HomeMy WebLinkAbout07-12-1950 Regular MeetingEXCERPTS FROM THE MINUTES OF
AN ADJOURNED REGULAR MEETING
OF THE CITY COUNCIL OF THE
CITY OF FAIRHOPE, ALABAMA,
HELD ON JULY 12, 1950
The City Council of the City of Fairhope met in
the city hall in said city on July 12, 1950, at 2:00
o'clock, P.M., pursuant to adjournment of the regular
meeting of said council held on July 10, 1950. On roll
call the following were found to be present: Mr. T. J.
Klumpp, the mayor, and the following members of the city
council: M. 0. Berglin, J. T. Bradford, R. H. Brown,
Edward B. Overton, and Ira N. Steele; absent:
The mayor acted as chairman
of the meeting and Miss•Marie.Moore, the City Clerk, who
was also present, acted as clerk of the meeting.
Councilman /tis-c.c�-H lintroduced the
following ordinance in writing, which was read to the
meeting:"
ORDINANCE NO. �Zd `6'
AN ORDINANCE TO AUTHORIZE THE ISSUANCE
BY THE CITY OF FAIRHOPE OF $81,000
PRINCIPAL AMOUNT OF GENERAL OBLIGATION
SEWER BONDS TO RAISE FUNDS FOR THE CON-
STRUCTION OF SEWERS IN THE CITY
BE IT ORDAINED by the City Council of the
City of Fairhope as follows:
Section 1. Definitions. The following words
and phrases shall have e o owing respective'meanings
herein:
"City" means the municipal corporation of
Fairhope in the State of Alabama, and any municipal cor-
poration resulting from any merger or consolidation
thereof with another municipal corporation.
"Council" means the governing body of the city
as from time to time constituted.
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"Bonds" means those issued hereunder.
"Coupons" means those issued in pursuance
hereof and evidencing the interest on the applicable
bond.
"Callable bonds" means those of the bonds
numbered from 7 to 81, inclusive.
"Newspaper" means a newspaper printed in
the English language not less often than six days
during each calendar week and having general circulation
in the locality specified.
"Financial journal" means a journal having
national circulation devoted primarily to news of
financial matters.
"Holder" when used in conjunction with bonds
or coupons means the person who is in possession and
the apparent owner of the designated item.
."Herein", "hereby", and "hereof", and other
equivalent words, refer to this ordinance and not
solely to any particular portion thereof in which any
such word is used.
Definitions include both singular and plural.
Pronouns include both singular and plural
and cover all genders.
Section 2. Authorization of bonds. Pursuant
to the applicable provisions of the constitution and
laws of the State of Alabama, including particularly
Chapter 6 of Title 37 of the Code of Alabama of 1940,
as amended, and pursuant to authority so to do granted
at an election of the qualified electors of the city
held in the city on May 9, 1950, there are hereby
authorized to be issued by the city its -General Obli-
gation Sewer Bonds to the extent of $810000 in princi-
pal amount for the purpose of constructing sewers in
the city.
Section 3. Description of bonds. The bonds
shall consist of eighty-one coupon bonds numbered
consecutively from 1 to 81, inclusive, shall be in
the denomination of $1,000 each, shall be dated July
19 1950, and shall mature as follows:
Bond Numbers Aggregate Principal
lboth inclusive) Maturity Dates Amount Maturing,
1
to
3
July
1,
1951
$3,000
4
to
6
July
11
1952
3,000
7
to
9
July
1,
1953
3,000
10
to
13
July
1,
1954
4,000
14
18
to
to
17
21
July
July
12
1,
1955
1956
4,000
4,000
22
26
to
25
July
1,
1957
49000
to
29
July
1,
1958
41000
-3-
30
to
33
July
1,
1959
$4,000
3�
to
37
July
1,
1960
4,000
3
to
41
July
1,
1961
4,000
42
to
45
July
119
1962
4,00,0
46
to
50
July
1,
1963
5�000
51
to
55
July
10
1964
5,000
56
to
60
July
1,
1965
5,000
61
to
65
July
1,
1966
5,000
66
to
70
July
19
1967
5,000
71
to
75
July
1,
1968
5;000
76
to
81
July
1,
1969
619000
The bonds shall bear interest from their date until
their respective maturities at such rate or rates,
not exceeding 3% per annum, as may be hereafter fixed
by ordinance of the city, and at the rate of 6% per
annum after their respective maturities. Such inter-
est prior to and at maturity shall be payable semi-
annually on January 1 and July 1 and shall be evidenced
by coupons attached to the bonds. 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 in the State of Alabama.
