HomeMy WebLinkAbout08-13-1973 Regular Public MeetingEXTRACTS FROM THE MINUTES OF A REGULAR
MEETING OF THE CITY COUNCIL OF THE CITY
OF FAIRHOPE. ALABAMA
The City Council of the City of Fairhope, Alabama,
convened in regular public session in the City H%all in said
City, at 7:00 o'clock P.M. Central Standard Dyiylight Time on
the j3th day of August, 1973. On roll call, the following ans-
wered present:
Mayor James P. Nix
Councilmen: David E. Bishop
H. G. Bishop
Sam E. Box
011ie'E. Deese
B. L. Shull
Absent: None
The City Clerk was also present, and kept the minutes
of the meeting.
The Mayor announced a quorum present and the meeting
open for the transaction of business.
The minutes of the last meeting were read and approved.
Thereupon, the following resolution was introduced in
writing by Mr. David E. Bishop read in full by the Clerk, and
considered by the Council:
A RESOLUTION AUTHORIZING A LOAN IN THE
AMOUNT OF $500,000'FOR THE CONSTRUCTION
AND ACQUISITION OF EXTENSIONS, ADDITIONS
AND IMPROVEMENTS TO THE CITY'S ELECTRIC
SYSTEM AND, AS EVIDENCE THEREOF, THE ISSU-
ANCE, EXECUTION, SALE AND DELIVERY OF
$500,000 PRINCIPAL AMOUNT OF GENERAL OBLIGA-
TION ELECTRIC WARRANTS OF THE CITY OF FAIRHOPE
AND PLEDGING THE REVENUES OF SAID ELECTRIC
SYSTEM TO THE PAYMENT THEREOF
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAIRHOPE,
Alabama, as follows:
Section 1. The City of Fairhope, by and through its City
Council, does hereby find and determine and represent and warrant
as follows:
(a) The assessed value of the property within the cor-
porate limits of the City of Fairhope (hereinafter called the
"City") is not less than $ 6,890,360.00
(b) The City has outstanding the following bonds, warrants,
notes and other obligations which are chargeable against its debt
limit:
General Obligation Warrants dated
August 1, 1970, now outstanding in
the principal amount of $ 227,000.00
General Obligation Warrants dated
October 9, 1970, now outstanding
in the principal amount of $ 64,000.00
Accounts payable in the total amount of $ 75,825.38
(c) The City has outstanding no other bonds, warrants,
notes or other obligations and has incurred no other indebted-
ness of any nature whatsoever, except (1) temporary loans, to
be paid within one year, made in anticipation of the collection
of taxes and not exceeding one-fourth of the annual revenues
of the City, (2) bonds or other obligations issued for the pur-
pose of acquiring, providing or constructing school houses,
to the payment of which obligations the City has pledged a tax
sufficient to pay principal and interest of such obligations at
their respective maturities, (3) obligations incurred and bonds
issued for providing or constructing sanitary or storm water
sewers or street or sidewalk improvements, the cost of which,
in whole or in part, is assessed or to be assessed against the
property drained, served or benefited by such sewers or abutting
said improvements, (4) revenue bonds or other obligations pay-
able solely from the revenues of the facilities acquired from the
proceeds of the sale of said bonds or obligations, all of which
are not includible under Section 225 of the Constitution of Ala-
bama. of 1901, in the limitation of the indebtedness of the City.
(d) The City owns and operates an electric system for
the distribution of electricity in the City and it is necessary
and desirable that the City improve, extend and make additions
to said System at a cost of $500,000. The City does not have
funds to pay such costs and it is necessary, in order to pay the
same, that -the City borrow said amount by the issuance of its
Warrants as hereafter authorized in evidence of such loan and to
secure the payment thereof by a pledge of the revenues of said
System. Said revenues are not now pledged for any purpose or to
any obligations of the City.
