HomeMy WebLinkAbout08-01-1946 Special Meeting1-1INUIES OF r.L SPECIAL 1DIETING OF
THE T O-,10 COUNCIL OF TIFF TOM M OF
FAIRHOPE , AIZA BAIWL , HELD ON THE
A9'-D,iY OF ttUGUST, 1946
A special meeting of the Town Council of the
Town of Fairhope, Alabama, was held at the town hall in
said town on the /s�day of August, 1946, at A/ -,'bp o'clock,
—F . M. , pursuant to the following notice and call:
NOTICE AND CALL OF
SPECIAL IvLET-Ui G
TO THE iY�KIBERS OF THE TOVTN
C OUi C IL OF THE TO'.v'N OF FAIRH OPE , ALABAiAa :
In my opinion the public busiro s requires
that a special meeting of the Town Council of
the Town of Fairhope, Alabama, be held, and I do,
therefore, hereby call and give you notice of
such meeting to be held at the town hall in
said town on the /J7day of August, 1946, at
o'clock, I M. , for the purpose
of considering the advisability of authorizing
the giving of notice of the sale of Gas System
Revenue Anticipation Bonds of the town and, if
such action should be deemed advisable, to
authorize the giving of such notice.
Dated this b`"`day of .August, 1946.
L
Mayor
CONSENT TO KEETING
The undersigned, constituting all of the
members of the Town Council of the Town of
Fairhope, Alabama, do hereby accept service of
the foregoing notice and call of the special
meeting of said town council therein referred to
and do hereby consent to the holding of said meeting
at the time and placb and for the purpose therein
provided.
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The meeting was called to order by the mayor
and upon roll call the following were found to be present:
Mayor Howard Ruge, and the following members of the town
council: Messrs: C. %. Gaston, J. 11. Bennett, H. P. Camper,
J. 0. Stimpson and W. 0. Keeble; and the following members
of the town council were found to be absent
. The mayor presided at the meeting
and announced that a quorum was present and that the meeting
was open for the transaction of business. R. C. Yohn, the
Town Clerk, was also present at the meeting and acted as clerk
thereof. The mayor announced that the foregoing notice and
call of this meeting had been served upon each member of the
town council prior t6 the holding of the meeting and that each
member of the town council had signed the foregoing acceptance
of such notice and consent to the holding of this meeting,
which documents were then ordered spread upon the minutes of
this meeting.
Councilman u- r.�_ introduced the following
resolution which was read to the meeting:
BE IT RESOLVED by the Town Council of the Town of
Fairhope, Alabama, as follows:
(1) ,Subject to the grant of consent by the Depart-
ment of Finance of the State of Alabama to the sale and issuance
thereof, August 21, 1946, beginning at 7: 30 o'clock, P.M., is
hereby set as the date and hour for sale at public auction
of 4345,000 principal amount of Gas System Revenue Anticipation
Bonds,of the Town of Fairhope to be dated ;august: 1, 1946, and to
be numbered from 1 to 345, inclusive.
(2) The mayor of the town is hereby authorized
and directed to advertise said bonds for sale once a weep for two
consecutive weeks in The Fairhope Courier, a newspaper published
and having general circulation in the town, the first of the
said publications to be not less than ten days before the date
set for such sale, and also to file a copy of such notice with
the Department of Finance of the State of d abama, which notice
shall be substantially as follows :
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NOTICE OF BOND SALE
The Town of Fairhope in the State of Alabama will
offer for sale at public auction, at the town hall in
said town, beginning at 7: 30 o'clock, P.IVI. , on the
21st day of August, 1946, $345,000 principal amount
of, Gas System Revenue Anticipation Bonds of said town
to be dated August 1, 1946, consisting of three hundred
f ortybfive coupon bonds in the denomination of 21,000
each, bearing interest at such rate as may be determined
at said sale, vfaich interest shall be payable semi-
annually on February 1 and August 1, and maturing in
annual installments on August 1 in the following aggre-
gate principal amounts and in the following years ( all
years inclusive) : `5,000 in 1949; r6,000 in 1950;
97,000 in 1951; �8,000 in 1952; 49,000 in 1953; %0,000
in 1954 to 1958; "'12,000 in 1959 to 1961; 414,000 in
1962; and $15,000 in 1963 to 1976.
