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HomeMy WebLinkAbout05-13-2002 Regular Meeting2883 STATE OF ALABAMA )( COUNTY OF BALDWIN )( The City Council, City of Fairhope, met in regular session at 5:30 p.m., Fairhope Municipal Complex Council Chamber, 161 North Section Street, Fairhope, Alabama 36532, on Monday, 13 May 2002. Present were Mayor Timothy M. Kant, Councilmembers: Robert C. Gentle, Michael A. Ford, Debbie W. Quinn, Pauline Anders, and Cecil Christenberry; City Attorney Marion E. Wynne, and City Clerk Geniece W. Johnson. No one was absent. There being a quorum present, Mayor Kant called the meeting to order. The Pledge of Allegiance was recited, and Pastor Wallace H. Robinson of Fairhope Christian Church, gave the invocation. Councilmember Anders moved to approve minutes of the 22 April 2002, regular meeting after the following amendment. Seconded by Councilmember Quinn, motion passed unanimously. "Amendment to the April 22, 2002, minutes: Councilmember Christenberry asked for clarification on saving $50,000.00 by using Merchant Capital for the City's investment banker. Councilmember Anders, Chairperson of the Finance Committee, explained that the $50,000.00 will be saved by borrowing 3 million dollars from a bank, and pay this debt off in five years. Therefore, the cost of printing bonds would be reduced. Susan Schreibman with South Alabama Regional Planning Commission presented the results of the Needs Assessment for the Baldwin County Public Transit Coalition. Ms. Schreibman reported that a Needs Assessment was performed to determine the characteristics of the attitudes of the residents of Baldwin County towards their transit service needs. This included a socio-economic analysis, a random sample survey analysis, and conclusions to help formulate a plan for public transportation service in Baldwin County. The socio-economic analysis utilized the most current U.S. Census data, which indicated that in 2000, Baldwin County's population was 140,415, representing an increase of 43% over the 10-year period from 1990-2000. The maximum growth occurred along the coastal area and also on the Eastern Shore. A random digit dialing telephone survey was conducted over one a week period. A total of 835 households were contacted, 428 of which completed surveys, and the margin of error was 4.7% Efficiency and accuracy were the objectives in obtaining the information, necessitation that the survey be condensed into 21 questions. 2884 13 May 2002 The questions referred to origins and destination for daily typical and work trips, the availability, use and potential use of public transportation and concluded with some basic demographic information of the household, most noted being the employment status and income, and the residential zip code. The responses indicated: • 56% of the typical daily trips were for the purpose of work; • 60% felt that public transportation was available to them; 6% regularly or occasionally use public transportation; • 27% would regularly or occasionally use public transportation in Baldwin County, which represents 38,000 people. • 35% would regularly or occasionally use public transportation to Mobile, which represents 49,300 people; • The largest number of trips (44%) represented trips contained within a single zip code, the next largest (36%) represented trips to adjacent zip codes, and 20% were external trips- 165 to Mobile and 4% to Pensacola; • Major corridors traveled were U.S. 98 and 59. The results were analyzed based on the zip codes for the entire County and also as a percentage of each zip code. Typical trip patterns are shown on Figure ES-1/6. Intra-city travel represented the largest percentages of trips. The inter -zonal trip patterns depict the most movement from Daphne to Mobile, next from Bay Minette to Mobile, Fairhope through Daphne to Mobile, Spanish Fort to Mobile and along the U.S. 59 corridor, between Loxley to Gulf Shores. Understanding the needs of the population will enhance the opportunities for an efficient and effective public transportation system. Councilmember Gentle introduced in writing, and moved for the adoption of the following resolution. Seconded by Councilmember Anders, motion passed unanimously. 