HomeMy WebLinkAbout11-13-1961 Regular Meeting (2)MINUTES. OF A MEETING OF THE
MAYOR` AND C 17Y COUNC I L OF
THE CITY OF F A I R HO PE , ALABAMA,
HELD ON NOVEMBER 13, U961'
The Mayor and City Council of the City of Fairhope, A- l aoama- met in regular
session at the city haU1 in the City on November 13, 1961, at 7:30 o'cl;ock
P.M. The. -Meeting was called to order by Joe Schneider, the Mayor, and upon
roll call the followingwere found to be presents Mayor Joe Schneider and the
fol l owing members of the c i ty Counc i I: Lester 4 Boone, James E. Gaston, Jr.,
William J:. Nelson, Walter 0. Poser. The following were found to be absents
Alton E. Schermer, The Mayor presidod and Marie. Moore, the city clerk, who was.
aliso present, acted as clerk:of the meeting. The mayor stated that a quorum
was present and. dec I ared: the meeting open for the transaction of business.
The minutes of the previous regular and special meetings were read and:
approved.
Motion by Councilman Gaston seconded by Councilman Nelson that the applica-
tion of W. F. Howie for beer permit at the Fairhope Easi"no be approved. Motion
carried.
John Henry met with the, CounciI pertaining to the, fishing dock at Fty
Creek.. Mr. Henry i s, to meet i wi th the, Harbor Board and George Dyson to work out
this problem,.
Motion by Councilman Nelson seconded by Councilman G=aston that th$ foHow-
i ng, Reso I uti on be. adopted. Motion carried.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAIRHOPE, ALABAMA* that
Joe Schneider, Mayor of the City of Fairhope, be authorized to execute a contract
between the C i ty of Fairhope., and the Lou i sv i 1 le and Nashvi I le Rai I road. company/
permitting the City to install a gas pipe line crossing under the railroad's
right-of-way and tracks.at Stapleton, Alabama.
CouncHman Nelson introduced the following Ordinance which was. seconded by
Councilman Poser and read to the meeting,
ORDINANCE #i'=�5�
BE I T O-RDA I NED BY THE C I TY C OUNC I L OF THE C I TY OF FA I RHOPE, ALABAMA, that
it shall be unlawful for any person to store, sell or offer for sale any
IN,uefied petroleum gas within the City or its police jurisdiction without having
complied:with al,1 regulations prescribed by the National Board of Fire Under-
.utt i ters and: without having rece i ved a permit from the proper officers of the
City for such purpose. This, Ordinance, does not apply to Liquid Petroleum gas
stored by consumer for domestic consumer use.
This Ordinance shall: be effective immediately upon its passage.
A letter from Rockwell Meter Company pertaining to park.i ng meters previously
indtat led on, the beach was read and di scussed by the Mayor and Counc i li and:turned
over to the City Attorney for reply.) ��� )) ::�L -} - �,
Discussion was had of the proposed sale of bonds for the purpose of financing
construction of cap%tali improvements to the sanitary sewer system of the city.
After such discussion the following resolution was introduced by Councilman Poser
and read! to the meeting::
BE IT RESOLVED by the Mayor and City Council of the City of Fairhope (her41n
called "the• c i ty'l�) to the State of Alabama. as follows:
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(1) $1,000,000 principal amount of Water, Gas
and Sewer Revenue Bonds of the city to be dated December
1, 1961, more particularly described in the Notice of
Bond Sale authorized in paragraph (2) hereof, will be
offered by the city for sale at public auction at the
city hall in said city beginning at 2:00 o'clock, P. M.,
Central Standard Time on November 28, 1961. The said -
bonds are proposed to be issued for the purpose of fi-
nancing capital improvements to the city's water works
and sanitary sewer system and its natural gas distribution
system. The bonds will be payable solely out of the reve-
nues from.the said systems, and will be secured by a pledge
of said revenues and by a statutory mortgage lien on the said
systems. The details pertaining to the said bonds will be
set forth in an ordinance to be adopted by this council at
the time of the sale of the said bonds in the event any
bid for the purchase thereof should be accepted.
