HomeMy WebLinkAboutCity of Tamarac Resolution R-79-116Introduced byl-2k n Jy/—,9 >1
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CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R- 79-/IL
A RESOLUTION PROVIDING FOR THE ISSUANCE BY THE CITY OF
TAMARAC, FLORIDA, OF A CAPITAL IMPROVEMENT NOTE IN THE
AMOUNT OF TWO HUNDRED AND FIFTY THOUSAND DOLLARS
($250,000.00) TO THE SUN BANK OF BROWARD COUNTY, TO
ADVANCE FUNDS FOR THE COST OF CONSTRUCTION OF FIRE
STATION NO. 2 OF THE CITY OF TAMARAC; CONTAINING OTHER
PROVISIONS RELATING TO SUCH NOTE; AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA:
SECTION 1: AUTHORITY FOR THIS RESOLUTION.
This resolution is adopted pursuant to the provisions
of Chapter 166, Part II, Florida Statutes, and other applicable provisions of
law. Issuance of bonds was authorized by a Referendum held on March 14, 1978.
SECTION 2: FINDINGS.
It is hereby found, determined and declared as follows,
that:
A. The City of Tamarac is in the process of planning for the
construction and furnishing of its Fire Station No. 2.hereinafter called the
"Project". It is necessary and essential, due to the increase, expansion and
growth of the City,to construct and furnish a new fire station, and the
financing of the Project is an essential step in accomplishing such purpose.
B. It is contemplated that the City will finance the Project over
a fifteen (15) year period. It is necessary, in order to provide for the City's
completion of the Project, that Two Hundred and Fifty Thousand Dollars ($250,000.00)
be made immediately available for such purpose.
C. It is,therefore, necessary to issue a note to the Sun Bank of
Broward County (hereinafter sometimes called "Bank") in the amount of Two Hundred
and Fifty Thousand Dollars ($250,000.00) in order to provide funds to pay the
cost of the project, and it is necessary to pledge all revenues received from
Southern Bell Telephone Company pursuant to its franchise granted by the City of
Tamarac in Ordinance No. 70-4. The note herein issued shall not and does not
pledge the property, credit, or general tax revenue of the City.
D. It is estimated that the proceeds of the funds herein pledged
for payment of the note will exceed the amounts necessary to pay the principal
of and interest on the note when due.
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1 1 SECTION 3: RESOLUTION TO CONSTITUTE CONTRACT
2 In consideration of the acceptance of the note authorized
3 to be issued hereunder to the Sun Bank of Broward County, this resolution shall
4 be deemed to be and,shall constitute a contract between the City and the Bank and
5 a pledge of all of the Southern Bell franchise fees to be paid to the City
6 to secure the note. - The covenants and agreements herein set
7 forth to be performed by the City shall be for the equal benefit, protection and
8 security of the holder of such note, all of which shall be of equal rank and with-
9 out preference, priority or distinction of over any other thereof, except as
10 expressly provided therein and herein.
11 SECTION 4: AUTHORITY OF ISSUANCE OF NOTE
12 For the purpose of financing the cost of the Project, there
13 is hereby authorized to be issued a Capital Improvement Note of the City in the
14 aggregate principal amount of Two Hundred and Fifty Thousand Dollars ($250,000.00).
15 The Note shall be in fully registered form, be dated as of the date of delivery,
76 shall be payable to Sun Bank of Broward County, shall be payable in lawful money
17 of the United States of America, shall be numbered one, shall mature in fifteen
18 (15) years. The payments shall be scheduled as follows:
19 Interest to be paid monthly on the first
20 day of each month, commencing on the first day of the second month after
21 the date hereof, until the seventh month, at which time payments of
22 principal and interest shall be paid in equal monthly installments of
23 $2,134.60 for 174 consecutive months.
