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HomeMy WebLinkAbout11-09-1953 Regular Meeting (2)EXCERPTS FROM MINUTES OF A REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF FAIRHOPE, ALABAMA, HELD ON THE 9th DAY OF NOVEMBER, 1953 The Mayor and City Council of the City of Fairhope, Alabama, met in regular session at the city hall in said city on the 9th day of November, 1953, 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, L. E. Blatchford, R. C. Mason, , and J. D. Mason; and the following members of the city council were found to be absent: lam,. "o, (/C,66 . Marie Moore, the city clerk, was also present at the meeting and acted as clerk thereof. The mayor presided at the meet- ing and announced that a quorum was present and declared the meeting was open for the transaction of business. The minu- tes of the preceding meeting were read and approved. The following resolution was introduced in writing by Councilman nae -,_A- and read to the meeting: BE IT RESOLVED by the Mayor and City Council of the City of Fairhope.(herein called "the city") in the State of Alabama that the Mayor is hereby authorized and directed to execute, for and in the name and behalf of the city, an agreement with The Water Works and Sewer Board of the City of Fairhope pertaining to disbursements made by said board out of the revenues derived from the operation of its water and sanitary sewer system in substantially the following form, to which the city clerk is authorized to affix the seal of the city and to attest same: - 2 - AGREEMENT between THE WATER WORKS AND SEWER BOARD OF THE CITY OF FAIRHOPE, a public cor oration under the laws of Alabama (herein called "the boardll�, and the CITY OF FAIRHOPE, a municipal corporation under the laws of Alabama (herein called "the city►�): R E C I T A L S By unilateral contract dated August 29, 1950, for value received, the board agreed with the city that it would make no disbursement out of the revenues derived by it from the operation of its water works and sanitary sewer system (herein called "the system") in excess of �'1,000 during any period of thirty consecutive days without prior approval by the governing body of the city, except as required by the provisions of that certain indenture of mortgage and deed of trust between the board and The Merchants National Bank of Mobile dated July 1, 1950 (herein called "the underlying in- denture") executed by the board as security for its Mortgage Water and Sewer Revenue Bonds dated July 1, 1950. The board now desires to construct extensions and improvements to the system and proposes to finance such construction by the sale and issuance of its Water and Sewer Revenue Bonds to be dated July 1, 1953 (herein called 11the new bonds") payable out of the revenues to be derived from the system and secured by an indenture of mortgage and deed of trust from the board to The Merchants National Bank of Mobile ,'to be dated as of July 1, 1953 (herein called "the new indenture"). The board will, however, be unable to issue and sell the new bonds advantage- ously if the above described restriction on disbursements remains in effect. The city recognizes the need of the board for funds with which to construct extensions and improvements to the system and the substantial benefit that will accrue to the city and its inhabitants if such extensions and improve- ments are so constructed and advantageously financed. NOW, THEREFORE, in consideration of the agreements of the board hereinafter contained and in.ccnsideration of the issuance and sale by the board of the neA bonds, it is hereby agreed by and between the board and the city as follows: 1. The board and the city do hereby rescind and cancel that certain unilateral contract of the board running in favor of the city dated August 29, 1950, referred to above, and all covenants and agreements of the board therein contained shall be and hereby are terminated and cancelled. 2. The board hereby covenants and agrees with the. city that it will make no disbursement from the revenues derived from the operation of its water works and sanitary sewer system in excess of �1,000 during any period of thirty consecutive days, unless such disbursement (exceeding $1,000 during any such period) shall have been approved by a reso- lution or ordinance duly adopted by the governing body of the city, provided however that the provisions of this paragraph 2 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 underlying indenture, -to any sums that may be paid by the board into the bond fund, the reserve fund,, or the surplus fund created in the new indenture or to any sums re- quired by the new indenture to be paid into the improvement ,fund created in the underlying indenture, but shall apply to all disbursements from the water and sewer revenue accounts created in both the underlying indenture and in the new in- denture (except disbursements from said accounts into said j 0- 0 special funds), and shall further apply to any disbursements from said improvement fund. IN WITNESS WHEREOF the board and the city have caused this agreement to be executed in their respective cor- porate names and have caused their corporate seals to be here- unto affixed and attested by their respective officers, all of whom are hereunto duly authorized, in four counterparts, each of which shall be deemed an original, this the day of November, 1953. THE WATER WORKS AND SEWER BOARD OF THE CITY OF FAIRHOPE By Chairman of its Board o Directors Attest: Its Necretary CITY OF FAIRHOPE By r r is yo Attest: Its City Clerk - 4 - Adopted and approved this 9th day of November, 1953. Mayor Authenticated: City Clerk Councilman moved that unanimous consent be tj given for immediate consideration of and action on said reso- lution, 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, Blatch- ford, R. C. Mason, Most and J. D. Mason; Nays: 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 fins ly adopted, which motion was seconded by Councilman V , and upon the motion being put to vote the following vote was recorded: Yeas: Mayor Klumpp and Councilmen Berglin, Blatchford, R. C. Mahon, Overtorr and J. D. Mason; Nays:�L None. The mayor thereupon announced that the motion for adoption of said resolution had been unanimously carried and he thereupon signed the same in approval thereof. Thereupon, Councilman y,/�/i�c.g_.'�--- introduced the following resolution in writing which was read to the meeting: BE IT RESOLVED by the Mayor and City Council of the City of Fairhope that the foregoing resolution auth- orizing the execution on the part of the city of an agree- ment with The Water Works and Sewer Board of the City of r- -5- Fairhope be published in The Fairho a Courier, a newspaper published and of general -cTr-cu at on in~t�ie city, one time in its issue of November 12, 1953, and the city clerk hereby is authorized and directed to effect such publication. I--_ CouncilmanLz-.4e,6" moved that the said resolution be adopted, which motion was seconded by Council- man , and upon the motion being put to vote the following vote was recorded: Yeas: Mayor Klumpp and Councilmen Berglin, Blatchford, R. C. Mason, Overton and J. D. Mason; Naps: 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. Mayor Ar City Clerk