(2) Thenayor of the city is hereby authorized
and directed_to,cause a Notice of Bond Sale to be published
in The Fairhope Courier, a newspaper published and having
general-c rcu at own Enn 'the city, once a week for two consecu-
tive weeks, the first publication to be not less than ten
(10) days prior to the date fixed for the opening of bids;
and,to cause copies of the said notice to be circulated among
banks and securities dealers by the city's fiscal agents.
The said Notice of Bond Sale to be so published and circu-
lated shall be in substantially the following form:
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JOV
NOTICE OF BOND SALE
$1,000,000
City of Fairh6pe, Alabama
Water, Gas and Sewer Revenue Bonds
Series 1961
Dated December 11 1961
The City. of Fairhope (herein called "the city" ),
a municipal corporation in the State of Alabama, will offer
the bonds above referred to (herein called "the bonds") for
sale at public auction at the City Hall in the city at 2:00
o 1 clock, P. M. , Central Standard Time, on
NOVEMBER 28, 1961.
The bonds will be in the denomination of $1,000 each, will
be numbered consecutively from 1 up, and will mature in
numerical order on December 1 in the following aggregate
principal amounts and years (all inclusive).: $15,000 in
1962 to 1967; $20,000 in 1968 to 1972; $35,000 in 1973 and
1974; $40,000 1975 to 1979; and $45,000 in 1980 to 1991.
Those maturing in 1972 and thereafter will be subject to re-
demption at the option of the city, as a whole or in part
in inverse numerical order, on December 1, 1971, and on any
subsequent interest payment date, after prior notice given
not less than thirty (30) days before the date fixed for
redemption by publication in a financial journal published
in New York City and in a newspaper published in Mobile,
Alabama, at a redemption price for each bond redeemed equal
to its face value plus accrued interest thereon to the date
fixed for redemption and a premium equal to one year's in-
terest thereon. Interest on the bonds will be payable semi-
annually on June 1 and December 1. The bonds will be issued
in bearer form with semiannual interest coupons attached.
The bonds will be issued for the purpose of re-
funding the city's outstanding $336,000 principal amount
of First Mortgage Gas Revenue Bonds dated February 1, 1950
(herein called "the 1950 gas bonds"), and constructing
capital improvements to the water system forming a part of
the city's consolidated water works and sanitary sewer sys-
tem (herein called "the water and sewer system") and to the
city ,s natural gas distribution system (herein called "the
gas system"), and will be payable solely out of the revenues
derived from the operation of the water and sewer system
and the gas system (herein together called "the systems").
The bonds will be secured pro rata by a statutory mortgage
lien on the systems and by a pledge of the revenues from
the operation of the systems, to the extent necessary to pay
the principal of and interest on the bonds at the respective
maturities of said principal and interest. The bonds will
be issued under a trust indenture to be dated as of December
11 1961 (herein called "the indenture"). The said pledge and
the agreements in the indenture will be subject to the
followin : (a) with respect to the water and sewer system
only, (i a pledge of revenues from the water and sewer system
for the benefit of the Mortgage Water and Sewer Revenue Bonds
of The Water Works and Sewer Board of the City of Fairhope
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(herein called "the board") dated July 1, 1950, now out-
standing in the principal amount of $194,000 (herein
called "the 1950 water and sewer bonds"), and a mortgage
and deed of trust by the board to The Merchants National
Bank of Mobile (herein called "Merchants Bank") securing
the 1950 water and sewer bonds, and (ii) a pledge of
revenues from the water and sewer system for the benefit
of the Water and Sewer Revenue Bonds, Second Series, of
the board dated July 1, 1953, now outstanding in the prin-
cipal amount of $60,000 (herein called "the 1953 bonds")
and a mortgage and deed of trust to Merchants Bank securing
the 1953 bonds; and (b) with respect to the gas system only,
a pledge of revenues from the gas system for the benefit of
the 1950 gas bonds and a mortgage and deed of trust by the
city to Merchants Bank securing the 1950 gas bonds; and (c)
with respect to both of the systems, a pledge of the reve-
nues from the systems for the benefit of the city's Water,
Sewer and Gas Revenue Refunding Warrants, Series 1958,
dated December 1, 1958, which on December 1, 1961, will be
outstanding in the principal amount of $165,000 (herein
called "the 1958 warrants"), and a mortgage and deed of
trust by the city to Merchants Bank securing the 1958 war-
rants (the 1950 water and sewer bonds, the 1953 bonds and
the 1958 warrants being herein together called "the under-
lying securities"). The city has assumed the obligations
of the board with respect to the 1950 water and sewer
bonds and the 1953 bonds. The city will call for redemption
on February 1, 1962, the 1950 gas bonds thereafter maturing
and will take all steps necessary to effect the retirement
of all of the 1950 gas bonds on February 1, 1962.
