City Council

April 25, 2022 STATE OF ALABAMA, LIMESTONE COUNTY, CITY OF ATHENS. The City Council of the City of Athens, Alabama met in regular session at the Athens Municipal Building, 200 Hobbs Street West, Athens, Alabama, on April 25, 2022 at 5:30 p.m. The meeting was called to order by Councilman Chris Seibert, President of the City Council. Upon roll call, the following were found to be present: Councilmembers Chris Seibert, Dana Henry, Harold Wales and Wayne Harper. Annette Barnes-Threat, City Clerk, was present and recorded the minutes of the meeting. Wayne Harper offered the invocation. Mayor Marks led the Pledge of Allegiance. The Chairperson stated that a quorum was present and that the meeting was open for transaction of business. The Chairperson stated that the Minutes of the April 11, 2022 City Council Meeting had been submitted for approval. Councilwoman Henry moved that the reading of the Minutes be suspended and that the Minutes be approved as recorded. The motion was seconded by Councilman Wales and was unanimously carried. The Chairperson stated that the Minutes of the April 11, 2022 City Council Work Session Meeting had been submitted for approval. Councilman Harper moved that the reading of the Minutes be suspended and that the Minutes be approved as recorded. The motion was seconded by Councilwoman Henry and was unanimously carried. Council President Seibert noted that there was a big void to fill with the absence of Councilman Frank Travis. He stated that they would be evaluating their options within the next few weeks. Mayor Marks announced the opening of the City of Athens Activity Center on May 3rd, 2022. The Mayor also announced the passing of Kathy Cothren and said that she would be missed. The Mayor noted the Relay for Life Fishing Tournament will be on May 7th and that Relay night is May 13th on the Square. Mayor Marks recognized the Mayor’s Youth Commission for picking up approximately 25 bags of litter. He also noted that Cars on the Square will be on Saturday, April 30th and that Friday’s After Five will be kicking off. The Mayor then read a proclamation for Small Business Week. Pammie Jamar, Chamber of Commerce Director, commented on how much of an impact that small businesses have on our town. Tom Todt, District Director, Alabama District Office U.S. Small Business Administration was also in attendance for the presentation of the proclamation and thanked the City Council for their leadership. Councilman Wales expressed his sorrow for the loss of Kathy Cothren. Mr. Wales stated that Kathy was always ready to smile and help anyone that she could. Councilwoman Henry remarked that she would be leaving the meeting to attend a dinner at Athens State for a presentation of a check from Sally Cowart Brock to the Athens High School Band. Council President Seibert echoed all of the comments regarding the passing of Frank Travis and Kathy Cothren. Councilman Wales introduced the following resolution: RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATHENS, ALABAMA, to reappoint Beverly Malone to the Board of Education for a five year term, expiring on May 14, 2027. The motion was seconded by Councilwoman Henry and was unanimously carried. Councilman Wales introduced the following resolution: RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATHENS, ALABAMA, to approve the following travel/education expenses for the City Clerk’s office:  Lisa Brooks Attending Alabama Municipal Revenue Officers’ Training Tuscaloosa, AL April 6 - 8, 2022 $ 564.96 Lisa Brooks Mileage - Business License Field Audits April 2021 through October 2021 $ 142.35 The motion was seconded by Councilwoman Henry and was unanimously carried. Councilman Wales introduced the following resolution: RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATHENS, ALABAMA, to approve the following travel/education expenses for the Municipal Court: Judge Donald Mansell Attending Spring Municipal Law Conference Birmingham, AL March 31 – April 1, 2022 $ 336.70 The motion was seconded by Councilwoman Henry and was unanimously carried. Councilman Wales introduced the following resolution: RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATHENS ALABAMA, to set a Public Hearing for the regular meeting at 5:30PM on May 23, 2022 to review the request of OF&C Enterprises, Inc. to rezone +/- 61.8 acres, located at 2088 Lindsay Lane, on the west side of Lindsay Lane S, east of Interstate 65 (across from the Links at Canebrake) from C-PUD (Conventional Planned Unit