HomeMy WebLinkAbout01-12-1958 Regular MeetingSTATE OF ALABAMA
County of Baldwin
The City Council, of the City of Fairhope met in regular session at the City
Hall, Monday, January 12, 1958 with the following members present: Mayor
E. B. Overton, City Manager C. B. Niemeyer, Councilmen: M. 0. Berglin, C. F.
Belew, W. 0. Poser andB. L. Shull. Councilman Wm. R. Ruffles, Jr. being
absent.
Motion by Councilman Belew. seconded by Councilman Berglin that the minutes
of the -previous meeting be approved as read. Motion carried.
Motion by Councilman Shull seconded by Councilman Berglin that the applica—
tion for building permit of Robert Turner be approved as submitted. Motion
carried.
Motion by Councilman Belew seconded by Councilman Shull that E. B. Overton,
Mayor, be and he is hereby authorized and directed to advertise for bids
on construction of street improvements as set out in Ordinance #254 and
Ordinances and Resolutions supplemental, thereto„ bids to be received on or
before February 23,. 1959 and to be opened and contract let at the regular
meeting of the City Council on February 23, 1959. The Council reserves
the right to reject any and all bids.
Upon being put to vote the following vote vtas recorded. Voting Yes: Council—
men: Belew, Berglin, Poser and Shull. Voting No: None. Motion carried.
Motion by Councilman Shull seconded by Councilman Belew that the Mayor and
City Manager be instructed to consult with the Fairhope Single Tax Corpora—
tion pertaining to widening Magnolia Avenue, Johnson Street and Bancroft
Street. Motion carried.
Motion by Councilman Poser seconded by Councilman Shull that the bill of
Byrd L. Moore C o. for engineering services be approved for payment. Motion
carri ed.
Motion by Councilman Poser seconded by Councilman Berglin that the bleachers
and lights at the old football field be given to the Baldwin County Training
School and that the City Electric Department move the lights and poles.
Motion carried.
Motion by Councilmen Berglin seconded by Councilman Shull that the following
Resnlution he adopted: Motion carried.
BE IT RESOLVED by the City Council of the City of Fairhope, that Arthur
Mann i ch, as Chairman of the Water and Sewer Board of the City of Fairhope, and
George Dyson, as superintendant of the Fairhope'Nater and Sewer System, be
and they are hereby authorized and directed to sign payment requests or
orders to the Merchants National Bank of Mobile for the payment of moneys.out
of the Water and Sewer System Construction Fund deposited with it as trustee
of such fundby trust indenture of the City of Fairhope to the Merchants
National Bank of Mobile, dated January 13, 1959.
Motion by councilman Berglin seconded by Councilman Poser that the following
bills be approved for payment. Motion carried.
General Fund,:
Fairhope Service Center
4-00
Virgil Herston
20.00
John S. Huffman
50.00
City Market : Grocery
1.89
Fairhope Courier
81..92
Fairhope Pharmacy
3.35
Bay side Service Station
.90
Riviera Utilities
2.33
Ernest M. Bailey
6.50
Western Lumber
92.95
Mal ter Supply Co., Inc.
84-00
Western Auto Assoc. Store
1.46.31
Moore Supply Co.
38.97
Ray Brooks Machinery Co.
8.95
McKean faint _ Hdw.e.
I I •I
Fairhope Hdwe. & Supply
2.9
May Machinery Co.
58.00
Central Cafe
Rose C. Kamper
J. Vasko Co.
Launder -Rite
K I umpp Motor Co.
Jordan Clinic
Radcliff Gravel Co.
Ruffles Co., Inc.
M & S Service Station
Melton's Garage
English and Bates Wrecking Co
Goodyear Service Stores
Gaston Motor Co.
Fairhope Single Tax Corp.
Herbert Forster
Dual Parking Meter Co.
John R. Cowley & Bro.
Miro-Flex
Gulf Oil Corp.
Mobile Harley-David6on
Mobile Melding Supply
Electric Fund;
Rivierau Uti I ities
Western Auto
Ala. wood Preserving
Bills Standard Station -
McKean Paint and Hdwe.
Fairhope Hdwe. & Supply
Turner Supply Co.
H. S. St. Jahn
K I umpp Motor Co.
Goodyear Service Stores
Moore Handley Hdwe.
Nix tz Cummings
E . Dunean
Goodyear Tire and Rubber Co.
Southern Bel I Tel. ': Tel.
Gen. Elect. Supply Co.
Hatfield Co.
Lighting Fixture a Elect. Supply
Gulf Oil Corp.
Mobile Welding Supply
Gas Fund:
Ruffles Co.
United Gas
Hands Welding Shop
Moore Supply Co.
McKean Paint U Hdwe..
Fairhope Hdwe. & Supply
M R S Service Station
Standard Equip. Co.
Moore Handley Hdwe..
United Gas
MueI Ier Co.
American Meter Co.
Universal Controls
Marine Spec. Co.
Gulf Oil Corp.
Cooper Transfer
C. L. Rousseau
a
241.75
8.00
11.50
18.00
224.50
5.00
123.75-
36.26
3.40
82.7,2
6.50
61.27
283.95
305.83
50.50
70.53
16.80
614.66
380.66.
5.75
167.63
6,820.61
56.50
469.12
6.45
4.50
9.57
20.34
120.00
18.45
45.00
49.21
5 2'.58
577.79
46.06
330-CO
392.27
742.70
23.99
75.50
83.82
264.6o
5,955.93
34.00
1.95,
4.63
3.25
3.50
374.48
7.60
11',501.69
94.08'
43.95
710.00
13.23
30.05
9.96
130.00
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EXCERPTS FROM THE MINUTES OF A MEETING
OF THE CITY COUNCIL OF THE CITY OF FAIR -
HOPE, ALABAMA, HELD ON JANUARY 12, 1959
The City Council of the City of Fairhope, Ala-
bama, met in regular session at the city hall in said
city on January 12, 1959, at 7:30 o'clock, P. M. The
meeting was called to order by E. B. Overton, the Mayor,
and upon roll call the following members of the City
Council were found to be present: Councilmen Charles
F. Belew, Marvin 0. Berglin, Walter 0. Poser, .jQ
Rr . , and Barney L . Shull; absent: -� / -
Mayor Overton presided
as chairman of t e meeting. Marie Moore, the City Clerk,
was also present and acted as clerk of the meeting. The
chairman of the meeting stated that a quorum was present
and declared the meeting open for the transaction of
business. The minutes of the preceding meeting were read
and approved.
