HomeMy WebLinkAbout01-03-1950 Special MeetingMINUTES OF A SPECIAL MEETING OF
THE CITY COUNCIL OF THE CITY OF
FAIRH�, ALABAMA, MELD ON THE
3 _ DAY OF JANUARY, 1950
A special meeting of the City Council of the
City of Fairhope, Alabama, was held at the city hall in
said city on the day of January, 19502 at 2 o 0
otclock, / . M., pursuant to the following notice and
call: 3
NOTICE AND CALL OF SPECIAL MEETING
TO THE MEMBERS OF THE CITY COUNCIL
OF THE CITY OF FAIRHOPE, ALABAMA:
•In my opinion the public business requires
that'a special meeting of the City Council 'of
the City of Fairhope, Alabama, be held, and I
do, therefore, hereby call and give you notice
of such meeting to be held+a`t the city hall in
said city on the 3 - day of January, 1950, at
?!`ovo t clock, . M., for the purpose of con-
sidering the advisability of authorizing the
giving of notice of the sale of First Mortgage Gas
Revenue Bonds of the city and, if such action
should be deemed advisable, to authorize the
giving of such notice.
Dated this 3-'�' day of January, 1950.
CONSENT TO MEETING
The undersigned, constituting all of the
members of the City Council of the City of
Fairhope, Alabama, do hereby accept service
of the foregoing notice and call of the special
meeting of said city council therein referred
to and do hereby consent to the holding of said
meeting at the time and place and for the
purpose therein provided
Members of the City
Council
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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 T. J. Klumpp, and the following members of the city
council: Messrs. Marvin 0. Berglin, J. T. Bradford, R.
H. Brown, Edward B. Overton and Ira N. Steele; and the
following members of the city council were found to be
absents 1l/o 6Z E . The mayor presided at
the meeting and announced that a quorum was present and
that the meeting was open for the transaction of business.
Marie Moore, the city 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 city council prior to
the holding of the meeting and that each member of the
city 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
00. this meeting t
Councilman 1` introduced the follow-
ing resolution which was read to the meeting:
BE IT RESOLVED by the City Council of the City
of Fairhope, Alabama, as follows:
(1) Subject to the grant of consent by the De-
partment of Finance of the State of Alabama to the sale and
issuance thereof, January 25, 1950, beginning at 2:00
otclock, P.M., is hereby set as the date and hour for sale
at public auction of $755,000 principal amount of First
Mortgage Gas'Revenue Bonds of the City of Fairhope to be
dated February 1, 1950, which are additionally referred to
in the notice of sale hereinafter set out.
(2) The mayor of the city is hereby authorized
and directed to advertise said bonds for sale once a week
for two consecutive weeks in The Fairhope Courier, a news-
paper published and having general circulation in the city,
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 Alabama, not less than fourteen days prior
to the date of such sale, which notice shall be substan-
tially as follows:
-3-
NOTICE OF BOND SALE
Subject to prior consent to such sale being
granted by the Department of Finance of the State of
Alabama, the City of Fairhope"in the State of Alabama
will offer for sale at public auction, at the city
hall in said city, beginning at 2:00 o'clock, P. M.,
on the 25th day of January, 1950, $?55,000 principal
amount of First Mortgage Gas Revenue Bonds of said
city to be dated February 1, 1950, consisting of seven
hundred fifty-five coupon bonds in the denomination
of $1,000 each, bearing interest at such rate or rates
as may be.determined at said sale, which interest shall
be payable semi-annually on February 1 and August 1,
and maturing in annual installments on February 1 in
the following aggregate principal amounts and in the
following ears (all years inclusive): $14,000 in 1953
and 1954; 416,000 in 1955 and 1956; $18,000 in 1957 and
1958; $20,000 in 1959 and 1960; $22,000 in 1961 and 1962;
124,000 in 1963 and 1964; 260000 in 1965 and 1966;
2$;000 in 1967 and 1968; 30,000 in 1969 and 1970;
32,000 in 1971 and 1972; 34,000 in 1973 and 1974;
36,000 in 1975 and 1976; 138,000 in 1977 and 1978;
39,000 in 1979; and $40,000 in 1980.
