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HomeMy WebLinkAboutO-631_I% ORDINANCE NO. 631 AN ORDINANCE AUTHORIZING THE ISSUANCE OF AND SELLING $4009000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, OF THE CITY OF FAIRHOPE, ALABAMA, TO BE DATED DECEMBER 1, 1978 BE IT ORDAINED by the Mayor and City Council (herein called the "Council") of the City of Fairhope (herein called "the City"), Alabama, as follows: Section 1. Findings. The Council has ascer- tained and determined and hereby finds and declares that the following facts are true and correct: (a) At a duly convened meeting of the Council held on May 9, 1977, the Council adopted Ordinance No. 588 of the City entitled "AN ORDINANCE TO PROVIDE FOR CERTAIN IMPROVE- MENTS ON: LAUREL STREET, CHURCH STREET, CHESTNUT STREET, THIRD AVENUE, FIG STREET, WISTERIA STREET, SCHOOL STREET LINCOLN STREET, WOOD GROVE CIRCLE, ORCHARD DRIVE, SPRING RUN, EAST GATE DRIVE, AUTUMN DRIVE, RONFORTH DRIVE, AND KURLANE STREET"; the said Ordinance No. 588 was published in Eastern Shore Courier, a news- paper published and having general circulation in the City in the issues of said newspaper published on May 9, 1977, and on May 12, 1977; a copy of the said Ordinance No. 588 was for- warded by the City Clerk on or before May 13, 1977, by United States certified mail, postage prepaid, to each of the persons assessing for City taxation the property that might be af- fected by the improvements provided for in the said Ordinance No. 588, at the last known ad- dress of each such person; (b) Full details, drawings, plans, spe- cifications, surveys and cost estimates of the improvements provided for in the said Ordi- nance No. 588, all of which had been prepared by Moore Engineering Co., consulting engineers for the City, were on file in the office of the City Clerk of the City on May 9, 1977, and re- mained continuously on file in the said office, ` where they were available for examination by property owners and other interested persons, until and including May 23, 1977; (c) At a duly convened meeting of the Council held on May 23, 1977, at the time and IL place fixed in the said Ordinance No. 588 for hearing objections, remonstrances, or protests that might be made with respect to the improve- ments provided for in the said Ordinance No. 588, the Council heard all such objections, remonstrances and protests; following full e consideration by the Council of all the said objections, remonstrances and protests, the Council did confirm Ordinance No. 588 of the City and did provide for the construction of certain street improvements in the City and for assessment of the costs thereof against the properties specially benefitted thereby (the improvements provided for in the said Ordi- nance No. 588 being herein called "the Improve- ments"); (d) The Improvements, which consist of street improvements (including street paving, curbs and gutters, driveway turnouts, and storm water sewers for street drainage) and sanitary sewer lines, laterals and pump sta- tions have a total estimated cost of $425,000; (e) On May 9, 1977, the Council adopted Ordinance No. 587 of the City entitled "AN ORDINANCE TO ESTABLISH THE GRADE OF A CERTAIN PORTION OF LAUREL STREET, CHURCH STREET, CHESTNUT STREET, THIRD AVENUE, FIG STREET, WISTERIA STREET, SCHOOL STREET, LINCOLN STREET, WOOD GROVE CIRCLE, ORCHARD DRIVE, SPRING RUN, EAST GATE DRIVE, AUTUMN DRIVE, RONFORTH DRIVE, AND KURLANE STREET", which es- tablished the grades of all streets, avenues and other public ways and portions thereof in or along which any portion of the Improvements are to be constructed in accordance with the provisions of the said Ordinance No. 588; and the said Ordinance No. 587 was published in said Eastern Shore Courier in the issue thereof published on May 9, 197 ; (f) Pursuant to publication of a notice to contractors advertising for sealed bids for construction of the Improvements, which was published as required by law in said Eastern Shore Courier on September 5, 8, 12, 15 and 19, 1977, the City did on September 26, 1977, re- ceive from contractors sealed bids for con- struction of the Improvements, and on the said date the Council adopted a resolution of the City wherein the City awarded to Valta Con- struction Company and Fairhope Paring Company, Inc., contracts for construction of the Improvements; (g) The City has heretofore borrowed the sum of $400,000 for payment of a portion of the costs of the Improvements, and the indebted- ness resulting from the said borrowing is now evidenced by the City's General Obligation Public Improvement Note, in the principal amount of $400,000, which is dated October 10, 1977, became due on October 10, 1978, and bears interest from its date at the rate of 5-3/4% per annum (herein called "the Note"); the Note was issued pursuant to authorization in a reso- lution of the City adopted October 10, 1977, and in anticipation of the issuance of the Bonds; in the said resolution, the City re- served the privilege of paying the Note prior to its maturity by paying to the holder thereof the principal