The mayor stated to the council that upon check-
ing the minutes of the several meetings of the city council
which were held on September 8, 1958, September 22, 1958,
and November 10, 1958 it was discovered that certain
actions taken by the council at those meetings were omitted
in writing up the minutes and it would be appropriate for
the council to consider authorizing the correction of
those minutes so that they will correctly reflect the
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actions that were taken at said meetings The several
omissions were then discussed by the various members
of the council, all of whom were members of the council
and present at each of the said meetings so that they
each had knowledge of the actions which were taken thereat.
After such discussion the fo lowing resolution was in-
troduced by Councilman and read
to the meeting:
BE IT RESOLVED by the City Council of the City
of Fairhope, Alabama as follows:
(1) That portion of the minutes of the regular
meeting of said city council held on September 8, 1958 which
readsas follows shallbe and the same is hereby ordered
struck in its entirety by the city clerk so that the same
shall not appear as a part of said meeting:
Motion by Councilman Ruffles seconded by Council-
man Shull that Section 9 of Ordinance Number 254
adopted on the 14th day of July, 1958, and
amended on the 31st day of July, 1958 be and the
same is hereby amended to read as follows:
SECTION 9: That the City Council of the
City of Fairhope, Alabama, meet at 7:00 o'clock
P.M. on the 22nd day of September, 1958, at
the City Hall for the purpose of hearing, and
at which time it will hear, any objections or
remonstrances that may be made as to the street
improvement, the manner of making the same, or
the character of materials to be used.
(2) In lieu of the said portion of the said
minutes so ordered struck in paragraph (1) of this resolution,
the city clerk is hereby ordered and directed to incorporate
in the minutes of the said meeting the following phraseology
which the council does hereby find correctly reflects the
action taken at the said meeting:
"The following ordinance was introduced by
Councilman Ruffles and was read to the meeting:
BE IT ORDAINED by the City Council of the
City of Fairhope, Alabama as follows:
Section 9 of Ordinance No. 254 of said
city thigh was adopted by the city council
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of said city on July 14, 1958, as the same
was heretofore amended by an ordinance adopted
by the city council of said city on July 31,
1958, be and the same hereby is further amended
so that the said section shall read in its
entirety as follows:
'Section 9. That the city council of
the City of Fairhope, Alabama meet at 7:00
o'clock, P. M. on the 22nd day of September,
1958, at the city hall, for the purpose of
hearing, and at which time it will hear any
objections or remonstrances that may be made
as to the street improvement, the manner of
making the same, or the character of materials
to be used.'
Councilman Ruffles moved that the foregoing ordi-
nance be adopted, which motion was seconded by
Councilman Shull, and upon the motion being put
to vote the following vote was recorded: Yeas:
Mayor Overton and Councilmen Belew, Berglin,
Poser, Ruffles, and Shull; and the following
voted Nay: None. The mayor thereupon declared
that the motion for the adoption of the said
ordinance had been unanimously carried and the
ordinance duly adopted."
Councilman (__Smoved that the foregoing
resolution be adop ed,which motion was seconded by
Councilman _(J and upon the motion being
put to vote the following vote was recorded: Yeas:
Mayor Overton and Councilmen Belew, Berglin, Poser,
and Shull; Nays: None. The mayor thereupon
announced that the motion for the adoption of the said
resolution had been unanimously carried and the said
resolution duly adopted,whereupon he instructed the city
clerk to make the correction in the minutes of the meeting
held on September 8, 1958 as provided in the said resolution.
Councilman then introduced
the following resolution which was read to the meeting:
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BE IT RESOLVED by the City Council of the City
of :,Wairhope, Alabama as follows:
(1) That portion of the minutes of the regular
meeting of said city council held on September 22, 1958
which readsas follows shall be and the same is hereby ordered
struck in its entirety by the city clerk so that the same
shall not appear as a part of said meeting:
This being the day and time set for hear-
ing and considering protest in the matter of
street improvements under Ordinance Number
254, adopted on the loth day of July, 1958,
and the City Council having called such matter
for consideration and protests having been
filed with this council, this council is of
the opinion that further consideration should
be given to such matter;
NOW THEREFORE, BE IT RESOLVED that Council-
man William Ruffles and B. L. Shull and C. B.
Niemeyer, City Manager, be and they are hereby
appointed a committee to consider the question
of making the improvements under the said ordi-
nance and to report their recommendation to
this council at its next regular meeting to
be held October 13, 1958, and the further
consideration of this matter is continued
to the said next regular meeting.
(2) In lieu of the said portion of the said
minutesso ordered struck in paragraph (1) of this resolu-
tion, the city clerk is hereby ordered and directed to
incorporate in the minutes of the said meeting the follow-
ing phraseology which the council does hereby find cor-
rectly reflects the action taken at the said meeting:
"Councilman Shull introduced the
following resolution which was read to the
meeting:
WHEREAS, this being the day and time set
for hearing and considering protest in the
matter of street improvements under Ordinance
Number 254, adopted on the loth day of July,
1958, and the City Council having called
such matter for consideration and protests
having been filed with this council, this
council is of the opinion that further con-
sideration should be given to such matter;
NOW THEREFORE, BE IT RESOLVED that
Councilmen William Ruffles and B. L. Shull
and C. B. Niemeyer, City Manager, be and
they are hereby appointed a committee to
consider the question of making the improve-
ments under the said ordinance and to report
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their recommendation to this council at its
next regular meeting to be held October 13,
1958, and the further consideration of this
matter is continued to the said next regular
meeting.
Councilman Shull moved that the foregoing
resolution together with the preamble there-
to be adopted, which motion was seconded by
Councilman Belew, and upon vote being taken
thereon the following vote was recorded:
Yeas: Mayor Overton and Councilmen Belew,
Berglin, Poser, Ruffles, and Shull; Nays:
None. The mayor thereupon announced that
the motion for the adoption of the foregoing
resolution had been unanimously carried and
the said resolution was duly adopted."
Councilman moved that the foregoing
resolution be adopt( ,which motion was seconded by
Councilman J and upon the motion being
put to vote the following vote was recorded: Yeas:
Mayor Overton and Councilmen Belew, Berglin, Poser,
RSA and Shull; Nays: None. The mayor thereupon
announced that the motion for the adoption of the said
resolution had been unanimously carried and the said
resolution duly adopted, whereupon he instructed the city
clerk to make the correction in the minutes of the meeting
held on September 22, 1958 as provided in the said resolution.
Councilman, ra d.1SrS�_r then introduced
the following resolution which was read to the meeting:
BE IT RESOLVED by the City Council of the City
of Fairhope, Alabama that the City Clerk is hereby ordered
and directed to correct the minutes of the meeting of this
city council held on November 10, 1958 so as to insert
therein, immediately following that paragraph appearing
therein showing that all objections to improvements of
streets as provided in Ordinance No. 254 were overruled,
the following additional phraseology which the council
does hereby find correctly reflects the action taken
at said meeting:
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"Councilman Poser then introduced the
following resolution which was read to the
meeting:
BE IT RESOLVED by the City Council of
the City of Fairhope, Alabama that Ordinance
No. 254, as the same has heretofore been
amended, be and the same is hereby confirmed.
