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HomeMy Public PortalAbout19501109CCMeeting1 Savannah Beach, Tybee Island, Ga. November 9, 1950 The regular meeting of Town Council was held today at IF P. M. and was attended by Mayor Dutton, who presided, Council- men Hosti, Smith, Medlin, Lovell, Town Attorney Solms, Chief McCutchen and Supt. Reed. The following Ordinance covering the purchase of the water works system from the T. W. W. was read and on motion of Councilman Smith that it be adopted, seconded by Councilman Meddin, the motion passed unanimously. AN ORDINANCE AN ORDINANCE AUTHORIZING THE ACQUISITION AND THEREAFTER IMPROVING A MUNICIPAL WATER SYSTEM AND THE ISSUANCE UNDER THE PROVISIONS OF THE REVENUE CERTIFICATE LAW OF TOWN OF SAVANNAH BEACH, TYBEE ISLAND, WATER REVENUE ANTICIPATION CERTIFICATES, PAYABLE SOLELY FROM THE EARNINGS OF SUCH WATER SYSTEM; TO FINANCE IN WHOLE OR IN PART THE COST OF SUCH ACQUISITION AND .IMPROVEMENT; PROVIDING RATES FOR THE SERVICES AND FACILITIES TO BE FURNISHED BY SUCH SYSTEM; PROVIDING FOR THE CREATION OF CERTAIN FUNDS, AND PROVIDING FOR THE REMEDIES OF THE HOLDERS OF SUCH CERTIFICATES, AND FOR OTHER PURPOSES: WHEREAS, by virtue of the Revenue Certificate Law of 1937 as amended (Act No. 513, Georgia Laws 1937, as amended by Act No. 182, Georgia Laws 1939), (hereinafter sometimes called the "Rev- enue Certificate Law "), Savannah Beach, Tybee Island, Georgia, (hereinafter sometimes called the "Town" or the "Municipality ") is authorized and empowered: (a) to acquire by purchase or otherwise and to thereafter improve a water system used or useful in connection with the ob- taining of a water supply and the conservation, treatment and disposal of water for public and private uses; and (b) to operate and maintain any such undertaking for its own use,' and for the use of its public and private consumers and users within and without the territorial boundaries of the Muni - cipality; and (c) to prescribe, revise and collect rates, fees and charges for the services, facilities and commodities furnished by such undertaking; and (d).in anticipation of the collection of the revenues of such undertaking, to issue revenue anticipation certificates to finance in whole or in part the cost of the acquisition, construc- tion or extension of such undertaking; and WHEREAS, the Town has entered into negotiations with Tybee Water Works, a corporation, which company owns the water system located in said municipality, and a contract has been entered 35 36 into between it and the said corporation under which the stock of the company will be acquired which means that the existing privately owned water system can be purchased at and for the sum not exceeding $117,500; and WHEREAS, the mayor and Councilmen of Savannah Beach deems it to the best interest of the Town and its citizens to acquire said system a.nd•for the Town thereafter to add to, extend and improve said system and to operate, maintain and repair same, all for the benefit of the Town and its citizens; and WHEREAS, the Mayor and Councilmen of Savannah Beach has caused a survey to be made by Thomas & Hutton, Engineers, Savan- nah, Georgia, estimating the initial cost of acquiring and there- after improving the water system and in determining such cost has included the cost of the issuance of the water revenue anticipa- tion certificates authorized hereby, fiscal and legal expenses, interest during construction and for six months thereafter, and all other expenses incident to such acquisition and improvement, and according to such present estimate, the proceeds of One Hun- dred Sixty -five Thousand Dollars ($165,000) Water Revenue Antici- pation Certificates will be sufficient to pay the cost of acquir- ing and construction a modern water system sufficient to meet the needs of the potential users; and WHEREAS, it has been proven that as extensions and imp- provements are completed, additional demands are made for more .facilities and further extensions and improvements and that in order to meet this situation, provision should be made for the issuance of $135,000 principal amount of additional certificates for such purpose, said certificates to stand on a parity with and be of equal dignity to the certificates now actually about to be issued and delivered: NOW, THEREFORE, BE IT ORDAINED by the Mayor and Council- men of Savannah Beach, Tybee Island, and it is hereby ordained by authority of same, as follows: ARTICLE I AUTHORIZATION, FORM AND REGISTRATION OF CERTIFICATES Section 1. Under the authority of the Revenue Certifi- cate Law as amended, the acquisition and improving of the water system is hereby authorized, and for the purpose of financing in whole or in part the cost of such acquisition and improve- ments, there is hereby authorized to be issued Water Revenue Anticipation Certificates of the Town of Savannah Beach in the aggregate principal amount of Three Hundred Thousand Dollars ($300,000); of which said authorized amount One Hundred Sixty - five Thousand Dollars ($165,000) principal amount of certifi- cates shall now be issued and the remaining One Hundred Thirty - five Thousand Dollars ($135,000) principal amount of certifi- cates, all or in part, may be issued and sold only on the foll- owing conditions: 1 (a) The payments required to be made into the respective funds provided in Article IV are current, that is, are being made as required. (b) An independent and recognized firm of certified public accountants shall certify in triplicate to the governing body of the Municipality that the Town is complying with the requirements of paragraph (a) above, and that the net earnings of the system for the period of twenty -four. consecutive months immediately preceding the adoption of proceedings for the issuance of such additional obligations must have been equal to at least one and one -half times the highest combined interest and principal re- quirements for any suceeding twenty -four months period on all obligations proposed to be issued. Net earnings for the purpose of this section shall be construed to be gross earnings remaining after the payment of the reasonable and necessary expenses of op- erating and maintaining the system, including the cost of necess- ary repairs, and after the payments covenanted to be made into the respective funds as provided in Article IV of this Ordinance. (c) One of the certificates of the certified public accountants shall be furnished to the purchasers of the certifi- cates authorized and issued hereunder. (d) The governing body of the Town shall pass an ordin- ance or ordinances reciting that all of the above requirements have been met and authorized the issuance of all or a part of said certificates, which ordinance or ordinances shall, among other, provide that the principal of the additional obligations shall fall due on December 1 or._ June 1 of each year, with in- terest maturing on December 1 and June 1 of each year; and pro- vided further that any such ordinance or ordinances shall re- state or reaffirm by reference all the terms, conditions and provisions of this ordinance. (e) Such additional certificates and all proceedings relative thereto and the security therefor shall be validated as prescribed by law. The principal and interest of all of the certificates of this issue, or of any subsequent issue or issues when properly authorized as hereinabove provided for, shall be payable solely from the revenues as hereinafter provided, and from the water system sinking fund hereinafter created, and all the covenants, agreements and provisions of this ordinance shall be for the equal and proportionate benefit and security of all of the hold- ers of the certificates and interest coupons without preference, priority or distinction as to lien or otherwise of any one cer- tificate over any other certificate. Section 2. The Water Revenue Anticipation Certificates now to be issued shall be designated "SAVANNAH BEACH, TYBEE ISLAND, WATER REVENUE ANTICIPATION CERTIFICATES," shall be in the denomination of $1,000 each, all dated December 1, 1950, bearing interest at the rate of three and one - fourth per centum (3`a) per annum, payable semi - anneal »y on the first days of June and 87 38 December in each year, and maturing on the first day of December, as follows: 1 3,000 in each of the years 1951 to 1953, inclusive ,000 in each of the years 1954 to 1958, inclusive 5,000 in each of the years 1959 to 1964, inclusive 6, 000 in each of the years 1965 to 1969, inclusive 7,000 in each of the years 1970 to 1979, inclusive $6,000 in the - yet.r tof 19€ 0: section 3. The certificates shall be signed by the Mayor of the Town of Savannah Beach, and the corporate seal of the Town shall be affixed to the certificates and attested by the Clerk of Council. The coupons to be attached to the certificates shall be executed with the facsimile signatures of said Mayor and Clerk of Council. In case any