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HomeMy WebLinkAbout05-09-2005 Regular Meeting3544 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, 9 May 2005. Present were Council President Robert C. Gentle, Councilmembers: Debbie W. Quinn, Daniel Stankoski, Cecil Christenberry, and Michael A. Ford; Mayor Timothy M. Kant, City Attorney Marion E. Wynne, and City Clerk/Treasurer Geniece W. Johnson. No one was absent. There being a quorum present, Council President Gentle called the meeting to order. The Pledge of Allegiance was recited, and Summer Woodson, Planning and Building Assistant, gave the invocation. Councilmember Quinn moved to approve minutes of the 25 April 2005, regular meeting. Seconded by Councilmember Stankoski, motion passed unanimously by voice vote. Mayor's Comments and Staff Reports: • Mayor Kant apologized for having to miss the last City Council Meeting. At this meeting Geniece W. Johnson and Tyron Hoskins were presented a proclamation proclaiming the Week of May 2-7, 2005 as City Clerk Week. Mayor Kant thanked Geniece and Tyron for all their hard work. • Mayor Kant announced that Christopher Baker is preparing an ordinance to address billboards. State Representative Joe Faust informed the Mayor that if the City adopted an ordinance not allowing billboards within the Police Jurisdiction the County would honor this ordinance. • Mayor Kant asked the City Council to put on their thinking caps to come up with more ways to generate more revenue sources. A Finance Committee meeting will be held at 3:00 p.m. on Thursday, May 19`h to go over the finances for the 6-month review. • Mayor Kant encouraged the City Council to participate and support the appropriation of $3,000 to Mobile Bay National Estuary Program. Councilmember Quinn introduced in writing, and moved for the adoption of the following resolution, a resolution authorizing an appropriation of $3,000.00 to Mobile Bay National Estuary Program for the next 3 years. Seconded by Councilmember Christenberry, motion passed unanimously by voice vote. RESOLUTION NO. 1106-05 WHEREAS, the recent rainstorm simply highlighted the urgency associated with addressing such issues as comprehensive land use planning, storm water management and smart growth practices, and; WHEREAS, the Mobile Bay National Estuary Program (MBNEP) exists to help bay communities develop the tools necessary to strike a balance between growth and development and the wise use and protection of our water, land and living resources, and; 3545 WHEREAS, the MBNEP are committed to promoting the use of sound, science - based information and initiating programs and projects that benefit our citizens and the environment. 9 May 2005 WHEREAS, A good start on implementing our community -developed Comprehensive Conservation and Management Plan, but the MBNEP need your help to continue this progress. BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF FAIRHOPE, ALABAMA, THAT Mayor Timothy M. Kant, is hereby authorized to sign a contract between the City of Fairhope and the Mobile Bay National Estuary Program to invest an annual appropriation of $3,000.00 over each of the next three years to support the works of Mobile Bay National Estuary Program. . DULY ADOPTED THIS 91h DAY OF May , 2005. Attest Geniece W. Johnson, Ci Treasurer Councilmember Quinn introduced in writing, and moved for the adoption of the following resolution, a resolution authorizing the issuance of $2-Million Line -of Credit for Hurricane Ivan expenses. Seconded by Councilmember Christenberry, motion passed unanimously by voice vote. 3546 9 May 2005 RESOLUTION NO. 1107-05 A RESOLUTION AUTHORIZING THE ISSUANCE, EXECUTION, SALE AND DELIVERY OF $2,000,000 PRINCIPAL AMOUNT GENERAL OBLIGATION WARRANT OF THE CITY OF FAIRHOPE AND THE PAYMENT THEREOF BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAIRHOPE, ALABAMA (the "Municipality") as follows: Section 1. Findings and Representations. The Municipality, by and through its governing body, does hereby find, determine, represent and warrant as follows: (a) It is necessary and desirable and in the public interest for the Municipality to provide for the payment of unanticipated capital improvements to the public facilities of the Municipality or for the orderly payment of current liabilities and expenses of the Municipality when and as the same become due and payable, in the Municipality and for such purposes to issue its General Obligation Warrant, Series 2005, in principal amount of $2,000,000, as authorized and described herein (the "Warrant"). (b) The assessed valuation of the taxable property in the Municipality for the preceding fiscal year (ending September 30, 2004 and on the basis of which taxes became due and payable on October 1, 