Councilman Poser then moved that the said
resolution be adopted,which motion was
seconded by Councilman Berglin, and upon
vote being taken thereon the following vote
was recorded: Yeas: Mayor Overton and
Councilmen Belew, Berglin, Poser, Ruffles,
and Shull; Nays: None. The mayor thereupon
announced that the motion for the adoption
of the said resolution had been unanimously
carried and the said resolution was duly
adopted."
Councilman Lc.cc moved that the foregoing
resolution be adopted, which motion was seconded by
Councilman and upon the motion being
put to vote the foll wing vote was recorded: Yeas:
Mayor Overton and Councilmen Belew, Berglin, Poser,
R and Shull; Nays: None. The mayor thereupon
announced that the motion for the adoption of the said
resolution had been unanimously carried and the said
resolution duly adopted,whereupon he instructed the city
clerk to make the correction in the minutes of the meeting
held on November 10, 1958 as provided in the said resolution.
There being no further business to come before
the meeting it was moved, seconded and unanimously adopted
that the meeting adjourn. aee — �4 7" � �,
Mayor
City Clerk
- 1 -
EXCERPTS FROM THE MINUTES OF A MEETING
OF THE CITY COUNCIL OF THE CITY OF FAIR -
HOPE, ALABAMA, HELD ON JANUARY 12, 1959
The City Council of the City of Fairhope, Ala-
bama, met in regular session at the city hall in said
city on January 12, 1959, at 7:30 o'clock, P. M. The
meeting was called to order by E. B. Overton, the Mayor,
and upon roll call the following members of the City
Council were found to be present: Councilmen Charles
F. Belew, Marvin 0. Berglin, Walter 0. Poser, U�w. It.
Rom-, 4=. , and Barney L. Shull; absent
Mayor Overton presided
as chairman of the meeting. Marie Moore, the City Clerk,
was also present and acted as clerk of the meeting. The
chairman of the meeting stated that a quorum was present
and declared the meeting open for the transaction of
business. The minutes of the preceding meeting were read
and approved.
The mayor reported to the council that pursuant
to the provisions of Resolution No. 100 adopted by the
council on December 2, 1958 he had accepted in behalf
of the city from The Water Works and Sewer Board of the
City of Fairhope delivery of a deed and bill of sale
dated December 3, 1958 whereby there was conveyed to
the city the water works and sanitary sewer system there-
tofore owned by the said board, and that the said deed
and bill of sale was duly filed for record in the office
of the Judge of Probate of Baldwin County on Decoweber 4,
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1958. He further reported that pursuant to the au-
thorization contained in the said Resolution No. 100
there was contained in the said deed and bill of sale
the agreement on the part of the city set out in the
said resolution and he had executed the said deed and
bill of sale and delivered the same in behalf of the
city, and the seal of the city had been affixed thereto
and attested by the city clerk. He further announced
that pursuant to the authority so to do contained in
Resolution No. 101 adopted by the council at its said
meeting held on December 2, 1958 the city had borrowed
from Watkins, Morrow & Co. the sum of $210,000 for the
purpose of raising funds with which to pay the cost of
constructing improvements and extensions to the said
water works and sanitary sewer system acquired by the
city and that the warrant which was authorized in said
Resolution No. 101 was executed, sealed, attested and
registered as therein provided and delivered to the
said Watkins, Morrow & Co. in evidence of the sum so
borrowed. He further stated that in order to provide
for the orderly payment of the indebtedness of the city
evidenced by the said warrant it would be appropriate
for the council to consider the refunding thereof by
the issuance of refunding warrants of the city payable
solely out of the same revenues from which the said
warrant is made payable to be payable in installments
over a period of years in an orderly manner within the
ability of the city to meet such payments. After con-
sideration of the matter Councilman �f
introduced the following ordinance which was read to the
meeting:
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ORDINANCE NO. �
AN ORDINANCE TO PROVIDE FOR THE ISSUANCE
OF $210,000 PRINCIPAL AMOUNT OF WATER,
SEWER AND GAS REVENUE REFUNDING WARRANTS,
SERIES 1958, OF THE CITY FOR THE PURPOSE
OF REFUNDING A LIKE PRINCIPAL AMOUNT OF AN
OUTSTANDING WARRANT OF THE CITY, AND
PROVIDING FOR A PLEDGE OF REVENUES AND
MORTGAGE AND DEED OF TRUST AS SECURITY
THEREFOR
BE IT ORDAINED by the Mayor and City Council
(herein :together called "the council") of the City of
Fairhope (herein called "the city") in the State of
Alabama as follows:
(1) Authorization of the Warrants. Pursuant
to the authority contained in Section 253 of Title 37
of the Code of Alabama of 1940, and for the purpose
of refunding the outstanding Water, Sewer and Gas
Revenue Warrant of the city in the principal amount of
$210,000 which was heretofore issued by the city under
the authority of a resolution adopted by the city council
of the city on December 2, 1958, there are hereby authorized
to be issued by the city its Water, Sewer and Gas Revenue
Refunding Warrants, Series 1958, to be dated December 1,
1958 (herein called "the warrants") in the aggregate
principal amount of $210,000, shall bear interest evi-
denced by semiannual interest coupons (herein called
"the coupons") and shall contain the provisions as is
set forth in the indenture (herein called "the indenture")
referred to in Section (4) of this ordinance.
(2) Source of Payment of the Warrants. The
principal of and interest on the warrants and the coupons
shall be payable solely from the revenues derived from
the operation of the city's water, sewer and gas systems
as presently or hereafter constituted (herein called
"the systems") including all additions thereto and ex-
tensions thereof which may herPaffPr ho mnH= mhc
faith and credit of the
ment of the warrants or
be general obligations
nance nor any of the wa
deemed to impose upon t
the principal of or the
the coupons except with
tion of the systems as
shall not constitute an
the meaning of any stat
statutory limitation.
tions or warranties mad
or in the indenture or
city are not pledged to the pay -
the coupons, and they shall not
)f the city. Neither this ordi-
?rants or the coupons shall be
ie city any obligation to pay
interest on tie warrants or
moneys derived from the opera-
)rovided in the indenture, and
indebtedness of the city within
constitutional provision or
tone of the agreements, representa-
or implied in this ordinance
.n the issuance of the tr±arrnnf-e
1
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or the coupons shall ever impose any personal, pecuniary
or general liability or charge upon the city, whether
before or after any breach by the city of any such agree-
ment, representation or warranty by the city, except with
the moneys as specified in the indenture. Nothing con-
tained in this section, however, shall relieve the city
or its officers from the performance of the several
agreements and representations on the part of the city
contained in this ordinance so long as such performance
does not impose a personal, pecuniary or general liability
or charge upon the city.
