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HomeMy WebLinkAbout08-14-1934 Regular MeetingSTATE OF ALABAMA. COUNTY OF BALDWIN. The Town Council of the Town of Fairhope, County of Baldwin, Alabama, met in regular session at Town Hall at 7:30 o*clock, P.M., on the 14th day of August, 1934, when and where the following mem- bers Were present, to -wit: M.F. Northrop, mayor; C.A. Gaston; Howard Ruge; J.Q. Stimpson; M.O. ferglin, councilmen.;� -he ng absent; the same constituting the full mem- bership of the Town Council. The following ordinance No. 120 and entitled "AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF NINETY ONE THOUSAND DOLLARS ($91,000.00) OF REVENUE BONDS OF THE TOWN OF FAIRHOPE, IN THE COUNTY OF BALDWIN, STATE OF ALABAMA, UNDER THE PROVISIONS OF ACT NO. 102, GENERAL ACTS OF ALABAMA, APPROVED MARCH 299 19339 FOR THE PURPOSE OF DEFRAYING THE COST OF CONSTRUCTING A NEW WATER- WORKS AND SEWERAGE SYSTEM FOR THE TOWN OF FAIRROPE, PRE- SCRIBING THE DETAILS OF SAID BONDS, PROVIDING FOR THE COL- LECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SUCH WATERWORKS AND SEWERAGE SYSTEM, PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONS, AND FOR OTHER PURPOSES . " was introduced by (! - C.0 -f , read is full by the Clerk and considered by the Council, said ordinance being as fol- lows: ORDINANCE NO. 120. AN ORDINANCE AUTHORIZING i-JID PROVIDING FOR THE ISJUANCE OF KINi9TY ONZ THOUSAND DOLLARS ($91,000.00) OF REV OUE B(,)NDS OF THE TOWN OF FAIRHOPEI IN THE Comay OF BALDWIN,j STATE OF AJL.,,�xlLij UNDER THE PW- VISIONS OF ACT NO. 1029 G'WMUL ACTS OF AL,ABAM,9 APPROVED MARCH 299 19539 FOR THE PURPOSE OF DMI&YING THE COOT CIF COW- STRUCTING A -ffZVf-UATERW(,RK3 .-VR) SYJVW FOR THE TO' ' *,N OF FAIRH()Pt PjjZWRj- BING TH& DETAILS OF ',4,1D BUMS PROVIDING FOR THS COLL9CTIOt%9 39GPEGz,iTION ` ' IN�FMXD DIS- TRIBUTION OF THS RES OF SUCH WATER- XRKS AND S&IRRAGE SYSTSM9 PROVIDING FOR THE PAYMENT CF TAZ PRINCIP,,kL OF lum INTIME-13T ON SAID BONDS, *KD FOR OTHLER IV"OSES. AIERZAS, It has become neoessary and is deemed advisable tint the Town of Fairhope, in the County of Baldwin, State Of Alabmal construct a waterworks and sewerage system in and for said Tovm of Fairhope so ns to provide a waterworks and sewerage systen, for said Tcv;n of Fairhope and its inhabitants, thCre being now no adequate end sanitary waterworks and sewerage system in said Town of Fairhope and that the cost thereof to the rimount of Ninety Onc Thousand Dollars ($919000.00) be defrayed by the issuance of revenue bonds of said Town of Fairhope to the amount of Ninety One Thousand Dollars ($91,000., and; WHEREAS, an estimate has been jaade of the probable cost of the contemplated improvements, whip-h said estimate is One Hundred Twenty Thousand Dollars(�120,000.00); and WHYR&I.S3, the contemplated improvements 1-.re-as follows: Viaterwrks system: Consisting of a ivell, aerator, concrete reservoir, tank and tower, fire pumps, service pumps, cost Iron pipe, aistribut ion system, sewerage system: A collecting system, and disposal plant. NOW T11113TI&FOREj, H& IT Q-RDAINED BY TfL, T�,i'4 COUNCIL OF FAiEHOPE, 4Lk3)kMA0 as follown: ;ection 1. That it is necessary and eor the best intere�4t of this Town of Fairhope that the impr--,wements above described be cons t.r-uoted. 0ection 2. That the coat of said improveAments has been eatixatd 0 4 6 by engineers waployed ftx that purpose to be One Hundred 'Nenty Thousand Dollars (.$120,000.00) and the estimated cc—st of wid improvements is found, deteriidined and declared to b a One Hundred Twe-ty Thousand I-Dol- isrs ($120,000.00) Section 3. That the _Ilan5 and specifiIations descriLbing said in- provements in detail aow on file with the Tuvj,*.i Clerk and ,,reseritly be- fore this Council be and the stime are hereby adopted and tippruved, bnd such plans end speoifications at all rea,­.aable times shall br open to the inspection of the yublio at 'the office of the Clark. The said -flans hereby -,,,dopted and .-- pproved are the plans tind speoi- fie, titans prepared by T.B. Converse & Co., !no.,k;ngIneer.­, as submitted 4 to the 'jt`.te Boacd of Health of the ;trite of Ldlabama and the fede-rul ,cublic ,ork-s dministration under i.,;ock6t #6762, together rith any plans or specifica".ions that ft-tay be developed to amplify and detail the above described plamo and spe,Afications, all as approved. or to be apprryv�;%d by the t?"to B,>ard of 'I'lealth of the 0-tateof t,.Iabama ��nd the fed.er I i-ublc <,'orks Aiaintst.-ZiLion. :action 4. That s,,Ad improvexi-Jints described in said clans E!nd a,(,;ecifioqtions tire described in r.,j general way us follows: 'Yuete3rwt�rks sty stet: Consisting of 3 well, aerator' concrete reservoir, tank rand tovier, fire pump, service pumps, cost iron pipe, distribution system, I -jewerage system, .i c,:lleoting system and disposal plant. ,�eotion 5. That for the pur".,ose of defrHying in _:art -6he cost of e ducky improvements, there by and there are authorized to be issued U �,aterwrks and sewerage jystem (Revenue) s Ad Town)f Y.t.1rhope) Bonds of under the provisic-)ns of act No. 102,, General ot:, of ,Aab�iffia, approved March 29, 1933, and the principal of end interest upon s,-,id bi-nds shall be jmyable solely from the gross reven,,es to b e derived from the oper tion of s_id and severa-ge system, as hev6inafter provided, that they be de si gnat ed 11,,�aterijo rks and jeweragt, At3yatem (Reverlue) Bonds". be 0 dated July '.'L,, I9349 be in the agr-ragate principal aiwunt •_f , iiiety One Thousand Dollars- (�1-91000.00), be of the a onominat i!)n cif One Thous-nd Dollp..rs (,'1000.00) each, be nutabered consecutively from one (1) to Ninety one (91), both -3- inclusive, bear lntere.-t at the rate of four per centum (4%) per annum, payable January 1. 1935, and semi-annually thereafter on the first days of July end January of each year, be coupon in form, and mature in the amounts and on the datos as follows-, Bond Numbers Amount Maturity 1,2 02000.00 July 1- 1936 314 1-;0 C, 0 . 00 July 1: 1937 50697 5000,00 July 19 1938 899,10 3000.00 July 10 1939 11,12013 3000.00 July li 1940 14V15016 3000.00 July lt 1941 17$18,19 3000.00 July 19 1942 20)21922 3000.00 July 1$ 1943 23, 24 j 2 5 3000.00 July Is 119" July 10 1945 29,30,31 3000.00 July It 1946 32033,34 3000.00 July 19 1947 35t36,37 3000.00 July 19 1948 3,9,39:40 3000.00 July 11 1949 41942943, .3000.00 July 10 1950 44 45'48 3000.00 July 11 1951 417:4849 3000.00 Xuly 11 1952 50,51:52 3000.00 July 1- 1953 53,54,55 3000.00 July 1 1954 56$57 .58 It";O00100 July 1: 1955 59$60i61 A100100 July 19 1956 62,63$64 3000.00 July 1 1957 65966067- 3000.00 July 1: 1958 68169i70971 4000*00 July 1, 1959 72073974-g75 4000,00 July It 1960 76877l,78,79 4000,00 July it 1961 80-81,82:83 4000.00 July 10 1962 84:851BG087 4000.00 July 1, 1963 88169,�0f91 4000,00 Tuly Is 1964 ..ection 6. That the bonds shall be payable, both as to principal and interest at the office of the treasurer of the Turin of Fairhope, Alabama, 11'airhope, Alabama. The bonds shall be payable to betirer, Provided, however, that, as to principal only, said bonds ;,-hall be subject to regist ation in the name of the holder on the books of said Tow-4 of Fairhope in the office of its Clerk, such registration being noted on the back of thn bond by the Clerk, after i-hioh no transfer shall be valid unless nade on st!id books and similarly noted on the bond, but said bond may be discharged. from such reg1st.--:,t1on by being transferred to bearar, after 4ch it shall be transferable by delivery, but it may agnin be registered as before. The regist.l.lation of said bonds rs to ixinci,al shall not restrain the negotiability of the coupons by deli :ry, :erely, amid oonds shall be signed. by the M-ayor and sealed vd, th the corporate seal of said Town -4- of Fairhope and attested by the Clerk, and the interest coupons at- tached to said bonds shall be executed vith the facsimile signature of the Mayor and said Clerk, and said offioials, by the, execution o'f said bonds, shall adopt as and ior th�:ir own , roper A gnature their respective facsimile signatures appearing on said coupons. Provided, however, that in case of any of the officers w1u)se signatures or counter signatures appear On the bonds or coupons --,hJl oanse too --be such officers before the delivery of such bonds, such signatures or counter signatures shall nevertheless be valid ..nd suff ic i, at for all purposes the sane as if they hed rei.:E'Aned in office until such delivery. All of said bonds, t-agether with the in serest theveon sh1fill ';e, ,flyable out of the 11W'ateiworks and :sewerage .system (Revenue) Bond and Interest 7edemption Fund" of the Towa of Fairhope, itlabama, hereinaftir pro- vided fe)r, and shall be a valid cl,3im (,f the holder theroof only against said Fund sin the fixed and determined aaunt s of the ss revenues of said waten,'jorks and sewerage system of said Town of Fairhope pledged to said t urid rind said bonds shall not constitute an indebtedness of said Town of FaLrhope within ...ny state constitutional provision'or statutory Section 7* That said bnds, and the coupons -=rid certificate them on appearing, sliqll be in substantial."Ly tho followinj,; fog; to -Wit: No. 1 �7 UNITIM 13TAT"a OF skMMCI' ST,,,CLiS OF ALABAUk COUNTY CF B&LDWIN TO.IN OF FAMOPE AT!?WORKS AND SMERAG3. SYSTIM(REVEM) BOND 4% July 1, 1934. $1000.00 KNOW ALL MEN BY T�WE 'RFPS)E.JTj: That the Town of Fairhope, in the County of Baldwin, ..-Ante of I 1� .. 1, 9 — abaiia hereby aaknowledges itself to owe, and for value received, 4t & -5- hereby promises to :,ay to tht-i be0rer (or, if this bond be registered, to the registered holder thereof),, the smn of One Thousand Dollars (01000.00) on the first day of July, 19_9 and to pay interest thereon at the rate of fur per centum (A%) per annum, payable se.,;A- annually on the first days of January r,�nd July of each year, upon pres,antntion and nurronder of the annexed inter -,St 0�upons as the same severally mature, both the ,irinaipal end interest on thin band being payable in any coin or currency, which,on the date of payment hereof is legal tender for the payment of ,­ublic and �;rivate debts, at the Office of the Town rreasurer In Fairhope, ,labma, rare subjc;ot to the condition and limit9tions herein set out. ,rhis series of bonds %Sgregating Ninety One Thousand Dollars s (..9,;,9000.00) is issued by said Town of Fairhope under the 1-rovislons of Pict No. 10P,, Gc�neral acts of Alabama, approved '11arch Z- 9 1!.339 !ud in full compliance -vith the exiting Constitution andthe Statutes of the _;tate of Alabana, and pursuant to nnd in confor;,Aty with an ordi- n9rice duly enacted by the Tml.7n. Council thereof on the 14th day of August, 19340 for the pur.),)se of defraying the cost of constructing a v.,aterworlecs and sewerage system in and for said '10-i,.m of Fairhope, which ordinance is now in full force and effect, and feferanoe thereto is hereby made with the same force and effect as though set out herain in fall. This IaDnd is -payable, only from a special fund identified as the 111 Waterworks and sewerage (Revenue) Bond and into rest Redemption 1'Jundiv of the Town of Fairhope, ,drtbama,, into which the.i-e are to be paid from the gross r­.,venaes to be derived frum the operRtion of the said vntear- works and sewerage system fixed sums sufficient to pay x,,jhen due the principal of and interest upon the series of bonds of which this is one, :.hick fund Is to be apllied solely to the payment of the atdd principal and interest and neither tht-, i,;ond nor the Issue of which it forces a part oonutitute an indebtedness of slid Town of ntirhope within any constitutional provision or statutory limitation of tho itete of Alabama. Said Town of Fairhope covenants and agrees that it will contin- ,17 uously operate said waterworks ad seerernC5e system, and fix nnd main- -6- tain such rates for the services furnished by said waterworks and sewerage system as .shall be sufficient at all times to Provide for the payment of the interest ul,on and principal of this bond m d the issue of which it fortis a part as m d when the sarae become due and payable, to create a "Bond .and Interest Redewtion Tend" therefor, to privide for the payment of the expenses (-t administration and operation and such expenses for the maintenance of the said waterworks and se-seralge system necess-iry to preserve the sw.9 in good repair and working order, to build up a reserve for depreciation of the said waterworks find sewerage syste4L, and to build up a reserve for improve- ments, bettermc.