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Home My WebLink About07-22-1974 Regular Meetingt STATE OF ALABAIJIA COUNTY OF BALDWIN The City Cr)uncil of the City of Fairhope met in regular session at the City Administration Building, 38'7 Fairhope Avenue, Monday, July. 22, 1974 at 7:00 P.M. with the 'following members present: Mayor James P. Nix, Councilmen: David E. Bishop, H. G. Bishop, Sam E. Box, 011ie E. Deese and Barney L. Shull: Minutes of the previous meeting were approved. Motion by Councilman Barney Shull seconded .by Councilman 011ie E. Deese that permit to retail packaged beer be approved for Walter D. Venable, Jr. and Joseph M. Barnett at Ingleside Groeery,860 Fairhope Avenue. Motion carried. Motion by Councilman Sam Box seconded by Councilman David Bishop that since work in Frederick Subdivision has been completed in accordance with the plans and specification, the Performance Bond be cancelled. Motion carried. Motion by Councilman Box seconded by Councilman Shull that Leo Keller be appointed Fire Inspector. Motion carried. Motion by Councilman Sam Box seconded by Councilman David Bishop that the request of Southland Corp. for Beer Permit at Pao -A -Sac be denied until November 1, 1974 at which time they may reapply. Motion carried. Mayor Nix appointed Alane Limerick as Chairman of the Bi-Centennial Committee to replace Mr. George Wolfe who has resigned. Mayor Nix aresented a Beautification Plaque to Bruce and Jeane Byrd for the Village Square on the S. E. corner of Fairhope Avenue and Church Street. Motion by Councilman aam Box seconded by Councilman Barney Shull that the City of Fairhope sell water to the Town of Daphne at the same: rate as sold to West Baldwin Water on an emergency basis only until such time as Daphne's new well is completed. Motion carried. Motion by Councilman Barney Shull seconded by Councilman David Bishop that the City continue $100,00 in -kind service contribution to the Area Agency on Aging. Motion carried. Mayor Nix .reported that Rev. St. Pierre had resigned from the Library Board.. Motion by Councilman Sam Box seconded by Councilman David Bish;)p that Mr. Wm. P. Trewolla be appointed to the Library Board to frill the unexpired term of Rev. St. Pierre which expires May 4, 197?• Motion carried. Councilman Barney Shull requested that action on Community Develop- ment Plan be carried over to the next regular meeting of the Council. Motion by Councilman Sam Box seconded by Councilman Barney Shull that City :renew contract with United Litter Control for two and one half years on same basis as previous contract. Motion carried. Mrs. Maloney met with Council concerning her property on Mobile Avenue S. of V. F. W. Club. Action postponed to give Council an opportunity to cheek.the problem. Mayor Nix presented the following letter of proposal for the Council's considerat�.on : City of Fairhope JAMES P. NIX *0vv 6 YYY11"M ZWBav COUNCILMEN: MAYOR DAVID E. BISHOP P. O. DRAWER 429 HENRY O. BISHOP ' FAIRHOPE. ALABAMA 36532 SAMUEL E. BOX MART[ MOORS 1 Jul 19 •1974 OLLIE E. OBESE CITY CLURK Y BARNEY L. SHULL TO THE CITY COUNCIL: The following proposals are made with the full knowledge that they may not be the final answer to our financial problems. However, I feel it our duty to the citizens of Fairhope to try it before we impose a Sales Tax. As you are well aware, our financial problems stem from the simple fact that we have depleted our Operating Capital and monies ear- marked for transfer to our General Fund to pay for Capital Improve- ments, which in actuality should have been financed and paid for over a long period of time. With this in mind I make the follow- ing proposals: (1) Refinance the Electrical Expansion Project. (Footnote #1) (2) Stop all donated utilities, except to City owned facilities. (Footnote #2) (3) Stop all cash donations and money for advertising, (Footnote #3) (4) Stop all free trash pick ups. \ (Footnote #4) (5) Review all Departments for Overhead Expenditure savings. /' (6) Authorize a short term loan ( 90 Days ) of $100,000. (Footnote #6) (7) Give all employees the remaining 2% of the 5% proposed raise, plus a $50.00 a month cost of living raise. With these proposals, the cooperation of the citizens of Fair - hope, the employees and the City Council, I beleive we can a- viod a Sales Tax at this time. % da�mesP. Nix THE CITY OWNS ITS WATER WORKS, ELECTRIC DISTRIBUTION SYSTEM. GAS SYSTEM AND SEWERAGE SYSTEM Footnote #1 The City borrowed $500,000 on the Electrical Expansion Project originally estimated at $575,000, however in- flation increased the construction cost to $580,000, leaving an $80,000 cash drain on the Electrical Opera- ting Fund. Rivieria Utilities has now agreed to sell the City of Fairhope lines which belong to them with- in the city limits of of Fairhope for $101,000. I recommend that we refinance the Electric Expansion Project by borrowing $700,000 and amortize over a longer period and purchase these lines which will be self•liquefying and an income producer from the start. Footnote #2 A savings of $16,000 per year. Footnote #3 A cash saving to the City of $4,000 per year. Footnote #4 A Saving to the City of $40,000 per year. Citizens can make arrangements with private contractor for a nominal fee, plus land fill to be open six days a week for those who wish to haul their own trash. Also encourage citizens to start compost piles which would take care of leaves, straw, etc. Footnote #6 $100,000 loan will be repaid when Electrical Depart- ment construction has been refinanced, thereby enab l - ing Electric Department to meet obligations to the General Fund.. Footnote #7 If we are to retain competent and qualified employees, it is a must that we help them meet their financial obligations that inflation has brought to us all. f Motion by Councilman H. G. Bishop seconded by Councilman David Bishop that the Council adopt program as presented by Mayor Nix. Motion carried. Motion by Councilman Sam Box seconded by Councilman David Bishop that the Mayor be authorized to negotiate a loan of $100,000.00 for one year with interest payable quarterly, enabling the Elect- ric Department to meet its obligations to the General Fund. Motion carried. Motion by Councilman Sam Box seconded by Councilman David Bishop that the Mayor be authorized to negotiate loan to buy Riviera lines inside the City Limit's and at the end of one year, negotiate for full loan and mortgage the Electrical System. Motion carried. F Mayor Nix, Councilman Barney Shull and Councilman David Bishop are to -meet with school trustees to discuss donations to the schools. Effective August 4, 1974 there will be a charge for trash pick-up. Land fill will be open 6 days a week for all residents of the City to dump trash at no charge. All donations for advertising will,be discontinued effective immediately. 1, r Motion by ' Councilman Sam Box seconded by Councilman Barney Shull that all,"City employees be given a 2% pay increase (balance of 5% increase promised in January, 1974) and a $50.00 per month cost of living incr,'ease effective with the August 2 pay period. All overtime in°the future to be eliminated except during emergencies. Motion carried. Motion by Councilman H. G. Bishop seconded by Councilman Barney Shull that the City ask for bids on Hadar equipment for the Police Department. Motion carried. Motion by Councilman H. G. Bishop seconded by Councilman Sam Box that the City Hall be open on Saturday -mornings from 8:00 A. M. until 12:00'noon for the collection of utility bills, effective August 3, 1974• Motion carried. It was duly moved, seconded and carried that the meeting adjourn. Attest: City Clerk Approved 0