Section 2. The City shall borrow $500,000 for the
construction and acquisition of extensions, additions and improve-
ments to its electric system and, as evidence of its indebtedness
therefor, the City shall issue $500,000 aggregate principal
amount of its General Obligation Electric Warrants. The War-
rants shall be dated as of the date of their issuance, shall
bear interest at the rate of 5.20% per annum, payable on
January 1, 1974, on July 1, 1974, and semiannually thereafter
on January 1 and July 1 in each year until paid, shall mature
on July 1 in each of the following years in the following amounts,
shall be in the following denominations, and shall be numbered
consecutively, as follows:
Year Amount Maturing
Denomination
Number
1974
$22,000
$221000
1
1975
_ 3,000,
23,000
2
1976
24,000
24,000
3
1977
25,000
25,000
4
1978
263000
261000
1979
28,000
28,000
6
1980
301000
30,000
7
1981
32,000
321000
8
1982
341000
341000
9
1983
361000
361000
10
1984
39,000
39,000
11
1985
422000
423000
12
1986
45,000
45,000
13
1987
47,000
47,000
14
1988
47,000
47,000
15
Section 3. The Warrants shall be redeemable at the op-
tion of the City in whole or in part, and, if in part, in the
inverse order of maturities and identification numbers, latest
maturities and highest numbers first, on any interest payment
date on or after July 1, 1983, at a redemption price equal to the
principal amount of each Warrant to be redeemed, plus accrued
interest thereon to the redemption date and a premium equal to
twelve months interest thereon. Thirty days' notice of the in-
tended redemption of any of the Warrants shall be given by regis-
tered mail to the payee thereof or to any assignee whose identity
has been made known to the City. Notice of such redemption hav-
ing been so given and funds for the redemption price having been
set aside and made available for the payment of such redemption
price, each of the Warrants so called for redemption shall cease
IJ
to bear interest from and after the date fixed for redemption
unless default shall be made in the payment of the redemption
price thereof.
Section 4. The Warrants shall be payable to John M.
Beasley, or his assignees, at First National Bank of Fairhope,
in the City of Fairhope, Alabama, in lawful money of the United
States of America. Said Warrants shall constitute orders to the
City Treasurer to pay the face amount thereof, at par and without
deduction for exchange or costs of collection, plus interest
thereon, -on the due date thereof, and the City hereby covenants
and agrees to have available adequate funds at said Bank for such
purposes at such times and to provide for the payment of all fees,
exchange and charges for effecting payment at par and without any
deduction.
Section 5. That said General Obligation Electric Warrants
and the form of assignment and the form of registration of said
Warrants shall be in substantially the following form:
(Form of Warrant)
UNITED STATES OF AMERICA
STATE OF ALABAMA
BALDWIN COUNTY
CITY OF FAIRHOPE
GENERAL OBLIGATION ELECTRIC WARRANT
No.
The CITY OF FAIRHOPE, a municipal corporation organized
and existing under and by virtue of the laws of the State of
Alabama (herein called the "City"), for value received, hereby
acknowledges itself indebted to John M. Beasly or his assignees,
in the principal sum of
THOUSAND DOLLARS
and hereby orders and directs the City Treasurer of the City
to pay to said payee or its assignees noted hereon said sum on
July 1, 19 (unless this Warrant shall have been called for
prior redemption and payment of the redemption price duly made
or provided for) in lawful money of the United States of America
and to pay interest on said sum at the rate of five and two -
tenths percent (5.20%) per annum, payable on January 1, 19740
on July 1, 1974 and semiannually thereafter on January 1 and
July 1 in each year until the principal amount of this Warrant
has been paid, upon the presentation of this Warrant to the
City Treasurer for the purpose of noting on the reverse hereof
each such interest payment. Both principal and interest are
payable at the principal office of First National Bank of Fair -
hope, in the City of Fairhope, Alabama, at par and without de-
duction for exchange or costs of collection.
This Warrant is one of a duly authorized issue of $500,000
principal amount of General Obligation Electric Warrants of
the City, issued or to be issued to evidence the indebtedness
of the City for money loaned for a lawful purpose pursuant to
the Constitution and laws of the State of Alabama, including
the provisions of Alabama Code of 1940, Title 37, Section 466
and a resolution and proceedings of the City Council of the City
duly held, passed and conducted. The indebtedness evidenced
by this and the other Warrants of this issue is a general obliga-
tion of the City and the full faith and credit of said City are
hereby sacredly and irrevocably pledged to the punctual payment
of the principal thereof and interest thereon, and said Warrants
are additionally secured by a first and preferred pledge and
assignment of a sufficient amount of the revenues derived from
the electric system of the City after deducting therefrom the
reasonable costs of operating, maintaining and repairing said
System.