2004) is not less than $164,798,960, and the total indebtedness of the Municipality chargeable against the debt limitation for the Municipality prescribed by the Constitution of Alabama of 1901, as amended, is not more than twenty percent of said assessed valuation. (c) The population of the Municipality is 12,480 according to the 2000 United States Census. Section 2. Authorization, Description, Payment and Form of Warrant. (a) The Municipality shall borrow the amount of $2,000,000 in such amounts and at such times as shall be necessary for the purposes set forth in Section 1 hereof, and the Municipality shall issue therefor its General Obligation Warrant, Series 2005, in the following principal amount and of the following number, to the following financial institution to evidence a line of credit extended by such institution to the Municipality for such purposes: Warrant No. Principal Amount Institution R-1 $2,000,000 Wachovia Bank, National Association 3547 9 May 2005 (b) The Warrant shall be dated the date of issuance; shall bear interest at the per annum rate or rates; shall be payable in installments of principal and interest in such amounts, at such times and in such manner; shall be subject to redemption prior to maturity; and shall be registered and transferred; all as provided in the form of the Warrant in Section 4. (c) The principal of and interest on the Warrant shall be payable in lawful money of the United States of America, at the principal office of the registered owner thereof, in Birmingham, Alabama, at par and without discount, exchange or deduction or charge therefor. The Municipality hereby covenants and agrees to pay all bank charges for the Warrant. (d) The indebtedness evidenced and ordered paid by the Warrant shall be a general obligation of the Municipality for the punctual payment of the principal of and interest on which the full faith, credit and taxing power of the Municipality are hereby irrevocably pledged. (e) There is hereby established a special fund designated the Series 2005 Warrant Fund (the "Warrant Fund") which shall be held by the bank named as paying agent for the Warrant. The Municipality shall pay or cause to be paid into the Warrant Fund from time to time such sums as shall be sufficient to assure the payment of the principal of and interest on the Warrant as it matures and comes due. (f) The Warrant shall be in substantially the following form: 3548 9 May 2005 UNITED STATES OF AMERICA STATE OF ALABAMA CITY OF FAIRHOPE GENERAL OBLIGATION WARRANT SERIES 2005 No. R-1 Dated: May_, 2005 The CITY OF FAIRHOPE, a municipal corporation organized and existing under and by virtue of the laws of the State of Alabama (the "Municipality"), for value received, hereby acknowledges itself indebted to, and does hereby order and direct the Treasurer of the Municipality to pay, solely from the Warrant Fund hereinafter referenced, to WACHOVIA BANK, NATIONAL ASSOCIATION (the "Warrantholder") or registered assigns the principal amount of TWO MILLION DOLLARS ($2,000,000) or so much thereof as many be advanced hereunder, as hereinafter provided, and to pay, solely from the said Warrant Fund, interest on the unpaid balance of said principal amount advanced and outstanding hereunder from time to time, from the date advanced until payment in full, at a per annum rate of interest (computed on the basis of the actual number of days elapsed over a 360-day year) equal to the Adjusted LIBOR Rate (as hereinafter defined), as adjusted from time to time as hereinafter provided; such principal of and interest on this warrant being payable in installments as follows: (a) on the first day of July, 2005 and continuing on the first day of each January, April, July and October thereafter, until and including January 1, 2007, the interest accrued on the outstanding principal balance of this warrant to each such date of payment; and (b) on May 1, 2007, the entire outstanding principal balance of this warrant plus interest accrued to such date of payment; provided, anything herein to the contrary notwithstanding, if the Warrantholder determines (which determination, if made on a reasonable basis, shall be conclusive) that quotations of rates for the relevant types of United States dollar deposits referenced in the definition of LIBOR Rate are not being provided in the relative amounts for the relative maturities for purposes of determining the rate of interest at the LIBOR Rate, or in the event it becomes unlawful or impossible for the Warrantholder to make, maintain or fund the LIBOR Rate, the Warrantholder shall give notice thereof to the Municipality and the principal amount of this Warrant shall thereupon bear interest at a per annum rate of interest equal to (a) the effective rate of