13 May 2002 RESOLUTION NO. 833-02 2885 WHEREAS, The City of Fairhope shall enter into an agreement with the State of Alabama, acting by and through the Alabama Department of Transportation for the installation, maintenance, and operation of a traffic signal at the intersection of U. S. Highway 98 and Spring Run Drive/Middle Street in Fairhope, Alabama; and WHEREAS, This Agreement requires participation by the City of Fairhope and the State of Alabama in funding the installation cost. The total estimated cost to install the traffic signal at this location is $40,000.00 with 50% funded by the State of Alabama and 50% funded by the City of Fairhope; and WHEREAS, In the event the final installation cost is less than the total estimated cost, the State of Alabama and the City of Fairhope will share in the cost underrun at the above -mentioned funding ratio. In the event the final installation cost exceeds the total estimated cost, the State of Alabama and the City of Fairhope will share in the cost overrun at the above -mentioned funding ratio. BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF FAIRHOPE, FAIRHOPE, ALABAMA, that Mayor Timothy M. Kant is hereby authorized to execute an Agreement between the City of Fairhope and the State of Alabama, acting by and through the Alabama Department of Transportation for the installation, maintenance, and operation of a traffic signal at the intersection of U. S. Highway 98 and Spring Run Drive/Middle Street in Fairhope, Alabama. Adopted This 13th Day of May 2002. Attes Geniece W. Jofinsoqotity Clerk I, Geniece W. Johnson, duly appointed City Clerk -Treasurer of the City of Fairhope, Alabama, do hereby certify that the above Resolution No. 833-02 is a true and correct copy of a resolution passed and approved by the City Council of the City of Fairhope, Alabama, on the 13th day of May 2002. Geniece W. Johnson, City Clerk -Treasurer Date 2886 13 May 2002 Councilmember Christenberry introduced in writing, and moved for the adoption of the following resolution. Seconded by Councilmember Anders, motion passed unanimously. RESOLUTION NO. 834-02 BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF FAIRHOPE, FAIRHOPE, ALABAMA, that Mayor Timothy M. Kant is hereby authorized to execute a contract between the City of Fairhope and EcoSolutions Environmental Mediation, Management & Planning, Montrose, Alabama, to assist the City of Fairhope in the design and implementation of a Stormwater Management Program as required under the Municipal Separate Stormwater Sewer System (MS-4) NPDES Permit Number ALS000002. The project shall cost $6,800.00. DULY ADOPTED THIS 13`h AY OF May , 2002. ou L Ti othy ant, Mayor Attest Geniece W. Johnson, C Clerk Councilmember Gentle introduced in writing, and moved for the adoption of the following resolution. Seconded by Councilmember Ford, motion passed unanimously. RESOLUTION NO. 835-02 BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF FAMHOPE, ALABAMA, THAT Mayor Timothy M. Kant, is hereby authorized to execute a lease contract between the City of Fairhope and Caterpillar Financial Services Corporation to lease a Caterpillar Wheel Loader and a Industries Cutter for a lease term of 48 months. The monthly lease amount shall be $2,356.82. DULY ADOPTED THIS 13th DAY OF May , 2002. c (1-v /== Ti thy nt, Mayor Attest Geniece W. Johnson, Co Clerk 2887 13 May 2002 City Council reviewed an application for a Beer/Wine Off -Premises License by Margaret J. Williams, dba Williams