dispose of any of the N}roperty comprising a Part of said Water and Sewer System hereafter determined to be no longer necessary., useful or profitable in the operatioh thereof° The proceeds from anp such sale or other disposition, shall be deposited in this Renewal and [~eplacement Fund and used only as erovided herein for such fund. P. ISSUANCE OF OT~R OBLIGATIONS PAYABLe OUT OF ~SV~lfUES. That the City will not issue any other obligations, except under the conditions and in the manner provided herein, payable from the revenues derived from the operation of said Water and Sewer System, nor volun- tarily create or cause to be created any' debt~ lien, pledge, assign- ment, encumbrance or any other charge, having priority to or being on a parity with the lien of the Certificates issued pursuant to this ordinance and the interest thereon, mpon any of the income and revenues of said Water and Sewer System pledged as security therefor in this ordinance. Any other obligations issued by the City in addition to the Certificates authorized by this ordinance and !~ari passu additional Certificates authorized by this ordinance, shall contain an express state,sent that such obligations are junior and subordinate, as to lien end source and security for payment from the revem~es of the Water and Sewer System, and in all other respects, to Certificates issued pursuant to this ordinance, and !:~ari passu additional Certificates, issued under the terms, restrictions and conditions contained in this ordinanc~ G. INSU[~NCE. That the City will carry such insurance, and in such amounts, as is ordinarily carried by private Corporations own- ing and operating similar utilities as the utility co~rising the City's Water and Sewer System, with a reputable insurance carrier or carriers against loss or damage by fire. e×m~ ~ .... ~. against loss or damage by the risks and hazards of War. The City shall also carry adequate liability insurance for damages or injuries to persons or property. H. BOOKS AND ~CORDS. That the City will keep Separate books and records of the Water System of the Water and Sewer System and of the Sewer System of the Water and Sewer System, which shall be Separate and apart from all other books, records and accounts of the City, in which complete and correct entries shall be made of all trans- actions relating to each of said systems of the Water and Sewer System, and any holder of a Certificate or Certificates issued pursuant to this ordinance shall hsve the right at all reasonable times to inspect the Water and Sewer System and all p~'ts thereof and all records, ac- counts and data of the City relating thereto, and will at least once every six months mail a ~'eport of transactions rela~ing to said Water and Sewer System to any holders of Certificates requesting the same, and file co~ies thereof with the original purchasers of the Certifi- cates, and the Paying Agent of the Certificates. The City shall, at least once a year, cause the books, cords and accounts of the Water Sy~tem and Sewer System of said Water and Sewer Syste~l to be properly audited by a qualified and recognized firm of certified public accountants, and shall mail, upon request, and make available generally, the report of said qualified and recog- nized firm of certified public accountants at all reasonable times to any holder or holders of Certificates iSSued pu~s~ant to this ordi- nance, and shall file such reports with the original purchasers of the Certificates, and the Paying Agent of the Certificates. Each such Audit, in addition to w~atever matters may be deemed P~oper by the ac- countant to be incl~ded therein, shall include the following: (1) A statement in detail of the income a~d expenditures of the Water System and the Sewer Svsb~m ~e tion of the Water and Sewer System; (~) A list of the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount thereof, the risks covered, the name of the insurer and the expiration date of the policy; (5) The number of metered water customers, the number of unmetered water customers and the number of properties and customers connected with the sewer system at the end of such fiscal year. I. ~4AI~TE~ANCE OF WATER AND SEWER SYSTE~. That the City will complete the construction and acquisition of the additions, ex- tensions and improvements to said Water and Sewer System provided for in this ordinance in an economical and efficient manner with all prac- ticable dispatch, and thereafter will maintain said Water and Sewer System in good condition and continuously operate the same in an effi- cient manner and at a reasonable