HomeMy Public PortalAbout19720719CCMeeting1
1
1
71
Savannah Beach, Georgia
July 19, 1972
The Regular July Meeting of Savannah Beach City Council was held
this afternoon at 3 :00 P.M., with Mayor Michael J. Counihan
presiding and the following Councilmen present: James Stettler,
Edward Jung, Robert Cary, George Schwarz and Perry Zittrauer, Jr.
City Attorney Bart Shea was also present.
Mr. Ernest Hosti was a visitor at the Meeting.
Mayor Counihan announced to Council that our Pollution Abatement
Program was moving along nicely. He said that everything concerning
the Bond Issue had been approved and that the bonds were now being
printed.
Mayor Counihan stated that he would like Council to amend our
present Ordinance concerning the sale of alcoholic beverages in
such a way that we would use the same language in our Ordinance
that is used in the State Law. He noted that the State Law does
not say that food and beverage places have to close at 12 :00
Midnight, it simply says that the sale of alcoholic beverages
must stop at 12 :00 Midnight. City Attorney Shea read the section
from the Georgia Code that would be embodied into our Ordinance.
Councilman Cary moved that this be accepted as an amendment to
our Ordinance And that it be adopted on first reading. The motion
was seconded by Councilman Jung and unanimously carried.
City Attorney Shea informed Council that it would be necessary for
them to adopt a Resolution calling for a Special Election to elect
a Mayor and Council on August 31, 1972 to conform with the Order
of Superior Court Judge Paul E. Caswell issued in court on July 18,
1972. The motion to adopt the Resolution was made by Councilman
Cary; seconded by Councilman Zittrauer and unanimously carried.
JUDGE CASWELL'S ORDER
Councilman Cary moved that the Mayor and the City Clerk be authorized
to sign the bond validation for the new Water and Sewer Revenue
Indenture Certificates being issued for the new Sewage Treatment
Plant and Collection System. The motion was seconded by Councilman
Zittrauer and unanimously carried.
A Resolution providing for the issuance of $1,455,000 in principal
amount of City of Savannah Beach Water and Sewer Revenue Bonds
was read the City Attorney. He stated that this was the second
reading of the Resolution authorizing the issuance of the Bonds
themselves.
RESOLUTION
72
Councilman Cary moved the adoption of the Resolution. Councilman
Zittrauer seconded the motion and it was unanimously carried.
Mayor Counihan then recognized Mr. Earl Anderson, a visitor to
the meeting. Mr. Anderson stated that he had two questions he
would like to ask the Mayor and Council, In the first question
he asked Mayor Counihan if he was aware of the hordes of gestapo
in their specially constructed paddy wagon who descended on our
city last Friday evening and hauled off all the bad guys and made
us pure again. Mayor Counihan stated that he knew nothing of this
raid but that he did have a clipping from the newspaper which might
explain it. He then read from the clipping that Mr. Hendrix had
wired Governor Carter and Lieutenant Governor Maddox to send an
investigation team here. Mr. Anderson asked if the Mayor and
Council had requested County help in this raid. Mayor Counihan
stated that he had no knowledge of any of this and that he felt
we had a very capable police force down here that could take care
of almost any emergency and he certainly had not asked for any
outside help.
Mayor Counihan, noting the presence of Mr. S. R. Kent who is the
Superintendent of the Sewer and Water Departments, asked for a
progress report on the new Sewage Treatment Plant. Mr. Kent
stated that all of the fill was completed and work had now begun
on the foundations. He stated further that the completion date
was set for May 1, 1973.
Councilman Cary stated that since the mail had been held up by
the post office and we did not have our bills ready for this
meeting, he would recommend that Mr. Jung, Finance Chairman, be
authorized to review them and approve and sign all the bills for
this month. Councilman Cary put this recommendation in the form
of a motion. It was seconded by Councilman Jung and unanimously
carried.
There being no further business, the Meeting was adjourned to
the next regular or special called meeting.
CLERK OF COUNCIL
dL_.
YOR
1
1
1
1
1
1
With the presentation of the aforegoing facts in regard to
Officers Palmer and Helverson, who have been suspended indefinitely
I recommend to Council that they -- Palmer and Helverson - -be
officially dismissed.
Respectfully,
Signed by Robert F. Cary
Robert F. Cary
Police Commissioner
1
1
STATE OF GEORGIA )
) IN THE SUPERIOR COURT OF CHATHAM COUNTY, GEORGIA
COUNTY OF CHATHAM )
MICHAEL J. COUNIHAN, )
)
-V- )
)
WILLIAM ALLEN HENDRIX,. SHELBY )
MYRICK, JR., Ordinary, Chatham )
County, Georgia and Election )
Superintendent; MICHAEL J. COUNIHAN, )
Mayor; EDWARD JUNG, ROBERT. F. CARY, )
EDWARD W. TOWNS, GEORGE F. SCHWARZ, )
JAMES M. STETTLER and PERRY A. )
ZITTRAUER, JR., Councilmen of the )
City of Savannah Beach, Tybee )
Island, Georgia, )
CIVIL ACTION NO. 8256
A N D
KAREN LOSEY, )
)
-V- )
)
MICHAEL J. COUNIHAN, Mayor, )
Savannah Beach, Georgia, ROBERT F. ) CIVIL ACTION NO. 8260
CARY, PERRY A. ZITTRAUER, JR., )
EDWARD JUNG, GEORGE .F. SCHWARZ, )
JAMES M. STETTLER and EDWARD W. )
TOWNS, As Councilmen, Savannah )
Beach, Georgia )
O R D E R
THE FOREGOING MATTERS having come for hearing and by consent
of counsel for all parties the same were consolidated and after
hearing evidence,
IT IS CONSIDERED, ORDERED AND ADJUDGED that Plaintiff's
Petition for Declaratory Judgment is denied and both parties'
motion to dismiss each others appeal is denied.
After hearing evidence on the appeal, it appears that primarily
due to the violation of the secrecy of the ballots the election is
so defective as to the officers in said election as to place in
doubt the entire election for the election not only of Mayor but
also other candidates for councilmen, then said election is hereby
declared to be void and invalid and a second election to fill the
office of Mayor and six Councilmen of the municipality of the City
1
1
1
of Savannah Beach, Tybee Island, Georgia is hereby declared. for
August 31, 1972.
That said election shall be held in accordance with the
Municipal Election Code, however the following deadlines shall be
met by the election officials. All persons must be registered
prior to noon on August 1, 1972 and on that date the registration
list shall be closed. Last day for purging any persons and challeng-
ing their registration from the election list shall be August 11,
1972 and said persons shall receive notice of said purging and
challenge as provided by the Code. Within three (3) days after
receipt of said notice any person so purged or challenged may
appeal to the registrars and a decision shall be rendered within
three (3) days but in no case later than August 16, 1972.
All appeals to theSuperior Court from the decision of the
Registrars must be filed not later than noon on August 20, 19 72.
In the event of a tied vote in any election between two (2)
or more candidates for any office, whether Mayor or Councilmen,
a new election between only the candidates thus tied in number of
votes for that particular office shall be ordered and held on the
14th day after the holding of the first election, that is to say,
September 14, 1972•
Inauguration of the Mayor and six (6) Councilmen shall be
held on September 20, 1972.
Candidates for the office of Mayor and Councilmen shall be
limited to those candidates who were duly qualified to run for
the office of either Mayor and /or Councilmen as of the April 3,
1972 election of the municipality.
The present Mayor, namely, Michael J. Counihan, and the
present incumbents, namely, Robert F. Cary, Edward Jung, George
F. Schwarz, James M. Stettler, Edward W. Towns and Perry A.
Zittrauer, shall continue in office as the duly authorized Mayor
and Councilmen of the Municipality until such time as their
successors are duly elected and qualified.
IT FURTHER APPEARING that a separate suit has been filed by
the Liberty National Bank and Trust Company of Savannah, Georgia
against the present Mayor and Councilmen questioning the validity .
and authority of the present Mayor and Councilmen to sign checks
and negotiate official papers for and on behalf of the Municipality,
the same being case number 8380, currently pending in the office
of the Clerk of the Superior Court of Chatham County, Georgia;
IT IS FURTHER CONSIDERED, ORDERED AND ADJUDGED that the
present Mayor and Councilmen shall continue to have the authority
to sign and negotiate checks and any other official papers or
documents on behalf of the Municipality until such time as their
1
1
successors are duly elected and qualified,
UPON AGREEMENT of counsel for all parties concerned in both
election appeals, and upon the resignation of the present Superin-
tendent, namely, Honorable Shelby Myrick, Jr., Ben S. Axson, Clerk
of the Superior Court of Chatham County, Georgia, is hereby appointed
to serve as the Superintendent of the Municipality election to be
held on August 31, 1972 and is hereby clothed with all of the powers,
and duties as set forth in the Georgia Municipal Election Code.
The Municipal Election Superintendent shall appoint poll
officers, including chief Manager, Assistant Managers, and Clerks,
giving each equal representation as possible to all candidates,
Said Superintendent is further authorized to duplicate and
make copies of any and all election material currently impounded
as the result of said election appeals and make available such
copies to the Board of Registrars and any other officials connected
with or having anything to do with said election including candidates
and the attorneys of interested parties.
IN OPEN COURT this 18th day of July, 1972.
Signed by Paul E. Caswell
Paul E. Caswell, Judge, Atlantic Judicial
Circuit, presiding
1
1
1
R E S O L U T I 0 N
WHEREAS, under order of the Superior Court, Judge
Paul E. Caswell, Atlantic Judicial Circuit, presiding, dated
July 18, 1972, the Municipal election of April 3, 1972 for
the office of Mayor and six Councilmen of the Municipality
was declared void and invalid, and a special second election
to fill the office of Mayor and six Councilmen of said
Municipality was declared for August 31, 1972; and
WHEREAS, the governing authority of the Municipality
shall by this resolution call such special second election
for purposes of electing a Mayor and six Councilmen of the
Municipality; and
WHEREAS, said election shall be held in accordance
with the provisions of the Georgia Municipal Election Code and
the election ordinances of the Municipality, except where
modified by the provisions of said Court Order of July 18, 1972.
NOW, THEREFORE, BE IT RESOLVED, and it is hereby
resolved by the authority of the foregoing:
1. A special second election-is-hereby called for
the purposes of electing a Mayor-and six Councilmen of the
City of Savannah Beach, Tybee Island, Georgia on August 31,
1972 from 7:00 o'clock A.M. to 7:00 o'clock P.M., such date
being no earlier than thirty (30) days nor later than sixty
(60) days after the call of such election by the governing
body of the Municipality in accordance with the provisions
of Georgia Municipal Election Code, §34A -704.
2. Said election shall be conducted in accordance
with the provisions of the Georgia Municipal Election Code
and the election ordinances of the Municipality except where
modified by the provisions of said Court Order of July 18, 1972.
3. Candidates for the office of Mayor and Councilmen
shall be limited to those candidates who were duly qualified to
run for the office of either Mayor or Councilmen as of the
April 3, 1972 election of the Municipality. Candidates shall
be required to qualify between August 1, 1972 and 5:00 o'clock
P.M. on August 21, 1972. No qualifying fee shall be required
of any candidate.
4. Notice of such special second election shall be
published promptly in a newspaper of general circulation in
the Municipality, to wit: The Savannah Evening Press.
5. A copy of the Court Order of July 18, 1972
is attached hereto and made a part of this Resolution.
6. The election Superintendent of said special
second election shall be Mr. Ben P. Axson, Clerk of the
Superior Court, Chatham County, Georgia who shall be clothed
with all the powers and duties as set forth in the Georgia
Municipal Election Code and the Election Ordinances of the
Municipality.
ADOPTED IN OPEN COUNCIL MEETING THIS 19th day of
JULY, 1972.
ATTEST:
1
CITY OF SAVANNAH BEACH, TYBEE ISLAND, GEORGIA
B
Ma or
Clerk of Council
1
1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAVANNAH
BEACH, TYBEE ISLAND, TO PROVIDE FOR THE ISSUANCE OF $1,455,000,
IN PRINCIPAL AMOUNT OF CITY OF SAVANNAH BEACH WATER AND SEWER
REVENUE BONDS, SERIES 1972, PURSUANT TO AND IN CONFORMITY WITH
THE CONSTITUTION AND STATUTES OF THE STATE OF GEORGIA, AND AN
ORDINANCE OF SAID POLITICAL SUBDIVISION ADOPTED NOVEMBER 9, 1950,
PAYABLE PRIMARILY FROM THE EARNINGS OF THE WATER AND SEWER SYSTEM
OF SAID POLITICAL SUBDIVISION AS IT NOW EXISTS AND AS IT MAY
HEREAFTER BE ADDED TO, EXTENDED, AND IMPROVED, TO FINANCE, IN
WHOLE OR IN PART, THE COST OF CONSTRUCTING EXTENSIONS, ADDITIONS,
AND IMPROVEMENTS TO, AND EQUIPMENT FOR THE WATER AND SEWER SYSTEM
OF SAID POLITICAL SUBDIVISION AND FOR ACQUIRING THE NECESSARY
PROPERTY THEREFOR FOR ITS OWN USE AND FOR THE USE OF PUBLIC AND
PRIVATE CONSUMERS WITHIN AND WITHOUT THE TERRITORIAL LIMITS OF
SAID POLITICAL SUBDIVISION, TO PROVIDE FUNDS TO REDEEM AND
ACQUIRE PURSUANT TO AND IN CONFORMITY WITH THE PROVISIONS OF
SAID ORDINANCE OF NOVEMBER 9, 1950, ALL THE OUTSTANDING AND
CALLABLE SAVANNAH BEACH, TYBEE ISLAND, WATER REVENUE ANTICIPATION
CERTIFICATES, DATED DECEMBER 1, 1950, TO PROVIDE FOR THE ISSUANCE,
UNDER CERTAIN CIRCUMSTANCES, OF ADDITIONAL BONDS ON A PARITY,
AS TO THE PLEDGE OF AND CHARGE ON THE EARNINGS OF SAID SYSTEM,
WITH THE BONDS HEREBY AUTHORIZED, TO PROVIDE FOR PRESCRIBING
RATES AND COLLECTING FEES, TOLLS, AND CHARGES FOR THE SERVICES
OF SAID SYSTEM, TO PROVIDE FOR THE CREATION OF CERTAIN FUNDS
TO PAY THE PRINCIPAL OF AND INTEREST ON SAID BONDS, FOR THE
REMEDIES OF THE OWNERS OF SAID BONDS, AND FOR OTHER PURPOSES.