Grocery, located at 623 Middle Street, Fairhope, Alabama. Councilmember Anders moved to approve the issuance of the license. Seconded by Councilmember Gentle, motion passed unanimously. City Council reviewed an application for a Restaurant Liquor License by Stephen D. Green, dba Mulligan's Irish Bar and Eatery, located at 19270 Scenic Highway 98, Fairhope, Alabama. Councilmember Anders moved to approve the issuance of the license. Seconded by Councilmember Quinn, motion passed unanimously. Councilmember Christenberry moved to grant the request of Fairhope Environmental Advisory Board, requesting permission to amend the By-laws of the Environmental Advisory Board to allow members to live within the planning jurisdiction of Fairhope. Seconded by Councilmember Gentle, motion passed unanimously. Councilmember Gentle moved to grant the request of Eastern Shore Chamber of Commerce, requesting permission to block streets for their annual Arts and Crafts Festival on March 14, 15, and 16, 2003. Seconded by Councilmember Ford, motion passed unanimously. Councilmember Quinn moved to grant the request of Country Day School, requesting permission to use the Fairhoper's Community Park to hold a benefit dinner for the Holcombe Family on Tuesday, May 14, 2002, from 5:00 p.m. until 7:00 p.m. Seconded by Councilmember Gentle, motion passed unanimously. Councilmember Quinn so moved to grant the request of the March of Dimes, requesting permission to use the Fairhope Walking Trail for their annual WalkAmerica Campaign on Saturday, October 5, 2002, at 8:00 a.m. Seconded by Councilmember Ford, motion passed unanimously. Councilmember Gentle moved to grant the request of Fairhope Power Squadron, requesting permission to present a Safe Boating display in downtown Fairhope at the walk through between Colonial Bank and the Harbor Shop on Fairhope Avenue on May 21-22, 2002, from 10:00 a.m. to 2:00 p.m. Seconded by Councilmember Quinn, motion passed unanimously. Councilmember Christenberry moved to grant the request of the City of Fairhope, requesting permission to close Church Street between Fairhope Avenue and Magnolia Avenue beginning May 23, 2002, through July, 2002, on Thursday evenings from 4:00 p.m. to 8:00 p.m. Seconded by Councilmember Gentle, motion passed unanimously. ✓IiI 13 May 2002 Councilmember Christenberry moved to repeal the motion of 8 April 2002 to partner Merchant Capital and The Frazer Lanier Company with Merchant Capital being leader as the City of Fairhope Investment Banker. Seconded by Councilmember Ford, motion passed by the following votes: AYE -Gentle, Ford, Kant, and Christenberry. NAY -Quinn, and Anders Councilmember Anders submitted a letter from Merchant Capital that will explain the $53,551.00 savings. Councilmember Anders expressed that she saw no reason to change the motion. (A copy of the letter from Merchant Capital is attached at the end of the minutes) After discussion, Councilmember Christenberry moved to authorize The Frazer Lanier Company to lead in providing the City of Fairhope Investment Banker Services, and Merchant Capital serve as Co -Investment Banker. Seconded by Councilmember Gentle. The motion passed by the following vote: AYE -Gentle, Ford, Kant, and Christenberry. NAY -Quinn and Anders. Councilmember Ford moved to Up -date the Police Reserve Roster by adding: Dan McCrory and Chris Oos and by deleting: Ronnie Marshall and Jeremy Anderson. Seconded by Councilmember Gentle, motion passed unanimously. Councilmember Ford moved to reappoint Lonnie Pardue and Rusty Winfree to the Industrial Board for a 6-year term. Seconded by Councilmember Christenberry, motion tied and not pass by the following votes: AYE -Ford, Kant, Christenberry. NAY -Gentle, Quinn, and Anders. Councilmember Anders expressed that she would like for the City Council to wait two weeks before voting on the