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HomeMy WebLinkAbout12-02-1958 Adjourned MeetingIt STATE OF ALABAMA County of Baldwin The City Council, of theCity of Fairhope, Alebcma, met in adjourned regular session at the City Hall in said City on December 2, 1958, at 7:30 o'clock P.M. pursuant to adjournment of regular meeting held on November 21 , 1958. 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: Council-ien Charles F. Belew, Marvin 0. Berglin, Halter 0. Poser, 'NM,. R. Ruffles, Jr. and Barney L. Shull;, absent None. Mayor Overton presided as Chairmen of the meeting, Marie Moore, the City Clerk, was also present and noted 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. Motion by Councilmen Ruffles seconded by Councilman Berglin that the Mayor be authorized to sign contract along with the Water and Sewer Board with Fairhope Paving Company for sewer extensions. Motion carried. Motirin by Councilman Shull seconded by Councilman Berglin that the applica- tion for building permit of ter. Barnes be approved as submitted. Motion carried. Mr. Bain met with the Council in regards to Street Improvements. A letter from the Water and Sewer Board requesting an increase in sewer connection charge was held for further study. C ounciIrran Shull gave a report of the Business Lic ense Committee. Held for next regular meeting of the Council. Parking was discussed but no action taken at this time. r.Moti�n by Councilman Poser seconded by Councilman Belew that the following Resolution be adopted. Motion carried. tiHEREAS, there is on deposit in the Surplus Fund of the Natural Gas /I ` bystern of the City sufficient funds to redeem prior to maturity )20,000.00 princ;pal amount of Natural Gas Revenue 3 31V. Bonds, and WHEREAS, it is necessary for bondholders to be notified not less than 30 days prior to the redemption date. + NO" J THERE=ORE BE IT RESOLVED: I. That the City hereby elects to redeem from Surplus Revenues on hand Bonds Nos. 601/603 inclusive maturing February I, 1977 and Bonds Nos. ,, 5e;4/600 inclusive maturing February I, 1976, at par plus accrued interest plus a oremium of one year's interest. 2. That the tructee be and is h,-reby instructed to pay such bonds when pr-sented with funds out of the Surplus Fund of the Natural Gas System. 3. That Viatkins, Morrow and C o-r?any be aithorized to negotiate with the bondholders in an attempi to save the cost of puslish'nc, a notice of redemption but that if such notice musl- be published, that said i7etkins, mr)rrow and C o,ipany, be and is hereby authorized to publish an appropriate notice of redemption in accordance with the terms of the authorizing ordinance. It was reported that Conald Mills, the engineer who had been engaged for the purNose of making a survey of the needed improvements and extensions to the combined water and sewer system now serving the city, had made a report wh',ch showed that improverr-nts and extensions are necessary to be made at an estimated cost of '2 1,,000 in order for the said system to render reason- ably adegiated water and sewer service to the inhabitants of the city. It was also pointed out that the s,) i d s\'tstem i presently owned by the Na ter "forks and Sewer Board of the Cit•, -f Fairhope, a public corporation, and that the said corpora- j -2 - action does not have funds sufficient to pay for the cost of constructing the said improvements and extensions and the revenues derived from the operation of the said system available for said purpose, after complying with the re- quirements for the outstanding bonds heretofore issued by the said corporation, are not by themselves sufficient to finance an additional issue of bonds by the said board in an amount necessary to pay the cost of constructing the said improvements and extensions. It was also pointed out that if the city would acquire title to the said system from the said corporation and assume the obligations of the said corporation payable solely out of the revenues derived from the said system, the city could utilize the available revenues therefrom together with other revenues available to the city from the natural gas distribution system owned by the city and finance the construction of the said improvements and extensions. The chairman stated that the members of the board of directors of the said cor- poration had indicated they would be willing to transfer the said water and sewer system to the city in order to enable the city to make the said improvements and exten- sions thereto. After discussion of the problems involved the following resolution was introduced by Councilman -,.L- and read to the meeting - RESOLUTION NO. / G c> BE IT RESOLVED by the Mayor and City Council of the City of Fairhope (herein called "the city") as follows: (1) There is hereby authorized to be purchased by the city from The Water Works and Sewer Board of the City of Fairhope, a public