012027-Special MeetingCITY COMMISSION, SANFORD. FLORIDA,
MINUTES
Special ~eeting
January 20, 1927
19.__
After due notice in writing to each ~nd every member of the City Commission of the
City of Sanford, Florida, a special call meeting of the City Commission of the City of
San£ord, Florida was held at the City Hall at Sanford Florida at Two O'Clock
Present: Commissioners, Forrest Lake, $ 0 Chase and E F Housholder.
City Attorney, George A DeCottes and City Clerk L R Philips.
City Attorney DeCottes addressed the meeting and made a report of his conference
with Arthur F Perry, President of Florida National Bank of Jacksonville, at Jacksonville
Florida, with reference to a proposed loan to be made by Florida National Bank of Jacksonvil~
to HUTTON CONSTRUCTION CO~ANY in the sum of $100,O00.O0 said loan to be collaterally secured
by certain vouchers of the Bond Trustees of the City of Sanford, Florida to HUTTON CON-
STRUCTION CO~PANY as evidence of indebtedness to HUTTON CONSTRUCTION CONPANY for work done
by HUTTON CONSTRUCTION CO~ANY under contracts of paving awarded HUTTON CONSTRUCTION CONPANY
under authority of paving resolutions Nos. 84,88,89,101, 103, 104, 105, 106, lO?, ll9 , 120
13~, 135, 251, 25?, 258, 262, 263, 264, 265, 266, 26?, 268, 269, 271, 28?, 317, 323, 324
325, 32?, 328, and 329 and submitted a draft of the contract to be entered into between the
CITY OF SANFORD FLORIDA and FORREST LAKE, S 0 CHASE and E F HOUSHOLDER, as the City Com-
mission of the City of Sanford, Florida, and as ex officio bond Trustess of the City
San£ord Florida, parties of the first part and FLORIDA NATIONAL BANK of JACKSONVILLE
Party of the Second Part, the draft of said contract being in words and figures as follows,
to-wit:
"THIS INDENTURE made and entered into on this the 2Otb day of January A.D.192?, by
and between the CITY OF SANFORD, FLORIDA, a Nunicipal Corporation organized and existing
under the laws of the State of Florida, and FOP~EST LAKE , $.O.CHASE , and E F HOUSHOLDER
as and constituting the City Co~missio~ of the City ~f Sanford, Florida , and as ex officio
bond trustees of the City of Sanford, Florida, parties of the first part and ~LORIDA NATIONAL
BANK of JACESO~ILLE, a banking corporation, authorized by an Act of Congress, having its
principal place of business in the City of Jacksonville, County of Duval, and State of Florida
party of the Second Part,
WITNESSETH, that, Whereas, certain street paving Contracts have been awarded to
HUTTON CONSTRUCTION CO~PANY, by the City of Sanford, Florida, under the authority of paving
Resolutions Nos. 84,88,89, lO1 , 103, 104, 105, 106, lO?, ll9, 120, 13~, 135, 251, 25?,
258, 262, 263, 264, 265, 266, 26?, 268, 269, 271, 28?, 31?, 323, 324, 325, 32?, 328, and
329, and
WHEREAS, since the award of said paving contracts HUTTON CONSTRUCTION CONPANY, has
partially performed said contracts and has completed certain street paving work to the entire
satisfaction of the engineering department of the City of Sanford, Florida, for which com-
pleted work estimates have been rendered by the engineering department to HUTTON CONSTRUCTIO~
CO~PA~ and to the City of Sanford, Fl~rdia, showing the amount due and payable by the City
of Sanford, Florida to HUTTON CONSTRUCTION CONP~NY for said completed work, less the required
retained percentage to be with-held by the City of Sanford, Florida, until the paving con-