Those of the bonds maturing in 1960 and there-
after may at the option of the city be called for re-
demption as a whole or in part in the inverse order of
their numbers, after not less than thirty days' prior
published notice, on any interest payment date on and
after February 19 1955, at the face value thereof plus
accrued interest to the redemption date and a premium
equal to twelve months' interest computed at the rate
the bonds so called would bear on the redemption date if
such option of redemption were not exercised; provided,
that any such redemption made prior to February 1, 1960,
may be effected solely out of either surplus revenues
derived from the operation of the gas distribution system
presently to be constructed by the city after all special
funds have been accumulated to the maximum amounts re-
quired to be paid therein and are in current condition,
or out of the proceeds received by the city from the sale
of that portion of the said gas distribution system which
may be purchased by the Town of Daphne in the event it
should exercise an option to purchase the same. The bonds
will be secured by a first mortgage and deed of trust
covering the said gas distribution system, under which
The Merchants National Bank of Mobile will be the trustee.
The bonds will be sold to that bidder whose
bid reflects the lowest net interest cost to the city;
provided, that the city reserves the right to reject any
or all bids. The bidders are invited to specify the
rate or rates of interest which the bonds shall bear,
but no rate shall exceed 4% per annum, payable semi-
annually. No interest rate will be considered other
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than in multiples of 1//+ of if per annum. All bids must
include accrued interest to the date of delivery of the
bonds. No bid will be considered for less than all of
the bonds proposed to be sold and the bids and the inter-
est ratesto be borne by the bonds must be so computed
that the amount to be paid by the successful bidder shall
be not less than the face amount of the bonds plus ac-
crued interest to the date of delivery.
Each bidder must deposit with the city clerk
before bidding a certified check for 2% of the face
amount of the bonds, payable to the order of the city
as evidence of good faith and as a guaranty for the per-
formance of the successful bid. The deposits of the
unsuccessful biddels will be returned to them following
the sale. No interest will be allowed on any such
deposit.
The bonds will be delivered against payment
therefor in bankable funds as soon after their date
as they may be printed. The city will furnish to the
purchaser, without cost, the opinion of Messrs. White,
Bradley, Ara.nt & All approving the validity of the bonds.
No conditional bids will be considered except that bids
may be contingent upon such opinion.
CI`l'Y OF FAIRHOPE
By
ATTEST: Rayor
1. 12 '6L r
0 � -
City Clerk
Councilman -Moved that the rules be suspended
and unanimous consent be given for immediate consideration
of and action on said resolution which motion was seconded
by CouncilmanL , and upon the motion being put
to vote the following vote was recorded: Yeas: Mayor
Klumpp and Councilmen Berglin, Bradford, Brown, Overton,
and Steele; Nays: None. The mayor thereupon declared that
the motion for unanimous consent for immediate consideration
of and action on said resolution had been unanimously car-
ried. Councilman thereupon moved that the
said resolution be finally adopted, which motion was
seconded by Councilman�*A&ox'—, and upon said
motion being put to vote the following vote was recorded:
- 5 -
Yeas: Mayor Klumpp and Councilmen Berglin, Bradford,
Brown, Overton, and Steele; Nays: None. The mayor
thereupon announced that the motion for adoption of
said resolution had been unanimously carried.
Councilman introduced the fol-
lowing resolution which was read to the meeting:
BE IT RESOLVED by the City Council of the
City of Fairhope, Alabama, that the mayor of said city
is hereby authorized and directed to file in behalf
of said city with the State Department of Finance of the
State of Alabama such petition and other documents as
he may deem necessary to secure the consent of said De-
partment to the sale and issuance by said city of
1755,000 principal amount of First Mortgage Gas Revenue
onds of said city to be dated February 1, 1950, which
it is contemplated will be issued by said city for the
purpose of financing the construction and equipment by
said city of a gas distribution system, including the
transmission mains and appurtenances and equipment in
connection therewith.
Councilman_M moved that the foregoing reso-
lution be adopted, which motion was seconded by Council-
man , and upon the same being put to vote,
the following voted in favor of said motion: Mayor
Klumpp and Councilmen Berglin, Bradford, Brown, Overton,
and Steele; and the following voted against the adoption
thereof: None. The mayor thereupon announced that the
motion for adoption of said resolution had been unani-
mously carried.
There being no further business to come before
the meeting the same was on motion duly adjourned.
AM
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