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HomeMy WebLinkAbout11-27-1972 Regular Meeting4 STATE OF ALABAMA sr w i r ' COUNTY OF BALDWIN r The City Council. of the City of Fairhope, Alabama, met in regular ,session at the City Administration Building, 387 Fbirhope Avenue at 7:00 P.M. -with the following members presents Mayor James P. Nix, Councilmen: David E, Bishop, H. G. Bishop, Sam E. Boa, 011ie E. Deese and Barney L. Shull. Minutes of the previous regular meeting were approved. Motion by Councilman H, G. Bishop seconded by Councilman Barney Shull that Ordinance No. 498, An Ordinance Amending Zoning Ordin- anoe No, 295, Section 13, by rezoning Flair Harbor Marina property to B-39 introduced at the regular meeting of November 139 19729 b adopted as introduced. Motion carried unanimously. This being date set for public hearing on rezoning from R-1 and Lot.B of Gables Subdivision, no protests being heard, Councilman Boa introduced the following Ordinance: ORDINANCE No. 499 AN ORDINANCE AMENDING ZONING ORDINANCE N0. 295, SECTION 139 DISTRICT BOUNDARIES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAIRHOPE, ALAS that Section 139 District Boundaries of Zoning Ordinance No. 295 be amended by rezoning the following described property from R-1 and 13..1 to B-2: Lot B of Gables Subdivision located in the N.W. j of the S/WJ of the S/W * of Sec. 169 T6 S, R2E, on the South- east corner of Greeno Road and Morphy Avenue. ` Motion by Councilman Shull seconded by Councilman Box that ally ruVes governing the Council which might, unless. suspended, prevent the passage and adoption of the Ordinance at this meeting, be and the same are hereby suspended for the purpose of permitting t said Ordinance to -be finally passed and adopted at this meeting, the question was put before the Council and on roll call the vote was as follows= Yea: Councilmens David Bishop, H, G, Bishop, Sam E, Boa, 011ie Be Deese and Barney L, Shull. Nays None. Motion adopted by unanimous vote, Councilman Box moved that said Ordin- ance No. 499 be finally passed and adopted as introduced, Council man Shull seconded the motion, The question was put before the Council and on roll call the vote was as follows: Yeas Counoilmen David Bishop, H, G. Bishop, Sam E, Box, 011ie E, Deese and Barney L. Shull, Nays: None, Ordinance No, 499finally passed and adopt ed by unanimous vote. Mr, H, S, St, John, Engineer, met with the, Council and a group of local businessmen to discuss Electric Rate Adjustment. No action taken at this time. Mr. John Parker, Chairman of the Planning and Zoning Commission, requested that the Council reconsider action taken on Planning Consultant. It was requested that Mr, Parker present proposals to Council at their meeting of January 229 1973• Motion by Councilman Shull seconded by Councilman Ed Bishop that the City approve plat of proposed change in right -of -way on Morphy Avenue as presented by Mr. Claude Arnold, Engineer. Moti carried. Councilman Boa introduced the following Ordinance No. 496 as amended: ORDINANCE No, 496 AN ORDINANCE TO ESTABLISH A MANDATORY RETIREMENT FOR ALL SALARIED CITY EMPLOYEES AT AGE SI#TY-FIVE (65)9 EXCEPTING THEREFROM ALL ELECTED OFFICIALS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAIR - HOPE, ALABAMA AS FOLLOWST SECTION 1 That there is hereby established a mandatory retirement for'all aried employees, excepting -therefrom electet officials, at the age of sixty-five(65) years, or within thirty days thereafter. SECTION 2. That whenever any salaried city employee reaches the age of sixty-five years, and is retired, the said salaried employee must meet all of the requirements of the presn retirement system prior to the termination of his or her employ- ment with the City of ft1rhope. SECTION 2L Any and all ordinances or resolutions in conflict herewith are hereby repealed. SECTION 4. Should any section or provision of this Ordinance be held to be invalid by any Court of competent jurls- diotion, such holding shall not affect the validity of any other Section or provision of this Ordinance, which is not of itself Invalid* SECTION, Nothing contained herein,, shall keep a City employee who has reached the.age of sixty-five, and does not wish to retire, from entering into a separate -employment contract with the City and work under the separate