tracts awarded HUTTON CONSTRUCTION CONPANY Have been fully completed and all paving authorized
under the resolutions s~foresaid have been laid and constructed, and
CITY COMMISSION, SANFORD, FLORIDA,~
MINUTES
Jan 20, 1927
19
WHEREAS, based on the estimates so furnished from time to time by the engineering
department of the City of Sanford, Florida certain vouchers have been issued unto
HUTTON CONSTRUCTION COMPANY by the Bond Trustees of the City of Sanford Florida evidencing
the indebtedness of the City of Sanford, Florida, to HUTTON CONSTRUCTION CO~ANY, for said
paving so completed by it and accepted by the engineering department of the City of Sanford
Florida and by the City of
HUTTON CONSTRUCTION CO~[PANY
Voucher Number
3772
3862
3860
and
Sanford, Florida, said Vouchers so
being as follows, to-wit:
Date
issued and delivered unto
December 13, 1926
January lO, 1927
January lO, 1927
January lO, 1927
Amount
5 ;3o2
O,l~f~,[~l
WHEREAS, the bond trustees of the City of Sanford, Florida, at the moment have no
funds available for the payment of the vouchers above mn~erated, issued and delivered by
the Bond Trustess o£ the City of Sanford, Florida, as aforesaid, unto HUTTON CONSTRUCTION
COMPANY, and
WHEREAS, the estimated cost of the street paving improvement to be specially assessed
against privately owned property, contracted to HUTTON CONSTRUCTION CO~.~ANY under and by
authority of the paving resolutions aforesaid amounts to the sum of $7OO,481.39, and
WHEREAS, The City City Attorney of the City of Sanford, Florida under and by authority
of the provisions of the Charter of the City of Sanford, Florida, same being Chapter 9897,
Laws o£ Florida, 1923, and also under and by authority of Chapter 9298, Laws of Florida, 1923
entitled:
"AN ACT providing a supplemental , additional and alternative method of making loca~
improvements in cities , Towns and municipal corporations, authorizing and providing for
Special Assessments for the cost thereof, and authorizing the issuance and sale of bonds
of such municipalities in connection with said local improvements, said bonds to be General
Obligations of the M~nicipalities;,,
has been instructed, directed and authorized to proceed with the least possible delay to
issue and offer for sale street improvement bonds of the City of San£ord, Florida, to an
amount equal to seventy per cent of the estimated cost of the street improvements authorized
under the paving resolutions aforesaid; and
WHEREAS, said street improvement bonds, under the authority of law aforesaid,
may be issued under authority of a resolution adopted by the governing authority of the Cit~
of Sanfford, Florida, without submission of the question of the issuance of said bonds to
the qualified electors of the City off Sanford, Florida, and
WHEREAS, the amount of said street improvement bonds to be issued by the City of
Sanford Florida, is the sum of $490,O00.O0 and,
WHEREAS, the City Attorney o£ the City of Sanford, Florida is now engaged in the
legal procedure incidental to the authorization, issuance and sale of the said negotiable
securities o£ the City of San£ord, Florida, to the amount of $4~O,000.OO to be evidenced
by four hundred and ninety bonds of the denomination of $1000.00 each, bearing interest at the
rate of Five and One half per centum per annum, interest payable semi-annually on January
1st, and July 1st, o£ each year, said bonds to be retired savt~llv ~t tb~ ~ ~ ~.+..
CITY COMMISSION, SANFORD. FLORIDA.