24 The Note shall be issued in the amount of Two Hundred and
25 Fifty Thousand Dollars ($250,000.00), shall bear interest at the rate of five and
26 eighty-five hundredths percent (5.85%) per annum and shall be payable with respect
27 to both principal and interest at the Bank by check or draft mailed to the Bank at
28 its office at P.O. Box 5187, 3850 West Commercial Blvd., Fort Lauderdale, Florida
29 33310, or as otherwise designated in writing by Bank. The City shall have the right
30 and privilege to redeem the Note in full at any time prior to maturity upon payment
31 of the unpaid principal sum plus accrued interest, to the date of redemption and
32 without penalty and without prior notice to the Bank.
33 SECTION 5: EXECUTION OF NOTE
34 The Note shall be executed in the name of the City by
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I the Mayor and attested and countersigned by the City Clerk and City Manager and
2 its corporate seal shall be affixed thereto. The Note may be signed and sealed on
3 behalf of the City by such person who at the actual time of the execution of such
4 Note shall hold the public office in the City, although at the date of such
5 Note such person may not have been so authorized.
6 SECTION 6: NOTE MUTILATED, DESTROYED, STOLEN OR LOST.
In case the Note shall be mutilated, or be destroyed, stolen or
8 lost, the City may in its discretion issue and deliver a new Note of like tenor
9 as the Note so mutilated, destroyed, stolen or lost,.in exchange and substitution
10 for such mutilated Note, upon surrender and cancellation of such mutilated Note,
11 if any, or in lieu of or substitution for the Note, if any, destroyed, stolen,
12 or lost, and upon the holder furnishing the City proof of its ownership thereof
13 and satisfactory indemnity and complying withsuch other reasonable,regulations
14 and conditions as the -City may prescribe and paying such expenses as the City
15 may incur. The Note so surrendered shall be cancelled by the City Manager and
76 Clerk. If the Note shall have matured or be about to mature, instead of issuing
17 a substitute Note, the City may pay the same, upon being indemnified as aforesaid,
18 and if such Note be lost, stolen or destroyed without surrender thereof.
19 Any such duplicate Note issued pursuant to this section
20 shall constitute original, additional contractural obligations on the part of
21 the City whether or not the lost, stolen or destroyed Note be at any time found
22 by anyone, and such duplicate Note shall be entitled to equal and proportionate
23 benefits and rights as to lien on and source and security for payment from the
24 funds, as hereinafter pledged, to the same extent as the other Note issued
25 hereunder.
26 SECTION 7: FORM OF NOTE
27 The text of the Note shall be in substantially the
28 following form and tenor, with such variations, omissions and insertions as may
29 be necessary, desirable and authorized or permitted by this Resolution or any
30 subsequent Resolution adopted prior to the issuance thereof:
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No. 1
$250,000.00
UNITED STATES OF AMERICA
STATE OF FLORIDA
COUNTY OF BROWARD
CITY OF TAMARAC
PROMISSORY NOTE 1979
FOR VALUE RECEIVED, the Undersigned, promise to pay to the order of SUN BANK
OF BROWARD COUNTY, at Post Office Box 5187, 3850 West Commercial Boulevard, Fort
Lauderdale, Florida 33310, or such other place as the holder of this Note
may designate in writing, the principal sum of TWO HUNDRED FIFTY THOUSAND AND
NO/100 ($250,000.00) DOLLARS in legal tender of the United States of America,
with interest on such of the principal amount as may be advanced and outstanding
from time to time, at -the rate of 5.85 percentage. Interest is to be paid
monthly, without notice, on the first day of each month commencing on the first
day of the second month after the date hereof, until the seventh month, at which
time the undersigned shall commence to pay principal and interest in equal monthly
installments of $2,134.60 for 174 consecutive months.
Nothing herein will entitle,the holder hereof to receive a rate of return on the
money loaned or advanced from time to time which is in excess of the rate allowed
by Chapter 687, Florida Statutes, as it may be amended from time to time. In the
event any term hereof would require payment of a sum which could render the rate
of return usurious as defined in said statutes, then the amount thereof will be
forthwith credited toward the principal.