officer whose signature shall appear on any certificates or coupons shall cease to be such officer before delivery of such certificates, such signature shall nevertheless be valid and sufficient for all purposes the same as if he had re- mained in office until such delivery. The certificates and the in- terest coupons to be attached thereto and the certificate of val- idation to be endorsed upon the certificates shall be, respective- ly, in substantially the following forms, with such variations, omissions and insertions as are required or permitted by this ordinance. ***S. w****roi ic***** w******** *** ** UNITED STATES OF AMERICA STATE OF GEORGIA SAVANNAH BEACH, TYBEE ISLAND WATER REVENUE ANTICIPATION CERTIFICATE No. $1,000 FOR VALUE RECEIVED, Savannah Beach, Tybee Island, Chatham County, Georgia, hereby promises to pay, solely from the special fund provided therefor, as hereinafter set forth, to bearer, or if registered as herein provided, to the registered owner hereof, on the 1st day of December, 19 , the principal sum of ONE THOUSAND DOLLARS and to pay solely from said special fund interest hereon at the rate of three and one - fourth per centum (3 %) per annum, payable semi - annually on the 1st days of June and December in each year, until payment of the principal amount hereof, upon the presenta- tion and surrender of the annexed interest coupons as they re- spectively become due. 1 1 39 Both the principal of and interest on this certificate are payable in lawful money of the United states of America at Savannah Banes. and Trust Company of Savannah, Georgia. This certificate shall not be deemed to constitute a debt of the Town of Savannah Beach or a pledge of the faith and credit of said Town, nor shall the Town be subject to any pecu- niary liability thereon. This certificate shall not be payable from or charged upon any funds other than the revenues pledged to the payment thereof, and is payable solely from the special fund provided therefor from the earnings of the water system hereinafter mentioned. No holder of this certificate shall ever have the right to compel the exercise of the taxing power of the Town to pay the same or the interest hereon, nor to enforce pay- ment hereof against any property of the Town, nor shall this cer- tificate constitute a charge, lien or encumbrance, legal or equit- able, upon any property of the Town. This certificate is one of a duly authorized issue in the aggregate principal amount of $165,000 of like date and tenor except as to numbers, maturities and redemption provisions, issu- ed to provide funds for financing in whole or in part the cost of acquiring and thereafter improving a water system, and all of said certificates are issued under and pursuant to an ordinance duly adopted by the Mayor and Councilmen of Savannah Beach, pass- ed on the day of 1950. In addition to the aggre . gate principal amount of certificates of this series the Town may, under certain conditions as provided in said ordinance, issue not exceeding §135,000 principal amount of Water Revenue Anticipation Certificates, and if issued in whole or in part will rank on a parity with the certificates of this series. Reference to said ordinance is hereby made for a description of the fund charged with and pledged to the payment of the interest on and the principal of the certificates of said issue, the nature and extent of the security, and a statement of the rights, duties and obligations of the Town and the rights of the holders of the certificates, and the terms and conditions under which all or a part of the total ('300,000) authorized amount of certificates may be issued, to all the provisions of which the holder hereof, by the acceptance of this certificate, assents. This certificate is issued and the ordinance was adopted under and pursuant to the Constitution and laws of the State of Georgia, particularly under authority of the Revenue Certificate Law of the State of Georgia, which ordinance provides for prescribing and revising rates and for collecting fees and charges for the services, facilities and commodities furnished by the water system sufficient to provide funds to pay the cost of maintaining, repairing and operating such system and to pay the certificates and the interest thereon, and also provides for the payment into a special fund designated "Water System Sinking Fund ", of a sufficient amount of the revenues of the water system, over and above such expenses of maintenance, repair and operation, to pay the principal of and interest on the certificates as the same become due and payable in the current Sinking Fund year, and to create and maintain a reserve to pay the principal of and interest on the certificates equal to not less than $25,000. 40 The certificates of this issue may be redeemed prior to their respective maturities at the option of the Town, either in part, on the first day of December in any year, not earlier than December 1, 1956, from monies in the Water System Sinking Fund not required for paying the principal and interest coming due upon such certificates in the then current fiscal year and in the next succeeding fiscal year, or in whole, on the first day of December in any year, not earlier than December 1, 1956, from any monies which may be made available for such purpose, upon at least thirty (30) days prior notice by publication and other- wise as provided in the ordinance, at the principal amount thereof and accrued interest together with a premium of five per centum (5%) of such principal amount if redeemed in the years 1956 to 1960, inclusive, four per centum (4 %) if redeemed in the years 1961 to 1965, inclusive, three per centum (3 %) if redeemed in the years 1966 to 1970, inclusive, two per centum (2 %) if redeemed in the years 1971 to 1975, inclusive, and one per centum (1 %) if redeemed thereafter before maturity. If the certificates are called in part, then any certificates so called for redemption shall be in the inverses order of their numbering. This certificate shall be fully negotiable for all purposes, as declared by the Revenue Certificate Law, and is issued with the intent that the laws of the State of Georgia shall :overn its construction. In case of default, the holder of this certificate shall be entitled to the remedies provided by the ordinance, and the Revenue Certificate Law of 1937, and any amendments thereto. This certificate may be registered as to the payment of principal and interest on the books of the Clerk of Council of Savannah Beach, Tybee Island, and thereafter the principal and interest thereof shall be payable to the registered owner, and no transfer thereafter shall be valid unless made on the books of said Clerk of Council, and an endorsement of such registration upon the back of this certificate unless the last registration shall have been made to bearer. This certificate shall continue subject to successive registration and transfer to bearer at the option of the owner. It is hereby recited and certified that all acts, conditions and things required to be done precedent to and in the issuance of this Water Revenue Anticipation. Certificate have been done, have happened and been performed in due and legal form as required by law, and that provision has been made for the allocation of the anticipated charges and fees from the water service necessary and sufficient in amount to pay the principal and interest of said certificates as they mature in the current year, and in the next succeeding year, and that said funds are irrevocably allocated and pledged for the payment of said certificates and interest thereon. IN WITNESS WHEREOF, the Mayor and ''ouncilmen of Savannah Beach, Tybee Island has caused this certificate to be signed by its Mayor, and its corporate seal to be hereunto 41 affixed, and attested by its Clerk of Council, and has caused the annexed interest coupons to be authenticated with the facsimile signatures of its said officers as of the 1st day of December, 1950. Attest: Clerk of Council (S E A L) SAVANNAH BEACH, TYBEE ISLAND By- Mayor :. * * * * * * C O U P O N No. $16.25 On the 1st day of , 19 , unle,ss the certificate hereinafter described be subject to redemption and shall have been duly called for previous redemption and payment of the redemption price made or provided for, Savannah Beach, Tybee Island, Georgia, promises to pay to bearer at Savannah Bank and Trust Company of Savannah, Savannah, Georgia, Sixteen and 25/100 Dollars in lawful money of the United States of America, solely from the special fund referred to herein, and for the semi- annual interest then due upon its Water Revenue Anticipation Certificate, dated December 1, 1950, numbered Clerk of Council . Mayor VALIDATION CLRMIFICATE STATE OF GEORGIA ) COUNTY OF CHATHAM ) The undersigned Clerk of the Superior Court of Chatham County, State of Georgia, keeper of the records and seal thereof, DOES HEREBY CERTIFY that this certificate was validated and confirmed by judgment of the Superior Court 42 of Chatham County, Georgia, on the day of 1950, and that no appeal has been prosecuted therefrom. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Superior Court of Chatham County, Georgia, on this the day of , 1950„ (5 E A L) Clerk, Superior Court, Chatham County, Georgia w .. .. A . .. _ q .. p CERTIFIGA'i'E OF REGISTRATION At the request of the holder of the within certificate for its conversion into a registered certificate, I have this day cut off all coupons attached to said certificate, and the within_ certificate is hereby converted into a registered certificate, with the principal thereof and interest thereon payable to the registered. holder* Hereafter no transfer thereof while registered shall be effectual unless made or the books of the Clerk of Council of Savannah Beach, Tybee Island by the registered holder, or his attorney, and noted hereon4 But this certificate may be discharged from registration by being so transferred to bearer, in which case the 'Clerk of Council will reattach thereto all coupons then unmatured,. which were detached therefrom. Cafe' k ©f' Council DATE OF REGISTRATION : IN WHOSE NAME REGISTERED : CLERK OF COUNCIL • Section 4* Title to the certificates, and to the interest coupons thereto appertaining, shall pass by delivery in the . same manner as - a -- negoti -able Instrument payable to bearer, unless such certificate is registered, in the manner hereinafter provided. The certificates may be registered as to the payment of principal and interest on the books of the Clerk of Council of Savannah Beach, Tybee Island kept for that purpose, and thereafter the principal and interest thereof shall be payable to the registered owner, and no transfer thereafter shall be valid unless made on the books of said Clerk, and an endorsement of such registration upon the back of the 43 certificate, unless the last registration shall have been made to bearer. The certificate shall continue subject to successive registration and transfer to bearer at the option of the owner. At the request of the holder of any certificate for its conversion into a registered certificate, the Clerk of Council will cut off all coupons attached to the certificates sought to be registered, and will make proper notation of registration, and will pay all interest as it accrues on said registered certificates to the registered holder thereof. The certificates may be discharged from registration by being transferred to bearer, in which case the clerk of Council will reattach to the certificates all coupons then unmatured which may have been detached therefrom. Section 5. The lien created by virtue of this ordinance and the issuance of certificates hereunder or under authority of this ordinance by subsequent proceedings as provided by Section 1 of this Article shall be prior and superior to any other certificate of any kind or character, and any obligation or certificate of the Town which in any wise affects any of the revenues hereinafter pledged for the payment of the principal of and interest on the certificates hereby authorized shall in all respects be junior and subordinate to the lien of the certificates herein authorized. ARTICLE II REDEMPTION OF CLRTIFICATES BEFORE MATURITY Section 1. The certificates secured hereby may be redeemed as provided for in the certificate form set out in Article I of this ordinance. At least thirty (30) days before any date upon which any such redemption is to be made, a notice of intention so to redeem, signed by the Mayor and attested by the Llerk of Council of the Municipality, designating the redemption date and the'certificates to be redeemed, shall be published at least once in a newspaper of general circulation published in the City of Savannah, Georgia, and shall be filed at the place at which the principal and interest of the certificates shall be payable and shall be mailed, postage prepaid to all registered owners of the certificates to be redeemed whose addresses shall appear upon the books of registration hereinabove provided for; but failure so to mail any such notice shall not affect the validity of the proceedings for such redemption. If the certificates are redeemed in part, such redemption as to said certificates shall be in the inverse order of the numbers of the certificates and maturitj.es beginning; with certificate #165 and working backwards. . Section 2. Nothing herein contained shall be construed to limit the right of the Town to purchase with the excess monies, as hereinabove defined, in the Sinking Fund and for sinking fund purposes, certificates in the open market at a price less than the callable price hereinabove set forth. Any such certificates so purchased cannot be reissued and shall be disposed of as is provided in Section 4 of this Article. Section 3. Notice having been given in the manner and �*a under the conditions hereinabove provided, the certificates so Cme designated for redemption shall, on the redemption date desig- nated in such notice, become and be due and payable at the redemption price hereinabove specified, and from and after the date of redemption so designated, unless default shall be made in the payment of certificates so designated for redemption, interest on the certificates so designated for redemption shall cease to accrue and interest coupons maturing after the redemption shall become void. Certificates which have been duly called for redemption under the provisions of this Article, and for the paymeht of the redemption price of which monies shall be held by the Sinking Fund Custodian or the Paying Agent, shall be deemed paid and shall not be considered to be outstanding under the provisions of this ordinance. Section 4. Certificates redeemed and unmatured coupons appurtenant thereto shall be cancelled or otherwise mutilated and destroyed, and record of such mutilation shall be made and preserved in the records of the Municipality. ARTICLE III CUSTODY AND APPLICATION OF PROCEEDS OF CERTIFICATES Section 1. A special fund is hereby created and desig- nated "WATER SYSTEM CONSTRUCTION FUND ", sometimes hereinafter referred to as "Construction. Fund ", into which the proceeds from the certificates issued hereunder shall be deposited, including accrued interest, or any other funds acquired by gift, donation, grant or otherwise. The monies in the Construc- tion Fund shall be held by the Depository in trust and applied to the payment of the cost of acquiring the capital stock of Tybee hater Works, a corporation which owns the existing facilities to be purchased as hereinabove stated and thereafter constructing, reconstructing, improving, bettering and extending the system so acquired in accordance with and subject to the provisions and restrictions set forth in this Article and the Municipality covenants that it will not cause or permit to be paid from the Construction Fund any sums except in accordance with such provisions and restrictions. All monies in the Construction Fund shall be subject to a lien and charge in favor of the holders of the certificates issued hereunder, and outstanding at any time, and shall be held for the future security of such holders until paid out, as hereinafter provided. Section 2. For the purpose of this Article, the cost of acquiring, constructing, improving, bettering, adding to or extending the system shal include the prchase price of the existing facilities and of finds by the acquisition of the capital stock or otherwise, easements, rights of way, storage tanks and reservoirs, installation of fire hydrants, taking up and lying mains, and any and all materials necessary for the construction of a modern and efficent water system without intending thereby to limit or restrict, or to extend, any proper definition of such cost, as contained in the Revenue Certificate Law, as 1 1 45 amended, or usual and incident to the modernization and operation of an efficient system, whit4 in addition, shall include: (a) Interest accruing upon the certificates prior to.the commencement of and during the construction and reconstruction of the system, as added to and improved and for six months after the date of the completion of the improvements to said system and the reasonable fees of paying for the payment of such interest; (b) The cost of indemnity and fidelity bonds either to secure deposits in the Construction Fund or to insure the faithful completion of any construction contract pertaining to said improvements to said system; (c) Any taxes or any charges lawfully levied or assessed against the undertaking; '(d) Fees and expenses of Engineers for engineering studies, surveys and estimates, and the preparation of plans and supervising of construction; (e) Legal expenses and fees, costs of audits and of. preparing and issuing the certificates and all other items of expense not elsewhere in this Section specified incident to the