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HomeMy WebLinkAbout11-14-1972 Adjourned Regular Public MeetingEXTRACTS FROM THE MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF FAIRHOPE The City Council of the City of Fairhope, Alabama, con- vened in adjourned regular public session in the City Hall in said City, at 12:00 o'clock noon, Central Standard Time on the 14th day of November, 1972, pursuant to adjournment of the last regular meeting held on November 1?, 1972. On roll call, the following answered present: Mayor James P. Nix Councilmen: David E. Bishop H. G. Bishop Sam E. Box 011ie E. Deese B. L. Shull Absent: None. The City Clerk was also present. The Mayor announced a quorum present and the meeting open for the transaction of business. The minutes of the last meeting were read and approved. The Mayor stated that an Official Notice of Sale of the City's Water, Gas and Sewer Revenue Bonds, Series 1972, in the principal amount of $875,000, had been published once a week for two consecutive weeks in The Fairhope Courier, a newspaper published in the City, the first publication having been effected on November 2, 1972. He also stated that an Offi- cial Notice of Sale and an•Official Statement respecting the Bonds had been distributed to investment bankers, banks and other prospective purchasers, a copy of which Official State- ment was ordered filed with the City Clerk. The following resolution was introduced in writing and read by the City Clerk: BE IT RESOLVED by the City Council of the City of Fair - hope that the action of the Mayor in causing the following Official Notice of Sale to be published in The Fairhope Courier, a newspaper published in the City, and to be dis- tributed.to prospective purchasers, and the form and content of the said Notice, are hereby ratified and confirmed in all respects and that a public sale shall be held in accordance with said Notice: OFFICIAL NOTICE OF SALE $8759000 Water, Gas and Sewer Revenue Bonds, Series 1972, of the City of Fairhope, Alabama Sealed bids will be received by the City Council of the City of Fairhope, Alabama (herein called the "City") at the City Hall, Fairhope, Alabama, until the hour of 12:00 o'clock Noon, Cen- tral Standard Time, on the 14th day of November, 1972, at which time they will be publicly opened and announced for the purchase of the bonds hereinafter described. The Bonds will con- sist of 175 bearer, coupon bonds, in the denomination of $5,000 each, will be dated December 1, 1972, and will mature on December 1 in years and principal amounts as follows: Year Amount Year Amount 1973 $20,000 1984 $40,000 1974 20,000 1985 45,000 1975 20,000 1986 45,000 1976 25,000 1987 50,000 1977 25,000 1988 50,000 1978 25,000 1989 50,000 1979 30,000 1990 55,000 1980 30,000 1991 55,000 1981 35,000 1992 60,000 1982 35,000 1993 60,000 1983 40,000 1994 60.,000 The Bonds of Series 1972, having stated maturities in 1983 and thereafter will be subject to redemption at the option of the City on December 1, 1982 and any interest payment date thereafter. Any redemption may be in whole or in part, but if in part shall be in inverse` order of maturities and identification numbers, latest maturities and highest numbers first. Any redemption shall be at a redemption price equal to the principal amount of each Bond to be redeemed plus accrued in- terest thereon to the date fixed for redemption, plus the following redemption premium (expressed as percentages of principal amount of each Bond to be redeemed) : 4% on Bonds maturing in 1983, 3-1/2% on Bonds maturing in 1984 and 1985, 3% on Bonds maturing in 1986, 2-1/2% on Bonds ma- turing in 1987 and 1988, and 2% on Bonds maturing in 1989 and 1990, but in no event shall any such premium exceed one year's interest on any Bond being redeemed. There will be no redemp- tion premium on Bonds maturing in the years 1991 through 1994. Interest on the Bonds will be payable semiannually on June 1 and