Development) to R-1-3 (High-Density Single-Family District) WITHIN THE CORPORATE LIMITS OF THE CITY OF ATHENS. (Johnson Property) The motion was seconded by Councilwoman Henry and was unanimously carried. Councilman Wales introduced the following resolution: RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATHENS ALABAMA, to set a Public Hearing for the regular meeting at 5:30PM on May 23, 2022 to review the request of J.C Development Company, LLC to rezone +/- 11.6 acres, a portion of the property, located north of Athens-Limestone Dr. from R-1-3 (High Density Single Family Residential District) to R-1-5 (Single Family Townhouse Attached Residential District) WITHIN THE CORPORATE LIMITS OF THE CITY OF ATHENS. (Swint Townhomes) The motion was seconded by Councilwoman Henry and was unanimously carried. Councilman Wales introduced the following resolution: RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATHENS ALABAMA, to set a Public Hearing for the regular meeting at 5:30PM on May 23, 2022 to review the request of Matt Haney & Keith Haney to annex +/1 ¾ acres of property located at 18025 Nuclear Plant RD, into the City limits of Athens AL. 35611, and zone the property: B2 (General Business District). (GK Enterprises Inc.) The motion was seconded by Councilwoman Henry and was unanimously carried. Councilman Wales introduced the following resolution: RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATHENS, ALABAMA, to authorize the Mayor to issue a purchase order to Wastequip in the amount of $27,360 for the purchase of eighteen 8 cubic yard standard duty front load trash containers. The containers are purchased from the Sourcewell Purchasing Agreement contract number 040621-WQI. (Member # 43269) The equipment shall be Sanitation Operational Capital line item 518.85001 The motion was seconded by Councilwoman Henry and was unanimously carried. Councilman Wales introduced the following resolution: RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATHENS, ALABAMA, to authorize the Mayor to issue a purchase order to Ingram Equipment Parts in the amount of $317,835.77 for the purchase of 2023 Mack TE64R/Heil Half/Pack Commercial Front Loader. The equipment is purchased from the Sourcewell Purchasing Agreement contract number 091219-THC. (Membership # 43269) The equipment shall be funded from the Sanitation Department Capital Line Item. The motion was seconded by Councilwoman Henry and was unanimously carried. Councilman Wales introduced the following resolution: RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATHENS, ALABAMA, to approve the purchase of two (2) Land Pride bush hogs from H&R Agripower in an amount not to exceed $40,000.00. The bush hogs will be purchased from the Sourcewell Purchasing Agreement contract number 070821-LPI. (Member # 43269) The equipment shall be funded from the Street Department’s existing capital line item. The motion was seconded by Councilwoman Henry and was unanimously carried. Councilman Harper introduced the following resolution: RESOLUTION NUMBER 2022 - 1799 A RESOLUTION COMPLYING WITH THE REQUIREMENTS OF SECTION 7.2(c) OF THE TRUST INDENTURE BETWEEN THE CITY OF ATHENS AND THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., DATED AS OF JULY 1, 2017, AS SUPPLEMENTED BE IT RESOLVED by the City Council (herein called the "Council") of the City of Athens (herein called the "City"), in the State of Alabama, as follows: In order to comply with the requirements of Section 7.2(c) of that certain Trust Indenture between the City and The Bank of New York Mellon Trust Company, N.A., dated as of July 1, 2017, as supplemented by that certain First Supplemental Indenture dated as of June 1, 2020 (as so supplemented, herein called the "Indenture"), so that $35,120,000 aggregate principal amount of Water and Sewer Revenue Warrants, Series 2022, dated May 3, 2022 (herein called the "Series 2022 Warrants"), of the City may be issued as additional securities under the provisions of the Indenture, the Council does hereby adopt this resolution; request that the said bank, as trustee under the Indenture, authenticate and deliver the Series 2022 Warrants to the purchaser hereinafter named; and make the following recitals preliminary to the issuance of the Series 2022 Warrants:  the City is not at this time in default under the Indenture and no such default is imminent; the Series 2022 Warrants are to be issued by sale and none thereof is to be issued by exchange; the sale price of the Series 2022 Warrants is $34,866,890.45 (which represents an underwriting discount of $314,324.00 and net original issue premium of $61,214.45 as reflected by the prices or yields shown on the cover page of the Official Statement hereinafter referred to); (4) the person to whom the Series 2022 Warrants have been sold and shall be delivered is The Frazer Lanier Company, Incorporated, Montgomery, Alabama; (5) no securities have previously been issued by the City under the Indenture or under any indenture supplemental thereto other than (i) $18,355,000 aggregate principal amount of the City's Water and Sewer Revenue Warrants, Series 2017, dated July 27, 2017, now outstanding in the aggregate principal amount of $15,420,000, and (ii) $18,540,000 aggregate principal amount of the City's Water and Sewer Revenue Warrants, Series 2020, dated June 11, 2020, now outstanding in the aggregate principal amount of $17,950,000; and (6) the Series 2022 Warrants are being issued for the purposes of (i) refunding the City's Subordinated Water and Sewer Revenue Warrant, Series 2013-DWSRF-DL, dated February 1, 2013, presently outstanding in the principal amount of $2,640,000, (ii) refunding the City's Subordinated Water and Sewer Revenue Warrant, Series 2014-CWSRF-DL, dated May 1, 2014, presently outstanding in the principal amount of $2,080,000, (iii) providing approximately $30,000,000.00 for various capital improvements to the City's water works plant and distribution system and sanitary sewer system (the "Systems"), including, without limitation, upgrades to and rehabilitation of the Systems' largest sewer trunk line, rehabilitation of and resiliency improvements to the sewer collection system and wastewater treatment plant to minimize and manage rainwater inflow and groundwater infiltration, and acquisition and construction of new components of the Systems to extend services into growing service areas of the Systems, (iv) purchasing a municipal bond insurance policy for the Series 2022 Warrants, (v) purchasing a surety bond to fund the debt service reserve fund of the Indenture, and (vi) and paying the costs of issuing the Series 2022 Warrants. ADOPTED this 25th day of April, 2022. /s/ Chris Seibert PRESIDENT, CITY COUNCIL, CITY OF ATHENS, ALABAMA /s/ William R. Marks MAYOR, CITY OF ATHENS, ALABAMA ATTEST: /s/ Annette Barnes CITY CLERK, CITY OF ATHENS, ALABAMA The motion was seconded by Councilman Wales and was unanimously carried. Councilwoman Henry introduced the following ordinance:  ORDINANCE NUMBER 2022 - 2216 AN ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY'S $35,120,000 PRINCIPAL AMOUNT OF WATER AND SEWER REVENUE WARRANTS, SERIES 2022, DATED MAY 3, 2022 BE IT ORDAINED by the City Council (herein called the "Council") of the City of Athens (herein called the "City"), in the State of Alabama, as follows: Section Findings. After investigation duly made by it and based upon the information obtained from such investigation, the Council hereby makes the following findings and declares the following statements to be true: it is necessary and desirable to refund (i) the City's Subordinated Water and Sewer Revenue Warrant, Series 2013-DWSRF-DL, dated February 1, 2013, which is presently outstanding in the principal amount of $2,610,000 (herein called the "Series 2013 SRF Warrant"), and (ii) the City's Subordinated Water and Sewer Revenue Warrant, Series 2014-CWSRF-DL, dated May 1, 2014, which is presently outstanding in the principal amount of $2,080,000 (herein called the "Series 2014 SRF Warrant" and, together with the Series 2013 SRF Warrant, the "SRF Warrants"), which obligations are payable solely out of net revenues derived from the operation of the City's water works plant and distribution system and sanitary sewer system (herein collectively called "the Systems"); for the purpose of providing a portion of the funds necessary to refund the SRF Warrants, financing the costs of various capital improvements to the Systems, purchasing a municipal bond insurance policy for the Series 2022 Warrants hereinafter described, purchasing a surety bond to fund the debt service reserve fund under the Indenture hereinafter described and paying the expenses related to the issuance of the Series 2022 Warrants, it will be necessary that the Series 2022 Warrants be issued as authorized in this ordinance and pursuant to the applicable provisions contained in the Second Supplemental Indenture attached as Exhibit A to this ordinance; and (c) the said net revenues will, immediately following the