contract and under the retire ment system* Fd. THIS ORDINANCE shall become effective on January 19 197: after due passage, enrollment .and publication as,required by law. ADOPTED this tho � -, y o:' Jl : 19?2. . UTA, - Attest: - ff J Lotion by Councilman Boa seconded by Councilman -Deese that Mayor Nix be reappointed to the Pairhope Airport Board for a two year term. Notion carried. This being date set for opening bids on &,Chipper, the following bids were received: Tieco Gulf C=t, Inc. Pensacola, Fla. $49495,00 The Scott Company, Inc. Pensacola, Fla. 49918,80 Vermeer Sales and Service Birmingham, Ala. 39975.00 Joe Money Machinery Co., Inc. , Birmingham, Ala. 39 944, 00 Mitts and Merrill, Inc. Saginaw, Mich. 3015.00 Motion by Councilman Box seconded by Councilman Ed Bishop that City Superintendent and Purchasing Agent be authorized to check bids and accept lowest bid.that meets specifications. Motion carried. This being date set for opening bids on load of gas pipe, the following bids were received$ Consolidated Pipe and Supply Co. 3/4" - $20•75 1" - 27-50 2" - 55•00 2% - 15 days. L. B. Poster Company 3/4" - #20.75 ' 1" - 27.50 2" - 55.00 2,% - 10 days. Motion by Councilman Box that the City accept bid of L. Be Foster Company for load of gas pipe. Motion seconded by Councilman Shull and carried. Motion by Councilman Ed Bishop seconded by Councilman Box that City ask for bids on 2 loads of poles. Motion carried. The following Ordinance was introduced in writing by Councilman Bishop and read in full by the Clerk$ EXTRACTS FROM THE MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF FAIRHOPE The City Council of the City of Fairhope, Alabama, convened at 7:00 o'clock P.M on the 27th day of November, 1972, in the City Hall in the City of Fairhope, the regular time and place for the holding of such meetings. 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 declared all members (a quorum) present, and the meeting open for the transaction of business. The minutes of the last meeting were read and approved. Thereupon, the following ordinance was introduced in writing by Mr. H. G. Bishop and read in full by the Clerk: -0, AN ORDINANCE AUTHORIZING THE ISSUANCE OF ADDITIONAL BONDS UNDER THE TRUST INDENTURE BETWEEN THE BOARD AND THE MERCHANTS NATIONAL BANK OF MOBILE, DATED DECEMBER 1, 19610 TO -WIT, $875,000 PRINCIPAL AMOUNT OF WATER, GAS AND SEWER REVENUE BONDS, SERIES 1972, DATED DECEMBER 1, 1972; AUTHORIZING THE EXECUTION AND DELIVERY OF A SUPPLEMENTAL INDENTURE WITH RE- SPECT TO SUCH ADDITIONAL BONDS; REQUESTING THE TRUS- TEE TO AUTHENTICATE SAID ADDITIONAL BONDS; MAKING CERTAIN RECITALS IN CONNECTION THEREWITH AS REQUIRED BY THE AFORESAID TRUST INDENTURE; AND PROVIDING FOR THE EXECUTION, SALE AND DELIVERY OF SAID ADDITIONAL BONDS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAIRHOPE, ALABAMA as follows: Section 1. The City of Fairhope, Alabama. (herein called the "City") hereby authorizes, adopts and approves a Supplemental Indenture in substantially the following form; that the Mayor is hereby authorized and directed in the name and on behalf of the City to execute, acknowledge and deliver a Supplemental Indenture substantially in the following form; and the City Clerk is hereby authorized and directed to affix thereto the seal of the City and to attest the same: SUPPLEMENTAL INDENTURE dated as of December 1, 1972 (herein called the "1972 Supplemental Indenture") between THE CITY OF FAIRHOPE, a municipal corporation under the laws of the State of Alabama, party of the first part (hereinafter some- times called the "City") and THE MERCHANTS NATIONAL BANK OF MOBILE, a national banking association, party of the second part (hereinafter sometimes called the "Trustee"). R E C I T A L S The City has heretofore made, executed and delivered to the aforesaid bank, as Trustee, its certain Trust Indenture dated as of the first day of December, 1961, which said Trust Indenture is therein and will herein be sometimes called the "Indenture". The Indenture provides for the issuance of additional Bonds thereunder payable from the revenues of the City's water- works and sanitary sewer system and its national gas distribu- tion system (herein called the "Systems") and secured by a pledge and assignment of said revenues equally and ratably with the Water, Gas and Sewer Revenue