Section 4. Execution of bonds. The bonds
shall be signed in behalf of the city by its mayor
and by the city treasurer, and the corporate seal of
the city shall be affixed to each thereof. The coupons
shall bear the facsimile signatures of said mayor and
treasurer, which facsimile signatures shall be valid
in all respects as if the said officers had signed
the same in person.
Section 5. Redemption provisions. The
callable bonds may be called for redemption prior to
maturity, as a whole or in part, at the option of
the city, on any interest payment date on and after
July 1, 1952; provided, that if'less than all of
the callable bonds at the time outstanding are called
for redemption then the same shall be called in the
inverse order of their numbers. Any such redemption
shall be at the face value of the bonds redeemed plus
accrued interest to the redemption date and plus the
following applicable premium: if the redemption date
is on or prior to July 1, 1955, a premium equal to
twelve months* interest computed at the rate or
rates the bonds redeemed would bear on the redemption
date had they not been called for redemption; if
the redemption date is after July 1, 1955, and
on or prior to July 1, 19603, a premium equal to six
months* interest computed at the rate or rates the
bonds redeemed would bear on the redemption date had
they not been called for redemption; and if the re-
demption date is after July 1, 1960, without premium.
Any such call for redemption shall be effected in the
following manner:
Al .
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(1) The city by resolution of the
council shall call for redemption on a
stated date callable bonds bearing stated
numbers.
(2) The city shall cause to be pub-
lished one time in a newspaper published
in the City of Birmingham, Alabama, a
notice stating the numbers of the callable
bonds which have been so called for re-
demption, and stating that the callable
bonds bearing such numbers shall become
due at the redemption price on the date
specified. In the event there is no
newspaper published -in the City of
Birmingham, Alabama, on the date specified
by the council for the publication of such
notice, then such notice shall be published
one time in a financial journal published
in the City of New York, New York. Any
such notice shall be published not less
than thirty days prior to the redemption
date.
All of the callable bonds so called for redemption
shall become due and payable at the place at which the
same shall be payable, at the redemption price and on
the redemption date specified in such notice, any-
thing herein or in the bonds to the contrary notwith-
standing. The bank at which the callable bonds are
payable shall not be required to pay any coupon ma-
turing on the redemptbn date which is applicable to
any callable bond so called for redemption unless the
callable bond to which such coupon is applicable is
also presented for payment; provided, that in the
event such bank should pay any such coupon without
payment of the applicable callable bond it shall not
be liable to the holder of such applicable callable
bond or to the city or to anyone whomsoever; and pro-
vided further, that any such bank shall pay such
coupon out of the moneys supplied to it by the city
for such purpose 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 callable bond to which_such coupon is
applicable.
Section 6. Pledge. The bonds shall be and
constitute general obligations of the city for the
payment of the principal of and interest on which the
full faith and credit of the city are hereby irrevoc-
ably pledged. In addition thereto there is hereby
further irrevocably pledged for payment of the princi-
pal of and interest on the bonds, without preference
or priority of one of the bonds over another,so c
s may be �necoe�s for such purpose of the�__add_i_,tol
�nnua a tax o__ per eentum_authorize
by Amendment VIII to the Cons uYion of Alabama of
1901 to be levied and collected by the city for the
purpose of paying bonds issued after the adoption of
said amendment and the interest thereon. The city
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hereby agrees that so long as any portion of the
principal of or interest on the bonds remains unpaid
the city will annually levy and provide for the col-
lection of the said additional ad valorem tax at the
times and in the manner provided by the laws of Ala-
bama and will apply so much of the proceeds received
therefrom as may be necessary to pay the principal of
and interest on the bonds as the said principal and
interest respectively mature.