December 1 in each year. Principal of and interest on the Bonds will be payable at the principal office of The Merchants National Bank of Mobile, in the City of Mobile, Alabama. The Bonds of Series 1972 will be issued as additional parity bonds under and will be secured by a Trust Indenture dated as of December 1, 1961, between the City and The Merchants National Bank of Mobile, Mobile, Alabama, as Trustee (herein called the "Trust Indenture"). The City has heretofore issued $1,000,000 principal amount of its Water, Gas and Sewer Revenue Bonds, Series 1961, dated December 1, 1961, under the Trust Indenture. 1 The Bonds of Series 1972 will be payable solely out of the revenues of the City's water works and sanitary sewer system and its natural gas distribution system, subject to certain prior pledges thereof, and will be secured by a pledge and assignment of said revenue on a parity with the Bonds of Series 1961 and any additional parity bonds hereafter issued upon compliance with the provi- sions of the Trust Indenture. The City has reserved the right to issue additional bonds from- time to time payable from said revenues on a parity with the Bonds of Series 1961 and the Bonds of Series 1972 upon compliance with the provisions of the Trust Indenture. Bidders are invited to name in their bids the annual rate or rates of interest to be borne by the Bonds of Series 1972 offered for sale, subject to the following limitations: (1) all Bonds hav- ing the same maturities must bear the same interest rate throughout their life; (2) rates may be in any multiples; (3) no supplemental coupons will be permitted; (4) the interest rates on Bonds maturing in and prior to 1982 shall not exceed 6% /' per annum ; (5) the interest rates on Bonds maturing in 1983 and thereafter shall not exceed the following per annum rates: 5.61/-'C on Bonds maturing in 1983 ; 5.7 ;'C on Bonds maturing in 1984 and 1985 ; 5.75 � on Bonds maturing in 1986 ; 5.8% on Bonds maturing in 1987 and 1988; 5.85(/( on Bonds maturing in 1989 and 1990, and 6% on Bonds maturing in 1991 through 1994. No bid for less than all of the Bonds of Series 1972 offered for sale or for less than $861,875.00 plus accrued interest will he accepted. All bids will be considered as including accrued interest on the Bonds to the date of their delivery, whether or not so stated. The Bonds will be sold to the bidder whose bid reflects the lowest net interest cost to the City for the Bonds, computed from the date of the Bonds to their respective maturities. Any bid not conforming to this Official Notice of Sale or not on the Official Bid Form, with- out alteration, except for the insertion required by the form, may be rejected. The City retains the right to reject any and all bids and to waive any irregularities or informalities in any Official Bid Form. Each bid for the Bonds must be on the Official Bid Form, must be enclosed in a sealed envelope addressed as set forth on such bid form, identified outside in substance "Bid for Water, Gas and Sewer Revenue Bonds, Series 1972"; and must be accompanied by a certified or cashier's check enclosed as a good faith deposit, payable to the order of the City, in the amount of $17,500. No interest will be allowed on any such checks. The checks of the unsuccessful bidders will be returned promptly following the award. The check of the successful bidder will be applied as part payment for the Bonds or if he fails to comply with the terms of his bid, will be retained by the City as liquidated damages, or if the City fails to fulfill the conditions of this Notice, such deposit will be returned. The Bonds will be delivered in Mobile, Alabama, or at the option of the Purchaser, at his ex- pense, at Birmingham, Alabama, as soon as they and the supporting documents and proceedings may be prepared and adopted. Delivery will be made against payment in clearing house funds of the city in which the delivery is made. Notice of the date