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HomeMy WebLinkAbout10-16-45~! !, ~~.~. ~~ ~, Council minutes Pulaski, Va., October 16, 1945 SPECTt~L SESSION The Council met in special session tonight at 7:30 at the %ayor~s office. There were Dr~sent: h. T. Eskri~.ge, mayor, presiding; Lottie R. Runion, Clerk; H. m. Harman, Jr. tittorney; ~. F~. G«tewood, Lirector of Public Works, and Councilmen: 0. P. Jordan, Jr., T. F. ~~irt, Howard R. Imboden~j W. F. ~~hite, F. x. Seagle, Y. R. Carper, Ire. D, bust and G. C' _ Mall. b Done. i~.L1Y lJ 1'r,J The minutes of the regular meeting held on October 2, 1945 were read and approved. ~nT.~,it aYST~ The Mayor stated that the Meeting had been called PnUPUSkU BOr~L 1~~UE pursuant to action of the Council at its regular meeting of October ~, 1945, to consider a ~~~,~~.~ for handling the proposed water bond issue for the Town of Pulaski, and other pebtinent matters. fir. L. ~. Strader, Vice-president of Scott, Horner & ~uason, znc., of Lynchburg, Virginia, was present at the meeting and explained their proposal, which carries a guaranteed bid of par for the bonds and an interest rate of 1.95 per ce~+t. after full ds~~sideration, on motion of W. F. Whii~l~, seconded by T. F. Dirt, and unanimously passed, the proposed' contract of Scott, Horner ~c mason, Znc., was accepted, and the ~-ayor and Clerk were aurthorized to execute the same on the behalf of the Town. Said contract is as follows: GOi~TRr~CT "The Homrable Mayor and S~.GI?T'I duki~i~;x members of the City Council ~~-~ON Town of Pulaski, Virginia Gentlemen: ~-e are informed that your Town has under consideration' the issuance of approximately ~p500,000 water Works Bonds. It ~s our understandir~,that the proceeds from the sale of these bo~pds Y N; will be used for the improvement and extension of the water works system. } We SSSU~1e that the bonds will be voted as we are convinced that this improvement is definitely one for the public good. Should your town accent the ttz'ms and conditions of th~s praposea agreeruent, anct ii the bona i:.~ue is not favorably voed (~~ Council Minutes contd. Pulaski, Va., Oct. 16, 1945 on at the election which will necessarily follow your town will be under no obligation whatever to us. The undersigned firm, specializing in mun pal issues, believe that they can be of value to the Town of Pulaski in the issuance of the bonds. llue to the comparatively favorable bond market now existing, we are able to make this proposal. T`he purpose of this agree~.ent is to provide the Town with a guaranteed sum to suit its requirement, being not less than ~p500,000 and not more than X550,000, to improve and extend the present water works. in order to make it unnecessary that the Town of Pulaski , hereinafter referred to as the ~'Gity", make expenditures from its general fund in anticipation of the iruprovements to the water system, the undersigned firm, hereinafter referred to as the ~~Bankers,n agree to the following conditions: I kfter execution of this agreement, the Bankers will engage a nationally known legal firm, at their own expense, to prepare the resolutions, forms and documents leading to the issuance of their final. approval. if the City shall have engaged legal counsel, the Bankers will reimburse the City ~'or its expenditures, or, assume thew, with the consent of the City and its attorney. Such legal expenses as are legitimate and necessary and approved by the Bankers,they will assume and pay. The Bankers will also pay advertising costs of legal insertions or notices required by the bond attorney. the Bankers will pay for the expense of"'~f'urnishing a fine grade of blank bonds ready for seal and signature. The Bankers agree to give the City the full benefit of experience in the arrangement of maturities, fixing of interest rate or rates, drawing the resolutions or indenture securing the issue, and agree to cooperate to the fullest degree with the City in securing the best price obtainable in the market at public sale. ~c~nt' uj X13 Council minutes contd. Pulaski, Va., Oct. 16, 1945 II i~hen the final arrangements have been made, the City wild agree to the following principles: (a} The city will promptly adopt all resolutions, or other forms required by the bona attorney for approval of the issue.' it will furnish any and all informa.tlon required by the attorneys, bankers or public, following a favorable election decision. The bonds, to be issued for additions and betterments to~the City~s water works plant or system, will constitute in the opi~llion of counsel "valid and legally binding obligations of the Town of Pulaski, and said Town of Pulaski has power and is obligat~id to levy ad valorem taxes for the payment of said bonds and the' interest thereon upon the property within said City, subject tC~~ taxation by said City, within the limits of the charter of said Town. i~hile any of said bonds remain outstandingn the City is obligated "to segregate, ana keep segregated, from other city funds, all revenues derived by it from the City's operati~l~ and ownership of` said water works plant or system, and to fix and Maintain rates to be charged water consumers at a level th~'t will produce sufficient revenues unaer the requirements of clause "bn of Section lz7 of the Constitution of Vir inia to ~' g ~, prevent said bonds being included in determining the limitation of the City to incur indebtedness, and said revenues will be applied to the extent necessary to meet the payment of the ni principal and interest on said bonds, as the same become due. r: (b} The bonds to be issued will mature serially in such;;'! annual amounts agreed upon by the City and the Bankers, to produce the best price in the market. maturities will be agre~kl on promptly upon determination of the exact amount