This Warrant and the other Warrants of this issue of War-
rants are redeemable at the optio n of the City in whole or in
part and, if in part, in the inverse order of maturities and
identification numbers, latest maturities and highest numbers
first, on any interest payment date on or after July 1, 1983s
at a redemption price equal to the principal amount of the War-
rant or Warrants to be redeemed, plus accrued interest thereon
to the redemption date and a premium equal to twelve months'
Interest thereon. Thirty days' notice of the intended redemp-
tion shall be given by registered or certified mail to the payee
or to any assignee whose identity has been made known to the
City. If any of said Warrants so redeemable shall have been
called for redemption as hereinabove provided, interest shall
cease to accrue from and after the date fixed for redemption,
unless default shall be made in the payment of the redemption
price thereof.
This Warrant is non-negotiable but is transferable by as-
signment noted hereon. Each taker, owner, purchaser or holder
hereof, by receiving or accepting this Warrant, shall consent
and agree and shall be estopped to deny that the City may treat
any person in possession of this Warrant, regardless of how
such possession may have been acquired and regardless of the
genuineness or effectiveness of any assignment, as the absolute
owner for all purposes and payment of principal or interest
to any such person shall discharge all obligations hereunder.
It is hereby recited, certified and declared that all
acts, conditions and things required by the Constitution and
laws of the State of Alabama to happen, exist and be performed
precedent to and in the execution, registration and issuance
of this Warrant, and the adoption of the resolution authorizing
its issuance, have happened, do exist and have been performed
as so required and that the principal amount of this Warrant,
together with all other indebtedness of the City, are within
every debt and other limit prescribed by the Constitution and
laws of the State of Alabama.
IN WITNESS WHEREOF, the CITY OF FAIRHOPE, acting by and
through its City Council, has caused this Warrant to be exe-
cuted in its name and on its behalf by its Mayor and attested
by its City Clerk, and its corporate seal to be impressed hereon,
all as of
CITY F FAIRH E,dLLAMA
By 1
Mayor
S E A L
Atte
y c;.ie
It is hereby certified that this Warrant and the interest
thereon have been registered by me as a claim against the City
of Fairhope, in the State of Alabama, and the revenues pledged
to the payment thereof.
City Treasurer of
the City of Fairhope
A S S I G N M E N T
For value received, the Warrant on the reverse hereof is
assigned to the assignee designated in the left-hand column
below by the owner and assignor designated in the right-hand
column below, without recourse on or warranty by such assignor,
except that he warrants that he is the owner of said Warrant
and has a right to assign it.
ASSIGNEE ASSIGNOR
C.
Record of Interest Payments
The holder of this Warrant acknowledges payment of interest
as follows:
Date Amount Name of Holder
Section 6. The Warrants shall be executed in the name
and on behalf of the City by the Mayor and attested by the
City Clerk and its official corporate seal shall be impressed
thereon and a record kept thereof. Each Warrant shall be
dated as of the date of its issuance. The Warrants and the in-
terest thereon shall be registered by the City Treasurer in the
records maintained by said Treasurer as a claim against the City
and the proceeds of the revenues pledged thereto, which
registration shall be made simultaneously as to all of said
Warrants. Said officers are hereby directed so to execute,
attest, date and register said Warrants.
Section 7. The Warrants shall be general obligations of
the City and the full faith and credit of the City are hereby
sacredly and irrevocably pledged to the punctual payment of the
principal thereof and interest thereon. The City hereby repre-
sents that ad valorem taxes have been levied and hereby covenants
and agrees that such taxes will be levied and collected, insofar
as such taxes may be permitted by the present or any future pro-
visions of the Constitution of Alabama, on all taxable property
in the City and applied to the payment of the principal of and
interest on said Warrants as they respectively mature and come
due in amounts sufficient for such purpose.