( } Payment at Par. All remittances of prin-
cipal of and -interest on the warrants and the coupons
to the holders thereof shall be made at par without
any deduction for exchange or other costs, fees or ex-
penses. The bank at which the warrants and the coupons
shall at any time be payable shall be considered, by
acceptance of its duties hereunder, to have agreed that
it will make or cause to be made, out of the moneys
supplied to it for that purpose, remittances of the
principal of and interest on the warrants and the coupons
to the holders thereof in bankable funds at par without
any deduction for exchange or other costs, fees or ex-
penses. The city will pay to such bank all reasonable
charges made and"expenses incurred by it in making such
remittances in bankable funds at par.
(4) Authorization of the Indenture and the
Pledges therein Contained. As security for payment of
the principal of and interest on the warrants, pro rata
and without preference or priority of one over another,
the mayor of the city is hereby authorized and directed
to execute the indenture, in the name and behalf of the
city, covering all properties of any kind whatsoever
now or hereafter constituting the systems and all ex-
tensions thereof and additions thereto hereafter made,
and the city clerk is hereby authorized and directed to
affix to the indenture and attest the corporate seal
of the city. The indenture shall be in the form attached
as Exhibit "A" to the minutes of the meeting at which
this ordinance is adopted, which form is hereby adopted
in all respects as if set out in full in this ordinance.
All of the provisions contained in the indenture, in-
cluding specifically, but without limiting the generality
of the said all inclusive term, the pledge of revenues
from the operation of the systems contained in the in-
denture and the agreements contained in the indenture
respecting the pledge and application of revenues from
the operation of the systems are hereby adopted as a
part of this ordinance.
(5) Sale of the Warrants. The warrants are
hereby sold to Watkins, Morrow & Co. at a purchase price
equal to 97-1/2% of the face value thereof plus accrued
interest thereon from their date to the date of their
- 5 -
delivery, the said sale price being hereby ascertained
and declared to be the best offer made for the warrants
which the city has received therefor. The warrants
shall be issued in the name of Hugh Morrow,III, the
nominee designated by the purchaser for that purpose.
The mayor of the city is hereby authorized and directed,
upon payment to the city of the said purchase price of
the warrants, to deliver the indenture and the warrants
to The Merchants National Bank of Mobile, the trustee
under the indenture, and to order and direct the said
trustee to certify the warrants and deliver them, to-
gether with all interest coupons applicable thereto,
to the said purchaser.
(6) Severability. The provisions of this
ordinance ((including those contained in the indenture)
are hereby declared to be severable and in the event
any court of competent jurisdiction should hold any
such provision to be invalid or unenforceable such
holding shall not invalidate or render unenforceable
any other provision of this ordinance.
Adopted and approved this 12th day of January,
1959.
Uwe - -
Mayor
Authenticated:
1 City Clerld
Councilman Je,),� moved that unanimous
consent be given for immediate consideration of and action
on the said ordinance, which motion was seconded by
Councilman i and upon the said motion
being put to vote the following vote was recorded:
Yeas: Mayor Overton and Councilmen Belew, Berglin, Poser,
and Shull; Nays: None. The mayor thereupon
declared that the motion for unanimous consent for
immediate consideration of and action on said rdinance
had been unanimously carried. Councilman
then moved that the said ordinance be finally adopted,
which motion was seconded by Councilman ,,��" ,
and upon the said motion being put to vote the following
vote was recorded: Yeas: Mayor Overton and Councilmen
Belew, Berglin, Poser, and Shull; Nays: None.
The mayor thereupon announced that the motion for adoption
of said ordinance had been unanimously carried and he
thereupon signed the said ordinance in approval thereof.
CouncilmanJcJ then introduced
the following resolution which was 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 as follows:
(1}
is hereby appointed as the dep story for tq Utilities
Systems Revenue Account created in Section 10.2 of the
mortgage and deed of trust from the city to The Merchants
National Bank of Mobile to be dated as of December 1,
1958, which was heretofore authorized by ordinance of
the city adopted on January 12, 1959. Any and all
moneys at any time on deposit in the said Utilities
Systems Revenue Account may be withdrawn by checks,
vouch s drafts si ned in the name of the city by
and countersigned by
and said depository bank
is h reby authbrized unyil further notice to it by a
certified copy of a resolution adopted by the mayor and
city council of the city and delivered to said depository
to honor any such checks, vouchers or drafts when so
signed, regardless of the person or persons to whom the
same may be payable.
Councilman moved that unanimous
consent be given for immediate consideration of and
action on thesaid resolution, which motion was seconded
by Councilman , and upon the said motion
being put to vote the following vote was recorded: Yeas:
Mayor Overton and Councilmen Belew, Berglin, Poser,
and Shull; Nays: None. The mayor thereupon
declared that the motion for unanimous consent for
- 7 -
immediate consideration of and action on said resolution
had been unanimously carried. Councilman
then moved that the said resolution be finally adopted,
which motion was seconded by Councilman c:ao � ,
and upon the said motion being put to vote the following
vote was recorded: Yeas: Mayor Overton and Councilmen
Belew, Berglin, Poser, des and Shull; 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 it was moved, seconded and unanimously adopted
that the meeting adjourn.
Mayor
City Clerk
EXHIBIT
INDENTURE between the CITY OF FAIRHOPE, a
municipal corporation under the laws of Alabama, party
of the first part, and THE MERCHANTS NATIONAL BANK OF
MOBILE, a national banking corporation having its prin-
cipal place of business in the City of Mobile, Alabama,
party of the second part,
W I T N E S S E T H:
In consideration of the respective agreements
herein contained, it is hereby agreed between the parties
signatory hereto and the holders of all securities which
may be issued hereunder (the holders of the said securitiep
evidencing their consent hereto by their acceptance of the
said securities and the parties signatory hereto evidencing
their consent hereto by their execution hereof), each with
each of the others, as follows (provided, that in the per-
formance of any of the agreements of the party of the first
part herein contained any obligation it may thereby incur
for the payment of money shall not be a general debt on its
part but shall be payable solely out of the revenues from
the systems hereinafter referred to):
ARTICLE I
DEFINITIONS
Section 1.1 The following words and phrases
and others evidently intended as the equivalent thereof
shall, in the absence of clear implication herein other-
wise, be given the following respective interpretations
herein:
"The city" means the party of the first part
hereto and, subject to the provisions of Section 12.8
hereof, includes its successors in title and assigns
and any corporation resulting from or surviving any
consolidation or merger to which it or its successors
may be a party.
"Council" means the governing body of the
city as from time to time constituted.