cost. J. SERVICES RENDERED TO THE CITY OF SANFORD. That the City of Sanford will not render or cause to be rendered any free services of any nature by its Water and Sewer System, or any part thereof, nor will any preferential rates be established for users of the same class; and in the event the City of Sanford or any department, agency, instru- mentality, officer or employee thereof, shall avail itself of the facilities or services provided by said Water and Sewer System, or any part thereof, the same rates,, fees or charges applicable to other cus- tomers receiving like services under similar circumstances shall be charged the City, and any such department, agency, instrumentality, officer or employee. Such charges shall be paid as they accrue, and the City shall transfer from its general funds sufficient sums to pay such charges. The revenues so received shall be deemed to be revenues derived from the operation of the Water and Sewer System, and shall be deposited and accounted for in the same manner as other revenues derived K. ANNI~L BUDGETS. That the City shall annually, at least forty-five 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 Water and Sewer Sys- tem during such succeeding fiscal year, which budgeb shall nob be so adopted until approved by the Consulting Engineer. No expenditures for the operation and maintenance of the Water and Sewer System shall be made in shy fiscal year in excess of the amounts provided therefor Jn such budget without a written finding and recommendation by the general manager of such Water and Sewer 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 expen- ditures for the operation and raaintenance of the Water and Sewer System, and no such increased expenditures shall be made until the governing body of said City shall have approve~ such finding, and recommendation by a resolution duly adopteD. No increased expendibures in excess of ten per cent~m of the amounts provided for in such budget shall be made without the further certificate of the Consulting Engineer thab such increased expenditures are necessary for thc continued operation and maintenance of said Water and Sewer System. The City shall raail copies of such annual budget and ell resolutions authorizing increased expenditures for operation and maintenance to any holder or holders of Certificates who shall file his or their address with the City and quest in writing that copies of all such budgets and resolutions be furnished him or them, and shall make available such budgets ahd all resolutions authorizing increased expenditures for operation and main- tenance of the Water and Sewer System at all reasonable times to any holder or holders of Certificates issmed Oursuant to this ordinance, and shall file copies of same with the original purchasers of the Cer- tificates, and the Payin~ A~ent ~ a~ ~ L. ISSUANCE OF PARI PASSU ADDITIONAL CERTIFICATES. That no pari passu additional Certificates, as in this sub-section defined, payable out of the Water and Sewer Revenue Fund, shall be created after the issuance of any Certificates pursuant %o this ordinance ex- cept under the conditions and in the manner herein provided. No such pari passu additional Certificates shall be issued unless the average of the annual net revenues derived from the Water System of the Water and Sewer System and gross revenues of the Sewer System of the Water and Sewer System, together with the amount of utili- ties services taxes received by the City and pledged to the Certifi- cates, if any such pledge of utilities services taxes shall have been theretofore legally made for outstanding Certificates and is legally available to pledge to the pari passu additional Certificates ~hen pro- posed to be issued, during the two complete, preceding fiscal years, shall have been not less ~han 150% of the largest aggregate amount of principal and interest which will mature and become due in any succeed- ing year on the Certificates then outstanding any pari passu Certifi- cates theretofore issued and then outstanding, and the pari passu Cer- tificates then proposed to be issued; provided, however, that should the City deem it essential to issue pari passu additional Certificates at any time during the period ending December l, 1955, then upon cer- tification of the Consulting Engineer stating the necessity therefore and estimate of anticipated sewer revenues, pari passu additional Cer- tificates may be issued on a parity with the certificates in amount of $1,175,000 herein authorized at any time during such period end- ing December l, 1955, in which case