The said mortgages and deeds'of trust securing
the 1950 gas bonds and the 1950 water and sewer bonds are
closed mortgages. The city will agree in the indenture
that no further securities will be issued under the respec-
tive mortgages and deeds of trust securing the 1953 bonds
and the 1958 warrants.
The indenture will provide that additional bonds
(herein called "additional bonds"), secured on a parity with
the bonds, may from time to time be issued by the city under
the indenture, upon compliance with certain conditions set
forth in the indenture, including the filing with the trustee
under the indenture of (1) a certificate by a certified pub-
lic accountant that the average annual net revenues from the
systems during the two fiscal years of the city next preceding
the issuance of the additional bonds then proposed to be issued
were not less than 1150% of the maximum annual principal and
interest requirements in any then succeeding fiscal year with
respect to the underlying securities and all bonds that will
be outstanding under the indenture immediately following the
issuance of the additional bonds then proposed to be issued,
or (2) evidence that a new rate schedule has been adopted by
the board for any one or more of the systems and a cer-
tificate by an independent engineer satisfactory to the said
trustee that the average annual net revenues from the systems
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)01
during the two fiscal years next preceding the issuance
of the additional bonds then proposed to be issued would,
if said new rate schedule had been in effect throughout
said two fiscal years, have been not less than 150% of the
maximum annual principal and interest requirements in any
then succeeding fiscal year with respect to the under-
lying securities and all bonds that will be outstanding
under the indenture immediately following the issuance of
the additional bonds then proposed to be issued.
The indenture will contain a requirement for
annual audits, a requirement for maintenance of insurance
on the systems and fidelity bonds on employees handling
funds applicable thereto, a requirement for maintenance of
the systems in good repair, a requirement for maintenance
of rates for service from the systems sufficient to make
the required monthly payments into the special funds here-
inafter referred to, a provision that no free service from
the systems will be permitted, and other provisions cus-
tomarily incorporated in similar proceedings. The said pro-
ceedings will also provide for the creation and the main-
tenance, out of the revenues from the systems remaining after
compliance with the applicable provisions of the aforesaid
mortgages and deeds of trust whereunder the underlying se-
curities were issued, of (a) a special fund for payment of
the principal of and interest on all bonds issued under the
indenture, into which the city will agree to deposit monthly,
out of the said revenues, amounts sufficient to pay such prin-
cipal and interest at their maturities;(b) a special fund for
payment of costs of operation -and maintenance of the systems
(this fund to become effective only when certain speclai
accounts for the same purpose are discontinued on retirement
of the underlying securities); (c) a special fund to be held
as a reserve or cushion for payment of said principal and
interest into which the city will agree to deposit monthly,
out of the said revenues, a sum sufficient to build up over
a period of 72 months a reserve equal to the annual prin-
cipal and interest requirements on the bonds (such monthly
payments to be increased proportionately upon the issuance
of the first additional bonds and any of the other addi-
tional bonds); and (d) a special fund for capital improvements
and replacements to the system, into which the city will agree
to deposit monthly, out of the said revenues, sums sufficient
to build up over a period of 72 months the sum of $25,000.
The purchaser of the bonds shall have the privilege
of designating as the trustee under the indenture any bank
authorized to administer trusts and qualified to do business
in this state; provided, that the charges of the trustee so
designated must not exceed the charges customarily made by
other banks for similar services. The bonds will be payable
at the office of the trustee, which will act also as deposi-
ory for the special funds referred to in clauses (a), (c),and
d) of the next preceding paragraph hereof. The city reserves
the privilege of designating the depository for the special
funds referred to in clause (b) of the said paragraph.
