HomeMy WebLinkAbout03-30-1959 Regular MeetingSTATL OF ALUVA
Cc unt j c f L ldn i n
The City Council cf W Sit: cf ,, E- C, ni i 7L, met it %n
"r ( rP-n'G n nl' , sri-n in t}l Cit: i 11 in c Y city
on March 30, 1959, at 7:30 o'clock, P.M., Control Stcndord
Time, in ccntinuation and pursuant to adjournment of the
regular meeting Qicr as held on Parch 23, 1959. The meet-
ing was called to order by E. B. Overton, the iaycr, and upcn
roll call the follovirg members of the city ccuncil were found
to b^ present: Councilmen Charles F. Eplev, halter 0. Poser,
ti+m. R. muffles, Jr., and Barney L. Shull, absent: Y rvin 0.
Borglin. P"ayor Overton presided as charrman of the meeting.
Marie ?'pore, the city clerk, was also present ano acted as
clerk of the m eting. The chairman'of the meeting stated.
UK a quorum tas present ana declared the meating open for
tre transaction of business.
The chairman stated that this was the time and place Qich
had bcon sat by resolution ac,opted by the council on Parch 9,
1959, for tie receipt and opening of scaled bids for the purchase
from the city of w200,000 principal amcnnt of Fublic Improvement
Grneral Obligation Bonds of the city to be dated April 1, 1959)
and that the officisl invitation for bids for the said bonds, in
the fora prescribed in said resolution, hac been published in
The F inccpe Courier, a newspaper published and having goneral
circulation in the city, in tho issues of that rawspaper PUbLISH-
ed on March 19, 1959, and March 26, 1959, and had been distributed
through the State Lcpartment of Finance to the security sealers
who customarily bit for securities issuea by Yunicipalities in
Alabama. Thereupon, in the presence cf the ccuncil and all others
assembled, the clerk publicly opened and read all bids slich had
been filed Pith her, ana of
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had been read she announced that the following bids had been
filed and that each bid was accompanied by a certified check
or a cashier's check in the amount of $4,000 so that each such
bid was qualified to be considered by the council:
Interest Rates,
Bid and Appli- Amount
Name of Bidder cable Years of Bid
Hugo Aarx w Co. 3 1/%, 1960-1964 I nc l us i v e 100
3 1965-1966 „
3 1/8 1967-1969 „
Thornton, Mohr - Farish 3�', 196C-1963 "
Sterne, Agee _z Leach, 1'o, 1964-1963 "
Jointly 3 iAi;,', 1966
1967-1969 ICo
,Aerchants Nat'L, Bk. 3 100.23
of "",obi I e and Bank of
Fairhope, Jointly
First Nat' I . Pk. of
blob i I e Stubbe, 'Natkmns
1_ombardo, Jointly
'"latkins, Morrow Co.
Hendrix I nc .
I st Nat' I . Elk of
Birmingham
F i r^t *';at i Ana I By n�
cf "1,cnt5$ ^nery
Peoree M. :-oe 1c.
J
�otlns^n-Hum^hrp, Co.,
Inc.
Equitable Sec,�riti-s
('Cr, - r a I , -)n
Average Annual
Net Interest
Cost to City
3.0954
3.1227
3.499
3 1/LC� 100.17 3.218
3� r 1960-1966 Incl.
3 3/4O', 1967-1967 „ too
i :A1'� , 1 ; 60- 1'; 61 IT,
1;62-19E9 too 3.2773
3 17'r-1963 Inclusive
3 1/"�,, t9�a-1969 }' I:oo 3.20104
3 I/I;?oo,3C11.00 3.2,,25454
7 ,
960-1963 3.2;;- r.
j 14'. 1964- 1963' rr
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After the bids had been considered by the council and it
appeared that the bid filed by //11
was the bid which reflected the lowest net interest cost to
the city,
Councilman
the following ordinance was then introduced by
and read in full
the meeting:
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
$200,000 PRINCIPAL AMOUNT OF PUBLIC IM-
PROVEMENT GENERAL OBLIGATION BONDS OF THE
CITY OF FAIRHOPY TO BE DATED APRIL 1, 1959
to
BE IT ORDAINED by the City Council of the City of
Fairhope in the State of Alabama as follows:
Section 1. Definitions. The following words and
phrases shall have the following respective meanings herein:
"City" means the municipal corporation of Fairhope
in the State of Alabama, and any municipal corporation re-
sulting from any merger or consolidation thereof with another
municipal corporation.