Time is of the essence of each payment required hereunder, and if any payment is
not made promptly when due, then the holder may, at its option, accelerate the
due date and declare the entire principal amount immediately due, payable and
collectible without prior notice. Failure to exercise this option in event of
any default will not constitute a waiver of the right to exercise this option in
event of future default. Furthermore, any delay or forebearance in the event
of default will not, in the absence of written agreement to the contrary, be
deemed a waiver of the option to accelerate on account of that default.
The Maker, its successors, and assigns, reserve the right to prepay the
principal amount in whole or in part, at any time and from time to time, before
due, with liability for interest on any sums so prepaid to extend only to the
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1 date of prepayment.
2 Should it be necessary to incur costs and attorneys' fees in collecting or
3 enforcing this Note, the Undersigned and all other parties liable hereunder agree
4 to pay all costs for collection or enforcement, including reasonable attorneys'
5 fees which may be incurred prior to suit, and for instituting and prosecuting
6 any suit in the trial court of any appellate court.
7 All parties of this Note waive presentment, protest, notice of protest, and
8 notice of dishonor as well as all other defenses which might be available to
9 them under the Uniform Commercial Code and the laws of suretyship and guaranty
10 as parties secondarily liable.
11 The principal of and interest on this Note are payable from a pledge of all
12 revenues received from Southern Bell Telephone Company pursuant to its Franchise
13 granted by the City of Tamarac in Ordinance No. 70-4. This Note shall not and
14 does not pledge the property, credit, or general tax revenue of the City.
15 This Note does not constitute an indebtedness of the City within the meaning of
16 any constitutional or statutory provision or limitation, and it is expressly
17 agreed by the holder of this Note and the interest appertaining thereto that
18 such holder shall never have the right to require or compel the exercise of the
19 ad valorem taxing power of the City for the payment of the principal of and interes
20 on this Note.
21 It is further agreed between the City and the holder of this Note that this Note
22 and the obligations evidenced thereby shall not constitute a lien upon the Project,
23 or any part thereof, or on any other property of or in the City.
24 The CITY OF TAMARAC represents that it has the legal authority to execute and
25 deliver this Promissory Note; that the City Charter, Ordinances, laws of the State
26 of Florida, and any applicable Federal laws, do not prohibit the execution and
27 delivery of this Promissory Note; and that a majority of the electorate of the
28 CITY OF TAMARAC approved the construction of the project for which the proceeds
29 of the Promissory Note are to be used, and the financing of the project as
30 evidenced by this Promissory Note at a general election held on March 14, 1978.
t "3 1 These representations shall survive the execution and delivery of this
32 Promissory Note.
33 IN WITNESS WHEREOF, the CITY OF TAMARAC has caused this Note
34 to be signed by its Mayor, attested and countersigned by the City Manager and
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City Clerk, and its corporate seal to be affixed hereto, all as of the
day of June, 1979.
Attested and Countersigned
City Manager
City Clerk
THE CITY OF TAMARAC
By
Mayor
SECTION 8: PLEDGE OF NON AD VALOREM FUNDS
The principal of and interest on the Note are secured
by and payable from a pledge of all of the Southern Bell Telephone Franchise fees
paid to the City and legally available therefor. The Note shall not and does
not pledge the property, credit, or general tax revenue of the City. No
holder of the Note issued hereunder shall ever have the right to compel the
exercise of the ad valorem taxing power of the City or taxation in any form
of any real property therein to pay such Note or the interest thereon or be
entitled to payment of such principal and interest from any other funds of the
City except from the special funds in the manner provided herein.
SECTION 9: CITY BUDGET
The City, in preparing approving and adopting its
budget controlling or providing for the expenditures of its funds so long as any
principal of or interest on the Note is outstanding and unpaid, will appropriate,
allot and approve, from funds of the City derived from sources other than ad
valorem taxes and legally available therefor, the amounts sufficient to pay the
principal of and interest on the Note as the same shall become due, after
deducting therefrom any other funds which may be available for such payments
and which may be so applied.
i SECTION 10: NOTEHOLDER NOT AFFECTED BY USE OF NOTE PROCEEDS
The holder of the Note issued hereunder shall have no
responsibility for the use of the proceeds of said Note, and the use of such
Note proceeds by the City shall in no way affect the rights of such Noteholder.