The statutes under which the bonds will be issued
provide that they are legal investments for fiduciary funds
and for savings banks and insurance companies organized un-
der the laws of Alabama.
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The bonds will be sold to the bidder whose bid
reflects the lowest net interest cost to the city computed
to the respective maturities of the bonds; provided, that
the city reserves the right to reject any or all bids. Each
bidder is invited to name the rate or rates of interest to
be borne by the bonds; provided, that not more than three
different rates of interest may be named (though each such
rate may be repeated in or out of sequence as often as de-
sired), all bonds of the same maturity shall bear the same
rate of interest, each bond must bear the same rate of in-
terest during its life, and no supplemental interest coupons
will be permitted. All bids shall be subject to the follow-
ing conditions: no bid will be considered for less than all
of the bonds; accrued interest must be paid to the date of
delivery of the bonds; and the successful bid must be so,com-
puted that the purchase price will be not less than the
face value of the bonds plus such accrued interest.
Each bidder must qualify to bid by depositing
with the city before the bidding begins a cashier's check
or certified check for $20,000.00 drawn on a member bank of
the Federal Reserve System, and payable to the order of the
city, as evidence of good faith and in guaranty of perform-
ance of the successful bid if the person making the deposit
should become the successful bidder. The checks of the un-
successful bidders will be returned to them following the
sale. No interest will be allowed on any such checks.
Delivery of the bonds to the purchaser thereof
will be made at Birmingham, Alabama, against payment there-
for in bankable funds. It is anticipated that the bonds will
be delivered within 45 days from the date of the sale, and if
the bonds are not tendered for delivery within 60 days from
the date of the sale, the successful bidder may at his option
terminate his contract of purchase. The bonds will be accom-
panied by customary closing papers, including a certificate
stating there is no litigation threatened or pending affect-
ing the validity of the bonds, the said pledge, or the inden-
ture. The bonds will be sold subject to their approval by
Messrs. White, Bradley, Arant, All & Rose. The city will
furnish without cost to the purchaser the printed bonds and
the said opinion. No conditional bids will be considered
except that all bids will be considered to be conditione4
upon the provisions of this invitation.
For further information write or telephone the
city's fiscal agents, Hugo Marx & Co., at their offices in
either Birmingham or Montgomery, Alabama.
CITY OF FAIRHOPE
By: Joe Schneider
Its Mayor
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Adopted and approved' th i s day of November, 1961,
Mayor
Authenticated:
City C ler
Councilman Gaston moved that the rules be suspended and unanimous consent
granted: for i'mmed i ate con si derat lion of and action on said. resolution.. which motion,
on -being seconded by Councilman Nelson was, put to vote and the- fol Lowing vote
thereon was recorded: Yeas: Mayor Schneider and Councilmen Boone, Gaston, Nelson
and Poser. Nays.: None. Tfie mayor thereupon dec taYed: that the motion for unanimous
consent for immediate consideration of and aetion,uporr said resolution had been
unanimously carried. Councilman Gaston then moved that the said resolution be
finally adopted as read,, which motion, on being seconded by Councilman Poser
was put to vote and, the following vote was recordedt Yeast Mayor Schneider and
Councilmen Boone„ Taston,, Nelson and Poser. Naysr None. The Mayor thereupon
announced that the motion,for adoption of said resolution had been unanimously
carried and he then signed the resolution.
Motion by Councilman Nelson seconded by Counci Imam Poser that the Mayor be
authorized and instructed to write letter of intent to accept proposal of
C hIcago Bridge and Iron Co., bow bidder on water tank, for construction of a
1,000,000 ga•I1on water tank as per their Letter of request. Motion carried.
The Counci li discussed amending Business License Ordinance and ai Hand BiII
Ordinance. No action taken.
The. subject of old style pay phones in Fairhope was discussed and the
City Business Administrator was instructed to write to the Southern Bell Telephone
Company requesting them to consider installation of new style pay phones.
Motion by Councilman Boone seconded by Councilman Gaston that Ordinance
j2811 introduced at the regular meeting of October 23, 1961 be adopted as
i ntroduced.Upon being put to vote the following vote was recorded: Yeas: Council—
men Boone, Gaston, Nelson and Poser. Nays: None. Motion carried.