of issue, bt~lt not before the results are known in the election to determine whether or not to purchase. till bonds will be in ~1,UUU. denominations, both princi~lal and interest payable at some bank or l'rust Company in New York,~j New York, bearing two semi-annual coupons of equal axriount. i The city and the Bankers will agree upon the terMS of t~ f issue in all respects promptly after the election. ~; ;~ ~~ Council minutes contd. i'ulaski, Va., Oet. 16, 1945 These bonds are not to be issued until of ter the engineers' report has shown satisfactory statements of earnings and tonal - tion to the City and the Bankers. TiI Both the City and the Bankers agree upon the following items governing the guarantee of a bid at public sale. (a) The net interest cost to the City will not be more than 1.95 per annum. The guarantee is stated this way in order to give the Bankers the greatest amount of freedom in arranging call prices and maturities. This means that, if the pity issues X550,000 in bonds, the interest rate or rates will average no higher than 1.95. nor such bonds as the City issues within the latitude of this agreement, the Bankers will guarantee to bid not less than par when the said bonds are offered for sale. jf the Bankers are not the purchasers of the bonds on the basis of the above mentioned guaranteed bid, the City will pay the Bankers 19~ for their services. On the other hand, if the Bankers are the successful bidders, the 1~ of the principal amount of bonds will be waived. This is the way of making the traffic bear the ~aost of the issue, wince the City gets one hundred cents in cash for each dollar of bonds issued. The City and the Bankers will exercise their best judgment about market conditions and when to bring out the bonds in order to secure the highest prices. The sale dates will be agreed upon by the City and the Bankers. This guarantee is for bonds exempt froru federal t~xata~s~~a. if any decision of the Supreme Court or other r'ederal Court places in doubt the qualification of these bonds f'or tax exemption, the bankers will have the right of renegotiation of° this kgreerient. ~uh~n the bonds are ready f'or sale, the Bankers agree to post a guaranteed check in the amount of 2,b of the principal sum of the bongs offered as evsdence of their good faith in making the guaranteed bid. Their good faith in fulfilling the other parts of the contract will be attested by the experr3itures for the printing, legal costs and preparation of prospectus, 3,n addition to their time and outer-of-pocket expenses. (cont'd) ~k ~~~ Council Minutes cont d. Pulaski, Va., Oct. 16, 1945 Respectfully submitted, SCOTT, HORNER & ~IitiSON, INC. I,YNCH:r3liRG, VZrtGINTk By: Ludwell ~. Stradgr (Siened> y.P. 1 BC s.~~iNG P ER~1T b 1 1 LIGHT ~iLLEY 2nd ~c 3rd Sts. tipproved and accepted by resolution adopted this 16th day of October, 1945, at a meeting of the duly elected officers of Pulaski, Virginia, as evidenced by the signature of the mayor: and the City clerk. ~,. T. Esk id e (C' ~nedJ~~ Mayor ~S) Lottie h. Runs n CSi~ned) City Clerk The following building permits, coming within the requirements of the ordinance were granted: To Dewey L. King for cinder block two-story dwelling and store room on the west side of Spruce St., S. E. on "Locust Hill" to cost ~3,00~~0q H. E. ~oletrane for cinder block and stucco one-story dwellingp on the east side of Pine 5t. ~. E. between maple and Jackson avenues; J. i~. Hayes for 1-1/.c story frame dwelling on the East side of Jefferson ~-ve., S. ~+. beyond 6th 5t. 5. ~~., to cost X2,000.00; George madams colored) for one-story frame dwelling on the south side of Stuart tive., S. E., between Jackson tive. and Dora Highway, "second Locust Hill", to cost ~v1200.00;' Roosevelt Mc~-ickle for 12-story cinder block and frarue dwellin~ on the south side of Clark St., between Fayette and Howard streets. S. W. to cost ~p1000.00; Ira C. Patterson for additio~l, repairs and maintenance to frame dwelling on the west side of Jefferson eve., South, at 6th St. , to cost X930.00; Charles C. 5tewart~colored) to remodel and repair frame dwelling on ~~ the west side of Yaple at. S. Y~. between Jefferson eve. and Valey St. to cost X500.00; J. 3 . ~~ilkerson dto erect a cinder block wa~l ~~~;~a~:s=tproperty on the west side of Jefferson xve. N., to costa' X100.00. ?'! ~~ h petition signed by a number of business firms ~tor ,' ;, a light in a north - south alley between second and third struts, N. E., 130 feet east and parallel to ~'ashing,ton Avenue, was presented, and on wotion duly made, seconded ann unanimously j'716 Council Minutes contd. Pulaski, Va., October 16, 1945 passed, was referred to the Light committee, with power to act. Pursuant to action of the Council at its September 4th meeting, the town attorney submitted the following resolution, which on motion of ~. ~`. 4~hite, seconded by G. C. Hall, and unanimously passed, was adopted. ,OV1itiG k'iELD 'For the purpose of making the same generally known: BE ZT RESOLVF;D by the Council of the Town of Pulaski, Virginia, the dust and legally constituted governing body of said town, that a certain airport or air field located within the County of Pulaski, Virginia, commonly known as Loving Field, is a municipal airport, that is to say the municipal airport for the said town, within the generally accepted meaning of the term; anu that the same was acquired by the said town as a municipal hirport for the said town. BF ZT FUhTi3~ti H~~ULVF;U that the Department of Highways of Virginia be and is hereby requested to erect suitable directional signs for the purpose of better marking the location of said airport." i~U.7vUtii~l- There being no further business, the Council ia~lT adjourned at 9:40 P. ~. fittest: Clerk of Council approved: Mayor 1 L''