construction, adding to and improvement of the system; (f) Payments made for labor, contractors, builders and materialmen in connection with theceonstruction and payment for machinery and equipment and for the restoration of property damaged or destroyed in connection with such construction; (g) The repayment of any loans or advances made the Town to accomplish all or a part of the foregoing. Section 3. All payments from the Construction Fund shall be made upon checks signed by the officers of the Municipality properly authorized to sign in its behalf, but before they shall sign any such checks there shall be filed with the Depository: (a) A requisition for such payment (the above mentioned checks may be deemed a requisition for the purpose of this Section), stating each amount to be paid and the name of the person, firm or corporation to whom payment thereof is due; and (b) A certificate attached to the requisition certifying: 1. That an obligation in the stated amount has been incurred by the Municipality, and that the same is a proper charge against the Construction Fund and has not been paid, specifying the purpose 46 CC and circumstances of such obligation in Qw reasonable detail, and to whom such oblig- ation is owed, accompanied by the bill or statement of account for such. obligation, or a copy thereof; and 2. That they hae no notice of any vendor's, mechanicls or other liens or rights to liens, chattel mortgages, or conditional sales contracts which should be satisfied or discharged before such payment is made; and 3. That such requisition contains no item representing payment on account or any retained percentages which the Municipality is, at the date of such certificates, entitled to retain. (c) No requisition for payment shall be made until the Municipality has been furnished with proper certi- ficate of the project superintendent that in so far as such obligation was incurred for work, material, supplies, or equipment in connection with the under- taking, such work was actually performed, or such material, supplies or equipment was actually installed in or about the construction or delivered at the site of the work for that purpose. Section 4. No payment shall be made from the Construc- tion Fund which will reduce the amount in the Construction Fund below an amount sufficient to pay interest on the certificates then outstanding that may become due and payable up to and including the time the system, as added to and improved, will be completed as estimated by the project superintendent, and for six months thereafter; provided, however, should there be in the Sinking Fund, hereinafter provided for, monies for the payment of such interest, then this Section becomes inapplicable. Section 5. If before the completion of the additions, extensions and improvements to the water system it becomes necessary or is deemed advisable to sell all or a part of the real estate acquired by the Town in the purchase of the Tybee Water Works, in order to accomplish the completion of such additions, exten- sions and improvements, the proceeds of the real property so sold will be deposited in the Construction Fund and disposed of as in this Article provided, otherwise the proceeds to be deposited and used as set forth in the second paragraph of Section 9 of Article VI of this ordinance. Section 6. All requirements and certificates as required by this Article shall be retained either by the Depository or by the Municipality, subject at all times to inspection of any officer of the Municipality, the project superintendent and the duly authorized agent or representative of the firm purchasing the certificates. 1 1 47 Section 7. When the system shall have been acquired and thereafter added to, extended and improved in accordance with the provisions of this ordinance, the engineer shall evidence such fact by giving to. the Town and Depository a certificate to that effect, showing the complete cost of the system and what costs, if any, have not been paid and for the payment of which money should be reserved, including the payment of interest in accordance with the provisions of this Article, in the construction Fund, and of the balance in said fund not exceeding 45,000, shall be transferred by the Town to the credit of the "Revenue Fund" (hereinafter created and for the purpose hereinafter stated), and the remaining balance, if any, in said fund shall be transferred by the Town to the credit of the "Sinking Fund" (hereinafter created). Section 8. The Citizens &c Southern National Bank, Savannah, Georgia, be and is hereby designated as Depository for the Construction Fund. ART I CTR IV REVENUES AND FUNDS Section 1. After the acquisition of the water system, the Municipality covenants that it will operate said system on a fiscal year basis beginning May 1st and ending April 30th in each year. However, should it be deemed advisable to change its fiscal year at some later date, the Town may do so by proper municipal action to that effect. Section 2. The Town covenants that at the time it begins to furrlsh water from its system to any of its customers, it will deposit in the Revenue Fund hereinafter created, if such monies are then available in the Construction Fund for that purpose, an amount estimated to be sufficient to pay all the reasonable cost of operating, maintaining and repairing the said system for a period of five months thereafter.. If monies are not in the Construction Fund available to that extent, then such monies as might be available for said purpose shall be withdrawn and placed in said Revenue Fund. All revenues arising from the operation of the water system and poperties in connection therewith shall be collected by the Town or by its agent or employees and deposited promptly with the Depository tothe credit of a special fund which is hereby created and designated as 'tWater'System Revenue Fund" (sometimes hereinafter called the "Revenue Fund ") and shall be disposed of in the following manner and order: 1. Revenues stall first be used to pay the reasonable and necessary cost of operating, main- taining and repairing the water system, including salaries, wages, cost of material and supplies, rentals of leased property, insurance and such other charges as may properly be made for the purpose of operating, maintaining and repairing said system in accordance with sound business practice. 48 2. There shall next be paid from, said Revenue Fund into a special fund which is hereby created and designated as "Water System Sinking Fund" (hereinafter sometimes called the "Sinking Fund"), on or before August 1st in each year, such amounts as will be necessary to be Cully sufficient to pay all principal and interest falling due during the succeeding sinking fund year on the certificates herein authorized, plus an additional margin of twenty -five per centum (25 %) of such required amounts, such additional 25% payments to lbe ,continued•'and re- continued for so long a time as is necessary to create and maintain a surplus in the Sinking Fund of not less than Twenty -five Thousand Dollars 025,000). If in any year, for any reason, the full amount required hereunder shall not be paid into the Sinking Fund, any such deficiency shall be paid from the first monies in the Revenue Fund thereafter available for that purpose, and in all events any such deficiency shall be ad.ed to the amount required to be paid into said Sinking Fund in the next succeeding year. After such surplus in said Sinking Fund shall have been accumulated in its full required amount, it shall be maintained for the purpose of paying principal and interest falling due in any year as to which there would otherwise be a default, and if money, is taken from the surplus in said Fund for the payment of said principal or interest, the money so taken shall be replaced in said Fund from the first monies in the Revenue Fund thereafter available and not required to be used for maintenance and operation charges or to be paid into the Sinking Fund for current principal and interest requirements. Section 3.. After there has been paid from the Revenue. Fund for each Sinking Fund year all amounts hereinabove required to be made, there shall next be paid on or before August 1 in each year all of the remaining available monies in said Revenue Fund into a special fund to be known, and it is hereby created, as "Renewal and Extension Reserve Fund" (sometimes hereinafter called the "Reserve Fund ") and said payments shall continue and recontinue until such time as there shall be in said Fund the sum of Fifteen Thousand Dollars (415,000). Thereafter payments need be made into said Fund only for the purpose•of reimbursing money withdrawn or expended therefrom, in which event such payments as above stipulated to be made shall immediately recommence and srail continue and recontinue until all monies withdrawn or expended therefrom have been repaid. Expenditures shall be made