issuance of the Series 2022 Warrants, be sufficient to make timely payment of all principal and interest on obligations of the City payable out of said net revenues, including, without limitation, the Series 2022 Warrants, the City's Water and Sewer Revenue Warrants, Series 2017, dated July 27, 2017, and the City's Water and Sewer Revenue Warrants, Series 2020, dated June 11, 2020. Section Authorization of the Series 2022 Warrants. Pursuant to the applicable provisions of the constitution and laws of Alabama, including particularly Section 11-47-2, as amended, and for the purpose of providing funds for the purposes referred to in Section 1 of this ordinance, there are hereby authorized to be issued by the City $35,120,000 aggregate principal amount of its Water and Sewer Revenue Warrants, Series 2022 (herein called the "Series 2022 Warrants"), under the terms, conditions and provisions set out in the Second Supplemental Indenture (herein called the "Second Supplemental Indenture") authorized in Section 6 of this ordinance. All of the provisions thereof respecting the Series 2022 Warrants are hereby adopted as a part of this ordinance. Section Source of Payment of the Series 2022 Warrants and Pledge Therefor. The obligation evidenced and ordered paid by the Series 2022 Warrants shall be a limited obligation of the City payable solely out of the revenues from the operation of the Systems as specified in the Second Supplemental Indenture, and shall not constitute a general obligation of the City or be subject to any charge on or against its general funds, its taxing powers, or its constitutional debt limit. Section Series 2022 Warrants to Constitute Additional Warrants Issued Under the Indenture Covering the Systems. The Series 2022 Warrants shall be issued as additional securities under the reserved power contained in Section 7.2 of that certain Trust Indenture between the City and The Bank of New York Mellon Trust Company, N.A., dated as of July 1, 2017, as supplemented by that certain First Supplemental Indenture dated as of June 1, 2020 (as so supplemented, herein called the "Indenture"), and shall be entitled to and shall have the pledges and other rights and privileges accorded to the securities issued under that document and each supplement thereto, including specifically (but without limiting the generality thereof) the pledge made in the Indenture for payment of the principal of and interest on all securities issued thereunder on a parity with all other securities that may at any time be issued pursuant to its provisions.  Section Resolution Complying With the Requirements of Section 7.2(c) of the Indenture. In order to comply with the requirements of Section 7.2(c) of the Indenture preliminary to the issuance of the Series 2022 Warrants as additional securities thereunder, the Council has adopted, at the same meeting at which this ordinance is adopted, a resolution containing the recitations required in Section 7.2(c) of the Indenture to be made by the City. Section Authorization of Second Supplemental Indenture. The Mayor of the City is hereby authorized to execute and deliver, in the name and behalf of the City, the Second Supplemental Indenture in the form attached as Exhibit A to and constituting a part of this ordinance, and the City Clerk is hereby authorized and directed to affix thereto and attest thereon the corporate seal of the City. Upon full execution of the Second Supplemental Indenture, the Mayor is authorized and directed to deliver it to the trustee thereunder. All provisions of the Second Supplemental Indenture are hereby adopted as a part of this ordinance to the same extent as if they were set out in full herein. Section Sale of the Series 2022 Warrants; Delivery Thereof and Use of Proceeds Therefrom. The Series 2022 Warrants are hereby sold to The Frazer Lanier Company, Incorporated (herein called the "Underwriter"), at a purchase price equal to $34,866,890.45 (which represents an underwriting discount of $314,324.00 and net original issue premium of $61,214.45, allocated among the various maturities as reflected by the prices or yields shown on the cover page of the Official Statement hereinafter referred to). The Mayor and the City Clerk are each hereby authorized to execute a purchase contract with the Underwriter evidencing said sale, and all such actions heretofore taken by such officers are ratified and confirmed in all respects, and the said officers are further directed to consummate the execution, sealing and