HomeMy WebLinkAbout08-28-1950 Regular Meeting,.k
EXCERPTS FROM MINUTES OF THE
MEETING OF THE CITY COUNCIL
OF THE CITY OF FAIRHOPE, ALA-
BAMA, HELD ON THE 28TH DAY
OF AUGUST, 1950
The City Council of the City of Fairhope,
Alabama, met in regular session at the regular meeting
place on the 28th day of August, 1950, at 7:30 o'clock,
P.M. 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: M. 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 absent:
y � o Ny c . Miss Marie
Moore, the city clerk, was also present at the meeting
and acted as clerk thereof. The mayor presided at the
meeting and announced that a quorum was present and de-
clared the meeting was open for the transaction of busi-
ness. The minutes of the preceding meeting were read
and approved.
The following resolution was introduced in
writing by Councilman and read to the
meeting:
BE IT RESOLVED by the City Council (herein called
"the council") of the City of Fairhope (herein called "the
city") in the State of Alabama as follows:
1. The council does hereby ascertain and declare
that the following facts are t ue: the city has on hand
and unexpended a.balance of $ to o in cash which
was borrowed by the city for the purpose o —constructing
sewers in the city; the said unexpended funds can be used
only for the purpose of constructing sewers and, therefore,
- 2 -
constitute property appertaining to and forming a part
of the water works and sanitary sewer system of the city
which was authorized to be conveyed to The Water Works
and Sewer Board of the City of Fairhope by Ordinance No.
207 of the city adopted on August 7, 1950, upon payment
to the city by the board of the consideration specified
in said ordinance; the said unexpended funds should,
therefore, be transferred to the board as a part of the
said water works and sanitary sewer system.
2. Simultaneously with the conveyance of
the physical properties constituting the water works
and sanitary sewer system of the city to the board
pursuant to the provisions of said Ordinance No. 207,
the mayor of the city is hereby authorized and directed
to transfer and deliver to the board the said unexpended
funds.
Adopted and approved this 28th day of August,
1950.
Authenticated: Mayor
V-7
7
Councilman moved that unanimous consent be
given for immediate 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 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, 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,
- 3 -
Overton, and Steele; Nays: None. The mayor thereupon
announced that the motion for adoption of said reso-
lution had been unanimously carried and he thereupon
signed the same in approval thereof.
e being no further business afore
the meetin was otion duly adjourned.
Mayor
'P , 7�n
City C er
Motion by Councilman Steele seconded by Councilman Brown
that the application of D. C. Byrne Jr. for building
permit be allowed as per sketch on file. Motion carried.
Motion by Councilman Overton seconded by Councilman Brown
that the City donate Electric service to the Public School
Music Room. Motion carried.
Motion by Councilman Steele seconded by Councilman Overton
that all employees of the City be required to sign an anti-
communist oath and file it with the City Clerk, The Mayor is
hereby instructed to have the oath prepared and cause
Municipal employees'to sign and file same. In any event any
employee shall fail to sign this oath when presented, the
Mayor is hereby authorized and directed to dismiss employee
at once. Motion carried.
Motion by Councilman Overton
that the following Resolution
RESOLUTION
seconded by Councilman Brown
be adopted.
WHEREAS, as shown by the City of Fairhope audit made
by Smith, Dukes and Buckalew, certified 'accountants, as of
September 30, 1949, there are carried to the credit of the
Electric Fund certain Water and Sewer Warrants aggregating
the sum of $151500.00, and
WHEREAS, the Municipal Electric Light System is not
in debt or otherwise obligated or encumbered, and the
assets of such system are wholly the property of the City
and subject to the action of this Council, and it appears to
be right and proper that such Warrants being the property
of the City be cancelled and discharged;
NOW THEREFORE BE IT RESOLVED by the City Council that
such warrants be and they are hereby cancelled and discharged
and the Mayor and Clerk are.authorized to cancel such
warrants and to make proper entry thereof on the books of
the City.
NOW THEREFORE BE IT FURTHER RESOLVED that the Mayor
and Clerk surrender to the Electric Fund the said Warrants,
cancel the same, and credit the proceeds on the Water and
Sewer Fund Account owing to the Electric Fund.
Motion by Councilman Steele seconded by Councilman Brown
that the meeting adjourn. Motion carried.