Section 8. The City hereby pledges and assigns and cove-
nants and agrees to hold in trust, to be applied solely to the
payment of the principal of and interest on said Warrants as they
mature and come due, a sufficient amount of the entire revenues
of the electric system of the City after deducting therefrom only
the reasonable expenses of operating, maintaining and repairing
said System. The City shall, on or before the 20th day of each
month, set aside and pay into a special fund, to be designate d
"City of Fairhope General Obligation Electric Warrants r_nci al
and Interest Fund", and to be held by First National Bank of
Fairhope, Alabama, to be applied to the purposes hereinafter
provided, the following amount of the entire proceeds of the
aforesaid revenues:,
(a) Beginning July 20, 1973, an amount
equal to 1/6 of the interest due and payable on
the next succeeding interest payment date;
(b ) Beginning July 20, 1973, an amount
equal to 1/12 of the principal maturing and becoming
due and payable on the next ensuing July 1st;
(c) All sums which should have been paid
into said Fund and which have not been so paid.
Said payments shall continue until there shall be held
in said Fund a sum sufficient to pay the principal and interest
then due and thereafter to become due on all of the Warrants
outstanding. The moneys held in said trust fund shall be
applied solely to the payment of the principal of and interest
on said Warrants or to the payment of the redemption price of
any Warrants and the expenses of such redemption; provided, how-
ever, on the written agreement of the City any moneys on deposit
in said fund may be invested in bonds, notes, certificates and
other general obligation indebtedness of the United States of
America which mature within 24 months from the date of purchase
or are subject to redemption at the option of the holder. The
City covenants and agrees that it will fix and maintain such rea-
sonable rates and charges for services supplied or furnished by
its electric system and make such collections from the users
thereof as shall produce revenues sufficient to pay all expenses
reasonably necessary for the reasonable and proper operation,
administration, maintenance and repair of said system, and to pro-
vide for the payment of the principal of and interest on the War-
rants herein authorized. The City hereby further covenants and
agrees that it will apply the entire revenues derived from said
system to such purposes and that it will diligently enforce and
collect the rates, fees and other charges for the services and
facilities of said system and will take all steps, actions and
proceedings for the enforcement and collection of such rates,
charges and fees as shall become delinquent, to the full extent
permitted or authorized by law.
Section 9. The City hereby covenants and agrees that,
if the principal of and interest on said Warrants are not paid
promptly as such principal and interest mature and come due,
it will pay to the payee or assignee of said Warrants all ex-
penses incident to the collection of any unpaid portion thereof,
including a reasonable attorney's fee. The Warrants will bear
interest at the legal rate from and after maturity.
Section 10. The terms, provisions, conditions and cove-
nants set forth in this resolution constitute a contract between
the City and each owner of any of said Warrants and shall remain
in effect until the principal of and interest on said Warrants
shall have been paid in full.
Section 11. The Warrants, duly executed, shall be delivered
to the payee named therein, upon the payment to the City of the
par value of each Warrant so delivered. The Mayor and the City
Clerk and the City Treasurer, or either of them, are hereby author-
ized and directed to effect such delivery and, in connection
therewith, to deliver such closing papers containing such repre-
sentations as are required to demonstrate the legality of said
Warrants, including the assessed value of taxable property of
the City and the indebtedness of the City. The Mayor, the City
Clerk, and the City Treasurer shall give a receipt or receipts
to the said purchaser for the purchase price paid and such re-
ceipt or receipts shall be full acquittal to said purchaser and
said purchaser shall not be required to see to or be responsible
for the application of the proceeds of said Warrants.
Section 12. In the event that any one or more of the pro-
visions of this resolution or of the Warrants shall, for any
r,
reason, be held illegal or invalid, such illegality or invalid-
ity shall not affect the other provisions of this resolution or
said Warrants and this resolution shall be construed and en-
forced as if such illegal or invalid provision had not been con-
tained therein.
Section 13. All ordinances, resolutions and orders or
parts thereof in conflict with this resolution are, to the extent
of such conflict, hereby repealed.
Section 14. That this resolution shall take effect imme-
diately upon its adoption.
S E A L
Attest:
City Clerk
It was moved by Mr. Sam Box that all rules and regu-
lations which, unless suspended, would prevent the immediate con-
sideration and adoption of said resolution be suspended, and
that unanimous consent to the immediate consideration and adop-
tion of said resolution be given. The motion was seconded by
Mr.Ed Bishop and on roll call was unanimously adopted, those
answering aye being:
Mayor James P. Nix
Councilmen: David E. Bishop
H. G. Bishop
Sam E. Box
011ie E. Deese
B. L. Shull
Nays: None
The Mayor declared the motion carried.
