HomeMy WebLinkAbout03-10-1941 Regular MeetingSTATE OF ALABAMA
COUNTY OF BALDWIN
The Town Council of the Town of Fairhope met in regular session
at the Town Hall, Monday, lurch 10, 1941 at 7:30 P.M. with the
following members present: Howard Ruge, Mayor, Councilmen: Sam
Dyson, M.O. Berglin, H.P. Kamper, C.A. Gaston and T.O. Stimpson,
the same constituting the full membership of the Town Council.
The minutes of the previous regular meeting were approved as
read.
The following bills were allowed:
Western Auto Store, Gen.
3.98
D.Z. Grove, Gen.
16.50
Rockwell's Store, Gen.
2.69
C.D. Reese, Gen.
4.24
McKean Hd'we Co, Gen.
.75
Klumpp Mot. Co, Gen.
24.32
Gaston Tlot Co., Gen.
9.00
Forster Bros. , Gen.
42.40
F'hope Coal & Sup.; Gen.
35.75
Commings Hall Fund
17.48
Barford Traat. Co., Gen.
7.20
Union Ex. Fr. Gas, W & S
.25
Union Ex. Fr. Ca.., Gen.
.37
Gaston :dot. Go.., W & S
1.25
F'hope Coal & Sup., W & S
118.06
Bidgood Stat. Co., W & S
8.09
Bidgood Stat. Co., Gen.
5.82
Bidgood Stat. Elea.
8.09
Forster Bros., E1ec.
542.81
F'hope Foal & Sup., Elea.
12.11
Detroit Lub. Co. Elec.
25.73
Fairhope Courier, Gen.
43.28
Fairhope Courier, W & S
10.00
Fairhope Courier, Elea.
28.68
General Elea. Elea.
15.30
Gaston Mot., Elec.
1.72
Dr. C.G. Godard, Elea.
4.00
Light. Fix. Sup., Co. Elea.
519.51
Marine Spec. Cop Elea.
16.50
McKean Hd'we- Co. Elec.
.20
Ruffles, Elec.
.30
Sangamo Elea. Co., E`lec.
26.81
Union Ex. Fr. Elea.
21.47
Turner Supply., Elec.
26.79
Payroll for month of February 1941
Howard Ruge, 1'nayor Elea.
$75.00
W & S
25.00
Gen.
50.00
Evalyn B--rglin, Clerk
75.00
R.C. Yohn, Bookkepper
85.00
J.H. Titus, Ch.. of Police
100.00
Geo. C . Dyson, W & S
105.00
Raymond Stapleton, Elea.
105.00
T.P. Bailey, Elec.
105.00
Marvin Nichols, Elec.
85,00
Kenneth Cain, Elea,
85.00
Frank McKenzie, Blec.
85.00
E.D. S*ift, Gen.
60,00
W.0 . Beebe-, Gen.
50.00
Gouncilment
M.O.
Berglin, Gen.
4.00
Sam
Dyson, Gen.
4.00
C.A.
Gaston, Gen.
4.00
H.P.
Kampen Gen.
4.00
J.B.
Stimp-son, Gen.
4.00
Payroll
Roads 460.00
Electric 97.70
W & S 55.10
Fire Hydrant Rental 63.00
llisal. 7.00
Sewer, 1.05
Wharf lights 8.35
Donations:
Organic School Elea. 61.96
W & B 12.80
Public School Elec. 21.48
W & S 11.22
Country Club Elec. loll
Red Goss Sewing
Room E:lec. loll
Miscl. Water 3.00
Tourist Club Elec. 3.78
W & S 2.OQ
Public Library Elea. 6.98
W & S 2.00
It was moved by Councilman C.A. Gaston and seconded by Councilman
Sam Dyson that.xarking on the south side of Fairhop.e eve. from
east side of Theatre Building to Church St. be limited to fifteen
minutes at all times. Motion carried.
It was moved by Councilman 11.0. Berglin and seconded by council-
man C.A. Gaston that the building permit of W.C. Mason to erect
a the and brick building on Lot. 5, BLk. 12, Div. 1, facing
Section Street, be. granted. Motion carried.
It wa.s moved by Councilman C.A. Gaston and seconded by Council-
man 11.0. Berglin that the Mayor be instructed to investigate
the possiblility of exterminating rate. Motion carried.