Section 7. Payment at par. The banking
institution at which the bonds are payable, by ac-
ceptance of its duties hereunder, shall be construed
to have agreed thereby with the holders of the bonds
and the coupons that it will make all remittances of
principal of and interest on the bonds andoDupons
out of moneys supplied to it by the city for such
purpose in bankable funds at par and without deduction
for exchange, fees or expenses. The city agrees with
the holders of the bonds and the coupons and with the
said banking institution that it will pay all charges
for exchange, fees or expenses which may be made by
such bank in the making of remittances in bankable
funds of the principal of and interest on the bonds
and the coupons at par.
Section 8. Form of bonds. The bonds and
the coupons shall be in substantially the following
forms with appropriate changes therein to conform to
the provisions hereof:
(Form of Bond)
No. $1,000
UNITED STATES OF AMERICA
STATE OF ALABAMA
CITY OF FAIRHOPE
GENERAL OBLIGATION SEWER BOND
On the 1st day of July, 19 , for value
received, the City of Fairhope (herein called "the
city"), a municipal corporation in the State of
Alabama, promises to pay to the bearer hereof the
-principal sum of
O N E T H O U S A N D D 0 L L A R S
with interest thereon from the date hereof until the
maturity hereof at the rate of I.' per per annum
payable semi-annually on January 1 and July 1 in each
year until maturity hereof upon surrender of the
annexed interest coupons as the same severally mature.
Both the principal hereof and interest hereon are
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.
40
This is one of a duly authorized issue of
bonds in the aggregate principal amount of $81,000
numbered from 1 to 81, inclusive (herein called "the
bonds"), which have been issued pursuant to the
applicable provisions of the constitution and laws of
Alabama, including particularly Chapter 6 of Title 37
of the Code of Alabama of 1940, as amended, and an
election duly called and held in the city on May 9,
19501, and proceedings duly adopted by the governing
body of the city for the purpose of constructing
sewers in the city. Those of the bonds maturing in
1953 and thereafter are subject to redemption at the
option of the city on any interest payment date on
and after July 1, 1952, as a whole or in part in in-
verse numerical order, after not less than thirty days'
prior published notice, at the face value thereof
plus accrued interest thereon to the redemption date
and plus the following applicable premium: if the
redemption date is on or prior to July 13, 1955, a
premium equal to twelve months' interest computed at
the rate or rates the bonds redeemed would bear on
the redemption date had they not been called for -re-
demption; if the redemption date is after July 1, 1955,
and on or prior to July 1, 1960, a premium equal to
six months' interest computed at the rate or rates
the bonds redeemed would bear on the redemption date
had they not been called for redemption; and if the
redemption date is after July 1, 1960, without premium.
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.
It has been ascertained and found and it is
hereby certified and recited that all conditions,
actions and things required by the constitution and
laws of Alabama to exist, be performed or happen
precedent to or in the issuance of this bond and the
creation of the indebtedness evidenced hereby exist,
have been performed and have happened, and that the
indebtedness evidenced by this bond, together with
all other indebtedness of the city, was when incurred
and now is within every debt and other limit prescribed
by the constitution and laws of Alabama.
IN WITNESS WHEREOF, the city has caused this
bond to be executed in its behalf by its mayor and its
city treasurer, has caused its corporate seal to be
hereunto affixed, has caused the annexed interest
coupons to be executed with the -facsimile signatures
of the said mayor and treasurer, and has caused this
bond to be dated July 1, 1950.
CITY OF FAIRHOPE
Mayor
By
City Treasurer
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(Form of Coupon)
Coupon
No.