from said Renewal and Extension Fund only for the following purposes: (a) In case of an emergency having a major effect upon the water system caused by some exgra- ordinar y occurrence and which makes it necessary to use funds of the water system for the alleviation 1 49 or removal of such effects, and an insufficiency of money exists . in the Revenue Fund to meet such emergency; or (b) Making replacements, additions, extensions and improvements deemed by the governing body of the Town reasonable and necessary and to the best interests of the Town and the certificate holders; or (c) Paying the pincipal of and interest on the certificates falling due at any time for the payment of which money is not available in the Sinking Fund. After there has been paid from the Revenue Fund for each Sinking Fund year all amounts and in the manner hereinabove required to be made, there shall next be paid on or before August 1 of each year not less than thirty -three and one -third per centum (33 1/3%) of all remaining available monies in sail Revenue Fund into the Sinking Fund and used only for Sinking Fund purposes in calling and redeeming the certificates prior to maturity, as provided in Article I of this Ordinance, and the remaining monies not used for this purpose may be withdrawn by the Town and used for any lawful municipal function. Section 4. The Town covenants and agrees that at the time it purchases the existing water works facilities that it will prescribe and place into effect a schedule of rates, fees and charges for the services, facilities and commodities to be furnished by its water system at not less than the rates, fees and charges iiow being, _• charged by : the ` Tybee Water Works Company, and it will at all times and from time to time, as often as it ,shall appear necessary or advisable, revise and adjust such schedule of rates, fees and charges as may be necessary to produce funds sufficient at all times to maintain and operate said water system on a sound businesslike basis, and to provide sufficient revenues for the creation and maintenance of a Sinking; Fund, which shall-be sufficient to discharge the payment of the principal and interest requirements in the current Sinking Fund year, and in addition, to create and maintain a resd.rve for that purpose of not less than $25,000. In the event the Town shall fail to adopt a schedule or schedules of rates, fees and charges, or to revise its schedule or schedules of rates, fees and charges, in accordance with the provisions of this Section, any certificate holder, without regard to whether any default, as defined in Article VI of this ordinance, shall have occurred, may institute and prosecute in any court of. competent jurisdiction an appropriate action to compel the Town to adopt a schedule or schedules of rates, fees and charges, or revised schedule or schedules of rates, fees and charges, in accordance with the requirements of this Section. Section 5. All transfers from the Revenue Fund, and all payments from said Fund into other funds, or to other sources, shall be made by check signed by the Mayor, or Mayor Pro Tem, and countersigned by the Clerk of Council of the Town. Section 6. The Town covenants and agrees that the 50 Sinking Fund herein provided will be kept in a bank separate from the other deposits, to be designated as "Sinking Fund ✓ Custodian ", and said Sinking Fund Custodian be and is hereby designated as Savannah Bank and Trust Company of Savannah Savannah, Georgia, said Custodian to comply with all necessary requirements as hereinafter more specifically provided under Article V of this ordinance. Savannah Bank and Trust Company of Savannah, Savannah, Georgia, is hereby designated as the Paying Agent for the certificates. The Town may from time to time designate a successor Sinking Fund Custodian, provided said Custodian complies with the provisions of Article V of this ordinance. Section ?. Subject to the terms and conditions set forth in this ordinance, if the Sinking Fund is maintained in a bank different from the paying agent, monies in the said Sinking Fund shall be disbursed by the Mayor and Council to the paying agent and used for: (a) the payment of interest upon certi- ficates secured hereby as such interest falls due, and (b) the payment of the principal of the certificates secured hereby at their respective maturities, and (c) the redemption of certificates secured hereby before maturity at the price and under the conditions provided therefor in Article I hereof, and (d) the purchase of certificates in the open market, provided, however, the price pail shall not exceed the fair market value of the certificates at the time of purchase, and (e) the payment of the necessary charges of the paying agents for paying certificates and interest. If the Sinking Fund Custodian and the paying agent is the same bank acting in both capacities, then the Sinking Fund Custodian shall, without any further direction on the part of or authorization from the governing body of the Town, use and disburse the monies in said Sinking Fund as hereinabove provided, except if the Town redeems or buyp any certificates as provided by paragraphs (c) and (d) above, then proper authorization and direction shall be furnished for such use and distribution of said funds. Monies in the Sinking Fund not required to pay the interest falling due on June 1 or not required to pay the principal and interest on said certificates falling due on December 1 in any Sinking Fund year may, in the discretion of the Mayor and tqa 1 1 1 51 Councilmen, and after proper resolution of said body, be invested in United States short term notes or certificates or in United States bonds of a stated redemption value. Any such securities so purchased shall be placed with the Sinking Fund Custodian and by it held until paid at maturity or sold by the Mayor and Councilmen, the proceeds thereof, including interest, principal and premium, if any, to be immediately deposited to the credit of said Sinking Fund. The monies in the Sinking Fund and all securities held in and for said fund, and the income therefrom, are hereby pledged to and charged with the payments mentioned in this Article. Section 8. Monies in the Renewal and Extension Reserve Fund not needed for immediate use for any one or more of the stated purposes in subparagraphs (a) through (c) of Section 3 of this Article, may, in the discretion of the Mayor and Councilmen and after proper resolution oX said body, be invested in United States short term notes or certificates. Any such securities so purchased shall be held for the benefit of said fund and can be rased for no other purpose, and if the securities are held until maturity or sold, all the proceeds thereof, including interest, principal and premium, if any, shall be immediately deposited to the credit of said fund. Section 9. Any monies not derived from the revenue of the system which may be paicl to the Town any time for the prchase or retirement of certificates, shall be placed in the Sinking Fund and applied to such purpose so far as possible in the same manner as other monies in the Sinking Fund. Section 10. All certificates paid, redeemed, or purchased either at or beyond maturities, together with all nonmatured coupons appertaining thereto, and such certificates and coupons shall thereupon be cancelled and mutilated and shall not be reissued; record of such cancellatioh and mutilation to be filed with the Clerk of Council and with the Sinking Fund Custodian. Section 11. After provision shall be made for the payment of all certificates secured hereby and the interest thereon, and all expenses and charges herein required to be paid, any balance in the Sinking Fund shall be paid to any body or authority entitled to receive the same. ARTICLE V DEPOSITORIES OF MONIES AND SECURITIES FOR DEPOSIT Section 1. Except as otherwise provided in this ordinance, all monies received by the Municipality under the terms hereof shall, subject to the giving of security as hereinafter provided, be deposited with the Depository, or with the Sinking Fund Custodian in the name of the Municipality. All monies deposited under the provisions hereof shall be applied in accordance with the terms and for the purposes as set forth in this ordinance, and shall not be subject to lien or attachment by any creditor of this Municipality. 