thereof and the interest accrued thereon to the date of such payment; and the Note constitutes the only outstanding note, bond or other security of the City issued by it for payment of, or in evidence of any indebted- ness incurred with respect to, any part of the Improvements; (h) All the Improvements are provided to be constructed within the corporate limits of the City; (i) The Board has determined that it is necessary, desirable and advantageous to the City and its inhabitants that the City sell and issue the bonds hereinafter authorized for the purpose of paying costs incurred and to be in- curred by the City in constructing the Improve- ments (including payment of the principal of the Note); (j) The construction of the Improvements has been substantially completed but the as- sessments referred to in said Ordinance No. 588 have not yet been made against the properties specially benefitted by the Improvements; and (k) A Notice of Bond Sale with respect to the bonds herein authorized was published in said Eastern Shore Courier in the issues there- of dated and published on December 21, 1978, and on December 28, 1978; the City also caused an Official Invitation for Bids for the said bonds to be circulated and distributed to those securities dealers and banks to which notices of sales of securities by municipalities in this state are customarily forwarded; the said Notice of Bond Sale that was so published and the said Official Invitation for Bids that.was so circulated were each in substantially the form provided therefor respectively in that certain resolution of the City adopted December 26, 1978; at the time and place fixed, in the said Notice of Bond Sale and in the said Official Invitation for Bids, for the opening of sealed bids for purchase of the bonds herein authorized, viz., on Tuesday, January 9, 1979, at 11:30 o'clock, A. M., in the City Hall in the City, and at a duly convened meeting of the Council, sealed bids for purchase from the City of the bonds herein authorized were publicly opened; of the bids so opened, the bid that re- flected the lowest total net interest cost to the City was that of Joe Jolly and Company, Inc. which reflected a total net interest cost to the City of $127,500 and an effective aver- age annual net interest rate of 5.7954 %, which specified a dollar price of $400,000 , and which specified also the in- terest rates hereinafter provided for. Section 2. Authorization of the Bonds. Pur- suant to the applicable provisions of the Constitution and laws of the State of Alabama, including particularly Sections 11-81-110 through 11-81-123 of the Code of Ala- bama of 1975, there are hereby authorized to be sold and issued by the City $400,000 aggregate principal amount of General Obligation Public Improvement Bonds (herein called "the Bonds") of the City for the purpose of pro- viding funds to pay costs of constructing the Improve- ments, including payment of the principal of the Note. The Bonds shall be dated December 1, 1979, shall consist of eighty (80) coupon bonds in the denomination of $5,000 each, shall be numbered consecutively from 1 to 80, in- clusive, and shall mature on December 1 as follows: Bond Numbers Year of Aggregate Principal (both inclusive) Maturity Amount Maturing 1 to 8 1979 $40,000 9 to 16 1980 409000 17 to 24 1981 409000 25 to 32 1982 40,000 33 to 40 1983 40,000 41 to 48 1984 40,000 49 to 56 1985 409000 57 to 64 1986 409000 65 to 72 1987 40,000 73 to 80 1988 40,000 The Bonds shall bear interest from their date until their respective maturities at the following per annum rates: 1979 6.00Po 1984 5.75% 1980 6.00Q/o 1985 19 81 6.00% 1986 �7T°I 1982 6.00% 19 8 7 77r°lo 1983 5. 55a/. 1988 777 Such interest shall be payable on June 1, 1979, and thereafter semiannually on each June 1 and December 1 (herein called an "Interest Payment Date") until and at the respective maturities of the Bonds. Such interest prior to and at maturity shall be evidenced by coupons (herein called "the Coupons") attached to the Bonds. Both the Bonds and the Coupons shall bear interest at the rate of 8% per annum after their respective maturities until paid. The Bonds and the Coupons shall be payable in lawful money of the United States of America at the principal office of The Merchants National Bank of Mobile in the City of Mobile, Alabama or at the principal office of First National Bank of Baldwin County, in the City of Fairhope, Alabama. Section 3. Optional Redemption Provisions. Those of the Bonds having stated maturities in 1984 and thereafter (herein called "the Callable Bonds") shall be M subject to redemption and payment by the City at its op- tion on December 1, 1983, and on any Interest Payment Date thereafter, following prior published notice given in the manner hereinafter provided, at the face value of each Bond redeemed plus the following redemption premium, expressed in percentages of the face value of each Bond redeemed, and applicable on the following respective dates fixed for such redemption (herein called "Redemp- tion Date"): If the Redemption Date is in 1983, 3% If the