on which delivery will be made will be given to the purchaser not less than 72 hours prior to such date. The Bonds will be accompanied by the customary closing papers, including a certificate stating that there is no litigation pend- ing affecting the validity thereof. The City will furnish to the successful bidder without cost the printed Bonds and the opinion of Messrs. Dumas, O'Neal & Hayes, approving the validity of the Bonds and the pledge of the revenues therefor. No conditional bids will be considered but all bids will be construed to be conditioned upon the provisions of this Notice. Additional information may be obtained from the undersigned or from Thornton, Farish & Gauntt, Inc., 515 South Perry Street, Montgomery, Alabama 36104, Fiscal Adviser to the City. THE CITY OF FAIRHOPE, AL ABAMA By /s/ JAMES P. NIX Mayor 2 It was moved by Mr,. H. G. Bishop that all rules and regulations which, unless suspended, would prevent the immediate consideration and adoption of said resolution be suspended and that unanimous consent to the immediate consideration and adop- tion of said resolutioh be given. The motion was seconded by , Mr. B• L. SHULL and on roll call was unanimously adopted, those answering aye being: Mayor James P. Nix Councilmen: David E. Bishop H. G. Bishop Sam E. Box 011ie E. Deese B. L. Shull Nays: None. The Mayor declared the motion carried. After said resolution had been discussed and considered in full by the Council, it was moved by Mr. B. L. Shull that said resolution be now placed upon its final passage and adopted. The motion was seconded by Mr. David S. Bishop The question being put as to the adoption of said motion and the final passage of said resolution, the roll was called with the following results: Mayor James P. Nix Councilmen: David E. Bishop H. G. Bishop Sam E. Box 011ie E. Deese B. L. Shull Nays: None. The Mayor declared the motion carried and said resolution passed and adopted as introduced and read. The Mayor stated that this was the time and place fixed for conducting a public sale on sealed bids of the Bonds described in the foregoing Official Notice of Sale. -He thereupon instructed the City Clerk to open and publicly read each bid which had been submitted in accordance with the Official Notice of Sale. Bids from the following named bidders, each accompanied by a certified or cashier's check for $17,500, payable to the order of the City, were publicly opened, read and tabulated as follows: Name of Bidder Sterne,Agee & Leach,Inc. Shropshire,Frazer & Co. Loewi & Co.,Inc. John Nuveen & Co. Thornton,Farish & Gauntt,Inc. Hendrix, Mohr & Yardley Average Annual Princinal Net Interest Amount Bid Interest Rates Cost Rate 8661687.50 1973/1982 4.50% 5.08685% 1983 4.55% 1984 4.70% 1985 4.85% 1986 5.00% 1987 5.05% 1988 5.10% 1989 5.15% 1990 5 .20% 1991 5 .25% 1992/93 5.30% 1994 5.00% 861,884.98 1973/1982 6 3/497o 5.203449 1983 5.60% 1984/85 5.70% 1986/87 5.75% 1988 5.50% 1989 5 .35% 1990 5.40% 1991 5.45% 1992/93 5.5W 1994 1/20% 8621013.00 1973/1978 5.50% 5.47067o 1979 4.6W 1980 4.70% 1981 4 .80% 1982 4.90% 1983/1984 5.00% 1985/1986 5.25% 1987 5 .40% 1988/1994 5.50% 8661?250.00 4 3/4% 1973/1983 5.4430697o 4.90% in 1984: 5.50% in 1989 5.05% in 1985 5.60% in 1990 5.20% in 1986 5.65% in 1991/92 5.30% in 1987 5.70% in 1993/94 5.40% in 1988 Merrill Lynch, Pierce, Fenner & Smith 6.257o 1973/1976 5.197203% & Associates 863,012.50 5.50% 1977/1982 4.50% in 1983 5.307o in 1989 4.60% in 1984 5.40% in 1990 4.75% in 1985 5.00% 1991/1994 4.90% in 1986 5.ON in 1987 5.207o in 1988 The bids were considered and discussed, and it was determined that the bid of Sterne, Agee & Leach, Inc. and Shropshire, Frazer & Company reflected the lowest net interest cost to the City for the Bonds, computed to their respective maturities. Thereupon, the following resolution in writing was in- troduced by Mr.. H. G. Bishop Clerk: and read by the City BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAIR - HOPE, ALABAMA, as follows: 1. The City of Fairhope has duly conducted a public sale on sealed bids of the $875,000 of Water, Gas and Sewer Revenue Bonds, Series 1972, described in and in accordance with the Official Notice of Sale set forth in the minutes of this Notice and has found and determined that the bid of; heretofore set out, is the lowest and best bid, reflects the lowest net interest cost to the City for the Bonds computed to their respective maturi- ties. 2. The Bonds will bear interest at the following rates per annum: 4.50 % for Bonds maturing in 1973 through 1982 % for Bonds maturing in through % for Bonds maturing in through % for Bonds maturing in through % for Bonds maturing in through 4.55 % for Bonds maturing in 1983 4.70 % for Bonds maturing in 1984 4.85 % for Bonds maturing in 1985 5.00 % for Bonds maturing in 1986 5.05 % for Bonds maturing in 1987 5.10 % for Bonds maturing in 1988 5.15 . % for Bonds maturing in 1989 5.20 % for Bonds maturing in 1990 5.25 % for Bonds maturing in 1991 5.30 % for Bonds maturing in 1992 5.30 % for Bonds maturing in 1993, and 5.00 % for Bonds maturing in 1994 Bonds bearing interest at the foregoing rates per annum are hereby awarded sold to the aforesaid lowest bidder as follows: Bonds maturing in or prior to 1982 together aggregating $265,000 principal amount at a price of $ 256,687.50 , plus accrued interest to the date,of delivery and payment and Bonds maturing in 1983 and thereafter at par plus accrued interest to the date of delivery and payment. Duly passed and adopted this 14th day of November, 1972. S E A L Attest: Cler It was moved by Mr. Sam E. Box that all rules and regulations which, unless suspended, would prevent the imme- diate consideration and adoption of said resolution be sus- pended, and that unanimous consent to the immediate considera- tion and adoption of said resolution be given. The motion was seconded by Mr. 'B. L. Shull and on roll call was unanimously adopted, those anwering aye being: Mayor James P. Nix Councilmen: David E. Bishop H. G. Bishop Sam E. Box 011ie E. Deese B. L. Shull Nays: None. The Mayor declared the motion carried. After said resolution had been discussed and considered in full by the Council, it was moved by Mr._H. G. Bishop that said resolution be now placed upon its final passage and adopted. The motion was seconded by Mr. B. L. Shull The question being put as to the adoption of said motion and the final passage of said resolution, the roll was called with the following results: Ayes: Mayor James P. Nix Councilmen: David E. Bishop H. G. Bishop Sam E. Box 011ie E. Deese B. L. Shull Nays: None. The Mayor declared the motion carried, and said resolu- tion passed and adopted as introduced and read. It was moved and seconded that the meeting be adjourned. Motion carried. OFFICIAL BID FORM City of Fairhope City Hall Fairhope, Alabama Gentlemen: 11/ 14/72 For $875,000 principal amount of Water, Gas and Sewer Revenue Bonds, Series 1972 of the City of Fair - hope, Alabama, described in the attached Official Notice of Sale which official Notice of Sale is incorporated herein by reference and is made a part of this proposal, and bearing interest at the per annum rates set out below (payable semiannually) we offer to pay Ei ht hundred s9.xt� six thousand Dollars 866 687 50 slx—hun red eighty seven and 50/100— ($ —) plus accrued interest thereon from December 1, 1972, to the date of delivery. Principal Coupon Principal Coupon Maturity Amount Rate Maturity Amount Rate 1973 $ 20,000 450 % 1984 $ 40,000 70 4.85 % 1974 20,000 % 1985 45,000 . % 1975 20,000 4' 50 % 1986 45,000 5 5 • �� % 1976 25,000 4.50 % 1987 50,000 5.05 % i977 25,000 4.50 % 1988 50,000 5.10 % 1978 25,000 4.50 % 1989 50,000 5.15 % 1979 30,000 4.50 % 1990 55,000 5.20 % 1980 30,000 4.50 % 1991 55,000 5.25 % 1981 35,000 4.50 % 1992 60,000 5.30 % 1982 35,000 4.50 % 1993 60,000 5.30 % 1983 40,000 4.55 % 1994 60,000 5.00 % In accordance