reappointment to the Industrial Board. Councilmember Anders also expressed that she formerly requested a report from the Industrial Board, and she would like to know what they are doing. Bill Payne, Chairperson of the Industrial Board, addressed the City Council and expressed that he would be glad to attend the City Council Work Session to explain what the Industrial Board is doing. However, all the members may not be able to attend the Work Session. Mayor Kant stated that the City Council will vote on the Industrial Board appointment at the next regular City Council meeting. Councilmember Gentle moved to reschedule the next regular City Council meeting from Monday, May 27, 2002 to Tuesday, May 28, 2002, due to the Memorial Holiday. Seconded by Councilmember Christenberry, motion passed unanimously. 13 May 2002 Identification: "POLY DUCT CONDUIT" Bids received: April 18, 2002 at: 4:00 p.m. 2889 Size of Poly Duct Conduit bid was from 1"— 4". All High Density Polyethylene Duct conduit will be purchased as needed. Vendor will stock supply needed by the City of Fairhope. The City will accept the ALTERNATE BID, which is the conduit that is supplied with string, and lube for pulling cable/wire throueh conduit. VENDOR: PRICE: DELIVERY.• 1" - 0.16 per ft. 1-1/4" - 0.243 per ft. 2" 0.37 per ft. GRESCO/CAPSTONE UTILITIES, Dothan, AL 3" 0.799 per ft. 4" 1.36 per ft. 2 — 3 Weeks MANUFACTURER: Amorio/ast, Inc. 1" - 0.190 per ft. 1-1/4" - 0.258 per ft. 2" 0.393 per ft. HUGHES SUPPLY, Pensacola, FL 3" 0.840 per ft. 4" 1.392 per ft. Stock - 2 Weeks MANUFACTURER: PNA/Petroflex I" - 0.2385 per ft. 1-1/4" - 0.3003 per ft. 2" 0.4975 per ft. UTILITY POWER, INC., Fairhope, AL 3" 1.0300 per ft. 4" 1.6970 per ft. I - 2 Weeks MANUFACTURER: Amco Corp. 1" - 0.2000 per ft. 1-1/4" - 0.2700 per ft. 2" 0.4200 per ft. MAYER ELECTRIC 3" 0.8900 per ft. Dothan, AL 4" 1.4000 per ft. 10 - 15 Working Days MANUFACTURER: Petroflex PNA GRAYBAR ELECTRIC, Mobile, AL NO BID It is advised to accept the low bid of GRESCO/CAPSTONE UTILITIES, Dothan, AL with all specifications being met. Aaron Norris, Richard Hice, Electrical Dept. Supt. Finance Director Wayne Smith, Purchasing Agent Councilmember Gentle moved to accept the low bid of Gresco/Capstone Utilities, Dothan, Alabama for Poly Duct Conduit, provided all specifications are met. Seconded by Councilmember Christenberry, motion passed unanimously. 2890 13 May 2002 Identification: "BORING FLUID SYSTEM" Bids received: May 2, 2002 at: 4:00 p.m. A boring fluid system, used with the directional boring machine. Borina Fluid Gel Annual Bid Purchased on an as need bases VENDOR: PRICE: DELIVERY. VERMEER SALES & SERVICE, Pensacola, Florida $8.99 per bag In Stock DITCH WITCH OF MOBILE, Mobile, Alabama $9.50 per bag 10-Days BAROID DRILLING FLUIDS, INC., Venice, Louisiana NO RESPONSE It is recommended to accept the bid of VERMEER SALES & SERVICE, Pensacola, Florida with all specifications being met. Aaron Norris, Richard Hice, Electrical Superintendent Finance Director Wayne Smith, Purchasing Agent Councilmember Gentle moved to accept the low bid of Vermeer Sales & Service, Pensacola, Florida, for Boring Fluid Gel, provided all specifications are met. Seconded by Councilmember Christenberry, motion passed unanimously. Identification: PRIMARY/SECONDARY WIRE & CONDUCTOR Bids received by: April 30, 2002 at: 4:00 p.m. The City of Fairhope Annual Bid for Primary/Secondary Wire and Conductor. Bid price is to be good for one (1) year. PRIMARY I/0AWG 115KV UNDERGROUND CABLE VENDOR: PRICE: DELIVERY: GRAYBAR ELECTRIC CO., Mobile, AL $1.52 ft. 8-Weeks MATHES OF ALABAMA, Daphne, AL NO BID MAGNOLIA ELECTRIC SUPPLY, Fairhope, AL NO RESPONSE UTILITY POWER, INC., Fairhope, AL SIA4 ft. 3-2 Days MAYER ELECTRIC SUPPLY CO., Dothan, AL SPECIFICATIONS NOT MET5,000 - 20,000 ft. minimum 15-30 Days STEWART C. IRBY CO., Pensacola, FL NO RESPONSE HUGHES SUPPLY, INC., Pensacola, FL $1.108 ft. In Stock CAPSTONE/GRESCO UTILITY, Dothan, AL $1.39 ft. 6-8 Weeks It is advised to accept the low bid of HUGHES SUPPLY, INC., Pensacola, FL, with specifications being met. Aaron Norris, Richard Hice, Wayne Smith, Electrical Dept. Supt. Finance Director Purchasing Agent Councilmember Ford moved to accept the low bid of Hughes Supply, Inc., Pensacola, Florida, for Primary 10/AWG 115 KV Underground Cable, provided all specifications are met. Seconded by Councilmember Christenberry, motion passed unanimously. 