After said resolution had been discussed and considered
in full by the Council, it was moved by Mr. 'Ed Bishop that
said resolution be now placed upon its final passage and adopted.
The motion was seconded by Mr. Barney Shull s The auestion being
put as to the adoption of said motion and the final passage of
said resolution, the roll was called with the following results:
Ayes: Mayor James P. Nix
Councilmen: David E. Bishop
H. G. Bishop
Sam E. Box
011ie E. Deese
B. L. Shull
Nays: None
The Mayor declared the motion carried and said resolution
passed and adopted as introduced and read.
It was moved and seconded that the meeting be adjourned.
Motion carried.
Minut�eh approved:
S E A T_,
Attest;:..I,,
City
r
STATE OF ALABAMA )
BALDWIN COUNTY )
The undersigned, as City Clerk of the City of Fair -
hope, Alabama, hereby certifies that the foregoing pages con-
stitute a true, full and complete copy of all those portions
of the minutes of a regular meeting of the City Council of
said City held on August 13,1973, pertaining to the introduc
tion, consideration and adoption of a resolution authorizing
a loan in the amount of $500,000 for the construction and
acquisition of improvements to the City's electric system; and
I further certify that the copy of the resolution set forth
therein is a complete, verbatim and compared copy of the
resolution duly introduced and adopted at said meeting, the
original of which is on file and of record in the minutes book
of the City.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the official corporate seal of the City of Fairhope,
Alabama.
e
S E A L
GENERAL FUND
Autry Greer & Sons, Inc.
Alabama League of Municipalities
State of Alabama Personnel Department
Bedsoles Department Store
Baldwin Computer Service
'Bill Steber Cheverolet
B & D Standard
Burford Equipment Company
Certified Laboratories
Coastal Concrete
Cowin Road Machinery, Inc.
John V. Duck
D.L.D. Parking Lot Striping
Exxon Company
Electronic Services, Inc.
Fairhope Title & Survey Co., Inc.
Fairhope Courier
Fairhope Clay Products
Fairhope Hardware & Construction Co.
Foley Tractor Co.
Foster & Company, Inc.
Fuel Oil Supply Co.
Fairhope Auto Parts
Gulf Mobilphone Alabama, Inc.
Lee Groves
Gaston Motor Co.
Gulf Oil Corporation
Goodyear Service Stores y
Jack Cocke & Co. Inc. f
Jack Etheridge
McCain Uniform Co. Inc.
J. I. Cooper
Mobile Electric Garage '.
Materail Sales
Minnesota Mining & Manufacturing.Co.
Nelson -Pinson Auto Body Repair
Otasco
Paymaster Checkwriter Co.
Prew Uniform Co.
Parker House
Ponder Co.
Quality Printing & Supply
Radcliff Materials
Rudy's Automotive Supply Co.
Norrid Smith
Fairhope Ambulance Service
Shepherd Printing & Stationery Co.
Stallings -Bulldozer
Southwest Alabama Health Planning Council
Standard Equipment Co.
Silverhill Farmers Association
Southern Auto Parts
Waller Brothers
Unijax
Western Lumber & Supply Co.
W.D. Ford & Associates,
National Linen Service
Fairhope Laundry & Cleaners
.Ruffles
Thoss Sporting Goods
Julwins Restaurant
Meyercord Company
R.E. Yohn
Pitman Realty
Total
Ir
s
48.99
589.50
208.75
6.00
72.00
50.83
9.75
3,460.90
203.35
39.90
238.16
46.50
581.50
1,548.79
90.00
427.50
6.05
50.00
2.24
33.38
278.42
319.05
40.51
269.84
60.38
75.86
160.32
171.65
17.75
9.30
91.10
50.00
263.25
63.36
302.92
197.40
56:90
149.50
36.00
39.15
656.68
4.00
94.90
8.96
70.00
85.00
41.13
2.03
360.70
101.50
31.00
88.20
36.40
85.56
56.81
76.99
10.40
52.30
26.67
11.95
198.95
282.50
40.50
1,497.00
14,286.88
ra BILLS PAID
Huffman -Robertson ;nsurance Agency .� #;}
i 738.51
Autrey Greer & Sons w '
47.07
Kerr-McGee Chemical Corp.