-mts find extensions to the said waterworks and sewerage system o her than thdse necessiry to maintain the same in good repair and working order. Under authority of said I'lot and by the ordinance authorizing the issuance of this bond, there has been created and granted �,.nd in f ovor of the holder or holders of this bond and the issue of ;,?Yhich it forms a part, and to end. in favor of the holder or holders of the coupons attached to said bonds, a statut.-ry mortgoge lien, which Is hereby recognized aig valid find binding on said watrivorks and sewerage system, and said w­.terworks and sewerage system shall vemain subject to sadd statutory mortgage lien until the payment in full of the of and interest on this bond and the issue of which At forms, a part. 0 This bond may 1). re,istered as to jt­.Tincipal only in the w3me of the holder on the b­)1oks of said Town of Fairhope in the office of its Clerk,, such registration being noted hereon, by said Clerk, after , b� ioh no transfer shall be valid unless r-aade on said books and similarly noted on the bond, but it nuty, be discharged from such r ogi strstion by being transferred to bearer, after w hich it shall be transferable b y delivery but it may be again; . registered, a;; before. The registration of this bond.as to .71�rIncipv-1 shall not restrain the negotiability of the cou- pons by deliv,­=ry merely. The principal of -,nd interest oa this and are exempted from ny and all State, County and municipal .-ond othor taxation whatsoever und,,*.,,r the laws of the ;Aate of _Jab- ma. By fiat pro'vidinf,,; for its issuanoe this bond is declared to have all of the qualities of negotiable in struments under the Lave Merchant and the Negotiable instrumlnt La,,�,, and 0 -7- to be a legal investment for executors, administrat(irs, t_cusVes and other fiduciaries and for savings banks and insu.cance companies or- Fanized under the la�7,s of the State of Usbama. IT IS T11,011 Y CCOERTIFIED9 RISC U 1J.40 that all acts,, con- ditions and things required to exist, hapv-en and be perfornied pre- cedent to and In the is, uance of this bond, have existed, have hap - period end have been .,,erforiaed in due time, form and manner as required by law, and that the indebtedness evidenced by this'band, as securvd and authorized to be aid, is in no way affected by the liAtat ion provided in :,ieotion 225 of the Const*itution of the state of ,.1abma, rirr by any other provisions of said Constitution, nor by any limitation provided by 'astute of the StrAe xxf tilabama, ond thi-it a suffici,,nt a- mount of the grosz revenues of said waterworks and sev-i'erage synoem has been pledged to and will be setaside into said "Bond and Interest °iederaption -Flund", by said Town of 17airhope for the Prompt payment of the Principal of and interest on this bond -nd, the isoue of wiaich it fo =s a 1) art, IN ',.-,!1TATES5 1VH-11,'R:9OF, the Town of Fairtiope in t)e tAnte of -,19.baas has caused this bond to be signed by Its Mayor and its c.­r,,porRte seal to be hereunt(., affixed, attested by the Town Clerk �,nd the coup'ns hereto attached to be executed with the facsimile 31gnptures of t ho Mayor and said Town Clerk, which officials, by the execution of this bond, do adopt., as and for thkAr oven pro3;)er signature, their respec- tive facsimile signatures appearing on said aoirpons, and this bond to be dated the first day of July, 1934. aZAL AT T ] ST T79 Cle—rT. ( FO F44 C F 0 U I :' NS ) Mayor No. ''20,00 On the first day of 19_, the Tovin of Fairhope, in the tate of Alabama, will pay to b<-,-arer the rum of Twenty Dollars (�'�20.00) in any coin or currency 'which is then legal tender for the T" - payment of public Find private debts,, at the office of the Town Treasu- rer in Fairbope, Alabama, out of the 'IP.aterm;(-%rks and :sewerage :system (Revenue) Bond. and Interest Redemption Fund" of the Toy= of Fairhope, Uabama, b-,--in.g six (6) months' interest then due on its waterworks add sewerage Revenue Bond No , dated July l­_;t, 193A. This cou.,pon has been Issued under the , rovI-sions of t16ct Ijo. 102, Geri -oral acts of -, laba via approved March 29, 1933, rInd does not constitute, an indebted c ss of said Town of Fairhope v.,ithin Lz y jtate constitutional T",rovision or statutory 11 itation of the 13tate of .,Iabfuas, T _E; I 3T .- Tcmn Clerk. Mayor (PROVISIONO3 VR REGIanl I.,tITIL0N) the request of the holder, the within 13ond is hereby converted Into a registered b,,jnd, but as to principal only, and shallbe payable (as to principal , nly) to the registered hold r or to his "Legal repre- sentative, -,,,,rovided that it may be discharged from such r egiatreti,,-.n by,baing trnrISIIorred to bearer, i.,,ftGr which it shall again be trans- forablo, by delivery, Lt .may, howa-7-elr, be fagaia re(4istered a.,� beVxe. Dated Rt_ FairhoRg lab= 0 Th I s day of Date of Ref'i ;tration In whose m,�irae r,.-,t�ist;ared ..Asnature of 1.31k. (F'!.,RM OF C]MT IFW,,Th, OF jiTTORN.W GXNEML M.- OFFICIO YiGAP. C AVII ,It NXP uF "ME STATE OF ALA- EAUAq to be printed on the beck of each bond) OFFICE OF THE XfTulUilff GMIARRAL EX-OFFICIO 6(M, COU- UJOSIONTR UIT ME STi.T& OF id.ARAIA. :'ontgonery, ,Iabwas, 19—. I hereby cortify that i have exa-mined a certified copy of the re,.ord of Proceedings taken prelim6nary to and in the Issuance of the within bond and the series of w,-Ach it forms a part; Viat such pre- ceedings and such bonds show lawful authority for the issue of said bonds, and that said bonds ore issued in accordance vfith iwt. Nol 102, v -9- General Acts of .alabnma, approved Vlarch 291, 1933, rind �Ath the fomrs and methods of r)rocedure prescribed and. provided by me for the issuanod of bonds of like -kind; and that said bond Is valid and binding olkligation according to its tenor rind terms, and, under the �,rovisfons of ,3ection 35, of s,id .. et. odl 102, requiring.* the certificate of the Bond Commissioner of the ..Afite of ,.labarz thereon is inec.,ntestable in :any co-urt in the Ante -f ..,.labama, unleso ,uit thereon shell be br:.,upht in a court having, jurisdiction of the some u,Lthin thirty (30) days from the date of 1­,his 9jr.,roval of said bond appearing in the caption hereto. t t -Officio Bond Commis; inner of the of _slabama. 'leat'I on S. That there by and there are hereby esta;glisiied rates U for services furnished by acid waterworks and sewerage sy4stem as 1011ows: F-1aterates .Ax roome or jess.— ;.,Aditional rooms above Tub or shower bath..6.064#&O.0.6 .... 0#00 ..... :*a '-.dditlonal shower or tub bath..... • .....*..0041.0 :'.ddl*%'*: ondl toile-ts, .......... Outside ;�'.dditional ou side faucets,,,,# ... 1'1e.ter rates lioxt 2 M. Next 5 I. Next 38 Y. Gallons ...... Next 50 101 or more M. Gallons _XH&WLE OF S34-KRAGE RAIHS. Per Coitnection ............ ,J2.00 per year .75 per ye�,,�- each 5.00 per year,one 2.25 per year each 3.00 per year, nne 2.25 per year each 3.00 per yef.T, one .75 per year each .30 per U, . Gallon .2b per M. Gallon .20 per k. Gallon .18 per M. Gallon o15 per M. Gallon *12' per M. Gallon ,�.19, -00 per year. P No free service sh'all be furnished to tht., Town of F,-Arhope, aid. the reasonable cost and v�..;.liie of xi;i servici, rendered to the Town Gf Fairhope by the said waterviorks and serserage systera (Including fire hydrant rentals) sh 11 be oharged against the Tpvn of ria1rhope and shall be paid for by t monthly frcm the oorporote funds thereof as the service accrues, as i'movided by .,-ection 18 of said %A)t. 0 & 6 if, at any time, the rates fixed by this ordinance shtill not b sufficient to provide for the payment, T4hen du-, of th interest upon and principal of the bonds herein authorized to be issued, to create the "Bond and lnt*;rout Aedemption Fund" escribed in this ordin�inc�3j to provide ior the ,payment of expenses of administrations nnd opera, tion end such expenses for rinintenance of the wotervgorks and sewerage system n.-aeosary to proserve the same in good repair and vrorking orderg to build up a reserve for depreciation of the terlorks and sewerage system and for improvementa, better-aants, and extensions thereto other than those necessary to ,,,iaint,.,Ain the same in good repair and working order, the Town Council of' the Toun of PArhope hereby oovenaWs and agr-­ez that it will, at Once, increase the ratev fixed by this ordinance, and will maintain ..uch rates for Sler'.1ces frnished by such watervor,.s and sewerage systen-, so t.1117A the mae shall be sufficient to provide adeCtuate revenue., for said purpose.s. �".t shall be and it hereby is made the duty of the proper officers of said Town of F-Arhop,) to install a water meter for each user of watc,r and for each additional user at the time service is installed or as soon thereafter as feasibl,-, vilich said metej, shall be 1ept in good state of repair and sha 1 be read on --a each month by a duly conatit,ated agent of sf)id Town Of F�Arhope and such meter reading shail con$titute the "basis for computing obarges under the foregoing schedule. Bills for water .-service; shall be rendered cacti month and any consumer failing 0: refusink,� to pay his bill . 'Ahin. ten (10) days subsequent to its rendition, shall be denied tho, use of the water from said waterv,:rks s stem, and it is hereb-,,,.nstituted the duty of the said Tour of Fairhope to shut off the water supply to any such con- stuaer until ouch time as all past due bills, together witli a service chtirge of one Dollar ($1.00) for'restorntion of water service, are paid. it shall be and it hereby is rode the duty of the proper officers of sari. Town of Fairhope to inspect th,, ,� -1 J; remises of each oposed user of se;.,-erage service before a connec,;ion is made to thcl sev,erage sys- tem tnd thereafter to zwke inl­;pectlon 0-k the rremisgs of all users of ,-awerage service not less often than once oach year anO more fre(.-I,,ently i, Shen necessary, to detennino the number rand type of plurstbig fixtures installed thcrain and connected to said se,..