with the terms of the Official Notice of Sale, we enclose herewith, as a good faith deposit, a certified or cashier's check payable to the order of the City, in the amount of $17,500. The undersigned hereby acknowledges receipt of a copy of the Official Notice of Sale. Computation of Net Interest Cost (For information only —not consti- tuting part of the bid) Total Coupon Interest Cost Plus Discount Less Premium Net Interest Cost $600,075.00 8,312.50 t 608, 387.50 Average Annual Net 5.08685 Interest Cost rate % Return of good faith deposit is acknowledged this 14th day of November, 1972 Respectfully submitted, Sterne, Agee & Leach, Inc. Shropshire, Frazqy & Company BY: No addition, alteration or enlargement to this bid form will be acceptable. OFFICIAL BID FORM City of Fairhope City Hall Fairhope, Alabama Gentlemen: For $875,000 principal amount of Water, Gas and Sewer Revenue Bonds, Series 1972 of the City of Fair - hope, Alabama, described in the attached Official Notice of Sale which official Notice of Sale is incorporated herein by reference and is made a part of this proposal, and bearing interest at the per annum rates set out below (payable semiannually) we offer to pay_/o�� /__ Dollars ($ c 6 8��) plus accrued interest thereon rom Dec�7&997'2, to the date of delivery. Principal Coupon Principal Coupon Maturity Amount Rate Maturity Amount Rate 1973 $ 20,000 1984 $ 40,000 _ , 7 0 % 1974 20,000 6 3 �4% 1985 45,000 '-70 1975 20,000 % 1986 45,000 7 r.,— % 1976 25,000 311, % 1987 50,000 J % 1977 25,000 % 1988 50,000 J�'`rd % 1978 25,000 1989 50,000 ``% 1979 30,000 i4� 1990 55,000 4' % 1980 30,000 _% F' 1991 55,000 - �_ % J 1981 35,000 % 1992 60,000 0 % 1982 35,000 % 1993 60,000 0 % 1983 40,000 O % 1994 60,000 % In accordance with the terms of the Official Notice of Sale, we enclose herewith, as a good faith deposit, a certified or cashier's check payable to the order of the City, in the amount of $17,500. The undersigned hereby acknowledges receipt of a copy of the Official Notice of Sale. Computation of Net Interest Cost (For information only —not consti- tuting part of the bid) Total Coupon Interest Cost $� �� 02 �� •y O /� Plus Discount 13, Less Premium - o "' Net Interest Cost $ 6 3 J �- Average Annual Net O Interest Cost rate �o%b3Y-�7 % Return of good faith deposit is acknowledged this 14th day of November, 1972 submitted, 'C' Y. /` No addition, alteration or enlargement to this bid form will be acceptable. OFFICIAL BID FORM City of Fairhope City Hall Fairhope, Alabama Gentlemen: For $875,000 principal amount of Water, Gas and Sewer Revenue Bonds, Series 1972 of the City of Fair - hope, Alabama, described in the attached Official Notice of Sale which official Notice of Sale is incorporated herein by reference and is made a part of this proposal, and bearing interest at the per annum rates set out below (payable semiannually) we offer to payEight hundred sixty two thousand thirteenDollars ($ 862.01 00 ) plus accrued interest thereon from December 1, 1972, to the date of delivery. Principal Coupon Principal Coupon Maturity Amount Rate Maturity Amount Rate 1973 $ 20,000 5.50 % 1984 $ 40,000 -00 %. 1974 20,000 5.54 % 1985 45,000 5.25 % 1975 20,000 5.50 % 1986 45,000 5.25 % 1976 25,000 5.50 % 1987 50,000 5.40 % 1977 25,000 5.50 % 1988 50,000 5.50 % 1978 25,000 5.50 % 1989 50,000 5.50 % 5.59—% 1979 30,000 4.60 % 1990 55,000 1980 30,000 4.70 % 1991 55,000 5-.50—% 1981 35,000 4.80 % 1992 60,000 % 1982 35,000 4.90 % 1993 60,000 5.50 % 1983 40,000 5.00 % 1994 60,000 5.50 % In accordance with the terms of the Official Notice of Sale, we enclose herewith, as a good faith deposit, a certified or cashier's check payable to the order of the City, in the amount of $17,500. The undersigned hereby acknowledges receipt of a copy of the Official Notice of Sale. Computation of Net Interest Cost Respectfully submitted, (For information only —not consti- tuting part of the bid) John Nuveen & Company Total