It was moved by Councilman 11.0. Berglin and seconded by Council-
man J.O. S'timpson that mont#ly salaries of the following employees
be revised as follows: Raymond Stapleton,$120.009 J.P. Bailey $1400
Geo. Dyson, $120.00, Marvin Nichols, $100,00, Kenneth Cain $90.001,
R.C. Yohn, $100.00. Motion carried.
Councilman H.P. Kamper presented the following ordinance, includ-
ing the preambles thereto, which wqs considered by the Council:
ORD INANCE' NO . S3
WHEREAAS, at a regular melting of the Town Council of the
Town. of Fairhope, Alabama, (whirh town is herein referred to
as "the town"), held on January l3: 1941s an ordinance was duly
adopted calling an election to be held on February 18, 1941, in
the town for the purpose of submitting to the qualified electors
of the town the question of whether or not the town shall issue
on its credit,its General Obligation Bonds in the aggregate
principal amount of #339000 for the purpose of providing funds
for the payment of certain notes heretofore issued by the town
in the acquisition of and which are secured by mortgages on units
of the municipal light plant of the town; and
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WHERE -AS, notice was given of said election in
the ` form and' manner provided in said ordinance by publi-
cation in The Fairhope Courier, a newspaper of general
circulation in and published in the town, in the issues
of said newspaper published on January 16, ig4l, January
23, 1941, and January 30, 1941; and
WHEREAS, such election was called, notice there-
of was given and the same was held in strict accordance
with law and the provisions of said ordinance on the 18th
day of February, 1941, and the ballot used at said elec-
tion was in the form provided in said ordinance, and on
February 19, 1941, which was the day following the date
on which said election was held, the town council of the
town met as,a board of canvassers to canvass the returns
of said election, and then and there canvassed the said
returns and found that a total of forty-seven votes were
cast at said election, of which forty-five votes were
cast in favor of the issuance of said bonds and two
votes were cast against -the issuance thereof, being a
majority of forty-three votes cast in favor of said
bonds; and 1 , .,
AREAS, the town council of the town has as-
certained and determined that said bonds should be is-
sued in the said aggregate principal amount of $33,000,
and it has been determined and is hereby ascertained
that the period of usefulness of the portions of the
municipal light plant of the town acquired with the pro-
ceeds of the aforesaid notes will extend over a period
of not less than ten (10 ) years from the date hereof;
NOVtT, THEREFORE, be it ordained by the Town
Council of the Town of Fairhope, Alabama, as follows:
Section 1. The recitals set out in the fore-
going preambles are hereby found and declared to be
true.
Section 2. Pursuant to the provisions of the
Municipal Bond Code of Alabama, as amended, there is hereby
authorized to be issued and sold $33,000 principal amount
of General Obligation Bonds of the town for the purpose
of providing funds to pay certain 5% mortgage notes here-
tofore issued by the town dated June 1, 1937, and January
11 1940, in the acquisition of and which are secured by
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mortgages on units of the
town. Said bonds shall be
be numbered consecutively
be in the denomination of
January 1, 1941, and_ shall
municipal light plant of the
thirty-three in number, shall
from 1 to 33, inclusive, shall
$1,000 each, shall be dated
mature as follows:
Numbers
( both inclusive) Maturity Date
Principal
Amount Maturing
1
to
5
January
12
1942
5,000
6
to
10
January
12
1943
5,000
11
to
15
January
1,
1944
5,000
16
to
21
J:anuary
12
1945
6, 000
22
to
27
January
1,
1946
6,000
28
to
33
January
11
1947
6,000
Said bonds shall bear interest from their date at such
rate as may be hereafter fixed by ordinance of the town,
but not exceeding the rate of 31 per annum, which inter-
est shall be payable semi-annually on July 1 and January
1 of each year until their respective maturities as shall
be evidenced by semi-annual interest coupons attached to
said bonds. Said bonds and interest coupons shall be
payable in lawful money of the United States of America
at the principal office of The First National Bank of
Mobil., in the City of Mobile in the State of Alabama.
Section 3. Said bonds shall be signed in be-
half of the town by the mayor of the town and by the
treasurer of the town, and the corporate seal of the
town shall be affixed to each thereof. The said inter-
est coupons shall bear the facsimile signatures of the
said mayor and the said treasurer, which facsimile sig-
natures shall be valid in all respects as if the said
officers had signed the said coupons in person. Said
officers are hereby directed so to execute said bonds
and affix the seal of the toy^rn thereto.