"Council" means the governing body of the city as
it may at any time be constituted.
"Improvement ordinance" means Ordinance No. 254
of the city adopted by the council on July 14, 1958, as
amended by unnumbered ordinances adopted by the council on
July 31, 1958 and September 8, 1958, which as so amended
was ratified and confirmed by resolution adopted by the
council on November 10, 1958•
"The improvements" means the improvements provided
for in the improvement ordinance.
"The bonds" means those issued hereunder.
"Redemption date" means the date fixed in the pub-
lished notice of redemption for the redemption of any bonds
prior to their maturity.
"Redemption price" means the price at which any
of the bonds called for redemption prior to their maturity
may be redeemed on the redemption date.
"Newspaper" means a newspaper printed in the
English language and customarily published at least five
days during each calendar week.
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"Coupons" means those issued in pursuance hereof
and evidencing the interest on the applicable bonds.
"Holder" when used in conjunction with bonds or
coupons means the person who is in possession and the appar-
ent owner of the designated item.
Definitions include both singular and plural.
Pronouns include both singular and plural and
cover all genders.
Section 2. Findings Respecting Improvements.
The city has heretofore authorized the construction of
improvements under the provisions of the improvement ordi-
nance, which has been confirmed and made final by a resolu-
tion duly adopted by the council. The work of constructing
the improvements has not been completed and no bonds have
heretofore been issued to pay the costs thereof and no notes
or other evidence of indebtedness have heretofore been issued
in anticipation of the sale of the bonds. The engineer for
the city has heretofore estimated, and the council does
hereby estimate, that the total cost of constructing the
improvements, computed in accordance with the provisions of
Section 519 of Title 37 of the Code of Alabama of 1940, as
amended, will exceed $200,000. It will be necessary for
the city to finance the construction of the improvements
during the course of construction thereof, and the council
has determined and does hereby declare that it would be to
the advantage of the city if such financing should now be
accompanied by the sale and issuance of the bonds at this
time for the purpose of financing the said costs.
Section 3. Authorization of the Bonds. Pursuant
to the applicable provisions of the constitution and laws
of the State of Alabama, including particularly Chapter 6
of Title 37 of the Code of Alabama of 19400 as amended,
and for the purpose of providing funds to pay the cost of
constructing the improvements, there are hereby authorized
to be issued by the city the bonds hereinafter described.
Section 4. General Descri Lion of the Bonds.
The bonds shall be designated Public improvement General
Obligation Bonds, shall consist of two hundred coupon bonds
in the aggregate principal amount of $200,000, shall be
numbered from 1 to 200, inclusive, shall be in the princi-
pal amount of $1,000 each, shall be dated April 1, 1959,
and shall mature on April 1 as follows:
Bond Numbers Year of Aggregate Principal
both inclusive) Maturity Amount Maturing
1
to
20
196o
$ 20,000
21
to
40
1961
20,000
41
to
6o
1962
20,000
61
to
80
1963
20,000
81
to
100
1964
20,000
101
to
120
1965
20,000
121
to
14o
1966
20,000
141
to
16o
1967
20,000
161
to
180
1968
20,000
181
to
200
1969
20,000
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Section 5. Interest Provisions and Place of
Payment. The bonds shall bear interest from their date
until their respective maturities at the per annum rate
of g J- �, - / '?40 , /9(/, y —
Yld
57, G
Such interest shall be payable semiannually on April 1
and October 1 until and at the respective maturities of
the bonds, and shall be evidenced by separate interest
coupons attached thereto. Both the bonds and the cou ons
shall bear interest at the rate of six per centum (6Z
per annum after their respective maturities. The bonds
and the coupons shall be payable in lawful money of the
United States of America at the principal office of The
Merchants National Bank of Mobile, in the City of Mobile
in the State of Alabama..
