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HomeMy Public PortalAbout19760223SCMeeting1 Savannah Beach, Georgia February 23, 1976 A Special Called Meeting of City Council was held this after- noon in the Council Room at City Hall for the purpose of working out the necessary financial arrangement with the Savannah Bank and Trust Company which would enable the City to meet the request for payment from Griffin Construction Company, since the City would not have this amount of money on hand until our request from the E.P.A. for a partial payment on our grant came through. The second purpose for which the meeting was called was to discuss the extending of a city sewer line to the site of the new Veranda Motel Restaurant and to try to determine the cost of same. The meeting was presided over by Mayor M. J. Counihan and a quorum consisting of the following Councilmen was present: Edward Fahey, James Bond, John Wylly, Bob Davenport and Richard DeLoach. City Attorney Bill Pinson was also present. Others attending the meeting were Mr. Joel Mason representing Griffin Construction Company, Mr. Warren Bell, Resident Inspector of Sewer Project, Mr. Dennis Ronning, Chief Auditor for City of Savannah Beach and Mr. Gus Holman and Bob Patterson of Savannah Bank and Trust Company. To outline the financial condition of the City at the present time, Mayor Counihan called upon Mr. Dennis Ronning, Auditor. Mr. Ronning went over the amounts which were expected to be received and which were necessary to be paid out. He stated that from just a casual study of the items still to be paid it looks as if we still owe on the project approximately $419,000.00. To be paid towards this amount, Mr. Ronning stated that the City had already applied for a partial grant payment in the amount of $176,000.00 which he stated should be received within three or four weeks, . He also stated that the City still had coming from the State of Georgia the amount of $125,000.00 which represented the second half of their part of the project funding. Mr. Ronning stated that this sum would not be received until the end of the project. After making all the known deletions and additions to the agenda Mr. Ronning stated that our liability to the Contractor looked like a $1,201,000.00 to $1,377,000.00, plus any change orders not yet considered. It was Councilman Fahey's thought that since we had already paid $125,000.00 on Griffins current request for $233,000.00 by borrowing $108,000.00 we could complete this payment and have enough left from our grant payment of $176,000.00 to repay the bank as well as make the payment on the next Griffin request which was estimated to be in the vicinity of $50,000.00. e Mr. Ronning picked up the bid figure from the contract which he stated amounted to $1,377,187.60. He stated further that this fugure does not reflect any change orders increases nor . decreases from deletions. He stated further that if there were no decreases and no increases that means the City would owe $188,000.00. additional. So, he stated, it was really unknown what we were going to end up owing the contractor. Councilman Bond suggested that we borrow just what we need at the present time and shoot a projection of what we feel the next payment will be and borrow that much. He then suggested that we adopt a Resolution to borrow the $108,000.00 which was needed immediately and at the same time request the bank to enter a request on our behalf to borrow an additional $50,000.00 in case it were needed prior to receipt of our federal money. A motion was then made by Councilman Fahey that a Resolution be adopted that the $108,000.00 to pay off our present indebtedness and at the same time we get authority to borrow an additional $50,000.00 if the Federal Funds do not come in by the time the next payment request is received from Griffin Construction Company. This motion was seconded by Councilman Bond and unanimously carried RESOLUTION Following the adoption of this Resolution another Resolution was read wherein it was stated that without any further meetings, the Mayor and City Clerk be authorized to borrow an additional $50,000.00 provided the expected Federal money did not come in and this amount to be borrowed at the prevailing rate. Councilman Fahey moved the adoption of this Resolution. It was seconded by Councilman Bond and unanimously carried RESOLUTION The next item on the agenda was the extension of a sewer line to the site of the new Veranda Motel. It was agreed that the City was obligated through a motion made at a previous meeting that $8,000.00 of the cost of extending this line would be absorbed by the City, leaving a balance to be 1 . • -3- paid by Mr. Spirides of $2,405.00 and Councilman Bond was instructed to so notify Mr. Spirides and to proceed with the work. There being no further business, the meeting was adjourned to its next regular or special called meeting. CLERK OF COUNCIL MAYOR 4 1 1 1 1 1 STATE OF GEORGIA ) R E S O L U T I O N COUNTY OF CHATHAM ) AUTHORIZING TEMPORARY LOAN BY THE CITY OF SAVANNAH BEACH, TYBEE ISLAND, GEORGIA, FOR PURPOSES OF PAYING INDEBTEDNESS INCURRED BY