"Resolution" and "ordinance" mean a resolution
or ordinance duly adopted by the council, and, where re-
quired by law, approved by the chief executive officer
of the city.
"The board" means The Water Works and Sewer
Board of the City of Fairhope, a public corporation or-
ganized under the laws of Alabama.
"The securities" means those issued under this
indenture and any supplemental indenture.
"Coupons" means the interest coupons attached
to the securities and evidencing the interest thereon.
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"Interest payment date" means any June 1 or
December 1.
"Trustee" means the party of the second part
hereto and its successors and any corporation resulting
from or surviving any consolidation or merger to which
it or its successors may be a party.
"Outstanding warrant" means the Water, Sewer
and Gas Revenue Warrant of the City dated December ,
1958, in the principal amount of $210,000, referred to
in Section 2.4 hereof.
"Series 1958 warrants" means those of the secu-
rities described in Article VII hereof.
"Additional securities" means those of the secu-
rities issued subsequent to the issuance of the Series
1958 warrants.
"Temporary securities" means bonds, warrants,
notes, certificates or any other evidence of obligation
issued by the city in anticipation of being subsequently
refunded by the issuance of additional securities under
the provisions of Article VIII hereof.
"Callable securities" means those of the securi-
ties which under the terms thereof may be redeemed at the
option of the board prior to their respective maturities.
"Redemption date" means the date fixed for the
redemption of callable securities in any published notice
of redemption.
"Redemption price" means the price at which call-
able securities called for redemption may be redeemed on
the redemption date.
"Holder" when used in conjunction with securities
or coupons means the person in possession and the apparent
owner of the designated item.
"Water and sewer system" means the combined water
system and sanitary sewer system of the city, together with
all subsequent extensions thereof and improvements thereto,
and includes all properties and rights of every kind per-
taining thereto which are described or referred to or in-
tended so to be in the granting clauses hereof (including
the after -acquired property clauses hereof).
"Gas system" means the natural gas distribution
system of the city together with all subsequent extensions
thereof and additions thereto, and includes all property
and rights of every kind pertaining thereto which are de-
scribed or referred to or intended so to be in the granting
clauses hereof (including the after -acquired property
clauses hereof) .
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"The systems" means the water andsewer system
and the gas system.
"This indenture" means these presents and every
supplemental agreement with the trustee in pursuance here-
of.
"Supplemental indenture" means an agreement sup-
plemental hereto.
"The 1934 water and sewer bonds" means the Water-
works and Sewerage System Revenue Bonds of the city dated
July 1, 1934.
"The 1950 water and sewer bonds" means the Mort-
gage Water and Sewer Revenue Bonds of the board dated July
1, 1950 which were issued pursuant to a resolution adopted
by the directors of the board on August 28, 1950.
"The 1950 water and sewer indenture" means the in-
denture of mortgage and deed of trust between the board and
The Merchants National Bank of Mobile dated July 1, 1950
executed as security for the 1950 water and sewer bonds.
"The 1953 water and sewer bonds" means the Water
and Sewer Revenue Bonds, Second Series, of the board dated
July 1, 1953 which were issued pursuant to the provisions
of a resolution adopted by the directors of the board on
December 9, 1953.
"The 1953 water and sewer indenture" means the
indenture of mortgage and deed of trust between the board
and The Merchants National Bank of Mobile dated as of
July 1, 1953 executed as security for the 1953 water and
sewer bonds.
"Gas bonds" means the First Mortgage Gas Revenue
Bonds of the city dated February 1, 1950 issued pursuant
to the provisions of Ordinance No. 197 of the city adopted
by the council on January 23, 1950.
"The gas indenture" means the indenture of mort-
gage and deed of trust between the city and The Merchants
National Bank of Mobile dated as of February 1, 1950.
"The underlying indentures" means the 1950 water
and sewer indenture, the 1953 water and sewer indenture,
and the 1950 gas indenture.
"Underlying bonds" means the 1934 water and
sewer bonds, the 1950 water and sewer bonds, the 1953
water and sewer bonds, and the gas bonds.
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"Independent engineer" means an engineer who is
duly registered and qualified to practice the profession of
engineering under the laws of Alabama and who is engaged in
private practice as a consulting engineer.
"Independent auditor" means a certified public
accountant (or firm thereof) qualified to practice the pro-
fession of accounting under the laws of Alabama and engaged
in private practice as an accountant.
"Counsel" means an attorney who is duly licensed
to practice before the Supreme Court of Alabama.
"Independent counsel" means an attorney who is duly
licensed to practice before the Supreme Court of Alabama and
who is not regularly employed by the city.
"Excepted encumbrances" means, as of any particular
time, the underlying indentures, liens for ad valorem taxes
not then due, and easements, restrictions and exceptions that
an independent engineer certifies will not interfere with or
impair the operation of the systems.
"Capital improvements" includes improvements,
additions and replacements that are of such nature as to be
chargeable to fixed capital account by good accounting
practice, and real estate on which any such improvements,
additions and replacements are, or are proposed to be,
located.
"Operating expenses" means, for the applicable period
or periods and the applicable system, the reasonable and neces-
sary expenses of efficiently and economically administering and
operating the applicable system and maintaining it in good re-
pair and in good operating condition (not including, however,
depreciation, payments into any of the special funds created
herein or in any of the underlying indentures, or any expenses
for items properly chargeable by good accounting practice to
fixed capital account), the charges and expenses of the de-
positories for any of the special funds herein created or
created in any of the underlying indentures covering the ap-
plicable system, all charges in connection with payment of the
bonds and the coupons and the underlying bonds or any coupons
applicable to the underlying bonds insofar as they are payable
out of the applicable system, the premiums on all insurance
policies and fidelity bonds carried pursuant to the requirements
of the underlying indentures or the requirements hereof insofar
as they pertain to the applicable system, the expense of making
any audits herein required or required under any of the under-
lying indentures insofar as they pertain to the applicable
system and any other charges herein expressly stated to con-
stitute an operating expense.
"Annual net income" means with respect to any system
the total revenues derived from the operation of that system
during a fiscal year less the total of the operating expenses
applicable to that system during such fiscal year.
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"Construction fund" means the Water and Sewer
System Construction Fund created in Section 9.2 hereof.
"Construction engineer" means the construction
engineer who at the time shall have been designated in or
pursuant to the provisions of Section 9.6 hereof.
"Federal securities" means any securities that
are direct obligations of, or obligations the principal of
and the interest on which are unconditionally guaranteed
by, the United States of America.
"Revenue account" means the Utilities Systems
Revenue Account created in Section 10.2 hereof.
"Principal and interest fund" means the
Utilities Systems Principal and Interest Fund created in
Section 10.3 hereof.
"Reserve fund" means the Utilities Systems Debt
Service Reserve Fund created in Section 10.4 hereof.
