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Savannah Beach, Georgia
May 14, 1972
A Special Meeting of City Council was held this afternoon at
1100 P.M. in the Council Room at Savannah Beach City Hall for
the purpose of:
(1) Approving the OFFER TO PURCHASE AGREEMENT from Varnedoe,
Chrisholm, Skinner & Co., Inc. in regard to the issuance
of $1,455,000.00 City of Savannah Beach, Georgia, First
Lien Water and Sewer Revenue Bonds, to be dated May 1, 1972.
(2) To enter into a Contract with the Chatham County Commissioners
which will provide $60,000.00 annually to the City beginning 1972 and continuing through the year 2003, for the purpose
of financially assisting the City in its Pollution Abatement
Program. This Contract is to be made effective retro - actively
to January 1, 1972.
The Meeting was presided over by Mayor Michael J. Counihan and the
following Councilmen were in attendance: Edward Jung, Robert F.
Cary, James Stettler, Edward Towns, Perry A. Zittrauer, Jr., and
George Schwarz. City Attorney Bart Shea was also in attendance.
City Attorney Shea read the Offer to Purchase Agreement directed
to the Mayor and Council of the City of Savannah Beach from
Varnedoe, Chisholm, Skinner & Co., Inc., dated May 11, 1972. He
stated that this agreement was in regard to the issuance of
$1,455,000.00 City of Savannah Beach, Georgia, First Lien Water
and Sewer Revenue Bonds, to be dated May 1, 1972 and due May 1,
as follows:
OFFER TO PURCHASE AGREEMENT
(Between City of Savannah Beach and Varnedoe, Chisholm)
Councilman Jung moved the adoption and ratification of this
agreement. The motion was seconded by Councilman Cary and
unanimously carried.
City Attorney Shea then read a new revised contract between the
City of Savannah Beach and the Chatham County Commissioners in
regard to the annual payment of $60,000.00 which will be made by
Chatham County to the City of Savannah Beach to help in the
financing of the Pollution Abatement Program; also to make it
retro- active to January 1, 1972.
POLLUTION CONTRACT WITH CHATHAM COUNTY
City Attorney Shea then read a Resolution authorizing the City
Attorney to prepare a contract in conjunction and in cooperation
with the County Attorney; the terms, provisions and contents of
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such contract to be agreed upon by the City and Chatham County and
the effective date of such contract be made retro - actively effective
as of January 1, 1972. Councilman Jung moved the adoption of this
Resolution. The motion was seconded by Councilman Cary and
unanimously carried.
R E S O L U T I O N
There being no further business the meeting was adjourned to the
next regular or special called meeting.
CLERK OF COUNCIL
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• VARNEDOE, CHISHOLM, SKINNER & CO., INC.
Member: Philadelphia-Baltimore-Washington Stock Exchange
Associate Member: Boston Stock Exchange
One Bull Street
Savannah, Georgia 31401
May 11, 1972
Mayor and Council
City of Savannah Beach
Savannah Beach, Georgia
Gentlemen:
We understand the City of Savannah Beach has received a final
engineering report, prepared by Thomas and Hutton, which wal
necessitate the issuance of $1,455,000 City of Savannah Beach,
Georgia, First Lien Water and Sewer Revenue Bonds, to be dated
May I, 1972 and due May 1 as follows:
Date Amount Date Amount Date Amount
1974 $15,000 1984 $30,000 1994 $6o,000
1975 15,000 1985 30,000 1995 65,000
1976 15,000 1986 35,000 1996 70,000
1977 15,000 1987 35000 1997 75,000
1978 20,000 1988 40,000 1998 80,000
1979 20,000 1989 40,000 1999 85,000
1980 20,000 1990 45,000 2000 90,000
1981 25,000 1991 50,000 2001 100,000
1982 25,000 1992 50,000 2002 105,000
1983 25,000 1993 55 000 2003 120,000.
The undersigned proposes to purchase these bonds at the following
interest rates:
6.50% on bonds maturing 1974/1982, inclusive,
6.75% on bonds maturing 1983/1990, inclusive,
6.90% on bonds maturing 1991/2003, inclusive,
at a price of $1,425,000 plus accrued interest from the date of
the bonds to the date of delivery.
This purchase agreement is subject to our approval of all ordinances,
resolutions and legal proceedings (including documents executed by
Chatham County providing for an annual payment of $60,000 to the City
of Savannah Beach, Georgia which shall be pledged for the payment of
these bonds) and the legal opinion of Messrs. Oliver, Maner and
Gray, Savannah, Georgia.
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Legal expenses are to be paid by the City of Savannah Beach.
Cost of printing the bonds will be paid by the .purchaser.
Prior to the delivery and payment for the bonds the City must
have employed a firm of Certified Public Accountants whose
responsibility will be to assist the City in setting up bookkeep-
ing procedures for the operations of the Water and Sewer System.
