Fort Walton Beach Council minutes — 05-10-1955 Regular — reading text

as many as 2000 sewer customers in one y. ar, the Cigarette Tax would not be needeci. Mr. Roberts asked if this method of financing wouldn' t bJdng a better price. Mr. BrashIer replied that Florida, is the only state where that source of revenue is recognized, that advalorum tax is standard. He added that if they had thought : they could market the issue with taxes, they would' have recQmmemied that pro- cigarette ceedure rather than the election. He told the Council it was a ques- cigarette taxes are as good a o tion of the buyers not realizing that pledge as advalorum taxes. He. added that only 4 issues have had cigarette taxes pledged. Mr. Fleet asked if the charter would per.. mi t pledging this revenue. Mr. Brashler replied t they had th.. 0 I  3i' chec~ed the charter and that it was ~ rded so that it,was legal to pledge the cigarette tax revenue. I Mr. Mohr added,that they had still rather have an election but that it would be impossible to hold one' in time to satility the government( s requirements. Following a discussion Mayor Brooks asked Mr. BrashIer to read their proposed agreement. . Following a discussion during which r I the Council and Fiscal Agents ag1ieed upon 95 par with 4i%interest, i i callable in inverse numerical order of maturity after 7 years, with j It I 4, year coupons at 1%, a motion was made by .Mr. Stacy and seconded by Mr. Bass that the offer of Barcus, Kindred and Company and f Thornton, Mohr and Fapish be accepted. Vote aye, tulanimous. The agreemlnt is as follows: l May 16, 1955 l j Honorable' Mayor and City Council City of Fort Walton Beach Florida GentlemEll : 1 i, I Under date of April 14, 1954, we Wltered into a contrac:t with you to assist you in arranging for the financing of a sewer and sewage dis- posal plant system to serve most of the City. ' PUrsuant to this con- tract, we, together with your engineers and other city officials, fj I have been informally advised that the Federal Government will grant to the City approximately $ 240, 000 whicb. will supplement the own tinancing. City' s This Federal assistance, when approved, will be contin- gent upon the City' s raising at least $ 400, 000 by means of its own I bond issue. The recent abortive election to provide for the issuance of $ 400, 000 general obligation bonds has created a problEII conceriiing the Federal Grant. In order to satisfy the requirement of the Federal J~ authorities that the City arrange its financing in a specific fashion J in the very near ' future, we hereby submit the following proposal: l 1. We hereby agree to purcha. e and by acceptance hereof you J~ 1. e.gree to sell to us, approximately $ 425, 000 sewer. revenue cwrtificates ( additionally secured as set forth below) at a price of 95% of par value plus accrued interest to t date of delivery. The certificate.s shall bear a basic rate of. interest of 41% per annum from their date to the respective iea thereof, and, in addition, ahall maturij:. 1 bear additional ~ erest coupons at the rate of 1% per annum j from. January 1, 1956, to July 1, 1960. This proposal is made subject to the following conditions: A. The certifica~, when delivered to us, will be accompanied bY the tulqualified approving opinion of bond * ttorneys of our choice, the fee for . I said opinion and other legal wOl"k to be done by the bond attorneys to be paid by us. B. The provisions of the authorizing ordinance or resolution ' shall besatisfactory to us in all respects and to the City Council. In this 238 connection, it is understood the ordinance will con- tain, but not be limited. to, the following provisions I 1) A satisfactory requirement making it manda- tory for buildings located on sewer laterals D to conneot up to the syst em as soon as se3:"Vice is available. . 2) The City will pledge to the payment of the sewer revenue certificates, such amounts of its cigarette tax as may be necessary to ' make requi red minimum payments to the bond and interest fund and the bond reserve fund. The bond attorneys shall state that this cigarette tax pledge is a valid, binding, and irrevocable pledge so long as any of the certificates are outstanding prior to delivery of all certificates to us. 3) The certificates shallmature serially over a period add in such amounts asmay be desig- nated by us, but in no event shall the maturi- ties exceed forty years. 4) All certificates shall be made callable after seven year. at premiums not ixceeding one year' s interest rate, in inverse numerical C. The order. City will have entered into firm construction con- o tracts for the entire project and said contracts will be within the am01mt of money to be provided by the Federal grant and the certificate proceeds. D. Prior to delivery, the City will have received evi- dence aatisfactory to us and their consulting engineers that the Federal grant has been approved. E. The engineering report of Kenan & Associates, Engineers, will show that no less than 1, 600 existing buildings will be served by the proposed sewer system. 2. Upon aoceptAnce of this proposal by the City, it is understood that the City' s obligation to us for the payment of a fee provided for in the agreement of April 14, 1954 shall cease; provided that should this contract at a later date expire, then the agreement of April 14, 1954, and the City' s obli- gation and the fee specified therein shall again be in full force and effect. 3. This contract shall remain in full force and effect from th e o date hereof until May 16, 1956, unless extended by us for addi tioJ'J.al thirty-day periods in wi ting. In the event of termination under this paragraph, the good faith check shall be returned to us promptly. r  239 4. As' evidence of our good faith, we are atta~hing herewith a certi- fied check in the amount of $ 4, 250. 00, to be held by,you, un- 1 cashed, pending delivery of the certificates to forfeited as full liquidated damages if' we fail to perform. in accordance with the terms of this proposal. us, or -to be Respectfully submitted for immediate acceptance or refusal, BARCUS, KINDRED & COMPANY THORNTON, MOHR & FARISH s," By ' Richard J. BrashIer chard J. BrashIer By s/ Sidney J. Mohr, Jr. Sidney J. Mohr, Jr. Accepted by appropriate Council action this 16th day of Ma~ 1955. CITY OF FORT WALTON BFACH, FIDRIDA By s/ Thomas E. Brooks ATTEST: Mayor s/ o. K. Ro~ ra City fn 1 The, plat of the First Addition of Lakeland Heighta was presented for approval. FollQ(ing, a discussion, during which it was brought out that this subdivision was a portion of a subdivision already approved, a motion was made by Mr. Miller and seoo~ ed by Mr. Walker that the ordi- nance requirements be waived so that the plat could be considered by the CounCil today. Vote aye, unanimous. A motion vas made by Mr. BaS8 and seconded by Mr. Roberts that the plat be approved. Vote aye, unanimous. Ordinance No. 164 was then placed on third reading andrMd in full by Cbl" th"" k. After hearing the ordinance read, a motion was made by Mr. Roberts and seconded by Mr. Bass that .Ordinance No. 164 be adopted on the third 'and final reading. Vote aye, unanimous. The ordinance is as follows: ORDINANCE NO. 164 AN ORDINANCE ENTITLED AN ORDINANCE REDULATING AGENTS, CANVASSERS, SOLICITORS AND .sALESMEN AND REQUIRING PERMITS TO CARRY ON THEIR ' ' IN THE CITY OF FORT