Redemption Date is in 1984, 2%; and If the Redemption Date is in 1985 or thereafter, 1%. Any such redemption may be made as a whole or in part of the Callable Bonds that are at the time outstanding (and if in part shall be accomplished in the inverse numerical order of those of the Callable Bonds at the time out- standing). Any such redemption shall be effected in the following manner: (a) The City shall by resolution call for redemption, on a stated date when they are by their terms subject to redemption, Callable Bonds bearing stated numbers and shall find and declare in the said resolution either (1) that the City is not at the time in default in the payment of the principal of or interest on any of the Bonds or (2) that each of the Bonds then outstanding is to be retired on or prior to the Redemption Date; (b) The City shall cause to be published one time in a newspaper published in the City of Birmingham, Alabama, a notice stating the following: that Callable Bonds bearing stated numbers (which shall be the numbers specified in the resolution required in subsection (a) of this section) have been called for redemption and will become due and payable on a specified Redemption Date (which shall be the date pro- vided for such redemption in the resolution re- quired in the said subsection (a)) and at the Redemption Price applicable on the Redemption Date to each Bond so called for redemption (which redemption price shall be specified in the said notice) and that all interest thereon will cease after the Redemption Date, such notice to be so published at least one time not less than thirty days prior to the Redemption Date; and (c) On or prior to the Redemption Date, the City will make available at the bank or banks at which the bonds are payable the total redemption price of each Bond so called for re- demption (herein referred to as a "Called Bond"), and shall furnish to each of the said banks a certified copy of the resolution re- quired in subsection (a) of this section and an appropriate affidavit showing compliance with the requirements of subsection (b) of this sec- tion. 9W Upon compliance with the foregoing requirements, the Called Bonds shall become due and payable on the Redemp- tion Date at the place at which the same shall be payable and at the redemption price specified in such notice, anything in the Bonds or in this ordinance to the con- trary notwithstanding, and interest shall thereafter cease to accrue on the Called Bonds. Neither the bank at which the Called Bonds shall be payable nor the City shall be required to pay any Coupon maturing on the Redemption Date which is applicable to any Called Bond unless the Called Bond to which such Coupon is applicable is also presented for payment; provided, that in the event the said bank should pay any such coupon without payment of the applicable Called Bond, it shall not be liable to the Holder of such applicable Called Bond or to the City or to anyone whomsoever; and provided, further, that such bank shall pay such Coupon out of the moneys supplied to it for such purpose by the City if the Holder thereof shall present evidence satisfactory to such bank that such Holder is the owner of the Coupon so presented and is not the owner of the Called Bond to which such Coupon is applicable. Section 4. Execution of the Bonds. The Bonds shall be signed in behalf of the City by the Mayor and the City Clerk; and the corporate seal of the City shall be reproduced on each of the Bonds in facsimile. The signature of the said Mayor on each of the Bonds shall be manually subscribed thereon; and the signature of the City Clerk on each of the Bonds shall be a facsimile thereof. The said signature of the City Clerk reproduced in facsimile on each of the Bonds shall constitute attes- tation of each of the Bonds and of the said seal. The Coupons shall bear the facsimile signatures of the said Mayor and City Clerk, which facsimile signatures shall be valid in all respects as if the said officers had signed the Coupons in person. Section 5. General Obligation and Special Pledge. The Bonds shall be general obligations of the City and for the payment of the principal thereof and in- terest thereon the full faith and credit of the City are hereby irrevocably pledged. As additional security for the payment of the principal thereof and interest thereon the full faith and credit of the City are hereby irrevo- cably oledaed. As additional security for the payment of the principal of and inter further hereby irrevocably may hereafter be made aga' benefited by the Improvemen from all such assessments, the sale or redemption of which may be sold by the Ci of such assessments. All 1 after have on the properti Improvements arising from ments are hereby transferre of the holders of the Bonds enforce the same either at est on the Bonds, there are pledged all assessments that nst the properties specially :s, together with the proceeds including the proceeds from any of the said properties ty in enforcement of the lien iens which the City may here- �s specially benefited by the ;he levy of the