"Fiscal year" means the twelve month period begin-
ning on October 1 of one calendar year and ending on Sept-
ember 30 of the following calendar year.
"Newspaper" means a newspaper printed in the
English language and customarily published not less than
six days during each calendar week in the locality specified.
"Herein", "hereby", "hereunder", "hereof", and
other equivalent words refer to this indenture and not solely
to the 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.
Any percentage of bonds is to be figured on the
unpaid principal amount thereof then outstanding.
ARTICbE II
RECITALS AND FINDINGS
BY THE CITY
Section 2.1 Recitals Respecting the Water and
Sewer System -The board- was heretofore the owner of the water
and sewer system which furnishes water and sanitary sewer
service to the citizens of the city. For the purpose of
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acquiring the same and making improvements and extensions
thereto the board heretofore issued and there are now out-
standing the 1950 water and sewer bonds of the board which
are payable solely out of and are secured by an irrevocable
pledge of revenues from the operation of the water and
sewer system and are further secured by the 1950 water and
sewer indenture, and for the purpose of making additional
improvements and extensions to'the water and sewer systems
the board also heretofore issued and there are now outstand-
ing the 1953 water and sewer bonds of the board which like-
wise are payable solely out of and are secured by a pledge
of revenues from the operation of the water and sewer system
and are further secured by the 1953 water and sewer inden-
ture. Both the 1950 water and sewer indenture and the 1953
water and sewer indenture cover all of the properties com-
prising the water and sewer system. The revenues derived
from the operation of the water and sewer system remaining
after complying with the requirements on the part of the
board contained in the 1950 water and sewer indenture and
the 1953 water and sewer indenture will be available for the
purposes provided therefor in this indenture. Because of
the substantial increase in the population of the city and
the number of buildings constructed in the city it will be
necessary, in order to furnish adequate water and sanitary
sewer service to the inhabitants of the city and to safe-
guard the health of said inhabitants, that there be prea-
ently constructed substantial improvements and extensions
to the water and sewer system. The total cost of the im-
provements and extensions so proposed to be constructed is
estimated to be $210,000 and the period of usefulness there-
of is estimated to be in excess of thirty years from the
date hereof. The city is interested in seeing that the
said improvements and extensions be made, and in order to
enable such to be done it has acquired title to all of the
properties comprising the water and sewer system.
Section 2.2 Recitals Respecting the teas
System. The city is the owner of the gas system through
which it distributes natural gas to its customers located
both within and outside the city. The city heretofore
issued and there are now outstanding the gas bonds which
are payable solely out of and are secured by an irrevocable
pledge of revenues derived from the operation of the gas
system and are further secured by the gas indenture. The
revenues derived from the operation of the gas system re-
maining after complying with the requirements on the part
of the city contained in the gas indenture will be avail-
able for the purposes provided therefor in this indenture.
Section 2.3
incorporated as a municipal corporation under the laws c
Alabama and has corporate power to sell and issue the
securities and to execute this indenture as security
therefor. To secure payment of the principal of and the
interest on all securities that may be issued hereunder
the city has by proper corporate action duly authorized
the execution and delivery of this indenture. By proper
y
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corporate action the city has duly authorized the issuance
of the Series 1958 warrants.
Section 2.4 Recitals Respecting the Outstanding
Warrant. For the purpose of raising funds with which to pay
the costs to be incurred in making the said improvements and
extensions to the water and sewer system, the city has here-
tofore issued its Water, Sewer and Gas Revenue Warrant in the
principal amount of $210,000 pursuant to authorization so to
do adopted by the council on December 2, 1958, which warrant
is now outstanding and unpaid. The outstanding warrant was
duly executed by the mayor of the city and the seal of the
city was affixed thereto and attested in the manner required
by law and constitutes a valid obligation of the city payable
solely out of the revenues from the system.
ARTICLE III
GRANTING CLAUSES
Section 3.1 Conveyance to the Trustee. In order
to secure to the holders thereof payment of t e principal
of and interest on the securities and the coupons respec-
tively applicable thereto and the performance and observance
of the covenants and conditions therein and herein contained,
and in consideration of their purchase and acceptance of the
Series 1958 warrants and of any additional securities which
might be hereafter issued pursuant to the provisions hereof
and of the acceptance by the trustee of the trusts herein
provided, the city does hereby grant, bargain, sell and con-
vey, assign, transfer and pledge to and with the trustees
the following described properties of the city, whether the
same are now owned by it or may be hereafter acquired:
The Water and Sewer.SYstem
The entire water system and sanitary sewer
system of the city situated in the city and in the territory
contiguous thereto in Baldwin County, Alabama, including
the wells, pumps and appurtenances thereto, reservoirs,
tanks, pipes, water transmission mains, water distribution
system, meters, hydrants, valves and services in connection
therewith, sanitary sewers, mains, laterals, manholes and
appurtenances thereto, outfall sewers, sewage disposal
plant, lift and pumping station, and all of the cityfs
other properties, real, personal and mixed, tangible or
intangible, forming a part of or appertaining to or used
or acquired for use in connection with the said water
system and sanitary sewer system, whether any of said prop-
erties are now owned by the city or may be hereafter acquired
by it, including particularly, but without limiting the
generality of the language hereinbefore or hereinafter con-
tained, the following described properties located in
Baldwin County, Alabama:
s
(a) Beginning at a point 77 feet East of the South-
west corner and on the South lire of Lot 4, Block 5, Divi-
sion 4, according to plat of the Fairhope Single Tax Cor-
poration property recorded in the office of the Judge of
Probate of Baldwin County, Alabama, in Miscl. Book 1, at
pages 320-21; thence North 36 feet; thence West 19.5 feet;
thence North 96 feet to a point on the North line of Lot
3 in said Block 5; thence East 42.5 feet along the North
line of said Lot 3; thence South 132 feet to the Sough
line of said Lot 4; thence West 23 feet along the South
line of said Lot 4 to the point of beginning;
(b) Beginning at a point 40' feet East and 20 feet
South of the Northwest corner of Lot ll, Block 5, Divi-
sion 4, according to said plat of the Fairhope Single
Tax Corporation property; thence West 14 feet; thence
South 14 feet; thence East 14 feet; thence North 14
feet to the point of beginning;
(c) Starting at the intersection of the center
lines of Bayview Street and Magnolia Avenue in Division
1, according to said plat of the Fairhope Single Tax
Corporation property; thence South 890 West 446.3 feet;
thence South 350 521 West 248 feet; thence North 730
181 West 420.2 feet to a point of beginning; thence from