SECTION 11: MODIFICATION OR AMENDMENT. No material modification
or amendment of this Resolution or of any Resolution amendatory hereof or
an
1 supplemental hereto, may be made without the consent in writing of the holder of
2 said Note.
3 SECTION 12: SEVERABILITY OF INVALID PROVISIONS
4 If any one or more of the covenants, agreements or
5 provisions of this Resolution should be held contrary to any express provisions
1
b of law or contrary to the policy of express law, though not expressly
7 prohibited, or against public policy, or shall for any reason whatsoever be-
8 held invalid, then such covenants, agreements or provisions shall be null and
9 void and shall be deemed separate from the remaining covenants, agreements or
10 provisions, and in no way affect the validity of all the other provisions of
11 this Resolution or of the Note issued thereunder.
12 SECTION 13: ARBITRAGE
13 No use will be made of the proceeds of the Note which
14 would cause the same to be "arbitrage bonds" within the meaning of the Internal
15 Revenue Code. The City at all times while the Note and interest thereon are
16 outstanding will comply with the requirements of Section 103(d) of the Internal
17 Revenue Code and any valid and applicable rules and regulations of the Internal
18 Revenue Service.
19 SECTION 14: AUTHORITY TO EXECUTE
20 Specific authority is hereby granted for the appropriate
21 City officials to execute all documents and pay all fees including, without
22 limitation, the bank's attorney's fees and any recording fees, necessary to
23 close on the loan. Bank will execute this document to signify its acceptance of the
24 contract provisions SECTIONEFFECTIVE DATE
25 This Resolution shall take effect immediately upon its
26 final passage.
27 PASSED,APPROVED AND ADOPTED this_L-3 d
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A - T:
0 -
3 1 CITY CL RK
32 I HEREBY CERTIFY that I
3 3 have approved the form and
correctness of this RESOLUTION
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CITY ATTORNEY
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I, ARTHUR M. BIRKEN, City Attorney of Tamarac,
Florida, certify that I have reviewed and that I am
familiar with the provisions of that Resolution No.
of the City of Tamarac and the Promissory
Note in the amount of $250,000.00 for the construction
of Tamarac Fire Station No. 2. It is my opinion
that this Resolution and Note are legal and are in
compliance with all requirements of the City Charter
and Ordinances and that the City is authorized to
borrow the $250,000.00 and execute necessary
documents pertaining thereto.
ARTHUR M. BIRKEN
This4day of ,1979.
United States of America
State of Florida
County of Broward
City of Tamarac
PROMISSORY NOTE
No. 1
$250,000.00
1979
FOR VALUE RECEIVED, the Undersigned, promise to pay to the order of SUN BANK
OF BROWARD COUNTY, at Post Office Box 5187, 3850 West Commercial Boulevard,
Fort Lauderdale, Florida 33310, or such other place as the holder of this
Note may designate in writing, the principal sum of TWO HUNDRED FIFTY
THOUSAND AND NO/100 ($250,000.00) DOLLARS in legal tender of the United
States of America, with interest on such of the principal amount as may be
advanced and outstanding from time to time, at the rate of 5.85 percentage.
Interest is to be paid monthly, without notice, on the first day of each
month commencing on the first day of the second month after the date hereof, until
the seventh month, at which time the undersigned shall commence to pay
principal and interest in equal monthly installments of $2,134.60 for 174
consecutive months.
Nothing herein will entitle the holder hereof to receive a rate of return
on the money loaned or advanced from time to time which is in excess of
the rate allowed by Chapter 687, Florida Statutes, as it may be amended
from time to time. In the event any term hereof would require payment of
a sum which could render the rate of return usurious as defined in said
statutes, then the amount thereof will be forthwith credited toward the
principal.
Time is of the essence of each payment required hereunder, and if any pay-
ment is not made promptly when due, then the holder may, at its option,
accelerate the due date and declare the entire principal amount immediately
due, payable and collectible without prior notice. Failure to exercise this
option in event of any default will not constitute a waiver of the right to
exercise this option in event of future default. Furthermore, any delay or
forebearance in the event of default will not, in the absence of written
agreement to the contrary, be deemed a waiver of the option to accelerate
on account of that default.