Section 6. Optional Redemption Provisions.
While the city is not in default in the payment of the
principal of or interest on any of the bonds, any of the
bonds may be redeemed by the city at its option on any
interest payment date on and after October 1, 1959, as a
whole or in part and if in part then in their inverse
numerical order, at a redemption price for each bond
redeemed equal to its face value plus accrued interest
thereon to the redemption date and a premium equal to
one year's interest thereon if the redemption date is
on or before April 1, 1963, and a premium equal to six
months' interest thereon if the redemption date is sub-
sequent to April 1, 1963. Any such redemption shall be
effected in the following manner:
(a) The council shall adopt a resolu-
tion containing the following: (1) A call
for redemption, on a specified date when they
are by their terms subject to redem tion, of
bonds having stated numbers; and (2p} A find-
ing that the city is not in default in the
payment of the principal of or interest on
any of the bonds.
(b) Not less than thirty days prior to
the redemption date, the city shall cause to
be published at least one time in a newspaper
published in the City of Mobile, Alabama, a
notice stating the following: that bonds
bearing stated numbers (which shall be the
numbers specified in the resolution required
in subsection (a) of this section) have been
called for redemption and will become due and
payable at the applicable redemption price on
a specified redemption date (which shall be
the date provided for such redemption in the
resolution required in subsection (a) of this
section); and that all interest thereon will
cease after the redemption date.
(c) On or prior to the redemption date
the city shall notify the bank at which the
bonds shall be payable of the city's compliance
with the requirements of the preceding subsec-
tions (a) and (b) of this section, and shall
further make available at said bank the total
redemption price of the bonds so called.
Upon compliance by the city with the requirements contained
in subsections (a), (b) and (c) of this section, and if the
city is not on the redemption date in default in payment of
the principal of and interest on the bonds, the bonds so
called for redemption shall become due and payable on the
redemption date at the redemption price, and interest
thereon shall thereafter cease. The bank at which the
bonds are payable shall not be required to pay any coupon
maturing on the redemption date which is applicable to any
bond so called for redemption unless the bond to which such
coupon is applicable is also presented for payment; provided,
that in the event such bank should pay any such coupon with-
out payment of the applicable bond it shall not be liable to
the holder of any such applicable bond or to the city or to
anyone whomsoever; and provided further, that such bank
shall pay such coupon out of the moneys supplied to it for
such purpose by the city if the holder thereof shall present
evidence satisfactory to such bank that such holder is the
owner of the coupon so presented and is not the owner of the
bond to which such coupon is applicable.
Section 7. Execution of the Bonds. The bonds
shall be signed in behalf of the city by its mayor and by
the city clerk, and the corporate seal of the city shall
be affixed to each thereof by the city clerk, whose signa-
ture thereon shall constitute attestation of said seal.
The coupons shall bear the facsimile signatures of said
mayor and city clerk, which facsimile signatures shall be
valid in all respects as if the said persons had signed
the coupons in person.
Section 8. Pledge of General Credit and Special
Pledges. The bonds shall be general obligations of the
city for the payment of the principal of and interest on
which the full faith and credit of the city are hereby
irrevocably pledged. As additional security for payment
of the said principal and interest there are further
hereby irrevocably pledged (a) all assessments that may
hereafter be made pursuant to the provisions of the
improvement ordinance against the properties specially
benefited by the improvements, together with the proceeds
from all such assessments and the proceeds from the sale
or redemption of any of said properties which may be sold
by the city in enforcement of the lien of any such assess-
ments, and the liens which the city may now or hereafter
have on the said properties as security for said assess-
ment are hereby transferred and assigned for the benefit
of the holders of the bonds and the coupons with power to
enforce the same either at law or in equity; and (b) the
ro ra _portion to hich the bonds may_be.entitled_to-
snare, along with all other bonds of the city at any time
outstanding; -in the proceeds of the additional annual ad
valorem tax- at ~the_rate-bf.-dne-half of oaef.per centum_--
(r/gof _ �.� 1 wthe city is authorized by Amendment VIII
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to the Constitution of Alabama to levy for the purpose of
paying its bonds and the interest thereon.