PREAMBLE
1. Under and by virtue of the authority of the Revenue
Bond Law of Georgia, codified in Ga. Code Ann., Ch. 87 -8, the
Constitution of the State of Georgia, the general laws of the
State of Georgia, and the laws of the State of Georgia relating
to the City of Savannah Beach, Tybee Island, a political subdivision
of the State of Georgia and a municipality as defined in said
Revenue Bond Law, hereinafter sometimes designated as the city,
the municipality, or the political subdivision, said political
subdivision is authorized to acquire, construct and equip additional
water and sewer facilities and to add to, extend, improve, and
equip its existing water and sewer system and operate and maintain
said system as added to, extended, improved, and equipped for
its own use and for the use of public and private consumers
both within and without the boundaries of said political subdivision,
to prescribe and revise rates and collect fees, tolls, and charges
for the services and facilities furnished by said system as
added to, extended, improved, and equipped, and, in anticipa-
tion of the collection of revenues from such water and sewer
system, to issue revenue bonds to finance, in whole or in part,
the cost of such acquisition, construction, additions, extensions,
improvements, and equipment and to pay the expenses incident
thereto.
2. (a) Said political subdivision pursuant to an
ordinance adopted November 9,_1950,. has heretofore issued
$165,000 in principal amount of Savannah Beach, Tybee Island,
Water Revenue Anticipation Certificates, dated December 1,
1950, hereinafter sometimes designated as the Series 1950
bonds, and has authorized the issuance of an additional
$135,000 in principal amount of such obligations under the
conditions stated in said ordinance. Said ordinance provided
that the principal amount of the $165,000 of Series 1950 bonds
which have actually been issued and delivered would bear interest
at the rate of 3 1/4% per annum and would mature and be paid
on December 1, in the years and amounts as follows:
$3,000 in each of the years 1951 to 1953, inclusive;
$4,000 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, and
$6,000 in the year of 1980.
of which $52,000 in principal amount are now outstanding maturing
serially in varying amounts in each of the years 1972 through 1980.
(b) The right to issue the aforesaid additional
$135,000 in principal amount of such obligations is hereby
revoked and rescinded for such period of time as any bonds issued
hereunder shall be outstanding or any interest due thereon shall
be unpaid, and from and after the date hereof no additional
obligations shall be issued pursuant to said ordinance of
November 9, 1950, during such period.
(c) Under and by virtue of authority of Article II, 1
of said ordinance of November 9, 1950, said political subdivision
is authorized at its option to redeem the Series 1950 bonds
maturing after the year 1957, and issued under said ordinance, in
whole on December 1 in any year beginning with December 1, 1956
from any money which may be made available for such purpose and
deposited with the paying agent on or before the date fixed for
.redemption.
(d) Out of said $52,000 of outstanding Series 1950
bonds, $7,000 mature on December 1, 1972, and $45,000, maturing
serially thorugh 1980 are callable on December 1, 1972, at the
call price of 102.
3. It has been determined that by the expenditure of
$52,000, together with . certain other funds available to said
political subdivision, it can call and acquire by redemption or
otherwise, as provided in said ordinance of November 9, 1950,
pursuant to which the issuance of said Series 1950 bonds was
authorized, all of said outstanding and callable Series 1950
bonds and can pay at maturity all Series 1950 bonds maturing
December 1, 1972, which action will result in the removal of
the lien held by said Series 1950 bonds on the revenues of the
water and sewer system of said political subdivision and it has
1
been determined that for the befit interests of said political
subdivision all of said outstanding and callable Series 1950
bonds should be called and acquired by redemption or otherwise
as provided in said ordinance.
4. It was provided in Article II, of said ordinance
of November 9, 1950, that: "...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 Clerk 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 ;...
"Notice having been given in the manner and under the
conditions hereinabove provided, the certificates so designated
for redemption shall, on the redemption date designated 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 redemp-
tion...shall be deemed paid and shall not be considered to
be outstanding under the provisions of this ordinance."
5. It has been determined that such redemption and
acquisition can best be financed and made by the issuance and
sale of $52,000 in principal amount of City of Savannah Beach
Water and Sewer Revenue Bonds, Series 1972.
6. There is now on deposit in the various funds and
accounts securing the payment of said Series 1950 bonds and the
interest thereon sufficient money attributable in the aggregate
to said Series 1950 bonds to pay the amount of the call price
of bonds to be called in excess of the principal amount maturing
and callable on December 1, 1972, together with the fees of
the paying agent, and the use of such funds for the above desig-
nated purposes will beneficially affect the security of the
owners of said Series 1950 bonds.
7. It appears that it is now desirable and said
political subdivision has determined to exercise its option
to call and redeem in whole all the outstanding and callable Series
1950 bonds on December 1, 1972, in accordance with the terms and
conditions set forth in Article II, of said ordinance of November
9, 1950, and it is deemed advisable to make funds available
for such purpose in an amount of not less than Fifty Two
Thousand Dollars by the issuance of revenue refunding bonds.
8. It appears that it is now necessary and desirable
to acquire, construct, and equip certain additions and improvements
to and extensions of the existing sewer system of said political
subdivision, which sewer system is, by the adoption of this
resolution, combined with the existing water system of said poli-
tical subdivision at a cost of approximately $2,100,000 all
substantially in accordance with the engineering recommendations
and plans which have been filed in the office of the clerk of said
political subdivision, which describe and define the extensions,
additions, and improvements to be made, which show the estimated
cost thereof, and which plans, recommendations, and specifications
were considered and approved by the governing body of said
political subdivision both prior to and simultaneously with the
adoption of this resolution and which are, by this reference,
incorporated herein and made a part hereof as fully as if physically
attached hereto.
9. It is deemed advisable to issue revenue refunding
and improvement bonds in the amount of $1,455,000 in order
to provide funds which, together with other funds available
to said political subdivision for such purpose, shall be
sufficient to finance the acquisition and construction of and
equipment for such extensions, additions, and improvements
and the call, payment, and redemption of all outstanding
Series 1950 bonds. Said bonds shall be secured by a pledge
of and charge or lien on the revenues to be derived from the
operation of said water and sewer system superior to all other
charges or liens thereon except the charge or lien thereon
hereinafter created to pay the reasonable and necessary
expenses of operating, maintaining, and repairing said system.
NOW, THEREFORE., be it resolved by the City Council
of the City of Savannah Beach, Tybee Island, in council assembled,
and it is hereby resolved by authority thereof, as follows:
ARTICLE I
AUTHORIZATION, TERMS, AND
FORM OF BONDS
Section 101. The existing water system and the existing
sewer system of said political subdivision are hereby combined
into one consolidated water and sewer system, and there are
hereby authorized to be issued, pursuant to the Revenue Bond Law
of Georgia, condified in Ga. Code Ann., Ch. 87 -8, the Constitution
of the State of Georgia, the general laws of the State of Georgia,
the laws of the State of Georgia relating to the City of Savannah
Beach, Tybee Island and this resolution, water and sewer revenue
refunding and improvement bonds payable as herein provided in
the aggregate principal amount of $1,455,000 to be designated
1
City of Savannah Beach Water andSewer Revenue Bonds, Series 1972,
and all the covenants, agreements, and provisions of this reso-
lution shall be for the equal and proportionate benefit and
security of all owners of the bonds issued hereunder and the
interest coupons thereto appertaining without preference, priority,
or distinction as to the lien or otherwise of any one bond over
any other bond.
Section 102. The bonds authorized hereby shall be dated
May 1, 1972, shall be issued in the denomination of $5,000,
shall be numbered consecutively upward in order of maturity,
and the principal of said bonds shall mature and be paid on June
1, in the years and amounts and shall bear interest at the rate
or rates shown as follows:
PRINCIPAL DUE IN RATE OF
AMOUNT THE YEAR INTEREST
$15,000 1974 6.25%
15,000 1975 6.25%
15,000 1976 6.25%
15,000 1977 6.25%
20,000 1978 6.25%
20,000 1979 6.25%
20,000 1980 6.25%
25,000 1981 6.25%
25,000 1982 6.25%
25,000 1983 6.25%
30,000 1984 6.25%
30,000 1985 6.50%
35,000 1986 6.50%
35,000 1987 6.50%
40,000 1988 6.50%
PRINCIPAL DUE IN RATE OF
AMOUNT THE YEAR INTEREST
$ 40,000 1989 6.50%
45,000 1990 6.50%
50,000 1991 6.50%
50,000 1992 6.50%
55,000 1993 6.50%
60,000 1994 6.50%
65,000 1995 6.50%
70,000 1996 6.50%
75,000 1997 6.50%
80,000 1998 6.
85,000 1999 6.50%
90,000 2000 6.50%
100,000 2001 6.50%
105,000 2002 6.50%
120,000 2003 6.50%
Section 103. Interest from May 1, 1972, shall be
payable on each of said bonds on December 1, 1972, and semiannually
thereafter on June 1 and December 1 in each year, in the manner
stated in the bond form, until theobligation of said political
subdivision with respect to the payment of the principal of
such bonds shall be discharged.
Section 104. (1) Pursuant to the provisions of Ga.
Code Ann., §87 -119, the bonds shall be executed with the engraved,
imprinted, stamped, or otherwise reproduced facsimile of the signa-
ture of the Mayor of said political subdivision and the corporate
seal shall be impressed or imprinted thereon and attested by
the manually executed signature of the Clerk of said political
subdivision. The bonds shall be issued in coupon form, and
the coupons to be attached to the bonds shall be executed with
the facsimile signature of such clerk, who, by the execution
of each bond manually, shall adopt as his own the facsimile
signature appearing on each coupon attached to such bond.
(2) In case any officer whose signature
shall appear on the bonds or coupons shall cease to be such officer
before delivery of such,bonds,such signature shall,
nevertheless, be valid and sufficient for all purposes the same
as if he had remained in office until delivery, and such bonds
may, nevertheless, be issued and delivered as though the person
who signed or sealed such bonds had not ceased to be such
officer, and any of such bonds may be executed and sealed on
behalf of said political subdivision by such officers who may,
at the time of the execution of such bonds, hold the proper
offices of said political subdivision although on the date of
such bonds or on the date of any lawful proceedings taken
in connection therewith such persons may not have held such
offices.
Section 105. In the event any bond is mutilated, lost,
stolen, or destroyed, said political subdivision shall execute
and deliver a new bond of like tenor as that mutilated, lost,
stolen, or destroyed, which new bond shall have attached thereto
coupons corresponding in all respects to those, if any, on the
bond mutilated, lost, stolen, or destroyed, provided that (a)
in the case of any such mutilated bond, such bond together with
all unmatured coupons appertaining thereto is first surrendered
to said political subdivision, and (b) in the case of any such
lost, stolen, or destroyed bond, there is first furnished evi-
dence of such loss, theft, or destruction satisfactory to said
political subdivision together with indemnity satisfactory to
said political subdivision. In the event any coupon is mutilated,
lost, stolen, or destroyed, said political subdivision may issue
a duplicate coupon upon the same terms and conditions as those
provided for the replacement of mutilated, lost, stolen, or
destroyed bonds. No service charge shall be made for any such
transaction, but a charge may be made to cover any actual
expense involved.
Section 106. Said political subdivision and its agents,
including the paying agent and registrar, may deem and treat
the registered owner of any bond registered as to principal
as the absolute owner of such -bond for the purpose of receiving
payment of the principal thereof and for all other purposes
whatever. Said political subdivision and its agents, including
the paying agent and registrar, may deem and treat the bearer
of any bond which shall not at the time be registered as to
principal as the absolute owner of such bond, whether or not
the same shall be overdue, for the purpose of receiving payment
thereof or of registering the same and for all other purposes,
and said political subdivision and its agents, including the
paying agent and registrar, shall not be affected by any notice
to the contrary. Every taker and owner of any coupon for interest
on any bond whether or not such bond shall be registered as
to principal, by the acceptance thereof, agrees with said
political subdivision and its agents, including the paying
agent and the registrar, and with every subsequent taker and
owner thereof that such coupons shall pass in the manner and
with the effect of delivery under like circumstances of a
negotiable instrument payable to bearer, and said political
1
subdivision and its agents maydeem and treat the bearer
thereof as the absolute owner of such coupon, whether or not
the same shall be overdue, for the purpose of receiving payment
thereof, and for all other purposes whatever, and neither said
political subdivision or any such agent shall be affected by
any notice to the contrary.
Section 107. A duly executed validation certificate
of the Clerk of the Superior Court of Chatham County, State
of Georgia, shall be endorsed on the back of each bond and
shall be essential to its validity.
Section 108. The principal paying agent will be the
registrar for the bonds and will keep, at its principal office,
proper registry and transfer records in which it shall register
the name of the owner of said bonds as the same are presented
for registration. Upon presentation of any bond for registration
or transfer, the fact of such registration or transfer shall
be noted on the bond. No transfer of any registered bond shall
be valid unless made at such office of the registrar and noted
on the bond.