Section 4. Said bonds shall be general obli-
gations of the town and for the payment of the principal
thereof and interest thereon the full faith, credit, tax-
ing powers and resources of the town are hereby irrevocably
pledged, and there is hereby appropriated and ordered to be
set aside annually out of the general revenues of the town,
so long as any of the said bonds are outstanding, a suffi-
cient sum to pay the principal of and interest on said
bonds as and when said principal and interest shall re-
spectively mature. Such appropriation shall not be used
for any other purpose.
Section 5. Each of said bonds and interest
coupons applicable thereto shall be in substantially
the following form, with appropriate changes therein
for the numbers and maturity dates thereof and with
the interest rate and amount inserted in the spaces
provided therefor:
w6
No.
-4-
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF ALABAMA
TOWN OF FA=OPE
GENERAL OBLIGATION BOND
$1,000
On the lst day of January; 194 , .for value
received, the Town of Fairhope, a municipal corporation
of the State of Alabama, promises to pay to the bearer
hereof the sum of
O N E T H O U S A N D D 0 L L A R S
with interest thereon meanwhile at the rate of
per annum, payable semi-annually on the first days of
July and January upon surrender of the annexed inter-
est coupons therefor as they severally become due.
Both the principal hereof and the interest hereon are
payable in lawful money of the United States of America
at the princi-L,al office of The First National Bank of
Mobile, in_the City of Mobile in the State of Alabama.
- The indebtedness evidenced by this bond is
a general obligation of said town for the payment of
the principal of and interest on which the full faith,
credit, taxing powers and resources of the tovrn have
been irrevocably pledged. This bond has been issued
pursuant to the Municipal Bond Code of Alabama, as
amended, and an election duly called and held in
said town on February 18, 1941, and ordinances of
said town duly and legally adopted for the purpose
of providing funds for the payment of certain notes
"�---of-sa'id�-t-oissued in the acquisition of units of
the municipal light plant of said town.
It is hereby certified and recited that all
conditions, actions and things required by the consti-
tution or laws of Alabama to exist, be performed or
happen precedent to or in the issuance of this bond
and the creation of the indebtedness evidenced hereby
exist, have been performed and have happened, and
that the indebtedness evidenced by this bond, together
with all other indebtedness of the tovm, was when in-
curred and now is within every debt and other limit
prescribed by the constitution and laws of Alabama.
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IN WITNESS WHEREOF, said town has caused this
bond to be executed in its name by its mayor and town
treasurer, and its cbrporate seal to be hereunto affix-
ed, and the annexed interest coupons to be executed
with the facsimile signatures of its said -mayor and
town treasurer, and this bond to be dated January 1,
1941.
Mayor Town Treasurer
(Form of Coupon)
Coupon
No.
On the lst day of , 194 , the
Town of Fairhope in the State of Alabama promises to
pay to the bearer hereof, at the principal office of
The First National Bank of Mobile, in the City of Mo-
bile in the State of Alabama,
Dollars in lawful money of the United States of America,
being six months' interest then due on the General Obli-
gation Bond of said town dated January 1, 1941, and num-
bered
Mayor Town Treasurer
Section 6. The provisions of this ordinance
shall constitute a contract between the to.Arn and every
holder of said bonds issued hereunder or of any coupons
appertaining thereto. Whenever all of said bonds and
the interest thereon shall have been paid in full, and
all of the agreements on the part of the town herein
contained have been performed, then upon the happen-
ing of such events the obligations of the town here-
under shall thereupon cease.
Section 7. The banking institution or insti-
tutions at which said bonds shall at any time be payable,
by their acceptance of their duties hereunder, shall be
construed to have agreed thereby with the holders of said
bonds that they will make all remittances of principal of
and interest on the said bonds in bankable funds at par
and without deductions for exchange, fees or expenses.
The town agrees with the holders of said bonds that it
will pay all charges for exchange, fees or expenses which
10
may be made by any such banking institution in the mak-
ing of remittances of principal of or interest on any of
said bonds so that said principal and interest will be
paid in bankable funds at par.
Section 8. The variaus provisions of this ordi-
nance are hereby declared to be severable. In the event
any provision of this ordinance shall be held invalid by
a court of competent jurisdiction, such invalidity shall
not affect any other portion of this ordinance.
APPRO VE'D :
'�t=t.