MINUTES
WHEREAS, said issue of bonds in the sum of $490,0OO.00 will be advertised for sale on
the 3rd. day of ~arch A.D.1927, and
WHEREAS, in the meantime it will be necessary for the City of Sanford, Florid~
to co-operate with and assist HUTTON CONSTRUCTION COMPANY , in temporarily financing its
business operations, and,
WHEREAS, FLORIDA N[~IONAL BANK OF JACKSONVILLE has agreed to advance unto HUTTON
CONSTRUCTION CONPANY the sum of $100,000.00 said advance to be evidenced by the promissory
note of HUTTON CONSTRUCTION CO[~ANY, payable to FLORIDA NATIONAL BANK of JACKSONVILL~
to become due and payable on April 1st 1927, with interest at the rate of per centum
per annum until paid, the said HUTTON CONSTRUCTION COMPANY to pledge with FLORIDA N~TIONAL
BANK OF JACKSONVILLE, as col±~teral security for the payment of the said advance of $100,000.00
evidenced by said promissory note, the vouchers heretofore issued unto HUTTON CONSTRUCTION
CONPANY by the Bond Trustees of the City of Sanford, Florida, hereinabove enumerated and
particularly described, and
WHEREAS, FLORIDA NATIONAL BANK OF JACKSONVILLE, dema~uds and requires some definite
assurance as to when said vouchers to be so accepted by it as collateral security for the
faithful discharge O~ the obligation of HUTTON CONSTRUCTION COMPANY, will be paid by the
Bond Trustees of the City of Sanford Florida, now therefore,
THIS INDENTURE WITNESSETH, that the parties hereto, for and in consideration of
the premises as set forth in the preamble hereof and for and in consideration of the sum
of One Dollar each to the other in hand paid, mutually covenant and agree to and with each
other as follows, to-wit:
1. That the party of the second part shall advance unto HUTTON CONSTRUCTION CO[~ANY
the sum of One Hundred Thousand ($100,O00.00) Dollars, to be evidenced by the promissory note
of HUTTON CONSTRUCTION COMPANY payable April 1st, 1927, with interest at the rate of
per centum per annum until paid, provided said note is collaterally secured by the hypotheca-
tion of the following vouchers of the Bond Trustees of the City of Sanford Florida, heretofore ~
issued and delivered unto HUTTON CONSTRUCTION COMPANY , as follows, to-wit:
Voucher Number Date Amount
3772 December 13th, 1926 59,280.3~
3862 January lOth 1927 2,302.3~
3865 January lOth 1927 1,379.77
3866 January lOth 1927 40,144.~1
2. The parties of the first part guarantee payment of the aforesaid vouchers from
the funds derived by the City of Sanford, Florida from the negotiation and sale of the
$~90,000.00 City of Sanford, Florida , 5~% Street Improvement Bonds now in process of issuance
by the City of Sanford Florida, to be of£ered for sale on March 3rd. 1927, and said parties
of the first part agree to fund and pay the aforesaid vouchers from the proceeds derived from.
the sale of s~id bonds on or before April 1st, 1927, provided the proceeds from the sale of
the bonds aforesaid are available by s~id date, and, should said funds not be available for
said purpose by April 1st, 1927, the parties of the first part, agree to Tund and pay the
vouchers aforesaid as soon thereafter as proceeds from the sale of said bonds are available
3. The parties of the first part agree, in advertising for s~le the said issue
of bonds in the sum of $490,000.00 to insert in the notice of sale a provision that the City
17S ' '
CITY COMMISSION, SANFORD, FLORIDA,
MINUTES
19 ~7
City o£ Sanford, Florida on Larch 3rd. 1927, to provide a fund for the payment and re-
tirement of the vouchers of the Bond Trustees of the City of San~ord, Florida, to be
hypothecated as aforesaid, by HUTTON CONSTRUCTION CO}~PANY unto the party of the second
part hereto as security for the payment of said advance of $1OO,0OO.00 agrees to procure
a valid proposal from some responsible person, firm or corporation to be submitted on the
date of the advertised sale of said bonds, offering to pu~-chase of and from the City of
Sanford Florida, $110,OO0oO0 of the issue of bonds of the City of Sanford, Florida, on
said date offered for sale at a price of not less than 95.1 per cent, together with accrued
interest to date of delivery.