Section 9. Agreements Respecting the Construction
of the Improvements and the Levy and Collection of Assess-
ments. The city agrees that it will forthwith proceed with
the construction of the improvements in accordance with the
provisions of the improvement ordinance, and it will complete
the same as soon thereafter as may be practicable. Upon
completion of the construction of the improvements the city
will take all steps and adopt all proceedings that may be
authorized or required by the laws of Alabama and that may
be necessary to levy valid assessments for the costs of the
improvements against the properties specially benefited
thereby; provided, that no such assessment shall exceed
the increased value of such properties by reason of the
special benefits derived from the improvements with respect
to which the assessment is made. The city agrees that
thereafter it will undertake to collect all assessments
so made pursuant to the improvement ordinance as and when
the said assessments become due and payable, and further
agrees that in the event any of the owners of any of the
properties against which such assessments shall be made
should elect to pay the same in installments in the manner
authorized under the laws of Alabama and any such install-
ments should remain unpaid for as long as one year after
the same shall become due and payable, the city thereupon
will take all steps necessary to enforce the liens on such
assessments by sale of the properties against which such
assessments shall have been made. All proceeds collected
from said assessments shall be deposited by the city from
time to time as collected in a special fund separate and
apart from all other funds of the city, and such special
fund shall constitute a trust fund for the benefit of the
holders of the bonds and the coupons and shall be used
solely for the retirement thereof.
Section 10. Agreements to Continue the Levy of
the Additional Ad Valorem Tax. The _ci�t �a . rees that so
long as _any of the bonds remain unpaid it will levy each
years ime and in tfieTzT e%-p o-' ntTd"bY-X9 , the
said-aAditional-annual q?I: -O-rem fax a£--'�fe ra-te of one-
half of one_�t�x' centum (,1�2rS�J,_anc:rit.�wl�_ap yfor
pl '
the payrnen:�Yof the_principal of and interest on the bonds,
so much of the pro rata7_porti n_to_wfiTch_the bonds may be
en it ed to share, along with all other bonds of the city
at the time outstanding, in the proceeds of the said tax.
The city will annually, at the times provided by law, use
its best efforts to collect or cause to be collected the
said tax so levied.
Section 11. Payment at Par. Each banking insti-
tution at which any of the bonds shall at any time be
payable, by acceptance of its duties as a paying agent
therefor, shall be construed to have agreed thereby with
the holders of the bonds and the coupons that, out of the
moneys supplied to it for that purpose, it will make all
payments of the bonds and the coupons in bankable funds
at par and without deduction for exchange, fees or expenses.
The city agrees with the holders of the bonds and the
coupons and with each such banking institution that it
will pay all charges for exchange, fees, or expenses which
may be made by any such paying agent in the making of such
remittances at par in bankable funds.
Section 12. Contractual Provisions. The provi-
sions of this ordinance shall constitute a contract between
the city and each holder of the bonds and the coupons.
Section 13. Severability. The various provisions
of this ordinance are hereby declared to be severable. In
the event any provision hereof shall be held invalid by a
court of competent jurisdiction such invalidity shall not
affect any other portion of this ordinance.
Section 14. Form of the Bonds. The bonds and
the coupons applicable thereto shall -"Fe —in substantially the
following forms with appropriate changes therein to conform
with the provisions hereof:
No.
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF ALABAMA
CITY OF FAIRHOPE
PUBLIC IMPROVEMENT GENERAL OBLIGATION BOND
$1,000
On the 1st day of April, 19 ___. (unless this bond
shall have been duly called for prior payment) for value
received, the City of Fairhope, a municipal corporation in
the State of Alabama, promises to pay to the bearer hereof,
upon presentation and surrender hereof, the sum of
O N E T H O U S A N D D 0 L L A R S
with interest thereon at the rate of % per annum,
payable semiannually on April 1 and October 1 in each year
until and at the maturity hereof upon presentation and
surrender of the appropriate annexed coupons as the same
respectively mature. Both the principal hereof and inter-
est hereon shall be payable in lawful money of the United
States of America at the principal office of The Merchants
National Bank of Mobile, in the City of Mobile in the State
of Alabama.
