CITY OF LANETT

REGULAR SCHEDULED COUNCIL MEETING

August 20, 2007

The City Council of the City of Lanett, Alabama, met in regular session on Monday, August 20, 2007, in the Council Chambers of the Lanett Municipal Complex at 6:00 P.M. The roll was taken and the following were found to be present: Councilmember Malone, Councilmember Duskin, Councilmember Heard and Councilmember McCoy. Councilmember Yarbrough was absent. Mayor Crawley was present and presided over the meeting.

City Manager Joel Holley said the invocation and led the pledge of allegiance.

Councilmember McCoy made the motion to adopt the prepared agenda. Councilmember Heard seconded the motion. Motion unanimously carried.

Councilmember Duskin made the motion to dispense with reading and to adopt the minutes of the regular scheduled meeting of August 6, 2007. Councilmember McCoy seconded the motion. Motion unanimously carried.

Councilmember Malone read “Resolution 08-07-12 – Award Contract For Senior Center Re-Roofing and Site Improvements, CDBG Project LR-CE-PF-06-011”. Councilmember Malone made a motion to adopt “Resolution 08-07-12 – Award Contract For Senior Center Re-Roofing and Site Improvements, CDBG Project LR-CE-PF-06-011”. Councilmember Duskin seconded the motion. Motion unanimously carried.

Joe Jolly with Joe Jolly & Company explained to the Mayor and Council of the City of Lanett to take action on refinancing the 2002 Electric Revenue Warrants for $7,700,000.00 and that would mean $2,000,000.00 for capital projects, which would add additional 14 years to the City of Lanett indebtedness from 2023 to 2034. Joe Jolly told the Mayor and Council that now is the time to refinance, because of the GO Zone due to Katrina and the City of Lanett had AAA rating. Joe Jolly told the Mayor and Council that the City of Lanett was able to get bond insurance, because of the AAA rating.

Councilmember McCoy said that in 2002 the money was used to upgrade the City of Lanett Waste Treatment Plant. Councilmember McCoy asked Joe Jolley what would happen if the City of Lanett needed to borrow money in the near future. Joe Jolley told Councilmember McCoy that he did not see a problem.

Councilmember McCoy said the problem he seen was the issue with the L.B. Sykes Lanett Junior High School building being turned over to the City of Lanett with $800,000.00 to $900,000.00 still owed that the City of Lanett would have to paid. Councilmember McCoy said the City of Lanett would have to assume the debt and how would it be paid for. Councilmember McCoy said the City of Lanett will be losing approximately $36,000.00 in revenue from utility bills and would be paying $12,000.00 to maintain the building once it was returned to the City of Lanett.

Councilmember Malone asks what would the bond money be earmarked for and how it would be spent. City Manager Holley told Councilmember Malone that it would be spent on the reconstruction of the hanger that City of Lanett purchased from the City of Valley for a new public works facility. Councilmember Malone wanted to know what the Mayor and Council would be doing for the citizens. City Manager Holley told Councilmember Malone it would be up to the Mayor to formally inform the Council of anything else under consideration.

Councilmember Heard read “Resolution 08-07-08 Electric Warrants Revenue”. Councilmember Heard made a motion to adopt “Resolution 08-07- Electric Warrants Revenue”. Councilmember Duskin seconded the motion. Roll call vote as follows Councilmember Malone – Nay, Councilmember Heard – Nay, Councilmember McCoy – Nay, Councilmember Duskin – Yea, and Mayor Crawley – Yea. Motion failed. Councilmember Heard told the council he needed more time on the “Resolution 08-07-08 Electric Warrants Revenue”.

Joe Jolly said to the Mayor and Council that this was going to cost the City of Lanett a lot of money. Councilmember McCoy asked him why? Joe Jolley said he had agreed to purchase U.S. securities on behalf of the City of Lanett and payment would be due on August 23, 2007. Joe Jolley said the opportunity arose because of Hurricane Katrina allocations and would not last much longer. Joe Jolley said that he thought that all the members were all in agreement.

Councilmember McCoy said he felt that the citizens of Lanett should know about money being obligated for and that the reason the City of Lanett has ordinances is to give citizens a chance to voice there opinion. Councilmember McCoy said that he felt it would be unfair to approve the resolution and ordinance because the citizens would find themselves in debt for an additional $2,000,000.00 for another 14 years. Councilmember McCoy felt like that this had not been discussed in the past.

Mayor Crawley said the refinance of the Electric Revenue Bond was discussed in the work session and that was not the first time.

Councilmember Heard made a motion to amend agenda to reconsider the “Resolution 08-07-08 Electric Warrants Revenue”. Councilmember Duskin seconded the motion. Roll call vote as follows on the reconsideration: Councilmember Malone – Nay, Councilmember Heard – Yea, Councilmember McCoy – Nay, Councilmember Duskin – Yea, and Mayor Crawley – Yea. Motion passed.

Councilmember Heard read the first reading of “Ordinance Authorizing The City’s Electric Revenue Warrants Series 2007, and The City’s Trust Indenture Securing Said Warrants and Other Warrants That May Be Issued Thereunder”.

Councilmember Heard presented “Certification of Appreciation – Carrie Broom”. Carrie Broom was present along with her family, pastor and his wife to receive the certificate.

Councilmember McCoy read “Resolution 08-07-09 – Medical – Dental Insurance Blue Cross Blue Shield of Alabama”. Councilmember McCoy made a motion to adopt “Resolution 08-07-09 – Medical – Dental Insurance Blue Cross Blue Shield of Alabama”. Councilmember Duskin seconded the motion. Motion unanimously carried. Councilmember McCoy said this is good for the City of Lanett employees.

Councilmember Duskin read “Resolution 08-07-10 – Surplus Equipment”. Councilmember Duskin made motion to adopt “Resolution 08-07- Surplus Equipment”. Councilmember McCoy seconded the motion. Motion unanimously carried. Councilmember Duskin ask if there was problems with surplus property being sold without the vehicle identification number. Councilmember McCoy said no problem the vehicle is 40 years old.

Councilmember Duskin read “Resolution 08-07-11 – Awarding Contract For Lanett Municipal Airport Apron Rehabilitation, AIP Project No. 3-01-0046-004-2007” and the cost is $218,000.00. Councilmember Duskin made a motion to adopt “Resolution 08-07-11 – Awarding Contract For Lanett Municipal Airport Apron Rehabilitation, AIP Project No. 3-01-0046-004-2007”. Councilmember McCoy seconded the motion. Motion unanimously carried. Councilmember Malone ask if the cost of $218,000.00 was one total. City Manager Holley said that the cost was in two sections.

They’re being no further business, to come before this Council, motion duly made, and meeting was adjourned at 6:40 P.M.

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Oscar Crawley, Mayor

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Deborah Daniel, City Clerk