Section 109. The principal of and the interest on all
the bonds of this issue, except those registered in accordance
with the provisions for resistration set forth on the back of
the bonds and payable in accordance with such provisions, shall
be payable at the principal office of one or more paying agents
as the same shall be designated in the executed bonds, in lawful
money of the United States of America, and the said bonds and
the interest coupons to be attached thereto and the certificate
of validation and certificate of registration shall be in sub-
stantially the following terms and form, with such variations,
omissions, and insertions, including the designation of the
registrar and pyaing agent as may be required to complete
properly each respective bond and as may be approved by the
officer of officers executing each bond manually, which approval
shall be conclusively evidenced by such execution:
UNITED STATES OF AMERICA
STATE OF GEORGIA
CITY OF SAVANNAH BEACH,
TYBEE ISLAND
WATER AND SEWER REVENUE BOND
SERIES 1972
No. * $5,000
The City of Savannah Beach, Tybee Island, a municipal
corporation and a political subdivision of the State of Georgia,
in Chatham County, for value received hereby promises to pay,
solely from the funds provided therefor as hereinafter set forth,
to bearer upon surrender of this bond for cancellation at the
principal office of Savannah Bank & Trust Company of Savannah,
as paying agent, in the City of Savannah, Georgia, or, if
this bond is registered as herein provided, to the registered
owner hereof in the manner provided in the provisions for
registration set forth on the back hereof, the principal
sum of
FIVE THOUSAND DOLLARS
On June 1, 1974.,*
and to pay, solely from said funds, interest hereon from the
date hereof at the rate of six and twenty five hundredths per cent*
per annum payable December 1, 1972, and semiannually thereafter
on June 1 and December 1, in each year until the obligation of said
political subdivision with respect to the payment of such principal
sum shall be discharged but only, in the case of interest payable
on or before the stated maturity of this bond, upon presentation
and surrender of the annexed interest coupons, as they severally
become due, at the principal office of said paying agent or,
if this bond is registered as to interest as herein provided,
to the registered owner in the manner provided in said provisions
for registration. Both the principal hereof and the interest
hereon shall be payable in lawful money of the United States
of America in the manner herein provided.
This bond is one of a duly authorized series of bonds
designated City of Savannah Beach Water and Sewer Revenue Bonds,
Series 1972, of like tenor, except as to numbers, interest rates,
redemption provisions, and dates of maturity, issued in the
aggregate principal amount of $1,455,000 to provide funds needed
to pay the cost, in whole or in part, of calling, paying, and
redeeming all outstanding Savannah Beach, Tybee Island, Water
Revenue Certificates, dated December 1, 1950, and of acquiring
constructing, and equipping improvements and additions to and
extensions of the existing water and sewer system of said
political subdivision and is issued pursuant to authority
of and in accordance with the provisions of the Constitution
of the State of Georgia, the Revenue Bond Law of Georgia,
codified in Ga. Code Ann., Ch. 87 -8, the general laws of
the State of Georgia, and the laws of the State of Georgia
relating to theCity of Savannah Beach, Tybee Island, and
was duly authorized by a resolution, sometimes hereinafter de-
signated as the Bond Resolution, adopted by the governing
body of said political subdivision on July 19, 1972.
In addition to the aggregate principal amount of said
bonds, said political subdivision may, under certain conditions
as provided in said Bond Resolution, issue additional water
and sewer revenue bonds which, if issued in accordance with
such provisions, will rank on a parity with the bonds of this
series with respect to the pledge of and the charge or lien
on the revenues of said system.
Reference to said Bond Resolution is hereby made for a
complete description of the funds charged with and pledged to
the payment of the principal of and the interest on the bonds
of this series, a complete description of the nature and extent
of the security provided for the payment of said bonds, a state-
ment of the rights, duties, and obligations of said political
subdivision, the rights of the owners of the bonds, and the terms
and conditions under which additional bonds may be issued, to
all the provisions of which the owner hereof, by the acceptance
of this bond, assents.
Said Bond Resolution provides among other provisions
for prescribing and revising rates and collecting fees, tolls, and
charges for the services, facilities, and commodities furnished
by said water and sewer system as the same now exists and as it
may be hereafter added to, extended, and improved sufficient
in amount to provide funds to pay the costs of maintaining,
repairing, and operating said system and to pay into a special
fund, designated Savannah Beach Water and Sewer Revenue Bond
Sinking Fund, an amount sufficient to pay the principal of and
the interest on all bonds issued pursuant to the provisions
of said Bond Resolution which are now or which may be hereafter
outstanding and any additional pari passu bonds hereafter issued
pursuant to the provisions of said Bond Resolution as such principal
and interest shall become due and be payable and to create and
maintain a reserve for such purpose, and said Sinking Fund,
by the provisions of said Bond Resolution, is pledged to and
charged with the payment of the principal amount of said bonds
and the interest thereon.
The pledge of and the charge or lien on the revenues
of said political subdivision to be derived from the operation
of said water and sewer system to secure the payment of the bonds
of this series and the interest thereon is a first and prior
charge or lien on such revenues subject only to the charge or
lien thereon for the payment of the reasonable and necessary
expenses of operating, maintaining, and repairing said system.
Said political subdivision and Chatham County have
entered into a contract dated as of January 1, 1972, providing
for the payment by said County to said political subdivision
of the amounts agreed to be paid in said contract in consideration
of the use by said County and the residents thereof of the services
and facilities of said water and sewer system which contract has
been validated by the Superior Court of Chatham County, Georgia,
as additional security for the payment of the principal of and
interest on said bonds. In accordance with the provisions of
said contract such payments shall be made by said County out of
the general funds of said County or out of revenues realized for
such purposes from ad valorem taxes to be levied without limita-
tion as to rate or amount.
This bond does not constitute a debt of said political
subdivision or of Chatham County within the meaning of any consti-
tutional or statutory limitation or provision nor a pledge of
the faith and credit of said political subdivision or said County
nor shall said political subdivision or said County be subject
to any pecuniary liability hereon, and the taxing power of said
political subdivision or said County is not pledged to the payment
hereof, either as to principal or interest. This bond shall
not be payable from nor a charge upon any funds other than the
funds pledged to the payment hereof and is payable primarily
from the funds provided therefor from the earnings of the said
system including all future additions thereto and including the
earnings for the services and facilities supplied to said County
and the residents thereof. No owner of this bond shall ever
have the right to compel the exercise of the taxing power of
said political subdivision or said County to pay the same or
the interest hereon or to enforce payment hereof against any
property of said political subdivision or said County nor shall
this bond or any interest coupon constitute a charge, lien, or
encumbrance, legal or equitable, upon any property of said
political subdivision or said County other than said revenues,
including revenue to be received from said County.
On any interest payment date beginning with June 1,
1982, bonds of this series may be called and redeemed prior to
their respective maturities at the option of said political
subdivision either in whole or in part from money in the said
Sinking Fund available for such purpose or from any money which
may be made available for such purpose, and deposited with the
paying agent on or before the date fixed for redemption. Such
redemption shall be upon at least thirty days prior notice by
publication and otherwise as provided in said Bond Resolution
as follows:
Bonds maturing up to and including June 1, 1982, are
non - callable. Bonds maturing June 1, 1983, and thereafter
are callable in inverse numerical and maturity order on June 1,
1982, and on any interest payment date thereafter up to and
including June 1, 1986, at 106, therafter on any interest
payment date up to and including June 1, 1991, at 104 1/2,
thereafter on any interest payment date up to and including
June 1, 1996, at 103, and thereafter on any interest payment.
date at 101 1/2.
If this bond shall be called for redemption, interest
hereon shall cease to accrue from and after the date fixed for
redemption, and interest which, otherwise, would accrue after
the redemption date shall be void unless default shall be made
in payment of the redemption price upon presentation of the
bond for redemption.
This bond shall be negotiable for all purposes and shall
be payable to bearer and title hereto and to the interest coupons
hereto appertaining shall pass by delivery as in the case of
negotiableknstruments payable to bearer unless this bond is
registered and made payable in the manner provided in the
provisions for registration set forth on the back hereof.
In certain events, on the conditions, in the manner,
and with the effect set forth in said Bond Resolution, the
principal of all the bonds of this series then outstanding,
together with the interest thereon, may become or may be
declared to be due and payable before the stated maturities
thereof.
1
To the extent permitted by said Bond Resolution,
modifications or alterations of the provisions thereof or of
any supplement thereto or of the bonds may be made by said
political subdivision with the consent of the owners of at
least seventy -five percent in principal amount of the bonds
then outstanding without necessity for notation hereon or
reference thereto.
This bond is issued with the intent that the laws of
the State of Georgia shall govern its construction, and, in
case of default, the owner hereof shall be entitled to the remedies
provided by the said Bond Resolution and by all applicable laws.
It is hereby recited and certified that all acts,
conditions, and things required by exist, happen, or be performed
precedent to and in the issuance of this bond do exist, have
happened, and have been performed in due and legal time, form,
and manner as required by law and that provision has been made
for the allocation of the anticipated revenues and receipts
to be derived from the operation of said system in amount
sufficient to pay the principal of and the interest on all of
said bonds as the same shall mature and become due and to create
and maintain a reserve for that purpose and that said funds are
irrevocably allocated and pledged to the payment of all of said
bonds and the interest thereon.
IN WITNESS WHEREOF, the City of Savannah Beach, Tybee
Island, in Chatham County, Georgia, acting by and through its
governing body, has caused this bond to be executed with the
engraved, imprinted, stamped, or otherwise reproduced facsimile
of the signature of its Mayor has caused its corporate seal
to be hereunto impressed or imprinted and attested with the
manually executed signature of its City Clerk, has caused the
interest coupons attached hereto to be executed with the facsimile
signature of said City Clerk, who, by the execution hereof,
adopts as his own the facsimile signature appearing upon each
of said coupons, and has caused this bond to be dated as of
May 1, 1972.
ATTEST:
/s/ E. M. Patterson
CITY CLERK
1
CITY OF SAVANNAH BEACH
TYBE
BY /s
%.i
COUPON
NO. *
On the 1st day of December *, 1972 *, unless the
hereinafter designated bond is registered as to interest,
in which event interest shall be payable in accordance
with the provisions for registration, or is subject to
previous redemption and shall have been duly called for
previous redemption and payment or provision for payment
of the redemption price shall have been made, the City of
Savannah Beach, Tybee Island, in Chatham County, Georgia, promises
to pay to bearer, upon surrender of this coupon at the principal
office of Savannah Bank & Trust Company of Savannah, in the
City of Savannah, Georgia,
the sum of
DOLLARS
in lawful money of the United States
the funds referred to in and for the
its City of Savannah Beach Water and
Series 1972, dated as of May 1, 1972
of America, solely from
interest then due upon
Sewer Revenue Bond,
, Bond No.. *.
CITY OF SAVANNAH BEACH,
BY: /s/ E. M. PattersonL�
CITY CLERK
STATE OF GEORGIA )
COUNTY OF CHATHAly1) VALIDATION CERTIFICATE
I, the undersigned Clerk of the Superior Court of
Chatham County, Georgia, keeper of the records and seal
thereof, hereby certify that this bond was validated and
confirmed by judgment of the Superior Court of Chatham
County, Georgia on , 1972.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the seal of the Superior Court of Chatham County, Georgia.
1
Clerk, Superior Court,
Chatham County, Georgia
CERTIFICATE OF REGISTRATION
This bond may be registered in the name of the owner as
to principal only on books to be kept for that purpose by
Savannah Bank & Trust Company of Savannah, in the City of Savannah,
Georgia, as registrar, in which event, the registrar shall make
proper notation in the registration blank below that the bond
is registered as to principal only, after which the registrar
shall pay all principal as the same shall mature hereon only to
the registered owner hereof upon surrender of this bond for
cancellation-, and no transfer hereof shall then be valid unless
made on the registrar's books by authority of the registered
owner or his attorney duly authorized in writing and similarly
noted in the registration blank below, but it may be discharged
from registration by being transferred to bearer, after which
it shall be payable to bearer and transferable by delivery.
It shall continue subject to successive registration and
transfer to bearer at the option of the owner. The registration
of this bond as to principal shall not affect the negotiability
of the coupons hereto attached which shall continue to be
transferable by delivery. At the request of the owner, this
bond may be registered as to both principal and interest in which
event the registrar shall detach all coupons attached hereto and
shall make proper notation in the registration blank below that
the bond is registered as to interest as well as to principal and
shall pay all interest and principal as the same shall mature hereon
only to the registered owner hereof and only at the principal office
of the registrar. This bond, when registered as to both principal
and interest, may be discharged from registration and reconverted
to a coupon bond at the option of the owner in which event the
registrar will reattach hereto all coupons then unmatured and
previously detached herefrom and shall note in the registration
blank below whether the bond is registered as to principal only
or payable to bearer, and it shall continue subject to successive
registration and transfer to bearer at the option of the owner.
The registrar shall not be required to register this bond during
the period of ten days next preceding any interest payment date
or the stated maturity date hereof.
(No writing shall be entered on this bond
except by the duly authorized officer of
the above designated registrar, the
Savannah Bank & Trust Company of Savannah,
in the City of Savannah, Georgia.)
Date of In Whose Name Manner of
Registration Registered Registration Bond Registrar
*(In all places where asterisks appear in the foregoing bond
form, the working shall be changed or supplied as may be proper
to show maturity date, bond number, etc.)
ARTICLE II
REDEMPTION OF BONDS BEFORE MATURITY
Section 201.- (1) On any interest payment date beginning
with June 1, 1982, the bonds of this series may li - Balled and
redeemed prior to their respective maturities at the option
of said political subdivision, either in whole or in part, from
money in the Sinking Fund not required for paying the principal
of and the interest on the bonds coming due in the then current
sinking fund year and for creating and maintaining a reserve
in said fund in the amount hereinafter provided or in such
larger amount as may be required in any future resolution
authorizing the issuance of parity bonds, or from any money
which may be made available for such purpose and deposited with
the paying agent on or before the date fixed for redemption.
If the bonds are called in part, such call shall be in the inverse
order of their maturities, and, if less than all the bonds of
any maturity are ,called, the bonds of such maturity shall be
called in the inverse order of their numbering.
(2). In the event parity bonds are
hereafter issued, neither the bonds of this series nor of any
such future series of parity bonds may be redeemed in part unless
and until there are on hand in said Sinking Fund sufficient
funds to pay the principal of and the interest on all bonds
of this series and of all issues of parity bonds coming due
in the then current sinking fund year and to maintain a
reserve in the Sinking Fund in the amount required to pay the
highest combined principal and interest requirements on all
outstanding parity bonds in any succeeding sinking fund year,
provided, however, that said political subdivision shall have the
right to acquire as a whole, by redemption or otherwise, all
outstanding bonds of all parity issues from any funds which may
be available for that purpose.