Said bookkeeping procedures shall provide a quarterly operating
income and expense report to the initial purchaser of the bonds.
It is understood and agreed that should the delivery of the bonds
be delayed beyond a period of 60 days from the date of this contract
the purchaser shall be under no obligation to accept and pay for
such bonds, but shall have an option to purchase said bonds at the
price set out in this contract for an additional 60 days.
Respectfully submitted,
VARNEDOE, CHISHOLM, SKINNER & CO., INC.
JOHNSON, LANE, SPACE, SMITH & CO., INC.
By: Signed by Sam L. Varnedoe
Chairman Emeritus
Varnedoe, Chisholm, Skinner & Co.,Inc.
At a meeting of the Mayor and Council of the City of Savannah Beach,
Georgia held on May 14. 1972 , the foregoing offer
was accepted and ordered entered on the minutes.
ATTEST:
Signed by M. J. Counihan Signed by E. M. Patterson
Mayor City Clerk
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STATE OF GLORGIA )
COUNTY OF CiJ TaAki )
ITS THE CO 2 ISSIO ERS" COURT
AGRLEMENT made and entered as of the Zaa.day
of 1972, and made retroactively effective as of
January 1, 1972, by and between Chatham County, a political
subdivision of the State of Georgia, hereinafter referred to
in this Agreement as :COUNTY" anu the Mayor and Councilmen of
the City of Savannah Beach, 'tytee Island, a municipal corporation..
organized and existing under the laws of the State of Georgia,
nereinafter referred .to in this agreement as "CITY";
: W I T H SSE T U
WEE_ AS, it is necessary and desirable in the interest of
health and the welfare of ail .people of this County that Gila
Creeks, Streams and Rivers and all bodies of water lying within
the confines and adjacent to the boundaries of said Chatham County
be .free and clear of all pollution, contamination, and especially
free of sanitary waste, which has not been properly treated; and
WELREAS , the City and County are authorized by law to
provide health and sanitation programs for the citizens of its
communities; and
%i ERAS, upon Petition of the Town of Vernonburg and
numerous citizens and Taxpayers of said County, the Tudge of the
Superior Court of Chatham County by order dated Ocrober 19, 1971,
directed that the parties hereto and the Metropolitan Planning
Co =mission of said County impose upon all construction the obli-
gation to convey its waste to an. appropriate disposal facility or
to otherwise :neat the requirements of the State Water Quality
Control Board of the State of Georgia and that the parties hereto
and other municipalities within said County provide tile necessary
facilities to abate water pollution and to treat sanitary waste;
and
W L L AS, it i3 necessary to finance such pollution abatenen
programs, sanitary sewage plants and facilities, and of per
necessary appurtenances thereto consisting of trunk line sewers
and collection systems for the purpose of collecting, treating
and discharging sanitary sewage waste materials in a :.tanner
consistent with the regulations and provisions of the State
Water Quality Control Board of the State of Georgia and the
provisions os the Department of Public Health of State of
Georgia and to meet construction schedules as ordered by the
Court and the State Water Quality Control Board of the State
of Georgia; and
WHx;REAS, Lae Constitution of the State of Georgia, provides
that Cities and Counties of tais State may contract for. any
period not exceeding fifty years, with each other for the benefit
of such subdivisions as provided in Article VII, Section VI,
Paragraph I, (a) and (b) ; (Ga. Cod:: A nno. S2-5901);
NOW, THZRLFORE, for and-in consideration of the mutual
covenants and agreements hereunto flowing between the County and
the City and for the purses hereinbefore set forth, the County
and tina3 City do hereby mutually covenant and agree as follows,
to wit.
-- 1_ The City will proceed with the construction of sewage
collection and treatment facilities as directed by the Court in
accordance with the schedule for the construction of such facility
as approved by the State Water Quality Control Board of the State
of Georgia and in accordance with the standards and specifications
of said Board. A copy of the miN 'z a' S REPORT ON SANITARY SEWAGE
SYSTEM FOR . THE CITY OP SAVANNAH BEACH, GEOP.GtA, "d, ate. March 30,
1972, is marled *Exhibit "AI' and is hereto attached and made a.
part of this Agreement.
2. The County will levy a tax under its taxing powers as
set fora in the Constitution of the State of Georgia, Article VII,
Section VI, Paragraph 3, (Ga. Coda Aano. 52 -5701) and laws of the
State of Georgia relating thereto, which. said tax shall be levied
under the general taxing powers of tae County so that it will
provide funds from which shall be paid to the City in consideration
of the performance by the City of its obligations undertaken herein,
the sem of Sixty Thousand and no/10a Dollars ($60,000.00) annually,
the first of suca $60,000.00 payments being due and payable on
November 1, 1972 and annually thereafter through the year 2003.