The Maker, its successors, and assigns, reserve the right to prepay the
principal amount in whole or in part, at any time and from time to time,
before due, with liability for interest on any sums so prepaid to extend
only to the date of prepayment.
Should it be necessary to incur costs and attorneys' fees in collecting or
enforcing this Note, the Undersigned and all other parties liable hereunder
agree to pay all costs for collection or enforcement, including reasonable
attorneys' fees which may be incurred prior to suit, and for instituting
and prosecuting any suit in the trial court of any appellate court.
All parties of this Note waive presentment, protest, notice of protest,
and notice of dishonor as well as all other defenses which might be available
to them under the Uniform Commercial Code and the laws of suretyship and
guaranty as parties secondarily liable.
The principal of and interest on this Note are payable from a pledge of all
revenues received from Southern Bell Telephone Company pursuant to its
Franchise grantede City of
theTamarac propertyr, ccredit,�corNo. generral.taxhis Note
revenue
shall not
of the City.
This Note does not constitute an indebtedness of the City within the meaning
of any constitutional or statutory provision or limitation, and it is
expressly agreed by the holder of this Note and the interest appertaining
thereto that such holder shall never have the right to require or compel
the exercise of the ad valorem taxing power of the City for the payment of
the principal of and interest on this Note.
It is further agreed between the City and the holder of this Note that this
Note and the obligation evidenced thereby shall not constitute a lien upon
the Project, or any part thereof, or on any other property of or in the City.
The CITY OF TAMARAC represents that it has the legal authority to execute
and deliver this Promissory Note; that the City Charter, Ordinances, laws
of the State of Florida, and any applicable Federal laws, do not prohibit
the execution and delivery of this Promissory Note; and that a majority of
the electorate of the CITY OF TAMARAC approved the construction of the
Project for which the proceeds of the Promissory Note are to be used, and
the financing of the Project as evidenced by this Promissory Note at a
general election held on March,14,1978. These representations shall
survive the execution and delivery of this Promissory Note.
IN WITNESS WHEREOF, the CITY OF TAMARAC has caused this Note to be signed
by its Mayor, attested and countersigned by the City Manager and City
Clerk, and its corporate seal to be affixed hereto, all as of the % �%
day of 7a o e,� ,1979. —" 7��
Attested ,ail�ountersigned
CITY- M ager
Quo Ci t Clerk
�,(/-
LJ
TH
By
W. C. Lantatt
Group Manager
Mr. Arthur Birken
City Attorney
City of Tamarac
5811 NW 88 Ave.
Tamarac, F1. 33321
Dear Mr. Birken:
Southern Bell
2000 North State Road 7
Margate, Florida 33063
Phone(305)972-3690
Margate, Florida
June 12, 1979
This letter will confirm our telephone conversation
concerning the Franchise Fee paid to the City of Tamarac.
Southern Bell pays to the City of Tamarac a fee of 1%
of its gross receipts in order to provide telephone service
to the City. This Franchise Agreement became effective on
March 17, 1970 and will be in force for a period of thirty
(30) years from that date.
Southern Bell understands that the revenue from the
Franchise Fee is being pledged against a loan the proceeds of
which will be used to construct a new fire station.
Yours very truly,
William C. Lantaff
Manager - Business Office
WCL/jp
CLOSING STATEMENT
JUNE 14, 1979
$250,000.00
TAMARAC FIRE STATION NO. 2
RECEIVED FROM CITY OF TAMARAC
1. Resolution No. 79-116
2. Promissory Note - $250,000.00
3. Opinion of City Attorney
4. Letter from Southern Bell
Telephone Company
5. Check in amount of $900.00 pay-
able to law firm of Rogers,
Morris & Ziegler, P.A.
SUP
RECEIVED FROM SUN BANK
1. Draft in amount of
$250,000.00
CITY OF TAM"ARAC
dward A. Gross City(Manager