(3) At least thirty days before any
date upon which any such redemption is to be made, a notice
of intention so to redeem, designating the redemption date and
the bonds to be redeemed, signed by the Mayor, with the seal
of said political subdivision impressed thereon and attested
by the signature of the City Clerk, shall be published in a
financial journal of general circulation published in the English
language in the Borough of Manhattan, City and State of New
York, and an executed counterpart of such notice shall be filed
at the places at which the principal of and interest on the
bonds shall be payable and shall be mailed, postage prepaid,
to all registered owners of bonds 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 or
cause any interest to continue to accrue on any bond.
(4) ,Redemption of bonds under this
Article shall bemade by the payment of the principal amount
of the bonds to be redeemed and accrued interest thereon to
the date fixed for redemption together with a premium included
in the call price expressed in percentages of the principal
amount of the bonds to be called as follows:
Bonds maturing up to and including June 1, 1982, are
non - callable. Bonds maturing June 1, 1983, and thereafter are
callable in inverse numerical and maturity order on June 1, 1982,
and on any interest payment date thereafter up to and including
June-1, 1986, at 106, thereafter on any interest payment date
up to and including June 1, 1991,. at 104 1/2, thereafter on
any interest payment date up to and including June 1, 1996, at
103, and thereafter on any interest payment date at 101 1/2.
(5) Should additional parity bonds hereafter
be issued pursuant to and in accordance with authority therefore
1
1
1
herein contained, the bonds of any such future issue or issues
may be redeemed in whole before the bonds, of this series or the
bonds of this series may be redeemed in whole before the bonds
of any such future series or some of the bonds from this series
and some of the bonds from any such future series may be redeemed
at the same time, subject to the Sinking Fund requirements pre-
scribed by the provisions of Section 201(2), hereof.
Section 202. Nothing herein contained shall be
construed to limit the right of said political subdivision to
purchase bonds of this series in the open market at a price not
exceeding the redemption price of the bonds to be acquired from
funds in the Sinking Fund, subject to the Sinking Fund requirements
prescribed by the provision4/of Section 201(1), hereof. Any such
bonds so purchased shall not be reissued and shall be disposed
of as hereinafter provided in Art. IV.
Section 203. Notice having been given in the manner
and under the terms and conditions hereinabove provided, the
bonds so designated for redemption shall, on the redemption date
designated in such notice, become and be due and payable at the
redemption price of the bonds to be acquired. Interest on the
bonds so designated for redemption shall, after the giving of
such notice, cease to accrue from and after the date fixed for
redemption, and interest which otherwise would accrue on such
bonds after the redemption date shall be void unless default
shall be made in the payment of the redemption price upon
presentation of a bond for redemption.
ARTICLE III
CUSTODY AND APPLICATION OF PROCEEDS OF BONDS
CONSTRUCTION FUND
Section 301. Said political subdivision will proceed with
the construction of the improvements to its water and sewer system
and related facilities substantially in accordance with plans,
specifications, and recommendations prepared for said political
subdivision, and with the acquisition and installation of such
items of machinery and equipment as are specified in such plans,
specifications, and recommendations.
Section 302. The amount of $52,000, or such lesser amount
as may be required, from the proceeds of the sale of the bonds
hreby authorized, together with such other funds, if any, as may
be necessary for such purposes, shall be placed in the Water System
Sinking Fund,' heretofore created by the provisions of Art. IV,
of the aforesaid ordinance of November 9, 1950, and the assets
of said Water System Sinking Fund shall be used for paying the
interest on said Series 1950 bonds as the same shall become due
on December 1, 1972, for paying at maturity the principal
of such Series 1950 bonds maturing on December 1, 1972, for
acquiring by call and redemption or otherwise at a cost not
in excess of the redemption price all of said Series 1950 bonds
which are now outstanding and callable and for paying the charges
of the paying agent-
Section 303. Immediately upon the issuance of thebonds
hereby authorized, there shall be placed in said Sinking Fund
an amount which shall be sufficient to pay all outstanding
Series 1950 bonds, the interest to become due thereon on
December 1, 1972, any premium required to be paid for the
redemption of the callable bonds of said issue, and all expenses
and charges required to be paid, and, upon the taking of
appropriate action by said political subdivision to call all the
outstanding Series 1950 bonds which are subject to redemption
which action is herein taken by the terms and provisions of this
resolution, then, the placing of all said money into said Sinking
Fund shall and the same is hereby declared to constitute payment
in full of al],6f said Series 1950 bonds.
Section 304. The assets of the aforesaid Sinking Fund
are hereby irrevocably pledged by said political subdivision for
the purpose of making the payments as provided in Sections 302
and 303 of this Article, and all money and assets of said fund
shall be in trust by said political subdivision for the
benefit and shall be subject to a lien and charge in favor of
the owners of said Series 1950 bonds until the same are retired,
and said fund shall be invested by the depository in direct,
general obligations of the United States of America or obligations
secured by the unconditional guarantee of the United States of
America, and such deposits shall be made to mature as may be
needed to provide such funds as will be required to make the
payments required by the provisions of Sections 302 and 303,
hereof.
Section 305. At or prior to delivery to the purchaser
of the bonds herein authorized, there will be created by said
political subdivision ina depository bank or banks a separate
account or accounts to be collectively designated as the City
of Savannah Beach Water and Sewer Construction Fund, herein
sometimes designated as the Construction Fund, into which shall
be deposited any temporary loans or advances from the United
States of America or other source, all remaining proceeds,
including any premium received, from the sale of the bonds,
except accrued interest which shall be deposited in the Water
and Sewer Revenue Bonds Sinking Fund, hereinafter created in
Article IV, and any other funds acquired by gift, donation,
grant, or otherwise for the construction of the undertaking
and any additional funds which may be required to be furnished
by said political subdivision in order to assure the payment
of all costs of the undertaking. Money in the construction
Fund shall be expended only for the payment of the costs of
acquiring, constructing, and equipping extensions of and additions
and improvements to the existing water and sewer system of said
political subdivision and for acquiring property both real and
personal necessary therefor and paying expenses incident thereto
in accordance with this resolution, and there shall not be paid
out of the Construction Fund any sums except in accordance
with this resolution.
Section 306. Said political subdivision will cause
the Construction Fund depository, at all times, to keep the
funds on deposit in the Construction Fund continuously secured
for the benefit of said political subdivision and the bond owners
in the manner provided in Section 502, hereof, provided however
that it shall not be necessary for the depository so to secure
any portion of the funds on deposit in the Construction Fund
that is insured by the Federal Deposit Insurance Corporation
or other agency of the United States of America that may succeed
to its functions, and provided further that it shall not be
necessary for the depository so to secure any portion of the
funds on deposit in the Construction Fund that is, at the time,
invested pursuant to the provisions of the next succeeding Section
hereof.
Section 307. When the money on deposit in the Construction
Fund exceeds the requirements for obligations to be incurred
in the oonstruction of the project for the next thirty days
as such requirements may be estimated by the project engineer,
the Construction Fund depository is hereby authorized and directed
to invest such excess funds in the manner authorized by law.
The securities in which such funds are so invested shall become
a part of the Construction Fund, and al]4ncome derived therefrom -
shall be deposited in the Construction Fund. The Construction
Fund depository shall, from time to time, sell or otherwise
convert into cash, any such securities if such sale or conversion
is necessary to provide for payment of a requisition or payment
request presented pursuant to the provisions of this Article,
whereupon the net proceeds from such sale or conversion shall
be deposited in the Construction Fund.
Section 308. All money in the Construction Fund or obli-
gations held for such fund shall be subject to a lien or charge
in favor cf the owners of the bonds issued under the provisions
of this resolution and outstanding at any time and shall be held
for the future security of such owners until paid out as herein
provided.
Section 309. For the purposes of this Article, the cost
of acquiring, constructing, and equipping the contemplated ex-
tensions of and additions and improvements to the municipality's
existing water and sewer system to be paid from the Construction
Fund shall include the costs shown in the engineering recommenda-
tions, plans and specifications which have been filed in the
office of said City Clerk, which describe and define the system
to be constructed and the equipment to be acquired, and which
may but shall not necessarily include the purchase and condemnation
of land, easements, and rights of way, construction of access
roads, drilling of wells, laying of water distribution mains
and lines and water supply mains to sources of water supply,
laying of sewage collection and outfall lines, acquisition and
construction of filtration and purification plants, stabilization
ponds, storage tanks, and reservoirs, installation of fire hydrants,
installation of drainage facilities, grading, filling, paving,
turfing, the acquisition of operating tools, trucks and supplies,
and any and all appurtenant facilities and necessary materials
for the acquisition, construction, and equipment of a modern
and efficient water and sewer system without intending hereby
to limit, restrict, or extend any proper definition of such cost
as contained in the Revenue Bond Law or as usual and incident
to the acquisition, construction, and equipment of an efficient
water and sewer system which, in addition, shall include the
cost of the construction work for the project being undertaken,
costs of indemnity and fidelity bonds, cost of land acquisition,
necessary travel expenses, taxes or other governmental charge,
if any, lawfully levied or assessed upon the project or upon
any property acquired therefor during construction, interest on
the bonds issued hereunder during the period of construction and
for six months thereafter, premiums on insurance, if any, in
connection with the said project during construction, fees and
expenses of engineers and architects for surveys, estimates,
preparation of plans, specifications, and drawings and supervising
of construction, as well as for the performance of all other
duties of such engineers and architects in relation to the project,
actual expenses of administration °of construction, telephone,
telegraph, office, and legal expenses, audits, and all other
costs or expenditures not herein specified incident to the acquisi-
tion and construction of and equipment for the project, including
abstracts of title and title insurance, the preparation, issuance,
marketing, printing and engraving of bonds, financing charges
and all expenses incident to the financing of the project,
all other expenses preliminary to construction of such project,
and preliminary to authorization, validation, and issuance of
the bonds, including investigation and expenses incident therto,
obligations incurred for labor and to contractors, builders,
suppliers, and materialmen in connection with the construction
of the project and for machinery and equipment needed foysuch
construction and for the placing of such project into operation,
and obligations incurred for the restoration of property damaged
or destroyed in connection with the construction.
Section 310. Said construction, acquisition, and equip-
ment will be completed as soon as may be practicable, delays
incident to strikes, riots, acts of God and the public enemy,
and similar acts beyond the reasonable control of the munici-
pality only, excepted. Said political subdivision will promptly
pay or cause to be paid, as and when duek all expenses incurred
in and about the project and will not suffer or permit any mechanic's
or materialmen's liens that might be filed or otherwise claimed
or established upon or against the project or any part thereof,
to remain unsatisfied and undischarged for a period exceeding
thirty days after the filing of establishing thereof, provided
however, that said political subdivision may in good faith,
contest any such mechanics' or materialmen's liens claims so
filed or established, and, in the event that such lien claims
are so contested, may permit the mechanics' or materialmen's
liens so contested to remain unsatisfied and undischarged during
the period of such contest and any appeal therefrom, irrespectiv
of whether such period extends beyond the thirty day period
after the filing or establishment of such liens, unless by such
action, the lien or charge hereof on any part o &he project
1
shall be materially endangered or the project or any part thereof
shall be subject to loss or forfeiture, in which event, such
mechanics' or materialmen's liens shall be promptly satisfied.
Section 311. (1) All payments from the Construction
Fund shall be made upon checks signed by the officers of said
political subdivision properly authorized to sign in its behalf
and when any such check shall be for payment of labor, contractors,
builders, materialmen, machinery or equipment, it shall be
accompanied by a certificate of such officers certifying that
(a) an obligation in the stated amount, has been incurred by
said political subdivision and that the same is a proper charge
against the Construction Fund and has not been paid and specifying
the purpose and circumstances of such obligation in reasonable
detail and to whom such obligation is owed, and shall be
`accompanied by the bill or statement of account for such . obligation
or a copy thereof, (b),.uch officers have no notice of any vendor's
mechanic's 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 (c) such bill or
statement of account containes no item representing payment on
account of any retained percentages which the municipality is,
at the date of such certificate, entitled to retain, and, whenever
such obligation shall be incurred for work, material, supplies,
or equipment in connection with the undertaking, which work
was actually performed on, or which material, supplies or equipment
was actually installed in or about the construction or delivered
at the site of the work for that purpose, such check shall also
be accompanied by a certificate of the consulting engineer which
shall state that such obligation was incurred for work, material,
supplies, or equipment in connection with the undertaking and
that such work was actually performed on, or that such material,
supplies, or equipment was actually installed in or about the
construction or was delivered at the site of the work for that
purpose and shall state further that the aforesaid certificate
of the officers of said political subdivision is correct and
is approved by such engineer and that such obligation has been
properly incurred and is due and unpaid.
(2) A check substantially in the following
form accompanied by certificates substantially in the following
form shall be sufficient for the purposes of this Section:
NAME OF BANK
1972
No.
Pay to $
Dollars
from th - -Ciof Savannah Beach Wa (I t,.er nd ewer Con truction
Fund. .e t '�
/s/ E. M. Patterson /s/ M. J. Counihan
CITY CLERK' MAYOR
WE HEREBY CERTIFY THAT:
1. Check in amount of $
is for furnishing
, payable to
2. An obligation in the amount shown above has been incurred
by by said political subdivision, and the same is a proper charge
against the Construction. Fund and has not been paid.
3. We have no notice of any vendor's, mechanic's or other
liens, chattel mortgages, or conditional sales contracts which
should be satisfied or discharged before payment is made.
4. This check does not represent a payment on account of any
retained percentages which said political subdivision asgof this
date is entitled to retain
/s/ E. M. Patterson /s/ M. 4. Counihan
CITY CLERK MAYOR
(The above designated officers, together with the Chairman of
the Finance Committee, or any two of said three officers, unless
it is otherwise provided, shall be the officers authorized to
sign checks on behalf of said political subdivision)
ENGINEERS CERTIFICATE.