ORDINANCE # 28'1
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAIRHOPE, ALABAMA*
AS FOLLOt
Section 1. Whenever paving is cut for any utiliity service there shall be
as charge of $30.00 for replacing paving.
Section 2. This, paving is to be accomplished by City forces andindividivally
billed and paid for before final connection wiil.l be made.
Section 3, All Ordinances in conflict with this Ordinance are hereby
:repealed.
Section 4. This Ordinance shall go into effect immediately upon its passage.
Motion by C ounc i I man Nelson seconded by Counc i I man Poser that Ordinance 7#282
introduced: at the .regular meeting of October 23,. 1961 be adopted as introduced:
Upon being put to vote the fol,16wing vote was recordedi: Yeas: Councilmen Boone,
Ga)storr, Nelson and: Poser. Nays: None. Motion carried.
ORDINANCE # 282
AN ORDINANCE TO AMEND SECTION 3 of ORDINANCE # 132 as amended.
Sec.tiiom 3. There shall be a charge of $75.00 for each, sewer permit issued,
which sum shall cover the cost of inspection and suitable adaptee. The charges;
for sewer shall be included in the bill for water services, and no person shall
be permitted:to pay for water or sewer charges without paying for both.
Motion by Councilman Poser seconded by Councilman Gaston that the following
bills be approved for payments Motion carried.
Mauter i ail Sa l es C o..
Burrfornd-Tbothaker- Tractor Co.
Universal Controls Corp.
Brown" s Auto; Service
Fairhope Hardware
Fairhope Auto Parts Co.
Jos. W. Hack
Muel ter Co.
F. H. Maloney Co,
M. & S Service Station
Davis, Meter and Supply
Southern Meter and Supply
Crane �uppty Co..
Hackmeyer Iron Works
Vittichen Chemical Co.
Radc I i ff Maier i arts
Turner Supply Co.
V ictory Electra is Go.
Ray --Brooks Mach i nery Co.
Melton Garage
Western. Lumber and, supply
C i rcu i t Court
McKean Paint and Hdw.e.
Johrr. M. W"arren
Garden Center
Ruffles Co.
Busy Bee Garage
Southern Auto Parts
k.l umpp Motor Coo
City Market
John-,R. C owiiey & Bro.
Fairhope CIipy Products
Coastal C one ret e Co,
Mobi le Welding Supply Co.
Hatf ield and Co.
Hill -Moberg Co.
Dresser Mfg. Division
Fl:exible Pipe Tool Co.
Western Auto
Poser Printing Co.
WM I er Bros.
Jordan C 1 i n iic
Fairhope Welding and Machine Works
Ala:. Wood Preserving Co.
Dialgas
Nix aind;'"F lermi rig
Reynolds Firestone
Gulf Coast Sports and Marine
Jansen Mfg. Co.
Fairhope ourier
Threadgill-Pinson Body Shop
Gaston. Motor Co.
Burroughs
Unitech Gas Pipe Line,C•o.
nter,naFt i on C i t y Mgrs. Assoc.
Virgil Hers -ton
O'Iivere Restaurant
Baldwin Transfer Co.
Len Meyer Co.
Huffman Inns.
E. G. R ickarby,
W. R . Stuart, Probate Judge
Maury Ins.
Standard Oil Company
9.94
4.82
355.00
3.94
7.06
47.20:
130,50
65.26
81.00
13.40
45.24
72.53
163.73
89.32
38.25
36.00
6LI...16
'215:25
1,002.82
63.58
9.86
14.50
2.52
58.20
8.60
87.08
10.,90
27.51
4.89
L'
1.70
64.40;
60,00
17.26
4.00
138.7,0
549.44
208.13
227.06
4.27
34-05
151.95
- 5.00
6.50
718•76
96.8 i
IW,09)
60:34
56.40
12.00,
83.77
34.17
125.37
4.99
7,647.20
2.56
20.00
l 1.35
12,77
113.00
39.37
302.42
61,00
160,B&
483.52
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There being no further business to come before the meeting the same was
on motion duly adjourned.
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Approved
Mayor
Atdrest� !' o-