attestation of the Series 2022 Warrants and to deliver them to the said purchaser upon payment to the City of the purchase price therefor. Simultaneously with such delivery, the City Treasurer is authorized and directed to pay the proceeds from the said sale to the Trustee who shall apply them in the manner and for the purposes set out in Section 2.5 of the Second Supplemental Indenture. Section Ratification of Preliminary Official Statement; Authorization of Official Statement. The action of the Underwriter in circulating a Preliminary Official Statement with respect to the Series 2022 Warrants in the form presented to the meeting at which this ordinance is adopted (which form shall be attached to the minutes of such meeting as Exhibit B thereto and which is hereby adopted in all respects as if set out in full in this ordinance) is hereby ratified, approved and confirmed in all respects. The Mayor is hereby authorized to execute for and in behalf of the City an Official Statement with respect to the Series 2022 Warrants in substantially the form of the Preliminary Official Statement, with such changes necessary to reflect the terms of the sale of the Series 2022 Warrants. Section Authorization of Continuing Disclosure Agreement. In order to assist the Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission, the Council hereby authorizes and directs the Mayor to execute and deliver, for and in behalf of the City, a Continuing Disclosure Agreement in substantially the form presented to the meeting at which this ordinance is adopted (which form shall be attached as Exhibit C to the minutes of the meeting at which this ordinance is adopted and which is hereby made a part of this ordinance as if set out in full herein), and hereby authorizes and directs the City Clerk of the City to affix to the Continuing Disclosure Agreement the seal of the City and to attest the same. Section Compliance with Certain Requirements of the Code. The City will comply with all conditions to and requirements for the exemption from gross income for federal income taxation of the interest income on the Series 2022 Warrants imposed by Section 103 of the Internal Revenue Code of 1986, as amended (herein called the "Code"). Without limiting the generality of the foregoing, the City will not apply the proceeds from the Series 2022 Warrants in a manner that would cause any of the Series 2022 Warrants to be a "private activity bond" within the meaning of Section 141(a) of the Code, and the City will comply with the requirements of Section 148 of the Code in order that the Series 2022 Warrants will not be "arbitrage bonds" within the meaning of said Section 148. Section Call for Redemption. The City hereby calls the Series 2013 SRF Warrant for redemption on August 15, 2022, and the Series 2014 SRF Warrant for redemption on February 15, 2024, and hereby directs The Bank of New York Mellon Trust Company, N.A., as paying agent therefor, to give appropriate notice of said redemption, and, in connection therewith, the Council finds and states that the City is not in default under the Ordinance of the City adopted by the Council on January 28, 2013, or the Ordinance of the City adopted by the Council on May 12, 2014, pursuant to which the Series 2013 SRF Warrant and the Series 2014 SRF Warrant, respectively, were issued. The Council hereby authorizes and directs the Mayor to execute and deliver, for and in behalf of the City, an Escrow Trust Agreement in substantially the form presented to the meeting at which this ordinance is adopted (which form shall be attached as Exhibit D to the minutes of the meeting at which this ordinance is adopted and which is hereby made a part of this ordinance as if set out in full herein), and hereby authorizes and directs the City Clerk of the City to affix to the said Escrow Trust Agreement the seal of the City and to attest the same. Section Insurance Agreement. The actions of the Mayor and City Clerk heretofore taken with respect to the procurement of municipal bond insurance policies for the Series 2022 Warrants and for the debt service reserve fund of the Indenture are hereby ratified and confirmed in all respects. The Council hereby authorizes and directs the Mayor to execute and deliver, for and in behalf of the City, an Insurance Agreement in substantially the form presented to the meeting at which this ordinance is adopted (which form shall be attached as Exhibit E to the minutes of the meeting at which this ordinance is adopted and which is