WE HEREBY CERTIFY that to the best of our knowledge and belief:
1. The certificate shown above is correct and is approved;
2. The obligation shown has been properly incurred and is due
and unpaid;
1
1
3. The check is for work, material, supplies, or equipment
used or furnished in connection with the construction of the
project, and such work was actually performed on or such materials,
supplies, or equipment were installed or delivered fopthat
purpose at the site of the work.
THIS , 1972.
CONSULTING ENGINEER
By
Section 312. Before making any payments for the purchase
price of any lands, easements, or rights or interest in or re-
]ating to lands, said political subdivision shall receive a
written opininn of its attorney That said political subdivision
is authorized to acquire such lands or rights or interest relating
thereto and that, upon the payment of such purchase price, said
political subdivision will acquire merchantable fee simple title
to such lands or rights or interest therein free from all liens
or encumbrances except such lien, encumbrance, or other defects
of title which will not have a material adverse effect upon
t1ieright,of said political subdivision.to use such lands or
rights or interest therein for the-pdtpose intended or which
have been guarded against by adequate bond or other form of
indemnity. In lieu of this requirement, said political sub-
division shall have the right to acquire a policy of title
insurance issued to said political subdivision insuring the title
to the land to be acquired in an amount equal to the contemplated
improved value of the land which policy shall be issued by a
responsible title insurance company authorized to do business
in the State of Georgia.
Section 313. Any contract relating to construction of
the project shall provide that:
(a) The contractor shall procure and shall maintain
during the life of his contract Workmen's Compensation Insurance
as required by applicable state law for all of his employees
to be engaged in work at the site of the project under his
contract and, in case of any such work sublet, the contractor
shall require the subcontractor similarly to provide Workmen's
Compensation Insurance for all of the latter's employees to be
engaged in such work unless such employees are covered by the
protection afforded by the contractor's Workmen's Compensation
Insurance. In case any class of employees engaged in hazardous
work on the project under such contract _is not protected under
the Workmen's Compensation Statute, the contractor shall provide
and shall cause each subcontractor to provide adequate employer's
liability insurance for the protection of such of his employees
as are not otherwise protected.
(b) The contractor shall procure and shall
maintain during the life of his contract adequate Contractor's
Public Liability Insurance, adequate Vehicle Liability INsurance,
and adequate Contractor's Property Damage Insurance.
(c) The contractor shall either (i) require
each of his subcontractors to procure _ and to maintain during
the life of his subcontract, Subcontractor's Public Liability
and Property Damage of the type and in the same amounts as
specified in the preceding paragraph, or (ii) insure the activities
of his subcontractors in his own policy.
(d) The insurance required under subparagraph
(b) and (c) hereof shall provide adequate protection for the
contractor and his subcontractors, respectively, against damage
claims which may arise from operations under the contract, whether
such operations be by the insured or by any one directly or
indirectly employed by him.
(e) The
maintain during the life of his
(Fire and Extended Coverage) on
on the insurable portion of the
contractor, and subcontractors,
shall be named as the insured.
contractor shall procure and shall
contract Builder's Risk Insurance
a 100% completed value basis
project. The municipality, the
as their interests may appear,
(f) The contractor shall furnish the munici-
pality with_cettificates showing the type, amount,c ass of operations
covered, effective dates and dates of expiration of policies. Such
certificates shall also provide that the insurance covered by the
certificate will not be cancelled or materially altered, except
after ten days written notice has been received by the municipality.
Section 314. Such contractor shall be required to furnish
a performance bond in an amount at least equal to one hundred
percent of the contract price as security for the faithful per-
formance of his contract and also a payment bond in an amount
not less than one hundred percent of the contract price as
security for the payment of all persons performing labor on the
project under his contract and furnishing materials in connection
with his contract. The performance bond and the payment bond
may be in one or in separate instruments in accordance with law.
Section 315. (1) When the project shall have been com-
pleted, the project engineer shall deliver to said political
subdivision a certificate stating the date of completion, the
total cost of labor, material, and equipment, the total cost
of the construction thereof, a list of items which have not
been paid and the amount due or, in case of controversy, claimed
to be due on account of such items, and the amount remaining
in the construction fund and shall also deliver with said certificate
a sworn statement of each general contractor engaged in the
construction that the agreed price of all work done and material
furnished for each facility of the project has been paid.
(2) Said political subdivision shall
deliver a copy of such certificate of completion to the depository
of the Construction Fund and to the representative of the original
purchasers of the bonds.
Section 316. All requisitions and certificates
required by this Article shall be retained by said political
subdivision, subject at all times to inspection by the duly
authorized agent or representative of the original purchasers'
of the bonds.
1
Section 317. When-the project shall have been completed,
should there then be any balance in the Construction Fund, such
balance shall be promptly used to the extent possible for the
redemption or the retirement of bonds, as the case may be, and
any residue shall be deposited in the account established for
the payment of the principal of and interest on the bonds.
ARTICLE IV
REVENUE AND FUNDS
ADDITIONAL PARITY BONDS
Section 401. Said political subdivision will operate
its water and sewer system on a fiscal year basis beginning
May 1 and ending April 30 of each succeeding year, but should it
desire to change its fiscal year at some future date it may do so by
proper resolution of its governing body, and said political sub-
division will continue to maintain the Water System Revenue Fund
in the manner provided in and heretofore created by said ordinance
of November 9, 1950, which fund shall hereafter be designated
as the Savannah Beach Water and Sewer Revenue Fund, into which
fund it will deposit all revenues arising from the operation of
its water and sewer system as it now exists and as it may here-
after be added to, extended, improved, and equipped and said
revenues shal], be disposed of in the manner and order set out in
the following sections hereof.
Section 402. (1) Said political subdivision. and Chatham
County have entered into a contract which, by this reference,
is incorporated herein and made a part hereof, dated as of January 1,
1972, providing for the payment by said County to said political
subdivision of the amount of $60,000 on November 1, in each of the
years 1972 through 2003, in consideration of the use by said
County and the residents thereof of the facilities and services
of the water and sewer system of said political subdivision,
and said contract provides that said political subdivision may
pledge the amount to be paid by the County under said contract to
pay principal and interest of any issue of water and sewer revenue
bonds issued by said political subdivision to pay for the con-
struction of such facilities. In accordance with the provisions
of said contract, said payments shall be made by said County
out of revenues realized for such purposes from ad valorem
taxes to be levied in accordance with the constitution and laws
of the State of Georgia.
(2) In accorance with the provisions of said
contract, said political subdivision does hereby pledge the amount to
be paid by the County under said contract to the payment of the
principal of and interest on the bonds issued hereunder and any
other bonds hereafter issued on a parity therewith, and, by
adoption of this resolution, said political subdivision hereby
directs said County to deposit such payments directly to the
Sinking Fund hereinafter created.
Section 403. (1) There shall first be paid from said
Revenue Fund the reasonable and necessary cost of operating, main-
taining, and repairing the water and sewer system including sala-
ries, wages, cost of materials 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, without
making allowance for depreciation.
(2) At or prior to the delivery of any of the
bonds authorized hereby, said political subdivision will establish
and will maintain, for so long as any of said bonds, or any
future bonds issued on a parity therewith are outstanding, a
special fund to be designated Savannah Beach Water and Sewer
Revenue Bond Sinking Fund, herein called the Sinking Fund, to
be used exclusively_ for the purpose of paying the principal
of and interest on said Series 1972 . bonds and on any bonds that
may be issued hereafter on a parity therewith. Into said Sink-
ing Fund there shall be deposited, in addition to the funds
to be paid by said County directly into said Sinking Fund in
accordance with the provisions of Section 402 hereof, all accrued
interest received from the sale of the bonds, and, there shall
be paid from the Revenue Fund into said Sinking, Fund beginning
with the month of June, 1972, and from month to month thereafter
on or before the last day of each month through the month of
May, 1979, the sum of $5,413, beginning with the month of June,
1979, and from month to month thereafter on or before the
last day of each month through the month of May, 1993., the
sum of $4,29.5, beginning with the month of June, 1993, and
from month to month .thereafter on or before the last day of each
month through the month of May, 2000, the sum of $4,740, and
beginning with the month of June, 2000, and from month to month
thereafter on or before the last day of each month the sum
of $5,025, and all of said payments shall be made for the
purpose of paying the principal of and the interest on the
bonds of this series as the same shall mature and become payable
in the then current sinking fund year and to create within
a period of not more than seven years from the month of delivery
of said bonds and thereafter maintain in said Sinking Fund a
debt service reserve for the purpose of paying such principal
and interest on any payment date on which there would otherwise
be a default in an amount approximately equal to the highest
combined principal and interest requirements in any succeeding
sinking fund year for all bonds of this series, and it will
continue to make said monthly payments until sufficient funds
are on hand to pay all outstanding bonds of this series and the
interest thereon.
Section 404. If, in any month, for any reason, said
political subdivision shall fail to pay all or any part of the
money it has herein agreed to pay into said Sinking Fund, the
amount of any such deficiency shall be added to and shall become
a part of the amount due and payable into said Sinking Fund
in the next succeeding month, and if, at the date of delivery
of the bonds of this series, any of said Sinking Fund payments
provided for herein shall be due and shall have not been made,
such payments shall be made into said Sinking Fund contempora-
neously with such delivery.
1
Section 405. The net revenues remaining in the Revenue
Fund after the payment of the sums required or permitted to be paid
under the provisions of Sec. 403(1) hereof, will be held by said
political . subdivision subject to the provisions of Sec.403(2)hereof,
in trust under the terms and conditions hereof, and, to the extent
herein provided, all such funds are hereby pledged to secure the pay-
ment of the amounts herein agreed to be paid for the payment of the
principal and the interest and call premium, if any on the bonds here-
in authorized to be issued and any future series of parity bonds
issued hereunder, and said political subdivision hereby pledges
such revenues to secure the payment of such amounts. Said reve-
nues so pledged shall immediately be subject to the charge or
lien of this pledge without any physical delivery thereof or
other act, and the charge or lien of this pledge shall be valid
and binding against said political subdivision and against all
parties having claims of any kind against said political subdivision
whether such claims shall have arisen from a tort, contract,
or otherwise and irrespective of whether such parties have notice
of such pledge.
Section 406. Said political subdivision covenants and
agrees that, in the event it hereafter elects to issue additional
bonds on a parity with the bonds of this series as to the pledge
of and charge or lien on such revenues, as it has a right to
do pursuant to the provisions of this resolution, it will enlarge
and extend. said Sinking Fund and, to the extent necessary increase
and extend said monthly payments into said Sinking Fund to pay
the principal of and the interest .. on all of such parity bonds
then outstanding and on the bonds then proposed to be issued
as the same shall mature and become due, and to create a reserve
for thatpurpose in such manner and amount as is consistent
with the requirements of this resolution and with the requirements
of any succeeding resolution providing for the issuance of such
parity bonds.
Section 407. The said Sinking Fund will be maintained
and held in trust by said political subdivision for the benefit
of owners of the bonds of this series and of any pari passu
bonds hereafter issued pursuant to the provisions of this
resolution, and the beneficial interest therein shall be considered
to be in such owners. -
Section 408. Nothing contained herein shall be construed
to prohibit the said political subdivision at its option, from
making additional deposits or payments into said Sinking Fund
from any funds which may be made available for such purpose.
Section 409. (1) Subject to the terms and conditions of
this resolution, money in said Sinking Fund shall be disbursed
for (a) the payment of interest upon bonds secured hereby as
such interest falls due, (b) the payment of the principal of
the bonds secured hereby at their respective maturities, (c)
the redemption of bonds secured hereby before maturity at the
price and under the conditions provided therefor in Article
II, hereof, (d) the purchase, at prices not to exceed the then
current redemption price, and retirement of bonds secured hereby
before their maturity, and (e) the charges of the paying agent
and registrar unless such charges are paid directly from the
Revenue Fund.
(2) The pledge of and charge or lien on said
Sinking Fund created hereby may be opened and extended to secure
the payment of such future pari passu bonds as may beissued
in accordance with the terms hereof.
Section 410. Money yin said Sinking Fund not required
to pay interest falling due on any interest payment date in
the then current sinking fund year and not required to pay the
principal on said bonds falling due on a maturity date in such
year shall be invested in direct general obligations of, or
obligations the principal of and interest on which are unconditional)
guaranteed by, the United States of America and which shall
mature or be payable at such times and in such manner as will
make funds available for the payment of the sums due from said
Sinking Fund and which are subject to redemption at any time.
Any such securities so purchased shall be held by the depository
of the Sinking Fund until paid at maturity, redeemed, or sold,
• and the proceeds thereof, including interest, principal, and
premium, if any, shall be immediately deposited to the credit
of such fund. When a fixed amount is required to be maintained
in said fund, the investments for such fund shall be valued in
terms of current market value as of June 30 and December 31 of
each year. Money in said fund and all securities held .
in and for such fund, and the income therefrom, are hereby
pledged to and charged with the payments required by this
Article to be made from such fund.
1
Section 411. Such funds as shall from time to time re-
main in the Revenue Fund after the payment of all amounts herein -
above required to be paid may be withdrawn from said fund and
used by said political subdivision for any lawful purpose as it
may determine.
Section 412. Said political subdivision will not here
after issue any other bonds or obligations of any kind or nature paya
ble from or enjoying a charge or lien on the revenues of said system
prior to the charge or lien herein created for the payment of
the bonds issued hereunder and any future issue or issues of
parity bonds herein authorized to be issued. Nothing contained
herein, however, shall restrict the issuance of additional bonds
or obligations from time to time payable from the revenues of
the system and secured by a charge or lien on said revenues
junior and subordinate to the charge or lien herein created.
Section 413. Said political subdivision shall, however,
have the power and authority to issue additional revenue bonds
ranking as to the lien on the revenues of said system pari passu
with bonds herein authorized to be issued, provided all of the
following conditions are met:
(a) The payments covenanted to be made into the
Sinking Fund heretofore created, as the same may be enlarged
and extended by any future resolution authorizing the issuance
of parity bonds must be currently being made in the full amount
as required.