. Those of the bonds maturing in 1952 and thereafter
shall be subject to redemption, at the option of the
town, after not less than thirty days' prior published
notice, as a whole or in part in the inverse order of
their numbers, on any interest payment date on or after
August 1, 1951, at par plus accrued interest and a
premium equal to twelve months' interest computed
at the rate the bonds so redeemed would bear on,the
redemption date if such option of redemption were
not exercised; provided, that any redemption made
prior to August 1, 1956, may be effected solely out of
surplus revenues derived from the operation of the
gas distribution system presently being constructed
by the town, but any such redemption made on or
after ,august 1, 1956, shall not be so limited. Said
bonds constitute a part of an authorized issue in
the aggregate principal amount of 4P'355,000 and shall
be payable solely out of revenues to be derived from
the operation of the said system.
The bidders are invited to specify in their bids
the rate of interest which the bonds shall bear, which
shall not exceed 312% per annum. All interest shall be
payable semi-annually on February 1 and August 1. No
interest rate will be considered other than in multiples
of 1/4 of 1 fo per annum. The , bonds will be sold to that
bidder whose bid reflects the lowest net interest cost
to the town; provided, that the torn reserves the right
to reject any or all bids. A..11 bids must include
accrued interest to the date of delivery of the bonds.
No bids will be permitted for less than all of the
bonds iso proposed to be sold or for less than 1032 of
par plus accrued interest.
Each bidder must deposit with the town clerk
before bidding a certified check for $6,900 payable
to the order of the town as evidence of good faith,
which deposit will be forfeited by the successful
bidder as liquidated damages in the event of failure
to comply with the terms of his bid. The deposits
of the unsuccessful bidders will be returned to them
following the sale. No interest will be allowed on
any such deposits.
The bonds will be delivered to the successful
bidder at Birmingham, Montgomery or Mobile, as may
be designated by the successful bidder, against pay-
ment therefor in bankable funds, as soon after the
sale as the bonds may be printed. The town will fur-
nish to the purchaser, without. cost, the opinion of
Messrs. white, Bradley, Arant & Ail approving the
validity of the bonds. No conditional bids will
be considered except that such bids may be made
contingent upon such opinion. In the event that
prior to the delivery of the bonds the income de-
rived by private investors in bonds of the same
character should become taxable under the terms
of any Federal income tax law, the successful
bidder may at his election be relieved of his
obligation of purchase, whereupon the deposit made
by him will be returned.
TOWN OF FAIRHOPE
By Howard Ruge
�,1ayor
Councilman_moved that the rules be suspended
and unanimous consent be given for immediate consideration of
and action on said resolution which motion tiaras seconded by
Councilman , and upon the motion being put to
vote the following vote was recorded: _eyes: Mayor Ruge
and Councilmen Gaston, Bennett, Camper, Stimpson, and Keeble;
Nays: None. The mayor thereupon declared that the motion for
unanimous consent for immediate consideration of and action
on said resolution had been unanimously carried. Councilman
�'_�!�� _ _ thereupon moved that the said resolution be
finally adopted, t,,hich motion was seconded by Councilman
2LQ lrC C , and upon said motion being gout to vote
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the following vote was recorded: kyes: Mayor Ruge and
Councilmen Gaston, Bennett, Camper, Stimpson and Keeble;
Nays: None. The mayor thereupon announced that the motion
for adoption of said resolution had been unanimously carried.
There being no further business to come before the
meeting the same was on motion duly adjourned.
r--
Mayor
Town 1 �e�rk