2891 13 May 2002 PRIMARY 4/0AWG ISKV UNDERGROUND CABLE VENDOR: PRICE: DELIVERY. GRAYBAR ELECTRIC CO., Mobile, AL $2.49 ft. 8-Weeks MATHES OF ALABAMA, Daphne, AL NO BID MAGNOLIA ELECTRIC SUPPLY, Fairhope, AL NO RESPONSE UTILITY POWER, INC., Fairhope, AL SPECIFICATIONS NOT MET (5,000-20,000ft. minimum) 2-3 Days MAYER ELECTRIC SUPPLY CO., Dothan, AL $1.77 ft. 15-30 Working Days STEWART C. IRBY CO., Pensacola, FL NO RESPONSE HUGHES SUPPLY, INC., Pensacola, FL $1.67 ft. In Stock CAPSTONE/GRESCO UTILITY, Dothan, AL $1.90 ft. 8-10 Weeks It is advised to accept the low bid of HUGHES SUPPLY, INC., Pensacola, FL with specifications being met. Aaron Norris, Richard Hice, Electrical Dept. Supt. Finance Director Wayne Smith, Purchasing Agent Councilmember Ford moved to accept the low bid of Hughes Supply, Inc., Pensacola, Florida, for Primary 4/OAWG 15 KV Underground Cable, provided all specifications are met. Seconded by Councilmember Gentle, motion passed unanimously. 11C #6 SOLID SOFT DRAWN BARE COPPER VENDOR: PRICE: DELIVERY: GRAYBAR ELECTRIC CO., Mobile, AL SPECIFICATIONS NOT MET 8-Weeks MATHES OF ALABAMA, Daphne, AL NO BID MAGNOLIA ELECTRIC SUPPLY, Fairhope, AL NO RESPONSE UTILITY POWER, INC., Fairhope, AL $1.35 lb. 2-3 Days MAYER ELECTRIC SUPPLY CO., Dothan, AL SPECIFICATIONS NOT MET (5,0001b. Minimum) 15-30 Working Days STEWART C. IRBY CO., Pensacola, FL NO RESPONSE HUGHES SUPPLY, INC., Pensacola, FL $1.19 lb. In Stock CAPSTONE/GRESCO UTILITY, Dothan, AL $1.20 lb. In Stock It is advised to accept the low bid of HUGHES SUPPLY, INC., Pensacola, FL, with specifications being met. Aaron Norris, Electrical Dept. Supt. Richard Hice, Finance Director Wayne Smith, Purchasing Agent 2892 13 May 2002 Councilmember Christenberry so moved to accept the low bid of Hughes Supply, Inc., Pensacola, Florida, for 1/C #6 Solid Soft Drawn Bare Copper, provided all specifications are met. Seconded by Councilmember Gentle, motion passed unanimously. I/C #4 SOLID HARD DRAWN BARE COPPER VENDOR: PRICE: DELIVERY. GRAYBAR ELECTRIC CO., Mobile, AL SPECIFICATIONS NOT MET 8-Weeks MATHES OF ALABAMA, Daphne, AL NO BID MAGNOLIA ELECTRIC SUPPLY, Fairhope, AL NO BID UTILITY POWER, INC., Fairhope, AL $1.35 lb. 2-3 Days MAYER ELECTRIC SUPPLY CO., Dothan, AL SPECIFICATIONS NOT MET (5,0001b. Minimum) 15-30 Working Days STEWART C. IRBY CO., Pensacola, FL NO RESPONSE HUGHES SUPPLY, INC., Pensacola, FL $1.20 lb. In Stock CAPSTONE/GRESCO UTILITY, Dothan, AL $1.23 lb. In Stock It is advised to accept the low bid of HUGHES SUPPLY, INC., Pensacola, FL, with specifications being met. Aaron Norris, Electrical Dept. Supt. Richard Hice, Finance Director Wayne Smith, Purchasing Agent Councilmember Ford moved to accept the low bid of Hughes Supply, Inc., Pensacola, Florida, for 1/C # 4 Solid Hard Drawn Bare Copper, provided all specifications are met. Seconded by Councilmember Gentle, motion passed unanimously. 