the point of beginning North 310 421 East 71 feet; thence
South 730 181 East 65 fest; thence South-310 421 West
71 feet; thence North 73 18, West 65 feet to the point
of beginning;
(d) Starting at the Northwest corner of Block 6,
Division 3, according to said plat of the Fairhope
Single Tax Corporation property; thence North 33 feet;
thence East 351 feet along the North line of Section
18, Township 6 South, Range 2 East; thence North 15.5
feet to a point of beginning; thence from the point of
beginning North 850 301 East a distance of 122.5 feet;
thence South 270 East a distance of 61 feet; thence
South 160 West a distance of 67 feet; thence South 730
West a distance of 105.5 feet; thence North 430 West a
distance of 122 feet; thence North 460 East a distance
of 73.2 feet to the point of beginning;
(e) Starting at the Northwest corner of Block 6,
Division 3, according to said plat of the Fairhope Single
Tax Corporation property; thence North 33 feet; thence
East 351 feet; thence North 15.5 feet; thence North 850
301 East a distance of 122.5 feet to a point of begin-
ning; Thence from the point of beginning North 850 301
East a distance of 9.5 feet; thence South 270 East a
distance of 91.5 feet; thence South 60 151 West a
distance of 227 feet; thence South 780 071 West a dis-
tance of 79 feet; thence North 250 151 West a distance
of 290 feet; thence North 460 East a distance of 0.2
feet; thence South 430 East a distance of 122 feet;
thence North 730 East a distance of 105.5 feet; thence
North 160 East a distance of 67 feet; thence North 270
West a distance of 61 feet to the point of beginning;
(f) Starting at the Southwest corner of the
intersection of Beach View Avenue and Pier Street
in the Magnolia Beach Addition, thence running in a
Southwesterly direction along the West side of Beach
View Avenue, 130 feet; thence in a Northwesterly
direction and parallel to the South side of Pier
Street, 30 feet to a point of beginning, thence from
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the point of beginning parallel to the West side
of Beach View Avenue in a Northeasterly direction
25 feet; thence parallel to the South side of Pier
Street and in a Northwesterly direction 25 feet;
thence parallel to the West side of Beach View
Avenue and in a Southwesterly direction 25 feet;
thence parallel to the South side of Pier Street
and in a Southeasterly direction 25 feet to the
point of beginning; all according to plat of the
Magnolia Beach Addition to Fairhope, recorded in
the office of the Judge of Probate of Baldwin
County, Alabama, in Miscl. Book 1, at page 331;
(g) Easements for the installation and main-
tenance of sewers in and under the following lands:
(1) A strip of land 20 feet wide, 10 feet on
each side of a line described as follows: Begin-
ning at a point 80 feet North and 988.6 feet West
of the Northeast corner of Block 26, Division 4,
according to said plat of the Fairhope Single
Tax Corporation property recorded in the office
of the Judge of Probate of Baldwin County in
Miscl. Book 1, at pages 320-21, said point being
on the North line of Fairhope Avenue; thence North
310 391 West a distance of 303.7 feet; thence North
370 521 West a distance of 869 feet; thence North 440
421 West a distance of 605 feet; thence North 180 431
East a distance of 301 feet; thence North 570 57' West
a distance of 392 feet; thence North 570 .24 , West a
distance of 149.6 feet to a point on the East line of
the High School lot; said point on the East line of
the High School lot being described as follows: South
200 West a distance of 361.8 feet from the Southwest
corner of lot 23, Block 12, Volanta, as shown on said
plat, along the East side of Section Street; thence
South 700 East a distance of 695 feet; thence South
934.6 feet to the said point;
(2) A strip of land 20 feet wide, 10 feet on
each side of a line described as follows: Begin-
ning at a point 219.1 feet South of the Northeast
corner of Section 18, Township 6 South, Range 2
East, and on the East line of said Section 18; thence
North 730 471 West a distance of 133 feet; thence
South 700 451 West to a point on the North boundary
line of Bayou Charbon: Also from the above beginning
point South 730 471 East to the West side of Section
Street; All according to said plat of the Fairhope
Single Tax Corporation;
(3) Beginning at a point described as follows:
from the Southwest corner of Lot 23, Block 12, Volanta,
according to said plat of the Fairhope Single Tax
Corporation property; South 200 West a distance of
361.8 feet alon� the East side of Section Street;
thence South 70 East a distance of 695 feet; thence
South a distance of 934.6 feet to said beginning
point: A strip of land 20 feet wide, 10 feet on
each side of a line described as follows: From the
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above beginning point North 570 24, West a dis-
tance of 173.4 feet; thence North 520 54, West a
distance of 280 feet; thence North 640 441 West
a distance of 212 feet; thence North 420 261 West
a distance of 330 feet; thence North 730 471 West
to a point on the East side of Section Street: The
line North 730 471 West if continued for a total
distance of 177.5 feet goes to a point on the East
line of said Section 18, 219.1 feet South of the
Northeast corner of said Section 18;
(4) A strip of land 20 feet wide, 10 feet on
each side of a line described as follows: Starting
at the Northwest corner of Block 6, Division 3,
according to said plat of the Fairhope Single Tax
Corporation property; thence North 33 feet; thence
East 351 feet; thence North 15.5 feet; thence North
850 301 East a distance of 35.5 feet to a point of
beginning: Thence from the point of beginning North
20 201 East a distance of 86.8 feet;
(5) A strip of land 20 feet wide, 10 feet on
each side of a line described as follows: Starting
at the Northwest corner of Block 6, Division 3,
according to said plat of the Fairhope Single Tax
Corporation property; thence North 33 feet; thence
East 351 feet; thence N rth 15.5 feet; thence North
850 301 East a distance of 35.5 feet; thence North
20 201 East a distance of 86.8 feet to a point of
beginning: Thence from the point of beginning North
20 201 East a distance of 112.6 feet; thence North
630 171 West a distance of 178.3 feet; thence North
840 031 West a distance of 300 feet; thence North
740 231 West a distance of 160 feet; thence North
560 171 West a distance of 140 feet; thence North
860 521 West a distance of 250 feet; thence South
860 551 West a distance of 200 feet; thence North
810 501 West a distance of 300 feet more or less
to Mobile Bay, and thence along the same line 200
feet, more or less out into Mobile Bay to existing
crib;
(6) A strip of land 20 feet wide, 10 feet on
each side of a line described as follows: Start at
the Southeast corner, Division 4, according to said
plat of the Fairhope Single Tax Corporation property;
thence East 1266.9 feet along the North side of Morphy
Avenue to a point of beginning: Thence from the point
of beginning North 360 561 West a distance of 361.7
feet; thence North 250 311 West a distance of 153
feet; thence North 490 56, West a distance of 743.6
feet; thence North 220 111 West a distance of 150.1
feet to the South side of Fairhope Avenues;
(7) A strip of land 20 feet wide, 10 feet on
each side of a line described as follows: Start
at the Southeast corner of Block A, Division 4, ac-
cording to,.said plat of the Fairhope Single Tax
Corporation property; thence South 10 feet; thence
East 20 feet to point of beginning: Thence from
point of beginning East 176 feet; thence South 340
feet to North side of Stimpson Street;
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The Gas System
The entire natural gas distribution system of
the city situated in Baldwin County, Alabama, including
odorizing station, regulator or pressure reduction