SEWERAGE CONSTRUCTION FUND PENDING RE- CEIPT OF GRANT FROM THE UNITED STATES EN- VIRONMENTAL PROTECTION AGENCY WHEREAS, The City of Savannah Beach, Tybee Island, Georgia, is engaged in a sewerage construction project with the assistance of grants from the United States Environmental Protection Agency and the Georgia Environ- mental Protection Department; and WHEREAS, such conditions have been fulfilled by Griffin Construction Company authorizing payment to them for the phase of construction work thus completed; and WHEREAS, the City of Savannah Beach, Tybee Island, Georgia, is presently awaiting payment of a portion of its grant from the United States Environmental Protection Agency, and WHEREAS, the indebtedness due to Griffin Construction Company has become outstanding prior to the City of Savannah Beach, Tybee Island, Georgia receiving its grant 1 1 1 from the United States Environmental Protection Agency, and WHEREAS, the Mayor and Council constitute the governing body of the City of Savannah Beach, Tybee Island, Georgia. NOW, THEREFORE, be it resolved by the Mayor and Council of the City of Savannah Beach, Tybee Island, Georgia, in a legally called meeting, assembled February 24, 1976: That the City of Savannah Beach, Tybee Island, Georgia, is hereby authorized to borrow from Savannah Bank and Trust Company of Savannah, Georgia an additional sum of FIFTY THOUSAND DOLLARS ($50,000.00) as approved by the bank, to be represented by a Promissory Note bearing interest at the prevailing and best obtainable rate of interest to be repaid upon receipt of funds from the United States Environmental Protection Agency due to the City of Savannah Beach, Tybee Island, Georgia, the amount of said funds exceeding the amount to be borrowed, and under all circumstances, to be repaid on or before December 31, 1976. The Promissory Note evidencing said loan shall be executed in the name of the City of Savannah Beach, and signed by the Mayor and Clerk of Council. 1 1 1 Past in regular session this 23rd day of February, 1976. THE CITY OF SAVANNAH BEACH, TYBEE ISLAND, GEORGIA BY: ATTEST: I HEREBY CERTIFY that the above and foregoing is a true and correct copy of a resolution adopted by the Mayor and Council of the City of Savannah Beach, Tybee Island, Georgia, held on February 23, 1976. I further certify that said resolution has not since been changed or amended. THIS the /'Y" day of , 1976. E. M. Patterson Clerk of Council 1 1 STATE OF GEORGIA J X R E S O L U T I O N COUNTY OF CHATHAM X AUTHORIZING TEMPORARY LOAN BY THE CITY OF SAVANNAH BEACH, TYBEE ISLAND, GEORGIA, FOR PURPOSES OF PAYING INDEBTEDNESS INCURRED BY SEWERAGE CONSTRUCTION FUND PENDING RE- CEIPT OF GRANT FROM THE UNITED STATES EN- VIRONMENTAL PROTECTION AGENCY WHEREAS, The City of Savannah Beach, Tybee Island, Georgia, is engaged in a sewerage construction project with the assistance of grants from the United States Environmental Protection Agency and the Georgia Environ- mental Protection Department; and WHEREAS, such conditions have been fulfilled by Griffin Construction Company authorizing payment to them for the phase of construction work thus completed; and WHEREAS, the City of Savannah Beach, Tybee Island, Georgia, is presently awaiting payment of a portion of its grant from the United States Environmental Protection Agency, and WHEREAS, the indebtedness due to Griffin Construc- tion Company has become outstanding prior to the City of Savannah Beach, Tybee Island, Georgia, receiving its 1 1 grant from the United States Environmental Protection Agency, and WHEREAS, the Mayor and Council constitute the govern- ing body of the City of Savannah Beach, Tybee Island, Georgia. NOW, THEREFORE, be it resolved by the Mayor and Council of the City of Savannah Beach, Tybee Island, Georgia, in a legally called meeting, assembled February 24, 1976: That the City of Savannah Beach, Tybee Island, Georgia, is hereby authorized to borrow from Savannah Bank and Trust Company of Savannah, Georgia the sum of ONE- HUNDRED EIGHT THOUSAND DOLLARS ($108,000.00) to be represented by a Promissory Note bearing interest at the prevailing and best obtainable rate of interest per annum, and the entire amount, together with interest to be repaid upon receipt of funds from the United States Environmental Protection Agency due to the City of Savannah Beach, Tybee Island, Georgia, the amount of said funds exceeding the amount to be borrowed, and under all circumstances, to be repaid on or before Decem- ber 31, 1976. The Promissory Note evidencing said loan 1 1 shall be executed in the name of the City of Savannah Beach, and signed by the Mayor and Clerk of Council. 1976. Past in regular session this 23rd day of February, THE CITY OF SAVANNAH BEACH, TYBEE ISLAND, GEORGIA BY: ATTEST: ayor City Clerk I HEREBY CERTIFY that the above and foregoing is a true and correct copy of a resolution adopted by the Mayor and Council of the City of Savannah Beach, Tybee Island, Georgia, held on February 23, 1976. I further certify that said resolution has not since been changed or amended. THIS the 2 V T'day of February, 1976. E. M. PATTERSON CLERK OF COUNCIL