Coupon Interest Cost Plus Discount Less Premium Net Interest Cost Average Annual Net Interest Cost rate $ 641,297.50 12,987.00 -0-- $ 6541,284.50 5.4706 % Return of good faith deposit is acknowledged this 14th day of November, 1972 lZr ITPreharits Nationni Bnnk of Mobil as agents No addition, alteration or enlargement to this bid form will be acceptable. OFFICIAL BID FORM City of Fairhope City Hall Fairhope, Alabama Gentlemen: For $875,000 principal amount of Water, Gas and Sewer Revenue Bonds, Series 1972 of the City of Fair - hope, Alabama, described in the attached Official Notice of Sale which official Notice of Sale is incorporated herein by reference and is made a part of this proposal, and bearing interest at the per annum rates set out � below (payable semiannually) we offer to pay EIGHT HUNDRED SIXTY-SIX TWO HUNDRED Fo s ($ 866,250.00 ) plus accrued interest thereon from December 1, 1972, to the date of delivery. Principal Coupon Principal Coupon Maturity Amount Rate Maturity Amount Rate 1973 $ 20,000 4 3/4 % 1984 $ 40,000 4.90 % 1974 20,000 " % 1985 45,000 5.05 % 1975 20,000 " % 1986 45,000 5.20 % 1976 25,000 " % 1987 50,000 5.30 % 1977 25,000 % 1988 50,000 5.40 % 1978 25,000 " % 1989 50,000 5.50 % 1979 30,000 " % 1990 55,000 5.60 % 1980 30,000 " % 1991 55,000 5.65 % 1981 35,000 % 1992 60,000 5.65 % 1982 35,000 " % 1993 60,000 5.70 1983 40,000 f T % 1994 60,000 5.70 In accordance with the terms of the Official Notice of Sale, we enclose herewith, as a good faith deposit, a certified or cashier's check payable to the order of the City, in the amount of $17,500. The undersigned hereby acknowledges receipt of a copy of the Official Notice of Sale. Computation of Net Interest Cost (For information only —not consti- tuting part of the bid) Total Coupon Interest Cost Plus Discount Less Premium Net Interest Cost $ 642,240.00 8,750.00 $ 650,990.00 Average Annual Net 5.44306 Interest Cost rate % Return of good aith deposit is acknowledged this 14th da /f o ember, 1972 Respectfully submitted, Thornton, Farish & Gauntt, Inc. Hendrix, Mohr & Yardley No addition, alteration or enlargement to this bid form will be acceptable. OFFICIAL BID FORM City of Fairhope City Hall Fairhope, Alabama Gentlemen: For $875,000 principal amount of Water, Gas and Sewer Revenue Bonds, Series 1972 of the City of Fair - hope, Alabama, described in the attached Official Notice of Sale which official Notice of Sale is incorporated herein by reference and is made a part of this proposal, and bearing interest at the per annum rates set out eight hundred and sixty-three thousand below (payable semiannually) we offer to pay, _twelve- and _ Dollars ($ 863, 012. 50 —) plus accrued interest thereon from December 1, 1972, to the date of delivery. Principal Coupon Principal Coupon Maturity Amount Rate Maturity Amount Rate 6.25 4.60 1973 $ 20,000 % &--25C 1984 $ 40,000 % 1974 20,000 % 1985 45,000 4.75 % 1975 20,000 '% 1986 45,000 4.90 % 1976 25,000 6.25—% 1987 50,000 _5.00 % 1977 25,000 5.50 % 1988 50,000 5•20 % 1978 25,000 �% 1989 50,000 5.30 % 1979 30,000 5.50 % 1990 55,000 5.40 1980 30,000 5.50 % 1991 55,000 5. 00 % 1981 35,000 5.50 % 1992 60,000 5.00 % 1982 35,000 5.50 % 1993 60,000 5.00_%a 1983 40,000 4,50 % 1994 60,000 5.00 % In accordance with the terms of the Official Notice of Sale, we enclose herewith, as a good faith deposit, a certified or cashier's check payable to the order of the City, in the amount of $17,500. The undersigned hereby acknowledges receipt of a copy of the Official Notice of Computation of Net Interest Cost (For information only —not consti- tuting part of the bid) Total Coupon Interest Cost $ 609, 597. 50 Plus Discount 11, 988.00 Less Premium — Net Interest Cost $ 621 , 585. 50 Average Annual Net Associates Merrill Lynch, Pierce, Hugo Marx & Company Berney Perry & Company, Joe Jolly & Co,Inc. 1 Fenner & Smith, Inc. Inc. No addition, alteration or enlargement to this bid form will be acceptable.