interest on this warrant on the date of delivery of such notice, for the period beginning on such date of delivery of such notice and ending on the last day of the month next succeeding the month in which such notice is delivered; and 3549 9 May 2005 (b) the Wachovia Base Rate, as said rate is adjusted from time to time as hereafter provided, for the period beginning on the first day of the second succeeding month after the month in which such notice is delivered and ending on the date of payment in full of this warrant; provided, further, that if the interest on this warrant is determined by the Warrantholder, supported by an opinion of counsel, or by the Internal Revenue Service, to be includable in gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code") or if it is determined by the Internal Revenue Service that this warrant is not a "qualified tax-exempt obligation" within the meaning of Section 265(b) of the Code, then (1) this warrant shall bear interest at the Wachovia Base Rate (as hereinafter defined), as said rate is adjusted from time to time as hereafter provided, from (a) the date such interest must be included in such gross income, or (b) the date the Warrantholder is required to take 100% (rather than 20%) of the interest hereon into account in complying with the said Section 265(b), whichever is the earlier and (2) the Municipality will reimburse the Warrantholder for all costs, expenses, penalties, attorneys' fees and all other losses incurred by the Warrantholder as a result of such determination and (3) the Warrantholder shall then determine the amount necessary to be paid in equal monthly installments of principal and interest to fully amortize the principal amount of this warrant then outstanding over the then remaining term of this warrant. If either such determination is made, the difference between (i) the interest then due computed at the higher rate, and (ii) the interest already paid at the lower rate, shall be paid, along with all such costs, expenses, penalties, attorneys' fees and all other said losses within thirty days after the date a written notice is mailed by the Warrantholder hereof to the Municipality stating that such a determination has been made and stating the amount that is then due. The obligation to pay such additional interest and such other costs, expenses, penalties, attorneys' fees, and other losses shall survive the payment of the principal hereof. In the event such determination is made and the Wachovia Base Rate becomes the effective rate of interest on this warrant, the applicable rate of interest on this warrant shall be adjusted simultaneously with each change in the Wachovia Base Rate thereafter publicly designated by Wachovia (as hereinafter defined) without notice to the Municipality and without any further action by the Warrantholder. Adjusted LIBOR Rate shall be a variable per annum rate of interest equal to that rate of interest determined to be equal to .60% in excess of sixty-eight percent (68%) of the LIBOR Rate. LIBOR Rate means the rate of interest with respect to any interest period during which interest is accruing at such rate, the rate per annum equal to the quotient of (i) the indicated offered rate (rounded upwards to the nearest whole multiple of 1/100 of 1%) at 10:00 A.M. (Birmingham, Alabama time) (or as soon thereafter as practicable) in the London interbank market for deposits in U.S. dollars as published in the Wall Street Journal or such other comparable financial information reporting service used by the Warrantholder the time such rate is determined, in an amount comparable to the then current outstanding principal balance on which interest is accruing at the LIBOR Rate and for a period of 30 days divided by (ii) a number equal to 1.00 minus the LIBOR Reserve Requirement, the rate so determined to be rounded upwards to the nearest whole multiple of 1/100 of 1%. 3550 9 May 2005 LIBOR Reserve Requirement shall mean the percentage (expressed as a decimal) prescribed by the Board of Governors of the Federal Reserve System (or any successor), on the date on which the LIBOR Rate is determined, for determining the reserve requirements of the Warrantholder with respect to liabilities relating to time deposits purchased in the London interbank market having a maturity equal to the period during which the LIBOR Rate will be in effect and in an amount equal to the outstanding principal balance on which interest is accruing, without any benefit or credit for any proration, exemptions or offsets under any now or hereafter applicable regulations. Wachovia Base Rate shall mean the rate of interest announced from time to time by Wachovia (as hereinafter defined) as its base interest rate, with the understanding that