1.70
Singer , �+ ,� -
395.00
Unijax
79.10
Nix & Fleming Supply
16.00
Gulf Oil Corporation
369.91
Goodyear Service Store
123.38
Jack Cocke & Co. Inc.
91..20
South Central Bell
546.30
Material Sales.
182.73
Electronic Services
534.60
Fairhope Welding & Machine Works
3.00
Exxon Company
894.44
Ingleside'Grocery
5.20
Coastal Concrete
515.24
Total
4,543.38
RECREATION FUND
Brannan Sporting Goods
67.50
B. & D. Standard
3.51
West Baldwin Water
9.00
Little League:
Nix & Fleming
11.72
Dick Nordstrom
260.00
Thomas Hospital
25.75
Riviera Utilities
•07
Delchamps
17.28
Coca Cola Bottling
45.76
Smiths Bakery
16.80
Greers
2.24
Sportsman Store
9.64
Dairy Fresh
66.00
Gulf Sausage Company
48.00
Brannan Sporting Goods
119.80
Total
703.07
BILLS PAID
Autry Greer & Sons, Inc.
9.60
Nix & Fleming Supply Co.
-44.65
Material Sales
6.08
Total
60.33
John V. Duck
Moore Handley, Inc.
Vasko Electric Company
AIRPORT FUND
1
s
15.00
384.64
36.00
Total 435.64
AY
�4
i
W
ELECTRIC FUND
Altec Incorporated
Baldwin Computer Serice
Bill Steber Cheverolet
B. & D. Standard
Coastal Concrete
Duro-Test Corporation
Fuel Oil Supply
Fairhope Tire & Retread
Gaston Motor Company
Hatfield & Company
Hill Soberg Company, Inc.
Icemaker Distributors, Inc.
Lift Parts Service Company
Moore Handley, Inc.
Nix & Fleming Supply
St. John Engineers
S & C Electric Company
Southern Auto Parts
Southeastern Testing Laboratories; Inc.
B ILLS PA ID
Southeastern Power Administration ,
Alabama Power Company
Hill-Soberg Company
Nix & Fleming Supply Co.
South Central Bell Telephone
Material Sales_
Kuhlman . '. + k
Coastal Concrete
Moore Handley, Inc.
GAS FUND
United Gas Pipe Line
Autrey Greer & Sons
American Meter Division
Baldwin Computer Service
B & D Standard
Control Inc.
Consolidated Pipe & Supply Co.
Davis Meter & Supply Div.
Empire Pipe & Supply Co.
Foley Tractor Company
Fuel Oil Supply
Gaston Motor Company
Marine Specialty Company, Inc.
Material Sales
Ponder Company
Pringle Gas Meter Repair
Rudy's Automotive Supply
Southern Auto Parts
Vulcan Signs & Stampings, Inc.
Western Lumber & Supply Co.
Western Auto
BILLS PAID
r
Singer American Meter Division
Material Sales
Total
Total
Total
532.56
268.22
1.85
7.15
84.97
174.51
11.04
8.00
4.61
13,202.04
3,615.94
47.70
30.00
7,716.28
445.43
11,712.50
555.00
24.47
14:20
38,456,47
3,723.90
39,907.44
2,753.44
544.10
60.54
29.01
2,029.00
66.94
11.091.13
60,205.50
9,696.27
2.31
2,473.26
268.21
7.90
2,022.70
1,507.60
189.20
37.75
45.38
11.50
13.09
716.02
13.00
8.70
277.25
45.22
44.83
123.50
7.84
9.14
17,520.67
2,733.51
37.61
2,771.12
WATER & SEWER FUND
j
Autry Greer & Sons
Baldwin Computer Service
B & D Standard
Fairhope Texaco
Fuel Oil Supply
Fairhope Auto Parts
Gulf Rubber & Gasket Co.
Gaston Motor Company
McKesson Chemical Company
Material Sales
Moore Handley, Inc.
Neptune Meter Company
Ponder Company
Silverhill Farmers Association
Total
BILLS PAID
South Central Bell Telephone
Material Sales
Fairhope Welding & Machine Works
Moore Handley
Total
i
t
3.13
268.21
3.10
2.00
1.50
12.45
41.06
4.78
501.50
11.97
2,041.35
1,012.00
369.60
150.00
4,422.65
22.89
36.42
52.00
150.00
261.31