5- The parties of the first part agree that should the proposals received by the
City of Sanford, Florida, on the 3rd. day of March 1927, for the purchase of said issue of
bonds in the sum of $490,000.00 be unsatisfactory and unacceptable to the City of Sanford
Florida, all bids so submitted shall be forthwith rejected and the parties of the first
part further agree, if it becomes necessary to so reject the proposals received on Larch ~rd
1927 for the purchase of said issue of bonds, that they will, thereafter and before the
expiration of thirty days from and after Larch 3rd. 1927 off er said issue of bonds in the
sum of $490,000.00 for sale at private sale in accordance with section 10~½ of the Charter o
the City of Sanford, Florida, and will earnestly endeavor to sell the entire issue of bonds
in the sum of $490,000.00 at private sale at a price satisfactory to the City of Sanford
Florida, and should the City of Sanford, Florida, be unable to sell all of said bonds
at private sale at a price satisfactory to the City of Sanford, Florida, the parties of the
first part agree that they will sell at private sale, within said thirty ~ys period subsequent
to March 3rd. 1927, bonds,of the said issue to the amount of $110,OOOoOO unto the person ,
firm or corporation who at the instance and request of the party of the second part,
submitted a proposal at the advertised sale on Larch 3rd. 192Y, to purchase $110,OOO.OO
of said issue of $490.000.00 at a price of not less than 95.1% with accrued interest to
date of delivery, at and for a sum not less than offered by said bidder for said block of
bonds in the sum of $110,OOO.OO, and ~oon the sale of at least $110,OOO.OO of the bonds
aforesaid, the parties of the first part agree to make delivery of said bonds unto the pur-
chaser thereof at private sale at the earliest possible moment after the award of the
sale thereof unto said purchaser.
6. The parties of the first part agree that, out of the proceeds derived by the
City of Sanford, Florida, from the sale of the whole or any part of said issue of bonds of
the City of Sanford, Florida, in the sum of $490,000.00 they will first pay and discharge
or cause to be paid and discharged by the Bond Trustees of the City of Sanford, Florida
the vouchers heretofore issued by the Bond Trustees of the City of Sanford, Florida, as
aforesaid, to be hypothedated by HUTTON CONSTRUCTION CO~ANY unto the party of the second art
as collateral security for the sum of $100,OOO.OO to be advanced unto HUTTON CONSTRUCTION
CONPANY by the party of the,~second part, as aforesaid, before the payment of any other
voucher, heretofore issued or to be hereafter issued by the Bond Trustees of the City of San~
ford, against any funds coming into their hands from the sale of the said issue of bonds
in the sum of $~90,OOO.O0
MINUTES
CITY COMMISSION, SANFORD, FLORIDA, Japery 2011 1927
second part has caused these presents to be executed in its corporate name , by its
duly authorized corporate officers, on this the day and year first above written.
Signed, sealed and delivered in the
presence of:
As to the City of Sanford, Florida.
~s to the City Commission and ex- officio
Bond Trustees of the City of Sanford, Fla.
CITY OF SANFORD FLORIDA.
BY
Mayor
Attest
Clerk.
As the City Commission and as
ex officio Bond Trustees of the
City of Sanford, Florida.
FLORIDA NATIONAL BANK OF JACK$OT~ILLE.
By
President.
As to Florida National Bank of Jacksonville.
Attest:
,$
Cashier.
Mr DeCottes thoroughly explained to the Commission the agreement reached with
regard to the proposed loan to be made HUTTON CONSTRUCTION COMPANY by FLORIDA NATIONAL
BANK OF JACKSONVILLE, and stated that the manner of the negotiation of the loan as agreed
upon was as set forth in the draft of the contract submitted.
After full discussion of the ~tter, upon motion of Commissioner S 0 Chase which
was unanimously adopted, the draft of the contract as submitted by the City Attorney was
ratified, approved and confirmed and Forrest Lake as Mayor and L R Philips, as City Clerk
were authorized and empowered to execute said contract for and on behalf of the City of
~anford , Florida.
Commissioner Chase also offered the motion which unanimously prevailed that Forrest
Lake , S 0 Chase and E F Housholder, composing the City Commission of the City of $anford
Florida, and also as ex o£ficio Bond Trustees of the City of Sanford, Florida execute the
draft of contract with FLORIDA NATIONAL BANK OF JACKSONVILLE, submitted by the City Attornsy
in~ order to assist HUTTON CONSTRUCTION COMPANY in the procurement of the temporary loan of
$100,000.00 from FLORIDA NATIONAL BANK OF JACKSOI~ILLE.
~he meeting then adjourned.
Attest:
Mayor