Wachovia's base interest rate is one of its base rates established from time to time for lending purposes after taking into account such factors as Wachovia may in its sole discretion from time to time deem appropriate and is not necessarily the best or lowest rate offered by Wachovia. Wachovia shall mean Wachovia Bank, National Association, a national banking association, and its successors and assigns. The applicable rate of interest on each advance of principal under this Warrant shall be calculated on the date of such advance of principal and shall be adjusted (subject to the limitations set forth above) simultaneously with each change in the LIBOR Rate or the Wachovia Base Rate, without notice to the Municipality and without any further action by the Warrantholder, effective on the opening of business on the date of any such change, unless such change is announced after the close of regular banking hours, in which case such change shall be effective on the following day. The Municipality may, on any date, pay in advance the entire unpaid principal balance of this warrant or any lessor portion or portions thereof by paying to the Warrantholder the principal amount to be prepaid, plus interest accrued on such principal amount to the date of such prepayment, without premium or penalty. This warrant is a master warrant under a line of credit extended by the Warrantholder to the Municipality. The proceeds of the loan evidenced hereby will be advanced by the Warrantholder to the Municipality in installments as requested by the Municipality (as to amount and date). By reason of prepayments hereon there may be times when no indebtedness is owing hereunder; notwithstanding any such occurrence, this warrant shall remain valid and shall be in full force and effect as to each principal advance made hereunder subsequent to each such occurrence. Each principal advance and each payment made on this warrant shall be reflected by the notations made by the Warrantholder on its internal records (which may be kept by computer or by other means determined by the Warrantholder) and the Warrantholder is hereby authorized so to record thereon all such principal advances and payments. The unpaid principal amount of this warrant reflected on the internal records of the Warrantholder (whether by computer or otherwise) shall be rebuttably presumptive evidence of the principal amount of this warrant outstanding and unpaid. No failure of the Warrantholder so to record any advance or payment shall limit or otherwise affect the obligation of the Municipality hereunder with respect to any advance, and no payment of the principal by the Municipality shall be affected by the failure of the Warrantholder so to record the same. 3551 9 May 2005 Payment of the principal hereof and interest hereon shall be made at the principal office of the Warrantholder in the City of Fairhope, Alabama, or at such other place as shall be designated to the Municipality in writing by the Warrantholder, provided the final payment of principal of and interest on this warrant shall be made only upon presentation and surrender of this warrant to the Municipality for cancellation. This warrant is issued pursuant to the Constitution and laws of the state of Alabama, including without limitation the provisions of Section 11-47-2 of the CODE OF ALABAMA 1975, and a resolution and proceedings of the governing body of the Municipality duly passed, held and conducted (the "Authorizing Proceedings"). The indebtedness evidenced by this warrant is a general obligation of the Municipality, and the full faith and credit of the Municipality are hereby sacredly and irrevocably pledged to the punctual payment of the principal hereof and interest hereon. The Municipality has established in the Authorizing Proceedings a special fund designated "Series 2005 Warrant Fund" (the "Warrant Fund") for the payment of the principal of, premium, if any, and interest on this Warrant and has obligated itself to pay or cause to be paid into the Warrant Fund sums sufficient to provide for the payment of the principal of and interest on this Warrant as the same shall become due and payable. This warrant is recorded and registered as to principal and interest in the name of the owner on the book of registration maintained for that purpose by the Municipality. The person in whose name this warrant is registered shall be deemed and regarded as the absolute owner hereof for all purposes and payment of the principal of and interest on this warrant shall be made only to or upon the order of the registered owner hereof or his legal representative, and neither the Municipality nor any agent of the Municipality shall be affected by any notice to the contrary. Payment of principal of