3. In consideration of tact payment of the sum of money
provided for in Paragraph 2 above, the City shall provide
facilities for the treatment of sanitary sewage waste to abate
pollution in the creeks, streams, rivers and bodies of water
lying within the confines of and adjacent to tne Aou tdariea of
Cnatrtam County in accordance with the standards and specifi-
cations of the State: Water Quality Control Board of the State
of Georgia, and the City may pledge the amount to be paid by
tine County under . this contract to pay principal and interest
of any issue of water and sewer revenue bonds issued by the
City to pay for the construction. -.of such facilities,
4.. It is further agreed that upon completion of the
construction of suc4 sewage treatment facilities as hereinabove
provided, there will be established by the County performance
controls as necessary to insure that :the treatment of sewage
meets the standards of the State Water Quality Control Board
of tne State of Georgia and other agincias-legaily-emPaweredto
establish such standards, and the necessary supervision will be
exercised over the operation of said sewage treatment facilities
to insure that such standards are met and maintained.
5. In the event that the City shall fail to operate said
sanitary sewage treatment facilities in accordance with. the -
stanciards now established or standards hereafter established by
t a State Water Quality Control Board of the State of Georgia .
and such failure to meet said standards shall be confirmed and
verified by the State Water Quality Control Board of the State
of Georgia or other appropriate agency legally empowered to .
establish said standards, then the County shall have the right by
mandamus, specific performance, or otherwise to compel and require
performances fey the City of its obligations undertaken herein in
order to bring the operation of said facility or facilities up
to the said quality control standards of the State Water Quality
Control Board of the State of Georgia. In no event, however, shall
there be any abatement or suspension of the payments herein covenantee
to be made by the Cou:hty to the City.
6. 'Tee existing primary sewage treatment plant located
at Polk anti Bay S tr :eta siaa1l be abandoned, and a new activated
sludge type treatment plant will be built on a 6 -1/2 acre tract .
adjacent to the current primary treatment plant, and such facility
shall be adequate to meet sewage treatment requirements of a
population of 10,000 people. Such sewage treatment facilities
are to be completed and schedules for construction of the same .
are to be concluded in accordance with requirements of the State
Slater Quality Control Board of the State of Georgia and the permit
issued by said Board to said City dated December 31, 1971.
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7. Ti sewage treatment services to be provided by the
facilities herein established shall be in accordance with the
master plan for caatha n County as proposed, and as it may here-
after be modified and amended, by the Chatham. County - Savannah
Metropolitan Planning Commission, and the economic feasibility
of extending such sewage treatment service shall be determined by
the parties hereto on the basis of the best information and
professional recommendations available to them. The last revision
of the metropolitan Planning Commission Report was updated June,
1971, and the reference thereto is incorporated herein.
S. Tne City will consider the providing of domestic
water an integral part of the sewage collection and trcatraent;
operation and metered or billed charges made to users will include
the cost of providing water, the cost of collection and trans-
porting sewage to the sewage treatment facilities herein provided
for and the cost of such treatment and the disposal of the effluent;
provided, however, that in addition to such User" charges, all or
a portion of the initial cost of providing the necessary systems,
lines anc connections from tha point of origin of sewage to be
collected, transported and treated may be provided for by a non-
recurring connection fee to be assessed against the new users or
connections to tie system, said fce to be determined by the City.
9. In the establishment of "user" charges for water and
sewage, they City anall make such charges and set rates in aeeoraance
witz t.ie covenants contained in the resolutions adopted or hereafter
to be at ojtea, for the issuance of revenue bonds payable from
tae income of the system. Such "user" caarges for services
in unincorporated areas of Chatham County shall be sufficient
to bear the costs described herein, but in no event shall
su* ii charg s be more than 1 -1/2 times the charge made to users
of tae system within the City limits of-the City of :Savanna?
Beach. A copy of t:~aa "water and sewer' Ordinances enacted by
Mayor and Councilmen of the City of Savannah each, on March
10, 1971, and as amended on September 22, 1971, designated
Exhibit "3' and 'C" respectively is hereto attached and made
a part of this Agreement.
10. The City agrees to keep accurate records of all
charges and collections for user sewage and water services, as
well as charges and collections for the connections or other
services related thereto and the City agrees to keep accurate
records of disburs€ ments' of expenses for the construction of
sanitary swage treatment plants, .improvements to existing
plants, construction of trunk lines, lift stations and all
Other appurtenances tnereto as well as all costs of operation,
mainteaiauce and other expenses of these facilities. The
County shall have the right to inspect and audit these
records at regular intervals not less than every six (6)
months, should the County elect to do so.
parties
11. It is mutually agreed and understood by both
hereto that a single county -wide water and sewer
system would provide the best vehicle for meeting the enviror.-
mental needs
therein, and
of tha County as a whole including all municipalities
to this e nti both parties agree that they will
work together and cooperate in good faith to bring about the
establishment of such a system.