Approved
mayor
Attests
�ityClerk
S
Executed in iL Counterparts of
Which This is Counterpart # /
TRUST AGF2F_iLNT bt t o'cM the CITY OF FAIRHOPE, a
municipal corporation under the laws of Alabama (herein called
19 the city") , and THE AERCHANTS NATIONAL BAIQK OF i.iOBILE, a
national br-nking corporation organized under acts of Congress
and authorized to administer trusts (lieroin called "the; trusteett);
R E C I T A L S
The city has contcmporc.rieously with the delivery of
this agrccmkk nt transferred and conveyed to The Pater 1.1orks and
'Sewer Board of the City of Fa.irhope, EL public cory)oration under
the laws of Alabe iia (herein called "the board"), the grater y,orks
and sanitary sewer system (herein called "the systezntt) of the
city. The city has heretofore issued and them: are now outstand-
ing its Waterjo�•k-1 and Sewcre:ge System Revenue Bonds dated
July 1, 1934 numbered 51, 68 to 71, inclusive, and 74;, together
aggregating w6,000 in principal amount (herein called "the city
bondstt), which are secured by a pledge: of revenues from the
system. Each of the city bonds is in the dcnoaination of ',;1,000
and they mature in their nuzrierical order in the following
aggregate principal amounts on July 1 in the follotirinl years:
u1,000 in 1953; tiA,000 in 1959; end ',pl,000 in 1960. The city
bonds beer interest at the rate of 4% per anniza, payable so. -di -
annually on January 1 and July 1 in each year as evidenced by
separate interest cbu_)ons thereto attached. All interest matur-
ing on the city bonds on July 1,1950, and prior thereto has been
paid. The city bonds are not subject to redemption prior to
their respective maturities, and the principal thereof and the
interest thereon are payable at the office of the city treasurer
of the city.
Pursuant to the applicable provisions of the statute
of Alabama under which the city was authorized to transfer and
convey and slid transfer and convey the system to the board,
the board paid to the city at the time of such transfer 7nd
conveyance an amount of i-aoney sufficient to provide funds to
retire the city bonds and other bonds of the sa.-ae issue which
have been retired si,nultaneously with the execution of this
agreement. As can inducement to the acquisition -of title to the
system by the board, and in order to enable the board to effect
the sale of its mortgage 1-later and Sewer Revenue Bonds dated
July 1, 1950 (herein called Itthe board bonds"), and as an induce-
ment to the purchase of the board bonds from the board by the
purchaser thereof, the city has agreed with the board and with
the r)urchaser of the board bones , that the city will deposit with
the trustee, on the trust and condiClions hereinafter set out,
so much of*the moneys paid to the city by the board as may be
necessary to -pay at their respective :maturities the principal of
and the interest on the city bonds. To that end the city has
contemporaneously with the delivery hereof deposited with the
trustee the sum of $920.87 in cash and �6,000 principal amount
of bonds issued by the United States of America (herein called
'I{,he United States Fonds") and has caused the United States bonds
to be registered both as to principal and interest in the ncme
of the trustee, as trustee hereunder. The United States bonds
consist of the following:
One United States Treasury Bond (herein called
"the treasury bond") in the principal amount of ",;,l,000
due Deceaber 15, 1954, bearing interest at the rate
of 2% per annLLa payable semi-annually on June 15 and
December 15, with the option reserved by the United
States of calling the saint for redemption at -)ar and
accrued interest on December 15, 1952; and
-2-
%,5,000 principal amount of United States Saving
Bonds, series G, dated July 1, 1950, due July 11 19622
and bearing interest at the rate of 2 % per annum,
payable se.ai-annually on January 1 and July 1.
The said sum of ��920.87 in cash and the United States bonds,
together with the income therefrom and the proceeds thereof; are
herein together sometimes celled "the trust fund1l. The pexties
have entered into this agreeiaent in order to set forth the terms
under which the trust fund shall be handled by the trustee.
NOW5 THEREFORE, THIS AGREEMENT 1:ITXESSTH:
In consideration of the premises and the respective
agreements of the parties herein contained, it is hereby agreed
by and bets-een them as follows
Section 1. The trustee is hereby authorized and
directed to hold the trust fund in trust and to apply the same
solely for the following purposes and in the following Yaa.nner:
(a) The trustee shall receive all remittances
which may from time to time may be paid or remitted
to it with respect to the United States bonds.
(b) The trustee shall available out of the
trust fund, at the place,at which the city bonds are
payable, on January 1, 1951 and on eachsuccessive July
1 and January 1 thereafter until and including July 1,
1960 amounts sufficient to pay on said respective dates
the principal and interest which will respectively
mature on said dates with respect to the city bonds
which may at the time be outstanding.
(c) The trustee shall from ti,iie to time sell
or otherwise convert into cash so many, and only so
many, of the United States bonds as shall produce
funds sufficient, when added to the cash at the time
forming a part of the trust fund, to pay at their
respective :Maturities the p incipa.l of and the inter-
est on t-he city bonds; provided, however, that the
treasury bond shall be the first of the United States
bonds to be sold or so converted into cash; and. pro-
vided, further, that none of the United States bonds
shall be converted into cash by the trustee ,prior to
the maturity date of the principal of and interest on
the city bonds for payment of which such conversion
shall be made.
Section 2. 11hen amy of the city bonds and. any interest
coupons applicable thereto are paid, they shall thereupon be
cancelled by perforation and shall not again be issued or refund-
ed.
Section 3. Any moneys which may remain in the trust
fund after retirement of all of the city bonds shall be forthwith
returned by the trustee to the city.
Section 4. Upon payment or application of zaoneys by
the trustee in the manner herein provided, the trustee shall
thereupon stand discharged of all further liability with respect
to the moneys so paid or applied by it.
