Fairhope City Council rejects committee’s advice for refinancing, new loan

Posted 8/16/11

FAIRHOPE - A lone City Council member, who objected last month to refinancing and adding to the city’s debt without first seeking Requests for Proposals, prevailed last week when the council unanimously rejected a committee recommendation to use a …

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Fairhope City Council rejects committee’s advice for refinancing, new loan

Posted

FAIRHOPE - A lone City Council member, who objected last month to refinancing and adding to the city’s debt without first seeking Requests for Proposals, prevailed last week when the council unanimously rejected a committee recommendation to use a Montgomery company for the $22 million job.

Councilwoman Debbie Quinn was the only Financial Advisory Committee member to vote against using Frazer Lanier Co., arguing the city should request proposals from several firms. 

“I just think that there’s competition out there, and we ought to let competition give us the best deal,” Quinn said at the July 25 committee meeting, as reported in The Fairhope Courier. 

“I feel after your article that possibly some banks may have called (council) members,” Quinn said last week. 

The council passed three resolutions at its Aug. 8 meeting to issue the following RFPs:

* For refinancing of a 2002 utility bond and borrowing an additional $8.6 million for upgrades and expansion of water and sewer systems for a total of $15.3 million for 20 years.

* For refinancing of a 2002 general fund bond of $4.2 million for 10 years.

* For a general fund line of credit of $2 million for street resurfacing to be converted to a permanent loan for six years after work completed.

“I feel it is always in the best interests of the city that the City Council look at all avenues to get the best bang for our tax dollars,” Quinn said. “And with interest rates so low, offering this opportunity locally is very appropriate and possibly cheaper in the long run.”