+erage syston for the pur- pose of fjzitq,,; rates and computing charges under the foregoilg ll schedule. Bills for an-werage service shall be rendered each month, payable in advance, --ind any -ousumer fnilin� or refusing to pay his bill ,, ithin t)n (10) days -u�,:at to its rendition sht-11 b dk:snied the use of sewerage system,, �ind it is 11creby oon.1tituted the duty of said Town of Fairhope V) disconnact the Premises 0. sucti consumer from the sewerage syst,,,,m until such time cis' all past due bills, to- ther It -. service, charge of Cie ',)ollar (,'1.00) for restoration of sewerage service, nre Quaid. Section fj. That it is hereby made the duty of the Town Clerk of said Town o.0 Fairhope Vi render bills for water - A sowerage service and all other charges in connection therewith, and to collect all moneys due thereon. section 10. That each, ail and every of the funds nand moneys derived from or incident to said waterworks and sei,-.eraga system shall be held by s-aid Town Clerk in a fund separate and apart from his private funds and separate and apart from ell other funds of the Town of Fnirhope, and all of the saris ;,'"Ithout any deduction, >hall be delivered to the Custodian hereinafter provided for, not more than ten (10) days su'.)n, went to the recoipt of sarae, and at such more frequent inter.,ils as ra-y� -Crom time to tiwa, be prescribed by ,. ordinance of this Town. section 11. That prior to t1i receipt of any funds derived from the operation of saic.; waterivorks and set:oer,---.ge systom the Town Clerk of said. Toun of Fairhopo shall, in every year, execute a bond in the penal sus, Of at least double the amount of any such funds that he will have on hand all", any one time duri.ig the your, which said bond sell 11 bo conditioned upon his faithful accounting for such funds and which l said bond shall be .3abjeot to the approval of the Idayor of kiaid Tuwn of FairhopQ. Sec Lion 12. "Phat the ttierchangs `Iational bank Of Mobile,, Alabama, a bank or trust, company duly qualified and doing business 1,.ith the '-ederal deserve jystm and member of ,tate (jf -,tlabama, a metiber of the the wederal Deposit Insurance UorporiAionj havin signified in writing, to the Mayor of said Town of Fairhope, its acceptance of the custodian ship of the ;gross revenues tbe cierived the thop sration of said wiiterworks and sewerage ystem, -.nd any other funds o" the Town of 'UPilrhope sypplemental to the L. eration and Ylainteamnen Fund, the Depreciation Fund and/or the Contingent Fund hereinafter described, as evidenced by written contract dated 'A::t4 . U approved by the Town Council b resolution adopted 19 said Meruhants :,4.-ational 13ank of Viobil , Aldbwaa, is hereby designated Custodian of :-such revenues and other fund All of osid gro6s revenues and other funds as in this 4 rdinan@e rovided for be deposited with aich Custodian and bo set apart by such '-"ustodian into the approprinto Vund of funds d4.6VIated in ._.Auction 14 of thA ordinance, pursuant to vrritten instructions from such Town of Fairh-..Pe which instructions shall be given monthly, or oftener if necessary,, and shall be in accord Ath the terias of this ordinance and said ltot,, and each end all of sz.Ad desitWated Funds shall be impressed with a trust in ac,.,ord 4th "J'oetion 24 of said !.ot. ,"ection 13. That In the c.,vent the Custodian Ywmed in this ordi.- nanoe shall become insolvent or be in the process of dissolution, the Town Counoil hereby undurtakes to appolut a successor to s id Custodian at once nth all of the rights, poArers and duties )rovided by lii,r for the Custodian designated in this ordinance, jection 14# That from and after tee deli Cary of any bond issued urk,er, the provisions of this ordinance the said water orks and se-er g- system of said Town of Fairhope .ftail be operated on a f iscal year basis comencing on July lst of each year and ending on Jun,-,3 30th of the following year and on that basis the gross revenues of said water- works rand sew ernge ­.ystew are hereby pled�.,; d and ordered to be set aside and paid monthly into separate and special funds as follows, to -wit: There shall be and there is hereby created a Fund designated 11�i)iter- works and jeTerage (Revenue) Bond and Interest '.7.edumption Fund"' of the Town of Fairhope, Alabwia, (hereinafter called the "Bond TFUnd"), arml there are hereby pledged and orde-red to be set aside and Psid into said Bond Fund (monthly) from. the gross revenue of said iwiterwoVks and sewera-ge system, sufficient ;;uras to raise the follovdng yearly nmounts, naviely.- For the Fiscal year For principal For Inturest Total end-la—g- z-, July ist: 1935 00.00 43640.00 :�?z t ,40. 00 1936 2000.00 3640.00 5640.00 1937 2000.00 3560.00 5560.00 1938 3000.00 3480.00 6VO.00 1939 3000.00 636N00 6360,00 1940 3000.00 3240.,OU 6240.00 1941 3000.00 3120.00 6120,00 ror the Fiscal near For -,)rinoipal For Interest Total jEndIns: 'July Ist: 1V42 �Z000. 00 �3000.00 6000.00 1943 30U0.00 2880,UO 5880.00 19" 3000.00 2760.00 5760.00 1945 3000.00 2640.00 5640.00 1946 3000.00 2520.00 5520.00 1947 3000.00 2400.00 5400.00 1948 3000.00 2280,00 5280.00 1949 3000.00 2160.00 5160.00 1950 3000.0U 2040.00 5040.00 1951 13000.00 115 20. 00 4920.00 1952 3000,00 1800.00 4800.00 1953 3000.00 1680,00 4680.00 1954 3000.00 1560.00 4560,00 1955 3000.00 1440.00 4440,00 19$6 3000.00 1320,00 4320*00 1957 1200.00 4200,00 1958 .3000.00 3000.00 1080.00 4080.00 1959 4000,00 960,00 4960.00 1960 4000.00 800,00 4800.00 1961 4000.00 640.00 4640*00 1962 4000.00 480.00 4480.00 1963 4000,00 620.00 4320.00 1964 4000.00 160.00 4160.00 irovided however that each {-f the same amounts shall be Inoreov­;d by twenty per centum there -of until the =_ount of such excez�s paymetts shall at le,..ist equal the amount of interest on and principal of the bonds which will mature ;ithin the succeeding fiscal years. The amoount by which any such payuw-nt in any fiscal year exceods the aggregate amount of interest on and principal of said bonds be. - coming due in such year shall be held in said Bond %nd as a reserve for contingencies and used solely as iterein provided. Provided, how- ever, that no further poyments need be :_md6 into said Bond Fand after such twount of the bonds shrill have been retired that the aar;unt then hold therein (including the reserve for contingencies) is ec}ual to the entire r3mount of the interest and rrivicipal tiAat viill balrayable at the titsie of the j,,aturity of all the bonds then remaining outstanding. If in any fiscal year the Town of Foirhope for u ; reesaAi s hall Fail to set afart and pay into said Bond Lund the full hiaount above stipulated, then an amount equivalent to such deficiency rh 11 besset apart and paid into said Bond trund froin the first available gross revetiues of the follow1nL9, fiscal year or y&irs, and same sly. 11 ire in addition to the mmount otherwise herein provided to be so set apart and paid into said lond rund 1.,uring such succeeding yeer or yearse If,, for any reason Town of Fairhope shall fail to make any, aforesvid, during -my fiscal Yea ouch j :cement into said 13ond Fund, as -14- any sums then held as a reserve for contingencies shall be used for the paTment of the interest on or principal of said bond becoming due in such fiscal ,year oil vi'llieh cords there would othrrwiso. be de- fault, Uut such reserve shall be reirabursed tue refor f rora the ffirst; available jayment ijade 'into said Dond wIvnd in the following fiscal year or yea-,-s in excess of the requiredpuyiaent for the then current f isoal year. -11 moneys hold in said Aond iund in excess of a am aqu,%l to the total of the n(xt anturiae, semtannual it tore8t on outstanding bonds issued under this ordinanou and any principal tuaturities thereof pay- able ithin a year from the date of calculbtiort shall be invested by said Custodian as Trustibe for the Town of Fairho-De in direct oblige- tions of the United 3tnte:3 (1)vernment so far as practicialkle and .1113r such exceiis, not ,3o Investod shall be continuously secured by a valid pledge of at least an equivalent principal amount of direct obliga- tions of the United atnttes Government, provided, however, that nothing herein shall 11�revent sale of a sufficient amount of auch obligations in th-. everit :,hat it ;shall rove neeess,4ri to draw upon staid reser-ire for contingencies. .'Vrsu.,nt to section 22 of said act, there are herei)y areated funds designated reppeatively, "Oper-ition rind I'J'Aintenance 'Fundvi-, ,lijepreciation nmdIl and"Gontingont Fund". and there are hereby find ordered to be set aside and -..a Id into the siA it funds a)ntilly in a?-ich A.scal year froia the remaining, Bross revenues and in the fbIlowing order: (n) t sum sufficient to provide for the payment of all reasonabl- expenses of administration, open-tion --'.nd such expenses for maintenance as may be reasonably neoeso ry W preserve the system in good repair oInd Aorkiag order, such fund to be desigwted ''Operation ---find NaintEm- arice FUnd", (b) L =um sufficient to build up a reasonable reserve for de- preciotion of spid system,, such fend to be designated Depreoiati(in ftnd:l ; (a) 4L sum sufficient to build up a reasonable resorve for in- prove;ii,-�nts, betterments rind extensions to such systelr, other tb.,,.-.,,n those,.,,� -15- Ll expenses which are reasonably necess.-:.-ry to maintain the same in good repair and working order as heret. ribefore ,:rovided. for, such fund to ,ye designated "Contineent Fund", such fijnds to be used in (iccordaaoe with the re, uIrements of ,action 22 of Jaid :,,cte S I ection 15. That the Town Clerk of said Ftirhope shall install !ind maintain a proper oystem of books of records .and accounts (oppa- rate from. All other records and accounts) ,.Ind shall erforn, such duties in connection therewith as required by .,act',,on 30 of said !.ctlj; and the Town of Fairhope will furnish to the Government, so long as it holds --ay of the fonds, and to arty holden, of any f the Ponds at th(z, time outeW, nding, at the written request, of such holder, not --iore than thit-ty days after the close of each raunth's fiscal ;�-eriud, complate operation and income st_,,tkx1onts of the froject in reasonabla detail for slach -period, ..nd, nQt m)ro than sixty days Lfter the close of each fiscal year, complete financial st­,teiaanLs of the waterworks and sewerag system and the Town, for such year, certif ied by -he Town auditors. oaction 16. That it is her€:by covenanted and agreed by said To—nn of Fairhope with the holder. ,r holders (,,,f the bonds herein authorized to be issued or ony of the*t that such waterworks and sewerage system shall be ,onstruoted with all reasonable disf)atch, that all moneys re- ceived froal bonds issued pursuant hereto, exclusive of accrued interest shall be applied solely to the coasti,uction of ,, id wvtarwork-s ond sewerage system and neoesstAry ,-ippurtesnances, Including ,my engineering, legal -and other expen,C;es incidental theretb, provided tjhatr any unexpended balance of the 1. )rocaeds of the sale of :any such bonds re- maiaing after the completion of the construction of said way tervjork_s and sewerage system shall be preidimlediately into the Bond Fund provided for in this rdinancs, -end the sw;,e shall be used in accord with ection 16 of said _,ct. Section 17. ThI--t it is herr:.,by further covenanted and agreed by the Town of FaIrhope with the holder or holde-L-s f the bonds herein autho- rized to be issued that it, will maintain said vinterworks and sewerage system In Cord condition and. operate the ,,,: me in an efficient manner and will perform all duties viith referenco to said waterworks and. see- rage system required by th- Constitution and Stututes of the .tote of Alabama and that it will, :3o long as any of the bonds are: outstanoing, maintain insurance on the syst-,n for the benefit of the holders of the bonds of a kind and in an amount which would usually be carried by private companies engaged in a similar type of business; and the Town of Fsirhope hereby irrevocably covenants, binds cad obligates itself not �P to mortgi)ga, pledge or otherviis,_ encumber the Project or any part there- of or any revenues therefrom ond will not sell, lease or in -my manner of su .