HomeMy WebLinkAbout12-03-1958 Special MeetingJ
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MINUTES OF A MEETING OF THE BOARD OF
DIRECTORS OF THE WATER WORKS AND SEWER
BOARD OF THE CITY OF.FAIRHOPE HELD ON
THE DAY OF DECEMBER, 1958 AT
3 ; 6 o 0' CLOCK, _f. M.
The following were present at the meeting:
Messrs. A. C. Mannich, R. Roy Moyers, R. R. Teamer, and
Wm. R. Ruffles, Jr., being all of the members of the
Board of Directors of the corporation. Mr. Mannich acted
as chairman of the meeting and Miss Marie Moore, who was
also present acted as secretary of the meeting. The chair-
man announced that a waiver of notice of the time, place
and purpose of the meeting had been signed by all the mem-
bers of the board of directors and, a quorum being present,
that the meeting was open for the transaction of business.
Upon motion duly made, seconded and unanimously carried,
the said waiver was ordered spread upon the minutes of the
meeting at the end thereof.
The chairman stated that inasmuch as there had
been appointments to the membership of the board of directors
since the last election of officers it would be in order
to hold an election for officers of the corporation.
Mr. thereupon introduced the follow-
ing resolution and moved that the same be adopted, which
motion was seconded by Mr. �1�x rc�,� , and upon
vote being taken thereon the said resolution was unanimously
adopted by the votes of all the members of the board of
directors:
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BE IT RESOLVED by the Board of Directors of the
Water Works and Sewer Board of the City of Fairhope that
the following be and hereby are elected to the offices of
the corporation set opposite their respective names to
serve until their successors are elected and qualified:
A. C. Mannich - Chairman of the Board of
Directors
R. Roy Moyers - Vice Chairman of the Board
of Directors
Marie Moore - Secretary of the Board
of Directors
Marie Moore - Treasurer of the Board
of Directors
The said officers so elected thereupon assumed their
respective offices to which they had been so elected.
The chairman reported that Donald Mills, the
engineer who had been engaged for the purpose of making
a survey of the needed improvements and extensions to the
water and sewer system now owned by the board, had made
a report which showed that improvements and extensions
are necessary to be made at an estimated cost of $210,000
in order for the said system to render reasonably adequate
water and sewer service to the inhabita;ts of the city.
Discussion was then had as to the ability of the corporation
to finance the said improvements and extensions, and as
a result thereof it was ascertained and determined that
the revenues of the board derived from its water and sewer
system, after paying the expenses of operating and maintain-
ing the same and complying with the requirements of the out-
standing bonds of the corporation heretofore issued by it,
are not by themselves sufficient to finance an additional
issue of bonds by the corporation in an amount necessary
to pay the costs of constructing the said improvements
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and extensions. The chairman then stated that the mayor
of the City of Fairhope had stated that the city is vitally
interested in seeing that the said improvements and ex-
tensions are made and if the board is not able to raise
the moneys necessary to pay the costs thereof then the
city would undertake to do so provided the board would
sell the said water and sewer system to tYncity. He
pointed out that the city had surplus revenues derived
from the operation of its natural gas distribution system
which could be used to supplement the revenues from the
said water and sewer system, if the city should own the
title to the said water and sewer system and should issue
the necessary securities required to raise the funds to
make the said improvements and extensions. After discussion
of the matter it was concluded that it would be to the best
interest of the citizens of the city that the said improve-
ments and extensions be made and, since the corporation
will have to borrow the funds necessary to make the said
improvements and extensions it would be to the best in-
terest of the citizens of the city that -the corporation
convey its water and sewer system to the city so that the
city would be able to make such improvements and extensions.
It was pointed out that under the indentures securing the
outstanding bonds of the corporation such a conveyance
is permitted provided the city would become obligated to
meet the requirements of such bonds, and that the act
under which the corporation was organized would also permit
such a conveyance. After full discussion of the matter the
following resolution was introduced by Mr._
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who moved that the same be adopted, and upon vote being
taken thereon the said resolution was unanimously adopted
by all members of the board of directors:
BE IT RESOLVED by the Board of Directors of the
Water Works and Sewer Board of the City of Fairhope as
follows:
(1) There is hereby authorized to be sold by
this corporation to the City of Fairhope, a municipal
corporation under the laws of Alabama, the entire water
and sanitary sewer system owned by this corporation,
together with all real and personal properties and all
other assets of any kind whatsoever in connection there-
with, including specifically cash and investments of any
kind in which this corporation has any interest, upon
assumption by the said city of all the obligations on
the part of this corporation contained in the two mort-
gages and deeds of trust between this corporation and The
Merchants National Bank of Mobile dated respectively July
1, 1950 and as of July 1, 1953 which mortgages and deeds
of trust were executed respectively as security for the
Mortgage Water and Sewer Revenue Bonds of this corporation
dated July 1, 1950 and the Water and Sewer Revenue Bonds,
Second Series, of this corporation dated July 1, 1953,
and also upon assumption by said city of all other obliga-
tions on the part of this corporation with respect to said
system, which assumptions on the part of said city may be
limited to the revenues derived from the operation of said
system.
(2) The chairman of the board of directors of
this corporation is hereby authorized and directed to
execute and deliver, in the name of and behalf of this
corporation, an appropriate deed and bill of sale for the
purpose of consummating the sale of the said assets and
transferring and conveying the same to the said city
upon such assumptions by the said city, and the secretary
of this corporation is hereby authorized and directed to
affix to -such deed and bill of sale and attest the corporate
seal of this corporation.
There being no further business to come before
the meeting the same was on motion duly adjourned.
Secretary