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HomeMy WebLinkAbout11-28-1961 Regular MeetingMINUTES OF A MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF FAIRHOPE, ALABAMA, HELD ON NOVEMBER 28, 1961 The Mayor and City Council of the City of Fairhope, Alabama, met in adjourned regular session at the city hall in the city on November 28, 1961, at 2:00 o'clock, P. M., pursuant to adjournment of the regular meeting held on November 27, 1961. The meeting was called to order by Joe Schneider, the mayor, and upon roll call the following were found to be present: Mayor Joe Schneider and the following members of the city council: Lester I.Boone;/1 James E. Gaston, Jr, William J..-Nelson, Walter 0. Poser, and Alton E. Schermer. The following were found to be absent: The mayor presided and Marie Moore, the city clerk, who was also present, acted as clerk of the meeting. The mayor stated that a quorum was present and declared themeeting open for the transaction of business. The mayor stated that this was the time and, Place which had been set by resolution adopted by the Mayor and City Council of the city on November 13, 1961, for the sale at public auction of $1,000,000 principal amount of Water, Gas and Sewer Revenue Bonds, Series 1961, of the city to be dated December 1, 1961; that a "Noticecf Bond Sale" had been published in The Fairhope Courier, a newspaper published and having general circulation in the city, in the issues of said newspaper published on November af5, 1961, r ,titi and November -2-3, 1961, in the form provided in the aforesaid resolution; and that said notice had been circulated among securities dealers who customarily bid on securities issued by municipalities in the State of Alabama. Councilmanthen introduced the following resolution in writing, which was read to the meet- ing : BE IT RESOLVED by the Mayor and City Council of the City of Fairhope, Alabama, that the city does now proceed to offer for sale at public auction $1,000,000 principal amount of Water, Gas and Sewer Revenue Bonds, Series 1961, of the city to be dated December 1, 1961, pursuant to the Notice of Bond Sale authorized by resolution of the city adopted November 13, 1961; and that the mayor shall act as auctioneer in conducting said sale. Councilman �--d1 moved that the foregoing reso- lution be, dopted, which motion was seconded by Councilman and upon roll call the following vote was recorded: Yeas: Mayor Schneider and Councilmen Boone Gasto,Nelson'. Poser and Schermer n' � Nays: None. The mayor thereupon declared the resolution had been duly adopted. The Mayor then announced that those who desired to qualify as bidders at the sale of the said bonds should deposit with'the city clerk a cashier's check or a certified check for $20,000 payable to the order of the city and drawn on a bank having membership in the Federal Reserve System; whereupon, the following qualified as bidders by depositing such checks: - 2 - , The bidding proceeded by the bidders who had qualified as bidders and after all bidders had dropped out and ceased bidding except -3- Jry who made the last bid for said bonds, the Mayor and Council then proceeded to consider the bids so made and it was ascertained by the Mayor and Council that the bid filed by for the purchase of the said bonds at a purchase price re - fleeting an average annual net interest cost to the city of computed to the respective maturities of the bonds, was the best bid received by the city and repre- sented the lowest net interest cost to the city. There being no further business to come before the meeting the same was on motion duly adjourned.until December 1961, at7,',3o o 1 clock, P. M. Mayor Olt y Clerk -4- J�\ County of• r / City of Alabama in accordance with made a part of this contract, trued interest to hate of delivery to u n Birrintrham, Alabama, f o r �`�� (ponds, �.). The securities to bear interest rates, wh.ch rates are to be tabulated by us and given to you viithin zxS hours from date, The interest rates are`to be so tabulated that the interest cost to you will equal_ 31 V?7 % for the money borrowed, figured to the maturity of the securities* Interest cost to be figured�as is commonly figured by reputable investment houses. your notice of sale, crhich is hereby we will pay you �0 0 iglus ac-- The securities to mature as follows: This bid is subject to (your furnishing to us) (-ot�rr-1 — t e u uali ied pprovi,ng ler 1 �p ,nio , satisfac- tory to us, of 1� _ attorneys approving the 1 gal11/:12� y i uanc of t e secu ities and the un- qualified pledge of /!iv�-,/�Tiifor the payment of the said securities both'as to principal and interest a.s they mature. The securities are to be delivered to us within ��(.O_ days from date of this contract. In the event you cannot deliver the securities within this period of time, then vie shall have the option of taking up and paying for said securities at any time within an additional period of ----i ! days. We enclose herewith our certified check in the amount of :a_120M which is to be retained by you, uncashed, untiZ we carry out the terms of this contract, at which time it is to be returned to us or deducted from the purchase price of the securities, In the event we do not carry out the terms of this con- tract; then this check is to be retained by you as full and complete liquidating damages. In the event you cannot carry out the terms of this contract, then this check is to be immediately returned to us, t,A§t-�)a'eg r e d to pay all expenses necessary and incidental to the issuance of these securities. If this is with your agreement and understanding, please signify your acceptance on the bottom hereof. Accepted by Linute Books this the Respectfully submitted, HUGO MARX & CO. BA a Y resolution, du ly adopted and spread on the %o day of , 10 ATTE .;T : J INTEREST COST: 1.