corporation under the laws of Alabama (herein called "the board"), the entire water and -3- sanitary sewer system (herein called "the system") now owned by the board, together with all assets forming a part of the system or incidental thereto, and in consideration therefor the city shall assume and agree to pay all obligations on the part of the board heretofore made by the board, includ- ing specifically the agreements on the part of the board contained in that certain mortgage and deed of trust between the board and The Merchants National Bank of Mobile dated as of July 1, 1950 which was executed as security for the Mortgage Water and Sewer Revenue Bonds of the board dated July 1, 1950, and also the agreements on the part of the board contained in that certain mortgage and deed of trust between the board and the said The Merchants National Bank of Mobile dated as of July 1, 1953 which was executed as security for the Water and Sewer Revenue Bonds, Second Series, of the board dated July 1, 1953, which assumptions on the part of the city shall be limited to and payable solely out of the revenues derived from the operation of the system. (2) The Mayor of the city is hereby authorized to accept in behalf of the city delivery from the board of an appropriate deed and bill of sale conveying to the city the system and all assets forming a part thereof or inci- dental thereto, and is further authorized to execute and deliver in the name of and in behalf of the city such document or documents as he may deem necessary to evidence the aforesaid assumption by the city, to which the city clerk is hereby authorized to affix and attest the seal of the city, the execution of such document or documents by the mayor being evidence of his determination as to the necessity thereof. Adopted and approved this 2nd day of December, 1958. Attest: 1 01 Mayor City C1e CouncilmanN---) -- a _ moved that unanimous consent be given for immediate consideration of and action on the said 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, Ruffles and Shull; Nays: None. The mayor thereupon de- clared that the motion for unanimous consent for 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 and upon the said motion being put to vote 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 adoption of said resolution had been unanimously carried and he thereupon signed the said resolution in approval thereof. Discussion was had of the need to raise funds to pay the cost of making the proposed improvements and extensions to the water and sanitary sewer system in the city when title thereto shall have been acquired by the city. After such discussion it was determined that it would be desirable for the city to borrow at this time the sum of $210,000 temporarily, and at a suitable time hereafter refund the same in permanent form. Councilman -aj then introduced the following resolution which was read to the meeting: RESOLUTION NO. fd Z A RESOLUTION AUTHORIZING THE BORROWING OF $210,000 FOR THE PURPOSE OF RAISING FUNDS WITH WHICH TO CONSTRUCT IMPROVEMENTS AND EXTENSIONS TO THE COMBINED WATER AND SAN- TARY SEWER SYSTEM OF THE CITY BE IT RESOLVED by the Mayor and City Council of the City of Fairhope, Alabama, as follows: -5- Section 1. Findings. The mayor and the city council (herein together called "the council") of the City of Fairhope (herein called "the city") in the State of Alabama has ascertained and does hereby declare that the following statements are true: because of the sub- stantial increase in the population of the city and of the number of buildings constructed therein it will be necessary, in order to furnish adequate water and san- itary sewer service to the inhabitants of the city and to safeguard the health of said inhabitants, that there be presently constructed substantial improvements and exten- sions to the water and sanitary sewer system presently serving the city. The total cost of the improvements and extensions so proposed to be constructed is hereby estimated to be $210,000 and the period of usefulness thereof is here- by estimated to be in excess of thirty years. The city pro- poses to acquire title to the said water and sanitary sewer system and contemporaneously with the acquisition of such title to issue its warrant hereinafter authorized in order to raise the funds necessary to enable the said improvements and extensions to be made. Section 2. Authorization of Warrant. Pursuant to the applicable provisions of the constitution and laws of the State of Alabama, including particularly Sections 465 and 466 of Title 37 of the Code of Alabama of 1940, and for the purpose of raising funds with which to pay the cost of constructing improvements and extensions to the water and sanitary sewer system to be acquired by the city, there is hereby authorized to be issued to Watkins, Morrow & Co. one Water, Sewer and Gas Revenue Warrant (herein called "the warrant") of the city in the principal sum of $210,000. The warrant shall be dated the date on which it`.shall be delivered to and paid for by the said Watkins, Morrow & Co., shall be payable at the expiration of ninety days after its date, shall bear interest from its date until its maturity at the rate of 4-1/2% per annum payable at its maturity, and shall be payable, both as to principal and interest, solely out of the revenues that will be derived from the operation of the said water and sanitary sewer system located in the city (the title to which will be acquired by the city contemporaneously with the issuance of the war- rant) and from the natural gas distribution system now owned by the city. Section 3. Optional Prepayment Privilege. The city reserves and shall have the privilege of paying the warrant at any time prior to its maturity by paying to the holder thereof the face amount of the warrant plus the in- terest which shall have accrued thereon to the date of such prepayment. No notice shall be required to be given to the holder of the warrant and no premium shall be required to be paid on the amount so prepaid in order to effect such prepayment. Section 4. Execution of the Warrant. The war- rant shall be executed and the corporate seal of the city shall be affixed thereto by the mayor of the city, and the -6- city clerk shall attest the same by affixing her signature thereto. The warrant shall be registered in the records maintained by the city treasurer as a claim against the revenues of the city out of which it is made payable. Said officers are hereby authorized and directed so to execute and attest the warrant and affix said seal thereto and to make such registration. Section 5. Source of Payment and Pledge of Revenues. The principal of and interest on the warrant shall be payable solely out of the revenues derived from the op- eration of (a) the water and sanitary sewer system of the city the title to which will be acquired by the city con- temporaneously with the issuance of the warrant, and (b) the natural gas distribution system now owned by the city. The revenues from the operation of the said water and sani- tary sewer system and said natural gas distribution system which will accrue or become due within one year from the date of the warrant are hereby pledged, to the extent necessary for such purpose, for payment of the principal of and interest on the warrant, which pledge shall be sub- ject only to the prior pledges heretofore made of said revenues for any outstanding securities previously issued for which said revenues or any part thereof were heretofore pledged. Section 6. Form of the Warrant. The warrant shall be in substantially the following form: -7 - $2100000 (Form of Warrant) UNITED STATES OP AMERICA STATE OF ALABAMA CITY OF FAIRMOPE WATER, SEWHR AND GAS REVENUE WARRANT $210,000 Ninety days after the date hereof the City Treas- urer of the City of Fairhope (herein called "the city"}. a municipal corporation in the State of Alabama, ie hereby ordered to pay to Watkins, Morrow & Co., or its assigns, solely out of the revenues hereinafter referred to, the, principal sum of with interest thereon from the date hereof until the maturit hereof at the rate of 4-1/0 per annum, payable at the maturity hereof. Both the principal hereof and interest hereon shall be, payable at the principal office of The Merchants National Bank of Mobile, in the City of Mobile in the State of Alabama. The city reserves the privilege of paying all or any part of the principal of this warrant at any time prior to its maturity by paying the interest which shall have accrued on this warrant to the data of such "prepayment and the. principal so prepaid,, without penalty or prior notice. The principal of and interest on this warrant are payable solely out of the revenues that will be derived from the operation by the city of the stater and ganitar §ewer system and the natural gas distribution system botg of which upon the issuance of this warrant will be owned by the city. The said revenues are hereby irrevocably pledged, to the ex- tent necessary For such purpose and to the extent authorized by law, for payment of the principal of and interest on this warrant, and the city agrees that it will segregate the said revenues and deposit them in a special fund separate and apart from all other revenues of the city.. This warrant has been,issued pursuant to the opµ pllcable provisions of the constitution and lags of the State of Alabama, including particularly Sections 465 and 466 of Title 37 of the Code of Alabama of 1940s and a resolution duly adopted by the governing body of the city for the purpose of raiding funds to pay the cost of con- structing improvements and extensions to the said water and sanitary sewer system* it is hereby certified that the obligation evi- denced hereby has been duly and legally incurred and will at