Mayor
Mr.�22moved that the rules be su-
spended and unanimous consent be given for immediate con-
sideration of and action on said ordinance, which motion
was seconded by Mr. 0
and upon the
motion being put to vote the following vote was recorded:
Ayes: Messrs. Ruge, Berglin, Dyson, Gaston, Kamper and
Stimpson; Nays: None. The mayor thereupon declared
that the motion for unanimous consent for immediate con-
sideration of and action on said ordinance had been unan-
imously carried. Mr. F thereupon
moved that the said ordinance be final y dopted, which
motion was seconded by Mr. 'J, and
upon said motion being put to vote the following vote
was recorded::--. Ayes: Messrs. Ruge, Berglin, Dyson,
Gaston, Kamper and Stimpson; Nays: None. The mayor
thereupon announced that the motion for adoption of
said ordinance had been unanimously carried. Mayor
Ruge thereupon signed said ordinance in approval there-
of.
C-4a
-r7-
Mr. - then introduced the
following resolution:
BE IT RESOLVED by the Town Council of the Town
of Fairhope, Alabama, that the following notice of proposed
sale of General Obligation Bonds of said town., which were
heretofore authorized to be issued by ordinance adopted at
this meeting, shall be published by the mayor in The Fair -
hope Courier, a newspaper published in and having a general
circulation in said town, in the issues of said newspaper
published on March 13, 1941, and March 20, 1941:
NOTICE OF SALE OF TOWN OF FAIR -
HOPE, ALABAMA, GENERAL OBLIGATION BONDS
The Town of Fairhope in the State of Alabama,
acting by and through its town council, will sell
at public auction, at the office of the town clerk,
at 10:30 o'clock, A. M., on March 26, 1941, $33,000
principal amount of Town of Fairhope, Alabama, Gen-
eral Obligation Bonds to be dated January 1, 1941s
to be in the denomination of $1,000 each, to bear
interest at a rate not exceeding 3% per annum pay-
able -semi-annually on July 1 and January l,and to
mature in principal installments on January 1 in
the following amounts and in the following years:
$5,000 in each of the gears from 1942 to 1944, in-
clusive; and $6,000 in each of the years from 1945
to 1947, inclusive. Bidders are invited to speci-
fy in their bids the rate of interest which the
bonds shall bear, which shall not exceed 3% per
annum. No interest rate will be considered ex-
cept in multiples of 1/4 of 1%, and no condition-
al bids will be considered. The bonds will be
sold as a whole to bear that interest rate which
on the bids made will yield the lowest net inter-
est cost to the town. Each bidder must deposit
with the town clerk before bidding a cashier's
check or a certified check in the amount of
$660.00 payable to the order of the town as
evidence of good faith, which deposit shall
be forfeited by the successful bidder in the
event he fails to comply with the terms of
his bid, the deposits of the unsuccessful
bidders to be returned'to them. No interest
will be allowed on any deposit and all bidders
must bid for all of the bonds. The right is
reserved to reject any and all bids. The
town will furnish to the purchaser the opin-
ion of Messrs. Bradley, Baldwin, All & White
approving the validity of the bonds. In the
event that prior to the delivery of the bonds
the income received by private holders from
bonds of the same type and character shall be
10
taxable by the terms of any Federal income tax
law, the successful bidder may, at his election,
be relieved of his obligations under the contract
to purchase the bonds and in such case the depos-
it accompanying his bid will be returned.
TOWN OF FAIRHOPE
By Howard Ruge
Mayor
BE IT FURTHER RESOLVED, that the mayor is here-
by directed to file a copy of said notice with the State
Department of Finance of the State of Alabama not less
than fourteen (14) days prior to the said date of sale.
Mr. �� moved that the rules be,su-
spended-aid animous consent be given for immediate con-
sideration of and action on said re olution, which motion
was seconded by Mr. , and upon the
motion being put to vote the fo lowing vote was recorded:
Ayes: Messrs. Ruge, Berglin, Dyson, Gaston, Kamper and
Stimpson; Nays: None. The mayor thereupon declared
that the motion for unanimous consent for immediate con-
sideration of and action on said resolution had been unan-
imously carried. Mr. D thereupon
moved that the said resolution e fin ly ado ted, which
motion was seconded by Mr. and
upon said motion being put to vote the following vote
was recorded: Ayes: Messrs. Ruge, Berglin, Dyson,
Gaston, Kamper and Stimpson; Nays: None. The mayor
thereupon announced that the motion for adoption of
said resolution had been unanimously carried.
;r►
Qz
There being no further business to come before
the meeting the same was on motion duly adjourned•�6
Mayor
D � i
T�vn Clerk