On the 1st day of , 19 ,
the City of Fairhope in the State of Alabama promises
to pay to the bearer hereof, at the principal office
of The Merchants National Bank of Mobile, in the City
of Mobile in the State of Alabama,
Dollars in lawful money of the United States of
America, being six months' interest then due on the
General Obligation Sewer Bond of the City of Fairhope
dated July 1, 1950, and numbered .
Mayor
City Treasurer
Following the maturity date in the first
line of the first paragraph of each of the callable
bonds, there shall be inserted the following:
"(unless this bond shall have been
duly called for prior payment),"
Following the maturity date of each coupon
due on and after January 1, 1953, there shall be in-
serted the following:
"(unless the bond to which this
coupon is applicable shall have
been duly called for prior pay-
ment),"
Section 9. Contractual provisions. The
provisions of this ordinance shall constitute a con-
tract between the city and each holder of the bonds
and the coupons.
Section 10. Severability. The various pro-
visions of this ordinance are hereby declared to be
severable. In the event any provision hereof shall
be held invalid by a court of competent jurisdiction
such invalidity shall not affect any other portion of
this ordinance.
Section 11. Sale of bonds. The bonds may
be sold as.a whole or in part, and if sold in part
then they may be sold from time to time in such manner
and at such times and under such conditions as may
heretofore have been fixed or may hereafter be fixed
by resolutions of the council from time to tire adopted.
The proceeds derived from the sale of the bonds shall
be used solely for the purpose for which the same are
authorized to be issued.
Adopted and approved this 2'ttr day o
1950-
. il=...gin..
Authenticated:
Cit34Clerk
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Councilman A moved that the rules be
suspended and unanimous consent be given for immediate
consideration of and action on said ordinance, which
motion was seconded by Councilman 65 , 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 ordinance had been unanimously carried.
Councilman thereupon moved that the said
ordinance be finally adopted, which motion was seconded
by Councilman , and upon said motion being
61
put to vote the following vote was recorded: Yeas:
Mayor Klumpp and Councilmen Berglin, Bradford, Brown,
Overton and Steele; Nays: None. The mayor there-
upon announced that the motion for adoption of said
ordinance had been unanimously carried and he there-
upon signed the same in approval thereof.
The mayor stated that this was the date and
time which had been provided by resolution adopted by
the council on June M 1950, for the sale at public
auction of $81,000 principal amount of General Obli-
gation Sewer Bonds of the city to be dated July 10
19503, which were authorized to be issued under the
provisions of Ordinance No. .2A6 of the city. The
mayor further stated that notice of the sale of said
bonds was filed with the Department of Finance of the
State of Alabama on June 4, 1950, which date was
fourteen days prior to the date fixed for the said
sale, and was also published in the Fairhope Courier,
a newspaper published and having general circulation
y�
W
in the city, such publication having occurred on
June tj and ��, 1950, the first publication being
more than ten days prior to the said date of sale,
the notice so filed and published in each instance
having been in the form set out in the said reso-
lution �roviding therefor adopted by the council on
June , 1950.
Councilman then introduced
the following resolution in'writing which was read to
the meeting:
RESOLVED that the City Council of the
City of Fairhope, Alabama do now proceed
to offer for sale at public auction $81,000
principal amount of General Obligation Sewer
Bonds of the city to be dated July 1, 1950,
heretofore authorized to be issued under the
provisions of Ordinance No. 2,0 of the
city, and that the mayor of the city act as
auctioneer in conducting said sale.
t
Councilman moved that the foregoing
resolution be opted, which motion was seconded by
Councilman , and upon roll call the
following vote was recorded: Yeas: Mayor Klumpp
and Councilmen Berglin, Bradford, Brown, Overton
and Steele; Nays: None. The mayor thereupon declared
the resolution had been duly adopted.