52 No monies belonging to any of the funds created hereunder shall be deposited or remain on deposit with the Depository and /or Custodian, in an amount in excess of the amount guaranteed by the Federal Deposit Insurance Corporation, or other Federal agency, unless such institution shall have pledged for the benefit of the Municipality and the holders of the certificates, as collateral security for the monies deposited, direct obligations of, or obligations the principal and `:interest of which are unconditionally guaranteed by the United States Government, or other marketable securities eligible as security for the deposit of trust funds under regulations of the Board of Governors of the Federal Reserve System and having a market value (exclusive of accrued interest) at least equal to the amount of such deposits. ARTICLE VI PARTICULAR COVENANTS The Municipality covenants: Section 1. That it will promptly pay the principal of, and hterest on, every certificate issued hereunder and secured hereby at the place, on the dates and in the manner herein, and in said certificates and in the coupons thereto appertaining, specified, and any premium required for the redemption of said certificates, according to the true intent and meaning thereof, The principal, interest, charges of the paying agent and premiums, if any, are payable solely out of the revenues of the system, which revenues are hereby pledged to the payment thereof in the manner and to the extent herein - above particularly specified, and nothing herein or in the certificates or coupons shall be construed as obligations of the Municipality to 1eyy»or'to pledge any form of taxation whatever therefor or to make any appropriation for their payment, except from revenues of the system, and no certificate holder Shall have any recourse to the power of taxation. Section 2. That at all times as long as the certificates herein authorized are outstanding the Municipality will enforce reasonable rules and regulations governing the system and the operation thereof, and that all compensation, salaries, fees and wages paid by it in connection with the maintenance, repair and operation of such system will be reasonable, and that no more persons will be employed by it than are necessary, and that it will operate same in an efficient and enonomtcal manner, and will at all times maintain the same in good repair and in sound operating condition, and will make all necessary repairs, renewals and replacements, and that it will comply with all valid acts, rules, regulations, orders and directions of any legislative, executive, administrative or judicial body applicable to such undertakings and enterprise. Section 3. That any contracts for labor or materials or construction shall also provide that payments thereunder shall not be made by it in excess of ninety per cent (90 %) of current estimates, except payment of the final balance under any such contract. 531 Section 4. That it will not create or suffer to be created, in the operation and maintenance of the system, any lien or charge thereon, or any part thereof, or upon the revenues derived therefrom, ranking equally with or prior to the lien and charge herein authorized upon such revenues, and that it will pay, or cause to be discharged, or will make adequate provisions to satisfy and discharge, within sixty (60) days after the same shall accrue, all lawful claims and demands for labor, materials, supplies or other objects, which, if unpaid, might by law become a lien upon such system, or any part thereof, or upon the revenues therefrom; provided, however, that nothing contained in this Section shall require the Municipality to pay, or cause to be discharged, or make provision for, any such lien or charge, so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings. Section 5. That it will carry adequate public -775G, /cc liability insurance and will insure and at all times keep the following properties belonging to the system insured to the full insurable value thereof in a responsible insurance company, or companies, authorized and qualified under the laws of the State of Georgia to assume the risks thereof against loss or damage thereto from the following causes: All buildings and all machinery and equipment therein against loss or damage . by fire, lightning, tornado or winds; All other property against loss or damage by fine or lightning if the same is not fireproof, and against loss or damage from other causes customarily insured against by companies engaged similar business. All such policies shall be for the benefit of and made payable to the Municipality and shall, be on deposit therewith. The proceeds of all such insurance policies, eXcept the public liability policies, are pledged as security foqr the certificates, but shall be available for and shall, to the extent necessary and desirable, be applied to the repair and replacement of the damaged or destroyed property. All insurance policies shall be open to the inspection of the certificate holders and their representatives at all reasonable times. Section 6. That it will keep the funds and accounts of the system separate from all other funds and accounts of the Municipality, or any of its departments, and that it will keep accurate records and accounts of all items of cost.and all expenditures relating to the system, and of the revenues collected and the application thereof, and of the number of consumers, and that it will keep said records and accounts with respect to its physical properties in such manner that it will be possible at all times to identify both the amounts and the items of all additions and retirements. Such records and accounts shall be 54 open to the inspection of all interested persons. Section '. That at least semi- annually it will cause to be filed with the original purchasers of the certi- ficates issued hereunder copies of any material revisions of charges and fees or change in management during the preceding six months and a report, signed by the proper officers of the Municipality, setting forth in respect of the preceding six months and of the twelve months period ending with such last month: (a) A separate income and expense account of such system; (b) All payments to and withdrawals from the various funds created herein; (c) The aggregate amount of certificates issued, paid, purchased or redeemed; (d) A balance sheet as of the end of said six months; (e) The amount on deposit at the end of such six months period to the credit of each of the funds. Section 3. That in the month of May of each year, or as soon thereafter as practicable, it will cause an audit to be made of its books and accounts pertaining to the system by an independent and recognized firm of Certified Public Accountants of suitable experience and responsibility, to be chosen by the governing body of the Municipality. Such semi - annual reports and audit reports shall be open to the inspection of all interested persons and a copy of same sent to the original purchasers of the certificates. It will also cause any additional reports or audits relating to such system to be made, as required by law, and that from time to time as often as may be requested, it will furnish to the original purchasers of certificates issued hereunder such other information concerning such system, or the operation thereof, as any of them may reasonably request. The auditor's report should also contain comments regarding the manner in which the Municipality has carried out the requirements of this ordinance and his recommendation for any change or improvement in the operation of the System and also the number of metered water customers at the end of the fiscal year and the number of unmetered water customers at the end of said year. The cost of audits shall be treated as a part of the cost of operation. Section 9. That so long as any of the crrtif i cates shall be outstanding, it will not sell or otherwise dispose of, or encumber, the system, or any part thereof, and will not create or permit to be created, any charge or lien 55 on the revenues of such system, now to be acquired and as hereafter extended and improved, ranking equally with, or prior to, the charges or lien of the certificates issued under and secured by this ordinance, except such certifi- cates or obligations as be authorized and issued pursuant to Sectinn 1 of Article I of this ordinance and except it may sell such system as a whole, or substantially as a whole, if the proceeds of such stae shall be at least sufficient to povide for the redemption of all certificates and any interest accrued, or to accrue, authorized under and secured by this ordinance, and that the proceeds of any such sale shall be deposited with the Sinking Fund Custodian in trust, and by it applied to the extent necessary to the purchase or redemption of such certificates. There is to be acquired in the purchase of the Tybee Water Works certain real estate which is now believed not essential in the operation of a water system and possibly same should be sold and if it be so determined to sell same, then the proceeds of such.sale shall be deposited in the renewal and extension reserve fund and disposed of as therein provided. ARTICLE VII REMEDIES Section 1. Each of the following events is hereby declared an "event of default," that is to say, if: (a) Payment of the principal of any of the certificates shall not be made when the same shall become due and payable, either at its maturity or by proceedings for