(b) The net earnings of the system for a period of
twelve consecutive months out of the eighteen months immediately
preceding the adoption of proceedings for the issuance of such
additional bonds must have been equal to at least one and thirty -
three hundredths times the highest combined interest and principal
requirements for any succeeding sinking fund year on all out -
standing parity bonds, including the bonds of this series and any
other series of parity bonds then outstanding, and on the bonds
proposed to be issued, after deducting from such requirements for
such sinking fund year the payments to be made to said political
subdivision during the same sinking fund year pursuant to the
provisions of the contract between said political subdivision
and Chatham County, to which reference is made in Section 402,
hereof, or pursuant to the provisions of any extension or
modification of such contract, less the combined interest
and principal requirements for the same sinking fund year
on any bonds to be redeemed from any or all of the funds
to be made available by the sale of the bonds proposed to be
issued. Net earnings for the purpose of this provision shall
be construed to be the gross earnings of the system remaining
after the payment of the sums required to be paid to operate,
maintain, and repair the system under Section 403(1), hereof,
without making provision for depreciation.
(c) An independent and recognized firm of certified
public accountants shall certify to the governing body of said
political subdivision that it is complying with the requirements
of Section 413(a), hereof, and has met the requirements of Section
413(b), hereof.
(d) The governing body of said political subdivision
shall pass proper procedings reciting that all of the above re-
quirements have been met, shall authorize the issuance of said
bonds, and shall provide in such proceedings, among other pro -
visions, the date such gonds shall bear, the rate or rates of
interest, maturity dates, and redemption provisions. The interest
on the bonds of any such issue shall be payable on June 1 and
December 1 of each year, and the bonds shall mature in annual
installments on June 1 or December 1, but not necessarily in each
year or in equal amounts. Any such proceeding or proceedings
shall require said political subdivision to increase the monthly
payments then being made into the Sinking Fund to the extent
necessary to pay the principal of and the interest on all such
parity bonds then outstanding and on the bonds proposed to be
issued as the same shall mature and become due and to create
within a period of not more than seven years from the date of
delivery of the bonds proposed to be issued and thereafter main-
tained a reserve in said fund approximately equal to the highest
combined principal and interest requirements in any succeeding
sinking fund year on the then outstanding parity bonds and on
the bonds proposed to issued. Any such proceedings shall
restate and reaffirm by reference all of the applicable terms,
conditions, and provisions of this resolution.
(e) Such additional bonds or obligations and all
proceedings relative thereto -and-- -the security therefor shall be
validated as prescribed by law.
Section 414. All bonds paid, purchased, or redeemed,
either at or before maturity, shall be cancelled when payment
therefor is made and shall be delivered to the finance officer
of said political subdivision together with all unmatured coupons
appertaining thereto, and such bonds and coupons shall not be
reissued. All interest coupons shall be.canceiled.upon their
payment and delivered to - said officer. All bonds and coupons
so cancelled shall be mutilated and destroyed, and -a record
of such mutilation and destruction shall:be filed with the
governing body of said political subdivision. -
Section 415. (1) Any funds not derived from the revenues
of said system which may be paid to or received by said political
subdivision at any time for the purchase or retirement of the bonds
issued hereunder shall be placed in a special fund to be held
in trust by said political subdivision and to be designated
Savannah Beach. Water and Sewer. Revenue Bond, Series 1972,
Redemption Fund, and applied to such purpose so far as possible
in the same manner. as funds in the Sinking -Fund. If and when
sufficient funds are deposited in said Redemption_ Fund. to .pay ,
all outstanding bonds of this series includingf-interest due
or to become due thereon together with the reasonable- charges
and fees of the paying agent and registrar and together with
any premium required to be paid should said bonds be subject
to redemption and said political subdivision shall have taken
appropriate action to call and redeem all outstanding bonds
subject to redemption, such deposit shall constitute payment
in full of said bonds.
1
(2) Payment in full of all bonds issued hereunder
shall also be accomplished if and when sufficient funds are
deposited in said Redemption Fund to constitute, in the aggre-
gate, a sum which, when invested in direct general obligations
of the United States of America or obligations secured by the
unconditional guarantee of the United States of America, will
create, from the principal of and interest on such investments,
funds sufficient in amount to pay all outstanding bonds issued
hereunder and the interest due or to become due thereon together
with the reasonable charges and fees of the paying agent and
registrar and together with any premium required to be paid should
said bonds be subject to redemption and said political subdivision
shall have taken appropriate action to call and redeem all of
said outstanding bonds which shall be subject to redemption.
(3) After provision shall have been made for the
payment of all bonds secured hereby and the interest thereon
and all expenses and charges herein required to be paid, any
balance remaining in the said Redemption Fund shall be paid
to said political subdivision.
Section 416. If, at any time, for any reason, Chatham
County shall fail to pay all or any part of the money it has
agreed to pay in accordance with the provisions of its
aforesaid contract with said political subdivision, dated as of
January 1, 1972, such payment shall become an obligation of the
City of Savannah Beach, Tybee Island.
ARTICLE V
DEPOSITORIES OF FUNDS AND SECURITIES FOR DEPOSIT
Section 501. All money deposited in any fund created
hereby shall constitute trust funds for which said - political
subdivision shall be responsible as trustee and shall be applied
by said political subdivision in accordance with the terms hereof
and for the purposes set forth herein_ and shall not be subject
to lien or attachment by any creditor of said political subdi-
vision, and, except as otherwise provided herein, all funds
received by said political subdivision. under the terms hereof
shall, subject to the giving of security as hereinafter provided,
be deposited with a depository in the name of said.. political
subdividion.
Section 502. No money belonging to any of the funds
created hereunder shall be deposited or remain on deposit with
any depository or custodian in an amount in excess_of the amount
guaranteed by the Federal Deposit Insurance Corporation or other
federal agency succeeding to the functions thereof unless such
institution shall have pledged, for the benefit of _said political
subdivision and the owners of the bonds as collateral security
1
for the money deposited, obligations in which said political
subdivision would be authorized by law to invest the proceeds
of said bonds having a market value, exclusive of accrued interest,
at least equal to the amount of such excess, . provided, however,
that it shall not be required for any such depository to secure
any portion of the funds invested pursuant to the provisions hereof.
Section 503. The paying agent and registrar for said
bonds and the depository for the Construction Fund and the Sink-
ing Fund shall be Savannah Bank & Trust Company of Savannah, in
the City of Savannah, Georgia.
Section 504. At such times as the Sinking Fund depository
and the paying agent for said bonds shall be the same bank acting
in both capacities, such depository shall, without any further
direction on the part of or any further authorization from said
political subdivision, use and disburse the money in said Sinking
Fund as provided in this resolution, except that, if, as provided
under Article II of this resolution, it redeems or buys any
bonds .issued hereunder with money in said Sinking Fund, then,
proper authorization and direction from said political subdivision
shall be furnished for such use and districution of said funds.
ARTICLE VI
PARTICULAR COVENANTS OF THE MUNICIPALITY
Section 601. Said political subdivision has heretofore
established or will establish and it will at all times keep
in effect a schedule of rates, fees, tolls, and charges for
the services, facilities, and commodities furnished by its said
system and., as often as it shall be necessary, it will revise
and adjust such schedule of rates, fees, tolls, and charges
to the extent necessary to produce funds sufficient at all
times to maintain . and operate said system on a sound business.
like basis and to provide sufficient revenues for the maintenance
of the special funds created by this resolution in order to
discharge the purposes thereof in accordance and in compliance
with the terms and conditions of this resolution.
Section 602. In the event said political subdivision
shall fail . to revise and adopt a schedule or schedules of rates,
fees, tolls, and charges in accordance with the provisions of
this Article, any bond owner, without regard to whether any
default, as hereinafter defined, shall have occurred, may in-
stitute and prosecute in any court of competent jurisdiction
an appropriate action to compel the municipality to adopt such
schedule or schedules or to revise such schedule or schedules
in accordance with the requirements of this Article..
Section 603. Such rates, fees, tolls, and charges shall
be classified in a reasonable manner to cover users of the ser-
vices and facilities furnished by the system so that as near
as practicable such rates, fees, tolls, and charges shall be
uniform in application to all users falling within any reasonable
class.
Section 604. No free services will at any time be
furnished from the system. Subject to the provisions of the
aforesaid contract with Chatham County, all services will be
furnished in accordance with rates now or hereafter established,
including services furnished to any county, municipal corporatio
political subdivision, or other public body. No customer will be
connected to the system or be served from the system without a
proper meter having been first installed.
Section 605. All transfers from any fund for which
provision is herein made and all payments from any such fund
shall be made by checks signed by the properly authorized officers
of said political subdivision. All such transfers and payments
will be made at par, and all charges for exchange, fees or
expenses which may be made by any depository of any of the afore-
said funds in effecting such transfers or payments will be paid
from the Revenue Fund as part of the expenses of operating the
system.
Section 606. Said political subdivision will promptly
collect or cause to be collected all service charges and other
obligations arising out of the operation of its -said system
as such obligations become due, and it will apply all collections
and all revenues and income from the system, as collected, as
provided in this resolution and not otherwise. It will promptly
pay the principal of and interest on every bond payable from
the revenues of its water and sewer system at the place, on
the dates, and in the manner herein, in said bonds, and in the
coupons thereto appertaining specified, and any premium required
upon redemption of said bonds, according to the true intent
and meaning thereof. The principal of and interest on all bonds
issued hereunder and call premiums, if any, and the charges
of the registrar and paying agents 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
particularly specified, and nothing herein contained or in the
bonds or coupons shall be construed as an obligation of said
political subdivision to levy or to pledge any form of taxation
whatever .. therefor_ or to make any appropriation for their payment,
except from revenues of said system, including revenue to be
derived from Chatham County, and no bond owner shall have any
recourse to the power of taxation nor shall any bond constitute
a charge, lien, or encumbrance, legal or equitable, upon any
property of said political subdivision other than said revenues.
Section 607. Said political subdivision will continuously
maintain the system in good order and repair and will enforce
reasonable rules and regulations governing the system and the
operation thereof. All compensation, salaries, fees, and wages
paid in connection with the maintenance, repair, and operation
of the system will be reasonable, and no more persons will be
employed than are necessary. Said political subdivision will
operate the system in an efficient and economical manner, will
at all times maintain the same in sound operating condition,
will make all necessary repairs, renewals, and replacements,
and will comply with all valid acts, rules, regulations, orders,
and directions of any legislative, executive, administrative,
or judicial body applicable to such undertaking. Said political
subdivision will, also, at all times carry fidelity bonds on
all of its officers and employees who may handle funds derived
from said system, and such bonds shall be in such amounts as
are at least equal to the total funds in the custody of such
officer or employee at any one time.
Section 608. Said political subdivision will not create
or permit to be created in the operation and maintenance of
the system any lien or charge thereon or on any part thereof
or upon the revenues derived therefrom as the system now exists
or as it may hereafter be extended and improved ranking equally
with, except as herein provided, or prior to the lien or charge
herein created upon such revenues, and-it will pay or cause
to be discharged or will make adequate provisions to satisfy
and discharge, within sixty 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 said political subdivision to pay, or cause to be dis-
charged, or make provisions for the discharge of any•such lien
or charge so long as the validity thereof shall be contested
in good faith and by appropriate legal proceedings.
Section 609. Not later than the fifteenth day of each
calendar month, said political subdivision will make a partial
payment to each construction contractor on the basis of a duly
certified and approved,, estimate of . the work performed during
the preceding calendar month by the particular =contractor, but
will retain until final completion and acceptance of all work
covered by the particular contract a reasonable amount, specified
in the contract, sufficient to insure the proper performance
of the contract.
Section 610. (a) If the project or other facilities, the
revenues of which are pledged, includes structures above ground
level, upon acceptance of the project from the contractor, said
political subdivision will, if such insurance is not already in
force, procure fire and extended coverage insurance on the in-
surable portions of the project, and, upon receipt of funds
acquired pursuant to the sale of the bonds, said political sub-
division will, if such insurance is not already in force, procure
fire and extended coverage insurance on the insurable portion
of any other of its facilities, the revenues of which are pledged
to the security of the bonds issued hereunder. The foregoing
fire and extended coverage insurance will be maintained so long
as any of the bonds are outstanding and will be in the amount of
the full insurable' value of the insured property. In the event
of any damage to or destruction of any of said facility or
facilities, said political subdivision will promptly arrange
for the application of the insurance proceeds for the repair,
reconstruction, or replacement of the damaged or destroyed
portion thereof unless it shall be determined that such repair,
reconstruction, or replacement is not economically feasible
for the reason that the revenue of the system would not be
increased thereby sufficiently to justify, in good business
practice, the expenditure therefor of such insurance proceeds.
(b) Upon receipt of any funds acquired pursuant
to the sale of the bonds, said political subdivision will, if
such insurance is not already in force, procure and maintain,
so long as any of the bonds are outstanding, adequate public
liability insurance relating to the operation of the project
facilities to protect said political subdivision from claims
for bodily injury and for death and from claims for damage to
property of others which may arise from the operation of the
project or any other facilities the revenues of which are pledged.
(c) If said political subdivision owns
or operates .a vehicle in the operation of the project, including
any vehicle not owned by but operated for the benefit of said
political subdivision, upon receipt of any funds acquired pursuant
to the sale of the bonds, said political subdivision will, if
such insurance is not already in force, procure and maintain,
so long as any of the,bonds authorized hereby are outstanding,
adequate vehicular public liability insurance to protect said
political subdivision from claims for bodily injury and for
death and against claims for damage to property of others which
may arise from the operation of such vehicles.
(d) The proceeds of all such insurance
policies, except the public liability policies, are pledged
as security for the outstanding bonds issued hereunder and
those which may hereafter be issued pari passu thereto in
accordance with the provisions hereof, but such proceeds shall be
available for and may be applied to the cost of repair and replacemen•
of the damaged or destroyed property, provided that any portion
of such proceeds remaining after payment in full of such costs
shall be paid into the Sinking Fund, or, if the property is
not repaired or replaced, the proceeds shall be placed in said
Sinking Fund.