The mayor then announced that those who de-
sired to qualify as bidders at the said sale should
deposit with the city clerk a cashier's check or a
certified check in the amount of $1,620.00 payable to
the order of the city as stated in the notice of sale,
whereupon the following qualified as bidders by
depositing such checks:
/, yYc�f .c c t A &-3-r-C (A) i ( o - �u �r� 6C cc-
. , e
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The bidding proceeded among those who had
qualified as bidders and after all bids had been made
and all bidders had dropped out and ceased bidding
except?
who made the last bid for said bonds, the council pro-
ceeded to consider the bids so made and after tabu-
lation of the bids had been completed, the following
resolution was introduced in writing by Councilman
and read ' to the meeting:
RESOLVED by the City Council of the
City of Fairhope in the &tate of, Alabama
that the bid of Sf"70- f !JA x -� �;
in the amount of ' • 46 o_ �� of par, equal
to 9140� o, 6 o , plus accrued interest
to the date of delivery thereof, for $81,000
principal amount of General Obligation Sewer
Bonds of the city to be dated July 1, 1950,
authorized to be issued -under the provisions
of Ordinance No. 9LP*$ of the city, bearing
interest at the following per annum rate
which interest shall be payable semi-annually
on January 1 and July 1, be and the said bid
is hereby ascertained and declared to be the
bid made for the said bonds reflecting the
lowest net interest cost to the city and to
constitute the best bid received therefor,
and the said bid is hereby accepted by the
city and the said bonds are hereby sold and
awarded to the said bidder, subject to the
. . A
i
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approval of Messrs. White, Bradley, Arant &
All as to the legality and validity of the
said bonds.
Councilman moved that the rules be sus-
1 9
pended and that unanimous consent be given for im-
mediate consideration of and action on said resolution,
which motion was seconded by Councilman ,
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 the immediate consideration
of and action on said resolution had been unanimously
carried. Councilman A�"c` thereupon moved
that the said resolution be finally adopted, which
motion was seconded by Councilman
and upon the motion being put to vote the fo lowing
vote was recorded: Yeas: Mayor Klumpp and Council-
men 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 then introduced
the following ordinance in w/iting, which was read
to the meeting:
ORDINANCE NO. t io
AN ORDINANCE TO FIR THE RATE OF INTER-
EST TO BE BORNE BY $81,000 PRINCIPAL
AMOUNT OF GENERAL OBLIGATION SEWER BONDS
TO BE DATED JULY 1. 1950
BE IT ORDAINED by the City Council of the
City of Fairhope in the State of Alabama that
. . ea
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the $81,000 principal amount of General Obli-
gation Sewer Bonds of the city to be dated
July 12 1950, which were authorized to be
issued under the provisions of Ordinance No.
Hof the city, and which were sold by
the city by resolution adopted on June 2$,
1950,'shall be r interest at the per annum
rate S of ee.. V /g,,'iA
which interest shall be payable semi-annually
on January 1 and July 13, that the said rate
of interest be inserted in said bonds, and
that the denomination of the coupons appli-
cable to the said bonds be computed at the said
rate
�.v
q.rx�Adopted and approved this 28th day of
June, 1950.
A thenticate Mayor
City Clerk
Councilman moved that the rules be sus-
pended and that unanimous consent be given for -im-
mediate consideration of and action on said ordinance,
which motion was seconded by Councilman
i
and upon the motion being put to vote the following
vote was recorded: Yeas: Mayor Klumpp and Council-
men Berglin, Bradford, Brown, Overton and Steele;
Nays: None. The mayor thereupon declared that the
motion for unanimous consent for the immediate con-
sideration of and action on said ordinance had been
unanimously carried. Councilman��-
thereupon moved that the said ordinance be finally
adopted, which motion was seconded by Councilman
and upon the motion being put to
vote the following vote was recorded: Yeas: Mayor
Klumpp and Councilmen Berglin, Bradford, Brown, Over-
ton and Steele; Nays: None. The mayor thereupon
announced that the motion for adoption of said
r
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ordim nee had been unanimously carried, and he signed
the same in approval thereof.
There being no further business to come
before the meeting the same was on motion duly adjourned.
Mayor
OP
City Clerk