Bonds, Series 1961, of the City dated December 1, 1961, heretofore issued under the Indenture and now outstanding (herein called the "Series 1961 Bonds"). No additional Bonds have heretofore been issued under the In- denture. The City proposes to issue additional Bonds under the Indenture in the principal amount of $875,000 to be known as its Water, Gas and Sewer Revenue Bonds, Series 1972 (herein called the "Series 1972 Bonds") for the purpose of acquisition, by construction or otherwise, of capital improvements to the Systems. A certified copy of the proceedings taken by the City Council of the City authorizing the sale and issuance of the Series 1972 Bonds and the execution and delivery of this 1972 Supplemental Indenture has been delivered to the Trustee. The ordinance referred to in subsection (c) of Section 7.2 of the Indenture and the certificates referred to in subsections (d) and (e) of said Section 7.2 have been delivered to the Trustee, and the engineer and the certified public accountants which exe- cuted said certificates are acceptable to the Trustee. The opin- ion referred to in subsection (f) of Section 7.2 of the Inden- ture has been delivered to the Trustee, and the counsel which rendered said opinion is .acceptable.to the Trustee. All other acts, conditions and things required to happen, exist and be performed precedent to and in the issuance of the Series 1972 Bonds and in the execution and delivery of this 1972 Supple- mental Indenture have happened, exist and have been performed in order to make the Series 1972 Bonds, when executed, authen- ticated and delivered, valid obligations of the City, and in order to make this 1972 Supplemental Indenture a valid pledge of the revenues for the security of the Bonds in accordance with its terms. The Trustee accordingly has accepted the trusts created by this 1972 Supplemental Indenture and as evidence thereof has joined in the execution thereof. NOW, THEREFORE, THIS 1972 SUPPLEMENTAL INDENTURE WITNESSETH: Section 1. Pledge. In order to secure payment of the principal of and interest on the Series 1972 Bonds herein de- scribed according to their true intent and meaning and to secure the performance and observance of all covenants and conditions therein and herein contained and to declare the terms and con- ditions upon and subject to which said Bonds are and are intended to be issued, held, secured and enforced, and for and in conside- ration of the premises and of the purchase and acceptance of the Series 1972 Bonds by the holders thereof from time to time and the acceptance by the Trustee of the trusts hereby created, and for other good and valuable considerations, the receipt of which are hereby acknowledged, the City has executed and delivered -2- this 1972 Supplemental Indenture for the equal and proportionate benefit and security of all present and future holders of the Series 1972 Bonds and appurtenant coupons issued or to be issued under and secured by this 1972 Supplemental Indenture and for the security and enforcement of the payment of the principal of and interest upon said Bonds when payable, according to the true intent and meaning thereof and of this 1972 Supplemental Indenture and of the Indenture, and to secure the performance of and compliance with the covenants, terms and conditions of the Indenture and of this 1972 Supplemental Indenture, without preference, priority or distinction as to lien or otherwise of any one Bond or coupon or any series of Bonds or appurtenant coupons over any other by reason of priority in issue or negotia- tion thereof or otherwise, so that each and all Bonds and coupons issued under the Indenture and under this 1972 Supplemental In- denture shall have the same right, lien and privilege under the Indenture and this 1972 Supplemental Indenture and shall be equally and ratably secured thereby as if all of said Bonds and coupons had been made, issued and negotiated simultaneously with the delivery of the Indenture, and the City has pledged and does hereby pledge with the Trustee the revenues derived from the operation of the Systems, subject only to the prior pledges thereof as described in Section 2.1 of the Indenture. Section 2. Statutory MortgaEe Lien. Pursuant to the pro- visions of Subdivision 3 of Article 2 of Chapter 6 of Title 37 of the Code of