said assess- ; and assigned for the benefit and the coupons with power to law or in equity. Section 6. Completion of the Improvements and Collection of Assessments. The City agrees that it will complete the construction of the Improvements as promptly as may be feasible hereafter. The City further agrees (i) that, subject to and within the limitations contained in the Constitution of Alabama on the amount of assess- ments that may lawfully be made, the City will take all proceedings that may be necessary and appropriate to cause valid assessments to be made against the properties specially benefited by the Improvements and (ii) that the City will make such assessments to the fullest extent provided in Ordinance No. 588, subject, however, to the constitutional limitation that no assessment against any property shall exceed the increased value to that proper- ty resulting from the said improvement. The City agrees that it will undertake to col- lect all such assessments that may be made and, in cases where the owner of any property subject to any such as- sessment shall elect to pay such assessment in install- ments in the manner authorized by the laws of Alabama, the City agrees to collect any such installments promptly as and when such installments become due and payable. In the event that any such assessment or any installment thereof shall remain unpaid for as long as one year after the same shall become due and payable, the City thereupon will take all steps necessary to enforce the lien of such assessment by sale of the property against which such as- sessment was made. All proceeds hereafter collected from each assessment that may be made pursuant to the said Or- dinance No. 588, including the proceeds of the sale or redemption of any property that may be sold by the City in enforcement of the lien of said assessments, shall be deposited by the City from time to time as collected in a special fund separate and apart from all other funds of the City and that shall be designated the "1978 Assess- ment Proceeds Fund." The said special fund shall consti- tute a trust fund for the benefit of the holders of the Bonds and the Coupons and shall be used solely for the payment thereof. Section 7. Payment at Par. Each banking in- stitution at which any of the Bonds shall at any time be payable, by acceptance of its duties as a paying agent therefor, shall be construed to have agreed thereby with the holders of the Bonds and the Coupons that, out of the moneys supplied to it for that purpose, it will make all payments of the Bonds and the Coupons in bankable funds at par and without deduction for exchange, fees or ex- penses. The City agrees with the holders of the Bonds and the Coupons and with each such banking institution that it will pay all charges for exchange, fees or ex- penses which may be made by any such paying agent in the making of such payment at par in bankable funds. Section 8. This Ordinance a Contract. The provisions of this ordinance shall constitute a contract between the City and each holder of the Bonds and the Coupons. Section 9. Severability. The various provi- sions of this ordinance are hereby declared to be sever- able. In the event any provision hereof shall be held invalid by a court of competent jurisdiction such inva- lidity shall not affect any other portion of this ordi- nance. Section 10. Form of Bonds and Coupons. The Bonds and the Coupons applicable thereto shall be in sub- stantially the following forms with appropriate changes therein to conform with the provisions hereof: 0 No. (Form of Bond) $5,000 UNITED STATES OF AMERICA STATE OF ALABAMA CITY OF FAIRHOPE GENERAL OBLIGATION PUBLIC IMPROVEMENT BOND On the 1st day of December, 19 , for value re- ceived, the City of Fairhope (herein called "the city"), a municipal corporation in the State of Alabama, promises to pay to the bearer hereof the sum of F I V E T H O U S A N D D O L L A R S with interest thereon at the rate of % per annum, pay- able June 1, 1979, and thereafter semiannually on each June 1 and December 1 until and at the maturity hereof upon surrender of the appropriate annexed coupons as the same respectively mature. Both the principal hereof and the interest hereon shall be payable in lawful money of the United States of America at the principal office of The Merchants National Bank of Mobile in the City of Mobile in the State of Alabama or, at the option of the holder, at the principal office of First National Bank of Baldwin County in the City of Fairhope in the State of Alabama. This bond is one of an authorized issue aggre- gating $400,000 in principal amount (herein called "the bonds"), which have been issued pursuant to the provi- sions of Sections 11-81-110 through 11-81-123 of the Code of Alabama of 1975, and proceedings of the city duly adopted, for the purpose of providing funds to pay a por- tion of the costs of constructing certain public improve- ments (including street paving, installation of curbs and gutters, storm water sewers, and sanitary sewers) autho- rized under the provisions of the city's Improvement