and interest on this warrant shall be valid and effectual to satisfy and discharge the liability of the Municipality upon this warrant to the extent of the amounts so paid. This warrant may be transferred only upon written request of the registered owner or his legal representative addressed to the Municipality, such transfer to be recorded on said book of registration and endorsed hereon by the Municipality. Upon presentation to the Municipality for transfer, this warrant must be accompanied by a written instrument or instruments of transfer satisfactory to the Municipality, duly executed by the registered owner or his attorney duly authorized in writing, and the Municipality shall endorse on the schedule attached hereto for such purpose the principal amount of this warrant unpaid and the interest accrued hereon to the date of transfer. No charge shall be made for the privilege of transfer, but the registered owner of this warrant requesting any such transfer shall pay any tax or other governmental charge required to be paid with respect thereto. No covenant or agreement contained in this Warrant or in the Authorizing Proceedings shall be deemed to be a covenant or agreement of any officer, agent, employee, or member of the governing body of the Municipality in its individual capacity and none of such parties or persons nor any officer executing this Warrant shall be liable personally on this Warrant or be subject to any personal liability or accountability by reason of the issuance of this Warrant. 3552 9 May 2005 It is hereby recited, certified and declared that the indebtedness evidenced and ordered paid by this warrant is lawfully due without condition, abatement or offset of any description, that this warrant has been registered in the manner provided by law, 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 Authorizing Proceedings, have happened, do exist and have been performed as so required, and that the principal amount of this warrant and all other indebtedness of the Municipality are within every debt and other limit prescribed by the Constitution and laws of the state of Alabama. IN WITNESS WHEREOF, the Municipality, acting by and through its governing body, has caused this warrant to be executed in its name and on its behalf by its Mayor and its corporate seal to be hereunto affixed and attested by its City Clerk, and has caused this warrant to be dated the date and year first above written. CITY OF FAIRHOPE, ALABAMA kA_ Ti thy M, tant, bhayor SEAL Attest: Geniece W. Johnson, Ci WTreasurer City Council reviewed an application for a Restaurant Liquor License by F. Rutherford Smith Jr., dba Point Clear Tennis & Swim Club. Inc, located at 6832 Marlow Road, Fairhope, Alabama. Councilmember Ford moved to approve the issuance of the license. Seconded by Councilmember Christenberry, motion passed unanimously by voice vote. Councilmember Ford moved to grant the request of the Baldwin County Home Builders Association, requesting permission to put up directional signs for their annual Parade of Homes scheduled for June 1 Ith, and 12th, 18th and 19th, 2005. The BCHBA are required to pick up the signs at the end of each weekend tour. Seconded by Councilmember Christenberry, motion passed unanimously by voice vote. Councilmember Christenberry so moved to reschedule the next regular City Council Meeting from Monday, May 23rd to Thursday, May 19th, due to Alabama League of Municipalities Conference. Seconded by Councilmember Quinn, motion passed unanimously by voice vote. 3553 9 May 2005 Councilmember Ford moved to pay bills as presented. Seconded by Councilmember Christenberry, motion passed unanimously by voice vote. Councilmember Christenberry moved to address an item not on the printed agenda. Seconded by Councilmember Quinn, motion passed unanimously by voice vote. Identification: "ORANGE PIER REPAIRS" Bids to be received by: April 29. 2005 at: 10:00 a.m. Repairs to Orange Street Pier/Ivan . Revenues for repairs to come from FEMA. VENDOR: PRICE: CONSTRUCTION TIME: DOUG WARD & CO. Fairhope, AL $48,300.00 14-days BEASLEY & CO. Brewton, AL $77,375.00 Time not stated HUGHEY CONSTRUCTION/ KENDRIC MARINE $91,556.00 30-Days Orange Beach, AL Tommy Long, General Superintendent Wayne Smith, Purchasing Agent been met. Councilmember Quinn moved to accept the low bid of Doug Ward & Co, Fairhope, Alabama, for the repairs of Orange Street Pier, provided all specifications are met. The Orange Street Pier was damaged by Hurricane Ivan on September 16, 2004. Seconded by Councilmember Stankoski, motion passed unanimously by voice vote. There being no further business to was duly adjourned at 5:56 p.m. C�Geniece W. Johnson, CPrk/Treasurer fire the City Council the meeting C. Gentle, Council President