Alabama of 1940, as amended, the City has in the Indenture created and does hereby create a statutory mortgage lien, in favor of the holders of all Bonds and the coupons issued under the Indenture on the Systems. The said statutory mortgage lien is for the benefit of the holders of all Bonds and the cou- pons, without preference or priority of one Bond over another; provided, however, that said statutory mortgage lien shall not be construed to give any authority to compel the sale of ei- ther of the Systems or any part of either thereof at a fore- -3- closure sale, and no foreclosure proceedings shall ever be had with respect to either of the Systems or any part of either thereof. There shall be filed for record in the office of the Judge of Probate of the county in which the Systems are located, promptly following the issuance of the Series 1972 Bonds, a notice containing a brief description of the Systems and of the Series 1972 Bonds, an appropriate reference to the Inden- ture, and a declaration that said statutory mortgage lien has been created upon the Systems for the benefit of the holders of the Bonds issued under the Indenture and the interest cou- pons applicable thereto. The Mayor or other chief executive officer of the City and the City Clerk of the City are hereby authorized and directed so to file and execute such notice in the name and behalf of the City and to affix the seal of the City thereto, and the City Clerk of the City is hereby authorized and directed to attest said seal. The City represents that the statutory mortgage lien is and will be subject only, with respect to the water and sewer system, to the lien of the under- lying indentures and, with respect to the gas system, to the lien of the underlying 1958 Indenture, defined in the Indenture. Section 3. Authorization, Principal Amount, Designation and Purpose of Series 1972 Bonds. The total principal amount of the Series 1972 Bonds which may be issued is limited to $875,000. The Bonds are designated Water, Gas and Sewer Revenue Bonds, Series 1972. The Series 1972 Bonds are issued for the acquisi- tion, by construction or otherwise, of the following capital improvements to the Systems, (1) extensions of the sewer sys- tem to areas in the north, east, and south sections of the City to add new sewer customers to the system not now being served, consisting of collection mains, trunk sewers, laterals, force mains, pumps, manholes, and related facilities, (2) a new sewage treatment facility of the activated sludge type, with various tanks, settling basins, chlorination basins, outfall lines, -4- and related facilities so arranged that the plant can be operated as an extended aeration plant for flows up to approximately 1.2 MOD and then converted to a step aeration, aerobic digestion plant for flows up to 2.0 MOD, and (3) an additional source of water supply for the water system consisting of two new wells east of the City limits and facilities to connect these wells with the existing water system, including a 14 inch transmis- sion main, pumps and water treatment, and related facilities. Section 4. Date, Denomination, Numbers, Maturities and Place of Payment of Series 1972 Bonds. The Series 1972. Bonds shall be dated December 1, 1972, shall be in the denomination of $5,000 each, shall be numbered from 1 to 175, inclusive, and shall mature on December 1 in years and amounts as follows: Aggregate Principal Year of Maturity Amount Maturing 1973 $20,000 1974 20,000 1975 209000 1976 252,000 1977 25,000 1978 25,000 1979 30,000 1980 30,000 1981 35000 1982 359000 1983 40,000 1984 40,000 1985 45,000 1986 45000 1987 50,000 1988 50,000 1989 50,000 1990 55000 1991 55,000 1992 60,000 1993 600000 1994 60,000 The principal of and interest on the Series 1972 Bonds shall be payable at the principal office of The Merchants National Bank of Mobile in the City of Mobile, Alabama. Section 5. Interest Rates. The Series 1972 Bonds shall bear interest payable semiannually on June 1 and December 1 in each year at the following per annum rates: 4.50% for Bonds maturing in each of the years 1973 through 1982; 4.55% for Bonds maturing in 1983; 4.70% for Bonds maturing in 1984; 4.85% for -5- 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 each of the years 1992 and 1993; and 5.00% for Bonds maturing in 1994. Section 