-3-
Section 5. The city agrees that all moneys made avail-
able by the trustee, pursuant to the provisions hereof, for pay-
ment of the principal of and the interest on the city bonds shall
be deemed trust funds which can be applied only for payment of
said principal and interest at or after their respective maturi-
ties.
Section 6. The city will pay to the trustee, annually
upon receipt of statement therefor, the customary fee of the
trustee for administering the trust fund, and will further re-
imburse the trustee, promptly upon receipt of statement therefor,
for all reasonably necessary expenses incurred by the trustee
in the performance of its duties hereunder.
Section 7. The trustee acknowledges receipt of the
United States bonds and the cash deposited herewith, and agrees
to hold, handle and dispose of the trust fund in the manner
herein provided.
Section 8. The term "trustee's herein used shall be
construed to include not only the bank herein named but also its
successors and any bank or trust company resulting from any
merger or consolidation to which the bank herein named or its
successors may be a party.
Section 9. This agreement is made for the benefit
of the board, the holders at any time of any of the city bonds,
and the holders at any time of any of the board bonds.
IN WITNESS WHEREOF, the parties have caused this agree-
ment to be executed in four counterparts, each of which shall be
deemed an original, and their respective corporate seals to be
hereto affixed And attested, all by their duly authorized officers,
on August Z , 1950, and have caused this agreement to be
dated the .ls ay of July, 1950.
CITY AIRHOPE
By
s mayor
ATTEST:
City{ Clerk -
THE MERCHANTS NATIONAL BANK OF
MOBI
nL
By r
Its V,, NA--/
ATTEST
Cc.
EExecutedn -3 Counterparts of
s is Counterpart
For value received, The Water Works and Sewer
Board of the City of Fairhope, a public corporation under
the laws of Alabama (herein called "the board"), hereby
agrees with,the City of Fairhope, a municipal corporation
under the laws of Alabama (herein called "the city"),
as follows:
The board will make no disbursement from the
revenues derived from operation of the water works and
sanitary sewer system in the city to be acquired by the
board, in excess of $1,000 during any period of thirty
consecutive days, unless any such disbursement (exceeding
$1,000 during any such period) shall have been approved
by a resolution duly adopted by the governing body of
the city; provided, however, that this agreement shall
not apply to any sums that may be paid by the board into
the Bond Fund, the Reserve Fund, and the Improvement Fund
created in the Mortgage and Deed of Trust by the board
to The Merchants National Bank of Mobile dated July 1,
1950, but shall apply to all disbursements from the
Water and Sewer Revenue account created in said mortgage
and deed of trust (except disbursements from said account
into said special funds), and shall apply to any disburse-
ments from said Improvement Fund.
IN WITNESS WHEREOF, the board has caused this
agreement to be executed in its corporate name and its
corporate seal to be hereto affixed and attested by its
duly authorized officers, this 6k day of August,
?950.
test:
Sec etary
THE WATER WORKS AND SEWER BOARD
OF THE CITY OF FAIRHOPE
By
Chairman of its Boa d o
Directors
9fatksqRo"Otu &-,Co.
ill ,
----q INVESTMENT SECURITIES
WOODWARD BUILDING
BIRMINGHAM, ALABAMA
ESCROW P.GUFNENT FIGURES FAIRHOPE, ALAB1,,MTA WAV`- t AND -"EVER 3)Nl:-b
S-6.9000 Outstanding Fpirhope, Al, . water t Gnvernment rion-do purclhRaed for -L��cro'ws
bond3- for Which Govt. bon &re $50,00 aeries "GII 2 1/2s dated V1/50
escro,wed ns follow-ot 11000 U* 8, Treas. 2s 12/15/54/52
$1,03D due luA.Z., 1,195-1
4,000 1959-
10000 1960
Interest & Frizzic. p:iy-acnts due on above out-
standing 36.,000 Bonds or,
l/l/51
120
'711151
120
1/1/52
120
7/1/52
120
1/1/53
120
7/1/53
1,120
1/1/54
100
t/1/54
130
l/l/55
100
7/1/55
1130
I/l/56
V1/56
1/1/57
100
'711/ 5 7
100
1/1/58
1001
7/1/ 5 8
100
1/1/50
100
'7/1/59
4,100
I/l/60
20
1.020
JV,960.
Inter & Pi-inc. Receivtact o'a &Love Govtss,
2,.J.- 0,•62.50)
2% , 10,00)
In event U. �. Treas 2% c,`, lled on
redell-*Vtian date Upcol5p1952 - Accrued
int
erest to jalturity of Outstanding
14 bond due 7/1/53 -(6Mos)
Amount due on Outstanding 6,4 Fpirhopes - t7s,60,00
Recejved on 6K Gover=ents--,
Cash needed to meat payments nat
to be paid by 1,k� tkinsj, Mo.:-riDw 920.67
$ a 72*50
72.50
72*50
721.50
72,50
1072.50
62.50
62.50
62*50
62*50
62.50
62.50
62*50
62,50
62 *50
62,50
62.50
3942.50
V.50
.'8
� 81jo--
3-tO66000
16.0A, Prenviluz Pd M �4T,.'&s
7,049.96
. .10 t.
—f7j039.13