This bond is one of an authorized issue aggre-
gating $200,000 in principal amount (herein called "the
bonds") numbered in the order of their maturity from 1 to
200, inclusive, and has been issued pursuant to the pro-
visions of Chapter 6 of Title 37 of the Code of Alabama of
1940, as amended, and an ordinance of the city for the
purpose of providing funds to pay the cost of constructing
certain public improvements authorized under the provisions
of the city's Ordinance No. 254, as amended, which ordinance
as amended was ratified and confirmed by resolution of the
governing body of the city on November 10, 1958. The bonds
may be redeemed as a whole or in part, and if in part then
in inverse numerical order of those at the time outstand-
ing, on any interest payment date at a redemption price
It
for each bond redeemed equal to its face value plus.accrued
interest thereon to the date fixed for redemption and the
following premium: one year's interest thereon if the date
fixed for redemption is on or before,April 1, 1963; and six
months' interest thereon if the date fixed for redemption is
after April 1, 1963. Notice of any such redemption shall be
given at least one time not less than thirty days before the
date fixed for redemption by publication in a newspaper pub-
lished in the City of Mobile, Alabama.
The indebtedness evidenced by this bond is a
general obligation of the city for the payment of the
principal of and interest on which the full faith and credit
of the city have been irrevocably pledged. In and by the
ordinance under which the bonds are authorized to be issued,
said city has (a) further pledged for the benefit of the
holders of the bonds all assessments made or to be made
against the properties specially benefited by the said
public improvements, together with the proceeds of such
assessments, and has assigned for the benefit of the
holders of the bonds and the interest coupons applicable
thereto all liens securing such assessments, and (b) further
pledged for the benefit of the holders of the bonds the
pro rata portion to which the bonds may be entitled to
share, with all other bonds of the city at any time out-
standing, in the proceeds of the additional annual ad
valorem tax at the rate of one-half of one per centum
(1/2 of 1%) which the city is authorized by Amendment
VIII to the Constitution of Alabama to levy for the pur-
pose of paying its bonds and the interest thereon.
It is hereby certified and recited that all con-
ditions, actions and things required by the constitution
or laws of Alabama to exist, be performed or happen prece-
dent to or in the issuance of this bond and the creation
of the indebtedness evidenced hereby exist, have been
performed and have happened and that the indebtedness
evidenced by this bond, together with all other indebted-
ness of the city, was when incurred and now is within
every debt and other limit prescribed by the constitution
and laws of Alabama.
IN WITNESS WHEREOF, the city has caused this
bond to be executed in its behalf by its mayor and by its
city clerk, has caused its corporate seal to be hereunto
affixed by its clerk whose signature hereon shall consti-
tute attestation of said seal, has caused the annexed
interest coupons to be executed with the facsimile
signatures of the said mayor and city clerk, and has
caused this bond to be dated April 1, 1959•
CITYr_.OF
Mayor
By_
22::r_i16yy Clerk
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(Form of Coupon)
No.
On the 1st day of , 19 , the
City of Fairhope in the State of Ala ama will pay to the
bearer hereof at the principal office of The Merchants
National Bank of Mobile, in the City of Mobile in the State
of Alabama, Dollars
in lawful money of the United States of America, being
interest then due on its Public Improvement General Obliga-
tion Bond dated April 1, 1959, and numbered
CITY OF FAIRHOPE
City C7-erk
Following the maturity date of each coupon due on
and after April 11 1960, there shall be inserted the follow-
ing:
"(unless the bond to which this coupon
is applicable shall have been duly
called for prior payment),"
Section 15. Sale of the Bonds. The bid of
1Y
�-,
iD
for the bonds at a purchase price equal to
plus accrued interest thereon from April 1, 1959, to the
date of payment therefor, representing an average annual
net interest cost to the city of .. 6 q 5 V % per annum
computed from the date of the bonds to their respective
maturities, is hereby found and declared by the council to
be the bid reflecting the lowest average annual net inter-
est cost to the city, and the said bid is hereby accepted
and the bonds are hereby sold and awarded to the said
bidders at and for the said purchase price plus said
accrued interest.