Itd WITUESS WaER OF, the parties hereto have caused
these presents to be executed in duplicate originals as of the
date A.zreii" b fore set forth by tneir duly authorized officers,
4nd i:-he seals affixed hereto.
On the
day o
On. the /4/ day of
1972
1972
CHATHAM COUNTY
Chairman, Co iss sonars c's Chas:;
County and E - Officio Judges thQ
Cle
RE i-:AYQR AND COUN'CILMEN OF THE
CITY OF SAVANNAH BEAM, TYBEE
ISLAND, GEORGIA.
ATTEST:
Clerk of Council
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RES.0LUT`ION:
BE. IT RESOLVED. BY THE MAYOR AND COUNCIL. OF THE.. CITY. OF
SAVANNAH BEACH.,. TYBEE ISLAND., GEORGIA, IN .COUNC.IL DULY
ASSEMBLED, AND. IT IS HEREBY RESOLVED AS. FOLLOWS.:
WHEREAS, the City of Savannah Beach, Tybee Island,
Georgia is currently under Court order by the Superior Court
of Chatham County., Georgia to convey its sewage waste to an
appropriate disposal facility and to .otherwise meet the
requirements of the State Water Quality Control Board of
the State of Georgia; and
WHEREAS, said State Water Quality. Control Board is
requiring the City. of Savannah Beach, Tybee Island, Georgia
to have a secondary waste facility treatment plant. completed by
December 31, 1972; and
WHEREAS, . the City is in the process of issuing revenue
bonds for purposes of financing the construction of such sewage
collection and treatment facilities in conformity with. an
Engineer's study and report .prepared by. Thomas and Hutton,
Engineers, dated. March .30,1972;. and
WHEREAS,. the City desires to contract with Chatham
County., a. political :subdivision of the State of .Georgia, to
provide funds in order. to. hel.p finance the construction of
such sewage collection and treatment facility in its overall
pollution abatement program; and
WHEREAS,: the said Chatham .County. acting .through its
Chairman and. Commissioners and Ex- Officio Judges thereof, has
indicated that. it will levy a tax under its taxing powers so
that it will be capable of providing funds to be paid to various
municipalities within .said .county., and, more specifically, to.
the City, of Savannah Beach, Tybee Island, Georgia; and
WHEREAS, the City. is :desirous of accepting funds to be
provided by Chatham County and desires to enter into an agreement
with Chatham County wherein. the. terms, provisions and conditions
of such .agreement :shall control and be made binding upon both
the City and Chatham. County, and wherein .the sp:ecliflc payments.,
amounts,: dates and terms shall be Iset forth with: particularity.
NOW,. .THEREFORE, BE .IT RESOLVED. AND IT .IS. HEREBY. RESOLVED.
UNDER THE. AUTHORITY. OF THE FOREGOING AS FOLLOWS::
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1. The Mayor and Councilmen of.. the ..City . of Savannah
Beach, .Tybee _Island, ;Georgia, acting by and on behalf of the
citizens and residents. of said municipality, do hereby .:autho-
rize the .City .to.. enter ..into . a contract with :Chatham County,
the Chairman and Commissioners of Chatham County. and Ex-
Officio Judges, thereof, which will provide for the payment by the
County from :funds :derived from its taxing powers the sum of
$60,.00.0..00 annually, the first of such .$60,000...00 .payments to .
be due and payable to the City. on. November 1, 1972, and for
such ..payments to continue annually thereafter through the
year 2003. ...
2. That for and in .consideration of the payment of
such .sum of money: by. Chatham County to the .City, the City
shall use such money to provide facilities for the treatment
of sanitary sewage waste so as to abate pollution in the creeks.,
streams, rivers and bodies: of water lying within the confines
of and adjacent to the boundaries : of the City in .accordance
with the standards and specifications of the State Water
Quality. Control Board of the State of .Georgia, and the City .
shall pledge the amounts to be paid by. the County under such
contract to pay principal and interest of any water and sewer
revenue bonds issued by the City. for the financing and
construction of such facilities.
3. Further, the. Mayor and Councilmen of the City. of
Savannah Beach, Tybee Island, Georgia do hereby .authorize the
City. Attorney_ to prepare such :contract in conjunction and in
cooperation with. the County Attorney; the terms, provisions
and contents: 'of such contract to be agreed upon by the City.
and Chatham County and the effective date of such .contract be .
made retroactively effective as of January 1, 1972.
ADOPTED. IN OPEN. .COUNCIL .MEETING DULY .CALLED. AND
AUTHORIZED THIS. 14th day of May, 1972.
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CITY. OF SAVANNAH BEACH,. TYBEE. .ISLAND., GA.
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By
Ma ; r
City. Clerk
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