-h waterworks < nd sewerage systaji, includinpl, c-n y extensi on or additionsthat may be. made thereto, until all of the bonds issued her,under slit -ill have bl-1:1en cid in full, both principal :and interest, or unless and until provisions shall have been made f r the full pe�- ment of the rincipal r.nd intereot (in said bonds.- x-eotion ln. Thet any holder oV any of said bonds or coupons is- sued hereunder may eith­r in lar or in eq-ldty, by suit, action, Taan- damus or other Proceedings �:nforce of compbl perforiw3ace of all duties and undertaking8 required or provided by this ordinance, inoluding the making and collection of sufficient rates for that purpose and the ap- plication of the gross incomo and revenues of said viaterworks and sewerage system. The holders or purchasers of not less than 25 per cen- turn of tho bonds shall have the right at all tilues to inspect the sys- tem and all records, accounts and data of the Borrower relating thereto, and the Town of Fnirhope shall furnish to the original ]purcha6er or purchasers of the bonds and to any ,olden or holders of 25 per oentum other in:CormationAwo-4 of the bonds outstnuding such financial statements and/date relating to the system and the 'Down as at any time may be relquired. Section 19. Th6tq as -provided by Jection 8 of said 21%.Ot, Lix the further protection of the holders of the bonds i,erein authorized to be issued and the c,:upons thereto attfichedg a st,itutory mortgfigl, Ilea upon said waterworks and s-I,.!v,(,y-�,.Re system nd the appurtenances thereto to be const,lucted with the -,,roceddsof the said bonds is here created and granted to �nd in favor of the holder;,--,, of said bonds and of said coupons and each ;f them vhioh said statutory mortgage lien is her,,.;iby recognized and dablared to be valid end to nding upon the Town of FnirhopO and ali the Property constituting the waterworks and sewerage system of said Town of Fnirhope so to be constructed, as provided by lay;, ,AMd -17- shall take effect immediately upon the deliA ery of any bonds autho- rized to be issued under the provisions of this rdinance, luad holders of any of said. bonds or of any of the coupons reoresenting interest accrued thereon, may, either at law or it equity, b y suits, nctioh, mandamus or other oroceedings, protedt and onforce the statu- tory mortgagellien hereby conferred, and may, by suit, action, man- dpaqus or other proceedings enforce and compel perfomance of all duties required by said Act, including the fixing of sufficient rates, the collection of revenuethe proper segregation -f the revenues of the waterworks and sewerage system and the 'proper ap)liciti-,nn thereof. Provided, however, ) that said statutory mortgage "Lien shall riot be construed to give any mach bond or coupon holdeiouth.,z),lity to com- pel the sale of such waterw.rks and sewerage systeij or any part thereof. If thereVeany default in the payment of the rincip,-tl of ;End interest upon any of said bonds, ony court having juriadAction in any proper action may appoint ,, receiver to administer and o>)erste the waterworks and sewerage system so encumbered on behtilf of the "11own of Fairhope with povor to fix and charge rates Pnd collecG revenues suf- ficient to nrovide. for thr, --­yment of a�ny bonds or other obligations outstanding agairist surd ,,jt)terworks and sewerage systeiza and for the paymcnt of the expenses of open ting and maint,-:.ia_;.:ig the warue end to apply the Income end revenue of s!,,.id waterworks and sewerae system in confomity nvith said _ct and this ordinavace. Section 20. That s9id bonds shall be sold in r, Ach manner t�nd at such ti;.,aes as the To�.m Council of staid Town of F,,-13:i1op9 shall here- afterdeteriaine. inotion 21. Thht the Town Clerk shall deposit all raocrued interest -1 wideh he received frp;L tl�e sale of the bonds at the time of the pay- ment therefor and any payment on account of the Grant, which may be made under the provisions of the Loan j*reeuient between said -2,wn of F,t)irhope .)nd the United States of Aaa.eriaa, into the 13ond and properly upon the receipt of such ac-rued interest or such T)ayment on account of the Grant. He shall deposit the, reimlaing proceeds from the sale of the bonds (whether such bonds are .--old to the Governmc,nt or other purchaser or t-,urchaners) and the part of the G,-,,,mt made by pa�Taent of money under the provisions of said Loan ;'.gr­em nt, )ro4uljtly upon the receipt of such ,rooeeds of paymento in a separate account or ac- counts (1,ach of such separate accounta herein cal-l"Led v "construction acoount"), in m bank or banks hich are members of the Federal Reserve System and of the Federal Deposit Insurance Copporation and Which shall be satisfactory at all times to the 'idmiriistrator. �3ection 22. Tit the bonds herein authorized to be issued and from tlaIie to IiAme outstanding, shall not be entitled to 'priority one ove�� the other in the application of the revenues of said waterworks and sewerage systaia ur with respect to the st...tutory morti,;P-ge lien securing their pa)rment, regardless of th�-L time or ti..,es of their is- suance, it being the intention of the Town of Fairhope that there she 11 be no priority among the bunds authorized to be issued under the provisions of this ordinance regordleas of the feet that they may atually be issued ..nd delivered at different times. jectionM. That ,iiile any of the bonds hereby authorized are out- st,onding, the Towu of Fairhope will not issue any additional bonds pay- able from thO revenues of the eta id waterworks and sewerage system un- less the lien of fiuch ':)undo on the revenue,,3 of such system as- improved or extended is made junior bInd subordinate in all respects to the lien of the boyr's authorized by thl.s ordinance. This provision shall inure to the benefit of Y,nd be enforceable by any holder of any of the 'oonds authorizbd by this ordinance. 1�3eotion 24, That if any aeotion,, paragraph,, clause or t,,rovision of this ordinance shall tie held to be invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the rej-,iruning., provisions of the ordinance. .,ection 25. That ,Al ordinance ., resolutions ind orders or ;-arts thereof in conflict with the provisions of this ordinance, to the ex- ter9t of such conflict, are hereby repealod. Section 26. T"hat it iri hereby deemed rind declared uAnecesa':ry to make publication of this ordinance, and it shall be in full force Ond effect from and immediately after its passage. It was moved by - and seconded by that all rules of the Town Council of the Town of Fairhope, Alabama, which might prevent, unless suspended, the final passage and adoption of said ordinance at this meeting, be and the same are hereby suspended for the purpose of permitting the final passage and adoption of said ordinance at this meeting. The question being upon the adoption of said motion and the sus- pension of such rules, the roll was called with the following results: AYES: NArS: The mayor declared said motion carried and such rules suspended. Councilman then moved that said ordinance be now placed upon its final passage. Councilman seconded the motion, The question being put upon the placing of said ordinance upon its final passage, the roll was called with the following results: AYES: NAYS: The mayor declared the motion carried. Councilman thereupon moved that the said ordinance be finally passed and adopted as introduced. Councilman seconded the motion.- The question being put upon the final passage and adoption of said, ordinance, the roll was called with the following results: AYES: NAYS0 The mayor thereupon declared said motion carried and the ordinance firm_lly pessed.and adopted. The mayor thereupon signed said ordinance in approval thereof. The. minutes ,gf : th2 precious meeting viere approved as read. The follwwing bills were allowed; Fairhope Coal & Supply Company Supplies l'/.72 Ruffles & Son Sang aino�Flectric Co. °`""'�"" g Lab. & Mat. supplies d-d7 10.40 Forster' & Sons RaymorU-Stapleton Overtime Gas & Oil Overtime 562:.25 4400 Fank McKenzie "` Overtime 3.20 Nick J. Ludwig '`' Lab. & Material d.00 Fairhope Courier Publ. & Sup. 20.34 Gill Printing & Stationery Co supplies 11.90 t Jone RCA Victo Agency supplies 1.50 H. l� am H. C•nder surveying 12.00 Turner*'Supply Co Surveying supplies 5.OU 205.04 Ray Roll -for July M. F -Northrop Mayor 445.00 Gladys.,;Wwell Clerk p 70.00 J. H. Titus ,.y Marshal 75 . UO M. 0 Berglin Councilman 3.00 P. A. Frederick a' 1.50 C. A. Gaston 3.00 Howard Huge 3.00 J. 0. Stimpson *2 3.00 E. D. Swift Wa`:.chman 30.00 Walter Lowell Police Duty 3.50 J..L. Keller Road Dept. 75.00 Guy Wilson " It 36.62 Harris Rockwell it to 25.3'1 Aurie Lymous It of 42.45 R. V. Keller " 2.50 Dave Stapleton " " 22.00 J. P. Bailey Engineer 95.00 Raym,nd Stapleton it, 95.00 Frank McKenzie if 75.00 R. P. Greggs it 65.U0 W. F. Laraway line York 0.10 Bheldon Keller if it 2.25 J. A. Patterson Wharfinger 23.86 Chas. Bishop Golf 32.00 Richard Jackson it 25.00 J. B . Tiffany Parks 10.00 Walter Lowell Parks 12.50 Guy Wilson St. Imp. Project 4.63 Chas. Ruffles If it n 12.50 Harris Rockwell it " of 4.63 R. V . Keller "' " of 3,20 Aurie Lymous it 5.55 0 A communication from Mr. H. V. Peters offering to sell the build- ing or, the Golf Grounds to the Town for $2U0.00 was read. Ciuncil- man Berglin madea. motion that the Town accept Mr. Peters' offer. Motion was seconded.by Councilman Frederick and carried. Motion by Councilman Gaston seconded by Councilman Stimpson that M. Dyson & Co. be permitted to change the curb in front of the Post Office building and Fairhope Coal & Supply Co. building-, as discussed, carried. It was moved b Councilman (/ Z�.caG Y .r, _ and seconded by j Counc i lman 'fit . Ch h . —.that the meetin g adjourn. Motion carried ATTWT: Mayer ICA The Town Gouncil ofr„ thQ Torn of i`airhope, Alabama, 'can- �d yened in regular' session in the Town of Fairhope, at the Town Hall on July 24, 1934, at 7:34 orclock P. M", The meeting was called to.order by Mayor M. F. Northrop..'' s .The Clerk called the doll' Those present and those ab- sent were aslollows: 1 Present:, . F. Northrop, Mayor; and C. A. Gaston, Howt d . Rucge, J. -4..Stimpspn and M. 0.