Adopted and approve th s 0 ay of March, 1959.
Mayor
City Clerk
Councilman Shull moved that the rules be suspended rnd that
unanimous consent be given for inmrdinte crrsideraticn of and
action on said resolution, which motion was seconded by Councilmen
Boser,a& upon the mcti .n being put to vot^ the folloz+ing vote Pas
recorded: Yeas: Kayor Overton and Councilmen Bolen, Poser, Ruffles a
end Shull; Nays: None. The mayor thereupon declarer that the motion
for unanimous consent for the imwediate consideration of and action
on said resolution hac, been unanimously carried. Councilman Pcle;7
thereupon moved that the said resolution be finally scopted, which
motion eras seconded b; Councilman Shull, and upon motion being put
to vote was recorded: Yeas: Mayor Overton :and Councilmen Bclew,
Poser, Ruffles and Shull; Prays: Prone. The mayor thereupon announced
that the motion for the adoption of said ordinance had been unanimously
carried and he theroupcn signed the sane in approval thereof.
Councilman hufflas then moved that the city clergy: be instructed
tc raturn all of the chucks Trhich had been fileu u7 all bic ders
other than the successful bi_cder for the said bonds, nhich motion
being auly seconr ed was unanimously carried by the folloz ing vote:
Yeas: Ypyor Overton and Councilmen Belev, Poser, Ruffles and Shull.
I zys: Ncre.
The Uayor stated to the council that upon checking the minutes
cf the meeting of the city council which was heala on July A,
it was discovered that certain action taken by the council at that
meeting hoc been omitted in writing up the minute's thereof and it
would be appropriate for the council to cc.nsider authorizing the
correction of those minutes so that they till correctly reflect
the action that was taken at said meeting. After discussion of the
omission the follozing resolution was introduced by Councilran Poser
and read to the meeting:
BE IT RLSOLVID by the City Council of the City of Fcirhope,
Alabama, that, in order correctly to reflect the actions taken at
the regular meeting oT the city council Feld on July Q 1958, the
city clerk is Hereby order d and directed, to insert and incorporate
in the minutes of said meeting, im..r adi ste±ly follovi ng the end of Ord-
inance Number•255 there the said ordinance appears in said minutes
and immediately preceding the sentence beginning with the phrase
"Councilman Poser moved that the foregoing ordinances ba adepted",
the folloying two sentences:
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"Councilman Poser moved that unanimous consent
.be given for the immediate consideration of
the foregoing Ordinance No. 255, which motion
was seconded by Councilman Shull, and upon the
motion being put to vote the following vote
was recorded: Yeas: Mayor Overton and Coun-
cilmen Belew, Berglin, Poser, Ruffles and Shull;
and the following voted nay: None. The mayor
thereupon declared that the motion for the
granting of unanimous consent for the immediate
consideration of the said ordinance had been
unanimously adopted."
Councilman ` n s F a moved that unanimous consent
be granted for the immediate consideration of the said
resolution, which motion was seconded by Councilman SLtolf ,
and upon the motion being put to vote the following vote
was recorded: Yeas: Mayor Overton and Councilmen Belew,
-. !4:n, Poser, Ruffles and Shull; Nays: None. The mayor
thereupon declared that the motion for the granting of
unanimous consent for the immediate consideration of the
said resolution had been unanimously adopted.
Councilman ]F E / E W then moved that the
said resolution be adopted, which motion was seconded by
Councilman R GL .a.3. 1S, and upon the motion being put
to vote the following vote was recorded: Yeas: Mayor
Overton and Councilmen Belew, ike=g2=j Poser, Ruffles and
Shull; Nays: N 0,&E_�_. The mayor thereupon declared
that the motion for the adoption of said resolution had
been unanimously carried and the said resolution duly
adopted.
There being no further business to come before the
meeting it was moved, seconded and unanimously carried that
the meeting be adjourned
.y
Approved
Mayor
Attest:
C ty Clerk