Section 611. Said political subdivision will keep the
funds and accounts of the system separate from all other funds
and accounts of said political subdivision or of any of its
departments, and it will keep accurate records and accounts
of allitems of cost and all expenditures relating to the system
and of the revenues collected and the application thereof and
of the number of customers, and it will keep said records and
accounts with respect to its physical property in such manner
that it will be possible at all times to identify both the amounts
and the items of all additions and retirements.
Section 612. Said political subdivision will permit
the owner of any of the bonds, or the agent orattorney for
such owner duly appointed and authorized in writing, to examine
and inspect the system and all papers, contracts of insurance,
books, records, accounts, and data-relating thereto at all
reasonable times, and will permit copies or transcripts thereof
to be made by any such person or persons at all reasonable times.
Section 613. At the end of each fiscal year or as soon
thereafter as practicable, but in no event later than ninety
days after the end of each such year, said political subdivision
will cause an audit to be made of its books and accounts pertaining
to its said system by an independent accountant of suitable
experience and responsibility to be chosen by its governing
body. Such annual audit shall include a statement of the income
and expenses and a reasonably detailed- balance sheet, comments
by the auditor respecting compliance by said political subdivi-
sionwith the provisions of this resolution, a list of insurance
policies in force respecting the system and its operation showing
the nature and amount of the risks covered, and a tabulation
of the number of customers showing the classification thereof
as residential, commercial, industrial, or other class. The
original of such annual audit and statement will be filed in
the permanent records of said political subdivision, and copies
of same will be forwarded to all bond owners whose name and
address shall have been filed with said political subdivision
for thatpurpose. Said political subdivision will cause any
additional reports or audits relating to such system to be made
as may be required by law and, from time to time and as often
as may be requested in writing it will furnish to any owner or
owners of bonds and to the member firms of the account constitu-
ting the original purchasers of the bonds such other information
concerning such enterprise or the operation thereof, including
quarterly reports of operating revenue and expense,asany of
them may reasonably request. The cost of such audits and of
such imports shall- be treated as a part of the cost of operation.
Section 614 (1) So long as any of the bonds issued
hereunder or bonds issued on.a parity therewith are outstanding
and unpaid, said political subdivision will not sell, lease
or otherwise dispose of or encumber said system or any of its
related facilities as a whole or substantially as a whole and
it will not create or permit to be created any charge or lien
on the revenues of such system ranking equally with or prior to
the charge or lien on such revenues created by this resolution
for the security of the bonds authorized hereby, except by
parity bonds issued in accordance with the provisions hereof,
unless the proceeds of such sale, lease, or other disposition
together with other funds available for that purpose in the
Sinking Fund shall be at least sufficient of provide for the
payment of the principal of and the interest on the bonds issued
under and secured by this resolution and then outstanding, in-
cluding any such future parity bonds, at their . respective maturi-
ties as such principal and interest shall become due, together
with the charges of the registrars and paying . agents, . and the
proceeds of any such sale shall be deposited in the Sinking Fund
and applied, to the extent necessary, to the payment of such
bonds and the interest thereon.
(2) Said political subdivision may, however,
from time to time sell or dispose of any machinery, fixtures, appa-
ratus, tools, instruments, or other, movable property constituting
a part of the system and related facilities as the same may be
added to, extended, and improved, if said political subdivision
shall determine that such articles are no longer needed or have
become inadequate, obsolete, worn out, or unsuitable or are no
longer useful in connection with the operation of thep roject
and if the proceeds of any such sale or disposition shall be
applied to the replacement of the property and material so sold
or disposed of or shall be deposited to the credit of the
Sinking Fund.
(3) Said political subdivision may,however,
lease or sell any part of its system, provided (a)such lease or sale
will not in any way adversely affect the revenues of the system,
(b)said political subdivision shall make a determination that such
property or facility is not needed and serves no useful purpose in
connection with the maintenance and operation of the system and its
related facilities, (c) The proceeds from such lease or sale are
used for extensions to or improvements of the project or are de-
posited to the credit of the Sinking Fund, and (d) said political
subdivision is in compliance with all covenants and undertakings
in connection with all of its bonds then outstanding and payable
from the revenues of the system.
Section 614. Any such deposits to the Sinking Fund
which may be made pursuant to any provision of this Article VI,
shall be in addition to all other deposits required to be made
thereto.
Section 615. It is reasonably expected . that the
proceeds of the issue of the bonds authorized hereby will not
be used in a manner that would cause the obligations to be
arbitrage bonds under 26 U.S.C.A. §103(d)(2), and the proposed
regulations of the Internal Revenue Service thereunder.
ARTICLE VII
REMEDIES
Section 701. 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
bonds secured hereby shall not be made when the same shall become
due and payable, either at maturity or by proceedings for redemption,
(b) Payment of any installment of interest
shall not be made when the same shall become due and payable or
within thirty days thereafter,
(c) Said political subdivision shall, for
any reason, be rendered incapable of fulfilling its obligations
hereunder,
(d) An order or decree shall be entered with
the consent or acquiescence of said political subdivision appointing
a receiver or receivers of the system or of the revenues
therefrom or any proceedings shall be instituted with tle consent
or acquiescence of said political subdivision for the purpose
of effecting a composition between said political subdivision
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,
1
1
1
or if such order or decree, having been entered without the
consent and acquiescence of said political subdivision, shall
not be vacated or discharged or stayed on appeal within sixty
days after entry thereof or if such proceeding, having been
instituted without its consent or acquiescence, shall not be
withdrawn or any orders entered shall not be vacated, discharged,
or stayed on appeal, within sixty days after the institution
of such proceedings or the entry of such order, or
(e) Said political subdivision shall default
in the due and punctual performance of any other of the covenants,
conditions, agreements, or provisions contained in the bonds
secured hereby or in this resolution on its part to be performed,
and such default shallcontinue for hirty days after written
notice specifying such default and requiring same to be remedied
shall have been given to said political subdivision by any bond
owner.
Section 702. Upon the happening and continuance of
any event of default by said political subdivision in any one
of the ways specified in the preceding section, the owners of
the bonds then outstanding shall have the following rights and
9' 9'
remedies:
(a) The owners of not less than a majority
in principal amount of the bonds then outstanding may, by a notice
in writing to said political subdivision, declare the principal of
all of the bonds then outstanding, if not then due and payable,
to be due and payable together with the interest thereon, and,
upon such declaration,-such bonds and the interest thereon shall
become and be immediately due and payable, anything in the bonds
or herein contained to the contrary notwithstanding, provided,
however, that if, at any time after the principal of the bonds
shall have been so declared to be due and payable, all arrears
of interest, if any, upon all the bonds then outstanding and
all other indebtedness secured hereby except the principal of
any bonds not then due by their terms and the interest accrued
on the bonds since the last interest payment date, shall have
been paid or such payment shall have been provided forty the
deposit with the paying agent of a sum sufficient to pay the
same, and every other default in the observance or performance
of any covenant, condition, or agreement in the bonds or herein
contained shall be made good or provisions therefor satisfactory
to such bond owners shall have been made, then and in every such
case, the owners of not less than a majority in principal
amount of the bonds then outstanding may, by written notice to
said political subdivision, rescind and annual such declaration
and its consequence, but no such rescission or annulment
shall extend to or affect any subsequent default or impair any
right relative thereto.
(b) Any bond owner may proceed, subject to
the provisions of Section 704, hereof, with any other right
or remedy independent of or in aid of the foregoing powers as
such bond owner may deem best, including the right to secure
specific performance by said political subdivision of any covenant
or agreement herein contained, the right to protect and enforce
the rights of the bond owners hereunder by suit, action, or
special proceedings in equity or at law in aid or execution
of any power herein granted or for the enforcement of any proper
legal or equitable remedy deemed most effectual to protect and
enforce such rights, the right to the appointment, as a matter
of right and without regard to the sufficiency of the security
afforded by the project, of a receiver for all or any part of
the project and the earnings, revenues, and income therefrom
and the rights given to municipalities to enforce remedies afforded
to bond owners under the Georgia Revenue Bond Law, Ga. Code
Ann., Ch. 87 -8. The rights herein specified are to be cumulative
of all other available rights, remedies, or powers and shall
not be exclusive of any.
Section 703.. In case any proceeding taken by any bond
owner on account of any default shall have been discontinued
or abandoned for any reason or shall have been determined ad-
versely to such bond owner, then and in every such case, said
political subdivision and the bond owners shall be restored
to their former positions and rights hereunder, respectively,
and all rights, remedies, powers, and duties of the bond owners
shall continue as though no such proceedings had been taken.
Section 704. No one or more owners of the bonds secured
hereby shall have any right in any manner whatever by his or
their action to affect, disturb, or prejudice thg6ecurity
granted and provided herein or to enforce any right hereunder
except in the manner herin provided, and all proceedings at
law or in equity shall be instituted, had, and maintained for
the equal benefit of all owners of such outstanding bonds and
coupons.
Section 705. No remedy herein conferred upon the bond
owners 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 orhow
or hereafter existing at law or in equity or by statute.
Section 706. No delay or omission of any bond owner
to exercise any right or power accruing upon any default occurring
and continuing as aforesaid shall impair any such right or power
or be construed as a waiver of any default or an acquiescence
therein and every power and remedy given by this Article to the
owners of the bonds may be exercised from time to time and as often
as may be deemed expedient.
1
1
1
ARTICLE VIII
SUPPLEMENTAL PROCEEDINGS
Section 801. Anything to the contrary herein notwith-
standing, said political subdivision may,, from time to time, adopt
such proceedings supplemental hereto as shall be deemed necessary
or desirable for the purpose of modifying, altering, amending,
adding to, or rescinding, in any particular, any of the terms or
provisions contained herein or in any supplemental resolution or
in the bonds, provided, however, that there shall be no modifica-
tion, amendment, or supplemental proceedings to:
(a) Alter the date fixed in any of the bonds
or coupons for the payment of the principal of or any interest on
any bond or otherwise modify the terms of payment of the princi-
pal at maturity of or interest on any bond or impose any condi-
tions with respect to such payment or affect the right of any
bond owner to institute suit for the enforcement of any such pay-
ment as provided herein,
(b) Alter the amount of principal of or the
rate of interest or redemption premium, if any, payable on any bond,
(c) Affect the rights of the owners of less
than all of the bonds then outstanding,
(d) Reduce the percentagg6f the principal
amount of the bonds the consent of the owners of which shall be
requiredE_for the authorization of any such modification or
amendment or reduce the percentage of the principal amount of
bonds the action of the owners of which shall be required to
declare all outstanding bonds to be due pursuant to the provisions
of Section 702, hereof, or
(e) Create any lien or charge on the revenues
from the general operation of said system prior or superior to
the lien or charge created on the revenues of the system as
security for the payment of the bonds of this series and any
other parity bonds hereafter issued pursuant to the provisions
of this resolution.
Section 802. A modification or amendment of the provi-
sions with respect to the Sinking Fund as authorized hereby
shall not be deemed a change in the terms of payment.
Section 803. Nothing herein contained, however, shall
be construed as making necessary the approval by the bond owners
of any resolution not inconsistent with the terms and provisions
of this resolution and any supplemental proceedings forming
a part hereof to cure any ambiguity or to cure, correct, or
supplement any defect, omission, or inconsistent provision contained
herein or in any supplemental proceedings or to grant any additional
rights, remedies, powers, authority, or security that may law-
fully be granted to or conferred upon the bond owners, or to
make any provisions with respect to matters arising hereunder
for any other purpose if such provisions are necessary or desirable,
are not inconsistent with any provision hereof, and do not adversely
affect the interest of any bond owner.
Section 804. (a)Whenever said political subdivision
shall propose any such supplemental resolution, the governing
body of said political subdivision shall adopt such resolution,
and, unless the owners of all then outstanding bonds of this
series shall have filed their names and addresses with the bond
registrar or with the City Clerk of said political subdivision
or unless the owners of all such bonds file with said City Clerk
instruments approving the adoption of such resolution, as hereinafter
provided, accompanied by proof of ownership as hereinafter provided,
said political subdivision shall publish such resolution once
a week for two consecutive weeks in a financial journal of general
circulation published in the English language, regularly at
least five days each week, in the Borough of Manhattan, City
and State of New YOrk.
(b) A notice in substantially the following
form shall be published with the resolution:
"To the owners of City of Savannah Beach, Georgia,
Water and Sewer Revenue Bonds, Series 1972:
"The following resolution was adopted by the City Council
of the City of Savannah Beach, Tybee Island, Georgia,on
19 , and, sugject to the provisions of the resolution authorizing
the issuance of said Series 1972 bonds, adopted ,1972,
the resolution set forth below will become effective thirty days
after the owners of at least seventy five percent in aggregate
principal amount of said bonds then outstanding shall have filed
with the City Clerk of said City of Savannah Beach, Tybee Island,
Georgia, instruments approving the adoption of said resolution.
Each such instrument shall be accompanied by proof of ownership
of the bonds to which such instrument refers which proof shall
be such as is permitted by the provisions of article VIII of
the above mentioned resolution. L. i_/
/s/ E. M. Patterson
CITY CLERK, CITY OF SAVANNAH BEACH
TYBEE ISLAND, GEORGIA
Section 805. On or before the date of the first publica-
tion thereof, said political subdivision shall cause a copy
of such supplemental resolution and of the above mentioned notice
to be mailed, postage prepaid, to all owners of bonds of this
series who shall have filed their names and addresses with the
bond registrar or with said City Clerk. Should any bonds on
a parity with the bonds of this series be hereafter issued,
then, the form of notice hereinabove set forth shall be modified
to notify the owners of such issue or issues of parity bonds
as well as the owners of the bonds of this series and of all
other outstanding parity bond issues.