the Certificates herein author- ized, any pari passu additional Certificates theretofore issued and then outstanding, and the pari passu additional Certificates then proposed to be issued, shall all be addi%ionally secured by a pledge of utilities services taxes received by ~he City and then legally avail- able for such pledge in an amount sufficient ~ ~o+ ~_ ~_ with any pari passu additional Certificates theretofore issued and then outstanding, and the Certificates then proposed to be issued, be- c°ming due in any succeeding year, will be Covered two and one-half (2 1/2) times. The term "pa~passu additional Certificates,,, as Used in this sub-section, shall be deemed to meah additional Certificates is- SUed under the Provisions and within the limitations of this sub-sec_ tion, payable from the Water and Sewer Revenue Fund pari passu With CertiFicates Originally authorized and issued pursuant to this ordinance, and all of the covenants and other provisions of this ordinance lex- cept as to details of such pari passu additional CertifiCates inconsls. tent therewith) Shall be for the equal benefit, protection and security of the holders of any Certificates Originally authorized and iSSued Pursuant to this ordinance and the holders of any pari passu additional CertiFicates subsequently Created within the limitations of and in Compliance with this subsection. All of such Certificates, regardless of the time or times of their issuance, Shall rank equally with respect to their lien on the revenues of said Water and Sewer System, and their sOUrce and Security For payment from said revenues, Without pre- ference of any Certificate, or COupon, over any Other. The City Shall comply Fully With all the increased payments into the various funds Created in this ordinance required for such pari passu additional Certificates, in addition to the payment ~equired for CertiFicates Originally issued pUrsuant to this ordinance. All pari passu additional CertifiCates iSSued PUrsuant to this subsection shall be dated May I or NOVember l~nall all mature on November 1 of each year oF maturity, and the semi-annual interest on any oF said pari passu additional Certificates Shall be payable on May I and NOVember 1 of each year. The term "pari passu additional Certificates,,, as used in this SUBsection, Shall not Be deemed to include bonds, notes, certifi_ cares or other obligations SUbsequently iSSued, the lien of which on the revenues of the Water and Sewer Syste~, or any part thereof, is subject to the Prior and SUperior lien on SUch revenues of Certifi. cates issued pursuant to this ordinance, and the City Shall not issue any obligations whatsoever payable from the revenues of the Water and Sewer Syste~, or any pa~t thereof, which rank equally as to lien and source and security for payment from Such revenues With Certificates issued PUrSuant to this ordinance, except in the manner and Under the Conditions provided in this Subsection. No Pari passu additional CertifiCates, as in this subsection defined shall Be Created at any time, however, unless all of the pay- ments into the respective Funds Provided for in this ordinance on CertifiCates then outstanding, and all other reserve or sinking funds, or other payments PrOvided for in this ordinance and said resolution adopted February l, 1937, shall have been made in full in the amounts required to the date of issuance of SUch pari passu additional Certi- fiCates, and the City Shall have fully complied With all the cove. nants, agreements and terms of this ordinance and said resolution adopted February l, 1937. appertaining thereto, issued under the provisions or any Trustee acting for such Certificate olders inafter provided, may, either at law or in equity, m~ndamus or t~er proceeding in any court of co~apetent -~ · . J~rlsdictlon, protect and enforce any and all rights under the laws of the State of Florida, or granted and contained in this ordinance, and may enforce and COmpel the Performance of all duties required by this ordinance or by any applicable statutes to be perfo~ued by the City or by any offi- cer thereof, including the fixing, charging and collecting of rates, fees, and charges for the services and facilities of sa~d Wate~ and Sewer System. ~ RE~ED~S. Any holder of Certificates, or of any COUpons of this ordinance, in the manner here- by suit, action, Zn the event that default shall be made in the payment of the principal of or interest on any of the Certificates issued PUrSuant to this ordinance as the same shall become due, or ~n the ~aking of the payments into any reserve or sinking