2893 13 May 2002 1/C #4 SOLID SOFT DRAWN TRANSFORMER RISER WIRE VENDOR: PRICE: DELIVERY: GRAYBAR ELECTRIC CO., Mobile, AL $0.321 ft. 8-Weeks MATHES OF ALABAMA, Daphne, AL NO BID MAGNOLIA ELECTRIC SUPPLY, Fairhope, AL NO RESPONSE UTILITY POWER, INC., Fairhope, AL $0.298 ft. 2-3 Days MAYER ELECTRIC SUPPLY CO., Dothan, AL $0.35 ft. 2,500 - 5, 000ft. minimum 15-30 Working Days STEWART C. IRBY CO., Pensacola, FL NO RESPONSE HUGHES SUPPLY, INC., Pensacola, FL $0.26 ft. In Stock CAPSTONE/GRESCO UTILITY, Dothan, AL $0.22 ft. 2-4 Weeks It is advised to accept the low bid of CAPSTONE/GRESCO UTILITY, Dothan, AL with all specifications being met. Aaron Norris, Richard Hice, Wayne Smith, Electrical Dept. Supt. Finance Director Purchasing Agent Councilmember Gentle moved to accept the low bid of Capstone/Gresco Utility, Dothan, Alabama, for 1/C # 4 Solid Soft Drawn Transformer Riser Wire, provided all specifications are met. Seconded by Councilmember Ford, motion passed unanimously. Mayor Kant announced that the City of Fairhope was designated to receive an All American City's Finalist Award. The National Civic League sponsors this contest. Councilmember Ford moved to pay bills as presented. Seconded by Councilmember Anders, motion passed unanimously. There being no further business to come before the City Council the meeting Omar - 13. 2UU2 12:320 No-5918 P. 6 13 May 2002 MEMORANDUM DATE: April 1, 2002 TO: Mayor and City Council CITY OF FAIRHOPE FROM: Kenneth C. Funderburk MERCHANT CAPITAL, LLC W-0 As each of you consider the upcoming bond issue I thought it might be helpful to illustrate the two alternatives I believe are under consideration. One is a traditional bond issue and the other is an idea Merchant Capital has proposed which I will call the Community Bond Program ("CBP"). Below is a side -by -side issuance cost comparison of the two alternatives which should help you evaluate price differentials. Additionally, an attached sheet illustrates the debt service schedule for the two alternatives. It clearly illustrates that total payments over the life of the transaction. Payments under the CBP total almost $40,000 less than a traditional bond issue. While the CBP is the best choice from a cost perspective, I believe a significant difference is one which cannot be reduced to a quantitative amount. It would be almost impossible to evaluate the real impact of offering some portion of the financing to local banks. It represents a substantial departure from business as usual and sends a clear message to the community that consideration is being given to local business. This has both a substantial monetary impact and a positive political impact. Even if some banks decline the offer to participate the benefit of being made the gesture is still realized. Cost estimates used in the following comparison are conservative and based upon similar issues statewide. The underwriting fee quote matches historical fees paid on previous Fairhope transactions. Bond issue size is estimated at $8.0 million. 0 hl�a�•13• LUU'1 12�U1NM 13 May 2002 Underwriting Legal Trustee Traditional Bond ILM $4.00 per bond (or $32, 000) Cusip, DTC, Printing & Engraving Bond Insurance Total Issuance Costs Total Debt Service $15,000 3,000 2,050 59.749 $ 111,799 $ 13,277,600 No•5918 P- 1 mmun Bond Pr_ 9gram $4,00 per bond on public sale $2.00 per bond on local placement (or $28,000) $15,000 3,000 1,850 49,568 $ 97,418 $13,238,430 2895 Cost Mrendal $ 14,381 39170 TOTAL* COST DIFFERENTIAL......................................................................................................... $$ S3�.S51 The Community Bond Program cost is $53,551 less than: the Traditional Municipal Bond Program As you can see, the Community Bond program will cost less. Further, the portion of the transaction which is potentially held by banks (approximately $2 million) will not have restrictions on early redemption or termination of debt and will also provide flexibility to renegotiate terms if necessary, One key component to remember is that there would be no interest rate differential between a traditional bond issue and the CBP. This ensures the best possible transaction for the taxpayer. I hope this memo further clarifies the matter and that a decision on which firm and method to utilize is forthcoming soon. Naturally, I am very hopeful that Merchant Capital is retained and that I may then approach the banks officially on behalf of the City to discuss details of the transaction. Preliminary discussions have already shown they are pleased to be included. Please let me know if there are questions. -2- h�a 13. 