Section 806. No such supplemental resolution shall
become effective unless the owners of at least seventy five
percent in aggregate principal amount of the then outstanding
bonds of this series and any issue or issues on a parity
therewith issued subsequent hereto shall have filed with said
City Clerk, within six months after the date of adoption of such
resolution, instruments approving the adoption of such resolution,
each such instrument to be accompanied by proof of ownership of
the bonds to which such instrument refers, which proof shall be
such as is permitted by the provisions of this Article.
Section 807. Any action or proceeding in any court
objecting to such supplemental resolution or to any of the terms
and provisions therein contained or to the operation thereof
or in any manner questioning the propriety of the adoption thereof
or the execution by any bond owner of any instrument purporting
to approve the adoption of such resolution or to enjoin or restrain
said political subdivision from taking any action pursuant to
the provisions thereof, must be commenced within thirty days
after the governing body of said political subdivision shall
have determined that the owners of at least seventy five percent
in aggregate principal amount of the then outstanding bonds
of this issue and of any issue or issues on a parity therewith
issued subsequent hereto have approved the adoption of such
resolution.
Section 808. Upon the expiration of such thirty day
period or, if any such action or proceeding shall be commenced,
upon any judgment or decree sustaining such supplemental resolution
becoming final, this resolution and any resolution hereafter
authorizing the issuance of bonds on a parity with the bonds
of this series shall thereupon be modified and amended in accordance
with such supplemental resolution, and the respective rights,
duties, and obligations, under this resolution and under any
resolution hereafter authorizing the issuance of bonds on a
parity with the bonds of this series, of all owners of outstanding
bonds of this series and of pari passu bonds issued subsequent
hereto shall thereafter be determined, exercised, and enforced
hereunder, subject, in all respects, to such modifications and
amendments.
Section 809. Any supplemental resolution adopted and
becoming effective in accordance with the provisions of this
Article shall thereafter form a part of this resolution, and
all the terms and conditions contained in any such supplemental
resolution as to any provisions authorized to be contained therein
shall be part of the terms and conditions of this resolution
and shall be effective as to all owners of the then outstanding
bonds of this series and of any subsequent bonds issued on a
parity with the bonds of this series, and no notation or legend
of such modifications and amendments shall be required to be
made on any such outstanding bonds or coupons thereto appertaining.
Section 810. (a) Any request, waiver, direction, consent,
or other instrument requiredby this resolution to be signed
or executed by bond owners may be in any number of concurrent
writings of similar tenor and may be signed or executed by such
bond owners in person or by agent or attorney appointed in writing.
Proof of the execution of any such instrument, or of the writing
appointing such agent, and of the ownership of bonds, if made
in the following manner, shall be sufficient for any purpose
of this resolution and shall be conclusive in favor of said
political subdivision with regard to any action taken by it
under such instrument.
(1) The fact and date of the execution
by any person of any such instrument may be proved by an affidav'
of a witness to such execution or by the certificate of any
officer in any jurisdiction, who, by the laws thereof, has
power to take acknowledgments within such jurisdiction, to the
effect that the person signing such instrument acknowledged
before him the execution thereof.
(2) The ownership at any given time
of an unregistered bond or coupon may be proved by the certifi-
cate, if deemed satisfactory to said political subdivision,
of any trust company, bank, or banker, wherever situated, stating
that on the date stated the stated party had on deposit with
or exhibited to it the bond or coupon described. The ownership
at any given time of a registered bond mayle proved by a certifi-
cate of the registrar stating that on the date stated the regis-
tered bond described was registered on its books in the name
of the stated party. Said political subdivision may conclusively
assume that such ownership continues until written notice to
the contrary is served upon it.
(b) Any request or consent of the owner of
any bond shall bind every future owner of the same bond in res-
pect of anything done by said political subdivision in pursuance
of such request or consent.
ARTICLE IX
CALL OF 1950 BONDS
Section 901. Pursuant to the provisions of Article II,
of the aforesaid ordinance of November 9, 1950, the City of
Savannah Beac], Tybee Island, shall and hereby does exercise
its option to redeem on December 1, 1972, all outstanding Savannah
Beach, Tybee Island, Water Revenue Anticipation Certificates,
dated December 1, 1950, authorized by said ordinance and maturing
after December 1, 1972, and the same are hereby called for re-
demption on December 1, 1972, and the owners of all of said revenue
certificates shall present the same for redemption and payment
on that date and receive therefor the principal amount thereof,
the call premium, and' _all interest due thereon to December 1, 1972.
Section 902. At least thirty days before the redemption
date designated in Section 901, hereof, notice of intention to
so redeem signed by the Mayor and attested by the City Clerk
of said political subdivision, designating the redemption d ate
and the certificates to be redeemed shall be published in a news-
paper of general circulation in the City of Savannah, Georgia,
and shall be filed with the duly authorized and designated paying
agent, i.e., the Savannah Bank &Trust Company of Savannah, Georgia,
the place at which the principal of and interest on the bonds shall
be payable and shall be mailed, postage prepaid, to all registered
owners of certificates to be redeemed whose addresses shall
appear upon the books of registration, and, notice having been
given in the manner and under the conditions hereinabove and in
Article II, Section 1, of said ordinance of November 9, 1950,
provided, the certificates so designated for redemption shall,
on the redemption date designated in said notice, become and be
due and payable at the recemption price specified in said Article II,
1
1
of said ordinance of November 9, 1950, and interest on the
certificates so designated for redemption shall, after the
date fixed for redemption, cease to accrue, and interest coupons
maturing after such redemption date shall become void.
Section 903. Said notice shall be substantially in
the following form:
NOTICE OF REDEMPTION
OF
SAVANNAH BEACH, TYBEE ISLAND,"GEORGIA
WATER REVENUE ANTICIPATION CERTIFICATES
DATED DECEMBER 1, 1950
NOTICE IS HEREBY GIVEN to the owners of the following
described Savannah Beach, Tybee Island, Georgia, water Revenue
Anticipation Certificates, dated December 1, 1950, of the inten-
tion of the City of Savannah Beach, Tybee Island, to redeem in
whole the outstanding certificates of said issue maturing after
December 1, 1972, and said city has exercised its option so to
redeem said bonds and has called the same for redemption on
December 1, 1972, said outstanding certificates maturing after
December 1, 1972, being in the aggregate principal amount of
$45,000 of the denomination of $1,000 each, numbered 111 through
153, and 159 and 165, bearing interest at the rate of 3 1/4%
per annum payable semiannually on June 1 and December 1, and
maturing serially on the first day of December in the amount of
$7,000 in each of the years 1973 through 1978, $2,000 in the
year 1979 and $1,000 in the year 1980.
Funds for the payment of the certificates being redeemed
for all interest due thereon to December 1, 1972, and for the
required redemption premium will be deposited with the Savannah
Bank & Trust Company of Savannah, Georgia, the duly designated
and authorizedhpaying agent, on or before December 1, 1972, the
date fixed for redemption, and the above described certificates
and all unmatured coupons thereto appertaining should be presented
to the paying agent for redemption and payment on that date.
Interest on said certificates designated for redemption shall
cease to accrue on December 1, 1972, and said interest coupons
maturing after that date shall be void.
This notice is given pursuant to the provisions of an
ordinance of the Mayor and Councilmen of the Town of Savannah
Beach, Tybee Island, Georgia, adopted November 9, 1950, providing
for the issuance and for the redemption of said outstanding
certificates dated December 1, 1950, and to a resolution of said
body adopted July 19, 1972, exercising the option so to redeem
and callin s outstanding certificates for redemption
ATTEST: CITY OF SAVANNAH BEACH TYB I ND
/s/ E. M. Patterson By: /s/ M. J. Counihan w it_
CITY CLERK MAYOR
ARTICLE X
MISCELLANEOUS PROVISIONS AND DEFINITIONS
Section 1001. Any bank or trust company with or
into which the paying agent 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 purpose of this resolution.
Section 1002. The provisions, terms, and conditions
of this resolution shall constitute a contract by and between
said political subdivision and the owners of thet bonds authorized
to be issued hereunder, and, after the issuance of the bonds of
this series, this resolution shall not be repealed or amended
in any respect which will adversely affect the rights and interest
of the owners of the bonds nor shall the governing body of said
political subdivision pass any ordinance or resolution in any
way ever adversely affecting the rights of such owners so long
as any of the bonds authorized by this resolution or the interest
thereon shall remain unpaid, provided, however, that the provisions
of this Section shall not be construed to restrict or impair
any rights reserved to said political subdivision by the provisions
of Article VIII, hereof.
Section 1003. Any subsequent proceeding or proceedings
authorizing the issuance of additional parity bonds as permitted
under the provisions of this resolution shall in nowise conflict
with the terms and conditions of this resolution, but shall,
for all legal pruposes, contain all the covenants, agreements,
and provisions of this resolution for the equal protection and
benefit of all bond owners.
Section 1004. Should any bonds or coupons not be
presented for payment when due, said political subdivision shall
retain in the Sinking Fund, from the funds transferred thereto for
the purpose of paying said bonds and coupons, for the benefit of
the owners thereof, a sum of money sufficient to pay such bonds
or coupons when the same are presented by the owners thereof
for payment, upon which sum the depository shall not be required
to pay interest. All liability of said political subdivision
to the owners of such bonds and coupons, if any, and all rights
of such owners against the municipality under the bonds and
coupons, if any, or under this resolution shall thereupon terminate,
and the sole right of such owners shall thereafter be against
such deposit. If any bond or coupon shall not be presented
for payment within the period of ten years following the date
when such bond or coupon becomes due, said political subdivision
may transfer to its general fund all funds theretofore held
by it in said Sinking Fund for payment of such bond or coupon,
and such bond or coupon shall, subject to the defense of any
applicable statute of limitations, hereafter be an unsecured
obligation of said political subdivision.
Section 1005. The bonds herein authorized shall be
validated in the manner provided by law, and, to that end,
notice of- the adoption of this resolution and a copy hereof
shall be served upon the District Attorney'of the Eastern
Judicial Circuit of Georgia in order that proceedings for the
above purpose may be instituted in the Superior Court of
Chatham County,. -and said notice shall be executed by the Mayor
and the seal of said political subdivision shall be affixed
and attested by the City Clerk.
Section 1006. Whenever used in this resolution the
singular shall include the plural and the plural shall include
the singular unless the context otherwise indicates, and the
following words and phrases and others evidently intended as the
equivalent thereof, whenever used in this instrument, unless the
context clearly indicates otherwise, shall be given the following
respective meanings:
(a) Fiscal year, means the period commencing
on the first day of May and extendingthrough the last day of April
in the succeeding year.
(b) Sinking Fund year, means the period
commencing on June 2 in each year and extending through June 1 of
the succeeding year. (c) The City of Savannah Beach, Tybee Island,
and other terms making reference thereto mean the present governing
body of said political subdivision and any successor or successors
in office to said present body or any person, body, or authority
to whom or to 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 said system.
(d) Water and sewer system, system, project,
and undertaking shall be construed as one and the same and mean
the facilities now or hereafter owned by said political subdivision
and used by it in furnishing water and sewer services and facilities.
(e) Consulting engineers, project engineer,
and other terms making reference thereto, mean the engineer
for said political subdivision or such other engineer, engineers,
or engineering frim that might be hereafter employed by said
political subdivision pursuant to the provisions of this resolution
in relation to the supervision of the acquisition and construction
of the Improvements to said system and in relation to the services
to be rendered as in this resolution provided.
Section 1007. In case any one or more of the provisions
of this resolution or of the bonds or coupons issued hereunder
shall for any reason be held to be illegal or invalid by a
court of competent jurisdiction, such illegality or invalidity
shall not affect any other provisions hereof or of said bonds
or coupons unless expressly so held, but this resolution and
said bonds or coupons shall be construed and enforced as if
such illegal or invalid provisions had not been contained
herein or therein, and this resolution shall be construed to
adopt, but not to enlarge upon, all the applicable provisions
of said Georgia Revenue Bond Law, and, if any provisions hereof
conflict with any applicable provision of said law, the latter
as adopted by the legislature and as interpreted by the courts
of this state shall prevail and shall be substituted for any
provision hereof in conflict or not in harmony therewith.
Section 1008. Any and all ordinances or resolutions
or parts or ordinances or resolutions in conflict with this
resolution shall be and the same hereby are repealed, and this
resolution shall be in full force and effect from and after its
adoption.
l:
9/(/7(
2.
/s/ M. J Counihan
APPROVED AND ADOPTED, JULY
MAYOR
1
1
1
1
AN ORDINANCE
AN ORDINANCE TO AMEND SECTION 3 -1 OF THE CODE OF ORDINANCES,
CITY OF SAVANNAH BEACH, TYBEE ISLAND, GEORGIA, PERTAINING TO
ALCOHOLIC BEVERAGES, BUSINESS HOURS, SO AS TO RE- DEFINE THE
TIMES THAT ALCOHOLIC BEVERAGES OR SPIRITUOUS LIQUORS MAY BE
SOLD BY PERSONS OR BUSINESSES HAVING LICENSES ISSUED BY THE
MUNICIPALITY; AND FOR OTHER PURPOSES.
SECTION I. Be it ordained by the Mayor and Councilmen of the
City of Savannah Beach, Tybee Island, Georgia in council duly
assembled and it is hereby ordained by authority of the same
that Section 3 -1(a) sub- sections (1) through (5) be struck in
their entirety and inserting in lieu thereof the following:
"(1). It shall be unlawful for any person or
business to sell or offer for sale any alcoholic
beverages or spirituous liquors as such terms
are defined in Georgia Code Section 58 11, on
Sundays, that is between the hours of 12:00
o'clock P.M. midnight on Saturday night and
12:00 o'clock P.M. midnight on Sunday night, and
on election days beginning one hour prior to the
opening of the polls and ending one hour after
the closing of the polls."
SECTION II. All ordinances or parts of ordinances in conflict
with this ordinance are hereby repealed.
ADOPTED IN OPEN COUNCIL this 16th day of August, 1972.
First Reading:
Second Reading:
Adopted:
ATTEST:
CITY OF SAVANNAH BEACH, TYBEE ISLAND, GEORGIA
July 19, 1972
August 16, 1972
August 16, 1972
Clerk of Council