fund, or any other payments required to be made by this ordinance, or in the e~ent that the City or any officer, agent or employee thereof Shall fail or refuse to Com- ply with the provisions of this ordinance, or shall default in any covenant made hemein, and in the further event that any Such default shall continue for a period of thirty days, any holder of such Certi- ficates, or any TrUStee appointed '4o mepresent ~. . ~ertifzcate holders as hereinafter provided, shall be entitled as of right to the appointment of a receiver of the Water and Sewer S~stem, in any Court of competent Jurisdicti ~ s · ~ ~o~o Said receiver Shall have no power to sell or mortgage aim Water and Sewer System, but shall operate the sa;~ie under the JU~lsdzctzon of the court ia the name of the City and for the joint benefit and protection of the City and the Certificate holders. Such receiver Shall apply the revenues of the Water and Sewer S~stem in the manner provided in this ordi~ence. ~,~ The holder, or holders of Certificates in an aggregate prin- cipal amotuat of not less than twenty-five per centttm of Certificates issued pu~susnt to this ordinance then outstanding may by a duly eke- Outed certificate in writing appoint a trustee for botders of Certifi- cates issued pursuant to this ordinance, with authority to represent such Certificate holders in any legal proceedings for the enforcement and protection of the rights of Certificate holders. Such Certificate shall be executed by such Certificate holders or their duly' authorized attorneys or representatives, end shall be filed in the office of the City C_erk. N. E~ORCEMENT OF COLLECTZOM. That the City will diligently e~orce and collect all fees, rates or othe~ charges for the services and facilities of the Water and Sewer S~ste~n, and take all steps~ ac- tions and Proceedings for the enforce~uent and collection of such fees~ rates and other char~es which shell become delinquent to the extent permfftted or authorized by the charter of the said City and the appli- cable laws of the State of Florida. ~he City specifically COvenants able regulations to be hereafter adopted, that it will, unde~ reason- discontinue and shut off the sup!~lying of all Water and sewer Services and facilities, to any users of said Water and Sewer System, or any ot~rt thereof, who shall fail to pay the fees, rentals or other charges for water or Sewer Services, within a period of thirty days from the due dates thereof; and that in the event of the shutting off of water and Sewer services and faci- lities for the non payment of such charges, it will net restore or Sume the supplying of Water and sewer services and facilities to such delinquent users until ell chsrges then due shell have been fully paid, including reasonable penalties and interest and other nroper charges in com~ection with such delinquencies, and .orooer chsrges for restor- ation of the sup01ying of weha~ ~ O. CONSULTING ENGINEER. That Robert M. Angas and Associ- ates, consulting engineers, of Jacksonville, Florida, or other quali- fied and recognized consulting engineers shall be retained on a reason- able basis by the City, after the completion of the construction and ac- quisition of the additions, extensions and improvements authorized by this ordinance, on an annual basis, to generally supervise the opera- tion, maintenance and renewal and replacement of said Water and Sewer System, to make an annual, practical inspection of said Water and Sew- er System, to approve all annual budgets, and generally to make recommend- ations concerning said Water and Sewer System, and the rates for water and sewer services and facilities. Such consulting engineers shall make an annual report concerning the conditions of said Water and Sewer Sys- tem, which report shall be mailed to any holder of Certificates re- questing the same, to the original purchaser of the Certificates, and the paying agent of the Certificates. P. NO COMPETING SYSTEM. That the City will not grant any franchise, license or permit, or cause or permit the granting of any franchise, license or permit, to any firm, corporation, agency or body, public or private, or any person whatsoever, for the supplying of water or sewer services and facilities within the corporate limits of the City. Q. INVESTMENT OF FUNDS. Monies in the Water and Sewer Revenue Fund and in the 1953 Sinking Fund {except the Reserve Account therein} shall not be invested at any time. Monies in the Construc- tion Trust Fund may be invested in direct obligations of the United States maturing not later than 12 months after their