6. Redemption Provisions. Those of the Series 1972 Bonds having stated maturities in 1983 or thereafter may be called for redemption prior.to their respective maturities, at the option of the City on December 1, 1982, and on any in- terest payment date thereafter as a whole or in part, and if in part then in the inverse order of maturities and identifica- tion 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 interest 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 maturing in 1987 and 1988, and 2% on Bonds matur- ing 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 redemption premium on Bonds maturing in the years 1991 through 1994. Section 7. Form of Bond, Coupons; and Trustee's Certifi- cate. The form of the Series 1972 Bond and coupons, and the Trustee's authentication certificate applicable thereto, shall be substantially in the respective forms thereof set forth in the Indenture, with such insertions, omissions and other varia- tions as may be necessary to conform to the provisions of the Indenture and this 1972 Supplemental Indenture. Section 8. Execution of the Bonds. The Series 1972 Bonds shall be executed on behalf of the City with the facsimile sig- nature of its Mayor imprinted thereon and by its City Clerk, who shall sign each Bond by manually subscribing her signature thereon, and shall have imprinted thereon a facsimile of the corporate seal of the City. The coupons shall be executed by facsimiles of the signatures of said Mayor and City Clerk. Such facsimiles shall have the same force and effect as if the Mayor and City Clerk had manually signed each of the coupons, as if the Mayor has manually signed each Bond, and as if the corporate seal had been manually impressed on each Bond. In case any offi- cer whose signature or a facsimile of whose signature shall appear on the Bonds or Coupons shall cease to be such officer before the authentication and delivery of such Bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he had remained in office until authentication and delivery. Section 9. Delivery of the Bonds and Disposition of Proceeds. The Series 1972 Bonds shall be delivered to the pur- chasers thereof upon the payment by said purchasers of the sales price thereof. The amount received as accrued interest thereon shall be deposited in the bond fund established under the In- denture, and the balance of said proceeds shall be deposited by the City in a bank which is a member of the Federal Reserve System and applied solely for the purposes of paying the cost of the capital improvements referred to in Section 3 hereof (including payment and retirement of the City's Temporary Water, Gas and Sewer Revenue Anticipation Notes issued for such purpose as authorized by ordinance adopted on October 30, 1972, and ex- penses incurred in the issuance and sale of the Series 1972 Bonds). All deposits of Bond proceeds shall be secured by United States Government Securities having an aggregate market value at least equal to the sum on deposit. Section 10. Maximum Required Reserve; Covenants. As required by the Indenture, the City Council has computed the amount of the maximum required reserve that will be applicable immediately following the issuance of the Series 1972 Bonds to be $145,847.50 • The City hereby covenants and agrees to continue to operate the Systems, to maintain the funds, to collect the revenues of the Systems and to apply the same as provided in the Indenture and to make the additional payments -7- into the bond fund and the reserve fund required to be made by the Indenture by reason of the issuance of the Series 1972 Bonds. Section 11. Annual Audit. Within ten days following the receipt of each annual audit report provided for in Sec- tion 10.6 of the Indenture, the Board shall furnish a copy thereof to the original purchasers of the Series 1972 Bonds. Section 12. Rates. The City covenants and agrees that it will at all times maintain such rates and charges for water, sewer and gas service furnished by the Systems and make col- lections from the users thereof in such manner as shall be suf- ficient to provide for payment of the principal of and the in- terest on all Bonds issued under the Indenture, including the Series 1961 Bonds and the Series 1972 Bonds, as the said prin- cipal and interest become due, to create a bond and