redemption; (b) Payment of any installment of interest shall not be made when the same becomes due and payable, or within thirty (30) days thereafter; or (c) The Municipality shall, for any reason, be rendered incapable of fulfilling its obligations hereunder; or (d) An order or decree shall be entered, with the consent or acquiescence of the Municipality, appointing a Receiver, or Receivers, of the system, or of the revenues thereof, oroany proceedings shall be instituted, with the consent or acquiescence of the Municipality, for the purpose of effecting a composition between the Municipality and its creditors, or for the purpose of adjusting claims of such creditors, pursuant to any Federal or State statute now or hereafter enacted, if the claims of such creditors are under any circumstances payable out of the revenues of the system, or if such order or decree, having been entered without the consent and acquiescence of the Municipality, 56 shall not be vacated or discharged or stayed on appeal within sixty (60) days after entry thereof, or if such proceedings, having been instituted without the consent or acquiescence of the Municipality, shall not be withdrawn, or any oerders entered shall not be vacated, discharged or stayed on appeal, within sixty (60) days after the institution of such proceedings, or the entry of such orders; or (e) The Municipality shall make a default in the due and punctual performance of any other of the covenants, conditions, agreements or provisions contained in the certificates or in this ordinance, on the part of the Municipality to be performed, and such default shall continue for thirty (30) days after written notice, specifying such default and requiring same to be remedied, shall have been given to the Municipality, by any certificate holder. Section 2. Upon the happening and continuance of any event of default specified in Section 1 of this Article, then and in every such case the holders of not less than fifty - five (55jo) per cent in the principal amount of the certificates then outstanding may, by a notice in writing tothe Municipality, declare the principal of all of the certificates then out- standing (if not then due and payable) to be due and payable immediately, and upon such declaration the same shall become and be immediately due and payable, anything in the certificates or herein contained to the contrary not withstanding; provided, however, that if at any time after the principal of the certificates shall have been so declared to be due and payable, all arrears of interest, if any, upon all the certificates then outstanding, and all other indebtedness secured hereby, except the principal of any certificates not then due by their terms, and the interest accrued on such certificates since the last interest payment date, shall have been paid, or shall have been provided for by deposit with the paying agent of such certifi- cates, or herein contained, shall be made good, or provisions therefor satisfactory to such certificate holders shall have been made, then and in every such case the holders of not less than fifty -five (55%) per cent in principal amount of the certificates then outstanding may, by written notice to the Municipality, rescind and annul such declaration and its consequence, but no such rescission or annulment shall extend to, or affect, any subsequent default or impair any right consequent thereto. Section 3. Upon the happening and continuance of any event of default as ,provided in Section 1 of thiA Article, then and in every such case any certificate holder may proceed, subject to the provisions of Section 5 of this Article, to protect and enforce the rights of the certificate holders hereunder by a suit, action or special proceedings in equity, or at law, either for the appointment of a Receiver of the system as authorized by the Revenue Certificate Law, or for the special performance of any covenant or agreement contained herein or in aid or execution of any power herein granted, or for the enforcement of any proper legal m equitable remedy as such certificate holder shall deem most effectual to protect and 57 enforce the rights aforesaid, in so far as such may be authorized by law. Section 4. In case any proceeding taken by any certificate holder on account of any default shall have been discontinued or abandoned for any reason, or shall have been determined adversely to such certificate holder, then and in every such case the Municipality and the certificate holders shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies, powers and duties of the certificate holders shall continue as though no such proceedings had been taken. Section 5. No one, on more, holders of the certificates secured hereby shall have any right in any manner whatever by his or their action to affect, disturb, or prejudice the security granted and provided for herein, or to enforce any right hereunder, except in the manner herein provided, and all proceedings at law or in equity shalLbe instituted, had and amintained for the equal benefit of al holders of such outstanding certificates and coupons. Section 6. No remedy herein conferred upon the certificate holders is intended to be exclusive of any other remedy, or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity, or by statute. Section 7. No delay or omission of any certificate holder to exercise any right or power accruing upon any default occurring and continuing as aforesaid, shall impair any such default or be construed as an acquiescence therein; and every power and remedy given by this Article to the holders of the certificates, respectively, may be exercised from time to time and as often as may be deemed expedient. ARTICLE VIII MISCELLANEOUS PROVISIONS AND DEFINITIONS Section 1. Any bank or trust company with, or into which, the paying agent mentioned in Section 6 of Article TV of this ordinance may be merged or consolidated, or to which the assets and the business of such paying agent may be sold, shall be deemed the successor of such paying agent for the purposes of this ordinance. Whenever used in this ordinance, the singular shall include the plural and the plural shall include the singular, unless the context otherwise indicates. Section 2. In case any one or more of the provisions of this ordinance or the certificates or coupons issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other 58 provisions of this ordinance, or said certificates or coupons, but this ordinance and said certificates and coupons shall be construed and enforced as if such illegal or invalid provisions had not been contained therein. Section 3. The provisions of this ordinance shall cmnstitute a contract by and between Savannah Beach, Tybee Island, Georgia, and the holders of the certificates authorized to be issued hereunder, and after the issuance of said certificates, this ordinance shall not be repealed or amended in any respect which will adversely affect the rights and interests of the holders of said certificates, nor shall the governing body of the Town pass any ordinance in any way adversely affecting the rights of such holders, so long as any of the certificates authorized by this ordinance, or the interest thereon, shall remain unpaid. Any subsequent ordinance, or ordinances, authorizing the issuance of all or any part of the certi- ficates provided for under Section 1, Article I of this ordinance shall in nowise conflict with the terms and conditions of this ordinance, but shall for all legal purposes, contain all the covenants, agreements and provisions of this ordinance for the equal protection and benefit of all certificate holders. Section 4. The term "Mayor and Councilmen of Savannah Beach, Tybee Island" or "N9ayor and Councilmen of Savannah Beach" shall be construed to mean the present governing body of that municipality created by the Acts of the General Assembly approved August 21, 1922 (Ga. Laws 1922, page 987, et seq., and any successor or successors in office to said present body, and any person, body or authority to whom or which may hereafter be delegated by law the duties, powers, authority, obligations or liabilities of the present body, either in whole or in relation to the ater system. The terms "Town of Savannah Beach11, "Town of Savannah Beach, Tybee Island," "Savannah Beach" and "Savannah Beach, Tybee Island" shall mean one and the same, and particularly that municipality just above referred to in the preceding paragraph. The terms "System" and "Water System11 shall be construed as one and the same and shall mean the usual facilities now or hereafter owned by the Town and used by it in furnishing water services. The term "project superintendent" shall be construed to mean the engineering firm of Thomas & Hutton, Savannah, Georgia, and its successors or such other engineer or engineering firm that might be hereafter employed by the Town in relation to the supervision of the acquisition