2002 12:32PM No. 5918 P- 8 .._.✓ OFFICIAL STATEMENT NEW ISSUE -BOOK-ENTRY ONLY Ratings": Moody's; Aaa 13 May 2002 2896 + See "Explanation of Ratings Under existing law. Interest on the Series i998vt Bonds is presently subject to federal income and other taxation under the Internal Revenue Code of 1986, as amended. In the opinion of bond Counsel, under existing law, interest on the Serles 1998-A Bonds is exempt from present State of Alabama income taxatlon. OPELIKA INDUSTRIAL DEVELOPMENT AUTHORITY S 7,710,000 TAXABLE VARIABLE/FIXED RATE INDUSTRIAL. DEVELOPMENT REVENUE BONDS (OPELIKA INDUSTRIAL PARK PROJECT) SERIES 1998-A Dated: June 1, 1998 Due: June 1, as set forth on inside front cover The Series 1998-A Bonds will be issued pursuant to Mortgage and Trust Indenture dated as of June 1, 1998 (the "Indent u>r") by Opelika Industrial Development Authority (the "Iull ') to AmSouth Bank, Birmingham, Alabama, as trustee (the "Trustee"). The Series 1998-A Bonds are limited obligations of the Issuer payable solely from and secured, on an equal and proportionate basis and parity of lien with the Series 1998-B Bonds (as herein defined), by a pledge of (1) the net revenues derived by the Issuer from the sale from time to time of that certain real estate to be acquired and developed by the Issuer from the proceeds of the Series 1998-A Bonds and the Series 1998-B Bonds as an industrial park (the "EL94 t") and (2) any revenues appropriated or made available to the Issuer for payment of the Series 1998-A Bonds. The Series 1999-A Bonds shall never constitute or give rise to an indebtedness or pecuniary liability payable from, or a charge against, the revenues, assets, credit, or taxing powers of the State of Alabama or any political subdivision thereof (except as specifically undertaken by the City of Opelika, Alabama) within the meaning of any constitutional provision or statutory limitation whatsoever. The Series 1998-A Bonds are secured, on an equal and proportionate basis and parity of lien with the Series 1998-B Bonds (as herein defined), by (1) the obligation of the City of Opelika, Alabama (the "City") pursuant to that certain Annual Appropriation Agreement dated as of June 1, 1998 among the City, the Issuer and the Trustee, to appropriate funds in each fiscal year of the City for the payment of the principal of and interest on the Series 1998-A Bonds in such fiscal year in an amount necessary to pay such principal of and interest on the Series 1998-A Bonds in such fiscal year and certain expenses related thereto, which obligation shall be a year-to-year obligation of the City and may be terminated unilaterally, without penalty, by the City at the end of any fiscal year of the City after satisfaction by the City of its obligations under such Agreement for such fiscal year, (2) the irrevocable obligation of the City pursuant to that certain Reserve Agreement dated as of June 1, 1998 among the City, the Issuer and the Trustee, to provide not more than $1,700,000 for payment of the principal of and interest on the Series 1998-A Bonds and the Series 1998-B Bonds, (3) a foreclosable mortgage on the Project, and (4) a debt service reserve fltnd to be held by the Trustee in a maximum amount equal to the maximum amount of principal and interest due and payable on the Series 1998-A Bonds and the Series 1998-B Bonds in any fiscal year. The Series 1998-A Bonds are subject to redemption, mandatory tender and purchase, and optional tender and purchase, all as described