interest redemption fund therefor, to provide for the payment of the expenses of administering and operating the Systems and main- taining them in good repair and working order, to build up a reserve for improvements, betterments and extensions to the Systems, other than those necessary to maintain them in good repair and working order as hereinabove provided. The City will from time to time make such increases and other changes in such rates and charges as may be necessary to produce said amounts. Section 13. Covenants under the Indenture. All cove- nants, provisions, terms, conditions, rights and remedies set forth in the Indenture and each and every section and sentence thereof are hereby ratified and reaffirmed and are hereby adopted as being applicable to and shall for any purpose apply to the Series 1972 Bonds authorized hereunder as if such Bonds had been originally issued under the Indenture. Section 14. Definitions. All terms contained in this 1972 Supplemental Indenture which are defined in the Indenture shall for all purposes hereof have the same meaning given such terms in the Indenture. Section 15. The Trustee. The Trustee assumes no duties, responsibilities or liabilities by reason of this 1972 Supple- mental Indenture other than as set forth in the Indenture, and this 1972 Supplemental Indenture is executed and accepted by the Trustee subject to all the terms and conditions of the ac- ceptance of trust under the Indenture as if such terms and con- ditions were herein set forth at length. IN WITNESS WHEREOF, the City has caused these presents to be executed in its corporate name and in its behalf by its Mayor and its corporate seal to be hereunto affixed and attested by its City Clerk, and the Trustee, to evidence its acceptance of the trusts hereby created, has caused these presents to be executed in its corporate name and in its behalf and its corpo- rate seal to be hereunto affixed and attested by its officers, all of whom are hereunto duly authorized by proper corporate action. CITY OF FAIRHOPE, ALABAMA By � Its Mayor S E A L Attest: City Clerk S E A L Attest: Its: THE MERCHANTS NATIONAL BANK OF MOBILE By Its -9- STATE OF ALABAMA ) BALDWIN COUNTY ) I, the undersigned, a Notary Public in and for said County in said State, hereby certify that , whose name as Mayor of the City of Fairhope, a municipal corporation under the laws of the State of Alabama, is signed to the fore- going Supplemental Indenture and who is known to me and known to be such officer, acknowledged before me on this day that, being informed of the contents of said Indenture, he, in his capacity as such officer and with full authority, executed the same voluntarily for and as the act of said corporation. Given under my hand and official seal, this day of , 1972. Notary Public NOTARIAL SEAL My commission expires: STATE OF ALABAMA ) MOBILE COUNTY ) I, the undersigned, a Notary Public in and for said County in said State, hereby certify that , whose name as of The Merchants National Bank of Mobile, a national banking association, is signed to the fore- going Supplemental Indenture and who is known to me and known to be such officer, acknowledged before me on this day that, being informed of the contents of said Indenture, he, in his capacity as such officer and with full authority, executed the same voluntarily for and as the act of said association. Given under my hand and official seal, this day of , 1972. Notary Public NOTARIAL SEAL My commission expires: Section 2. That all of the Series 1972 Bonds and the appurtenant coupons described in the aforesaid Supplemental Indenture shall be executed by the officers of the City in the manner provided in said Supplemental Indenture, and said offi- cers be and they hereby are authorized and directed to so exe- cute and seal said Bonds and the appurtenant coupons. Section 3. The Series 1972 Bonds have been and hereby are awarded and ordered sold and delivered to Sterne, Agee & Leach, Inc. and Shropshire, Frazer & Co. at the sales price of C$256�,687.50 lus accrued interest for Bonds maturing in and prior to 1982 and par plus accrued interest for Bonds maturing in and after 1983. The Merchants National Bank of Mobile, as Trustee under the Indenture and the Supplemental Indenture, be and it hereby is requested, in accordance with the