-Perglin, Counoilman. d 2 ` Absent: P, A. Fredericko The following ordinance numbered J1q and entitled "An Ordinance Approving a. Loan and Grant Agreement between, the Town of Fairhope, Ala ama,r and the United States of rieaand author- izing its Execution" was introduced by k� read in full by the Clerk and considered by the Council: Ate: ORDINANGE N0. AN ORDINANCE APPROVING A LOAN .AND .GRAITT AGR�ENT BETW3EN THE TOWN OF FA.IRHOPE`, ALABAMA, AND THE UNITED STATBS - OF t .AHERICA, .AND AUTHORIZING ITS CUTI CK O BE IT ORDA4W by the Town C oust -- ,Qf the�: Town of Fair hope, .Al,abam Section 1.• That the Loan and Grant Agreement between ' the. Town, of Fairhope, an incorporated town in Baldwin County, Ala- , ' bama' ,a4dthe United States ofAmerica, under and subject to the terms of- which the United States will by loan and grant not exceed- ing""in "the aggregate the gum: of $120,"000.00 aid said Town of Fair-. hopes in Financing the oons,truction of water l►orks and sewerage, tem,` a,, copy of which Loan. and Grant Agreement, is filed among the ` 7" j m publlc,�.Tecords of the Town of Fairhope., in the office of the sai8 • �' Town of Fairhope,"' and is hereb"' ordered to �e recorde"t length in the Minutes of the Town Council as a part of the Minuaej of its meet., ing held July 24,E 19340 the same to be marked Exhibi0"A", and whie ` 4 Loan and Grant Agreement is hereby made a part hereof, ;be,; and the r eame is hereby in all respects approvedsit having been read at length, Section 2. That the Mayor, M. F. Northrop, of -,,,,said T� of Fairhope, be` and he is hereby authorized. and directed.:�to exect'C 'such Loan and Grant Agreement in triplicate on" behalf .oche Town}. of ' Fairhope,' and the Clerk, Gladys Lowell, of said°'Towrif Fair hopet'j bpi and she is hereby authorized and directed to impress or. .h affix the official seal of said Town -of'Faiihope to each of r said ,�, a. 'three copies of said Loan.and Grant Agreement'and to attest such it Section 3. That said Mayor, M. F. Northrop, be -and he...Y w - f 5� g lu is hereby authorized and directed, to forthwith forward three copies of said Loan and Grant. Agreement as executed on behalf of said Town •, of Fairhope to the Federal Emergency Administration of Publie Works; Washington, D. Section C That the said Mayor, M. F. Northrop, and. Clerk;' Gladyn,Lowell, be and they are hereby authorized and empowered on behalf of` said Town -of Fairhope, to request, and .consent to, modifi- cations of or thangea in said Doan and Grant•.A.greement with refer- enee to the designation, date, denominations, medium of payment, places of payment, and registration or conversion privileges of the bonds to be issued thereunder in order to comply with the require- ments • of law and of the proceedings taken for the issuance of said bonds, and. to execute in the same manner as said Loan and Grant Agreement any further instruments that may be -found desirable in connection with such modifications or changes. -Section 5. That said Mayor, M. F. Northrop, be and he is hereby authorized and directed to forthwith send to said Federal Emergency Administration of Pablic Rorke two certified copies of this Ordinance and two certified copies of the proceedings of the. Town Council of the Torn of Fairhope in connection with the adop- tion of this Ordinance, and such further documents or proofs .in connection with the approval and execution of said Loan and Grant Agreement as may be requested by said Federal Emergency Administra=_ tion of Public° Works o It was moved by and seconded. by v , that all. rules of the Council which might preven ,unless suspended, the final passage and adoption of said Ordinance at this meeting,' be: and the same are hereby suspended, for the purpose of gexmi.tting the final pass** age and adoption of said Ordinance. at this meeting, The question being upon the adoption of sald motion and the suspension of such rules, the roll,was called with the follow- ing re cult I Ayes: M. F. Northrop, Mayor; C. A. Gaston, Howard Ruge, J. 0. Stimpton and M. O. Bergli.n Councilman. Nays: Pone; the Mayor declared said motion_aisd and such rules -suspended. (mac.77V then moved that said-0rdin-� Y ante be now placed upon its final passage. secondod the motion. The question being put upon the placing of said Ordinance upon its final passage, the roll was called with the following re- sult: .Ayes: M. F. Northrop, Mayor; 0, A. Gaston, Howard Ruge, T. 0. Stimpson and M. 0. Berglin, Councilmen. Nays: None. The Mayor declared the motion carried. K �r thereupon moved that the said Ordinance- 9,.f 11y passed and adopted as introduced and read, seconded the motion* !the tuestion being put upon the final passage and, adoption of said Ordinance the -roll was called with the following result: Ayes: M. F. Northrop, Mayor; C. A. Gaston, Howard Rage, J. 0. Btimpson and M. 0. ,Berglin, C©unellmon. Nays: None. The Mayor thereupon declared said .motion carried en,d the Ordinance f in.ally passed and adopted, The Mayor thereupon signed said Ord -ranee In approval t P. W.*145(4 P. W. 11088 (R 1) LOAN AND GRANT AGREEI�TT dated as of , 193 , between the TOWN OF FAIRHOPE, BA.LIVIN COUNTY, ALABAMA (herein called the "Borrower") and the UNITED STATES OF AMERICA (herein called the "Government"). P A R T O N E 1. ose of Agreement. Subject to the terms and conditions of this Loan and Grant Agreement (herein called the "Agreement") the Government will, by loan and grant not exceeding in the aggregate the sum of $120,000 (herein called the "Allotment") aid the Borrower in financing a project (herein called the "Project") consisting of the construction of a waterworks system comprising a deep well, pump house and pumping equipment, surface reservoir, elevated storage tank, aerator and distribution system including installation of appurtenances and fire hydrants; the construction of a sewexagesy*stem and disposal plant providing for primary and secondary treatment and c'_Zlorination and the construction of a storage house for supplies for the water and sewerage systems, all pursuant to the Borrowerts application (herein called the "Application"), P.W.A. Docket No. 6762, ' Title II of the National Industrial Recovery Act (herein called the "Act") and the Constitution and Statutes of the State of Alabama (herein called the "State"), in - eluding particularly Act 102, General Acts of Alabama, approved March 299 1933. 2. Amount and Method of Making Loan. The Borrower will sell and the Government will buy, at the principal amount thereof plus accrued interest# $91,000 aggregate principal amount of the bonds described below (herein called the "Bonds") less such amount of the Bonds, if any, as the Borrower may sell to purchasers other than the Government. ( a) Designation: Waterworks and Sewerage System Revenue Bond. (b) Princimal Amount: $91,000. r 1 Docket No. 6762 Alc .., nv ,. .s: �wew.� . �,Y_r.3.. y'1.1:�.._rr�.,�.�aa._.. __ ._�..._G�%t _ AF P. W. 145;4 P. W. 11088 (c) Type: Negotiable, special obligation, serial, coupon bonds. (d) Registration: Revisterable, at the option of the holder, as to principal only. (e) Date: July 1, 1934. (f) Interest: at the rate of 4 per cent per annum payable on January 1, 1935, and semi --annually thereafter on July 1 and January 1 in each year. (g) Maturities: Payable on July 1 in years and amounts as follows: Year Amount Year Amount 1936 $2,000 1950 $3,000 1937 21000 1951 39000 1938 3,000 1952 3,000 1939 3,000 1953 3,000 1940 31000 1954 3,000 1941 3,000 1955 33,000 _ 1942 3,000 1956 3,000 1943 39000 1957 39000 1944 3,000 1958 3,000 1945 3,000 1969 4,000 1946 3,000 1960 4,000 1947 3,000 1961 41000 1948 3,000 1962 4,000 1949 30000 1963 41000 1964 4,000 (h) Security: Special obligations of the Borrower payable solely from and secured by a first pledge of a fixed amount of the gross revenues derived from the operation of the Project, which amount shall be sufficient to pay the interest on and principal of the Bonds as and when the same become due and payable and to maintain a rea- sonable reserve therefor; and additionally secured by a statutory mortgage lien on the Project. (i) Place and Medium of a ent: Payable, in any coin or currency which, on the respective dates of payment of the principal of and interest on the Bonds, is legal tender for the payment of public and private debts, at the office of the Treasurer of the Borrower, Fairhope, Alabama. (j) Denomination: $1,000. A Docket No. 6762 I--2 Pet W.14jJ574 3. Amount and Method of Making Grant. The Government will make and the Borrower will accept, whether or not any or all of the Bonds are sold to pur- chasers other than the Government, a grant (herein called the "Grant") in an amount equal to 30 per centum of the cost of the labor and materials employed upon the Project. The determination by the Federal Emergency Administrator of Public Works (herein called the "Administrator") of the cost of the labor and materials employed upon the Project shall be conclusive. The Government will make part of the Grant by payment of money and the remainder of the Grant by cancella- tion of Bonds or interest coupons or both. If all of the Bonds are sold to pur- chasers other than the Government, the Government will make the entire Grant by payment of money. In no event shall the Grant, whether made partly by payment of money and partly by cancellation, or wholly by payment of money, be in excess Of $ 35,000. 4. Bond Proceedingg. When the Agreement has been executed, the Bor- rower (unless it has already done so) shall promptly take all proceedings neces- sary for the authorization and issuance of the Bonds. 5. Bond and Grant Requisitions. From time to time after the execution of this Agreement, the Borrower shall file a requisition with the Government re- questing the Government to take up and pay for Bonds or to make a payment on account of the Grant. Each requisition shall be accompanied by such documents as may be requested by the Administrator (a requisition together with such docu- ments being herein collectively called a "Requisition"). 6. Bond Purchases. If a Requisition requesting the Government to take up and pay for Bonds is satisfactory in form and substance to the Administrator, the Government, within a reasonable time after the.receipt of such Requisition, will take up and pay for Bonds, having maturities satisfactory to the Administra- tor, in such amount as will provide, in the judgment of the Administrator, suf- ficient funds for the construction of the Project for a reasonable period. Pay- ment for such Bonds shall be made at a Federal Reserve Bank to be designated by the Administrator or at such other place or places as the Administrator may desig- nate, against delivery by the Borrower of such Bonds, having all unmatured interest coupons attached thereto, together with such documents as may be requested by the Administrator. The Government shall be under no obligation to take up and pay for Bonds beyond the amount which in the judgment of the Administrator is needed by the Borrower to complete the Project. 