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HomeMy Public PortalAbout19720514SCMeeting1 1 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 58 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 1 1 1 • 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. 1 1 1 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 1 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. 1 1 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 • 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:: 1 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. 1 1 CITY. OF SAVANNAH BEACH,. TYBEE. .ISLAND., GA. ft By Ma ; r City. Clerk 1