Ordinance No. 80-89-41 v .
ORDINANCE NO. 80-89-41
AN ORDINANCE AMENDING ORDINANCE NO. 80-88-37,
RELATING TO THE OAK HARBOR WATER AND SEWER
DISTRICT AND OAK HARBOR WATER AND SEWER DISTRICT
REVENUE BONDS; PROVIDING FOR AUTHORIZED
DENOMINATIONS AND TRANSFERS OF BONDS; AMENDING
TIMES FOR PAYMENT AND REDEMPTION OF BONDS;
INCREASING DEBT SERVICE COVERAGE REQUIREMENTS;
APPOINTING A SUCCESSOR PAYING AGENT AND REGISTRAR;
APPROVING A REOFFERING CIRCULAR AND REMARKETING
OF THE BONDS; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF ATLANTIC
BEACH, FLORIDA:
Section 1. Amendment to Ordinance. Ordinance No. 80-88-37 of the
City of Atlantic Beach, Florida, is amended as follows:
(a) The first paragraph of Section 8 is amended to read as follows:
"Section 8. DESCRIPTION OF INITIAL BONDS. The Initial Bonds shall
be dated as of their date of delivery, shall be designated "R- " and numbered
consecutively from one upward in order of authentication; shall be in Authorized
Denominations ($5,000 each or integral multiples thereof), and shall bear interest at the
rate of 8.0% per annum, payable semi-annually on December 1, 1989 and each June 1 and
December 1 thereafter. The Bonds shall mature serially in installments on December 1,
1989, and each December 1 thereafter, in the following years and amounts:
Maturity Principal Maturity Principal
Date Amount Date Amount
1989 $ 5,000 2004 $ 25,000
1990 10,000 2005 25,000
1991 10,000 2006 30,000
1992 10,000 2007 30,000
1993 10,000 2008 35,000
1994 10,000 2009 35,000
1995 15,000 2010 40,000
1996 15,000 2011 45,000
1997 15,000 2012 45,000
1998 15,000 2013 50,000
1999 15,000 2014 55,000
2000 20,000 2015 60,000
2001 20,000 2016 65,000
2002 20,000 2017 70,000
2003 25,000 2018 75,000"
* * *
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(b) Section 10 is amended to read as follows:
"Section 10. NEGOTIABILITY. Subject to the provisions hereof respect-
ing registration and transfer, the Bonds shall be and shall have all the qualities and
incidents of negotiable instruments under the laws of the State of Florida, and each
successive holder, in accepting any of the Bonds shall be conclusively deemed to have
agreed that such Bonds shall be and have all of such qualities and incidents of negotiable
instruments under the Uniform Commercial Code - Investment Securities of the State of
Florida."
(c) The first two paragraphs of Section 13 are amended to read as follows:
"Section 13. PROVISIONS FOR REDEMPTION. The Initial Bonds shall be
redeemable, at the option of the City, on and after March 1, 1994, in whole or in part, in
inverse order of maturity and by lot within a maturity, on any date, at the price of par
plus accrued interest to the redemption date.
Bonds in denominations greater than an Authorized Denomination shall be
deemed to be an equivalent number of Bonds in the denomination of the minimum
Authorized Denomination, and if a Bond is of a denomination larger than the minimum
Authorized Denomination, a portion of such Bond may be redeemed, in the amount of any
Authorized Denomination."
* * *
(d) Section 17E is amended to read as follows:
* * *
"E. RATE ORDINANCE. The City has enacted or will enact a rate
ordinance and thereby will fix, establish and maintain such rates and will collect such
fees, rentals and other charges for the services and facilities of the Oak Harbor System
and revise the same from time to time whenever necessary, as will always provide Gross
Revenues in each Fiscal Year sufficient to pay the Cost of Operation and Maintenance of
the Oak Harbor System in such Fiscal Year, one hundred twenty per centum (120%) of the
Bond Service Requirement becoming due in such Fiscal Year on the outstanding Bonds,
plus one hundred per centum (100%) of all reserve and other payments required to be
made pursuant to this Ordinance. Such rates, fees, rentals and other charges shall not be
reduced so as to be insufficient to provide Gross Revenues for such purposes. However,
nothing in this Ordinance shall ever require the City to raise rates or charges for utility
services provided to areas outside Oak Harbor District."
* * *
(e) Subsection 17M(1) is amended to read as follows:
"M. REMEDIES. (1) It shall be an "Event of Default" under this
Ordinance if any of the following shall occur:
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(a) Failure to pay any portion of the principal of or interest on
the Bonds when due;
(b) Failure by the City to comply with any of the covenants and
terms of this Ordinance made for the benefit of the Bondholders;
(c) There shall occur the filing by the City of a voluntary
petition in bankruptcy, or the commission by the City of any act of bankruptcy, or the
adjudication of the City as a bankrupcy, or the assignment by the City for the benefit of
its creditors, or the entry by the City into an agreement of composition with its creditors,
or the approval by a court of competent jurisdiction of a petition applicable to the City in
any proceeding for its reorganization, instituted under the provisions of the Federal
Bankruptcy Act, as amended, or any similar act in any jurisdiction which may now be in
effect or hereinafter amended; or
(d) An order or decree shall be entered, with the consent or
acquiescence of the City, appointing a receiver or receivers of the Oak Harbor System, or
any part thereof, or of the rents, fees, charges or other revenues therefrom, or if such
order or decree, having been entered without the consent of acquiescence of the City,
shall not be vacated or discharged or stayed within 90 days after the entry thereof."
* * *
Section 2. Paying Agent and Registrar. Florida National Bank,
Jacksonville, Florida, is hereby appointed as successor paying agent and registrar for the
City's Oak Harbor Water and Sewer District Revenue Bonds.
Section 3. Approval of Remarketing and Reoffering Circular. The
remarketing of the Oak Harbor Water and Sewer District Revenue Bonds of the City as
described in the Reoffering Circular attached hereto as Exhibit A, revised to reflect the
deletion of all references to Non-Ad Valorem Revenues, is approved, and the Mayor and
City Manager are authorized to execute and deliver the Reoffering Circular for such
purposes, in substantially the form attached hereto, with such changes as they shall
approve, their approval to be evidenced by their execution thereof, upon satisfaction of
the conditions for resale provided in Resolution No. 89-10 of the City and approval by the
City Attorney.
Section 4. Effective Date. This ordinance shall become effective
immediately upon its enactment. However, the amendments described in Section 1 and
the appointment of the successor paying agent and registrar shall become effective only
upon the delivery of Bonds remarketed as described in Section 3 hereof.
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Passed on first reading MAY 22, 1989
Passed on second and final reading JUNE 12, 1989
Approved as to form and correctness:
/2 /7
_ _City Attorney
CITY OF ATLANTIC B' - H, FLORIDA
By: hi,
Tr or
(SEAL)
Attest:
City ler.k
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