hereby made a part of this ordinance as if set out in full herein), and hereby authorizes and directs the City Clerk of the City to affix to the said Insurance Agreement the seal of the City and to attest the same. Section Additional Documents and Actions Authorized. The Mayor and the City Clerk, or either of them, are each hereby authorized and directed to execute such other documents or certificates necessary in order to carry out the transactions contemplated by this ordinance and the Indenture, and all such actions heretofore taken by the Mayor or City Clerk or any other officer or agent of the City are hereby ratified and confirmed in all respects. The City understands that one of the principal inducements to the purchase of the Series 2022 Warrants by the purchaser thereof is that the interest on the Series 2022 Warrants be and remain exempt from federal income taxation. Accordingly, without limiting the generality of the foregoing, the said Mayor and the said City Clerk are each hereby authorized and directed to cause to be prepared, signed on behalf of the City and filed with the Internal Revenue Service Form 8038-G or other form prescribed by the Internal Revenue Service as a condition to the exemption of the interest income on the Series 2022 Warrants from federal income taxation. The said Mayor and City Clerk are each hereby authorized and directed to execute such certificates, agreements and other documents respecting the Code, as contemplated by this ordinance and the Indenture, to the end that the interest on the Series 2022 Warrants be and remain exempt from federal income taxation. The Mayor and the City Clerk are each hereby authorized to make the elections authorized to be made under the regulations promulgated under Section 148 of the Code. Section This Ordinance a Contract. The provisions of this ordinance shall constitute a contract between the City and each holder of the Series 2022 Warrants until they shall have been paid in full or provision made for the payment thereof as provided in the Indenture, and all the agreements on the part of the City herein and therein contained with respect thereto shall have been performed, then upon the happening of such events the obligations of the City hereunder shall thereupon cease. Section 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. ADOPTED this 25th day of April, 2022. /s/ Chris Seibert PRESIDENT, CITY COUNCIL, CITY OF ATHENS, ALABAMA /s/ William R. Marks MAYOR, CITY OF ATHENS, ALABAMA ATTEST: /s/ Annette Barnes CITY CLERK, CITY OF ATHENS, ALABAMA Exhibit A  Form of Second Supplemental Indenture (Attached) Exhibit B Form of Preliminary Official Statement (Attached) Exhibit C Form of Continuing Disclosure Agreement (Attached) Exhibit D Form of Escrow Trust Agreement (Attached) Exhibit E Form of Insurance Agreement (Attached) Councilmember Harper moved that unanimous consent be given for immediate consideration of and action on said ordinance, which motion was seconded by Councilmember Wales, and upon the said motion being put to vote the following vote was recorded: YEAS: Councilmembers Seibert, Wales, Henry and Harper; NAYS: None. The President thereupon declared that the motion for unanimous consent for immediate consideration of and action on the said ordinance had been unanimously carried. Councilmember Henry thereupon moved that the ordinance be finally adopted, which motion was seconded by Councilmember Wales and upon the said motion being put to vote the following vote was recorded: YEAS: Councilmembers Seibert, Wales, Henry and Harper; NAYS: None. The President thereupon announced that the motion for the adoption of the said ordinance had been unanimously carried. Councilman Harper introduced the following resolution: RESOLUTION NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATHENS, ALABAMA, at its meeting on April 25, 2022, that the Council has received and reviewed the Municipal Water Pollution Prevention Report for calendar 2021 by the Athens Water Services Department. The Water Services Department Director is authorized to submit the report per Alabama Department of Environmental Management requirements and the Athens Utilities WWTP NPDES discharge permit AL 0020206. The motion was seconded by Councilwoman Henry and was unanimously carried. * * * There being no further business to come before the meeting, Council President Seibert declared the meeting duly and properly adjourned. /s/ Chris Seibert PRESIDENT, CITY COUNCIL ATTEST: /s/ Annette Barnes CITY CLERK