7. Grant hy Payment of Money. If a Requisition requesting the Government to make a payment on account of the Grant is satisfactory in form Docket No: 6762 I-3 P.W. 11088 (R 1) (July 1934) s N. 110W8 (R 1) and substance to the Administrator, the Government will T,ay to the Borrower at such place or places as the Administrator may desi-pate against delivery by the Borrower of its receipt therefor, a sum of money equal to the difference between the aggro -.gate amount previously paid on account of the Grant, and (a) 25 per centurn of the cost of the labor and materials shown in,the Requisition to have been employed upon the Project if the Requisition shows that the Project has not been completed,, or (b) 30 ;oer centum of the cost of such labor and materials if the Requisition shows that the Project has been completed and that all costs incurred in connection therewith have been determined; provided, however, that the part of the Grant made by payment of money to the Borrower shall not be in excess of the difference between the Allotment and tine amount paid (not including the amount paid as accrued interest) for the Bonds taken up by the Government. The Government reserves the right to make any part of the Grant by cancellation of Bonds or interest coupons or both rather than by payment of money if, in the jud;rmer_t of the Administrator, the Borrower does not need the money to pay costs incurred in connection with the construction of the Project. 8. !want hy Cancellatior_ of Bonds. If the Borrower, within a reason- able time afte_- the completion of the Project, shall have filed a Requisition, 1. satisfactory in form and substance to the Administrator, then the Government will cancel such Bonds and interest coupons as may be selected by the Administrator P".. r 4 ! in an aggregate amount equal (as nearly as may be) to the difference between 30 per centum of the. cost of the labor and materials employed upon the Project and the part of the Grant -made by payment of money. The Government will hold Bonds_ or -interest coupons.. for -such reasonable ..tizx ..in an amount sufwicient. to -permit compliance wTtii arovisions .of this_Paragraph, unless payment of sucii- diff.erence.. shal.l..hav-e -b-een. otherwise- provided. for '.by the Government. 9. Grant advances At. any time -after the execution of` .this Agreement thn--Go-7ernment m4yi-..,upon reaues t...of 'the Borrower; if_ in- -the: jud, pieat_ of. the Admini strator'-the- _i"rcumstarces- so warrant, make advances to -the Burro er -on account �of the Grant,. —but --much, adv-anc-es. .shall .-not be. in excess --of 30 per--centum of. the -cost of the labor and _materials- to -be-employed upon the Proj-ect, as estimates --bay. the _Administrator. 1 s I-4 10. Deposit of Bond Proceeds and Grant; Bond Fund; Construction Accounts. The Borrower shall deposit all accrued interest which it receives from the sale of the Bonds at the time of the payment therefor and any payment on account of the Grant which may be made under the provisions of Paragraph 8, PART ONE, hereof, into an interest and bond retirement fund account (herein called the "Bond Fund") promptly upon the receipt of such accrued interest or such payment on account of the Grant. It will deposit the remaining proceeds from the sale of the Bonds (whether such Bonds are sold to the Government or other purchasers) and the part of the Grant made by payment of money under the provisions of Paragraph 7, PART ONE, hereof, promptly upon the receipt of such proceeds or payments in a separate account or accounts (each of such separate accounts herein called a "Construction Account"), in a bank or banks which are members of the Federal Reserve System and of the Federal Deposit Insurance Corporation and which shall be satisfactory at all times to the Administrator. 11. Disbursement of Monies in Construction Accounts and in Bond Fund. - The Borrower shall expend the monies in a Construction Account only for such purposes as shall have been previously specified in Requisitions filed with the Government and approved by the Administrator. Any monies remaining unexpended in any Construction Account after the completion of the Project which are not required to meet obligations incurred in connection with the construction of the Project shall either be paid into the Bond Fund, or said monies shall be used for the purchase of such of the Bonds as are then outstanding at a price not exceeding the principal amount thereof plus accrued interest. Any Bonds so pur— chased shall be cancelled and no additional Bonds shall be issued in lieu thereof. The monies in the Bond Fund shall be used solely for the purpose of paying inter— est on and principal of the Bonds. 12. Other Financial Aid from the Government. If the Borrower shall receive any funds (other than those received under this Agreement) directly or indirectly from the Government, or any agency or instrumentality thereof, to aid in financing the construction of the Project, to the extent that such funds are so received the Grant shall be reduced, and to the extent that such funds so received exceed the part of the Grant which would otherwise be made by payment of money, the aggregate principal amount of Bonds to be purchased by the Govern— ment shall be reduced. I-5 P.W. 11088 (R 1) (July 1934) P. W. 145'74--` P. WO 11088 13. Conditions Precedent to the Governmentts Obligations. The Govern- ment shall be under no obligation to pay for any of the Bonds or to make any Grant: ( a) Financial Condition and Budget, If, in the judgment of the Admin- istrator, the financial condition of the Borrower shall have changed unfavorably in a material degree from its condition as theretofore represented to the Government, or the Borrower shall have failed to balance its budget satisfactorily or shall have failed to take action reasonably designed to bring the ordinary current expenditures of the Borrower within the prudently estimated revenues thereof; (b) Cost of Project. If the Administrator shall not be satisfied that the Borrower will be able to complete the Project for the sum of $120*000, or that the Borrower will be able to obtain, in a ma�lner satisfactory to the Administrator, any additional funds which the Administrator shall estimate to be necessary to complete the Project; (c) Compliance. If the Administrator shall not be satisfied that the Borrower has complied with all the provisions contained in this Agreement or in the proceedings authorizing the issuance of the Bonds, theretofore to be complied with by the Borrower; (d) LLggal Matters. If the Administrator shall not be satisfied as to all legal matters and proceedings affecting the Bonds, the security therefor or the Project; (e) Representations, If any representation made by the Borrower in this Agreement or in the Application or in any supplement thereto or amendment thereof, or in any document submitted to the Government by the Borrower shall be found by the Administrator to be incorrect or incomplete in any material respect. (f) Rate and Bond Ordinances. If the ordinance providing for the fixing and maintenance of rates and collection of charges for the facili- ties and services afforded by the Project and the ordinance pro- viding for the authorization, issuance and sale of the Bonds and the use of the revenues derived from the operation of the Project, shall not be satisfactory in form and substance to the Administrator.' (g) Wells, Special Conditions. Unless this requirement is waived or modified in writing by the Engineering Division, the well or wells shall first be !drilled and tested and the Engineering Division sat- isfied that the water supply will be satisfactory as to quantity and quality before any other work is undertaken. Docket No. 6762 I--6 ., a % , t , v PART TYPO IN CONSIDERATION OF THE GRANT, THE BORROWER COVENANTS THAT: 1. Construction Work. All work on the Project shall be done subject to the rules and regulations adopted by the Administrator to carry out the purposes and control the administration of the Act. The following rules and regulations as set out in Bulletin No. 2, Non —Federal Projects revised March 3, 1934, entitled, "P.W.A. REQUIREMENTS as to BIDS, CONTRACTORS' BONDS, AND CONTRACT, WAGE, AND LABOR PROVISIONS AND GENERAL INSTRUCTIONS as to APPLICATIONS AND LOANS AND GRANTS", shall be incorporated verbatim (with all blank spaces filled in as provided in said Bulletin) in all construction contracts for work on the Project: 111. (a) Convict labor. --No convict labor shall be employed on the project, and no materials manufactured or produced by convict labor shall be used on the project. "(b) Thirty —hour week. --Except in executive, administrative, and supervisory positions, so far as practicable and feasible in the judgment of the Government engineer, no individual directly employed on the project shall be permitted to work more than 8 hours in any 1 day nor more than 30 hours in any one week: Provided, That this clause shall be construed to permit working time lost because of inclement weather or unavoidable delays in any 1 week to be made up in the succeeding 20 days. "(c) No work shall be permitted on Sundays or legal holidays except in cases of emergency. 112. Wages. --(a) All employees directly employed on this work shall be paid just and reasonable wages which shall be compensation sufficient to provide, for the hours of labor as limited, a standard of living in decency and comfort. Such wages shall in no event be less than the minimum hourly wage rates for skilled and unskilled labor prescribed by the Administrator for the zone or zones in which the work is to be done, viz: Skilled labor — — — — — — — — — — — — Unskilled labor — — — — — — — — — — — "(b) In the event that the prevailing hourly rates prescribed under collective agreements or understandings between organized labor and employers in effect on April 30, 1933, shall be above the minimum rates speci— fied above, such agreed wage rates shall apply: Provided, That such agreed II-1 P.W. 11088—(R 1) (July 1934) t. Yr ` R 13. W. 1*1088 wage rates shall be effective for the period.of this contract, but not to ex- ceed 12 months from the date of the contract. 11(c) The above designated minimum rates are not to be used in discriminating against assistants, helpers, apprentices, and serving laborers who work and serve skilled journeymen mechanics and who are not to be termed as "unskilled laborers..° 11(d) The provisions of this contract relating to hours and minimum wage rates for labor directly employed on the project shall for the purposes of this contract, to the extent applicable, supersede the terms of any code adopted under Title I of the act permitting longer hours or lower minimum wage rates. 11(e) All employees shall be paid in full not less often than once each week and in lawful money of the United States, unless otherwise per- mitted by the Government engineer, in the full amount accrued to each indi- . victual at the time of closing of the pay roll, which shall be at the latest date practicable prior to the date of payment, and there shall be no deduc- tions or rebates on account of goods purchased, rent, or other obligations, but such obligations shall be subject to collection only by legal process: Provided, however, That this clause shall not be construed to prohibit the making of deductions for premiums for compensation and medical aid insurance, in such amounts as are authorized by the laws of - - - - - - - - - - - - - - - to be paid by employees, in those cases in which, after the making of the de- ductions, the wage rates will not be lower than the minimum wage rates herein established. 