and improvement of the water system. Section 5. The term "fiscal year shall mean the 59 period commencing on the first day of May and ending on the last day of April of the following year. The term "Sinking Fund year's shall mean the period commencing on the first day of December and ending on the last day of November of the following year. Section 6. Any and all ordinance, or parts of ordinances, in conflict with this ordinance this day passed, be and are hereby repealed, and this ordinance shall be in full force and effect from and after its adoption. * * * * * * * * * * GEORGIA, CHATHAM COUNTY. I, ,.Clerk of Council of Savannah Beach, Tybee Island, Georgia, DO HEREBY CERTIFY that the foregoing pages of typewritten matter constitute a true and correct copy of ordinance passecL by the. Mayor .and Councilmen of said Town on the day of 1950, in connection with. the issuance of 53165,000 Water Revenue Anticipation Certificates, the original of which ordinance is in the Clerk of Council's Office of Savannah Beach, Tybee Island, Georgia. This the day of ( SEAL ) 1950. Clerk of Council . Councilman Smith moved that the Solicitor - General of the Eastern Judicial Circuit of Georgia be notified to file suit in the Superior Court to authorize the validation of 0165,000.00 of Water Revenue Anticipation Certificates for the purchase of the Tybee.'.fnter Works System. Councilman Meddin seconded and the motion passed unanimously. Councilman Lovell moved that the Finance and Water Committee be authorized to employ the necessary personnel and arrange salaries, etc. in connection with the water system. Councilman Meddin seconded and the motion passed unanimously. The Mayor instructed Mr. Reed to check on things relating to the Water Works System and instructed him to request Mr. Smith of the Savannah Electric Company to read the electric meters as of midnight November 30th and, also, request Mr. A. P. Solomon, Jr. to read the water meters at 60 the same time. Councilman Smith stated that a schedule of water rates should be set up, that he found, in checking with the Tybee Water Works about 13 metered users, the users purchased the meters and paid for their installation. The Mayor instructed Mr. Lang that in connection with the purchase of the Tybee Water Works that he lend the :Committee any assistance they need. A letter was read from Mr. A. P. Solomon, Jr. offering to cooperate with the Town after its acquiring the Water Works System and requesting, that the Town be lenient with him in the event that he purchases from the Town the property where he now lives and operates his business. It was decided that he would not be compelled to move right away, and, also, to wait and see what his attitude will be, and if necessary put the property on a rental basis. The Mayor appointed th@ fallowing' Committee to..check the Water Works System and get an inventory, Councilmen Lovell and Smith, Mr. J. J. Hutton and Superintendent Reed. The Committee was requested to contact Mr. Bruce Sams, as his advice would be helpful in a matter of this kind. The Mayor informed Council that he had attended the Parent- Teachers 1ssociation Meeting at the School House on Wednesday and he was informed that the Merchants Council in Savannah wants the Tybee School represented in the Parade; he advised them that the Town would cooperate. Mr. Reed stated that he now has a total of 14 prisoners and that he needed some more men; also, that he had been digging up some of the pipe in Fort Screven, and was advised by the Mayor not to do this without proper authority. In connection with 0. S. Blair returning to the Public Works Department and K. P. Mock returnipg to the Police Department, Councilman Hosti stated that he had spoken to Councilman Peters and that they had agreed to it. Mr. Blair had stated that he was to be made Lieutenant of Police. Councilman Smith moved that the salary of O. S. Blair be X172.50 per month effective November 1st, 1950. Councilman Lovell seconded and the motion passed. Councilman Meddin moved that bills for the month of October amounting :ta: 994:-00 be paid. Councilman Smith seconded and the motion passed. The Mayor asked what was to be done toward making arrangements for sounding the fire alarm after December 1st; he, also, wanted to know what was being done about housing the Ambulance in the Jail. The Mayor informed Council that the Town was being sued, along with Milton Levison, by Mrs. Benita Corcoran and others in an effort to stop the operation of a boat livery 61 business on Mr. Levison's property. The matter was referred - to the Town Attorney. Councilman Hosti moved that the following Resolution be adopted; Councilman Lovell seconded and the motion passed. A RESOLUTION WHEREAS, the Parent Teachers Association of Tybee School at a regular meeting held. on November 8, 1950, adopted a Resolution requesting the Board of Education of Chatham County to erect, build and equip a new School enlarging said School grades from the first through the 8th to be taught; and, WHEREAS, the Mayor and Councilmen of the Town of Savannah Beach, Tybee Island, Georgia, are cognizant of the fact of the deplorable condition now existing in the Tybee School, a Public School; and, WHEREAS, this Council realizing that the School is inadequate to properly house and educate the present enrollment and that it would be a physical impossibility to house and /or educate any additional pupils and to retain their present standards of accredited teaching; and, WMREAS, it has been brought to the attention of this Council that the roof on the present building is in bad - condition, that the heating system is a very serious fire hazard, that the equipment in said School is very poor and inadequate, and that the present room space is entirely too small; and, WHEREAS, the present building was built on or about the year 1918 and that, since that time, there have been very few improvements made on said building, and that the present enrollment of 96 pupils with 3 Teachers does not meet the accredited standing of a Public School; NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Savannah Beach, Tybee Island, Georgia, in regular monthly meeting assembled and it is hereby resolved by authority of the same that the Resolution adopted by the Parent Teachers Association of the Tybee School be and the same is hereby approved and endorsed by this Council and.the Mayor be and he is hereby authorized to personally appear before the Board of Education of Chatham County, together with a Committee named by the President of the Parent Teachers Association of the Tybee School to present this Resolution requesting the Board of Education to erect, build, equip and maintain a new Public School at Savannah Beach to properly 62 house and educate all the pupils in said municipality from the first through the eighth grades, inclusive. RESOLVED FURTHER,, that the Mayor and Council- men do hereby agree that they will deed to the Board of Education of Chatham County, Georgia, sufficient land adjacent to Memorial Park to erect a new School Building. There being no further business, Council adjourned, subject to the call of the Mayor. CC 1 Clerk of . Council: Mayor *•* * * * ** see page 67 for special TFeeting held November 29, 1950. w° *s ********* sa* Savannah Beach, Tybee Island, Ga. December 19, 1950 The regular meeting of Town Council was held today at 4 P. M. in the Council Room and was attended by Mayor Dutton, who presided, Councilmen Peters, Smith, Meddin, Hosti, Lovell, Town Attorney Solms, Fire Chief E. J. Solomon, Supt. Reed, Chief McCutchen. Chief Solomon called attention to the lack of heating facilities by those users of propane gas due to a shortage, and suggested that for the time being Council pass up the present ordinances covering the erection of chimneys and etc., his idea was that if necessary precautions were taken that other arrange- ments could be made until the present emergency is passed. The Mayor appointed a committee of Mr. Solomon and Mr. Reed to handle the matter. The minutes of the meetings held on October 19th, Octo- ber 26th, October 31st and November 9th were read and adopted. Councilman Meddin moved that bills for the month of November amounting to $694.90 be paid, Councilman Peters second- ed and the motion passed. Councilman Meddin stated that the Seaview Developement Company, the owners of Hotel Tybee, had requested that the north- ern portion of the north parking area be swapped with them for an equal amount of property on 15th Street near the Strand, owned by them. The Mayor stated that it would be necessary to hold an elec- tion to convey any part of the Strand, it was decided to refer the matter to the Finance Committee and Town Attorney Solms and they to contact the Hotel Tybee owners for a conference. Councilman Meddin discussed the finances of the Town and stated that there is a balance of approximately $28,000.00 in the bank. 1 1