purchase. Mon- ies in the Renewal and Replacement Fund may be invested in direct obligations of the United States maturing not later than 36 months after their purchase. Monies in the Reserve Account in the Sinking Fund may be invested in direct obligations of the United States matur- R. P~FUi{DIMG CEitT!PICATES. If prior to the payment of the Certificates herein authorized it shall be found desirable to refund said CertifJcates~ then said Certificates herein authorized, or any part thereof, may be refunded with the consent of the holders thereof (unless the Certificates so refunded have matured or are callable for redemntion and have been properly called for redemption in which case such consent shall not be necessary}, and the refunding Certificates so issued shall enjoy comolete equality of lien with the portion, if sny, of the Certificates issued ~ereunder which is not ref~lded; pro- v~ded, however, that if only a portion of the Certificates issued here- under is so refunded sad if such Certificates are refunded in such manner that the interest rate of the refunded Certificates is incPeased or if the refunding Certificates luature at different dates than the maturity dates of the Certificates being refunded {unless all the re- funding Certificates mature after the maturity date of any Certificates not reftanded}, then such Certificates may not be refunded without the consent of the holders of the Unrefunded portion of the Certificates issued hereunder. S. CONX~C~'IONS WZT~ S~EI~ SYSTJ~.M. The City of Sanford w~ll, to the e~tent pen~itted by the laws of the State of Florida, requiee, and take all steps, actions and oroceedings necessary to enforce, the Connection with the Sewer System of sa:id Water and Sewer System of all occupied premises located within 200 feet of a sanitary Sewe~ A~T I CLE IV i~ESC~LLANEOUS Section ~.~.01. iI~DIPICAII0~ OR A~DiE~!T. No mater~at modi- fication or amend~ent of tnzo ondin~uce or of ~ny ordznance .... ~ene. a~ or~> hereof op suppleu~ental NePeto~,~ ~y be made without the h~ent in writ- in~6 of the holders of two-thfrds or ~ore in the ori~lcinal o.~iou t of amount of the princ~ a -P 1 obligat. · J zen thereof or ~ af~ ec ~lng the tlonal promise of the City to ?ay the Principal of and ~nterest on the Certl · fmcates as the Same Shall COme dee from the ?eVenues of the Wate~ and Se~em S~stes~, or Peduce the Percentage of Certificate holders quired to COnsent to any material modification or amendment of this oz'dinance, Without the COnsent of the holder or holders of Such Certi. ficates. SeCtion [~-.02. SE~Ei~BILiTy OF I}~ALZD Pi~OVZSIO[~,f. If any One or more of the COvenants, agree~nents oz- provisions of this ordinance ab.all be held contrary to any eXoress provision oP law or contrapy to the POlicy of express law, though not expressly PPohibiSed, or against Public policy-, or Shall for any reason whatsoever be held imva~id~ then Such COVenants, agreements om Pro~islons shall be null and Void and Shall be deemed Separable f~om the remaining covena~ts, agreem.::nts or Provisions, and Shall in no way affect the validity of any of the Other e . -,rovmsions of this oz, d~nance or of the Certificates or COupons issued hereunder. SeCtion ~.03' VALi[DATI0~ ~:.~ ., A. Edwin Sbinholser ~°~iz~s. That , ]~sqUire, Attorney for ~he City of Sanford, be and he is hereby authorized and directed to Pr'ePare and file ~rOCeedings to validate the Certificates a~thorized by this nance in the manner P~OVided by law. Section ~.0~. TI[~ OF T ' ~ AKI~ EFFECT. That it is necessary for the i~mediate P~esePvation of Property, health and Safet~ of the City of SSnford, and its inhabitants, that the COnstruCtioi, - or acqul_ sition of the additions, extensions and improvements to Said ~atem and Sewer System herein PrOVided for be made With the least o -', P SS~ole delay end this orm~.nance is hereby declared to be an emergency measuPe and Shall take effect i~m~ediatety Upon its enactme~t. 19~3. PASSED AND ADOPTED this~14~ _day of__~_~~, ATTEST: · ~_~,~, .... I, H. N. Sayer, C~ty Clerk of the C~ty of Sanford, Florida, hereby cert~'fy that a true and correct copy of the fore~!fo~ng Orddnance No. 532 of the C~ty of Sanford, Flor~ ~a, passed amd adopted by ~he C~ty COmm~ss2on of the C.'ty of Sanford, Florida, on the 14th d~y of December, 1753, was POSTED at the front door of the C.'ty Hall ~n the C;ty of Sanford, Flor.!da, on the 22nd day of December, 1753' I~ ~,~ITNESS ~,~HF~'~OF, I have hereunto set my hsmd and the off-~c~_al seal of the C~ty of Samford, Flor_~da, this 22nd day of December, 1953. - ~f_~ ~n~'ord, Flor, da