11(f) A clearly legible statement of all wage rates to be paid the several classes of labor employed on the work, together with a statement of the deductions therefrom for premiums for workmen's compensation and/or medical aid insurance authorized by the laws of - - - - - - - - - - - - - --, should such deductions be made, shall be posted in a prominent and easily accessible place at the site of the work, and there shall be kept a true and accurate record of the hours worked by and the wages, exclusive of all autho- ized deductions, paid to each employee, and the engineer inspector shall be furnished with a sworn statement thereof on demand. I I--2 `. % s v G P. W. 11088 �'(g) The Board of Labor Review (herein called the."Board") shall hear all labor issues arising under the operation of this; contract and such issues as may result from fundamental ch,)xges in economic conditions during the life of this contract. "(h) The mirinuum wa. e rates herein establishedshall be s,?bject to change by the Administrator on recommendation of the Board. In the event that, as a, result of fundamental changes in economic cond.iticns, the Adminis- trator, acting on such reco=,e_.dation, from time to time establishes different minimum wage rates (referred to in pa_:ag-aph 2 (a), (b), and (c) herecf) all contracts for work on the project shall be adjusted accordingly by the parties thereto so that the contract price to the contractor under any contract or to any subcontractor under any subcontract shall be increased by an amount equal to any such increased cost, or decreased in an amount equal to such decreased cost. "(i) Engineers, architects, and. other professional and sub - professional employees er_r;a-cd in duties no mall.,y done at the site of the project shall receive at least the prevailing; rates for the various types of service to be rendered, provided that in no case sha,li professional employees receive less than the following weekly compensation for 40 hours or less irrespective of the number of hours employed: ;36.00 in the northern zone; $33.00 in the central zone; and $30.00 in the southern zone. where the working week is longer than 40 hours, weekly compensation shall be increased proportion- ally. Compensation under this paragraph shell be subject to the approval of the Government Engineer. 113. (a) Labor preferences. --preference stall be given, where they are qualified, to ex --service men with dependents, and then in the following order: (1) To citizens of the Unitod States and aliens who have declared their in- tention of becoming citizens, who are bona fide residents of (political subdi- vision and/or county) - - - - - - - - - - - - - - - - -and (2) to citizens of the United States and aliens who have declared. their intention of becoming citizens, who are bona fide residents of (State, Territory, or district) - - -- - - - - - - - - - - - - -: Provided, That these preferences shall apply only where such labor is available and qualified to perform the work to which the employment relates. "(b) Employment services. --To the fullest extent possible, labor II-3 j P.V. 11088 required for the project and appropriate to be secured through employment services shall be chosen from the lists of qualified workers submitted by local employment agencies designated by the United States 1,Immloyment Service: Pro- vided, however, That union labor, skilled and unskilled, shall not be required to register at such local employment agencies but, if such labor is desired by the employer, shall be secured in the customary ways through recognized union _ locals. In the event, however, that employers who wish to employ union labor are not furnished with qualified union workers by the union locals which are authorized to furnish such labor residing in the locality within 48 hours (Sundays and holidays excluded) after request is filed by the employer, all labor shall be chosen from lists of qualified workers submitted by local agencies designated by the United States Employment Service. In the selection mf workers from lists prepared by such employment agencies and unian.loca.ls, the labor preferences provided in section (a) of this paragraph 3 shall be ob- served, and preference shall be giver to those unemployed at the date of regis- tration who, at the date of selection, have no other available employment. If(c) Compliance with Title I of the Act. --The following sections 7 (a) (1) and 7 (a) (2) of Title I of the Act shall be observed: "(1) That employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of emrloyers of labor, or their agents, in the designation of such representatives or in self --organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; (2) that no employee and no one seeking employment shall be required as a condition of employment to join any company 'anion or to refrain from joining, organizing, or assisting a labor organization of his own choosing. 114. Human labor. --The maximum of human labor shall be used in lieu of machinery wherever practicable and consistent with sound economic and public advantage; and to the extent that the work may be accomplished at no greater expense by humam labor than by the use of machinery, and labor of requisite qualifications is available, such human labor shall be employed. 115. Compensation insurance. --Every employer of labor shall provide, if permitted by the laws of ------------------ ---- -- ---, adequate workmen's compensation insurance for all labor employed by him on the project who may come within the protection of such laws and shall provide, where prac- ticable, employers' general liability insurance for the benefit of his employees not protected by such bompensation laws, and proof of slZch insurance satisfactory I I --4 to the Government engineer shall be given. Where it is not permitted by law that such insurance be provided, some method satisfactory to the Administrator must be provided by which the employees may, by paying the entire amount of the premiums, derive a similar protection. 116. Persons entitled to benefits of labor provisions. --There shall be extended to every person who performs the work of a laborer or of a mechanic on the project or on any part thereof the benefits of the labor and wage -provi— sions of this contract, regardless of any contractual relationship between the employer and such laborer or mechanic. There shall be no discrimination in the selection of labor on the ground of race, creed, or color. 117. Withholding payment. --Under all construction contraots, — — — — — — — — — — — — — — — — — — — — may withhold from the contractor so much of accrued (The borrower) payments as may be necessary to pay to laborers or mechanics employed on the work the difference between the rate of wages required by this contract to be , paid to laborers or mechanics on the work and the rate of wages actually paid to such laborers or mechanics. 118. Accident prevention. --Reasonable precautions shall at all times be exercised for the safetyof employees on the work and applicable provisions of the Federal, State, and municipal safety laws and building and construction codes shall be observed. All machinery and equipment and other physical hazards shall be guarded in accordance with the safety provisions of the Manual of Accident Prevention in Construction of the Associated General Contractors of America, unless and to the extent that such provisions are incompatible with Federal, State, or municipal laws or regulations. 119. N. R. A. Compliance. --The contractor shall comply with each approved code of fair competition to which he is subject, and if he is engaged in any trade or industry for which there is no approved code of fair competition, then as to such trade or industry with an agreement with the President under Section 4 (a) of the National Industrial Recovery Act (President's Reemployment Agreement), and — — — — — — — — — — — — — — — shall have the right, subject to the approval (The borrower) of the Government engineer, to cancel this contract for failure to comply with this provision and make open market purchases or have the work called for by this contract otherwise performed at the expense of the contractor. So far as articles, materials or supplies produced in the United States are concerned, no articles, materials or supplies shall be accepted or purchased for the performance of the work nor shall any subcontracts be entered into for any articles, materials or supplies, in whole or In part produced or furnished by any person who shall not II-5 P.W. 11088-(R 1) (July 1934) have certified that he is complying with and will continue to comply with each code of fair competition which relates to such articles, materials or supplies, and/or in case .there is no approved code for the whole or any portion thereof then to that extent with an agreement with the President as aforesaid. 1110. (a) Inspection of records. --The Administrator, through his author- ized agents, shall have the right to inspect all work as it progresses, and shall have access to all pay rolls, records of personnel, invoices of materials, and any and all other data relevant to the performance of this contract. There shall be submitted to the Administrator, through his authorized agents, the names and addresses of all personnel and such schedules of the cost of labor, costs and quantities of materials, and other items, supported as to correctness by such evidence, as, and in such form as, the Administrator, through his author- ized agents, may require. The submission and approval of said schedules, if require, shall.be a condition precedent to the making of any payment under the contract. "(b) There shall be provided for the use of the engineer inspector I such reasonable facilities as he may request. In case of dispute the Government engineer shall determine the reasonableness of the request. "11. Reports. --Every employer of labor on the project shall report within 5 days after the close of each calendar month, on forms to be furnished by the United States Department of Labor, the number of persons on their respec- tive pay rolls directly connected with the project, the aggregate amount of such pay rolls, and the man-hours work, wage scales paid to the various classes of labor, and the total expenditures for materials. Two copies of each of such monthly reports are to be furnished to the Government engineer, and one copy of each to the United States Department of Labor. The contractor under any con- struction contract shall also furnish to - - - - - - - - - - - - - - - - - - to (The borrower) the Government engineer and to the United States Department of Labor the names and addresses of all subcontractors on the work at the earliest date prac- ticable. 1112. There shall be provided all necessary services and all materials, tools, implements, and appliances required to perform and complete entirely and in a workmanlike manner the work provided for in this contract. Except as otherwise approved in writing by the Government engineer, such services shall be paid for in full at least once a month and such materials, tools, implements, II-6 ?.W. 11088-(R 1) (July 1934) 41� . _.6v . • A 0 and appliances shall be paid for at least once a month to the extent of 90 per— cent of the cost thereof to the contractor, and the remaining 10 percent shall be paid 30 days after the completion of -the part of the work in or on which such materials, tools, implements, or appliances are incorporated or used. 1113. Signs. --Signs bearing the legend Public Works Project No. shall be erected in appropriate places at the site of the project. 