herein. Payment of the principal of and interest an the Series 1998-A Bonds when due will be insured by a financial guaranty insurance policy to be issued by MBIA Insurance Corporation simultaneously with the delivery of the Series 1998-A Bonds, See "The MBIA Insurance Corporation Insurance Policy." /NL30 Payment of the purchase price of Bonds tendered for purchase pursuant to the optional and mandatory tender provisions of the Series 1998-A Bonds will be secured by a Credit Facility provided by AmSouth Bank, Birmingham, Alabama, which will permit the Trustee to draw thereunder for payment thereof. The purchase price of any Series 1998-A Bonds due upon tender will be paid by wire transfer of immediately available funds first with remarketing proceeds and thereafter, if necessary, with funds provided by AmSouth Bank. The Credit Facility will terminate on June 5, 2003 (except upon the occurrence of earlier events) and the Series 1998-A Bonds are subject to mandatory tender on the first day of the calendar month in which occurs the expiration date of the Credit Facility, unless a substitute credit facility meeting the requirements of the Indenture therefor is delivered to the Trustee prior to said date. The Series 1998-A Bonds will initially bear interest at the several Fixed Rates (as defined herein) set forth on the inside front cover for an initial Fixed Rate Period (as defined herein) beginning on the date of issuance of the Series 1998-A Bonds and continuing until and including June 1, 2003, whereupon the Series 1998-A Bonds will bear interest at the Variable Rate (as defined herein) unless and until the Issuer elects to convert the interest rate on the Series 1998-A Bonds to a Fixed Rate for a Fixed Rate Period then designated by the Issuer. During the initial Fixed Rate Period interest on the Series 1998-A Bonds will be calculated on the basis of a 360-day year of 12 months of 30 days each and will be payable on the first day of each June and December, The Series 1998-A Bonds are initially issuable as fully registered bonds without coupons in denominations of S5,000 and any integral multiple thereof pursuant to a book -entry only system to be administered by The Depository Trust Company, New York, New York, or any successor or assign thereof or substitute therefor as such securities depository (the "Securities Depository") and, when issued, will be registered in the name of and held by Cede & Co., as nominee. During the period in which the book -entry only system is in effect for the Series 1998-A Bonds, purchases and transfers of ownership of beneficial interests in the Series 1998-A Bonds will be evidenced by book -entry only and all payments of principal of, purchase price of, premium (if any) and interest on the Series 1998-A Bonds will be made by AmSouth Bank, Birmingham, Alabama, as trustee, to the Securities Depository for disbursement thereby to the Direct Participants and for subsequent disbursement by the Direct Participants (and, where appropriate, by the Indirect Participants) to the owners of beneficial interests in the Series 1998-A Bonds, as more particularly provided in the Indenture: and described herein. The Serles IP98-A Bonds are offered when. as and iflssuedd subject to prior sale, withdrawal or modification of the offer without notice, the approval of legally by Walston, Wells, Anderson & Barns, LLP, Birmingham, Alabama. Bond Counsel, and certain other conditions. Delivery of the Scrlcs 1998-A Bonds is expected to be made on or about June 2J, 1998 In New York New York against payment therefor. This cover page contains certain information for quick reference only. It is no a summary of this issue, Investars must read the entire Official Statement to obtain information essential to in informed investment decision. MERCHANT CAPITAL The date of this Official Statement is June 17, 1998.