provisions of Section 7.2 of the Indenture, to authenticate each of the aforesaid Series 1972 Bonds and deliver said Bonds to the pur- chasers thereof upon the payment by said purchasers of the pur- chase price therefor. Section 4. The Mayor, the City Clerk and the Treasurer of the City, and each of them, are hereby authorized to exe- cute, for and in the name of the City, such closing papers making such representations as may be required to demonstrate the legality of the Indenture, the Supplemental Indenture and the Bonds and the execution, certification and delivery thereof and the absence of any pending or threatened litigation relat- ing thereto. The receipt of the Treasurer shall be full ac- quittal to the purchaser for the purchase price of any Bonds. The Treasurer shall nevertheless hold in trust and apply the proceeds of the sale of the Bonds as provided in the Supple- mental Indenture. Section 5. The City Council, upon evidence duly submitted to and considered by it, does hereby find and determine and the City Council does hereby recite as follows: (a) The City is not at this time in default under the Indenture and no such default is imminent; (b) The number and series designation of the additional Bonds proposed to be issued are set forth in the Supplemental Indenture adopted in this ordinance; (c) The person or persons to whom the additional Bonds authorized by this ordinance shall be delivered are as set forth in Section 3 of this ordinance; (d) The sales price of the Series 1972 Bonds is as set forth in Section 3 of this ordinance; (e) No additional Bonds have heretofore been issued by the City under the Indenture; (f) A list of all of the underlying securities (as de- fined in the Indenture) that remain outstanding is as follows: $ 93.000_00 Mortgage Water and Sewer Revenue Bonds dated July 1, 1950 of the Water Works and Sewer Board of the City of Fairhope (the Board); $-K_nnn_nn Water and Sewer Revenue Bonds, Second Se- ries, dated July 1, 1953 of the Board; and $ 830,000.00 Water, Sewer and Gas Revenue Refunding War- rants, Series 1958, dated December 1, 1958 of the City; (g) The estimated cost of said improvements, enlarge- ments and extensions to the Systems is $8662687.50; (h) The determinations as to the respective amounts that will constitute reasonable reserves for the purposes referred to in Clauses (c) and (d) of Section 327 of Title 37 of the Alabama Code and as to the respective times that will consti- tute reasonable periods within which such reserves shall be built up as set forth in Section 9.8 of the Indenture are hereby adopted and ratified; and (i) A permit has been obtained from the State Board of Health with respect to the sewer system and extensions and im- provements thereto to be financed by the Series 1972 Bonds. Section 6. The Bonds are issued and this ordinance is adopted under and pursuant to the provisions of Sections 308 to 340, inclusive, of Title 37 of the Code of .Alabama of 1940, as amended, and all obligations of the City hereunder assumed are subject to the limitations prescribed in said Sections. Section 7. All terms contained in this ordinance which are defined in the Indenture shall, for all purposes hereof, have the same meaning given such terms in the Indenture. or Attest: City Clbrk It was moved by Mr. H. G. Bishou that all rules and regulations which, unless suspended, would prevent the imme- diate consideration and adoption of said ordinance be suspended, and that unanimous consent to the immediate consideration and adoption of said ordinance be given. The motion was seconded by Mr. Box and on roll call was unanimously adopted, those answering aye being: Mayor James P. Nix j 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 ordinance had been discussed and considered in full by the Council it was moved by Mr. Shull that said ordinance be now placed upon its final passage and adopted. The motion was seconded by Mr. Box . The question being put as to the adoption of said motion and the final passage of said ordinance, 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 ordinance passed and adopted as introduced and read. There being no further business to come before the meeting, it was, on motion duly made and seconded, adjourned. Minutes approved: S E A L Attest: ✓f n G� Clerk yor ouncilm4bin C uncilman