1114. All reasonable rules and regulations which the Public Works Ad— ministration may prescribe toward the effectuation of the matters covered by paragraphs 1 to 13, inclusive, shall be observed in the performance of the work. 1115. Subcontractors. --(a) Appropriate provisions shall be inserted in all subcontracts relating to this work to insure the fulfillment of all provi— sions of this contract affecting such subcontractors, particularly paragraphs 1 to 14, inclusive. "(b) No bid shall be received from any subcontractor who has not signed U. S. Government Form No. P. W. A. 61, revised (March 1934). 1116. Termination for breach. --In the event that any of the provisions of paragraphs 1 to 15, inclusive, of this contract are violated by the contrac— tor under the construction contract or by any subcontractor under any subcon— tract on the work, — — — — — — — — — — — — — — — — — — may, subject to the approval (The borrower) of the Government engineer, and upon request of the Administrator, shall terminate the contract by serving written notice upon the contractor of its in— tention to terminate such contract, and, unless within 10 days after the serving of such notice such violation shall cease, the contract shall, upon the expira— tion of said 10 days, cease and terminate. In the event of any such termination — — — — — — — — — — — — — — — may take over the work and prosecute the same to com— (The borrower) pletion or otherwise for the account and at the expense of the contractor and/or such subcontractor, and the contractor and his sureties shall be liable to — — — — — ——————— — — — — —— for any excess cost occasioned ——————— — — — — —— (The borrower) (The borrower) ——— — — — — in the event of any such termination, and — — — — — — — — — — — — — —— (The borrower) — — — — — — — — — —may take possession of and utilize in completing the work, such materials, appliances, and plant as may be on the site of the work, and necessary therefor. This clause shall not be construed to prevent the termination for other causes provided in the construction contract. 1 I-7 P.W. 11088-(Pt 1) (July 1W4) y , *V I w 0 ♦ ♦ , +. 1117. Definitions. --The term "Act" as used herein refers to the National Industrial Recovery Act. The term "Government engineer" as used herein shall mean the State engineer (P.W.A.) or his duly authorized representative, or any person designated to perform his duties or functions under this agreement by the Administrator. The term "engineer inspector" as used herein refers to State engineer inspectors, resident and assistant resident engineer inspectors, and supervising engineers, appointed by the Administrator. The term "materials" as used herein includes, in addition to materials incorporated in the project used or to be used in the operation thereof, equipment and other materials used and/or consumed in the performances of the work." 2. Restriction as to Contractors. The Borrower shall receive no bid from any contractor, nor permit any contractor to receive any bid from any sub— contractor, who has not signed U. S. Government Form No. P. W. A. 61, revised March, 1934. 3. Bonds and Insurance. Construction contracts shall be supported by adequate surety or other bonds or security satisfactory to the Administrator for the protection of the Borrower, or materialmen, and of labor employed on the Project or any part thereof. The contractor under any construction contract shall be required to provide public liability insurance in an amount satisfac— tory to the Administrator. 4. Force Account. If prices in the bids are excessive, the Borrower reserves the right, anything in this Agreement to the contrary notwithstanding, to apply to the Administrator for permission to do all or any part of the Project on a force account basis. II-8 P.W. 11088-(R 1) (July 1934) 4. • 0 4 0 • P.VI. 11088 (R 1) E A a T THREE 1. Construction. of Protect. Not later than upon the receipt by it of the first Bond payment, the Borrower will commence or cause to be commenced the construction of the Project, and the Borrower will thereafter continue such construction or cause it to be continued to coim7letion'with all practicable dispatch, in an efficient and economical manner, at a reasonable cost and in accordance with the provisions of this Agreement, plains, drawings, specifications and construction contracts which sha11 be satisfactory to the Administrator, and md.er such engineering supervision. and inspection as the Administrator may re( wire. E'ycept With the %-rritten consent of the Administrator, no materials or equipment for the Project shall be purchased by tiie Borrower subject to any chattel mortgage, or any conditional sale or title retention agreement. 2. Information. During the construction of the Project the Borrower will furnish to the Government all such information and data as the Administrator may reTaest as to the construction, cost ar_d.progress of the work. The Borrower will furnish to the Gover�rient and to any purchaser from the Government of 25 per centum of the Bonds, si.ich financial stateroents and other information and data relating; to the Borrower and tree Project as the Administrator or any such purchaser may at a:iy time reasonably require. .��. Rp:presentations and Warranties. The Borrower represents and warrants as follows: (a) Liti.ation. No litigation or other proceedings are now pending or threatened .which might adversely affect the Bonds, the security therefor the constrnction and operation of the Project, or the financial condition of the Borrower; (b) Fl.nancial Condition. The character of the assets and the financial condition of the Borrower are as favorable as at the date of the Borrowerts most recent financial statement, furnished to the Government as a part of the Application, 1 .. 4 4 and there have been no changes in the character of its assets or in its financial condition except such changes as are necessary and incidental to the ordinary and usual conduct of the Borrower's affairs; (c) Fees and Commissions. It has not and does not intend to pay any bonus, fee or commission in order to secure the loan or grant hereunder; (d) Affirmation. Every statement contained in this Agreement, in the Application, and in any supplement thereto or amendment thereof, and in any other document submitted to the Government is correct and complete, and no relevant fact materially affect- ing the Bonds, the security therefor, the Grant or the Project, or the obligations of the Borrower under this Agreement has been omitted therefrom. 4. Sale of Bonds by the Government. The Borrower will take all such steps as the Government may reasonably request to aid in the sale by the Government of any or all of the Bonds. Upon request, the Borrower will furnish to the Government or to any purchaser or purchasers from the Government of 25 per centum of the Bonds, information for the preparation of a bond circular in custom- ary form, signed by the proper official of the Borrower, containing such data as the Government or such purchaser or purchasers may reasonably request concerning the Borrower and the Project. 5. Expenses. The Government shall be under no obligation to pay any costs, charges or expenses incident to compliance with any of the duties or obligations of the Borrower under this Agreement including, without limiting the generality -of the foregoing, the cost of preparing, executing and delivering the Bonds, and any legal, engineering and accounting costs, charges or expenses incurred by the Borrower. 6.. Waiver. Any provision of this Agreement may be waived or amended with the consent of the Borrower and the written approval of the Administrator, without the execution of a new or supplemental agreement. III-2 P.W. Moss (R 1) (July 19341 u 7. Interest of Member of Congress. No Member of or Delegate to the Congress of the United States of America shall be admitted to any share or part of this Agreement, or to any benefit to arise thereupon. 8. Validation. The Borrower hereby covenants that it will in— stitute, prosecute and carry to completion in so far as it may be within the power of the Borrower, any and all acts and things to be performed or done to secure the enactment of legislation or to accomplish such other proceedings, judicial or otherwise, as may be necessary, appropriate or advisable to empower the Borrower to issue the Bonds and to remedy any defects, illegalities and irregularities in the proceedings of the Borrower relative :o the issuance of the Bonds and to validate the same after the issuance thereof to the Government, if in the judgment of the Administrator such action may be deemed necessary, appropriate or advisable. The Borrower further covenants that it will procure and furnish to the Government, as a condition precedent to the Government's obligations hereunder a letter from the Governor of the State stating that if in the judgment of the Administrator it may be advisable to enact legislation to empower the Borrower to issue the Bonds or to remedy any defects, illegalities or irregularities in the pro— ceedings of the Borrower relative to the issuance thereof or to validate the same, said Governor will recommend and cooperate i'n the enactment of such legislation. 9. Miscellaneous. This Agreement shall be binding upon the parties hereto when a copy thereof, duly executed by the Borrower and the Government, shall have been received by the Borrower. This Agreement shall be governed by and be construed in accordance with the laws of the State. 10. Namin of Project. The Project shall never be named except with the written consent of the Administrator. f 11. Undue Delay by the Borrower. If in the opinion of the Administrator, which shall be conclusive, the Borrower shall delay for an unreasonable time in carrying out any of the duties or obligations to be performed by it under the terms of this Agreement, the Administrator may cancel this Agreement. 1 III-3 P.W. 11088 (R 1) (July 1934) 1 P.�wgCr� y4 0. *' M 12. Construction of Agreement. If any provision of this Agree— ment shall be invalid in whole or in part, to the extent it is not invalid it shall be valid and effective and no such invalidity shall affect, in whole or in part, the validity and effectiveness of any other provision of this Agreement or the rights or obligations of the parties hereto, provided, in the opinion of the Administrator, the Agreement does not then violate the terms of the Act. IN WITNESS WHEREOF, the Town of Fairhope, Baldwin County, Alabama and the UNITED STATES OF AMERICA have respectively caused this Agreement, to be duly executed as of the day and year first above written. SEAL: ATTEST: TOWN OF FAIRHOPE By v V UNITED STATES OF AMERICA By — Federal Emergency Administrator of Public Works. Docket No. 6762 III-4 P.W. 11088 (R 1) (July 1934) e " The minutes of the last regular meeting were approve. as read. Motion by Councilman Gaston seconded by Councilman Stimpson that the `1'own's conttibutiom to the night watM=an be increased $10.00 per month the same to be applied as stated in his: letter of July 9, 1934, carried >- a a. 41,, It was moved by and seoonded by that the meeting adjourn. Motion oarried. r � pier o