the maturity orreof offset�of®lawfulldue any description;tandtthatdall tion, abatement 10 conditions, actions and things required by the constitution and laws of the State of Alabama to exist, be performed or happen precedent to and In the issuance of this warrant exist, have been performed and have happened. IN WITNESS WHEREOF, the city has Caused this warrant to be executed and its official seal to be here- unto affixed by its mayor and has caused the same to be attested by its city clerk, both of whom have hereunto subscribed their signatures, and has caused this warrant to be dated Ilecember 1958. Atteett CITY OF FAIRHOFR ey Mayor City Clerk ( Form of t�RTIVICATE gZ MaTRATION) I hereby certify that this warrant was at the time of issuance thereof duly registered by me as a claim against the City of Fairhope in the State of Alabama, payable solely out of the revenues from the operation of the water and san- itary sewer system and the natural gas distribution system of said city. City Treasurer of the City of Fairhope, Alabama (Form of ASSIO ) The within warrant and the indebtedness thereby ordered paid are hereby transferred and assigned, without recourse or warranty, to -9 - Section 7. Sale of the Warrant and Disposition of Proceeds. The warrant is hereby sold to Watkins, Morrow & Co. at and for the purchase price equal the face value thereof. The city treasurer is hereby authorized and di- rected to deliver the warrant, when executed, sealed, at- tested and registered as herein provided, at any time upon payment to the city of the principal amount of the warrant. The proceeds of the warrant shall be used solely for the purpose for which the warrant was authorized to be issued. Adopted and approved this 2nd day of December, 1958. Attest: Mayor City Clerk Councilman moved that unanimous consent be given for immediate consideration of and action on, said id resolution, which motion was seconded by Councilman -�Q�c-cl and upon the said motion being put to vote the following vote was recorded: Yeas: Mayor Overton and Councilmen Belew, Berglin, Poser, Ruffles and Shull; Nays: None. The mayor thereupon de- clared that the motion for unanimous consent for immediate consideration of and action on said resolution had been unanimously carried. Councilman then moved that the said resolution be fin ly 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, Ruffles and Shull; Nays: None. The mayor thereupon announced that the motion for adoption -10- of said resolution had been unanimously carried, and he thereupon signed the said resolution in approval thereof. Councilmanthen introduced the following ordinance which was read to the meeting: ORDINANCE NO. G 5_� AN ORDINANCE FIXING A SCHEDULE OF RATES FOR WATER AND SANITARY SEWER SERVICE AND PROVIDING REGULATIONS RESPECTING THE SAME BE IT ORDAINED by the Mayor and City Council of the City of Fairhope, Alabama as follows: (1) The following schedules of rates for water and sanitary sewer service furnished by and from the water and sanitary system of said city is hereby adopted to be- come effective upon the acquisition of title to said system by said city: SCHEDULE OF WATER AND SANITARY SEWER SERVICE RATES OF THE CITY OF FAIRHOPE METER RATES FOR WATER The following shall be the schedule of monthly charges for water furnished from the system: First 3,000 Gallons, or fraction thereof, per month: Minimum charge of $1.50 Next 5,000 Gallons or fraction thereof, per month: At the rate of f.35 per 1,000 gallons. Next 10,000 Gallons, or fraction thereof, per month: At the rate of $.25 per 1,000 gallons. Next 32,000 Gallons, or fraction thereof, per month: At the rate of $.15 per 1,000 gallons. Next 50,000 Gallons, or fraction thereof, per month: At the rate of $.10 per 1,000 gallons. Next 50,000 Gallons, or fraction thereof, per month: At the rate of $.08 per 1,000 gallons. All over 150,000 Gallon's per month: At the rate of $.07 per 1,000 gallons. SPECIAL MUNICIPAL SERVICE Rental of standard fire hydrants and the furnishing of said water Flat charge (cover - through hydrants as required for ing all hydrants) street and fire purposes of $88.80 per month -11- SANITARY SEWER SERVICE RATES $1.00 per month minimum for four (4) openings or less 45 per month for each additional opening DEPOSIT The sum of $4.00 shall be required to be deposit- ed before service shall be commenced to any customer desir- ing to connect with the system. Upon payment of the said deposit a water meter shall be installed and connection made. Upon termination of service and removal of the meter, the deposit shall be applied to any outstanding and unpaid charges. The balance of said deposit, if any, remaining after payment of all such charges, shall be returned to the customer. DISCONTINUANCE OF SERVICE FOR NONPAYMENT OF BILLS All bills for water and sewer service furnished shall be rendered monthly, and shall be in the amount of