stations, mains, pipes, regulators, meters, valves,
fittings, and services in connection therewith, and all
of the cityts other properties, real, personal and mixed,
tangible and intangible, forming a part of or appertain-
ing to or used in connection with said gas system, wheth-
er any of said properties are now owned by the city
or may be hereafter acquired, including particularly
but without limiting the generality of the language
hereinbef ore or hereinafter contained, the following
described real estate located in Baldwin County, Ala-
bama:
A parcel of land located in the City of Fair -
hope described as follows: Begin at the Northwest cor-
ner of Lot 11 in Block 5 of Division 4 of the Fairhope
Single Tax Property in the City of Fairhope, Alabama,
run thence South parallel with Bancroft Street a
distance of 30 feet; run thence East parallel with the
Northern line of said lot a distance of 60 feet; run
thence North parallel with Bancroft Street a distance
of 30 feet to the Northern line of said lot; run thence
West along the said Northern line 60 feet to the point
of beginning;
Together with all lands and interests in lands which are
used in the operation of any of the systems and which are
owned by the city, and all franchises, permits, easements,
rights of way, crossing agreements, privileges, immunities
and licenses of the city under and pursuant to which the
city is authorized to engage in the operation of any of
the systems, including particularly that certain franchise
for the operation of a gas system heretofore granted to
the city by ordinance adopted by the Town Council of the
Town of Daphne on January 23, 1950, and that certain gas
supply agreement between United Gas Pipe Line Company and
the city under which natural gas is furnished to the city
for sale and distribution through the gas system;
Also all personal property forming a part of,
and all tolls, rents, revenues, issues, earnings, income
and profits from, the systems;
Also all property,rights and privileges, whether
real or personal and tangible or intangible, which the city
may hereafter acquire as a part of or as an improvement to
or extension of the systems or either of them or of any
extension thereof or addition thereto; it being the in-
tention hereof that all property, rights and privileges
acquired by the city after the date hereof for use as a
part of the systems shall be as fully covered hereby as
if such property, rights and privileges were now owned
by the city and were specifically described herein.
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SAVING AND EXCEPTING from the pro erty hereby
mortgaged and pledged all of the following whether now
owned or hereafter acquired by the city): cash on hand
and on deposit (but moneys or investments in any of the
special funds herein created are not so excepted), ac-
counts and notes receivable, chores in action, customers
service and extension deposits, and water, gas and other
properties acquired for sale in the ordinary course of
business of the city or for consumption in the operation
of the systems.
TO HAVE AND TO HOLD the same unto the trustee,
its successor trustees and assigns, forever; IN TRUST,
NEVERTHELESS, upon the terms and trusts herein set forth
for the equal and pro rata protection and benefit of the
holders, present and future, of the securities and the
coupons equally and ratably, without preference, priority,
or distinction of any over others by reason of priority
in issuance or acquisition or otherwise, as if all of
the securities at any time outstanding had been executed,
sold, certified, delivered and negotiated simultaneously
with the execution and delivery hereof.
PROVIDED, HOWEVER, that these presents are
upon the condition that if the city shall pay or cause
to be paid all securities and coupons secured hereby,
or shall provide for such payment by depositing with the
trustee moneys sufficient for that purpose as provided
for in Section 17.1 hereof, together with any evidence
or instruments required by said section, and shall pay
or cause to be paid all other sums payable hereunder by
it, then this indenture and the estate and rights
granted hereby shall cease, determine and be void;
otherwise this indenture shall be and remain in full
force and effect.
ARTICLE IV
ISSUANCE OF THE SECURITIES IN SERIES
AND GENERAL PROVISIONS THEREFOR
Section 4.1 Issuance of the Securities in
Series. The securities shall be issued in different
series and each series shall have an appropriate series
designation. All of the securities and the coupons
respectively applicable thereto shall be equally and
ratably secured by this indenture.
Section 4.2 Provisions for Forms of the
Securities. The Series 1958 warrants shall be in the form
hereinafter provided therefor. The additional securities
shall be in such forms as may be respectively provided
therefor in the supplemental indenture pursuant to which
they are issued; provided, that none of the provisions
contained in the forms thereof shall conflict with the
provisions of this indenture.
Section 4.3 Dates and Place of Payment of the
Securities. The securities shall be dated on the December
1 or the June 1 next preceding the dates of their respective
issuance and shall mature on December 1 in each of the years
which may be fixed for their maturities. Interest on the
securities from their respective dates until their re-
spective maturities shall be payable semiannually on June
1 and December 1 and shall be evidenced by coupons attach"
ed to the applicable securities. The securities and the
coupons shall be payable in lawful money of the United
States of America at the principal office of the trustee,
and shall bear interest at the rate of 6% per annum after
their respective maturities until paid or until moneys
sufficient for. payment thereof shall have been deposited
for that purpose with the trustee.
ARTICLE V
EXECUTION AND AUTHENTICATION
OF THE SECURITIES
Section 5.1 Execution of the Securities. The
securities and the coupons applicable thereto shall be
executed by such officers of the city as may be required
by law and provided for in the proceedings under which
they are issued, and the seal of the city shall be affixed
thereto. If more than one signature is provided for
execution of any of the securities, such execution may,
if legally permissible, be effected by the impression of
facsimile signatures; provided that at least one signature
on the securities shall be manually inscribed thereon but
no signature on any of the coupons shall be required to be
manually inscribed thereon. Signatures on the securities
and the coupons, whether inscribed manually or impressed
in facsimile, by persons who are officers of the city at
the time such signatures were inscribed or impressed shall
continue effective although such persons cease to be such
officers prior to the certification of such securities or
the delivery thereof .
Section 5.2 Authentication Certificate by the
Trustee. A duly executed authentication certificate by
the trustees shall be endorsed on each of the securities
and shall be essential to its validity. Such certificate
shall be conclusive of the due issue of the securities on
which such certificate is endorsed.
Section 5.3 R_eplacement of Lost, Stolen,
Mutilated or Destroyed Securities or Coupons. In the
event any -of -the securities are mutilated, lost, stolen
or destroyed, the city may execute, and the trustee shall
authenticate and deliver, new securities of like tenor of
those mutilated, lost or destroyed, which new securities
shall have attached thereto coupons corresponding in all
respects to those, if any, on the securities mutilated,
lost, stolen or destroyed; provided, that (a) in the case
of any mutilated securities the same together with all (if
any) appertaining thereto shall first be surrendered to the