Or- dinance No. 588. The indebtedness evidenced by this bond is a general obligation of the city for the payment of the principal of and interest on which the full faith and credit of the city have been irrevocably pledged. In and by the ordinance under which the bonds are authorized to be issued, the city has further pledged for the benefit of the holders of the bonds all assessments that may be hereafter made, against the properties specially bene- fited by the said public improvements, under the provi- sions of the said Improvement Ordinance No. 588, together Ej, with the proceeds of said assessments, including the pro- ceeds resulting from enforcement of the liens securing such assessments; and has assigned for the benefit of the holders of the bonds and the interest coupons applicable thereto all liens securing such assessments. Those of the bonds having stated maturities in 1984 and thereafter are subject to redemption at the op- tion of the city, as a whole or in part (and if in part, then in the inverse order of their numbers), on December 11 1983, and on any interest payment date thereafter at the face value of each bond redeemed plus the following premium expressed in percentages of such face value: If the redemption date is in 1983, 3% If the redemption date is in 1984, 2%; and If the redemption date is in 1985 or thereafter, 1%. Prior notice of any redemption prior to maturity must be given not less than thirty days before the date fixed for redemption by publication one time in a newspaper pub- lished in the City of Birmingham, Alabama. It is hereby certified and recited that all conditions, actions and things required by the constitu- tion or laws of Alabama to exist, be performed or happen precedent to or in the issuance of this bond and the cre- ation of the indebtedness evidenced hereby exist, have been performed and have happened and that the indebted- ness evidenced by this bond, together with all other in- debtedness of the city, was when incurred and is now within every debt and other limit prescribed by the con- stitution and laws of Alabama. IN WITNESS WHEREOF, the city has caused this bond to be executed in its behalf by the manually written signature of its Mayor and by a fascimile of the signa- ture of its city clerk, has caused the seal of the city to be reproduced hereon in facsimile, the said facsimile signature of the said city clerk hereon to constitute at- testation of this bond and of the said seal, has caused the annexed interest coupons to be executed with the fac- simile signatures of the said Mayor and city clerk, and has caused this bond to be dated December 1, 1978. CITY OF FAIRHOPE By Its Mayor By Its City Clerk c (Form of Coupon) Coupon No. On the 1st day of , 19 , the City of Fairhope in the State of Alabama will pay to the bear- er hereof at the principal office of The Merchants Na- tional Bank of Mobile in the City of Mobile, Alabama, or at the option of the holder at the principal office of First National Bank of Baldwin County in the City of Fairhope, Alabama, Dollars in lawful money of the United States of America, being six months' interest then due on its General Obligation Public Im- provement Bond, dated December 1, 1978, numbered 0 By CITY OF FAIRHOPE Its Mayor Its City Clerk There shall be inserted in each of the Callable Bonds, immediately following the maturity date thereof, the following: "(unless this bond shall have been duly called for prior payment)," There shall be inserted in each Coupon due on or after June 1, 1984, immediately following the maturity date thereof, the following: "(unless the bond to which this coupon is applicable shall have been duly called for prior payment)," 0 made by Section 11. Sale of Bonds. The aforesaid bid Joe Jolly and Company, Inc. for the purchase of the Bonds at a purchase price equal to $ 400,000 , plus accrued interest thereon to the date of delivery thereof, is hereby accepted by the City, and the Bonds are hereby sold and awarded to the said bidder. The City Treasurer is hereby authorized and directed to deliver the Bonds, together with all Coupons applicable thereto, to the said purchaser upon payment to the City of the said purchase price. Section 12. Use of Proceeds from the Bonds. The proceeds from the sale of the Bonds shall be applied as follows: (a) That part of the said proceeds that represents accrued interest on the Bonds from their date to the date of payment therefor and any premium on the -sale of the Bonds shall be set aside in a special separate account, and shall be applied for payment of the interest which will mature on the Bonds on June 1, 1979; and (b) The principal proceeds from the sale of the Bonds shall be applied for payment of the principal of the Note. Simultaneously with the issuance of the Bonds, the City Treasurer is authorized and directed to pay, out of other funds of the City available therefor, the interest accru- ed on the Note from its date to the date of such payment. The Note shall thereupon be cancelled and retired. ADOPTED this 9th day of January, 1979. Mayor Attest: City Clerk