the applicable sewer charge and the applicable water charge for the preceding month. Each bill shall be due when render- ed and shall become delinquent if not paid on or before ten (10) days after the date thereof. If any bill shall become delinquent, an additional charge of 33-1/3% of the amount thereof shall be added to the bill. If any bill (plus the additional charge for delinquency) shall not be paid within five (5) days after it becomes delinquent, the furnishing of water and sanitary sewer service shall thereupon be dis- continued to the customer whose bill is so delinquent. If service shall be so discontinued, an additional charge of $1.00 for disconnection shall be added to the delinquent bill. After disconnection, the delin uent bill (including all water and sewer charges, the 33-M% char e for de- linquency, and the $1.00 disconnection charge plus an additional charge of $1.00 for effecting reconnection to the water works and sanitary sewer system must be paid before the reconnection may be made. The term "month", as herein used, means one calendar month. (2) With respect to service for water orsani- tary sewers, or both, rendered to the same customer through the said system prior to the acquisition of title thereto by the said city and for which service bills shall not have been rendered prior to such acquisition of title, the service rendered to the same customer prior to such acquisition by the said city shall be added to the water and sewer service rendered after the acquisition of such title by the said city in making up the bills for the then current billing period at the rates hereinabove set out. -12- Adopted and approved this^��day of December, 1958. Mayor Authenticated: 7CAM�--,- - w�- W4-N@ ty City Cle"rA Councilman ,)����� moved that unanimous consent be given for immediate consideration of and action on said ordinance, 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, Ruffles and Shull; Nays: None. The mayor thereupon de- clared that the motion for unanimous consent for immediate consideration of and action on said ordinance 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, Ruffles and Shull; Nays: None. The mayor thereupon announced that the motion for adoption of said ordinance had been unanimously carried, and he there- upon signed the said ordnance in approval thereof. Councilman 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, Alabama, as follows: -13- (1) Those persons hereunder named have hereto- fore been elected by the said mayor and city council as members of the board of directors of The Water Works and Sewer Board of the City of Fairhope. None of said persons is an officer of said city. In order to identify their terms of office and ratify the said elections, the follow- ing are hereby officially elected as members of said board of directors for the respective terms set opposite their names: Roy Moyers, for a term of six y ar from June 26, 1954; Arthur C. Mannich, for a term of amw years from June 26, 1956; and R.R. Teamer, for a term of six years from June 26, 1958. (2) In addition to the foregoing members of the said board of directors, Wm. R. Ruffles, Jr., a member of the city council of said city, is also hereby elected a member of the said board of directors for a term of vears from C �9 c� , pursuant to the authorl:tation contained in Section 397 of Title 37 of the Code of Alabama of 1940, as amended by Act. No. 113 adopted at the Second Special Session of the Legislature of Alabama of 1956. The said election of the said Wm. R. Ruffles, Jr., shall not be deemed to impair the election of any of the three members of the said board of directors referred to in the preceding paragraph of this resolution and if for any reason his election should impair the elections made in the preceding paragraph of this resolution then his election shall be of no force and effect. Adopted and approved this 2nd day of December, 1958. Mayor Authenticated: City Clerk Councilman �_J► moved that unanimous consent be given for immediate consideration of and action on said resolution, which motion was seconded by Councilmanand upon the said motion being put to vote the following vote was recorded: Yeas: Mayor Overton and Councilmen Belew, Berglin, Poser, -14 - Ruffles and Shull; Nays: None. The mayor thereupon de- clared that the motion for unanimous consent for immediate consideration of and action on said resolution had been unanimously carried. Councilman then moved that the said resolution be 4nally adopted, which motion was seconded by Councilman Off' _'_ , and upon the said motion being put to vote 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 adoption of said resolution had been unanimously carried, and he thereupon signed the said resolution in approval thereof. There being no further business to come before the meeting the same was, on motion duly adopted, adjourned. Mayor City Clerk